UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month of April, 2015
Commission File Number: 001-34476
BANCO SANTANDER (BRASIL) S.A.
(Exact name of registrant as specified in its charter)
Avenida Presidente Juscelino Kubitschek, 2041 and 2235
Bloco A – Vila Olimpia
São Paulo, SP 04543-011
Federative Republic of Brazil
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:Form 20-F ___X___ Form 40-F _______ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes _______ No ___X____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes _______ No ___X____
Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes _______ No ___X____
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
 | CONTENTS |
CONTENTS
MANAGERIAL ANALYSIS OF RESULTS – BR GAAP
KEY CONSOLIDATED DATA | 03 |
| |
sTRATEGY | 04 |
| |
EXECUTIVE SUMMARY | 05 |
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SANTANDER BRASIL RESULTS | |
MANAGERIAL INCOME STATEMENT | 06 |
BALANCE SHEET | 10 |
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OUR SHARES | 19 |
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RATINGS | 20 |
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ADDITIONAL INFORMATION – BALANCE SHEET AND MANAGERIAL FINANCIAL STATEMENTS | 21 |
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ACCOUNTING AND MANAGERIAL RESULTS RECONCILIANTION | 24 |
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| KEY CONSOLIDATED DATA |
|
KEY CONSOLIDATED DATA
The table below shows the managerial results. The reconciliation with the accounting results is shown on pages24 and 25.
| | | | | | | | |
MANAGERIAL¹ ANALYSIS - BR GAAP | | 1Q15 | 1Q14 | Var. | 1Q15 | 4Q14 | Var. |
| | | 1Q15x1Q14 | | | 1Q15x4Q14 |
| | | | | | | |
RESULTS (R$ million) | | | | | | | |
Net interest income | | 7,140 | 7,000 | 2.0% | 7,140 | 6,983 | 2.2% |
Fee and commission income | | 2,828 | 2,633 | 7.4% | 2,828 | 2,977 | -5.0% |
Allowance for loan losses | | (2,112) | (2,346) | -10.0% | (2,112) | (2,128) | -0.8% |
General Expenses² | | (4,103) | (3,974) | 3.2% | (4,103) | (4,440) | -7.6% |
Managerial net profit³ | | 1,633 | 1,428 | 14.4% | 1,633 | 1,521 | 7.3% |
Accounting net profit | | 684 | 518 | 31.9% | 684 | 578 | 18.2% |
| | | | | | | |
BALANCE SHEET (R$ million) | | | | | | | |
Total assets | | 612,291 | 494,612 | 23.8% | 612,291 | 589,956 | 3.8% |
Securities | | 131,493 | 96,242 | 36.6% | 131,493 | 132,271 | -0.6% |
Loan portfolio | | 258,144 | 223,952 | 15.3% | 258,144 | 245,514 | 5.1% |
Individuals | | 79,819 | 75,445 | 5.8% | 79,819 | 78,304 | 1.9% |
Consumer finance | | 36,178 | 37,421 | -3.3% | 36,178 | 36,756 | -1.6% |
Small and Medium Enterprises | | 31,643 | 31,877 | -0.7% | 31,643 | 31,745 | -0.3% |
Corporate | | 110,504 | 79,210 | 39.5% | 110,504 | 98,709 | 11.9% |
Expanded Credit Portfolio4 | | 324,737 | 275,185 | 18.0% | 324,737 | 310,593 | 4.6% |
Funding from Clients5 | | 260,722 | 223,467 | 16.7% | 260,722 | 251,714 | 3.6% |
Equity6 | | 51,385 | 48,709 | 5.5% | 51,385 | 50,453 | 1.8% |
| | | | | | | |
PERFORMANCE INDICATORS (%) | | | | | | | |
Return on average equity excluding goodwill6 - annualized | | 12.8% | 11.2% | 1.6 p.p. | 12.8% | 12.1% | 0.8 p.p. |
Return on average asset excluding goodwill6 - annualized | | 1.1% | 1.2% | -0.1 p.p. | 1.1% | 1.1% | 0.0 p.p. |
Efficiency Ratio7 | | 49.8% | 49.3% | 0.5 p.p. | 49.8% | 53.6% | -3.7 p.p. |
Recurrence Ratio8 | | 68.9% | 66.3% | 2.7 p.p. | 68.9% | 67.0% | 1.9 p.p. |
BIS ratio9 | | 16.0% | 18.3% | -2.3 p.p. | 16.0% | 17.5% | -1.5 p.p. |
| | | | | | | |
PORTFOLIO QUALITY INDICATORS (%) | | | | | | | |
Delinquency (over 90 days) | | 3.0% | 3.8% | -0.8 p.p. | 3.0% | 3.3% | -0.3 p.p. |
Delinquency (over 60 days) | | 3.7% | 4.8% | -1.1 p.p. | 3.7% | 4.1% | -0.3 p.p. |
Coverage ratio (over 90 days) | | 180.8% | 176.7% | 4.2 p.p. | 180.8% | 180.0% | 0.8 p.p. |
| | | | | | | |
OTHER DATA | | | | | | | |
Assets under management - AUM (R$ million)10 | | 167,406 | 149,420 | 12.0% | 167,406 | 164,111 | 2.0% |
Branches | | 2,253 | 2,255 | (2) | 2,253 | 2,252 | 1 |
PABs (mini branches) | | 1,138 | 1,220 | (82) | 1,138 | 1,160 | (22) |
Own ATMs | | 14,372 | 16,479 | (2,107) | 14,372 | 14,856 | (484) |
Shared ATMs | | 18,256 | 16,232 | 2,024 | 18,256 | 18,203 | 53 |
Total Customers (thousand) | | 31,388 | 30,057 | 1,331 | 31,388 | 31,093 | 296 |
Employees | | 49,910 | 48,651 | 1,259 | 49,910 | 49,309 | 601 |
| | | | | | | |
| | | | | | | | |
1. Excludes 100% of the goodwill amortization expense, the tax hedge effect and others as mentioned on pages 24 and 25. |
2. Administrative Expenses exclude 100% of the goodwill amortization expense and personnel expenses include profit sharing. |
3. Managerial net profit corresponds to the accounting net profit + 100% of reversal of goodwill amortization expense ocurred in the period. The expense of goodwill amortization in 1Q15 was R$ 949 million, in 1Q14 was R$909 million, in 4Q14 was R$ 943 million. |
4. Includes other Credit Risk Transactions with clients ("Debenture", FIDC, CRI, Floating Rate Notes, Promissory Notes, Acquiring activities related assets and Guarantees). |
5. Includes savings, demand deposits, time deposits, debenture, LCA, LCI, Treasury Notes (Letras Financeiras - LFT) and Certificates of Structured Operations (COE) |
6. Excludes 100% of the goodwill that in 1Q15 was R$ 6,018 million, 1Q14 R$ 8,495 million and 4Q14 was R$ 6,867 million. |
7. Efficiency Ratio: General Expenses / (Net Interest Income + Fee and Commission Income + Tax Expenses + Other Operating Income/Expense) |
8. Recurrence: Fee and Commission Income / General expenses. |
9. BIS Ratio as of Brazilian Central Bank. From 2015 on, considers the prudential conglomerate. |
10. According to Anbima (Associação Brasileira das Entidades dos Mercados Financeiro e de Capitais) criterion. |
| STRATEGY |
STRATEGY Santander Brasil is a universal bank focused on retail activities. Certainly, the only path to grow on a recurring and sustainable basis is providing excellence services to increase satisfaction levels and getting more linked clients. Thus, the priority is working as a simple, personal and fair bank. Our strategy is defined according to a long-term scenario and is mainly focused on an efficient execution of the following priorities: - Increase clients’ preference and linkagewith segmented, simple, modern and efficient products and services that, through a multi-channel platform, seek to maximize our customer satisfaction.
- Improve recurrence and sustainability growing in business with greater revenue diversification, considering balanced credit, funding and services and, at the same time, maintaining anefficient management of expenses and a strict control of risks.
- Capital discipline and liquidityto maintain the soundness of the balance sheet, to face regulatory changes and to take advantages of growth opportunities.
- Increase productivitythrough an intense agenda of productive transformation allowing us to offer a complete services portfolio.
The Strategy prioritizes the selective growth, a close and long-lasting relationship with shareholders and the alignment with Brazil’s economic and social development agenda, which occurs by means of aspects, such as a sustainable model of credit expansion, solid support to the private finance initiative and great contributions to infrastructure projects. Observing certain events in 2014, it is possible to see how our strategy has been effective and transforming our Bank into the best commercial bank. It is worth mentioning the | | opening of Latin America’s first Data Center TIER IV. This new data processing center allows us to increase our processing capacity (on average, 210 million transactions/day). We acquired GetNet, which will allow us a greater flexibility in the payment management, with the possibility of offering a more complete value portfolio to our clients and capturing the operational and business synergies with our credit card business. In addition, through our interest held in Banco Bonsucesso, we seek to expand our payroll-deductible loan portfolio and, with Super Pagamentos acquisition, we have the possibility of offering simplified financial services to commercial segments, such as the prepaid card. We also mention the launching of a new Mobile Banking and the upgrade of our Internet Banking, amongst others. In the first quarter of 2015, we sought to consolidate the advances achieved in 2014, such as the simplification of processes and the implementation of a new business model called “CERTO”, which allows a greater simplicity and business dedication to our clients through a single management platform with integrated tools, in order to strengthen the customer relationship. |
4
| KEY CONSOLIDATED DATA |
|
EXECUTIVE SUMMARY Santander’s managerial net profit¹ totaled R$ 1,633 million in the first quarter of 2015, up 14.4% in twelve months and 7.3% and three months. Total revenues reached R$ 9,968 million in the first three months of 2015, an increase of 3.5% (or R$ 334 million) in twelve months and 0.1% in the quarter. The allowance for loan losses amounted to R$ 2,112 million, down 10.0% (or R$ 234 million) in twelve months and 0.8% in the quarter. Revenues net of allowance for loan losses moved up by 7.8% in twelve months and 0.3% in the quarter. General expenses totaled R$ 4,103 million in the first quarter of 2015, up 3.2% (or R$ 129 million), in twelve months, lagging inflation evolution in the period. In the quarter there was a 7.6% decline. The efficiency ratio stood at 49.8% the first quarter of 2015, an increase of 0.5 p.p. in twelve months and an improvement of 3.7 p.p. in the quarter. The total credit portfolio came to R$ 258,144 million in March 2015, up 15.3%in twelve months and 5.1% in the quarter. In February 2015, there was the closing of the partnership with Bonsucesso, strengthening the payroll loans businesses. The consolidation of this new transaction has positively impacted the loan portfolio in R$ 1.7 billion. Therefore, excluding this effect and the expressive exchange rate variation, total credit portfolio would have grown by 9.2% and 1.6% in twelve and in three months, respectively. The expanded credit portfolio totaledR$ 324,737 million in March 2015, up 18.0% intwelve months and 4.6% in the quarter. Excluding Bonsucesso effect and the exchange rate variation, the expanded credit portfolio would have grown by 13.0% and 1.8% in twelve and in three months, respectively. Loans to individuals closed March 2015 atR$ 79,819 million up 5.8% (or R$ 4,373 million) in 12 months and 1.9% in the quarter. The annual upturnwas fueled by mortgage, agricultural and credit cards loans. In the quarter, the portfolio was fueled by mortgage and payroll loans. The consumer finance portfolio, totaledR$ 36,178 million in March 2015,down3.3% (or R$ 1,243 million) in twelve months and 1.6% in the quarter. | | The SMEs’ portfolio closed March 2015 atR$ 31,643 million, down 0.7% (or R$ 234 million) in twelve months and 0.3% in the quarter. The Large Corporates portfolio came toR$ 110,504 million, up 39.5% (or R$ 31,295) in twelve months and 11.9% in the quarter. This portfolio’s evolution was positively affected by the exchange rate variation both in the annual and quarterly comparisons. Excluding said effect,this credit portfolio would have grown by25.3% in 12 months and 5.3% in the quarter. Total funding from clients reached R$ 260,722 million in March 2015, up 16.7% in twelve months and 3.6% in the quarter.Total funding plus assets under management came toR$ 469,267 million, 20.1%higher than in March2014 and 3.9% up in the quarter. Total equity, excluding R$ 6,018 million related to goodwill, came to R$ 51,385 million in March 2015. Return on average equity (ROAE) adjusted for goodwill reached 12.8% in the first quarter of 2015, up 1.6 p.p. in twelve months and 0.8 p.p. in the quarter. The BIS ratio, considering the prudential conglomerate, stood at 16.0% in March 2015. Tier I capital reached 14.5% and Tier II capital was 1.5%. The coverage ratio (over 90 days) closed March 2015 at 180.8%. RECENT EVENTS In the first quarter of 2015,was the closing of the partnership between Santander Brasil and Bonsucesso. For further information, please refer to the Financial Statements, note 37 – Corporate Restructuring. 1.Accounting net profit + 100% reversal of goodwill amortization expenses. |
| SANTANDER BRASIL RESULTS |
MANAGERIAL ANALYSIS OF RESULTS
Next, we present the analysis of the managerial results.
MANAGERIAL FINANCIAL STATEMENT¹ (R$ Million) | | | | | | | |
| 1Q15 | 1Q14 | Var. | 1Q15 | 4Q14 | Var. |
| | | 1Q15x1Q14 | | | 1Q15x4Q14 |
| | | | | | | |
NET INTEREST INCOME | | 7,140 | 7,000 | 2.0% | 7,140 | 6,983 | 2.2% |
Allowance for Loan Losses | | (2,112) | (2,346) | -10.0% | (2,112) | (2,128) | -0.8% |
NET INTEREST INCOME AFTER LOAN LOSSES | | 5,028 | 4,654 | 8.0% | 5,028 | 4,854 | 3.6% |
Fee and commission income | | 2,828 | 2,633 | 7.4% | 2,828 | 2,977 | -5.0% |
General Expenses | | (4,103) | (3,974) | 3.2% | (4,103) | (4,440) | -7.6% |
Personnel Expenses + Profit Sharing | | (1,861) | (1,760) | 5.8% | (1,861) | (1,976) | -5.8% |
Administrative Expenses2 | | (2,242) | (2,214) | 1.2% | (2,242) | (2,464) | -9.0% |
Tax Expenses | | (929) | (767) | 21.2% | (929) | (822) | 13.0% |
Investments in Affiliates and Subsidiaries | | 1 | (0) | n.a. | 1 | 2 | n.a. |
Other Operating Income/Expenses | | (802) | (806) | -0.4% | (802) | (850) | -5.6% |
OPERATING INCOME | | 2,022 | 1,741 | 16.2% | 2,022 | 1,721 | 17.5% |
Non Operating Income | | 78 | 9 | n.a. | 78 | 28 | n.a. |
NET PROFIT BEFORE TAX | | 2,100 | 1,749 | 20.0% | 2,100 | 1,749 | 20.1% |
Income Tax and Social Contribution | | (408) | (269) | 51.7% | (408) | (162) | 151.6% |
Minority Interest | | (60) | (53) | 12.1% | (60) | (66) | -9.4% |
NET PROFIT | | 1,633 | 1,428 | 14.4% | 1,633 | 1,521 | 7.3% |
| | | | | | | | |
1. Excludes 100% of the goodwill amortization expense, the tax hedge effect and others as mentioned on pages 24 and 25. |
2. Administrative Expenses exclude 100% of the goodwill amortization expense. |
| NET INTEREST INCOME Net interest income, including income from financial operations, totaled R$ 7,140 millionin the first quarter of 2015, up 2.0% year on year and 2.2% quarter on quarter. Revenues from loan operations fell by 4.9% (or R$ 266 million) in twelve months, but increased by 0.5% in the quarter. In the same periods, the average volume of the loan portfolio grew by 11.1% and 4.2% respectively. The yearly revenue decline reflects the reduction in the average loan portfolio spread, in turn essentially due to the change in the mix of products/segments. | |  |
Revenues from deposits increased by 21.1% in twelve months and 5.1% in the quarter, partly due to the increase in the Selic interest rate in both periods.
The “Others” line, which includes the result of the structural interest rate gap, revenue from clients in treasury activities and others, moved up by 26.4% (or R$ 342 million) in twelve months and 7.4% in the quarter.
6
| SANTANDER BRASIL RESULTS |
|
| | | | | | | | |
NET INTEREST INCOME | | 1Q15 | 1Q14 | Var. | 1Q15 | 4Q14 | Var. |
(R$ Million) | | | | 1Q15x1Q14 | | | 1Q15x4Q14 |
| | | | | | | |
Net Interest Income | | 7,140 | 7,000 | 2.0% | 7,140 | 6,983 | 2.2% |
Loans | | 5,137 | 5,403 | -4.9% | 5,137 | 5,110 | 0.5% |
Average volume | | 246,640 | 222,067 | 11.1% | 246,640 | 236,604 | 4.2% |
Spread (Annualized) | | 8.4% | 9.9% | -1.42 p.p. | 8.4% | 8.6% | -0.12 p.p. |
Deposits | | 368 | 304 | 21.1% | 368 | 351 | 5.1% |
Average volume | | 130,795 | 126,936 | 3.0% | 130,795 | 134,629 | -2.8% |
Spread (Annualized) | | 1.1% | 1.0% | 0.17 p.p. | 1.1% | 1.0% | 0.11 p.p. |
Others¹ | | 1,635 | 1,293 | 26.4% | 1,635 | 1,522 | 7.4% |
| | | | | | | | |
1. Includes Gains (Losses) on financial transactions and others net interest incomes. | | | | | |
FEE AND COMMISSION INCOME
Fee and commission income totaled R$ 2,828 million in the first quarter of 2015, up 7.4% (or R$ 195 million) in twelve months and down 5.0% in the quarter. It is worth noting that the quarterly decline was affected by typical fourth-quarter seasonality, as well as the effect of insurance fees, which is explained in more detail further. Excluding the insurance effect, commissions would have grown by 0.1% in the quarter.
Credit card commissions amounted toR$ 838 millionin the first quarter of 2015, up 2.1% (or R$ 17 million) in 12 months and down 9.6% in the quarter. The quarterly evolution was negatively impacted by the seasonality of the end of the year.
Insurance fees totaled R$ 472 million in the first three months of 2015, up 10.1% (or R$ 43 million) in twelve months and down 13.1% in the quarter. The quarterly variation was impacted by the seasonal effect of policy renewals, which were concentrated in the fourth quarter. Excluding this effect, insurance fees would have grown by 21.0% in the quarter. This positive evolution was due to commercial actions.
Asset management fees totaled R$ 260 million in the first quarter of 2015, up 10.3% (or R$ 24 million) intwelve months and down 2.5% in the quarter, chiefly due to the lower number of working days in the quarter.
Additionally,income from lending operations came to R$ 328millionin the first quarter of 2015, up 16.9% (or R$ 47 million)intwelve months anddown 6.3% in the quarter.
| | | | | | | | |
FEE AND COMMISSION INCOME | | 1Q15 | 1Q14 | Var. | 1Q15 | 4Q14 | Var. |
(R$ Million) | | | | 1Q15x1Q14 | | | 1Q15x4Q14 |
| | | | | | | |
Cards | | 838 | 821 | 2.1% | 838 | 927 | -9.6% |
Insurance fees | | 472 | 428 | 10.1% | 472 | 543 | -13.1% |
Current Account Services | | 466 | 459 | 1.5% | 466 | 462 | 0.8% |
Asset Management | | 260 | 236 | 10.3% | 260 | 266 | -2.5% |
Lending Operations | | 328 | 280 | 16.9% | 328 | 350 | -6.3% |
Collection Services | | 233 | 215 | 8.3% | 233 | 248 | -6.0% |
Securities Brokerage, Custody and Placement Services | | 140 | 128 | 9.1% | 140 | 103 | 35.4% |
Others | | 92 | 66 | 39.5% | 92 | 78 | 18.2% |
Total | | 2,828 | 2,633 | 7.4% | 2,828 | 2,977 | -5.0% |
| | | | | | | | |
| SANTANDER BRASIL RESULTS |
GENERAL EXPENSES (ADMINISTRATIVE + PERSONNEL) Administrative and personnel expenses (excluding depreciation and amortization) totaled R$ 3,571 millionin the first quarter of2015, up 0.9% (or R$ 32 million) in 12 months and down 9.3% in the quarter. Personnel expenses, including profit sharing, came toR$ 1,861 millionin the first three months of2015, an increase of 5.8% (or R$ 102 million) year on year and a 5.8% decrease quarter on quarter.The quarterly decrease reflects higher expenses with compensation, charges and training. | |  |
Administrative expenses, excluding depreciation and amortization, amounted toR$ 1,709 millioninthe first quarter of 2015, a 3.9% (or R$ 69 million) decline intwelve months. In the quarter, the 12.9% upturn was mainly due to lowerexpenses from “advertising, promotion and publicity” and“specialized technical outsourced services”.
Depreciation and amortization totaled R$ 533 millionin the first three months of2015, up 22.2% (or R$ 97 million) intwelve months and 6.1% in the quarter. The yearly evolution was due to the impact of technology investments amortization of Getnet and the Campinas Data Center, which began after the first quarter of 2014.
General expenses, including depreciation and amortization, grew by3.2% (or R$ 129 million)intwelve months, an increase well below the period inflation, and fell by7.6% in the quarter.The efficiency ratio stood at49.8% in the first quarter of 2015, a 3.7 p.p. improvement over the previous quarter.
| | | | | | | | |
EXPENSES' BREAKDOWN (R$ Million) | | 1Q15 | 1Q14 | Var. | 1Q15 | 4Q14 | Var. |
| | | 1Q15x1Q14 | | | 1Q15x4Q14 |
| | | | | | | |
Outsourced and Specialized Services | | 534 | 575 | -7.2% | 534 | 634 | -15.8% |
Advertising, promotions and publicity | | 56 | 73 | -23.7% | 56 | 179 | -68.7% |
Data processing | | 332 | 329 | 1.0% | 332 | 350 | -5.1% |
Communications | | 119 | 144 | -17.1% | 119 | 134 | -10.9% |
Rentals | | 183 | 184 | -0.9% | 183 | 181 | 0.9% |
Transport and Travel | | 45 | 46 | -2.2% | 45 | 54 | -17.1% |
Security and Surveillance | | 162 | 158 | 2.6% | 162 | 156 | 3.6% |
Maintenance | | 58 | 48 | 20.2% | 58 | 54 | 6.9% |
Financial System Services | | 53 | 96 | -45.3% | 53 | 52 | 1.6% |
Water, Electricity and Gas | | 50 | 45 | 10.9% | 50 | 43 | 15.6% |
Material | | 18 | 19 | -4.3% | 18 | 29 | -37.1% |
Others | | 101 | 62 | 63.8% | 101 | 97 | 4.2% |
Subtotal | | 1,709 | 1,779 | -3.9% | 1,709 | 1,962 | -12.9% |
Depreciation and Amortization1 | | 533 | 436 | 22.2% | 533 | 502 | 6.1% |
ADMINISTRATIVE EXPENSES | | 2,242 | 2,214 | 1.2% | 2,242 | 2,464 | -9.0% |
| | | | | | | |
Compensation² | | 1,167 | 1,130 | 3.2% | 1,167 | 1,218 | -4.2% |
Charges | | 354 | 324 | 9.5% | 354 | 376 | -5.9% |
Benefits | | 313 | 288 | 8.7% | 313 | 323 | -3.0% |
Training | | 18 | 12 | 53.7% | 18 | 50 | -64.4% |
Others | | 9 | 6 | 51.4% | 9 | 8 | 8.3% |
PERSONNEL EXPENSES | | 1,861 | 1,760 | 5.8% | 1,861 | 1,976 | -5.8% |
| | | | | | | - |
ADMINISTRATIVE + PERSONNEL EXPENSES (excludes deprec. and amortization) | | 3,571 | 3,538 | 0.9% | 3,571 | 3,938 | -9.3% |
| | | | | | - | |
TOTAL GENERAL EXPENSES | | 4,103 | 3,974 | 3.2% | 4,103 | 4,440 | -7.6% |
| | | | | | | | |
1. Excludes the expenses of goodwill amortization, which in 1Q15 was 949 million, 4Q14 was R$ 943 million and in 1Q14 was R$ 909 million. |
2. Includes Profit Sharing |
8
| SANTANDER BRASIL RESULTS |
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ALLOWANCE FOR LOAN LOSSES
The allowance for loan losses totaled R$ 2,112 million in the first quarter of 2015, down 10.0% intwelve months and 0.8% in the quarter.
| | | | | | | | |
ALLOWANCE FOR LOAN LOSSES | | 1Q15 | 1Q14 | Var. | 1Q15 | 4Q14 | Var. |
(R$ Million) | | | | 1Q15x1Q14 | | | 1Q15x4Q14 |
| | | | | | | |
Gross allowance for loan losses | (2,568) | (3,001) | -14.4% | (2,568) | (2,795) | -8.1% |
Income from recovery of written off loans | 457 | 655 | -30.3% | 457 | 667 | -31.5% |
Total | | (2,112) | (2,346) | -10.0% | (2,112) | (2,128) | -0.8% |
| | | | | | | | |
OtHER OPERATING INCOME (EXPENSES)
Other operating income (expenses) came to R$ 802 million in the first quarter of 2015, a decrease of 0.4% (or R$ 4 million) intwelve months and 5.6% in the quarter.
| | | | | | | | |
OTHER OPERATING INCOME (EXPENSES) (R$ Million) | | 1Q15 | 1Q14 | Var. | 1Q15 | 4Q14 | Var. |
| | | 1Q15x1Q14 | | | 1Q15x4Q14 |
| | | | | | | |
Other operating income (expenses) | | (802) | (806) | -0.4% | (802) | (850) | -5.6% |
Expenses from cards | | (339) | (370) | -8.3% | (339) | (346) | -2.0% |
Net Income Capitalization | | 60 | 62 | -3.3% | 60 | 67 | -10.8% |
Provisions for contingencies¹ | | (339) | (475) | -28.7% | (339) | (544) | -37.7% |
Others | | (184) | (22) | n.a. | (184) | (27) | n.a. |
| | | | | | | | |
1. Includes fiscal, civil and labor provisions. | | | | | | | |
INCOME TAX expenses
Taxes totaled R$ 408 millionin the first quarter of2015, with an effective tax rate of 19.4%, up 4.1 p.p. in 12 months and 10.2 p.p. in the quarter. The increase observed in the quarter was chiefly due to the recording of interest on equity in the fourth quarter, which did not occur this quarter.
| SANTANDER BRASIL RESULTS |
balance sheet
At the close of March 2015, total assets reached R$ 612,291 million, up 23.8% intwelve months and 3.8% in the quarter. In the same period, total equity came to R$ 57,403 million, or R$ 51,385 million excluding goodwill.
| | | | | | | |
ASSETS (R$ Million) | | Mar/15 | Mar/14 | Var. | Dec/14 | Var. |
| | | Mar/15xMar/14 | | Mar/15xDec/14 |
| | | | | | |
Current Assets and Long Term Assets | | 596,216 | 475,805 | 25.3% | 572,730 | 4.1% |
Cash and Cash Equivalents | | 4,964 | 5,204 | -4.6% | 5,075 | -2.2% |
Interbank Investments | | 48,736 | 31,255 | 55.9% | 39,809 | 22.4% |
Money Market Investments | | 36,619 | 18,915 | 93.6% | 24,704 | 48.2% |
Interbank Deposits | | 2,952 | 2,537 | 16.3% | 4,036 | -26.9% |
Foreign Currency Investments | | 9,166 | 9,803 | -6.5% | 11,068 | n.a. |
Securities and Derivative Financial Instrument | | 131,493 | 96,242 | 36.6% | 132,271 | -0.6% |
Own Portfolio | | 31,313 | 29,283 | 6.9% | 53,217 | -41.2% |
Subject to Repurchase Commitments | | 57,922 | 43,987 | 31.7% | 49,171 | 17.8% |
Posted to Central Bank of Brazil | | 9,965 | 6,558 | 51.9% | 9,286 | 7.3% |
Pledged in Guarantees | | 17,992 | 10,435 | 72.4% | 12,231 | 47.1% |
Others | | 14,301 | 5,978 | 139.2% | 8,366 | 70.9% |
Interbank Accounts | | 34,291 | 42,712 | -19.7% | 30,308 | 13.1% |
Interbranch Accounts | | 0 | 0 | n.a. | 0 | n.a. |
Lending Operations | | 244,162 | 208,981 | 16.8% | 231,021 | 5.7% |
Lending Operations | | 258,236 | 224,012 | 15.3% | 245,596 | 5.1% |
Lending Operations Related to Assignment | | 4 | 20 | -79.6% | 6 | -38.0% |
(Allowance for Loan Losses) | | (14,078) | (15,050) | -6.5% | (14,582) | -3.5% |
Others Receivables | | 130,277 | 89,440 | 45.7% | 131,892 | -1.2% |
Others Assets | | 2,292 | 1,970 | 16.4% | 2,355 | -2.7% |
Permanent Assets | | 16,075 | 18,807 | -14.5% | 17,226 | -6.7% |
Investments | | 38 | 51 | -24.7% | 38 | 1.4% |
Fixed Assets | | 6,783 | 6,704 | 1.2% | 6,923 | -2.0% |
Intangibles | | 9,253 | 12,052 | -23.2% | 10,265 | -9.9% |
Goodwill | | 27,531 | 26,275 | 4.8% | 27,428 | 0.4% |
Intangible Assets | | 7,693 | 6,885 | 11.7% | 7,594 | 1.3% |
(Accumulated Amortization) | | (25,971) | (21,108) | 23.0% | (24,757) | 4.9% |
Total Assets | | 612,291 | 494,612 | 23.8% | 589,956 | 3.8% |
| | | | | | | |
| | | | | | | |
Goodwill (net of the amortization) | | 6,018 | 8,495 | -29.2% | 6,867 | -12.4% |
Total Assets (excluding goodwill) | | 606,273 | 486,117 | 24.7% | 583,089 | 4.0% |
| | | | | | | |
| SANTANDER BRASIL RESULTS |
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LIABILITIES (R$ Million) | | Mar/15 | Mar/14 | Var. | Dec/14 | Var. |
| | | Mar/15xMar/14 | | Mar/15xDec/14 |
| | | | | | |
Current Liabilities and Long Term Liabilities | | 553,030 | 436,052 | 26.8% | 531,085 | 4.1% |
Deposits | | 140,580 | 133,227 | 5.5% | 143,632 | -2.1% |
Demand Deposits | | 15,255 | 14,356 | 6.3% | 16,049 | -4.9% |
Savings Deposits | | 37,569 | 35,023 | 7.3% | 37,939 | -1.0% |
Interbank Deposits | | 3,748 | 3,956 | -5.3% | 3,776 | -0.7% |
Time Deposits | | 84,008 | 79,891 | 5.2% | 85,867 | -2.2% |
Money Market Funding | | 117,102 | 86,279 | 35.7% | 110,353 | 6.1% |
Own Portfolio | | 89,866 | 75,368 | 19.2% | 87,305 | 2.9% |
Third Parties | | 10,400 | 738 | n.a. | 11,851 | -12.2% |
Free Portfolio | | 16,836 | 10,172 | 65.5% | 11,197 | 50.4% |
Funds from Acceptance and Issuance of Securities | | 83,722 | 66,125 | 26.6% | 74,952 | 11.7% |
Resources from Real Estate Credit Notes, Mortgage Notes, Credit and Similar | | 69,457 | 51,134 | 35.8% | 61,893 | 12.2% |
Securities Issued Abroad | | 12,911 | 13,321 | -3.1% | 11,796 | 9.5% |
Others | | 1,354 | 1,670 | -18.9% | 1,263 | 7.2% |
Interbank Accounts | | 1,284 | 2,276 | -43.6% | 14 | n.a. |
Interbranch Accounts | | 2,025 | 1,454 | 39.2% | 2,678 | -24.4% |
Borrowings | | 29,274 | 17,627 | 66.1% | 24,444 | 19.8% |
Domestic Onlendings -Official Institutions | | 15,987 | 12,459 | 28.3% | 15,614 | 2.4% |
Foreign Onlendings | | 0 | 9 | n.a. | - | n.a. |
Derivative Financial Instruments | | 15,247 | 4,543 | 235.6% | 8,813 | 73.0% |
Other Payables | | 147,808 | 112,054 | 31.9% | 150,587 | -1.8% |
Deferred Income | | 408 | 315 | 29.5% | 409 | -0.2% |
Minority Interest | | 1,449 | 1,040 | 39.3% | 1,141 | 27.0% |
Equity | | 57,403 | 57,204 | 0.3% | 57,321 | 0.1% |
Total Liabilities | | 612,291 | 494,612 | 23.8% | 589,956 | 3.8% |
| | | | | | | |
| | | | | | | |
Equity (excluding goodwill) | | 51,385 | 48,709 | 5.5% | 50,453 | 1.8% |
| | | | | | | |
SECURITIES
Securities totaled R$ 131,493 million in March 2015, up 36.6% in twelve months and down 0.6% in the quarter. The variation in the Financial instruments line is mainly explained by the exchange rate variation, which also impacts the liability lines in the same magnitude.
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SECURITIES (R$ Million) | | Mar/15 | Mar/14 | Var. | Dec/14 | Var. |
| | | Mar/15xMar/14 | | Mar/15xDec/14 |
| | | | | | |
Public securities | | 97,645 | 71,089 | 37.4% | 105,432 | -7.4% |
Private securities, funds quotas / others | | 19,551 | 19,178 | 1.9% | 18,476 | 5.8% |
Financial instruments | | 14,298 | 5,976 | 139.3% | 8,363 | 71.0% |
Total | | 131,493 | 96,242 | 36.6% | 132,271 | -0.6% |
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| SANTANDER BRASIL RESULTS |
CREDIT PORTFOLIO
The total credit portfolio totaled R$ 258,144 million at the close of March of 2015, up 15.3% in twelve months and 5.1% in the quarter. In both comparisons (twelve months and quarterly), the foreign currency credit portfolio, which also includes dollar-indexed loans, was impacted by the meaningful variation of the Real against the Dollar. Also, in February 2015 we completed the partnership with Bonsucesso, strengthening the business in the payroll businesses. The consolidation of this new operation had a R$ 1.7 billion positive impact on the loan portfolio. Thus, excluding this effect and the exchange rate variation impact, the expanded credit portfolio would have grown 9.2% and 1.6% in twelve months and in the quarter, respectively.
Also, the foreign currency credit portfolio, including dollar-indexed loans, totaled R$ 40.5 billion in March of 2015, up 59.3% on the R$ 25.4 billion recorded in March 2014 and 23.4% higher than December 2014.
The expanded credit portfolio, which includes other credit risk transactions, acquiring activities and guarantees, ended March 2015 at R$ 324,737 million, up 18.0% in 12 months and 4.6% in the quarter. Thus, excluding Bonsucesso effect and the exchange rate variation impact, the expanded credit portolio would have grown 13.0% and 1.8% in twelve months and in the quarter, respectively.
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MANAGERIAL BREAKDOWN OF CREDIT | | Mar/15 | Mar/14 | Var. | Dec/14 | Var. |
BY SEGMENT (R$ Million) | | | | Mar/15xMar/14 | | Mar/15xDec/14 |
| | | | | | |
Individuals | | 79,819 | 75,445 | 5.8% | 78,304 | 1.9% |
Consumer Finance | | 36,178 | 37,421 | -3.3% | 36,756 | -1.6% |
SMEs | | 31,643 | 31,877 | -0.7% | 31,745 | -0.3% |
Corporate | | 110,504 | 79,210 | 39.5% | 98,709 | 11.9% |
Total portfolio | | 258,144 | 223,952 | 15.3% | 245,514 | 5.1% |
Other credit related transactions¹ | | 66,593 | 51,233 | 30.0% | 65,079 | 2.3% |
Total expanded credit portfolio | | 324,737 | 275,185 | 18.0% | 310,593 | 4.6% |
| | | | | | | |
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1 - Includes Debenture, FIDC, CRI , Floating Rate Notes, Promissory Notes, acquiring activities related assets and guarantees. |
LOANS TO INDIVIDUALS Loans to individuals closed March 2015 at R$ 79,819 million, up 5.8% (or R$ 4,373 million) in twelve months and 1.9% in the quarter. Excluding the impact of Bonsucesso, which was already mentioned, the individuals loan portfolio would have grown 3.5% in twelve months and would have decreased 0.3% in the quarter. The yearly increase is driven by mortgage, agricultural and credit card loans. The balance of mortgages ended March 2015 at R$ 22,756 million, up 36.3% (or R$ 6,063 million) intwelve months and 6.7% in the quarter. Agricultural loans grew by 28.0% intwelve months and 7.6% in the quarter. The credit card portfolio totaled R$ 17,170 million, up 2.7% (or R$ 456 million) intwelve months and down 6.4% in the quarter. | |  |
Payroll loans totaled R$ 12,757 million, up 0.8% (or R$ 99 million) intwelve months and 12.5% in the quarter. Excluding the effect of Bonsucesso, this loan portfolio would have decreased 13.0% in twelve months and 2.9% in the quarter.
12
| SANTANDER BRASIL RESULTS |
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CONSUMER FINANCE The consumer finance portfolio, which is originated outside the branch network, closed March 2015 at R$ 36,178 million, down 3.3% (or R$ 1,243 million) intwelve months and 1.6% in the quarter. Of this total, R$ 29,964 million refers to vehicle financing for individuals. Therefore, the total vehicle portfolio for individuals, including operations originated through car dealers and Santander’s branch network, amounted to R$ 33,097 million in March 2015, down 2.2% in 12 months and 1.4% in the quarter. | |  |
CORPORATE AND SMEs Corporate and SME loans closed March2015 at R$ 142,147 million, up 28.0% (or R$ 31,061 million) intwelve months and 9.0% in the quarter. The Corporate loan portfolio came toR$ 110,504 million, up 39.5% (or R$ 31,295 million) intwelve months and 11.0% in the quarter, positively impacted by the exchange rate variation in both comparisons. Excluding this impact, growth would have come to25.3% in twelve months and 5.3% in the quarter. Loans to SMEs totaled R$ 31,643 million in March 2015, down 0.7% (or R$ 234 million) intwelve months and 0.4% in the quarter | |  |
| SANTANDER BRASIL RESULTS |
INDIVIDUALS AND CORPORATE LOAN PORTFOLIO BY PRODUCT
| | | | | | | |
BREAKDOWN OF MANAGERIAL CREDIT | | Mar/15 | Mar/14 | Var. | Dec/14 | Var. |
PORTFOLIO BY PRODUCT (R$ Million) | | | | Mar/15xMar/14 | | Mar/15xDec/14 |
| | | | | | |
Individuals | | | | | | |
Leasing / Auto Loans¹ | | 3,132 | 3,229 | -3.0% | 3,229 | -3.0% |
Credit Card | | 17,170 | 16,714 | 2.7% | 18,341 | -6.4% |
Payroll Loans² | | 12,757 | 12,658 | 0.8% | 11,342 | 12.5% |
Mortgages | | 22,756 | 16,694 | 36.3% | 21,318 | 6.7% |
Agricultural Loans | | 3,639 | 2,844 | 28.0% | 3,383 | 7.6% |
Personal Loans / Others | | 20,364 | 23,307 | -12.6% | 20,691 | -1.6% |
Total Individuals | | 79,819 | 75,445 | 5.8% | 78,304 | 1.9% |
| | | | | | | |
Consumer Finance | | 36,178 | 37,421 | -3.3% | 36,756 | -1.6% |
| | | | | | | |
Corporate and SMEs | | | | | | |
Leasing / Auto Loans | | 3,137 | 3,185 | -1.5% | 3,137 | 0.0% |
Real Estate | | 10,332 | 9,850 | 4.9% | 10,283 | 0.5% |
Trade Finance | | 23,401 | 17,017 | 37.5% | 20,455 | 14.4% |
On-lending | | 12,901 | 10,386 | 24.2% | 12,113 | 6.5% |
Agricultural Loans | | 2,714 | 2,416 | 12.3% | 2,780 | -2.4% |
Working capital / Others | | 89,663 | 68,231 | 31.4% | 81,685 | 9.8% |
Total Corporate and SMEs | | 142,147 | 111,086 | 28.0% | 130,454 | 9.0% |
| | | | | | | |
Total Credit | | 258,144 | 223,952 | 15.3% | 245,514 | 5.1% |
Other Credit Risk Transactions with clients³ | | 66,593 | 51,233 | 30.0% | 65,079 | 2.3% |
| | | | | | | |
Total Expanded Credit Portfolio | | 324,737 | 275,185 | 18.0% | 310,593 | 4.6% |
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1. Including the loans to individual in the consumer finance segment, auto loan portfolio totaled R$ 33,097 MM in Mar/15, R$ 33,552 MM in Dec/14 and R$ 33,854 MM in Mar/14. |
2. Includes acquired payroll loan portfolio. | | | | | | |
3. Includes "Debenture", FIDC, CRI, Floating Rate Notes, Promissory Notes, Acquiring activities related assets and guarantees. | | |
| SANTANDER BRASIL RESULTS |
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BALANCE OF ALLOWANCE FOR LOAN LOSSES / COVERAGE RATIO The balance of allowance for loan losses totaled R$ 14,078 million in March 2015, down 6.5% in 12 months and 3.5% in the quarter. The BR GAAP coverage ratio is obtained by dividing the balance of the allowance for loan losses by loans overdue by more than 90 days. At the close of March 2015, it stood at 180.8%, up 4.2 p.p. in twelve months and 0.8 p.p. in the quarter. | |  |
RENEGOTIATED PORTFOLIO
Credit renegotiations came to R$ 12,745 million in March 2015, down 12.9% intwelve months. These operations include loan agreements that were extended and/or amended to enable their receipt under conditions agreed upon with the clients, including the renegotiation of previously written-off loans. In the quarter, this portfolio fell by 8.4%.
In March 2015, 50.0% of the portfolio was provisioned, versus 50.7% in December 2014 and 51.3% in March 2014. These levels are considered adequate, given the nature of the operations involved.
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RENEGOTIATED PORTFOLIO | | Mar/15 | Mar/14 | Var. | Dec/14 | Var. |
(R$ Million) | | | | Mar/15xMar/14 | | Mar/15xDec/14 |
| | | | | | |
Renegotiated Portfolio | 12,745 | 14,636 | -12.9% | 13,918 | -8.4% |
Allowance for loan losses over renegotiated portfolio | (6,377) | (7,508) | -15.1% | (7,051) | -9.6% |
Coverage % | | 50.0% | 51.3% | -1.3 pp | 50.7% | -0.6 pp |
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| SANTANDER BRASIL RESULTS |
| DELINQUENCY RATIO (OVER 90 DAYS) The over-90-day delinquency ratio reached 3.0% of the total credit portfolio, down 0.8 p.p. in 12 months and 0.3 p.p. in the quarter. The delinquency ratio of the individual segment stood at 4.3%, down 0.8 p.p. in 12 months and 0.5 p.p. in the quarter. Delinquency in the corporate segment came to 2.0%, down 0.6 p.p. year on year and 0.1 p.p. quarter on quarter. | |  |
DELINQUENCY RATIO (15-90 DAYS) The 15-90 day delinquency ratio came to 4.3% in March 2015, 1 p.p. down in twelve months and 0.2 p.p. up in the quarter. The individual delinquency ratio came to 6.8%, up 0.4 p.p. intwelve months and down 0.6 p.p. in the quarter. The corporate ratio fell by 0.7 p.p. intwelve months and moved up 0.3 p.p. in the quarter, reaching 2.5%. | |  |
| SANTANDER BRASIL RESULTS |
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FUNDING
Funding from clients closed March 2015 at R$ 260,722 million, up 16.7% (or R$ 37,255 million) intwelve months and 3.6% in the quarter. In both periods of comparison, the highlights were debentures, real estate credit notes
(LCI), agribusiness credit notes (LCA) and treasury notes.
| | | | | | | |
FUNDING (R$ Million) | | Mar/15 | Mar/14 | Var. | Dec/14 | Var. |
| | | Mar/15xMar/14 | | Mar/15xDec/14 |
| | | | | | |
Demand deposits | | 15,255 | 14,356 | 6.3% | 16,049 | -4.9% |
Saving deposits | | 37,569 | 35,023 | 7.3% | 37,939 | -1.0% |
Time deposits | | 84,008 | 79,891 | 5.2% | 85,867 | -2.2% |
Debenture/LCI/LCA¹ | | 79,731 | 63,698 | 25.2% | 74,276 | 7.3% |
Treasury Notes (Letras Financeiras)² | | 44,159 | 30,499 | 44.8% | 37,583 | 17.5% |
Funding from clients | | 260,722 | 223,467 | 16.7% | 251,714 | 3.6% |
| | | | | | | |
1. Debentures repurchase agreement, Real Estate Credit Notes (LCI) and Agribusiness Credit Notes (LCA). | |
2. Includes Certificates of Structured Operations. | |
CREDIT/FUNDING RATIO
The credit/funding ratio reached 99.0% in March 2015, down 1.2 p.p. in 12 months and up 1.5 p.p. in the quarter.
The liquidity metric adjusted for the (high) reserve requirements and medium/long term funding stood at 85.5% in March 2015, down 7.4 p.p. in 12 months.
The bank has a comfortable liquidity position and a stable and adequate funding structure.
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FUNDING VS. CREDIT (R$ Million) | | Mar/15 | Mar/14 | Var. | Dec/14 | Var. |
| | | Mar/15xMar/14 | | Mar/15xDec/14 |
| | | | | | |
Funding from clients (A) | | 260,722 | 223,467 | 16.7% | 251,714 | 3.6% |
(-) Reserve Requirements | | (32,667) | (40,048) | -18.4% | (30,101) | 8.5% |
Funding Net of Reserve Requirements | | 228,055 | 183,418 | 24.3% | 221,613 | 2.9% |
Borrowing and Onlendings | | 16,090 | 12,531 | 28.4% | 15,737 | 2.2% |
Subordinated Debts | | 15,634 | 14,339 | 9.0% | 14,071 | 11.1% |
Offshore Funding | | 42,083 | 30,886 | 36.3% | 36,116 | 16.5% |
Total Funding (B) | | 301,861 | 241,174 | 25.2% | 287,537 | 5.0% |
Assets under management¹ | | 167,406 | 149,420 | 12.0% | 164,111 | 2.0% |
Total Funding and Asset under management | | 469,267 | 390,594 | 20.1% | 451,648 | 3.9% |
Total Credit (C) | | 258,144 | 223,952 | 15.3% | 245,514 | 5.1% |
C / B (%) | | 85.5% | 92.9% | | 85.4% | |
| | | | | | | |
C / A (%) | | 99.0% | 100.2% | | 97.5% | |
| | | | | | | |
1 - According to Anbima criterion. | | | | | | |
| SANTANDER BRASIL RESULTS |
BIS RATIO The BIS ratio reached 16.0% in March 2015, a reduction of 2.3 p.p. in twelve months and of 1.5 p.p. in the quarter. It is worth mentioning that, as of January 2015, the ratio has been calculated based on the prudential conglomerate, pursuant to Resolution 4,280/13. Therefore, the March figures are not fully comparable with the previous periods. Excluding this effect, the two main factors that explain the annual evolution are the loan portfolio growth and the impact of the phase-in of Basel III. The quarterly evolution was explained by the increase in Deferred Tax Assets (DTAs) arising from the exchange rate variation, in addition to the two factors mentioned above. | |  |
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OWN RESOURCES AND BIS (R$ Million) | | Mar/15 | Mar/14 | Var. | Dec/14 | Var. |
| (Prudential)¹ | | Mar/15xMar/14 | | Mar/15xDec/14 |
| | | | | | |
Tier I Regulatory Capital | | 54,808 | 57,848 | -5.3% | 58,592 | -6.5% |
CET1 | | 50,745 | 54,982 | -7.7% | 55,229 | -8.1% |
Additional Tier I | | 4,062 | 2,866 | 41.8% | 3,364 | 20.8% |
Tier II Regulatory Capital | | 5,659 | 5,630 | 0.5% | 4,971 | 13.8% |
Adjusted Regulatory Capital (Tier I and II) | | 60,467 | 63,479 | -4.7% | 63,563 | -4.9% |
Risk Weighted Assets (RWA) | | 379,000 | 347,173 | 9.2% | 363,728 | 4.2% |
Required Regulatory Capital | | 41,690 | 38,189 | 9.2% | 40,010 | 4.2% |
Adjusted Credit Risk Capital requirement | | 36,425 | 33,496 | 8.7% | 35,528 | 2.5% |
Market Risk Capital requirement | | 3,216 | 2,986 | 7.7% | 2,808 | 14.5% |
Operational Risk Capital requirement | | 2,049 | 1,707 | 20.0% | 1,674 | 22.4% |
Basel Ratio | | 16.0% | 18.3% | -2.3 p.p. | 17.5% | -1.5 p.p. |
Tier I | | 14.5% | 16.7% | -2.2 p.p. | 16.1% | -1.6 p.p. |
- CET1 | | 13.4% | 15.8% | -2.4 p.p. | 15.2% | -1.8 p.p. |
Tier II | | 1.5% | 1.6% | -0.1 p.p. | 1.4% | 0.1 p.p. |
| | | | | | | |
1. From 2015 on considers the prudential conglomerate. | | | | | | |
18
| OUR SHARES |
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CORPORATE GOVERNANCE
With a free-float of 10.9%, result of the voluntary tender offer concluded on October 30, 2014, Santander Brasil is listed on the traditional trading segment of Bolsa de Valores, Mercadorias e Futuros S.A. (BM&F Bovespa). Despite the lower level of requirements of this segment, the Bank maintains the best practices of corporate governance.
SIMPLIFIED OWNERSHIP STRUCTURE
Santander’s ownership structure on March 31st, 2015 was as follows:
| | | | | | | |
OWNERSHIP STRUCTURE | Common shares | % | Preferred share | % | Total share capital (thousand) | Total % |
(thousand) | (thousand) |
| | | | | | | |
Santander Group ¹ | 3,442,307 | 89.0% | 3,275,644 | 87.8% | 6,717,951 | 88.4% |
Treasury Shares | 27,273 | 0.7% | 27,273 | 0.7% | 54,545 | 0.7% |
Free Float | 400,270 | 10.3% | 428,074 | 11.5% | 828,344 | 10.9% |
Total | 3,869,850 | 100.0% | 3,730,991 | 100.0% | 7,600,840 | 100.0% |
| | | | | | |
1- Includes shareholding of Grupo Empresarial Santander, S.L. ; Sterrebeeck B.V. and Santander Insurance Holding, S.L., as well the administrators. | |
| In the first quarter of 2015 Santander Brasil declared R$ 150 million in dividends, with payment scheduled for August 28, 2015. Santander Brasil has a dividends’ policy of quarterly declaration and semi-annual payments. | |  |
PERFORMANCE
| | | | | | | |
SANB11 | | 1Q15 | 1Q14 | Var. 1Q15x1Q14 | 1Q15 | 4Q14 | Var. 1Q15x4Q14 |
| | | | | | | |
Earnings (annualized) per unit ¹ (R$) | | 1.73 | 1.51 | 14.4% | 1.73 | 1.61 | 7.3% |
Dividend + Interest on capital per unit (R$) | | 0.04 | 0.06 | -31.8% | 0.04 | 0.18 | n.a. |
Closing price (R$)² | | 14.1 | 12.6 | 11.9% | 14.1 | 13.5 | 4.5% |
Book Value per unit (R$)3 | | 13.6 | 12.9 | 5.5% | 13.6 | 13.4 | 1.8% |
Market Capitalization(R$ bi)4 | | 53.1 | 47.4 | 11.9% | 53.1 | 50.8 | 4.5% |
| | | | | | | | |
1- Calculation does not consider the fact that the dividends attributed to the preferred shares are 10% higher than those attributed to the common shares. | | | |
2- Closing price refers to historical serie. | | | | | | | |
3- Book Value calculation excludes the goodwill. | | | | | | | |
4-Market capitalization: total Units (Unit = 1 ON + 1 PN) x last Unit's price. | | | | | | | |
| RATINGS |
RATINGS AGENCIES
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 Company is inserted.The table below presents the ratings assigned by the main rating agencies.
| | | Global Scale | | National Scale |
| RATINGS | | |
| | | | | | | | | |
| | | | Local Currency | Foreign Currency | | National |
| Rating Agency | | Long Term | Short Term | Long Term | Short Term | | Long Term | Short Term |
| | | | | | | | | |
| Fitch Ratings (outlook) | | BBB+ (stable) | F2 | BBB+ (negative) | F2 | | AAA (bra) (stable) | F1+ (bra) |
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| | |
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| Standard & Poor’s (outlook) | | BBB- (stable) | A-3 | BBB- (stable) | A-3 | | brAAA (stable) | brA-1+ |
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| Moody's (outlook) | | Baa2 (negative) | Prime-2 | Baa2 (negative) | Prime-2 | | Aaa.br (stable) | Br-1 |
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Ratings assigned according published reports by Rating Agencies. |
| ADDITIONAL INFORMATION – BALANCE SHEET AND MANAGERIAL FINANCIAL STATEMENTS |
|
BALANCE SHEET
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ASSETS (R$ Million) | | Mar/15 | Dec/14 | Sep/14 | Jun/14 | Mar/14 |
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Current Assets and Long Term Assets | | 596,216 | 572,730 | 497,162 | 476,749 | 475,805 |
Cash and Cash Equivalents | | 4,964 | 5,075 | 5,050 | 5,005 | 5,204 |
Interbank Investments | | 48,736 | 39,809 | 56,077 | 32,502 | 31,255 |
Money Market Investments | | 36,619 | 24,704 | 50,028 | 21,115 | 18,915 |
Interbank Deposits | | 2,952 | 4,036 | 2,804 | 2,739 | 2,537 |
Foreign Currency Investments | | 9,166 | 11,068 | 3,244 | 8,648 | 9,803 |
Securities and Derivative Financial Instrument | | 131,493 | 132,271 | 102,175 | 103,862 | 96,242 |
Own Portfolio | | 31,313 | 53,217 | 41,198 | 37,552 | 29,283 |
Subject to Repurchase Commitments | | 57,922 | 49,171 | 34,438 | 42,383 | 43,987 |
Posted to Central Bank of Brazil | | 9,965 | 9,286 | 9,318 | 8,159 | 6,558 |
Pledged in Guarantees | | 17,992 | 12,231 | 10,654 | 9,864 | 10,435 |
Others | | 14,301 | 8,366 | 6,567 | 5,905 | 5,978 |
Interbank Accounts | | 34,291 | 30,308 | 33,554 | 45,328 | 42,712 |
Restricted Deposits: | | 32,837 | 30,270 | 31,705 | 42,641 | 40,218 |
Others | | 1,455 | 38 | 1,849 | 2,686 | 2,494 |
Interbranch Accounts | | 0 | 0 | 2 | 0 | 0 |
Lending Operations | | 244,162 | 231,021 | 219,890 | 211,722 | 208,981 |
Lending Operations | | 258,236 | 245,596 | 234,583 | 226,363 | 224,012 |
Lending Operations Related to Assignment | | 4 | 6 | 10 | 15 | 20 |
(Allowance for Loan Losses) | | (14,078) | (14,582) | (14,704) | (14,656) | (15,050) |
Other Receivables | | 130,277 | 131,892 | 78,263 | 76,448 | 89,440 |
Foreign Exchange Portfolio | | 75,696 | 81,041 | 33,007 | 35,592 | 49,018 |
Tax Credits | | 26,689 | 21,972 | 21,060 | 19,686 | 19,377 |
Others | | 27,891 | 28,879 | 24,196 | 21,170 | 21,045 |
Others Assets | | 2,292 | 2,355 | 2,152 | 1,883 | 1,970 |
Permanent Assets | | 16,075 | 17,226 | 17,776 | 17,451 | 18,807 |
Investments | | 38 | 38 | 44 | 50 | 51 |
Fixed Assets | | 6,783 | 6,923 | 6,499 | 6,363 | 6,704 |
Intangibles | | 9,253 | 10,265 | 11,233 | 11,038 | 12,052 |
Goodwill | | 27,531 | 27,428 | 27,433 | 26,276 | 26,275 |
Intangible Assets | | 7,693 | 7,594 | 7,363 | 7,042 | 6,885 |
(Accumulated Amortization) | | (25,971) | (24,757) | (23,564) | (22,281) | (21,108) |
Total Assets | | 612,291 | 589,956 | 514,938 | 494,200 | 494,612 |
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| ADDITIONAL INFORMATION – BALANCE SHEET AND MANAGERIAL INCOME STATEMENTS |
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LIABILITIES (R$ Million) | | Mar/15 | Dec/14 | Sep/14 | Jun/14 | Mar/14 |
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Current Liabilities and Long Term Liabilities | | 553,030 | 531,085 | 455,129 | 434,865 | 436,052 |
Deposits | | 140,580 | 143,632 | 135,286 | 134,118 | 133,227 |
Demand Deposits | | 15,255 | 16,049 | 14,084 | 14,635 | 14,356 |
Savings Deposits | | 37,569 | 37,939 | 36,627 | 35,779 | 35,023 |
Interbank Deposits | | 3,748 | 3,776 | 3,764 | 4,172 | 3,956 |
Time Deposits | | 84,008 | 85,867 | 80,810 | 79,532 | 79,891 |
Money Market Funding | | 117,102 | 110,353 | 101,545 | 89,945 | 86,279 |
Own Portfolio | | 89,866 | 87,305 | 76,915 | 76,648 | 75,368 |
Third Parties | | 10,400 | 11,851 | 12,138 | 2,300 | 738 |
Free Portfolio | | 16,836 | 11,197 | 12,493 | 10,997 | 10,172 |
Funds from Acceptance and Issuance of Securities | | 83,722 | 74,952 | 75,214 | 69,739 | 66,125 |
Resources from Real Estate Credit Notes, Mortgage Notes, Credit and Similar | | 69,457 | 61,893 | 60,401 | 55,560 | 51,134 |
Securities Issued Abroad | | 12,911 | 11,796 | 13,502 | 12,609 | 13,321 |
Others | | 1,354 | 1,263 | 1,310 | 1,570 | 1,670 |
Interbank Accounts | | 1,284 | 14 | 1,523 | 2,492 | 2,276 |
Interbranch Accounts | | 2,025 | 2,678 | 1,458 | 1,509 | 1,454 |
Borrowings | | 29,274 | 24,444 | 21,853 | 18,131 | 17,627 |
Domestic Onlendings -Official Institutions | | 15,987 | 15,614 | 14,031 | 12,943 | 12,459 |
National Economic and Social Development Bank (BNDES) | | 6,887 | 7,484 | 6,748 | 5,992 | 6,105 |
National Equipment Financing Authority (FINAME) | | 8,774 | 7,788 | 6,976 | 6,759 | 6,149 |
Other Institutions | | 326 | 342 | 307 | 191 | 205 |
Foreign Onlendings | | 0 | 0 | 0 | 9 | 9 |
Derivative Financial Instruments | | 15,247 | 8,813 | 5,525 | 4,472 | 4,543 |
Other Payables | | 147,808 | 150,587 | 98,694 | 101,506 | 112,054 |
Foreign Exchange Portfolio | | 76,831 | 80,297 | 33,264 | 35,090 | 48,548 |
Tax and Social Security | | 17,706 | 17,431 | 17,051 | 17,214 | 15,740 |
Subordinated Debts | | 7,520 | 7,294 | 7,279 | 8,849 | 8,616 |
Debt Instruments Eligible to Compose Capital | | 8,114 | 6,777 | 6,198 | 5,618 | 5,724 |
Others | | 37,639 | 38,788 | 34,903 | 34,736 | 33,426 |
Deferred Income | | 408 | 409 | 341 | 335 | 315 |
Minority Interest | | 1,449 | 1,141 | 1,155 | 997 | 1,040 |
Equity | | 57,403 | 57,321 | 58,313 | 58,003 | 57,204 |
Total Liabilities | | 612,291 | 589,956 | 514,938 | 494,200 | 494,612 |
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| ADDITIONAL INFORMATION – BALANCE SHEET AND MANAGERIAL FINANCIAL STATEMENTS |
|
SUMMARIZED MANAGERIAL FINANCIAL STATEMENT
MANAGERIAL FINANCIAL STATEMENT¹ (R$ Million) | | | | | | |
| 1Q15 | 4Q14 | 3Q14 | 2Q14 | 1Q14 |
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NET INTEREST INCOME | | 7,140 | 6,983 | 6,980 | 6,686 | 7,000 |
Allowance for Loan Losses | | (2,112) | (2,128) | (2,466) | (2,451) | (2,346) |
NET INTEREST INCOME AFTER LOAN LOSSES | | 5,028 | 4,854 | 4,514 | 4,235 | 4,654 |
Fee and commission income | | 2,828 | 2,977 | 2,765 | 2,683 | 2,633 |
General Expenses | | (4,103) | (4,440) | (4,303) | (4,032) | (3,974) |
Personnel Expenses + Profit Sharing | | (1,861) | (1,976) | (1,863) | (1,788) | (1,760) |
Administrative Expenses² | | (2,242) | (2,464) | (2,439) | (2,244) | (2,214) |
Tax Expenses | | (929) | (822) | (768) | (782) | (767) |
Investments in Affiliates and Subsidiaries | | 1 | 2 | 0 | 0 | (0) |
Other Operating Income/Expenses | | (802) | (850) | (481) | (444) | (806) |
OPERATING PROFIT | | 2,022 | 1,721 | 1,728 | 1,661 | 1,741 |
Non Operating Income | | 78 | 28 | 67 | 37 | 9 |
NET PROFIT BEFORE TAX | | 2,100 | 1,749 | 1,795 | 1,697 | 1,749 |
Income Tax and Social Contribution | | (408) | (162) | (282) | (230) | (269) |
Minority Interest | | (60) | (66) | (50) | (30) | (53) |
NET PROFIT | | 1,633 | 1,521 | 1,464 | 1,437 | 1,428 |
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1. Excludes 100% of the goodwill amortization expense, the tax hedge effect and others as mentioned on pages 24 and 25. |
2. Administrative Expenses exclude 100% of the goodwill amortization expense. |
Under Brazilian income tax rules, gains (losses) resulting from the exchange rate variation on foreign currency investments are not taxable (tax deductible). This tax treatment leads to foreign exchange rate exposure in the tax line. A hedge position was set up in order to immunize the net profit from the impact of the foreign exchange variation on the income tax and tax expenses lines.
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FISCAL HEDGE (R$ Million) | | 1Q15 | 4Q14 | 3Q14 | 2Q14 | 1Q14 |
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Net Interest Income | | (4,721) | (1,166) | (1,368) | 380 | 486 |
Tax Expenses | | 513 | 107 | 131 | (57) | (68) |
Income Tax | | 4,208 | 1,059 | 1,237 | (323) | (419) |
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| ACCOUNTING AND MANAGERIAL RESULTS RECONCILIATION |
ACCOUNTING AND MANAGERIAL RESULTS RECONCILIATION
To provide a better understanding of the results in BR GAAP, this report presents the Managerial Income Statement, which includes the adjustments made to the Accounting Income Statement. Note that these adjustments, except from amortization of goodwill,have no effect on net profit. All information, indicators and comments relating to the Income Statement in this report consider the managerial results, except where indicated otherwise.
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ACCOUNTING AND MANAGERIAL RESULTS RECONCILIATION (R$ Million) | | 1Q15 | Reclassifications | 1Q15 |
| | Accounting | Tax Effect of Hedge¹ | Credit Recovery² | Amortization of goodwill³ | Profit Sharing | Others4 | Managerial |
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NET INTEREST INCOME | | 3,490 | (4,721) | 457 | - | - | 614 | 7,140 |
Allowance for Loan Losses | | (2,860) | - | (457) | - | - | (292) | (2,112) |
NET INTEREST INCOME AFTER LOAN LOSSES | | 630 | (4,721) | - | - | - | 322 | 5,028 |
Fee and commission income | | 2,828 | - | - | - | - | - | 2,828 |
General Expenses | | (4,789) | - | - | (949) | 264 | - | (4,103) |
Personnel Expenses + Profit Sharing | | (1,597) | - | - | - | 264 | - | (1,861) |
Administrative Expenses | | (3,191) | - | - | (949) | - | - | (2,242) |
Tax Expenses | | (416) | 513 | - | - | - | - | (929) |
Investments in Affiliates and Subsidiaries | | 1 | - | - | - | - | - | 1 |
Other Operating Income/Expenses | | (1,125) | - | - | - | - | (322) | (802) |
OPERATING INCOME | | (2,871) | (4,208) | - | (949) | 264 | - | 2,022 |
Non Operating Income | | 78 | - | - | - | - | - | 78 |
NET PROFIT BEFORE TAX | | (2,793) | (4,208) | - | (949) | 264 | - | 2,100 |
Income Tax | | 3,800 | 4,208 | - | - | - | - | (408) |
Profit Sharing | | (264) | - | - | - | (264) | - | - |
Minority Interest | | (60) | - | - | - | - | - | (60) |
NET PROFIT | | 684 | - | - | (949) | - | - | 1,633 |
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ACCOUNTING AND MANAGERIAL RESULTS RECONCILIATION (R$ Million) | | 1Q14 | Reclassifications | 1Q14 |
| | Accounting | Tax Effect of Hedge¹ | Credit Recovery² | Amortization of goodwill³ | Profit Sharing | Others4 | Managerial |
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NET INTEREST INCOME | | 8,141 | 486 | 655 | - | - | - | 7,000 |
Allowance for Loan Losses | | (3,001) | - | (655) | - | - | - | (2,346) |
NET INTEREST INCOME AFTER LOAN LOSSES | | 5,140 | 486 | - | - | - | - | 4,654 |
Fee and commission income | | 2,633 | - | - | - | - | - | 2,633 |
General Expenses | | (4,606) | - | - | (909) | 278 | - | (3,974) |
Personnel Expenses + Profit Sharing | | (1,482) | - | - | - | 278 | - | (1,760) |
Administrative Expenses | | (3,124) | - | - | (909) | - | - | (2,214) |
Tax Expenses | | (834) | (68) | - | - | - | - | (767) |
Investments in Affiliates and Subsidiaries | | (0) | - | - | - | - | - | (0) |
Other Operating Income/Expenses | | (806) | - | - | - | - | - | (806) |
OPERATING INCOME | | 1,528 | 419 | - | (909) | 278 | - | 1,741 |
Non Operating Income | | 9 | - | - | - | - | - | 9 |
NET PROFIT BEFORE TAX | | 1,537 | 419 | - | (909) | 278 | - | 1,749 |
Income Tax | | (687) | (419) | - | - | - | - | (269) |
Profit Sharing | | (278) | - | - | - | - 278 | - | 0 |
Minority Interest | | (53) | - | - | - | - | - | (53) |
NET PROFIT | | 518 | - | - | (909) | - | - | 1,428 |
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ACCOUNTING AND MANAGERIAL RESULTS RECONCILIATION |
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ACCOUNTING AND MANAGERIAL RESULTS RECONCILIATION (R$ Million) | | 4Q14 | Reclassifications | 4Q14 |
| | Accounting | Tax Effect of Hedge¹ | Credit Recovery² | Amortization of goodwill³ | Profit Sharing | Others4 | Managerial |
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NET INTEREST INCOME | | 6,483 | (1,166) | 667 | - | - | - | 6,983 |
Allowance for Loan Losses | | (2,795) | - | - 667 | - | - | - | (2,128) |
NET INTEREST INCOME AFTER LOAN LOSSES | | 3,688 | (1,166) | - | - | - | - | 4,854 |
Fee and commission income | | 2,977 | - | - | - | - | - | 2,977 |
General Expenses | | (5,201) | - | - | (943) | 182 | - | (4,440) |
Personnel Expenses + Profit Sharing | | (1,794) | - | - | - | 182 | - | (1,976) |
Administrative Expenses | | (3,407) | - | - | (943) | - | - | (2,464) |
Tax Expenses | | (715) | 107 | - | - | - | - | (822) |
Investments in Affiliates and Subsidiaries | | 2 | - | - | - | - | - | 2 |
Other Operating Income/Expenses | | (850) | - | - | - | - | - | (850) |
OPERATING INCOME | | (99) | (1,059) | - | (943) | 182 | - | 1,721 |
Non Operating Income | | 28 | - | - | - | - | - | 28 |
NET PROFIT BEFORE TAX | | (71) | (1,059) | - | (943) | 182 | - | 1,749 |
Income Tax | | 897 | 1,059 | - | - | - | - | (162) |
Profit Sharing | | (182) | - | - | - | (182) | - | - |
Minority Interest | | (66) | - | - | - | - | - | (66) |
NET PROFIT | | 578 | - | - | (943) | - | - | 1,521 |
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1.Fiscal Hedge: Under Brazilian income tax rules, gains (losses) resulting from the exchange rate variation on the foreign currency investments are not taxable (tax deductible). This tax treatment leads to foreign exchange rate exposure in the tax line. A hedge position was set up in order to immunize the net profit from the impact of the foreign exchange variation on the income tax and tax expenses lines.
2.Credit Recovery: Reclassified from lending operations to allowance for loan losses.
3.Amortization of goodwill: Reversal of goodwill amortization expenses.
4.Others: Refers to theexchange rate variation adjustment.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.
Date: April 28, 2015
Banco Santander (Brasil) S.A. |
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| By: | /S/ Amancio Acurcio Gouveia
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| | Amancio Acurcio Gouveia
Officer Without Specific Designation
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| By: | /S/ Angel Santodomingo Martell
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| | Angel Santodomingo Martell
Vice - President Executive Officer
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