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6-K Filing
Banco Santander (BSBR) 6-KDF Brgaap 2Q14
Filed: 31 Jul 14, 12:00am
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes _______ No ___X____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes _______ No ___X____
Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes _______ No ___X____
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
(Convenience Translation into English from the Original Previously Issued in Portuguese) | |||||||||||||
![]() | BANCO SANTANDER (BRASIL) S.A. AND SUBSIDIARIES MANAGEMENT REPORTS | ||||||||||||
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Dear Stockholders: |
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We present herein the Performance Review to Individual and Consolidated Financial Statements of Banco Santander (Brasil) S.A. (Banco Santander or Bank) related to the period ended June 30, 2014, prepared in accordance with accounting practices set by Brazilian Corporate Law and the standards of the National Monetary Council (CMN), the Central Bank of Brazil (Bacen) and document template provided in the Accounting National Financial System Institutions (Cosif) and the Exchange Comission (CVM), that does not conflict with the rules of Bacen. | |||||||||||||
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These consolidated interim financial statements prepared and are presented in accordance with IAS 34, Interim Financial Reporting, from 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 IFRIC) (IFRS) for the period ended June 30, 2014 were be disclosed legal deadline, at the websitewww.santander.com.br/ri. | |||||||||||||
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1) Macroeconomic Environment | |||||||||||||
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The 1Q14 GDP performance (latest figures released in June) grew by 1.9% over the same period in 2013. Thus, the GDP growth in the last 12 months ended in March was 2.5%. First-quarter investments fell by 2.1% YoY, after registering growth in the four quarters of 2013. Household consumption present a lower expansion by 2.2% YoY in 1Q14. On the supply side, the main highlight was services sector, which increased 2.0% YoY in 1Q14. The industrial GDP grew 0.8% YoY in 1Q14. Finally, agriculture GDP increased 2.8% in 1Q14 over the same period in 2013, which can be explained by the performance of some products that have relevant harvest in this period and productivity. However, the data available for the 2Q14 suggests further slowing in the economic growth. | |||||||||||||
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Consumer prices, measured by the IPCA index, increased by 6.5% in the 12 months through June, 2014, lower than the 6.7% observed in June, 2013. Services continued to pressure inflation, driven by increasing labor costs, although this was partially offset by regulated prices, which remained below the target of 4.5%. In this context, the Central Bank’s Monetary Policy Committee (Copom) interrupted the tightening of the monetary policy, from April of 2013 to April of 2014, and they kept the basic interest rate (Selic) in 11% p.a. at its July 16th, 2014 meeting. This is already impacting bank lending rates. In June, the average non-earmarked rate for loans to individuals stood at 43.0% p.a. versus 34.8% p.a. in June 2013. Outstanding credit grew 11.8% YoY in the 12 months through May, reaching R$2.83 trillion, or 56.3% of GDP, still driven by mortgage lending, which grew by 30.0% YoY in the same period, well above the other credit lines. | |||||||||||||
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There is a depreciation trend in the Brazilian currency, considering the current gradual recovery of advanced countries. Exports slightly decreased by 0.6% in the 12 months through June/14, reaching US$ 238.3 billion, while imports rose 2.0%, reaching US$ 235.1 billion. Despite the strong growth of imports, the trade surplus posted US$3.1billion in the same period. | |||||||||||||
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The current account deficit amounted to US$ 81.2 billion in the 12 months ending in June, while foreign direct investments (FDI) totaled US$ 63.3 billion. The exchange rate ended June/14 at R$ 2.20/US$. | |||||||||||||
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Regarding fiscal accounts, sluggish activity coupled with tax breaks have weighed negatively on tax revenues, and the primary budget reached a surplus of 1.52% of GDP in the 12 months through May/14. In the same period, nominal deficit reached 3.5% of GDP. The net public sector debt closed May at 34.6% of GDP. Gross public debt reached 58.0% of GDP in the same period. | |||||||||||||
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2) Performance | |||||||||||||
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2.1) Net Income | |||||||||||||
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CONSOLIDATED INCOME STATEMENTS (R$ Millions) | 1S14 |
| 1S13 |
| annual changes % | 2Q14 |
| 1Q14 |
| period changes % | |||
Financial Income | 27,756.3 |
| 26,968.8 |
| 2.92 |
| 12,770.1 |
| 14,986.2 |
| (14.79) | ||
Financial Expenses | (18,001.1) |
| (19,861.0) |
| (9.36) |
| (8,155.1) |
| (9,846.0) |
| (17.17) | ||
Gross Profit From Financial Operations | 9,755.2 |
| 7,107.8 |
| 37.25 |
| 4,615.0 |
| 5,140.2 |
| (10.22) | ||
Other Operating (Expenses) Income | (6,877.6) |
| (6,736.9) |
| 2.09 |
| (3,265.2) |
| (3,612.4) |
| (9.61) | ||
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Operating Income | 2,877.6 |
| 370.9 |
| 675.84 |
| 1,349.8 |
| 1,527.8 |
| (11.65) | ||
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Non-Operating Income | 45.4 |
| 199.3 |
| (77.22) |
| 36.6 |
| 8.8 |
| 318.09 | ||
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Income Before Taxes on Income and Profit Sharing | 2,923.0 |
| 570.2 |
| 412.63 |
| 1,386.4 |
| 1,536.6 |
| (9.77) | ||
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Income Tax and Social Contribution | (1,240.9) |
| 1,151.4 |
| (207.77) |
| (553.5) |
| (687.4) |
| (19.47) | ||
Profit Sharing | (552.8) |
| (473.9) |
| 16.65 |
| (275.1) |
| (277.7) |
| (0.91) | ||
Minority Interest | (83.4) |
| (137.7) |
| (39.43) |
| (30.3) |
| (53.1) |
| (42.97) | ||
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NET INCOME | 1,045.9 |
| 1,110.0 |
| (5.77) |
| 527.6 |
| 518.4 |
| 1.76 | ||
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The net income of Banco Santander presented in the period ended June 30, 2014 a decrese of 5.8%. Excluding amortization expense of goodwill of R$1,818.5 million for both periods, the consolidated net income is R$2,864.4 million in June 2014 and R$2,928.5 million in June 2013. | |||||||||||||
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The total expenses, including personnel expenses, others administrative expenses and profit sharing expenses, excluding the effects of goodwill amortization grew 1.1% in 2014 compared with June 2013, while personnel and profit sharing expenses increased 1.7% and other administrative expenses increased 1.0% YoY. | |||||||||||||
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The consolidated result with loans and leasing operations, which includes interest income, exchange rate changes, recovery of loans previously written off and others, decreased 9.1% YoY. | |||||||||||||
1
The growth in expenses of Income Tax and Social Contribution on Net Income, comparing the first half of 2013 and the first half of 2014, mainly due to tax effects of exchange rate changes on foreign investment in subsidiary and controlled.Moreover, in the first half of 2014, there was no declaration of interest on capital (R$300 million in March 2013). | ||||||||||||||||
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2.2) Assets and Liabilities | ||||||||||||||||
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CONSOLIDATED BALANCE SHEETS (R$ Millions) | Jun/14 |
| Jun/13 |
| annual changes % | Mar/14 |
| changes in period % | Dec/13 | |||||||
Current and Long-Term Assets |
| 476,749.3 |
| 446,973.6 |
| 6.66 |
| 475,804.8 |
| 0.20 |
| 465,777.2 | ||||
Permanent Assets |
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| 17,450.7 |
| 21,076.4 |
| -17.20 |
| 18,807.1 |
| -7.21 |
| 20,088.4 | ||
TOTAL ASSETS |
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| 494,200.0 |
| 468,050.0 |
| 5.59 |
| 494,611.9 |
| -0.08 |
| 485,865.6 | ||
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Current and Long-Term Liabilities | 434,864.5 |
| 402,911.6 |
| 7.93 |
| 436,052.3 |
| -0.27 |
| 421,750.8 | |||||
Deferred Income |
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| 335.2 |
| 251.7 |
| 33.17 |
| 315.1 |
| 6.38 |
| 308.2 | ||
Minority Interest |
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| 997.5 |
| 923.5 |
| 8.01 |
| 1,040.3 |
| -4.11 |
| 987.4 | ||
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Stockholders' Equity |
| 58,002.8 |
| 63,963.2 |
| -9.32 |
| 57,204.1 |
| 1.40 |
| 62,819.2 | ||||
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TOTAL LIABILITIES |
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| 494,200.0 |
| 468,050.0 |
| 5.59 |
| 494,611.9 |
| -0.08 |
| 485,865.6 | ||
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The total assets presented a increase of 5.6% YoY, and they are mainly represented by: R$226,362.7 million of loan portfolio, R$103,861.8 million of securities and derivative financial instruments, R$32,501.6 million of interbank investments, and R$45,327.7 million of interbank accounts. On June 2013 amounts R$218,053.3 million, R$77,534.0 million, R$44,342.0 million, and R$34,317.5 million respectively. | ||||||||||||||||
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FUNDING BY CUSTOMERS (R$ Millions) | Jun/14 |
| Jun/13 |
| changes in period % | Mar/14 |
| changes annual % | Dec/13 | |||||||
Demand Deposits |
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| 14,635 |
| 13,385 |
| 9.34 |
| 14,356 |
| 1.94 |
| 15,605 | ||
Saving Deposits |
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| 35,779 |
| 29,293 |
| 22.14 |
| 35,023 |
| 2.16 |
| 33,589 | ||
Time Deposits |
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| 79,532 |
| 79,865 |
| -0.42 |
| 79,891 |
| -0.45 |
| 81,100 | ||
Debentures/LCI/LCA¹ |
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| 67,222 |
| 51,990 |
| 29.30 |
| 63,698 |
| 5.53 |
| 60,921 | ||
Treasury Bills |
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| 33,407 |
| 30,353 |
| 10.06 |
| 30,498 |
| 9.54 |
| 30,854 | ||
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Total Funding |
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| 230,575 |
| 204,886 |
| 12.54 |
| 223,466 |
| 3.18 |
| 222,069 | ||
1. Repurchase Commitments backed in Debentures, Real Estate Credit Notes and Agribusiness Credit Notes. | ||||||||||||||||
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The total of funding resources increased 12.5%, compared with June 2013. The highlight was the YoY growth of 29.3% on Debentures/LCI/LCA and 22.1% on Saving Deposits. | ||||||||||||||||
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2.3) Loan Portfolio | ||||||||||||||||
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MANAGEMENT DISCLOSURE OF LOAN PORTFOLIO BY SEGMENT (R$ Million) | Jun/14 |
| Jun/13 |
| changes in period % | Mar/14 |
| changes annual % | Dec/13 | |||||||
Individuals1 |
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| 75,873 |
| 72,258 |
| 5.00 |
| 75,588 |
| 0.38 |
| 75,522 | ||
Consumer Finance (Vehicles and Other Assets) |
| 36,851 |
| 37,021 |
| -0.46 |
| 37,421 |
| -1.52 |
| 37,849 | ||||
Small and Medium-sized Entities |
| 31,264 |
| 35,582 |
| -12.14 |
| 31,873 |
| -1.91 |
| 33,711 | ||||
Large-sized Entity |
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| 82,375 |
| 73,192 |
| 12.55 |
| 79,130 |
| 4.10 |
| 80,400 | ||
Total Loan portfolio (gross) |
| 226,363 |
| 218,053 |
| 3.81 |
| 224,012 |
| 1.05 |
| 227,482 | ||||
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Allowance for Loan Losses |
| (14,655) |
| (15,032) |
| -2.51 |
| (15,050) |
| -2.62 |
| (14,999) | ||||
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Total Loan portfolio (net) |
| 211,708 |
| 203,021 |
| 4.28 |
| 208,962 |
| 1.31 |
| 212,483 | ||||
1. Including the loans to individual in the consumer finance segment, the individual portfolio reached R$105,298.0; R$101,557.4 on June 30, 2014 and 2013, respectively. | ||||||||||||||||
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On June 30, 2014, the loan portfolio (gorss) presented a growth of 3.8% compared to June 2013. In the YoY evolution the higher growth was 12.5% of Large-sized Entity. | ||||||||||||||||
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Delinquency |
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The delinquency ratio non-performing loans more than 90 days reached 4.1% of the loan portfolio, showing an decrease of 1.1p.p. in twelve months. | ||||||||||||||||
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Allowance for loan losses represents 6.5% of the loan portfolio in June 2014 and 6.9% in June 2013. | ||||||||||||||||
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The allowance for loan losses, net of revenues with recovery of loans previously written off in the period ended June 30, 2014 is R$4,797.1 million and R$6,573.5 million in 2013, YoY, the expense decreased 27.0%. | ||||||||||||||||
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2
2.4) Stockholders’ Equity | ||||||||||||||||
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In June 2014, Banco Santander consolidated stockholders’ equity presented a fall of 9.3% YoY and a grow of 1.4% on quarter. | ||||||||||||||||
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The evolution of stockholders’ equity is due, mainly, Regulatory Capital Otimization Plan (Note 23.f). The PR Optimization Plan has the following items: (i) the redistribution of equity to the shareholders of Banco Santander in the total amount of R$6 billion, with no reduction in the number of shares; (ii) the issuance abroad of capital instruments to compose Tier I and Tier II of Banco Santander’s regulatory capital and; (iii) a bonus share program and an adjustment in the composition of the Units, followed by a reverse share split (inplit), with the purpose of eliminating trading in cents. | ||||||||||||||||
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In first half of 2014, 4.417.000 Units were acquired and 2.433.553 Units paid as Bonus and Long-Term Incentive Plan – Local. The accumulated balance of treasury Units on June 30, 2014, amounting to 18,674,191 Units (06/30/2013 – 8,226,716 Units) equivalent to R$192 millions (06/03/2013 – R$126 millions). The minimum, weighted average and maximum cost per Unit of the total number of treasury shares is, respectively, R$11.01, R$14.31 and R$18.52. In first half of 2014 were acquired 4.791.874 ADRs. The accumulated balance of ADRs acquired and held in treasury amounted 11.540.221 ADRs, in the current amount of R$160 millions (06/30/2013 - R$39 millions). The minimum, weighted average and maximum cost per ADR of the total number of treasury shares is, respectively, US$4.61, US$6.27 and US$10.21. The market value of these shares on June 30, 2014 was R$15.12 per Unit and US$6.92 per ADR. In the first quarter of 2014, due to the Optimization Plan PR, were also recorded issuing costs of R$0,2 million, totaling R$352 millions of treasury shares. | ||||||||||||||||
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In June 2014, were featured dividends of R$620 millions as shown below:
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DIVIDENDS AND INTEREST ON CAPITAL (R$ Millions) | Jun/14 |
| Jun/13 |
| Dec/13 | |||||||||||
Interest on capital |
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| - |
| 300.0 |
| 300.0 | ||
Interim Dividends |
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| 99.8 |
| 650.0 |
| 1,385.2 | ||
Intercalary Dividends |
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| 520.2 |
| - |
| 714.8 | ||
Total |
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| 620.0 |
| 650.0 |
| 2,400.0 |
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• Plan to Optimize the Capital Structure | ||||||||||||||||
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On September 26, 2013, the Company disclosed a Material Fact announcing that, in order to optimize its capital structure, the Board of Directors submitted a proposal to optimize the composition of Banco Santander’s regulatory capital to the shareholders for their approval ("PR Optimization Plan"). The aim is to establish a more efficient capital structure, consistent with the new prudent capital rules and aligned with Banco Santander’s business plan and asset growth. The PR Optimization Plan has the following items: (i) the redistribution of equity to the shareholders of Banco Santander in the total amount of R$6,000,000, with no reduction in the number of shares; (ii) the issuance abroad of capital instruments to compose Tier I and Tier II of Banco Santander’s regulatory capital and; (iii) a bonus share program and an adjustment in the composition of the Units, followed by a reverse share split (inplit), with the purpose of eliminating trading in cents. | ||||||||||||||||
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Equity Distributions | ||||||||||||||||
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On November 1st, 2013, the proposals for return of funds to shareholders was approved on Shareholders’ Meeting. In January 2014, conditions for effective recovery of resources (during the period of opposition from unsecured creditors, approval by the Bacen and filing the minutes of the meeting at the Junta Comercial do Estado de São Paulo - JUCESP). The Equity Distributions to shareholders occurred on January 29, 2014, and the Bank's shares and Units have been traded ex-rights to the Equity Distributions since January 15, 2014. | ||||||||||||||||
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Issuance of Notes | ||||||||||||||||
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On January 14, 2014 the Board of Directors approved the issuance of notes outside Brazil, in US Dollars, amounting to R$6 billion. The issuance of Notes held on January 29, 2014 having been fully paid by the shareholders of the Bank. | ||||||||||||||||
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The specific characteristics of the Notes issued to compose the Tier I are: (a) Notional: US$1,248 million, equivalent to R$3 billion, (b) Interest Rate: 7.375% p.a. (c) Maturity: The Tier I Notes shall be perpetual; (d) Frequency of interest payment: interest will be paid quarterly from April 29, 2014; (e) Discretion: Banco Santander can cancel the distribution of interest at any time, for an unlimited period, with no accumulation rights and this suspension shall not be considered as a default event; (f) Subordination: in the case of insolvency, the Notes' financial settlement is subordinated to all Tier II capital instruments. The specific characteristics of the Notes issued to form the Tier II are: (a) Notional: US$1,248 million, equivalent to R$3 billion (b) Interest Rate: 6.0% p.a. (c) Maturity: the Tier II Notes will mature on January 29, 2024, and (d) Frequency of interest payment: interest payable semi-annually from July 29, 2014. | ||||||||||||||||
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On April 15, 2014, the Bacen approved the issued notes to compose the Tier I and Tier II of Bank’s regulatory capital since the issuance date. | ||||||||||||||||
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All share and per share information has been retrospectively adjusted for all periods presented to reflect the impacts of the Share Bonus and Reverse Share Split transactions (Earnings Per Share,included in Consolidated Income Statements and notes 11.a and 15.c). | ||||||||||||||||
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3
Bonus and Gruping of Shares | ||||||||||||||||
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With the purposes of eliminating the trading in cents of SANB3 (common) and SANB4 (preferred) shares, increasing liquidity and reducing costs of transaction thereof, on March 18, 2014, our shareholders, in the extraordinary general meeting approved, (i) a bonus share of 19,002,100,957 preferred shares to our shareholders, at the ratio of 0.047619048 preferred shares for each common share (SANB3) or preferred share (SANB4), which results in bonus share of five (5) preferred shares for each Unit (SANB11), through the capitalization of reserves in the amount of R$171,799; and (ii) share reverse split (inplit) of the totality of our common shares and preferred shares in a ratio of 1:55, so that each fifty-five (55) common shares and fifty-five (55) preferred shares will henceforth correspond to one (1) common share and one (1) preferred share, respectively. As a result, each Unit (SANB11) will be comprised of one common share and one preferred share. | ||||||||||||||||
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On April 23, 2014 the Bank published Notice to Shareholders, in order to inform to the shareholders that the Bacen ratified, on April 22, 2014, the minutes of the EGM held on March 18, 2014, which approved a bonus share program and an adjustment in the composition of the Units, which implementation occurred on June 2, 2014. | ||||||||||||||||
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Voluntary Offer of Shares | ||||||||||||||||
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On April 29, 2014 the Company published Material Fact in order to inform that it was informed by its indirect controlling shareholder, Banco Santander, S.A., that the latter intends to launch a voluntary offer in Brazil and United States for acquisition of up to the totality of the shares of Santander Brazil that are not held by Santander Group, which represent approximately 25% of Santander Brasil’s share capital, with payment in shares of Santander Spain. As a result of the Transaction, Santander Brasil will continue to be a listed company, although it will change from the Level 2 (Nivel 2) of Corporate Governance of BM&FBovespa to the traditional segment of BM&FBovespa. | ||||||||||||||||
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On June 9, 2014, it was held EGM, which resolved on the following Agenda: (a) the exit of the Company from the special listing segment of BM&FBOVESPA, denominated Level 2 of Corporate Governance; and (b) the selection of the specialized firm NM Rothschild & Sons (Brazil) Ltda., to be hired to prepare a valuation report, called a “laudo”, based on the Company’s economic value, for purposes of the Exchange Offer and the consequent exit from Level 2. | ||||||||||||||||
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On June 13, 2014, the Company published Material Fact, in order to inform that the valuation report, called a “laudo”, prepared by N M Rothschild & Sons (Brasil) Ltda., dated June 10, 2014, to be used for purposes of the voluntary exchange offer of shares certificates, common or preferred shares issued by the Company for Brazilian Depositary Receipts or American Depositary Shares representing Banco Santander, S.A. ordinary shares, as previously detailed in the aforementioned Notice to the Market dated April 29, 2014, was duly filed on the date hereof by the Company with (i) the CVM; (ii) the BM&FBOVESPA S.A.; and (iii) the U.S. Securities and Exchange Commission - SEC. The Company informed as well, based on the information gave by Santander Spain to Santander Brasil, that an application for registration of the Exchange Offer was duly filed by Santander Spain with the CVM on the date hereof, pursuant to the terms of the aforementioned Instruction CVM 361/02. | ||||||||||||||||
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2.5) Basel Index | ||||||||||||||||
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In March 2013, the Bacen issued the standards related to the definition of capital and regulatory capital requirements in order to implement the recommendations of the Basel Committee on Banking Supervision (Basel III). The main objectives are: (i) improve the ability of financial institutions to absorb shocks from the financial system or the other sectors of the economy, (ii) reduce the risk of contagion in the financial sector on the real sector of the economy, (iii) assist the maintaining financial stability, and (iv) promoting sustainable economic growth and (v) improve de risk management pratices, increase disclosure transparency. | ||||||||||||||||
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The implementation of the new Basel III rules was started from October 1, 2013; and on October 31, 2013, was issued a second set of rules that complement and enhance the first group. The implementation will be gradual and some of these changes became effective in December 2013; changes are related to the definition of capital. Among the changes, an important difference is the phase-in of capital deduction in the calculation of regulatory capital, which will have their full deduction until the year 2019 .
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The regulatory capital is measured based on the Basel Standardized Approach, as established by Bacen, and considers: (a) Credit Risks – capital requirement portion for exposed assets and credit commitments, both weighted by a risk factor, considering the risk of mitigation through the use of guarantees; (b) Market risks – capital requirement portions for exposures related to the fluctuations in foreign currency interest rates, price indices, and interest rates; the prices of commodities and shares classified in the trading portfolio; and interest rates not classified in the trading portfolio; and (c) Operational risks – requirement of a specific capital portion. | ||||||||||||||||
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Banco Santander, according to Bacen Letter 3.678/2013, quarterly disclose information relating to risk management and Regulatory Capital (PRE). A report with further details of the structure and methodology will be disclosed in the legal deadline, at the websitewww.santander.com.br/ri. | ||||||||||||||||
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BASEL INDEX % |
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| Jun/14 |
| Dec/13 |
| Jun/13 | ||
Basel Index - consolidated |
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| 17.9 |
| 19.2 |
| 21.5 | ||||
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4
2.6) Main Subsidiaries | ||||||||||||||||
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The table below presents the balances of total assets, net assets, net income and credit operations for the period ended March 31, 2014 the principal subsidiaries of Banco Santander portfolio:
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SUBSIDIARIES (R$ Millions) |
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| Total Assets | Stockholders' Equity | Net Income | Loan Portfolio (1) | |||||||||
Santander Leasing S.A. Arrendamento Mercantil |
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| 51,902.5 |
| 5,142.8 |
| 157.5 |
| 2,358.9 | ||||||
Aymoré Crédito, Financiamento e Investimento S.A. |
| 30,879.8 |
| 1,179.9 |
| 125.5 |
| 27,627.9 | ||||||||
Santander Brasil, Establecimiento Financiero de Credito, S.A. | 2,599.0 |
| 2,312.0 |
| 18.8 |
| 2,174.6 | |||||||||
Santander Corretora de Câmbio e Valores Mobiliários S.A | 780.8 |
| 376.8 |
| 19.6 |
| 1.1 | |||||||||
(1) Includes Leasing portfolio and other credits |
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3) Events | ||||||||||||||||
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3.1) Subsequent Events | ||||||||||||||||
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a) Investment in the iZettle do Brasil | ||||||||||||||||
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On July 18, 2014, Banco Santander now holds 50% of the total corporate capital of iZettle do Brasil Meios de Pagamento S.A. ("iZettle do Brasil”), through a capital contribution to the company in the amount of R$17 millions, which was authorized by the Brazilian Central Bank on June 3, 2014. | ||||||||||||||||
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iZettle do Brazil is a Swedish source company that operates in the payment mechanisms market, with the development and distribution of payment products and solutions. This partnership was made in the context of a global agreement in December 2012 between Banco Santander, S.A (Spain) and iZettle in Sweden in order to create a joint and coordinated action in markets where the Santander Group operates, among them: Spain, Brazil, the UK and Mexico. | ||||||||||||||||
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One of the solutions developed by iZettle allows merchants to accept card payments through smart phones or tablets, by using a free appliance to a card reader application, converting the smart phones or tablets into a POS (point of sale - terminal accepting credit cards / debit card). The goal of the partnership is to enable Banco Santander to operate in the Brazilian market of card payments with the focus on micro merchants and individuals with an innovative, secure and aggregate supply to a simple solution. | ||||||||||||||||
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b) Acquisition of Santander Getnet Serviços | ||||||||||||||||
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On April 7, 2014, it was announced to the market, through material fact, that Banco Santander and its controlled company, Santander Getnet Serviços para Meios de Pagamento Sociedade Anônima ("SGS"), executed a Share Purchase Agreement, on April 4, 2014, for the acquisition, by SGS, of 100% of the voting and total corporate capital of Getnet Tecnologia em Captura e Processamento de Transações H.U.A.H. S.A. ("Getnet"), a current partner of Banco Santander in developing acquiring services and card processing activities. | ||||||||||||||||
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The transaction will reinforce the strategy and the potential growth of our acquiring business, enabling (a) greater flexibility in managing the business, especially in terms of the necessary investments and the definitions regarding the commercial strategy to be adopted, (b) scale gains, reduction of costs per transaction and additional synergies expected from the integration of operational and commercial structures. | ||||||||||||||||
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According to the Share Purchase Agreement, the closing and implementation date of the acquisition is subject to verification of certain usual precedent conditions for similar transactions. All the conditions were approved by the regulators, including the prior approval by the Administrative Economic Defense Council (CADE) on June 3, 2014, and by the Brazilian Central Bank on July 23, 2014. On July 31, 2014 Banco Santander intends to conclude the Getnet acquisition and the corporate restructuring indicated on the material fact, in which Banco Santander will own 88.5% of the total corporate capital of SGS. | ||||||||||||||||
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c) New Shareholders' Agreement of Tecnologia Bancária S.A. (Tecban) |
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On 18 July 2014 it was published a Notice to the Market with a view to inform that the country’s leading retail banks, among them Banco Santander, by means of one of its subsidiaries, (“Shareholders”), executed on july 17, 2014 a new Shareholders’ Agreement of Tecban (“New Shareholders’ Agreement”). The New Shareholders’ Agreement establishes that, within approximately 4 years from its effective date, the Shareholders shall have replaced part of their own external-access Automated Teller Machines (“ATMs”) with ATMs from Rede Banco24Horas, which are and will continue to be managed by Tecban, thus enhancing the efficiency, quality and points of services to their clients. The effectiveness of the Shareholders’ Agreement is subject to certain conditions precedent, among which its approval by the competent regulatory body. | ||||||||||||||||
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d) Investment Agreement between Banco Santander and Banco Bonsucesso S.A. (Banco Bonsucesso) | ||||||||||||||||
On July 30, 2014 Banco Santander, through its controlled company Aymore CFI, and Banco Bonsucesso entered into an Investment Agreement whereby agreed to form an association in payroll credit card loan segment and payroll loans ("JV"). | ||||||||||||||||
Once all the precedent conditions to complete the transaction are verified, including the prior approval of the regulatory authorities, Banco Bonsucesso will transfer to the JV the payroll loan business and payroll credit card loan, and Aymore will subscribe and pay shares representing 60% of the total and voting capital of the JV after the capital increase by the amount of R $ 460 million, becoming the controlling shareholder of the JV. Banco Bonsucesso will own the remaining portion of its share capital (40%). |
5
• Corporate Restructuring | ||||||||||||||||
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We implemented various social movements in order to reorganize the operations and activities of entities according to the business plan of the Banco Santander: | ||||||||||||||||
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a) Sale of Santander Securities Services Brasil DTVM S.A. (new denomination of CRV Distribuidora de Títulos e Valores Mobiliários S.A.) | ||||||||||||||||
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On June 19, 2014, the Company published Notice to the Market, in order to inform to the shareholders that preliminary documents were executed containing the main terms and conditions related to the sale of the operation of qualified custody business, currently performed by Santander Brazil, and all of the shares issued by Santander Securities Services Brasil Distribuidora de Títulos e Valores Mobiliários S.A. (current corporate name of CRV Distribuidora de Títulos e Valores Mobiliários S.A., subject to the approval of the Central Bank of Brazil – BACEN), a subsidiary of Santander Brazil. The Transaction is carried out within the context of an alliance abroad, among Banco Santander, S.A., funds of Warburg Pincus LLC, a company leader in the private equity sector, and the Singapore sovereign fund Temasek, involving the qualified custody business. Pursuant to the terms of the alliance, Santander Spain will hold 50% of a holding company that will integrate the custody divisions. | ||||||||||||||||
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The conclusion of of the sale is subject to the satisfaction of certain customary conditions precedent for similar transactions, including the conclusion of definitive agreements and obtaining the necessary authorizations. | ||||||||||||||||
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b) Sale of the Investment Fund Management and Managed Portfolio Operations, currently developed by Santander Brasil Asset Management Distribuidora de Títulos e Valores Mobiliários S.A. (Santander Brasil Asset) | ||||||||||||||||
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On December 17, 2013, was concluded the operation involving the sale of its asset management business, by Banco Santander current developed by Santander Brasil Asset ("Transaction"), as informed in the Material Fact dated May 30, 2013, the Transaction falls within the context of a partnership abroad between Banco Santander Spain and the world’s leading private equity companies, Warburg Pincus and General Atlantic., which aims to promote the global growth of its unit management of third party funds, as relevant Fact as of May 30, 2013. This operation generated a gain to Banco Santander of R$2,008 million before taxes. | ||||||||||||||||
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Within the scope of the Transaction, Banco Santander disposal all Santander Brasil Asset shares, of which, during Transaction, the asset management activity then performed by Santander Brasil Asset, was segregated from third-party fund allocation activity into a new asset manager created for that purposes (“Asset Manager”). | ||||||||||||||||
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As part of the Transaction, was entered into between the Asset Manager and Banco Santander a trade agreement establishing the general rules for the management and distribution of products and services to Banco Santander's customers. Banco Santander will remain as manager and dispenser of funds, receiving remuneration consistent with market practices. | ||||||||||||||||
6
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c) Segregation of equity investments in companies that provide services complementary to those provided by financial institutions | ||||||||||||||||
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Aiming to segregate the equity investments in entities that provide complementary services to the financial services Banco Santander, were made the following acts: | ||||||||||||||||
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• Partial spin-off of Santander Participações S.A. (Santander Participações, current corporate name of Santander Advisory Services S.A.), based version of the spun-off assets to Santander S.A. Serviços Técnicos, Administrativos e de Corretagem de Seguros (Santander Serviços) (Partial Spin-Off), approved by shareholders in the meeting held on December 31, 2012. The spun-off assets corresponded to investments in Santander Serviços and Webmotors S.A. The Partial Spin-off took place through the transfer of net assets of Santander Participações to the capital of Santander Serviços, based on the audited balance sheet on the November 30, 2012. Equity changes that occur between the base date of such balance sheet and the execution of the Partial Spin-off were recognized and recorded directly into Santander Serviços; | ||||||||||||||||
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• Capital increase in Santander Serviços on December 31, 2012 in the amounts of R$371 million, with the issuance of 113,803,680,982 common shares, fully subscribed and paid by Santusa Holding, S.L. (Santusa) in Spain investment company controlled by Banco Santander Spain. After such transaction, Santander Serviços capital stock to be owned by Banco Santander and Santusa, in the proportion of 60.65% and 39.35%, respectively; and | ||||||||||||||||
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• Acquisition by Santander Serviços shares of the company Tecnologia Bancária S.A. - Tecban (Tecban) held by Santusa as Sale and Purchase Agreement entered into between the parties on January 21, 2013. The acquisition, corresponding to 20.82% of the share capital of Tecban, were approved by Bacen pursuant to Resolution 4.062/2012, and effective on March 27, 2013. | ||||||||||||||||
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d) Incorporation of Santander Administradora de Consórcios Ltda (Santander Consórcios) by Santander Brasil Administradora de Consórcio (Santander Brasil Consórcio) | ||||||||||||||||
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At meetings held on July 25, 2012, the Board of Directors of Santander Consórcios and Santander Brasil Consórcio agreed and decided to submit for approval from their respective partners, the incorporation propose of Santander Consórcios (Incorporated) by Santander Brasil Consórcio (Incorporator) (Incorporation) which was approved at meeting of the Partners Incorporated and Incorporator on July 31, 2012. | ||||||||||||||||
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The merger will give through the transfer of the net book value of incorporated for the equity of the incorporator, based on the audited balance sheet at June 30, 2012. The equity variations occurred between the base date of that balance sheet and the effectiveness of the incorporation (the date of the Contract Amendment) will be recognized and recorded directly on the incorporator. | ||||||||||||||||
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On November 30, 2012 this process of incorporation was approved by the Bacen. | ||||||||||||||||
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e) Others Corporate Movements | ||||||||||||||||
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We also performed the following corporate actions: |
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• Constitution of “Atual Companhia Securitizadora de Créditos Financeiros”, under the meeting held on September 28, 2012, which aims at the acquisition of exclusive social credits from lending operations, financing and leasing; | ||||||||||||||||
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• Opening capital of Companhia de Crédito, Financiamento e Investimento RCI Brasil (CFI RCI Brasil) in the category “B”, pursuant to the EGM held on August 30, 2012, whose record was obtained with the CVM on November 27,2012; | ||||||||||||||||
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• Incorporation of all shares of issue Companhia de Arrendamento Mercantil RCI Brasil (RCI Brasil Leasing) by CFI RCI Brasil, on May 31, 2012, so that RCI Brasil Leasing became a wholly owned subsidiary of CFI RCI Brasil. On August 28, 2012 this process was approved by the Bacen; | ||||||||||||||||
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• Acquisition in January 21, 2013 by Webmotos, 100% of the share capital of Idéia Produções e Design Ltda- ME; | ||||||||||||||||
• Partial spin-off of Webmotors with reduction on capital on April 30, 2013 and subsequent formation of a new company named Webcasas S.A.; | ||||||||||||||||
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• Was celebrated on June 21, 2013 between Webmotors and Carsales.com the Share Subscription Agreement (“Agreement”) with a view for Carsales to participate in the capital stock of Webmotors (“Transaction”), representing 30% of all its capital amounting R$ 180 million. This transaction generated a gain in Santander Serviços amounting R$120 million related to the change in the percentage shareholding in Webmotors S.A. due to the entry of Carsales in its capital. | ||||||||||||||||
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• Capital reduction of Santander Leasing , on January 04, 2013, amounts R$5 billion, without changing the number of shares. | ||||||||||||||||
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• Disposal on November 22, 2013 of all shares of MS Participações Societárias S.A. amounting R$47.2 millions by Banco Santander, for Capital Riesgo Global, S.C.R. de Regimén Simplificado, S.A., followed by disposal on December 28, 2013 by Capital Riesgo Global, S.C.R. de Regimén Simplificado, S.A., of investment for Elincasiol, S.L. | ||||||||||||||||
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• On February 28, 2014, Santander has exercised a call option right to acquire 97,669 common shares of BW Guirapá I S.A., reaching the total of 252,311 shares. | ||||||||||||||||
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• Acquisition on 7 March 2014, by Webmotors S.A., of 100% of the capital stock of KM Locanet Ltda – ME (“Compreauto”). | ||||||||||||||||
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4) Strategy |
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Banco Santander is a universal bank focused on retail activities. We seek to expand our business through: | ||||||||||||||||
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• Preference and Linkage: Segmented, simple and effective products and services that, through a multi-channel platform, seek to maximize the customer satisfaction; | ||||||||||||||||
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• Recurrence and Sustainability: Business growth with greater revenue diversification and rigorous risk management; | ||||||||||||||||
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• Productivity: intense agenda of productive transformation aligned with the transformation of the financial industry; | ||||||||||||||||
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• Capital Discipline and Liquidity: to maintain the soundness of the balance sheet, to face regulatory changes and to take advantages of growth opportunities. | ||||||||||||||||
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Thus, to better meet the customer needs, we maintain our differentiated proposals, as “Conta Santander Combinada” for individual customers segment, and the new segment called "Santander Select" designed to offer a unique and specialized service to high-income customers. Banco Santander also innovates with the implementation of the "Conta Conecta", a new solution, exclusive of Banco Santander, which combines the benefits of a current account with a device that transforms smartphones and tablets into card readers, offering to professionals, microentrepreneurs and autonomous the resources that will increase its business with convenience, simplicity and mobility. | ||||||||||||||||
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For 2014, aiming to complement our service offering, Banco Santander is also focused on improving the customer experience in Electronic Channels (Call Center, Internet and Mobile Banking). On March 2014, the Bank redesigned its Call Center Electronic Service with the aim of making it more simple and accessible. | ||||||||||||||||
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The Bank also continues increasing its commercial activity. In the Cards segment was signed the agreement for the acquisition of the GetNet Operations and the partnership with iZettle, which are important steps to expand its local participation in the Acquiring segment. Furthermore, in May 2014 we launched a new product Santander Pague Direto, a partnership with Ambev, a subsidiary of the largest beverage industry in the world. This new product offers a solution more focused on SMEs segment, enabling commercial establishments to pay their invoices with Santander machine, in a more convenient, fast and secure way. In the vehicle financing segment, the Bank maintains agreements with Hyundai, Renault, Nissan and Volvo. | ||||||||||||||||
7
Another important aspect of Banco Santander’s strategy is to maintain comfortable levels of liquidity, credit provisioning and capital.By the end of Jun/14 loan to deposit reached 98.1%, coverage ratio stood at 158.5% and Basel ratio of Banco Santander Brasil was 17.9%, maintaining the position of the most capitalized retail bank in Brazil. | ||||||||
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In the context of sustainability, Banco Santander practices are guided by the pillars of Social and Financial Inclusion, Education and Management, Social and Environmental Businesses. In Microcredit Activities, Santander is a leader among private banks. Banco Santander was recognized in the 4th Edition of BeyondBanking Award, in the PlanetBanking category, by its programme “Reduza e Compense CO2”, which consists in providing to all people through an online tool the opportunity to make their contribution to minimizing the impacts of climate change. | ||||||||
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5) Rating Agencies |
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Banco Santander is rated by international ratings agencies and the ratings assigned, reflect many factors including management quality, operating performance and financial strength, as well as other factors related to the financial sector and economic environment in which the Bank is inserted. The table below presents the ratings given by the main rating agencies. | ||||||||
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| RATINGS | Global Scale | National Scale |
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| Local Currency | Foreign Currency | National |
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| Rating Agency | Long Term | Short Term | Long Term | Short Term | Long Term | Short Term |
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| Fitch Ratings (outlook) | BBB+ (stable) | F2 | BBB+ (stable) | F2 | AAA (bra) (stable) | F1+ (bra) |
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Standard & Poor’s (outlook) | BBB (stable) | A3 | BBB (stable) | A3 | brAAA (stable) | brA1 | ||
| Moody's (outlook) | Baa2 (stable) | Prime2 | Baa2 (stable) | Prime2 | Aaa.br (stable) | Br1 |
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Ratings assigned according published reports of the Rating agencies: Fitch Ratings (June 4th, 2014); Standard & Poor’s (March 26th, 2014) and Moody’s (October03rd,2013). | ||||||||
6) Corporate Governance |
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On April 29, 2014, the Bacen approved the reelection of members of the Bank´s Audit Committee, for a term of office of one more year, as the Board of Directors meeting held on March 18, 2014. And 27 May, 2014, the Bacen approved the election of the qualified member of the Bank´s Audit Committee, Mr. Graham Charles Nye, for a term of office of one year, as the Board of Directors meeting held on March 26, 2014, replacing Sra. Elidie Palma Bifano who left the respective position and became just a member of Committee. | ||||||||
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On April 30, 2014 the Board of Directors of the Bank approved the establishment of the Special Independent Committee, with the attribution of advise the Board of Directors in the evaluation and demonstration to be issued pursuant to item 5.8 - Opinion of the Board of Directors, of the Rules of Level 2 Corporate Governance segment of BM&FBovespa ("Level 2") and submission of the Schedule 14D -9 under the Securities Exchange Act of 1934 of the United States of America. On the same date, 2014, the Bank held the Annual and Extraordinary General Meeting, which among other things, approved the election of Mr. Álvaro Antônio Cardoso de Souza, as an independent member of Board of Directors meeting, whose election process was approved by Bacen on July 03, 2014. | ||||||||
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On May 15, 2014, Bacen approved the election of Mr. Angel Santodomingo Martell, in order to serve as Vice-President Executive Officer as well to serve as Investors Relations Officer, as the Board of Directors meeting held on March 26, 2014. O Sr. Santodomingo took office the positions that was elected, on July 08, 2014, when Mr. Carlos Alberto López Galan, left the position as Investor Relations Officer of Banco Santander. | ||||||||
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7) Risk Management |
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7.1) Corporate Governance of the Risk Function | ||||||||
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The structure of the Banco Santander Risk Committee is defined in accordance with the standards of prudent management and customer focus, while respecting local legal and regulatory environment. Its main responsibilities are: | ||||||||
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• To integrate and adapt the Bank's risk culture to the local environment, as well as risk management strategy, level of risk tolerance and the risk appetite, all matched with the Bank corporate standards. | ||||||||
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• To evaluate and approve credit and market proposals and credit limits of clients and portfolios (wholesale and retail);
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• To authorize the use of local management tools and risk models and being informed about the result of its internal validation. | ||||||||
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The organizational structure of the Executive Vice President of Credit and Market Risk, which is independent from commercial areas, is composed of a nucleon responsible for the management of credit risk and another for managing market risk. | ||||||||
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The management structure is composed of directors who act from the portfolio management point of view. | ||||||||
8
A specific department has the mission of consolidate the portfolios and respective risks, supporting senior management with an integrated information.In addition, is also responsible for attending the regulators, internal and external auditors, as well as the Santander Group headquarter in Spain. | ||||||||||||||||
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Further details of the structure, methodologies and control system related to risk management is described in the report available on the websitewww.santander.com.br. | ||||||||||||||||
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7.2) Structure of Capital Management | ||||||||||||||||
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The goal is to achieve an efficient capital structure, meeting the regulatory requirements and contributing to reach the goals regarding the classification of rating branches. | ||||||||||||||||
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The capital management including securitization, sale of assets, raising capital through shares issues, subordinated debt and hybrid instruments. Risk management seeks to optimize value creation in the Banco Santander and the different business units. To this end, capital management, Return on Risk Adjusted Capital (RORAC) and the creation of data values for each business unit are generated. The Banco Santander uses a measurement model of economic capital in order to ensure it has enough capital available to support the risks of economic activity in different scenarios, with solvency levels agreed by the Group.
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Projections of economic and regulatory capital are made based on financial projections (Balance Sheet, Income Statements, etc.) and macroeconomic scenarios estimated by the economic research service of the Financial Management area. The economic capital models are essentially designed to generate risk-sensitive estimates with two goals in mind: more precision in risk management and allocation of economic capital to various units of Banco Santander.
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7.3) Credit Risk | ||||||||||||||||
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The Credit Risk Management tries to supply subsidies to the definition of strategies, according to the risk appetite, in addition to setting limits, spanning the analysis of exposure and trends as well as the effectiveness of credit policy. The objective is to keep a risk profile and an appropriate minimum profitability that compensates the estimated default, both the client and the portfolio as defined the Executive Committee and Management Board. Additionally, it is responsible for the control and monitoring systems used in the management of credit risks and market These systems and processes are applied in the identification, measurement, control and reduction of exposure to credit risk in individual operations or those grouped together by similarity. | ||||||||||||||||
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Risk Management specializes in the characteristics of the customers, as well as the process of risk management is segregated between individual customers (with monitoring of dedicated analysts) and customers with similar characteristics (standardized).
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7.4) Market Risk | ||||||||||||||||
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Market risk is exposure to risk factors including interest rates, exchange rates, commodities prices, stock market prices and other values, according to the type of product, the volume of operations, terms and conditions of the agreement and underlying volatility. Market risk management includes practices of measuring and monitoring the use of limits that are pre-set by internal committees, of the value at risk of the portfolios, of sensitivity to fluctuating interest rates, of exposure to foreign exchange rates, of liquidity gaps, among other practices which the control and monitoring of the risks which might affect the position of Banco Santander portfolios in the different markets in which the Bank operates. | ||||||||||||||||
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Banco Santander Brasil operates in accordance with the global policies aligned with the objectives in Brazil in accordance with the risk appetite of the Bank. For this purpose, developed its own model of Risk Management, as follows: | ||||||||||||||||
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• Functional independence; | ||||||||||||||||
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• Executive capacity sustained by knowledge and customer proximity; |
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• Global scope (different types of risk); | ||||||||||||||||
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• Collective decisions that evaluate all possible scenarios and not compromise the results of individual decisions, including Brazil Executive Risk Committee, which sets limits and approves the transactions and the Executive Committee of Assets and Liabilities, which is responsible for the management of capital and structural risks, which includes country risk, liquidity and interest rates; | ||||||||||||||||
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• Management and optimization of the risk / return; and | ||||||||||||||||
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• Advanced methodologies for risk management, such as Value at Risk (VaR) (historical simulation of 521 days, with a confidence level of 99% and a time horizon of one day), scenarios, sensitivity of net interest income, asset value and sensitivity contingency plan. | ||||||||||||||||
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The structure of Market Risk is part of the Vice President of Credit Risk and Market, which implements the policies of risk, taking into account local and global corporate settings. | ||||||||||||||||
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9
7.5) Environmental and Social Risk | ||||||||||||||||
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Social and environmental risk management for the Large Corporates’ banking customers is accomplished through a management system for customers who have credit limits or credit risk above R$1 million, which considers aspects such as contaminated land, deforestation, working conditions and other social and environmental points of attention in which there is possibility of penalties. A specialized team, with background in Biology, Chemistry, Health and Safety Engineering and Chemical Engineering, monitors the environmental practices of our Large Corporates’ clients. The financial analysis team studies the potential damage and impacts that adverse social and environmental situations may cause to the financial condition of customers and their guarantees. The analysis focuses on preserving capital and market reputation, and the dissemination of this practice is achieved by constant training of both commercial and risk areas on the application of social and environmental risk standards in the credit approval process for corporate client. | ||||||||||||||||
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The social and environmental risk in suppliers is managed throughout the procurement process based on the 10 principles of the United Nations' Global Compact, which considers items such as human rights, working conditions, ethical, social and environmental issues. In order to participate in a bid, a company must state that respects these principles. During approval, a technical evaluation is carried out, involving social and environmental criteria. Additionally, the suppliers classified as high impact undergo further evaluation on the operational, administrative, financial, tax, legal, governance, social and environmental aspects. This phase includes a visit to check the proofs and replies obtained during the evaluation. There are also procedures conducted by independent advisory firms to monitor compliance of the suppliers’ practices with the Global Compact principles.
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7.6) Operational Risk Management, Internal Controls, Sarbanes-Oxley Act and Internal Audit | ||||||||||||||||
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Banco Santander’s corporative areas, responsible for technological and operational risk management and Internal controls are subordinate to different Vice-Presidencies, with structures, procedures, methodologies, tools and specific internal models guaranteed through an appropriate managerial model permitting the identification, capture, assessment, control, monitoring, mitigation and reduction of operational risk events and losses. In addition, the management and prevention of operational and technological risks, the continuity of the business and the continuous strengthening of the internal control system, meets the requirements of the regulators, the Basel Accord (BIS II) and the Sarbanes-Oxley Act (SOX). It is also aligned with the guidelines set forth by Banco Santander Spain, which are based on the COSO - Committee of Sponsoring Organizations of the Treadway Commission – Enterprise Risk Management – Integrated Framework. | ||||||||||||||||
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The developed and adopted procedures aim for Banco Santander’s continuing presence among the select group of financial institutions as having the best operational risk management practices, thereby helping to continuously improve its reputation, solidity, sustainability and reliability in the local and international markets. The management plays an active part, aligned with the mission of the areas, recognizing, participating and sharing responsibility for: the continuous improvements of the operational and technological risk management culture and structure; improvements in the internal control environment, in order to ensure compliance with the established objectives and goals and also the security and quality of the products and services provided. | ||||||||||||||||
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Banco Santander’s Board of Directors opted to adopt the Alternative Standardized Approach (ASA) to calculate the installment of Required Notional Equity related to operational risk. The 2012 review of the effectiveness of internal controls in the Banco Santander companies, in accordance with section 404 of the Sarbanes-Oxley Act, was concluded in April 2014 and found no evidence of any material issues. Additional information on the management models can be found in the annual and social reports at www.santander.com.br/ri. | ||||||||||||||||
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Internal Audit depends directly on the Board of Directors, whose activities are supervised by the Audit Committee. | ||||||||||||||||
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Internal Audit’s objective is to supervise the compliance, efficiency and effectiveness of internal control systems, as well as the reliability and quality of accounting information. Thus, all Banco Santander’s companies, business units, departments and core services are under its scope of application. | ||||||||||||||||
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Audit Committee and the Board of Directors were informed on Internal Audit’s works during the six months of 2014, according to its annual plan. | ||||||||||||||||
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The Audit Committee approved the internal audit work plan and activity report for 2014. In order to perform its duties and reduce coverage risks inherent to Conglomerate's activities, the Internal Audit area has internally-developed tools updated whenever necessary. | ||||||||||||||||
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Among these tools, it is worth mentioning the risk matrix, for it is used as a planning tool, prioritizing each unit’s risk level, based on its inherent risks, audit’s last rating, level of compliance with recommendations and size. | ||||||||||||||||
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In addition, at least annually, the work programs are reviewed. These documents describe the audit tests to be performed, so that the requirements are enforced. | ||||||||||||||||
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Throughout the six months of 2014, internal control procedures and controls on information systems pertaining to units under analysis were assessed according to the work plan for 2014, taking into account their conception efficiency and performance. | ||||||||||||||||
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10
8) People | ||||||||||||||||
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For Banco Santander ensure the preference of its clients, it is essential to put the utmost value on its main asset: People. Since its employees are the strongest link between the Bank and its clients, it is continuously fine-tuning its management practices and processes so that they remain fully motivated and fulfill all their potential. | ||||||||||||||||
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Banco Santander seeks to ensure that its professionals identify with the Organization and share its values, in the belief that their dedication is crucial for the consolidation and dissemination of its differentials. Consequently, in addition to offering and encouraging a participatory and collaborative working environment, it prepares its teams so way that they have various career and development possibilities. Thanks to a series of local and international programs and opportunities, employees are always alert to new opportunities and challenges. | ||||||||||||||||
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Some of Banco Santander’s initiatives for supporting the personal and professional growth of its People are listed below: | ||||||||||||||||
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• Career Opportunities and Recognition:preparing its employees and interns for various career and development possibilities. It offers local and international development programs and encourages mobility between different areas and countries and identifies the progress of each individual through transparent and objective assessment procedures; | ||||||||||||||||
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•People Appreciation:valuing its People outside the professional area by recognizing their social and family needs. It offers opportunities and benefits geared towards the complete individual, such as the Specialized Personal Support Program (PAPE), as well as more segmented solutions, aimed at ensuring a better working, home and social life; | ||||||||||||||||
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•Continuous Managerial Development: Banco Santander’s managers are the strongest link between the Organization and its professionals. They are therefore subject to continuous development programs to ensure their alignment with the Bank’s strategy and proposal and that they inspire their teams and promote their advancement in the pursuit of excellence, thereby generating results for shareholders, clients, employees and society as a whole; | ||||||||||||||||
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•Encouraging Innovation:encouraging its professionals to always look ahead, trying to glimpse hitherto unseen horizons in order to improve client service and generate efficiency. Best practices are shared on a daily basis and ideas are highly valued; | ||||||||||||||||
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• Participatory and Collaborative Environment:there is ample room for employees to question, discuss and suggest new ways of doing things in a participatory and collaborative manner within a multicultural and multigenerational environment. The Bank’s relationships are based on transparency and trust in order to promote teamwork and self-esteem. Thus everyone progresses and teams mesh, allowing the Bank to evolve and innovate; and | ||||||||||||||||
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•Being Part of a World Class Company:with a differentiated proposal as an employer, a talented team with the best professionals in the market, and an increasingly strong brand, Banco Santander has many reasons to be proud. International tradition, a global presence and local recognition are underlined by its 155 years of history, 190 thousand employees worldwide, 49 thousand in Brazil alone, and more than 100 million clients. | ||||||||||||||||
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9) Sustainable Development | ||||||||||||||||
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On April 25th,Bacen published the Resolution 4.327, which establishes the implementation of a Socio-environmental Responsibility Policy (PRSA) by the financial and other institutions authorized to function by the Bacen. Banco Santander already adopts a series of practices established by the Resolution and is working on an action plan for the integral compliance to the new regulation, according to the schedule purposed by the Resolution. These practices are available in our Annual Report, which concerns our business performance from 2013. The new edition follows the directives from the Global Reporting Initiative (GRI) G4 for sustainability reports, comprehensive option, audited by external verification.
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In May, we were mentioned by the IstoÉ Dinheiro magazine as one of the “50 empresas do bem” (“50 companies of good”), with highlight to our urban mobility initiatives, adopted at the Torre Santander. | ||||||||||||||||
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10) Other Information | ||||||||||||||||
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It is part of Banco Santander´s policy to restrict the services provided by the independent auditors, so as to preserve the auditor’s independence and objectivity, in accordance with Brazilian and international standards. In compliance with CVM Instruction 381/2003, we hereby inform that during in June 2014, there hasn´t been any contract for non-audit services from Deloitte Touche Tohmatsu Auditores, which cumulatively represent more than 5% of the related overall consideration. | ||||||||||||||||
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The Board of Directors The Executive | ||||||||||||||||
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(Adopted at the Meeting of the Board of 07.30.2014). |
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*** | ||||||||||||||||
11
12
13
(Convenience Translation into English from the Original Previously Issued in Portuguese) | |
![]() | BANCO SANTANDER (BRASIL) S.A. AND SUBSIDIARIES BALANCE SHEETS |
In thousands of Brazilian Real - R$, unless otherwise stated |
|
|
|
|
|
| Bank |
|
|
| Consolidated |
|
| Note |
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
|
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
| 282,392,291 |
| 265,138,473 |
| 289,582,370 |
| 269,137,144 |
Cash |
| 4 |
| 4,670,666 |
| 4,437,335 |
| 5,004,702 |
| 4,533,536 |
Interbank Investments |
| 5 |
| 51,287,476 |
| 62,877,791 |
| 32,447,494 |
| 44,233,702 |
Money Market Investments |
|
|
| 21,114,874 |
| 28,695,443 |
| 21,114,874 |
| 28,696,127 |
Interbank Deposits |
|
|
| 21,524,924 |
| 23,917,884 |
| 2,684,942 |
| 3,776,245 |
Foreign Currency Investments |
|
|
| 8,647,678 |
| 10,264,464 |
| 8,647,678 |
| 11,761,330 |
Securities and Derivative Financial |
|
|
|
|
|
|
|
|
|
|
Instruments |
| 6 |
| 55,510,050 |
| 39,100,755 |
| 57,801,692 |
| 40,464,371 |
Own Portfolio |
|
|
| 17,031,870 |
| 9,267,379 |
| 27,116,329 |
| 24,797,117 |
Subject to Repurchase Commitments |
|
|
| 32,110,415 |
| 23,782,793 |
| 22,305,279 |
| 8,104,367 |
Derivative Financial Instruments |
|
|
| 1,701,187 |
| 2,016,245 |
| 1,848,813 |
| 2,084,850 |
Linked to Central Bank of Brazil |
|
|
| 2,348,025 |
| 1,683,099 |
| 2,449,917 |
| 1,683,099 |
Privatization Certificates |
|
|
| 67 |
| - |
| 67 |
| - |
Linked to Guarantees |
|
|
| 2,318,486 |
| 2,351,239 |
| 4,081,287 |
| 3,794,938 |
Interbank Accounts |
| 7 |
| 44,923,455 |
| 33,912,502 |
| 45,166,100 |
| 34,149,822 |
Payments and Receipts Pending Settlement |
| 2,623,148 |
| 1,552,446 |
| 2,623,148 |
| 1,552,446 | ||
Restricted Deposits: |
|
|
| 42,237,114 |
| 32,325,717 |
| 42,479,759 |
| 32,563,037 |
Central Bank Deposits |
|
|
| 42,230,158 |
| 32,325,581 |
| 42,472,803 |
| 32,562,901 |
National Housing System |
|
|
| 6,956 |
| 136 |
| 6,956 |
| 136 |
Correspondents |
|
|
| 63,193 |
| 34,339 |
| 63,193 |
| 34,339 |
Interbranch Accounts |
|
|
| - |
| 996 |
| - |
| 998 |
Internal Transfers of Funds |
|
|
| - |
| 996 |
| - |
| 998 |
Lending Operations |
| 8 |
| 53,838,920 |
| 50,675,273 |
| 71,887,209 |
| 65,885,750 |
Public Sector |
|
|
| 44,611 |
| 26,150 |
| 44,611 |
| 26,150 |
Private Sector |
|
|
| 56,367,489 |
| 53,037,917 |
| 74,916,317 |
| 68,722,884 |
Lending Operations Assignment |
|
|
| 9,510 |
| 2,281 |
| 9,510 |
| 2,281 |
(Allowance for Loan Losses) |
| 8.f |
| (2,582,690) |
| (2,391,075) |
| (3,083,229) |
| (2,865,565) |
Leasing Operations |
| 8 |
| 1,047 |
| 17,547 |
| 1,913,110 |
| 2,541,579 |
Public Sector |
|
|
| - |
| - |
| 2,379 |
| 2,607 |
Private Sector |
|
|
| 1,131 |
| 18,733 |
| 1,956,016 |
| 2,614,209 |
(Allowance for Lease Losses) |
| 8.f |
| (84) |
| (1,186) |
| (45,285) |
| (75,237) |
Other Receivables |
|
|
| 71,402,679 |
| 73,539,012 |
| 74,434,605 |
| 76,627,261 |
Credits for Guarantees Honored |
|
|
| 769 |
| 283 |
| 769 |
| 283 |
Foreign Exchange Portfolio |
| 9 |
| 39,164,788 |
| 44,929,327 |
| 39,164,788 |
| 44,929,327 |
Income Receivable |
|
|
| 510,603 |
| 544,639 |
| 516,490 |
| 561,473 |
Trading Account |
| 10 |
| 549,252 |
| 841,786 |
| 662,356 |
| 1,242,383 |
Tax Credits |
| 11 |
| 4,305,789 |
| 4,585,340 |
| 4,964,746 |
| 5,480,850 |
Others |
| 12 |
| 26,971,565 |
| 22,715,189 |
| 29,257,166 |
| 24,517,637 |
(Allowance for Other Receivables Losses) |
| 8.f |
| (100,087) |
| (77,552) |
| (131,710) |
| (104,692) |
Other Assets |
|
|
| 757,998 |
| 577,262 |
| 927,458 |
| 700,125 |
Other Assets |
|
|
| 456,248 |
| 187,928 |
| 461,986 |
| 192,134 |
(Allowance for Valuation) |
|
|
| (49,385) |
| (56,326) |
| (51,482) |
| (58,938) |
Prepaid Expenses |
|
|
| 351,135 |
| 445,660 |
| 516,954 |
| 566,929 |
14
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|
|
| �� |
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| |
Long-Term Assets |
|
|
| 215,158,715 |
| 196,203,166 |
| 187,166,917 |
| 177,836,392 | |
Interbank Investments |
| 5 |
| 10,060,692 |
| 11,665,439 |
| 54,090 |
| 108,289 | |
Interbank Deposits |
|
|
| 10,060,692 |
| 11,665,439 |
| 54,090 |
| 108,289 | |
Securities and Derivative Financial |
|
|
|
|
|
|
|
|
|
| |
Instruments |
| 6 |
| 87,099,725 |
| 67,710,942 |
| 46,060,094 |
| 37,069,633 | |
Own Portfolio |
|
|
| 12,492,936 |
| 7,578,950 |
| 10,435,947 |
| 9,912,556 | |
Subject to Repurchase Commitments |
|
|
| 59,708,179 |
| 46,819,245 |
| 20,077,226 |
| 12,889,326 | |
Derivative Financial Instruments |
|
|
| 3,996,529 |
| 4,456,016 |
| 4,052,895 |
| 4,434,335 | |
Linked to Central Bank of Brazil |
|
|
| 5,709,004 |
| 978,062 |
| 5,709,004 |
| 978,062 | |
Privatization Certificates |
|
|
| 2,776 |
| 2,596 |
| 2,776 |
| 2,596 | |
Linked to Guarantees |
|
|
| 5,190,301 |
| 7,876,073 |
| 5,782,246 |
| 8,852,758 | |
Interbank Accounts |
| 7 |
| 161,576 |
| 167,663 |
| 161,576 |
| 167,663 | |
Restricted Deposits: |
|
|
| 161,576 |
| 167,663 |
| 161,576 |
| 167,663 | |
National Housing System |
|
|
| 161,576 |
| 167,663 |
| 161,576 |
| 167,663 | |
Lending Operations |
| 8 |
| 93,098,153 |
| 94,893,302 |
| 109,059,678 |
| 111,094,060 | |
Public Sector |
|
|
| 63,426 |
| 73,587 |
| 63,426 |
| 73,587 | |
Private Sector |
|
|
| 103,328,462 |
| 105,555,005 |
| 119,949,661 |
| 122,516,746 | |
Lending Operations Related to Assignment |
|
| 5,443 |
| 35,907 |
| 5,443 |
| 35,907 | ||
(Allowance for Loan Losses) |
| 8.f |
| (10,299,178) |
| (10,771,197) |
| (10,958,852) |
| (11,532,180) | |
Leasing Operations |
| 8 |
| 134 |
| 2,137 |
| 1,608,728 |
| 2,163,740 | |
Public Sector |
|
|
| - |
| - |
| 422 |
| 2,494 | |
Private Sector |
|
|
| 390 |
| 4,206 |
| 1,670,735 |
| 2,265,902 | |
(Allowance for Lease Losses) |
| 8.f |
| (256) |
| (2,069) |
| (62,429) |
| (104,656) | |
Other Receivables |
|
|
| 24,211,579 |
| 21,221,965 |
| 29,266,834 |
| 26,153,948 | |
Receivables for Guarantees Honored |
|
|
| 40,014 |
| 4,759 |
| 40,014 |
| 4,759 | |
Foreign Exchange Portfolio |
| 9 |
| 233,334 |
| 236,522 |
| 233,334 |
| 236,522 | |
Income Receivable |
|
|
| 230,552 |
| 132,283 |
| 230,552 |
| 132,283 | |
Negotiation and Intermediation of Securities | 10 |
| 9,502 |
| 9,098 |
| 9,502 |
| 9,098 | ||
Tax Credits |
| 11 |
| 12,744,582 |
| 11,773,801 |
| 14,721,054 |
| 13,655,301 | |
Others |
| 12 |
| 11,260,154 |
| 9,363,481 |
| 14,406,561 |
| 12,466,320 | |
(Allowance for Other Receivables Losses) |
| 8.f |
| (306,559) |
| (297,979) |
| (374,183) |
| (350,335) | |
Other Assets |
|
|
| 526,856 |
| 541,718 |
| 955,917 |
| 1,079,059 | |
Temporary Assets |
|
|
| 1,801 |
| 8,061 |
| 1,809 |
| 8,069 | |
(Allowance for Losses) |
|
|
| (1,765) |
| (1,765) |
| (1,773) |
| (1,773) | |
Prepaid Expenses |
|
|
| 526,820 |
| 535,422 |
| 955,881 |
| 1,072,763 | |
|
|
|
|
|
|
|
|
|
|
| |
Permanent Assets |
|
|
| 30,836,644 |
| 33,817,992 |
| 17,450,745 |
| 21,076,434 | |
Investments |
|
|
| 13,921,370 |
| 13,295,600 |
| 49,731 |
| 114,676 | |
Investments in Affiliates and Subsidiaries: | 14 |
| 13,903,248 |
| 13,278,238 |
| 25,744 |
| 76,640 | ||
Domestic |
|
|
| 11,591,216 |
| 11,114,400 |
| 25,744 |
| 76,640 | |
Foreign |
|
|
| 2,312,032 |
| 2,163,838 |
| - |
| - | |
Other Investments |
|
|
| 49,892 |
| 49,213 |
| 61,413 |
| 74,448 | |
(Allowance for Losses) |
|
|
| (31,770) |
| (31,851) |
| (37,426) |
| (36,412) | |
Fixed Assets |
| 15 |
| 6,202,753 |
| 5,751,459 |
| 6,363,450 |
| 5,886,012 | |
Real Estate |
|
|
| 2,460,719 |
| 2,045,600 |
| 2,469,326 |
| 2,054,144 | |
Others |
|
|
| 9,154,518 |
| 8,386,087 |
| 9,487,240 |
| 8,673,221 | |
(Accumulated Depreciation) |
|
|
| (5,412,484) |
| (4,680,228) |
| (5,593,116) |
| (4,841,353) | |
Intangibles |
| 16 |
| 10,712,521 |
| 14,770,933 |
| 11,037,564 |
| 15,075,746 | |
Goodwill |
|
|
| 26,020,084 |
| 26,012,090 |
| 26,276,031 |
| 26,239,908 | |
Intangible Assets |
|
|
| 6,880,264 |
| 6,827,644 |
| 7,042,233 |
| 6,977,923 | |
(Accumulated Amortization) |
|
|
| (22,187,827) |
| (18,068,801) |
| (22,280,700) |
| (18,142,085) | |
Total Assets |
|
|
| 528,387,650 |
| 495,159,631 |
| 494,200,032 |
| 468,049,970 | |
15
Current Liabilities |
|
|
| 321,174,417 |
| 279,548,394 |
| 278,667,120 |
| 246,867,695 | ||
Deposits |
| 17.a |
| 116,670,596 |
| 95,452,156 |
| 83,836,786 |
| 72,539,907 | ||
Demand Deposits |
|
|
| 14,959,503 |
| 13,619,955 |
| 14,634,502 |
| 13,385,356 | ||
Savings Deposits |
|
|
| 35,778,901 |
| 29,293,118 |
| 35,778,901 |
| 29,293,118 | ||
Interbank Deposits |
|
|
| 35,053,203 |
| 24,837,064 |
| 2,725,089 |
| 2,207,654 | ||
Time Deposits |
|
|
| 30,878,989 |
| 27,702,019 |
| 30,698,294 |
| 27,653,779 | ||
Money Market Funding |
| 17.b |
| 67,870,928 |
| 67,060,306 |
| 52,510,227 |
| 52,234,504 | ||
Own Portfolio |
|
|
| 64,625,647 |
| 42,498,437 |
| 49,964,943 |
| 31,564,436 | ||
Third Parties |
|
|
| 2,999,995 |
| 13,647,961 |
| 2,299,998 |
| 9,756,160 | ||
Linked to Trading Portfolio Operations |
|
|
| 245,286 |
| 10,913,908 |
| 245,286 |
| 10,913,908 | ||
Funds from Acceptance and Issuance of |
|
|
|
|
|
|
|
|
|
| ||
Securities |
| 17.c |
| 46,108,814 |
| 27,801,661 |
| 47,763,584 |
| 28,693,532 | ||
Exchange Acceptances |
|
|
| - |
| - |
| 564,156 |
| 507,129 | ||
Resources of Debentures |
|
|
| - |
| - |
| 368,513 |
| 201,434 | ||
Real Estate Credit Notes, Mortgage Notes, |
|
|
|
|
|
|
|
|
| |||
Credit and Similar Notes |
|
|
| 42,172,299 |
| 21,487,443 |
| 42,894,400 |
| 21,670,751 | ||
Securities Issued Abroad |
|
|
| 3,775,536 |
| 6,314,218 |
| 3,775,536 |
| 6,314,218 | ||
Funding by Structured Operations Certificates |
| 160,979 |
| - |
| 160,979 |
| - | ||||
Interbank Accounts |
| 7 |
| 2,492,149 |
| 1,414,430 |
| 2,492,149 |
| 1,414,430 | ||
Receipts and Payments Pending Settlement |
| 2,458,360 |
| 1,384,097 |
| 2,458,360 |
| 1,384,097 | ||||
Correspondents |
|
|
| 33,789 |
| 30,333 |
| 33,789 |
| 30,333 | ||
Interbranch Accounts |
|
|
| 1,509,361 |
| 984,246 |
| 1,509,361 |
| 984,246 | ||
Third-Party Funds in Transit |
|
|
| 1,508,702 |
| 982,419 |
| 1,508,702 |
| 982,419 | ||
Internal Transfers of Funds |
|
|
| 659 |
| 1,827 |
| 659 |
| 1,827 | ||
Borrowings |
| 17.e |
| 16,785,447 |
| 15,536,221 |
| 16,800,428 |
| 15,558,821 | ||
Local Borrowings - Other Institutions |
|
|
| 39,457 |
| 48,653 |
| 54,438 |
| 48,653 | ||
Foreign Borrowings |
|
|
| 16,745,990 |
| 15,487,568 |
| 16,745,990 |
| 15,510,168 | ||
Domestic Onlendings - Official Institutions |
| 17.e |
| 3,830,907 |
| 2,935,394 |
| 3,830,907 |
| 2,935,394 | ||
National Treasury |
|
|
| 627 |
| 244 |
| 627 |
| 244 | ||
National Economic and Social Development |
|
|
|
|
|
|
|
| ||||
Bank (BNDES) |
|
|
| 1,606,531 |
| 1,285,001 |
| 1,606,531 |
| 1,285,001 | ||
Federal Savings and Loan Bank (CEF) |
|
|
| 4,435 |
| 2,828 |
| 4,435 |
| 2,828 | ||
National Equipment Financing Authority (FINAME) |
| 2,140,184 |
| 1,547,741 |
| 2,140,184 |
| 1,547,741 | ||||
Other Institutions |
|
|
| 79,130 |
| 99,580 |
| 79,130 |
| 99,580 | ||
Foreign Onlendings |
| 17.e |
| 9,348 |
| 19,266 |
| 9,348 |
| 19,266 | ||
Foreign Onlendings |
|
|
| 9,348 |
| 19,266 |
| 9,348 |
| 19,266 | ||
Derivative Financial Instruments |
| 6 |
| 1,224,085 |
| 2,103,655 |
| 1,345,207 |
| 2,238,181 | ||
Derivative Financial Instruments |
|
|
| 1,224,085 |
| 2,103,655 |
| 1,345,207 |
| 2,238,181 | ||
Other Payables |
|
|
| 64,672,782 |
| 66,241,059 |
| 68,569,123 |
| 70,249,414 | ||
Collected Taxes and Other |
|
|
| 1,065,025 |
| 1,019,761 |
| 1,071,970 |
| 1,027,327 | ||
Foreign Exchange Portfolio |
| 9 |
| 34,939,608 |
| 42,114,103 |
| 34,939,608 |
| 42,114,103 | ||
Social and Statutory |
|
|
| 871,188 |
| 1,146,006 |
| 881,833 |
| 1,156,863 | ||
Tax and Social Security |
| 18 |
| 1,395,076 |
| 895,880 |
| 1,968,035 |
| 1,885,652 | ||
Trading Account |
| 10 |
| 551,388 |
| 1,654,979 |
| 1,113,035 |
| 2,143,204 | ||
Subordinated Debt |
| 19 |
| 2,146,690 |
| 1,030,011 |
| 2,146,690 |
| 1,030,011 | ||
Debt Instruments Eligible to Compose Capital | 20 |
| 121,766 |
| - |
| 121,766 |
| - | |||
Others |
| 21 |
| 23,582,041 |
| 18,380,319 |
| 26,326,186 |
| 20,892,254 | ||
16
Long-Term Liabilities |
|
|
| 148,882,035 |
| 151,392,224 |
| 156,197,476 |
| 156,043,859 | ||||||
Deposits |
| 17.a |
| 49,730,160 |
| 53,280,609 |
| 50,281,006 |
| 53,607,177 | ||||||
Interbank Deposits |
|
|
| 688,503 |
| 744,758 |
| 1,447,383 |
| 1,396,068 | ||||||
Time Deposits |
|
|
| 49,041,657 |
| 52,535,851 |
| 48,833,623 |
| 52,211,109 | ||||||
Money Market Funding |
| 17.b |
| 37,546,063 |
| 27,844,393 |
| 37,435,219 |
| 26,636,553 | ||||||
Own Portfolio |
|
|
| 26,794,076 |
| 27,844,393 |
| 26,683,232 |
| 26,636,553 | ||||||
Linked to Trading Portfolio Operations |
|
|
| 10,751,987 |
| - |
| 10,751,987 |
| - | ||||||
Funds from Acceptance and Issuance of |
|
|
|
|
|
|
|
|
|
| ||||||
Securities |
| 17.c |
| 19,156,593 |
| 34,027,295 |
| 21,975,123 |
| 36,262,402 | ||||||
Exchange Acceptances |
|
|
| - |
| - |
| 476,151 |
| 620,728 | ||||||
Real Estate Credit Notes, Mortgage Notes, |
|
|
|
|
|
|
|
|
| |||||||
Credit and Similar Notes |
|
|
| 10,322,977 |
| 21,528,147 |
| 12,665,356 |
| 23,142,526 | ||||||
Securities Issued Abroad |
|
|
| 8,833,616 |
| 12,499,148 |
| 8,833,616 |
| 12,499,148 | ||||||
Borrowings |
| 17.e |
| 1,330,152 |
| 1,417,340 |
| 1,330,152 |
| 1,417,340 | ||||||
Local Borrowings - Other Institutions |
|
|
| 11,606 |
| 49,832 |
| 11,606 |
| 49,832 | ||||||
Foreign Borrowings |
|
|
| 1,318,546 |
| 1,367,508 |
| 1,318,546 |
| 1,367,508 | ||||||
Domestic Onlendings - Official Institutions |
| 17.e |
| 9,111,697 |
| 6,623,752 |
| 9,111,697 |
| 6,623,752 | ||||||
National Treasury |
|
|
| 104 |
| 731 |
| 104 |
| 731 | ||||||
National Economic and Social Development |
|
|
|
|
|
|
|
| ||||||||
Bank (BNDES) |
|
|
| 4,385,754 |
| 3,561,490 |
| 4,385,754 |
| 3,561,490 | ||||||
Federal Savings and Loan Bank (CEF) |
|
|
| 105,149 |
| 66,226 |
| 105,149 |
| 66,226 | ||||||
National Equipment Financing Authority (FINAME) |
| 4,618,656 |
| 2,995,305 |
| 4,618,656 |
| 2,995,305 | ||||||||
Other Institutions |
|
|
| 2,034 |
| - |
| 2,034 |
| - | ||||||
Foreign Onlendings |
| 17.e |
| - |
| 9,516 |
| - |
| 9,516 | ||||||
Foreign Onlendings |
|
|
| - |
| 9,516 |
| - |
| 9,516 | ||||||
Derivative Financial Instruments |
| 6 |
| 2,954,061 |
| 3,532,064 |
| 3,127,013 |
| 3,474,399 | ||||||
Derivative Financial Instruments |
|
|
| 2,954,061 |
| 3,532,064 |
| 3,127,013 |
| 3,474,399 | ||||||
Other Payables |
|
|
| 29,053,309 |
| 24,657,255 |
| 32,937,266 |
| 28,012,720 | ||||||
Foreign Exchange Portfolio |
| 9 |
| 149,924 |
| 97,659 |
| 149,924 |
| 97,659 | ||||||
Tax and Social Security |
| 18 |
| 12,026,139 |
| 11,864,270 |
| 15,246,047 |
| 14,757,532 | ||||||
Negotiation and Intermediation of Securities | 10 |
| 68,314 |
| 29,476 |
| 68,314 |
| 79,920 | |||||||
Subordinated Debts |
| 19 |
| 6,701,967 |
| 8,015,620 |
| 6,701,967 |
| 8,015,620 | ||||||
Debt Instruments Eligible to Compose Capital | 20 |
| 5,496,174 |
| - |
| 5,496,174 |
| - | |||||||
Others |
| 21 |
| 4,610,791 |
| 4,650,230 |
| 5,274,840 |
| 5,061,989 | ||||||
|
|
|
|
|
|
|
|
|
|
| ||||||
Deferred Income |
|
|
| 323,214 |
| 251,659 |
| 335,155 |
| 251,678 | ||||||
Deferred Income |
|
|
| 323,214 |
| 251,659 |
| 335,155 |
| 251,678 | ||||||
|
|
|
|
|
|
|
|
|
|
| ||||||
Minority Interest |
|
|
| - |
| - |
| 997,454 |
| 923,510 | ||||||
|
|
|
|
|
|
|
|
|
|
| ||||||
Stockholders' Equity |
| 23 |
| 58,007,984 |
| 63,967,354 |
| 58,002,827 |
| 63,963,228 | ||||||
Capital: |
|
|
| 57,000,000 |
| 62,828,201 |
| 57,000,000 |
| 62,828,201 | ||||||
Brazilian Residents |
|
|
| 4,808,186 |
| 6,251,291 |
| 4,808,186 |
| 6,251,291 | ||||||
Foreign Residents |
|
|
| 52,191,814 |
| 56,576,910 |
| 52,191,814 |
| 56,576,910 | ||||||
Capital Reserves |
|
|
| 637,513 |
| 631,268 |
| 638,322 |
| 633,887 | ||||||
Profit Reserves |
|
|
| 1,901,894 |
| 2,073,816 |
| 1,863,973 |
| 1,557,545 | ||||||
Adjustment to Fair Value |
|
|
| (1,179,430) |
| (1,400,299) |
| (1,175,826) |
| (1,252,330) | ||||||
Accumulated Profits |
|
|
| - |
| - |
| 28,351 |
| 361,557 | ||||||
(-) Treasury Shares |
|
|
| (351,993) |
| (165,632) |
| (351,993) |
| (165,632) | ||||||
Total Liabilities |
|
|
| 528,387,650 |
| 495,159,631 |
| 494,200,032 |
| 468,049,970 | ||||||
The accompanying notes are an integral part of these financial statements. |
|
|
|
| ||||||||||||
17
(Convenience Translation into English from the Original Previously Issued in Portuguese) | |
![]() | BANCO SANTANDER (BRASIL) S.A. AND SUBSIDIARIES INCOME STATEMENTS |
In thousands of Brazilian Real - R$, unless otherwise stated |
|
|
|
|
|
|
| |
|
|
|
| Bank |
| Consolidated | |
|
|
| 01/01 to | 01/01 to | 01/01 to | 01/01 to | |
| Note |
| 06/30/2014 | 06/30/2013 | 06/30/2014 |
| 06/30/2013 |
|
|
|
|
|
|
|
|
Financial Income |
|
| 27,337,913 | 25,484,351 | 27,756,305 |
| 26,968,804 |
Lending Operations |
|
| 14,468,868 | 16,612,048 | 17,688,185 |
| 19,395,073 |
Leasing Operations |
|
| - | 2,853 | 254,091 |
| 346,306 |
Securities Transactions | 6.a |
| 9,659,913 | 7,838,409 | 6,544,526 |
| 6,217,566 |
Derivatives Transactions |
|
| 646,685 | (241,471) | 688,975 |
| (270,901) |
Foreign Exchange Operations |
|
| 870,444 | 267,381 | 870,444 |
| 267,381 |
Operations of Sale or Transfer of Financial Assets | 5,880 | 34,068 | 12,419 |
| 34,460 | ||
Compulsory Deposits |
|
| 1,686,123 | 971,063 | 1,697,665 |
| 978,919 |
|
|
|
|
|
|
| |
Financial Expenses |
|
| (18,930,769) | (19,994,260) | (18,001,122) |
| (19,860,951) |
Funding Operations Market | 17.d |
| (14,593,000) | (11,626,478) | (12,753,881) |
| (10,656,771) |
Borrowings and Onlendings Operations |
| 932,778 | (1,830,883) | 796,537 |
| (1,837,912) | |
Leasing Operations |
|
| (566) | - | - |
| - |
Allowance for Loan Losses | 8.f |
| (5,269,981) | (6,536,899) | (6,043,778) |
| (7,366,268) |
|
|
|
|
|
|
|
|
Gross Profit From Financial Operations |
| 8,407,144 | 5,490,091 | 9,755,183 |
| 7,107,853 | |
|
|
|
|
|
|
|
|
Other Operating (Expenses) Income |
| (5,948,421) | (5,911,692) | (6,877,534) |
| (6,736,918) | |
Income from Services Rendered | 26 |
| 3,503,782 | 3,394,569 | 3,900,174 |
| 3,782,364 |
Income from Banking Fees | 26 |
| 1,174,921 | 1,194,026 | 1,415,692 |
| 1,431,516 |
Personnel Expenses | 27 |
| (2,820,959) | (2,852,215) | (2,994,435) | �� | (3,013,792) |
Other Administrative Expenses | 28 |
| (5,990,082) | (5,918,540) | (6,277,165) |
| (6,213,603) |
Tax Expenses | 29 |
| (1,437,508) | (1,143,462) | (1,672,476) |
| (1,394,066) |
Investments in Affiliates and Subsidiaries | 14 |
| 587,421 | 512,761 | 291 |
| 5,496 |
Other Operating Income | 30 |
| 1,220,831 | 844,237 | 1,247,433 |
| 995,957 |
Other Operating Expenses | 31 |
| (2,186,827) | (1,943,068) | (2,497,048) |
| (2,330,790) |
|
|
|
|
|
|
|
|
Operating Income |
|
| 2,458,723 | (421,601) | 2,877,649 |
| 370,935 |
|
|
|
|
|
|
|
|
Non-Operating Income | 32 |
| 46,738 | 78,554 | 45,396 |
| 199,300 |
|
|
|
|
|
|
|
|
Income Before Taxes on Income and Profit Sharing | 2,505,461 | (343,047) | 2,923,045 |
| 570,235 | ||
|
|
|
|
|
|
|
|
Income Tax and Social Contribution | 33 |
| (939,972) | 1,542,756 | (1,240,905) |
| 1,151,405 |
Provision for Income Tax |
|
| (528,256) | 5,158 | (743,211) |
| (174,392) |
Provision for Social Contribution Tax |
| (297,721) | - | (451,237) |
| (146,651) | |
Deferred Tax Credits |
|
| (113,995) | 1,537,598 | (46,457) |
| 1,472,448 |
|
|
|
|
|
|
|
|
Profit Sharing |
|
| (524,896) | (431,636) | (552,810) |
| (473,864) |
|
|
|
|
|
|
|
|
Minority Interest |
|
| - | - | (83,408) |
| (137,749) |
|
|
|
|
|
|
|
|
Net Income |
|
| 1,040,593 | 768,073 | 1,045,922 |
| 1,110,027 |
|
|
|
|
|
|
|
|
Number of Shares (Thousands) | 23.a |
| 7,550,148 | 7,580,921 |
|
|
|
Net Income per Thousand Shares (R$) |
| 137.82 | 101.32 |
|
|
| |
The accompanying notes are an integral part of these financial statements. | |||||||
18
(Convenience Translation into English from the Original Previously Issued in Portuguese) | |
![]() | BANCO SANTANDER (BRASIL) S.A. AND SUBSIDIARIES STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY |
In thousands of Brazilian Real - R$, unless otherwise stated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
| Profit Reserves | Adjustment to Fair Value |
|
|
|
| ||||||||||
|
|
|
|
|
|
|
| Reserve for |
|
| Others |
|
|
|
|
| |||||
|
|
|
|
| Capital | Legal |
| Dividend | Own | Affiliates and | Adjustment | Retained |
| (-)sTreasury | |||||||
| Note |
| Capital |
| Reserves |
| Reserve |
| Equalization |
| Position |
| Subsidiaries |
| to Fair Value |
| Earnings |
| Shares |
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of December 31, 2012 Adjusted |
|
| 62,828,201 |
| 610,215 |
| 1,300,216 |
| 955,527 |
| 413,578 |
| 73,737 |
| (2,524,323) |
| - |
| (170,562) |
| 63,486,589 |
Employee Benefit Plan (Adoption of CPC 33) |
| - |
| - |
| - |
| - |
| - |
| - |
| 1,378,869 |
| - |
| - |
| 1,378,869 | |
Treasury Shares | 23.d |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| (24,484) |
| (24,484) |
Result of Treasury Shares | 23.d |
| - |
| (676) |
| - |
| - |
| - |
| - |
| - |
| - |
| 29,414 |
| 28,738 |
Reservations for Share - Based Payment | 34.e |
| - |
| 21,729 |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| 21,729 |
Adjustment to Fair Value - Securities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative Financial Instruments |
|
| - |
| - |
| - |
| - |
| (571,646) |
| (170,514) |
| - |
| - |
| - |
| (742,160) |
Dividends based on Reserve for Dividend Equalization | 23.b |
| - |
| - |
| - |
| (650,000) |
| - |
| - |
| - |
| - |
| - |
| (650,000) |
Net Income |
|
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| 768,073 |
| - |
| 768,073 |
Allocations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal Reserve |
|
| - |
| - |
| 38,404 |
| - |
| - |
| - |
| - |
| (38,404) |
| - |
| - |
Interest on Capital | 23.b |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| (300,000) |
| - |
| (300,000) |
Reserve for Dividend Equalization | 23.c |
| - |
| - |
| - |
| 429,669 |
| - |
| - |
| - |
| (429,669) |
| - |
| - |
Balances as of June 30, 2013 |
|
| 62,828,201 |
| 631,268 |
| 1,338,620 |
| 735,196 |
| (158,068) |
| (96,777) |
| (1,145,454) |
| - |
| (165,632) |
| 63,967,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as of December 31, 2013 |
|
| 62,828,201 |
| 827,496 |
| 1,381,494 |
| 99,807 |
| (560,497) |
| (127,177) |
| (1,332,264) |
| - |
| (291,707) |
| 62,825,353 |
Employee Benefit Plan (Adoption of CPC 33) |
| - |
| - |
| - |
| - |
| - |
| - |
| 1,772 |
| - |
| - |
| 1,772 | |
Treasury Shares | 23.d |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| (60,266) |
| (60,266) |
Result of Treasury Shares | 23.d |
| - |
| (5,360) |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| (5,360) |
Reservations for Share - Based Payment | 34.e |
| - |
| 689 |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| 689 |
Adjustment to Fair Value - Securities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative Financial Instruments |
|
| - |
| - |
| - |
| - |
| 792,962 |
| 45,774 |
| - |
| - |
| - |
| 838,736 |
Dividends based on Reserve for Dividend Equalization | 23.b |
| - |
| - |
| - |
| (99,807) |
| - |
| - |
| - |
| - |
| - |
| (99,807) |
Restructuring of Capital | 23.d & f |
| (5,828,201) |
| (185,312) |
| - |
| - |
| - |
| - |
| - |
| - |
| (20) |
| (6,013,533) |
Net Income |
|
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| 1,040,593 |
| - |
| 1,040,593 |
Allocations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Legal Reserve |
|
| - |
| - |
| 52,030 |
| - |
| - |
| - |
| - |
| (52,030) |
| - |
| - |
Dividends | 23.b |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| (520,193) |
| - |
| (520,193) |
Reserve for Dividend Equalization | 23.c |
| - |
| - |
| - |
| 468,370 |
| - |
| - |
| - |
| (468,370) |
| - |
| - |
Balances as of June 30, 2014 |
|
| 57,000,000 |
| 637,513 |
| 1,433,524 |
| 468,370 |
| 232,465 |
| (81,403) |
| (1,330,492) |
| - |
| (351,993) |
| 58,007,984 |
The accompanying notes are an integral part of these financial statements. |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
19
(Convenience Translation into English from the Original Previously Issued in Portuguese) | |
![]() | BANCO SANTANDER (BRASIL) S.A. AND SUBSIDIARIES STATEMENTS OF CASH FLOWS |
In thousands of Brazilian Real - R$, unless otherwise stated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated |
|
|
| 01/01 to |
| 01/01 to |
| 01/01 to |
| 01/01 to |
| Note |
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Operational Activities |
|
|
|
|
|
|
|
|
|
Net Income |
|
| 1,040,593 |
| 768,073 |
| 1,045,922 |
| 1,110,027 |
Adjustment to Net Income |
|
| 9,767,876 |
| 9,196,198 |
| 11,096,292 |
| 10,923,800 |
Allowance for Loan Losses | 8.f |
| 5,269,981 |
| 6,536,899 |
| 6,043,778 |
| 7,366,268 |
Provision for Legal Proceedings, Administrative and Other | 2,067,676 |
| 1,250,931 |
| 2,406,693 |
| 1,594,610 | ||
Deferred Tax Credits |
|
| 212,715 |
| (580,501) |
| (23,787) |
| (688,555) |
Equity in Affiliates and Subsidiaries | 14 |
| (587,421) |
| (512,761) |
| (291) |
| (5,496) |
Depreciation and Amortization | 28 |
| 2,679,011 |
| 2,724,440 |
| 2,704,523 |
| 2,740,937 |
Recognition (Reversal) Allowance for Other AssetsLosses | 32 |
| (958) |
| (90,756) |
| (1,034) |
| (90,817) |
Result on Sale of Other Assets | 32 |
| (28,919) |
| (117,851) |
| (29,551) |
| (119,629) |
Result on Impairment of Assets | 30&31 |
| 1,271 |
| 95,949 |
| 1,271 |
| 95,949 |
Result on Sale of Investments | 32 |
| - |
| - |
| 43 |
| 163 |
Others |
|
| 154,520 |
| (110,152) |
| (5,353) |
| 30,370 |
Changes on Assets and Liabilities |
|
| (24,268,115) |
| (14,553,688) |
| (26,377,465) |
| (13,703,088) |
Decrease (Increase) in Interbank Investments |
| (2,666,032) |
| (6,482,979) |
| (3,117,710) |
| (5,591,725) | |
Decrease (Increase) in Securities and DerivativeFinancial Instruments | (31,902,927) |
| (5,576,293) |
| (25,752,095) |
| (3,263,014) | ||
Decrease (Increase) in Lending and Leasing Operations | (4,443,436) |
| (11,686,661) |
| (5,526,231) |
| (12,986,639) | ||
Decrease (Increase) in Deposits on Central Bank of Brazil | 2,893,786 |
| 1,756,933 |
| (6,854,009) |
| 1,747,124 | ||
Decrease (Increase) in Other Receivables |
| 8,273,433 |
| (5,755,493) |
| 7,984,578 |
| (6,675,396) | |
Decrease (Increase) in Other Assets |
|
| (15,023) |
| (275,379) |
| 57,187 |
| (185,210) |
Net Change on Other Interbank and Interbranch Accounts | (11,209,407) |
| (1,169,408) |
| (1,472,629) |
| (1,169,410) | ||
Increase (Decrease) in Deposits |
|
| 15,940,975 |
| (7,234,561) |
| (95,315) |
| (398,055) |
Increase (Decrease) in Money Market Funding |
| 2,994,470 |
| 15,251,019 |
| 11,483,356 |
| 6,342,495 | |
Increase (Decrease) in Borrowings |
|
| 876,479 |
| 1,114,726 |
| 1,331,331 |
| 1,137,326 |
Increase (Decrease) in Other Liabilities |
|
| (5,030,641) |
| 6,031,857 |
| (4,105,931) |
| 8,325,301 |
Increase (Decrease) in Change in Deferred Income | 20,208 |
| 29,564 |
| 26,972 |
| 29,579 | ||
Tax Paid |
|
| - |
| (557,013) |
| (336,969) |
| (1,015,464) |
Net Cash Provided by (Used in) Operational Activities | (13,459,646) |
| (4,589,417) |
| (14,235,251) |
| (1,669,261) | ||
Investing Activities |
|
|
|
|
|
|
|
|
|
Acquisition of Investment |
|
| (94,093) |
| (160,137) |
| (2,485) |
| (70,831) |
Acquisition of Fixed Assets |
|
| (194,157) |
| (541,481) |
| (222,356) |
| (644,419) |
Acquisition of Intangible Assets |
|
| (219,672) |
| (199,278) |
| (243,939) |
| (300,609) |
Net Cash Received on Sale/Reduction of Investments | 14 |
| 6,303 |
| 3,948,332 |
| 6,261 |
| 15 |
Proceeds from Assets not in Use |
|
| 62,878 |
| 15,935 |
| 63,895 |
| 18,130 |
Proceeds from Property for Own Use |
|
| 8,320 |
| 87,317 |
| 2,063 |
| 87,839 |
Dividends and Interest on Capital Received |
| 320,966 |
| 63,257 |
| 11,550 |
| 27,258 | |
Net Cash Provided by (Used in) Investing Activities |
| (109,455) |
| 3,213,945 |
| (385,011) |
| (882,617) | |
Financing Activities |
|
|
|
|
|
|
|
|
|
Restructuring of Capital | 23.f |
| (6,000,000) |
| - |
| (6,000,000) |
| - |
Issuance Debt Instruments Eligible to Compose Capital | 23.f |
| 6,000,000 |
| - |
| 6,000,000 |
| - |
Acquisition of Own Share | 23.d & f |
| (73,799) |
| (24,484) |
| (73,799) |
| (24,484) |
Issuance of Long - Term Emissions |
|
| 22,949,639 |
| 26,168,463 |
| 23,680,649 |
| 27,218,715 |
Long - Term Payments |
|
| (25,140,715) |
| (21,319,004) |
| (25,720,284) |
| (21,769,588) |
Subordinated Debts - Payments |
|
| (509,836) |
| - |
| (509,836) |
| - |
Debt Instruments Eligible to Compose Capital - Payments |
| (60,331) |
| - |
| (60,331) |
| - | |
Dividends and Interest on Capital Paid |
|
| (1,453,723) |
| (1,143,448) |
| (1,458,413) |
| (1,197,003) |
Increase (Decrease) on Minority Interest |
|
| - |
| - |
| 10,010 |
| 94,682 |
Net Cash Provided by (Used in) Financing Activities | (4,288,765) |
| 3,681,527 |
| (4,132,004) |
| 4,322,322 | ||
Net Increase in Cash and Cash Equivalents |
| (17,857,866) |
| 2,306,055 |
| (18,752,266) |
| 1,770,444 | |
Cash and Cash Equivalents at the Beginning of Period | 4 |
| 36,803,310 |
| 18,301,855 |
| 38,031,746 |
| 19,947,372 |
Cash and Cash Equivalents at the End of Period | 4 |
| 18,945,444 |
| 20,607,910 |
| 19,279,480 |
| 21,717,816 |
The accompanying notes are an integral part of these financial statements. |
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|
20
(Convenience Translation into English from the Original Previously Issued in Portuguese) | |
![]() | BANCO SANTANDER (BRASIL) S.A. AND SUBSIDIARIES STATEMENTS OF VALUE ADDED |
In thousands of Brazilian Real - R$, unless otherwise stated |
Bank 01/01 to 06/30/2013 | 01/01 to 06/30/2014 | Consolidated 01/01 to 06/30/2013 | |||||||||||||||
01/01 to | |||||||||||||||||
| Note |
| 06/30/2014 |
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Financial Income |
|
| 27,337,913 |
|
|
| 25,484,351 |
|
|
| 27,756,305 |
|
|
| 26,968,804 |
|
|
Income from Services Rendered and Banking Fees | 26 |
| 4,678,703 |
|
|
| 4,588,595 |
|
|
| 5,315,866 |
|
|
| 5,213,880 |
|
|
Allowance for Loans Losses | 8.f |
| (5,269,981) |
|
|
| (6,536,899) |
|
|
| (6,043,778) |
|
|
| (7,366,268) |
|
|
Other Income and Expenses |
|
| (917,987) |
|
|
| 613,270 |
|
|
| (1,202,948) |
|
|
| 432,864 |
|
|
Financial Expenses |
|
| (13,660,788) |
|
|
| (13,457,361) |
|
|
| (11,957,344) |
|
|
| (12,494,683) |
|
|
Third-party Input |
|
| (2,962,495) |
|
|
| (2,938,095) |
|
|
| (3,209,368) |
|
|
| (3,209,902) |
|
|
Materials, Energy and Others |
|
| (121,426) |
|
|
| (130,998) |
|
|
| (122,469) |
|
|
| (132,449) |
|
|
Third-Party Services | 28 |
| (1,023,114) |
|
|
| (927,305) |
|
|
| (1,152,905) |
|
|
| (1,100,255) |
|
|
Impairment of Assets | 31 |
| (1,271) |
|
|
| (95,949) |
|
|
| (1,271) |
|
|
| (95,949) |
|
|
Others |
|
| (1,816,684) |
|
|
| (1,783,843) |
|
|
| (1,932,723) |
|
|
| (1,881,249) |
|
|
Gross Added Value |
|
| 9,205,365 |
|
|
| 7,753,861 |
|
|
| 10,658,733 |
|
|
| 9,544,695 |
|
|
Retentions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization | 28 |
| (2,679,011) |
|
|
| (2,724,440) |
|
|
| (2,704,523) |
|
|
| (2,740,937) |
|
|
Added Value Produced Net |
|
| 6,526,354 |
|
|
| 5,029,421 |
|
|
| 7,954,210 |
|
|
| 6,803,758 |
|
|
Added Value Received from Transfer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in Affiliates and Subsidiaries | 14 |
| 587,421 |
|
|
| 512,761 |
|
|
| 291 |
|
|
| 5,496 |
|
|
Added Value to Distribute |
|
| 7,113,775 |
|
|
| 5,542,182 |
|
|
| 7,954,501 |
|
|
| 6,809,254 |
|
|
Added Value Distribution |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee |
|
| 2,935,482 |
| 41.3% |
| 2,874,355 |
| 51.8% |
| 3,112,748 |
| 39.1% |
| 3,057,696 |
| 44.9% |
Compensation | 27 |
| 1,638,447 |
|
|
| 1,641,188 |
|
|
| 1,738,807 |
|
|
| 1,740,150 |
|
|
Benefits | 27 |
| 544,057 |
|
|
| 536,945 |
|
|
| 578,467 |
|
|
| 567,024 |
|
|
Government Severance Indemnity Funds for Employees - FGTS |
| 157,786 |
|
|
| 127,829 |
|
|
| 166,441 |
|
|
| 135,077 |
|
| |
Others |
|
| 595,192 |
|
|
| 568,393 |
|
|
| 629,033 |
|
|
| 615,445 |
|
|
Taxes and Contributions |
|
| 2,787,853 |
| 39.2% |
| 1,547,800 |
| 27.9% |
| 3,347,878 |
| 42.1% |
| 2,145,069 |
| 31.5% |
Federal |
|
| 2,588,209 |
|
|
| 1,352,022 |
|
|
| 3,118,093 |
|
|
| 1,916,892 |
|
|
State |
|
| 602 |
|
|
| 296 |
|
|
| 604 |
|
|
| 351 |
|
|
Municipal |
|
| 199,042 |
|
|
| 195,482 |
|
|
| 229,181 |
|
|
| 227,826 |
|
|
Compensation of Third-Party Capital - Rental | 28 |
| 349,847 |
| 4.9% |
| 351,954 |
| 6.4% |
| 364,545 |
| 4.6% |
| 358,713 |
| 5.3% |
Remuneration of Interest on Capital |
|
| 1,040,593 |
| 14.6% |
| 768,073 |
| 13.9% |
| 1,129,330 |
| 14.2% |
| 1,247,776 |
| 18.3% |
Dividends |
|
| 520,193 |
|
|
| - |
|
|
| 520,193 |
|
|
| - |
|
|
Interest on Capital | 23.b |
| - |
|
|
| 300,000 |
|
|
| - |
|
|
| 300,000 |
|
|
Profit Reinvestment |
|
| 520,400 |
|
|
| 468,073 |
|
|
| 525,729 |
|
|
| 810,027 |
|
|
Participation Results of Minority of Shareholders |
|
| - |
|
|
| - |
|
|
| 83,408 |
|
|
| 137,749 |
|
|
Total |
|
| 7,113,775 |
| 100.0% |
| 5,542,182 |
| 100.0% |
| 7,954,501 |
| 100.0% |
| 6,809,254 |
| 100.0% |
The accompanying notes are an integral part of these financial statements. |
21
(Convenience Translation into English from the Original Previously Issued in Portuguese) | |
![]() | BANCO SANTANDER (BRASIL) S.A. AND SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS |
In thousands of Brazilian Real - R$, unless otherwise stated |
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1. General Information | ||||||||||||||
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Banco Santander (Brasil) S.A. (Banco Santander or Bank), indirectly controlled by Banco Santander, S.A., based in Spain (Banco Santander Spain), is the lead institution of the financial and economic-financial group (Conglomerate Santander) before the Central Bank of Brazil (Bacen), established as a corporation, with headquarters at Presidente Juscelino Kubitschek Avenue, 2041 e 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, lending and financing, mortgage lending, leasing, credit card operations and foreign exchange. Through its subsidiaries, the bank also operates in the leasing, buying club management and securities, insurance brokerage operations, capitalization and pension plan. The bank's activities are conducted within the context of a group of institutions that operate on integrated basis in the financial and capital markets. | ||||||||||||||
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2. Presentation of Financial Statements | ||||||||||||||
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Banco Santander's financial statements, which include its foreign branches (Bank) and the consolidated financial statements (Consolidated) have been prepared in accordance with accounting practices, established by Brazilian Corporate Law, in conjunction with standards set forth by the National Monetary Council (CMN), the Bacen, and the standard chart of Accounts for Financial Institutions (COSIF) and the Brazilian Securities and Exchange Commission (CVM), which do not conflict with the rules issued by Bacen. The consolidated financial statements include the Bank and its affiliates and subsidiaries listed in Note 14, the Special Purpose - Brazil Foreign Diversified Payment Right's Finance Company (Brazil Foreign) participating company of the securitization of future flow of payment orders received from abroad (Note 17.c) and investment funds, where the Santander Group companies are the main beneficiaries or holders the main obligations. The portfolios of these investment funds are classified by type of operation and are distributed in the same categories that were originally allocated. | ||||||||||||||
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Funds Consolidated Investments | ||||||||||||||
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Ÿ Santander Fundo de Investimento Amazonas Multimercado Crédito Privado de Investimento no Exterior (Santander FI Amazonas); | ||||||||||||||
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Ÿ Santander Fundo de Investimento Diamantina Multimercado Crédito Privado de Investimento no Exterior (Santander FI Diamantina); | ||||||||||||||
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Ÿ Santander Fundo de Investimento Guarujá Multimercado Crédito Privado de Investimento no Exterior (Santander FI Guarujá); | ||||||||||||||
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Ÿ Santander Fundo de Investimento Unix Multimercado Crédito Privado (Santander FI Unix); | ||||||||||||||
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Ÿ Santander Fundo de Investimento Capitalization Renda Fixa (Santander FI Capitalization); | ||||||||||||||
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Ÿ Santander Fundo de Investimento SBAC Referenciado DI Crédito Privado (Santander FI SBAC); | ||||||||||||||
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Ÿ Santander FIC FI Contract I Referenciado DI (Santander FIC FI Contract); | ||||||||||||||
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Ÿ Santander Paraty QIF PLC (Santander Paraty); and |
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Ÿ Santander Fundo de Investimento Financial Curto Prazo (Santander FI Financial). | ||||||||||||||
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In preparing the consolidated financial statements equity in subsidiaries, significant balances receivable and payable, and revenues and expenses arising from transactions between domestic branches, foreign branches and subsidiaries, and unrealized profits between these entities have been eliminated, and non-controlling interests are stated separately in stockholders’ equity and in the income statements. The balance sheet and income statement components of jointly-controlled subsidiaries have been consolidated proportionaly to the equity interest held in the subsidiary. | ||||||||||||||
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Leasing operations have been reclassified, in order to reflect its financial position in conformity with the financial method of accounting. | ||||||||||||||
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The preparation of financial statements requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities and the reported amounts of revenues and expenses for the reporting periods. Since Management’s judgment involves making estimates concerning the likelihood of future events, actual amounts could differ from those estimates. | ||||||||||||||
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The Financial Statements of the period ended on June 30, 2014 were approved by Board of Directors at the meeting held on July 30, 2014. | ||||||||||||||
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These consolidated interim financial statements prepared and are presented in accordance with IAS 34, Interim Financial Reporting, from 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 IFRIC) (IFRS) for the period ended June 30, 2014 were be disclosed legal deadline, at the website www.santander.com.br/ri.
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22
3. Significant Accounting Practices | ||||||||||||||
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a) Results of Operations | ||||||||||||||
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Determined on the accrual basis of accounting and includes income, charges, inflation adjustment and exchange rate changes earned or incurred through the balance sheet date, on a daily pro rata basis. | ||||||||||||||
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b) Functional Currency | ||||||||||||||
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Functional Currency and Presentation Currency | ||||||||||||||
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The financial statements are presented in Brazilian real (R$), which is the functional and presentation currency of Banco Santander. | ||||||||||||||
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Assets and liabilities of foreign branch and subsidiary are translated as follows: | ||||||||||||||
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Ÿ Assets and liabilities are translated at the exchange rate on the balance sheet date; and | ||||||||||||||
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Ÿ Revenues and expenses are translated at the monthly average exchange rates. | ||||||||||||||
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c) Current and Long-Term Assets and Liabilities | ||||||||||||||
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Stated at their realizable or settlement amounts and include income, charges, inflation adjustments or changes in exchange rates earned and/or incurred through the end of the reporting period, calculated on a daily pro rata basis, when applicable, the effect of adjustments to write down the cost of assets to their fair or realizable values. | ||||||||||||||
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Receivables and payables up to 12 months are classified in current assets and liabilities, respectively. Trading securities that, regardless of their maturity, are classified in short-term, in conformity with Bacen Letter 3.068/2001. | ||||||||||||||
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d) Cash and Cash Equivalents | ||||||||||||||
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For purposes of the statements of cash flows, cash and cash equivalents correspond to the balances of cash and interbank investments immediately convertible into cash or with original maturity equal to ninety days or less. | ||||||||||||||
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e) Securities | ||||||||||||||
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Securities are stated and classified into the following categories: |
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I - Trading securities; |
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II - Available-for-sale securities; and |
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III - Held-to-maturity securities. |
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Trading securities include securities purchased for the purpose of being actively and frequently traded while held-to-maturity securities include those for which the Bank has a positive intent and ability to hold to maturity. Available-for-sale securities include those which cannot be classified in categories I (trading) and III (held-to-maturity). Securities classified into categories I and II are stated at acquisition cost plus income earned through the balance sheet date, calculated on a daily pro rata basis, and adjusted to fair value, with gains or losses on such adjustment being recorded against: | ||||||||||||||
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(1) The corresponding income or expense account, net of tax effects, in profit or losses for the period, when relating to securities classified into the trading category; and | ||||||||||||||
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(2) A separate account in stockholders’ equity,net of taxes effects, when related to securities classified into the available-for-sale category. The adjustments to fair value recorded on sale of these securities are transferred to income for the period. | ||||||||||||||
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Securities classified into the held-to-maturity category are stated at acquisition cost plus income earned through the balance sheet, calculated on a daily pro rata basis. | ||||||||||||||
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Any permanent losses recorded on the realizable value of securities classified into available-for-sale and held-to-maturity are recognized in the income of the period. | ||||||||||||||
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f) Derivatives Financial Instruments | ||||||||||||||
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Derivatives are classified according to Management's intent to use them for hedging purposes or not. Transactions made at customers' request, on own account, or that do not qualify as hedge accounting, especially derivatives used to manage the global risk exposure, are reported at fair value, with realized and unrealized gains and losses recorded in income for the period. | ||||||||||||||
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Derivative financial instruments designated as part of a framework of protection against risks ("hedge") can be classified as: | ||||||||||||||
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I - Market risk hedge; and | ||||||||||||||
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II - Cash flow hedge. | ||||||||||||||
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Derivatives designated as hedge and the respective hedged items are adjusted to fair value, considering the following: | ||||||||||||||
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(1) For those classified in category I, the increase or decrease is recorded in income or expense for the period, net of tax effects; and | ||||||||||||||
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(2) For those classified in category II, the increase or decrease is recorded in a separate caption in stockholders’ equity, net of tax effects. | ||||||||||||||
23
Some hybrid financial instruments contain both a derivative financial instrument and a non-derivative asset or liability.In these cases, the derivative financial instrument represents an embedded derivative. Embedded derivatives are recorded separately from the host contracts they are related to. | ||||||||||||||
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g) Loan Portfolio and Allowance for Losses |
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The loan portfolio includes lending operations, leasing operations, advances on exchange contracts and other loans with credit characteristics. It is stated at present value, considering the indexes, interest rates and charges agreed, calculated "pro rata" days until the balance sheet date. For lending operations overdue 60 days from the recognition of revenue only occur when its actually received. | ||||||||||||||
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Normally, the Bank writes off loans when they are more than 360 days late. In the case of long-term loans (over 3 years), they are written off when they are up to 540 days late. The lending operation write off for loss is recorded in a memorandum account for a minimum of 5 years and while not having exhausted all the procedures for collection. | ||||||||||||||
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The credit assignments without risk retention result in lower financial assets involved in the transaction, which are now kept in a memorandum account.The result of the assignment of credit is fully recognized when theyre realized. | ||||||||||||||
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Since January 2012, as determined by CMN Resolution 3.533/2008 and Resolution 3.895/2010, all credit assignments with risk retention will have their results recognized by the remaining terms of operations, and financial assets subject to the assignment shall remain registered as lending operations and the amount received as obligations for sale operations or transfer of financial assets. The credit assignments made by December 2011 were accounted for in accordance with current regulations with the recognition of income at the time of divestiture, independent of the retention of the risk. | ||||||||||||||
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Allowances for loan losses are recognized based on analysis of outstanding lending operations (past-due and current), past experience, future expectations, specific portfolio risks, and Management risk assessment policy for recognizing allowances, including those required by CMN and Bacen standards. | ||||||||||||||
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On December 31, 2013, the Bank changed the presentation of the corresponding normal and abnormal credit balance, where until September 30, 2013 all operations resulting from a renegotiation process were presented as abnormal credits. From the first quarter of 2014, will be considered as abnormal credits only those operations resulting from a renegotiation process that the balance sheet date, have more than 15 days late, so being informed as the normal credits too. Said retrospective amendment takes effect on the presentation of the Note 8.e, being that it has no effect on individual and consolidated balance sheets or individual and consolidated income statement. | ||||||||||||||
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h) Non-Current Assets Held for Sale and Other Assets |
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Non-current assets held for sale includes the carrying amount of individual items, 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. | ||||||||||||||
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Other assets refer mainly to assets not for own use, consisting basically of properties and vehicles received as payment in kind. | ||||||||||||||
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Non-current assets held for sale and assets not for own use are generally measured at the lower of fair value less costs to sell and their carrying amount at the date of classification in this category, and are not depreciated. | ||||||||||||||
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i) Prepaid Expenses | ||||||||||||||
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Funds used in advance payments, whose benefits will be derived or services will be provided in future years, are allocated to profit or loss over the term of the related agreements. | ||||||||||||||
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j) Permanent Assets | ||||||||||||||
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Stated at acquisition cost, are tested for impairment annually or more frequently or circumstances indicate that assets may be impaired, and valued considering the following aspects: | ||||||||||||||
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j.1) Investments | ||||||||||||||
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Adjustments to investments in affiliates and subsidiaries are measured under the equity method of accounting and recorded as investments in affiliates and subsidiaries. Other investments are stated at cost, reduced to fair value, when applicable. | ||||||||||||||
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j.2) Fixed Assets | ||||||||||||||
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Depreciation of fixed assets is determined under the straight-line method at the following annual rates: buildings - 4%, facilities, furniture, equipment in use, security systems and communications - 10%, data processing systems and vehicles - 20%, and leasehold improvements - 10% or through the maturity of the rental contracts. | ||||||||||||||
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j.3) Intangible Assets | ||||||||||||||
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Goodwill on acquisition of subsidiaries is amortized over 10 years, based on expected future earnings and is tested for impairment annually or more frequently if conditions or circumstances indicate that the asset may be impaired. | ||||||||||||||
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Goodwill on merger and the related reduction account and, provision for maintenance of integrity of the acquiring company's shareholders' equity, when applicable are amortized over 10 years, based on expected future earnings. | ||||||||||||||
24
Exclusivity contracts for provision of banking services are accouted the payments related to the commercial partnership contracts with the private and public sectors to assure exclusivity for banking services of payroll credit processing and payroll loans, maintenance of collection portfolio, supplier payment services and other banking services, are allocated to income over the term of the respective agreements. | ||||||||||||||
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Software aquisition and development expenses are amortized over a maximum of 5 years. | ||||||||||||||
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k) Technical Reserves Related to Capitalization Activities |
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Technical reserves are recognized and calculated in accordance with the provisions and criteria established in the National Council of Private Insurance (CNSP) and Superintendence of Private Insurance (Susep). | ||||||||||||||
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Technical Provisions for Capitalization are Recognized in Accordance with the Criteria Below: | ||||||||||||||
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• The mathematical reserve for redemptions results from the accumulation of the percentage applicable on payments made, capitalized at the interest rate defined under plan and adjusted based on the managed prime rate applicable to savings accounts (TR); | ||||||||||||||
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• The provision for early redemption of bonds is recognized when bonds are cancelled due to default or upon customer's request based on the amount of the mathematical reserve for redemptions as of the cancellation date and the provision for the redemption of bonds by the end of the effective term of the bond; | ||||||||||||||
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• The provision for drawings is recognized based on the percentage of the portion paid and is intended to cover the drawings not yet made in which the bonds will participate and the provision for drawings is recognized for bonds drawn but not yet paid; | ||||||||||||||
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• The administrative provision is intended to reflect the present value of future expenses on capitalization bonds whose effective term will extend beyond their recognition date; and | ||||||||||||||
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• The contingency provision is recognized to cover any obligations to customers. | ||||||||||||||
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l) Employees Benefit Plans | ||||||||||||||
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Post-employment benefit plans include the commitments of the Bank: (i) addition to the benefits of public pension plan; and (ii) medical assistance in case of retirement, permanent disability or death for that employees, and their direct beneficiaries. | ||||||||||||||
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Defined Contribution Plans | ||||||||||||||
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Defined benefit 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. | ||||||||||||||
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The contributions made in this connection are recognized under personnel expenses in the income statement. | ||||||||||||||
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Defined Benefit Plans | ||||||||||||||
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Defined benefit plan is the post-employment benefit plan which is not a defined contribution plan and is shown in Note 34. For this type of plan, the sponsoring entity's obligation is to provide the agreed benefits with employees, assuming the potential actuarial risk that benefits will cost more than expected. | ||||||||||||||
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Since January 2013, Banco Santander apply CPC 33 (R1) that provides substantially the full recognition of liabilities when on account actuarial losses (actuarial deficit) recognized will not occur, in contrast to the equity (other valuation adjustments). | ||||||||||||||
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Main Definitions | ||||||||||||||
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- The present value of the defined benefit obligation is the present value of expected future payments required to settle the obligation resulting from employee service in the current and past periods, without deducting any plan assets. | ||||||||||||||
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- Deficit or surplus is: (a) the present value of the defined benefit obligation, less (b) the fair value of plan assets. | ||||||||||||||
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- The sponsoring entity may recognize the plan's assets in the balance sheet when they meet the following characteristics: (i) the assets of the fund are sufficient to meet all employee benefit plan or a sponsor obligations; or (ii) the assets are returned to the sponsoring entity in order to reimburse it for employee benefits already paid. | ||||||||||||||
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- Actuarial gains and losses are changes in 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. | ||||||||||||||
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- Current service cost is the increase in the present value of the defined benefit obligation resulting from employee service in the current period. | ||||||||||||||
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-The past service cost is the change in present value of defined benefit obligation for employee service in prior periods resulting from a change in the plan or reductions in the number of employees covered. | ||||||||||||||
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Post-employment benefits are recognized in income in the lines of other operating expenses - actuarial losses - retirement plans and expenses (Note 31). | ||||||||||||||
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The defined benefit plans are recorded based on an actuarial study, conducted annually by an external consultarit, at the end of each year to be effective for the subsequent period. | ||||||||||||||
25
m) Share Based Compensation | ||||||||||||||
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The Bank has compensation plans with long-term conditions for acquisition. The main conditions for acquisition are: (1) conditions of service, provided that the participant remains employed during the period of the Plan to acquire a position to exercise their rights; (2) performance conditions, the amount of investment in Certificates of Deposit Shares (Units) exercisable by the participants will be determined according to the result of measurement of a performance parameter of the Bank: Total Shareholder Return (TSR) may be reduced, if not achieved the goals of reducing Return on Risk-Adjusted Capital (RORAC), comparison between realized and budgeted in each year, as determined by the Board of Directors and (3) market conditions, since some parameters are constrained to the value of the shares of the Bank. 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 market conditions for each plan at the estimated fair value. | ||||||||||||||
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Settlement in Share | ||||||||||||||
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The fair value of services is measured by reference to the fair value of the equity instruments granted at the grant date, taking into account market conditions for each plan at the estimated fair value. In order to recognize the staff costs in contrast with the capital reserves during the period covered, as the services are received, it is considered the treatment of conditions of service and the amount recognized for services received over the period of assessment based on the best estimate for the number of equity instruments expected to vest. | ||||||||||||||
Settlement in Cash | ||||||||||||||
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For share-based payments settled in cash (in the form of share valuation), the services provided are measured and the corresponding liabilities incurred in the fair value valuation of the shares at grant date and until the liability is settled, the fair value of liability is revalued at the end of each reporting period and the date of settlement, with any changes in fair value recognized in the income. In order to recognize the staff costs in contrast with the provisions in "wages payable" throughout the term, reflecting the period in which services are received, the total liability is based on the best estimate of the amount of right of recovery of shares that will be acquired at the end of the period of validity and recognizes the value of the services received during the period of validity based on the best available estimate. Periodically, analysis is performed of the estimated number of stock appreciation rights to be acquired at the end of the grace period. | ||||||||||||||
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n) Funding, Notes Issued and Other Liabilities | ||||||||||||||
Financial liabilities instruments are recognized initially at fair value, consided as the transaction price. They are subsequently measured at amortized cost with expenses recognized as a financial cost (Note 17.d). | ||||||||||||||
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Among the liabilities initial recognition methods of, it is important to emphasize those compound financial instruments which are classified as such due to the fact that the instrument contain both a debt instrument (liability), and an embedded equity component (derivative). | ||||||||||||||
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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 net component (derivative convertible into ordinary shares). | ||||||||||||||
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In accordance to the COSIF, the hybrid capital instruments and debt representing obligations financial institutions and should be recorded in specific accounts of the valued liabilities adjusted according for the effect of exchange rate variation, when denominated in currency foreign.All the remunerations related to these instruments, such as interest and exchange variation (difference between the functional currency and the currency in which the instrument was called) shall be accounted expenses in the period in compliance the accrual basis method. | ||||||||||||||
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In relation the stockholders' equity component,your registration occurs at the initial moment on grounds of their fair value, if different from zero. | ||||||||||||||
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The relevant details of these issued instruments composed nature are described in Notes 20 and 23.f. | ||||||||||||||
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o) Contingent Assets and Liabilities and Legal Obligations | ||||||||||||||
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Banco Santander and its subsidiaries are involved in judicial and administrative proceedings related to tax, labor and civil, in the normal course of their activities. | ||||||||||||||
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The judicial and administrative proceedings are recognized in the accounts based on the nature, complexity and history of actions and beliefs of the internal and external legal advisors. | ||||||||||||||
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Provisions are made when the risk of loss of judicial or administrative action is assessed as probable and the amounts involved can be measured with sufficient accuracy, based on best available information. The provisions include legal obligations, judicial 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. They are fully or partially reversed when the obligations cease to exist or are reduced. | ||||||||||||||
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Contingent liabilities are possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or nonoccurrence of one or more future events that are not totally under the control of the consolidated entities. Under accounting rules, contingent liabilities classified as possible losses are not recognized, but disclosed in the notes to the financial statements (Note 22.h). | ||||||||||||||
26
Contingent assets are not recognized, except when there are guarantees or favorable judicial 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. | ||||||||||||||||||||||||||||
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p) Social Integration Program (PIS) and Contribution for the Financing of Social Security (Cofins) | ||||||||||||||||||||||||||||
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The PIS (0.65%) and Cofins (4.00%) are calculated under gross revenue and expenses. Financial institutions may deduct financial expenses in the establishment of this base. PIS and Cofins expenses are recorded in tax expenses. | ||||||||||||||||||||||||||||
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q) Income Tax (IRPJ) and Social Contribution on Net Income (CSLL) | ||||||||||||||||||||||||||||
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IRPJ is calculated at the rate of 15% plus a surtax of 10% and CSLL is calculated at the rate of 15% for financial institutions and 9% for the other companies, after adjustments required by tax legislation. Tax credits and deferred liabilities are calculated, basically, on certain temporary differences between accounting and taxable income, on tax losses and adjustments of securities and derivatives at fair value. | ||||||||||||||||||||||||||||
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In accordance with the current regulation, the expected realization of the tax credits Note 11.b is based on the projections of future earnings supported by a technical study, approved by Banco Santander's Management, at the meeting held on July 30, 2014. | ||||||||||||||||||||||||||||
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r) Deferred Income | ||||||||||||||||||||||||||||
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Refers to income received before the maturity of the underlying obligation and include non-refundable income, primarily related to guarantees and sureties given and credit card annual fees. The allocation to income is made in accordance with the terms of the agreements. | ||||||||||||||||||||||||||||
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s) Subsequent Event | ||||||||||||||||||||||||||||
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Corresponds to the event occurring between the date of the financial statements and the date on which it was authorized to issue such statements, and comprise by: | ||||||||||||||||||||||||||||
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Ÿ Events that originate adjustments: are those that evidence of condition that existed at the date of the financial statements; and | ||||||||||||||||||||||||||||
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Ÿ Events that don't originate adjustments: are those that evidence of conditions that did not exist on the base date of the financial statements. | ||||||||||||||||||||||||||||
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| ||||||||||||||||
4. Cash and Cash Equivalents | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| Bank | ||||||||||||||||
|
|
|
|
|
|
|
| 06/30/2014 |
| 12/31/2013 |
| 06/30/2013 | 12/31/2012 | |||||||||||||||
Cash |
|
|
|
|
|
|
| 4,670,666 |
| 5,290,047 |
| 4,437,335 | 4,653,214 | |||||||||||||||
Interbank Investments |
|
|
|
|
| 14,274,778 |
| 31,513,263 |
| 16,170,575 | 13,648,641 | |||||||||||||||||
Money Market Investments |
|
|
| 5,051,213 |
| 19,659,462 |
| 5,821,130 | 4,273,832 | |||||||||||||||||||
Interbank Deposits |
|
|
|
|
| 575,887 |
| 369,975 |
| 524,791 | 486,036 | |||||||||||||||||
Foreign Currency Investments |
|
|
| 8,647,678 |
| 11,483,826 |
| 9,824,654 | 8,888,773 | |||||||||||||||||||
Total |
|
|
|
|
|
|
| 18,945,444 |
| 36,803,310 |
| 20,607,910 | 18,301,855 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated | |||||||||||||||
|
|
|
|
|
|
|
| 06/30/2014 |
| 12/31/2013 |
| 06/30/2013 | 12/31/2012 | |||||||||||||||
Cash |
|
|
|
|
|
|
| 5,004,702 |
| 5,485,679 |
| 4,533,536 | 4,742,486 | |||||||||||||||
Interbank Investments |
|
|
|
|
| 14,274,778 |
| 32,546,067 |
| 17,184,280 | 15,204,886 | |||||||||||||||||
Money Market Investments |
|
|
| 5,051,213 |
| 19,659,462 |
| 5,821,130 | 4,273,832 | |||||||||||||||||||
Interbank Deposits |
|
|
|
|
| 575,887 |
| 227,905 |
| 41,630 | 535,536 | |||||||||||||||||
Foreign Currency Investments |
|
|
| 8,647,678 |
| 12,658,700 |
| 11,321,520 | 10,395,518 | |||||||||||||||||||
Total |
|
|
|
|
|
|
| 19,279,480 |
| 38,031,746 |
| 21,717,816 | 19,947,372 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
27
5. Interbank Investments | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank | |
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
|
|
|
|
|
| Up to |
| From 3 to |
| Over |
|
|
|
|
|
|
|
|
|
| 3 Months |
| 12 Months |
| 12 Months |
| Total |
| Total |
Money Market Investments |
| 19,693,313 |
| 1,421,561 |
| - |
| 21,114,874 |
| 28,695,443 | ||||
Own Portfolio |
|
|
| 6,838,570 |
| 536,135 |
| - |
| 7,374,705 |
| 2,977,396 | ||
National Treasury Bills - LTN |
| 1,308,408 |
| 259,930 |
| - |
| 1,568,338 |
| 867,351 | ||||
National Treasury Notes - NTN |
| 5,530,162 |
| 276,205 |
| - |
| 5,806,367 |
| 2,110,045 | ||||
Third-party Portfolio |
|
|
| 2,999,995 |
| - |
| - |
| 2,999,995 |
| 14,074,655 | ||
National Treasury Bills - LTN |
| 1,999,999 |
| - |
| - |
| 1,999,999 |
| 5,930,246 | ||||
National Treasury Notes - NTN |
| 999,996 |
| - |
| - |
| 999,996 |
| 8,144,409 | ||||
Sold Position |
|
|
|
| 9,854,748 |
| 885,426 |
| - |
| 10,740,174 |
| 11,643,392 | |
National Treasury Bills - LTN |
| 2,927,596 |
| 279,957 |
| - |
| 3,207,553 |
| 3,117,163 | ||||
National Treasury Notes - NTN |
| 6,927,152 |
| 605,469 |
| - |
| 7,532,621 |
| 8,526,229 | ||||
Interbank Deposits |
|
|
| 3,820,873 |
| 17,704,051 |
| 10,060,692 |
| 31,585,616 |
| 35,583,323 | ||
Foreign Currency Investments |
| 8,647,678 |
| - |
| - |
| 8,647,678 |
| 10,264,464 | ||||
Total |
|
|
|
|
| 32,161,864 |
| 19,125,612 |
| 10,060,692 |
| 61,348,168 |
| 74,543,230 |
Current |
|
|
|
|
|
|
|
|
|
|
| 51,287,476 |
| 62,877,791 |
Long-term |
|
|
|
|
|
|
|
|
|
|
| 10,060,692 |
| 11,665,439 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated |
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
|
|
|
|
|
| Up to |
| From 3 to |
| Over |
|
|
|
|
|
|
|
|
|
| 3 Months |
| 12 Months |
| 12 Months |
| Total |
| Total |
Money Market Investments |
| 19,693,313 |
| 1,421,561 |
| - |
| 21,114,874 |
| 28,696,127 | ||||
Own Portfolio |
|
|
| 7,538,567 |
| 536,135 |
| - |
| 8,074,702 |
| 6,869,880 | ||
National Treasury Bills - LTN |
| 1,808,407 |
| 259,930 |
| - |
| 2,068,337 | 2,163,681 | |||||
National Treasury Notes - NTN |
| 5,730,160 |
| 276,205 |
| - |
| 6,006,365 |
| 4,706,186 | ||||
Debentures |
|
|
|
|
| - |
| - |
| - |
| - |
| 13 |
Third-party Portfolio |
|
|
| 2,299,998 |
| - |
| - |
| 2,299,998 |
| 10,182,855 | ||
National Treasury Bills - LTN |
| 1,500,000 |
| - |
| - |
| 1,500,000 |
| 4,634,587 | ||||
National Treasury Notes - NTN |
| 799,998 |
| - |
| - |
| 799,998 |
| 5,548,268 | ||||
Sold Position |
|
|
|
| 9,854,748 |
| 885,426 |
| - |
| 10,740,174 |
| 11,643,392 | |
National Treasury Bills - LTN |
| 2,927,596 |
| 279,957 |
| - |
| 3,207,553 |
| 3,117,163 | ||||
National Treasury Notes - NTN |
| 6,927,152 |
| 605,469 |
| - |
| 7,532,621 |
| 8,526,229 | ||||
Interbank Deposits |
|
|
| 1,513,881 |
| 1,171,061 |
| 54,090 |
| 2,739,032 |
| 3,884,534 | ||
Foreign Currency Investments |
| 8,647,678 |
| - |
| - |
| 8,647,678 |
| 11,761,330 | ||||
Total |
|
|
|
|
| 29,854,872 |
| 2,592,622 |
| 54,090 |
| 32,501,584 |
| 44,341,991 |
Current |
|
|
|
|
|
|
|
|
|
|
| 32,447,494 |
| 44,233,702 |
Long-term |
|
|
|
|
|
|
|
|
|
|
| 54,090 |
| 108,289 |
28
6. Securities and Derivatives Financial Instruments | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||
a) Securities | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||
I) By Category | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
| Bank | |||
|
|
|
|
|
|
|
|
|
| 06/30/2014 | 06/30/2013 | |||
|
|
|
|
|
| Cost | Fair Value on: | Carrying | Carrying | |||||
|
|
|
|
|
| Amortized | Income |
| Equity | Amount | Amount | |||
Trading Securities |
|
|
| 41,822,328 | 18,480 |
| - | 41,840,808 | 28,123,322 | |||||
Government Securities |
|
|
| 38,662,858 | 16,856 |
| - | 38,679,714 | 25,119,017 | |||||
Private Securities |
|
|
| 3,159,470 | 1,624 |
| - | 3,161,094 | 3,004,305 | |||||
Available-for-Sale Securities |
| 94,655,196 | 48,370 |
| 367,506 | 95,071,072 | 72,215,503 | |||||||
Government Securities |
|
|
| 36,765,245 | - |
| 510,486 | 37,275,731 | 22,258,320 | |||||
Private Securities |
|
|
| 57,889,951 | 48,370 |
| (142,980) | 57,795,341 | 49,957,183 | |||||
Held-to-Maturity Securities |
| 179 | - |
| - | 179 | 611 | |||||||
Government Securities |
|
|
| 179 | - |
| - | 179 | 611 | |||||
Total Securities |
|
|
| 136,477,703 | 66,850 |
| 367,506 | 136,912,059 | 100,339,436 | |||||
Derivatives (Assets) |
|
|
| 4,317,645 | 1,389,647 |
| (9,576) | 5,697,716 | 6,472,261 | |||||
Total Securities and Derivatives |
| 140,795,348 | 1,456,497 |
| 357,930 | 142,609,775 | 106,811,697 | |||||||
Current |
|
|
|
|
|
|
|
|
| 55,510,050 | 39,100,755 | |||
Long-term |
|
|
|
|
|
|
|
|
| 87,099,725 | 67,710,942 | |||
Derivatives (Liabilities) |
|
|
| (3,320,390) | (773,563) |
| (84,193) | (4,178,146) | (5,635,719) | |||||
Current |
|
|
|
|
|
|
|
|
| (1,224,085) | (2,103,655) | |||
Long-term |
|
|
|
|
|
|
|
|
| (2,954,061) | (3,532,064) | |||
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
| Consolidated | |||
|
|
|
|
|
|
|
|
|
| 06/30/2014 | 06/30/2013 | |||
|
|
|
|
|
| Cost | Fair Value on: | Carrying | Carrying | |||||
|
|
|
|
|
| Amortized | Income |
| Equity | Amount | Amount | |||
Trading Securities |
|
|
| 42,818,422 | 18,453 |
| - | 42,836,875 | 28,072,329 | |||||
Government Securities |
|
|
| 40,738,291 | 16,812 |
| - | 40,755,103 | 26,248,321 | |||||
Private Securities |
|
|
| 2,080,131 | 1,641 |
| - | 2,081,772 | 1,824,008 | |||||
Available-for-Sale Securities |
| 54,764,036 | 48,370 |
| 310,618 | 55,123,024 | 42,941,879 | |||||||
Government Securities |
|
|
| 38,165,415 | - |
| 444,394 | 38,609,809 | 26,625,958 | |||||
Private Securities |
|
|
| 16,598,621 | 48,370 |
| (133,776) | 16,513,215 | 16,315,921 | |||||
Held-to-Maturity Securities |
| 179 | - |
| - | 179 | 611 | |||||||
Government Securities |
|
|
| 179 | - |
| - | 179 | 611 | |||||
Total Securities |
|
|
| 97,582,637 | 66,823 |
| 310,618 | 97,960,078 | 71,014,819 | |||||
Derivatives (Assets) |
|
|
| 4,446,301 | 1,464,983 |
| (9,576) | 5,901,708 | 6,519,185 | |||||
Total Securities and Derivatives |
| 102,028,938 | 1,531,806 |
| 301,042 | 103,861,786 | 77,534,004 | |||||||
Current |
|
|
|
|
|
|
|
|
| 57,801,692 | 40,464,371 | |||
Long-term |
|
|
|
|
|
|
|
|
| 46,060,094 | 37,069,633 | |||
Derivatives (Liabilities) |
|
|
| (3,565,123) | (791,705) |
| (115,392) | (4,472,220) | (5,712,580) | |||||
Current |
|
|
|
|
|
|
|
|
| (1,345,207) | (2,238,181) | |||
Long-term |
|
|
|
|
|
|
|
|
| (3,127,013) | (3,474,399) | |||
29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
II) Trading Securities | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
|
|
|
|
| Consolidated |
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
|
|
| Adjustment |
|
|
|
|
|
|
| Adjustment |
|
|
|
|
| Cost |
| to Fair Value- |
| Carrying |
| Carrying |
| Cost |
| to Fair Value- |
| Carrying |
| Carrying |
Trading Securities | Amortized |
| Income |
| Amount |
| Amount |
| Amortized |
| Income |
| Amount |
| Amount |
Government Securities | 38,662,858 |
| 16,856 |
| 38,679,714 |
| 25,119,017 |
| 40,738,291 |
| 16,812 |
| 40,755,103 |
| 26,248,321 |
Treasury Bills - LFT | 442,872 |
| 42 |
| 442,914 |
| 587,615 |
| 2,133,591 |
| (2) |
| 2,133,589 |
| 1,521,052 |
National Treasury Bills - LTN | 22,843,530 |
| (5,714) |
| 22,837,816 |
| 15,378,452 |
| 23,228,244 |
| (5,714) |
| 23,222,530 |
| 15,574,319 |
National Treasury Notes - NTN A | 130,397 |
| 3,235 |
| 133,632 |
| 561,483 |
| 130,397 |
| 3,235 |
| 133,632 |
| 561,483 |
National Treasury Notes - NTN B | 8,164,065 |
| 18,414 |
| 8,182,479 |
| 5,649,188 |
| 8,164,065 |
| 18,414 |
| 8,182,479 |
| 5,649,188 |
National Treasury Notes - NTN C | 2,526 |
| (52) |
| 2,474 |
| 2,742 |
| 2,526 |
| (52) |
| 2,474 |
| 2,742 |
National Treasury Notes - NTN F | 6,967,151 |
| 468 |
| 6,967,619 |
| 2,817,479 |
| 6,967,151 |
| 468 |
| 6,967,619 |
| 2,817,479 |
Agricultural Debt Securities - TDA | 104,700 |
| - |
| 104,700 |
| 101,453 |
| 104,700 |
| - |
| 104,700 |
| 101,453 |
Brazilian Foreign Debt Notes | 7,617 |
| 463 |
| 8,080 |
| 20,605 |
| 7,617 |
| 463 |
| 8,080 |
| 20,605 |
Private Securities | 3,159,470 |
| 1,624 |
| 3,161,094 |
| 3,004,305 |
| 2,080,131 |
| 1,641 |
| 2,081,772 |
| 1,824,008 |
Shares | 69,496 |
| 7,148 |
| 76,644 |
| 356,000 |
| 492,655 |
| 7,149 |
| 499,804 |
| 426,742 |
Receivables Investment Fund - FIDC(1) | 16,200 |
| - |
| 16,200 |
| 21,469 |
| 16,200 |
| - |
| 16,200 |
| 21,469 |
Investment Fund Shares in Participation - FIP | - |
| - |
| - |
| - |
| 39,293 |
| - |
| 39,293 |
| 44,820 |
Investment Fund Shares | 38,758 |
| - |
| 38,758 |
| 5,099 |
| 393,523 |
| - |
| 393,523 |
| 419,656 |
Debentures | 2,987,977 |
| 2,582 |
| 2,990,559 |
| 2,571,316 |
| 972,735 |
| 2,582 |
| 975,317 |
| 796,863 |
Financial Bills - LF | - |
| - |
| - |
| - |
| 112,704 |
| 16 |
| 112,720 |
| 59,509 |
Certificates of Real Estate Receivables - CRI | 47,039 |
| (8,106) |
| 38,933 |
| 50,421 |
| 47,136 |
| (8,106) |
| 39,030 |
| 50,553 |
Bank Deposits Certificates - CDB | - |
| - |
| - |
| - |
| 5,885 |
| - |
| 5,885 |
| 4,396 |
Total | 41,822,328 |
| 18,480 |
| 41,840,808 |
| 28,123,322 |
| 42,818,422 |
| 18,453 |
| 42,836,875 |
| 28,072,329 |
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
Trading Securities |
| Without |
| Up to |
| From 3 to |
| From 1 to |
| Over |
|
|
by Maturity |
| Maturity |
| 3 Months |
| 12 Months |
| 3 Years |
| 3 Years |
| Total |
Government Securities |
| - |
| 5,008,837 |
| 10,447,811 |
| 12,860,860 |
| 10,362,206 |
| 38,679,714 |
Treasury Bills - LFT |
| - |
| 122,824 |
| 105,544 |
| 51,410 |
| 163,136 |
| 442,914 |
National Treasury Bills - LTN |
| - |
| 3,894,667 |
| 9,393,458 |
| 7,633,003 |
| 1,916,688 |
| 22,837,816 |
National Treasury Notes - NTN A |
| - |
| - |
| - |
| - |
| 133,632 |
| 133,632 |
National Treasury Notes - NTN B |
| - |
| 966,975 |
| 601,891 |
| 3,279,687 |
| 3,333,926 |
| 8,182,479 |
National Treasury Notes - NTN C |
| - |
| - |
| - |
| - |
| 2,474 |
| 2,474 |
National Treasury Notes - NTN F |
| - |
| - |
| 322,759 |
| 1,856,322 |
| 4,788,538 |
| 6,967,619 |
Agricultural Debt Securities - TDA |
| - |
| 24,065 |
| 24,159 |
| 40,388 |
| 16,088 |
| 104,700 |
Brazilian Foreign Debt Securities |
| - |
| 306 |
| - |
| 50 |
| 7,724 |
| 8,080 |
Private Securities |
| 131,602 |
| 1,227 |
| 30,934 |
| 14,870 |
| 2,982,461 |
| 3,161,094 |
Shares |
| 76,644 |
| - |
| - |
| - |
| - |
| 76,644 |
Receivables Investment Fund - FIDC(1) |
| 16,200 |
| - |
| - |
| - |
| - |
| 16,200 |
Investment Fund Shares |
| 38,758 |
| - |
| - |
| - |
| - |
| 38,758 |
Debentures |
| - |
| 1,227 |
| - |
| 13,008 |
| 2,976,324 |
| 2,990,559 |
Certificates of Real Estate Receivables - CRI |
| - |
| - |
| 30,934 |
| 1,862 |
| 6,137 |
| 38,933 |
Total |
| 131,602 |
| 5,010,064 |
| 10,478,745 |
| 12,875,730 |
| 13,344,667 |
| 41,840,808 |
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated |
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
Trading Securities |
| Without |
| Up to |
| From 3 to |
| From 1 to |
| Over |
|
|
by Maturity |
| Maturity |
| 3 Months |
| 12 Months |
| 3 Years |
| 3 Years |
| Total |
Government Securities |
| - |
| 5,743,001 |
| 11,258,456 |
| 12,897,154 |
| 10,856,492 |
| 40,755,103 |
Treasury Bills - LFT |
| - |
| 615,513 |
| 772,950 |
| 87,704 |
| 657,422 |
| 2,133,589 |
National Treasury Bills - LTN |
| - |
| 4,136,142 |
| 9,536,697 |
| 7,633,003 |
| 1,916,688 |
| 23,222,530 |
National Treasury Notes - NTN A |
| - |
| - |
| - |
| - |
| 133,632 |
| 133,632 |
National Treasury Notes - NTN B |
| - |
| 966,975 |
| 601,891 |
| 3,279,687 |
| 3,333,926 |
| 8,182,479 |
National Treasury Notes - NTN C |
| - |
| - |
| - |
| - |
| 2,474 |
| 2,474 |
National Treasury Notes - NTN F |
| - |
| - |
| 322,759 |
| 1,856,322 |
| 4,788,538 |
| 6,967,619 |
Agricultural Debt Securities - TDA |
| - |
| 24,065 |
| 24,159 |
| 40,388 |
| 16,088 |
| 104,700 |
Brazilian Foreign Debt Notes |
| - |
| 306 |
| - |
| 50 |
| 7,724 |
| 8,080 |
Private Securities |
| 949,515 |
| 3,861 |
| 57,065 |
| 106,304 |
| 965,027 |
| 2,081,772 |
Shares |
| 499,804 |
| - |
| - |
| - |
| - |
| 499,804 |
Receivables Investment Fund - FIDC(1) |
| 16,200 |
| - |
| - |
| - |
| - |
| 16,200 |
Investment Fund Shares in Participation - FIP |
| 39,293 |
| - |
| - |
| - |
| - |
| 39,293 |
Investment Fund Shares |
| 393,522 |
| - |
| 1 |
| - |
| - |
| 393,523 |
Debentures |
| - |
| 3,419 |
| - |
| 13,008 |
| 958,890 |
| 975,317 |
Financial Bills - LF |
| - |
| - |
| 21,645 |
| 91,075 |
| - |
| 112,720 |
Certificates of Real Estate Receivables - CRI |
| - |
| 97 |
| 30,934 |
| 1,862 |
| 6,137 |
| 39,030 |
Bank Deposits Certificates - CDB |
| 696 |
| 345 |
| 4,485 |
| 359 |
| - |
| 5,885 |
Total |
| 949,515 |
| 5,746,862 |
| 11,315,521 |
| 13,003,458 |
| 11,821,519 |
| 42,836,875 |
32
|
|
|
|
|
|
|
|
|
|
|
III) Available-for-Sale Securities | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
|
|
|
|
| Adjustment to Market1 |
|
|
|
| |
|
| Cost |
|
|
| Fair Value - |
| Carrying |
| Carrying |
Available-for-Sale Securities |
| Amortized |
| Result |
| Equity |
| Amount |
| Amount |
Government Securities |
| 36,765,245 |
| - |
| 510,486 |
| 37,275,731 |
| 22,258,320 |
Treasury Certificates - CFT |
| 381 |
| - |
| 197 |
| 578 |
| 542 |
Securitized Credit |
| 2,305 |
| - |
| 538 |
| 2,843 |
| 2,596 |
Treasury Bills - LFT |
| 433,367 |
| - |
| (17) |
| 433,350 |
| 3,341,936 |
National Treasury Bills - LTN |
| 21,728,823 |
| - |
| 383,854 |
| 22,112,677 |
| 7,593,590 |
National Treasury Notes - NTN A |
| 2,848,712 |
| - |
| 81,540 |
| 2,930,252 |
| 861,458 |
National Treasury Notes - NTN B |
| 4,640,136 |
| - |
| 137,829 |
| 4,777,965 |
| 549,939 |
National Treasury Notes - NTN C(2) |
| 1,296,049 |
| - |
| (40,337) |
| 1,255,712 |
| 2,358,809 |
National Treasury Notes - NTN F(2) (6) |
| 3,269,666 |
| - |
| (213,026) |
| 3,056,640 |
| 6,822,502 |
Brazilian Foreign Debt Bonds(7) |
| 2,164,051 |
| - |
| 139,380 |
| 2,303,431 |
| - |
Mexican Notes |
| - |
| - |
| - |
| - |
| 426,040 |
State and Municipal Bonds - CEPAC |
| - |
| - |
| - |
| - |
| 226,366 |
Debentures(3) |
| 381,755 |
| - |
| 20,528 |
| 402,283 |
| 74,542 |
Private Securities |
| 57,889,951 |
| 48,370 |
| (142,980) |
| 57,795,341 |
| 49,957,183 |
Shares |
| 718,145 |
| - |
| 571 |
| 718,716 |
| 355,982 |
Receivables Investment Fund - FIDC(1) |
| 1,047,041 |
| - |
| - |
| 1,047,041 |
| 1,909,437 |
Investment Fund Shares in Participation - FIP |
| 527,124 |
| - |
| - |
| 527,124 |
| 469,660 |
Investment Fund Shares |
| 521,973 |
| - |
| (58,409) |
| 463,564 |
| 396,621 |
Real Estate Fund Shares |
| 14,590 |
| - |
| (2,985) |
| 11,605 |
| 16,904 |
Debentures (4) |
| 50,688,135 |
| 48,370 |
| (52,162) |
| 50,684,343 |
| 42,486,338 |
Eurobonds |
| 72 |
| - |
| - |
| 72 |
| 4,279 |
Promissory Notes - NP (5) |
| 2,414,483 |
| - |
| 33,753 |
| 2,448,236 |
| 1,952,282 |
Real Estate Credit Notes - CCI |
| 16,331 |
| - |
| 812 |
| 17,143 |
| 19,839 |
Financial Bills - LF |
| 1,095,590 |
| - |
| (2,392) |
| 1,093,198 |
| 1,251,002 |
Certificates of Real Estate Receivables - CRI |
| 846,467 |
| - |
| (62,168) |
| 784,299 |
| 1,094,839 |
Total |
| 94,655,196 |
| 48,370 |
| 367,506 |
| 95,071,072 |
| 72,215,503 |
33
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Consolidated | |
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 | |
|
|
|
|
| Adjustment to Market1 |
|
|
|
| ||
|
| Cost |
|
|
| Fair Value - |
| Carrying |
| Carrying | |
Available-for-Sale Securities |
| Amortized |
| Result |
| Equity |
| Amount |
| Amount | |
Government Securities |
| 38,165,415 |
| - |
| 444,394 |
| 38,609,809 |
| 26,625,958 | |
Treasury Certificates - CFT |
| 381 |
| - |
| 197 |
| 578 |
| 542 | |
Securitized Credit |
| 2,305 |
| - |
| 538 |
| 2,843 |
| 2,596 | |
Treasury Bills - LFT |
| 457,592 |
| - |
| (18) |
| 457,574 |
| 3,528,104 | |
National Treasury Bills - LTN |
| 21,975,834 |
| - |
| 383,957 |
| 22,359,791 |
| 7,926,605 | |
National Treasury Notes - NTN A |
| 2,848,712 |
| - |
| 81,540 |
| 2,930,252 |
| 861,458 | |
National Treasury Notes - NTN B |
| 4,640,136 |
| - |
| 137,829 |
| 4,777,965 |
| 549,939 | |
National Treasury Notes - NTN C(2) |
| 1,296,049 |
| - |
| (40,337) |
| 1,255,712 |
| 2,358,809 | |
National Treasury Notes - NTN F(2) (6) |
| 4,398,600 |
| - |
| (279,220) |
| 4,119,380 |
| 10,670,957 | |
Brazilian Foreign Debt Bonds (7) |
| 2,164,051 |
| - |
| 139,380 |
| 2,303,431 |
| - | |
Mexican Notes |
| - |
| - |
| - |
| - |
| 426,040 | |
State and Municipal Bonds - CEPAC |
| - |
| - |
| - |
| - |
| 226,366 | |
Debentures(3) |
| 381,755 |
| - |
| 20,528 |
| 402,283 |
| 74,542 | |
Private Securities |
| 16,598,621 |
| 48,370 |
| (133,776) |
| 16,513,215 |
| 16,315,921 | |
Shares |
| 871,169 |
| - |
| 13,208 |
| 884,377 |
| 433,202 | |
Receivables Investment Fund - FIDC(1) |
| 1,199,146 |
| - |
| - |
| 1,199,146 |
| 2,057,927 | |
Investment Fund Shares in Participation - FIP |
| 1,432,984 |
| - |
| - |
| 1,432,984 |
| 1,183,595 | |
Investment Fund Shares |
| 180,482 |
| - |
| (58,623) |
| 121,859 |
| 86,101 | |
Real Estate Fund Shares |
| 81,797 |
| - |
| (5,840) |
| 75,957 |
| 87,416 | |
Debentures (4) |
| 8,283,445 |
| 48,370 |
| (52,261) |
| 8,279,554 |
| 8,033,546 | |
Eurobonds |
| 72 |
| - |
| - |
| 72 |
| 4,279 | |
Promissory Notes - NP (5) |
| 2,414,483 |
| - |
| 33,753 |
| 2,448,236 |
| 1,952,282 | |
Real Estate Credit Notes - CCI |
| 16,331 |
| - |
| 812 |
| 17,143 |
| 19,839 | |
Financial Bills - LF |
| 1,272,245 |
| - |
| (2,657) |
| 1,269,588 |
| 1,362,895 | |
Certificates of Real Estate Receivables - CRI |
| 846,467 |
| - |
| (62,168) |
| 784,299 |
| 1,094,839 | |
Total |
| 54,764,036 |
| 48,370 |
| 310,618 |
| 55,123,024 |
| 42,941,879 | |
34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
Available-for-Sale Securities |
| Without |
| Up to |
| From 3 to |
| From 1 to |
| Over |
|
|
by Maturity |
| Maturity |
| 3 Months |
| 12 Months |
| 3 Years |
| 3 Years |
| Total |
Government Securities |
| - |
| 665,699 |
| 5,836,407 |
| 5,737,302 |
| 25,036,323 |
| 37,275,731 |
Treasury Certificates - CFT |
| - |
| - |
| - |
| - |
| 578 |
| 578 |
Securitized Credit |
| - |
| - |
| 67 |
| 1,073 |
| 1,703 |
| 2,843 |
Treasury Bills - LFT |
| - |
| 433,350 |
| - |
| - |
| - |
| 433,350 |
National Treasury Bills - LTN |
| - |
| - |
| 5,198,527 |
| 4,817,519 |
| 12,096,631 |
| 22,112,677 |
National Treasury Notes - NTN A |
| - |
| - |
| 16,131 |
| - |
| 2,914,121 |
| 2,930,252 |
National Treasury Notes - NTN B |
| - |
| 37,565 |
| 573,426 |
| - |
| 4,166,974 |
| 4,777,965 |
National Treasury Notes - NTN C(2) |
| - |
| 14,696 |
| - |
| - |
| 1,241,016 |
| 1,255,712 |
National Treasury Notes - NTN F(2) (6) |
| - |
| 152,919 |
| - |
| 779,609 |
| 2,124,112 |
| 3,056,640 |
Brazilian Foreign Debt Bonds (7) |
| - |
| 23,708 |
| 28,613 |
| - |
| 2,251,110 |
| 2,303,431 |
Debentures(3) |
| - |
| 3,461 |
| 19,643 |
| 139,101 |
| 240,078 |
| 402,283 |
Private Securities |
| 2,367,989 |
| 566,494 |
| 2,531,287 |
| 23,376,120 |
| 28,953,451 |
| 57,795,341 |
Shares |
| 318,655 |
| - |
| - |
| - |
| 400,061 |
| 718,716 |
Receivables Investment Fund - FIDC(1) |
| 1,047,041 |
| - |
| - |
| - |
| - |
| 1,047,041 |
Investment Fund Shares in Participation - FIP |
| 527,124 |
| - |
| - |
| - |
| - |
| 527,124 |
Investment Fund Shares |
| 463,564 |
| - |
| - |
| - |
| - |
| 463,564 |
Real Estate Fund Shares |
| 11,605 |
| - |
| - |
| - |
| - |
| 11,605 |
Debentures (4) |
| - |
| 193,345 |
| 1,089,871 |
| 21,905,723 |
| 27,495,404 |
| 50,684,343 |
Eurobonds |
| - |
| 72 |
| - |
| - |
| - |
| 72 |
Promissory Notes - NP(5) |
| - |
| 295,677 |
| 350,733 |
| 1,349,686 |
| 452,140 |
| 2,448,236 |
Real Estate Credit Notes - CCI |
| - |
| - |
| 4,262 |
| 8,185 |
| 4,696 |
| 17,143 |
Financial Bills - LF |
| - |
| 27,525 |
| 953,147 |
| 112,526 |
| - |
| 1,093,198 |
Certificates of Real Estate Receivables - CRI |
| - |
| 49,875 |
| 133,274 |
| - |
| 601,150 |
| 784,299 |
Total |
| 2,367,989 |
| 1,232,193 |
| 8,367,694 |
| 29,113,422 |
| 53,989,774 |
| 95,071,072 |
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated |
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
Available-for-Sale Securities |
| Without |
| Up to |
| From 3 to |
| From 1 to |
| Over |
|
|
by Maturity |
| Maturity |
| 3 Months |
| 12 Months |
| 3 Years |
| 3 Years |
| Total |
Government Securities |
| - |
| 740,976 |
| 5,836,407 |
| 6,780,049 |
| 25,252,377 |
| 38,609,809 |
Treasury Certificates - CFT |
| - |
| - |
| - |
| - |
| 578 |
| 578 |
Securitized Credit |
| - |
| - |
| 67 |
| 1,073 |
| 1,703 |
| 2,843 |
Treasury Bills - LFT |
| - |
| 457,574 |
| - |
| - |
| - |
| 457,574 |
National Treasury Bills - LTN |
| - |
| - |
| 5,198,527 |
| 5,064,633 |
| 12,096,631 |
| 22,359,791 |
National Treasury Notes - NTN A |
| - |
| - |
| 16,131 |
| - |
| 2,914,121 |
| 2,930,252 |
National Treasury Notes - NTN B |
| - |
| 37,565 |
| 573,426 |
| - |
| 4,166,974 |
| 4,777,965 |
National Treasury Notes - NTN C(2) |
| - |
| 14,696 |
| - |
| - |
| 1,241,016 |
| 1,255,712 |
National Treasury Notes - NTN F(2) (6) |
| - |
| 203,972 |
| - |
| 1,575,242 |
| 2,340,166 |
| 4,119,380 |
Brazilian Foreign Debt Bonds (7) |
| - |
| 23,708 |
| 28,613 |
| - |
| 2,251,110 |
| 2,303,431 |
Debentures(3) |
| - |
| 3,461 |
| 19,643 |
| 139,101 |
| 240,078 |
| 402,283 |
Private Securities |
| 3,314,262 |
| 566,494 |
| 2,657,686 |
| 2,830,973 |
| 7,143,800 |
| 16,513,215 |
Shares |
| 484,316 |
| - |
| - |
| - |
| 400,061 |
| 884,377 |
Receivables Investment Fund - FIDC(1) |
| 1,199,146 |
| - |
| - |
| - |
| - |
| 1,199,146 |
Investment Fund Shares in Participation - FIP |
| 1,432,984 |
| - |
| - |
| - |
| - |
| 1,432,984 |
Investment Fund Shares |
| 121,859 |
| - |
| - |
| - |
| - |
| 121,859 |
Real Estate Fund Shares |
| 75,957 |
| - |
| - |
| - |
| - |
| 75,957 |
Debentures(4) |
| - |
| 193,345 |
| 1,094,324 |
| 1,306,132 |
| 5,685,753 |
| 8,279,554 |
Eurobonds |
| - |
| 72 |
| - |
| - |
| - |
| 72 |
Promissory Notes - NP(5) |
| - |
| 295,677 |
| 350,733 |
| 1,349,686 |
| 452,140 |
| 2,448,236 |
Real Estate Credit Notes - CCI |
| - |
| - |
| 4,262 |
| 8,185 |
| 4,696 |
| 17,143 |
Financial Bills - LF |
| - |
| 27,525 |
| 1,075,093 |
| 166,970 |
| - |
| 1,269,588 |
Certificates of Real Estate Receivables - CRI |
| - |
| 49,875 |
| 133,274 |
| - |
| 601,150 |
| 784,299 |
Total |
| 3,314,262 |
| 1,307,470 |
| 8,494,093 |
| 9,611,022 |
| 32,396,177 |
| 55,123,024 |
(1) Receivables Investment Fund (FIDC) shares are calculated based on the value of the receivables and other financial assets in the respective portfolios, less respective provisions that take into consideration aspects related to the debtors, their guarantors and the corresponding transaction’s characteristics, according to accounting standards and practices for evaluating credits. | ||||||||||||
(2) On the first half of 2014, R$6,028 (2013 - R$336,333) result, net of tax in the Consolidated income from the sale of (NTN-C and NTN-F part) to the market (Note 23.e). |
| |||||||||||
(3) Issued by mixed capital company. | ||||||||||||
(4) Includes R$704,044 (06/30/2013 - R$406,738) of hedge objects market risks (Note 6.b.VI.a). | ||||||||||||
(5) Includes R$204,459 (06/30/2013 - R$202,975) of hedge objects cash flow (Note 6.b.VI.b). | ||||||||||||
(6) In June 30, 2014, includes the amount of 1,435,913 of Treasury Notes NTN-F, with maturity in January 1, 2023 which are linked to the obligation assumed by Banco Santander to cover the reserves to amortize the Plan V of the Fundo Banespa de Seguridade Social (Banesprev). | ||||||||||||
(7) Includes R$603,876 of hedge objects cash flow (Note 6.b.VI.b). | ||||||||||||
36
|
|
|
|
|
|
|
|
|
IV) Held-to-Maturity Securities | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank/Consolidated |
|
|
|
|
|
|
|
| 06/30/2014 |
|
|
|
|
|
|
|
| by Maturity |
|
| Cost |
| Amortized/Carrying Amount | From 3 to |
|
| |
Held-to-Maturity Securities (1) |
| 03/31/2014 |
| 12/31/2013 |
| 12 months |
| Total |
Government Securities |
| 179 |
| 611 |
| 179 |
| 179 |
National Treasury Notes - NTN I |
| 179 |
| 611 |
| 179 |
| 179 |
Total |
| 179 |
| 611 |
| 179 |
| 179 |
(1) The market value of held-to-maturity securities is R$179 (06/30/2013 - R$611). |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In accordance with Bacen Circular Letter 3.068/2001, article 8, Banco Santander has the positive intent and ability to hold to maturity the securities classified as held-to-maturity securities. | ||||||||
|
|
|
|
|
|
|
|
|
The fair value of securities is computed based on the average quotation in a organized market and their estimated cash flows, discounted to present value using the applicable interest rate, which reflects market conditions at the balance sheet date. | ||||||||
|
|
|
|
|
|
|
|
|
The principal interest rates are obtained from futures and swap contracts traded on the BM&FBovespa. Adjustments to these curves are made whenever certain points are considered illiquid or when, for unusual reasons, they do not fairly represent market conditions. | ||||||||
|
|
|
|
|
|
|
|
|
V) Financial Income - Securities Transactions | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated |
|
| 01/01 to |
| 01/01 to |
| 01/01 to |
| 01/01 to |
|
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Income From Fixed-Income Securities |
| 6,131,189 |
| 3,552,974 |
| 4,245,354 |
| 3,181,593 |
Income From Interbank Investments |
| 3,471,423 |
| 4,191,675 |
| 2,112,158 |
| 2,834,206 |
Income From Variable-Income Securities |
| (14,821) |
| (34,882) |
| (28,652) |
| (44,228) |
Financial Income Capitalization |
| - |
| - |
| 91,981 |
| 80,676 |
Others(1) |
| 72,122 |
| 128,642 |
| 123,685 |
| 165,319 |
Total |
| 9,659,913 |
| 7,838,409 |
| 6,544,526 |
| 6,217,566 |
(1) Corresponds mainly to income from investment funds and participations. | ||||||||
|
|
|
|
|
|
|
|
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
b) Derivatives Financial Instruments | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
I) Derivatives Recorded in Memorandum and Balance Sheets | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank | ||
|
|
|
|
|
| 06/30/2014 |
|
|
|
|
| 06/30/2013 |
|
|
|
|
|
| Trading |
|
|
|
|
| Trading |
|
| Notional |
| Cost |
| Fair Value |
| Notional |
| Cost |
| Fair Value |
Swap |
|
|
| 1,171,538 |
| 1,694,258 |
|
|
| 260,091 |
| 1,068,397 |
Asset |
| 215,340,889 |
| 27,125,828 |
| 27,983,488 |
| 124,459,265 |
| 16,948,850 |
| 18,110,466 |
CDI (Interbank Deposit Rates) |
| 52,808,308 |
| 14,488,444 |
| 15,501,776 |
| 38,518,244 |
| 9,659,501 |
| 10,666,896 |
Fixed Interest Rate - Real(1) |
| 23,142,674 |
| 11,044,720 |
| 11,700,797 |
| 13,870,795 |
| 7,254,798 |
| 7,405,944 |
Indexed to Price and Interest Rates | 21,117,002 |
| 1,569,554 |
| 757,882 |
| 15,147,346 |
| - |
| - | |
Foreign Currency |
| 118,227,582 |
| - |
| - |
| 56,847,397 |
| - |
| - |
Others |
| 45,323 |
| 23,110 |
| 23,033 |
| 75,483 |
| 34,551 |
| 37,626 |
Liabilities |
| 214,169,351 |
| (25,954,290) |
| (26,289,230) |
| 124,199,174 |
| (16,688,759) |
| (17,042,069) |
CDI (Interbank Deposit Rates) |
| 38,319,864 |
| - |
| - |
| 28,858,743 |
| - |
| - |
Fixed Interest Rate - Real |
| 12,097,954 |
| - |
| - |
| 6,615,997 |
| - |
| - |
Indexed to Price and Interest Rates | 19,547,448 |
| - |
| - |
| 18,684,800 |
| (3,537,454) |
| (4,044,037) | |
Foreign Currency (1) |
| 144,181,872 |
| (25,954,290) |
| (26,289,230) |
| 69,998,702 |
| (13,151,305) |
| (12,998,032) |
Others |
| 22,213 |
| - |
| - |
| 40,932 |
| - |
| - |
Options |
| 278,306,105 |
| (8,077) |
| 21,565 |
| 214,291,892 |
| (138,766) |
| (178,941) |
Purchased Position |
| 142,286,573 |
| 435,830 |
| 403,298 |
| 93,915,007 |
| 267,158 |
| 395,605 |
Call Option - US Dollar |
| 3,100,314 |
| 217,052 |
| 187,046 |
| 2,311,026 |
| 87,437 |
| 163,189 |
Put Option - US Dollar |
| 1,634,196 |
| 34,973 |
| 48,583 |
| 1,236,984 |
| 31,089 |
| 43,181 |
Call Option - Other |
| 68,016,882 |
| 127,298 |
| 74,927 |
| 39,788,282 |
| 88,413 |
| 142,730 |
Interbank Market |
| 67,319,919 |
| 96,931 |
| 46,761 |
| 38,940,931 |
| 51,878 |
| 136,866 |
Others(2) |
| 696,963 |
| 30,367 |
| 28,166 |
| 847,351 |
| 36,535 |
| 5,864 |
Put Option - Other |
| 69,535,181 |
| 56,507 |
| 92,742 |
| 50,578,715 |
| 60,219 |
| 46,505 |
Interbank Market |
| 65,808,416 |
| 36,339 |
| 52,648 |
| 50,270,939 |
| 34,936 |
| 10,694 |
Others(2) |
| 3,726,765 |
| 20,168 |
| 40,094 |
| 307,776 |
| 25,283 |
| 35,811 |
Sold Position |
| 136,019,532 |
| (443,907) |
| (381,733) |
| 120,376,885 |
| (405,924) |
| (574,546) |
Call Option - US Dollar |
| 3,960,980 |
| (256,493) |
| (206,726) |
| 2,363,976 |
| (154,386) |
| (233,837) |
Put Option - US Dollar |
| 395,262 |
| (13,449) |
| (14,822) |
| 455,675 |
| (15,541) |
| (18,564) |
Call Option - Other |
| 55,569,478 |
| (109,199) |
| (88,642) |
| 57,450,133 |
| (145,875) |
| (223,673) |
Interbank Market |
| 55,084,161 |
| (71,857) |
| (38,298) |
| 55,565,671 |
| (70,805) |
| (212,601) |
Others(2) |
| 485,317 |
| (37,342) |
| (50,344) |
| 1,884,462 |
| (75,070) |
| (11,072) |
Put Option - Other |
| 76,093,812 |
| (64,766) |
| (71,543) |
| 60,107,101 |
| (90,122) |
| (98,472) |
Interbank Market |
| 72,646,899 |
| (26,855) |
| (32,403) |
| 59,072,891 |
| (35,816) |
| (5,418) |
Others(2) |
| 3,446,913 |
| (37,911) |
| (39,140) |
| 1,034,210 |
| (54,306) |
| (93,054) |
Futures Contracts |
| 231,347,750 |
| - |
| - |
| 65,982,998 |
| - |
| - |
Purchased Position |
| 114,978,094 |
| - |
| - |
| 27,814,398 |
| - |
| - |
Exchange Coupon (DDI) |
| 6,846,664 |
| - |
| - |
| 2,935,115 |
| - |
| - |
Interest Rates (DI1 and DIA) |
| 106,311,635 |
| - |
| - |
| 21,036,750 |
| - |
| - |
Foreign Currency |
| 1,753,021 |
| - |
| - |
| 3,175,025 |
| - |
| - |
Indexes(3) |
| 48,545 |
| - |
| - |
| 372,497 |
| - |
| - |
Treasury Bonds/Notes |
| 12,406 |
| - |
| - |
| 295,011 |
| - |
| - |
Others |
| 5,823 |
| - |
| - |
| - |
| - |
| - |
Sold Position |
| 116,369,656 |
| - |
| - |
| 38,168,600 |
| - |
| - |
Exchange Coupon (DDI) |
| 36,294,011 |
| - |
| - |
| 11,762,600 |
| - |
| - |
Interest Rates (DI1 and DIA) |
| 9,423,724 |
| - |
| - |
| 17,305,646 |
| - |
| - |
Foreign Currency |
| 35,152,642 |
| - |
| - |
| 8,425,945 |
| - |
| - |
Indexes(3) |
| 268 |
| - |
| - |
| 58,188 |
| - |
| - |
Treasury Bonds/Notes |
| 27,569 |
| - |
| - |
| 568,432 |
| - |
| - |
Average rate of Repo Operations (OC1) | 35,471,442 |
| - |
| - |
| - |
| - |
| - | |
Others |
| - |
| - |
| - |
| 47,789 |
| - |
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
38
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
|
|
|
| 06/30/2014 |
|
|
|
|
| 06/30/2013 |
|
|
|
|
|
| Trading |
|
|
|
|
| Trading |
|
| Notional |
| Cost |
| Fair Value |
| Notional |
| Cost |
| Fair Value |
Forward Contracts and Others |
| 23,407,034 |
| (70,421) |
| 84,023 |
| 30,865,463 |
| 183,464 |
| 308,548 |
Purchased Commitment |
| 11,162,611 |
| (437,986) |
| (520,752) |
| 14,692,994 |
| 22,599 |
| (62,415) |
Currencies |
| 10,253,671 |
| (437,986) |
| (520,752) |
| 14,196,370 |
| 22,599 |
| (62,415) |
Others |
| 908,940 |
| - |
| - |
| 496,624 |
| - |
| - |
Sell Commitment |
| 12,244,423 |
| 367,565 |
| 604,775 |
| 16,172,469 |
| 160,865 |
| 370,963 |
Currencies |
| 11,724,713 |
| 367,565 |
| 604,775 |
| 15,631,971 |
| 138,883 |
| 349,559 |
Others |
| 519,710 |
| - |
| - |
| 540,498 |
| 21,982 |
| 21,404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated |
|
|
|
|
|
| 06/30/2014 |
|
|
|
|
| 06/30/2013 |
|
|
|
|
|
| Trading |
|
|
|
|
| Trading |
|
| Notional |
| Cost |
| Fair Value |
| Notional |
| Cost |
| Fair Value |
Swap |
|
|
| 1,102,664 |
| 1,661,928 |
|
|
| 183,001 |
| 1,025,601 |
Asset |
| 220,848,011 |
| 27,694,897 |
| 28,616,299 |
| 127,600,649 |
| 17,664,000 |
| 18,859,910 |
CDI (Interbank Deposit Rates) |
| 57,996,196 |
| 20,398,370 |
| 21,534,725 |
| 41,952,053 |
| 13,663,523 |
| 14,705,836 |
Fixed Interest Rate - Real(1) |
| 22,861,560 |
| 5,724,677 |
| 6,322,252 |
| 14,049,748 |
| 3,991,022 |
| 4,141,544 |
Indexed to Price and Interest Rates | 21,117,002 |
| 1,569,554 |
| 757,882 |
| 15,147,346 |
| - |
| - | |
Foreign Currency |
| 118,848,744 |
| - |
| - |
| 56,400,160 |
| - |
| - |
Others |
| 24,509 |
| 2,296 |
| 1,440 |
| 51,342 |
| 9,455 |
| 12,530 |
Liabilities |
| 219,745,347 |
| (26,592,233) |
| (26,954,371) |
| 127,417,648 |
| (17,480,999) |
| (17,834,309) |
CDI (Interbank Deposit Rates) |
| 37,597,826 |
| - |
| - |
| 28,288,530 |
| - |
| - |
Fixed Interest Rate - Real |
| 17,136,883 |
| - |
| - |
| 10,058,726 |
| - |
| - |
Indexed to Price and Interest Rates | 19,547,448 |
| - |
| - |
| 18,684,800 |
| (3,537,454) |
| (4,044,037) | |
Foreign Currency(1) |
| 145,440,977 |
| (26,592,233) |
| (26,954,371) |
| 70,343,705 |
| (13,943,545) |
| (13,790,272) |
Others |
| 22,213 |
| - |
| - |
| 41,887 |
| - |
| - |
Options |
| 280,279,433 |
| 8,590 |
| 59,498 |
| 216,438,368 |
| (149,022) |
| (174,985) |
Purchased Position |
| 143,461,886 |
| 456,277 |
| 435,467 |
| 95,195,869 |
| 305,000 |
| 444,823 |
Call Option - US Dollar |
| 3,100,314 |
| 217,052 |
| 187,046 |
| 2,311,026 |
| 87,437 |
| 163,189 |
Put Option - US Dollar |
| 1,634,196 |
| 34,973 |
| 48,583 |
| 1,236,984 |
| 31,089 |
| 43,181 |
Call Option - Other |
| 68,717,749 |
| 145,409 |
| 104,621 |
| 40,732,165 |
| 106,228 |
| 162,392 |
Interbank Market |
| 67,319,919 |
| 96,931 |
| 46,761 |
| 38,940,931 |
| 51,878 |
| 136,866 |
Others(2) |
| 1,397,830 |
| 48,478 |
| 57,860 |
| 1,791,234 |
| 54,350 |
| 25,526 |
Put Option - Other |
| 70,009,627 |
| 58,843 |
| 95,217 |
| 50,915,694 |
| 80,246 |
| 76,061 |
Interbank Market |
| 65,808,416 |
| 36,339 |
| 52,648 |
| 50,270,939 |
| 34,936 |
| 10,694 |
Others(2) |
| 4,201,211 |
| 22,504 |
| 42,569 |
| 644,755 |
| 45,310 |
| 65,367 |
Sold Position |
| 136,817,547 |
| (447,687) |
| (375,969) |
| 121,242,499 |
| (454,022) |
| (619,808) |
Call Option - US Dollar |
| 3,960,980 |
| (256,493) |
| (206,726) |
| 2,363,976 |
| (154,386) |
| (233,837) |
Put Option - US Dollar |
| 395,262 |
| (13,449) |
| (14,822) |
| 455,675 |
| (15,541) |
| (18,564) |
Call Option - Other |
| 55,897,980 |
| (113,604) |
| (90,960) |
| 57,703,925 |
| (146,700) |
| (222,738) |
Interbank Market |
| 55,084,161 |
| (71,857) |
| (38,298) |
| 55,565,671 |
| (70,805) |
| (212,601) |
Others(2) |
| 813,819 |
| (41,747) |
| (52,662) |
| 2,138,254 |
| (75,895) |
| (10,137) |
Put Option - Other |
| 76,563,325 |
| (64,141) |
| (63,461) |
| 60,718,923 |
| (137,395) |
| (144,669) |
Interbank Market |
| 72,646,899 |
| (26,855) |
| (32,403) |
| 59,072,891 |
| (35,816) |
| (5,418) |
Others(2) |
| 3,916,426 |
| (37,286) |
| (31,058) |
| 1,646,032 |
| (101,579) |
| (139,251) |
Futures Contracts |
| 232,075,100 |
| - |
| - |
| 66,263,978 |
| - |
| - |
Purchased Position |
| 115,101,939 |
| - |
| - |
| 27,955,210 |
| - |
| - |
Exchange Coupon (DDI) |
| 6,846,664 |
| - |
| - |
| 2,935,115 |
| - |
| - |
Interest Rates (DI1 and DIA) |
| 106,348,231 |
| - |
| - |
| 21,036,750 |
| - |
| - |
Foreign Currency |
| 1,753,021 |
| - |
| - |
| 3,227,182 |
| - |
| - |
Indexes(3) |
| 135,794 |
| - |
| - |
| 461,152 |
| - |
| - |
Treasury Bonds/Notes |
| 12,406 |
| - |
| - |
| 295,011 |
| - |
| - |
Others |
| 5,823 |
| - |
| - |
| - |
| - |
| - |
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated |
|
|
|
|
|
| 06/30/2014 |
|
|
|
|
| 06/30/2013 |
|
|
|
|
|
| Trading |
|
|
|
|
| Trading |
|
| Notional |
| Cost |
| Fair Value |
| Notional |
| Cost |
| Fair Value |
Sold Position |
| 116,973,161 |
| - |
| - |
| 38,308,768 |
| - |
| - |
Exchange Coupon (DDI) |
| 36,294,011 |
| - |
| - |
| 11,762,600 |
| - |
| - |
Interest Rates (DI1 and DIA) |
| 9,724,696 |
| - |
| - |
| 17,345,145 |
| - |
| - |
Foreign Currency |
| 35,152,642 |
| - |
| - |
| 8,425,945 |
| - |
| - |
Indexes(3) |
| 302,801 |
| - |
| - |
| 158,857 |
| - |
| - |
Treasury Bonds/Notes |
| 27,569 |
| - |
| - |
| 568,432 |
| - |
| - |
Average rate of Repo Operations (OC1) | 35,471,442 |
| - |
| - |
| - |
| - |
| - | |
Others |
| - |
| - |
| - |
| 47,789 |
| - |
| - |
Forward Contracts and Others |
| 23,414,612 |
| (70,689) |
| 83,755 |
| 30,865,463 |
| 183,464 |
| 308,548 |
Purchased Commitment |
| 11,168,023 |
| (437,986) |
| (520,752) |
| 14,692,994 |
| 22,599 |
| (62,415) |
Currencies |
| 10,259,083 |
| (437,986) |
| (520,752) |
| 14,196,370 |
| 22,599 |
| (62,415) |
Others |
| 908,940 |
| - |
| - |
| 496,624 |
| - |
| - |
Sell Commitment |
| 12,246,589 |
| 367,297 |
| 604,507 |
| 16,172,469 |
| 160,865 |
| 370,963 |
Currencies |
| 11,726,879 |
| 367,297 |
| 604,507 |
| 15,631,971 |
| 138,883 |
| 349,559 |
Others |
| 519,710 |
| - |
| - |
| 540,498 |
| 21,982 |
| 21,404 |
(1) In June 30, 2013, includes credit derivatives. |
|
|
|
|
|
|
|
| ||||
(2) Includes share options, indexes and commodities. |
|
|
|
|
|
| ||||||
(3) Includes Bovespa and S&P indexes. |
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
II) Derivatives Financial Instruments by Counterparty | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
|
|
|
|
|
|
|
|
|
| Notional |
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
|
|
|
|
|
| Related |
| Financial |
|
|
|
|
|
|
|
| Customers | Parties |
| Institutions(1) | Total |
| Total | ||
Swap |
|
|
| 33,209,310 |
| 110,369,216 |
| 71,762,363 |
| 215,340,889 |
| 124,459,265 |
Options |
|
|
| 2,638,276 |
| 821,427 |
| 274,846,402 |
| 278,306,105 |
| 214,291,892 |
Futures Contracts |
|
|
| - |
| - |
| 231,347,750 |
| 231,347,750 |
| 65,982,998 |
Forward Contracts and Others |
|
|
| 12,734,680 |
| 7,786,724 |
| 2,885,630 |
| 23,407,034 |
| 30,865,463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated |
|
|
|
|
|
|
|
|
|
|
|
| Notional |
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
|
|
|
|
|
| Related |
| Financial |
|
|
|
|
|
|
|
| Customers | Parties |
| Institutions(1) | Total |
| Total | ||
Swap |
|
|
| 33,209,310 |
| 110,644,382 |
| 76,994,319 |
| 220,848,011 |
| 127,600,649 |
Options |
|
|
| 2,638,276 |
| 463,382 |
| 277,177,775 |
| 280,279,433 |
| 216,438,368 |
Futures Contracts |
|
|
| - |
| - |
| 232,075,100 |
| 232,075,100 |
| 66,263,978 |
Forward Contracts and Others |
|
|
| 12,736,846 |
| 7,792,136 |
| 2,885,630 |
| 23,414,612 |
| 30,865,463 |
(1) Includes trades with the BM&FBovespa and other securities and commodities exchanges. |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
III) Derivatives Financial Instruments by Maturity | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
|
|
|
|
|
|
|
|
|
| Notional |
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
|
|
|
| Up to |
| From 3 to |
| Over |
|
|
|
|
|
|
|
| 3 Months | 12 Months |
| 12 Months |
| Total |
| Total | |
Swap |
|
|
| 45,262,921 |
| 89,787,614 |
| 80,290,354 |
| 215,340,889 |
| 124,459,265 |
Options |
|
|
| 101,130,175 |
| 173,731,733 |
| 3,444,197 |
| 278,306,105 |
| 214,291,892 |
Futures Contracts |
|
|
| 42,783,336 |
| 145,239,434 |
| 43,324,980 |
| 231,347,750 |
| 65,982,998 |
Forward Contracts and Others |
|
|
| 10,195,689 |
| 6,409,415 |
| 6,801,930 |
| 23,407,034 |
| 30,865,463 |
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Notional | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 | ||||||||||||||||
|
|
|
|
|
| Up to |
| From 3 to |
| Over |
|
|
|
| ||||||||||||||||
|
|
|
|
|
| 3 Months | 12 Months |
| 12 Months |
| Total |
| Total | |||||||||||||||||
Swap |
|
|
|
|
| 46,216,173 |
| 92,234,855 |
| 82,396,983 |
| 220,848,011 |
| 127,600,649 | ||||||||||||||||
Options |
|
|
|
|
| 101,800,922 |
| 175,096,467 |
| 3,382,044 |
| 280,279,433 |
| 216,438,368 | ||||||||||||||||
Futures Contracts |
|
|
| 43,236,448 |
| 145,452,376 |
| 43,386,276 |
| 232,075,100 |
| 66,263,978 | ||||||||||||||||||
Forward Contracts and Others |
|
|
| 10,195,689 |
| 6,411,219 |
| 6,807,704 |
| 23,414,612 |
| 30,865,463 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
IV) Derivatives Financial Instruments by Trade Market |
|
|
|
|
|
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Notional | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 | ||||||||||||||||
|
|
|
|
|
| Exchange(1) | Cetip(2) |
| Over the Counter | Total |
| Total | ||||||||||||||||||
Swap |
|
|
|
|
| 62,836,805 |
| 51,068,329 |
| 101,435,755 |
| 215,340,889 |
| 124,459,265 | ||||||||||||||||
Options |
|
|
|
|
| 273,651,607 |
| 4,254,498 |
| 400,000 |
| 278,306,105 |
| 214,291,892 | ||||||||||||||||
Futures Contracts |
|
|
| 231,347,750 |
| - |
| - |
| 231,347,750 |
| 65,982,998 | ||||||||||||||||||
Forward Contracts and Others |
|
|
| - |
| 14,301,714 |
| 9,105,320 |
| 23,407,034 |
| 30,865,463 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Notional | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 | ||||||||||||||||
|
|
|
|
|
| Exchange(1) | Cetip(2) |
| Over the Counter | Total |
| Total | ||||||||||||||||||
Swap |
|
|
|
|
| 62,836,805 |
| 55,177,759 |
| 102,833,447 |
| 220,848,011 |
| 127,600,649 | ||||||||||||||||
Options |
|
|
|
|
| 275,624,935 |
| 4,254,498 |
| 400,000 |
| 280,279,433 |
| 216,438,368 | ||||||||||||||||
Futures Contracts |
|
|
| 232,075,100 |
| - |
| - |
| 232,075,100 |
| 66,263,978 | ||||||||||||||||||
Forward Contracts and Others |
|
|
| - |
| 14,309,292 |
| 9,105,320 |
| 23,414,612 |
| 30,865,463 | ||||||||||||||||||
(1) Includes amount traded with the BM&FBovespa and other securities and commodities exchanges. | ||||||||||||||||||||||||||||||
(2) Includes amount traded on other clearinghouses. |
|
|
|
|
|
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
V) Credit Derivatives |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Transactions involving credit derivatives are performed with the purpose of reduce or eliminate its exposure to specific risks arising from the purchase or sale of assets associated with the loan portfolio management. | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
In June 30, 2013 in the Bank and Consolidated, the volume of credit derivatives with total return rate - credit risk received corresponds to R$442,954 of cost and R$489,744 of market value and amount allocated stockholders' equity used amounted to R$2,624. | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
41
VI) Derivatives Used as Hedge Instruments | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives used as hedge by index are as follows: | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
a) Market Risk Hedge | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
|
|
|
| 06/30/2014 |
|
|
|
|
| 06/30/2013 |
|
|
|
| Adjustment |
|
|
|
| Adjustment |
|
| |
|
| Cost |
| to Fair Value | Fair Value |
| Cost |
| to Fair Value | Fair Value | ||
Hedge Instruments |
|
|
|
|
|
|
|
|
|
|
|
|
Swap Contracts |
| 32,567 |
| (90,722) |
| (58,155) |
| 12,441 |
| (103,313) |
| (90,872) |
Asset |
| 2,134,682 |
| (1,318,016) |
| 816,666 |
| 1,738,201 |
| (417,138) |
| 1,321,063 |
CDI (Interbank Deposit Rates)(1) (2) (6) | 1,407,014 |
| (703,514) |
| 703,500 |
| 951,236 |
| (457,523) |
| 493,713 | |
Fixed Interest Rate - Real(2) |
| 111,202 |
| (632,234) |
| (521,032) |
| - |
| - |
| - |
Indexed to Foreign Currency - Libor - US Dollar(2) (3) (4) (6) | 306,076 |
| 13,866 |
| 319,942 |
| 493,934 |
| 35,044 |
| 528,978 | |
Indexed to Foreign Currency - Fixed Interest - Swiss Franc(5) | 310,390 |
| 3,866 |
| 314,256 |
| 293,031 |
| 5,341 |
| 298,372 | |
Liabilities |
| (2,102,115) |
| 1,227,294 |
| (874,821) |
| (1,725,760) |
| 313,825 |
| (1,411,935) |
Indexed to Foreign Currency - US Dollar (1) | (699,145) |
| (66,553) |
| (765,698) |
| (870,576) |
| (103,390) |
| (973,966) | |
Indexed to Foreign Currency - Fixed Interest(2) | (797,807) |
| 1,099,900 |
| 302,093 |
| (154,610) |
| 440,935 |
| 286,325 | |
Indexed to Foreign Currency - Fixed Interest |
|
|
|
|
|
|
|
|
|
| ||
- US Dollar(3) |
| (20,304) |
| (967) |
| (21,271) |
| (33,087) |
| (2,343) |
| (35,430) |
CDI (Interbank Deposit Rates) (4) | (36,284) |
| (1,276) |
| (37,560) |
| (160,526) |
| (8,852) |
| (169,378) | |
Indexed to Foreign Currency - Libor - US Dollar(5) | (286,402) |
| (3,909) |
| (290,311) |
| (288,109) |
| (7,362) |
| (295,471) | |
Fixed Interest Rate - Real(6) |
| (262,173) |
| 200,099 |
| (62,074) |
| (218,852) |
| (5,163) |
| (224,015) |
Hedge ObjectAsset |
| 1,727,985 |
| 111,591 |
| 1,839,576 |
| 1,540,874 |
| 104,654 |
| 1,645,528 |
Lending Operation |
| 1,072,311 |
| 63,221 |
| 1,135,532 |
| 1,175,786 |
| 63,004 |
| 1,238,790 |
Indexed to Foreign Currency - US Dollar | 612,450 |
| 63,923 |
| 676,373 |
| 752,539 |
| 92,563 |
| 845,102 | |
Indexed to Foreign Currency - Fixed Interest |
|
|
|
|
|
|
|
|
|
| ||
- US Dollar |
| 20,317 |
| 264 |
| 20,581 |
| 33,105 |
| 498 |
| 33,603 |
Indexed Indices of Prices and Interest | 181,757 |
| 10,875 |
| 192,632 |
| - |
| - |
| - | |
CDI (Interbank Deposit Rates) |
| 36,284 |
| (1,368) |
| 34,916 |
| 164,928 |
| (13,419) |
| 151,509 |
Fixed Interest Rate - Real |
| 221,503 |
| (10,473) |
| 211,030 |
| 225,214 |
| (16,638) |
| 208,576 |
Securities |
| 655,674 |
| 48,370 |
| 704,044 |
| 365,088 |
| 41,650 |
| 406,738 |
Available-for-Sale Securities - Debêntures | 655,674 |
| 48,370 |
| 704,044 |
| 365,088 |
| 41,650 |
| 406,738 | |
Liabilities |
| (312,240) |
| (2,017) |
| (314,257) |
| (294,210) |
| (4,162) |
| (298,372) |
Securities Issued Abroad |
| (312,240) |
| (2,017) |
| (314,257) |
| (294,210) |
| (4,162) |
| (298,372) |
Eurobonds |
| (312,240) |
| (2,017) |
| (314,257) |
| (294,210) |
| (4,162) |
| (298,372) |
42
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| Consolidated | ||
|
|
|
|
|
| 06/30/2014 |
|
|
|
|
| 06/30/2013 | ||
|
|
|
| Adjustment |
|
|
|
| Adjustment |
|
| |||
|
| Cost |
| to Fair Value | Fair Value |
| Cost |
| to Fair Value | Fair Value | ||||
Hedge Instruments |
|
|
|
|
|
|
|
|
|
|
|
| ||
Swap Contracts |
| 32,440 |
| (91,338) |
| (58,898) |
| 11,764 |
| (93,733) |
| (81,969) | ||
Asset |
| 2,445,824 |
| (1,273,588) |
| 1,172,236 |
| 2,091,852 |
| (314,186) |
| 1,777,666 | ||
CDI (Interbank Deposit Rates)(1) (2) (6) | 1,407,014 |
| (703,514) |
| 703,500 |
| 951,236 |
| (457,523) |
| 493,713 | |||
Fixed Interest Rate - Real(2) |
| 111,202 |
| (632,234) |
| (521,032) |
| - |
| - |
| - | ||
Indexed to Foreign Currency - Libor - US Dollar(2) (3) (4) (6) | 306,076 |
| 13,866 |
| 319,942 |
| 493,934 |
| 35,044 |
| 528,978 | |||
Indexed to Foreign Currency - Fixed Interest - Swiss Franc(5) | 310,390 |
| 3,866 |
| 314,256 |
| 293,031 |
| 5,341 |
| 298,372 | |||
Indexed to Foreign Currency - Euro(1) | 311,142 |
| 44,428 |
| 355,570 |
| 353,651 |
| 102,952 |
| 456,603 | |||
Liabilities |
| (2,413,384) |
| 1,182,250 |
| (1,231,134) |
| (2,080,088) |
| 220,453 |
| (1,859,635) | ||
Indexed to Foreign Currency - US Dollar (1) | (1,010,414) |
| (111,597) |
| (1,122,011) |
| (1,224,904) |
| (196,762) |
| (1,421,666) | |||
Indexed to Foreign Currency - Fixed Interest(2) | (797,807) |
| 1,099,900 |
| 302,093 |
| (154,610) |
| 440,935 |
| 286,325 | |||
Indexed to Foreign Currency - Fixed Interest |
|
|
|
|
|
|
|
|
|
| ||||
- US Dollar(3) |
| (20,304) |
| (967) |
| (21,271) |
| (33,087) |
| (2,343) |
| (35,430) | ||
CDI (Interbank Deposit Rates) (4) | (36,284) |
| (1,276) |
| (37,560) |
| (160,526) |
| (8,852) |
| (169,378) | |||
Indexed to Foreign Currency - Libor - US Dollar(5) | (286,402) |
| (3,909) |
| (290,311) |
| (288,109) |
| (7,362) |
| (295,471) | |||
Fixed Interest Rate - Real(6) |
| (262,173) |
| 200,099 |
| (62,074) |
| (218,852) |
| (5,163) |
| (224,015) | ||
Hedge Object Asset |
| 2,040,884 |
| 112,277 |
| 2,153,161 |
| 1,994,067 |
| 95,620 |
| 2,089,687 | ||
Lending Operation |
| 1,385,210 |
| 63,907 |
| 1,449,117 |
| 1,628,979 |
| 53,970 |
| 1,682,949 | ||
Indexed to Foreign Currency - US Dollar | 925,349 |
| 64,609 |
| 989,958 |
| 1,205,732 |
| 83,529 |
| 1,289,261 | |||
Indexed to Foreign Currency - Fixed Interest |
|
|
|
|
|
|
|
|
|
| ||||
- US Dollar |
| 20,317 |
| 264 |
| 20,581 |
| 33,105 |
| 498 |
| 33,603 | ||
Indexed Indices of Prices and Interest | 181,757 |
| 10,875 |
| 192,632 |
| - |
| - |
| - | |||
CDI (Interbank Deposit Rates) |
| 36,284 |
| (1,368) |
| 34,916 |
| 164,928 |
| (13,419) |
| 151,509 | ||
Fixed Interest Rate - Real |
| 221,503 |
| (10,473) |
| 211,030 |
| 225,214 |
| (16,638) |
| 208,576 | ||
Securities |
| 655,674 |
| 48,370 |
| 704,044 |
| 365,088 |
| 41,650 |
| 406,738 | ||
Available-for-Sale Securities - Debentures | 655,674 |
| 48,370 |
| 704,044 |
| 365,088 |
| 41,650 |
| 406,738 | |||
Liabilities |
| (312,240) |
| (2,017) |
| (314,257) |
| (294,210) |
| (4,162) |
| (298,372) | ||
Securities Issued Abroad |
| (312,240) |
| (2,017) |
| (314,257) |
| (294,210) |
| (4,162) |
| (298,372) | ||
Eurobonds |
| (312,240) |
| (2,017) |
| (314,257) |
| (294,210) |
| (4,162) |
| (298,372) | ||
(1) Instruments whose hedge object are loan operations indexed in foreign currency - dollar with market value R$676,373 (06/30/2013 - R$845,102) in the Bank and R$989,958 (06/30/2013 - R$1,289,261) in the Consolidated and bonds and securities represented by debentures with fair value R$89,215 (06/30/2013 - R$128,933) in the Bank and Consolidated. | ||||||||||||||
(2) Instruments whose hedge objects are indexed loans in price indices and interest amounting R$192,632 and securities represented by debentures with a market value R$614,829 (06/30/2013 - R$277,805) in the Bank and Consolidated. | ||||||||||||||
(3) Instruments whose hedge object are loan operations indexed in foreign currency fixed interest - US dollar with market value R$20,581 (06/30/2013 - R$33,603) in the Bank and Consolidated. | ||||||||||||||
(4) Instruments whose hedge object are loan operations indexed in CDI with fair value R$34,916 (06/30/2013 - R$151,509) in the Bank and Consolidated. | ||||||||||||||
(5) Instruments whose hedge objects are obligations for securities abroad - eurobonds with fair value R$314,257 (06/30/2013 - R$298,372) in the Bank and Consolidated. | ||||||||||||||
(6) Instruments whose hedge objects are lending operations indexed pre fixed interest - real with a market value of R$211,030 (06/30/2013 - R$208,576) in the Bank and Consolidated. | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
The effectiveness of these operations were in accordance with the Bacen rule 3,082/2002. | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
43
b) Cash Flow Hedge | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
|
|
|
|
|
|
|
|
|
|
|
| Adjustment |
|
|
|
|
|
|
|
|
|
|
|
| Cost |
| to Fair Value | Fair Value | |
Hedge Instruments |
|
|
|
|
|
|
|
|
|
|
|
| ||
Swap Contracts |
|
|
|
|
|
|
| (128,352) |
| (93,769) |
| (222,121) | ||
Asset |
|
|
|
|
|
|
|
|
| 3,405,126 |
| 99,705 |
| 3,504,831 |
Indexed to Foreign Currency - Swiss Franc (1) |
|
|
| 928,073 |
| 28,896 |
| 956,969 | ||||||
Indexed to Foreign Currency - Chile (2) |
|
|
|
|
| 90,507 |
| 5,571 |
| 96,078 | ||||
Indexed to Foreign Currency - Iuan(3) |
|
|
|
|
| 53,253 |
| 452 |
| 53,705 | ||||
Indexed to Interest Rate - Real(4) |
|
|
|
|
| 1,278,333 |
| (39,374) |
| 1,238,959 | ||||
Indexed to Foreign Currency - Pre Dolar(5) |
|
|
|
|
| 1,054,960 |
| 104,160 |
| 1,159,120 | ||||
Liabilities |
|
|
|
|
|
|
|
|
| (3,533,478) |
| (193,474) |
| (3,726,952) |
Indexed to Foreign Currency - Pre Dolar(1) (2) (3) (4) |
| (2,469,324) |
| (81,551) |
| (2,550,875) | ||||||||
CDI (Interbank Deposit Rates)(5) |
|
|
|
|
|
| (204,459) |
| (26,978) |
| (231,437) | |||
Fixed Interest Rate - Real(5) |
|
|
|
|
|
|
| (252,514) |
| (395) |
| (252,909) | ||
Indexed to Foreign Currency - Euro (5) |
|
|
|
|
| (607,181) |
| (84,550) |
| (691,731) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
|
|
|
|
|
|
|
|
|
|
|
| Adjustment |
|
|
|
|
|
|
|
|
|
|
|
| Cost |
| to Fair Value | Fair Value | |
Hedge Instruments |
|
|
|
|
|
|
|
|
|
|
|
| ||
Swap Contracts |
|
|
|
|
|
|
| (191,827) |
| (124,968) |
| (316,795) | ||
Asset |
|
|
|
|
|
|
|
|
| 3,768,786 |
| 65,733 |
| 3,834,519 |
Indexed to Foreign Currency - Swiss Franc (1) |
|
|
| 928,073 |
| 28,896 |
| 956,969 | ||||||
Indexed to Foreign Currency - Chile (2) |
|
|
|
|
| 90,507 |
| 5,571 |
| 96,078 | ||||
Indexed to Foreign Currency - Iuan(3) |
|
|
|
|
| 53,253 |
| 452 |
| 53,705 | ||||
Indexed to Interest Rate - Real(4) |
|
|
|
|
| 1,278,333 |
| (39,374) |
| 1,238,959 | ||||
Indexed to Foreign Currency - Pre Dolar(5) (6) |
|
|
| 1,134,827 |
| 95,694 |
| 1,230,521 | ||||||
Indexed to Foreign Currency - Pre Euro(6) |
|
|
|
|
| 283,793 |
| (25,506) |
| 258,287 | ||||
Liabilities |
|
|
|
|
|
|
|
|
| (3,960,613) |
| (190,701) |
| (4,151,314) |
Indexed to Foreign Currency - Pre Dolar(1) (2) (3) (4) |
| (2,469,324) |
| (81,551) |
| (2,550,875) | ||||||||
CDI (Interbank Deposit Rates)(5) |
|
|
|
|
|
| (204,459) |
| (26,978) |
| (231,437) | |||
Indexed to Interest Rate - Real (5) |
|
|
|
|
| (252,514) |
| (395) |
| (252,909) | ||||
Indexed to Foreign Currency - Euro (5) |
|
|
|
|
| (607,181) |
| (84,550) |
| (691,731) | ||||
Indexed to Interest Rate - Dolar (6) |
|
|
|
|
| (326,613) |
| 2,072 |
| (324,541) | ||||
Indexed to Foreign Currency - real (6) |
|
|
|
|
| (100,522) |
| 701 |
| (99,821) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank/Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2013 |
|
|
|
|
|
|
|
|
|
|
|
| Adjustment |
|
|
|
|
|
|
|
|
|
|
|
| Cost |
| to Fair Value | Fair Value | |
Hedge Instruments |
|
|
|
|
|
|
|
|
|
|
|
| ||
Swap Contracts |
|
|
|
|
|
|
| (164,640) |
| (105,950) |
| (270,590) | ||
Asset |
|
|
|
|
|
|
|
|
| 2,520,534 |
| 52,998 |
| 2,573,532 |
Indexed to Foreign Currency - Swiss Franc (1) |
|
|
| 876,187 |
| 45,314 |
| 921,501 | ||||||
Indexed to Foreign Currency - Chile (2) |
|
|
|
|
| 93,773 |
| 6,387 |
| 100,160 | ||||
Indexed to Foreign Currency - Iuan(3) |
|
|
|
|
| 54,199 |
| 164 |
| 54,363 | ||||
Indexed to Interest Rate - Real(4) |
|
|
|
|
| 1,272,667 |
| (28,665) |
| 1,244,002 | ||||
Indexed to Foreign Currency - Pre Dolar(5) |
|
|
|
|
| 223,708 |
| 29,798 |
| 253,506 | ||||
Liabilities |
|
|
|
|
|
|
|
|
| (2,685,174) |
| (158,948) |
| (2,844,122) |
Indexed to Foreign Currency - Pre Dolar(1) (2) (3) (4) |
| (2,482,199) |
| (125,901) |
| (2,608,100) | ||||||||
CDI (Interbank Deposit Rates)(5) |
|
|
|
|
|
| (202,975) |
| (33,047) |
| (236,022) | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank/Consolidated |
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
|
|
|
|
|
|
|
|
|
|
|
| Notional |
| Notional |
Hedge Instruments |
|
|
|
|
|
|
|
|
|
|
|
| ||
Future Contracts |
|
|
|
|
|
|
|
|
| 11,842,708 |
| 20,561,566 | ||
Foreign Currency - Dollar(7) |
|
|
|
|
|
|
|
|
| 11,842,708 |
| 20,561,566 | ||
44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank/ |
|
|
|
|
|
|
|
|
|
| Bank |
| Consolidated | Consolidated | |
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2014 |
| 06/30/2013 |
Hedge Object - Cost |
|
|
|
|
|
|
|
|
|
|
|
| ||
Asset |
|
|
|
|
|
|
|
|
| 12,743,226 |
| 13,456,161 |
| 16,338,090 |
Lending Operations - Import and Export Credit and Financing |
| 11,681,974 |
| 11,681,974 |
| 16,135,115 | ||||||||
Lending Operations |
|
|
|
|
|
|
| 252,917 |
| 965,852 |
| - | ||
Available-for-Sale Securities |
|
|
|
|
|
|
|
|
|
|
|
| ||
Promissory Notes - NP |
|
|
|
|
|
|
| 204,459 |
| 204,459 |
| 202,975 | ||
Brazilian Foreign Debt Bonds |
|
|
|
|
|
|
| 603,876 |
| 603,876 |
| - | ||
Liabilitie |
|
|
|
|
|
|
|
|
| (2,354,905) |
| (2,354,905) |
| (2,309,542) |
Eurobonds |
|
|
|
|
|
|
|
|
| (2,354,905) |
| (2,354,905) |
| (2,309,542) |
(1) Operations maturing December 1, 2014, March 4, 2015 and April 12, 2016 (06/30/2013 - operations due December 1, 2014, March 4, 2015 and April 12, 2016), whose object of "hedging" transactions are eurobonds. | ||||||||||||||
(2) Operation due April 13, 2016 (06/30/2013 - operation due April 13, 2016), whose object of "hedge" is an operation of eurobonds. | ||||||||||||||
(3) Operation due December 24, 2014 (06/30/2013 - operation due December 24, 2014), whose object of "hedge" is an operation of eurobonds. | ||||||||||||||
(4) Operation due March 18, 2016 (06/30/2013 - operations due March 18, 2016), whose object of "hedge" is an operation of eurobonds. | ||||||||||||||
'(5) Operation due April 10, 2018 and April 10, 2018, October 22, 2014 and April 1, 2021 (06/30/2013 - operation due April 10, 2018) which hedge objects its securities operation represented by promissory notes title Brazilian External Debt Bonds and a credit operation. | ||||||||||||||
(6) Operations maturing on July 15, 2015, October 24, 2016, March 29, 2017, July 24, 2017 and April 3, 2018, whose objects "hedge"contracts are loans from lending institutions. | ||||||||||||||
(7) Operation maturing July 31, 2014 (30/06/2013 - operations maturing July 31, 2013 and April 2, 2014) and the updated value of the instruments of R$ 11,679,192 (06/30/2013 - R$16,131,216 ), whose object of "hedge" are the loans - loan agreements and credit export and import. | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In the Bank and Consolidated, the effect of marking to market the swaps and future contracts amounts a debit of R$111,573 (06/30/2013 - R$172,482), and is recorded in stockholders' equity, net of tax effects. | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The effectiveness of these operations were in accordance with the Bacen rule 3,082/2002 and no ineffective portions were found in the period to be accounted for. | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VII) Derivatives Pledged as Guarantee |
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The guarantee margin transactions traded on the BM&FBovespa derivative financial instruments themselves and others is composed of government securities. | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated |
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Financial Treasury Bill - LFT |
| - |
| 1,326,911 |
| 609,790 |
| 1,981,583 | ||||||
National Treasury Bill - LTN |
| 2,205,329 |
| 3,411,195 |
| 2,236,371 |
| 3,411,195 | ||||||
National Treasury Notes - NTN |
| 2,354,556 |
| 2,966,194 |
| 2,354,556 |
| 2,966,194 | ||||||
Total |
|
|
|
|
|
|
| 4,559,885 |
| 7,704,300 |
| 5,200,717 |
| 8,358,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VIII) Derivatives Recorded in Assets and Liabilities |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated |
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Swap Differentials Receivable(1) |
|
|
| 4,665,733 |
| 4,814,936 |
| 4,837,556 |
| 4,812,642 | ||||
Option Premiums to Exercise |
| 403,298 |
| 395,605 |
| 435,467 |
| 444,823 | ||||||
Forward Contracts and Others |
| 628,685 |
| 1,261,720 |
| 628,685 |
| 1,261,720 | ||||||
Total |
| 5,697,716 |
| 6,472,261 |
| 5,901,708 |
| 6,519,185 | ||||||
Liabilities |
|
|
|
|
|
|
|
| ||||||
Swap Differentials Payable(1) |
| 3,251,751 |
| 4,108,001 |
| 3,551,321 |
| 4,139,600 | ||||||
Option Premiums Launched |
| 381,733 |
| 574,546 |
| 375,969 |
| 619,808 | ||||||
Forward Contracts and Others |
| 544,662 |
| 953,172 |
| 544,930 |
| 953,172 | ||||||
Total |
| 4,178,146 |
| 5,635,719 |
| 4,472,220 |
| 5,712,580 | ||||||
(1) Includes swap options, credit and embedded derivatives. |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45
c) Financial Instruments - Sensitivity Analysis | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The risk management is focused on portfolios and risk factors pursuant to Bacen’s regulations and good international practices. | ||||||||||||||
The new rules of Basel III, disclosed on March 1, 2013; and in October, 2013 was the publication of new rules and revise launched in March 2013. The Implementation of the new rules follow a schedule in phase; thus allowing the application of the rules gradually. The new rules have been applied in October 2013. Among the new requirements that are already in place, there is the change in parameters for calculating the risk relating to exposures in foreign currency, gold and assets subject to exchange rate changes, as described in the Bacen 3.641/2013; meeting the requirements established in Resolution 4.193/2013 and the amendments introduced by Resolution 4.281/2013. | ||||||||||||||
Financial instruments are segregated into trading and banking portfolios, as in the management of market risk exposure, according to the best market practices and the transaction classification and capital management criteria of the Basileia New Standardized Approach of Bacen. The trading portfolio consists of all transactions with financial instruments and products, including derivatives, held for trading, and the banking portfolio consists of core business transactions arising from the different Banco Santander business lines and their possible hedges. Accordingly, based on the nature of Banco Santander’s activities, the sensitivity analysis was presented for trading and banking portfolios. | ||||||||||||||
Banco Santander performs the sensitivity analysis of the financial instruments in accordance with requirements of CVM Instruction 475/2008, considering the market information and scenarios that would adversely affect the positions of the Bank. | ||||||||||||||
The table below summarizes the stress amounts generated by Banco Santander’s corporate systems, related to the banking and trading portfolio, for each one of the portfolio scenarios as of June 30, 2014. | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading Portfolio |
|
|
|
|
|
|
|
|
|
|
|
| ||
Risk Factor |
|
|
| Description |
|
|
| Scenario 1 |
| Scenario 2 |
| Scenario 3 | ||
Interest Rate - real |
| Exposures subject to Changes in InterestFixed Rate | (28,736) |
| (797,834) |
| (1,595,669) | |||||||
Coupon Interest Rate |
| Exposures subject to Changes in CouponRate of Interes Rate | (8,585) |
| (127,675) |
| (255,350) | |||||||
Coupon - US Dollar |
| Exposures subject to Changes in CouponUS Dollar Rate | (2,111) |
| (23,687) |
| (47,373) | |||||||
Coupon - Other Currencies |
| Exposures subject to Changes in CouponForeign Currency Rate | (49) |
| (269) |
| (537) | |||||||
Foreign Currency |
| Exposures subject to Foreign Exchange | (2,820) |
| (70,507) |
| (141,014) | |||||||
Eurobond/Treasury/Global |
| Exposures subject to Changes in Interest Rate Negotiated Roles in InternationalMarket | (83) |
| (167) |
| (334) | |||||||
Inflation |
|
|
| Exposures subject to Change in CouponRates of Price Indexes | (7,407) |
| (100,468) |
| (200,936) | |||||
Shares and Indexes |
| Exposures subject to Change in Shares Price | (185) |
| (4,621) |
| (9,242) | |||||||
Others |
|
|
| Exposures not Meeting the Previous Settings | (1,310) |
| (32) |
| (63) | |||||
Total(1) |
|
|
|
|
|
|
|
|
| (51,286) |
| (1,125,260) |
| (2,250,518) |
(1) Amounts net of taxes. |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scenario 1: a shock of +10 base points on the interest curves and 1% to price changes (currency and share). | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scenario 2: a shock of +25% and -25% in all risk factors, are considered the greatest losses per risk factor. | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scenario 3:a shock of +50% and -50% in all risk factors, are considered the greatest losses per risk factor. | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking Portfolio |
|
|
|
|
|
|
|
|
|
|
|
| ||
Risk Factor |
|
|
| Description |
|
|
| Scenario 1 |
| Scenario 2 |
| Scenario 3 | ||
Interest Rate - real |
| Exposures subject to Changes in InterestFixed Rate | (31,940) |
| (817,159) |
| (1,560,921) | |||||||
TR and Long-Term Interest Rate - (TJLP) | Exposures subject to Change in ExchangeTR and TJLP | (5,883) |
| (153,189) |
| (239,710) | ||||||||
Inflation |
|
|
| Exposures subject to Change in CouponRates of Price Indexes | (1,594) |
| (22,893) |
| (42,958) | |||||
Coupon - US Dollar |
| Exposures subject to Changes in CouponUS Dollar Rate | (2,583) |
| (65,749) |
| (117,512) | |||||||
Coupon - Other Currencies |
| Exposures subject to Changes in CouponForeign Currency Rate | (548) |
| (486) |
| (17) | |||||||
Interest Rate Markets International | Exposures subject to Changes in Interest Rate Negotiated Roles in InternationalMarket | (10,875) |
| (35,291) |
| (76,193) | ||||||||
Foreign Currency |
| Exposures subject to Foreign Exchange | (143) |
| (3,583) |
| (7,167) | |||||||
Total(1) |
|
|
|
|
|
|
|
|
| (53,566) |
| (1,098,350) |
| (2,044,478) |
(1) Amounts net of taxes. |
|
|
|
|
|
|
|
|
|
|
|
| ||
46
Scenario 1: a shock of +10 base points on the interest curves and 1% to price changes(currency). | ||||||||
Scenario 2: a shock of +25% and -25% in all risk factors, are considered the greatest losses per risk factor. | ||||||||
Scenario 3:a shock of +50% and -50% in all risk factors, are considered the greatest losses per risk factor. | ||||||||
|
|
|
|
|
|
|
|
|
7. Interbank Accounts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The amount of interbank accounts are composed of restricted deposits with the Bacen to meet compulsory obligations for demand deposits, savings deposits and time deposits, and payments and receipts pending settlement, represented by checks and other documents sent to clearinghouses (assets and liabilities position). | ||||||||
|
|
|
|
|
|
|
|
|
8. Loan Portfolio and Allowance for Loan Losses | ||||||||
|
|
|
|
|
|
|
|
|
a) Loan Portfolio | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated |
|
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Lending Operations |
| 159,818,941 |
| 158,730,847 |
| 194,988,968 |
| 191,377,555 |
Loans and Discounted Receivables |
| 90,922,052 |
| 97,595,138 |
| 92,340,981 |
| 98,082,626 |
Financing |
| 35,700,093 |
| 34,267,272 |
| 69,451,191 |
| 66,426,492 |
Rural, Agricultural and Industrial Financing |
| 5,084,038 |
| 5,184,324 |
| 5,084,038 |
| 5,184,324 |
Real Estate Financing |
| 28,022,613 |
| 21,583,828 |
| 28,022,613 |
| 21,583,828 |
Securities Financing |
| 75,192 |
| 62,097 |
| 75,192 |
| 62,097 |
Lending Operations Related to Assignment |
| 14,953 |
| 38,188 |
| 14,953 |
| 38,188 |
Leasing Operations |
| 1,521 |
| 22,939 |
| 3,629,552 |
| 4,885,212 |
Advances on Foreign Exchange Contracts(1) (Note 9) | 3,806,074 |
| 2,882,460 |
| 3,806,074 |
| 2,882,460 | |
Other Receivables(2) |
| 21,890,137 |
| 17,048,889 |
| 23,938,150 |
| 18,908,085 |
Total |
| 185,516,673 |
| 178,685,135 |
| 226,362,744 |
| 218,053,312 |
Current |
| 79,372,931 |
| 71,321,478 |
| 101,679,168 |
| 91,193,602 |
Long-term |
| 106,143,742 |
| 107,363,657 |
| 124,683,576 |
| 126,859,710 |
(1) Advance on foreign exchange contracts are classified as a reduction of other obligations. | ||||||||
(2) Comprise receivables for guarantees honored other receivables - others (granted to borrowers to purchase securities, assets, notes and receivable - Note 12) and income receivable on foreign exchange contracts (Note 9). | ||||||||
|
|
|
|
|
|
|
|
|
Sale or Transfer Operations of Financial Assets | ||||||||
|
|
|
|
|
|
|
|
|
According to Resolution CMN 3.533/2008 updated with later norms, the lending operations with substantial retention of risks and benefits, started from January 1, 2012 to remain registered in the loan portfolio. For lending operations made until December 31, 2011, regardless of the retention or transfer of substantial risks and benefits, financial assets were written off from the record of the original operation and the result recorded in the transfer to the appropriate result. | ||||||||
|
|
|
|
|
|
|
|
|
(i) With Substantial Transfer of Risks and Benefits | ||||||||
|
|
|
|
|
|
|
|
|
Bank and Consolidated, during the first half of 2014, operations were carried out credit assignment without recourse in the amount of R$R$2,596 (2013 - R$11,312) and were recorded substantially in loans and discounted securities. These operations were classified as H risk level and the result recorded as revenue was R$1,350 (2013 - R$1,145), including reversion of the provision for loan and lease losses. | ||||||||
|
|
|
|
|
|
|
|
|
(ii) With Substantial Retention of Risks and Benefits | ||||||||
|
|
|
|
|
|
|
|
|
On March 2013, the Bank made the assignment of receivables with recourse relating to real estate financing in the amount of R$47,485. On June 30, 2014, the present value of the divested operations is R$14,953 (06/30/2013 - R$38,074) (Note 25.e). | ||||||||
On December 2011, the Bank made the assignment of receivables with recourse relating to real estate financing in the amount of R$688,821, which fall due until October 2041. On June 30, 2014, the present value of the divested operations is R$305,614 (06/30/2013 - R$420,775). | ||||||||
|
|
|
|
|
|
|
|
|
The assignment operation was carried out with recourse clause, provided the buyback is compulsory in the following situations: | ||||||||
|
|
|
|
|
|
|
|
|
- Contracts in default for a period exceeding 90 consecutive days; | ||||||||
|
|
|
|
|
|
|
|
|
- Contracts subject to renegotiation; | ||||||||
|
|
|
|
|
|
|
|
|
- Contracts subject to portability in accordance with CMN Resolution 3.401/2006; and | ||||||||
|
|
|
|
|
|
|
|
|
- Contracts subject to intervention. | ||||||||
|
|
|
|
|
|
|
|
|
The compulsory repurchase price will be calculated by unpaid balance of the loan due date at the time of its repurchase. | ||||||||
|
|
|
|
|
|
|
|
|
From the date of transfer cash flows from operations will be paid directly to the assignee entity. | ||||||||
47
|
|
|
|
|
|
|
|
|
b) Loan Portfolio by Maturity | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated |
|
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Overdue |
| 7,176,596 |
| 9,583,951 |
| 7,945,630 |
| 10,327,385 |
Due to: |
|
|
|
|
|
|
|
|
Up to 3 Months |
| 37,074,911 |
| 25,947,358 |
| 44,611,141 |
| 33,078,728 |
From 3 to 12 Months |
| 42,298,020 |
| 45,374,120 |
| 57,068,027 |
| 58,114,874 |
Over 12 Months |
| 98,967,146 |
| 97,779,706 |
| 116,737,946 |
| 116,532,325 |
Total |
| 185,516,673 |
| 178,685,135 |
| 226,362,744 |
| 218,053,312 |
|
|
|
|
|
|
|
|
|
c) Lease Portfolio | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated |
|
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Gross Investment in Leasing Operations |
| 1,582 |
| 24,582 |
| 4,288,296 |
| 5,775,475 |
Lease Receivables |
| 684 |
| 10,170 |
| 2,623,793 |
| 3,640,488 |
Unrealized Residual Values(1) |
| 898 |
| 14,412 |
| 1,664,503 |
| 2,134,987 |
Unearned Income on Lease |
| (555) |
| (9,294) |
| (2,562,826) |
| (3,532,277) |
Offsetting Residual Values |
| (898) |
| (14,412) |
| (1,664,503) |
| (2,134,987) |
Leased Assets |
| 113,891 |
| 334,471 |
| 10,106,659 |
| 13,522,284 |
Accumulated Depreciation |
| (113,891) |
| (331,076) |
| (5,715,239) |
| (8,024,244) |
Excess Depreciation |
| 62,318 |
| 261,615 |
| 2,895,841 |
| 4,734,411 |
Losses on Unamortized Lease |
| - |
| - |
| 186,692 |
| 177,603 |
Advances for Guaranteed Residual Value |
| (60,926) |
| (242,947) |
| (3,909,529) |
| (5,641,126) |
Other Assets |
| - |
| - |
| 4,161 |
| 8,073 |
Total of Lease Portfolio at Present Value |
| 1,521 |
| 22,939 |
| 3,629,552 |
| 4,885,212 |
(1) Guaranteed residual value of lease agreements, net of advances. |
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
Leasing unrealized financial income (lease income to appropriate related to minimum payments to receive) is R$61 (06/30/2013 - R$1.643) in the Bank and R$658,744 (06/30/2013 - R$890,263) in the Consolidated. | ||||||||
|
|
|
|
|
|
|
|
|
On June 30, 2014 and 2013, there were no individually material agreements or commitments for lease contracts. | ||||||||
|
|
|
|
|
|
|
|
|
Report per Lease Portfolio Maturity of Gross Investment | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated |
|
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Overdue |
| 493 |
| 2,923 |
| 81,007 |
| 140,683 |
Due to: |
|
|
|
|
|
|
|
|
Up to 1 Year |
| 1,055 |
| 20,055 |
| 2,013,749 |
| 2,775,109 |
From 1 to 5 Years |
| 34 |
| 1,604 |
| 2,185,709 |
| 2,853,535 |
Over 5 Years |
| - |
| - |
| 7,831 |
| 6,148 |
Total |
| 1,582 |
| 24,582 |
| 4,288,296 |
| 5,775,475 |
|
|
|
|
|
|
|
|
|
Report per Lease Portfolio Maturity at Present Value | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated |
|
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Overdue |
| 366 |
| 2,819 |
| 56,526 |
| 87,085 |
Due to: |
|
|
|
|
|
|
|
|
Up to 1 Year |
| 1,131 |
| 18,732 |
| 1,902,235 |
| 2,616,816 |
From 1 to 5 Years |
| 24 |
| 1,388 |
| 1,665,434 |
| 2,178,979 |
Over 5 Years |
| - |
| - |
| 5,357 |
| 2,332 |
Total |
| 1,521 |
| 22,939 |
| 3,629,552 |
| 4,885,212 |
|
|
|
|
|
|
|
|
|
48
d) Loan Portfolio by Business Sector | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated |
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Private Sector |
|
|
|
|
| 185,408,636 |
| 178,585,398 |
| 226,250,798 |
| 217,946,886 | ||
Industry |
|
|
|
|
|
|
| 43,796,778 |
| 34,323,170 |
| 45,453,920 |
| 34,801,115 |
Commercial |
|
|
|
|
|
|
| 20,215,915 |
| 21,794,644 |
| 23,781,843 |
| 25,478,001 |
Financial Institutions |
|
|
|
|
| 4,328 |
| 20,739 |
| 6,663 |
| 23,222 | ||
Services and Other(1) |
|
|
|
|
| 43,394,717 |
| 47,780,892 |
| 46,628,374 |
| 50,902,867 | ||
Individuals |
|
|
|
|
|
|
| 72,912,861 |
| 69,481,631 |
| 105,295,961 |
| 101,557,359 |
Credit Cards |
|
|
|
|
|
|
| 16,704,056 |
| 15,107,707 |
| 16,704,056 |
| 15,107,707 |
Mortgage Loans |
|
|
|
|
| 17,905,274 |
| 13,378,297 |
| 17,905,274 |
| 13,378,297 | ||
Payroll Loans |
|
|
|
|
|
|
| 12,285,004 |
| 14,808,132 |
| 12,285,004 |
| 14,808,132 |
Financing and Vehicles Lease |
|
|
|
|
| 3,206,171 |
| 3,002,574 |
| 33,412,341 |
| 33,121,622 | ||
Others (2) |
|
|
|
|
|
|
| 22,812,356 |
| 23,184,921 |
| 24,989,286 |
| 25,141,601 |
Agricultural |
|
|
|
|
|
|
| 5,084,037 |
| 5,184,322 |
| 5,084,037 |
| 5,184,322 |
Public Sector |
|
|
|
|
| 108,037 |
| 99,737 |
| 111,946 |
| 106,426 | ||
Federal |
|
|
|
|
|
|
| 32 |
| 22 |
| 32 |
| 22 |
State |
|
|
|
|
|
|
| 94,379 |
| 94,882 |
| 95,487 |
| 96,470 |
Municipal |
|
|
|
|
|
|
| 13,626 |
| 4,833 |
| 16,427 |
| 9,934 |
Total |
|
|
|
|
|
|
| 185,516,673 |
| 178,685,135 |
| 226,362,744 |
| 218,053,312 |
(1) Includes the activities of mortgage companies - business plan, transportation services, health, personal and others. | ||||||||||||||
(2) Includes personal loans, overdraft among others. |
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
e) Classification of Loan Portfolio and Respective Allowance for Loan Losses by Risk Level | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
|
| Minimum Allowance |
|
|
| Loan Portfolio |
|
|
| Allowance | ||||
Risk Level |
| Required (%) |
| Current |
| Past Due(1) | Total(3) |
| Required |
| Additional(2) | Total | ||
AA |
| - |
| 56,358,631 |
| - |
| 56,358,631 |
| - |
| - |
| - |
A |
| 0.5% |
| 80,484,984 |
| - |
| 80,484,984 |
| 402,425 |
| 306,225 |
| 708,650 |
B |
| 1% |
| 13,986,485 |
| 1,240,001 |
| 15,226,486 |
| 152,265 |
| 271,589 |
| 423,854 |
C |
| 3% |
| 7,828,325 |
| 2,006,184 |
| 9,834,509 |
| 295,036 |
| 226,723 |
| 521,759 |
D |
| 10% |
| 6,008,385 |
| 2,401,785 |
| 8,410,170 |
| 841,017 |
| - |
| 841,017 |
E |
| 30% |
| 1,747,025 |
| 1,500,282 |
| 3,247,307 |
| 974,192 |
| - |
| 974,192 |
F |
| 50% |
| 1,288,716 |
| 1,608,235 |
| 2,896,951 |
| 1,448,476 |
| - |
| 1,448,476 |
G |
| 70% |
| 951,046 |
| 1,127,314 |
| 2,078,360 |
| 1,454,852 |
| - |
| 1,454,852 |
H |
| 100% |
| 1,729,828 |
| 5,186,226 |
| 6,916,054 |
| 6,916,054 |
| - |
| 6,916,054 |
Total |
|
|
| 170,383,425 |
| 15,070,027 |
| 185,453,452 |
| 12,484,317 |
| 804,537 |
| 13,288,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2013 |
|
| Minimum Allowance |
|
|
| Loan Portfolio |
|
|
|
|
| Allowance | ||
Risk Level |
| Required (%) |
| Current |
| Past Due(1) | Total |
| Required |
| Additional(2) | Total | ||
AA |
| - |
| 50,624,835 |
| - |
| 50,624,835 |
| - |
| - |
| - |
A |
| 0.5% |
| 77,538,497 |
| - |
| 77,538,497 |
| 387,692 |
| 291,903 |
| 679,595 |
B |
| 1% |
| 16,359,698 |
| 1,296,689 |
| 17,656,387 |
| 176,564 |
| 319,056 |
| 495,620 |
C |
| 3% |
| 9,837,385 |
| 2,281,146 |
| 12,118,531 |
| 363,556 |
| 34,534 |
| 398,090 |
D |
| 10% |
| 3,999,471 |
| 1,849,409 |
| 5,848,880 |
| 584,888 |
| - |
| 584,888 |
E |
| 30% |
| 831,364 |
| 1,249,328 |
| 2,080,692 |
| 624,208 |
| - |
| 624,208 |
F |
| 50% |
| 1,790,837 |
| 1,618,988 |
| 3,409,825 |
| 1,704,913 |
| - |
| 1,704,913 |
G |
| 70% |
| 130,240 |
| 1,048,906 |
| 1,179,146 |
| 825,402 |
| - |
| 825,402 |
H |
| 100% |
| 1,532,164 |
| 6,696,178 |
| 8,228,342 |
| 8,228,342 |
| - |
| 8,228,342 |
Total |
|
|
| 162,644,491 |
| 16,040,644 |
| 178,685,135 |
| 12,895,565 |
| 645,493 |
| 13,541,058 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
|
| Minimum Allowance |
|
|
| Loan Portfolio |
|
|
| Allowance | ||||
Risk Level |
| Required (%) |
| Current |
| Past Due(1) | Total(3) |
| Required |
| Additional(2) | Total | ||
AA |
| - |
| 59,450,781 |
| - |
| 59,450,781 |
| - |
| - |
| - |
A |
| 0.5% |
| 110,164,247 |
| - |
| 110,164,247 |
| 550,821 |
| 311,643 |
| 862,464 |
B |
| 1% |
| 16,600,413 |
| 2,628,544 |
| 19,228,957 |
| 192,290 |
| 271,589 |
| 463,879 |
C |
| 3% |
| 8,505,421 |
| 3,471,672 |
| 11,977,093 |
| 359,313 |
| 226,723 |
| 586,036 |
D |
| 10% |
| 6,032,966 |
| 2,936,052 |
| 8,969,018 |
| 896,902 |
| - |
| 896,902 |
E |
| 30% |
| 1,763,870 |
| 1,722,407 |
| 3,486,277 |
| 1,045,883 |
| - |
| 1,045,883 |
F |
| 50% |
| 1,294,045 |
| 1,808,137 |
| 3,102,182 |
| 1,551,091 |
| - |
| 1,551,091 |
G |
| 70% |
| 959,372 |
| 1,276,791 |
| 2,236,163 |
| 1,565,314 |
| - |
| 1,565,314 |
H |
| 100% |
| 1,750,269 |
| 5,933,850 |
| 7,684,119 |
| 7,684,119 |
| - |
| 7,684,119 |
Total |
|
|
| 206,521,384 |
| 19,777,453 |
| 226,298,837 |
| 13,845,733 |
| 809,955 |
| 14,655,688 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2013 |
|
| Minimum Allowance |
|
|
| Loan Portfolio |
|
|
|
|
| Allowance | ||
Risk Level |
| Required (%) |
| Current |
| Past Due(1) | Total |
| Required |
| Additional(2) | Total | ||
AA |
| - |
| 52,455,616 |
| - |
| 52,455,616 |
| - |
| - |
| - |
A |
| 0.5% |
| 107,659,973 |
| - |
| 107,659,973 |
| 538,300 |
| 291,903 |
| 830,203 |
B |
| 1% |
| 18,494,144 |
| 2,492,119 |
| 20,986,263 |
| 209,863 |
| 319,056 |
| 528,919 |
C |
| 3% |
| 10,714,671 |
| 3,441,584 |
| 14,156,255 |
| 424,688 |
| 34,534 |
| 459,222 |
D |
| 10% |
| 4,029,211 |
| 2,301,664 |
| 6,330,875 |
| 633,088 |
| - |
| 633,088 |
E |
| 30% |
| 858,177 |
| 1,511,871 |
| 2,370,048 |
| 711,014 |
| - |
| 711,014 |
F |
| 50% |
| 1,807,323 |
| 1,826,082 |
| 3,633,405 |
| 1,816,702 |
| - |
| 1,816,702 |
G |
| 70% |
| 135,213 |
| 1,222,652 |
| 1,357,865 |
| 950,505 |
| - |
| 950,505 |
H |
| 100% |
| 1,563,270 |
| 7,539,742 |
| 9,103,012 |
| 9,103,012 |
| - |
| 9,103,012 |
Total |
|
|
| 197,717,598 |
| 20,335,714 |
| 218,053,312 |
| 14,387,172 |
| 645,493 |
| 15,032,665 |
(1) Includes current and past-due operations. |
|
|
|
|
|
|
|
| ||||||
(2) The additional allowance is recognized based on the Management’s risk assessment, the expected realization of the loan portfolio and the current regulatory requirements. | ||||||||||||||
(3) On June 30, 2014, the total loan portfolio includes the amount of R$63,221 in the Bank and R$63,907 Consolidated, related to the adjustment to fair value of loans that are hedged, registered under the article 5 Circular Letter 3,624 of Bacen of 26 December, 2013 and which are not contemplated in footnote levels of risk (Note 6.b.VI.a). | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
f) Changes in Allowance for Loan Losses | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated |
|
|
|
|
|
|
|
| 01/01 to |
| 01/01 to |
| 01/01 to |
| 01/01 to |
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Balance at Beginning |
|
|
|
|
| 13,829,240 |
| 13,299,770 |
| 14,999,205 |
| 14,588,745 | ||
Allowances Recognized |
|
|
|
|
| 5,269,981 |
| 6,536,899 |
| 6,043,778 |
| 7,366,268 | ||
Write-offs |
|
|
|
|
|
|
| (5,810,367) |
| (6,295,611) |
| (6,387,295) |
| (6,922,348) |
Balance at End(1) |
|
|
|
|
| 13,288,854 |
| 13,541,058 |
| 14,655,688 |
| 15,032,665 | ||
Current |
|
|
|
|
|
|
| 2,682,861 |
| 2,469,813 |
| 3,260,224 |
| 3,045,494 |
Long-term |
|
|
|
|
|
|
| 10,605,993 |
| 11,071,245 |
| 11,395,464 |
| 11,987,171 |
Recoveries Credits(2) |
|
|
|
|
| 1,185,961 |
| 726,087 |
| 1,246,643 |
| 792,802 | ||
(1) Includes R$340 (06/30/2013 - R$3,255) in the Bank and R$107,714 (06/30/2013 - R$179,893) in the Consolidated provision recorded for the leasing portfolio. | ||||||||||||||
(2) It is recorded as financial income in the items: lending operations and leasing operations. Includes results of assignment without recourse, related to the prior operations written off, as losses amounting to R$149,961 (2013 - R$22,030) in the Bank and R$149,961 (06/30/2013 - R$22,417) Consolidated. | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
g) Renegotiated Credits | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank/Consolidated |
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
Renegotiated Credits |
|
|
|
|
|
|
|
|
| 14,552,543 |
| 11,666,234 | ||
Allowance for Loan Losses |
|
|
|
|
|
|
|
|
| (7,113,722) |
| (5,686,032) | ||
Percentage of Coverage on Renegotiated Credits |
|
|
|
|
| 48.9% |
| 48.7% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50
h) Loan Portfolio Concentration | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated |
Loan Portfolio and Credit Guarantees(1), Securities(2) | 06/30/2014 |
|
|
| 06/30/2013 |
|
| |
and Derivatives Financial Instruments(3) | Risk |
| % |
| Risk |
| % | |
Biggest Debtor |
| 7,438,165 |
| 2.9% |
| 10,159,707 |
| 3.6% |
10 Biggest |
| 29,434,810 |
| 10.2% |
| 33,415,752 |
| 11.8% |
20 Biggest |
| 41,122,286 |
| 14.5% |
| 45,800,244 |
| 16.1% |
50 Biggest |
| 61,928,897 |
| 21.1% |
| 64,363,395 |
| 22.6% |
100 Biggest |
| 78,842,953 |
| 27.0% |
| 79,090,106 |
| 27.8% |
(1) Includes portions of loans to release the business plan. |
|
|
|
|
|
| ||
(2) Refers to debentures, promissory notes and certificates of real estate receivables - CRI. |
|
|
| |||||
(3) Refers to credit of derivatives risk. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9. Foreign Exchange Portfolio | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank/Consolidated |
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
Assets |
|
|
|
|
|
|
|
|
Rights to Foreign Exchange Sold |
|
|
|
|
| 23,679,957 |
| 22,673,404 |
Exchange Purchased Pending Settlement |
|
|
|
|
| 15,916,618 |
| 22,629,739 |
Advances in Local Currency |
|
|
|
|
| (258,714) |
| (214,486) |
Income Receivable from Advances and Importing Financing (Note 8.a) |
|
|
| 59,712 |
| 76,384 | ||
Currency and documents Term Foreign Currency |
|
|
|
|
| 549 |
| 808 |
Total |
|
|
|
|
| 39,398,122 |
| 45,165,849 |
Current |
|
|
|
|
| 39,164,788 |
| 44,929,327 |
Long-term |
|
|
|
|
| 233,334 |
| 236,522 |
Liabilities |
|
|
|
|
|
|
|
|
Exchange Sold Pending Settlement |
| 22,488,005 |
| 23,456,085 | ||||
Foreign Exchange Purchased |
| 16,407,529 |
| 21,637,650 | ||||
Advances on Foreign Exchange Contracts (Note 8.a) |
|
|
|
|
| (3,806,074) |
| (2,882,460) |
Others |
|
|
|
|
| 72 |
| 487 |
Total |
|
|
|
|
| 35,089,532 |
| 42,211,762 |
Current |
|
|
|
|
| 34,939,608 |
| 42,114,103 |
Long-term |
|
|
|
|
| 149,924 |
| 97,659 |
Memorandum Accounts |
|
|
|
|
|
|
|
|
Open Import Credits |
|
|
|
|
| 620,316 |
| 841,698 |
Confirmed Export Credits |
|
|
|
|
| 537,650 |
| 374,550 |
|
|
|
|
|
|
|
|
|
10. Trading Account | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated |
|
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Assets |
|
|
|
|
|
|
|
|
Financial Assets and Pending Settlement Transactions | 143,684 |
| 586,634 |
| 150,724 |
| 588,158 | |
Clearinghouse Transactions |
| 458 |
| - |
| 458 |
| 67,989 |
Debtors Pending Settlement |
| 10,530 |
| 9,313 |
| 116,594 |
| 340,397 |
Stock Exchanges - Guarantee Deposits |
| 364,720 |
| 46,419 |
| 364,720 |
| 46,419 |
Others (1) |
| 39,362 |
| 208,518 |
| 39,362 |
| 208,518 |
Total |
| 558,754 |
| 850,884 |
| 671,858 |
| 1,251,481 |
Current |
| 549,252 |
| 841,786 |
| 662,356 |
| 1,242,383 |
Long-term |
| 9,502 |
| 9,098 |
| 9,502 |
| 9,098 |
Liabilities |
|
|
|
|
|
|
|
|
Financial Assets and Pending Settlement Transactions | 417,244 |
| 1,162,844 |
| 417,387 |
| 1,166,701 | |
Creditors Pending Settlement |
| 23,520 |
| 229,385 |
| 178,188 |
| 526,585 |
Creditors for Loan of Shares |
| 176,652 |
| 290,212 |
| 537,986 |
| 524,569 |
Clearinghouse Transactions |
| - |
| - |
| 43,823 |
| 734 |
Records and Settlement |
| 2,286 |
| 2,014 |
| 2,399 |
| 2,867 |
Others |
| - |
| - |
| 1,566 |
| 1,668 |
Total |
| 619,702 |
| 1,684,455 |
| 1,181,349 |
| 2,223,124 |
Current |
| 551,388 |
| 1,654,979 |
| 1,113,035 |
| 2,143,204 |
Long-term |
| 68,314 |
| 29,476 |
| 68,314 |
| 79,920 |
(1) Refers to guarantee the deposits made in derivative transactions with customers in the market. | ||||||||
|
|
|
|
|
|
|
|
|
51
11. Tax Credits | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a) Nature and Origin of Recorded Tax Credits |
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
|
|
|
|
|
| 12/31/2013 |
| Recognition | Realization | 06/30/2014 | ||
Allowance for Loan Losses |
|
|
|
|
| 6,160,494 |
| 1,820,522 |
| (1,763,152) |
| 6,217,864 | ||
Reserve for Legal and Administrative Proceedings - Civil |
| 602,058 |
| 193,228 |
| (111,881) |
| 683,405 | ||||||
Reserve for Tax Risks and Legal Obligations |
|
|
| 3,437,730 |
| 364,562 |
| (13,898) |
| 3,788,394 | ||||
Reserve for Legal and Administrative Proceedings - Labor | 727,280 |
| 195,613 |
| (164,501) |
| 758,392 | |||||||
Adjustment to Fair Value of Trading Securities and Derivatives(1) | 998,804 |
| 42,868 |
| - |
| 1,041,672 | |||||||
Adjustment to Fair Value of Available-for-sale Securities and Cash Flow Hedge(1) | 541,062 |
| - |
| (163,398) |
| 377,664 | |||||||
Accrual for Pension Plan(2) |
|
|
|
|
| 959,033 |
| - |
| (25,375) |
| 933,658 | ||
Profit Sharing, Bonuses and Personnel Gratuities |
| 256,870 |
| 209,958 |
| (218,378) |
| 248,450 | ||||||
Other Temporary Provisions(3) |
|
|
|
|
| 2,366,392 |
| - |
| (242,534) |
| 2,123,858 | ||
Total Tax Credits on Temporary Differences |
|
|
| 16,049,723 |
| 2,826,751 |
| (2,703,117) |
| 16,173,357 | ||||
Tax Loss Carryforwards |
|
|
|
|
| 806,790 |
| - |
| (346,901) |
| 459,889 | ||
Social Contribution Tax - Executive Act 2.158/2001 |
| 683,581 |
| - |
| (41,649) |
| 641,932 | ||||||
Total Tax Credits |
|
|
|
|
| 17,540,094 |
| 2,826,751 |
| (3,091,667) |
| 17,275,178 | ||
Unrecorded Tax Credits |
|
|
|
|
| (158,654) |
| (66,153) |
| - |
| (224,807) | ||
Balance of Recorded Tax Credits |
|
|
|
|
| 17,381,440 |
| 2,760,598 |
| (3,091,667) |
| 17,050,371 | ||
Current |
|
|
|
|
|
|
| 4,711,337 |
|
|
|
|
| 4,305,789 |
Long-term |
|
|
|
|
|
|
| 12,670,103 |
|
|
|
|
| 12,744,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
|
|
|
|
|
| 12/31/2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted |
| Recognition | Realization | 06/30/2013 | ||
Allowance for Loan Losses |
|
|
|
|
| 4,146,471 |
| 2,499,955 |
| (1,399,054) |
| 5,247,372 | ||
Reserve for Legal and Administrative Proceedings - Civil |
| 577,850 |
| 139,557 |
| (126,511) |
| 590,896 | ||||||
Reserve for Tax Risks and Legal Obligations |
|
|
| 3,299,650 |
| 367,333 |
| (54,516) |
| 3,612,467 | ||||
Reserve for Legal and Administrative Proceedings - Labor | 995,968 |
| 55,204 |
| (304,345) |
| 746,827 | |||||||
Adjustment to Fair Value of Trading Securities and Derivatives(1) | 1,172,387 |
| - |
| (249,691) |
| 922,696 | |||||||
Adjustment to Fair Value of Available-for-sale Securities and Cash Flow Hedge(1) | 347,076 |
| 83,067 |
| - |
| 430,143 | |||||||
Accrual for Pension Plan(2) |
|
|
|
|
| 1,799,440 |
| 128,779 |
| (930,229) |
| 997,990 | ||
Profit Sharing, Bonuses and Personnel Gratuities |
| 248,854 |
| 172,655 |
| (253,002) |
| 168,507 | ||||||
Other Temporary Provisions(3) |
|
|
|
|
| 1,533,947 |
| - |
| (134,417) |
| 1,399,530 | ||
Total Tax Credits on Temporary Differences |
|
|
| 14,121,643 |
| 3,446,550 |
| (3,451,765) |
| 14,116,428 | ||||
Tax Loss Carryforwards |
|
|
|
|
| 1,465,953 |
| 410,950 |
| - |
| 1,876,903 | ||
Social Contribution Tax - Executive Act 2.158/2001 |
| 683,581 |
| - |
| - |
| 683,581 | ||||||
Total Tax Credits |
|
|
|
|
| 16,271,177 |
| 3,857,500 |
| (3,451,765) |
| 16,676,912 | ||
Unrecorded Tax Credits |
|
|
|
|
| (563,697) |
| - |
| 245,926 |
| (317,771) | ||
Balance of Recorded Tax Credits |
|
|
|
|
| 15,707,480 |
| 3,857,500 |
| (3,205,839) |
| 16,359,141 | ||
Current |
|
|
|
|
|
|
| 6,020,627 |
|
|
|
|
| 4,585,340 |
Long-term |
|
|
|
|
|
|
| 9,686,853 |
|
|
|
|
| 11,773,801 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52
|
|
|
|
|
|
|
|
|
| Consolidated | |||
|
|
|
| 12/31/2013 |
| Recognition | Realization | 06/30/2014 | |||||
Allowance for Loan Losses |
|
|
| 7,022,251 |
| 2,150,858 |
| (1,949,027) |
| 7,224,082 | |||
Reserve for Legal and Administrative Proceedings - Civil |
| 664,243 |
| 220,564 |
| (134,473) |
| 750,334 | |||||
Reserve for Tax Risks and Legal Obligations |
|
|
| 4,091,034 |
| 441,577 |
| (29,304) |
| 4,503,307 | |||
Reserve for Legal and Administrative Proceedings - Labor | 754,242 |
| 205,226 |
| (174,117) |
| 785,351 | ||||||
Amortized Goodwill |
|
|
| 7,455 |
| - |
| (4,260) |
| 3,195 | |||
Adjustment to Fair Value of Trading Securities and Derivatives(1) | 999,372 |
| 55,941 |
| (12) |
| 1,055,301 | ||||||
Adjustment to Fair Value of Available-for-sale Securities and Cash Flow Hedge(1) | 586,916 |
| 91 |
| (179,302) |
| 407,705 | ||||||
Accrual for Pension Plan(2) |
|
|
| 969,897 |
| - |
| (29,575) |
| 940,322 | |||
Profit Sharing, Bonuses and Personnel Gratuities |
| 272,217 |
| 220,121 |
| (229,791) |
| 262,547 | |||||
Other Temporary Provisions(3) |
|
|
| 2,465,909 |
| 8,949 |
| (258,970) |
| 2,215,888 | |||
Total Tax Credits on Temporary Differences |
|
|
| 17,833,536 |
| 3,303,327 |
| (2,988,831) |
| 18,148,032 | |||
Tax Loss Carryforwards |
|
|
| 1,588,106 |
| 467 |
| (481,933) |
| 1,106,640 | |||
Social Contribution Tax - Executive Act 2.158/2001 |
| 697,727 |
| - |
| (41,649) |
| 656,078 | |||||
Total Tax Credits |
|
|
| 20,119,369 |
| 3,303,794 |
| (3,512,413) |
| 19,910,750 | |||
Unrecorded Tax Credits |
|
|
| (159,760) |
| (66,153) |
| 963 |
| (224,950) | |||
Balance of Recorded Tax Credits |
|
|
| 19,959,609 |
| 3,237,641 |
| (3,511,450) |
| 19,685,800 | |||
Current |
|
|
| 5,476,303 |
|
|
|
|
| 4,964,746 | |||
Long-term |
|
|
| 14,483,306 |
|
|
|
|
| 14,721,054 | |||
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
| Change |
|
|
|
|
| Consolidated | |||
|
| 12/31/2012 |
| Scope |
|
|
|
|
|
| |||
|
| Adjusted |
| Consolidation(4) | Recognition | Realization | 06/30/2013 | ||||||
Allowance for Loan Losses |
| 4,921,857 |
| (767) |
| 2,830,859 |
| (1,501,583) |
| 6,250,366 | |||
Reserve for Legal and Administrative Proceedings - Civil | 632,290 |
| - |
| 145,191 |
| (130,202) |
| 647,279 | ||||
Reserve for Tax Risks and Legal Obligations |
| 3,801,170 |
| (45) |
| 441,276 |
| (55,566) |
| 4,186,835 | |||
Reserve for Legal and Administrative Proceedings - Labor | 1,024,009 |
| (137) |
| 57,515 |
| (308,823) |
| 772,564 | ||||
Amortized Goodwill |
| 7,455 |
| - |
| - |
| - |
| 7,455 | |||
Adjustment to Fair Value of Trading Securities and Derivatives(1) | 1,176,295 |
| - |
| 3 |
| (253,544) |
| 922,754 | ||||
Adjustment to Fair Value of Available-for-sale Securitiesand Cash Flow Hedge(1) | 347,137 |
| - |
| 176,844 |
| - |
| 523,981 | ||||
Accrual for Pension Plan(2) |
| 1,805,689 |
| - |
| 155,120 |
| (930,229) |
| 1,030,580 | |||
Profit Sharing, Bonuses and Personnel Gratuities | 269,902 |
| (61) |
| 188,043 |
| (274,982) |
| 182,902 | ||||
Other Temporary Provisions(3) |
| 1,627,343 |
| (66) |
| 10,412 |
| (138,335) |
| 1,499,354 | |||
Total Tax Credits on Temporary Differences |
| 15,613,147 |
| (1,076) |
| 4,005,263 |
| (3,593,264) |
| 16,024,070 | |||
Tax Loss Carryforwards |
| 2,805,344 |
| - |
| 437,278 |
| (508,758) |
| 2,733,864 | |||
Social Contribution Tax - Executive Act 2.158/2001 | 697,727 |
| - |
| - |
| - |
| 697,727 | ||||
Total Tax Credits |
| 19,116,218 |
| (1,076) |
| 4,442,541 |
| (4,102,022) |
| 19,455,661 | |||
Unrecorded Tax Credits |
| (566,383) |
| - |
| - |
| 246,873 |
| (319,510) | |||
Balance of Recorded Tax Credits |
| 18,549,835 |
| (1,076) |
| 4,442,541 |
| (3,855,149) |
| 19,136,151 | |||
Current |
| 7,139,554 |
|
|
|
|
|
|
| 5,480,850 | |||
Long-term |
| 11,410,281 |
|
|
|
|
|
|
| 13,655,301 | |||
(1) Includes tax credits IRPJ, CSLL, PIS and Cofins. |
|
|
|
|
|
|
|
| |||||
(2) Includes tax credits IRPJ and CSLL, adjustments on plan benefits to employees as mentioned (Note 3.l). | |||||||||||||
(3) Composed mainly by administrative provisions and judicial deposits. |
|
| |||||||||||
(4) Change in shareholding company Webmotors S.A. , as corporate restructuring (Note 14 and 36.c). | |||||||||||||
|
|
|
|
|
|
|
|
|
|
| |||
53
b) Expected Realization of Recorded Tax Credits | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
|
| Temporary Differences |
|
|
| Tax Loss |
|
|
|
|
| Total | ||
Year |
| IRPJ |
| CSLL |
| PIS/Cofins |
| Carryforwards | CSLL 18% |
| Total |
| Recorded | |
2014 |
| 1,298,315 |
| 781,937 |
| 32,126 |
| 175,294 |
| - |
| 2,287,672 |
| 2,287,672 |
2015 |
| 2,337,403 |
| 1,400,759 |
| 64,252 |
| 170,337 |
| 63,483 |
| 4,036,234 |
| 4,036,234 |
2016 |
| 3,924,118 |
| 2,345,869 |
| 36,230 |
| - |
| - |
| 6,306,217 |
| 6,306,217 |
2017 |
| 1,050,696 |
| 623,806 |
| 8,208 |
| 79,544 |
| 90,895 |
| 1,853,149 |
| 1,853,149 |
2018 |
| 241,062 |
| 146,479 |
| 8,208 |
| - |
| 213,498 |
| 609,247 |
| 609,247 |
2019 a 2021 |
| 594,268 |
| 353,404 |
| 4,104 |
| - |
| 274,056 |
| 1,225,832 |
| 1,225,832 |
2022 a 2023 |
| 326,583 |
| 216,218 |
| - |
| - |
| - |
| 542,801 |
| 542,801 |
2024 a 2026 |
| 239,506 |
| 139,806 |
| - |
| 34,714 |
| - |
| 414,026 |
| 189,219 |
Total |
| 10,011,951 |
| 6,008,278 |
| 153,128 |
| 459,889 |
| 641,932 |
| 17,275,178 |
| 17,050,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
|
| Temporary Differences |
|
|
| Tax Loss |
|
|
|
|
| Total | ||
Year |
| IRPJ |
| CSLL |
| PIS/Cofins |
| Carryforwards | CSLL 18% |
| Total |
| Recorded | |
2014 |
| 1,452,904 |
| 874,691 |
| 32,823 |
| 290,859 |
| 4,342 |
| 2,655,619 |
| 2,655,572 |
2015 |
| 2,596,982 |
| 1,562,930 |
| 65,645 |
| 319,551 |
| 73,287 |
| 4,618,395 |
| 4,618,348 |
2016 |
| 4,559,536 |
| 2,701,375 |
| 37,253 |
| 27,972 |
| - |
| 7,326,136 |
| 7,326,127 |
2017 |
| 1,172,342 |
| 700,310 |
| 8,861 |
| 159,342 |
| 90,895 |
| 2,131,750 |
| 2,131,710 |
2018 |
| 278,363 |
| 166,183 |
| 8,861 |
| 128,445 |
| 213,498 |
| 795,350 |
| 795,350 |
2019 a 2021 |
| 620,174 |
| 367,059 |
| 4,431 |
| 138,340 |
| 274,056 |
| 1,404,060 |
| 1,404,060 |
2022 a 2023 |
| 336,516 |
| 221,149 |
| - |
| 7,417 |
| - |
| 565,082 |
| 565,082 |
2024 a 2026 |
| 239,746 |
| 139,898 |
| - |
| 34,714 |
| - |
| 414,358 |
| 189,551 |
Total |
| 11,256,563 |
| 6,733,595 |
| 157,874 |
| 1,106,640 |
| 656,078 |
| 19,910,750 |
| 19,685,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to differences between accounting, tax and corporate, expected realization of tax credits should not be taken as indicative of future net income. | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
c) Present Value of Tax Credits |
|
|
|
|
|
|
|
|
|
| ||||
The total present value of tax credits is R$14,710,291 (06/30/2013 - R$14,611,562) in the Bank and R$16,992,015 (06/30/2013 - R$17,113,014) Consolidated and the present value of recorded tax credits is R$14,607,390 (06/30/2013 - R$14,469,253) in the Bank and R$16,888,984 (06/30/2013 - R$16,969,392) Consolidated, the present value was calculated taking into account the expected realization of temporary differences, tax losses carryforwards, negative CSLL bases and social contribution tax at the rate of 18% (Provisional Act 2.158/2001) and the average funding rate, projected for the corresponding periods. | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12. Other Receivables - Other |
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated |
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Notes and Credits Receivable (Note 8.a) |
|
|
|
|
|
|
|
|
|
| ||||
Credit Cards |
|
|
|
|
|
|
| 11,990,185 |
| 10,681,751 |
| 11,990,185 |
| 10,681,751 |
Receivables |
|
|
|
|
|
|
| 9,556,252 |
| 6,005,036 |
| 11,601,449 |
| 7,859,636 |
Rural Product |
|
|
|
|
| 173,570 |
| 252,054 |
| 173,570 |
| 252,054 | ||
Escrow Deposits for |
|
|
|
|
|
|
|
| ||||||
Tax Claims |
|
|
|
|
|
|
| 3,185,063 |
| 3,274,143 |
| 4,926,861 |
| 4,872,951 |
Labor Claims |
|
|
|
|
|
|
| 1,733,448 |
| 1,921,028 |
| 1,779,757 |
| 1,977,800 |
Others |
|
|
|
|
|
|
| 570,172 |
| 509,638 |
| 694,019 |
| 634,180 |
Contract Guarantees - Former Controlling Stockholders (Note 22.i) | 741,149 |
| 841,419 |
| 835,950 |
| 1,008,291 | |||||||
Recoverable Taxes |
|
|
|
|
| 1,846,278 |
| 2,717,818 |
| 2,658,739 |
| 3,572,412 | ||
Receivables - Buyer Services |
|
|
|
|
| 5,774,102 |
| 3,808,689 |
| 5,774,102 |
| 3,808,689 | ||
Reimbursable Payments |
|
|
|
|
| 424,569 |
| 311,093 |
| 167,987 |
| 140,818 | ||
Salary Advances/Others |
|
|
|
|
| 156,999 |
| 235,941 |
| 170,756 |
| 250,338 | ||
Debtors for Purchase of Assets (Note 8.a) |
|
|
| 69,635 |
| 28,622 |
| 72,451 |
| 33,218 | ||||
Receivable from Affiliates (Note 25.e) |
|
|
| 559,836 |
| 404,862 |
| 561,949 |
| 377,322 | ||||
Employee Benefit Plan (Note 34) |
|
|
|
|
| 473 |
| 12,265 |
| 473 |
| 12,265 | ||
Others |
|
|
|
|
|
|
| 1,449,988 |
| 1,074,311 |
| 2,255,479 |
| 1,502,232 |
Total |
|
|
|
|
|
|
| 38,231,719 |
| 32,078,670 |
| 43,663,727 |
| 36,983,957 |
Current |
|
|
|
|
|
|
| 26,971,565 |
| 22,715,189 |
| 29,257,166 |
| 24,517,637 |
Long-term |
|
|
|
|
|
|
| 11,260,154 |
| 9,363,481 |
| 14,406,561 |
| 12,466,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54
13. Dependence Information and Foreign Subsidiary | ||||||||
|
|
|
|
|
|
|
|
|
Banco Santander established has an independent subsidiary in Spain, Santander Brasil, Establecimiento Financieiro de Credito, S.A. (Santander Brasil EFC), in order to complement the foreign trade strategy allowing to provide financial products and services for corporate clients - large Brazilian companies and their operations abroad - offer financial products and services through an offshore entity that is not established in a jurisdiction with favorable tax treatment. | ||||||||
|
|
|
|
|
|
|
|
|
The summarized financial position of dependency and foreign subsidiary, converted at the exchange rate prevailing at balance sheet date in the financial statements include: | ||||||||
|
|
|
|
|
|
|
|
|
|
| Grand Cayman Branch | Santander Brasil EFC | |||||
|
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Assets |
| 48,816,242 |
| 59,520,135 |
| 2,598,987 |
| 2,211,222 |
Current and Long-term Assets |
| 48,816,214 |
| 59,520,096 |
| 2,597,779 |
| 2,210,010 |
Cash |
| 942,908 |
| 640,378 |
| 146,252 |
| 886 |
Interbank Investments |
| 2,507,353 |
| 6,706,475 |
| - |
| 1,496,866 |
Securities and Derivatives Financial Instruments |
| 22,382,489 |
| 27,272,061 |
| 263,547 |
| 31,448 |
Lending Operations(1) |
| 19,922,226 |
| 21,672,262 |
| 2,174,607 |
| 678,466 |
Foreign Exchange Portfolio |
| 1,543,814 |
| 2,299,189 |
| - |
| - |
Others |
| 1,517,424 |
| 929,731 |
| 13,373 |
| 2,344 |
Permanent Assets |
| 28 |
| 39 |
| 1,208 |
| 1,212 |
Liabilities |
| 48,816,242 |
| 59,520,135 |
| 2,598,987 |
| 2,211,222 |
Current and Long-term Liabilities |
| 32,912,017 |
| 37,239,465 |
| 275,109 |
| 47,395 |
Deposits and Money Market Funding |
| 3,368,915 |
| 923,691 |
| - |
| - |
Funds from Acceptance and Issuance of Securities |
| 12,523,338 |
| 18,362,686 |
| - |
| - |
Borrowings(2) |
| 13,697,958 |
| 12,354,425 |
| - |
| 22,600 |
Foreign Exchange Portfolio |
| 1,542,057 |
| 2,086,321 |
| - |
| - |
Others |
| 1,779,749 |
| 3,512,342 |
| 275,109 |
| 24,795 |
Deferred Income |
| 1,128 |
| 3,630 |
| 11,847 |
| 1 |
Stockholders' Equity(3) |
| 15,903,097 |
| 22,277,040 |
| 2,312,031 |
| 2,163,826 |
(1) Refers mainly to export financing operations. |
|
|
|
|
|
|
|
|
(2) Borrowings abroad regarding financing lines to exports and imports and other lines of credit. |
|
| ||||||
(3) In the first quarter of 2014, the Grand Cayman Branch paid the amount of R$584.250 through dividends to Banco Santander. | ||||||||
|
|
|
|
|
|
|
|
|
The Results Agency Grand Cayman in the first half of 2014 was a profit of R$334,532 (2013 - R$894,780) and the result of subsidiary Santander Brazil EFC was a profit of R$18,847 (2013 - R$4,879). | ||||||||
|
|
|
|
|
|
|
|
|
55
|
|
|
|
|
|
|
|
|
|
|
14. Investments in Affiliates and Subsidiaries | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
|
|
|
| Quantity of Shares or Quotas Owned |
|
|
|
| ||
|
|
|
| Directly or Indirectly (in Thousands) |
|
|
| Direct | ||
|
|
|
| Common Shares | Preferred |
| Direct |
| and Indirect | |
Investments |
| Activity |
| and Quotas |
| Shares |
| Participation |
| Participation |
Controlled by Banco Santander |
|
|
|
|
|
|
|
|
|
|
Santander Leasing S.A. Arrendamento Mercantil (Santander Leasing) |
| Leasing |
| 11,043,796 |
| - |
| 78.57% |
| 99.99% |
Santander Brasil Administradora de Consórcio Ltda. (Santander Brasil Consórcio) |
| Consórcio |
| 95,349 |
| - |
| 100.00% |
| 100.00% |
Banco Bandepe S.A. (Banco Bandepe) |
| Bank |
| 2,184 |
| - |
| 100.00% |
| 100.00% |
Aymoré Crédito, Financiamento e Investimento S.A. (Aymoré CFI) |
| Financial |
| 287,706,670 |
| - |
| 100.00% |
| 100.00% |
Companhia de Crédito, Financiamento e Investimento RCI Brasil (CFI RCI Brasil) |
| Financial |
| 1 |
| 1 |
| 39.89% |
| 39.89% |
Santander Securities Services Brasil DTVM S.A. (12) |
| Dealer |
| 67 |
| - |
| 100.00% |
| 100.00% |
Santander Corretora de Câmbio e Valores Mobiliários S.A. (Santander CCVM) (13) |
| Broker |
| 14,067,673 |
| 14,067,673 |
| 99.99% |
| 100.00% |
Santander Microcrédito Assessoria Financeira S.A (Santander Microcrédito) |
| Microcredit |
| 43,129,918 |
| - |
| 100.00% |
| 100.00% |
Santander Brasil Advisory Services S.A. (Santander Brasil Advisory) |
| Other Activities |
| 1,323 |
| - |
| 96.52% |
| 96.52% |
Santander Participações S.A. (Santander Participações) |
| Holding |
| 3,234 |
| - |
| 100.00% |
| 100.00% |
Santander Getnet Serviços para Meios de Pagamento S.A.(Santander Getnet) (1) (10) | Other Activities |
| 8,000 |
| - |
| 50.00% |
| 50.00% | |
Sancap Investimentos e Participações S.A. (Sancap) |
| Holding |
| 11,251,175 |
| - |
| 100.00% |
| 100.00% |
Santander S.A. Serviços Técnicos, Administrativos e de Corretagem de Seguros (Santander Serviços) | Insurance Broker | 174,360,451 |
| - |
| 60.65% |
| 60.65% | ||
Mantiq Investimentos Ltda. (Mantiq) |
| Other Activities |
| 4,800 |
| - |
| 100.00% |
| 100.00% |
Santos Energia Participações S.A (Santos Energia)(8) |
| Holding |
| 131,583 |
| - |
| 100.00% |
| 100.00% |
Santander Brasil EFC |
| Financial |
| 75 |
| - |
| 100.00% |
| 100.00% |
56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
|
|
|
| Quantity of Shares or Quotas Owned |
|
|
|
| ||
|
|
|
| Directly or Indirectly (in Thousands) |
|
|
| Direct | ||
|
|
|
| Common Shares | Preferred |
| Direct |
| and Indirect | |
Investments |
| Activity |
| and Quotas |
| Shares |
| Participation |
| Participation |
Controlled by CFI RCI Brasil |
|
|
|
|
|
|
|
|
|
|
Companhia de Arrendamento Mercantil RCI Brasil (RCI Brasil Leasing) |
| Leasing |
| 163 |
| 81 |
| - |
| 100.00% |
Controlled by Sancap |
|
|
|
|
|
|
|
|
|
|
Santander Capitalização S.A. (Santander Capitalização) |
| Capitalization |
| 64,615 |
| - |
| - |
| 100.00% |
Evidence Previdência S.A. (Evidence)(7) |
| Holding |
| 1,938,026 |
| - |
| - |
| 100.00% |
Controlled by Santander Serviços |
|
|
|
|
|
|
|
|
|
|
Webcasas S.A. |
| Other Activities |
| 24,500 |
| - |
| - |
| 100.00% |
Controlled by Webmotors S.A.(4) |
|
|
|
|
|
|
|
|
|
|
Idéia Produções e Design Ltda. - MEC (Idéia Produções) |
| Other Activities |
| 220 |
| - |
| - |
| 100.00% |
KM Locanet Ltda. - ME (Compreauto)(9) |
| Other Activities |
| 1 |
| - |
| - |
| 100.00% |
Jointly Controlled Companies by Banco Santander |
|
|
|
|
|
|
|
|
|
|
Cibrasec Companhia Brasileira de Securitização (Cibrasec)(2) |
| Securitization |
| 9 |
| - |
| 13.64% |
| 13.64% |
Norchem Participações e Consultoria S.A. (Norchem Participações) |
| Other Activities |
| 950 |
| - |
| 50.00% |
| 50.00% |
Estruturadora Brasileira de Projetos S.A. - EBP (EBP)(2) |
| Other Activities |
| 3,859 |
| 2,953 |
| 11.11% |
| 11.11% |
BW Guirapá I S.A. (5) |
| Holding |
| 252 |
| - |
| 66.19% |
| 66.19% |
Jointly Controlled Companies by Santander Serviços |
|
|
|
|
|
|
|
|
|
|
Webmotors S.A.(4) |
| Other Activities |
| 366,182,676 |
| - |
| - |
| 70.00% |
TecBan - Tecnologia Bancária S.A. (TecBan) (11) |
| Other Activities |
| 781,971 |
| - |
| - |
| 20.82% |
Controlled by Santos Energia |
|
|
|
|
|
|
|
|
|
|
Central Eólica Santo Antônio de Pádua S.A. |
| Wind Energy |
| 22,613 |
| - |
| - |
| 100.00% |
Central Eólica São Cristóvão S.A. |
| Wind Energy |
| 40,497 |
| - |
| - |
| 100.00% |
Central Eólica São Jorge S.A. |
| Wind Energy |
| 42,810 |
| - |
| - |
| 100.00% |
Controlled by BW Guirapá S.A(5) |
|
|
|
|
|
|
|
|
|
|
Central Eólica Angical S.A. |
| Wind Energy |
| 50 |
| - |
| - |
| 100.00% |
Central Eólica Caititu S.A. |
| Wind Energy |
| 50 |
| - |
| - |
| 100.00% |
Central Eólica Coqueirinho S.A. |
| Wind Energy |
| 50 |
| - |
| - |
| 100.00% |
Central Eólica Corrupião S.A. |
| Wind Energy |
| 50 |
| - |
| - |
| 100.00% |
Central Eólica Inhambu S.A. |
| Wind Energy |
| 50 |
| - |
| - |
| 100.00% |
Central Eólica Tamanduá Mirim S.A. |
| Wind Energy |
| 50 |
| - |
| - |
| 100.00% |
Central Eólica Teiu S.A. |
| Wind Energy |
| 50 |
| - |
| - |
| 100.00% |
Affiliate |
|
|
|
|
|
|
|
|
|
|
Norchem Holdings e Negócios S.A. (Norchem Holdings) |
| Other Activities |
| 1,679 |
| - |
| 21.75% |
| 21.75% |
57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted |
| Net Income (Loss) |
|
|
|
|
|
|
| Equity Accounting |
|
| Stockholders' |
| Adjusted |
| Investments Value |
|
|
| Results | ||
|
| Equity |
| 01/01 to |
|
|
|
|
| 01/01 to |
| 01/01 to |
|
| 06/30/2014 |
| 06/30/2014 |
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Controlled by Banco Santander |
|
|
|
|
|
|
|
|
|
|
|
|
Santander Leasing |
| 5,142,848 |
| 157,486 |
| 4,040,944 |
| 3,863,494 |
| 123,743 |
| 137,217 |
Santander Brasil Asset Management Distribuidora de Títulos e Valores |
|
|
|
|
|
|
|
|
|
|
|
|
Mobiliários S.A. (Santander Brasil Asset)(6) |
| - |
| - |
| - |
| 196,972 |
| - |
| 24,529 |
Santander Brasil Consórcio |
| 137,197 |
| 10,159 |
| 137,197 |
| 119,545 |
| 10,159 |
| 11,509 |
Banco Bandepe |
| 3,014,472 |
| 103,430 |
| 3,014,472 |
| 2,902,302 |
| 103,430 |
| 78,700 |
Aymoré CFI |
| 1,179,909 |
| 125,534 |
| 1,179,909 |
| 1,099,673 |
| 125,534 |
| (18,286) |
CFI RCI Brasil |
| 1,176,927 |
| 58,201 |
| 469,487 |
| 424,114 |
| 23,218 |
| 43,148 |
Santander Securities Services Brasil DTVM S.A. (12) |
| 32,082 |
| 2,974 |
| 32,082 |
| 26,959 |
| 2,974 |
| 2,187 |
Santander CCVM (13) |
| 376,773 |
| 19,572 |
| 376,773 |
| 243,063 |
| 19,572 |
| 43,858 |
Santander Microcrédito |
| 21,974 |
| 582 |
| 21,974 |
| 21,503 |
| 582 |
| 2,438 |
Santander Brasil Advisory |
| 13,273 |
| 359 |
| 12,811 |
| 12,586 |
| 347 |
| 290 |
Santander Participações |
| 1,314,417 |
| 64,404 |
| 1,314,417 |
| 1,225,542 |
| 64,404 |
| 18,944 |
Santander Getnet(1) (10) |
| 70,144 |
| 56,144 |
| 35,072 |
| 27,552 |
| 25,715 |
| 20,044 |
Sancap |
| 335,608 |
| 46,512 |
| 335,608 |
| 340,733 |
| 46,512 |
| 44,891 |
Santander Serviços |
| 643,010 |
| 51,602 |
| 390,007 |
| 394,873 |
| 31,298 |
| 85,395 |
MS Participações Societárias S.A (MS Participações)(3) |
| - |
| - |
| - |
| 88,108 |
| - |
| 6,803 |
Mantiq |
| 8,275 |
| 1,338 |
| 8,275 |
| 6,743 |
| 1,338 |
| 239 |
Santos Energia (8) |
| 79,077 |
| (2,863) |
| 79,077 |
| 2,963 |
| (3,371) |
| (2,325) |
Santander Brasil EFC |
| 2,312,031 |
| 18,847 |
| 2,312,032 |
| 2,163,838 |
| 17,960 |
| 4,989 |
Controlled by CFI RCI Brasil |
|
|
|
|
|
|
|
|
|
|
|
|
RCI Brasil Leasing |
| 717,434 |
| 34,602 |
| - |
| - |
| - |
| - |
Controlled by Sancap |
|
|
|
|
|
|
|
|
|
|
|
|
Santander Capitalização |
| 215,473 |
| 42,161 |
| - |
| - |
| - |
| - |
Evidence(7) |
| 23,353 |
| 720 |
| - |
| - |
| - |
| - |
Controlled by Santander Serviços |
|
|
|
|
|
|
|
|
|
|
|
|
Webcasas S.A. |
| 22,971 |
| (1,001) |
| - |
| - |
| - |
| - |
58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted |
| Net Income (Loss) |
|
|
|
|
|
|
|
|
|
| Stockholders' |
| Adjusted |
| Investments Value |
|
|
| Equity Accounting | ||
|
| Equity |
| 01/01 to |
|
|
|
|
| 01/01 to |
| 01/01 to |
|
| 06/30/2014 |
| 06/30/2014 |
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Controlled by Webmotors S.A.(4) |
|
|
|
|
|
|
|
|
|
|
| |
Idéia Produções |
| 1,006 |
| 354 |
| - |
| - |
| - |
| - |
KM Locanet Ltda - ME (Compreauto)(9) |
| 754 |
| 569 |
| - |
| - |
| - |
| - |
Jointly Controlled Companies by Banco Santander |
|
|
|
|
|
|
|
|
|
|
|
|
Cibrasec(2) |
| 74,572 |
| 1,003 |
| 10,169 |
| 10,071 |
| 612 |
| 314 |
Norchem Participações |
| 50,050 |
| 1,543 |
| 24,425 |
| 23,552 |
| 772 |
| 524 |
EBP (2) |
| 75,683 |
| (2,376) |
| 8,409 |
| 7,412 |
| (2,599) |
| 1,857 |
BW Guirapá I S.A.(5) |
| 113,288 |
| (8,679) |
| 75,006 |
| - |
| (5,482) |
| - |
Jointly Controlled Companies by Santander Serviços |
|
|
|
|
|
|
|
|
|
|
|
|
Webmotors S.A.(4) |
| 225,946 |
| 16,460 |
| - |
| - |
| - |
| - |
TecBan (11) |
| 307,941 |
| 41,613 |
| - |
| - |
| - |
| - |
Controlled by Santos Energia |
|
|
|
|
|
|
|
|
|
|
|
|
Central Eólica Santo Antônio de Pádua S.A. |
| 23,860 |
| (303) |
| - |
| - |
| - |
| - |
Central Eólica São Cristóvão S.A. |
| 40,339 |
| (519) |
| - |
| - |
| - |
| - |
Central Eólica São Jorge S.A. |
| 41,812 |
| (453) |
| - |
| - |
| - |
| - |
Controlled by BW Guirapá S.A(5) |
|
|
|
|
|
|
|
|
|
| ||
Central Eólica Angical S.A. |
| 7,803 |
| (145) |
| - |
| - |
| - |
| - |
Central Eólica Caititu S.A. |
| 7,665 |
| (686) |
| - |
| - |
| - |
| - |
Central Eólica Coqueirinho S.A. |
| 9,928 |
| (888) |
| - |
| - |
| - |
| - |
Central Eólica Corrupião S.A. |
| 20,433 |
| (206) |
| - |
| - |
| - |
| - |
Central Eólica Inhambu S.A. |
| 11,232 |
| (1,029) |
| - |
| - |
| - |
| - |
Central Eólica Tamanduá Mirim S.A. |
| 9,800 |
| (1,039) |
| - |
| - |
| - |
| - |
Central Eólica Teiu S.A. |
| 8,377 |
| (206) |
| - |
| - |
| - |
| - |
Affiliate |
|
|
|
|
|
|
|
|
|
|
|
|
BW Guirapá I S.A. (5) |
| - |
| - |
| - |
| 49,912 |
| - |
| (88) |
Norchem Holdings |
| 127,811 |
| 3,231 |
| 25,102 |
| 26,728 |
| 703 |
| 5,584 |
Total Bank |
|
|
|
|
| 13,903,248 |
| 13,278,238 |
| 587,421 |
| 512,761 |
Affiliate |
|
|
|
|
|
|
|
|
|
|
|
|
BW Guirapá I S.A. (5) |
| - |
| - |
| 642 |
| 49,912 |
| (412) |
| (88) |
Norchem Holdings |
| 127,811 |
| 3,231 |
| 25,102 |
| 26,728 |
| 703 |
| 5,584 |
Total Consolidated |
|
|
|
|
| 25,744 |
| 76,640 |
| 291 |
| 5,496 |
(1) Banco Santander has authority to make decisions related to business strategy, additionally, Banco Santander allows Santander Getnet the use of its branch network and brand for the sale of products, which among other factors determines the Bank's control of Santander Getnet. | ||||||||||||
59
(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) Banco Santander has increased the share capital of MS Holdings in the amount of R$40,000 in February, R$14,685 in May, R$6,000 in July, R$41,000 in August and R$3,315 in October totaling an increase of R$105,000 in 2013, by issuing new shares. On November 22, 2013 Banco Santander sold its 100% stake of MS Holdings concerning 61,083,484 thousand shares for Capital Riesgo Global S.C.R Regimen Simplified S.A. (Note 36.d). | ||||||||||||||||||||
(4) On June 28, 2013, the capital increase of Webmotors SA for R$180,000, through the issue of 156.935.435 thousand shares Carsales.com Investments PTY LTD. (Carsales) (Note 36.d). Although participation exceeds 50%, in accordance with the shareholders' agreement, Banco Santander and Carsales now share control. | ||||||||||||||||||||
(5) In June 2013, Banco Santander endorsed R$95,000 and paid R$50,000 in the BW Guirapá I S.A.’s and in October 2013 there was a capital payment in the amount of R$37,801 without issuance of new shares. On February 28, 2014, Banco Santander made a capital amounting to R$60,000, through the issue of 97,669 new ordinary shares, altering its share of 40.57% to 66.19% in the capital (Note 36.d). With the change in shareholding, from February 2014, Banco Santander now holds joint control of that company. | ||||||||||||||||||||
(6) Investment sold on December 17, 2013 (Note 36.b). | ||||||||||||||||||||
(7) On October 24, 2013, the Sancap acquired from Banco Santander Spain 50,800 common shares, no face value, referred to 100% of the share capital of Ablasa Participações S.A. (Ablasa). On October 31, 2013, was effected an increase in capital by Sancap R$44,949 in value, 1.937.975.272 through the issue of new common shares, no face value. At the Extraordinary Shareholders Meeting ESM) held on December 2, 2013, to change the name of Ablasa Evidence for Security S.A., and the change in its bylaws for the establishment and operation of pension benefit plans granted character was adopted in the form of continued income or single payment accessible to any individuals whose case is pending approval by Susep. | ||||||||||||||||||||
(8) On November 18, 2013, was effected capital increase of R$59,000 with the issuance of 94,177 new common shares. | ||||||||||||||||||||
(9) Investment acquired on March 7, 2014 (Note 36.d). | ||||||||||||||||||||
(10) On April 4, 2014, was realized the payment of the total capital of Santander Getnet the amount of R$3,000, from the current R$13,000 to R$16,000. | ||||||||||||||||||||
(11) The Shareholders’ Meeting of April 9, 2014 the capital increase of TecBan of R$99,397 was approved from the current R$166,406 to R$265,803, without the issuance of new shares by capitalization of income for the year ended 31 December 2013 and all of its reserves, excluding capital reserves. | ||||||||||||||||||||
(12) The Shareholders’ Meeting of June 6, 2014, was approved to change the name of the CRV Distributor Securities S.A. (CRV DTVM) for Santander Securities Services Brazil DTVM S.A., pending approval by the Bacen (Note 36.a). | ||||||||||||||||||||
(13) The Shareholders’ Meeting of June 10, 2014, was approved the increase of the share capital of Santander CCVM of R$100,302 from the current R$195,698 to R$296,000, through the issue of 7,715,540,000 new shares, of which 3,857,770,000 common shares and 3,857,770,000 preferred capital increase was approved by the Bacen on July 3, 2014. |
60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
15. Fixed Assets |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 | |||||||||||||||
|
|
|
|
|
|
|
| Cost |
| Depreciation | Net |
| Net | ||||||||||||||||
Real Estate |
|
|
|
|
| 2,460,719 |
| (491,208) |
| 1,969,511 |
| 1,593,862 | |||||||||||||||||
Land |
|
|
|
|
| 675,016 |
| - |
| 675,016 |
| 679,467 | |||||||||||||||||
Buildings |
|
|
|
|
| 1,785,703 |
| (491,208) |
| 1,294,495 |
| 914,395 | |||||||||||||||||
Others Fixed Assets |
|
|
|
|
| 9,154,518 |
| (4,921,276) |
| 4,233,242 |
| 4,157,597 | |||||||||||||||||
Installations, Furniture and Equipment |
| 2,445,633 |
| (1,002,536) |
| 1,443,097 |
| 1,165,895 | |||||||||||||||||||||
Data Processing Equipment |
|
|
| 2,517,073 |
| (1,789,465) |
| 727,608 |
| 439,752 | |||||||||||||||||||
Leasehold Improvements |
|
|
| 3,046,260 |
| (1,546,329) |
| 1,499,931 |
| 1,337,959 | |||||||||||||||||||
Security and Communication Equipment |
| 599,089 |
| (339,536) |
| 259,553 |
| 209,650 | |||||||||||||||||||||
Others |
|
|
|
|
| 546,463 |
| (243,410) |
| 303,053 |
| 1,004,341 | |||||||||||||||||
Total |
|
|
|
|
| 11,615,237 |
| (5,412,484) |
| 6,202,753 |
| 5,751,459 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 | |||||||||||||||
|
|
|
|
|
|
|
| Cost |
| Depreciation | Net |
| Net | ||||||||||||||||
Real Estate |
|
|
|
|
| 2,469,326 |
| (494,819) |
| 1,974,507 |
| 1,598,958 | |||||||||||||||||
Land |
|
|
|
|
| 676,507 |
| - |
| 676,507 |
| 680,958 | |||||||||||||||||
Buildings |
|
|
|
|
| 1,792,819 |
| (494,819) |
| 1,298,000 |
| 918,000 | |||||||||||||||||
Others Fixed Assets |
|
|
|
|
| 9,487,240 |
| (5,098,297) |
| 4,388,943 |
| 4,287,054 | |||||||||||||||||
Installations, Furniture and Equipment |
| 2,534,589 |
| (1,052,945) |
| 1,481,644 |
| 1,199,087 | |||||||||||||||||||||
Data Processing Equipment |
|
|
| 2,674,178 |
| (1,879,002) |
| 795,176 |
| 503,789 | |||||||||||||||||||
Leasehold Improvements |
|
|
| 3,098,473 |
| (1,573,221) |
| 1,525,252 |
| 1,364,860 | |||||||||||||||||||
Security and Communication Equipment |
| 606,495 |
| (343,811) |
| 262,684 |
| 210,211 | |||||||||||||||||||||
Others |
|
|
|
|
| 573,505 |
| (249,318) |
| 324,187 |
| 1,009,107 | |||||||||||||||||
Total |
|
|
|
|
| 11,956,566 |
| (5,593,116) |
| 6,363,450 |
| 5,886,012 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
16. Intangibles |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 | |||||||||||||||
|
|
|
|
|
|
|
| Cost |
| Amortization | Net |
| Net | ||||||||||||||||
Goodwill on Acquired Companies |
|
|
| 26,020,084 |
| (18,663,299) |
| 7,356,785 |
| 10,985,776 | |||||||||||||||||||
Other Intangible Assets |
|
|
| 6,880,264 |
| (3,524,528) |
| 3,355,736 |
| 3,785,157 | |||||||||||||||||||
Acquisition and Development of Software |
| 4,265,223 |
| (2,403,835) |
| 1,861,388 |
| 2,010,028 | |||||||||||||||||||||
Exclusivity Contracts for Provision of Banking Services | 2,452,681 |
| (1,076,998) |
| 1,375,683 |
| 1,638,587 | ||||||||||||||||||||||
Others |
|
|
|
|
| 162,360 |
| (43,695) |
| 118,665 |
| 136,542 | |||||||||||||||||
Total |
|
|
|
|
| 32,900,348 |
| (22,187,827) |
| 10,712,521 |
| 14,770,933 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 | |||||||||||||||
|
|
|
|
|
|
|
| Cost |
| Amortization | Net |
| Net | ||||||||||||||||
Goodwill on Acquired Companies |
|
|
| 26,276,031 |
| (18,689,923) |
| 7,586,108 |
| 11,186,970 | |||||||||||||||||||
Other Intangible Assets |
|
|
| 7,042,233 |
| (3,590,777) |
| 3,451,456 |
| 3,888,776 | |||||||||||||||||||
Acquisition and Development of Software |
| 4,416,616 |
| (2,467,403) |
| 1,949,213 |
| 2,103,145 | |||||||||||||||||||||
Exclusivity Contracts for Provision of Banking Services | 2,452,681 |
| (1,076,998) |
| 1,375,683 |
| 1,638,587 | ||||||||||||||||||||||
Others |
|
|
|
|
| 172,936 |
| (46,376) |
| 126,560 |
| 147,044 | |||||||||||||||||
Total |
|
|
|
|
| 33,318,264 |
| (22,280,700) |
| 11,037,564 |
| 15,075,746 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Goodwill is measured annually, or whenever there is any indication that the asset may be impaired. We record our goodwill according to our operating segments. | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Value in use is used as the base to evaluate goodwill with the impairment test. For this purpose, we estimate cash flow for a period of 5 years.We prepare cash flows considering several factors, including: (i) macro-economic projections, such as interest rates, inflation and exchange rates, among others, (ii) the performance and growth estimates of the Brazilian financial system, (iii) increased costs, returns, synergies and investment plans, (iv) the behavior of customers, and (v) the growth rate and long-term adjustments to cash flows. These estimates rely on assumptions regarding the likelihood of future events, and changing certain factors could result in differing outcomes. The estimate of cash flows is based on assessment valuations prepared by independent research company, annually, which is reviewed and approved by the Executive Board. | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Based on the assumptions described above, has not identified any impairment of goodwill.
| |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
61
17. Money Market Funding and Borrowings and Onlendings |
a) Deposits | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
Without | Up to 3 | From 3 to | Over 12 | |||||||||
|
| Maturity |
| Months |
| 12 Months |
| Months |
| Total |
| Total |
Demand Deposits |
| 14,959,503 |
| - |
| - |
| - |
| 14,959,503 |
| 13,619,955 |
Savings Deposits |
| 35,778,901 |
| - |
| - |
| - |
| 35,778,901 |
| 29,293,118 |
Interbank Deposits |
| - |
| 10,111,527 |
| 24,941,676 |
| 688,503 |
| 35,741,706 |
| 25,581,822 |
Time Deposits |
| 240,784 |
| 18,808,423 |
| 11,829,782 |
| 49,041,657 |
| 79,920,646 |
| 80,237,870 |
Total |
| 50,979,188 |
| 28,919,950 |
| 36,771,458 |
| 49,730,160 |
| 166,400,756 |
| 148,732,765 |
Current |
|
|
|
|
|
|
|
|
| 116,670,596 |
| 95,452,156 |
Long-term |
|
|
|
|
|
|
|
|
| 49,730,160 |
| 53,280,609 |
|
|
|
|
|
|
|
|
|
|
|
| Consolidated |
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
Without | Up to 3 | From 3 to | Over 12 | |||||||||
|
| Maturity |
| Months |
| 12 Months |
| Months |
| Total |
| Total |
Demand Deposits |
| 14,634,502 |
| - |
| - |
| - |
| 14,634,502 |
| 13,385,356 |
Savings Deposits |
| 35,778,901 |
| - |
| - |
| - |
| 35,778,901 |
| 29,293,118 |
Interbank Deposits |
| - |
| 951,257 |
| 1,773,832 |
| 1,447,383 |
| 4,172,472 |
| 3,603,722 |
Time Deposits |
| 240,784 |
| 18,808,422 |
| 11,649,088 |
| 48,833,623 |
| 79,531,917 |
| 79,864,888 |
Total |
| 50,654,187 |
| 19,759,679 |
| 13,422,920 |
| 50,281,006 |
| 134,117,792 |
| 126,147,084 |
Current |
|
|
|
|
|
|
|
|
| 83,836,786 |
| 72,539,907 |
Long-term |
|
|
|
|
|
|
|
|
| 50,281,006 |
| 53,607,177 |
b) Money Market Funding | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
Up to 3 | From 3 to | Over 12 | ||||||||||
|
|
|
| Months |
| 12 Months |
| Months |
| Total |
| Total |
Own Portfolio |
|
|
| 51,289,392 |
| 13,336,255 |
| 26,794,076 |
| 91,419,723 |
| 70,342,830 |
Government Securities |
|
|
| 45,459,537 |
| 26,049 |
| - |
| 45,485,586 |
| 30,418,237 |
Others |
|
|
| 5,829,855 |
| 13,310,206 |
| 26,794,076 |
| 45,934,137 |
| 39,924,593 |
Third Parties |
|
|
| 2,999,995 |
| - |
| - |
| 2,999,995 |
| 13,647,961 |
Linked to Trading Portfolio Operations |
| - |
| 245,286 |
| 10,751,987 |
| 10,997,273 |
| 10,913,908 | ||
Total |
|
|
| 54,289,387 |
| 13,581,541 |
| 37,546,063 |
| 105,416,991 |
| 94,904,699 |
Current |
|
|
|
|
|
|
|
|
| 67,870,928 |
| 67,060,306 |
Long-term |
|
|
|
|
|
|
|
|
| 37,546,063 |
| 27,844,393 |
|
|
|
|
|
|
|
|
|
|
|
| Consolidated |
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
Up to 3 | From 3 to | Over 12 | ||||||||||
|
|
|
| Months |
| 12 Months |
| Months |
| Total |
| Total |
Own Portfolio |
|
|
| 37,382,549 |
| 12,582,394 |
| 26,683,232 |
| 76,648,175 |
| 58,200,989 |
Government Securities |
|
|
| 31,552,694 |
| 26,049 |
| - |
| 31,578,743 |
| 20,671,026 |
Debt Securities in Issue |
|
|
| 5,097,413 |
| 10,412,355 |
| 23,704,126 |
| 39,213,894 |
| 36,021,204 |
Others |
|
|
| 732,442 |
| 2,143,990 |
| 2,979,106 |
| 5,855,538 |
| 1,508,759 |
Third Parties |
|
|
| 2,299,998 |
| - |
| - |
| 2,299,998 |
| 9,756,160 |
Linked to Trading Portfolio Operations |
| - |
| 245,286 |
| 10,751,987 |
| 10,997,273 |
| 10,913,908 | ||
Total |
|
|
| 39,682,547 |
| 12,827,680 |
| 37,435,219 |
| 89,945,446 |
| 78,871,057 |
Current |
|
|
|
|
|
|
|
|
| 52,510,227 |
| 52,234,504 |
Long-term |
|
|
|
|
|
|
|
|
| 37,435,219 |
| 26,636,553 |
62
c) Funds from Acceptance and Issuance of Securities | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Bank | |
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 | |
|
| Up to 3 |
| From 3 to |
| Over 12 |
|
|
|
| |
|
| Months |
| 12 Months | Months |
| Total |
| Total | ||
Real Estate Credit Notes, Mortgage Notes, Credit and Similar Notes | 7,787,758 |
| 34,384,541 |
| 10,322,977 |
| 52,495,276 |
| 43,015,590 | ||
Real Estate Credit Notes - LCI(1) |
| 6,743,518 |
| 12,423,588 |
| 1,187,391 |
| 20,354,497 |
| 12,934,136 | |
Agribusiness Credit Notes - LCA (2) |
| 897,872 |
| 897,503 |
| 246 |
| 1,795,621 |
| 1,522,332 | |
Treasury Bills(3) |
| 146,368 |
| 21,063,450 |
| 9,135,340 |
| 30,345,158 |
| 28,559,122 | |
Securities Issued Abroad |
| 494,935 |
| 3,280,601 |
| 8,833,616 |
| 12,609,152 |
| 18,813,366 | |
Eurobonds |
| 241,838 |
| 2,909,506 |
| 7,587,034 |
| 10,738,378 |
| 16,538,079 | |
Securitization Notes - MT100 (4) |
| 253,097 |
| 371,095 |
| 1,246,582 |
| 1,870,774 |
| 2,275,287 | |
Funding by Structured Operations Certificates | 1,739 |
| 159,240 |
| - |
| 160,979 |
| - | ||
Total |
| 8,284,432 |
| 37,824,382 |
| 19,156,593 |
| 65,265,407 |
| 61,828,956 | |
Current |
|
|
|
|
|
|
| 46,108,814 |
| 27,801,661 | |
Long-term |
|
|
|
|
|
|
| 19,156,593 |
| 34,027,295 | |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Consolidated | |
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 | |
|
| Up to 3 |
| From 3 to |
| Over 12 |
|
|
|
| |
|
| Months |
| 12 Months | Months |
| Total |
| Total | ||
Exchange Acceptances |
| 338,767 |
| 225,389 |
| 476,151 |
| 1,040,307 |
| 1,127,857 | |
Debentures Resources(5) |
| 368,513 |
| - |
| - |
| 368,513 |
| 201,434 | |
Real Estate Credit Notes, Mortgage Notes, |
|
|
|
|
|
|
|
| |||
Credit and Similar Notes |
| 8,169,381 |
| 34,725,019 |
| 12,665,356 |
| 55,559,756 |
| 44,813,277 | |
Real Estate Credit Notes - LCI(1) |
| 6,743,518 |
| 12,425,200 |
| 1,188,003 |
| 20,356,721 |
| 12,937,730 | |
Agribusiness Credit Notes - LCA(2) |
| 897,872 |
| 897,503 |
| 246 |
| 1,795,621 |
| 1,522,332 | |
Treasury Bills(3) |
| 527,991 |
| 21,402,316 |
| 11,477,107 |
| 33,407,414 |
| 30,353,215 | |
Securities Issued Abroad |
| 494,935 |
| 3,280,601 |
| 8,833,616 |
| 12,609,152 |
| 18,813,366 | |
Eurobonds |
| 241,838 |
| 2,909,506 |
| 7,587,034 |
| 10,738,378 |
| 16,538,079 | |
Securitization Notes - MT100 (4) |
| 253,097 |
| 371,095 |
| 1,246,582 |
| 1,870,774 |
| 2,275,287 | |
Funding by Structured Operations Certificates | 1,739 |
| 159,240 |
| - |
| 160,979 |
| - | ||
Total |
| 9,373,335 |
| 38,390,249 |
| 21,975,123 |
| 69,738,707 |
| 64,955,934 | |
Current |
|
|
|
|
|
|
| 47,763,584 |
| 28,693,532 | |
Long-term |
|
|
|
|
|
|
| 21,975,123 |
| 36,262,402 | |
(1) Real Estate Credit Notes are fixed income securities are by mortgages and mortgage-backed securities or liens on property. On June 30, 2014, has maturities between 2014 to 2020. | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
(2) Agribusiness credit notes are fixed income securities which resources are allocated to the promotion of agribusiness, indexed between 85.0% to 100.0% of CDI. On June 30, 2014, has maturities between 2014 to 2015. | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
(3) 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 June 30, 2014, has maturities between 2014 to 2025. | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
(4) Issuance of securities linked to the right to receive of future flow of payment orders receivable from foreign correspondent banks. | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
(5)On June 30, 2014, the debentures issued by the subsidiary Santos Energia in April 2013, with remuneration indexed to CDI + 1.60% p.a. maturing on April 12, 2014, extended the maturing to July 12, 2014, with indexed to CDI + 1.55% p.a. and subsidiary by BW Guirapá I S.A., in August 2013, indexed to CDI +1.55% p.a., maturing on August 28, 2014. On June 30, 2013, refer to debentures issued by the subsidiary MS Participações in three series (November 2011 - R$82,122, March 2012 - R$47,592 and May 2012 - R$33,732) with earnings indexed to CDI + 1.77% p.a. and maturing on August 21, 2013, on November 22, 2013, Banco Santander sold its 100% interest in MS interests (Note 14 and 36.c). | |||||||||||
63
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| Bank/Consolidated | ||||
|
|
|
|
|
|
|
| Interest Rate (p.a) | 06/30/2014 |
| 06/30/2013 | |||||
Eurobonds |
| Issuance |
| Maturity |
| Currency |
|
|
| Total |
| Total | ||||
Eurobonds |
| February and September-12 | February-17 |
| US$ |
| 4.6% |
| 3,001,128 |
| 3,046,220 | |||||
Eurobonds |
| April and November-10 | April-15 |
| US$ |
| 4.5% |
| 1,827,864 |
| 1,883,055 | |||||
Eurobonds |
| January and June-11 | January-16 |
| US$ |
| 4.3% |
| 1,890,493 |
| 1,895,197 | |||||
Eurobonds(2) |
| March and May-13 | March-16 |
| R$ |
| 8.0% |
| 1,282,337 |
| 1,284,705 | |||||
Eurobonds |
| March-13 |
| April-18 |
| US$ |
| 4.5% to 8.4%(1) | 739,544 |
| 743,772 | |||||
Eurobonds(2) |
| April-12 |
| April-16 |
| CHF |
| 3.3% |
| 375,593 |
| 354,692 | ||||
Eurobonds(2) |
| June-11 |
| December-14 |
| CHF |
| 3.1% |
| 379,186 |
| 358,013 | ||||
Eurobonds(2) |
| June-13 |
| June-15 |
| CHF |
| 1.1% |
| 312,240 |
| 294,210 | ||||
Eurobonds(2) |
| March-13 |
| March-15 |
| CHF |
| 1.7% |
| 173,983 |
| 164,166 | ||||
Eurobonds(2) |
| April-12 |
| April-16 |
| CLP |
| 4.6% |
| 90,553 |
| 93,768 | ||||
Eurobonds(2) |
| December-12 |
| December-14 |
| CNY |
| 2.1% |
| 53,253 |
| 54,198 | ||||
Eurobonds |
| March-11 |
| March-14 |
| US$ |
| Libor + 2.1% |
| - |
| 2,658,720 | ||||
Eurobonds |
| November-05 |
| November-13 |
| R$ |
| 17.1% |
| - |
| 167,999 | ||||
Others |
|
|
|
|
|
|
|
|
| 612,204 |
| 3,539,364 | ||||
Total |
|
|
|
|
|
|
|
|
| 10,738,378 |
| 16,538,079 | ||||
(1) The operation has compound interest flow: to April,17, 2013 equal 4.5% p.a., in period April, 18, 2013 to the October, 17, 2017 equal 8.4% p.a. and October, 18, 2017 to the April 17, 2018 equal 7.0% p.a. | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
(2) Includes R$2,354,905 (06/30/2013 - R$2,309,542) in cash flow hedge operations, being R$1,282,337 (06/30/2013 - R$1,284,705) indexed in real, R$928,762 (06/30/2013 - R$876,871) indexed on foreign currency - Swiss Franc, R$90,553 (06/30/2013 - R$93,768) in Chilean Peso and R$53,253 (06/30/2013 - R$54,198) in Iuan (Note 6.b.VI.b), and R$312,240 (06/30/2013 - R$294,210) for market risk hedge operations indexed to foreign currency - Swiss Franc (Note 6.b.VI.a). | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| Bank/Consolidated | ||||
|
|
|
|
|
|
|
| Interest |
| 06/30/2014 |
| 06/30/2013 | ||||
Securitization Notes - MT100 | Issuance |
| Maturity |
| Currency |
| Rate (p.a)(1) | Total |
| Total | ||||||
2008-1 Series |
| May-08 |
| March-15 |
| US$ |
| 6.2% |
| 95,841 |
| 187,112 | ||||
2008-2 Series (2) |
| August-08 |
| September-17 | US$ |
| Libor (6 Months) + 0.8% | 883,821 |
| 889,303 | ||||||
2009-1 Series |
| August-09 |
| September-14 | US$ |
| Libor (6 Months) + 2.1% | 19,266 |
| 57,111 | ||||||
2009-2 Series |
| August-09 |
| September-19 | US$ |
| 6.3% |
| 91,916 |
| 106,163 | |||||
2010-1 Series |
| December-10 |
| March-16 |
| US$ |
| Libor (6 Months) + 1.5% | 316,269 |
| 477,375 | |||||
2011-1 Series |
| May-11 |
| March-18 |
| US$ |
| 4.2% |
| 198,062 |
| 224,145 | ||||
2011-2 Series |
| May-11 |
| March-16 |
| US$ |
| Libor (6 Months) + 1.4% | 265,599 |
| 334,078 | |||||
Total |
|
|
|
|
|
|
|
|
| 1,870,774 |
| 2,275,287 | ||||
(1) Charges payable semiannually. |
|
|
|
|
|
|
|
| ||||||||
(2) Notional will be paid in 6 semiannual installments from March 2015. |
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
d) Money Market Funding Expenses |
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated | ||||
|
|
|
|
|
| 01/01 to |
| 01/01 to |
| 01/01 to |
| 01/01 to | ||||
|
|
|
|
|
| 06/30/2014 | 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 | |||||
Time Deposits(1) |
|
|
|
|
| 3,084,070 |
| 2,638,124 |
| 3,066,786 |
| 2,632,503 | ||||
Savings Deposits |
|
|
|
|
| 1,130,445 |
| 767,461 |
| 1,130,445 |
| 767,461 | ||||
Interbank Deposits |
|
|
|
|
| 1,381,381 |
| 858,796 |
| 194,942 |
| 151,647 | ||||
Money Market Funding |
|
|
| 6,110,109 |
| 3,885,271 |
| 5,206,854 |
| 3,443,200 | ||||||
Provisions and Capitalization Adjustment and Interest | - |
| - |
| 53,862 |
| 44,613 | |||||||||
Others(2) |
|
|
|
|
| 2,886,995 |
| 3,476,826 |
| 3,100,992 |
| 3,617,347 | ||||
Total |
|
|
|
|
| 14,593,000 |
| 11,626,478 |
| 12,753,881 |
| 10,656,771 | ||||
(1) Includes the record of interest in the amount of R$195,617 related to the issuance of the Debt Instrument Eligible Tier II Capital (Note 20). | ||||||||||||||||
(2) Includes, mainly, expense funds from acceptance and issuance of securities. | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
64
e) Borrowings and Onlendings |
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 | |||||||||||||||
|
|
|
|
|
| Up to 3 |
| From 3 to |
| Over 12 |
|
|
|
| |||||||||||||||
|
|
|
|
|
| Months |
| 12 Months | Months |
| Total |
| Total | ||||||||||||||||
Domestic Borrowings |
| 10,006 |
| 29,451 |
| 11,606 |
| 51,063 |
| 98,485 | |||||||||||||||||||
Foreign Borrowings |
|
| 4,917,309 |
| 11,828,681 |
| 1,318,546 |
| 18,064,536 |
| 16,855,076 | ||||||||||||||||||
Import and Export Financing Lines | 4,538,085 |
| 11,828,681 |
| 1,318,546 |
| 17,685,312 |
| 15,849,074 | ||||||||||||||||||||
Other Credit Lines |
|
|
| 379,224 |
| - |
| - |
| 379,224 |
| 1,006,002 | |||||||||||||||||
Domestic Onlendings |
|
| 1,188,318 |
| 2,642,589 |
| 9,111,697 |
| 12,942,604 |
| 9,559,146 | ||||||||||||||||||
Foreign Onlendings |
|
| 9,348 |
| - |
| - |
| 9,348 |
| 28,782 | ||||||||||||||||||
Total |
|
|
| 6,124,981 |
| 14,500,721 |
| 10,441,849 |
| 31,067,551 |
| 26,541,489 | |||||||||||||||||
Current |
|
|
|
|
|
|
|
|
| 20,625,702 |
| 18,490,881 | |||||||||||||||||
Long-term |
|
|
|
|
|
|
|
|
| 10,441,849 |
| 8,050,608 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 | |||||||||||||||
|
|
|
|
|
| Up to 3 |
| From 3 to |
| Over 12 |
|
|
|
| |||||||||||||||
|
|
|
|
|
| Months |
| 12 Months | Months |
| Total |
| Total | ||||||||||||||||
Domestic Borrowings |
| 10,006 |
| 44,432 |
| 11,606 |
| 66,044 |
| 98,485 | |||||||||||||||||||
Foreign Borrowings |
|
| 4,917,309 |
| 11,828,681 |
| 1,318,546 |
| 18,064,536 |
| 16,877,676 | ||||||||||||||||||
Import and Export Financing Lines | 4,538,085 |
| 11,828,681 |
| 1,318,546 |
| 17,685,312 |
| 15,871,674 | ||||||||||||||||||||
Other Credit Lines |
|
|
| 379,224 |
| - |
| - |
| 379,224 |
| 1,006,002 | |||||||||||||||||
Domestic Onlendings |
|
| 1,188,318 |
| 2,642,589 |
| 9,111,697 |
| 12,942,604 |
| 9,559,146 | ||||||||||||||||||
Foreign Onlendings |
|
| 9,348 |
| - |
| - |
| 9,348 |
| 28,782 | ||||||||||||||||||
Total |
|
|
| 6,124,981 |
| 14,515,702 |
| 10,441,849 |
| 31,082,532 |
| 26,564,089 | |||||||||||||||||
Current |
|
|
|
|
|
|
|
|
| 20,640,683 |
| 18,513,481 | |||||||||||||||||
Long-term |
|
|
|
|
|
|
|
|
| 10,441,849 |
| 8,050,608 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
In the Bank and Consolidated, export and import financing lines are funds raised from foreign banks, for use in commercial foreign exchange transactions, related to the discounting of export bills and export and import pre-financing, falling due through 2018 (06/30/2013 - through 2014) and subject to financial charges corresponding to exchange rate changes plus interest ranging from 0.7% p.a. to 6.9% p.a. (06/30/2013 - 0.4% p.a. to 17.9% p.a.). | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Domestic onlendings - official institutions are subject to financial charges corresponding to the TJLP, exchange variation of the currency basket of the Banco Nacional de Desenvolvimento Econômico e Social (BNDES), or US dollar exchange variation, plus interest rate in accordance with the operating policies of the BNDES System. | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
In the Bank and Consolidated, foreign onlendings are subject to interest ranging from 1.5% p.a. (06/30/2013 - 1.5% p.a.), plus exchange rate change falling due through up to 2014 (06/30/2013 - through 2014). | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
18. Tax and Social Security | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Tax and social security payables comprise taxes payable and amounts being challenged in the courts. | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated | |||||||||||||||
|
|
|
|
|
|
|
| 06/30/2014 | 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 | ||||||||||||||||
Provision for Tax Risks and Legal Obligations (Note 22.b) | 10,585,640 |
| 10,371,843 |
| 13,342,205 |
| 12,753,136 | ||||||||||||||||||||||
Reserve for Tax Contingencies - Responsibility of Former Controlling(Note 22.i) | 734,824 |
| 832,241 |
| 829,625 |
| 999,113 | ||||||||||||||||||||||
Deferred Tax Liabilities |
|
|
| 1,353,514 |
| 1,298,454 |
| 2,080,681 |
| 2,443,938 | |||||||||||||||||||
Provision for Taxes and Contributions on Income |
| 475,953 |
| - |
| 652,347 |
| 143,695 | |||||||||||||||||||||
Taxes Payable |
|
|
|
|
| 271,284 |
| 257,612 |
| 309,224 |
| 303,302 | |||||||||||||||||
Total |
|
|
|
|
| 13,421,215 |
| 12,760,150 |
| 17,214,082 |
| 16,643,184 | |||||||||||||||||
Current |
|
|
|
|
| 1,395,076 |
| 895,880 |
| 1,968,035 |
| 1,885,652 | |||||||||||||||||
Long-term |
|
|
|
|
| 12,026,139 |
| 11,864,270 |
| 15,246,047 |
| 14,757,532 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
65
a) Nature and Origin of Deferred Tax Liabilities |
|
|
|
|
|
|
|
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank | ||||||||||||||
|
|
|
|
|
|
|
| 12/31/2013 | Recognition | Realization | 06/30/2014 | |||||||||||||||||
Adjustment to Fair Value of Trading Securities and Derivatives(1) | 840,748 |
| 59,502 |
| - |
| 900,250 | |||||||||||||||||||||
Adjustment to Fair Value of Available-for-Sale Securities and Cash Flow Hedge(1) | 94,707 |
| 342,402 |
| - |
| 437,109 | |||||||||||||||||||||
Excess Depreciation of Leased Assets |
| 19,473 |
| - |
| (3,894) |
| 15,579 | ||||||||||||||||||||
Others |
|
|
|
|
| 11,140 |
| - |
| (10,564) |
| 576 | ||||||||||||||||
Total |
|
|
|
|
| 966,068 |
| 401,904 |
| (14,458) |
| 1,353,514 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank | ||||||||||||||
|
|
|
|
|
|
|
| 12/31/2012 | Recognition | Realization | 06/30/2013 | |||||||||||||||||
Adjustment to Fair Value of Trading Securities and Derivatives(1) | 840,748 |
| 8,258 |
| (8,258) |
| 840,748 | |||||||||||||||||||||
Adjustment to Fair Value of Available-for-Sale Securities and Cash Flow Hedge(1) | 693,259 |
| - |
| (301,532) |
| 391,727 | |||||||||||||||||||||
Excess Depreciation of Leased Assets |
| 77,310 |
| - |
| (11,907) |
| 65,403 | ||||||||||||||||||||
Others |
|
|
|
|
| 576 |
| - |
| - |
| 576 | ||||||||||||||||
Total |
|
|
|
|
| 1,611,893 |
| 8,258 |
| (321,697) |
| 1,298,454 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated | ||||||||||||||
|
|
|
|
|
|
|
| 12/31/2013 | Recognition | Realization | 06/30/2014 | |||||||||||||||||
Adjustment to Fair Value of Trading Securities and Derivatives(1) | 855,629 |
| 59,510 |
| (8,861) |
| 906,278 | |||||||||||||||||||||
Adjustment to Fair Value of Available-for-Sale Securities and Cash Flow Hedge(1) | 100,124 |
| 343,207 |
| (1,372) |
| 441,959 | |||||||||||||||||||||
Excess Depreciation of Leased Assets |
| 875,385 |
| 13,070 |
| (164,500) |
| 723,955 | ||||||||||||||||||||
Others |
|
|
|
|
| 26,093 |
| - |
| (17,604) |
| 8,489 | ||||||||||||||||
Total |
|
|
|
|
| 1,857,231 |
| 415,787 |
| (192,337) |
| 2,080,681 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated | ||||||||||||||
|
|
|
|
|
|
|
| 12/31/2012 | Recognition | Realization | 06/30/2013 | |||||||||||||||||
Adjustment to Fair Value of Trading Securities and Derivatives(1) | 843,611 |
| 20,141 |
| (8,258) |
| 855,494 | |||||||||||||||||||||
Adjustment to Fair Value of Available-for-Sale Securities and Cash Flow Hedge(1) | 1,097,209 |
| 3,839 |
| (698,283) |
| 402,765 | |||||||||||||||||||||
Excess Depreciation of Leased Assets |
| 1,474,831 |
| 42,875 |
| (334,107) |
| 1,183,599 | ||||||||||||||||||||
Others |
|
|
|
|
| 738 |
| 1,504 |
| (162) |
| 2,080 | ||||||||||||||||
Total |
|
|
|
|
| 3,416,389 |
| 68,359 |
| (1,040,810) |
| 2,443,938 | ||||||||||||||||
(1) Includes tax credits IRPJ, CSLL, PIS and Cofins. |
|
|
|
|
|
| ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
b) Expected Realization of Deferred Tax Liabilities |
|
|
|
|
|
|
|
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank | ||||||||||||||
|
|
|
|
|
|
|
| Temporary Differences |
|
| ||||||||||||||||||
Year |
|
|
|
|
| IRPJ |
| CSLL |
| PIS/Cofins | Total | |||||||||||||||||
2014 |
|
|
|
|
|
|
| 152,423 |
| 89,896 |
| 29,213 |
| 271,532 | ||||||||||||||
2015 |
|
|
|
|
|
|
| 304,846 |
| 179,718 |
| 58,426 |
| 542,990 | ||||||||||||||
2016 |
|
|
|
|
|
|
| 179,441 |
| 104,366 |
| 33,963 |
| 317,770 | ||||||||||||||
2017 |
|
|
|
|
|
|
| 51,368 |
| 29,221 |
| 9,500 |
| 90,089 | ||||||||||||||
2018 |
|
|
|
|
|
|
| 48,701 |
| 29,221 |
| 9,500 |
| 87,422 | ||||||||||||||
2019 to 2021 |
|
|
|
|
| 24,351 |
| 14,610 |
| 4,750 |
| 43,711 | ||||||||||||||||
Total |
|
|
|
|
| 761,130 |
| 447,032 |
| 145,352 |
| 1,353,514 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
66
|
|
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated |
|
|
|
|
|
|
|
| Temporary Differences |
|
|
|
| ||
Year |
|
|
|
|
|
| IRPJ |
| CSLL |
| PIS/Cofins |
| Total | |
2014 |
|
|
|
|
|
|
| 333,990 |
| 91,034 |
| 29,394 |
| 454,418 |
2015 |
|
|
|
|
|
|
| 488,403 |
| 181,993 |
| 58,787 |
| 729,183 |
2016 |
|
|
|
|
|
|
| 252,432 |
| 106,138 |
| 34,161 |
| 392,731 |
2017 |
|
|
|
|
|
|
| 122,696 |
| 29,993 |
| 9,534 |
| 162,223 |
2018 |
|
|
|
|
|
|
| 119,205 |
| 29,499 |
| 9,534 |
| 158,238 |
2019 to 2021 |
|
|
|
|
| 164,372 |
| 14,749 |
| 4,767 |
| 183,888 | ||
Total |
|
|
|
|
| 1,481,098 |
| 453,406 |
| 146,177 |
| 2,080,681 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19. Subordinated Debts | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consist of securities issued according to Bacen. Rules, which are used as Tier II Regulatory Capital for calculating operating limits, according to the proportion defined by Resolution 4,192 of March 1, 2013, and the amendments introduced by Resolution 4,278 of October 31, 2013.
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank/Consolidated |
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
Subordinated Deposit Certificates | Issuance |
| Maturity(1) |
| Amount (Million) | Interest Rate (p.a.) | Total |
| Total | |||||
Subordinated Deposit Certificates | June-06 |
| July-16 |
| R$ 1.500 |
| 105.0% CDI |
| 3,479,679 |
| 3,159,106 | |||
Subordinated Deposit Certificates | October-06 |
| September-16 |
| R$ 850 |
| 104.5% CDI |
| 1,881,335 |
| 1,708,799 | |||
Subordinated Deposit Certificates | July-07 |
| July-14 |
| R$ 885 |
| 104.5% CDI |
| 1,772,084 |
| 1,609,568 | |||
Subordinated Deposit Certificates | July-06 to October-06 | July-16 and July-18 | R$ 447 |
| 104.5% CDI |
| 1,021,265 |
| 927,605 | |||||
Subordinated Deposit Certificates | May-08 to June-08 | May-13 to May-18 | R$ 283 |
| CDI (2) |
| 107,342 |
| 96,782 | |||||
Subordinated Deposit Certificates | May-08 to June-08 | May-13 to June-18 | R$ 268 |
| IPCA(3) |
| 399,448 |
| 345,941 | |||||
Subordinated Deposit Certificates | November-08 |
| November-14 |
| R$ 100 |
| 120.5% CDI |
| 187,504 |
| 167,819 | |||
Subordinated Deposit Certificates | January-07 |
| January-14 |
| R$ 250 |
| 104.5% CDI |
| - |
| 486,026 | |||
Subordinated Deposit Certificates | August-07 |
| August-13 |
| R$ 300 |
| 100.0% CDI + 0.4% | - |
| 543,985 | ||||
Total |
|
|
|
|
|
|
|
|
| 8,848,657 |
| 9,045,631 | ||
Current |
|
|
|
|
|
|
|
|
| 2,146,690 |
| 1,030,011 | ||
Long Term |
|
|
|
|
|
|
|
|
| 6,701,967 |
| 8,015,620 | ||
(1) Subordinated deposit certificates issued with yield paid at the end of the term together with the principal. | ||||||||||||||
(2) Indexed between 100% and 112% of CDI. |
|
|
|
|
|
|
|
| ||||||
(3) Indexed to the IPCA plus interest of 8.3% p.a. to 8.4% p.a. |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20. Debt Instruments Eligible to Compose Capital | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Details of the balance of Debt Instruments Eligible to Compose Capital for the issuance of equity instruments to compose the Tier I and Tier II of Regulatory Capital due to the Capital Optimization Plan (Note 23.f), are as follows: | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank/Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 06/30/2014 |
Debt Instruments Eligible to Compose Capital | Issuance |
| Maturity |
| Amount (Million) | Interest Rate (p.a.)(3) | Total | |||||||
Tier I(1) |
|
|
| January - 14 |
| No Deadline (Perpetual) | R$ 3.000 |
| 7.375% |
| 2,788,488 | |||
Tier II(2) |
|
|
| January - 14 |
| January - 24 | R$ 3.000 |
| 6.000% |
| 2,829,452 | |||
Total |
|
|
|
|
|
|
|
|
|
|
| 5,617,940 | ||
Current |
|
|
|
|
|
|
|
|
|
|
| 121,766 | ||
Long-term |
|
|
|
|
|
|
|
|
|
|
| 5,496,174 | ||
(1) Interest rate paid quarterly from April 29, 2014. |
|
|
|
|
|
|
|
| ||||||
(2) Interest rate paid semiannually from July 29, 2014. |
|
|
|
|
|
|
|
| ||||||
(3) The effective interest rate, considering the Taxes (IR) made by the issuer, is 8.676% and 7.059% for instruments Tier I and II, respectively. | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
67
21. Other Payables - Other |
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated | ||||||||||||||||
|
|
|
|
|
|
|
| 06/30/2014 | 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 | |||||||||||||||||
Provision Technical for Capitalization Operations |
| - |
| - |
| 1,667,744 |
| 1,620,399 | ||||||||||||||||||||||
Payables for Credit Cards |
|
|
| 15,301,553 |
| 11,361,851 |
| 15,301,560 |
| 11,361,867 | ||||||||||||||||||||
Provision for Legal and Administrative Proceedings - Labor and Civil (Note 22.b) | 3,498,480 |
| 3,411,858 |
| 3,732,029 |
| 3,619,915 | |||||||||||||||||||||||
Employee Benefit Plans (Note 34) |
|
|
| 2,952,880 |
| 2,984,631 |
| 2,968,776 |
| 3,074,554 | ||||||||||||||||||||
Payables for Acquisition of Assets and Rights(1) |
| 712,494 |
| 358,595 |
| 712,494 |
| 358,595 | ||||||||||||||||||||||
Reserve for Legal and Administrative Proceedings -Responsibility of Former Controlling Stockholders (Note 22.i) | 6,325 |
| 9,178 |
| 6,325 |
| 9,178 | |||||||||||||||||||||||
Accrued Liabilities |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Personnel Expenses |
|
|
| 1,346,481 |
| 1,180,011 |
| 1,425,897 |
| 1,259,917 | ||||||||||||||||||||
Administrative Expenses |
|
|
| 172,172 |
| 151,687 |
| 233,667 |
| 206,036 | ||||||||||||||||||||
Others Payments |
|
|
|
|
| 120,471 |
| 174,725 |
| 199,085 |
| 264,197 | ||||||||||||||||||
Creditors for Unreleased Funds |
|
|
| 994,407 |
| 734,415 |
| 994,407 |
| 734,415 | ||||||||||||||||||||
Provision of Payment Services |
|
|
| 198,507 |
| 162,118 |
| 198,507 |
| 162,118 | ||||||||||||||||||||
Agreements with Official Institutions |
|
|
| - |
| 87,384 |
| - |
| 87,384 | ||||||||||||||||||||
Suppliers |
|
|
|
|
| 225,772 |
| 191,391 |
| 653,134 |
| 534,951 | ||||||||||||||||||
Others |
|
|
|
|
| 2,663,290 |
| 2,222,705 |
| 3,507,401 |
| 2,660,717 | ||||||||||||||||||
Total |
|
|
|
|
| 28,192,832 |
| 23,030,549 |
| 31,601,026 |
| 25,954,243 | ||||||||||||||||||
Current |
|
|
|
|
| 23,582,041 |
| 18,380,319 |
| 26,326,186 |
| 20,892,254 | ||||||||||||||||||
Long-term |
|
|
|
|
| 4,610,791 |
| 4,650,230 |
| 5,274,840 |
| 5,061,989 | ||||||||||||||||||
(1) Refers basically to export notes loans operations in the amount of R$692,636 (06/30/2013 - R$339,607). | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
22. Contingent Assets and Liabilities and Legal Obligations - Tax and Social Security | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
a) Contingent Assets |
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
In the Bank and Consolidated, on June 30, 2014 and 2013 no contingent assets were accounted (Note 3.o). | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
b) Balance Sheet of Provisions for Judicial and Administrative Proceedings and Legal Obligations by Nature | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated | ||||||||||||||||
|
|
|
|
|
|
|
| 06/30/2014 | 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 | |||||||||||||||||
Reserve for Tax Contingencies and Legal Obligations (Note 18) | 10,585,640 |
| 10,371,843 |
| 13,342,205 |
| 12,753,136 | |||||||||||||||||||||||
Accrual for Legal and Administrative Proceedings - Labor and Civil (Note 21) | 3,498,480 |
| 3,411,858 |
| 3,732,029 |
| 3,619,915 | |||||||||||||||||||||||
Labor |
|
|
|
|
| 1,944,634 |
| 1,916,044 |
| 2,014,650 |
| 1,983,638 | ||||||||||||||||||
Civil |
|
|
|
|
| 1,553,846 |
| 1,495,814 |
| 1,717,379 |
| 1,636,277 | ||||||||||||||||||
Total |
|
|
|
|
| 14,084,120 |
| 13,783,701 |
| 17,074,234 |
| 16,373,051 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
c) Change in Accrual for Judicial and Administrative Proceedings and Legal Obligations | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank | ||||||||||||||||
|
|
|
|
|
|
|
| 01/01 to |
|
|
| 01/01 to | ||||||||||||||||||
|
|
|
|
|
|
|
| 06/30/2014 |
|
|
| 06/30/2013 | ||||||||||||||||||
|
|
|
| Tax |
| Labor |
| Civil |
| Tax |
| Labor |
| Civil | ||||||||||||||||
Balance at Beginning | 9,377,201 |
| 1,869,394 |
| 1,501,962 |
| 9,636,920 |
| 2,538,878 |
| 1,480,652 | |||||||||||||||||||
Recognition Net of Reversal(1) | 859,922 |
| 379,993 |
| 270,481 |
| 499,729 |
| 38,468 |
| 270,973 | |||||||||||||||||||
Inflation Adjustment |
| 383,264 |
| 106,499 |
| 67,517 |
| 281,733 |
| 99,561 |
| 60,467 | ||||||||||||||||||
Write-offs Due to Payment | (34,747) |
| (411,252) |
| (279,704) |
| (46,539) |
| (760,863) |
| (316,278) | |||||||||||||||||||
Others |
| - |
| - |
| (6,410) |
| - |
| - |
| - | ||||||||||||||||||
Balance at End |
| 10,585,640 |
| 1,944,634 |
| 1,553,846 |
| 10,371,843 |
| 1,916,044 |
| 1,495,814 | ||||||||||||||||||
Escrow Deposits - Other Receivables | 951,796 |
| 365,451 |
| 119,613 |
| 883,532 |
| 624,777 |
| 104,905 | |||||||||||||||||||
Escrow Deposits - Securities | 27,195 |
| 17,651 |
| 669 |
| 27,948 |
| 42,001 |
| 4,347 | |||||||||||||||||||
Total Escrow Deposits(2) | 978,991 |
| 383,102 |
| 120,282 |
| 911,480 |
| 666,778 |
| 109,252 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
68
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated | ||||||||||||||||
|
|
|
|
|
|
|
| 01/01 to |
|
|
|
|
| 01/01 to | ||||||||||||||||
|
|
|
|
|
|
|
| 06/30/2014 |
|
|
| 06/30/2013 | ||||||||||||||||||
|
|
|
| Tax |
| Labor |
| Civil |
| Tax |
| Labor |
| Civil | ||||||||||||||||
Balance at Beginning | 11,957,132 |
| 1,939,796 |
| 1,655,716 |
| 11,781,786 |
| 2,612,378 |
| 1,617,552 | |||||||||||||||||||
Recognition Net of Reversal(1) | 1,019,340 |
| 400,477 |
| 329,850 |
| 683,005 |
| 59,210 |
| 344,708 | |||||||||||||||||||
Inflation Adjustment |
| 471,620 |
| 110,643 |
| 74,763 |
| 337,224 |
| 103,371 |
| 67,092 | ||||||||||||||||||
Write-offs Due to Payment | (106,113) |
| (436,266) |
| (336,540) |
| (48,721) |
| (790,895) |
| (393,075) | |||||||||||||||||||
Change in Scope of Consolidation (3) | - |
| - |
| - |
| (158) |
| (426) |
| - | |||||||||||||||||||
Others |
| 226 |
| - |
| (6,410) |
| - |
| - |
| - | ||||||||||||||||||
Balance at End |
| 13,342,205 |
| 2,014,650 |
| 1,717,379 |
| 12,753,136 |
| 1,983,638 |
| 1,636,277 | ||||||||||||||||||
Escrow Deposits - Other Receivables | 2,236,656 |
| 371,539 |
| 124,886 |
| 2,028,430 |
| 640,708 |
| 114,864 | |||||||||||||||||||
Escrow Deposits - Securities | 27,569 |
| 17,651 |
| 669 |
| 28,890 |
| 42,001 |
| 4,347 | |||||||||||||||||||
Total Escrow Deposits(2) | 2,264,225 |
| 389,190 |
| 125,555 |
| 2,057,320 |
| 682,709 |
| 119,211 | |||||||||||||||||||
(1)Tax risks include the constitutions of tax provisions related to judicial and administrative proceedings and legal obligations, recorded tax expenses, other operating income and other operating expenses IR and CSLL. | ||||||||||||||||||||||||||||||
(2) Refers to the values of escrow deposits, limited to the amount of the provision for contingency and don't include the escrow deposit, for possible contingencies and / or remote and appeal deposits. | ||||||||||||||||||||||||||||||
(3) Change in shareholding company Webmotors S.A. , as corporate restructuring (Note 14 and 36.c). | ||||||||||||||||||||||||||||||
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d) Provisions for Contingent Civil, Labor, tax and Social Security |
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Banco Santander and its subsidiaries are involved in litigation and administrative tax, labor and civil proceedings arising in the normal course of its activities. | ||||||||||||||||||||||||||||||
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The provisions were constituted based on the nature, complexity and history of actions and evaluation of successful businesses based on the opinions of internal and external legal advisors. The Santander has the policy to accrue the full amount of stock whose loss valuation is probable. The legal obligation statutory tax and social security were fully recognized in the financial statements. | ||||||||||||||||||||||||||||||
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Management understands that the provisions recorded are sufficient to meet legal obligations and losses from lawsuits and administrative proceedings as follows:
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e) Lawsuits and Administrative Tax and Social Security |
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The Bank and its subsidiaries adhered in the year-end 2013 to the program of installments and cash payment of tax and social security debts established by Law 12.865/2013 (Articles 17 and 39). | ||||||||||||||||||||||||||||||
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Adhesion to the program included a lawsuit claiming the remoteness of the application of Law 9.718/1998 for Banco ABN Amro Real, succeeded by Bank. Referred lawsuit encompassed facts generators of social contributions to PIS and Cofins occurred period from September 2006 to April 2009, that process had unfavorable decision in federal court. The Bank and its subsidiaries follow discussing the application of the Law 9.718/1998. Other administrative and judicial proceedings were also included this program. | ||||||||||||||||||||||||||||||
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The accounting effects on December 31, 2013 in the case process of the tax and social security included in the form of cash payment, were registered in the moment at the of adhesion the program. As a result, contingent tax liabilities were paid in the amount of R$2,029,427 Bank and R$2,053,978 Consolidated, through payment (R$1,372,627 Bank and R$1,389,501 Consolidated) and the conversion income on deposits warranty (R$155,020 in the Bank and R$155,176 Consolidated). Was recorded in the income statement of 2013, in accounts of Other Income (Expenses), the gain of R$501,780 in the Bank and R$509,301 in Consolidated, before taxes. | ||||||||||||||||||||||||||||||
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The main legal and administrative proceedings related to legal obligations, tax and social security, are described below: | ||||||||||||||||||||||||||||||
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PIS and Cofins - R$8,405,172 Bank and R$9,744,163 Consolidated (06/30/2013 - R$8,500,489 Bank and R$9,544,096 Consolidated): the Bank Santander and its companies filed lawsuits seeking to invalidate the provisions of Law 9.718/1998, pursuant to which PIS and Cofins taxes must be levied on all revenues of legal entities. Prior to the enactment of such provisions, which have been overruled by recent "Superior Tribunal Federal" - "STF" "Supreme Court" decisions for nonfinancial institutions, PIS and Cofins were levied only on revenues from services and sale of goods. | ||||||||||||||||||||||||||||||
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Increase in CSLL Tax Rate - R$668,566 Bank and R$1,522,578 Consolidated (06/30/2013 - R$460,713 in the Bank and R$1,245,141 in the Consolidated): the Bank Santander and its companies filed lawsuits for an injunction to avoid the increase in the CSLL tax rate established by Executive Act 413/2008, subsequently codified into Law 11.727/2008. Financial institutions were formerly subject to a CSLL tax rate of 9%; however, Law 11.727/2008 established a 15% CSLL tax rate as from April 2008. Judicial proceedings are pending judgment. | ||||||||||||||||||||||||||||||
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Banco Santander and its subsidiaries are parties to judicial and administrative proceedings related to tax and social security discussions, which are classified based on the opinion of legal counsel as probable loss. | ||||||||||||||||||||||||||||||
69
The matters in dispute refer to the following: |
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CSLL - Equal Tax Treatment - R$3,636 Bank and R$52,661 Consolidated (06/30/2013 - R$3,545 Bank and R$51,804 Consolidated): the Banco Santander and its companies filed a lawsuit challenging the application of an increased CSLL rate of 18% for financial companies, applicable until 1998, compared to the CSLL rate of 8% for non-financial companies on the basis of the constitutional principle of equal tax treatment. | ||||||||||||||||||||||||||||
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Tax on Services for Financial Institutions (ISS) - R$607,201 Bank and R$631,036 Consolidated (06/30/2013 - R$474,644 Bank and R$495,089 Consolidated): the Banco Santander and its companies filed lawsuits, in administrative and judicial proceedings, some municipalities collection of ISS on certain revenues derived from transactions not usually classified as the rendering of services. | ||||||||||||||||||||||||||||
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Social Security Contribution (INSS) - R$363,504 Bank and R$382,120 Consolidated (06/30/2013 - R$327,710 Bank and R$347,608 Consolidated): the Banco Santander and its companies 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, have no nature of salary. | ||||||||||||||||||||||||||||
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f) Lawsuits and Administrative Proceedings - Labor Contingencies |
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These are lawsuits brought 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. | ||||||||||||||||||||||||||||
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For claims considered to be similar and usual, provisions are recognized based on the history of payments and successes. Claims that do not fit the previous criteria are accrued according to individual assessment performed, and provisions are based on the probable realization, the law and jurisprudence according to the assessment of success made by legal counsel. | ||||||||||||||||||||||||||||
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g) Lawsuits and Administrative Proceedings - Civil Contingencies |
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These contingencies are generally caused by: (1) Action 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) action deriving of financing agreements, (3) execution action; and (4) action indemnity by loss and damage. For civil actions 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 accrued according to individual assessment performed, and provisions are based on the probable realization, the law and jurisprudence according to the assessment of success made by legal counsel. | ||||||||||||||||||||||||||||
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The main processes classified as risk of loss likely are described below: |
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Lawsuits for Indemnity - seeking indemnity for property damage and/or emotional distress, 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 criterion are accrued according to the individual assessment made, and provisions are recognized based on the status of each lawsuit, law, and previous court decisions, according to the likely risk of payment, and the risk assessment made by the legal counsel. | ||||||||||||||||||||||||||||
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Economic Plans - efforts to recover actions with collective the deficient inflation adjustments in savings accounts arising from the Economic Plans (Bresser, Verão, Collor I and II). These refer to the lawsuits filed by savings account holders disputing the interest credited by the Banco Santander under such plans as the account holders considered that such legal amendments infringed on the rights acquired with regard to the application of the inflation indexes. Provisions are recorded based on the average of cases closed. | ||||||||||||||||||||||||||||
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Civil lawsuits that do not fit into the previous criterion are accrued according to the individual assessment made, and provisions are recognized based on the status of each lawsuit, law, and previous court decisions, according to likely risk of payment, and classification of the legal counsel. The Banco Santander is also a party in public class action suits on the same issue filed by consumer rights organizations, Public Prosecutor’s Offices and Public Defender’s Offices. In these cases, the provision is made only after the final unappealable sentence is handed down on the lawsuits, based on the individual execution orders. The STF decided against the bank’s. The STJ is still analyzing the subject and has already ordered the suspension of all the procedures except those that were not already decided in trial courts and those who have a final decision. There are decisions favorable to banks at the STF with regard to the economic phenomenon similar to that of savings accounts, as in the case of monetary restatement of time deposits - CDB and agreements (present value table). | ||||||||||||||||||||||||||||
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Moreover, there are precedents at the Supreme Court 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 of five years, but this decision has not been handed down on the lawsuits yet. Thus, with this decision, a majority stake, as was proposed 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 qualify in the public civil litigations, also is five years, counted from the final judgment of their sentence, that not handed down on the lawsuits yet. Banco Santander believes in the success of the arguments defended in these courts based on their content and the sound legal basis. | ||||||||||||||||||||||||||||
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70
h) Contingencies Civil, Labor, Tax, and Security Social Classified as Possible Loss Risk | ||||||||||||||||||||||||||||
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Refer to judicial and administrative proceedings involving tax, labor and civil matters assessed by legal counsels, as possible losses, which were not accounted for. | ||||||||||||||||||||||||||||
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The shares tax classification with possible loss, totaling R$9.7 billion, main processes being: | ||||||||||||||||||||||||||||
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Provisional Contribution on Financial Transactions (CPMF) on Customer Operations - 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 former Banco Santander Brasil S.A. The tax assessments refer to the collection of CPMF tax on transactions conducted by Santander DTVM in the management of its customers’ funds and clearing services provided by Banco to Santander DTVM in 2000, 2001, and the first two months of 2002. Based on the evaluation of legal counsel, the tax treatment was adequate. Santander DTVM succeeded in the second instance in its proceeding before the Board of Tax Appeals (CARF). However, this decision was reformed and a new appeal was introduced, which is subject to assessment. The Banco Santander was found liable for the tax assessment. Both decisions were appealed by the respective losing parties and the proceedings are pending final judgment of the respective appeals in a non-appealable proceeding before CARF. As of June 30, 2014, amounts related to these claims are approximately R$616 million each. | ||||||||||||||||||||||||||||
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IRPJ and CSLL on Reimbursement Arising from Contractual Guarantees - the Federal Revenue Service of Brazil issued infraction notices against Banco Santander with respect to the collection of IRPJ and CSLL taxes for tax years 2002 to 2006 on amounts reimbursed by the previous controlling shareholder of successful banking institutions by Banco Santander as reimbursement obligations for payments made by the Bank and its controlled entities with liabilities arising from the activities carried out by these institutions when the previous controlling shareholder still maintained control of such group. The Federal Revenue Service deemed the amounts to be “taxable income” rather than reimbursements. In November 2011, the CARF dismissed the administrative proceeding in respect to the base period of 2002, fully canceling the record of infraction and was terminated in February 2012 during the term of the appeal. Also we are successful with the 2003 base period. In relation to the period 2004, we had new decision favorable to CARF, which can still be appealed. Proceedings related to tax years 2005 to 2006 are ongoing. On June 30, 2014 the amounts related to this period are approximately R$145 million. | ||||||||||||||||||||||||||||
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Credit Losses - the Bank and its companies challenged the tax assessments issued by the Federal Revenue Services claiming improper deduction of losses on loans on Income Tax of Legal Entities IRPJ and CSLL bases for allegedly failing to meet the relevant requirements under applicable law. As of June 30, 2014 the amount related to this challenge is approximately R$651 million. | ||||||||||||||||||||||||||||
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INSS on Profits or Results (PLR) - the Bank and the subsidiaries are involved in several legal and administrative proceedings against the tax authorities in connection with the taxation for social security purposes of certain items which are not considered to be employee remuneration. As of June 30, 2014 the amounts related to these proceedings totaled approximately R$1,106 million. | ||||||||||||||||||||||||||||
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IRPJ and CSLL - Capital Gain - the Federal Revenue Service of Brazil issued infraction notices against Zurich Santander Brasil Seguros e Previdência S.A. successor company ABN AMRO Brasil Dois Participações S.A. (AAB Dois Par) charging income Tax and Social Contribution to related base year 2005, claiming that capital gain in sales shares of Real Seguros S.A and Real Vida Previdência S.A. by AAB Dois Par should be taxed an rate of 34% instead 15%. The assessment was contested administratively based on understanding tax treatment adopted at the transaction was in compliance and capital gain was taxed properly. We partially favor the decision by CARF for give voluntary part appeal to delete the fine craft and interest on this fine. This decision may be appealed. The Banco Santander is responsible for any adverse outcome in this process as Former Controller of Stockholders Zurich Santander Brasil Seguros e Previdência S.A. On June, 30, 2014, the value was approximately R$239 million. | ||||||||||||||||||||||||||||
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The labor claims with classification of possible loss totaled R$0.1 billion, excluding the process below: | ||||||||||||||||||||||||||||
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Semiannual Bonus or PLR -a labor lawsuit relating to the payment of a semiannual bonus or, alternatively, profit sharing, to retired employees from the former Banco do Estado de São Paulo S.A. - Banespa, that had been hired up to May 22, 1975, filed as Banespa’s Retirees Association. This lawsuit was dismissed against the Bank by the Superior Labor Court. The STF rejected the extraordinary appeal of the Bank by a monocratic decision maintaining the earlier condemnation. Santander brought Regimental Appeal which awaits decision by the STF. The Regimental Appeal is an internal appeal filed in the STF itself, 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 materials of the extraordinary appeal of the Bank now proceed to the Supreme Court for decision on overall impact and judgment. The amount related to this claim is not disclosed due to the current stage of the lawsuit and the possible impact such disclosure may have on the progress of the claim. | ||||||||||||||||||||||||||||
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The liabilities related to civil lawsuits with possible loss totaled R$0.6 billion. | ||||||||||||||||||||||||||||
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71
i) Other Lawsuits Under the Responsibility of Former Controlling Stockholders |
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Refer to actions of tax, labor and civil, in the amounts of R$734,824, R$3,272 and R$3,053 (06/30/2013 - R$832,241, R$5,663 and R$3,515) in the Bank and R$829,625, R$3,272 and R$3,053 (06/30/2013 - R$999,113, R$5,663 and R$3,515) in the Consolidated, respectively, recorded in other liabilities - tax and social security contributions (Note 18) and other liabilities - others (Note 21) the responsibility of the former controlling banks and acquired companies. Based on contracts signed, these actions have guaranteed reimbursement for part of former controllers, whose respective duties were recorded in other receivables - others (Note 12). | ||||||||||||||||||||||||||||||||||||
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23. Stockholders’ Equity |
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a) Capital |
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According to the bylaws, Banco Santander's capital may be increased to the limit of authorized capital, regardless of statutory, by resolution of the Board of Directors and through the issuance of up to 500 billion new shares, within the limits legally established as the number of preferred shares. Any increase in capital in excess of this limit will require the approval of stockholders. | ||||||||||||||||||||||||||||||||||||
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The paid-in capital is represented as follows: |
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| Shares in Thousands | ||||||||||||||||||||||
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| 06/30/2014 |
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| 06/30/2013 | ||||||||||||||||||||||||
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| Common |
| Preferred |
| Total |
| Common |
| Preferred |
| Total | ||||||||||||||||||||||
Brazilian Residents |
| 336,358 |
| 363,154 |
| 699,512 |
| 346,006 |
| 372,775 |
| 718,781 | ||||||||||||||||||||||||
Foreign Residents |
| 3,533,492 |
| 3,367,836 |
| 6,901,328 |
| 3,523,844 |
| 3,358,216 |
| 6,882,060 | ||||||||||||||||||||||||
Total |
| 3,869,850 |
| 3,730,990 |
| 7,600,840 |
| 3,869,850 |
| 3,730,991 |
| 7,600,841 | ||||||||||||||||||||||||
(-) Treasury Shares |
| (25,346) |
| (25,346) |
| (50,692) |
| (9,960) |
| (9,960) |
| (19,920) | ||||||||||||||||||||||||
Total Outstanding |
| 3,844,504 |
| 3,705,644 |
| 7,550,148 |
| 3,859,890 |
| 3,721,031 |
| 7,580,921 | ||||||||||||||||||||||||
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To reflect the impact of the subsidy Program and Bonus and Gruping of Shares in the context of the Optimization Plan Reference Equity (Note 23.f) approved on Shareholders’ Meeting on March 18, 2014 and effective on June 2, 2014, all information relating the shares have been adjusted retrospectively for all periods presented. | ||||||||||||||||||||||||||||||||||||
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b) Dividends and Interest on Capital |
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In accordance with the Bank’s bylaws, stockholders 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 10% higher than those paid on common shares, and in the capital reimbursement, without premium, in the event of liquidation of the Bank. | ||||||||||||||||||||||||||||||||||||
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Dividends have been and continue to be calculated and paid in accordance with the Corporations Act. | ||||||||||||||||||||||||||||||||||||
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Before the annual shareholders meeting, the Board of Directors may establish the amount of dividends out of earnings based on (i) balance sheets or earning reserves from the last balance sheet; or (ii) balance sheets issued in the period shorter than 6 months, in which case the payment of dividends shall not exceed the amount of capital reserves. These payments are fully allocated to mandatory dividends. | ||||||||||||||||||||||||||||||||||||
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| 06/30/2014 | ||||||||||||||||||||||
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| In Thousands |
| Brazilian real per Thousand Shares/Units | |||||||||||||||||||||||||||||
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| of Brazilian real |
| Common |
| Preferred |
| Units | |||||||||||||||||||||||||
Interim Dividends (1) (3) |
|
|
| 99,807 |
| 12.6008 |
| 13.8609 |
| 26.4617 | ||||||||||||||||||||||||||
Intercalary Dividends (1) (3) |
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| 120,193 |
| 15.1745 |
| 16.6919 |
| 31.8664 | ||||||||||||||||||||||||||
Intercalary Dividends (2) (3) |
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|
| 400,000 |
| 50.5005 |
| 55.5505 |
| 106.0510 | ||||||||||||||||||||||||||
Total |
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| 620,000 |
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(1) Established by the Board of Directors in March 2014. |
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(2) Established by the Board of Directors in June 2014. |
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(3) The amount of intercalary dividends will be fully attributed to mandatory dividends for the year 2014 and will be paid from August 28, 2014, without any monetary compensation. | ||||||||||||||||||||||||||||||||||||
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| 06/30/2013 | ||||||||||||||||||||||
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| In Thousands |
| Brazilian real per Thousand Shares/Units | |||||||||||||||||||||||||||||
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| of Brazilian real |
| Common |
| Preferred |
| Units | |||||||||||||||||||||||||
Interest on Capital (1) (3) |
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| 300,000 |
| 37.7153 |
| 41.4868 |
| 79.2021 | ||||||||||||||||||||||||||
Intermediate Dividends(2) (4) |
|
|
| 650,000 |
| 81.7268 |
| 89.8995 |
| 171.6263 | ||||||||||||||||||||||||||
Total |
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|
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| 950,000 |
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(1) Established by the Board of Directors in March 2013, common shares - R$32.0580, preferred shares - R$35.2638 and Units - R$67.3217, net of taxes. | ||||||||||||||||||||||||||||||||||||
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(2) Established by the Board of Directors in June 2013. |
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(3) The amount of interest on capital were fully attributed to the mandatory dividend for the year 2013 and were paid in August 29, 2013, without any monetary compensation. | ||||||||||||||||||||||||||||||||||||
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(4) The amount of interim dividends were fully attributed to complementary dividends for the year 2013 and were paid on August 29, 2013 without any monetary compensation. | ||||||||||||||||||||||||||||||||||||
72
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c) Dividend Equalization Reserve |
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After the allocation of dividends, the balance if any, may, upon proposal of the Executive Board and approved by the Board of Directors, be aimed the reserve for dividend equalization, which will be limited to 50% of the share capital. This reserve is intended to guarantee funds for the payment of dividends, including in the form of interest on capital, or interim, to maintain the flow of compensation to shareholders. | ||||||||||||||||||||||||||||
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d) Treasury Shares |
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At the meeting held on July 29, 2013, the Board of Directors decided to approve the renewal, for one more year, the buyback program certificate of deposit of shares (Units) approved on August 24, 2013 up to August 24, 2014. | ||||||||||||||||||||||||||||
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The current Buyback Program aims to: (1) maximize value creations for shareholders through efficient management of capital structure; (2) facilitate the payment of management, managerial employees and other employees of the Bank and companies under its control, in line with the Resolution of the CMN 3,921, of November 25, 2010, pursuant to the Plan of Long-Term Incentive and (3) facilitate the management of risk arising the services rendered, by the Bank, of market maker in Brazil of certain index funds, where the Units are included in the theoretical portfolio of reference such funds in accordance with applicable rules. Part of the Units repurchased will be used by the Bank to hedge against price fluctuation of securities that make up the benchmark, and should be bought and sold in accordance with the risk management policy of the Bank. | ||||||||||||||||||||||||||||
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The Buyback Program will cover the procurement of over to 76,008,403 Units, representing 4,180,462,165 common shares and (equivalent to 76,008,403 common shares after the bonus and gruping of shares) 3,800,420,150 preferred shares (equivalent to 76,008,403 preferred shares after the bonus and gruping of shares), or ADRs (American Depositary Receipts) by the Bank, corresponding on June, 30 2013 approximately 2% of the total share capital of the Bank. | ||||||||||||||||||||||||||||
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In the first half of 2014, 4.417.000 Units were acquired, 2.433.553 Units paid as Bonus and Long-Term Incentive Plan - Local treasury shares. The balance accumulated of treasury shares on June 30, 2014, amounting to 18.674.191 Units (06/30/2013 - 8,226,716 Units) equivalent to R$192,397 (06/30/2013 - R$126,394). The minimum, weighted average and maximum cost per Unit of the total number of treasury shares is, respectively, R$11.01, R$14.31 and R$18.52. In the first half of 2014, was acquired 4.791.874 ADRs. The balance accumulated of ADRs acquired and held in treasury amounting 11.540.221 ADRs, in the current amount of R$159,576 (06/30/2013 - R$39,238). The minimum, weighted average and maximum cost per ADR of the total number of treasury shares is, respectively, US$4.61, US$6.27 and US$10.21. The market value of these shares on June 30, 2014 was R$15.12 per Unit and US$6.92 per ADR. In the first half of 2014, due to the Optimization Plan PR, were registered amount of R$20 issuance cost, totaling R$351,993 (06/30/2013 - R$165,632) of treasury shares.
| ||||||||||||||||||||||||||||
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Additionally, during the first half ended in June 30, 2014, treasury shares were traded, that resulted in a loss of R$5,360 (06/30/2013 - R$676) recorded directly in equity in capital reserves. | ||||||||||||||||||||||||||||
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| ||||||||||||||
e) Consolidated Stockholders’ Equity - Unrealized Results |
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The consolidated stockholders’ equity is reduced mainly to unrealized results of R$5,157 (06/30/2013 - R$4,126). In the first half of 2014, results were realized in the amount of R$5,329 (2013 - R$341,954), represented mainly by trading with third parties NTN-C and part of NTN-F, related to the sale made by Banco Santander to Santander Leasing (Note 6. a III) recorded previously as unrealized results (2012 - R$514,532). | ||||||||||||||||||||||||||||
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f) Plan to Optimize the Capital Structure |
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On September 26, 2013, the Company disclosed a Material Fact announcing that, in order to optimize its capital structure, the Board of Directors submitted a proposal to optimize the composition of Banco Santander’s regulatory capital to the shareholders for their approval ("PR Optimization Plan"). The aim is to establish a more efficient capital structure, consistent with the new prudent capital rules and aligned with Banco Santander’s business plan and asset growth. The PR Optimization Plan has the following items: (i) the redistribution of equity to the shareholders of Banco Santander in the total amount of R$6,000,000, with no reduction in the number of shares; (ii) the issuance abroad of capital instruments to compose Tier I and Tier II of Banco Santander’s regulatory capital and; (iii) a bonus share program and an adjustment in the composition of the Units, followed by a reverse share split (inplit), with the purpose of eliminating trading in cents. | ||||||||||||||||||||||||||||
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Equity Distributions |
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On November 1st, 2013, the proposals for return of funds to shareholders was approved on Shareholders’ Meeting. In January 2014, conditions for effective recovery of resources (during the period of opposition from unsecured creditors, approval by the Bacen and filing the minutes of the meeting at the Junta Comercial do Estado de São Paulo - JUCESP). The Equity Distributions to shareholders occurred on January 29, 2014, and the Bank's shares and Units have been traded ex-rights to the Equity Distributions since January 15, 2014. | ||||||||||||||||||||||||||||
73
Issuance Notes | ||||||||||||||
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On January 14, 2014 the Board of Directors approved the issuance of notes outside Brazil, in dolars, amounting to R$6,000,000. The issuance of Notes held on January 29, 2014 having been fully paid by the shareholders of the Bank. | ||||||||||||||
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The specific characteristics of the Notes issued to compose the Tier I are: (a) Notional: US$1,247,713, equivalent to R$3,000,000, (b) Interest Rate: 7.375% p.a. (c) Maturity: The Tier I Notes shall be perpetual; (d) Frequency of interest payment: interest will be paid quarterly from April 29, 2014; (e) Discretion: Banco Santander can cancel the distribution of interest at any time, for an unlimited period, with no accumulation rights and this suspension shall not be considered as a default event; (f) Subordination: in the case of insolvency, the Notes' financial settlement is subordinated to all Tier II capital instruments. The specific characteristics of the Notes issued to form the Tier II are: (a) Notional: US$1,247,713, equivalent to R$3,000,000 (b) Interest Rate: 6.0% p.a. (c) Maturity: the Tier II Notes will mature on January 29, 2024, and (d) Frequency of interest payment: interest payable semi-annually from July 29, 2014. | ||||||||||||||
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On April 15, 2014, the Bacen approved the issued notes to compose the Tier I and Tier II of Bank’s regulatory capital since the issuance date. | ||||||||||||||
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Bonus and Gruping of Shares | ||||||||||||||
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With the purposes of eliminating the trading in cents of SANB3 (common) and SANB4 (preferred) shares, increasing liquidity and reducing costs of transaction thereof, on March 18, 2014, our shareholders, in the extraordinary general meeting approved, (i) a bonus share of 19,002,100,957 preferred shares to our shareholders, at the ratio of 0.047619048 preferred shares for each common share (SANB3) or preferred share (SANB4), which results in bonus share of five (5) preferred shares for each Unit (SANB11), through the capitalization of reserves in the amount of R$171,799; and (ii) share reverse split (inplit) of the totality of our common shares and preferred shares in a ratio of 1:55, so that each fifty-five (55) common shares and fifty-five (55) preferred shares will henceforth correspond to one (1) common share and one (1) preferred share, respectively. As a result, each Unit (SANB11) will be comprised of one common share and one preferred share. | ||||||||||||||
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On April 23, 2014 the Company published Notice to Shareholders, in order to inform to the shareholders that the Bacen ratified, on April 22, 2014, the minutes of the EGM held on March 18, 2014, which approved a bonus share program and an adjustment in the composition of the Units, which implementation occurred on June 2, 2014. | ||||||||||||||
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Voluntary Offer of Shares | ||||||||||||||
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On April 29, 2014 the Company published Material Fact in order to inform that it was informed by its indirect controlling shareholder, Banco Santander, S.A., that the latter intends to launch a voluntary offer in Brazil and United States for acquisition of up to the totality of the shares of Santander Brazil that are not held by Santander Group, which represent approximately 25% of Santander Brasil’s share capital, with payment in shares of Santander Spain. As a result of the Transaction, Santander Brasil will continue to be a listed company, although it will change from the Level 2 (Nivel 2) of Corporate Governance of BM&FBovespa to the traditional segment of BM&FBovespa. | ||||||||||||||
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On June 9, 2014, it was held EGM, which resolved on the following Agenda: (a) the exit of the Company from the special listing segment of BM&FBOVESPA, denominated Level 2 of Corporate Governance; and (b) the selection of the specialized firm NM Rothschild & Sons (Brazil) Ltda., to be hired to prepare a valuation report, called a “laudo”, based on the Company’s economic value, for purposes of the Exchange Offer and the consequent exit from Level 2. | ||||||||||||||
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On June 13, 2014, the Company published Material Fact, in order to inform that the valuation report, called a “laudo”, prepared by N M Rothschild & Sons (Brasil) Ltda., dated June 10, 2014, to be used for purposes of the voluntary exchange offer of shares certificates, common or preferred shares issued by the Company for Brazilian Depositary Receipts or American Depositary Shares representing Banco Santander, S.A. ordinary shares, as previously detailed in the aforementioned Notice to the Market dated April 29, 2014, was duly filed on the date hereof by the Company with (i) the CVM; (ii) the BM&FBOVESPA S.A.; and (iii) the U.S. Securities and Exchange Commission - SEC. The Company informed as well, based on the information gave by Santander Spain to Santander Brasil, that an application for registration of the Exchange Offer was duly filed by Santander Spain with the CVM on the date hereof, pursuant to the terms of the aforementioned Instruction CVM 361/02. | ||||||||||||||
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24. Operational Ratios | ||||||||||||||
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Financial institutions are required to maintain Regulatory Capital, Tier I and Common Equity Tier I with their risk activities, higher to the minimum requirement of the Regulatory Capital Requirement, represented by the sum of the partial credit risk, market risk and operational risk. | ||||||||||||||
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In July 2008 came into force the rules on regulatory capital measurement by the Standardized Approach of Basel II. These rules were repealed by Resolution 4.192 and 4.193 which took effect from October 2013, establishing the model for calculating the minimum Regulatory Capital requirements, Tier I and Common Equity Tier I. These resolution states that the composition of the Regulatory Capital is done through equity, subordinated debt, hybrid capital instruments. | ||||||||||||||
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As established Resolution 4.193/2013 the minimum Regulatory Capital requirements remains at 11% until December 2015, the Tier I requirement is 5.5% and Common Equity Tier I is 4.5% from October 2013. | ||||||||||||||
74
Index is calculated on a consolidated basis, as shown below: |
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| Financial Consolidated(1) | ||||||||||||||||||
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| 06/30/2014 |
| 06/30/2013 | ||||||||||||||||
Tier I Regulatory Capital |
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|
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| 58,802,433 |
| 64,536,508 | ||||||||||||||||||||
Principal Capital |
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| 56,013,944 |
| 64,536,508 | ||||||||||||||||||
Supplementary Capital |
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|
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| 2,788,489 |
| - | ||||||||||||||||||||
Tier II Regulatory Capital |
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|
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| 5,576,936 |
| 3,945,342 | ||||||||||||||||||||
Regulatory Capital (Tier I and II) |
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|
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| 64,379,369 |
| 68,481,850 | ||||||||||||||||||||
Required Regulatory Capital |
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| 39,573,692 |
| 35,001,582 | ||||||||||||||||||||
Portion of Credit Risk(2) |
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|
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| 34,304,465 |
| 31,520,133 | ||||||||||||||||||||
Market Risk Portions(3) |
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|
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| 3,561,999 |
| 1,752,212 | ||||||||||||||||||||
Operational Risk Portion |
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|
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| 1,707,228 |
| 1,729,237 | ||||||||||||||||||||
Basel I Ratio |
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| 16.3 |
| - | ||||||||||||||||||
Basel Principal Capital |
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| 15,6 |
| - | ||||||||||||||||||||
Basel |
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| 17.9 |
| 21.5 | ||||||||||||||||||
(1) Amounts calculated based on the consolidated information provided by the financial institutions (Financial Conglomerate). | ||||||||||||||||||||||||||||||
(2) To calculate the capital allocation for credit risk were considered modifications and inclusions of Bacen Circular 3.644 of March 4, 2013, which revoked Bacen Circular 3.563/2011. | ||||||||||||||||||||||||||||||
(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). | ||||||||||||||||||||||||||||||
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Banco Santander, quarterly disclose information relating to risk management and Required Regulatory Capital (PRE). A report with further details of the structure and methodology will be disclosed at the website www.santander.com.br/ri. | ||||||||||||||||||||||||||||||
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Financial institutions are required to maintain investments in permanent assets compatible with adjusted regulatory capital. Funds invested in permanent assets, calculated on a consolidated basis, are limited to 50% of adjusted regulatory capital, as per prevailing regulation. Banco Santander classifies for said index. | ||||||||||||||||||||||||||||||
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25. Related Parties | ||||||||||||||||||||||||||||||
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a) Key Management Personnel Compensation | ||||||||||||||||||||||||||||||
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The Board of Directors' meeting held on February 26, 2014, was approved in accordance with the Compensation and Appointment Committee the global compensation proposal of directors (Board of Directors and Executive Officers) for the year 2014, amounting to R$300,000, covering fixed remuneration, variable and equity-based and other benefits. The proposals were the subject of deliberation in the extraordinary stockholders' meeting held on April 30, 2014. | ||||||||||||||||||||||||||||||
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a.1) Long Term Benefits | ||||||||||||||||||||||||||||||
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The Banco Santander, likewise Banco Santander Spain and other companies controlled by Santander Group, develops long-term compensation programs linked to shares' market value, according to the accomplishment of some goals (Note 34.f). | ||||||||||||||||||||||||||||||
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a.2) Short Term Benefits | ||||||||||||||||||||||||||||||
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The table below shows the salary of Board of Directors and Executive Board: | ||||||||||||||||||||||||||||||
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| 01/01 to |
| 01/01 to | ||||||||||||||||
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| 06/30/2014 | 06/30/2013 | |||||||||||||||||
Fixed Compensation |
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|
|
|
|
|
|
|
| 23,472 |
| 22,102 | ||||||||||||||||||
Variable Compensation |
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|
|
|
|
|
| 57,100 |
| 54,912 | ||||||||||||||||||||
Others |
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|
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|
|
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| 7,254 |
| 6,040 | ||||||||||||||||||
Total Short-Term Benefits |
|
|
|
|
|
|
| 87,826 |
| 83,054 | ||||||||||||||||||||
Shares Based Payments(1) |
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|
|
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|
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| 15,261 |
| 14,411 | ||||||||||||||||||||
Total Long-Term Benefits |
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|
|
|
|
|
| 15,261 |
| 14,411 | ||||||||||||||||||||
Total(2) |
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|
|
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|
|
|
| 103,087 |
| 97,465 | ||||||||||||||||||
(1) Refers to the amount paid by Banco Santander to their Managers for positions they hold at Banco Santander and other companies in the Conglomerate Santander. In the first half of 2013, were paid to the Directors of Santander Brasil Asset the amount of R$2,115 excluding charges (Note 36.a). | ||||||||||||||||||||||||||||||
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Additionally, in the first half of 2014, charges were collected on management compensation in the amount of R$14,187 (2013 - R$19,912). | ||||||||||||||||||||||||||||||
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b) Contract Termination | ||||||||||||||||||||||||||||||
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The termination of the employment relationship of managers for non-fulfillment of obligations or voluntarily does not entitle executives to any financial compensation. | ||||||||||||||||||||||||||||||
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c) Lending Operations | ||||||||||||||||||||||||||||||
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Under current legislation, loans or advances are not granted to: |
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I - officers, members of Board of Directors and Audit Committee as well as their spouses and relatives up to the second degree; | ||||||||||||||||||||||||||||||
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II - individuals or legal entities of Banco Santander, which hold more than 10% of the share capital; | ||||||||||||||||||||||||||||||
75
III - legal entities which hold more than 10% of the share capital, Banco Santander and its subsidiaries; | ||||||||||||
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IV - legal entities which hold more than 10% of the share capital, any of the directors or members of the Board of Directors and Audit Committee or management's own financial institution, as well as their spouses or relatives up to the second degree. | ||||||||||||
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d) Ownership Interest |
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The table below shows the direct interest (common and preferred shares): | ||||||||||||
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| 06/30/2014 | ||||||||||
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| Common Shares |
|
|
| Preferred Shares |
| Total |
|
| ||
Stockholders' |
| Quantity |
| (%) |
| Quantity |
| (%) |
| Quantity |
| (%) |
|
| (In Thousand of Shares, Except Percentages) |
|
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|
| ||||||
Grupo Empresarial Santander, S.L. (GES)(1) | 1,107,673 |
| 28.6% |
| 1,019,645 |
| 27.3% |
| 2,127,318 |
| 28.0% | |
Sterrebeeck B.V.(1) |
| 1,809,583 |
| 46.8% |
| 1,733,644 |
| 46.5% |
| 3,543,227 |
| 46.6% |
Santander Insurance Holding, S.L. (SIH)(1) | 3,758 |
| 0.1% |
| 179 |
| 0.0% |
| 3,937 |
| 0.1% | |
Qatar Holding, LLC (Qatar Holding) | 196,462 |
| 5.1% |
| 196,462 |
| 5.3% |
| 392,924 |
| 5.2% | |
Employees |
| 2,598 |
| 0.1% |
| 2,621 |
| 0.1% |
| 5,219 |
| 0.1% |
Members of the Board of Directors | (*) |
| (*) |
| (*) |
| (*) |
| (*) |
| (*) | |
Members of the Executive Board | (*) |
| (*) |
| (*) |
| (*) |
| (*) |
| (*) | |
Others |
| 724,430 |
| 18.6% |
| 753,093 |
| 20.1% |
| 1,477,523 |
| 19.3% |
Total Outstanding |
| 3,844,504 |
| 99.3% |
| 3,705,644 |
| 99.3% |
| 7,550,148 |
| 99.3% |
Treasury Shares |
| 25,346 |
| 0.7% |
| 25,346 |
| 0.7% |
| 50,692 |
| 0.7% |
Total |
| 3,869,850 |
| 100.0% |
| 3,730,990 |
| 100.0% |
| 7,600,840 |
| 100.0% |
Free Float (2) |
| 923,490 |
| 23.9% |
| 952,176 |
| 25.5% |
| 1,875,666 |
| 24.7% |
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| 06/30/2013 | ||||||||||
|
| Common Shares |
| Preferred Shares |
| Total |
|
| ||||
Stockholders' |
| Quantity |
| (%) |
| Quantity |
| (%) |
| Quantity |
| (%) |
|
| (In Thousand of Shares, Except Percentages) |
|
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|
| ||||||
GES(1) |
| 1,120,122 |
| 28.9% |
| 1,032,121 |
| 27.6% |
| 2,152,243 |
| 28.3% |
Sterrebeeck B.V.(1) |
| 1,809,583 |
| 46.8% |
| 1,733,643 |
| 46.4% |
| 3,543,226 |
| 46.6% |
SIH(1) |
| 3,758 |
| 0.1% |
| 179 |
| 0.0% |
| 3,937 |
| 0.1% |
Employees |
| 3,119 |
| 0.1% |
| 3,140 |
| 0.1% |
| 6,259 |
| 0.1% |
Members of the Board of Directors | (*) |
| (*) |
| (*) |
| (*) |
| (*) |
| (*) | |
Members of the Executive Board | (*) |
| (*) |
| (*) |
| (*) |
| (*) |
| (*) | |
Others |
| 923,308 |
| 23.9% |
| 951,948 |
| 25.6% |
| 1,875,256 |
| 24.7% |
Total Outstanding |
| 3,859,890 |
| 99.8% |
| 3,721,031 |
| 99.7% |
| 7,580,921 |
| 99.8% |
Treasury Shares |
| 9,960 |
| 0.2% |
| 9,960 |
| 0.3% |
| 19,920 |
| 0.2% |
Total |
| 3,869,850 |
| 100.0% |
| 3,730,991 |
| 100.0% |
| 7,600,841 |
| 100.0% |
(1)Companies of the Santander Spain Group. |
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(2) Composed of Employees, Qatar Holding and Others. |
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(*) None of the members of the Board of Directors and the Executive Board holds 1.0% or more of any class of shares. | ||||||||||||
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d.1)Exercise of the Exchange Rights by the Qatar Holding Luxembourg II S.Á R.L. (QHL) | ||||||||||||
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On October 29, 2013, QHL exercised its exchange rights related to the mandatorily exchangeable bonds in the total amount of US$2,718,800, acquired pursuant to the purchase agreement, dated October 28, 2010, entered into between Banco Santander Spain, as issuer, and QHL, as purchaser. | ||||||||||||
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As a result of QHL’s exercise of its exchange rights, on November 7, 2013, Qatar Holding received from Banco Santander Spain 190,030,195 ADR issued by Banco Santander. Therefore, and considering the 6,431,575 ADR issued by Banco Santander currently held directly or indirectly by Qatar Holding up to November 7, 2013, QHL (together with its controlling shareholders, controlled and commonly controlled entities) holds a total of 196,461,770 ADR of Banco Santander as of the date thereof, which represents 5.08% of the common shares and 5.28% of the preferred shares of the Bank. | ||||||||||||
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The exercise exchange rights by QHL, not imply an increase in the Banco Santander's free float. | ||||||||||||
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76
e) Related-Party Transactions |
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Santander has a documented policy relating to related-party transactions approved by the Board of Directors, which is intended to ensure that all transactions covered by the policy are conducted based on the interests of Banco Santander and its shareholders. The policy defines the power 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.
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The operations and remuneration of services with related parties are made in the ordinary course of business and under reciprocal conditions, including interest rates, terms and guarantees, and involve no greater risk than the normal billing or have other disadvantages. | |||||||||||||||||||||||||||||||
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The main transactions and balance are as follows: |
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| Bank | |||||||||||||||||||
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| Assets |
| Income |
| Assets |
| Income | |||||||||||||||||
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| (Liabilities) | (Expenses) | (Liabilities) | (Expenses) | ||||||||||||||||||||
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| 01/01 to |
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| 01/01 to | |||||||||||||||||
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| 06/30/2014 | 06/30/2014 |
| 06/30/2013 |
| 06/30/2013 | ||||||||||||||||||
Cash |
|
|
|
|
| 641,791 |
| - |
| 95,599 |
| - | |||||||||||||||||||
Banco Santander Espanha(2) |
|
|
| 638,427 |
| - |
| 94,956 |
| - | |||||||||||||||||||||
Banco Santander Totta, S.A.(4) |
|
|
| 3,364 |
| - |
| 643 |
| - | |||||||||||||||||||||
Interbank Investments |
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|
|
| 36,944,266 |
| 1,389,825 |
| 40,036,838 |
| 1,373,763 | ||||||||||||||||||||
Aymoré CFI(3) |
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|
|
|
| 28,072,616 |
| 1,332,216 |
| 30,800,881 |
| 1,342,481 | |||||||||||||||||||
Banco Santander Espanha(1) (2) |
|
|
| 8,067,306 |
| 8,801 |
| 8,336,449 |
| 7,937 | |||||||||||||||||||||
CFI RCI Brasil (5) |
|
|
|
|
| 804,344 |
| 48,808 |
| 899,508 |
| 23,345 | |||||||||||||||||||
Securities |
|
|
|
|
| 45,197,747 |
| 2,007,106 |
| 37,000,730 |
| 1,233,534 | |||||||||||||||||||
Santander Leasing(3) |
|
|
| 45,197,747 |
| 2,007,106 |
| 37,000,730 |
| 1,233,534 | |||||||||||||||||||||
Derivatives Financial Instruments - Net |
| 57,119 |
| (95,564) |
| (248,926) |
| 357,649 | |||||||||||||||||||||||
Santander Benelux, S.A., N.V. (Santander Benelux) (4) | (9,821) |
| (118,895) |
| (115,244) |
| 228,215 | ||||||||||||||||||||||||
Banco Bandepe(3) |
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|
|
|
| - |
| (111) |
| - |
| - | |||||||||||||||||||
Real Fundo de Investimento Multimercado Santillana Crédito Privado (Fundo de Investimento Santillana) (4) | (86,928) |
| (13,221) |
| (193,641) |
| 10,378 | ||||||||||||||||||||||||
Abbey National Treasury Services Plc (Abbey National Treasury)(4) | 16,404 |
| 56,697 |
| (19,975) |
| 44,723 | ||||||||||||||||||||||||
Banco Santander Espanha(2) |
|
|
| 53,427 |
| 40,352 |
| 28,406 |
| 243 | |||||||||||||||||||||
Santander FI Amazonas(3) |
|
|
| (4,634) |
| (3,839) |
| (35,563) |
| (10,900) | |||||||||||||||||||||
Santander Paraty(3) |
|
|
|
|
| (24,922) |
| - |
| - |
| - | |||||||||||||||||||
Santander FI Diamantina(3) |
|
|
| 113,224 |
| (56,562) |
| 86,608 |
| 85,014 | |||||||||||||||||||||
Santander Leasing(3) |
|
|
| 369 |
| 15 |
| 483 |
| (24) | |||||||||||||||||||||
Credit Operations |
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|
|
|
| 14,953 |
| 816 |
| 38,074 |
| 1,220 | |||||||||||||||||||
Cibrasec(5) |
|
|
|
|
| 14,953 |
| 816 |
| 38,074 |
| 1,220 | |||||||||||||||||||
Dividends and Bonuses Receivables |
| - |
| 87,052 |
| - |
| 172,978 | |||||||||||||||||||||||
Banco Bandepe (3) |
|
|
|
|
| - |
| 35,700 |
| - |
| 59,800 | |||||||||||||||||||
Santander Leasing(3) |
|
|
| - |
| 48,252 |
| - |
| 106,468 | |||||||||||||||||||||
Santander Securities Services Brasil DTVM S.A.(3) (9) | - |
| - |
| - |
| 610 | ||||||||||||||||||||||||
Santander CCVM(3) |
|
|
|
|
| - |
| 3,100 |
| - |
| 6,100 | |||||||||||||||||||
Trading Account |
|
|
|
|
| - |
| 316 |
| 177,216 |
| 2,490 | |||||||||||||||||||
Santander Benelux(4) |
|
|
| - |
| 1 |
| 5,761 |
| 140 | |||||||||||||||||||||
Abbey National Treasury(4) |
|
|
| - |
| 4 |
| - |
| - | |||||||||||||||||||||
Banco Santander Espanha(2) |
|
|
| - |
| 311 |
| 171,455 |
| 2,350 | |||||||||||||||||||||
Foreign Exchange Portfolio - Net |
|
|
| (7,146) |
| 19,975 |
| (201,610) |
| (81,336) | |||||||||||||||||||||
Banco Santander Espanha(2) |
|
|
| (15,439) |
| 37,455 |
| (201,610) |
| (81,336) | |||||||||||||||||||||
Santander Benelux(4) |
|
|
| 8,293 |
| (17,480) |
| - |
| - | |||||||||||||||||||||
77
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| Bank | ||
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| Assets |
| Income |
| Assets |
| Income |
|
|
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|
|
| (Liabilities) | (Expenses) | (Liabilities) | (Expenses) | |||
|
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| 01/01 to |
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| 01/01 to |
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| 06/30/2014 | 06/30/2014 |
| 06/30/2013 |
| 06/30/2013 | |
Receivables from Affiliates |
|
|
| 559,836 |
| 349,085 |
| 404,862 |
| 339,043 | ||||
Zurich Santander Brasil Seguros e Previdência S.A.(6) | 543,010 |
| 3,176 |
| 303,115 |
| 3,037 | |||||||
Santander Capitalização S.A. (3) |
|
|
| 15,580 |
| 92,788 |
| 15,367 |
| 102,078 | ||||
Zurich Santander Brasil Seguros S.A.(6) |
| - |
| - |
| 72,407 |
| - | ||||||
Aymoré CFI (3) |
|
|
|
|
| - |
| 177,476 |
| - |
| 152,584 | ||
Santander CCVM(3) |
|
|
|
|
| - |
| 34,235 |
| - |
| 22,266 | ||
Santander Leasing(3) |
|
|
| - |
| 27,082 |
| - |
| 23,420 | ||||
Webmotors S.A.(7) |
|
|
|
|
| 390 |
| 435 |
| - |
| 6,275 | ||
Santander Brasil Asset(6) |
|
|
| - |
| - |
| 13,973 |
| 8,726 | ||||
Santander Serviços (3) |
|
|
| - |
| - |
| - |
| 10,337 | ||||
Others |
|
|
|
|
| 856 |
| 13,893 |
| - |
| 10,320 | ||
Other Receivables - Other |
|
|
| 272,056 |
| 25,638 |
| 186,015 |
| 16,779 | ||||
Brazil Foreign(3) |
|
|
|
|
| 262,322 |
| - |
| 175,969 |
| - | ||
Banco Santander Espanha(2) |
|
|
| 1,490 |
| - |
| 457 |
| - | ||||
CFI RCI Brasil(5) |
|
|
|
|
| 2 |
| 2,018 |
| - |
| 1,267 | ||
Santander Capitalização S.A. (3) |
|
|
| - |
| 1,675 |
| 1,577 |
| 3,343 | ||||
Santander Paraty (3) |
|
|
|
|
| 8,056 |
| 19,022 |
| 7,890 |
| 10,023 | ||
Aymoré CFI (3) |
|
|
|
|
| - |
| 1,070 |
| - |
| 828 | ||
Zurich Santander Brasil Seguros e Previdência S.A.(6) | - |
| 1,318 |
| - |
| 1,244 | |||||||
Other |
|
|
|
|
| 186 |
| 535 |
| 122 |
| 74 | ||
Deposits |
|
|
|
|
| (35,598,035) |
| (1,397,429) |
| (25,789,551) |
| (855,115) | ||
Santander Leasing(3) |
|
|
| (31,606,940) |
| (1,200,811) |
| (19,847,986) |
| (730,445) | ||||
Banco Santander Espanha(2) |
|
|
| (1,418) |
| - |
| (1,441) |
| - | ||||
Aymoré CFI(3) |
|
|
|
|
| (1,884,880) |
| (96,377) |
| (4,357,854) |
| (74,202) | ||
Banco Bandepe(3) |
|
|
|
|
| (676,030) |
| (31,821) |
| (652,081) |
| (29,296) | ||
Zurich Santander Brasil Seguros e Previdência S.A.(6) | (48,257) |
| - |
| (49,294) |
| - | |||||||
Santander Brasil Gestão de Recursos Ltda.(6) |
| (134,867) |
| (4,377) |
| - |
| - | ||||||
Sancap(3) |
|
|
|
|
| (98,071) |
| (5,524) |
| (153,885) |
| (3,669) | ||
Santander Brasil Asset(6) |
|
|
| (126,976) |
| (7,098) |
| (108,491) |
| (3,564) | ||||
Webmotors S.A. (7) |
|
|
|
|
| (134,947) |
| (6,377) |
| (106,252) |
| (476) | ||
Fundo de Investimento Santillana (4) |
|
| (512,639) |
| (30,752) |
| (247,187) |
| (8,333) | |||||
Isban Brasil S.A.(4) |
|
|
|
|
| (67,796) |
| (2,891) |
| (17,704) |
| (1,250) | ||
CFI RCI Brasil (5) |
|
|
|
|
| (49,112) |
| (4,004) |
| (31,944) |
| (523) | ||
Santander Securities Services Brasil DTVM S.A.(3) (9) | (37,216) |
| (1,750) |
| (31,425) |
| (1,074) | |||||||
Santander Brasil Consórcio (3) |
|
|
| (39,547) |
| (1,737) |
| (10,207) |
| (94) | ||||
Santander Paraty(3) |
|
|
|
|
| (46,364) |
| (651) |
| (43,014) |
| (112) | ||
Santander Capitalização S.A.(3) |
|
|
| (11,260) |
| - |
| (12,866) |
| - | ||||
Other |
|
|
|
|
| (121,715) |
| (3,259) |
| (117,920) |
| (2,077) | ||
Repurchase Commitments |
|
|
| (15,527,086) |
| (905,837) |
| (16,068,145) |
| (443,110) | ||||
Santander Brasil Advisory(3) |
|
|
| (11,451) |
| (549) |
| (11,600) |
| (394) | ||||
Santander Getnet(3) |
|
|
|
|
| (21,143) |
| (4,433) |
| (7,220) |
| (556) | ||
Webmotors S.A.(7) |
|
|
|
|
| (724) |
| (168) |
| (21,180) |
| (925) | ||
Santander Brasil Consórcio(3) |
|
|
| (38,970) |
| (2,082) |
| (68,377) |
| (3,061) | ||||
Isban Brasil S.A.(4) |
|
|
|
|
| (20,738) |
| (352) |
| (32,685) |
| (355) | ||
Produban Serviços de Informática S.A. (4) |
| (20,924) |
| (235) |
| (1,614) |
| (174) | ||||||
Santander FI Amazonas(3) |
|
|
| (118,696) |
| (3,270) |
| (86,679) |
| (235) | ||||
Santander FI Financial (3) |
|
|
| (7,224,583) |
| (345,284) |
| (6,583,671) |
| (222,695) | ||||
Santander Leasing(3) |
|
|
| (7,830,042) |
| (533,464) |
| (8,826,645) |
| (195,108) | ||||
Banco Bandepe(3) |
|
|
|
|
| (91,660) |
| (4,094) |
| (88,109) |
| (4,816) | ||
Webcasas S.A.(3) |
|
|
|
|
| (19,804) |
| - |
| (22,460) |
| (388) | ||
Santander CCVM(3) |
|
|
|
|
| (91,151) |
| (4,816) |
| (112,949) |
| (5,158) | ||
Santander Participações(3) |
|
|
| (10,972) |
| (519) |
| (70,101) |
| (5,885) | ||||
Santander FI SBAC(3) |
|
|
| (11,651) |
| (4,406) |
| (127,870) |
| (2,581) | ||||
Other |
|
|
|
|
| (14,577) |
| (2,165) |
| (6,985) |
| (779) | ||
78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| Bank | ||||||||||||
|
|
|
|
|
|
|
| Assets |
| Income |
| Assets |
| Income | ||||||||||
|
|
|
|
|
|
|
| (Liabilities) | (Expenses) | (Liabilities) | (Expenses) | |||||||||||||
|
|
|
|
|
|
|
|
|
| 01/01 to |
|
|
| 01/01 to | ||||||||||
|
|
|
|
|
|
|
| 06/30/2014 | 06/30/2014 |
| 06/30/2013 |
| 06/30/2013 | |||||||||||
Borrowings and Onlendings |
|
|
| (48,120) |
| (361) |
| (140,071) |
| (5,496) | ||||||||||||||
Banco Santander Espanha(2) |
|
|
| (47,054) |
| (263) |
| (136,288) |
| (5,381) | ||||||||||||||
Santander Brasil EFC(3) |
|
|
| - |
| (98) |
| - |
| (115) | ||||||||||||||
Banco Santander S.A. (Uruguay)(4) |
|
|
| (1,066) |
| - |
| (3,783) |
| - | ||||||||||||||
Dividends and Bonuses Payables |
|
|
| (465,883) |
| - |
| (608,249) |
| - | ||||||||||||||
Sterrebeeck B.V.(2) |
|
|
|
| (290,918) |
| - |
| (422,888) |
| - | |||||||||||||
GES (4) |
|
|
|
|
| (174,500) |
| - |
| (184,912) |
| - | ||||||||||||
SIH (4) |
|
|
|
|
| (309) |
| - |
| (449) |
| - | ||||||||||||
Banco Madesant - Sociedade Unipessoal, S.A.(Banco Madesant) (4) | (156) |
| - |
| - |
| - | |||||||||||||||||
Payables from Affiliates |
|
|
| (17,958) |
| (187,018) |
| (49,324) |
| (164,220) | ||||||||||||||
Produban Servicios Informáticos Generales, S.L. (Produban Servicios) (4) | - |
| - |
| - |
| (3,164) | |||||||||||||||||
Isban Brasil S.A.(4) |
|
|
|
|
| (447) |
| (50,498) |
| (21,059) |
| (45,616) | ||||||||||||
Produban Serviços de Informática S.A.(4) |
| - |
| (72,831) |
| (13,063) |
| (73,418) | ||||||||||||||||
Konecta Brazil Outsourcing Ltda.(4) |
| - |
| (19,819) |
| - |
| - | ||||||||||||||||
Ingenieria de Software Bancário, S.L. (Ingeniería) (4) | (8,925) |
| (9,995) |
| - |
| (7,053) | |||||||||||||||||
Santander Microcrédito S.A.(3) |
|
|
| (3,174) |
| (19,679) |
| (3,023) |
| (17,009) | ||||||||||||||
Banco Santander Espanha(2) |
|
|
| - |
| (1,108) |
| (606) |
| (296) | ||||||||||||||
Santander Getnet(3) |
|
|
|
|
| (5,309) |
| (10,063) |
| (11,429) |
| (16,700) | ||||||||||||
Other |
|
|
|
|
| (103) |
| (3,025) |
| (144) |
| (964) | ||||||||||||
Debt Instruments Eligible to Compose Capital |
| (5,310,589) |
| (168,302) |
| - |
| - | ||||||||||||||||
Banco Santander Espanha(2) (8) |
|
|
| (5,310,589) |
| (168,302) |
| - |
| - | ||||||||||||||
Donations |
|
|
|
|
| - |
| (8,341) |
| - |
| (11,003) | ||||||||||||
Santander Cultural |
|
|
|
|
| - |
| - |
| - |
| (1,405) | ||||||||||||
Fundação Sudameris |
|
|
|
|
| - |
| (6,000) |
| - |
| (6,000) | ||||||||||||
Fundação Santander |
|
|
|
|
| - |
| (2,289) |
| - |
| (1,367) | ||||||||||||
Instituto Escola Brasil |
|
|
|
|
| - |
| (52) |
| - |
| (2,231) | ||||||||||||
Other Payables - Other |
|
|
| (1,872,286) |
| (330,881) |
| (2,864,220) |
| (144,700) | ||||||||||||||
Banco Santander Espanha(2) |
|
|
| (1,158) |
| (29,618) |
| (1,784) |
| (31,294) | ||||||||||||||
Brazil Foreign(3) |
|
|
|
|
| (1,870,774) |
| (21,993) |
| (2,275,287) |
| (29,447) | ||||||||||||
Isban Brasil S.A. (4) |
|
|
|
|
| - |
| (141,554) |
| - |
| - | ||||||||||||
Santander Brasil Gestão de Recursos Ltda. (6) |
| - |
| - |
| (587,000) |
| - | ||||||||||||||||
TecBan(7) |
|
|
|
|
| - |
| (64,971) |
| - |
| (54,309) | ||||||||||||
Ingeniería(4) |
|
|
|
|
| - |
| (17,688) |
| - |
| (17,272) | ||||||||||||
Produban Servicios(4) |
|
|
| - |
| (10,824) |
| - |
| (9,652) | ||||||||||||||
Aquanima Brasil Ltda.(4) |
|
|
| - |
| (11,288) |
| - |
| - | ||||||||||||||
Other |
|
|
|
|
| (354) |
| (32,945) |
| (149) |
| (2,726) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated | ||||||||||
|
|
|
|
|
|
|
| Assets |
| Income |
| Assets |
| Income | ||||||||||
|
|
|
|
|
|
|
| (Liabilities) | (Expenses) | (Liabilities) | (Expenses) | |||||||||||||
|
|
|
|
|
|
|
|
|
| 01/01 to |
|
|
| 01/01 to | ||||||||||
|
|
|
|
|
|
|
| 06/30/2014 | 06/30/2014 |
| 06/30/2013 |
| 06/30/2013 | |||||||||||
Cash |
|
|
|
|
| 787,325 |
| - |
| 96,485 |
| - | ||||||||||||
Banco Santander Espanha(2) |
|
|
| 783,961 |
| - |
| 95,842 |
| - | ||||||||||||||
Banco Santander Totta, S.A.(4) |
|
|
| 3,364 |
| - |
| 643 |
| - | ||||||||||||||
Interbank Investments |
|
|
|
| 8,067,306 |
| 9,208 |
| 9,833,323 |
| 8,384 | |||||||||||||
Banco Santander Espanha(1) (2) |
|
|
| 8,067,306 |
| 9,208 |
| 9,833,323 |
| 8,384 | ||||||||||||||
Derivatives Financial Instruments - Net |
| (21,781) |
| (60,052) |
| (283,548) |
| 280,988 | ||||||||||||||||
Santander Benelux(4) |
|
|
| (9,821) |
| (118,895) |
| (115,244) |
| 228,215 | ||||||||||||||
Fundo de Investimento Santillana (4) |
|
| (86,928) |
| (13,221) |
| (193,641) |
| 10,378 | |||||||||||||||
Abbey National Treasury(4) |
|
|
| 16,404 |
| 56,697 |
| (19,975) |
| 44,723 | ||||||||||||||
Banco Santander Espanha(2) |
|
|
| 58,564 |
| 15,367 |
| 45,312 |
| (2,328) | ||||||||||||||
Trading Account |
|
|
|
|
| - |
| (30,541) |
| 177,216 |
| 4,923 | ||||||||||||
Banco Santander Espanha(2) |
|
|
| - |
| (30,546) |
| 171,455 |
| 4,783 | ||||||||||||||
Abbey National Treasury (4) |
|
|
| - |
| 4 |
| - |
| - | ||||||||||||||
Santander Benelux(4) |
|
|
| - |
| 1 |
| 5,761 |
| 140 | ||||||||||||||
79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated | ||||||||||
|
|
|
|
|
|
|
| Assets |
| Income |
| Assets |
| Income | ||||||||||
|
|
|
|
|
|
|
| (Liabilities) | (Expenses) | (Liabilities) | (Expenses) | |||||||||||||
|
|
|
|
|
|
|
|
|
| 01/01 to |
|
|
| 01/01 to | ||||||||||
|
|
|
|
|
|
|
| 06/30/2014 | 06/30/2014 |
| 06/30/2013 |
| 06/30/2013 | |||||||||||
Foreign Exchange Portfolio - Net |
|
|
| (7,146) |
| 19,975 |
| (201,610) |
| (81,336) | ||||||||||||||
Banco Santander Espanha(2) |
|
|
| (15,439) |
| 37,455 |
| (201,610) |
| (81,336) | ||||||||||||||
Santander Benelux(4) |
|
|
| 8,293 |
| (17,480) |
| - |
| - | ||||||||||||||
Receivables from Affiliates |
|
|
| 561,949 |
| 7,794 |
| 377,322 |
| 41,251 | ||||||||||||||
Isban Brasil S.A.(4) |
|
|
|
|
| - |
| 286 |
| - |
| - | ||||||||||||
Zurich Santander Brasil Seguros e Previdência S.A.(6) | 560,448 |
| 7,301 |
| 304,903 |
| 25,736 | |||||||||||||||||
Zurich Santander Brasil Seguros S.A.(6) |
| 840 |
| - |
| 72,407 |
| 14,974 | ||||||||||||||||
Others |
|
|
|
|
| 661 |
| 207 |
| 12 |
| 541 | ||||||||||||
Other Receivables - Other |
|
|
| 8,803 |
| 6,167 |
| 616 |
| 48,076 | ||||||||||||||
Banco Santander Espanha(2) |
|
|
| 1,490 |
| - |
| 457 |
| - | ||||||||||||||
Zurich Santander Brasil Seguros e Previdência S.A.(6) | 7,313 |
| 5,928 |
| 98 |
| 48,003 | |||||||||||||||||
Other |
|
|
|
|
| - |
| 239 |
| 61 |
| 73 | ||||||||||||
Deposits |
|
|
|
|
| (930,604) |
| (46,678) |
| (360,077) |
| (10,844) | ||||||||||||
Banco Santander Espanha(2) |
|
|
| (1,418) |
| - |
| (1,441) |
| - | ||||||||||||||
Zurich Santander Brasil Seguros S.A.(6) |
| (4,326) |
| - |
| (11,162) |
| - | ||||||||||||||||
Zurich Santander Brasil Seguros e Previdência S.A.(6) | (48,257) |
| - |
| (49,294) |
| - | |||||||||||||||||
Isban Brasil S.A. (4) |
|
|
|
|
| (67,796) |
| (2,891) |
| (17,704) |
| (1,250) | ||||||||||||
Produban Serviços de Informática S.A. (4) |
| (15,294) |
| (1,181) |
| (26,390) |
| (936) | ||||||||||||||||
Santander Brasil Gestão de Recursos Ltda. (6) |
| (134,867) |
| (4,377) |
| - |
| - | ||||||||||||||||
Fundo de Investimento Santillana (4) |
|
| (512,639) |
| (30,752) |
| (247,187) |
| (8,333) | |||||||||||||||
Santander Brasil Asset(6) |
|
|
| (126,976) |
| (7,098) |
| - |
| - | ||||||||||||||
Others |
|
|
|
|
| (19,031) |
| (379) |
| (6,899) |
| (325) | ||||||||||||
Repurchase Commitments |
|
|
| (55,540) |
| (2,017) |
| (34,522) |
| (533) | ||||||||||||||
Produban Serviços de Informática S.A.(4) |
| (20,924) |
| (235) |
| (1,614) |
| (174) | ||||||||||||||||
Isban Brasil S.A.(4) |
|
|
|
|
| (20,738) |
| (352) |
| (32,685) |
| (355) | ||||||||||||
Santander Brasil Gestão de Recursos Ltda. (6) |
| (3,192) |
| (153) |
| - |
| - | ||||||||||||||||
REB Empreendimentos e Administradora de Bens S.A. (4) | (9,403) |
| (1,223) |
| - |
| - | |||||||||||||||||
Other |
|
|
|
|
| (1,283) |
| (54) |
| (223) |
| (4) | ||||||||||||
Borrowings and Onlendings |
|
|
| (48,120) |
| (263) |
| (162,728) |
| (5,381) | ||||||||||||||
Banco Santander Espanha (2) |
|
|
| (47,054) |
| (263) |
| (158,945) |
| (5,381) | ||||||||||||||
Banco Santander S.A. (Uruguay)(4) |
|
|
| (1,066) |
| - |
| (3,783) |
| - | ||||||||||||||
Dividends and Bonuses Payables |
|
|
| (465,883) |
| - |
| (608,249) |
| - | ||||||||||||||
Sterrebeeck B.V.(2) |
|
|
|
| (290,918) |
| - |
| (422,888) |
| - | |||||||||||||
GES(4) |
|
|
|
|
| (174,500) |
| - |
| (184,912) |
| - | ||||||||||||
SIH(4) |
|
|
|
|
| (309) |
| - |
| (449) |
| - | ||||||||||||
Banco Madesant (4) |
|
|
|
|
| (156) |
| - |
| - |
| - | ||||||||||||
Payables from Affiliates |
|
|
| (10,450) |
| (164,278) |
| (40,032) |
| (126,102) | ||||||||||||||
Banco Santander Espanha(2) |
|
|
| - |
| (1,133) |
| (631) |
| (413) | ||||||||||||||
Produban Servicios(4) |
|
|
| - |
| - |
| - |
| (3,164) | ||||||||||||||
Isban Brasil S.A.(4) |
|
|
|
|
| (1,307) |
| (54,754) |
| (26,270) |
| (45,616) | ||||||||||||
Produban Serviços de Informática S.A.(4) |
| (50) |
| (73,928) |
| (13,063) |
| (62,870) | ||||||||||||||||
Ingeniería(4) |
|
|
|
|
| (8,925) |
| (9,995) |
| - |
| (7,053) | ||||||||||||
Konecta Brazil Outsourcing Ltda.(4) |
| - |
| (19,819) |
| - |
| - | ||||||||||||||||
Other |
|
|
|
|
| (168) |
| (4,649) |
| (68) |
| (6,986) | ||||||||||||
Debt Instruments Eligible to Compose Capital |
| (5,310,589) |
| (168,302) |
| - |
| - | ||||||||||||||||
Banco Santander Espanha(2) (8) |
|
|
| (5,310,589) |
| (168,302) |
| - |
| - | ||||||||||||||
Donations |
|
|
|
|
| - |
| (10,351) |
| - |
| (13,428) | ||||||||||||
Santander Cultural |
|
|
|
|
| - |
| (2,010) |
| - |
| (3,830) | ||||||||||||
Fundação Sudameris |
|
|
|
|
| - |
| (6,000) |
| - |
| (6,000) | ||||||||||||
Fundação Santander |
|
|
|
|
| - |
| (2,289) |
| - |
| (1,367) | ||||||||||||
Instituto Escola Brasil |
|
|
|
|
| - |
| (52) |
| - |
| (2,231) | ||||||||||||
80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated | |||||||||||||||||
|
|
|
|
|
|
|
| Assets |
| Income |
| Assets |
| Income | |||||||||||||||||
|
|
|
|
|
|
|
| (Liabilities) | (Expenses) | (Liabilities) | (Expenses) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| 01/01 to |
|
|
| 01/01 to | |||||||||||||||||
|
|
|
|
|
|
|
| 06/30/2014 | 06/30/2014 |
| 06/30/2013 |
| 06/30/2013 | ||||||||||||||||||
Other Payables - Other |
|
|
| (17,599) |
| (251,868) |
| (606,657) |
| (116,128) | |||||||||||||||||||||
Banco Santander Espanha(2) |
|
|
| (1,158) |
| (29,618) |
| (4,746) |
| (31,294) | |||||||||||||||||||||
Isban Brasil S.A.(4) |
|
|
|
|
| - |
| (147,628) |
| - |
| - | |||||||||||||||||||
Produban Serviços de Informática S.A.(4) |
| - |
| (31,288) |
| - |
| - | |||||||||||||||||||||||
Santander Brasil Gestão de Recursos Ltda. (6) |
| - |
| - |
| (587,000) |
| - | |||||||||||||||||||||||
Ingeniería(4) |
|
|
|
|
| - |
| (18,418) |
| - |
| (17,903) | |||||||||||||||||||
Produban Servicios(4) |
|
|
| - |
| (11,124) |
| - |
| (9,866) | |||||||||||||||||||||
Aquanima Brasil Ltda.(4) |
|
|
| - |
| (11,288) |
| - |
| - | |||||||||||||||||||||
Zurich Santander Brasil Seguros e Previdência S.A.(6) | (15,567) |
| (314) |
| (13,753) |
| - | ||||||||||||||||||||||||
Zurich Santander Brasil Seguros S.A.(6) |
| (840) |
| (28) |
| (994) |
| (30) | |||||||||||||||||||||||
TecBan (7) |
|
|
|
|
| - |
| - |
| - |
| (54,309) | |||||||||||||||||||
Other |
|
|
|
|
| (34) |
| (2,162) |
| (164) |
| (2,726) | |||||||||||||||||||
(1) On June 30, 2014, refers to investments in foreign currency (overnight) with maturity on July 1, 2014 and interest rates of 0.17% p.a. maintained by the Bank's Santander Brasil and its Grand Cayman Branch, near the branch of Banco Santander Spain (New York). | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
(2) Controller - Banco Santander is indirectly controlled by Banco Santander Spain (Note 1 and 25.d), through its subsidiary GES and Sterrebeeck B.V. | |||||||||||||||||||||||||||||||
(3) Controlled - Banco Santander. |
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
(4) Controlled - Banco Santander Spain. |
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
(5) Jointly Controlled - Banco Santander. |
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
(6) Associated Company - Banco Santander Spain. |
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(7) Jointly Controlled - Santander Serviços. |
|
|
|
|
|
|
|
| |||||||||||||||||||||||
(8) Refers to the portion acquired by the Parent Due to Regulatory Capital Otimization Planheld in the first half of 2014 (Note 23.f). | |||||||||||||||||||||||||||||||
(9)The approved on Shareholders’ Meeting of June 6, 2014 ,the name change has been approved of the CRV Distributor Securities S.A. (CRV DTVM) was approved for Santander Securities Services Brazil DTVM S.A., under approval by Bacen (Notes 14 and 36.a). | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
26. Income from Services Rendered and Banking Fees |
|
|
|
| |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated | |||||||||||||||||
|
|
|
|
|
|
|
| 01/01 to |
| 01/01 to |
| 01/01 to |
| 01/01 to | |||||||||||||||||
|
|
|
|
|
|
|
| 06/30/2014 | 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 | ||||||||||||||||||
Asset Management |
|
|
|
|
| 450,799 |
| 487,776 |
| 477,123 |
| 589,981 | |||||||||||||||||||
Checking Account Services |
|
|
| 792,900 |
| 822,119 |
| 911,939 |
| 868,437 | |||||||||||||||||||||
Lending Operations and Income from Guarantees Provided | 468,972 |
| 436,971 |
| 585,509 |
| 577,776 | ||||||||||||||||||||||||
Lending Operations |
|
|
|
|
| 272,785 |
| 272,926 |
| 408,344 |
| 423,754 | |||||||||||||||||||
Income Garantees Provided |
|
|
| 196,187 |
| 164,045 |
| 177,165 |
| 154,022 | |||||||||||||||||||||
Insurance Fees |
|
|
|
|
| 841,149 |
| 926,058 |
| 849,483 |
| 915,930 | |||||||||||||||||||
Credit Cards (Debit and Credit) and Acquiring Services | 1,450,974 |
| 1,330,293 |
| 1,647,810 |
| 1,499,842 | ||||||||||||||||||||||||
Collection |
|
|
|
|
| 448,859 |
| 384,332 |
| 448,859 |
| 384,332 | |||||||||||||||||||
Brokerage, Custody and Placement of Securities |
| 192,749 |
| 177,608 |
| 255,841 |
| 257,290 | |||||||||||||||||||||||
Other |
|
|
|
|
| 32,301 |
| 23,438 |
| 139,302 |
| 120,292 | |||||||||||||||||||
Total |
|
|
|
|
| 4,678,703 |
| 4,588,595 |
| 5,315,866 |
| 5,213,880 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
27. Personnel Expenses |
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated | |||||||||||||||||
|
|
|
|
|
|
|
| 01/01 to |
| 01/01 to |
| 01/01 to |
| 01/01 to | |||||||||||||||||
|
|
|
|
|
|
|
| 06/30/2014 | 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 | ||||||||||||||||||
Compensation |
|
|
|
|
| 1,638,447 |
| 1,641,188 |
| 1,738,807 |
| 1,740,150 | |||||||||||||||||||
Charges |
|
|
|
|
| 597,613 |
| 618,625 |
| 633,573 |
| 649,575 | |||||||||||||||||||
Benefits |
|
|
|
|
| 544,057 |
| 536,945 |
| 578,467 |
| 567,024 | |||||||||||||||||||
Training |
|
|
|
|
| 28,367 |
| 47,905 |
| 30,879 |
| 49,276 | |||||||||||||||||||
Other |
|
|
|
|
| 12,475 |
| 7,552 |
| 12,709 |
| 7,767 | |||||||||||||||||||
Total |
|
|
|
|
| 2,820,959 |
| 2,852,215 |
| 2,994,435 |
| 3,013,792 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
81
28. Other Administrative Expenses |
|
|
|
|
|
|
|
| |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated | |||||||||||||||
|
|
|
|
|
|
|
| 01/01 to |
| 01/01 to |
| 01/01 to |
| 01/01 to | |||||||||||||||
|
|
|
|
|
|
|
| 06/30/2014 | 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 | ||||||||||||||||
Depreciation and Amortization(1) |
|
|
| 2,679,011 |
| 2,724,440 |
| 2,704,523 |
| 2,740,937 | |||||||||||||||||||
Outsourced and Specialized Services |
| 1,023,114 |
| 927,305 |
| 1,152,905 |
| 1,100,255 | |||||||||||||||||||||
Communications |
|
|
|
|
| 270,532 |
| 298,474 |
| 283,335 |
| 309,372 | |||||||||||||||||
Data Processing |
|
|
|
|
| 650,950 |
| 620,254 |
| 659,439 |
| 630,371 | |||||||||||||||||
Advertising, Promotions and Publicity |
| 140,509 |
| 144,225 |
| 163,037 |
| 175,322 | |||||||||||||||||||||
Rentals |
|
|
|
|
| 349,847 |
| 351,954 |
| 364,545 |
| 358,713 | |||||||||||||||||
Transportation and Travel |
|
|
| 80,259 |
| 86,856 |
| 97,017 |
| 102,582 | |||||||||||||||||||
Financial System Services |
|
|
| 169,480 |
| 145,818 |
| 191,523 |
| 161,185 | |||||||||||||||||||
Security and Money Transport |
|
|
| 288,404 |
| 272,646 |
| 306,559 |
| 279,335 | |||||||||||||||||||
Asset Maintenance and Upkeep |
|
|
| 91,158 |
| 90,333 |
| 99,824 |
| 95,428 | |||||||||||||||||||
Water, Electricity and Gas |
|
|
| 83,288 |
| 82,244 |
| 83,668 |
| 82,510 | |||||||||||||||||||
Materials |
|
|
|
|
| 38,138 |
| 48,754 |
| 38,801 |
| 49,939 | |||||||||||||||||
Other |
|
|
|
|
| 125,392 |
| 125,237 |
| 131,989 |
| 127,654 | |||||||||||||||||
Total |
|
|
|
|
| 5,990,082 |
| 5,918,540 |
| 6,277,165 |
| 6,213,603 | |||||||||||||||||
(1) In the Bank and Consolidated, includes goodwill amortization of R$1,818,492 (2013 - R$1,818,492), held on time, length and proportion of the projected results which are subject to annual verification (Note 16). | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
29. Tax Expenses |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated | |||||||||||||||
|
|
|
|
|
|
|
| 01/01 to |
| 01/01 to |
| 01/01 to |
| 01/01 to | |||||||||||||||
|
|
|
|
|
|
|
| 06/30/2014 | 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 | ||||||||||||||||
Cofins (Contribution for Social Security Financing)(1) | 769,075 |
| 590,678 |
| 900,532 |
| 750,561 | ||||||||||||||||||||||
ISS (Tax on Services) |
|
|
|
| 172,181 |
| 169,398 |
| 201,738 |
| 201,019 | ||||||||||||||||||
PIS/Pasep (Tax on Revenue) |
|
|
| 125,040 |
| 95,985 |
| 146,269 |
| 123,089 | |||||||||||||||||||
Other |
|
|
|
|
| 371,212 |
| 287,401 |
| 423,937 |
| 319,397 | |||||||||||||||||
Total |
|
|
|
|
| 1,437,508 |
| 1,143,462 |
| 1,672,476 |
| 1,394,066 | |||||||||||||||||
(1) Includes provisions updates for PIS and Cofins of Law 9.718/1998. |
|
| |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
30. Other Operating Income |
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated | |||||||||||||||
|
|
|
|
|
|
|
| 01/01 to |
| 01/01 to |
| 01/01 to |
| 01/01 to | |||||||||||||||
|
|
|
|
|
|
|
| 06/30/2014 | 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 | ||||||||||||||||
Net Income Capitalization |
|
|
| - |
| - |
| 124,550 |
| 139,728 | |||||||||||||||||||
Monetary Adjustment of Escrow Deposits |
| 156,592 |
| 129,511 |
| 221,152 |
| 169,949 | |||||||||||||||||||||
Recoverable Taxes |
|
|
|
|
| 101,792 |
| 59,166 |
| 131,021 |
| 84,107 | |||||||||||||||||
Recovery of Charges and Expenses |
|
|
| 377,350 |
| 331,935 |
| 240,887 |
| 233,017 | |||||||||||||||||||
Monetary Variation |
|
|
|
|
| 265,707 |
| 137,910 |
| 265,733 |
| 137,338 | |||||||||||||||||
Other |
|
|
|
|
| 319,390 |
| 185,715 |
| 264,090 |
| 231,818 | |||||||||||||||||
Total |
|
|
|
|
| 1,220,831 |
| 844,237 |
| 1,247,433 |
| 995,957 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
82
31. Other Operating Expenses |
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated |
|
|
|
|
|
|
|
| 01/01 to |
| 01/01 to |
| 01/01 to |
| 01/01 to |
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Operating Provisions |
|
|
|
|
|
|
|
|
|
|
|
| ||
Tax (Note 22.c) |
|
|
|
|
| 93,858 |
| 67,441 |
| 101,499 |
| 102,133 | ||
Labor (Note 22.c) |
|
|
|
|
| 379,993 |
| 38,468 |
| 400,477 |
| 59,210 | ||
Civil (Note 22.c) |
|
|
|
|
| 270,481 |
| 270,973 |
| 329,850 |
| 344,708 | ||
Other |
|
|
|
|
| - |
| 58,476 |
| - |
| 119,881 | ||
Credit Cards |
|
|
|
|
| 667,851 |
| 611,793 |
| 765,786 |
| 698,609 | ||
Actuarial Losses - Pension Plan (Note 34.a) |
| 108,134 |
| 177,992 |
| 108,146 |
| 178,020 | ||||||
Monetary Losses |
|
|
|
|
| 7,936 |
| 49,291 |
| 7,936 |
| 49,347 | ||
Legal Fees and Costs |
|
|
|
|
| 50,010 |
| 55,486 |
| 60,453 |
| 61,344 | ||
Serasa and SPC (Credit Reporting Agency) |
| 37,428 |
| 39,982 |
| 42,787 |
| 44,490 | ||||||
Brokerage Fees |
|
|
|
|
| 32,298 |
| 28,783 |
| 32,551 |
| 28,792 | ||
Commissions |
|
|
|
|
| 53,594 |
| 45,858 |
| 60,291 |
| 61,644 | ||
Impairment (1) |
|
|
|
|
| 1,271 |
| 95,949 |
| 1,271 |
| 95,949 | ||
Other |
|
|
|
|
| 483,973 |
| 402,576 |
| 586,001 |
| 486,663 | ||
Total |
|
|
|
|
| 2,186,827 |
| 1,943,068 |
| 2,497,048 |
| 2,330,790 | ||
(1) In the Bank and Consolidated in 2013, includes loss not recoverable asset recorded by buying rights to the provision of payroll in the amount of R$63,275 and assets in the acquisition and development of software in the amount of R$31,929. The loss related to the acquisition of rights in payrolls was recorded due to the reduction in the value of the expected return on the management of payroll and history of broken contracts. The loss on the acquisition and development of software was recorded due to obsolescence and discontinuity of such systems. | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32. Non-Operating Result | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated |
|
|
|
|
|
|
|
| 01/01 to |
| 01/01 to |
| 01/01 to |
| 01/01 to |
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Result of Investments |
|
|
|
|
| - |
| - |
| (43) |
| (163) | ||
Result on Sale of Other Assets (1) |
|
|
| 28,919 |
| 117,851 |
| 29,551 |
| 119,629 | ||||
Reversal (Recognition) of Allowance for Losses on Other Assets | 958 |
| 90,756 |
| 1,034 |
| 90,817 | |||||||
Expense on Assets Not in Use |
|
|
| (2,054) |
| (4,261) |
| (4,724) |
| (5,654) | ||||
Gains (Losses) of Capital (2) |
|
|
| (677) |
| (2,858) |
| (577) |
| 116,762 | ||||
Other Income (Expenses) (3) |
|
|
| 19,592 |
| (122,934) |
| 20,155 |
| (122,091) | ||||
Total |
|
|
|
|
| 46,738 |
| 78,554 |
| 45,396 |
| 199,300 | ||
(1) In the Bank and Consolidated in 2013 includes R$121,391 related to the gain on sale of real estate to the Real Estate Fund Santander Agencies. This fund has administration and management by third parties. | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Consolidated in 2013 includes R$119,961 related to the gain variation in percentage of shareholding in Webmotors S.A. due to the entry of Carsales in their capital (Note 14 and 36.d). | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) In the Bank and Consolidated in 2013 includes R$139,215 related to the recognition of a provision to cover restructuring costs and labor indemnity. | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33. Income Tax and Social Contribution | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
|
| Consolidated |
|
|
|
|
|
|
|
| 01/01 to |
| 01/01 to |
| 01/01 to |
| 01/01 to |
|
|
|
|
|
|
|
| 06/30/2014 |
| 06/30/2013 |
| 06/30/2014 |
| 06/30/2013 |
Income Before Taxes on Income and Profit Sharing |
| 2,505,461 |
| (343,047) |
| 2,923,045 |
| 570,235 | ||||||
Profit Sharing (1) |
|
|
|
|
| (524,896) |
| (431,636) |
| (552,810) |
| (473,864) | ||
Interest on Capital |
|
|
|
|
| - |
| (300,000) |
| (5) |
| (300,000) | ||
Unrealized results |
|
|
|
|
| - |
| - |
| (71) |
| (4,400) | ||
Income Before Taxes |
|
|
|
|
| 1,980,565 |
| (1,074,683) |
| 2,370,159 |
| (208,029) | ||
Total Income and Social Contribution Tax at the Rates of 25% and 15%, Respectively | (792,226) |
| 429,873 |
| (948,064) |
| 83,212 | |||||||
Equity in Subsidiaries(2) |
|
|
|
|
| 199,943 |
| 135,913 |
| 116 |
| 2,198 | ||
Nondeductible Expenses, Net of Non-Taxable Income |
| 44,780 |
| (4,481) |
| 78,390 |
| 70,724 | ||||||
Exchange Variation - Foreign Branches |
|
|
| (458,174) |
| 768,311 |
| (458,174) |
| 768,311 | ||||
Income and Social Contribution Taxes on Temporary Differences | 46,211 |
| 221,879 |
| 46,211 |
| 221,903 | |||||||
Effects of Change in Rate of CSLL(3) |
|
|
| - |
| - |
| 13,784 |
| 5,987 | ||||
Other Adjustments, Including Profits Provided Abroad |
| 19,494 |
| (8,739) |
| 26,832 |
| (930) | ||||||
Income and Social Contribution Taxes |
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|
| (939,972) |
| 1,542,756 |
| (1,240,905) |
| 1,151,405 | ||||
(1) The basis of calculation is the net income, after IR and CSLL. |
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(2) As a result of equity in subsidiaries are not included interest on capital received and receivable. |
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(3) Effect of rate differences for the other non-financial companies, which the social contribution tax rate is 9%. | ||||||||||||||
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83
34. Employee Benefit Plans - Post-Employment Benefits |
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a) Supplemental Pension Plan |
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Banco Santander and its subsidiaries sponsor the closed pension entities and cash assistance for the purpose of granting pensions and supplementary pensions granted by the Social Security, as defined in the basic regulations of each plan. | ||||||||||||||||||||||||||||
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I) Banesprev |
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Plan I: defined benefit plan fully defrayed by Banco Santander, 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. Plan is closed to new entrants since March 28, 2005. | ||||||||||||||||||||||||||||
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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. Plan is closed to new entrants since June 3, 2005. | ||||||||||||||||||||||||||||
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Plan V: defined benefit plan fully defrayed by Banco Santander, covers employees hired until May 22, 1975. | ||||||||||||||||||||||||||||
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Supplemental Pension Plan: 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, this Plan effective January 1, 2000. Plan is closed to new entrants since April 28, 2000. | ||||||||||||||||||||||||||||
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Plan III: variable contribution plan, for employees hired after May 22,1975, previously served by the Plans I and II. Under this plan contributions are made by 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. | ||||||||||||||||||||||||||||
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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. Plan is closed to new entrants since July 23, 2010. | ||||||||||||||||||||||||||||
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II) Sanprev - Santander Associação de Previdência (Sanprev) |
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Plan I:defined benefit plan, established on September 27, 1979, covering employees enrolled in the plan sponsor and is in process of extinction since June 30, 1996. | ||||||||||||||||||||||||||||
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Plan 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. Plan is closed to new entrants since March 10, 2010. | ||||||||||||||||||||||||||||
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Plan III: variable contribution plan covering employees of the sponsors who made the choice to contribute, by contributing freely chosen by participants from 2% of salary contribution. 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. Plan is closed to new entrants since March 10, 2010. | ||||||||||||||||||||||||||||
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III) Bandeprev - Bandepe Previdência Social (Bandeprev) |
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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. Both plans are closed to new entrants since 1999. | ||||||||||||||||||||||||||||
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IV) Other Plans |
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SantanderPrevi - Sociedade de Previdência Privada (SantanderPrevi): It´s a closed pension entity, which aims at setting up and implementation of benefit plans pension character, complementary to the general welfare, in the form of actual legislation. Have a plan designed in the form of defined contribution, with contributions made by sponsors and participants and It has 10 cases of lifetime income with benefits arising from the previous plan. | ||||||||||||||||||||||||||||
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Fundação América do Sul de Assistência e Seguridade Social (Fasass):Closed Pension entity that administered social security benefits in three planes, two on a Defined Benefit and a variable contribution, whose process of withdrawal of sponsorship, approved by Supplementary Pension Plan Secretariat (SPC), actual PREVIC, were implemented in July 2009. Plan I closed to new entrants since March 23, 1998 and plans II and III since July 8, 1999. | ||||||||||||||||||||||||||||
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Additionally, Banco Santander and its subsidiaries are sponsors of the boxes assistance, supplemental retirement plan and pension employees, established under the defined benefit plan. | ||||||||||||||||||||||||||||
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84
Determination of Liabilities (Assets) Net Actuarial |
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| Bank | |||||||||||||||
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| 06/30/2014 | |||||||||||||||
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| Other |
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| Banesprev | Sanprev |
| Plans |
| Bandeprev | ||||||||||||||||
Conciliation of Assets and Liabilities |
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Present Value of Actuarial Obligations |
| (15,379,571) |
| (324,343) |
| (346,175) |
| (1,045,528) | |||||||||||||||||||||
Fair Value of Plan Assets |
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| 13,831,344 |
| 603,258 |
| 3,868 |
| 1,287,611 | |||||||||||||||||||
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| (1,548,227) |
| 278,915 |
| (342,307) |
| 242,083 | |||||||||||||||
Being: |
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Superavit |
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| 162,968 |
| 278,915 |
| 765 |
| 241,610 | |||||||||||||||||
Deficit |
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| (1,711,195) |
| - |
| (343,073) |
| - | |||||||||||||||||
Amount not Recognized as Assets |
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| 162,968 |
| 278,915 |
| 765 |
| 241,610 | |||||||||||||||||||
Net Actuarial Asset |
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|
| - |
| - |
| - |
| 473 | |||||||||||||||||
Net Actuarial Liability (Note 21) |
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| (1,711,195) |
| - |
| (343,073) |
| - | |||||||||||||||||||
Payments Made |
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| 175,399 |
| - |
| 22,272 |
| (169) | |||||||||||||||||
Revenues (Expenses) Recorded (Note 31) |
| (90,973) |
| - |
| (16,895) |
| (266) | |||||||||||||||||||||
Other Equity Valuation Adjustments |
|
|
| (1,083,783) |
| (10,989) |
| (138,137) |
| (673) | |||||||||||||||||||
Actual Return on Plan Assets |
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| 1,157,919 |
| 89,171 |
| 949 |
| 42,639 | |||||||||||||||||||
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| Consolidated | |||||||||||||||
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| 06/30/2014 | |||||||||||||||
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| Other |
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| Banesprev | Sanprev |
| Plans |
| Bandeprev | ||||||||||||||||
Conciliation of Assets and Liabilities |
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Present Value of Actuarial Obligations |
| (15,578,272) |
| (324,983) |
| (346,175) |
| (1,045,528) | |||||||||||||||||||||
Fair Value of Plan Assets |
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| 14,208,045 |
| 604,019 |
| 3,868 |
| 1,287,611 | |||||||||||||||||||
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| (1,370,227) |
| 279,036 |
| (342,307) |
| 242,083 | |||||||||||||||
Being: |
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Superavit |
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| 340,968 |
| 279,036 |
| 765 |
| 241,610 | |||||||||||||||||
Deficit |
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| (1,711,195) |
| - |
| (343,073) |
| - | |||||||||||||||||
Value Unrecognized as Asset |
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| 340,968 |
| 279,036 |
| 765 |
| 241,610 | |||||||||||||||||||
Net Actuarial Asset |
|
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|
|
| - |
| - |
| - |
| 473 | |||||||||||||||||
Net Actuarial Liability (Note 21) |
|
|
| (1,711,195) |
| - |
| (343,073) |
| - | |||||||||||||||||||
Payments Made |
|
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|
|
| 175,411 |
| - |
| 22,272 |
| (169) | |||||||||||||||||
Revenues (Expenses) Recorded (Note 31) |
| (90,985) |
| - |
| (16,895) |
| (266) | |||||||||||||||||||||
Other Equity Valuation Adjustments |
|
|
| (1,083,783) |
| (10,989) |
| (138,137) |
| (673) | |||||||||||||||||||
Actual Return on Plan Assets |
|
|
| 1,191,395 |
| 89,191 |
| 949 |
| 42,639 | |||||||||||||||||||
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Opening of gains (losses) actuarial from experience, financial assumptions and demographic hypotheses: | |||||||||||||||||||||||||||||
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| Bank | |||||||||||||||
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| 06/30/2014 | |||||||||||||||
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| Other |
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| Banesprev | Sanprev |
| Plans |
| Bandeprev | ||||||||||||||||
Experience Plan |
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| 108,236 |
| (317) |
| 2,308 |
| (828) | |||||||||||||||||
Changes in Financial Assumptions |
|
|
| (699,975) |
| - |
| - |
| - | |||||||||||||||||||
Changes in Demographic Assumptions |
| - |
| - |
| - |
| - | |||||||||||||||||||||
Gain (Loss) Actuarial - Obligation |
|
|
| (591,739) |
| (317) |
| 2,308 |
| (828) | |||||||||||||||||||
Return on Investment, Return Unlike Implied Discount Rate | 450,123 |
| 60,192 |
| 787 |
| (27,569) | ||||||||||||||||||||||
Gain (Loss) Actuarial - Asset |
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| 450,123 |
| 60,192 |
| 787 |
| (27,569) | |||||||||||||||||||
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| Consolidated | |||||||||||||||
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| 06/30/2014 | |||||||||||||||
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| Other |
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| |||||||||||||||
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| Banesprev | Sanprev |
| Plans |
| Bandeprev | ||||||||||||||||
Experience Plan |
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| 110,127 |
| (317) |
| 2,308 |
| (828) | |||||||||||||||||
Changes in Financial Assumptions |
|
|
| (707,136) |
| - |
| - |
| - | |||||||||||||||||||
Changes in Demographic Assumptions |
| - |
| - |
| - |
| - | |||||||||||||||||||||
Gain (Loss) Actuarial - Obligation |
|
|
| (597,009) |
| (317) |
| 2,308 |
| (828) | |||||||||||||||||||
Return on Investment, Return Unlike Implied Discount Rate | 464,386 |
| 60,182 |
| 787 |
| (27,569) | ||||||||||||||||||||||
Gain (Loss) Actuarial - Asset |
|
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| 464,386 |
| 60,182 |
| 787 |
| (27,569) | |||||||||||||||||||
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85
The following table shows the duration of the actuarial liabilities of the plans sponsored by Banco Santander on December 31, 2013: | ||||||||||||||||||||||||||||
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Plans |
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| Duration (in years) | ||||||||||||||||||
Banesprev Plan I |
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| 12.66 | ||||||||||||||||
Banesprev Plan II |
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| 11.86 | ||||||||||||||||
Banesprev Plan III |
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| 8.66 | ||||||||||||||||
Banesprev Plan IV |
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| 16.70 | ||||||||||||||||
Banesprev Plan V |
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| 9.42 | ||||||||||||||||
Banesprev Pré-75 |
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| 10.17 | ||||||||||||||||
Sanprev I |
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| 7.15 | ||||||||||||||||
Sanprev II |
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| 17.87 | ||||||||||||||||
Bandeprev Básico |
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| 10.07 | ||||||||||||||||
Bandeprev Especial I |
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| 7.54 | |||||||||||||||||
Bandeprev Especial II |
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| 7.47 | ||||||||||||||||||
SantanderPrevi |
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| 7.63 | ||||||||||||||||
Meridional |
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| 7.27 | ||||||||||||||||
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a.1) Defined Contribution Plan |
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Among the plans administered by the Closed Pension Fund Entities linked to Santander, the Retirement Plan of SantanderPrevi is the only structured as Defined Contribution and open to new members, with contributions shared between sponsors and plan participants. The appropriate values by the sponsors in the first half of 2014 was R$31,887 (2013 - R$30,619) in the Bank and R$32,855 (2013 - R$31,695) in the Consolidated. | ||||||||||||||||||||||||||||
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b) Health and Dental Care Plan |
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Cabesp - Caixa Beneficente dos Funcionários do Banco do Estado de São Paulo: entity that covers health and dental care expenses of employees hired until Banespa privatization in 2000. | ||||||||||||||||||||||||||||
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SantanderPrevi’s Retirees: for the health care plan Retirement SantanderPrevi has lifelong nature and is a closed group. In shutdown the employee should have completed 10 years of employment with Banco Real and 55 years of age. In this case it was offered continuity of health care plan where the employee bears 70% of the monthly and Bank subsidizes 30%. This rule lasted until December, 2002 and after this period that the employee was off like status Retired Holandaprevi, bears 100% of the monthly health plan. | ||||||||||||||||||||||||||||
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Former Employees of Banco Real (Retiree by Circulares): it granting entitlement to healthcare former employee of Banco Real, with lifetime benefit was granted in the same condition the active employee, in this case, with the same coverage and plan design. | ||||||||||||||||||||||||||||
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| ||||||||||||||
Eligible only to plans basic and standard first apartment, opting for apartment he takes the difference between the plans more co-participation in the basic plan. Not allowed new additions of dependents. It has subsidizes of 90% of the plan. | ||||||||||||||||||||||||||||
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Bandeprev’s Retirees: health care plan retirees of Bandeprev’s pension plan beneficiaries is a lifetime benefit, for which Banco Santander is responsible for defraying 50% of the benefits of employees retired until November 27, 1998. For who retired after this date, the subsidy is 30%. | ||||||||||||||||||||||||||||
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| ||||||||||||||
Officer with Lifetime Benefits (Lifetime Officers): lifetime health care benefit granted to former officers of Banco Sudameris Brasil S.A. In this case, no inclusion, being 100% funded by the Bank. | ||||||||||||||||||||||||||||
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Life Insurance for Banco Real Retirees (Life Insurance): for Retirees Circulars: indemnity in case of Natural Death, Disease Disability, Accidental Death. The subsidy is 45.28% of the value. This benefit is also granted to retirees Foundation Sudameris where cost is 100% of the retired. It closed group. | ||||||||||||||||||||||||||||
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Free Clinic: health care plan (free clinic) is offered for life 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 ward where the cost is 100% of the Foundation Sudameris. | ||||||||||||||||||||||||||||
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Plasas:voluntary health plan, created on July 1, 1989, supplementary to the health care plan and only for cases of hospitalization. It includes a reserve made up by participants’ and Fasass’ contributions, which are suspended since August 1999. The Plan is closed to new entrants since July 1999. | ||||||||||||||||||||||||||||
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Additionally, it is assured to retired employees, since they meet to certain legal requirements and full pays 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’s provisions related to this retired employees are accrued using actuarial calculations based in the present value of the current cost. | ||||||||||||||||||||||||||||
86
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| |||||||||||||||
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| Bank |
|
|
| Consolidated | |||||||||||||||
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|
|
| 06/30/2014 |
|
|
| 06/30/2014 | |||||||||||||||
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|
|
|
| Cabesp |
| Other Plans | Cabesp |
| Other Plans | ||||||||||||||||
Conciliation of Assets and Liabilities |
|
|
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|
|
|
| |||||||||||||||||||||
Present Value of Actuarial Obligations |
| (5,192,873) |
| (503,941) |
| (5,400,624) |
| (503,941) | |||||||||||||||||||||
Fair Value of Plan Assets |
|
|
| 4,795,529 |
| 144,974 |
| 4,987,383 |
| 144,974 | |||||||||||||||||||
|
|
|
|
|
|
|
| (397,344) |
| (358,967) |
| (413,241) |
| (358,967) | |||||||||||||||
Being: |
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Superavit |
|
|
|
|
| - |
| 142,300 |
| - |
| 142,300 | |||||||||||||||||
Deficit |
|
|
|
|
| (397,345) |
| (501,267) |
| (413,241) |
| (501,267) | |||||||||||||||||
Value Unrecognized as Asset |
|
|
| - |
| 142,300 |
| - |
| 142,300 | |||||||||||||||||||
Net Actuarial Asset |
|
|
|
|
| - |
| - |
| - |
| - | |||||||||||||||||
Net Actuarial Liability (Note 21) |
|
|
| (397,345) |
| (501,267) |
| (413,241) |
| (501,267) | |||||||||||||||||||
Payments Made |
|
|
|
|
| 22,726 |
| 11,348 |
| 23,258 |
| 11,348 | |||||||||||||||||
Revenues (Expenses) Recorded |
|
|
| (32,839) |
| (26,842) |
| (34,275) |
| (26,842) | |||||||||||||||||||
Other Equity Valuation Adjustments |
|
|
| (411,857) |
| (111,443) |
| (425,473) |
| (111,443) | |||||||||||||||||||
Actual Return on Plan Assets |
|
|
| 588,149 |
| 6,979 |
| 612,368 |
| 6,979 | |||||||||||||||||||
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| |||||||||||||||
Opening of gains (losses) actuarial from experience, financial assumptions and demographic hypotheses: | |||||||||||||||||||||||||||||
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| |||||||||||||||
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| Bank |
|
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| Consolidated | |||||||||||||||
|
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|
|
| 06/30/2014 |
|
|
| 06/30/2014 | |||||||||||||||
|
|
|
|
|
|
|
| Cabesp |
| Other Plans | Cabesp |
| Others Plans | ||||||||||||||||
Experience Plan |
|
|
|
|
| 133,735 |
| (522) |
| 138,866 |
| (522) | |||||||||||||||||
Changes in Financial Assumptions |
|
|
| (347,081) |
| - |
| (360,896) |
| - | |||||||||||||||||||
Changes in Demographic Assumptions |
| - |
| - |
| - |
| - | |||||||||||||||||||||
Gain (Loss) Actuarial - Obligation |
|
|
| (213,346) |
| (522) |
| (222,030) |
| (522) | |||||||||||||||||||
Return on Investment, Return Unlike Implied Discount Rate | 349,452 |
| (832) |
| 364,181 |
| (832) | ||||||||||||||||||||||
Gain (Loss) Actuarial - Asset |
|
|
| 349,452 |
| (832) |
| 364,181 |
| (832) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
The following table shows the duration of the actuarial liabilities of the plans sponsored by Banco Santander on December 31, 2013: | |||||||||||||||||||||||||||||
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| |||||||||||||||
Plans |
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|
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| Duration (in years) | |||||||||||||||||
Cabesp |
|
|
|
|
|
|
|
|
|
|
| 14.03 | |||||||||||||||||
Law 9.656 /1998 |
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|
|
|
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|
|
|
|
| 41.25 | |||||||||||||||||
Bandepe |
|
|
|
|
|
|
|
|
|
|
| 15.08 | |||||||||||||||||
Plasas |
|
|
|
|
|
|
|
|
|
|
| 13.67 | |||||||||||||||||
Free Clinic |
|
|
|
|
|
|
|
|
|
|
| 11.92 | |||||||||||||||||
Lifelong Directors |
|
|
|
|
|
|
|
|
|
|
| 9.93 | |||||||||||||||||
Circular(1) |
|
|
|
|
|
|
|
|
|
|
| 13.76 and 10.89 | |||||||||||||||||
Life Insurance |
|
|
|
|
|
|
|
|
|
|
| 9.02 | |||||||||||||||||
(1) The duration 13.76 refers to the plan of Former Employees of Banco ABN Amro and 10.89 to the plane of Former Employees of Banco Real. | |||||||||||||||||||||||||||||
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| |||||||||||||||
c) Management of Plan Assets |
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| |||||||||||||||
The main categories of assets as a percentage of total assets of the plan are as follows: | |||||||||||||||||||||||||||||
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| |||||||||||||||
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| Bank/Consolidated | |||||||||||||||
|
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|
|
|
| 12/31/2013 | |||||||||||||||
Equity Instruments |
|
|
|
|
|
|
|
|
|
|
| 2.10% | |||||||||||||||||
Debt Instruments |
|
|
|
|
|
|
|
|
|
|
| 96.30% | |||||||||||||||||
Real Estate |
|
|
|
|
|
|
|
|
|
|
| 0.20% | |||||||||||||||||
Others |
|
|
|
|
|
|
|
|
|
|
| 1.40% | |||||||||||||||||
|
|
|
|
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|
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| |||||||||||||||
87
d) Actuarial Assumptions Adopted in Calculations | |||||||
|
|
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|
| |||
|
|
|
| Bank/Consolidated | |||
|
|
|
| 06/30/2014 | |||
|
| Pension |
| Health | |||
Nominal Discount Rate for Actuarial Obligation |
| 10.7%(1) and 11.2% | 10.8%(2) and 11.3% | ||||
Rate Calculation of Interest Under Assets to the Next Year |
| 11.2% |
| 11.3% | |||
Estimated Long-term Inflation Rate |
| 4.5% |
| 4.5% | |||
Estimated Salary Increase Rate |
| 5.0% |
| 5.0% | |||
Boards of Mortality |
| AT2000 |
| AT2000 | |||
(1) For Banesprev II, V and Pré75 plans. |
|
|
|
| |||
(2) For Cabesp plans. |
|
|
|
| |||
|
|
|
|
| |||
e) Sensitivity Analysis | |||||||
|
|
|
|
| |||
The assumptions about the rates related to the cost of medical care have a significant effect on the amounts recognized in income. The change of one percentage point in the rate of health care cost would have the following effects on December 31, 2013: | |||||||
|
|
|
|
| |||
|
|
|
| Sensibility | |||
|
| (+) 1.0% |
| (-) 1.0% | |||
Effect on the Present Value of Obligations |
| 724,088 |
| (612,260) | |||
|
|
|
|
| |||
f) 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, besides the members selected by the Board of Directors and informed to the Human Resources, which selection may fall according to the seniority of the group. For the Board of Directors members in order to be eligible, it is necessary to exercise Executive Board functions. | |||||||
|
|
|
|
| |||
f.1) Local Program | |||||||
The Extraordinary Shareholders’ Meeting of Banco Santander held on February 3, 2010 approved the Share-Based Compensation Program - Units of Banco Santander (Local Plan), consisting of two independent plans: Stock Option Plan for Share Deposit Certificates - Units (SOP) and Long-Term Incentive Plan - Investment in Share Deposit Certificates - Units (PSP). | |||||||
|
|
|
|
| |||
On October 25, 2011, Banco Santander held the Extraordinary Shareholders’ Meeting, which approved the grant of the Incentive Plan Long Term (SOP 2014) - Investment in Certificates of Deposit Shares (Units) to certain directors and Management-level employees of the Bank and companies under its control. | |||||||
|
|
|
|
| |||
On 29 April, 2013, Banco Santander held an Extraordinary General Meeting, which approved the grant of the Banco Santander’s share-based compensation program - Stock Option Plan for Share Deposit Certificates - Units (SOP2013) and the Long-Term Incentive Plan - Investment in Share Deposit Certificates (PSP 2013). | |||||||
|
|
|
|
| |||
The characteristic of each plan are: |
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|
| |||
|
|
|
|
| |||
SOP Plan: it is a three-year Stock Option Plan by which new shares in Banco Santander are issued, as a manner of retaining the officers’ commitment to long-term results. The period for exercising the options starts on June 30, 2012 and is two years longer than the vesting period. The volume equivalent to 1/3 of the Units resulting from the exercise of options cannot be sold by the participant during a period of one year from the exercise date each Unit. | |||||||
|
|
|
|
| |||
Long-Term Incentive Plan - SOP 2014: it is a 3 year Stock Option Plan. The period for exercising comprises from June 30, 2014 until June 30, 2016. The number of Units exercisable by the participants will be determined according to the result of the determination of a performance parameter of the Bank: Total Shareholder Return (TSR) and may be reduced if failure to achieve the goals of reducing the Return on Risk Adjusted Capital (RORAC), comparison made between realized and budgeted in each year, as determined by the Board of Directors. Additionally, it is necessary that the participant remains in the Bank during the term of the Plan to acquire a position to exercise the corresponding Units. | |||||||
|
|
|
|
| |||
Plan Long Term Incentive - SOP 2013: it is a stock option plan with 3 years of duration. The period for exercising comprises from June 30, 2016 until June 30, 2018. The number of Units exercisable by the participants will be determined according to the result of measurement of a performance parameter of the Bank: Total Shareholder Return (TSR) and can be reduced, if not achieved the goals of reducing weighted Return on Assets by Risk (RoRWA), comparison between realized and budgeted in each year, as determined by the Board of Directors. Additionally, it is necessary that the participant remains in the Bank during the term of the Plan to acquire a position to exercise the corresponding Units. | |||||||
88
PSP Plan:Compensation Plan based on shares, with cycles of 3 years, promoting a commitment of executives with the long-term results.The Plan has as its object the payment of variable compensation by the Bank to Participants under the Variable Compensation and (i) 50% (fifty percent) consist of the delivery "Units", where which can not be sold during the term of 1 (one) year from the date of exercise and (ii) 50% (fifty percent) will be paid in cash, which may be used freely by the Participants (Variable Compensation), after deductions of all taxes, charges and withholdings. | |||||||||||||||||
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|
| |||
Long-Term Incentive Plan - PSP 2013: Compensation Plan based on shares with cycles of 3 years, promoting a commitment of executives with the long-term results. The Plan has as its object the payment of variable compensation by the Bank to Participants under the Variable Compensation 100% (one hundred percent) consist of the delivery "Units". | |||||||||||||||||
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|
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|
| |||
Fair Value and Plans Performance Parameters |
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| |||||||||||
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|
|
|
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|
| |||
For accounting of the Local Program plans, an independent consultant promoted simulations based on Monte Carlo methodology's, 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 period. | |||||||||||||||||
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| |||
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|
|
| PSP 2013 SOP 2013 | Plano SOP, PI12 - PSP, PI13 - PSP,PI14 - PSP(1) | SOP 2014(2) | |||||
TSR Position |
|
|
|
|
|
|
|
|
| % of Shares Exercisable | |||||||
1° |
|
|
|
|
|
|
|
|
| 100% |
| 50% |
| 100% | |||
2° |
|
|
|
|
|
|
|
|
| 75% |
| 35% |
| 75% | |||
3° |
|
|
|
|
|
|
|
|
| 50% |
| 25% |
| 50% | |||
4° |
|
|
|
|
|
|
|
|
| - |
| - |
| 25% | |||
(1) Associated with the TSR, the remaining 50% of the shares subject to exercise refer to the realization of Net Income vs. Budgeted Profit. | |||||||||||||||||
(2) The percentage of shares determined at the position of TSR is subject to a penalty according to the implementation of the Return on Risk Adjusted Capital (RORAC). | |||||||||||||||||
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|
| |||
For measurement of the fair value of the options in the plans based the following premises: | |||||||||||||||||
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|
|
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|
| |||
|
|
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|
|
| PSP - 2013 | Pl14 - PSP | PI13 - PSP | PI12 - PSP | ||||||
Method of Assessment |
|
|
| Binomial |
| Binomial |
| Binomial |
| Binomial | |||||||
Volatility |
|
|
|
|
| 40.00% |
| 57.37% |
| 57.37% |
| 57.37% | |||||
Probability of Occurrence |
|
|
| 60.27% |
| 37.59% |
| 26.97% |
| 43.11% | |||||||
Risk-Free Rate |
|
|
|
|
| 11.80% |
| 10.50% |
| 10.50% |
| 11.18% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
| SOP 2013 |
| SOP 2014 |
| Plans SOP | |||
Method of Assessment |
|
|
|
|
| Black&Scholes | Black&Scholes | Binomial | |||||||||
Volatility |
|
|
|
|
|
|
| 40.00% |
| 40.00% |
| 57.37% | |||||
Rate of Dividends |
|
|
|
|
|
|
| 3.00% |
| 3.00% |
| 5.43% | |||||
Vesting Period |
|
|
|
|
|
|
| 2 Years |
| 2 Years |
| 2.72 Years | |||||
Average Exercise Time |
|
|
|
|
| 5 Years |
| 5 Years |
| 3.72 Years | |||||||
Risk-Free Rate |
|
|
|
|
|
|
| 11.80% |
| 10.50% |
| 11.18% | |||||
Probability of Occurrence |
|
|
|
|
| 60.27% |
| 71.26% |
| 43.11% | |||||||
Fair Value for Shares |
|
|
|
|
|
|
| R$5,96 |
| R$6,45 |
| R$7,19 | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
The average value of shares SANB11 on June 30, 2014 is R$15,12 (06/30/2013 - R$13,38). | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
In the first half of 2014, daily pro-rata expenses in the amounting of R$689 (2013 - R$21,729) Bank and R$777 (2013 - R$22,307) Consolidated, relating to the plan of Purchase Option Certificate of Deposit Shares - Units (SOP) and credit of R$4,254 (2013 - R$4,139) Bank and R$4,449 (2013 - R$4,396) Consolidated, relating to plan for the Long-Term Incentive - Investment Certificate of Deposit Shares - Units (PSP). Also recorded in the period a gain with the oscillation of the shares's market value of the PSP Plan in the amount of R$1,236 (2013 - R$1,555) Bank and R$1,286 (2013 - R$1,656) in the Consolidated like personnel expenses. Expenses related to the SOP plans and PSP are recognized in respect of stockholders' equity and other obligations, respectively. | |||||||||||||||||
89
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
| Date of |
| Date of Expiry | |||
|
| Number of |
| Exercise |
| Concession | Employees |
| Commencement | of Exercise | |||||
|
| Units |
| Price | Year |
| Group |
| Exercise Period | Period | |||||
Balance Plans on 31/dec/2012 | 25,915,376 |
|
|
|
|
|
|
|
|
|
| ||||
Cancelled Options (PI13 - PSP) | (971,238) |
|
|
| 2011 |
| Executives |
| 02/03/2010 |
| 06/30/2013 | ||||
Cancelled Options (PI14 - PSP) | (86,465) |
|
|
| 2012 |
| Executives |
| 05/29/2012 |
| 06/30/2014 | ||||
Cancelled Options (SOP 2014) | (2,352,431) |
| 14.31 |
| 2011 |
| Executives |
| 10/26/2011 |
| 06/30/2016 | ||||
Granted Options (SOP 2013) | 12,240,000 |
| 14.43 |
| 2013 |
| Executives |
| 05/02/2013 |
| 06/30/2018 | ||||
Granted Options (ILP 2013) | 2,456,000 |
|
|
| 2013 |
| Executives |
| 08/13/2013 |
| 06/30/2016 | ||||
Exercised Options (PI13 - PSP) | (324,760) |
|
|
| 2011 |
| Executives |
| 02/03/2010 |
| 06/30/2013 | ||||
Cancelled Options (SOP 2013) | (1,197,255) |
| 14.43 |
| 2013 |
| Executives |
| 05/02/2013 |
| 06/30/2018 | ||||
Cancelled Options (ILP 2013) | (6,800) |
|
|
| 2013 |
| Executives |
| 08/13/2013 |
| 06/30/2016 | ||||
Cancelled Options (PSP 2013) | (18,197) |
|
|
| 2013 |
| Executives |
| 08/13/2013 |
| 06/30/2016 | ||||
Balance Plans on 31/dec/2013 | 35,654,230 |
|
|
|
|
|
|
|
|
|
| ||||
Cancelled Options (PI14 - PSP) | (32,304) |
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| 2012 |
| Executives |
| 05/29/2012 |
| 06/30/2014 | ||||
Cancelled Options (SOP 2014) | (193,040) |
| 14.31 |
| 2011 |
| Executives |
| 10/26/2011 |
| 06/30/2016 | ||||
Cancelled Options (SOP 2013) | (80,831) |
| 14.43 |
| 2013 |
| Executives |
| 05/02/2013 |
| 06/30/2018 | ||||
Cancelled Options (PSP 2013) | 215,432 |
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| 2013 |
| Executives |
| 08/13/2013 |
| 06/30/2016 | ||||
Balance Plans on 30/jun/2014 | 35,563,487 |
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| ||||
Plano SOP |
| 4,903,767 |
| 23.50 |
| 2010 |
| Executives |
| 3/2/2010 |
| 06/30/2014 | |||
Pl14 - PSP |
| 1,685,005 |
|
|
| 2012 |
| Executives |
| 05/29/2012 |
| 06/30/2014 | |||
SOP 2014 |
| 15,366,366 |
| 14.31 |
| 2011 |
| Executives |
| 10/26/2011 |
| 06/30/2016 | |||
SOP 2013 |
| 10,961,914 |
| 14.43 |
| 2013 |
| Executives |
| 2/5/2013 |
| 06/30/2018 | |||
PSP 2013 |
| 2,646,435 |
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| 2013 |
| Executives |
| 08/13/2013 |
| 06/30/2016 | |||
Total |
| 35,563,487 |
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f.2) Global Program | |||||||||||||||
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Long-term Incentive Policy | |||||||||||||||
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Santander Spain Board of Directors' meeting, held on March 26, 2008, approved the long-term incentive policy intended for the executives of Banco Santander Spain and the Santander Group companies (except for Banco Español de Crédito, S.A. - Banesto). This policy provides for compensation tied to the performance of the stock of Banco Santander Spain, as established in the Annual Stockholders’ Meeting. | |||||||||||||||
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Among the plans of Banco Santander Spain, Conglomerate Santander's executives in Brazil already participate in the Stock Plan Tied to Goals: multiyear plan paid in shares of Banco Santander Spain. This plan’s beneficiaries are the Executive Officers and other members of Top Management, as well as any other group of executives appointed by the Executive Board or the Executive Committee. | |||||||||||||||
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This plan involves three-years cycles for the delivery of shares to the beneficiaries. The first two cycles began in July 2007, with the first cycle lasting two years (PI09) and the other cycles with an average duration of 3 years (PI10/PI11/PI12/PI13 and PI14).Therefore from 2009 there the beginning of a new cycle and the closure of a previous cycle. The goal is to establish an appropriate sequence between the end of the incentive program, linked to the previous plan I-06, and successive cycles of this plan. | |||||||||||||||
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A maximum number of shares in each cycle is established for each beneficiary that continued to work in the Santander Spain Group during the plan. The goals whose attainment determine the number of shares granted, are defined by comparing the Santander Spain Group’s performance with the Benchmark Group’s performance (financial institutions) and are related to two parameters: TSR and Earnings/Benefit per Share (EPS) growth. | |||||||||||||||
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Each of these parameters has a weight of 50% in the determination of the percentage of shares to be granted. The number of shares to be granted is determined in each cycle by the goal attainment level on the third anniversary of the start of each cycle (except the first cycle, for which the second anniversary will be considered). | |||||||||||||||
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From the plan Pl12 the purpose determines the number of shares relate just one performance parameter, which has 100% weight in the percentage of shares to be distributed: the TSR Group. | |||||||||||||||
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Global Plan Fair Value |
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The plan assumes that the beneficiaries will not leave Banco Santander during the term of each plan.The fair value of the 50% linked to Banco Santander’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 thousands 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) are classified in decreasing order by calculating the weighted average and discounting the amount at the risk-free interest rate. | |||||||||||||||
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90
|
| Pl10 |
| Pl11 |
| Pl12 |
| Pl13 |
| Pl14 | ||
Expected Volatility (*) |
| 15.67% |
| 19.31% |
| 42.36% |
| 49.64% |
| 51.35% | ||
Annual Dividend Yield Based on Last Five Years | 3.24% |
| 3.47% |
| 4.88% |
| 6.33% |
| 6.06% | |||
Risk-free Interest Rate (Treasury Bond Yield -Zero Coupon) |
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Over the Period of the Plan |
| 4.50% |
| 4.84% |
| 2.04% |
| 3.33% |
| 4.07% | ||
(*) Calculated on the basis of historical volatility over the corresponding period (two or three years). | ||||||||||||
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In view of the high correlation between TSR and EPS, it can be considered (in a high percentage of cases) feasible to extrapolate that the TSR value is also valid for EPS. Therefore, it was initially determined that the fair value of the portion of the plans linked to the Bank’s relative EPS position, of the remaining 50% of the options granted, was the same as that of the 50% corresponding to the TSR. This valuation is reviewed and adjusted on a yearly basis, since its refers to a non-market condition. | ||||||||||||
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| Date of |
| Date of Expiry | ||
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| Number |
| Concession | Employees |
| Commencement | of Exercise | ||||
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| of Units |
| Year |
| Group |
| Exercise Period | Period | |||
Balance Plans on 31/dec/2012 |
| 1,070,122 |
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Cancelled Options (PI13) |
| (14,209) |
| 2010 |
| Executives |
| 07/01/2010 |
| 07/31/2013 | ||
Cancelled Options (PI14) |
| (676,228) |
| 2011 |
| Executives |
| 07/01/2011 |
| 07/31/2014 | ||
Balance Plans on 31/dec/2013 |
| 379,685 |
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Plan I14 |
| 379,685 |
| 2011 |
| Executives |
| 07/01/2011 |
| 07/31/2014 | ||
Balance Plans on 30/jun/2014 |
| 379,685 |
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In the first half of 2014, pro-rata expenses were registered in the amount of R$789 (2013 - R$2,066) Bank and R$813 (2013 - R$2,135) Consolidated, related to the costs of the cycles mentioned, for the totaling of the Global Program. | ||||||||||||
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Plans do not cause dilution of the capital of the Bank, since they are paid in shares of Banco Santander Spain. | ||||||||||||
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f.3) Referenced Variable Remuneration in Shares |
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Banco Santander Spain's General Shareholders Meeting, held on June 11, 2010, approved the new policy relating to executive compensation through the payment plan referenced in variable remuneration shares to the Group companies, including Banco Santander. This new policy, with adjustments applicable to Banco Santander, was approved by the Nominating Committee and Remuneration and the Board of Directors on February 2, 2011. | ||||||||||||
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The plan's objectives are: (i) to align the compensation program with the principles of the “Financial Stability Board” (FSB) agreed upon at the G20; (ii) to align Banco Santander’s interests with those of the plan’s participants (to achieve the sustainable and recurring growth and profitability of Banco Santander’s businesses and to recognize the participants’ contributions); (iii) to allow the retention of participants; and (iv) to improve Banco Santander’s performance and defend the interests of shareholders through a long-term commitment.
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The purpose of the plan is the cash or shares payment, as shown below, owed by Banco Santander to the plan’s participants pursuant to the bank’s compensation policy, based on the future performance of the bank’s shares. | ||||||||||||
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The payment of share-based variable remuneration is with in the limits of the overall management compensation approved by Banco Santander's General Ordinary Meeting.
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The total number of shares on which the compensation plan is based will be settled in three installments and equally allocated to each of the three years following the reference year. | ||||||||||||
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On December 21, 2011, the Board of Directors approved the proposed new incentive plan (deferred) for payment of the variable remuneration of directors and certain employees, which will be subject to resolution of the Extraordinary General Meeting on February 7, 2012. | ||||||||||||
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On December 19, 2012, the Board of Directors approved the proposed new incentive plan (deferred) for payment of the variable remuneration of directors and certain employees, which will be subject to resolution of the Extraordinary General Meeting on February 15, 2013. | ||||||||||||
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On April 24, 2013, the Board of Directors approved the proposed new incentive plan (deferred) for payment of the variable remuneration of directors and certain employees, which was approved in Extraordinary General Meeting of June 3, 2013. | ||||||||||||
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This proposal are certain requirements for deferred payment of part of the future variable compensation due to its managers and other employees, given the financial basis for sustainable long-term adjustments in future payments due to the risks assumed and fluctuations in cost of capital. | ||||||||||||
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The plan is divided into 3 programs: |
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a) Supervised Collective - Participants of the Executive Committee and other executives who take significant risks in the Bank and responsible for the control areas. The deferral will be half in cash, indexed to 100% of CDI and half in shares. On first half of 2014, were not recorded expense (2013 - credit R$8,713) in the Bank and (2013 - credit R$9,710) in the Consolidated. | ||||||||||||
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b) Collective Unsupervised - Statutory Directors - not part of the Statutory Director's Collective Supervised ", the amount deferred will be paid 100% in cash, linked to the future performance of Units "SANB11". On first half of 2014, there were recorded expenses of R$139 (2013 - R$317) in the Bank and R$179 (2013 - R$317) in the Consolidated, regarding the provision of the plan and was recorded gain with the oscillation of the share market value of the plan in the amount of R$2,506 (2013 - R$8.080) in the Bank and R$2,508 (2013 - R$8.080) in the Consolidated as personnel expenses. | ||||||||||||
91
c) Unsupervised Collective - Employees - managerial employees and other employees of the organization that will be benefited from the deferral plan.The deferred amount will be paid 100% in cash, indexed 110% to 120% of CDI. For first half of 2014, there was a credits of R$691 (2013 - R$617) in the Bank and R$661 (2013 - R$614) at Consolidated. | ||||||||||||||
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35. Risk Management Structure | ||||||||||||||
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Banco Santander in Brazil follows the model of the Banco Santander Spain, which is based on a prudent risk management and the definition of risk appetite on the part of senior management in view of the local regulator and international good practices, aiming to protect the capital and ensuring the profitability of business. The Bank is exposed to the following main risks in its operations: | ||||||||||||||
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- Credit risk and exposure to loss in the case of total or partial default by customers or counterparties in the fulfillment of their financial obligations to the Banco Santander. Credit risk management seeks to establish strategies, besides setting limits, including the analysis of exposure and trends and the effectiveness of credit policies. The aim is to maintain a risk profile and adequate minimum profitability which compensates for the estimated default risk of customers and portfolios, as established by the Executive Committee. | ||||||||||||||
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- Market risk is exposure to risk factors including interest rates, exchange rates, commodities prices, stock market prices and other values, according to the type of product, the volume of operations, terms and conditions of the agreement and underlying volatility. Market risk management includes practices of measuring and monitoring the use of limits that are pre-set by internal committees, of the value at risk of the portfolios, of sensitivity to fluctuating interest rates, of exposure to foreign exchange rates, of liquidity gaps, among other practices which the control and monitoring of the risks which might affect the position of Banco Santander portfolios in the different markets in which the bank operates. | ||||||||||||||
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- Operational risk is the risk of loss resulting from failures or inadequacies in internal processes, people and systems or those come from external events. Banco Santander's Operational Risk Control and Management aim: internal controls environment efficiency, the prevention, mitigation and reduction of the losses and events from operational risk and also the maintenance of the business continuity. | ||||||||||||||
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- Compliance risk is the legal risk or regulatory sanctions, financial loss, or damages to the Bank reputation as a result of failure to comply with laws, regulations, codes of conduct and good banking practice. Compliance risk management has a proactive focus on this risk,policies,implementation of process, including monitoring, training, and appropriate communication of rules and laws to be applied to each businesses area of the Banco Santander. | ||||||||||||||
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- Reputational risk is the exposure arising from negative public opinion, irrespective of whether this opinion is based on facts or merely on public perception. | ||||||||||||||
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Risk management at Banco Santander is based on the following principles: |
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- Independence of the risk function in relation to business. The responsible for the Bank's Risk Division reports directly to the Executive Committee and the Council; | ||||||||||||||
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- Involvement of Senior Management in decision-making; |
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- Consensus for decision making on credit operations between the areas of Risk and Business. | ||||||||||||||
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- Collegiate decision-making, including the branch network, with the aim of encouraging diversity of opinion and avoid assigning individual decisions; | ||||||||||||||
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- The use of statistical tools for estimating default including internal rating, credit scoring and behavior scoring, RORAC (Return on Risk Adjusted Capital), VaR (Value at Risk), economic capital, scenario assessment, among others; | ||||||||||||||
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- Global approach, including the integrated treatment of risk factors in the business departments and the use of the concept of economic capital as a consistent metric for risk undertaken and for assessing management; and | ||||||||||||||
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- Definition of policies and procedures, which constitute the basic Corporate Risk Policy, which governs the activities and processes of risk. | ||||||||||||||
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Maintaining a risk profile is medium-low, and low volatility through: |
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- This is done by diversifying the portfolio, limiting the concentrations of customers, groups, sectors, products or geographic regions; | ||||||||||||||
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- Maintenance reducing the complexity level of market operations; and |
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- Careful monitoring of risks to prevent possible deterioration of the portfolios. | ||||||||||||||
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Corporate Governance of the Risk Function |
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The structure of the Risk Committees of Banco Santander is defined according corporate standards, and the weekly meetings, has the following responsibilities: | ||||||||||||||
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- Ensure that local policies are implemented and followed in accordance with corporate standards; | ||||||||||||||
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- To authorize the use of local management tools and risk models and to be familiar with the result of their internal validation; | ||||||||||||||
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- Ensure that the activities of Banco Santander are being performed according to the tier of risk tolerance previously approved by the Banco Santander Spain; | ||||||||||||||
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- To be aware of, assess and adhere to any timely observations and recommendations that come to be made by the supervisory authorities in the fulfillment of their duties; and | ||||||||||||||
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- To resolve transactions that are not within the delegated scope to the other tiers of the administration and to determine the limits of pre-classification global limits of risk in favor of economic groups or in relation to the exposure by risk type. | ||||||||||||||
92
The Executive Risk Committee has delegated part of its assignments to the Risk Committees, which are structured by business category, type and sector risk.The risk function of the Banco Santander is executed by the Executive Vice-Presidency of Risk, which is independent from the business areas, and reports directly to the Chairman of the Banco Santander being fundamental to have an independent vision and control risk. | ||||||||||||||||||||||||||||
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The Executive Vice-Presidency for Risk is divided into areas with two types of approach: | ||||||||||||||||||||||||||||
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- Methodology and control, which adapts the policies, methodologies and the risk control systems; and | ||||||||||||||||||||||||||||
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- Business risk, focused on risk management and the establishment of risk policies for each business operation conducted by Banco Santander in Brazil. | ||||||||||||||||||||||||||||
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Credit Risk Management |
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The role of the credit and market risk department is to develop policies and strategies for credit risk management in accordance with the risk appetite determined by the Executive Committee. | ||||||||||||||||||||||||||||
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Besides, it is responsible for the control and monitoring system used in credit and market risk management. These systems and processes are applied in the identification, measurement, control and reduction of exposure to credit risk in individual operations or those grouped together by similarity. | ||||||||||||||||||||||||||||
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The specialization of the risk function is based on the type of client and the process of risk management, making a distinction between two segments: individualized customers and standardized (standardized management). | ||||||||||||||||||||||||||||
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- Customers under individual management: customers from the wholesale sector, financial institutions and certain companies. Risk management is executed by an assigned risk assessor. The customer is placed in a portfolio by a risk assessor who draws up the analyses, forwards the same to the committee and monitors the progress of the customer; and | ||||||||||||||||||||||||||||
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- Customers under standardized management: individuals and companies not classified as individualized customers. The management of these risks is based on automated decision-making and internal risk assessment models, backed up by business regulations and teams of expert analysts to deal with exceptions. | ||||||||||||||||||||||||||||
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Collection of documentation and information necessary to complete the analysis of the risk involved in credit operations, the identification of the borrower, counterparty, the risk involved in the operations, the classification of the degree of risk in different categories, the granting of credit, periodic assessments risk tiers; It`s procedures are applied by the Bank to determine the volumes of guarantees and provisions necessary for the credit operations are conducted in accordance with current regulations and safety due. Policies, systems and procedures used are reassessed annually to ensure they are consistent with the needs of risk management and the current market scenarios. | ||||||||||||||||||||||||||||
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The credit risk profile undertaken by Banco is characterized by the diversification of customers and the large volume of retail operations. Macroeconomic factors, market conditions, sector and geographic concentration, customer profiles and economic outlook are also assessed. | ||||||||||||||||||||||||||||
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Structure of Capital Management |
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Capital management considers the regulatory and economic levels. The objective is to achieve an efficient capital structure, meeting the requirements of the Central Bank and to maximize value creation to the stockholders. | ||||||||||||||||||||||||||||
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From an economic view, in accordance to Internal Capital Adequacy Assessment Process (Basel III), the Bank uses a measurement model of economic capital in order to get a more precise risk management and allocation of capital to various units of Santander Conglomerate, wich allows a performance assessment, considering the solvency levels agreed by Banco Santander Spain. | ||||||||||||||||||||||||||||
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In order to properly manage the Bank’s capital, it is essential to estimate and analyze future needs, in anticipation of the various phases of the business cycle. Forecasts of economic and regulatory capital are made based on financial forecasts (Balance Sheet, Income Statements, etc.) and macroeconomic scenarios. These forecasts are used by the Bank as a reference to the contingency plan (securitization, sale of assets, raising capital through issuing shares, subordinated debt and hybrid instruments, etc.) required to achieve its capital targets. | ||||||||||||||||||||||||||||
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a) Rating Models |
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The Banco Santander employs its own internal rating models to measure the credit quality of a customer or a transaction. Each rating is related to the probability of default or non-payment, established using the bank´s past experience, except for certain portfolios classified as low default portfolios. The ratings are used in the approval process and monitoring of risk. | ||||||||||||||||||||||||||||
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The Global rating tools are applied to those segments of sovereign risk, financial institutions and global wholesale customers (GBM), with centralized management in the Bank. These tools generate the rating of each client, which is obtained from an automatic module or quantitative, based on balance sheet ratios or macroeconomic variables, supplemented by the judgment of the analyst. | ||||||||||||||||||||||||||||
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In the case of private companies and institutions portfolio, was defined a methodology to develop a single rating for each country, based on the same modules as the previous ratings: quantitative or automatic (in this case analyzing the credit behavior of a sample of clients in relation their financial statements), or qualitative review by an analyst and final adjustments. | ||||||||||||||||||||||||||||
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The ratings assigned to customers are reviewed periodically, incorporating the new financial information and experience developed in the banking relationship. The frequency of revisions is high in the case of customers who reach certain tiers in automatic warning systems and customers classified as special monitoring. Their own rating tools are reviewed for qualifications awarded by them are progressively cleared. | ||||||||||||||||||||||||||||
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For customers with standardized management of both companies as natural persons, there are scoring tools that automatically assign a score to the proposed transactions. | ||||||||||||||||||||||||||||
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These systems are complemented loan approval with performance rating models, which allow for greater predictability of risk assumed and are used for preventive activities and trading. | ||||||||||||||
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b) Losses and Credit Cost | ||||||||||||||
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The Bank periodically estimates loss related to credit risk and compares effective loss to previously estimated values. Periodic analyses of control are carried out with the aim of maintaining control over the updated credit risk and exceptions to open or renegotiate certain operations, and can also increase the level of assurance when needed. | ||||||||||||||
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In order to complement the use of the admission and rating models, the Banco Santander uses other measures to facilitate prudent and effective credit risk management, based on the identified loss. Credit cost is measured mainly using indicators such as the variation in credit loss provisions, non-performing loans under recovery and lowered net credit. | ||||||||||||||
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Reports on risk management are submitted to the Board of Directors, which ascertains whether or not risk management is in line with Santander Conglomerate policies and strategies. Simulations of risk situations are carried out in order to assess the need for reviewing pre-established policies and limits. | ||||||||||||||
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All information on risk management structure and procedures is stored at Banco Santander and is available to the Bacen and other regulatory entities. Furthermore, information on credit risk management is published in the quarterly financial statements in line with principles of transparency. | ||||||||||||||
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c) Credit Risk Cycle | ||||||||||||||
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Banco Santander holds a global view of the bank's credit portfolio throughout the various phases of the risk cycle, with a tier of detail sufficient enough to be able to assess current risks and eventual shifts. This mapping is monitored by the Board of Directors and the Executive Committee, which establish the risk policies and procedures, the limits and delegation of powers, in addition to approving and supervising operations in the sector. | ||||||||||||||
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The management process consists of identifying, measuring, assessing, controlling, negotiating and deciding upon the risks incurred in the bank´s operations. This cycle is made up of three distinct phases: | ||||||||||||||
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- Pre-sale: includes processes of planning, target setting, calculation of the Banco Santander´s risk appetite, approval of new products, risk analysis and the credit rating process and limit setting; | ||||||||||||||
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- Sale: this is the decision-making phase for pre-classified and specific transactions; and | ||||||||||||||
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- Post-sale: includes processes of risk monitoring, measurement and control, and recovery process management. | ||||||||||||||
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Risk Planning and Limits | ||||||||||||||
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This process identifies the bank´s interest, evaluating business proposals and risk position. In the global risk limit plan, a previously agreed document is defined to integrate the management of the balance sheet and the inherent risks. | ||||||||||||||
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The limits are based on two basic structures: customers/sectors and products. | ||||||||||||||
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In individualized risks, the most basic tier is the customer for which are set individual limits (pre-classification). | ||||||||||||||
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For large economic groups is used a pre-classification model based on a system of measurement and monitoring of economic capital. For the corporate segment, we use a pre-classification model simplified to customers that meet certain requirements (knowledge, rating, etc.). | ||||||||||||||
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In the case of risks with customers with similar characteristics, risk limits are designed by credit management programs (PGC), a document agreed upon by the business areas and risks and approved by the Risk Committee or its Committees Delegates, which contains the expected results of the business in terms of risk and return, beyond the limits that are subject to the respective activity and risk management. | ||||||||||||||
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Risk Analysis | ||||||||||||||
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Risk analysis is a pre-requisite for the approval of loans to customers and consists of examining the ability of the counterparty´s to meet its contractual commitments to Banco Santander, which includes analysis of the customer´s credit quality, its risk operations, its solvency, the sustainability of its business, and the expected return taking the risk undertaken into account. | ||||||||||||||
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This risk analysis is done at least annually and may be revised more frequently if the risk profile of the client request (due warning systemas visits centralized or manager or credit analyst) or if there are specific operation outside the previous classification. | ||||||||||||||
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Transaction Decision-Making | ||||||||||||||
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The purpose of the transaction decision-making process is to analyze and to adopt solutions for the same, taking into consideration the risk appetite and any important factors for counterbalancing risk and return. | ||||||||||||||
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Banco Santander uses, among others, the RORAC methodology for the analysis and pricing in the decision-making process on transactions and business. | ||||||||||||||
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Risk Monitoring and Control | ||||||||||||||
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In addition to the functions carried out by the Internal Audit Area, the Executive Vice-Presidency for Risk has its own risk monitoring area for the control of credit quality, formed by a teams with specific resources and responsibilities. | ||||||||||||||
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This monitoring area is based on an ongoing process of observation, which ensures the early detection of any events that might arise in the development of risk, the transactions, the customers and their environment, so that preventive action may be taken. This monitoring area is specialized by customer segment. | ||||||||||||||
94
For this, we designed a system called "Special Surveillance Firms" (FEVE, initials in Spanish) that distinguishes four categories based on the level of concern raised by the circumstances observed (extinguish, secure, reduce and monitor).Inclusion of a company in FEVE System does not mean that a default has occurred, but it is advisable to adopt a specific policy with it, allocating a responsible and setting the deadline for implementation of the policy. Customers classified in FEVE are reviewed at least every six months or every quarter in the case of customers most severe categories. The classification of a company in FEVE derives from the actual monitoring, the review conducted by the internal audit manager responsible for the decision of the company or the triggering of the automatic warning system. | ||||||||||||||
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In relation to standardized customer risk, the key indicators are monitored in order to detect any variations in the performance of the credit portfolio, with respect to the forecasts made in the credit management programs. | ||||||||||||||
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d) Risk Control | ||||||||||||||
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Its function is to obtain a global view of the Banco Santander´s credit portfolio throughout the various phases of the risk cycle, with a tier of detail sufficient enough to be able to assess the current circumstances and eventual shifts. | ||||||||||||||
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Changes to the bank´s risk exposure are controlled in an ongoing and systematic manner. The impacts of these changes in certain future situations, both those of an exogenous nature and those arising from strategic decisions are assessed with the aim of establishing measures that place the profile and the amount of the credit portfolio within the parameters established by Executive Committee. | ||||||||||||||
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e) Provisions | ||||||||||||||
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Banco Santander determines provisions in accordance with the current legislation of the Bacen, in accordance with CMN Resolutions 2.682/1999, 2.697/2000 and Bacen 2.899/2000, which classifies credit transactions by rating and determines the minimum percentage of provision required (Note 8.e). | ||||||||||||||
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f) Regulatory Capital | ||||||||||||||
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The capital management of Banco Santander is performed for both regulatory capital and for economic capital. The management of regulatory capital is based on the analysis of "ratios" of capital, using criteria defined by the Central Bank. Banco Santander presents an active capital management including securitizations, sale of assets and portfolios, emissions of preferred shares and hybrid instrument. The evaluation model of economic capital is to ensure the availability of capital to support all risks of their economic activity in the various business units, in different scenarios, with the solvency levels agreed by the Banco Santander. | ||||||||||||||
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g) Credit Recovery | ||||||||||||||
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The Executive Board Recovery works in the collection and recovery of loans in the Bank's Wholesale and Retail segments and reports directly to the Presidency. Strategies and channels of operation are defined according to the days in arrears and the arrears, resulting in a map of Liability. In the first days of defaut adopt a more intensified recovery model, with specific strategies, with closer internal monitoring. Call centers, including the protection agencies credit, collection of letters by the banking agency and are used during this stage, in order to recover customers. In larger delay and expressive values tracks, also in the Wholesale segment, come into specialized internal teams in restructuring and recovery of loans with direct management of default customers share. Lower values or even more severe delays have made the recovery efforts through outsourced administrative or judicial, according to internal criteria, which are paid according to the successful recovery of overdue amounts. | ||||||||||||||
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Statistical tools are used, as the behavior score, to study the behavior of clients and strategize more assertive recovery. These models seek to measure the probability of becoming defaulted customersadjusting collection efforts, aimed at business recovery and cost reduction, for the recovery of business and reduce costs and achieve the goals. Customers with greater probability of payment are classified as low risk customers and with low probability of payment are classified as high risk with its collection more intensified. | ||||||||||||||
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The channels of operation are defined as responsibility Map, using the time value of default versus risk value - besides other characteristics used to compose the creation of strategies. | ||||||||||||||
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Often are executed credit portfolio sales of bad debts run. These credit portfolio sales happen periodically through an auction process in order to best market opportunities. | ||||||||||||||
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h) Environmental Risk | ||||||||||||||
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Environmental risk policy has been practiced for the Wholesale Bank that, in addition to lending, provides analysis of environmental issues in accepting clients. The environmental risk area analyzes the environmental management of the checking account items such as contaminated areas, deforestation, labor violations and other problems for which there is a risk of imposition of penalties. | ||||||||||||||
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A specialized team training in Biology, Chemical Engineering and Engineering Health and Safety monitors the environmental practices of customers, while our financial analysts assess the damage that unfavorable environmental conditions may cause the financial condition and the guarantees offered by the client, among other effects. Our experience shows that the company cares for the well-being of its employees and the environment in which it operates normally have a more efficient and therefore more likely to honor their commitments and generate good business. | ||||||||||||||
95
i) Other Information | ||||||||||||||
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(i) The management of regulatory capital is based on the analysis of the adequacy of capital through the basel index using the criteria defined by the Central Bank. The goal is to achieve efficient capital structure considering capital costs, regulatory requirements, goals of rating and return to investors. | ||||||||||||||
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(ii) In operations involving the sale or transfer of financial assets, the conditions and characteristics of the same are analyzed for the appropriate assessment and classification with regard to risk management and retention of profit. | ||||||||||||||
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(iii) Further details of the credit risk management structure may be found in the report available on the site www.santander.com.br/ri. | ||||||||||||||
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36. Corporate Restructuring | ||||||||||||||
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We implemented various social movements in order to reorganize the operations and activities of entities according to the business plan of the Conglomerate Santander. | ||||||||||||||
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a) Sale of Santander Securities Services Brasil Distribuidora de Títulos e Valores Mobiliários S.A. (current corporate name of CRV Distribuidora de Títulos e Valores Mobiliários S.A., subject to the approval of the Bacen) | ||||||||||||||
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On June 19, 2014, the Company published Notice to the Market, in order to inform to the shareholders that preliminary documents were executed containing the main terms and conditions related to the sale of the operation of qualified custody business, currently performed by Santander Brazil, and all of the shares issued by Santander Securities Services Brasil Distribuidora de Títulos e Valores Mobiliários S.A. (current corporate name of CRV Distribuidora de Títulos e Valores Mobiliários S.A., subject to the approval of the Bacen), a subsidiary of Santander Brazil. The Transaction is carried out within the context of an alliance abroad, among Banco Santander, S.A., funds of Warburg Pincus LLC, a company leader in the private equity sector, and the Singapore sovereign fund Temasek, involving the qualified custody business. Pursuant to the terms of the alliance, Santander Spain will hold 50% of a holding company that will integrate the custody divisions. | ||||||||||||||
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The conclusion of of the sale is subject to the satisfaction of certain customary conditions precedent for similar transactions, including the conclusion of definitive agreements and obtaining the necessary authorizations. | ||||||||||||||
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b) Sale of the Investment Fund Management and Managed Portfolio Operations, Currently Developed by Santander Brasil Asset | ||||||||||||||
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On December 17, 2013, was concluded the operation involving the sale of its asset management business, by Banco Santander current developed by Santander Brasil Asset ("Transaction"), as informed in the Material Fact dated May 30, 2013, the Transaction falls within the context of a partnership abroad between Banco Santander Spain and the world’s leading private equity companies, Warburg Pincus and General Atlantic., which aims to promote the global growth of its unit management of third party funds.This operation generated a gain to Banco Santander of R$2,008 million before taxes (taxes effect of R$803 million). | ||||||||||||||
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Within the scope of the Transaction, Banco Santander disposal all Santander Brasil Asset shares, of which, during Transaction, the asset management activity then performed by Santander Brasil Asset, was segregated from third-party fund allocation activity into a new asset manager created for that purposes (“Asset Manager”). | ||||||||||||||
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As part of the Transaction, was entered into between the Asset Manager and Banco Santander a trade agreement establishing the general rules for the management and distribution of products and services to Banco Santander's customers. Banco Santander will remain as manager and dispenser of funds, receiving remuneration consistent with market practices. | ||||||||||||||
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c) Segregation of Equity Investments of the Investments in Companies that Provide Services Complementary to Those Provided by Financial Institutions | ||||||||||||||
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In order to segregate the equity investments in entities that provide complementary services to the financial services Conglomerate Santander, were made the following acts: | ||||||||||||||
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• Acquisition by Santander Serviços shares of the company TecBan held by Santusa as sale and purchase agreement entered into between the parties on January 21, 2013. The acquisition, corresponding to 20.82% of the share capital of TecBan, is subject to authorization by the Bacen pursuant to Resolution 4.062/2012, and effective on March 27, 2013. | ||||||||||||||
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d) Other Corporate Movements |
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We also performed the following corporate actions: |
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• Was celebrated on June 21, 2013 an agreement with the objective of Carsales.com participation in Webmotors S.A.’ capital (Transaction), a company indirectly controlled by Banco Santander, for R$180,000. The Transaction will be implemented through the acquisition by the Carsales of new shares of Webmotors S.A.’ capital, representing 30% of all capital. This transaction generated a gain in Santander Serviços amounting R$119,961 related to the change in the percentage shareholding in Webmotors S.A. due to the entry of Carsales in its capital. | ||||||||||||||
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• Disposal on November 22, 2013 of all shares of MS Participações Societárias S.A., by Banco Santander, for Capital Riesgo Global, S.C.R. de Regimén Simplificado, S.A., followed by disposal on December 28, 2013 by Capital Riesgo Global, S.C.R. de Regimén Simplificado, S.A., of investment for Elincasiol, S.L. | ||||||||||||||
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• On February 28, 2014, Banco Santander has exercised a call option right to acquire 97,669 common shares of BW Guirapá I S.A., reaching the total of 252,311 shares. | ||||||||||||||
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• Acquisition on 7 March 2014, by Webmotors S.A., of 100% of the capital stock of KM Locanet Ltda.- ME (“Compreauto”). | ||||||||||||||
96
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37. Subsequent Events | ||||||||||||||
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a) Acquisition by iZettle do Brasil Meios de Pagamento S.A. (iZettle do Brasil) | ||||||||||||||
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On July 18, 2014, Banco Santander now holds 50% of the total corporate capital of iZettle do Brasil, through a capital contribution to the company in the amount of R$17,240 thousand, which was authorized by the Brazilian Central Bank on June 3, 2014. | ||||||||||||||
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iZettle do Brazil is a Swedish source company that operates in the payment mechanisms market, with the development and distribution of payment products and solutions. This partnership was made in the context of a global agreement in December 2012 between Banco Santander Spain and iZettle in Sweden in order to create a joint and coordinated action in markets where the Santander Group operates, among them: Spain, Brazil, the UK and Mexico. | ||||||||||||||
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One of the solutions developed by iZettle allows merchants to accept card payments through smart phones or tablets, by using a free appliance to a card reader application, converting the smart phones or tablets into a POS (point of sale - terminal accepting credit cards / debit card). The goal of the partnership is to enable Banco Santander to operate in the Brazilian market of card payments with the focus on micro merchants and individuals with an innovative, secure and aggregate supply to a simple solution. | ||||||||||||||
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b) New Shareholders' Agreement of TecBan | ||||||||||||||
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On July 18, 2014 it was published a Notice to the Market with a view to inform that the country’s leading retail banks, among them Banco Santander, by means of one of its subsidiaries, (“Shareholders”), executed on July 17, 2014 a new Shareholders’ Agreement of TecBan (“New Shareholders’ Agreement”). The New Shareholders’ Agreement establishes that, within approximately 4 years from its effective date, the Shareholders shall have replaced part of their own external-access Automated Teller Machines (“ATMs”) with ATMs from Rede Banco24Horas, which are and will continue to be managed by TecBan, thus enhancing the efficiency, quality and points of services to their clients. The effectiveness of the Shareholders’ Agreement is subject to certain conditions precedent, among which its approval by the competent regulatory body. | ||||||||||||||
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c) Acquisition by Getnet Tecnologia em Captura e Processamento de Transações H.U.A.H. S.A. (Getnet) | ||||||||||||||
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On April 7, 2014, it was announced to the market, through material fact, that Banco Santander and its controlled company, Santander Getnet, executed a Share Purchase Agreement, on April 4, 2014, for the acquisition, by Santander Getnet, of 100% of the voting and total corporate capital of Getnet, a current partner of Banco Santander in developing acquiring services and card processing activities. | ||||||||||||||
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The transaction will reinforce the strategy and the potential growth of our acquiring business, enabling (a) greater flexibility in managing the business, especially in terms of the necessary investments and the definitions regarding the commercial strategy to be adopted, (b) scale gains, reduction of costs per transaction and additional synergies expected from the integration of operational and commercial structures. | ||||||||||||||
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According to the Share Purchase Agreement, the closing and implementation date of the acquisition is subject to verification of certain usual precedent conditions for similar transactions. All the conditions were approved by the regulators, including the prior approval by the Administrative Economic Defense Council (CADE) on June 3, 2014, and by the Brazilian Central Bank on July 23, 2014. On July 31, 2014 Banco Santander intends to conclude the Getnet acquisition and the corporate restructuring indicated on the material fact, in which Banco Santander will own 88.5% of the total corporate capital of Santander Getnet. | ||||||||||||||
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d) Investment Agreement between Banco Santander and Banco Bonsucesso S.A. (Banco Bonsucesso) | ||||||||||||||
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On July 30, 2014 Banco Santander, through its controlled company Aymore CFI, and Banco Bonsucesso entered into an Investment Agreement whereby agreed to form an association in payroll credit card loan segment and payroll loans ("JV"). | ||||||||||||||
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38. Other Information |
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a) The co-obligations and risks on guarantees provided on behalf of customers, recorded in off balance accounts, amounted to R$34,224,931 (06/30/2013 - R$30,356,598) at the Bank and R$33,498,106 (06/30/2013 - R$30,356,598) at the Consolidated. | ||||||||||||||
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b) The total amount of Santander Conglomerate investment funds and assets under management is R$4,297,182(1)(06/30/2013 - R$122,347,583), and the total amount of investment funds and assets managed is R$131,956,112 (06/30/2013 - R$134,001,066) recorded as off balance accounts. | ||||||||||||||
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(1)The reduction compared to June 30, 2013 is due to the sales operations management investment funds and managed portfolios mentioned in Note 36.a. | ||||||||||||||
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c) Bank and Consolidated, the insurance contracted by Banco Santander in effect on June 30, 2014 and 2013, the global bank, fires, vehicles and other, have coverage amount of R$1,300,039 and global bank, was hired insurance with coverage amount of R$224,752, may be used alone or together, provided they do not exceed the contracted amount. | ||||||||||||||
97
d) Restricted operations were as follows: |
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| Bank/Consolidated |
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| Assets |
| Income |
| Assets |
| Income |
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| (Liabilities) | (Expenses) | (Liabilities) | (Expenses) | |||
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| 01/01 to |
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| 06/30/2014 | 06/30/2014 |
| 06/30/2013 |
| 06/30/2013 | |
Restricted Operations on Assets |
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Lending Operations |
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| 10,100 |
| 100 |
| 7,376 |
| 251 | ||
Liabilities Restricted Operations on Assets |
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Deposits |
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Net Income |
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There are no default operations, court challenges on active operations or linked to the funds raised for applying these operations. | ||||||||||||||
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e) Obligation Offset and Settlement Agreements - CMN Resolution 3.263/2005 - Banco Santander has an obligation offset and settlement agreement within the ambit of National Financial Institutions (SFN), entered into with individuals and legal entities which may or may not be members of SFN, resulting in improved assurance of financial settlement, with the parties with which it has this type of agreement. These agreements establish that payment obligations with Banco Santander, arising from loans and derivative transactions, in case of default of the counterparty, will be offset against payment obligations of Banco Santander with the counterparty. | ||||||||||||||
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f) Other Obligations - 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, classified as operating lease. Total future minimum payments of non-cancelable operating leases as of June 30, 2014 is R$2,415,655, of which R$681,485 up to 1 year, R$1,549,330 from 1 year to up to 5 years and R$184,840 after 5 years. Additionally, Banco Santander has contracts for a matures indeterminate, totaling R$1,551 monthly rent corresponding to the contracts with this feature. Payment of operating leases recognized as expenses in the first half 2014 were R$347,307 (2013 - R$338,875). | ||||||||||||||
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Monthly rental contracts will be adjusted on an annual basis, as per prevailing legislation, at Market General Price Index (IGPM) variation. The lessee is entitled to unilaterally rescind the agreement, at any time, accordance with contractual clauses and legislation. | ||||||||||||||
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**** | ||||||||||||||
98
(Convenience Translation into English from the Original Previously Issued in Portuguese) | ||||||||||||||||
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Executive’s Report of Financial Statements |
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For purposes of compliance with article 25, § 1, VI, Exchange Commission (CVM) Instruction 480, of December 7, 2009, the Executive of Banco Santander (Brasil) S.A. (Banco Santander) (Company) state that discussed, reviewed and agreed with the Banco Santander's Financial Statementsfor the period ended June 30, 2014, theFinancial Statements prepared in accordance with BRGAAP and the documents that comprise it, being: Management Report, balance sheets, income statements, statements of changes in stockholders' equity, cash flow statements, statements of value added and notes to the financial statements, prepared in accordance with accounting practices, established by Brazilian Corporate Law, in conjunction with standards set forth by the National Monetary Council (CMN), the Central Bank of Brazil, and the standard chart of Accounts for Financial Institutions (COSIF) and other applicable laws and regulations. These financial statements and the documents that comprise it, have been the object of an unqualified opinion of the Independent Auditors and the Audit Committee of the Company. | ||||||||||||||||
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Members of Companies’ Executives on June 30, 2014: |
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CEO |
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Jesús Maria Zabalza Lotina |
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Vice-President Senior Executive Officer |
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Conrado Engel |
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José de Paiva Ferreira |
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Vice-President Executive Officer and Investor Relations |
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Carlos Alberto López Galán |
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Vice-President Executive Officer |
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Carlos Rey de Vicente |
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Ignacio Dominguez-Adame Bozzano |
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João Guilherme de Andrade So Consiglio |
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Juan Sebastian Moreno Blanco |
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Manoel Marcos Madureira |
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Marco Antônio Martins de Araújo Filho |
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Oscar Rodriguez Herrero |
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Pedro Carlos Araújo Coutinho |
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Executive Officer |
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Fernando Díaz Roldán |
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Jose Alberto Zamorano Hernandez |
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José Roberto Machado Filho |
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Maria Eugênia Andrade Lopez Santos |
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Officer Without Designation |
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Amancio Acúrcio Gouveia |
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Ana Paula Nader Alfaya |
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Antonio Pardo de Santayana Montes |
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Carlos Alberto Seiji Nomoto |
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Cassio Schmitt |
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Cassius Schymura |
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Ede Ilson Viani |
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Eduardo Müller Borges |
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Flávio Tavares Valadão |
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Gilberto Duarte de Abreu Filho |
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Jamil Habibe Hannouche |
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Javier Rodriguez De Colmenares Y Alvarez |
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Jean Pierre Dupui |
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Luiz Felipe Taunay Ferreira |
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Mara Regina Lima Alves Garcia |
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Marcelo Zerbinatti |
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Marcio Aurelio de Nobrega |
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Mário Adolfo Libert Westphalen |
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Mauro Siequeroli |
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Miguel Angel Albero Ocerin |
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Nilo Sérgio Silveira Carvalho |
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Nilton Sergio Silveira Carvalho |
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Ramón Sanchez Díez |
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Reginaldo Antonio Ribeiro |
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Roberto de Oliveira Campos Neto |
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Ronaldo Yassuyuki Morimoto |
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Sergio Antonio Borrielo |
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Sérgio Gonçalves |
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Thomas Gregor Ilg |
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Vanessa de Souza Lobato Barbosa |
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99
(Convenience Translation into English from the Original Previously Issued in Portuguese) | ||||||||||||||||
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Executive’s Report of Independent Auditors' Report |
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For purposes of compliance with article 25, § 1, VI, Exchange Commission (CVM) Instruction 480, of December 7, 2009, the Executive of Banco Santander (Brasil) S.A. (Banco Santander) (Company) state that discussed,reviewed and agreed with the views expressed in the Banco Santander's Independent Auditors' Report for the period ended June 30, 2014, theFinancial Statements prepared in accordance with BRGAAP and the documents that comprise it, being: Management Report, balance sheets, income statements, statements of changes in stockholders' equity, cash flow statements, statements of value added and and notes to the financial statements, prepared in accordance with accounting practices, established by Brazilian Corporate Law, in conjunction with standards set forth by the National Monetary Council (CMN), the Central Bank of Brazil, and the standard chart of Accounts for Financial Institutions (COSIF) and other applicable laws and regulations. These financial statements and the documents that comprise it, have been the object of an unqualified opinion of the Independent Auditors and the Audit Committee of the Company. | ||||||||||||||||
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Members of Companies’ Executives on June 30, 2014: |
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CEO |
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Jesús Maria Zabalza Lotina |
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Vice-President Senior Executive Officer |
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Conrado Engel |
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José de Paiva Ferreira |
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Vice-President Executive Officer and Investor Relations |
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Carlos Alberto López Galán |
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Vice-President Executive Officer |
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Carlos Rey de Vicente |
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Ignacio Dominguez-Adame Bozzano |
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João Guilherme de Andrade So Consiglio |
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Juan Sebastian Moreno Blanco |
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Manoel Marcos Madureira |
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Marco Antônio Martins de Araújo Filho |
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Oscar Rodriguez Herrero |
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Pedro Carlos Araújo Coutinho |
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Executive Officer |
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Fernando Díaz Roldán |
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Jose Alberto Zamorano Hernandez |
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José Roberto Machado Filho |
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Maria Eugênia Andrade Lopez Santos |
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Officer Without Designation |
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Amancio Acúrcio Gouveia |
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Ana Paula Nader Alfaya |
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Antonio Pardo de Santayana Montes |
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Carlos Alberto Seiji Nomoto |
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Cassio Schmitt |
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Cassius Schymura |
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Ede Ilson Viani |
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Eduardo Müller Borges |
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Jean Pierre Dupui |
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Mário Adolfo Libert Westphalen |
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Mauro Siequeroli |
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Nilo Sérgio Silveira Carvalho |
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Nilton Sergio Silveira Carvalho |
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100
(Convenience Translation into English from the Original Previously Issued in Portuguese) | |||||||||||||||
Summary of the Audit Committee Report | |||||||||||||||
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Santander Financial and Non-Financial Group’s Audit Committee was established by the Board of Directors of Banco Santander (Brasil) S.A., the Group´s lead entity, and acts as a single Audit Committee for all institutions belonging to the Group, including the capitalization entity. | |||||||||||||||
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According to its Internal Rules, available at www.ri.santander.com.br, the Audit Committee advises the Board of Directors in the oversight of the quality of the financial statements, compliance with rules and legislation, effectiveness and independence of the work performed by the internal and independent auditors, and internal control system effectiveness and operational risk management. The Audit Committee also recommends corrections or improvements of policies, practices and procedures identified in the course of its duties, whenever deemed necessary. The assessments of the Audit Committee are based primarily on information received from Executive Officers, internal and independent auditors and the areas responsible for the corporate monitoring of internal controls and operational risks. | |||||||||||||||
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The Audit Committee is composed of four independent members, appointed at the Board of Directors´ Meetings held on March 18, 2014 and May 27, 2014. One of the members is also a member of the Board of Directors of Banco Santander (Brasil). | |||||||||||||||
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The Audit Committee acts through meetings and undertakes analysis of documents and information submitted to it, as well as takes measures regarding other maters requiring attention. It held, formally, fifty five meetings in the first half of 2014 and in July of 2014 in conducting its duties. The Audit Committee´s meeting minutes, and attachments, are sent to the Board of Directors. | |||||||||||||||
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The Audit Committee held a meeting with the Board of Directors on January 29, 2014 and July 30, 2014. In compliance with the Policy for Related-Party Transactions, the Audit Committee is analyzing for the purpose of recommending to the Board of Directors the preliminary documents and negotiations regarding the approval of the sale of the totality of the shares of CRV D.T.V.M. S.A. subsidiary of Banco Santander (Brasil) S.A., and the sale of the custody business unit of Banco Santander (Brasil) S.A., which was the object of a communication to investors made in a Relevant Matter disclosure published on June 19, 2014 . In the same manner, the Audit Committee is monitoring the Public Offer, to be settled via share exchange, made by the indirect controlling shareholder, Banco Santander S.A.- Spain. The Public Offer consists of a voluntary offer in Brazil and the United States of America for the acquisition of the whole of the share capital of Banco Santander (Brasil) S.A. which is not held by Banco Santander (Brasil) S.A. by the settlement of Brazilian Depositary Receipts or American Depositary Sahres, representatives its own shares, in accordance with the communication to investors made in a Relevant Matter disclosure published on April 29, 2014. | |||||||||||||||
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In addition, the Coordinator participates as a member of the Risk Committee of the Board of Directors and as an observer in the Executive Committees, including Operational Risks, Compliance and Internal Controls and Products. The Audit Committee also monitors the results of inspections and recommendations made by regulatory and self-regulating bodies and the respective action plans for the resolution of issues. In this semester, the Audit Committee held specific meetings with the representatives of the Central Bank of Brazil (Bacen). | |||||||||||||||
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Regarding the Audit Committee’s roles and responsibilities: | |||||||||||||||
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Financial Statements | |||||||||||||||
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BrGaap - The Audit Committee proceeded with the analysis of the financial statements of the companies comprising Santander Economic and Financial Group, confirming their quality. In this respect, the Committee followed up on the closing of the records of the first half of 2014, prior to the publication of the results for the period, and met with the independent auditors and the professionals responsible for the accounting and preparation of the financial statements. | |||||||||||||||
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IFRS - As part of its duties, the Audit Committee also analyzed the financial statements prepared in accordance with International Financial Reporting Standards (IFRS), to comply with the rules applicable to the companies registered with the US Securities and Exchange Commission (SEC) and traded on the New York Stock Exchange (NYSE). | |||||||||||||||
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Internal Control and Operational Risk Management |
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The Audit Committee received material and held meetings with the Operational Risk Executive Officer and with the Internal Control and Capital Officer, primarily responsible for managing, implementing and promoting internal control and risk management awareness and methodology. The Audit Committee also followed up on the whistle blowing of frauds and errors managed by the Operational Risk area. These analysis were conducted in conformity with Resolutions CMN 2554/1998 and 3380/2006, Sarbanes Oxley Act- SOX and Circular 249/2004 of the Superintendency of Private Insurance (Susep), as required for Santander Capitalização S.A., all related to the effective management of the internal control system, regarding the prevention and reduction of operational risks and losses. | |||||||||||||||
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Internal Audit |
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Concerning the internal audit work, the Audit Committee held four meetings during the first half of 2014 and July of 2014, and met, on several other occasions, by having Internal Audit professionals attending other Audit Committee meetings. At the meetings, the Audit Committee reviewed the planning and work plan for 2014, and monitored the work performed, reports issued, findings and recommendations, with special attention to the implementation of those addressed to areas that controls are considered insufficient or that need improvements The Audit Committee reviewed the performance of the Internal Audit function, which results were discussed with the Head of Internal Audit in a specific meeting for that purpose. | |||||||||||||||
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101
Independent Audit | |||||||||||||||
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The independent auditors are responsible for planning, performing the audit and issuing a report and quarterly special reviews reports of the individual and consolidated financial statements of the Group. As a result of its work, the independent auditors issue recommendation reports regarding the internal control system and the noncompliance with rules and legislation, according to Bacen Circular 3467/09 and Sarbanes Oxley Act- SOX. With respect to the work performed by the independent audit firm, Deloitte Touche Tohmatsu Auditores Independentes (Deloitte), the Audit Committee formally held nine meetings, in the first half of 2014 and in July of 2014. The main discussions at the meetings involved the financial statements of the first half of 2014, accounting practices, deficiencies, and comments and recommendations raised in the internal control reports, as well as the findings from the performance evaluation carried out by the Audit Committee. The Audit Committee analyzed and recommended to the Board of Directors the approval of Deloitte´s technical proposal for rendering services regarding the audit of the financial statements of 2014. Besides, it analyzed the services proposals presented by Deloitte, to perform services other than auditing the financial statements, in order to verify the inexistence of conflicts of interest or loss of independence. | |||||||||||||||
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The Audit Committee also held a meeting with the partner of Deloitte to present the analyses of the performance of the Independent Audit, made by the Audit Committee, pursuant to current regulations. | |||||||||||||||
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Ombudsman | |||||||||||||||
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In view of CMN Resolution 3849/2010, which regulates the Ombudsman function for financial institutions, the work performed in the first of 2014, was presented to and discussed with the Audit Committee. The Ombudsman Report required by the Brazilian Central Bank (Bacen) will be reviewed in a meeting scheduled for August, 2014. | |||||||||||||||
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Other Activities | |||||||||||||||
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Besides the activities above described, as part of the work inherent in its duties, the Audit Committee met with management and several areas of Santander, for additional analysis, especially: (i) with Operational Risk Executives about the security process in the attendant channels; (ii) with Operations and Services Executive for acquaintance of the work related to the customers database update and quality improvement; (iii) with Legal Executives for an update on the evolution and treatment given to labor, civil and fiscal contingency liabilities, and the corresponding accounting entry, especially those for the main disputes; (iv) with Compliance Executive about the Market Trading Code, to control of related-party transactions, money laundering prevention and Anti-Bribery legislation matters; (v) with Finance executives, about the status for implementing Basel requirements, Investor Relations and management procedures of ratio, interest, exchange and capital; and (vi) with Credit and Risk Executives for an update on the valuation, monitoring and loss provision criterion pursuant to credit risk management. | |||||||||||||||
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During the period, the members of the Audit Committee also attended trainings and presentations on normative acts of the interest and with impact to the Conglomerate. | |||||||||||||||
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Conclusion | |||||||||||||||
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On the basis of our work and assessments performed, and taking into consideration the context and scope of its duties, the Audit Committee concluded that the work undertaken as described above is adequate and provides transparency and quality to the financial statements as at June 30, 2014 of the Santander Economic and Financial Group, recommending their approval by the Board of Directors of Banco Santander (Brasil) S.A. | |||||||||||||||
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Audit Committee | |||||||||||||||
São Paulo, July 30, 2014 | |||||||||||||||
Celso Clemente Giacometti | |||||||||||||||
Elídie Palma Bifano | |||||||||||||||
Graham Charles Nye – Financial Expert | |||||||||||||||
René Luiz Grande - Coordinator |
102
Banco Santander (Brasil) S.A. | ||
By: | /S/ Amancio Acurcio Gouveia | |
Amancio Acurcio Gouveia Executive Office | ||
By: | /S/ Carlos Alberto Lopes Galán | |
Carlos Alberto Lopes Galán Vice - President Executive Officer |