Banco Santander (Brasil) S.A. (BSBR) Q2 2026 Earnings Call Transcript

Videoconference Transcript 2Q26 Results Santander July 29, 2026 Camila Stolf: Good morning, everyone. Thank you for joining us for our second-quarter 2026 earnings videoconference. We are live here from our headquarters in São Paulo and will divide this event into two parts. First, our CFO Carlos Muñiz will give a detailed presentation of our performance and of the strategic directions for the coming periods. After that, we will have the Q&A session. I will now go over a few instructions. We have three audio options on the screen: content in Portuguese, content in English, or the original audio. To choose your option, simply click the button at the bottom center of your screen. To ask a question, click the hand icon, also at the bottom of your screen. The presentation we are about to deliver is already available for download on our Investor Relations website. I now hand it over to Carlos to begin the presentation. Carlos Muñiz: Thank you very much, Camila. Good morning, everyone. Unfortunately, we don't have a button that would let me speak in Spanish, so I'll do my best in Portuguese. I hope you catch all the messages, and if not, we'll provide the appropriate clarifications during the Q&A. I'll start with the summary of the main results for the quarter. We closed the quarter with recurring net profit of R$ 3 billion and ROE of 12.5%. The result reflects a more challenging macroeconomic environment, especially due to the increase in the cost of risk. It also reflects the decisions we've been making in managing the balance sheet. We are rebalancing the product and client mix, always seeking a better risk-return balance. This move may generate short-term impacts on revenues, but it is fundamental to building a more balanced, more resilient, and more predictable operation. Our focus remains clear: to grow with quality and to sustain consistent profitability over the medium and long term. Moving to the next slide, we present the evolution of our client base and the initiatives aimed at deepening the relationship with clients. We closed the second quarter of 2026 with 76.2 million clients, a 6% growth over 12 months. As you'll recall, in the first quarter we already discussed the launch of Santander Rewards. The first vintages already show greater engagement, with a highlight on the growth in card spending. At the moment, 15% of the eligible base has joined the program. We also recorded a 30% advance in Pix key registrations. Rewards, combined with the use of artificial intelligence, should expand our capacity to generate value in each interaction. With this, we strengthen engagement, primacy, and the long-term relationship with clients. Let's talk a bit about the numbers. As we've been highlighting in recent quarters, we continue to advance the loan portfolio selectively. This evolution reflects our dynamic management of the portfolio and the permanent focus on risk-adjusted profitability. We maintain rigorous underwriting

Videoconference Transcript 2Q26 Results Santander July 29, 2026 criteria, which is why we observe different growth rates across products and segments. I want to make it clear that in every case we prioritize quality, pricing discipline, loyalty, and transactionality. On a year-on-year basis, I would highlight the 13% growth in cards, 15% growth in consumer finance, and 11% growth in small and mid-sized companies. In the individual’s segment, we remain attentive to the composition of the portfolio. We reduced exposure to higher-risk profiles, especially among clients with monthly income below R$ 4,000. In this group, the portfolio contracted by about 30% over the last 12 months. In mortgages, the highlight is Home Equity, with 40% growth over 12 months. Consumer finance also remains relevant, supported by a more qualified mix and by a greater share of new and electric vehicles. In large companies, we maintained a positive evolution, concentrated in the corporate segment and accompanied by pricing discipline. Overall, the portfolio reflects the choices we've been making to improve its composition and strengthen the relationship between risk and return. Next, we have client NII, which remains practically stable for the year, despite the reduction observed in the quarter. This movement has three main explanations. The first is the greater impact from the deferral of expenses with banking correspondents. The second is the lower funding result, due to the lower average CDI. And the third is the selectivity in origination that we mentioned on the previous slide. Combined the effects of the deferral and of the lower CDI impacted the spread by about 10 basis points. The NII also reflects the shift in mix toward the high-income segment. This audience has a structurally lower spread, roughly equivalent to half of that observed in low income. Therefore, its greater share is consistent with the rebalancing we are carrying out across the entire portfolio. In market NII, we had a slight improvement in the ALM results, partially offset by a weaker performance in market making activity. In funding, we continue to increase the share of retail funding in our mix. This strategy strengthens loyalty and transactionality with clients. Transactional deposits grew 18% over the last 12 months. This advance reinforces the evolution of primacy and the improvement in the composition of our funding. Turning to fees, and as a reflection of this movement, this line was also impacted by the greater selectivity in credit. Even so, we maintain good performance in cards and “consórcios”, both quarter on quarter and year on year. In cards, we continue to grow within our own client base, driven by increased transactionality.

Videoconference Transcript 2Q26 Results Santander July 29, 2026 In insurance, we observed better performance in non-credit-related business. In the lines linked to lending, the dynamics were influenced by the selectivity in origination and by the greater share of new vehicles in consumer finance. In current accounts, the increase in transactionality has expanded the fee-waiver benefits granted to clients. This movement helps explain the behavior of the line and, at the same time, evidences the advance of primacy with our clients. Turning to provisions, the quarter was impacted by some relevant effects, among them specific cases in wholesale and the provision balance adjustment resulting from the new write-off methodology. Together, these two factors totaled R$ 700 million. We also continue to observe pressure in the portfolios of smaller companies, in the agribusiness segment, and among low-income individual clients. This scenario required a higher level of provisioning. Part of this movement also stems from the more restrictive stance we are adopting in renegotiations. We have been requiring additional collateral or an upfront cash payment to formalize recovery agreements. This discipline may lead to short-term pressure, but it improves the quality of the renegotiated operations. On delinquency, we observed a favorable evolution in the short-term indicator. The long-term ratio also showed improvement. However, part of the variation is related to the adjustment in write-offs, whose effect was approximately 29 basis points on the total indicator. We continue to monitor these portfolios closely, carefully, and with discipline. Moving to the next point, let's look at the evolution of expenses. In the quarter, personnel and administrative expenses continued to perform favorably. Growth came in significantly below inflation, reflecting our discipline in cost management. The lower revenue generation pressured the efficiency ratio, which ended the period at 39.3%. But it's important to highlight that this evolution stems mainly from the dynamics of revenues. There was no change in our cost discipline, and we continue investing in the expansion of the businesses and in technology. Today, 100% of our employees have access to AI tools that support both the efficiency agenda and the growth agenda. At the same time, we have made progress in reducing the cost to serve. In the lowincome segment, this indicator has already declined by more than 30% over the past two years. In addition, the greater use of global platforms should enhance our operating leverage and accelerate this efficiency trajectory. To conclude, I present our income statement. We closed the quarter with recurring net profit of R$ 3 billion and ROE of 12.5%. The reduction in profit and profitability reflects a more challenging

Videoconference Transcript 2Q26 Results Santander July 29, 2026 macroeconomic environment. We had lower revenue growth and higher cost of risk. The latter was partially impacted by one-off effects, as I mentioned. Even so, our portfolio presents an increasingly favorable risk-return profile. We also have balanced funding in terms of instruments, clients, and prices. The quarter reinforces an important message. Discipline in balance sheet management may generate short-term impacts, but it also leaves us better prepared to face periods of volatility and to sustain a more solid trajectory of growth and profitability over the medium and long term. We continue advancing in primacy, in portfolio composition, in funding, in efficiency, and in technology. We are building an increasingly balanced, more resilient, and more predictable franchise. Thank you all very much and now let's go to the Q&A with Camila.

Q&A SESSION Camila Stolf: Thank you. We're back. To ask your question, simply click the hand icon that appears at the bottom of the screen. We will answer questions in the language in which they are asked. We ask that each analyst ask only one question so that everyone has the opportunity to participate. The first question here comes from Pedro Leduque, from Itaú BBA. Good morning, Pedro. Pedro Leduque: Good morning, Camila. Good morning, everyone. Thank you for the question. It relates to revenue. I'd like to understand a bit about what we're seeing both in NII and in fees. There must be several headwinds and there must be things going in your favor as well. If you could help us understand how long these headwinds, whether a change in mix or repricing, are likely to continue weighing on performance. And what we have or haven't been able to see so clearly, but that you can help explain, as to what could be a tailwind, and if, in the end, you could help us envision when revenue could return to growing, whether year on year or quarterly, in a more robust way, that would be good. Thank you. Carlos Muñiz: Let's see, Pedro, I would say we have aspects that we control and aspects that we don't control, right? The drop in the CDI rate, or the evolution of the CDI rate, is something we can't control, and we have no idea how it will perform in the future. We have a view, but we don't have certainty about what will happen. The adjustment in banking correspondent is another thing we know will happen. We think it shouldn't worsen much more in the future. We've accumulated a relevant amount. Then there's what we always say: I don't know whether you're following it, whether you believe it or not, quality, quality, quality,

Videoconference Transcript 2Q26 Results Santander July 29, 2026 we're not worried about market share. We are very concerned about the macro environment and about being sure that all the origination we do, is profitable origination that we're comfortable with. We are making tough choices. I would like to have booming revenues, but the reality is that, with the doubts we have about the macro environment, I prefer to play a bit safer, even if that is costing us in the short term. So what happens? We are setting aside the more profitable products, we are reducing in the revolving lines you asked about, we are reducing in all the products that carry very high margins or especially risky audiences, focusing our attention on secured operations, including government guarantees, such as PRONAMPE and others, as well as mortgage collateral or even in consumer finance, right? In your models, I'm not sure whether it was yours or another analyst's, in consumer finance we continue to grow, but we continue to grow in new, electric, and hybrid cars, with strong down payments up front, and a bit less in older cars, which are for an audience with a higher default risk. Fees are linked to many of these credit operations, right? Fortunately or unfortunately, it's those higher-risk clients who have the ability to pay higher fees. We are setting that aside a bit for other players who think they have an opportunity in those segments. We are staying a bit calmer, and this is also causing our fee revenues to pull back a little. We expanded in some lines, as we said, “consórcio”, open insurance, and others, but we have a decline in those that were more credit-linked for those segments of the population. So I'm not optimistic about the evolution of revenues; we're going to have a performance, as we told the market, of low single digit. The objective now is not to grow that line, but to be sure that we don't now make bets or investments that carry a bill to pay in the future. Pedro Leduque: So we are still in this process; maybe low single digits for the year would be something interesting. Thank you. Camila Stolf: Yes, Pedro, I would just add here, regarding client NII. If we look at the spread, Carlos briefly mentioned the impacts we have on the funding margin, right, with the CDI falling here this quarter, and also the impact of the higher banking-correspondent expense. This, quarter on quarter, has an impact of 10 bps. Year on year, it's practically 20 bps. So this part should reduce its impact over time, as Carlos put it. We expect that by the end of the year we'll reach a more normalized run rate for expenses. The mix part, as he put it, is the part that has pressured the most, mainly in credit. And here I would highlight two points. One is that we really have grown more in secured lending, as he mentioned. Here, in SMEs, more than 40% of our portfolio is collateralized. And within the individuals segment, the highlight here

Videoconference Transcript 2Q26 Results Santander July 29, 2026 is Select growth of 8% year-over-year, while the low-income segment declined 8% year-over-year. So this, at first, pressures the result, right? We impact revenue here, but there's still the counterpart, which is the higher loan loss provisions. But over time we expect to reap these benefits.

Camila Stolf: The next question comes from Gustavo Schroden, from Citi. Hi, Gustavo, good morning. Gustavo Schroden: Good morning, Carlos. I'll follow up, not specifically on revenue, which Leduc brought up, but on the combination of revenue with loan loss provisions and asset quality. Because I think it's clear, from the information, that the bank intends to be more conservative in portfolio growth, in the lines, seeking mid- and high-income, but the counterpart of that hasn't come yet, which would be lower loan loss provisions, which would then offset in a risk-adjusted NII. I'd like to understand what we can imagine. We understand there were one-off cases. There was a specific case and also the matter of the write-off change. So, R$ 700 million should be understood as a one-off increase in loan loss provisions, but even so we see an over-90 NPL rising, and across all lines. I'd like to understand what we can imagine here regarding asset quality and loan loss provisions over the year, and if you could tell us, obviously not a specific date, but when we should see this postprovision NIM returning to improvement. Is it more toward 2027, or do you think that maybe by the end of the year we'd already see this risk-adjusted line improving? Thank you. Carlos Muñiz: Thank you for the question, Gustavo. I think I already mentioned that I, personally, am not optimistic, so if I had to put that date, it's probably at the beginning of 2027, rather than at the end of 2026. I don't know whether Camila will agree with me afterward. We are expecting this change, this improvement in loan loss provisions, but we have to remember that we still have the update of the CMN Resolution No. 4,966 models, and I refer to that update that we have to make every year, incorporating the new macro scenario. As for the new macro scenario, I wasn't here when it was done last year, but I believe that what we'll have to incorporate this year will be worse than what we have right now in the models. So I don't expect good news from the CRO in that direction, and we'll probably have this impact that we'll have to book in the fourth quarter, unless I'm mistaken. What's important for me is what we are beginning to observe in actual portfolio writeoff performance, the real performance of the portfolios, which has some more positive signs. I don't know whether it will offset all this impact, and whether you'll be able to start seeing that the evolution of loan loss provisions is better than the evolution of the portfolio. We'll probably still be in line with these two things, but I believe we're making the right choices and that at some point this decision has to pay off.

Videoconference Transcript 2Q26 Results Santander July 29, 2026 Camila Stolf: I think the mix adjustment we've been making still doesn't show up here in the loan loss provisions line. There are the factors that Carlos mentioned, and in recent quarters we've also had more impact from both wholesale and agribusiness. Low income, we've already been talking here about this reduction, but it's still a relevant part of our portfolio, approximately 40% of the individual portfolio. But over time this gets diluted. At this moment we'll be dealing more with the matter of models and also a bit with macro deterioration. The main lines, as Carlos commented earlier, but where we see the most pressure are low income, agribusiness, and smaller SMEs, which are being diluted within the total portfolio. Gustavo Schroden: How much of this higher loan loss provisions is from the CMN Resolution No. 4,966 model revision, and how much is from the deterioration itself, of the portfolios? Carlos Muñiz: In terms of deterioration, we've only observed it, as Camila said, in low income in individuals and in the lower end of the SMEs segment as well, right? The rest of the portfolios are already stable or even improving. I'd talk about the model, but I don't have the numbers yet. I'd like to share them with you, but we haven't completed the calculations yet based on the new macro scenarios that we're still developing. We have to remember that in this country we have elections around the corner, right? In the month of October. I come from a geography where interest rates don't change every week the way they do here. So I honestly don't know what macro scenario we have to put in for 2027, 2028, and 2029 to have that clear impact. I think that for the next disclosure we'll probably already have it much clearer how big that bill can be, but I believe it won't be an improvement, but probably a worsening of the scenario. Camila Stolf: I think, as a reference, Gustavo, Carlos also highlighted this during the presentation, but if we look at the loan loss provisions expense, right, this quarter it was R$ 7.7 billion. And we put here, as more one-off impacts, that we had some reinforcements linked to wholesale and also the implementation of the new write-off policy, mainly for unsecured credit. These two together are R$ 700 million. So that would be a reference here for what we have as recurring. Then, as Carlos put it, when we update the macro parameter, we will eventually have a bit more demand here in some specific lines.

Camila Stolf: The next question comes from Ricardo Bushpigel, from BTG. Hi, Ricardo, good morning.

Videoconference Transcript 2Q26 Results Santander July 29, 2026 Ricardo Bushpigel: Good morning, Camila. Carlos, thank you for the opportunity to ask questions. In the quarter, we saw that the growth of tax credits accelerated, thus pressuring the bank's tangible capital. Given the importance that this part of capital has for improving ROE in a context of high interest rates, do you see room to raise the percentage of tangible capital in equity, and what initiatives could be taken to accelerate this whole process? Thank you. Carlos Muñiz: If you have the answer, please share it with us, but unfortunately it comes down to generating revenues, and generating revenues that don't raise loan loss provisions, and the country's macro moment isn't helping in that direction. So it's a focus on risk-free revenues on one side and on improving this cost of risk we're having. You'll also remember that, in parallel with what should be the solution, which is precisely that, we're making an effort to simplify the corporate structure, which is happening at all the speed it can be done. We continue incorporating companies from outside the bank's perimeter into the bank's perimeter. Esfera was the last one we did in the second quarter, and this should also improve the consumption of these DTAs. But those are the two levers we have in mind right now: the integration of companies to increase the bank's taxable base, and the improvement of results, which unfortunately goes more slowly than we would like. Ricardo Bushpigel: So that's clear. And is there any way to have visibility on the timing for these processes to happen? Carlos Muñiz: We had told you that we thought we'd begin to reverse the accumulation of these tax credits between 2027 and 2028. I don't yet have the plan for the next three years, 2027, 2028, and 2029, but that 2028 date we've been mentioning to you shouldn't change much.

Camila Stolf: Now we have a question here from Daniel Vaz, from Safra. Hi, Daniel, good morning. Daniel Vaz: Hi, Camila. Hi, Carlos, good morning. Thank you for the space for questions. I'd like to go back a bit to the point about revenues, and here about risk-adjusted NII. I think the big miss in the market's forecasts for your results was not in provisions, because there was already some concern about the quarter, but in NII. NII, especially in the spread, seems to carry a heavier drag for you to recover. Precisely as Carlos said, we need revenue. And this miss, which will take a while to recover a bit of the post-provision NII, seems to me to work against your ROE for longer. So I'd like to check with you this scenario of ROE around 12%, 13%, up to this sub-15%, there between 12% and 15%, how long should that last? And whether it should be close to a year. And whether this implies anything for JCP payment, which today you're paying R$ 2 billion per quarter, and whether you're comfortable continuing to distribute this same level given this lower ROE. Well, thank you.

Videoconference Transcript 2Q26 Results Santander July 29, 2026 Carlos Muñiz: A very good question, Daniel. Let's do it in two parts. JCP on one side, and the pressure on revenues, on profitability. I already spoke about the mix and about the certainty we have that we're making the right choices on the mix side. The spreads we capture in the high-income audience, those we capture in secured operations, whether mortgage or Pronampe in SMEs, the growth we have in the real estate sector, don't help produce strong growth on that side. Even with the whole renegotiations policy and doing things properly, playing on the safer side, I'd say there won't be booming growth in the top line, but I believe it will pay off in the medium and long term. Will this impact the payout? No. We maintain a payout policy of 50%. It'll be R$ 2 billion, depending on the budget and on what we think we can achieve in terms of results next year. But as for the change, or the distribution policy, we have no plan to change that 50% that we now have committed to the market. Camila Stolf: This quarter it came in a bit above, right? The R$ 2 billion, with profit, with EBT more pressured, ended up coming in above the 50% Carlos mentioned. We've had periods where, even during the year, this comes in a bit above, a bit below, but I think it's a reference here more of the long term regarding payout. Daniel Vaz: If there's just a comment on ROE, I actually asked whether you have visibility on how long it should stay in this somewhat lower period, at this somewhat lower margin. Any estimate? Carlos Muñiz: I believe this should last over the course of this year. We will probably return to more reasonable levels next year. The Group will push us to get there. And I think that, honestly, what I see, I can't show it, what I see of the latest origination cohorts and so on makes me feel comfortable about reaching those levels. What I don't control is the speed of turnover of the entire past. But if I had the possibility of doing a write-off of the whole legacy bank, that would show you what the last 12, 18 months have been, I'd say you would have a bank you'd like much more.

Camila Stolf: Let's go with Thiago Batista from UBS. Good morning, Thiago. Thiago Batista: Carlos, Camila, I'll do a follow-up on Vaz's question about profitability. You commented, Carlos, that Spain will push you to have better profitability. They've been quite vocal saying that at some point, mainly when interest rates normalize, we should see the return, I know it's not exactly ROE, but tangible equity, reaching 20%. When you look at today's ROE, the 16% ROE, what

Videoconference Transcript 2Q26 Results Santander July 29, 2026 are the main levers for this ROE to move from that level of 16%, now 12% and a bit, to a level close to 20%? Carlos Muñiz: Simple, I'd say, Thiago. The first, on my side, is to keep advancing in generating revenues not linked to credit. The second has to do with costs. We remain very focused on costs, on capturing many of the investments we're making in AI, in global platforms. And the third, a normalization of loan loss provisions that begins to reflect the choices we've been making. The combination of the three, I don't know whether they'll happen at the same time, or whether they'll happen sequentially, is what should help us move from the 12%, 13% of this quarter to levels closer to 20% in the short term. Camila Stolf: I think, just to detail it, Thiago. Revenues not linked to credit — we talked here about fees, some of which obviously carry more weight when you're in a pace of portfolio acceleration, but there are also funding revenues. At this moment we had an impact here from the lower Selic, but we've worked quite a bit on the funding mix to reduce the deposit cost here and also to have additional revenue coming from this line. Carlos Muñiz: I don't know whether we've also mentioned here the topic of market NII. You'll remember that we have a legacy portfolio, right? That comes from the past and, over time, improves. And we believe that next year, as we've already told you, we expect an improvement on that side that should also help profitability. So I'd say that's a positive, probably on the NIM line, along with the same credit-origination strategy.

Camila Stolf: Mario (Bank of America), good morning. Can you hear us? Mario Pierre: I'd like to focus a bit more on what you're talking about regarding the mass-market segment, right, which still represents 40% of your portfolio, and this is a segment that's under quite a bit of pressure, given the macro scenario we have, right, and high interest rates and very high household indebtedness. So I'd like to understand to what level you'd like to reduce this exposure to the segment, and you also mentioned that you felt a bit of pressure in cards in low income. Whether that has a bit to do with a loss of primacy, or whether the problem is just a macro problem itself. Thank you. Carlos Muñiz: You'll have to take the answers of many banks to get the answer to the second question. In our case, we don't perceive it to be a primacy problem, but rather a structural problem of the whole country. High interest rates start to pressure people. I would place, above this doubt about what will happen in the future, what the outcome of the elections might be. I don't know whether the current

Videoconference Transcript 2Q26 Results Santander July 29, 2026 levels of government support for the population will or won't be maintained in the future, and whether the employment levels we now have, at record highs, the best in history, will likewise be maintained. Whether the situation, or the speed of the economy, is a bit lower. All of this is what makes our more cautious stance toward vulnerable customer segments. We don't have much optimism about the evolution this mass may have, right? And within the more mass segments, we have audiences that are not profitable for us. INSS, for example, is an audience we can't make profitable. We have these doubts with incomes below R$ 4,000, which we mentioned in the presentation, where we probably have competitors who do the business much better than we do. So it can't be our objective. The speed of the portfolio reduction will be a mixture of our origination appetite, we continue doing origination in the private payroll-loan segment, we generate R$ 300 million, R$ 400 million, R$ 500 million, and we may end the year a bit above these origination levels, but what's harder for us to control is the decline of the portfolio we have, because there we have a dependency on the payment capacity, on how the renegotiations are happening. I already said during the presentation that we don't want to do smokeand-mirrors renegotiations. We want to do renegotiations that will really come back in recovery and deliver the discounts to those who genuinely intend to repay the debt that remains outstanding after this renegotiation. Camila Stolf: I think just one point I'd add here, Mario: we've been doing quite strong work on adjusting the cost to serve, especially for this segment. So, if we note here over the last two years, Carlos mentioned it, there's a 30% reduction. One part of the equation for making this group profitable is loan loss provisions, it's the main part, it's where we've seen the pressure currently. The other part is the cost to serve, on which we've been working so that we can also be profitable in a borderline audience that at this moment is not profitable, is not attractive, but that we believe will, in the future, return to being interesting for the bank. Mario Pierre: Thank you. If I could do a follow-up on what you mentioned about negotiation. What was the impact of the Desenrola program for you in the quarter? Carlos Muñiz: It was low in general terms, Mario. As I said, we already had a recoveries policy, I'm not sure whether the word is aggressive, right? with strong discounts for those clients we think genuinely intend to make the payment. So Desenrola didn't offer the possibility of doing much more than we were already doing. It's true that the rates after the discounts are better within the program, but it didn't significantly change the amount we were doing. I don't have the figures in my head, Camila will help me now, in SMEs we're talking about a few, not even hundreds of millions. And on the individual side, yes, we did a bit more, but that also didn't change the level of what we had seen in terms of recoveries.

Videoconference Transcript 2Q26 Results Santander July 29, 2026 Camila Stolf: It was a bit higher than the first Desenrola program, but what we really see here is that you have low take-up from the indebted, right? Whoever has to want to join and has to want to make the payment is the indebted person. And that's not very strong. It wasn't even in the original program — as Carlos put it, we already had, before Desenrola, interesting conditions for renegotiation and there wasn't much take-up. And here, with the program, it's not as if there was a very significant increase either.

Camila Stolf: Now let's go with Yuri Fernandes from J.P. Morgan. Good morning, Yuri, welcome. Yuri Fernandes: Good morning, Camila. Good morning, Carlos. I'd like to return to the margin. I know it's already been asked; I'll ask it in a different way here. I think Camila commented that, of the 40 bps, about 10 bps came from funding and from the fee, from the correspondent impact. So that leaves the 30 bps from the mix, which is the de-risking. But it seems like a lot. So my question is: are you going to keep de-risking the portfolio? From what I understood, Carlos, the doubt is, one, whether this spread will keep falling, because the de-risking continues. Or two, no, was there some write-off impact, did we have more write-offs, did that hit the renegotiated portfolio, did that perhaps hit the renegotiated portfolio, and the personal loan, and maybe that may have influenced a larger drop than it should have been, these 30 bps? So I want to understand whether there was some other factor, because the derisking trend is already old within Santander, you've already been reducing the mass market, already having more care. So the doubt I have is why it fell so much now. And if it fell so much and the derisking continues, won't it fall further? And just a provocation, Carlos, I think there's no easy answer to the difficult DTA problem, but one provocation is to recapitalize a dividend. You issue the JCP, get the tax shield and call this capital back, it takes time, it's not easy, the problem still remains there, but it's just a provocation, a way of consuming DTA over time as well. Thank you. Carlos Muñiz: I like the provocation, Yuri. It's a conversation we have here internally. We don't have any decision yet. We have to talk with Gilson and all the others, to see what we ultimately do and communicate in case we make a decision in that direction. Going back to the mix, which is also a nice provocation on your side. We effectively had more impacts, which resulted in the drop in NII, in the evolution, in the loss of those basis points you mentioned, but, while the de-risking trend is older, I'd say it's coming back more aggressively in the last few months. And here, the government programs weren't there the whole time, and the conditions of these programs pressured margins even more. The decisions about renegotiations are newer within the

Videoconference Transcript 2Q26 Results Santander July 29, 2026 bank, and there we'll continue with this discipline, and it's also having a cost on the NII side. And what I said about the riskier products, I'm still surprised when I see the interest levels we have on revolving lines and so on. I think we shouldn't have an account based on charging these interest rates, because we've already seen some indications in the past of the government putting caps on these products, and I wouldn't want to be tripped up by a business model that's very dependent on these audiences and on these interest rates that at some point might not be sustainable for political reasons. Camila Stolf: Perfect. I think there's a bit of the impact you mentioned, too, from the non-performing portfolio that pulls the spread down. There's mark-to-market of some securities that we hold available for the client, but the bulk here is really mix, as Carlos put it. And, as you reduce what is Especial spread versus Select. Also remembering that, within Select, what grows here as a highlight is mortgages, which gains share in the portfolio, being almost 100 basis points this last year. So these are portfolios with less spread, in which we're betting on a medium-term view, where you'd have the NIM adjusted to the cost of risk more favorable. Carlos Muñiz: Even in consumer finance, I don't recall the details, Yuri, but we had an origination of new electric vehicles of around 7%, and now we're at levels of more than 22%. Again, these are choices; yes, we're deepening this strategy, because the macro doesn't help us be more optimistic. So I prefer to play it safe, as I said in the first videoconference with Mario. I want to have a boring, predictable bank, no surprises on the positive side, but also none on the negative side. And then we'll talk about growth, once we have everything well under control.

Camila Stolf: We now have the participation of Marcelo Mizrahi from Banco Bradesco BBI. Good morning, Mizrahi. Marcelo Mizrahi: Hello, everyone. How are you? Thank you for the opportunity. Again on the topic of de-risking, right? Is there any information you could share with us to try to perhaps size the extent of the adjustment still in the portfolio? If we think about it, we have roughly R$ 100 billion here of consumer credit portfolio, a middle-market SME portfolio of around R$ 60-something billion, a creditcard portfolio of around R$ 60 billion. Thinking about the portfolios individually, or perhaps about the portfolio overall, how much are we talking about of a portfolio that is no longer the target portfolio, or that is going through this de-risking, this portfolio that is classified as more of a low-income or retail portfolio, or that doesn't have the desired profitability? Carlos Muñiz: More of the second, right? Camila can complement me here. We don't have any problem. In fact, we have quite a lot of appetite to keep growing in the wholesale world, in the world

Videoconference Transcript 2Q26 Results Santander July 29, 2026 of larger companies or of mid-sized companies. Within SMEs, E1 is the one that worries us the most. E2 and E3 have reasonable behavior, and the government programs offer us the possibility of generating credit that we're comfortable with. Shifting to individuals, Camila was very clear. We're very clear that the Select world, even the mid Select, are audiences we're comfortable with, which pay half the spread of the mass market. So is the mass market untouchable? No, the mass market can be done, but it has to be done very selectively. Below R$ 4,000, we can't compete with other incumbents right now, and we won't. And above that income, we'll always seek operations with some type of collateral, whether in consumer finance with quality and newer cars, not old ones, or in motorcycles, or in payroll loans themselves. But I think the overdraft, unsecured credit, is complicated for us, particularly at low income levels. Marcelo Mizrahi: I think, I'll even go back to the point: Santander, if it isn't the leader, always shares the leadership in the vehicles segment in Brazil. Santander also has an important card portfolio. We're talking about roughly, well, we said here 20%, below 20%, of origination in electric cars. So the impression I have is that the portfolio still classified as mass market is quite large in the total portfolio. So how much are we talking about? On an order-of-magnitude basis, are we talking about half the portfolio, this portfolio that today is the one in which the bank is a bit more cautious? Is it one-third? For an order of magnitude, for us to think about how much portfolio there is that will decrease and that will gradually be swapped for a more defensive portfolio, for us to try to do this simulation of revenue impacts. Camila Stolf: We talk about, in the individual portfolio, around 40% that we classify as low income, that is, what is not Select, below R$ 7,000 of monthly income. In SMEs, 20% of the portfolio are those smaller companies where we've seen more pressure. As Carlos put it, it doesn't mean we're going to remove the 40% or the 20%. There are products within these segments that we still consider attractive. So, within the SME area, we've been seeking to grow quite a bit in Pronampe for this segment, and we've been increasing its share over the last few quarters. And on the individual side, if you look, there's a large share in consumer finance. There's a share in cards, where we've already reduced the mass market, as well as in Personal Loans, which we've been reducing for quite some time. And what we have here to accelerate over time is the private payrollloan area, in which we made an adjustment in the first half with more depressed origination, but this is a product in which we see an opportunity to grow even in low income. And, given that we have a strength regarding payroll, this also allows us to have better visibility of the client.

Videoconference Transcript 2Q26 Results Santander July 29, 2026 Let's now go with Thiago Binsfeld from Goldman Sachs. Good morning, Thiago. You can begin. Thiago Binsfeld: Hi, good morning, Camila, Muñiz. Thank you for taking our question. In expenses, the bank has been going through a fairly relevant process of adjusting branches and personnel. I'd like to understand the maturity of this process. Do you think this ends in 2026, or is there room to go beyond 2026 and continue making other adjustments? And still on this topic of cost to serve, how are you seeing the adoption of artificial intelligence within the bank? Could this eventually accelerate this process of efficiency gains, in your view? Thank you. Carlos Muñiz: Thiago, as Camila mentioned, one of the main concerns we have at the bank is the cost to serve, because the cost to serve is what could make profitable many of the audiences that right now we can't cover the way we'd like to. The discussion about what the correct footprint is won't stop. We continue having conversations, and I'll listen to Gilson's opinions about the number of stores we have and the format of each of them, which is another internal conversation. Not just about how many stores you have, but also the size and the service that each of these branches has to offer to the market. Speaking of artificial intelligence. Everyone at the bank has access to artificial intelligence tools. One of the advantages of belonging to a large group is having quite powerful tools, which we're starting to implement with very good results. This message doesn't square much with the cost side, because everyone sees artificial intelligence as the lever to do the same with less cost, or more with the same cost. But, beyond that, they're allowing me to make offers that impact revenues, with a very customized offer to each person, much more tailored, much more personalized. So, yes, on the cost agenda at Banco Santander, I have been with the bank for 22 years, and there wasn't a single year in which we didn't talk about costs. It's a permanent agenda of the bank, which, with the tools that the market now makes available to us, will become even more competitive. And Brazil is the most competitive market. Here we're very clear that we have opportunities to reduce this cost to serve. So we have total focus on finding these levers and making use of them.

Camila Stolf: We now have a question from Matheus Guimarães from XP. Good morning, Matheus. Welcome. Matheus Guimarães: Good morning, Camila. Good morning, Carlos. Thank you for the opportunity to ask a question, and congratulations on the results. I think we've already talked here quite a bit about revenue and costs, but I'd like to talk a bit about the greater focus on high income. We've seen competition grow in this mid and high-income segment, and you, taking your foot off the mass market

Videoconference Transcript 2Q26 Results Santander July 29, 2026 a bit, are going to precisely intensify this competition in this market even more. What are you imagining, going forward, that should be the differential of your offering to keep gaining traction? Camila, I think, mentioned the growth in Select of 8%. So, what do you see as a differential, and how do we think about this going forward, within the bank's consolidated view? If you could give us a hand on this front, I think it would be quite useful. Thank you. Carlos Muñiz: A super relevant point: how we're going to differentiate ourselves from all the rest of the competitors. We talked in the presentation about Santander Rewards. I had quite a lot of conviction that the program would deliver results, and the truth is that the numbers are beginning to prove that we made the right choice. What I saw in NPS was a very significant improvement. We've compared two groups: the group of people who joined the program and the group of those who haven't joined yet. And there's a significant difference of more than 10 points in the NPS. This will be one of the main levers we have. Other initiatives from the past are also proving their results. Much closer advisory, whether for investments or for the insurance world, are also showing that it works with this audience. So it's a complex, very complicated job, as you said, but the Group is helping us identify how to do this work. I'm not certain that we'll be successful, but the first numbers prove that revenues grow, that client engagement grows, that primacy with these clients is growing. So I'm optimistic about the progress we're observing. Camila Stolf: Here, Matheus, if I may complement. In cards, we've managed to increase the share of wallet of our clients. Spending here has been growing over the last few years. So the point Carlos brings about primacy, we've managed to measure it within this segment. And mortgages too, right? Mortgages is a sector in which we even gained market share in these last few months, and we've managed to have a good offering; it's a segment that is 80% high income. So, within the high-income focuses, I think on the credit side that's it. And then, on the service side, as Carlos put it, there's the AAA offering in investments. So it's an advisory service in which we've managed to have good net inflows within Select. And now, with Rewards, we're able to reward that client whom before we looked at very much from the view of card spending, of the benefit they gained, and of how they used their miles. Now we've been looking at the client in a broader way, and the first results are quite encouraging. It's a short time, but we're quite excited about what we've seen.

Camila Stolf: We have the last question with Carlos Gomes Lopes from HSBC. Hello, Carlos. Good morning.

Videoconference Transcript 2Q26 Results Santander July 29, 2026 Carlos Gomes Lopes: Hello. Good morning. Hello, Carlos. I have two questions. Going back to the beginning. You mentioned how your economic assumptions have to be revised. Could you remind us what your economic assumptions are today? What is your baseline? In what direction do you think they'll go? The second question is about the subject of AI. We talked about the cost of the AI tools and the cost. Have you changed your IT budget? Are you incorporating a higher cost for the tokens? Thank you, Carlos. Carlos Muñiz: Starting with the second question. IT expenses continue increasing, but they're not related to the investments in artificial intelligence, but rather related to the implementation of global tools. In recent presentations we talked about the implementation of Gravity, which is happening at this moment and should finish by the end of this year, perhaps even earlier. In addition, we also have other platforms that will help us with the IT cost over the coming years. As for AI, the cost we're paying is very much in line with our budget. We have AI for everyone, but consumption is divided. Not everyone has access to the best models, which are the ones that make the difference in terms of token cost. So it's an engagement, but with the special tools I referred to earlier, implemented by the Group. And access is limited to those who can extract the most value from AI and the tools. And the first question was about the economic assumptions and the macroeconomic model. I don't remember them in detail. I can do a follow-up with you afterward, but it's something quite broad. They were assumptions developed last year, when everyone was considering a drop in the Selic, reaching levels close to 10%, if not lower in some scenarios. And that fell completely out of scope. The market has the view that the Selic will be around 14% in the medium to long term. That's the only difference that will make a big impact compared with the macroeconomic scenario we had before. Otherwise, I can't comment much on the numbers, as I mentioned. Carlos Gomes Lopes: But the level of rates would be the biggest variable? Carlos Muñiz: Correct. Carlos Muñiz: Yes, inflation, which also has a correlation. Carlos Gomes Lopes: And about the global programs, the cost of the global programs. Is this a cost you have with the Group or with the providers of the tools? Carlos Muñiz: They're global tools implemented by the whole Group. So, the internal technology we have in the Group. We mentioned Gravity, which is probably the best-known tool. It was developed by our Group. It's already been implemented in several geographies. And now we're implementing it here

Videoconference Transcript 2Q26 Results Santander July 29, 2026 in Brazil. The problem is that today we're in the worst of scenarios, because we're still running the mainframe. So we still carry the cost of implementing the new technology. We're starting to bear the cost of having this new technology running in parallel to ensure that the numbers we'll take off the mainframe will be leveraged and with the same results as the new technology. So we're at the moment of reaching that peak. I'm looking forward to the day when we can switch off the mainframe, stop paying for that, and stay only with the new run rate of the new technology, which is much better.

Camila Stolf: And with that we conclude our Q&A session here. I would like to thank everyone for being with us this morning. After this videoconference, I and the entire IR team are available for any questions that may have remained. Thank you all and have a good day. Carlos Muñiz: Thank you.