Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | BANCO SANTANDER (Brasil) S.A. |
Entity Central Index Key | 0001471055 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Common | |
Document and Entity Information [Abstract] | |
Entity Common Stock, Shares Outstanding | 3,818,695,031 |
Preferred | |
Document and Entity Information [Abstract] | |
Entity Common Stock, Shares Outstanding | 3,679,836,020 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of financial position [abstract] | |||
Cash and balances with the Brazilian Central Bank | R$ 31716345 | R$ 34124753 | R$ 26284569 |
Financial Assets Held For Trading | 0 | 86,271,097 | 131,245,477 |
Debt instruments | 0 | 34,879,681 | 59,994,946 |
Equity instruments | 0 | 489,770 | 398,461 |
Trading derivatives | 0 | 17,070,125 | 24,480,256 |
Balances With The Brazilian Central Bank | 0 | 33,831,521 | 46,371,814 |
Financial Assets Measured At Fair Value Through Profit Or Loss | 43,711,800 | 0 | 0 |
Debt instruments | 3,171,746 | 0 | 0 |
Balances With The Brazilian Central Bank | 40,540,054 | 0 | 0 |
Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading | 68,852,314 | 0 | 0 |
Debt instruments | 50,066,469 | 0 | 0 |
Equity instruments | 766,333 | 0 | 0 |
Trading derivatives | 18,019,512 | 0 | 0 |
Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss | 917,477 | 0 | 0 |
Equity instruments | 298,297 | 0 | 0 |
Loans and advances to customers | 619,180 | 0 | 0 |
Other Financial Assets At Fair Value Through Profit Or Loss | 0 | 1,692,057 | 1,711,204 |
Debt instruments | 0 | 1,658,689 | 1,668,749 |
Equity instruments | 0 | 33,368 | 42,455 |
Available-For-Sale Financial Assets | 0 | 85,823,384 | 57,815,045 |
Debt instruments | 0 | 84,716,747 | 55,829,572 |
Equity instruments | 0 | 1,106,637 | 1,985,473 |
Financial Assets Measured At Fair Value Through Other Comprehensive Income | 85,436,677 | 0 | 0 |
Debt instruments | 85,395,691 | 0 | 0 |
Equity instruments | 40,986 | 0 | 0 |
Held to maturity investments | 0 | 10,214,454 | 10,048,761 |
Loans and Receivables | 0 | 355,246,574 | 333,997,034 |
Loans and amounts due from credit institutions | 0 | 65,209,902 | 65,711,001 |
Loans and advances to customers | 0 | 272,420,157 | 252,002,774 |
Debt instruments | 0 | 17,616,515 | 16,283,259 |
Financial Assets Measured At Amortized Cost | 417,478,717 | 0 | 0 |
Loans and amounts due from credit institutions | 79,607,001 | 0 | 0 |
Loans and advances to customers | 301,072,207 | 0 | 0 |
Debt instruments | 36,799,509 | 0 | 0 |
Hedging Derivatives | 343,934 | 192,763 | 222,717 |
Non-Current Assets Held For Sale | 1,380,231 | 1,155,456 | 1,337,885 |
Investments in Associates and Joint Ventures | 1,053,315 | 866,564 | 990,077 |
Tax Assets | 31,565,767 | 28,825,741 | 28,753,184 |
Current | 3,885,189 | 4,047,663 | 4,316,072 |
Deferred | 27,680,578 | 24,778,078 | 24,437,112 |
Other Assets | 4,800,467 | 4,578,270 | 5,104,012 |
Tangible Assets | 6,588,975 | 6,509,883 | 6,646,433 |
Intangible Assets | 30,018,988 | 30,202,043 | 30,236,842 |
Goodwill | 28,378,288 | 28,364,256 | 28,355,039 |
Other intangible assets | 1,640,700 | 1,837,787 | 1,881,803 |
TOTAL ASSETS | 723,865,007 | 645,703,039 | 634,393,240 |
Liabilities and Stockholders' Equity | |||
Financial Liabilities Held For Trading | 0 | 49,322,546 | 51,619,869 |
Trading derivatives | 0 | 16,514,154 | 19,925,600 |
Short positions | 0 | 32,808,392 | 31,694,269 |
Financial Liabilities Measured At Fair Value Through Profit Or Loss Held For Trading | 50,938,992 | 0 | 0 |
Trading derivatives | 18,243,315 | 0 | 0 |
Short positions | 32,695,677 | 0 | 0 |
Financial Liabilities Measured At Fair Value Through Profit Or Loss | 1,946,056 | 0 | 0 |
Deposits from Brazilian Central Bank and deposits from credit institutions | 1,946,056 | 0 | 0 |
Financial Liabilities at Amortized Cost | 547,295,169 | 478,880,704 | 471,579,467 |
Deposits from Brazilian Central Bank and deposits from credit institutions | 99,022,806 | 79,374,685 | 78,634,072 |
Customer deposits | 304,197,800 | 276,042,141 | 247,445,177 |
Marketable debt securities | 74,626,232 | 70,247,012 | 99,842,955 |
Subordinated debts | 9,885,607 | 519,230 | 466,246 |
Debt Instruments Eligible to Compose Capital | 9,779,944 | 8,436,901 | 8,311,918 |
Other financial liabilities | 49,782,780 | 44,260,735 | 36,879,099 |
Hedging Derivatives | 223,520 | 163,332 | 311,015 |
Provisions | 14,695,898 | 13,986,916 | 11,776,491 |
Provisions for pensions funds and similar obligations | 3,357,654 | 3,923,457 | 2,710,627 |
Provisions for judicial and administrative proceedings, commitments and other provisions | 11,338,244 | 10,063,459 | 9,065,864 |
Tax Liabilities | 8,074,764 | 8,248,019 | 6,094,740 |
Current | 5,043,375 | 5,751,488 | 4,826,703 |
Deferred | 3,031,389 | 2,496,531 | 1,268,037 |
Other Liabilities | 9,095,148 | 8,013,921 | 8,199,099 |
Total Liabilities | 632,269,547 | 558,615,438 | 549,580,681 |
Stockholders' Equity | 91,881,738 | 87,425,075 | 85,434,855 |
Share capital | 57,000,000 | 57,000,000 | 57,000,000 |
Reserves | 30,377,693 | 28,966,451 | 27,881,326 |
Treasury shares | (461,432) | (148,440) | (514,034) |
Option for Acquisition of Equity Instrument | (1,017,000) | (1,017,000) | (1,017,000) |
Profit for the year attributable to the Parent | 12,582,477 | 8,924,064 | 7,334,563 |
Less: dividends and remuneration | (6,600,000) | (6,300,000) | (5,250,000) |
Other Comprehensive Income | (878,863) | (774,368) | (1,347,800) |
Stockholders' Equity Attributable to the Parent | 91,002,875 | 86,650,707 | 84,087,055 |
Non - Controlling Interests | 592,585 | 436,894 | 725,504 |
Total Stockholders' Equity | 91,595,460 | 87,087,601 | 84,812,559 |
Total Liabilities and Stockholders' Equity | R$ 723865007 | R$ 645703039 | R$ 634393240 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - BRL (R$) shares in Thousands, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Line Items [Line Items] | |||
Interest and similar income | R$ 70478393 | R$ 71418349 | R$ 77146077 |
Interest expense and similar charges | (28,557,051) | (36,471,860) | (46,559,584) |
Net interest income | 41,921,342 | 34,946,489 | 30,586,493 |
Income from equity instruments | 32,623 | 83,120 | 258,545 |
Income from companies accounted for by the equity method | 65,958 | 71,551 | 47,537 |
Fee and commission income | 17,728,452 | 15,815,543 | 13,548,481 |
Fee and commission expense | (3,596,293) | (3,093,675) | (2,570,885) |
Gains (losses) on financial assets and liabilities (net) | (2,782,802) | 969,090 | 3,016,156 |
Financial assets held for trading | 0 | 1,174,111 | 3,166,399 |
Financial Assets At Fair Value Through Profit Or Loss | (138,673) | 0 | 0 |
Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading | (2,764,859) | 0 | 0 |
Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss | 61,239 | 0 | 0 |
Other financial instruments at fair value through profit or loss | 0 | 30,694 | 82,638 |
Financial instruments not measured at fair value through profit or loss | (138,104) | (122,115) | (115,202) |
Other | 197,595 | (113,600) | (117,679) |
Exchange differences (net) | (2,806,471) | 605,056 | 4,574,814 |
Other operating expense (net) | (1,055,850) | (672,013) | (624,571) |
Total Income | 49,506,959 | 48,725,161 | 48,836,570 |
Administrative expenses | (16,792,138) | (16,120,595) | (14,920,410) |
Personnel expenses | (9,206,007) | (8,937,278) | (8,377,265) |
Other administrative expenses | (7,586,131) | (7,183,317) | (6,543,145) |
Depreciation and amortization | (1,739,959) | (1,662,247) | (1,482,639) |
Tangible assets | (1,216,704) | (1,190,967) | (1,154,588) |
Intangible assets | (523,255) | (471,280) | (328,051) |
Provisions (net) | (1,999,604) | (3,309,239) | (2,724,742) |
Impairment losses on financial assets (net) | (12,713,435) | (12,338,300) | (13,301,445) |
Loans and receivables | 0 | (12,338,141) | (13,389,834) |
Financial Assets Measured At Amortized Cost and contingent commitments | (12,713,532) | 0 | 0 |
Gains (losses) due to derecognition of financial assets measured at amortized cost | 97 | (159) | 88,389 |
Impairment losses on other assets (net) | (508,310) | (456,711) | (114,321) |
Other intangible assets | (300,865) | (306,110) | (5,838) |
Other assets | (207,445) | (150,601) | (108,483) |
Gains (losses) on disposal of assets not classified as non-current assets held for sale | (25,476) | (64,302) | 3,816 |
Gains (losses) on non-current assets held for sale not classified as discontinued operations | 181,734 | (260,083) | 87,073 |
Operating Income Before Tax | 15,909,771 | 14,513,684 | 16,383,902 |
Income taxes | (3,109,853) | (5,375,636) | (8,918,984) |
Consolidated Net income for the period | 12,799,918 | 9,138,048 | 7,464,918 |
Profit attributable to the Parent | 12,582,477 | 8,924,064 | 7,334,563 |
Profit attributable to non-controlling interests | R$ 217441 | R$ 213984 | R$ 130355 |
Basic earnings per 1,000 shares (Brazilian Reais) | |||
Earnings Per Share (Brazilian Reais) | |||
Common shares | R$ 1604.34 | R$ 1133.43 | R$ 929.93 |
Preferred shares | 1,764.78 | 1,246.77 | 1,022.92 |
Diluted earnings per 1,000 shares (Brazilian Reais) | |||
Earnings Per Share (Brazilian Reais) | |||
Common shares | 1,604.34 | 1,132.44 | 929.03 |
Preferred shares | R$ 1764.78 | R$ 1245.69 | R$ 1021.93 |
Net Profit attributable - Basic (Brazilian Reais) | |||
Earnings Per Share (Brazilian Reais) | |||
Common shares | R$ 6108349 | R$ 4332026 | R$ 3560288 |
Preferred shares | 6,474,128 | 4,592,038 | 3,774,275 |
Net Profit attributable - Diluted (Brazilian Reais) | |||
Earnings Per Share (Brazilian Reais) | |||
Common shares | 6,108,349 | 4,331,955 | 3,560,222 |
Preferred shares | R$ 6474128 | R$ 4592109 | R$ 3774341 |
Weighted average shares outstanding (in thousands) - Basic | |||
Earnings Per Share (Brazilian Reais) | |||
Common shares | 3,807,386 | 3,822,057 | 3,828,555 |
Preferred shares | 3,668,527 | 3,683,145 | 3,689,696 |
Weighted average shares outstanding (in thousands) - Diluted | |||
Earnings Per Share (Brazilian Reais) | |||
Common shares | 3,807,386 | 3,825,313 | 3,832,211 |
Preferred shares | 3,668,527 | 3,686,401 | 3,693,352 |
CONSOLIDATED STATEMENT OF OTHER
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Profit or loss [abstract] | |||
Consolidated profit for the year | R$ 12799918 | R$ 9138048 | R$ 7464918 |
Other Comprehensive Income that will be reclassified subsequently to profit or loss when specific conditions are met: | 558,967 | 1,194,335 | 3,725,565 |
Available-for-sale financial assets | 0 | 1,147,384 | 3,311,607 |
Valuation adjustments - Gains (Losses) | 0 | 1,789,286 | 5,458,735 |
Amounts transferred to income statement | 0 | 30,694 | 82,638 |
Income taxes | 0 | (672,596) | (2,229,766) |
Financial Assets Measured At Fair Value Through Other Comprehensive Income | 475,809 | 0 | 0 |
Financial Assets Measured At Fair Value Through Other Comprehensive Income | 388,481 | 0 | 0 |
Gains (Losses) on financial assets previously classified as available-for-sale and reclassified to the income statement (net) | 7,982 | 0 | 0 |
Gains (Losses) on financial assets previously classified as available-for-sale and reclassified to reserves (net) | 296,802 | 0 | 0 |
Income taxes | (217,456) | 0 | 0 |
Cash flow hedges | 83,158 | 46,951 | 413,958 |
Valuation adjustments | 140,811 | 73,238 | 761,423 |
Amounts transferred to income statement | (6,767) | 0 | 1,580 |
Income taxes | (50,886) | (26,287) | (349,045) |
Net investment hedge | 0 | 0 | 634,207 |
Net investment hedge | 0 | 0 | 1,209,338 |
Income taxes | 0 | 0 | (575,131) |
Translation adjustments investment abroad | 0 | 0 | (634,207) |
Exchange on investments Abroad | 0 | 0 | (634,207) |
Other Comprehensive Income that will not be Reclassified to net Income: | (366,660) | (620,903) | (941,833) |
Defined benefits plan | (366,660) | (620,903) | (941,833) |
Defined benefits plan | (418,768) | (992,156) | (1,568,122) |
Income taxes | 52,108 | 371,253 | 626,289 |
Total Comprehensive Income | 12,992,225 | 9,711,480 | 10,248,650 |
Attributable to the parent | 12,774,784 | 9,497,496 | 10,118,295 |
Attributable to non-controlling interests | 217,441 | 213,984 | 130,355 |
Total comprehensive income | R$ 12992225 | R$ 9711480 | R$ 10248650 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - BRL (R$) R$ in Thousands | Total | Share Capital | Reserves | Treasury Shares | Option for Acquisition of Equity Instrument | Profit Attributed to the Parent | Dividends and Remuneration | Total Stockholders' Equity | Available-for-sale Financial Assets | Financial Assets Measured At Fair Value Through Other Comprehensive Income | Defined Benefits plan | Translation adjustments investment abroad | Gains and losses - Cash flow hedge and Investment | Total | Non-controlling Interests |
Balance at Dec. 31, 2015 | R$ 79835284 | R$ 57000000 | R$ 24388967 | R$ 423953 | R$ 1017000 | R$ 9783740 | R$ 6200000 | R$ 83531754 | R$ 2645417 | R$ 1141644 | R$ 1493577 | R$ 1838048 | R$ 79400222 | R$ 435062 | |
Total comprehensive income | 10,248,650 | 7,334,563 | 7,334,563 | 3,311,607 | (941,833) | (634,207) | 1,048,165 | 10,118,295 | 130,355 | ||||||
Net profit | 7,464,918 | 7,334,563 | 7,334,563 | 7,334,563 | 130,355 | ||||||||||
Other comprehensive income | 2,783,732 | 3,311,607 | (941,833) | (634,207) | 1,048,165 | 2,783,732 | |||||||||
Financial Assets Measured At Fair Value Through Other Comprehensive Income | 3,311,607 | 3,311,607 | 3,311,607 | ||||||||||||
Pension plans | (941,833) | (941,833) | (941,833) | ||||||||||||
Translation adjustments investment abroad | (634,207) | (634,207) | (634,207) | ||||||||||||
Gain and loss - Cash flow and investment hedge | 1,048,165 | 1,048,165 | 1,048,165 | ||||||||||||
Appropriation of net income from prior years | 9,783,740 | (9,783,740) | |||||||||||||
Dividends and interest on capital | (5,250,000) | (6,200,000) | 950,000 | (5,250,000) | (5,250,000) | ||||||||||
Share based compensation | (35,463) | (35,463) | (35,463) | (35,463) | |||||||||||
Treasury shares | (90,031) | (90,031) | (90,031) | (90,031) | |||||||||||
Capital restructuring | (50) | (50) | (50) | (50) | |||||||||||
Treasury shares income | (11,574) | (11,574) | (11,574) | (11,574) | |||||||||||
Other | 115,743 | (44,344) | (44,344) | (44,344) | 160,087 | ||||||||||
Balance at Dec. 31, 2016 | 84,812,559 | 57,000,000 | 27,881,326 | (514,034) | (1,017,000) | 7,334,563 | (5,250,000) | 85,434,855 | 666,190 | (2,083,477) | 859,370 | (789,883) | 84,087,055 | 725,504 | |
Total comprehensive income | 9,711,480 | 8,924,064 | 8,924,064 | 1,147,384 | (620,903) | 46,951 | 9,497,496 | 213,984 | |||||||
Net profit | 9,138,048 | 8,924,064 | 8,924,064 | 8,924,064 | 213,984 | ||||||||||
Other comprehensive income | 573,432 | 1,147,384 | (620,903) | 46,951 | 573,432 | ||||||||||
Financial Assets Measured At Fair Value Through Other Comprehensive Income | 1,147,384 | 1,147,384 | 1,147,384 | ||||||||||||
Pension plans | (620,903) | (620,903) | (620,903) | ||||||||||||
Gain and loss - Cash flow and investment hedge | 46,951 | 46,951 | 46,951 | ||||||||||||
Appropriation of net income from prior years | 7,334,563 | (7,334,563) | |||||||||||||
Dividends and interest on capital | (6,300,000) | (5,250,000) | (1,050,000) | (6,300,000) | (6,300,000) | ||||||||||
Share based compensation | 37,161 | 37,161 | 37,161 | 37,161 | |||||||||||
Treasury shares | (378,776) | (744,419) | 365,643 | (378,776) | (378,776) | ||||||||||
Capital restructuring | (49) | (49) | (49) | (49) | |||||||||||
Treasury shares income | (2,498) | (2,498) | (2,498) | (2,498) | |||||||||||
Other | (792,276) | (289,682) | (289,682) | (289,682) | (502,594) | ||||||||||
Balance at Dec. 31, 2017 | 87,087,601 | 57,000,000 | 28,966,451 | (148,440) | (1,017,000) | 8,924,064 | (6,300,000) | 87,425,075 | R$ 1813574 | R$ 1813574 | (2,704,380) | 859,370 | (742,932) | 86,650,707 | 436,894 |
Effects of IFRS 9 first adoption | (1,541,825) | (1,245,023) | (1,245,023) | (296,802) | (1,541,825) | ||||||||||
Balance at January 1, 2018 | 85,545,776 | 57,000,000 | 27,721,428 | (148,440) | (1,017,000) | 8,924,064 | (6,300,000) | 86,180,052 | 1,516,772 | (2,704,380) | 859,370 | (742,932) | 85,108,882 | 436,894 | |
Total comprehensive income | 12,992,225 | 12,582,477 | 12,582,477 | 475,809 | (366,660) | 83,158 | 12,774,784 | 217,441 | |||||||
Net profit | 12,799,918 | 12,582,477 | 12,582,477 | 12,582,477 | 217,441 | ||||||||||
Other comprehensive income | 192,307 | 475,809 | (366,660) | 83,158 | 192,307 | ||||||||||
Financial Assets Measured At Fair Value Through Other Comprehensive Income | 475,809 | 475,809 | 475,809 | ||||||||||||
Pension plans | (366,660) | (366,660) | (366,660) | ||||||||||||
Gain and loss - Cash flow and investment hedge | 83,158 | 83,158 | 83,158 | ||||||||||||
Appropriation of net income from prior years | 8,924,064 | (8,924,064) | |||||||||||||
Own Instrument Acquisition Option | 106,440 | 106,440 | 106,440 | (106,440) | |||||||||||
Dividends and interest on capital | (6,600,000) | (6,300,000) | (300,000) | (6,600,000) | (6,600,000) | ||||||||||
Share based compensation | (17,854) | (17,854) | (17,854) | (17,854) | |||||||||||
Treasury shares | (312,305) | (312,305) | (312,305) | (312,305) | |||||||||||
Capital restructuring | (687) | (687) | (687) | (687) | |||||||||||
Treasury shares income | (15,868) | (15,868) | (15,868) | (15,868) | |||||||||||
Other | 4,173 | (40,517) | (40,517) | (40,517) | 44,690 | ||||||||||
Balance at Dec. 31, 2018 | R$ 91595460 | R$ 57000000 | R$ 30377693 | R$ 461432 | R$ 1017000 | R$ 12582477 | R$ 6600000 | R$ 91881738 | R$ 1992581 | R$ 3071040 | R$ 859370 | R$ 659774 | R$ 91002875 | R$ 592585 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
1. Cash Flows From Operating Activities | |||
Consolidated profit for the year | R$ 12799918 | R$ 9138048 | R$ 7464918 |
Adjustments to profit | 14,765,404 | 17,015,113 | 20,143,702 |
Depreciation of tangible assets | 1,216,704 | 1,190,967 | 1,154,588 |
Amortization of intangible assets | 523,255 | 471,280 | 328,051 |
Impairment losses on other assets (net) | 508,310 | 456,711 | 114,321 |
Provisions and Impairment losses on financial assets (net) | 14,713,039 | 15,647,539 | 16,026,187 |
Net Gains (losses) on disposal of tangible assets, investments and non-current assets held for sale | (156,258) | 324,385 | (90,889) |
Income from companies accounted by the equity method | (65,958) | (71,551) | (47,537) |
Changes in deferred tax assets and liabilities | (1,594,440) | (406,395) | 5,343,885 |
Monetary Adjustment of Escrow Deposits | (664,003) | (637,124) | (749,040) |
Recoverable Taxes | (222,402) | (210,834) | (215,228) |
Effects of Changes in Foreign Exchange Rates on Cash and Cash Equivalents | 0 | 0 | 2,289,849 |
Effects of Changes in Foreign Exchange Rates on Assets and Liabilities | 1,173,757 | 33,691 | (3,924,662) |
Other | (666,600) | 216,444 | (85,823) |
Net (increase) decrease in operating assets | (79,913,313) | (16,745,263) | (59,866,978) |
Balance with the Brazilian Central Bank | 16,629,126 | (7,043,255) | 60,163,587 |
Financial assets held for trading | 0 | 44,950,707 | (80,367,944) |
Financial Assets Measured At Fair Value Through Profit Or Loss | (8,791,116) | 0 | 0 |
Other Financial Assets Measured At Fair Value Through Profit Or Loss | 1,692,154 | 18,988 | 457,419 |
Financial Assets Measured At Fair Value Through Profit Or Loss Held for Trading | (16,412,738) | 0 | 0 |
Non-Trading Financial Assets Mandatorily Measured at Fair Value Through Profit or Loss | (419,851) | 0 | 0 |
Available-for-sale financial assets | 0 | (27,214,188) | 9,976,210 |
Financial Assets Measured At Fair Value Through Other Comprehensive Income | (4,323,459) | 0 | 0 |
Loans and receivables | 0 | (30,256,590) | (43,422,496) |
Financial Assets Measured At Amortized Cost | (75,906,801) | 0 | 0 |
Held to maturity investments | 0 | (26,266) | (449,792) |
Other assets | 7,619,372 | 2,825,341 | (6,223,962) |
Net increase (decrease) in operating liabilities | 64,293,934 | 44,163,382 | 43,247,080 |
Financial liabilities held for trading | 0 | (2,297,323) | 9,232,101 |
Financial Liabilities Measured At Fair Value Through Profit Or Loss held for trading | 1,616,446 | 0 | 0 |
Financial Liabilities Measured At Fair Value Through Profit Or Loss | 1,946,056 | 0 | 0 |
Financial liabilities at amortized cost | 57,833,935 | 43,702,283 | 32,696,894 |
Other liabilities | 2,897,497 | 2,758,422 | 1,318,085 |
Tax paid | (3,668,571) | (3,280,230) | (4,240,115) |
Total net cash flows from operating activities (1) | 8,277,372 | 50,291,050 | 6,748,607 |
2. Cash Flows From Investing Activities | |||
Investments | (3,157,794) | (2,197,918) | (1,945,372) |
Capital increase in Investments in associates and Joint Ventures | (36,051) | (34,154) | (3,105) |
Acquisition of subsidiary, less net cash in the acquisition | (111,224) | (275,091) | (392,998) |
Tangible assets | (1,394,299) | (1,106,406) | (873,140) |
Intangible assets | (1,616,222) | (738,554) | (670,576) |
Corporate Restructuring | 2 | (43,713) | (5,553) |
Disposal | 797,716 | 744,913 | 677,088 |
Capital reduction of investee in joint control | 0 | 0 | 76,860 |
Tangible assets | 122,009 | 37,467 | 42,226 |
Non - current assets held for sale | 563,607 | 434,553 | 208,232 |
Dividends and interest on capital received | 112,100 | 272,893 | 349,770 |
Total net cash flows from investing activities (2) | (2,360,078) | (1,453,005) | (1,268,284) |
3. Cash Flows From Financing Activities | |||
Acquisition of own shares | (312,305) | (378,776) | (90,031) |
Issuance of Debt Instruments Eligible to Compose Capital | 9,347,750 | 0 | 0 |
Issuance of other long-term financial liabilities | 73,765,081 | 59,663,420 | 50,313,469 |
Dividends and interest on capital paid | (6,076,073) | (5,652,081) | (3,210,762) |
Payments of other long-term financial liabilities | (78,903,009) | (97,009,957) | (56,164,769) |
Payments of subordinated liabilities | (544,566) | 0 | (8,362,652) |
Payments of interest of Debt Instruments Eligible to Compose Capital | (683,783) | (623,146) | (701,671) |
Net increase in non-controlling interests | 55,869 | (296,184) | 23,909 |
Capital Increase in Subsidiaries, by Non-Controlling Interests | 48,000 | 0 | 0 |
Total net cash flows from financing activities (3) | (3,303,036) | (44,296,724) | (18,192,507) |
Exchange variation on Cash and Cash Equivalents (4) | 0 | 0 | (2,289,849) |
Net Increase in Cash (1+2+3+4) | 2,614,258 | 4,541,321 | (15,002,033) |
Cash and cash equivalents at beginning of year | 22,670,902 | 18,129,581 | 33,131,614 |
Cash and cash equivalents at end of year | 25,285,160 | 22,670,902 | 18,129,581 |
Cash and cash equivalents components | |||
Cash and Balances With The Brazilian Central Bank | 19,463,587 | 20,642,321 | 14,683,735 |
Loans and other | 5,821,573 | 2,028,581 | 3,445,846 |
Total of cash and cash equivalents | 25,285,160 | 22,670,902 | 18,129,581 |
Non-cash transactions | |||
Foreclosures loans and other assets transferred to non-current assets held for sale | 785,139 | 524,497 | 834,903 |
Dividends and interest on capital declared but not paid | 4,800,000 | 4,455,000 | 4,750,000 |
Supplemental information | |||
Interest received | 70,831,205 | 73,094,248 | 75,818,511 |
Interest paid | R$ 29796455 | R$ 37948828 | R$ 46051070 |
Introduction, basis of presenta
Introduction, basis of presentation of the consolidated financial statements and other information | 12 Months Ended |
Dec. 31, 2018 | |
Introduction, basis of presentation of the consolidated financial statements and other information [Abstract] | |
Introduction, basis of presentation of the consolidated financial statements and other information | 1. Introduction, basis of presentation of the consolidated financial statements and other information a) Introduction Banco Santander (Brasil) S.A. (Banco Santander or Bank), directly and indirectly controlled by Banco Santander, S.A., based in Spain (Banco Santander Spain), is the lead institution of the Financial and Prudential Conglomerate (Conglomerate Santander) under the authority of the Brazilian Central Bank (Bacen), established as a corporation, with headquarters at Avenida Presidente Juscelino Kubitschek, 2041 and 2235 - A Block - Vila Olímpia - São Paulo - SP. Banco Santander operates as a multiple service bank, conducting its operations by means of portfolios such as commercial, investment, loans and advances, mortgage loans, leasing, credit card operations and foreign exchange. Through its subsidiaries, the Bank also operates in the payment institution, leasing, shares club management, securities and insurance brokerage operations, capitalization and pension plan. The Bank's activities are conducted within the context of a group of institutions that operate on an integrated basis in the financial market. The corresponding benefits and costs of providing services are absorbed between them, they are conducted in the normal course of business and under commutative conditions. The consolidated financial statements for the year ended on December 31, 2018, were authorized to be issued by the Board of directors at the meeting held on February 25, 2019. b) Basis of presentation of the consolidated financial statements These consolidated financial statements were prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and the interpretations issued by the IFRS Interpretations Committee (Current name of International Financial Reporting Interpretations Committee - IFRIC). All the relevant information specific to Banco Santander's financial statements, and only these, are being evidenced, and correspond to those used by Banco Santander in its management. c) Other information c.1) Adoption of new standards and interpretations Since January 1, 2018, the Bank has adopted the new rule IFRS 9 and IFRS 15. • IFRS 9 - Financial Instruments: issued in its original format in July 2014, the IASB - International Accounting Standards Board approved the IFRS 9, which replaces the IAS 39 Financial Instruments, according to the guidelines arising from the G-20 (group composed by the finance ministers from 20 of the largest economies in the world) meeting, held in April 2009, establishing the financial instruments recognition and measurement. i. Transition As permitted by the transitional provisions of IFRS 9, the Group elected not to restate comparative figures. Any adjustments to the carrying amounts of financial assets and liabilities at the date of transition were recognised in the opening retained earnings and other reserves of the current period. The Group has also elected to continue to apply the hedge accounting requirements of IAS 39 on adoption on IFRS 9. Consequently, for notes disclosures, the consequential amendments to IFRS 7 disclosures have also only been applied to the current period. The comparative period notes disclosures repeat those disclosures made in the prior year. ii. Financial assets and liabilities Initial recognition and measurement The Bank recognizes initially the loans and advances, deposits, debt instruments issued and subordinated liabilities at the date of origin. All other financial instruments (including regular financial assets purchases and sales) are recognized at the date of trade which corresponds to when the Bank entered into the agreement. A financial asset or liability is measured initially at fair value, added, in the case of an item not measured at fair value, by transaction cost directly attributable to its acquisition or issuance. iii. Classification Financial assets On the initial recognition a financial asset is classified as measured at amortized cost, fair value through other comprehensive income and fair value through profit or loss. A financial asset is measured at amortized cost if the following conditions are met and if it is not classified as measured at fair value through profit and loss: • The asset is held in a business model which its purpose is to hold assets in order to collect their cash flows; • The agreement terms of the financial asset generate, in specific dates, cash flows which referred exclusively to the payment of principal and interests. A debt instrument is measured at fair value through other comprehensive income if the following conditions are met and if it is not classified as measured at fair value through profit and loss: • The asset is held in a business model which its purpose is to hold assets in order to collect their cash flows and the disposal of financial assets; and • The agreement terms of the financial asset generate, in specific dates, cash flows which referred exclusively to the payment of principal and interests. On the initial recognition of an equity instrument not held for trading, the Bank may choose in an irrevocable way to recognize the subsequent fair value changes in Other Comprehensive Income (OCI). This option is made considering each investment individually. The option was not used by the Bank. All other financial assets are classified as measured at fair value through profit and loss (FVPL). Besides that, on the initial recognition, the Bank may irrevocably classify as measured at fair value through profit and loss a financial asset which, in other way, meet the requirements to be measured at amortized cost or at fair value through other comprehensive income if this classification eliminates or reduces substantially an accounting mismatch that could ever exist. This option was not used by the Bank. iv. Business model evaluation The Bank evaluates the purpose of its business models in which the assets are held in the portfolio level to evaluate the way the business is managed and information is provided to the Management. The information considered are: • Defined policies and goals for the portfolio and the application of such policies. Highlighting, if Management's strategy is focused on receiving contractual interest income, it should maintain a specific interest rate profile, or to adequate the assets duration; • How the portfolio performance is evaluated and how it is reported to the Bank Management; • The risks that affects the business model performance (and financial assets held in that business model) and how those risks are managed; • How the business managers are compensated - for example - if the compensation is related to the fair value of the assets or in the contractual cash flows received; • The frequency, volume and the moment of the sales in previous periods, the reason of such sales and their expectation over future sales. The information regarding sales activity should not be considered in isolation, but as part of a general evaluation of how the goal defined by the Bank to manage the financial assets is being achieved. The financial assets held for trading or managed, which performance is evaluated based on the fair value, are measured at fair value through profit and loss once they are not held to receive the contractual cash flows nor to receive the contractual cash flows and financial assets sale. v. Evaluation to determine if the contractual cash flows refer exclusively to principal and interest payments For the purpose of this evaluation, “principal” is defined as the fair value of financial asset on the initial recognition. “Interests” are defined as the consideration for the value of the currency in time and to the credit risk associated to the amount of principal during a specific period and for other risks and loans basic costs (for example, liquidity risk and administrative costs) as well as for the profit margin. • contingent events that could change the cash flows amount and deadline; • leverage; • prepayment deadlines and extension; • terms that limit the Bank rights over the cash flows; and • resources that modify the consideration of the currency value in time - for example, periodic readjustment of interest rates. vi. Reclassification of the Financial Assets Categories Financial assets are not reclassified subsequent to their initial recognition, except in the period after the Bank changes its business model to manage its financial assets. vii. Financial assets write-off The Bank writes-off a financial asset when the asset´s contractual cash flow expires or when the Bank transfers the rights to receive the contractual cash flow in a transaction which essentially all risks and benefits of the financial asset property are transferred or that the Bank does not transfer nor keep substantially all risks and benefits of the financial asset property and does not control it. In the event of a financial asset written-off, the difference between the book value of the asset (or the book value allocated to the part of the asset written-off) and the sum of (i) the payments received (including any other obtained asset, deducted by any liability assumed) and (ii) possible gains or losses accumulated recognized in “Other comprehensive income” is registered in the income statement. From the aforementioned adoption date of the IFRS, possible gains/losses accumulated and recognized in “Other comprehensive income” related to the equity instruments designated at fair value through other comprehensive income are not registered in the income statement through write-off of such instruments. Transfer operations in which the Bank does not maintain or transfer substantially all risks and benefits of a financial asset property or retain its control, the Bank continues to recognize the asset in the extent of its continuous involvement, determined by the extent of the its exposure to changes in the asset value transferred. viii. Financial Liabilities write-off The Bank writes-off a financial liability when its contractual obligations are extinct, canceled or expired. ix. Effective interest rate The effective interest rate is the rate used to discount exclusively the payments or receipts of estimated cash flow during the expected life time of the financial asset or liability to the gross accounting value of a financial asset (that is, its amortized cost before any impairment provision) or the amortized cost of a financial liability. The calculation includes transaction costs, premium or discounts and interest rates paid or received that are parties of the effective interest rate, such as origin rates. 1) Changes in the financial assets and liabilities i. Financial assets If the terms of a financial asset are modified, the Bank assess if the its cash flows are substantially different. If the cash flows are substantially different, the contractual rights to the cash flows of the original financial asset are considered matured. In this case, the original financial asset is written-off and a new financial asset is recognized at fair value. If the cash flow of the modified asset measured at amortized cost are not substantially different, the modification does not result in the write-off of the financial asset. In this case, the Bank recalculates the gross accounting value of the financial asset and recognizes the value derived from the adjustments to the accounting value as gain or loss from the modification in the income statement. If a modification of this nature is made due to financial difficulties of the debtor, gains or losses are presented in conjunction with impairment losses. In other cases, they are presented as interest income. Interest income The interest income is calculated applying the effective interest rate to the gross book value of the financial assets, except: (a) Impaired financial assets acquired or originated for those which the effective original adjusted interest rate to credit is applied to the amortized cost of the financial asset. (b) Impaired financial assets acquired or originated, but posteriorly presented a default event (or “stage 3”), for which the interest income is calculated applying the effective interest rate to the amortized cost net of provision. Equity instruments Equity instruments are instruments that comply with the definition of equity in the issuer point of view, that is, instruments that do not have contractual obligation of payment and that highlight residual interest in the issuer's equity. Examples of equity instruments include common shares. Financial liabilities The Bank writes-off a financial liability when its terms are modified, and the cash flows are substantially different. In this case a new financial liability is recognized at fair value based in the modified terms. The difference between the book value of the extinct financial liability and the new financial liability with modified terms is recognized in the income statement. Offset The financial assets and liabilities are offset, and the net value presented in the financial statement when, and only when, the Bank currently has the right to legally offset the amounts and the intention to settle them together or realize the asset and liability simultaneously. Incomes and expenses are presented offset only when it is allowed by IFRS rules or for gains or losses derived from similar group of operations, as in the Bank's trading activity. ii. Fair value measurement The “fair value” corresponds to the price that would be received in the sale of an asset or payment of a liability in a transaction organized between participants of the market at the date of measurement in the main market or, in its absence, in the most advantageous market which the Bank has access at that date. The fair value of a liability reflects its risk of default. The fair value of an on demand resource financial liability (demand deposit, for example) is not inferior to the value to pay on demand, discounted from the date that the payment could be required. iii. Impairment The Bank registers impairment provisions of credit expected related to the following financial instruments not measured at fair value through profit and loss: • financial assets that are debt instruments; • lease payments receivable; • issued financial warranties contracts; and • issued loan commitments. No impairment loss is registered for equity instruments. The Bank measures the loss allowance at a value equal to credit losses during the lifetime, except for the following instruments, for which are registered 12-month expected credit losses: • debt instruments that present low credit risk at the closing date; and • other financial instruments (except amounts lease payments receivable) in which the credit risk did not substantially increase since their initial recognition. The allowance for losses on lease operations are always measured at the value equal to the expected credit loss during their lifetime. iv. Measurement of expected credit losses The expected credit losses are a weighted estimate of credit loss probability. They are measured as follows: • financial assets not subjected to impairment at the closing date: as the present value of all cash insufficiencies that is, the difference between the cash flows due and the cash flows that the Bank expects to receive; • financial assets subjected to impairment at the closing date: as the difference between the gross book value and the present value of estimate cash flows; • loan commitments to be released: as the present value of the difference between the contractual cash flows due for the Bank in case of the totally usage of the commitment and the cash flows that the Bank expects to receive; and • financial warranty contracts: expected payments to reimburse the owner deducted by the amount that the Bank expects to recover. v. Modified assets If the terms of a financial asset are not renegotiated or modified or an existing financial asset is replaced by a new asset due to financial difficulties of the debtor, it is necessary to evaluate if the financial asset should be written-off and the expected credit losses are measured as follow: • If the expected restructuring does not result in the write-off of the existing asset, the expected fair value of the new asset is treated as final cash flow of the existing financial asset at the moment its writte-off. This amount is included in the calculation of cash insufficiency discounted from the estimate date of write-off until the closing date, using the original effective interest rate of the existing financial asset. vi. Determining significant increases in credit risk At each financial statement reporting date, the Bank evaluates whether the financial assets measured at amortized cost and the debt financial instruments measured at fair value through other comprehensive income are subjected to impairment, as others financial instruments subject to such assessment. . A financial asset is “subjected to impairment” when one or more events which impact negatively the future cash flows estimate of the financial asset occurs. The evidence that a financial asset is subject to impairment includes the following observable information: • significant financial difficulty of the debtor or issuer; • delays of its contractual obligations; • breach of contract, like default or delay; • the restructuring of a loan or advance by the Group in conditions that the Group does not consider as interesting to evaluate; • the probability that the debtor goes bankrupt or in a financial reorganization; or • the disappearance of an active market for securities due to financial difficulties. A financial instrument that has been renegotiated due to the financial deterioration of the borrower is generally considered as subject to impairment unless there might be an evidence that the risk of not receiving the contractual cash flow has been significantly reduced and there is no other impairment indicator. vii. Presentation of expected credit losses in the financial statements The allowance for expected credit losses is presented in the financial statements as follow: • financial assets measured at amortized cost: as a deduction on the gross book amount of the assets; • loans commitments and financial warranty contracts: generally, as a provision; and • debt instruments measured at fair value through other comprehensive income: no loss provision is registered in the financial statements, because the book amount of such assets corresponds to the fair value. viii. Impairment objective evidence In each closing date, the Bank evaluates the existence of the objective evidence that the financial assets not measured at fair value through profit and loss become impaired. A financial asset or group of financial assets are impaired when objective evidences have shown that the event of loss occurred after the asset's initial recognition and the event of loss impacted the asset's future cash flows that could be estimated safely. Objective evidences that the financial assets are impaired include: • significative financial difficulty of a debtor or issuer; • default or arrears by a debtor; • the restructuring of a loan or advance by the Bank in conditions the Bank would not consider as interesting to evaluate; • indication that a debtor or issuer could go bankrupt; • the disappearing of an active market for a financial asset; or • observable information related to a group of assets, such as changes in the payment status from the borrowers or issuers in the group, or economic conditions correlated to the group's default. Loans that has been renegotiated due to the financial deterioration of the borrower is generally considered as impaired unless there might be an evidence that the risk of not receiving the contractual cash flow has been significantly reduced and there is no other impairment indicator. All loans and advances and investment securities at amortized cost, individually significant were submitted to an impairment test. Loans and advances and investment securities at amortized cost not considered as individually significant were collectively submitted to the impairment test through the grouping of loans and advances and investment securities at amortized cost with similar characteristics of credit risk. ix. Individual or collective evaluation An individual impairment measurement was based on the Management's best estimate of the cash flows present value expected to receive. When estimating these cash flows the Management uses its judgment related to the financial situation of a debtor and to the net realizable value of any underlying collateral. Each impaired asset was evaluated in terms of their merits, since the test strategy and the cash flows estimated considered recoverable were approved by Credit Risk. When assessing a need for collective allowance for losses, Management considered factors such as credit quality, portfolio size, concentration and economic factors. In order to estimate the provision needed, assumptions were established to define how the inherent losses were modeled and to determine the parameters of necessary information, based on the historic experience and current economic conditions. x. Impairment measurement The impairment losses for assets measured at amortized cost were calculated as the difference between the book value and the present value of the future cash flow estimated, discounted by the asset's original effective interest rate. The impairment losses for asset classified as available for sale by the other comprehensive income were calculated as the difference between the book value and the fair value. xi. Impairment reversal For asset measured at amortized cost: If an event occurred after the impairment caused the reduction in the impairment loss value, the reduction will be reverted in the income statement. For securities classified as available for sale by the other comprehensive income: If, in a subsequent period, the fair value of a debt security impaired has increased and this event can be reliably linked to an event occurred after the impairment recognition, the impairment loss value reduced was reverted in the income statement; otherwise, any increase in the fair value is recognized in the other comprehensive income. Any subsequent recovery of the equity instrument fair value classified as available for sale and reduced by impairment was recognized at any time in other comprehensive income. The conciliation of stockholders' equity resulting from the initial adoption of IFRS 9 is as follows: Equity conciliation Equity before IFRS 9 adjustments - 12/31/2017 87,087,601 Allowance for loan losses (2,149,051) Provision for contingent liabilities (674,513) Re-measurement of assets arising from the new categories 17,806 Others 237,867 Deferred tax 1,026,066 Equity after IFRS 9 adjustments - 1/01/2018 85,545,776 2) Designation at fair value through profit and loss i. Financial Assets At the initial recognition, the Bank has determined specific financial assets to be measured at fair value through profit or loss, once this determination quits or significantly decreases an accounting mismatch that could occur. 3) Values of expected credit losses Information, assumptions and techniques used in the impairment estimate i. Classification of financial instruments by stages The financial instruments portfolio subject to impairment is divided by three levels, based on the stage of each instrument related to credit risk level: - Stage 1: It is understood that a financial instrument in this phase has not a significant increase in its risk since the initial recognition. The provision for this asset represents the expected loss resulting from possible non-compliance during the next 12 months from the report date; - Stage 2: If it is identified a significant increase in the risk since the initial recognition, without materializing deterioration, the financial instrument will be framed within this stage. In this case, the value related to the provision for expected default losses reflects the estimate loss of the financial instrument residual life. For the evaluation of the significant increase of credit risk, quantitative indicators used in the regular management of credit risk will be used, as well as other qualitative variables, such as the indication of an operation not impairment if it is considered as refinancing operations or operations included in a special agreement; and - Stage 3: A financial instrument is registered in this stage when it shows effective deterioration signals as a result from one or more events already occurred and that materialize them in a loss. In this case, the value referred to the provision for losses reflected the expected losses by credit risk during the expected residual life of the financial instrument. ii. Impairment estimate methodology The expected loss measurement is made through the following factors: - Exposure at Default (EAD): is the amount of the transaction exposed to credit risk including the ratio of current outstanding balance exposure that could be provided at default. Developed models incorporate hypotheses considering possible modifications in the payment schedule. - Probability of Default (PD): is the likelihood that a counterparty will fail to meet its obligation to pay principal or interest. For the purposes of IFRS 9, this will consider both PD-12 months, which is the probability of the financial instrument entering default within the next 12 months, and also lifetime PD, which is the probability of the transaction entering into default between the reporting date and the transaction's residual maturity date. Future information of relevance is considered to be needed to estimate these parameters, according to the standard. - Loss Given Default (LGD): is the loss produced in the event of default. In other words, this reflects the percentage of exposure that could not be recovered in the event of a default. It depends mainly on the collateral, which is considered as credit risk mitigants associated with each financial asset, and the future cash flows that are expected to be recovered. According to the standard, forward-looking information must be taken into account in the estimation. - Discount rate: the rate applied to the future cash flows estimated during the expected life of the asset, and which is equal to the net present value of the financial instrument at its carrying value. In order to estimate the above parameters, the Bank has applied its experience in developing internal models for parameters calculation both for regulatory and management purposes. iii. Default definition The Bank considers that a financial asset is defaulted when: • it is likely that the debtor will not fully pay its credit obligations to the Bank; or • the debtor has significant credit obligations to the Bank overdue for more than 90 days as a general rule. Overdrafts are considered overdue if the client violates a recommended limit or has been granted a lower limit than the current outstanding amount. When assessing whether a debtor is in default, the Bank considers indicators: • qualitative - for example, violations of restrictive clauses (covenants); • quantitative - for example, status of past due and non-payment of another obligation of the same issuer to the Bank; and • based on information collected internally and obtained from external sources. iv. Allowance for losses The following tables present the reconciliations of the opening and closing balances of the provision for losses by category of financial instrument. The terms expected credit losses in 12 months, expected credit losses during the useful life and impairment losses are explained in the accounting practices note. The comparative values for 12/31/2017 represent a provision for loan losses and reflect the measurement basis in accordance with IAS 39. R$ millions Total Allowance for loan losses - Balance 12/31/2017 18,261,638 Allowance for guarantees - Balance 12/31/2017 312,373 IAS 39 Balance at 12/31/2017 18,574,011 Initial adoption effect of IFRS 9 (Note 1.2i) 2,823,564 IFRS 9 Balance at 01/01/2018 21,397,575 As of January 1, 2018, the Allowance for Loan Losses balance related to IFRS 9 segregated by stages was represented by: Stage 1 - 20%, Stage 2 - 15% and Stage 3 - 65%. There was no significant changes on the segregation for December 31, 2018 (note 9.c). 4) Financial assets and liabilities A. Classification of financial assets and liabilities at the initial adoption of IFRS 9 The table below shows the financial assets classified in accordance with IAS 39 and the new measurement categories in accordance with IFRS 9. IFRS 9 adoption first adoption effects on the Financial Assets and Liabilities (In R$ Millions) Original classification in accordance with IAS 39 Balance 12/31/2017 Reclassifications Remeasurement Balance New classification in accordance with IFRS 9 Financial Assets IAS 39 Loans and receivables 355,246,574 354,317,416 - 354,317,416 Measured at Amortized cost 492,429 5,197 497,626 Measured Mandatorily Measured At Fair Value Through Profit Or Loss 436,729 (7,179) 429,550 Measured at Fair value through other comprehensive income Available-for-sale 85,823,384 4,762,234 3,791 4,766,025 Measured at Amortized cost 79,954,513 - 79,954,513 Measured at Fair value through other comprehensive income 1,106,637 15,997 1,122,634 Measured at Fair value through profit and loss Held to maturity investments 10,214,454 10,214,454 - 10,214,454 Measured at Amortized cost Held for trading 86,271,097 86,271,097 - 86,271,097 Measured at Fair value through profit and loss Held For Trading Other financial assets measured at fair value through profit and loss 1,692,057 1,692,057 - 1,692,057 Measured at Fair value through profit and loss Total (1) 539,247,566 539,247,566 17,806 539,265,372 (1) Does not include Provision for Losses on contingent liabilities and commitments. IFRS 9 adoption first adoption effects on the Financial Assets and Liabilities (In R$ Millions) Original classification in accordance with IAS 39 Balance 12/31/2017 Reclassifications Remeasurement Balance New classification in accordance with IFRS 9 Financial liabilities IAS 39 Held for trading 49,322,546 - - 49,322,546 Measured At Fair Value Through Profit Or Loss Held For Trading Amortized cost 478,880,704 - - 478,880,704 Measured at Amortized cost Total 528,203,250 - - 528,203,250 Revenue from Customers Contracts • IFRS 15 - Revenue from Contracts with Customers: The standard was issued in May 2014 and applies to an annual reporting period beginning on January 1, 2018. This standard specifies how and when an entity will recognize revenue as well as requiring such entities to provide users of financial statements with more informative, relevant disclosures. The standard provides five basic principles to be applied to all contracts with customers, which are: i) identify the contract with the customer; ii) identify the implementing obligations under the contract; iii) determine the transaction price; iv) allocate the transaction price to performance obligations; and v) recognize revenue at the moment (or the extent to which) the entity carrying out an obligation of execution. • The IFRS 15's basic principle consists in the fact that an entity recognizes revenues to describe the transference of products or services rendered to clients using the value that reflects the consideration which the entity expects to receive in return of such products or services rendered. • After the analysis on the commissions/fees applied by the Banco Santander versus the IFRS 15 concepts, it was possible to conclude that there were no significant impact on the revenues current recognized, from the adoption of new norm on January 1, 2018. Annual Improvements of IFRS IAS 12 - Income Taxes - The issue relates to the presentation of income tax consequences of payments on, and issuing costs of, financial instruments that are classified as equity, whether an entity recognizes the relevant income tax consequences directly in equity or in profit or loss. IAS 23 - Borrowing Costs - Clarify whether an entity transfers specific borrowings to the general borrowings pool once the construction of a qualifying asset is complete. Standards and interpretations that will come into force after December 31, 2018 At the date of preparation of these consolidated financial statements, the following standards and interpretations which effectively will come into force after December 31, 2018 and had not yet been adopted by the Bank are: • IFRS 16 - Leasing contracts - Issued in January 2016 by IASB with the mandatory enforc |
Accounting policies and method
Accounting policies and method of measurement | 12 Months Ended |
Dec. 31, 2018 | |
Accounting policies and method of measurement [Abstract] | |
Accounting policies and method of measurement | 2. Accounting policies and method of measurement The accounting policies and method of measurement applied in preparing the consolidated financial statements were as follows: a) Foreign currency transactions The financial statements are presented in Brazilian Reais, the functional and reporting currency of Banco Santander and its subsidiaries. The assets and liabilities and foreign subsidiary are converted to Real as follows: - Assets and liabilities are translated at the exchange rate at the balance sheets date. - Revenues and expenses are translated at the monthly average exchange rates. - Gain and losses on translation of net investment are recorded in the statement of comprehensive income, in “exchange rate of investees located abroad”. b) Basis of consolidation i. Subsidiaries “Subsidiaries” are defined as entities over which the Bank has control. Control is based on whether the Bank has: i) power over the investee; ii) exposure, or rights, to variable returns from its involvement with the investee; and iii) the ability to use its power over the investee to affect the amount of the returns, as set forth in the law, the Bylaws or agreement. Consolidation of a subsidiary begins when the Bank obtains control over the subsidiary and ceases when the Bank loses control of the subsidiary. Specifically, income and expense of a subsidiary acquired or disposed during the year are included in the consolidated income statement and other comprehensive income from the date the Bank gains controls until the date when the Bank ceases to control the subsidiary. Profit or loss and each component of Other Comprehensive Income are attributed to the owners of the Bank and to the non-controlling interests even if the effect is attributed to non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Bank and to the non-controlling interest even if this generates a negative balance for non-controlling interests. All transactions, balances, income and expenses between the companies of the Santander Group are eliminated in the consolidated financial statements. Changes in the Santander Group's interest in a subsidiary that do not result in loss of control are registered as equity transactions. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Company. When the Bank loses control of a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. Amounts previously recognized in other comprehensive income in relation to the subsidiary are registered (i.e. reclassified to income statement or transferred directly to retained earnings) in the same manner as it would be required if the relevant assets or liabilities are disposed of. The fair value of any investment retained in the former subsidiary at the date when control got lost is considered as the fair value on initial recognition for subsequent accounting under IAS 39 Financial Instruments: Recognition and Measurement or, when applicable, the costs on initial recognition of an investment in an associate or jointly controlled entity. ii. Interests in joint ventures (jointly controlled entities) and associates Joint ventures mean interests in entities that are not subsidiaries but which are jointly controlled by two or more unrelated entities. This is evidenced by contractual arrangements whereby two or more entities (“ventures”) acquire interests in entities (jointly controlled entities) so that strategic financial and operating decisions affecting the joint venture require the unanimous consent of the ventures. Associates are entities over which the Bank is in a position to exercise significant influence (significant influence is the power to participate in the financial and operating decisions of the investee) but it does not control or has joint control over the investee. In the consolidated financial statements, interest in joint ventures and investments in associates are registered using the equity method, i.e. at the Bank's share of net assets of the investee, after taking into consideration the dividends received from capital reductions and other related transactions. Relevant information regarding companies registered under the equity method by the Bank is provided in note 11. iii. Business combinations, acquisitions and disposals A business combination is the combination of two or more separate entities or economic units into one single entity or group of entities and is registered in accordance with IFRS 3 - “Business Combinations”. Business combinations are carried out so that the Bank obtains control over an entity and are recognized for accounting purposes as follow: • The Bank measures the cost of the business combination, defined as the fair value of the assets offered, the liabilities incurred and the equity instruments issued, if any. • The fair values of the assets, liabilities and contingent liabilities of the acquired entity or business, including any intangible assets which might not have been recognized by the acquiree, are estimated at the acquisition date and recognized in the consolidated financial statement. • The excess of the acquisition cost over the fair value of the identifiable net assets acquired are recognized as goodwill (note 13). The excess of fair value of the identifiable net assets over the acquisition cost is an advantageous purchase gain and it is recorded as income on the date of the acquisition. The note 3 includes a description of the most significant transaction carried out in 2018, 2017 and 2016. iv. Investment Funds These include investment funds in which the Santander Group companies hold a substantial interest or the entirety of the interests and are therefore exposed to, or have rights, to variable returns and have the ability to affect those returns through power over the fund, in accordance with IFRS 10 - Consolidated Financial Statements and are therefore, consolidated in these financial statements. c) Definitions and classification of financial instruments i. Definitions “Financial instrument” is any contract that gives rise to a financial asset of one entity and, simultaneously, to a financial liability or financial interest of another entity. “Equity instrument” is any agreement that evidences a residual interest in the asset of the issuing entity after deducting all of its liabilities. “Financial derivative” is a financial instrument whose value changes in response to the change in an observable market variable (such as an interest rate, foreign exchange rate, financial instrument price, market index or credit rating), whose initial investment is zero or very small compared with other financial instruments with a similar response to changes in market factors, and which is settled at a future date. “Hybrid financial instruments” are contracts that simultaneously include a non-derivative host contract together with a derivative, known as an embedded derivative, that is not separately transferable and has the effect to make part of the cash flow of the hybrid contract vary similar to a stand-alone derivative. The following transactions are not treated for accounting purposes as financial instruments: • Investments in subsidiaries, jointly controlled entities and associates (note 3&11). • Rights and obligations under employee benefit plans (note 22). ii. Classification of financial assets for measurement purposes Financial assets are initially classified into the various categories used for management and measurement purposes, unless they have to be presented as Non-current assets held for sale or they relate to Cash, cash balances at Central Banks and other deposits on demand, Changes in the fair value of hedged items in portfolio hedges of interest rate risk (asset side), Hedging derivatives and Investments, which are reported separately. Financial assets are included for measurement purposes in one of the following categories: • Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading: this category includes the financial assets acquired to generate short-term profit resulting from the fluctuation of its prices and financial derivatives not classified as hedging instruments, whose primary intention of the Bank is to trade them frequently. • Financial Assets Measured At Fair Value Through Profit Or Loss: this category includes the financial assets that did not meet the pre-established criteria when evaluating the SPPI Test. • Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss: this category includes the financial assets that at the time of initial designation was made the fair value option. • Other Financial Assets At Fair Value Through Profit Or Loss (applicable for comparatives): this category includes hybrid financial assets not held for trading that are measured entirely at fair value and financial assets not held for trading that are included in this category in order to provide more relevant information, either because this eliminates or significantly reduces recognition or measurement inconsistencies (accounting mismatches) that would otherwise arise from measuring assets or liabilities or recognizing the gains or losses on them on different bases, or because a group of financial assets or financial assets and liabilities is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the group is provided on that basis to the Group's key management personnel. Financial instruments included in this category (and “Other financial liabilities at fair value through profit or loss”) are permanently subject to a consistent system of measurement, manage and control of all risks and returns that enables all the financial instruments involved to be identified and monitored and allows the effective reduction of risk checked. Financial assets may only be included in this category on the date they are acquired or originated. • Financial Assets Measured At Fair Value Through Other Comprehensive Income: are stated at fair value. This category does not include debt instruments classified as “Held-to-maturity investments” or “Financial assets at fair value through profit or loss”, and equity instruments issued by entities other than subsidiaries, associates and jointly controlled entities, provided that such instruments have not been classified as “Financial assets held for trading” or as “Other financial assets at fair value through profit or loss”. The results rising from changes in fair value are recognized at the Financial Assets Measured At Fair Value Through Other Comprehensive Income line in the Shareholders´ equity except for cumulative impairment losses which are recognized in statement of profit or loss. When the investment is sold or has evidences of decreases on the fair value due to impairment, the previously recognized result at the same Shareholders´ Equity line, mentioned above is reclassified to the statement of profit or loss. • Financial Assets Measured At Amortized Cost: this category includes financing granted to third parties, based on their nature, irrespective of the type of borrower and the form of financing, including finance lease transactions in which the consolidated entities act as lessors. The consolidated entities generally intend to hold the loans and credits granted by them until their final maturity and, therefore, they are presented in the consolidated balance sheets at their amortized cost (which includes the required adjustments to reflect estimated impairment losses). • Held-to-maturity investments(applicable for comparatives) : this category includes debt instruments traded in an active market, with fixed maturity and with fixed or determinable payments, for which the Bank has both the intention and proven ability to hold to maturity. These investments are measured at amortized cost less any impairment, with revenue recognized on an effective yield basis. iii. Classification of financial assets for presentation purposes Financial assets are classified by nature into the following headings in the consolidated financial statements: • Cash and balances with the Bacen: cash balances and balances receivable on demand relating to deposits with Bacen and credit institutions. • Financial Assets Measured At Amortized Cost: includes the debit balances of all credit and loans granted by the Bank, other than those represented by securities, as well as finance lease receivables and other debit balances of a financial nature in favor of the Bank, such as checks drawn on credit institutions, balances receivable from clearing houses and settlement agencies for transactions on the stock exchange and organized markets, bonds given in cash, capital calls, fees and commissions receivable for financial guarantees and debit balances arising from transactions not originating in banking transactions and services, such as the collection of rentals and similar items. • Loans and other amounts with credit institutions: credit of any nature in the name of financial institutions. • Loans and advances to clients: includes debit balances of all the remaining credit and loans granted by the Bank, including money market operations through centralized counterparties. • Debt instruments: bonds and other securities that represent a debt for their issuer, that generate an interest return, and that are in the form of certificates or book entries. • Equity instruments: Financial instruments issued by other entities, such as shares, which have the nature of equity instruments for the issuer, other than investments in subsidiaries, joint ventures or associates. Investment fund units are included in this item. • Trading derivatives: includes the fair value in favor of the Bank of derivatives which do not form part of hedge accounting. • Hedging derivatives: includes the fair value in favor of the Bank of derivatives designated as hedging instruments in hedge accounting. • Investments in associates and jointly controlled companies: includes the investments made in the share capital of associates and jointly controlled companies. iv. Classification of financial liabilities for measurement purposes Financial liabilities are classified for measurement purposes into one of the following categories: • Other Financial Assets At Fair Value Through Profit Or Loss: this category includes financial liabilities incurred for the purpose of generating a profit in the near term from fluctuations in their prices, financial derivatives not designated as hedging instruments, and financial liabilities arising from the outright sale of financial assets acquired under reverse repurchase agreements ("reverse repos") or borrowed (short positions). • Other Financial Assets At Fair Value Through Profit Or Loss: financial liabilities are included in this category when they provide more relevant information, either because this eliminates or significantly reduces recognition or measurement inconsistencies (accounting mismatches) that would otherwise arise from measuring assets or liabilities or recognizing the gains or losses on them on different bases, or because a group of financial liabilities or financial assets and liabilities is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the group is provided on that basis to the Group's key management personnel. • Financial liabilities at amortized cost: financial liabilities, irrespective of their instrumentation and maturity, not included in any of the above-mentioned categories which arise from the ordinary borrowing activities carried on by financial institutions. v. Classification of financial liabilities for presentation purposes Financial liabilities are classified by nature into the following items in the consolidated financial statements: • Deposits from Bacen: deposits of any nature received from Bacen. • Deposits from credit institutions: deposits of any nature, including credit received and money market operations in the name of credit institutions. • Client deposits: includes deposits of any nature such as demand deposits, saving deposits and time deposits including money market operation received from client. • Marketable debt securities: includes the amount of bonds and other debt represented by marketable securities, other than subordinated liabilities. • Trading derivatives: includes the fair value, with a negative balance for the Bank, of derivatives which do not form part of hedge accounting. • Short positions: includes the amount of financial liabilities arising from the outright sale of financial assets purchased under reverse repurchase agreements or borrowed. • Subordinated liabilities: amount of financing received which, for the purposes of payment priority, ranks behind ordinary debt. This category also includes the financial instruments issued by the Bank which, although equity for legal purposes, do not meet the requirements for classification as equity. • Other financial liabilities: includes the amount of payment obligations having the nature of financial liabilities not included in other items, and liabilities under financial guarantee contracts, unless they have been classified as non-performing. • Hedging derivatives: includes the fair value of the Bank's liability in respect of derivatives, including embedded derivatives separated from hybrid financial instruments, designated as hedging instruments in hedge accounting. • Equity instruments: financial instruments issued by other entities, such as shares, with the nature of equity instruments for the issuer, except investments in subsidiaries, jointly controlled entities or associates. The shares of non-consolidated investment funds are included in this item. d) Funding, debt notes issued and other liabilities Funding debt rates and other liabilities Instruments are recognized initially at fair value, considered primarily as the transaction price. They are subsequently measured at amortized cost and its expenses are recognized as a financial cost. Among the liabilities initial recognition methods, it is important to emphasize those compound financial instruments which are classified as such due to the fact that the instruments contain both, a debt instrument (liability) and an embedded equity component (derivative). The recognition of a compound instrument consists of a combination of (i) a main instrument, which is recognized as an entity's genuine liability (debt) and (ii) an equity component (derivative convertible into ordinary share). The issue of "Notes" must be registered in specific heading liabilities and updated according to the agreed rates and adjusted by the effect of exchange rate variations, when denominated in foreign currency. All remuneration related to these instruments, such as interest and Exchange variation (difference between the functional currency and the currency in which the instrument was named) shall be registered as expenses for the period, according to the accrual basis. The relevant details of these issued instruments are described in note 20. e) Measurement of financial assets and liabilities and recognition of fair value changes In general, financial assets and liabilities are initially recognized at fair value which, in the absence of evidence to the contrary, is deemed to be the transaction price. Financial instruments not measured at fair value through profit or loss, are adjusted by the transaction costs. Financial assets and liabilities are subsequently measured at each period-end as follows: i. Measurement of financial assets Financial assets are measured at fair value, without deduction of estimated costs of transaction that may be incurred on their disposal, except for loans and receivables, held-to-maturity investments, equity instruments whose fair value cannot be determined in a sufficiently objective manner and financial derivatives that have as equity instruments subject and are settled by delivery of those instruments. The fair value of a financial instrument on a given date is taken to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The most objective and common reference for the fair value of a financial instrument is the price that would be paid for it on an active, transparent and deep market (quoted price or market price). If there is no market price for a given financial instrument, its fair value is estimated on the basis of valuation techniques commonly used by the international financial community, according to the specific features of the instrument to be measured and, particularly, the various types of risk associated with it. All derivatives are recognized in the balance sheets at fair value from the trade date. If the fair value is positive, they are recognized as assets and if the fair value is negative, they are recognized as liabilities. The changes in the fair value of derivatives from the trade date are recognized in “Gains (losses) on financial assets and liabilities” in the consolidated income statement. Specifically, the fair value of standard financial derivatives included in the portfolios of financial assets or liabilities held for trading is deemed to be their daily quoted price and if, for exceptional reasons, the quoted price cannot be determined on a given date, these financial derivatives are measured using methods similar to those used to measure over the counter “OTC” derivatives. The fair value of OTC derivatives is taken to be the sum of the future cash flows arising from the instrument, discounted to present value at the date of measurement (“present value” or “theoretical close”) using valuation techniques commonly used by the financial markets: “net present value” (NPV), option pricing models and other methods. “Financial Assets Measured At Amortized Cost” and “Held-to-maturity investments” are measured at amortized cost using the effective interest method. “Amortized cost” is the acquisition cost of a financial asset or liability plus or minus, as appropriate, the principal repayments and the cumulative amortization (taken to the income statement) between the difference of the initial cost and the maturity amount. In the case of financial assets, amortized cost furthermore includes any reductions for impairment or uncollectibility. In the case of loans and receivables hedged in fair value hedges, the changes in the fair value of these assets related to the risk or risks being hedged are recognized. The “effective interest rate” is the discount rate that exactly matches the initial amount of a financial instrument to all its estimated cash flows of all kinds over its remaining life. For fixed rate financial instruments, the effective interest rate coincides with the contractual interest rate established on the acquisition date plus, where applicable, the fees and transaction costs that, because of their nature, form part of their financial return. In the case of floating rate financial instruments, the effective interest rate coincides with the rate of return prevailing in all connections until the next benchmark interest reset date. Equity instruments whose fair value cannot be determined in a sufficiently objective manner are measured at acquisition cost adjusted, where appropriate, by any related impairment loss. The amounts at which the financial assets are recognized represent, in all material respects, the Bank's maximum exposure to credit risk at each reporting date. Also, the Bank has received collateral and other credit enhancements to mitigate its exposure to credit risk, which consist mainly of mortgage guarantees, cash collateral, equity instruments and personal security, assets leased out under leasing and renting agreements, assets acquired under repurchase agreements and securities loans and derivatives. ii. Measurement of financial liabilities In general, financial liabilities are measured at amortized cost, as defined above, except for those included under “Financial Assets Measured At Fair Value Through Profit Or Loss” and “Other financial liabilities at fair value through profit or loss” and financial liabilities designated as hedge items (or hedging instruments) in fair value hedges, which are measured at fair value. iii. Recognition of fair value changes As a general rule, changes in the carrying amount of financial assets and liabilities are recognized in the consolidated income statement, distinguishing between those arising from the accrual of interest and similar items -which are recognized under “Interest and similar income” or “Interest expense and similar charges”, as appropriate - and those arising for other reasons, which are recognized at their net amount in the heading “Gains (losses) on financial assets and liabilities (net)”. Adjustments due to changes in fair value arising from Available-for-sale financial assets are recognized temporarily in equity in then heading “Other Comprehensive Income”. Items charged or credited to this account remain in the Bank's consolidated equity until the related assets are written-off, whereupon they are charged to the consolidated income statement. iv. Hedging transactions The consolidated entities use financial derivatives for the following purposes: i) to provide these instruments to clients who request them in the management of their market and credit risks; ii) to use these derivatives in the management of the risks of the Bank entities' own positions and assets and liabilities (“hedging derivatives”); and iii) to obtain gains from changes in the prices of these derivatives (“financial derivatives”). Financial derivatives that do not qualify for hedge accounting are treated for accounting purposes as trading derivatives. Financial derivatives that do not qualify for hedge accounting are treated for accounting purposes as trading derivatives. A derivative qualifies for hedge accounting if all the following conditions are met: 1 The derivative hedges one of the following three types of exposure: a. Changes in the fair value of assets and liabilities due to fluctuations, among other, in the interest rate and/or exchange rate to which the position or balance to be hedged is subject (“fair value hedge”); b. Changes in the estimated cash flows arising from financial assets and liabilities, commitments and highly probable forecast transactions (“cash flow hedge”); c. The net investment in a foreign operation (hedge of a net investment in a foreign operation). 2 It is effective in offsetting exposure inherent in the hedged item or position throughout the expected term of the hedge, which means that: a. At the date of arrangement the hedge is expected, under normal conditions, to be highly effective (prospective effectiveness). b. There is sufficient evidence that the hedge was actually effective during the whole life of the hedged item or position (retrospective effectiveness). 3 There must be adequate documentation evidencing the specific designation of the financial derivative to hedge certain balances or transactions and how this effective hedge was expected to be achieved and measured, provided that this is consistent with the Bank's management of own risks. The changes in value of financial instruments qualifying for hedge accounting are recognized as follows: a. In fair value hedges, the gains or losses arising on both the hedging instruments and the hedged items (attributable to the type of risk being hedged) are recognized directly in the consolidated income statement. b. In cash flow hedges, the effective portion of the change in value of the hedging instrument is recognized temporarily in equity under “Other comprehensive Income - Cash flow hedges” until the forecast transactions occur, when it is recognized in the consolidated income statement, unless, if the forecast transactions result in the recognition of non-financial assets or liabilities, it is included in the cost of the non-financial asset or liability. The ineffective portion of the change in value of hedging derivatives is recognized directly in the consolidated income statement. c. The ineffective portion of the gains and losses on the hedging instruments of cash flow hedges and hedges of a net investment in a foreign operation are recognized directly under “Gains (losses) on financial assets and liabilities (net)” in the consolidated income statement. If a derivative designated as a hedge instrument no longer meets the requirements described above due to expiration, ineffectiveness or for any other reason, the derivative is classified as a derivative measured at fair value through profit or loss. When fair value hedge accounting is discontinued (repealed, expired, sold our no longer meet hedge accounting criteria) the adjustments previously recognized on the hedged item are transferred to profit or loss at the effective interest rate re-calculated at the date of hedge discontinuation. The adjustments must be fully amortized at maturity. When cash flow hedges are discontinued, any cumulative gain or loss on the hedging instrument recognized in equity in the heading "Other comprehensive Income” (from the period when the hedge was effective) remains recognized in equity until the forecast transaction occurs at which time it is recognized in profit or loss, unless the transaction is no longer expected to occur, in which case any cumulative gain or loss is recognized immediately in profit or loss. For the accounting and disclosure of the hedge accounting structures as of December 31, 2018, the bank used the faculty of IFRS 9, to maintain the practices determined by IAS 39. f) Settlement of financial assets and liabilities The accounting treatment of transfers of financial assets depends on the extent to which the risks and rewards associated with the transferred assets are transferred to third parties: 1 If the Bank transfers substantially all the risks and rewards to third parties-unconditional sale of financial assets, sale of financial assets under an agreement to repurchase them at their fair value at the date of repurchase, sale of financial assets with a purchased call option or written put option that is deeply out of the money, securitization of assets in which the transferor does not retain a subordinated debt or grant any credit enhancement to the new holders, and other similar cases, the transferred financial asset is derecognized and any rights or obligations retained or created in the transfer are recognized simultaneously. 2 If the Bank retains substantially all the risks and rewards associated with the transferred financial asset -sale of financial assets under an agreement to repurchase them at a fixed price or at the sale price plus interest, a securities lending agreement in which the borrower undertakes to return the same or similar assets, and other similar cases, the transferred financial asset is not derecognized and continues to be measured by the same criteria as those used before the transfer. However, the following items are recognized: a. An associated financial liability, for an amount equal to the consideration received; this liability is subsequently measured at amortized cost. b. The income from the transferred financial asset not derecognized and any expense incurred on the new financial liability. 3 If the Bank neither transfers or retains substantially all the risks and rewards associated with the transferred financial asset - sale of financial assets with a purchased call option or written put option that is not deeply in or out of the money, securitization of assets in which the transferor retains a subordinated debt or other type of credit enhancement for a portion of the transferred asset, and other similar cases, the following distinction is made: a. If the transferor does not retain control of the transferred financial asset, the asset is derecognized and any rights or obligations retained or created in the transfer are recognized. b. If the transferor retains control, it continues to recognize the transferred financial asset for an amount equal to its exposure to changes in value and recogn |
Basis of consolidation
Basis of consolidation | 12 Months Ended |
Dec. 31, 2018 | |
Basis of consolidation [Abstract] | |
Basis of consolidation | 3. Basis of consolidation Below are highlighted the controlled entities and investment funds included in the consolidated financial statements of Banco Santander. Similar information regarding companies accounted by the equity method by the Bank is provided in Note 11. Directly and Indirectly controlled by Banco Santander (Brasil) S.A. Participation % Activity Consolidated Banco Bandepe S.A. (1) Bank 100.00% Santander Leasing S.A. Arrendamento Mercantil (Santander Leasing) Leasing - 99.99% Aymoré Crédito, Financiamento e Investimento S.A. (Aymoré CFI) Financial - 100.00% Santander Brasil Administradora de Consórcio Ltda. (Santander Brasil Consórcio) Buying club - 100.00% Atual Serviços de Recuperação de Créditos e Meios Digitais S.A. (formerly named as Atual Companhia Securitizadora de Créditos Financeiros) (Atual) (2) Credit recovery services - 100.00% Santander Corretora de Câmbio e Valores Mobiliários S.A. (Santander CCVM) Broker - 100.00% Santander Corretora de Seguros, Investimentos e Serviços S.A. (Santander Corretora de Seguros) (formerly named as Santander Participações S.A.) (3)(4)(5) Other activities - 100.00% Getnet Adquirência e Serviços para Meios de Pagamento S.A. (Getnet) Payment Institution - 88.50% Sancap Investimentos e Participações S.A. (Sancap) Holding - 100.00% Santander Brasil Establecimiento Financiero de Crédito S.A. (EFC) Financial - 100.00% Santander Holding Imobiliária S.A. (formerly named Webcasas S.A.) (10) Holding - 100.00% Santander Brasil Tecnologia S.A. (formerly named Produban Serviços de Informática S.A.) (21) Technology 100.00% Rojo Entretenimento S.A. (20) Other Activities 94.60% BEN Benefícios e Serviços S.A (9) Other Activities - 100.00% Esfera Fidelidade S.A. (22) Other Activities - 100.00% Return Capital Serviços de Recuperação de Créditos e Meios Digitais S.A. (formerly named Ipanema Empreendimentos e Participações S.A.) (11) (12) Credit Management and Recovery Management 70.00% Return Gestão de Recursos S.A. (formerly named Gestora de Investimentos Ipanema S.A.) (13) Resource Manager - 100.00% Auttar HUT Processamento de Dados Ltda. (Auttar HUT) Other Activities - 100.00% Integry Tecnologia e Serviços A.H.U Ltda. (Integry Tecnologia) Other Activities - 100.00% Toque Fale Serviços de Telemarketing Ltda. (Toque Fale) Other Activities - 100.00% Controlled by Sancap Santander Capitalização S.A. (Santander Capitalização) Savings and annuities - 100.00% Evidence Previdência S.A. Social Securities - 100.00% Controlled by Aymoré CFI Super Pagamentos e Administração de Meios Eletrônicos Ltda. (Super Pagamentos) (14) (8) Payment Institution - 100.00% Banco Olé Bonsucesso Consignado S.A. (Olé Consignado) (15) Bank - 60.00% Banco PSA Finance Brasil S.A. Bank - 50.00% Controlled by Olé Consignado BPV Promotora de Vendas e Cobrança Ltda. Other Activities - 100.00% Olé Tecnologia Ltda. Other Activities - 100.00% Controlled by Santander Leasing Si Distribuidora de Títulos e Valores Mobiliários S.A. (formerly named Santander Finance Arrendamento Mercantil) (6) (7) Leasing 100.00% Consolidated Investment Funds Activity Participation % Santander FIC FI Contract I Referenciado DI Investment Fund (a) Santander Fundo de Investimento Unix Multimercado Crédito Privado Investment Fund (a) Santander Fundo de Investimento Diamantina Multimercado Crédito Privado de Investimento no Exterior Investment Fund (a) Santander Fundo de Investimento Amazonas Multimercado Crédito Privado de Investimento no Exterior Investment Fund (a) Santander Fundo de Investimento SBAC Referenciado DI Crédito Privado Investment Fund (a) Santander Fundo de Investimento Guarujá Multimercado Crédito Privado de Investimento no Exterior Investment Fund (a) Santander Fundo de Investimento Financial Curto Prazo Investment Fund (a) Santander Fundo de Investimento Capitalization Renda Fixa Investment Fund (a) Santander Paraty QIF PLC (16) Investment Fund (a) Santander FI Hedge Strategies Fund (Santander FI Hedge Strategies) (16) Investment Fund (a) Prime 16 - Fundo de Investimento Imobiliário (formerly named BRL V - Fundo de Investimento Imobiliário - FII) (17) Real Estate Investment Fund (a) Fundo de Investimento em Direitos Creditórios Multisegmentos NPL Ipanema VI - Não Padronizado (Fundo Investimento Ipanema NPL VI) (18) Investment Fund (a) Fundo de Investimento em Direitos Creditórios Multisegmentos NPL Ipanema VI - Não Padronizado (Fundo Investimento Ipanema NPL V) (19) Investment Fund (a) Santander Hermes Multimercado Crédito Privado Infraestrutura Fundo de Investimentos (23) Investment Fund (a) (a) Company over which the Bank is exposed, or has rights, to variable returns and have the ability to affect those returns through the power of decision, in accordance with IFRS 10 - Consolidated Financial Statements. Banco Santander and its subsidiaries holds 100% of the shares of these investment funds. (1) In the EGM (Extraordinary general meeting) held on December 7, 2018, Banco Bandepe S.A. had its capital stock increased in the amount of R$2,000,000, passing from R$2,787,689 to R$4,787,689, divided into 3,589,334 (three million, five hundred and eighty-nine thousand and three hundred and thirty-four) common nominative shares without par value. The shareholder Banco Santander subscribed all the new issued shares and paid-in the shares corresponding to 50% of the capital increase, being that the shares subscribed and pending of payment will be paid-in pursuant to the conditions and term provided in law. (2) On March 23, 2018, Atual Companhia Securitizadora de Créditos Financeiros had its name changed to Atual Serviços de Recuperação de Créditos e Meios Digitais S.A., and its share capital increased in R$150,000 passing the share capital to the amount of R$270,000, divided into 265,419,392 (two hundred and sixty-five million, four hundred and nineteen thousand and three hundred and ninety-two) ordinary common shares without par value, entirely held by Banco Santander. (3) In the ESM (Extraordinary Shareholders' Meeting) held on May 8, 2017, was approved the name change of Santander Participações S.A. to Santander Corretora de Seguros, Investimentos e Serviços S.A. In the same ESM, was approved the amendment to the company's corporate purpose. At the ESM held on August 31, 2017, a capital increase of R$17,652 was approved, in view of the version of the net assets of Santander Microcrédito, based on its book value at the date - based on June 30, 2017, entirely destined to the share capital account of Santander Corretora de Seguros, transferring the capital stock from the current R$1,700,000 to R$1,717,652, through the issuance of a total of 51,776 (fifty-one thousand, seven hundred and seventy-six) registered common shares with no par value that were subscribed and paid by Banco Santander on that date, the issue price was set at R$340.93 per share, calculated based on its book value, on the base date of August 31, 2017. On August 31, 2017, the merger and the Private Instrument of Protocol and Justification of Santander Microcrédito by Santander Corretora de Seguros were approved, so that Santander Corretora de Seguros received through their book value, based on the balance sheet drawn up on June 30, 2017, all of the assets, rights and obligations of Santander Microcrédito. With the extinction of Santander Microcrédito the Santander Corretora de Seguros became its successor in all its rights and obligations. (4) At the ESM (Extraordinary shareholder meeting) held on September 29, 2017, Santander Corretora de Seguros' shareholders' equity increase was approved in the amount of R$12,900, based on the net assets of Santander Brasil Advisory calculated based on its book value at base date of August 31, 2017, of which the amount of R$8,463 was allocated to the share capital account of Santander Corretora de Seguros, increasing the current capital from R$1,717,652 to R$1,726,115, by issuing a total of 37,554 (thirty-seven thousand, five hundred and fifty-four) nominative common shares with no par value that were subscribed and paid-in on that date by Banco Santander, the issue price was set at R$343.50 per share, calculated based on their respective carrying amounts, on the base date of August 31, 2017. On September 29, 2017, the merger and the Private Instrument of Protocol and Justification of Santander Brasil Advisory by Santander Corretora de On September 29, 2017, the merger and the Private Instrument of Protocol and Justification of Santander Brasil Advisory by Santander Corretora de Seguros were approved, so that Santander Corretora de Seguros received through their book value, based on the balance sheet drawn up on August 31, 2017, all of the assets, rights and obligations of Santander Brasil Advisory. With the extinction of Santander Brasil Advisory the Santander Corretora de Seguros became its successor in all its rights and obligations. (5) On November 17, 2017, was formalized the acquisition by Banco Santander of the participation by Santusa Holding, S.L. (equivalent to 39.35%) in the share capital of Santander Serviços. Thus, Banco Santander becomes the holder of 99.99% of the shares of Santander Serviços. The amount of R$298,978 relating to goodwill was recorded. On November 30, 2017, Santander Serviços was merged into Santander Corretora de Seguros and on December 22, 2017, Santander Corretora de Seguros, Cia. de Ferro Ligas da Bahia - Ferbasa SA and Brazil Wind S.A. executed agreement for the sale of 100% of the shares issued by BW Guirapá I S.A. held by Santander Corretora de Seguros and Brazil Wind to Ferbasa. The basic price of the total sale was R$414,000, and an additional amount of up to R$35,000 may be paid if future targets stipulated in the Contract are met. This investment was written off and, consequently, the assets and liabilities of BW Guirapa I and its subsidiaries are no longer consolidated in the Conglomerate Balance Sheet as of January 1, 2018. On April 2, 2018, the transaction was concluded (Note 10). (6) In the ESM held on December 17, 2018, was approved the change of corporate name of SI Distribuidora de Títulos e Valores Mobiliários S.A. to PI Distribuidora de Títulos e Valores Mobiliários S.A. On January 22, 2019, Bacen approved the company's change of corporate name. (7) In the ESM held on May 3, 2018, the shareholders of Santander Finance Arrendamento Mercantil S.A. approved its conversion into a distributor of bonds and securities, and change of its corporate name to SI Distribuidora de Títulos e Valores Mobiliários S.A. The conversion process of approved by Bacen on November 21, 2018. (8) In the ESM held on July 21, 2017, was approved the capital increase of Super Pagamentos in the amount of R$20,000, passing the capital stock from R$49,451 to R$69,451, through issuance of 50,724,086 (fifty million, seven hundred and twenty-four thousand and eighty-six) new nominative common shares without par value, by the issuance price of approximately R$394,29 per one thousand shares, based on the accounting net-worth value of Super Pagamento as of June 30, 2017. The issued shares were fully subscribed and paid-in by Aymoré CFI. (9) BEN Benefícios e Serviços S.A. was incorporated on June 11, 2018. (10) Through the Private Stock Purchase and Sale Agreement held on October 26, 2017, Santander Serviços sold its interest held in Webcasas S.A. to Banco Santander. The full sale occurred at book value. In ESM held on November 1, 2017, was approved the change of name of Webcasas S.A. to Santander Holding Imobiliária S.A. and the amendment of its corporate purpose to encompass the new activities to be developed. (11) Investment purchased in October 16, 2017. (12) On July 12, 2018, the company Ipanema Empreendimentos e Participações S.A. had its name changed to Return Capital Serviços de Recuperação de Créditos S.A.. (13) On July 12, 2018, the company Gestora de Investimentos Ipanema S.A. had its name changed to Return Gestão de Recursos S.A.. (14) On May, 2017, it was approved by Bacen the authorization process for the Company operates as a payment institution. (15) All the shareholders canceled the ESM held on December 19, 2017, which approved the capital increase of Olé Consignado in the amount of R$120,000. In the ESM held on February 9, 2018, the shareholders fully representing the capital stock of Olé Consignado approved the capital increase in the amount of R$ 120,000, passing the share capital from R$ 400,000 to R$ 520,000, through issuance of 57,089,392 (fifty seven million, eighty-nine thousand, three hundred and ninety two) nominative common shares, without par value, fully subscribed and paid-in by the shareholders, on the ESM date, proportionally to their respective equity interest. The capital increase was approved by Bacen on March 15, 2018. (16) 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. (17) The Banco Santander figured as lender of certain delayed debts (loans) which had real state as guarantees. The process of credit recovery consists in converte into capital contributions by the Real Estate Fund in conjunction concomitant transfer of the same shares to Banco Santander through the process of payment in kind of the above credit operations payments. (18) This investment fund was formed and started to be consolidated in September of 2017. It refers to a structure where the Bank has sold certain loans agreements which were already written-off (agreements matured over 360 days) and transferred to this fund. Atual Serviços de Recuperação de Créditos e Meios Digitais S.A. (Atual), company controlled by the Banco Santander, holds 100% of the fund´s quotas. (19) This fund was consolidated in October 2017 and the majority of its quotas indirectly held by Atual. (20) Investment transferred from non-current assets held for sale accounting item (Note 10) on June 2018. (21) In the ESM held on March 19, 2018, was approved the capital increase of Santander Brasil Tecnologia S.A. in the amount of R$4,000, through incorporation of the reserve for dividends' equalization, without changing the number of shares, passing the capital stock from the amount of R$91,048 to R$95,048, represented by 45,371,225 (forty-five million, three hundred and seventy-one thousand and two hundred and twenty-five) nominative common shares without par value. (22) On August 14, 2018, Esfera Fidelidade S.A. was incorporated, with its equity interest fully held by Banco Santander. The company started its operations on November 2018. (23) This fund started being consolidated on November 2018. Several social movements were implemented in order to reorganize the operations and activities of entities according to the business plan of the Conglomerate Santander, those movements have not affected the segment reporting once the companies are related to the commercial Banking segment and did not lead to a creation of a new segment. a) Acquisition of residual equity interest in Getnet S.A. At December 19, 2018, Banco Santander and the minority shareholders of Getnet S.A. entered into an amendment to the Stock Sale and Purchase Agreement and Other Covenants of Getnet S.A., in which Banco Santander committed to purchase all of the shares owned by the minority shareholders, corresponding to 11.5% of the Getnet S.A. stock capital, by the amount of R$1,431 (one billion and four hundred and thirty one million Brazilian Reais). This acquisition was authorized by BACEN on February 18 and closed on February 25, 2019, becoming Banco Santander the holder of 100% of the shares of Getnet S.A. b) Formation of Esfera Fidelidade S.A. On August 14, 2018, Esfera Fidelidade was incorporated, with equity fully owned by Banco Santander. Esfera Fidelidade will act in the development and management of customer loyalty programs. On November 26, 2018, Esfera Fidelidade had its capital stock increased in the amount of R$10,000, amounting the full share capital of R$10,000, divided into 10,001,000 (ten million and one thousand) nominative common shares without par value, entirely held by Banco Santander. The company started its operation in November 2018. c) Investment in Loop Gestão de Pátios S.A. On June 26, 2018, Webmotors S.A., company with 70% interest indirectly owned by Banco Santander, signed an investment agreement with Allpark Empreendimentos, Participações e Serviços S.A. and Celta LA Participações S.A., in order to acquire an equity interest corresponding to 51% of the capital stock of Loop Gestão de Pátios S.A., through capital increase and issuance of new shares of Loop to be fully subscribed and paid-in by Webmotors. Loop operates in the segment of commercialization and physical and virtual auction of motor vehicles. On September 25, 2018, the transaction was completed with increase of the capital stock, in the amount of R$23,900, through issuance of shares representing 51% of equity interest in Loop, which were fully subscribed and paid-in by Webmotors. d) Formation of BEN Benefícios e Serviços S.A. On June 11, 2018, BEN Benefícios, with equity fully owned by Banco Santander, was incorporated, to act in the supply and administration of meal, food, transportation, cultural and similar vouchers, via printed or electronic and magnetic cards . In the EGM held on August 1, 2018, BEN Benefícios had its capital increased in R$ 45,000, passing the capital stock to the amount of R$ 45,001, divided into 45,001,000 (forty-five million and one hundred thousand) registered common shares without par value, fully owned by Banco Santander. Banco Santander estimates that the company's operations will begin at the first quarter of 2019. e) Acquisition of Isban Brasil S.A. and Produban Serviços de Informática S.A. Banco Santander purchased, on February 19, 2018, respectively, the totality of shares of Isban Brasil, formerly held by Ingeniería de Software Bancário, S.L., and of Produban Serviços de Informática, formerly held by Produban Servicios Informáticos Generales, S.L., for the amount of R$61,078 and R$42,731, respectively. The parties involved in the transaction had Banco Santander, S.A. (Santander Spain) as common indirect controller, being certain that such operations were accomplished under market conditions. At the EGM held on February 19, 2018, was approved the capital increase of Isban Brasil in the amount of R$33,000, through the issuance of 11,783,900 (eleven million, seven hundred and eighty-three thousand and nine hundred) shares, without par value, entirely subscribed and paid in by Banco Santander. On February 28, 2018, the company Isban Brasil was merged into Produban Serviços de Informática S.A. and on the same date, Produban Serviços de Informática had its corporate name changed to Santander Brasil Tecnologia S.A. Additionally, on February 28, 2018, Produban Servicios Informáticos Generales, S.L. (currently named Santander Global Technology, S.L.) approved the merger of the spin-off share of Produban Serviços de Informática into Produban Brasil Tecnologia e Serviços de Informática Ltda. (currently named Santander Global Technology Brasil Ltda.). f) Sale of equity interest in BW Guirapá I S.A. On December 22, 2017, Santander Corretora de Seguros, Cia. de Ferro Ligas da Bahia - Ferbasa SA and Brazil Wind S.A. executed agreement for the sale of 100% of the shares issued by BW Guirapá I S.A. held by Santander Corretora de Seguros and Brazil Wind to Ferbasa. The basic price of the total sale was R$414,000, and an additional amount of up to R$35,000 may be paid if future targets stipulated in the Contract are met. This investment was written-off and, as consequently, the assets and liabilities of BW Guirapá I and its subsidiaries are no longer consolidated in the Conglomerate Balance Sheet as of January 1, 2018. On April 2, 2018, the transaction was concluded (Notes 15 and 33). g) Formation of Santander Auto S.A. On December 20, 2017, Banco Santander and HDI Seguros S.A. (HDI Seguros), executed documents to form a partnership for the issuance, offering and sale of auto insurance, in a 100% digital way, through creation of a new insurance company - Santander Auto, to be held 50% by Sancap, a company controlled by Banco Santander, and 50% by HDI Seguros. On February 2, 2018 the partnership was approved by the Administrative Council of Economic Defense (Conselho Administrativo de Defesa Econômica - CADE), on April, 30, 2018, was approved by the Brazilian Central Bank and, on May, 15, 2018, SUSEP's prior approval was obtained. On October 9, 2018, through transformation of the corporate vehicle L.G.J.S.P.E. Investments and Participations S.A., Sancap and HDI Seguros formed Santander Auto S.A., with capital of R$15,000. On January 9, 2019, Susep granted to Santander Auto the authorization to operate insurance throughout national territory. h) Formation of Gestora de Inteligência de Crédito S.A. On April 14, 2017, the definitive documents necessary for the creation of a new credit bureau, Gestora de Inteligência de Crédito, were signed by the stockholders, whose control will be shared among the stockholders who will hold 20% of the its share capital each. In the EGM held on October 5, 2017, the capital increase of Gestora de Crédito was approved in the total amount of R$285,205, so that the capital stock increased from R$65,823 to R$351,028. The Company will develop a database with the objective of aggregating, reconciling and processing registration and credit information of individuals and legal entities, in accordance with the applicable standards, providing a significant improvement in the processes of granting, pricing and directing credit lines. The Bank estimates that the Company will be fully operational in 2019. i) Formation of Banco Hyundai Capital Brasil S.A. On April 28, 2016, Aymoré CFI and Banco Santander executed with Hyundai Capital Services, Inc. (Hyundai Capital) the necessary documents for the formation of Banco Hyundai and an insurance brokerage company to provide, respectively, auto finance and insurance brokerage services and products to clients and Hyundai dealerships in Brazil. Banco Hyundai shall have an equity interest of 50% held by Aymoré CFI and 50% held Hyundai Capital. On April 11, 2018, the parties incorporated, with an equity interest of 50% held by Aymoré CFI and 50% held by Hyundai Capital, a non-operational entity named BHJV Assessoria e Consultoria em Gestão Empresarial Ltda. On May 8, 2018, Aymoré CFI and Hyundai Capital took resolution on the conversion of BHJV Assessoria into the non-operational joint-stock corporation named Banco Hyundai Capital Brasil S.A., as well as the capital stock increase in R$99,995, passing to the amount of R$100,000, divided into 100,000,000 (one hundred million) nominative common shares without par value. On December 13, 2018, Banco Hyundai Capital Brasil S.A. incorporation procedure was finalized and its operation as a financial institution is subject to the issuance of an authorization to operate by Bacen. Aymoré CFI holds the operational control of such entity. On February 21, 2019, the Brazilian Central Bank granted to Banco Hyundai Capital Brasil S.A. the authorization to operate as a banking entity. Expectation is that Banco Hyundai will be able to operate within the first semester of 2019 (Note 11). j) Creation of PI Distribuidora de Títulos e Valores Mobiliários S.A. On May 3, 2018, Santander Finance Arrendamento Mercantil S.A., an indirectly controlled subsidiary of Banco Santander, was converted into a distribution company of bonds and securities and had its corporate name changed to SI Distribuidora de Títulos e Valores Mobiliários S.A. The conversion process of approved by Bacen on November 21, 2018. On December 17, 2018, SI Distribuidora de Títulos e Valores Mobiliários S.A. had its corporate name changed to PI Distribuidora de Títulos e Valores Mobiliários S.A., being the corporate name change process approved by Bacen on January 22, 2019. Banco Santander expects to have the company fully operational within the first quarter of 2019. k) Investment Agreement between Banco Santander and current Olé Consignado Olé Consignado has become the exclusive vehicle of Banco Bonsucesso and its affiliates for the payroll credit supply in Brazil and should consolidate existing payroll loans portfolio in Banco Santander and Olé Consignado, in accordance with the terms of the agreement. Banco Santander will continue to originate payroll loans through their own channels independently. In the operation context, it was granted between institutions a put option (right of Olé Consignado to sell) and purchase (right of Banco Santander to acquire), relating to the shares held by Banco Bonsucesso, equivalent to 40% of the share capital of this company. According to IAS 32, on the acquisition date, a financial liability was recognized, the balance of which on December 31, 2018 of R$519 million (2017 - 484 and 2016 - R$307 million) by the commitment made in relation to the put option, accounted in Shareholders' Equity, the amount of R$67 million, non-controlling interests, the amount of R$346 million. In 2018, a tax credit of R$85 million was recognized and an expense in the consolidated statements of income, in the amount of R$21 million. At the ESM held on March 3, 2016 the change of the corporate name of Banco Bonsucesso Consignado S.A. to Banco Olé Bonsucesso Consignado S.A. was approved, the process was approved by Bacen on June 1, 2016. The exercise period of the Options is defined between two periods, the first period from February 10, 2019 to February 10, 2021 or, if the exercise does not occur in the first period, the second period will be from February 10, 2023 to February 10, 2025. |
Cash and balances with the Braz
Cash and balances with the Brazilian Central Bank | 12 Months Ended |
Dec. 31, 2018 | |
Cash and balances with the Brazilian Central Bank [Abstract] | |
Cash and balances with the Brazilian Central Bank | 4. Cash and balances with the Brazilian Central Bank Thousand of reais 2018 2017 2016 Cash and cash equivalents 19,463,587 4,661,348 3,316,800 of which: Cash 4,235,096 4,661,348 3,316,800 Cash and Foreign currency application abroad 15,228,491 15,980,973 11,366,935 Central Bank compulsory deposits (2) (3) 12,252,758 13,482,432 11,600,834 Total 31,716,345 34,124,753 26,284,569 (1) Includes securities purchased under agreements to resell, long term and not considered cash equivalents. (2) Central Bank compulsory deposits relate to a minimum balance that financial institutions are required to maintain with Bacen based on a percentage of deposits received from third parties, considered as restricted use of resources. (3) In 2018, the balances related to the compulsory deposits of time deposits were reclassified to Loans and amounts due from credit institutions for a better presentation and, consequently, the respective comparative balances were also reclassified. |
Loans and amounts due from cred
Loans and amounts due from credit institutions | 12 Months Ended |
Dec. 31, 2018 | |
Loans and amounts due from credit institutions [Abstract] | |
Loans and amounts due from credit institutions | 5. Loans and amounts due from credit institutions The breakdown, by classification, type and currency, of the balances of “Loans and amounts due from credit institutions” in the consolidated financial statements is as follows: Thousand of reais 2018 2017 2016 Classification: Loans and receivables - 65,209,902 65,711,001 Financial Assets Measured At Amortized Cost 79,607,001 - - Of which: Loans and amounts due from credit institutions, gross 79,620,562 65,278,917 27,963,914 Impairment losses (note 9.c) (13,561) (69,015) (201,441) Loans and amounts due from credit institutions, net 79,607,001 65,209,902 65,711,001 Loans and amounts due from credit institutions, gross 79,620,562 65,278,917 65,912,442 Thousand of reais 2018 2017 2016 Type: Time deposits (2) (4) 64,547,525 53,128,272 53,213,602 Reverse repurchase agreements (1) (2) 3,728,963 270,735 848,096 Escrow deposits 10,182,936 10,136,079 9,836,300 Other accounts (3) 1,161,138 1,743,831 2,014,444 Total 79,620,562 65,278,917 65,912,442 (1) Guaranteed by debt instruments. (2) Includes R$12,793 of short-term transactions with low risk of change in their value, considered cash equivalents. (3) As per the IFRS9 adoption the balances of the Loan and Pre Payment Export products were reclassified to Financial Assets Measured at Fair Value through Profit and Loss at the amount of R$611,088. (4) In 2018, the balances related to the compulsory deposits on time deposits were reclassified from Thousand of reais 2018 2017 2016 Currency: Brazilian Real 79,166,257 49,914,691 63,369,993 US dollar 422,247 15,044,088 1,658,980 Euro 32,058 307,633 779,314 Pound sterling - 3,585 51,972 Other currencies - 8,920 52,183 Total 79,620,562 65,278,917 65,912,442 Thousand of reais 2018 2017 2016 Cash equivalents: Short-term transactions and low risk of change in its value 5,821,573 2,028,581 3,445,846 (1) Collateralized by debt instruments. Note 44-d contains a detail of the residual maturity periods of financial assets measured at amortized cost. |
Debt instruments
Debt instruments | 12 Months Ended |
Dec. 31, 2018 | |
Debt instruments [Abstract] | |
Debt instruments | 6. Debt instruments The breakdown, by classification, type and currency, of the balances of “Debt instruments” is as follows: Thousand of reais 2018 2017 2016 Classification: Financial assets held for trading (1) - 34,879,681 59,994,946 Financial Assets Measured At Fair Value Through Profit Or Loss 3,171,746 - - Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading 50,066,469 - - Other Financial assets designated at fair value through profit or loss - 1,658,689 1,668,749 Financial assets - available-for-sale - 84,716,747 55,829,572 Financial Assets Measured At Fair Value Through Other Comprehensive Income (1) 85,395,691 - - Investments Held-to-Maturity - 10,214,454 10,048,761 Loans and receivables - 17,616,515 16,283,259 Financial Assets Measured At Amortized Cost 36,799,509 - - Of which: Debt Instruments 39,513,460 20,400,082 17,838,162 Impairment losses (2,713,951) (2,783,567) (1,554,903) Total 175,433,415 149,086,086 143,825,287 Type: Government securities - Brazil (2) 116,531,146 122,362,389 122,971,854 Debentures and Promissory notes 10,555,952 12,097,230 12,922,763 Other debt securities 48,346,317 14,626,467 7,930,670 Total 175,433,415 149,086,086 143,825,287 (1) On December 31, 2018, management decided to change the classification of Financial Treasury Bills - LFT, of the securities portfolio of Getnet Adquirência e Serviços para Meios de Pagamento S.A. (Getnet SA), Banco Bandepe SA and Santander Corretora de Cambio e Valores Mobiliários S.A. (Santander CCVM). The securities were transferred from the Trading to Available for Sale category, in the amounts of R$739,430, R$14,099 and R$375,488, respectively. Such transfers did not impact the amounts of Consolidated and also did not generate effect on the result. The change in the category occurred due to the revaluation of the recent trading history of these assets. (2) Includes, substantially, National Treasury Bills (LTN), Treasury Bills (LFT) e National Treasury Notes (NTN-A, NTN-B, NTN-C e NTN-F Thousand of reais 2018 2017 2016 Currency: Brazilian Real 166,743,410 137,420,134 134,037,665 US dollar 8,690,005 11,665,952 9,107,513 Euro - - 680,109 Total 175,433,415 149,086,086 143,825,287 Thousand of reais 2018 2017 2016 Debt Instruments linked to: Repo Operations 90,909,891 77,781,728 71,810,310 Banco Central Mandatory Deposits 1,449,207 2,305,158 3,044,896 Operations guarantees in B3 S.A. - Brasil, Bolsa, Balcão (B3 S.A.) 17,985,160 6,273,561 6,221,046 Associated to judiciary deposits and other guarantees 2,078,042 4,743,298 5,358,604 Total 112,422,300 91,103,745 86,434,856 Note 44-d contains a detail of the residual maturity periods of financial assets measured at amortized cost and financial assets measured at fair value through other comprehensive income. |
Equity instruments
Equity instruments | 12 Months Ended |
Dec. 31, 2018 | |
Equity instruments [Abstract] | |
Equity instruments | 7. Equity instruments a) Breakdown The breakdown, by classification and type, of the balances of “Equity instruments” is as follows: Thousand o f reais 2018 2017 2016 Classification: Financial assets held for trading - 489,770 398,461 Financial Assets Measured At Fair Value Through Profit or Loss Held For Trading 766,333 - - Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit or Loss 298,297 - - Other Financial assets designated at fair value through profit or loss - 33,368 42,455 Financial assets available-for-sale - 1,106,637 1,985,473 Financial Assets Measured At Fair Value Through Other Comprehensive Income 40,986 - - Total 1,105,616 1,629,775 2,426,389 Type: Shares of Brazilian companies 783,475 389,113 1,185,653 Shares of foreign companies 1,933 5,347 3,588 Investment funds (1) 320,208 1,235,315 1,237,148 Total 1,105,616 1,629,775 2,426,389 (1) Composed mainly by investment on fixed income, public and private securities. The margin given as collateral for transactions traded on B3 S.A. with derivative financial instruments of its own and of third parties is composed of federal public securities. b) Changes The changes in the balance of “Equity instruments - Financial assets measured at fair value through profit or loss held for trading” were as follows: Thousand of reais 2018 2017 2016 Balance at beginning of year 489,770 398,461 404,973 Net additions (disposals) 277,462 90,696 (7,125) Valuation adjustments (899) 613 613 Balance at end of year 766,333 489,770 398,461 The changes in the balance of “Equity instruments - Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss” were as follows: Thousand of reais 2018 2017 2016 Balance at beginning of year 33,368 42,455 573,664 Net additions (disposals) 143,291 (1,586) (531,209) Valuation adjustments 121,638 (7,501) - Balance at end of year 298,297 33,368 42,455 The changes in the balance of “Equity instruments - Financial Assets Measured At Fair Value Through Other Comprehensive Income” were as follows: Thousand of reais 2018 2017 2016 Balance at beginning of year 1,106,637 1,985,473 1,162,332 Net additions (disposals) (1,034,219) (830,395) 852,820 Valuation adjustments (31,432) (48,441) (29,679) Balance at end of year 40,986 1,106,637 1,985,473 |
Derivative financial instrument
Derivative financial instruments and Short positions | 12 Months Ended |
Dec. 31, 2018 | |
Derivative financial instruments and Short positions [Abstract] | |
Derivative financial instruments and Short positions | 8. Derivative financial instruments and Short positions The main risk factors associated to derivatives contracted are related to exchange rates, interest rates and stocks. To manage these and other market risk factors the Bank uses practices which include the measurement and follow up of the limit´s usage previously defined on internal committees, as well as the daily follow up of the portfolios values in risk, sensitivities and changes in the interest rate and exchange exposure, liquidity gaps, among other practices which allow the control and follow up on the main risk metrics that can affect the Bank´s position in the several markets which it acts. Based on this management model the Bank has accomplished its goal, using operations with derivatives, in optimize the relation risk/benefits even in situation with great volatility. The derivatives fair value is determined through quotation of market prices. The swaps contracts fair value is determined using discounted cash flow modeling techniques, reflecting suitable risk factors. The fair value of NDF and Future contracts are also determined based on the quotation of market prices for derivatives traded in specific chamber (i.e.. stock Exchange for example) or using the same methodology applied for swap contracts. The fair value of options derivatives (call and put) is determined based on the mathematical models, such as Black & Scholes, using yield rates, implied volatilities and the fair value of the corresponding asset. The current market prices are used to price the volatilities. For the derivatives which do not have prices directly disclosed by specific chamber, their fair values are obtained through pricing models which use market information, based on disclosed prices of more liquid assets. Interest rate curves and market volatilities are extracted from theses prices to be used as first input in these models. a) Trading and hedging derivatives a.1) Derivatives Recorded in the Balance Sheet and Compensation Accounts Portfolio Summary of Trading Derivative and Used as Hedge 2018 2017 2016 Assets Swap Differentials Receivable (1) 14,640,289 15,781,207 15,321,646 Option Premiums to Exercise 716,936 553,217 935,520 Forward Contracts and Others 3,006,221 928,464 8,445,807 Total 18,363,446 17,262,888 24,702,973 Liabilities Swap Differentials Payable (1) 15,952,283 14,643,016 12,267,819 Option Premiums Launched 563,787 385,183 1,166,002 Forward Contracts and Others 1,950,765 1,649,287 6,802,794 Total 18,466,835 16,677,486 20,236,615 (1) In 2016, includes swaption (swap + option) and embedded derivatives. Summary by Category Trading 2018 2017 2016 Notional (1) Fair Value Notional (1) Fair Value Notional (1) Fair Value Swap (1,431,110) 1,108,760 3,142,125 Assets 177,233,869 44,487,274 202,081,214 57,294,179 196,887,188 24,311,485 CDI (Interbank Deposit Rates) 36,135,015 24,267,591 33,289,522 22,409,496 44,868,680 22,759,822 Fixed Interest Rate - Real 47,968,999 - 95,700,715 - 126,300,261 - Indexed to Price and Interest Rates 2,581,215 - 5,592,892 - 9,225,789 - Foreign Currency 90,495,240 20,219,683 67,493,635 34,884,683 16,492,458 1,551,663 Others 53,400 - 4,450 - - - Liabilities 176,385,349 (45,918,384) 199,709,355 (56,185,419) 184,350,947 (21,169,360) CDI (Interbank Deposit Rates) 11,801,600 - 16,664,176 - 23,178,722 - Fixed Interest Rate - Real 88,317,044 (23,075,374) 114,055,076 (21,687,884) 133,185,717 (17,414,147) Indexed to Price and Interest Rates 24,308,601 (21,775,017) 40,146,968 (34,107,210) 12,767,212 (3,518,297) Foreign Currency 50,748,008 - 28,420,467 - 15,049,776 (38,836) Others 1,210,096 (1,067,993) 422,668 (390,325) 169,520 (198,080) Options 335,073,080 153,149 190,061,609 168,034 175,841,405 (230,482) Purchased Position 149,076,796 716,936 87,503,833 553,217 83,883,966 935,520 Call Option - US Dollar 14,518,058 239,079 9,369,821 169,542 12,693,748 181,463 Put Option - US Dollar 8,893,620 90,736 5,130,392 42,389 3,788,161 392,048 Call Option - Other 3,118,344 131,297 1,953,481 59,220 20,115,932 62,517 Interbank Market 639,488 4,537 1,185,310 389 17,391,500 7,062 Others (2) 2,478,856 126,760 768,171 58,831 2,724,432 55,455 Put Option - Other 122,546,774 255,824 71,050,139 282,066 47,286,125 299,492 Interbank Market 121,782,816 217,726 70,295,282 257,943 46,106,600 18,029 Others (2) 763,958 38,098 754,857 24,123 1,179,525 281,463 Sold Position 185,996,284 (563,787) 102,557,776 (385,183) 91,957,439 (1,166,002) Call Option - US Dollar 7,615,856 (101,034) 5,595,163 (117,059) 4,314,988 (141,172) Put Option - US Dollar 12,160,912 (169,431) 5,919,598 (77,145) 7,390,733 (952,407) Call Option - Other 31,679,919 (66,002) 19,880,180 (35,961) 30,441,646 (46,940) Interbank Market 29,609,298 (13,195) 19,151,110 (515) 27,597,764 (4,087) Others (2) 2,070,621 (52,807) 729,070 (35,446) 2,843,882 (42,853) Put Option - Other 134,539,597 (227,320) 71,162,835 (155,018) 49,810,072 (25,483) Interbank Market 133,703,672 (179,841) 70,494,622 (126,743) 49,245,495 (5,793) Others (2) 835,925 (47,479) 668,213 (28,275) 564,577 (19,690) Futures Contracts 289,508,200 - 161,725,596 - 104,651,180 - Purchased Position 86,203,734 - 54,806,022 - 40,396,456 - Exchange Coupon (DDI) 20,590,068 - 9,616,936 - 14,473,180 - Interest Rates (DI1 and DIA) 32,690,685 - 26,456,303 - 23,756,523 - Foreign Currency 32,456,813 - 16,733,437 - 1,393,538 - Indexes (3) 466,168 - 1,780,311 - 195,160 - Others - - 219,035 - 578,055 - Sold Position 203,304,466 - 106,919,574 - 64,254,724 - Exchange Coupon (DDI) 146,948,795 - 55,016,928 - 15,048,490 - Interest Rates (DI1 and DIA) 54,160,203 - 51,135,994 - 29,047,678 - Foreign Currency 1,992,574 - 745,849 - 17,384,256 - Indexes (3) 202,894 - 20,803 - 185,506 - Treasury Bonds/Notes - - - - 2,588,794 - Forward Contracts and Others 90,910,841 1,055,456 47,823,561 (720,823) 50,853,154 1,643,013 Purchased Commitment 38,666,269 1,303,561 23,506,096 647,376 20,864,170 3,386,347 Currencies 38,095,625 1,250,706 21,525,220 618,007 19,951,984 3,391,275 Others 570,644 52,855 1,980,876 29,369 912,186 (4,928) Sold Commitment 52,244,572 (248,105) 24,317,465 (1,368,199) 29,988,984 (1,743,334) Currencies 51,958,529 (252,160) 22,096,104 (1,364,617) 29,911,406 (1,826,965) Others 286,043 4,055 2,221,361 (3,582) 77,578 83,631 (1) Nominal value of updated contracts. (2) Includes options of index, mainly being options involving US treasury, shares and stock indexes. (3) Includes Bovespa and S&P index. a.2) Derivatives Financial Instruments by Counterparty Notional 2018 Related Financial Customers Parties Institutions (1) Total "Swap" 34,296,821 32,669,900 110,267,148 177,233,869 Options 14,636,017 1,086,323 319,350,740 335,073,080 Futures Contracts - - 289,508,200 289,508,200 Forward Contracts and Others 39,024,978 48,641,894 3,243,969 90,910,841 (1) Includes trades with B3 S.A. and other securities and commodities exchanges. Notional 2017 2016 Related Financial Customers Parties Institutions (1) Total Total "Swap" 32,912,721 19,599,395 149,569,098 202,081,214 196,887,188 Options 11,263,513 1,240,309 177,557,787 190,061,609 175,841,405 Futures Contracts - - 161,725,596 161,725,596 104,651,180 Forward Contracts and Others 25,470,287 18,816,991 3,536,283 47,823,561 50,853,154 (1) Includes trades with B3 S.A. and other securities and commodities exchanges. a.3) Derivatives Financial Instruments by Maturity Notional 2018 Up to From 3 to Over 3 Months 12 Months 12 Months Total "Swap" 12,347,864 70,975,477 93,910,528 177,233,869 Options 63,376,042 220,982,952 50,714,086 335,073,080 Futures Contracts 159,221,909 67,578,078 62,708,213 289,508,200 Forward Contracts and Others 40,186,310 31,255,384 19,469,147 90,910,841 Notional 2017 2016 Up to From 3 to Over 3 Months 12 Months 12 Months Total Total "Swap" 20,705,247 51,021,102 130,354,865 202,081,214 196,887,188 Options 46,139,545 89,403,700 54,518,364 190,061,609 175,841,405 Futures Contracts 65,489,476 55,490,159 40,745,961 161,725,596 104,651,180 Forward Contracts and Others 25,015,557 14,250,495 8,557,509 47,823,561 50,853,154 a.4) Derivatives by Market Trading Notional Stock Exchange (1) Over the Counter 2018 Total "Swap" 39,880,578 137,353,291 177,233,869 Options 307,644,530 27,428,550 335,073,080 Futures Contracts 289,508,200 - 289,508,200 Forward Contracts and Others 323,413 90,587,428 90,910,841 (1) Includes trades with B3 S.A. Notional Stock Exchange (1) Over the Counter 2017 2016 Cetip Total Total "Swap" - 67,112,505 134,968,709 202,081,214 196,887,188 Options - 172,144,700 17,916,909 190,061,609 175,841,405 Futures Contracts - 161,725,596 - 161,725,596 104,651,180 Forward Contracts and Others - 395,212 47,428,349 47,823,561 50,853,154 (1) Includes trades with B3 S.A. a.5) Information on Credit Derivatives 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 are where the exchange of the return of the reference obligation occurs through a cash flow and where, 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 and the fair value (market value) of the reference obligation on the settlement date of the contract. 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. 2018 Nominal Value Nominal Value Retained Risk Transferred Risk - Total Rate of Return Swap Credit Swap Credit Swaps 1,959,128 416,541 Total 1,959,128 416,541 Value referring to the premium paid on CDS for use as collateral (transfer of risks) in the amount of R$1,288. The effect in the Required Stockholder's Equity of the risk received was R$84,487. During the period, there was no occurrence of credit event related to the events generated by the contracts. 2018 Over Maximum Potential for Future Payments - Gross 12 Months Total Per Instrument CDS 1,959,128 1,959,128 Total 1,959,128 1,959,128 Per Risk Classification Below Investment Grade 1,959,128 1,959,128 Total 1,959,128 1,959,128 Per Reference Entity Brazilian Government 1,959,128 1,959,128 Total 1,959,128 1,959,128 a.6) Hedge Accounting There are three types of hedge accounting: Fair Value Hedge, Cash Flow Hedge and Foreing Currency Investments Hedge. Fair Value Hedge Banco Santander's fair value strategy consists of hedging the exposure to changes in fair value related to recognized assets and liabilities. The adopted fair value management methodology segregates transactions by risk factor (e.g. Real/Dollar foreign exchange risk, fixed Reais interest rate risk, Dollar foreign exchange coupon risk, inflation risk, interest rate risk, etc.). The transactions generate exposures that are consolidated by risk factor and compared with internal pre-established limits. In order to hedge the changes of fair value in receivables and interest payments, Santander uses interest rate Swap contracts related to pre-fixed assets and liabilities. Banco Santander applies fair value hedge as follows: • The Bank contracts Foreign Currency + Coupon against % CDI swaps and designates them as a derivative instrument in a Hedge Accounting structure with foreign currency loans operations as the hedged item in this relationship. The hedging relationships were designated in January 2016 and the related Swaps will mature between March 2019 and 2024. • The Bank has a portfolio of loan assets issued in foreign currency - Dollar at a fixed rate in the Balance Sheet of the “Santander EFC” (independent subsidiary in Spain), whose functional currency is the euro. In order to manage this mismatch, the Bank designates each Foreign Currency Floating EUR versus Fixed Dollar swap as the fair value hedge of the corresponding loan. The hedging relationships were designated in 2013 and the related Swaps will mature between June 2019 and 2022. • The Bank has a portfolio of Euro-indexed Assets traded in the Cayman Islands. In the Euro transaction, the value of the Dollar asset will be converted into Euro at the exchange rate in the contract on the date of recorded of the transaction. After the conversion, the principal, already denominated in Euro will be restated by % CDI or a pre-fixed rate. The Assets will be covered by Cross Currency Swaps in order to transfer the risk in Euro to LIBOR + Coupon. The hedging relationships were designated in February 2017 and the related Swaps will mature between 2022 and 2024. • The Bank has a pre-fixed interest rate risk generated by Government Securities (NTN-F and LTN) in the available for sale portfolio. To manage this mismatch, it contracts DI futures on the BM&FBovespa and designates them as a derivative instrument in a Hedge Accounting structure, with the object of this relationship being fixed-rate government securities (NTN-F and LTN). The hedge relationships were designated in March 2017 and matures in 2027. • The Bank has an inflation-linked risk generated by Debenture in the available for sale portfolio. To manage this mismatch, it contracts DAP futures on the BM&FBovespa and designates them as a derivative instrument in a Hedge Accounting structure. The hedge relationships were designated in June 2018 and matures in 2028. In order to assess the effectiveness and measure the ineffectiveness of the strategies, the institution complies with international accounting standard IAS 39, which requires that the effectiveness test be performed at the beginning (prospective test) of the hedge structure and be repeated periodically (prospective and retrospective tests) in order to demonstrate that the hedge ratio remains effective. a) Prospective test: In accordance with the standard, the prospective test must be performed on the inception date and on a quarterly basis in order to demonstrate that the expectations regarding the effectiveness of the hedge ratio are high. a.1) Initial prospective test (at inception): it is restricted to a qualitative review of the critical terms and conditions of the hedging instrument and the hedged item in order to conclude whether changes in the fair value of the two instruments are expected to fully offset each other. a.2) Periodic prospective test: the sensitivity of the fair value of the hedged item and the hedging instrument will be periodically computed at a parallel variation of 10 basis points in the interest rate curve. For the purposes of effectiveness, these two sensitivity ratios should be between 80% and 125 b) Retrospective test: the retrospective effectiveness test will be performed by comparing the MTM change of the hedging instrument since the inception date with the MTM change of the hedged item since the inception date. In fair value hedges, gains or losses, both on hedging instruments and hedged items (attributable to the type of risk being hedged) are recognized directly in the consolidated statement of income. 2018 2017 2016 Hedge Structure Effective Portion Accumulated Portion Ineffective Effective Portion Accumulated Portion Ineffective Effective Portion Accumulated Portion Ineffective Fair Value Hedge Brazilian Treasury Bonds (LTN, NTN-F) (1,381,156) - (388,446) - - - Eurobonds - - - - 13,163 - Bonds (LEA) (191,472) - (1,200) - - - Resolution 2770 689 - 304 - - - Trade Finance Off (58,020) - (57,386) - 20,471 - Total (1,629,959) - (446,728) - 33,634 - 2018 2017 2016 Adjustment Adjustment Adjustment to Market Fair Value to Market Fair Value to Market Fair Value Hedge Instruments Swap Contracts (118,807) (98,020) (95,672) (130,683) (26,703) (136,467) Assets 56,633 4,398,851 12,954 3,005,666 11,486 1,046,012 CDI (Interbank Deposit Rates) (5) (8) (1,057) 1,722,515 (357) 1,818,366 - - Indexed to Foreign Currency - Pre Dollar (1) - - 320 8,742 1,103 17,678 Indexed to Foreign Currency - USD/BRL - Dollar (2)(3) (4) 24,411 2,161,661 (23,585) 691,872 (8,957) 744,260 Indexed to Foreign Currency - Euro (6)(7) 33,279 514,675 36,576 486,686 19,340 284,074 Liabilities (175,440) (4,496,871) (108,626) (3,136,349) (38,189) (1,182,479) Indexed to Foreign Currency - US Dollar (6) (16,325) (301,011) (20,109) (261,915) (14,958) (323,197) Indexed to Foreign Currency - Pre Dollar (5) (10,030) (201,819) (16,303) (225,857) (1,103) (17,676) CDI (Interbank Deposit Rates) (1)(2) (63,971) (1,739,553) (21,380) (474,398) (18,395) (804,059) Fixed Interest Rate - Real (3) (8) (43,801) (1,701,759) 22 (1,640,708) (3,733) (37,547) Indexed to Foreign Currency - Colombian Peso (7) (5,197) (195,671) (13,863) (219,392) - - Indexed to Foreign Currency - Pre Euro (4) (36,116) (357,058) (36,993) (314,079) - - Object of Hedge Assets 84,343 4,334,737 77,623 3,126,828 23,165 693,132 Loans and Receivables 89,935 1,840,614 79,496 1,382,326 15,287 546,740 Indexed to Foreign Currency - US Dollar (6) 1,315 299,403 4,319 288,420 4,809 323,780 Indexed to Foreign Currency - Pre Dollar (5) 10,019 200,490 16,416 224,943 - - CDI (Interbank Deposit Rates) (2) 40,150 766,399 16,401 352,071 10,478 222,960 Fixed Interest Rate - Real (3) 1,533 33,063 3,900 21,077 - - Indexed to Foreign Currency - Colombian Peso (7) 64 190,558 (2,898) 173,990 - - Indexed to Foreign Currency - Pre Euro (4) 36,854 350,701 41,358 321,825 - - Debt instruments (5,592) 2,494,123 (1,873) 1,744,502 7,878 146,392 Promissory Notes - NP 31,518 852,029 445 125,973 7,878 146,392 CDI (Interbank Deposit Rates) (1)(2) 28,046 811,906 354 119,892 2,775 108,845 Fixed Interest Rate - Real (3) 3,472 40,123 91 6,082 5,103 37,547 National Treasury Notes - NTN F (8) (37,110) 1,642,094 (2,318) 1,618,529 - - Liabilities - - - - 12,830 (803,929) Foreign Borrowings - - - - 12,830 (803,929) Indexed to Foreign Currency - US Dollar (2) - - - - 12,830 (803,929) 2018 2017 Hedge Instruments Swap Contracts 34,513,380 22,206,615 Interest Rate (DI1 and DIA) 33,861,121 22,206,615 Indexed to Price - IPCA (DAP) 652,259 - 2018 2017 Adjustment Adjustment Object of Hedge to Market Fair Value to Market Fair Value Assets 968,329 36,985,493 364,434 24,779,831 Securities - Available for Sale Government Securities 937,017 36,377,478 364,434 24,779,831 National Treasury Bills - LTN 357,330 24,650,965 219,611 13,893,932 National Treasury Notes - NTN F 517,063 10,510,482 144,823 10,885,899 Private Securities 31,312 608,015 - - Debentures 31,312 608,015 - - (1) Passive instruments whose hedged items are securities represented by promissory notes indexed in Certificates of Interbank Deposits (CDI) with market value of R$811,906 (12/31/2017 - R$109,538). (2) These are passive instruments whose hedge items are credit operations and securities represented by promissory notes indexed in interbank deposit certificates (CDI), with market value of credit operations of R$766,399 (12/31/2017 - R$352,071) and in December 31, 2017, promissory notes in the amount of R$10,354. (3) These are passive instruments whose hedged items are securities and securities represented by promissory notes indexed to Real interest rates with market value of R$40,124 (12/31/2017 - R$6,082 and 12/31/2016 - R$37,547) and credit operations in the amount of R$33,063 (12/31/2017 - R$21,077). (4) These are passive instruments whose hedged items are credit operations indexed in foreign currency - euro at the market value of R$350,701 (12/31/2017 - R$321,825). (5) These are passive instruments whose hedged items are credit operations indexed in foreign currency - US dollar in the market value of R$200,491 (12/31/2017 - R$224,943). (6) These are passive instruments whose hedge items are credit operations indexed in foreign currency - US dollar with a market value of R$299,404 (12/31/2017 - R$288,420). (7) These are passive instruments whose hedged items are credit operations indexed in foreign currency - Colombian peso with market value of R$190,559 (12/31/2017 - R$173,990). (8) These are obligations over instruments whose hedged items are pre-fixed government securities with a market value e of R$1,624,094 (12/31/2017 - R$1,618,529). (9) Current value of the instruments as of December 31, 2018 is R$22,206,615. Cash Flow Hedge Banco Santander's cash flow hedge strategies consist of hedging exposure to changes in cash flows, interest payments and the exchange rate, which are attributable to changes in the interest rates related to recognized assets and liabilities and changes in the exchange rate of non-recognized assets and liabilities. Banco Santander applies cash flow hedges as follows: • It contracts Fixed Dollar Liabilities and Reais/Euro Asset swaps and designates them as a derivative instrument in a Cash Flow Hedge structure, having Reais/Euro funding operations with third-parties in the Cayman Islands as the hedged item in this relationship. The hedging relationships were designated in May 2018 and the related hedges will mature between February 2019 and 2020. • It contracts USD futures or DDI + DI Futures (Synthetic Dollar Futures) and designates them as a derivative instrument in a Cash Flow Hedge structure, having part of its dollar Loan portfolio as the hedged item in this relationship. The hedging relationships were designated in 2007 and the related hedges will mature between January 2019 and 2028. • The Cash Flow Hedge Futures structure, consisting of futures (DI1F21 and DI1F23) maturing in January 2021 and January 2023, were partially discontinued throughout November 2018. Hedge objects were securities available for sale - Financial Treasury Bills - LFT. The mark-to-market effect of these contracts, net of tax effects, and which are posted in shareholders' equity corresponds to a credit in the amount of R$122,364, of which R$36,846 will be realized against income / expenses in the next twelve months, from January 2019. In cash flow hedges, the effective portion of the change in the value of the hedging instrument is temporarily recognized in shareholders' equity under "Other comprehensive income - cash flow hedges" until the forecasted transactions occur, when that portion is recognized in the consolidated statements of income, except if the forecasted transactions result in the recognition of non-financial assets or liabilities, this portion will be included in the cost of the financial asset or liability. The non-effective portion of the variation in the value of exchange rate hedge derivatives is recognized directly in the consolidated statements of income. And the non-effective portion of the gains and losses on cash flow hedging instruments in a foreign operation is recognized directly in "Gains (losses) on financial assets and liabilities (net)" in the consolidated statements of income. In this hedge strategy the effectiveness tests (prospective and retrospective) are conducted through creation of two hypothetical derivatives, one for the object and another for the instrument. The hypothetical derivative of the object is a conceptual swap where the liability leg simulates the “stable portion” to be protected and the asset leg is identical to the Pre-fixed leg of the derivative designated as hedge. For the hypothetical derivative of the instrument the asset leg will be set by the number of contracts of the future and the liability leg will be the pre-fixed rate negotiated on the acquisition of these contracts. The hypothetical derivative is stable once the contracts are kept until the maturity. Any ineffectiveness will be recognized in profit or loss. Any ineffectiveness is recognized in profit or loss. a) Prospective Test: in accordance with the standard, the prospective test should be performed on the inception date and on a quarterly basis in order to demonstrate that the expectations regarding the effectiveness of the hedge ratio are high. However, the tests are carried out on a monthly basis in order to monitor the projections in a proactive and more efficient manner, in addition to ensuring better maintenance of test-related routines. a.1) Periodic Prospective Test: According to the agreed process flow, Market Risk performs the projections of three scenarios to the tests, being: 1st 10bps in the curve; 2nd 50bps in the curve and 3rd 100bps in the curve. Using the validated estimates, the VPE Finance Strategy and Quality - Management Information | Products & Segments will perform the prospective tests through the valuation of the two legs variable from operation to market. a.2) Initial Prospective Test: the methodology of the periodic prospective test should also be applied on the initial date of each new strategy. b) Retrospective Test: It should be made monthly with historical data to demonstrate cumulatively that the hedge was effective, according to the methodology presented previously. Any ineffectiveness are recognized in profit or loss. The Ineffective portion is recognized through the prospective hedge test. Effectiveness should range between 80% and 125%. In cash flow hedges, the effective portion of changes in the value of the hedging instrument is temporarily recognized in equity under “Other comprehensive income - cash flow hedges” (Note 26) until the expected transactions occur, when this portion is then recognized in the consolidated income statement. However, if the expected transactions result in the recognition of non-financial assets or liabilities, this portfolio will be included in the cost of financial assets or liabilities. The non-effective portion of the change in the value of foreign exchange hedging derivatives is recognized directly in the consolidated income statement. And the non-effective portion of gains and losses on cash flow hedging instruments in a foreign operation is recognized directly in “Gains (losses) with (net) financial assets and liabilities” in the consolidated income statement. 2018 2017 2016 Hedge Structure Effective Portion Accumulated Portion Ineffective Effective Portion Accumulated Portion Ineffective Effective Portion Accumulated Portion Ineffective Cash Flow Hedge Eurobonds (8,925) - (25,576) - (20,535) - - Trade Finance Off (16,453) (3,981) (94,896) 9,267 - - Government Securities (LFT) 331,922 - 129,995 - - - Bank Deposit Certificate - CDB 1,225 - 129,995 - - - Loans and Receivables - - - - 174,956 - Total 307,769 (3,981) 139,518 9,267 154,421 - 2018 2017 2016 Adjustment Adjustment Adjustment to Fair Value Fair Value to Fair Value Fair Value to Fair Value Fair Value Hedge Instruments Swap Contracts 12,757 218,424 (25,142) 160,114 (27,261) 48,169 Asset (11,470) 2,421,200 97,846 2,361,070 137,664 1,952,189 Indexed to Foreign Currency - Pre Dollar (1) (123,696) 1,131,928 (42,149) 992,879 84,812 - 1,477,821 Indexed to Foreign Currency - Euro (3) 111,124 1,122,779 134,435 1,223,004 52,852 474,368 Indexed to Foreign Currency - USD/BRL - Dollar (2) 1,102 166,493 5,560 145,187 - - Liabilities 24,227 (2,202,776) (122,988) (2,200,956) (164,925) (1,904,020) CDI (Interbank Deposit Rates) (1) (2) (504) (160,754) (5,735) (147,925) (995) (341,938) Indexed to Foreign Currency - Pre Reais (1) - - - - (1,288) (199,954) Indexed to Foreign Currency - Pre Euro (1) 92,505 (972,290) 13,639 (895,399) (102,998) (805,326) Indexed to Foreign Currency - Dollar (3) (67,774) (1,069,732) (130,892) (1,157,632) (59,367) (548,684) Indexed to Foreign Currency - Reais (3) - - - - (277) (8,118) 2018 2017 2016 Notional Notional Notional 44,541,938 60,299,595 80,149,530 Trade Finance Operations (4) 44,000,952 54,995,334 80,149,530 Foreign Currency - Dollar 9,408,707 3,362,582 450,571 Interest Rate (DI1 and DIA) 21,981,748 32,344,276 46,314,644 Interest Rate DDI1 12,610,496 19,288,476 33,384,315 Securities-available for sale 540,987 5,304,261 - Interest rate (DI1 and DIA) 540,987 5,304,261 - 2018 2017 2016 Hedge Item - Cost Assets 19,678,934 25,697,292 27,858,923 Lending Operations - Financing and Export Credit and Imports (3) (4) 10,113,706 8,295,191 10,816,780 Loans and Receivables (2) (3) (4) 6,704,113 9,972,640 13,870,897 Financial Assets Measured at Amortized Cost (4) - 354,315 529,997 Brazilian Foreign Debt Bonds (1) 894,331 809,660 701,300 Available for sale - Promissory Notes - NP (2) (4) 1,653,969 1,194,266 1,939,949 Government Securities -LFT (5) 312,815 5,071,220 - Liabilities - - (1,332,972) Foreign Borrowings (4) - - - (1,332,972) (1) Operation with maturity date as April 1st, 2021 (12/31/2017 - operation with maturity date as April 1st, 2021), which hedge objects are securities represented by Brazilian external bonds. (2) Operations with maturity dates between April 2019 and February 2020 (12/31/2017 - operations with maturity dates between January and April, 2018), which hedge objects in 2018 are loans and in 2017 are securities represented by promissory notes. (3) Operations with maturity dates between January 2019 and February 2022 (12/31/2017 - operations with maturity dates between January 2018 and September 2022 and 12/31/2016 - operations with maturity dates between January 2017 and December 2025), which hedge objects are credit operations with credit entities. (4) Operations with maturity dates between January 2019 and September 2022 (12/31/2017 - operations with maturity dates between January 2018 and December 2020), which hedge objects are funding operations represented by Certificates of Interfinance Deposits - CDI, Bill of Exchange - LC and Financial Letter - LF. (5) Operations with maturity dates between February 2019 and December 2028 (12/31/2017 - operations with maturity dates between February 2018 and November 2026 and 12/31/2016 - operations with maturity dates between January 2017 and January 2018) and updated amount of R$16,738,641 (31/12/2017 - R$16,811,747 and 31/12/2016 - R$29,164,917) where the operations are derivatives future contracts in Dolar, DI and DDI. Those derivatives combined with trade finance operations are used to hedge the following objects: credit operations - import and export financing, loans, other credit operations and securities represented by promissory notes. (6) Operation with maturity date between September 2020 and March 2023 (12/31/2017 - operations with maturity dates between March 2021 and March 2023), which hedge objects are Financial Letters - LFT, booked in the heading of securities. The effect of marking to market the swaps and future contracts corresponds to a credit in the amount of R$76,534 (2017 - 116,441 and 2016 - R$69,489) accounted on Stockholders equity, net of tax effects, of which R$2,450 (12/31/2017 - R$9,342) will be realized in the next twelve months, starting in 2019. Hedging of Foreign Investments Banco Santander reevaluated the investment structure of the wholly-owned subsidiary in Madrid (EFC), as it noted that due to the change in the strategy of the operation in practice, this subsidiary has a business model in which the Bank has a significant influence on driving and decision-making of its activities. According to the concept discussed in IAS 21, Management concluded that the functional currency of this investment is the Real and, therefore, this change becomes effective prospectively as from January 2017. In addition, the Hedge Accounting structure of Foreign investment that Banco Santander had on this investment was discontinued as of the date of change of the functional currency. In this way, the functional currency of Santander EFC and the Cayman agency is Real and the exchange rate differences of operations in foreign currency are recorded in the income statement. In order to hedge the exchange rate exposures, the Bank uses derivatives, and for both investments abroad the Bank does not apply Hedge Accounting. Foreign exchange variations on foreign currency transactions and the effect of derivatives used in economic protection (futures contracts) are recorded in the income statement. a.7) Derivatives Pledged as Guarantee The margin used as guarantee of the transactions traded on the B3 S.A. with derivative financial instruments from own and third parties portfolios are composed by government securities. 2018 2017 2016 Financial Treasury Bill - LFT 7,552,926 708,960 1,556,804 National Treasury Bill - LTN 3,392,886 4,371,286 4,636,644 National Treasury Notes - NTN 873,134 1,193,315 27,598 11,818,946 6,273,561 6,221,046 b) Sho |
Loans and advances to clients
Loans and advances to clients | 12 Months Ended |
Dec. 31, 2018 | |
Loans and advances to clients [Abstract] | |
Loans and advances to clients | 9. Loans and advances to clients a) Breakdown The breakdown, by classification, of the balances of “Loans and advances to clients” in the consolidated financial statements is as follows: Thousand of reais 2018 2017 2016 Classification: Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss 619,180 - - Loans and Receivables - 272,420,157 252,002,774 Financial Assets Measured At Amortized Cost 301,072,207 - - Of which: Loans and receivables at amortized cost 321,314,010 287,829,213 268,437,556 Impairment losses (20,241,803) (15,409,056) (16,434,782) Loans and advances to customers, net 301,691,387 272,420,157 252,002,774 Loans and advances to customers, gross 321,933,190 287,829,213 268,437,556 Thousand of reais 2018 2017 2016 Type: Loans operations (1) 308,364,517 272,561,017 257,256,452 Lease Portfolio 1,836,504 1,888,444 2,092,882 Repurchase agreements 509,147 403,415 308,483 Other receivables (2) 11,223,022 12,976,337 8,779,739 Total 321,933,190 287,829,213 268,437,556 (1) Includes loans and other loans with credit characteristics. (2) Refers substantially to Foreign Exchange Transactions and Other Receivables with credit granting characteristics. Note 44-d contains a detail of the residual maturity periods of loans and receivables. There are no loans and advances to clients for material amounts without fixed maturity dates. b) Detail Following is a detail, by loan type and status, borrower sector and interest rate formula, of the loans and advances to clients, which reflect the Bank's exposure to credit risk in its core business, gross of impairment losses: Thousand of reais 2018 2017 2016 Loan borrower sector: Commercial, and industrial 146,293,616 140,619,110 140,992,900 Real estate-construction 36,515,352 34,808,681 36,650,011 Installment loans to individuals 137,287,593 110,512,978 88,701,763 Lease financing 1,836,629 1,888,444 2,092,882 Total 321,933,190 287,829,213 268,437,556 Thousand of reais 2018 2017 2016 Interest rate formula: Fixed interest rate 240,772,724 202,592,491 178,231,509 Floating rate 81,160,466 85,236,722 90,206,047 Total 321,933,190 287,829,213 268,437,556 2018 Debt Sector by Maturity Less than 1 year % of total Between 1 and 5 years % of total More than 5 years % of total Total % of total Commercial and industrial 109,802,828 58.92% 32,538,999 32.77% 3,951,789 10.90% 146,293,616 45.44% Real estate 4,298,925 2.31% 7,964,308 8.02% 24,252,119 66.90% 36,515,352 11.34% Installment loans to individuals 71,433,099 38.33% 57,808,600 58.21% 8,045,894 22.20% 137,287,593 42.64% Lease financing 838,659 0.45% 997,644 1.00% 326 0.00% 1,836,629 0.57% Loans and advances to customers, gross 186,373,511 100.00% 99,309,551 100.00% 36,250,128 100.00% 321,933,190 100.00% 2017 Debt Sector by Maturity Less than 1 year % of total Between 1 and 5 years % of total More than 5 years % of total Total % of total Commercial and industrial 103,377,571 61.65% 31,262,492 37.89% 5,979,047 19.25% 37,241,539 48.85% Real estate 7,791,753 5.35% 10,970,004 13.29% 16,046,924 51.65% 34,808,681 12.09% Installment loans to individuals 62,078,225 32.29% 39,393,699 47.74% 9,041,054 29.10% 110,512,978 38.40% Lease financing 1,000,418 0.71% 886,833 1.07% 1,193 0.00% 1,888,444 0.66% Loans and advances to customers, gross 174,247,967 100.00% 82,513,028 99.99% 31,068,218 100.00% 184,451,642 100.00% 2016 Debt Sector by Maturity Less than 1 year % of total Between 1 and 5 years % of total More than 5 years % of total Total % of total Commercial and industrial 99,657,024 61.65% 35,789,118 37.89% 554675800.00% 19.25% 41,335,876 48.85% Real estate 8,648,702 5.35% 11,761,420 13.29% 16,239,889 51.65% 36,650,011 12.09% Installment loans to individuals 52,205,927 32.29% 30,867,880 47.74% 5,627,956 29.10% 88,701,763 38.40% Lease financing 1,152,579 0.71% 937,951 1.07% 2,352 0.00% 2,092,882 0.66% Loans and advances to customers, gross 161,664,232 100.00% 79,356,369 99.99% 27,416,955 100.00% 168,780,532 100.00% Thousand of reais 2018 2017 2016 Maturity Less than 1 year 186,373,511 174,247,968 161,664,232 Between 1 and 5 years 99,309,551 82,513,030 79,356,369 More than 5 years 36,250,128 31,068,215 27,416,955 Loans and advances to customers, gross 321,933,190 287,829,213 268,437,556 Internal risk classification Low 240,440,294 226,098,497 207,889,639 Medium-low 50,485,682 33,635,378 32,104,168 Medium 11,967,262 10,423,293 10,940,879 Medium - high 7,722,198 8,215,024 6,976,969 High 11,317,754 9,457,021 10,525,901 Loans and advances to customers, gross 321,933,190 287,829,213 268,437,556 c) Impairment losses The changes in the allowances for the impairment losses on the balances of “Loans and receivables” were as follows: Thousand of reais 2018 Stage 1 Stage 2 Stage 3 Credit losses expected in 12 months Expected credit losses over a useful life not subject to impairment Expected credit losses during the useful life subject to impairment Total Balance at beginning of year 3,833,553 3,767,490 13,122,019 20,723,062 Impairment losses charged to income for the year 83,725 389,100 13,067,280 13,540,105 Transfers between stages (1,096,539) (273,048) 4,502,795 3,133,208 Movement of the period 1,180,264 662,148 8,564,485 10,406,897 Of which: Commercial and industrial (311,546) (161,669) 4,093,507 3,620,292 Real estate-construction (10,173) (28,581) 231,655 192,901 Installment loans to individuals 406,011 581,068 8,721,164 9,708,243 Lease financing (567) (1,718) 20,954 18,669 Write-off of impaired balances against recorded impairment allowance - (377,471) (10,916,381) (11,293,852) Of which: Commercial and industrial - (132,770) (3,848,644) (3,981,414) Real estate-construction - (877) (189,783) (190,660) Installment loans to individuals - (243,824) (6,855,729) (7,099,553) Lease financing - - (22,225) (22,225) Balance at end of year 3,917,278 3,779,119 15,272,918 22,969,315 Of which: Loans and advances to customers 3,831,812 3,727,264 12,682,727 20,241,803 Loans and amounts due from credit institutions (Note 5) - 13,561 - 13,561 Provision for Debt Instruments (Note 6) 85,465 38,296 2,590,190 2,713,951 - Recoveries of loans previously charged off - - 826,573 826,573 Of which: Commercial and industrial - - 345,085 345,085 Real estate-construction - - 103,433 103,433 Installment loans to individuals - - 369,557 369,557 Lease financing - - 8,498 8,498 Thousand of reais 2017 2016 Balance at beginning of year 18,191,126 15,411,759 Impairment losses charged to income for the year 13,492,072 14,383,935 Of which: Commercial and industrial 5,499,018 6,523,051 Real estate-construction 471,366 369,431 Installment loans to individuals 7,460,458 7,616,819 Lease financing 61,230 (125,366) Write-off of impaired balances against recorded impairment allowance (13,421,560) (11,604,568) Of which: Commercial and industrial (5,715,903) (4,553,166) Real estate-construction (341,804) (189,625) Installment loans to individuals (7,312,310) (6,810,997) Lease financing (51,543) (50,780) Balance at end of year 18,261,638 18,191,126 Of which: Loans and advances to customers 15,409,056 16,434,782 Loans and amounts due from credit institutions (Note 5) 69,015 201,441 Provision for Debt Instruments (Note 6) 2,783,567 1,554,903 Recoveries of loans previously charged off 1,153,931 994,101 Of which: Commercial and industrial 412,514 562,393 Real estate-construction 209,940 102,826 Installment loans to individuals 521,589 314,422 Lease financing 9,888 14,460 Taking into account these amounts recognized in “Impairment losses charged to income for the year” and the "Recoveries of loans previously charged off", the "Impairment losses on financial assets - Loans and receivables” amounted on December 31, 2018 R$12,713,532 (2017 - R$12,338,141 e 2016 - R$13,389,834). The balances of the provision for losses due to non-recovery by debtor sector are as follows: Thousand of reais 2018 2017 2016 Commercial and industrial 10,791,702 10,338,225 10,555,109 Real estate - Construction 358,119 493,422 363,859 Installment loans to individuals 11,768,124 7,373,969 7,225,822 Lease financing 51,370 56,022 46,336 Total 22,969,315 18,261,638 18,191,126 d) Impaired assets The details of the changes in the balance of the financial assets classified as “Loans and receivables - loans and advances to clients” (as defined at Note 1.i) and considered to be impaired due to credit risk are as follows: Thousand of reais 2018 2017 2016 Balance at beginning of year on 01/01/2018 after the initial adoption IFRS 9) 19,847,987 18,887,132 18,599,379 Net additions 13,871,666 13,679,423 11,892,321 Written-off assets (11,293,852) (13,421,560) (11,604,568) Balance at end of year 22,425,801 19,144,995 18,887,132 Following is a detail of the financial assets considered to be impaired classified by age of the oldest past-due amount: Thousand of reais 2018 2017 2016 With no Past-Due Balances or Less than 3 Months Past Due 12,000,867 10,844,831 10,550,548 With Balances Past Due by 3 to 6 Months 3,473,591 4,123,796 2,983,575 6 to 12 Months 4,929,099 3,791,805 4,921,527 12 to 18 Months 1,144,035 271,965 339,596 18 to 24 Months 325,701 20,825 53,578 More than 24 Months 552,508 91,773 38,308 Total 22,425,801 19,144,995 18,887,132 Debt Sector Commercial and industrial 11,832,302 11,993,953 11,628,655 Real estate - Construction 1,035,352 781,886 718,514 Installment loans to individuals 9,499,148 6,304,134 6,487,717 Lease financing 58,999 65,022 52,246 Total 22,425,801 19,144,995 18,887,132 e) Loan past due for less than 90 days but not classified as impaired Thousand of reais 2018 % of total loans past due for less than 90 days 2017 % of total loans past due for less than 90 days 2016 % of total loans past due for less than 90 days Commercial and industrial 4,424,143 19.77% 3,559,349 19.90% 4,141,349 23.79% Real estate - Construction 4,527,432 20.23% 4,879,563 27.29% 5,201,709 29.88% Installment loans to individuals 13,255,646 59.24% 9,266,366 51.82% 7,957,294 45.71% Financial Leasing 167,741 0.75% 176,528 0.99% 108,607 0.62% Total (1) 22,374,962 100.00% 17,881,806 100.00% 17,408,959 100.00% f) Lease at present value As at December 31, 2018, 2017 and 2016 there were no material agreements for lease contracts. Breakdown by maturity Gross investment in lease transactions Thousand of reais 2018 2017 2016 Overdue 4,817 11,412 16,051 Due to: Up to 1 year 975,183 1,057,023 1,207,473 From 1 to 5 years 1,160,986 1,101,104 1,190,844 Over 5 years 1,071 2,177 4,079 Total 2,142,057 2,171,716 2,418,447 g) Transfer of financial assets with retention of risks and benefits On December 31, 2018, the amount recorded on “Loans and advances to clients” related to loan portfolio assigned is R$122,271 (2017 - R$431,397 and 2016 - R$783,967), and R$126,906 (2017 - R$428,248 and 2016 - R$774,673) of “Other financial liabilities - Financial Liabilities Associated with Assets Transfer” (Note 21). The foregoing transfer was conducted with a recourse clause and the mandatory repurchase is provided for in the following events: - agreements in default for longer than 90 consecutive days; - agreements under renegotiation; - agreements subject to portability pursuant to Resolution 3,401 of the Brazilian Monetary Council (CMN); - agreements subject to rights of intervention by certain parties to the contract. |
Non-current assets held for sal
Non-current assets held for sale | 12 Months Ended |
Dec. 31, 2018 | |
Non-current assets held for sale [Abstract] | |
Non-current assets held for sale | 10. Non-current assets held for sale At December 31, 2018, 2017 and 2016, the total amount of non-current assets held for sale includes foreclosed assets and other tangible assets. The change in the "Non-current assets held for sale" is as follows: Thousand of reais 2018 2017 2016 Balance at beginning of year 1,507,548 1,418,308 1,310,033 Loan repayments - repossession of assets 785,139 524,497 834,903 Capital Increase in Companies held for sale - - 10,462 Additions / disposals (net) due to change in the scope of consolidation (1)(3) (130,713) - (497,847) Sales (563,607) (434,553) (239,291) Others - (704) 48 Final balance, gross 1,598,367 1,507,548 1,418,308 Impairment losses (2) (218,136) (352,092) (80,423) Impairment as a percentage of foreclosed assets 13.65% 23.37% 10.52% Balance at end of year 1,380,231 1,155,456 1,337,885 (1) On September 30, 2016, as a result of the non-expectation of sale of investment in BW Guirapá and controlled, from a market period, an administrator transferred the total of this balance to the caption of investments in affiliated and controlled companies in the country (Note 11). In 2017, as described at note 3, this investment was sold. (2) In 2018, includes the amount of R$133,957 of provisions for devaluations on real estate and which were subsequently sold, constituted from valuation reports prepared by specialized external consulting, recorded as a provision for impairment losses, in 2017, this provision was R$271,670 (Note 43). (3 ) On June 30, 2018, The Management of Banco Santander revalued your strategy on the investment in the company Real TJK Empreendimento Imobiliário S.A. (current name for Rojo Entretenimento S.A.), a company that owns the Teatro Santander, and decided to transfer the company from non-current assets held to sale to associates and subsidiaries (Note 11). On December 31, 2018, the amount of this investment was R$0 (12/31/2017- R$130,713) in the Bank and Consolidated. |
Investments in associates and j
Investments in associates and joint ventures | 12 Months Ended |
Dec. 31, 2018 | |
Investments in associates and joint ventures [Abstract] | |
Investments in associates and joint ventures | 11. Investments in associates and joint ventures Jointly controlled Banco Santander considers investments classified as jointly controlled when they possess a shareholders' agreement, which sets that the strategic, financial and operating decisions requires the unanimous consent of all investors. Significant Influence Associates are entities over which the Bank is in a position to exercise significant influence (significant influence is the power to participate in the financial and operating decisions of the investee) but it does not control or has joint control over the investee. a) Breakdown Participation % Jointly Controlled by Banco Santander Activity Country 2018 2017 2016 Banco RCI Brasil S.A. Bank Brazil 39.89% 39.89% 39.89% Norchem Participações e Consultoria S.A. (1) Other Activities Brazil 50.00% 50.00% 50.00% Cibrasec - Companhia Brasileira de Securitização (1) (3) (8) (14) Securitization Brazil 9.72% 9.72% 9.72% Estruturadora Brasileira de Projetos S.A. - EBP (1) (8) (10) Other Activities Brazil 11.11% 11.11% 11.11% Gestora de Inteligência de Crédito (4)(9)(11) Credit Bureau Brazil 20.00% 20.00% 20.00% Campo Grande Empreendimentos (15) Other Activities Brazil 25.32% 25.32% 25.32% Banco Hyundai Capital Brasil S.A. (formerly named BHJV Assessoria e Consultoria Empresarial Ltda.) (16) Bank Brazil 50.00% - - Santander Auto S.A. (17) Other Activities Brazil 50.00% - - Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações S.A.) Webmotors S.A. (6) (7)(11) Other Activities Brazil 70.00% 70.00% 70.00% Tecnologia Bancária S.A. - TECBAN (1) Other Activities Brazil 19.81% 19.81% 19.81% PSA Corretora de Seguros e Serviços Ltda. (5)(12)(13) Insurance Broker Brazil 50.00% 50.00% 50.00% Significant Influence of Banco Santander Norchem Holding e Negócios S.A. (1) Other Activities Brazil 21.75% 21.75% 21.75% Investments 2018 2017 2016 Jointly Controlled by Banco Santander 613,366 495,264 578,761 Banco RCI Brasil S.A. 458,292 427,801 538,756 Norchem Participações e Consultoria S.A. 26,105 25,550 26,302 Cibrasec - Companhia Brasileira de Securitização 7,298 7,438 7,435 Estruturadora Brasileira de Projetos S.A. - EBP 3,690 4,707 6,268 Gestora de Inteligência de Crédito 59,098 29,513 - Campo Grande Empreendimentos 255 255 - Banco Hyundai Capital Brasil S.A. (former named BHJV Assessoria e Consultoria Empresarial Ltda.) 51,073 - - Santander Auto S.A. 7,555 - - Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações SA) 419,016 350,440 390,336 Webmotors S.A. 273,721 197,930 246,965 Tecnologia Bancária S.A. - TECBAN 144,090 151,019 142,713 PSA Corretora de Seguros e Serviços Ltda. 1,205 1,491 658 Significant Influence of Banco Santander 20,933 20,860 20,980 Norchem Holding e Negócios S.A. 20,933 20,860 20,980 Total 1,053,315 866,564 990,077 Results of Investments 1/01 to 12/31/2018 1/01 to 12/31/2017 1/01 to 12/31/2016 Jointly Controlled by Banco Santander 41,212 39,904 16,748 Banco RCI Brasil S.A. 46,244 44,384 14,175 Norchem Participações e Consultoria S.A. 1,120 1,333 2,637 Cibrasec - Companhia Brasileira de Securitização 193 389 366 Estruturadora Brasileira de Projetos S.A. - EBP (1,017) (1,560) (430) Gestora de Inteligência de Crédito (6,466) (4,642) - Banco Hyundai Capital Brasil S.A. (former named BHJV Assessoria e Consultoria Empresarial Ltda.) 1,083 - - Santander Auto S.A. 55 - - Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações SA) 24,161 30,430 29,538 Webmotors S.A. 30,626 21,290 23,019 Tecnologia Bancária S.A. - TECBAN (6,929) 8,307 5,971 PSA Corretora de Seguros e Serviços Ltda. 464 833 548 Jointly Controlled by Getnet S.A. - - (225) iZettle do Brasil Meios de Pagamento S.A. - - (225) Significant Influence of Banco Santander 585 1,217 1,476 Norchem Holding e Negócios S.A. 585 1,217 1,476 Total 65,958 71,551 47,537 2018 Total assets Total liabilities Total Income (11) Jointly Controlled by Banco Santander 10,500,055 8,755,688 80,954 Banco RCI Brasil S.A. 9,849,508 8,679,715 115,928 Norchem Participações e Consultoria S.A. 79,633 27,423 2,240 Cibrasec - Companhia Brasileira de Securitização 80,300 3,893 1,989 Estruturadora Brasileira de Projetos S.A. - EBP 33,389 176 (9,151) Gestora de Inteligência de Crédito 338,382 42,894 (32,328) Banco Hyundai Capital Brasil S.A. (former named BHJV Assessoria e Consultoria Empresarial Ltda.) 103,703 1,557 2,166 Santander Auto S.A. 15,140 30 110 Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações SA) 2,463,262 1,573,082 9,703 Webmotors S.A. 221,313 60,905 43,751 Tecnologia Bancária S.A. - TECBAN 2,238,156 1,510,794 (34,976) PSA Corretora de Seguros e Serviços Ltda. 3,793 1,383 928 Significant Influence of Banco Santander 123,959 27,714 2,690 Norchem Holding e Negócios S.A. 123,959 27,714 2,690 Total 13,087,276 10,356,484 93,347 2017 Total assets Total liabilities Total Income (11) Jointly Controlled by Banco Santander 9,432,738 8,043,604 43,866 Banco RCI Brasil S.A. 9,057,261 7,985,647 74,452 Norchem Participações e Consultoria S.A. 78,674 27,574 2,665 Cibrasec - Companhia Brasileira de Securitização 86,378 9,884 4,000 Estruturadora Brasileira de Projetos S.A. - EBP 42,627 264 (14,040) Gestora de Inteligência de Crédito 167,798 20,235 (23,211) Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações SA) 1,967,989 1,077,782 74,861 Webmotors S.A. 490,458 50,413 31,264 Tecnologia Bancária S.A. - TECBAN 1,472,774 1,025,593 41,932 PSA Corretora de Seguros e Serviços Ltda. 4,757 1,776 1,665 Significant Influence of Banco Santander 122,176 26,267 5,597 Norchem Holding e Negócios S.A. 122,176 26,267 5,597 Total 11,522,903 9,147,653 124,324 2016 Total assets Total liabilities Total Income (11) Jointly Controlled by Banco Santander 8,831,611 7,318,656 89,544 Banco RCI Brasil S.A. 8,603,844 7,276,320 79,223 Norchem Participações e Consultoria S.A. 78,833 26,228 5,274 Cibrasec - Companhia Brasileira de Securitização 91,083 14,659 7,011 Estruturadora Brasileira de Projetos S.A. - EBP 57,851 1,449 (1,964) Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações SA) 1,459,826 943,028 58,595 Webmotors S.A. 145,499 35,231 29,934 Tecnologia Bancária S.A. - TECBAN 1,310,945 905,731 27,568 PSA Corretora de Seguros e Serviços Ltda. 3,382 2,066 1,093 Significant Influence of Banco Santander 127,598 31,136 6,792 Norchem Holding e Negócios S.A. 127,598 31,136 6,792 Total 10,419,035 8,292,820 154,931 b) Changes The changes in the balance of this item were as follows: 2018 2017 2016 Jointly Controlled by Banco Santander Balance at beginning of year 845,704 969,097 1,041,239 Additions / disposals (net) due to change in the scope of consolidation - - (2,926) Additions /disposals (2) (5) 119,557 34,154 3,105 Capital reduction (6) 36,051 - (76,860) Share of results of entities accounted for using the equity method 65,373 70,334 46,061 Dividends proposed/received (35,351) (200,620) (39,424) Others 1,048 (27,261) (2,098) Balance at end of year 1,032,382 845,704 969,097 Significant Influence of Banco Santander Balance at beginning of year 20,860 20,980 19,504 Share of results of entities accounted for using the equity method 585 1,217 1,476 Dividends proposed/received (512) (1,337) - Balance at end of year 20,933 20,860 20,980 (1) Companies with a delay of one month for the equity calculation. To register the equity income it was used on 12/31/2018 the position of 11/30/2018. (2) In June 2016 the interest held in iZetlle do Brasil S.A was sold. (3) At the ESM held on April 29, 2016 was approved the reform in the distribution structure of the capital of Cibrasec through the creation of preferred shares issued by the Company with voting rights and the share conversion of the common shares of Company into preferred shares, this reform was ratified at the ESM held on May 30, 2016. Banco Santander became part of their ordinary shares held in the capital of Cibrasec, the corresponding amount to 5,000 (five thousand) common shares issued by Cibrasec 50 (fifty) preferred shares in the proportion of 100 (one hundred) common shares for each one (1) preferred share, and still held 4,000 (four thousand) common shares in the capital of Cibrasec. Each preferred share entitles the holder the right to 100 (one hundred) times the right to dividends of the common shares, so that the economic rights were maintained, however, the conversion resulted in reduction in the percentage shareholding in Cibrasec. (4) Company incorporated in April 2017 and is in the pre-operational phase. Pursuant to the shareholders' agreement, control is shared between shareholders who hold 20% of their capital stock each. At the Extraordinary General Meeting held on July 6, 2017, the capital increase of Gestora de Crédito was approved in the total amount of R$65,822, so that the capital stock increased from R$1 to R$65,823, through the issue of 6,582,200 (six million, five hundred and eighty-two thousand and two hundred) new shares, of which 3,291,100 (three million, two hundred and ninety-one thousand and one hundred), 1,316,440 (one million, three hundred and sixteen thousand, four hundred and forty) preferred shares Class A and 1,316,440 (one million, three hundred and sixteen thousand, four hundred and forty) preferred shares Class B and 658,220 (six hundred and fifty eight thousand, two hundred and twenty) class C preferred shares, with no par value, at the issue price of R$10.00, corresponding to the equity value of the shares. The shares issued in the capital increase were fully subscribed on the same date by the shareholders in the proportion of 20% of their capital stock each. (5) In 2017 refers to the incorporation of Gestora de Inteligência de Crédito - partnership between Banco Santander and other banks from brazilian market (according to note 3.d) and in 2016 refers to the acquisition agreement of part of the financial operations from the Group PSA in Brazil and the consequent creation of a Joint Venture. (6) At the ESM realized in September 26, 2016, was approved the reduction of the capital of Webmotors S.A. without cancellation of shares in the amount of R$109,800 to be considered excessive to maintain its activities, and the capital of R$194,580 to R$84,780. (7) On December 30, 2016, at the EGM of Webmotors S.A., the merger and the Private Instrument of Protocol and Justification of Incorporation of Virtual Motors by Webmotors S.A. were approved, so that Webmotors S.A. received, for its accounting value, based on the balance sheet drawn up on November 30, 2016, all of the assets, rights and obligations of Virtual Motors, with the extinction of Virtual Motors that will be succeeded by Webmotors S.A. in all its rights and obligations. (8) Although the participations was less than 20%, the Bank exercises control over the entity together with other major stockholders' through a stockholders' agreement where no business decision can be taken by a single shareholder. (9) At the EGM held in October 5, 2017, it was approved the share capital increase of the Gestora de Crédito in the amount of R$285,205, that way its share capital increased from R$65,823 to R$351,028, through the issuance of 29,013,700 new shares, being 14,506,850 as ordinary shares, 5,802,740 preferred shares Class A, 5,802,740 preferred shares Class B, and 2,901,370 preferred shares Class C, without par value, at the issuance price of R$ 9,83 per share. It was also approved by unanimous decision the payment timetable of the new shares issuance made by the Management of Gestora de Crédito. That way, the share capital increase was fully subscribed at the same day by the shareholders in the proportion of 20% of each interest which were partially paid. (10) According to its Bylaws, EBP was formed in order to carry out projects to contribute for the brazilian economic and social development for the period of 10 years. After the conclusion of the timetable set EPB closes its activities this year of 2018. The dissolution of its rights and liquidation were aproved in the EGM held on january 29, 2018. (11) Although participation exceeds 50%, in accordance with the shareholders' agreement, the control is shared by Santander Corretora de Seguros (Current corporate name of Santander Participações S.A.), and Carsales.com. Investments PTY LTD (Carsales), shareholder based in Australia. (12) Pursuant to the shareholders' agreement, the control is shared by Santander Corretora de Seguros (current corporate name of Santander Participações SA) and PSA Services LTD. (13) In December 2017, according to the contractual change, the PSA Corretora de Seguros shareholders decided to increase its share capital in R$401, that way the share capital increased from R$ 500 to R$901, through the issuance of 400,532 new shares, which each new share has the value of R$1. The new shares issued were subscribed and paid at the same date, in local currency, according to the proportion of each shareholder equivalent to 50% to the company´s share capital, that is, 200.266 shares. (15) Participation resulting from the credit recovery from the Banco Comercial and Investimentos Sudameris S.A. incorporated in 2009 by Banco ABN AMRO Real S.A., which in the same year was incorporated into the Banco Santander (Brasil) S.A., one of the Company partner. The partners are conducting the procedures for extinction of the company, whose depends on the sale of a property. Once it has been sold, the liquidation of the company and each partner will receive its share of the equity. (16) Company incorporated on December 13, 2018, upon transformation of BHJV Assessoria e Consultoria em Gestão Empresarial Ltda. Aymoré CFI, a wholly-owned subsidiary of Banco Santander, holds the company's operational control. (Note 3.i). (17) Insurance company incorporated on October 9, 2018, through transformation of the corporate vehicle L.G.J.S.P.E. Empreendimentos e Participações S.A., submitted to Susep to obtain authorization to operate. In accordance with the shareholders' agreement, the control is shared by Sancap and HDI Seguros S.A., (Note 3.g). (*) The Bank does not have collateral with associates and joint ventures. (**) The Bank does not have contingent liabilities with significant risk of loss as possible related to investments in affiliates with joint control and significant influence. (***) As of December 31, 2018, 2017 and 2016, the balances of Assets, Liabilities and Profit refer to 100% of the company balance sheet. There is no balance for the caption "Other Comprehensive Income" in these companies, except for the RCI Bank which recorded R$30,358 (2017- R$40,671 and 2016 - R$5,621). c) Impairment losses No impairment losses were recognized on investments in associates and joint ventures in 2018, 2017 and 2016. d) Other information Details of the principal jointly controlled entities: Banco RCI Brasil S.A.: A company incorporated in the form of corporation headquartered in Parana which is primarily engaged in the practice of leasing, credit operations, financing and investment, in order to sustain the growth of automotive brands Renault and Nissan in the Brazilian market by providing credit and leasing operations to the final client. It is a financial institution that is part of the RCI Banque Group and the Santander Group, with operations conducted as part of a set of institutions that operate in the financial market. According to the Shareholders' Agreement, the key decisions that impact this partnership are taken jointly between Banco Santander and other controllers. On July 21, 2015 the Company's transformation into a Multiple Bank was approved, with investment portfolios, leasing and credit, financing and investment and also the change of company name of Companhia de Arrendamento Mercantil RCI Brasil to Banco RCI Brasil S.A. This process was approved by Bacen on October 28, 2015. On January 29, 2016, the Companhia de Crédito, Financiamento e Investimento RCI Brasil was merged into its subsidiary Banco RCI Brasil S.A., with this process the interest previously held by RCI Brasil was transferred to Banco Santander. Webmotors S.A.: A company incorporated in the form of private limited company with headquarters in São Paulo which is engaged in the design, implementation and / or availability of electronic catalogs, space, products, services or means of marketing products and / or services related to the automotive industry, on the Internet or other means related to e-commerce activities and other Internet uses or applications, as well as the participation in capital in other companies and the management of related business. It is a company of the Economic Conglomerate - Financial Santander (Santander Group) and Carsales.com Investments PTY LTD (Carsales), which its operations are conducted as part of a group of institutions that operate jointly. According to the Shareholders' Agreement, the key decisions that impact this partnership are taken jointly between Banco Santander and other controllers. 2018 2017 2016 Banco RCI Brasil Webmotors Banco RCI Brasil Webmotors Banco RCI Brasil Webmotors Current assets 9,849,508 221,313 9,057,261 490,458 8,603,844 145,499 Current liabilities 8,679,715 60,905 7,985,647 50,413 7,276,320 35,231 Cash and cash equivalents 37,115 1,034 47,782 1,989 23,612 1,663 Depreciation and amortization (977) (7,423) (1,600) 16,353 (911) (12,295) Revenue 1,316,687 167,881 1,315,695 127,064 1,575,550 135,242 Interest income 1,290,703 4,134 1,294,119 7,178 1,368,643 28,047 Interest expense (575,944) - (626,654) - (903,061) - Tax Income / (expense) (147,266) (16,013) (122,544) (12,568) (3,326) (13,370) Current financial liabilities (excluding trade and other payables and provisions) 3,130,908 49,709 3,897,010 33,320 3,629,575 31,707 Non-current financial liabilities (excluding trade and other payables and provisions) 4,813,909 5,458 4,058,986 3,247 3,646,745 1,736 |
Tangible assets
Tangible assets | 12 Months Ended |
Dec. 31, 2018 | |
Tangible assets [Abstract] | |
Tangible assets | 12. Tangible assets Tangible assets of the Bank relate to property, plant and equipment for the its own use. The Bank does not have tangible assets held as investment property nor leased out under operating leases. The Bank is also not a part of any financial lease contracts as of and during fiscal years ended December 31, 2018, 2017 and 2016. a) Breakdown The detail, by class of asset, of the tangible assets in the consolidated balance sheets is as follows: Thousand of reais Cost Land and buildings IT equipment and fixtures Furniture and vehicles Others Total Balance at December 31, 2015 2,724,859 3,150,747 7,363,491 3,759 13,242,856 Additions 3,024 154,852 715,264 - 873,140 Additions resulting mergers - 2,021 3,961 - 5,982 Write-off (29,174) (15,011) (141,442) - (185,627) Change in scope of consolidation - 45 257 - 302 Transfers 12,484 74,361 (82,650) - 4,195 Balance at December 31, 2016 2,711,193 3,367,015 7,858,881 3,759 13,940,848 Additions - 382,571 723,835 - 1,106,406 Write-off (52,102) (180,036) (31,053) - (263,191) Transfers (9,779) 718,666 (721,520) - (12,633) Balance at December 31, 2017 2,649,312 4,288,216 7,830,143 3,759 14,771,430 Additions 2,534 449,489 941,895 381 1,394,299 Write-off (18,230) (162,497) (199,877) - (380,604) Transfers 45,663 32,232 640,758 (3,759) 714,894 Additions by Company Acquisition - 1,368 463 - 1,831 Change in scope of consolidation 99,759 19,517 17,749 1,302 138,327 Balance at December 31, 2018 2,779,038 4,628,325 9,231,131 1,683 16,640,177 Accumulated depreciation Balance at December 31, 2015 (531,546) (2,092,880) (3,602,731) - (6,227,157) Additions (82,963) (387,855) (683,770) - (1,154,588) Additions resulting mergers - (1,594) (1,234) - (2,828) Write-off 13,999 13,092 121,338 - 148,429 Change in scope of consolidation - (26) (76) - (102) Transfers 6,300 (39,836) (5,761) - (39,297) Balance at December 31, 2016 (594,210) (2,509,099) (4,172,234) - (7,275,543) Additions (81,910) (499,542) (609,515) - (1,190,967) Write-off 37,136 154,471 22,196 - 213,803 Transfers 9,734 (437,527) 427,506 - (287) Balance at December 31, 2017 (629,250) (3,291,697) (4,332,047) - (8,252,994) Additions (82,714) (484,629) (649,361) - (1,216,704) Write-off 8,816 140,332 109,447 - 258,595 Transfers (52,094) (76,292) (631,965) - (760,351) Additions by Company Acquisition - (978) (196) - (1,174) Change in scope of consolidation (5,602) (1,448) (7,136) - (14,186) Balance at December 31, 2018 (760,844) (3,714,712) (5,511,258) - (9,986,814) Losses from non-recovery (impairment) Balance at December 31, 2015 (9,785) - - - (9,785) Impacts on results (3,246) - (5,841) - (9,087) Write-off 23,588 - - - 23,588 Balance at December 31, 2016 10,557 - (5,841) - 4,716 Impacts on results 9,784 - 1,047 - 10,831 Transfers - - (512) - (512) Balance at December 31, 2017 20,341 - (5,306) - 15,035 Impacts on results (10,607) - (49,556) - (60,163) Transfers (5) - 4,333 - 4,328 Balance at December 31, 2018 9,729 - (50,529) - (40,800) Carrying amount Balance at December 31, 2016 2,127,540 857,916 3,680,806 3,759 6,670,021 Balance at December 31, 2017 2,040,403 996,519 3,492,790 3,759 6,533,471 Balance at December 31, 2018 2,027,923 913,613 3,669,344 1,683 6,612,563 The depreciation expenses has been included in the heading “Depreciation and amortization” in the income statement. b) Tangible asset purchase commitments On December 31, 2018 the Bank has contractual commitments for the acquisition of tangible assets amount of R$3.2 million (2017 - R$75.0 million and 2016 R$9.1 million). |
Intangible assets - Goodwill
Intangible assets - Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Intangible assets - Goodwill [Abstract] | |
Intangible assets - Goodwill | 13. Intangible assets - Goodwill Goodwill is the difference between the acquisition cost and the Bank's participation in the net fair value of assets, liabilities and contingent liabilities of the acquired company. When the difference is negative (negative goodwill), it is recognized immediately through income statement. In accordance with IFRS 3 Business Combinations, goodwill is stated at cost and is not amortized but tested annually for impairment or whenever there is an evidence of reduction on the recoverable value of the cash generating unit to which the goodwill was allocated. Goodwill is recognized at cost considering the accumulated impairment losses. Impairment losses related to goodwill are not reversible. Gains and losses related to the sale of an entity include the carrying amount of goodwill relating to the entity sold. The goodwill recorded is subject to impairment test (note 2.o.i) and has been allocated according to the operating segments (note 45). Based on the assumptions described above, no impairment loss was recognized for goodwill at December 31, 2018, 2017 and 2016. Thousand of reais 2018 2017 2016 Breakdown Banco ABN Amro Real S.A. (Banco Real) 27,217,565 27,217,565 27,217,565 Olé Consignado (Current Company name of Banco Bonsucesso Consignado) 62,800 62,800 62,800 Super Pagamentos e Administração de Meios Eletrônicos Ltda. (Super) 13,050 13,050 13,050 Banco PSA Finance Brasil S.A. 1,557 1,557 - Getnet Adquirência e Serviços para Meios de Pagamento S.A. (Santander Getnet) 1,039,304 1,039,304 1,039,304 BW Guirapá I S.A. - - 22,320 Ipanema Empreendimentos e Participações Ltda. 27,630 28,120 - Santander Brasil Tecnologia S.A. 16,382 - - Others - 1,860 - Total 28,378,288 28,364,256 28,355,039 Commercial Banking 2018 2017 2016 Main assumptions: Basis of determining recoverable amounts Value in use: cash flows Period of the projections of cash flows (1) 5 years 5 years 5 years Growth rate perpetual 5.1% 8.3% 8.0% Discount rate (2) 13.6% 14.6% 15.2% (1) The projections of cash flow are prepared using Management´s growth plans and internal budget, based on historical data, market expectations and conditions such as industry growth, interest rate and inflation. (2) The discount rate is calculated based on the capital asset pricing model (CAPM). The discount rate before tax is 19.33% ( 2017 - 20.42% and 2016 - 20.23%). The changes of goodwill in December 31, 2018, 2017 and 2016 were as follows: Thousand of reais 2018 2017 2016 Balance at beginning of the year 28,364,256 28,355,039 28,332,719 Additions (loss): BW Guirapá (Note 3.c) - (22,320) 22,320 Banco PSA Finance Brasil S.A. - 1,557 - Ipanema Empreendimentos e Participações Ltda. (490) 28,120 - Santander Brasil Tecnologia S.A. 16,382 - - Others (1,860) 1,860 - Balance at end of the year 28,378,288 28,364,256 28,355,039 |
Intangible assets - Other intan
Intangible assets - Other intangible assets | 12 Months Ended |
Dec. 31, 2018 | |
Intangible assets - Other intangible assets [Abstract] | |
Intangible assets - Other intangible assets | 14. Intangible assets - Other intangible assets The details by asset category of the "other intangible assets" of the consolidated financial statements are as follow: Cost IT developments Other assets Total Balance at December 31, 2015 5,202,500 397,716 5,600,216 Additions 652,490 18,395 670,885 Additions resulting mergers 250 89 339 Write-off (450) (10,202) (10,652) Additions / disposals (net) due to change in the scope of consolidation 4 - 4 Transfers 12,150 - 12,150 Balance at December 31, 2016 5,866,944 405,998 6,272,942 Additions 824,411 12,072 836,483 Write-off (125,307) (7,096) (132,403) Transfers 4,633 - 4,633 Balance at December 31, 2017 6,570,681 410,974 6,981,655 Additions 804,782 137 804,919 Write-off (477,434) (40) (477,474) Transfers 11,567 - 11,567 Additions resulting mergers 590 - 590 Additions / disposals (net) due to change in the scope of consolidation 87 - 87 Balance at December 31, 2018 6,910,273 411,071 7,321,344 Accumulated amortization IT developments Other assets Total Balance at December 31, 2015 - (2,848,994) (266,779) (3,115,773) Additions (304,046) (24,005) (328,051) Additions resulting mergers (249) - (249) Write-off 141 10,202 10,343 Additions / disposals (net) due to change in the scope of consolidation (1) - (1) Transfers 32,167 3,427 35,594 Balance at December 31, 2016 (3,120,982) (277,155) (3,398,137) Additions (449,709) (21,571) (471,280) Write-off 854 5,500 6,354 Transfers 17,402 464 17,866 Balance at December 31, 2017 (3,552,435) (292,762) (3,845,197) Additions (504,009) (19,246) (523,255) Write-off 25,242 - 25,242 Transfers (1,000,893) 58 (1,000,835) Additions resulting mergers (583) - (583) Additions / disposals (net) due to change in the scope of consolidation (15) - (15) Balance at December 31, 2018 (5,032,693) (311,950) (5,344,643) Losses from non-recovery (Impairment) - IT Balance at December 31, 2015 (994,802) - (8,698) (1,003,500) Impact on net profit (1) 898 (6,736) (5,838) Write-off 16,193 143 16,336 Balance at December 31, 2016 (977,711) (15,291) (993,002) Impact on net profit (306,110) - - (306,110) Transfers 441 - 441 Balance at December 31, 2017 (1,283,380) (15,291) (1,298,671) Impact on net profit (1) (300,865) - (300,865) Write-off 1,263,535 - 1,263,535 Balance at December 31, 2018 (320,710) (15,291) (336,001) Carrying amount Balance at December 31, 2016 1,768,251 113,552 1,881,803 Balance at December 31, 2017 1,734,866 102,921 1,837,787 Balance at December 31, 2018 1,556,870 83,830 1,640,700 (1) In 2018, it refers to impairment loss of assets in the acquisition and development of software. The loss in the acquisition and development of software was recorded due to obsolescence function and disruption of these systems. The amortization expenses has been included in the heading “Depreciation and amortization” in the income statement. |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2018 | |
Other assets [Abstract] | |
Other assets | 15. Other assets The breakdown of the balance of “Other assets” is as follows: Thousand of reais 2018 2017 2016 Customer relationships 1,674,187 1,679,305 1,197,278 Prepayments and accrued income 685,755 784,456 690,814 Contractual guarantees of former controlling stockholders (Note 23.c.5) 605,638 707,130 814,925 Actuarial asset (Note 22) 273,281 198,189 153,662 Other receivables (1) 1,561,606 1,209,190 2,247,333 Total 4,800,467 4,578,270 5,104,012 (1) Corresponds mainly to receivables from third parties. |
Deposits from the Brazilian Cen
Deposits from the Brazilian Central Bank and Deposits from credit institutions | 12 Months Ended |
Dec. 31, 2018 | |
Deposits from the Brazilian Central Bank and Deposits from credit institutions [Abstract] | |
Deposits from the Brazilian Central Bank and Deposits from credit institutions | 16. Deposits from the Brazilian Central Bank and Deposits from credit institutions The breakdown, by classification, type and currency, of the balances of these items is as follows: Thousand of reais 2018 2017 2016 Classification: Financial liabilities at amortized cost 99,022,806 79,374,685 78,634,072 Total 99,022,806 79,374,685 78,634,072 Type: Deposits on demand (1) 709,605 306,081 314,112 Time deposits (2) 47,227,456 52,739,163 49,548,858 Repurchase agreements 51,085,745 26,329,441 28,771,102 Of which: Backed operations with Private Securities (3) 6,977,766 - 446,429 Backed operations with Government Securities 44,107,979 26,329,441 28,324,673 Total 99,022,806 79,374,685 78,634,072 Thousand of reais 2018 2017 2016 Currency: Reais 74,159,613 56,562,950 51,339,830 Euro 105,119 407,814 576,994 US dollar 24,758,074 22,156,054 26,546,404 Other currencies - 247,867 170,844 Total 99,022,806 79,374,685 78,634,072 (1) Non-interest bearing accounts. (2) It includes the operation with credit institution arising from export and import financing lines, BNDES and Finame on-lending and abroad and other credit lines abroad. (3) Refers primarily to repurchase agreements backed by own-issued debentures. |
Client deposits
Client deposits | 12 Months Ended |
Dec. 31, 2018 | |
Client deposits [Abstract] | |
Client deposits | 17. Client deposits The breakdown, by classification and type, of the balance of “Customer deposits” is as follows: Thousand of reais 2018 2017 2016 Classification: Financial liabilities at amortized cost 304,197,800 276,042,141 247,445,177 Total 304,197,800 276,042,141 247,445,177 Type: Demand deposits Current accounts (1) 18,853,519 17,559,985 15,868,201 Savings accounts 46,068,346 40,572,369 36,051,476 Time deposits 190,982,541 146,817,650 94,478,875 Repurchase agreements 48,293,394 71,092,137 101,046,625 Of which: Backed operations with Private Securities (2) 6,977,766 33,902,890 59,460,210 Backed operations with Government Securities 41,315,628 37,189,247 41,586,415 Total 304,197,800 276,042,141 247,445,177 (1) Non-interest bearing accounts. (2) Refers primarily to repurchase agreements backed by own-issued debentures. Note 44-d contains a detail of the residual maturity periods of financial liabilities at amortized cost. |
Marketable debt securities
Marketable debt securities | 12 Months Ended |
Dec. 31, 2018 | |
Marketable debt securities [Abstract] | |
Marketable debt securities | 18. Marketable debt securities The breakdown, by classification and type, of the balance of “Marketable debt securities” is as follows: Thousand of reais 2018 2017 2016 Classification: Financial liabilities at amortized cost 74,626,232 70,247,012 99,842,955 Total 74,626,232 70,247,012 99,842,955 Type: Real estate credit notes - LCI (1) 27,159,982 27,713,873 23,983,429 Eurobonds 4,516,647 1,992,828 7,721,646 Treasury Bills (2) 30,721,206 31,686,259 61,157,037 Agribusiness credit notes - LCA 11,925,018 8,854,052 6,980,843 Guaranteed Real Estate Credit Notes (3) 303,379 - - Total 74,626,232 70,247,012 99,842,955 Indexers: Domestic Abroad Treasury Bills 97% to 106% of CDI - 100% of IGPM - 100% of IPCA - Pre fixed: 6.04% to 17.46% - 105,5% of SELIC - Real estate credit notes - LCI 73% to 9.,5% of CDI - Pre fixed: 7,3% of 14% - 100% of IPCA - 100% of TR - Agribusiness credit notes - LCA 84% to 96% of CDI - Guaranteed Real Estate Credit Notes - LIG 95% to 98% of CDI Eurobonds - 0.9% to 9% (1) Real Estate Credit Notes are fixed income securities pegged by mortgages and mortgage-backed securities or liens on property. On December 31, 2018, have maturities between 2019 and 2026 (2017 - there are maturities between 2018 to 2026 and 2016 - there are maturities between 2017 to 2026). (2) The main features of the Treasury Bills are the minimum period of two years, minimum notional of R$300 and permission for early redemption of only 5% of the issued amount. On December 31, 2018, have a maturity between 2019 to 2025 (2017 - have a maturity between 2018 to 2025 and 2016 - there are maturities between 2017 to 2025). (3) Guaranteed Real Estate Letters are real estate investment securities guaranteed by the issuer and by a pool of real estate credits separated from the other assets of the issuer. As of December 31, 2018 maturity until 2021. The breakdown, by currency, of the balance of this account is as follows: Thousand of reais Currency: 2018 2017 2016 Real 70,109,585 68,335,103 92,132,195 US dollar 4,516,647 1,911,909 7,645,542 Euro - - 65,218 Total 74,626,232 70,247,012 99,842,955 Average interest (%) Currency: 2018 2017 2016 Real 5.5% 5.5% 11.7% US dollar 5.9% 6.8% 3.7% Total 5.6% 5.7% 11.3% The changes in the balance of Marketable debt instruments were as follows: Thousand of reais 2018 2017 2016 Balance at beginning of the year 70,247,012 99,842,955 94,658,300 Issuances 73,765,081 59,663,420 50,313,469 Payments (78,903,009) (97,009,957) (56,164,769) Interest (Note 33) 4,606,949 7,901,199 12,212,922 Exchange differences and Others 4,910,199 (150,605) (1,305,204) Additions arising from acquisitions of companies - - 128,237 Balance at end of the year 74,626,232 70,247,012 99,842,955 On December 31, 2018, 2017 and 2016, none of these instruments was convertible into Bank shares or granted privileges or rights which, in certain circumstances, make them convertible into shares. The note 44-d contains a detail of the residual maturity periods of financial liabilities at amortized cost in each year. The breakdown of "Bonds and other securities" is as follows: Interest rate (p.y) Issuance Maturity Currency 2018 2017 2016 Eurobonds 2007 2017 BRL FIDC - - 1,930 Eurobonds 2016 2017 USD 0,7% to 2,5% - - 3,408,932 Eurobonds 2012 2017 USD 4.6% - - 4,116,309 Eurobonds 2017 2018 USD Zero Coupon to 2,4% - 1,195,668 - Eurobonds 2017 2019 USD Libor 3M + 1,0% 194,243 165,677 - Eurobonds 2018 2019 USD Zero Coupon to 9% 855,035 - - Eurobonds 2018 2019 USD Libor 3M + 0,95% 19,386 - - Eurobonds 2018 2019 USD Libor 1M + 1,5% 197,055 - - Eurobonds 2018 2019 USD 3.5% 34,776 - - Eurobonds 2018 2019 USD 6,6% to 6,7% 1,211,361 - - Eurobonds 2018 2019 USD 9.0% 1,287,821 - - Eurobonds 2017 2024 USD 6,9% to 10,0% 639,275 541,487 - Others 77,695 89,996 194,475 Total 4,516,647 1,992,828 7,721,646 |
Subordinated liabilities
Subordinated liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Subordinated liabilities [Abstract] | |
Subordinated liabilities | 19. Subordinated liabilities The detail of the balance of “Subordinated liabilities” is as follows: Thousand of reais Issuance Maturity (1 ) Amount (millions) Interest rate 2018 2017 2016 Subordinated Liabilities May-08 May-15 to May-18 R$283 CDI (2) - 109,572 98,378 Subordinated Liabilities May-08 to June-08 May-15 to June-18 R$268 IPCA (3) - 409,658 367,868 Notes (4) January-14 Perpetual R$3.000 7.375% 4,906,880 - - Notes (4) January-14 January-24 R$3.000 6.000% 4,978,728 - - Total 9,885,608 519,230 466,246 (1) Subordinated time deposits issued by Banco Santander S.A. with yield paid at the end of the term together with the principal. (2) Between December 2017 and May 2018, indexed by 100% and 112% of the CDI. (3) Between December 2017 and June 2018, indexed by the IPCA (extended consumer price index) plus interest of 8.3% p.a. to 8.4% p.a. (4) On December 18, 2018, the Bank Central of Brazil issued approval for the repurchase of the notes issued on January 29, 2014, this approval led to the reclassification of these instruments from the Debt Instruments Eligible to Compose Capital to Subordinated Debt (Note 20). The detail by currency, of the balance of “Subordinated liabilities” is as follows: Thousand of reais Average Interest Rate (%) Currency: 2018 2017 2016 2018 2017 2016 Real 9,885,608 519,230 466,246 4.9% 7.5% 9.6% Total 9,885,608 519,230 466,246 4.9% 7.5% 9.6% Changes in the balance of "Subordinated liabilities" in twelve-months period ended December 31, 2018, 2017 and 2016 were as follows: 2018 2017 2016 Balance at beginning of year 519,230 466,246 8,097,304 Payments (544,566) - (8,362,652) Interest (Note 33) 25,336 52,984 731,594 Transfers (Note 20) 9,885,608 - - Balance at end of year 9,885,608 519,230 466,246 Note 44-d contains a detail of the residual maturity periods of subordinated liabilities at each year-end in each year. |
Debt Instruments Eligible to Co
Debt Instruments Eligible to Compose Capital | 12 Months Ended |
Dec. 31, 2018 | |
Debt Instruments Eligible to Compose Capital [Abstract] | |
Debt Instruments Eligible to Compose Capital | 20. Debt Instruments Eligible to Compose Capital Details of the balance of "Debt Instruments Eligible to Compose Capital" for the issuance of such instruments to compose the Tier I and Tier II of regulatory capital due to the Regulatory Capital Optimization Plan (Note 28.e), are as follows: 2018 2017 2016 Issuance Maturity Issuance Value Interest Rate (p.a.) (3) Tier I (1) (5) jan-14 no maturity (perpetual) R$3,000 7.375% - 4,187,531 4,125,557 Tier II (2) (5) jan-14 jan-24 R$3,000 6.000% - 4,249,370 4,186,361 Tier I (4) nov-18 no maturity (perpetual) US$1,250 7.250% 4,893,668 - - Tier II (4) nov-18 nov-28 US$1,250 6.125% 4,886,276 - - Total 9,779,944 8,436,901 8,311,918 (1) Notes repurchased in 2019; As authorized by Bacen on December 17, 2018, as of the date of their issuance, Level I and II of RC must be excluded. (2) Notes repurchased in 2019; As authorized by Bacen on December 17, 2018, as of the date of their issuance, Level I and II of RC must be excluded. (3) The debts of January 2014 were made by Banco Santander in Brazil, therefore, as Income Tax at source assumed by the issuer, in the form of a corresponding exchange rate, is 8.676% and 7.059% for the instruments Level I and Level II, respectively. The emissions generated from November 2018 were made through the Cayman Agency and, consequently, there is no incidence of Income Tax at Source. (4) Interest paid semiannually, as of May 8, 2019. (5) On December 18, 2018, the Central Bank of Brazil issued the approval for the repurchase of the notes issued on January 29, 2014, this approval led to the reclassification of these instruments from the Debt Instruments Eligible to Compose Capital to Subordinated Debt (Note 19). Changes in the balance of "Debt Instruments Eligible to Compose Capital" in twelve-months period ended December 31, 2018, 2017 and 2016 were as follows 2018 2017 2016 Balance at beginning of the year 8,436,901 8,311,918 9,959,037 Emission of interest - Tier I 4,673,875 - - Emission of interest - Tier II 4,673,875 - - Interest payment Tier I (1) 331,677 273,123 276,587 Interest payment Tier II (1) 272,539 222,065 225,161 Exchange differences / Others 1,960,467 252,941 (1,447,196) Payments of interest - Tier I (381,008) (344,867) (379,039) Payments of interest - Tier II (302,775) (278,279) (322,632) Transfers (9,885,607) - - Balance at end of the year 9,779,944 8,436,901 8,311,918 (1) The remuneration of interest relating to the Debt Instruments Eligible to Compose Capital Tier I and II was recorded against income for the period as "Interest expense and similar charges" (Note 33). On November 5, 2018, the Board of Directors approved the issuance of the equity instruments, which was held on November 8, 2018. Such issuance was in the form of Notes issued in US dollars, US$2.5 billion, for payment in Tier I and Tier II of Reference Equity. The offer of these notes was made outside Brazil and the United States of America, for non-US Persons, based on Regulation S under the Securities Act, and was fully paid in by Santander España, controlling shareholder of Banco Santander Brasil. On the same date, the Board of Directors approved the redemption of the Tier I and Tier II notes issued on January 29, 2014, in the total amount of U$2.5 billion (Note 26.e). The specific characteristics of Notes issued to make up Tier I are: (a) Principal: US$1.250 billion (b) Interest Rate: 7.25% p.a; (c) no maturity (perpetual); (d) Periodicity of payment of interest: semiannually from May 8, 2019. The specific characteristics of Notes issued to make up Tier II are: (a) Principal: US$1.250 billion; (b) Interest Rate: 6.125% p.a.; (c) Maturity Term: on November 8, 2028; and (d) Periodicity of payment of interest: semiannually, as of May 8, 2019. 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 fifth anniversary as of the date of issue of the Notes, at the sole discretion of the Bank or as a result of changes in the tax legislation applicable to the Notes; or at any time, due to the occurrence of certain regulatory events. On December 18, 2018, the Bank issued approval for the Notes to comprise Tier I and Tier II of Banco Santander's Reference Equity as of such date, as well as the repurchase of the notes issued on January 29, 2014. As a result, the balance relating to the notes issued on January 29, 2014 were reclassified from Debt Instruments Eligible to Compose Capital to Subordinated Debts (Note 19). |
Other financial liabilities
Other financial liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other financial liabilities [Abstract] | |
Other financial liabilities | 21. Other financial liabilities The breakdown of the balances of these items is as follows: Thousand of reais 2018 2017 2016 Credit ca rd obligations 39,761,739 32,049,712 25,420,237 Unsettled financial transactions (2) 3,356,871 3,905,236 3,829,374 Dividends and Interest on Capital payable 4,508,569 4,553,914 4,346,128 Tax collection accounts - Tax payables 1,205,746 1,077,860 1,157,386 Liability associated with the transfer of assets (Note 9.g) 126,906 428,248 774,673 Other financial liabilities (1) 2,769,005 2,245,765 1,351,301 Total 51,728,836 44,260,735 36,879,099 (1) As of December 31, 2018, the financial liability is included in the total amount of R$519 million (2017 - R$484 million and 2016 - R$307 million), related to the purchase option period of the shares held by Banco Bonsucesso. The exercise period is the defined between two periods, the first from February 10, 2019 to February 10, 2021, if the exercise does not occur in the first period, the second period will be from February 10, 2023 to February 10, 2025 and R$1,427 (2017 - R$1,223 million and 2016 - R$950 million), referring to an option with shares issued by Getnet SA, which was authorized by Bacen on February 18, 2019. (2) Includes operations to settle with B3 S.A. (Current Company Name of BM&FBovespa) and payment orders in foreign currency. |
Provisions for pensions and sim
Provisions for pensions and similar obligations | 12 Months Ended |
Dec. 31, 2018 | |
Provisions for pensions and similar obligations [Abstract] | |
Provisions for pensions and similar obligations | 22. Provisions for pensions and similar obligations On December 31, 2018 the balance of provisions for pension funds and similar obligations totaled R$3,357,654 (2017 - R$3,923,457 and 2016 - R$2,710,627). i. Supplemental Pension Plan Banco Santander and its subsidiaries sponsor the closed pension entities for the purpose of granting pensions and supplementary pensions over those granted by the Social Security, as defined in the basic regulations of each plan. · Banesprev - Fundo Banespa de Seguridade Social (Banesprev) - Plan I: defined benefit plan fully sponsored by Banco Santander, it covers employees hired after May 22, 1975 called Participants Recipients, and those hired until May 22, 1975 called Participants Aggregates, who are also entitled to death benefits. This plan is closed to new entrants since March 28, 2005. - Plan II: defined benefit plan, constituted from July 27, 1994, effective of the new text of the Statute and Regulations of the Basic Plan II, Plan I participants who chose the new plan began to contribute to the rate of 44.9% stipulated by the actuary for funding each year, introduced in April 2012 extraordinary cost to the sponsor and participants, as agreed with the PREVIC - Superintendence of Pension Funds, due to deficit in the plan. This plan is closed to new entrants since June 3, 2005. - Plan V: defined benefit plan fully sponsored by Banco Santander, it covers employees hired until May 22, 1975, closed and paid off. - Supplemental Pension Plan Pré 75: defined benefit plan was created in view of the privatization of Banespa and is managed by Banesprev and offered only to employees hired before May 22, 1975, which its effective date is January 1, 2000. This plan is closed to new entrants since April 28, 2000. - Plan III: variable contribution plan, for employees hired after May 22,1975, previously served by the Plans I and II. This plan receives contributions from the sponsor and the participants. The benefits are in the form of defined contribution during the period of contribution and defined benefit during the receipt of benefit, if paid as monthly income for life. Plan is closed to new entrants since September 1, 2005. - Plan IV: variable contribution plan, designed for employees hired as of November 27, 2000, in which the sponsor only contributes to the risk benefits and administrative expenses. In this plan the benefit is set in the form of defined contribution during the period of contribution and defined benefit during the receipt of benefits in the form of monthly income for life, in whole or in part of the benefit. The risk benefits of the plan are in defined benefit. This plan is closed to new entrants since July 23, 2010. - Three plans (DCA, DAB and CACIBAN): additional retirement and former employees associated pension, arising from the process of acquisition of the former Banco Meridional, established under the defined benefit plan. The plans were closed to new participants prior to the acquisition of Grupo Bozano Simonsen by Banco Santander in November 1999. - Plan Sanprev I: defined benefit plan, established on September 27, 1979, covering employees enrolled in the plan sponsor and it is in process of extinction since June 30, 1996. - Plan Sanprev II: plan that provides insurance risk, pension supplement temporary, disability retirement annuity and the supplemental death and sickness allowance and birth, including employees enrolled in the plan sponsor and is funded solely by sponsors through monthly contributions, as indicated by the actuary. This plan is closed to new entrants since March 10, 2010. - Plan Sanprev III: variable contribution plan covering employees of the sponsors who made the choice to contribute, by contribution freely chosen by participants from 2% of their salary. That the benefit plan is a defined contribution during the contribution and defined benefit during the receipt of the benefit, being in the form of monthly income for life, in whole or in part of the benefit. This plan is closed to new entrants since March 10, 2010. · Sanprev - Santander Associação de Previdência (Sanprev) Closed-End Private Pension Entity (EFPC) that used to manage three benefit plans, 2 in the Defined Benefit modality and 1 in the modality of Variable Contribution, whose process of management transfer of these plans to Banesprev occurred in January 2017. According to Portaria 389 of PREVIC, of May 8, 2018, it was approved the closure of the authorization of operation of Sanprev. · Bandeprev - Bandepe Previdência Social (Bandeprev) Defined benefit plan, sponsored by Banco Bandepe and Banco Santander, managed by Bandeprev. The plans are divided into basic plan and special retirement supplement plan, with different eligibility requirements, contributions and benefits by subgroups of participants. The plans are closed to new entrants since 1999 for Banco Bandepe's employees and for others since 2011. · Other Plans SantanderPrevi - Sociedade de Previdência Privada (SantanderPrevi): it´s a closed-end private pension entity with the purpose of constitution and implementation of social security pension plans, complementary to the social security contribution, in the form of actual legislation. The Retirement Plan of SantanderPrevi is structured as Defined Contribution and closed to new members since July 2018 as approved by PREVIC, with contributions shared between sponsors and plan participants. The appropriate values by the sponsors in the year of 2018 was R$89,959 (2017 - R$86,449 and 2016 - R$87,603). It has 10 cases of lifetime income with benefits arising from the previous plan. SBPREV - Santander Brasil Open Pension Plan: As from January 2, 2018, Santander started to offer this new optional supplementary pension plan for new employees hired and for employees who are not enrolled in any other pension plan managed by the Closed Entities Complementary Pension Plan of the Group. This new program includes the PGBL- Free Benefit Generation Plan and VGBL-Free Benefit Generator Life managed by Icatu Seguros, the Open Entity of Complementary Pension Plan, which are open for new accessions, with similar characteristics to SantanderPrevi's plan. the instituting / stipulating companies and the participants in the plans.The appropriated values by the sponsors in the year of 2018 were R$1,597. ii. Health and Dental Care Plan • Cabesp - Caixa Beneficente dos Funcionários do Banco do Estado de São Paulo S.A.: Entity that covers health and dental care expenses of employees hired until Banespa privatization in 2000, as defined in the entity's bylaws. • HolandaPrevi's Retirees (current corporate name of SantanderPrevi): For the health care plan Retirement has lifetime nature and is a closed group. In his termination the employee should have completed 10 years of employment with Banco Real and 55 years of age. In this case it was offered the continuity of health care plan where the employee pays 70% and the Bank pays 30% of the monthly payment. This rule lasted until December, 2002 and after this period that the employee got terminated with the status Retired Holandaprevi, he pays 100% of the health plan monthly payment. • Former employees of Banco Real S.A. (Retiree by Circulars): It grants entitlement to healthcare to former employees of Banco Real, with lifetime benefit it was granted in the same condition as the active employee, in this case, with the same coverage and plan design. Eligible only for basic plans and premium apartment, if the beneficiary chooses for the apartment plan he pays the difference between the plans plus the co-participation in the basic plan. Not allowed new additions of dependents. It is subsidized in 90% of the plan. • Bandeprev's retirees: Health care plan granted to Bandeprev's retirees as a lifetime benefit, for which Banco Santander is responsible for subsidizing 50% of the benefits of employees retired until November 27, 1998. For whom retired after this date, the subsidy is 30%. • Directors with Lifetime Benefits (Lifetime Directors): Lifetime health care benefit granted to a small closed group of former directors coming from Banco Sudameris, being 100% subsidized by the Bank. • Free Clinic: Health care plan (free clinic) is offered for a lifetime to retirees who have contributed to the Foundation Sudameris for at least 25 years and has difference in default if the user chooses apartment. The plan is only offered in standard infirmary where the cost is 100% of the Foundation Sudameris. • Life insurance for Banco Real's retirees (Life Insurance): For Retirees from Circulars: indemnity in case of Natural Death, Disease Disability, Accidental Death. The subsidy is 45% of the value. It is a closed group. • Life Insurance Assistance Boxes (Life Insurance): Included in the bulk of the life insurance in December 2018 the insurance of the retirees of the DCA, DAB and CACIBAN plans. This insurance was granted to retirees of the former Southern Bank, coverage was according to the choice of retiree at the time of joining the benefit. The Bank's allowance is 50% of the premium amount for the holder and some retirees have the spouse clause bearing 100% of the cost. The plan is closed for new participants. Additionally, it is assured to retired employees, since they meet to certain legal requirements and fully pay their respective contributions, the right to be maintaining as a beneficiary of the Banco Santander health plan, in the same conditions for healthcare coverage, taken place during their employment contract. Banco Santander provisions related to this retired employees are calculated using actuarial based in the present value of the current cost. iii. Actuarial Techniques The amount of the defined benefit obligations was determined by independent actuaries using the following actuarial techniques: • Valuation method: Projected unit credit method, which uses each year of service as giving rise to an additional unit of benefit entitlement and measures each unit separately. • Nominal discount rate for actuarial obligation and calculation of interest on assets: - Banesprev, Sanprev, SantanderPrevi, Bandeprev and Other Plans - 9.1% (2017 - 9.53% and 2016 - 10.9%). - Cabesp, Law 9,656 and others obligations - 9.3% (2017 - 9.65% and 2016 - 10.8%). • Estimated long-term inflation rate: - Banesprev, Sanprev, SantanderPrevi, Bandeprev and Other Plans - 4.0% (2017 - 4.0% and 2016 - 4.5%). • Estimate salary increase rate: - Banesprev, Sanprev, SantanderPrevi, Bandeprev Básico and Other Plans - 5.0% (2017 - 5.0% and 2016 - 5.0%). The funding status of the defined benefit obligations in 2018 and in the last 2 years are as follows: 2018 2017 2016 Present value of the obligations - Post-employment plans: To current employees 716,492 796,243 770,423 Vested obligations to retired employees 23,296,715 21,205,366 19,998,703 24,013,207 22,001,609 20,769,126 Less: Fair value of plan assets 22,708,990 20,689,637 20,116,916 Unrecognized assets (1) (1,079,808) (1,090,682) (969,161) Provisions - Post-employment plans, net 2,384,025 2,402,654 1,621,371 Present value of the obligations - Other similar obligations: To current employees 184,606 228,107 200,009 Vested obligations to retired employees 4,604,466 4,815,654 4,046,480 4,789,072 5,043,761 4,246,489 Less: Fair value of plan assets 4,157,251 3,721,147 3,310,895 Unrecognized assets (1) (68,527) - - Provisions - Other similar obligations, net 700,348 1,322,614 935,594 Total provisions for pension plans, net 3,084,373 3,725,268 2,556,965 Of which: Actuarial provisions 3,357,654 3,923,457 2,710,627 Actuarial assets (note 15) 273,281 198,189 153,662 (1) Refers to fully funded surplus plans Banesprev I and III, Sanprev I,II and III and Bandeprev. On the fourth quarter of 2018, the Management settled the actuarial deficit of Banesprev V and DAB in 2017 in the amount of R$ 295,529 and R$ 1,246, respectively, and the contribution in the estimated amount of R$ 152,329 to cover the actuarial deficit from 2018 to Banesprev Pré 75. In the first half of 2018, there was an increase in the cost contribution established for a post-employment benefit plan, which is calculated as a percentage of the total monthly compensation of members. The increase in the contribution resulted in a decrease in the past service cost due to changes in the plan. The envisaged changes implied a reduction in the present value of the obligations of the defined benefit plan, which is supported by actuarial valuations. The amounts recognized in the consolidated income statement in relation to the aforementioned defined benefit obligations are as follows: Post-Employment Plans 2018 2017 2016 Staff costs - Current service costs (note 40) 3,142 14,605 15,416 Interest and similar income and expenses - Interest cost (net) (notes 32 and 33) 124,754 70,429 120,524 Interest and similar income and expenses - Interest on unrecognized assets (notes 32 and 33) 104,160 105,832 117,981 Other movements 12,432 5,323 4,355 Total 244,488 196,189 258,276 Other Similar Obligations 2018 2017 2016 Staff costs - Current service costs (note 40) 5,797 5,476 9,064 Interest and similar income and expenses - Interest cost (net) (notes 32 and 33) 76,124 99,575 38,064 Interest and similar income and expenses - Interest on unrecognized assets (notes 32 and 33) 15,521 - 14,608 Other movements (2) (816,230) - 55,943 Total (718,788) 105,051 117,679 The changes in the present value of the accrued defined benefit obligations were as follows: Post-Employment Plans 2018 2017 2016 Present value of the obligations at beginning of year 22,001,609 20,769,126 17,525,799 Current service cost (Note 40) 3,142 14,605 15,416 Interest cost 2,029,099 2,170,639 2,046,949 Benefits paid (1,876,014) (1,834,681) (1,679,794) Actuarial (gains)/losses 1,674,908 871,308 2,844,733 Others 180,463 10,612 16,023 Present value of the obligations at end of year 24,013,207 22,001,609 20,769,126 Other Similar Obligations 2018 2017 2016 Present value of the obligations at beginning of year 5,043,761 4,246,489 6,034,734 Current service cost (Note 40) 5,797 5,476 9,064 Interest cost 438,567 447,653 703,874 Benefits paid (346,185) (339,538) (465,029) Actuarial (gains)/losses 455,193 683,681 1,330,371 Other (1) (2) (808,061) - (3,366,525) Present value of the obligations at end of year 4,789,072 5,043,761 4,246,489 (1) In the fourth quarter of 2016, Banco Santander updated the procedures for recognizing its obligations to the entity CABESP, in accordance with its bylaws, which establishes the coverage of medical costs in the equality of proportion between associates and sponsor. (2) In the year ended December 31, 2018 there was an increase in the cost contribution established for a postemployment benefit plan, which is calculated as a percentage of the total monthly compensation of associates. The increase in the contribution resulted in a decrease in the past service cost, due to changes in the plan. The envisaged changes implied a reduction in the present value of the obligations of the defined benefit plan, which is supported by actuarial valuations. In the Consolidated Statements of Income, this amount was recorded under Provision (Net). The changes in the fair value of the plan assets were as follows: Post-Employment Plans 2018 2017 2016 Fair value of plan assets at beginning of year 20,689,637 20,116,916 16,275,269 Interest (Expense) Income 1,904,345 2,100,211 1,926,424 Remeasurement - Actual return (loss) on plan assets excluding the amounts included in net interest expense 1,347,689 268,309 1,589,517 Contributions/(surrenders) 481,959 38,883 2,001,806 Of which: By the Bank 472,723 27,439 1,985,722 By plan participants 9,236 11,444 16,084 Benefits paid (1,876,014) (1,834,682) (1,676,116) Exchange differences and other items 161,374 - 16 Fair value of plan assets at end of year 22,708,990 20,689,637 20,116,916 Other Similar Obligations 2018 2017 2016 Fair value of plan assets at beginning of year 3,721,147 3,310,895 5,673,071 Interest (Expense) Income 362,444 348,078 665,811 Remeasurement - Actual return (loss) on plan assets excluding the amounts included in net interest expense 304,632 303,504 718,628 Contributions/(surrenders) 72,548 61,803 - Of which: By the Bank 72,548 61,803 - Benefits paid (310,458) (303,133) (3,746,615) Exchange differences and other items 6,938 - - Fair value of plan assets at end of year 4,157,251 3,721,147 3,310,895 Breakdown of gains (losses) actuarial by experience, financial assumptions and demographic hypotheses: Post-Employment Plans 2018 2017 2016 Experience Plan (803,717) 686,204 (696,910) Changes in Financial Assumptions (871,176) (1,557,689) (2,135,189) Changes in Financial Demographic - 146 (12,773) Gain (Loss) Actuarial - Obligation (1,674,893) (871,339) (2,844,872) Return on Investment, Return Unlike Implied Discount Rate 1,344,089 270,158 1,589,446 Gain (Loss) Actuarial - Asset 1,344,089 270,158 1,589,446 Changes in Surplus / Deficit Uncollectible 117,320 (15,690) - Other Similar Obligations 2018 2017 2016 Experience Plan (79,810) (303,396) (1,116,845) Changes in Financial Assumptions (376,949) (380,285) (537,952) Changes in Financial Demographic - - (379) Gain (Loss) Actuarial - Obligation (456,759) (683,681) (1,655,176) Return on Investment, Return Unlike Implied Discount Rate 307,048 303,504 718,628 Gain (Loss) Actuarial - Asset 307,048 303,504 718,628 Changes in Surplus Uncollectible (52,604) - - The experience adjustments arising from plan assets and liabilities are shown bellow: Post - Employment Plans 2018 2017 2016 Experience in Net Assets Adjustments 1,347,689 268,309 1,589,517 Other Similar Obligations 2018 2017 2016 Experience in Net Assets Adjustments 304,632 303,504 718,628 The amounts of actuarial obligation of defined benefit plans not covered and defined benefit plans partially or totally covered are shown below: 2018 2017 2016 700,347 701,551 826,963 28,101,932 26,343,818 22,734,017 The main categories of plan assets as a percentage of total plan assets are as follows: 2018 2017 2016 Equity instruments 4.81% 4.60% 1.00% Debt instruments 94.59% 94.70% 98.16% Properties 0.28% 0.35% 0.30% Other 0.32% 0.35% 0.54% The expected return on plan assets was determined based on the market expectations for returns over the duration of the related obligations. The actual return on plan assets was R$3,823,004 (2017 - R$3,021,950 and 2016 - R$4,900,380). The following table shows the estimated benefits payable on December 31, 2018 for the next ten years: 2019 2,109,187 2020 2,160,320 2021 2,209,720 2022 2,281,827 2023 2,352,046 2024 to 2028 12,734,200 Total 23,847,300 Assumptions about the rates related to medical care costs have a significant impact on the amounts recognized in income. The change of one percentage point in the medical care cost rates would have the effects as follows: Sensitivity (+) 1,0% (-) 1,0% Effect on current service cost and interest on actuarial liabilities 69,961 (62,469) Effects on present value of obligation 761,619 (680,061) The following table shows the duration of the actuarial liabilities of the plans sponsored by Banco Santander: Plans Post - Employment Plans Duration (in years) Banesprev Plans I 11.35 Banesprev Plans II 11.73 Banesprev Plans III 9.39 Banesprev Plans IV 14.00 Banesprev Plans V 8.87 Banesprev Pre-75 9.62 Sanprev I 6.47 Sanprev II 10.83 Sanprev III 9.66 Bandeprev Basic 9.57 Bandeprev Special I 6.70 Bandeprev Special II 6.52 SantanderPrevi 7.30 CACIBAN / DAB / DCA 6,79/5,79/6,37 Plans Other Similar Obligations Cabesp 14.16 Bandepe 14.73 Free Clinic 11.04 Lifetime officers 8.63 Circulars (1) 11,72 e 10,68 Life Insurance 7.82 (1) The duration 11.72 refers to the plan of Former Employees of Banco ABN Amro and 10.68 to the plan of Former Employees of Banco Real. Actuarial Assumptions Adopted in Calculations 2018 2017 2016 Pension Health Pension Health Pension Health Nominal Discount Rate for Actuarial Obligation 9.1% 9.3% 9.5% 9.7% 10.9% 10.8% Rate Calculation of Interest Under Assets to the Next Year 9.1% 9.3% 9.5% 9.7% 10.9% 10.8% Estimated Long-term Inflation Rate 4.0% 4.0% 4.0% 4.0% 4.5% 4.5% Estimated Salary Increase Rate 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% Mortality tables AT2000 AT2000 AT2000 AT2000 AT2000 AT2000 |
Provisions for judicial and adm
Provisions for judicial and administrative proceedings, commitments and other provisions | 12 Months Ended |
Dec. 31, 2018 | |
Provisions for judicial and administrative proceedings, commitments and other provisions [Abstract] | |
Provisions for judicial and administrative proceedings, commitments and other provisions | 23. Provisions for judicial and administrative proceedings, commitments and other provisions a) Breakdown The breakdown of the balance of “Provisions” is as follows: Thousand of reais 2018 2017 2016 Judicial and administrative proceedings under the responsibility of former controlling stockholders (Note 15) 605,638 707,131 814,925 Judicial and administrative proceedings 9,507,240 8,365,320 7,470,344 Of which: Civil 3,377,338 2,522,005 1,842,549 Labor 3,819,107 3,448,388 3,138,645 Tax and Social Security 2,310,795 2,394,927 2,489,150 Provisions for contingent commitments (Note 23.b) 626,267 - - Others provisions (1) 599,099 991,008 780,595 Total 11,338,244 10,063,459 9,065,864 (1) In 2018, includes R$126.561 (2017 - R$287,446 and 2016 - R$450,284) relating to the expenses of projects aimed at improving operational productivity and efficiency. b) Changes The changes in “Provisions” were as follows: Thousand of reais 2018 Pensions (1) Other Provisions Total Balance at beginning of year 3,923,456 10,063,459 13,986,915 Additions charged to income: Interest expense and similar charges 320,559 - 320,559 Personnel Expenses (Note 40) 8,939 - 8,939 Constitutions / Reversals and Adjustment of provisions (801,332) 3,556,512 2,755,180 Other Comprehensive Income 483,058 - 483,058 Additions to provisions for contingent commitments - (48,246) (48,246) Payments to external funds (594,024) - (594,024) Amount paid - (2,247,172) (2,247,172) Transfer to other assets - actuarial assets (Note 15) 16,998 - 16,998 Transfers, exchange differences and other changes - 13,691 13,691 Balance at end of year 3,357,654 11,338,244 14,695,898 Thousand of reais 2017 Pensions (1) Other Provisions Total Balance at beginning of year 2,710,626 9,065,864 11,776,490 Additions charged to income: Interest expense and similar charges 275,836 - 275,836 Personnel Expenses (Note 40) 20,081 - 20,081 Constitutions / Reversals and Adjustment of provisions 1,723 3,112,684 3,114,407 Other Comprehensive Income 1,028,090 - 1,028,090 Payments to external funds (127,357) - (127,357) Amount paid - (2,123,483) (2,123,483) Transfer to other assets - actuarial assets (Note 15) 14,457 - 14,457 Transfers, exchange differences and other changes - 8,394 8,394 Balance at end of year 3,923,456 10,063,459 13,986,915 Thousand of reais 2016 Pensions (1) Other Provisions Total Balance at beginning of year 2,696,653 8,713,024 11,409,677 Additions charged to income: Interest expense and similar charges (Note 32 & 33) 287,576 - 287,576 Personnel Expenses (Note 40) 24,480 - 24,480 Constitutions / Reversals and Adjustment of provisions 60,309 2,645,764 2,706,073 Payments to pensioners and early retirees with a charge to internal provisions 1,876,888 - 1,876,888 Payments to external funds (2,074,873) - (2,074,873) Amount paid - (2,330,283) (2,330,283) Other Comprehensive Income (153,595) - (153,595) Transfers, exchange differences and other changes (6,812) 37,359 30,547 Balance at end of year 2,710,626 9,065,864 11,776,490 (1) For further information, see note 15. Provisions for pension funds and similar obligations. b.1) Provisions for contingent payments According to note 2.iii.ix, IFRS 9 requires that the provision for expected credit losses be recorded for contracts of financial guarantees rendered, which have not yet been honored. Provision expense reflecting credit risk should be measured and accounted for when the honor of these guarantees occurs and the client accused does not comply with its contractual obligations. The movement of these provisions in 2018 is as follows: Thousand of reais 2018 Balance at beginning of year (in 1/01/2018 after the initial adoption of the IFRS 9) 674,513 Creation of provision for contingent commitments (48,246) Balance at end of year 626,267 c) Provisions for Contingent Civil, Labor, Tax and Social Security Banco Santander and its subsidiaries are involved in lawsuits and administrative proceedings related to tax, labor, social security and civil arising in the normal course of its activities. The provisions were constituted based on the nature, complexity, lawsuits historic and company´s assessment of lawsuit losses based on the opinions of internal and external legal advisors. The Santander has the policy to constitute provision of full amount of lawsuits who's the result of loss assessment is probable. The legal obligation of tax and social security were fully recognized in the financial statements. Management understands that the provisions recorded are sufficient to meet legal obligations and losses from lawsuits and administrative proceedings as follows: c.1) Lawsuits and Administrative Proceedings - related to Tax and Social Security In October 2017, the Bank also joined the Incentive Payment and Installment Programs of the municipalities of São Paulo and Rio de Janeiro. Adhesions to the programs included payment of administrative and legal proceedings related to the ISS, related to the periods 2005 to 2016, in the total of R$292,562. As a consequence, provisions were reversed in the amount of R$435,454. In the Statement of Income of 2017, a reversal of provisions was recorded, net of tax effects, in the total of R$96,129. In August, 2017, The Bank and its affiliates joined a federal amnesty program established by MP (Law) 783/2017 and reissues. Adherence to the program included administrative proceedings related to IRPJ, CSLL and Social Security Contributions referring to the base periods from 1999 to 2005, in the total of R$534,001, after the benefits of the installment program, of which R$191,897 was paid in August 2017 and R$299,820 in January 2018. With the conversion of the provisional measure into law, and its amendments, the amount became R$491,717. Main lawsuits and administrative proceedings related to legal obligations, tax and social security • PIS and Cofins - R$3,632,467 (2017 - R$3,501,464 and 2016 - R$3,290,900): Banco Santander and its subsidiaries filed lawsuits seeking to eliminate the application of Law 9,718/1998, which modified the calculation basis for PIS and Cofins to cover all revenues of legal entities and not only those arising from the provision of services and sale of goods. Regarding the Banco Santander Process, on April 23, 2015, a STF decision was issued admitting the Extraordinary Appeal filed by the Federal Government regarding PIS and denying the follow-up to the Extraordinary Appeal of the Federal Public Prosecutor regarding Cofins. Both appealed this decision, without any success, so that the suit relating to Cofins is defined, ruling the judgment of the Federal Regional Court of the 4th Region of August 2007, favorable to Banco Santander. Pursuant to the STF, Banco Santander's PIS and the PIS and Cofins of other subsidiaries are pending final judgment. • Increase in CSLL Tax Rate - R$0 (2017 - R$905,113 and 2016 - R$851,744): the Bank Santander and its subsidiaries are discussing the increase in the CSLL tax rate, from 9% to 15%, established by Executive Act 413/2008, subsequently converted into Law 11,727/2008, as from April 2008. In 2018, given the classification of success and unfavorable scenario in the Courts, we opted to pay the amounts discussed. Main lawsuits and administrative proceedings with probable loss risk Banco Santander and its subsidiaries are parties in lawsuits and administrative proceedings related to tax and social security matters, which their risk of loss are classified as probable, based on the opinion of legal counsel. • Provisional Contribution on Financial Transactions (CPMF) on Customer Operations - R$729,919 (2017 - R$714,604 and 2016 - R$689,987): in May 2003, the Federal Revenue Service issued a tax assessment against Santander Distribuidora de Títulos e Valores Mobiliários Ltda. (Santander DTVM) and another tax assessment against Banco Santander Brasil S.A. The tax assessments refer to the collection of CPMF tax on transactions conducted by Santander DTVM in the cash management of its customers' funds and clearing services provided by Banco to Santander DTVM in 2000, 2001 and 2002. Based on the risk assessment of legal counsel, the tax treatment was accurate. Santander DTVM had a favorable decision at the Board of Tax Appeals (CARF). Banco Santander had a unfavorable decision and was considered responsible for the collection of the CPMF tax. Both decisions were appealed by the respective losing party to the highest jurisdiction of CARF. In June 2015, Bank and DTVM had obtained a non favorable decision at CARF. On July 3, 2015 Bank and Produban Serviços de Informática S.A. filed lawsuit aiming to cancel both tax charges on the period ended on December 31, 2018 amounting R$1,462.5 million. Based on the evaluation of legal advisors, were consisted provision to the probable loss. • Social Security Contribution (INSS) - R$273,233 (2017 - R$265,022 and 2016 - R$266,391): Banco Santander and its subsidiaries are involved in administrative and judicial proceedings regarding the collection of income tax on social security and education allowance contributions over several funds that, according to the evaluation of legal advisors, do not have nature of salary. • Tax on Services (ISS) - Financial Institutions - R$228,403 (2017 - R$714,604 and 2016 - R$621,437): Banco Santander and its subsidiaries discuss administrative and legal requirements, by several municipalities, of the payment of ISS on various revenues arising from operations that are usually not classified as services (Note 23.c.4 - Possible Risk Loss). c.2) Lawsuits and Administrative Proceedings of Labor These are lawsuits filed by labor Unions, Associations, Public Prosecutors and former employees claiming labor rights they believe are due, especially payment for overtime and other labor rights, including retirement benefit lawsuits. For claims considered to be similar and usual, provisions are recognized based on the payments and successes historic. Claims that do not fit the previous criteria have their provisions constituted according to individual assessment performed, and provisions being constituted based on the risk of loss as probable, the law and jurisprudence according to the assessment of loss made by legal counsel. c.3) Lawsuits and Administrative Proceedings of Civil These contingencies are generally caused by: (1) Lawsuits with a request for revision of contractual terms and conditions or requests for monetary adjustments, including supposed effects of the implementation of various government economic plans, (2) lawsuits deriving of financing agreements, (3) lawsuits of execution; and (4) lawsuits of indemnity by loss and damage. For civil lawsuits considered common and similar in nature, provisions are recorded based on the average of cases closed. Claims that do not fit the previous criteria are provisioned according to individual assessment performed, and provisions are based on the risk of loss as probable, the law and jurisprudence according to the assessment of loss made by legal counsel. The main processes with the classification of risk of loss as probable are described below: • Lawsuits for Indemnity - seeking indemnity for material and emotional damage, regarding the consumer relationship on matters related to credit cards, consumer credit, bank accounts, collection and loans and other operations. In the civil lawsuits considered to be similar and usual, provisions are recorded based on the average of cases closed. Civil lawsuits that do not fit into the previous criteria are provisioned according to the individual assessment made, being the provisions recognized based on the risk of loss as probable, the law and jurisprudence according to the assessment of loss made by legal counsel. • Economic Plans - they referred to lawsuits filed by savings accountholders, related to supposed inflation purge arising from the Economic Plans (Bresser, Verão, Collor I and II), based on the understanding that such plans violated acquired rights relating to the application of inflation indexes on Saving Accounts, Lawsuits Deposits and Time Deposits (CDB). Provisions arising from such lawsuits are recorded based on the individual evaluation of loss made by external legal consultants. The Banco Santander is also party in public class lawsuits on the same matter filed by consumer rights organizations, Public Prosecutor's Offices and Public Defender's Offices. The provision is made for the lawsuits with the classification of risk as probable, based on the individual execution orders. The STF is still analyzing the subject and has already ordered the suspension of all the procedures except those that were not already decided in courts or in phase of definitive execution. There are decisions favorable to banks at the STF with regard to the economic phenomenon similar to the savings accounts, as in the case of monetary restatement of time deposits - CDB and agreements (present value table). However, the Supreme Court´s jurisprudence has not come to a conclusion regarding the constitutionality of the norms that changed Brazil's monetary standard. On April 14, 2010, the STJ was recently decided that the deadline for the filing of civil lawsuits that argue the government's purge is five years, but this decision has not been handed down on the lawsuits yet. Thus, with this decision, a majority lawsuits, as they were filed after the period of five years is likely to be rejected, reducing the values involved. Still, the STF decided that the deadline for individual savers to become party on the public civil litigations, is also five years, counted from the final unappealable sentence. Banco Santander believes in the success of the arguments defended in these courts based on their content and the legal basis. At the end of 2017, the General Union Law (AGU), Bacen, Institute of Consumer Protection (Idec), the Brazilian Front of the Money savers (Febrapo), the Brazilian Banks Federation (Febraban) have signed an agreement with the purpose to close all lawsuits related to Economic Plans. The discussions focused on the definition of the amount that would be paid to each person according to the outstanding balance in the saving account. The total amount of the payments will depend on the number of the additional clients, and also on the number of money savers that approved in the courts the existance of their account and balance in the birthday date of the indexes changes. The term of agreement negotiated between the parties was submitted to the STF, which approved the terms of the agreement. Recently, the STF ordered the suspension of all economic plan (in the country), for two years considering the judicial homologation. The Management considers that the accrued provisions are due to charge interest in accordance with the plans, including considering the agreement approved by the STF. c.4) Civil, Labor, Tax, and Security Social Liabilities Contingent Classified with Loss Risk as Possible: Refer to lawsuits and administrative proceedings involving tax, labor and civil matters classified by legal counsels with loss risk as possible, which they were not recorded. The tax lawsuits classification with loss risk as possible totaled R$24,929 million, being the main lawsuits as follow: • INSS on Profits or Results (PLR) - Bank and the subsidiaries have several lawsuits and administrative proceedings arising from questioning tax authorities in connection with the taxation for social security purposes of certain items which are not considered to be employee remuneration. As of December 31, 2018, the amounts related to these proceedings totaled approximately R$5,354 million. • Tax on Services (ISS) - Financial Institutions - Banco Santander and its subsidiaries discuss administrative and legal requirements, by several municipalities, of the payment of ISS on various revenues arising from operations that are usually not classified as services. On December 31, 2018, the amounts related to these proceedings totaled approximately R$3,662 million. • Unapproved Compensation - The Bank and its affiliates discuss administrative and legal proceedings with the Federal Revenue, Office to grant tax relief with credits arising from overpayments. On December 31, 2018, the amounts related to these proceedings totaled approximately R$2,505 million. • Goodwill Amortization of Banco Real - the Federal Tax Office of Brazil issued infraction notices against the Bank to require the income tax and social payments, including late charges, for the period of 2009. The Tax Authorities considered that the goodwill related to acquisition of Banco Real, amortized for accounting purposes prior to the merger, could not be deduced by Banco Santander for tax purposes. The infraction notice was contested. On July 14, 2015, the Police Judging RFB decided favorably to Banco Santander, fully canceling the tax debt. On November 10, 2016, the appeal was filed, prompting the Bank to lodge an appeal with CARF, which is awaiting judgment. On December 31, 2018, the balance was approximately R$1,377 million. • Credit Losses - Bank and its subsidiaries challenged the tax assessments issued by the Federal Revenue Services claiming the deduction for credit losses because they fail to meet the relevant requirements under applicable law. As of December 31, 2018 the amount related to this claim is approximately R$1,039 million. • Use of CSLL Tax and Negative Tax Loss - Tax assessments issued by the Federal Revenue Service in 2009 for alleged undue compensation of tax loss carryforwards and negative basis of CSLL, as a consequence of tax assessments drawn up in previous periods. Judgment is pending at the administrative level. As of December 31, 2018, the amount was R$1,022 million. • Goodwill Amortization of Banco Sudameris - the Tax Authorities have issued infraction notices to require the income tax and social contribution payments, including late charges, relating to tax deduction of amortization of goodwill from the acquisition of Banco Sudameris, related to the period of 2007 to 2012. Banco Santander timely presented its appeals, which are pending. On December 31, 2018, the amounts related to these proceedings totaled approximately R$615 million. • IRPJ and CSLL - Capital Gain - the Federal Tax Office of Brazil issued infraction notices against Santander Seguros, successor company of ABN AMRO Brasil Dois Participações S.A. (AAB Dois Par), charging income Tax and Social Contribution to related base year 2005. The Federal Tax Office of Brazil claims that capital gain in sales of shares from Real Seguros S.A and Real Vida Previdência S.A. by AAB Dois Par should be taxed by the rate of 34% instead 15%. The assessment was contested administratively based on understanding that tax treatment adopted at the transaction was in compliance with tax laws and capital gain was taxed properly. The administrative lawsuit is awaiting trial. The Banco Santander is responsible for any adverse outcome in this lawsuit as former Zurich Santander Brasil Seguros e Previdência S.A. stockholder. As of December 31, 2018, the amount related to this lawsuit is approximately R$300 million. The labor claims with classification of loss risk as possible totaled R$62 million, excluding the lawsuits below: Semiannual Bonus or PLR - a labor lawsuit relating to the payment of a semiannual bonus or, alternatively, profit sharing, to retired employees from Banco do Estado de São Paulo S.A. - Banespa, that had been hired up to May 22, 1975, filed by Banespa's Retirees Association. This lawsuit was dismissed against the Bank by the Superior Labor Court. The STF rejected the extracommon appeal of the Bank by a monocratic decision maintaining the earlier condemnation. Santander filed a Regimental Appeal which holds STF´s decision. The Regimental Appeal is an internal appeal filed in the STF, in order to refer the monocratic decision to a group of five ministers. The 1st Class of the Supreme Court upheld the appeal by the Bank and denied the Afabesp. The subjects of the extracommon appeal of the Bank will move forward to the Supreme Court for judgment. The amount related to this claim is not disclosed due to the current stage of the lawsuit and such disclosure may impact the progress of the claim. Readjustment of Banesprev retirement complements by the IGPDI - lawsuit filed in 2002 in Federal Court by the Association of Retired Employees of the Banco do Estado de São Paulo S.A. - Banespa, requesting the readjustment of the retirement supplementation by the IGPDI for Banespa retirees who have been admitted until May 22, 1975. The judgment granted the correction but only in the periods in which no other form of adjustment could be applied. The Bank and Banesprev have appealed this decision and although the appeals have not yet been judged, the Bank's success rate in this matter in the High Courts is around 90%. In Provisional Execution, calculations were presented by the Bank and Banesprev with "zero" result due to the exclusion of participants who, among other reasons, are listed as authors in other lawsuits or have already had some type of adjustment. The amount related to this claim is not disclosed due to the current stage of the lawsuit and such disclosure may impact the progress of the claim. The liabilities related to civil lawsuits with classification of loss risk as possible totaled R$1.467 million, being the main lawsuits as follow: Indemnity Lawsuit Arising of the Banco Bandepe - related to mutual agreement on appeal to the Justice Superior Court (STJ - Superior Tribunal de Justiça). Indemnity Lawsuit Related to Custody Services - provided by Banco Santander at an early stage which was not handed down yet. Lawsuit Arising from a Contractual Dispute - the acquisition of Banco Geral do Comércio S.A. on appeal to the Court of the State of São Paulo (TJSP - Tribunal de Justiça do Estado de São Paulo). c.5) Other Lawsuits Under the Responsibility of Former Controlling Stockholders Refer to tax, labor and civil lawsuits in the amounts of R$598,544, R$327 and R$6,767 (2017 - R$698,141, R$2,607 and R$6,381 and 2016 - R$810,383, R$712 and R$3,830), respectively, which the responsible people were the former controlling stockholders of the Bank and acquired companies. Based on the agreement signed, these lawsuits have guaranteed reimbursement from part of the former controllers, whose respective duties were recorded in other receivables - others. |
Tax assets and liabilities
Tax assets and liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Tax assets and liabilities [Abstract] | |
Tax assets and liabilities | 24. Tax assets and liabilities a) Income and Social Contribution Taxes The total charge for the year can be reconciled to accounting profit as follows: Thousand of reais 2018 2017 2016 Operating Profit Before Tax 15,909,771 14,513,684 16,383,902 Interest on capital (1) (4,080,000) (3,800,000) (3,850,000) Operating Profit Before Tax 11,829,771 10,713,684 12,533,902 Rates (25% income tax and 20% social contribution tax) (5,323,397) (4,821,158) (5,640,256) PIS and COFINS (net of income and social contribution taxes) (2) (7) (1,490,190) (1,427,960) (1,641,181) Non-taxable/Non-deductible: Equity in affiliates 29,681 32,198 21,392 Goodwill (3) (101,305) (669,963) (734,952) Exchange variation - foreign branches (4) 2,792,995 440,857 (3,561,133) Net Indeductible Expenses of Non-Taxable Income (7) 384,554 194,737 - Adjustments: Constitution of income and social contribution taxes on temporary differences 136,353 1,138,005 605,058 Effects of change in rate of social contribution taxes (5)(6) (90,013) (1,427,667) (613,202) Other adjustments (6) 551,469 1,165,315 2,645,290 Income taxes (3,109,853) (5,375,636) (8,918,984) Of which: Current tax (7) (4,704,293) (4,969,241) (3,575,099) Deferred taxes 1,594,440 (406,395) (5,343,885) Taxes paid in the year (3,668,571) (3,280,230) (4,240,115) (1) Amount distributed to shareholders as interest attributable to shareholders' equity. For accounting purposes, although the interest should be reflected in the income statement for tax deduction, the charge is reversed before the calculation of the net income in the financial statements and deducted from the shareholders' equity since it is considered as dividend. (2) PIS and COFINS are considered a profit-base component (net basis of certain revenues and expenses), therefore and accordingly to IAS 12 they are recorded as income taxes. (3) The difference between the tax basis and accounting basis of goodwill on acquisition of Banco ABN Amro Real S.A. is a permanent and definitive difference. Administration in this case the possibility of loss on impairment or disposal is remote and only applies to the entity as a whole and according to the characteristics of the business combination performed, it is not possible to segregate and identify the business originally acquired. Therefore deferred tax liability is not record. (4) Permanent difference related of foreign currency exchange variation on investments abroad nontaxable/ deductible (see details below). (5) Effect of the rate differential for other non-financial corporations, with a social contribution rate of 9%, as well as the effect of the additional 5% applicable to financial institutions, valid until the end of 2018. (6) In 2016, includes the IAS 21 amounted to R$575.131 (see Hedge of Investments Abroad below) and non-taxable income/non-deductible expenses R$349.120. (7) Includes mainly the tax effect on expenses with donations, revenues from judicial deposit updates and other income and expenses that do not qualify as temporary differences. Exchange Hedge of Grand Cayman, branch in Luxembourg and of Santander Brasil EFC Banco Santander operates an agency in the Cayman Islands, a branch in Luxembourg, and a subsidiary called Santander Brasil Establecimiento Financiero de Credito, EFC, or "Santander Brasil EFC" (an independent subsidiary in Spain), which are used primarily to raise funds in the capital and financial markets to provide the Bank with credit lines that are extended to its clients for foreign trade and working capital financing. To hedge the exposure to exchange rate variations, the Bank uses derivatives and funding. In accordance with Brazilian tax rules, gains or losses arising from the impact of the appreciation or depreciation of the Real on foreign investments are not taxable or deductible for PIS / Cofins / IR / CSLL purposes, while the gains or losses of the derivatives used as hedges are taxable or deductible. The purpose of these derivatives is to protect net income after taxes. Tax distinct treatment from such exchange rate differences results in volatility in "Operating Income Before Tax" and "Income taxes". The foreign exchange variations recorded as a result of foreign investments in the years ended on December 31, 2018, 2017 and 2016. 2018 2017 2016 Exchange differences (net) Result generated by the exchange rate variations on the Bank's investment in the Cayman, Luxemburg and EFC Branch 6,673,535 892,863 (7,407,231) Gains (losses) on financial assets and liabilities (net) Result generated by derivative contracts used as hedge (12,540,855) (1,702,557) 14,124,481 Income Taxes Tax effect of derivative contracts used as hedge - PIS / COFINS 255,481 80,170 (656,788) Tax effect of derivative contracts used as hedge - IR / CS 5,611,839 729,524 (6,060,462) b) Effective tax rate calculation The effective tax rate is as follows: Thousand of reais 2018 2017 2016 Operating Profit Before Tax 15,909,771 14,513,684 16,383,902 Income tax 3,109,853 5,375,636 8,918,984 Effective tax rate 19.55% 37.04% 54.44% c) Tax recognized in equity In addition to the income tax recognized in the consolidated income statement, the Bank recognized the following amounts in consolidated equity: Thousand of reais 2018 2017 2016 Tax credited to equity 2,785,330 3,373,984 2,955,552 Measurement of available-for-sale securities - 1,016,121 963,990 Measurement at fair value through other comprehensive income 369,805 - - Measurement of cash flow hedges 2,081 1,063 4,145 Measurement of investment hedges 562,353 562,353 562,353 Defined benefit plan 1,851,091 1,794,447 1,425,064 Tax charged to equity (2,168,758) (2,541,177) (1,795,115) Measurement of available-for-sale securities - (2,426,459) (1,701,732) Measurement at fair value through other comprehensive income (1,997,600) - - Measurement of cash flow hedges (163,038) (111,134) (87,929) Defined benefit plan (8,120) (3,584) (5,454) Total 616,572 832,807 1,160,437 d) Deferred taxes The detail of the balances of “Tax assets - Deferred” and “Tax liabilities - Deferred” is as follows: Thousand of reais 2018 2017 2016 Tax assets: 27,680,578 24,778,078 24,437,112 Of which: Temporary differences (1) 26,416,527 23,375,600 23,398,886 Tax loss carry forwards 846,587 866,579 382,867 Social contribution taxes 18% 417,464 535,899 655,359 Total deferred tax assets 27,680,578 24,778,078 24,437,112 Tax liabilities: 3,031,389 2,496,531 1,268,037 Of which: Excess depreciation of leased assets 123,257 124,909 144,623 Adjustment to fair value of trading securities and derivatives 2,908,132 2,371,622 1,123,414 Total deferred tax liabilities 3,031,389 2,496,531 1,268,037 (1) Temporary differences relate mainly to impairment losses on loans and receivables and provisions for lawsuits and administrative proceedings, and the effect of the fair value of financial instruments. The changes in the balances of “Tax Assets - Deferred” and “Tax Liabilities - Deferred” in the last three years were as follows: Thousand of reais Balances at December 31, 2017 Adjustment to Valuation adjustments (1) Other (2) Acquisition / Merger Balance at December 31, 2018 Tax assets: 24,778,078 1,674,317 (186,260) 1,369,934 44,509 27,680,578 Temporary differences 23,375,600 1,812,744 (186,260) 1,369,934 44,509 26,416,527 Tax loss carry forwards 866,579 (19,992) - - - 846,587 Social contribution taxes 18% 535,899 (118,435) - - - 417,464 Tax liabilities: 2,496,531 79,877 607,773 (153,623) 831 3,031,389 Temporary differences 2,496,531 79,877 607,773 (153,623) 831 3,031,389 Total 22,281,547 1,594,440 (794,033) 1,523,557 43,678 24,649,189 Thousand of reais Balances at December 31, 2016 Adjustment to Valuation adjustments (1) Other (2) Acquisition / Merger Balance at December 31, 2017 Tax assets: 24,437,112 668,483 254,733 (620,401) 38,151 24,778,078 Temporary differences 23,398,886 304,231 254,733 (620,401) 38,151 23,375,600 Tax loss carry forwards 382,867 483,712 - - - 866,579 Social contribution taxes 18% 655,359 (119,460) - - - 535,899 Tax liabilities: 1,268,037 262,088 582,363 378,693 5,350 2,496,531 Temporary differences 1,268,037 262,088 582,363 378,693 5,350 2,496,531 Total 23,169,075 406,395 (327,630) (999,094) 32,801 22,281,547 Thousand of reais Balances at December 31, 2015 Adjustment to Valuation adjustments (1) Other (2) Acquisition / Merger Balance at December 31, 2016 Tax assets: 30,575,504 (5,318,219) (1,580,025) 652,599 107,253 24,437,112 Temporary differences 29,538,257 (5,319,198) (1,580,025) 652,599 107,253 23,398,886 Tax loss carry forwards 381,888 979 - - - 382,867 Social contribution taxes 18% 655,359 - - - - 655,359 312,420 (551,692) 962,406 93,991 - 817,125 Temporary differences 312,420 (551,692) 962,406 93,991 - 817,125 Total 30,263,084 (4,766,527) (2,542,431) 558,608 107,253 23,619,987 (1) It relates to tax recognized in equity. (2) In 2018, it mainly refers to net of deferred taxes amounted to R$1,216,311 (2017 - R$241,708 and 2016 - R$129,147), which have the same counterparty and realization period. e) Expected realization of deferred tax assets Tax assets Tax liabilities Year Temporary differences Tax loss carry forwards Social contribution taxes 18% Total Temporary differences Total 2019 8,288,397 390,185 390,185 8,288,397 390,185 390,185 2020 7,034,807 402,875 402,875 7,034,807 402,875 402,875 2021 7,416,682 341,120 341,120 7,416,682 341,120 341,120 2022 855,891 236,583 236,583 855,891 236,583 236,583 2023 a 2025 1,588,828 236,583 236,583 1,588,828 236,583 236,583 2026 a 2027 1,474,574 854,424 854,424 1,474,574 854,424 854,424 2028 a 2032 1,021,399 569,619 569,619 1,021,399 569,619 569,619 Total 27,680,578 3,031,389 3,031,389 27,680,578 3,031,389 3,031,389 |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other liabilities [Abstract] | |
Other liabilities | 25. Other liabilities The breakdown of the balance of “Other Liabilities” is as follows: Thousand of reais 2018 2017 2016 Accrued expenses and deferred income (1) 3,193,291 3,036,374 2,925,598 Transactions in transit (3) 925,336 980,501 916,844 Provision for share-based payment 260,739 270,626 212,384 Liabilities for insurance contracts 1,797,167 1,587,603 1,584,303 Other (2) 2,918,615 2,138,817 2,559,970 Total 9,095,148 8,013,921 8,199,099 (1) Corresponds, mainly, to payments to be made - personnel expenses. (2) Includes credits for funds to be released, such as Administratives expenses, amounts due to associates and suppliers. (3) Includes mainly the amounts to transfer to the credit card companies (resources in transit) and amount to release referred to the real estate credits. |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2018 | |
Other Comprehensive Income [Abstract] | |
Other Comprehensive Income | 26. Other Comprehensive Income The balances of Other Comprehensive Income include the amounts, net of the related tax effect, of the adjustments to assets and liabilities recognized temporarily in equity stated in the Consolidated Statement of Changes in Equity and Consolidated Statements of Comprehensive Income until they are extinguished or realized, when they are recognized in the consolidated income statement. The amounts attributable to subsidiaries, investments in associates and joint ventures are presented, on a line by line basis, in the appropriate items based on their nature. It should be noted that the consolidated Statements of Comprehensive Income includes the changes to Other Comprehensive Income as follows: - Revaluation gains (losses): This includes the amount of the gains, net of losses incurred in the year, recognized directly in equity. The amounts recognized in equity in the year remain under this heading, even if in the same year they are transferred to the income statement or to the initial carrying amount of the assets or liabilities or are reclassified to another heading. - Amounts transferred to income statement: This includes the amount of the revaluation gains (losses) previously recognized in equity, even in the same year, which are subsequently recognized in the income statement. - Amounts transferred to the initial carrying amount of hedged objects: This includes the amount of the revaluation gains (losses) previously recognized in Equity, even in the same year, which are recognized in the initial carrying amount of assets or liabilities as a result of cash flow hedges. - Other transfers: This includes the amount of the transfers made in the year between the various Other Comprehensive Income items. In the Consolidated Statements of Comprehensive Income the amounts in "Other Comprehensive Income" are recognized gross, including the amount relating to non-controlling interests, and the corresponding tax effect is presented under a separate heading, except in the case of entities accounted for using the equity method, the amounts for which are presented net of the tax effect. a) Financial assets measured at fair value through other comprehensive income a.1) Financial assets measured at fair value through other comprehensive income Other Comprehensive Income - Financial assets measured at fair value through other comprehensive income includes the net amount of unrealized changes in the fair value of assets classified as available-for-sale financial assets (see Notes 6 and 7), net of taxes. The breakdown, by type of instrument and geographical origin of the issuer, of Other Comprehensive Income Financial assets measured at fair value through other comprehensive income (IFRS 9) on December 31, 2018 is as follows: Thousand of reais 2018 Revaluation gains Revaluation losses Net revaluation gains (losses) Fair value Debt Instruments Government debt securities 3,917,451 (1,608,673) 2,308,778 85,395,136 Private-sector debt securities 1,546,895 (1,863,092) (316,197) 555 Total 5,464,346 (3,471,765) 1,992,581 85,395,691 a.2) Financial assets - available-for-sale Other Comprehensive Income - Financial assets measured at fair value through other comprehensive income includes the net amount of unrealized changes in the fair value of assets classified as available-for-sale financial assets (see Notes 6 and 7), net of taxes. The breakdown, by type of instrument and geographical origin of the issuer, of Other Comprehensive Income - available-for-sale (IAS 39) on December 31 2017 and 2016 is as follows: Thousand of reais 2017 Revaluation gains Revaluation losses Net revaluation gains (losses) Fair value Debt Instruments Government debt securities 1,616,486 (6,942) 1,609,544 79,462,303 Private-sector debt securities 10,694 (2,227) 8,467 5,254,444 Equity instruments Domestic 230,722 (35,159) 195,563 1,106,637 Of which: Listed 156,236 (5,322) 150,914 965,547 Unlisted 74,486 (29,837) 44,649 141,090 Total 1,857,902 (44,328) 1,813,574 85,823,384 Thousand of reais 2016 Revaluation gains Revaluation losses Net revaluation gains (losses) Fair value Debt Instruments Government debt securities 454,609 (31,288) 423,321 50,384,382 Private-sector debt securities 101,593 (6,501) 95,092 5,445,190 Equity instruments Domestic 220,535 (72,758) 147,777 1,985,473 Of which: Listed 147,844 (50,269) 97,575 1,024,505 Unlisted 72,691 (22,489) 50,202 960,968 Total 776,737 (110,547) 666,190 57,815,045 At each reporting date, the Bank assesses whether there is any objective evidence indicating that the available-for-sale financial assets (debt securities and equity instruments) are impaired. b) Cash flow hedges Other Comprehensive Income-Cash flow hedges includes the gains or losses attributable to hedge instruments that qualify as effective hedges. These amounts will remain under this heading until they are recognized in the consolidated income statement in the periods in which the hedged items affect them (see Note 8). Accordingly, amounts representing valuation losses will be offset in the future by gains generated by the hedged objects. c) Hedges of net investments in foreign operations and Translation adjustments foreign investment Other Comprehensive Incomes-Hedges of net investments in foreign operations includes the net amount of changes in the value of hedging instruments in hedges of net investments in foreign operations. In 2017 this hedge was discontinued (Note 8.a5). In 2016, no ineffective portion was identified (Note 8.a5). Other Comprehensive Income-Exchange differences includes the net amount of the differences arising on the translation to Reais of the balances of the consolidated entities whose functional currency is not the Reais (Note 2.a). |
Non-controlling interests
Non-controlling interests | 12 Months Ended |
Dec. 31, 2018 | |
Non-controlling interests [Abstract] | |
Non-controlling interests | 27. Non-controlling interests a) Breakdown The detail, by company, of the balance of “Equity - Non-controlling interests” is as follows: Thousand of re ais 2018 2017 2016 Santander Leasing S.A. Arrendamento Mercantil 447 395 441 Santander Brasil Advisory Services S.A - - 529 Getnet S.A. 249,007 206,105 168,863 Olé Consignado S.A. 116,967 82,432 30,425 Santander Serviços Técnicos, Administrativos e de Corretagem de Seguros - - 318,498 BW Guirapá S.A. - - 68,691 Banco PSA Finance Brasil S.A. 155,399 147,295 138,057 Santander FI SBAC (1) 62,595 - - Rojo Entretenimento S.A. 7,015 - - Return Capital Serviços de Recuperação de Créditos S.A. (Current name of Ipanema Empreendimentos e Participações Ltda.) 1,155 667 - Total 592,585 436,894 725,504 Thousand of reais 2018 2017 2016 Profit attributable to non-controlling interests 217,441 213,984 130,355 Of which: Santander Leasing S.A. Arrendamento Mercantil 25 48 41 Santander Brasil Advisory Services S.A - - 34 Getnet S.A. 55,518 48,842 27,209 Olé Consignado S.A. 138,527 53,286 5,432 Santander Serviços Técnicos, Administrativos e de Corretagem de Seguros - 92,365 98,717 BW Guirapá S.A. - (776) (2,957) Banco PSA Finance Brasil S.A. 17,914 19,884 1,879 Santander FI SBAC 4,141 - - Rojo Entretenimento S.A. 166 - - Return Capital Serviços de Recuperação de Créditos S.A. (Current name of Ipanema Empreendimentos e Participações Ltda.) 1,150 335 - (1) The SBAC Fund, is an exclusive investment fund of the Consolidated Santander and many companies has their investments on it. As some companies has a parcel of non-controlling shareholders, this amount refers to the valuation of the equity of that Fund and as a consequence the effect on each company. b) Changes The changes in the balance of “Non-controlling interests” are summarized as follows: Thousand of reais 2018 2017 2016 Balance at beginning of year 436,894 725,504 435,062 Additions / disposals (net) due to change in the scope of consolidation (1) (2) 6,849 (660,230) 159,469 Incorporation / Acquisition (4) - 296,184 - Dividends paid / Interest on Capital (60,936) (133,641) (18,140) Capital increase (3) 48,000 - 20,000 Profit attributable to non-controlling interests 217,441 213,984 130,355 Transition Adjustments to the amendments to the IAS 19 - (1,790) (1,604) (106,440) - - Update of SBAC Fund Quotas 58,454 - - Others (7,677) (3,117) 362 Balance at end of year 592,585 436,894 725,504 (1) In 2017 refers mainly to the participation of non-controlling shareholders of BW Guirapá, in 2016 refers to BW Guirapá. (2) In 2017 refers mainly to the balance of Non-controlling Shareholding of Santander Corretora de Seguros. (3) Increase in the share capital of Olé Consignado. (4) In 2017, it refers mainly to the balance of non-controlling interests of Santander Corretora de Seguros, prior to the merger events (Note 3). |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders' equity [Abstract] | |
Shareholders' equity | 28. Shareholders' equity a) Capital According to the by-laws, Banco Santander's share capital may be increased up to the limit of its 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, subject to the established legal limits on the number of preferred shares. Any capital increase that exceeds this limit will require shareholders` approval. The capital stock, fully subscribed and paid, is divided into registered book-entry shares with no par value. Thousand of shares 2018 2017 Common Preferred Total Common Preferred Total Brazilian residents 82,043 107,699 189,742 66,207 91,779 157,986 Foreign residents 3,736,652 3,572,137 7,308,789 3,752,488 3,588,057 7,340,545 Total shares 3,818,695 3,679,836 7,498,531 3,818,695 3,679,836 7,498,531 (-) Treasury shares (13,317) (13,317) (26,634) (5,845) (5,845) (11,690) Total outstanding 3,805,378 3,666,519 7,471,897 3,812,850 3,673,991 7,486,841 Thousand of shares 2016 Common Preferred Total Brazilian residents 67,498 92,949 160,447 Foreign residents 3,783,473 3,619,163 7,402,636 Total shares 3,850,971 3,712,112 7,563,083 (-) Treasury shares (25,786) (25,786) (51,572) Total outstanding 3,825,185 3,686,326 7,511,511 b) Dividends and Interest on Capital According to the Bank's by-laws, shareholders are entitled to a minimum dividend equivalent to 25% of net income for the year, adjusted according to legislation. Preferred shares are nonvoting and nonconvertible, but have the same rights and advantages granted to common shares, in addition to priority in the payment of dividends at a rate that is 10% higher than those paid on common shares, and in the capital reimbursement, without premium, in the event of liquidation of the Bank. Dividend payments have been calculated and paid in accordance with Brazilian Corporate Law. Prior to the annual shareholders meeting, the Board of Directors may resolve on the declaration and payment of dividends on earnings based on (i) financial statements or earning reserves shown in the last financial statement; or (ii) financial statements issued in the period shorter than 6 months, since the total dividends paid in each half of the fiscal year shall do not exceed the amount of capital reserves. These dividends are fully attributed to the mandatory dividend. 2018 Thousand of reais Real per Thousand Shares / Units Common Preferred Units Interest on Capital (1) (6) 600,000 76.3304 83.9634 160.2938 Intercalary Dividends (2) (6) 600,000 76.4956 84.1451 160.6407 Interest on Capital (3) (6) 600,000 76.4985 84.1484 160.6469 Interest on Capital (4) (6) 2,880,000 367.4149 404.1564 771.5713 Intercalary Dividends (5) (6) 1,920,000 244.9433 269.4376 514.3809 Total 6,600,000 (1) Established by the Board of Directors in March 27, 2018, Common Shares - R$64.8808, preferred - R$71.3689 e Units - R$136.2497 net of taxes and were be paid in April 26, 2018, without any remuneration for monetary restatement. (2) Established by the Board of Directors in June 2018, and were be paid on July 27, 2018 without any compensation as monetary correction. (3) Established by the Board of Directors in September 28, 2018, Common Shares - R$65.0237, preferred - R$71.5261 e Units - R$136.5498 net of taxes and were be paid in October 26, 2018, without any remuneration for monetary restatement. (4) Established by the Board of Directors in December 28, 2018, Common Shares - R$312.3027, preferred - R$343.5329 e Units - R$655.8356 net of taxes and will be paid in February 26, 2019, without any remuneration for monetary restatement. (5) Established by the Board of Directors in December 28, 2018, and will be paid on February 26, 2019 without any compensation as monetary correction. (6) The amount of interest on stockholders' equity will be fully charged to the mandatory minimum dividends to be distributed by the Bank for the year 2018. 2017 Thousand of reais Real per Thousand Shares / Units Common Preferred Units Interest on Capital (1) (6) 500,000 63.3780 69.7158 133.0938 Interest on Capital (2) (6) 500,000 63.5280 69.8808 133.4088 Interest on Capital (3) (6) 500,000 63.5917 69.9509 133.5426 Intercalary Dividends (4) (6) 2,500,000 318.2994 350.1293 668.4287 Interest on Capital (5) (6) 2,300,000 292.8354 322.1190 614.9544 Total 6,300,000 (1) Established by the Board of Directors in April 2017, Common Shares - R$53.8713, preferred - R$59.2584 and Units - R$113.1297 net of taxes, and was paid on May 26, 2017 without any compensation as monetary correction. (2) Established by the Board of Directors in July 2017, Common Shares - R$53.9988, preferred - R$59.3987 and Units - R$113.3975 net of taxes, and was paid on August 25, 2017 without any compensation as monetary correction. (3) Established by the Board of Directors in September 2017, Common Shares - R$54.0530, preferred - R$59.4583 and Units - R$113.5113 net of taxes, and was paid on October 26, 2017 without any compensation as monetary correction. (4) Established by the Board of Directors in December 2017, and was paid on February 26, 2018 without any compensation as monetary correction. (5) Established by the Board of Directors in December 2017, Common Shares - R$248.9101, preferred - R$273.8011 and Units - R$522.7112 net of taxes, was paid on February 26, 2018 without any compensation as monetary correction.. (6) The amount of interest on shareholders' equity and interim dividends was fully charged to the mandatory dividends for the year 2017. 2016 Thousand of reais Reais per Thousand Shares / Units Common Preferred Units Intercalary Dividends (1) (5) 500,000 63.4290 69.7719 133.2009 Intermediary Dividends (2) (5) 700,000 88.8309 97.7140 186.5449 Intercalary Dividends (2) (5) 700,000 88.8309 97.7140 186.5449 Interest on Capital (3) (5) 3,350,000 425.1192 467.6311 892.7503 Total 5,250,000 (1) Established by the Board of Directors in June 2016, Common Shares - R$53.9146, preferred - R$59.3061 and Units - R$113.2207 net of taxes. (2) Established by the Board of Directors in December 2016. (3) Established by the Board of Directors in December 2016, Common Shares- R$361.3513, preferred - R$397.4864 and Units - R$758.8377 net of taxes. (4) 'The amount of the interest on capital were fully input into the mandatory dividends for the year 2016 and were be paid from August 26, 2016 without any compensation as monetary correction. (5) The amount of intermediate, intercalary dividends and interest on capital will be fully attributed to supplementary and mandatory dividends for the year 2016 and was paid on February 23, 2017, without any compensation to the restatement. c) Reserves The reserves are allocated as follows after the deductions and statutory provisions, from the net income: Legal reserve In accordance with Brazilian Corporate Law, 5% is transferred to the legal reserve, until it reaches 20% of the share capital. This reserve is designed to ensure the integrity of the 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 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 shareholders remuneration. d) Treasury shares In the meeting held on November 1, 2018, the Bank's Board of Directors approved, in continuation of the buyback program that expired on November 1, 2017, the buyback program of its Units and ADRs, by the Bank or its agency in Cayman, to be held in treasury or subsequently sold. The Buyback Program will cover the acquisition up to 37,753,760 Units, representing 37,753,760 common shares and 37,753,760 preferred shares, or the ADRs, which, on December 31, 2018, corresponded to approximately 1% of the Bank's share capital. On December 31, 2018, the Bank held 362,227,661 common shares and 390,032,076 preferred shares being traded. The Buyback has the purpose to (1) maximize the value creation to stockholders by means of an efficient capital structure management; and (2) enable the payment of officers, management level employees and others Bank's employees and companies under its control, according to the Long Term Incentive Plans. The term of the Buyback Program is 12 months counted from November 6, 2018, and will expire on November 5, 2019. 2018 2017 2016 Quantity Quantity Quantity Units Units Units ADRs Treasury shares at beginning of the period 1,773 25,786 7,080 13,138 Shares Acquisitions 15,816 12,768 14,284 - Cancellation of Shares (1)(2)(3) - (32,276) 13,138 (13,138) Payment - Share-based compensation (4,272) (4,505) (8,716) - Treasury shares at end of the period 13,317 1,773 25,786 - Balance of Treasury Shares in thousand of reais (2) R$ 460,550 R$ 148,246 R$ 513,889 R$ 0 R$ 882 R$ 194 R$ 145 R$ 0 Balance of Treasury Shares in thousands of reais R$ 461,432 R$ 148,440 R$ 514,034 R$ 0 Cost/Share Price Units Units Units ADRs Minimum cost R$7.55 R$7.55 R$7.55 US$ 4,37 Weighted average cost R$28.59 R$24.41 R$19.93 US$ 6,17 Maximum cost R$43.84 R$32.29 R$26.81 US$ 10,21 Share Price R$42.70 R$31.88 R$28.32 US$ 8,58 (1) In January 2016 was the transformation of all ADRs that were held in treasury for UNIT's. (2)At the EGM held on September, 18, 2017, it was approved the cancellation of 64,551,366 treasury shares (equivalent to 32,276 thousand Units) with the counterparty headings Capital Reserves and Profit Reserves, which represent the total of treasury shares registered in the book of common shares at that date, without reduction of the capital and consequent change in the clause 5th from the Bylaws in order to reflect the new quantities of common and preferred shares, nominatives and without value which represent the Banco Santander´s capital. Additionally, in the year ended December 31, 2018, treasury shares were sold, that resulted in a loss of R$15,868 (2017 - R$2,498 and 2016 - R$11,574) recorded directly in equity in capital reserves. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings per share [Abstract] | |
Earnings per share | 29. Earnings per share a) Basic earnings per share Basic earnings per share is calculated by dividing the net profit attributable to the Parent by the weighted average outstanding shares during the year average number, excluding the average number of own shares held during the year and held in treasury. 2018 2017 2016 Profit attributable to the Parent 12,582,477 8,924,064 7,334,563 Earnings per share (Brazilian Reais) Basic earnings per 1,000 shares (Brazilian Reais) Common shares 1,604.34 1,133.43 929.93 Preferred shares 1,764.78 1,246.77 1,022.92 Net Profit attributable - Basic (Brazilian Reais) Common shares 6,108,349 4,332,026 3,560,288 Preferred shares 6,474,128 4,592,038 3,774,275 Weighted average shares outstanding - Basic Common shares 3,807,386 3,822,057 3,828,555 Preferred shares 3,668,527 3,683,145 3,689,696 b) Diluted earning per share The diluted earnings per share is calculated by dividing the net profit attributable to the Parent by the weighted average outstanding shares during the year average number, excluding the average number of own shares held during the year and held in treasury, including the effect of dilutive potential programs long-term compensation. 2018 2017 2016 Profit attributable to the Parent 12,582,477 8,924,064 7,334,563 Earnings per share (Brazilian Reais) Diluted earnings per 1,000 shares (Brazilian Reais) Common shares 1,604.34 1,132.44 929.03 Preferred shares 1,764.78 1,245.69 1,021.93 Net Profit attributable - Basic (Brazilian Reais) Common shares 6,108,349 4,331,955 3,560,222 Preferred shares 6,474,128 4,592,109 3,774,341 Weighted average shares outstanding (in thousand) - Diluted Common shares 3,807,386 3,825,313 3,832,211 Incremental shares from stock options granted under Stock Option Plan - Units (1) - 3,257 3,656 Preferred shares 3,668,527 3,686,401 3,693,352 Incremental shares from stock options granted under Stock Option Plan - Units (1) - 3,257 3,656 (1) The exercise period of the SOP 2013 Long Term Incentive Plan purchase option ended in June 2018. The Bank does not have stock-based compensation plans in force (Note 40) and consequently has no anti-dilution items. |
Fair value of financial assets
Fair value of financial assets and liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Fair value of financial assets and liabilities [Abstract] | |
Fair value of financial assets and liabilities | 30. Fair value of financial assets and liabilities Under IFRS 13, the fair value measurement uses a fair value hierarchy that reflects the model used in the measurement process which should be in accordance with the following hierarchical levels: Level 1: Determined on the basis of public (unadjusted) quoted prices in active markets for identical assets and liabilities, these include public debt securities, stocks, derivatives listed. Level 2: They are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices). Level 3: They are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). Trading Financial Assets, Other financial assets at fair value on through income statement, Available-for-sale financial assets and Financial liabilities held for trading. Level 1: The securities with high liquidity and quoted prices in active market are classified as level 1. At this level there were classified most of the Brazilian Government Securities (mainly LTN, LFT, NTN-B, NTN-C and NTN-F), shares in stock exchange and other securities traded in the active market. Level 2: When quoted price cannot be observed, the Management, using its own internal models, make 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. Various techniques are used to make these estimates, including the extrapolation of observable market data and extrapolation techniques. The best evidence of fair value of a financial instrument on 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 instrument or similar instruments or can be measured using a valuation technique in which the variables used include only data from observable market, especially interest rates. These securities are classified within Level 2 of the fair value hierarchy and are composed mainly by Private Securities (highlighting the Debenture portfolio) in a market with less liquidity than those classified at Level 1. Level 3: When there is information that is not based on observable market data, Banco Santander uses internally developed models, from curves generated according to the internal model. Level 3 comprises mainly unlisted shares. Derivatives Level 1: Derivatives traded on stock exchanges are classified in Level 1 of the hierarchy. Level 2: For derivatives traded over the counter, the valuation (primarily swaps and options) usually uses observable market data, such as: exchange rates, interest rates, volatility, correlation between indexes and market liquidity. When pricing the financial instruments aforementioned, it is used the Black-Scholes Model (exchange rate options, interest rate options; caps and floors) and the present value method (discount of future values by market curves). Level 3: Derivatives not traded in the stock exchange and that do not have an observable data in a active market were classified as Level 3. These are composed by exotic derivatives. The new Banco Santander´s policy related to instrument classification in the fair value hierarchy existing since September/2018, introduced detailed procedures about the instrument classification process. Definitions were included related to instruments, risk factors and deadlines as well as observability degree of market prices and its importance in the fair value measurement model. The application of such definitions since September 2018 resulted in reclassifications of certain financial instruments, as shown in the section “Changes of Fair Value Level 3”. The following table shows a summary of the fair values of financial assets and liabilities for the period ended December 31, 2018, 2017 and 2016, classified based on several measurement methods adopted by the Bank to determine their fair value: Thousand of reais 2018 Level 1 (1) Level 2 Level 3 Total Financial Assets Measured At Fair Value Through Profit Or Loss 2,660,859 40,540,054 510,887 43,711,800 Debt instruments 2,660,859 - 510,887 3,171,746 Equity instruments - 40,540,054 - 40,540,054 Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading 49,855,112 17,626,932 1,370,270 68,852,314 Debt instruments 49,094,924 432,910 538,635 50,066,469 Equity instruments 757,843 8,490 - 766,333 Derivatives 2,345 17,185,532 831,635 18,019,512 Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss 142,732 619,798 154,947 917,477 Loans and advances to customers - 619,180 - 619,180 Equity instruments 142,732 618 154,947 298,297 Financial Assets Measured At Fair Value Through Other Comprehensive Income 83,283,924 1,442,797 709,956 85,436,677 Debt instruments 83,253,117 1,442,797 699,777 85,395,691 Equity instruments 30,807 - 10,179 40,986 Hedging derivatives (assets) - 343,934 - 343,934 Financial Liabilities Measured At Fair Value Through Profit Or Loss 32,697,510 17,600,024 641,458 50,938,992 Derivatives 1,833 17,600,024 641,458 18,243,315 Short positions 32,695,677 - - 32,695,677 Hedging derivatives (liabilities) - 223,520 - 223,520 (1) There was no transfer between levels 1 and 2. Thousand of reais 2017 Level 2 Level 3 Total Financial assets held for trading 34,380,542 18,059,034 - 52,439,576 Debt instruments 33,891,360 988,321 - 34,879,681 Equity instruments 489,182 588 - 489,770 Trading derivatives - 17,070,125 - 17,070,125 Financial assets designated at fair value through profit or loss 1,593,951 64,738 33,368 1,692,057 Debt instruments 1,593,951 64,738 - 1,658,689 Equity instruments - - 33,368 33,368 Financial assets - available-for-sale 79,301,016 6,382,225 140,143 85,823,384 Debt instruments 78,335,629 6,381,118 - 84,716,747 Equity instruments 965,387 1,107 140,143 1,106,637 Hedging derivatives (assets) - 192,763 - 192,763 Financial liabilities held for trading 32,808,392 16,514,154 - 49,322,546 Derivatives - 16,514,154 - 16,514,154 Short positions 32,808,392 - - 32,808,392 Hedging derivatives (liabilities) - 163,332 - 163,332 Thousand of reais 2016 Level 2 Level 3 Total Financial assets held for trading 59,410,908 25,462,755 - 84,873,663 Debt instruments 59,034,363 960,583 - 59,994,946 Equity instruments 376,545 21,916 - 398,461 Derivatives - 24,480,256 - 24,480,256 Financial assets designated at fair value through profit or loss 1,597,660 76,035 37,509 1,711,204 Debt instruments 1,592,714 76,035 - 1,668,749 Equity instruments 4,946 - 37,509 42,455 Financial assets - available-for-sale 51,160,044 5,703,389 951,612 57,815,045 Debt instruments 50,172,609 5,656,963 - 55,829,572 Equity instruments 987,435 46,426 951,612 1,985,473 Hedging derivatives (assets) - 222,717 - 222,717 Financial liabilities held for trading 31,694,269 19,925,600 - 51,619,869 Derivatives - 19,925,600 - 19,925,600 Short positions 31,694,269 - - 31,694,269 Hedging derivatives (liabilities) - 311,015 - 311,015 Movements in fair value of Level 3 The following tables demonstrate the movements during 2018, 2017 and 2016 for the financial assets and liabilities classified as Level 3 in the fair value hierarchy: Thousand of reais Fair Value Gains/ losses (Realized-Not Realized) Transfers in and/ or out of Level 3 Additions / Settled Impact of IFRS 9 Fair value Financial Assets Measured At Fair Value Through Profit Or Loss 33,368 60,887 - 445,991 (29,359) 510,887 Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading - (181,355) 1,264,576 246,051 40,998 1,370,270 Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss - (7,280) - - - 162,227 154,947 Financial Assets Measured At Fair Value Through Other Comprehensive Income 140,143 47,773 645,708 - (123,668) 709,956 Financial Liabilities Measured At Fair Value Through Profit Or Loss - 115,212 710,219 (183,973) - 641,458 Thousand of reais Fair Value Gains/ losses (Realized-Not Realized) Transfers in and/ or out of Level 3 Additions Settled Fair value Financial assets designated at fair value through profit or loss 37,509 (2,555) - (1,586) (1,586) 31,782 Financial assets - available-for-sale 951,612 18,474 - (829,943) (829,943) (689,800) Thousand of reais Fair Value Gains/ losses (Realized-Not Realized) Transfers in and/ or out of Level 3 Additions Settled Fair value Financial assets held for trading - - - - - - Financial assets designated at fair value through profit or loss 573,664 2,806 (14,345) 111 (524,727) 37,509 Financial assets - available-for-sale 857,817 (60,934) (3,085) 461,185 (303,371) 951,612 Fair value movements linked to credit risk Changes in fair value attributable to changes in credit risk are determined on the basis of changes in the prices of credit default swaps compared to similar obligations of the same obligor when such prices are observable, since these credit swaps better reflect the market risk assessment for a specific financial asset. When such prices are not observable, changes in fair value attributable to changes in credit risk are determined as the total value of changes in fair value not attributable to changes in the underlying interest rate or other observed market rates. In the absence of specific observable data, this approach provides a reasonable approximation of changes attributable to credit risk, as it estimates the margin change above the reference value that the market may require for the financial asset. In 2018, there were no significant changes between the fair value categories due to changes in credit risk. Financial assets and liabilities not measured at fair value The financial assets owned by the Bank are measured at fair value in the accompanying consolidated balance sheets, except for loans and receivables. Similarly, the Bank's financial liabilities except for financial liabilities held for trading and those measured at fair value - are measured at amortized cost in the consolidated balance sheets. i) Financial assets measured at other than fair value Below is a comparison of the carrying amounts of financial assets of the Bank measured by a value other than the fair value and their respective fair values on December 31, 2018, 2017 and 2016: Thousand of reais 2018 Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Money market investments - Brazilian Central Bank (note 4) 15,228,491 15,269,809 - 15,269,809 - Financial Assets Measured At Amortized Cost: Loans and amounts due from credit institutions (note 5) 79,607,001 79,607,197 - 79,607,197 - Loans and advances to customers (note 9) 301,702,207 303,495,240 - - 303,495,240 Financial Assets Measured At Amortized Cost - Debt instruments (note 6) 36,799,509 38,927,356 9,766,162 29,161,194 - Total 433,337,208 437,299,602 9,766,162 124,038,200 303,495,240 Thousand of reais 2017 Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Money market investments - Brazilian Central Bank (note 5) 33,831,521 33,914,021 - 33,914,021 - Investments Held-to-Maturity (note 6) 10,214,454 10,587,117 7,251,246 3,335,871 - Loans and receivables: Loans and amounts due from credit institutions (note 5) 65,209,902 65,209,902 - 65,209,902 - Loans and advances to customers (note 9) 272,420,157 275,647,324 - - 275,647,324 Loans and receivables - Debt instruments (note 6) 17,616,515 17,127,511 - 17,127,511 - Total 399,292,549 402,485,875 7,251,246 119,587,305 275,647,324 Thousand of reais 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Money market investments - Brazilian Central Bank (note 4) 46,371,814 46,341,971 - 46,341,971 - Investments Held-to-Maturity (note 6) 10,048,761 10,555,437 6,942,173 3,613,264 - Loans and receivables: Loans and amounts due from credit institutions (note 5) 65,711,001 65,711,001 - 65,711,001 - Loans and advances to customers (note 9) 252,002,774 253,860,027 - - 253,860,027 Loans and receivables - Debt instruments (note 6) 16,283,259 16,003,885 - 16,003,885 - Total 390,417,609 392,472,321 6,942,173 72,530,121 253,860,027 ii) Financial liabilities measured at other than fair value Following is a comparison of the carrying amounts of Bank´s financial liabilities measured by a value other than fair value and their respective fair values on December 31 , 2018, 2017 and 2016: Thousand of reais 2018 Carrying Amount Fair Value Level 1 Level 2 Level 3 Liabilities Financial liabilities at amortized cost: Deposits from Bacen and credit institutions (note 16) 98,716,735 98,713,988 - 98,713,988 - Customer deposits (note 17) 285,344,281 285,417,696 - 285,417,696 - Marketable debt securities (note 18) 74,626,232 74,783,289 - 4,599,204 70,184,085 Subordinated liabilities (note 19) 9,885,607 9,853,157 - 9,853,157 - Debt Instruments Eligible to Compose Capital (note 20) 9,779,944 9,782,373 - 9,782,373 - Other financial liabilities (note 21) 49,782,780 49,782,780 - - 49,782,780 Total 528,135,579 528,333,283 - 408,366,418 119,966,865 Thousand of reais 2017 Carrying Amount Fair Value Level 1 Level 2 Level 3 Liabilities Financial liabilities at amortized cost: Centrals banks (note 16) 79,068,604 79,068,564 - - 79,068,564 Customers (note 17) 258,482,156 258,576,177 - - 258,576,177 Marketable debt securities (note 18) 70,247,012 70,245,820 - 2,000,552 68,245,268 Subordinated liabilities (note 19) 519,230 528,799 - - 528,799 Debt Instruments Eligible to Compose Capital (note 20) 8,436,901 8,436,901 - 8,436,901 - Other financial liabilities (note 21) 44,260,735 43,003,735 - - 43,003,735 Total 461,014,638 459,859,996 - 10,437,453 449,422,543 Thousand of reais 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Liabilities Financial liabilities at amortized cost: Centrals banks (note 16) 78,319,960 78,323,271 - - 78,323,271 Customers (note 17) 231,079,303 231,125,526 - - 231,125,526 Marketable debt securities (note 18) 99,842,955 99,671,288 - 7,321,870 92,349,418 Subordinated liabilities (note 19) 466,246 452,439 - - 452,439 Debt Instruments Eligible to Compose Capital (note 20) 8,311,918 8,311,918 - 8,311,918 - Other financial liabilities (note 21) 36,879,099 35,622,099 - - 35,622,099 Total 454,899,481 453,506,541 - 15,633,788 437,872,753 The methods and assumptions used to estimate the fair values summarized in the tables above are set forth below: - Loans and amounts due from credit institutions and from clients - Fair value are estimated for groups of loans with similar characteristics. The fair value was measured by discounting estimated cash flow using the average interest rate of new contracts. That is, the future cash flow of the current loan portfolio is estimated using the contractual rates, and then the new loans spread over the risk free interest rate are incorporated to the risk free yield curve in order to calculate the loan portfolio fair value. In terms of behavior assumptions, it is important to highlight that a prepayment rate is applied to the loan portfolio, thus a more realistic future cash flow is achieved. - Deposits from Bacen and credit institutions and Client deposits - The fair value of deposits was calculated by discounting the difference between the cash flows on a contractual basis and current market rates for instruments with similar maturities. For variable-rate deposits, the carrying amount was considered to approximates fair value. - Debt and Subordinated Securities and Debt Instruments Eligible to Compose Capital - The fair value of long-term loans were estimated by cash flow discounted at the interest rate offered on the market with similar terms and maturities. |
Operational Ratios
Operational Ratios | 12 Months Ended |
Dec. 31, 2018 | |
Operational Ratios [Abstract] | |
Operational Ratios | 31. Operational Ratios Financial institutions are required to maintain Regulatory Capital (RC), Tier I and Principal Capital consistent with their risk activities, higher than the minimum requirement of the Regulatory Capital Requirement, represented by the sum of the partial credit, market and operational risk. The minimum Regulatory Capital requirement was 11% until December 31, 2015, until December 31, 2016 was 9.875%, reducing gradually to 8% on January 1, 2019.. The minimum Total Capital Tier I requirement is 6% from January 1, 2015 and the minimum Principal Capital requirement is 4.5% from October 1, 2013. In July 2008, the regulations governing the measurement of regulatory capital came into force under the Basel II Standardized Approach. These regulations were revoked by Resolution 4,192/2013 and Resolution 4,278/2013, which came into effect in October 2013. Also, Resolutions 4,193 and 4,281 of 2013, which establish the model for calculating minimum requirements for Reference Equity (PR), of Level I and Principal Capital. These Resolutions determine that the composition of the Referential Equity be made through equity, subordinated debt, hybrid capital instruments. The index is calculated on a consolidated basis, as shown below: Financial Conglomerate Thousand of reais 2018 (1) 2017 (1) 2016 (1) Tier I Regulatory Capital 61,476,715 56,386,001 56,264,021 Principal Capital 56,581,518 52,196,893 52,136,837 Supplementary capital 4,895,197 4,189,108 4,127,184 Tier II Regulatory Capital 4,887,175 4,250,447 4,280,864 Regulatory Capital (Tier I and II) 66,363,890 60,636,448 60,544,885 Required Regulatory Capital 440,562,919 383,132,693 36,669,570 Portion of Credit Risk 358,955,592 324,696,458 31,309,944 Market Risk Portions (2) 39,231,773 25,857,109 2,388,626 Operational Risk Portion (3) 42,375,554 32,579,126 2,971,000 Basel I Ratio 13.95 14.72 15.15 Basel Principal Capital 12.84 13.62 14.04 Basel 15.06 15.83 16.30 (1) Amounts calculated based on the consolidated information provided by the Consolidated Prudential. (2) To calculate the capital allocation for credit risk were considered modifications and inclusions of Bacen Circular 3,714 of August 20, 2014, Bacen Circular 3,770 of October 29,2015, which amending Circular 3,644 of March 4, 2013. (3) Includes portions for market risk exposures subject to variations in rates of foreign currency coupons (PJUR2), price indexes (PJUR3) and interest rate (PJUR1/PJUR4), the price of commodities (PCOM), the price of shares classified as trading portfolios (PACS), and portions for gold exposure and foreign currency transactions subject to foreign exchange (PCAM). Banco Santander, quarterly disclose information relating to risk management, a brief description of the Recovery Plan and Required Regulatory Capital (PRE) which is not an extension of the Financial Statements and it isn't audited. A report with further details of the structure and methodology will be disclosed at the website www.santander.com.br/ri. Financial institutions are required to maintain investments in tangible assets compatible with adjusted regulatory capital. Funds invested in tangible assets, calculated on a consolidated basis, are limited to 50% of adjusted regulatory capital, as per prevailing regulation. On December 31, 2018, 2017 and 2016 Banco Santander classifies for said index. |
Interest and similar income
Interest and similar income | 12 Months Ended |
Dec. 31, 2018 | |
Interest and similar income [Abstract] | |
Interest and similar income | 32. Interest and similar income “Interest and similar income” in the consolidated income statement comprises the interest accruing in the year on all financial assets with an implicit or explicit return, calculated by applying the effective interest method, regardless the fair value measurement; and the rectifications of income as a result of hedge accounting. Interest is recognized through its gross value, without deducting any tax withheld at source. The breakdown of the main items of interest and similar charges accrued in 2018, 2017 and 2016 is as follows: Thousand of reais 2018 2017 2016 Cash and balances with the Brazilian Central Bank 5,095,828 5,953,765 7,315,570 Loans and advances - Credit institutions 2,977,670 5,107,355 7,472,729 Loans and advances - Customers 46,471,507 44,507,217 43,977,981 Debt instruments 13,629,167 13,456,802 14,783,164 Other interest 2,304,221 2,393,210 3,596,633 Total 70,478,393 71,418,349 77,146,077 |
Interest expense and similar ch
Interest expense and similar charges | 12 Months Ended |
Dec. 31, 2018 | |
Interest expense and similar charges [Abstract] | |
Interest expense and similar charges | 33. Interest expense and similar charges “Interest expense and similar charges” in the consolidated income statement includes the interest accruing in the year on all financial liabilities with an implicit or explicit return, including remuneration in kind, calculated by applying the effective interest method, regardless the fair value measurement; the rectifications of cost as a result of hedge accounting; and the interest cost attributable to pension funds. The breakdown of the main items of interest expense and similar charges accrued in 2018, 2017 and 2016 is as follows: Thousand of reais 2018 2017 2016 Credit institutions deposits 5,367,471 3,782,781 3,369,931 Debt securities issued 13,576,866 19,490,807 25,693,236 Marketable debt securities and subordinated liabilities: Marketable debt securities (note 18) 4,606,949 7,901,199 12,212,922 Subordinated liabilities (note 19) 25,336 52,984 731,594 Debt Instruments Eligible to Compose Capital (note 20) 604,216 495,188 501,748 Pension Plans (note 22.b) 343,137 292,628 290,920 Other interest (1) 4,033,076 4,456,273 3,759,233 Total 28,557,051 36,471,860 46,559,584 (1) In December 31, 2016, includes R$2,057 million related to the reversal of legal obligations. |
Income from equity instruments
Income from equity instruments | 12 Months Ended |
Dec. 31, 2018 | |
Income from equity instruments [Abstract] | |
Income from equity instruments | 34. Income from equity instruments “Income from equity instruments” includes the dividends and payments on equity instruments out of profits generated by investees after the acquisition of the equity interest. The breakdown of the balance of this item is as follows: Thousand of reais 2018 2017 2016 Equity instruments classified as: Financial assets held for trading - 18,458 21,489 Financial Assets Measured At Fair Value Through Profit Or Loss 27,047 - - Financial assets - available-for-sale - 64,662 237,056 Financial Assets Measured At Fair Value Through Other Comprehensive Income 5,576 - - Total 32,623 83,120 258,545 |
Fee and commission income
Fee and commission income | 12 Months Ended |
Dec. 31, 2018 | |
Fee and commission income [Abstract] | |
Fee and commission income | 35. Fee and commission income “Fee and commission income” comprises the amount of all fees and commissions accruing in favor of the Bank in the year, except those that form an integral part of the effective interest rate on financial instruments. The breakdown of the balance of this item is as follows: Thousand of reais 2018 2017 2016 Collection and payment services: Bills 1,070,258 970,293 789,996 Demand accounts 2,311,925 2,156,384 1,786,175 Cards (Credit and Debit) and Acquiring Services 5,854,503 4,985,306 4,090,766 Checks and other 169,872 172,718 169,100 Orders 622,405 471,763 364,102 Total 10,028,962 8,756,464 7,200,139 Marketing of non-Banking financial products: Investment funds 717,924 819,748 1,014,401 Insurance 2,975,661 2,414,478 2,114,316 Capitalization 402,859 363,516 325,531 Total 4,096,444 3,597,742 3,454,248 Securities services: Securities underwriting and placement 448,914 513,727 357,513 Securities trading 137,617 114,015 115,334 Administration and custody 41,794 191,987 65,667 Asset management 2,173 2,353 1,863 Total 630,497 822,082 540,377 Other: Foreign exchange 934,801 742,676 722,912 Financial guarantees 708,819 672,801 634,375 Other fees and commissions 1,328,928 1,223,778 996,430 Total 2,972,549 2,639,255 2,353,717 Total 17,728,452 15,815,543 13,548,481 |
Fee and commission expense
Fee and commission expense | 12 Months Ended |
Dec. 31, 2018 | |
Fee and commission expense [Abstract] | |
Fee and commission expense | 36. Fee and commission expense Fee and commission expense” shows the amount of all fees and commissions paid or payable in the year, except those that form an integral part of the effective interest rate on financial instruments. The breakdown of the balance of this item is as follows: Thousand of reais 2018 2017 2016 Commissions assigned to third parties (1) 2,364,119 1,975,379 1,620,812 Other fees and commissions 1,232,174 1,118,296 950,073 Total 3,596,293 3,093,675 2,570,885 (1) Composed, mainly, by credit cards. |
Gains or losses on financial as
Gains or losses on financial assets and liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Gains or losses on financial assets and liabilities [Abstract] | |
Gains or losses on financial assets and liabilities | 37. Gains or losses on financial assets and liabilities Gains (losses) on financial assets and liabilities (net) includes the amount of the valuation adjustments of financial instruments, except those attributable to interest accrued as a result of application of the effective interest method and to allowances, and the gains or losses derived from the sale and purchase thereof. The breakdown of the balance of this item, by type of instrument, is as follows: Thousand of reais 2018 2017 2016 Financial Assets Held For Trading (1) - 1,174,111 - 3,166,399 Financial Assets Measured At Fair Value Through Profit Or Loss (138,673) - - Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading (1) (2,764,859) - - Non-Tranding Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss 61,239 - - Other Financial Assets At Fair Value Through Profit Or Loss (2) - 30,694 82,638 Financial Assets Not Measured At Fair Value Through Profit Or Loss (138,104) (122,115) (115,202) Financial Assets available-for-sale Debt instruments (111,750) (156,802) (108,318) Equity instruments (26,354) 34,687 (6,884) Financial Assets Measured At Fair Value Through Other Comprehensive Income Gains or losses from hedge accounting, net 197,595 (113,600) (117,679) Total (2,782,802) 969,090 3,016,156 (1) Includes the exchange hedge of the Bank's interest in Cayman (note 24). (2) Includes the net gain arising from transactions involving debt securities, equity instruments and derivatives included in this portfolio, since the Bank manages its risk in these instruments on a global basis. |
Exchange differences (net)
Exchange differences (net) | 12 Months Ended |
Dec. 31, 2018 | |
Exchange differences (net) [Abstract] | |
Exchange differences (net) | 38. Exchange differences (net) Exchange differences" demonstrate the gains or losses on foreign currency transactions, the differences that arise on translations of monetary items in foreign currencies to the functional currency, and those disclosed on non-monetary assets in foreign currency at the time of their disposal. Thousand of Reais 2018 2017 2016 Revenue with Exchange variations 12,752,765 24,008,382 16,634,809 Expenses with Exchange Variations (15,559,237) (23,403,326) (12,059,995) Total (2,806,471) 605,056 4,574,814 |
Other operating income and expe
Other operating income and expenses | 12 Months Ended |
Dec. 31, 2018 | |
Other operating income and expenses [Abstract] | |
Other operating income and expenses | 39. Other operating income and expenses The breakdown of "Other operating income (expense)" is as follows: Thousand of reais 2018 2017 2016 Ot her operating income (1) 556,715 896,279 690,310 Other operating expense (1) (1,281,764) (1,259,338) (1,067,560) Contributions to the Guarantee of Credit Fund - FGC (330,801) (308,954) (247,321) Total (1,055,850) (672,013) (624,571) (1) On December 31, 2018, it consists mainly of Data Processing Expenses in the balance of R$ 67,724 (2017 - 73,664 and 2016 - R$ 61,186), Services Expenses in balance of R$ 26,852 (2017 - revenue of R$ 87,199 and 2016 - R$ 74,322), Indemnity Funds for Benefit - FGB R$ 34,996 (2017 - 5,334 and 2016 - R$ 172,699), Interest on Capital Income R$ 38,006 (2017 - 20,826 and 2016 - R$ 305) and Recovery of Charges and Expenses R$ 92,408 (2017 - 89,409 and 2016 - 72,360). |
Personnel expenses
Personnel expenses | 12 Months Ended |
Dec. 31, 2018 | |
Personnel expenses [Abstract] | |
Personnel expenses | 40. Personnel expenses a) Breakdown The breakdown of “Personnel expenses” is as follows: Thousand of reais 2018 2017 2016 Wages and salaries 5,812,688 5,713,702 5,377,284 Social security costs 1,404,537 1,381,229 1,273,486 Benefits 1,387,078 1,309,314 1,277,781 Defined benefit pension plans (note 22) 8,939 20,081 24,480 Contributions to defined contribution pension plans 131,388 87,099 86,576 Share-based compensation 58,050 87,293 86,963 Training 62,756 58,338 62,518 Other personnel expenses 340,571 280,222 188,177 Total 9,206,007 8,937,278 8,377,265 b) Share-Based Compensation Banco Santander has long-terms compensation plans linked to the market price of the shares. The members of the Executive Board of Banco Santander are eligible for these plans, as well as other members selected by the Board of Directors, whose selection will take into account seniority of the group. For the Board of Directors members in order to be eligible, it is necessary to exercise Executive Board functions. These amounts are recorded under Other liabilities (note 26) and personnel expenses (Note 40(a)). b.1) Local Program On June 30, 2018, the Stock Option Certificate Purchase Plan (SOP 2013), approved at the EGM of April 29, 2013, was terminated. In 2018, that remains open is the Private Ultra High Long Term Incentive Plan for the Private Banking segment. (i) Share purchase plans Long-Term Incentive Plan - SOP 2013: It is a call option plan with 3 years of duration. The period for the exercise comprised the period between June 30, 2016 to June 30, 2018. The number of Units to be exercised by the participants were determined according to the result of measurement of a performance parameter of the Bank: Total Shareholder Return (TSR) and adjusted by the indicator Return on Assets by Risk (RoRWA), comparison between realized and budgeted in each year. The final result of the plan was 89.61%. b.1.1) Fair Value and Plans Performance Parameters For accounting of the Local Program plans, an independent consultant promoted simulations based on Monte Carlo methodology, as presented the performance parameters used to calculate the shares to be granted. Such parameters are associated with their respective probabilities of occurrence, which are updated at the close of each year. SOP 2013 (1) Total Shareholder Return (TSR) rank % of Exercisable Shares 1st 100% 2nd 75% 3th 50% (1) The percentage of shares determined at the position of TSR is subject to a penalty according to the implementation of the RoRWA. For fair value measurement the following premises was used: SOP 2013 Method of Assessment Black&Scholes Volatility 40.00% Rate of Dividends 3.00% Vesting Period 3 years Average Exercise Time 5 years Risk-Free Rate 11.80% Probability of Occurrence 60.27% Fair Value of the Option Shares R$5,96 The average value of shares SANB11(Shares of the Bank in B3 S.A.) (Current Company Name of BM&FBovespa) in the exercise ended on December 31, 2018 is R$36.25 (12/31/2017 - R$28.47 and 12/31/2016 - R$19.94). On 2018, no pro rata expenses were recorded (2017- no pro rata expenses were recorded and 2016 - R$15,789), related to the Stock Option Certificate (SOP). Date of Commencement Expiration Number of Exercise of Fiscal Date of Fiscal Units Price in Reais Year Granted Employees Year Year Final Balance on December 31, 2016 1,986,258 Exercised options (SOP - 2013) (869,247) 12.84 2013 Executives 06/30/16 06/30/18 Final Balance on December 31, 2017 1,117,011 Exercised options (SOP - 2013) (732,169) 12.84 2013 Executives 06/30/16 06/30/18 Cancelled options (SOP - 2013) (384,842) 12.84 2013 Executives 06/30/16 06/30/18 Final Balance on December 31, 2018 - (ii) Local Long-Term Incentive Plan - Cash Long-Term Incentive Plan - Private Ultra High: aims to align the interests of Banco Santander and the Participant with views, on the one hand, to the growth and profitability of the Private business and, on the other hand, recognition of the Participant's contribution . The Plan has as its objective the payment by the Bank to the Participants as Variable Remuneration. Each participant has a target reference in Reais and the exact amount of the bonus will be determined by the measurement of the following performance indicators, with payments made in two installments: the first in March 2020 and the second in March 2021. Indicators - Phase 1 (Reference Value) • BAI of 2017. Indicators - Phase 2 (Calculation of Cash Incentive) • BAI - 50% (Benefit Indicator before Private Ultra High Segment Taxes); • MOL - 25% (Private Ultra High Segment Net Margin Indicator); and • AUM - 25% (Assets Under Management Indicator of Private Ultra High Segment). In December 2018, the reversal of the recorded provision related to the local long-term incentive plan - Private Ultra High due to the probability of non-compliance with the acquisition condition related to the performance target. Management will follow the performance parameter of the plan until December 2019. The amount of the expense with the provision related to this plan registered in 2017 was R$ 2,935. b.2) Global Program Long-Term Incentive Policy In 2014, a share delivery plan called Long Term Incentive Global CRDIV - Grant 2014 was released. This plan was subject to achievement of performance indicator Total Shareholder Return (TSR) of the Santander Group, comparing the evolution of the Group in this indicator for the main global competitors and the settlement would be in the Group Santander Spain shares. In 2016, a stock delivery plan called Plan 2nd Global Long -Term Incentive CRDIV - Grant 2015 was launched. Global Plan Fair Value 1st Long-Term Incentive Global Plan Grant 2014 - ILP CRDIV It is assumed that the grantee would not leave the Bank's employment during the term of each plan. The fair value of the 50% linked to the Bank's relative TSR position was calculated, on the grant date, on the basis of the report provided by external valuators whose assessment was carried out using a Monte Carlo valuation model, performing 10 thousand simulations to determine the TSR of each of the companies in the Benchmark Group, taking into account the variables set forth below. The results (each of which represents the delivery of a number of shares) were classified in decreasing order by calculating the weighted average and discounting the amount at the risk-free interest rate. In view of the high correlation between RTA and LPA, it can be considered (in a high percentage of cases) feasible to extrapolate that the RTA value is also valid for LPA. Therefore, it was initially determined that the fair value of the portion of the plans linked to the Bank's relative LPA position, of the remaining 50% of the options granted, was the same as that of the 50% corresponding to the TSR. This valuation was reviewed and adjusted on a yearly basis, since its refers to a non-market condition. Long Term Incentive Global CRDIV - Grant 2014 2 years 3 years 4 years Future income Dividend 11.1% 10,80% 9,50% Expected Volatility 32.7% 34,70% 36,90% Volatility comparator 12% - 52% 16% - 56% 16% - 52% Risk-free interest rate 1.7% 2,10% 2,50% Correlation 0.55% 0.55% 0.55% The indicator used to measure the achievement of targets was the comparison of the Total Shareholder Return (TSR) of the Santander Group with the RTA of fifteen leading the Group's global competitors. The indicator was calculated in two stages: initially for program verification in 2014 and a second time in the annual payment of each installment (2015, 2016 and 2017). Each executive had a target in reais that was converted to shares of Santander Group, by the price of R$19.2893. These shares would be delivered in the years, 2017 and 2018, with sale restriction of one year after each delivery. 2nd Long -Term Incentive Global Plan CRDIV - Grant 2015. The agreed ILP values for each participant will be obtained from the verification of the achievement of indicators in two moments: the first time to determine the eligibility (2015-2016) and a second time to calculate the number of actions due (2016, 2017 and 2018). Indicators - First time • RTA versus Competitors; and • ROTE Bank versus Budget. Indicators - Second time • RTA versus Competitors; • ROTE Bank versus Budget; • Employee satisfaction; • Customer satisfaction; and • Corporate main bank costumer indicator versus Budget. Each executive has a target in reais that was converted to shares of Santander Bank Spain by the price of R$17.473. These shares will be delivered in 2019, with sale restriction of one (1) year after the delivery. Number of Shares Granted Year Employees Data of Commencement of the Fiscal Year Data of Expiry of Fiscal Year 1st Long Term Incentive Global CRDIV - Grant 2014 1,613,057 2014 Executives jan - 2014 dec - 2017 Cancelled Shares (Grantec - 2014) (1,613,057) 2014 Executives jan - 2014 dec - 2017 2nd Long -Term Incentive Global Plan CRDIV - Grant 2015 1,775,049 2016 Executives jan - 2015 dec - 2017 Balance Plans on December 31, 2017 1,775,049 In 2018, were recognized daily pro-rata expenses amounted to R$5,624 (2017 - R$4.797 and 2016 - no expenses registered), related to costs to the respective dates of the above cycles, for total plans of the Global Program. Plans do not result in dilution of the share capital of the Bank, because they are paid in shares of Banco Santander Spain. b.3) Variable Remuneration based in shares On September 29, 2015, the Board of Directors approved the proposed new incentive plan (deferral) for payment of the variable compensation of directors and certain employees, which was approved in EGM of December 14, 2015. The approval of the proposal of the current incentive plan (deferment) to pay the variable remuneration of administrators and certain employees occurred on October 25, 2016, as approved by the EGM held on December 21, 2016. In this proposal, certain requirements for future deferred payment of a portion of the variable compensation due to its managers and other employees were considered, considering the long-term sustainable financial bases and adjustments in future payments based on the risks assumed and the changes in the cost of capital. The Banco Santander´s variable compensation plan has been assessed and became divided into two programs: (i) Collective Identified and (ii) Collective unidentified. a) Collective Identified - Participants of the Executive Committee, Statutory Directors and other executives who take significant risks in the Bank and are responsible for the control areas. The deferral will be half in cash, indexed by 100% of CDI and half in shares (SANB11). On the exercise ended on December 31, 2018, was recorded loss amounted to R$50,896 (2017 - R$81,838 and 2016 - R$52,500), regarding the provision of the deferral plan in shares. b) Collective Unidentified - managerial employees and other employees of the organization that will be benefited from the deferral plan. The deferred amount will be paid 100% cash, indexed by 100% of CDI. On the year ended on December 31, 2018, there were expense of R$74,871 (2017 - R$124,926 and 2016 - R$79,794). |
Other general administrative ex
Other general administrative expenses | 12 Months Ended |
Dec. 31, 2018 | |
Other general administrative expenses [Abstract] | |
Other general administrative expenses | 41. Other general administrative expenses a) Breakdown The detail of other general administrative expenses is as follows: Thousand of reais 2018 2017 2016 Property, fixtures and supplies 1,330,549 1,284,490 1,278,556 Technology and systems 1,786,416 1,364,720 1,246,809 Advertising 621,645 617,563 486,772 Communications 457,323 593,272 488,799 Per diems and travel expenses 127,277 106,956 133,123 Taxes other than income tax 88,977 122,570 84,932 Surveillance and cash courier services 617,129 630,466 622,362 Insurance premiums 29,434 27,289 21,308 Specialized and technical services 2,089,614 1,901,056 1,744,726 Technical reports 359,468 370,546 437,683 Others specialized and technical services 1,730,146 1,530,510 1,307,043 Other administrative expenses (1) 437,767 534,935 435,758 Total 7,586,131 7,183,317 6,543,145 (1) In December 31, 2018, includes mainly Data Processing Expenses in the balance of R$ 67.724 (2017 - 73.664 and 2016 - R $ 61.186), Service Expenses in the balance of R$ 26.852 (2017 - revenue of R$ 87.199 and 2016 - R$ 74.322), Expenses with Benefit Guarantor Fund - FGB R$ 34.996 (2017 - R$ 5.334 and 2016 - R$ 172.699), Interest on Own Capital R$ 38,006 (2017 - R$ 20.826 and 2016 - R$ 305) and Recovery of Charges and Expenses R $ 92.408 (2017 - R$ 89.409 and 2016 - R$ 72.360). b) Other information The balance of “Technical reports” includes the fees paid by the consolidated companies to their respective auditors, the detail are as follows: Millions of Reais 2018 2017 2016 Audit of the annual financial statements of the companies audited by external audit (1)(2) (constant scope of consolidation) 19.9 17.5 9.2 Audit Related 0.5 3.9 0.1 Others 0.1 1.3 0.7 Total 20.5 22.7 10.0 (1) In 2017, includes R$2.3 million referring to auditing work for the 2016 fiscal year. The approximate value of taxes according to law 12,741/2012 totaled R$2.9 million (2017 - R$3.7 million and 2016 - R$1.8 million). Services provided by other audit firms totaled R$1.3 million (2017 - R$13.2 million and 2016 - R$4.9 million). |
Gains or losses on non financia
Gains or losses on non financial assets and investments, net | 12 Months Ended |
Dec. 31, 2018 | |
Gains or losses on non financial assets and investments, net [Abstract] | |
Gains or losses on non financial assets and investments, net | 42. Gains or losses on non financial assets and investments, net The breakdown of the balance of this item is as follows: Thousand of reais 2018 2017 2016 Gains 11,627 1,798 12,584 Tangible and intangible assets 11,627 1,798 12,575 Investments - - 9 Losses (37,103) (66,100) (8,768) Tangible and intangible assets (37,103) (13,719) (7,547) Investments (1) - (52,381) (1,221) Total (25,476) (64,302) 3,816 (1) In 2017, includes the amount of R$41,999 related to the sale of BW Guirapá I S.A. |
Gains (losses) on disposal and
Gains (losses) on disposal and expenses of non-current assets held for sale not classified as discontinued operations | 12 Months Ended |
Dec. 31, 2018 | |
Gains (losses) on disposal and expenses of non-current assets held for sale not classified as discontinued operations [Abstract] | |
Gains (losses) on disposal and expenses of non-current assets held for sale not classified as discontinued operations | 43. Gains (losses) on disposal and expenses of non-current assets held for sale not classified as discontinued operations As of December 31, 2018, income of R$181 million is mainly comprised of R$104 million of income from the reversal of the provision for impairment of properties and R$78 million from the sale of assets received in the recovery of credits with clients, and at December 31, 2017, includes, mainly, R$272 million provisions for devaluations on real estate, constituted from appraisal reports prepared by specialized external consulting and at December 31, 2016, basically refers to the result on disposal of assets received in the processes of recovery of loans with customers and the provision for the recoverable amount of these assets. |
Other disclosures
Other disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Other disclosures [Abstract] | |
Other disclosures | 44. Other disclosures a) Guarantees and commitments The Bank provides a variety of guarantees to its clients to improve their credit standing and allow them to compete The following table summarizes at December 31, 2018, 2017 and 2016 all of the guarantees. As required, the “maximum potential amount of future payments” represents the notional amounts that could be considered as a loss if there were a total default by the guaranteed parties, without consideration of possible recoveries from collateral held or pledged, or recoveries under recourse provisions. There is no relationship between these amounts and probable losses on these guarantees. In fact, "maximum potential amount of future payments" significantly exceeds inherent losses. Thousand of reais 2018 2017 2016 Maximum potential amount of future payments Contingent liabilities Guarantees and other sureties 39,081,803 40,729,544 32,629,975 Financial guarantees 27,216,418 37,007,057 24,475,507 Performance guarantees 907,856 486,091 532,232 Financial letters of credit 10,860,425 3,110,918 7,462,761 Other 97,104 125,478 159,475 Other contingent exposures 3,178,671 1,915,492 635,055 Documentary Credits 3,178,671 1,915,492 635,055 Total Contingent Liabilities 42,260,474 42,645,036 33,265,030 Commitments Loan commitments drawable by third parties (1) 122,652,229 106,913,219 91,251,198 Total Commitments 122,652,229 106,913,219 91,251,198 Total 164,912,704 149,558,255 124,516,228 (1) Includes the approved limits and unused overdraft, credit card and others. Financial guarantees are provided to Bank´s clients in respect of their obligations to third parties. The Bank has the right to seek reimbursement from the clients for any amount it shall have to pay under such guarantee. Additionally, the Bank may hold cash or other highly liquid collateral for these guarantees. These guarantees are subject to the same credit evaluation performed on the origination of loans. The Bank´s expectation is that many of these guarantees to expire without the need of cash disbursement in advance. Therefore, in the ordinary course of business, the Bank expects that these guarantees will have virtually no impact on its liquidity. Performance guarantees are issued to guaranteed clients obligations such as to make contractually specified investments, to supply specified products, commodities, or maintenance or warranty services to a third party, completion of projects in accordance with contract terms, etc. Financial standby letters of credit include guarantees of payment of loans, credit facilities, promissory notes and trade acceptances. The Bank always requires collateral to grant this kind of financial guarantees. In Documentary Credits, the Bank acts as a payment intermediary between trading companies located in different countries (import-export transactions). Under a documentary credit transaction, the parties involved deal with the documents rather than the commodities to which the documents may relate. Usually the traded commodities are used as collateral to the transaction and the Bank may provide some credit facilities. Loan commitments draw able by third parties include mostly credit card lines and commercial commitments. Credit card lines are unconditionally cancelable by the issuer. Commercial commitments are mostly 1 year facilities subject to information requirements to be provided by Banks´s clients. The risk criteria followed to issue all kinds of guarantees, financial standby letters of credit, documentary credits and any risks of signature are in general the same as those used for other products of credit risk, and therefore subject to the same admission and monitoring standards. The guarantees granted on behalf of Bank´s clients are subject to the same credit quality review process as any other risk product. On a regular basis, at least once a year, the solvency of the mentioned clients is checked as well as the probability of those guarantees to be executed. In case that any doubt on the client's solvency may arise we create allowances with charge to net income, by the amount of the inherent losses even if there is no claim to us. The provision for losses on the non-recovery guarantees and other securities (Note 9.c) is recorded as "Impairment losses on financial assets (net)” on consolidated income statement and its calculation is described in note 2.i. Additionally, the liability recognized as deferred revenue for the premium received for providing the above guarantees, which is being amortized into income over the life of the related guarantees is R$330,018 (2017 - R$446,143 and 2016- R$476,564). b) Off-balance funds under management Banco Santander has under its management investment funds for which it does not hold any substantial participation interests and does not act as principal over the funds, and it does not own any shares of such funds. Based on the contractual relationship governing the management of such funds, third parties who hold the participation interests in such funds are those who are exposed to, or have rights, to variable returns and have the ability to affect those returns through power over the fund. Moreover, though Santander Brasil acts as fund manager, in analyzing the fund manager's remuneration regime, the remuneration regime is proportionate to the service rendered, and therefore does not create exposure of such importance to indicate that the fund manager is acting as the principal (Note 2.w). The funds managed by Banco Santander not recorded in the balance sheet are as follows: Thousand of reais 2018 2017 2016 Funds under management 1,896,689 1,747,623 1,533,620 Managed Funds 200,366,261 188,728,634 158,734,032 Total 202,262,950 190,476,257 160,267,652 c) Third-party securities held in custody On December 31, 2018, the Bank held in custody debt securities and equity instruments totaling R$34,040,742 (2017- R$40,459,429 and 2016 - R$27,772,714) entrusted to it by third parties. d) Residual maturity The breakdown, by maturity, of the balances of certain items in the consolidated balance sheets is as follows: 2018 Thousand of reais On Up to 3 to 1 to 3 to After 5 Total Assets: Cash and balances with the Brazilian Central Bank 31,323,554 392,791 - - - - 31,716,345 Debt instruments 27,402 51,255,820 25,903,428 13,186,253 26,367,903 58,692,609 175,433,415 Equity instruments 839,620 34,420 231,576 - - - 1,105,616 Loans and amounts due from credit institutions 57,528,022 8,449,138 844,658 12,739,730 11,371 34,082 79,607,001 Loans and advances to customers - 111,595,396 75,100,836 63,043,973 21,397,689 29,934,313 301,072,207 Derivatives - 13,815,791 1,240,161 1,114,446 1,074,875 1,118,173 18,363,446 Total 89,718,598 185,543,356 103,320,659 90,084,402 48,851,838 89,779,177 607,298,030 2018 Thousand of reais On Up to 3 to 1 to 3 to After 5 Total Liabilities: Financial liabilities at amortized cost: Deposits from credit institutions (1) 1,139 55,872,675 18,564,342 19,850,530 2,598,172 2,135,948 99,022,806 Customer deposits (1) 65,241,618 102,942,180 76,987,570 42,399,934 16,624,469 2,029 304,197,800 Marketable debt securities (1) - 11,104,594 26,741,036 22,479,019 5,854,091 8,447,492 74,626,232 Subordinated liabilities 9,885,607 - - - - - 9,885,607 Debt Instruments Eligible to Compose Capital - - - - - 9,779,944 9,779,944 Other financial liabilities 66,265 31,566,995 35,648 18,086,272 - 27,600 49,782,780 Financial liabilities held for trading: 206,423 7,639,956 8,863,577 32,195,605 604,593 1,428,838 50,938,992 Short positions 206,423 - 1,139,847 31,349,407 - - 32,695,677 Derivatives - 7,639,956 7,723,730 1,069,718 604,593 1,428,838 18,466,835 Total 75,401,052 209,126,400 131,192,173 167,430,485 25,681,325 21,821,851 649,396,673 Difference (assets less liabilities) 14,317,546 (22,963,864) (27,871,514) (45,150,478) 23,170,513 67,957,326 9,459,529 2017 Thousand of reais On Up to 3 to 1 to 3 to After 5 Total Assets: Cash and balances with the Brazilian Central Bank 20,642,321 13,482,432 - - - - 34,124,753 Debt instruments 609,220 1,887,278 21,978,394 31,669,850 19,379,308 45,731,067 121,255,117 Equity instruments 66,187 124,304 305,073 842,090 - 292,121 1,629,775 Loans and amounts due from credit institutions 38,137,344 15,235,629 182,721 10,382,061 18,166 1,253,981 65,209,902 Loans and advances to customers 31,065,824 70,301,530 61,286,539 63,375,203 17,796,364 28,594,697 272,420,157 Derivatives - 426,577 1,034,248 9,470,073 4,357,636 1,974,354 17,262,888 Total 90,520,896 101,457,750 84,786,975 115,739,277 41,551,474 77,846,220 511,902,592 Liabilities: Financial liabilities at amortized cost: Deposits from credit institutions (1) 394,396 21,636,392 44,696,680 6,797,838 2,717,941 3,131,438 79,374,685 Customer deposits (1) 64,512,105 103,511,031 48,339,761 42,494,421 17,176,009 8,814 276,042,141 Marketable debt securities (1) - 14,315,305 35,636,549 17,923,372 1,491,866 879,920 70,247,012 Subordinated liabilities - - 519,230 - - - 519,230 Debt Instruments Eligible to Compose Capital - 114,104 - - - 8,322,797 8,436,901 Other financial liabilities 11,710,943 30,985,465 1,537,689 26,638 - - 44,260,735 Financial liabilities held for trading: Short positions - - 466,000 8,960,806 7,476,079 15,905,507 32,808,392 Derivatives - 769,619 975,945 8,244,193 4,239,198 2,448,531 16,677,486 Total 76,617,444 171,331,916 132,171,854 84,447,268 33,101,093 30,697,007 528,366,582 Difference (assets less liabilities) 13,903,452 (69,874,166) (47,384,879) 31,292,009 8,450,381 47,149,213 (16,463,990) 2016 Thousand of reais On Up to 3 to 1 to 3 to After 5 Total Assets: Cash and balances with the Brazilian Central Bank 14,683,735 11,600,834 - - - - 26,284,569 Debt instruments - 21,709,350 10,136,133 26,674,215 28,135,295 30,838,274 117,493,267 Equity instruments 593,594 48,054 252,087 486,408 21,313 1,024,933 2,426,389 Loans and amounts due from credit institutions 39,961,892 14,450,530 923,308 532,399 34,458 9,808,414 65,711,001 Loans and advances to customer 30,408,851 68,218,474 60,047,442 54,558,381 17,357,244 21,412,382 252,002,774 Loans and Receivables - Debt instruments 822,874 1,287,372 2,960,099 5,044,803 4,472,758 1,695,353 16,283,259 Investments Held-to-Maturity - - 12,378 371,621 1,173,360 8,491,402 10,048,761 Derivatives 620,422 9,209,421 3,571,126 3,813,687 5,481,210 2,007,107 24,702,973 Total 87,091,368 126,524,035 77,902,573 91,481,514 56,675,638 75,277,865 514,952,993 Liabilities: Financial liabilities at amortized cost: Deposits from credit institutions (1) 770,467 40,581,025 23,315,006 8,215,378 2,818,095 2,934,101 78,634,072 Customer deposits (1) 60,919,032 64,154,475 68,505,808 39,630,274 14,003,821 231,767 247,445,177 Marketable debt securities (1) - 21,833,927 56,637,880 20,620,077 312,143 438,928 99,842,955 Subordinated liabilities - - - 466,246 - - 466,246 Debt Instruments Eligible to Compose Capital - 113,995 - - - 8,197,923 8,311,918 Other financial liabilities 3,004,041 33,559,710 356 7,992 - 307,000 36,879,099 Financial liabilities held for trading: Short positions - 743 2,887,723 8,333,584 3,344,083 17,128,136 31,694,269 Derivatives 333,287 8,052,349 2,506,131 2,523,506 5,376,180 1,445,162 20,236,615 Total 65,026,827 168,296,224 153,852,904 79,797,057 25,854,322 30,683,017 523,510,351 Difference (assets less liabilities) 22,064,541 (41,772,189) (75,950,331) 11,684,457 30,821,316 44,594,848 (8,557,358) (1) Includes obligations which may be subject to early payment, being: demand and time deposits, repurchase agreements with clients, LCI and LCA. e) Equivalent value in Reais of assets and liabilities The main foreign currency balances in the consolidated financial statements, based on the nature of the related items, are as follows: Equivalent Value in Thousand of Reais 2018 2017 2016 Assets Liabilities Assets Liabilities Assets Liabilities Cash and reserves at the Central Bank of Brazil 6,947,282 - 126,022 - 174,605 - Financial asset/liabilities for trading - - 626,101 2,982,336 402,186 371,100 Financial ssets/liabilities measured at fair value through profit or loss held for trading 1,211,296 101,833 - - - - Available-for-sale financial assets - - 11,665,952 - 9,787,622 - Financial assets measured at fair value through other comprehensive income 7,049,727 - - - - - Loans and receivables - - 18,703,454 - 28,061,831 - Financial assets/liabilities measured at amortized cost 17,912,203 35,567,194 - 36,306,000 - 39,465,409 Total 33,120,508 35,669,027 31,121,529 39,288,336 38,426,244 39,836,509 f) Other Obligations The Banco Santander rents properties, mainly used for branches, based on a standard contract which may be cancelled at its own criterion and includes the right to opt for renewals and adjustment clauses. The leases are classified as operating leases. The total of the future minimum payments of non-cancellable operating leases is shown below: 2018 2017 2016 Up to 1 Year 670.553 624.424 646.804 Between1 to 5 Years 1.435.970 1.545.101 1.789.670 More than 5 Years 167.868 288.420 496.802 2.274.391 2.457.945 2.933.276 Additionally, Banco Santander has contracts for a matures indeterminate, totaling R$674 (2017- R$934 and 2016 - R$1,013) monthly rent corresponding to the contracts with this feature. Payment of operating leases recognized as expenses in 2018 fiscal year were R$683,011 (2017- R$655,949 and 2016 - R$663,801). Monthly rental contracts will be adjusted on an annual basis, as per prevailing legislation, at Índice Geral de Preços do Mercado (IGPM) variation. The lessee is entitled to unilaterally rescind the agreement, at any time, as contractual clauses and legislation. g) Contingent assets On December 31, 2018, 2017 and 2016 no contingent assets were recorded. |
Business segment reporting
Business segment reporting | 12 Months Ended |
Dec. 31, 2018 | |
Business segment reporting [Abstract] | |
Business segment reporting | 45. Business segment reporting In accordance with IFRS 8, an operating segment is a component of an entity: (a) that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity), (b) whose operating results are regularly reviewed by the entity's Management responsible to make decisions about resources to be allocated to the segment and assess its performance, and (c) For which different financial information are available. Based on these guidelines, the Bank has identified the following reportable operating segments: • Commercial Banking, • Global Wholesale Banking, The Bank has two segments, the commercial (except for the Corporate Banking business managed globally using the Global Relationship Model) and the Global Wholesale Banking segment includes the Investment Banking and Markets operations, including departments cash and stock trades. The Bank operates in Brazil and abroad, through the Cayman branch, Luxembourg branch and its subsidiary in Spain, with Brazilian clients and therefore has no geographical segments. The income statements and other significant data are as follows: Thousand of reais 2018 (Condensed) Income Statement Commercial Banking Global Wholesale Banking Total NET INTEREST INCOME 39,390,512 2,530,830 41,921,342 Income from equity instruments 9,974 22,649 32,623 Income from companies accounted for by the equity method 65,958 - 65,958 Net fee and commission income 12,537,112 1,595,047 14,132,159 Gains (losses) on financial assets and liabilities (net) and Exchange differences (net) (1) (6,752,093) 1,162,820 (5,589,273) Other operating expense (net) (965,466) (90,384) (1,055,850) TOTAL INCOME 44,285,998 5,220,961 49,506,959 Personnel expenses (8,404,198) (801,809) (9,206,007) Other administrative expenses (7,186,035) (400,096) (7,586,131) Depreciation and amortization (1,637,484) (102,475) (1,739,959) Provisions (net) (1,947,578) (52,026) (1,999,604) Impairment losses on financial assets (net) (12,419,979) (293,456) (12,713,435) Impairment losses on non-financial assets (net) (450,201) (58,109) (508,310) Other non-financial gains (losses) 156,258 - 156,258 OPERATING PROFIT BEFORE TAX (1) 12,396,779 3,512,992 15,909,771 Foreign Exchange Hedge (1) 5,867,320 - 5,867,320 ADJUSTED OPERATING INCOME BEFORE TAX (1) 18,264,099 3,512,992 21,777,091 Thousand of reais 2017 (Condensed) Income Statement Commercial Banking Global Wholesale Banking Total NET INTEREST INCOME 32,392,239 2,554,250 34,946,489 Income from equity instruments 83,120 - 83,120 Income from companies accounted for by the equity method 71,551 - 71,551 Net fee and commission income 11,261,952 1,459,916 12,721,868 Gains (losses) on financial assets and liabilities (net) and Exchange differences (net) (1) (25,628) 1,599,774 1,574,146 Other operating expense (net) (640,522) (31,491) (672,013) TOTAL INCOME 43,142,712 5,582,449 48,725,161 Personnel expenses (8,166,562) (770,716) (8,937,278) Other administrative expenses (7,011,740) (171,577) (7,183,317) Depreciation and amortization (1,560,465) (101,782) (1,662,247) Provisions (net) (3,190,388) (118,851) (3,309,239) Impairment losses on financial assets (net) (11,232,902) (1,105,398) (12,338,300) Impairment losses on non-financial assets (net) (435,960) (20,751) (456,711) Other non-financial gains (losses) (324,385) - (324,385) OPERATING PROFIT BEFORE TAX (1) 11,220,310 3,293,374 14,513,684 Foreign Exchange Hedge (1) 809,694 - 809,694 ADJUSTED OPERATING INCOME BEFORE TAX (1) 12,030,004 3,293,374 15,323,378 Thousand of reais 2016 (Condensed) Income Statement Commercial Banking Global Wholesale Banking Total NET INTEREST INCOME 27,365,857 3,220,636 30,586,493 Income from equity instruments 258,545 - 258,545 Income from companies accounted for by the equity method 47,537 - 47,537 Net fee and commission income 9,580,332 1,397,264 10,977,596 Gains (losses) on financial assets and liabilities (net) and Exchange differences (net) (1) 5,619,356 1,971,614 7,590,970 Other operating expense (net) (611,051) (13,520) (624,571) TOTAL INCOME 42,260,576 6,575,994 48,836,570 Personnel expenses (7,638,124) (739,141) (8,377,265) Other administrative expenses (6,272,987) (270,158) (6,543,145) Depreciation and amortization (1,381,742) (100,897) (1,482,639) Provisions (net) (2,685,278) (39,464) (2,724,742) Impairment losses on financial assets (net) (11,607,468) (1,693,977) (13,301,445) Impairment losses on non-financial assets (net) (114,154) (167) (114,321) Other non-financial gains (losses) 90,889 - 90,889 OPERATING PROFIT BEFORE TAX (1) 12,651,712 3,732,190 16,383,902 Foreign Exchange Hedge (1) (6,717,250) - (6,717,250) ADJUSTED OPERATING INCOME BEFORE TAX (1) 5,934,462 3,732,190 9,666,652 (1) Includes, in the Commercial Bank, the currency hedge of the investment in dollars (a strategy to mitigate the tax effects and the variation of the exchange rate of offshore investments on net income), the result of which is recorded under " on financial assets and liabilities "fully offset in the line of Taxes. 2018 Other aggregates: Commercial Banking Global Wholesale Banking Total Total assets 646,128,672 77,736,335 723,865,007 Loans and advances to customers 236,792,060 64,280,147 301,072,207 Customer deposits 227,689,079 76,508,721 304,197,800 2017 Other aggregates: Commercial Banking Global Wholesale Banking Total Total assets 580,090,402 65,612,637 645,703,039 Loans and advances to customers 217,539,344 54,880,813 272,420,157 Customer deposits 225,926,433 50,115,708 276,042,141 2016 Other aggregates: Commercial Banking Global Wholesale Banking Total Total assets 557,624,385 76,768,855 634,393,240 Loans and advances to customers 191,433,209 60,569,565 252,002,774 Customer deposits 228,923,947 18,521,230 247,445,177 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related party transactions [Abstract] | |
Related party transactions | 46. Related party transactions The parties related to the Bank are deemed to include, in addition to its subsidiaries, associates and jointly controlled entities, the Bank's key management personnel and the entities over which the key management personnel may exercise significant influence or control. Banco Santander has the Policy on Related Party Transactions approved by the Board of Directors, which aim to ensure that all transactions are made on the policy typified in view the interests of Banco Santander and its stockholders'. The policy defines powers to approve certain transactions by the Board of Directors. The rules laid down are also applied to all employees and directors of Banco Santander and its subsidiaries. The transactions and remuneration of services with related parties are carried out in the ordinary course of business and under commutative conditions, including interest rates, terms and guarantees, and do not involve risks greater than normal collection or present other disadvantages. a) Key-person management compensation The Board of Directors' meeting, held on March 27, 2018 approved, in accordance with the Compensation Committee the maximum global compensation proposal for the directors (Board of Directors and Executive Officers) overall amounting to R$300,000 for the 2018 financial year, covering fixed remuneration, variable and equity-based and other benefits. The proposal was approved by the extraordinary stockholders' meeting (ESM) held on April 27, 2018. i) Long-term benefits The Banco Santander as well as Banco Santander Spain, as other subsidiaries of Santander Group, have long-term compensation programs tied to their share's performance, based on the achievement of goals. ii) Short-term benefits The following table shows the Board of Directors' and Executive Board's: Thousand of reais 2018 2017 2016 Fixed Compensation 90,580 83,633 90,169 Variable Compensation - in cash 48,526 42,718 37,479 Variable Compensation - in shares 34,155 34,567 31,802 Others (1) 54,494 11,919 14,580 Total Short-Term Benefits 227,755 172,837 174,030 Variable Compensation - in cash 31,797 31,268 25,581 Variable Compensation - in shares 30,060 34,455 75,069 Total Long-Term Benefits 61,857 65,723 100,650 Total (2) 289,612 238,560 274,680 (1) In the first half of 2018, the Management of Banco Santander decided to carry out an early initiative, which was practiced by the Bank's liberality. (2) Refers to the amount paid by Banco Santander and its subsidiaries to their Managers for positions they hold at Banco and other companies in the Conglomerate Santander. Additionally, in the exercise ended on December 31, 2018, withholding taxes were collected on management compensation in the amount of R$36,356 (2017 - R$30,713 and 2016 - R$30,312). iii) Contract termination The termination of the employment relationship for non-fulfillment of obligations or voluntarily does not entitle executives to any financial compensation. b) Lending operations Under current law, it is not granted loans or advances involving: I - directors, members of board of directors and audit committee as well as their spouses and relatives up to the second degree; II - individuals or legal entities of Banco Santander, which hold more than 10% of the share capital; III - Legal entities which hold more than 10% of the share capital, Banco Santander and its subsidiaries; and IV - legal entities in which any of the officers, members of the Board of Directors and Audit Committee, as well as their spouses or relatives up to the second degree, hold more than 10% of the share capital. c) Ownership Interest The table below shows the direct interest (common shares and preferred shares) as of December 31, 2018, 2017 and 2016: 2018 Common Preferred Total Shares Common Shares Preferred Shares Total Stockholders' (thousand) Shares (%) (thousand) Shares (%) (thousand) Shares (%) Grupo Empresarial Santander, S.L. (1) 1,107,673 29.0% 1,019,645 27.7% 2,127,318 28.4% Sterrebeeck B.V. (1) 1,809,583 47.4% 1,733,644 47.1% 3,543,227 47.2% Banco Santander, S.A. (1) 521,964 13.7% 519,268 14.1% 1,041,232 13.9% Employees 2,986 0.1% 2,987 0.1% 5,973 0.1% Directors (*) 3,930 0.1% 3,930 0.1% 7,860 0.1% Other 359,242 9.4% 387,045 10.5% 746,287 9.9% Total 3,805,378 99.7% 3,666,519 99.6% 7,471,897 99.6% Treasury shares 13,317 0.3% 13,317 0.4% 26,634 0.4% Total 3,818,695 100.0% 3,679,836 100.0% 7,498,531 100.0% Free Float (2) 362,228 9.5% 390,032 10.6% 752,260 10.0% 2017 Common Preferred Total Shares Common Shares Preferred Shares Total Stockholders' (thousand) Shares (%) (thousand) Shares (%) (thousand) Shares (%) Grupo Empresarial Santander, S.L. (1) 1,107,673 29.0% 1,019,645 27.7% 2,127,318 28.4% Sterrebeeck B.V. (1) 1,809,583 47.4% 1,733,644 47.1% 3,543,227 47.2% Banco Santander, S.A. (1) 521,964 13.6% 519,268 14.1% 1,041,232 13.9% Employees 3,551 0.1% 3,556 0.1% 7,107 0.1% Directors (*) 4,016 0.1% 4,016 0.1% 8,032 0.1% Other 366,063 9.6% 393,862 10.7% 759,925 10.1% Total 3,812,850 99.8% 3,673,991 99.8% 7,486,841 99.8% Treasury shares 5,845 0.2% 5,845 0.2% 11,690 0.2% Total 3,818,695 100.0% 3,679,836 100.0% 7,498,531 100.0% Free Float (2) 369,614 9.7% 397,418 10.8% 767,032 10.2% 2016 Common Preferred Total Shares Common Shares Preferred Shares Total Stockholders' (thousand) Shares (%) (thousand) Shares (%) (thousand) Shares (%) Grupo Empresarial Santander, S.L. (1) 1,107,673 28.8% 1,019,645 27.5% 2,127,318 28.1% Sterrebeeck B.V. (1) 1,809,583 47.0% 1,733,644 46.7% 3,543,227 46.9% Banco Santander, S.A. (1) 521,965 13.6% 519,268 14.0% 1,041,233 13.8% Qatar Holding, LLC 207,812 5.4% 207,812 5.6% 415,624 5.5% Employees 3,914 0.1% 3,929 0.1% 7,843 0.1% Members of the Board of Directors (*) (*) (*) (*) (*) (*) Members of the Executive Board (*) (*) (*) (*) (*) (*) Other 174,238 4.5% 202,028 5.5% 376,266 5.0% Total 3,825,185 99.4% 3,686,326 99.4% 7,511,511 99.4% Treasury shares 25,786 0.6% 25,786 0.6% 51,572 0.6% Total 3,850,971 100.0% 3,712,112 100.0% 7,563,083 100.0% Free Float (2) 385,964 10.0% 413,769 11.1% 799,733 10.6% (1) Companies of the Santander Spain Group. (2) Composed by Employees, Qatar Holding and other. (*) None of the members of the Board of Directors and the Executive Board holds 1.0% or more of any class of shares. c.1) Qatar Holding LLC's Public Offering On April 11, 2017, Banco Santander in Brazil informed its shareholders and the market in general, in furtherance of the material facts disclosed on March 28, 2017 and April 6, 2017, the settlement of the secondary public offering for the distribution of 80,000,000 units issued by Banco Santander in Brazil and held by Qatar Holding LLC (Selling Shareholder), including in the form of American Depositary Shares (ADSs), having been allocated 22,000,000 Units for the Brazilian offering and 58,000,000 ADSs for the international offering. The price per Unit was set at R$25, resulting on a total amount of R$2 billion. Additionally, the amount of Units of the international offering initially offered was increased by an additional batch of 12,000,000 Units, exclusively in the form of ADSs also held by the Selling Shareholder. d) Related-Party Transactions Santander has a Policy for Related Party Transactions approved by the Board of Directors, which aims to ensure that all transactions typified by the policy to take effect in view of the interests of Banco Santander and its stockholders. The policy defines the power to approve certain transactions by the Board of Directors. The planned rules also apply to all employees and officers of Banco Santander and its subsidiaries. Operations and charges for services with related parties are carried out in the ordinary course of business and under reciprocal conditions, including interest rates, terms and guarantees, and do not entail greater risk than the normal collection or have other disadvantages. Beginning in 2018, transactions and balances with key management personnel are shown. The main transactions and balance are as follows: Thousand of reais 2018 Parent (1) Joint-controlled Other Related-Party (2) Assets 8,169,537 3,112,734 1,381,770 Financial assets for trading (72,815) 205,337 266,027 Banco Santander, S.A. - Spain (72,815) - - Abbey National Treasury Services Plc (2) - - - Real Fundo de Investimento Multimercado Santillana Credito Privado (2) - - 266,027 Banco RCI Brasil S.A. - 205,337 - Loans and other values with credit institutions - Cash and overnight operations in foreign currency 8,194,590 - 146,988 Banco Santander, S.A. - Spain (3) (5) 8,194,590 - - Banco Santander Totta, S.A. (2) - - 7,883 Abbey National Treasury Services Plc (2) - - 87,260 Bank Zachodni (2) - - 193 Santander UK plc - - 46,615 Banco Santander, S.A. - Mexico (2) - - 5,037 Loans and advances to customers 347 - 966,462 Zurich Santander Brasil Seguros e Previdência S.A. - - 913,875 Zurich Santander Brasil Seguros S.A. - - 45,851 Abbey National Treasury Services Plc (2) - - - Banco Santander Espanha (1) 347 - - Isban Mexico, S.A. de C.V. - - 122 Ingeniería de Software Bancario, S.L. - - - Gesban Servicios Administrativos Globales, S.L. - - 23 Santander Brasil Gestão de Recursos Ltda - - 169 Santander Securities Services Brasil Participações S.A. (2) - - 927 Key Management Personnel (8) - - 5,495 Loans and other values with credit institutions (1) 15,143 2,905,947 2,293 Banco Santander - Spain 15,143 - - Produban Servicios Informáticos Generales, S.L. (Produban Espanha) (2) - - - Banco RCI Brasil S.A. - 2,905,947 - BHJV Assessoria e Consultoria em Gestão Empresarial LTDA - - 10 Produban Brasil Tecnologia - - 2,091 Santander Global Technology, S.L., SOCI - - 192 Banco Santander, S.A. - Uruguay (2) - - - Other Assets 32,272 1,450 - Banco Santander - Spain 32,272 - - Banco RCI Brasil S.A. - 1,450 - Liabilities (23,166,005) (38,380) (2,975,342) Deposits of Brazil Central Bank and deposits of credit institutions (107,084) (36,871) (1,410,619) Banco Santander, S.A. - Spain (4) (107,084) - - Santander Securities Services Brasil DTVM S.A. - - - Santander Brasil Asset (2) - - - Real Fundo de Investimento Multimercado Santillana Credito Privado (2) - - (1,151,399) Banco Santander, S.A. - Uruguay (2) - - - Banco Santander Río S.A. (2) - - (259,220) Banco RCI Brasil S.A. - (36,871) - Securities - - (96,133) Key Management Personnel - - (96,133) Customer deposits - (1,509) (1,134,675) Santander Securities Services Brasil Participações S.A. (2) - - (58,968) Zurich Santander Brasil Seguros e Previdência S.A. (1) - - (234,249) Gestora de Inteligência de Crédito - - (190,674) Santander Brasil Gestão de Recursos Ltda - - (126,988) Webmotors S.A. - (1,509) - Santander Securities Services Brasil DTVM S.A. - - (427,209) Santander Brasil Asset (2) - - (18,639) Key Management Personnel - - (37,889) Others - - (40,059) Other financial liabilities - Dividends and interest on capital Payable (3,922,473) - (5,544) Banco Santander - Spain (609,159) - - Grupo Empresarial Santander, S.L. (1) (1,242,259) - - Sterrebeeck B.V. (1) (2,071,055) - - Banco Madesant - - (1,112) Key Management Personnel (7) - - (4,432) Other Payables (9,603) - (424,504) Banco Santander, S.A. - Spain (9,603) - - Santander Brasil Asset (2) - - (14,476) Produban Servicios Informáticos Generales, S.L. (Produban Espanha) (2) - - - Ingeniería de Software Bancário, S.L. (2) - - - Santander Securities Services Brasil DTVM S.A. - - (4,291) Zurich Santander Brasil Seguros e Previdência S.A. - - (16,924) Key Management Personnel - - (381,292) Others - - (7,521) Debt Instruments Eligible to Compose Capital (19,126,845) - - Banco Santander - Spain (19,126,845) - - Thousand of Reais 2017 Parent (1) Joint-controlled Other Related-Party (2) Assets 8,214,739 1,214,312 926,994 Financial assets for trading - Derivatives net (173,065) - (74,873) Banco Santander, S.A. - Spain (173,065) - - Abbey National Treasury Services Plc (2) - - (71,672) Real Fundo de Investimento Multimercado Santillana Credito Privado (2) - - (3,201) Loans and other values with credit institutions - Cash and overnight operations in foreign currency 8,363,038 - 76,009 Banco Santander, S.A. - Spain (3) (5) 8,363,038 - - Banco Santander Totta, S.A. (2) - - 2,733 Abbey National Treasury Services Plc (2) - - 71,751 Bank Zachodni (2) - - 177 Banco Santander, S.A. - Mexico (2) - - 1,348 Loans and advances to customers 132 9,661 925,858 Zurich Santander Brasil Seguros e Previdência S.A. - - 925,835 Abbey National Treasury Services Plc (2) - - 23 Banco Santander Espanha (1) 132 - - Webmotors S.A. - 9,661 - Loans and other values with credit institutions (1) 23,896 1,203,032 - Banco Santander - Spain 23,896 - - Banco RCI Brasil S.A. - 1,203,032 - Other Assets 738 1,619 - Banco Santander - Spain 738 - - Banco RCI Brasil S.A. - 1,619 - Liabilities (12,360,383) (57,221) - (2,107,677) Deposits of Brazil Central Bank and deposits of credit institutions (387,937) (47,423) (1,862,058) Banco Santander, S.A. - Spain (4) (387,937) - - Santander Securities Services Brasil DTVM S.A. - - (300,074) Santander Brasil Asset - - (16,766) Real Fundo de Investimento Multimercado Santillana Credito Privado (2) - - (1,543,752) Banco Santander, S.A. - Uruguay (2) - - (1,466) Banco RCI Brasil S.A. - (47,423) - Customer deposits - (9,798) (222,473) ISBAN Brasil S.A. (2) - - (20,893) Santander Securities Services Brasil Participações S.A. (2) - - (71,947) Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) (2) - - (34,410) Zurich Santander Brasil Seguros e Previdência S.A. - - (55,935) Santander Brasil Gestão de Recursos Ltda - - (32,334) Webmotors S.A. - (9,798) - Others - - (6,954) Other financial liabilities - Dividends and interest on capital Payable (3,992,820) - (1,132) Banco Santander - Spain (620,264) - - Grupo Empresarial Santander, S.L. (1)(2) (1,264,470) - - Sterrebeeck B.V. (1) (2) (2,108,086) - - Banco Madesant (2) - - (1,132) Other Payables (2,050) - (22,014) Banco Santander - Spain (2,050) - - Santander Brasil Asset - - (69) ISBAN Brasil S.A. (2) - - 237 Produban Servicios Informáticos Generales, S.L. (Produban Espanha) (2) - - (905) Santander Securities Services Brasil DTVM S.A. - - 6,762 Zurich Santander Brasil Seguros e Previdência S.A. - - (27,748) Others - - (291) Debt Instruments Eligible to Compose Capital (7,977,576) - - Banco Santander - Spain (7,977,576) - - Thousand of Reais 2016 Parent (1) Joint-controlled Other Related-Party (2) Assets 10,919,116 794,800 556,778 Financial assets for trading - Derivatives net (184,304) - (400,570) Banco Santander, S.A. - Spain (184,304) - - Abbey National Treasury Services Plc (2) - - (91,828) Real Fundo de Investimento Multimercado Santillana Credito Privado (2) - - (308,742) Loans and other values with credit institutions - Cash and overnight operations in foreign currency 10,900,941 - 94,530 Banco Santander, S.A. - Spain (3) (5) 10,900,941 - - Banco Santander Totta, S.A. (2) - - 1,261 Abbey National Treasury Services Plc (2) - - 92,118 Bank Zachodni (2) - - 117 Banco Santander, S.A. - México (2) - - 1,034 Loans and advances to customers - 136,354 862,818 Zurich Santander Brasil Seguros e Previdência S.A. - - 862,553 Webmotors S.A. - 136,354 - Santander Brasil Gestão de Recursos Ltda - - 265 Loans and other values with credit institutions (1) 25,546 656,806 - Banco Santander - Spain 25,546 - - Banco RCI Brasil S.A. - 656,806 - Other Assets 176,933 1,640 - Banco Santander - Spain 176,933 - - Banco RCI Brasil S.A. - 1,640 - Liabilities (11,984,199) (106,527) (1,222,556) Deposits of Brazil Central Bank and deposits of credit institutions (327,466) (40,202) (980,702) Banco Santander Espanha (4) (327,466) - - Santander Securities Services Brasil DTVM S.A. - - (208,059) Santander Brasil Asset - - (12,079) Real Fundo de Investimento Multimercado Santillana Credito Privado (2) - - (757,874) Banco Santander, S.A. - Uruguay (2) - - (2,158) Banco RCI Brasil S.A. - (40,202) - Others - - (532) Customer deposits - (66,325) (189,794) ISBAN Brasil S.A. (2) - - (22,232) Santander Securities Services Brasil Participações S.A. (2) - - (52,484) Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) (2) - - (19,653) Zurich Santander Brasil Seguros e Previdência S.A. - - (44,840) Santander Brasil Gestão de Recursos Ltda - - (39,361) Webmotors S.A. - (66,325) - Others - - (11,224) Other financial liabilities - Dividends and interest on capital Payable (3,794,130) - (16,494) Banco Santander, S.A. - Spain (589,227) - - Grupo Empresarial Santander, S.L. (1) (2) (1,201,612) - - Sterrebeeck B.V. (1) (2) (2,003,291) - - Banco Madesant (2) - - (1,075) Santusa Holding, S.L. (2) - - (15,419) Other Payables (2,954) - (35,566) Banco Santander - Espanha (2,954) - - Santander Brasil Asset - - (70) ISBAN Brasil S.A. (2) - - (339) Santander Securities Services Brasil DTVM S.A. - - (4,430) Zurich Santander Brasil Seguros e Previdência S.A. - - (30,684) Outros - - (43) Debt Instruments Eligible to Compose Capital (7,859,649) - - Banco Santander - Spain (7,859,649) - - (*) All loans and other amounts with related parties were made in the ordinary course of business and on sustainable basis, including interest rates and collateral and did not involve more than the normal risk of collectability or present other unfavorable features. (1) Banco Santander (Brasil) S.A. is indirectly controlled by Banco Santander Spain (note 1-a), through its subsidiary Grupo Empresarial Santander, S.L. and Sterrebeeck B.V. (2) Refers to the Company's subsidiaries (Banco Santander Spain). (3) In December 31, 2018, refers to the cash of R$1,515,437 (2017 - R$587,531 and 2016 - R$582,571). (4) On December 31, 2018, include foreign currency investments (overnight applications) due on January 2, 2019 in the amount of R$6,583,716 (2017 - R$7,384,335 and 2016 - R$10,269,812) and interest of 2.38% p.a held at Santander Brasil EFC, Banco Santander Brasil and its Grand Cayman Branch. (5) Refers the emissions of Eurobonds of Grand Cayman Branch, maturing between from January 16, 2016 to February 13, 2017 and interest of 3.152% p.a and 4.625% p.a. (6) In February, 2016 the Cia de Crédito, Financiamento e Investimentos Renault was acquired by Banco RCI Brasil. (7) Of the total dividends resolved in 2018, R$ 10,502 is allocated to the Key Management Personnel, remaining to pay the provisioned amount. (8) The balance with key management personnel refers to operations contracted before the term of the mandates. Thousand of Reais 2018 Parent (1) Joint-controlled Other Related-Party (2) Income (972,799) 192,889 1,323,622 Interest and similar income - Loans and advances to customers - - 461 Key Management Personnel - - 461 Interest and similar income - Loans and amounts due from credit institutions 136,250 136,666 1,080 Banco Santander, S.A. - Spain 136,250 - - Banco RCI Brasil S.A. (6) - 136,666 - Abbey National Treasury Services Plc - - 157 Cibrasec - - 923 Interest expense and similar charges - Customer deposits - (92) (23,146) ISBAN Brasil S.A. - - (90) Santander Brasil Gestão de Recursos Ltda - - (8,329) Santander Cultural - - (36) Gestora de Inteligência de Crédito - - (5,743) Webmotors S.A. - (92) - Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) - - (215) Key Management Personnel - - (8,707) Others - - (27) Interest expense and similar charges - Deposits from credit institutions (6,889) (5,871) (134,896) Banco Santander, S.A. - Spain (6,889) - - Banco RCI Brasil S.A. (6) - (5,871) - Santander Securities Services Brasil Participações S.A. (2) - - (26,378) SAM Brasil Participações - - (47) Real Fundo de Investimento Multimercado Santillana Credito Privado - - (102,928) Santander Securities Services Brasil DTVM S.A. (2) - - (4,442) Santander Asset Management, S.A. SGIIC. - - (1,101) Fee and commission income (expense) 6,213 32,960 2,653,014 Banco Santander, S.A. - Spain 6,213 - - Banco RCI Brasil S.A. (6) - 31,981 - Banco Santander International - - 30,789 Webmotors S.A. - 979 - Zurich Santander Brasil Seguros S.A. - - 300,868 Zurich Santander Brasil Seguros e Previdência S.A. - - 2,302,295 Key Management Personnel - - 355 Others - - 18,707 Gains (losses) on financial assets and liabilities (net) and exchange differences (net) (680,903) 29,226 (199,985) Banco Santander, S.A. - Spain (680,903) - - Real Fundo de Investimento Multimercado Santillana Credito Privado - - (210,324) Abbey National Treasury Services Plc - - (17,726) Santander Securities Services Brasil DTVM S.A. (2) - - 1,312 Zurich Santander Brasil Seguros e Previdência S.A. - - 40,305 Zurich Santander Brasil Seguros S.A. - - - Banco RCI Brasil S.A. (6) - 29,226 - Key Management Personnel - - 239 Others - - (13,791) Administrative expenses and Amortization - - (952,432) Banco Santander, S.A. - Spain - - - ISBAN Brasil S.A. - - (14,210) Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) - - (33,567) ISBAN Chile S.A. - - (24) Aquanima Brasil Ltda. - - (30,021) TECBAN - Tecnologia Bancaria Brasil - - (313,433) Produban Servicios Informaticos Generales, S.L. - - - Ingeniería de Software Bancario, S.L. - - - Santander Securities Services Brasil DTVM S.A. (2) - - (46,884) Santander Global Technology, S.L., SOCI - - (175,466) Key Management Personnel - - (289,612) Others - - (49,216) Others Administrative expenses - Donation - - (20,013) Santander Cultural - - (2,748) Fundacao Santander - - (1,330) Instituto Escola Brasil - - - Fundação Sudameris - - (15,935) Debt Instruments Eligible to Compose Capital (427,470) - - Banco Santander Espanha (2)(8) (427,470) - - Thousand of Reais 2017 Parent (1) Joint-controlled Other Related-Party (2) Income 389,663 126,781 1,210,444 Interest and similar income - Loans and amounts due from credit institutions 87,217 87,381 1,417 Banco Santander, S.A. - Spain 87,217 - - Banco RCI Brasil S.A. (6) - 87,381 - Abbey National Treasury Services Plc - - 879 Cibrasec - - 538 Interest expense and similar charges - Customer deposits - (4,486) (41,026) ISBAN Brasil S.A. - - (2,145) Banco Santander, S.A. - Spain - - (6,190) Santander Brasil Gestão de Recursos Ltda - - (6,636) Santander Cultural - - (24,344) Real Fundo de Investimento Multimercado Santillana Credito Privado - - (69) Webmotors S.A. - (4,486) - Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) - - (1,547) Others - - (95) Interest expense and similar charges - Deposits from credit institutions (13,038) (3,026) (113,569) Banco Santander, S.A. - Spain (13,038) - - Banco RCI Brasil S.A. (6) - (3,026) - Santander Securities Services Brasil DTVM S.A. - - (95) SAM Brasil Participações - - (112,211) Real Fundo de Investimento Multimercado Santillana Credito Privado - - (1,263) Fee and commission income (expense) (5,099) 14,999 2,453,179 Banco Santander - Espanha (5,099) - - Banco RCI Brasil S.A. (6) - 14,996 - Banco Santander International - - 20,480 Webmotors S.A. - 3 - Zurich Santander Brasil Seguros S.A. - - 295,508 Zurich Santander Brasil Seguros e Previdência S.A. - - 2,134,755 Others - - 2,436 Gains (losses) on financial assets and liabilities (net) and exchange differences (net) 592,919 31,913 (39,534) Banco Santander, S.A. - Spain 592,919 - - Real Fundo de Investimento Multimercado Santillana Credito Privado - - (79,480) Abbey National Treasury Services Plc - - 23,843 Banco RCI Brasil S.A. (6) - 31,913 - Santander Securities Services Brasil DTVM S.A. (2) - - (26,102) Santander Investment Securities Inc. - - (13,492) Zurich Santander Brasil Seguros e Previdência S.A. - - 52,981 Zurich Santander Brasil Seguros S.A. - - 1,788 Others - - 928 Administrative expenses and Amortization (50,271) - (1,028,750) Banco Santander, S.A. - Espanha (50,271) - - ISBAN Brasil S.A. - - (337,161) Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) - - (242,191) ISBAN Chile S.A. - - (23) Aquanima Brasil Ltda. - - (25,638) TECBAN - Tecnologia Bancaria Brasil - - (262,046) Produban Servicios Informaticos Generales, S.L. - - (46,494) Ingeniería de Software Bancario, S.L. - - (70,385) Santander Securities Services Brasil DTVM S.A. (2) - - (42,603) Outros - - (2,209) Others Administrative expenses - Donation - - (21,273) Santander Cultural - - (3,513) Fundacao Santander - - (1,837) Instituto Escola Brasil - - (873) Fundação Sudameris - - (15,050) Debt Instruments Eligible to Compose Capital (222,065) - - Banco Santander Espanha (2)(8) (222,065) - - Thousand of Reais 2016 Parent (1) Joint-controlled Other Related-Party (2) Income (798,022) 136,111 1,197,489 Interest and similar income - Loans and amounts due from credit institutions 39,677 114,909 396 Banco Santander, S.A. - Spain 39,677 - - Banco RCI Brasil S.A. (6) - 114,909 - Abbey National Treasury Services Plc - - 396 Interest expense and similar charges - Customer deposits (4,192) (26,996) (49,420) ISBAN Brasil S.A. - - (3,560) Banco Santander Espanha (4,192) - - Santander Brasil Gestão de Recursos Ltda - - (12,417) Santander Cultural - - (11) Real Fundo de Investimento Multimercado Santillana Credito Privado - - (31,097) Webmotors S.A. - (26,996) - Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) - - (2,117) Others - - (218) Interest expense and similar charges - Deposits from credit institutions (512) (10,959) (115,458) Banco Santander, S.A. - Spain (512) - - Banco RCI Brasil S.A. (6) - (10,959) - Santander Securities Services Brasil DTVM S.A. - - (20,979) SAM Brasil Participações - - (133) Real Fundo de Investimento Multimercado Santillana Credito Privado - - (88,467) Santander Securities Services Brasil Participações S.A. (2) - - (4,119) Santander Asset Management, S.A. SGIIC. - - (1,760) Fee and commission income (expense) 5,334 20,133 1,955,255 Banco Santander - Espanha 5,334 - - Banco RCI Brasil S.A. (6) - 19,211 - Banco Santander International - - 20,959 Santander Securities Services Brasil DTVM S.A. - - 1,896 Webmotors S.A. - 922 - Zurich Santander Brasil Seguros S.A. - - 218,773 Zurich Santander Brasil Seguros e Previdência S.A. - - 1,711,138 Others - - 2,489 Gains (losses) on financial assets and liabilities (net) and exchange differences (net) (613,168) 39,024 267,983 Banco Santander, S.A. - Spain (613,168) - - Real Fundo de Investimento Multimercado Santillana Credito Privado - - 257,475 Abbey National Treasury Services Plc - - 38,274 Banco RCI Brasil S.A. (6) - 39,024 - Santander Securities Services Brasil DTVM S.A. - - (16,038) Santander Investment Securities Inc. - - (15,115) Others - - 3,387 Administrative expenses and Amortization - - (840,739) ISBAN Brasil S.A. - - (290,430) Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) - - (209,253) ISBAN Chile S.A. - - (26) Aquanima Brasil Ltda. - - (24,557) TECBAN - Tecnologia Bancaria Brasil - - (213,194) Produban Servicios Informaticos Generales, S.L. - - (21,525) Ingeniería de Software Bancario, S.L. - - (42,519) Santander Securities Services Brasil DTVM S.A. - - (35,882) Others - - (3,353) Others Administrative expenses - Donation - - (20,528) Santander Cultural - - (2,737) Fundacao Santander - - (3,452) Instituto Escola Brasil - - (939) Fundação Sudameris - - (13,400) Debt Instruments Eligible to Compose Capital (225,161) - - Banco Santander, S.A. - Spain (2) (225,161) - - (1) Banco Santander (Brasil) S.A. is indirectly controlled by Banco Santander Spain, through its subsidiary Grupo Empresarial Santander, S.L. and Sterrebeeck B.V. (2) Refers to the Company's subsidiaries (Banco Santander, S.A .- Spain). (3) Refers the profit on disposal of the company MS Participações. (4) Refers the profit on disposal of the company Santander Brasil Asset Management. (5) Refers the profit on disposal of the company Santander Securities Services Brasil DTVM S.A. (6) In February, 2016 the Cia de Crédito, Financiamento e Investimentos Renault was acquired by Banco RCI Brasil. |
Risk management
Risk management | 12 Months Ended |
Dec. 31, 2018 | |
Risk management [Abstract] | |
Risk management | 47. Risk management Risk management at Banco Santander is based on the following principles: A. Independence of the management activities related to the business; B. Involvement of the Senior Management in decision-making; C. Consensus in the decision making on credit operations between the Risk and Business departments; D. Collegiate decision-making, which includes the branch network, aiming to encourage diversity of opinions and avoiding the attribution of individual decisions; E. The use of statistical tools to estimate default, which includes internal rating, credit scoring and behavior scoring, RORAC (Return on Risk Adjusted Capital), VaR (Value at Risk), economic capital, scenario assessment, among others; F. Global approach, which an integrated treatment of risk factors in the business departments and the concept of economic capital as a consistent metric for risk undertaken and for business management; G. Common management tools H. Organizational structure I. Scopes and responsibilities J. Risk limitation K. Recognition L. Effective information channel M. Maintenance of a medium-low risk profile, and low volatility by: • The portfolio diversification, limiting concentration in clients, groups, sectors, products or geographically speaking; the complexity level of market operations reduction; the analysis of social and environmental risks of businesses and projects financed by the bank; continuous follow up to prevent the portfolios from deteriorating. • Policies and procedures definition that are part of the Regulatory Framework Risk, which regulates the risk activities and processes. They follow the instructions of the Board of Directors, the regulations of the BACEN and the international best practices in order to protect the capital and ensure business' profitability. At Banco Santander, the risk management and control process is structured using as reference the framework defined at corporate level and described according to the following phases: I. Adaptation of corporate management frameworks and policies that reflect Banco Santander's risk management principles. Within this regulatory framework, the Corporate Risk Management Framework, regulates the principles and standards governing Banco Santander´s risk activities, based on the corporate organization and a management models, meeting the necessary regulatory requirements for credit management. The organizational model comprises the management map, which defines the risk function and governance, and the regulatory framework itself. II. Identification of risks through the constant review and monitoring of exposures, the assessment of new products, businesses and deals (singular transactions); III. Risks measurement using methods and models periodically tested. IV. Preparation and distribution of a complete set of reports that are reviewed daily by the heads at all levels of Banco Santander management. V. Implementation of a risk control system which checks, on a daily basis, the degree to which the Bank´s risk profile matches the risk policies approved and the risk limits set. The most noteworthy corporate tools and techniques (aforementioned) already in use at Banco Santander are in different stages of maturity regarding the level of implementation and use in the Bank. For wholesale segment, these techniques are in line with the corporate level development. For local segments, internal ratings and scorings based models, VaR and market risk scenario analysis and stress testing were already embedded in risk management routine while Expected loss, Economic Capital and RORAC have been integrated in risk management. VI. Internal ratings- and scorings-based models which, by assessing the various qualitative and quantitative risk components by client and transaction, making it possible to estimate, firstly, the probability of default and, subsequently, the expected loss, based on Loss Given Default (LGD) estimates. VII. Economic capital, as a homogeneous measurement of the assumed risk and the basis for the measurement of the performance management. VIII. RORAC, used both as a transaction pricing tool in the whole sale segment (more precisely in global ranking and markets - bottom-up approach) as for in the analysis of portfolios and units (top-down approach). IX. VaR, which is used for controlling and setting the market risk limits for the various treasury portfolios. X. Scenario analysis and stress testing to supplement the analysis market and credit risk in order to assess the impact of alternative scenarios, even over provisions and capital. a) Corporate Governance of the Risk Function The structure of Banco Santander's Risk Committee is defined in accordance with the highest standards of prudent management, while respecting local legal and regulatory environment. Its main responsibilities are: A. Integrate and adapt the Bank's risk to local level, further than the risk management strategy, tolerance level and predisposition to the risk, previously approved by the executive committee and board of directors, all matched with corporate standards of Banco Santander Spain; B. Approve the proposals, operations and limits of clients and portfolio; C. Regularly monitor all the risks inherent to the business, proving if your profile is adequate to what was established in the risk appetite. D. Authorize the use of management tools and local risk models and being aware of the result of their internal validation. E. Keeping updated, assessing and monitoring any observations and recommendations periodically formulated by the supervisory authorities regarding their functions. The organizational structure of the executive vice-presidency consists of areas which are responsible for credit risk management, market and structural, operational and risk model. The credit risk management structure is composed by directors who act from the point of view of retail and wholesale portfolios management. A specific area has the mission to consolidate the portfolios and their respective risks, supporting the management with the integrated risk vision. In addition to this task, it is also responsible for the attendance to regulators, external and internal auditors, as well as the Group's headquarters in Spain. It has a department called risk architecture, which includes a set of transverse functions of all risk factors necessary for the construction of an advanced management model. Methodology (development, parameterization models that reach all areas of risk), Governance, Policy and Risk Culture, Capital, Stress Test and Risk MI (responsible for the generation, exploitation and dissemination of information beyond the project information systems) are areas part of this structure. Further details of the structure, methodologies and control system related to risk management is described in the report available on the website www.santander.com.br . b) Credit Risk b.1) Introduction to the treatment of credit risk The Credit Risk Management provides subsidies to define strategies as risk appetite, to establish limits, including exposure analysis and trends as well as the effectiveness of the credit policy. The goal is to maintain a risk profile and adequate minimum profitability to offset the estimated default, both client and portfolio, as defined by the Executive Committee and Board of Directors. Additionally, it is responsible for the risk management systems applied in the identification, measurement, control and reduction of exposure to risk in individual or clustered by similar operations. The Risk Management is specialized according to each clients' characteristics, being segregated between individual clients (with the accompanied of dedicated analysts) and customers with similar characteristics (standardized). • Individualized management: It is performed by a defined risk analyst, which prepares the analysis, and forwards it to the Risk Committee and monitors the client's progress. It covers the Wholesale segment clients (Corporate and GB&M), Retail (Companies 3 and Governments, Institutions and Universities); • Standardized management: Aimed at individuals and companies not classified as individualized clients. Based on automated models of decision-making and internal risk assessment, complemented by commercial heave and analysts specialized teams to handle exceptions. Macroeconomic aspects and market conditions, sectored and geographical concentration, as well as client profiling and economic prospects are also evaluated and considered in the appropriate measuring of credit risk. b.2) Measures and measurement tools Rating tools The Bank uses proprietary internal rating models to measure the credit quality of a given customer or transaction. Each rating relates to a certain probability of default or non-payment, determined on the basis of the customer's historical experience, to predict default. Rating/Scores models are used in the Bank's loan approval and risk monitoring process. The classification of loans into different categories is made according to the analysis of economic and financial situation of the client and any other registratered information updated frequently. New modes of operation are subject to credit risk evaluation, verification and adaptation to the controls adopted by the Bank. Ratings assigned to customers are reviewed periodically to include any new financial information available and the experience in the Banking relationship. The frequency of the reviews is increased in case of customers that reach certain levels in the automatic warning systems and of customers classified as requiring special monitoring. The own rating tools are reviewed to qualifications by them awarded are progressively enhanced. Credit risk parameters The estimative of the risk parameters Probability of Default (PD) and Loss Given Default (LGD) are based on internal experience, i.e. on default observations and on the experience in defaulted loan recoveries during a defined credit cycle. For low risk portfolios, such as banks, sovereign risk or global wholesale clients, the parameters are based on CDS market data and with global broadness, using Group Santander´s world presence. For the other portfolios, parameter estimative are based on the Bank's internal experience. In addition to the Probability of Default (PD), the Bank is managing its credit portfolio, seeking to make loans to borrowers that have higher volumes of guarantees associated with the operations and also works constantly on strengthening its credit recovery department. These and other actions combined, are responsible for ensuring the adequacy of LGD parameters (Loss Given Default, the loss resulting from the borrower's default event to honor the principal and/or interest payments). LGD calculation is based on net losses of non-performing loans, considering the guarantees associated with the transaction, revenues and expenses related to the recovery process and also the timing default. Besides that , the Loss identification period, or “LIP,” is also considered in the estimation of the risk parameters that is represented by the time period between the occurrence of a loss event and the identification of an objective evidence of this loss. In other words, it represents the time horizon from the credit loss occurrence until the effective confirmation of such loss. The Bank use proprietary internal rating models to measure the credit quality of a given client or transaction. Each rating relates to a certain probability of default or non-payment, determined on the basis of the client's history, with the exception of certain portfolios classified as “low default portfolios”. These ratings and models are used in loan approval and risk monitoring processes. The table shown in note 9.b shows the portfolio by the internal risk rating levels and their probability of default. Thousand of reais 2018 2017 2016 By maturity Less than 1 Year 186,373,511 174,247,968 161,664,232 Between 1 and 5 years 99,309,551 82,513,030 79,356,369 More than 5 years 36,250,128 31,068,215 27,416,955 Loans and advances to customers, gross 321,933,190 287,829,213 268,437,556 By internal classification of risk Low 240,440,294 226,098,497 207,889,639 Medium-low 50,485,682 33,635,378 32,104,168 Medium 11,967,262 10,423,293 10,940,879 Medium-High 7,722,198 8,215,024 6,976,969 High 11,317,754 9,457,021 10,525,901 Loans and advances to customers, gross 321,933,190 287,829,213 268,437,556 To the portfolios which the Bank presents limited historic data, reference external information are used to complement internal available data. The portfolios for which reference external information represent significant data to measure the expected credit losses are present below. 2018 Probability of default Default loss Exposure Commercial and industrial 146,293,616 8% 42% Real Estate Credit - construction 36,515,352 4% 12% Individual loans 137,287,593 8% 64% Leasing 1,836,629 5% 32% The exposure above are related to the credit operations. The Bank understands that the exposure related to the avals and sureties and other financial assets at amortized cost have low risk. b.3) Observed loss: measures of credit cost The Bank monthly estimate losses related to credit risk and then we compare those estimates with actual losses of the month. Periodically conduct tests in order to monitor and maintain control over credit risk. To complement the use of admission and rating, the Bank use other measures that supports the prudent and effective management of credit risk, based on the loss observed. The cost of credit is measured by the sum of credit losses and to the average loans portfolio of the same year. b.4) Credit risk cycle Banco Santander has a global view of its credit portfolio throughout the various phases of the risk cycle, with a level of detail that allows us to evaluate the current situation of risk and any movements. This mapping is followed by the Board of Directors and the Executive Committee of the bank that no only sets policies and risk procedures, limits and delegates responsibilities. It also approves and supervises the activities of the area. The risk management process consists of identifying, measuring, analyzing, controlling, negotiating and deciding on, as appropriate, the risks incurred in the Bank's operations and companies of the conglomerate. The risk cycle comprises three different phases: • Pre-sale: this phase includes the risk planning and setting targets, determination of the Bank's risk appetite, approval of new products, risk analysis and credit rating process, and limit setting. • Sale: this is the decision-making phase for both pre-classified and specific transactions. • Post-sale: this phase comprises the risk monitoring, measurement and control processes and the recovery process. Planning and setting risk limits Risk limit setting is a dynamic process that identifies Banco Santander's risk appetite by assessing business proposals and its risk attitude. This process is defined through the risk appetite approved by the Bank's Management and the units. In the case of individualized risks, the most basic level is the customer, for which individual limits are set. For GCB clients, a pre-classification model is used based on a system of measurement and monitoring of economic capital. In relation to the Corporate segment, the operational limit model is used in maximum nominal credit amounts. To the risks of customers with standardized management, the limits of the portfolios are planned using credit management programs (SGP) agreed document for the areas of business and risks, and approved by the Executive Committee. This document contains the results expected for the business in terms of risk and return, beyond the limits which govern the activity and risk management. This client group has a more automated treatment in risks. Risk analysis and rating process Risk analysis is a pre-requisite for the approval of loans to clients by the Bank. This analysis consists of examining the counterparty's ability on meeting its contractual obligations to the Banco Santander, which involves analyzing the client's credit quality, its risk transactions, solvency, and sustainability of business and the return to be obtained in view of the risk assumed. The risk analysis is conducted annually, at least, and can be held shortly when client profile indicates (through systems with centralized alerts, managers visits to clients or specific credit analysis), or when operations are not covered by pre-classification. Decision-Making on Operations The process of decision making on operations aims to analyze and adopt adopt in accordance with pre-established policies, taking into account risk appetite and any elements of the operation that are important in assessing risk and return. The Banco Santander uses, among others, the RORAC methodology (profitability on risk-adjusted capital), for risk analysis and pricing in the decision-making process on transactions and deals. Risk monitoring and control The preventive detection of the operation's credit quality is from the commercial manager responsibility in conjunction with the risk analyst. Additionally, the risk monitoring is made through a permanent observation process in order to anticipate the identification of incidents which can occur in the evolution of the operations, clients and environment. This monitoring process may result in the client's classification in SCAN. This is a system which allows the differentiation of the management level and the action to be taken case-by-case. Risk control function The control function is performed by assessing risks from various complementary perspectives, the main pillars are the control by geographical location, business area, management model, product and process, facilitating thus the detection of specific areas requiring measures for which decisions should be taken. To obtain an overview of the bank's loan portfolio over the various phases of the credit cycle, with a level of detail that allows the assessment of the current risk situation and any movements. Any changes in the Bank's risk exposure are controlled on an ongoing and systematic basis. The impacts of these changes in certain future situations, both of an exogenous nature and those arising from strategic decisions, are assessed in order to establish measures that place the profile and amount of the loss portfolio within the parameters set by Executive Commission. b.5) Credit recovery "Strategies and action channels are defined according to the days of past due loans and the amounts, that result in a Map of Responsibilities and always look as the first alternative, the client's recovery. The Bank uses tools as behavioral scoring to study the collection performance of certain groups, in order to reduce costs and increase recoveries. These models seek to measure the probability of clients becoming overdue adjusting collection efforts so that clients less likely to recover, receive timely actions. In cases the payments is most likely to happen, the focus is given in maintaining a healthy relationship with clients. All clients with severe or rescheduled credits delays values have internal restrictions. Clients with high risk index have a model of recovery, with a commercial follow-up and a recovery specialist. b.6) Credit risk from other perspective Certain areas and specific views of credit risk deserve a specialist's attention, complementary to global risk management. Concentration risk Concentration risk is an essential factor in the area of credit risk management. The Bank constantly monitors the degree of concentration of its credit risk portfolios, by geographical area/country, economic sector, product and client group. The risk committee establishes the risk policies and reviews the exposure limits required to ensure adequate management of credit risk portfolio concentration. From the sectorial standpoint, the distribution of the corporate portfolio is adequately diversified. The Bank's Risk Area works closely with the Finance Area in the active management of credit portfolios, which includes reducing the concentration of exposures through several techniques, such as the arrangement of credit derivatives for hedge purposes or the performance of securitization transactions, in order to optimize the risk/return ratio of the total portfolio. Credit risk from financial market operations This heading includes the credit risk arising in treasury operations with clients, mainly credit institutions. These operations are performed both via money market financing products with different financial institutions and via derivative instruments arranged for the purpose of serving our clients. Risk control is performed using an integrated, real-time system that enables the Bank to know at any time the unused exposure limit with respect to any counterparty, any product and maturity and at any Bank unit. Credit risk is measured at its current market value and its potential value (exposure value considering the future variation in the underlying market factors). Therefore, the equivalent credit risk (CRE) is defined as the sum of net replacement value plus the maximum potential value of the contracts in the future. Environmental risk The Banco Santander's Social and Environmental Responsibility Policy (PRSA), which follows the guidelines of CMN Resolution 3232/2014 and the SARB Regulation Nº. 14 of Febraban, establishes guidelines and consolidates specific policies for socio-environmental practices in business and in relationships with stakeholders. These practices include the management of socio-environmental risks, impacts and opportunities related to topics such as adequacy in credit granting and use, supplier management and socio-environmental risk analysis, which is carried out through the analysis of clients' socio-environmental practices. and Varejo, of the Corporate segment 3 (one of the Corporate Retail segments of the Bank), which have limits or credit risk above R $ 5 million and which are part of the 14 socio-environmental care sectors. In this case, the socio-environmental risk is analyzed in order to mitigate the issues of operational risk, capital risk, credit risk and reputational risk. Since 2009, Santander has been a signatory to the Equator Principles and this set of guidelines is used to mitigate socio-environmental risks in the financing of large projects. The commitments assumed in the PRSA are detailed in other Bank policies, such as the Anti-Corruption Policy, Supplier Relationships and Homologation Policies and Social and Environmental Risk Policies, as well as the Private Social Investment Policy, which aims to guide the strategy in this area. and to present guidelines for social programs that strengthen this strategy. b.7) Credit Management - Main changes The trends observed in 2018 were consistent with those of 2017, where in a challenging economic scenario, the Bank model proved to be effective. The Bank was able to preserve the good quality of the business and did not present large variations in its default rate. In December 2018, this index was 7.0% against 6.6%, on December 31, 2017 and 7.0% on December 31, 2016. This income was possible thanks to a combination of factors. Among them, a credit mix with focus on safer lines; partnerships; a deep knowledge and monitoring of the client's financial life; and the deployment of strong debt renegotiation campaigns. The involvement of senior management in decision making (held collectively at our Committees), besides independence Risks relating to the business, allow more assertive decisions and credit risk reduction. The analysis of credit for projects and companies in the Wholesale segment, continue to integrate opinions of our area of Environmental Risk. Below is a table showing the evolution of the main credit indicators. 2018 2017 2016 Credit risk exposure - customers (Thousand of Reais) 364,193,664 330,474,249 301,702,586 Loans and advances to customers, gross (note 9) 321,933,190 287,829,213 268,437,556 Contingent Liabilities - Guarantees and other sureties (note 44.a) 42,260,474 42,645,036 33,265,030 Non-performing loans ratio (%) - unaudited 6.98% 6.65% 7.04% Impairment coverage ratio (%) - unaudited 102.42% 95.39% 96.31% Specific credit loss provisions, net of RAWO (*) (Thousand of Reais) - unaudited 22,969,315 18,261,638 18,191,126 Cost of credit (% of risk) - unaudited 3.90% 3.98% 4.52% Data prepared on the basis of management criteria and the accounting criteria of the controller unit. (*) RAWO = Recoveries of Assets Derecognized. The Bank incorporates information about the future both in its assessment if the credit risk of an instrument has increased substantially since the initial recognition and in its measurement of the expected credit losses. Based on guidance from its internal committees and economic experts and considering a range of actual and anticipated external information, the Bank develops a base scenario as well as other possible scenarios. This process involves the projection of two or more additional economic scenarios and considers the respective probabilities of each result. External information includes economic data and forecasts published by government agencies and monetary authorities and selected private sector analysts and academics. The base case represents the most likely result and is in line with the information used by the Bank for other purposes, such as strategic planning and budgeting. The other scenarios represent more optimistic and pessimistic results. Periodically, the Bank conducts more extreme stress tests to adjust its determination of these other representative scenarios. The Bank identified and documented the main determinants of credit risk and credit losses for each portfolio of financial instruments and, using a historical data analysis, estimated the relationships between macroeconomic variables and credit risks and credit losses. 2018 Unemployment rates 11.4% Interest Rates 6.5% increase in GDP 1.8% The expected relation between key-indicators and default rates and several financial assets losses were predicted based on the historic analysis data of recent years. c) Market Risk Market risk is the exposure to risks such as interest rates, exchange rates, prices of goods, prices in the stock market and others values, according to the type of product, volume of operations, term and conditions of the agreement and underlying volatility. The Bank operates according to global policies, within the Group's risk tolerance level, aligned with the objectives in Brazil and in the world. With this purpose, it has developed its own Risk Management model, according to the following principles: · Functional independence; · Executive capacity sustained by knowledge and proximity with the client; · Global reach of the function (different types of risks); · Collective decision-making, that evaluates a variety of possible scenarios and do not compromise the results with individual decision (including Brazil Executive Risk Committee - Comitê Executivo de Riscos Brasil). This Comitee delimits and approves the operations. The Asset and Liabilities Committee, which responds for the capital management and structural risks, including country-risk, liquidity and interest rates. · Management and improvement of the equation risk/return; and · Advanced methodologies for risk management, such as Value at Risk - VaR (historical simulation of 521 days with a confidence level of 99% and time horizon of one day), scenarios, financial margin sensibility, equity value and contingency plan. The Market Risks structure is part of the Vice Presidency of Credit and Market Risks, an independent area that applies risk policies taking into consideration the guidelines of the Board of Directors and the Risks Division of Santander in Spain. c.1) Activities subject to market risk The measurement, control and monitoring of the market risk area comprises all operations in which net worth risk is assumed. This risk arises from changes in the risk factors -interest rate, exchange rate, equities, commodity prices and the volatility thereof- and from the solvency and liquidity risk of the various products and markets in which the Bank operates. The activities are segmented by risk type as follows: I. Trading: this item includes financial services for clients, trading operations and positioning mainly in fixed-income, equity , foreign currency products and shares. II. Balance sheets management: A risk management assessment aims to give stability to interest income from the commercial and economic value of the Bank, maintaining adequate levels of liquidity and solvency. The risk is measured by the balance sheets exposure to movements in interest rates and level of liquidity. III. Structural risks: · Structural foreign currency risk/hedges of results: foreign currency risk arising from the currency in which investments in consolidable and non-consolidable companies are made (structural exchange rate). This item also includes the positions taken to hedge the foreign currency risk on future results generated in currencies other than the Real (hedges of results). · Structural equities risk: this item includes equity investments in non-consolidated financial and non-financial companies that give rise to equities risk. The Financial Management area is responsible for the balance sheet management risk and structural risks through the application of uniform methodologies adapted to the situation of each market in which the Bank operates. Thus, in the convertible currencies area, Financial Management directly manages the Parent's risks and coordinates the management of the other units operating in these currencies. Decisions affecting the management of these risks are taken through the ALCO (Asset Liability Control committees) in the respective countries. The Financial Management goal is to ensure the stability and recurring nature of both the net interest margin of the commercial activity and the Bank's economic value, whilst maintaining adequate liquidity and solvency levels. Each of these activities is measured and analyzed using different tools in order to reflect their risk profiles as accurately as possible. Interest rate Risk The following table aggregates by product the cash flows of the operations of our perimeter of companies that have interest income. The transactions are presented by the book balance at the closing date of the years 2018, 2017 and 2016. It is not associated with the risk management of changes in interest rates or indexer mismatches, which is done by monitoring metrics of Marketplace. However, it allows to evaluate the concentrations of term and possible risks and below it, the balances of the same products are presented at the redemption value at maturity, except for the line dealing with receivables and obligations linked to derivative contracts. 2018 Position of accounts subject to interest rate risk In millions of Reais 0 to 30 days 31 to 180 days 181 to 365 days 1 to 5 years Above 5 years Total Interest-earning assets: Financial Assets Held For Trading 8,193 6,155 12,013 67,606 25,964 119,931 Debt instruments 5,359 5,192 8,294 58,363 23,460 100,668 Equity instruments 807 - - - - 807 Trading derivatives 2,027 963 3,719 9,243 2,504 18,456 Other Financial Assets At Fair Value Through Profit Or Loss 677 9,091 368 16,702 3,577 30,415 Debt instruments 379 9,091 368 16,702 3,577 30,117 Equity instruments 298 - - - - 298 Non-Current Assets Held For Sale 24 521 89 3,603 3,826 8,063 Reserves from Brazilian Central Bank 70,103 - - - - 70,103 Loans and Receivables 27,387 101,441 35,900 85,318 60,966 311,012 Total 106,384 117,208 48,370 173,229 94,333 539,524 Interest-bearing liabilities: Deposits from credit institutions 200,818 47,172 65,606 71,413 5,343 390,352 Subordinated debts 9,857 - - - 9,687 19,544 Marketable debt securities 13,353 20,875 14,612 30,138 9,715 88,693 Trading derivatives 1,104 1,370 3,257 9,673 3,322 18,726 Short positions 32,440 - - - - 32,440 Total 257,572 69,417 83,475 111,224 28,067 549,755 2017 Position of accounts subject to interest rate risk In millions of Reais 0 to 30 days 31 to 180 days 181 to 365 days 1 to 5 years Above 5 years Total Interest-earning assets: Financial Assets Held For Trading 5,541 1,779 6,556 29,968 10,194 54,038 Debt instruments 653 890 5,739 16,709 8,148 32,139 Equity instruments 490 - - - - 490 Trading derivatives 4,398 889 818 13,259 2,046 21,410 Available-For-Sale Financial Assets 2,032 1,272 17,092 46,502 23,711 90,609 Debt instruments 925 1,272 17,092 46,502 23,711 89,503 Equity instruments 1,107 - - - - |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Policies | The accounting policies and method of measurement applied in preparing the consolidated financial statements were as follows: |
Foreign currency transactions | 2.1 Foreign currency transactions The financial statements are presented in Brazilian Reais, the functional and reporting currency of Banco Santander and its subsidiaries. The assets and liabilities and foreign subsidiary are converted to Real as follows: - Assets and liabilities are translated at the exchange rate at the balance sheets date. - Revenues and expenses are translated at the monthly average exchange rates. - Gain and losses on translation of net investment are recorded in the statement of comprehensive income, in “exchange rate of investees located abroad”. |
Basis of consolidation | 2.2 Basis of consolidation i. Subsidiaries “Subsidiaries” are defined as entities over which the Bank has control. Control is based on whether the Bank has: i) power over the investee; ii) exposure, or rights, to variable returns from its involvement with the investee; and iii) the ability to use its power over the investee to affect the amount of the returns, as set forth in the law, the Bylaws or agreement. Consolidation of a subsidiary begins when the Bank obtains control over the subsidiary and ceases when the Bank loses control of the subsidiary. Specifically, income and expense of a subsidiary acquired or disposed during the year are included in the consolidated income statement and other comprehensive income from the date the Bank gains controls until the date when the Bank ceases to control the subsidiary. Profit or loss and each component of Other Comprehensive Income are attributed to the owners of the Bank and to the non-controlling interests even if the effect is attributed to non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Bank and to the non-controlling interest even if this generates a negative balance for non-controlling interests. All transactions, balances, income and expenses between the companies of the Santander Group are eliminated in the consolidated financial statements. Changes in the Santander Group's interest in a subsidiary that do not result in loss of control are registered as equity transactions. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Company. When the Bank loses control of a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. Amounts previously recognized in other comprehensive income in relation to the subsidiary are registered (i.e. reclassified to income statement or transferred directly to retained earnings) in the same manner as it would be required if the relevant assets or liabilities are disposed of. The fair value of any investment retained in the former subsidiary at the date when control got lost is considered as the fair value on initial recognition for subsequent accounting under IAS 39 Financial Instruments: Recognition and Measurement or, when applicable, the costs on initial recognition of an investment in an associate or jointly controlled entity. ii. Interests in joint ventures (jointly controlled entities) and associates Joint ventures mean interests in entities that are not subsidiaries but which are jointly controlled by two or more unrelated entities. This is evidenced by contractual arrangements whereby two or more entities (“ventures”) acquire interests in entities (jointly controlled entities) so that strategic financial and operating decisions affecting the joint venture require the unanimous consent of the ventures. Associates are entities over which the Bank is in a position to exercise significant influence (significant influence is the power to participate in the financial and operating decisions of the investee) but it does not control or has joint control over the investee. In the consolidated financial statements, interest in joint ventures and investments in associates are registered using the equity method, i.e. at the Bank's share of net assets of the investee, after taking into consideration the dividends received from capital reductions and other related transactions. Relevant information regarding companies registered under the equity method by the Bank is provided in note 11. iii. Business combinations, acquisitions and disposals A business combination is the combination of two or more separate entities or economic units into one single entity or group of entities and is registered in accordance with IFRS 3 - “Business Combinations”. Business combinations are carried out so that the Bank obtains control over an entity and are recognized for accounting purposes as follow: • The Bank measures the cost of the business combination, defined as the fair value of the assets offered, the liabilities incurred and the equity instruments issued, if any. • The fair values of the assets, liabilities and contingent liabilities of the acquired entity or business, including any intangible assets which might not have been recognized by the acquiree, are estimated at the acquisition date and recognized in the consolidated financial statement. • The excess of the acquisition cost over the fair value of the identifiable net assets acquired are recognized as goodwill (note 13). The excess of fair value of the identifiable net assets over the acquisition cost is an advantageous purchase gain and it is recorded as income on the date of the acquisition. The note 3 includes a description of the most significant transaction carried out in 2018, 2017 and 2016. iv. Investment Funds These include investment funds in which the Santander Group companies hold a substantial interest or the entirety of the interests and are therefore exposed to, or have rights, to variable returns and have the ability to affect those returns through power over the fund, in accordance with IFRS 10 - Consolidated Financial Statements and are therefore, consolidated in these financial statements. |
Definitions and classification of financial instruments | 2.3 Definitions and classification of financial instruments i. Definitions “Financial instrument” is any contract that gives rise to a financial asset of one entity and, simultaneously, to a financial liability or financial interest of another entity. “Equity instrument” is any agreement that evidences a residual interest in the asset of the issuing entity after deducting all of its liabilities. “Financial derivative” is a financial instrument whose value changes in response to the change in an observable market variable (such as an interest rate, foreign exchange rate, financial instrument price, market index or credit rating), whose initial investment is zero or very small compared with other financial instruments with a similar response to changes in market factors, and which is settled at a future date. “Hybrid financial instruments” are contracts that simultaneously include a non-derivative host contract together with a derivative, known as an embedded derivative, that is not separately transferable and has the effect to make part of the cash flow of the hybrid contract vary similar to a stand-alone derivative. The following transactions are not treated for accounting purposes as financial instruments: • Investments in subsidiaries, jointly controlled entities and associates (note 3&11). • Rights and obligations under employee benefit plans (note 22). ii. Classification of financial assets for measurement purposes Financial assets are initially classified into the various categories used for management and measurement purposes, unless they have to be presented as Non-current assets held for sale or they relate to Cash, cash balances at Central Banks and other deposits on demand, Changes in the fair value of hedged items in portfolio hedges of interest rate risk (asset side), Hedging derivatives and Investments, which are reported separately. Financial assets are included for measurement purposes in one of the following categories: • Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading: this category includes the financial assets acquired to generate short-term profit resulting from the fluctuation of its prices and financial derivatives not classified as hedging instruments, whose primary intention of the Bank is to trade them frequently. • Financial Assets Measured At Fair Value Through Profit Or Loss: this category includes the financial assets that did not meet the pre-established criteria when evaluating the SPPI Test. • Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss: this category includes the financial assets that at the time of initial designation was made the fair value option. • Other Financial Assets At Fair Value Through Profit Or Loss (applicable for comparatives): this category includes hybrid financial assets not held for trading that are measured entirely at fair value and financial assets not held for trading that are included in this category in order to provide more relevant information, either because this eliminates or significantly reduces recognition or measurement inconsistencies (accounting mismatches) that would otherwise arise from measuring assets or liabilities or recognizing the gains or losses on them on different bases, or because a group of financial assets or financial assets and liabilities is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the group is provided on that basis to the Group's key management personnel. Financial instruments included in this category (and “Other financial liabilities at fair value through profit or loss”) are permanently subject to a consistent system of measurement, manage and control of all risks and returns that enables all the financial instruments involved to be identified and monitored and allows the effective reduction of risk checked. Financial assets may only be included in this category on the date they are acquired or originated. • Financial Assets Measured At Fair Value Through Other Comprehensive Income: are stated at fair value. This category does not include debt instruments classified as “Held-to-maturity investments” or “Financial assets at fair value through profit or loss”, and equity instruments issued by entities other than subsidiaries, associates and jointly controlled entities, provided that such instruments have not been classified as “Financial assets held for trading” or as “Other financial assets at fair value through profit or loss”. The results rising from changes in fair value are recognized at the Financial Assets Measured At Fair Value Through Other Comprehensive Income line in the Shareholders´ equity except for cumulative impairment losses which are recognized in statement of profit or loss. When the investment is sold or has evidences of decreases on the fair value due to impairment, the previously recognized result at the same Shareholders´ Equity line, mentioned above is reclassified to the statement of profit or loss. • Financial Assets Measured At Amortized Cost: this category includes financing granted to third parties, based on their nature, irrespective of the type of borrower and the form of financing, including finance lease transactions in which the consolidated entities act as lessors. The consolidated entities generally intend to hold the loans and credits granted by them until their final maturity and, therefore, they are presented in the consolidated balance sheets at their amortized cost (which includes the required adjustments to reflect estimated impairment losses). • Held-to-maturity investments(applicable for comparatives): this category includes debt instruments traded in an active market, with fixed maturity and with fixed or determinable payments, for which the Bank has both the intention and proven ability to hold to maturity. These investments are measured at amortized cost less any impairment, with revenue recognized on an effective yield basis. iii. Classification of financial assets for presentation purposes Financial assets are classified by nature into the following headings in the consolidated financial statements: • Cash and balances with the Bacen: cash balances and balances receivable on demand relating to deposits with Bacen and credit institutions. • Financial Assets Measured At Amortized Cost: includes the debit balances of all credit and loans granted by the Bank, other than those represented by securities, as well as finance lease receivables and other debit balances of a financial nature in favor of the Bank, such as checks drawn on credit institutions, balances receivable from clearing houses and settlement agencies for transactions on the stock exchange and organized markets, bonds given in cash, capital calls, fees and commissions receivable for financial guarantees and debit balances arising from transactions not originating in banking transactions and services, such as the collection of rentals and similar items. • Loans and other amounts with credit institutions: credit of any nature in the name of financial institutions. • Loans and advances to clients: includes debit balances of all the remaining credit and loans granted by the Bank, including money market operations through centralized counterparties. • Debt instruments: bonds and other securities that represent a debt for their issuer, that generate an interest return, and that are in the form of certificates or book entries. • Equity instruments: Financial instruments issued by other entities, such as shares, which have the nature of equity instruments for the issuer, other than investments in subsidiaries, joint ventures or associates. Investment fund units are included in this item. • Trading derivatives: includes the fair value in favor of the Bank of derivatives which do not form part of hedge accounting. • Hedging derivatives: includes the fair value in favor of the Bank of derivatives designated as hedging instruments in hedge accounting. • Investments in associates and jointly controlled companies: includes the investments made in the share capital of associates and jointly controlled companies. iv. Classification of financial liabilities for measurement purposes Financial liabilities are classified for measurement purposes into one of the following categories: • Other Financial Assets At Fair Value Through Profit Or Loss: this category includes financial liabilities incurred for the purpose of generating a profit in the near term from fluctuations in their prices, financial derivatives not designated as hedging instruments, and financial liabilities arising from the outright sale of financial assets acquired under reverse repurchase agreements ("reverse repos") or borrowed (short positions). • Other Financial Assets At Fair Value Through Profit Or Loss: financial liabilities are included in this category when they provide more relevant information, either because this eliminates or significantly reduces recognition or measurement inconsistencies (accounting mismatches) that would otherwise arise from measuring assets or liabilities or recognizing the gains or losses on them on different bases, or because a group of financial liabilities or financial assets and liabilities is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the group is provided on that basis to the Group's key management personnel. • Financial liabilities at amortized cost: financial liabilities, irrespective of their instrumentation and maturity, not included in any of the above-mentioned categories which arise from the ordinary borrowing activities carried on by financial institutions. v. Classification of financial liabilities for presentation purposes Financial liabilities are classified by nature into the following items in the consolidated financial statements: • Deposits from Bacen: deposits of any nature received from Bacen. • Deposits from credit institutions: deposits of any nature, including credit received and money market operations in the name of credit institutions. • Client deposits: includes deposits of any nature such as demand deposits, saving deposits and time deposits including money market operation received from client. • Marketable debt securities: includes the amount of bonds and other debt represented by marketable securities, other than subordinated liabilities. • Trading derivatives: includes the fair value, with a negative balance for the Bank, of derivatives which do not form part of hedge accounting. • Short positions: includes the amount of financial liabilities arising from the outright sale of financial assets purchased under reverse repurchase agreements or borrowed. • Subordinated liabilities: amount of financing received which, for the purposes of payment priority, ranks behind ordinary debt. This category also includes the financial instruments issued by the Bank which, although equity for legal purposes, do not meet the requirements for classification as equity. • Other financial liabilities: includes the amount of payment obligations having the nature of financial liabilities not included in other items, and liabilities under financial guarantee contracts, unless they have been classified as non-performing. • Hedging derivatives: includes the fair value of the Bank's liability in respect of derivatives, including embedded derivatives separated from hybrid financial instruments, designated as hedging instruments in hedge accounting. • Equity instruments: financial instruments issued by other entities, such as shares, with the nature of equity instruments for the issuer, except investments in subsidiaries, jointly controlled entities or associates. The shares of non-consolidated investment funds are included in this item. |
Funding, debt notes issued and other liabilities | 2.4 Funding, debt notes issued and other liabilities Funding debt rates and other liabilities Instruments are recognized initially at fair value, considered primarily as the transaction price. They are subsequently measured at amortized cost and its expenses are recognized as a financial cost. Among the liabilities initial recognition methods, it is important to emphasize those compound financial instruments which are classified as such due to the fact that the instruments contain both, a debt instrument (liability) and an embedded equity component (derivative). The recognition of a compound instrument consists of a combination of (i) a main instrument, which is recognized as an entity's genuine liability (debt) and (ii) an equity component (derivative convertible into ordinary share). The issue of "Notes" must be registered in specific heading liabilities and updated according to the agreed rates and adjusted by the effect of exchange rate variations, when denominated in foreign currency. All remuneration related to these instruments, such as interest and Exchange variation (difference between the functional currency and the currency in which the instrument was named) shall be registered as expenses for the period, according to the accrual basis. The relevant details of these issued instruments are described in note 20. |
Measurement of financial assets and liabilities and recognition of fair value changes | 2.5 Measurement of financial assets and liabilities and recognition of fair value changes In general, financial assets and liabilities are initially recognized at fair value which, in the absence of evidence to the contrary, is deemed to be the transaction price. Financial instruments not measured at fair value through profit or loss, are adjusted by the transaction costs. Financial assets and liabilities are subsequently measured at each period-end as follows: i. Measurement of financial assets Financial assets are measured at fair value, without deduction of estimated costs of transaction that may be incurred on their disposal, except for loans and receivables, held-to-maturity investments, equity instruments whose fair value cannot be determined in a sufficiently objective manner and financial derivatives that have as equity instruments subject and are settled by delivery of those instruments. The fair value of a financial instrument on a given date is taken to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The most objective and common reference for the fair value of a financial instrument is the price that would be paid for it on an active, transparent and deep market (quoted price or market price). If there is no market price for a given financial instrument, its fair value is estimated on the basis of valuation techniques commonly used by the international financial community, according to the specific features of the instrument to be measured and, particularly, the various types of risk associated with it. All derivatives are recognized in the balance sheets at fair value from the trade date. If the fair value is positive, they are recognized as assets and if the fair value is negative, they are recognized as liabilities. The changes in the fair value of derivatives from the trade date are recognized in “Gains (losses) on financial assets and liabilities” in the consolidated income statement. Specifically, the fair value of standard financial derivatives included in the portfolios of financial assets or liabilities held for trading is deemed to be their daily quoted price and if, for exceptional reasons, the quoted price cannot be determined on a given date, these financial derivatives are measured using methods similar to those used to measure over the counter “OTC” derivatives. The fair value of OTC derivatives is taken to be the sum of the future cash flows arising from the instrument, discounted to present value at the date of measurement (“present value” or “theoretical close”) using valuation techniques commonly used by the financial markets: “net present value” (NPV), option pricing models and other methods. “Financial Assets Measured At Amortized Cost” and “Held-to-maturity investments” are measured at amortized cost using the effective interest method. “Amortized cost” is the acquisition cost of a financial asset or liability plus or minus, as appropriate, the principal repayments and the cumulative amortization (taken to the income statement) between the difference of the initial cost and the maturity amount. In the case of financial assets, amortized cost furthermore includes any reductions for impairment or uncollectibility. In the case of loans and receivables hedged in fair value hedges, the changes in the fair value of these assets related to the risk or risks being hedged are recognized. The “effective interest rate” is the discount rate that exactly matches the initial amount of a financial instrument to all its estimated cash flows of all kinds over its remaining life. For fixed rate financial instruments, the effective interest rate coincides with the contractual interest rate established on the acquisition date plus, where applicable, the fees and transaction costs that, because of their nature, form part of their financial return. In the case of floating rate financial instruments, the effective interest rate coincides with the rate of return prevailing in all connections until the next benchmark interest reset date. Equity instruments whose fair value cannot be determined in a sufficiently objective manner are measured at acquisition cost adjusted, where appropriate, by any related impairment loss. The amounts at which the financial assets are recognized represent, in all material respects, the Bank's maximum exposure to credit risk at each reporting date. Also, the Bank has received collateral and other credit enhancements to mitigate its exposure to credit risk, which consist mainly of mortgage guarantees, cash collateral, equity instruments and personal security, assets leased out under leasing and renting agreements, assets acquired under repurchase agreements and securities loans and derivatives. ii. Measurement of financial liabilities In general, financial liabilities are measured at amortized cost, as defined above, except for those included under “Financial Assets Measured At Fair Value Through Profit Or Loss” and “Other financial liabilities at fair value through profit or loss” and financial liabilities designated as hedge items (or hedging instruments) in fair value hedges, which are measured at fair value. iii. Recognition of fair value changes As a general rule, changes in the carrying amount of financial assets and liabilities are recognized in the consolidated income statement, distinguishing between those arising from the accrual of interest and similar items -which are recognized under “Interest and similar income” or “Interest expense and similar charges”, as appropriate - and those arising for other reasons, which are recognized at their net amount in the heading “Gains (losses) on financial assets and liabilities (net)”. Adjustments due to changes in fair value arising from Available-for-sale financial assets are recognized temporarily in equity in then heading “Other Comprehensive Income”. Items charged or credited to this account remain in the Bank's consolidated equity until the related assets are written-off, whereupon they are charged to the consolidated income statement. iv. Hedging transactions The consolidated entities use financial derivatives for the following purposes: i) to provide these instruments to clients who request them in the management of their market and credit risks; ii) to use these derivatives in the management of the risks of the Bank entities' own positions and assets and liabilities (“hedging derivatives”); and iii) to obtain gains from changes in the prices of these derivatives (“financial derivatives”). Financial derivatives that do not qualify for hedge accounting are treated for accounting purposes as trading derivatives. Financial derivatives that do not qualify for hedge accounting are treated for accounting purposes as trading derivatives. A derivative qualifies for hedge accounting if all the following conditions are met: 1) The derivative hedges one of the following three types of exposure: a. Changes in the fair value of assets and liabilities due to fluctuations, among other, in the interest rate and/or exchange rate to which the position or balance to be hedged is subject (“fair value hedge”); b. Changes in the estimated cash flows arising from financial assets and liabilities, commitments and highly probable forecast transactions (“cash flow hedge”); c. The net investment in a foreign operation (hedge of a net investment in a foreign operation). 2) It is effective in offsetting exposure inherent in the hedged item or position throughout the expected term of the hedge, which means that: a. At the date of arrangement the hedge is expected, under normal conditions, to be highly effective (prospective effectiveness). b. There is sufficient evidence that the hedge was actually effective during the whole life of the hedged item or position (retrospective effectiveness). 3) There must be adequate documentation evidencing the specific designation of the financial derivative to hedge certain balances or transactions and how this effective hedge was expected to be achieved and measured, provided that this is consistent with the Bank's management of own risks. The changes in value of financial instruments qualifying for hedge accounting are recognized as follows: a. In fair value hedges, the gains or losses arising on both the hedging instruments and the hedged items (attributable to the type of risk being hedged) are recognized directly in the consolidated income statement. b. In cash flow hedges, the effective portion of the change in value of the hedging instrument is recognized temporarily in equity under “Other comprehensive Income - Cash flow hedges” until the forecast transactions occur, when it is recognized in the consolidated income statement, unless, if the forecast transactions result in the recognition of non-financial assets or liabilities, it is included in the cost of the non-financial asset or liability. The ineffective portion of the change in value of hedging derivatives is recognized directly in the consolidated income statement. c. The ineffective portion of the gains and losses on the hedging instruments of cash flow hedges and hedges of a net investment in a foreign operation are recognized directly under “Gains (losses) on financial assets and liabilities (net)” in the consolidated income statement. If a derivative designated as a hedge instrument no longer meets the requirements described above due to expiration, ineffectiveness or for any other reason, the derivative is classified as a derivative measured at fair value through profit or loss. When fair value hedge accounting is discontinued (repealed, expired, sold our no longer meet hedge accounting criteria) the adjustments previously recognized on the hedged item are transferred to profit or loss at the effective interest rate re-calculated at the date of hedge discontinuation. The adjustments must be fully amortized at maturity. When cash flow hedges are discontinued, any cumulative gain or loss on the hedging instrument recognized in equity in the heading "Other comprehensive Income” (from the period when the hedge was effective) remains recognized in equity until the forecast transaction occurs at which time it is recognized in profit or loss, unless the transaction is no longer expected to occur, in which case any cumulative gain or loss is recognized immediately in profit or loss. For the accounting and disclosure of the hedge accounting structures as of December 31, 2018, the bank used the faculty of IFRS 9, to maintain the practices determined by IAS 39. |
Settlement of financial assets and liabilities | 2.6 Settlement of financial assets and liabilities The accounting treatment of transfers of financial assets depends on the extent to which the risks and rewards associated with the transferred assets are transferred to third parties: 1) If the Bank transfers substantially all the risks and rewards to third parties-unconditional sale of financial assets, sale of financial assets under an agreement to repurchase them at their fair value at the date of repurchase, sale of financial assets with a purchased call option or written put option that is deeply out of the money, securitization of assets in which the transferor does not retain a subordinated debt or grant any credit enhancement to the new holders, and other similar cases, the transferred financial asset is derecognized and any rights or obligations retained or created in the transfer are recognized simultaneously. 2) If the Bank retains substantially all the risks and rewards associated with the transferred financial asset -sale of financial assets under an agreement to repurchase them at a fixed price or at the sale price plus interest, a securities lending agreement in which the borrower undertakes to return the same or similar assets, and other similar cases, the transferred financial asset is not derecognized and continues to be measured by the same criteria as those used before the transfer. However, the following items are recognized: a. An associated financial liability, for an amount equal to the consideration received; this liability is subsequently measured at amortized cost. b. The income from the transferred financial asset not derecognized and any expense incurred on the new financial liability. 3) If the Bank neither transfers or retains substantially all the risks and rewards associated with the transferred financial asset - sale of financial assets with a purchased call option or written put option that is not deeply in or out of the money, securitization of assets in which the transferor retains a subordinated debt or other type of credit enhancement for a portion of the transferred asset, and other similar cases, the following distinction is made: a. If the transferor does not retain control of the transferred financial asset, the asset is derecognized and any rights or obligations retained or created in the transfer are recognized. b. If the transferor retains control, it continues to recognize the transferred financial asset for an amount equal to its exposure to changes in value and recognizes a financial liability associated with the transferred financial asset. The net carrying amount of the transferred asset and the associated liability is the amortized cost of the rights and obligations retained, if the transferred asset is measured at amortized cost, or the fair value of the rights and obligations retained, if the transferred asset is measured at fair value. |
Offsetting of financial instruments | 2.7 Offsetting of financial instruments Financial asset and liability balances are offset (i.e. reported in the consolidated balance sheets at their net amount) only if the Bank and their subsidiaries currently have a legally enforceable right to set off the recognized amounts and intend either to settle on a net basis, or to realize the asset and settle the liability simultaneously. Offsetting Agreements and Obligations Settlement (CMN Resolution 3.263/2005) - The Bank has an agreement for the clearing and settlement of obligations under the National Financial System (SFN), signed with individuals and legal entities, whether or not members of the SFN, resulting in higher financial settlement guarantee, with the parties that have this modality of agreement. These agreements establish that payment obligations to Banco Santander arising from credit and derivative operations, in the event of default by the counterparty, will be offset against Banco Santander's payment obligations with the counterparty. The following table provides details of financial assets and liabilities subject to offsetting at December 31, 2018, 2017 and 2016: Thousand of reais 2018 Financial assets, gross Financial assets Financial assets Assets: Derivatives 18,667,611 (304,165) 18,363,446 Repurchase agreements 44,836,491 - 44,836,491 Financial liabilities, gross Financial liabilities Financial liabilities Liabilities: Derivatives 18,771,000 (304,165) 18,466,835 Repurchase agreements 101,647,013 - 101,647,013 Thousand of reais 2017 Financial assets, gross Financial assets Financial assets Assets: Derivatives 17,262,888 - 17,262,888 Repurchase agreements 34,505,671 - 34,505,671 Financial liabilities, gross Financial liabilities Financial liabilities Liabilities: Derivatives 16,677,486 - 16,677,486 Repurchase agreements 97,421,579 - 97,421,579 Thousand of reais 2016 Financial assets, gross Financial assets Financial assets Assets: Derivatives 24,702,973 - 24,702,973 Repurchase agreements 47,528,393 - 47,528,393 Financial liabilities, gross Financial liabilities Financial liabilities Liabilities: Derivatives 20,236,615 - 20,236,615 Repurchase agreements 129,817,727 - 129,817,727 |
Regular way of financial assets purchases | 2.8 Regular way of financial assets purchases Regular way of financial assets purchases are recognized on trade date. The assets are settled when the rights to receive cash flows have expired or the Bank has transferred substantially all the risks and rewards of ownership. |
Impairment of financial assets | 2.9 Impairment of financial assets i. Definition A financial asset is considered impaired when there is objective evidence that events have occurred which: • Give rise to an adverse impact on the future cash flows that were estimated at the transaction date, in the case of debt instruments (loans and debt securities); • In the case of equity instruments, mean that their carrying amount may not be fully recovered. • Arising from the violation of terms of loans, and • During the Bankruptcy process. As a general rule, the adjustment of the value of the impaired financial instruments is recognized in the consolidated income statement for the period in which the impairment becomes evident, and the reversal, if any, of previously recognized impairment loss is recognized in the consolidated income statement for the period in which the impairment is reversed or reduced. ii. Debt instruments carried at amortized cost The amount of an impairment loss incurred for determination of the recoverable amount on a debt instrument measured at amortized cost is equal to the difference between its carrying amount and the present value of its estimated future cash flows (excluding future credit losses that have not been incurred) discounted the original effective interest rate of the financial asset (or the effective interest rate computed at initial recognition), and is presented as a reduction of the asset balance and recorded in income statements. In estimating the future cash flows of debt instruments the following factors are taken into account: • All the amounts that are expected to be obtained over the remaining life of the instrument, in this case, the provided guarantees. The impairment loss takes into account the likelihood of collecting accrued interest receivable • The various types of risk to which each instrument is subject; and • The circumstances in which collections will foreseeably be made. These cash flows are subsequently discounted using the instrument's effective interest rate. Specifically in regards to recoverable amount losses resulting from materialization of the insolvency risk of the obligors (credit risk), a debt instrument is impaired due to insolvency when there is evidence of a deterioration of the obligor's ability to pay, either because it is in arrears or for other reasons. The Bank has certain policies, methods and procedures for covering its credit risk arising from insolvency allocable to counterparties. These policies, methods and procedures are applied in the granting, in the examination and to document debt instruments, and contingent liabilities and commitments, the identification of their recoverable amount and the calculation of the amounts necessary to cover the related credit risk. The procedures applied in the identification, measurement, control and reduction of the exposure to credit risk, are based on an individual basis or grouped by similarity. • Clients with individual management: Wholesale clients, financial institutions and certain companies. Risk management is performed through an analysis complemented by tools to support the decision-making based in internal risk assessment. • Clients with standardized management: individuals and companies not classified as individual clients. Risk management models based on automated decision-making and risk assessment procedure, complemented, when the model is not comprehensive or accurate enough, by teams of analysts specialized in this type of risk. The credits related to clients standardized, are usually considered not recoverable when they have historical loss experience and delay greater than 90 days. Regarding the provision for impairment losses from credit risk, the Bank evaluates all loans. Loans are either individually or collectively evaluated for impairment. Loans accounted as amortized cost, which are not individually evaluated for impairment, are collectively evaluated for impairment, grouping them considering the similarity of risk. Loans individually evaluated for impairment are not included in balances that are collectively evaluated for impairment. The Bank first assesses whether objective evidence of impairment loss individually for financial assets are individually significant, and individually or collectively for financial assets are not individually significant. To measure the impairment loss on loans individually evaluated for impairment, the Bank considers the conditions of the borrower, such as his economic and financial situation, level of indebtedness, ability to generate income, cash flow , management, corporate governance and quality of internal controls, payment history, industry expertise, contingencies and credit limits, as well as characteristics of assets, such as their nature and purpose, type, sufficiency and liquidity level guarantees and total amount of credit, as well as based on historical experience of impairment and other circumstances known at the moment of evaluation. To measure the impairment loss on loans collectively evaluated for impairment, the Bank segregates financial assets into groups considering the characteristics and similarity of credit risk, in other words, according to segment, the type of assets, guarantees and other factors associated as the historical experience of impairment and other circumstances known at the time of assessment. In some cases the observable data required to estimate the amount of an impairment loss on a financial asset may be limited or no longer fully relevant to current circumstances. In such cases, an entity uses its experienced judgment to estimate the amount of any impairment loss. Similarly an entity uses its experienced judgment to adjust observable data for a group of financial assets to reflect current circumstances. The impairment loss is calculated by using statistical models that consider the following factors: Exposure at default (EAD) is the amount of risk exposure at the date of default by the counterparty. In accordance with IFRS, the exposure at default used for this calculation is the current exposure, as reported in the balance sheets. • Probability of default, or “PD”, is the probability of the borrower failing to meet its principal and/or interest payment obligations. PD is measured using a time horizon of one year; that is, it quantifies the probability of the borrower default in the coming year. A loan will be defaulted if either the principal or interest become past due by ninety days or more or the loan is active but there are doubts about the solvency of the counterparty (subjective doubtful assets). • Loss given default, or “LGD”, is the loss arising in the event of default. LGD calculation is based on the net charge offs on defaulted loans, taking into account the guarantees/collateral associated with the loans, the income and expenses associated with the recovery process and the timing of default. • Loss identification period, or “LIP,” is the time period between the occurrence of a loss event and the identification of an objective evidence of this loss. In other words, it represents the time horizon from the credit loss occurrence until the effective confirmation of such loss. • In addition, prior to loans be written-off (which is only done after the Bank have completed all recovery efforts and after about 360 days late), it is registered fully provision of the loan´s remaining balance so this provision (allowance for loan losses) fully covers the losses. Thus, the Bank understands that its loan loss allowance methodology has been developed to meet its risk metrics and capture loans that could potentially become impaired iii. Debt or equity instruments classified as financial assets measured at fair value through other comprehensive income The difference between the amortized cost and fair value of debt or equity instruments classified as available for sale are recorded in equity under "Other Comprehensive Income." When there is objective evidence that the aforementioned differences are due to a prolonged decline in fair value, they are no longer recognized in equity and are reclassified, at the cumulative amount at that date, to the consolidated income statement. Losses from a prolonged decline in fair value relating to an investment in equity instruments are not reversed in subsequent periods. |
Repurchase agreements | 2.10 Repurchase agreements Purchases (sales) of financial instruments under a non-optional resale (repurchase) agreement at a fixed price (repos) are recognized in the consolidated financial statements as financing granted (received), based on the nature of the debtor (creditor), under Loans and advances with Bacen, Loans and advances to credit institutions or Loans and advances to clients (Deposits from Bacen, Deposits from credit institutions or Client deposits). Differences between the purchase and sale prices are recognized as interest over the deadline of the contract. |
Accounting for leases | 2.11 Accounting for leases i. Financial leases Financial leases are leases that transfer substantially all the risks and rewards incidental to ownership of the leased asset to the lessee. When the consolidated entities act as the lessors of an asset, the sum of the present value of the lease payments receivable from the lessee, including the exercise price of the lessee's purchase option at the end of the lease term when such exercise price is sufficiently below fair value at the option date such that it is reasonably certain that the option will be exercised, is recognized as lending to third parties and is therefore included under Financial Assets Measured At Amortized Cost in the consolidated financial statements. The finance income arising from these contracts is credited in the heading “Interest and similar income” in the consolidated income statement in order to achieve a constant rate of return over the deadline of the lease. |
Non-current assets held for sale | 2.12 Non-current assets held for sale “Non-current assets held for sale” includes the carrying amount of individual items or disposal groups or items forming part of a business unit earmarked for disposal (“Discontinued operations”), whose sale in their present condition is highly probable and is expected to occur within one year, the property or other non-current assets received by the consolidated entities as total or partial settlement of their debtors' payment obligations to them are deemed to be non-current assets held for sale through the completion of actions which normally occurs up to one year. Non-current assets held for sale are measured at the lower of fair value less costs to sell and their carrying amount at the date of classification in this category. These assets held for sale are not depreciated. Impairment losses on an asset or disposal group arising from a reduction in its carrying amount to its fair value (less costs to sell) are recognized in the heading “Gains (losses) on disposal and expenses of non-current assets held for sale not classified as discontinued operations” in the consolidated income statement. The gains on a non-current asset held for sale resulting from subsequent increases in fair value (less costs to sell) increase its carrying amount and are recognized in the consolidated income statement up to an amount equal to the impairment losses previously recognized. |
Residual maturity periods and average interest rates | 2.13 Residual maturity periods and average interest rates The analysis of the maturities of the balances of certain items in the consolidated financial statements at December 31, 2018, 2017 and 2016 is provided in note 44-d. |
Tangible assets | 2.14 Tangible assets “Tangible assets” includes the amount of buildings, land, furniture, vehicles, computer hardware and other fixtures owned by the Bank, including tangible assets received by the Bank in full or partial satisfaction of financial assets representing receivables from third parties which are intended to be held for continuing use and tangible assets acquired under finance leases are presented at acquisition cost, less the related accumulated depreciation and any impairment losses (net carrying amount higher than recoverable amount). Depreciation is calculated, using the straight-line method, on the basis of the acquisition cost of the assets less their residual value. The land on which the buildings and other structures are located has an indefinite life and, therefore, it is not depreciated. The tangible asset depreciation charge is recognized in the consolidated income statement and is calculated basically using the following depreciation rates (based on the average years of estimated useful life of the various assets): Annual Buildings for own use 4% Furniture 10% Fixtures 10% Office and IT equipment 20% Leasehold improvements 10% or up to contractual maturity The Bank assesses at end of each period, if there is indication that the items of tangible assets carrying amount may be impaired, that is if there is an asset with its carrying amount bigger than its recoverable amount, either for use or sale. Once an impairment loss of tangible assets is identified, it is adjusted to reach its recoverable amount by recognizing an impairment loss recorded in the heading "Impairment loss on other assets (Net)". Additionally the value of depreciation of that asset is recalculated in order to adjust the value of the life of the asset. In case of evidence or indication of a recovery of a tangible asset value, the Bank recognizes the reversal of the impairment loss amount recorded in prior years and should adjust the future depreciation expenses according to the lifetime value of the asset. Under no circumstance, a reversal of impairment loss of an asset will increase its carrying amount higher than the amount that it would have had no impairment loss been recognized in prior years. Upkeep and maintenance expenses relating to property, plant and equipment for own use are recognized as an expense in the period in which they are incurred. |
Intangible assets | 2.15 Intangible assets Intangible assets are identifiable non-monetary assets (separable from other assets) without physical substance which arise as a result of a legal transaction or software development. Only assets whose cost can be estimated reliably and from which the consolidated entities consider it probable that future economic benefits will be generated are recognized. Intangible assets are recognized initially at acquisition or production cost and are subsequently measured deducting any accumulated amortization and any accumulated impairment losses. i. Goodwill In the acquisition and/or merger of investment in subsidiary, any difference between the investment cost and the investor's share in net fair value of assets, liabilities and contingent liabilities of the investee (subsidiary or affiliate) is accounted for in accordance with IFRS 3 "Business Combination ". Goodwill is only recognized when it has been acquired for consideration and represents, therefore, a payment made by the acquirer in anticipation of future economic benefits from assets of the acquired entity that are not capable of being individually identified and separately recognized. At the end of each annual reporting period or whenever there is any indication of impairment goodwill is reviewed for impairment (i.e. a reduction in its recoverable amount to below its carrying amount) and, if there is any impairment, the goodwill is written down with a charge to Impairment on non financial assets (net) - Intangible assets in the consolidated income statement. The net fair value adjustments of assets, liabilities and contingent liabilities of the investee in relation to their carrying amount are allocated to individual identifiable assets acquired and liabilities assumed that comprise them based on their respective fair values at the date of purchase. In the case of a business combination made in stages, prior interest in the acquired is measured again at fair value at the acquisition date when control of the acquired is obtained. ii. Other intangible assets Other intangible assets are non-monetary assets without physical substance. Generally arising from software development and acquisition of rights that can generate benefits for the Bank. They can have characteristics of definite or indefinite period. Other intangible assets can have an indefinite useful life -when, based on an analysis of all the relevant factors, it is concluded that there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows for the consolidated entities- or a finite useful life, in all other cases. Intangible assets with indefinite useful lives are not amortized, but rather at the end of each reporting period or whenever there is any indication of impairment the consolidated entities review the remaining useful lives of the assets in order to determine whether they continue to be indefinite and, if this is not the case, to take the appropriate steps. Intangible assets with finite useful lives are amortized over those useful lives using methods similar to those used to depreciate tangible assets. The amortization expense is recognized under "Depreciation and amortization" in the consolidated income statement. The Bank assesses at the end of each period, if there is any indication that the items of intangible assets may present an impairment loss, i.e. an asset that presents the carrying amount higher than the net realizable value. After identifying any reduction in impairment loss, it is adjusted to reach its fair value. Measurement of the recoverable amount of other intangible assets - software is made based on the value in use, as well as the analysis of the discontinuity of the asset in relation to the activities of the Bank. Expenditures for acquisition and development of software are amortized over a maximum period of 5 years. |
Other assets | 2.16 Other assets Other Assets include the balances of all prepayments and accrued income (excluding accrued interest), acquired client list, the net amount of the difference between pension plan obligations and the fair value of the plan assets with a balance on the entity's behalf, when this net amount shall be disclosed in the consolidated financial statements, and the amount of any other assets not included in other items. The Bank uses the value in use of client relationship as a basis for measuring the impairment since it is not reasonably possible to determine the net value of sales, because there is no basis for making a reliable estimate of the value to be obtained by selling the asset in a transaction at cumulative basis, between knowledgeable, willing parties. The value in use of client lists acquired related to the purchase of the "payroll" will be determined individually. An analyses that aims to demonstrate the expectation of generating future economic benefit and the present value of expected cash flows is prepared by the business areas. Quarterly, these analyses are reviewed based on the actual cash flows of each business (value in use), which are compared with the carrying amount, checking whether there is a need to record a loss on non-recoverability. |
Liabilities for insurance contracts | 2.17 Liabilities for insurance contracts The liabilities for insurance contracts are comprised substantially by mathematical provisions for current and future benefits (PMBaC and PMBC). Insurance contracts are contracts under which the Bank accepts a significant risk, other than a financial risk, from a policyholder by agreeing to compensate the beneficiary on the occurrence of an uncertain future event by which the policyholder will be adversely affected. Insurance liabilities are recognized when the contract is entered into and the premiums are charged. Contracts that have been classified as insurance are not reclassified subsequently. The liability is derecognized when the contract expires or is cancelled. All valuation methods used by the subsidiaries are based on the general principle that the carrying amount of the net liability must be sufficient to meet any reasonably foreseeable obligation resulting from the insurance contracts. Investment assumptions are either determined by the local regulator and based on management's future expectations. In the later case, the anticipated future investment yield is set by management, considering the available market information and economic indicators. A significant assumption related to estimated gross profits on variable annuities, is the annual long-term growth rate of the underlying assets. At each financial statement date an assessment is made in order to verify whether the Mathematical provisions are adequate. In the years ended December 31, 2018, 2017 and 2016, as determined by IFRS 4 - Contracts classification and subsequent amendments, the adequacy of the technical provisions constituted were evaluated through Liability Adequacy Test (LAP). At December 31, 2018, the LAT indicated the need for the additional constitution of technical provisions amounted to R$215,754 (12/31/2017 - R$130,307 and 12/31/2016 - R$85,395) for Indemnity Funds for Benefit (FGB) plans. |
Provisions for legal and administrative proceedings, commitments and other provisions | 2.18 Provisions for legal and administrative proceedings, commitments and other provisions Banco Santander and its subsidiaries are involved in lawsuits and administrative proceedings related to tax, labor and civil, in the normal course of their activities. The provisions include legal obligations, lawsuits and administrative proceedings related to tax and social security obligations, whose object is to challenge their legality or constitutionality, regardless of the assessment that the probability of success, the amounts are fully recognized in the financial statements. Provisions are reviewed at each financial statement date and adjusted to reflect the current best estimate and may be fully or partially reversed or reduced when the outflows of resources and obligations relevant to the process are no longer probable, including decay of legal deadlines, among others. Provisions for the lawsuits and administrative proceedings are recorded when their risk of loss is considered probable and the amounts can be reliably measured, based on the nature, complexity and history of lawsuits, the legal opinion of the internal and external advisors, based on the best available information. For those lawsuits for which the risk of loss is possible, are not recorded and the information is disclosed in the financial statements and for the lawsuits for which the risk of loss is remote, no disclosure is required. Contingent assets are not recognized, except when there are guarantees or favorable lawsuits decisions, about which features no longer fit, characterizing the gain as practically certain. Assets with probable success, if any, are only disclosed in the financial statements. On the favorable decisions to Santander, the counterparty has the right, in the event of specific legal requirements, to file a rescission lawsuit within a period determined by current legislation. Rescission lawsuits are considered as new events and will be evaluated for contingent liability purposes if and when they are filed. |
Other liabilities | 2.19 Other liabilities “Other liabilities” includes the balance of all accrued expenses and deferred income, excluding accrued interest, and the amount of any other liabilities not included in other categories. |
Share-based compensation | 2.20 Share-based compensation The Bank has long-term compensation plans with vesting conditions. The main vesting conditions are: (1) service conditions, since it is necessary that the participant continues to be employed by the Bank during the term of the Plan for his rights to vest; (2) performance conditions, since the number of Units that ultimately vest will be determined according to the result of certain performance parameter of the Bank, such as: total Shareholder Return (TSR) and may be reduced in case of failure to achieve the goals of reducing the Return on Risk Adjusted Capital (RORAC), comparison between actual and budget in each year, as determined by the Board of Directors and (3) market conditions, since some parameters are linked to the market price of the Bank´s shares. The Bank measures the fair value of the services rendered by reference to the fair value of the equity instruments granted at the grant date, taking into account the market conditions for each plan when estimating the fair value. Settlement in shares The Bank measures the fair value of the services received by reference to the fair value of the equity instruments granted at the grant date, taking into account the market conditions for each grant when estimating the fair value. In order to recognize the personnel expenses against equity reserves throughout the vesting period, as the services are received, the Bank considers the treatment of service conditions and recognize the amount for the services received during the vesting period based on the best available estimate of the number of equity instruments expected to vest. Semi-annually, the Bank reviews the estimate of the number of equity instruments expected to vest. Settlement in cash For cash-settled share-based compensation (in the form of share appreciation rights), the Bank measures the fair value of services rendered and the corresponding liability incurred, based on the fair value of the share appreciation rights at the grant date and until the liability is settled. The Banks remeasures the fair value of the liability at the end of each reporting period and at the date of settlement, with any changes in fair value recognized in profit or loss for the period. In order to recognize the personnel expenses against a provision in “other liabilities” throughout the vesting period, reflecting the period as the services are received, the Bank bases the total liability on the best estimate of the number of share appreciation rights that will vest at the end of the vesting period and recognizes the amount for the services received during the vesting period based on such best available estimate. Periodically, the Bank reviews such estimate of the number of share appreciation rights that will vest at the end of vesting period. |
Recognition of income and expenses | 2.21 Recognition of income and expenses The most significant criteria used by the Bank to recognize its income and expenses are summarized as follows: i. Interest income, interest expenses and similar items Interest income, interest expenses and similar items are generally recognized on an accrual basis using the effective interest method. Dividends received from other companies are recognized as income when the consolidated entities' right to receive them arises. ii. Commissions, fees and similar items Fees and commission income and expenses are recognized in the income statement using criteria that vary according to their nature (note 35). The main criteria are as follows: • Fee and commission income and expenses relating to financial assets and financial liabilities measured at fair value through profit or loss are recognized when paid; • Those arising from transactions or services that are performed over a period of time are recognized over the life of these transactions or services; and • Those relating to services provided in a single act are recognized when the single act has been performed. iii. Non-financial income and expenses These are recognized for accounting purposes on an accrual basis. iv. Deferred collections and payments These are recognized for accounting purposes at the amount resulting from discounting the expected cash flows at market rates. v. Loan arrangement fees Loan arrangement fees, mainly loan origination and application fees, are accrued and recognized in the income statement over the term of the loan. In the case of loan origination fees, the portion relating to the associated direct costs incurred in the loan arrangement is recognized immediately in the consolidated income statement. |
Guarantees | 2.22 Guarantees v.1) Financial guarantees “Financial guarantees” are defined as contracts whereby an entity undertakes to make specific payments for a third party if the latter does not do so, irrespective of the various legal forms they may have, such as guarantees, irrevocable documentary credits issued or confirmed by the entity, among others. The Bank initially recognizes the commission of the financial guarantees as liability in the consolidated financial statements at fair value, which is generally the present value of the fees, commissions and similar interest receivable from these contracts over their term. Financial guarantees, regardless of the guarantor, type of instrument or other circumstances, are reviewed periodically so as to determine the credit risk to which they are exposed and, if appropriate, to consider whether a provision is required. The credit risk is determined by application of criteria similar to those established for quantifying impairment losses on debt instruments measured at amortized cost. The provisions made for these transactions are recognized in the heading “Provisions - Provisions for contingent liabilities, commitments and other provisions” in the consolidated financial statements (note 23). If a specific provision is required for financial guarantees, the related unearned commissions are recognized in the heading “Financial liabilities at amortized cost - Other financial liabilities” in the consolidated financial statements are reclassified to the appropriate provision. v.2) Guarantees and Credit Risk Mitigation Policy Banco Santander controls the credit risk using the collateral in its operations. Each business unit is responsible for credit risk management and formalizes the use of collateral in its lending policies. Banco Santander uses guarantees in order to increase its ability to recover operations subject to credit risk. The guarantees can be fiduciary, real, legal structures with power mitigation and compensation agreements. The Bank periodically reviews its policy guarantees through technical parameters, normative and also its historical basis, to determine whether the guarantee is legally valid and enforceable. Credit limits are continually monitored and changed in client behavior function. Thus, the potential loss values represent a fraction of the amount available. |
Assets under management and investment and pension funds managed by the Bank | 2.23 Assets under management and investment and pension funds managed by the Bank Assets owned by third parties and managed by the consolidated entities are not presented in the consolidated financial statements. Management fees are included in “Fee and commission income” in the consolidated income statement. Note 44-b contains information on the third-party assets managed by the Bank. The investment funds and pension funds managed by the consolidated entities are not recorded in the consolidated financial statements since the related assets are owned by third parties. The fees and commissions earned in the year for the services rendered by the Bank entities to these funds (asset management and custody services) are recognized in the heading “Fee and commission income” in the consolidated income statement. |
Post-employment benefits | 2.24 Post-employment benefits Post-employment benefit plans include the commitments of the Bank: (i) addition to the benefits of public pension plan; and (ii) healthcare in case of retirement, permanent disability or death for those employees, and their direct beneficiaries. Defined contribution plans Defined contribution plans is the post-employment benefit plan which the Bank, and its subsidiaries, as the sponsoring entity pays fixed contributions into a pension fund, not having a legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all benefits relating to services provided in the current and in previous periods. The contributions made are recognized in the heading "Interest Expense and Similar Charges" in the income statement. Defined benefit plans Defined benefit plan is the post-employment benefit plan which is not a defined contribution plan and is shown in Note 22. For this type of plan, the sponsoring entity's obligation is to provide the benefits agreed with the former employees, assuming the potential actuarial risk that benefits will cost more than expected. For defined benefit plan, the amendment of IAS 19 established fundamental changes in the accounting for and disclosure of employee post-employment benefits such as removing the corridor approach in the accounting for the obligation of the plans, as well as changes in the criteria for recognition of conventional interest of plan assets (valuation based on the discount rate actuarial liability). In addition, there is full recognition in liabilities heading of actuarial losses (actuarial deficit) not recognized previously when they occur, which its counterparty is a heading in the stockholders' equity (Other Comprehensive Income). Main Definitions - The present value of the defined benefit obligation is the present value without any deduction from the plan assets, of expected future payments required to settle the obligation resulting from employee service in the current and past periods. - Deficit or surplus is: (a) the present value of the defined benefit obligation, less (b) the fair value of plan assets. - The sponsoring entity may recognize the plan assets in the financial statements when they meet the following characteristics: (i) the fund assets are sufficient to meet all employee benefit plan or the sponsor obligations; or (ii) the assets are returned to the sponsoring entity in order to reimburse it for employee benefits already paid. - Actuarial gains and losses correspond to changes in the present value of defined benefit obligation resulting from: (a) adjustments by experience (the effects of differences between the actuarial assumptions adopted and what has actually occurred); and (b) effects of changes in actuarial assumptions. - Current service cost is the increase in the present value of the defined benefit obligation resulting from employee service provided in the current period. - The past service cost is the change in present value of defined benefit obligation for employee service provided in prior periods resulting from a change in the plan or reductions in the number of employees covered. Post-employment benefits are recognized in income in the headings "Interest expense and similar Charges" and "Provisions (net)". The defined benefit plans are recorded based on an actuarial study, conducted annually by an external consulting firm, at the end of each year to be effective for the subsequent period. |
Other long-term employee benefits | 2.25 Other long-term employee benefits “Other long-term employee benefits”, defined as obligations to early retirees considered as those who have ceased to render services at the entity but who, without being legally retired, continue to have economic rights relating to the entity until they acquire the legal status of retiree, long-service bonuses, obligations for death of spouse or disability before retirement that depend on the employee's length of service at the entity and other similar items, are treated for accounting purposes, where applicable, as established above for defined benefit post-employment plans, except that all past service costs and actuarial gains and losses are recognized immediately (note 22). |
Termination benefits | 2.26 Termination benefits Termination benefits are recognized when there is a detailed formal plan identifying the basic changes to be made, provided that implementation of the plan has begun, its main features have been publicly announced or objective facts concerning its implementation have been disclosed. |
Income taxes (IRPJ), Social Contribution (CSLL), Social Integration Program (PIS) and Tax for Social Security Financing (COFINS) | 2.27 Income taxes (IRPJ), Social Contribution (CSLL), Social Integration Program (PIS) and Tax for Social Security Financing (COFINS) Income tax is calculated at the rate of 15% plus a surcharge of 10% levied on the profit, after adjustments determined by tax legislation. The social contribution (CSLL) is calculated at the rate of 20% for financial institutions (15% up to August 2015) and 9% for other companies, levied on the profit, after considering the adjustments determined by tax legislation. The CSLL rate for financial institutions, legal persons of private insurance and capitalization was increased from 15% to 20% for the fiscal period between September 1, 2015 and December 31, 2018, pursuant to Law 13,169/2015 (a result of the conversion into law of Provisional Measure 675/2015). The expense for corporate income tax is recognized in the consolidated income statement, except when it results from a transaction recognized directly in equity, in which case the tax effect is also recognized in equity. The current income tax expense is calculated as the sum of the current tax resulting from application of the appropriate tax rate to the taxable profit for the year (net of any deductions allowable for tax purposes), and of the changes in deferred tax assets and liabilities recognized in the consolidated income statement. Tax assets classified as "Current" are amounts of tax to be recovered within the next twelve months. Tax liabilities includes the amount of all tax liabilities (except provisions for taxes), which are broken down into “current” amount payable in respect of the income tax on the taxable profit for the year and other taxes in the next twelve months. Deferred tax assets and liabilities include temporary differences, which are identified as the amounts expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities and their related tax bases, and tax loss and tax credit carry forwards. These amounts are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled. Deferred tax assets are only recognized as temporary differences to the extent that it is considered probable that the consolidated entities will have sufficient future taxable profits against which the deferred tax assets can be utilized, and the deferred tax assets do not arise from the initial recognition (except in a business combination) of other assets and liabilities in a transaction that affects neither taxable profit or accounting profit. Other deferred tax assets (tax loss and tax credit carry forwards) are only recognized if it is considered probable that the consolidated entities will have sufficient future taxable profits against which they can be utilized. Due to the change in social contribution tax rate, the group companies made the remeasurement of tax credit assets and deferred liabilities at the rates applicable to the period in which estimates the realization of assets and settlement of liabilities. Income and expenses recognized directly in stockholders equity are accounted as temporary differences. The deferred tax assets and liabilities recognized are reassessed at each financial statements date in order to ascertain whether they still exist, and the appropriate adjustments are made on the basis of the findings of the analyses performed. Under the current regulation, the expected realization of tax credits is based on the Bank's projections of future results and on technical study, as shown in Note 24. PIS (Social Integration Program) and COFINS (Tax for Social Security Financing) have been computed at a combined rate of 4.65% on certain gross revenues and expenses. Financial institutions may deduct financial expenses in determining the PIS/COFINS tax basis. PIS and COFINS are considered a profit-base component (net basis of certain revenues and expenses), therefore and accordingly to IAS 12 it is recorded as income taxes. |
Consolidated cash flow statements | 2.28 Consolidated cash flow statements The following terms are used in the consolidated cash flow statements with the following meanings: • Cash flows: inflows and outflows of cash and cash equivalents, which are short-term, highly liquid investments that are subject to an insignificant risk of changes in value and original maturity of three months or less. • Operating activities: the primary revenue-generating activities of credit institutions and other activities that are not investing or financing activities. • Investing activities: the acquisition and disposal of long-term assets and other investments not included in cash and cash equivalents. • Financing activities: activities that result in changes in the size and composition of the equity and liabilities that are not operating activities. In preparing the consolidated cash flows statement, the high liquidity investments with insignificant risk of changes in their values were classified as "Cash and cash equivalents". The Bank classifies as cash and cash equivalents balances recorded in the headings "Cash and balance with the Brazilian Central Bank" and "Loans and amounts due from credit institutions" in the consolidated financial statements, except restricted resources and long-term transactions. The interest paid and received correspond basically to operating activities of Banco Santander. Bank's Management began segregating the "Effects of Exchange Rates on Assets and Liabilities". Consequently, the corresponding figures of the Cash Flow Statements were reclassified for the years ended December 31, 16 with the objective of better presentation of this accounting item. |
Introduction, basis of presen_2
Introduction, basis of presentation of the consolidated financial statements and other information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Introduction, basis of presentation of the consolidated financial statements and other information (Tables) [Abstract] | |
Conciliation of stockholders' equity resulting from the initial adoption of IFRS 9 | The conciliation of stockholders' equity resulting from the initial adoption of IFRS 9 is as follows: Equity conciliation Equity before IFRS 9 adjustments - 12/31/2017 87,087,601 Allowance for loan losses (2,149,051) Provision for contingent liabilities (674,513) Re-measurement of assets arising from the new categories 17,806 Others 237,867 Deferred tax 1,026,066 Equity after IFRS 9 adjustments - 1/01/2018 85,545,776 |
Provision for losses by category of financial instrument | The following tables present the reconciliations of the opening and closing balances of the provision for losses by category of financial instrument. The terms expected credit losses in 12 months, expected credit losses during the useful life and impairment losses are explained in the accounting practices note. The comparative values for 12/31/2017 represent a provision for loan losses and reflect the measurement basis in accordance with IAS 39. R$ millions Total Allowance for loan losses - Balance 12/31/2017 18,261,638 Allowance for guarantees - Balance 12/31/2017 312,373 IAS 39 Balance at 12/31/2017 18,574,011 Initial adoption effect of IFRS 9 (Note 1.2i) 2,823,564 IFRS 9 Balance at 01/01/2018 21,397,575 |
IFRS 9 adoption first adoption effects on the Financial Assets and Liabilities (In R$ Millions) - Assets | The table below shows the financial assets classified in accordance with IAS 39 and the new measurement categories in accordance with IFRS 9. IFRS 9 adoption first adoption effects on the Financial Assets and Liabilities (In R$ Millions) Original classification in accordance with IAS 39 Balance 12/31/2017 Reclassifications Remeasurement Balance New classification in accordance with IFRS 9 Financial Assets IAS 39 Loans and receivables 355,246,574 354,317,416 - 354,317,416 Measured at Amortized cost 492,429 5,197 497,626 Measured Mandatorily Measured At Fair Value Through Profit Or Loss 436,729 (7,179) 429,550 Measured at Fair value through other comprehensive income Available-for-sale 85,823,384 4,762,234 3,791 4,766,025 Measured at Amortized cost 79,954,513 - 79,954,513 Measured at Fair value through other comprehensive income 1,106,637 15,997 1,122,634 Measured at Fair value through profit and loss Held to maturity investments 10,214,454 10,214,454 - 10,214,454 Measured at Amortized cost Held for trading 86,271,097 86,271,097 - 86,271,097 Measured at Fair value through profit and loss Held For Trading Other financial assets measured at fair value through profit and loss 1,692,057 1,692,057 - 1,692,057 Measured at Fair value through profit and loss Total (1) 539,247,566 539,247,566 17,806 539,265,372 (1) Does not include Provision for Losses on contingent liabilities and commitments. |
IFRS 9 adoption first adoption effects on the Financial Assets and Liabilities (In R$ Millions) - Liabilities | IFRS 9 adoption first adoption effects on the Financial Assets and Liabilities (In R$ Millions) Original classification in accordance with IAS 39 Balance 12/31/2017 Reclassifications Remeasurement Balance New classification in accordance with IFRS 9 Financial liabilities IAS 39 Held for trading 49,322,546 - - 49,322,546 Measured At Fair Value Through Profit Or Loss Held For Trading Amortized cost 478,880,704 - - 478,880,704 Measured at Amortized cost Total 528,203,250 - - 528,203,250 |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies (Tables) [Abstract] | |
Financial assets and liabilities subject to ofsetting | The following table provides details of financial assets and liabilities subject to offsetting at December 31, 2018, 2017 and 2016: Thousand of reais 2018 Financial assets, gross Financial assets Financial assets Assets: Derivatives 18,667,611 (304,165) 18,363,446 Repurchase agreements 44,836,491 - 44,836,491 Financial liabilities, gross Financial liabilities Financial liabilities Liabilities: Derivatives 18,771,000 (304,165) 18,466,835 Repurchase agreements 101,647,013 - 101,647,013 Thousand of reais 2017 Financial assets, gross Financial assets Financial assets Assets: Derivatives 17,262,888 - 17,262,888 Repurchase agreements 34,505,671 - 34,505,671 Financial liabilities, gross Financial liabilities Financial liabilities Liabilities: Derivatives 16,677,486 - 16,677,486 Repurchase agreements 97,421,579 - 97,421,579 Thousand of reais 2016 Financial assets, gross Financial assets Financial assets Assets: Derivatives 24,702,973 - 24,702,973 Repurchase agreements 47,528,393 - 47,528,393 Financial liabilities, gross Financial liabilities Financial liabilities Liabilities: Derivatives 20,236,615 - 20,236,615 Repurchase agreements 129,817,727 - 129,817,727 |
Tangible asset depreciation charge | The tangible asset depreciation charge is recognized in the consolidated income statement and is calculated basically using the following depreciation rates (based on the average years of estimated useful life of the various assets): Annual Buildings for own use 4% Furniture 10% Fixtures 10% Office and IT equipment 20% Leasehold improvements 10% or up to contractual maturity |
Basis of consolidation (Tables)
Basis of consolidation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Basis of consolidation (Tables) [Abstract] | |
Controlled entities and investment funds included in the consolidated financial statements | Below are highlighted the controlled entities and investment funds included in the consolidated financial statements of Banco Santander. Similar information regarding companies accounted by the equity method by the Bank is provided in Note 11. Directly and Indirectly controlled by Banco Santander (Brasil) S.A. Participation % Activity Consolidated Banco Bandepe S.A. (1) Bank 100.00% Santander Leasing S.A. Arrendamento Mercantil (Santander Leasing) Leasing - 99.99% Aymoré Crédito, Financiamento e Investimento S.A. (Aymoré CFI) Financial - 100.00% Santander Brasil Administradora de Consórcio Ltda. (Santander Brasil Consórcio) Buying club - 100.00% Atual Serviços de Recuperação de Créditos e Meios Digitais S.A. (formerly named as Atual Companhia Securitizadora de Créditos Financeiros) (Atual) (2) Credit recovery services - 100.00% Santander Corretora de Câmbio e Valores Mobiliários S.A. (Santander CCVM) Broker - 100.00% Santander Corretora de Seguros, Investimentos e Serviços S.A. (Santander Corretora de Seguros) (formerly named as Santander Participações S.A.) (3)(4)(5) Other activities - 100.00% Getnet Adquirência e Serviços para Meios de Pagamento S.A. (Getnet) Payment Institution - 88.50% Sancap Investimentos e Participações S.A. (Sancap) Holding - 100.00% Santander Brasil Establecimiento Financiero de Crédito S.A. (EFC) Financial - 100.00% Santander Holding Imobiliária S.A. (formerly named Webcasas S.A.) (10) Holding - 100.00% Santander Brasil Tecnologia S.A. (formerly named Produban Serviços de Informática S.A.) (21) Technology 100.00% Rojo Entretenimento S.A. (20) Other Activities 94.60% BEN Benefícios e Serviços S.A (9) Other Activities - 100.00% Esfera Fidelidade S.A. (22) Other Activities - 100.00% Return Capital Serviços de Recuperação de Créditos e Meios Digitais S.A. (formerly named Ipanema Empreendimentos e Participações S.A.) (11) (12) Credit Management and Recovery Management 70.00% Return Gestão de Recursos S.A. (formerly named Gestora de Investimentos Ipanema S.A.) (13) Resource Manager - 100.00% Auttar HUT Processamento de Dados Ltda. (Auttar HUT) Other Activities - 100.00% Integry Tecnologia e Serviços A.H.U Ltda. (Integry Tecnologia) Other Activities - 100.00% Toque Fale Serviços de Telemarketing Ltda. (Toque Fale) Other Activities - 100.00% Controlled by Sancap Santander Capitalização S.A. (Santander Capitalização) Savings and annuities - 100.00% Evidence Previdência S.A. Social Securities - 100.00% Controlled by Aymoré CFI Super Pagamentos e Administração de Meios Eletrônicos Ltda. (Super Pagamentos) (14) (8) Payment Institution - 100.00% Banco Olé Bonsucesso Consignado S.A. (Olé Consignado) (15) Bank - 60.00% Banco PSA Finance Brasil S.A. Bank - 50.00% Controlled by Olé Consignado BPV Promotora de Vendas e Cobrança Ltda. Other Activities - 100.00% Olé Tecnologia Ltda. Other Activities - 100.00% Controlled by Santander Leasing Si Distribuidora de Títulos e Valores Mobiliários S.A. (formerly named Santander Finance Arrendamento Mercantil) (6) (7) Leasing 100.00% Consolidated Investment Funds Activity Participation % Santander FIC FI Contract I Referenciado DI Investment Fund (a) Santander Fundo de Investimento Unix Multimercado Crédito Privado Investment Fund (a) Santander Fundo de Investimento Diamantina Multimercado Crédito Privado de Investimento no Exterior Investment Fund (a) Santander Fundo de Investimento Amazonas Multimercado Crédito Privado de Investimento no Exterior Investment Fund (a) Santander Fundo de Investimento SBAC Referenciado DI Crédito Privado Investment Fund (a) Santander Fundo de Investimento Guarujá Multimercado Crédito Privado de Investimento no Exterior Investment Fund (a) Santander Fundo de Investimento Financial Curto Prazo Investment Fund (a) Santander Fundo de Investimento Capitalization Renda Fixa Investment Fund (a) Santander Paraty QIF PLC (16) Investment Fund (a) Santander FI Hedge Strategies Fund (Santander FI Hedge Strategies) (16) Investment Fund (a) Prime 16 - Fundo de Investimento Imobiliário (formerly named BRL V - Fundo de Investimento Imobiliário - FII) (17) Real Estate Investment Fund (a) Fundo de Investimento em Direitos Creditórios Multisegmentos NPL Ipanema VI - Não Padronizado (Fundo Investimento Ipanema NPL VI) (18) Investment Fund (a) Fundo de Investimento em Direitos Creditórios Multisegmentos NPL Ipanema VI - Não Padronizado (Fundo Investimento Ipanema NPL V) (19) Investment Fund (a) Santander Hermes Multimercado Crédito Privado Infraestrutura Fundo de Investimentos (23) Investment Fund (a) |
Cash and balances with the Br_2
Cash and balances with the Brazilian Central Bank (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash and balances with the Brazilian Central Bank (Tables) [Abstract] | |
Cash and balances with the Brazilian Central Bank | 4. Cash and balances with the Brazilian Central Bank Thousand of reais 2018 2017 2016 Cash and cash equivalents 19,463,587 4,661,348 3,316,800 of which: Cash 4,235,096 4,661,348 3,316,800 Cash and Foreign currency application abroad 15,228,491 15,980,973 11,366,935 Central Bank compulsory deposits (2) (3) 12,252,758 13,482,432 11,600,834 Total 31,716,345 34,124,753 26,284,569 (1) Includes securities purchased under agreements to resell, long term and not considered cash equivalents. (2) Central Bank compulsory deposits relate to a minimum balance that financial institutions are required to maintain with Bacen based on a percentage of deposits received from third parties, considered as restricted use of resources. (3) In 2018, the balances related to the compulsory deposits of time deposits were reclassified to Loans and amounts due from credit institutions for a better presentation and, consequently, the respective comparative balances were also reclassified. |
Loans and amounts due from cr_2
Loans and amounts due from credit institutions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loans and amounts due from credit institutions (Tables) [Abstract] | |
Balances of Loans and amounts due from credit institutions | The breakdown, by classification, type and currency, of the balances of “Loans and amounts due from credit institutions” in the consolidated financial statements is as follows: Thousand of reais 2018 2017 2016 Classification: Loans and receivables - 65,209,902 65,711,001 Financial Assets Measured At Amortized Cost 79,607,001 - - Of which: Loans and amounts due from credit institutions, gross 79,620,562 65,278,917 27,963,914 Impairment losses (note 9.c) (13,561) (69,015) (201,441) Loans and amounts due from credit institutions, net 79,607,001 65,209,902 65,711,001 Loans and amounts due from credit institutions, gross 79,620,562 65,278,917 65,912,442 Thousand of reais 2018 2017 2016 Type: Time deposits (2) (4) 64,547,525 53,128,272 53,213,602 Reverse repurchase agreements (1) (2) 3,728,963 270,735 848,096 Escrow deposits 10,182,936 10,136,079 9,836,300 Other accounts (3) 1,161,138 1,743,831 2,014,444 Total 79,620,562 65,278,917 65,912,442 (1) Guaranteed by debt instruments. (2) Includes R$12,793 of short-term transactions with low risk of change in their value, considered cash equivalents. (3) As per the IFRS9 adoption the balances of the Loan and Pre Payment Export products were reclassified to Financial Assets Measured at Fair Value through Profit and Loss at the amount of R$611,088. (4) In 2018, the balances related to the compulsory deposits on time deposits were reclassified from |
Loans and amounts due from credit institutions - Currency | Thousand of reais 2018 2017 2016 Currency: Brazilian Real 79,166,257 49,914,691 63,369,993 US dollar 422,247 15,044,088 1,658,980 Euro 32,058 307,633 779,314 Pound sterling - 3,585 51,972 Other currencies - 8,920 52,183 Total 79,620,562 65,278,917 65,912,442 |
Cash equivalents | Thousand of reais 2018 2017 2016 Cash equivalents: Short-term transactions and low risk of change in its value 5,821,573 2,028,581 3,445,846 (1) Collateralized by debt instruments. |
Debt instruments (Tables)
Debt instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt instruments (Tables) [Abstract] | |
Balances of Debt instruments | The breakdown, by classification, type and currency, of the balances of “Debt instruments” is as follows: Thousand of reais 2018 2017 2016 Classification: Financial assets held for trading (1) - 34,879,681 59,994,946 Financial Assets Measured At Fair Value Through Profit Or Loss 3,171,746 - - Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading 50,066,469 - - Other Financial assets designated at fair value through profit or loss - 1,658,689 1,668,749 Financial assets - available-for-sale - 84,716,747 55,829,572 Financial Assets Measured At Fair Value Through Other Comprehensive Income (1) 85,395,691 - - Investments Held-to-Maturity - 10,214,454 10,048,761 Loans and receivables - 17,616,515 16,283,259 Financial Assets Measured At Amortized Cost 36,799,509 - - Of which: Debt Instruments 39,513,460 20,400,082 17,838,162 Impairment losses (2,713,951) (2,783,567) (1,554,903) Total 175,433,415 149,086,086 143,825,287 Type: Government securities - Brazil (2) 116,531,146 122,362,389 122,971,854 Debentures and Promissory notes 10,555,952 12,097,230 12,922,763 Other debt securities 48,346,317 14,626,467 7,930,670 Total 175,433,415 149,086,086 143,825,287 (1) On December 31, 2018, management decided to change the classification of Financial Treasury Bills - LFT, of the securities portfolio of Getnet Adquirência e Serviços para Meios de Pagamento S.A. (Getnet SA), Banco Bandepe SA and Santander Corretora de Cambio e Valores Mobiliários S.A. (Santander CCVM). The securities were transferred from the Trading to Available for Sale category, in the amounts of R$739,430, R$14,099 and R$375,488, respectively. Such transfers did not impact the amounts of Consolidated and also did not generate effect on the result. The change in the category occurred due to the revaluation of the recent trading history of these assets. (2) Includes, substantially, National Treasury Bills (LTN), Treasury Bills (LFT) e National Treasury Notes (NTN-A, NTN-B, NTN-C e NTN-F |
Balances of Debt instruments - Currency | Thousand of reais 2018 2017 2016 Currency: Brazilian Real 166,743,410 137,420,134 134,037,665 US dollar 8,690,005 11,665,952 9,107,513 Euro - - 680,109 Total 175,433,415 149,086,086 143,825,287 |
Debt Instruments linked to | Thousand of reais 2018 2017 2016 Debt Instruments linked to: Repo Operations 90,909,891 77,781,728 71,810,310 Banco Central Mandatory Deposits 1,449,207 2,305,158 3,044,896 Operations guarantees in B3 S.A. - Brasil, Bolsa, Balcão (B3 S.A.) 17,985,160 6,273,561 6,221,046 Associated to judiciary deposits and other guarantees 2,078,042 4,743,298 5,358,604 Total 112,422,300 91,103,745 86,434,856 |
Equity instruments (Tables)
Equity instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity instruments (Tables) [Abstract] | |
Breakdown, by classification and type Equity instruments | The breakdown, by classification and type, of the balances of “Equity instruments” is as follows: Thousand of reais 2018 2017 2016 Classification: Financial assets held for trading - 489,770 398,461 Financial Assets Measured At Fair Value Through Profit or Loss Held For Trading 766,333 - - Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit or Loss 298,297 - - Other Financial assets designated at fair value through profit or loss - 33,368 42,455 Financial assets available-for-sale - 1,106,637 1,985,473 Financial Assets Measured At Fair Value Through Other Comprehensive Income 40,986 - - Total 1,105,616 1,629,775 2,426,389 Type: Shares of Brazilian companies 783,475 389,113 1,185,653 Shares of foreign companies 1,933 5,347 3,588 Investment funds (1) 320,208 1,235,315 1,237,148 Total 1,105,616 1,629,775 2,426,389 (1) Composed mainly by investment on fixed income, public and private securities. |
Equity instruments - Financial assets measured at fair value through profit or loss held for trading | The changes in the balance of “Equity instruments - Financial assets measured at fair value through profit or loss held for trading” were as follows: Thousand of reais 2018 2017 2016 Balance at beginning of year 489,770 398,461 404,973 Net additions (disposals) 277,462 90,696 (7,125) Valuation adjustments (899) 613 613 Balance at end of year 766,333 489,770 398,461 |
Equity instruments - Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss | The changes in the balance of “Equity instruments - Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss” were as follows: Thousand of reais 2018 2017 2016 Balance at beginning of year 33,368 42,455 573,664 Net additions (disposals) 143,291 (1,586) (531,209) Valuation adjustments 121,638 (7,501) - Balance at end of year 298,297 33,368 42,455 |
Equity instruments - Financial Assets Measured At Fair Value Through Other Comprehensive Income | The changes in the balance of “Equity instruments - Financial Assets Measured At Fair Value Through Other Comprehensive Income” were as follows: Thousand of reais 2018 2017 2016 Balance at beginning of year 1,106,637 1,985,473 1,162,332 Net additions (disposals) (1,034,219) (830,395) 852,820 Valuation adjustments (31,432) (48,441) (29,679) Balance at end of year 40,986 1,106,637 1,985,473 |
Derivative financial instrume_2
Derivative financial instruments and Short positions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative financial instruments and Short positions (Tables) [Abstract] | |
Portfolio Summary of Trading Derivative | Portfolio Summary of Trading Derivative and Used as Hedge 2018 2017 2016 Assets Swap Differentials Receivable (1) 14,640,289 15,781,207 15,321,646 Option Premiums to Exercise 716,936 553,217 935,520 Forward Contracts and Others 3,006,221 928,464 8,445,807 Total 18,363,446 17,262,888 24,702,973 Liabilities Swap Differentials Payable (1) 15,952,283 14,643,016 12,267,819 Option Premiums Launched 563,787 385,183 1,166,002 Forward Contracts and Others 1,950,765 1,649,287 6,802,794 Total 18,466,835 16,677,486 20,236,615 (1) In 2016, includes swaption (swap + option) and embedded derivatives. |
Summary by Category | Summary by Category Trading 2018 2017 2016 Notional (1) Fair Value Notional (1) Fair Value Notional (1) Fair Value Swap (1,431,110) 1,108,760 3,142,125 Assets 177,233,869 44,487,274 202,081,214 57,294,179 196,887,188 24,311,485 CDI (Interbank Deposit Rates) 36,135,015 24,267,591 33,289,522 22,409,496 44,868,680 22,759,822 Fixed Interest Rate - Real 47,968,999 - 95,700,715 - 126,300,261 - Indexed to Price and Interest Rates 2,581,215 - 5,592,892 - 9,225,789 - Foreign Currency 90,495,240 20,219,683 67,493,635 34,884,683 16,492,458 1,551,663 Others 53,400 - 4,450 - - - Liabilities 176,385,349 (45,918,384) 199,709,355 (56,185,419) 184,350,947 (21,169,360) CDI (Interbank Deposit Rates) 11,801,600 - 16,664,176 - 23,178,722 - Fixed Interest Rate - Real 88,317,044 (23,075,374) 114,055,076 (21,687,884) 133,185,717 (17,414,147) Indexed to Price and Interest Rates 24,308,601 (21,775,017) 40,146,968 (34,107,210) 12,767,212 (3,518,297) Foreign Currency 50,748,008 - 28,420,467 - 15,049,776 (38,836) Others 1,210,096 (1,067,993) 422,668 (390,325) 169,520 (198,080) Options 335,073,080 153,149 190,061,609 168,034 175,841,405 (230,482) Purchased Position 149,076,796 716,936 87,503,833 553,217 83,883,966 935,520 Call Option - US Dollar 14,518,058 239,079 9,369,821 169,542 12,693,748 181,463 Put Option - US Dollar 8,893,620 90,736 5,130,392 42,389 3,788,161 392,048 Call Option - Other 3,118,344 131,297 1,953,481 59,220 20,115,932 62,517 Interbank Market 639,488 4,537 1,185,310 389 17,391,500 7,062 Others (2) 2,478,856 126,760 768,171 58,831 2,724,432 55,455 Put Option - Other 122,546,774 255,824 71,050,139 282,066 47,286,125 299,492 Interbank Market 121,782,816 217,726 70,295,282 257,943 46,106,600 18,029 Others (2) 763,958 38,098 754,857 24,123 1,179,525 281,463 Sold Position 185,996,284 (563,787) 102,557,776 (385,183) 91,957,439 (1,166,002) Call Option - US Dollar 7,615,856 (101,034) 5,595,163 (117,059) 4,314,988 (141,172) Put Option - US Dollar 12,160,912 (169,431) 5,919,598 (77,145) 7,390,733 (952,407) Call Option - Other 31,679,919 (66,002) 19,880,180 (35,961) 30,441,646 (46,940) Interbank Market 29,609,298 (13,195) 19,151,110 (515) 27,597,764 (4,087) Others (2) 2,070,621 (52,807) 729,070 (35,446) 2,843,882 (42,853) Put Option - Other 134,539,597 (227,320) 71,162,835 (155,018) 49,810,072 (25,483) Interbank Market 133,703,672 (179,841) 70,494,622 (126,743) 49,245,495 (5,793) Others (2) 835,925 (47,479) 668,213 (28,275) 564,577 (19,690) Futures Contracts 289,508,200 - 161,725,596 - 104,651,180 - Purchased Position 86,203,734 - 54,806,022 - 40,396,456 - Exchange Coupon (DDI) 20,590,068 - 9,616,936 - 14,473,180 - Interest Rates (DI1 and DIA) 32,690,685 - 26,456,303 - 23,756,523 - Foreign Currency 32,456,813 - 16,733,437 - 1,393,538 - Indexes (3) 466,168 - 1,780,311 - 195,160 - Others - - 219,035 - 578,055 - Sold Position 203,304,466 - 106,919,574 - 64,254,724 - Exchange Coupon (DDI) 146,948,795 - 55,016,928 - 15,048,490 - Interest Rates (DI1 and DIA) 54,160,203 - 51,135,994 - 29,047,678 - Foreign Currency 1,992,574 - 745,849 - 17,384,256 - Indexes (3) 202,894 - 20,803 - 185,506 - Treasury Bonds/Notes - - - - 2,588,794 - Forward Contracts and Others 90,910,841 1,055,456 47,823,561 (720,823) 50,853,154 1,643,013 Purchased Commitment 38,666,269 1,303,561 23,506,096 647,376 20,864,170 3,386,347 Currencies 38,095,625 1,250,706 21,525,220 618,007 19,951,984 3,391,275 Others 570,644 52,855 1,980,876 29,369 912,186 (4,928) Sold Commitment 52,244,572 (248,105) 24,317,465 (1,368,199) 29,988,984 (1,743,334) Currencies 51,958,529 (252,160) 22,096,104 (1,364,617) 29,911,406 (1,826,965) Others 286,043 4,055 2,221,361 (3,582) 77,578 83,631 (1) Nominal value of updated contracts. (2) Includes options of index, mainly being options involving US treasury, shares and stock indexes. (3) Includes Bovespa and S&P index. |
Derivatives Financial Instruments by Counterparty | a.2) Derivatives Financial Instruments by Counterparty Notional 2018 Related Financial Customers Parties Institutions (1) Total "Swap" 34,296,821 32,669,900 110,267,148 177,233,869 Options 14,636,017 1,086,323 319,350,740 335,073,080 Futures Contracts - - 289,508,200 289,508,200 Forward Contracts and Others 39,024,978 48,641,894 3,243,969 90,910,841 (1) Includes trades with B3 S.A. and other securities and commodities exchanges. Notional 2017 2016 Related Financial Customers Parties Institutions (1) Total Total "Swap" 32,912,721 19,599,395 149,569,098 202,081,214 196,887,188 Options 11,263,513 1,240,309 177,557,787 190,061,609 175,841,405 Futures Contracts - - 161,725,596 161,725,596 104,651,180 Forward Contracts and Others 25,470,287 18,816,991 3,536,283 47,823,561 50,853,154 |
Derivatives Financial Instruments by Maturity | a.3) Derivatives Financial Instruments by Maturity Notional 2018 Up to From 3 to Over 3 Months 12 Months 12 Months Total "Swap" 12,347,864 70,975,477 93,910,528 177,233,869 Options 63,376,042 220,982,952 50,714,086 335,073,080 Futures Contracts 159,221,909 67,578,078 62,708,213 289,508,200 Forward Contracts and Others 40,186,310 31,255,384 19,469,147 90,910,841 Notional 2017 2016 Up to From 3 to Over 3 Months 12 Months 12 Months Total Total "Swap" 20,705,247 51,021,102 130,354,865 202,081,214 196,887,188 Options 46,139,545 89,403,700 54,518,364 190,061,609 175,841,405 Futures Contracts 65,489,476 55,490,159 40,745,961 161,725,596 104,651,180 Forward Contracts and Others 25,015,557 14,250,495 8,557,509 47,823,561 50,853,154 |
Derivatives by Market Trading | a.4) Derivatives by Market Trading Notional Stock Exchange (1) Over the Counter 2018 Total "Swap" 39,880,578 137,353,291 177,233,869 Options 307,644,530 27,428,550 335,073,080 Futures Contracts 289,508,200 - 289,508,200 Forward Contracts and Others 323,413 90,587,428 90,910,841 (1) Includes trades with B3 S.A. Notional Stock Exchange (1) Over the Counter 2017 2016 Cetip Total Total "Swap" - 67,112,505 134,968,709 202,081,214 196,887,188 Options - 172,144,700 17,916,909 190,061,609 175,841,405 Futures Contracts - 161,725,596 - 161,725,596 104,651,180 Forward Contracts and Others - 395,212 47,428,349 47,823,561 50,853,154 (1) Includes trades with B3 S.A. |
Composition of the Credit Derivatives portfolio shown by its reference value and effect in the calculation of Required Stockholders' Equity | Below, the composition of the Credit Derivatives portfolio shown by its reference value and effect in the calculation of Required Stockholders' Equity. 2018 Nominal Value Nominal Value Retained Risk Transferred Risk - Total Rate of Return Swap Credit Swap Credit Swaps 1,959,128 416,541 Total 1,959,128 416,541 |
During the period, there was no occurrence of credit event related to the events generated by the contracts | During the period, there was no occurrence of credit event related to the events generated by the contracts. 2018 Over Maximum Potential for Future Payments - Gross 12 Months Total Per Instrument CDS 1,959,128 1,959,128 Total 1,959,128 1,959,128 Per Risk Classification Below Investment Grade 1,959,128 1,959,128 Total 1,959,128 1,959,128 Per Reference Entity Brazilian Government 1,959,128 1,959,128 Total 1,959,128 1,959,128 |
Attributable to the type of risk being hedged | In fair value hedges, gains or losses, both on hedging instruments and hedged items (attributable to the type of risk being hedged) are recognized directly in the consolidated statement of income. 2018 2017 2016 Hedge Structure Effective Portion Accumulated Portion Ineffective Effective Portion Accumulated Portion Ineffective Effective Portion Accumulated Portion Ineffective Fair Value Hedge Brazilian Treasury Bonds (LTN, NTN-F) (1,381,156) - (388,446) - - - Eurobonds - - - - 13,163 - Bonds (LEA) (191,472) - (1,200) - - - Resolution 2770 689 - 304 - - - Trade Finance Off (58,020) - (57,386) - 20,471 - Total (1,629,959) - (446,728) - 33,634 - |
Hedge Instruments | 2018 2017 2016 Adjustment Adjustment Adjustment to Market Fair Value to Market Fair Value to Market Fair Value Hedge Instruments Swap Contracts (118,807) (98,020) (95,672) (130,683) (26,703) (136,467) Assets 56,633 4,398,851 12,954 3,005,666 11,486 1,046,012 CDI (Interbank Deposit Rates) (5) (8) (1,057) 1,722,515 (357) 1,818,366 - - Indexed to Foreign Currency - Pre Dollar (1) - - 320 8,742 1,103 17,678 Indexed to Foreign Currency - USD/BRL - Dollar (2)(3) (4) 24,411 2,161,661 (23,585) 691,872 (8,957) 744,260 Indexed to Foreign Currency - Euro (6)(7) 33,279 514,675 36,576 486,686 19,340 284,074 Liabilities (175,440) (4,496,871) (108,626) (3,136,349) (38,189) (1,182,479) Indexed to Foreign Currency - US Dollar (6) (16,325) (301,011) (20,109) (261,915) (14,958) (323,197) Indexed to Foreign Currency - Pre Dollar (5) (10,030) (201,819) (16,303) (225,857) (1,103) (17,676) CDI (Interbank Deposit Rates) (1)(2) (63,971) (1,739,553) (21,380) (474,398) (18,395) (804,059) Fixed Interest Rate - Real (3) (8) (43,801) (1,701,759) 22 (1,640,708) (3,733) (37,547) Indexed to Foreign Currency - Colombian Peso (7) (5,197) (195,671) (13,863) (219,392) - - Indexed to Foreign Currency - Pre Euro (4) (36,116) (357,058) (36,993) (314,079) - - Object of Hedge Assets 84,343 4,334,737 77,623 3,126,828 23,165 693,132 Loans and Receivables 89,935 1,840,614 79,496 1,382,326 15,287 546,740 Indexed to Foreign Currency - US Dollar (6) 1,315 299,403 4,319 288,420 4,809 323,780 Indexed to Foreign Currency - Pre Dollar (5) 10,019 200,490 16,416 224,943 - - CDI (Interbank Deposit Rates) (2) 40,150 766,399 16,401 352,071 10,478 222,960 Fixed Interest Rate - Real (3) 1,533 33,063 3,900 21,077 - - Indexed to Foreign Currency - Colombian Peso (7) 64 190,558 (2,898) 173,990 - - Indexed to Foreign Currency - Pre Euro (4) 36,854 350,701 41,358 321,825 - - Debt instruments (5,592) 2,494,123 (1,873) 1,744,502 7,878 146,392 Promissory Notes - NP 31,518 852,029 445 125,973 7,878 146,392 CDI (Interbank Deposit Rates) (1)(2) 28,046 811,906 354 119,892 2,775 108,845 Fixed Interest Rate - Real (3) 3,472 40,123 91 6,082 5,103 37,547 National Treasury Notes - NTN F (8) (37,110) 1,642,094 (2,318) 1,618,529 - - Liabilities - - - - 12,830 (803,929) Foreign Borrowings - - - - 12,830 (803,929) Indexed to Foreign Currency - US Dollar (2) - - - - 12,830 (803,929) |
Hedge Instruments - Reference Value | 2018 2017 Hedge Instruments Swap Contracts 34,513,380 22,206,615 Interest Rate (DI1 and DIA) 33,861,121 22,206,615 Indexed to Price - IPCA (DAP) 652,259 - |
Object of Hedge | 2018 2017 Adjustment Adjustment Object of Hedge to Market Fair Value to Market Fair Value Assets 968,329 36,985,493 364,434 24,779,831 Securities - Available for Sale Government Securities 937,017 36,377,478 364,434 24,779,831 National Treasury Bills - LTN 357,330 24,650,965 219,611 13,893,932 National Treasury Notes - NTN F 517,063 10,510,482 144,823 10,885,899 Private Securities 31,312 608,015 - - Debentures 31,312 608,015 - - (1) Passive instruments whose hedged items are securities represented by promissory notes indexed in Certificates of Interbank Deposits (CDI) with market value of R$811,906 (12/31/2017 - R$109,538). (2) These are passive instruments whose hedge items are credit operations and securities represented by promissory notes indexed in interbank deposit certificates (CDI), with market value of credit operations of R$766,399 (12/31/2017 - R$352,071) and in December 31, 2017, promissory notes in the amount of R$10,354. (3) These are passive instruments whose hedged items are securities and securities represented by promissory notes indexed to Real interest rates with market value of R$40,124 (12/31/2017 - R$6,082 and 12/31/2016 - R$37,547) and credit operations in the amount of R$33,063 (12/31/2017 - R$21,077). (4) These are passive instruments whose hedged items are credit operations indexed in foreign currency - euro at the market value of R$350,701 (12/31/2017 - R$321,825). (5) These are passive instruments whose hedged items are credit operations indexed in foreign currency - US dollar in the market value of R$200,491 (12/31/2017 - R$224,943). (6) These are passive instruments whose hedge items are credit operations indexed in foreign currency - US dollar with a market value of R$299,404 (12/31/2017 - R$288,420). |
Hedge Structure - Cash Flow | In cash flow hedges, the effective portion of changes in the value of the hedging instrument is temporarily recognized in equity under “Other comprehensive income - cash flow hedges” (Note 26) until the expected transactions occur, when this portion is then recognized in the consolidated income statement. However, if the expected transactions result in the recognition of non-financial assets or liabilities, this portfolio will be included in the cost of financial assets or liabilities. The non-effective portion of the change in the value of foreign exchange hedging derivatives is recognized directly in the consolidated income statement. And the non-effective portion of gains and losses on cash flow hedging instruments in a foreign operation is recognized directly in “Gains (losses) with (net) financial assets and liabilities” in the consolidated income statement. 2018 2017 2016 Hedge Structure Effective Portion Accumulated Portion Ineffective Effective Portion Accumulated Portion Ineffective Effective Portion Accumulated Portion Ineffective Cash Flow Hedge Eurobonds (8,925) - (25,576) - (20,535) - - Trade Finance Off (16,453) (3,981) (94,896) 9,267 - - Government Securities (LFT) 331,922 - 129,995 - - - Bank Deposit Certificate - CDB 1,225 - 129,995 - - - Loans and Receivables - - - - 174,956 - Total 307,769 (3,981) 139,518 9,267 154,421 - |
Hedge Instruments - Swap Contracts | 2018 2017 2016 Adjustment Adjustment Adjustment to Fair Value Fair Value to Fair Value Fair Value to Fair Value Fair Value Hedge Instruments Swap Contracts 12,757 218,424 (25,142) 160,114 (27,261) 48,169 Asset (11,470) 2,421,200 97,846 2,361,070 137,664 1,952,189 Indexed to Foreign Currency - Pre Dollar (1) (123,696) 1,131,928 (42,149) 992,879 84,812 - 1,477,821 Indexed to Foreign Currency - Euro (3) 111,124 1,122,779 134,435 1,223,004 52,852 474,368 Indexed to Foreign Currency - USD/BRL - Dollar (2) 1,102 166,493 5,560 145,187 - - Liabilities 24,227 (2,202,776) (122,988) (2,200,956) (164,925) (1,904,020) CDI (Interbank Deposit Rates) (1) (2) (504) (160,754) (5,735) (147,925) (995) (341,938) Indexed to Foreign Currency - Pre Reais (1) - - - - (1,288) (199,954) Indexed to Foreign Currency - Pre Euro (1) 92,505 (972,290) 13,639 (895,399) (102,998) (805,326) Indexed to Foreign Currency - Dollar (3) (67,774) (1,069,732) (130,892) (1,157,632) (59,367) (548,684) Indexed to Foreign Currency - Reais (3) - - - - (277) (8,118) |
Hedge Instruments - Future Contracts | 2018 2017 2016 Notional Notional Notional 44,541,938 60,299,595 80,149,530 Trade Finance Operations (4) 44,000,952 54,995,334 80,149,530 Foreign Currency - Dollar 9,408,707 3,362,582 450,571 Interest Rate (DI1 and DIA) 21,981,748 32,344,276 46,314,644 Interest Rate DDI1 12,610,496 19,288,476 33,384,315 Securities-available for sale 540,987 5,304,261 - Interest rate (DI1 and DIA) 540,987 5,304,261 - |
Hedge Item - Cost | 2018 2017 2016 Hedge Item - Cost Assets 19,678,934 25,697,292 27,858,923 Lending Operations - Financing and Export Credit and Imports (3) (4) 10,113,706 8,295,191 10,816,780 Loans and Receivables (2) (3) (4) 6,704,113 9,972,640 13,870,897 Financial Assets Measured at Amortized Cost (4) - 354,315 529,997 Brazilian Foreign Debt Bonds (1) 894,331 809,660 701,300 Available for sale - Promissory Notes - NP (2) (4) 1,653,969 1,194,266 1,939,949 Government Securities -LFT (5) 312,815 5,071,220 - Liabilities - - (1,332,972) Foreign Borrowings (4) - - - (1,332,972) (1) Operation with maturity date as April 1st, 2021 (12/31/2017 - operation with maturity date as April 1st, 2021), which hedge objects are securities represented by Brazilian external bonds. (2) Operations with maturity dates between April 2019 and February 2020 (12/31/2017 - operations with maturity dates between January and April, 2018), which hedge objects in 2018 are loans and in 2017 are securities represented by promissory notes. (3) Operations with maturity dates between January 2019 and February 2022 (12/31/2017 - operations with maturity dates between January 2018 and September 2022 and 12/31/2016 - operations with maturity dates between January 2017 and December 2025), which hedge objects are credit operations with credit entities. (4) Operations with maturity dates between January 2019 and September 2022 (12/31/2017 - operations with maturity dates between January 2018 and December 2020), which hedge objects are funding operations represented by Certificates of Interfinance Deposits - CDI, Bill of Exchange - LC and Financial Letter - LF. (5) Operations with maturity dates between February 2019 and December 2028 (12/31/2017 - operations with maturity dates between February 2018 and November 2026 and 12/31/2016 - operations with maturity dates between January 2017 and January 2018) and updated amount of R$16,738,641 (31/12/2017 - R$16,811,747 and 31/12/2016 - R$29,164,917) where the operations are derivatives future contracts in Dolar, DI and DDI. Those derivatives combined with trade finance operations are used to hedge the following objects: credit operations - import and export financing, loans, other credit operations and securities represented by promissory notes. (6) Operation with maturity date between September 2020 and March 2023 (12/31/2017 - operations with maturity dates between March 2021 and March 2023), which hedge objects are Financial Letters - LFT, booked in the heading of securities. |
Composed of government securities | The margin used as guarantee of the transactions traded on the B3 S.A. with derivative financial instruments from own and third parties portfolios are composed by government securities. 2018 2017 2016 Financial Treasury Bill - LFT 7,552,926 708,960 1,556,804 National Treasury Bill - LTN 3,392,886 4,371,286 4,636,644 National Treasury Notes - NTN 873,134 1,193,315 27,598 11,818,946 6,273,561 6,221,046 b) Short positions |
Loans and advances to clients (
Loans and advances to clients (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loans and advances to clients (Tables) [Abstract] | |
Balances of Loans and advances to customers | The breakdown, by classification, of the balances of “Loans and advances to clients” in the consolidated financial statements is as follows: Thousand of reais 2018 2017 2016 Classification: Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss 619,180 - - Loans and Receivables - 272,420,157 252,002,774 Financial Assets Measured At Amortized Cost 301,072,207 - - Of which: Loans and receivables at amortized cost 321,314,010 287,829,213 268,437,556 Impairment losses (20,241,803) (15,409,056) (16,434,782) Loans and advances to customers, net 301,691,387 272,420,157 252,002,774 Loans and advances to customers, gross 321,933,190 287,829,213 268,437,556 Thousand of reais 2018 2017 2016 Type: Loans operations (1) 308,364,517 272,561,017 257,256,452 Lease Portfolio 1,836,504 1,888,444 2,092,882 Repurchase agreements 509,147 403,415 308,483 Other receivables (2) 11,223,022 12,976,337 8,779,739 Total 321,933,190 287,829,213 268,437,556 (1) Includes loans and other loans with credit characteristics. (2) Refers substantially to Foreign Exchange Transactions and Other Receivables with credit granting characteristics. |
Loan borrower sector | Following is a detail, by loan type and status, borrower sector and interest rate formula, of the loans and advances to clients, which reflect the Bank's exposure to credit risk in its core business, gross of impairment losses: Thousand of reais 2018 2017 2016 Loan borrower sector: Commercial, and industrial 146,293,616 140,619,110 140,992,900 Real estate-construction 36,515,352 34,808,681 36,650,011 Installment loans to individuals 137,287,593 110,512,978 88,701,763 Lease financing 1,836,629 1,888,444 2,092,882 Total 321,933,190 287,829,213 268,437,556 |
Interest rate formula | Thousand of reais 2018 2017 2016 Interest rate formula: Fixed interest rate 240,772,724 202,592,491 178,231,509 Floating rate 81,160,466 85,236,722 90,206,047 Total 321,933,190 287,829,213 268,437,556 |
Debt Sector by Maturity | 2018 Debt Sector by Maturity Less than 1 year % of total Between 1 and 5 years % of total More than 5 years % of total Total % of total Commercial and industrial 109,802,828 58.92% 32,538,999 32.77% 3,951,789 10.90% 146,293,616 45.44% Real estate 4,298,925 2.31% 7,964,308 8.02% 24,252,119 66.90% 36,515,352 11.34% Installment loans to individuals 71,433,099 38.33% 57,808,600 58.21% 8,045,894 22.20% 137,287,593 42.64% Lease financing 838,659 0.45% 997,644 1.00% 326 0.00% 1,836,629 0.57% Loans and advances to customers, gross 186,373,511 100.00% 99,309,551 100.00% 36,250,128 100.00% 321,933,190 100.00% 2017 Debt Sector by Maturity Less than 1 year % of total Between 1 and 5 years % of total More than 5 years % of total Total % of total Commercial and industrial 103,377,571 61.65% 31,262,492 37.89% 5,979,047 19.25% 37,241,539 48.85% Real estate 7,791,753 5.35% 10,970,004 13.29% 16,046,924 51.65% 34,808,681 12.09% Installment loans to individuals 62,078,225 32.29% 39,393,699 47.74% 9,041,054 29.10% 110,512,978 38.40% Lease financing 1,000,418 0.71% 886,833 1.07% 1,193 0.00% 1,888,444 0.66% Loans and advances to customers, gross 174,247,967 100.00% 82,513,028 99.99% 31,068,218 100.00% 184,451,642 100.00% 2016 Debt Sector by Maturity Less than 1 year % of total Between 1 and 5 years % of total More than 5 years % of total Total % of total Commercial and industrial 99,657,024 61.65% 35,789,118 37.89% 554675800.00% 19.25% 41,335,876 48.85% Real estate 8,648,702 5.35% 11,761,420 13.29% 16,239,889 51.65% 36,650,011 12.09% Installment loans to individuals 52,205,927 32.29% 30,867,880 47.74% 5,627,956 29.10% 88,701,763 38.40% Lease financing 1,152,579 0.71% 937,951 1.07% 2,352 0.00% 2,092,882 0.66% Loans and advances to customers, gross 161,664,232 100.00% 79,356,369 99.99% 27,416,955 100.00% 168,780,532 100.00% |
Maturity | Thousand of reais 2018 2017 2016 Maturity Less than 1 year 186,373,511 174,247,968 161,664,232 Between 1 and 5 years 99,309,551 82,513,030 79,356,369 More than 5 years 36,250,128 31,068,215 27,416,955 Loans and advances to customers, gross 321,933,190 287,829,213 268,437,556 Internal risk classification Low 240,440,294 226,098,497 207,889,639 Medium-low 50,485,682 33,635,378 32,104,168 Medium 11,967,262 10,423,293 10,940,879 Medium - high 7,722,198 8,215,024 6,976,969 High 11,317,754 9,457,021 10,525,901 Loans and advances to customers, gross 321,933,190 287,829,213 268,437,556 |
Changes in the allowances for the impairment losses on the balances of Loans and receivables | <p style="margin:0in;margin-bottom:.0001pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:8.0pt;">The changes in the allowances for the impairment losses on the balances of “Loans and receivables” were as follows:</font></p> <p style="margin:0in;margin-bottom:.0001pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:8.0pt;"> </font></p> <table border="0" cellpadding="0" cellspacing="0" width="696" style="border-collapse:collapse;width:549.000000pt;"> <tr style="height:10.5pt;"> <td nowrap="nowrap" valign="bottom" width="25%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Thousand of reais</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="8%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="10%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td valign="bottom" width="1%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="10%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td valign="bottom" width="1%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="10%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">2018</font></b></p> </td> </tr> <tr style="height:10.5pt;"> <td nowrap="nowrap" valign="bottom" width="25%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="8%" style="background:white;border-bottom:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Stage 1</font></b></p> </td> <td valign="bottom" width="10%" style="background:white;border-bottom:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Stage 2</font></b></p> </td> <td valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="10%" style="background:white;border-bottom:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Stage 3</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="font-family:Calibri,sans-serif;text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="font-family:Calibri,sans-serif;text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> </tr> <tr style="height:10.5pt;"> <td nowrap="nowrap" valign="bottom" width="25%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td rowspan="4" valign="top" width="8%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td rowspan="4" valign="top" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;">Credit losses expected in 12 months</font></b></p> </td> <td rowspan="4" valign="top" width="10%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;">Expected credit losses over a useful life not subject to impairment</font></b></p> </td> <td valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td rowspan="4" valign="top" width="10%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;">Expected credit losses during the useful life subject to impairment</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> </tr> <tr style="height:10.5pt;"> <td nowrap="nowrap" valign="bottom" width="25%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" rowspan="3" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" rowspan="3" valign="bottom" width="10%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Total</font></b></p> </td> </tr> <tr style="height:10.5pt;"> <td nowrap="nowrap" valign="bottom" width="25%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> </tr> <tr style="height:10.5pt;"> <td nowrap="nowrap" valign="bottom" width="25%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> </tr> <tr style="height:10.5pt;"> <td nowrap="nowrap" valign="bottom" width="25%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="8%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="justify" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="justify" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="10%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="10%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> </tr> <tr style="height:10.5pt;"> <td nowrap="nowrap" valign="bottom" width="25%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;">Balance at beginning of year</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="8%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">3,833,553</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">3,767,490</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">13,122,019</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">20,723,062</font></b></p> </td> </tr> <tr style="height:10.5pt;"> <td colspan="5" nowrap="nowrap" valign="bottom" width="40%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;">Impairment losses charged to income for the year </font></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="8%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">83,725</font></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">389,100</font></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">13,067,280</font></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">13,540,105</font></b>" id="sjs-B9"><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p style="margin:0in;margin-bottom:.0001pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:8.0pt;">The changes in the allowances for the impairment losses on the balances of “Loans and receivables” were as follows:</font></p> <p style="margin:0in;margin-bottom:.0001pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:8.0pt;"> </font></p> <table border="0" cellpadding="0" cellspacing="0" width="696" style="border-collapse:collapse;width:549.000000pt;"> <tr style="height:10.5pt;"> <td nowrap="nowrap" valign="bottom" width="25%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Thousand of reais</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="8%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="10%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td valign="bottom" width="1%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="10%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td valign="bottom" width="1%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="10%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">2018</font></b></p> </td> </tr> <tr style="height:10.5pt;"> <td nowrap="nowrap" valign="bottom" width="25%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="8%" style="background:white;border-bottom:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Stage 1</font></b></p> </td> <td valign="bottom" width="10%" style="background:white;border-bottom:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Stage 2</font></b></p> </td> <td valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="10%" style="background:white;border-bottom:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Stage 3</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="font-family:Calibri,sans-serif;text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="font-family:Calibri,sans-serif;text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> </tr> <tr style="height:10.5pt;"> <td nowrap="nowrap" valign="bottom" width="25%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td rowspan="4" valign="top" width="8%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td rowspan="4" valign="top" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;">Credit losses expected in 12 months</font></b></p> </td> <td rowspan="4" valign="top" width="10%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;">Expected credit losses over a useful life not subject to impairment</font></b></p> </td> <td valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td rowspan="4" valign="top" width="10%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;">Expected credit losses during the useful life subject to impairment</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> </tr> <tr style="height:10.5pt;"> <td nowrap="nowrap" valign="bottom" width="25%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" rowspan="3" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" rowspan="3" valign="bottom" width="10%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Total</font></b></p> </td> </tr> <tr style="height:10.5pt;"> <td nowrap="nowrap" valign="bottom" width="25%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> </tr> <tr style="height:10.5pt;"> <td nowrap="nowrap" valign="bottom" width="25%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> </tr> <tr style="height:10.5pt;"> <td nowrap="nowrap" valign="bottom" width="25%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="8%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="justify" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="justify" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="10%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="10%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#292929" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> </tr> <tr style="height:10.5pt;"> <td nowrap="nowrap" valign="bottom" width="25%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;">Balance at beginning of year</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="8%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">3,833,553</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">3,767,490</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">13,122,019</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">20,723,062</font></b></p> </td> </tr> <tr style="height:10.5pt;"> <td colspan="5" nowrap="nowrap" valign="bottom" width="40%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;">Impairment losses charged to income for the year </font></p> </td> <td nowrap="nowrap" valign="bottom" width="2%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="8%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">83,725</font></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">389,100</font></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">13,067,280</font></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="10%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">13,540,105</font></b> |
The balances of the provision for losses due to non-recovery by debtor sector | The balances of the provision for losses due to non-recovery by debtor sector are as follows: Thousand of reais 2018 2017 2016 Commercial and industrial 10,791,702 10,338,225 10,555,109 Real estate - Construction 358,119 493,422 363,859 Installment loans to individuals 11,768,124 7,373,969 7,225,822 Lease financing 51,370 56,022 46,336 Total 22,969,315 18,261,638 18,191,126 |
Loans and receivables - loans and advances to customers | The details of the changes in the balance of the financial assets classified as “Loans and receivables - loans and advances to clients” (as defined at Note 1.i) and considered to be impaired due to credit risk are as follows: Thousand of reais 2018 2017 2016 Balance at beginning of year on 01/01/2018 after the initial adoption IFRS 9) 19,847,987 18,887,132 18,599,379 Net additions 13,871,666 13,679,423 11,892,321 Written-off assets (11,293,852) (13,421,560) (11,604,568) Balance at end of year 22,425,801 19,144,995 18,887,132 |
Following is a detail of the financial assets considered to be impaired classified by age of the oldest past-due amount | Following is a detail of the financial assets considered to be impaired classified by age of the oldest past-due amount: Thousand of reais 2018 2017 2016 With no Past-Due Balances or Less than 3 Months Past Due 12,000,867 10,844,831 10,550,548 With Balances Past Due by 3 to 6 Months 3,473,591 4,123,796 2,983,575 6 to 12 Months 4,929,099 3,791,805 4,921,527 12 to 18 Months 1,144,035 271,965 339,596 18 to 24 Months 325,701 20,825 53,578 More than 24 Months 552,508 91,773 38,308 Total 22,425,801 19,144,995 18,887,132 Debt Sector Commercial and industrial 11,832,302 11,993,953 11,628,655 Real estate - Construction 1,035,352 781,886 718,514 Installment loans to individuals 9,499,148 6,304,134 6,487,717 Lease financing 58,999 65,022 52,246 Total 22,425,801 19,144,995 18,887,132 |
Loan past due for less than 90 days but not classified as impaired | e) Loan past due for less than 90 days but not classified as impaired Thousand of reais 2018 % of total loans past due for less than 90 days 2017 % of total loans past due for less than 90 days 2016 % of total loans past due for less than 90 days Commercial and industrial 4,424,143 19.77% 3,559,349 19.90% 4,141,349 23.79% Real estate - Construction 4,527,432 20.23% 4,879,563 27.29% 5,201,709 29.88% Installment loans to individuals 13,255,646 59.24% 9,266,366 51.82% 7,957,294 45.71% Financial Leasing 167,741 0.75% 176,528 0.99% 108,607 0.62% Total (1) 22,374,962 100.00% 17,881,806 100.00% 17,408,959 100.00% |
Gross investment in lease transactions | Gross investment in lease transactions Thousand of reais 2018 2017 2016 Overdue 4,817 11,412 16,051 Due to: Up to 1 year 975,183 1,057,023 1,207,473 From 1 to 5 years 1,160,986 1,101,104 1,190,844 Over 5 years 1,071 2,177 4,079 Total 2,142,057 2,171,716 2,418,447 |
Non-current assets held for s_2
Non-current assets held for sale (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Non-current assets held for sale (Tables) [Abstract] | |
Change in the Non-current assets held for sale | At December 31, 2018, 2017 and 2016, the total amount of non-current assets held for sale includes foreclosed assets and other tangible assets. The change in the "Non-current assets held for sale" is as follows: Thousand of reais 2018 2017 2016 Balance at beginning of year 1,507,548 1,418,308 1,310,033 Loan repayments - repossession of assets 785,139 524,497 834,903 Capital Increase in Companies held for sale - - 10,462 Additions / disposals (net) due to change in the scope of consolidation (1)(3) (130,713) - (497,847) Sales (563,607) (434,553) (239,291) Others - (704) 48 Final balance, gross 1,598,367 1,507,548 1,418,308 Impairment losses (2) (218,136) (352,092) (80,423) Impairment as a percentage of foreclosed assets 13.65% 23.37% 10.52% Balance at end of year 1,380,231 1,155,456 1,337,885 (1) On September 30, 2016, as a result of the non-expectation of sale of investment in BW Guirapá and controlled, from a market period, an administrator transferred the total of this balance to the caption of investments in affiliated and controlled companies in the country (Note 11). In 2017, as described at note 3, this investment was sold. (2) In 2018, includes the amount of R$133,957 of provisions for devaluations on real estate and which were subsequently sold, constituted from valuation reports prepared by specialized external consulting, recorded as a provision for impairment losses, in 2017, this provision was R$271,670 (Note 43). (3 ) On June 30, 2018, The Management of Banco Santander revalued your strategy on the investment in the company Real TJK Empreendimento Imobiliário S.A. (current name for Rojo Entretenimento S.A.), a company that owns the Teatro Santander, and decided to transfer the company from non-current assets held to sale to associates and subsidiaries (Note 11). On December 31, 2018, the amount of this investment was R$0 (12/31/2017- R$130,713) in the Bank and Consolidated. |
Investments in associates and_2
Investments in associates and joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments in associates and joint ventures (Tables) [Abstract] | |
Jointly controlled and Significant Influence - Participation | a) Breakdown Participation % Jointly Controlled by Banco Santander Activity Country 2018 2017 2016 Banco RCI Brasil S.A. Bank Brazil 39.89% 39.89% 39.89% Norchem Participações e Consultoria S.A. (1) Other Activities Brazil 50.00% 50.00% 50.00% Cibrasec - Companhia Brasileira de Securitização (1) (3) (8) (14) Securitization Brazil 9.72% 9.72% 9.72% Estruturadora Brasileira de Projetos S.A. - EBP (1) (8) (10) Other Activities Brazil 11.11% 11.11% 11.11% Gestora de Inteligência de Crédito (4)(9)(11) Credit Bureau Brazil 20.00% 20.00% 20.00% Campo Grande Empreendimentos (15) Other Activities Brazil 25.32% 25.32% 25.32% Banco Hyundai Capital Brasil S.A. (formerly named BHJV Assessoria e Consultoria Empresarial Ltda.) (16) Bank Brazil 50.00% - - Santander Auto S.A. (17) Other Activities Brazil 50.00% - - Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações S.A.) Webmotors S.A. (6) (7)(11) Other Activities Brazil 70.00% 70.00% 70.00% Tecnologia Bancária S.A. - TECBAN (1) Other Activities Brazil 19.81% 19.81% 19.81% PSA Corretora de Seguros e Serviços Ltda. (5)(12)(13) Insurance Broker Brazil 50.00% 50.00% 50.00% Significant Influence of Banco Santander Norchem Holding e Negócios S.A. (1) Other Activities Brazil 21.75% 21.75% 21.75% |
Jointly controlled and Significant Influence - Investments | Investments 2018 2017 2016 Jointly Controlled by Banco Santander 613,366 495,264 578,761 Banco RCI Brasil S.A. 458,292 427,801 538,756 Norchem Participações e Consultoria S.A. 26,105 25,550 26,302 Cibrasec - Companhia Brasileira de Securitização 7,298 7,438 7,435 Estruturadora Brasileira de Projetos S.A. - EBP 3,690 4,707 6,268 Gestora de Inteligência de Crédito 59,098 29,513 - Campo Grande Empreendimentos 255 255 - Banco Hyundai Capital Brasil S.A. (former named BHJV Assessoria e Consultoria Empresarial Ltda.) 51,073 - - Santander Auto S.A. 7,555 - - Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações SA) 419,016 350,440 390,336 Webmotors S.A. 273,721 197,930 246,965 Tecnologia Bancária S.A. - TECBAN 144,090 151,019 142,713 PSA Corretora de Seguros e Serviços Ltda. 1,205 1,491 658 Significant Influence of Banco Santander 20,933 20,860 20,980 Norchem Holding e Negócios S.A. 20,933 20,860 20,980 Total 1,053,315 866,564 990,077 |
Jointly controlled and Significant Influence - Results of Investments | Results of Investments 1/01 to 12/31/2018 1/01 to 12/31/2017 1/01 to 12/31/2016 Jointly Controlled by Banco Santander 41,212 39,904 16,748 Banco RCI Brasil S.A. 46,244 44,384 14,175 Norchem Participações e Consultoria S.A. 1,120 1,333 2,637 Cibrasec - Companhia Brasileira de Securitização 193 389 366 Estruturadora Brasileira de Projetos S.A. - EBP (1,017) (1,560) (430) Gestora de Inteligência de Crédito (6,466) (4,642) - Banco Hyundai Capital Brasil S.A. (former named BHJV Assessoria e Consultoria Empresarial Ltda.) 1,083 - - Santander Auto S.A. 55 - - Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações SA) 24,161 30,430 29,538 Webmotors S.A. 30,626 21,290 23,019 Tecnologia Bancária S.A. - TECBAN (6,929) 8,307 5,971 PSA Corretora de Seguros e Serviços Ltda. 464 833 548 Jointly Controlled by Getnet S.A. - - (225) iZettle do Brasil Meios de Pagamento S.A. - - (225) Significant Influence of Banco Santander 585 1,217 1,476 Norchem Holding e Negócios S.A. 585 1,217 1,476 Total 65,958 71,551 47,537 |
Jointly controlled and Significant Influence - Total | 2018 Total assets Total liabilities Total Income (11) Jointly Controlled by Banco Santander 10,500,055 8,755,688 80,954 Banco RCI Brasil S.A. 9,849,508 8,679,715 115,928 Norchem Participações e Consultoria S.A. 79,633 27,423 2,240 Cibrasec - Companhia Brasileira de Securitização 80,300 3,893 1,989 Estruturadora Brasileira de Projetos S.A. - EBP 33,389 176 (9,151) Gestora de Inteligência de Crédito 338,382 42,894 (32,328) Banco Hyundai Capital Brasil S.A. (former named BHJV Assessoria e Consultoria Empresarial Ltda.) 103,703 1,557 2,166 Santander Auto S.A. 15,140 30 110 Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações SA) 2,463,262 1,573,082 9,703 Webmotors S.A. 221,313 60,905 43,751 Tecnologia Bancária S.A. - TECBAN 2,238,156 1,510,794 (34,976) PSA Corretora de Seguros e Serviços Ltda. 3,793 1,383 928 Significant Influence of Banco Santander 123,959 27,714 2,690 Norchem Holding e Negócios S.A. 123,959 27,714 2,690 Total 13,087,276 10,356,484 93,347 2017 Total assets Total liabilities Total Income (11) Jointly Controlled by Banco Santander 9,432,738 8,043,604 43,866 Banco RCI Brasil S.A. 9,057,261 7,985,647 74,452 Norchem Participações e Consultoria S.A. 78,674 27,574 2,665 Cibrasec - Companhia Brasileira de Securitização 86,378 9,884 4,000 Estruturadora Brasileira de Projetos S.A. - EBP 42,627 264 (14,040) Gestora de Inteligência de Crédito 167,798 20,235 (23,211) Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações SA) 1,967,989 1,077,782 74,861 Webmotors S.A. 490,458 50,413 31,264 Tecnologia Bancária S.A. - TECBAN 1,472,774 1,025,593 41,932 PSA Corretora de Seguros e Serviços Ltda. 4,757 1,776 1,665 Significant Influence of Banco Santander 122,176 26,267 5,597 Norchem Holding e Negócios S.A. 122,176 26,267 5,597 Total 11,522,903 9,147,653 124,324 2016 Total assets Total liabilities Total Income (11) Jointly Controlled by Banco Santander 8,831,611 7,318,656 89,544 Banco RCI Brasil S.A. 8,603,844 7,276,320 79,223 Norchem Participações e Consultoria S.A. 78,833 26,228 5,274 Cibrasec - Companhia Brasileira de Securitização 91,083 14,659 7,011 Estruturadora Brasileira de Projetos S.A. - EBP 57,851 1,449 (1,964) Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações SA) 1,459,826 943,028 58,595 Webmotors S.A. 145,499 35,231 29,934 Tecnologia Bancária S.A. - TECBAN 1,310,945 905,731 27,568 PSA Corretora de Seguros e Serviços Ltda. 3,382 2,066 1,093 Significant Influence of Banco Santander 127,598 31,136 6,792 Norchem Holding e Negócios S.A. 127,598 31,136 6,792 Total 10,419,035 8,292,820 154,931 b) Changes |
Jointly controlled and Significant Influence - Changes in the balance | The changes in the balance of this item were as follows: 2018 2017 2016 Jointly Controlled by Banco Santander Balance at beginning of year 845,704 969,097 1,041,239 Additions / disposals (net) due to change in the scope of consolidation - - (2,926) Additions /disposals (2) (5) 119,557 34,154 3,105 Capital reduction (6) 36,051 - (76,860) Share of results of entities accounted for using the equity method 65,373 70,334 46,061 Dividends proposed/received (35,351) (200,620) (39,424) Others 1,048 (27,261) (2,098) Balance at end of year 1,032,382 845,704 969,097 Significant Influence of Banco Santander Balance at beginning of year 20,860 20,980 19,504 Share of results of entities accounted for using the equity method 585 1,217 1,476 Dividends proposed/received (512) (1,337) - Balance at end of year 20,933 20,860 20,980 (1) Companies with a delay of one month for the equity calculation. To register the equity income it was used on 12/31/2018 the position of 11/30/2018. (2) In June 2016 the interest held in iZetlle do Brasil S.A was sold. (3) At the ESM held on April 29, 2016 was approved the reform in the distribution structure of the capital of Cibrasec through the creation of preferred shares issued by the Company with voting rights and the share conversion of the common shares of Company into preferred shares, this reform was ratified at the ESM held on May 30, 2016. Banco Santander became part of their ordinary shares held in the capital of Cibrasec, the corresponding amount to 5,000 (five thousand) common shares issued by Cibrasec 50 (fifty) preferred shares in the proportion of 100 (one hundred) common shares for each one (1) preferred share, and still held 4,000 (four thousand) common shares in the capital of Cibrasec. Each preferred share entitles the holder the right to 100 (one hundred) times the right to dividends of the common shares, so that the economic rights were maintained, however, the conversion resulted in reduction in the percentage shareholding in Cibrasec. (4) Company incorporated in April 2017 and is in the pre-operational phase. Pursuant to the shareholders' agreement, control is shared between shareholders who hold 20% of their capital stock each. At the Extraordinary General Meeting held on July 6, 2017, the capital increase of Gestora de Crédito was approved in the total amount of R$65,822, so that the capital stock increased from R$1 to R$65,823, through the issue of 6,582,200 (six million, five hundred and eighty-two thousand and two hundred) new shares, of which 3,291,100 (three million, two hundred and ninety-one thousand and one hundred), 1,316,440 (one million, three hundred and sixteen thousand, four hundred and forty) preferred shares Class A and 1,316,440 (one million, three hundred and sixteen thousand, four hundred and forty) preferred shares Class B and 658,220 (six hundred and fifty eight thousand, two hundred and twenty) class C preferred shares, with no par value, at the issue price of R$10.00, corresponding to the equity value of the shares. The shares issued in the capital increase were fully subscribed on the same date by the shareholders in the proportion of 20% of their capital stock each. (5) In 2017 refers to the incorporation of Gestora de Inteligência de Crédito - partnership between Banco Santander and other banks from brazilian market (according to note 3.d) and in 2016 refers to the acquisition agreement of part of the financial operations from the Group PSA in Brazil and the consequent creation of a Joint Venture. (6) At the ESM realized in September 26, 2016, was approved the reduction of the capital of Webmotors S.A. without cancellation of shares in the amount of R$109,800 to be considered excessive to maintain its activities, and the capital of R$194,580 to R$84,780. (7) On December 30, 2016, at the EGM of Webmotors S.A., the merger and the Private Instrument of Protocol and Justification of Incorporation of Virtual Motors by Webmotors S.A. were approved, so that Webmotors S.A. received, for its accounting value, based on the balance sheet drawn up on November 30, 2016, all of the assets, rights and obligations of Virtual Motors, with the extinction of Virtual Motors that will be succeeded by Webmotors S.A. in all its rights and obligations. (8) Although the participations was less than 20%, the Bank exercises control over the entity together with other major stockholders' through a stockholders' agreement where no business decision can be taken by a single shareholder. (9) At the EGM held in October 5, 2017, it was approved the share capital increase of the Gestora de Crédito in the amount of R$285,205, that way its share capital increased from R$65,823 to R$351,028, through the issuance of 29,013,700 new shares, being 14,506,850 as ordinary shares, 5,802,740 preferred shares Class A, 5,802,740 preferred shares Class B, and 2,901,370 preferred shares Class C, without par value, at the issuance price of R$ 9,83 per share. It was also approved by unanimous decision the payment timetable of the new shares issuance made by the Management of Gestora de Crédito. That way, the share capital increase was fully subscribed at the same day by the shareholders in the proportion of 20% of each interest which were partially paid. (10) According to its Bylaws, EBP was formed in order to carry out projects to contribute for the brazilian economic and social development for the period of 10 years. After the conclusion of the timetable set EPB closes its activities this year of 2018. The dissolution of its rights and liquidation were aproved in the EGM held on january 29, 2018. (11) Although participation exceeds 50%, in accordance with the shareholders' agreement, the control is shared by Santander Corretora de Seguros (Current corporate name of Santander Participações S.A.), and Carsales.com. Investments PTY LTD (Carsales), shareholder based in Australia. (12) Pursuant to the shareholders' agreement, the control is shared by Santander Corretora de Seguros (current corporate name of Santander Participações SA) and PSA Services LTD. (13) In December 2017, according to the contractual change, the PSA Corretora de Seguros shareholders decided to increase its share capital in R$401, that way the share capital increased from R$ 500 to R$901, through the issuance of 400,532 new shares, which each new share has the value of R$1. The new shares issued were subscribed and paid at the same date, in local currency, according to the proportion of each shareholder equivalent to 50% to the company´s share capital, that is, 200.266 shares. |
Principal jointly controlled entities | Webmotors S.A.: A company incorporated in the form of private limited company with headquarters in São Paulo which is engaged in the design, implementation and / or availability of electronic catalogs, space, products, services or means of marketing products and / or services related to the automotive industry, on the Internet or other means related to e-commerce activities and other Internet uses or applications, as well as the participation in capital in other companies and the management of related business. It is a company of the Economic Conglomerate - Financial Santander (Santander Group) and Carsales.com Investments PTY LTD (Carsales), which its operations are conducted as part of a group of institutions that operate jointly. According to the Shareholders' Agreement, the key decisions that impact this partnership are taken jointly between Banco Santander and other controllers. 2018 2017 2016 Banco RCI Brasil Webmotors Banco RCI Brasil Webmotors Banco RCI Brasil Webmotors Current assets 9,849,508 221,313 9,057,261 490,458 8,603,844 145,499 Current liabilities 8,679,715 60,905 7,985,647 50,413 7,276,320 35,231 Cash and cash equivalents 37,115 1,034 47,782 1,989 23,612 1,663 Depreciation and amortization (977) (7,423) (1,600) 16,353 (911) (12,295) Revenue 1,316,687 167,881 1,315,695 127,064 1,575,550 135,242 Interest income 1,290,703 4,134 1,294,119 7,178 1,368,643 28,047 Interest expense (575,944) - (626,654) - (903,061) - Tax Income / (expense) (147,266) (16,013) (122,544) (12,568) (3,326) (13,370) Current financial liabilities (excluding trade and other payables and provisions) 3,130,908 49,709 3,897,010 33,320 3,629,575 31,707 Non-current financial liabilities (excluding trade and other payables and provisions) 4,813,909 5,458 4,058,986 3,247 3,646,745 1,736 |
Tangible assets (Tables)
Tangible assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tangible assets (Tables) [Abstract] | |
Tangible assets in the consolidated balance sheets | The detail, by class of asset, of the tangible assets in the consolidated balance sheets is as follows: Thousand of reais Cost Land and buildings IT equipment and fixtures Furniture and vehicles Others Total Balance at December 31, 2015 2,724,859 3,150,747 7,363,491 3,759 13,242,856 Additions 3,024 154,852 715,264 - 873,140 Additions resulting mergers - 2,021 3,961 - 5,982 Write-off (29,174) (15,011) (141,442) - (185,627) Change in scope of consolidation - 45 257 - 302 Transfers 12,484 74,361 (82,650) - 4,195 Balance at December 31, 2016 2,711,193 3,367,015 7,858,881 3,759 13,940,848 Additions - 382,571 723,835 - 1,106,406 Write-off (52,102) (180,036) (31,053) - (263,191) Transfers (9,779) 718,666 (721,520) - (12,633) Balance at December 31, 2017 2,649,312 4,288,216 7,830,143 3,759 14,771,430 Additions 2,534 449,489 941,895 381 1,394,299 Write-off (18,230) (162,497) (199,877) - (380,604) Transfers 45,663 32,232 640,758 (3,759) 714,894 Additions by Company Acquisition - 1,368 463 - 1,831 Change in scope of consolidation 99,759 19,517 17,749 1,302 138,327 Balance at December 31, 2018 2,779,038 4,628,325 9,231,131 1,683 16,640,177 Accumulated depreciation Balance at December 31, 2015 (531,546) (2,092,880) (3,602,731) - (6,227,157) Additions (82,963) (387,855) (683,770) - (1,154,588) Additions resulting mergers - (1,594) (1,234) - (2,828) Write-off 13,999 13,092 121,338 - 148,429 Change in scope of consolidation - (26) (76) - (102) Transfers 6,300 (39,836) (5,761) - (39,297) Balance at December 31, 2016 (594,210) (2,509,099) (4,172,234) - (7,275,543) Additions (81,910) (499,542) (609,515) - (1,190,967) Write-off 37,136 154,471 22,196 - 213,803 Transfers 9,734 (437,527) 427,506 - (287) Balance at December 31, 2017 (629,250) (3,291,697) (4,332,047) - (8,252,994) Additions (82,714) (484,629) (649,361) - (1,216,704) Write-off 8,816 140,332 109,447 - 258,595 Transfers (52,094) (76,292) (631,965) - (760,351) Additions by Company Acquisition - (978) (196) - (1,174) Change in scope of consolidation (5,602) (1,448) (7,136) - (14,186) Balance at December 31, 2018 (760,844) (3,714,712) (5,511,258) - (9,986,814) Losses from non-recovery (impairment) Balance at December 31, 2015 (9,785) - - - (9,785) Impacts on results (3,246) - (5,841) - (9,087) Write-off 23,588 - - - 23,588 Balance at December 31, 2016 10,557 - (5,841) - 4,716 Impacts on results 9,784 - 1,047 - 10,831 Transfers - - (512) - (512) Balance at December 31, 2017 20,341 - (5,306) - 15,035 Impacts on results (10,607) - (49,556) - (60,163) Transfers (5) - 4,333 - 4,328 Balance at December 31, 2018 9,729 - (50,529) - (40,800) Carrying amount Balance at December 31, 2016 2,127,540 857,916 3,680,806 3,759 6,670,021 Balance at December 31, 2017 2,040,403 996,519 3,492,790 3,759 6,533,471 Balance at December 31, 2018 2,027,923 913,613 3,669,344 1,683 6,612,563 |
Intangible assets - Goodwill (T
Intangible assets - Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible assets - Goodwill (Tables) [Abstract] | |
Breakdown | Based on the assumptions described above, no impairment loss was recognized for goodwill at December 31, 2018, 2017 and 2016. Thousand of reais 2018 2017 2016 Breakdown Banco ABN Amro Real S.A. (Banco Real) 27,217,565 27,217,565 27,217,565 Olé Consignado (Current Company name of Banco Bonsucesso Consignado) 62,800 62,800 62,800 Super Pagamentos e Administração de Meios Eletrônicos Ltda. (Super) 13,050 13,050 13,050 Banco PSA Finance Brasil S.A. 1,557 1,557 - Getnet Adquirência e Serviços para Meios de Pagamento S.A. (Santander Getnet) 1,039,304 1,039,304 1,039,304 BW Guirapá I S.A. - - 22,320 Ipanema Empreendimentos e Participações Ltda. 27,630 28,120 - Santander Brasil Tecnologia S.A. 16,382 - - Others - 1,860 - Total 28,378,288 28,364,256 28,355,039 |
Main assumptions | Commercial Banking 2018 2017 2016 Main assumptions: Basis of determining recoverable amounts Value in use: cash flows Period of the projections of cash flows (1) 5 years 5 years 5 years Growth rate perpetual 5.1% 8.3% 8.0% Discount rate (2) 13.6% 14.6% 15.2% (1) The projections of cash flow are prepared using Management´s growth plans and internal budget, based on historical data, market expectations and conditions such as industry growth, interest rate and inflation. (2) The discount rate is calculated based on the capital asset pricing model (CAPM). The discount rate before tax is 19.33% ( 2017 - 20.42% and 2016 - 20.23%). |
Changes of goodwill | The changes of goodwill in December 31, 2018, 2017 and 2016 were as follows: Thousand of reais 2018 2017 2016 Balance at beginning of the year 28,364,256 28,355,039 28,332,719 Additions (loss): BW Guirapá (Note 3.c) - (22,320) 22,320 Banco PSA Finance Brasil S.A. - 1,557 - Ipanema Empreendimentos e Participações Ltda. (490) 28,120 - Santander Brasil Tecnologia S.A. 16,382 - - Others (1,860) 1,860 - Balance at end of the year 28,378,288 28,364,256 28,355,039 |
Intangible assets - Other int_2
Intangible assets - Other intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible assets - Other intangible assets (Tables) [Abstract] | |
The details by asset category of the 'other intangible assets' | The details by asset category of the "other intangible assets" of the consolidated financial statements are as follow: Cost IT developments Other assets Total Balance at December 31, 2015 5,202,500 397,716 5,600,216 Additions 652,490 18,395 670,885 Additions resulting mergers 250 89 339 Write-off (450) (10,202) (10,652) Additions / disposals (net) due to change in the scope of consolidation 4 - 4 Transfers 12,150 - 12,150 Balance at December 31, 2016 5,866,944 405,998 6,272,942 Additions 824,411 12,072 836,483 Write-off (125,307) (7,096) (132,403) Transfers 4,633 - 4,633 Balance at December 31, 2017 6,570,681 410,974 6,981,655 Additions 804,782 137 804,919 Write-off (477,434) (40) (477,474) Transfers 11,567 - 11,567 Additions resulting mergers 590 - 590 Additions / disposals (net) due to change in the scope of consolidation 87 - 87 Balance at December 31, 2018 6,910,273 411,071 7,321,344 Accumulated amortization IT developments Other assets Total Balance at December 31, 2015 - (2,848,994) (266,779) (3,115,773) Additions (304,046) (24,005) (328,051) Additions resulting mergers (249) - (249) Write-off 141 10,202 10,343 Additions / disposals (net) due to change in the scope of consolidation (1) - (1) Transfers 32,167 3,427 35,594 Balance at December 31, 2016 (3,120,982) (277,155) (3,398,137) Additions (449,709) (21,571) (471,280) Write-off 854 5,500 6,354 Transfers 17,402 464 17,866 Balance at December 31, 2017 (3,552,435) (292,762) (3,845,197) Additions (504,009) (19,246) (523,255) Write-off 25,242 - 25,242 Transfers (1,000,893) 58 (1,000,835) Additions resulting mergers (583) - (583) Additions / disposals (net) due to change in the scope of consolidation (15) - (15) Balance at December 31, 2018 (5,032,693) (311,950) (5,344,643) Losses from non-recovery (Impairment) - IT Balance at December 31, 2015 (994,802) - (8,698) (1,003,500) Impact on net profit (1) 898 (6,736) (5,838) Write-off 16,193 143 16,336 Balance at December 31, 2016 (977,711) (15,291) (993,002) Impact on net profit (306,110) - - (306,110) Transfers 441 - 441 Balance at December 31, 2017 (1,283,380) (15,291) (1,298,671) Impact on net profit (1) (300,865) - (300,865) Write-off 1,263,535 - 1,263,535 Balance at December 31, 2018 (320,710) (15,291) (336,001) Carrying amount Balance at December 31, 2016 1,768,251 113,552 1,881,803 Balance at December 31, 2017 1,734,866 102,921 1,837,787 Balance at December 31, 2018 1,556,870 83,830 1,640,700 (1) In 2018, it refers to impairment loss of assets in the acquisition and development of software. The loss in the acquisition and development of software was recorded due to obsolescence function and disruption of these systems. |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other assets (Tables) [Abstract] | |
Balance of Other assets | The breakdown of the balance of “Other assets” is as follows: Thousand of reais 2018 2017 2016 Customer relationships 1,674,187 1,679,305 1,197,278 Prepayments and accrued income 685,755 784,456 690,814 Contractual guarantees of former controlling stockholders (Note 23.c.5) 605,638 707,130 814,925 Actuarial asset (Note 22) 273,281 198,189 153,662 Other receivables (1) 1,561,606 1,209,190 2,247,333 Total 4,800,467 4,578,270 5,104,012 (1) Corresponds mainly to receivables from third parties. |
Deposits from the Brazilian C_2
Deposits from the Brazilian Central Bank and Deposits from credit institutions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits from the Brazilian Central Bank and Deposits from credit institutions (Tables) [Abstract] | |
Classification, type and currency | The breakdown, by classification, type and currency, of the balances of these items is as follows: Thousand of reais 2018 2017 2016 Classification: Financial liabilities at amortized cost 99,022,806 79,374,685 78,634,072 Total 99,022,806 79,374,685 78,634,072 Type: Deposits on demand (1) 709,605 306,081 314,112 Time deposits (2) 47,227,456 52,739,163 49,548,858 Repurchase agreements 51,085,745 26,329,441 28,771,102 Of which: Backed operations with Private Securities (3) 6,977,766 - 446,429 Backed operations with Government Securities 44,107,979 26,329,441 28,324,673 Total 99,022,806 79,374,685 78,634,072 Thousand of reais 2018 2017 2016 Currency: Reais 74,159,613 56,562,950 51,339,830 Euro 105,119 407,814 576,994 US dollar 24,758,074 22,156,054 26,546,404 Other currencies - 247,867 170,844 Total 99,022,806 79,374,685 78,634,072 (1) Non-interest bearing accounts. (2) It includes the operation with credit institution arising from export and import financing lines, BNDES and Finame on-lending and abroad and other credit lines abroad. (3) Refers primarily to repurchase agreements backed by own-issued debentures. |
Client deposits (Tables)
Client deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Client deposits (Tables) [Abstract] | |
The breakdown, by classification and | The breakdown, by classification and type, of the balance of “Customer deposits” is as follows: Thousand of reais 2018 2017 2016 Classification: Financial liabilities at amortized cost 304,197,800 276,042,141 247,445,177 Total 304,197,800 276,042,141 247,445,177 Type: Demand deposits Current accounts (1) 18,853,519 17,559,985 15,868,201 Savings accounts 46,068,346 40,572,369 36,051,476 Time deposits 190,982,541 146,817,650 94,478,875 Repurchase agreements 48,293,394 71,092,137 101,046,625 Of which: Backed operations with Private Securities (2) 6,977,766 33,902,890 59,460,210 Backed operations with Government Securities 41,315,628 37,189,247 41,586,415 Total 304,197,800 276,042,141 247,445,177 (1) Non-interest bearing accounts. (2) Refers primarily to repurchase agreements backed by own-issued debentures. |
Marketable debt securities (Tab
Marketable debt securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Marketable debt securities (Tables) [Abstract] | |
Balance of Marketable debt securities | The breakdown, by classification and type, of the balance of “Marketable debt securities” is as follows: Thousand of reais 2018 2017 2016 Classification: Financial liabilities at amortized cost 74,626,232 70,247,012 99,842,955 Total 74,626,232 70,247,012 99,842,955 Type: Real estate credit notes - LCI (1) 27,159,982 27,713,873 23,983,429 Eurobonds 4,516,647 1,992,828 7,721,646 Treasury Bills (2) 30,721,206 31,686,259 61,157,037 Agribusiness credit notes - LCA 11,925,018 8,854,052 6,980,843 Guaranteed Real Estate Credit Notes (3) 303,379 - - Total 74,626,232 70,247,012 99,842,955 |
Indexes | Indexers: Domestic Abroad Treasury Bills 97% to 106% of CDI - 100% of IGPM - 100% of IPCA - Pre fixed: 6.04% to 17.46% - 105,5% of SELIC - Real estate credit notes - LCI 73% to 9.,5% of CDI - Pre fixed: 7,3% of 14% - 100% of IPCA - 100% of TR - Agribusiness credit notes - LCA 84% to 96% of CDI - Guaranteed Real Estate Credit Notes - LIG 95% to 98% of CDI Eurobonds - 0.9% to 9% (1) Real Estate Credit Notes are fixed income securities pegged by mortgages and mortgage-backed securities or liens on property. On December 31, 2018, have maturities between 2019 and 2026 (2017 - there are maturities between 2018 to 2026 and 2016 - there are maturities between 2017 to 2026). (2) The main features of the Treasury Bills are the minimum period of two years, minimum notional of R$300 and permission for early redemption of only 5% of the issued amount. On December 31, 2018, have a maturity between 2019 to 2025 (2017 - have a maturity between 2018 to 2025 and 2016 - there are maturities between 2017 to 2025). (3) Guaranteed Real Estate Letters are real estate investment securities guaranteed by the issuer and by a pool of real estate credits separated from the other assets of the issuer. As of December 31, 2018 maturity until 2021. |
Breakdown by currency of the balance | The breakdown, by currency, of the balance of this account is as follows: Thousand of reais Currency: 2018 2017 2016 Real 70,109,585 68,335,103 92,132,195 US dollar 4,516,647 1,911,909 7,645,542 Euro - - 65,218 Total 74,626,232 70,247,012 99,842,955 |
Breakdown by currency of the balance - Average interest (%) | Average interest (%) Currency: 2018 2017 2016 Real 5.5% 5.5% 11.7% US dollar 5.9% 6.8% 3.7% Total 5.6% 5.7% 11.3% |
The changes in the balance | The changes in the balance of Marketable debt instruments were as follows: Thousand of reais 2018 2017 2016 Balance at beginning of the year 70,247,012 99,842,955 94,658,300 Issuances 73,765,081 59,663,420 50,313,469 Payments (78,903,009) (97,009,957) (56,164,769) Interest (Note 33) 4,606,949 7,901,199 12,212,922 Exchange differences and Others 4,910,199 (150,605) (1,305,204) Additions arising from acquisitions of companies - - 128,237 Balance at end of the year 74,626,232 70,247,012 99,842,955 |
Breakdown of Bonds and other securities | The breakdown of "Bonds and other securities" is as follows: Interest rate (p.y) Issuance Maturity Currency 2018 2017 2016 Eurobonds 2007 2017 BRL FIDC - - 1,930 Eurobonds 2016 2017 USD 0,7% to 2,5% - - 3,408,932 Eurobonds 2012 2017 USD 4.6% - - 4,116,309 Eurobonds 2017 2018 USD Zero Coupon to 2,4% - 1,195,668 - Eurobonds 2017 2019 USD Libor 3M + 1,0% 194,243 165,677 - Eurobonds 2018 2019 USD Zero Coupon to 9% 855,035 - - Eurobonds 2018 2019 USD Libor 3M + 0,95% 19,386 - - Eurobonds 2018 2019 USD Libor 1M + 1,5% 197,055 - - Eurobonds 2018 2019 USD 3.5% 34,776 - - Eurobonds 2018 2019 USD 6,6% to 6,7% 1,211,361 - - Eurobonds 2018 2019 USD 9.0% 1,287,821 - - Eurobonds 2017 2024 USD 6,9% to 10,0% 639,275 541,487 - Others 77,695 89,996 194,475 Total 4,516,647 1,992,828 7,721,646 |
Subordinated liabilities (Table
Subordinated liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Subordinated liabilities (Tables) [Abstract] | |
Balance of Subordinated liabilities | The detail of the balance of “Subordinated liabilities” is as follows: Thousand of reais Issuance Maturity (1) Amount (millions) Interest rate 2018 2017 2016 Subordinated Liabilities May-08 May-15 to May-18 R$283 CDI (2) - 109,572 98,378 Subordinated Liabilities May-08 to June-08 May-15 to June-18 R$268 IPCA (3) - 409,658 367,868 Notes (4) January-14 Perpetual R$3.000 7.375% 4,906,880 - - Notes (4) January-14 January-24 R$3.000 6.000% 4,978,728 - - Total 9,885,608 519,230 466,246 (1) Subordinated time deposits issued by Banco Santander S.A. with yield paid at the end of the term together with the principal. (2) Between December 2017 and May 2018, indexed by 100% and 112% of the CDI. (3) Between December 2017 and June 2018, indexed by the IPCA (extended consumer price index) plus interest of 8.3% p.a. to 8.4% p.a. (4) On December 18, 2018, the Bank Central of Brazil issued approval for the repurchase of the notes issued on January 29, 2014, this approval led to the reclassification of these instruments from the Debt Instruments Eligible to Compose Capital to Subordinated Debt (Note 20). |
By currency, of the balance of Subordinated liabilities | The detail by currency, of the balance of “Subordinated liabilities” is as follows: Thousand of reais Average Interest Rate (%) Currency: 2018 2017 2016 2018 2017 2016 Real 9,885,608 519,230 466,246 4.9% 7.5% 9.6% Total 9,885,608 519,230 466,246 4.9% 7.5% 9.6% |
Changes in Subordinated liabilities | Changes in the balance of "Subordinated liabilities" in twelve-months period ended December 31, 2018, 2017 and 2016 were as follows: 2018 2017 2016 Balance at beginning of year 519,230 466,246 8,097,304 Payments (544,566) - (8,362,652) Interest (Note 33) 25,336 52,984 731,594 Transfers (Note 20) 9,885,608 - - Balance at end of year 9,885,608 519,230 466,246 |
Debt Instruments Eligible to _2
Debt Instruments Eligible to Compose Capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Instruments Eligible to Compose Capital (Tables) [Abstract] | |
Balance of Debt Instruments Eligible to Compose Capital | Details of the balance of "Debt Instruments Eligible to Compose Capital" for the issuance of such instruments to compose the Tier I and Tier II of regulatory capital due to the Regulatory Capital Optimization Plan (Note 28.e), are as follows: 2018 2017 2016 Issuance Maturity Issuance Value Interest Rate (p.a.) (3) Tier I (1) (5) jan-14 no maturity (perpetual) R$3,000 7.375% - 4,187,531 4,125,557 Tier II (2) (5) jan-14 jan-24 R$3,000 6.000% - 4,249,370 4,186,361 Tier I (4) nov-18 no maturity (perpetual) US$1,250 7.250% 4,893,668 - - Tier II (4) nov-18 nov-28 US$1,250 6.125% 4,886,276 - - Total 9,779,944 8,436,901 8,311,918 (1) Notes repurchased in 2019; As authorized by Bacen on December 17, 2018, as of the date of their issuance, Level I and II of RC must be excluded. (2) Notes repurchased in 2019; As authorized by Bacen on December 17, 2018, as of the date of their issuance, Level I and II of RC must be excluded. (3) The debts of January 2014 were made by Banco Santander in Brazil, therefore, as Income Tax at source assumed by the issuer, in the form of a corresponding exchange rate, is 8.676% and 7.059% for the instruments Level I and Level II, respectively. The emissions generated from November 2018 were made through the Cayman Agency and, consequently, there is no incidence of Income Tax at Source. (4) Interest paid semiannually, as of May 8, 2019. (5) On December 18, 2018, the Central Bank of Brazil issued the approval for the repurchase of the notes issued on January 29, 2014, this approval led to the reclassification of these instruments from the Debt Instruments Eligible to Compose Capital to Subordinated Debt (Note 19). |
Changes in the balance of Debt Instruments Eligible to Compose Capital | Changes in the balance of "Debt Instruments Eligible to Compose Capital" in twelve-months period ended December 31, 2018, 2017 and 2016 were as follows 2018 2017 2016 Balance at beginning of the year 8,436,901 8,311,918 9,959,037 Emission of interest - Tier I 4,673,875 - - Emission of interest - Tier II 4,673,875 - - Interest payment Tier I (1) 331,677 273,123 276,587 Interest payment Tier II (1) 272,539 222,065 225,161 Exchange differences / Others 1,960,467 252,941 (1,447,196) Payments of interest - Tier I (381,008) (344,867) (379,039) Payments of interest - Tier II (302,775) (278,279) (322,632) Transfers (9,885,607) - - Balance at end of the year 9,779,944 8,436,901 8,311,918 |
Other financial liabilities (Ta
Other financial liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other financial liabilities (Tables) [Abstract] | |
Breakdown of the balances | The breakdown of the balances of these items is as follows: Thousand of reais 2018 2017 2016 Credit card obligations 39,761,739 32,049,712 25,420,237 Unsettled financial transactions (2) 3,356,871 3,905,236 3,829,374 Dividends and Interest on Capital payable 4,508,569 4,553,914 4,346,128 Tax collection accounts - Tax payables 1,205,746 1,077,860 1,157,386 Liability associated with the transfer of assets (Note 9.g) 126,906 428,248 774,673 Other financial liabilities (1) 2,769,005 2,245,765 1,351,301 Total 51,728,836 44,260,735 36,879,099 (1) As of December 31, 2018, the financial liability is included in the total amount of R$519 million (2017 - R$484 million and 2016 - R$307 million), related to the purchase option period of the shares held by Banco Bonsucesso. The exercise period is the defined between two periods, the first from February 10, 2019 to February 10, 2021, if the exercise does not occur in the first period, the second period will be from February 10, 2023 to February 10, 2025 and R$1,427 (2017 - R$1,223 million and 2016 - R$950 million), referring to an option with shares issued by Getnet SA, which was authorized by Bacen on February 18, 2019. (2) Includes operations to settle with B3 S.A. (Current Company Name of BM&FBovespa) and payment orders in foreign currency. |
Provisions for pensions and s_2
Provisions for pensions and similar obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Provisions for pensions and similar obligations (Tables) [Abstract] | |
Funding status of the defined benefit obligations | The funding status of the defined benefit obligations in 2018 and in the last 2 years are as follows: 2018 2017 2016 Present value of the obligations - Post-employment plans: To current employees 716,492 796,243 770,423 Vested obligations to retired employees 23,296,715 21,205,366 19,998,703 24,013,207 22,001,609 20,769,126 Less: Fair value of plan assets 22,708,990 20,689,637 20,116,916 Unrecognized assets (1) (1,079,808) (1,090,682) (969,161) Provisions - Post-employment plans, net 2,384,025 2,402,654 1,621,371 Present value of the obligations - Other similar obligations: To current employees 184,606 228,107 200,009 Vested obligations to retired employees 4,604,466 4,815,654 4,046,480 4,789,072 5,043,761 4,246,489 Less: Fair value of plan assets 4,157,251 3,721,147 3,310,895 Unrecognized assets (1) (68,527) - - Provisions - Other similar obligations, net 700,348 1,322,614 935,594 Total provisions for pension plans, net 3,084,373 3,725,268 2,556,965 Of which: Actuarial provisions 3,357,654 3,923,457 2,710,627 Actuarial assets (note 15) 273,281 198,189 153,662 (1) Refers to fully funded surplus plans Banesprev I and III, Sanprev I,II and III and Bandeprev. |
Amounts recognized in the consolidated income statement in relation to defined benefit obligations | The amounts recognized in the consolidated income statement in relation to the aforementioned defined benefit obligations are as follows: Post-Employment Plans 2018 2017 2016 Staff costs - Current service costs (note 40) 3,142 14,605 15,416 Interest and similar income and expenses - Interest cost (net) (notes 32 and 33) 124,754 70,429 120,524 Interest and similar income and expenses - Interest on unrecognized assets (notes 32 and 33) 104,160 105,832 117,981 Other movements 12,432 5,323 4,355 Total 244,488 196,189 258,276 |
Amounts recognized in the consolidated income statement in relation to defined benefit obligations - Other Similar Obligations | Other Similar Obligations 2018 2017 2016 Staff costs - Current service costs (note 40) 5,797 5,476 9,064 Interest and similar income and expenses - Interest cost (net) (notes 32 and 33) 76,124 99,575 38,064 Interest and similar income and expenses - Interest on unrecognized assets (notes 32 and 33) 15,521 - 14,608 Other movements (2) (816,230) - 55,943 Total (718,788) 105,051 117,679 |
Changes in the present value of the accrued defined benefit obligations | The changes in the present value of the accrued defined benefit obligations were as follows: Post-Employment Plans 2018 2017 2016 Present value of the obligations at beginning of year 22,001,609 20,769,126 17,525,799 Current service cost (Note 40) 3,142 14,605 15,416 Interest cost 2,029,099 2,170,639 2,046,949 Benefits paid (1,876,014) (1,834,681) (1,679,794) Actuarial (gains)/losses 1,674,908 871,308 2,844,733 Others 180,463 10,612 16,023 Present value of the obligations at end of year 24,013,207 22,001,609 20,769,126 |
Changes in the present value of the accrued defined benefit obligations - Other Similar Obligations | Other Similar Obligations 2018 2017 2016 Present value of the obligations at beginning of year 5,043,761 4,246,489 6,034,734 Current service cost (Note 40) 5,797 5,476 9,064 Interest cost 438,567 447,653 703,874 Benefits paid (346,185) (339,538) (465,029) Actuarial (gains)/losses 455,193 683,681 1,330,371 Other (1) (2) (808,061) - (3,366,525) Present value of the obligations at end of year 4,789,072 5,043,761 4,246,489 (1) In the fourth quarter of 2016, Banco Santander updated the procedures for recognizing its obligations to the entity CABESP, in accordance with its bylaws, which establishes the coverage of medical costs in the equality of proportion between associates and sponsor. (2) In the year ended December 31, 2018 there was an increase in the cost contribution established for a postemployment benefit plan, which is calculated as a percentage of the total monthly compensation of associates. The increase in the contribution resulted in a decrease in the past service cost, due to changes in the plan. The envisaged changes implied a reduction in the present value of the obligations of the defined benefit plan, which is supported by actuarial valuations. In the Consolidated Statements of Income, this amount was recorded under Provision (Net). |
Changes in the fair value of the plan assets | The changes in the fair value of the plan assets were as follows: Post-Employment Plans 2018 2017 2016 Fair value of plan assets at beginning of year 20,689,637 20,116,916 16,275,269 Interest (Expense) Income 1,904,345 2,100,211 1,926,424 Remeasurement - Actual return (loss) on plan assets excluding the amounts included in net interest expense 1,347,689 268,309 1,589,517 Contributions/(surrenders) 481,959 38,883 2,001,806 Of which: By the Bank 472,723 27,439 1,985,722 By plan participants 9,236 11,444 16,084 Benefits paid (1,876,014) (1,834,682) (1,676,116) Exchange differences and other items 161,374 - 16 Fair value of plan assets at end of year 22,708,990 20,689,637 20,116,916 |
Changes in the fair value of the plan assets - Other Similar Obligations | Other Similar Obligations 2018 2017 2016 Fair value of plan assets at beginning of year 3,721,147 3,310,895 5,673,071 Interest (Expense) Income 362,444 348,078 665,811 Remeasurement - Actual return (loss) on plan assets excluding the amounts included in net interest expense 304,632 303,504 718,628 Contributions/(surrenders) 72,548 61,803 - Of which: By the Bank 72,548 61,803 - Benefits paid (310,458) (303,133) (3,746,615) Exchange differences and other items 6,938 - - Fair value of plan assets at end of year 4,157,251 3,721,147 3,310,895 |
Opening of gains (losses) Actuarial from experience, financial assumptions and demographic hypotheses | Breakdown of gains (losses) actuarial by experience, financial assumptions and demographic hypotheses: Post-Employment Plans 2018 2017 2016 Experience Plan (803,717) 686,204 (696,910) Changes in Financial Assumptions (871,176) (1,557,689) (2,135,189) Changes in Financial Demographic - 146 (12,773) Gain (Loss) Actuarial - Obligation (1,674,893) (871,339) (2,844,872) Return on Investment, Return Unlike Implied Discount Rate 1,344,089 270,158 1,589,446 Gain (Loss) Actuarial - Asset 1,344,089 270,158 1,589,446 Changes in Surplus / Deficit Uncollectible 117,320 (15,690) - |
Opening of gains (losses) Actuarial from experience, financial assumptions and demographic hypotheses - Other Similar Obligations | Other Similar Obligations 2018 2017 2016 Experience Plan (79,810) (303,396) (1,116,845) Changes in Financial Assumptions (376,949) (380,285) (537,952) Changes in Financial Demographic - - (379) Gain (Loss) Actuarial - Obligation (456,759) (683,681) (1,655,176) Return on Investment, Return Unlike Implied Discount Rate 307,048 303,504 718,628 Gain (Loss) Actuarial - Asset 307,048 303,504 718,628 Changes in Surplus Uncollectible (52,604) - - |
Experience adjustments arising from plan assets and liabilities | The experience adjustments arising from plan assets and liabilities are shown bellow: Post - Employment Plans 2018 2017 2016 Experience in Net Assets Adjustments 1,347,689 268,309 1,589,517 |
Experience adjustments arising from plan assets and liabilities - Other Similar Obligations | Other Similar Obligations 2018 2017 2016 Experience in Net Assets Adjustments 304,632 303,504 718,628 |
Amounts of actuarial obligation of defined benefit plans uninsured and defined benefit plans partially or totally covered | The amounts of actuarial obligation of defined benefit plans not covered and defined benefit plans partially or totally covered are shown below: 2018 2017 2016 700,347 701,551 826,963 28,101,932 26,343,818 22,734,017 |
Main categories of plan assets as a percentage of total plan assets | The main categories of plan assets as a percentage of total plan assets are as follows: 2018 2017 2016 Equity instruments 4.81% 4.60% 1.00% Debt instruments 94.59% 94.70% 98.16% Properties 0.28% 0.35% 0.30% Other 0.32% 0.35% 0.54% |
Estimated benefits payable | The following table shows the estimated benefits payable on December 31, 2018 for the next ten years: 2019 2,109,187 2020 2,160,320 2021 2,209,720 2022 2,281,827 2023 2,352,046 2024 to 2028 12,734,200 Total 23,847,300 |
change of one percentage point in the medical care cost rates | Assumptions about the rates related to medical care costs have a significant impact on the amounts recognized in income. The change of one percentage point in the medical care cost rates would have the effects as follows: Sensitivity (+) 1,0% (-) 1,0% Effect on current service cost and interest on actuarial liabilities 69,961 (62,469) Effects on present value of obligation 761,619 (680,061) |
Duration of the actuarial liabilities of the plans sponsored | The following table shows the duration of the actuarial liabilities of the plans sponsored by Banco Santander: Plans Post - Employment Plans Duration (in years) Banesprev Plans I 11.35 Banesprev Plans II 11.73 Banesprev Plans III 9.39 Banesprev Plans IV 14.00 Banesprev Plans V 8.87 Banesprev Pre-75 9.62 Sanprev I 6.47 Sanprev II 10.83 Sanprev III 9.66 Bandeprev Basic 9.57 Bandeprev Special I 6.70 Bandeprev Special II 6.52 SantanderPrevi 7.30 CACIBAN / DAB / DCA 6,79/5,79/6,37 |
Duration of the actuarial liabilities of the plans sponsored - Other Similar Obligations | Plans Other Similar Obligations Cabesp 14.16 Bandepe 14.73 Free Clinic 11.04 Lifetime officers 8.63 Circulars (1) 11,72 e 10,68 Life Insurance 7.82 (1) The duration 11.72 refers to the plan of Former Employees of Banco ABN Amro and 10.68 to the plan of Former Employees of Banco Real. |
Actuarial Assumptions Adopted in Calculations | <p align="justify" style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:8.0pt;">Actuarial Assumptions Adopted in Calculations</font></b></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:8.0pt;"> </font></p> <table border="0" cellpadding="0" cellspacing="0" width="712" style="border-collapse:collapse;width:534.750000pt;"> <tr style="height:10.5pt;"> <td valign="top" width="1%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="justify" style="background:white;"><font color="#404040" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="32%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">2018</font></b></p> </td> <td valign="top" width="9%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="justify" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="11%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">2017</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="11%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#404040" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="11%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">2016</font></b></p> </td> </tr> <tr style="height:10.5pt;"> <td valign="top" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="justify" style="background:white;"><font color="#404040" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="32%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Pension</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Health</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Pension</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="11%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Health</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="11%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Pension</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="11%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Health</font></b></p> </td> </tr> <tr style="height:33.0pt;"> <td colspan="3" valign="bottom" width="34%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:33.0pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;">Nominal Discount Rate for Actuarial Obligation </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:33.0pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:33.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">9.1%</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:33.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">9.3%</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:33.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">9.5%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:33.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">9.7%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:33.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">10.9%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:33.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">10.8%</font></p> </td> </tr> <tr style="height:32.25pt;"> <td colspan="3" valign="bottom" width="34%" style="background:white;border-bottom:solid black 1.0pt;height:32.25pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;">Rate Calculation of Interest Under Assets to the Next Year</font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-bottom:solid black 1.0pt;height:32.25pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:32.25pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">9.1%</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:32.25pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">9.3%</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:32.25pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">9.5%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:32.25pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">9.7%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:32.25pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">10.9%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:32.25pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">10.8%</font></p> </td> </tr> <tr style="height:10.5pt;"> <td colspan="2" nowrap="nowrap" valign="bottom" width="33%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;">Estimated Long-term Inflation Rate</font></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">4.0%</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">4.0%</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">4.0%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">4.0%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">4.5%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">4.5%</font></p> </td> </tr> <tr style="height:10.5pt;"> <td colspan="2" nowrap="nowrap" valign="bottom" width="33%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Estimated Salary Increase Rate</font></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">5.0%</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">5.0%</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">5.0%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">5.0%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">5.0%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">5.0%</font></p> </td> </tr> <tr style="height:10.5pt;"> <td colspan="2" nowrap="nowrap" valign="bottom" width="33%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Mortality tables </font></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">AT2000</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">AT2000</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">AT2000</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">AT2000</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">AT2000</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">AT2000</font></p> </td> </tr> </table>" id="sjs-B21"><!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><p align="justify" style="margin:0in;margin-bottom:.0001pt;"><b><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:8.0pt;">Actuarial Assumptions Adopted in Calculations</font></b></p> <p align="justify" style="margin:0in;margin-bottom:.0001pt;"><font lang="EN-US" style="font-family:Arial,sans-serif;font-size:8.0pt;"> </font></p> <table border="0" cellpadding="0" cellspacing="0" width="712" style="border-collapse:collapse;width:534.750000pt;"> <tr style="height:10.5pt;"> <td valign="top" width="1%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="justify" style="background:white;"><font color="#404040" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="32%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">2018</font></b></p> </td> <td valign="top" width="9%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="justify" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="11%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">2017</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="11%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="#404040" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="11%" style="background:white;border-top:solid red 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">2016</font></b></p> </td> </tr> <tr style="height:10.5pt;"> <td valign="top" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="justify" style="background:white;"><font color="#404040" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="32%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Pension</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Health</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="9%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Pension</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="11%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Health</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="11%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Pension</font></b></p> </td> <td nowrap="nowrap" valign="bottom" width="11%" style="background:white;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><b><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Health</font></b></p> </td> </tr> <tr style="height:33.0pt;"> <td colspan="3" valign="bottom" width="34%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:33.0pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;">Nominal Discount Rate for Actuarial Obligation </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:33.0pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:33.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">9.1%</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:33.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">9.3%</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:33.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">9.5%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:33.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">9.7%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:33.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">10.9%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;border-top:solid black 1.0pt;height:33.0pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">10.8%</font></p> </td> </tr> <tr style="height:32.25pt;"> <td colspan="3" valign="bottom" width="34%" style="background:white;border-bottom:solid black 1.0pt;height:32.25pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;">Rate Calculation of Interest Under Assets to the Next Year</font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-bottom:solid black 1.0pt;height:32.25pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:32.25pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">9.1%</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:32.25pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">9.3%</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:32.25pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">9.5%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:32.25pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">9.7%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:32.25pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">10.9%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:32.25pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">10.8%</font></p> </td> </tr> <tr style="height:10.5pt;"> <td colspan="2" nowrap="nowrap" valign="bottom" width="33%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;">Estimated Long-term Inflation Rate</font></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">4.0%</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">4.0%</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">4.0%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">4.0%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">4.5%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">4.5%</font></p> </td> </tr> <tr style="height:10.5pt;"> <td colspan="2" nowrap="nowrap" valign="bottom" width="33%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Estimated Salary Increase Rate</font></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">5.0%</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">5.0%</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">5.0%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">5.0%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">5.0%</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">5.0%</font></p> </td> </tr> <tr style="height:10.5pt;"> <td colspan="2" nowrap="nowrap" valign="bottom" width="33%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">Mortality tables </font></p> </td> <td nowrap="nowrap" valign="bottom" width="1%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td nowrap="nowrap" valign="bottom" width="6%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;"> </font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">AT2000</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">AT2000</font></p> </td> <td valign="bottom" width="9%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">AT2000</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">AT2000</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">AT2000</font></p> </td> <td valign="bottom" width="11%" style="background:white;border-bottom:solid black 1.0pt;height:10.5pt;padding:0in 0in 0in 0in;"> <p align="right" style="background:white;"><font color="black" lang="PT-BR" style="text-autospace:ideograph-numeric ideograph-other;">AT2000</font></p> </td> </tr> </table> |
Provisions for judicial and a_2
Provisions for judicial and administrative proceedings, commitments and other provisions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Provisions for judicial and administrative proceedings, commitments and other provisions (Tables) [Abstract] | |
Breakdown of the balance of Provisions | The breakdown of the balance of “Provisions” is as follows: Thousand of reais 2018 2017 2016 Judicial and administrative proceedings under the responsibility of former controlling stockholders (Note 15) 605,638 707,131 814,925 Judicial and administrative proceedings 9,507,240 8,365,320 7,470,344 Of which: Civil 3,377,338 2,522,005 1,842,549 Labor 3,819,107 3,448,388 3,138,645 Tax and Social Security 2,310,795 2,394,927 2,489,150 Provisions for contingent commitments (Note 23.b) 626,267 - - Others provisions (1) 599,099 991,008 780,595 Total 11,338,244 10,063,459 9,065,864 (1) In 2018, includes R$126.561 (2017 - R$287,446 and 2016 - R$450,284) relating to the expenses of projects aimed at improving operational productivity and efficiency. |
Changes in Provisions | The changes in “Provisions” were as follows: Thousand of reais 2018 Pensions (1) Other Provisions Total Balance at beginning of year 3,923,456 10,063,459 13,986,915 Additions charged to income: Interest expense and similar charges 320,559 - 320,559 Personnel Expenses (Note 40) 8,939 - 8,939 Constitutions / Reversals and Adjustment of provisions (801,332) 3,556,512 2,755,180 Other Comprehensive Income 483,058 - 483,058 Additions to provisions for contingent commitments - (48,246) (48,246) Payments to external funds (594,024) - (594,024) Amount paid - (2,247,172) (2,247,172) Transfer to other assets - actuarial assets (Note 15) 16,998 - 16,998 Transfers, exchange differences and other changes - 13,691 13,691 Balance at end of year 3,357,654 11,338,244 14,695,898 Thousand of reais 2017 Pensions (1) Other Provisions Total Balance at beginning of year 2,710,626 9,065,864 11,776,490 Additions charged to income: Interest expense and similar charges 275,836 - 275,836 Personnel Expenses (Note 40) 20,081 - 20,081 Constitutions / Reversals and Adjustment of provisions 1,723 3,112,684 3,114,407 Other Comprehensive Income 1,028,090 - 1,028,090 Payments to external funds (127,357) - (127,357) Amount paid - (2,123,483) (2,123,483) Transfer to other assets - actuarial assets (Note 15) 14,457 - 14,457 Transfers, exchange differences and other changes - 8,394 8,394 Balance at end of year 3,923,456 10,063,459 13,986,915 Thousand of reais 2016 Pensions (1) Other Provisions Total Balance at beginning of year 2,696,653 8,713,024 11,409,677 Additions charged to income: Interest expense and similar charges (Note 32 & 33) 287,576 - 287,576 Personnel Expenses (Note 40) 24,480 - 24,480 Constitutions / Reversals and Adjustment of provisions 60,309 2,645,764 2,706,073 Payments to pensioners and early retirees with a charge to internal provisions 1,876,888 - 1,876,888 Payments to external funds (2,074,873) - (2,074,873) Amount paid - (2,330,283) (2,330,283) Other Comprehensive Income (153,595) - (153,595) Transfers, exchange differences and other changes (6,812) 37,359 30,547 Balance at end of year 2,710,626 9,065,864 11,776,490 |
Movement of provisions | According to note 2.iii.ix, IFRS 9 requires that the provision for expected credit losses be recorded for contracts of financial guarantees rendered, which have not yet been honored. Provision expense reflecting credit risk should be measured and accounted for when the honor of these guarantees occurs and the client accused does not comply with its contractual obligations. The movement of these provisions in 2018 is as follows: Thousand of reais 2018 Balance at beginning of year (in 1/01/2018 after the initial adoption of the IFRS 9) 674,513 Creation of provision for contingent commitments (48,246) Balance at end of year 626,267 |
Tax assets and liabilities (Tab
Tax assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tax assets and liabilities (Tables) [Abstract] | |
The total charge for the year can be reconciled to accounting profit | The total charge for the year can be reconciled to accounting profit as follows: Thousand of reais 2018 2017 2016 Operating Profit Before Tax 15,909,771 14,513,684 16,383,902 Interest on capital (1) (4,080,000) (3,800,000) (3,850,000) Operating Profit Before Tax 11,829,771 10,713,684 12,533,902 Rates (25% income tax and 20% social contribution tax) (5,323,397) (4,821,158) (5,640,256) PIS and COFINS (net of income and social contribution taxes) (2) (7) (1,490,190) (1,427,960) (1,641,181) Non-taxable/Non-deductible: Equity in affiliates 29,681 32,198 21,392 Goodwill (3) (101,305) (669,963) (734,952) Exchange variation - foreign branches (4) 2,792,995 440,857 (3,561,133) Net Indeductible Expenses of Non-Taxable Income (7) 384,554 194,737 - Adjustments: Constitution of income and social contribution taxes on temporary differences 136,353 1,138,005 605,058 Effects of change in rate of social contribution taxes (5)(6) (90,013) (1,427,667) (613,202) Other adjustments (6) 551,469 1,165,315 2,645,290 Income taxes (3,109,853) (5,375,636) (8,918,984) Of which: Current tax (7) (4,704,293) (4,969,241) (3,575,099) Deferred taxes 1,594,440 (406,395) (5,343,885) Taxes paid in the year (3,668,571) (3,280,230) (4,240,115) (1) Amount distributed to shareholders as interest attributable to shareholders' equity. For accounting purposes, although the interest should be reflected in the income statement for tax deduction, the charge is reversed before the calculation of the net income in the financial statements and deducted from the shareholders' equity since it is considered as dividend. (2) PIS and COFINS are considered a profit-base component (net basis of certain revenues and expenses), therefore and accordingly to IAS 12 they are recorded as income taxes. (3) The difference between the tax basis and accounting basis of goodwill on acquisition of Banco ABN Amro Real S.A. is a permanent and definitive difference. Administration in this case the possibility of loss on impairment or disposal is remote and only applies to the entity as a whole and according to the characteristics of the business combination performed, it is not possible to segregate and identify the business originally acquired. Therefore deferred tax liability is not record. (4) Permanent difference related of foreign currency exchange variation on investments abroad nontaxable/ deductible (see details below). (5) Effect of the rate differential for other non-financial corporations, with a social contribution rate of 9%, as well as the effect of the additional 5% applicable to financial institutions, valid until the end of 2018. (6) In 2016, includes the IAS 21 amounted to R$575.131 (see Hedge of Investments Abroad below) and non-taxable income/non-deductible expenses R$349.120. (7) Includes mainly the tax effect on expenses with donations, revenues from judicial deposit updates and other income and expenses that do not qualify as temporary differences. |
Foreign exchange variations recorded as a result of foreign investments | Tax distinct treatment from such exchange rate differences results in volatility in "Operating Income Before Tax" and "Income taxes". The foreign exchange variations recorded as a result of foreign investments in the years ended on December 31, 2018, 2017 and 2016. 2018 2017 2016 Exchange differences (net) Result generated by the exchange rate variations on the Bank's investment in the Cayman, Luxemburg and EFC Branch 6,673,535 892,863 (7,407,231) Gains (losses) on financial assets and liabilities (net) Result generated by derivative contracts used as hedge (12,540,855) (1,702,557) 14,124,481 Income Taxes Tax effect of derivative contracts used as hedge - PIS / COFINS 255,481 80,170 (656,788) Tax effect of derivative contracts used as hedge - IR / CS 5,611,839 729,524 (6,060,462) b) Effective tax rate calculation |
The effective tax rate | The effective tax rate is as follows: Thousand of reais 2018 2017 2016 Operating Profit Before Tax 15,909,771 14,513,684 16,383,902 Income tax 3,109,853 5,375,636 8,918,984 Effective tax rate 19.55% 37.04% 54.44% |
The Bank recognized the following amounts in consolidated equity | In addition to the income tax recognized in the consolidated income statement, the Bank recognized the following amounts in consolidated equity: Thousand of reais 2018 2017 2016 Tax credited to equity 2,785,330 3,373,984 2,955,552 Measurement of available-for-sale securities - 1,016,121 963,990 Measurement at fair value through other comprehensive income 369,805 - - Measurement of cash flow hedges 2,081 1,063 4,145 Measurement of investment hedges 562,353 562,353 562,353 Defined benefit plan 1,851,091 1,794,447 1,425,064 Tax charged to equity (2,168,758) (2,541,177) (1,795,115) Measurement of available-for-sale securities - (2,426,459) (1,701,732) Measurement at fair value through other comprehensive income (1,997,600) - - Measurement of cash flow hedges (163,038) (111,134) (87,929) Defined benefit plan (8,120) (3,584) (5,454) Total 616,572 832,807 1,160,437 |
Balances of Tax assets - Deferred and Tax liabilities - Deferred | The detail of the balances of “Tax assets - Deferred” and “Tax liabilities - Deferred” is as follows: Thousand of reais 2018 2017 2016 Tax assets: 27,680,578 24,778,078 24,437,112 Of which: Temporary differences (1) 26,416,527 23,375,600 23,398,886 Tax loss carry forwards 846,587 866,579 382,867 Social contribution taxes 18% 417,464 535,899 655,359 Total deferred tax assets 27,680,578 24,778,078 24,437,112 Tax liabilities: 3,031,389 2,496,531 1,268,037 Of which: Excess depreciation of leased assets 123,257 124,909 144,623 Adjustment to fair value of trading securities and derivatives 2,908,132 2,371,622 1,123,414 Total deferred tax liabilities 3,031,389 2,496,531 1,268,037 (1) Temporary differences relate mainly to impairment losses on loans and receivables and provisions for lawsuits and administrative proceedings, and the effect of the fair value of financial instruments. |
Changes in the balances of Tax Assets - Deferred and Tax Liabilities - Deferred | The changes in the balances of “Tax Assets - Deferred” and “Tax Liabilities - Deferred” in the last three years were as follows: Thousand of reais Balances at December 31, 2017 Adjustment to Valuation adjustments (1) Other (2) Acquisition / Merger Balance at December 31, 2018 Tax assets: 24,778,078 1,674,317 (186,260) 1,369,934 44,509 27,680,578 Temporary differences 23,375,600 1,812,744 (186,260) 1,369,934 44,509 26,416,527 Tax loss carry forwards 866,579 (19,992) - - - 846,587 Social contribution taxes 18% 535,899 (118,435) - - - 417,464 Tax liabilities: 2,496,531 79,877 607,773 (153,623) 831 3,031,389 Temporary differences 2,496,531 79,877 607,773 (153,623) 831 3,031,389 Total 22,281,547 1,594,440 (794,033) 1,523,557 43,678 24,649,189 Thousand of reais Balances at December 31, 2016 Adjustment to Valuation adjustments (1) Other (2) Acquisition / Merger Balance at December 31, 2017 Tax assets: 24,437,112 668,483 254,733 (620,401) 38,151 24,778,078 Temporary differences 23,398,886 304,231 254,733 (620,401) 38,151 23,375,600 Tax loss carry forwards 382,867 483,712 - - - 866,579 Social contribution taxes 18% 655,359 (119,460) - - - 535,899 Tax liabilities: 1,268,037 262,088 582,363 378,693 5,350 2,496,531 Temporary differences 1,268,037 262,088 582,363 378,693 5,350 2,496,531 Total 23,169,075 406,395 (327,630) (999,094) 32,801 22,281,547 Thousand of reais Balances at December 31, 2015 Adjustment to Valuation adjustments (1) Other (2) Acquisition / Merger Balance at December 31, 2016 Tax assets: 30,575,504 (5,318,219) (1,580,025) 652,599 107,253 24,437,112 Temporary differences 29,538,257 (5,319,198) (1,580,025) 652,599 107,253 23,398,886 Tax loss carry forwards 381,888 979 - - - 382,867 Social contribution taxes 18% 655,359 - - - - 655,359 312,420 (551,692) 962,406 93,991 - 817,125 Temporary differences 312,420 (551,692) 962,406 93,991 - 817,125 Total 30,263,084 (4,766,527) (2,542,431) 558,608 107,253 23,619,987 (1) It relates to tax recognized in equity. (2) In 2018, it mainly refers to net of deferred taxes amounted to R$1,216,311 (2017 - R$241,708 and 2016 - R$129,147), which have the same counterparty and realization period. |
Expected realization of deferred tax assets | e) Expected realization of deferred tax assets Tax assets Tax liabilities Year Temporary differences Tax loss carry forwards Social contribution taxes 18% Total Temporary differences Total 2019 8,288,397 390,185 390,185 8,288,397 390,185 390,185 2020 7,034,807 402,875 402,875 7,034,807 402,875 402,875 2021 7,416,682 341,120 341,120 7,416,682 341,120 341,120 2022 855,891 236,583 236,583 855,891 236,583 236,583 2023 a 2025 1,588,828 236,583 236,583 1,588,828 236,583 236,583 2026 a 2027 1,474,574 854,424 854,424 1,474,574 854,424 854,424 2028 a 2032 1,021,399 569,619 569,619 1,021,399 569,619 569,619 Total 27,680,578 3,031,389 3,031,389 27,680,578 3,031,389 3,031,389 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other liabilities (Tables) [Abstract] | |
Balance of Other Liabilities | The breakdown of the balance of “Other Liabilities” is as follows: Thousand of reais 2018 2017 2016 Accrued expenses and deferred income (1) 3,193,291 3,036,374 2,925,598 Transactions in transit (3) 925,336 980,501 916,844 Provision for share-based payment 260,739 270,626 212,384 Liabilities for insurance contracts 1,797,167 1,587,603 1,584,303 Other (2) 2,918,615 2,138,817 2,559,970 Total 9,095,148 8,013,921 8,199,099 (1) Corresponds, mainly, to payments to be made - personnel expenses. (2) Includes credits for funds to be released, such as Administratives expenses, amounts due to associates and suppliers. (3) Includes mainly the amounts to transfer to the credit card companies (resources in transit) and amount to release referred to the real estate credits. |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Comprehensive Income (Tables) [Abstract] | |
Breakdown, by type of instrument and geographical origin of the issuer | The breakdown, by type of instrument and geographical origin of the issuer, of Other Comprehensive Income Financial assets measured at fair value through other comprehensive income (IFRS 9) on December 31, 2018 is as follows: Thousand of reais 2018 Revaluation gains Revaluation losses Net revaluation gains (losses) Fair value Debt Instruments Government debt securities 3,917,451 (1,608,673) 2,308,778 85,395,136 Private-sector debt securities 1,546,895 (1,863,092) (316,197) 555 Total 5,464,346 (3,471,765) 1,992,581 85,395,691 |
Breakdown, by type of instrument and geographical origin of the issuer | The breakdown, by type of instrument and geographical origin of the issuer, of Other Comprehensive Income - available-for-sale (IAS 39) on December 31 2017 and 2016 is as follows: Thousand of reais 2017 Revaluation gains Revaluation losses Net revaluation gains (losses) Fair value Debt Instruments Government debt securities 1,616,486 (6,942) 1,609,544 79,462,303 Private-sector debt securities 10,694 (2,227) 8,467 5,254,444 Equity instruments Domestic 230,722 (35,159) 195,563 1,106,637 Of which: Listed 156,236 (5,322) 150,914 965,547 Unlisted 74,486 (29,837) 44,649 141,090 Total 1,857,902 (44,328) 1,813,574 85,823,384 Thousand of reais 2016 Revaluation gains Revaluation losses Net revaluation gains (losses) Fair value Debt Instruments Government debt securities 454,609 (31,288) 423,321 50,384,382 Private-sector debt securities 101,593 (6,501) 95,092 5,445,190 Equity instruments Domestic 220,535 (72,758) 147,777 1,985,473 Of which: Listed 147,844 (50,269) 97,575 1,024,505 Unlisted 72,691 (22,489) 50,202 960,968 Total 776,737 (110,547) 666,190 57,815,045 |
Non-controlling interests (Tabl
Non-controlling interests (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Non-controlling interests (Tables) [Abstract] | |
Balance of Equity - Non-controlling interests | The detail, by company, of the balance of “Equity - Non-controlling interests” is as follows: Thousand of reais 2018 2017 2016 Santander Leasing S.A. Arrendamento Mercantil 447 395 441 Santander Brasil Advisory Services S.A - - 529 Getnet S.A. 249,007 206,105 168,863 Olé Consignado S.A. 116,967 82,432 30,425 Santander Serviços Técnicos, Administrativos e de Corretagem de Seguros - - 318,498 BW Guirapá S.A. - - 68,691 Banco PSA Finance Brasil S.A. 155,399 147,295 138,057 Santander FI SBAC (1) 62,595 - - Rojo Entretenimento S.A. 7,015 - - Return Capital Serviços de Recuperação de Créditos S.A. (Current name of Ipanema Empreendimentos e Participações Ltda.) 1,155 667 - Total 592,585 436,894 725,504 |
Profit attributable to non-controlling interests | Thousand of reais 2018 2017 2016 Profit attributable to non-controlling interests 217,441 213,984 130,355 Of which: Santander Leasing S.A. Arrendamento Mercantil 25 48 41 Santander Brasil Advisory Services S.A - - 34 Getnet S.A. 55,518 48,842 27,209 Olé Consignado S.A. 138,527 53,286 5,432 Santander Serviços Técnicos, Administrativos e de Corretagem de Seguros - 92,365 98,717 BW Guirapá S.A. - (776) (2,957) Banco PSA Finance Brasil S.A. 17,914 19,884 1,879 Santander FI SBAC 4,141 - - Rojo Entretenimento S.A. 166 - - Return Capital Serviços de Recuperação de Créditos S.A. (Current name of Ipanema Empreendimentos e Participações Ltda.) 1,150 335 - (1) The SBAC Fund, is an exclusive investment fund of the Consolidated Santander and many companies has their investments on it. As some companies has a parcel of non-controlling shareholders, this amount refers to the valuation of the equity of that Fund and as a consequence the effect on each company. |
Changes in the balance of Non-controlling interests | The changes in the balance of “Non-controlling interests” are summarized as follows: Thousand of reais 2018 2017 2016 Balance at beginning of year 436,894 725,504 435,062 Additions / disposals (net) due to change in the scope of consolidation (1) (2) 6,849 (660,230) 159,469 Incorporation / Acquisition (4) - 296,184 - Dividends paid / Interest on Capital (60,936) (133,641) (18,140) Capital increase (3) 48,000 - 20,000 Profit attributable to non-controlling interests 217,441 213,984 130,355 Transition Adjustments to the amendments to the IAS 19 - (1,790) (1,604) (106,440) - - Update of SBAC Fund Quotas 58,454 - - Others (7,677) (3,117) 362 Balance at end of year 592,585 436,894 725,504 (1) In 2017 refers mainly to the participation of non-controlling shareholders of BW Guirapá, in 2016 refers to BW Guirapá. (2) In 2017 refers mainly to the balance of Non-controlling Shareholding of Santander Corretora de Seguros. (3) Increase in the share capital of Olé Consignado. (4) In 2017, it refers mainly to the balance of non-controlling interests of Santander Corretora de Seguros, prior to the merger events (Note 3). |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Shareholders' equity (Tables) [Abstract] | |
Capital stock, fully subscribed and paid, is divided into registered book-entry shares with no par value | The capital stock, fully subscribed and paid, is divided into registered book-entry shares with no par value. Thousand of shares 2018 2017 Common Preferred Total Common Preferred Total Brazilian residents 82,043 107,699 189,742 66,207 91,779 157,986 Foreign residents 3,736,652 3,572,137 7,308,789 3,752,488 3,588,057 7,340,545 Total shares 3,818,695 3,679,836 7,498,531 3,818,695 3,679,836 7,498,531 (-) Treasury shares (13,317) (13,317) (26,634) (5,845) (5,845) (11,690) Total outstanding 3,805,378 3,666,519 7,471,897 3,812,850 3,673,991 7,486,841 Thousand of shares 2016 Common Preferred Total Brazilian residents 67,498 92,949 160,447 Foreign residents 3,783,473 3,619,163 7,402,636 Total shares 3,850,971 3,712,112 7,563,083 (-) Treasury shares (25,786) (25,786) (51,572) Total outstanding 3,825,185 3,686,326 7,511,511 b) Dividends and Interest on Capital |
Mandatory dividend | Prior to the annual shareholders meeting, the Board of Directors may resolve on the declaration and payment of dividends on earnings based on (i) financial statements or earning reserves shown in the last financial statement; or (ii) financial statements issued in the period shorter than 6 months, since the total dividends paid in each half of the fiscal year shall do not exceed the amount of capital reserves. These dividends are fully attributed to the mandatory dividend. 2018 Thousand of reais Real per Thousand Shares / Units Common Preferred Units Interest on Capital (1) (6) 600,000 76.3304 83.9634 160.2938 Intercalary Dividends (2) (6) 600,000 76.4956 84.1451 160.6407 Interest on Capital (3) (6) 600,000 76.4985 84.1484 160.6469 Interest on Capital (4) (6) 2,880,000 367.4149 404.1564 771.5713 Intercalary Dividends (5) (6) 1,920,000 244.9433 269.4376 514.3809 Total 6,600,000 (1) Established by the Board of Directors in March 27, 2018, Common Shares - R$64.8808, preferred - R$71.3689 e Units - R$136.2497 net of taxes and were be paid in April 26, 2018, without any remuneration for monetary restatement. (2) Established by the Board of Directors in June 2018, and were be paid on July 27, 2018 without any compensation as monetary correction. (3) Established by the Board of Directors in September 28, 2018, Common Shares - R$65.0237, preferred - R$71.5261 e Units - R$136.5498 net of taxes and were be paid in October 26, 2018, without any remuneration for monetary restatement. (4) Established by the Board of Directors in December 28, 2018, Common Shares - R$312.3027, preferred - R$343.5329 e Units - R$655.8356 net of taxes and will be paid in February 26, 2019, without any remuneration for monetary restatement. (5) Established by the Board of Directors in December 28, 2018, and will be paid on February 26, 2019 without any compensation as monetary correction. (6) The amount of interest on stockholders' equity will be fully charged to the mandatory minimum dividends to be distributed by the Bank for the year 2018. 2017 Thousand of reais Real per Thousand Shares / Units Common Preferred Units Interest on Capital (1) (6) 500,000 63.3780 69.7158 133.0938 Interest on Capital (2) (6) 500,000 63.5280 69.8808 133.4088 Interest on Capital (3) (6) 500,000 63.5917 69.9509 133.5426 Intercalary Dividends (4) (6) 2,500,000 318.2994 350.1293 668.4287 Interest on Capital (5) (6) 2,300,000 292.8354 322.1190 614.9544 Total 6,300,000 (1) Established by the Board of Directors in April 2017, Common Shares - R$53.8713, preferred - R$59.2584 and Units - R$113.1297 net of taxes, and was paid on May 26, 2017 without any compensation as monetary correction. (2) Established by the Board of Directors in July 2017, Common Shares - R$53.9988, preferred - R$59.3987 and Units - R$113.3975 net of taxes, and was paid on August 25, 2017 without any compensation as monetary correction. (3) Established by the Board of Directors in September 2017, Common Shares - R$54.0530, preferred - R$59.4583 and Units - R$113.5113 net of taxes, and was paid on October 26, 2017 without any compensation as monetary correction. (4) Established by the Board of Directors in December 2017, and was paid on February 26, 2018 without any compensation as monetary correction. (5) Established by the Board of Directors in December 2017, Common Shares - R$248.9101, preferred - R$273.8011 and Units - R$522.7112 net of taxes, was paid on February 26, 2018 without any compensation as monetary correction.. (6) The amount of interest on shareholders' equity and interim dividends was fully charged to the mandatory dividends for the year 2017. 2016 Thousand of reais Reais per Thousand Shares / Units Common Preferred Units Intercalary Dividends (1) (5) 500,000 63.4290 69.7719 133.2009 Intermediary Dividends (2) (5) 700,000 88.8309 97.7140 186.5449 Intercalary Dividends (2) (5) 700,000 88.8309 97.7140 186.5449 Interest on Capital (3) (5) 3,350,000 425.1192 467.6311 892.7503 Total 5,250,000 (1) Established by the Board of Directors in June 2016, Common Shares - R$53.9146, preferred - R$59.3061 and Units - R$113.2207 net of taxes. (2) Established by the Board of Directors in December 2016. (3) Established by the Board of Directors in December 2016, Common Shares- R$361.3513, preferred - R$397.4864 and Units - R$758.8377 net of taxes. (4) 'The amount of the interest on capital were fully input into the mandatory dividends for the year 2016 and were be paid from August 26, 2016 without any compensation as monetary correction. (5) The amount of intermediate, intercalary dividends and interest on capital will be fully attributed to supplementary and mandatory dividends for the year 2016 and was paid on February 23, 2017, without any compensation to the restatement. |
Buyback Program | The Buyback has the purpose to (1) maximize the value creation to stockholders by means of an efficient capital structure management; and (2) enable the payment of officers, management level employees and others Bank's employees and companies under its control, according to the Long Term Incentive Plans. The term of the Buyback Program is 12 months counted from November 6, 2018, and will expire on November 5, 2019. 2018 2017 2016 Quantity Quantity Quantity Units Units Units ADRs Treasury shares at beginning of the period 1,773 25,786 7,080 13,138 Shares Acquisitions 15,816 12,768 14,284 - Cancellation of Shares (1)(2)(3) - (32,276) 13,138 (13,138) Payment - Share-based compensation (4,272) (4,505) (8,716) - Treasury shares at end of the period 13,317 1,773 25,786 - Balance of Treasury Shares in thousand of reais (2) R$ 460,550 R$ 148,246 R$ 513,889 R$ 0 R$ 882 R$ 194 R$ 145 R$ 0 Balance of Treasury Shares in thousands of reais R$ 461,432 R$ 148,440 R$ 514,034 R$ 0 Cost/Share Price Units Units Units ADRs Minimum cost R$7.55 R$7.55 R$7.55 US$ 4,37 Weighted average cost R$28.59 R$24.41 R$19.93 US$ 6,17 Maximum cost R$43.84 R$32.29 R$26.81 US$ 10,21 Share Price R$42.70 R$31.88 R$28.32 US$ 8,58 (1) In January 2016 was the transformation of all ADRs that were held in treasury for UNIT's. |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings per share (Tables) [Abstract] | |
Basic earnings per share | Basic earnings per share is calculated by dividing the net profit attributable to the Parent by the weighted average outstanding shares during the year average number, excluding the average number of own shares held during the year and held in treasury. 2018 2017 2016 Profit attributable to the Parent 12,582,477 8,924,064 7,334,563 Earnings per share (Brazilian Reais) Basic earnings per 1,000 shares (Brazilian Reais) Common shares 1,604.34 1,133.43 929.93 Preferred shares 1,764.78 1,246.77 1,022.92 Net Profit attributable - Basic (Brazilian Reais) Common shares 6,108,349 4,332,026 3,560,288 Preferred shares 6,474,128 4,592,038 3,774,275 Weighted average shares outstanding - Basic Common shares 3,807,386 3,822,057 3,828,555 Preferred shares 3,668,527 3,683,145 3,689,696 b) Diluted earning per share |
Diluted earnings per share | The diluted earnings per share is calculated by dividing the net profit attributable to the Parent by the weighted average outstanding shares during the year average number, excluding the average number of own shares held during the year and held in treasury, including the effect of dilutive potential programs long-term compensation. 2018 2017 2016 Profit attributable to the Parent 12,582,477 8,924,064 7,334,563 Earnings per share (Brazilian Reais) Diluted earnings per 1,000 shares (Brazilian Reais) Common shares 1,604.34 1,132.44 929.03 Preferred shares 1,764.78 1,245.69 1,021.93 Net Profit attributable - Basic (Brazilian Reais) Common shares 6,108,349 4,331,955 3,560,222 Preferred shares 6,474,128 4,592,109 3,774,341 Weighted average shares outstanding (in thousand) - Diluted Common shares 3,807,386 3,825,313 3,832,211 Incremental shares from stock options granted under Stock Option Plan - Units (1) - 3,257 3,656 Preferred shares 3,668,527 3,686,401 3,693,352 Incremental shares from stock options granted under Stock Option Plan - Units (1) - 3,257 3,656 (1) The exercise period of the SOP 2013 Long Term Incentive Plan purchase option ended in June 2018. The Bank does not have stock-based compensation plans in force (Note 40) and consequently has no anti-dilution items. |
Fair value of financial asset_2
Fair value of financial assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair value of financial assets and liabilities (Tables) [Abstract] | |
Summary of the fair values of financial assets and liabilities | The following table shows a summary of the fair values of financial assets and liabilities for the period ended December 31, 2018, 2017 and 2016, classified based on several measurement methods adopted by the Bank to determine their fair value: Thousand of reais 2018 Level 1 (1) Level 2 Level 3 Total Financial Assets Measured At Fair Value Through Profit Or Loss 2,660,859 40,540,054 510,887 43,711,800 Debt instruments 2,660,859 - 510,887 3,171,746 Equity instruments - 40,540,054 - 40,540,054 Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading 49,855,112 17,626,932 1,370,270 68,852,314 Debt instruments 49,094,924 432,910 538,635 50,066,469 Equity instruments 757,843 8,490 - 766,333 Derivatives 2,345 17,185,532 831,635 18,019,512 Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss 142,732 619,798 154,947 917,477 Loans and advances to customers - 619,180 - 619,180 Equity instruments 142,732 618 154,947 298,297 Financial Assets Measured At Fair Value Through Other Comprehensive Income 83,283,924 1,442,797 709,956 85,436,677 Debt instruments 83,253,117 1,442,797 699,777 85,395,691 Equity instruments 30,807 - 10,179 40,986 Hedging derivatives (assets) - 343,934 - 343,934 Financial Liabilities Measured At Fair Value Through Profit Or Loss 32,697,510 17,600,024 641,458 50,938,992 Derivatives 1,833 17,600,024 641,458 18,243,315 Short positions 32,695,677 - - 32,695,677 Hedging derivatives (liabilities) - 223,520 - 223,520 (1) There was no transfer between levels 1 and 2. Thousand of reais 2017 Level 2 Level 3 Total Financial assets held for trading 34,380,542 18,059,034 - 52,439,576 Debt instruments 33,891,360 988,321 - 34,879,681 Equity instruments 489,182 588 - 489,770 Trading derivatives - 17,070,125 - 17,070,125 Financial assets designated at fair value through profit or loss 1,593,951 64,738 33,368 1,692,057 Debt instruments 1,593,951 64,738 - 1,658,689 Equity instruments - - 33,368 33,368 Financial assets - available-for-sale 79,301,016 6,382,225 140,143 85,823,384 Debt instruments 78,335,629 6,381,118 - 84,716,747 Equity instruments 965,387 1,107 140,143 1,106,637 Hedging derivatives (assets) - 192,763 - 192,763 Financial liabilities held for trading 32,808,392 16,514,154 - 49,322,546 Derivatives - 16,514,154 - 16,514,154 Short positions 32,808,392 - - 32,808,392 Hedging derivatives (liabilities) - 163,332 - 163,332 Thousand of reais 2016 Level 2 Level 3 Total Financial assets held for trading 59,410,908 25,462,755 - 84,873,663 Debt instruments 59,034,363 960,583 - 59,994,946 Equity instruments 376,545 21,916 - 398,461 Derivatives - 24,480,256 - 24,480,256 Financial assets designated at fair value through profit or loss 1,597,660 76,035 37,509 1,711,204 Debt instruments 1,592,714 76,035 - 1,668,749 Equity instruments 4,946 - 37,509 42,455 Financial assets - available-for-sale 51,160,044 5,703,389 951,612 57,815,045 Debt instruments 50,172,609 5,656,963 - 55,829,572 Equity instruments 987,435 46,426 951,612 1,985,473 Hedging derivatives (assets) - 222,717 - 222,717 Financial liabilities held for trading 31,694,269 19,925,600 - 51,619,869 Derivatives - 19,925,600 - 19,925,600 Short positions 31,694,269 - - 31,694,269 Hedging derivatives (liabilities) - 311,015 - 311,015 |
Fair value hierarchy | The following tables demonstrate the movements during 2018, 2017 and 2016 for the financial assets and liabilities classified as Level 3 in the fair value hierarchy: Thousand of reais Fair Value Gains/ losses (Realized-Not Realized) Transfers in and/ or out of Level 3 Additions / Settled Impact of IFRS 9 Fair value Financial Assets Measured At Fair Value Through Profit Or Loss 33,368 60,887 - 445,991 (29,359) 510,887 Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading - (181,355) 1,264,576 246,051 40,998 1,370,270 Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss - (7,280) - - - 162,227 154,947 Financial Assets Measured At Fair Value Through Other Comprehensive Income 140,143 47,773 645,708 - (123,668) 709,956 Financial Liabilities Measured At Fair Value Through Profit Or Loss - 115,212 710,219 (183,973) - 641,458 Thousand of reais Fair Value Gains/ losses (Realized-Not Realized) Transfers in and/ or out of Level 3 Additions Settled Fair value Financial assets designated at fair value through profit or loss 37,509 (2,555) - (1,586) (1,586) 31,782 Financial assets - available-for-sale 951,612 18,474 - (829,943) (829,943) (689,800) Thousand of reais Fair Value Gains/ losses (Realized-Not Realized) Transfers in and/ or out of Level 3 Additions Settled Fair value Financial assets held for trading - - - - - - Financial assets designated at fair value through profit or loss 573,664 2,806 (14,345) 111 (524,727) 37,509 Financial assets - available-for-sale 857,817 (60,934) (3,085) 461,185 (303,371) 951,612 |
Comparison of the carrying amounts of the Bank's financial assets measured at other than fair value and their respective fair values | Below is a comparison of the carrying amounts of financial assets of the Bank measured by a value other than the fair value and their respective fair values on December 31, 2018, 2017 and 2016: Thousand of reais 2018 Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Money market investments - Brazilian Central Bank (note 4) 15,228,491 15,269,809 - 15,269,809 - Financial Assets Measured At Amortized Cost: Loans and amounts due from credit institutions (note 5) 79,607,001 79,607,197 - 79,607,197 - Loans and advances to customers (note 9) 301,702,207 303,495,240 - - 303,495,240 Financial Assets Measured At Amortized Cost - Debt instruments (note 6) 36,799,509 38,927,356 9,766,162 29,161,194 - Total 433,337,208 437,299,602 9,766,162 124,038,200 303,495,240 Thousand of reais 2017 Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Money market investments - Brazilian Central Bank (note 5) 33,831,521 33,914,021 - 33,914,021 - Investments Held-to-Maturity (note 6) 10,214,454 10,587,117 7,251,246 3,335,871 - Loans and receivables: Loans and amounts due from credit institutions (note 5) 65,209,902 65,209,902 - 65,209,902 - Loans and advances to customers (note 9) 272,420,157 275,647,324 - - 275,647,324 Loans and receivables - Debt instruments (note 6) 17,616,515 17,127,511 - 17,127,511 - Total 399,292,549 402,485,875 7,251,246 119,587,305 275,647,324 Thousand of reais 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Money market investments - Brazilian Central Bank (note 4) 46,371,814 46,341,971 - 46,341,971 - Investments Held-to-Maturity (note 6) 10,048,761 10,555,437 6,942,173 3,613,264 - Loans and receivables: Loans and amounts due from credit institutions (note 5) 65,711,001 65,711,001 - 65,711,001 - Loans and advances to customers (note 9) 252,002,774 253,860,027 - - 253,860,027 Loans and receivables - Debt instruments (note 6) 16,283,259 16,003,885 - 16,003,885 - Total 390,417,609 392,472,321 6,942,173 72,530,121 253,860,027 |
Comparison of the carrying amounts of the Bank's financial liabilities measured at other than fair value and their respective fair values | Following is a comparison of the carrying amounts of Bank´s financial liabilities measured by a value other than fair value and their respective fair values on December 31 , 2018, 2017 and 2016: Thousand of reais 2018 Carrying Amount Fair Value Level 1 Level 2 Level 3 Liabilities Financial liabilities at amortized cost: Deposits from Bacen and credit institutions (note 16) 98,716,735 98,713,988 - 98,713,988 - Customer deposits (note 17) 285,344,281 285,417,696 - 285,417,696 - Marketable debt securities (note 18) 74,626,232 74,783,289 - 4,599,204 70,184,085 Subordinated liabilities (note 19) 9,885,607 9,853,157 - 9,853,157 - Debt Instruments Eligible to Compose Capital (note 20) 9,779,944 9,782,373 - 9,782,373 - Other financial liabilities (note 21) 49,782,780 49,782,780 - - 49,782,780 Total 528,135,579 528,333,283 - 408,366,418 119,966,865 Thousand of reais 2017 Carrying Amount Fair Value Level 1 Level 2 Level 3 Liabilities Financial liabilities at amortized cost: Centrals banks (note 16) 79,068,604 79,068,564 - - 79,068,564 Customers (note 17) 258,482,156 258,576,177 - - 258,576,177 Marketable debt securities (note 18) 70,247,012 70,245,820 - 2,000,552 68,245,268 Subordinated liabilities (note 19) 519,230 528,799 - - 528,799 Debt Instruments Eligible to Compose Capital (note 20) 8,436,901 8,436,901 - 8,436,901 - Other financial liabilities (note 21) 44,260,735 43,003,735 - - 43,003,735 Total 461,014,638 459,859,996 - 10,437,453 449,422,543 Thousand of reais 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Liabilities Financial liabilities at amortized cost: Centrals banks (note 16) 78,319,960 78,323,271 - - 78,323,271 Customers (note 17) 231,079,303 231,125,526 - - 231,125,526 Marketable debt securities (note 18) 99,842,955 99,671,288 - 7,321,870 92,349,418 Subordinated liabilities (note 19) 466,246 452,439 - - 452,439 Debt Instruments Eligible to Compose Capital (note 20) 8,311,918 8,311,918 - 8,311,918 - Other financial liabilities (note 21) 36,879,099 35,622,099 - - 35,622,099 Total 454,899,481 453,506,541 - 15,633,788 437,872,753 |
Operational Ratios (Tables)
Operational Ratios (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Operational Ratios (Tables) [Abstract] | |
Financial Conglomerate | The index is calculated on a consolidated basis, as shown below: Financial Conglomerate Thousand of reais 2018 (1) 2017 (1) 2016 (1) Tier I Regulatory Capital 61,476,715 56,386,001 56,264,021 Principal Capital 56,581,518 52,196,893 52,136,837 Supplementary capital 4,895,197 4,189,108 4,127,184 Tier II Regulatory Capital 4,887,175 4,250,447 4,280,864 Regulatory Capital (Tier I and II) 66,363,890 60,636,448 60,544,885 Required Regulatory Capital 440,562,919 383,132,693 36,669,570 Portion of Credit Risk 358,955,592 324,696,458 31,309,944 Market Risk Portions (2) 39,231,773 25,857,109 2,388,626 Operational Risk Portion (3) 42,375,554 32,579,126 2,971,000 Basel I Ratio 13.95 14.72 15.15 Basel Principal Capital 12.84 13.62 14.04 Basel 15.06 15.83 16.30 (1) Amounts calculated based on the consolidated information provided by the Consolidated Prudential. (2) To calculate the capital allocation for credit risk were considered modifications and inclusions of Bacen Circular 3,714 of August 20, 2014, Bacen Circular 3,770 of October 29,2015, which amending Circular 3,644 of March 4, 2013. (3) Includes portions for market risk exposures subject to variations in rates of foreign currency coupons (PJUR2), price indexes (PJUR3) and interest rate (PJUR1/PJUR4), the price of commodities (PCOM), the price of shares classified as trading portfolios (PACS), and portions for gold exposure and foreign currency transactions subject to foreign exchange (PCAM). |
Interest and similar income (Ta
Interest and similar income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Interest and similar income (Tables) [Abstract] | |
Main items of interest and similar charges accrued | The breakdown of the main items of interest and similar charges accrued in 2018, 2017 and 2016 is as follows: Thousand of reais 2018 2017 2016 Cash and balances with the Brazilian Central Bank 5,095,828 5,953,765 7,315,570 Loans and advances - Credit institutions 2,977,670 5,107,355 7,472,729 Loans and advances - Customers 46,471,507 44,507,217 43,977,981 Debt instruments 13,629,167 13,456,802 14,783,164 Other interest 2,304,221 2,393,210 3,596,633 Total 70,478,393 71,418,349 77,146,077 |
Interest expense and similar _2
Interest expense and similar charges (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Interest expense and similar charges (Tables) [Abstract] | |
Main items of interest expense and similar charges accrued | The breakdown of the main items of interest expense and similar charges accrued in 2018, 2017 and 2016 is as follows: Thousand of reais 2018 2017 2016 Credit institutions deposits 5,367,471 3,782,781 3,369,931 Debt securities issued 13,576,866 19,490,807 25,693,236 Marketable debt securities and subordinated liabilities: Marketable debt securities (note 18) 4,606,949 7,901,199 12,212,922 Subordinated liabilities (note 19) 25,336 52,984 731,594 Debt Instruments Eligible to Compose Capital (note 20) 604,216 495,188 501,748 Pension Plans (note 22.b) 343,137 292,628 290,920 Other interest (1) 4,033,076 4,456,273 3,759,233 Total 28,557,051 36,471,860 46,559,584 (1) In December 31, 2016, includes R$2,057 million related to the reversal of legal obligations. |
Income from equity instruments
Income from equity instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income from equity instruments (Tables) [Abstract] | |
Breakdown of the balance of this item | The breakdown of the balance of this item is as follows: Thousand of reais 2018 2017 2016 Equity instruments classified as: Financial assets held for trading - 18,458 21,489 Financial Assets Measured At Fair Value Through Profit Or Loss 27,047 - - Financial assets - available-for-sale - 64,662 237,056 Financial Assets Measured At Fair Value Through Other Comprehensive Income 5,576 - - Total 32,623 83,120 258,545 |
Fee and commission income (Tabl
Fee and commission income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fee and commission income (Tables) [Abstract] | |
Amount of all fees and commissions accruing | The breakdown of the balance of this item is as follows: Thousand of reais 2018 2017 2016 Collection and payment services: Bills 1,070,258 970,293 789,996 Demand accounts 2,311,925 2,156,384 1,786,175 Cards (Credit and Debit) and Acquiring Services 5,854,503 4,985,306 4,090,766 Checks and other 169,872 172,718 169,100 Orders 622,405 471,763 364,102 Total 10,028,962 8,756,464 7,200,139 Marketing of non-Banking financial products: Investment funds 717,924 819,748 1,014,401 Insurance 2,975,661 2,414,478 2,114,316 Capitalization 402,859 363,516 325,531 Total 4,096,444 3,597,742 3,454,248 Securities services: Securities underwriting and placement 448,914 513,727 357,513 Securities trading 137,617 114,015 115,334 Administration and custody 41,794 191,987 65,667 Asset management 2,173 2,353 1,863 Total 630,497 822,082 540,377 Other: Foreign exchange 934,801 742,676 722,912 Financial guarantees 708,819 672,801 634,375 Other fees and commissions 1,328,928 1,223,778 996,430 Total 2,972,549 2,639,255 2,353,717 Total 17,728,452 15,815,543 13,548,481 |
Fee and commission expense (Tab
Fee and commission expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fee and commission expense (Tables) [Abstract] | |
Amount of all fees and commissions paid or payable in the year | The breakdown of the balance of this item is as follows: Thousand of reais 2018 2017 2016 Commissions assigned to third parties (1) 2,364,119 1,975,379 1,620,812 Other fees and commissions 1,232,174 1,118,296 950,073 Total 3,596,293 3,093,675 2,570,885 |
Gains or losses on financial _2
Gains or losses on financial assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Gains or losses on financial assets and liabilities (Tables) [Abstract] | |
Gains (losses) on financial assets and liabilities (net) includes the amount of the valuation adjustments of financial instruments | The breakdown of the balance of this item, by type of instrument, is as follows: Thousand of reais 2018 2017 2016 Financial Assets Held For Trading (1) - 1,174,111 - 3,166,399 Financial Assets Measured At Fair Value Through Profit Or Loss (138,673) - - Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading (1) (2,764,859) - - Non-Tranding Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss 61,239 - - Other Financial Assets At Fair Value Through Profit Or Loss (2) - 30,694 82,638 Financial Assets Not Measured At Fair Value Through Profit Or Loss (138,104) (122,115) (115,202) Financial Assets available-for-sale Debt instruments (111,750) (156,802) (108,318) Equity instruments (26,354) 34,687 (6,884) Financial Assets Measured At Fair Value Through Other Comprehensive Income Gains or losses from hedge accounting, net 197,595 (113,600) (117,679) Total (2,782,802) 969,090 3,016,156 (1) Includes the exchange hedge of the Bank's interest in Cayman (note 24). (2) Includes the net gain arising from transactions involving debt securities, equity instruments and derivatives included in this portfolio, since the Bank manages its risk in these instruments on a global basis. |
Exchange differences (net) (Tab
Exchange differences (net) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Exchange differences (net) (Tables) [Abstract] | |
Exchange differences | Exchange differences" demonstrate the gains or losses on foreign currency transactions, the differences that arise on translations of monetary items in foreign currencies to the functional currency, and those disclosed on non-monetary assets in foreign currency at the time of their disposal. Thousand of Reais 2018 2017 2016 Revenue with Exchange variations 12,752,765 24,008,382 16,634,809 Expenses with Exchange Variations (15,559,237) (23,403,326) (12,059,995) Total (2,806,471) 605,056 4,574,814 |
Other operating income and ex_2
Other operating income and expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other operating income and expenses (Tables) [Abstract] | |
Breakdown of Other operating income (expense) | The breakdown of "Other operating income (expense)" is as follows: Thousand of reais 2018 2017 2016 Other operating income (1) 556,715 896,279 690,310 Other operating expense (1) (1,281,764) (1,259,338) (1,067,560) Contributions to the Guarantee of Credit Fund - FGC (330,801) (308,954) (247,321) Total (1,055,850) (672,013) (624,571) (1) On December 31, 2018, it consists mainly of Data Processing Expenses in the balance of R$ 67,724 (2017 - 73,664 and 2016 - R$ 61,186), Services Expenses in balance of R$ 26,852 (2017 - revenue of R$ 87,199 and 2016 - R$ 74,322), Indemnity Funds for Benefit - FGB R$ 34,996 (2017 - 5,334 and 2016 - R$ 172,699), Interest on Capital Income R$ 38,006 (2017 - 20,826 and 2016 - R$ 305) and Recovery of Charges and Expenses R$ 92,408 (2017 - 89,409 and 2016 - 72,360). |
Personnel expenses (Tables)
Personnel expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Personnel expenses (Tables) [Abstract] | |
Breakdown of Personnel expenses | The breakdown of “Personnel expenses” is as follows: Thousand of reais 2018 2017 2016 Wages and salaries 5,812,688 5,713,702 5,377,284 Social security costs 1,404,537 1,381,229 1,273,486 Benefits 1,387,078 1,309,314 1,277,781 Defined benefit pension plans (note 22) 8,939 20,081 24,480 Contributions to defined contribution pension plans 131,388 87,099 86,576 Share-based compensation 58,050 87,293 86,963 Training 62,756 58,338 62,518 Other personnel expenses 340,571 280,222 188,177 Total 9,206,007 8,937,278 8,377,265 b) Share-Based Compensation |
Fair Value and Plans Performance Parameters | For accounting of the Local Program plans, an independent consultant promoted simulations based on Monte Carlo methodology, as presented the performance parameters used to calculate the shares to be granted. Such parameters are associated with their respective probabilities of occurrence, which are updated at the close of each year. SOP 2013 (1) Total Shareholder Return (TSR) rank % of Exercisable Shares 1st 100% 2nd 75% 3th 50% (1) The percentage of shares determined at the position of TSR is subject to a penalty according to the implementation of the RoRWA. |
For measurement of the fair value the following premises was used | For fair value measurement the following premises was used: SOP 2013 Method of Assessment Black&Scholes Volatility 40.00% Rate of Dividends 3.00% Vesting Period 3 years Average Exercise Time 5 years Risk-Free Rate 11.80% Probability of Occurrence 60.27% Fair Value of the Option Shares R$5,96 |
Daily pro-rata expenses amounted | On 2018, no pro rata expenses were recorded (2017- no pro rata expenses were recorded and 2016 - R$15,789), related to the Stock Option Certificate (SOP). Date of Commencement Expiration Number of Exercise of Fiscal Date of Fiscal Units Price in Reais Year Granted Employees Year Year Final Balance on December 31, 2016 1,986,258 Exercised options (SOP - 2013) (869,247) 12.84 2013 Executives 06/30/16 06/30/18 Final Balance on December 31, 2017 1,117,011 Exercised options (SOP - 2013) (732,169) 12.84 2013 Executives 06/30/16 06/30/18 Cancelled options (SOP - 2013) (384,842) 12.84 2013 Executives 06/30/16 06/30/18 Final Balance on December 31, 2018 - |
Long Term Incentive Global CRDIV | Long Term Incentive Global CRDIV - Grant 2014 2 years 3 years 4 years Future income Dividend 11.1% 10,80% 9,50% Expected Volatility 32.7% 34,70% 36,90% Volatility comparator 12% - 52% 16% - 56% 16% - 52% Risk-free interest rate 1.7% 2,10% 2,50% Correlation 0.55% 0.55% 0.55% |
2nd Long -Term Incentive Global Plan CRDIV - Grant 2015 | Each executive has a target in reais that was converted to shares of Santander Bank Spain by the price of R$17.473. These shares will be delivered in 2019, with sale restriction of one (1) year after the delivery. Number of Shares Granted Year Employees Data of Commencement of the Fiscal Year Data of Expiry of Fiscal Year 1st Long Term Incentive Global CRDIV - Grant 2014 1,613,057 2014 Executives jan - 2014 dec - 2017 Cancelled Shares (Grantec - 2014) (1,613,057) 2014 Executives jan - 2014 dec - 2017 2nd Long -Term Incentive Global Plan CRDIV - Grant 2015 1,775,049 2016 Executives jan - 2015 dec - 2017 Balance Plans on December 31, 2017 1,775,049 |
Other general administrative _2
Other general administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other general administrative expenses (Tables) [Abstract] | |
Breakdown - Other administrative expenses | The detail of other general administrative expenses is as follows: Thousand of reais 2018 2017 2016 Property, fixtures and supplies 1,330,549 1,284,490 1,278,556 Technology and systems 1,786,416 1,364,720 1,246,809 Advertising 621,645 617,563 486,772 Communications 457,323 593,272 488,799 Per diems and travel expenses 127,277 106,956 133,123 Taxes other than income tax 88,977 122,570 84,932 Surveillance and cash courier services 617,129 630,466 622,362 Insurance premiums 29,434 27,289 21,308 Specialized and technical services 2,089,614 1,901,056 1,744,726 Technical reports 359,468 370,546 437,683 Others specialized and technical services 1,730,146 1,530,510 1,307,043 Other administrative expenses (1) 437,767 534,935 435,758 Total 7,586,131 7,183,317 6,543,145 (1) In December 31, 2018, includes mainly Data Processing Expenses in the balance of R$ 67.724 (2017 - 73.664 and 2016 - R $ 61.186), Service Expenses in the balance of R$ 26.852 (2017 - revenue of R$ 87.199 and 2016 - R$ 74.322), Expenses with Benefit Guarantor Fund - FGB R$ 34.996 (2017 - R$ 5.334 and 2016 - R$ 172.699), Interest on Own Capital R$ 38,006 (2017 - R$ 20.826 and 2016 - R$ 305) and Recovery of Charges and Expenses R $ 92.408 (2017 - R$ 89.409 and 2016 - R$ 72.360). |
Balance of Technical reports | The balance of “Technical reports” includes the fees paid by the consolidated companies to their respective auditors, the detail are as follows: Millions of Reais 2018 2017 2016 Audit of the annual financial statements of the companies audited by external audit (1)(2) (constant scope of consolidation) 19.9 17.5 9.2 Audit Related 0.5 3.9 0.1 Others 0.1 1.3 0.7 Total 20.5 22.7 10.0 |
Gains or losses on non financ_2
Gains or losses on non financial assets and investments, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Gains or losses on non financial assets and investments, net (Tables) [Abstract] | |
Gains (losses) on disposal of assets not classified as non-current assets held for sale the breakdown of the balance | The breakdown of the balance of this item is as follows: Thousand of reais 2018 2017 2016 Gains 11,627 1,798 12,584 Tangible and intangible assets 11,627 1,798 12,575 Investments - - 9 Losses (37,103) (66,100) (8,768) Tangible and intangible assets (37,103) (13,719) (7,547) Investments (1) - (52,381) (1,221) Total (25,476) (64,302) 3,816 (1) In 2017, includes the amount of R$41,999 related to the sale of BW Guirapá I S.A. |
Other disclosures (Tables)
Other disclosures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other disclosures (Tables) [Abstract] | |
Maximum potential amount of future payments | As required, the “maximum potential amount of future payments” represents the notional amounts that could be considered as a loss if there were a total default by the guaranteed parties, without consideration of possible recoveries from collateral held or pledged, or recoveries under recourse provisions. There is no relationship between these amounts and probable losses on these guarantees. In fact, "maximum potential amount of future payments" significantly exceeds inherent losses. Thousand of reais 2018 2017 2016 Maximum potential amount of future payments Contingent liabilities Guarantees and other sureties 39,081,803 40,729,544 32,629,975 Financial guarantees 27,216,418 37,007,057 24,475,507 Performance guarantees 907,856 486,091 532,232 Financial letters of credit 10,860,425 3,110,918 7,462,761 Other 97,104 125,478 159,475 Other contingent exposures 3,178,671 1,915,492 635,055 Documentary Credits 3,178,671 1,915,492 635,055 Total Contingent Liabilities 42,260,474 42,645,036 33,265,030 Commitments Loan commitments drawable by third parties (1) 122,652,229 106,913,219 91,251,198 Total Commitments 122,652,229 106,913,219 91,251,198 Total 164,912,704 149,558,255 124,516,228 |
Detail of off-balance-sheets funds managed by the Bank | The funds managed by Banco Santander not recorded in the balance sheet are as follows: Thousand of reais 2018 2017 2016 Funds under management 1,896,689 1,747,623 1,533,620 Managed Funds 200,366,261 188,728,634 158,734,032 Total 202,262,950 190,476,257 160,267,652 |
Breakdown, by maturity, of the balances of certain items in the consolidated balance sheets | The breakdown, by maturity, of the balances of certain items in the consolidated balance sheets is as follows: 2018 Thousand of reais On Up to 3 to 1 to 3 to After 5 Total Assets: Cash and balances with the Brazilian Central Bank 31,323,554 392,791 - - - - 31,716,345 Debt instruments 27,402 51,255,820 25,903,428 13,186,253 26,367,903 58,692,609 175,433,415 Equity instruments 839,620 34,420 231,576 - - - 1,105,616 Loans and amounts due from credit institutions 57,528,022 8,449,138 844,658 12,739,730 11,371 34,082 79,607,001 Loans and advances to customers - 111,595,396 75,100,836 63,043,973 21,397,689 29,934,313 301,072,207 Derivatives - 13,815,791 1,240,161 1,114,446 1,074,875 1,118,173 18,363,446 Total 89,718,598 185,543,356 103,320,659 90,084,402 48,851,838 89,779,177 607,298,030 2018 Thousand of reais On Up to 3 to 1 to 3 to After 5 Total Liabilities: Financial liabilities at amortized cost: Deposits from credit institutions (1) 1,139 55,872,675 18,564,342 19,850,530 2,598,172 2,135,948 99,022,806 Customer deposits (1) 65,241,618 102,942,180 76,987,570 42,399,934 16,624,469 2,029 304,197,800 Marketable debt securities (1) - 11,104,594 26,741,036 22,479,019 5,854,091 8,447,492 74,626,232 Subordinated liabilities 9,885,607 - - - - - 9,885,607 Debt Instruments Eligible to Compose Capital - - - - - 9,779,944 9,779,944 Other financial liabilities 66,265 31,566,995 35,648 18,086,272 - 27,600 49,782,780 Financial liabilities held for trading: 206,423 7,639,956 8,863,577 32,195,605 604,593 1,428,838 50,938,992 Short positions 206,423 - 1,139,847 31,349,407 - - 32,695,677 Derivatives - 7,639,956 7,723,730 1,069,718 604,593 1,428,838 18,466,835 Total 75,401,052 209,126,400 131,192,173 167,430,485 25,681,325 21,821,851 649,396,673 Difference (assets less liabilities) 14,317,546 (22,963,864) (27,871,514) (45,150,478) 23,170,513 67,957,326 9,459,529 2017 Thousand of reais On Up to 3 to 1 to 3 to After 5 Total Assets: Cash and balances with the Brazilian Central Bank 20,642,321 13,482,432 - - - - 34,124,753 Debt instruments 609,220 1,887,278 21,978,394 31,669,850 19,379,308 45,731,067 121,255,117 Equity instruments 66,187 124,304 305,073 842,090 - 292,121 1,629,775 Loans and amounts due from credit institutions 38,137,344 15,235,629 182,721 10,382,061 18,166 1,253,981 65,209,902 Loans and advances to customers 31,065,824 70,301,530 61,286,539 63,375,203 17,796,364 28,594,697 272,420,157 Derivatives - 426,577 1,034,248 9,470,073 4,357,636 1,974,354 17,262,888 Total 90,520,896 101,457,750 84,786,975 115,739,277 41,551,474 77,846,220 511,902,592 Liabilities: Financial liabilities at amortized cost: Deposits from credit institutions (1) 394,396 21,636,392 44,696,680 6,797,838 2,717,941 3,131,438 79,374,685 Customer deposits (1) 64,512,105 103,511,031 48,339,761 42,494,421 17,176,009 8,814 276,042,141 Marketable debt securities (1) - 14,315,305 35,636,549 17,923,372 1,491,866 879,920 70,247,012 Subordinated liabilities - - 519,230 - - - 519,230 Debt Instruments Eligible to Compose Capital - 114,104 - - - 8,322,797 8,436,901 Other financial liabilities 11,710,943 30,985,465 1,537,689 26,638 - - 44,260,735 Financial liabilities held for trading: Short positions - - 466,000 8,960,806 7,476,079 15,905,507 32,808,392 Derivatives - 769,619 975,945 8,244,193 4,239,198 2,448,531 16,677,486 Total 76,617,444 171,331,916 132,171,854 84,447,268 33,101,093 30,697,007 528,366,582 Difference (assets less liabilities) 13,903,452 (69,874,166) (47,384,879) 31,292,009 8,450,381 47,149,213 (16,463,990) 2016 Thousand of reais On Up to 3 to 1 to 3 to After 5 Total Assets: Cash and balances with the Brazilian Central Bank 14,683,735 11,600,834 - - - - 26,284,569 Debt instruments - 21,709,350 10,136,133 26,674,215 28,135,295 30,838,274 117,493,267 Equity instruments 593,594 48,054 252,087 486,408 21,313 1,024,933 2,426,389 Loans and amounts due from credit institutions 39,961,892 14,450,530 923,308 532,399 34,458 9,808,414 65,711,001 Loans and advances to customer 30,408,851 68,218,474 60,047,442 54,558,381 17,357,244 21,412,382 252,002,774 Loans and Receivables - Debt instruments 822,874 1,287,372 2,960,099 5,044,803 4,472,758 1,695,353 16,283,259 Investments Held-to-Maturity - - 12,378 371,621 1,173,360 8,491,402 10,048,761 Derivatives 620,422 9,209,421 3,571,126 3,813,687 5,481,210 2,007,107 24,702,973 Total 87,091,368 126,524,035 77,902,573 91,481,514 56,675,638 75,277,865 514,952,993 Liabilities: Financial liabilities at amortized cost: Deposits from credit institutions (1) 770,467 40,581,025 23,315,006 8,215,378 2,818,095 2,934,101 78,634,072 Customer deposits (1) 60,919,032 64,154,475 68,505,808 39,630,274 14,003,821 231,767 247,445,177 Marketable debt securities (1) - 21,833,927 56,637,880 20,620,077 312,143 438,928 99,842,955 Subordinated liabilities - - - 466,246 - - 466,246 Debt Instruments Eligible to Compose Capital - 113,995 - - - 8,197,923 8,311,918 Other financial liabilities 3,004,041 33,559,710 356 7,992 - 307,000 36,879,099 Financial liabilities held for trading: Short positions - 743 2,887,723 8,333,584 3,344,083 17,128,136 31,694,269 Derivatives 333,287 8,052,349 2,506,131 2,523,506 5,376,180 1,445,162 20,236,615 Total 65,026,827 168,296,224 153,852,904 79,797,057 25,854,322 30,683,017 523,510,351 Difference (assets less liabilities) 22,064,541 (41,772,189) (75,950,331) 11,684,457 30,821,316 44,594,848 (8,557,358) (1) Includes obligations which may be subject to early payment, being: demand and time deposits, repurchase agreements with clients, LCI and LCA. |
Main foreign currency balances in the consolidated balance sheets, based on the nature of the related items | The main foreign currency balances in the consolidated financial statements, based on the nature of the related items, are as follows: Equivalent Value in Thousand of Reais 2018 2017 2016 Assets Liabilities Assets Liabilities Assets Liabilities Cash and reserves at the Central Bank of Brazil 6,947,282 - 126,022 - 174,605 - Financial asset/liabilities for trading - - 626,101 2,982,336 402,186 371,100 Financial ssets/liabilities measured at fair value through profit or loss held for trading 1,211,296 101,833 - - - - Available-for-sale financial assets - - 11,665,952 - 9,787,622 - Financial assets measured at fair value through other comprehensive income 7,049,727 - - - - - Loans and receivables - - 18,703,454 - 28,061,831 - Financial assets/liabilities measured at amortized cost 17,912,203 35,567,194 - 36,306,000 - 39,465,409 Total 33,120,508 35,669,027 31,121,529 39,288,336 38,426,244 39,836,509 |
The total of the future minimum payments of non-cancellable operating leases | The total of the future minimum payments of non-cancellable operating leases is shown below: 2018 2017 2016 Up to 1 Year 670.553 624.424 646.804 Between1 to 5 Years 1.435.970 1.545.101 1.789.670 More than 5 Years 167.868 288.420 496.802 2.274.391 2.457.945 2.933.276 |
Business segment reporting (Tab
Business segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business segment reporting (Tables) [Abstract] | |
Income statements and other significant data | The income statements and other significant data are as follows: Thousand of reais 2018 (Condensed) Income Statement Commercial Banking Global Wholesale Banking Total NET INTEREST INCOME 39,390,512 2,530,830 41,921,342 Income from equity instruments 9,974 22,649 32,623 Income from companies accounted for by the equity method 65,958 - 65,958 Net fee and commission income 12,537,112 1,595,047 14,132,159 Gains (losses) on financial assets and liabilities (net) and Exchange differences (net) (1) (6,752,093) 1,162,820 (5,589,273) Other operating expense (net) (965,466) (90,384) (1,055,850) TOTAL INCOME 44,285,998 5,220,961 49,506,959 Personnel expenses (8,404,198) (801,809) (9,206,007) Other administrative expenses (7,186,035) (400,096) (7,586,131) Depreciation and amortization (1,637,484) (102,475) (1,739,959) Provisions (net) (1,947,578) (52,026) (1,999,604) Impairment losses on financial assets (net) (12,419,979) (293,456) (12,713,435) Impairment losses on non-financial assets (net) (450,201) (58,109) (508,310) Other non-financial gains (losses) 156,258 - 156,258 OPERATING PROFIT BEFORE TAX (1) 12,396,779 3,512,992 15,909,771 Foreign Exchange Hedge (1) 5,867,320 - 5,867,320 ADJUSTED OPERATING INCOME BEFORE TAX (1) 18,264,099 3,512,992 21,777,091 Thousand of reais 2017 (Condensed) Income Statement Commercial Banking Global Wholesale Banking Total NET INTEREST INCOME 32,392,239 2,554,250 34,946,489 Income from equity instruments 83,120 - 83,120 Income from companies accounted for by the equity method 71,551 - 71,551 Net fee and commission income 11,261,952 1,459,916 12,721,868 Gains (losses) on financial assets and liabilities (net) and Exchange differences (net) (1) (25,628) 1,599,774 1,574,146 Other operating expense (net) (640,522) (31,491) (672,013) TOTAL INCOME 43,142,712 5,582,449 48,725,161 Personnel expenses (8,166,562) (770,716) (8,937,278) Other administrative expenses (7,011,740) (171,577) (7,183,317) Depreciation and amortization (1,560,465) (101,782) (1,662,247) Provisions (net) (3,190,388) (118,851) (3,309,239) Impairment losses on financial assets (net) (11,232,902) (1,105,398) (12,338,300) Impairment losses on non-financial assets (net) (435,960) (20,751) (456,711) Other non-financial gains (losses) (324,385) - (324,385) OPERATING PROFIT BEFORE TAX (1) 11,220,310 3,293,374 14,513,684 Foreign Exchange Hedge (1) 809,694 - 809,694 ADJUSTED OPERATING INCOME BEFORE TAX (1) 12,030,004 3,293,374 15,323,378 Thousand of reais 2016 (Condensed) Income Statement Commercial Banking Global Wholesale Banking Total NET INTEREST INCOME 27,365,857 3,220,636 30,586,493 Income from equity instruments 258,545 - 258,545 Income from companies accounted for by the equity method 47,537 - 47,537 Net fee and commission income 9,580,332 1,397,264 10,977,596 Gains (losses) on financial assets and liabilities (net) and Exchange differences (net) (1) 5,619,356 1,971,614 7,590,970 Other operating expense (net) (611,051) (13,520) (624,571) TOTAL INCOME 42,260,576 6,575,994 48,836,570 Personnel expenses (7,638,124) (739,141) (8,377,265) Other administrative expenses (6,272,987) (270,158) (6,543,145) Depreciation and amortization (1,381,742) (100,897) (1,482,639) Provisions (net) (2,685,278) (39,464) (2,724,742) Impairment losses on financial assets (net) (11,607,468) (1,693,977) (13,301,445) Impairment losses on non-financial assets (net) (114,154) (167) (114,321) Other non-financial gains (losses) 90,889 - 90,889 OPERATING PROFIT BEFORE TAX (1) 12,651,712 3,732,190 16,383,902 Foreign Exchange Hedge (1) (6,717,250) - (6,717,250) ADJUSTED OPERATING INCOME BEFORE TAX (1) 5,934,462 3,732,190 9,666,652 (1) Includes, in the Commercial Bank, the currency hedge of the investment in dollars (a strategy to mitigate the tax effects and the variation of the exchange rate of offshore investments on net income), the result of which is recorded under " on financial assets and liabilities "fully offset in the line of Taxes. |
Other aggregates | 2018 Other aggregates: Commercial Banking Global Wholesale Banking Total Total assets 646,128,672 77,736,335 723,865,007 Loans and advances to customers 236,792,060 64,280,147 301,072,207 Customer deposits 227,689,079 76,508,721 304,197,800 2017 Other aggregates: Commercial Banking Global Wholesale Banking Total Total assets 580,090,402 65,612,637 645,703,039 Loans and advances to customers 217,539,344 54,880,813 272,420,157 Customer deposits 225,926,433 50,115,708 276,042,141 2016 Other aggregates: Commercial Banking Global Wholesale Banking Total Total assets 557,624,385 76,768,855 634,393,240 Loans and advances to customers 191,433,209 60,569,565 252,002,774 Customer deposits 228,923,947 18,521,230 247,445,177 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related party transactions (Tables) [Abstract] | |
Board of Directors' and Executive Board's | The following table shows the Board of Directors' and Executive Board's: Thousand of reais 2018 2017 2016 Fixed Compensation 90,580 83,633 90,169 Variable Compensation - in cash 48,526 42,718 37,479 Variable Compensation - in shares 34,155 34,567 31,802 Others (1) 54,494 11,919 14,580 Total Short-Term Benefits 227,755 172,837 174,030 Variable Compensation - in cash 31,797 31,268 25,581 Variable Compensation - in shares 30,060 34,455 75,069 Total Long-Term Benefits 61,857 65,723 100,650 Total (2) 289,612 238,560 274,680 (1) In the first half of 2018, the Management of Banco Santander decided to carry out an early initiative, which was practiced by the Bank's liberality. (2) Refers to the amount paid by Banco Santander and its subsidiaries to their Managers for positions they hold at Banco and other companies in the Conglomerate Santander. |
Direct interest common shares and preferred shares | The table below shows the direct interest (common shares and preferred shares) as of December 31, 2018, 2017 and 2016: 2018 Common Preferred Total Shares Common Shares Preferred Shares Total Stockholders' (thousand) Shares (%) (thousand) Shares (%) (thousand) Shares (%) Grupo Empresarial Santander, S.L. (1) 1,107,673 29.0% 1,019,645 27.7% 2,127,318 28.4% Sterrebeeck B.V. (1) 1,809,583 47.4% 1,733,644 47.1% 3,543,227 47.2% Banco Santander, S.A. (1) 521,964 13.7% 519,268 14.1% 1,041,232 13.9% Employees 2,986 0.1% 2,987 0.1% 5,973 0.1% Directors (*) 3,930 0.1% 3,930 0.1% 7,860 0.1% Other 359,242 9.4% 387,045 10.5% 746,287 9.9% Total 3,805,378 99.7% 3,666,519 99.6% 7,471,897 99.6% Treasury shares 13,317 0.3% 13,317 0.4% 26,634 0.4% Total 3,818,695 100.0% 3,679,836 100.0% 7,498,531 100.0% Free Float (2) 362,228 9.5% 390,032 10.6% 752,260 10.0% 2017 Common Preferred Total Shares Common Shares Preferred Shares Total Stockholders' (thousand) Shares (%) (thousand) Shares (%) (thousand) Shares (%) Grupo Empresarial Santander, S.L. (1) 1,107,673 29.0% 1,019,645 27.7% 2,127,318 28.4% Sterrebeeck B.V. (1) 1,809,583 47.4% 1,733,644 47.1% 3,543,227 47.2% Banco Santander, S.A. (1) 521,964 13.6% 519,268 14.1% 1,041,232 13.9% Employees 3,551 0.1% 3,556 0.1% 7,107 0.1% Directors (*) 4,016 0.1% 4,016 0.1% 8,032 0.1% Other 366,063 9.6% 393,862 10.7% 759,925 10.1% Total 3,812,850 99.8% 3,673,991 99.8% 7,486,841 99.8% Treasury shares 5,845 0.2% 5,845 0.2% 11,690 0.2% Total 3,818,695 100.0% 3,679,836 100.0% 7,498,531 100.0% Free Float (2) 369,614 9.7% 397,418 10.8% 767,032 10.2% 2016 Common Preferred Total Shares Common Shares Preferred Shares Total Stockholders' (thousand) Shares (%) (thousand) Shares (%) (thousand) Shares (%) Grupo Empresarial Santander, S.L. (1) 1,107,673 28.8% 1,019,645 27.5% 2,127,318 28.1% Sterrebeeck B.V. (1) 1,809,583 47.0% 1,733,644 46.7% 3,543,227 46.9% Banco Santander, S.A. (1) 521,965 13.6% 519,268 14.0% 1,041,233 13.8% Qatar Holding, LLC 207,812 5.4% 207,812 5.6% 415,624 5.5% Employees 3,914 0.1% 3,929 0.1% 7,843 0.1% Members of the Board of Directors (*) (*) (*) (*) (*) (*) Members of the Executive Board (*) (*) (*) (*) (*) (*) Other 174,238 4.5% 202,028 5.5% 376,266 5.0% Total 3,825,185 99.4% 3,686,326 99.4% 7,511,511 99.4% Treasury shares 25,786 0.6% 25,786 0.6% 51,572 0.6% Total 3,850,971 100.0% 3,712,112 100.0% 7,563,083 100.0% Free Float (2) 385,964 10.0% 413,769 11.1% 799,733 10.6% (1) Companies of the Santander Spain Group. (2) Composed by Employees, Qatar Holding and other. |
Principal transactions and balances - Assets | Beginning in 2018, transactions and balances with key management personnel are shown. The main transactions and balance are as follows: Thousand of reais 2018 Parent (1) Joint-controlled Other Related-Party (2) Assets 8,169,537 3,112,734 1,381,770 Financial assets for trading (72,815) 205,337 266,027 Banco Santander, S.A. - Spain (72,815) - - Abbey National Treasury Services Plc (2) - - - Real Fundo de Investimento Multimercado Santillana Credito Privado (2) - - 266,027 Banco RCI Brasil S.A. - 205,337 - Loans and other values with credit institutions - Cash and overnight operations in foreign currency 8,194,590 - 146,988 Banco Santander, S.A. - Spain (3) (5) 8,194,590 - - Banco Santander Totta, S.A. (2) - - 7,883 Abbey National Treasury Services Plc (2) - - 87,260 Bank Zachodni (2) - - 193 Santander UK plc - - 46,615 Banco Santander, S.A. - Mexico (2) - - 5,037 Loans and advances to customers 347 - 966,462 Zurich Santander Brasil Seguros e Previdência S.A. - - 913,875 Zurich Santander Brasil Seguros S.A. - - 45,851 Abbey National Treasury Services Plc (2) - - - Banco Santander Espanha (1) 347 - - Isban Mexico, S.A. de C.V. - - 122 Ingeniería de Software Bancario, S.L. - - - Gesban Servicios Administrativos Globales, S.L. - - 23 Santander Brasil Gestão de Recursos Ltda - - 169 Santander Securities Services Brasil Participações S.A. (2) - - 927 Key Management Personnel (8) - - 5,495 Loans and other values with credit institutions (1) 15,143 2,905,947 2,293 Banco Santander - Spain 15,143 - - Produban Servicios Informáticos Generales, S.L. (Produban Espanha) (2) - - - Banco RCI Brasil S.A. - 2,905,947 - BHJV Assessoria e Consultoria em Gestão Empresarial LTDA - - 10 Produban Brasil Tecnologia - - 2,091 Santander Global Technology, S.L., SOCI - - 192 Banco Santander, S.A. - Uruguay (2) - - - Other Assets 32,272 1,450 - Banco Santander - Spain 32,272 - - Banco RCI Brasil S.A. - 1,450 - Liabilities (23,166,005) (38,380) (2,975,342) Deposits of Brazil Central Bank and deposits of credit institutions (107,084) (36,871) (1,410,619) Banco Santander, S.A. - Spain (4) (107,084) - - Santander Securities Services Brasil DTVM S.A. - - - Santander Brasil Asset (2) - - - Real Fundo de Investimento Multimercado Santillana Credito Privado (2) - - (1,151,399) Banco Santander, S.A. - Uruguay (2) - - - Banco Santander Río S.A. (2) - - (259,220) Banco RCI Brasil S.A. - (36,871) - Securities - - (96,133) Key Management Personnel - - (96,133) Customer deposits - (1,509) (1,134,675) Santander Securities Services Brasil Participações S.A. (2) - - (58,968) Zurich Santander Brasil Seguros e Previdência S.A. (1) - - (234,249) Gestora de Inteligência de Crédito - - (190,674) Santander Brasil Gestão de Recursos Ltda - - (126,988) Webmotors S.A. - (1,509) - Santander Securities Services Brasil DTVM S.A. - - (427,209) Santander Brasil Asset (2) - - (18,639) Key Management Personnel - - (37,889) Others - - (40,059) Other financial liabilities - Dividends and interest on capital Payable (3,922,473) - (5,544) Banco Santander - Spain (609,159) - - Grupo Empresarial Santander, S.L. (1) (1,242,259) - - Sterrebeeck B.V. (1) (2,071,055) - - Banco Madesant - - (1,112) Key Management Personnel (7) - - (4,432) Other Payables (9,603) - (424,504) Banco Santander, S.A. - Spain (9,603) - - Santander Brasil Asset (2) - - (14,476) Produban Servicios Informáticos Generales, S.L. (Produban Espanha) (2) - - - Ingeniería de Software Bancário, S.L. (2) - - - Santander Securities Services Brasil DTVM S.A. - - (4,291) Zurich Santander Brasil Seguros e Previdência S.A. - - (16,924) Key Management Personnel - - (381,292) Others - - (7,521) Debt Instruments Eligible to Compose Capital (19,126,845) - - Banco Santander - Spain (19,126,845) - - Thousand of Reais 2017 Parent (1) Joint-controlled Other Related-Party (2) Assets 8,214,739 1,214,312 926,994 Financial assets for trading - Derivatives net (173,065) - (74,873) Banco Santander, S.A. - Spain (173,065) - - Abbey National Treasury Services Plc (2) - - (71,672) Real Fundo de Investimento Multimercado Santillana Credito Privado (2) - - (3,201) Loans and other values with credit institutions - Cash and overnight operations in foreign currency 8,363,038 - 76,009 Banco Santander, S.A. - Spain (3) (5) 8,363,038 - - Banco Santander Totta, S.A. (2) - - 2,733 Abbey National Treasury Services Plc (2) - - 71,751 Bank Zachodni (2) - - 177 Banco Santander, S.A. - Mexico (2) - - 1,348 Loans and advances to customers 132 9,661 925,858 Zurich Santander Brasil Seguros e Previdência S.A. - - 925,835 Abbey National Treasury Services Plc (2) - - 23 Banco Santander Espanha (1) 132 - - Webmotors S.A. - 9,661 - Loans and other values with credit institutions (1) 23,896 1,203,032 - Banco Santander - Spain 23,896 - - Banco RCI Brasil S.A. - 1,203,032 - Other Assets 738 1,619 - Banco Santander - Spain 738 - - Banco RCI Brasil S.A. - 1,619 - Liabilities (12,360,383) (57,221) - (2,107,677) Deposits of Brazil Central Bank and deposits of credit institutions (387,937) (47,423) (1,862,058) Banco Santander, S.A. - Spain (4) (387,937) - - Santander Securities Services Brasil DTVM S.A. - - (300,074) Santander Brasil Asset - - (16,766) Real Fundo de Investimento Multimercado Santillana Credito Privado (2) - - (1,543,752) Banco Santander, S.A. - Uruguay (2) - - (1,466) Banco RCI Brasil S.A. - (47,423) - Customer deposits - (9,798) (222,473) ISBAN Brasil S.A. (2) - - (20,893) Santander Securities Services Brasil Participações S.A. (2) - - (71,947) Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) (2) - - (34,410) Zurich Santander Brasil Seguros e Previdência S.A. - - (55,935) Santander Brasil Gestão de Recursos Ltda - - (32,334) Webmotors S.A. - (9,798) - Others - - (6,954) Other financial liabilities - Dividends and interest on capital Payable (3,992,820) - (1,132) Banco Santander - Spain (620,264) - - Grupo Empresarial Santander, S.L. (1)(2) (1,264,470) - - Sterrebeeck B.V. (1) (2) (2,108,086) - - Banco Madesant (2) - - (1,132) Other Payables (2,050) - (22,014) Banco Santander - Spain (2,050) - - Santander Brasil Asset - - (69) ISBAN Brasil S.A. (2) - - 237 Produban Servicios Informáticos Generales, S.L. (Produban Espanha) (2) - - (905) Santander Securities Services Brasil DTVM S.A. - - 6,762 Zurich Santander Brasil Seguros e Previdência S.A. - - (27,748) Others - - (291) Debt Instruments Eligible to Compose Capital (7,977,576) - - Banco Santander - Spain (7,977,576) - - Thousand of Reais 2016 Parent (1) Joint-controlled Other Related-Party (2) Assets 10,919,116 794,800 556,778 Financial assets for trading - Derivatives net (184,304) - (400,570) Banco Santander, S.A. - Spain (184,304) - - Abbey National Treasury Services Plc (2) - - (91,828) Real Fundo de Investimento Multimercado Santillana Credito Privado (2) - - (308,742) Loans and other values with credit institutions - Cash and overnight operations in foreign currency 10,900,941 - 94,530 Banco Santander, S.A. - Spain (3) (5) 10,900,941 - - Banco Santander Totta, S.A. (2) - - 1,261 Abbey National Treasury Services Plc (2) - - 92,118 Bank Zachodni (2) - - 117 Banco Santander, S.A. - México (2) - - 1,034 Loans and advances to customers - 136,354 862,818 Zurich Santander Brasil Seguros e Previdência S.A. - - 862,553 Webmotors S.A. - 136,354 - Santander Brasil Gestão de Recursos Ltda - - 265 Loans and other values with credit institutions (1) 25,546 656,806 - Banco Santander - Spain 25,546 - - Banco RCI Brasil S.A. - 656,806 - Other Assets 176,933 1,640 - Banco Santander - Spain 176,933 - - Banco RCI Brasil S.A. - 1,640 - Liabilities (11,984,199) (106,527) (1,222,556) Deposits of Brazil Central Bank and deposits of credit institutions (327,466) (40,202) (980,702) Banco Santander Espanha (4) (327,466) - - Santander Securities Services Brasil DTVM S.A. - - (208,059) Santander Brasil Asset - - (12,079) Real Fundo de Investimento Multimercado Santillana Credito Privado (2) - - (757,874) Banco Santander, S.A. - Uruguay (2) - - (2,158) Banco RCI Brasil S.A. - (40,202) - Others - - (532) Customer deposits - (66,325) (189,794) ISBAN Brasil S.A. (2) - - (22,232) Santander Securities Services Brasil Participações S.A. (2) - - (52,484) Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) (2) - - (19,653) Zurich Santander Brasil Seguros e Previdência S.A. - - (44,840) Santander Brasil Gestão de Recursos Ltda - - (39,361) Webmotors S.A. - (66,325) - Others - - (11,224) Other financial liabilities - Dividends and interest on capital Payable (3,794,130) - (16,494) Banco Santander, S.A. - Spain (589,227) - - Grupo Empresarial Santander, S.L. (1) (2) (1,201,612) - - Sterrebeeck B.V. (1) (2) (2,003,291) - - Banco Madesant (2) - - (1,075) Santusa Holding, S.L. (2) - - (15,419) Other Payables (2,954) - (35,566) Banco Santander - Espanha (2,954) - - Santander Brasil Asset - - (70) ISBAN Brasil S.A. (2) - - (339) Santander Securities Services Brasil DTVM S.A. - - (4,430) Zurich Santander Brasil Seguros e Previdência S.A. - - (30,684) Outros - - (43) Debt Instruments Eligible to Compose Capital (7,859,649) - - Banco Santander - Spain (7,859,649) - - |
Principal transactions and balances - Income | (8) The balance with key management personnel refers to operations contracted before the term of the mandates. Thousand of Reais 2018 Parent (1) Joint-controlled Other Related-Party (2) Income (972,799) 192,889 1,323,622 Interest and similar income - Loans and advances to customers - - 461 Key Management Personnel - - 461 Interest and similar income - Loans and amounts due from credit institutions 136,250 136,666 1,080 Banco Santander, S.A. - Spain 136,250 - - Banco RCI Brasil S.A. (6) - 136,666 - Abbey National Treasury Services Plc - - 157 Cibrasec - - 923 Interest expense and similar charges - Customer deposits - (92) (23,146) ISBAN Brasil S.A. - - (90) Santander Brasil Gestão de Recursos Ltda - - (8,329) Santander Cultural - - (36) Gestora de Inteligência de Crédito - - (5,743) Webmotors S.A. - (92) - Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) - - (215) Key Management Personnel - - (8,707) Others - - (27) Interest expense and similar charges - Deposits from credit institutions (6,889) (5,871) (134,896) Banco Santander, S.A. - Spain (6,889) - - Banco RCI Brasil S.A. (6) - (5,871) - Santander Securities Services Brasil Participações S.A. (2) - - (26,378) SAM Brasil Participações - - (47) Real Fundo de Investimento Multimercado Santillana Credito Privado - - (102,928) Santander Securities Services Brasil DTVM S.A. (2) - - (4,442) Santander Asset Management, S.A. SGIIC. - - (1,101) Fee and commission income (expense) 6,213 32,960 2,653,014 Banco Santander, S.A. - Spain 6,213 - - Banco RCI Brasil S.A. (6) - 31,981 - Banco Santander International - - 30,789 Webmotors S.A. - 979 - Zurich Santander Brasil Seguros S.A. - - 300,868 Zurich Santander Brasil Seguros e Previdência S.A. - - 2,302,295 Key Management Personnel - - 355 Others - - 18,707 Gains (losses) on financial assets and liabilities (net) and exchange differences (net) (680,903) 29,226 (199,985) Banco Santander, S.A. - Spain (680,903) - - Real Fundo de Investimento Multimercado Santillana Credito Privado - - (210,324) Abbey National Treasury Services Plc - - (17,726) Santander Securities Services Brasil DTVM S.A. (2) - - 1,312 Zurich Santander Brasil Seguros e Previdência S.A. - - 40,305 Zurich Santander Brasil Seguros S.A. - - - Banco RCI Brasil S.A. (6) - 29,226 - Key Management Personnel - - 239 Others - - (13,791) Administrative expenses and Amortization - - (952,432) Banco Santander, S.A. - Spain - - - ISBAN Brasil S.A. - - (14,210) Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) - - (33,567) ISBAN Chile S.A. - - (24) Aquanima Brasil Ltda. - - (30,021) TECBAN - Tecnologia Bancaria Brasil - - (313,433) Produban Servicios Informaticos Generales, S.L. - - - Ingeniería de Software Bancario, S.L. - - - Santander Securities Services Brasil DTVM S.A. (2) - - (46,884) Santander Global Technology, S.L., SOCI - - (175,466) Key Management Personnel - - (289,612) Others - - (49,216) Others Administrative expenses - Donation - - (20,013) Santander Cultural - - (2,748) Fundacao Santander - - (1,330) Instituto Escola Brasil - - - Fundação Sudameris - - (15,935) Debt Instruments Eligible to Compose Capital (427,470) - - Banco Santander Espanha (2)(8) (427,470) - - Thousand of Reais 2017 Parent (1) Joint-controlled Other Related-Party (2) Income 389,663 126,781 1,210,444 Interest and similar income - Loans and amounts due from credit institutions 87,217 87,381 1,417 Banco Santander, S.A. - Spain 87,217 - - Banco RCI Brasil S.A. (6) - 87,381 - Abbey National Treasury Services Plc - - 879 Cibrasec - - 538 Interest expense and similar charges - Customer deposits - (4,486) (41,026) ISBAN Brasil S.A. - - (2,145) Banco Santander, S.A. - Spain - - (6,190) Santander Brasil Gestão de Recursos Ltda - - (6,636) Santander Cultural - - (24,344) Real Fundo de Investimento Multimercado Santillana Credito Privado - - (69) Webmotors S.A. - (4,486) - Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) - - (1,547) Others - - (95) Interest expense and similar charges - Deposits from credit institutions (13,038) (3,026) (113,569) Banco Santander, S.A. - Spain (13,038) - - Banco RCI Brasil S.A. (6) - (3,026) - Santander Securities Services Brasil DTVM S.A. - - (95) SAM Brasil Participações - - (112,211) Real Fundo de Investimento Multimercado Santillana Credito Privado - - (1,263) Fee and commission income (expense) (5,099) 14,999 2,453,179 Banco Santander - Espanha (5,099) - - Banco RCI Brasil S.A. (6) - 14,996 - Banco Santander International - - 20,480 Webmotors S.A. - 3 - Zurich Santander Brasil Seguros S.A. - - 295,508 Zurich Santander Brasil Seguros e Previdência S.A. - - 2,134,755 Others - - 2,436 Gains (losses) on financial assets and liabilities (net) and exchange differences (net) 592,919 31,913 (39,534) Banco Santander, S.A. - Spain 592,919 - - Real Fundo de Investimento Multimercado Santillana Credito Privado - - (79,480) Abbey National Treasury Services Plc - - 23,843 Banco RCI Brasil S.A. (6) - 31,913 - Santander Securities Services Brasil DTVM S.A. (2) - - (26,102) Santander Investment Securities Inc. - - (13,492) Zurich Santander Brasil Seguros e Previdência S.A. - - 52,981 Zurich Santander Brasil Seguros S.A. - - 1,788 Others - - 928 Administrative expenses and Amortization (50,271) - (1,028,750) Banco Santander, S.A. - Espanha (50,271) - - ISBAN Brasil S.A. - - (337,161) Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) - - (242,191) ISBAN Chile S.A. - - (23) Aquanima Brasil Ltda. - - (25,638) TECBAN - Tecnologia Bancaria Brasil - - (262,046) Produban Servicios Informaticos Generales, S.L. - - (46,494) Ingeniería de Software Bancario, S.L. - - (70,385) Santander Securities Services Brasil DTVM S.A. (2) - - (42,603) Outros - - (2,209) Others Administrative expenses - Donation - - (21,273) Santander Cultural - - (3,513) Fundacao Santander - - (1,837) Instituto Escola Brasil - - (873) Fundação Sudameris - - (15,050) Debt Instruments Eligible to Compose Capital (222,065) - - Banco Santander Espanha (2)(8) (222,065) - - Thousand of Reais 2016 Parent (1) Joint-controlled Other Related-Party (2) Income (798,022) 136,111 1,197,489 Interest and similar income - Loans and amounts due from credit institutions 39,677 114,909 396 Banco Santander, S.A. - Spain 39,677 - - Banco RCI Brasil S.A. (6) - 114,909 - Abbey National Treasury Services Plc - - 396 Interest expense and similar charges - Customer deposits (4,192) (26,996) (49,420) ISBAN Brasil S.A. - - (3,560) Banco Santander Espanha (4,192) - - Santander Brasil Gestão de Recursos Ltda - - (12,417) Santander Cultural - - (11) Real Fundo de Investimento Multimercado Santillana Credito Privado - - (31,097) Webmotors S.A. - (26,996) - Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) - - (2,117) Others - - (218) Interest expense and similar charges - Deposits from credit institutions (512) (10,959) (115,458) Banco Santander, S.A. - Spain (512) - - Banco RCI Brasil S.A. (6) - (10,959) - Santander Securities Services Brasil DTVM S.A. - - (20,979) SAM Brasil Participações - - (133) Real Fundo de Investimento Multimercado Santillana Credito Privado - - (88,467) Santander Securities Services Brasil Participações S.A. (2) - - (4,119) Santander Asset Management, S.A. SGIIC. - - (1,760) Fee and commission income (expense) 5,334 20,133 1,955,255 Banco Santander - Espanha 5,334 - - Banco RCI Brasil S.A. (6) - 19,211 - Banco Santander International - - 20,959 Santander Securities Services Brasil DTVM S.A. - - 1,896 Webmotors S.A. - 922 - Zurich Santander Brasil Seguros S.A. - - 218,773 Zurich Santander Brasil Seguros e Previdência S.A. - - 1,711,138 Others - - 2,489 Gains (losses) on financial assets and liabilities (net) and exchange differences (net) (613,168) 39,024 267,983 Banco Santander, S.A. - Spain (613,168) - - Real Fundo de Investimento Multimercado Santillana Credito Privado - - 257,475 Abbey National Treasury Services Plc - - 38,274 Banco RCI Brasil S.A. (6) - 39,024 - Santander Securities Services Brasil DTVM S.A. - - (16,038) Santander Investment Securities Inc. - - (15,115) Others - - 3,387 Administrative expenses and Amortization - - (840,739) ISBAN Brasil S.A. - - (290,430) Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) - - (209,253) ISBAN Chile S.A. - - (26) Aquanima Brasil Ltda. - - (24,557) TECBAN - Tecnologia Bancaria Brasil - - (213,194) Produban Servicios Informaticos Generales, S.L. - - (21,525) Ingeniería de Software Bancario, S.L. - - (42,519) Santander Securities Services Brasil DTVM S.A. - - (35,882) Others - - (3,353) Others Administrative expenses - Donation - - (20,528) Santander Cultural - - (2,737) Fundacao Santander - - (3,452) Instituto Escola Brasil - - (939) Fundação Sudameris - - (13,400) Debt Instruments Eligible to Compose Capital (225,161) - - Banco Santander, S.A. - Spain (2) (225,161) - - (1) Banco Santander (Brasil) S.A. is indirectly controlled by Banco Santander Spain, through its subsidiary Grupo Empresarial Santander, S.L. and Sterrebeeck B.V. (2) Refers to the Company's subsidiaries (Banco Santander, S.A .- Spain). (3) Refers the profit on disposal of the company MS Participações. (4) Refers the profit on disposal of the company Santander Brasil Asset Management. (5) Refers the profit on disposal of the company Santander Securities Services Brasil DTVM S.A. (6) In February, 2016 the Cia de Crédito, Financiamento e Investimentos Renault was acquired by Banco RCI Brasil. |
Risk management (Tables)
Risk management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Risk management (Tables) [Abstract] | |
The table shown in note 9.b shows the portfolio by the internal risk rating levels and their probability of default | The table shown in note 9.b shows the portfolio by the internal risk rating levels and their probability of default. Thousand of reais 2018 2017 2016 By maturity Less than 1 Year 186,373,511 174,247,968 161,664,232 Between 1 and 5 years 99,309,551 82,513,030 79,356,369 More than 5 years 36,250,128 31,068,215 27,416,955 Loans and advances to customers, gross 321,933,190 287,829,213 268,437,556 By internal classification of risk Low 240,440,294 226,098,497 207,889,639 Medium-low 50,485,682 33,635,378 32,104,168 Medium 11,967,262 10,423,293 10,940,879 Medium-High 7,722,198 8,215,024 6,976,969 High 11,317,754 9,457,021 10,525,901 Loans and advances to customers, gross 321,933,190 287,829,213 268,437,556 |
Portfolios for which reference external information represent significant data to measure the expected credit losses | To the portfolios which the Bank presents limited historic data, reference external information are used to complement internal available data. The portfolios for which reference external information represent significant data to measure the expected credit losses are present below. 2018 Probability of default Default loss Exposure Commercial and industrial 146,293,616 8% 42% Real Estate Credit - construction 36,515,352 4% 12% Individual loans 137,287,593 8% 64% Leasing 1,836,629 5% 32% |
Main indicators of credit | Below is a table showing the evolution of the main credit indicators. 2018 2017 2016 Credit risk exposure - customers (Thousand of Reais) 364,193,664 330,474,249 301,702,586 Loans and advances to customers, gross (note 9) 321,933,190 287,829,213 268,437,556 Contingent Liabilities - Guarantees and other sureties (note 44.a) 42,260,474 42,645,036 33,265,030 Non-performing loans ratio (%) - unaudited 6.98% 6.65% 7.04% Impairment coverage ratio (%) - unaudited 102.42% 95.39% 96.31% Specific credit loss provisions, net of RAWO (*) (Thousand of Reais) - unaudited 22,969,315 18,261,638 18,191,126 Cost of credit (% of risk) - unaudited 3.90% 3.98% 4.52% Data prepared on the basis of management criteria and the accounting criteria of the controller unit. (*) RAWO = Recoveries of Assets Derecognized. |
Relationships between macroeconomic variables and credit risks and credit losses | The Bank identified and documented the main determinants of credit risk and credit losses for each portfolio of financial instruments and, using a historical data analysis, estimated the relationships between macroeconomic variables and credit risks and credit losses. 2018 Unemployment rates 11.4% Interest Rates 6.5% increase in GDP 1.8% |
Position of accounts subject to interest rate risk | The following table aggregates by product the cash flows of the operations of our perimeter of companies that have interest income. The transactions are presented by the book balance at the closing date of the years 2018, 2017 and 2016. It is not associated with the risk management of changes in interest rates or indexer mismatches, which is done by monitoring metrics of Marketplace. However, it allows to evaluate the concentrations of term and possible risks and below it, the balances of the same products are presented at the redemption value at maturity, except for the line dealing with receivables and obligations linked to derivative contracts. 2018 Position of accounts subject to interest rate risk In millions of Reais 0 to 30 days 31 to 180 days 181 to 365 days 1 to 5 years Above 5 years Total Interest-earning assets: Financial Assets Held For Trading 8,193 6,155 12,013 67,606 25,964 119,931 Debt instruments 5,359 5,192 8,294 58,363 23,460 100,668 Equity instruments 807 - - - - 807 Trading derivatives 2,027 963 3,719 9,243 2,504 18,456 Other Financial Assets At Fair Value Through Profit Or Loss 677 9,091 368 16,702 3,577 30,415 Debt instruments 379 9,091 368 16,702 3,577 30,117 Equity instruments 298 - - - - 298 Non-Current Assets Held For Sale 24 521 89 3,603 3,826 8,063 Reserves from Brazilian Central Bank 70,103 - - - - 70,103 Loans and Receivables 27,387 101,441 35,900 85,318 60,966 311,012 Total 106,384 117,208 48,370 173,229 94,333 539,524 Interest-bearing liabilities: Deposits from credit institutions 200,818 47,172 65,606 71,413 5,343 390,352 Subordinated debts 9,857 - - - 9,687 19,544 Marketable debt securities 13,353 20,875 14,612 30,138 9,715 88,693 Trading derivatives 1,104 1,370 3,257 9,673 3,322 18,726 Short positions 32,440 - - - - 32,440 Total 257,572 69,417 83,475 111,224 28,067 549,755 2017 Position of accounts subject to interest rate risk In millions of Reais 0 to 30 days 31 to 180 days 181 to 365 days 1 to 5 years Above 5 years Total Interest-earning assets: Financial Assets Held For Trading 5,541 1,779 6,556 29,968 10,194 54,038 Debt instruments 653 890 5,739 16,709 8,148 32,139 Equity instruments 490 - - - - 490 Trading derivatives 4,398 889 818 13,259 2,046 21,410 Available-For-Sale Financial Assets 2,032 1,272 17,092 46,502 23,711 90,609 Debt instruments 925 1,272 17,092 46,502 23,711 89,503 Equity instruments 1,107 - - - - 1,107 Other Financial Assets At Fair Value Through Profit Or Loss 72 13 50 479 1,008 1,622 Debt instruments 38 13 50 479 1,008 1,589 Equity instruments 33 - - - - 33 Non-Current Assets Held For Sale 80 168 222 3,082 7,040 10,593 Reserves from Brazilian Central Bank 59,051 - - - - 59,051 Loans and Receivables 22,033 81,275 34,430 86,645 71,453 295,835 Total 88,809 84,507 58,351 166,677 113,406 511,750 Interest-bearing liabilities: Deposits from credit institutions 150,719 46,254 62,605 69,778 5,119 334,474 Subordinated debts - 789 257 7,784 - 8,829 Marketable debt securities 4,436 36,208 12,313 15,544 847 69,348 Trading derivatives 4,618 659 504 12,243 2,285 20,310 Short positions 32,531 - - - - 32,531 Total 192,304 83,909 75,679 105,349 8,251 465,492 2016 Position of accounts subject to interest rate risk In millions of Reais 0 to 30 days 31 to 180 days 181 to 365 days 1 to 5 years Above 5 years Total Interest-earning assets: Financial Assets Held For Trading 26,960 5,242 4,593 31,938 14,917 83,650 Debt instruments 20,232 2,370 2,711 23,479 10,335 59,127 Equity instruments 397 - - - - 397 Trading derivatives 6,331 2,872 1,882 8,459 4,582 24,126 Available-For-Sale Financial Assets 2,939 1,350 1,761 42,683 11,046 59,779 Debt instruments 954 1,350 1,761 42,683 11,046 57,794 Equity instruments 1,985 - - - - 1,985 Other Financial Assets At Fair Value Through Profit Or Loss 80 14 50 486 981 1,611 Debt instruments 38 14 50 486 981 1,569 Equity instruments 42 - - - - 42 Non-Current Assets Held For Sale 79 168 220 2,920 6,549 9,936 Reserves from Brazilian Central Bank 58,594 - - - - 58,594 Loans and Receivables 16,435 99,924 32,590 79,467 68,120 296,536 Total 105,087 106,698 39,214 157,494 101,613 510,106 Interest-bearing liabilities: Deposits from credit institutions 135,457 49,973 46,686 69,605 4,987 306,708 Subordinated debts - 268 255 8,260 - 8,783 Marketable debt securities 6,214 40,229 33,336 23,647 495 103,921 Trading derivatives 6,046 1,308 1,268 7,123 4,167 19,912 Short positions 31,551 - - - - 31,551 Total 179,268 91,778 81,545 108,635 9,649 470,875 |
Position of accounts subject to currency risk | Currency Risk 2018 In millions of Reais Asset: Dollar Euro Others Total Cash/Applications/Debt Instruments 348,797 - - 348,797 Loans and advances to customers 4,505 155 - 4,660 Investments in Foreign Subsidiaries and Dependence 45,345 3,390 - 48,735 Derivatives 231,240 18,163 2,490 251,893 Others 23,619 1,974 42 25,635 Total 653,506 23,682 2,532 679,720 Liabilities: Dólar Euro Outros Total Funding in foreign currency 390,418 462 145 391,025 Derivatives 262,396 24,809 2,391 289,596 Others 1,007 - - 1,007 Total 653,821 25,271 2,536 681,628 2017 In millions of Reais Asset: Dollar Euro Others Total Cash/Applications/Debt Instruments 54,380 11,684 10,377 76,442 Loans and advances to customers 3,818 321 - 4,139 Investments in Foreign Subsidiaries and Dependence 36,613 3,010 - 39,623 Derivatives 262,092 45,317 9,640 317,049 Others 46,200 13,028 6,237 65,465 Total 403,102 73,361 26,254 502,717 Liabilities: Dólar Euro Outros Total Funding in foreign currency 32,962 3,047 17 36,025 Derivatives 277,358 54,633 9,294 341,284 Others 93,821 15,975 17,068 126,864 Total 404,140 73,654 26,378 504,173 2016 In millions of Reais Asset: Dollar Euro Others Total Cash/Applications/Debt Instruments 4,839 - - 4,839 Loans and advances to customers 3,485 - - 3,485 Investments in Foreign Subsidiaries and Dependence 34,337 2,662 - 36,999 Derivatives 166,626 24,173 11,241 202,040 Others 25,273 1,020 - 26,293 Total 234,560 27,855 11,241 273,656 Liabilities: Dólar Euro Outros Total Funding in foreign currency 32,255 640 - 32,895 Derivatives 183,277 27,973 11,426 222,676 Others 19,198 - 104 19,302 Total 234,730 28,613 11,530 274,873 |
Customers Funding | The Bank has different funding sources, both in products and mix of clients, with a healthy distribution between the segments. The total of clients resources is currently in R$ 395 billion and presented an increase comparing with 2017 amount, highlighting the increasing of time deposit funding and the keeping of financial letters inventory. In millions of Reais Customers Funding 2018 2017 0 a 30 days Total % 0 a 30 days Total % Demand deposits 18,854 18,854 100% 15,252 15,252 100% Savings accounts 46,068 46,068 100% 40,570 40,570 100% Time deposits 49,771 190,971 26% 39,549 170,570 23% Interbank deposit 863 4,118 21% 622 3,244 19% Funds from acceptances and issuance of securities 3,681 70,110 5% 4,436 69,348 6% Borrowings and Onlendings 5,181 45,936 11% 5,606 48,304 12% Subordinated Debts / Debt Instruments Eligible to Compose Capital 9,857 19,666 50% - 8,829 0% Total 134,275 395,723 34% 106,035 356,117 30% In millions of Reais Customers Funding 2016 0 a 30 days Total % Demand deposits 15,794 15,794 100% Savings accounts 35,901 35,901 100% Time deposits 24,452 150,686 16% Interbank deposit 944 2,379 40% Funds from acceptances and issuance of securities 6,304 105,120 6% Borrowings and Onlendings 4,114 46,124 9% Subordinated Debts / Debt Instruments Eligible to Compose Capital - 8,784 0% Total 87,509 364,788 23% |
Non-Discounted Future Flows Except Derivatives | Assets and liabilities in accordance with the remaining contractual maturities, considering the undiscounted flows are as follows: 2018 Non-Discounted Future Flows Except Derivatives In millions of Reais 0 to 30 days 31 to 180 days 181 to 365 days 1 to 5 years Above 5 years Total Interest-earning assets: Financial Assets Held For Trading 7,388 6,199 12,162 80,590 52,584 158,923 Debt instruments 5,361 5,236 8,443 71,347 50,080 140,467 Trading derivatives 2,027 963 3,719 9,243 2,504 18,456 Other Financial Assets At Fair Value Through Profit Or Loss 379 9,230 379 18,666 6,037 34,691 Debt instruments 379 9,230 379 18,666 6,037 34,691 Non-Current Assets Held For Sale 24 558 126 3,904 5,119 9,731 Reserves from Brazilian Central Bank 70,103 - - - - 70,103 Loans and Receivables 29,234 111,216 45,564 116,107 85,637 387,758 Total 107,128 127,203 58,231 219,267 149,377 661,206 Interest-bearing liabilities: Deposits from credit institutions 198,259 46,926 67,142 79,161 8,819 400,307 Subordinated Debts / Debt Instruments Eligible to Compose Capital 9,857 - - - 9,687 19,544 Marketable debt securities 13,395 21,343 15,290 33,627 9,717 93,372 Trading derivatives 1,104 1,370 3,257 9,673 3,322 18,726 Short positions 32,440 - - - - 32,440 Total 255,055 69,639 85,689 122,461 31,545 564,389 2017 Non-Discounted Future Flows Except Derivatives In millions of Reais 0 to 30 days 31 to 180 days 181 to 365 days 1 to 5 years Above 5 years Total Interest-earning assets: Financial Assets Held For Trading 5,051 1,788 6,737 32,841 18,848 65,265 Debt instruments 654 899 5,919 19,582 16,801 43,856 Trading derivatives 4,398 889 818 13,259 2,046 21,410 Available-For-Sale Financial Assets 925 1,283 12,695 56,167 50,329 121,399 Debt instruments 925 1,283 12,695 56,167 50,329 121,399 Other Financial Assets At Fair Value Through Profit Or Loss 38 13 51 543 1,994 2,640 Debt instruments 38 13 51 543 1,994 2,640 Non-Current Assets Held For Sale 81 169 227 3,370 9,573 13,419 Reserves from Brazilian Central Bank 59,051 - - - - 59,051 Loans and Receivables 74,887 93,587 45,397 117,084 84,560 415,515 Total 140,034 96,840 65,107 210,005 165,304 677,290 Interest-bearing liabilities: Deposits from credit institutions 150,979 50,936 66,571 84,274 8,191 360,951 Subordinated Debts / Debt Instruments Eligible to Compose Capital - 807 257 7,784 - 8,848 Marketable debt securities 4,445 36,855 12,904 18,421 866 73,491 Trading derivatives 4,618 659 504 12,243 2,285 20,310 Short positions 32,531 - - - - 32,531 Total 192,573 89,257 80,236 122,722 11,342 496,130 2016 Non-Discounted Future Flows Except Derivatives In millions of Reais 0 to 30 days 31 to 180 days 181 to 365 days 1 to 5 years Above 5 years Total Interest-earning assets: Financial Assets Held For Trading 27,093 5,262 4,749 36,135 25,573 98,812 Debt instruments 20,762 2,390 2,867 27,676 20,991 74,686 Trading derivatives 6,331 2,872 1,882 8,459 4,582 24,126 Available-For-Sale Financial Assets 1,492 1,373 1,819 55,056 29,854 89,594 Debt instruments 1,492 1,373 1,819 55,056 29,854 89,594 Other Financial Assets At Fair Value Through Profit Or Loss 38 14 52 586 1,824 2,514 Debt instruments 38 14 52 586 1,824 2,514 Non-Current Assets Held For Sale 79 170 227 3,307 9,979 13,762 Reserves from Brazilian Central Bank 58,594 - - - - 58,594 Loans and Receivables 18,151 112,337 42,763 106,518 82,770 362,539 Total 105,447 119,156 49,610 201,602 150,000 625,815 Interest-bearing liabilities: Deposits from credit institutions 135,725 51,098 50,024 86,535 7,444 330,826 Subordinated Debts / Debt Instruments Eligible to Compose Capital - 347 330 10,633 - 11,310 Marketable debt securities 6,234 41,431 35,390 27,344 521 110,920 Trading derivatives 6,046 1,308 1,268 7,123 4,167 19,912 Short positions 31,551 - - - - 31,551 Total 179,556 94,184 87,012 131,635 12,132 504,519 |
Sensibilities | The interest rate risk in balance sheets management portfolios, measured in terms of sensitivity of the net interest margin (NIM) at one year to a parallel increase of 100 b.p. in the interest rate curve, was at the beginning of 2018 and 2017, reaching a maximum of R$292 million in January 2018. The sensitivity value decreased R$205 million during 2018, reaching a maximum of R$1,981 million in January. The main factors that occurred in 2017 and influenced in sensitivity were the volatility of the exchange rate (convexity effect), portfolio's decayment update of implicit methodology on cash flow of the Bank's products and liquidity. Million of Reais 2018 2017 2016 Sensibilities Net Interest Margin 200 378 385 Market Value of Equity 1,861 2,066 1,680 Value at Risk - Balance VaR 1,744 1,380 804 |
Trading portfolio | Trading portfolio 2018 Risk Factor Description Scenario 1 Scenario 2 Scenario 3 Interest Rate - Reais Exposures subject to changes in interest fixed rate (752) (11,854) (23,708) Coupon Interest Rate Exposures subject to changes in coupon rate of interest rate (1,091) (15,747) (31,494) Inflation Exposures subject to change in coupon rates of price indexes (4,344) (45,686) (91,371) Coupon - US Dollar Exposures subject to changes in coupon US Dollar rate (2,229) (60,518) (121,036) Coupon - Other Currencies Exposures subject to changes in coupon foreign currency rate (5,030) (5,349) (10,697) Foreign currency Exposures subject to foreign exchange (10,926) (273,156) (546,313) Eurobond/Treasury/Global Exposures subject to changes in interest rate negotiated roles in international market (328) (2,138) (4,277) Shares and Indexes Exposures subject to change in shares price (3,028) (75,711) (151,422) Commodities Exposures subject to change in commodities' prices (2) (42) (84) Total (1) (27,730) (490,201) (980,402) |
Portfolio Banking | Portfolio Banking 2018 Risk Factor Description Scenario 1 Scenario 2 Scenario 3 Interest Rate - Reais Exposures subject to changes in interest fixed rate (48,019) (821,285) (1,636,606) TR and Long-Term Interest Rate - (TJLP) Exposures subject to changes in Exchange of TR in TJLP (22,042) (364,231) (551,674) Inflation Exposures subject to change in coupon rates of price indexes (37,400) (475,444) (948,607) Coupon - US Dollar Exposures subject to changes in coupon US Dollar rate (2,721) (43,693) (71,662) Coupon - Other Currencies Exposures subject to changes in coupon foreign currency rate (4,241) (63,970) (128,421) Interest Rate Markets International Exposures subject to changes in interest rate negotiated roles in international market (3,692) (80,702) (141,043) Foreign Currency Exposures subject to Foreign Exchange (2,513) (62,821) (125,642) Total (1) (120,628) (1,912,146) (3,603,655) |
Risk Type | The risk profile in Brazil is distributed by Credit risk, Market, ALM, Business, Operations and materials assets. However, to successfully anticipate the changes proposed in Basel III, new risks have been incorporated to model: Intangibles, pension funds (defined benefit) and deferred tax assets, which allow the Bank to adopt a position even more conservative and prudent. % Capital 2018 2017 2016 Risk Type New Methodology New Methodology New Methodology Credit 72% 70% 62% Market 2% 4% 5% ALM 8% 4% 9% Business 6% 8% 8% Operational 5% 6% 6% Fixed Assets 1% 2% 2% Intangible Assets 0% 1% 1% Pension Funds 1% 1% 1% Deferred Tax Assets 5% 4% 6% TOTAL 100% 100% 100% |
conciliation of stockholders' equity and net income attributed to the parent between standards adopted in Brazil (BRGAAP) and IFRS | The table below presents a conciliation of stockholders' equity and net income attributed to the parent between standards adopted in Brazil (BRGAAP) and IFRS, with the conceptual description of the main adjustments: Thousand of Reais Note 2018 2017 2016 Shareholders' equity attributed under to the Parent Brazilian GAAP 65,233,743 59,499,954 57,771,524 IFRS adjustments, net of taxes, when applicable: Reclassification of financial instruments at fair value through profit or loss i 8,344 18,301 643 j - 34,818 23,180 Reclassification of fair value through other comprehensive income k 72,980 - - Impairment of loans and receivables a - (71,091) 124,787 Impairment of financial assets measured at amortized cost a (1,483,043) - - Remensurations, Debt instruments, due to reclassifications IFRS 9 26,274 - - Category transfers - IAS 39 b - 351,132 608,897 Category transfers - IFRS 9 b (619) - - Deferral of financial fees, commissions and inherent costs under effective interest rate method c 851,629 664,204 297,720 Reversal of goodwill amortization d 26,764,529 26,592,852 25,122,573 Realization on purchase price adjustments e 631,120 702,436 778,882 Recognition of fair value in the partial sale in subsidiaries f 112,052 112,052 112,052 Option for Acquisition of Equity Instrument g (1,323,994) (1,287,240) (1,017,000) Goodwill acquisition Santander Services (Santusa) h (269,158) (298,978) - Tax Credit with realization over 10 years 322,539 62,539 - Others 56,479 269,728 263,797 Shareholders' equity attributed to the parent under IFRS 91,002,875 86,650,707 84,087,055 Non-controlling interest under IFRS 592,585 436,894 725,504 Shareholders' equity (including non-controlling interest) under IFRS 91,595,460 87,087,601 84,812,559 Thousand of Reais Note 2018 2017 2016 Net income attributed to the Parent under Brazilian GAAP 12,166,145 7,996,577 5,532,962 IFRS adjustments, net of taxes, when applicable: Reclassification of financial instruments at fair value through profit or loss i (11,974) 18,775 7,960 j - (46,160) (39,234) Reclassification of fair value through other comprehensive income k 28,419 - - Impairment on loans and receivables a - (195,878) (8,091) Impairment of financial assets measured at amortized cost a 140,557 - - Remensurations, Debt instruments, due to reclassifications IFRS 9 (5,360) - - Category transfers - IAS 39 b - (219,829) (45,314) Category transfers - IFRS 9 b (16,195) - - Deferral of financial fees, commissions and inherent costs under effective interest rate method c 187,425 366,484 148,450 Reversal of goodwill amortization d 171,677 1,470,279 1,755,750 Realization on purchase price adjustments e (71,316) (76,446) (76,247) Option to Acquire Own Equity Instrument g (143,194) (270,240) - Goodwill acquisition Santander Services (Santusa) h 29,820 - - Others (153,527) (182,037) 58,327 Net income attributed to the parent under IFRS 12,322,477 8,861,525 7,334,563 Non-controlling interest under IFRS 217,441 213,984 130,355 Net income (including non-controlling interest) under IFRS 12,539,918 9,075,509 7,464,918 |
Bank's consolidated financial statements prepared in accordance with IFRS | The following Statements of value added is not required under IFRS but being presented as supplementary information as required by Brazilian Corporate Law for publicly-held companies, and has been derived from the Bank´s consolidated financial statements prepared in accordance with IFRS. 2018 2017 2016 Thousand of Reais Interest and similar income 70,478,393 71,418,349 77,146,077 Net fee and commission income 14,132,159 12,721,868 10,977,596 Impairment losses on financial assets (net) (12,713,435) (12,338,300) (13,301,445) Other income and expense (6,861,406) (3,043,565) (751,727) Interest expense and similar charges (28,557,051) (36,471,860) (46,559,584) Third-party input (7,219,152) (6,728,881) (5,804,939) Materials, energy and others (544,237) (495,913) (510,961) Third-party services (5,572,127) (5,107,077) (4,589,468) Impairment of assets (508,310) (456,711) (114,321) Other (594,478) (669,180) (590,189) Gross added value 29,259,508 25,557,611 21,705,978 Retention Depreciation and amortization (1,739,959) (1,662,247) (1,482,639) Added value produced 27,519,549 23,895,364 20,223,339 Added value received from transfer Investments in affiliates and subsidiaries 65,958 71,551 47,537 Added value to distribute 27,585,507 23,966,915 20,270,876 Added value distribution Employee 8,185,896 29.7% 7,908,746 33.0% 7,378,374 36.4% Compensation 5,863,584 5,795,579 5,455,374 Benefits 1,534,560 1,421,910 1,397,711 Government severance indemnity funds for employees - FGTS 448,699 413,871 352,939 Other 339,053 277,386 172,350 Taxes 5,813,381 21.1% 6,131,544 25.6% 4,659,989 23.0% Federal 4,864,176 5,481,969 4,101,629 State 224 1,260 717 Municipal 948,981 648,315 557,643 Compensation of third-party capital - rental 786,312 2.9% 788,577 3.3% 767,595 3.8% Remuneration of interest on capital 12,799,918 46.4% 9,138,048 38.1% 7,464,918 36.8% Dividends and interest on capital 6,600,000 6,300,000 4,550,000 Profit Reinvestment 5,982,477 2,624,064 2,784,563 Profit (loss) attributable to non-controlling interests 217,441 213,984 130,355 Total 27,585,507 100.0% 23,966,915 100.0% - 20,270,876 100.0% |
Introduction, basis of presen_3
Introduction, basis of presentation of the consolidated financial statements and other information (Details 1) R$ in Thousands | Dec. 31, 2017BRL (R$) |
Equity Conciliation [Abstract] | |
Equity before IFRS 9 adjustments - 12/31/2017 | R$ 87087601 |
Allowance for loan losses | (2,149,051) |
Provision for contingent liabilities | (674,513) |
Re-measurement of assets arising from the new categories | 17,806 |
Others | 237,867 |
Deferred tax | 1,026,066 |
Equity after IFRS 9 adjustments - 1/01/2018 | R$ 85545776 |
Introduction, basis of presen_4
Introduction, basis of presentation of the consolidated financial statements and other information (Details 2) R$ in Millions | Dec. 31, 2017BRL (R$) |
Provision For Loan Losses [Abstract] | |
Allowance for loan losses - Balance 12/31/2017 | R$ 18261638 |
Allowance for guarantees - Balance 12/31/2017 | 312,373 |
IAS 39 Balance at 12/31/2017 | 18,574,011 |
Initial adoption effect of IFRS 9 (Note 1.2i) | 2,823,564 |
IFRS 9 Balance at 01/01/2018 | R$ 21397575 |
Introduction, basis of presen_5
Introduction, basis of presentation of the consolidated financial statements and other information (Details 3) R$ in Thousands | Dec. 31, 2017BRL (R$) | |
Reclassifications | ||
IFRS 9 adoption first adoption effects on the Financial Assets and Liabilities (In R$ Millions) | ||
Measured at Amortized cost | R$ 354317416 | |
Measured Mandatorily Measured At Fair Value Through Profit Or Loss | 492,429 | |
Measured at Fair value through other comprehensive income | 436,729 | |
Measured at Amortized cost | 4,762,234 | |
Measured at Fair value through other comprehensive income | 79,954,513 | |
Measured at Fair value through profit and loss | 1,106,637 | |
Measured at Amortized cost | 10,214,454 | |
Measured at Fair value through profit and loss Held For Trading | 86,271,097 | |
Measured at Fair value through profit and loss | 1,692,057 | |
Total | 539,247,566 | [1] |
Remeasurement | ||
IFRS 9 adoption first adoption effects on the Financial Assets and Liabilities (In R$ Millions) | ||
Measured at Amortized cost | 0 | |
Measured Mandatorily Measured At Fair Value Through Profit Or Loss | 5,197 | |
Measured at Fair value through other comprehensive income | (7,179) | |
Measured at Amortized cost | 3,791 | |
Measured at Fair value through other comprehensive income | 0 | |
Measured at Fair value through profit and loss | 15,997 | |
Measured at Amortized cost | 0 | |
Measured at Fair value through profit and loss Held For Trading | 0 | |
Measured at Fair value through profit and loss | 0 | |
Total | 17,806 | [1] |
Original classification in accordance with IAS 39 | Balance 12/31/2017 | ||
IFRS 9 adoption first adoption effects on the Financial Assets and Liabilities (In R$ Millions) | ||
Loans and receivables | 355,246,574 | |
Available-for-sale | 85,823,384 | |
Held to maturity investments | 10,214,454 | |
Held for trading | 86,271,097 | |
Other financial assets measured at fair value through profit and loss | 1,692,057 | |
Total | 539,247,566 | [1] |
New classification in accordance with IFRS 9 | Balance 01/01/2018 | ||
IFRS 9 adoption first adoption effects on the Financial Assets and Liabilities (In R$ Millions) | ||
Measured at Amortized cost | 354,317,416 | |
Measured Mandatorily Measured At Fair Value Through Profit Or Loss | 497,626 | |
Measured at Fair value through other comprehensive income | 429,550 | |
Measured at Amortized cost | 4,766,025 | |
Measured at Fair value through other comprehensive income | 79,954,513 | |
Measured at Fair value through profit and loss | 1,122,634 | |
Measured at Amortized cost | 10,214,454 | |
Measured at Fair value through profit and loss Held For Trading | 86,271,097 | |
Measured at Fair value through profit and loss | 1,692,057 | |
Total | R$ 539265372 | [1] |
[1] | Does not include Provision for Losses on contingent liabilities and commitments. |
Introduction, basis of presen_6
Introduction, basis of presentation of the consolidated financial statements and other information (Details 4) R$ in Thousands | Dec. 31, 2017BRL (R$) |
Reclassifications | |
IFRS 9 adoption first adoption effects on the Financial Assets and Liabilities (In R$ Millions) | |
Measured At Fair Value Through Profit Or Loss Held For Trading | R$ 0 |
Measured at Amortized cost | 0 |
Total | 0 |
Remeasurement | |
IFRS 9 adoption first adoption effects on the Financial Assets and Liabilities (In R$ Millions) | |
Measured At Fair Value Through Profit Or Loss Held For Trading | 0 |
Measured at Amortized cost | 0 |
Total | 0 |
Original classification in accordance with IAS 39 | Balance 12/31/2017 | |
IFRS 9 adoption first adoption effects on the Financial Assets and Liabilities (In R$ Millions) | |
Held for trading | 49,322,546 |
Amortized cost | 478,880,704 |
Total | 528,203,250 |
New classification in accordance with IFRS 9 | Balance 01/01/2018 | |
IFRS 9 adoption first adoption effects on the Financial Assets and Liabilities (In R$ Millions) | |
Measured At Fair Value Through Profit Or Loss Held For Trading | 49,322,546 |
Measured at Amortized cost | 478,880,704 |
Total | R$ 528203250 |
Significant Accounting Polici_3
Significant Accounting Policies (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives | |||
Assets | |||
Financial assets, gross | R$ 18667611 | R$ 17262888 | R$ 24702973 |
Financial assets offset in the balance sheet, gross | (304,165) | 0 | 0 |
Financial assets offset in the balance sheet, net | 18,363,446 | 17,262,888 | 24,702,973 |
Liabilities | |||
Financial liabilities, gross | 18,771,000 | 16,677,486 | 20,236,615 |
Financial liabilities offset in the balance sheet, gross | (304,165) | 0 | 0 |
Financial liabilities offset in the balance sheet, net | 18,466,835 | 16,677,486 | 20,236,615 |
Repurchase agreements | |||
Assets | |||
Financial assets, gross | 44,836,491 | 34,505,671 | 47,528,393 |
Financial assets offset in the balance sheet, gross | 0 | 0 | 0 |
Financial assets offset in the balance sheet, net | 44,836,491 | 34,505,671 | 47,528,393 |
Liabilities | |||
Financial liabilities, gross | 101,647,013 | 97,421,579 | 129,817,727 |
Financial liabilities offset in the balance sheet, gross | 0 | 0 | 0 |
Financial liabilities offset in the balance sheet, net | R$ 101647013 | R$ 97421579 | R$ 129817727 |
Significant Accounting Polici_4
Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2018 | |
Tangible Assets Depreciation Rate [Abstract] | |
Buildings for own use | 4.00% |
Furniture | 10.00% |
Fixtures | 10.00% |
Office and IT equipment | 20.00% |
Leasehold improvements | 10% or up to contractual maturity |
Significant Accounting Polici_5
Significant Accounting Policies (Details Text) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Lat Additional Technical Provisions [Abstract] | |||
Lat additional technical provisions | R$ 215754 | R$ 130307 | R$ 85395 |
Basis of consolidation (Details
Basis of consolidation (Details 1) | 12 Months Ended | |
Dec. 31, 2018 | ||
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Banco Bandepe S.A. | ||
Controlled entities and investment funds | ||
Name of subsidiary | Banco Bandepe S.A. | [1] |
Activity | Bank | [1] |
Participation % Consolidated | 100.00% | [1] |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Santander Leasing S.A. Arrendamento Mercantil (Santander Leasing) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander Leasing S.A. Arrendamento Mercantil (Santander Leasing) | |
Activity | Leasing | |
Participation % Consolidated | 99.99% | |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Aymoré Crédito, Financiamento e Investimento S.A. (Aymoré CFI) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Aymoré Crédito, Financiamento e Investimento S.A. (Aymoré CFI) | |
Activity | Financial | |
Participation % Consolidated | 100.00% | |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Santander Brasil Administradora de Consórcio Ltda. (Santander Brasil Consórcio) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander Brasil Administradora de Consórcio Ltda. (Santander Brasil Consórcio) | |
Activity | Buying club | |
Participation % Consolidated | 100.00% | |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Atual Serviços de Recuperação de Créditos e Meios Digitais S.A. (formerly named as Atual Companhia Securitizadora de Créditos Financeiros) (Atual) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Atual Serviços de Recuperação de Créditos e Meios Digitais S.A. (formerly named as Atual Companhia Securitizadora de Créditos Financeiros) (Atual) | [2] |
Activity | Credit recovery services | [2] |
Participation % Consolidated | 100.00% | [2] |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Santander Corretora de Câmbio e Valores Mobiliários S.A. (Santander CCVM) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander Corretora de Câmbio e Valores Mobiliários S.A. (Santander CCVM) | |
Activity | Broker | |
Participation % Consolidated | 100.00% | |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Santander Corretora de Seguros, Investimentos e Serviços S.A. (Santander Corretora de Seguros) (formerly named as Santander Participações S.A.) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander Corretora de Seguros, Investimentos e Serviços S.A. (Santander Corretora de Seguros) (formerly named as Santander Participações S.A.) | [3],[4],[5] |
Activity | Other activities | [3],[4],[5] |
Participation % Consolidated | 100.00% | [3],[4],[5] |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Getnet Adquirência e Serviços para Meios de Pagamento S.A. (Getnet S.A.) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Getnet Adquirência e Serviços para Meios de Pagamento S.A. (Getnet) | |
Activity | Payment Institution | |
Participation % Consolidated | 88.50% | |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Sancap Investimentos e Participações S.A. (Sancap) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Sancap Investimentos e Participações S.A. (Sancap) | |
Activity | Holding | |
Participation % Consolidated | 100.00% | |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Santander Brasil Establecimiento Financiero de Crédito S.A. (EFC) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander Brasil Establecimiento Financiero de Crédito S.A. (EFC) | |
Activity | Financial | |
Participation % Consolidated | 100.00% | |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Santander Holding Imobiliária S.A. (formerly named Webcasas S.A.) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander Holding Imobiliária S.A. (formerly named Webcasas S.A.) | [6] |
Activity | Holding | [6] |
Participation % Consolidated | 100.00% | [6] |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Santander Brasil Tecnologia S.A. (formerly named Produban Serviços de Informática S.A.) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander Brasil Tecnologia S.A. (formerly named Produban Serviços de Informática S.A.) | [7] |
Activity | Technology | [7] |
Participation % Consolidated | 100.00% | [7] |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Rojo Entretenimento S.A. | ||
Controlled entities and investment funds | ||
Name of subsidiary | Rojo Entretenimento S.A. | [8] |
Activity | Other Activities | [8] |
Participation % Consolidated | 94.60% | [8] |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | BEN Benefícios e Serviços S.A. | ||
Controlled entities and investment funds | ||
Name of subsidiary | BEN Benefícios e Serviços S.A. | [9] |
Activity | Other Activities | [9] |
Participation % Consolidated | 100.00% | [9] |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Esfera Fidelidade S.A. | ||
Controlled entities and investment funds | ||
Name of subsidiary | Esfera Fidelidade S.A. | [10] |
Activity | Other Activities | [10] |
Participation % Consolidated | 100.00% | [10] |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Return Capital Serviços de Recuperação de Créditos e Meios Digitais S.A. (formerly named Ipanema Empreendimentos e Participações S.A.) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Return Capital Serviços de Recuperação de Créditos e Meios Digitais S.A. (formerly named Ipanema Empreendimentos e Participações S.A.) | [11],[12] |
Activity | Credit Management and Recovery Management | [11],[12] |
Participation % Consolidated | 70.00% | [11],[12] |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Return Gestão de Recursos S.A. (formerly named Gestora de Investimentos Ipanema S.A.) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Return Gestão de Recursos S.A. (formerly named Gestora de Investimentos Ipanema S.A.) | [13] |
Activity | Resource Manager | [13] |
Participation % Consolidated | 100.00% | [13] |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Auttar HUT Processamento de Dados Ltda. (Auttar HUT) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Auttar HUT Processamento de Dados Ltda. (Auttar HUT) | |
Activity | Other Activities | |
Participation % Consolidated | 100.00% | |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Integry Tecnologia e Serviços A.H.U Ltda. (Integry Tecnologia) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Integry Tecnologia e Serviços A.H.U Ltda. (Integry Tecnologia) | |
Activity | Other Activities | |
Participation % Consolidated | 100.00% | |
Directly and Indirectly controlled by Banco Santander (Brasil) S.A. | Toque Fale Serviços de Telemarketing Ltda. (Toque Fale) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Toque Fale Serviços de Telemarketing Ltda. (Toque Fale) | |
Activity | Other Activities | |
Participation % Consolidated | 100.00% | |
Controlled by Sancap | Santander Capitalização S.A. (Santander Capitalização) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander Capitalização S.A. (Santander Capitalização) | |
Activity | Savings and annuities | |
Participation % Consolidated | 100.00% | |
Controlled by Sancap | Evidence Previdência S.A. | ||
Controlled entities and investment funds | ||
Name of subsidiary | Evidence Previdência S.A. | |
Activity | Social Securities | |
Participation % Consolidated | 100.00% | |
Controlled by Aymoré CFI | Super Pagamentos e Administração de Meios Eletrônicos Ltda. (Super Pagamentos) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Super Pagamentos e Administração de Meios Eletrônicos Ltda. (Super Pagamentos) | [14],[15] |
Activity | Payment Institution | [14],[15] |
Participation % Consolidated | 100.00% | [14],[15] |
Controlled by Aymoré CFI | Banco Olé Bonsucesso Consignado S.A. (Olé Consignado) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Banco Olé Bonsucesso Consignado S.A. (Olé Consignado) | [16] |
Activity | Bank | [16] |
Participation % Consolidated | 60.00% | [16] |
Controlled by Aymoré CFI | Banco PSA Finance Brasil S.A. | ||
Controlled entities and investment funds | ||
Name of subsidiary | Banco PSA Finance Brasil S.A. | |
Activity | Bank | |
Participation % Consolidated | 50.00% | |
Controlled by Olé Consignado | BPV Promotora de Vendas e Cobrança Ltda. | ||
Controlled entities and investment funds | ||
Name of subsidiary | BPV Promotora de Vendas e Cobrança Ltda. | |
Activity | Other Activities | |
Participation % Consolidated | 100.00% | |
Controlled by Olé Consignado | Olé Tecnologia Ltda. | ||
Controlled entities and investment funds | ||
Name of subsidiary | Olé Tecnologia Ltda. | |
Activity | Other Activities | |
Participation % Consolidated | 100.00% | |
Controlled by Santander Leasing | Si Distribuidora de Títulos e Valores Mobiliários S.A. (formerly named Santander Finance Arrendamento Mercantil) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Si Distribuidora de Títulos e Valores Mobiliários S.A. (formerly named Santander Finance Arrendamento Mercantil) | [17],[18] |
Activity | Leasing | [17],[18] |
Participation % Consolidated | 100.00% | [17],[18] |
Consolidated Investment Funds | Santander FIC FI Contract I Referenciado DI | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander FIC FI Contract I Referenciado DI | |
Activity | Investment Fund | |
Participation % Consolidated | 100.00% | [19] |
Consolidated Investment Funds | Santander Fundo de Investimento Unix Multimercado Crédito Privado | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander Fundo de Investimento Unix Multimercado Crédito Privado | |
Activity | Investment Fund | |
Participation % Consolidated | 100.00% | [19] |
Consolidated Investment Funds | Santander Fundo de Investimento Diamantina Multimercado Crédito Privado de Investimento no Exterior | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander Fundo de Investimento Diamantina Multimercado Crédito Privado de Investimento no Exterior | |
Activity | Investment Fund | |
Participation % Consolidated | 100.00% | [19] |
Consolidated Investment Funds | Santander Fundo de Investimento Amazonas Multimercado Crédito Privado de Investimento no Exterior | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander Fundo de Investimento Amazonas Multimercado Crédito Privado de Investimento no Exterior | |
Activity | Investment Fund | |
Participation % Consolidated | 100.00% | [19] |
Consolidated Investment Funds | Santander Fundo de Investimento SBAC Referenciado DI Crédito Privado | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander Fundo de Investimento SBAC Referenciado DI Crédito Privado | |
Activity | Investment Fund | |
Participation % Consolidated | 100.00% | [19] |
Consolidated Investment Funds | Santander Fundo de Investimento Guarujá Multimercado Crédito Privado de Investimento no Exterior | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander Fundo de Investimento Guarujá Multimercado Crédito Privado de Investimento no Exterior | |
Activity | Investment Fund | |
Participation % Consolidated | 100.00% | [19] |
Consolidated Investment Funds | Santander Fundo de Investimento Financial Curto Prazo | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander Fundo de Investimento Financial Curto Prazo | |
Activity | Investment Fund | |
Participation % Consolidated | 100.00% | [19] |
Consolidated Investment Funds | Santander Fundo de Investimento Capitalization Renda Fixa | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander Fundo de Investimento Capitalization Renda Fixa | |
Activity | Investment Fund | |
Participation % Consolidated | 100.00% | [19] |
Consolidated Investment Funds | Santander Paraty QIF PLC | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander Paraty QIF PLC | [20] |
Activity | Investment Fund | [20] |
Participation % Consolidated | 100.00% | [19],[20] |
Consolidated Investment Funds | Santander FI Hedge Strategies Fund (Santander FI Hedge Strategies) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander FI Hedge Strategies Fund (Santander FI Hedge Strategies) | [20] |
Activity | Investment Fund | [20] |
Participation % Consolidated | 100.00% | [19],[20] |
Consolidated Investment Funds | Prime 16 – Fundo de Investimento Imobiliário (formerly named BRL V - Fundo de Investimento Imobiliário - FII) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Prime 16 – Fundo de Investimento Imobiliário (formerly named BRL V - Fundo de Investimento Imobiliário - FII) | [21] |
Activity | Real Estate Investment Fund | [21] |
Participation % Consolidated | 100.00% | [19],[21] |
Consolidated Investment Funds | Fundo de Investimento em Direitos Creditórios Multisegmentos NPL Ipanema VI - Não Padronizado (Fundo Investimento Ipanema NPL VI) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Fundo de Investimento em Direitos Creditórios Multisegmentos NPL Ipanema VI - Não Padronizado (Fundo Investimento Ipanema NPL VI) | [22] |
Activity | Investment Fund | [22] |
Participation % Consolidated | 100.00% | [19],[22] |
Consolidated Investment Funds | Fundo de Investimento em Direitos Creditórios Multisegmentos NPL Ipanema VI - Não Padronizado (Fundo Investimento Ipanema NPL V) | ||
Controlled entities and investment funds | ||
Name of subsidiary | Fundo de Investimento em Direitos Creditórios Multisegmentos NPL Ipanema VI - Não Padronizado (Fundo Investimento Ipanema NPL V) | [23] |
Activity | Investment Fund | [23] |
Participation % Consolidated | 100.00% | [19],[23] |
Consolidated Investment Funds | Santander Hermes Multimercado Crédito Privado Infraestrutura Fundo de Investimentos | ||
Controlled entities and investment funds | ||
Name of subsidiary | Santander Hermes Multimercado Crédito Privado Infraestrutura Fundo de Investimentos | [24] |
Activity | Investment Fund | [24] |
Participation % Consolidated | 100.00% | [19],[24] |
[1] | In the EGM (Extraordinary general meeting) held on December 7, 2018, Banco Bandepe S.A. had its capital stock increased in the amount of R$2,000,000, passing from R$2,787,689 to R$4,787,689, divided into 3,589,334 (three million, five hundred and eighty-nine thousand and three hundred and thirty-four) common nominative shares without par value. The shareholder Banco Santander subscribed all the new issued shares and paid-in the shares corresponding to 50% of the capital increase, being that the shares subscribed and pending of payment will be paid-in pursuant to the conditions and term provided in law. | |
[2] | On March 23, 2018, Atual Companhia Securitizadora de Creditos Financeiros had its name changed to Atual Servicos de Recuperacao de Creditos e Meios Digitais S.A., and its share capital increased in R$150,000 passing the share capital to the amount of R$270,000, divided into 265,419,392 (two hundred and sixty-five million, four hundred and nineteen thousand and three hundred and ninety-two) ordinary common shares without par value, entirely held by Banco Santander. | |
[3] | At the ESM (Extraordinary shareholder meeting) held on September 29, 2017, Santander Corretora de Seguros' shareholders' equity increase was approved in the amount of R$12,900, based on the net assets of Santander Brasil Advisory calculated based on its book value at base date of August 31, 2017, of which the amount of R$8,463 was allocated to the share capital account of Santander Corretora de Seguros, increasing the current capital from R$1,717,652 to R$1,726,115, by issuing a total of 37,554 (thirty-seven thousand, five hundred and fifty-four) nominative common shares with no par value that were subscribed and paid-in on that date by Banco Santander, the issue price was set at R$343.50 per share, calculated based on their respective carrying amounts, on the base date of August 31, 2017. On September 29, 2017, the merger and the Private Instrument of Protocol and Justification of Santander Brasil Advisory by Santander Corretora de On September 29, 2017, the merger and the Private Instrument of Protocol and Justification of Santander Brasil Advisory by Santander Corretora de Seguros were approved, so that Santander Corretora de Seguros received through their book value, based on the balance sheet drawn up on August 31, 2017, all of the assets, rights and obligations of Santander Brasil Advisory. With the extinction of Santander Brasil Advisory the Santander Corretora de Seguros became its successor in all its rights and obligations. | |
[4] | In the ESM (Extraordinary Shareholders' Meeting) held on May 8, 2017, was approved the name change of Santander Participacoes S.A. to Santander Corretora de Seguros, Investimentos e Servicos S.A. In the same ESM, was approved the amendment to the company's corporate purpose. At the ESM held on August 31, 2017, a capital increase of R$17,652 was approved, in view of the version of the net assets of Santander Microcredito, based on its book value at the date - based on June 30, 2017, entirely destined to the share capital account of Santander Corretora de Seguros, transferring the capital stock from the current R$1,700,000 to R$1,717,652, through the issuance of a total of 51,776 (fifty-one thousand, seven hundred and seventy-six) registered common shares with no par value that were subscribed and paid by Banco Santander on that date, the issue price was set at R$340.93 per share, calculated based on its book value, on the base date of August 31, 2017. On August 31, 2017, the merger and the Private Instrument of Protocol and Justification of Santander Microcredito by Santander Corretora de Seguros were approved, so that Santander Corretora de Seguros received through their book value, based on the balance sheet drawn up on June 30, 2017, all of the assets, rights and obligations of Santander Microcredito. With the extinction of Santander Microcredito the Santander Corretora de Seguros became its successor in all its rights and obligations. | |
[5] | On November 17, 2017, was formalized the acquisition by Banco Santander of the participation by Santusa Holding, S.L. (equivalent to 39.35%) in the share capital of Santander Servicos. Thus, Banco Santander becomes the holder of 99.99% of the shares of Santander Servicos. The amount of R$298,978 relating to goodwill was recorded. On November 30, 2017, Santander Servicos was merged into Santander Corretora de Seguros and on December 22, 2017, Santander Corretora de Seguros, Cia. de Ferro Ligas da Bahia - Ferbasa SA and Brazil Wind S.A. executed agreement for the sale of 100% of the shares issued by BW Guirapa I S.A. held by Santander Corretora de Seguros and Brazil Wind to Ferbasa. The basic price of the total sale was R$414,000, and an additional amount of up to R$35,000 may be paid if future targets stipulated in the Contract are met. This investment was written off and, consequently, the assets and liabilities of BW Guirapa I and its subsidiaries are no longer consolidated in the Conglomerate Balance Sheet as of January 1, 2018. On April 2, 2018, the transaction was concluded (Note 10). | |
[6] | Through the Private Stock Purchase and Sale Agreement held on October 26, 2017, Santander Servicos sold its interest held in Webcasas S.A. to Banco Santander. The full sale occurred at book value. In ESM held on November 1, 2017, was approved the change of name of Webcasas S.A. to Santander Holding Imobiliaria S.A. and the amendment of its corporate purpose to encompass the new activities to be developed. | |
[7] | In the ESM held on March 19, 2018, was approved the capital increase of Santander Brasil Tecnologia S.A. in the amount of R$4,000, through incorporation of the reserve for dividends' equalization, without changing the number of shares, passing the capital stock from the amount of R$91,048 to R$95,048, represented by 45,371,225 (forty-five million, three hundred and seventy-one thousand and two hundred and twenty-five) nominative common shares without par value. | |
[8] | Investment transferred from non-current assets held for sale accounting item (Note 10) on June 2018. | |
[9] | BEN Beneficios e Servicos S.A. was incorporated on June 11, 2018. | |
[10] | On August 14, 2018, Esfera Fidelidade S.A. was incorporated, with its equity interest fully held by Banco Santander. The company started its operations on November 2018. | |
[11] | Investment purchased in October 16, 2017. | |
[12] | On July 12, 2018, the company Ipanema Empreendimentos e Participacoes S.A. had its name changed to Return Capital Servicos de Recuperacao de Creditos S.A.. | |
[13] | On July 12, 2018, the company Gestora de Investimentos Ipanema S.A. had its name changed to Return Gestao de Recursos S.A.. | |
[14] | In the ESM held on July 21, 2017, was approved the capital increase of Super Pagamentos in the amount of R$20,000, passing the capital stock from R$49,451 to R$69,451, through issuance of 50,724,086 (fifty million, seven hundred and twenty-four thousand and eighty-six) new nominative common shares without par value, by the issuance price of approximately R$394,29 per one thousand shares, based on the accounting net-worth value of Super Pagamento as of June 30, 2017. The issued shares were fully subscribed and paid-in by Aymore CFI. | |
[15] | On May, 2017, it was approved by Bacen the authorization process for the Company operates as a payment institution. | |
[16] | All the shareholders canceled the ESM held on December 19, 2017, which approved the capital increase of Ole Consignado in the amount of R$120,000. In the ESM held on February 9, 2018, the shareholders fully representing the capital stock of Ole Consignado approved the capital increase in the amount of R$ 120,000, passing the share capital from R$ 400,000 to R$ 520,000, through issuance of 57,089,392 (fifty seven million, eighty-nine thousand, three hundred and ninety two) nominative common shares, without par value, fully subscribed and paid-in by the shareholders, on the ESM date, proportionally to their respective equity interest. The capital increase was approved by Bacen on March 15, 2018. | |
[17] | In the ESM held on December 17, 2018, was approved the change of corporate name of SI Distribuidora de Titulos e Valores Mobiliarios S.A. to PI Distribuidora de Titulos e Valores Mobiliarios S.A. On January 22, 2019, Bacen approved the company's change of corporate name. | |
[18] | In the ESM held on May 3, 2018, the shareholders of Santander Finance Arrendamento Mercantil S.A. approved its conversion into a distributor of bonds and securities, and change of its corporate name to SI Distribuidora de Titulos e Valores Mobiliarios S.A. The conversion process of approved by Bacen on November 21, 2018. | |
[19] | Company over which the Bank is exposed, or has rights, to variable returns and have the ability to affect those returns through the power of decision, in accordance with IFRS 10 - Consolidated Financial Statements. Banco Santander and its subsidiaries holds 100% of the shares of these investment funds. | |
[20] | 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. | |
[21] | The Banco Santander figured as lender of certain delayed debts (loans) which had real state as guarantees. The process of credit recovery consists in converte into capital contributions by the Real Estate Fund in conjunction concomitant transfer of the same shares to Banco Santander through the process of payment in kind of the above credit operations payments. | |
[22] | This investment fund was formed and started to be consolidated in September of 2017. It refers to a structure where the Bank has sold certain loans agreements which were already written-off (agreements matured over 360 days) and transferred to this fund. Atual Servicos de Recuperacao de Creditos e Meios Digitais S.A. (Atual), company controlled by the Banco Santander, holds 100% of the fund's quotas. | |
[23] | This fund was consolidated in October 2017 and the majority of its quotas indirectly held by Atual. | |
[24] | This fund started being consolidated on November 2018. |
Introduction, basis of presen_7
Introduction, basis of presentation of the consolidated financial statements and other information (Details Text) R$ in Billions | Dec. 31, 2018BRL (R$) |
Ifrs First Adoption Effects [Abstract] | |
Tangible Assets - For Own Use and Financial Liabilities at Amortized Cost - Other Financial Liabilities | R$ 2.4 |
Cash and balances with the Br_3
Cash and balances with the Brazilian Central Bank (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash and cash equivalents [abstract] | ||||
Cash and cash equivalents | R$ 19463587 | R$ 4661348 | R$ 3316800 | |
Of which: | ||||
Cash | 4,235,096 | 4,661,348 | 3,316,800 | |
Cash and Foreign currency application abroad | 15,228,491 | 15,980,973 | 11,366,935 | |
Central Bank compulsory deposits | [1],[2] | 12,252,758 | 13,482,432 | 11,600,834 |
Total | R$ 31716345 | R$ 34124753 | R$ 26284569 | |
[1] | Central Bank compulsory deposits relate to a minimum balance that financial institutions are required to maintain with Bacen based on a percentage of deposits received from third parties, considered as restricted use of resources. | |||
[2] | In 2018, the balances related to the compulsory deposits of time deposits were reclassified to Loans and amounts due from credit institutions for a better presentation and, consequently, the respective comparative balances were also reclassified. |
Loans and amounts due from cr_3
Loans and amounts due from credit institutions (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loans And Amounts Due From Credit Institutions Classification [Abstract] | ||||
Loans and receivables | R$ 0 | R$ 65209902 | R$ 65711001 | |
Financial Assets Measured At Amortized Cost | 79,607,001 | 0 | 0 | |
Of which: | ||||
Loans and amounts due from credit institutions, gross | 79,620,562 | 65,278,917 | 27,963,914 | |
Impairment losses (note 9.c) | (13,561) | (69,015) | (201,441) | |
Loans and amounts due from credit institutions, net | 79,607,001 | 65,209,902 | 65,711,001 | |
Loans and amounts due from credit institutions, gross | 79,620,562 | 65,278,917 | 65,912,442 | |
Type: | ||||
Time deposits | [1],[2] | 64,547,525 | 53,128,272 | 53,213,602 |
Reverse repurchase agreements | [2],[3] | 3,728,963 | 270,735 | 848,096 |
Escrow deposits | 10,182,936 | 10,136,079 | 9,836,300 | |
Other accounts | [4] | 1,161,138 | 1,743,831 | 2,014,444 |
Total | R$ 79620562 | R$ 65278917 | R$ 65912442 | |
[1] | In 2018, the balances related to the compulsory deposits on time deposits were reclassified from Cash and balances with the Brazilian Central Bank for a better presentation and, consequently, the respective comparative balances were also reclassified. | |||
[2] | Includes R$12,793 of short-term transactions with low risk of change in their value, considered cash equivalents. | |||
[3] | Guaranteed by debt instruments. | |||
[4] | As per the IFRS9 adoption the balances of the Loan and Pre Payment Export products were reclassified to Financial Assets Measured at Fair Value through Profit and Loss at the amount of R$611,088. |
Loans and amounts due from cr_4
Loans and amounts due from credit institutions (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans And Amounts Due From Credit Institutions Currency [Abstract] | |||
Brazilian Real | R$ 79166257 | R$ 49914691 | R$ 63369993 |
US dollar | 422,247 | 15,044,088 | 1,658,980 |
Euro | 32,058 | 307,633 | 779,314 |
Pound sterling | 3,585 | 51,972 | |
Other currencies | 8,920 | 52,183 | |
Total | R$ 79620562 | R$ 65278917 | R$ 65912442 |
Loans and amounts due from cr_5
Loans and amounts due from credit institutions (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash equivalents [abstract] | |||
Short-term transactions and low risk of change in its value | R$ 5821573 | R$ 2028581 | R$ 3445846 |
Debt instruments (Details 1)
Debt instruments (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instruments Classification [Abstract] | ||||
Debt instruments - Financial assets held for trading | [1] | R$ 0 | R$ 34879681 | R$ 59994946 |
Financial Assets Measured At Fair Value Through Profit Or Loss | 3,171,746 | 0 | 0 | |
Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading | 50,066,469 | 0 | 0 | |
Other Financial assets designated at fair value through profit or loss | 0 | 1,658,689 | 1,668,749 | |
Financial assets - available-for-sale | 0 | 84,716,747 | 55,829,572 | |
Debt instruments - Financial Assets Measured At Fair Value Through Other Comprehensive Income | [1] | 85,395,691 | 0 | 0 |
Investments Held-to-Maturity | 0 | 10,214,454 | 10,048,761 | |
Loans and receivables | 0 | 17,616,515 | 16,283,259 | |
Financial Assets Measured At Amortized Cost | 36,799,509 | 0 | 0 | |
Of which: | ||||
Debt Instruments | 39,513,460 | 20,400,082 | 17,838,162 | |
Impairment losses | (2,713,951) | (2,783,567) | (1,554,903) | |
Total | 175,433,415 | 149,086,086 | 143,825,287 | |
Type: | ||||
Government securities - Brazil (2) | [2] | 116,531,146 | 122,362,389 | 122,971,854 |
Debentures and Promissory notes | 10,555,952 | 12,097,230 | 12,922,763 | |
Other debt securities | 48,346,317 | 14,626,467 | 7,930,670 | |
Total | R$ 175433415 | R$ 149086086 | R$ 143825287 | |
[1] | On December 31, 2018, management decided to change the classification of Financial Treasury Bills - LFT, of the securities portfolio of Getnet Adquirencia e Servicos para Meios de Pagamento S.A. (Getnet SA), Banco Bandepe SA and Santander Corretora de Cambio e Valores Mobiliarios S.A. (Santander CCVM). The securities were transferred from the Trading to Available for Sale category, in the amounts of R$739,430, R$14,099 and R$375,488, respectively. Such transfers did not impact the amounts of Consolidated and also did not generate effect on the result. The change in the category occurred due to the revaluation of the recent trading history of these assets. | |||
[2] | Includes, substantially, National Treasury Bills (LTN), Treasury Bills (LFT) e National Treasury Notes (NTN-A, NTN-B, NTN-C e NTN-F |
Debt instruments (Details 2)
Debt instruments (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instruments Currency [Abstract] | |||
Brazilian Real | R$ 166743410 | R$ 137420134 | R$ 134037665 |
US dollar | 8,690,005 | 11,665,952 | 9,107,513 |
Euro | 0 | 0 | 680,109 |
Total | R$ 175433415 | R$ 149086086 | R$ 143825287 |
Debt instruments (Details 3)
Debt instruments (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instruments Linked To [Abstract] | |||
Repo Operations | R$ 90909891 | R$ 77781728 | R$ 71810310 |
Banco Central Mandatory Deposits | 1,449,207 | 2,305,158 | 3,044,896 |
Operations guarantees in B3 S.A. - Brasil, Bolsa, Balcão (B3 S.A.) | 17,985,160 | 6,273,561 | 6,221,046 |
Associated to judiciary deposits and other guarantees | 2,078,042 | 4,743,298 | 5,358,604 |
Total | R$ 112422300 | R$ 91103745 | R$ 86434856 |
Equity instruments (Details 1)
Equity instruments (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Classification [Abstract] | ||||
Financial assets held for trading | R$ 0 | R$ 489770 | R$ 398461 | |
Financial Assets Measured At Fair Value Through Profit or Loss Held For Trading | 766,333 | 0 | 0 | |
Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit or Loss | 298,297 | 0 | 0 | |
Other Financial assets designated at fair value through profit or loss | 0 | 33,368 | 42,455 | |
Financial assets available-for-sale | 0 | 1,106,637 | 1,985,473 | |
Financial Assets Measured At Fair Value Through Other Comprehensive Income | 40,986 | 0 | 0 | |
Total | 1,105,616 | 1,629,775 | 2,426,389 | |
Type: | ||||
Shares of Brazilian companies | 783,475 | 389,113 | 1,185,653 | |
Shares of foreign companies | 1,933 | 5,347 | 3,588 | |
Investment funds | [1] | 320,208 | 1,235,315 | 1,237,148 |
Total | R$ 1105616 | R$ 1629775 | R$ 2426389 | |
[1] | Composed mainly by investment on fixed income, public and private securities. |
Equity instruments (Details 2)
Equity instruments (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Changes Equity Instruments Financial Assets Held For Trading [Abstract] | |||
Balance at beginning of year | R$ 489770 | R$ 398461 | R$ 404973 |
Net additions (disposals) | 277,462 | 90,696 | (7,125) |
Valuation adjustments | (899) | 613 | 613 |
Balance at end of year | R$ 766333 | R$ 489770 | R$ 398461 |
Equity instruments (Details 3)
Equity instruments (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Equity Instruments Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading [Abstract] | |||
Balance at beginning of year | R$ 33368 | R$ 42455 | R$ 573664 |
Net additions (disposals) | 143,291 | (1,586) | (531,209) |
Valuation adjustments | 121,638 | (7,501) | 0 |
Balance at end of year | R$ 298297 | R$ 33368 | R$ 42455 |
Equity instruments (Details 4)
Equity instruments (Details 4) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Equity Instruments Nontrading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss [Abstract] | |||
Balance at beginning of year | R$ 1106637 | R$ 1985473 | R$ 1162332 |
Net additions (disposals) | (1,034,219) | (830,395) | 852,820 |
Valuation adjustments | (31,432) | (48,441) | (29,679) |
Balance at end of year | R$ 40986 | R$ 1106637 | R$ 1985473 |
Derivative financial instrume_3
Derivative financial instruments and Short positions (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets [abstract] | ||||
Swap Differentials Receivable | [1] | R$ 14640289 | R$ 15781207 | R$ 15321646 |
Option Premiums to Exercise | 716,936 | 553,217 | 935,520 | |
Forward Contracts and Others | 3,006,221 | 928,464 | 8,445,807 | |
Total | 18,363,446 | 17,262,888 | 24,702,973 | |
Liabilities | ||||
Swap Differentials Payable | [1] | 15,952,283 | 14,643,016 | 12,267,819 |
Option Premiums Launched | 563,787 | 385,183 | 1,166,002 | |
Forward Contracts and Others | 1,950,765 | 1,649,287 | 6,802,794 | |
Total | R$ 18466835 | R$ 16677486 | R$ 20236615 | |
[1] | In 2016, includes swaption (swap + option) and embedded derivatives. |
Derivative financial instrume_4
Derivative financial instruments and Short positions (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
"Swap" | ||||
Trading | ||||
Notional | [1] | R$ 0 | R$ 0 | R$ 0 |
Fair Value | (1,431,110) | 1,108,760 | 3,142,125 | |
"Swap" | Liabilities | ||||
Trading | ||||
Notional | [1] | 176,385,349 | 199,709,355 | 184,350,947 |
Fair Value | (45,918,384) | (56,185,419) | (21,169,360) | |
"Swap" | CDI (Interbank Deposit Rates) | Liabilities | ||||
Trading | ||||
Notional | [1] | 11,801,600 | 16,664,176 | 23,178,722 |
Fair Value | 0 | 0 | 0 | |
"Swap" | Fixed Interest Rate - Real | Liabilities | ||||
Trading | ||||
Notional | [1] | 88,317,044 | 114,055,076 | 133,185,717 |
Fair Value | (23,075,374) | (21,687,884) | (17,414,147) | |
"Swap" | Indexed to Price and Interest Rates | Liabilities | ||||
Trading | ||||
Notional | [1] | 24,308,601 | 40,146,968 | 12,767,212 |
Fair Value | (21,775,017) | (34,107,210) | (3,518,297) | |
"Swap" | Foreign Currency | Liabilities | ||||
Trading | ||||
Notional | [1] | 50,748,008 | 28,420,467 | 15,049,776 |
Fair Value | 0 | 0 | (38,836) | |
"Swap" | Others | Liabilities | ||||
Trading | ||||
Notional | [1] | 1,210,096 | 422,668 | 169,520 |
Fair Value | (1,067,993) | (390,325) | (198,080) | |
"Swap" | Assets | ||||
Trading | ||||
Notional | [1] | 177,233,869 | 202,081,214 | 196,887,188 |
Fair Value | 44,487,274 | 57,294,179 | 24,311,485 | |
"Swap" | Assets | CDI (Interbank Deposit Rates) | ||||
Trading | ||||
Notional | [1] | 36,135,015 | 33,289,522 | 44,868,680 |
Fair Value | 24,267,591 | 22,409,496 | 22,759,822 | |
"Swap" | Assets | Fixed Interest Rate - Real | ||||
Trading | ||||
Notional | [1] | 47,968,999 | 95,700,715 | 126,300,261 |
Fair Value | 0 | 0 | 0 | |
"Swap" | Assets | Indexed to Price and Interest Rates | ||||
Trading | ||||
Notional | [1] | 2,581,215 | 5,592,892 | 9,225,789 |
Fair Value | 0 | 0 | 0 | |
"Swap" | Assets | Foreign Currency | ||||
Trading | ||||
Notional | [1] | 90,495,240 | 67,493,635 | 16,492,458 |
Fair Value | 20,219,683 | 34,884,683 | 1,551,663 | |
"Swap" | Assets | Others | ||||
Trading | ||||
Notional | [1] | 53,400 | 4,450 | 0 |
Fair Value | 0 | 0 | 0 | |
Options | ||||
Trading | ||||
Notional | [1] | 335,073,080 | 190,061,609 | 175,841,405 |
Fair Value | 153,149 | 168,034 | (230,482) | |
Options | Sold Position | ||||
Trading | ||||
Notional | [1] | 185,996,284 | 102,557,776 | 91,957,439 |
Fair Value | (563,787) | (385,183) | (1,166,002) | |
Options | Call Option - US Dollar | Sold Position | ||||
Trading | ||||
Notional | [1] | 7,615,856 | 5,595,163 | 4,314,988 |
Fair Value | (101,034) | (117,059) | (141,172) | |
Options | Put Option - US Dollar | Sold Position | ||||
Trading | ||||
Notional | [1] | 12,160,912 | 5,919,598 | 7,390,733 |
Fair Value | (169,431) | (77,145) | (952,407) | |
Options | Call Option - Other | Sold Position | ||||
Trading | ||||
Notional | [1] | 31,679,919 | 19,880,180 | 30,441,646 |
Fair Value | (66,002) | (35,961) | (46,940) | |
Options | Interbank Market | Sold Position | ||||
Trading | ||||
Notional | [1] | 29,609,298 | 19,151,110 | 27,597,764 |
Fair Value | (13,195) | (515) | (4,087) | |
Options | Others | Sold Position | ||||
Trading | ||||
Notional | [1],[2] | 2,070,621 | 729,070 | 2,843,882 |
Fair Value | [2] | (52,807) | (35,446) | (42,853) |
Options | Put Option - Other | Sold Position | ||||
Trading | ||||
Notional | [1] | 134,539,597 | 71,162,835 | 49,810,072 |
Fair Value | (227,320) | (155,018) | (25,483) | |
Options | Interbank Market | Sold Position | ||||
Trading | ||||
Notional | [1] | 133,703,672 | 70,494,622 | 49,245,495 |
Fair Value | (179,841) | (126,743) | (5,793) | |
Options | Others | Sold Position | ||||
Trading | ||||
Notional | [1],[2] | 835,925 | 668,213 | 564,577 |
Fair Value | [2] | (47,479) | (28,275) | (19,690) |
Options | Purchased Position | ||||
Trading | ||||
Notional | [1] | 149,076,796 | 87,503,833 | 83,883,966 |
Fair Value | 716,936 | 553,217 | 935,520 | |
Options | Purchased Position | Call Option - US Dollar | ||||
Trading | ||||
Notional | [1] | 14,518,058 | 9,369,821 | 12,693,748 |
Fair Value | 239,079 | 169,542 | 181,463 | |
Options | Purchased Position | Put Option - US Dollar | ||||
Trading | ||||
Notional | [1] | 8,893,620 | 5,130,392 | 3,788,161 |
Fair Value | 90,736 | 42,389 | 392,048 | |
Options | Purchased Position | Call Option - Other | ||||
Trading | ||||
Notional | [1] | 3,118,344 | 1,953,481 | 20,115,932 |
Fair Value | 131,297 | 59,220 | 62,517 | |
Options | Purchased Position | Interbank Market | ||||
Trading | ||||
Notional | [1] | 639,488 | 1,185,310 | 17,391,500 |
Fair Value | 4,537 | 389 | 7,062 | |
Options | Purchased Position | Others | ||||
Trading | ||||
Notional | [1],[2] | 2,478,856 | 768,171 | 2,724,432 |
Fair Value | [2] | 126,760 | 58,831 | 55,455 |
Options | Purchased Position | Put Option - Other | ||||
Trading | ||||
Notional | [1] | 122,546,774 | 71,050,139 | 47,286,125 |
Fair Value | 255,824 | 282,066 | 299,492 | |
Options | Purchased Position | Interbank Market | ||||
Trading | ||||
Notional | [1] | 121,782,816 | 70,295,282 | 46,106,600 |
Fair Value | 217,726 | 257,943 | 18,029 | |
Options | Purchased Position | Others | ||||
Trading | ||||
Notional | [1],[2] | 763,958 | 754,857 | 1,179,525 |
Fair Value | [2] | 38,098 | 24,123 | 281,463 |
Future Contracts | ||||
Trading | ||||
Notional | [1] | 289,508,200 | 161,725,596 | 104,651,180 |
Fair Value | 0 | 0 | 0 | |
Future Contracts | Sold Position | ||||
Trading | ||||
Notional | [1] | 203,304,466 | 106,919,574 | 64,254,724 |
Fair Value | 0 | 0 | 0 | |
Future Contracts | Sold Position | Exchange Coupon (DDI) | ||||
Trading | ||||
Notional | [1] | 146,948,795 | 55,016,928 | 15,048,490 |
Fair Value | 0 | 0 | 0 | |
Future Contracts | Sold Position | Interest Rates (DI1 and DIA) | ||||
Trading | ||||
Notional | [1] | 54,160,203 | 51,135,994 | 29,047,678 |
Fair Value | 0 | 0 | 0 | |
Future Contracts | Sold Position | Foreign Currency | ||||
Trading | ||||
Notional | [1] | 1,992,574 | 745,849 | 17,384,256 |
Fair Value | 0 | 0 | 0 | |
Future Contracts | Sold Position | Indexes | ||||
Trading | ||||
Notional | [1],[3] | 202,894 | 20,803 | 185,506 |
Fair Value | [3] | 0 | 0 | 0 |
Future Contracts | Sold Position | Treasury Bonds/Notes | ||||
Trading | ||||
Notional | [1] | 0 | 0 | 2,588,794 |
Fair Value | 0 | 0 | 0 | |
Future Contracts | Purchased Position | ||||
Trading | ||||
Notional | [1] | 86,203,734 | 54,806,022 | 40,396,456 |
Fair Value | 0 | 0 | 0 | |
Future Contracts | Purchased Position | Exchange Coupon (DDI) | ||||
Trading | ||||
Notional | [1] | 20,590,068 | 9,616,936 | 14,473,180 |
Fair Value | 0 | 0 | 0 | |
Future Contracts | Purchased Position | Interest Rates (DI1 and DIA) | ||||
Trading | ||||
Notional | [1] | 32,690,685 | 26,456,303 | 23,756,523 |
Fair Value | 0 | 0 | 0 | |
Future Contracts | Purchased Position | Foreign Currency | ||||
Trading | ||||
Notional | [1] | 32,456,813 | 16,733,437 | 1,393,538 |
Fair Value | 0 | 0 | 0 | |
Future Contracts | Purchased Position | Indexes | ||||
Trading | ||||
Notional | [1],[3] | 466,168 | 1,780,311 | 195,160 |
Fair Value | [3] | 0 | 0 | 0 |
Future Contracts | Purchased Position | Others | ||||
Trading | ||||
Notional | [1] | 0 | 219,035 | 578,055 |
Fair Value | 0 | 0 | 0 | |
Forward Contracts and Others | ||||
Trading | ||||
Notional | [1] | 90,910,841 | 47,823,561 | 50,853,154 |
Fair Value | 1,055,456 | (720,823) | 1,643,013 | |
Forward Contracts and Others | Sold Commitment | ||||
Trading | ||||
Notional | [1] | 52,244,572 | 24,317,465 | 29,988,984 |
Fair Value | (248,105) | (1,368,199) | (1,743,334) | |
Forward Contracts and Others | Currencies | Sold Commitment | ||||
Trading | ||||
Notional | [1] | 51,958,529 | 22,096,104 | 29,911,406 |
Fair Value | (252,160) | (1,364,617) | (1,826,965) | |
Forward Contracts and Others | Others | Sold Commitment | ||||
Trading | ||||
Notional | [1] | 286,043 | 2,221,361 | 77,578 |
Fair Value | 4,055 | (3,582) | 83,631 | |
Forward Contracts and Others | Purchased Commitment | ||||
Trading | ||||
Notional | [1] | 38,666,269 | 23,506,096 | 20,864,170 |
Fair Value | 1,303,561 | 647,376 | 3,386,347 | |
Forward Contracts and Others | Purchased Commitment | Currencies | ||||
Trading | ||||
Notional | [1] | 38,095,625 | 21,525,220 | 19,951,984 |
Fair Value | 1,250,706 | 618,007 | 3,391,275 | |
Forward Contracts and Others | Purchased Commitment | Others | ||||
Trading | ||||
Notional | [1] | 570,644 | 1,980,876 | 912,186 |
Fair Value | R$ 52855 | R$ 29369 | R$ 4928 | |
[1] | Nominal value of updated contracts. | |||
[2] | Includes options of index, mainly being options involving US treasury, shares and stock indexes. | |||
[3] | Includes Bovespa and S&P index. |
Derivative financial instrume_5
Derivative financial instruments and Short positions (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
"Swap" | ||||
Derivatives Financial Instruments by Counterparty | ||||
Notional | R$ 177233869 | R$ 202081214 | R$ 196887188 | |
"Swap" | Customers | ||||
Derivatives Financial Instruments by Counterparty | ||||
Notional | 34,296,821 | 32,912,721 | ||
"Swap" | Related Parties | ||||
Derivatives Financial Instruments by Counterparty | ||||
Notional | 32,669,900 | 19,599,395 | ||
"Swap" | Financial Institutions | ||||
Derivatives Financial Instruments by Counterparty | ||||
Notional | [1] | 110,267,148 | 149,569,098 | |
Options | ||||
Derivatives Financial Instruments by Counterparty | ||||
Notional | 335,073,080 | 190,061,609 | 175,841,405 | |
Options | Customers | ||||
Derivatives Financial Instruments by Counterparty | ||||
Notional | 14,636,017 | 11,263,513 | ||
Options | Related Parties | ||||
Derivatives Financial Instruments by Counterparty | ||||
Notional | 1,086,323 | 1,240,309 | ||
Options | Financial Institutions | ||||
Derivatives Financial Instruments by Counterparty | ||||
Notional | [1] | 319,350,740 | 177,557,787 | |
Future Contracts | ||||
Derivatives Financial Instruments by Counterparty | ||||
Notional | 289,508,200 | 161,725,596 | 104,651,180 | |
Future Contracts | Customers | ||||
Derivatives Financial Instruments by Counterparty | ||||
Notional | 0 | 0 | ||
Future Contracts | Related Parties | ||||
Derivatives Financial Instruments by Counterparty | ||||
Notional | 0 | 0 | ||
Future Contracts | Financial Institutions | ||||
Derivatives Financial Instruments by Counterparty | ||||
Notional | [1] | 289,508,200 | 161,725,596 | |
Forward Contracts and Others | ||||
Derivatives Financial Instruments by Counterparty | ||||
Notional | 90,910,841 | 47,823,561 | R$ 50853154 | |
Forward Contracts and Others | Customers | ||||
Derivatives Financial Instruments by Counterparty | ||||
Notional | 39,024,978 | 25,470,287 | ||
Forward Contracts and Others | Related Parties | ||||
Derivatives Financial Instruments by Counterparty | ||||
Notional | 48,641,894 | 18,816,991 | ||
Forward Contracts and Others | Financial Institutions | ||||
Derivatives Financial Instruments by Counterparty | ||||
Notional | [1] | R$ 3243969 | R$ 3536283 | |
[1] | Includes trades with B3 S.A. and other securities and commodities exchanges. |
Derivative financial instrume_6
Derivative financial instruments and Short positions (Details 4) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
"Swap" | |||
Derivatives Financial Instruments by Maturity | |||
Notional | R$ 177233869 | R$ 202081214 | R$ 196887188 |
"Swap" | Up to 3 Months | |||
Derivatives Financial Instruments by Maturity | |||
Notional | 12,347,864 | 20,705,247 | |
"Swap" | From 3 to 12 Months | |||
Derivatives Financial Instruments by Maturity | |||
Notional | 70,975,477 | 51,021,102 | |
"Swap" | Over 12 Months | |||
Derivatives Financial Instruments by Maturity | |||
Notional | 93,910,528 | 130,354,865 | |
Options | |||
Derivatives Financial Instruments by Maturity | |||
Notional | 335,073,080 | 190,061,609 | 175,841,405 |
Options | Up to 3 Months | |||
Derivatives Financial Instruments by Maturity | |||
Notional | 63,376,042 | 46,139,545 | |
Options | From 3 to 12 Months | |||
Derivatives Financial Instruments by Maturity | |||
Notional | 220,982,952 | 89,403,700 | |
Options | Over 12 Months | |||
Derivatives Financial Instruments by Maturity | |||
Notional | 50,714,086 | 54,518,364 | |
Future Contracts | |||
Derivatives Financial Instruments by Maturity | |||
Notional | 289,508,200 | 161,725,596 | 104,651,180 |
Future Contracts | Up to 3 Months | |||
Derivatives Financial Instruments by Maturity | |||
Notional | 159,221,909 | 65,489,476 | |
Future Contracts | From 3 to 12 Months | |||
Derivatives Financial Instruments by Maturity | |||
Notional | 67,578,078 | 55,490,159 | |
Future Contracts | Over 12 Months | |||
Derivatives Financial Instruments by Maturity | |||
Notional | 62,708,213 | 40,745,961 | |
Forward Contracts and Others | |||
Derivatives Financial Instruments by Maturity | |||
Notional | 90,910,841 | 47,823,561 | R$ 50853154 |
Forward Contracts and Others | Up to 3 Months | |||
Derivatives Financial Instruments by Maturity | |||
Notional | 40,186,310 | 25,015,557 | |
Forward Contracts and Others | From 3 to 12 Months | |||
Derivatives Financial Instruments by Maturity | |||
Notional | 31,255,384 | 14,250,495 | |
Forward Contracts and Others | Over 12 Months | |||
Derivatives Financial Instruments by Maturity | |||
Notional | R$ 19469147 | R$ 8557509 |
Derivative financial instrume_7
Derivative financial instruments and Short positions (Details 5) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
"Swap" | |||||
Derivatives by Market Trading | |||||
Notional | R$ 177233869 | R$ 202081214 | R$ 196887188 | ||
"Swap" | Stock Exchange | |||||
Derivatives by Market Trading | |||||
Notional | [1] | 39,880,578 | 0 | ||
"Swap" | Cetip | |||||
Derivatives by Market Trading | |||||
Notional | 0 | 67,112,505 | |||
"Swap" | Over the Counter | |||||
Derivatives by Market Trading | |||||
Notional | 137,353,291 | 134,968,709 | |||
Options | |||||
Derivatives by Market Trading | |||||
Notional | 335,073,080 | 190,061,609 | 175,841,405 | ||
Options | Stock Exchange | |||||
Derivatives by Market Trading | |||||
Notional | [1] | 307,644,530 | 0 | ||
Options | Cetip | |||||
Derivatives by Market Trading | |||||
Notional | 0 | 172,144,700 | |||
Options | Over the Counter | |||||
Derivatives by Market Trading | |||||
Notional | 27,428,550 | 17,916,909 | |||
Future Contracts | |||||
Derivatives by Market Trading | |||||
Notional | 289,508,200 | 161,725,596 | 104,651,180 | ||
Future Contracts | Stock Exchange | |||||
Derivatives by Market Trading | |||||
Notional | [1] | 289,508,200 | 0 | ||
Future Contracts | Cetip | |||||
Derivatives by Market Trading | |||||
Notional | 0 | 161,725,596 | |||
Future Contracts | Over the Counter | |||||
Derivatives by Market Trading | |||||
Notional | 0 | 0 | |||
Forward Contracts and Others | |||||
Derivatives by Market Trading | |||||
Notional | 90,910,841 | 47,823,561 | R$ 50853154 | ||
Forward Contracts and Others | Stock Exchange | |||||
Derivatives by Market Trading | |||||
Notional | 323,413 | 0 | [1] | ||
Forward Contracts and Others | Cetip | |||||
Derivatives by Market Trading | |||||
Notional | 0 | 395,212 | |||
Forward Contracts and Others | Over the Counter | |||||
Derivatives by Market Trading | |||||
Notional | R$ 90587428 | R$ 47428349 | |||
[1] | Includes trades with B3 S.A. |
Derivative financial instrume_8
Derivative financial instruments and Short positions (Details 6) R$ in Thousands | Dec. 31, 2018BRL (R$) |
Nominal Value Retained Risk Total Rate of Return Swap | |
Swaps | |
Credit Swaps | R$ 1959128 |
Total | 1,959,128 |
Nominal Value Transferred Risk - Credit Swap | |
Swaps | |
Credit Swaps | 416,541 |
Total | R$ 416541 |
Derivative financial instrume_9
Derivative financial instruments and Short positions (Details 7) - Maximum Potential for Future Payments - Gross R$ in Thousands | Dec. 31, 2018BRL (R$) |
Per Instrument | |
CDS | R$ 1959128 |
Total | 1,959,128 |
Per Risk Classification | |
Below Investment Grade | 1,959,128 |
Total | 1,959,128 |
Per Reference Entity | |
Brazilian Government | 1,959,128 |
Total | 1,959,128 |
Over 12 Months | |
Per Instrument | |
CDS | 1,959,128 |
Total | 1,959,128 |
Per Risk Classification | |
Below Investment Grade | 1,959,128 |
Total | 1,959,128 |
Per Reference Entity | |
Brazilian Government | 1,959,128 |
Total | R$ 1959128 |
Derivative financial instrum_10
Derivative financial instruments and Short positions (Details 8) - Hedge Structure - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Effective Portion Accumulated | |||
Fair Value Hedge | |||
Brazilian Treasury Bonds (LTN, NTN-F) | R$ 1381156 | R$ 388446 | R$ 0 |
Eurobonds | 0 | 0 | 13,163 |
Bonds (LEA) | (191,472) | (1,200) | 0 |
Resolution 2770 | 689 | 304 | 0 |
Trade Finance Off | (58,020) | (57,386) | 20,471 |
Total | (1,629,959) | (446,728) | 33,634 |
Portion Ineffective | |||
Fair Value Hedge | |||
Brazilian Treasury Bonds (LTN, NTN-F) | 0 | 0 | 0 |
Eurobonds | 0 | 0 | 0 |
Bonds (LEA) | 0 | 0 | 0 |
Resolution 2770 | 0 | 0 | 0 |
Trade Finance Off | 0 | 0 | 0 |
Total | R$ 0 | R$ 0 | R$ 0 |
Derivative financial instrum_11
Derivative financial instruments and Short positions (Details 9) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Hedge Instruments | Swap contract | |||||
Hedge | |||||
Adjustment to Market | R$ 118807 | R$ 95672 | R$ 26703 | ||
Fair Value | (98,020) | (130,683) | (136,467) | ||
Hedge Instruments | Swap contract | Liabilities | |||||
Hedge | |||||
Adjustment to Market | (175,440) | (108,626) | (38,189) | ||
Fair Value | (4,496,871) | (3,136,349) | (1,182,479) | ||
Hedge Instruments | Swap contract | CDI (Interbank Deposit Rates) | Liabilities | |||||
Hedge | |||||
Adjustment to Market | [1],[2] | (63,971) | (21,380) | (18,395) | |
Fair Value | [1],[2] | (1,739,553) | (474,398) | (804,059) | |
Hedge Instruments | Swap contract | Indexed to Foreign Currency - Pre Dollar | Liabilities | |||||
Hedge | |||||
Adjustment to Market | [3] | (10,030) | (16,303) | (1,103) | |
Fair Value | [3] | (201,819) | (225,857) | (17,676) | |
Hedge Instruments | Swap contract | Indexed to Foreign Currency - US Dollar | Liabilities | |||||
Hedge | |||||
Adjustment to Market | [4] | (16,325) | (20,109) | (14,958) | |
Fair Value | [4] | (301,011) | (261,915) | (323,197) | |
Hedge Instruments | Swap contract | Fixed Interest Rate - Real | Liabilities | |||||
Hedge | |||||
Adjustment to Market | [5],[6] | (43,801) | 22 | (3,733) | |
Fair Value | [5],[6] | (1,701,759) | (1,640,708) | (37,547) | |
Hedge Instruments | Swap contract | Indexed to Foreign Currency - Colombian Peso | Liabilities | |||||
Hedge | |||||
Adjustment to Market | [7] | (5,197) | (13,863) | 0 | |
Fair Value | [7] | (195,671) | (219,392) | 0 | |
Hedge Instruments | Swap contract | Indexed to Foreign Currency - Pre Euro | Liabilities | |||||
Hedge | |||||
Adjustment to Market | [8] | (36,116) | (36,993) | 0 | |
Fair Value | [8] | (357,058) | (314,079) | 0 | |
Hedge Instruments | Swap contract | Assets | |||||
Hedge | |||||
Adjustment to Market | 56,633 | 12,954 | 11,486 | ||
Fair Value | 4,398,851 | 3,005,666 | 1,046,012 | ||
Hedge Instruments | Swap contract | Assets | CDI (Interbank Deposit Rates) | |||||
Hedge | |||||
Adjustment to Market | [3],[5] | (1,057) | (357) | 0 | |
Fair Value | [3],[5] | 1,722,515 | 1,818,366 | 0 | |
Hedge Instruments | Swap contract | Assets | Indexed to Foreign Currency - Pre Dollar | |||||
Hedge | |||||
Adjustment to Market | [1] | 0 | 320 | 1,103 | |
Fair Value | [1] | 0 | 8,742 | 17,678 | |
Hedge Instruments | Swap contract | Assets | Indexed to Foreign Currency - USD/BRL - Dollar | |||||
Hedge | |||||
Adjustment to Market | [2],[6],[8] | 24,411 | (23,585) | (8,957) | |
Fair Value | [2],[6],[8] | 2,161,661 | 691,872 | 744,260 | |
Hedge Instruments | Swap contract | Assets | Indexed to Foreign Currency - Euro | |||||
Hedge | |||||
Adjustment to Market | [4],[7] | 33,279 | 36,576 | 19,340 | |
Fair Value | [4],[7] | 514,675 | 486,686 | 284,074 | |
Object of Hedge | Liabilities | |||||
Hedge | |||||
Adjustment to Market | 0 | 0 | 12,830 | ||
Fair Value | 0 | 0 | (803,929) | ||
Object of Hedge | Assets | |||||
Hedge | |||||
Adjustment to Market | 84,343 | 77,623 | 23,165 | ||
Fair Value | 4,334,737 | 3,126,828 | 693,132 | ||
Object of Hedge | Assets | Promissory Notes - NP | |||||
Hedge | |||||
Adjustment to Market | 31,518 | 445 | 7,878 | ||
Fair Value | 852,029 | 125,973 | 146,392 | ||
Object of Hedge | Assets | Debt instruments | |||||
Hedge | |||||
Adjustment to Market | (5,592) | (1,873) | 7,878 | ||
Fair Value | 2,494,123 | 1,744,502 | 146,392 | ||
Object of Hedge | Assets | CDI (Interbank Deposit Rates) | Debt instruments | |||||
Hedge | |||||
Adjustment to Market | [1],[2] | 28,046 | 354 | 2,775 | |
Fair Value | 811,906 | [1],[2] | 119,892 | 108,845 | |
Object of Hedge | Assets | Fixed Interest Rate - Real | Debt instruments | |||||
Hedge | |||||
Adjustment to Market | [6] | 3,472 | 91 | 5,103 | |
Fair Value | [6] | 40,123 | 6,082 | 37,547 | |
Object of Hedge | Assets | National Treasury Notes - NTN F | Debt instruments | |||||
Hedge | |||||
Adjustment to Market | [5] | (37,110) | (2,318) | 0 | |
Fair Value | [5] | 1,642,094 | 1,618,529 | 0 | |
Object of Hedge | Assets | Loans and Receivables | |||||
Hedge | |||||
Adjustment to Market | 89,935 | 79,496 | 15,287 | ||
Fair Value | 1,840,614 | 1,382,326 | 546,740 | ||
Object of Hedge | Assets | Loans and Receivables | Indexed to Foreign Currency - US Dollar | |||||
Hedge | |||||
Adjustment to Market | [4] | 1,315 | 4,319 | 4,809 | |
Fair Value | [4] | 299,403 | 288,420 | 323,780 | |
Object of Hedge | Assets | Loans and Receivables | Indexed to Foreign Currency - Pre Dollar | |||||
Hedge | |||||
Adjustment to Market | [3] | 10,019 | 16,416 | 0 | |
Fair Value | [3] | 200,490 | 224,943 | 0 | |
Object of Hedge | Assets | Loans and Receivables | CDI (Interbank Deposit Rates) | |||||
Hedge | |||||
Adjustment to Market | [2] | 40,150 | 16,401 | 10,478 | |
Fair Value | [2] | 766,399 | 352,071 | 222,960 | |
Object of Hedge | Assets | Loans and Receivables | Fixed Interest Rate - Real | |||||
Hedge | |||||
Adjustment to Market | [6] | 1,533 | 3,900 | 0 | |
Fair Value | [6] | 33,063 | 21,077 | 0 | |
Object of Hedge | Assets | Loans and Receivables | Indexed to Foreign Currency - Colombian Peso | |||||
Hedge | |||||
Adjustment to Market | [7] | 64 | (2,898) | 0 | |
Fair Value | [7] | 190,558 | 173,990 | 0 | |
Object of Hedge | Assets | Loans and Receivables | Indexed to Foreign Currency - Pre Euro | |||||
Hedge | |||||
Adjustment to Market | [8] | 36,854 | 41,358 | 0 | |
Fair Value | [8] | 350,701 | 321,825 | 0 | |
Object of Hedge | Foreign Borrowings | Liabilities | |||||
Hedge | |||||
Adjustment to Market | 0 | 0 | 12,830 | ||
Fair Value | 0 | 0 | (803,929) | ||
Object of Hedge | Foreign Borrowings | Indexed to Foreign Currency - US Dollar | Liabilities | |||||
Hedge | |||||
Adjustment to Market | [2] | 0 | 0 | 12,830 | |
Fair Value | [2] | R$ 0 | R$ 0 | R$ 803929 | |
[1] | Passive instruments whose hedged items are securities represented by promissory notes indexed in Certificates of Interbank Deposits (CDI) with market value of R$811,906 (12/31/2017 - R$109,538). | ||||
[2] | These are passive instruments whose hedge items are credit operations and securities represented by promissory notes indexed in interbank deposit certificates (CDI), with market value of credit operations of R$766,399 (12/31/2017 - R$352,071) and in December 31, 2017, promissory notes in the amount of R$10,354. | ||||
[3] | These are passive instruments whose hedged items are credit operations indexed in foreign currency - US dollar in the market value of R$200,491 (12/31/2017 - R$224,943). | ||||
[4] | These are passive instruments whose hedge items are credit operations indexed in foreign currency - US dollar with a market value of R$299,404 (12/31/2017 - R$288,420). | ||||
[5] | These are obligations over instruments whose hedged items are pre-fixed government securities with a market value e of R$1,624,094 (12/31/2017 - R$1,618,529). | ||||
[6] | These are passive instruments whose hedged items are securities and securities represented by promissory notes indexed to Real interest rates with market value of R$40,124 (12/31/2017 - R$6,082 and 12/31/2016 - R$37,547) and credit operations in the amount of R$33,063 (12/31/2017 - R$21,077). | ||||
[7] | These are passive instruments whose hedged items are credit operations indexed in foreign currency - Colombian peso with market value of R$190,559 (12/31/2017 - R$173,990). | ||||
[8] | These are passive instruments whose hedged items are credit operations indexed in foreign currency - euro at the market value of R$350,701 (12/31/2017 - R$321,825). |
Derivative financial instrum_12
Derivative financial instruments and Short positions (Details 10) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Hedge Instruments Reference Value [Abstract] | ||
Swap Contracts | R$ 34513380 | R$ 22206615 |
Interest Rate (DI1 and DIA) | 33,861,121 | 22,206,615 |
Indexed to Price - IPCA (DAP) | R$ 652259 | R$ 0 |
Derivative financial instrum_13
Derivative financial instruments and Short positions (Details 11) - Assets - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Object of Hedge | ||
Adjustment to Market | R$ 968329 | R$ 364434 |
Fair Value | 36,985,493 | 24,779,831 |
Securities - Available for Sale Government Securities | ||
Object of Hedge | ||
Adjustment to Market | 937,017 | 364,434 |
Fair Value | 36,377,478 | 24,779,831 |
Securities - Available for Sale Government Securities | National Treasury Bills - LTN | ||
Object of Hedge | ||
Adjustment to Market | 357,330 | 219,611 |
Fair Value | 24,650,965 | 13,893,932 |
Securities - Available for Sale Government Securities | National Treasury Notes - NTN F | ||
Object of Hedge | ||
Adjustment to Market | 517,063 | 144,823 |
Fair Value | 10,510,482 | 10,885,899 |
Private Securities | ||
Object of Hedge | ||
Adjustment to Market | 31,312 | 0 |
Fair Value | 608,015 | 0 |
Private Securities | Debentures | ||
Object of Hedge | ||
Adjustment to Market | 31,312 | 0 |
Fair Value | R$ 608015 | R$ 0 |
Derivative financial instrum_14
Derivative financial instruments and Short positions (Details 12) - Hedge Structure - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Effective Portion Accumulated | |||
Cash Flow Hedge | |||
Eurobonds | R$ 8925 | R$ 25576 | R$ 20535 |
Trade Finance Off | (16,453) | (94,896) | 0 |
Government Securities (LFT) | 331,922 | 129,995 | 0 |
Bank Deposit Certificate - CDB | 1,225 | 129,995 | 0 |
Loans and Receivables | 0 | 0 | 174,956 |
Total | 307,769 | 139,518 | 154,421 |
Portion Ineffective | |||
Cash Flow Hedge | |||
Eurobonds | 0 | 0 | 0 |
Trade Finance Off | (3,981) | 9,267 | 0 |
Government Securities (LFT) | 0 | 0 | 0 |
Bank Deposit Certificate - CDB | 0 | 0 | 0 |
Loans and Receivables | 0 | 0 | 0 |
Total | R$ 3981 | R$ 9267 | R$ 0 |
Derivative financial instrum_15
Derivative financial instruments and Short positions (Details 13) - Swap contract - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Hedge Instruments | ||||
Adjustment to Fair Value | R$ 12757 | R$ 25142 | R$ 27261 | |
Fair Value | 218,424 | 160,114 | 48,169 | |
Liabilities | ||||
Hedge Instruments | ||||
Adjustment to Fair Value | 24,227 | (122,988) | (164,925) | |
Fair Value | (2,202,776) | (2,200,956) | (1,904,020) | |
CDI (Interbank Deposit Rates) | Liabilities | ||||
Hedge Instruments | ||||
Adjustment to Fair Value | [1],[2] | (504) | (5,735) | (995) |
Fair Value | [1],[2] | (160,754) | (147,925) | (341,938) |
Indexed to Foreign Currency - Pre Reais | Liabilities | ||||
Hedge Instruments | ||||
Adjustment to Fair Value | [1] | 0 | 0 | (1,288) |
Fair Value | [1] | 0 | 0 | (199,954) |
Indexed to Foreign Currency - Pre Euro | Liabilities | ||||
Hedge Instruments | ||||
Adjustment to Fair Value | [1] | 92,505 | 13,639 | (102,998) |
Fair Value | [1] | (972,290) | (895,399) | (805,326) |
Indexed to Foreign Currency - Dollar | Liabilities | ||||
Hedge Instruments | ||||
Adjustment to Fair Value | [3] | (67,774) | (130,892) | (59,367) |
Fair Value | [3] | (1,069,732) | (1,157,632) | (548,684) |
Indexed to Foreign Currency - Reais | Liabilities | ||||
Hedge Instruments | ||||
Adjustment to Fair Value | [3] | 0 | 0 | (277) |
Fair Value | [3] | 0 | 0 | (8,118) |
Assets | ||||
Hedge Instruments | ||||
Adjustment to Fair Value | (11,470) | 97,846 | 137,664 | |
Fair Value | 2,421,200 | 2,361,070 | 1,952,189 | |
Assets | Indexed to Foreign Currency - Pre Dollar | ||||
Hedge Instruments | ||||
Adjustment to Fair Value | [1] | (123,696) | (42,149) | 84,812 |
Fair Value | [1] | 1,131,928 | 992,879 | 1,477,821 |
Assets | Indexed to Foreign Currency - Euro | ||||
Hedge Instruments | ||||
Adjustment to Fair Value | [3] | 111,124 | 134,435 | 52,852 |
Fair Value | [3] | 1,122,779 | 1,223,004 | 474,368 |
Assets | Indexed to Foreign Currency - USD/BRL - Dollar | ||||
Hedge Instruments | ||||
Adjustment to Fair Value | [2] | 1,102 | 5,560 | 0 |
Fair Value | [2] | R$ 166493 | R$ 145187 | R$ 0 |
[1] | Operation with maturity date as April 1st, 2021 (12/31/2017 - operation with maturity date as April 1st, 2021), which hedge objects are securities represented by Brazilian external bonds. | |||
[2] | Operations with maturity dates between April 2019 and February 2020 (12/31/2017 - operations with maturity dates between January and April, 2018), which hedge objects in 2018 are loans and in 2017 are securities represented by promissory notes. | |||
[3] | Operations with maturity dates between January 2019 and February 2022 (12/31/2017 - operations with maturity dates between January 2018 and September 2022 and 12/31/2016 - operations with maturity dates between January 2017 and December 2025), which hedge objects are credit operations with credit entities. |
Derivative financial instrum_16
Derivative financial instruments and Short positions (Details 14) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Future Contracts | ||||
Hedge Instruments | ||||
Notional | R$ 44541938 | R$ 60299595 | R$ 80149530 | |
Future Contracts | Trade Finance Operations | ||||
Hedge Instruments | ||||
Notional | [1] | 44,000,952 | 54,995,334 | 80,149,530 |
Future Contracts | Trade Finance Operations | Foreign Currency - Dollar | ||||
Hedge Instruments | ||||
Notional | 9,408,707 | 3,362,582 | 450,571 | |
Future Contracts | Trade Finance Operations | Interest Rate (DI1 and DIA) | ||||
Hedge Instruments | ||||
Notional | 21,981,748 | 32,344,276 | 46,314,644 | |
Future Contracts | Trade Finance Operations | Interest Rate DDI1 | ||||
Hedge Instruments | ||||
Notional | 12,610,496 | 19,288,476 | 33,384,315 | |
Securities-available for sale | ||||
Hedge Instruments | ||||
Notional | 540,987 | 5,304,261 | 0 | |
Securities-available for sale | Interest Rate (DI1 and DIA) | ||||
Hedge Instruments | ||||
Notional | R$ 540987 | 5,304,261 | 0 | |
Government Securities | Interest Rate (DI1 and DIA) | ||||
Hedge Instruments | ||||
Notional | R$ 5304261 | R$ 0 | ||
[1] | Operations with maturity dates between January 2019 and September 2022 (12/31/2017 - operations with maturity dates between January 2018 and December 2020), which hedge objects are funding operations represented by Certificates of Interfinance Deposits - CDI, Bill of Exchange - LC and Financial Letter - LF. |
Derivative financial instrum_17
Derivative financial instruments and Short positions (Details 15) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Hedge Item Cost [Abstract] | ||||
Assets | R$ 19678934 | R$ 25697292 | R$ 27858923 | |
Lending Operations - Financing and Export Credit and Imports | [1],[2] | 10,113,706 | 8,295,191 | 10,816,780 |
Loans and Receivables | [1],[2],[3] | 6,704,113 | 9,972,640 | 13,870,897 |
Financial Assets Measured at Amortized Cost | [2] | 0 | 354,315 | 529,997 |
Brazilian Foreign Debt Bonds | [4] | 894,331 | 809,660 | 701,300 |
Available for sale - Promissory Notes - NP | [2],[3] | 1,653,969 | 1,194,266 | 1,939,949 |
Government Securities -LFT | [5] | 312,815 | 5,071,220 | 0 |
Liabilities | 0 | 0 | (1,332,972) | |
Foreign Borrowings | [2] | R$ 0 | R$ 0 | R$ 1332972 |
[1] | Operations with maturity dates between January 2019 and February 2022 (12/31/2017 - operations with maturity dates between January 2018 and September 2022 and 12/31/2016 - operations with maturity dates between January 2017 and December 2025), which hedge objects are credit operations with credit entities. | |||
[2] | Operations with maturity dates between January 2019 and September 2022 (12/31/2017 - operations with maturity dates between January 2018 and December 2020), which hedge objects are funding operations represented by Certificates of Interfinance Deposits - CDI, Bill of Exchange - LC and Financial Letter - LF. | |||
[3] | Operations with maturity dates between April 2019 and February 2020 (12/31/2017 - operations with maturity dates between January and April, 2018), which hedge objects in 2018 are loans and in 2017 are securities represented by promissory notes. | |||
[4] | Operation with maturity date as April 1st, 2021 (12/31/2017 - operation with maturity date as April 1st, 2021), which hedge objects are securities represented by Brazilian external bonds. | |||
[5] | Operations with maturity dates between February 2019 and December 2028 (12/31/2017 - operations with maturity dates between February 2018 and November 2026 and 12/31/2016 - operations with maturity dates between January 2017 and January 2018) and updated amount of R$16,738,641 (31/12/2017 - R$16,811,747 and 31/12/2016 - R$29,164,917) where the operations are derivatives future contracts in Dolar, DI and DDI. Those derivatives combined with trade finance operations are used to hedge the following objects: credit operations - import and export financing, loans, other credit operations and securities represented by promissory notes. |
Derivative financial instrum_18
Derivative financial instruments and Short positions (Details 16) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives Pledged As Guarantee [Abstract] | |||
Financial Treasury Bill - LFT | R$ 7552926 | R$ 708960 | R$ 1556804 |
National Treasury Bill - LTN | 3,392,886 | 4,371,286 | 4,636,644 |
National Treasury Notes - NTN | 873,134 | 1,193,315 | 27,598 |
Total | R$ 11818946 | R$ 6273561 | R$ 6221046 |
Derivative financial instrum_19
Derivative financial instruments and Short positions (Details Text) - BRL (R$) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash Flow Hedge Swaps And Future Contracts Mtm [Abstract] | |||
Credit | R$ 76534 | R$ 116441 | R$ 69489 |
To be realized in the next twelve months | 2,450 | 9,342 | |
Short positions | |||
Short positions | R$ 32695677 | R$ 32808392 | R$ 31694269 |
Loans and advances to clients_2
Loans and advances to clients (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Classification [Abstract] | ||||
Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss | R$ 619180 | R$ 0 | R$ 0 | |
Loans and Receivables | 0 | 272,420,157 | 252,002,774 | |
Financial Assets Measured At Amortized Cost | 301,072,207 | 0 | 0 | |
Of which: | ||||
Loans and receivables at amortized cost | 321,314,010 | 287,829,213 | 268,437,556 | |
Impairment losses | (20,241,803) | (15,409,056) | (16,434,782) | |
Loans and advances to customers, net | 301,691,387 | 272,420,157 | 252,002,774 | |
Loans and advances to customers, gross | 321,933,190 | 287,829,213 | 268,437,556 | |
Type: | ||||
Loans operations | [1] | 308,364,517 | 272,561,017 | 257,256,452 |
Lease Portfolio | 1,836,504 | 1,888,444 | 2,092,882 | |
Repurchase agreements | 509,147 | 403,415 | 308,483 | |
Other receivables | [2] | 11,223,022 | 12,976,337 | 8,779,739 |
Total | R$ 321933190 | R$ 287829213 | R$ 268437556 | |
[1] | Includes loans and other loans with credit characteristics. | |||
[2] | Refers substantially to Foreign Exchange Transactions and Other Receivables with credit granting characteristics. |
Loans and advances to clients_3
Loans and advances to clients (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loan Borrower Sector [Abstract] | |||
Commercial, and industrial | R$ 146293616 | R$ 140619110 | R$ 140992900 |
Real estate-construction | 36,515,352 | 34,808,681 | 36,650,011 |
Installment loans to individuals | 137,287,593 | 110,512,978 | 88,701,763 |
Lease financing | 1,836,629 | 1,888,444 | 2,092,882 |
Total | R$ 321933190 | R$ 287829213 | R$ 268437556 |
Loans and advances to clients_4
Loans and advances to clients (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Interest Rate Formula [Abstract] | |||
Fixed interest rate | R$ 240772724 | R$ 202592491 | R$ 178231509 |
Floating rate | 81,160,466 | 85,236,722 | 90,206,047 |
Total | R$ 321933190 | R$ 287829213 | R$ 268437556 |
Loans and advances to clients_5
Loans and advances to clients (Details 4) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Sector by Maturity | |||
Commercial, and industrial | R$ 146293616 | R$ 37241539 | R$ 41335876 |
Real estate | 36,515,352 | 34,808,681 | 36,650,011 |
Installment loans to individuals | 137,287,593 | 110,512,978 | 88,701,763 |
Lease financing | 1,836,629 | 1,888,444 | 2,092,882 |
Loans and advances to customers, gross | R$ 321933190 | R$ 184451642 | R$ 168780532 |
% of total | |||
Debt Sector by Maturity | |||
Commercial and industrial | 45.44% | 48.85% | 48.85% |
Real estate | 11.34% | 12.09% | 12.09% |
Installment loans to individuals | 42.64% | 38.40% | 38.40% |
Lease financing | 0.57% | 0.66% | 0.66% |
Loans and advances to customers, gross | 100.00% | 100.00% | 100.00% |
Less than 1 year | |||
Debt Sector by Maturity | |||
Commercial, and industrial | R$ 109802828 | R$ 103377571 | R$ 99657024 |
Real estate | 4,298,925 | 7,791,753 | 8,648,702 |
Installment loans to individuals | 71,433,099 | 62,078,225 | 52,205,927 |
Lease financing | 838,659 | 1,000,418 | 1,152,579 |
Loans and advances to customers, gross | R$ 186373511 | R$ 174247967 | R$ 161664232 |
Less than 1 year | % of total | |||
Debt Sector by Maturity | |||
Commercial and industrial | 58.92% | 61.65% | 61.65% |
Real estate | 2.31% | 5.35% | 5.35% |
Installment loans to individuals | 38.33% | 32.29% | 32.29% |
Lease financing | 0.45% | 0.71% | 0.71% |
Loans and advances to customers, gross | 100.00% | 100.00% | 100.00% |
Between 1 and 5 years | |||
Debt Sector by Maturity | |||
Commercial, and industrial | R$ 32538999 | R$ 31262492 | R$ 35789118 |
Real estate | 7,964,308 | 10,970,004 | 11,761,420 |
Installment loans to individuals | 57,808,600 | 39,393,699 | 30,867,880 |
Lease financing | 997,644 | 886,833 | 937,951 |
Loans and advances to customers, gross | R$ 99309551 | R$ 82513028 | R$ 79356369 |
Between 1 and 5 years | % of total | |||
Debt Sector by Maturity | |||
Commercial and industrial | 32.77% | 37.89% | 37.89% |
Real estate | 8.02% | 13.29% | 13.29% |
Installment loans to individuals | 58.21% | 47.74% | 47.74% |
Lease financing | 1.00% | 1.07% | 1.07% |
Loans and advances to customers, gross | 100.00% | 99.99% | 99.99% |
More than 5 years | |||
Debt Sector by Maturity | |||
Commercial, and industrial | R$ 3951789 | R$ 5979047 | R$ 5546758 |
Real estate | 24,252,119 | 16,046,924 | 16,239,889 |
Installment loans to individuals | 8,045,894 | 9,041,054 | 5,627,956 |
Lease financing | 326 | 1,193 | 2,352 |
Loans and advances to customers, gross | R$ 36250128 | R$ 31068218 | R$ 27416955 |
More than 5 years | % of total | |||
Debt Sector by Maturity | |||
Commercial and industrial | 10.90% | 19.25% | 19.25% |
Real estate | 66.90% | 51.65% | 51.65% |
Installment loans to individuals | 22.20% | 29.10% | 29.10% |
Lease financing | 0.00% | 0.00% | 0.00% |
Loans and advances to customers, gross | 100.00% | 100.00% | 100.00% |
Loans and advances to clients_6
Loans and advances to clients (Details 5) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Maturity [Abstract] | |||
Less than 1 Year | R$ 186373511 | R$ 174247968 | R$ 161664232 |
Between 1 and 5 years | 99,309,551 | 82,513,030 | 79,356,369 |
More than 5 years | 36,250,128 | 31,068,215 | 27,416,955 |
Loans and advances to customers, gross | 321,933,190 | 287,829,213 | 268,437,556 |
Internal risk classification | |||
Low | 240,440,294 | 226,098,497 | 207,889,639 |
Medium-low | 50,485,682 | 33,635,378 | 32,104,168 |
Medium | 11,967,262 | 10,423,293 | 10,940,879 |
Medium - high | 7,722,198 | 8,215,024 | 6,976,969 |
High | 11,317,754 | 9,457,021 | 10,525,901 |
Loans and advances to customers, gross | R$ 321933190 | R$ 287829213 | R$ 268437556 |
Loans and advances to clients_7
Loans and advances to clients (Details 6) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Impairment losses - Loans and receivables | |||
Balance at beginning of year | R$ 20723062 | R$ 18191126 | R$ 15411759 |
Impairment losses charged to income for the year | 13,540,105 | 13,492,072 | 14,383,935 |
Transfers between stages | 3,133,208 | ||
Movement of the period | 10,406,897 | ||
Of which: | |||
Commercial and industrial | 3,620,292 | 5,499,018 | 6,523,051 |
Real estate-construction | 192,901 | 471,366 | 369,431 |
Installment loans to individuals | 9,708,243 | 7,460,458 | 7,616,819 |
Lease financing | 18,669 | 61,230 | (125,366) |
Write-off of impaired balances against recorded impairment allowance | (11,293,852) | (13,421,560) | (11,604,568) |
Of which: | |||
Commercial and industrial | (3,981,414) | (5,715,903) | (4,553,166) |
Real estate-construction | (190,660) | (341,804) | (189,625) |
Installment loans to individuals | (7,099,553) | (7,312,310) | (6,810,997) |
Lease financing | (22,225) | (51,543) | (50,780) |
Balance at end of year | 22,969,315 | 18,261,638 | 18,191,126 |
Of which: | |||
Loans and advances to customers | 20,241,803 | 15,409,056 | 16,434,782 |
Loans and amounts due from credit institutions (Note 5) | 13,561 | 69,015 | 201,441 |
Provision for Debt Instruments (Note 6) | 2,713,951 | 2,783,567 | 1,554,903 |
Recoveries of loans previously charged off | 826,573 | 1,153,931 | 994,101 |
Of which: | |||
Commercial and industrial | 345,085 | 412,514 | 562,393 |
Real estate-construction | 103,433 | 209,940 | 102,826 |
Installment loans to individuals | 369,557 | 521,589 | 314,422 |
Lease financing | 8,498 | R$ 9888 | R$ 14460 |
Stage 1 | Credit losses expected in 12 months | |||
Impairment losses - Loans and receivables | |||
Balance at beginning of year | 3,833,553 | ||
Impairment losses charged to income for the year | 83,725 | ||
Transfers between stages | (1,096,539) | ||
Movement of the period | 1,180,264 | ||
Of which: | |||
Commercial and industrial | (311,546) | ||
Real estate-construction | (10,173) | ||
Installment loans to individuals | 406,011 | ||
Lease financing | (567) | ||
Of which: | |||
Balance at end of year | 3,917,278 | ||
Of which: | |||
Loans and advances to customers | 3,831,812 | ||
Provision for Debt Instruments (Note 6) | 85,465 | ||
Stage 2 | Expected credit losses over a useful life not subject to impairment | |||
Impairment losses - Loans and receivables | |||
Balance at beginning of year | 3,767,490 | ||
Impairment losses charged to income for the year | 389,100 | ||
Transfers between stages | (273,048) | ||
Movement of the period | 662,148 | ||
Of which: | |||
Commercial and industrial | (161,669) | ||
Real estate-construction | (28,581) | ||
Installment loans to individuals | 581,068 | ||
Lease financing | (1,718) | ||
Write-off of impaired balances against recorded impairment allowance | (377,471) | ||
Of which: | |||
Commercial and industrial | (132,770) | ||
Real estate-construction | (877) | ||
Installment loans to individuals | (243,824) | ||
Balance at end of year | 3,779,119 | ||
Of which: | |||
Loans and advances to customers | 3,727,264 | ||
Loans and amounts due from credit institutions (Note 5) | 13,561 | ||
Provision for Debt Instruments (Note 6) | 38,296 | ||
Stage 3 | Expected credit losses during the useful life subject to impairment | |||
Impairment losses - Loans and receivables | |||
Balance at beginning of year | 13,122,019 | ||
Impairment losses charged to income for the year | 13,067,280 | ||
Transfers between stages | 4,502,795 | ||
Movement of the period | 8,564,485 | ||
Of which: | |||
Commercial and industrial | 4,093,507 | ||
Real estate-construction | 231,655 | ||
Installment loans to individuals | 8,721,164 | ||
Lease financing | 20,954 | ||
Write-off of impaired balances against recorded impairment allowance | (10,916,381) | ||
Of which: | |||
Commercial and industrial | (3,848,644) | ||
Real estate-construction | (189,783) | ||
Installment loans to individuals | (6,855,729) | ||
Lease financing | (22,225) | ||
Balance at end of year | 15,272,918 | ||
Of which: | |||
Loans and advances to customers | 12,682,727 | ||
Provision for Debt Instruments (Note 6) | 2,590,190 | ||
Recoveries of loans previously charged off | 826,573 | ||
Of which: | |||
Commercial and industrial | 345,085 | ||
Real estate-construction | 103,433 | ||
Installment loans to individuals | 369,557 | ||
Lease financing | R$ 8498 |
Loans and advances to clients_8
Loans and advances to clients (Details 7) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Provision For Losses Due To Nonrecovery By Debtor Sector [Abstract] | |||
Commercial and industrial | R$ 10791702 | R$ 10338225 | R$ 10555109 |
Real estate -construction | 358,119 | 493,422 | 363,859 |
Installment loans to individuals | 11,768,124 | 7,373,969 | 7,225,822 |
Lease financing | 51,370 | 56,022 | 46,336 |
Total | R$ 22969315 | R$ 18261638 | R$ 18191126 |
Loans and advances to clients_9
Loans and advances to clients (Details 8) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans And Receivables Loans And Advances To Customers [Abstract] | |||
Balance at beginning of year on 01/01/2018 after the initial adoption IFRS 9) | R$ 19847987 | R$ 18887132 | R$ 18599379 |
Net additions | 13,871,666 | 13,679,423 | 11,892,321 |
Written-off assets | (11,293,852) | (13,421,560) | (11,604,568) |
Balance at end of year | R$ 22425801 | R$ 19144995 | R$ 18887132 |
Loans and advances to client_10
Loans and advances to clients (Details 9) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Assets Considered To Be Impaired [Abstract] | |||
With no Past-Due Balances or Less than 3 Months Past Due | R$ 12000867 | R$ 10844831 | R$ 10550548 |
With Balances Past Due by | |||
3 to 6 Months | 3,473,591 | 4,123,796 | 2,983,575 |
6 to 12 Months | 4,929,099 | 3,791,805 | 4,921,527 |
12 to 18 Months | 1,144,035 | 271,965 | 339,596 |
18 to 24 Months | 325,701 | 20,825 | 53,578 |
More than 24 Months | 552,508 | 91,773 | 38,308 |
Total | 22,425,801 | 19,144,995 | 18,887,132 |
Debt Sector | |||
Commercial and industrial | 11,832,302 | 11,993,953 | 11,628,655 |
Real estate - Construction | 1,035,352 | 781,886 | 718,514 |
Installment loans to individuals | 9,499,148 | 6,304,134 | 6,487,717 |
Lease financing | 58,999 | 65,022 | 52,246 |
Total | R$ 22425801 | R$ 19144995 | R$ 18887132 |
Loans and advances to client_11
Loans and advances to clients (Details 10) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loan past due not classified as impaired | |||
Commercial and industrial | R$ 4424143 | R$ 3559349 | R$ 4141349 |
Real estate - Construction | 4,527,432 | 4,879,563 | 5,201,709 |
Installment loans to individuals | 13,255,646 | 9,266,366 | 7,957,294 |
Financial Leasing | 167,741 | 176,528 | 108,607 |
Total | R$ 22374962 | R$ 17881806 | R$ 17408959 |
% of total loans past due for less than 90 days Member | |||
Loan past due not classified as impaired | |||
Commercial and industrial | 19.77% | 19.90% | 23.79% |
Mortgage loans | 20.23% | 27.29% | 29.88% |
Installment loans to individuals | 59.24% | 51.82% | 45.71% |
Financial Leasing | 0.75% | 0.99% | 0.62% |
Total | 100.00% | 100.00% | 100.00% |
Loans and advances to client_12
Loans and advances to clients (Details 11) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Gross Investment In Lease Transactions [Abstract] | |||
Overdue | R$ 4817 | R$ 11412 | R$ 16051 |
Due to: | |||
Up to 1 year | 975,183 | 1,057,023 | 1,207,473 |
From 1 to 5 years | 1,160,986 | 1,101,104 | 1,190,844 |
Over 5 years | 1,071 | 2,177 | 4,079 |
Total | R$ 2142057 | R$ 2171716 | R$ 2418447 |
Loans and advances to client_13
Loans and advances to clients (Details Text) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Impairment Losses Financial Assets Loans And Receivables [Abstract] | |||
Impairment losses financial assets - loans and receivables | R$ 12713532 | R$ 12338141 | R$ 13389834 |
Transfer of financial assets with retention of risks and benefits | |||
Loans and advances to clients | 122,271 | 431,397 | 783,967 |
Other financial liabilities - financial liabilities associated with assets transfers | R$ 126906 | R$ 428248 | R$ 774673 |
Non-current assets held for s_3
Non-current assets held for sale (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Non-current assets held for sale [Abstract] | ||||
Balance at beginning of year | R$ 1507548 | R$ 1418308 | R$ 1310033 | |
Loan repayments - repossession of assets | 785,139 | 524,497 | 834,903 | |
Capital Increase in Companies held for sale | 0 | 0 | 10,462 | |
Additions / disposals (net) due to change in the scope of consolidation | [1],[2] | (130,713) | 0 | (497,847) |
Sales | (563,607) | (434,553) | (239,291) | |
Others | 0 | (704) | 48 | |
Final balance, gross | 1,598,367 | 1,507,548 | 1,418,308 | |
Impairment losses | [3] | R$ 218136 | R$ 352092 | R$ 80423 |
Impairment as a percentage of foreclosed assets | 13.65% | 23.37% | 10.52% | |
Balance at end of year | R$ 1380231 | R$ 1155456 | R$ 1337885 | |
[1] | On June 30, 2018, The Management of Banco Santander revalued your strategy on the investment in the company Real TJK Empreendimento Imobiliario S.A. (current name for Rojo Entretenimento S.A.), a company that owns the Teatro Santander, and decided to transfer the company from non-current assets held to sale to associates and subsidiaries (Note 11). On December 31, 2018, the amount of this investment was R$0 (12/31/2017- R$130,713) in the Bank and Consolidated. | |||
[2] | On September 30, 2016, as a result of the non-expectation of sale of investment in BW Guirapa and controlled, from a market period, an administrator transferred the total of this balance to the caption of investments in affiliated and controlled companies in the country (Note 11). In 2017, as described at note 3, this investment was sold. | |||
[3] | In 2018, includes the amount of R$133,957 of provisions for devaluations on real estate and which were subsequently sold, constituted from valuation reports prepared by specialized external consulting, recorded as a provision for impairment losses, in 2017, this provision was R$271,670 (Note 43). |
Investments in associates and_3
Investments in associates and joint ventures (Details 1) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Jointly Controlled by Banco Santander | Banco RCI Brasil S.A. | ||||
Jointly Controlled | ||||
Name of joint venture | Banco RCI Brasil S.A. | Banco RCI Brasil S.A. | Banco RCI Brasil S.A. | |
Activity | Bank | Bank | Bank | |
Country | Brazil | Brazil | Brazil | |
Participation | 39.89% | 39.89% | 39.89% | |
Jointly Controlled by Banco Santander | Norchem Participações e Consultoria S.A. | ||||
Jointly Controlled | ||||
Name of joint venture | [1] | Norchem Participações e Consultoria S.A. | Norchem Participações e Consultoria S.A. | Norchem Participações e Consultoria S.A. |
Activity | [1] | Other Activities | Other Activities | Other Activities |
Country | [1] | Brazil | Brazil | Brazil |
Participation | [1] | 50.00% | 50.00% | 50.00% |
Jointly Controlled by Banco Santander | Cibrasec - Companhia Brasileira de Securitização | ||||
Jointly Controlled | ||||
Name of joint venture | [1],[2],[3],[4] | Cibrasec - Companhia Brasileira de Securitização | Cibrasec - Companhia Brasileira de Securitização | Cibrasec - Companhia Brasileira de Securitização |
Activity | [1],[2],[3],[4] | Securitization | Securitization | Securitization |
Country | [1],[2],[3],[4] | Brazil | Brazil | Brazil |
Participation | [1],[2],[3],[4] | 9.72% | 9.72% | 9.72% |
Jointly Controlled by Banco Santander | Estruturadora Brasileira de Projetos S.A. - EBP | ||||
Jointly Controlled | ||||
Name of joint venture | [1],[2],[5] | Estruturadora Brasileira de Projetos S.A. - EBP | Estruturadora Brasileira de Projetos S.A. - EBP | Estruturadora Brasileira de Projetos S.A. - EBP |
Activity | [1],[2],[5] | Other Activities | Other Activities | Other Activities |
Country | [1],[2],[5] | Brazil | Brazil | Brazil |
Participation | [1],[2],[5] | 11.11% | 11.11% | 11.11% |
Jointly Controlled by Banco Santander | Gestora de Inteligência de Crédito | ||||
Jointly Controlled | ||||
Name of joint venture | [6],[7],[8] | Gestora de Inteligência de Crédito | Gestora de Inteligência de Crédito | Gestora de Inteligência de Crédito |
Activity | [6],[7],[8] | Credit Bureau | Credit Bureau | Credit Bureau |
Country | [6],[7],[8] | Brazil | Brazil | Brazil |
Participation | [6],[7],[8] | 20.00% | 20.00% | 20.00% |
Jointly Controlled by Banco Santander | Campo Grande Empreendimentos | ||||
Jointly Controlled | ||||
Name of joint venture | [9] | Campo Grande Empreendimentos | Campo Grande Empreendimentos | Campo Grande Empreendimentos |
Activity | [9] | Other Activities | Other Activities | Other Activities |
Country | [9] | Brazil | Brazil | Brazil |
Participation | [9] | 25.32% | 25.32% | 25.32% |
Jointly Controlled by Banco Santander | Banco Hyundai Capital Brasil S.A. (formerly named BHJV Assessoria e Consultoria Empresarial Ltda.) | ||||
Jointly Controlled | ||||
Name of joint venture | [10] | Banco Hyundai Capital Brasil S.A. (formerly named BHJV Assessoria e Consultoria Empresarial Ltda.) | ||
Activity | [10] | Bank | ||
Country | [10] | Brazil | ||
Participation | [10] | 50.00% | ||
Jointly Controlled by Banco Santander | Santander Auto S.A. | ||||
Jointly Controlled | ||||
Name of joint venture | [11] | Santander Auto S.A. | ||
Activity | [11] | Other Activities | ||
Country | [11] | Brazil | ||
Participation | [11] | 50.00% | ||
Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações S.A.) | Webmotors S.A. | ||||
Jointly Controlled | ||||
Name of joint venture | [6],[12],[13] | Webmotors S.A. | Webmotors S.A. | Webmotors S.A. |
Activity | [6],[12],[13] | Other Activities | Other Activities | Other Activities |
Country | [6],[12],[13] | Brazil | Brazil | Brazil |
Participation | [6],[12],[13] | 70.00% | 70.00% | 70.00% |
Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações S.A.) | Tecnologia Bancária S.A. - TECBAN | ||||
Jointly Controlled | ||||
Name of joint venture | [1] | Tecnologia Bancária S.A. - TECBAN | Tecnologia Bancária S.A. - TECBAN | Tecnologia Bancária S.A. - TECBAN |
Activity | [1] | Other Activities | Other Activities | Other Activities |
Country | [1] | Brazil | Brazil | Brazil |
Participation | [1] | 19.81% | 19.81% | 19.81% |
Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações S.A.) | PSA Corretora de Seguros e Serviços Ltda. | ||||
Jointly Controlled | ||||
Name of joint venture | [14],[15],[16] | PSA Corretora de Seguros e Serviços Ltda. | PSA Corretora de Seguros e Serviços Ltda. | PSA Corretora de Seguros e Serviços Ltda. |
Activity | [14],[15],[16] | Insurance Broker | Insurance Broker | Insurance Broker |
Country | [14],[15],[16] | Brazil | Brazil | Brazil |
Participation | [14],[15],[16] | 50.00% | 50.00% | 50.00% |
Significant Influence of Banco Santander | Norchem Holding e Negócios S.A. | ||||
Jointly Controlled | ||||
Name of joint venture | [1] | Norchem Holding e Negócios S.A. | Norchem Holding e Negócios S.A. | Norchem Holding e Negócios S.A. |
Activity | [1] | Other Activities | Other Activities | Other Activities |
Country | [1] | Brazil | Brazil | Brazil |
Participation | [1] | 21.75% | 21.75% | 21.75% |
[1] | Companies with a delay of one month for the equity calculation. To register the equity income it was used on 12/31/2018 the position of 11/30/2018. | |||
[2] | Although the participations was less than 20%, the Bank exercises control over the entity together with other major stockholders' through a stockholders' agreement where no business decision can be taken by a single shareholder. | |||
[3] | At the ESM held on April 29, 2016 was approved the reform in the distribution structure of the capital of Cibrasec through the creation of preferred shares issued by the Company with voting rights and the share conversion of the common shares of Company into preferred shares, this reform was ratified at the ESM held on May 30, 2016. Banco Santander became part of their ordinary shares held in the capital of Cibrasec, the corresponding amount to 5,000 (five thousand) common shares issued by Cibrasec 50 (fifty) preferred shares in the proportion of 100 (one hundred) common shares for each one (1) preferred share, and still held 4,000 (four thousand) common shares in the capital of Cibrasec. Each preferred share entitles the holder the right to 100 (one hundred) times the right to dividends of the common shares, so that the economic rights were maintained, however, the conversion resulted in reduction in the percentage shareholding in Cibrasec. | |||
[4] | The Bank has a participation of less than 20%, and there is no control block in the company, and business decisions are taken jointly by the stockholders. | |||
[5] | According to its Bylaws, EBP was formed in order to carry out projects to contribute for the brazilian economic and social development for the period of 10 years. After the conclusion of the timetable set EPB closes its activities this year of 2018. The dissolution of its rights and liquidation were aproved in the EGM held on january 29, 2018. | |||
[6] | Although participation exceeds 50%, in accordance with the shareholders' agreement, the control is shared by Santander Corretora de Seguros (Current corporate name of Santander Participacoes S.A.), and Carsales.com. Investments PTY LTD (Carsales), shareholder based in Australia. | |||
[7] | At the EGM held in October 5, 2017, it was approved the share capital increase of the Gestora de Credito in the amount of R$285,205, that way its share capital increased from R$65,823 to R$351,028, through the issuance of 29,013,700 new shares, being 14,506,850 as ordinary shares, 5,802,740 preferred shares Class A, 5,802,740 preferred shares Class B, and 2,901,370 preferred shares Class C, without par value, at the issuance price of R$ 9,83 per share. It was also approved by unanimous decision the payment timetable of the new shares issuance made by the Management of Gestora de Credito. That way, the share capital increase was fully subscribed at the same day by the shareholders in the proportion of 20% of each interest which were partially paid. | |||
[8] | Company incorporated in April 2017 and is in the pre-operational phase. Pursuant to the shareholders' agreement, control is shared between shareholders who hold 20% of their capital stock each. At the Extraordinary General Meeting held on July 6, 2017, the capital increase of Gestora de Credito was approved in the total amount of R$65,822, so that the capital stock increased from R$1 to R$65,823, through the issue of 6,582,200 (six million, five hundred and eighty-two thousand and two hundred) new shares, of which 3,291,100 (three million, two hundred and ninety-one thousand and one hundred), 1,316,440 (one million, three hundred and sixteen thousand, four hundred and forty) preferred shares Class A and 1,316,440 (one million, three hundred and sixteen thousand, four hundred and forty) preferred shares Class B and 658,220 (six hundred and fifty eight thousand, two hundred and twenty) class C preferred shares, with no par value, at the issue price of R$10.00, corresponding to the equity value of the shares. The shares issued in the capital increase were fully subscribed on the same date by the shareholders in the proportion of 20% of their capital stock each. | |||
[9] | Participation resulting from the credit recovery from the Banco Comercial and Investimentos Sudameris S.A. incorporated in 2009 by Banco ABN AMRO Real S.A., which in the same year was incorporated into the Banco Santander (Brasil) S.A., one of the Company partner. The partners are conducting the procedures for extinction of the company, whose depends on the sale of a property. Once it has been sold, the liquidation of the company and each partner will receive its share of the equity. | |||
[10] | Company incorporated on December 13, 2018, upon transformation of BHJV Assessoria e Consultoria em Gestao Empresarial Ltda. Aymore CFI, a wholly-owned subsidiary of Banco Santander, holds the company's operational control. (Note 3.i). | |||
[11] | Insurance company incorporated on October 9, 2018, through transformation of the corporate vehicle L.G.J.S.P.E. Empreendimentos e Participacoes S.A., submitted to Susep to obtain authorization to operate. In accordance with the shareholders' agreement, the control is shared by Sancap and HDI Seguros S.A., (Note 3.g). | |||
[12] | At the ESM realized in September 26, 2016, was approved the reduction of the capital of Webmotors S.A. without cancellation of shares in the amount of R$109,800 to be considered excessive to maintain its activities, and the capital of R$194,580 to R$84,780. | |||
[13] | On December 30, 2016, at the EGM of Webmotors S.A., the merger and the Private Instrument of Protocol and Justification of Incorporation of Virtual Motors by Webmotors S.A. were approved, so that Webmotors S.A. received, for its accounting value, based on the balance sheet drawn up on November 30, 2016, all of the assets, rights and obligations of Virtual Motors, with the extinction of Virtual Motors that will be succeeded by Webmotors S.A. in all its rights and obligations. | |||
[14] | In 2017 refers to the incorporation of Gestora de Inteligencia de Credito - partnership between Banco Santander and other banks from brazilian market (according to note 3.d) and in 2016 refers to the acquisition agreement of part of the financial operations from the Group PSA in Brazil and the consequent creation of a Joint Venture. | |||
[15] | In December 2017, according to the contractual change, the PSA Corretora de Seguros shareholders decided to increase its share capital in R$401, that way the share capital increased from R$ 500 to R$901, through the issuance of 400,532 new shares, which each new share has the value of R$1. The new shares issued were subscribed and paid at the same date, in local currency, according to the proportion of each shareholder equivalent to 50% to the company's share capital, that is, 200.266 shares. | |||
[16] | Pursuant to the shareholders' agreement, the control is shared by Santander Corretora de Seguros (current corporate name of Santander Participacoes SA) and PSA Services LTD. |
Investments in associates and_4
Investments in associates and joint ventures (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Investments in subsidiaries, joint ventures and associates [abstract] | |||
Jointly Controlled by Banco Santander | R$ 613366 | R$ 495264 | R$ 578761 |
Banco RCI Brasil S.A. | 458,292 | 427,801 | 538,756 |
Norchem Participações e Consultoria S.A. | 26,105 | 25,550 | 26,302 |
Cibrasec - Companhia Brasileira de Securitização | 7,298 | 7,438 | 7,435 |
Estruturadora Brasileira de Projetos S.A. - EBP | 3,690 | 4,707 | 6,268 |
Gestora de Inteligência de Crédito | 59,098 | 29,513 | 0 |
Campo Grande Empreendimentos | 255 | 255 | 0 |
Banco Hyundai Capital Brasil S.A. (former named BHJV Assessoria e Consultoria Empresarial Ltda.) | 51,073 | 0 | 0 |
Santander Auto S.A. | 7,555 | 0 | 0 |
Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações S.A.) | 419,016 | 350,440 | 390,336 |
Webmotors S.A. | 273,721 | 197,930 | 246,965 |
Tecnologia Bancária S.A. - TECBAN | 144,090 | 151,019 | 142,713 |
PSA Corretora de Seguros e Serviços Ltda. | 1,205 | 1,491 | 658 |
Significant Influence of Banco Santander | 20,933 | 20,860 | 20,980 |
Norchem Holding e Negócios S.A. | 20,933 | 20,860 | 20,980 |
Total | R$ 1053315 | R$ 866564 | R$ 990077 |
Investments in associates and_5
Investments in associates and joint ventures (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments In Associates And Joint Ventures Results Of Investments [Abstract] | |||
Jointly Controlled by Banco Santander | R$ 41212 | R$ 39904 | R$ 16748 |
Banco RCI Brasil S.A. | 46,244 | 44,384 | 14,175 |
Norchem Participações e Consultoria S.A. | 1,120 | 1,333 | 2,637 |
Cibrasec - Companhia Brasileira de Securitização | 193 | 389 | 366 |
Estruturadora Brasileira de Projetos S.A. - EBP | (1,017) | (1,560) | (430) |
Gestora de Inteligência de Crédito | (6,466) | (4,642) | 0 |
Banco Hyundai Capital Brasil S.A. (former named BHJV Assessoria e Consultoria Empresarial Ltda.) | 1,083 | 0 | 0 |
Santander Auto S.A. | 55 | 0 | 0 |
Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações SA) | 24,161 | 30,430 | 29,538 |
Webmotors S.A. | 30,626 | 21,290 | 23,019 |
Tecnologia Bancária S.A. - TECBAN | (6,929) | 8,307 | 5,971 |
PSA Corretora de Seguros e Serviços Ltda. | 464 | 833 | 548 |
Jointly Controlled by Getnet S.A. | 0 | 0 | (225) |
iZettle do Brasil Meios de Pagamento S.A. | 0 | 0 | (225) |
Significant Influence of Banco Santander | 585 | 1,217 | 1,476 |
Norchem Holding e Negócios S.A. | 585 | 1,217 | 1,476 |
Total | R$ 65958 | R$ 71551 | R$ 47537 |
Investments in associates and_6
Investments in associates and joint ventures (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total Assets [Abstract] | |||
Jointly Controlled by Banco Santander | R$ 10500055 | R$ 9432738 | R$ 8831611 |
Banco RCI Brasil S.A. | 9,849,508 | 9,057,261 | 8,603,844 |
Norchem Participações e Consultoria S.A. | 79,633 | 78,674 | 78,833 |
Cibrasec - Companhia Brasileira de Securitização | 80,300 | 86,378 | 91,083 |
Estruturadora Brasileira de Projetos S.A. - EBP | 33,389 | 42,627 | 57,851 |
Gestora de Inteligência de Crédito | 338,382 | 167,798 | |
Banco Hyundai Capital Brasil S.A. (former named BHJV Assessoria e Consultoria Empresarial Ltda.) | 103,703 | ||
Santander Auto S.A. | 15,140 | ||
Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações SA) | 2,463,262 | 1,967,989 | 1,459,826 |
Webmotors S.A. | 221,313 | 490,458 | 145,499 |
Tecnologia Bancária S.A. - TECBAN | 2,238,156 | 1,472,774 | 1,310,945 |
PSA Corretora de Seguros e Serviços Ltda. | 3,793 | 4,757 | 3,382 |
Significant Influence of Banco Santander | 123,959 | 122,176 | 127,598 |
Norchem Holding e Negócios S.A. | 123,959 | 122,176 | 127,598 |
Total | 13,087,276 | 11,522,903 | 10,419,035 |
Total liabilities | |||
Jointly Controlled by Banco Santander | 8,755,688 | 8,043,604 | 7,318,656 |
Banco RCI Brasil S.A. | 8,679,715 | 7,985,647 | 7,276,320 |
Norchem Participações e Consultoria S.A. | 27,423 | 27,574 | 26,228 |
Cibrasec - Companhia Brasileira de Securitização | 3,893 | 9,884 | 14,659 |
Estruturadora Brasileira de Projetos S.A. - EBP | 176 | 264 | 1,449 |
Gestora de Inteligência de Crédito | 42,894 | 20,235 | |
Banco Hyundai Capital Brasil S.A. (former named BHJV Assessoria e Consultoria Empresarial Ltda.) | 1,557 | ||
Santander Auto S.A. | 30 | ||
Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações SA) | 1,573,082 | 1,077,782 | 943,028 |
Webmotors S.A. | 60,905 | 50,413 | 35,231 |
Tecnologia Bancária S.A. - TECBAN | 1,510,794 | 1,025,593 | 905,731 |
PSA Corretora de Seguros e Serviços Ltda. | 1,383 | 1,776 | 2,066 |
Significant Influence of Banco Santander | 27,714 | 26,267 | 31,136 |
Norchem Holding e Negócios S.A. | 27,714 | 26,267 | 31,136 |
Total | 10,356,484 | 9,147,653 | 8,292,820 |
Total Income | |||
Jointly Controlled by Banco Santander | 80,954 | 43,866 | 89,544 |
Banco RCI Brasil S.A. | 115,928 | 74,452 | 79,223 |
Norchem Participações e Consultoria S.A. | 2,240 | 2,665 | 5,274 |
Cibrasec - Companhia Brasileira de Securitização | 1,989 | 4,000 | 7,011 |
Estruturadora Brasileira de Projetos S.A. - EBP | (9,151) | (14,040) | (1,964) |
Gestora de Inteligência de Crédito | (32,328) | (23,211) | |
Banco Hyundai Capital Brasil S.A. (former named BHJV Assessoria e Consultoria Empresarial Ltda.) | 2,166 | ||
Santander Auto S.A. | 110 | ||
Jointly Controlled by Santander Corretora de Seguros (current corporate name of Santander Participações SA) | 9,703 | 74,861 | 58,595 |
Webmotors S.A. | 43,751 | 31,264 | 29,934 |
Tecnologia Bancária S.A. - TECBAN | (34,976) | 41,932 | 27,568 |
PSA Corretora de Seguros e Serviços Ltda. | 928 | 1,665 | 1,093 |
Significant Influence of Banco Santander | 2,690 | 5,597 | 6,792 |
Norchem Holding e Negócios S.A. | 2,690 | 5,597 | 6,792 |
Total | R$ 93347 | R$ 124324 | R$ 154931 |
Investments in associates and_7
Investments in associates and joint ventures (Details 5) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes Jointly Controlled By Banco Santander [Abstract] | ||||
Balance at beginning of year | R$ 845704 | R$ 969097 | R$ 1041239 | |
Additions / disposals (net) due to change in the scope of consolidation | 0 | 0 | (2,926) | |
Additions /disposals | [1],[2] | 119,557 | 34,154 | 3,105 |
Capital reduction | [3] | 36,051 | 0 | (76,860) |
Share of results of entities accounted for using the equity method | 65,373 | 70,334 | 46,061 | |
Dividends proposed/received | (35,351) | (200,620) | (39,424) | |
Others | 1,048 | (27,261) | (2,098) | |
Balance at end of year | 1,032,382 | 845,704 | 969,097 | |
Significant Influence of Banco Santander | ||||
Balance at beginning of year | 20,860 | 20,980 | 19,504 | |
Share of results of entities accounted for using the equity method | 585 | 1,217 | 1,476 | |
Dividends proposed/received | (512) | (1,337) | 0 | |
Balance at end of year | R$ 20933 | R$ 20860 | R$ 20980 | |
[1] | In 2017 refers to the incorporation of Gestora de Inteligencia de Credito - partnership between Banco Santander and other banks from brazilian market (according to note 3.d) and in 2016 refers to the acquisition agreement of part of the financial operations from the Group PSA in Brazil and the consequent creation of a Joint Venture. | |||
[2] | In June 2016 the interest held in iZetlle do Brasil S.A was sold. | |||
[3] | At the ESM realized in September 26, 2016, was approved the reduction of the capital of Webmotors S.A. without cancellation of shares in the amount of R$109,800 to be considered excessive to maintain its activities, and the capital of R$194,580 to R$84,780. |
Investments in associates and_8
Investments in associates and joint ventures (Details 6) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Banco RCI Brasil | |||
Other information | |||
Current assets | R$ 9849508 | R$ 9057261 | R$ 8603844 |
Current liabilities | 8,679,715 | 7,985,647 | 7,276,320 |
Cash and cash equivalents | 37,115 | 47,782 | 23,612 |
Depreciation and amortization | (977) | (1,600) | (911) |
Revenue | 1,316,687 | 1,315,695 | 1,575,550 |
Interest income | 1,290,703 | 1,294,119 | 1,368,643 |
Interest expense | (575,944) | (626,654) | (903,061) |
Tax Income / (expense) | (147,266) | (122,544) | (3,326) |
Current financial liabilities (excluding trade and other payables and provisions) | 3,130,908 | 3,897,010 | 3,629,575 |
Non-current financial liabilities (excluding trade and other payables and provisions) | 4,813,909 | 4,058,986 | 3,646,745 |
Webmotors | |||
Other information | |||
Current assets | 221,313 | 490,458 | 145,499 |
Current liabilities | 60,905 | 50,413 | 35,231 |
Cash and cash equivalents | 1,034 | 1,989 | 1,663 |
Depreciation and amortization | (7,423) | 16,353 | (12,295) |
Revenue | 167,881 | 127,064 | 135,242 |
Interest income | 4,134 | 7,178 | 28,047 |
Interest expense | 0 | 0 | 0 |
Tax Income / (expense) | (16,013) | (12,568) | (13,370) |
Current financial liabilities (excluding trade and other payables and provisions) | 49,709 | 33,320 | 31,707 |
Non-current financial liabilities (excluding trade and other payables and provisions) | R$ 5458 | R$ 3247 | R$ 1736 |
Tangible assets (Details 1)
Tangible assets (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tangible assets | ||||
Balance at | R$ 6612563 | R$ 6533471 | R$ 6670021 | |
Cost | ||||
Tangible assets | ||||
Balance at | 16,640,177 | 14,771,430 | 13,940,848 | R$ 13242856 |
Additions | 1,394,299 | 1,106,406 | 873,140 | |
Additions resulting mergers | 5,982 | |||
Write-off | (380,604) | (263,191) | (185,627) | |
Transfers | 714,894 | (12,633) | 4,195 | |
Additions by Company Acquisition | 1,831 | |||
Change in scope of consolidation | 138,327 | 302 | ||
Accumulated depreciation | ||||
Tangible assets | ||||
Balance at | (9,986,814) | (8,252,994) | (7,275,543) | (6,227,157) |
Additions | (1,216,704) | (1,190,967) | (1,154,588) | |
Additions resulting mergers | (2,828) | |||
Write-off | 258,595 | 213,803 | 148,429 | |
Transfers | (760,351) | (287) | (39,297) | |
Additions by Company Acquisition | (1,174) | |||
Change in scope of consolidation | (14,186) | (102) | ||
Losses from non-recovery (impairment) | ||||
Tangible assets | ||||
Balance at | (40,800) | 15,035 | 4,716 | (9,785) |
Impacts on results | (60,163) | 10,831 | (9,087) | |
Write-off | 23,588 | |||
Transfers | 4,328 | (512) | ||
Land and buildings | ||||
Tangible assets | ||||
Balance at | 2,027,923 | 2,040,403 | 2,127,540 | |
Land and buildings | Cost | ||||
Tangible assets | ||||
Balance at | 2,779,038 | 2,649,312 | 2,711,193 | 2,724,859 |
Additions | 2,534 | 0 | 3,024 | |
Additions resulting mergers | 0 | |||
Write-off | (18,230) | (52,102) | (29,174) | |
Transfers | 45,663 | (9,779) | 12,484 | |
Additions by Company Acquisition | 0 | |||
Change in scope of consolidation | 99,759 | 0 | ||
Land and buildings | Accumulated depreciation | ||||
Tangible assets | ||||
Balance at | (760,844) | (629,250) | (594,210) | (531,546) |
Additions | (82,714) | (81,910) | (82,963) | |
Additions resulting mergers | 0 | |||
Write-off | 8,816 | 37,136 | 13,999 | |
Transfers | (52,094) | 9,734 | 6,300 | |
Additions by Company Acquisition | 0 | |||
Change in scope of consolidation | (5,602) | 0 | ||
Land and buildings | Losses from non-recovery (impairment) | ||||
Tangible assets | ||||
Balance at | 9,729 | 20,341 | 10,557 | (9,785) |
Impacts on results | (10,607) | 9,784 | (3,246) | |
Write-off | 23,588 | |||
Transfers | (5) | 0 | ||
IT equipment and fixtures | ||||
Tangible assets | ||||
Balance at | 913,613 | 996,519 | 857,916 | |
IT equipment and fixtures | Cost | ||||
Tangible assets | ||||
Balance at | 4,628,325 | 4,288,216 | 3,367,015 | 3,150,747 |
Additions | 449,489 | 382,571 | 154,852 | |
Additions resulting mergers | 2,021 | |||
Write-off | (162,497) | (180,036) | (15,011) | |
Transfers | 32,232 | 718,666 | 74,361 | |
Additions by Company Acquisition | 1,368 | |||
Change in scope of consolidation | 19,517 | 45 | ||
IT equipment and fixtures | Accumulated depreciation | ||||
Tangible assets | ||||
Balance at | (3,714,712) | (3,291,697) | (2,509,099) | (2,092,880) |
Additions | (484,629) | (499,542) | (387,855) | |
Additions resulting mergers | (1,594) | |||
Write-off | 140,332 | 154,471 | 13,092 | |
Transfers | (76,292) | (437,527) | (39,836) | |
Additions by Company Acquisition | (978) | |||
Change in scope of consolidation | (1,448) | (26) | ||
IT equipment and fixtures | Losses from non-recovery (impairment) | ||||
Tangible assets | ||||
Balance at | 0 | 0 | 0 | 0 |
Impacts on results | 0 | 0 | 0 | |
Write-off | 0 | |||
Transfers | 0 | 0 | ||
Furniture and vehicles | ||||
Tangible assets | ||||
Balance at | 3,669,344 | 3,492,790 | 3,680,806 | |
Furniture and vehicles | Cost | ||||
Tangible assets | ||||
Balance at | 9,231,131 | 7,830,143 | 7,858,881 | 7,363,491 |
Additions | 941,895 | 723,835 | 715,264 | |
Additions resulting mergers | 3,961 | |||
Write-off | (199,877) | (31,053) | (141,442) | |
Transfers | 640,758 | (721,520) | (82,650) | |
Additions by Company Acquisition | 463 | |||
Change in scope of consolidation | 17,749 | 257 | ||
Furniture and vehicles | Accumulated depreciation | ||||
Tangible assets | ||||
Balance at | (5,511,258) | (4,332,047) | (4,172,234) | (3,602,731) |
Additions | (649,361) | (609,515) | (683,770) | |
Additions resulting mergers | (1,234) | |||
Write-off | 109,447 | 22,196 | 121,338 | |
Transfers | (631,965) | 427,506 | (5,761) | |
Additions by Company Acquisition | (196) | |||
Change in scope of consolidation | (7,136) | (76) | ||
Furniture and vehicles | Losses from non-recovery (impairment) | ||||
Tangible assets | ||||
Balance at | (50,529) | (5,306) | (5,841) | 0 |
Impacts on results | (49,556) | 1,047 | (5,841) | |
Write-off | 0 | |||
Transfers | 4,333 | (512) | ||
Others | ||||
Tangible assets | ||||
Balance at | 1,683 | 3,759 | 3,759 | |
Others | Cost | ||||
Tangible assets | ||||
Balance at | 1,683 | 3,759 | 3,759 | 3,759 |
Additions | 381 | 0 | 0 | |
Additions resulting mergers | 0 | |||
Write-off | 0 | 0 | 0 | |
Transfers | (3,759) | 0 | 0 | |
Additions by Company Acquisition | 0 | |||
Change in scope of consolidation | 1,302 | 0 | ||
Others | Accumulated depreciation | ||||
Tangible assets | ||||
Balance at | 0 | 0 | 0 | 0 |
Additions | 0 | 0 | 0 | |
Additions resulting mergers | 0 | |||
Write-off | 0 | 0 | 0 | |
Transfers | 0 | 0 | 0 | |
Additions by Company Acquisition | 0 | |||
Change in scope of consolidation | 0 | 0 | ||
Others | Losses from non-recovery (impairment) | ||||
Tangible assets | ||||
Balance at | 0 | 0 | 0 | R$ 0 |
Impacts on results | 0 | 0 | 0 | |
Write-off | R$ 0 | |||
Transfers | R$ 0 | R$ 0 |
Tangible assets (Details Text)
Tangible assets (Details Text) - BRL (R$) R$ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Tangible Assets Purchase Commitments [Abstract] | |||
Tangible assets purchase commitments | R$ 3.2 | R$ 75.0 | R$ 9.1 |
Intangible assets - Goodwill (D
Intangible assets - Goodwill (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Intangible assets and goodwill [abstract] | |||
Banco ABN Amro Real S.A. (Banco Real) | R$ 27217565 | R$ 27217565 | R$ 27217565 |
Olé Consignado (Current Company name of Banco Bonsucesso Consignado) | 62,800 | 62,800 | 62,800 |
Super Pagamentos e Administração de Meios Eletrônicos Ltda. (Super) | 13,050 | 13,050 | 13,050 |
Banco PSA Finance Brasil S.A. | 1,557 | 1,557 | 0 |
Getnet Adquirência e Serviços para Meios de Pagamento S.A. (Santander Getnet) | 1,039,304 | 1,039,304 | 1,039,304 |
BW Guirapá I S.A. | 0 | 0 | 22,320 |
Ipanema Empreendimentos e Participações Ltda. | 27,630 | 28,120 | 0 |
Goodwill - Santander Brasil Tecnologia S.A. | 16,382 | 0 | 0 |
Others | 0 | 1,860 | 0 |
Total | R$ 28378288 | R$ 28364256 | R$ 28355039 |
Intangible assets - Goodwill _2
Intangible assets - Goodwill (Details 2) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Main Assumptions [Abstract] | ||||
Basis of determining recoverable amounts | Value in use: cash flows | Value in use: cash flows | Value in use: cash flows | |
Period of the projections of cash flows | [1] | 5 years | 5 years | 5 years |
Growth rate perpetual | 5.10% | 8.30% | 8.00% | |
Discount rate | [2] | 13.60% | 14.60% | 15.20% |
[1] | The projections of cash flow are prepared using Management's growth plans and internal budget, based on historical data, market expectations and conditions such as industry growth, interest rate and inflation. | |||
[2] | The discount rate is calculated based on the capital asset pricing model (CAPM). The discount rate before tax is 19.33% (2017 - 20.42% and 2016 - 20.23%). |
Intangible assets - Goodwill _3
Intangible assets - Goodwill (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Changes in goodwill [abstract] | |||
Balance at beginning of the year | R$ 28364256 | R$ 28355039 | R$ 28332719 |
Additions (loss): | |||
BW Guirapá (Note 3.c) | 0 | (22,320) | 22,320 |
Banco PSA Finance Brasil S.A. | 0 | 1,557 | 0 |
Ipanema Empreendimentos e Participações Ltda. | (490) | 28,120 | 0 |
Santander Brasil Tecnologia S.A. | 16,382 | 0 | 0 |
Others | (1,860) | 1,860 | 0 |
Balance at end of the year | R$ 28378288 | R$ 28364256 | R$ 28355039 |
Intangible assets - Other int_3
Intangible assets - Other intangible assets (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Intangible assets - Other intangible assets | |||||||
Balance at | R$ 1640700 | R$ 1837787 | R$ 1881803 | ||||
Losses from non-recovery (Impairment) - IT Member | |||||||
Intangible assets - Other intangible assets | |||||||
Balance at | (336,001) | (1,298,671) | (993,002) | R$ 1003500 | |||
Impact on net profit | (300,865) | [1] | (306,110) | (5,838) | [1] | ||
Write-off | 1,263,535 | 441 | 16,336 | ||||
Transfers | 0 | ||||||
Accumulated amortization Member | |||||||
Intangible assets - Other intangible assets | |||||||
Balance at | (5,344,643) | (3,845,197) | (3,398,137) | (3,115,773) | |||
Additions | (523,255) | (471,280) | (328,051) | ||||
Additions resulting mergers | (583) | (249) | |||||
Write-off | 25,242 | 6,354 | 10,343 | ||||
Additions / disposals (net) due to change in the scope of consolidation | (15) | (1) | |||||
Transfers | (1,000,835) | 17,866 | 35,594 | ||||
Cost Member | |||||||
Intangible assets - Other intangible assets | |||||||
Balance at | 7,321,344 | 6,981,655 | 6,272,942 | 5,600,216 | |||
Additions | 804,919 | 836,483 | 670,885 | ||||
Additions resulting mergers | 590 | (132,403) | 339 | ||||
Write-off | (477,474) | (10,652) | |||||
Additions / disposals (net) due to change in the scope of consolidation | 87 | 4 | |||||
Transfers | 11,567 | 4,633 | 12,150 | ||||
Other assets | |||||||
Intangible assets - Other intangible assets | |||||||
Balance at | 83,830 | 102,921 | 113,552 | ||||
Other assets | Losses from non-recovery (Impairment) - IT Member | |||||||
Intangible assets - Other intangible assets | |||||||
Balance at | (15,291) | (15,291) | (15,291) | (8,698) | |||
Impact on net profit | [1] | (6,736) | |||||
Write-off | 143 | ||||||
Transfers | 0 | ||||||
Other assets | Accumulated amortization Member | |||||||
Intangible assets - Other intangible assets | |||||||
Balance at | (311,950) | (292,762) | (277,155) | (266,779) | |||
Additions | (19,246) | (21,571) | (24,005) | ||||
Write-off | 5,500 | 10,202 | |||||
Transfers | 58 | 464 | 3,427 | ||||
Other assets | Cost Member | |||||||
Intangible assets - Other intangible assets | |||||||
Balance at | 411,071 | 410,974 | 405,998 | 397,716 | |||
Additions | 137 | 12,072 | 18,395 | ||||
Additions resulting mergers | 89 | ||||||
Write-off | (40) | (7,096) | (10,202) | ||||
IT developments | |||||||
Intangible assets - Other intangible assets | |||||||
Balance at | 1,556,870 | 1,734,866 | 1,768,251 | ||||
IT developments | Losses from non-recovery (Impairment) - IT Member | |||||||
Intangible assets - Other intangible assets | |||||||
Balance at | (320,710) | (1,283,380) | (977,711) | (994,802) | |||
Impact on net profit | (300,865) | [1] | (306,110) | 898 | [1] | ||
Write-off | 1,263,535 | 441 | 16,193 | ||||
IT developments | Accumulated amortization Member | |||||||
Intangible assets - Other intangible assets | |||||||
Balance at | (5,032,693) | (3,552,435) | (3,120,982) | (2,848,994) | |||
Additions | (504,009) | (449,709) | (304,046) | ||||
Additions resulting mergers | (583) | (249) | |||||
Write-off | 25,242 | 854 | 141 | ||||
Additions / disposals (net) due to change in the scope of consolidation | (15) | (1) | |||||
Transfers | (1,000,893) | 17,402 | 32,167 | ||||
IT developments | Cost Member | |||||||
Intangible assets - Other intangible assets | |||||||
Balance at | 6,910,273 | 6,570,681 | 5,866,944 | R$ 5202500 | |||
Additions | 804,782 | 824,411 | 652,490 | ||||
Additions resulting mergers | 590 | 250 | |||||
Write-off | (477,434) | (125,307) | (450) | ||||
Additions / disposals (net) due to change in the scope of consolidation | 87 | 4 | |||||
Transfers | R$ 11567 | R$ 4633 | R$ 12150 | ||||
[1] | In 2018, it refers to impairment loss of assets in the acquisition and development of software. The loss in the acquisition and development of software was recorded due to obsolescence function and disruption of these systems. |
Other assets (Details 1)
Other assets (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other assets [Abstract] | ||||
Customer relationships | R$ 1674187 | R$ 1679305 | R$ 1197278 | |
Prepayments and accrued income | 685,755 | 784,456 | 690,814 | |
Contractual guarantees of former controlling stockholders (Note 23.c.5) | 605,638 | 707,130 | 814,925 | |
Actuarial asset (Note 22) | 273,281 | 198,189 | 153,662 | |
Other receivables (1) | [1] | 1,561,606 | 1,209,190 | 2,247,333 |
Total | R$ 4800467 | R$ 4578270 | R$ 5104012 | |
[1] | Corresponds mainly to receivables from third parties. |
Deposits from the Brazilian C_3
Deposits from the Brazilian Central Bank and Deposits from credit institutions (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Classification [Abstract] | ||||
Financial liabilities at amortized cost | R$ 99022806 | R$ 79374685 | R$ 78634072 | |
Total | 99,022,806 | 79,374,685 | 78,634,072 | |
Currency: | ||||
Reais | 74,159,613 | 56,562,950 | 51,339,830 | |
Euro | 105,119 | 407,814 | 576,994 | |
US dollar | 24,758,074 | 22,156,054 | 26,546,404 | |
Other currencies | 0 | 247,867 | 170,844 | |
Type: | ||||
Deposits on demand | [1] | 709,605 | 306,081 | 314,112 |
Time deposits | [2] | 47,227,456 | 52,739,163 | 49,548,858 |
Repurchase agreements | 51,085,745 | 26,329,441 | 28,771,102 | |
Of which: | ||||
Backed operations with Private Securities (3) | [3] | 6,977,766 | 0 | 446,429 |
Backed operations with Government Securities | R$ 44107979 | R$ 26329441 | R$ 28324673 | |
[1] | Non-interest bearing accounts. | |||
[2] | It includes the operation with credit institution arising from export and import financing lines, BNDES and Finame on-lending and abroad and other credit lines abroad. | |||
[3] | Refers primarily to repurchase agreements backed by own-issued debentures. |
Client deposits (Details 1)
Client deposits (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Classification [Abstract] | ||||
Financial liabilities at amortized cost | R$ 304197800 | R$ 276042141 | R$ 247445177 | |
Total | 304,197,800 | 276,042,141 | 247,445,177 | |
Type: Demand deposits | ||||
Current accounts | [1] | 18,853,519 | 17,559,985 | 15,868,201 |
Savings accounts | 46,068,346 | 40,572,369 | 36,051,476 | |
Time deposits | 190,982,541 | 146,817,650 | 94,478,875 | |
Repurchase agreements | 48,293,394 | 71,092,137 | 101,046,625 | |
Of which: | ||||
Backed operations with Private Securities | [2] | 6,977,766 | 33,902,890 | 59,460,210 |
Backed operations with Government Securities | 41,315,628 | 37,189,247 | 41,586,415 | |
Total | R$ 304197800 | R$ 276042141 | R$ 247445177 | |
[1] | Non-interest bearing accounts. | |||
[2] | Refers primarily to repurchase agreements backed by own-issued debentures. |
Marketable debt securities (Det
Marketable debt securities (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Classification: | ||||
Financial liabilities at amortized cost | R$ 74626232 | R$ 70247012 | R$ 99842955 | |
Total | 74,626,232 | 70,247,012 | 99,842,955 | |
Type: | ||||
Real estate credit notes - LCI | [1] | 27,159,982 | 27,713,873 | 23,983,429 |
Eurobonds | 4,516,647 | 1,992,828 | 7,721,646 | |
Treasury Bills | [2] | 30,721,206 | 31,686,259 | 61,157,037 |
Agribusiness credit notes - LCA | 11,925,018 | 8,854,052 | 6,980,843 | |
Guaranteed Real Estate Credit Notes | [3] | 303,379 | 0 | 0 |
Total | R$ 74626232 | R$ 70247012 | R$ 99842955 | |
Domestic | ||||
Indexers: | ||||
Treasury Bills | 97% to 106% of CDI | |||
Treasury Bills | 100% of IGPM | |||
Treasury Bills | 100% of IPCA | |||
Treasury Bills | Pre fixed: 6.04% to 17.46% | |||
Treasury Bills | 105,5% of SELIC | |||
Real estate credit notes - LCI | 73% to 9.,5% of CDI | |||
Real estate credit notes - LCI | Pre fixed: 7,3% of 14% | |||
Real estate credit notes - LCI | 100% of IPCA | |||
Real estate credit notes - LCI | 100% of TR | |||
Agribusiness credit notes - LCA | 84% to 96% of CDI | |||
Guaranteed Real Estate Credit Notes - LIG | 95% to 98% of CDI | |||
Abroad | ||||
Indexers: | ||||
Eurobonds | 0.9% to 9% | |||
[1] | Real Estate Credit Notes are fixed income securities pegged by mortgages and mortgage-backed securities or liens on property. On December 31, 2018, have maturities between 2019 and 2026 (2017 - there are maturities between 2018 to 2026 and 2016 - there are maturities between 2017 to 2026). | |||
[2] | The main features of the Treasury Bills are the minimum period of two years, minimum notional of R$300 and permission for early redemption of only 5% of the issued amount. On December 31, 2018, have a maturity between 2019 to 2025 (2017 - have a maturity between 2018 to 2025 and 2016 - there are maturities between 2017 to 2025). | |||
[3] | Guaranteed Real Estate Letters are real estate investment securities guaranteed by the issuer and by a pool of real estate credits separated from the other assets of the issuer. As of December 31, 2018 maturity until 2021. |
Marketable debt securities (D_2
Marketable debt securities (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Marketable Debt Securities Currency [Abstract] | |||
Real | R$ 70109585 | R$ 68335103 | R$ 92132195 |
US dollar | 4,516,647 | 1,911,909 | 7,645,542 |
Euro | 0 | 0 | 65,218 |
Total | R$ 74626232 | R$ 70247012 | R$ 99842955 |
Marketable debt securities (D_3
Marketable debt securities (Details 3) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Marketable Debt Securities Average Interest Currency [Abstract] | |||
Real | 5.50% | 5.50% | 11.70% |
US dollar | 5.90% | 6.80% | 3.70% |
Total | 5.60% | 5.70% | 11.30% |
Marketable debt securities (D_4
Marketable debt securities (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes Marketable Debt Instruments [Abstract] | |||
Balance at beginning of the year | R$ 70247012 | R$ 99842955 | R$ 94658300 |
Issuances | 73,765,081 | 59,663,420 | 50,313,469 |
Payments | (78,903,009) | (97,009,957) | (56,164,769) |
Interest (Note 33) | 4,606,949 | 7,901,199 | 12,212,922 |
Exchange differences and Others | 4,910,199 | (150,605) | (1,305,204) |
Additions arising from acquisitions of companies | 0 | 0 | 128,237 |
Balance at end of the year | R$ 74626232 | R$ 70247012 | R$ 99842955 |
Marketable debt securities (D_5
Marketable debt securities (Details 5) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Bonds and other securities | |||
Others | R$ 77695 | R$ 89996 | R$ 194475 |
Total | 4,516,647 | 1,992,828 | 7,721,646 |
Issuance: 2007 | Maturity: 2017 | BRL | Interest rate (p.y): FIDC | |||
Bonds and other securities | |||
Eurobonds | 0 | 0 | 1,930 |
Issuance: 2016 | Maturity: 2017 | USD | Interest rate (p.y): 0.7% to 2.5% | |||
Bonds and other securities | |||
Eurobonds | 0 | 0 | 3,408,932 |
Issuance: 2012 | Maturity: 2017 | USD | Interest rate (p.y): 4.6% | |||
Bonds and other securities | |||
Eurobonds | 0 | 0 | 4,116,309 |
Issuance: 2017 | Maturity: 2018 | USD | Interest rate (p.y): Zero Coupon to 2.4% | |||
Bonds and other securities | |||
Eurobonds | 0 | 1,195,668 | 0 |
Issuance: 2017 | Maturity: 2019 | USD | Interest rate (p.y): Libor 3M + 1.0% | |||
Bonds and other securities | |||
Eurobonds | 194,243 | 165,677 | 0 |
Issuance: 2017 | Maturity: 2024 | USD | Interest rate (p.y): 6.9% to 10.0% | |||
Bonds and other securities | |||
Eurobonds | 639,275 | 541,487 | 0 |
Issuance: 2018 | Maturity: 2019 | USD | Interest rate (p.y): Zero Coupon to 9% | |||
Bonds and other securities | |||
Eurobonds | 855,035 | 0 | 0 |
Issuance: 2018 | Maturity: 2019 | USD | Interest rate (p.y): Libor 3M + 0.95% | |||
Bonds and other securities | |||
Eurobonds | 19,386 | 0 | 0 |
Issuance: 2018 | Maturity: 2019 | USD | Interest rate (p.y): Libor 1M + 1.5% | |||
Bonds and other securities | |||
Eurobonds | 197,055 | 0 | 0 |
Issuance: 2018 | Maturity: 2019 | USD | Interest rate (p.y): 3.50% | |||
Bonds and other securities | |||
Eurobonds | 34,776 | 0 | 0 |
Issuance: 2018 | Maturity: 2019 | USD | Interest rate (p.y): 6.6% to 6.7% | |||
Bonds and other securities | |||
Eurobonds | 1,211,361 | 0 | 0 |
Issuance: 2018 | Maturity: 2019 | USD | Interest rate (p.y): 9.0% | |||
Bonds and other securities | |||
Eurobonds | R$ 1287821 | R$ 0 | R$ 0 |
Subordinated liabilities (Detai
Subordinated liabilities (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Subordinated liabilities | ||||
Total | R$ 9885608 | R$ 519230 | R$ 466246 | |
Issuance: may-08 | Maturity: may-15 to may-18 | Amount (millions): R$283 | Interest rate: CDI | ||||
Subordinated liabilities | ||||
Subordinated liabilities | [1],[2] | 0 | 109,572 | 98,378 |
Issuance: may-08 to jun-08 | Maturity: may-15 to jun-18 | Amount (millions): R$268 | Interest rate: IPCA | ||||
Subordinated liabilities | ||||
Subordinated liabilities | [2],[3] | 0 | 409,658 | 367,868 |
Issuance: January-14 | Maturity: Perpetual | Amount (millions): R$3.000 | Interest rate: 7.375% | ||||
Subordinated liabilities | ||||
Notes | [2],[4] | 4,906,880 | 0 | 0 |
Issuance: January-14 | Maturity: January-24 | Amount (millions): R$3.000 | Interest rate: 6.000% | ||||
Subordinated liabilities | ||||
Notes | [2],[4] | R$ 4978728 | R$ 0 | R$ 0 |
[1] | Between December 2017 and May 2018, indexed by 100% and 112% of the CDI. | |||
[2] | Subordinated time deposits issued by Banco Santander S.A. with yield paid at the end of the term together with the principal. | |||
[3] | Between December 2017 and June 2018, indexed by the IPCA (extended consumer price index) plus interest of 8.3% p.a. to 8.4% p.a. | |||
[4] | On December 18, 2018, the Bank Central of Brazil issued approval for the repurchase of the notes issued on January 29, 2014, this approval led to the reclassification of these instruments from the Debt Instruments Eligible to Compose Capital to Subordinated Debt (Note 20). |
Subordinated liabilities (Det_2
Subordinated liabilities (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Currency Subordinated Liabilities [Abstract] | |||
Real | R$ 9885608 | R$ 519230 | R$ 466246 |
Total | R$ 9885608 | R$ 519230 | R$ 466246 |
Average Interest Rate (%) | |||
Real | 4.90% | 7.50% | 9.60% |
Total | 4.90% | 7.50% | 9.60% |
Subordinated liabilities (Det_3
Subordinated liabilities (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes Subordinated Liabilities [Abstract] | |||
Balance at beginning of year | R$ 519230 | R$ 466246 | R$ 8097304 |
Payments | (544,566) | 0 | (8,362,652) |
Interest (Note 33) | 25,336 | 52,984 | 731,594 |
Transfers (Note 20) | 9,885,608 | 0 | 0 |
Balance at end of year | R$ 9885608 | R$ 519230 | R$ 466246 |
Debt Instruments Eligible to _3
Debt Instruments Eligible to Compose Capital (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instruments Eligible to Compose Capital | ||||
Total | R$ 9779944 | R$ 8436901 | R$ 8311918 | |
Issuance: jan-14 | Maturity: no maturity (perpetual) | Issuance Value: R$3,000 | Interest Rate (p.a.): 7.375% | ||||
Debt Instruments Eligible to Compose Capital | ||||
Tier I | [1],[2],[3] | 0 | 4,187,531 | 4,125,557 |
Issuance: jan-14 | Maturity: jan-24 | Issuance Value: R$3,000 | Interest Rate (p.a.): 6.000% | ||||
Debt Instruments Eligible to Compose Capital | ||||
Tier II | [1],[2],[3] | 0 | 4,249,370 | 4,186,361 |
Issuance: nov-18 | Maturity: no maturity (perpetual) | Issuance Value: US$1,250 | Interest Rate (p.a.): 7.250% | ||||
Debt Instruments Eligible to Compose Capital | ||||
Tier I | [3],[4] | 4,893,668 | 0 | 0 |
Issuance: nov-18 | Maturity: nov-28 | Issuance Value: US$1,250 | Interest Rate (p.a.): 6.125% | ||||
Debt Instruments Eligible to Compose Capital | ||||
Tier II | [3],[4] | R$ 4886276 | R$ 0 | R$ 0 |
[1] | Notes repurchased in 2019; As authorized by Bacen on December 17, 2018, as of the date of their issuance, Level I and II of RC must be excluded. | |||
[2] | On December 18, 2018, the Central Bank of Brazil issued the approval for the repurchase of the notes issued on January 29, 2014, this approval led to the reclassification of these instruments from the Debt Instruments Eligible to Compose Capital to Subordinated Debt (Note 19). | |||
[3] | The debts of January 2014 were made by Banco Santander in Brazil, therefore, as Income Tax at source assumed by the issuer, in the form of a corresponding exchange rate, is 8.676% and 7.059% for the instruments Level I and Level II, respectively. The emissions generated from November 2018 were made through the Cayman Agency and, consequently, there is no incidence of Income Tax at Source. | |||
[4] | Interest paid semiannually, as of May 8, 2019. |
Debt Instruments Eligible to _4
Debt Instruments Eligible to Compose Capital (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes Debt Instruments Eligible To Compose Capital [Abstract] | ||||
Balance at beginning of the year | R$ 8436901 | R$ 8311918 | R$ 9959037 | |
Emission of interest - Tier I | 4,673,875 | |||
Emission of interest - Tier II | 4,673,875 | |||
Interest payment Tier I | [1] | 331,677 | 273,123 | 276,587 |
Interest payment Tier II | [1] | 272,539 | 222,065 | 225,161 |
Exchange differences / Others | 1,960,467 | 252,941 | (1,447,196) | |
Payments of interest - Tier I | (381,008) | (344,867) | (379,039) | |
Payments of interest - Tier II | (302,775) | (278,279) | (322,632) | |
Transfers | (9,885,607) | |||
Balance at end of the year | R$ 9779944 | R$ 8436901 | R$ 8311918 | |
[1] | The remuneration of interest relating to the Debt Instruments Eligible to Compose Capital Tier I and II was recorded against income for the period as 'Interest expense and similar charges' (Note 33). |
Other financial liabilities (De
Other financial liabilities (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other financial liabilities [Abstract] | ||||
Credit card obligations | R$ 39761739 | R$ 32049712 | R$ 25420237 | |
Unsettled financial transactions | [1] | 3,356,871 | 3,905,236 | 3,829,374 |
Dividends and Interest on Capital payable | 4,508,569 | 4,553,914 | 4,346,128 | |
Tax collection accounts - Tax payables | 1,205,746 | 1,077,860 | 1,157,386 | |
Liability associated with the transfer of assets (Note 9.g) | 126,906 | 428,248 | 774,673 | |
Other financial liabilities | [2] | 2,769,005 | 2,245,765 | 1,351,301 |
Total | R$ 51728836 | R$ 44260735 | R$ 36879099 | |
[1] | Includes operations to settle with B3 S.A. (Current Company Name of BM&FBovespa) and payment orders in foreign currency. | |||
[2] | As of December 31, 2018, the financial liability is included in the total amount of R$519 million (2017 - R$484 million and 2016 - R$307 million), related to the purchase option period of the shares held by Banco Bonsucesso. The exercise period is the defined between two periods, the first from February 10, 2019 to February 10, 2021, if the exercise does not occur in the first period, the second period will be from February 10, 2023 to February 10, 2025 and R$1,427 (2017 - R$1,223 million and 2016 - R$950 million), referring to an option with shares issued by Getnet SA, which was authorized by Bacen on February 18, 2019. |
Provisions for pensions and s_3
Provisions for pensions and similar obligations (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Present Value Of The Obligations Post Employment Plans [Abstract] | ||||
To current employees | R$ 716492 | R$ 796243 | R$ 770423 | |
Vested obligations to retired employees | 23,296,715 | 21,205,366 | 19,998,703 | |
Total | 24,013,207 | 22,001,609 | 20,769,126 | |
Less: | ||||
Fair value of plan assets | 22,708,990 | 20,689,637 | 20,116,916 | |
Unrecognized assets | [1] | (1,079,808) | (1,090,682) | (969,161) |
Provisions - Post-employment plans, net | 2,384,025 | 2,402,654 | 1,621,371 | |
Present value of the obligations - Other similar obligations: | ||||
To current employees | 184,606 | 228,107 | 200,009 | |
Vested obligations to retired employees | 4,604,466 | 4,815,654 | 4,046,480 | |
Total | 4,789,072 | 5,043,761 | 4,246,489 | |
Less: | ||||
Fair value of plan assets | 4,157,251 | 3,721,147 | 3,310,895 | |
Unrecognized assets | [1] | (68,527) | 0 | 0 |
Provisions - Other similar obligations, net | 700,348 | 1,322,614 | 935,594 | |
Total provisions for pension plans, net | 3,084,373 | 3,725,268 | 2,556,965 | |
Of which: | ||||
Actuarial provisions | 3,357,654 | 3,923,457 | 2,710,627 | |
Actuarial assets (note 15) | R$ 273281 | R$ 198189 | R$ 153662 | |
[1] | Refers to fully funded surplus plans Banesprev I and III, Sanprev I,II and III and Bandeprev. |
Provisions for pensions and s_4
Provisions for pensions and similar obligations (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Post Employment Plans [Abstract] | |||
Staff costs - Current service costs (note 40) | R$ 3142 | R$ 14605 | R$ 15416 |
Interest and similar income and expenses - Interest and similar income and expenses - Interest cost (net) (notes 32 and 33) | 124,754 | 70,429 | 120,524 |
Interest and similar income and expenses - Interest on unrecognized assets (notes 32 and 33) | 104,160 | 105,832 | 117,981 |
Other movements | 12,432 | 5,323 | 4,355 |
Total | R$ 244488 | R$ 196189 | R$ 258276 |
Provisions for pensions and s_5
Provisions for pensions and similar obligations (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Other Similar Obligations [Abstract] | ||||
Staff costs - Current service costs (note 40) | R$ 5797 | R$ 5476 | R$ 9064 | |
Interest and similar income and expenses - Interest cost (net) (notes 32 and 33) | 76,124 | 99,575 | 38,064 | |
Interest and similar income and expenses - Interest on unrecognized assets (notes 32 and 33) | 15,521 | 0 | 14,608 | |
Other movements | [1] | (816,230) | 0 | 55,943 |
Total | R$ 718788 | R$ 105051 | R$ 117679 | |
[1] | In the year ended December 31, 2018 there was an increase in the cost contribution established for a postemployment benefit plan, which is calculated as a percentage of the total monthly compensation of associates. The increase in the contribution resulted in a decrease in the past service cost, due to changes in the plan. The envisaged changes implied a reduction in the present value of the obligations of the defined benefit plan, which is supported by actuarial valuations. In the Consolidated Statements of Income, this amount was recorded under Provision (Net). |
Provisions for pensions and s_6
Provisions for pensions and similar obligations (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Post Employment Plans [Abstract] | |||
Present value of the obligations at beginning of year | R$ 22001609 | R$ 20769126 | R$ 17525799 |
Current service cost (Note 40) | 3,142 | 14,605 | 15,416 |
Interest cost | 2,029,099 | 2,170,639 | 2,046,949 |
Benefits paid | (1,876,014) | (1,834,681) | (1,679,794) |
Actuarial (gains)/losses | 1,674,908 | 871,308 | 2,844,733 |
Others | 180,463 | 10,612 | 16,023 |
Present value of the obligations at end of year | R$ 24013207 | R$ 22001609 | R$ 20769126 |
Provisions for pensions and s_7
Provisions for pensions and similar obligations (Details 5) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Other Similar Obligations [Abstract] | ||||
Present value of the obligations at beginning of year | R$ 5043761 | R$ 4246489 | R$ 6034734 | |
Current service cost (Note 40) | 5,797 | 5,476 | 9,064 | |
Interest cost | 438,567 | 447,653 | 703,874 | |
Benefits paid | (346,185) | (339,538) | (465,029) | |
Actuarial (gains)/losses | 455,193 | 683,681 | 1,330,371 | |
Other | [1],[2] | (808,061) | 0 | (3,366,525) |
Present value of the obligations at end of year | R$ 4789072 | R$ 5043761 | R$ 4246489 | |
[1] | In the fourth quarter of 2016, Banco Santander updated the procedures for recognizing its obligations to the entity CABESP, in accordance with its bylaws, which establishes the coverage of medical costs in the equality of proportion between associates and sponsor. | |||
[2] | In the year ended December 31, 2018 there was an increase in the cost contribution established for a postemployment benefit plan, which is calculated as a percentage of the total monthly compensation of associates. The increase in the contribution resulted in a decrease in the past service cost, due to changes in the plan. The envisaged changes implied a reduction in the present value of the obligations of the defined benefit plan, which is supported by actuarial valuations. In the Consolidated Statements of Income, this amount was recorded under Provision (Net). |
Provisions for pensions and s_8
Provisions for pensions and similar obligations (Details 6) - Post-employment plans - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Post-Employment Plans | |||
Fair value of plan assets at beginning of year | R$ 20689637 | R$ 20116916 | R$ 16275269 |
Interest (Expense) Income | 1,904,345 | 2,100,211 | 1,926,424 |
Remeasurement - Actual return (loss) on plan assets excluding the amounts included in net interest expense | 1,347,689 | 268,309 | 1,589,517 |
Contributions/(surrenders) | 481,959 | 38,883 | 2,001,806 |
Of which: | |||
By the Bank | 472,723 | 27,439 | 1,985,722 |
By plan participants | 9,236 | 11,444 | 16,084 |
Benefits paid | (1,876,014) | (1,834,682) | (1,676,116) |
Exchange differences and other items | 161,374 | 0 | 16 |
Fair value of plan assets at end of year | R$ 22708990 | R$ 20689637 | R$ 20116916 |
Provisions for pensions and s_9
Provisions for pensions and similar obligations (Details 7) - Other Similar Obligations - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Similar Obligations | |||
Fair value of plan assets at beginning of year | R$ 3721147 | R$ 3310895 | R$ 5673071 |
Interest (Expense) Income | 362,444 | 348,078 | 665,811 |
Remeasurement - Actual return (loss) on plan assets excluding the amounts included in net interest expense | 304,632 | 303,504 | 718,628 |
Contributions/(surrenders) | 72,548 | 61,803 | 0 |
Of which: | |||
By the Bank | 72,548 | 61,803 | 0 |
Benefits paid | (310,458) | (303,133) | (3,746,615) |
Exchange differences and other items | 6,938 | 0 | 0 |
Fair value of plan assets at end of year | R$ 4157251 | R$ 3721147 | R$ 3310895 |
Provisions for pensions and _10
Provisions for pensions and similar obligations (Details 8) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Post Employment Plans [Abstract] | |||
Experience Plan | R$ 803717 | R$ 686204 | R$ 696910 |
Changes in Financial Assumptions | (871,176) | (1,557,689) | (2,135,189) |
Changes in Financial Demographic | 0 | 146 | (12,773) |
Gain (Loss) Actuarial - Obligation | (1,674,893) | (871,339) | (2,844,872) |
Return on Investment, Return Unlike Implied Discount Rate | 1,344,089 | 270,158 | 1,589,446 |
Gain (Loss) Actuarial - Asset | 1,344,089 | 270,158 | 1,589,446 |
Changes in Surplus / Deficit Uncollectible | R$ 117320 | R$ 15690 | R$ 0 |
Provisions for pensions and _11
Provisions for pensions and similar obligations (Details 9) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Similar Obligations [Abstract] | |||
Experience Plan | R$ 79810 | R$ 303396 | R$ 1116845 |
Changes in Financial Assumptions | (376,949) | (380,285) | (537,952) |
Changes in Financial Demographic | 0 | 0 | (379) |
Gain (Loss) Actuarial - Obligation | (456,759) | (683,681) | (1,655,176) |
Return on Investment, Return Unlike Implied Discount Rate | 307,048 | 303,504 | 718,628 |
Gain (Loss) Actuarial - Asset | 307,048 | 303,504 | 718,628 |
Changes in Surplus Uncollectible | R$ 52604 | R$ 0 | R$ 0 |
Provisions for pensions and _12
Provisions for pensions and similar obligations (Details 10) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Post-employment plans | |||
Post-Employment Plans | |||
Experience in Net Assets Adjustments | R$ 1347689 | R$ 268309 | R$ 1589517 |
Provisions for pensions and _13
Provisions for pensions and similar obligations (Details 11) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Similar Obligations | |||
Other Similar Obligations | |||
Experience in Net Assets Adjustments | R$ 304632 | R$ 303504 | R$ 718628 |
Provisions for pensions and _14
Provisions for pensions and similar obligations (Details 12) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amounts Of Actuarial Obligation Of Defined Benefit Plans Uninsured And Defined Benefit Plans Partially Or Totally Covered [Abstract] | |||
Defined benefit plans uninsured | R$ 700347 | R$ 701551 | R$ 826963 |
Defined benefit plans partially or totally covered | R$ 28101932 | R$ 26343818 | R$ 22734017 |
Provisions for pensions and _15
Provisions for pensions and similar obligations (Details 13) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Plan Assets As Percentage Of Total Plan Assets [Abstract] | |||
Equity instruments | 4.81% | 4.60% | 1.00% |
Debt instruments | 94.59% | 94.70% | 98.16% |
Properties | 0.28% | 0.35% | 0.30% |
Other | 0.32% | 0.35% | 0.54% |
Provisions for pensions and _16
Provisions for pensions and similar obligations (Details 14) | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Estimated Benefits Payable [Abstract] | |
2019 | R$ 2109187 |
2020 | 2,160,320 |
2021 | 2,209,720 |
2022 | 2,281,827 |
2023 | 2,352,046 |
2024 to 2028 | 12,734,200 |
Total | R$ 23847300 |
Provisions for pensions and _17
Provisions for pensions and similar obligations (Details 15) R$ in Thousands | Dec. 31, 2018BRL (R$) |
Sensitivity (+) 1.0% | |
Effects | |
Effect on current service cost and interest on actuarial liabilities | R$ 69961 |
Effects on present value of obligation | 761,619 |
Sensitivity (-) 1.0% | |
Effects | |
Effect on current service cost and interest on actuarial liabilities | (62,469) |
Effects on present value of obligation | R$ 680061 |
Provisions for pensions and _18
Provisions for pensions and similar obligations (Details 16) | 12 Months Ended |
Dec. 31, 2018 | |
Banesprev Plans I | |
Duration of the actuarial liabilities of the plans - Post-Employment Plans Duration (in years) | |
Plans | 11.35 |
Banesprev Plans II | |
Duration of the actuarial liabilities of the plans - Post-Employment Plans Duration (in years) | |
Plans | 11.73 |
Banesprev Plans III | |
Duration of the actuarial liabilities of the plans - Post-Employment Plans Duration (in years) | |
Plans | 9.39 |
Banesprev Plans IV | |
Duration of the actuarial liabilities of the plans - Post-Employment Plans Duration (in years) | |
Plans | 14 |
Banesprev Plans V | |
Duration of the actuarial liabilities of the plans - Post-Employment Plans Duration (in years) | |
Plans | 8.87 |
Banesprev Pre-75 | |
Duration of the actuarial liabilities of the plans - Post-Employment Plans Duration (in years) | |
Plans | 9.62 |
Sanprev I | |
Duration of the actuarial liabilities of the plans - Post-Employment Plans Duration (in years) | |
Plans | 6.47 |
Sanprev II | |
Duration of the actuarial liabilities of the plans - Post-Employment Plans Duration (in years) | |
Plans | 10.83 |
Sanprev III | |
Duration of the actuarial liabilities of the plans - Post-Employment Plans Duration (in years) | |
Plans | 9.66 |
Bandeprev Basic | |
Duration of the actuarial liabilities of the plans - Post-Employment Plans Duration (in years) | |
Plans | 9.57 |
Bandeprev Special I | |
Duration of the actuarial liabilities of the plans - Post-Employment Plans Duration (in years) | |
Plans | 6.70 |
Bandeprev Special II | |
Duration of the actuarial liabilities of the plans - Post-Employment Plans Duration (in years) | |
Plans | 6.52 |
SantanderPrevi | |
Duration of the actuarial liabilities of the plans - Post-Employment Plans Duration (in years) | |
Plans | 7.30 |
CACIBAN | |
Duration of the actuarial liabilities of the plans - Post-Employment Plans Duration (in years) | |
Plans | 6.79 |
DAB | |
Duration of the actuarial liabilities of the plans - Post-Employment Plans Duration (in years) | |
Plans | 5.79 |
DCA | |
Duration of the actuarial liabilities of the plans - Post-Employment Plans Duration (in years) | |
Plans | 6.37 |
Provisions for pensions and _19
Provisions for pensions and similar obligations (Details 17) | 12 Months Ended |
Dec. 31, 2018 | |
Cabesp | |
Duration of the actuarial liabilities of the plans - Other Similar Obligations | |
Plans | 14.16 |
Bandepe | |
Duration of the actuarial liabilities of the plans - Other Similar Obligations | |
Plans | 14.73 |
Free Clinic | |
Duration of the actuarial liabilities of the plans - Other Similar Obligations | |
Plans | 11.04 |
Lifetime officers | |
Duration of the actuarial liabilities of the plans - Other Similar Obligations | |
Plans | 8.63 |
Circulars - Banco ABN Amro | |
Duration of the actuarial liabilities of the plans - Other Similar Obligations | |
Plans | 11.72 |
Circulars - Banco Real | |
Duration of the actuarial liabilities of the plans - Other Similar Obligations | |
Plans | 10.68 |
Life Insurance | |
Duration of the actuarial liabilities of the plans - Other Similar Obligations | |
Plans | 7.82 |
Provisions for pensions and _20
Provisions for pensions and similar obligations (Details 18) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension | |||
Actuarial Assumptions Adopted in Calculations | |||
Nominal Discount Rate for Actuarial Obligation | 9.10% | 9.50% | 10.90% |
Rate Calculation of Interest Under Assets to the Next Year | 9.10% | 9.50% | 10.90% |
Estimated Long-term Inflation Rate | 4.00% | 4.00% | 4.50% |
Estimated Salary Increase Rate | 5.00% | 5.00% | 5.00% |
Mortality tables | AT2000 | AT2000 | AT2000 |
Health | |||
Actuarial Assumptions Adopted in Calculations | |||
Nominal Discount Rate for Actuarial Obligation | 9.30% | 9.70% | 10.80% |
Rate Calculation of Interest Under Assets to the Next Year | 9.30% | 9.70% | 10.80% |
Estimated Long-term Inflation Rate | 4.00% | 4.00% | 4.50% |
Estimated Salary Increase Rate | 5.00% | 5.00% | 5.00% |
Mortality tables | AT2000 | AT2000 | AT2000 |
Provisions for pensions and _21
Provisions for pensions and similar obligations (Details Text) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Provisions for pensions and similar obligations [Abstract] | |||
Provisions for pensions and similar obligations | R$ 3357654 | R$ 3923457 | R$ 2710627 |
SantanderPrevi defined contribution amount | |||
SantanderPrevi defined contribution amount | 89,959 | R$ 86449 | R$ 87603 |
SBPREV defined contribution amount | |||
SBPREV - Santander Brasil Open Pension Plan defined contribution amount | R$ 1597 | ||
Actuarial Techniques | |||
Nominal discount rate for actuarial obligation and calculation of interest on assets - Banesprev, Sanprev, SantanderPrevi, Bandeprev and other plans | 9.10% | 9.53% | 10.90% |
Nominal discount rate for actuarial obligation and calculation of interest on assets - Cabesp, Law 9,656 and other obligations | 9.30% | 9.65% | 10.80% |
Estimated long-term inflation rate - Banesprev, Sanprev, SantanderPrevi, Bandeprev and other plans | 4.00% | 4.00% | 4.50% |
- Banesprev, Sanprev, SantanderPrevi, Bandeprev Básico and Other Plans - 5.0% (2017 - 5.0% and 2016 - 5.0%). | 5.00% | 5.00% | 5.00% |
Actual return on plan assets | |||
Actual return on plan assets | R$ 3823004 | R$ 3021950 | R$ 4900380 |
Provisions for judicial and a_3
Provisions for judicial and administrative proceedings, commitments and other provisions (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Legal proceedings provision [abstract] | ||||
Judicial and administrative proceedings under the responsibility of former controlling stockholders (Note 15) | R$ 605638 | R$ 707131 | R$ 814925 | |
Judicial and administrative proceedings | 9,507,240 | 8,365,320 | 7,470,344 | |
Of which: | ||||
Civil | 3,377,338 | 2,522,005 | 1,842,549 | |
Labor | 3,819,107 | 3,448,388 | 3,138,645 | |
Tax and Social Security | 2,310,795 | 2,394,927 | 2,489,150 | |
Provisions for contingent commitments (Note 23.b) | 626,267 | 0 | 0 | |
Others provisions | [1] | 599,099 | 991,008 | 780,595 |
Total | R$ 11338244 | R$ 10063459 | R$ 9065864 | |
[1] | In 2018, includes R$126.561 (2017 - R$287,446 and 2016 - R$450,284) relating to the expenses of projects aimed at improving operational productivity and efficiency. |
Provisions for judicial and a_4
Provisions for judicial and administrative proceedings, commitments and other provisions (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in Provisions | ||||
Balance at beginning of year | R$ 13986915 | R$ 11776490 | R$ 11409677 | |
Additions charged to income: | ||||
Interest expense and similar charges (Note 32 & 33) | 320,559 | 275,836 | 287,576 | |
Personnel Expenses (Note 40) | 8,939 | 20,081 | 24,480 | |
Constitutions / Reversals and Adjustment of provisions | 2,755,180 | 3,114,407 | 2,706,073 | |
Other Comprehensive Income | 483,058 | 1,028,090 | (153,595) | |
Additions to provisions for contingent commitments | (48,246) | 0 | 0 | |
Payments to pensioners and early retirees with a charge to internal provisions | 0 | 1,876,888 | ||
Payments to external funds | (594,024) | (127,357) | (2,074,873) | |
Amount paid | (2,247,172) | (2,123,483) | (2,330,283) | |
Transfer to other assets - actuarial assets (Note 15) | 16,998 | 14,457 | 0 | |
Transfers, exchange differences and other changes | 13,691 | 8,394 | 30,547 | |
Balance at end of year | 14,695,898 | 13,986,915 | 11,776,490 | |
Pensions | ||||
Changes in Provisions | ||||
Balance at beginning of year | [1] | 3,923,456 | 2,710,626 | 2,696,653 |
Additions charged to income: | ||||
Interest expense and similar charges (Note 32 & 33) | [1] | 320,559 | 275,836 | 287,576 |
Personnel Expenses (Note 40) | [1] | 8,939 | 20,081 | 24,480 |
Constitutions / Reversals and Adjustment of provisions | [1] | (801,332) | 1,723 | 60,309 |
Other Comprehensive Income | [1] | 483,058 | 1,028,090 | (153,595) |
Additions to provisions for contingent commitments | [1] | 0 | 0 | 0 |
Payments to pensioners and early retirees with a charge to internal provisions | [1] | 0 | 0 | 1,876,888 |
Payments to external funds | [1] | (594,024) | (127,357) | (2,074,873) |
Amount paid | [1] | 0 | 0 | 0 |
Transfer to other assets - actuarial assets (Note 15) | [1] | 16,998 | 14,457 | 0 |
Transfers, exchange differences and other changes | [1] | 0 | 0 | (6,812) |
Balance at end of year | [1] | 3,357,654 | 3,923,456 | 2,710,626 |
Other Provisions | ||||
Changes in Provisions | ||||
Balance at beginning of year | 10,063,459 | 9,065,864 | 8,713,024 | |
Additions charged to income: | ||||
Interest expense and similar charges (Note 32 & 33) | 0 | 0 | 0 | |
Personnel Expenses (Note 40) | 0 | 0 | 0 | |
Constitutions / Reversals and Adjustment of provisions | 3,556,512 | 3,112,684 | 2,645,764 | |
Other Comprehensive Income | 0 | 0 | 0 | |
Additions to provisions for contingent commitments | (48,246) | 0 | 0 | |
Payments to pensioners and early retirees with a charge to internal provisions | 0 | 0 | 0 | |
Payments to external funds | 0 | 0 | 0 | |
Amount paid | (2,247,172) | (2,123,483) | (2,330,283) | |
Transfer to other assets - actuarial assets (Note 15) | 0 | 0 | 0 | |
Transfers, exchange differences and other changes | 13,691 | 8,394 | 37,359 | |
Balance at end of year | R$ 11338244 | R$ 10063459 | R$ 9065864 | |
[1] | For further information, see note 15. Provisions for pension funds and similar obligations. |
Provisions for judicial and a_5
Provisions for judicial and administrative proceedings, commitments and other provisions (Details 3) R$ in Thousands | Dec. 31, 2018BRL (R$) |
Provisions For Contingent Payments [Abstract] | |
Balance at beginning of year (in 1/01/2018 after the initial adoption of the IFRS 9) | R$ 674513 |
Creation of provision for contingent commitments | (48,246) |
Balance at end of year | R$ 626267 |
Provisions for judicial and a_6
Provisions for judicial and administrative proceedings, commitments and other provisions (Details Text) - BRL (R$) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Provisions For Civil Labor Tax And Social Security Contingencies [Abstract] | |||
Reversal of provision related to the Incentive Payment and Installment Programs of the municipalities of São Paulo and Rio de Janeiro - ISS | R$ 435454 | ||
Reversal of provision related to the Incentive Payment and Installment Programs of the municipalities of São Paulo and Rio de Janeiro - ISS - income statement | 96,129 | ||
Benefits of the adherence to the program included judicial and administrative tax cases related to Income Tax, Social Contribution and Social Security Contributions from 1999 to 2005 tax periods | 534,001 | ||
PIS and COFINS | R$ 3632467 | 3,501,464 | R$ 3290900 |
Increase in CSLL tax rate | 0 | 905,113 | 851,744 |
Provisional Contribution on Financial Transactions (CPMF) on Customer Operations | 729,919 | 714,604 | 689,987 |
Social Security Contribution (INSS) | 273,233 | 265,022 | 266,391 |
Tax on Services (ISS) - Financial Institutions | 228,403 | 714,604 | 621,437 |
Civil, Labor, Tax, and Security Social Liabilities Contingent Classified with Loss Risk as Possible | |||
Tax lawsuits | 24,929,000 | ||
INSS on Profits or Results (PLR) | 5,354,000 | ||
Tax on Services (ISS) | 3,662,000 | ||
Unapproved Compensation | 2,505,000 | ||
Goodwill Amortization of Banco Real | 1,377,000 | ||
Credit Losses | 1,039,000 | ||
Use of CSLL Tax and Negative Tax Loss | 1,022,000 | ||
Goodwill amortization of Banco Sudameris | 615,000 | ||
IRPJ and CSLL - Capital Gain | 300,000 | ||
Labor clains | 62,000 | ||
Civil lawsuits | 1.467000 | ||
Judicial and administrative proceedings under the responsibility of former controlling stockholders | |||
Tax lawsuits | 598,544 | 698,141 | 810,383 |
Labor lawsuits | 327 | 2,607 | 712 |
Civil lawsuits | R$ 6767 | R$ 6381 | R$ 3830 |
Tax assets and liabilities (Det
Tax assets and liabilities (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income And Social Contribution Taxes [Abstract] | ||||
Operating Profit Before Tax | R$ 15909771 | R$ 14513684 | R$ 16383902 | |
Interest on capital | [1] | (4,080,000) | (3,800,000) | (3,850,000) |
Operating Profit Before Tax | 11,829,771 | 10,713,684 | 12,533,902 | |
Rates (25% income tax and 20% social contribution tax) | (5,323,397) | (4,821,158) | (5,640,256) | |
PIS and COFINS (net of income and social contribution taxes) | [2],[3] | (1,490,190) | (1,427,960) | (1,641,181) |
Non-taxable/Non-deductible: | ||||
Equity in affiliates | 29,681 | 32,198 | 21,392 | |
Goodwill | [4] | (101,305) | (669,963) | (734,952) |
Exchange variation - foreign branches | [5] | 2,792,995 | 440,857 | (3,561,133) |
Net Indeductible Expenses of Non-Taxable Income | [2] | 384,554 | 194,737 | 0 |
Adjustments: | ||||
Constitution of income and social contribution taxes on temporary differences | 136,353 | 1,138,005 | 605,058 | |
Effects of change in rate of social contribution taxes | [6],[7] | (90,013) | (1,427,667) | (613,202) |
Other adjustments | [7] | 551,469 | 1,165,315 | 2,645,290 |
Income taxes | (3,109,853) | (5,375,636) | (8,918,984) | |
Of which: | ||||
Current tax | [2] | (4,704,293) | (4,969,241) | (3,575,099) |
Deferred taxes | 1,594,440 | (406,395) | (5,343,885) | |
Taxes paid in the year | R$ 3668571 | R$ 3280230 | R$ 4240115 | |
[1] | Amount distributed to shareholders as interest attributable to shareholders' equity. For accounting purposes, although the interest should be reflected in the income statement for tax deduction, the charge is reversed before the calculation of the net income in the financial statements and deducted from the shareholders' equity since it is considered as dividend. | |||
[2] | Includes mainly the tax effect on expenses with donations, revenues from judicial deposit updates and other income and expenses that do not qualify as temporary differences. | |||
[3] | PIS and COFINS are considered a profit-base component (net basis of certain revenues and expenses), therefore and accordingly to IAS 12 they are recorded as income taxes. | |||
[4] | The difference between the tax basis and accounting basis of goodwill on acquisition of Banco ABN Amro Real S.A. is a permanent and definitive difference. Administration in this case the possibility of loss on impairment or disposal is remote and only applies to the entity as a whole and according to the characteristics of the business combination performed, it is not possible to segregate and identify the business originally acquired. Therefore deferred tax liability is not record. | |||
[5] | Permanent difference related of foreign currency exchange variation on investments abroad nontaxable/ deductible (see details below). | |||
[6] | Effect of the rate differential for other non-financial corporations, with a social contribution rate of 9%, as well as the effect of the additional 5% applicable to financial institutions, valid until the end of 2018. | |||
[7] | In 2016, includes the IAS 21 amounted to R$575.131 (see Hedge of Investments Abroad below) and non-taxable income/non-deductible expenses R$349.120. |
Tax assets and liabilities (D_2
Tax assets and liabilities (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Exchange differences (net) [Abstract] | |||
Result generated by the exchange rate variations on the Bank's investment in the Cayman, Luxemburg and EFC Branch | R$ 6673535 | R$ 892863 | R$ 7407231 |
Gains (losses) on financial assets and liabilities (net) | |||
Result generated by derivative contracts used as hedge | (12,540,855) | (1,702,557) | 14,124,481 |
Income Taxes | |||
Tax effect of derivative contracts used as hedge - PIS / COFINS | 255,481 | 80,170 | (656,788) |
Tax effect of derivative contracts used as hedge - IR / CS | R$ 5611839 | R$ 729524 | R$ 6060462 |
Tax assets and liabilities (D_3
Tax assets and liabilities (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of average effective tax rate and applicable tax rate [abstract] | |||
Operating Profit Before Tax | R$ 15909771 | R$ 14513684 | R$ 16383902 |
Income tax | R$ 3109853 | R$ 5375636 | R$ 8918984 |
Effective tax rate | 19.55% | 37.04% | 54.44% |
Tax assets and liabilities (D_4
Tax assets and liabilities (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Tax Recognized In Equity [Abstract] | |||
Tax credited to equity | R$ 2785330 | R$ 3373984 | R$ 2955552 |
Measurement of available-for-sale securities | 0 | 1,016,121 | 963,990 |
Measurement at fair value through other comprehensive income | 369,805 | 0 | 0 |
Measurement of cash flow hedges | 2,081 | 1,063 | 4,145 |
Measurement of investment hedges | 562,353 | 562,353 | 562,353 |
Defined benefit plan | 1,851,091 | 1,794,447 | 1,425,064 |
Tax charged to equity | (2,168,758) | (2,541,177) | (1,795,115) |
Measurement of available-for-sale securities | 0 | (2,426,459) | (1,701,732) |
Measurement at fair value through other comprehensive income | (1,997,600) | 0 | 0 |
Measurement of cash flow hedges | (163,038) | (111,134) | (87,929) |
Defined benefit plan | (8,120) | (3,584) | (5,454) |
Total | R$ 616572 | R$ 832807 | R$ 1160437 |
Tax assets and liabilities (D_5
Tax assets and liabilities (Details 5) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Deferred tax assets and liabilities [abstract] | ||||
Tax assets: | R$ 27680578 | R$ 24778078 | R$ 24437112 | |
Of which: | ||||
Temporary differences | [1] | 26,416,527 | 23,375,600 | 23,398,886 |
Tax loss carry forwards | 846,587 | 866,579 | 382,867 | |
Social contribution taxes 18% | 417,464 | 535,899 | 655,359 | |
Total deferred tax assets | 27,680,578 | 24,778,078 | 24,437,112 | |
Tax liabilities: | 3,031,389 | 2,496,531 | 1,268,037 | |
Of which: | ||||
Excess depreciation of leased assets | 123,257 | 124,909 | 144,623 | |
Adjustment to fair value of trading securities and derivatives | 2,908,132 | 2,371,622 | 1,123,414 | |
Total deferred tax liabilities | R$ 3031389 | R$ 2496531 | R$ 1268037 | |
[1] | Temporary differences relate mainly to impairment losses on loans and receivables and provisions for lawsuits and administrative proceedings, and the effect of the fair value of financial instruments. |
Tax assets and liabilities (D_6
Tax assets and liabilities (Details 6) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Balances at | |||||
Deferred tax assets | |||||
Tax assets: | R$ 27680578 | R$ 24778078 | R$ 24437112 | R$ 30575504 | |
Temporary differences | 26,416,527 | 23,375,600 | 23,398,886 | 29,538,257 | |
Tax loss carry forwards | 846,587 | 866,579 | 382,867 | 381,888 | |
Social contribution taxes 18% | 417,464 | 535,899 | 655,359 | 655,359 | |
Tax liabilities: | 3,031,389 | 2,496,531 | 817,125 | 312,420 | |
Temporary differences | 3,031,389 | 2,496,531 | 817,125 | 312,420 | |
Total | 24,649,189 | 22,281,547 | 23,619,987 | R$ 30263084 | |
Acquisition / Merger | |||||
Deferred tax assets | |||||
Tax assets: | 44,509 | 38,151 | 107,253 | ||
Temporary differences | 44,509 | 38,151 | 107,253 | ||
Tax loss carry forwards | 0 | 0 | 0 | ||
Social contribution taxes 18% | 0 | 0 | 0 | ||
Tax liabilities: | 831 | 5,350 | 0 | ||
Temporary differences | 831 | 5,350 | 0 | ||
Total | 43,678 | 32,801 | 107,253 | ||
Other | |||||
Deferred tax assets | |||||
Tax assets: | [1] | 1,369,934 | (620,401) | 652,599 | |
Temporary differences | [1] | 1,369,934 | (620,401) | 652,599 | |
Tax loss carry forwards | [1] | 0 | 0 | 0 | |
Social contribution taxes 18% | [1] | 0 | 0 | 0 | |
Tax liabilities: | [1] | (153,623) | 378,693 | 93,991 | |
Temporary differences | [1] | (153,623) | 378,693 | 93,991 | |
Total | [1] | 1,523,557 | (999,094) | 558,608 | |
Valuation adjustments | |||||
Deferred tax assets | |||||
Tax assets: | [2] | (186,260) | 254,733 | (1,580,025) | |
Temporary differences | [2] | (186,260) | 254,733 | (1,580,025) | |
Tax loss carry forwards | [2] | 0 | 0 | 0 | |
Social contribution taxes 18% | [2] | 0 | 0 | 0 | |
Tax liabilities: | [2] | 607,773 | 582,363 | 962,406 | |
Temporary differences | [2] | 607,773 | 582,363 | 962,406 | |
Total | [2] | (794,033) | (327,630) | (2,542,431) | |
Adjustment to Income | |||||
Deferred tax assets | |||||
Tax assets: | 1,674,317 | 668,483 | (5,318,219) | ||
Temporary differences | 1,812,744 | 304,231 | (5,319,198) | ||
Tax loss carry forwards | (19,992) | 483,712 | 979 | ||
Social contribution taxes 18% | (118,435) | (119,460) | 0 | ||
Tax liabilities: | 79,877 | 262,088 | (551,692) | ||
Temporary differences | 79,877 | 262,088 | (551,692) | ||
Total | R$ 1594440 | R$ 406395 | R$ 4766527 | ||
[1] | In 2018, it mainly refers to net of deferred taxes amounted to R$1,216,311 (2017 - R$241,708 and 2016 - R$129,147), which have the same counterparty and realization period. | ||||
[2] | It relates to tax recognized in equity. |
Tax assets and liabilities (D_7
Tax assets and liabilities (Details 7) R$ in Thousands | 12 Months Ended |
Dec. 31, 2018BRL (R$) | |
Tax assets | |
Temporary differences | R$ 27680578 |
Tax loss carry forwards | 3,031,389 |
Social contribution taxes 18% | 3,031,389 |
Total | 27,680,578 |
Tax liabilities | |
Temporary differences | 3,031,389 |
Total | 3,031,389 |
2019 | |
Tax assets | |
Temporary differences | 8,288,397 |
Tax loss carry forwards | 390,185 |
Social contribution taxes 18% | 390,185 |
Total | 8,288,397 |
Tax liabilities | |
Temporary differences | 390,185 |
Total | 390,185 |
2020 | |
Tax assets | |
Temporary differences | 7,034,807 |
Tax loss carry forwards | 402,875 |
Social contribution taxes 18% | 402,875 |
Total | 7,034,807 |
Tax liabilities | |
Temporary differences | 402,875 |
Total | 402,875 |
2021 | |
Tax assets | |
Temporary differences | 7,416,682 |
Tax loss carry forwards | 341,120 |
Social contribution taxes 18% | 341,120 |
Total | 7,416,682 |
Tax liabilities | |
Temporary differences | 341,120 |
Total | 341,120 |
2022 | |
Tax assets | |
Temporary differences | 855,891 |
Tax loss carry forwards | 236,583 |
Social contribution taxes 18% | 236,583 |
Total | 855,891 |
Tax liabilities | |
Temporary differences | 236,583 |
Total | 236,583 |
2023 to 2025 | |
Tax assets | |
Temporary differences | 1,588,828 |
Tax loss carry forwards | 236,583 |
Social contribution taxes 18% | 236,583 |
Total | 1,588,828 |
Tax liabilities | |
Temporary differences | 236,583 |
Total | 236,583 |
2026 to 2027 | |
Tax assets | |
Temporary differences | 1,474,574 |
Tax loss carry forwards | 854,424 |
Social contribution taxes 18% | 854,424 |
Total | 1,474,574 |
Tax liabilities | |
Temporary differences | 854,424 |
Total | 854,424 |
2028 to 2032 | |
Tax assets | |
Temporary differences | 1,021,399 |
Tax loss carry forwards | 569,619 |
Social contribution taxes 18% | 569,619 |
Total | 1,021,399 |
Tax liabilities | |
Temporary differences | 569,619 |
Total | R$ 569619 |
Other liabilities (Details 1)
Other liabilities (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other liabilities [Abstract] | ||||
Accrued expenses and deferred income | [1] | R$ 3193291 | R$ 3036374 | R$ 2925598 |
Transactions in transit | [2] | 925,336 | 980,501 | 916,844 |
Provision for share-based payment | 260,739 | 270,626 | 212,384 | |
Liabilities for insurance contracts | 1,797,167 | 1,587,603 | 1,584,303 | |
Other | [3] | 2,918,615 | 2,138,817 | 2,559,970 |
Total | R$ 9095148 | R$ 8013921 | R$ 8199099 | |
[1] | Corresponds, mainly, to payments to be made - personnel expenses. | |||
[2] | Includes mainly the amounts to transfer to the credit card companies (resources in transit) and amount to release referred to the real estate credits. | |||
[3] | Includes credits for funds to be released, such as Administratives expenses, amounts due to associates and suppliers. |
Other Comprehensive Income (Det
Other Comprehensive Income (Details 1) R$ in Thousands | Dec. 31, 2018BRL (R$) |
Revaluation gains | |
Debt Instruments | |
Government debt securities | R$ 3917451 |
Private-sector debt securities | 1,546,895 |
Total | 5,464,346 |
Revaluation losses | |
Debt Instruments | |
Government debt securities | (1,608,673) |
Private-sector debt securities | (1,863,092) |
Total | (3,471,765) |
Net revaluation gains (losses) | |
Debt Instruments | |
Government debt securities | 2,308,778 |
Private-sector debt securities | (316,197) |
Total | 1,992,581 |
Fair value | |
Debt Instruments | |
Government debt securities | 85,395,136 |
Private-sector debt securities | 555 |
Total | R$ 85395691 |
Other Comprehensive Income (D_2
Other Comprehensive Income (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Revaluation gains | ||
Debt Instruments | ||
Government debt securities | R$ 1616486 | R$ 454609 |
Private-sector debt securities | 10,694 | 101,593 |
Equity instruments | ||
Domestic | 230,722 | 220,535 |
Of which: | ||
Listed | 156,236 | 147,844 |
Unlisted | 74,486 | 72,691 |
Total | 1,857,902 | 776,737 |
Revaluation losses | ||
Debt Instruments | ||
Government debt securities | (6,942) | (31,288) |
Private-sector debt securities | (2,227) | (6,501) |
Equity instruments | ||
Domestic | (35,159) | (72,758) |
Of which: | ||
Listed | (5,322) | (50,269) |
Unlisted | (29,837) | (22,489) |
Total | (44,328) | (110,547) |
Net revaluation gains (losses) | ||
Debt Instruments | ||
Government debt securities | 1,609,544 | 423,321 |
Private-sector debt securities | 8,467 | 95,092 |
Equity instruments | ||
Domestic | 195,563 | 147,777 |
Of which: | ||
Listed | 150,914 | 97,575 |
Unlisted | 44,649 | 50,202 |
Total | 1,813,574 | 666,190 |
Fair value | ||
Debt Instruments | ||
Government debt securities | 79,462,303 | 50,384,382 |
Private-sector debt securities | 5,254,444 | 5,445,190 |
Equity instruments | ||
Domestic | 1,106,637 | 1,985,473 |
Of which: | ||
Listed | 965,547 | 1,024,505 |
Unlisted | 141,090 | 960,968 |
Total | R$ 85823384 | R$ 57815045 |
Non-controlling interests (Deta
Non-controlling interests (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity Noncontrolling Interests [Abstract] | ||||
Santander Leasing S.A. Arrendamento Mercantil | R$ 447 | R$ 395 | R$ 441 | |
Santander Brasil Advisory Services S.A | 0 | 0 | 529 | |
Getnet S.A. | 249,007 | 206,105 | 168,863 | |
Olé Consignado S.A. | 116,967 | 82,432 | 30,425 | |
Santander Serviços Técnicos, Administrativos e de Corretagem de Seguros | 0 | 0 | 318,498 | |
BW Guirapá S.A. | 0 | 0 | 68,691 | |
Banco PSA Finance Brasil S.A. | 155,399 | 147,295 | 138,057 | |
Santander FI SBAC | [1] | 62,595 | 0 | 0 |
Rojo Entretenimento S.A. | 7,015 | 0 | 0 | |
Return Capital Serviços de Recuperação de Créditos S.A. (Current name of Ipanema Empreendimentos e Participações Ltda.) | 1,155 | 667 | 0 | |
Total | R$ 592585 | R$ 436894 | R$ 725504 | |
[1] | The SBAC Fund, is an exclusive investment fund of the Consolidated Santander and many companies has their investments on it. As some companies has a parcel of non-controlling shareholders, this amount refers to the valuation of the equity of that Fund and as a consequence the effect on each company. |
Non-controlling interests (De_2
Non-controlling interests (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Profit (loss), attributable to [abstract] | |||
Profit attributable to non-controlling interests | R$ 217441 | R$ 213984 | R$ 130355 |
Of which: | |||
Santander Leasing S.A. Arrendamento Mercantil | 25 | 48 | 41 |
Santander Brasil Advisory Services S.A | 0 | 0 | 34 |
Getnet S.A. | 55,518 | 48,842 | 27,209 |
Olé Consignado S.A. | 138,527 | 53,286 | 5,432 |
Santander Serviços Técnicos, Administrativos e de Corretagem de Seguros | 0 | 92,365 | 98,717 |
BW Guirapá S.A. | 0 | (776) | (2,957) |
Banco PSA Finance Brasil S.A. | 17,914 | 19,884 | 1,879 |
Santander FI SBAC | 4,141 | 0 | 0 |
Rojo Entretenimento S.A. | 166 | 0 | 0 |
Return Capital Serviços de Recuperação de Créditos S.A. (Current name of Ipanema Empreendimentos e Participações Ltda.) | R$ 1150 | R$ 335 | R$ 0 |
Non-controlling interests (De_3
Non-controlling interests (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Changes In Non Controlling Interests [Abstract] | ||||
Balance at beginning of year | R$ 436894 | R$ 725504 | R$ 435062 | |
Additions / disposals (net) due to change in the scope of consolidation | [1],[2] | 6,849 | (660,230) | 159,469 |
Incorporation / Acquisition | [3] | 0 | 296,184 | 0 |
Dividends paid / Interest on Capital | (60,936) | (133,641) | (18,140) | |
Capital increase | [4] | 48,000 | 0 | 20,000 |
Profit attributable to non-controlling interests | 217,441 | 213,984 | 130,355 | |
Transition Adjustments to the amendments to the IAS 19 | 0 | (1,790) | (1,604) | |
Update PUT Olé Consignado S.A. | (106,440) | 0 | 0 | |
Update of SBAC Fund Quotas | 58,454 | 0 | 0 | |
Others | (7,677) | (3,117) | 362 | |
Balance at end of year | R$ 592585 | R$ 436894 | R$ 725504 | |
[1] | In 2017 refers mainly to the balance of Non-controlling Shareholding of Santander Corretora de Seguros. | |||
[2] | In 2017 refers mainly to the participation of non-controlling shareholders of BW Guirapa, in 2016 refers to BW Guirapa. | |||
[3] | In 2017, it refers mainly to the balance of non-controlling interests of Santander Corretora de Seguros, prior to the merger events (Note 3). | |||
[4] | Increase in the share capital of Ole Consignado. |
Shareholders' equity (Details 1
Shareholders' equity (Details 1) - shares shares in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Capital | |||
Brazilian residents | 189,742 | 157,986 | 160,447 |
Foreign residents | 7,308,789 | 7,340,545 | 7,402,636 |
Total shares | 7,498,531 | 7,498,531 | 7,563,083 |
(-) Treasury shares | (26,634) | (11,690) | (51,572) |
Total outstanding | 7,471,897 | 7,486,841 | 7,511,511 |
Common | |||
Capital | |||
Brazilian residents | 82,043 | 66,207 | 67,498 |
Foreign residents | 3,736,652 | 3,752,488 | 3,783,473 |
Total shares | 3,818,695 | 3,818,695 | 3,850,971 |
(-) Treasury shares | (13,317) | (5,845) | (25,786) |
Total outstanding | 3,805,378 | 3,812,850 | 3,825,185 |
Preferred | |||
Capital | |||
Brazilian residents | 107,699 | 91,779 | 92,949 |
Foreign residents | 3,572,137 | 3,588,057 | 3,619,163 |
Total shares | 3,679,836 | 3,679,836 | 3,712,112 |
(-) Treasury shares | (13,317) | (5,845) | (25,786) |
Total outstanding | 3,666,519 | 3,673,991 | 3,686,326 |
Shareholders' equity (Details 2
Shareholders' equity (Details 2) - BRL (R$) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Thousand of reais | |||||||
Dividends and Interest on Capital | |||||||
Real | R$ 6600000 | R$ 6300000 | R$ 5250000 | ||||
Intercalary Dividends | Thousand of reais | |||||||
Dividends and Interest on Capital | |||||||
Real | R$ 600000 | [1],[2] | R$ 2500000 | [3],[4] | R$ 500000 | [5],[6] | |
Intercalary Dividends | Common | |||||||
Dividends and Interest on Capital | |||||||
Shares | R$ 76.4956 | [1],[2] | R$ 318.2994 | [3],[4] | R$ 63.4290 | [5],[6] | |
Intercalary Dividends | Preferred | |||||||
Dividends and Interest on Capital | |||||||
Shares | 84.1451 | [1],[2] | 350.1293 | [3],[4] | 69.7719 | [5],[6] | |
Intercalary Dividends | Shares / Units | |||||||
Dividends and Interest on Capital | |||||||
Shares | R$ 160.6407 | [1],[2] | R$ 668.4287 | [3],[4] | R$ 133.2009 | [5],[6] | |
Intermediary Dividends | Thousand of reais | |||||||
Dividends and Interest on Capital | |||||||
Real | [6],[7] | R$ 700000 | |||||
Intermediary Dividends | Common | |||||||
Dividends and Interest on Capital | |||||||
Shares | [6],[7] | R$ 88.8309 | |||||
Intermediary Dividends | Preferred | |||||||
Dividends and Interest on Capital | |||||||
Shares | [6],[7] | 97.7140 | |||||
Intermediary Dividends | Shares / Units | |||||||
Dividends and Interest on Capital | |||||||
Shares | [6],[7] | R$ 186.5449 | |||||
Intercalary Dividends | Thousand of reais | |||||||
Dividends and Interest on Capital | |||||||
Real | R$ 1920000 | [2],[8] | R$ 700000 | [6],[9] | |||
Intercalary Dividends | Common | |||||||
Dividends and Interest on Capital | |||||||
Shares | R$ 244.9433 | [2],[8] | R$ 88.8309 | [6],[9] | |||
Intercalary Dividends | Preferred | |||||||
Dividends and Interest on Capital | |||||||
Shares | 269.4376 | [2],[8] | 97.7140 | [6],[9] | |||
Intercalary Dividends | Shares / Units | |||||||
Dividends and Interest on Capital | |||||||
Shares | R$ 514.3809 | [2],[8] | R$ 186.5449 | [6],[9] | |||
Interest on Capital | Thousand of reais | |||||||
Dividends and Interest on Capital | |||||||
Real | R$ 600000 | [2],[10] | R$ 500000 | [4],[11] | R$ 3350000 | [6],[12] | |
Interest on Capital | Common | |||||||
Dividends and Interest on Capital | |||||||
Shares | R$ 76.3304 | [2],[10] | R$ 63.3780 | [4],[11] | R$ 425.1192 | [6],[12] | |
Interest on Capital | Preferred | |||||||
Dividends and Interest on Capital | |||||||
Shares | 83.9634 | [2],[10] | 69.7158 | [4],[11] | 467.6311 | [6],[12] | |
Interest on Capital | Shares / Units | |||||||
Dividends and Interest on Capital | |||||||
Shares | R$ 160.2938 | [2],[10] | R$ 133.0938 | [4],[11] | R$ 892.7503 | [6],[12] | |
Interest on Capital | Thousand of reais | |||||||
Dividends and Interest on Capital | |||||||
Real | R$ 600000 | [2],[13] | R$ 500000 | [4],[14] | |||
Interest on Capital | Common | |||||||
Dividends and Interest on Capital | |||||||
Shares | R$ 76.4985 | [2],[13] | R$ 63.5280 | [4],[14] | |||
Interest on Capital | Preferred | |||||||
Dividends and Interest on Capital | |||||||
Shares | 84.1484 | [2],[13] | 69.8808 | [4],[14] | |||
Interest on Capital | Shares / Units | |||||||
Dividends and Interest on Capital | |||||||
Shares | R$ 160.6469 | [2],[13] | R$ 133.4088 | [4],[14] | |||
Interest on Capital | Thousand of reais | |||||||
Dividends and Interest on Capital | |||||||
Real | R$ 2880000 | [2],[15] | R$ 500000 | [4],[16] | |||
Interest on Capital | Common | |||||||
Dividends and Interest on Capital | |||||||
Shares | R$ 367.4149 | [2],[15] | R$ 63.5917 | [4],[16] | |||
Interest on Capital | Preferred | |||||||
Dividends and Interest on Capital | |||||||
Shares | 404.1564 | [2],[15] | 69.9509 | [4],[16] | |||
Interest on Capital | Shares / Units | |||||||
Dividends and Interest on Capital | |||||||
Shares | R$ 771.5713 | [2],[15] | R$ 133.5426 | [4],[16] | |||
Interest on Capital | Thousand of reais | |||||||
Dividends and Interest on Capital | |||||||
Real | [4],[17] | R$ 2300000 | |||||
Interest on Capital | Common | |||||||
Dividends and Interest on Capital | |||||||
Shares | [4],[17] | R$ 292.8354 | |||||
Interest on Capital | Preferred | |||||||
Dividends and Interest on Capital | |||||||
Shares | [4],[17] | 322.1190 | |||||
Interest on Capital | Shares / Units | |||||||
Dividends and Interest on Capital | |||||||
Shares | [4],[17] | R$ 614.9544 | |||||
[1] | Established by the Board of Directors in June 2018, and were be paid on July 27, 2018 without any compensation as monetary correction. | ||||||
[2] | The amount of interest on stockholders' equity will be fully charged to the mandatory minimum dividends to be distributed by the Bank for the year 2018. | ||||||
[3] | Established by the Board of Directors in December 2017, and was paid on February 26, 2018 without any compensation as monetary correction. | ||||||
[4] | The amount of interest on shareholders' equity and interim dividends was fully charged to the mandatory dividends for the year 2017. | ||||||
[5] | Established by the Board of Directors in June 2016, Common Shares - R$53.9146, preferred - R$59.3061 and Units - R$113.2207 net of taxes. | ||||||
[6] | The amount of intermediate, intercalary dividends and interest on capital will be fully attributed to supplementary and mandatory dividends for the year 2016 and was paid on February 23, 2017, without any compensation to the restatement. | ||||||
[7] | Established by the Board of Directors in December 2016. | ||||||
[8] | Established by the Board of Directors in December 28, 2018, and will be paid on February 26, 2019 without any compensation as monetary correction. | ||||||
[9] | Established by the Board of Directors in December 2016, Common Shares- R$361.3513, preferred - R$397.4864 and Units - R$758.8377 net of taxes. | ||||||
[10] | Established by the Board of Directors in March 27, 2018, Common Shares - R$64.8808, preferred - R$71.3689 e Units - R$136.2497 net of taxes and were be paid in April 26, 2018, without any remuneration for monetary restatement. | ||||||
[11] | Established by the Board of Directors in April 2017, Common Shares - R$53.8713, preferred - R$59.2584 and Units - R$113.1297 net of taxes, and was paid on May 26, 2017 without any compensation as monetary correction. | ||||||
[12] | The amount of the interest on capital were fully input into the mandatory dividends for the year 2016 and were be paid from August 26, 2016 without any compensation as monetary correction. | ||||||
[13] | Established by the Board of Directors in September 28, 2018, Common Shares - R$65.0237, preferred - R$71.5261 e Units - R$136.5498 net of taxes and were be paid in October 26, 2018, without any remuneration for monetary restatement. | ||||||
[14] | Established by the Board of Directors in July 2017, Common Shares - R$53.9988, preferred - R$59.3987 and Units - R$113.3975 net of taxes, and was paid on August 25, 2017 without any compensation as monetary correction. | ||||||
[15] | Established by the Board of Directors in December 28, 2018, Common Shares - R$312.3027, preferred - R$343.5329 e Units - R$655.8356 net of taxes and will be paid in February 26, 2019, without any remuneration for monetary restatement. | ||||||
[16] | Established by the Board of Directors in September 2017, Common Shares - R$54.0530, preferred - R$59.4583 and Units - R$113.5113 net of taxes, and was paid on October 26, 2017 without any compensation as monetary correction. | ||||||
[17] | Established by the Board of Directors in December 2017, Common Shares - R$248.9101, preferred - R$273.8011 and Units - R$522.7112 net of taxes, was paid on February 26, 2018 without any compensation as monetary correction. |
Shareholders' equity (Details 3
Shareholders' equity (Details 3) - BRL (R$) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Units | ||||
Treasury shares | ||||
Treasury shares at beginning of the period | 1,773 | 25,786 | 7,080 | |
Shares Acquisitions | 15,816 | 12,768 | 14,284 | |
Cancellation of Shares | [1],[2] | 0 | (32,276) | 13,138 |
Payment - Share-based compensation | (4,272) | (4,505) | (8,716) | |
Treasury shares at end of the period | 13,317 | 1,773 | 25,786 | |
Balance of Treasury Shares in thousand of reais | [1] | R$ 460550 | R$ 148246 | R$ 513889 |
Issuance Costs in thousands of Reais | 882 | 194 | 145 | |
Balance of Treasury Shares in thousands of reais | R$ 461432 | R$ 148440 | R$ 514034 | |
Cost/Share Price | ||||
Minimum cost | BRL 7.55 | BRL 7.55 | BRL 7.55 | |
Weighted average cost | BRL 28.59 | BRL 24.41 | BRL 19.93 | |
Maximum cost | BRL 43.84 | BRL 32.29 | BRL 26.81 | |
Share Price | BRL 42.70 | BRL 31.88 | BRL 28.32 | |
ADRs | ||||
Treasury shares | ||||
Treasury shares at beginning of the period | 13,138 | |||
Shares Acquisitions | 0 | |||
Cancellation of Shares | [1],[2] | (13,138) | ||
Payment - Share-based compensation | 0 | |||
Treasury shares at end of the period | 0 | |||
Balance of Treasury Shares in thousand of reais | [1] | R$ 0 | ||
Issuance Costs in thousands of Reais | 0 | |||
Balance of Treasury Shares in thousands of reais | R$ 0 | |||
Cost/Share Price | ||||
Minimum cost | USD 4,37 | |||
Weighted average cost | USD 6,17 | |||
Maximum cost | USD 10,21 | |||
Share Price | USD 8,58 | |||
[1] | At the EGM held on September, 18, 2017, it was approved the cancellation of 64,551,366 treasury shares (equivalent to 32,276 thousand Units) with the counterparty headings Capital Reserves and Profit Reserves, which represent the total of treasury shares registered in the book of common shares at that date, without reduction of the capital and consequent change in the clause 5th from the Bylaws in order to reflect the new quantities of common and preferred shares, nominatives and without value which represent the Banco Santander's capital. | |||
[2] | In January 2016 was the transformation of all ADRs that were held in treasury for UNIT's. |
Shareholders' equity (Details T
Shareholders' equity (Details Text) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Treasury Shares Sales [Abstract] | |||
Result of sold treasury shares | R$ 15868 | R$ 2498 | R$ 11574 |
Earnings per share (Details 1)
Earnings per share (Details 1) - BRL (R$) R$ / shares in Units, shares in Thousands, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic earnings per share | |||
Profit attributable to the Parent | R$ 12582477 | R$ 8924064 | R$ 7334563 |
Basic earnings per 1,000 shares (Brazilian Reais) | |||
Earnings per share (Brazilian Reais) | |||
Common shares | R$ 1604.34 | R$ 1133.43 | R$ 929.93 |
Preferred shares | R$ 1764.78 | R$ 1246.77 | R$ 1022.92 |
Net Profit attributable - Basic (Brazilian Reais) | |||
Earnings per share (Brazilian Reais) | |||
Common shares | R$ 6108349 | R$ 4332026 | R$ 3560288 |
Preferred shares | R$ 6474128 | R$ 4592038 | R$ 3774275 |
Weighted average shares outstanding (in thousands) - Basic | |||
Earnings per share (Brazilian Reais) | |||
Common shares | 3,807,386 | 3,822,057 | 3,828,555 |
Preferred shares | 3,668,527 | 3,683,145 | 3,689,696 |
Earnings per share (Details 2)
Earnings per share (Details 2) - BRL (R$) R$ / shares in Units, shares in Thousands, R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Diluted earnings per share | ||||
Profit attributable to the Parent | R$ 12582477 | R$ 8924064 | R$ 7334563 | |
Diluted earnings per 1,000 shares (Brazilian Reais) | ||||
Earnings per share (Brazilian Reais) | ||||
Common shares | R$ 1604.34 | R$ 1132.44 | R$ 929.03 | |
Preferred shares | R$ 1764.78 | R$ 1245.69 | R$ 1021.93 | |
Net Profit attributable - Diluted (Brazilian Reais) | ||||
Earnings per share (Brazilian Reais) | ||||
Common shares | R$ 6108349 | R$ 4331955 | R$ 3560222 | |
Preferred shares | R$ 6474128 | R$ 4592109 | R$ 3774341 | |
Weighted average shares outstanding (in thousands) - Diluted | ||||
Earnings per share (Brazilian Reais) | ||||
Common shares | 3,807,386 | 3,825,313 | 3,832,211 | |
Incremental shares from stock options granted under Stock Option Plan - Units | [1] | R$ 0 | R$ 3257 | R$ 3656 |
Preferred shares | 3,668,527 | 3,686,401 | 3,693,352 | |
Incremental shares from stock options granted under Stock Option Plan - Units | [1] | R$ 3257 | R$ 3656 | |
[1] | The exercise period of the SOP 2013 Long Term Incentive Plan purchase option ended in June 2018. The Bank does not have stock-based compensation plans in force (Note 40) and consequently has no anti-dilution items. |
Fair value of financial asset_3
Fair value of financial assets and liabilities (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Fair value of financial assets and liabilities | |||||
Financial Assets Measured At Fair Value Through Profit Or Loss | R$ 43711800 | R$ 0 | R$ 0 | ||
Debt instruments | 3,171,746 | 0 | 0 | ||
Equity instruments | 40,540,054 | 0 | 0 | ||
Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading | 68,852,314 | 0 | 0 | ||
Debt instruments | 50,066,469 | 0 | 0 | ||
Equity instruments | 766,333 | 0 | 0 | ||
Derivatives | 18,019,512 | 0 | 0 | ||
Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss | 917,477 | 0 | 0 | ||
Loans and advances to customers | 619,180 | 0 | 0 | ||
Equity instruments | 298,297 | 0 | 0 | ||
Financial Assets Measured At Fair Value Through Other Comprehensive Income | 85,436,677 | 0 | 0 | ||
Debt instruments | 85,395,691 | 0 | 0 | ||
Equity instruments | 40,986 | 0 | 0 | ||
Financial assets held for trading | 52,439,576 | 84,873,663 | |||
Debt instruments | 0 | 34,879,681 | 59,994,946 | ||
Equity instruments | 0 | 489,770 | 398,461 | ||
Derivatives | 0 | 17,070,125 | 24,480,256 | ||
Financial assets designated at fair value through profit or loss | 0 | 1,692,057 | 1,711,204 | ||
Debt instruments | 0 | 1,658,689 | 1,668,749 | ||
Equity instruments | 0 | 33,368 | 42,455 | ||
Financial assets - available-for-sale | 0 | 85,823,384 | 57,815,045 | ||
Debt instruments | 0 | 84,716,747 | 55,829,572 | ||
Equity instruments | 0 | 1,106,637 | 1,985,473 | ||
Hedging derivatives (assets) | 343,934 | 192,763 | 222,717 | ||
Financial Liabilities Measured At Fair Value Through Profit Or Loss | 50,938,992 | 0 | 0 | ||
Derivatives | 18,243,315 | 0 | 0 | ||
Short positions | 32,695,677 | 0 | 0 | ||
Financial liabilities held for trading | 0 | 49,322,546 | 51,619,869 | ||
Derivatives | 0 | 16,514,154 | 19,925,600 | ||
Short positions | 0 | 32,808,392 | 31,694,269 | ||
Hedging derivatives (liabilities) | 223,520 | 163,332 | 311,015 | ||
Level 1 | |||||
Fair value of financial assets and liabilities | |||||
Financial Assets Measured At Fair Value Through Profit Or Loss | [1] | 2,660,859 | |||
Debt instruments | [1] | 2,660,859 | |||
Equity instruments | [1] | 0 | |||
Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading | [1] | 49,855,112 | |||
Debt instruments | [1] | 49,094,924 | |||
Equity instruments | [1] | 757,843 | |||
Derivatives | [1] | 2,345 | |||
Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss | [1] | 142,732 | |||
Loans and advances to customers | [1] | 0 | |||
Equity instruments | [1] | 142,732 | |||
Financial Assets Measured At Fair Value Through Other Comprehensive Income | [1] | 83,283,924 | |||
Debt instruments | [1] | 83,253,117 | |||
Equity instruments | [1] | 30,807 | |||
Financial assets held for trading | 34,380,542 | 59,410,908 | |||
Debt instruments | 33,891,360 | 59,034,363 | |||
Equity instruments | 489,182 | 376,545 | |||
Derivatives | 0 | 0 | |||
Financial assets designated at fair value through profit or loss | 1,593,951 | 1,597,660 | |||
Debt instruments | 1,593,951 | 1,592,714 | |||
Equity instruments | 0 | 4,946 | |||
Financial assets - available-for-sale | 79,301,016 | 51,160,044 | |||
Debt instruments | 78,335,629 | 50,172,609 | |||
Equity instruments | 965,387 | 987,435 | |||
Hedging derivatives (assets) | 0 | [1] | 0 | 0 | |
Financial Liabilities Measured At Fair Value Through Profit Or Loss | [1] | 32,697,510 | |||
Derivatives | [1] | 1,833 | |||
Short positions | [1] | 32,695,677 | |||
Financial liabilities held for trading | 32,808,392 | 31,694,269 | |||
Derivatives | 0 | 0 | |||
Short positions | 32,808,392 | 31,694,269 | |||
Hedging derivatives (liabilities) | 0 | [1] | 0 | 0 | |
Level 2 | |||||
Fair value of financial assets and liabilities | |||||
Financial Assets Measured At Fair Value Through Profit Or Loss | 40,540,054 | ||||
Debt instruments | 0 | ||||
Equity instruments | 40,540,054 | ||||
Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading | 17,626,932 | ||||
Debt instruments | 432,910 | ||||
Equity instruments | 8,490 | ||||
Derivatives | 17,185,532 | ||||
Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss | 619,798 | ||||
Loans and advances to customers | 619,180 | ||||
Equity instruments | 618 | ||||
Financial Assets Measured At Fair Value Through Other Comprehensive Income | 1,442,797 | ||||
Debt instruments | 1,442,797 | ||||
Equity instruments | 0 | ||||
Financial assets held for trading | 18,059,034 | 25,462,755 | |||
Debt instruments | 988,321 | 960,583 | |||
Equity instruments | 588 | 21,916 | |||
Derivatives | 17,070,125 | 24,480,256 | |||
Financial assets designated at fair value through profit or loss | 64,738 | 76,035 | |||
Debt instruments | 64,738 | 76,035 | |||
Equity instruments | 0 | 0 | |||
Financial assets - available-for-sale | 6,382,225 | 5,703,389 | |||
Debt instruments | 6,381,118 | 5,656,963 | |||
Equity instruments | 1,107 | 46,426 | |||
Hedging derivatives (assets) | 343,934 | 192,763 | 222,717 | ||
Financial Liabilities Measured At Fair Value Through Profit Or Loss | 17,600,024 | ||||
Derivatives | 17,600,024 | ||||
Short positions | 0 | ||||
Financial liabilities held for trading | 16,514,154 | 19,925,600 | |||
Derivatives | 16,514,154 | 19,925,600 | |||
Short positions | 0 | 0 | |||
Hedging derivatives (liabilities) | 223,520 | 163,332 | 311,015 | ||
Level 3 | |||||
Fair value of financial assets and liabilities | |||||
Financial Assets Measured At Fair Value Through Profit Or Loss | 510,887 | ||||
Debt instruments | 510,887 | ||||
Equity instruments | 0 | ||||
Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading | 1,370,270 | ||||
Debt instruments | 538,635 | ||||
Equity instruments | 0 | ||||
Derivatives | 831,635 | ||||
Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss | 154,947 | ||||
Loans and advances to customers | 0 | ||||
Equity instruments | 154,947 | ||||
Financial Assets Measured At Fair Value Through Other Comprehensive Income | 709,956 | ||||
Debt instruments | 699,777 | ||||
Equity instruments | 10,179 | ||||
Financial assets held for trading | 0 | 0 | |||
Debt instruments | 0 | 0 | |||
Equity instruments | 0 | 0 | |||
Derivatives | 0 | 0 | |||
Financial assets designated at fair value through profit or loss | 33,368 | 37,509 | |||
Debt instruments | 0 | 0 | |||
Equity instruments | 33,368 | 37,509 | |||
Financial assets - available-for-sale | 140,143 | 951,612 | |||
Debt instruments | 0 | 0 | |||
Equity instruments | 140,143 | 951,612 | |||
Hedging derivatives (assets) | 0 | 0 | 0 | ||
Financial Liabilities Measured At Fair Value Through Profit Or Loss | 641,458 | ||||
Derivatives | 641,458 | ||||
Short positions | 0 | ||||
Financial liabilities held for trading | 0 | 0 | |||
Derivatives | 0 | 0 | |||
Short positions | 0 | 0 | |||
Hedging derivatives (liabilities) | R$ 0 | R$ 0 | R$ 0 | ||
[1] | There was no transfer between levels 1 and 2. |
Fair value of financial asset_4
Fair value of financial assets and liabilities (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Gains/ losses (Realized-Not Realized) | ||||
Financial assets and liabilities classified as Level 3 in the fair value | ||||
Financial Assets Measured At Fair Value Through Profit Or Loss | R$ 60887 | |||
Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading | (181,355) | |||
Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss | (7,280) | |||
Financial Assets Measured At Fair Value Through Other Comprehensive Income | 47,773 | |||
Financial Liabilities Measured At Fair Value Through Profit Or Loss | 115,212 | |||
Financial assets held for trading | R$ 0 | R$ 0 | ||
Financial assets designated at fair value through profit or loss | (2,555) | 2,806 | ||
Financial assets - available-for-sale | 18,474 | (60,934) | ||
Transfers in and/ or out of Level 3 | ||||
Financial assets and liabilities classified as Level 3 in the fair value | ||||
Financial Assets Measured At Fair Value Through Profit Or Loss | 0 | |||
Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading | 1,264,576 | |||
Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss | 0 | |||
Financial Assets Measured At Fair Value Through Other Comprehensive Income | 645,708 | |||
Financial Liabilities Measured At Fair Value Through Profit Or Loss | 710,219 | |||
Financial assets held for trading | 0 | 0 | ||
Financial assets designated at fair value through profit or loss | 0 | (14,345) | ||
Financial assets - available-for-sale | 0 | (3,085) | ||
Additions / Settled | ||||
Financial assets and liabilities classified as Level 3 in the fair value | ||||
Financial Assets Measured At Fair Value Through Profit Or Loss | 445,991 | |||
Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading | 246,051 | |||
Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss | 0 | |||
Financial Assets Measured At Fair Value Through Other Comprehensive Income | 0 | |||
Financial Liabilities Measured At Fair Value Through Profit Or Loss | (183,973) | |||
Impact of IFRS 9 | ||||
Financial assets and liabilities classified as Level 3 in the fair value | ||||
Financial Assets Measured At Fair Value Through Profit Or Loss | (29,359) | |||
Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading | 40,998 | |||
Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss | 162,227 | |||
Financial Assets Measured At Fair Value Through Other Comprehensive Income | (123,668) | |||
Financial Liabilities Measured At Fair Value Through Profit Or Loss | 0 | |||
Fair value | ||||
Financial assets and liabilities classified as Level 3 in the fair value | ||||
Financial Assets Measured At Fair Value Through Profit Or Loss | 510,887 | |||
Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading | 1,370,270 | |||
Non-Trading Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss | 154,947 | |||
Financial Assets Measured At Fair Value Through Other Comprehensive Income | 709,956 | |||
Financial Liabilities Measured At Fair Value Through Profit Or Loss | R$ 641458 | |||
Financial assets held for trading | 0 | 0 | R$ 0 | |
Financial assets designated at fair value through profit or loss | 31,782 | 37,509 | 573,664 | |
Financial assets - available-for-sale | (689,800) | 951,612 | R$ 857817 | |
Additions | ||||
Financial assets and liabilities classified as Level 3 in the fair value | ||||
Financial assets held for trading | 0 | 0 | ||
Financial assets designated at fair value through profit or loss | (1,586) | 111 | ||
Financial assets - available-for-sale | (829,943) | 461,185 | ||
Settled | ||||
Financial assets and liabilities classified as Level 3 in the fair value | ||||
Financial assets held for trading | 0 | 0 | ||
Financial assets designated at fair value through profit or loss | (1,586) | (524,727) | ||
Financial assets - available-for-sale | R$ 829943 | R$ 303371 |
Fair value of financial asset_5
Fair value of financial assets and liabilities (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Level 1 | |||
Financial assets measured at other than fair value | |||
Money market investments - Brazilian Central Bank (note 4) | R$ 0 | R$ 0 | R$ 0 |
Investments Held-to-Maturity (note 6) | 0 | 7,251,246 | 6,942,173 |
Financial Assets Measured At Amortized Cost / Loans and receivables: | |||
Loans and amounts due from credit institutions (note 5) | 0 | 0 | 0 |
Loans and advances to customers (note 9) | 0 | 0 | 0 |
Loans and receivables - Debt instruments (note 6) | 0 | 0 | 0 |
Financial Assets Measured At Amortized Cost - Debt instruments (note 6) | 9,766,162 | ||
Total | 9,766,162 | 7,251,246 | 6,942,173 |
Level 2 | |||
Financial assets measured at other than fair value | |||
Money market investments - Brazilian Central Bank (note 4) | 15,269,809 | 33,914,021 | 46,341,971 |
Investments Held-to-Maturity (note 6) | 0 | 3,335,871 | 3,613,264 |
Financial Assets Measured At Amortized Cost / Loans and receivables: | |||
Loans and amounts due from credit institutions (note 5) | 79,607,197 | 65,209,902 | 65,711,001 |
Loans and advances to customers (note 9) | 0 | 0 | 0 |
Loans and receivables - Debt instruments (note 6) | 0 | 17,127,511 | 16,003,885 |
Financial Assets Measured At Amortized Cost - Debt instruments (note 6) | 29,161,194 | ||
Total | 124,038,200 | 119,587,305 | 72,530,121 |
Level 3 | |||
Financial assets measured at other than fair value | |||
Money market investments - Brazilian Central Bank (note 4) | 0 | 0 | 0 |
Investments Held-to-Maturity (note 6) | 0 | 0 | 0 |
Financial Assets Measured At Amortized Cost / Loans and receivables: | |||
Loans and amounts due from credit institutions (note 5) | 0 | 0 | 0 |
Loans and advances to customers (note 9) | 303,495,240 | 275,647,324 | 253,860,027 |
Loans and receivables - Debt instruments (note 6) | 0 | 0 | 0 |
Financial Assets Measured At Amortized Cost - Debt instruments (note 6) | 0 | ||
Total | 303,495,240 | 275,647,324 | 253,860,027 |
Carrying Amount | |||
Financial assets measured at other than fair value | |||
Money market investments - Brazilian Central Bank (note 4) | 15,228,491 | 33,831,521 | 46,371,814 |
Investments Held-to-Maturity (note 6) | 0 | 10,214,454 | 10,048,761 |
Financial Assets Measured At Amortized Cost / Loans and receivables: | |||
Loans and amounts due from credit institutions (note 5) | 79,607,001 | 65,209,902 | 65,711,001 |
Loans and advances to customers (note 9) | 301,702,207 | 272,420,157 | 252,002,774 |
Loans and receivables - Debt instruments (note 6) | 0 | 17,616,515 | 16,283,259 |
Financial Assets Measured At Amortized Cost - Debt instruments (note 6) | 36,799,509 | ||
Total | 433,337,208 | 399,292,549 | 390,417,609 |
Fair Value | |||
Financial assets measured at other than fair value | |||
Money market investments - Brazilian Central Bank (note 4) | 15,269,809 | 33,914,021 | 46,341,971 |
Investments Held-to-Maturity (note 6) | 0 | 10,587,117 | 10,555,437 |
Financial Assets Measured At Amortized Cost / Loans and receivables: | |||
Loans and amounts due from credit institutions (note 5) | 79,607,197 | 65,209,902 | 65,711,001 |
Loans and advances to customers (note 9) | 303,495,240 | 275,647,324 | 253,860,027 |
Loans and receivables - Debt instruments (note 6) | 0 | 17,127,511 | 16,003,885 |
Financial Assets Measured At Amortized Cost - Debt instruments (note 6) | 38,927,356 | ||
Total | R$ 437299602 | R$ 402485875 | R$ 392472321 |
Fair value of financial asset_6
Fair value of financial assets and liabilities (Details 4) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying Amount | |||
Financial liabilities at amortized cost: | |||
Deposits from Bacen and credit institutions (note 16) | R$ 98716735 | R$ 79068604 | R$ 78319960 |
Customer deposits (note 17) | 285,344,281 | 258,482,156 | 231,079,303 |
Marketable debt securities (note 18) | 74,626,232 | 70,247,012 | 99,842,955 |
Subordinated liabilities (note 19) | 9,885,607 | 519,230 | 466,246 |
Debt Instruments Eligible to Compose Capital (note 20) | 9,779,944 | 8,436,901 | 8,311,918 |
Other financial liabilities (note 21) | 49,782,780 | 44,260,735 | 36,879,099 |
Total | 528,135,579 | 461,014,638 | 454,899,481 |
Fair Value | |||
Financial liabilities at amortized cost: | |||
Deposits from Bacen and credit institutions (note 16) | 98,713,988 | 79,068,564 | 78,323,271 |
Customer deposits (note 17) | 285,417,696 | 258,576,177 | 231,125,526 |
Marketable debt securities (note 18) | 74,783,289 | 70,245,820 | 99,671,288 |
Subordinated liabilities (note 19) | 9,853,157 | 528,799 | 452,439 |
Debt Instruments Eligible to Compose Capital (note 20) | 9,782,373 | 8,436,901 | 8,311,918 |
Other financial liabilities (note 21) | 49,782,780 | 43,003,735 | 35,622,099 |
Total | 528,333,283 | 459,859,996 | 453,506,541 |
Level 1 | |||
Financial liabilities at amortized cost: | |||
Deposits from Bacen and credit institutions (note 16) | 0 | 0 | 0 |
Customer deposits (note 17) | 0 | 0 | 0 |
Marketable debt securities (note 18) | 0 | 0 | 0 |
Subordinated liabilities (note 19) | 0 | 0 | 0 |
Debt Instruments Eligible to Compose Capital (note 20) | 0 | 0 | 0 |
Other financial liabilities (note 21) | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Level 2 | |||
Financial liabilities at amortized cost: | |||
Deposits from Bacen and credit institutions (note 16) | 98,713,988 | 0 | 0 |
Customer deposits (note 17) | 285,417,696 | 0 | 0 |
Marketable debt securities (note 18) | 4,599,204 | 2,000,552 | 7,321,870 |
Subordinated liabilities (note 19) | 9,853,157 | 0 | 0 |
Debt Instruments Eligible to Compose Capital (note 20) | 9,782,373 | 8,436,901 | 8,311,918 |
Other financial liabilities (note 21) | 0 | 0 | 0 |
Total | 408,366,418 | 10,437,453 | 15,633,788 |
Level 3 | |||
Financial liabilities at amortized cost: | |||
Deposits from Bacen and credit institutions (note 16) | 0 | 79,068,564 | 78,323,271 |
Customer deposits (note 17) | 0 | 258,576,177 | 231,125,526 |
Marketable debt securities (note 18) | 70,184,085 | 68,245,268 | 92,349,418 |
Subordinated liabilities (note 19) | 0 | 528,799 | 452,439 |
Debt Instruments Eligible to Compose Capital (note 20) | 0 | 0 | 0 |
Other financial liabilities (note 21) | 49,782,780 | 43,003,735 | 35,622,099 |
Total | R$ 119966865 | R$ 449422543 | R$ 437872753 |
Operational Ratios (Details 1)
Operational Ratios (Details 1) R$ in Thousands | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | Dec. 31, 2016BRL (R$) | |
Financial Conglomerate [Abstract] | ||||
Tier I Regulatory Capital | [1] | R$ 61476715 | R$ 56386001 | R$ 56264021 |
Principal Capital | [1] | 56,581,518 | 52,196,893 | 52,136,837 |
Supplementary capital | [1] | 4,895,197 | 4,189,108 | 4,127,184 |
Tier II Regulatory Capital | [1] | 4,887,175 | 4,250,447 | 4,280,864 |
Regulatory Capital (Tier I and II) | [1] | 66,363,890 | 60,636,448 | 60,544,885 |
Required Regulatory Capital | [1] | 440,562,919 | 383,132,693 | 36,669,570 |
Portion of Credit Risk | [1] | 358,955,592 | 324,696,458 | 31,309,944 |
Market Risk Portions | [1],[2] | 39,231,773 | 25,857,109 | 2,388,626 |
Operational Risk Portion | [1],[3] | R$ 42375554 | R$ 32579126 | R$ 2971000 |
Basel I Ratio | [1] | 13.95 | 14.72 | 15.15 |
Basel Principal Capital | [1] | 12.84 | 13.62 | 14.04 |
Basel | [1] | 15.06 | 15.83 | 16.30 |
[1] | Amounts calculated based on the consolidated information provided by the Consolidated Prudential. | |||
[2] | To calculate the capital allocation for credit risk were considered modifications and inclusions of Bacen Circular 3,714 of August 20, 2014, Bacen Circular 3,770 of October 29,2015, which amending Circular 3,644 of March 4, 2013. | |||
[3] | Includes portions for market risk exposures subject to variations in rates of foreign currency coupons (PJUR2), price indexes (PJUR3) and interest rate (PJUR1/PJUR4), the price of commodities (PCOM), the price of shares classified as trading portfolios (PACS), and portions for gold exposure and foreign currency transactions subject to foreign exchange (PCAM). |
Interest and similar income (De
Interest and similar income (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue [abstract] | |||
Cash and balances with the Brazilian Central Bank | R$ 5095828 | R$ 5953765 | R$ 7315570 |
Loans and advances - Credit institutions | 2,977,670 | 5,107,355 | 7,472,729 |
Loans and advances - Customers | 46,471,507 | 44,507,217 | 43,977,981 |
Debt instruments | 13,629,167 | 13,456,802 | 14,783,164 |
Other interest | 2,304,221 | 2,393,210 | 3,596,633 |
Total | R$ 70478393 | R$ 71418349 | R$ 77146077 |
Interest expense and similar _3
Interest expense and similar charges (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Interest expense and similar charges [Abstract] | ||||
Credit institutions deposits | R$ 5367471 | R$ 3782781 | R$ 3369931 | |
Debt securities issued | 13,576,866 | 19,490,807 | 25,693,236 | |
Marketable debt securities and subordinated liabilities: | ||||
Marketable debt securities (note 18) | 4,606,949 | 7,901,199 | 12,212,922 | |
Subordinated liabilities (note 19) | 25,336 | 52,984 | 731,594 | |
Debt Instruments Eligible to Compose Capital (note 20) | 604,216 | 495,188 | 501,748 | |
Pension Plans (note 22.b) | 343,137 | 292,628 | 290,920 | |
Other interest | [1] | 4,033,076 | 4,456,273 | 3,759,233 |
Total | R$ 28557051 | R$ 36471860 | R$ 46559584 | |
[1] | In December 31, 2016, includes R$2,057 million related to the reversal of legal obligations. |
Income from equity instrument_2
Income from equity instruments (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity Instruments Classified As [Abstract] | |||
Financial assets held for trading | R$ 0 | R$ 18458 | R$ 21489 |
Financial Assets Measured At Fair Value Through Profit Or Loss | 27,047 | 0 | 0 |
Financial assets - available-for-sale | 0 | 64,662 | 237,056 |
Financial Assets Measured At Fair Value Through Other Comprehensive Income | 5,576 | 0 | 0 |
Total | R$ 32623 | R$ 83120 | R$ 258545 |
Fee and commission income (Deta
Fee and commission income (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Collection And Payment Services [Abstract] | |||
Bills | R$ 1070258 | R$ 970293 | R$ 789996 |
Demand accounts | 2,311,925 | 2,156,384 | 1,786,175 |
Cards (Credit and Debit) and Acquiring Services | 5,854,503 | 4,985,306 | 4,090,766 |
Checks and other | 169,872 | 172,718 | 169,100 |
Orders | 622,405 | 471,763 | 364,102 |
Total | 10,028,962 | 8,756,464 | 7,200,139 |
Marketing of non-Banking financial products: | |||
Investment funds | 717,924 | 819,748 | 1,014,401 |
Insurance | 2,975,661 | 2,414,478 | 2,114,316 |
Capitalization | 402,859 | 363,516 | 325,531 |
Total | 4,096,444 | 3,597,742 | 3,454,248 |
Securities services: | |||
Securities underwriting and placement | 448,914 | 513,727 | 357,513 |
Securities trading | 137,617 | 114,015 | 115,334 |
Administration and custody | 41,794 | 191,987 | 65,667 |
Asset management | 2,173 | 2,353 | 1,863 |
Total | 630,497 | 822,082 | 540,377 |
Other: | |||
Foreign exchange | 934,801 | 742,676 | 722,912 |
Financial guarantees | 708,819 | 672,801 | 634,375 |
Other fees and commissions | 1,328,928 | 1,223,778 | 996,430 |
Total | 2,972,549 | 2,639,255 | 2,353,717 |
Total | R$ 17728452 | R$ 15815543 | R$ 13548481 |
Fee and commission expense (Det
Fee and commission expense (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Fee and commission expense [Abstract] | ||||
Commissions assigned to third parties | [1] | R$ 2364119 | R$ 1975379 | R$ 1620812 |
Other fees and commissions | 1,232,174 | 1,118,296 | 950,073 | |
Total | R$ 3596293 | R$ 3093675 | R$ 2570885 | |
[1] | Composed, mainly, by credit cards. |
Gains or losses on financial _3
Gains or losses on financial assets and liabilities (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Gains (losses) on financial instruments [abstract] | ||||
Financial Assets Held For Trading | [1] | R$ 0 | R$ 1174111 | R$ 3166399 |
Financial Assets Measured At Fair Value Through Profit Or Loss | (138,673) | 0 | 0 | |
Financial Assets Measured At Fair Value Through Profit Or Loss Held For Trading | [1] | (2,764,859) | 0 | 0 |
Non-Tranding Financial Assets Mandatorily Measured At Fair Value Through Profit Or Loss | 61,239 | 0 | 0 | |
Other Financial Assets At Fair Value Through Profit Or Loss | [2] | 0 | 30,694 | 82,638 |
Financial Assets Not Measured At Fair Value Through Profit Or Loss | (138,104) | (122,115) | (115,202) | |
Financial Assets available-for-sale | ||||
Debt instruments | (111,750) | (156,802) | (108,318) | |
Equity instruments | (26,354) | 34,687 | (6,884) | |
Financial Assets Measured At Fair Value Through Other Comprehensive Income | ||||
Gains or losses from hedge accounting, net | 197,595 | (113,600) | (117,679) | |
Total | R$ 2782802 | R$ 969090 | R$ 3016156 | |
[1] | Includes the exchange hedge of the Bank's interest in Cayman (note 24). | |||
[2] | Includes the net gain arising from transactions involving debt securities, equity instruments and derivatives included in this portfolio, since the Bank manages its risk in these instruments on a global basis. |
Exchange differences (net) (Det
Exchange differences (net) (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Exchange differences (net) [Abstract] | |||
Revenue with Exchange variations | R$ 12752765 | R$ 24008382 | R$ 16634809 |
Expenses with Exchange Variations | (15,559,237) | (23,403,326) | (12,059,995) |
Total | R$ 2806471 | R$ 605056 | R$ 4574814 |
Other operating income and ex_3
Other operating income and expenses (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Other Operating Expense Net [Abstract] | ||||
Other operating income | [1] | R$ 556715 | R$ 896279 | R$ 690310 |
Other operating expense | [1] | (1,281,764) | (1,259,338) | (1,067,560) |
Contributions to the Guarantee of Credit Fund - FGC | (330,801) | (308,954) | (247,321) | |
Total | R$ 1055850 | R$ 672013 | R$ 624571 | |
[1] | On December 31, 2018, it consists mainly of Data Processing Expenses in the balance of R$ 67,724 (2017 - 73,664 and 2016 - R$ 61,186), Services Expenses in balance of R$ 26,852 (2017 - revenue of R$ 87,199 and 2016 - R$ 74,322), Indemnity Funds for Benefit - FGB R$ 34,996 (2017 - 5,334 and 2016 - R$ 172,699), Interest on Capital Income R$ 38,006 (2017 - 20,826 and 2016 - R$ 305) and Recovery of Charges and Expenses R$ 92,408 (2017 - 89,409 and 2016 - 72,360). |
Personnel expenses (Details 1)
Personnel expenses (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Classes of employee benefits expense [abstract] | |||
Wages and salaries | R$ 5812688 | R$ 5713702 | R$ 5377284 |
Social security costs | 1,404,537 | 1,381,229 | 1,273,486 |
Benefits | 1,387,078 | 1,309,314 | 1,277,781 |
Defined benefit pension plans (note 22) | 8,939 | 20,081 | 24,480 |
Contributions to defined contribution pension plans | 131,388 | 87,099 | 86,576 |
Share-based compensation | 58,050 | 87,293 | 86,963 |
Training | 62,756 | 58,338 | 62,518 |
Other personnel expenses | 340,571 | 280,222 | 188,177 |
Total | R$ 9206007 | R$ 8937278 | R$ 8377265 |
Personnel expenses (Details 2)
Personnel expenses (Details 2) | 12 Months Ended | |
Dec. 31, 2013 | [1] | |
Sop 2013 [Abstract] | ||
Total Shareholder Return (TSR) rank | % of Exercisable Shares | |
1st | 100.00% | |
2nd | 75.00% | |
3th | 50.00% | |
[1] | The percentage of shares determined at the position of TSR is subject to a penalty according to the implementation of the RoRWA. |
Personnel expenses (Details 3)
Personnel expenses (Details 3) | 12 Months Ended |
Dec. 31, 2013BRL (R$) | |
Sop 2013 [Abstract] | |
Method of Assessment | Black&Scholes |
Volatility | 40.00% |
Rate of Dividends | 3.00% |
Vesting Period | 3 years |
Average Exercise Time | 5 years |
Risk-Free Rate | 11.80% |
Probability of Occurrence | 60.27% |
Fair Value of the Option Shares | R$ 5.96 |
Personnel expenses (Details 4)
Personnel expenses (Details 4) - BRL (R$) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Final Balance | |||
Number of Units | R$ 0 | R$ 1117011 | R$ 1986258 |
Exercised options (SOP - 2013) | |||
Final Balance | |||
Number of Units | (732,169) | (869,247) | |
Exercise Price in Reais | R$ 12.84 | R$ 12.84 | |
Year Granted | 2013 | 2013 | |
Employees | Executives | Executives | |
Date of Commencement of Fiscal Year | 06/30/16 | 06/30/16 | |
Expiration Date of Fiscal Year | 06/30/18 | 06/30/18 | |
Cancelled options (SOP - 2013) | |||
Final Balance | |||
Number of Units | R$ 384842 | ||
Exercise Price in Reais | R$ 12.84 | ||
Year Granted | 2013 | ||
Employees | Executives | ||
Date of Commencement of Fiscal Year | 06/30/16 | ||
Expiration Date of Fiscal Year | 06/30/18 |
Personnel expenses (Details 5)
Personnel expenses (Details 5) | 12 Months Ended |
Dec. 31, 2018 | |
2 years | |
Long Term Incentive Global CRDIV - Grant 2014 | |
Future income Dividend | 11.10% |
Expected Volatility | 32.70% |
Volatility comparator | 12% - 52% |
Risk-free interest rate | 1.70% |
Correlation | 0.55% |
3 years | |
Long Term Incentive Global CRDIV - Grant 2014 | |
Future income Dividend | 10.80% |
Expected Volatility | 34.70% |
Volatility comparator | 16% - 56% |
Risk-free interest rate | 2.10% |
Correlation | 0.55% |
4 years | |
Long Term Incentive Global CRDIV - Grant 2014 | |
Future income Dividend | 9.50% |
Expected Volatility | 36.90% |
Volatility comparator | 16% - 52% |
Risk-free interest rate | 2.50% |
Correlation | 0.55% |
Personnel expenses (Details 6)
Personnel expenses (Details 6) | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
Balance Plans | |
Number of Shares | R$ 1775049 |
1st Long Term Incentive Global CRDIV - Grant 2014 | |
Balance Plans | |
Number of Shares | R$ 1613057 |
Granted Year | 2014 |
Employees | Executives |
Data of Commencement of the Fiscal Year | Jan-14 |
Data of Expiry of Fiscal Year | Dec-17 |
Cancelled Shares (Grantec - 2014) | |
Balance Plans | |
Number of Shares | R$ 1613057 |
Granted Year | 2014 |
Employees | Executives |
Data of Commencement of the Fiscal Year | Jan-14 |
Data of Expiry of Fiscal Year | Dec-17 |
2nd Long -Term Incentive Global Plan CRDIV - Grant 2015 | |
Balance Plans | |
Number of Shares | R$ 1775049 |
Granted Year | 2016 |
Employees | Executives |
Data of Commencement of the Fiscal Year | Jan-15 |
Data of Expiry of Fiscal Year | Dec-17 |
Personnel expenses (Details Tex
Personnel expenses (Details Text) - BRL (R$) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Average Value Of Shares Sanb [Abstract] | |||
Average value of shares SANB11 | R$ 36.25 | R$ 28.47 | R$ 19.94 |
Pro rata expenses | |||
SOP | R$ 0 | R$ 0 | R$ 15789000 |
Long-term incentive plan - private ultra high | 0 | 2,935,000 | 0 |
Long-term incentive global CRDIV | R$ 5624000 | R$ 4797000 | R$ 0 |
Long-term incentive global CRDIV | |||
Target price for the executives | 19.2893 | 19.2893 | 0 |
Variable compensation plan | |||
Variable compensation plan - provision of the deferral - collective identified | R$ 50896000 | R$ 81838000 | R$ 52500000 |
Variable compensation plan - provision of the deferral - collective unidentified | R$ 74871000 | R$ 124926000 | R$ 79794000 |
Other general administrative _3
Other general administrative expenses (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Other general administrative expenses [Abstract] | ||||
Property, fixtures and supplies | R$ 1330549 | R$ 1284490 | R$ 1278556 | |
Technology and systems | 1,786,416 | 1,364,720 | 1,246,809 | |
Advertising | 621,645 | 617,563 | 486,772 | |
Communications | 457,323 | 593,272 | 488,799 | |
Per diems and travel expenses | 127,277 | 106,956 | 133,123 | |
Taxes other than income tax | 88,977 | 122,570 | 84,932 | |
Surveillance and cash courier services | 617,129 | 630,466 | 622,362 | |
Insurance premiums | 29,434 | 27,289 | 21,308 | |
Specialized and technical services | 2,089,614 | 1,901,056 | 1,744,726 | |
Technical reports | 359,468 | 370,546 | 437,683 | |
Others specialized and technical services | 1,730,146 | 1,530,510 | 1,307,043 | |
Other administrative expenses | [1] | 437,767 | 534,935 | 435,758 |
Total | R$ 7586131 | R$ 7183317 | R$ 6543145 | |
[1] | In December 31, 2018, includes mainly Data Processing Expenses in the balance of R$ 67.724 (2017 - 73.664 and 2016 - R $ 61.186), Service Expenses in the balance of R$ 26.852 (2017 - revenue of R$ 87.199 and 2016 - R$ 74.322), Expenses with Benefit Guarantor Fund - FGB R$ 34.996 (2017 - R$ 5.334 and 2016 - R$ 172.699), Interest on Own Capital R$ 38,006 (2017 - R$ 20.826 and 2016 - R$ 305) and Recovery of Charges and Expenses R $ 92.408 (2017 - R$ 89.409 and 2016 - R$ 72.360). |
Other general administrative _4
Other general administrative expenses (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Technical Reports [Abstract] | ||||
Audit of the annual financial statements of the companies audited by external audit (constant scope of consolidation) | [1] | R$ 19.9 | R$ 17.5 | R$ 9.2 |
Audit Related | 0.5 | 3.9 | 0.1 | |
Others | 0.1 | 1.3 | 0.7 | |
Total | R$ 20.5 | R$ 22.7 | R$ 10.0 | |
[1] | In 2017, includes R$2.3 million referring to auditing work for the 2016 fiscal year. |
Other general administrative _5
Other general administrative expenses (Details Text) - BRL (R$) R$ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Other Information [Abstract] | |||
Approximate value of taxes (audit fees) | R$ 2.9 | R$ 3.7 | R$ 1.8 |
Services provided by other audit firms | R$ 1.3 | R$ 13.2 | R$ 4.9 |
Gains or losses on non financ_3
Gains or losses on non financial assets and investments, net (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disposal Of Assets Not Classified As Noncurrent Assets Held For Sale [Abstract] | ||||
Gains | R$ 11627 | R$ 1798 | R$ 12584 | |
Tangible and intangible assets | 11,627 | 1,798 | 12,575 | |
Investments | 0 | 0 | 9 | |
Losses | (37,103) | (66,100) | (8,768) | |
Tangible and intangible assets | (37,103) | (13,719) | (7,547) | |
Investments | [1] | 0 | (52,381) | (1,221) |
Total | R$ 25476 | R$ 64302 | R$ 3816 | |
[1] | In 2017, includes the amount of R$41,999 related to the sale of BW Guirapa I S.A. |
Gains (losses) on disposal an_2
Gains (losses) on disposal and expenses of non-current assets held for sale not classified as discontinued operations (Details Text) - BRL (R$) R$ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Gains (losses) on disposal and expenses of non-current assets held for sale not classified as discontinued operations [Abstract] | ||
Gains (losses) on disposal and expenses of non-current assets held for sale not classified as discontinued operations | R$ 181 | |
Income from the reversal of the provision for impairment of properties | 104 | |
Sale of assets received in the recovery of credits with clients | R$ 78 | |
Provisions for devaluations on real estate | R$ 272 |
Other disclosures (Details 1)
Other disclosures (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Contingent Liabilities [Abstract] | ||||
Guarantees and other sureties | R$ 39081803 | R$ 40729544 | R$ 32629975 | |
Financial guarantees | 27,216,418 | 37,007,057 | 24,475,507 | |
Performance guarantees | 907,856 | 486,091 | 532,232 | |
Financial letters of credit | 10,860,425 | 3,110,918 | 7,462,761 | |
Other | 97,104 | 125,478 | 159,475 | |
Other contingent exposures | 3,178,671 | 1,915,492 | 635,055 | |
Documentary Credits | 3,178,671 | 1,915,492 | 635,055 | |
Total Contingent Liabilities | 42,260,474 | 42,645,036 | 33,265,030 | |
Commitments | ||||
Loan commitments drawable by third parties | [1] | 122,652,229 | 106,913,219 | 91,251,198 |
Total Commitments | 122,652,229 | 106,913,219 | 91,251,198 | |
Total | R$ 164912704 | R$ 149558255 | R$ 124516228 | |
[1] | Includes the approved limits and unused overdraft, credit card and others. |
Other disclosures (Details 2)
Other disclosures (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Offbalance Funds Under Management [Abstract] | |||
Funds under management | R$ 1896689 | R$ 1747623 | R$ 1533620 |
Managed Funds | 200,366,261 | 188,728,634 | 158,734,032 |
Total | R$ 202262950 | R$ 190476257 | R$ 160267652 |
Other disclosures (Details 3)
Other disclosures (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets: | ||||
Cash and balances with the Brazilian Central Bank | R$ 31716345 | R$ 34124753 | R$ 26284569 | |
Debt instruments | 175,433,415 | 121,255,117 | 117,493,267 | |
Equity instruments | 1,105,616 | 1,629,775 | 2,426,389 | |
Loans and amounts due from credit institutions | 79,607,001 | 65,209,902 | 65,711,001 | |
Loans and advances to customers | 301,072,207 | 272,420,157 | 252,002,774 | |
Loans and Receivables - Debt instruments | 0 | 0 | 16,283,259 | |
Investments Held-to-Maturity | 0 | 0 | 10,048,761 | |
Derivatives | 18,363,446 | 17,262,888 | 24,702,973 | |
Total | 607,298,030 | 511,902,592 | 514,952,993 | |
Liabilities / Financial liabilities at amortized cost: | ||||
Deposits from credit institutions | [1] | 99,022,806 | 79,374,685 | 78,634,072 |
Customer deposits | [1] | 304,197,800 | 276,042,141 | 247,445,177 |
Marketable debt securities | [1] | 74,626,232 | 70,247,012 | 99,842,955 |
Subordinated liabilities | 9,885,607 | 519,230 | 466,246 | |
Debt Instruments Eligible to Compose Capital | 9,779,944 | 8,436,901 | 8,311,918 | |
Other financial liabilities | 49,782,780 | 44,260,735 | 36,879,099 | |
Financial liabilities held for trading | 50,938,992 | 0 | 0 | |
Short positions | 32,695,677 | 32,808,392 | 31,694,269 | |
Derivatives | 18,466,835 | 16,677,486 | 20,236,615 | |
Total | 649,396,673 | 528,366,582 | 523,510,351 | |
Difference (assets less liabilities) | 9,459,529 | (16,463,990) | (8,557,358) | |
On Demand | ||||
Assets: | ||||
Cash and balances with the Brazilian Central Bank | 31,323,554 | 20,642,321 | 14,683,735 | |
Debt instruments | 27,402 | 609,220 | ||
Equity instruments | 839,620 | 66,187 | 593,594 | |
Loans and amounts due from credit institutions | 57,528,022 | 38,137,344 | 39,961,892 | |
Loans and advances to customers | 0 | 31,065,824 | 30,408,851 | |
Loans and Receivables - Debt instruments | 0 | 0 | 822,874 | |
Investments Held-to-Maturity | 0 | 0 | 0 | |
Derivatives | 0 | 0 | 620,422 | |
Total | 89,718,598 | 90,520,896 | 87,091,368 | |
Liabilities / Financial liabilities at amortized cost: | ||||
Deposits from credit institutions | [1] | 1,139 | 394,396 | 770,467 |
Customer deposits | [1] | 65,241,618 | 64,512,105 | 60,919,032 |
Marketable debt securities | [1] | 0 | 0 | 0 |
Subordinated liabilities | 9,885,607 | 0 | 0 | |
Debt Instruments Eligible to Compose Capital | 0 | 0 | 0 | |
Other financial liabilities | 66,265 | 11,710,943 | 3,004,041 | |
Financial liabilities held for trading | 206,423 | |||
Short positions | 206,423 | 0 | 0 | |
Derivatives | 0 | 0 | 333,287 | |
Total | 75,401,052 | 76,617,444 | 65,026,827 | |
Difference (assets less liabilities) | 14,317,546 | 13,903,452 | 22,064,541 | |
Up to 3 Months | ||||
Assets: | ||||
Cash and balances with the Brazilian Central Bank | 392,791 | 13,482,432 | 11,600,834 | |
Debt instruments | 51,255,820 | 1,887,278 | 21,709,350 | |
Equity instruments | 34,420 | 124,304 | 48,054 | |
Loans and amounts due from credit institutions | 8,449,138 | 15,235,629 | 14,450,530 | |
Loans and advances to customers | 111,595,396 | 70,301,530 | 68,218,474 | |
Loans and Receivables - Debt instruments | 0 | 0 | 1,287,372 | |
Investments Held-to-Maturity | 0 | 0 | 0 | |
Derivatives | 13,815,791 | 426,577 | 9,209,421 | |
Total | 185,543,356 | 101,457,750 | 126,524,035 | |
Liabilities / Financial liabilities at amortized cost: | ||||
Deposits from credit institutions | [1] | 55,872,675 | 21,636,392 | 40,581,025 |
Customer deposits | [1] | 102,942,180 | 103,511,031 | 64,154,475 |
Marketable debt securities | [1] | 11,104,594 | 14,315,305 | 21,833,927 |
Subordinated liabilities | 0 | 0 | 0 | |
Debt Instruments Eligible to Compose Capital | 0 | 114,104 | 113,995 | |
Other financial liabilities | 31,566,995 | 30,985,465 | 33,559,710 | |
Financial liabilities held for trading | 7,639,956 | |||
Short positions | 0 | 0 | 743 | |
Derivatives | 7,639,956 | 769,619 | 8,052,349 | |
Total | 209,126,400 | 171,331,916 | 168,296,224 | |
Difference (assets less liabilities) | (22,963,864) | (69,874,166) | (41,772,189) | |
3 to 12 Months | ||||
Assets: | ||||
Cash and balances with the Brazilian Central Bank | 0 | 0 | 0 | |
Debt instruments | 25,903,428 | 21,978,394 | 10,136,133 | |
Equity instruments | 231,576 | 305,073 | 252,087 | |
Loans and amounts due from credit institutions | 844,658 | 182,721 | 923,308 | |
Loans and advances to customers | 75,100,836 | 61,286,539 | 60,047,442 | |
Loans and Receivables - Debt instruments | 0 | 0 | 2,960,099 | |
Investments Held-to-Maturity | 0 | 0 | 12,378 | |
Derivatives | 1,240,161 | 1,034,248 | 3,571,126 | |
Total | 103,320,659 | 84,786,975 | 77,902,573 | |
Liabilities / Financial liabilities at amortized cost: | ||||
Deposits from credit institutions | [1] | 18,564,342 | 44,696,680 | 23,315,006 |
Customer deposits | [1] | 76,987,570 | 48,339,761 | 68,505,808 |
Marketable debt securities | [1] | 26,741,036 | 35,636,549 | 56,637,880 |
Subordinated liabilities | 0 | 519,230 | 0 | |
Debt Instruments Eligible to Compose Capital | 0 | 0 | 0 | |
Other financial liabilities | 35,648 | 1,537,689 | 356 | |
Financial liabilities held for trading | 8,863,577 | |||
Short positions | 1,139,847 | 466,000 | 2,887,723 | |
Derivatives | 7,723,730 | 975,945 | 2,506,131 | |
Total | 131,192,173 | 132,171,854 | 153,852,904 | |
Difference (assets less liabilities) | (27,871,514) | (47,384,879) | (75,950,331) | |
1 to 3 Years | ||||
Assets: | ||||
Cash and balances with the Brazilian Central Bank | 0 | 0 | 0 | |
Debt instruments | 13,186,253 | 31,669,850 | 26,674,215 | |
Equity instruments | 0 | 842,090 | 486,408 | |
Loans and amounts due from credit institutions | 12,739,730 | 10,382,061 | 532,399 | |
Loans and advances to customers | 63,043,973 | 63,375,203 | 54,558,381 | |
Loans and Receivables - Debt instruments | 0 | 0 | 5,044,803 | |
Investments Held-to-Maturity | 0 | 0 | 371,621 | |
Derivatives | 1,114,446 | 9,470,073 | 3,813,687 | |
Total | 90,084,402 | 115,739,277 | 91,481,514 | |
Liabilities / Financial liabilities at amortized cost: | ||||
Deposits from credit institutions | [1] | 19,850,530 | 6,797,838 | 8,215,378 |
Customer deposits | [1] | 42,399,934 | 42,494,421 | 39,630,274 |
Marketable debt securities | [1] | 22,479,019 | 17,923,372 | 20,620,077 |
Subordinated liabilities | 0 | 0 | 466,246 | |
Debt Instruments Eligible to Compose Capital | 0 | 0 | 0 | |
Other financial liabilities | 18,086,272 | 26,638 | 7,992 | |
Financial liabilities held for trading | 32,195,605 | |||
Short positions | 31,349,407 | 8,960,806 | 8,333,584 | |
Derivatives | 1,069,718 | 8,244,193 | 2,523,506 | |
Total | 167,430,485 | 84,447,268 | 79,797,057 | |
Difference (assets less liabilities) | (45,150,478) | 31,292,009 | 11,684,457 | |
3 to 5 Years | ||||
Assets: | ||||
Cash and balances with the Brazilian Central Bank | 0 | 0 | 0 | |
Debt instruments | 26,367,903 | 19,379,308 | 28,135,295 | |
Equity instruments | 0 | 0 | 21,313 | |
Loans and amounts due from credit institutions | 11,371 | 18,166 | 34,458 | |
Loans and advances to customers | 21,397,689 | 17,796,364 | 17,357,244 | |
Loans and Receivables - Debt instruments | 0 | 0 | 4,472,758 | |
Investments Held-to-Maturity | 0 | 0 | 1,173,360 | |
Derivatives | 1,074,875 | 4,357,636 | 5,481,210 | |
Total | 48,851,838 | 41,551,474 | 56,675,638 | |
Liabilities / Financial liabilities at amortized cost: | ||||
Deposits from credit institutions | [1] | 2,598,172 | 2,717,941 | 2,818,095 |
Customer deposits | [1] | 16,624,469 | 17,176,009 | 14,003,821 |
Marketable debt securities | [1] | 5,854,091 | 1,491,866 | 312,143 |
Subordinated liabilities | 0 | 0 | 0 | |
Debt Instruments Eligible to Compose Capital | 0 | 0 | 0 | |
Other financial liabilities | 0 | 0 | 0 | |
Financial liabilities held for trading | 604,593 | |||
Short positions | 0 | 7,476,079 | 3,344,083 | |
Derivatives | 604,593 | 4,239,198 | 5,376,180 | |
Total | 25,681,325 | 33,101,093 | 25,854,322 | |
Difference (assets less liabilities) | 23,170,513 | 8,450,381 | 30,821,316 | |
After 5 Years | ||||
Assets: | ||||
Cash and balances with the Brazilian Central Bank | 0 | 0 | 0 | |
Debt instruments | 58,692,609 | 45,731,067 | 30,838,274 | |
Equity instruments | 0 | 292,121 | 1,024,933 | |
Loans and amounts due from credit institutions | 34,082 | 1,253,981 | 9,808,414 | |
Loans and advances to customers | 29,934,313 | 28,594,697 | 21,412,382 | |
Loans and Receivables - Debt instruments | 0 | 0 | 1,695,353 | |
Investments Held-to-Maturity | 0 | 0 | 8,491,402 | |
Derivatives | 1,118,173 | 1,974,354 | 2,007,107 | |
Total | 89,779,177 | 77,846,220 | 75,277,865 | |
Liabilities / Financial liabilities at amortized cost: | ||||
Deposits from credit institutions | [1] | 2,135,948 | 3,131,438 | 2,934,101 |
Customer deposits | [1] | 2,029 | 8,814 | 231,767 |
Marketable debt securities | [1] | 8,447,492 | 879,920 | 438,928 |
Subordinated liabilities | 0 | 0 | 0 | |
Debt Instruments Eligible to Compose Capital | 9,779,944 | 8,322,797 | 8,197,923 | |
Other financial liabilities | 27,600 | 0 | 307,000 | |
Financial liabilities held for trading | 1,428,838 | |||
Short positions | 0 | 15,905,507 | 17,128,136 | |
Derivatives | 1,428,838 | 2,448,531 | 1,445,162 | |
Total | 21,821,851 | 30,697,007 | 30,683,017 | |
Difference (assets less liabilities) | R$ 67957326 | R$ 47149213 | R$ 44594848 | |
[1] | Includes obligations which may be subject to early payment, being: demand and time deposits, repurchase agreements with clients, LCI and LCA. |
Other disclosures (Details 4)
Other disclosures (Details 4) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | |||
Equivalent value in Reais of assets and liabilities | |||
Cash and reserves at the Central Bank of Brazil | R$ 6947282 | R$ 126022 | R$ 174605 |
Financial asset/liabilities for trading | 0 | 626,101 | 402,186 |
Financial ssets/liabilities measured at fair value through profit or loss held for trading | 1,211,296 | 0 | 0 |
Available-for-sale financial assets | 0 | 11,665,952 | 9,787,622 |
Financial assets measured at fair value through other comprehensive income | 7,049,727 | 0 | 0 |
Loans and receivables | 0 | 18,703,454 | 28,061,831 |
Financial assets/liabilities measured at amortized cost | 17,912,203 | 0 | 0 |
Total | 33,120,508 | 31,121,529 | 38,426,244 |
Liabilities | |||
Equivalent value in Reais of assets and liabilities | |||
Cash and reserves at the Central Bank of Brazil | 0 | 0 | 0 |
Financial asset/liabilities for trading | 0 | 2,982,336 | 371,100 |
Financial ssets/liabilities measured at fair value through profit or loss held for trading | 101,833 | 0 | 0 |
Available-for-sale financial assets | 0 | 0 | 0 |
Financial assets measured at fair value through other comprehensive income | 0 | 0 | 0 |
Loans and receivables | 0 | 0 | 0 |
Financial assets/liabilities measured at amortized cost | 35,567,194 | 36,306,000 | 39,465,409 |
Total | R$ 35669027 | R$ 39288336 | R$ 39836509 |
Other disclosures (Details 5)
Other disclosures (Details 5) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Other Obligations [Abstract] | |||
Up to 1 Year | R$ 670553 | R$ 624424 | R$ 646804 |
Between1 to 5 Years | 1,435,970 | 1,545,101 | 1,789,670 |
More than 5 Years | 167,868 | 288,420 | 496,802 |
Total | R$ 2274391 | R$ 2457945 | R$ 2933276 |
Other disclosures (Details Text
Other disclosures (Details Text) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Guarantees And Commitments [Abstract] | |||
Deferred revenues for the premium received for providing guarantees | R$ 330018 | R$ 446143 | R$ 476564 |
Third-party securities held in custody | |||
Third-party securities held in custody | 34,040,742 | 40,459,429 | 27,772,714 |
Other Obligations | |||
Non-cancellable operating leases contracts with indeterminate mature | 674 | 934 | 1,013 |
Payment of operating leases recognized as expenses | R$ 683011 | R$ 655949 | R$ 663801 |
Business segment reporting (Det
Business segment reporting (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
(Condensed) Income Statement | ||||
NET INTEREST INCOME | R$ 41921342 | R$ 34946489 | R$ 30586493 | |
Income from equity instruments | 32,623 | 83,120 | 258,545 | |
Income from companies accounted for by the equity method | 65,958 | 71,551 | 47,537 | |
Net fee and commission income | 14,132,159 | 12,721,868 | 10,977,596 | |
Gains (losses) on financial assets and liabilities (net) and Exchange differences (net) | [1] | (5,589,273) | 1,574,146 | 7,590,970 |
Other operating expense (net) | (1,055,850) | (672,013) | (624,571) | |
TOTAL INCOME | 49,506,959 | 48,725,161 | 48,836,570 | |
Personnel expenses | (9,206,007) | (8,937,278) | (8,377,265) | |
Other administrative expenses | (7,586,131) | (7,183,317) | (6,543,145) | |
Depreciation and amortization | (1,739,959) | (1,662,247) | (1,482,639) | |
Provisions (net) | (1,999,604) | (3,309,239) | (2,724,742) | |
Impairment losses on financial assets (net) | (12,713,435) | (12,338,300) | (13,301,445) | |
Impairment losses on non-financial assets (net) | (508,310) | (456,711) | (114,321) | |
Other non-financial gains (losses) | 156,258 | (324,385) | 90,889 | |
OPERATING PROFIT BEFORE TAX | [1] | 15,909,771 | 14,513,684 | 16,383,902 |
Foreign Exchange Hedge | [1] | 5,867,320 | 809,694 | (6,717,250) |
ADJUSTED OPERATING INCOME BEFORE TAX | [1] | 21,777,091 | 15,323,378 | 9,666,652 |
Commercial Banking | ||||
(Condensed) Income Statement | ||||
NET INTEREST INCOME | 39,390,512 | 32,392,239 | 27,365,857 | |
Income from equity instruments | 9,974 | 83,120 | 258,545 | |
Income from companies accounted for by the equity method | 65,958 | 71,551 | 47,537 | |
Net fee and commission income | 12,537,112 | 11,261,952 | 9,580,332 | |
Gains (losses) on financial assets and liabilities (net) and Exchange differences (net) | [1] | (6,752,093) | (25,628) | 5,619,356 |
Other operating expense (net) | (965,466) | (640,522) | (611,051) | |
TOTAL INCOME | 44,285,998 | 43,142,712 | 42,260,576 | |
Personnel expenses | (8,404,198) | (8,166,562) | (7,638,124) | |
Other administrative expenses | (7,186,035) | (7,011,740) | (6,272,987) | |
Depreciation and amortization | (1,637,484) | (1,560,465) | (1,381,742) | |
Provisions (net) | (1,947,578) | (3,190,388) | (2,685,278) | |
Impairment losses on financial assets (net) | (12,419,979) | (11,232,902) | (11,607,468) | |
Impairment losses on non-financial assets (net) | (450,201) | (435,960) | (114,154) | |
Other non-financial gains (losses) | 156,258 | (324,385) | 90,889 | |
OPERATING PROFIT BEFORE TAX | [1] | 12,396,779 | 11,220,310 | 12,651,712 |
Foreign Exchange Hedge | [1] | 5,867,320 | 809,694 | (6,717,250) |
ADJUSTED OPERATING INCOME BEFORE TAX | [1] | 18,264,099 | 12,030,004 | 5,934,462 |
Global Wholesale Banking | ||||
(Condensed) Income Statement | ||||
NET INTEREST INCOME | 2,530,830 | 2,554,250 | 3,220,636 | |
Income from equity instruments | 22,649 | 0 | 0 | |
Income from companies accounted for by the equity method | 0 | 0 | 0 | |
Net fee and commission income | 1,595,047 | 1,459,916 | 1,397,264 | |
Gains (losses) on financial assets and liabilities (net) and Exchange differences (net) | [1] | 1,162,820 | 1,599,774 | 1,971,614 |
Other operating expense (net) | (90,384) | (31,491) | (13,520) | |
TOTAL INCOME | 5,220,961 | 5,582,449 | 6,575,994 | |
Personnel expenses | (801,809) | (770,716) | (739,141) | |
Other administrative expenses | (400,096) | (171,577) | (270,158) | |
Depreciation and amortization | (102,475) | (101,782) | (100,897) | |
Provisions (net) | (52,026) | (118,851) | (39,464) | |
Impairment losses on financial assets (net) | (293,456) | (1,105,398) | (1,693,977) | |
Impairment losses on non-financial assets (net) | (58,109) | (20,751) | (167) | |
Other non-financial gains (losses) | 0 | 0 | 0 | |
OPERATING PROFIT BEFORE TAX | [1] | 3,512,992 | 3,293,374 | 3,732,190 |
Foreign Exchange Hedge | [1] | 0 | 0 | 0 |
ADJUSTED OPERATING INCOME BEFORE TAX | [1] | R$ 3512992 | R$ 3293374 | R$ 3732190 |
[1] | Includes, in the Commercial Bank, the currency hedge of the investment in dollars (a strategy to mitigate the tax effects and the variation of the exchange rate of offshore investments on net income), the result of which is recorded under ' on financial assets and liabilities ' fully offset in the line of Taxes. |
Business segment reporting (D_2
Business segment reporting (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Other aggregates: | |||
Total assets | R$ 723865007 | R$ 645703039 | R$ 634393240 |
Loans and advances to customers | 301,072,207 | 272,420,157 | 252,002,774 |
Customer deposits | 304,197,800 | 276,042,141 | 247,445,177 |
Commercial Banking | |||
Other aggregates: | |||
Total assets | 646,128,672 | 580,090,402 | 557,624,385 |
Loans and advances to customers | 236,792,060 | 217,539,344 | 191,433,209 |
Customer deposits | 227,689,079 | 225,926,433 | 228,923,947 |
Global Wholesale Banking | |||
Other aggregates: | |||
Total assets | 77,736,335 | 65,612,637 | 76,768,855 |
Loans and advances to customers | 64,280,147 | 54,880,813 | 60,569,565 |
Customer deposits | R$ 76508721 | R$ 50115708 | R$ 18521230 |
Related party transactions (Det
Related party transactions (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Key Person Management Compensation [Abstract] | ||||
Fixed Compensation | R$ 90580 | R$ 83633 | R$ 90169 | |
Variable Compensation - in cash | 48,526 | 42,718 | 37,479 | |
Variable Compensation - in shares | 34,155 | 34,567 | 31,802 | |
Others | [1] | 54,494 | 11,919 | 14,580 |
Total Short-Term Benefits | 227,755 | 172,837 | 174,030 | |
Variable Compensation - in cash | 31,797 | 31,268 | 25,581 | |
Variable Compensation - in shares | 30,060 | 34,455 | 75,069 | |
Total Long-Term Benefits | 61,857 | 65,723 | 100,650 | |
Total | [2] | R$ 289612 | R$ 238560 | R$ 274680 |
[1] | In the first half of 2018, the Management of Banco Santander decided to carry out an early initiative, which was practiced by the Bank's liberality. | |||
[2] | Refers to the amount paid by Banco Santander and its subsidiaries to their Managers for positions they hold at Banco and other companies in the Conglomerate Santander. |
Related party transactions (D_2
Related party transactions (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Grupo Empresarial Santander, S.L. | ||||
Stockholders' | ||||
Common Shares (thousand) | [1] | R$ 1107673 | R$ 1107673 | R$ 1107673 |
Common Shares (%) | [1] | 29.00% | 29.00% | 28.80% |
Preferred Shares (thousand) | [1] | R$ 1019645 | R$ 1019645 | R$ 1019645 |
Preferred shares (%) | [1] | 27.70% | 27.70% | 27.50% |
Total Shares (thousand) | [1] | R$ 2127318 | R$ 2127318 | R$ 2127318 |
Total Shares (%) | [1] | 28.40% | 28.40% | 28.10% |
Sterrebeeck B.V. | ||||
Stockholders' | ||||
Common Shares (thousand) | [1] | R$ 1809583 | R$ 1809583 | R$ 1809583 |
Common Shares (%) | [1] | 47.40% | 47.40% | 47.00% |
Preferred Shares (thousand) | [1] | R$ 1733644 | R$ 1733644 | R$ 1733644 |
Preferred shares (%) | [1] | 47.10% | 47.10% | 46.70% |
Total Shares (thousand) | [1] | R$ 3543227 | R$ 3543227 | R$ 3543227 |
Total Shares (%) | [1] | 47.20% | 47.20% | 46.90% |
Banco Santander, S.A. | ||||
Stockholders' | ||||
Common Shares (thousand) | [1] | R$ 521964 | R$ 521964 | R$ 521965 |
Common Shares (%) | [1] | 13.70% | 13.60% | 13.60% |
Preferred Shares (thousand) | [1] | R$ 519268 | R$ 519268 | R$ 519268 |
Preferred shares (%) | [1] | 14.10% | 14.10% | 14.00% |
Total Shares (thousand) | [1] | R$ 1041232 | R$ 1041232 | R$ 1041233 |
Total Shares (%) | [1] | 13.90% | 13.90% | 13.80% |
Qatar Holding, LLC | ||||
Stockholders' | ||||
Common Shares (thousand) | R$ 207812 | |||
Common Shares (%) | 5.40% | |||
Preferred Shares (thousand) | R$ 207812 | |||
Preferred shares (%) | 5.60% | |||
Total Shares (thousand) | R$ 415624 | |||
Total Shares (%) | 5.50% | |||
Employees | ||||
Stockholders' | ||||
Common Shares (thousand) | R$ 2986 | R$ 3551 | R$ 3914 | |
Common Shares (%) | 0.10% | 0.10% | 0.10% | |
Preferred Shares (thousand) | R$ 2987 | R$ 3556 | R$ 3929 | |
Preferred shares (%) | 0.10% | 0.10% | 0.10% | |
Total Shares (thousand) | R$ 5973 | R$ 7107 | R$ 7843 | |
Total Shares (%) | 0.10% | 0.10% | 0.10% | |
Members of the Board of Directors | ||||
Stockholders' | ||||
Common Shares (thousand) | [2] | R$ 0 | ||
Common Shares (%) | [2] | 0.00% | ||
Preferred Shares (thousand) | [2] | R$ 0 | ||
Preferred shares (%) | [2] | 0.00% | ||
Total Shares (thousand) | [2] | R$ 0 | ||
Total Shares (%) | [2] | 0.00% | ||
Members of the Executive Board | ||||
Stockholders' | ||||
Common Shares (thousand) | [2] | R$ 0 | ||
Common Shares (%) | [2] | 0.00% | ||
Preferred Shares (thousand) | [2] | R$ 0 | ||
Preferred shares (%) | [2] | 0.00% | ||
Total Shares (thousand) | [2] | R$ 0 | ||
Total Shares (%) | [2] | 0.00% | ||
Directors | ||||
Stockholders' | ||||
Common Shares (thousand) | [2] | R$ 3930 | R$ 4016 | |
Common Shares (%) | [2] | 0.10% | 0.10% | |
Preferred Shares (thousand) | [2] | R$ 3930 | R$ 4016 | |
Preferred shares (%) | [2] | 0.10% | 0.10% | |
Total Shares (thousand) | [2] | R$ 7860 | R$ 8032 | |
Total Shares (%) | [2] | 0.10% | 0.10% | |
Other | ||||
Stockholders' | ||||
Common Shares (thousand) | R$ 359242 | R$ 366063 | R$ 174238 | |
Common Shares (%) | 9.40% | 9.60% | 4.50% | |
Preferred Shares (thousand) | R$ 387045 | R$ 393862 | R$ 202028 | |
Preferred shares (%) | 10.50% | 10.70% | 5.50% | |
Total Shares (thousand) | R$ 746287 | R$ 759925 | R$ 376266 | |
Total Shares (%) | 9.90% | 10.10% | 5.00% | |
Total | ||||
Stockholders' | ||||
Common Shares (thousand) | R$ 3805378 | R$ 3812850 | R$ 3825185 | |
Common Shares (%) | 99.70% | 99.80% | 99.40% | |
Preferred Shares (thousand) | R$ 3666519 | R$ 3673991 | R$ 3686326 | |
Preferred shares (%) | 99.60% | 99.80% | 99.40% | |
Total Shares (thousand) | R$ 7471897 | R$ 7486841 | R$ 7511511 | |
Total Shares (%) | 99.60% | 99.80% | 99.40% | |
Treasury shares | ||||
Stockholders' | ||||
Common Shares (thousand) | R$ 13317 | R$ 5845 | R$ 25786 | |
Common Shares (%) | 0.30% | 0.20% | 0.60% | |
Preferred Shares (thousand) | R$ 13317 | R$ 5845 | R$ 25786 | |
Preferred shares (%) | 0.40% | 0.20% | 0.60% | |
Total Shares (thousand) | R$ 26634 | R$ 11690 | R$ 51572 | |
Total Shares (%) | 0.40% | 0.20% | 0.60% | |
Total | ||||
Stockholders' | ||||
Common Shares (thousand) | R$ 3818695 | R$ 3818695 | R$ 3850971 | |
Common Shares (%) | 100.00% | 100.00% | 100.00% | |
Preferred Shares (thousand) | R$ 3679836 | R$ 3679836 | R$ 3712112 | |
Preferred shares (%) | 100.00% | 100.00% | 100.00% | |
Total Shares (thousand) | R$ 7498531 | R$ 7498531 | R$ 7563083 | |
Total Shares (%) | 100.00% | 100.00% | 100.00% | |
Free Float | ||||
Stockholders' | ||||
Common Shares (thousand) | [3] | R$ 362228 | R$ 369614 | R$ 385964 |
Common Shares (%) | [3] | 9.50% | 9.70% | 10.00% |
Preferred Shares (thousand) | [3] | R$ 390032 | R$ 397418 | R$ 413769 |
Preferred shares (%) | [3] | 10.60% | 10.80% | 11.10% |
Total Shares (thousand) | [3] | R$ 752260 | R$ 767032 | R$ 799733 |
Total Shares (%) | [3] | 10.00% | 10.20% | 10.60% |
[1] | Companies of the Santander Spain Group. | |||
[2] | None of the members of the Board of Directors and the Executive Board holds 1.0% or more of any class of shares. | |||
[3] | Composed by Employees, Qatar Holding and other. |
Related party transactions (D_3
Related party transactions (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Parent | |||||||
Related Party Transactions | |||||||
Assets | [1] | R$ 8169537 | R$ 8214739 | R$ 10919116 | |||
Financial assets for trading | [1] | (72,815) | (173,065) | (184,304) | |||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [1] | 8,194,590 | 8,363,038 | 10,900,941 | |||
Loans and advances to customers | [1] | 347 | 132 | 0 | |||
Loans and other values with credit institutions | [1] | 15,143 | 23,896 | 25,546 | |||
Other Assets | [1] | 32,272 | 738 | 176,933 | |||
Liabilities | [1] | (23,166,005) | (12,360,383) | (11,984,199) | |||
Deposits of Brazil Central Bank and deposits of credit institutions | [1] | (107,084) | (387,937) | (327,466) | |||
Securities | [1] | 0 | 0 | 0 | |||
Customer deposits | [1] | 0 | 0 | 0 | |||
Other financial liabilities - Dividends and interest on capital Payable | [1] | (3,922,473) | (3,992,820) | (3,794,130) | |||
Other Payables | [1] | (9,603) | (2,050) | (2,954) | |||
Debt Instruments Eligible to Compose Capital | [1] | (19,126,845) | (7,977,576) | (7,859,649) | |||
Parent | Banco Santander, S.A. – Spain | |||||||
Related Party Transactions | |||||||
Financial assets for trading | [1] | (72,815) | (173,065) | (184,304) | |||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [1],[2],[3] | 8,194,590 | 8,363,038 | 10,900,941 | |||
Loans and other values with credit institutions | [1] | 15,143 | 23,896 | 25,546 | |||
Other Assets | [1] | 32,272 | 738 | 176,933 | |||
Deposits of Brazil Central Bank and deposits of credit institutions | [1],[4] | (107,084) | (387,937) | (327,466) | |||
Other financial liabilities - Dividends and interest on capital Payable | [1] | (609,159) | (620,264) | (589,227) | |||
Other Payables | [1] | (9,603) | (2,050) | (2,954) | |||
Debt Instruments Eligible to Compose Capital | [1] | (19,126,845) | (7,977,576) | (7,859,649) | |||
Parent | Abbey National Treasury Services Plc | |||||||
Related Party Transactions | |||||||
Financial assets for trading | [1],[5] | 0 | 0 | 0 | |||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [1],[5] | 0 | 0 | 0 | |||
Loans and advances to customers | [1],[5] | 0 | 0 | 0 | |||
Parent | Real Fundo de Investimento Multimercado Santillana Credito Privado | |||||||
Related Party Transactions | |||||||
Financial assets for trading | [1],[5] | 0 | 0 | 0 | |||
Deposits of Brazil Central Bank and deposits of credit institutions | [1],[5] | 0 | 0 | 0 | |||
Parent | Banco RCI Brasil S.A. | |||||||
Related Party Transactions | |||||||
Financial assets for trading | [1] | 0 | 0 | 0 | |||
Loans and other values with credit institutions | [1] | 0 | 0 | 0 | |||
Other Assets | [1] | 0 | 0 | 0 | |||
Deposits of Brazil Central Bank and deposits of credit institutions | [1] | 0 | 0 | 0 | |||
Parent | Banco Santander Totta, S.A. | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [1],[5] | 0 | 0 | 0 | |||
Parent | Bank Zachodni | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [1],[5] | 0 | 0 | 0 | |||
Parent | Santander UK plc | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [1] | 0 | 0 | 0 | |||
Parent | Banco Santander, S.A. – Mexico | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [1],[5] | 0 | 0 | 0 | |||
Parent | Zurich Santander Brasil Seguros e Previdência S.A. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [1] | 0 | 0 | 0 | |||
Customer deposits | [1] | 0 | 0 | 0 | |||
Other Payables | [1] | 0 | 0 | 0 | |||
Parent | Zurich Santander Brasil Seguros S.A. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [1] | 0 | 0 | 0 | |||
Parent | Banco Santander Espanha | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [1] | 347 | 132 | 0 | |||
Parent | Isban Mexico, S.A. de C.V. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [1] | 0 | 0 | 0 | |||
Parent | Ingeniería de Software Bancario, S.L. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [1] | 0 | 0 | 0 | |||
Other Payables | [1] | 0 | [5] | 0 | 0 | ||
Parent | Gesban Servicios Administrativos Globales, S.L. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [1] | 0 | 0 | 0 | |||
Parent | Webmotors S.A. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [1] | 0 | 0 | 0 | |||
Customer deposits | [1] | 0 | 0 | 0 | |||
Parent | Santander Brasil Gestão de Recursos Ltda | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [1] | 0 | 0 | 0 | |||
Customer deposits | [1] | 0 | 0 | 0 | |||
Parent | Santander Securities Services Brasil Participações S.A. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [1] | 0 | [5] | 0 | 0 | ||
Customer deposits | [1],[5] | 0 | 0 | 0 | |||
Parent | Key Management Personnel | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [1] | 0 | [6] | 0 | 0 | ||
Securities | [1] | 0 | 0 | 0 | |||
Customer deposits | [1] | 0 | 0 | 0 | |||
Other financial liabilities - Dividends and interest on capital Payable | [1] | 0 | [7] | 0 | 0 | ||
Other Payables | [1] | 0 | 0 | 0 | |||
Parent | Produban Servicios Informáticos Generales, S.L. (Produban Espanha) | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions | [1] | 0 | [5] | 0 | 0 | ||
Other Payables | [1] | 0 | [5] | 0 | [5] | 0 | |
Parent | BHJV Assessoria e Consultoria em Gestão Empresarial LTDA | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions | [1] | 0 | 0 | 0 | |||
Parent | Produban Brasil Tecnologia | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions | [1] | 0 | 0 | 0 | |||
Parent | Santander Global Technology, S.L., SOCI | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions | [1] | 0 | 0 | 0 | |||
Parent | Banco Santander, S.A. – Uruguay | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions | [1] | 0 | [5] | 0 | 0 | ||
Deposits of Brazil Central Bank and deposits of credit institutions | [1],[5] | 0 | 0 | 0 | |||
Parent | Santander Securities Services Brasil DTVM S.A. | |||||||
Related Party Transactions | |||||||
Deposits of Brazil Central Bank and deposits of credit institutions | [1] | 0 | 0 | 0 | |||
Customer deposits | [1] | 0 | 0 | 0 | |||
Other Payables | [1] | 0 | 0 | 0 | |||
Parent | Santander Brasil Asset | |||||||
Related Party Transactions | |||||||
Deposits of Brazil Central Bank and deposits of credit institutions | [1] | 0 | [5] | 0 | 0 | ||
Customer deposits | [1] | 0 | [5] | 0 | 0 | ||
Other Payables | [1] | 0 | [5] | 0 | 0 | ||
Parent | Banco Santander Río S.A. | |||||||
Related Party Transactions | |||||||
Deposits of Brazil Central Bank and deposits of credit institutions | [1] | 0 | [5] | 0 | 0 | ||
Parent | Others | |||||||
Related Party Transactions | |||||||
Deposits of Brazil Central Bank and deposits of credit institutions | [1] | 0 | 0 | 0 | |||
Customer deposits | [1] | 0 | 0 | 0 | |||
Other Payables | [1] | 0 | 0 | 0 | |||
Parent | ISBAN Brasil S.A. | |||||||
Related Party Transactions | |||||||
Customer deposits | [1] | 0 | 0 | [5] | 0 | [5] | |
Other Payables | [1] | 0 | 0 | [5] | 0 | [5] | |
Parent | Produban Serviços de Informática S.A. | |||||||
Related Party Transactions | |||||||
Customer deposits | [1] | 0 | 0 | [5] | 0 | [5] | |
Parent | Gestora de Inteligência de Crédito | |||||||
Related Party Transactions | |||||||
Customer deposits | [1] | 0 | 0 | 0 | |||
Parent | Grupo Empresarial Santander, S.L. | |||||||
Related Party Transactions | |||||||
Other financial liabilities - Dividends and interest on capital Payable | [1] | (1,242,259) | (1,264,470) | [5] | (1,201,612) | [5] | |
Parent | Sterrebeeck B.V. | |||||||
Related Party Transactions | |||||||
Other financial liabilities - Dividends and interest on capital Payable | [1] | (2,071,055) | (2,108,086) | [5] | (2,003,291) | [5] | |
Parent | Banco Madesant | |||||||
Related Party Transactions | |||||||
Other financial liabilities - Dividends and interest on capital Payable | [1] | 0 | 0 | [5] | 0 | [5] | |
Parent | Santusa Holding, S.L. | |||||||
Related Party Transactions | |||||||
Other financial liabilities - Dividends and interest on capital Payable | [1] | 0 | 0 | 0 | [5] | ||
Joint-controlled companies | |||||||
Related Party Transactions | |||||||
Assets | 3,112,734 | 1,214,312 | 794,800 | ||||
Financial assets for trading | 205,337 | 0 | 0 | ||||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | 0 | 0 | 0 | ||||
Loans and advances to customers | 0 | 9,661 | 136,354 | ||||
Loans and other values with credit institutions | [1] | 2,905,947 | 1,203,032 | 656,806 | |||
Other Assets | 1,450 | 1,619 | 1,640 | ||||
Liabilities | (38,380) | (57,221) | (106,527) | ||||
Deposits of Brazil Central Bank and deposits of credit institutions | (36,871) | (47,423) | (40,202) | ||||
Securities | 0 | 0 | 0 | ||||
Customer deposits | (1,509) | (9,798) | (66,325) | ||||
Other financial liabilities - Dividends and interest on capital Payable | 0 | 0 | 0 | ||||
Other Payables | 0 | 0 | 0 | ||||
Debt Instruments Eligible to Compose Capital | 0 | 0 | 0 | ||||
Joint-controlled companies | Banco Santander, S.A. – Spain | |||||||
Related Party Transactions | |||||||
Financial assets for trading | 0 | 0 | 0 | ||||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [2],[3] | 0 | 0 | 0 | |||
Loans and other values with credit institutions | 0 | 0 | 0 | ||||
Other Assets | 0 | 0 | 0 | ||||
Deposits of Brazil Central Bank and deposits of credit institutions | [4] | 0 | 0 | 0 | |||
Other financial liabilities - Dividends and interest on capital Payable | 0 | 0 | 0 | ||||
Other Payables | 0 | 0 | 0 | ||||
Debt Instruments Eligible to Compose Capital | 0 | 0 | 0 | ||||
Joint-controlled companies | Abbey National Treasury Services Plc | |||||||
Related Party Transactions | |||||||
Financial assets for trading | [5] | 0 | 0 | 0 | |||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [5] | 0 | 0 | 0 | |||
Loans and advances to customers | [5] | 0 | 0 | 0 | |||
Joint-controlled companies | Real Fundo de Investimento Multimercado Santillana Credito Privado | |||||||
Related Party Transactions | |||||||
Financial assets for trading | [5] | 0 | 0 | 0 | |||
Deposits of Brazil Central Bank and deposits of credit institutions | [5] | 0 | 0 | 0 | |||
Joint-controlled companies | Banco RCI Brasil S.A. | |||||||
Related Party Transactions | |||||||
Financial assets for trading | 205,337 | 0 | 0 | ||||
Loans and other values with credit institutions | 2,905,947 | 1,203,032 | 656,806 | ||||
Other Assets | 1,450 | 1,619 | 1,640 | ||||
Deposits of Brazil Central Bank and deposits of credit institutions | (36,871) | (47,423) | (40,202) | ||||
Joint-controlled companies | Banco Santander Totta, S.A. | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [5] | 0 | 0 | 0 | |||
Joint-controlled companies | Bank Zachodni | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [5] | 0 | 0 | 0 | |||
Joint-controlled companies | Santander UK plc | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | 0 | 0 | 0 | ||||
Joint-controlled companies | Banco Santander, S.A. – Mexico | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [5] | 0 | 0 | 0 | |||
Joint-controlled companies | Zurich Santander Brasil Seguros e Previdência S.A. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | 0 | 0 | 0 | ||||
Customer deposits | 0 | [1] | 0 | 0 | |||
Other Payables | 0 | 0 | 0 | ||||
Joint-controlled companies | Zurich Santander Brasil Seguros S.A. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | 0 | 0 | 0 | ||||
Joint-controlled companies | Banco Santander Espanha | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [1] | 0 | 0 | 0 | |||
Joint-controlled companies | Isban Mexico, S.A. de C.V. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | 0 | 0 | 0 | ||||
Joint-controlled companies | Ingeniería de Software Bancario, S.L. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | 0 | 0 | 0 | ||||
Other Payables | 0 | [5] | 0 | 0 | |||
Joint-controlled companies | Gesban Servicios Administrativos Globales, S.L. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | 0 | 0 | 0 | ||||
Joint-controlled companies | Webmotors S.A. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | 0 | 9,661 | 136,354 | ||||
Customer deposits | (1,509) | (9,798) | (66,325) | ||||
Joint-controlled companies | Santander Brasil Gestão de Recursos Ltda | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | 0 | 0 | 0 | ||||
Customer deposits | 0 | 0 | 0 | ||||
Joint-controlled companies | Santander Securities Services Brasil Participações S.A. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | 0 | [5] | 0 | 0 | |||
Customer deposits | [5] | 0 | 0 | 0 | |||
Joint-controlled companies | Key Management Personnel | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | 0 | [6] | 0 | 0 | |||
Securities | 0 | 0 | 0 | ||||
Customer deposits | 0 | 0 | 0 | ||||
Other financial liabilities - Dividends and interest on capital Payable | 0 | [7] | 0 | 0 | |||
Other Payables | 0 | 0 | 0 | ||||
Joint-controlled companies | Produban Servicios Informáticos Generales, S.L. (Produban Espanha) | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions | 0 | [5] | 0 | 0 | |||
Other Payables | 0 | [5] | 0 | [5] | 0 | ||
Joint-controlled companies | BHJV Assessoria e Consultoria em Gestão Empresarial LTDA | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions | 0 | 0 | 0 | ||||
Joint-controlled companies | Produban Brasil Tecnologia | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions | 0 | 0 | 0 | ||||
Joint-controlled companies | Santander Global Technology, S.L., SOCI | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions | 0 | 0 | 0 | ||||
Joint-controlled companies | Banco Santander, S.A. – Uruguay | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions | 0 | [5] | 0 | 0 | |||
Deposits of Brazil Central Bank and deposits of credit institutions | [5] | 0 | 0 | 0 | |||
Joint-controlled companies | Santander Securities Services Brasil DTVM S.A. | |||||||
Related Party Transactions | |||||||
Deposits of Brazil Central Bank and deposits of credit institutions | 0 | 0 | 0 | ||||
Customer deposits | 0 | 0 | 0 | ||||
Other Payables | 0 | 0 | 0 | ||||
Joint-controlled companies | Santander Brasil Asset | |||||||
Related Party Transactions | |||||||
Deposits of Brazil Central Bank and deposits of credit institutions | 0 | [5] | 0 | 0 | |||
Customer deposits | 0 | [5] | 0 | 0 | |||
Other Payables | 0 | [5] | 0 | 0 | |||
Joint-controlled companies | Banco Santander Río S.A. | |||||||
Related Party Transactions | |||||||
Deposits of Brazil Central Bank and deposits of credit institutions | 0 | [5] | 0 | 0 | |||
Joint-controlled companies | Others | |||||||
Related Party Transactions | |||||||
Deposits of Brazil Central Bank and deposits of credit institutions | 0 | 0 | 0 | ||||
Customer deposits | 0 | 0 | 0 | ||||
Other Payables | 0 | 0 | 0 | ||||
Joint-controlled companies | ISBAN Brasil S.A. | |||||||
Related Party Transactions | |||||||
Customer deposits | 0 | 0 | [5] | 0 | [5] | ||
Other Payables | 0 | 0 | [5] | 0 | [5] | ||
Joint-controlled companies | Produban Serviços de Informática S.A. | |||||||
Related Party Transactions | |||||||
Customer deposits | 0 | 0 | [5] | 0 | [5] | ||
Joint-controlled companies | Gestora de Inteligência de Crédito | |||||||
Related Party Transactions | |||||||
Customer deposits | 0 | 0 | 0 | ||||
Joint-controlled companies | Grupo Empresarial Santander, S.L. | |||||||
Related Party Transactions | |||||||
Other financial liabilities - Dividends and interest on capital Payable | [1] | 0 | 0 | [5] | 0 | [5] | |
Joint-controlled companies | Sterrebeeck B.V. | |||||||
Related Party Transactions | |||||||
Other financial liabilities - Dividends and interest on capital Payable | [1] | 0 | 0 | [5] | 0 | [5] | |
Joint-controlled companies | Banco Madesant | |||||||
Related Party Transactions | |||||||
Other financial liabilities - Dividends and interest on capital Payable | 0 | 0 | [5] | 0 | [5] | ||
Joint-controlled companies | Santusa Holding, S.L. | |||||||
Related Party Transactions | |||||||
Other financial liabilities - Dividends and interest on capital Payable | 0 | 0 | 0 | [5] | |||
Other Related-Party | |||||||
Related Party Transactions | |||||||
Assets | [5] | 1,381,770 | 926,994 | 556,778 | |||
Financial assets for trading | [5] | 266,027 | (74,873) | (400,570) | |||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [5] | 146,988 | 76,009 | 94,530 | |||
Loans and advances to customers | [5] | 966,462 | 925,858 | 862,818 | |||
Loans and other values with credit institutions | [1],[5] | 2,293 | 0 | 0 | |||
Other Assets | [5] | 0 | 0 | 0 | |||
Liabilities | [5] | (2,975,342) | (2,107,677) | (1,222,556) | |||
Deposits of Brazil Central Bank and deposits of credit institutions | [5] | (1,410,619) | (1,862,058) | (980,702) | |||
Securities | [5] | (96,133) | 0 | 0 | |||
Customer deposits | [5] | (1,134,675) | (222,473) | (189,794) | |||
Other financial liabilities - Dividends and interest on capital Payable | [5] | (5,544) | (1,132) | (16,494) | |||
Other Payables | [5] | (424,504) | (22,014) | (35,566) | |||
Debt Instruments Eligible to Compose Capital | [5] | 0 | 0 | 0 | |||
Other Related-Party | Banco Santander, S.A. – Spain | |||||||
Related Party Transactions | |||||||
Financial assets for trading | [5] | 0 | 0 | 0 | |||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [2],[3],[5] | 0 | 0 | 0 | |||
Loans and other values with credit institutions | [5] | 0 | 0 | 0 | |||
Other Assets | [5] | 0 | 0 | 0 | |||
Deposits of Brazil Central Bank and deposits of credit institutions | [4],[5] | 0 | 0 | 0 | |||
Other financial liabilities - Dividends and interest on capital Payable | [5] | 0 | 0 | 0 | |||
Other Payables | [5] | 0 | 0 | 0 | |||
Debt Instruments Eligible to Compose Capital | [5] | 0 | 0 | 0 | |||
Other Related-Party | Abbey National Treasury Services Plc | |||||||
Related Party Transactions | |||||||
Financial assets for trading | [5] | 0 | (71,672) | (91,828) | |||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [5] | 87,260 | 71,751 | 92,118 | |||
Loans and advances to customers | [5] | 0 | 23 | 0 | |||
Other Related-Party | Real Fundo de Investimento Multimercado Santillana Credito Privado | |||||||
Related Party Transactions | |||||||
Financial assets for trading | [5] | 266,027 | (3,201) | (308,742) | |||
Deposits of Brazil Central Bank and deposits of credit institutions | [5] | (1,151,399) | (1,543,752) | (757,874) | |||
Other Related-Party | Banco RCI Brasil S.A. | |||||||
Related Party Transactions | |||||||
Financial assets for trading | [5] | 0 | 0 | 0 | |||
Loans and other values with credit institutions | [5] | 0 | 0 | 0 | |||
Other Assets | [5] | 0 | 0 | 0 | |||
Deposits of Brazil Central Bank and deposits of credit institutions | [5] | 0 | 0 | 0 | |||
Other Related-Party | Banco Santander Totta, S.A. | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [5] | 7,883 | 2,733 | 1,261 | |||
Other Related-Party | Bank Zachodni | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [5] | 193 | 177 | 117 | |||
Other Related-Party | Santander UK plc | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [5] | 46,615 | 0 | 0 | |||
Other Related-Party | Banco Santander, S.A. – Mexico | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions - Cash and overnight operations in foreign currency | [5] | 5,037 | 1,348 | 1,034 | |||
Other Related-Party | Zurich Santander Brasil Seguros e Previdência S.A. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [5] | 913,875 | 925,835 | 862,553 | |||
Customer deposits | [5] | (234,249) | [1] | (55,935) | (44,840) | ||
Other Payables | [5] | (16,924) | (27,748) | (30,684) | |||
Other Related-Party | Zurich Santander Brasil Seguros S.A. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [5] | 45,851 | 0 | 0 | |||
Other Related-Party | Banco Santander Espanha | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [1],[5] | 0 | 0 | 0 | |||
Other Related-Party | Isban Mexico, S.A. de C.V. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [5] | 122 | 0 | 0 | |||
Other Related-Party | Ingeniería de Software Bancario, S.L. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [5] | 0 | 0 | 0 | |||
Other Payables | [5] | 0 | 0 | 0 | |||
Other Related-Party | Gesban Servicios Administrativos Globales, S.L. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [5] | 23 | 0 | 0 | |||
Other Related-Party | Webmotors S.A. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [5] | 0 | 0 | 0 | |||
Customer deposits | [5] | 0 | 0 | 0 | |||
Other Related-Party | Santander Brasil Gestão de Recursos Ltda | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [5] | 169 | 0 | 265 | |||
Customer deposits | [5] | (126,988) | (32,334) | (39,361) | |||
Other Related-Party | Santander Securities Services Brasil Participações S.A. | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [5] | 927 | 0 | 0 | |||
Customer deposits | [5] | (58,968) | (71,947) | (52,484) | |||
Other Related-Party | Key Management Personnel | |||||||
Related Party Transactions | |||||||
Loans and advances to customers | [5] | 5,495 | [6] | 0 | 0 | ||
Securities | [5] | (96,133) | 0 | 0 | |||
Customer deposits | [5] | (37,889) | 0 | 0 | |||
Other financial liabilities - Dividends and interest on capital Payable | [5] | (4,432) | [7] | 0 | 0 | ||
Other Payables | [5] | (381,292) | 0 | 0 | |||
Other Related-Party | Produban Servicios Informáticos Generales, S.L. (Produban Espanha) | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions | [5] | 0 | 0 | 0 | |||
Other Payables | [5] | 0 | (905) | 0 | |||
Other Related-Party | BHJV Assessoria e Consultoria em Gestão Empresarial LTDA | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions | [5] | 10 | 0 | 0 | |||
Other Related-Party | Produban Brasil Tecnologia | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions | [5] | 2,091 | 0 | 0 | |||
Other Related-Party | Santander Global Technology, S.L., SOCI | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions | [5] | 192 | 0 | 0 | |||
Other Related-Party | Banco Santander, S.A. – Uruguay | |||||||
Related Party Transactions | |||||||
Loans and other values with credit institutions | [5] | 0 | 0 | 0 | |||
Deposits of Brazil Central Bank and deposits of credit institutions | [5] | 0 | (1,466) | (2,158) | |||
Other Related-Party | Santander Securities Services Brasil DTVM S.A. | |||||||
Related Party Transactions | |||||||
Deposits of Brazil Central Bank and deposits of credit institutions | [5] | 0 | (300,074) | (208,059) | |||
Customer deposits | [5] | (427,209) | 0 | 0 | |||
Other Payables | [5] | (4,291) | 6,762 | (4,430) | |||
Other Related-Party | Santander Brasil Asset | |||||||
Related Party Transactions | |||||||
Deposits of Brazil Central Bank and deposits of credit institutions | [5] | 0 | (16,766) | (12,079) | |||
Customer deposits | [5] | (18,639) | 0 | 0 | |||
Other Payables | [5] | (14,476) | (69) | (70) | |||
Other Related-Party | Banco Santander Río S.A. | |||||||
Related Party Transactions | |||||||
Deposits of Brazil Central Bank and deposits of credit institutions | [5] | (259,220) | 0 | 0 | |||
Other Related-Party | Others | |||||||
Related Party Transactions | |||||||
Deposits of Brazil Central Bank and deposits of credit institutions | [5] | 0 | 0 | (532) | |||
Customer deposits | [5] | (40,059) | (6,954) | (11,224) | |||
Other Payables | [5] | (7,521) | (291) | (43) | |||
Other Related-Party | ISBAN Brasil S.A. | |||||||
Related Party Transactions | |||||||
Customer deposits | [5] | 0 | (20,893) | (22,232) | |||
Other Payables | [5] | 0 | 237 | (339) | |||
Other Related-Party | Produban Serviços de Informática S.A. | |||||||
Related Party Transactions | |||||||
Customer deposits | [5] | 0 | (34,410) | (19,653) | |||
Other Related-Party | Gestora de Inteligência de Crédito | |||||||
Related Party Transactions | |||||||
Customer deposits | [5] | (190,674) | 0 | 0 | |||
Other Related-Party | Grupo Empresarial Santander, S.L. | |||||||
Related Party Transactions | |||||||
Other financial liabilities - Dividends and interest on capital Payable | [1],[5] | 0 | 0 | 0 | |||
Other Related-Party | Sterrebeeck B.V. | |||||||
Related Party Transactions | |||||||
Other financial liabilities - Dividends and interest on capital Payable | [1],[5] | 0 | 0 | 0 | |||
Other Related-Party | Banco Madesant | |||||||
Related Party Transactions | |||||||
Other financial liabilities - Dividends and interest on capital Payable | [5] | (1,112) | (1,132) | (1,075) | |||
Other Related-Party | Santusa Holding, S.L. | |||||||
Related Party Transactions | |||||||
Other financial liabilities - Dividends and interest on capital Payable | [5] | R$ 0 | R$ 0 | R$ 15419 | |||
[1] | Banco Santander (Brasil) S.A. is indirectly controlled by Banco Santander Spain (note 1-a), through its subsidiary Grupo Empresarial Santander, S.L. and Sterrebeeck B.V. | ||||||
[2] | In December 31, 2018, refers to the cash of R$1,515,437 (2017 - R$587,531 and 2016 - R$582,571). | ||||||
[3] | Refers the emissions of Eurobonds of Grand Cayman Branch, maturing between from January 16, 2016 to February 13, 2017 and interest of 3.152% p.a and 4.625% p.a. | ||||||
[4] | On December 31, 2018, include foreign currency investments (overnight applications) due on January 2, 2019 in the amount of R$6,583,716 (2017 - R$7,384,335 and 2016 - R$10,269,812) and interest of 2.38% p.a held at Santander Brasil EFC, Banco Santander Brasil and its Grand Cayman Branch. | ||||||
[5] | Refers to the Company's subsidiaries (Banco Santander Spain). | ||||||
[6] | The balance with key management personnel refers to operations contracted before the term of the mandates. | ||||||
[7] | Of the total dividends resolved in 2018, R$ 10,502 is allocated to the Key Management Personnel, remaining to pay the provisioned amount. |
Related party transactions (D_4
Related party transactions (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Parent | |||||||
Related-Party Transactions | |||||||
Income | [1] | R$ 972799 | R$ 389663 | R$ 798022 | |||
Interest and similar income - Loans and advances to customers | [1] | 0 | |||||
Interest and similar income - Loans and amounts due from credit institutions | [1] | 136,250 | 87,217 | 39,677 | |||
Interest expense and similar charges - Customer deposits | [1] | 0 | 0 | (4,192) | |||
Interest expense and similar charges - Deposits from credit institutions | [1] | (6,889) | (13,038) | (512) | |||
Fee and commission income (expense) | [1] | 6,213 | (5,099) | 5,334 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [1] | (680,903) | 592,919 | (613,168) | |||
Administrative expenses and Amortization | [1] | 0 | (50,271) | 0 | |||
Others Administrative expenses - Donation | [1] | 0 | 0 | 0 | |||
Debt Instruments Eligible to Compose Capital | [1] | (427,470) | (222,065) | (225,161) | |||
Parent | Key Management Personnel | |||||||
Related-Party Transactions | |||||||
Interest and similar income - Loans and advances to customers | [1] | 0 | |||||
Interest expense and similar charges - Customer deposits | [1] | 0 | |||||
Fee and commission income (expense) | [1] | 0 | |||||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [1] | 239 | |||||
Administrative expenses and Amortization | [1] | 0 | |||||
Parent | Banco Santander, S.A. – Spain | |||||||
Related-Party Transactions | |||||||
Interest and similar income - Loans and amounts due from credit institutions | [1] | 136,250 | 87,217 | 39,677 | |||
Interest expense and similar charges - Customer deposits | [1] | 0 | 0 | (4,192) | |||
Interest expense and similar charges - Deposits from credit institutions | [1] | (6,889) | (13,038) | (512) | |||
Fee and commission income (expense) | [1] | 6,213 | (5,099) | 5,334 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [1] | (680,903) | 592,919 | (613,168) | |||
Administrative expenses and Amortization | [1] | 0 | (50,271) | 0 | |||
Debt Instruments Eligible to Compose Capital | [1],[2] | (427,470) | (222,065) | (225,161) | |||
Parent | Banco RCI Brasil S.A. | |||||||
Related-Party Transactions | |||||||
Interest and similar income - Loans and amounts due from credit institutions | [1],[3] | 0 | 0 | 0 | |||
Interest expense and similar charges - Deposits from credit institutions | [1],[3] | 0 | 0 | 0 | |||
Fee and commission income (expense) | [1],[3] | 0 | 0 | 0 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [1],[3] | 0 | 0 | 0 | |||
Parent | Abbey National Treasury Services Plc | |||||||
Related-Party Transactions | |||||||
Interest and similar income - Loans and amounts due from credit institutions | [1] | 0 | 0 | 0 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [1] | 0 | 0 | 0 | |||
Parent | Cibrasec | |||||||
Related-Party Transactions | |||||||
Interest and similar income - Loans and amounts due from credit institutions | [1] | 0 | 0 | 0 | |||
Parent | ISBAN Brasil S.A. | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [1] | 0 | 0 | 0 | |||
Administrative expenses and Amortization | [1] | 0 | 0 | 0 | |||
Parent | Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [1] | 0 | 0 | 0 | |||
Administrative expenses and Amortization | [1] | 0 | 0 | 0 | |||
Parent | Santander Brasil Gestão de Recursos Ltda | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [1] | 0 | 0 | 0 | |||
Parent | Santander Securities Services Brasil DTVM S.A. | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [1] | 0 | 0 | 0 | |||
Interest expense and similar charges - Deposits from credit institutions | [1] | 0 | [2] | 0 | 0 | ||
Fee and commission income (expense) | [1] | 0 | 0 | 0 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [1],[2] | 0 | 0 | 0 | |||
Administrative expenses and Amortization | [1] | 0 | [2] | 0 | 0 | ||
Parent | Santander Cultural | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [1] | 0 | 0 | 0 | |||
Others Administrative expenses - Donation | [1] | 0 | 0 | 0 | |||
Parent | Gestora de Inteligência de Crédito | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [1] | 0 | |||||
Parent | Real Fundo de Investimento Multimercado Santillana Credito Privado | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [1] | 0 | 0 | 0 | |||
Interest expense and similar charges - Deposits from credit institutions | [1] | 0 | 0 | 0 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [1] | 0 | 0 | 0 | |||
Parent | Webmotors S.A. | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [1] | 0 | 0 | 0 | |||
Fee and commission income (expense) | [1] | 0 | 0 | 0 | |||
Parent | Others | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [1] | 0 | 0 | 0 | |||
Fee and commission income (expense) | [1] | 0 | 0 | 0 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [1] | 0 | 0 | 0 | |||
Administrative expenses and Amortization | [1] | 0 | 0 | 0 | |||
Parent | Santander Securities | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Deposits from credit institutions | [1] | 0 | 0 | 0 | |||
Parent | Santander Securities Services Brasil Participações S.A. | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Deposits from credit institutions | [1],[2] | 0 | 0 | 0 | |||
Administrative expenses and Amortization | [1] | 0 | 0 | [2] | 0 | [2] | |
Parent | SAM Brasil Participações | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Deposits from credit institutions | [1] | 0 | 0 | 0 | |||
Parent | Companhia de Crédito, Financiamento e Investimento RCI Brasil | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Deposits from credit institutions | [1] | 0 | 0 | 0 | |||
Fee and commission income (expense) | [1] | 0 | 0 | 0 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [1] | 0 | 0 | 0 | |||
Parent | Santander Asset Management, S.A. SGIIC. | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Deposits from credit institutions | [1] | 0 | 0 | 0 | |||
Parent | Banco Santander International | |||||||
Related-Party Transactions | |||||||
Fee and commission income (expense) | [1] | 0 | 0 | 0 | |||
Parent | Zurich Santander Brasil Seguros S.A. | |||||||
Related-Party Transactions | |||||||
Fee and commission income (expense) | [1] | 0 | 0 | 0 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [1] | 0 | 0 | 0 | |||
Parent | Zurich Santander Brasil Seguros e Previdência S.A. | |||||||
Related-Party Transactions | |||||||
Fee and commission income (expense) | [1] | 0 | 0 | 0 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [1] | 0 | 0 | 0 | |||
Parent | Santander Investment Securities Inc. | |||||||
Related-Party Transactions | |||||||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [1] | 0 | 0 | 0 | |||
Parent | ISBAN Chile S.A. | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | [1] | 0 | 0 | 0 | |||
Parent | Aquanima Brasil Ltda. | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | [1] | 0 | 0 | 0 | |||
Parent | TECBAN - Tecnologia Bancaria Brasil | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | [1] | 0 | 0 | 0 | |||
Parent | Produban Servicios Informaticos Generales, S.L. | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | [1] | 0 | 0 | 0 | |||
Parent | Ingeniería de Software Bancario, S.L. | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | [1] | 0 | 0 | 0 | |||
Parent | Konecta Brazil Outsourcing Ltda | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | [1] | 0 | 0 | 0 | |||
Parent | Santander Global Technology, S.L., SOCI | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | [1] | 0 | |||||
Parent | Fundacao Santander | |||||||
Related-Party Transactions | |||||||
Others Administrative expenses - Donation | [1] | 0 | 0 | 0 | |||
Parent | Instituto Escola Brasil | |||||||
Related-Party Transactions | |||||||
Others Administrative expenses - Donation | [1] | 0 | 0 | 0 | |||
Parent | Fundacao Sudameris | |||||||
Related-Party Transactions | |||||||
Others Administrative expenses - Donation | [1] | 0 | 0 | 0 | |||
Joint-controlled companies | |||||||
Related-Party Transactions | |||||||
Income | 192,889 | 126,781 | 136,111 | ||||
Interest and similar income - Loans and advances to customers | 0 | ||||||
Interest and similar income - Loans and amounts due from credit institutions | 136,666 | 87,381 | 114,909 | ||||
Interest expense and similar charges - Customer deposits | (92) | (4,486) | (26,996) | ||||
Interest expense and similar charges - Deposits from credit institutions | (5,871) | (3,026) | (10,959) | ||||
Fee and commission income (expense) | 32,960 | 14,999 | 20,133 | ||||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | 29,226 | 31,913 | 39,024 | ||||
Administrative expenses and Amortization | 0 | 0 | 0 | ||||
Others Administrative expenses - Donation | 0 | 0 | 0 | ||||
Debt Instruments Eligible to Compose Capital | 0 | 0 | 0 | ||||
Joint-controlled companies | Key Management Personnel | |||||||
Related-Party Transactions | |||||||
Interest and similar income - Loans and advances to customers | 0 | ||||||
Interest expense and similar charges - Customer deposits | 0 | ||||||
Fee and commission income (expense) | 0 | ||||||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | 239 | ||||||
Administrative expenses and Amortization | 0 | ||||||
Joint-controlled companies | Banco Santander, S.A. – Spain | |||||||
Related-Party Transactions | |||||||
Interest and similar income - Loans and amounts due from credit institutions | 0 | 0 | 0 | ||||
Interest expense and similar charges - Customer deposits | 0 | 0 | 0 | ||||
Interest expense and similar charges - Deposits from credit institutions | 0 | 0 | 0 | ||||
Fee and commission income (expense) | 0 | 0 | 0 | ||||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | 0 | 0 | 0 | ||||
Administrative expenses and Amortization | 0 | 0 | 0 | ||||
Debt Instruments Eligible to Compose Capital | [2] | 0 | 0 | 0 | |||
Joint-controlled companies | Banco RCI Brasil S.A. | |||||||
Related-Party Transactions | |||||||
Interest and similar income - Loans and amounts due from credit institutions | [3] | 136,666 | 87,381 | 114,909 | |||
Interest expense and similar charges - Deposits from credit institutions | [3] | (5,871) | (3,026) | (10,959) | |||
Fee and commission income (expense) | [3] | 31,981 | 14,996 | 19,211 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [3] | 29,226 | 31,913 | 39,024 | |||
Joint-controlled companies | Abbey National Treasury Services Plc | |||||||
Related-Party Transactions | |||||||
Interest and similar income - Loans and amounts due from credit institutions | 0 | 0 | 0 | ||||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | 0 | 0 | 0 | ||||
Joint-controlled companies | Cibrasec | |||||||
Related-Party Transactions | |||||||
Interest and similar income - Loans and amounts due from credit institutions | 0 | 0 | 0 | ||||
Joint-controlled companies | ISBAN Brasil S.A. | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | 0 | 0 | 0 | ||||
Administrative expenses and Amortization | 0 | 0 | 0 | ||||
Joint-controlled companies | Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | 0 | 0 | 0 | ||||
Administrative expenses and Amortization | 0 | 0 | 0 | ||||
Joint-controlled companies | Santander Brasil Gestão de Recursos Ltda | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | 0 | 0 | 0 | ||||
Joint-controlled companies | Santander Securities Services Brasil DTVM S.A. | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | 0 | 0 | 0 | ||||
Interest expense and similar charges - Deposits from credit institutions | 0 | [2] | 0 | 0 | |||
Fee and commission income (expense) | 0 | 0 | 0 | ||||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [2] | 0 | 0 | 0 | |||
Administrative expenses and Amortization | 0 | [2] | 0 | 0 | |||
Joint-controlled companies | Santander Cultural | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | 0 | 0 | 0 | ||||
Others Administrative expenses - Donation | 0 | 0 | 0 | ||||
Joint-controlled companies | Gestora de Inteligência de Crédito | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | 0 | ||||||
Joint-controlled companies | Real Fundo de Investimento Multimercado Santillana Credito Privado | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | 0 | 0 | 0 | ||||
Interest expense and similar charges - Deposits from credit institutions | 0 | 0 | 0 | ||||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | 0 | 0 | 0 | ||||
Joint-controlled companies | Webmotors S.A. | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | (92) | (4,486) | (26,996) | ||||
Fee and commission income (expense) | 979 | 3 | 922 | ||||
Joint-controlled companies | Others | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | 0 | 0 | 0 | ||||
Fee and commission income (expense) | 0 | 0 | 0 | ||||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | 0 | 0 | 0 | ||||
Administrative expenses and Amortization | 0 | 0 | 0 | ||||
Joint-controlled companies | Santander Securities | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Deposits from credit institutions | 0 | 0 | 0 | ||||
Joint-controlled companies | Santander Securities Services Brasil Participações S.A. | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Deposits from credit institutions | [2] | 0 | 0 | 0 | |||
Administrative expenses and Amortization | 0 | 0 | [2] | 0 | [2] | ||
Joint-controlled companies | SAM Brasil Participações | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Deposits from credit institutions | 0 | 0 | 0 | ||||
Joint-controlled companies | Companhia de Crédito, Financiamento e Investimento RCI Brasil | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Deposits from credit institutions | 0 | 0 | 0 | ||||
Fee and commission income (expense) | 0 | 0 | 0 | ||||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | 0 | 0 | 0 | ||||
Joint-controlled companies | Santander Asset Management, S.A. SGIIC. | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Deposits from credit institutions | 0 | 0 | 0 | ||||
Joint-controlled companies | Banco Santander International | |||||||
Related-Party Transactions | |||||||
Fee and commission income (expense) | 0 | 0 | 0 | ||||
Joint-controlled companies | Zurich Santander Brasil Seguros S.A. | |||||||
Related-Party Transactions | |||||||
Fee and commission income (expense) | 0 | 0 | 0 | ||||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | 0 | 0 | 0 | ||||
Joint-controlled companies | Zurich Santander Brasil Seguros e Previdência S.A. | |||||||
Related-Party Transactions | |||||||
Fee and commission income (expense) | 0 | 0 | 0 | ||||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | 0 | 0 | 0 | ||||
Joint-controlled companies | Santander Investment Securities Inc. | |||||||
Related-Party Transactions | |||||||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | 0 | 0 | 0 | ||||
Joint-controlled companies | ISBAN Chile S.A. | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | 0 | 0 | 0 | ||||
Joint-controlled companies | Aquanima Brasil Ltda. | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | 0 | 0 | 0 | ||||
Joint-controlled companies | TECBAN - Tecnologia Bancaria Brasil | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | 0 | 0 | 0 | ||||
Joint-controlled companies | Produban Servicios Informaticos Generales, S.L. | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | 0 | 0 | 0 | ||||
Joint-controlled companies | Ingeniería de Software Bancario, S.L. | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | 0 | 0 | 0 | ||||
Joint-controlled companies | Konecta Brazil Outsourcing Ltda | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | 0 | 0 | 0 | ||||
Joint-controlled companies | Santander Global Technology, S.L., SOCI | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | 0 | ||||||
Joint-controlled companies | Fundacao Santander | |||||||
Related-Party Transactions | |||||||
Others Administrative expenses - Donation | 0 | 0 | 0 | ||||
Joint-controlled companies | Instituto Escola Brasil | |||||||
Related-Party Transactions | |||||||
Others Administrative expenses - Donation | 0 | 0 | 0 | ||||
Joint-controlled companies | Fundacao Sudameris | |||||||
Related-Party Transactions | |||||||
Others Administrative expenses - Donation | 0 | 0 | 0 | ||||
Other Related-Party | |||||||
Related-Party Transactions | |||||||
Income | [2] | 1,323,622 | 1,210,444 | 1,197,489 | |||
Interest and similar income - Loans and advances to customers | [2] | 461 | |||||
Interest and similar income - Loans and amounts due from credit institutions | [2] | 1,080 | 1,417 | 396 | |||
Interest expense and similar charges - Customer deposits | [2] | (23,146) | (41,026) | (49,420) | |||
Interest expense and similar charges - Deposits from credit institutions | [2] | (134,896) | (113,569) | (115,458) | |||
Fee and commission income (expense) | [2] | 2,653,014 | 2,453,179 | 1,955,255 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [2] | (199,985) | (39,534) | 267,983 | |||
Administrative expenses and Amortization | [2] | (952,432) | (1,028,750) | (840,739) | |||
Others Administrative expenses - Donation | [2] | (20,013) | (21,273) | (20,528) | |||
Debt Instruments Eligible to Compose Capital | [2] | 0 | 0 | 0 | |||
Other Related-Party | Key Management Personnel | |||||||
Related-Party Transactions | |||||||
Interest and similar income - Loans and advances to customers | [2] | 461 | |||||
Interest expense and similar charges - Customer deposits | [2] | (8,707) | |||||
Fee and commission income (expense) | [2] | 355 | |||||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [2] | 239 | |||||
Administrative expenses and Amortization | [2] | (289,612) | |||||
Other Related-Party | Banco Santander, S.A. – Spain | |||||||
Related-Party Transactions | |||||||
Interest and similar income - Loans and amounts due from credit institutions | [2] | 0 | 0 | 0 | |||
Interest expense and similar charges - Customer deposits | [2] | 0 | (6,190) | 0 | |||
Interest expense and similar charges - Deposits from credit institutions | [2] | 0 | 0 | 0 | |||
Fee and commission income (expense) | [2] | 0 | 0 | 0 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [2] | 0 | 0 | 0 | |||
Administrative expenses and Amortization | [2] | 0 | 0 | 0 | |||
Debt Instruments Eligible to Compose Capital | [2] | 0 | 0 | 0 | |||
Other Related-Party | Banco RCI Brasil S.A. | |||||||
Related-Party Transactions | |||||||
Interest and similar income - Loans and amounts due from credit institutions | [2],[3] | 0 | 0 | 0 | |||
Interest expense and similar charges - Deposits from credit institutions | [2],[3] | 0 | 0 | 0 | |||
Fee and commission income (expense) | [2],[3] | 0 | 0 | 0 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [2],[3] | 0 | 0 | 0 | |||
Other Related-Party | Abbey National Treasury Services Plc | |||||||
Related-Party Transactions | |||||||
Interest and similar income - Loans and amounts due from credit institutions | [2] | 157 | 879 | 396 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [2] | (17,726) | 23,843 | 38,274 | |||
Other Related-Party | Cibrasec | |||||||
Related-Party Transactions | |||||||
Interest and similar income - Loans and amounts due from credit institutions | [2] | 923 | 538 | 0 | |||
Other Related-Party | ISBAN Brasil S.A. | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [2] | (90) | (2,145) | (3,560) | |||
Administrative expenses and Amortization | [2] | (14,210) | (337,161) | (290,430) | |||
Other Related-Party | Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A.) | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [2] | (215) | (1,547) | (2,117) | |||
Administrative expenses and Amortization | [2] | (33,567) | (242,191) | (209,253) | |||
Other Related-Party | Santander Brasil Gestão de Recursos Ltda | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [2] | (8,329) | (6,636) | (12,417) | |||
Other Related-Party | Santander Securities Services Brasil DTVM S.A. | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [2] | 0 | 0 | ||||
Interest expense and similar charges - Deposits from credit institutions | [2] | (4,442) | (95) | (20,979) | |||
Fee and commission income (expense) | [2] | 0 | 0 | 1,896 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [2] | 1,312 | (26,102) | (16,038) | |||
Administrative expenses and Amortization | [2] | (46,884) | (42,603) | (35,882) | |||
Other Related-Party | Santander Cultural | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [2] | (36) | (24,344) | (11) | |||
Others Administrative expenses - Donation | [2] | (2,748) | (3,513) | (2,737) | |||
Other Related-Party | Gestora de Inteligência de Crédito | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [2] | (5,743) | |||||
Other Related-Party | Real Fundo de Investimento Multimercado Santillana Credito Privado | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [2] | 0 | (69) | (31,097) | |||
Interest expense and similar charges - Deposits from credit institutions | [2] | (102,928) | (1,263) | (88,467) | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [2] | (210,324) | (79,480) | 257,475 | |||
Other Related-Party | Webmotors S.A. | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [2] | 0 | 0 | 0 | |||
Fee and commission income (expense) | [2] | 0 | 0 | 0 | |||
Other Related-Party | Others | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Customer deposits | [2] | (27) | (95) | (218) | |||
Fee and commission income (expense) | [2] | 18,707 | 2,436 | 2,489 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [2] | (13,791) | 928 | 3,387 | |||
Administrative expenses and Amortization | [2] | (49,216) | (2,209) | (3,353) | |||
Other Related-Party | Santander Securities | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Deposits from credit institutions | [2] | 0 | 0 | 0 | |||
Other Related-Party | Santander Securities Services Brasil Participações S.A. | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Deposits from credit institutions | [2] | (26,378) | 0 | (4,119) | |||
Administrative expenses and Amortization | [2] | 0 | 0 | 0 | |||
Other Related-Party | SAM Brasil Participações | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Deposits from credit institutions | [2] | (47) | (112,211) | (133) | |||
Other Related-Party | Companhia de Crédito, Financiamento e Investimento RCI Brasil | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Deposits from credit institutions | [2] | 0 | 0 | 0 | |||
Fee and commission income (expense) | [2] | 0 | 0 | 0 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [2] | 0 | 0 | 0 | |||
Other Related-Party | Santander Asset Management, S.A. SGIIC. | |||||||
Related-Party Transactions | |||||||
Interest expense and similar charges - Deposits from credit institutions | [2] | (1,101) | 0 | (1,760) | |||
Other Related-Party | Banco Santander International | |||||||
Related-Party Transactions | |||||||
Fee and commission income (expense) | [2] | 30,789 | 20,480 | 20,959 | |||
Other Related-Party | Zurich Santander Brasil Seguros S.A. | |||||||
Related-Party Transactions | |||||||
Fee and commission income (expense) | [2] | 300,868 | 295,508 | 218,773 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [2] | 0 | 1,788 | 0 | |||
Other Related-Party | Zurich Santander Brasil Seguros e Previdência S.A. | |||||||
Related-Party Transactions | |||||||
Fee and commission income (expense) | [2] | 2,302,295 | 2,134,755 | 1,711,138 | |||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [2] | 40,305 | 52,981 | 0 | |||
Other Related-Party | Santander Investment Securities Inc. | |||||||
Related-Party Transactions | |||||||
Gains (losses) on financial assets and liabilities (net) and exchange differences (net) | [2] | 0 | (13,492) | (15,115) | |||
Other Related-Party | ISBAN Chile S.A. | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | [2] | (24) | (23) | (26) | |||
Other Related-Party | Aquanima Brasil Ltda. | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | [2] | (30,021) | (25,638) | (24,557) | |||
Other Related-Party | TECBAN - Tecnologia Bancaria Brasil | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | [2] | (313,433) | (262,046) | (213,194) | |||
Other Related-Party | Produban Servicios Informaticos Generales, S.L. | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | [2] | 0 | (46,494) | (21,525) | |||
Other Related-Party | Ingeniería de Software Bancario, S.L. | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | [2] | 0 | (70,385) | (42,519) | |||
Other Related-Party | Konecta Brazil Outsourcing Ltda | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | [2] | 0 | 0 | 0 | |||
Other Related-Party | Santander Global Technology, S.L., SOCI | |||||||
Related-Party Transactions | |||||||
Administrative expenses and Amortization | [2] | (175,466) | |||||
Other Related-Party | Fundacao Santander | |||||||
Related-Party Transactions | |||||||
Others Administrative expenses - Donation | [2] | (1,330) | (1,837) | (3,452) | |||
Other Related-Party | Instituto Escola Brasil | |||||||
Related-Party Transactions | |||||||
Others Administrative expenses - Donation | [2] | 0 | (873) | (939) | |||
Other Related-Party | Fundacao Sudameris | |||||||
Related-Party Transactions | |||||||
Others Administrative expenses - Donation | [2] | R$ 15935 | R$ 15050 | R$ 13400 | |||
[1] | Banco Santander (Brasil) S.A. is indirectly controlled by Banco Santander Spain, through its subsidiary Grupo Empresarial Santander, S.L. and Sterrebeeck B.V. | ||||||
[2] | Refers to the Company's subsidiaries (Banco Santander, S.A .- Spain). | ||||||
[3] | In February, 2016 the Cia de Cr&#233;dito, Financiamento e Investimentos Renault was acquired by Banco RCI Brasil. |
Related party transactions (D_5
Related party transactions (Details Text) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Key Person Management Compensation [Abstract] | |||
Maximum global compensation | R$ 300000 | ||
Short-term benefits withholding taxes | |||
Short-term benefits withholding taxes | R$ 36356 | R$ 30713 | R$ 30312 |
Risk management (Details 1)
Risk management (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
By Maturity [Abstract] | |||
Less than 1 Year | R$ 186373511 | R$ 174247968 | R$ 161664232 |
Between 1 and 5 years | 99,309,551 | 82,513,030 | 79,356,369 |
More than 5 years | 36,250,128 | 31,068,215 | 27,416,955 |
Loans and advances to customers, gross | 321,933,190 | 287,829,213 | 268,437,556 |
By internal classification of risk | |||
Low | 240,440,294 | 226,098,497 | 207,889,639 |
Medium-low | 50,485,682 | 33,635,378 | 32,104,168 |
Medium | 11,967,262 | 10,423,293 | 10,940,879 |
Medium-High | 7,722,198 | 8,215,024 | 6,976,969 |
High | 11,317,754 | 9,457,021 | 10,525,901 |
Loans and advances to customers, gross | R$ 321933190 | R$ 287829213 | R$ 268437556 |
Risk management (Details 2)
Risk management (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Exposure [Abstract] | |||
Commercial and industrial | R$ 146293616 | R$ 140619110 | R$ 140992900 |
Real Estate Credit - construction | 36,515,352 | 34,808,681 | 36,650,011 |
Individual loans | 137,287,593 | 110,512,978 | 88,701,763 |
Leasing | R$ 1836629 | R$ 1888444 | R$ 2092882 |
Probability of default | |||
Commercial and industrial | 8.00% | ||
Real Estate Credit - construction | 4.00% | ||
Individual loans | 8.00% | ||
Leasing | 5.00% | ||
Default loss | |||
Commercial and industrial | 42.00% | ||
Real Estate Credit - construction | 12.00% | ||
Individual loans | 64.00% | ||
Leasing | 32.00% |
Risk management (Details 3)
Risk management (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Internal Risk Model [Abstract] | ||||
Credit risk exposure - customers (Thousand of Reais) | R$ 364193664 | R$ 330474249 | R$ 301702586 | |
Loans and advances to customers, gross (note 9) | 321,933,190 | 287,829,213 | 268,437,556 | |
Contingent Liabilities - Guarantees and other sureties (note 44.a) | R$ 42260474 | R$ 42645036 | R$ 33265030 | |
Non-performing loans ratio (%) - unaudited | 6.98% | 6.65% | 7.04% | |
Impairment coverage ratio (%) - unaudited | 102.42% | 95.39% | 96.31% | |
Specific credit loss provisions, net of RAWO (*) (Thousand of Reais) - unaudited | [1] | R$ 22969315 | R$ 18261638 | R$ 18191126 |
Cost of credit (% of risk) - unaudited | 3.90% | 3.98% | 4.52% | |
[1] | RAWO = Recoveries of Assets Derecognized. |
Risk management (Details 4)
Risk management (Details 4) | Dec. 31, 2018 |
Macroeconomic Variables And Credit Risks And Credit Losses [Abstract] | |
Unemployment rates | 11.40% |
Interest Rates | 6.50% |
increase in GDP | 1.80% |
Risk management (Details 5)
Risk management (Details 5) - BRL (R$) R$ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Interest-earning assets: | |||
Financial Assets Held For Trading | R$ 119931 | R$ 54038 | R$ 83650 |
Debt instruments | 100,668 | 32,139 | 59,127 |
Equity instruments | 807 | 490 | 397 |
Trading derivatives | 18,456 | 21,410 | 24,126 |
Available-For-Sale Financial Assets | 0 | 90,609 | 59,779 |
Debt instruments | 0 | 89,503 | 57,794 |
Equity instruments | 0 | 1,107 | 1,985 |
Other Financial Assets At Fair Value Through Profit Or Loss | 30,415 | 1,622 | 1,611 |
Debt instruments | 30,117 | 1,589 | 1,569 |
Equity instruments | 298 | 33 | 42 |
Non-Current Assets Held For Sale | 8,063 | 10,593 | 9,936 |
Reserves from Brazilian Central Bank | 70,103 | 59,051 | 58,594 |
Loans and Receivables | 311,012 | 295,835 | 296,536 |
Total | 539,524 | 511,750 | 510,106 |
Interest-bearing liabilities: | |||
Deposits from credit institutions | 390,352 | 334,474 | 306,708 |
Subordinated debts | 19,544 | 8,829 | 8,783 |
Marketable debt securities | 88,693 | 69,348 | 103,921 |
Trading derivatives | 18,726 | 20,310 | 19,912 |
Short positions | 32,440 | 32,531 | 31,551 |
Total | 549,755 | 465,492 | 470,875 |
0 to 30 days | |||
Interest-earning assets: | |||
Financial Assets Held For Trading | 8,193 | 5,541 | 26,960 |
Debt instruments | 5,359 | 653 | 20,232 |
Equity instruments | 807 | 490 | 397 |
Trading derivatives | 2,027 | 4,398 | 6,331 |
Available-For-Sale Financial Assets | 0 | 2,032 | 2,939 |
Debt instruments | 0 | 925 | 954 |
Equity instruments | 0 | 1,107 | 1,985 |
Other Financial Assets At Fair Value Through Profit Or Loss | 677 | 72 | 80 |
Debt instruments | 379 | 38 | 38 |
Equity instruments | 298 | 33 | 42 |
Non-Current Assets Held For Sale | 24 | 80 | 79 |
Reserves from Brazilian Central Bank | 70,103 | 59,051 | 58,594 |
Loans and Receivables | 27,387 | 22,033 | 16,435 |
Total | 106,384 | 88,809 | 105,087 |
Interest-bearing liabilities: | |||
Deposits from credit institutions | 200,818 | 150,719 | 135,457 |
Subordinated debts | 9,857 | 0 | 0 |
Marketable debt securities | 13,353 | 4,436 | 6,214 |
Trading derivatives | 1,104 | 4,618 | 6,046 |
Short positions | 32,440 | 32,531 | 31,551 |
Total | 257,572 | 192,304 | 179,268 |
31 to 180 days | |||
Interest-earning assets: | |||
Financial Assets Held For Trading | 6,155 | 1,779 | 5,242 |
Debt instruments | 5,192 | 890 | 2,370 |
Equity instruments | 0 | 0 | 0 |
Trading derivatives | 963 | 889 | 2,872 |
Available-For-Sale Financial Assets | 0 | 1,272 | 1,350 |
Debt instruments | 0 | 1,272 | 1,350 |
Equity instruments | 0 | 0 | 0 |
Other Financial Assets At Fair Value Through Profit Or Loss | 9,091 | 13 | 14 |
Debt instruments | 9,091 | 13 | 14 |
Equity instruments | 0 | 0 | 0 |
Non-Current Assets Held For Sale | 521 | 168 | 168 |
Reserves from Brazilian Central Bank | 0 | 0 | 0 |
Loans and Receivables | 101,441 | 81,275 | 99,924 |
Total | 117,208 | 84,507 | 106,698 |
Interest-bearing liabilities: | |||
Deposits from credit institutions | 47,172 | 46,254 | 49,973 |
Subordinated debts | 87 | 789 | 268 |
Marketable debt securities | 20,875 | 36,208 | 40,229 |
Trading derivatives | 1,370 | 659 | 1,308 |
Short positions | 0 | 0 | 0 |
Total | 69,417 | 83,909 | 91,778 |
181 to 365 days | |||
Interest-earning assets: | |||
Financial Assets Held For Trading | 12,013 | 6,556 | 4,593 |
Debt instruments | 8,294 | 5,739 | 2,711 |
Equity instruments | 0 | 0 | 0 |
Trading derivatives | 3,719 | 818 | 1,882 |
Available-For-Sale Financial Assets | 0 | 17,092 | 1,761 |
Debt instruments | 0 | 17,092 | 1,761 |
Equity instruments | 0 | 0 | 0 |
Other Financial Assets At Fair Value Through Profit Or Loss | 368 | 50 | 50 |
Debt instruments | 368 | 50 | 50 |
Equity instruments | 0 | 0 | 0 |
Non-Current Assets Held For Sale | 89 | 222 | 220 |
Reserves from Brazilian Central Bank | 0 | 0 | 0 |
Loans and Receivables | 35,900 | 34,430 | 32,590 |
Total | 48,370 | 58,351 | 39,214 |
Interest-bearing liabilities: | |||
Deposits from credit institutions | 65,606 | 62,605 | 46,686 |
Subordinated debts | 0 | 257 | 255 |
Marketable debt securities | 14,612 | 12,313 | 33,336 |
Trading derivatives | 3,257 | 504 | 1,268 |
Short positions | 0 | 0 | 0 |
Total | 83,475 | 75,679 | 81,545 |
1 to 5 years | |||
Interest-earning assets: | |||
Financial Assets Held For Trading | 67,606 | 29,968 | 31,938 |
Debt instruments | 58,363 | 16,709 | 23,479 |
Equity instruments | 0 | 0 | 0 |
Trading derivatives | 9,243 | 13,259 | 8,459 |
Available-For-Sale Financial Assets | 0 | 46,502 | 42,683 |
Debt instruments | 0 | 46,502 | 42,683 |
Equity instruments | 0 | 0 | 0 |
Other Financial Assets At Fair Value Through Profit Or Loss | 16,702 | 479 | 486 |
Debt instruments | 16,702 | 479 | 486 |
Equity instruments | 0 | 0 | 0 |
Non-Current Assets Held For Sale | 3,603 | 3,082 | 2,920 |
Reserves from Brazilian Central Bank | 0 | 0 | 0 |
Loans and Receivables | 85,318 | 86,645 | 79,467 |
Total | 173,229 | 166,677 | 157,494 |
Interest-bearing liabilities: | |||
Deposits from credit institutions | 71,413 | 69,778 | 69,605 |
Subordinated debts | 0 | 7,784 | 8,260 |
Marketable debt securities | 30,138 | 15,544 | 23,647 |
Trading derivatives | 9,673 | 12,243 | 7,123 |
Short positions | 0 | 0 | 0 |
Total | 111,224 | 105,349 | 108,635 |
Above 5 years | |||
Interest-earning assets: | |||
Financial Assets Held For Trading | 25,964 | 10,194 | 14,917 |
Debt instruments | 23,460 | 8,148 | 10,335 |
Equity instruments | 0 | 0 | 0 |
Trading derivatives | 2,504 | 2,046 | 4,582 |
Available-For-Sale Financial Assets | 0 | 23,711 | 11,046 |
Debt instruments | 0 | 23,711 | 11,046 |
Equity instruments | 0 | 0 | 0 |
Other Financial Assets At Fair Value Through Profit Or Loss | 3,577 | 1,008 | 981 |
Debt instruments | 3,577 | 1,008 | 981 |
Equity instruments | 0 | 0 | 0 |
Non-Current Assets Held For Sale | 3,826 | 7,040 | 6,549 |
Reserves from Brazilian Central Bank | 0 | 0 | 0 |
Loans and Receivables | 60,966 | 71,453 | 68,120 |
Total | 94,333 | 113,406 | 101,613 |
Interest-bearing liabilities: | |||
Deposits from credit institutions | 5,343 | 5,119 | 4,987 |
Subordinated debts | 9,687 | 0 | 0 |
Marketable debt securities | 9,715 | 847 | 495 |
Trading derivatives | 3,322 | 2,285 | 4,167 |
Short positions | 0 | 0 | 0 |
Total | R$ 28067 | R$ 8251 | R$ 9649 |
Risk management (Details 6)
Risk management (Details 6) - BRL (R$) R$ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Dollar | |||
Assets: | |||
Cash/Applications/Debt Instruments | R$ 348797 | R$ 54380 | R$ 4839 |
Loans and advances to customers | 4,505 | 3,818 | 3,485 |
Investments in Foreign Subsidiaries and Dependence | 45,345 | 36,613 | 34,337 |
Derivatives | 231,240 | 262,092 | 166,626 |
Others | 23,619 | 46,200 | 25,273 |
Total | 653,506 | 403,102 | 234,560 |
Liabilities: | |||
Funding in foreign currency | 390,418 | 32,962 | 32,255 |
Derivatives | 262,396 | 277,358 | 183,277 |
Others | 1,007 | 93,821 | 19,198 |
Total | 653,821 | 404,140 | 234,730 |
Euro | |||
Assets: | |||
Cash/Applications/Debt Instruments | 0 | 11,684 | 0 |
Loans and advances to customers | 155 | 321 | 0 |
Investments in Foreign Subsidiaries and Dependence | 3,390 | 3,010 | 2,662 |
Derivatives | 18,163 | 45,317 | 24,173 |
Others | 1,974 | 13,028 | 1,020 |
Total | 23,682 | 73,361 | 27,855 |
Liabilities: | |||
Funding in foreign currency | 462 | 3,047 | 640 |
Derivatives | 24,809 | 54,633 | 27,973 |
Others | 0 | 15,975 | 0 |
Total | 25,271 | 73,654 | 28,613 |
Others | |||
Assets: | |||
Cash/Applications/Debt Instruments | 0 | 10,377 | 0 |
Loans and advances to customers | 0 | 0 | 0 |
Investments in Foreign Subsidiaries and Dependence | 0 | 0 | 0 |
Derivatives | 2,490 | 9,640 | 11,241 |
Others | 42 | 6,237 | 0 |
Total | 2,532 | 26,254 | 11,241 |
Liabilities: | |||
Funding in foreign currency | 145 | 17 | 0 |
Derivatives | 2,391 | 9,294 | 11,426 |
Others | 0 | 17,068 | 104 |
Total | 2,536 | 26,378 | 11,530 |
Total | |||
Assets: | |||
Cash/Applications/Debt Instruments | 348,797 | 76,442 | 4,839 |
Loans and advances to customers | 4,660 | 4,139 | 3,485 |
Investments in Foreign Subsidiaries and Dependence | 48,735 | 39,623 | 36,999 |
Derivatives | 251,893 | 317,049 | 202,040 |
Others | 25,635 | 65,465 | 26,293 |
Total | 679,720 | 502,717 | 273,656 |
Liabilities: | |||
Funding in foreign currency | 391,025 | 36,025 | 32,895 |
Derivatives | 289,596 | 341,284 | 222,676 |
Others | 1,007 | 126,864 | 19,302 |
Total | R$ 681628 | R$ 504173 | R$ 274873 |
Risk management (Details 7)
Risk management (Details 7) - BRL (R$) R$ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
0 a 30 days | |||
Customers Funding | |||
Demand deposits | R$ 18854 | R$ 15252 | R$ 15794 |
Savings accounts | 46,068 | 40,570 | 35,901 |
Time deposits | 49,771 | 39,549 | 24,452 |
Interbank deposit | 863 | 622 | 944 |
Funds from acceptances and issuance of securities | 3,681 | 4,436 | 6,304 |
Borrowings and Onlendings | 5,181 | 5,606 | 4,114 |
Subordinated Debts / Debt Instruments Eligible to Compose Capital | 9,857 | 0 | 0 |
Total | 134,275 | 106,035 | 87,509 |
Total | |||
Customers Funding | |||
Demand deposits | 18,854 | 15,252 | 15,794 |
Savings accounts | 46,068 | 40,570 | 35,901 |
Time deposits | 190,971 | 170,570 | 150,686 |
Interbank deposit | 4,118 | 3,244 | 2,379 |
Funds from acceptances and issuance of securities | 70,110 | 69,348 | 105,120 |
Borrowings and Onlendings | 45,936 | 48,304 | 46,124 |
Subordinated Debts / Debt Instruments Eligible to Compose Capital | 19,666 | 8,829 | 8,784 |
Total | R$ 395723 | R$ 356117 | R$ 364788 |
% | |||
Customers Funding | |||
Demand deposits | 100.00% | 100.00% | 100.00% |
Savings accounts | 100.00% | 100.00% | 100.00% |
Time deposits | 26.00% | 23.00% | 16.00% |
Interbank deposit | 21.00% | 19.00% | 40.00% |
Funds from acceptances and issuance of securities | 5.00% | 6.00% | 6.00% |
Borrowings and Onlendings | 11.00% | 12.00% | 9.00% |
Subordinated Debts / Debt Instruments Eligible to Compose Capital | 50.00% | 0.00% | 0.00% |
Total | 34.00% | 30.00% | 23.00% |
Risk management (Details 8)
Risk management (Details 8) - BRL (R$) R$ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Interest-earning assets: | |||
Financial Assets Held For Trading | R$ 158923 | R$ 65265 | R$ 98812 |
Debt instruments | 140,467 | 43,856 | 74,686 |
Trading derivatives | 18,456 | 21,410 | 24,126 |
Available-For-Sale Financial Assets | 0 | 121,399 | 89,594 |
Debt instruments | 0 | 121,399 | 89,594 |
Other Financial Assets At Fair Value Through Profit Or Loss | 34,691 | 2,640 | 2,514 |
Debt instruments | 34,691 | 2,640 | 2,514 |
Non-Current Assets Held For Sale | 9,731 | 13,419 | 13,762 |
Reserves from Brazilian Central Bank | 70,103 | 59,051 | 58,594 |
Loans and Receivables | 387,758 | 415,515 | 362,539 |
Total | 661,206 | 677,290 | 625,815 |
Interest-bearing liabilities: | |||
Deposits from credit institutions | 400,307 | 360,951 | 330,826 |
Subordinated Debts / Debt Instruments Eligible to Compose Capital | 19,544 | 8,848 | 11,310 |
Marketable debt securities | 93,372 | 73,491 | 110,920 |
Trading derivatives | 18,726 | 20,310 | 19,912 |
Short positions | 32,440 | 32,531 | 31,551 |
Total | 564,389 | 496,130 | 504,519 |
0 to 30 days | |||
Interest-earning assets: | |||
Financial Assets Held For Trading | 7,388 | 5,051 | 27,093 |
Debt instruments | 5,361 | 654 | 20,762 |
Trading derivatives | 2,027 | 4,398 | 6,331 |
Available-For-Sale Financial Assets | 0 | 925 | 1,492 |
Debt instruments | 0 | 925 | 1,492 |
Other Financial Assets At Fair Value Through Profit Or Loss | 379 | 38 | 38 |
Debt instruments | 379 | 38 | 38 |
Non-Current Assets Held For Sale | 24 | 81 | 79 |
Reserves from Brazilian Central Bank | 70,103 | 59,051 | 58,594 |
Loans and Receivables | 29,234 | 74,887 | 18,151 |
Total | 107,128 | 140,034 | 105,447 |
Interest-bearing liabilities: | |||
Deposits from credit institutions | 198,259 | 150,979 | 135,725 |
Subordinated Debts / Debt Instruments Eligible to Compose Capital | 9,857 | 0 | 0 |
Marketable debt securities | 13,395 | 4,445 | 6,234 |
Trading derivatives | 1,104 | 4,618 | 6,046 |
Short positions | 32,440 | 32,531 | 31,551 |
Total | 255,055 | 192,573 | 179,556 |
31 to 180 days | |||
Interest-earning assets: | |||
Financial Assets Held For Trading | 6,199 | 1,788 | 5,262 |
Debt instruments | 5,236 | 899 | 2,390 |
Trading derivatives | 963 | 889 | 2,872 |
Available-For-Sale Financial Assets | 0 | 1,283 | 1,373 |
Debt instruments | 0 | 1,283 | 1,373 |
Other Financial Assets At Fair Value Through Profit Or Loss | 9,230 | 13 | 14 |
Debt instruments | 9,230 | 13 | 14 |
Non-Current Assets Held For Sale | 558 | 169 | 170 |
Reserves from Brazilian Central Bank | 0 | 0 | 0 |
Loans and Receivables | 111,216 | 93,587 | 112,337 |
Total | 127,203 | 96,840 | 119,156 |
Interest-bearing liabilities: | |||
Deposits from credit institutions | 46,926 | 50,936 | 51,098 |
Subordinated Debts / Debt Instruments Eligible to Compose Capital | 0 | 807 | 347 |
Marketable debt securities | 21,343 | 36,855 | 41,431 |
Trading derivatives | 1,370 | 659 | 1,308 |
Short positions | 0 | 0 | 0 |
Total | 69,639 | 89,257 | 94,184 |
181 to 365 days | |||
Interest-earning assets: | |||
Financial Assets Held For Trading | 12,162 | 6,737 | 4,749 |
Debt instruments | 8,443 | 5,919 | 2,867 |
Trading derivatives | 3,719 | 818 | 1,882 |
Available-For-Sale Financial Assets | 0 | 12,695 | 1,819 |
Debt instruments | 0 | 12,695 | 1,819 |
Other Financial Assets At Fair Value Through Profit Or Loss | 379 | 51 | 52 |
Debt instruments | 379 | 51 | 52 |
Non-Current Assets Held For Sale | 126 | 227 | 227 |
Reserves from Brazilian Central Bank | 0 | 0 | 0 |
Loans and Receivables | 45,564 | 45,397 | 42,763 |
Total | 58,231 | 65,107 | 49,610 |
Interest-bearing liabilities: | |||
Deposits from credit institutions | 67,142 | 66,571 | 50,024 |
Subordinated Debts / Debt Instruments Eligible to Compose Capital | 0 | 257 | 330 |
Marketable debt securities | 15,290 | 12,904 | 35,390 |
Trading derivatives | 3,257 | 504 | 1,268 |
Short positions | 0 | 0 | 0 |
Total | 85,689 | 80,236 | 87,012 |
1 to 5 years | |||
Interest-earning assets: | |||
Financial Assets Held For Trading | 80,590 | 32,841 | 36,135 |
Debt instruments | 71,347 | 19,582 | 27,676 |
Trading derivatives | 9,243 | 13,259 | 8,459 |
Available-For-Sale Financial Assets | 0 | 56,167 | 55,056 |
Debt instruments | 0 | 56,167 | 55,056 |
Other Financial Assets At Fair Value Through Profit Or Loss | 18,666 | 543 | 586 |
Debt instruments | 18,666 | 543 | 586 |
Non-Current Assets Held For Sale | 3,904 | 3,370 | 3,307 |
Reserves from Brazilian Central Bank | 0 | 0 | 0 |
Loans and Receivables | 116,107 | 117,084 | 106,518 |
Total | 219,267 | 210,005 | 201,602 |
Interest-bearing liabilities: | |||
Deposits from credit institutions | 79,161 | 84,274 | 86,535 |
Subordinated Debts / Debt Instruments Eligible to Compose Capital | 0 | 7,784 | 10,633 |
Marketable debt securities | 33,627 | 18,421 | 27,344 |
Trading derivatives | 9,673 | 12,243 | 7,123 |
Short positions | 0 | 0 | 0 |
Total | 122,461 | 122,722 | 131,635 |
Above 5 years | |||
Interest-earning assets: | |||
Financial Assets Held For Trading | 52,584 | 18,848 | 25,573 |
Debt instruments | 50,080 | 16,801 | 20,991 |
Trading derivatives | 2,504 | 2,046 | 4,582 |
Available-For-Sale Financial Assets | 0 | 50,329 | 29,854 |
Debt instruments | 0 | 50,329 | 29,854 |
Other Financial Assets At Fair Value Through Profit Or Loss | 6,037 | 1,994 | 1,824 |
Debt instruments | 6,037 | 1,994 | 1,824 |
Non-Current Assets Held For Sale | 5,119 | 9,573 | 9,979 |
Reserves from Brazilian Central Bank | 0 | 0 | 0 |
Loans and Receivables | 85,637 | 84,560 | 82,770 |
Total | 149,377 | 165,304 | 150,000 |
Interest-bearing liabilities: | |||
Deposits from credit institutions | 8,819 | 8,191 | 7,444 |
Subordinated Debts / Debt Instruments Eligible to Compose Capital | 9,687 | 0 | 0 |
Marketable debt securities | 9,717 | 866 | 521 |
Trading derivatives | 3,322 | 2,285 | 4,167 |
Short positions | 0 | 0 | 0 |
Total | R$ 31545 | R$ 11342 | R$ 12132 |
Risk management (Details 9)
Risk management (Details 9) - BRL (R$) R$ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Sensibilities [Abstract] | |||
Net Interest Margin | R$ 200 | R$ 378 | R$ 385 |
Market Value of Equity | 1,861 | 2,066 | 1,680 |
Value at Risk - Balance | |||
VaR | R$ 1744 | R$ 1380 | R$ 804 |
Risk management (Details 10)
Risk management (Details 10) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018BRL (R$) | ||
Scenario 1 | Interest Rate - Reais | ||
Trading portfolio | ||
Risk Factor | R$ 752 | |
Description | Exposures subject to changes in interest fixed rate | |
Scenario 1 | Coupon Interest Rate | ||
Trading portfolio | ||
Risk Factor | R$ 1091 | |
Description | Exposures subject to changes in coupon rate of interest rate | |
Scenario 1 | Inflation | ||
Trading portfolio | ||
Risk Factor | R$ 4344 | |
Description | Exposures subject to change in coupon rates of price indexes | |
Scenario 1 | Coupon - US Dollar | ||
Trading portfolio | ||
Risk Factor | R$ 2229 | |
Description | Exposures subject to changes in coupon US Dollar rate | |
Scenario 1 | Coupon - Other Currencies | ||
Trading portfolio | ||
Risk Factor | R$ 5030 | |
Description | Exposures subject to changes in coupon foreign currency rate | |
Scenario 1 | Foreign Currency | ||
Trading portfolio | ||
Risk Factor | R$ 10926 | |
Description | Exposures subject to foreign exchange | |
Scenario 1 | Eurobond/Treasury/Global | ||
Trading portfolio | ||
Risk Factor | R$ 328 | |
Description | Exposures subject to changes in interest rate negotiated roles in international market | |
Scenario 1 | Shares and Indexes | ||
Trading portfolio | ||
Risk Factor | R$ 3028 | |
Description | Exposures subject to change in shares price | |
Scenario 1 | Commodities | ||
Trading portfolio | ||
Risk Factor | R$ 2 | |
Description | Exposures subject to change in commodities' prices | |
Scenario 1 | Total | ||
Trading portfolio | ||
Risk Factor | R$ 27730 | [1] |
Scenario 2 | Interest Rate - Reais | ||
Trading portfolio | ||
Risk Factor | R$ 11854 | |
Description | Exposures subject to changes in interest fixed rate | |
Scenario 2 | Coupon Interest Rate | ||
Trading portfolio | ||
Risk Factor | R$ 15747 | |
Description | Exposures subject to changes in coupon rate of interest rate | |
Scenario 2 | Inflation | ||
Trading portfolio | ||
Risk Factor | R$ 45686 | |
Description | Exposures subject to change in coupon rates of price indexes | |
Scenario 2 | Coupon - US Dollar | ||
Trading portfolio | ||
Risk Factor | R$ 60518 | |
Description | Exposures subject to changes in coupon US Dollar rate | |
Scenario 2 | Coupon - Other Currencies | ||
Trading portfolio | ||
Risk Factor | R$ 5349 | |
Description | Exposures subject to changes in coupon foreign currency rate | |
Scenario 2 | Foreign Currency | ||
Trading portfolio | ||
Risk Factor | R$ 273156 | |
Description | Exposures subject to foreign exchange | |
Scenario 2 | Eurobond/Treasury/Global | ||
Trading portfolio | ||
Risk Factor | R$ 2138 | |
Description | Exposures subject to changes in interest rate negotiated roles in international market | |
Scenario 2 | Shares and Indexes | ||
Trading portfolio | ||
Risk Factor | R$ 75711 | |
Description | Exposures subject to change in shares price | |
Scenario 2 | Commodities | ||
Trading portfolio | ||
Risk Factor | R$ 42 | |
Description | Exposures subject to change in commodities' prices | |
Scenario 2 | Total | ||
Trading portfolio | ||
Risk Factor | R$ 490201 | [1] |
Scenario 3 | Interest Rate - Reais | ||
Trading portfolio | ||
Risk Factor | R$ 23708 | |
Description | Exposures subject to changes in interest fixed rate | |
Scenario 3 | Coupon Interest Rate | ||
Trading portfolio | ||
Risk Factor | R$ 31494 | |
Description | Exposures subject to changes in coupon rate of interest rate | |
Scenario 3 | Inflation | ||
Trading portfolio | ||
Risk Factor | R$ 91371 | |
Description | Exposures subject to change in coupon rates of price indexes | |
Scenario 3 | Coupon - US Dollar | ||
Trading portfolio | ||
Risk Factor | R$ 121036 | |
Description | Exposures subject to changes in coupon US Dollar rate | |
Scenario 3 | Coupon - Other Currencies | ||
Trading portfolio | ||
Risk Factor | R$ 10697 | |
Description | Exposures subject to changes in coupon foreign currency rate | |
Scenario 3 | Foreign Currency | ||
Trading portfolio | ||
Risk Factor | R$ 546313 | |
Description | Exposures subject to foreign exchange | |
Scenario 3 | Eurobond/Treasury/Global | ||
Trading portfolio | ||
Risk Factor | R$ 4277 | |
Description | Exposures subject to changes in interest rate negotiated roles in international market | |
Scenario 3 | Shares and Indexes | ||
Trading portfolio | ||
Risk Factor | R$ 151422 | |
Description | Exposures subject to change in shares price | |
Scenario 3 | Commodities | ||
Trading portfolio | ||
Risk Factor | R$ 84 | |
Description | Exposures subject to change in commodities' prices | |
Scenario 3 | Total | ||
Trading portfolio | ||
Risk Factor | R$ 980402 | [1] |
[1] | Amounts net of taxes. |
Risk management (Details 11)
Risk management (Details 11) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2018BRL (R$) | ||
Scenario 1 | Interest Rate - Reais | ||
Portfolio Banking | ||
Risk Factor | R$ 48019 | |
Description | Exposures subject to changes in interest fixed rate | |
Scenario 1 | TR and Long-Term Interest Rate - (TJLP) | ||
Portfolio Banking | ||
Risk Factor | R$ 22042 | |
Description | Exposures subject to changes in Exchange of TR in TJLP | |
Scenario 1 | Inflation | ||
Portfolio Banking | ||
Risk Factor | R$ 37400 | |
Description | Exposures subject to change in coupon rates of price indexes | |
Scenario 1 | Coupon - US Dollar | ||
Portfolio Banking | ||
Risk Factor | R$ 2721 | |
Description | Exposures subject to changes in coupon US Dollar rate | |
Scenario 1 | Coupon - Other Currencies | ||
Portfolio Banking | ||
Risk Factor | R$ 4241 | |
Description | Exposures subject to changes in coupon foreign currency rate | |
Scenario 1 | Interest Rate Markets International | ||
Portfolio Banking | ||
Risk Factor | R$ 3692 | |
Description | Exposures subject to changes in interest rate negotiated roles in international market | |
Scenario 1 | Foreign Currency | ||
Portfolio Banking | ||
Risk Factor | R$ 2513 | |
Description | Exposures subject to Foreign Exchange | |
Scenario 1 | Total | ||
Portfolio Banking | ||
Risk Factor | R$ 120628 | [1] |
Scenario 2 | Interest Rate - Reais | ||
Portfolio Banking | ||
Risk Factor | R$ 821285 | |
Description | Exposures subject to changes in interest fixed rate | |
Scenario 2 | TR and Long-Term Interest Rate - (TJLP) | ||
Portfolio Banking | ||
Risk Factor | R$ 364231 | |
Description | Exposures subject to changes in Exchange of TR in TJLP | |
Scenario 2 | Inflation | ||
Portfolio Banking | ||
Risk Factor | R$ 475444 | |
Description | Exposures subject to change in coupon rates of price indexes | |
Scenario 2 | Coupon - US Dollar | ||
Portfolio Banking | ||
Risk Factor | R$ 43693 | |
Description | Exposures subject to changes in coupon US Dollar rate | |
Scenario 2 | Coupon - Other Currencies | ||
Portfolio Banking | ||
Risk Factor | R$ 63970 | |
Description | Exposures subject to changes in coupon foreign currency rate | |
Scenario 2 | Interest Rate Markets International | ||
Portfolio Banking | ||
Risk Factor | R$ 80702 | |
Description | Exposures subject to changes in interest rate negotiated roles in international market | |
Scenario 2 | Foreign Currency | ||
Portfolio Banking | ||
Risk Factor | R$ 62821 | |
Description | Exposures subject to Foreign Exchange | |
Scenario 2 | Total | ||
Portfolio Banking | ||
Risk Factor | R$ 1912146 | [1] |
Scenario 3 | Interest Rate - Reais | ||
Portfolio Banking | ||
Risk Factor | R$ 1636606 | |
Description | Exposures subject to changes in interest fixed rate | |
Scenario 3 | TR and Long-Term Interest Rate - (TJLP) | ||
Portfolio Banking | ||
Risk Factor | R$ 551674 | |
Description | Exposures subject to changes in Exchange of TR in TJLP | |
Scenario 3 | Inflation | ||
Portfolio Banking | ||
Risk Factor | R$ 948607 | |
Description | Exposures subject to change in coupon rates of price indexes | |
Scenario 3 | Coupon - US Dollar | ||
Portfolio Banking | ||
Risk Factor | R$ 71662 | |
Description | Exposures subject to changes in coupon US Dollar rate | |
Scenario 3 | Coupon - Other Currencies | ||
Portfolio Banking | ||
Risk Factor | R$ 128421 | |
Description | Exposures subject to changes in coupon foreign currency rate | |
Scenario 3 | Interest Rate Markets International | ||
Portfolio Banking | ||
Risk Factor | R$ 141043 | |
Description | Exposures subject to changes in interest rate negotiated roles in international market | |
Scenario 3 | Foreign Currency | ||
Portfolio Banking | ||
Risk Factor | R$ 125642 | |
Description | Exposures subject to Foreign Exchange | |
Scenario 3 | Total | ||
Portfolio Banking | ||
Risk Factor | R$ 3603655 | [1] |
[1] | Amounts net of taxes. |
Risk management (Details 12)
Risk management (Details 12) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Capital Risk Type [Abstract] | |||
Risk Type | New Methodology | New Methodology | New Methodology |
Credit | 72.00% | 70.00% | 62.00% |
Market | 2.00% | 4.00% | 5.00% |
ALM | 8.00% | 4.00% | 9.00% |
Business | 6.00% | 8.00% | 8.00% |
Operational | 5.00% | 6.00% | 6.00% |
Fixed Assets | 1.00% | 2.00% | 2.00% |
Intangible Assets | 0.00% | 1.00% | 1.00% |
Pension Funds | 1.00% | 1.00% | 1.00% |
Deferred Tax Assets | 5.00% | 4.00% | 6.00% |
TOTAL | 100.00% | 100.00% | 100.00% |
Risk management (Details 13)
Risk management (Details 13) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Reconciliation Of Shareholders Equity And Net Income Brgaap Vs Ifrs [Abstract] | ||||
Shareholders' equity attributed under to the Parent Brazilian GAAP | R$ 65233743 | R$ 59499954 | R$ 57771524 | |
IFRS adjustments, net of taxes, when applicable: | ||||
Reclassification of financial instruments at fair value through profit or loss | [1] | 8,344 | 18,301 | 643 |
Reclassification of available-for-sale financial instruments | [2] | 0 | 34,818 | 23,180 |
Reclassification of fair value through other comprehensive income | [3] | 72,980 | ||
Impairment on loans and receivables | [4] | 0 | (71,091) | 124,787 |
Impairment of financial assets measured at amortized cost | [4] | (1,483,043) | 0 | 0 |
Remensurations, Debt instruments, due to reclassifications IFRS 9 | 26,274 | 0 | 0 | |
Category transfers - IAS 39 | [5] | 0 | 351,132 | 608,897 |
Category transfers - IFRS 9 | [5] | (619) | 0 | 0 |
Deferral of financial fees, commissions and inherent costs under effective interest rate method | [6] | 851,629 | 664,204 | 297,720 |
Reversal of goodwill amortization | [7] | 26,764,529 | 26,592,852 | 25,122,573 |
Realization on purchase price adjustments | [8] | 631,120 | 702,436 | 778,882 |
Recognition of fair value in the partial sale in subsidiaries | [9] | 112,052 | 112,052 | 112,052 |
Option for Acquisition of Equity Instrument | [10] | (1,323,994) | (1,287,240) | (1,017,000) |
Goodwill acquisition Santander Services (Santusa) | [11] | (269,158) | (298,978) | 0 |
Shareholders' equity - Tax Credit with realization over 10 years | 322,539 | 62,539 | 0 | |
Others | 56,479 | 269,728 | 263,797 | |
Shareholders' equity attributed to the parent under IFRS | 91,002,875 | 86,650,707 | 84,087,055 | |
Non-controlling interest under IFRS | 592,585 | 436,894 | 725,504 | |
Shareholders' equity (including non-controlling interest) under IFRS | 91,595,460 | 87,087,601 | 84,812,559 | |
Net income attributed to the Parent under Brazilian GAAP | 12,166,145 | 7,996,577 | 5,532,962 | |
IFRS adjustments, net of taxes, when applicable: | ||||
Reclassification of financial instruments at fair value through profit or loss | [1] | (11,974) | 18,775 | 7,960 |
Reclassification of available-for-sale financial instruments | [2] | 0 | (46,160) | (39,234) |
Reclassification of fair value through other comprehensive income | [3] | 28,419 | 0 | 0 |
Impairment on loans and receivables | [4] | 0 | (195,878) | (8,091) |
Impairment of financial assets measured at amortized cost | [4] | 140,557 | ||
Remensurations, Debt instruments, due to reclassifications IFRS 9 | (5,360) | |||
Category transfers - IAS 39 | [5] | 0 | (219,829) | (45,314) |
Category transfers - IFRS 9 | [5] | (16,195) | ||
Deferral of financial fees, commissions and inherent costs under effective interest rate method | [6] | 187,425 | 366,484 | 148,450 |
Reversal of goodwill amortization | [7] | 171,677 | 1,470,279 | 1,755,750 |
Realization on purchase price adjustments | [8] | (71,316) | (76,446) | (76,247) |
Option to Acquire Own Equity Instrument | [10] | (143,194) | (270,240) | 0 |
Goodwill acquisition Santander Services (Santusa) | [11] | 29,820 | 0 | 0 |
Others | (153,527) | (182,037) | 58,327 | |
Net income attributed to the parent under IFRS | 12,322,477 | 8,861,525 | 7,334,563 | |
Non-controlling interest under IFRS | 217,441 | 213,984 | 130,355 | |
Net income (including non-controlling interest) under IFRS | R$ 12539918 | R$ 9075509 | R$ 7464918 | |
[1] | Reclassification of financial instruments at fair value through profit or loss Under BRGAAP, all loans, financing and deposits are recorded at amortized cost. In IFRS, in accordance with IFRS 9 'Financial Instruments: Recognition and Measurement', financial assets may be measured at fair value and included in the category 'Other financial assets at fair value through profit or loss', in order to eliminate or significantly reduce accounting mismatches ( accounting mismatch) of recognition or measurement derived from the measurement of assets or liabilities or from the recognition of gains or losses on these assets / liabilities on a number of bases, which are managed and their performances valued at fair value. Accordingly, the Bank classified loans, financing and deposits that meet these parameters as 'fair value through profit or loss', as well as certain debt instruments classified as 'available for sale' in BRGAAP. The Bank opted for this classification base in IFRS, since it eliminates an accounting mismatch in the recognition of revenues and expenses. | |||
[2] | Reclassification of available-for-sale financial instruments According to the BRGAAP, the Bank registers some investments, for example, debt instruments initially measured at amortized cost and equity instruments at cost. At the time of this balance sheet, the management reviewed the managing strategy of its investments and according to Bacen Circular 3.068, the debt instruments were reclassified to 'trading' measured at fair value with changes in the income statement. According to the IFRS, the Bank is classifying this investments as available for sale measuring them at fair value with changes in 'other comprehensive income', in line with IAS 39 'Financial Instruments: Recognition and Measurement', which does not allow the reclassification of any financial instrument to fair value with changes in the income statement after the initial recognition. | |||
[3] | Reclassification of financial assets measured at fair value through other comprehensive income According to the BRGAAP, the Bank registers some investments, for example, debt instruments initially measured at amortized cost and equity instruments at cost. At the time of this balance sheet, the management reviewed the managing strategy of its investments and according to Bacen Circular 3.068, the debt instruments were reclassified to 'trading' measured at fair value with changes in the income statement. According to the IFRS, the Bank is classifying this investments as financial assets measured at fair value through other comprehensive income them at fair value with changes in 'other comprehensive income', in line with IFRS 9 'Financial Instruments ', which does not allow the reclassification of any financial instrument to fair value with changes in the income statement after the initial recognition. | |||
[4] | Impairment on loans and receivables and financial assets measured at amortized cost: In 2018, refers to the adjustment resulting from the estimate of the expected loss and losses on the portfolio of loans and receivables subject to impairment, loan commitments to be released and financial guarantee contracts, which was determined based on the criteria described in the accounting practice and compliance in the history of impairment and other circumstances known at the time of the evaluation, in accordance with the guidance provided by IAS 39 and IFRS 9 (in 2016 and 2017 refer to the resulting adjustment of the estimate of loss incurred in accordance with IAS 39, normative then effective.) 'Financial Instruments: Recognition and Measurement'. These criteria differ in certain aspects from the criteria adopted by BRGAAP, which use certain regulatory limits defined by the Central Bank (Bacen), in addition to the difference in the scope of calculation of these losses, which for the purposes of IFRS considers assets other than those In the Financial Statements under IFRS, this effect considers the impact related to the provisions of certain debt instruments, which for the purposes of BRGAAP are treated as Securities. | |||
[5] | Categories of financial assets As detailed in the accounting practices note, IFRS9 provides for the definition of the business models associated with each portfolio, as well as the performance of the SPPI test - if the returns of that asset are exclusively principal and interest, for classification in the categories of financial assets. BRGAAP provides for certain differences in the categorization of these financial assets, as well as establishing as an indicator the Management's intention for classification to be made. The criteria for reclassification between categories are also different between the two accounting practices. | |||
[6] | Deferral of financial fees, commissions and other costs under effective interest rate method: Under IFRS, financial fees, commissions and other costs that are integral part of effective interest rate of financial instruments measured at amortized cost are recognized in the income statement over the term of the corresponding contracts. Under BRGAAP these fees and expenses are recognized directly as income when received or paid. | |||
[7] | Reversal of goodwill amortization: Under BRGAAP, goodwill is systematically amortized over a period of up to 10 years, subject to the impairment test at least once a year or in a shorter period, in the event of any additional evidence. Under IFRS, in accordance with IAS 38 'Intangible Assets', goodwill is not amortized, but instead, is tested for impairment, at least annually, and whenever there is an indication that the goodwill may be impaired. The tax amortization of goodwill of Banco ABN Amro Real SA represents a difference between book and tax basis of a permanent nature and definitive as the possibility of future use of resources to settle a tax liability is considered remote by management, supported by the opinion of expert external advisors. The tax amortization of goodwill is permanent and definitive, and therefore does not apply to the recognition of a deferred tax liability in accordance with IAS 12, on temporary differences. | |||
[8] | Realization on purchase price adjustments: As part of the allocation of the purchase price related to the acquisition of Banco Real, following the requirements of IFRS 3, the Bank has recognized the assets and liabilities of the acquiree to fair value, including identifiable intangible assets with finite lives. Under BRGAAP, in a business combination, the assets and liabilities are kept at their book value. This purchase price adjustment relates substantially to the allocation related to the value of assets in the loan portfolio. The initial recognition of value of the loans at fair value, adjustment to the yield curve of the loan portfolio in comparison to its nominal value, which is recognized by its average realization period. The amortization of the identified intangible assets with finite lives over their estimated useful lives. | |||
[9] | Recognition of fair value in the partial disposal of investments in subsidiaries Under IFRS 10 'Consolidated Financial Statements' on partial disposal of a permanent investment when control is lost, the fair value is recognized over the remaining portion is remeasured at its fair value, the effect of this update being recognized in result (Webmotors). Under BRGAAP, this type of operation, ongoing participation is registered by its book value. | |||
[10] | Option for Acquisition of Equity Instrument Within the context of transaction, Banco Santander has granted to the members of Getnet S.A. and Banco Ole Consignado a put option over all shares of Getnet S.A. and Banco Ole Consignado held by them. The overall out in IAS 32, a financial liability was recognized for this commitment, with a specific charge in a heading in stockholders' equity in the amount of R$950 million and R$67 million, respectively. Subsequently, the options have been updated and their effect is recognized in income. | |||
[11] | Santander Servicos goodwill (Santusa) According to the IFRS 3 'Business Combination', when the owner acquires more shares or other equity instruments of an entity already controlled, it shall consider such amount as an equity reduction. According to the BRGAAP this amount shall be registered in the asset as goodwill or discount on the acquisition f the investment, which is the difference between the acquision cost and the equity amount of the shares. |
Risk management (Details 14)
Risk management (Details 14) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Appendix II Statements Of Value Added [Abstract] | |||
Interest and similar income | R$ 70478393 | R$ 71418349 | R$ 77146077 |
Net fee and commission income | 14,132,159 | 12,721,868 | 10,977,596 |
Impairment losses on financial assets (net) | (12,713,435) | (12,338,300) | (13,301,445) |
Other income and expense | (6,861,406) | (3,043,565) | (751,727) |
Interest expense and similar charges | (28,557,051) | (36,471,860) | (46,559,584) |
Third-party input | (7,219,152) | (6,728,881) | (5,804,939) |
Materials, energy and others | (544,237) | (495,913) | (510,961) |
Third-party services | (5,572,127) | (5,107,077) | (4,589,468) |
Impairment of assets | (508,310) | (456,711) | (114,321) |
Other | (594,478) | (669,180) | (590,189) |
Gross added value | 29,259,508 | 25,557,611 | 21,705,978 |
Retention | |||
Depreciation and amortization | (1,739,959) | (1,662,247) | (1,482,639) |
Added value produced | 27,519,549 | 23,895,364 | 20,223,339 |
Added value received from transfer | |||
Investments in affiliates and subsidiaries | 65,958 | 71,551 | 47,537 |
Added value to distribute | 27,585,507 | 23,966,915 | 20,270,876 |
Added value distribution | |||
Employee | R$ 8185896 | R$ 7908746 | R$ 7378374 |
Employee | 29.70% | 33.00% | 36.40% |
Compensation | R$ 5863584 | R$ 5795579 | R$ 5455374 |
Benefits | 1,534,560 | 1,421,910 | 1,397,711 |
Government severance indemnity funds for employees - FGTS | 448,699 | 413,871 | 352,939 |
Other | 339,053 | 277,386 | 172,350 |
Taxes | R$ 5813381 | R$ 6131544 | R$ 4659989 |
Taxes | 21.10% | 25.60% | 23.00% |
Federal | R$ 4864176 | R$ 5481969 | R$ 4101629 |
State | 224 | 1,260 | 717 |
Municipal | 948,981 | 648,315 | 557,643 |
Compensation of third-party capital - rental | R$ 786312 | R$ 788577 | R$ 767595 |
Compensation of third-party capital - rental | 2.90% | 3.30% | 3.80% |
Remuneration of interest on capital | R$ 12799918 | R$ 9138048 | R$ 7464918 |
Remuneration of interest on capital | 46.40% | 38.10% | 36.80% |
Dividends and interest on capital | R$ 6600000 | R$ 6300000 | R$ 4550000 |
Profit Reinvestment | 5,982,477 | 2,624,064 | 2,784,563 |
Profit (loss) attributable to non-controlling interests | 217,441 | 213,984 | 130,355 |
Total | R$ 27585507 | R$ 23966915 | R$ 20270876 |
Total | 100.00% | 100.00% | 100.00% |
Risk management (Details Text)
Risk management (Details Text) R$ in Millions | Dec. 31, 2018BRL (R$) |
Financial Intermediation Activities [Abstract] | |
Average VaR from the Bank's tranding portfolio | R$ 30.3 |
Interest rate risk - convertible currencies | |
Sensitivity of the net interest margin at one year | 200 |
Sensitivity market value of equity | 1,861 |
Interest rate risk - quantitative risk analisys | |
Sensitivity of the net interest margin - maximum | 292 |
Sensitivity market value of equity - maximum | R$ 1981.0 |