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 September, 2021
Commission File Number: 001-34476
BANCO SANTANDER (BRASIL) S.A.
(Exact name of registrant as specified in its charter)
Avenida Presidente Juscelino Kubitschek, 2041 and 2235
Bloco A – Vila Olimpia
São Paulo, SP 04543-011
Federative Republic of Brazil
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F ___X___ Form 40-F _______
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes _______ No ___X____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes _______ No ___X____
Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes _______ No ___X____
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
Index
Statement of Comprehensive Income. 14
Statements of Changes in Stockholders' Equity – Bank. 15
Statements of Changes in Stockholders' Equity – Consolidated. 16
2. Presentation of Financial Statements. 20
3. Significant Accounting Policies. 21
4. Cash and Cash Equivalents. 21
6. Securities and Derivatives Financial Instruments. 23
8. Credit Portfolio and Allowance for Expected Losses Associated with Credit Risk. 38
10. Tax Assets and Liabilities. 42
12. Dependences Information and Foreign Subsidiary. 46
13. Investments in Affiliates and Subsidiaries Subsidiary. 47
17. Other Financial Liabilities. 58
22. Income from Services Rendered and Banking Fees. 74
24. Other Administrative Expenses. 74
25. Other Operating Income. 74
26. Other Operating Expenses. 75
28. Employee Benefit Plans - Post-Employment Benefits. 75
29. Risk Management, Capital and Sensitivity Analysis. 76
Performance Review
Dear Stockholders:
We present the Performance Commentary to the Condensed Individual and Consolidated Interim Financial Statements of Banco Santander (Brasil) S.A. (Banco Santander or Banco) for the period ended September 30, 2021, prepared in accordance with accounting practices adopted in Brazil, established by Corporation Law, together with the rules of the National Monetary Council (CMN), the Central Bank of Brazil (Bacen) and the model of the document provided for in the Accounting Plan of Institutions of the National Financial System (Cosif) and the Securities Commission (CVM), which do not conflict with the rules issued by Bacen.
The Condensed Consolidated Interim Financial Statements prepared based on the international accounting standards issued by the International Accounting Standards Board (IASB) for the period ended September 30, 2021 were simultaneously disclosed on the website www.santander.com.br/ri.
1. Macroeconomic Environment
At the end of the third quarter of 2021, Banco Santander observed the median of projections regarding the performance of the Brazilian economy indicating a growth of the Brazilian GDP of 5.0% in 2021, compared to a contraction of 4.06% in the previous year. The projection for 2021 is lower than that observed at the end of the second quarter and, in the Bank's assessment, was influenced by the recent publication that the actual result observed in that period was below the market consensus - the median of the estimates indicated seasonally adjusted quarterly expansion of 0 .2% for the second quarter of 2021. The economic activity data released came in line with our GDP growth estimate in the previous quarter (we also estimated a 0.2% increase) and we reinforce our expectation that the Brazilian economy will grow 5 .1% in 2021.
Also, in this quarter, the Bank witnessed the interannual variation of the IPCA reaching 9.68%, a level well above the target set for 2021 (3.75%) and also above the 8.5% projected by Santander for the same year. The Bank understands that this inflationary environment and its balance of risks were the motivators for the Central Bank of Brazil to raise the basic interest rate of 4.25% p.a. to 6.25% p.a. between the previous quarter and the last Copom meeting. Santander believes that this approach to the Selic rate increases the chance that inflation will converge to the established targets within the relevant time horizon for monetary policy. In this sense, the Bank projects that the Selic rate will reach 8.25 % p.a. at the end of 2021 and 8.5% p.a. at the end of 2022.
Regarding the behavior of the exchange rate, Banco Santander saw the quotation of the Brazilian currency against the US dollar end the second quarter of 2021 quoted at R$5.00/US$. That is, below the rate of R$5.80/US$ seen at the end of the previous quarter. This trajectory of devaluation of the real is in line with our forecast that the exchange rate will end the year 2021 quoted at R$5.25/US$.
The performances mentioned above took place in the midst of an international environment that the Bank considered favorable and which highlighted the following theme: the process of reopening and the resumption of economic activity. Regarding the Coronavirus Pandemic, the concern with the Delta variant is less (at the margin), as the situation is apparently under control (from the point of view of hospitalization and deaths). In China, concern about the economic slowdown at the beginning of the second half of the year has already provoked a reaction from the Chinese government, which has returned to adding stimulus to the economy (mainly through the credit channel). It is noteworthy that this stimulus will be smaller than that of 2020, but should reduce the risks of a pronounced slowdown ahead. On the inflation side, the scenario has evolved with the cooling of inflation in the latest readings. With commodity prices losing pace recently, the base effect dissipating and the bottlenecks caused by the reopening of economies being resolved, the latest data already show inflation starting to decline, although it still continues to show numbers considerably above the target. Therefore, although the IPCA variation should end above the inflation target in 2021 and 2022, we continue to assess that there will be a trajectory of convergence towards lower levels, with the achievement of the target in 2023 being a feasible scenario.
2. Performance
2.1) Corporate Income
Consolidated Income Statements (R$ Millions) | 9M21 | 9M20 | annual changes % | 3Q21 | 2Q21 | quarter changes % | |||||
Financial Income | 69,809.1 | 101,346.7 | (31.1) | 39,555.9 | (7,503.8) | (1,030.3) | |||||
Financial Expenses | (40,047.7) | (94,402.8) | (57.6) | (31,149.0) | 20,918.0 | (291.5) | |||||
Gross Profit from Financial Operations (a) | 29,761.3 | 6,943.9 | 328.6 | 8,406.9 | 13,414.2 | 121.9 | |||||
Other Operating (Expenses) Income (a) | (11,540,6) | (8,716.6) | 32.4 | (4,012.4) | (3,492.5) | 230.4 | |||||
Operating Income | 18,220.8 | (1,772.6) | (1,127.9) | 4,394.5 | 9,921.7 | 83.6 | |||||
Non-Operating Income | 51,3 | 252.5 | (79.7) | 23.2 | (1.1) | (4,759.9) | |||||
Income Before Taxes on Income and Profit Sharing | 18,272.0 | (1,520.2) | (1,302.0) | 4,417.7 | 9,920.6 | 84.2 | |||||
Income Tax and Social Contribution (a) | (5,552.0) | 12,653.3 | (143.9) | 374.9 | (5,306.5) | 4.6 | |||||
Profit Sharing | (1,441.6) | (1,421.2) | 1.4 | (501.2) | (468.6) | 207.6 | |||||
Non-Controlling Interest | (87.1) | (101.1) | 13.9 | (19.1) | (42.6) | 104.4 | |||||
Consolidated Net Income | 11,191.3 | 9,610.6 | 16.4 | 4,272.2 | 4,102.9 | 172.8 | |||||
OPERATING RESULT BEFORE ADJUSTED TAXATION | 9M21 | 9M20 | annual | 3Q21 | 2Q21 | quarterly |
(R$ Million) | ||||||
Result before Taxation on Profit and Participation | 18,272.0 | (1,520.0) | (1,302.1) | 4,417.7 | 9,920.5 | (55.5) |
Foreign Exchange Hedge | 1,454.7 | 17,519.2 | (91.7) | 2,247.1 | (2,841.9) | (179.1) |
Operating Income Before Adjusted Taxation | 19,726.7 | 15,999.2 | 23.3 | 6,664.8 | 7,078.6 | (5.8) |
INCOME TAX | 9M21 | 9M20 | annual | 3Q21 | 2Q21 | quarterly |
(R$ Million) | ||||||
Income Tax and Social Contribution | (5,552.0) | 12,653.0 | (143.9) | 374.9 | (5,306.5) | (107.1) |
Foreign Exchange Hedge | (1,454.7) | (17,519.2) | (91.7) | (2,247.1) | 2,841.9 | (179.1) |
Adjusted Income Tax and Social Contribution | (7,006.7) | (4,866.2) | 44.0 | (1,872.2) | (2,464.6) | (24.0) |
a) Foreign Exchange Hedge of Grand Cayman and Luxembourg Branches
Banco Santander operates branches in the Cayman Islands and Luxembourg, which are used mainly to raise funds in the international capital and financial markets, to provide the Bank with lines of credit that are extended to its customers for trade financing abroad and working capital. To cover exposure to exchange variations, the Bank uses external funding and derivative instruments. In accordance with Brazilian tax rules, as of January 2021, 50% of the gains or losses arising from the impact of the appreciation or devaluation of the Real on foreign investments started to be computed in the determination of taxable income and in the calculation basis of the Contribution Social on Net Income (CSLL) of the investing legal entity domiciled in the country, while the gains or losses on obligations and derivative instruments used as coverage are 100% taxable or deductible. The purpose of these derivative instruments is to protect net income after taxes. As of 2022, all exchange variation will be computed in the IRPJ and CSLL tax base.
The different tax treatment of such exchange differences results in volatility in the operating result and in the tax expense accounts (PIS/COFINS) and income taxes (IR/CSLL), as shown below:
Foreign Exchange Hedge of the Grand Cayman and Luxembourg Branches | 9M21 | 9M20 | annual changes % | 3T21 | 2T21 | quarterly changes % | ||||
Exchange Variation - Profit from Financial Operations | 2,436.1 | 21,807.3 | (88.8) | 4,380.5 | (6,959.5) | (162.9) | ||||
Derivative Financial Instruments - Profit from Financial Operations | (4,058.3) | (40,098.7) | (89.9) | (6,927.6) | 10,278.7 | (167.4) | ||||
Income Tax and Social Contribution | 1,454.7 | 17,519.2 | (91.7) | 2,247.1 | (2,841.9) | (179.1) | ||||
PIS/Cofins - Tax Expenses | 167.4 | 772.2 | (78.3) | 300.8 | (477.9) | (162.9) |
2.2) Assets and Liabilities
Consolidated Balance Sheets | Sep/21 | Dec/20 | annual changes % | ||
Current Assets | 532,419,5 | 603,330.9 | (11.8) | ||
Long-Term Assets | 437,621,9 | 399,058.1 | 9.7 | ||
Total Assets | 970,041,4 | 1,002,389.0 | (3.2) | ||
Current and Long-Term Liabilities | 889,443,7 | 921,914.6 | (3.5) | ||
Deferred Income | 423,7 | 355.5 | 19.2 | ||
Non-Controlling Interest | 1,344,5 | 1,150.7 | 16.8 | ||
Stockholders' Equity | 78,829,6 | 78,968.2 | (0.2) | ||
Total Liabilities and Stockholders' Equity | 970,041,4 | 1,002,389.0 | (3.2) | ||
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2.3) Stockholders’ Equity
On September 30, 2021, Banco Santander's consolidated stockholders' equity decreased by 0.2% compared to December 31, 2020.
The variation in Stockholders' Equity between September 30, 2021 and December 31, 2020 was mainly due to the net income for the period in the amount of R$11,191 million, the negative equity valuation adjustment (bonds and securities and financial instruments derivatives) in the amount of R$2,686 million and the capital reduction in the amount of R$2,000 million, the payment of dividends in the amount of R$3,000 million and interest on equity in the amount of R$3,400 million.
For additional information, see note 20.
2.4) Basel Index
Bacen determines that financial institutions maintain a Reference Equity (PR), PR Level I and Principal Capital compatible with the risks of their activities, higher than the minimum requirement of the Required Reference Equity, represented by the sum of the credit risk and risk portions market and operational risk.
As established in CMN Resolutions No. 4,193/2013 and No. 4,783/2020, until March 2021 the PR requirement was at 10.25%, including 8.00% Minimum Reference Equity plus 1.25% Additional Conservation of Capital and 1.00% of Systemic Additional. PR Level I was 8.25% and Minimum Core Capital 6.75%.
Throughout 2021, the Capital Conservation Supplement goes through two increases, reaching 1.625% in April and 2.00% in October. Thus, in September the PR requirement is 10.625%, and at the end of 2021 it will be 11.00%. For September, 8.00% of the Minimum Reference Equity plus 1.625% of Additional Capital Conservation and 1.00% of Systemic Additional is considered, with the requirement of PR Level I of 8.625% and Minimum Principal Capital of 7.125%. By the end of 2021, the PR requirement reaches 11.0%, considering an 8.00% Minimum Reference Equity plus 2.00% Capital Conservation Additional and 1.00% Systemic Additional, with a requirement of PR Tier I and Minimum Principal Capital at the end of 2021 of 9.00% and 7.50%, respectively.
Continuing with the adoption of the rules established by CMN Resolution No. 4,192/2013, as of January 2015, the Prudential Consolidated, defined by CMN Resolution No. 4,280/2013, came into effect.
The index is calculated on a consolidated basis based on information from the Prudential Consolidated, as shown below:
Basel Index % | Sep/21 | Dec/20 |
Basel I Ratio | 13.14 | 14.06 |
Basel Principal Capital | 11.97 | 12.87 |
Basel Regulatory Capital | 14.30 | 15.25 |
2.5) Main Subsidiaries
The table below shows the balances of total assets, stockholders' equity, net income and loan operations portfolio for the period ended September 30, 2021, of Banco Santander's main subsidiaries:
Subsidiaries (R$ Millions) | Total | Stockholders' | Net | Loan | Ownership/ | ||||
Aymoré Crédito, Financiamento e Investimento S.A. | 58,109.6 | 2,412.0 | 869.8 | 52,898.8 | 100.0% | ||||
Santander Leasing S.A. Arrendamento Mercantil | 14,230.5 |
| 11,138.9 |
| 195.8 |
| 2,362.8 |
| 100.0% |
Santander Corretora de Seguros, Investimento e Serviços S.A. | 11,603.4 |
| 4,363.2 |
| 767.8 |
| - |
| 100.0% |
Banco RCI Brasil S.A. | 11,125.3 | 1,668.2 | 120.8 | 8,665.2 | 39.9% | ||||
Atual Serviços de Recuperação de Créditos e Meios Digitais S.A. | 2,657.7 |
| 2,637.6 |
| 44.0 |
| - |
| 100.0% |
Santander Corretora de Câmbio e Valores Mobiliários S.A. | 1,320.6 | 799.2 | 68.8 | - | 100.0% |
The financial statements of the above Subsidiaries were prepared in accordance with the accounting practices adopted in Brazil, established by the Corporation Law, together with the rules of the CMN, Bacen and the document model provided for in the Accounting Plan of Cosif Institutions, of CVM, which do not conflict with the rules issued by Bacen, without the elimination of operations with affiliates.
3. Corporate Restructuring
During the period ended September 30, 2021 and the year ended December 31, 2020, several corporate movements were implemented with the aim of reorganizing the operations and activities of the entities in accordance with Banco Santander's business plan.
For additional information, see the explanatory note to the financial statements No. 13.
4. Strategy and Rating Agencies
For information regarding the Bank's strategy and rating at rating agencies, see the Results Report available at www.santander.com.br/ri.
5. Corporate Governance
The Board of Directors of Banco Santander met and resolved:
On September 16, 2021, it approved the re-election of Ms. Monique Silvano Arantes Bernardes as Ombudsman of the Company for a new term of 1 (one) year.
On July 27, 2021, it approved the Consolidated Financial Statements of Banco Santander, prepared in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by Bacen and the Interim Consolidated Financial Statements of Banco Santander prepared in accordance with the Standards Financial Reporting Internationals (IFRS), both for the semester ended June 30, 2021.
On July 27, 2021, it approved the proposal for declaration and payment of interest on equity, in the amount of R$ 3,4 billion, paid on September 3, 2021, without any remuneration by way of monetary restatement.
On July 1, 2021, it approved the election of Mr. Rogério Magno Panca and Sandro Mazerino Sobral as Officers without a specific designation of the Company.
On June 1, 2021, it approved the election of Ms. Vania Maria da Costa Borgerth as a member of the Company's Audit Committee.
On May 3, 2021, it approved the election of the members of the Company's Executive Board for a new term.
On May 3, 2021, it approved the election of the members of the Advisory Committees to the Company's Board of Directors for a new term.
On April 27, 2021, it approved the proposal for the declaration and payment of interim and interim dividends totaling R$ 3 billion, paid on June 2, 2021 without any remuneration as monetary restatement.
On April 27, 2021, it approved the Management Report and the Company's Financial Statements in BRGAAP and IFRS for the first quarter of 2021.
On March 31, 2021, it approved the partial spin-off of the Company, which resulted in the segregation of its shares issued by Getnet, with version 2 of the split portion to Getnet, pursuant to the Protocol and Justification of the Partial Spin-off of Santander (" Partial Spin-off”).
On March 1, 2021, it became aware of the resignation request presented by Tarcila Reis Corrêa Ursini as a member of the Company's Sustainability Committee.
On February 25, 2021, it approved the proposed spin-off of the payment methods operation, carried out by the subsidiary, Getnet Acquiring and Services for Means of Payment SA (“Getnet”), in order to concentrate the Group's technology and payments business Santander within PagoNxt, a new technology-focused global payments platform.
On February 2, 2021, it approved the Individual and Individual and Consolidated Condensed Interim Financial Statements of Banco Santander, prepared in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by Bacen for the year ended December 31, 2020.
On February 2, 2021, it approved, continuing the buyback program that expired on November 4, 2020, a new buyback program for Units and ADRs issued by Banco Santander, directly or through its Cayman branch, to be maintained in treasury or subsequent sale.
On February 2, 2021, it approved the proposal for declaration and payment of dividends, in the amount of R$ 512 million, paid on March 3, 2021, without any remuneration as monetary restatement.
The resolutions of the Board of Directors for the year 2020 are described in the Management Report of the Individual and Individual and Consolidated Condensed Interim Financial Statements of December 31, 2020.
6. Risk Management
Bacen published on February 23, 2017, CMN Resolution No. 4,557, which provides for the risk and capital management structure (GIRC) which came into effect from the same year. The resolution highlights the need to implement an integrated risk and capital management structure, definition of an integrated stress test program and Risk Appetite Statement (RAS - Risk Appetite Statement), constitution of a Risk Committee, definition of a disclosure policy of published information, appointment of director for risk management, director of capital and director responsible for the information disclosure policy. Banco Santander develops the necessary actions on a continuous and progressive basis, aiming at adherence to the resolution. No relevant impacts arising from this standard were identified.
For more information, see note 29 to this publication.
Capital Management Structure
Banco Santander's capital management structure has robust governance, which supports the processes related to this issue and establishes the attributions of each of the teams involved. In addition, there is a clear definition of the guidelines that must be adopted for the effective management of capital. Further details can be found in the Risk and Capital Management Framework, available on the Investor Relations website.
Internal Audit
The Internal Audit reports directly to the Board of Directors, and the Audit Committee is responsible for its supervision.
The Internal Audit is a permanent function, independent from any other function or unit, whose mission is to provide the Board of Directors and senior management with independent assurance on the quality and effectiveness of internal control and risk management processes and systems (current or emerging) and government, thus contributing to the protection of the organization's value, solvency and reputation. Internal Audit has a quality certificate issued by the Institute of Internal Auditors (IIA).
In order to fulfill its functions and coverage risks inherent to Banco Santander's activity, the Internal Audit has a set of internally developed tools that are updated when necessary. Among them, the risk matrix stands out, used as a planning tool, prioritizing the risk level of the auditable universe considering, among others, its inherent risks, the last audit rating, the degree of compliance with the recommendations and its dimension. The work programs, which describe the audit tests to be performed, are periodically reviewed.
The Audit Committee and the Board of Directors favorably analyzed and approved the Internal Audit work plan for the year 2021.
7. People
With the public health crisis unleashed in early 2020, care has never been so much talked about. Take care of yourself and the other. And at Banco Santander, we continue to take care of our people, an essential element in the Company. After all, they are the ones who think, design, develop, interact and build what Banco Santander wants to be. This is why the Bank invests in each of the 49,286 employees here in Brazil.
On the subject of Health, we designed our internal protocol of action in the containment of COVID-19, guided by Organs sanitary and health agencies. We have the Telemedicine service in partnership with Hospital Albert Einstein, guaranteeing high standard medical care to 100% of employees and their dependents, in addition to investing in the Emotional Health Program that has supported our people in adapting to and coping with social distancing.
For the development of our people, the Corporate University – Academia Santander works towards a strong, transversal culture, enabling everyone, online and in person, to improve what they already know and explore new possibilities. From mandatory certifications for certain functions to Digital Leadership courses, the most important thing is to get out of your comfort zone and invest in yourself by expanding your knowledge and repertoire.
Banco Santander supports leaders and managers so that they are close and available. This performance is based on three pillars: Feedback, Open Chat and Personalized Recognition, ensuring that everyone is aligned through recurrent and frank conversations, career guidance and special moments to reward the teams' growth.
Banco Santander values a diverse environment, where every skill and every difference is valued. An example is the Affinity Group, created to promote diversity and inclusion based on the 5 pillars: Female Leadership; Racial Equity; Disabled people; Diversity of Trainings, Experiences and Generations and the LGBT+ pillar. Another good example is the Talent Show. In it, Banco Santander opens space to learn about the most different performances and explore the universe of skills that exist at the Bank, allowing interaction and fraternization among colleagues.
In the Customer sphere, we remain focused on offering the best products and services in a Simple, Personal and Fair manner. To this end, the process of updating our teams is essential and, therefore, in August 2021, the traditional café with our CEO, Sergio Rial, presented a debate with other Bank executives, talking about innovation and the importance of technological forces that will change our world. For this meeting, we had more than 32 thousand connections.
In August 2021, we also had the Blood Donation Campaign, where we had excellent participation, having saved more than 7,000 lives.
In September 2021, we had the Santander Week, in all Santander units around the world. This year, our main focus is on the “Joy of Serving” our customers, employees and society. Within the week, in addition to actions, our challenge was to make the greatest “Amigo de Valor” of all time. Amigo de Valor supports public policies aimed at guaranteeing the rights of children and adolescents and allows the allocation of part of the income tax due directly to the Child and Adolescent Law Funds.
8. Sustainable Development
Banco Santander Brasil's Sustainability strategy is based on three pillars: (i) Strategic and efficient use of Environmental Resources, (ii) Development of Potentials and (iii) Resilient and Inclusive Economy. The Bank's vision, through these pillars, is to contribute to a better, more prosperous and fair society, maintaining excellence and responsibility in internal management, based on ethical values and technology at the service of people and businesses.
We recognize our role as a financial institution in fostering sustainable business, helping society to prosper. We highlight some initiatives in 3Q21:
· We made R$42.8 billion feasible in sustainable businesses, of which 61% via bonds.
· We made available more than R$270 MM in credit lines directed to cooperatives and agribusinesses in the Amazon region.
· We held the “Bioeconomia em Foco” Conference. The initiative is part of the Amazônia Plan, a commitment launched in July 2020 between Bradesco, Itaú and Santander with measures to enhance and scale up solutions that promote sustainable development in the region.
We maintained our actions in support of society and continued with our private social investment strategy with our programs to support children, adolescents, the elderly and entrepreneurs.
In September, we launched the 19th edition of Amigo de Valor, which has already mobilized R$ 160 MM to support 600 initiatives across the country, benefiting more than 54 thousand people in 18 years. The campaign is open to employees and customers and ends in November 2021. To join, access the website https://www.santander.com.br/sustentabilidade/sociedade/amigo-de-valor.
We highlight two recognitions in the period:
· Fortune - Change the World 2021
· Most Sustainable Company of Época Negócios 360°
9. Effects of the Pandemic - COVID-19
The Bank monitors the effects of this pandemic that affect its operations and that may adversely affect its results. Since the beginning of the pandemic in Brazil, Committees have been set up to monitor the effects of the spread and its impacts, in addition to government actions to mitigate the effects of COVID-19.
The Bank maintains its operational activities, observing the protocols of the Ministry of Health and other Authorities. Among the actions taken, we highlight (a) the dismissal of employees from the risk group and intensification of home office work, (b) the definition of a monitoring protocol, with health professionals, for employees and family members who have the symptoms of COVID-19 and (c) increased communication about prevention measures and remote means of care.
Future impacts related to the pandemic, which have a certain degree of uncertainty as to their duration and severity and which, therefore, cannot be accurately measured at this time, will continue to be monitored by Management.
10. SX & Open Finance
Our performance, which is based on proximity to the customer and on offering products and services tailored to the needs of each profile, differentiates us in the face of the current transformation of the financial sector. Therefore, we are expanding SX, Santander's special PIX, which totaled R$225 billion in PIX sent this quarter, representing a market share of 16% in the same period.
11. Independent Audit
Banco Santander's policy, including its subsidiaries, in contracting services unrelated to the audit of Financial Statements by its independent auditors is based on Brazilian and international auditing standards, which preserve the auditor's independence. This rationale provides for the following: (i) the auditor must not audit its own work, (ii) the auditor must not exercise managerial functions for its client, (iii) the auditor must not promote the interests of its client, and (iv) need for approval of any services by the Bank's Audit Committee.
Pursuant to CVM Instruction 381/2003, Banco Santander informs that in the period ended September 30, 2021, PricewaterhouseCoopers did not provide services unrelated to the independent audit of the Financial Statements of Banco Santander and its subsidiaries superior to 5% of total fees related to independent audit services.
Furthermore, the Bank confirms that PricewaterhouseCoopers has procedures, policies and controls in place to ensure its independence, which include an assessment of the work performed, including any service other than an independent audit of the Financial Statements of Banco Santander and its subsidiaries. This assessment is based on applicable regulations and accepted principles that preserve the auditor's independence. The acceptance and provision of professional services unrelated to the audit of the Financial Statements by its independent auditors during the period ended September 30, 2021, did not affect the independence and objectivity in conducting the external audit work carried out at Banco Santander and other entities of the Group, since the above principles have been observed.
The Board of Directors
The Executive Board
(Authorized at the Board of Directors' Meeting of 10/26/2021)
Balance Sheet
Bank | Consolidated | ||||
Notes | 9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | |
Current Assets | 532,960,798 | 586,324,279 | 532,419,508 | 603,330,917 | |
Cash | 4 | 15,262,858 | 19,522,250 | 15,276,568 | 19,512,315 |
Financial Instruments | 457,335,913 | 511,695,788 | 452,372,110 | 523,139,590 | |
Interbank Investments | 5 | 100,682,208 | 112,963,929 | 47,090,422 | 68,116,477 |
Securities and Derivative Financial Instruments | 6 | 76,274,178 | 96,534,510 | 89,245,063 | 107,235,066 |
Derivative Financial Instruments | 6 | 15,819,533 | 17,886,650 | 13,754,806 | 18,446,009 |
Lending Operations | 8 | 124,092,741 | 114,776,536 | 153,242,775 | 141,271,392 |
Others Assets Instruments | 9 | 140,467,253 | 169,534,163 | 149,039,044 | 188,070,646 |
Leasing Operations | - | - | 1,085,291 | 905,502 | |
Provisions for Expected Losses Associated with Credit Risk | 8.e | (6,664,352) | (7,078,539) | (8,291,520) | (8,563,593) |
Other Assets | 11 | 65,390,016 | 61,096,086 | 70,107,070 | 67,180,324 |
Current Tax Assets |
| 1,636,363 | 1,088,694 | 1,869,989 | 1,156,779 |
Long-Term Assets | 444,135,220 | 403,900,472 | 437,621,918 | 399,058,061 | |
Financial Instruments | 377,355,738 | 331,190,945 | 387,810,354 | 340,476,305 | |
Interbank Investments | 5 | 32,661,170 | 30,940,159 | 2,209,252 | 1,581,776 |
Securities and Derivative Financial Instruments | 6 | 138,857,148 | 119,283,560 | 144,600,288 | 126,013,272 |
Derivative Financial Instruments | 6 | 14,323,857 | 14,394,066 | 14,431,509 | 14,394,066 |
Lending Operations | 8 | 187,669,626 | 164,803,732 | 222,725,368 | 196,839,325 |
Others Assets Instruments | 9 | 3,843,937 | 1,769,428 | 3,843,937 | 1,647,866 |
Leasing Operations | - | - | 1,481,954 | 1,565,882 | |
Provisions for Expected Losses Associated with Credit Risk | 8.e | (16,726,600) | (14,756,906) | (18,721,961) | (16,503,895) |
Other Assets | 11 | 11,305,187 | 15,179,345 | 13,916,935 | 17,774,260 |
Tax Assets | 35,958,701 | 36,879,209 | 41,120,860 | 41,894,356 | |
Current |
| 2,066,681 | 1,130,228 | 2,696,317 | 1,973,522 |
Deferred | 10 | 33,892,020 | 35,748,981 | 38,424,543 | 39,920,834 |
Investments | 25,519,737 | 23,208,562 | 422,521 | 332,851 | |
Investments in Associates and Subsidiaries | 13 | 25,495,322 | 23,187,617 | 398,052 | 311,852 |
Other Investments | 24,415 | 20,945 | 24,469 | 20,999 | |
Fixed Assets | 14 | 5,858,603 | 6,102,538 | 6,175,802 | 7,046,685 |
Real Estate for Use | 2,465,280 | 2,443,916 | 2,755,003 | 2,744,391 | |
Other Fixed Assets in Use | 12,882,929 | 12,405,737 | 13,105,172 | 14,220,916 | |
(Accumulated Depreciation) | (9,489,606) | (8,747,115) | (9,684,373) | (9,918,622) | |
Intangible | 15 | 4,863,854 | 6,096,779 | 5,415,453 | 6,471,617 |
Goodwill on Acquisition of Subsidiaries | 27,220,515 | 27,220,515 | 28,523,504 | 27,886,642 | |
Other Intangible Assets | 10,155,162 | 9,510,686 | 10,455,976 | 10,208,203 | |
(Accumulated Amortizations) | (32,511,823) | (31,937,411) | (32,927,165) | (33,416,826) | |
Total Assets | 977,096,018 | 990,224,751 | 970,041,426 | 1,002,388,978 |
The accompanying notes from Management are an integral part of these financial statements.
Bank | Consolidated | ||||
Notes | 9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | |
Current Liabilities | 602,906,474 | 639,939,624 | 602,423,116 | 655,520,344 | |
Deposits and Other Financial Instruments | 588,625,269 | 612,837,974 | 582,526,889 | 604,543,402 | |
Deposits | 16 | 295,691,515 | 292,520,822 | 293,281,433 | 290,741,035 |
Money Market Funding | 16 | 113,911,303 | 119,188,451 | 109,576,954 | 114,214,008 |
Local Borrowings | 16 | 70,525,470 | 53,750,603 | 70,527,325 | 53,790,402 |
Domestic Onlendings - Official Institutions | 16 | 4,281,074 | 4,920,596 | 4,281,074 | 4,920,596 |
Funds from Acceptance and Issuance of Securities | 16 | 28,993,971 | 36,043,882 | 23,079,044 | 30,549,046 |
Derivative Financial Instruments | 6 | 16,367,160 | 17,389,567 | 14,575,721 | 18,372,819 |
Other Financial Liabilities | 17.a | 58,854,776 | 89,024,053 | 67,205,338 | 91,955,496 |
Other Liabilities | 13,669,520 | 26,145,866 | 17,758,135 | 48,710,732 | |
Provision for Tax Risks and Legal Obligations | 19.b | 33,837 | 33,573 | 117,456 | 115,852 |
Provision for Judicial and Administrative Proceedings - Labor and Civil Lawsuits | 19.b | 2,145,947 | 2,343,001 | 2,242,055 | 2,457,423 |
Other Provisions | 18 | 1,910,732 | 1,348,726 | 5,996,788 | 5,365,387 |
Others | 18 | 9,579,004 | 22,420,566 | 9,401,836 | 40,772,070 |
Current Tax Liabilities | 10 | 611,685 | 955,784 | 2,138,092 | 2,266,210 |
Long-Term Liabilities | 294,734,807 | 270,788,267 | 287,020,596 | 266,394,217 | |
Deposits and Other Financial Instruments | 245,446,328 | 232,775,324 | 227,634,613 | 222,518,755 | |
Deposits | 16 | 103,912,119 | 99,950,659 | 104,545,367 | 99,310,763 |
Money Market Funding | 16 | 19,406,768 | 40,783,009 | 19,406,768 | 40,783,009 |
Local Borrowings | 16 | 4,456,593 | 1,221,159 | 4,456,593 | 1,221,159 |
Domestic Onlendings - Official Institutions | 16 | 7,357,454 | 7,827,793 | 7,357,454 | 7,827,793 |
Funds from Acceptance and Issuance of Securities | 16 | 77,277,737 | 51,015,924 | 58,811,919 | 40,078,721 |
Derivative Financial Instruments | 6 | 16,701,515 | 17,737,559 | 16,722,370 | 17,896,646 |
Other Financial Liabilities | 17.a | 16,334,142 | 14,239,221 | 16,334,142 | 15,400,664 |
Other Liabilities | 46,636,295 | 33,579,893 | 56,070,817 | 38,833,292 | |
Provision for Tax Risks and Legal Obligations | 19.b | 4,247,766 | 4,216,171 | 6,577,340 | 6,591,441 |
Provision for Judicial and Administrative Proceedings - Labor and Civil Lawsuits | 19.b | 3,118,098 | 3,578,881 | 3,336,597 | 3,884,857 |
Other Provisions | 18 | 742,544 | 811,461 | 835,854 | 896,819 |
Others | 18 | 38,527,887 | 24,973,380 | 45,321,026 | 27,460,175 |
Tax Liabilities | 2,652,184 | 4,433,050 | 3,315,166 | 5,042,170 | |
Current | 10.b | 92,510 | - | 108,058 | - |
Deferred |
| 2,559,674 | 4,433,050 | 3,207,108 | 5,042,170 |
Deferred Income | 393,189 | 313,983 | 423,664 | 355,526 | |
Stockholders' Equity | 20 | 79,061,548 | 79,182,877 | 78,829,560 | 78,968,183 |
Capital | 20.a | 55,000,000 | 57,000,000 | 55,000,000 | 57,000,000 |
Capital Reserves | 20.c | 281,203 | 302,665 | 290,131 | 298,313 |
Profit Reserves | 20.c | 26,696,430 | 23,128,797 | 26,696,430 | 22,511,135 |
Adjustment to Fair Value | (3,025,860) | (457,227) | (2,631,056) | (49,907) | |
Acumulated Profits | 824,614 | - | 188,894 | - | |
(-) Treasury Shares | 20.d | (714,839) | (791,358) | (714,839) | (791,358) |
Non Controlling Interest | 20.e | - | - | 1,344,490 | 1,150,708 |
Total Stockholders' Equity | 79,061,548 | 79,182,877 | 80,174,050 | 80,118,891 | |
Total Liabilities | 977,096,018 | 990,224,751 | 970,041,426 | 1,002,388,978 |
The accompanying notes from Management are an integral part of these financial statements.
Statement of Income
Bank | Consolidated | ||||||||
Notes | 07/01 to 9/30/2020 | 01/01 to 9/30/2021 | 07/01 to 9/30/2019 | 01/01 to 9/30/2020 | 07/01 to 9/30/2020 | 01/01 to 9/30/2021 | 07/01 to 9/30/2019 | 01/01 to 9/30/2020 | |
Income Related to Financial Operations | 37,259,013 | 62,351,792 | 19,386,106 | 93,353,547 | 39,555,929 | 69,809,071 | 21,783,259 | 101,346,732 | |
Loan Operations | 15,016,875 | 35,074,053 | 10,526,199 | 38,535,232 | 17,990,569 | 43,407,641 | 12,980,453 | 47,472,382 | |
Leasing Operations | - | - | - | - | 63,113 | 177,347 | 72,546 | 228,806 | |
Securities Transactions | 6.a.V | 14,879,283 | 17,894,191 | 8,513,306 | 59,087,304 | 14,558,192 | 16,338,589 | 8,105,609 | 57,308,001 |
Derivatives Transactions | 4,717,484 | 7,010,329 | (385,544) | 132,585 | 4,295,232 | 7,506,176 | (116,702) | 594,967 | |
Foreign Exchange Operations | 1,979,290 | 1,014,662 | 456,715 | (5,688,877) | 1,979,843 | 1,015,215 | 464,997 | (5,552,342) | |
Compulsory Deposits | 666,081 | 1,358,557 | 275,430 | 1,287,303 | 668,980 | 1,364,103 | 276,356 | 1,294,918 | |
Expenses on Financial Operations | (30,928,958) | (37,801,703) | (13,122,853) | (90,733,774) | (31,149,000) | (40,047,749) | (14,493,701) | (94,402,806) | |
Funding Operations Market | 16.b | (17,354,832) | (21,563,650) | (6,575,702) | (47,194,837) | (16,855,753) | (21,963,916) | (6,863,436) | (48,057,294) |
Borrowings and Onlendings Operations | (9,572,416) | (6,403,363) | (4,357,124) | (31,685,845) | (9,573,337) | (6,403,507) | (4,364,171) | (31,711,186) | |
Operations of Sale or Transfer of Financial Assets | (348,965) | (245,211) | (127,500) | (1,133,182) | (347,425) | (243,664) | (127,419) | (1,133,050) | |
Allowance for Loan Losses | 8.e | (3,652,745) | (9,589,479) | (2,062,527) | (10,719,910) | (4,372,485) | (11,436,662) | (3,138,675) | (13,501,276) |
Gross Income Related to Financial Operations | 6,330,055 | 24,550,089 | 6,263,253 | 2,619,773 | 8,406,929 | 29,761,322 | 7,289,558 | 6,943,926 | |
Other Operating Revenues (Expenses) | (2,734,089) | (8,315,634) | (2,094,609) | (5,877,046) | (4,012,442) | (11,540,568) | (2,595,842) | (8,716,555) | |
Banking Service Fees | 22 | 2,771,299 | 7,909,951 | 2,436,799 | 6,931,602 | 3,473,975 | 10,334,232 | 3,378,682 | 9,505,816 |
Income Related to Bank Charges | 22 | 1,180,639 | 3,523,078 | 1,179,680 | 3,342,170 | 1,357,160 | 4,048,627 | 1,367,662 | 3,824,873 |
Personnel Expenses | 23 | (1,540,254) | (4,513,812) | (1,574,942) | (4,717,291) | (1,821,009) | (5,306,784) | (1,798,394) | (5,420,020) |
Other Administrative Expenses | 24 | (3,152,185) | (9,867,560) | (2,872,688) | (8,152,541) | (3,226,086) | (10,271,163) | (3,210,003) | (9,343,485) |
Tax Expenses | (630,871) | (2,522,586) | (727,066) | (1,446,072) | (924,191) | (3,360,818) | (995,847) | (2,290,771) | |
Investments in Affiliates and Subsidiaries | 13.b | 835,459 | 2,794,792 | 415,040 | 2,237,263 | 20,739 | 49,305 | 15,393 | 24,941 |
Other Operating Revenues | 25 | 786,927 | 2,290,772 | 1,134,249 | 3,467,480 | 975,230 | 3,633,032 | 1,515,853 | 4,694,826 |
Other Operating Expenses | 26 | (2,985,103) | (7,930,269) | (2,085,681) | (7,539,657) | (3,868,260) | (10,666,999) | (2,869,188) | (9,712,735) |
Operating Income | 3,595,966 | 16,234,455 | 4,168,644 | (3,257,273) | 4,394,487 | 18,220,754 | 4,693,716 | (1,772,629) | |
Non-Operating Income | 27 | 25,469 | 78,053 | 22,098 | 252,928 | 23,182 | 51,259 | 15,872 | 252,455 |
Income Before Taxes on Income and Profit Sharing | 3,621,435 | 16,312,508 | 4,190,742 | (3,004,345) | 4,417,669 | 18,272,013 | 4,709,588 | (1,520,174) | |
Income Tax and Social Contribution | 10.c | 1,063,637 | (3,674,226) | (35,484) | 13,982,731 | 374,855 | (5,552,024) | (412,625) | 12,653,247 |
Provision for Income Tax | 1,680,888 | (954,002) | 398,487 | 24,643 | 1,219,830 | (2,279,795) | (16,567) | (1,143,051) | |
Provision for Social Contribution Tax | 1,347,133 | (833,873) | 300,355 | (26,685) | 1,052,764 | (1,573,441) | 81,910 | (662,310) | |
Deferred Tax Assets | (1,964,384) | (1,886,351) | (734,326) | 13,984,773 | (1,897,739) | (1,698,788) | (477,968) | 14,458,608 | |
Profit Sharing | (460,459) | (1,318,592) | (411,331) | (1,291,581) | (501,171) | (1,441,638) | (457,730) | (1,421,238) | |
Non Controlling Interest | 20.e | - | - | - | - | (19,147) | (87,065) | (28,084) | (101,124) |
Net Income | 4,224,613 | 11,319,690 | 3,743,927 | 9,686,805 | 4,272,206 | 11,191,286 | 3,811,149 | 9,610,711 | |
Number of Shares (Thousands) | 20.a | 7,498,531 | 7,498,531 | 7,498,531 | 7,498,531 |
| |||
$) | 563.39 | 1,509.59 | 499.29 | 1,291.83 |
|
The accompanying notes from Management are an integral part of these financial statements.
Statement of Comprehensive Income
Bank | Consolidated | |||
01/01 to 9/30/2021 | 01/01 to 9/30/2020 | 01/01 to 9/30/2021 | 01/01 to 9/30/2020 | |
Profit for the Period | 11,319,690 | 9,686,805 | 11,191,286 | 9,610,711 |
Other Comprehensive Income that will be subsequently reclassified for profit or loss when specific conditions are met: | (2,673,346) | (1,395,856) | (2,685,862) | (1,408,052) |
Available-for-sale financial assets | (2,771,716) | (1,205,187) | (2,784,232) | (1,217,383) |
Available-for-sale financial assets | (4,389,074) | (2,485,316) | (4,409,662) | (2,497,827) |
Income taxes | 1,617,358 | 1,280,129 | 1,625,430 | 1,280,444 |
Cash flow hedges | 98,370 | (190,669) | 98,370 | (190,669) |
Cash flow hedges | (705,014) | (106,742) | (705,014) | (106,742) |
Income taxes | 803,384 | (83,927) | 803,384 | (83,927) |
Other Comprehensive Income that won't be reclassified for Net income: | 104,713 | 666,091 | 104,713 | 666,091 |
Defined Benefits plan | 104,713 | 666,091 | 104,713 | 666,091 |
Defined Benefits plan | 264,297 | 1,278,431 | 264,297 | 1,278,431 |
Income taxes | (159,584) | (612,340) | (159,584) | (612,340) |
Comprehensive Income for the Period | 8,751,057 | 8,957,040 | 8,610,137 | 8,868,750 |
Attributable to parent company | 8,523,072 | 8,969,874 | ||
Attributable to non-controlling interests | 87,065 | (101,124) | ||
Total | 8,610,137 | 8,868,750 |
The accompanying notes from Management are an integral part of these financial statements.
Statements of Changes in Stockholders' Equity – Bank
Profit Reserves | Adjustment to Fair Value |
| |||||||||||||||||||
Notes | Capital | Capital Reserves | Legal Reserve | Reserve for Dividend Equalization | Own Position | Affiliates and Subsidiaries | Others Adjustment to Fair Value | Retained | (-) Treasury Shares | Total | |||||||||||
Balances as of December 31, 2019 | 57,000,000 | 197,369 | 3,818,064 | 9,091,672 | 3,920,714 | 91,380 | (3,750,341) | - | (681,135) | 69,687,723 | |||||||||||
Employee Benefit Plans | - | - | - | - | - | - | 666,090 | - | - | 666,090 | |||||||||||
Treasury Shares | - | (15,476) | - | - | - | - | - | - | (110,469) | (125,945) | |||||||||||
Reservations for Share - Based Payment |
| - | 19,465 | - | - | - | - | - | - | - | 19,465 | ||||||||||
Adjustment to Fair Value - Securities and Derivative Financial Instruments |
| - | - | - | - | (1,387,736) | (8,172) | - | - | - | (1,395,908) | ||||||||||
Net Income | - | - | - | - | - | - | - | 9,686,805 | - | 9,686,805 | |||||||||||
Allocations: | |||||||||||||||||||||
Legal Reserve | 20.c | - | - | 297,144 | - | - | - | - | (297,144) | - | - | ||||||||||
Dividends | 20.b | - | - | - | - | - | - | - | (1,660,000) | - | (1,660,000) | ||||||||||
Reserve for Dividend Equalization | 20.c | - | - | - | 4,755,734 | - | - | - | (4,755,734) | - | - | ||||||||||
Balances as of September 30, 2020 | 57,000,000 | 201,358 | 4,115,208 | 13,847,406 | 2,532,978 | 83,208 | (3,084,251) | 2,973,927 | (791,604) | 76,878,230 | |||||||||||
Changes in the Period | - | 3,989 | 297,144 | 4,755,734 | (1,387,736) | (8,172) | 666,090 | 2,973,927 | (110,469) | 7,190,507 | |||||||||||
Balances as of December 31, 2020 |
| 57,000,000 | 302,665 | 4,520,871 | 18,607,926 | 2,596,867 | 124,185 | (3,178,279) | - | (791,358) | 79,182,877 | ||||||||||
Employee Benefit Plans | - | - | - | - | - | - | 104,713 | - | - | 104,713 | |||||||||||
Treasury Shares | - | - | - | - | - | - | - | - | 76,520 | 76,519 | |||||||||||
Result of Treasury Shares | 20.d | - | 41,677 | - | - | - | - | - | - | - | 41,677 | ||||||||||
Reservations for Share - Based Payment |
| - | (63,139) | - | - | - | - | - | - | - | (63,139) | ||||||||||
Adjustment to Fair Value - Securities and Derivative Financial Instruments |
| - | - | - | - | (2,134,549) | (538,797) | - | - | - | (2,673,346) | ||||||||||
Spin-off | 20.a | (2,000,000) | - | - | (527,444) | - | - | - | - | - | (2,527,444) | ||||||||||
Net Income | - | - | - | - | - | - | - | 11,319,690 | - | 11,319,690 | |||||||||||
Allocations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal Reserve | 20.c |
| - |
| - |
| 565,985 |
| - |
| - |
| - |
| - |
| (565,985) |
| - |
| - |
Dividends | 20.b |
| - |
| - |
| - |
| (2,800,000) |
| - |
| - |
| - |
| (200,000) |
| - |
| (3,000,000) |
Interest on Capital |
|
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| (3,400,000) |
| - |
| (3,400,000) |
Reserve for Dividend Equalization | 20.c |
| - |
| - |
| - |
| 6,329,092 |
| - |
| - |
| - |
| (6,329,092) |
| - |
| - |
Balances as of September 30, 2021 | 55,000,000 | 281,203 | 5,086,856 | 21,609,574 | 462,318 | (414,612) | (3,073,566) | 824,613 | (714,838) | 79,061,548 | |||||||||||
Changes in the Period | (2,000,000) | (21,462) | 565,985 | 3,001,648 | (2,134,549) | (538,797) | 104,713 | 824,613 | 76,520 | (121,329) |
The accompanying notes from Management are an integral part of these financial statements.
Statements of Changes in Stockholders' Equity – Consolidated
Profit Reserves | Adjustment to Fair Value |
|
|
| |||||||||||||||||||||||||
Notes | Capital | Capital Reserves | Legal Reserve | Reserve for Dividend Equalization | Own | Affiliates and Subsidiaries | Others Adjustment to Fair Value | Retained | (-) Treasury Shares | Stockholders' Equity | Minority | Total Stockholders' Equity | |||||||||||||||||
Balances as of December 31, 2019 | 57,000,000 | 194,115 | 3,818,065 | 9,168,713 | 3,932,436 | 91,380 | (3,750,342) | - | (681,135) | 69,773,232 | 1,695,361 | 71,468,593 | |||||||||||||||||
Employee Benefit Plans | - | - | - | - | - | - | 666,090 | - | - | 666,090 | - | 666,090 | |||||||||||||||||
Treasury Shares | - | (15,476) | - | - | - | - | - | - | (110,469) | (125,945) | - | (125,945) | |||||||||||||||||
Reservations for Share - Based Payment |
| - | 20,009 | - | - | - | - | - | - | - | 20,009 | - | 20,009 | ||||||||||||||||
Adjustment to Fair Value - Securities and Derivative Financial Instruments | - | - | - | - | (1,399,879) | (8,173) | - | - | - | (1,408,052) | - | (1,408,052) | |||||||||||||||||
Net Income | - | - | - | - | - | - | - | 9,610,711 | - | 9,610,711 | - | 9,610,711 | |||||||||||||||||
Allocations: | |||||||||||||||||||||||||||||
Legal Reserve | 20.c | - | - | 297,144 | - | - | - | - | (297,144) | - | - | - | - | ||||||||||||||||
Provision of Interest on Capital | 20.b | - | - | - | - | - | - | - | (1,660,000) | - | (1,660,000) | - | (1,660,000) | ||||||||||||||||
Reserve for Dividend Equalization | 20.c | - | - | - | 4,755,734 | - | - | - | (4,755,734) | - | - | - | - | ||||||||||||||||
Unrealized Profit | - | - | - | 33,101 | - | - | - | (33,101) | - | - | - | - | |||||||||||||||||
Non Controlling Interest Results | 20.e | - | - | - | - | - | - | - | - | - | - | (101,124) | (101,124) | ||||||||||||||||
Others | - | - | - | (110,148) | - | - | - | - | - | (110,148) | (439,760) | (549,908) | |||||||||||||||||
Balances as of September 30, 2020 | 57,000,000 | 198,648 | 4,115,209 | 13,847,400 | 2,532,557 | 83,207 | (3,084,252) | 2,864,732 | (791,604) | 76,765,897 | 1,154,477 | 77,920,374 | |||||||||||||||||
Changes in the Period | - | 4,533 | 297,144 | 4,678,687 | (1,399,879) | (8,173) | 666,090 | 2,864,732 | (110,469) | 6,992,665 | (540,884) | 6,451,781 |
The accompanying notes from Management are an integral part of these financial statements.
Profit Reserves | Adjustment to Fair Value |
|
|
| ||||||||||||||||||||||||
Notes | Capital | Capital Reserves | Legal Reserve | Reserve for Dividend Equalization | Own Position | Affiliates and Subsidiaries | Others Adjustment to Fair Value | Retained Earnings | (-) Treasury Shares | Stockholders' Equity | Minority | Total Stockholders' Equity | ||||||||||||||||
Balances as of December 31, 2020 |
| 57,000,000 | 298,313 | 4,520,872 | 17,990,263 | 3,004,187 | 124,186 | (3,178,280) | - | (791,358) | 78,968,183 | 1,150,708 | 80,118,891 | |||||||||||||||
Employee Benefit Plans | - | - | - | - | - | - | 104,713 | - | - | 104,713 | - | 104,713 | ||||||||||||||||
Treasury Shares | - | 41,677 | - | - | - | - | - | - | 76,519 | 118,196 | - | 118,196 | ||||||||||||||||
Reservations for Share - Based Payment |
| - | (49,859) | - | - | - | - | - | - | - | (49,859) | - | (49,859) | |||||||||||||||
Adjustment to Fair Value - Securities and Derivative Financial Instruments | - | - | - | - | (2,147,065) | (538,797) | - | - | - | (2,685,862) | - | (2,685,862) | ||||||||||||||||
Spin-off | 20.a | (2,000,000) | - | - | (527,444) | - | - | - | - | - | (2,527,444) | - | (2,527,444) | |||||||||||||||
Net Income | - | - | - | - | - | - | - | 11,191,286 | - | 11,191,286 | - | 11,191,286 | ||||||||||||||||
Allocations: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Legal Reserve | 20.c | - | - | 559,564 | - | - | - | - | (559,564) | - | - | - | - | |||||||||||||||
Dividends | 20.b | - | - | - | (2,800,000) | - | - | - | (200,000) | - | (3,000,000) | - | (3,000,000) | |||||||||||||||
Interest on Capital | - | - | - | - | - | - | - | (3,400,000) | - | (3,400,000) | - | (3,400,000) | ||||||||||||||||
Reserve for Dividend Equalization | 20.c | - | - | - | 6,335,584 | - | - | - | (6,335,584) | - | - | - | - | |||||||||||||||
Unrealized Profit | - | - | - | 507,244 | - | - | - | (507,244) | - | - | - | - | ||||||||||||||||
Non Controlling Interest Results | 20.e | - | - | - | - | - | - | - | - | - | - | 87,065 | 87,065 | |||||||||||||||
Others | - | - | - | 110,347 | - | - | - | - | - | 110,347 | 106,717 | 217,064 | ||||||||||||||||
Balances as of September 30, 2021 | 55,000,000 | 290,131 | 5,080,437 | 21,615,994 | 857,122 | (414,611) | (3,073,567) | 188,894 | (714,839) | 78,829,561 | 1,344,490 | 80,174,050 | ||||||||||||||||
Changes in the Period | (2,000,000) | (8,182) | 559,564 | 3,625,731 | (2,147,065) | (538,797) | 104,713 | 188,894 | 76,519 | (138,622) | 193,782 | 55,159 |
The accompanying notes from Management are an integral part of these financial statements.
Statement of Cash Flows
Bank | Consolidated | |||||||
01/01 to 9/30/2021 | 01/01 to 9/30/2020 | 01/01 to 9/30/2021 | 01/01 to 9/30/2020 | |||||
Notes | ||||||||
Operational Activities | ||||||||
Net Income | 11,319,690 | 9,686,805 | 11,191,286 | 9,610,711 | ||||
Adjustment to Net Income | 75,544,160 | (37,970,632) | 80,400,676 | (30,501,454) | ||||
Allowance for Loan Losses | 8.e | 9,589,479 | 10,719,910 | 11,436,662 | 13,501,276 | |||
Provision for Legal Proceedings and Administrative and Legal Obligations | 19.c | 1,032,524 | 983,547 | 1,197,934 | 1,123,110 | |||
Monetary Adjustment of Provision for Legal Proceedings and Administrative and Legal Obligations | 19.c | 389,806 | 248,060 | 433,254 | 286,499 | |||
Deferred Tax Credits and Liabilities | 10 | 2,393,157 | (14,127,896) | 2,279,643 | (13,498,736) | |||
Equity in Affiliates and Subsidiaries | 13 | (2,794,792) | (2,237,263) | (49,305) | (24,941) | |||
Depreciation and Amortization | 24 | 2,956,878 | 1,937,155 | 3,112,500 | 2,285,648 | |||
Recognition (Reversal) Allowance for Other Assets Losses | 27 | 24,496 | (13,027) | 22,161 | (23,742) | |||
Gain (Loss) on Sale of Other Assets | 27 | (61,930) | (45,880) | (57,391) | (35,406) | |||
Gain (Loss) on Sale of Investments | 27 | - | (168,588) | 59 | (168,588) | |||
Provision for Financial Guarantees | 26 | 83,238 | (7,327) | 83,238 | (7,327) | |||
Monetary Adjustment of Escrow Deposits | 25 | (244,390) | (203,662) | (333,061) | (203,662) | |||
Recoverable Taxes | 25 | (155,565) | (112,621) | (169,741) | (133,143) | |||
Effects of Changes in Foreign Exchange Rates on Cash and Cash Equivalents | (4,912) | 2,295 | (4,912) | 2,295 | ||||
Effects of Changes in Foreign Exchange Rates on Assets and Liabilities | 62,320,994 | (33,634,412) | 62,320,994 | (33,634,412) | ||||
Others | 15,177 | (1,310,923) | 128,641 | 61,045 | ||||
Changes on Assets and Liabilities | (81,602,823) | 57,257,695 | (82,596,306) | 63,710,308 | ||||
Decrease (Increase) in Interbank Investments | 16,765,613 | (15,004,827) | 27,040,213 | (12,664,808) | ||||
Decrease (Increase) in Securities and Derivative Financial Instruments | (3,509,452) | (35,460,745) | (5,861,896) | (38,646,586) | ||||
Decrease (Increase) in Lending and Leasing Operations | (38,882,669) | (72,538,909) | (46,130,677) | (60,986,124) | ||||
Decrease (Increase) in Others - Provisions for Expected Losses Associated with Credit Risk | (50,829) | 467,597 | (38,323) | 714,933 | ||||
Decrease (Increase) in Deposits on Central Bank of Brazil | (1,057,460) | 12,961,778 | (1,113,443) | 13,283,959 | ||||
Decrease (Increase) in Other Financial Assets | 31,914,816 | (31,730,069) | 26,494,330 | (32,377,734) | ||||
Decrease (Increase) in Prepaid Expenses | (48,868) | (288,866) | 54,425 | (94,379) | ||||
Decrease (Increase) in Other Assets | (568,804) | 5,442,550 | 10,647,302 | 30,511,237 | ||||
Decrease (Increase) in Current Tax Assets | (1,328,566) | 178,204 | (1,262,228) | 293,945 | ||||
Net Change on Other Interbank and Interbranch Accounts | (3,950,546) | (5,275,360) | 10,956,336 | (6,882,789) | ||||
Increase (Decrease) in Deposits | 7,132,153 | 112,996,858 | 7,775,002 | 111,289,926 | ||||
Increase (Decrease) in Money Market Funding | (26,653,389) | (3,664,730) | (26,013,295) | (4,777,859) | ||||
Increase (Decrease) in Borrowings | 15,173,418 | 11,421,142 | 15,135,473 | 9,236,909 | ||||
Increase (Decrease) in Other Financial Liabilities | (84,400,352) | 45,007,782 | (79,729,959) | 45,935,521 | ||||
Increase (Decrease) in Other Liabilities | 8,034,494 | 33,203,401 | (20,597,644) | 9,005,683 | ||||
Increase (Decrease) in Current Tax Liabilities | 2,317,732 | (543,750) | 4,366,895 | (33,612) | ||||
Increase (Decrease) in Change in Deferred Income | 79,206 | 85,639 | 68,138 | 292,069 | ||||
Income Tax Recovered/(Paid) | (2,569,320) | - | (4,386,955) | (389,983) | ||||
Net Cash Provided by (Used in) Operational Activities | 5,261,027 | 28,973,868 | 8,995,656 | 42,819,565 | ||||
Investing Activities | ||||||||
Increase in Equity at Affiliates and Subsidiaries | 13 | (845,100) | (499,000) | - | - | |||
Purchase Acquisition | - | (1,601,100) | (18,664) | (1,606,000) | ||||
Purchase of Other Investments | (3,487) | (147) | (3,487) | (130) | ||||
Purchase of Fixed Assets | (653,809) | (867,288) | (705,507) | (986,175) | ||||
Purchase and Disposal of Intangible Assets | 643,631 | (2,984,433) | 461,188 | (1,547,010) | ||||
Net Cash Received on Sale/Reduction of Investments | - | - | - | 4 | ||||
Disposal of Interests in Affiliates and Subsidiaries | 876,165 | 3,066,644 | - | 171,213 | ||||
Dividends and Interest on Capital Received | 259,413 | 1,293,445 | 53,503 | (5,165) | ||||
Disposal of Non-Financial Assets Held for Sale | 457,795 | 445,709 | 463,070 | 461,053 | ||||
Disposal of Fixed Assets | 24,813 | 84,269 | 583,432 | 49,059 | ||||
Net Cash Provided by (Used in) Investing Activities | 759,421 | (1,061,901) | 833,535 | (3,463,151) | ||||
Financing Activities | ||||||||
Purchase of Own Share | 18.d | 76,519 | (110,469) | 76,519 | (110,469) | |||
Issuance of Long - Term Emissions | 63,467,511 | 57,025,095 | 61,450,820 | 46,517,680 | ||||
Long - Term Payments | (60,689,297) | (67,167,344) | (61,973,657) | (68,707,700) | ||||
Dividends and Interest on Capital Paid | (6,934,582) | (8,415,750) | (7,011,292) | (8,283,747) | ||||
Increase (decrease) in Minority Interest | 12 | - | - | 29,394 | - | |||
Net Cash Provided by (Used in) Financing Activities | (4,079,849) | (18,668,468) | (7,428,216) | (30,584,236) | ||||
Exchange Variation on Cash and Cash Equivalents | 4,912 | (2,295) | 4,912 | (2,295) | ||||
Increase (Decrease) in Cash and Cash Equivalents | 1,945,511 | 9,241,204 | 2,405,887 | 8,769,883 | ||||
Cash and Cash Equivalents at the Beginning of period | 4 | 29,191,171 | 21,421,432 | 28,999,315 | 21,443,663 | |||
Cash and Cash Equivalents at the End of period | 4 | 31,136,682 | 30,662,636 | 31,405,202 | 30,213,546 |
The accompanying notes from Management are an integral part of these financial statements.
Statement of Value Added
Bank | Consolidated | |||||||||||||||
01/01 to 9/30/2021 | 01/01 to 9/30/2020 | 01/01 to 9/30/2021 | 01/01 to 9/30/2020 | |||||||||||||
Notes | ||||||||||||||||
Income Related to Financial Operations | 62,351,792 | 93,353,547 | 69,809,071 | 101,346,732 | ||||||||||||
Income Related to Bank Charges and Banking Service Fees | 22 | 11,433,029 | 10,273,772 | 14,382,859 | 13,330,689 | |||||||||||
Allowance for Loans Losses | 8.e | (9,589,479) | (10,719,910) | (11,436,662) | (13,501,276) | |||||||||||
Other Revenues and Expenses | (5,561,444) | (3,819,249) | (6,982,708) | (4,765,454) | ||||||||||||
Financial Expenses | (30,046,616) | (80,013,864) | (30,355,848) | (80,901,530) | ||||||||||||
Third-party Input | (6,303,706) | (5,622,615) | (6,546,636) | (6,453,764) | ||||||||||||
Materials, Energy and Others | (197,770) | (183,726) | (211,763) | (195,952) | ||||||||||||
Third-Party Services | 24 | (1,648,184) | (1,367,295) | (1,894,888) | (1,785,083) | |||||||||||
Others | (4,457,752) | (4,071,594) | (4,439,985) | (4,472,729) | ||||||||||||
Gross Added Value | 22,283,576 | 3,451,681 | 28,870,076 | 9,055,397 | ||||||||||||
Retentions | ||||||||||||||||
Depreciation and Amortization | 24 | (2,956,878) | (1,937,155) | (3,112,500) | (2,285,648) | |||||||||||
Added Value Produced Net | 19,326,698 | 1,514,526 | 25,757,576 | 6,769,749 | ||||||||||||
Added Value Received from Transfer Investments in Affiliates and Subsidiaries | 13 | 2,794,792 | 2,237,263 | 49,305 | 24,941 | |||||||||||
Added Value to Distribute | 22,121,490 | 3,751,789 | 25,806,881 | 6,794,690 | ||||||||||||
Added Value Distribution | ||||||||||||||||
Employee | 5,229,739 | 23.6% | 6,008,872 | 160.2% | 6,030,614 | 6,841,258 | 100.7% | |||||||||
Compensation | 21 | 2,576,783 | 2,758,105 | 2,962,816 | 3,112,134 | |||||||||||
Benefits | 21 | 888,194 | 932,903 | 1,073,310 | 1,069,051 | |||||||||||
Government Severance Indemnity Funds for Employees – FGTS | 259,106 | 229,493 | 313,709 | 278,880 | ||||||||||||
Others | 1,505,656 | 2,088,371 | 1,680,779 | 2,381,193 | ||||||||||||
Taxes and Contributions | 4,965,085 | 22.4% | 2,359,638 | 62.9% | 7,885,889 | 4,760,485 | 70.1% | |||||||||
Federal | 4,404,881 | 1,853,588 | 7,185,090 | 4,125,806 | ||||||||||||
State | 493 | 244 | 749 | 358 | ||||||||||||
Municipal | 559,711 | 505,806 | 700,050 | 634,321 | ||||||||||||
Compensation of Third-Party Capital - Rental | 24 | 606,976 | 2.7% | 592,771 | 15.8% | 612,027 | 604,073 | 8.9% | ||||||||
Remuneration of Interest on Capital |
| 11,319,690 | 51.2% | (5,209,492) | (138.9%) | 11,278,351 | (5,411,126) | (79.6%) | ||||||||
Dividends | 23.b | 3,000,000 | - | 3,000,000 | - | |||||||||||
Interest on Equity | 18.b | 3,400,000 | 1,659,975 | 3,400,000 | - | |||||||||||
Profit Reinvestment |
| 4,919,690 | (6,869,467) | 4,965,416 | (5,310,002) | |||||||||||
Participation Results of Non-Controlling Stockholders | 19.e | - | - | (87,065) | (101,124) | |||||||||||
Total | 22,121,490 | 100.0% | 3,751,789 | 100.0% | 25,806,881 | 0.0% | 6,794,690 | 100.0% |
The accompanying notes from Management are an integral part of these financial statements.
1. General Information
Banco Santander (Brasil) SA (Banco Santander or Banco), directly and indirectly controlled by Banco Santander, SA, headquartered in Spain (Banco Santander Spain), is the leading institution of the Financial and Prudential Conglomerates (Santander Conglomerate) before the Bank Central do Brasil (Bacen), incorporated as a joint stock company, headquartered at Avenida Presidente Juscelino Kubitschek, 2041, Cj. 281, Block A, Cond. Wtorre JK - Vila Nova Conceição - São Paulo - SP. Banco Santander operates as a multiple bank and develops its operations through its commercial, investment, credit, financing and investment, real estate credit, leasing and foreign exchange portfolios. Through its subsidiaries, it also operates in the payment institution, consortium administration, securities brokerage, insurance brokerage, consumer finance, digital platforms, benefits management, management and recovery of non-performing loans, capitalization and private pension markets and provision and administration of food, meal and other vouchers. Operations are carried out in the context of a group of institutions that operate in an integrated manner in the financial market. The benefits and costs corresponding to the services provided are absorbed between them and are carried out in the normal course of business and under commutative conditions.
2. Presentation of Financial Statements
The condensed individual and consolidated interim financial statements of Banco Santander, which include its branches abroad (Bank) and the consolidated statements (Consolidated), were prepared in accordance with accounting practices adopted in Brazil, established by the Brazilian Corporate Law, in together with the rules of the National Monetary Council (CMN), of Bacen and the model of the document provided for in the Accounting Plan of Institutions of the National Financial System (COSIF), of the Brazilian Securities Commission (CVM), in which they do not conflict with the rules issued by Bacen and show all relevant information specific to the financial statements, which are consistent with those used by Management in its management.
CMN Resolution No. 4,818/2020 and BCB Resolution No. 2/2020 establish the general criteria and procedures for preparing and disclosing the Financial Statements. BCB Resolution No. 2/2020, revoked Bacen Circular No. 3959/2019, and entered into force as of January 1, 2021, being applicable in the preparation, disclosure and remittance of Financial Statements. Said standard, among other requirements, determined the separate disclosure in an explanatory note of recurring and non-recurring results.
On May 27, 2021, CMN Resolution No. 4,911 was published, which will become effective on January 1, 2022 and propose changes to the documents and disclosures to be made. The Bank is in the process of evaluating and adapting to the Resolution, which determines the extinction of the documents:
· Trial Balance and Balance Sheet - headquarters and dependence (documents 4020 and 4026);
· Analytical Balance Sheet - Consolidated Position of Branches and Equity Interests Abroad (document 4343);
· Balance Sheet and Balance Sheet of the Financial Conglomerate (documents 4040 and 4046);
· Analytical Balance Sheet - Individual Position of Equity Interest Abroad (document 4313) will be simplified;
· Prudential Conglomerate Financial Statements with Explanatory Notes / Auditor's Opinion
The resolution maintains the obligation to publish documents:
· Analytical Balance Sheet – Prudential Conglomerate, monthly (CADOC 4060);
· Balance Sheet – Prudential Conglomerate, semiannually (CADOC 4066), for the base dates of June 30 and December 31; and
· Report of the Prudential Conglomerate, semiannually, for the base dates of June 30th and December 31st (which will still be the object of further details by the regulator).
The individual and Individual and Consolidated Condensed Interim Financial Statements include the Bank and its subsidiaries and the investment funds indicated in Note 13, where the companies of the Santander Conglomerate are the main beneficiaries or holders of the main obligations. The portfolios of these investment funds are classified by type of operation and are distributed in the same categories in which they were originally allocated.
In the preparation of the individual and Individual and Consolidated Condensed Interim Financial Statements, equity interests, relevant balances receivable and payable, revenues and expenses arising from transactions between branches in the country, foreign branches and subsidiaries, unrealized results between these companies and highlighted the participation of minority shareholders in equity and income.
Information on leasing operations was reclassified, in order to reflect its financial position in accordance with the financial method.
The preparation of the financial statements requires the adoption of estimates by Management, impacting certain assets and liabilities, disclosures on provisions and contingent liabilities, and revenues and expenses in the periods shown. Since Management's judgment involves estimates regarding the probability of occurrence of future events, the actual amounts may differ from these estimates, the main ones being provision for expected losses associated with credit risk, realization of deferred tax assets, provision for legal proceedings, civil, tax and labor, pension plan and the fair value of financial assets.
The Board of Directors authorized the issuance of the condensed individual and consolidated interim financial statements for the period ended September 30, 2021, at the meeting held on October 26, 2021.
The Condensed Consolidated Interim Financial Statements prepared based on the international accounting standards issued by the International Accounting Standards Board (IASB) for the period ended September 30, 2021 were simultaneously disclosed on the website www.santander.com.br/ri.
3. Significant Accounting Policies
There were no significant changes in the accounting practices and policies adopted by the Bank for the period ended September 30, 2021. With the exception of the changes mentioned in the following paragraphs, the other accounting practices adopted by the Bank are described in Note 3 of the Individual Financial Statements and Consolidated as of June 30, 2021.
a) Investments
CMN Resolution No. 4,817/2020, which deals with criteria for accounting measurement and recognition of investments in associates, controlled companies and jointly controlled companies, the main change brought about is the extinction of the COSIF "Shares and quotas" of the investment group, passing these to be treated as Bonds and Securities, the resolution becomes effective in January 2022 and Banco Santander continues to assess impacts and necessary changes, with no expectation of material impacts from this change.
b) Rate Conversion
CMN Resolution No. 4,924 published in June 2021, effective from January 2022, consolidates and provides for general principles for recognition, measurement, bookkeeping and accounting disclosure, of the content of the resolution, the main changes brought regarding approval of CPC 47 and the possibility of using an alternative rate to the spot exchange rate for converting transactions and statements in foreign currency into national currency. Banco Santander has already started the impact assessments and changes necessary to meet its implementation and there is no expectation of material impacts.
c) Chart of Accounts (Cosif)
Resolution BCB No. 92/2021, effective from January 2022, provides for the structure of the list of Cosif accounts to be observed by financial institutions and other institutions authorized to operate by the Central Bank of Brazil. Among the proposed changes, the main highlight is the extinction of Group 5 – Income from Future Years, with all its amounts being consequently transferred to the Other Liabilities line.
4. Cash and Cash Equivalents
Bank | ||||||||
9/30/2021 | 12/31/2020 | 9/30/2020 | 12/31/2019 | |||||
Cash | 15,262,858 | 19,522,250 | 15,148,271 | 9,543,649 | ||||
Interbank Investments | 15,873,824 | 9,668,922 | 15,514,365 | 11,877,783 | ||||
Money Market Investments | 12,415,635 | 7,348,568 | 10,315,860 | 110,746 | ||||
Interbank Deposits | 377,433 | 1,131,436 | 1,316,637 | 1,465,065 | ||||
Foreign Currency Investments | 3,080,756 | 1,188,917 | 3,881,868 | 10,301,972 | ||||
Total | 31,136,682 | 29,191,171 | 30,662,636 | 21,421,432 | ||||
Consolidated | ||||||||
9/30/2021 | 12/31/2020 | 9/30/2020 | 12/31/2019 | |||||
Cash | 15,276,568 | 19,512,315 | 15,338,105 | 9,924,644 | ||||
Interbank Investments | 16,128,634 | 9,487,000 | 14,875,441 | 11,519,019 | ||||
Money Market Investments | 12,415,635 | 7,306,408 | 10,315,860 | 110,746 | ||||
Interbank Deposits | 632,243 | 991,675 | 677,713 | 1,105,446 | ||||
Foreign Currency Investments | 3,080,756 | 1,188,917 | 3,881,868 | 10,302,827 | ||||
Total | 31,405,202 | 28,999,315 | 30,213,546 | 21,443,663 |
The information related to September 30, 2020, and December 31, 2019, is shown to inform the composition of the opening balances of Cash and Cash Equivalents presented in the Cash Flow Statements.
5. Interbank Investments
Bank | ||||||||||
9/30/2021 | 12/31/2020 | |||||||||
Up to 3 Months | From 3 to 12 Months | Over 12 Months | Total | Total | ||||||
Money Market Investments | 38,923,938 | 625,832 | - | 39,549,770 | 62,644,146 | |||||
Own Portfolio | 3,072,049 | - | - | 3,072,049 | 12,833,464 | |||||
Financial Treasury Bills - LFT | 152,595 | - | - | 152,595 | 2,869,850 | |||||
National Treasury Bills - LTN | 890,277 | - | - | 890,277 | 2,218,460 | |||||
National Treasury Notes - NTN | 2,029,177 | - | - | 2,029,177 | 7,745,154 | |||||
Third-party Portfolio | 11,660,751 | 516,731 | - | 12,177,482 | 6,203,774 | |||||
Financial Treasury Bills - LFT | 4,623,776 | 516,731 | - | 5,140,508 | - | |||||
National Treasury Bills - LTN | 5,864,706 | - | - | 5,864,706 | - | |||||
National Treasury Notes - NTN | 1,172,269 | - | - | 1,172,269 | 6,203,774 | |||||
Sold Position | 24,191,139 | 109,100 | - | 24,300,239 | 43,606,908 | |||||
Financial Treasury Bills - LFT | 8,850,004 | 109,100 | - | 8,959,105 | 1,498,684 | |||||
National Treasury Bills - LTN | 14,380,457 | - | - | 14,380,457 | 8,469,234 | |||||
National Treasury Notes - NTN | 960,677 | - | - | 960,677 | 33,638,990 | |||||
Interbank Deposits | 13,187,819 | 44,863,863 | 32,661,170 | 90,712,852 | 80,071,025 | |||||
Foreign Currency Investments | 3,080,756 | - | - | 3,080,756 | 1,188,917 | |||||
Total | 55,192,514 | 45,489,694 | 32,661,170 | 133,343,378 | 143,904,088 | |||||
Consolidated | ||||||||||
9/30/2021 | 12/31/2020 | |||||||||
Up to 3 Months | From 3 to 12 Months | Over 12 Months | Total | Total | ||||||
Money Market Investments | 38,923,938 | 646,905 | - | 39,570,844 | 62,601,986 | |||||
Own Portfolio | 3,072,049 | - | - | 3,072,049 | 12,833,464 | |||||
Financial Treasury Bills - LFT | 152,595 | - | - | 152,595 | 2,869,850 | |||||
National Treasury Bills - LTN | 890,277 | - | - | 890,277 | 2,218,460 | |||||
National Treasury Notes - NTN | 2,029,177 | - | - | 2,029,177 | 7,745,154 | |||||
Third-party Portfolio | 11,660,751 | 537,805 | - | 12,198,556 | 6,203,774 | |||||
Financial Treasury Bills - LFT | 4,623,776 | 537,805 | - | 5,161,581 | - | |||||
National Treasury Bills - LTN | 5,864,706 | - | - | 5,864,706 | - | |||||
National Treasury Notes - NTN | 1,172,269 | - | - | 1,172,269 | 6,203,774 | |||||
Sold Position | 24,191,139 | 109,100 | - | 24,300,239 | 43,564,748 | |||||
National Treasury Bills - LTN | 8,850,004 | 109,100 | - | 8,959,105 | 1,456,524 | |||||
National Treasury Notes - NTN | 14,380,457 | - | - | 14,380,457 | 8,469,234 | |||||
Financial Treasury Bills - LFT |
| 960,677 |
| - |
| - |
| 960,677 |
| 33,638,990 |
Interbank Deposits | 1,432,166 | 3,006,656 | 2,209,252 | 6,648,074 | 5,907,350 | |||||
Foreign Currency Investments | 3,080,756 | - | - | 3,080,756 | 1,188,917 | |||||
Total | 43,436,860 | 3,653,561 | 2,209,252 | 49,299,674 | 69,698,253 |
6. Securities and Derivatives Financial Instruments
a) Securities
I) By Category
Bank | Consolidated | |||||||||||||||||||
9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | |||||||||||||||||
Effect of Adjustment to Fair Value on: | Effect of Adjustment to Fair Value on: | |||||||||||||||||||
Amortized Cost | Income | Equity | Carrying Amount | Carrying Amount | Amortized Cost | Income | Equity | Carrying Amount | Carrying Amount | |||||||||||
Trading Securities | 48,982,307 | (644,926) | - | 48,337,381 | 65,380,859 | 59,975,246 | (539,615) | - | 59,435,631 | 75,006,276 | ||||||||||
Government Securities | 48,247,877 | (634,150) | - | 47,613,727 | 64,621,598 | 57,005,563 | (537,120) | - | 56,468,443 | 72,038,263 | ||||||||||
Private Securities | 734,430 | (10,776) | - | 723,654 | 759,261 | 2,969,683 | (2,495) | - | 2,967,188 | 2,968,013 | ||||||||||
Available-for-Sale Securities | 154,403,575 | (1,575,617) | (396,336) | 152,431,622 | 134,119,306 | 162,657,891 | (1,575,617) | (1,034,877) | 160,047,397 | 141,924,157 | ||||||||||
Government Securities | 118,722,055 | (1,601,068) | (1,465,510) | 115,655,477 | 102,157,294 | 127,764,952 | (1,601,068) | (2,108,157) | 124,055,727 | 110,263,140 | ||||||||||
Private Securities | 35,681,520 | 25,451 | 1,069,174 | 36,776,145 | 31,962,012 | 34,892,939 | 25,451 | 1,073,280 | 35,991,670 | 31,661,018 | ||||||||||
Held-to-Maturity Securities | 14,362,323 | - | - | 14,362,323 | 16,317,905 | 14,362,323 | - | - | 14,362,323 | 16,317,905 | ||||||||||
Government Securities | 13,507,463 | - | - | 13,507,463 | 14,739,539 | 13,507,463 | - | - | 13,507,463 | 14,739,539 | ||||||||||
Private Securities | 854,860 | - | - | 854,860 | 1,578,365 | 854,860 | - | - | 854,860 | 1,578,365 | ||||||||||
Total Securities | 217,748,205 | (2,220,543) | (396,336) | 215,131,326 | 215,818,070 | 236,995,460 | (2,115,232) | (1,034,877) | 233,845,351 | 233,248,338 |
II) Trading Securities
Bank | ||||||||||||||||||||
9/30/2021 | 12/31/2020 | By Maturity | 9/30/2021 | |||||||||||||||||
Trading Securities | Amortized Cost | Adjustment to Fair Value - Income | Carrying Amount | Carrying Amount | Without Maturity | Up to 3 Months | From 3 to 12 Months | From 1 to 3 Years | Over 3 Years | Total | ||||||||||
Government Securities | 48,247,877 | (634,150) | 47,613,727 | 64,621,598 | - | 8,003,874 | 7,670,794 | 12,639,063 | 19,299,996 | 47,613,727 | ||||||||||
Financial Treasury Bills - LFT | 2,542,083 | 2,645 | 2,544,728 | 2,208,130 | - | - | 923,865 | 856,533 | 764,330 | 2,544,728 | ||||||||||
National Treasury Bills - LTN | 15,788,067 | (106,070) | 15,681,997 | 23,439,521 | - | 7,887,848 | 2,091,067 | 5,657,656 | 45,426 | 15,681,997 | ||||||||||
National Treasury Notes - NTN | 28,254,552 | (528,938) | 27,725,614 | 38,186,441 | - | 110,468 | 3,021,523 | 6,110,854 | 18,482,769 | 27,725,614 | ||||||||||
Agricultural Debt Securities - TDA | 28,028 | 292 | 28,320 | 44,820 | - | 5,523 | 4,127 | 14,017 | 4,653 | 28,320 | ||||||||||
Brazilian Foreign Debt Notes | 1,632,660 | (2,059) | 1,630,601 | 678,533 | - | - | 1,630,209 | 3 | 389 | 1,630,601 | ||||||||||
Debentures | 2,487 | (20) | 2,467 | 64,153 | - | 35 | 3 | - | 2,429 | 2,467 | ||||||||||
Private Securities | 734,430 | (10,776) | 723,654 | 759,261 | 358,648 | 3,406 | 4,446 | 167,428 | 189,726 | 723,654 | ||||||||||
Shares |
| 329,020 |
| (4,462) |
| 324,558 |
| - |
| 324,558 |
| - |
| - |
| - |
| - |
| 324,558 |
Investment Fund Shares | 34,918 | (828) | 34,090 | 369,041 | 34,090 | - | - | - | - | 34,090 | ||||||||||
Debentures | 292,171 | (2,391) | 289,780 | 273,671 | - | 3,401 | 3,531 | 165,039 | 117,809 | 289,780 | ||||||||||
Certificates of Real Estate Receivables - CRI | 1,463 | (9) | 1,454 | 23,008 | - | 5 | 2 | 1,315 | 132 | 1,454 | ||||||||||
Certificates of Agribusiness Receivables - CRA | 76,858 | (3,086) | 73,772 | 23,866 | - | - | 913 | 1,074 | 71,785 | 73,772 | ||||||||||
Financial Bills - LF | - | - | - | 69,675 | - | - | - | - | - | - | ||||||||||
Total | 48,982,307 | (644,926) | 48,337,381 | 65,380,859 | 358,648 | 8,007,280 | 7,675,240 | 12,806,491 | 19,489,722 | 48,337,381 |
Consolidated | ||||||||||||||||||||
9/30/2021 | 12/31/2020 | By Maturity | 9/30/2021 | |||||||||||||||||
Trading Securities | Amortized Cost | Adjustment to Fair Value - Income | Carrying Amount | Carrying Amount | Without Maturity | Up to 3 Months | From 3 to 12 Months | From 1 to 3 Years | Over 3 Years | Total | ||||||||||
Government Securities | 57,005,563 | (537,120) | 56,468,443 | 72,038,263 | - | 8,003,874 | 11,237,306 | 15,282,619 | 21,944,644 | 56,468,443 | ||||||||||
Financial Treasury Bills - LFT | 9,138,118 | 18,711 | 9,156,829 | 7,316,112 | - | - | 4,490,377 | 3,500,089 | 1,166,363 | 9,156,829 | ||||||||||
National Treasury Bills - LTN | 15,788,067 | (106,070) | 15,681,997 | 23,450,858 | - | 7,887,848 | 2,091,067 | 5,657,656 | 45,426 | 15,681,997 | ||||||||||
National Treasury Notes - NTN | 30,416,204 | (447,975) | 29,968,229 | 40,483,786 | - | 110,468 | 3,021,523 | 6,110,854 | 20,725,384 | 29,968,229 | ||||||||||
Agricultural Debt Securities - TDA | 28,028 | 292 | 28,320 | 44,820 | - | 5,523 | 4,127 | 14,017 | 4,653 | 28,320 | ||||||||||
Brazilian Foreign Debt Bonds | 1,632,660 | (2,059) | 1,630,601 | 678,533 | - | - | 1,630,209 | 3 | 389 | 1,630,601 | ||||||||||
Debentures | 2,486 | (19) | 2,467 | 64,153 | - | 35 | 3 | - | 2,429 | 2,467 | ||||||||||
Private Securities | 2,969,683 | (2,495) | 2,967,188 | 2,968,013 | 1,947,270 | 3,406 | 139,685 | 167,428 | 709,399 | 2,967,188 | ||||||||||
Shares | 1,869,152 | 3,819 | 1,872,971 | 1,339,892 | 1,872,971 | - | - | - | - | 1,872,971 | ||||||||||
Investment Fund Shares | 75,127 | (828) | 74,299 | 401,442 | 74,299 | - | - | - | - | 74,299 | ||||||||||
Debentures | 811,844 | (2,391) | 809,453 | 1,077,513 | - | 3,401 | 3,531 | 165,039 | 637,482 | 809,453 | ||||||||||
Certificates of Real Estate Receivables - CRI | 1,463 | (9) | 1,454 | 23,008 | - | 5 | 2 | 1,315 | 132 | 1,454 | ||||||||||
Certificates of Agribusiness Receivables - CRA | 76,858 | (3,086) | 73,772 | 23,866 | - | - | 913 | 1,074 | 71,785 | 73,772 | ||||||||||
Bill of Exchange | 135,239 | - | 135,239 | 32,618 | - | - | 135,239 | - | - | 135,239 | ||||||||||
Financial Bills - LF | - | - | - | 69,675 | - | - | - | - | - | - | ||||||||||
Total | 59,975,246 | (539,615) | 59,435,631 | 75,006,276 | 1,947,270 | 8,007,280 | 11,376,991 | 15,450,047 | 22,654,043 | 59,435,631 |
*For the purposes of Financial Statements, Securities Held for Trading are fully presented in the Balance Sheet in the short term.
III) Available-for-Sale Securities
Bank | ||||||||||||||||||||||
9/30/2021 | 12/31/2020 | By Maturity | 9/30/2021 | |||||||||||||||||||
Effect of Adjustment to Fair Value on: | ||||||||||||||||||||||
Available-for-Sale Securities | Amortized Cost | Income | Equity | Carrying Amount | Carrying Amount | Without Maturity | Up to 3 Months | From 3 to 12 Months | From 1 to 3 Years | Over 3 Years | Total | |||||||||||
Government Securities | 118,722,055 | (1,601,068) | (1,465,510) | 115,655,477 | 102,157,294 | - | 6,841,882 | 9,483,190 | 41,643,420 | 57,686,985 | 115,655,477 | |||||||||||
Treasury Certificates - CFT | 1,494 | - | 27 | 1,521 | 1,441 | - | 790 | 731 | - | - | 1,521 | |||||||||||
Securitized Credit | 11 | - | (11) | - | 460 | - | - | - | - | - | - | |||||||||||
Financial Treasury Bills - LFT | 37,601,102 | - | (62,484) | 37,538,618 | 20,633,213 | - | - | 275,691 | 8,080,703 | 29,182,224 | 37,538,618 | |||||||||||
National Treasury Bills - LTN | 17,603,497 | (145,193) | (1,018,238) | 16,440,066 | 34,350,939 | - | - | 3,292,226 | 13,147,840 | - | 16,440,066 | |||||||||||
National Treasury Notes - NTN (2) | 39,902,967 | (1,455,875) | (157,471) | 38,289,621 | 45,885,764 | - | 29,913 | 686,659 | 10,152,848 | 27,420,201 | 38,289,621 | |||||||||||
Brazilian Foreign Debt Bonds | 2,281,174 | - | (57) | 2,281,117 | 1,285,477 | - | 1,196,557 | - | - | 1,084,560 | 2,281,117 | |||||||||||
Spanish Foreign Debt Bonds | 18,634,898 | - | (315,483) | 18,319,415 | - | - | 2,829,503 | 5,227,883 | 10,262,029 | - | 18,319,415 | |||||||||||
Mexican Foreign Debt Bonds | 2,696,912 | - | 88,207 | 2,785,119 | - | - | 2,785,119 | - | - | - | 2,785,119 | |||||||||||
Private Securities | 35,681,520 | 25,451 | 1,069,174 | 36,776,145 | 31,962,012 | 1,975,072 | 2,094,095 | 6,661,804 | 9,691,404 | 16,353,770 | 36,776,145 | |||||||||||
Shares | 321 | - | (271) | 50 | 53 | 50 | - | - | - | - | 50 | |||||||||||
Investment Funds | 1,696,306 | - | - | 1,696,306 | 1,894,532 | 1,696,306 | - | - | - | - | 1,696,306 | |||||||||||
Investment Fund Real Estate | 196,205 | - | - | 196,205 | 200,691 | 196,205 | - | - | - | - | 196,205 | |||||||||||
Debentures (1) | 19,121,793 | 25,451 | 821,191 | 19,968,435 | 14,968,154 | - | 332,493 | 2,202,216 | 6,029,998 | 11,403,728 | 19,968,435 | |||||||||||
Promissory Notes - NP | 2,334,473 | - | 8,002 | 2,342,475 | 4,525,164 | - | 657,417 | 597,329 | 956,899 | 130,830 | 2,342,475 | |||||||||||
Financial Bills - LF | 275,309 | - | (4,503) | 270,806 | 270,298 | - | - | 270,806 | - | - | 270,806 | |||||||||||
Certificates of Real Estate Receivables - CRI | 2,887 | - | 10 | 2,897 | 23,625 | - | - | - | - | 2,897 | 2,897 | |||||||||||
Certificates of Agribusiness Receivables - CRA | 161,173 | - | 475 | 161,648 | 171,916 | - | - | - | 35,008 | 126,640 | 161,648 | |||||||||||
Eurobonds | 3,285,793 | - | 105,888 | 3,391,681 | 3,305,028 | - | - | - | - | 3,391,681 | 3,391,681 | |||||||||||
Rural Product Note - CPR | 8,607,260 | - | 138,382 | 8,745,642 | 6,601,651 | 82,511 | 1,104,185 | 3,591,453 | 2,669,499 | 1,297,994 | 8,745,642 | |||||||||||
Total | 154,403,575 | (1,575,617) | (396,336) | 152,431,622 | 134,119,306 | 1,975,072 | 8,935,977 | 16,144,994 | 51,334,824 | 74,040,755 | 152,431,622 |
Consolidated | ||||||||||||||||||||||
9/30/2021 | 12/31/2020 | By Maturity | 9/30/2021 | |||||||||||||||||||
Effect of Adjustment to Fair Value on: | ||||||||||||||||||||||
Available-for-Sale Securities | Amortized Cost | Income | Equity | Carrying Amount | Carrying Amount | Without Maturity | Up to 3 Months | From 3 to 12 Months | From 1 to 3 Years | Over 3 Years | Total | |||||||||||
Government Securities | 127,764,952 |
| (1,601,068) |
| (2,108,157) |
| 124,055,727 |
| 110,263,140 | - | 6,841,882 | 11,863,452 | 44,195,558 | 61,154,835 | 124,055,727 | |||||||
Treasury Certificates - CFT | 1,494 | - | 27 | 1,521 | 1,441 | - | 790 | 731 | - | - | 1,521 | |||||||||||
Securitized Credit | 11 | - | (11) | - | 460 | - | - | - | - | - | - | |||||||||||
Financial Treasury Bills - LFT | 39,618,217 | - | (65,310) | 39,552,907 | 22,684,405 | - | - | 1,585,417 | 8,431,984 | 29,535,506 | 39,552,907 | |||||||||||
National Treasury Bills - LTN | 20,712,648 | (145,193) | (1,113,034) | 19,454,421 | 36,423,327 | - | - | 4,362,822 | 15,091,658 | - | 19,454,421 | |||||||||||
National Treasury Notes - NTN | 43,819,597 | (1,455,875) | (702,495) | 41,661,227 | 49,868,030 | - | 29,913 | 686,659 | 10,409,886 | 30,534,769 | 41,661,227 | |||||||||||
Brazilian Foreign Debt Bonds | 2,281,174 | - | (57) | 2,281,117 | 1,285,477 | - | 1,196,557 | - | - | 1,084,560 | 2,281,117 | |||||||||||
Spanish Foreign Debt Bonds | 18,634,898 | - | (315,483) | 18,319,415 | - | - | 2,829,503 | 5,227,882 | 10,262,030 | - | 18,319,415 | |||||||||||
Mexican Foreign Debt Bonds | 2,696,913 | - | 88,206 | 2,785,119 | - | - | 2,785,119 | - | - | - | 2,785,119 | |||||||||||
Private Securities | 34,892,939 | 25,451 | 1,073,280 | 35,991,670 | 31,661,018 | 1,514,770 | 2,094,095 | 6,614,479 | 9,691,404 | 16,076,922 | 35,991,670 | |||||||||||
Shares | 388 | - | (271) | 117 | 5,400 | 117 | - | - | - | - | 117 | |||||||||||
Investment Fund Shares | 1,398,878 | - | - | 1,398,878 | 1,784,375 | 1,398,878 | - | - | - | - | 1,398,878 | |||||||||||
Investment Fund Real Estate | 34,660 | - | (1,922) | 32,738 | 39,006 | 32,738 | - | - | - | - | 32,738 | |||||||||||
Debentures (1) | 18,791,593 | 25,451 | 827,219 | 19,644,263 | 14,953,673 | - | 332,493 | 2,154,891 | 6,029,998 | 11,126,881 | 19,644,263 | |||||||||||
Eurobonds | 3,285,793 | - | 105,888 | 3,391,681 | 3,285,010 | - | - | - | - | 3,391,681 | 3,391,681 | |||||||||||
Promissory Notes - NP | 2,334,473 | - | 8,002 | 2,342,475 | 4,525,164 | - | 657,417 | 597,329 | 956,899 | 130,830 | 2,342,475 | |||||||||||
Financial Bills - LF | 275,309 | - | (4,503) | 270,806 | 270,298 | - | - | 270,806 | - | - | 270,806 | |||||||||||
Certificates of Real Estate Receivables - CRI | 2,887 | - | 10 | 2,897 | 23,625 | - | - | - | - | 2,897 | 2,897 | |||||||||||
Certificates of Agribusiness Receivables - CRA | 161,173 | - | 475 | 161,648 | 171,916 | - | - | - | 35,008 | 126,640 | 161,648 | |||||||||||
Bank Deposit Certificates - CDB | 526 | - | - | 526 | - | 526 | - | - | - | - | 526 | |||||||||||
Rural Product Note - CPR | 8,607,259 | - | 138,382 | 8,745,641 | 6,601,651 | 82,511 | 1,104,185 | 3,591,453 | 2,669,499 | 1,297,993 | 8,745,641 | |||||||||||
Total | 162,657,891 | (1,575,617) | (1,034,877) | 160,047,397 | 141,924,157 | 1,514,770 | 8,935,977 | 18,477,931 | 53,886,962 | 77,231,757 | 160,047,397 |
(2) On September 30, 2021, the amount of 553,000 in the amount of R$1,217,028 (12/31/2020 - 428,000 in the amount of R$1,002,731) of National Treasury Notes - NTN, are linked to the obligation assumed by the Banco Santander to cover the unamortized reserves of the Pension Plans with the entity BANESPREV.
(3) On September 30, 2021, it includes R$145,193 of National Treasury Bills and R$1,455,875 (12/31/2020 - R$0) of National Treasury Notes - NTN linked to Market Risk hedge structures.
IV) Held-to-Maturity Securities
Bank/Consolidated | ||||||||||||||
By Maturity | 9/30/2021 | |||||||||||||
Amortized Cost | Up to 3 Months | From 3 to 12 Months | From 1 to 3 Years | Over 3 Years | ||||||||||
Held-to-Maturity Securities (1) | 9/30/2021 | 12/31/2020 | Total | |||||||||||
Government Securities | 13,507,463 | 14,739,539 | 25,894 | - | 6,885,037 | 6,596,532 | 13,507,463 | |||||||
National Treasury Notes - NTN | 4,783,220 | 4,549,498 | 25,894 | - | 4,757,326 | - | 4,783,220 | |||||||
Brazilian Foreign Debt Bonds | 8,724,243 | 10,190,042 | - | - | 2,127,711 | 6,596,532 | 8,724,243 | |||||||
Private Securities | 854,860 | 1,578,365 | 50,815 | 804,045 | - | - | 854,860 | |||||||
Certificates of Agribusiness Receivables - CRA | 854,860 | 1,578,365 | 50,815 | 804,045 | - | - | 854,860 | |||||||
Total | 14,362,323 | 16,317,905 | 76,709 | 804,045 | 6,885,037 | 6,596,532 | 14,362,323 |
(1) The market value of held-to-maturity securities is R$14,829,226 (12/31/2020 - R$16,322,840).
For the period ended September 30, 2021, there were no sales of federal government bonds and other securities classified in the held-to-maturity securities category.
Pursuant to the provisions of article 5 of Circular Bacen 3,068/2001, Banco Santander has the financial capacity and intention to hold until maturity the securities classified in the category held-to-maturity securities.
The market value of bonds and securities is calculated considering the average price of organized markets and their estimated cash flow, discounted to present value according to the corresponding applicable interest curves, considered as representative of the market conditions at the time of the calculation of the balances.
V) Financial Income - Securities Transactions
Bank | Consolidated | |||||||
07/01 to | 01/01 to 9/30/2021 | 07/01 to | 01/01 to 9/30/2020 | 07/01 to | 01/01 to 9/30/2021 | 07/01 to | 01/01 to 9/30/2020 | |
Income From Fixed-Income Securities (1) | 13,063,482 | 11,942,317 | 7,297,844 | 57,462,506 | 13,601,140 | 13,010,192 | 7,506,636 | 57,982,641 |
Income From Interbank Investments | 2,472,257 | 6,155,954 | 1,666,598 | 5,466,861 | 1,487,031 | 3,259,240 | 922,805 | 2,905,174 |
Income From Variable-Income Securities | (297) | (32,138) | 697 | (57,272) | 90,340 | 103,011 | 18,125 | (9,256) |
Financial Income of Pension and Capitalization | - | - | - | - | 61,433 | 170,896 | 50,661 | 137,897 |
Provision for Impairment Losses (2) | (284,860) | (34,761) | (34,581) | (194,259) | (280,293) | (30,194) | (34,581) | (194,259) |
Others (3) | (371,299) | (137,181) | (417,252) | (3,590,532) | (401,459) | (174,556) | (358,037) | (3,514,196) |
Total | 14,879,283 | 17,894,191 | 8,513,306 | 59,087,304 | 14,558,192 | 16,338,589 | 8,105,609 | 57,308,001 |
(1) Includes exchange variation expense in the amount of R$8,614,809 in the Bank and in the Consolidated (2020 - revenue of R$40,485,350 in the Bank and in the Consolidated).
(2) Corresponds to the record of permanent loss, referring to securities classified as available for sale.
(3) Includes income from exchange variation and net appreciation of investment fund shares and equity in the amount of R$(174,555) in the Bank and in the Consolidated (2020 - exchange variation expense of R$3,824,080 and net appreciation of fund shares investments and participations in the amount of R$ 342,113 in the Bank and in the Consolidated).
b) Derivatives Financial Instruments
The main risk factors of the derivative instruments assumed are related to exchange rates, interest rates and variable income. In the management of this and other market risk factors, practices are used that include the measurement and monitoring of the use of limits previously defined in internal committees, the value at risk of the portfolios, the sensitivities to interest rate fluctuations, the exposure exchange rate, liquidity gaps, among other practices that allow for the control and monitoring of risks, which may affect Banco Santander's positions in the various markets where it operates. Based on this management model, the Bank has managed, through the use of operations involving derivative instruments, to optimize the risk-benefit ratio even in situations of great volatility.
The fair value of derivative financial instruments is determined through market price quotations. The fair value of swaps is determined using discounted cash flow modeling techniques, reflecting appropriate risk factors. The fair value of forward and futures contracts is also determined based on quoted market prices for derivatives traded on exchanges or using methodologies similar to those described for swaps. The fair value of options is determined based on mathematical models such as Black & Scholes, implied volatilities and the fair value of the corresponding asset. Current market prices are used to price volatilities. For derivatives that do not have prices directly published by exchanges, the fair price is obtained through pricing models that use market information, inferred from published prices of more liquid assets. From these prices, yield curves and market volatilities that serve as input data for the models are extracted.
I) Summary of Derivative Financial Instruments
Swap operations are presented by the balances of the differentials’ receivable and payable.
Below is a breakdown of the Derivative Financial Instruments portfolio (Assets and Liabilities) by type of instrument, shown by their market value:
Bank | Consolidated | |||||||||||||||
9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | |||||||||||||
Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||
Swap - Differential Receivable | 15,592,314 | 16,496,680 | 14,746,581 | 17,925,675 | 12,326,407 | 14,584,244 | 14,729,641 | 18,652,196 | ||||||||
Options to Exercise Awards | 1,086,089 | 2,756,458 | 4,448,585 | 4,511,175 | 1,404,624 | 2,898,309 | 4,979,011 | 4,926,994 | ||||||||
Term Contract and Other Contracts | 13,464,987 | 13,815,537 | 13,085,550 | 12,690,276 | 14,455,284 | 13,815,537 | 13,131,423 | 12,690,275 | ||||||||
Total | 30,143,390 | 33,068,675 | 32,280,716 | 35,127,126 | 28,186,315 | 31,298,091 | 32,840,075 | 36,269,465 |
II) Derivatives Recorded in Memorandum Accounts and Balance Sheets
Interest Rates (DI1 and DIA) | 38,253,568 | - | - | 67,323,206 | - | - | ||||||
Foreign Currency | 10,454,875 | - | - | 18,172,817 | - | - | ||||||
Indexes (3) | 2,932,705 | - | - | 256,260 | - | - | ||||||
Forward Contracts and Others | 137,196,107 | 2,487,009 | (350,550) | 102,561,361 | 894,559 | 395,274 | ||||||
Purchased Commitment | 86,136,898 | 4,872,278 | 13,464,987 | 64,787,891 | 1,303,693 | 13,085,550 | ||||||
Currencies | 74,733,515 | 2,152,839 | 10,147,807 | 57,121,562 | 1,303,693 | 13,077,413 | ||||||
Others | 11,403,383 | 2,719,439 | 3,317,179 | 7,666,329 | - | 8,137 | ||||||
Sell Commitment | 51,059,209 | (2,385,269) | (13,815,537) | 37,773,470 | (409,134) | (12,690,276) | ||||||
Currencies | 44,851,960 | (886,508) | (12,082,088) | 37,294,944 | (408,912) | (12,692,636) | ||||||
Others | 6,207,249 | (1,498,761) | (1,733,450) | 478,526 | (222) | 2,360 |
Consolidated | ||||||||||||
9/30/2021 | 12/31/2020 | |||||||||||
Trading | Notional (1) | Cost | Fair Value | Notional (1) | Cost | Fair Value | ||||||
Swap | 827,659,473 | (1,627,613) | (2,257,026) | 408,037,877 | (2,838,239) | (3,922,555) | ||||||
Assets | 413,022,224 | 8,984,788 | 12,326,407 | 283,308,405 | 6,511,030 | 14,729,641 | ||||||
CDI (Interbank Deposit Rates) | 92,158,466 | 478,987 | 2,714,699 | 45,872,335 | 326,585 | 2,686,294 | ||||||
Fixed Interest Rate - Real | 114,180,157 | 6,087,374 | 5,879,871 | 54,159,847 | 4,013,562 | 9,607,343 | ||||||
Indexed to Price and Interest Rates | 38,902,714 | 650,495 | 859,190 | 5,124,411 | 959,322 | 1,093,119 | ||||||
Foreign Currency | 145,727,410 | 1,766,280 | 2,712,388 | 178,076,136 | 950,048 | 1,039,528 | ||||||
Others | 22,053,478 | 1,652 | 160,259 | 75,676 | 261,513 | 303,357 | ||||||
Liabilities | 414,637,249 | (10,612,401) | (14,583,432) | 124,729,472 | (9,349,269) | (18,652,196) | ||||||
CDI (Interbank Deposit Rates) | 2,128,405 | (7,717,062) | (29,530) | 33,239,800 | (6,911,747) | (14,018,319) | ||||||
Fixed Interest Rate - Real | 180,299,223 | (2,718,855) | (5,574,468) | 49,644,709 | (2,183,507) | (2,772,479) | ||||||
Indexed to Price and Interest Rates | 23,289,965 | (12,165) | (2,576,837) | 33,026,691 | (25) | (450,958) | ||||||
Foreign Currency | 186,866,261 | (162,750) | (6,242,340) | 6,636,884 | (231,185) | 153,695 | ||||||
Others | 22,053,395 | (1,569) | (160,259) | 2,181,388 | (22,805) | (1,564,135) | ||||||
Options | 991,699,730 | (1,997,900) | (1,493,685) | 2,043,286,079 | (282,108) | 52,017 | ||||||
Purchased Position | 164,637,332 | 1,021,646 | 1,404,624 | 1,006,266,895 | 1,869,805 | 4,979,011 | ||||||
Call Option - Foreign Currency | 8,720,687 | 438,939 | 496,484 | 1,188,387 | 47,898 | 39,201 | ||||||
Put Option - Foreign Currency | 6,218,338 | 204,527 | 98,011 | 1,948,673 | 79,019 | 109,077 | ||||||
Call Option - Other | 34,177,576 | 292,080 | 731,612 | 134,761,946 | 558,794 | 1,093,583 | ||||||
Interbank Market | 31,277,764 | 240,276 | 675,504 | 101,421,659 | 557,167 | 556,039 | ||||||
Others (2) | 2,899,812 | 51,805 | 56,108 | 33,340,287 | 1,627 | 537,544 | ||||||
Put Option - Other | 115,520,732 | 86,100 | 78,517 | 868,367,889 | 1,184,094 | 3,737,150 | ||||||
Interbank Market | 114,251,434 | 58,384 | 48,044 | 864,852,555 | 1,183,630 | 3,733,690 | ||||||
Others (2) | 1,269,297 | 27,716 | 30,472 | 3,515,334 | 464 | 3,460 | ||||||
Sold Position | 827,062,398 | (3,019,547) | (2,898,309) | 1,037,019,184 | (2,151,913) | (4,926,994) | ||||||
Call Option - Foreign Currency | 11,790,862 | (1,500,229) | (1,595,599) | 1,537,669 | (70,201) | 699,241 | ||||||
Put Option - Foreign Currency | 7,959,074 | (366,247) | (156,607) | 2,315,918 | (137,061) | (192,334) | ||||||
Call Option - Other | 357,905,201 | (868,845) | (999,445) | 130,919,392 | (588,022) | (453,918) | ||||||
Interbank Market | 349,882,423 | (254,155) | (514,273) | 120,156,284 | (566,812) | (464,404) | ||||||
Others (2) | 8,022,777 | (614,690) | (485,172) | 10,763,108 | (21,210) | 10,486 | ||||||
Put Option - Other | 449,407,261 | (284,226) | (146,658) | 902,246,205 | (1,356,629) | (4,979,983) |
Interbank Market | 446,190,175 | (177,755) | (53,236) | 869,328,317 | (1,350,314) | (4,597,426) | ||||||
Others (2) | 3,217,087 | (106,472) | (93,422) | 32,917,888 | (6,315) | (382,557) | ||||||
Futures Contracts | 203,736,949 | - | - | 270,258,562 | - | - | ||||||
Purchased Position | 137,813,807 | - | - | 110,275,865 | - | - | ||||||
Exchange Coupon (DDI) | 44,861,537 | - | - | 12,438,695 | - | - | ||||||
Interest Rates (DI1 and DIA) | 40,066,137 | - | - | 97,837,170 | - | - | ||||||
Foreign Currency | 42,826,979 | - | - | - | - | - | ||||||
Indexes (3) | 10,059,155 | - | - | - | - | - | ||||||
Sold Position | 65,923,142 | - | - | 159,982,697 | - | - | ||||||
Exchange Coupon (DDI) | 14,281,994 | - | - | 73,114,013 | - | - | ||||||
Interest Rates (DI1 and DIA) | 38,253,568 | - | - | 67,958,767 | - | - | ||||||
Foreign Currency | 10,454,875 | - | - | 18,653,657 | - | - | ||||||
Indexes (3) | 2,932,705 | - | - | 256,260 | - | - | ||||||
Forward Contracts and Others | 137,196,107 | 2,487,009 | 639,747 | 107,761,737 | 2,693,758 | 441,148 | ||||||
Purchased Commitment | 86,136,898 | 4,872,278 | 14,455,284 | 67,378,024 | 1,370,653 | 13,131,423 | ||||||
Currencies | 74,733,515 | 2,152,839 | 11,138,105 | 59,711,695 | 1,370,653 | 13,077,412 | ||||||
Others | 11,403,383 | 2,719,439 | 3,317,179 | 7,666,329 | - | 54,011 | ||||||
Sell Commitment | 51,059,209 | (2,385,269) | (13,815,537) | 40,383,713 | 1,323,105 | (12,690,275) | ||||||
Currencies | 44,851,960 | (886,508) | (12,082,088) | 39,905,187 | 1,323,327 | (12,692,635) | ||||||
Others | 6,207,249 | (1,498,761) | (1,733,450) | 478,526 | (222) | 2,360 |
(1) Nominal value of the updated contracts.
(2) Includes options of indexes, mainly being options involving US treasury, shares and stock indexes.
(3) Includes Bovespa and S&P indexes.
III) Derivative Financial Instruments by Counterparty, Opening by Maturity and Trading Market
Bank | |||||||||||||||||
Notional | |||||||||||||||||
By Counterparty | By Maturity | ||||||||||||||||
9/30/2021 | 12/31/2020 | 9/30/2021 | |||||||||||||||
Related | Financial | Up to | From 3 to | Over | |||||||||||||
Customers | Parties | Institutions (1) | Total | Total | 3 Months | 12 Months | 12 Months | ||||||||||
Swap | 268,970,379 | 119,394,751 | 19,988,723 | 408,353,854 | 317,619,156 | 39,535,850 | 89,320,973 | 279,497,032 | |||||||||
Options | 990,695,781 | 1,003,949 | - | 991,699,730 | 1,963,194,665 | 164,985,674 | 794,391,864 | 32,322,192 | |||||||||
Futures Contracts | 202,796,431 | 940,519 | - | 203,736,949 | 268,807,002 | 79,046,951 | 35,137,251 | 89,552,747 | |||||||||
Forward Contracts and Others | 65,304,315 | 71,137,300 | 754,491 | 137,196,107 | 102,561,361 | 50,284,159 | 47,582,880 | 39,329,068 | |||||||||
Consolidated | |||||||||||||||||
Notional | |||||||||||||||||
By Counterparty | By Maturity | ||||||||||||||||
9/30/2021 | 12/31/2020 | 9/30/2021 | |||||||||||||||
Related | Financial | Up to | From 3 to | Over | |||||||||||||
Customers | Parties | Institutions (1) | Total | Total | 3 Months | 12 Months | 12 Months | ||||||||||
Swap | 268,970,379 | 119,394,751 | 24,657,093 | 413,022,224 | 283,308,405 | 39,535,850 | 93,989,343 | 279,497,032 | |||||||||
Options | 990,695,781 | 1,003,949 | - | 991,699,730 | 2,043,286,079 | 164,985,674 | 794,391,864 | 32,322,192 |
Futures Contracts | 202,796,431 | 940,519 | - | 203,736,949 | 270,258,562 | 79,046,951 | 35,137,251 | 89,552,747 | |||||||||
Forward Contracts and Others | 65,304,315 | 71,137,300 | 754,491 | 137,196,107 | 107,761,737 | 50,284,159 | 47,582,880 | 39,329,068 |
(1) Includes operations whose counterparty is B3 S.A. - Brazil, Bolsa, Balcão (B3) and other stock and commodity exchanges.
IV) Hedge Accounting
The effectiveness determined for the hedge portfolio is in accordance with Bacen Circular 3,082/2002 and the following hedge accounting structures were established:
IV.I) Market Risk Hedge
The Bank's market risk hedging strategies consist of protection structures against changes in market risk, receipts and payments of interest related to recognized assets and liabilities.
The market risk hedge management methodology adopted by the Bank segregates transactions by risk factor (e.g.: Real/Dollar exchange risk, risk of pre-fixed interest rate in reais, risk of dollar exchange coupon, risk of inflation, interest risk, etc.). Transactions generate exposures that are consolidated by risk factor and compared to pre-established internal limits.
In order to protect the market risk variation in the receipt and payment of interest, the Bank uses interest rate swaps and futures contracts related to fixed-rate assets and liabilities.
The Bank applies the market risk hedge as follows:
· Designates Foreign Currency swaps + Coupon versus % CDI and Pre-Real Interest Rate or US Dollar futures (DOL, DDI/DI) as a derivative instrument in Hedge Accounting structures, with foreign currency loan operations as the object.
· The Bank has a portfolio of assets indexed to the Euro and traded at the Offshore agency. In the transaction, the value of the asset in Euro will be converted to Dollar at the exchange contract rate for entering the transaction. After the conversion, the principal amount of the operation, already expressed in dollars, will be adjusted by a floating or pre-fixed rate. The assets will be hedged with Swap Cross Currency, in order to transfer the risk in Euro to LIBOR + Coupon.
· The Bank has pre-fixed interest rate risk generated by government bonds (NTN-F and LTN) in the portfolio of Financial Assets available for sale. To manage this mismatch, the entity contracts DI futures on the Exchange and designates them as a hedging instrument in a hedge accounting framework.
· The Bank has risk to the IPCA index generated by debentures in the portfolio of securities available for sale. To manage this mismatch, the Bank contracts IPCA futures (DAP) on the Exchange and designates them as a protection instrument in a Hedge Accounting structure.
· Santander Leasing has pre-fixed interest rate risk generated by government bonds (NTN-F) in the portfolio of securities available for sale. To manage this mismatch, the entity enters into interest rate swaps and designates them as a hedging instrument in a hedge accounting framework.
· The Bank has a pre-fixed interest rate risk on its liabilities through issues of real estate letters of credit (LCI). To manage this mismatch, the entity contracts DI futures on the Exchange and designates them as a hedging instrument in a hedge accounting framework.
· The Bank has a risk related to the IPCA index generated by the issuance of a Guaranteed Real Estate Bill. To manage this mismatch, the Bank contracts IPCA futures (DAP) on the Exchange and designates them as a protection instrument in a Hedge Accounting structure.
In market risk hedge, the results, both on hedging instruments and on the objects (attributable to the type of risk being hedged) are recognized directly in the income statement.
IV.II) Cash Flow Hedge
The Bank's cash flow hedge strategies consist of hedging exposure to variations in cash flows, interest payments and exchange rate exposure, which are attributable to changes in interest rates relating to recognized assets and liabilities and changes exchange rates of unrecognized assets and liabilities.
The Bank applies cash flow hedge as follows:
• Contracts fixed dollar-indexed asset swaps and liabilities in foreign currency and designates them as a hedging instrument in a Cash Flow Hedge structure, having as object foreign currency loan transactions negotiated with third parties through offshore agencies and securities of the Brazilian external debt held to maturity.
• Contracts Dollar futures or DDI + DI Futures (Synthetic Dollar Futures) and designates them as a hedging instrument in a Cash Flow Hedge structure, having as object the Bank's credit portfolio in Dollars and Promissory Notes in portfolio of securities available for sale.
• Banco RCI Brasil SA has hedge operations whose purpose is funding operations with financial bills (LF), bills of exchange (LC) and Interbank Deposit Certificates (CDI) indexed to CDI and uses interest rate swaps to make the pre-fixed funding and predicting future cash flows.
In cash flow hedge, the effective portion of the variation in the value of the hedging instrument is temporarily recognized in equity under equity valuation adjustments until the forecast transactions occur, at which time this portion is recognized in the income statement. The ineffective portion of the variation in the value of foreign exchange hedge derivatives is recognized directly in the income statement. On September 30, 2021 and December 31, 2020, no results referring to the ineffective portion were recorded.
Bank | ||||||||||||||||||
9/30/2021 | 12/31/2020 | |||||||||||||||||
Strategies | Accounting Value | Notional | Accounting Value | Notional | ||||||||||||||
Market Risk Hedge | Objects (1) | Instruments (1) | Objects (1) | Instruments (1) | Objects (1) | Instruments (1) | Objects (1) | Instruments (1) | ||||||||||
Swap Contracts | 158,720 | 136,486 | 1,013,146 | 742,279 | - | - | - | - | ||||||||||
Credit Operations Hedge | 158,720 | 136,486 | 1,013,146 | 742,279 | - | - | - | - | ||||||||||
Futures Contracts | 80,902,005 | 67,604,264 | 69,905,987 | 76,626,196 | 45,331,727 | 46,649,331 | 46,178,734 | 30,985,609 | ||||||||||
Securities Hedge | 80,902,005 | 67,604,264 | 69,905,987 | 76,626,196 | 45,331,727 | 46,649,331 | 46,178,734 | 30,985,609 | ||||||||||
Cash Flow Hedge | ||||||||||||||||||
Swap Contracts | 6,786,840 | 6,622,857 | 5,316,632 | 4,502,378 | ||||||||||||||
Securities Hedge | - | - | - | - | 1,302,666 | 1,428,053 | 1,302,666 | 1,428,053 | ||||||||||
Funding Hedge | - | - | - | - | 5,484,174 | 5,194,804 | 4,013,966 | 3,074,325 | ||||||||||
Futures Contracts | 39,152,251 | 36,988,688 | 42,031,834 | 40,603,943 | 23,447,934 | 19,500,234 | 23,447,934 | 19,333,230 | ||||||||||
Credit Operations Hedge | 33,136,417 | 30,009,738 | 35,787,330 | 35,330,791 | 23,447,934 | 19,500,234 | 23,447,934 | 19,333,230 | ||||||||||
Securities Hedge | 6,015,834 | 6,978,950 | 6,244,504 | 5,273,152 | - | - | - | - |
Consolidated | ||||||||||||||||||
9/30/2021 | 12/31/2020 | |||||||||||||||||
Strategies | Accounting Value | Notional | Accounting Value | Notional | ||||||||||||||
Market Risk Hedge | Objects (1) | Instruments (1) | Objects (1) | Instruments (1) | Objects (1) | Instruments (1) | Objects (1) | Instruments (1) | ||||||||||
Swap Contracts | 158,720 | 136,486 | 1,013,146 | 742,279 | - | - | - | - | ||||||||||
Credit Operations Hedge | 158,720 | 136,486 | 1,013,146 | 742,279 | - | - | - | - | ||||||||||
Futures Contracts | 80,902,005 | 67,604,264 | 69,905,987 | 76,626,196 | 45,331,727 | 46,649,331 | 46,178,734 | 30,985,609 | ||||||||||
Securities Hedge | 80,902,005 | 67,604,264 | 69,905,987 | 76,626,196 | 45,331,727 | 46,649,331 | 46,178,734 | 30,985,609 | ||||||||||
Cash Flow Hedge | ||||||||||||||||||
Swap Contracts | 4,437,194 | 5,409,997 | 3,846,202 | 4,142,270 | 6,786,840 | 6,622,857 | 5,316,632 | 4,502,378 | ||||||||||
Securities Hedge | - | - | - | - | 1,302,666 | 1,428,053 | 1,302,666 | 1,428,053 | ||||||||||
Funding Hedge | 4,437,194 | 5,409,997 | 3,846,202 | 4,142,270 | 5,484,174 | 5,194,804 | 4,013,966 | 3,074,325 | ||||||||||
Futures Contracts | 39,152,251 | 36,988,688 | 42,031,834 | 40,603,943 | 23,447,934 | 19,500,234 | 23,447,934 | 19,333,230 | ||||||||||
Credit Operations Hedge | 33,136,417 | 30,009,738 | 35,787,330 | 35,330,791 | 23,447,934 | 19,500,234 | 23,447,934 | 19,333,230 |
Securities Hedge | 6,015,834 | 6,978,950 | 6,244,504 | 5,273,152 | - | - | - | - |
(*) The Bank has cash flow hedge strategies, whose objects are assets in its portfolio, which is why we demonstrate the liability position of the respective instruments. For structures whose instruments are futures, we show the notional balance, recorded in a memorandum account.
(1) Creditor amounts refer to asset transactions and debtor transactions to liability transactions.
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| Bank |
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| Consolidated |
|
|
|
|
|
|
|
| 9/30/2021 |
| 12/31/2020 |
|
|
|
|
|
| 9/30/2021 |
| 12/31/2020 | |
Up to | From 3 to | Over | Up to | From 3 to | Over | |||||||||||||||
Strategies |
| 3 Months |
| 12 Months |
| 12 Months |
| Total |
| Total |
| 3 Months |
| 12 Months |
| 12 Months |
| Total |
| Total |
Market Risk Hedge | ||||||||||||||||||||
Swap Contracts |
| - |
| 103,878 |
| 53,436 |
| 157,314 |
| - | - |
| 103,878 |
| 53,436 |
| 157,314 |
| - | |
Credit Operations Hedge |
| - |
| 103,878 |
| 53,436 |
| 157,314 |
| - | - |
| 103,878 |
| 53,436 |
| 157,314 |
| - | |
Futures Contracts |
| - |
| 32,986,977 |
| 41,220,300 |
| 74,207,276 |
| 30,985,609 | - |
| 32,986,977 |
| 41,220,300 |
| 74,207,276 |
| 30,985,609 | |
Securities Hedge |
| - |
| - |
| - |
| - |
| 30,985,609 | - |
| - |
| - |
| - |
| 30,985,609 | |
Funding Hedge |
| - |
| 32,986,977 |
| 41,220,300 |
| 74,207,276 |
| - |
| - |
| 32,986,977 |
| 41,220,300 |
| 74,207,276 |
| - |
Cash Flow Hedge | ||||||||||||||||||||
Swap Contracts |
| - |
| - |
| - |
| - |
| 1,428,053 | 1,194,003 |
| 1,940,391 |
| 2,275,603 |
| 5,409,997 |
| 4,502,378 | |
Securities Hedge |
| - |
| - |
| - |
| - |
| 1,428,053 | - |
| - |
| - |
| - |
| 1,428,053 | |
Funding Hedge |
| - |
| - |
| - |
| - |
| - | 1,194,003 |
| 1,940,391 |
| 2,275,603 |
| 5,409,997 |
| 3,074,325 | |
Futures Contracts |
| 23,237,589 |
| - |
| 6,978,950 |
| 30,216,539 |
| 19,333,230 | 23,237,589 |
| - |
| 6,978,950 |
| 30,216,539 |
| 19,333,230 | |
Credit Operations Hedge |
| 23,237,589 |
| - |
| - |
| 23,237,589 |
| 19,333,230 | 23,237,589 |
| - |
| - |
| 23,237,589 |
| 19,333,230 | |
Securities Hedge |
| - |
| - |
| 6,978,950 |
| 6,978,950 |
| - | - |
| - |
| 6,978,950 |
| 6,978,950 |
| - |
In the Bank and in the Consolidated, the mark-to-market effect of the active swap and futures contracts corresponds to a credit in the amount of R$221,674 (12/31/2020 - R$11,528) and is recorded in shareholders' equity, net of tax effects, of which R$145,603 will be realized against revenue in the next twelve months.
V) Information on Credit Derivatives
Banco Santander uses credit derivatives for the purposes of managing counterparty risk and meeting the demands of its customers, carrying out operations of purchase and sale of protection through credit default swaps and total return swaps, primarily related to securities with Brazilian sovereign risk.
Total Return Swaps - TRS
They are credit derivatives where the return of the reference obligation is exchanged for a cash flow and in which, in the event of a credit event, the protection buyer usually has the right to receive from the protection seller the equivalent to the difference between the updated value and the fair value (market value) of the reference obligation on the contract settlement date.
Credit Default Swaps - CDS
They are credit derivatives where, in the event of a credit event, the protection buyer is entitled to receive from the protection seller the equivalent to the difference between the face value of the CDS contract and the fair value (market value) of the reference obligation on the settlement date of the contract. In return, the seller receives a fee for the sale of the protection.
Below, the composition of the Credit Derivatives portfolio shown by its reference value and effect on the calculation of Required Shareholders' Equity (PLE).
Bank/Consolidated | ||||||||
Nominal Value | ||||||||
9/30/2021 | 12/31/2020 | |||||||
Retained Risk - Total Rate of Return Swap | Transferred Risk - Credit Swap | Retained Risk - Total Rate of Return Swap | Transferred Risk - Credit Swap | |||||
Credit Swaps | 3,391,681 | - | - | 519,670 | ||||
Total | 3,391,681 | - | - | 519,670 |
Amount referring to the premium paid on CDS for use as collateral (risk transfer) in the amount of R$0 (12/31/2020 – R$1,506).
During the period, we did not have credit swap transactions or occurrence of credit event related to triggering events provided for in the contracts.
9/30/2021 | 12/31/2020 | |||||||
Maximum Potential for Future Payments - Gross | Over 12 Months | Total | Over 12 Months | Total | ||||
Per Instrument: CDS | 3,883,649 | 3,883,649 | 4,003,298 | 4,003,298 | ||||
Per Risk Classification: Below Investment Grade | 3,883,649 | 3,883,649 | 4,003,298 | 4,003,298 | ||||
Per Reference Entity: Brazilian Government | 3,883,649 | 3,883,649 | 4,003,298 | 4,003,298 |
VI) Derivative Financial Instruments - Margin Given in Guarantee
The margin given as collateral for transactions traded on B3 with its own and third party derivative financial instruments is composed of federal government securities.
Bank | Consolidated | |||||||
9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | |||||
Financial Literature of the Treasury - LFT | 3,336,299 | 3,702,213 | 3,788,250 | 4,363,665 | ||||
National Treasury Bills - LTN | 6,165,419 | 6,155,275 | 6,325,723 | 6,155,275 | ||||
| 4,244,077 | 2,814,273 | 6,544,865 | 2,814,273 | ||||
Total | 13,745,794 | 12,671,761 | 16,658,838 | 13,333,213 |
7. Interbank Accounts
The balance of the interbank relationship item is composed of restricted credits represented mainly by deposits made at Bacen to fulfill the requirements of compulsory on demand deposits, savings deposits and time deposits and by payments and receipts to be settled, represented by checks and other papers sent to the clearing service and payment transactions (active and passive position).
8. Credit Portfolio and Allowance for Expected Losses Associated with Credit Risk
a) Loan Portfolio
Bank | Consolidated | |||||||
9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | |||||
Lending Operations | 311,762,367 | 279,580,267 | 375,968,143 | 338,110,717 | ||||
Loans and Discounted Titles | 204,993,921 | 179,058,116 | 206,975,795 | 179,172,031 | ||||
Financing | 39,450,048 | 41,034,126 | 101,673,950 | 99,450,661 | ||||
Rural and Agroindustrial - Financing | 13,820,158 | 13,659,898 | 13,820,158 | 13,659,898 | ||||
Real Estate Financing | 53,498,240 | 45,828,127 | 53,498,240 | 45,828,127 | ||||
Leasing Operations | - | - | 2,567,245 | 2,471,384 | ||||
Advances on Foreign Exchange Contracts (1) | 6,626,964 | 6,310,254 | 6,626,964 | 6,310,254 | ||||
Other Receivables (2) | 61,782,891 | 61,569,706 | 65,016,430 | 64,758,539 | ||||
Credits for Avals and Sureties Honored | 164,024 | 228,754 | 542,844 | 228,754 | ||||
Income Receivable from Advances Granted - Foreign Exchange Portfolio | 131,349 | 150,513 | 131,349 | 150,513 | ||||
Other Receivables – Other | 61,487,518 | 61,190,439 | 64,342,237 | 64,379,272 | ||||
Total | 380,172,222 | 347,460,227 | 450,178,782 | 411,650,894 |
(1) Advances on foreign exchange contracts are classified as a reduction of other obligations.
(2) Debtors for purchase of securities and assets and securities and credits receivable (Note 11).
Sale or Transfer of Financial Assets
Pursuant to CMN Resolution No. 3,533/2008 and subsequent amendments, credit assignment operations with substantial retention of risks and benefits, from January 1, 2012 on, began to remain recorded in the credit portfolio. For credit assignment operations carried out until December 31, 2011, regardless of the retention or substantial transfer of risks and benefits, the financial assets were derecognized from the registration of the original operation and the result determined in the assignment was appropriated to the result for the period.
(i) With Substantial Transfer of Risks and Benefits
In the Bank and in the Consolidated, during the period ended September 30, 2021, credit assignment operations without recourse were carried out in the amount of R$7,553,594,240 (12/31/2020 - R$1,338,253), of which R$26,250 in Active Portfolio, generating a result of R$5,233 (12/31/2020 - R$12,233), and R$444,599 in Loss Portfolio. These amounts were transacted with companies not belonging to the Group.
(ii) With Substantial Retention of Risks and Benefits
In December 2011, the Bank assigned credits with co-obligation related to real estate financing in the amount of R$688,821, maturing in October 2041. On September 30, 2021, the present value of the assigned operations is R$44,292 (12/31/2020- R$55,284).
These assignment operations were carried out with a co-obligation clause, with mandatory repurchase in the following situations:
- Non-performing contracts for a period exceeding 90 consecutive days;
- Contracts subject to renegotiation;
- Contracts subject to portability, pursuant to CMN Resolution No. 3401/2006; and
- Contracts subject to intervention.
The compulsory repurchase amount will be calculated by the debit balance of the credit duly updated on the respective repurchase date.
From the date of assignment, the cash flows from the assigned operations will be paid directly to the assignee.
b) Loan Portfolio by Maturity
Bank | Consolidated | |||||||
9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | |||||
Overdue | 7,288,127 | 5,015,638 | 8,348,603 | 5,842,250 | ||||
Due to: | ||||||||
Up to 3 Months | 107,013,243 | 101,913,270 | 116,300,036 | 111,058,613 | ||||
From 3 to 12 Months | 90,629,581 | 80,400,014 | 113,709,015 | 100,998,401 | ||||
Over 12 Months | 175,241,271 | 160,131,305 | 211,821,128 | 193,751,630 | ||||
Total | 380,172,222 | 347,460,227 | 450,178,782 | 411,650,894 |
c) Loan Portfolio by Business Sector
Bank | Consolidated | |||||||
9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | |||||
Private Sector | 379,131,957 | 346,441,422 | 449,137,539 | 410,630,891 | ||||
Industry | 67,052,255 | 65,984,136 | 68,485,807 | 67,264,749 | ||||
Commercial | 45,947,091 | 43,967,769 | 50,069,531 | 47,902,610 | ||||
Financial Institutions | 974,532 | 2,140,177 | 851,565 | 2,157,962 | ||||
Services and Others (1) | 64,092,609 | 58,085,560 | 70,054,978 | 60,971,259 | ||||
Individuals | 196,308,337 | 172,102,567 | 254,832,065 | 228,089,977 | ||||
Credit Cards | 40,210,028 | 37,427,267 | 40,210,028 | 37,427,267 | ||||
Mortgage Loans | 51,583,967 | 43,993,132 | 51,583,967 | 43,993,132 | ||||
Payroll Loans | 52,044,106 | 47,029,722 | 52,044,106 | 47,029,722 | ||||
Financing and Vehicles Lease | 1,968,153 | 2,249,094 | 56,320,419 | 55,874,243 | ||||
Others (2) | 50,502,083 | 41,403,352 | 54,673,545 | 43,765,613 | ||||
Agricultural | 4,757,133 | 4,161,213 | 4,843,593 | 4,244,334 | ||||
Public Sector | 1,040,265 | 1,018,805 | 1,041,243 | 1,020,003 | ||||
State | 378,410 | 399,669 | 378,410 | 399,669 | ||||
Municipal | 661,855 | 619,136 | 662,833 | 620,334 | ||||
Total | 380,172,222 | 347,460,227 | 450,178,782 | 411,650,894 |
(1) Includes the activities of mortgage companies - business plan, transportation services, health, personal and others.
(2) Includes personal loans, overdraft among others.
d) Classification of Loan Portfolio and Respective Allowance for Loan Losses by Risk Level
Bank | ||||||||||||||||||||||||||
9/30/2021 | 12/31/2020 | |||||||||||||||||||||||||
% | Loan Portfolio | Allowance | Loan Portfolio | Allowance | ||||||||||||||||||||||
Risk Level | Minimum Allowance Required | Current | Past Due (1) | Total (3) | Required | Additional (2) | Total | Current | Past Due (1) | Total (3) | Required | Additional (2) | Total | |||||||||||||
AA | 0.0% | 180,764,402 | - | 180,764,402 | - | - | - | 162,569,532 | - | 162,569,532 | - | - | - | |||||||||||||
A | 0.5% | 101,911,632 | - | 101,911,632 | 509,558 | 2 | 509,560 | 98,084,064 | - | 98,084,064 | 490,420 | 331,959 | 822,379 | |||||||||||||
B | 1.0% | 33,985,506 | 2,329,918 | 36,315,424 | 363,154 | 157 | 363,311 | 31,497,816 | 1,989,791 | 33,487,607 | 334,876 | 572,154 | 907,030 | |||||||||||||
C | 3.0% | 26,245,107 | 2,568,232 | 28,813,339 | 864,400 | 1,387,414 | 2,251,814 | 23,128,620 | 1,789,539 | 24,918,159 | 747,545 | 1,561,868 | 2,309,413 | |||||||||||||
D | 10.0% | 8,850,250 | 2,741,213 | 11,591,463 | 1,159,146 | 2,040,988 | 3,200,134 | 8,215,630 | 1,943,697 | 10,159,327 | 1,015,933 | 1,763,634 | 2,779,567 | |||||||||||||
E | 30.0% | 2,224,311 | 1,945,513 | 4,169,824 | 1,250,946 | 654,304 | 1,905,250 | 2,254,334 | 1,547,171 | 3,801,505 | 1,140,451 | 600,261 | 1,740,712 | |||||||||||||
F | 50.0% | 1,784,963 | 1,728,239 | 3,513,202 | 1,756,601 | 543,912 | 2,300,513 | 1,831,369 | 1,335,331 | 3,166,700 | 1,583,350 | 503,804 | 2,087,154 | |||||||||||||
G | 70.0% | 1,748,447 | 1,618,972 | 3,367,419 | 2,357,193 | 694,051 | 3,051,244 | 1,771,853 | 1,069,343 | 2,841,196 | 1,988,837 | 764,272 | 2,753,109 | |||||||||||||
H | 100.0% | 3,678,966 | 6,130,160 | 9,809,126 | 9,809,126 | - | 9,809,126 | 3,390,140 | 5,045,940 | 8,436,080 | 8,436,080 | - | 8,436,080 | |||||||||||||
Total | - | 361,193,584 | 19,062,247 | 380,255,831 | 18,070,124 | 5,320,828 | 23,390,952 | 332,743,358 | 14,720,812 | 347,464,170 | 15,737,492 | 6,097,952 | 21,835,444 | |||||||||||||
Consolidated | ||||||||||||||||||||||||||
9/30/2021 | 12/31/2020 | |||||||||||||||||||||||||
Loan Portfolio | Allowance | Loan Portfolio | Allowance | |||||||||||||||||||||||
Risk Level | % Minimum Allowance Required | Current | Past Due (1) | Total (3) | Required | Additional (2) | Total | Current | Past Due (1) | Total (3) | Required | Additional (2) | Total | |||||||||||||
AA | 0.0% | 201,060,888 | - | 201,060,888 | - | - | - | 174,672,176 | - | 174,672,176 | - | - | - | |||||||||||||
A | 0.5% | 136,018,880 | 981 | 136,019,861 | 680,099 | 2 | 680,101 | 136,895,625 | - | 136,895,625 | 684,478 | 331,960 | 1,016,438 | |||||||||||||
B | 1.0% | 40,247,370 | 3,713,814 | 43,961,184 | 439,612 | 157 | 439,769 | 37,161,806 | 2,947,768 | 40,109,574 | 401,096 | 572,154 | 973,250 | |||||||||||||
C | 3.0% | 27,942,542 | 3,832,152 | 31,774,694 | 953,241 | 1,387,414 | 2,340,655 | 24,491,130 | 2,742,311 | 27,233,441 | 817,002 | 1,575,498 | 2,392,500 | |||||||||||||
D | 10.0% | 9,330,347 | 3,435,819 | 12,766,166 | 1,276,617 | 2,120,494 | 3,397,111 | 8,768,027 | 2,459,727 | 11,227,754 | 1,122,775 | 1,927,260 | 3,050,035 | |||||||||||||
E | 30.0% | 2,478,292 | 2,476,295 | 4,954,587 | 1,486,376 | 773,464 | 2,259,840 | 2,374,369 | 2,124,173 | 4,498,542 | 1,349,562 | 704,758 | 2,054,320 | |||||||||||||
F | 50.0% | 2,104,949 | 2,141,235 | 4,246,184 | 2,123,092 | 640,767 | 2,763,859 | 1,929,261 | 1,868,256 | 3,797,517 | 1,898,759 | 578,271 | 2,477,030 | |||||||||||||
G | 70.0% | 1,883,476 | 1,953,898 | 3,837,374 | 2,686,162 | 804,530 | 3,490,692 | 1,848,376 | 1,366,129 | 3,214,505 | 2,250,153 | 848,059 | 3,098,212 | |||||||||||||
H | 100.0% | 3,968,909 | 7,672,544 | 11,641,453 | 11,641,453 | - | 11,641,453 | 3,661,255 | 6,344,449 | 10,005,704 | 10,005,704 | - | 10,005,704 | |||||||||||||
Total | 425,035,653 | 25,226,738 | 450,262,391 | 21,286,652 | 5,726,828 | 27,013,480 | 391,802,025 | 19,852,813 | 411,654,838 | 18,529,529 | 6,537,960 | 25,067,489 |
(1) Includes due and overdue installments.
(2) The additional provision is constituted mainly based on the expected realization of the loan portfolio, in addition to the minimum required by current regulations.
(3) In the Bank and in the Consolidated, the total loan portfolio includes the amount of R$83,609 (12/31/2020 - R$3,944), referring to the adjustment to market value of credit operations that are object of protection, recorded in accordance with article 5 of Circular Letter 3,624 of Bacen of December 26, 2013 and which are not included in the note on risk levels (Note 6. b.VI.a).
Emergency Employment Support Program (PESE)
Pursuant to CMN Resolution No. 4,846/20, we demonstrate below the operations related to the Emergency Employment Support Program (PESE), classified by risk level and together with the amount of the provision made for each risk level:
Bank | Consolidated |
Bank | Consolidated |
|
|
| 9/30/2020 |
| 9/30/2020 |
Risk Level | % Minimun Required Provision | Assets | Provision Required | Assets | Provision Rquired |
AA | 0.5% | 10,776 | - | 10,776 | - |
A | 1.0% | 411,749 | 309 | 411,749 | 309 |
B | 3.0% | 376,211 | 564 | 376,211 | 564 |
C | 10.0% | 392,438 | 1,766 | 392,438 | 1,766 |
D | 30.0% | 199,584 | 2,994 | 199,584 | 2,994 |
E | 50.0% | 1,797 | 89 | 1,797 | 89 |
F | 70.0% | 175 | 21 | 175 | 21 |
H | 100.0% | 246 | 37 | 246 | 37 |
Total | - | 1,392,976 | 5,780 | 1,392,976 | 5,780 |
e) Changes in Allowance for Loan Losses
Bank | Consolidated | |||||||
01/01 to 9/30/2021 | 01/01 to 9/30/2020 | 01/01 to 9/30/2021 | 01/01 to 9/30/2020 | |||||
Opening Balance | 21,835,445 | 18,661,967 | 25,067,489 | 21,408,092 | ||||
Allowances Recognized | 9,589,479 | 10,719,910 | 11,436,662 | 13,501,276 | ||||
Write-offs | (8,033,972) | (7,398,270) | (9,490,671) | (9,908,695) | ||||
Closing Balance | 23,390,952 | 21,983,607 | 27,013,480 | 25,000,673 | ||||
Recoveries Credits | 2,332,944 | 1,782,654 | 2,621,011 | 2,060,762 |
f) Renegotiated Credits
Bank | Consolidated | |||||||
9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | |||||
Renegotiated Credits | 19,240,686 | 18,197,875 | 22,887,505 | 22,987,914 | ||||
Allowance for Loan Losses | (10,119,291) | (9,196,227) | (11,308,664) | (10,411,547) | ||||
Percentage of Coverage on Renegotiated Credits | 52.6% | 50.5% | 49.4% | 45.3% |
g) Loan Portfolio Concentration
Consolidated | ||||||||
9/30/2021 | 12/31/2020 | |||||||
Loan Portfolio and Credit Guarantees (1), Securities (2) and Derivatives Financial Instruments (3) | Risk | % | Risk | % | ||||
Largest Debtor | 7,823,698 | 1.4% | 6,782,322 | 1.3% | ||||
10 Largest | 42,525,166 | 7.5% | 33,571,246 | 6.5% | ||||
20 Largest | 63,801,806 | 11.2% | 54,105,883 | 10.5% | ||||
50 Largest | 99,935,403 | 17.6% | 89,753,598 | 17.4% | ||||
100 Largest | 131,470,588 | 23.1% | 119,028,823 | 23.1% |
(1) Includes installments of credit to builders/developers.
(2) Refers to debentures, promissory notes and certificates of real estate receivables – CRI.
(3) Refers to credit of derivatives risk.
9. Other Financial Assets
Bank | ||||
9/30/2021 | 12/31/2020 | |||
Total | Total | |||
Exchange Portfolio | 57,017,937 | 91,438,544 | ||
Trading and Intermediation of Values | 4,004,374 | 3,824,827 | ||
Interbank Accounts | 83,124,855 | 75,810,738 | ||
Receipts and Payments Pending Settlement | - | 728 | ||
Credits for Avals and Sureties Honored | 164,024 | 228,754 | ||
Total | 144,311,190 | 171,303,591 | ||
Consolidated | ||||
9/30/2021 | 12/31/2020 | |||
Exchange Portfolio | 57,017,937 | 91,438,544 | ||
Trading and Intermediation of Values | 11,796,966 | 6,859,624 | ||
Interbank Accounts | 83,418,534 | 91,368,033 | ||
Receipts and Payments Pending Settlement | - | 728 | ||
Credits for Avals and Sureties Honored | 649,544 | 51,583 | ||
Total | 152,882,981 | 189,718,512 |
10. Tax Assets and Liabilities
a) Tax Assets
a.1) Nature and Origin of Recorded Deferred Tax Assets
Origins | Bank | |||||||||||||
Balances on | Balances on | |||||||||||||
9/30/2021 | 12/31/2020 | 12/31/2020 | Recognition (4) | Realization | 9/30/2021 | |||||||||
Allowance for Loan Losses | 33,524,216 | 38,275,701 | 17,224,066 | 4,395,330 | (6,533,499) | 15,085,897 | ||||||||
Reserve for Legal and Administrative Proceedings - Civil | 4,041,916 | 4,004,582 | 1,802,063 | 1,250,143 | (1,233,343) | 1,818,863 | ||||||||
Reserve for Tax Risks and Legal Obligations | 3,663,039 | 3,580,550 | 1,574,966 | 63,709 | (26,588) | 1,612,087 | ||||||||
Reserve for Legal and Administrative Proceedings - Labor | 5,711,599 | 5,345,668 | 2,405,551 | 698,098 | (533,429) | 2,570,220 | ||||||||
Goodwill | 113,814 | 127,511 | 57,380 | 739 | (6,904) | 51,215 | ||||||||
Adjustment to Fair Value of Trading Securities and Derivatives (1) | 2,963,173 | 4,643,314 | 2,208,244 | 1,498,813 | (2,140,333) | 1,566,724 | ||||||||
Adjustment to Fair Value of Available-for-sale Securities and | 3,679,653 | 414,355 | 197,057 | 1,638,235 | - | 1,835,292 | ||||||||
Accrual for Pension Plan (2) | 2,200,699 | 1,223,801 | 1,363,434 | 178,593 | (551,713) | 990,314 | ||||||||
Profit Sharing, Bonuses and Personnel Gratuities | 860,289 | 1,010,089 | 435,588 | 602,429 | (676,721) | 361,296 | ||||||||
Other Temporary Provisions (3) | 6,875,413 | 6,661,588 | 2,898,461 | 173,191 | (59,811) | 3,011,841 | ||||||||
Total Tax Assets on Temporary Differences | 63,633,811 | 65,287,159 | 30,166,810 | 10,499,280 | (11,762,341) | 28,903,749 | ||||||||
Tax Losses and Negative Social Contribution Bases | 10,563,063 | 12,023,746 | 5,407,013 | - | (597,031) | 4,809,982 | ||||||||
Social Contribution Tax - Executive Act 2,158/2001 | - | - | 175,158 | 3,131 | - | 178,289 | ||||||||
Balance of Recorded Deferred Tax Assets | 74,196,874 | 77,310,905 | 35,748,981 | 10,502,411 | (12,359,372) | 33,892,020 | ||||||||
Origins | Consolidated | |||||||||||||
Balances on | Balances on | |||||||||||||
9/30/2021 | 12/31/2020 | 12/31/2020 | Recognition (4) | Realization | 9/30/2021 | |||||||||
Allowance for Loan Losses | 39,625,152 | 43,906,296 | 19,481,029 | 5,183,341 | (7,109,743) | 17,554,627 | ||||||||
Reserve for Legal and Administrative Proceedings - Civil | 4,301,062 | 4,243,712 | 1,893,379 | 1,311,272 | (1,286,069) | 1,918,582 | ||||||||
Reserve for Tax Risks and Legal Obligations | 5,966,051 | 5,923,272 | 2,482,770 | 82,775 | (49,355) | 2,516,190 | ||||||||
Reserve for Legal and Administrative Proceedings - Labor | 6,083,295 | 5,737,510 | 2,553,076 | 723,327 | (566,266) | 2,710,137 | ||||||||
Goodwill | 113,814 | 127,511 | 57,380 | 740 | (6,904) | 51,216 | ||||||||
Adjustment to Fair Value of Trading Securities and Derivatives (1) | 2,979,194 | 4,742,032 | 2,215,268 | 1,529,151 | (2,140,945) | 1,603,474 | ||||||||
Adjustment to Fair Value of Available-for-sale Securities and | 4,300,249 | 657,120 | 255,286 | 1,910,102 | (57,974) | 2,107,414 | ||||||||
Accrual for Pension Plan (2) | 2,224,911 | 1,264,591 | 1,377,669 | 178,593 | (557,715) | 998,547 | ||||||||
Profit Sharing, Bonuses and Personnel Gratuities | 952,304 | 1,198,427 | 492,880 | 645,303 | (736,912) | 401,271 | ||||||||
Other Temporary Provisions (3) | 7,746,060 | 7,594,777 | 3,233,166 | 236,498 | (145,402) | 3,324,262 | ||||||||
Total Tax Assets on Temporary Differences | 74,292,092 | 75,395,248 | 34,041,903 | 11,801,102 | (12,657,285) | 33,185,720 |
Tax Losses and Negative Social Contribution Bases | 10,823,223 | 12,425,981 | 5,703,772 | 3,879 | (647,117) | 5,060,534 | ||||||
Social Contribution Tax - Executive Act 2,158/2001 | - | - | 175,158 | 3,131 | - | 178,289 | ||||||
Balance of Recorded Deferred Tax Assets | 85,115,315 | 87,821,229 | 39,920,833 | 11,808,082 | (13,304,402) | 38,424,543 |
(1) Includes deferred tax assets of IRPJ, CSLL, PIS and COFINS.
(2) Includes deferred tax assets of IRPJ and CSLL, on adjustments to the employee benefit plan.
(3) Mainly composed of provisions of an administrative nature.
(4) Includes the effects of the change in the CSLL rate.
On September 30, 2021, unrecorded tax credits totaled R$106,138 (12/31/2020 – R$41,418) in the Consolidated.
The accounting record of Deferred Tax Assets in Santander Brasil's financial statements was made at the rates applicable to the expected period of their realization and is based on the projection of future results and on a technical study prepared pursuant to CMN Resolution No. 4,842/2020 and BCB Resolution No. 15.
a.2) Expected Realization of Recorded Tax Assets
Bank | ||||||||||||
9/30/2021 | ||||||||||||
Temporary Differences | Tax Loss - Carryforwards | Total | ||||||||||
Year | IRPJ | CSLL | PIS/COFINS | CSLL 18% | Recorded | |||||||
2021 | 3,067,414 | 2,462,498 | 51,585 | - | 5,581,497 | |||||||
2022 | 2,342,855 | 1,913,718 | 206,340 | 3,342,307 | 178,289 | 7,983,509 | ||||||
2023 | 4,847,082 | 3,899,539 | 154,755 | 1,467,675 | - | 10,369,051 | ||||||
2024 | 3,898,112 | 3,134,909 | - | - | - | 7,033,021 | ||||||
2025 | 1,078,286 | 805,207 | - | - | - | 1,883,493 | ||||||
2026 to 2030 | 509,084 | 428,407 | - | - | - | 937,491 | ||||||
Over 2031 | 57,755 | 46,203 | - | - | - | 103,958 | ||||||
Total | 15,800,588 | 12,690,481 | 412,680 | 4,809,982 | 178,289 | 33,892,020 | ||||||
Consolidated | ||||||||||||
9/30/2021 | ||||||||||||
Temporary Differences | Tax Loss - Carryforwards | Total | ||||||||||
Year | IRPJ | CSLL | PIS/COFINS | CSLL 18% | Recorded | |||||||
2021 | 3,314,452 | 2,574,158 | 54,234 | 40,905 | 5,983,749 | |||||||
2022 | 3,063,721 | 2,348,857 | 216,937 | 3,398,997 | 178,289 | 9,206,801 | ||||||
2023 | 5,516,891 | 4,307,742 | 162,702 | 1,493,647 | - | 11,480,638 | ||||||
2024 | 4,365,723 | 3,423,800 | - | 26,009 | - | 7,815,210 | ||||||
2025 | 1,633,339 | 1,115,373 | - | 11,862 | - | 2,760,409 | ||||||
2026 to 2030 | 536,760 | 446,456 | - | 89,114 | - | 1,072,319 | ||||||
Over 2031 | 58,208 | 46,367 | - | - | - | 104,575 | ||||||
Total | 18,489,094 | 14,262,753 | 433,873 | 5,060,534 | 178,289 | 38,424,543 |
(1) Social Contribution on Net Income to be offset pursuant to Article 8 of Provisional Measure No. 2158-35 of 08/24/2021.
Due to the differences between accounting, tax and corporate criteria, the expected realization of deferred tax assets should not be taken as an indication of the value of future results.
Based on CMN Resolution 4818/2020 and BCB Resolution 2/2020, Tax Credits must be fully presented in the long term, for balance sheet purposes.
a.3) Present Value of Deferred Tax Assets
The present value of deferred tax assets recorded is R$32,403,781 (12/31/2020 - R$33,863,523) in the Bank and R$36,694,714 (12/31/2020 - R$37,749,808) in the Consolidated, calculated in accordance with the expected realization of temporary differences, tax loss, negative CSLL bases, Social Contribution 18% - MP 2158/2001 and the average funding rate, projected for the corresponding periods.
b) Other Liabilities - Tax and Social Security
Bank | Consolidated | ||||||
9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | ||||
Deferred Tax Liabilities | 2,559,674 | 4,433,050 | 3,207,108 | 5,042,170 | |||
Provision for Taxes and Contributions on Income | 32,773 | 22,562 | 1,244,081 | 214,506 | |||
Taxes Payable | 671,422 | 933,223 | 1,002,069 | 2,051,704 | |||
Total | 3,263,869 | 5,388,835 | 5,453,258 | 7,308,380 |
b.1) Nature and Origin of Deferred Tax Liabilities
Origins | Bank | |||||||||||
Balances on | Balances on | |||||||||||
9/30/2021 | 12/31/2020 | 12/31/2020 | Recognition | Realization | 9/30/2021 | |||||||
Adjustment to Fair Value of Trading Securities and Derivatives (1) | 1,028,599 | 10,099,545 | 1,626,237 | 3,648,090 | (4,761,295) | 513,032 | ||||||
Adjustment to Fair Value of Available-for-Sale Securities and Cash Flow Hedge (1) | 3,811,080 | 16,595,256 | 2,672,182 | 50,271 | (821,609) | 1,900,844 | ||||||
Excess Depreciation of Leased Assets | 21,466 | 21,619 | 5,405 | - | (38) | 5,367 | ||||||
Others | 312,474 | 287,581 | 129,226 | 12,356 | (1,151) | 140,431 | ||||||
Total | 5,173,619 | 27,004,001 | 4,433,050 | 3,710,717 | (5,584,093) | 2,559,674 | ||||||
|
| |||||||||||
Origins | Consolidated | |||||||||||
Balances on | Balances on | |||||||||||
9/30/2021 | 12/31/2020 | 12/31/2020 | Recognition | Realization | 9/30/2021 | |||||||
Adjustment to Fair Value of Trading Securities and Derivatives (1) | 1,464,581 | 10,524,275 | 1,826,233 | 3,692,703 | (4,789,142) | 729,794 | ||||||
Adjustment to Fair Value of Available-for-Sale Securities and Cash Flow Hedge (1) | 3,977,954 | 16,871,322 | 2,672,182 | 126,496 | (892,782) | 1,905,896 | ||||||
Excess Depreciation of Leased Assets | 1,319,792 | 1,287,747 | 318,336 | 48,226 | (36,659) | 329,903 | ||||||
Others | 568,280 | 534,252 | 225,419 | 21,610 | (5,514) | 241,515 | ||||||
Total | 7,330,607 | 29,217,596 | 5,042,170 | 3,889,035 | (5,724,097) | 3,207,108 |
(1) Includes IRPJ, CSLL, PIS and Cofins.
b.2) Expected Realization of Deferred Tax Liabilities
Bank | ||||||||
9/30/2021 | ||||||||
Temporary Differences | Total | |||||||
Year | IRPJ | CSLL | PIS/COFINS | Recorded | ||||
2021 | 153,640 | 367,650 | 29,503 | 550,793 | ||||
2022 | 614,561 | 490,199 | 118,010 | 1,222,770 | ||||
2023 | 463,321 | 127,223 | 88,508 | 679,052 | ||||
2024 | 9,153 | 6,231 | - | 15,384 | ||||
2025 | 7,812 | 6,231 | - | 14,043 | ||||
2026 to 2030 | 39,059 | 31,156 | - | 70,215 | ||||
After 2031 | 5,859 | 1,558 | - | 7,417 | ||||
Total | 1,293,405 | 1,030,248 | 236,021 | 2,559,674 | ||||
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Consolidated | ||||||||
9/30/2021 | ||||||||
Temporary Differences | Total | |||||||
Year | IRPJ | CSLL | PIS/COFINS | Recorded | ||||
2021 | 310,171 | 380,045 | 31,770 | 721,986 | ||||
2022 | 827,751 | 535,753 | 127,079 | 1,490,583 | ||||
2023 | 559,128 | 163,453 | 95,490 | 818,071 | ||||
2024 | 46,893 | 12,654 | 725 | 60,272 | ||||
2025 | 12,877 | 7,144 | 725 | 20,746 | ||||
2026 to 2030 | 47,519 | 34,633 | 3,624 | 85,776 | ||||
After 2031 | 7,080 | 2,050 | 544 | 9,674 | ||||
Total | 1,811,419 | 1,135,732 | 259,957 | 3,207,108 |
c) Income Tax and Social Contribution
Bank | |||||
01/07 to 9/30/2021 | 01/01 to 9/30/2021 | 07/01 to 9/30/2020 | 01/01 to 9/30/2020 | ||
Income Before Taxes on Income and Profit Sharing | 3,621,435 | 16,312,508 | 4,190,742 | (3,004,345) | |
Profit Sharing (1) | (460,459) | (1,318,592) | (411,331) | (1,291,581) | |
Income Before Taxes | 3,160,974 | 14,993,916 | 3,779,411 | (4,295,926) | |
Total Income and Social Contribution Tax at the Rates of 25% and 20%, Respectively (3) | (1,580,487) | (7,496,958) | (1,700,735) | 1,933,166 | |
Equity in Subsidiaries (2) | 515,697 | 1,397,397 | 186,768 | 1,006,768 | |
Nondeductible Expenses, Net of Non-Taxable Income | 51,207 | (420,766) | 38,027 | 29,221 | |
Exchange Variation - Foreign Branches | 800,867 | 469,771 | 986,571 | 9,032,479 | |
Income and Social Contribution Taxes on Temporary Differences and Tax Losses from Previous Exercises | (12,606) | 266,445 | 43,254 | 503,511 | |
Interest on Capital | 1,323,811 | 1,323,812 | 346,500 |
| 733,500 |
Effects of Change in Rate of CSLL (3) | (119,171) | 472,477 | - | - | |
Other Adjustments Social Contribution Taxes 5% (4) | (109,261) | 108,773 | - |
| 56,791 |
Other Adjustments, Including Profits Provided Abroad | 193,580 | 204,823 | 64,131 | 687,295 | |
Income and Social Contribution Taxes | 1,063,637 | (3,674,226) | (35,484) | 13,982,731 | |
Current Taxes | 3,028,021 | (1,787,875) | 368,258 | (2,042) | |
Income tax and social contribution for the year | 3,028,021 | (1,787,875) | 368,258 | (2,042) |
Deferred Taxes | (3,362,788) | (1,289,319) | (536,417) | 2,110,157 | |
Constitution / realization in the period on temporary additions and exclusions - Result | (3,362,788) | (1,289,319) | (536,417) | 2,110,157 | |
Use of opening balances of: | 1,398,404 | (597,032) | - | - | |
Negative social contribution base | 677,306 | (192,174) | - | - | |
Tax loss | 721,098 | (404,858) | - | - | |
Constitution in the period on: | - | - | 132,675 | 11,874,616 | |
Negative social contribution base | - | - | 58,967 | 5,277,607 | |
Tax loss | - | - | 73,708 | 6,597,009 | |
Total deferred taxes | (1,964,384) | (1,886,351) | (403,742) | 13,984,773 | |
Income tax and social contribution | 1,063,637 | (3,674,226) | 1,063,636 | 13,982,731 |
Consolidated | |||||
07/01 to 9/30/2021 | 01/01 to 9/30/2021 | 07/01 to 9/30/2020 | 01/01 to 9/30/2020 | ||
Income Before Taxes on Income and Profit Sharing | 4,417,669 | 18,272,013 | 4,709,588 | (1,520,174) | |
Profit Sharing (1) | (501,171) | (1,441,638) | (457,730) | (1,421,238) | |
Unrealized Income | 3,812 | 4,170 | 8,341 | 68,209 | |
Income Before Taxes | 3,920,309 | 16,834,544 | 4,260,200 | (2,873,202) | |
Total Income and Social Contribution Tax at the Rates of 25% and 20%, Respectively (5) | (1,960,155) | (8,417,272) | (1,917,090) | 1,292,941 | |
Equity in Subsidiaries (2) | 11,798 | 24,653 | 6,926 | 11,223 | |
Nondeductible Expenses, Net of Non-Taxable Income | 45,285 | (419,454) | 43,280 | 47,416 | |
Exchange Variation - Foreign Branches | 800,868 | 469,771 | 986,571 | 9,032,479 | |
Income and Social Contribution Taxes on Temporary Differences and Tax Losses from Previous Exercises | (34,411) | 270,303 | 38,244 | 544,467 | |
Interest on Capital | 1,323,812 | 1,329,302 | 333,000 | 733,500 | |
Effects of Change in Rate of CSLL (3) | 50,070 | 878,275 | 64,671 | 237,565 | |
Other Adjustments Social Contribution Taxes 5% | (168,847) | 100,825 | (9,122) | 63,374 | |
Other Adjustments, Including Profits Provided Abroad | 306,434 | 211,573 | 40,895 | 690,282 | |
Income and Social Contribution Taxes | 374,855 | (5,552,024) | (412,625) | 12,653,247 | |
Current Taxes | 2,272,594 | (3,853,236) | 65,343 | (1,805,361) | |
Income tax and social contribution for the year | 2,272,594 | (3,853,236) | 65,343 | (1,805,361) | |
Deferred Taxes | (3,275,084) | (1,054,253) | (610,643) | 2,623,811 | |
Constitution / realization in the period on temporary additions and exclusions - Result | (3,275,084) | (1,054,253) | (610,643) | 2,623,811 | |
Use of opening balances of: | 1,379,874 | (646,670) | - | (39,819) | |
Negative social contribution base | 676,121 | (193,358) | (18,119) | (40,241) | |
Tax loss | 703,753 | (453,312) | (49,371) | (67,068) | |
Constitution in the period on: | (2,529) | 2,135 | 132,675 | 11,874,616 | |
Negative social contribution base | (598) | 565 | 58,967 | 5,277,607 | |
Tax loss | (1,931) | 1,570 | 73,708 | 6,597,009 | |
Total deferred taxes | (198,951) | (1,698,788) | (477,968) | 14,458,608 | |
Income tax and social contribution | 374,855 | (5,552,024) | (412,625) | 12,653,247 |
(1) The calculation basis is net income, after income tax and social contribution.
(2) Interest on equity received and receivable is not included in the result of interests in affiliates and subsidiaries.
(3) Effect of the rate differential for other non-financial and financial companies, whose social contribution rate is 9% and 20%.
(4) Increase in the CSLL rate, as of July 2021, until December 31, 2021.
Exchange Hedge of Grand Cayman Agency, Luxembourg Agency
Banco Santander operates branches in the Cayman Islands and Luxembourg, which are used mainly to raise funds in the international capital and financial markets, to provide the Bank with lines of credit that are extended to its customers for financing foreign trade and working capital (Note 12).
To cover exposure to exchange variations, the Bank uses derivatives and funding. According to Brazilian tax rules, gains or losses arising from the impact of the appreciation or devaluation of the Real on foreign investments were not taxable, but as of January 2021 they became taxable or deductible for IR/CSLL purposes, while that the gains or losses on derivatives used as hedging are taxable or deductible. The purpose of these derivatives is to protect net income after taxes.
Law 14,031, of July 28, 2020, determined that as of January 2021, 50% of the exchange rate variation of investments abroad must be computed in the determination of the taxable income and in the calculation basis of the Social Contribution on Net Income (CSLL) of the investing legal entity domiciled in the country. As of 2022, the exchange variation will be fully computed on the tax bases of IRPJ and CSLL.
The different tax treatment of such exchange differences results in volatility in “Operating Income before Taxation” and in the “Income Taxes” caption. Below are the effects of the transactions carried out, as well as the total effect of the exchange hedge for the periods ended September 30, 2021 and 2020:
R$ | 01/01 to 9/30/2021 | 01/01 to 9/30/2020 | ||
Financial Operations | ||||
Result generated by the exchange rate variations on the Bank's investment in the Cayman and EFC Agency | 2,436 | 21,807,261 | ||
Result generated by derivative contracts used as hedge | (4,058) | (40,098,666) | ||
Tax Expenses | ||||
Tax effect of derivative contracts used as hedge - PIS/COFINS | 167 | 772,189 | ||
Income Tax and Social Contribution | ||||
Tax effect of derivative contracts used as hedge - IR/CS | 1,455 | 17,519,216 |
(1) Banco Santander maintained an investment in a subsidiary abroad called Santander Brasil, Establecimiento Financiero de Credito, S.A., which was dissolved and liquidated on December 15, 2020.
11. Other Assets
Bank | Consolidated | ||||||
9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | ||||
Notes and Credits Receivable (Note 8.a) | |||||||
Credit Cards | 33,640,905 | 31,861,356 | 33,640,894 | 31,861,356 | |||
Receivables (1) | 27,260,084 | 28,706,517 | 31,402,187 | 32,476,841 | |||
Escrow Deposits for: | |||||||
Tax Claims | 5,795,756 | 5,756,068 | 7,566,134 | 7,507,557 | |||
Labor Claims | 1,870,192 | 1,978,893 | 1,998,306 | 2,144,435 | |||
Others - Civil | 1,089,081 | 1,108,009 | 1,260,217 | 1,330,431 | |||
Contract Guarantees - Former Controlling Stockholders (Note 19.f) | 496 | 496 | 496 | 496 | |||
Reimbursable Payments | 138,559 | 164,809 | 151,142 | 223,676 | |||
Salary Advances/Others | 160,131 | 120,339 | 554,217 | 263,997 | |||
Employee Benefit Plan | 316,016 | 291,012 | 386,565 | 361,149 | |||
Debtors for Purchase of Assets (Note 8.a) | 586,540 | 622,564 | 636,754 | 687,565 | |||
Receivable from Affiliates | 79,434 | 19,049 | 196,041 | 18,195 | |||
Income Receivable | 2,520,390 | 2,546,048 | 2,563,042 | 2,356,322 | |||
Other Values and Assets | 1,675,162 | 1,809,180 | 1,894,480 | 2,131,653 | |||
Others | 1,562,457 | 1,291,091 | 1,773,540 | 3,590,911 | |||
Total | 76,695,203 | 76,275,432 | 84,028,046 | 84,954,584 |
(1) It consists of operations with credit assignment characteristics substantially composed of "Confirming" operations with companies’ subject to credit risk and analysis of loan losses by segment in accordance with the Bank risk policies.
12. Dependences Information and Foreign Subsidiary
Branches:
Grand Cayman Branch (Cayman Branch)
The Grand Cayman Branch is licensed under the Banking and Trust Company Act and is duly registered as a Foreign Company with the Grand Cayman, Cayman Islands Corporate Registry Officer. The agency, therefore, is duly authorized to carry out banking business in the Cayman Islands, and is currently involved in fundraising business in the international banking and capital market to provide lines of credit to Banco Santander, which are then extended to the Bank's customers. Santander for working capital and foreign trade financing. It also takes deposits in foreign currency from corporate and individual clients and grants credit to Brazilian and foreign clients, primarily to support commercial operations with Brazil.
Luxembourg
On June 9, 2017, Banco Santander obtained authorization from Bacen to set up a branch in Luxembourg, with outstanding capital of US$1 billion, with the objective of complementing the foreign trade strategy for corporate clients (large Brazilian companies and their operations abroad) and offer financial products and services through an offshore entity that is not established in a jurisdiction with favored taxation and that allows the expansion of the funding capacity. The opening of the branch was authorized by the Minister of Finance of Luxembourg on March 5, 2018. On April 3, 2018, after the Cayman Branch's capital was reduced by an equivalent amount, the amount of US$1 billion was allocated to the capital. seconded company from the Luxembourg agency.
Subsidiary:
Banco Santander had a subsidiary in Spain, Santander Brasil, Establecimiento Financiero de Credito, SA (Santander Brasil EFC), to complement the foreign trade strategy for corporate clients (large Brazilian companies and their operations abroad) and offer products and services through an offshore entity that is not established in a tax-favorable jurisdiction.
On November 12, 2020, by decision of its sole partner, the dissolution and liquidation of Santander Brasil, Establecimiento Financiero de Credito, S.A. (which had its corporate name changed to Santander Brasil, S.A.U.) was approved. The capital invested abroad was repatriated in November 2020. The company's dissolution and liquidation deed were registered in the Madrid Registry with effect from December 15, 2020. These activities are now carried out by the Bank's branch in Luxembourg.
The summarized financial positions of the branches and subsidiary abroad, converted at the exchange rate in effect on the balance sheet date included in the financial statements, comprise the following positions (without eliminating transactions with affiliates):
Grand Cayman Branch (3) | Luxembourg Branch (3) | Santander Brasil EFC (3) | |||||||||
9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | ||||||
Assets | 177,247,526 | 160,340,976 | 67,041,710 | 37,555,040 | - | 1,303 | |||||
Current and Long-term Assets | 177,247,501 | 160,340,976 | 67,041,507 | 37,554,771 | - | 1,303 | |||||
Cash | 6,687,964 | 10,992,918 | 2,067,908 | 1,116,505 | - | 1,253 | |||||
Interbank Investments | 38,793,389 | 38,123,942 | 6,644,013 | 8,542,030 | - | - | |||||
Securities and Derivatives Financial Instruments | 90,520,945 | 77,537,745 | 14,428,175 | 1,872,724 | - | - | |||||
Lending Operations (1) | 23,721,959 | 21,216,364 | 40,418,708 | 24,813,536 | - | - | |||||
Foreign Exchange Portfolio | 13,187,022 | 6,800,895 | 2,864,389 | 884,473 | - | - | |||||
Others | 4,336,222 | 5,669,112 | 618,314 | 325,503 | - | 50 | |||||
Permanent Assets | 25 | - | 203 | 269 | - | - | |||||
Liabilities | 177,247,526 | 160,340,976 | 67,041,710 | 37,555,040 | - | 1,303 | |||||
Current and Long-term Liabilities | 122,970,713 | 108,823,123 | 59,498,786 | 30,939,233 | - | 18 | |||||
Deposits and Money Market Funding | 28,805,676 | 31,461,468 | 4,465,045 | 4,161,763 | - | - | |||||
Funds from Acceptance and Issuance of Securities | 20,982,086 | 19,454,058 | 30,437,141 | 10,784,221 | - | - | |||||
Debt Instruments Eligible to Compose Capital | 13,957,208 | 13,119,659 | - | - | - | - | |||||
Borrowings (2) | 33,862,468 | 26,090,092 | 20,598,213 | 14,070,809 | - | - | |||||
Foreign Exchange Portfolio | 13,148,620 | 6,869,559 | 2,828,159 | 908,932 | - | - | |||||
Others | 12,214,655 | 11,828,287 | 1,170,228 | 1,013,508 | - | 18 | |||||
Deferred Income | 31,322 | 171 | 11,985 | 13,339 | - | - | |||||
Stockholders' Equity | 54,245,491 | 51,517,682 | 7,530,939 | 6,602,468 | - | 1,285 | |||||
01/01 to | 01/01 to | 01/01 to | 01/01 to | 01/01 to | 01/01 to | ||||||
Net Income | 1,752,165 | 2,578,250 | 518,437 | 625,983 | - | 1,881 |
(1) Refers mainly to lending and export financing operations.
(2) Borrowings abroad regarding financing lines to exports and imports and other lines of credit.
(3) The functional currency is Real.
13. Investments in Affiliates and Subsidiaries Subsidiary
a) Consolidation Perimeter
Quantity of Shares or Quotas Owned (in Thousands) | 9/30/2021 | |||||
Investiments | Activity | Common Shares and Quotas | Preferred Shares | Direct Participation | Participation | |
Controlled by Banco Santander | ||||||
Atual Serviços de Recuperação de Créditos e Meios Digitais S.A. | Recovery of Defaulted Credits | 2,142,011 | - | 100.00% | 100.00% | |
Aymoré Crédito, Financiamento e Investimento S.A. (Aymoré CFI) | Financial | 2,877 | - | 100.00% | 100.00% | |
Banco RCI Brasil S.A. | Bank | 81 | 81 | 39.89% | 39.89% | |
BEN Benefícios e Serviços S.A. (BEN Benefícios) | Other Activities | 90,000 | - | 100.00% | 100.00% | |
Esfera Fidelidade S.A. | Other Activities | 10,001 | - | 100.00% | 100.00% | |
GIRA - Gestão Integrada de Recebíveis do Agronegócio S.A. | Tecnology | 380 | - | 80.00% | 80.00% | |
Rojo Entretenimento S.A. | Other Activities | 7,417 | - | 94.60% | 94.60% | |
Sanb Promotora de Vendas e Cobrança Ltda. | Other Activities | 30,988 | - | 100.00% | 100.00% | |
Sancap Investimentos e Participações S.A. (Sancap) | Holding | 23,538,159 | - | 100.00% | 100.00% | |
Santander Brasil Administradora de Consórcio Ltda. (Santander Brasil Consórcio) | Buying Club | 436,440 | - | 100.00% | 100.00% | |
Santander Brasil Tecnologia S.A. | Tecnology | 45,371 | - | 100.00% | 100.00% | |
Santander Corretora de Câmbio e Valores Mobiliários S.A. | Broker | 14,067,640 | 14,067,640 | 99.99% | 100.00% | |
Santander Corretora de Seguros, Investimentos e Serviços S.A. (Santander Corretora de Seguros) | Other Activities | 7,184 | - | 100.00% | 100.00% | |
Santander Holding Imobiliária S.A. | Holding | 481,196 | - | 100.00% | 100.00% | |
Santander Leasing S.A. Arrendamento Mercantil (Santander Leasing) | Leasing | 164 | - | 100.00% | 100.00% | |
F1RST Tecnologia e Inovação Ltda. | Other Activities | 5,045 | - | 100.00% | 100.00% | |
Paytec Tecnologia em Pagamentos Ltda. | Other Activities | 9,100 | 100.00% | 100.00% | ||
SX Negócios Ltda. | Other Activities | 75,050 | - | 100.00% | 100.00% | |
Controlled by Aymoré CFI | ||||||
Banco PSA | Bank | 105 | - | 0.00% | 50.00% | |
Banco Hyundai Capital Brasil S.A. | Bank | 150,000 | - | 0.00% | 50.00% | |
Controlled by Santander Leasing | ||||||
Banco Bandepe S.A. | Bank | 3,589 | - | 0.00% | 100.00% |
PI Distribuidora de Títulos e Valores Mobiliários S.A. | Leasing | 277 | - | 0.00% | 100.00% | |
Controlled by Sancap | ||||||
Santander Capitalização S.A. | Capitalization | 64,615 | - | 0.00% | 100.00% | |
Evidence Previdência S.A. | Private Pension | 42,819,564 | - | 0.00% | 100.00% | |
Controlled by Santander Holding Imobiliária S.A. | ||||||
Summer Empreendimentos Ltda. | Other Activities | 17,084 | - | 0.00% | 100.00% | |
Controlled by Atual Serviços de Recuperação de Créditos e Meios Digitais S.A. | ||||||
Return Capital Serviços de Recuperação de Créditos S.A. | Collection and Recover of Credit Management | 200 | - | 0.00% | 100.00% | |
Controlled by Paytec Tecnologia em Pagamentos Ltda.. | ||||||
Paytec Logística e Armazém Ltda. | Other Activities | 100 | - | 100.00% | 100.00% | |
Controlled by Return Capital Serviços de Recuperação de Créditos S.A. (current name of Ipanema Empreendimentos e Participações S.A.) | ||||||
Return Gestão de Recursos S.A. (current name of Gestora de Investimentos Ipanema S.A.) | Resources Management | 11 | - | 0.00% | 100.00% | |
Controlled by PI Distribuidora de Títulos e Valores Mobiliários S.A. | ||||||
Toro Corretora de Títulos de Valores Mobiliários Ltda | Broker | 19,140 | - | 0.00% | 60.00% | |
Controlled by Toro Corretora de Títulos de Valores Mobiliários Ltda Toro Investimentos S.A. |
| Broker | 90,400 | - | 0.00% | 100.00% |
Jointly Controlled by Sancap | ||||||
Santander Auto S.A. | Other Activities | 22,452 | - | 0.00% | 50.00% |
Quantity of Shares or Quotas Owned (in Thousands) | 9/30/2021 | |||||
Investments | Activity | Common Shares and Quotas | Preferred Shares | Direct Participation | Participation | |
Jointly Controlled Companies by Banco Santander | ||||||
Estruturadora Brasileira de Projetos S.A. - EBP (EBP) | Other Activities | 5,076 | 1,736 | 11.11% | 11.11% | |
Gestora de Inteligência de Crédito S.A. (Gestora de Crédito) | Credit Bureau | 3,560 | 3,363 | 20.00% | 20.00% | |
Campo Grande Empreendimentos Ltda. | Other Activities | 255 | - | 25.32% | 25.32% | |
Jointly Controlled Companies by Santander Corretora de Seguros | ||||||
Webmotors S.A. | Other Activities | 425,126,827 | - | 0.00% | 70.00% | |
Tecnologia Bancária S.A. (TecBan) | Other Activities | 743,944 | 68,771 | 0.00% | 18.98% | |
PSA Corretora de Seguros e Serviços Ltda. (PSA Corretora de Seguros) | Insurance Broker | 450 | - | 0.00% | 50.00% | |
Hyundai Corretora de Seguros Ltda. (Nota 2.c.j.2) | Insurance Broker | 1,000 | - | 0.00% | 50.00% | |
Jointly Controlled Companies by Webmotors S.A. | ||||||
Loop Gestão de Pátios S.A. (Loop) | Other Activities | 23,243 | - | 0.00% | 51.00% | |
Jointly Controlled Companies by TecBan | ||||||
Tbnet Comércio, Locação e Administração Ltda. (Tbnet) | Other Activities | 542,004 | - | 0.00% | 100.00% | |
Jointly Controlled Companies by Tebnet | ||||||
Tbforte Segurança e Transporte de Valores Ltda. (Tbforte) | Other Activities | 517,505 | - | 0.00% | 100.00% |
Consolidated Investment Funds
· Santander Investment Fund Amazonas Multimarket Private Credit for Investment Abroad (Santander FI Amazonas);
· Santander Investment Fund Diamantina Multimercado Private Credit for Investment Abroad (Santander FI Diamantina);
· Santander Investment Fund Guarujá Multimarket Private Credit for Investment Abroad (Santander FI Guarujá);
· Santander Unix Multimercado Credit Privado Investment Fund (Santander FI Unix);
· Santander Investment Fund SBAC Referenced DI Credit Privado (Santander FI SBAC);
· Santander Paraty QIF PLC (Santander Paraty) (4);
· Sale of Credit Rights Investment Fund Vehicles (Sale of FIDC Vehicles) (1);
· RN Brasil Credit Rights Investment Fund - Vehicle Financing (FI RN Brasil - Vehicle Financing) (2);
· Prime 16 – Real Estate Investment Fund (current denomination of BRL V - Real Estate Investment Fund - FII) (3);
· Santander FI Hedge Strategies Fund (Santander FI Hedge Strategies) (4);
· NPL Ipanema VI Multisegment Credit Rights Investment Fund - Non-Standardized (Ipanema NPL VI Investment Fund) (5);
· Santander Hermes Multimercado Private Credit Infrastructure Investment Fund (6);
· Wholesale Credit Rights Investment Fund – Non-Standardized (7);
· Current - Multimarket Investment Fund for Private Investment abroad (8); and
· Verbena FCVS - Receivables Investment Fund (9).
(1) Renault automaker (an entity not belonging to the Santander Conglomerate) sells its trade bills to the Fund. This Fund exclusively purchases Renault automaker duplicates. In turn, Banco RCI Brasil S.A. holds 100% of its subordinated shares.
(2) Banco RCI Brasil S.A. sells receivables (CDC Portfolio) to FI RN Brasil - Vehicle Financing. Senior shares have only one investor. Banco RCI Brasil S.A. holds 100% of the subordinated shares.
(3) Banco Santander was the creditor of certain overdue credit operations that had real estate as collateral. The operation to recover these credits consists in the contribution of properties as guarantee to the capital of the Real Estate Investment Fund and the consequent transfer of the Fund's shares to Banco Santander, upon payment of the aforementioned credit operations.
(4) Banco Santander, through its subsidiaries, holds the risks and benefits of Santander Paraty and the Subfund Santander FI Hedge Strategies, based in Ireland, and both are fully consolidated in its Individual and Consolidated Condensed Interim Financial Statements. Santander Paraty does not have its own equity position, and all records come from the financial position of Santander FI Hedge Strategies.
(5) Refers to a structure where Banco Santander sold certain credit operations, which had already been transferred to losses (operations overdue for more than 360 days) to this fund. Atual Serviços de Recovery de Créditos e Meios Digitais S.A. (current company name of Atual Companhia Securitizadora de Créditos Financeiros), a company controlled by Banco Santander, holds 100% of the shares in this fund.
(6) This fund was consolidated in December 2018 and is controlled through Aymoré Crédito Financiamento e Investimento Ltda.
(7) This fund started to be consolidated in June 2019 and is controlled through Atual Serviços de Recovery de Credits e Meios Digitais S.A.
(8) This fund started to be consolidated in August 2020 and is controlled through Atual Serviços de Recovery de Créditos e Meios Digitais S.A.
(9) This fund was consolidated in February 2021, controlled by Banco Santander, which holds 100% of the shares in this fund.
b) Composition of Investments
Bank | ||||||||||||
Adjusted Stockholders' Equity | Net Income (Loss) Adjusted | Investments Value | Equity Accounting Results | |||||||||
9/30/2021 | 01/01 to 9/30/2021 | 9/30/2021 | 12/31/2020 | 9/30/2021 | 01/01 to 9/30/2020 | |||||||
Controlled by Banco Santander | ||||||||||||
Santander Leasing | 11,138,867 | 195,823 | 11,138,867 | 4,583,567 | 179,195 | 109,507 | ||||||
Banco Bandepe S.A. | - | - | - | 5,369,488 | 36,530 | 74,526 | ||||||
Santander Brasil EFC | - | - | - | 41,636 | (35,574) | 2,244 | ||||||
Santander Corretora de Seguros | 4,337,705 | 767,808 | 4,342,715 | 3,575,295 | 767,808 | 445,516 | ||||||
Getnet S.A. | - | - | - | 2,071,772 | 56,220 | 209,970 | ||||||
Ágio na Aquisição de Participação Residual da Getnet S.A. | - | - | - | 949,173 | - | - | ||||||
Atual Serviços de Recuperação de Créditos e Meios Digitais S.A. | 2,637,634 | 44,040 | 2,637,634 | 1,740,057 | 62,577 | 58,275 | ||||||
Aymoré CFI | 2,412,032 | 869,761 | 2,412,032 | 1,542,259 | 869,761 | 328,913 | ||||||
Sancap | 989,139 | 231,148 | 989,139 | 1,041,810 | 231,148 | 268,122 | ||||||
Banco Olé Consignado | - | - | - | - | - | 154,380 | ||||||
Bosan S.A | - | - | - | - | - | 95,350 | ||||||
Santander Corretora de Câmbio e Valores Mobiliários (Santander CCVM) | 799,176 | 68,818 | 799,175 | 731,344 | 68,818 | 71,329 | ||||||
Banco RCI Brasil S.A. | 1,668,183 | 120,811 | 665,453 | 560,648 | 48,192 | 55,441 | ||||||
Santander Brasil Consórcio | 925,778 | 248,583 | 925,778 | 677,195 | 248,583 | 175,877 | ||||||
Others | 1,639,098 | 217,797 | 1,584,529 | 1,252,546 | 261,535 | 189,697 | ||||||
Santander Holding Imobiliária S.A. | 384,884 | (263) | 384,884 | - | (263) | - | ||||||
Santander Brasil Tecnologia S.A. | 197,898 | 3,706 | 199,346 | - | 3,706 | - | ||||||
Rojo Entretenimento S.A. | 127,768 | (3,472) | 120,869 | - | (3,285) | - | ||||||
BEN Benefícios | 67,803 | (3,450) | 67,803 | - | (3,450) | - | ||||||
Esfera Fidelidade S.A. | 633,296 | 266,370 | 633,296 | - | 266,370 | - | ||||||
SX Negócios Ltda. | 75,510 | 12,358 | 75,510 | - | 12,358 | - | ||||||
Jointly Controlled Companies Directly and Indirectly by Banco Santander |
| |||||||||||
EBP | 11,310 | (147) | 1,257 | - | (16) | - | ||||||
Gestora de Crédito | 90,164 | (53,236) | 18,033 | - | (10,647) | - | ||||||
Gira - Gestão Integrada de Recebíveis do Agronegócio S.A. | 3,070 | (4,635) | 4,358 | - | (3,804) | - | ||||||
Santander Tecnologia e Inovação Ltda. | 8,372 | (1,727) | 8,372 | - | (1,727) | - | ||||||
SANB Promotora de Vendas e Cobrança Ltda | 20,289 | (133) | 20,289 | - | (133) | - | ||||||
Paytec Tecnologia em Pagamentos Ltda. | 18,734 | 2,426 | 18,181 | - | 2,425 | - | ||||||
Campo Grande Empreendimentos Ltda. | - | - | 255 | - | - | - | ||||||
Others | ||||||||||||
Goodwill Gira | - | - | 8,526 | - | - | - | ||||||
Goodwill Paytec | - | - | 12,902 | - | - | - | ||||||
Goodwill on Acquisition of 100% of Santander Brasil Tecnologia S.A. | - | - | 10,648 | - | - | - | ||||||
Total | 25,495,322 | 24,136,790 | 2,794,792 | 2,239,147 |
Consolidated | ||||||||||||
Adjusted Stockholders' Equity | Net Income (Loss) Adjusted | Investments Value | Equity Accounting Results | |||||||||
9/30/2021 | 01/01 to 9/30/2021 | 9/30/2021 | 12/31/2020 | 9/30/2021 | 01/01 to 9/30/2020 | |||||||
Jointly Controlled Companies Directly and Indirectly by Banco Santander | ||||||||||||
TecBan | 858,566 | 205,646 | 162,956 | 123,924 | 39,032 | 13,709 |
Gestora de Crédito | 90,164 | (53,236) | 18,033 | 28,680 | (10,647) | (13,581) | ||||||
Webmotors S.A. | 278,182 | 42,092 | 194,727 | 146,822 | 29,464 | 26,635 | ||||||
Norchem Holdings | - | - | - | - | - | (33) | ||||||
Norchem Participações | - | - | - | - | - | 333 | ||||||
EBP | 11,310 | (147) | 1,257 | 1,273 | (16) | 16 | ||||||
Santander Auto | 38,257 | 6,674 | 19,128 | 15,775 | 3,337 | (2,356) | ||||||
Hyundai Corretora de Seguros Ltda. | 2,418 | 329 | 1,209 | 1,044 | 165 | 46 | ||||||
PSA Corretora | 973 | (107) | 487 | 767 | (54) | 173 | ||||||
Others | - | - | 255 | 5,266 | (11,975) | - | ||||||
Campo Grande Empreendimentos Ltda. - | - | 255 | 255 | - | - | |||||||
Others | - | - | - | 5,011 | (11,975) | - | ||||||
Total | 398,052 | 323,551 | 49,305 | 24,942 |
c) Corporate Restructuring
During the period ended September 30, 2021 and the year ended December 31, 2020, several corporate movements were implemented in order to reorganize the operations and activities of the entities in accordance with the business plan of Banco Santander (Brasil) SA (“Banco Santander”, “Santander Brasil” or “Company”):
i) Acquisition of Equity Interest in Apê11 Tecnologia e Negócios Imobiliários Ltda.
On September 2, 2021, Santander Holding Imobiliária S.A. (“SHI”) – a wholly owned subsidiary of the Company – celebrated, with the partners of Apê11 Tecnologia e Negócios Imobiliários Ltda. (“Apê11”), certain Share Purchase and Sale Agreement and Investment Agreement, by which, once the transaction is carried out, it will hold 90% of the capital stock of Apê11 (“Transaction”). Apê11 acts as a collaborative marketplace, pioneering the digitization of the purchase journey of houses and apartments. The execution of the Transaction will be subject to the execution of the definitive instruments and the implementation of certain usual conditions in this type of transaction, including the applicable regulatory approvals.
ii) Acquisition of equity interest in Liderança Serviços Especializados em Cobranças Ltda. and Fozcobra Agência de Cobranças Ltda.
On August 4, 2021, Atual Serviços de Recovery de Créditos e Meios Digitais S.A. (“Atual”) – a wholly-owned subsidiary of the Company – celebrated, with the partners of Liderança Serviços Especializados em Cobranças Ltda. (“Liderança”), a certain Agreement for the Assignment of Quotas and Other Covenants, whereby, once the transaction is carried out, it will hold 100% of the share capital of Liderança (“Transaction”). Liderança operates in the area of overdue credit recovery, providing extrajudicial collection services to financial institutions of different sizes, retail networks, telecommunications operators and automakers, among others, and has a subsidiary, Fozcobra Agência de Cobranças Ltda. The execution of the Transaction will be subject to the execution of the definitive instruments and the implementation of certain usual conditions in this type of transaction, including the applicable regulatory and antitrust approvals.
iii) Acquisition of Equity Interest in Solutions 4 Fleet Consultoria Empresarial Ltda.
On July 13, 2021, Aymoré Crédito, Financiamento e Investimento S.A. (“Aymoré”), celebrated with the partners of Solution 4 Fleet Consultoria Empresarial Ltda. (“Solutions4Fleet”), certain Investment Agreement and Share Purchase and Sale Agreement, by which, once the transaction is carried out, Aymoré will hold 80% of the capital stock of Solution4Fleet (“Transaction”). Solution4Fleet specializes in structuring vehicle rental and subscription businesses – long-term rental for individuals. The execution of the Transaction will be subject to the execution of the definitive instruments and the implementation of certain usual conditions in this type of transaction, including the applicable regulatory approvals.
iv) Acquisition of equity interest in Car10 Tecnologia e Informação S.A. and Pag10 Fomento Mercantil Eireli.
On July 13, 2021, Webmotors S.A. (“Webmotors”), celebrated with the partners of Car10 Tecnologia e Informação S.A. (“Car10 Tecnologia”) and Pag10 Fomento Mercantil Eireli. (“Pag10” and, together with Car10 Tecnologia, “Car10”), certain Investment Agreements and Share Purchase and Sale Agreements, under which, once the transaction is carried out, Webmotors will hold approximately 66.7% of the share capital of Car10 Tecnologia, which, in turn, is the sole holder of Pag10 (“Transaction”). Car10 acts as a marketplace that brings together more than 7,000 service providers such as workshops and autocenters; auto body and Paint; and cleaning and sanitizing, as well as emergency assistance and towing. After compliance with the condition’s precedent established in the Investment Agreement for the Purchase and Sale of Shares, the closing of the Transaction was formalized on September 20, 2021.
v) Acquisition of Equity Interest in Monetus Investimentos Ltda. and Monetus Corretora de Seguros Ltda.
On June 15, 2021, Pi Distribuidora de Títulos e Valores Mobiliários SA (“Pi”), Toro Corretora de Títulos e Valores Mobiliários SA (“Toro CTVM”), and Toro Investimentos SA (“Toro Investimentos” and, together, with Toro CTVM, “Toro”) entered into, with the partners of Monetus Investimentos Ltda., and Monetus Corretora de Seguros Ltda. (jointly “Monetus”), investment agreement and other covenants, whereby, once the transaction is carried out, Toro Investimentos will hold 100% of the capital stock of Monetus (“Transaction”). Monetus, originally from Belo Horizonte, carries out its activities through an automated investment application based
on objectives, after considering the client's needs and risk profile, the application automatically creates, executes and tracks a diversified and personalized investment strategy that use the platform to undertake and serve customers in the best way. The execution of the Transaction will be subject to the execution of the definitive instruments and the implementation of certain usual conditions in this type of transaction, including the applicable regulatory approvals.
vi) Acquisition of Equity Interest in Mobills Labs Soluções em Tecnologia Ltda. and Mob Soluções em Tecnologia Ltda.
On June 15, 2021, Pi Distribuidora de Títulos e Valores Mobiliários SA (“Pi”), Toro Corretora de Títulos e Valores Mobiliários SA (“Toro CTVM”), and Toro Investimentos SA (“Toro Investimentos” and, together, with Toro CTVM, “Toro”) entered into, with the partners of Mobills Labs Soluções em Tecnologia Ltda., and Mob Soluções em Tecnologia Ltda (together “Mobills”), an investment agreement and other covenants, by which, once effective In the transaction, Toro Investimentos will hold 100% of the capital stock of Mobills (“Transaction”). Based in Ceará, Mobills has a variety of financial applications that have a large user base, especially related to financial planning. The execution of the Transaction will be subject to the execution of the definitive instruments and the implementation of certain usual conditions in this type of transaction, including the applicable regulatory approvals.
vii) Corporate reorganization Santander Leasing S.A. Arrendamento Mercantil and Banco Bandepe S.A.
On May 11, 2021, Banco Santander (Brasil) SA (“Banco Santander”) and Banco Bandepe SA (“Bandepe”) entered into a Share Purchase Agreement through which Banco Santander acquired the entire interest shareholding held by Bandepe in Santander Leasing SA Arrendamento Mercantil (“Santander Leasing”), which corresponds to 21.42%. In this operation, Banco Santander became the sole shareholder of Santander Leasing. On May 27, 2021, the merger of all the shares of Bandepe by Santander Leasing was resolved, in order to convert Bandepe into a wholly owned subsidiary of Santander Leasing (“Incorporation of Shares”). The Merger of Shares resulted in an increase in the capital stock of Santander Leasing of R$ 5,365,189,080.65 (five billion, three hundred and sixty-five million, one hundred and eighty-nine thousand, eighty reais and sixty-five cents), in reason for the merger of shares issued by Banco Bandepe held by Banco Santander.
viii) Partial spin-off and segregation of Getnet Adquirência e Serviços para Meios de Pagamento S.A.
After the approval of the studies and favorable proposal of the Board of Directors of Santander Brasil, on March 31, 2021, the shareholders of Santander Brasil approved the partial spin-off of Santander Brasil, for the segregation of shares owned by them issued by Getnet Acquirência e Serviços for Meios de Pagamentos SA (“Getnet”), with a version of the split portion for Getnet itself. Upon completion of the spin-off, the shareholders of Santander Brasil became direct shareholders of Getnet in proportion to their participation in the capital of Santander Brasil and the shares and Units of Santander Brasil started to be traded with the right to receive the shares and Units of issue of Getnet.
As a result of the Spin-off, Santander Brasil's share capital was reduced in the total amount of 2,000,000 (two billion reais), without the cancellation of shares, with Santander Brasil's share capital increasing to 57,000,000 (fifty-seven billion reais) to 55,000,000 (fifty-five billion reais).
ix) Signing of an agreement for the Acquisition of Paytec Tecnologia em Pagamentos Ltda. and Paytec Logística e Armazém EIRELI
On December 8, 2020, Banco Santander celebrated, with the partners and owners of Paytec Tecnologia em Pagamentos Ltda. and Paytec Logística and Armazém Eireli (together “Paytec”), a share purchase and sale agreement, transfer of ownership and other covenants, whereby, once the transaction is carried out, it will hold 100% of the share capital of Paytec. Paytec acts as a logistics operator with national coverage and focused on the payments market. After approval of the transaction by the Central Bank of Brazil, the transaction was carried out on March 12, 2021, with Banco Santander now holding 100% of the share capital of the Paytec companies.
x) Dissolution and liquidation of Santander Brasil, Establecimiento Financiero de Credito, S.A.
On November 12, 2020, by decision of its sole partner, the dissolution and liquidation of Santander Brasil, Establecimiento Financiero de Credito, SA (which had its corporate name changed to Santander Brasil, SAU), an offshore entity headquartered in Spain, was approved. fully owned by Banco Santander Brasil, which acted to complement the foreign trade strategy for corporate clients (large Brazilian companies and their operations abroad) and to offer financial products and services. The capital invested abroad was repatriated in November 2020. The company's dissolution and liquidation deed were registered in the Madrid Registry with effect from December 15, 2020. These activities are now carried out by the Bank's branch in Luxembourg.
xi) Disposal of Investments in Norchem Holding e Negócios S.A. and Norchem Participações e Consultoria S.A.
On October 8, 2020, Banco Santander (Brasil) SA withdrew from the shareholder structure of Norchem Participações e Consultoria SA (NPC) and Norchem Holding e Negócios SA (NHN), upon capital reduction in the amounts of R$19,950 million and R$14,770 million, respectively, and consequent cancellation of shares held by Banco Santander (Brasil) S.A.
xii) Acquisition of Equity Interest in Toro Controle
On September 29, 2020, Pi Distribuidora de Títulos e Investimentos SA (“Pi”), which is indirectly controlled by Banco Santander, entered into an investment agreement with the shareholders of Toro Controle e Participações SA (“Toro Controle”) and other covenants. Toro Controle had been a holding company that, ultimately, had controlled Toro Corretora de Títulos e Valores Mobiliários Ltda. (“Toro CTVM”) and Toro Investimentos S.A. (“Toro Investimentos” and, together, “Toro”). Toro is an investment platform founded in Belo Horizonte in 2010. In 2018, it received the necessary authorizations and started its operation as a securities brokerage aimed at the retail public. After compliance with all applicable conditions precedent, including approval by the Central Bank of Brazil, the transaction was carried out on April 30, 2021, with the acquisition of shares representing 60% of the capital stock of Toro Controle and its immediate incorporation by Toro CTVM, so that Pi became the direct holder of the equivalent of 60% of the share capital of Toro CTVM which, in turn, holds 100% of the share capital of Toro Investimentos.
xiii) Signing of an Agreement for the Acquisition of Equity Interest in Gira – Gestão Integrada de Recebíveis do Agronegócio S.A.
On August 11, 2020, Banco Santander signed a share purchase and sale agreement and other agreements with the shareholders of Gira – Integrated Management of Receivables of Agronegócio S.A. Gira is a technology company that operates in the management of agribusiness receivables and has a robust technological platform, capable of adding greater security to agricultural credit operations. Upon compliance with the conditions established in the contract, in particular the applicable regulatory approvals, the parties formalized the definitive instruments on January 8, 2021. With the completion of the transaction, Banco Santander now holds 80% of Gira's share capital.
xiv) Acquisition of direct equity interest in Toque Fale Serviços de Telemarketing Ltda.
On March 24, 2020, the Bank acquired the shares representing the entire share capital of Toque Fale Serviços de Telemarketing Ltda. (“Toque Fale”) for R$1,099 million, corresponding to the book value of the shares on February 29, 2020, previously held by Getnet Acquirência e Serviços para Meios de Pagamento S.A. and Auttar HUT Processamento de Dados Ltda. As a result, the Bank became a direct shareholder of Toque Fale and holder of 100% of its capital.
xv) Disposal of the equity interest held in Super Pagamentos e Administração de Meios Eletrônicos S.A.
On February 28, 2020, the equity interest held in Super Pagamentos e Administração de Meios Eletrônicos SA was sold to Superdigital Holding Company, SL, a company indirectly controlled by Banco Santander, SA, of the shares representing the totality of the share capital of Super Payments and Administration of Meios Eletrônicos SA (“Superdigital”) for the amount of R$270 million. As a result, the Bank is no longer a shareholder of Superdigital.
xvi) Acquisition of Summer Empreendimentos Ltda.
On May 14, 2019, Banco Santander (Brasil) S.A. and its wholly owned subsidiary Santander Holding Imobiliária S.A. (“SHI”) entered into a binding document with the partners of Summer Empreendimentos Ltda. (“Summer”) establishing the terms of the negotiation of purchase and sale of shares representing the entirety of Summer's capital stock. The acquisition was approved by BACEN on September 16, 2019 and concluded on September 20, 2019, so that SHI now holds 99.999% and Banco Santander 0.001% of the shares representing Summer's capital stock. Due to the Entity's short-term sale plan, Summer was initially recorded as a Non-Current Asset Held by Sale, at its cost value. In June 2020, with the non-execution of the established plan, Summer became part of the scope of Banco Santander's Individual and Consolidated Condensed Interim Financial Statements.
xvii) Sale option of interest in Banco Olé Consignado S.A. and merger of Banco Olé Consignado S.A. and Bosan Participações S.A.
On March 14, 2019, the minority shareholder of Banco Olé Consignado SA (“Banco Olé”) formalized its interest in exercising the put option provided for in the Investment Agreement, entered into on July 30, 2014, for the sale of its interest in 40% in the share capital of Olé Consigned to Banco Santander (Brasil) SA (“Banco Santander”).
On December 20, 2019, the parties entered into a binding agreement for the acquisition, by Banco Santander, of all shares issued by Bosan Participações SA (holding whose only asset are shares representing 40% of Banco Olé's share capital), for the amount total of R$1.6 billion (“Transaction”), to be paid on the closing date of the Transaction.
On January 31, 2020, the Bank and the shareholders of Bosan Participações SA (“Bosan”) concluded the definitive agreement and signed the purchase and sale agreement for 100% of the shares issued by Bosan, through the transfer of Bosan's shares to Bank and payment to sellers in the total amount of R$1,608,772. As a result, Banco Santander became, directly and indirectly, the holder of 100% of the shares of Banco Olé.
On August 31, 2020, Banco Santander shareholders approved the merger by the Bank of Banco Olé Consignado S.A. and Bosan Participações S.A. The mergers did not result in an increase in the share capital of Santander Brasil.
14. Fixed Assets
Bank | ||||||||
9/30/2021 | 12/31/2020 | |||||||
Cost | Depreciation | Net | Net | |||||
Real Estate | 2,465,280 | (905,014) | 1,560,266 | 1,595,073 | ||||
Land | 641,512 | - | 641,512 | 640,650 | ||||
Buildings | 1,823,768 | (905,014) | 918,754 | 954,423 | ||||
Others Fixed Assets | 12,882,929 | (8,584,592) | 4,298,337 | 4,507,465 | ||||
Installations, Furniture and Equipment | 5,057,410 | (3,172,076) | 1,885,334 | 1,999,855 | ||||
Data Processing Equipment | 2,340,681 | (1,500,022) | 840,659 | 926,251 | ||||
Leasehold Improvements | 4,406,322 | (3,140,118) | 1,266,204 | 1,359,694 | ||||
Security and Communication Equipment | 773,747 | (522,969) | 250,778 | 171,178 | ||||
Others | 304,769 | (249,407) | 55,362 | 50,486 | ||||
Total | 15,348,209 | (9,489,606) | 5,858,603 | 6,102,538 | ||||
| ||||||||
Consolidated | ||||||||
9/30/2021 | 12/31/2020 | |||||||
Cost | Depreciation | Net | Net | |||||
Real Estate | 2,755,003 | (967,427) | 1,787,576 | 1,841,529 | ||||
Land | 713,299 | - | 713,299 | 715,969 | ||||
Buildings | 2,041,704 | (967,427) | 1,074,277 | 1,125,560 | ||||
Others Fixed Assets | 13,105,172 | (8,716,946) | 4,388,226 | 5,205,157 | ||||
Installations, Furniture and Equipment | 5,084,445 | (3,197,193) | 1,887,252 | 2,088,388 | ||||
Data Processing Equipment | 2,398,250 | (1,537,364) | 860,886 | 1,054,923 | ||||
Leasehold Improvements | 4,513,313 | (3,204,567) | 1,308,746 | 1,398,841 | ||||
Security and Communication Equipment | 777,753 | (526,286) | 251,467 | 586,394 | ||||
Others | 331,411 | (251,536) | 79,875 | 76,610 | ||||
Total | 15,860,175 | (9,684,373) | 6,175,802 | 7,046,686 |
15. Intangibles
Bank | ||||||||
9/30/2021 | 12/31/2020 | |||||||
Cost | Amortization | Net | Net | |||||
Goodwill on Acquired Companies | 27,220,515 | (26,468,090) | 752,425 | 1,876,197 | ||||
Other Intangible Assets | 10,155,162 | (6,043,733) | 4,111,429 | 4,220,582 | ||||
Acquisition and Development of Software | 6,185,095 | (3,822,816) | 2,362,279 | 2,100,607 | ||||
Exclusivity Contracts for Provision of Banking Services | 3,796,689 | (2,126,003) | 1,670,686 | 1,964,771 | ||||
Others | 173,378 | (94,914) | 78,464 | 155,203 | ||||
Total | 37,375,677 | (32,511,823) | 4,863,854 | 6,096,779 | ||||
Consolidated | ||||||||
9/30/2021 | 12/31/2020 | |||||||
Cost | Amortization | Net | Net | |||||
Goodwill on Acquired Companies | 27,886,642 | (26,665,151) | 1,221,491 | 2,018,698 | ||||
Other Intangible Assets | 10,455,976 | (6,262,014) | 4,193,962 | 4,452,919 | ||||
Acquisition and Development of Software | 6,472,556 | (4,012,640) | 2,459,916 | 2,313,156 | ||||
Exclusivity Contracts for Provision of Banking Services | 3,796,689 | (2,126,003) | 1,670,686 | 1,964,771 | ||||
Others | 186,731 | (123,371) | 63,360 | 174,992 | ||||
Total | 38,342,618 | (32,927,165) | 5,415,453 | 6,471,617 |
(*) For the period ended September 30, 2021, there was no impairment.
16. Funding
a) Opening of Equity Accounts
Debt Securities in Issue | - | 4,646 | - | - | 4,646 | 824 | ||||||
Others | - | 14,283,268 | 40,133 | 5,386 | 14,328,787 | 10,794,096 | ||||||
Third Parties | - | 12,053,217 | - | - | 12,053,217 | 6,283,007 | ||||||
Linked to Trading Portfolio Operations | - | - | 8,683,957 | 19,401,382 | 28,085,339 | 52,000,730 | ||||||
Funds from Acceptance and Issuance of Securities | - | 5,112,730 | 23,881,241 | 77,277,737 | 106,271,708 | 87,059,806 | ||||||
Exchange Acceptance Resources | - | - | - | - | - | 101,493 | ||||||
Real Estate Credit Notes, Mortgage Notes, Credit and Similar Notes | - | 4,909,274 | 15,536,277 | 43,631,514 | 64,077,065 | 54,340,629 | ||||||
Real Estate Credit Notes - LCI (1) | - | 1,707,428 | 5,594,546 | 17,793,483 | 25,095,457 | 25,710,531 | ||||||
Agribusiness Credit Notes - LCA | - | 1,458,609 | 5,690,748 | 7,901,714 | 15,051,071 | 14,746,831 | ||||||
Treasury Bills - LF (2) | - | 1,534,228 | 3,622,580 | 16,728,232 | 21,885,040 | 12,749,911 | ||||||
Guaranteed Real Estate Credit Notes - LIG (3) | - | 209,009 | 628,403 | 1,208,085 | 2,045,497 | 1,133,356 | ||||||
Securities Issued Abroad | - | - | 7,413,071 | 31,621,368 | 39,034,439 | 30,233,240 | ||||||
Funding by Structured Operations Certificates | - | 203,456 | 931,893 | 2,024,855 | 3,160,204 | 2,384,444 | ||||||
Borrowings and Onlendings | - | 27,812,372 | 44,994,172 | 11,814,047 | 86,620,591 | 67,720,151 | ||||||
Foreign Borrowings | - | 25,573,297 | 44,952,174 | 4,456,592 | 74,982,063 | 54,971,763 | ||||||
Import and Export Financing Lines | - | 16,534,750 | 27,929,716 | 414,194 | 44,878,660 | 54,971,763 | ||||||
Other Credit Lines | - | 9,038,547 | 17,022,458 | 4,042,398 | 30,103,403 | - | ||||||
Domestic Onlendings | - | 2,239,075 | 2,041,998 | 7,357,455 | 11,638,528 | 12,748,388 | ||||||
Total | 104,134,345 | 237,643,099 | 171,625,889 | 212,410,671 | 725,814,004 | 707,222,897 |
Consolidated | ||||||||||||
9/30/2021 | 12/31/2020 | |||||||||||
Without Maturity | Up to 3 Months | From 3 to 12 Months | Over 12 Months | Total | Total | |||||||
Deposits | 103,692,414 | 100,471,963 | 89,117,056 | 104,545,367 | 397,826,800 | 390,051,798 | ||||||
Demand Deposits | 38,397,534 | - | - | - | 38,397,534 | 41,821,289 | ||||||
Savings Deposits | 65,225,736 | - | - | - | 65,225,736 | 63,306,504 | ||||||
Interbank Deposits | - | 1,356,270 | 3,166,164 | 900,836 | 5,423,270 | 5,145,425 | ||||||
Time Deposits (1) | 69,144 | 99,115,693 | 85,950,892 | 103,644,531 | 288,780,260 | 279,778,578 | ||||||
Other Deposits | - | - | - | - | - | 2 | ||||||
Money Market Funding | - | 100,468,820 | 9,108,134 | 19,406,768 | 128,983,722 | 154,997,017 | ||||||
Own Portfolio | - | 88,415,604 | 424,177 | 5,386 | 88,845,167 | 96,713,280 | ||||||
Government Securities | - | 74,127,525 | 384,044 | - | 74,511,569 | 85,918,360 | ||||||
Debt Securities in Issue | - | 300 | - | - | 300 | 824 | ||||||
Others | - | 14,287,779 | 40,133 | 5,386 | 14,333,298 | 10,794,096 | ||||||
Third Parties | - | 12,053,216 | - | - | 12,053,216 | 6,283,007 | ||||||
Linked to Trading Portfolio Operations | - | - | 8,683,957 | 19,401,382 | 28,085,339 | 52,000,730 | ||||||
Funds from Acceptance and Issuance of Securities | - | 5,244,076 | 17,834,968 | 58,811,919 | 81,890,963 | 70,627,767 | ||||||
Exchange Acceptances | - | 131,345 | 258,527 | 927,865 | 1,317,737 | 1,175,794 | ||||||
Real Estate Credit Notes, Mortgage Notes, Credit and Similar Notes | - | 4,909,275 | 16,312,625 | 46,429,160 | 67,651,060 | 57,668,252 | ||||||
Real Estate Credit Notes - LCI (1) | - | 1,707,428 | 5,594,546 | 17,793,483 | 25,095,457 | 25,710,531 | ||||||
Agribusiness Credit Notes - LCA | - | 1,458,609 | 5,690,748 | 7,901,714 | 15,051,071 | 14,746,831 | ||||||
Treasury Bills - LF (2) | - | 1,534,229 | 4,398,928 | 19,525,878 | 25,459,035 | 16,077,534 | ||||||
Guaranteed Real Estate Credit Notes - LIG (3) | - | 209,009 | 628,403 | 1,208,085 | 2,045,497 | 1,133,356 | ||||||
Securities Issued Abroad | - | - | 331,923 | 9,430,038 | 9,761,961 | 9,399,277 | ||||||
Funding by Structured Operations Certificates | - | 203,456 | 931,893 | 2,024,856 | 3,160,205 | 2,384,444 | ||||||
Borrowings and Onlendings | - | 27,812,372 | 46,996,027 | 11,814,047 | 86,622,446 | 67,759,950 | ||||||
Domestic Borrowings | - | - | 1,855 | - | 1,855 | 39,799 | ||||||
Foreign Borrowings | - | 25,573,297 | 44,952,174 | 4,456,592 | 74,982,063 | 54,971,763 | ||||||
Import and Export Financing Lines | - | 16,534,750 | 27,929,716 | 414,194 | 44,878,660 | 54,971,763 | ||||||
Other Credit Lines | - | 9,038,547 | 17,022,458 | 4,042,398 | 30,103,403 | - | ||||||
Domestic Onlendings | - | 2,239,076 | 2,041,998 | 7,357,454 | 11,638,528 | 12,748,388 | ||||||
Total | 103,692,414 | 233,997,231 | 163,056,185 | 194,578,101 | 695,323,931 | 683,436,532 |
(1) Consider the maturities established in the respective investments, with the possibility of immediate withdrawal, in advance of its maturity.
(2) Real estate credit bills are fixed-income securities backed by real estate credits and guaranteed by mortgage or fiduciary sale of real estate. As of September 30, 2021, the maturity dates range between 2021 and 2027.
(3) The main characteristics of the financial bills are a minimum term of two years, a minimum face value of R$50 and an early redemption permit of only 5% of the issued amount. As of September 30, 2021, the maturity dates range between 2021 and 2026.
(4) Guaranteed Real Estate Bills are fixed-income securities backed by real estate credits guaranteed by the issuer and by a pool of real estate credits separated from the other assets of the issuer. On September 30, 2021, they have a maturity period between 2021 and 2035 (12/31/2020 - with a maturity period between 2021 and 2023).
(5) Funding made under the Special Compulsory Liquidity line pursuant to Resolution 4,795/20.
In the Bank and in the Consolidated, the export and import financing lines are funds raised from financial institutions abroad, intended for investment in commercial exchange operations, related to the discount of export bills and pre-financing to export and import,
whose maturities go up to the year 2031 (12/31/2020 - until the year 2024) and are subject to financial charges, corresponding to the exchange rate variation plus interest ranging from 0.42% to 5.7% pa (12/31/2020 - from 0.35% pa to 4.3% pa).
Obligations for onlendings from the country - official institutions are subject to financial charges corresponding to the TJLP, exchange variation of the BNDES currency basket or the exchange variation of the US dollar, plus interest, in accordance with the operational policies of the BNDES System.
Bank | Consolidated | |||||||
Eurobonds | Issuance | Maturity | Currency | Interest Rate (p.a) | 9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 |
Eurobonds | 2017 | 2021 | BRL | 4.4% | - | 14,469 | - | 14,469 |
Eurobonds | 2017 | 2021 | USD | 4.4% | 10,615 | - | - | - |
Eurobonds | 2017 | 2024 | USD | 2.4% to 10.0% | - | 857,678 | - | 853,929 |
Eurobonds | 2018 | 2024 | USD | 6.6% to 6.7% | - | 1,625,192 | - | 1,625,192 |
Eurobonds | 2018 | 2025 | USD | Until 9% | 226,609 | 1,841,240 | 112,999 | 1,720,186 |
Eurobonds | 2019 | 2021 | USD | 0% to 4,4% | 58,102 | - | - | - |
Eurobonds | 2019 | 2022 | USD | 0% to 4,4% | 286,857 | - | - | - |
Eurobonds | 2019 | 2022 | USD | CDI+6,4% | 3,066 | - | - | - |
Eurobonds | 2019 | 2023 | USD | 4.4% | 125,147 | - | - | - |
Eurobonds | 2019 | 2023 | USD | CDI+6,4% | 36,378 | - | - | - |
Eurobonds | 2019 | 2024 | USD | 0% to 4,4% | 1,487,643 | - | - | - |
Eurobonds | 2019 | 2024 | USD | CDI+6,4% | 1,187,059 | - | - | - |
Eurobonds | 2019 | 2025 | USD | 0% to 4,4% | 346,406 | - | 218,245 | - |
Eurobonds | 2019 | 2025 | USD | CDI+6,4% | 24,565 | - | - | - |
Eurobonds | 2019 | 2026 | USD | 4.4% | 348,380 | - | 75,451 | - |
Eurobonds | 2019 | 2026 | USD | 0% to 4,4% | 21,877 | - | - | - |
Eurobonds | 2019 | 2027 | USD | 4.4% | 671,899 | - | 660,447 | - |
Eurobonds | 2019 | 2027 | USD | CDI + 6,4% | - | 6,513,222 | - | 1,279,507 |
Eurobonds | 2020 | 2021 | USD | 0% to 4,4% | 1,063,179 | 10,061,315 | 477,528 | 3,252,485 |
Eurobonds | 2020 | 2021 | USD | CDI + 1,9% | 77,038 | 170,257 | - | 170,257 |
Eurobonds | 2020 | 2022 | USD | 0% to 4,4% | 2,569,118 | 4,800,393 | 300,715 | 16,923 |
Eurobonds | 2020 | 2022 | USD | CDI + 1,9% | 123,150 | 121,925 | - | 121,925 |
Eurobonds | 2020 | 2023 | USD | 0% to 8% | - | 1,527,334 | - | 22,887 |
Eurobonds | 2020 | 2023 | USD | 0% to 4,4% | 1,271,511 | - | 447,525 | - |
Eurobonds | 2020 | 2023 | USD | CDI + 1,9% | 227,429 | 223,435 | - | 223,435 |
Eurobonds | 2020 | 2024 | USD | 0% to 4,4% | 661,363 | - | - | - |
Eurobonds | 2020 | 2024 | USD | CDI + 1,9% | 134,329 | 2,476,780 | - | 98,082 |
Eurobonds | 2020 | 2025 | USD | 0% to 4,4% | 1,239,443 | - | 45,470 | - |
Eurobonds | 2020 | 2026 | USD | 0% to 4,4% | 25,164 | - | - | - |
Eurobonds | 2020 | 2027 | USD | 0% to 4,4% | 19,615 | - | - | - |
Eurobonds | 2021 | 2021 | USD | 0% to 4,4% | 1,448,040 | - | 1,170,853 | - |
Eurobonds | 2021 | 2021 | USD | CDI + 2,65% | 38,129 | - | - | - |
Eurobonds | 2021 | 2022 | USD | 0% to 4,4% | 2,008,333 | - | 1,422,111 | - |
Eurobonds | 2021 | 2022 | USD | Até 9% | 680,085 | - | - | |
Eurobonds | 2021 | 2022 | USD | CDI + 2,65% | 585,459 | - | 333,676 | - |
Eurobonds | 2021 | 2023 | USD | 0% to 4,4% | 1,312,159 | - | 181,139 | - |
Eurobonds | 2021 | 2023 | USD | CDI + 2,65% | 421,794 | - | - | - |
Eurobonds | 2021 | 2023 | USD | Until 9% | 562,845 | - | 336,968 | - |
Eurobonds | 2021 | 2024 | USD | 0% to 4,4% | 2,564,329 | - | 65,299 | - |
Eurobonds | 2021 | 2024 | USD | Until 9% | 762,574 | - | - | |
Eurobonds | 2021 | 2024 | USD | CDI + 2,65% | 813,446 | - | - | - |
Eurobonds | 2021 | 2025 | USD | 0% to 4,4% | 863,572 | - | - | - |
Eurobonds | 2021 | 2025 | USD | Until 9% | 1,004,341 | - | - | - |
Eurobonds | 2021 | 2025 | USD | CDI + 2,65% | 197,971 | - | - | - |
Eurobonds | 2021 | 2026 | USD | 0% to 4,4% | 7,338,102 | - | 2,319,764 | - |
Eurobonds | 2021 | 2026 | USD | Until 9% | 2,411,623 | - | 1,668,261 | - |
Eurobonds | 2021 | 2026 | USD | CDI + 2,65% | 578,867 | - | - | - |
Eurobonds | 2021 | 2027 | USD | 0% to 4,4% | 308,798 | - | - | - |
Eurobonds | 2021 | 2028 | USD | 0% to 4,4% | 317,502 | - | - | - |
Eurobonds | 2021 | 2028 | USD | Until 9% | 26,016 | - | - | - |
Eurobonds | 2021 | 2031 | USD | 0% to 4.4% | 2,214,924 | - | 2,214,924 | - |
Eurobonds | 2021 | 2028 | USD | CDI + 6.4% | 329,587 | - | 329,587 | - |
Total |
|
|
|
| 39,034,438 | 30,233,240 | 12,380,962 | 9,399,277 |
b) Opening profit and loss accounts
Bank | Consolidated | |||||||
| 01/01 to 9/30/2021 |
| 01/01 to 9/30/2020 |
| 01/01 to 9/30/2021 | 07/01 to 9/30/2020 | 01/01 to 9/30/2020 | |
Time Deposits (1) (2) | 5,616,883 | 7,600,422 | 2,271,273 | 11,115,742 | 5,036,473 | 7,826,121 | 2,554,234 | 11,854,151 |
Savings Deposits | 557,376 | 1,260,320 | 299,101 | 1,093,765 | 557,376 | 1,260,320 | 299,101 | 1,093,765 |
Interbank Deposits | 66,414 | 137,214 | 34,548 | 135,468 | 71,997 | 147,612 | 52,383 | 177,558 |
Money Market Funding | 1,360,778 | 3,117,631 | 985,996 | 5,264,892 | 1,323,157 | 3,004,801 | 909,536 | 5,122,401 |
Upgrade and Provisions Interest and | - | - | - | - | 47,115 | 136,148 | 36,518 | 103,121 |
Acceptance and Issuance of Securities | - | - | - | - | - | - | 1,370,960 | 27,457,838 |
Others (3) | 9,753,381 | 9,448,063 | 2,984,784 | 29,584,970 | 9,819,635 | 9,588,914 | 1,640,704 | 2,248,460 |
Total | 17,354,832 | 21,563,650 | 6,575,702 | 47,194,837 | 16,855,753 | 21,963,916 | 6,863,436 | 48,057,294 |
(1) In the Bank and in the Consolidated, includes the recording of interest in the amount of R$658,163 (2020 - R$697,465), referring to the issuance of an Eligible Debt Instrument for Tier I and II Capital (Note 17).
(2) Includes exchange variation expense in the amount of R$1,432,382 in the Bank and in the Consolidated (2020 - exchange variation expense in the amount of R$2,994,329 in the Bank and in the Consolidated).
(3) As of September 30, 2021, includes exchange variation income in the amount of R$1,493,123 in the Bank and in the Consolidated (2020 – Exchange variation expense in the amount of R$7,593,239).
17. Other Financial Liabilities
a) Composition
Bank | |||||||
9/30/2021 | 12/31/2020 | ||||||
Total | Total | ||||||
Foreign Exchange Portfolio | 50,862,431 | 84,875,959 | |||||
Trading and Intermediation of Values | 248,825 | 315,940 | |||||
Debt Instruments Eligible to Compose Capital | 13,957,208 | 13,119,660 | |||||
Collected Taxes and Other | 2,958,331 | 94,975 | |||||
Third-Party Funds in Transit | 2,520,434 | 25,223 | |||||
Receipts and Payments Pending Settlement | 4,641,689 | 4,831,517 | |||||
Total | 75,188,918 | 103,263,274 |
Consolidated | |||||||
9/30/2021 | 12/31/2020 | ||||||
Total | Total | ||||||
Foreign Exchange Portfolio | 50,862,431 | 84,875,959 | |||||
Trading and Intermediation of Values | 8,547,740 | 3,993,631 | |||||
Debt Instruments Eligible to Compose Capital | 13,957,208 | 13,119,660 | |||||
Collected Taxes and Other | 3,009,978 | 97,453 | |||||
Third-Party Funds in Transit | 2,520,434 | 435,173 | |||||
Receipts and Payments Pending Settlement | 4,641,689 | 4,831,517 | |||||
Total | 83,539,480 | 107,353,393 |
b) Debt Instruments Eligible to Capital
The details of the balance of the item Debt Instruments Eligible to Capital referring to the issuance of equity instruments to compose Level I and Level II of the PR due to the Capital Optimization Plan, are as follows:
Bank/Consolidated | ||||||||||||
9/30/2021 | 12/31/2020 |
Debt Instruments Eligible to Compose Capital | Issuance | Maturity | Amount (Million) | Interest Rate (p.a.) (1) | Total | Total | ||||||
Tier I (2) | November - 18 | No Maturity (Perpetual) | $1,250 | 7.25% | 6,993,690 | 6,554,451 | ||||||
Tier II (2) | November - 18 | November - 28 | $1,250 | 6.13% | 6,963,518 | 6,565,209 | ||||||
Total | 13,957,208 | 13,119,660 |
(1) Interest paid semiannually, as of May 8, 2020.
(2) Issues were made through the Cayman Branch and there is no Withholding Income Tax.
Notes have the following common characteristics:
(a) Unit value of at least US$150 thousand and in integral multiples of US$1 thousand which exceeds such minimum value;
(b) The Notes may be repurchased or redeemed by Banco Santander after the 5th (fifth) anniversary from the date of issue of the Notes, at the Bank's sole discretion or due to changes in the tax legislation applicable to the Notes; or at any time, due to the occurrence of certain regulatory events.
18. Other Payables – Other
Bank | Consolidated | ||||||
9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | ||||
Provision Technical for Capitalization Operations | - | - | 3,583,516 | 3,178,674 | |||
Payables for Credit Cards | 34,766,384 | 31,177,114 | 34,970,544 | 44,825,229 | |||
Provision for Tax Risks and Legal Obligations (Note 19.b) (2) | 4,281,602 | 4,249,744 | 6,694,797 | 6,707,293 | |||
Provision for Legal and Administrative Proceedings - | 5,264,045 | 5,921,882 | 5,578,652 | 6,342,280 | |||
Provision for Financial Guarantees | 338,418 | - | 338,418 | 255,179 | |||
Employee Benefit Plans | 3,116,601 | 3,887,144 | 3,144,890 | 3,929,265 | |||
Payables for Acquisition of Assets and Rights | 22,115 | 28,538 | 22,115 | 28,538 | |||
Reserve for Legal and Administrative Proceedings - Responsibility of | 496 | 496 | 496 | 496 | |||
Accrued Liabilities | |||||||
Personnel Expenses | 1,730,969 | 1,718,919 | 1,952,145 | 1,990,309 | |||
Administrative Expenses | 518,476 | 407,652 | 619,629 | 588,276 | |||
Others Payments | 64,917 | 33,120 | 338,438 | 504,451 | |||
Creditors for Unreleased Funds | 1,989,391 | 2,356,760 | 1,989,391 | 2,356,760 | |||
Provision of Payment Services | 560,587 | 637,907 | 560,587 | 637,907 | |||
Suppliers | 614,860 | 571,880 | 1,044,489 | 958,713 | |||
Social and Statutory | 386,231 | 1,502,039 | 409,721 | 1,589,096 | |||
Others (1) | 6,650,724 | 7,232,564 | 12,581,125 | 13,651,559 | |||
Total | 60,305,816 | 59,725,759 | 73,828,952 | 87,544,024 |
(1) Includes impacts of the exchange variation referring to Notes.
a) Provision for Financial Guarantees Provided
The classification of operations involving guarantees provided for the constitution of provisions is based on the estimate of the risk involved. It results from the process of evaluating the quality of customers and operations, by a statistical model based on quantitative and qualitative information or by a specialized credit analyst, who allows them to be classified according to their probability of default, based on objective internal and market variables (bureaus), previously identified as predictors of the probability of default. After this assessment, operations are classified according to provisioning ratings, based on CMN Resolution No. 2682/1999. Through this analysis, the provision amounts to cover each operation are recorded, considering the type of guarantee provided, as required by CMN Resolution No. 4,512/2016.
Bank/Consolidated | ||||||||
9/30/2021 | 12/31/2020 | |||||||
Type of Financial Guarantee | Balance Guarantees Provided | Provision | Balance Guarantees Provided | Provision | ||||
Linked to International Merchandise Trade | 3,756,197 | 22,522 | 1,813,620 | 4,121 | ||||
Linked to Bids, Auctions, Provision of Services or Execution of Works | 6,914,436 | 12,469 | 5,602,995 | 5,403 | ||||
Linked to the Supply of Goods | 1,993,712 | 2,558 | 1,361,792 | 1,846 | ||||
Guarantee in Legal and Administrative Proceedings of Fiscal Nature | 11,817,968 | 243,888 | 12,082,480 | 175,443 | ||||
Other Guarantees | 2,679,002 | 1,849 | 335,281 | 1,689 | ||||
Other Bank Guarantees | 18,788,348 | 41,724 | 16,532,462 | 33,055 | ||||
Other Financial Guarantees | 4,099,444 | 13,407 | 5,047,032 | 33,622 | ||||
Total | 50,049,107 | 338,417 | 42,775,662 | 255,179 |
Changes in Allowances for Financial Guarantees
Bank/Consolidated |
07/01 to 9/30/2021 | 01/01 a 9/30/2021 | 07/01 to 9/30/2020 | 01/01 to 9/30/2020 | |||||
Balance at Beginning | 324,067 | 255,179 | 178,469 | 166,105 | ||||
Constitution (Note 26) | 28,933 | 103,652 | 7,844 | 33,793 | ||||
Reversal (1) (Note 26) | (14,583) | (20,414) | (3,062) | (16,647) | ||||
Balance at End | 338,417 | 338,417 | 183,251 | 183,251 |
(1) Corresponds to the honored bond, change in rating and provision recorded in the allowance for doubtful accounts.
19. Provisions, Contingent Assets and Liabilities and Legal Obligations - Tax and Social Security
a) Contingent Assets
In the Bank and in the Consolidated, on September 30, 2021 and December 31, 2020, no contingent assets were recognized.
b) Balance Sheet of Provisions for Judicial and Administrative Proceedings and Legal Obligations by Nature
Bank | Consolidated | |||||||
9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | |||||
Reserve for Tax Contingencies and Legal Obligations (Note 18) | 4,281,603 | 4,249,744 | 6,694,796 | 6,707,293 | ||||
Accrual for Legal and Administrative Proceedings - Labor and Civil (Note 18) | 5,264,045 | 5,921,882 | 5,578,652 | 6,342,280 | ||||
Labor | 2,436,159 | 2,656,098 | 2,608,016 | 2,900,835 | ||||
Civil | 2,827,886 | 3,265,784 | 2,970,636 | 3,441,445 | ||||
Total | 9,545,648 | 10,171,626 | 12,273,448 | 13,049,573 |
c) Change in Accrual for Judicial and Administrative Proceedings and Legal Obligations
Bank | ||||||||||||
01/01 to | 01/01 to | |||||||||||
Tax | Labor | Civil | Tax | Labor | Civil | |||||||
Balance at Beginning | 4,249,744 | 2,656,098 | 3,265,784 | 4,346,769 | 3,216,008 | 2,963,877 | ||||||
Recognition Net of Reversal (1) | 63,539 | 764,512 | 204,473 | (199,760) | 719,819 | 463,488 | ||||||
Inflation Adjustment | 63,958 | 64,546 | 261,302 | 73,518 | 13,480 | 161,062 | ||||||
Write-offs Due to Payment | (95,639) | (1,048,997) | (903,673) | (33,285) | (996,411) | (350,049) | ||||||
Balance at End | 4,281,602 | 2,436,159 | 2,827,886 | 4,187,242 | 2,952,896 | 3,238,378 | ||||||
Escrow Deposits - Other Receivables | 1,385,995 | 776,438 | 687,128 | 1,549,160 | 1,099,381 | 720,320 | ||||||
Escrow Deposits - Securities | 3,078 | 3,796 | 1,311 | 5,079 | 18,504 | 16,747 | ||||||
Total Escrow Deposits (2) | 1,389,073 | 780,234 | 688,439 | 1,554,239 | 1,117,885 | 737,067 | ||||||
Consolidated | ||||||||||||
01/01 to | 01/01 to | |||||||||||
Tax | Labor | Civil | Tax | Labor | Civil | |||||||
Balance at Beginning | 6,707,293 | 2,900,835 | 3,441,445 | 6,630,722 | 3,517,431 | 3,222,557 | ||||||
Recognition Net of Reversal (1) | 95,683 | 783,688 | 318,563 | (203,992) | 756,160 | 570,942 | ||||||
Inflation Adjustment | 96,426 | 71,425 | 265,403 | 106,720 | 16,370 | 163,409 | ||||||
Write-offs Due to Payment | (204,605) | (1,147,932) | (1,054,775) | (44,460) | (1,088,017) | (532,717) | ||||||
Balance at End | 6,694,797 | 2,608,016 | 2,970,636 | 6,488,990 | 3,201,944 | 3,424,191 | ||||||
Escrow Deposits - Other Receivables | 2,610,286 | 836,842 | 698,355 | 2,636,886 | 1,195,465 | 728,367 | ||||||
Escrow Deposits - Securities | 4,037 | 3,796 | 1,311 | 5,916 | 18,504 | 16,747 | ||||||
Total Escrow Deposits (2) | 2,614,323 | 840,638 | 699,666 | 2,642,802 | 1,213,969 | 745,114 |
(1) Tax risks include the constitution of provisions for taxes related to legal and administrative proceedings and legal obligations, recorded in other operating income and other operating expenses and IR and CSLL.
(2) Refer to escrow deposit amounts, limited to the amount of the provision and do not include escrow deposits related to possible and/or remote contingencies and appeal deposits.
d) Tax and Social Security, Labor and Civil Provisions
Banco Santander and its subsidiaries are parties to legal and administrative proceedings of a tax, social security, labor and civil nature, arising from the normal course of their activities.
Provisions were set up based on the nature, complexity and history of the actions and on the assessment of loss of the companies' shares based on the opinions of internal and external legal advisors. Banco Santander has a policy of fully provisioning the value at risk of actions whose assessment is probable loss. Legal obligations of a tax and social security nature are fully recognized in the financial statements.
Management understands that the provisions made are sufficient to meet legal obligations and any losses arising from legal and administrative proceedings as follows:
d.1) Lawsuits and Administrative Proceedings related to Tax and Social Security
Main lawsuits and administrative proceedings related to legal obligations, tax and social security
PIS and COFINS - R$1,957,420 in the Bank and R$4,056,671 in the Consolidated (12/31/2020 - R$1,934,120 in the Bank and R$4,008,137 in the Consolidated): Banco Santander and its subsidiaries filed legal measures to remove the application of Law No. 9,718/1998, which modified the calculation basis of PIS and COFINS so that they were levied on all corporate income and not only on those arising from the provision of services and sale of goods. Regarding the Banco Santander lawsuit, on April 23, 2015, a decision of the Federal Supreme Court (STF) was published, admitting the Extraordinary Appeal filed by the Union regarding the PIS and denying the continuation of the Extraordinary Appeal of the Federal Public Ministry regarding the COFINS. Both appealed this decision, without any success, so that the claim referring to COFINS is defined, prevailing the decision of the Regional Federal Court of the 4th Region of August 2007, favorable to Banco Santander. The PIS of Banco Santander is still pending a final judgment by the STF, as well as the enforceability of the PIS and COFINS of the other subsidiaries.
CSLL Rate Increase – R$115,974 in the Consolidated (12/31/2020 - R$114,449 in the Consolidated): Banco Santander and its subsidiaries filed lawsuits seeking to rule out the increase in the CSLL rate imposed by MP 413/ 2008, converted into Law No. 11.727/2008. Financial institutions were previously subject to the 9% rate for CSLL, however, the new legislation established the rate of 15%, as of April 2008. In 2018, in view of the success rating and the unfavorable scenario in the Courts, we opted for the payment of the amounts discussed, except for the company Renault do Brasil Credit, Financing and Investment Company (RCI), which is still awaiting judgment.
Main legal and administrative proceedings with probable risk of loss
Banco Santander and its subsidiaries are parties to legal and administrative proceedings related to tax and social security disputes, which are classified, based on the opinion of legal advisors, as a probable risk of loss.
Provisional Contribution on Financial Transactions (CPMF) in Customer Operations - R$936,954 (12/31/2020 - R$924,457) in the Bank and Consolidated: in May 2003, the Federal Revenue Service of Brazil issued a tax assessment notice at Santander Distribuidora of Bonds and Securities Ltd. (Santander DTVM) and another notice at Banco Santander (Brasil) SA The object of the case was the collection of CPMF on transactions carried out by Santander DTVM in the management of its customers' funds and clearing services provided by the Bank to Santander DTVM, which occurred during the years 2000, 2001 and 2002. The administrative process ended unfavorable for both Companies. On July 3, 2015, Banco and Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A. and Santander DTVM) filed a lawsuit seeking to annul both tax debts. Said action had an inadmissible sentence and decision, which gave rise to the filing of a Special Appeal to the STJ and an Extraordinary Appeal to the STF, which are awaiting judgment. Based on the assessment of the legal advisors, a provision was made to cover the loss considered probable in the lawsuit.
National Institute of Social Security (INSS) - R$51,823 in the Bank and R$51,823 in the Consolidated (12/31/2020 - R$51,402 in the Bank and R$51,409 in the Consolidated): Banco Santander and its subsidiaries are discussing administratively and judicially the collection of social security contribution and education salary on various amounts that, according to the assessment of legal advisors, do not have a salary nature.
Tax on Services (ISS) - Financial Institutions - R$264,056 Bank and R$289,518 in the Consolidated (12/31/2020 - R$239,370 in the Bank and R$263,183 in the Consolidated): Banco Santander and its subsidiaries are discussing administratively and judicially the requirement, by several municipalities, of the payment of ISS on various revenues arising from operations that are not usually classified as provision of services. In addition, other actions involving ISS, classified as possible loss risk, are described in note 20.h.
d.2) Legal and Administrative Lawsuits of a Labor Nature
These are lawsuits filed by Unions, Associations, the Public Ministry of Labor and former employees claiming labor rights they deem to be due, in particular the payment of “overtime” and other labor rights, including lawsuits related to retirement benefits.
For lawsuits considered common and similar in nature, provisions are recorded based on the historical average of closed proceedings. Claims that do not meet the above criteria are provisioned based on an individual assessment carried out, and the provisions are set up based on the probable risk of loss, in the law and in case law, in accordance with the assessment of loss carried out by the legal advisors.
Former employees of Banespa. Action distributed in 1998 by the Association of Retired Persons of Banespa (AFABESP) requesting the payment of a semiannual bonus provided for in the regulations of Banco Banespa for approximately 8,400 former employees (retirees), according to which the payment will be made in the event that the Bank makes a profit and the distribution of this profit is approved by the board of directors. The bonus was not paid in 1994 and 1995 because Banespa bank did not make a profit during these years. Partial payments were made between 1996 and 2000 as approved by the board of directors. Said clause was excluded from the regulation in 2001. The Regional Labor Court and the Superior Labor Court ordered Santander Brasil, as successor to Banespa,
to pay the semiannual bonus for the periods relating to the second semester of 1996 and the semesters of 1997. On March 20, 2019, a decision of the Federal Supreme Court (Supreme Federal Court, or “STF”) rejected the extraordinary appeal filed by Banco Santander, which did not resolve the merits of the case. We filed a rescission action to annul the sentence due to the lack of legitimacy of AFABESP (second precedent No. 573.232 of the STF) or to recognize the nullity of the TRT judgment that did not notify Banco Santander about the modifying effects of the decision, as well as to suspend the execution in the main process. The rescission action was dismissed, and this decision was filed a motion for clarification, due to the absence of an explicit statement about the arguments brought by the Bank. Regarding the Motions for Clarification, the points of omission were not answered as required by law, which is why an Extraordinary Appeal was filed, which was denied by the TST. From this decision, the Bank filed an interlocutory appeal, which is pending admissibility, considering that the decisions rendered by the Superior Labor Court contradict the already peaceful position in the STF (precedent No. 573,232), according to which the Association needs a specific power of attorney to sue in judgment, and also the decision affronts constitutional precepts about access to justice (item XXXV of art. 5 of the CF) by determining excessive collection of costs. In relation to the main action, in August 2021, a decision was rendered that determined that the execution be carried out individually in the court corresponding to each defendant and AFABESP filed an appeal, however, so far there has been no decision in this regard.
Our legal advisors classified the risk of loss as probable. The current decisions of the court, and neither of the court in the main proceedings, do not define a specific amount to be paid by the substituted, and the amounts must be calculated in regular settlement of the sentence.
On September 30, 2021, the case is classified as probable loss and the provision was constituted based on the estimated loss.
d.3) Civil Judicial and Administrative Proceedings
These provisions generally arise from: (1) lawsuits requesting revision of contractual terms and conditions or requests for monetary adjustments, including alleged effects of the implementation of various government economic plans, (2) lawsuits arising from financing contracts, (3) execution actions; and (4) damages claims. For civil actions considered common and similar in nature, provisions are recorded based on the historical average of closed proceedings. Claims that do not meet the above criteria are provisioned based on an individual assessment carried out, and the provisions are set up based on the probable risk of loss, in the law and in case law, in accordance with the assessment of loss carried out by the legal advisors.
The main lawsuits classified as risk of probable loss are described below:
Indemnity Actions - These refer to compensation for material and/or moral damage, relating to the consumer relationship, dealing mainly with issues relating to credit cards, direct consumer credit, checking accounts, collection and loans and other matters. In the actions related to causes considered similar and usual for the business, in the normal course of the Bank's activities, the provision is constituted based on the historical average of closed processes. Claims that do not meet the above criteria are provisioned based on an individual assessment carried out, and the provisions are set up based on the probable risk of loss, in the law and in case law, in accordance with the assessment of loss carried out by the legal advisors.
Economic Plans - Refer to legal disputes, claiming alleged inflationary purges arising from Economic Plans (Bresser, Verão, Collor I and II), as they understand that such plans violated acquired rights related to the application of inflation indices supposedly due to Savings Accounts, Judicial Deposits and Time Deposits (CDBs). The lawsuits are provisioned based on the individualized assessment of loss carried out by the legal advisors.
Banco Santander is also party to public civil actions, on the same matter, filed by consumer protection entities, the Public Ministry or Public Defenders. The constitution of a provision is made only for cases with probable risk, based on requests for individual executions. The issue is still under review at the STF. There is jurisprudence in the STF favorable to Banks regarding economic phenomenon similar to that of savings, as in the case of correction of time deposits (CDBs) and corrections applied to contracts (table).
However, the jurisprudence of the STF has not yet been consolidated on the constitutionality of the norms that modified the monetary standard in Brazil. On April 14, 2010, the Supreme Court of Justice (STJ) ruled that the deadline for bringing public civil actions discussing the purges is 5 years from the date of the plans, but this decision has not yet become final. Thus, with this decision, a large part of the actions, as they were proposed after a period of 5 years, will probably be dismissed, reducing the amounts involved. The STJ also decided that the period for individual savers to qualify for Public Civil Actions is also 5 years, counted from the final and unappealable decision of the respective sentence. Banco Santander believes in the success of the theses defended before these courts for their content and foundation.
At the end of 2017, the Federal General Counsel (AGU), Bacen, the Consumer Defense Institute (Idec), the Brazilian Savings Front (Febrapo) and the Brazilian Federation of Banks (Febraban) signed an agreement that seeks to end the legal disputes over the Economic Plans.
Discussions focused on defining the amount that would be paid to each author, according to the balance in the passbook on the date of the plan. The total value of the payments will depend on the number of subscriptions, and also on the number of savers who have proven in court the existence of the account and the balance on the anniversary date of the change in the indices. The term of agreement negotiated between the parties was approved by the STF.
In a decision handed down by the STF, there was a national suspension of all processes that deal with the issue for the period of validity of the agreement, with the exception of cases in which the sentence was definitively complied with.
On March 11, 2020, the agreement was extended by means of an amendment, with the inclusion of actions that involve only the discussion of the Collor I Plan. June 2020
Management considers that the provisions made are sufficient to cover the risks involved with the economic plans, considering the approved agreement.
e) Tax and Social Security, Labor and Civil Contingent Liabilities Classified as Risk of Possible Loss
These are legal and administrative proceedings of a tax, social security, labor and civil nature classified, based on the opinion of legal advisors, as a possible risk of loss, and therefore not provisioned.
Tax lawsuits classified as possible losses totaled R$28,071 million in the Consolidated, with the main lawsuits being as follows:
INSS on Profit Sharing (PLR) - the Bank and its subsidiaries have legal and administrative proceedings arising from questionings by the tax authorities regarding the collection of social security contributions on payments made as profit sharing. As of September 30, 2021, the amount was approximately R$6,217 million.
Tax on Services (ISS) - Financial Institutions - Banco Santander and its subsidiaries are discussing administratively and in court the demand, by several municipalities, of payment of ISS on various revenues arising from operations that are not usually classified as services rendered. As of September 30, 2021, the amount was approximately R3,997 million.
Non-Approved Compensation - the Bank and its affiliates are discussing administratively and judicially with the Federal Revenue Service the non-approval of tax offsets with credits arising from overpayments or undue payments. As of September 30, 2021, the amount was approximately R$5,212 million.
Amortization of Banco Real's Goodwill - the Federal Revenue Service of Brazil issued a tax assessment notice against the Bank to demand the payment of IRPJ and CSLL, including late payment charges, for the 2009 base period. The Tax Authorities considered that the goodwill related to the acquisition of Banco Real, amortized before its merger, could not be deducted by Banco Santander for tax purposes. The tax assessment notice was duly challenged and we are currently awaiting judgment before the CARF. As of September 30, 2021, the amount was approximately R$1,456 million.
Losses on Credit Operations - the Bank and its subsidiaries challenged the tax assessments issued by the Federal Revenue of Brazil alleging the improper deduction of losses on credit operations from the IRPJ and CSLL calculation bases for allegedly not complying with the requirements of applicable laws. As of September 30, 2021, the amount was approximately R$1,166 million.
Use of CSLL Tax Loss and Negative Basis– Tax assessment notices issued by the Brazilian Federal Revenue Service in 2009 for alleged undue compensation of CSLL tax loss and negative basis, as a result of tax assessment notices issued in previous periods. Awaiting judgment at the administrative level. As of September 30, 2021, the amount was approximately R$1,084 million.
Amortization of Banco Sudameris Goodwill- the tax authorities issued tax assessment notices to demand the payments of IRPJ and CSLL, including late payment charges, referring to the tax deduction of the amortization of the goodwill paid on the acquisition of Banco Sudameris, referring to the base period 2007 to 2012. Banco Santander presented the respective administrative defenses, which were judged unfavorably. Currently, the processes are awaiting judgment at CARF. As of September 30, 2021, the amount was approximately R$654 million.
IRPJ and CSLL - Capital Gain - the Internal Revenue Service of Brazil issued a tax assessment notice against Santander Seguros (legal successor of ABN AMRO Brasil Dois Participações SA (AAB Dois Par) charging income tax and social contribution related to the fiscal year de 2005. The Federal Revenue Service of Brazil claims that the capital gain on the sale of the shares of Real Seguros SA and Real Vida e Previdência SA by AAB Dois Par should be taxed at a rate of 34.0% instead of 15.0 %. The assessment was challenged administratively based on the understanding that the tax treatment adopted in the transaction was in accordance with current tax legislation and the capital gain was duly taxed. The administrative proceeding ended unfavorably to the Company. In July 2020, the Company filed a lawsuit seeking to cancel the debt. The lawsuit is awaiting judgment. Banco Santander is responsible for any adverse outcome in this proceeding as the former controlling shareholder of the Zurich Santander Brasil Seguros e Previdência S.A. As of September 30, 2021, the amount was approximately R$493 million.
Labor claims classified as possible loss totaled R$249 million in the Consolidated, excluding the process below:
Readjustment of the Pension Supplements of Banesprev by the IGPDI – action filed in 2002 in the Federal Court by the Association of Retired Employees of the Bank of the State of São Paulo requesting the readjustment of the pension supplementation by the IGPDI for Banespa retirees who have been admitted until May 22 of 1975. The judgment granted the correction, but only in periods in which no other form of adjustment was applied. The Bank and Banesprev appealed this decision and the appeals are still pending judgment. In Provisional Execution, calculations were presented by the Bank and Banesprev due to the exclusion of participants who, among other reasons, appear as plaintiffs in other actions or have already had some type of readjustment. The amount involved is not disclosed due to the current procedural stage of the case and potentially affecting the progress of the action.
Liabilities related to civil lawsuits with possible risk of loss totaled R$1,620 million in the Consolidated, with the main lawsuits:
Indemnity Action Arising from Banco Bandepe - related to the loan agreement under appeal by the Superior Court of Justice (STJ).
Indemnity Action Referring to Custody Services - provided by Banco Santander at an initial stage and still without a sentence.
Action Arising from Contractual Dispute- in the acquisition of Banco Geral do Comércio SA under appeal by the Court of Justice of the State of São Paulo (TJSP).
f) Other Legal Actions for the Liability of Former Controllers
Refer to civil lawsuits, in the amount of R$496 (12/31/2020 - R$496) in the Bank and in the Consolidated, recorded in other liabilities (Note 18) for which the former controllers of Banks and acquired companies are responsible. Based on the signed contracts, these shares are guaranteed full reimbursement by the former controlling shareholders, whose respective rights were recorded in other assets (Note 11).
20. Stockholders’ Equity
a) Capital
According to the Bylaws, Banco Santander's capital stock may be increased up to the limit of the authorized capital, regardless of statutory amendment, upon resolution of the Board of Directors and through the issuance of up to 9,090,909,090 (nine billion, ninety million, nine hundred and nine thousand and ninety) shares, subject to the legal limits established for the number of preferred shares. Any capital increase that exceeds this limit will require shareholder approval.
At the Extraordinary General Meeting held on March 31, 2021, it was approved in the context of the partial Spin-off of Santander Brasil, which resulted in the segregation of its shares issued by Getnet Adquirência e Serviços para Meios de Pagamentos SA (“Getnet”), with version from the spun-off portion to Getnet, the reduction of the share capital of Santander Brasil in the total amount of 2,000,000 (two billion reais), without the cancellation of shares, changing the share capital of Santander Brasil from 57,000,000 (fifty-seven billion reais) to 55,000,000 (fifty-five billion reais).
The share capital, fully subscribed and paid-in, is divided into registered, book-entry shares, with no par value.
Thousands of Shares | ||||||||||||
9/30/2021 | 12/31/2020 | |||||||||||
Common | Preferred | Total | Common | Preferred | Total | |||||||
Brazilian Residents | 109,696 | 135,262 | 244,958 | 109,885 | 135,438 | 245,323 | ||||||
Foreign Residents | 3,708,999 | 3,544,574 | 7,253,573 | 3,708,810 | 3,544,398 | 7,253,208 | ||||||
Total | 3,818,695 | 3,679,836 | 7,498,531 | 3,818,695 | 3,679,836 | 7,498,531 | ||||||
(-) Treasury Shares | (15,821) | (15,821) | (31,642) | (18,829) | (18,829) | (37,658) | ||||||
Total Outstanding | 3,802,874 | 3,664,015 | 7,466,889 | 3,799,866 | 3,661,007 | 7,460,873 |
b) Dividends and Interest on Capital
By-laws, shareholders are guaranteed a minimum dividend of 25% of net income for each year, adjusted in accordance with legislation. Preferred shares do not have voting rights and cannot be converted into common shares, but they have the same rights and advantages granted to common shares, in addition to priority in the distribution of dividends and an additional 10% on dividends paid to common shares, and in the reimbursement of capital, without premium, in case of dissolution of the Bank.
Dividends were calculated and paid in accordance with the Brazilian Corporate Law.
Before the Annual Shareholders' Meeting, the Board of Directors may decide on the declaration and payment of dividends on the profits earned, based on: (i) balance sheets or profit reserves existing in the last balance sheet or (ii) balance sheets issued in periods of less than six months, provided that the total dividends paid in each semester of the fiscal year does not exceed the amount of capital reserves. These dividends are fully imputed to the mandatory dividend.
CMN Resolution No. 4,885, of December 23, 2020, prohibited institutions authorized to operate by the Central Bank of Brazil to remunerate equity above the highest between: i) 30% of net income adjusted pursuant to item I of article 20 of Law No. 6.404/76; or ii) mandatory minimum dividends established by article 202 of Law 6,404/76, including in the form of Interest on Equity, until December 31, 2020. The rule also prohibited the reduction of the share capital, except in specific situations, and the increase in the remuneration of its officers, administrators and members of the Board of Directors and the Fiscal Council.
We present below the distribution of dividends and Interest on Equity made on September 30, 2021 and December 31, 2020.
9/30/2021 | ||||||||||||||
In Thousands | Brazilian Real per Thousand Shares/Units | |||||||||||||
of Brazilian Real | Gross | Net | ||||||||||||
Common | Preferred | Unit | Common | Preferred | Unit |
Dividends (1)(3) | 3,000,000 | 382.9809 |
| 421.2789 |
| 804.2597 | 382.9809 | 421.2789 | 804.2597 | |||||
Interest on Capital (2)(3) | 3,400,000 | 434.0449 | 477.4494 | 911.4944 | 368.9382 | 405.8320 | 774.7702 | |||||||
Total | 6,400,000 |
(1) Resolved by the Board of Directors on April 27, 2021, paid on June 2, 2021, without any remuneration as monetary restatement.
(2) Resolved by the Board of Directors on July 27, 2021, paid on September 3, 2021, without any remuneration as monetary restatement.
(3) It was fully imputed to the mandatory minimum dividends to be distributed by the Bank for the year 2021.
12/31/2020 | ||||||||||||||
In Thousands | Brazilian Real per Thousand Shares/Units | |||||||||||||
of Brazilian Real | Gross | Net | ||||||||||||
Common | Preferred | Unit | Common | Preferred | Unit | |||||||||
Interest on Capital (1)(5) | 890,000 | 113.7129 | 125.0842 | 238.7972 | 96.6560 | 106.3216 | 202.9776 | |||||||
Interest on Capital (2)(5) | 770,000 | 98.3793 | 108.2172 | 206.5965 | 83.6224 | 91.9846 | 175.6070 | |||||||
Interest on Capital (3)(5) | 1,000,000 | 127.7636 | 140.5400 | 268.3036 | 108.5991 | 119.4590 | 228.0580 | |||||||
Interest on Capital (4)(5) | 665,000 | 84.9626 | 93.4589 | 178.4214 | 72.2182 | 79.4400 | 151.6582 | |||||||
Dividends (6)(5) | 512,085 | 65.4257 | 71.9683 | 137.3940 | 65.4257 | 71.9683 | 137.3940 | |||||||
Total | 3,837,085 |
(1) Resolved by the Board of Directors on April 27, 2020, paid on June 24, 2020, without any remuneration as monetary restatement.
(2) Resolved by the Board of Directors on July 28, 2020, paid on September 25, 2020, without any remuneration on account of monetary restatement.
(3) Resolved by the Board of Directors on October 26, 2020, paid on December 23, 2020, without any remuneration as monetary restatement.
(4) Resolved by the Board of Directors on December 28, 2020, paid from February 1, 2021, without any remuneration as monetary restatement.
(5) It was fully imputed to the mandatory minimum dividends to be distributed by the Bank for the year 2020.
(6) Resolved by the Board of Directors on February 2, 2021, paid on March 3, 2021, without any remuneration as monetary restatement.
c) Reservations
The net income calculated, after deductions and legal provisions, will have the following destination:
Legal reserve
According to the Brazilian corporate law, 5% for the constitution of the legal reserve, until it reaches 20% of the capital. This reserve is intended to ensure the integrity of the capital stock and can only be used to offset losses or increase capital.
Capital reserves
The Bank's capital reserves are composed of: share premium reserve and other capital reserves, and can only be used to absorb losses that exceed retained earnings and profit reserves; redemption, reimbursement or acquisition of our own shares; incorporation to the share capital; or payment of dividends to preferred shares under certain circumstances.
Dividend Equalization Reserve
After the allocation of dividends, the balance, if any, may, upon proposal of the Executive Board and approved by the Board of Directors, be allocated to the formation of a reserve for equalization of dividends, which will be limited to 50% of the capital stock. This reserve is intended to guarantee funds for the payment of dividends, including in the form of interest on equity, or its advances, in order to maintain the flow of remuneration to shareholders.
d) Treasury Shares
At a meeting held on February 2, 2021, the Board of Directors approved, in continuity with the buyback program that expired on November 4, 2020, a new buyback program for Units and ADRs issued by Banco Santander, directly or through its branch in Cayman, for maintenance in treasury or subsequent sale.
The Buyback Program encompasses the acquisition of up to 36,956,402 Units, representing 36,956,402 common shares and 36,956,402 preferred shares, which corresponded, on December 31, 2020, to approximately 1% of the Bank's capital stock. As of December 31, 2020, Banco Santander had 355,661,814 common shares and 383,466,228 preferred shares outstanding.
The repurchase is aimed at (1) maximizing the generation of value for shareholders through efficient management of the capital structure; and (2) enable the payment of administrators, management-level employees and other employees of the Bank and companies under its control, under the terms of the Long-Term Incentive Plans. The term of the Buyback Program is up to 18 months from February 3, 2021, ending on August 2, 2022.
Bank/Consolidated | ||||
Shares in Thousands | ||||
9/30/2021 | 12/31/2020 | |||
Quantity | Quantity | |||
Units | Units | |||
Treasury Shares at Beginning of the Period | 18,829 | 16,702 |
Shares Acquisitions | 90 | 5,052 | ||
Payment - Share-Based Compensation | (3,098) | (2,925) | ||
Treasury Shares at Beginning of the Period | 15,821 | 18,829 | ||
Subtotal - Treasury Shares in Thousands of Reais | 713,068 | 789,587 | ||
Issuance Cost in Thousands of Reais | 1,771 | 1,771 | ||
Balance of Treasury Shares in Thousands of Reais | 714,839 | 791,358 | ||
Cost/Share Price | Units | Units | ||
Minimum Cost (*) | 7.55 | 7.55 | ||
Weighted Average Cost (*) | 33.85 | 33.24 | ||
Maximum Cost (*) | 49.55 | 49.55 | ||
Share Price | 40.50 | 44.83 |
(*) Considering since the beginning of operations on the stock exchange.
e) Minority Interest
Stockholders’ Equity |
| Non Controlling Interest |
| |||||||||||||||
9/30/2021 | 12/31/2020 |
| 07/01 a | 01/01 to | 07/01 a | 01/01 to 9/30/2020 | ||||||||||||
Banco RCI Brasil S.A. | 1,002,729 | 844,805 |
| 18,396 | 72,618 | 23,462 | 83,540 | |||||||||||
Banco Hyundai Capital Brasil S.A. | 174,456 | 162,010 |
| 3,044 | 12,331 | 2,017 | 10,246 | |||||||||||
Banco PSA | 137,243 | 136,806 |
| 1,951 | 7,937 | 2,666 | 7,878 | |||||||||||
Rojo Entretenimento S.A. | 6,899 | 7,087 |
| (45) | (187) | (61) | (96) | |||||||||||
Santander Leasing | - | - |
| - | - | - | (444) | |||||||||||
GIRA | 614 | - |
| (559) | (831) | - | - | |||||||||||
TORO Corretora | 22,547 | - |
| (4,803) | - | - | ||||||||||||
Total | 1,344,490 | 1,150,708 |
| 19,147 | 87,065 | 28,084 | 101,124 |
(1) Investment funds closed during 2019.
21. Related Parties
a) Remuneration of Key Management Personnel
The Bank's Board of Directors' Meeting held on March 26, 2021 approved, in accordance with the favorable recommendation of the Compensation Committee, the proposal for maximum global compensation for Managers (Board of Directors and Executive Board) for the year 2021, in the amount of up to R$433,940 (four hundred and thirty-three million, nine hundred and forty thousand reais), comprising fixed, variable and share-based compensation and other benefits. The proposal was discussed at the Annual General Meeting (AGM) held on April 30, 2021.
a.1) Long Term Benefits
The Bank, like Banco Santander Spain, as well as other subsidiaries around the world of Grupo Santander, has long-term remuneration programs linked to the performance of the market price of its shares, based on the achievement of targets.
a.2) Short Term Benefits
The table below shows the salaries and fees of the Board of Directors and Executive Board and refers to the amount recognized as an expense in the periods ended September 30, 2021 and 2020, by Banco Santander and its subsidiaries to its Directors for the positions they hold at Banco Santander and other companies of the Santander Conglomerate.
The amounts related to the Variable and Share-Based Compensation will be paid in subsequent periods.
07/01 to | 01/01 to | 07/01 to | 01/01 to 9/30/2020 | |||||
Fixed Compensation | 23,688 | 68,537 | 21,715 | 67,348 | ||||
Variable Compensation - in cash | 21,349 | 76,475 | 11,621 | 71,808 | ||||
Variable Compensation - in shares | 16,049 | 70,574 | 19,379 | 67,953 | ||||
Others | 22,718 | 47,482 | 12,202 | 35,362 | ||||
Total Short-Term Benefits | 83,804 | 263,068 | 64,917 | 242,471 | ||||
Variable Compensation - in cash | 11,984 | 82,946 | 8,950 | 86,933 | ||||
Variable Compensation - in shares | 13,663 | 87,107 | 28,277 | 84,422 | ||||
Total Long-Term Benefits | 25,647 | 170,053 | 37,227 | 171,355 | ||||
Total | 109,451 | 433,121 | 102,144 | 413,826 |
Additionally, in 2021, charges on Administration in the amount of R$23,728 (2020 - R$21,525) were collected.
b) Termination of the Agreement
The termination of the employment relationship with the Administrators, in the event of non-compliance with obligations or by the contractor's own will, does not entitle the holder to any financial compensation and the benefits acquired will be discontinued.
c) Credit Operations
The Bank and its subsidiaries may carry out transactions with related parties, in line with current legislation regarding articles 6 and 7 of CMN Resolution No. 4,693/18, article 34 of the "Law of Corporations" and the Policy for Transactions with Parties Santander Related, published on the Investor Relations website, being considered as related parties:
(1) its controllers, natural or legal persons, pursuant to art. 116 of the Corporations Law;
(2) its officers and members of statutory or contractual bodies;
(3) in relation to the persons mentioned in items (i) and (ii), their spouse, partner and relatives, consanguineous or related, up to the second degree;
(4) natural persons with a qualified equity interest in its capital;
(5) legal entities with a qualified equity interest in its capital;
(6) legal entities in whose capital, directly or indirectly, a Santander Financial Institution holds a qualified shareholding;
(7) legal entities in which a Santander Financial Institution has effective operational control or preponderance in resolutions, regardless of ownership interest; and
(8) legal entities that have a director or member of the Board of Directors in common with a Santander Financial Institution.
d) Ownership Interest
The table below shows the direct interest (common and preferred shares):
Shares in Thousands | ||||||||||||
9/30/2021 | ||||||||||||
Stockholders | Common Shares | Common Shares (%) | Preferred Shares | Preferred Shares (%) | Total Shares | Total Shares (%) | ||||||
Sterrebeeck B.V. (1) | 1,809,583 | 47.4% | 1,733,644 | 47.1% | 3,543,227 | 47.3% | ||||||
Grupo Empresarial Santander, S.L. (GES) (1) | 1,627,891 | 42.6% | 1,539,863 | 41.9% | 3,167,754 | 42.2% | ||||||
Banco Santander, S.A. (1) | 2,696 | 0.1% | - | 0.0% | 2,696 | 0.0% | ||||||
Directors (*) | 4,909 | 0.1% | 4,969 | 0.1% | 9,878 | 0.1% | ||||||
Others | 357,795 | 9.4% | 385,539 | 10.5% | 743,334 | 9.9% | ||||||
Total Outstanding | 3,802,874 | 99.6% | 3,664,015 | 99.6% | 7,466,889 | 99.6% | ||||||
Treasury Shares | 15,821 | 0.4% | 15,821 | 0.4% | 31,642 | 0.4% | ||||||
Total | 3,818,695 | 100.0% | 3,679,836 | 100.0% | 7,498,531 | 100.0% | ||||||
Free Float (2) | 357,795 | 9.4% | 385,539 | 10.5% | 743,334 | 9.9% | ||||||
Shares in Thousands | ||||||||||||
12/31/2020 | ||||||||||||
Stockholders | Common Shares | Common Shares (%) | Preferred Shares | Preferred Shares (%) | Total Shares | Total Shares (%) | ||||||
Sterrebeeck B.V. (1) | 1,809,583 | 47.4% | 1,733,644 | 47.1% | 3,543,227 | 47.3% | ||||||
GES (1) | 1,627,891 | 42.6% | 1,539,863 | 41.8% | 3,167,755 | 42.2% | ||||||
Banco Santander, S.A. (1) | 2,696 | 0.1% | - | 0.0% | 2,696 | 0.0% | ||||||
Directors (*) | 4,034 | 0.1% | 4,034 | 0.1% | 8,067 | 0.1% | ||||||
Others | 355,662 | 9.3% | 383,466 | 10.4% | 739,128 | 9.8% | ||||||
Total Outstanding | 3,799,866 | 99.5% | 3,661,007 | 99.5% | 7,460,873 | 99.5% | ||||||
Treasury Shares | 18,829 | 0.5% | 18,829 | 0.5% | 37,658 | 0.5% | ||||||
Total | 3,818,695 | 100.0% | 3,679,836 | 100.0% | 7,498,531 | 100.0% | ||||||
Free Float (2) | 355,662 | 9.3% | 383,466 | 10.4% | 739,128 | 9.9% |
(1) Companies of the Santander Spain Group.
(2) Composed of Officials and Others.
(*) None of the members of the Board of Directors and the Executive Board holds 1.0% or more of any class of shares.
e) Related Party Transactions
Santander has a Policy for Transactions with Related Parties approved by the Board of Directors, which aims to ensure that all transactions defined in the policy are carried out with the interests of Banco Santander and its shareholders in mind. The policy defines powers for approval of certain transactions by the Board of Directors. The rules provided for are also applied to all employees and managers of Banco Santander and its subsidiaries.
Transactions and remuneration for services with related parties are carried out in the normal course of business and under commutative conditions, including interest rates, terms and guarantees, and do not involve greater risks than normal collection risks or present other disadvantages.
Bank | Consolidated | |||||||||||||||||||||||||||||||||||
Assets | Income | Assets | Income | Assets | Income | Assets | Income | |||||||||||||||||||||||||||||
(Liabilities) | (Expenses) | (Liabilities) | (Expenses) | (Liabilities) | (Expenses) | (Liabilities) | (Expenses) | |||||||||||||||||||||||||||||
09/30/2021 | 07/01 to 9/30/2021 | 01/01 to | 12/31/2020 | 07/01 to 9/30/2020 | 01/01 to 09/30/2020 | 09/30/2021 | 07/01 to 9/30/2021 | 01/01 to | 12/31/2020 | 07/01 to 9/30/2020 | 01/01 to 09/30/2020 | |||||||||||||||||||||||||
Cash | 2,217,558 | - | - | 12,913,526 | - | - | 2,217,558 | - | - | 12,896,899 | - | - | ||||||||||||||||||||||||
Banco Santander Espanha (1) | 963,516 | - | - | 2,475,959 | - | - | 963,516 | - | - | 2,459,332 | - | - | ||||||||||||||||||||||||
Santander Bank, National Association | 1,087,880 | - | - | 10,315,450 | - | - | 1,087,880 | - | - | 10,315,450 | - | - | ||||||||||||||||||||||||
Others | 166,162 | - | - | 122,117 | - | - | 166,162 | - | - | 122,117 | - | - | ||||||||||||||||||||||||
Interbank Investments | 84,634,778 | 1,173,468 | 2,870,057 | 74,635,984 | 912,223 | 2,493,734 | - | 3,495 | 4,966 | - | 190 | 8,094 | ||||||||||||||||||||||||
Aymoré CFI (2) | 53,119,388 | 770,698 | 2,001,604 | 45,970,236 | 615,836 | 1,844,679 | - | - | - | - | - | - | ||||||||||||||||||||||||
Banco Santander Espanha (1) | - | 3,495 | 4,966 | - | 191 | 8,067 | - | 3,495 | 4,966 | - | 190 | 8,094 | ||||||||||||||||||||||||
Banco PSA | 892,406 | 4,738 | 30,993 | 1,012,276 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Banco RCI Brasil S.A. (2) | 2,570,664 | 48,319 | 120,027 | 3,565,452 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander Leasing (2) | 144,215 | 1,230 | 1,230 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Bandepe (2) | 24,411,563 | 293,722 | 584,666 | 21,429,296 | 120,632 | 412,731 | - | - | - | - | - | - | ||||||||||||||||||||||||
Banco Olé Consignado | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Others | 3,496,542 | 51,266 | 126,571 | 2,658,724 | 175,564 | 228,257 | - | - | - | - | - | - | ||||||||||||||||||||||||
Securities | 1,333,759 | 67,849 | 122,814 | 312,469 | 1,671 | 8,189 | 1,011,767 | 38,884 | 69,372 | - | - | - | ||||||||||||||||||||||||
Santander Leasing (2) | 320,303 | 3,869 | 7,834 | 312,469 | 1,671 | 8,189 | - | - | - | - | - | - | ||||||||||||||||||||||||
Apolo Fundo de Investimento em Direitos Creditórios | 1,011,767 | 38,884 | 69,372 | - | - | - | 1,011,767 | 38,884 | 69,372 | - | - | - | ||||||||||||||||||||||||
Verbena FCVS - Fundo de Investimento em Direitos Creditórios | 1,689 | 25,096 | 45,608 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Derivatives Financial Instruments - Net | 515,328 | (978,719) | (645,162) | (2,584,973) | (461,687) | 774,070 | 5,492 | (1,094,989) | 78,202 | (1,103,558) | 115,302 | (1,708,155) | ||||||||||||||||||||||||
Fundo de Investimento Santillana (3) | 9,864 | (12,207) | 113,093 | (130,038) | 170,660 | (373,448) | 9,864 | (12,207) | 113,093 | (130,038) | 170,660 | (373,448) | ||||||||||||||||||||||||
Banco Santander Espanha (1) | (4,372) | (1,082,787) | (35,015) | (978,700) | (57,555) | (1,265,171) | (4,372) | (1,082,787) | (35,015) | (973,520) | (55,502) | (1,334,989) | ||||||||||||||||||||||||
Santander FI Amazonas (2) | 301,964 | (55,569) | 137,887 | 162,513 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander FI Hedge Strategies (2) | 594,525 | 891,813 | (136,678) | (1,052,385) | 93,464 | 1,466,751 | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander Hermes Multi Créd Priv Infra Fundo de Investimentos | 58,278 | (11,299) | (13,602) | 92,370 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander FI Diamantina (2) | (444,931) | (708,675) | (710,971) | (678,733) | (580,800) | 884,716 | - | - | - | - | - | - | ||||||||||||||||||||||||
Key Management Personnel | - | 5 | 124 | - | 144 | 282 | - | 5 | 124 | - | 144 | 282 | ||||||||||||||||||||||||
Others | - | - | - | - | (87,600) | 60,940 | - | - | - | - | - | - | ||||||||||||||||||||||||
Interfinancial Relations | 19,784,751 | 1,042 | 2,959 | 17,447,264 | (1,620) | 8,259 | 19,782,698 | 1,042 | 1,719 | - | - | - | ||||||||||||||||||||||||
Getnet S.A. (5) | 19,782,698 | 1,042 | 1,719 | 17,444,497 | 292 | 5,595 | 19,782,698 | 1,042 | 1,719 | - | - | - | ||||||||||||||||||||||||
Santander Leasing (2) | 2,053 | - | 1,240 | 2,767 | (1,912) | 2,664 | - | - | - | - | - | - | ||||||||||||||||||||||||
Loan Operations | 2,499,901 | 1,237 | 2,160 | 1,149,718 | 270 | 716 | 2,368,989 | 374 | 1,297 | 98,522 | 277 | 738 | ||||||||||||||||||||||||
Getnet S.A. | 2,273,278 | - | - | 1,051,358 | - | - | 2,273,278 | - | - | - | - | - | ||||||||||||||||||||||||
Gestora de Inteligência de Crédito | 66,667 | - | - | 66,667 | - | - | 66,667 | - | - | 66,667 | - | - | ||||||||||||||||||||||||
Loop Gestão de Pátios S.A. | 10,264 | - | - | 11,966 | - | - | 10,264 | - | - | 11,966 | - | - | ||||||||||||||||||||||||
PI Distribuidora de Títulos e Valores Mobiliários S.A. | - | 863 | 863 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Gestão Integrada de Recebíveis do Agronegócio S.A. | 131,339 | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Key Management Personnel | 18,353 | 374 | 1,297 | 19,727 | 270 | 716 | 18,780 | 374 | 1,297 | 19,889 | 277 | 738 | ||||||||||||||||||||||||
Dividends and Bonuses Receivables | - | - | - | 260,899 | - | - | - | - | - | 18,568 | - | - | ||||||||||||||||||||||||
Aymoré CFI (2) | - | - | - | 176,537 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander CCVM (2) | - | - | - | 5,179 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Bandepe (2) | - | - | - | 855 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Banco RCI Brasil S.A. (2) | - | - | - | 20,536 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander Brasil Tecnologia S.A. (2) | - | - | - | 13,438 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander Leasing (2) | - | - | - | 3,507 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander Corretora de Seguros (2) | - | - | - | 5,459 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Webmotors S.A. | - | - | - | - | - | - | - | - | - | 18,455 | - | - | ||||||||||||||||||||||||
Getnet S.A. | - | - | - | 29,488 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Others | - | - | - | 5,900 | - | - | - | - | - | 113 | - | - | ||||||||||||||||||||||||
Trading Account | 599,594 | 295 | 936 | 342,974 | 666 | 4,782 | 599,594 | 295 | 936 | 342,974 | 666 | 90,030 | ||||||||||||||||||||||||
Banco Santander Espanha (1) | 599,594 | 295 | 936 | 342,974 | 666 | 4,782 | 599,594 | 295 | 936 | 342,974 | 666 | 90,030 | ||||||||||||||||||||||||
Foreign Exchange Portfolio - Net | (28,744) | (3,045) | (96,069) | (353,445) | (105,557) | 775,828 | (28,744) | (3,045) | (96,069) | (353,445) | (105,557) | 775,828 | ||||||||||||||||||||||||
Banco Santander Espanha (1) | (28,744) | (3,110) | (96,339) | (353,445) | (105,622) | 775,703 | (28,744) | (3,110) | (96,339) | (353,445) | (105,622) | 775,703 | ||||||||||||||||||||||||
Key Management Personnel | - | 65 | 270 | - | 65 | 125 | - | 65 | 270 | - | 65 | 125 | ||||||||||||||||||||||||
Income Receivable | 906,976 | 497,205 | 1,412,040 | 892,761 | 582,722 | 1,542,352 | 915,085 | 827,794 | 2,410,808 | 915,137 | 1,085,719 | 2,199,978 | ||||||||||||||||||||||||
Zurich Santander Brasil Seguros e Previdência S.A. (6) | 828,920 | 388,827 | 1,180,275 | 835,680 | 524,463 | 1,374,213 | 837,029 | 716,975 | 2,170,705 | 858,056 | 1,113,342 | 2,076,659 | ||||||||||||||||||||||||
Zurich Santander Brasil Seguros S.A. (6) | 78,056 | 108,378 | 231,765 | 57,081 | 58,259 | 168,139 | 78,056 | 110,819 | 240,103 | 57,081 | (27,623) | 123,319 | ||||||||||||||||||||||||
Receivables from Affiliates | 80,696 | 205,298 | 521,329 | 18,749 | 136,545 | 453,301 | 60,649 | 55,771 | 101,195 | 13,681 | 1,083 | 6,130 | ||||||||||||||||||||||||
Santander Capitalização S.A. (2) | - | 4,589 | 4,589 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Aymoré CFI (2) | - | 110,964 | 291,450 | - | 84,217 | 304,949 | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander Brasil Gestão de Recursos Ltda. (3) | 169 | 705 | 2,468 | 169 | 1,057 | 5,500 | 169 | 705 | 2,468 | 169 | 1,057 | 5,500 | ||||||||||||||||||||||||
Super Pagamentos e Administração de Meios Eletrônicos S.A. | - | - | - | - | - | - | - | 606 | 1,793 | 532 | - | - | ||||||||||||||||||||||||
Santander CCVM (2) | 873 | 19,845 | 55,373 | - | 17,348 | 50,394 | - | - | - | - | - | - | ||||||||||||||||||||||||
Gesban Servicios Administrativos Globales, S.L. | - | - | - | - | - | - | 23 | - | - | 23 | - | - | ||||||||||||||||||||||||
Santander Brasil Consórcio (2) | 1,054 | 7,980 | 24,164 | 419 | 5,739 | 16,257 | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander Corretora de Seguros (2) | - | 11,084 | 35,904 | - | 8,400 | 25,199 | - | - | - | - | - | - | ||||||||||||||||||||||||
Esfera Fidelidade S.A. | 2,094 | 1,004 | 2,877 | 4,757 | 770 | 2,310 | - | - | - | - | - | - | ||||||||||||||||||||||||
Banco Santander Espanha (1) | 4,516 | - | - | 4,516 | - | - | 4,516 | - | - | 4,516 | - | - | ||||||||||||||||||||||||
Santander Digital Assets, SL | - | - | - | - | - | - | - | - | - | 8,105 | - | - | ||||||||||||||||||||||||
Santander FI Hedge Strategies (2) | 13,294 | 3,500 | 6,499 | 6,795 | 1,035 | 3,464 | - | - | - | - | - | - | ||||||||||||||||||||||||
Getnet S.A. (5) | 55,266 | 29,454 | 58,486 | 632 | 1,609 | 4,612 | 55,601 | 52,451 | 92,322 | - | - | - | ||||||||||||||||||||||||
Santander Brasil Tecnologia S.A. (2) | - | 244 | 733 | - | 244 | 733 | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander fundo de Investimento Diamantina Multimercado Crédito Privado Investimento no exterior (2) | 1,969 | 6,001 | 15,872 | - | 10,337 | 25,118 | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander Caceis Brasil DTVM S.A. (3) | - | 974 | 2,923 | - | - | - | - | 974 | 2,923 | - | - | - | ||||||||||||||||||||||||
Others | 1,461 | 8,954 | 19,991 | 1,461 | 5,789 | 14,765 | 340 | 1,035 | 1,689 | 336 | 26 | 630 | ||||||||||||||||||||||||
Non Operating Income | - | - | - | - | - | 168,588 | - | - | - | - | - | 168,588 | ||||||||||||||||||||||||
Super Pagamentos e Administração de Meios Eletrônicos S.A. | - | - | - | - | - | 168,588 | - | - | - | - | - | 168,588 | ||||||||||||||||||||||||
Other Receivables - Others | 1,647,184 | 30,091 | 88,071 | 1,452,382 | 32,803 | 187,577 | 1,637,833 | 73,976 | 164,377 | 1,486,386 | 125,228 | 163,187 | ||||||||||||||||||||||||
Gesban Servicios Administrativos Globales, S.L. | - | - | - | - | - | - | - | - | - | 1,486,341 | - | 8,006 | ||||||||||||||||||||||||
Banco Santander Espanha (1) | 1,560,290 | - | - | 1,444,376 | - | - | 1,560,387 | - | - | - | - | (35) | ||||||||||||||||||||||||
Santander Capitalização S.A. (2) | 5,326 | 18,110 | 52,349 | 4,416 | 18,802 | 148,786 | - | - | - | - | - | - | ||||||||||||||||||||||||
Banco Santander International (3) | - | 11,119 | 33,653 | - | 10,506 | 34,227 | - | 11,119 | 33,653 | - | 10,506 | 34,227 | ||||||||||||||||||||||||
Santander Caceis Brasil DTVM S.A. (3) | - | 414 | 1,164 | - | 374 | 1,124 | - | 414 | 1,164 | - | 2,131 | 6,394 | ||||||||||||||||||||||||
Santander Brasil Gestão de Recursos Ltda. (3) | - | - | - | - | - | - | - | 291 | 752 | - | - | - | ||||||||||||||||||||||||
Santander Global Thechnology, S.L., SOCI | 77,429 | - | - | - | - | - | 77,429 | - | - | - | - | - | ||||||||||||||||||||||||
Key Management Personnel | 2 | 89 | 273 | - | 25 | 118 | 2 | 89 | 273 | 45 | 43 | 186 | ||||||||||||||||||||||||
Others | 4,137 | 359 | 632 | 3,590 | 3,096 | 3,322 | 15 | 62,063 | 128,535 | - | 112,548 | 114,409 | ||||||||||||||||||||||||
Deposits | (29,750,176) | (593,765) | 190,257 | (23,503,316) | 269,259 | 679,534 | (254,243) | 4,025 | (2,969) | (946,054) | (682) | (17,285) | ||||||||||||||||||||||||
Bandepe | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander Leasing (2) | (58,701) | (536) | (960) | (81,354) | (1,438) | (2,522) | - | - | - | - | - | - | ||||||||||||||||||||||||
Banco Santander Espanha (1) | (11,001) | - | - | (13,156) | - | - | (11,001) | - | - | (55,059) | - | - | ||||||||||||||||||||||||
Aymoré CFI (2) | (2,230,784) | (11,191) | (16,595) | (190,480) | (4,293) | (24,141) | - | - | - | - | - | - | ||||||||||||||||||||||||
Zurich Santander Brasil Seguros e Previdência S.A. (6) | (39,590) | - | - | (64,836) | - | - | (39,590) | - | - | (64,836) | - | - | ||||||||||||||||||||||||
Zurich Santander Brasil Seguros S.A. (6) | (4,712) | - | - | (6,443) | - | - | (4,712) | - | - | (6,443) | - | - | ||||||||||||||||||||||||
Santander Brasil Gestão de Recursos Ltda. (3) | (43,781) | (368) | (372) | (335) | (583) | (3,757) | (43,781) | (368) | (372) | (335) | (583) | (3,757) | ||||||||||||||||||||||||
Fundo de Investimento Santillana (3) | (70) | - | - | (44) | 3,314 | - | (70) | - | - | (44) | 3,314 | - | ||||||||||||||||||||||||
Santander Brasil Tecnologia S.A. (2) | (107) | - | - | (780) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Banco RCI Brasil S.A. (2) | (75,799) | (998) | (4,225) | (226,046) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander Caceis Brasil DTVM S.A. (3) | (5,594) | - | - | (581,543) | (2,864) | (11,962) | (5,594) | - | - | (581,543) | (2,864) | (11,962) | ||||||||||||||||||||||||
Getnet S.A. | (30,244) | - | - | (242,391) | - | - | (30,244) | - | - | - | - | - | ||||||||||||||||||||||||
Santander FI Diamantina (2) | (26,822,173) | (583,983) | 218,156 | (21,416,222) | 282,270 | 734,880 | - | - | - | - | - | - | ||||||||||||||||||||||||
Super Pagamentos e Administração de Meios Eletrônicos S.A. | (14,270) | - | - | (36,390) | - | (1) | (14,270) | - | - | (36,390) | - | (1) | ||||||||||||||||||||||||
Banco Santander (Suisse), S.A. | - | 5,447 | - | - | - | - | - | 5,447 | - | - | - | - | ||||||||||||||||||||||||
Key Management Personnel | (40,713) | (443) | (893) | (36,705) | (148) | (700) | (40,713) | (443) | (893) | (36,762) | (148) | (700) | ||||||||||||||||||||||||
Others | (372,637) | (1,693) | (4,854) | (606,591) | (6,999) | (12,263) | (64,268) | (611) | (1,704) | (164,642) | (401) | (865) | ||||||||||||||||||||||||
Repurchase Commitments | (6,656,796) | (64,692) | (182,799) | (7,160,549) | (83,136) | (170,503) | (2,322,365) | (27,167) | (59,940) | (2,186,105) | (11,551) | (34,375) | ||||||||||||||||||||||||
Santander FI Amazonas (3) | (320,677) | (4,312) | (12,508) | (501,984) | (2,350) | (5,560) | - | - | - | - | - | - | ||||||||||||||||||||||||
Super Pagamentos e Administração de Meios Eletrônicos S.A. | - | - | - | - | (4,357) | (6,163) | - | - | - | - | (4,357) | (6,163) | ||||||||||||||||||||||||
Santander Leasing (2) | - | (776) | (1,221) | (151,438) | (9,540) | (29,997) | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander CCVM (2) | (238,859) | (2,687) | (5,075) | (202,222) | (862) | (2,936) | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander FI SBAC (2) | (1,722,371) | (21,574) | (59,054) | (2,797,429) | (51,443) | (71,027) | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander FI Guarujá (2) | (458,197) | (4,866) | (9,643) | (472,220) | (2,173) | (9,034) | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander FI Diamantina (2) | (179,000) | 13,291 | (2,694) | (460,034) | 4,914 | (1,148) | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander FI Unix (2) | (26,271) | (317) | (640) | (25,457) | (130) | (2,462) | - | - | - | - | - | - | ||||||||||||||||||||||||
Fundo de Investimento Santillana (3) | (2,322,365) | (27,205) | (59,936) | (2,186,104) | (6,602) | (27,613) | (2,322,365) | (27,205) | (59,936) | (2,186,104) | (6,602) | (27,613) | ||||||||||||||||||||||||
Pessoal Chave da Administração | - | (1) | (4) | - | - | (7) | - | (1) | (4) | - | - | (7) | ||||||||||||||||||||||||
Others | (1,389,056) | (16,245) | (32,024) | (363,661) | (10,593) | (14,556) | - | 39 | - | (1) | (592) | (592) | ||||||||||||||||||||||||
Funds from Acceptance and Issuance of Securities | 121,427 | (1,650) | (4,042) | (117,368) | (869) | (2,828) | 121,427 | (1,650) | (4,042) | (117,368) | (869) | (2,828) |
| |||||||||||||||||||||||
Key Management Personnel | 121,427 | (1,650) | (4,042) | (117,368) | (869) | (2,828) | 121,427 | (1,650) | (4,042) | (117,368) | (869) | (2,828) | ||||||||||||||||||||||||
Loan and Onlendings | (19,822,063) | (76,498) | (89,815) | (10,401,564) | (1,629) | (3,012) | (19,822,063) | (76,498) | (88,585) | (10,401,564) | (1,629) | (3,012) | ||||||||||||||||||||||||
Banco Santander Espanha (1) | (13,609,044) | (76,498) | (88,585) | (10,401,564) | (1,629) | (3,012) | (13,609,044) | (76,498) | (88,585) | (10,401,564) | (1,629) | (3,012) | ||||||||||||||||||||||||
Banco Santander México (4) | (779) | - | - | - | - | - | (779) | - | - | - | - | - | ||||||||||||||||||||||||
Getnet S.A. |
| (6,212,240) |
| - |
| - |
| (5,576,635) |
| - |
| - |
| (6,212,240) |
| - |
| - |
| - |
| - |
| - | ||||||||||||
Dividends and Bonuses in Paying | - | - | - | (508,491) | 1,042 | (9,098) | - | - | - | (508,491) | 1,042 | (9,098) | ||||||||||||||||||||||||
Banco Santander Espanha (1) | - | - | - | (195) | - | - | - | - | - | (195) | - | - | ||||||||||||||||||||||||
Sterrebeeck B.V. (2) | - | - | - | (268,406) | - | - | - | - | - | (268,406) | - | - | ||||||||||||||||||||||||
GES (1) (3) | - | - | - | (239,890) | - | - | - | - | - | (239,890) | - | - | ||||||||||||||||||||||||
Key Management Personnel | - | - | - | - | 1,042 | (9,098) | - | - | - | - | 1,042 | (9,098) | ||||||||||||||||||||||||
Payables from Affiliates | 1,143,458 | (916,714) | (1,513,340) | (361,599) | (207,333) | (1,307,507) | (274,671) | (700,074) | (1,279,834) | (82,479) | (221,427) | (992,597) | ||||||||||||||||||||||||
Santander Brasil Tecnologia S.A. (2) | - | (61,565) | (192,343) | (4,353) | 51,473 | (165,113) | - | - | - | - | - | - | ||||||||||||||||||||||||
Banco Santander Espanha (1) | (145,463) | (35,883) | (146,309) | (202,787) | (57,049) | (668,504) | (145,463) | (35,883) | (146,309) | (21) | (57,049) | (668,504) | ||||||||||||||||||||||||
Santander Corretora de Seguros, Investimento e Serviços S.A. | (18,787) | (53,807) | (139,670) | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander Corretora de Seguros (2) | - | - | - | (14,751) | (29,790) | (121,559) | - | - | - | - | - | - | ||||||||||||||||||||||||
Getnet S.A. | (17,562) | (143,256) | (346,145) | (17,573) | (5,895) | (17,175) | (17,974) | (150,150) | (354,006) | - | - | - | ||||||||||||||||||||||||
Santander Caceis Brasil DTVM S.A. (3) | (11,656) | (14,596) | (44,246) | (9,373) | (12,271) | (35,234) | (11,656) | (14,596) | (44,246) | (9,373) | (12,271) | (35,234) | ||||||||||||||||||||||||
Santander Leasing (2) | (79,374) | - | - | (79,374) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander Tecnologia e Inovação Ltda | - | (42,737) | (109,155) | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Santander Brasil Asset Management DTVM S.A (3) | - | - | - | - | - | - | - | - | - | (95) | (170) | (429) | ||||||||||||||||||||||||
Zurich Santander Brasil Seguros e Previdência S.A. (6) | - | - | - | - | - | - | - | (236) | 14,195 | (40,550) | - | - | ||||||||||||||||||||||||
Santander Global Technology, S.L., SOCI | (98,439) | (125,260) | (351,073) | (31,774) | (104,500) | (224,003) | (98,439) | (125,260) | (351,073) | (31,774) | (104,726) | (224,618) | ||||||||||||||||||||||||
Santander Fundo de Investimentos SBAC Referenciado | 1,516,703 | 20,479 | 35,836 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Others | (1,964) | (460,089) | (563,201) | (1,614) | (49,301) | (75,919) | (1,139) | (373,949) | (398,395) | (666) | (47,211) | (63,812) | ||||||||||||||||||||||||
Subordinated Debts | (13,957,208) | (1,430,975) | (1,577,165) | (13,119,660) | (754,411) | (5,060,110) | (13,957,208) | (1,430,975) | (1,577,165) | (13,119,660) | (754,411) | (5,060,110) | ||||||||||||||||||||||||
Banco Santander Espanha (1) (4) | (13,957,208) | (1,430,975) | (1,577,165) | (13,119,660) | (754,411) | (5,060,110) | (13,957,208) | (1,430,975) | (1,577,165) | (13,119,660) | (754,411) | (5,060,110) | ||||||||||||||||||||||||
Donations | - | 4,000 | 12,200 | - | (4,100) | (12,400) | - | 3,260 | 12,200 | - | (4,430) | (13,560) | ||||||||||||||||||||||||
Fundação Sudameris | - | 4,000 | 12,200 | - | (4,100) | (12,400) | - | 4,000 | 12,200 | - | (4,100) | (12,400) | ||||||||||||||||||||||||
Fundação Santander | - | - | - | - | - | - | - | (260) | - | - | (330) | (1,160) | ||||||||||||||||||||||||
Other Payables - Others | (605,386) | (801,531) | (1,399,439) | (633,416) | (384,135) | (1,314,195) | (647,663) | (282,004) | (499,079) | (672,658) | (203,645) | (752,886) | ||||||||||||||||||||||||
Banco Santander Espanha (1) | - | - | - | - | - | (1,837) | - | - | - | - | (24) | (1,967) | ||||||||||||||||||||||||
TecBan | - | - | - | - | (88,161) | (274,477) | - | - | - | - | (88,161) | (274,477) | ||||||||||||||||||||||||
Santander Brasil Tecnologia S.A. (2) | - | (53,264) | (159,738) | - | (57,248) | (168,228) | - | - | - | - | - | - | ||||||||||||||||||||||||
Aquanima Brasil Ltda. (3) | - | (6,672) | (24,086) | - | (7,726) | (22,334) | - | (17,134) | (371,000) | - | (7,771) | (22,468) | ||||||||||||||||||||||||
Santander Caceis Brasil DTVM S.A. (3) | - | (8,994) | (11,158) | - | (508) | (2,528) | - | (8,994) | (11,158) | - | (508) | (2,528) | ||||||||||||||||||||||||
Zurich Santander Brasil Seguros e Previdência S.A. (6) | - | - | - | (17,713) | - | - | (26,218) | (8,912) | (23,339) | (38,135) | (4,432) | (16,633) | ||||||||||||||||||||||||
Getnet S.A. | (388,714) | (320,372) | (478,861) | - | (142,969) | (461,325) | (389,132) | (135,150) | (23,339) | - | - | - | ||||||||||||||||||||||||
Santander Global Technology, S.L., SOCI | - | - | - | - | - | - | - | - | - | - | (2,858) | (9,540) | ||||||||||||||||||||||||
Key Management Personnel | (215,514) | (93,187) | (399,424) | (615,469) | (91,494) | (371,481) | (231,809) | (109,478) | (433,160) | (633,276) | (102,144) | (413,826) | ||||||||||||||||||||||||
Others | (1,158) | (319,042) | (326,172) | (234) | 3,971 | (11,985) | (504) | (2,336) | (7,712) | (1,247) | 2,253 | (11,447) | ||||||||||||||||||||||||
Guarantees and Limits | 17,658 | 22 | 63 | 11,038 | 15 | 42 | 17,658 | 22 | 63 | 11,038 | 15 | 42 | ||||||||||||||||||||||||
Key Management Personnel (7) | 17,658 | 22 | 63 | 11,038 | 15 | 42 | 17,658 | 22 | 63 | 11,038 | 15 | 42 |
(1) Controlling - Banco Santander is indirectly controlled by Banco Santander Spain (Notes 1 and 30.d), through its subsidiaries GES and Sterrebeeck B.V.
(2) Direct or indirect subsidiary of Banco Santander.
(3) Direct or indirect subsidiary of Banco Santander Spain.
(4) Refers to the portion acquired by the Controller from the PR Optimization Plan carried out in the first half of 2018.
(5) Corresponds to amounts receivable related to Acquisition.
(6) Significant influence of Banco Santander Spain.
(7) Refers to the registration in clearing accounts of Guarantees and Limits of credit operations with Key Management Personnel.
22. Income from Services Rendered and Banking Fees
Bank | Consolidated | |||||||
07/01 to 9/30/2021 | 01/01 to 9/30/2021 | 07/01 to 9/30/2020 | 01/01 to 9/30/2020 | 07/01 to 9/30/2021 | 01/01 to 9/30/2021 | 07/01 to 9/30/2020 | 01/01 to 9/30/2020 | |
Asset Management | 188,250 | 572,555 | 142,750 | 435,962 | 340,849 | 1,013,290 | 261,984 | 740,246 |
Checking Account Services | 940,719 | 2,864,857 | 1,020,037 | 2,903,486 | 943,489 | 2,868,335 | 1,021,553 | 2,907,836 |
Lending Operations and Income from Guarantees Provided | 301,806 | 866,736 | 275,271 | 787,311 | 397,636 | 1,148,562 | 378,176 | 1,048,531 |
Lending Operations | 122,460 | 353,784 | 94,299 | 311,167 | 218,290 | 635,610 | 197,204 | 572,387 |
Income Guarantees Provided | 179,346 | 512,952 | 180,972 | 476,144 | 179,346 | 512,952 | 180,972 | 476,144 |
Insurance Fees | 510,361 | 1,457,333 | 471,867 | 1,546,511 | 919,913 | 2,555,015 | 745,333 | 2,209,539 |
Cards (Debit and Credit) and Acquiring Services | 1,228,771 | 3,390,108 | 954,141 | 2,696,950 | 1,258,819 | 3,893,850 | 1,406,512 | 3,968,519 |
Collection | 368,706 | 1,116,792 | 375,573 | 1,091,346 | 365,523 | 1,108,718 | 368,629 | 1,086,272 |
Brokerage, Custody and Placement of Securities | 327,725 | 890,235 | 293,575 | 628,794 | 408,579 | 1,127,535 | 361,015 | 838,477 |
Others | 85,600 | 274,413 | 83,265 | 183,412 | 196,327 | 639,543 | 203,142 | 531,269 |
Total | 3,951,938 | 11,433,029 | 3,616,479 | 10,273,772 | 4,831,135 | 14,382,859 | 4,746,344 | 13,330,689 |
23. Personnel Expenses
Bank | Consolidated | |||||||
07/01 to 9/30/2021 | 01/01 to 9/30/2021 | 07/01 to 9/30/2020 | 01/01 to 9/30/2020 | 07/01 to 9/30/2021 | 01/01 to 9/30/2021 | 07/01 to 9/30/2020 | 01/01 to 9/30/2020 | |
Compensation | 877,643 | 2,576,783 | 931,392 | 2,758,105 | 1,003,896 | 2,962,816 | 1,045,482 | 3,112,134 |
Charges | 356,207 | 1,016,656 | 334,987 | 993,298 | 413,747 | 1,181,511 | 386,393 | 1,161,786 |
Benefits | 294,051 | 888,194 | 301,594 | 932,903 | 366,693 | 1,073,310 | 344,688 | 1,069,051 |
Training | 12,013 | 31,465 | 6,128 | 29,316 | 14,119 | 36,387 | 7,893 | 33,335 |
Others | 340 | 714 | 841 | 3,669 | 22,554 | 52,760 | 13,938 | 43,714 |
Total | 1,540,254 | 4,513,812 | 1,574,942 | 4,717,291 | 1,821,009 | 5,306,784 | 1,798,394 | 5,420,020 |
24. Other Administrative Expenses
Bank | Consolidated | |||||||
07/01 to 9/30/2021 | 01/01 to 9/30/2021 | 07/01 to 9/30/2020 | 01/01 to 9/30/2020 | 07/01 to 9/30/2021 | 01/01 to 9/30/2021 | 07/01 to 9/30/2020 | 01/01 to 9/30/2020 | |
Depreciation and Amortization | 667,800 | 2,956,878 | 679,635 | 1,937,155 | 687,788 | 3,101,776 | 773,634 | 2,285,648 |
Outsourced and Specialized Services | 576,842 | 1,648,184 | 484,077 | 1,367,295 | 626,695 | 1,894,888 | 613,164 | 1,785,083 |
Communications | 107,918 | 283,338 | 94,596 | 277,680 | 112,028 | 294,094 | 98,516 | 293,226 |
Data Processing | 852,039 | 2,290,397 | 770,293 | 2,089,172 | 768,596 | 2,056,241 | 739,835 | 2,061,273 |
Advertising, Promotions and Publicity | 99,153 | 300,113 | 112,561 | 323,764 | 146,665 | 404,418 | 141,949 | 417,621 |
Rentals | 211,832 | 606,976 | 197,506 | 592,771 | 213,822 | 612,027 | 199,936 | 604,073 |
Transportation and Travel | 22,690 | 59,840 | 16,303 | 62,279 | 31,130 | 78,865 | 19,755 | 78,308 |
Financial System Services | 75,855 | 226,112 | 61,443 | 190,877 | 95,503 | 282,119 | 75,542 | 244,055 |
Security and Money Transport | 133,457 | 406,529 | 141,933 | 433,675 | 133,822 | 407,997 | 142,223 | 434,497 |
Asset Maintenance and Upkeep | 73,461 | 218,475 | 75,364 | 206,704 | 79,431 | 236,298 | 82,632 | 229,756 |
Water, Electricity and Gas | 40,284 | 135,491 | 39,997 | 139,265 | 41,118 | 138,439 | 40,634 | 142,006 |
Materials | 28,251 | 62,279 | 4,258 | 44,461 | 32,766 | 73,324 | 8,829 | 53,946 |
Others | 262,603 | 672,948 | 194,722 | 487,443 | 256,722 | 690,677 | 273,354 | 713,993 |
Total | 3,152,185 | 9,867,560 | 2,872,688 | 8,152,541 | 3,226,086 | 10,271,163 | 3,210,003 | 9,343,485 |
(1) Includes amortization of goodwill on investment in Getnet, recognized in profit or loss in March 2021, upon the spin-off of Banco Santander and transfer of the spun-off portion to Getnet (see note 13.c).
25. Other Operating Income
Bank | Consolidated | |||||||
07/01 to 9/30/2021 | 01/01 to 9/30/2021 | 07/01 to 9/30/2020 | 01/01 to 9/30/2020 | 07/01 to 9/30/2021 | 01/01 to 9/30/2021 | 07/01 to 9/30/2020 | 01/01 to 9/30/2020 | |
Net Income Pension and Capitalization | - | - | - | - | 150,861 | 423,245 | 156,350 | 404,024 |
Reversal of Operating Provisions - Fiscal (Note 19.c) | - | - | 187,282 | 199,760 | - | - | 183,709 | 203,992 |
Reversal of Provision for Financial Guarantees Provided (Note 18.a) | - | - | 7,327 | 7,327 | - | - | 7,327 | 7,327 |
Monetary Adjustment of Escrow Deposits | 155,234 | 244,390 | 9,562 | 203,662 | 226,913 | 333,061 | 12,592 | 235,032 |
Recoverable Taxes | 8,159 | 155,565 | 8,371 | 112,621 | 14,168 | 169,741 | 12,009 | 133,143 |
Recovery of Charges and Expenses | 216,416 | 806,832 | 208,814 | 809,875 | 160,231 | 594,908 | 184,229 | 658,510 |
Active Monetary Changes | - | - | - | - | - | - | - | 3 |
Others | 407,118 | 1,083,985 | 712,893 | 2,134,235 | 423,057 | 2,112,077 | 959,637 | 3,052,795 |
Total | 786,927 | 2,290,772 | 1,134,249 | 3,467,480 | 975,230 | 3,633,032 | 1,515,853 | 4,694,826 |
26. Other Operating Expenses
Bank | Consolidated | |||||||
07/01 to 9/30/2021 | 01/01 to 9/30/2021 | 07/01 to 9/30/2020 | 01/01 to 9/30/2020 | 07/01 to 9/30/2021 | 01/01 to 9/30/2021 | 07/01 to 9/30/2020 | 01/01 to 9/30/2020 | |
Operating Provisions | ||||||||
Fiscal (Note 19.c) | 36,500 | 63,539 | - | - | 60,599 | 95,683 | - | - |
Labor (Note 19.c) | 287,338 | 764,512 | 205,056 | 719,009 | 301,648 | 783,688 | 221,375 | 756,160 |
Civil (Note 19.c) | 25,995 | 204,473 | 250,010 | 442,471 | 87,452 | 318,563 | 296,851 | 570,942 |
Credit Cards | 878,596 | 2,622,051 | 817,273 | 2,570,997 | 741,806 | 2,274,882 | 771,789 | 2,193,717 |
Actuarial Losses - Pension Plan | 45,974 | 157,077 | 55,962 | 194,347 | 45,419 | 155,807 | 55,946 | 195,414 |
Legal Fees and Costs | 35,050 | 126,145 | 29,856 | 71,756 | 35,662 | 126,670 | 30,425 | 75,308 |
Serasa and SPC (Credit Reporting Agency) | 32,253 | 90,379 | 18,256 | 43,341 | 32,824 | 93,682 | 18,660 | 44,914 |
Brokerage Fees | 11,557 | 50,365 | 20,922 | 61,772 | 11,557 | 49,587 | 20,045 | 60,942 |
Commissions | 376,172 | 968,013 | 267,326 | 568,958 | 736,454 | 1,945,174 | 553,969 | 1,482,937 |
Reversal of Provision for Financial Guarantees | 14,374 | 83,238 | - | - | 14,374 | 83,238 | - | - |
Others (1) | 1,241,294 | 2,800,477 | 421,020 | 2,867,006 | 1,800,465 | 4,740,025 | 900,128 | 4,332,401 |
Total | 2,985,103 | 7,930,269 | 2,085,681 | 7,539,657 | 3,868,260 | 10,666,999 | 2,869,188 | 9,712,735 |
(1) In the periods ended September 30, 2021 and 2020, mainly includes monetary restatement on provisions for legal and administrative proceedings and legal obligations, provisions for the benefit guarantee fund and other provisions.
27. Non-Operating Income
Bank | Consolidated | |||||||
07/01 to 9/30/2021 | 01/01 to 9/30/2021 | 07/01 to 9/30/2020 | 01/01 to 9/30/2020 | 07/01 to 9/30/2021 | 01/01 to 9/30/2021 | 07/01 to 9/30/2020 | 01/01 to 9/30/2020 | |
Result on sale of Investments | - | - | - | 168,588 | - | (59) | - | 168,588 |
Result on Sale of Other Assets | 13,039 | 61,930 | 15,273 | 45,880 | 11,826 | 57,391 | 14,256 | 35,406 |
Reversal (Recognition) of Allowance for Losses on Other Assets | (6,488) | (24,496) | 2,367 | 13,027 | (9,260) | (22,161) | 3,334 | 23,742 |
Expense on Assets Not in Use | (9,656) | (29,619) | (13,914) | (38,020) | (9,660) | (29,779) | (13,997) | (38,196) |
Gains (Losses) of Capital | 1,288 | (1,924) | 6,776 | 6,037 | 1,307 | (1,971) | 6,760 | 3,783 |
Other Income (Expenses) | 27,286 | 72,162 | 11,595 | 57,415 | 28,969 | 47,838 | 5,519 | 59,132 |
Total | 25,469 | 78,053 | 22,098 | 252,928 | 23,182 | 51,259 | 15,872 | 252,455 |
28. Employee Benefit Plans - Post-Employment Benefits
a) Share-Based Compensation
Banco Santander has long-term compensation programs linked to the performance of the market price of its shares. Members of Banco Santander's Executive Board are eligible for these plans, in addition to the participants who have been determined by the Board of Directors, whose choice will consider the seniority of the group. The members of the Board of Directors only participate in said plans when they hold positions on the Executive Board.
Program | Settlement Type | Period Vesting | Exercise/Settlement Period | 01/01 to | 01/01 to | |||||||||
Local | Santander Actions (Brazil) | 01/2019 to 12/2021 | 2022 and 2023 | R$ 4,216,667 | (*) | $4,550,000 | ||||||||
01/2020 to 12/2022 | 2023 | $3,668,000 | (*) | $4,000,000 | ||||||||||
01/2020 to 12/2022 | 2023 and 2024 | $3,326,667 | (*) | R$5,270,000 | ||||||||||
01/2021 to 06/2024 | 2024 | $10,150,000 | (*) | R$ - | ||||||||||
01/2021 to 12/2023 | 2023 | R$1,500,000 | (*) | R$ - | ||||||||||
07/2019 to 06/2022 | 2022 | 123,158 | SANB11 | 123,158 | ||||||||||
09/2020 to 09/2022 | 2022 | 351,352 | SANB11 | 450,737 | ||||||||||
01/2020 to 09/2023 | 2023 | 225,961 | SANB11 | 281,030 | ||||||||||
01/2021 to 12/2022 | 2023 | 177,252 | SANB11 | - | ||||||||||
01/2021 to 12/2023 | 2024 | 327,065 | SANB11 | - | ||||||||||
01/2021 to 01/2024 | 2024 | 35,244 | SANB11 | - | ||||||||||
Global | Santander Spain shares and stock options | 2023 | 309,576 | SAN (**) | 318,478 (**) | |||||||||
2023, with a limit for exercising the options until 2030 | 1,618,445 | Options without SAN (**) | 1,664,983 (**) | |||||||||||
02/2024 | 135,632 | SAN (**) | - | |||||||||||
02/2024, com limite para exercício das opções até 02/2029 | 404,630 | Opções s/ SAN (**) | - | |||||||||||
Balance of Plans on September 30, 2021 | R$22,861,333 | (*) | R$13,820,000 (*) | |||||||||||
1,240,033 | SANB11 | 854,927 SANB11 | ||||||||||||
445,208 | SAN | 318,478 SAN | ||||||||||||
2,023,075 | Opções s/ SAN | 1,664,983 Options without SAN |
(*) Plan target in Reais, to be converted into SANB11 shares according to the achievement of the plan's performance indicators at the end of the vesting period, based on the quotation of the last 15 trading sessions of the month immediately preceding the grant.
(**) Target of the plan in SAN shares and options, to be paid in cash at the end of the vesting period, according to the achievement of the plan's performance indicators.
Our long-term programs are divided into Local and Global plans, with specific performance indicators and condition of maintaining the participant's employment relationship until the payment date in order to be entitled to receive.
The calculation of payment for the plans is based on the percentage of achievement of the indicators applied to the reference value (target), with the Local plans being paid in SANB11 units and the Global plans in shares and options of Grupo Santander (SAN).
Each participant has a reference value defined in cash, converted into SANB11 units or into shares and options of Grupo Santander (SAN), normally based on the quotation of the last 15 trading sessions of the month immediately preceding the granting of each plan. At the end of the vesting period, the payment of either the resulting shares in the case of local plans, or the cash value corresponding to the shares/options of the global plans, is made with a 1-year restriction, and this payment is still subject to the application of the Malus clauses/Clawback, which may reduce or cancel the shares to be delivered in cases of non-compliance with internal rules and exposure to excessive risks.
a.1) Impact on Income
The impacts on the result are recorded in the Personnel Expenses item, as follows:
Bank | Consolidated | |||||||||||||
01/01 to | 01/01 to 9/30/2020 | 01/01 to | 01/01 to | |||||||||||
Program | Settlement Type | |||||||||||||
Local | Santander Shares (Brazil) | 13,905 | - | 14,682 | - | |||||||||
Global | Santander Spain Shares and Stock Options | 2,324 | - | 2,738 | - |
|
a.2) Variable Remuneration Referenced to Shares
The long-term incentive plan (deferral) sets forth the requirements for payment of future deferred installments of variable remuneration, considering the long-term sustainable financial bases, including the possibility of applying reductions or cancellations due to the risks assumed and fluctuations the cost of capital.
The variable remuneration plan with payment referenced in Banco Santander shares is divided into 2 programs: (i) Identified Collective and (ii) Other Employees. The impacts on the result are accounted for under Personnel Expenses, as follows:
Bank | Consolidated | |||||||||||
Program | Participant | Liquidity Type | 01/01 to 9/30/2021 | 01/01 to 9/30/2020 | 01/01 to 9/30/2021 | 01/01 to 9/30/2020 | ||||||
Collective Identified | Members of the Executive Committee, Statutory Officers and other executives who assume significant and responsible risks of control areas | 50% in cash indexed to 100% of CDI and 50% in shares (Units SANB11) | 9,199 | 3,643 | 6,597 | 2,235 | ||||||
Unidentified Collective | Management-level employees and employees who are benefited by the Deferral Plan | 50% in cash indexed to 100% of CDI and 50% in shares (Units SANB11) | 8,224 | 2,771 | 7,488 | 2,716 |
29. Risk Management, Capital and Sensitivity Analysis
a) Risk Management Structure
Banco Santander in Brazil follows the model based on a prudent risk management. It has specialized management structure for each risk listed below, as well as an area that carries out the Integrated Risk Management of the Group, disseminates Risk Pro Culture, manages risk self-assessment and controls Risk Appetite (RAS) - which is approved by the Board of Directors -, attending the requirements of the local regulator and the international good practices, aiming to protect capital and ensure business profitability.
The fundamental principles that rule the risk governance model are:
• All employees are responsible for the management of risk;
• Senior Management Engagement;
• Independence of risk control and management functions;
• Comprehensive approach to management and control of risks;
• Risk management and control must be based on timely, accurate and sufficiently granular management information.
A. Credit Risk
The credit risk management is based in monitoring of credit portfolio and new credit operation indicators. Considering the economic scenario, profitability and defaults projections are estimated under control of appetite for risk. These projections are the basis for a redefinition of credit policies, which affect both the credit evaluation for a specific customer as customers with similar profile.
Another relevant aspect is the preventive management of credit, which is fundamental in maintaining the quality of Banco Santander's portfolio. The monitoring of the customer portfolio is a daily routine of the entire commercial area, with the support of the central areas.
To measure the quality of a client’s or facility’s credit, the Bank uses its own models score/rating, made by Metodology and independent Validation areas.
On credit restructuring and recovery, the Bank uses specific collection teams, which may be:
• Internal teams specializing in with direct action against defaulting clients with delays exceeding 60 days and more significant amounts; and
• External partners specializing in collecting, notifying and filing high-risk clients.
Sale of non-performing loans portfolio is a recurrent part of the recovery strategy (only credit rights), but the Santander may maintain relationships and transactional means with assigned clients.
Besides, the bank constitutes provision in accordance with the current legislation of Bacen and National Monetary System (Note 8.e).
B. Market Risk Management
The management of the market risk consists on developing, measuring and monitoring the use of limits previously approved in internal committees, relevant to the value at risk of the portfolios, the sensitivities arising from variation in market data (interest rates, indices, prices, exchange rates, etc.), liquidity gaps, among others, which might affect the positions of Banco Santander's portfolios in the various markets where it operates.
C. Operational Risk and Internal Controls
Santander's operational risk management model is based on best practices and its premise is to evaluate, monitor, control, implement improvements to reduce exposure to risks and losses, in line with the risk appetite approved by the Board of Directors and adopting the definition of the Basel Committee and Central Bank of Brazil for operational risks. Our governance model is based on the three lines of defense and has people, structures, policies, methodologies and tools to support the adequate management of operational risk.
The Internal Controls Model is based on the methodology developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), covering the strategic, operational, financial disclosure and compliance components and allows compliance with the requirements of regulators BACEN, CVM, B3, SUSEP and Sarbanes Oxley - SOX (Security Exchange Commission).
D. Bank´s business is highly dependent on the proper functioning of information technology systems.
Our business is highly dependent on the ability of our information technology systems to accurately process a large number of transactions across numerous and diverse markets and products in a timely manner, and on our ability to rely on our digital technologies, computer and email services, software and networks, as well as on the secure processing, storage and transmission of confidential data and other information in our computer systems and networks. The proper functioning of our financial control, risk management, accounting, customer service and other data processing systems is critical to our business and our ability to compete effectively.
E. Compliance and Reputational Risk Management
Compliance risk management has a proactive focus on this risk, policies, implementation of process, including monitoring, training, advisory, risk assessment and corporate communication of standards and regulations to be applied to each businesses area of the Banco Santander.
F. Unit for the Anti Money Laundering (AML) and Coutering of Financing of Terrorism (CFT)
Area responsible for promoting the development of the prevention of money laundering and combating the financing of terrorism in the different business units, as well as responsible for the Bank's Know Your Customer guidelines, establishing policies, procedures, monitoring and culture related to the subject. Moreover, analyzing the AML/CFT risks in the products and services monitoring the product´s risk and transactions carried out.
G. Social and Environmental Risk
Banco Santander’s Social and Environmental Responsibility Policy (PRSA), which complies with National Monetary Council Resolution 4,327/2014 and the SARB 14 self-regulation issued by Febraban, establishes guidelines and consolidates specific policies for social-environmental practices used in business and stakeholder relations. These practices including social and environmental risk management, impacts and opportunities related themes, such as, adequacy in the concession or use of credit, supplier management and analysis of the social and environmental risk which is carried out through the analysis of the socio-environmental practices of wholesale and segment Empresas 3 retail clients, that have limits or credit risk greater than BRL5 million and are included in one of the 14 sectors of social and environmental attention. In other to mitigate operational, capital, credit and reputational risk. Since 2009 Santander is Equator Principles signatory, which standards are applied in order to mitigate social and environmental risks when financing big projects.
The commitments assumed in the PRSA are detailed in others Bank policies, such as, the Anti-Corruption Policy, Supplier Relationships and Homologation Policies and Social-Environmental Risk Policies, besides that the Private Social Investment Policy, which aims to guide the strategy of this topic and present guidelines for social programs that strengthen this strategy.
H. Structure of Capital Management
Santander adopts a robust governance that supports all processes related to effective capital management in order to:
• Clearly define the functions of each team involved in the capital management;
• Ensure that the capital metric limits established in management, risk appetite and the Risk Profile Assessment (RPA) are fulfilled;
• Ensure that the actions related to the institution's strategy consider the impacts generated in the capital allocation;
• Ensure that the Management actively participates in the management and is regularly informed about the behavior of the capital metrics.
At Banco Santander, there is an Executive Vice-President responsible for capital management appointed by the Board of Directors; in addition, there are institutional capital policies, which act as guidelines for capital management, control and reporting (thus fulfilling all the requirements defined in CMN Resolution No. 4,557 / 2017).
For further information, see the "Risk and Capital Management Structure - Resolution nº. 4,557 / BACEN" in "Corporate Governance" and "Risk Management" at https://www.ri.santander.com.br/
b) Operational Limits
Throughout 2021, the Capital Conservation Supplement goes through two increases, reaching 1.625% in April and 2.00% in October. Thus, in September the PR requirement is 10.625%, and at the end of 2021 it will be 11.00%. For September, 8.00% of the Minimum Reference Equity plus 1.625% of Additional Capital Conservation and 1.00% of Systemic Additional is considered, with the requirement of PR Level I of 8.625% and Minimum Principal Capital of 7.125%. By the end of 2021, the PR requirement reaches 11.0%, considering an 8.00% Minimum Reference Equity plus 2.00% Capital Conservation Additional and 1.00% Systemic Additional, with a requirement of PR Tier I and Minimum Principal Capital at the end of 2021 of 9.00% and 7.50%, respectively.
Continuing with the adoption of the rules established by CMN Resolution No. 4,192/2013, as of January 2015, the Prudential Consolidated, defined by CMN Resolution No. 4,280/2013, came into effect. The index is calculated on a consolidated basis based on information from the Prudential Consolidated, as shown below:
9/30/2021 | 12/31/2020 | |||
Tier I Regulatory Capital | 78,715,890 | 77,571,525 | ||
Principal Capital | 71,722,200 | 71,006,316 | ||
Supplementary Capital (Note 20) | 6,993,690 | 6,565,209 | ||
Tier II Regulatory Capital (Note 20) | 6,963,518 | 6,554,451 | ||
Regulatory Capital (Tier I and II) | 85,679,408 | 84,125,976 | ||
Credit Risk (1) | 519,781,855 | 478,303,523 | ||
Market Risk (2) | 20,833,251 | 15,846,255 | ||
Operational Risk | 58,499,845 | 57,419,401 | ||
Total RWA (3) | 599,114,951 | 551,569,179 | ||
Basel I Ratio | 13.14 | 14.06 | ||
Basel Principal Capital | 11.97 | 12.87 | ||
Basel Regulatory Capital | 14.30 | 15.25 |
(1) Exposures to credit risk subject to the calculation of capital requirement under the standardized approach (RWACPAD) are based on the procedures established by Bacen Circular 3644, of March 4, 2013 and its subsequent supplements through the wording of Bacen Circular 3,174 of August 20, 2014 and Bacen Circular 3,770 of October 29, 2015.
(2) Includes the installments for market risk exposures subject to variations in foreign currency coupon rates (RWAjur2), price indices (RWAjur3) and interest rate (RWAjur1/RWAjur4), of commodity prices (RWAcom), of the price of shares classified in the trading portfolio (RWAacs) and installments for exposure to gold, foreign currency and operations subject to exchange variation (RWAcam).
(3) Risk Weighted Assets or risk weighted assets.
Banco Santander publishes the Risk Management Report with information on risk management, a brief description of the Recovery Plan, capital management, PR and RWA. The report with more details on the assumptions, structure and methodologies can be found at the electronic address www.santander.com.br/ri.
Financial institutions are required to maintain the investment of funds in permanent assets in accordance with the adjusted Reference Equity level. The funds invested in permanent assets, calculated on a consolidated basis, are limited to 50% of the value of the Reference Equity adjusted in accordance with the regulations in force. Banco Santander complies with the established requirements.
c) Financial Instruments - Sensitivity Analysis
Risk management is focused on portfolios and risk factors, in accordance with Bacen regulations and good international practices.
The financial instruments are segregated in the trading and banking portfolios, as performed in the management of market risk exposure, in accordance with the best market practices and with the operations classification and capital management criteria of the Bacen's Standardized Basel Method. The trading portfolio consists of all transactions with financial instruments and commodities, including derivatives, held with the intention of trading. The banking portfolio consists of structural operations arising from the various business lines of Banco Santander and their possible hedges. Therefore, according to the nature of Banco Santander's activities, the sensitivity analysis was divided between the trading and banking portfolios.
Banco Santander performs the sensitivity analysis of financial instruments in accordance with CVM Instruction No. 475/2008, considering market information and scenarios that would negatively affect the Bank's positions.
The summary tables presented below summarize sensitivity values generated by Banco Santander's corporate systems, referring to the trading portfolio and the banking portfolio, for each of the portfolio scenarios on September 30, 2021.
Trading Portfolio | Consolidated | |||||||
Risk Factor | Description | Scenario 1 | Scenario 2 | Scenario 3 | ||||
Interest Rate - Real | Exposures subject to Changes in Interest Fixed Rate | (4,823) | (106,039) | (212,077) | ||||
Coupon Interest Rate | Exposures subject to Changes in Coupon Rate of Interest Rate | (537) | (6,960) | (13,919) | ||||
Coupon - US Dollar | Exposures subject to Changes in Coupon US Dollar Rate | (5,143) | (19,066) | (38,131) | ||||
Coupon - Other Currencies | Exposures subject to Changes in Coupon Foreign Currency Rate | (1,100) | (1,854) | (3,709) | ||||
Foreign Currency | Exposures subject to Foreign Exchange | (416) | (10,400) | (20,799) | ||||
Eurobond/Treasury/Global |
| (5,091) | (5,872) | (11,744) | ||||
Inflation | Exposures subject to Change in Coupon Rates of Price Indexes | (5,429) | (33,574) | (67,149) | ||||
Shares and Indexes | Exposures subject to Change in Shares Price | (1,515) | (37,875) | (75,749) | ||||
Commodities | Exposures subject to Change in Commodity Price | (1,156) | (28,892) | (57,784) | ||||
Total (1) | (25,210) | (250,531) | (501,062) |
(1) Amounts net of tax effects.
Scenario 1: shock of +10bps and -10bps in the interest curves and 1% for price changes (currencies and shares), considering the largest losses by risk factor.
Scenario 2: shock of +25% and -25% in all risk factors, considering the largest losses by risk factor.
Scenario 3: shock of +50% and -50% in all risk factors, considering the largest losses by risk factor.
Banking Portfolio | Consolidated | ||||||
Risk Factor | Description | Scenario 1 | Scenario 2 | Scenario 3 | |||
Interest Rate - Real | Exposures subject to Changes in Interest Fixed Rate | (59,126) | (1,514,440) | (3,446,996) | |||
TR and Long-Term Interest Rate - (TJLP) | Exposures subject to Change in Exchange TR and TJLP | (7,663) | (66,260) | (58,664) | |||
Inflation | Exposições sujeitas à Variação das Taxas de Cupons de Índices de Preços | (15,386) | (175,654) | (444,097) | |||
Coupon - US Dollar | Exposures subject to Changes in Coupon US Dollar Rate | (10,344) | (46,252) | (90,337) | |||
Coupon - Other Currencies | Exposures subject to Changes in Coupon Foreign Currency Rate | (3,811) | (4,612) | (9,267) | |||
Interest Rate Markets International | Exposures subject to Changes in Interest Rate Negotiated Roles in International Market | (30,354) | (69,752) | (143,075) | |||
Foreign Currency | Exposures subject to Foreign Exchange | 406 | 10,162 | 20,324 | |||
Total (1) | (126,277) | (1,866,809) | (4,172,112) |
(1) Amounts net of tax effects.
Scenario 1: shock of +10bps and -10bps in the interest curves and 1% for price changes (currencies and shares), considering the largest losses by risk factor.
Scenario 2: shock of +25% and -25% in all risk factors, considering the largest losses by risk factor.
Scenario 3: shock of +50% and -50% in all risk factors, considering the largest losses by risk factor.
30. Other information
a) Co-obligations and risks in guarantees provided to customers, recorded in memorandum accounts, reached the amount of R$51,804,910 (12/31/2020 - R$46,471,443) at the Bank and R$51,804,910 (12/31/2020 - R$46,471,443) in the Consolidated.
b) The total amount of investment funds and assets under management by the Santander Conglomerate is R$2,711,333 (12/31/2020 - R$2,716,477) and the total amount of investment funds and assets under management is R$210,223,826 (31 12/12/2020 - R$191,873,169) recorded in memorandum accounts.
c) The insurance in force on September 30, 2021, corresponding to coverage of fires, natural disasters and other risks related to properties, has a coverage value of R$9,214,986 (12/31/2020 - R$392,189) in the Bank and in the Consolidated. In addition, in the Bank and in the Consolidated on September 30, 2021, there are other policies in force to cover risks related to fraud, civil liability and other assets in the amount of R$1,546,051 (12/31/2020 - R$8,674,721).
d) In September 30, 2021 and December 31, 2020, there were no related asset transactions and no obligations for related asset transactions.
e) Clearing and Settlement of Obligations Agreements - CMN Resolution 3,263/2005 - Banco Santander has an agreement for clearing and settlement of obligations within the scope of the National Financial System (SFN), entered into with individuals and legal entities that are or are not members of the SFN, resulting in in greater guarantee of financial settlement, with the parties which have this type of agreement. These agreements establish that payment obligations to Banco Santander arising from credit and derivative transactions, in the event of default by the counterparty, will be offset against Banco Santander's payment obligations to the counterparty.
f) Other Commitments - Banco Santander has two types of lease contracts: cancelable and non-cancellable. The cancelables are properties, mainly used as branches, based on a standard contract, which can be canceled at will and includes the right of option to renew and readjustment clauses, framed in the concept of operational leasing. The total of future minimum payments for non-cancellable operating leases is shown below:
9/30/2021 | 12/31/2020 | |||
Up to 1 Year | 719,896 | 670,619 | ||
Between 1 to 5 Years | 1,495,799 | 1,607,995 | ||
More than 5 Years | 193,784 | 171,420 | ||
Total | 2,409,480 | 2,450,034 |
Additionally, Banco Santander has contracts with an indefinite term, in the amount of R$596 (12/31/2020 - R$880) corresponding to the monthly rent of contracts with this characteristic. Operating lease payments, recognized as expenses in 2021, were in the amount of R$369,591 (2020 - R$363,338).
Rental contracts will be readjusted annually, in accordance with current legislation, with the highest percentage being in accordance with the variation of the General Market Price Index (IGPM). The lessee is assured the right to unilaterally terminate these contracts, at any time, in accordance with contractual clauses and current legislation. Market Value of Financial Assets and Liabilities
g) Market value of assets and liabilities - Banco Santander classifies measurements at market value using the market value hierarchy that reflects the model used in the measurement process, and is in accordance with the following hierarchical levels:
Level 1: Determined based on public (unadjusted) price quotations in active markets for identical assets and liabilities, include government bonds, shares and listed derivatives. Highly liquid securities with prices observable in an active market are classified at level 1. At this level, most Brazilian Government Bonds (mainly LTN, LFT, NTN-B and NTN-F), stocks on the stock exchange were classified. and other securities traded on the active market. Derivatives traded on stock exchanges are classified at level 1 of the hierarchy.
Level 2: These are derivatives of data other than quoted prices included in Level 1 that are observable for the asset or liability, directly (such as prices) or indirectly (derived from prices). When price quotations cannot be observed, Management, using its own internal models, makes its best estimate of the price that would be set by the market. These models use data based on observable market parameters as an important reference. The best evidence of the fair value of a financial instrument at initial recognition is the transaction price, unless the fair value of the instrument can be obtained from other market transactions carried out with the same instrument or similar instruments or can be measured using a valuation technique in which the variables used include only observable market data, particularly interest rates. These securities are classified at level 2 of the fair value hierarchy and are mainly composed of government securities (repurchase agreements, LCI Cancelable and NTN) in a less liquid market than those classified at level 1. For over-the-counter derivatives, for the valuation of financial instruments (primarily swaps and options), observable market data are normally used, such as exchange rates, interest rates, volatility, correlation between indices and market liquidity. In the pricing of the aforementioned financial instruments, the Black-Scholes model methodology is used (exchange rate options, interest rate index options, caps and floors) and the present value method (discounting future values by curves market).
Level 3: These are derived from valuation techniques that include inputs for assets or liabilities that are not based on observable market variables (non-observable inputs). When there is information that is not based on observable market data, Banco Santander uses models developed internally to properly measure the fair value of these instruments. Level 3 mainly includes Instruments with low liquidity. Derivatives not traded on an exchange and that do not have observable information in an active market were classified as level 3, and are composed, including exotic derivatives.
In Thousands of Brazilian Real | 2021 | |||||||||
Assets | Carrying | Maket Value | 1 | 2 | 3 | |||||
Interbank Investments | 49,299,674 | 49,299,674 | 3,080,756 | 39,570,844 | 6,648,074 | |||||
Securities and Debt Instruments | 233,845,351 | 235,003,181 | 184,130,199 | 14,456,640 | 36,416,342 | |||||
Derivatives Financial Instruments | 28,186,315 | 28,186,315 | - | 27,739,085 | 447,230 | |||||
Lending Operations | 375,968,143 | 345,117,955 | - | - | 345,117,955 | |||||
Total | 687,299,483 | 657,607,125 | 187,210,955 | 81,766,569 | 388,629,601 | |||||
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In Thousands of Brazilian Real | 2020 | |||||||||
Assets | Carrying | Maket Value | 1 | 2 | 3 | |||||
Interbank Investments | 69,698,253 | 69,698,253 | - |
| 62,601,986 |
| 7,096,267 | |||
Securities and Debt Instruments | 233,248,338 |
| 234,844,495 |
| 135,118,884 |
| 65,394,153 |
| 34,331,458 | |
Derivatives Financial Instruments | 32,840,075 |
| 32,840,075 |
| - |
| 32,258,845 |
| 581,230 | |
Lending Operations | 338,110,717 |
| 341,503,600 |
| - |
| - |
| 341,503,600 | |
Total | 673,897,383 | 678,886,423 |
| 135,118,884 | 160,254,984 | 383,512,555 |
We present below a comparison between the carrying amounts of the Bank's financial liabilities measured at a value other than the market value and their respective market values on September 30, 2021, and December 31, 2020:
In Thousands of Brazilian Real | 2021 | |||||||||
Market Value | ||||||||||
Liabilities | Carrying Amount | 1 | 2 | 3 | ||||||
Deposits | 397,826,800 | 397,781,250 | - | - | 397,781,250 | |||||
Money Market Funding | 128,983,722 | 128,971,722 | - | 128,971,722 | - | |||||
Borrowings and Onlendings | 86,622,447 | 86,622,447 | - | - | 86,622,447 | |||||
Funds from Acceptance and Issuance of Securities | 81,890,963 | 80,911,660 | - | - | 80,911,660 | |||||
Derivatives Financial Instruments | 31,298,091 | 31,298,091 | - | 30,834,586 | 463,505 | |||||
Debt Instruments Eligible to Compose Capital | 13,957,208 | 13,957,208 | - | - | 13,957,208 | |||||
Total | 740,579,231 | 739,542,378 | - | 159,806,308 | 579,736,070 |
In Thousands of Brazilian Real | 2020 | |||||||||
Market Value | ||||||||||
Liabilities | Carrying Amount | 1 | 2 | 3 | ||||||
Deposits | 390,051,798 | 390,093,916 | - | - | 390,093,916 | |||||
Money Market Funding | 154,997,017 | 154,994,486 | - | 154,994,486 | - | |||||
Borrowings and Onlendings | 67,759,950 | 67,759,950 | - | - | 67,759,950 | |||||
Funds from Acceptance and Issuance of Securities | 70,627,767 | 71,017,560 | - | - | 71,017,560 | |||||
Derivatives Financial Instruments | 36,269,465 | 36,269,465 | - | 35,642,321 | 627,144 | |||||
Debt Instruments Eligible to Compose Capital | 13,119,660 | 13,119,660 | - | - | 13,119,660 | |||||
Total | 732,825,657 | 733,255,037 | - | 190,636,807 | 542,618,230 |
Management revised the criteria assigned to classify the level of assets measured at market value, presented exclusively for disclosure purposes and verified the need to change between level 3 and level 1 and from level 2 to level 1 in light of the observable data of Marketplace.
h) Recurring/non-recurring results
Bank | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Recurring Income | Non-Recurring Income | 01/01 to 9/30/2021 | Recurring Income | Non-Recurring Income | 01/01 to 9/30/2020 | ||||||||||||||||||
Income Related to Financial Operations | 62,351,792 | - | 62,351,792 | 93,353,547 | - | 93,353,547 | |||||||||||||||||
Expenses on Financial Operations | (37,801,703) | - | (37,801,703) | (90,733,774) | - | (90,733,774) | |||||||||||||||||
Gross Income Related to Financial Operations | 24,550,089 | - | 24,550,089 | 2,619,773 | - | 2,619,773 | |||||||||||||||||
Other Operating Revenues (Expenses) a/b | (7,153,234) | (1,162,400) | (8,315,634) | (5,501,731) | (375,315) | (5,877,046) | |||||||||||||||||
Operating Income | 17,396,855 | (1,162,400) | 16,234,455 | (2,881,958) | (375,315) | (3,257,273) | |||||||||||||||||
Non-Operating Income | 78,053 | - | 78,053 | 85,928 | 167,000 | 252,928 | |||||||||||||||||
Income Before Taxes on Income and Profit Sharing | 17,474,908 | (1,162,400) | 16,312,508 | (2,796,030) | (208,315) | (3,004,345) |
| ||||||||||||||||
Income Tax and Social Contribution a/b/c | (3,579,479) | (94,747) | (3,674,226) | 13,972,419 | 10,312 | 13,982,731 | |||||||||||||||||
Profit Sharing | (1,318,592) | - | (1,318,592) | (1,291,581) | - | (1,291,581) | |||||||||||||||||
Net Income | 12,576,837 | (1,257,147) | 11,319,690 | 9,884,808 | (198,003) | 9,686,805 | |||||||||||||||||
Consolidated | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Recurring Income | Non-Recurring Income | 01/01 to 9/30/2021 | Recurring Income | Non-Recurring Income | 01/01 to 9/30/2020 | ||||||||||||||||||
Income Related to Financial Operations | 69,809,071 | - | 69,809,071 | 101,346,732 | - | 101,346,732 | |||||||||||||||||
Expenses on Financial Operations | (40,047,749) | - | (40,047,749) | (94,402,806) | - | (94,402,806) | |||||||||||||||||
Gross Income Related to Financial Operations | 29,761,322 | - | 29,761,322 | 6,943,926 | - | 6,943,926 | |||||||||||||||||
Other Operating Revenues (Expenses) a/b | (10,378,168) | (1,162,400) | (11,540,568) | (8,341,240) | (375,315) | (8,716,555) | |||||||||||||||||
Operating Income | 19,383,154 | (1,162,400) | 18,220,754 | (1,397,314) | (375,315) | (1,772,629) | |||||||||||||||||
Non-Operating Income | 51,259 | - | 51,259 | 85,455 | 167,000 | 252,455 | |||||||||||||||||
Income Before Taxes on Income and Profit Sharing | 19,434,413 | (1,162,400) | 18,272,013 | (1,311,859) | (208,315) | (1,520,174) |
| ||||||||||||||||
Income Tax and Social Contribution a/b/c | (5,457,277) | (94,747) | (5,552,024) | 12,642,935 | 10,312 | 12,653,247 | |||||||||||||||||
Profit Sharing | (1,441,638) | - | (1,441,638) | (1,421,238) | - | (1,421,238) | |||||||||||||||||
Non-Controlling Interest | (87,065) | - | (87,065) | (101,124) | - | (101,124) | |||||||||||||||||
Net Income | 12,448,433 | (1,257,147) | 11,191,286 | 9,808,714 | (198,003) | 9,610,711 |
a) Amortization of goodwill on investment recognized as Other Operating Expenses in the amount before taxes of R$1,162,400 (2020 - R$275,315) in the Bank and in the Consolidated, with a net impact of R$1,093,414 (2020 - R$203,013).
b) Action to Support the Fight against COVID-19 recognized as other operating expenses in 2020, with an impact before taxes amounting to R$100,000 (net of taxes, R$94,190), in the Bank and in the Consolidated.
c) Write-off of tax loss arising from the spun-off equity of Getnet (See Note 13.) in the amount of R$163,732, and tax effect on the amortization of goodwill on investment, in the amount of R$68,986.
31. Subsequent Events
The Board of Directors, at a meeting held on October 26, 2021, approved the proposal of the Executive Board, ad referendum of the Annual General Meeting to be held in 2022, for the distribution of Interim Dividends, in the amount of R$3,0 billion, based on the profit for the year calculated up to the balance sheet of September 30, 2021. Shareholders who are registered in the Bank's records at the end of November 4, 2021, (inclusive) will be entitled to the Dividends. Thus, from November 5, 2021 (inclusive), the Bank's shares will be traded “Ex-Dividends”. The amount of Dividends will be paid as of December 3, 2021, and fully imputed to the mandatory dividends to be distributed by the Bank, referring to fiscal year 2021, without any remuneration by way of monetary restatement. The deliberation had the favorable opinion of the Fiscal Council, according to the meeting held on the same date.
Acquisition of Equity Interest in Liderança Serviços Especializados em Cobranças Ltda. and Fozcobra Agência de Cobranças Ltda.
On October 1, 2021, Atual Serviços de Recuperação de Créditos e Meios Digitais S.A. (Atual) acquired a 100.00% equity interest in Liderança Serviços Especializados em Cobranças Ltda. (Leadership) and, consequently, the indirect interest in its wholly owned subsidiary Fozcobra Agência de Cobranças Ltda. (Fozcobra), upon payment of R$235 million, arising from the capital increase carried out by Banco Santander at Atual on September 24, 2021. Continuous act, on October 4, 2021, the merger of Fozcobra into Liderança was formalized, with the respective extinction of Fozcobra.
Acquisition of Equity Interest in Solutions 4 Fleet Consultoria Empresarial Ltda.
On October 8, 2021, upon compliance with the applicable suspensive conditions, Aymoré Crédito, Financiamento e Investimento SA (Aymoré CFI) formalized the closing of the transaction relating to the acquisition of shares and subscription of a capital increase of Solution 4Fleet Consultoria Empresarial SA (S4F), now holding 80.00% of the shares issued by S4F.
Partial spin-off and segregation of Getnet Acquirência e Serviços para Meios de Pagamentos S.A.
After the approval of the studies and favorable proposal of the Board of Directors of Santander Brasil, on March 31, 2021, the shareholders of Santander Brasil approved the partial spin-off of Santander Brasil, for the segregation of shares owned by them issued by Getnet Adquirência e Serviços para Meios de Pagamentos S.A. (“Getnet”), with a version of the split portion for Getnet itself. The delivery of the Getnet shares to the shareholders of Santander Brasil in proportion to their participation in the capital of Santander Brasil and the shares and Units of Santander Brasil on the base date of October 15, 2021, took place on October 18, 2021.
As a result of the Spin-off, Santander Brasil's share capital was reduced by a total amount of two billion reais, without the cancellation of shares, changing Santander Brasil's share capital from fifty-seven billion reais to fifty-five billion reais.
Composition of Management Bodies
Administrative Council
Álvaro Antônio Cardoso de Souza – President (independente)
Sérgio Agapito Lires Rial - Vice-President
Deborah Patricia Wright - Counselor (independent)
Deborah Stern Vieitas - Counselor (independent)
Jose Antonio Alvarez Alvarez – Counselor
José de Paiva Ferreira – Counselor
José Garcia Cantera – Counselor
Marília Artimonte Rocca - Counselor (independent)
Pedro Augusto de Melo - Counselor (independent)
Audit Committee
Deborah Stern Vieitas - Coordinator
Maria Elena Cardoso Figueira - Qualified Technical Member
René Luiz Grande - Member
Vania Maria da Costa Borgerth - Member
Risk and Compliance Committee
Pedro Augusto de Melo - Coordinator
Álvaro Antonio Cardoso de Souza - Member
José de Paiva Ferreira - Member
Virginie Genès-Petronilho - Member
Sustainability Committee
Marilia Artimonte Rocca - Coordinator
Carlos Aguiar Neto - Member
Carlos Rey de Vicente - Member
Mario Roberto Opice Leão - Member
Tasso Rezende de Azevedo - Member
Nomination and Governance Committee
Álvaro Antonio Cardoso de Souza - Member
Deborah Patricia Wright - Member
Luiz Fernando Sanzogo Giogi - Member
Compensation Committee
Deborah Patricia Wright - Coordinator
Álvaro Antonio Cardoso de Souza - Member
Luiz Fernando Sanzogo Giogi - Member
Fiscal Council
João Guilherme de Andrade So Consiglio - Effective Member (President)
Antonio Melchiades Baldisera - Effective member
Louise Barsi - Effective Member
Manoel Marcos Madureira - Substitute
Luciano Faleiros Paolucci - Substitute
Valmir Pedro Rossi – Substitute
*The Fiscal Council was installed at the Annual General Meeting held on April 30, 2021, and the members were approved by the Central Bank of Brazil on July 22, 2021, the date on which they took office in their respective positions, with term of office until the Meeting Ordinary General Meeting of 2022.
Executive Board
Chief Executive Officer
Sérgio Agapito Lires Rial
Vice-President Executive Officer and Investor Relations Officer
Angel Santodomingo Martell
Vice-President Executive Officers
Alberto Monteiro de Queiroz Netto
Alessandro Tomao
Antonio Pardo de Santayana Montes
Carlos Rey de Vicente
Ede Ilson Viani
Jean Pierre Dupui
Juan Sebastian Moreno Blanco
Mario Roberto Opice Leão
Patrícia Souto Audi
Vanessa de Souza Lobato Barbosa
Officers without specific designation
Adriana Marques Lourenço de Almeida
Amancio Acúrcio Gouveia
Ana Paula Vitali Janes Vescovi
André de Carvalho Novaes
Carlos Aguiar Neto
Cassio Schmitt
Claudenice Lopes Duarte
Daniel Fantoni Assa
Elita Vechin Pastorelo Ariaz
Francisco Soares da Silva Junior
Franco Luigi Fasoli
Geraldo José Rodrigues Alckmin Neto
Germanuela de Almeida de Abreu
Gustavo Alejo Viviani
Igor Mario Puga
Jean Paulo Kambourakis
João Marcos Pequeno De Biase
José Teixeira de Vasconcelos Neto
Luis Guilherme Mattos de Oliem Bittencourt
Luiz Masagão Ribeiro Filho
Marcelo Augusto Dutra Labuto
Marilize Ferrazza Santinoni
Marino Alexandre Calheiros Aguiar
Ramón Sanchez Díez
Ramon Sanchez Santiago
Reginaldo Antonio Ribeiro
Ricardo Olivare de Magalhães
Roberto Alexandre Borges Fischetti
Robson de Souza Rezende
Sandro Kohler Marcondes
Sandro Rogério da Silva Gamba
Thomas Gregor Ilg
Vítor Ohtsuki
Accountant
Diego Santos Almeida – CRC Nº 1SP316054/O-4
Declaration of directors on the financial statements
Members of the Executive Board of Banco Santander on September 30, 2021:
Chief Executive Officer
Sérgio Agapito Lires Rial
Vice-President Executive Officer and Investor Relations Officer
Angel Santodomingo Martell
Vice-President Executive Officers
Alberto Monteiro de Queiroz Netto
Alessandro Tomao
Antonio Pardo de Santayana Montes
Carlos Rey de Vicente
Ede Ilson Viani
Jean Pierre Dupui
Juan Sebastian Moreno Blanco
Mário Roberto Opice Leão
PatríciaSoutoAudi
Vanessa de Souza Lobato Barbosa
Officers without specific designation
Adriana Marques Lourenço de Almeida
Amancio Acúrcio Gouveia
Ana Paula Vitali Janes Vescovi
André de Carvalho Novaes
Carlos Aguiar Neto
Cassio Schmitt
Claudenice Lopes Duarte
Daniel Fantoni Assa
Elita Vechin Pastorelo Ariaz
Francisco Soares da Silva Junior
Franco Luigi Fasoli
Geraldo José Rodrigues Alckmin Neto
Germanuela de Almeida de Abreu
Gustavo Alejo Viviani
Igor Mario Puga
Jean Paulo Kambourakis
João Marcos Pequeno De Biase
José Teixeira de Vasconcelos Neto
Luis Guilherme Mattos de Oliem Bittencourt
Luiz Masagão Ribeiro Filho
Marcelo Augusto Dutra Labuto
Marilize Ferrazza Santinoni
Marino Alexandre Calheiros Aguiar
Ramón Sanchez Díez
Ramon Sanchez Santiago
Reginaldo Antonio Ribeiro
Ricardo Olivare de Magalhães
Roberto Alexandre Borges Fischetti
Robson de Souza Rezende
Rogério Magno Panca
Sandro Kohler Marcondes
Sandro Mazerino Sobral
Sandro Rogério da Silva Gamba
Thomas Gregor Ilg
Vítor Ohtsuki
Directors' Statement on Independent Auditors
For the purposes of complying with the provisions of article 25, paragraph 1, item V, of the Securities and Exchange Commission (CVM) Instruction 480, of December 7, 2009, the members of the Executive Board of Banco Santander (Brasil) SA (Banco Santander or Company) declare that they have discussed, reviewed and agreed with the Financial Statements by the Banco Santander BRGAAP criterion, which includes the Independent Auditors' Report, related to the Financial Statements by Banco Santander BRGAAP criterion, for the year ended september 30, 2021 , and the documents that comprise them, being: Performance Comments, balance sheets, income statement, statement of changes in equity, statement of cash flows, statement of added value and explanatory notes, which were prepared in accordance with accounting practices adopted in Brazil, in accordance with Law No. 6,404, of December 14, 1976 (Brazilian Corporate Law) tions), the rules of the National Monetary Council, the Central Bank of Brazil in accordance with the model of the Accounting Plan of the Institutions of the National Financial System (COSIF) and other applicable regulations and legislation. The aforementioned Financial Statements and the documents that comprise them, were the subject of a report without reservation by the Independent Auditors regarding the recommendation for approval issued by the Company's Audit Committee and the favorable opinion of the Company's Fiscal Council.
Members of the Executive Board of Banco Santander on September 30, 2021:
Chief Executive Officer
Sérgio Agapito Lires Rial
Vice-President Executive Officer and Investor Relations Officer
Angel Santodomingo Martell
Vice-President Executive Officers
Alberto Monteiro de Queiroz Netto
Alessandro Tomao
Antonio Pardo de Santayana Montes
Carlos Rey de Vicente
Ede Ilson Viani
Jean Pierre Dupui
Juan Sebastian Moreno Blanco
Mário Roberto Opice Leão
PatríciaSoutoAudi
Vanessa de Souza Lobato Barbosa
Officers without specific designation
Adriana Marques Lourenço de Almeida
Amancio Acúrcio Gouveia
Ana Paula Vitali Janes Vescovi
André de Carvalho Novaes
Carlos Aguiar Neto
Cassio Schmitt
Claudenice Lopes Duarte
Daniel Fantoni Assa
Elita Vechin Pastorelo Ariaz
Francisco Soares da Silva Junior
Franco Luigi Fasoli
Geraldo José Rodrigues Alckmin Neto
Germanuela de Almeida de Abreu
Gustavo Alejo Viviani
Igor Mario Puga
Jean Paulo Kambourakis
João Marcos Pequeno De Biase
José Teixeira de Vasconcelos Neto
Luis Guilherme Mattos de Oliem Bittencourt
Luiz Masagão Ribeiro Filho
Marcelo Augusto Dutra Labuto
Marilize Ferrazza Santinoni
Marino Alexandre Calheiros Aguiar
Ramón Sanchez Díez
Ramon Sanchez Santiago
Reginaldo Antonio Ribeiro
Ricardo Olivare de Magalhães
Roberto Alexandre Borges Fischetti
Robson de Souza Rezende
Rogério Magno Panca
Sandro Kohler Marcondes
Sandro Mazerino Sobral
Sandro Rogério da Silva Gamba
Thomas Gregor Ilg
Vítor Ohtsuki
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: October 26, 2021
Banco Santander (Brasil) S.A. | ||
By: | /S/ Amancio Acurcio Gouveia | |
| Amancio Acurcio Gouveia | |
| ||
By: | /S/ Carlos Rey de Vicente | |
| Carlos Rey de Vicente |