Santander Brasil(BSBR)2024-07-24 19:40Financial Data and Key Metrics Changes - The company's profitability year-on-year is 15.5%, an increase from 14.1% in the previous quarter, indicating a positive trend in ROE above the cost of capital [29][57] - Total revenues increased by 12% year-on-year, driven by NII and a strong performance in fees and commissions [90] - Provisions dropped in both quarterly and annual comparisons, reflecting improved credit quality and management [56][88] Business Line Data and Key Metrics Changes - The loan portfolio grew by 8% year-on-year, with notable increases in the credit card portfolio (4% growth) and payroll loans (2% growth) [84] - Fees and commissions reached all-time highs this quarter, with quarterly growth of 6% and annual growth of almost 18% [54] - The consumer finance segment is experiencing significant transformation and growth, particularly in auto loans, which grew 4.5% in the quarter [85][39] Market Data and Key Metrics Changes - The company holds a 21% market share in consumer finance and originates nearly 90% of all auto loans in Brazil, indicating strong market positioning [39] - The NPL (Non-Performing Loans) ratio improved to 1.2%, reflecting better quality in origination [88] - The loan-to-deposits ratio reached an all-time high of 93%, showcasing effective funding management [87] Company Strategy and Development Direction - The company aims to diversify its funding mix from wholesale to retail, focusing on enhancing its investment platform [45] - A strategic emphasis is placed on customer centricity, aiming to improve client relationships and experiences through technology [59][65] - The company is committed to achieving mid to high teens ROE in the coming quarters, with a long-term goal of reaching around 20% [14][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the dynamic and complex nature of the business environment, emphasizing the need for continuous innovation to meet consumer demands [2] - The company is focused on maintaining profitability while pursuing growth, ensuring a balanced approach to portfolio management [11][13] - Management expressed confidence in achieving consistent growth and solid results in the upcoming quarters, despite market volatility [61][92] Other Important Information - The company has launched a new digital experience aimed at reactivating inactive customers, which is expected to enhance engagement and profitability [68][81] - The introduction of the "Free" offering is seen as a powerful tool for mass income offerings, aimed at increasing activation and conversion rates [120] Q&A Session Summary Question: What is the strategy for SMEs and the increase in delinquency? - Management aims to double the SME business in the coming years, emphasizing improved risk management through a network of experts [124][126] Question: How will fees and commissions grow in the future? - Growth in fees and commissions is driven by new client acquisition and adjustments for inflation, with a positive outlook for both individuals and companies [113][114] Question: What is the outlook for credit card performance? - The credit card segment is expected to grow with a focus on quality and client satisfaction, moving towards a more integrated product offering [104][107]