6-K
Banco Santander (Brasil) S.A. (BSBR)
UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATEISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF1934
For the month of March, 2022
Commission File Number:001-34476
BANCO SANTANDER (BRASIL) S.A.
(Exact name of registrant asspecified in its charter)
Avenida Presidente JuscelinoKubitschek, 2041 and 2235Bloco A – Vila OlimpiaSão Paulo, SP 04543-011Federative Republic of Brazil
(Address of principalexecutive 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
Performance Review.. 3
Condensed Income Statement 14
Condensed Statement of Changes in Shareholders' Equity - Bank. 16
Condensed Statement of Changes in Shareholders' Equity - Consolidated. 16
Condensed Statement of Cash Flows. 19
Condensed Value Added Statement 21
1.General Information. 22
2.Presentation of Financial Statements. 22
3.Significant Accounting Policies. 23
4.Cash and Cash Equivalents. 23
5.Interbank Investments. 23
6.Securities and Derivatives Financial Instruments. 25
7.Interbank Accounts. 42
8.Credit Portfolio and Allowance for Expected Losses Associated with Credit Risk. 42
9.Other Financial Assets. 46
10.Tax Assets and Liabilities. 47
11.Other Assets. 51
12.Information on Dependencies Abroad. 52
13.Investments in Affiliates and Subsidiaries Subsidiary. 53
14.Fixed Assets. 61
15.Intangibles. 61
16.Funding. 62
17.Other Financial Liabilities. 65
18.Other Payables – Other 66
19.Provisions, Contingent Assets and Liabilities and Legal Obligations - Tax and Social Security. 67
20.Stockholders’ Equity. 72
21.Related Parties. 74
22.Income from Services Rendered and Banking Fees. 79
23.Personnel Expenses. 79
24.Other Administrative Expenses. 80
25.Other Operating Income. 80
26.Other Operating Expenses. 80
27.Non-Operating Income. 81
28.Employee Benefit Plans - Post-Employment Benefits. 81
29.Risk Management, Capital and Sensitivity Analysis. 84
30.Other information. 87
31.Subsequent Events. 89
Composition of Management Bodies. 90
Declaration of directors on the financial statements. 92
Directors' Statement on Independent Auditors. 93
Fiscal Council’s Opinion. 94
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 March 31, 2022, 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 InternationalAccounting Standards Board (IASB) for the period ended March 31, 2022 were simultaneously disclosed on the website www.santander.com.br/ri.
1. MacroeconomicEnvironment
At the end of the first quarter of 2022, Banco Santander observed that the median of the projections regarding the performance of the Brazilian economy indicated a growth of 0.5% in the Brazilian GDP in 2022, compared to the expansion of 4.6% in the previous year. The projection for 2022 is higher than that observed at the end of the fourth quarter of 2021 and, in the Bank's assessment, was influenced by the publication that the effective result observed last year was higher than the market consensus - the median of the estimates indicated annual expansion 4.5% for 2021, while the observed figure was up 4.6%. However, the economic activity data released was in line with Santander's estimate for GDP growth in the previous quarter, and reinforced the Bank's expectation that the Brazilian economy will grow by 0.7% in 2022.
In the first quarter, the Bank witnessed the interannual variation of the IPCA reach 10.54%, a level above the target set for 2022 (3.50%) and higher than the interannual value of 7.5% projected by Santander for the year 2022. The Bank understands that this inflationary environment and its balance of risks were the reasons for the Central Bank of Brazil to raise the basic interest rate to 6.25% p.a. to 9.25% p.a. in the fourth quarter of 2021 and extended the upward cycle into the first quarter of 2022, when the Selic rate reached 11.75% p.a. at the March Copom meeting. Santander believes that this approach to the Selic rate increases the chance that inflation will converge to the targets established within the time horizon relevant to monetary policy. In this sense, the Bank projects that the Selic rate will reach 13.25% p.a. at the end of 2022 and may decline to 10.00% p.a. at the end of 2023.
Regarding the behavior of the exchange rate, Banco Santander saw the exchange rate of the Brazilian currency against the US dollar close the fourth quarter of 2021 at R$5.58/US$. That is, above the rate of R$5.44/US$ seen at the end of the previous quarter. This trajectory of devaluation of the real was reversed in the first quarter, with the exchange rate ending March at R$4.77/US$, and is in line with Santander's forecast that it will end 2022 at R$5.40/US$.
The aforementioned performances took place in the midst of an international environment that the Bank considered less favorable than in previous periods, with the following themes as highlights: 1) beginning of the cycle of high interest rates by the US central bank and; 2) conflict between Russia and Ukraine, which had an upward impact on commodity prices and reinforced already existing global inflationary pressures. In the domestic environment, Santander understands that the main themes were the following: 1) continuation of inflationary pressures, conditioning the current economic context and; 2) attempts by the federal government to change fuel taxation and alleviate such pressures.
2. Performance
2.1) Corporate Income
| Consolidated Income Statements (R$ Millions) | 1Q22 | 1Q21 | annual changes% | 4Q21 | quarter changes % |
|---|---|---|---|---|---|
| Financial<br> Income | (5,695.1) | 37,756.9 | (115.1) | 29,303.2 | (119.4) |
| Financial<br> Expenses | 15,319.2 | (29,816.7) | 151.4 | (19,749.6) | (177.6) |
| Gross Profit From Financial Operations (a) | 9,624.1 | 7,940.2 | (21.2) | 9,553.6 | 0.7 |
| Other<br> Operating (Expenses) Income (b) | (3,998.2) | (4,035.6) | (0.9) | (4,111.8) | (2.8) |
| Operating Income | 5,625.9 | 3,904.6 | 44.1 | 5,441.8 | 3.4 |
| Non-Operating<br> Income | 371.5 | 29.2 | 1,172.3 | (42.3) | (978.3) |
| Income Before Taxes on Income and Profit Sharing | 5,997.4 | 3,933.8 | 52.5 | 5,399.5 | 11.1 |
| Income<br> Tax and Social Contribution (a) | (1,539.4) | (620.4) | 148.1 | (951.2) | 61.8 |
| Profit<br> Sharing | (475.6) | (471.9) | 0.8 | (618.0) | (23.0) |
| Non-Controlling<br> Interest | (36.5) | (25.3) | 44.3 | (33.9) | 7.7 |
| Consolidated Net Income | 3,945.9 | 2,816.2 | 40.1 | 3,796.4 | 3.9 |
| OPERATING RESULT BEFORE ADJUSTED TAXATION | 1Q21 | annualvariation% | 4Q21 | quarterlyvariation% |
|---|---|---|---|---|
| (R Million) | ||||
| Result before Taxation on Profit and Participation | 3,933.8 | 52.5 | 5,399.5 | 11.1 |
| Foreign<br> Exchange Hedge | 2,049.5 | (100.0) | 782.2 | (100.0) |
| Operating Income Before Adjusted Taxation | 5,983.3 | 0.2 | 6,181.7 | (3.0) |
| INCOME TAX | 1Q21 | annualvariation% | 2Q21 | quarterlyvariation% |
| (R Million) | ||||
| Income tax and social contribution | (620.4) | 148.1 | (951.2) | 61.8 |
| Foreign<br> Exchange Hedge | (2,049.5) | (100.0) | (782.2) | (100.0) |
| Adjusted Income Tax and Social Contribution | (2,669.9) | (42.3) | (1,733.4) | (11.2) |
All values are in US Dollars.
The return for the year based on the accounting result on average equity reached 19.9%, an increase of 5.0% compared to the same period in 2021.
a) Foreign Exchange Hedge of GrandCayman and Luxembourg Branches
Banco Santander operates branches in the Cayman Islands and Luxembourg, which are mainly used 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 finance. abroad and working capital. To cover the exposure to exchange variations, the Bank uses external funding and derivative instruments. In accordance with Brazilian tax rules, as of January 2021, 50% of 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 the taxable income and in the calculation basis of the Contribution Social Security on Net Income (CSLL) of the investing legal entity domiciled in the country, while gains or losses from obligations and derivative instruments used as hedging 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 (PIS/COFINS) and income taxes (IR/CSLL) accounts, as shown below:
| Foreign Exchange Hedge of the Grand Cayman and Luxembourg Branches(R$ Million) | 1Q22 | 1Q21 | annual changes% | 2T21 | quarterly changes % |
|---|---|---|---|---|---|
| Exchange<br> Variation - Profit From Financial Operations | (6,178.1) | 5,015.1 | (223.2) | 1,426.0 | (533.2) |
| Derivative<br> Financial Instruments - Profit From Financial Operations | 6,480.0 | (7,409.4) | (187.5) | (2,315.8) | (379.8) |
| Income<br> Tax and Social Contribution | - | 2,049.5 | (100.0) | 782.2 | (100.0) |
| PIS/Cofins<br> - Tax Expenses | (301.9) | 344.5 | (187.6) | 107.7 | (380.3) |
2.2) Assets and Liabilities
| Consolidated Balance Sheets (R$ Millions) | Mar/22 | Dec/21 | annual changes % |
|---|---|---|---|
| Current Assets | 539,055.1 | 509,576.8 | 5.8 |
| Long-Term<br> Assets | 420,916.0 | 453,799.1 | (7.2) |
| Total Assets | 959,971.1 | 963,376.0 | (0.4) |
| Current<br> and Long-Term Liabilities | 879,450.4 | 882,996.9 | (0.4) |
| Deferred<br> Income | 0.0 | 382.3 | (100.0) |
| Non-Controlling<br> Interest | 1,334.2 | 1,257.2 | 6.1 |
| Stockholders'<br> Equity | 79,186.5 | 78,739.6 | 0.6 |
| Total Liabilities and Stockholders' Equity | 959,971.1 | 963,376.0 | (0.4) |
2.3) Stockholders’Equity
As of March 31, 2022, Banco Santander's consolidated shareholders' equity increased by 0.7% compared to December 31, 2021.
The variation in Shareholders' Equity between March 31, 2022 and December 31, 2021 was mainly due to the net income for the period in the amount of R$3,946 million, the negative equity valuation adjustment (securities and derivative financial instruments ) in the amount of R$475 million.
For additional information, see note 20.
2.4) Basel Index
Bacen determines that financial institutions maintain a Reference Equity (PR), Tier I Equity and Core Capital compatible with the risks of their activities, higher than the minimum requirement of the Required Reference Equity, represented by the sum of the credit risk, market and operational risk.
As established in CMN Resolution No. 4,958/2021, the PR requirement is 11.00%, including 8.00% of Minimum Reference Equity, plus 2.00% of Additional for Capital Conservation and 1.00% of Additional systemic. Tier I PR is 9.00% and Minimum Principal Capital is 7.50%.
As of April 2022, the PR requirement will reach 11.50%, considering 8.00% of Minimum Reference Equity plus 2.50% of Capital Conservation Additional and 1.00% of Systemic Additional, with requirement Tier I PR and Minimum Principal Capital of 9.50% and 8.00%, respectively.
Continuing with the adoption of the rules established by CMN Resolution No. 4,955/2021, the calculation of capital ratios is calculated on a consolidated basis based on information from the Prudential Conglomerate, whose definition is established by CMN Resolution No. 4,950/2021, as shown in follow:
| Basel Index% | Mar/22 | Dec/21 |
|---|---|---|
| Basel I<br> Ratio | 12.75 | 12.81 |
| Basel<br> Principal Capital | 11.74 | 11.64 |
| Basel<br> Regulatory Capital | 14.71 | 14.91 |
2.5) Main Subsidiaries
The table below shows the balances of total assets, shareholders' equity, net income and loan operations portfolio for the period ended March 31, 2022, of Banco Santander's main subsidiaries:
| Subsidiaries (R$ Millions) | Total Assets | Stockholders' Equity | Net Income | Loan Portfolio | Ownership/Interest (%) |
|---|---|---|---|---|---|
| Aymoré<br> Crédito, Financiamento e Investimento S.A. | 58,381.2 | 2,305.2 | 81.3 | 53,756.5 | 100% |
| Santander<br> Leasing S.A. Arrendamento Mercantil | 14,653.4 | 11,045.9 | 118.9 | 2,481.3 | 100% |
| Santander<br> Corretora de Seguros, Investimento e Serviços S.A. | 11,421.6 | 4,623.9 | 265.8 | - | 100% |
| Atual<br> Serviços de Recuperação de Créditos e Meios Digitais S.A. | 3,068.3 | 2,690.4 | 66.2 | - | 100% |
| Santander<br> Corretora de Câmbio e Valores Mobiliários S.A. | 1,520.7 | 807.0 | 37.6 | - | 100% |
The balances presented above are in accordance with the accounting practices adopted in Brazil, established by the Brazilian Corporation Law, together with the rules of the CMN, the Bacen and the document model provided for in the Accounting Plan of the Institutions of Cosif, of the CVM, in what do not conflict with the rules issued by Bacen, without eliminating operations with affiliates.
3. CorporateRestructuring
During the period ended March 31, 2022 and the year ended December 31, 2021, 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 RatingAgencies
For information regarding the Bank's strategy and rating at rating agencies, see the Results Report available at www.santander.com.br/ri.
5. CorporateGovernance
The Board of Directors of Banco Santander met and resolved:
On March 31, 2022, he met the resignation presented by Mr. Cassio Schimtt to the position of Officer without specific designation by the Company.
On March 24, 2022, it approved the appointment of Mr. Pedro Augusto de Melo, to the positions of Member of the Nomination and Governance Committee and member of the Company's Compensation Committee;
On March 21, 2022, it became aware of the resignation request submitted by Mr Leandro Alves to the position of Officer without specific designation of the Company, with effect from March 17, 2022.
On March 2, 2022, it became aware of the resignation request submitted by Mr Marino Alexandre Calheiros Aguiar to the position of Officer without specific designation of the Company, with effect from February 25, 2022.
On February 25, 2022, it approved the Individual and Consolidated Financial Statements of Banco Santander, prepared in accordance with International Financial Reporting Standards (IFRS) for the year ended December 31, 2021.
On February 8, 2022, it approved the dismissal of Mr. Carlos Rey de Vicente from the position of Executive Vice-President of the Company.
On February 1, 2022, it approved the proposal for the declaration and payment of dividends, in the amount of R$1,300 million, paid on March 4, 2022, and the declaration and payment of interest on equity, in the amount of R$ 1,700 million, paid on March 4, 2022, both without any monetary restatement.
On December 28, 2021, it approved the proposal for the declaration and payment of interest on equity, in the amount of R$249 million, which will be paid as of February 3, 2022, without any monetary restatement.
On December 17, 2021, it approved the dismissal of Mr. Sérgio Agapito Lires Rial from the position of Chief Executive Officer of the Company; driving Mr. Mario Roberto Opice Leão, current Executive Vice-President, to the position of Chief Executive Officer of the Company; the dismissal of Mr. Juan Sebastián Moreno Blanco from the position of Executive Vice-President of the Company and the management of the current Directors without Specific Designation, Ms. Andrea Marques de Almeida, Mrs. Elita Vechin Pastorelo Ariaz, and Mr. João Marcos Pequeno De Biase, to the position of Executive Vice Presidents of the Company.
On December 17, 2021, it approved the appointment of Mr. Sérgio Agapito Lires Rial, to the positions of Coordinator of the Nomination and Governance Committee and member of the Compensation and Risk and Compliance Committees of the Company; the dismissal of Messrs. Mario Roberto Opice Leão and Carlos Rey de Vicente from the positions of members of the Company's Sustainability Committee and the appointment of Ms. Andrea Marques de Almeida and Messrs. Álvaro Antônio Cardoso de Souza and Luiz Masagão Ribeiro Filho as members of the Company's Sustainability Committee.
On December 1, 2021, it approved the election of Mr. Gustavo de Souza Fosse as Officer without specific designation by the Company.
On November 16, 2021, it became aware of the resignation request submitted by Mr. Álvaro Antônio Cardoso de Souza to the position of Chairman of the Board of Directors, Coordinator of the Appointment and Governance Committee and member of the Compensation and Risk and Compliance Committees of the Company, all with effect from January 1, 2022 and approved the Proposal of Management to call an Extraordinary General Meeting of the Company to be held on December 17, 2021.
On November 1, 2021, it approved the election of Messrs. Maria Teresa Mauricio da Rocha Pereira Leite, Andrea Marques de Almeida and Gilberto Duarte de Abreu as Officers without specific designation by the Company.
On October 26, 2021, it approved the proposal for the declaration and payment of Dividends on equity, in the amount of R$ 3.0 billion, paid on December 3, 2021, without any monetary restatement.
On October 26, 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 International Financial Reporting Companies (IFRS), both for the period ended September 30, 2021.
On September 16, 2021, he approved the re-election of Ms. Monique Silvano Arantes Bernardes as the Company's Ombudsman 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 International Financial Reporting Companies (IFRS), both referring to the semester ended June 30, 2021.
On July 27, 2021, it approved the proposal for the declaration and payment of interest on equity, in the amount of BRL 3.4 billion, paid on September 3, 2021, without any monetary restatement.
On July 1, 2021, it approved the election of Messrs. Rogério Magno Panca and Sandro Mazerino Sobral as Officers without specific designation by 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 Board of Executive Officers 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 to declare and pay interim and interim dividends totaling R$ 3 billion, paid on June 2, 2021 without any 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 the shares owned by Getnet, with version 2 of the spun-off 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 submitted by Tarcila Reis Corrêa Ursini to the position of member of the Company's Sustainability Committee.
On February 25, 2021, it approved the proposed spin-off of the means of payment operation, carried out by the subsidiary, Getnet Adquirência e Serviços para Meios de Pagamento S.A. (“Getnet”), in order to concentrate Grupo Santander’s technology and payments business within PagoNxt, a new technology-focused global payments platform.
On February 2, 2021, it approved the Individual and Consolidated 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, in continuation of the buyback program that expired on November 4, 2020, it approved 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 disposal.
On February 2, 2021, it approved the proposal for the declaration and payment of dividends, in the amount of R$512 million, paid on March 3, 2021, without any monetary restatement.
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.
CapitalManagement 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.
InternalAudit
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 2022.
7. People
At Santander, we continue to take care of our people. After all, they are the ones who think, design, develop, interact and build what Santander wants to be. This is why the Bank invests in each of its 50,348 employees here in Brazil.
On the subject of Health, we have implemented a series of actions to promote the well-being and physical and emotional health of our employees, especially at this time of resumption after COVID-19, always following the guidelines of Organs health and health bodies.
For the development of our people, the Corporate University – the Santander Academy, works for 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 y Santander supports leaders and managers so that they are close and available. This action is based on three pillars: Feedback, Open Chat and Personalized Recognition, ensuring alignment between everyone through recurring and frank conversations, career guidance and special moments to reward the growth of teams.
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 Education, Experiences and Generations and the LGBT+ pillar. Another good example is the Talent Show. In it, 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.
8. SustainableDevelopment
Banco Santander Brasil's Sustainability strategy is based on three pillars: (i) Strategic and efficient use of Environmental Resources, (ii) Development of Potential 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, having ethical values as a basis and technology at the service of people and businesses.
We recognize our role as a financial institution in promoting sustainable businesses, helping society to prosper. We highlight some initiatives in 1T22:
Environmental
In this first quarter, we enabled R$5.2 billion in sustainable businesses. In addition, we maintained the leadership in the bookkeeping of CBIOs, a market that we helped create in 2020, and currently we account for 56% of the market share in this market, operating in both the primary and secondary markets. In line with our NET ZERO commitment, we advanced in the use of renewable energy and reached 78% of this source in our administrative buildings and stores throughout Brazil.
In addition, in February we opened a solar power plant on the roof of the Geração Digital and Radar buildings. It is the largest installed plant of its kind in an urban area in the state of São Paulo
- and one of the largest in Latin America. There are more than 3 thousand solar panels that will produce enough to supply almost 800 homes or 100 small stores. In technical terms, there will be 1,5 thousand MWh of generation per year.
Social
We provide more than 30 thousand receipts for all participants of the 2021 edition of Amigo de Valor to use in this year's income tax return.
We also held the first training webinar for the 159 projects benefited by Amigo de Valor and Parceiro do Idoso. The objective is to further strengthen initiatives and public policy for childhood, adolescence and the elderly.
We are also increasingly investing in the structuring of endowments – endowments or philanthropic funds – in which it is possible to guarantee a structure of long-term financial sustainability for institutions and non-profit organizations, such as universities and hospitals. In this first quarter, we doubled our AUM in this line.
Governance
In the pursuit of gender equality, we reached 30.1% of women in leadership positions and 27.6% of blacks in the organization. Our ambition is to reach 40% representation of these two groups by 2025. The participation of women and independent members on the Board of Directors was 27% in the first quarter of 2022.
9. Effects of thePandemic - 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. Independent Audit
Banco Santander's policy, including its subsidiaries, in contracting services not related to the audit of the 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 perform 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.
In compliance with CVM Instruction 381/2003, Banco Santander informs that in the period ended March 31, 2022, PricewaterhouseCoopers did not provide services unrelated to the independent audit of the Financial Statements of Banco Santander and subsidiaries greater than 5% of the 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 the evaluation of the work performed, covering any service other than an independent audit of the Financial Statements of Banco Santander and its subsidiaries. This assessment is based on the applicable regulations and accepted principles that preserve the auditor's independence. The acceptance and provision of professional services not related to the audit of the Financial Statements by its independent auditors during the period ended March 31, 2022, did not affect the independence and objectivity in the conduct of the external audit examinations carried out at Banco Santander and other entities of the Group, once the above principles have been observed.
The Board of Directors
The Executive Board
(Authorized at the Board of Directors' Meeting of 04/25/2022)
CondensedBalance Sheet
| Bank | Consolidated | ||||
|---|---|---|---|---|---|
| Notes | 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | |
| Current Assets | 543,884,659 | 522,451,023 | 540,569,791 | 509,576,839 | |
| Cash | 4 | 7,630,025 | 16,361,758 | 7,669,409 | 16,386,974 |
| Financial Instruments | 469,772,996 | 443,560,677 | 458,616,941 | 425,610,218 | |
| Interbank Investments | 5 | 101,090,386 | 85,800,514 | 51,660,545 | 31,388,970 |
| Securities and Derivative<br> Financial Instruments | 6 | 105,520,741 | 78,980,822 | 120,653,940 | 93,620,934 |
| Derivative Financial Instruments | 6 | 21,407,684 | 15,273,412 | 12,990,662 | 7,279,673 |
| Lending Operations | 8 | 110,533,198 | 113,914,019 | 141,043,918 | 144,239,508 |
| Others Assets Instruments | 9 | 131,220,987 | 149,591,910 | 132,267,876 | 149,081,133 |
| Leasing Operations | - **** | - **** | 2,608,846 | 1,117,370 | |
| Provisions for Expected Losses Associated with Credit Risk | 8.d | (6,401,839) | (6,208,228) | (8,258,662) | (7,706,994) |
| Other Assets | 11 | 72,319,122 | 67,383,339 | 79,008,108 | 73,005,988 |
| Current Tax Assets | 564,355 | 1,353,477 | 925,149 | 1,163,283 | |
| Long-Term Assets | 428,751,396 | 458,365,721 | 419,401,327 | 453,799,131 | |
| Financial Instruments | 360,989,210 | 387,956,693 | 371,408,613 | 400,059,113 | |
| Interbank<br> Investments | 5 | 32,569,389 | 33,260,243 | 2,260,292 | 2,240,348 |
| Securities<br> and Derivative Financial Instruments | 6 | 102,836,395 | 129,206,353 | 108,512,780 | 134,085,048 |
| Derivative<br> Financial Instruments | 6 | 16,758,978 | 13,667,486 | 16,930,604 | 13,810,051 |
| Lending<br> Operations | 8 | 202,301,476 | 203,445,400 | 237,181,965 | 239,240,166 |
| Others<br> Assets Instruments | 9 | 6,522,972 | 8,377,211 | 6,522,972 | 10,683,500 |
| Leasing Operations | - **** | - **** | 1,516 | 1,578,582 | |
| Provisions for Expected Losses Associated with Credit Risk | 8.d | (17,918,165) | (17,165,339) | (20,145,850) | (19,424,300) |
| Other Assets | 11 | 10,537,919 | 14,489,073 | 12,844,715 | 17,360,213 |
| Tax Assets | 36,965,002 | 35,767,085 | 42,320,298 | 41,289,987 | |
| Current | 3,972,161 | 2,593,535 | 4,378,165 | 3,331,917 | |
| Deferred | 10 | 32,992,841 | 33,173,550 | 37,942,133 | 37,958,070 |
| Investments | 27,185,740 | 25,980,085 | 768,058 | 428,488 | |
| Investments in Associates<br> and Subsidiaries | 13 | 27,181,847 | 25,958,916 | 764,047 | 408,693 |
| Other Investments | 3,893 | 21,169 | 4,011 | 19,795 | |
| Fixed Assets | 14 | 5,882,329 | 6,066,686 | 6,198,286 | 6,384,348 |
| Real<br> Estate for Use | 2,461,666 | 2,463,155 | 2,742,485 | 2,752,082 | |
| Other<br> Fixed Assets in Use | 13,316,135 | 13,292,159 | 13,559,350 | 13,528,400 | |
| (Accumulated<br> Depreciation) | (9,895,472) | (9,688,628) | (10,103,549) | (9,896,134) | |
| Intangible | 15 | 5,109,361 | 5,271,438 | 6,005,691 | 6,122,700 |
| Goodwill<br> on Acquisition of Subsidiaries | 27,220,515 | 27,220,515 | 28,211,364 | 28,155,084 | |
| Other<br> Intangible Assets | 10,823,523 | 10,793,517 | 11,172,701 | 11,145,052 | |
| (Accumulated<br> Amortizations) | (32,934,677) | (32,742,594) | (33,378,374) | (33,177,436) | |
| Total Assets | 972,636,055 | 980,816,744 | 959,971,118 | 963,375,970 |
The accompanying notes from Management are an integral part of these financial statements.
| Bank | Consolidated | ||||
|---|---|---|---|---|---|
| Notes | 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | |
| Current Liabilities | 576,601,176 | 581,835,528 | 571,953,891 | 571,159,070 | |
| Deposits and Other Financial Instruments | 562,845,841 | 570,676,801 | 548,444,295 | 552,620,227 | |
| Deposits | 16 | 289,588,102 | 302,306,231 | 286,108,704 | 298,306,809 |
| Money<br> Market Funding | 16 | 94,882,132 | 85,154,534 | 90,060,010 | 79,933,047 |
| Local<br> Borrowings | 16 | 66,164,624 | 76,021,633 | 66,188,948 | 76,026,549 |
| Domestic<br> Onlendings - Official Institutions | 16 | 4,146,297 | 4,387,014 | 4,146,297 | 4,387,014 |
| Funds<br> from Acceptance and Issuance of Securities | 16 | 32,144,509 | 28,875,943 | 33,047,865 | 27,581,480 |
| Derivative<br> Financial Instruments | 6 | 20,383,449 | 14,479,201 | 13,272,677 | 6,956,577 |
| Other<br> Financial Liabilities | 17.a | 55,536,728 | 59,452,245 | 55,619,794 | 59,428,751 |
| Other Liabilities | 12,719,125 | 10,218,257 | 21,615,143 | 16,164,475 | |
| Provision<br> for Tax Risks and Legal Obligations | 19.b | - **** | 87,702 | 110,446 | 171,130 |
| Provision<br> for Judicial and Administrative Proceedings - Labor and Civil Lawsuits | 19.b | 1,602,830 | 1,565,666 | 1,796,647 | 1,665,134 |
| Other<br> Provisions | 18 | 1,056,207 | 1,527,594 | 2,070,516 | 5,730,626 |
| Others | 18 | 10,060,088 | 7,037,296 | 17,637,534 | 8,597,586 |
| Current Tax Liabilities | 10 | 1,036,210 | 940,470 | 1,894,453 | 2,374,368 |
| Long-Term Liabilities | 316,784,993 | 319,776,644 | 307,496,492 | 311,837,837 | |
| Deposits and Other Financial Instruments | 264,801,004 | 262,445,497 | 249,012,185 | 245,356,883 | |
| Deposits | 16 | 107,785,310 | 104,576,178 | 107,506,006 | 105,332,878 |
| Money<br> Market Funding | 16 | 19,184,114 | 15,715,553 | 19,184,114 | 15,715,553 |
| Local<br> Borrowings | 16 | 4,724,481 | 3,707,117 | 4,724,481 | 3,707,117 |
| Domestic<br> Onlendings - Official Institutions | 16 | 7,333,528 | 7,466,070 | 7,333,528 | 7,466,070 |
| Funds<br> from Acceptance and Issuance of Securities | 16 | 91,888,884 | 86,967,036 | 75,670,801 | 67,799,380 |
| Derivative<br> Financial Instruments | 6 | 16,491,352 | 17,676,138 | 16,496,684 | 17,690,654 |
| Other<br> Financial Liabilities | 17.a | 17,393,335 | 26,337,405 | 18,096,571 | 27,645,231 |
| Other Liabilities | 19 | 49,506,383 | 55,300,978 | 55,314,426 | 63,772,477 |
| Provision<br> for Tax Risks and Legal Obligations | 4,492,502 | 4,224,532 | 6,849,850 | 6,577,554 | |
| Provision<br> for Judicial and Administrative Proceedings - Labor and Civil Lawsuits | 3,491,018 | 3,468,009 | 3,599,677 | 3,660,582 | |
| Other<br> Provisions | 789,283 | 931,767 | 789,283 | 1,036,486 | |
| Others | 40,733,580 | 46,676,670 | 44,075,616 | 52,497,855 | |
| Deferred Tax Liabilities | 2,477,606 | 2,030,169 | 3,169,881 | 2,708,477 | |
| Current | - | - | - | - | |
| Deferred | 10.b | 2,477,606 | 2,030,169 | 3,169,881 | 2,708,477 |
| Deferred Income | 10.b | - **** | 360,501 | - **** | 382,255 |
| Stockholders' Equity | 20 | 79,249,886 | 78,844,071 | 79,186,532 | 78,739,563 |
| Capital | 20.a | 55,000,000 | 55,000,000 | 55,000,000 | 55,000,000 |
| Capital<br> Reserves | 20.c | 371,497 | 387,537 | 378,822 | 400,701 |
| Profit<br> Reserves | 20.c | 26,679,947 | 27,954,392 | 26,623,263 | 27,445,196 |
| Adjustment<br> to Fair Value | (4,157,158) | (3,784,819) | (3,766,318) | (3,393,295) | |
| Acumulated<br> Profits | 2,217,375 | - | 1,812,540 | - | |
| (-)<br> Treasury Shares | 20.d | (861,775) | (713,039) | (861,775) | (713,039) |
| Non Controlling Interest | 20.e | - **** | - **** | 1,334,203 | 1,257,244 |
| Total Stockholders' Equity | 79,249,886 | 78,844,071 | 80,520,735 | 79,996,808 | |
| Total Liabilities | 972,636,055 | 980,816,744 | 959,971,118 | 963,375,970 |
The accompanying notes from Management are an integral part of these financial statements.
Condensed
Income Statement
| Bank | Consolidated | |||
|---|---|---|---|---|
| 01/01 to 03/31/2022 | 01/01 to 03/31/2021 | 01/01 to 03/31/2022 | 01/01 to 03/31/2021 | |
| Income Related to Financial Operations | (9,070,965) | 35,554,559 | (5,695,103) | 37,756,910 |
| Loan<br> Operations | 10,606,176 | 12,569,873 | 13,877,342 | 15,180,550 |
| Leasing<br> Operations | - | - | 79,019 | 53,523 |
| Securities<br> Transactions | (7,519,005) | 16,047,237 | (8,778,666) | 15,625,403 |
| Derivatives<br> Transactions | (11,710,629) | 6,078,714 | (10,433,260) | 6,037,724 |
| Foreign<br> Exchange Operations | (1,858,940) | 594,617 | (1,858,940) | 594,617 |
| Compulsory<br> Deposits | 1,411,433 | 264,118 | 1,419,402 | 265,093 |
| Expenses<br> on Financial Operations | 16,663,554 | (29,174,884) | 15,319,229 | (29,816,689) |
| Funding<br> Operations Market | 2,752,058 | (15,992,807) | 2,408,904 | (16,095,396) |
| Borrowings<br> and Onlendings Operations | 17,116,475 | (9,948,543) | 17,103,630 | (9,946,402) |
| Operations<br> of Sale or Transfer of Financial Assets | 703,153 | (398,057) | 736,656 | (398,049) |
| Allowance<br> for Loan Losses | (3,908,132) | (2,835,477) | (4,929,961) | (3,376,842) |
| Gross Income Related to Financial Operations | 7,592,589 | 6,379,675 | 9,624,126 | 7,940,221 |
| Other<br> Operating Revenues (Expenses) | (2,640,821) | (2,986,981) | (3,998,177) | (4,035,615) |
| Banking<br> Service Fees | 2,643,344 | 2,539,278 | 3,310,191 | 3,510,034 |
| Income<br> Related to Bank Charges | 1,158,427 | 1,169,282 | 1,307,031 | 1,341,942 |
| Personnel<br> Expenses | (1,500,240) | (1,498,376) | (2,017,351) | (1,777,528) |
| Other<br> Administrative Expenses | (3,072,808) | (3,817,562) | (3,100,416) | (4,048,120) |
| Tax<br> Expenses | (1,182,981) | (467,477) | (1,508,220) | (749,627) |
| Investments<br> in Affiliates and Subsidiaries | 1,062,323 | 929,222 | 10,271 | 7,651 |
| Other<br> Operating Revenues | 1,292,269 | 760,766 | 2,181,131 | 1,254,452 |
| Other<br> Operating Expenses | (3,041,155) | (2,602,114) | (4,180,814) | (3,574,419) |
| Operating<br> Income | 4,951,768 | 3,392,694 | 5,625,949 | 3,904,606 |
| Non-Operating<br> Income | 376,784 | 25,031 | 371,503 | 29,185 |
| Income Before Taxes on Income and Profit Sharing | 5,328,552 | 3,417,725 | 5,997,452 | 3,933,791 |
| Income Tax and Social Contribution | (879,558) | (12,054) | (1,539,411) | (620,383) |
| Provision<br> for Income Tax | (61,957) | (130,227) | (587,476) | (576,630) |
| Provision<br> for Social Contribution Tax | (13,974) | (50,678) | (289,799) | (282,010) |
| Deferred<br> Tax Credits | (803,627) | 168,851 | (662,136) | 238,257 |
| Profit<br> Sharing | (531,619) | (429,095) | (475,629) | (471,886) |
| Non<br> Controlling Interest | - | - | (36,527) | (25,258) |
| Net<br> Income | 3,917,375 | 2,976,576 | 3,945,885 | 2,816,264 |
| Number of<br> Shares (Thousands) | 7,498,531 | 7,498,531 | - | |
| ) | 522.42 | 396.95 | - |
All values are in US Dollars.
The accompanying notes from Management are an integral part of these financial statements.
As a result of the Exchange Variation from 01/01/2022 to 03/31/2022, the Income and Expenses from Financial Intermediation have a debtor and creditor nature, respectively.
CondensedStatement of Comprehensive Income
| Bank | Consolidated | |||
|---|---|---|---|---|
| 01/01 to 03/31/2022 | 01/01 to 03/31/2021 | 01/01 to 03/31/2022 | 01/01 to 03/31/2021 | |
| Profit for the Period | 3,917,375 | 2,976,576 | 3,945,885 | 2,816,264 |
| Other Comprehensive Income that will be subsequently reclassified for profit or loss when specific conditions are met: | (473,928) | (1,593,953) | (474,611) | (1,627,362) |
| Available-for-sale<br> financial assets | (361,671) | (1,351,867) | (362,354) | (1,385,276) |
| Available-for-sale<br> financial assets | (431,408) | (2,075,012) | (534,548) | (2,336,719) |
| Related<br> Companies | (99,890) | (225,668) | - | - |
| Income<br> taxes | 169,627 | 948,813 | 172,194 | 951,443 |
| Cash flow<br> hedges | (112,257) | (242,086) | (112,257) | (242,086) |
| Cash flow<br> hedges | (209,470) | (427,062) | (211,876) | (449,905) |
| Related<br> Companies | (2,406) | (22,843) | - | - |
| Income<br> taxes | 99,619 | 207,819 | 99,619 | 207,819 |
| Other Comprehensive Income that won't be reclassified for Net income: | 101,589 | (19,187) | 101,588 | (19,187) |
| Defined<br> Benefits plan | 101,589 | (19,187) | 101,588 | (19,187) |
| Defined<br> Benefits plan | 223,626 | 13 | 223,625 | 13 |
| Income<br> taxes | (122,037) | (19,200) | (122,037) | (19,200) |
| Comprehensive Income for the Period | 3,545,036 | 1,363,436 | 3,572,862 | 1,169,715 |
| Attributable<br> to parent company | 3,536,335 | 1,144,457 | ||
| Attributable<br> to non-controlling interests | 36,527 | 25,258 | ||
| Total | **** | **** | 3,572,862 | 1,169,715 |
The accompanying notes from Management are an integral part of these financial statements.
Condensed Statement of Changes in
Shareholders' 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 **** Earnings Retained | (-)Treasury Shares | Total | |
| Balances as of december 31, 2020 | 57,000,000 | 302,665 | 4,520,872 | 18,607,926 | 2,596,867 | 124,185 | (3,178,279) | - | (791,358) | 79,182,878 | |
| Employee<br> Benefit Plans | - | - | - | - | - | - | 254,056 | - | - | 254,056 | |
| Treasury<br> Shares | 20.d | - | - | - | - | - | - | - | - | 78,319 | 78,319 |
| Result of<br> Treasury Shares | - | 40,821 | - | - | - | - | - | - | - | 40,821 | |
| Reservations<br> for Share - Based Payment | - | 44,051 | - | - | - | - | - | - | - | 44,051 | |
| Adjustment<br> to Fair Value - Securities and Derivative Financial Instruments | - | - | - | - | (2,985,148) | (596,500) | - | - | - | (3,581,648) | |
| Spin-off | 20.a | (2,000,000) | - | - | (527,444) | - | - | - | - | - | (2,527,444) |
| Prescribed<br> Dividends | - | - | - | 6,530 | - | - | - | - | - | 6,530 | |
| Net<br> Income | - | - | - | - | - | - | - | 14,995,508 | - | 14,995,508 | |
| Allocations: | |||||||||||
| Legal Reserve | 20.c | - | - | 749,775 | - | - | - | - | (749,775) | - | - |
| Dividends | 20.b | - | - | - | (200,000) | - | - | - | (5,800,000) | - | (6,000,000) |
| Interest<br> on Capital | 20.b | - | - | - | - | - | - | - | (3,649,000) | - | (3,649,000) |
| Reserve<br> for Dividend Equalization | 20.c | - | - | - | 4,796,733 | - | - | - | (4,796,733) | - | - |
| Balances as of december 31, 2021 | 55,000,000 | 387,537 | 5,270,647 | 22,683,745 | (388,281) | (472,315) | (2,924,223) | - | (713,039) | 78,844,071 | |
| Changes in the Period | (2,000,000) | 84,872 | 749,775 | 4,075,819 | (2,985,148) | (596,500) | 254,056 | - | 78,319 | (338,807) | |
| ****<br><br>Balances as of december 31, 2021 | **** | 55,000,000 | 387,537 | 5,270,647 | 22,683,745 | (388,281) | (472,315) | (2,924,223) | - | (713,039) | 78,844,071 |
| Employee<br> Benefit Plans | - | - | - | - | - | - | 101,589 | - | - | 101,589 | |
| Treasury<br> Shares | 20.d | - | - | - | - | - | - | - | - | (148,736) | (148,736) |
| Result of<br> Treasury Shares | - | 19,800 | - | - | - | - | - | - | - | 19,800 | |
| Reservations<br> for Share - Based Payment | - | (35,840) | - | - | - | - | - | - | - | (35,840) | |
| Adjustment<br> to Fair Value - Securities and Derivative Financial Instruments | - | - | - | - | (371,632) | (102,296) | - | - | - | (473,928) | |
| Prescribed<br> Dividends | - | - | - | 25,555 | - | - | - | - | - | 25,555 | |
| Net<br> Income | - | - | - | - | - | - | - | 3,917,375 | - | 3,917,375 | |
| Allocations: | |||||||||||
| Dividends | 20.b | - | - | - | (1,300,000) | - | - | - | - | - | (1,300,000) |
| Interest<br> on Capital | 20.b | - | - | - | - | - | - | - | (1,700,000) | - | (1,700,000) |
| Balances as of march 31, 2022 | 55,000,000 | 371,497 | 5,270,647 | 21,409,300 | (759,913) | (574,611) | (2,822,634) | 2,217,375 | (861,775) | 79,249,886 | |
| Changes in the Period | - | (16,040) | - | (1,274,445) | (371,632) | (102,296) | 101,589 | 2,217,375 | (148,736) | 405,815 |
The accompanying notes from Management are an integral part of these financial statements.
Condensed Statement of Changes in Shareholders' Equity -
Consolidated
| 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 Retained | (-)Treasury Shares | Stockholders' Equity | Minority **** Interest | 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<br> Benefit Plans | - | - | - | - | - | - | 254,057 | - | - | 254,057 | - | 254,057 | |
| Treasury<br> Shares | 20.d | - | 40,821 | - | - | - | - | - | - | 78,319 | 119,140 | - | 119,140 |
| Reservations<br> for Share - Based Payment | - | 61,567 | - | - | - | - | - | - | - | 61,567 | - | 61,567 | |
| Adjustment<br> to Fair Value - Securities and Derivative Financial Instruments | - | - | - | - | (3,000,945) | (596,500) | - | - | - | (3,597,445) | - | (3,597,445) | |
| Spin-off | 20.a | (2,000,000) | - | - | (527,444) | - | - | - | - | - | (2,527,444) | - | (2,527,444) |
| Prescribed<br> Dividends | - | - | - | 6,530 | - | - | - | - | - | 6,530 | - | 6,530 | |
| Net<br> Income | - | - | - | - | - | - | - | 14,987,716 | - | 14,987,716 | - | 14,987,716 | |
| Allocations: | |||||||||||||
| Legal<br> Reserve | 20.c | - | - | 749,386 | - | - | - | - | (749,386) | - | - | - | - |
| Dividends | 20.b | - | - | - | (200,000) | - | - | - | (5,800,000) | - | (6,000,000) | - | (6,000,000) |
| Provision<br> of Interest on Capital | 20.b | - | - | - | - | - | - | - | (3,649,000) | - | (3,649,000) | - | (3,649,000) |
| Reserve for Dividend<br> Equalization | 20.c | - | - | - | 5,298,525 | - | - | - | (5,298,525) | - | - | - | - |
| Unrealized<br> Profit | - | - | - | (509,195) | - | - | - | 509,195 | - | - | - | - | |
| Non<br> Controlling Interest Results | 20.e | - | - | - | - | - | - | - | - | - | - | 120,949 | 120,949 |
| Others | - | - | - | 116,260 | - | - | - | - | - | 116,260 | (14,412) | 101,848 | |
| Balances as of december 31, 2021 | 55,000,000 | 400,701 | 5,270,258 | 22,174,939 | 3,242 | (472,314) | (2,924,223) | - | (713,039) | 78,739,564 | 1,257,245 | 79,996,808 | |
| Changes in the Period | (2,000,000) | 102,388 | 749,386 | 4,184,676 | (3,000,945) | (596,500) | 254,057 | - | 78,319 | (228,619) | 106,537 | (122,083) | |
| Reservas de Lucros | Ajustes de Avaliação Patrimonial | **** | **** | **** | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 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 **** Interest | Total Stockholders' Equity | |
| Balances as of december 31, 2021 | **** | 55,000,000 | 400,701 | 5,270,258 | 22,174,939 | 3,242 | (472,314) | (2,924,223) | - | (713,039) | 78,739,564 | 1,257,245 | 79,996,808 |
| Employee Benefit<br> Plans | - | - | - | - | - | - | 101,588 | - | - | 101,588 | - | 101,588 | |
| Treasury<br> Shares | 20.d | - | 19,800 | - | - | - | - | - | - | (148,736) | (128,936) | - | (128,936) |
| Reservations<br> for Share - Based Payment | - | (41,679) | - | - | - | - | - | - | - | (41,679) | - | (41,679) | |
| Adjustment<br> to Fair Value - Securities and Derivative Financial Instruments | - | - | - | - | (372,315) | (102,296) | - | - | - | (474,611) | - | (474,611) | |
| Prescribed<br> Dividends | - | - | - | 25,555 | - | - | - | - | - | 25,555 | - | 25,555 | |
| Net<br> Income | - | - | - | - | - | - | - | 3,945,885 | - | 3,945,885 | - | 3,945,885 | |
| Allocations: | |||||||||||||
| Dividends | 20.b | - | - | - | (1,300,000) | - | - | - | - | - | (1,300,000) | - | (1,300,000) |
| Interest<br> on Capital | 20.b | - | - | - | - | - | - | - | (1,700,000) | - | (1,700,000) | - | (1,700,000) |
| Unrealized<br> Profit | - | - | - | 433,345 | - | - | - | (433,345) | - | - | - | - | |
| Non<br> Controlling Interest Results | 20.e | - | - | - | - | - | - | - | - | - | - | 36,527 | 36,527 |
| Others | - | - | - | 19,167 | - | - | - | - | - | 19,167 | 40,431 | 59,598 | |
| Balances as of march **** 31, 2022 | 55,000,000 | 378,822 | 5,270,258 | 21,353,005 | (369,073) | (574,610) | (2,822,635) | 1,812,540 | (861,775) | 79,186,532 | 1,334,203 | 80,520,735 | |
| Changes in the Period | - | (21,879) | - | (821,933) | (372,315) | (102,296) | 101,588 | 1,812,540 | (148,736) | 446,969 | 76,958 | 523,927 |
The accompanying notes from Management are an integral part of these financial statements.
Condensed Statement of Cash Flows
| Bank | Consolidated | |||||||
|---|---|---|---|---|---|---|---|---|
| 01/01 to 03/31/2022 | 01/01 to 03/31/2021 | 01/01 to 03/31/2022 | 01/01 to 03/31/2021 | |||||
| Notes | ||||||||
| Operational Activities | ||||||||
| Net Income | 3,917,375 | 2,976,576 | 3,945,885 | 2,816,264 | ||||
| Adjustment to Net Income | 3,079,554 | 40,819,268 | 5,089,550 | 37,395,971 | ||||
| Allowance<br> for Loan Losses | 8.e | 3,908,132 | 2,835,477 | 4,929,961 | 3,376,842 | |||
| Provision<br> for Legal Proceedings and Administrative and Legal Obligations | 19.c | 488,355 | 480,444 | 556,081 | 520,278 | |||
| Monetary<br> Adjustment of Provision for Legal Proceedings and Administrative and Legal<br> Obligations | 19.c | 191,416 | 132,279 | 223,399 | 143,021 | |||
| Deferred<br> Tax Credits and Liabilities | 0 | 894,346 | 273,930 | 702,905 | 247,349 | |||
| Equity<br> in Affiliates and Subsidiaries | 13 | (1,062,323) | (929,222) | (10,271) | (7,651) | |||
| Depreciation<br> and Amortization | 24 | 683,788 | 1,620,587 | 712,855 | 1,728,502 | |||
| Recognition<br> (Reversal) Allowance for Other Assets Losses | 27 | 2,479 | 18,445 | (8,388) | 13,295 | |||
| Gain<br> (Loss) on Sale of Other Assets | 27 | (25,197) | (17,990) | (11,264) | (14,775) | |||
| Gain<br> (Loss) on Sale of Investments | 27 | - | - | (6) | 5 | |||
| Monetary<br> Adjustment of Escrow Deposits | 25 | (119,624) | (28,355) | (148,361) | (33,408) | |||
| Recoverable<br> Taxes | 25 | (100,991) | (4,574) | (112,321) | (8,291) | |||
| Effects<br> of Changes in Foreign Exchange Rates on Cash and Cash Equivalents | - | 6,590 | - | 6,590 | ||||
| Effects<br> of Changes in Foreign Exchange Rates on Assets and Liabilities | (1,800,627) | 31,385,581 | (1,800,627) | 31,385,581 | ||||
| Others | 19,800 | 5,046,076 | 55,587 | 38,633 | ||||
| Changes on Assets and Liabilities | (30,820,943) | (36,446,336) | (30,361,193) | (21,185,217) | ||||
| Decrease<br> (Increase) in Interbank Investments | (9,236,227) | (848,067) | (15,155,998) | 3,487,076 | ||||
| Decrease<br> (Increase) in Securities and Derivative Financial Instruments | (6,059,056) | (3,738,123) | (6,891,553) | (2,738,243) | ||||
| Decrease<br> (Increase) in Lending and Leasing Operations | 3,989,202 | (13,962,811) | 4,125,340 | (16,495,073) | ||||
| Decrease<br> (Increase) in Others - Provisions for Expected Losses Associated with Credit<br> Risk | (155,086) | 195,532 | (173,622) | (128,299) | ||||
| Decrease<br> (Increase) in Deposits on Central Bank of Brazil | 4,803,243 | (326,076) | 4,818,499 | (332,959) | ||||
| Decrease<br> (Increase) in Other Financial Assets | 99,196,918 | 7,426,251 | 100,016,175 | 3,861,376 | ||||
| Decrease<br> (Increase) in Prepaid Expenses | (581,553) | (67,704) | (599,271) | 37,341 | ||||
| Decrease<br> (Increase) in Other Assets | (348,389) | 2,276,885 | (649,784) | 8,247,035 | ||||
| Decrease<br> (Increase) in Current Tax Assets | (488,513) | (157,609) | (698,607) | (69,234) | ||||
| Net<br> Change on Other Interbank and Interbranch Accounts | (1,927,531) | (2,350,861) | (1,907,959) | 12,556,712 | ||||
| Increase<br> (Decrease) in Deposits | (9,508,997) | (6,309,634) | (10,024,977) | (6,610,983) | ||||
| Increase<br> (Decrease) in Money Market Funding | 13,196,159 | 11,991,407 | 13,595,524 | 10,426,344 | ||||
| Increase<br> (Decrease) in Borrowings | (7,554,846) | 13,669,247 | (7,535,438) | 13,629,447 | ||||
| Increase<br> (Decrease) in Other Financial Liabilities | (98,249,624) | (38,153,696) | (98,747,654) | (34,747,327) | ||||
| Increase<br> (Decrease) in Other Liabilities | (17,631,882) | (5,915,089) | (9,669,698) | (11,632,570) | ||||
| Increase<br> (Decrease) in Current Tax Liabilities | 95,740 | (179,701) | 704,251 | 345,632 | ||||
| Increase<br> (Decrease) in Change in Deferred Income | (360,501) | 3,713 | (382,255) | 2,377 | ||||
| Income<br> Tax Recovered/(Paid) | - | - | (1,184,166) | (1,023,869) | ||||
| Net Cash Provided by (Used in) Operational Activities | (23,824,014) | 7,349,508 | (21,325,758) | 19,027,018 | ||||
| Investing Activities | ||||||||
| Acquisition<br> of Residual Minority Interest in Subsidiary | 0 | (365,108) | - | (7,984) | - | (8,363) | - | (13,197) |
| Purchase<br> Acquisition | - | - | - | - | (1,422) | - | - | |
| Purchase<br> of Fixed Assets | (131,796) | - | (178,156) | - | (136,625) | - | (180,706) | |
| Purchase<br> and Disposal of Intangible Assets | (52,380) | - | (71,181) | - | 217,119 | - | 1,677 | |
| Net<br> Cash Received on Sale/Reduction of Investments | - | - | 17 | - | 51 | - | 22 | |
| Disposal<br> of Subsidiary, less net cash on disposal | - | - | - | - | 1,360 | - | - | |
| Disposal<br> of Interests in Affiliates and Subsidiaries | 255 | - | 2,131,766 | - | (344,887) | - | - | |
| Dividends and Interest on<br> Capital Received | - | - | 48,137 | - | 3,918 | - | (5,165) | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Disposal<br> of Non-Financial Assets Held for Sale | 166,536 | - | 193,045 | - | 178,084 | - | 195,591 | |
| Disposal<br> of Fixed Assets | 205,898 | - | 17,679 | - | 220,134 | - | 635,521 | |
| Net Cash Provided by (Used in) Investing Activities | (176,595) | 2,133,323 | 129,369 | 633,743 | ||||
| Financing Activities | ||||||||
| Purchase<br> of Own Share | 20.d | (148,736) | 81,588 | (148,736) | 81,588 | |||
| Issuance<br> of Long - Term Emissions | 31,214,673 | 26,324,227 | 28,246,962 | 24,981,015 | ||||
| Long -<br> Term Payments | (7,704,180) | (26,614,049) | (7,753,791) | (26,529,211) | ||||
| Dividends<br> and Interest on Capital Paid | (2,730,090) | (1,054,825) | (2,730,090) | (9,848,122) | ||||
| Net Cash Provided by (Used in) Financing Activities | 20,631,667 | (1,263,059) | 17,614,345 | (11,314,730) | ||||
| Exchange Variation on Cash and Cash Equivalents | - | (6,590) | - | (6,590) | ||||
| Increase (Decrease) in Cash and Cash Equivalents | (3,368,942) | 8,213,182 | (3,582,044) | 8,339,441 | ||||
| Cash and Cash Equivalents at the Beginning of period | 4 | 34,297,636 | 29,191,171 | 33,650,339 | 28,999,315 | |||
| Cash and Cash Equivalents at the End of period | 4 | 30,928,694 | 37,404,353 | 30,068,295 | 37,338,756 |
The accompanying notes from Management are an integral part of these financial statements.
Condensed Value Added Statement
| Bank | Consolidated | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 01/01 to 03/31/2022 | 01/01 to 03/31/2021 | 01/01 to 03/31/2022 | 01/01 to 03/31/2021 | ||||||
| Notes | |||||||||
| Income<br> Related to Financial Operations | (9,070,965) | 35,554,559 | (5,695,103) | 37,756,910 | |||||
| Income<br> Related to Bank Charges and Banking Service Fees | 22 | 3,801,771 | 3,708,560 | 4,617,222 | 4,851,976 | ||||
| Allowance<br> for Loans Losses | 8.e | (3,908,132) | (2,835,477) | (4,929,961) | (3,376,842) | ||||
| Other<br> Revenues and Expenses | (1,372,102) | (1,680,740) | (1,628,180) | (2,120,334) | |||||
| Financial<br> Expenses | 20,113,954 | (26,339,407) | 19,788,318 | (26,439,847) | |||||
| Third-party<br> Input | (2,169,002) | (1,998,234) | (2,164,258) | (2,119,015) | |||||
| Materials,<br> Energy and Others | (98,965) | (61,714) | (105,978) | (66,196) | |||||
| Third-Party<br> Services | 24 | (573,699) | (542,592) | (559,642) | (632,702) | ||||
| Others | (1,496,338) | (1,393,928) | (1,498,638) | (1,420,117) | |||||
| Gross Added Value | 7,395,524 | 6,409,261 | 9,988,038 | 8,552,848 | |||||
| Retentions | |||||||||
| Depreciation<br> and Amortization | 24 | (683,788) | (1,620,587) | (712,855) | (1,728,502) | ||||
| Added Value Produced Net | 6,711,736 | 4,788,674 | 9,275,183 | 6,824,347 | |||||
| Added<br> Value Received from Transfer Investments in Affiliates and Subsidiaries | 13.b | 1,062,323 | 929,222 | 10,271 | 7,651 | ||||
| Added Value to Distribute | 7,774,059 | 5,717,896 | 9,285,454 | 6,831,998 | |||||
| Added Value Distribution | |||||||||
| Employee | 1,814,273 | 23.3% | 1,736,556 | 30.4% | 2,220,850 | 23.9% | 2,021,733 | 29.6% | |
| Compensation | 23 | 920,463 | 846,795 | 1,251,085 | 998,914 | ||||
| Benefits | 23 | 295,852 | 293,713 | 396,089 | 343,489 | ||||
| Government<br> Severance Indemnity Funds for Employees - FGTS | 90,664 | 81,816 | 115,134 | 99,721 | |||||
| Others | 507,294 | 514,232 | 458,542 | 579,608 | |||||
| Taxes and<br> Contributions | 1,822,394 | 23.4% | 806,023 | 14.1% | 2,858,889 | 30.8% | 1,768,140 | 25.9% | |
| Federal | 1,648,354 | 637,485 | 2,639,736 | 1,552,566 | |||||
| State | 143 | 165 | 230 | 194 | |||||
| Municipal | 173,896 | 168,373 | 218,922 | 215,380 | |||||
| Compensation<br> of Third-Party Capital - Rental | 24 | 220,018 | 2.8% | 198,742 | 3.5% | 223,303 | 2.4% | 200,603 | 2.9% |
| Remuneration<br> of Interest on Capital | 3,917,375 | 50.4% | 2,976,576 | 52.0% | 3,982,412 | 42.9% | 2,841,522 | 41.6% | |
| Dividends | 20.b | 1,300,000 | - | 1,300,000 | - | ||||
| Interest<br> on Equity | 20.b | 1,700,000 | - | 1,700,000 | - | ||||
| Profit<br> Reinvestment | 917,375 | 2,976,576 | 1,018,939 | 2,866,780 | |||||
| Participation<br> Results of Non-Controlling Stockholders | 20.e | - | - | (36,527) | (25,258) | ||||
| Total | 7,774,060 | 100.0% | 5,717,896 | 100.0% | 9,285,454 | 100.0% | 6,831,998 | 100.0% |
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.
2. Presentation of Financial Statements
The condensed individual and condensed 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 come into force 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 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);
· 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;
· 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); and
· Analytical Balance Sheet - Individual Position of Equity Interest Abroad (document 4313) will be simplified.
In November 2021, CMN Resolution No. 4,966 was published, which deals with the accounting concepts and criteria applicable to financial instruments, as well as for the designation and recognition of hedging relationships (hedge accounting) seeking the convergence of the accounting criterion of the COSIF for the requirements of the international standard of IFRS 9. The Resolution enters into force on January 1, 2025, and Banco Santander, together with the market and the Central Bank, has already started the impact assessments and necessary changes to meet its implementation and on the identification and treatment of expected impacts.
CMN Resolution No. 4,967, which was published in November 2021, determines criteria for the recognition, measurement and accounting disclosure of investment properties and non-financial assets acquired for the purpose of future sale and profit generation based on changes in its prices on the market, the Resolution that came into force on January 1, 2022, is already the object of evaluation and analysis by Banco Santander to consider its impacts and the procedures to be established.
In December 2021, the Central Bank of Brazil published Resolution CMN No. 4,975, which establishes compliance with the Technical pronouncement of the Accounting Pronouncements Committee (CPC) 06 (R2) – Leases, in recognition, in the mensuration, * Values expressed in thousands, except when indicated. Individual and Consolidated Financial Statements | December 31, 2021 | 33 presentation and disclosure of leasing operations, which becomes effective on January 1, 2025. Banco Santander started the impact assessments and changes that will be due to adapt to the requirements of the resolution.
The Individual and Consolidated 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 consolidated financial statements, the equity interests, the relevant balances receivable and payable, the income and expenses arising from transactions between branches in the country, branch abroad and subsidiaries, the unrealized results between these companies and highlighted the participation of minority shareholders in shareholders' equity and income.
The preparation of the financial statements requires the adoption of estimates by the Management, impacting certain assets and liabilities, disclosures about provisions and contingent liabilities and income and expenses in the periods shown. Since Management's judgment involves estimates referring to 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 lawsuits , civil, tax and labor, pension plan and the fair value of financial assets.
The Board of Directors authorized the issuance of individual and consolidated financial statements for the period ended March 31, 2022, at the meeting held on April 25, 2022.
The Consolidated Financial Statements prepared based on the international accounting standard issued by the International Accounting Standards Board (IASB) for the period ended March 31, 2022, will be published, within the legal term, at the electronic address 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 March 31, 2022. With the exception of the changes mentioned in the following paragraphs, the other accounting practices adopted by the Bank are described in explanatory note 3 of the Individual Financial Statements and Consolidated as of December 31, 2021.
a) Investments
CMN Resolution No. 4,817/2020, which deals with criteria for accounting measurement and recognition of investments in associates, subsidiaries and joint ventures, 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 goes into effect in January 2022 and Banco Santander continues to assess impacts and necessary changes, with no expectation of material impacts from this change.
b) Conversionof Fees
CMN Resolution No. 4,924/2021, effective as of January 2022, consolidates and provides for general principles for accounting recognition, measurement, bookkeeping and disclosure of the content of the resolution, the main changes brought refer to the 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 the 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 ofAccounts (Cosif)
BCB Resolution No. 92/2021 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 transferred to the line of Other Liabilities.
4.
Cash and Cash Equivalents
| Bank | ||||
|---|---|---|---|---|
| 3/31/2022 | 12/31/2021 | 3/31/2021 | 12/31/2020 | |
| Cash | 7,630,025 | 16,361,758 | 14,421,734 | 19,522,250 |
| Interbank Investments | 23,298,669 | 17,935,878 | 22,982,619 | 9,668,922 |
| Money<br> Market Investments | 8,810,834 | 15,055,356 | 4,848,153 | 7,348,568 |
| Interbank<br> Deposits | 1,957,348 | 1,655,705 | 1,179,585 | 1,131,436 |
| Foreign<br> Currency Investments | 12,530,487 | 1,224,817 | 16,954,881 | 1,188,917 |
| Total | 30,928,694 | 34,297,636 | 37,404,353 | 29,191,171 |
| Consolidated | ||||
| 3/31/2022 | 12/31/2021 | 3/31/2021 | 12/31/2020 | |
| Cash | 7,669,409 | 16,386,974 | 14,434,212 | 19,512,315 |
| Interbank Investments | 22,398,886 | 17,263,365 | 22,904,544 | 9,487,000 |
| Money<br> Market Investments | 8,810,834 | 15,055,356 | 4,848,153 | 7,306,408 |
| Interbank<br> Deposits | 1,057,565 | 983,192 | 1,101,510 | 991,675 |
| Foreign<br> Currency Investments | 12,530,487 | 1,224,817 | 16,954,881 | 1,188,917 |
| Total | 30,068,295 | 33,650,339 | 37,338,756 | 28,999,315 |
The information related to December 31, 2020 is presented to inform the composition of the opening balances of Cash and Cash Equivalents presented in the Cash Flow Statements.
5.
Interbank Investments
| Bank | |||||
|---|---|---|---|---|---|
| 3/31/2022 | 12/31/2021 | ||||
| Up to 3 Months | From 3 to 12 Months | Over 12 Months | Total | Total | |
| Money Market Investments | 32,110,066 | 2,484,657 | - **** | 34,594,723 | 25,883,579 |
| Own Portfolio | 3,750,218 | - **** | - **** | 3,750,218 | 7,066,196 |
| Financial<br> Treasury Bills - LFT | 377,988 | - | - | 377,988 | 706,245 |
| National<br> Treasury Bills - LTN | 1,274,596 | - | - | 1,274,596 | 1,556,526 |
| National<br> Treasury Notes - NTN | 2,097,634 | - | - | 2,097,634 | 4,803,425 |
| Third-party Portfolio | 11,174,317 | 1,885,944 | - **** | 13,060,261 | 6,638,709 |
| Financial<br> Treasury Bills - LFT | 4,550,384 | 1,301,286 | - | 5,851,670 | 500,173 |
| National<br> Treasury Bills - LTN | 6,623,933 | 584,658 | - | 7,208,591 | 4,644,361 |
| National<br> Treasury Notes - NTN | - | - | - | - | 1,494,175 |
| Sold Position | 17,185,531 | 598,713 | - **** | 17,784,244 | 12,178,674 |
| National<br> Treasury Bills - LTN | 3,812,836 | 598,713 | - | 4,411,549 | 2,772,317 |
| National<br> Treasury Notes - NTN | 13,372,695 | - | - | 13,372,695 | 8,792,071 |
| Financial<br> Treasury Bills - LFT | - | - | - | - | 614,286 |
| Interbank Deposits | 15,117,868 | 38,847,308 | 32,569,389 | 86,534,565 | 91,952,361 |
| Foreign Currency Investments | 12,530,487 | - **** | - **** | 12,530,487 | 1,224,817 |
| Total | 59,758,421 | 41,331,965 | 32,569,389 | 133,659,775 | 119,060,757 |
| Consolidated | |||||
| 3/31/2022 | 12/31/2021 | ||||
| Up to 3 Months | From 3 to 12 Months | Over 12 Months | Total | Total | |
| Money Market Investments | 32,139,413 | - **** | - **** | 34,624,070 | 25,912,368 |
| Own Portfolio | 3,779,216 | - **** | - **** | 3,779,216 | 7,094,986 |
| Financial<br> Treasury Bills - LFT | 377,989 | - | - | 377,989 | 706,245 |
| National<br> Treasury Bills - LTN | 1,303,593 | - | - | 1,303,593 | 1,585,316 |
| National<br> Treasury Notes - NTN | 2,097,634 | - | - | 2,097,634 | 4,803,425 |
| Third-party Portfolio | 11,174,667 | 1,885,943 | - **** | 13,060,610 | 6,638,709 |
| Financial<br> Treasury Bills - LFT | 4,550,734 | 1,301,286 | - | 5,852,020 | 500,173 |
| National<br> Treasury Bills - LTN | 6,623,933 | 584,657 | - | 7,208,590 | 4,644,361 |
| National<br> Treasury Notes - NTN | - | - | - | - | 1,494,175 |
| Sold Position | 17,185,531 | 598,713 | - **** | 17,784,244 | 12,178,673 |
| National<br> Treasury Bills - LTN | 3,812,836 | 598,713 | - | 4,411,549 | 2,772,317 |
| National<br> Treasury Notes - NTN | 13,372,695 | - | - | 13,372,695 | 8,792,071 |
| Financial<br> Treasury Bills - LFT | - | - | - | - | 614,286 |
| Interbank Deposits | 2,213,763 | 2,292,225 | 2,260,292 | 6,766,280 | 6,492,133 |
| Foreign Currency Investments | 12,530,487 | - **** | - **** | 12,530,487 | 1,224,817 |
| Total | 46,883,663 | 2,292,225 | 2,260,292 | 53,920,837 | 33,629,318 |
6.
Securities and Derivatives Financial Instruments
a) Securities
I) By Category
| Bank | Consolidated | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | |||||||
| 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 | 55,024,471 | (85,674) | - | 54,938,797 | 43,030,702 | 67,481,354 | (57,713) | - | 67,423,641 | 54,550,213 |
| Government<br> Securities | 52,886,425 | (25,212) | - | 52,861,213 | 41,914,956 | 62,355,664 | (25,225) | - | 62,330,439 | 51,360,529 |
| Private<br> Securities | 2,138,046 | (60,462) | - | 2,077,584 | 1,115,746 | 5,125,690 | (32,488) | - | 5,093,202 | 3,189,684 |
| Available-for-Sale Securities | 144,493,815 | - | (3,569,157) | 140,924,658 | 149,877,343 | 153,699,177 | 2,375 | (4,452,154) | 149,249,398 | 157,876,639 |
| Government<br> Securities | 106,260,538 | - | (3,820,805) | 102,439,733 | 113,510,140 | 116,119,684 | 2,375 | (4,708,583) | 111,413,476 | 122,306,684 |
| Private<br> Securities | 38,233,277 | - | 251,648 | 38,484,925 | 36,367,203 | 37,579,493 | - | 256,429 | 37,835,922 | 35,569,955 |
| Held-to-Maturity Securities | 12,493,681 | - | - | 12,493,681 | 15,729,130 | 12,493,681 | - | - | 12,493,681 | 15,279,130 |
| Government<br> Securities | 11,779,211 | - | - | 11,779,211 | 13,871,974 | 11,779,211 | - | - | 11,779,211 | 13,871,974 |
| Private<br> Securities | 714,470 | - | - | 714,470 | 1,407,156 | 714,470 | - | - | 714,470 | 1,407,156 |
| Total Securities | 212,011,967 | (85,674) | (3,569,157) | 208,357,136 | 208,187,175 | 233,674,212 | (55,338) | (4,452,154) | 229,166,720 | 227,705,982 |
II) Trading Securities
| Bank | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 03/31/2022 | 12/31/2021 | By Maturity | 03/31/2022 | |||||||
| 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 | 52,886,425 | (25,212) | 52,861,213 | 41,914,956 | - | 1,401,712 | 17,287,209 | 9,054,605 | 25,117,687 | 52,861,213 |
| Financial<br> Treasury Bills - LFT | 1,164,916 | 2,638 | 1,167,554 | 3,341,790 | - | 14,014 | 357,374 | 25,710 | 770,456 | 1,167,554 |
| National<br> Treasury Bills - LTN | 14,533,682 | (8,629) | 14,525,053 | 12,531,398 | - | 1,071,467 | 10,331,435 | 3,260,024 | (137,873) | 14,525,053 |
| National<br> Treasury Notes - NTN | 37,094,175 | (18,992) | 37,075,183 | 24,340,120 | - | 293,929 | 6,549,053 | 5,758,099 | 24,474,102 | 37,075,183 |
| Agricultural<br> Debt Securities - TDA | 23,480 | (197) | 23,283 | 23,972 | - | 1,045 | 7,682 | 10,768 | 3,788 | 23,283 |
| Brazilian<br> Foreign Debt Notes | 63,411 | (108) | 63,303 | 1,673,785 | - | 21,257 | 41,661 | 3 | 382 | 63,303 |
| Debentures | 6,761 | 76 | 6,837 | 3,891 | - | - | 4 | 1 | 6,832 | 6,837 |
| Private Securities | 2,138,046 | (60,462) | 2,077,584 | 1,115,746 | 495,599 | 529 | 3,826 | 131,418 | 1,446,212 | 2,077,584 |
| Shares | 13,773 | (322) | 13,451 | 13,692 | 13,451 | - | - | - | - | 13,451 |
| Certificates<br> of Agribusiness Receivables - CRA | 48,020 | 48 | 48,068 | 11,502 | - | 469 | 672 | 11,495 | 35,432 | 48,068 |
| Certificates<br> of Real Estate Receivables - CRI | 42,860 | 140 | 43,000 | 57,603 | - | - | 1,808 | 142 | 41,050 | 43,000 |
| Investment<br> Fund Shares | 470,338 | 11,810 | 482,148 | 400,331 | 482,148 | - | - | - | - | 482,148 |
| Debentures | 1,563,055 | (72,138) | 1,490,917 | 632,618 | - | 60 | 1,346 | 119,781 | 1,369,730 | 1,490,917 |
| Total | 55,024,471 | (85,674) | 54,938,797 | 43,030,702 | 495,599 | 1,402,241 | 17,291,035 | 9,186,023 | 26,563,899 | 54,938,797 |
| Consolidated | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 03/31/2022 | 12/31/2021 | By Maturity | 03/31/2022 | |||||||
| 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 | 62,355,664 | (25,225) | 62,330,439 | 51,360,528 | - | 1,401,713 | 20,329,112 | 12,304,607 | 28,295,007 | 62,330,439 |
| Financial<br> Treasury Bills - LFT | 8,299,923 | 6,478 | 8,306,401 | 10,566,700 | - | 14,014 | 3,399,273 | 3,275,712 | 1,617,402 | 8,306,401 |
| National<br> Treasury Bills - LTN | 14,533,682 | (8,629) | 14,525,053 | 12,531,398 | - | 1,071,467 | 10,331,435 | 3,260,024 | (137,873) | 14,525,053 |
| National<br> Treasury Notes - NTN | 39,428,407 | (22,845) | 39,405,562 | 26,560,782 | - | 293,929 | 6,549,054 | 5,758,099 | 26,804,480 | 39,405,562 |
| Agricultural<br> Debt Securities - TDA | 23,480 | (197) | 23,283 | 23,972 | - | 1,046 | 7,683 | 10,768 | 3,786 | 23,283 |
| Brazilian<br> Foreign Debt Bonds | 63,411 | (108) | 63,303 | 1,673,785 | - | 21,257 | 41,662 | 3 | 381 | 63,303 |
| Debentures | 6,761 | 76 | 6,837 | 3,891 | - | - | 5 | 1 | 6,831 | 6,837 |
| Private Securities | 5,125,690 | (32,488) | 5,093,202 | 3,189,685 | 2,789,079 | 529 | 3,826 | 197,621 | 2,102,147 | 5,093,202 |
| Shares | 2,263,468 | 7,959 | 2,271,427 | 1,502,576 | 2,271,427 | - | - | - | - | 2,271,427 |
| Investment<br> Fund Shares | 505,842 | 11,810 | 517,652 | 438,074 | 517,652 | - | - | - | - | 517,652 |
| Debentures | 2,199,297 | (52,445) | 2,146,852 | 1,076,252 | - | 60 | 1,346 | 119,781 | 2,025,665 | 2,146,852 |
| Certificates<br> of Real Estate Receivables - CRI | 42,860 | 140 | 43,000 | 57,603 | - | - | 1,808 | 142 | 41,050 | 43,000 |
| Certificates<br> of Agribusiness Receivables - CRA | 48,020 | 48 | 48,068 | 11,502 | - | 469 | 672 | 11,495 | 35,432 | 48,068 |
| Bill of<br> Exchange | 66,203 | - | 66,203 | 103,678 | - | - | - | 66,203 | - | 66,203 |
| Total | 67,481,354 | (57,713) | 67,423,641 | 54,550,213 | 2,789,079 | 1,402,242 | 20,332,938 | 12,502,228 | 30,397,154 | 67,423,641 |
*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 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 03/31/2022 | 12/31/2021 | By Maturity | 03/31/2022 | ||||||||
| 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 | 106,260,538 | - | (3,820,805) | 102,439,734 | 113,510,139 | - | 9,180,423 | 20,925,813 | 27,628,613 | 44,704,885 | 102,439,734 |
| Treasury<br> Certificates - CFT | - | - | - | - | 742 | - | - | - | - | - | - |
| Securitized<br> Credit | 10 | - | (11) | - | - | - | 11 | - | - | (11) | - |
| Financial<br> Treasury Bills - LFT | 13,915,080 | - | (1,310,513) | 12,604,567 | 38,317,693 | - | (274,044) | (532,753) | 13,865,037 | (453,673) | 12,604,567 |
| National<br> Treasury Bills - LTN (3) | 39,257,684 | - | 138,233 | 39,395,917 | 16,532,828 | - | 8,659,448 | 1,436,798 | 255,245 | 29,044,426 | 39,395,917 |
| National<br> Treasury Notes - NTN (2)(3) | 31,379,609 | - | (2,346,405) | 29,033,204 | 38,448,233 | - | 238,481 | 117,667 | 13,508,331 | 15,168,725 | 29,033,204 |
| Brazilian<br> Foreign Debt Bonds | 1,954,133 | - | (2,732) | 1,951,401 | 2,274,913 | - | 556,538 | 449,456 | - | 945,407 | 1,951,401 |
| Spanish<br> Foreign Debt Bonds | 17,748,995 | - | (323,593) | 17,425,402 | 15,606,719 | - | - | 17,425,402 | - | - | 17,425,402 |
| Mexican<br> Foreign Debt Bonds | 2,005,027 | - | 24,216 | 2,029,243 | 2,329,011 | - | - | 2,029,243 | - | - | 2,029,243 |
| Private Securities | 38,233,277 | - | 251,648 | 38,484,925 | 36,367,203 | 14,486,463 | 1,605,699 | 3,090,461 | 9,480,504 | 9,821,798 | 38,484,925 |
| Shares | 15,325 | - | (271) | 15,054 | 49 | 15,054 | - | - | - | - | 15,054 |
| Investment<br> Funds | 13,165,869 | - | (451,522) | 12,714,347 | 9,597,656 | 12,679,659 | 1,035 | 2,754 | 12,413 | 18,486 | 12,714,347 |
| Investment<br> Fund Real Estate | 127,005 | - | 25,161 | 152,166 | 151,514 | - | - | - | 127,394 | 24,772 | 152,166 |
| Debentures<br> (1) | 2,654 | - | 8 | 2,662 | 2,784 | - | - | (2) | 2 | 2,662 | 2,662 |
| Promissory<br> Notes - NP | 1,599,133 | - | - | 1,599,133 | 1,637,742 | 1,599,133 | - | - | - | - | 1,599,133 |
| Financial<br> Bills - LF | 164,716 | - | - | 164,716 | 169,064 | 164,716 | - | - | - | - | 164,716 |
| Certificates<br> of Real Estate Receivables - CRI | 18,583,124 | - | 670,852 | 19,253,976 | 19,306,649 | - | 1,348,902 | 2,149,629 | 5,979,567 | 9,775,878 | 19,253,976 |
| Certificates<br> of Agribusiness Receivables - CRA | 2,863,615 | - | 30,848 | 2,894,463 | 3,553,157 | - | - | - | 2,894,463 | - | 2,894,463 |
| Eurobonds | 170,425 | - | (3,121) | 167,304 | 273,905 | - | - | 167,304 | - | - | 167,304 |
| Rural<br> Product Note - CPR | 1,541,411 | - | (20,307) | 1,521,104 | 1,674,683 | 27,901 | 255,762 | 770,774 | 466,667 | - | 1,521,104 |
| Total | 144,493,815 | - | (3,569,157) | 140,924,658 | 149,877,342 | 14,486,463 | 10,786,133 | 24,016,272 | 37,109,119 | 54,526,672 | 140,924,658 |
| Consolidated | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 03/31/2022 | 12/31/2021 | By Maturity | 03/31/2022 | ||||||||
| 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 | 116,119,684 | 2,375 | (4,708,583) | 111,413,476 | 122,306,684 | - | 9,180,434 | 24,031,748 | 29,966,954 | 48,234,340 | 111,413,476 |
| Treasury<br> Certificates - CFT | - | - | - | - | 742 | - | - | - | - | - | - |
| Securitized<br> Credit | 11 | - | (11) | - | - | - | 11 | - | - | (11) | - |
| Financial<br> Treasury Bills - LFT | 42,432,870 | - | 137,851 | 42,570,721 | 41,036,255 | - | 8,659,448 | 3,687,820 | 677,787 | 29,545,666 | 42,570,721 |
| National<br> Treasury Bills - LTN | 16,534,068 | 2,375 | (1,411,480) | 15,124,963 | 19,384,448 | - | (274,044) | 322,161 | 15,530,519 | (453,673) | 15,124,963 |
| National<br> Treasury Notes - NTN | 35,444,579 | - | (3,132,833) | 32,311,746 | 41,674,596 | - | 238,481 | 117,667 | 13,758,647 | 18,196,951 | 32,311,746 |
| Brazilian<br> Foreign Debt Bonds | 1,954,133 | - | (2,732) | 1,951,401 | 2,274,913 | - | 556,538 | 449,456 | - | 945,407 | 1,951,401 |
| Spanish<br> Foreign Debt Bonds | 17,748,995 | - | (323,593) | 17,425,402 | 15,606,719 | - | - | 17,425,401 | 1 | - | 17,425,402 |
| Mexican<br> Foreign Debt Bonds | 2,005,028 | - | 24,215 | 2,029,243 | 2,329,011 | - | - | 2,029,243 | - | - | 2,029,243 |
| Private Securities | 37,579,493 | - | 256,429 | 37,835,922 | 35,569,955 | 14,028,881 | 1,605,699 | 3,090,460 | 9,480,504 | 9,630,378 | 37,835,922 |
| Shares | 15,325 | - | (271) | 15,054 | 51 | 15,054 | - | - | - | - | 15,054 |
| Investment<br> Fund Shares | 1,274,833 | - | - | 1,274,833 | 1,306,605 | 1,274,833 | - | - | - | - | 1,274,833 |
| Investment<br> Fund Real Estate | 30,088 | - | (1,246) | 28,842 | 31,384 | 28,842 | - | - | - | - | 28,842 |
| Debentures<br> (1) | 18,385,677 | - | 676,879 | 19,062,556 | 18,976,693 | - | 1,348,902 | 2,149,628 | 5,979,567 | 9,584,459 | 19,062,556 |
| Eurobonds | 2,863,615 | - | 30,848 | 2,894,463 | 3,553,157 | - | - | - | 2,894,463 | - | 2,894,463 |
| Promissory<br> Notes - NP | 1,541,411 | - | (20,307) | 1,521,104 | 1,674,683 | 27,901 | 255,762 | 770,774 | 466,667 | - | 1,521,104 |
| Financial<br> Bills - LF | 170,425 | - | (3,121) | 167,304 | 273,905 | - | - | 167,304 | - | - | 167,304 |
| Certificates<br> of Real Estate Receivables - CRI | 2,654 | - | 8 | 2,662 | 2,784 | - | - | - | - | 2,662 | 2,662 |
| Certificates<br> of Agribusiness Receivables - CRA | 127,005 | - | 25,161 | 152,166 | 151,514 | - | - | - | 127,394 | 24,772 | 152,166 |
| Bank<br> Deposit Certificates - CDB | 2,592 | - | - | 2,592 | 1,524 | 2,592 | - | - | - | - | 2,592 |
| Rural<br> Product Note - CPR | 13,165,868 | - | (451,522) | 12,714,346 | 9,597,655 | 12,679,659 | 1,035 | 2,754 | 12,413 | 18,485 | 12,714,346 |
| Total | 153,699,177 | 2,375 | (4,452,154) | 149,249,398 | 157,877,538 | 14,028,881 | 10,786,133 | 27,122,208 | 39,447,458 | 57,864,718 | 149,249,398 |
(1) In the Bank and Consolidated, includes securities issued by a mixed capital company and R$ 61,570 (12/31/2021
- R$ 67,606) in securities available for sale.
(2) On March 31, 2022, the amount of 730,088 in the amount of R$708,475 (12/31/2021 - 913,500 in the amount of R$858,663) of National Treasury Notes - NTN, are linked to the obligation assumed by Banco Santander to cover the reserves to be amortized from the Pension Plans with the BANESPREV entity.****
IV) Held-to-Maturity Securities
| Bank/Consolidated | ||||||
|---|---|---|---|---|---|---|
| By Maturity | 03/31/2022 | |||||
| Amortized Cost | From 3 to 12 Months | From 1 to 3 Years | Over 3 Years | |||
| Held-to-Maturity Securities (1) | 03/31/2022 | 12/31/2021 | Total | |||
| Government Securities | 11,779,211 | 13,871,973 | 578,607 | 9,403,952 | 1,796,652 | 11,779,211 |
| National<br> Treasury Notes - NTN | 4,147,448 | 4,822,599 | - | 4,136,195 | 11,253 | 4,147,448 |
| Brazilian<br> Foreign Debt Bonds | 7,631,763 | 9,049,375 | 578,607 | 5,267,757 | 1,785,399 | 7,631,763 |
| Private Securities | 714,470 | 1,407,156 | 714,470 | - | - | 714,470 |
| Certificates<br> of Agribusiness Receivables - CRA | 714,470 | 1,407,156 | 714,470 | - | - | 714,470 |
| Total | 12,493,681 | 15,279,130 | 1,293,077 | 9,403,952 | 1,796,652 | 12,493,681 |
(1) The market value of securities held to maturity is R$ 12,493,681 (12/31/2021 - R$14,993,443).
For the period ended March 31, 2022, there were no sales of federal government bonds and other securities classified in the held-to-maturity category.
In compliance with the provisions of article 5 of Bacen Circular 3068/2001, Banco Santander has the financial capacity and the intention to hold securities classified in the held-to-maturity category until maturity.
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 - SecuritiesTransactions
| Bank | Consolidated | |||
|---|---|---|---|---|
| 01/01 to<br><br>03/31/2022 **** | 01/01 to<br><br>03/31/2021 | 01/01 to<br><br>03/31/2022 **** | 01/01 to<br><br>03/31/2021 | |
| Income<br> From Fixed-Income Securities (1) | (10,437,299) | 13,129,355 | (10,230,329) | 13,285,157 |
| Income<br> From Interbank Investments | 2,517,991 | 3,392,675 | 769,514 | 2,637,923 |
| Income<br> From Variable-Income Securities | 7,625 | (13,321) | 239,529 | 92,112 |
| Financial<br> Income of Pension and Capitalization | - | - | 56,080 | 53,200 |
| Provision<br> for Impairment Losses (2) | (26,815) | (11,689) | (22,248) | (11,689) |
| Others<br> (3) | 419,493 | (449,784) | 408,788 | (431,299) |
| Total | (7,519,005) | 16,047,237 | (8,778,666) | 15,625,403 |
(1) Includes exchange variation expense in the amount of R$15,079,184 in the Bank and Consolidated (2021 - revenue of R$11,672,281 in the Bank and Consolidated).
(2) Corresponds to the recording of permanent loss, referring to securities classified as available for sale.
(3) Includes revenue from exchange rate variation and net appreciation of investment and equity fund quotas in the amount of R$ 408,666 in the Bank and Consolidated (2021 - exchange variation expense and net appreciation of investment fund quotas and participations in the amount of R$ 432,576 in the Bank and Consolidated).
b) DerivativesFinancial 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 ofDerivative 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 | |||||||
|---|---|---|---|---|---|---|---|---|
| 3/31/2022 | 12/31/2021 | 3/31/2022 | 12/31/2021 | |||||
| Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |
| Swap -<br> Differential Receivable | 16,970,327 | 19,999,943 | 14,499,987 | 16,194,023 | 8,121,218 | 11,880,459 | 7,641,355 | 8,538,705 |
| Options<br> to Exercise Awards | 1,513,014 | 1,996,178 | 1,548,530 | 2,202,234 | 1,262,809 | 2,073,454 | 1,370,541 | 2,256,244 |
| Term<br> Contract and Other Contracts | 19,683,321 | 14,878,680 | 12,892,381 | 13,759,082 | 20,537,239 | 15,815,448 | 12,077,828 | 13,852,282 |
| Total | 38,166,662 | 36,874,801 | 28,940,898 | 32,155,339 | 29,921,266 | 29,769,361 | 21,089,724 | 24,647,231 |
II) DerivativesRecorded in Memorandum Accounts and Balance Sheets
| Bank | ||||||
|---|---|---|---|---|---|---|
| 03/31/2022 | 12/31/2021 | |||||
| Trading | Notional (1) | Cost | Fair Value | Notional (1) | Cost | Fair Value |
| Swap | 812,045,168 | (10,646,256) | (3,029,615) | 837,762,019 | (1,804,602) | (1,694,036) |
| Assets | 400,699,456 | 13,147,376 | 16,970,327 | 418,137,448 | 13,189,437 | 14,499,987 |
| CDI<br> (Interbank Deposit Rates) | 85,928,266 | 4,539,542 | 7,425,115 | 66,837,268 | 318,541 | 1,826,150 |
| Fixed<br> Interest Rate - Real | 93,764,860 | 4,465,354 | 5,279,152 | 231,741,021 | 9,269,271 | 8,932,246 |
| Indexed<br> to Price and Interest Rates | - | - | - | 2,089,110 | 799,550 | 298,439 |
| Foreign<br> Currency | 221,006,329 | 4,142,480 | 4,266,060 | 91,837,446 | 2,775,313 | 3,205,330 |
| Others | - | - | - | 25,632,603 | 26,763 | 237,822 |
| Liabilities | 411,345,712 | (23,793,633) | (19,999,943) | 419,624,570 | (14,994,039) | (16,194,023) |
| CDI<br> (Interbank Deposit Rates) | 89,194,925 | (7,806,202) | (7,369,892) | 321,402,883 | (4,171,481) | (12,350,345) |
| Fixed<br> Interest Rate - Real | 97,036,548 | (7,737,041) | (7,443,286) | 48,874,762 | (6,760,576) | (2,408,062) |
| Indexed<br> to Price and Interest Rates | - | - | - | 22,827,336 | (28,407) | (1,142,945) |
| Foreign<br> Currency | 225,114,238 | (8,250,389) | (5,186,765) | 887,129 | (4,006,955) | (54,849) |
| Others | - | - | - | 25,632,461 | (26,621) | (237,822) |
| Options | 1,182,186,279 | (682,820) | (483,164) | 1,130,172,099 | (610,691) | (653,704) |
| Purchased Position | 589,813,693 | 964,916 | 1,513,014 | 564,829,758 | 1,225,532 | 1,548,530 |
| Call<br> Option - Foreign Currency | 79,673,871 | 150,893 | 580,941 | 9,898,179 | 271,464 | 382,237 |
| Put<br> Option - Foreign Currency | 510,139,822 | 814,023 | 932,073 | 4,094,316 | 140,280 | 187,123 |
| Call<br> Option - Other | - | - | - | 31,248,540 | 444,648 | 673,616 |
| Interbank<br> Market | - | - | - | 28,499,055 | 444,446 | 673,202 |
| Others<br> (2) | - | - | - | 2,749,485 | 203 | 414 |
| Put<br> Option - Other | - | - | - | 519,588,723 | 369,140 | 305,553 |
| Interbank<br> Market | - | - | - | 519,588,723 | 369,140 | 305,553 |
| Sold Position | 592,372,586 | (1,647,736) | (1,996,178) | 565,342,341 | (1,836,224) | (2,202,234) |
| Call<br> Option - Foreign Currency | 75,322,602 | (769,209) | (941,403) | 4,111,016 | (170,553) | (152,348) |
| Put<br> Option - Foreign Currency | 517,049,985 | (878,527) | (1,054,774) | 4,017,161 | (348,715) | (287,825) |
| Call<br> Option - Other | - | - | - | 33,383,234 | (719,460) | (872,335) |
| Interbank<br> Market | - | - | - | 31,730,928 | (713,773) | (858,586) |
| Others<br> (2) | - | - | - | 1,652,305 | (5,687) | (13,749) |
| Put<br> Option - Other | - | - | - | 523,830,930 | (597,497) | (889,726) |
| Interbank<br> Market | - | - | - | 523,830,930 | (597,497) | (889,726) |
| Futures Contracts | 421,621,524 | - | - | 287,984,278 | - | - |
| Purchased Position | 238,440,368 | - | - | 148,237,279 | - | - |
| Exchange<br> Coupon (DDI) | - | - | - | 85,931,389 | - | - |
| Interest<br> Rates (DI1 and DIA) | - | - | - | 28,491,764 | - | - |
| Foreign<br> Currency | 238,440,368 | - | - | 33,797,350 | - | - |
| Indexes<br> (3) | - | - | - | 16,776 | - | - |
| Sold Position | 183,181,156 | - | - | 139,746,999 | - | - |
| Exchange<br> Coupon (DDI) | - | - | - | 60,606,204 | - | - |
| Interest Rates (DI1 and DIA) | - | - | - | 53,267,620 | - | - |
| --- | --- | --- | --- | --- | --- | --- |
| Foreign<br> Currency | 183,181,156 | - | - | 25,678,296 | - | - |
| Indexes<br> (3) | - | - | - | 194,879 | - | - |
| Forward Contracts and Others | 334,867,643 | (2,150,766) | 4,804,641 | 174,435,332 | 2,836,843 | (866,701) |
| Purchased Commitment | 175,383,845 | 2,379,854 | 19,683,321 | 96,509,221 | 5,345,415 | 12,892,381 |
| Currencies | 158,525,039 | 926,900 | 16,863,314 | 83,752,185 | 2,738,485 | 10,306,159 |
| Others | 16,858,805 | 1,452,954 | 2,820,007 | 12,757,036 | 2,606,930 | 2,586,222 |
| Sell Commitment | 159,483,798 | (4,530,621) | (14,878,680) | 77,926,111 | (2,508,572) | (13,759,082) |
| Currencies | 149,481,852 | (3,861,080) | (13,338,519) | 71,611,500 | (1,141,826) | (12,586,625) |
| Others | 10,001,946 | (669,541) | (1,540,161) | 6,314,611 | (1,366,746) | (1,172,457) |
| Consolidated | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| 03/31/2022 | 12/31/2021 | |||||
| Trading | Notional (1) | Cost | Fair Value | Notional (1) | Cost | Fair Value |
| Swap | 863,882,800 | (10,616,032) | (3,759,241) | 841,676,369 | (1,804,602) | (897,350) |
| Assets | 426,633,384 | 14,171,961 | 8,121,218 | 422,001,798 | 13,189,437 | 7,641,355 |
| CDI<br> (Interbank Deposit Rates) | 91,837,687 | 5,480,150 | 4,514,288 | 66,837,268 | 318,541 | (778,177) |
| Fixed<br> Interest Rate - Real | 102,767,702 | 4,479,755 | 3,423,309 | 235,605,371 | 9,269,271 | 6,412,471 |
| Indexed<br> to Price and Interest Rates | - | - | - | 2,089,110 | 799,550 | (234,488) |
| Foreign<br> Currency | 232,027,995 | 4,212,055 | 183,622 | 91,837,446 | 2,775,313 | 2,003,728 |
| Others | - | - | - | 25,632,603 | 26,763 | 237,822 |
| Liabilities | 437,249,416 | (24,787,993) | (11,880,459) | 419,674,570 | (14,994,039) | (8,538,705) |
| CDI<br> (Interbank Deposit Rates) | 94,167,631 | (7,810,095) | (3,816,814) | 321,402,883 | (4,171,481) | (12,327,484) |
| Fixed<br> Interest Rate - Real | 106,936,891 | (8,648,945) | (6,273,772) | 48,874,762 | (6,760,576) | 2,467,425 |
| Indexed<br> to Price and Interest Rates | - | - | - | 22,827,336 | (28,407) | (728,677) |
| Foreign<br> Currency | 236,144,893 | (8,328,953) | (1,789,873) | 937,129 | (4,006,955) | 2,287,852 |
| Others | - | - | - | 25,632,461 | (26,621) | (237,822) |
| Options | 1,182,186,279 | (682,820) | (810,645) | 1,130,172,099 | (610,691) | (885,703) |
| Purchased Position | 589,813,693 | 964,916 | 1,262,809 | 564,829,758 | 1,225,532 | 1,370,541 |
| Call<br> Option - Foreign Currency | 79,673,871 | 150,893 | 599,256 | 9,898,179 | 271,464 | 382,237 |
| Put<br> Option - Foreign Currency | 510,139,822 | 814,023 | 663,552 | 4,094,316 | 140,280 | 187,123 |
| Call<br> Option - Other | - | - | - | 31,248,540 | 444,648 | 495,628 |
| Interbank<br> Market | - | - | - | 28,499,055 | 444,446 | 495,214 |
| Others<br> (2) | - | - | - | 2,749,485 | 203 | 414 |
| Put<br> Option - Other | - | - | - | 519,588,723 | 369,140 | 305,553 |
| Interbank<br> Market | - | - | - | 519,588,723 | 369,140 | 305,553 |
| Sold Position | 592,372,586 | (1,647,736) | (2,073,454) | 565,342,341 | (1,836,224) | (2,256,244) |
| Call<br> Option - Foreign Currency | 75,322,602 | (769,209) | (941,403) | 4,111,016 | (170,553) | (152,348) |
| Put<br> Option - Foreign Currency | 517,049,985 | (878,527) | (1,132,051) | 4,017,161 | (348,715) | (287,825) |
| Call<br> Option - Other | - | - | - | 33,383,234 | (719,460) | (872,335) |
| Interbank<br> Market | - | - | - | 31,730,928 | (713,773) | (858,586) |
| Others<br> (2) | - | - | - | 1,652,305 | (5,687) | (13,749) |
| Put<br> Option - Other | - | - | - | 523,830,930 | (597,497) | (943,736) |
| Interbank<br> Market | - | - | - | 523,830,930 | (597,497) | (943,736) |
| Futures Contracts | 421,621,524 | - | - | 287,984,278 | - | - |
| Purchased Position | 238,440,368 | - | - | 148,237,279 | - | - |
| Exchange<br> Coupon (DDI) | - | - | - | 85,931,389 | - | - |
| Interest<br> Rates (DI1 and DIA) | - | - | - | 28,491,764 | - | - |
| Foreign<br> Currency | 238,440,368 | - | - | 33,797,350 | - | - |
| Indexes<br> (3) | - | - | - | 16,776 | - | - |
| Sold Position | 183,181,156 | - | - | 139,746,999 | - | - |
| Exchange<br> Coupon (DDI) | - | - | - | 60,606,204 | - | - |
| Interest<br> Rates (DI1 and DIA) | - | - | - | 53,267,620 | - | - |
| Foreign<br> Currency | 183,181,156 | - | - | 25,678,296 | - | - |
| Indexes<br> (3) | - | - | - | 194,879 | - | - |
| Forward Contracts and Others | 334,867,643 | (1,345,871) | 4,721,791 | 174,435,332 | 2,836,843 | (1,774,454) |
| Purchased Commitment | 175,383,845 | 2,812,819 | 20,537,239 | 96,509,221 | 5,345,415 | 12,077,828 |
| --- | --- | --- | --- | --- | --- | --- |
| Currencies | 158,525,039 | 1,329,348 | 17,221,793 | 83,752,185 | 2,738,485 | 9,491,606 |
| Others | 16,858,805 | 1,483,471 | 3,315,446 | 12,757,036 | 2,606,930 | 2,586,222 |
| Sell Commitment | 159,483,798 | (4,158,690) | (15,815,448) | 77,926,111 | (2,508,572) | (13,852,282) |
| Currencies | 149,481,852 | (3,458,632) | (13,696,998) | 71,611,500 | (1,141,826) | (12,679,825) |
| Others | 10,001,946 | (700,058) | (2,118,450) | 6,314,611 | (1,366,746) | (1,172,457) |
(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) DerivativeFinancial Instruments by Counterparty, Opening by Maturity and Trading Market
| Bank | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Notional | ||||||||||
| By Counterparty | By Maturity | Trading Market | ||||||||
| 03/31/2022 | 12/31/2021 | 03/31/2022 | 03/31/2022 | |||||||
| Related | Financial | Up to | From 3 to | Over | Over the Counter (3) | |||||
| Customers | Parties | Institutions (1) | Total | Total | 3 Months | 12 Months | 12 Months | Exchange (2) | ||
| Swap | 384,169,215 | - | 16,530,241 | 400,699,456 | 418,137,448 | 29,949,627 | 110,975,100 | 259,774,729 | 92,396,562 | 308,302,893 |
| Options | 1,182,186,280 | - | - | 1,182,186,280 | 1,130,172,099 | 86,929,469 | 462,288,032 | 632,968,779 | 1,128,293,185 | 53,893,094 |
| Futures<br> Contracts | 421,621,524 | - | - | 421,621,524 | 287,984,278 | 76,892,621 | 74,074,236 | 270,654,667 | 421,621,524 | - |
| Forward<br> Contracts and Others | 165,116,866 | - | 169,750,777 | 334,867,643 | 174,435,332 | 77,533,488 | 73,564,617 | 183,769,539 | 7,505,970 | 327,361,673 |
| Consolidated | ||||||||||
| Notional | ||||||||||
| By Counterparty | By Maturity | Trading Market | ||||||||
| 03/31/2022 | 12/31/2021 | 03/31/2022 | 03/31/2022 | |||||||
| Related | Financial | Up to | From 3 to | Over | Over the Counter (3) | |||||
| Customers | Parties | Institutions (1) | Total | Total | 3 Months | 12 Months | 12 Months | Exchange (2) | ||
| Swap | 384,169,215 | - | 42,464,169 | 426,633,384 | 422,001,798 | 29,949,627 | 110,975,100 | 285,708,658 | 92,396,562 | 334,236,822 |
| Options | 1,182,186,280 | - | - | 1,182,186,280 | 1,130,172,099 | 86,929,469 | 462,288,032 | 632,968,779 | 1,128,293,185 | 53,893,094 |
| Futures<br> Contracts | 421,621,524 | - | - | 421,621,524 | 287,984,278 | 76,892,621 | 74,074,236 | 270,654,667 | 421,621,524 | - |
| Forward<br> Contracts and Others | 165,116,866 | - | 169,750,777 | 334,867,643 | 174,435,332 | 77,533,488 | 73,564,617 | 183,769,539 | 7,505,970 | 327,361,673 |
(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 March 31, 2022 and December 31, 2021, no results referring to the ineffective portion were recorded.
| Bank | ||||||||
|---|---|---|---|---|---|---|---|---|
| 03/31/2022 | 12/31/2021 | |||||||
| 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 | 406,361 | 431,959 | 401,916 | 394,619 | 84,937 | 82,563 | 559,396 | 551,710 |
| Credit Operations Hedge | 406,361 | 431,959 | 401,916 | 394,619 | 84,937 | 82,563 | 559,396 | 551,710 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Futures Contracts | 5,801,700 | 4,804,548 | 5,859,273 | 4,812,410 | 46,351,128 | 41,430,054 | 45,202,938 | 41,437,967 |
| Credit<br> Operations Hedge | - | - | - | - | 2,738,830 | 2,836,150 | 2,521,938 | 2,850,589 |
| Securities<br> Hedge | 5,801,700 | 4,804,548 | 5,859,273 | 4,812,410 | 43,612,299 | 38,593,904 | 42,680,999 | 38,587,378 |
| Cash Flow Hedge | ||||||||
| Futures Contracts | 36,342,321 | 41,802,401 | 35,012,976 | 41,802,040 | 119,760,298 | 110,316,582 | 128,673,067 | 110,932,644 |
| Credit<br> Operations Hedge | 3,507,452 | 3,506,126 | 3,472,723 | 3,506,126 | 30,167,942 | 27,965,018 | 28,659,545 | 28,542,862 |
| Securities<br> Hedge | 22,536,083 | 27,226,914 | 20,471,253 | 27,226,914 | 79,293,570 | 71,320,756 | 89,837,000 | 71,320,781 |
| Funding<br> Hedge | 10,298,786 | 11,069,361 | 11,069,000 | 11,069,000 | 10,298,786 | 11,030,809 | 10,176,522 | 11,069,000 |
| Consolidated | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 03/31/2022 | 12/31/2021 | |||||||
| 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 | 406,361 | 431,959 | 401,916 | 394,619 | 84,937 | 82,563 | 559,396 | 551,710 |
| Credit<br> Operations Hedge | 406,361 | 431,959 | 401,916 | 394,619 | 84,937 | 82,563 | 559,396 | 551,710 |
| Securities<br> Hedge | - | - | - | - | - | - | - | - |
| Futures Contracts | - | - | - | - | 46,351,128 | 41,430,054 | 45,202,938 | 41,437,967 |
| Credit<br> Operations Hedge | - | - | - | - | 2,738,830 | 2,836,150 | 2,521,938 | 2,850,589 |
| Securities<br> Hedge | 5,801,700 | 4,804,548 | 5,859,273 | 4,812,410 | 43,612,299 | 38,593,904 | 42,680,999 | 38,587,378 |
| Cash Flow Hedge | ||||||||
| Swap Contracts | - | - | - | - | 4,799,882 | 3,922,255 | 5,904,442 | 3,864,350 |
| Securities<br> Hedge | - | - | - | - | - | - | - | - |
| Funding<br> Hedge | - | - | - | - | 4,799,882 | 3,922,255 | 5,904,442 | 3,864,350 |
| Futures Contracts | 36,342,321 | 41,802,401 | 35,012,976 | 41,802,040 | 119,760,298 | 110,316,582 | 128,673,067 | 110,932,644 |
| Credit<br> Operations Hedge | 3,507,452 | 3,506,126 | 3,472,723 | 3,506,126 | 30,167,942 | 27,965,018 | 28,659,545 | 28,542,862 |
| Securities<br> Hedge | 22,536,083 | 27,226,914 | 20,471,253 | 27,226,914 | 79,293,570 | 71,320,756 | 89,837,000 | 71,320,781 |
| Funding<br> Hedge | 10,298,786 | 11,069,361 | 11,069,000 | 11,069,000 | 10,298,786 | 11,030,809 | 10,176,522 | 11,069,000 |
(*) 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.
| Bank | Consolidated | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | |||||||
| 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 | 131,540 | - | 263,079 | 394,619 | 84,767 | 131,540 | - | 263,079 | 394,619 | 84,767 |
| Credit Operations<br> Hedge | 131,540 | - | 263,079 | 394,619 | 84,767 | 131,540 | - | 263,079 | 394,619 | 84,767 |
| Futures Contracts | 198,553 | - | 4,613,857 | 4,812,410 | 41,437,967 | 198,553 | - | 4,613,857 | 4,812,410 | 41,437,967 |
| Securities<br> Hedge | 198,553 | - | 4,613,857 | 4,812,410 | 2,850,589 | 198,553 | - | 4,613,857 | 4,812,410 | 2,850,589 |
| Funding<br> Hedge | - | - | - | - | 38,587,378 | - | - | - | - | 38,587,378 |
| Cash Flow Hedge | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Swap Contracts | - | - | - | - | 3,728,462 | - | - | - | - | - |
| Funding<br> Hedge | - | - | - | - | 3,728,462 | - | - | - | - | - |
| Futures Contracts | 30,733,040 | - | 11,069,000 | 41,802,040 | 110,932,644 | 3,506,126 | - | 11,069,000 | 41,802,040 | 110,932,644 |
| Credit Operations<br> Hedge (2) (3) | 3,506,126 | - | - | 3,506,126 | 28,542,862 | 3,506,126 | - | - | 3,506,126 | 28,542,862 |
| Securities<br> Hedge | 27,226,914 | - | - | 27,226,914 | 71,320,781 | 27,226,914 | - | - | 27,226,914 | 71,320,781 |
| Funding<br> Hedge | - | - | 11,069,000 | 11,069,000 | 11,069,000 | - | - | 11,069,000 | 11,069,000 | 11,069,000 |
In the Bank and Consolidated, the effect of mark-to-market of swap contracts and future assets corresponds to a credit in the amount of R$ 112,257 (12/31/2021 - R$193,793) and is recorded in equity, net of tax effects.
V) Information onCredit 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 ReturnSwaps - 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.
CreditDefault 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 | ||||
|---|---|---|---|---|
| Valor Nominal | ||||
| 03/31/2022 | 12/31/2021 | |||
| Retained Risk - Total Rate of Return Swap | Transferred Risk - Credit Swap | Retained Risk - Total Rate of Return Swap | Transferred Risk - Credit Swap | |
| Credit<br> Swaps | 3,382,717 | - | 3,984,392 | - |
| Total | 3,382,717 | - | 3,984,392 | - |
| 03/31/2022 | 12/31/2021 | |||
| Maximum Potential for Future Payments - Gross | Over 12 Months | Total | Over 12 Months | Total |
| Per Instrument: CDS | 3,382,717 | 3,382,717 | 3,984,392 | 3,984,392 |
| Per Risk<br> Classification: Below<br> Investment Grade | 3,382,717 | 3,382,717 | 3,984,392 | 3,984,392 |
| Per Reference Entity: Brazilian<br> Government | 3,382,717 | 3,382,717 | 3,984,392 | 3,984,392 |
VI) Derivative Financial Instruments - Margin Given inGuarantee
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 | |||
|---|---|---|---|---|
| 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | |
| Financial<br> Literature of the Treasury - LFT | 9,174,427 | 28,481,618 | 11,797,300 | 31,305,549 |
| National<br> Treasury Bills - LTN | 1,503,483 | 1,015,470 | 3,996,060 | 3,751,223 |
| National Treasury Notes - NTN | 23,143,166 | 4,551,507 | 27,229,059 | 7,725,538 |
| Total | 33,821,076 | 34,048,594 | 43,022,418 | 42,782,310 |
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 | |||
|---|---|---|---|---|
| 3/31/2022 | 12/31/2021 | 3/31/2022 | 12/31/2021 | |
| Lending Operations | 312,834,674 | 317,359,419 | 378,225,883 | 383,479,674 |
| Loans and<br> Discounted Titles | 206,943,561 | 209,544,801 | 209,420,639 | 211,026,403 |
| Financing | 37,212,868 | 39,635,785 | 100,126,999 | 104,274,438 |
| Rural and<br> Agroindustrial - Financing | 13,348,970 | 13,409,499 | 13,348,970 | 13,409,499 |
| Real<br> Estate Financing | 55,329,275 | 54,769,334 | 55,329,275 | 54,769,334 |
| Leasing Operations | - **** | - **** | 2,610,362 | 2,695,952 |
| Advances on Foreign Exchange Contracts (1) | 7,037,500 | 6,380,642 | 7,037,500 | 6,380,642 |
| Other Receivables (2) | 64,071,566 | 66,841,237 | 67,331,027 | 70,101,593 |
| Credits<br> for Avals and Sureties Honored | 153,566 | 169,942 | 390,807 | 471,385 |
| Income<br> Receivable from Advances Granted - Foreign Exchange Portfolio | 100,207 | 131,244 | 100,207 | 131,244 |
| Other<br> Receivables – Other | 63,817,793 | 66,540,051 | 66,840,013 | 69,498,964 |
| Total | 383,943,740 | 390,581,298 | 455,204,772 | 462,657,861 |
(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) WithSubstantial Transfer of Risks and Benefits
In the Bank and Consolidated, during the period ended March 31, 2022, credit assignment operations without recourse were carried out in the amount of R$2,766,198 (12/31/2021 - R$13,255,965). These amounts refer to operations, substantially, of loans and discounted securities.
(ii) WithSubstantial Retention of Risks and Benefits
In December 2011, the Bank assigned credits with recourse referring to real estate financing in the amount of R$688,821, whose maturities will occur until October 2041. On March 31, 2022, the present value of the assigned operations is R$38,436 (12/31/2021 – R$ 40,790).
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) LoanPortfolio by Maturity
| Bank | Consolidated | |||
|---|---|---|---|---|
| 3/31/2022 | 12/31/2021 | 3/31/2022 | 12/31/2021 | |
| Overdue | 10,020,798 | 8,604,538 | 11,397,211 | 9,851,990 |
| Due to: | ||||
| Up to 3<br> Months | 95,032,317 | 95,540,587 | 104,565,086 | 105,690,188 |
| From 3 to<br> 12 Months | 89,262,538 | 94,386,260 | 113,437,304 | 118,277,838 |
| Over 12<br> Months | 189,628,087 | 192,049,913 | 225,805,171 | 228,837,845 |
| Total | 383,943,740 | 390,581,298 | 455,204,772 | 462,657,861 |
c) Loan Portfolio by Business Sector
| Bank | Consolidated | |||
|---|---|---|---|---|
| 3/31/2022 | 12/31/2021 | 3/31/2022 | 12/31/2021 | |
| Private Sector | 382,953,113 | 389,584,358 | 454,213,326 | 461,660,021 |
| Industry | 63,539,874 | 66,175,356 | 64,753,586 | 67,326,360 |
| Commercial | 47,089,375 | 46,914,290 | 52,453,136 | 52,116,991 |
| Financial<br> Institutions | 1,766,615 | 1,409,948 | 1,086,411 | 1,139,660 |
| Services<br> and Other (1) | 58,547,224 | 64,288,268 | 65,023,560 | 70,874,163 |
| Individuals | 208,051,721 | 206,057,453 | 266,857,347 | 265,381,454 |
| Credit<br> Cards | 45,382,983 | 45,804,859 | 45,382,983 | 45,804,859 |
| Mortgage<br> Loans | 53,521,936 | 52,992,797 | 53,521,936 | 52,992,797 |
| Payroll<br> Loans | 52,893,851 | 52,303,502 | 52,893,851 | 52,303,502 |
| Financing<br> and Vehicles Lease | 1,471,388 | 1,703,858 | 55,865,488 | 56,514,921 |
| Others<br> (2) | 54,781,563 | 53,252,437 | 59,193,089 | 57,765,375 |
| Agricultural | 3,958,304 | 4,739,043 | 4,039,286 | 4,821,393 |
| Public Sector | 990,627 | 996,940 | 991,446 | 997,840 |
| State | 642,466 | 331,735 | 642,466 | 331,735 |
| Municipal | 348,161 | 665,205 | 348,980 | 666,105 |
| Total | 383,943,740 | 390,581,298 | 455,204,772 | 462,657,861 |
(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 andRespective Allowance for Loan Losses by Risk Level
| Bank | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 03/31/2021 | 12/31/2021 | ||||||||||||
| % | 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% | 169,829,127 | - | 169,829,127 | - | - | - | 180,139,073 | - | 180,139,073 | - | - | - |
| A | 0.5% | 103,388,797 | - | 103,388,797 | 516,944 | 3 | 516,947 | 104,992,054 | - | 104,992,054 | 524,960 | 2 | 524,962 |
| B | 1.0% | 35,447,633 | 2,661,460 | 38,109,093 | 381,091 | 184 | 381,275 | 35,871,587 | 2,253,434 | 38,125,021 | 381,250 | 167 | 381,417 |
| C | 3.0% | 29,160,517 | 3,104,197 | 32,264,714 | 967,941 | 1,926 | 969,867 | 29,029,189 | 2,798,938 | 31,828,127 | 954,844 | 1,899 | 956,743 |
| D | 10.0% | 12,252,724 | 3,821,677 | 16,074,401 | 1,607,440 | 1,138,555 | 2,745,995 | 10,439,757 | 3,063,622 | 13,503,379 | 1,350,338 | 2,206,475 | 3,556,813 |
| E | 30.0% | 2,616,403 | 2,631,144 | 5,247,547 | 1,574,264 | 891,749 | 2,466,013 | 2,346,953 | 2,301,009 | 4,647,962 | 1,394,389 | 757,194 | 2,151,583 |
| F | 50.0% | 1,976,066 | 2,039,125 | 4,015,191 | 2,007,596 | 656,065 | 2,663,661 | 1,828,300 | 1,831,787 | 3,660,087 | 1,830,043 | 582,385 | 2,412,428 |
| G | 70.0% | 1,980,316 | 1,726,265 | 3,706,581 | 2,594,606 | 711,956 | 3,306,562 | 1,865,631 | 1,570,929 | 3,436,560 | 2,405,590 | 643,556 | 3,049,146 |
| H | 100.0% | 3,745,016 | 7,524,668 | 11,269,684 | 11,269,684 | - | 11,269,684 | 3,375,689 | 6,964,787 | 10,340,476 | 10,340,476 | - | 10,340,476 |
| Total | 360,396,599 | 23,508,536 | 383,905,135 | 20,919,566 | 3,400,438 | 24,320,004 | 369,888,233 | 20,784,506 | 390,672,739 | 19,181,889 | 4,191,678 | 23,373,567 | |
| Consolidated | |||||||||||||
| 03/31/2021 | 12/31/2021 | ||||||||||||
| 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% | 188,420,088 | - | 188,420,088 | - | - | - | 199,635,521 | - | 199,635,521 | - | - | - |
| A | 0.5% | 136,432,285 | 1,420 | 136,433,705 | 682,169 | 3 | 682,172 | 138,688,667 | 2,090 | 138,690,757 | 693,454 | 2 | 693,456 |
| B | 1.0% | 42,946,397 | 4,523,571 | 47,469,968 | 474,700 | 184 | 474,884 | 44,189,990 | 3,890,801 | 48,080,791 | 480,808 | 167 | 480,975 |
| C | 3.0% | 31,815,524 | 4,850,982 | 36,666,506 | 1,099,995 | 1,926 | 1,101,921 | 31,313,221 | 4,196,290 | 35,509,511 | 1,065,285 | 1,899 | 1,067,184 |
| D | 10.0% | 12,890,124 | 4,760,380 | 17,650,504 | 1,765,050 | 1,138,556 | 2,903,606 | 11,009,408 | 3,847,376 | 14,856,784 | 1,485,678 | 2,245,960 | 3,731,638 |
| E | 30.0% | 2,920,674 | 3,292,338 | 6,213,012 | 1,863,904 | 1,036,943 | 2,900,847 | 2,633,675 | 2,896,095 | 5,529,770 | 1,658,931 | 887,864 | 2,546,795 |
| F | 50.0% | 2,099,083 | 2,535,637 | 4,634,720 | 2,317,360 | 776,085 | 3,093,445 | 1,936,705 | 2,275,793 | 4,212,498 | 2,106,249 | 690,148 | 2,796,397 |
| G | 70.0% | 2,148,510 | 2,107,380 | 4,255,890 | 2,979,123 | 846,742 | 3,825,865 | 2,031,334 | 1,916,832 | 3,948,166 | 2,763,716 | 765,637 | 3,529,353 |
| H | 100.0% | 4,089,756 | 9,332,016 | 13,421,772 | 13,421,772 | - | 13,421,772 | 3,690,054 | 8,595,444 | 12,285,498 | 12,285,498 | - | 12,285,498 |
| Total | 423,762,441 | 31,403,724 | 455,166,165 | 24,604,073 | 3,800,439 | 28,404,512 | 435,128,575 | 27,620,721 | 462,749,296 | 22,539,619 | 4,591,677 | 27,131,296 |
(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 Consolidated, the total credit portfolio includes the amount of R$38,607 (12/31/2021- R$91,435), referring to the adjustment to market value of the credit operations that are subject to 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 risk levels note.
EmergencyEmployment 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 | ||||
|---|---|---|---|---|---|
| 03/31/2022 | 03/31/2022 | ||||
| Risk Level | % MinimunAllowance Required | Assets | AllowanceRequired | Assets | AllowanceRequired |
| AA | 0.0% | 8,002 | - | 8,002 | - |
| A | 0.5% | 307,080 | 230 | 307,080 | 230 |
| B | 1.0% | 226,415 | 340 | 226,415 | 340 |
| C | 3.0% | 231,384 | 1,041 | 231,384 | 1,041 |
| D | 10.0% | 165,892 | 2,488 | 165,892 | 2,488 |
| E | 30.0% | 12,543 | 564 | 12,543 | 564 |
| F | 50.0% | 13,101 | 983 | 13,101 | 983 |
| G | 70.0% | 10,555 | 1,108 | 10,555 | 1,108 |
| H | 100.0% | 196,068 | 15,894 | 196,068 | 15,894 |
| Total | 1,171,040 | 22,649 | 1,171,040 | 22,649 | |
| Bank | Consolidated | ||||
| 12/31/2021 | 12/31/2021 | ||||
| Risk Level | % MinimunAllowance Required | Assets | AllowanceRequired | Assets | AllowanceRequired |
| AA | 0.0% | 9,132 | - | 9,132 | - |
| A | 0.5% | 401,095 | 301 | 401,095 | 301 |
| B | 1.0% | 276,818 | 415 | 276,818 | 415 |
| C | 3.0% | 285,783 | 1,286 | 285,783 | 1,286 |
| D | 10.0% | 165,099 | 2,476 | 165,099 | 2,476 |
| E | 30.0% | 15,153 | 682 | 15,153 | 682 |
| F | 50.0% | 19,682 | 1,476 | 19,682 | 1,476 |
| G | 70.0% | 15,714 | 1,650 | 15,714 | 1,650 |
| H | 100.0% | 120,077 | 18,011 | 120,077 | 18,011 |
| Total | 1,308,553 | 26,297 | 1,308,553 | 26,297 |
e) Changesin Allowance for Loan Losses
| Bank | Consolidated | |||
|---|---|---|---|---|
| 01/01 to 03/31/2022 | 01/01 to 03/31/2021 | 01/01 to 03/31/2022 | 01/01 to 03/31/2021 | |
| Opening Balance | 23,373,568 | 21,835,444 | 27,131,296 | 25,067,489 |
| Allowances<br> Recognized | 3,908,132 | 2,835,477 | 4,929,961 | 3,376,842 |
| Write-offs | (2,961,696) | (2,291,546) | (3,656,745) | (2,715,907) |
| Closing Balance | 24,320,004 | 22,379,375 | 28,404,512 | 25,728,424 |
| Recoveries Credits (1) | 550,156 | 661,909 | 740,345 | 752,747 |
f) RenegotiatedCredits
| Bank | Consolidated | |||
|---|---|---|---|---|
| 3/31/2022 | 12/31/2021 | 3/31/2022 | 12/31/2021 | |
| Renegotiated<br> Credits | 23,341,973 | 20,005,822 | 27,567,481 | 23,634,268 |
| Allowance<br> for Loan Losses | (11,355,735) | (10,100,946) | (12,502,937) | (11,120,588) |
| Percentage<br> of Coverage on Renegotiated Credits | 48.6% | 50.5% | 45.4% | 47.1% |
g) LoanPortfolio Concentration
| Consolidated | |||||||
|---|---|---|---|---|---|---|---|
| 3/31/2022 | 12/31/2021 | ||||||
| Loan Portfolio and Credit Guarantees (1), Securities (2) and Derivatives Financial Instruments (3) | Risk | % | Risk | % | |||
| --- | --- | --- | --- | --- | --- | --- | --- |
| Largest<br> Debtor | 5,031,266 | 0.9% | 6,767,732 | 1.4% | |||
| 10<br> Largest | 35,749,510 | 6.3% | 40,864,829 | 7.5% | |||
| 20<br> Largest | 54,428,451 | 9.6% | 60,535,018 | 11.2% | |||
| 50<br> Largest | 86,340,728 | 15.2% | 93,411,357 | 17.6% | |||
| 100<br> Largest | 115,006,960 | 20.2% | 124,364,929 | 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
In 2022, due to better liquidity conditions observed in the market for electricity trading operations for certain maturities, management reclassified contracts maturing up to 2 years from level 3 to level 2 and revisited the accounting treatment in relation to contracts electricity trading, which no longer include the "principal" amount and, therefore, only the fair value and interest adjustments determined in these operations are recorded in equity accounts.
The financial statements as of December 31, 2021, presented for comparison purposes, already include the aforementioned adjustments.
a) Other Financial Assets
| Bank | ||
|---|---|---|
| 03/31/2022 | 12/31/2021 | |
| Total | Total | |
| Exchange<br> Portfolio | 48,736,834 | 64,192,929 |
| Trading<br> and Intermediation of Values | 2,184,656 | 5,625,242 |
| Interbank<br> Accounts | 86,668,903 | 87,981,008 |
| Credits<br> for Avals and Sureties Honored | 153,566 | 169,942 |
| Total | 137,743,959 | 157,969,121 |
| Consolidated | ||
| 03/31/2022 | 12/31/2021 | |
| Exchange<br> Portfolio | 48,736,834 | 64,192,929 |
| Trading<br> and Intermediation of Values | 2,633,585 | 6,723,764 |
| Interbank<br> Accounts | 87,029,622 | 88,376,555 |
| Credits<br> for Avals and Sureties Honored | 390,807 | 471,385 |
| Total | 138,790,848 | 159,764,633 |
10.
Tax Assets and Liabilities
a) TaxCredits
a.1) Natureand Origin of Recorded Deferred Tax Assets
| Origins | Bank | |||||
|---|---|---|---|---|---|---|
| Balances on | Balances on | |||||
| 03/31/2022 | 12/31/2021 | 12/31/2021 | Recognition (4) | Realization | 03/31/2022 | |
| Allowance<br> for Loan Losses | 31,632,889 | 32,151,455 | 14,468,155 | 1,786,385 | (2,019,740) | 14,234,800 |
| Reserve<br> for Legal and Administrative Proceedings - Civil | 4,406,062 | 4,323,509 | 1,945,580 | 194,913 | (157,765) | 1,982,728 |
| Reserve<br> for Tax Risks and Legal Obligations | 3,834,230 | 3,689,059 | 1,623,796 | 93,096 | (27,769) | 1,689,123 |
| Reserve<br> for Legal and Administrative Proceedings - Labor | 5,661,436 | 5,587,123 | 2,514,206 | 180,843 | (181,581) | 2,513,468 |
| Goodwill | 107,229 | 109,247 | 49,162 | - | (908) | 48,254 |
| Adjustment<br> to Fair Value of Trading Securities and Derivatives (1) | 8,850,198 | 8,081,267 | 1,562,878 | 1,017,537 | (835,044) | 1,745,371 |
| Adjustment<br> to Fair Value of Available-for-sale Securities and Cash Flow Hedge (1) | 8,972,250 | 8,727,582 | 2,124,709 | 273,401 | (213,837) | 2,184,273 |
| Accrual<br> for Pension Plan (2) | 1,507,628 | 1,769,948 | 796,476 | 26,139 | (144,182) | 678,433 |
| Profit<br> Sharing, Bonuses and Personnel Gratuities | 490,098 | 1,226,773 | 529,182 | 222,981 | (541,536) | 210,627 |
| Other<br> Temporary Provisions (3) | 7,132,839 | 6,935,676 | 3,022,850 | 98,556 | - | 3,121,406 |
| Total Tax Credits on Temporary Differences | 72,594,859 | 72,601,639 | 28,636,994 | 3,893,851 | (4,122,362) | 28,408,483 |
| Tax<br> Losses and Negative Social Contribution Bases | 10,287,126 | 10,144,740 | 4,536,556 | 75,074 | (27,272) | 4,584,358 |
| Balance of Recorded Deferred Tax Assets | 82,881,985 | 82,746,379 | 33,173,550 | 3,968,925 | (4,149,634) | 32,992,841 |
| Origins | Consolidated | |||||
| Balances on | Balances on | |||||
| 03/31/2022 | 12/31/2021 | 12/31/2021 | Recognition (4) | Realization | 03/31/2022 | |
| Allowance<br> for Loan Losses | 38,566,604 | 38,547,733 | 17,036,391 | 2,221,245 | (2,256,599) | 17,001,037 |
| Reserve<br> for Legal and Administrative Proceedings - Civil | 4,629,815 | 4,590,834 | 2,046,045 | 222,332 | (186,784) | 2,081,593 |
| Reserve<br> for Tax Risks and Legal Obligations | 6,236,510 | 6,028,067 | 2,537,729 | 113,485 | (35,419) | 2,615,794 |
| Reserve<br> for Legal and Administrative Proceedings - Labor | 6,008,521 | 5,972,720 | 2,655,871 | 186,012 | (187,176) | 2,654,706 |
| Goodwill | 107,229 | 109,248 | 49,162 | - | (908) | 48,254 |
| Adjustment<br> to Fair Value of Trading Securities and Derivatives (1) | 8,966,032 | 8,196,778 | 1,609,048 | 1,021,581 | (835,044) | 1,795,585 |
| Adjustment<br> to Fair Value of Available-for-sale Securities and Cash Flow Hedge (1) | 10,508,782 | 10,748,333 | 2,471,319 | 309,369 | (221,423) | 2,559,265 |
| Accrual<br> for Pension Plan (2) | 1,531,380 | 1,793,709 | 804,555 | 26,139 | (144,186) | 686,509 |
| Profit<br> Sharing, Bonuses and Personnel Gratuities | 580,390 | 1,432,705 | 599,768 | 236,861 | (590,371) | 246,259 |
| Other<br> Temporary Provisions (3) | 7,664,290 | 7,602,125 | 3,392,198 | 130,249 | (105,898) | 3,416,549 |
| Total Tax Credits on Temporary Differences | 84,799,553 | 85,022,252 | 33,202,086 | 4,467,273 | (4,563,808) | 33,105,551 |
| Tax<br> Losses and Negative Social Contribution Bases | 10,570,389 | 10,295,706 | 4,755,984 | 136,156 | (55,558) | 4,836,582 |
| Balance of Recorded Deferred Tax Assets | 95,369,942 | 95,317,958 | 37,958,070 | 4,603,429 | (4,619,366) | 37,942,133 |
(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.
On March 31, 2022, unactivated tax credits totaled R$136,967 (12/31/2021 – R$90,574) 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 Credits
| Bank | |||||
|---|---|---|---|---|---|
| 03/31/2022 | |||||
| Temporary Differences | Tax Loss – Carryforwards | Total | |||
| Year | IRPJ | CSLL | PIS/COFINS | Recorded | |
| 2022 | 3,437,776 | 2,784,266 | 88,387 | 1,381,776 | 7,692,205 |
| 2023 | 5,156,267 | 4,095,720 | 117,850 | 1,790,511 | 11,160,348 |
| 2024 | 4,260,733 | 3,432,139 | 117,850 | 1,336,997 | 9,147,719 |
| 2025 | 1,739,568 | 1,397,533 | 117,849 | - | 3,254,950 |
| 2026 | 519,354 | 400,289 | 29,462 | - | 949,105 |
| 2027 to<br> 2031 | 368,494 | 318,103 | - | - | 686,597 |
| From 2032 | 14,913 | 11,930 | - | 75,074 | 101,917 |
| Total | 15,497,105 | 12,439,980 | 471,398 | 4,584,358 | 32,992,841 |
| Consolidated | |||||
|---|---|---|---|---|---|
| 03/31/2022 | |||||
| Temporary Differences | Tax Loss - Carryforwards | Total | |||
| Year | IRPJ | CSLL | PIS/COFINS | Recorded | |
| 2022 | 4,093,095 | 3,143,450 | 94,303 | 1,497,891 | 8,828,739 |
| 2023 | 6,186,033 | 4,698,565 | 125,738 | 1,836,638 | 12,846,974 |
| 2024 | 4,967,601 | 3,864,622 | 125,738 | 1,379,092 | 10,337,053 |
| 2025 | 2,001,130 | 1,560,134 | 125,736 | 35,452 | 3,722,452 |
| 2026 | 783,249 | 559,080 | 31,434 | 4,732 | 1,378,495 |
| 2027 to<br> 2031 | 379,465 | 339,325 | - | 7,001 | 725,791 |
| From 2032 | 14,920 | 11,933 | - | 75,776 | 102,629 |
| Total | 18,425,493 | 14,177,109 | 502,949 | 4,836,582 | 37,942,133 |
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) PresentValue of Deferred Tax Assets
The present value of deferred tax assets recorded is R$31,813,309 (12/31/2021 - R$31,575,967) in the Bank and R$36,077,182 (12/31/2021 - R$36,110,693) in the Consolidated, calculated in accordance with the expected realization of temporary differences, tax loss carryforwards, negative bases for CSLL, Social Contribution 18% - MP 2,158/2001 and the average funding rate, projected for the corresponding periods.
b) OtherLiabilities - Tax and Social Security
| Bank | Consolidated | |||
|---|---|---|---|---|
| 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | |
| Deferred<br> Tax Liabilities | 2,477,606 | 1,542,382 | 3,169,880 | 2,115,133 |
| Provision<br> for Taxes and Contributions on Income | 210,864 | 174,588 | 866,904 | 1,339,495 |
| Taxes<br> Payable | 825,347 | 1,253,669 | 1,027,549 | 1,628,217 |
| Total | 3,513,816 | 2,970,639 | 5,064,334 | 5,082,845 |
b.1) Natureand Origin of Deferred Tax Liabilities
| Origins | Bank | |||||
|---|---|---|---|---|---|---|
| Balances on | Balances on | |||||
| 03/31/2022 | 12/31/2021 | 12/31/2021 | Recognition | Realization | 03/31/2022 | |
| Adjustment<br> to Fair Value of Trading Securities and Derivatives (1) | 3,268,038 | 638,141 | 155,353 | 4,176,232 | (3,535,990) | 795,595 |
| Adjustment<br> to Fair Value of Available-for-Sale Securities and Cash Flow Hedge (1) | 6,404,496 | 7,259,029 | 1,767,194 | 175,636 | (382,272) | 1,560,558 |
| Excess<br> Depreciation of Leased Assets | 21,368 | 21,438 | 5,360 | - | (17) | 5,343 |
| Others | 258,433 | 227,660 | 102,262 | 13,848 | - | 116,110 |
| Total | 9,952,335 | 8,146,268 | 2,030,169 | 4,365,716 | (3,918,279) | 2,477,606 |
| Origins | Consolidated | |||||
| Balances on | Balances on | |||||
| 03/31/2022 | 12/31/2021 | 12/31/2021 | Recognition | Realization | 03/31/2022 | |
| Adjustment<br> to Fair Value of Trading Securities and Derivatives (1) | 4,028,510 | 1,630,907 | 383,698 | 4,203,474 | (3,618,142) | 969,030 |
| Adjustment<br> to Fair Value of Available-for-Sale Securities and Cash Flow Hedge (1) | 6,937,241 | 7,646,179 | 1,788,454 | 248,858 | (386,476) | 1,650,836 |
| Excess<br> Depreciation of Leased Assets | 1,337,222 | 1,343,391 | 335,784 | 8,919 | (10,477) | 334,226 |
| Others | 382,589 | 476,538 | 200,541 | 22,364 | (7,116) | 215,789 |
| Total | 12,685,562 | 11,097,015 | 2,708,477 | 4,483,615 | (4,022,211) | 3,169,881 |
(1) Includes IRPJ, CSLL, PIS and Cofins
b.2)Expected Realization of Deferred Tax Liabilities
| Bank | ||||
|---|---|---|---|---|
| 03/31/2022 | ||||
| Temporary Differences | Total | |||
| Year | IRPJ | CSLL | PIS/COFINS | Recorded |
| 2022 | 227,647 | 181,036 | 43,140 | 451,823 |
| 2023 | 303,530 | 241,381 | 57,519 | 602,430 |
| 2024 | 303,530 | 241,381 | 57,520 | 602,431 |
| 2025 | 302,194 | 241,381 | 57,520 | 601,095 |
| 2026 | 80,283 | 64,208 | 14,380 | 158,871 |
| 2027 to<br> 2031 | 32,304 | 25,750 | - | 58,054 |
| After<br> 2032 | 1,615 | 1,287 | - | 2,902 |
| Total | 1,251,103 | 996,424 | 230,079 | 2,477,606 |
| Consolidated | ||||
| 03/31/2022 | ||||
| Temporary Differences | Total | |||
| Year | IRPJ | CSLL | PIS/COFINS | Recorded |
| 2022 | 410,756 | 205,908 | 49,962 | 666,626 |
| 2023 | 501,634 | 274,501 | 66,617 | 842,752 |
| 2024 | 381,667 | 274,501 | 66,617 | 722,785 |
| 2025 | 356,879 | 259,649 | 62,183 | 678,711 |
| 2026 | 106,533 | 68,087 | 15,176 | 189,796 |
| 2027 to<br> 2031 | 38,021 | 28,021 | - | 66,042 |
| After<br> 2032 | 1,804 | 1,365 | - | 3,169 |
| Total | 1,797,294 | 1,112,032 | 260,555 | 3,169,881 |
c) IncomeTax and Social Contribution
| Bank | ||
|---|---|---|
| 01/01 to<br><br>03/31/2022 | 01/01 to 03/31/2021 | |
| Income Before Taxes on Income and Profit Sharing | 5,328,552 | 3,417,725 |
| Profit<br> Sharing (1) | (531,618) | (429,095) |
| Income Before Taxes | 4,796,934 | 2,988,630 |
| Total Income and Social Contribution Tax at the Rates of 25% and 20%, Respectively (3) | (2,158,620) | (1,344,883) |
| Equity in<br> Subsidiaries (2) | 478,045 | 418,149 |
| Nondeductible<br> Expenses, Net of Non-Taxable Income | 212,286 | (456,486) |
| Exchange<br> Variation - Foreign Branches | - | 836,735 |
| Income<br> and Social Contribution Taxes on Temporary Differences and Tax Losses from<br> Previous Exercises | 56,959 | 274,082 |
| Interest<br> on Capital | 532,165 | - |
| Other<br> Adjustments, Including Profits Provided Abroad | (393) | 260,349 |
| Income and Social Contribution Taxes | (879,558) | (12,054) |
| Current Taxes | (75,931) | (180,905) |
| Income<br> tax and social contribution for the year | (75,931) | (180,905) |
| Deferred Taxes | (776,355) | 393,239 |
| Constitution<br> / realization in the period on temporary additions and exclusions - Result | (776,355) | 393,239 |
| Use of opening balances of: | (27,272) | (224,388) |
| Negative<br> social contribution base | (5,989) | (94,699) |
| Tax loss | (21,283) | (129,689) |
| Total deferred taxes | (803,627) | 168,851 |
| Income tax and social contribution | (879,558) | (12,054) |
| Consolidated | ||
| --- | --- | --- |
| 01/01 to<br><br>03/31/2022 | 01/01 to 03/31/2021 | |
| Income Before Taxes on Income and Profit Sharing | 5,997,452 | 3,933,791 |
| Profit<br> Sharing (1) | (475,629) | (471,886) |
| Unrealized<br> Income | (176) | 217,493 |
| Income Before Taxes | 5,521,647 | 3,679,397 |
| Total Income and Social Contribution Tax at the Rates of 25% and 20%, Respectively (3) | (2,484,741) | (1,655,729) |
| Equity in<br> Subsidiaries (2) | 4,622 | 3,443 |
| Nondeductible<br> Expenses, Net of Non-Taxable Income | 225,076 | (457,029) |
| Exchange<br> Variation – Foreign Branches | - | 836,735 |
| Income<br> and Social Contribution Taxes on Temporary Differences and Tax Losses from<br> Previous Exercises | 31,973 | 276,034 |
| Interest<br> on Capital | 542,166 | 5,490 |
| Effects<br> of Change in Rate of CSLL (3) | 104,227 | 108,091 |
| --- | --- | --- |
| Other<br> Adjustments, Including Profits Provided Abroad | 37,266 | 262,582 |
| Income and Social Contribution Taxes | (1,539,411) | (620,383) |
| Current Taxes | (877,275) | (858,639) |
| Income<br> tax and social contribution for the year | (877,275) | (858,639) |
| Deferred Taxes | (624,049) | 465,482 |
| Constitution<br> / realization in the period on temporary additions and exclusions – Result | (624,049) | 465,482 |
| Period Movement: | (38,087) | (243,573) |
| Negative<br> social contribution base | (10,045) | (94,699) |
| Tax loss | (28,042) | (148,874) |
| Constitution in the period on: | - | 16,347 |
| Negative<br> social contribution base | - | 4,157 |
| Tax loss | - | 12,190 |
| Total deferred taxes | (662,136) | 238,256 |
| Income tax and social contribution | (1,539,411) | (620,383) |
(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%.
ExchangeHedge 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 credit lines that are extended to its customers for financing foreign trade and working capital financing (Note 12).
To hedge the exposure to exchange rate variations, the Bank uses derivatives and funding (economic hedge).
Since January 2021 the law 14,031, of July 28, 2020, determined that as of January 2021, 50% of the exchange rate variation of investments abroad must be taxed/deducted Social Contribution on Net Income (CSLL) and Income Taz (IRPJ).
Regarding pis and coffins the exchange variation on the investment abroad is taxable and deductible, and in order to protect the net results on a after tax basis, derivatives are executed.
The different tax treatment of such exchange differences results in volatility in the “Income from operations before taxation” and in the item “Income taxes”. Below are the effects of the transactions carried out, as well as the total effect of the currency hedge for the periods ended March 31, 2022 and 2021:
| In R$ Million | 01/01 to 03/31/2022 | 01/01 to 03/31/2021 |
|---|---|---|
| Financial Operations | ||
| Result<br> generated by the exchange rate variations on the Bank’s investment in the<br> Cayman Branch | (6,178) | 5,015 |
| Result<br> generated by derivative contracts used as hedge | 6,480 | (7,409) |
| Tax Expenses | ||
| Tax<br> effect of derivative contracts used as hedge - PIS/COFINS | (302) | 345 |
| Income Tax and Social Contribution | ||
| Tax<br> effect of derivative contracts used as hedge - IR/CS | - | 2,050 |
11.
Other Assets
| Bank | Consolidated | |||
|---|---|---|---|---|
| 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | |
| Notes<br> and Credits Receivable (Note 8.a) | ||||
| Credit<br> Cards | 37,271,768 | 38,697,565 | 37,271,768 | 38,697,565 |
| Receivables<br> (1) | 25,911,838 | 27,228,813 | 30,849,978 | 31,770,716 |
| Escrow<br> Deposits for: | ||||
| Tax<br> Claims | 5,593,771 | 5,481,136 | 7,382,681 | 7,258,166 |
| Labor<br> Claims | 1,564,962 | 1,648,343 | 1,676,471 | 1,752,187 |
| Others -<br> Civil | 1,100,590 | 1,096,701 | 1,289,763 | 1,286,274 |
| Contract<br> Guarantees - Former Controlling Stockholders (Note 18) | 496 | 496 | 496 | 496 |
| Reimbursable<br> Payments | 180,732 | 178,077 | 195,992 | 192,562 |
| Salary<br> Advances/Others | 1,670,661 | 199,212 | 2,750,224 | 856,579 |
| Employee<br> Benefit Plan | 256,757 | 231,100 | 307,499 | 287,809 |
| Debtors<br> for Purchase of Assets | 559,547 | 551,756 | 629,837 | 602,780 |
| Receivable<br> from Affiliates | 34,349 | 38,827 | 140,363 | 242,217 |
| Income<br> Receivable | 3,076,489 | 3,077,494 | 2,853,413 | 3,110,771 |
| Other<br> Values and Assets | 1,875,228 | 1,361,411 | 2,069,647 | 1,552,099 |
| Others | 3,759,853 | 2,081,481 | 4,434,691 | 2,755,980 |
| Total | 82,857,041 | 81,872,412 | 91,852,823 | 90,366,201 |
(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.
Information on Dependencies Abroad
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.
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) | |||
|---|---|---|---|---|
| 3/31/2022 | 12/31/2021 | 3/31/2022 | 12/31/2021 | |
| Assets | 148,214,805 | 158,796,211 | 81,953,409 | 81,914,595 |
| Current and Long-term Assets | 148,214,778 | 158,796,179 | 81,953,278 | 81,914,414 |
| Cash | 620,828 | 9,127,129 | 938,949 | 1,630,327 |
| Interbank<br> Investments | 43,305,411 | 26,583,540 | 10,302,813 | 13,138,145 |
| Securities<br> and Derivatives Financial Instruments | 74,933,592 | 89,178,436 | 18,952,455 | 14,433,434 |
| Lending<br> Operations (1) | 13,393,762 | 18,271,074 | 46,148,540 | 46,639,821 |
| Foreign<br> Exchange Portfolio | 11,566,538 | 11,128,060 | 5,180,305 | 5,473,283 |
| Others | 4,394,647 | 4,507,940 | 430,216 | 599,404 |
| Permanent Assets | 27 | 32 | 131 | 181 |
| Liabilities | 148,214,805 | 158,796,211 | 81,953,409 | 81,914,595 |
| Current and Long-term Liabilities | 117,096,588 | 120,638,194 | 74,392,920 | 74,024,804 |
| Deposits<br> and Money Market Funding | 38,370,562 | 30,505,351 | 8,655,181 | 7,973,185 |
| Funds<br> from Acceptance and Issuance of Securities | 18,928,848 | 20,395,593 | 31,931,580 | 36,365,115 |
| Debt<br> Instruments Eligible to Compose Capital | 12,159,140 | 14,088,607 | - | - |
| Borrowings<br> (2) | 22,797,167 | 31,320,740 | 26,035,845 | 23,239,576 |
| Foreign<br> Exchange Portfolio | 11,477,664 | 11,050,587 | 5,185,943 | 5,480,439 |
| Others | 13,363,207 | 13,277,316 | 2,584,371 | 966,489 |
| Deferred Income | 25,613 | 30,309 | - **** | 11,693 |
| Stockholders' Equity | 31,092,604 | 38,127,708 | 7,560,489 | 7,878,098 |
| 01/01 a 31/03/2022 | 01/01 a <br>31/03/2021 | 01/01 a 31/03/2022 | 01/01 a <br>31/03/2021 | |
| Net<br> Income | 636,877 | 750,306 | 205,490 | 78,112 |
(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) | 03/31/2022 | ||||
|---|---|---|---|---|---|
| Investments | Activity | Common Shares and Quotas | Preferred Shares | Direct Participation | Participation |
| Controlled by Banco Santander | |||||
| Atual<br> Serviços de Recuperação de Créditos e Meios Digitais S.A. | Recovery of Defaulted Credits | 2,142,011 | - | 100.00% | 100.00% |
| Aymoré<br> Crédito, Financiamento e Investimento S.A. (Aymoré CFI) | Financial | 2,877 | - | 100.00% | 100.00% |
| Banco RCI<br> Brasil S.A. | Bank | 81 | 81 | 39.89% | 39.89% |
| Ben<br> Benefícios e Serviços Instituição de Pagamentos S.A.(BEN Benefícios) | Other Activities | 90,000 | - | 100.00% | 100.00% |
| Esfera<br> Fidelidade S.A. | Other Activities | 10,001 | - | 100.00% | 100.00% |
| GIRA -<br> Gestão Integrada de Recebíveis do Agronegócio S.A | Tecnology | 381 | - | 80.00% | 80.00% |
| Rojo<br> Entretenimento S.A. | Other Activities | 7,417 | - | 94.60% | 94.60% |
| Sanb<br> Promotora de Vendas e Cobrança Ltda. | Other Activities | 30,988 | - | 100.00% | 100.00% |
| Sancap<br> Investimentos e Participações S.A. (Sancap) | Holding | 23,538,159 | - | 100.00% | 100.00% |
| Santander<br> Brasil Administradora de Consórcio Ltda. (Santander Brasil Consórcio) | Buying Club | 436,441 | - | 100.00% | 100.00% |
| Santander<br> Corretora de Câmbio e Valores Mobiliários S.A. | Broker | 14,067,640 | 14,067,640 | 99.99% | 99.99% |
| Santander<br> Corretora de Seguros, Investimentos e Serviços S.A. (Santander Corretora de<br> Seguros) | Other Activities | 7,184 | - | 100.00% | 100.00% |
| Santander<br> Holding Imobiliária S.A. | Holding | 558,601 | - | 100.00% | 100.00% |
| Santander<br> Leasing S.A. Arrendamento Mercantil (Santander Leasing) | Leasing | 164 | - | 100.00% | 100.00% |
| F1RST<br> Tecnologia e Inovação Ltda. | Other Activities | 196,979 | - | 100.00% | 100.00% |
| Paytec<br> Tecnologia em Pagamentos Ltda. | Other Activities | 9,100 | - | 100.00% | 100.00% |
| SX<br> Negócios Ltda. | Other Activities | 75,050 | - | 100.00% | 100.00% |
| Controlled by Aymoré CFI | |||||
| Banco PSA | Bank | 105 | - | 0.00% | 50.00% |
| Banco<br> Hyundai Capital Brasil S.A. | Bank | 150,000 | - | 0.00% | 50.00% |
| Solution<br> 4Fleet Consultoria Empresarial S.A. | Other Activities | 328 | - | 0.00% | 80.00% |
| Controlled by Santander Leasing | |||||
| Banco<br> Bandepe S.A. | Bank | 3,589 | - | 0.00% | 100.00% |
| PI<br> Distribuidora de Títulos e Valores Mobiliários S.A. | Leasing | 348 | - | 0.00% | 100.00% |
| Controlled by Sancap | |||||
| Santander<br> Capitalização S.A. | Capitalization | 64,615 | - | 0.00% | 100.00% |
| Evidence<br> Previdência S.A. | Private Pension | 42,819,564 | - | 0.00% | 100.00% |
| Controlled by Santander Holding Imobiliária S.A. | |||||
| Summer<br> Empreendimentos Ltda. | Other Activities | 17,084 | - | 0.00% | 100.00% |
| Apê11<br> Tecnologia e Negócios Imobiliários S.A. | Other Activities | 3,808 | - | 0.00% | 90.00% |
| Controlled by Atual Serviços de Recuperação de Créditos e Meios Digitais S.A. | |||||
| Return<br> Capital Serviços de Recuperação de Créditos S.A. | Collection and Recover of Credit Management | 200 | - | 0.00% | 100.00% |
| Liderança<br> Serviços Especializados em Cobranças Ltda. | Collection and Recover of Credit Management | 250 | 0.00% | 100.00% | |
| Controlled by Paytec Tecnologia em Pagamentos Ltda. | |||||
| Paytec<br> Logística e Armazém Ltda. | Other Activities | 100 | - | 0.00% | 100.00% |
| Controlled by PI Distribuidora de Títulos e Valores Mobiliários S.A. | |||||
| Toro<br> Corretora de Títulos de Valores Mobiliários Ltda. | Broker | 19,140 | - | 0.00% | 60.00% |
| Toro<br> Investimentos S.A. | Broker | 4,863 | - | 0.00% | 2.15% |
| Controlled by Toro Corretora de Títulos de Valores Mobiliários Ltda | |||||
| Toro<br> Investimentos S.A. | Broker | 217,961 | - | 0.00% | 96.41% |
| Jointly Controlled Companies by Sancap | |||||
| Santander<br> Auto S.A. | Other Activities | 22,452 | - | 0.00% | 50.00% |
| Controlled by Toro Investimentos S.A. | |||||
| Monetus<br> Investimentos S.A. | Other Activities | 918,264 | - | 0.00% | 100.00% |
| Mobills<br> Labs Soluções em Tecnologia LTDA. | Other Activities | 1,122,000 | - | 0.00% | 100.00% |
| Controlled by Mobills Labs Soluções em Tecnologia LTDA. | |||||
| --- | --- | --- | --- | --- | --- |
| MOB<br> SOLUÇÕES EM TECNOLOGIA LTDA. | Other Activities | 20 | - | 0.00% | 100.00% |
| Controlled by Monetus Investimentos S.A. | |||||
| MONETUS<br> CORRETORA DE SEGUROS LTDA. | Other Activities | 10 | - | 0.00% | 100.00% |
| Quantity of Shares or Quotas Owned (in Thousands) | 03/31/2022 | ||||
| --- | --- | --- | --- | --- | --- |
| Investments | Activity | Common Shares and Quotas | Preferred Shares | Direct Participation | Participation |
| Jointly Controlled Companies by Banco Santander | |||||
| Estruturadora<br> Brasileira de Projetos S.A. - EBP (EBP) | Other Activities | 5,076 | 1,736 | 11.11% | 11.11% |
| Gestora<br> de Inteligência de Crédito S.A. (Gestora de Crédito) | Credit Bureau | 5,090 | 4,809 | 19.45% | 19.45% |
| Campo<br> Grande Empreendimentos Ltda. | Other Activities | 255 | - | 25.32% | 25.32% |
| Jointly Controlled Companies by Santander Corretora de Seguros | |||||
| Webmotors<br> S.A. | Other Activities | 425,126,827 | - | 0.00% | 70.00% |
| Tecnologia<br> Bancária S.A. (TecBan) | Other Activities | 743,944 | 68,771 | 0.00% | 18.98% |
| PSA<br> Corretora de Seguros e Serviços Ltda. (PSA Corretora de Seguros) | Insurance Broker | 450 | - | 0.00% | 50.00% |
| Hyundai<br> Corretora de Seguros Ltda. | Insurance Broker | 1,000 | - | 0.00% | 50.00% |
| Jointly Controlled Companies by Webmotors S.A. | |||||
| Loop<br> Gestão de Pátios S.A. (Loop) | Other Activities | 23,243 | - | 0.00% | 51.00% |
| Car10<br> Tecnologia e Informação S.A. | Other Activities | 6,591 | - | 0.00% | 66.67% |
| Jointly Controlled Companies by TecBan | |||||
| Tbnet<br> Comércio, Locação e Administração Ltda. (Tbnet) | Other Activities | 542,004 | - | 0.00% | 100.00% |
| TecBan<br> Serviços Integrados Ltda. | Other Activities | 999 | - | 0.00% | 100.00% |
| Jointly Controlled Companies by Tebnet | |||||
| Tbforte<br> 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;
· Wholesale Credit Rights Investment Fund – Non-Standardized ;
· Current - Multimarket Investment Fund for Private Investment abroad (6); and
· Verbena FCVS - Receivables Investment Fund. (7)
(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 started to be consolidated in August 2020 and is controlled through Atual Serviços de Recovery de Créditos e Meios Digitais S.A.
(7) 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 | |||||||||||||||||||||||
| 3/31/2022 | 01/01 to 03/31/2022 | 3/31/2022 | 12/31/2021 | 01/01 to<br><br>03/31/2022 | 01/01 to 03/31/2021 | |||||||||||||||||||||
| Controlled by Banco Santander | ||||||||||||||||||||||||||
| Santander<br> Leasing | 11,187,046 | 118,859 | 11,187,046 | 11,172,028 | 118,859 | 48,672 | ||||||||||||||||||||
| Banco<br> Bandepe S.A. | - | - | - | - | - | 30,458 | ||||||||||||||||||||
| Santander<br> Brasil EFC | - | - | - | - | - | (35,574) | ||||||||||||||||||||
| Santander<br> Corretora de Seguros | 4,864,281 | 265,848 | 4,869,355 | 4,609,417 | 265,848 | 219,998 | ||||||||||||||||||||
| Getnet<br> S.A. | - | - | - | - | - | 56,220 | ||||||||||||||||||||
| Atual<br> Serviços de Recuperação de Créditos e Meios Digitais S.A. | 2,756,593 | 66,214 | 2,756,593 | 2,690,379 | 66,214 | 34,049 | ||||||||||||||||||||
| Aymoré<br> CFI | 2,386,553 | 81,349 | 2,386,553 | 2,305,203 | 81,349 | 356,743 | ||||||||||||||||||||
| Sancap | 1,174,255 | 281,141 | 1,174,255 | 992,882 | 281,141 | 47,844 | ||||||||||||||||||||
| Santander<br> CCVM | 844,633 | 37,633 | 844,633 | 807,096 | 37,633 | 23,475 | ||||||||||||||||||||
| Banco RCI<br> Brasil S.A. | 1,549,578 | 31,591 | 618,141 | 608,156 | 12,602 | 10,942 | ||||||||||||||||||||
| Santander<br> Brasil Consórcio | 1,122,562 | 108,582 | 1,122,562 | 1,013,980 | 108,582 | 77,708 | ||||||||||||||||||||
| CIP S.A | 1,996,334 | 82,016 | 356,744 | - | - | - | ||||||||||||||||||||
| Outros | 1,917,866 | 68,307 | 1,865,965 | 1,759,775 | 90,095 | 58,687 | ||||||||||||||||||||
| Santander<br> Holding Imobiliária S.A. | 468,333 | 468,333 | 468,333 | 457,083 | 11,250 | (297) | ||||||||||||||||||||
| Santander<br> Brasil Tecnologia S.A. | - | - | - | 205,744 | - | (12.427) | ||||||||||||||||||||
| Rojo<br> Entretenimento S.A. | 129,117 | 610 | 122,145 | 121,568 | 577 | (1.478) | ||||||||||||||||||||
| BEN<br> Benefícios | 60,215 | (5,830) | 60,215 | 66,045 | (5,830) | (206) | ||||||||||||||||||||
| Esfera<br> Fidelidade S.A. | 854,710 | 135,293 | 854,710 | 719,417 | 135,293 | 76.131 | ||||||||||||||||||||
| SX<br> Negócios Ltda. | 75,094 | 877 | 75,094 | 74,217 | 877 | 11.283 | ||||||||||||||||||||
| Jointly Controlled Companies Directly and Indirectly by Banco Santander | - | - | - | - | - | - | ||||||||||||||||||||
| EBP | 11,361 | 41 | 1,262 | 1,258 | 5 | - | ||||||||||||||||||||
| Gestora<br> de Crédito | 88,674 | (20,754) | 17,735 | 13,522 | (4,151) | (4,148) | ||||||||||||||||||||
| Gira -<br> Gestão Integrada de Recebíveis do Agronegócio S.A. | 18,561 | 7,600 | 24,978 | 12,438 | 12,540 | (178) | ||||||||||||||||||||
| Santander<br> Tecnologia e Inovação Ltda. | 187,679 | (51,568) | 189,128 | 25,208 | (51,568) | (5,365) | ||||||||||||||||||||
| SANB<br> Promotora de Vendas e Cobrança Ltda. | 9,634 | (4,553) | 9,634 | 14,187 | (4,553) | (4,628) | ||||||||||||||||||||
| Tecnologia<br> em Pagamentos Ltda. | 14,488 | (4,659) | 14,488 | 18,833 | (4,345) | - | ||||||||||||||||||||
| Campo<br> Grande Empreendimentos Ltda. | - | - | - | 255 | - | - | ||||||||||||||||||||
| Others | ||||||||||||||||||||||||||
| Gira<br> Goodwill | - | - | 4,996 | 5,771 | - | - | ||||||||||||||||||||
| Paytec<br> Godwill | - | - | 13,418 | 13,991 | - | - | ||||||||||||||||||||
| Paylog | - | - | 9,829 | 10,238 | - | - | ||||||||||||||||||||
| Total | 27,181,847 | 25,958,916 | 1,062,323 | 929,222 |
| Consolidated | ||||||
|---|---|---|---|---|---|---|
| Adjusted Stockholders' Equity | Net Income (Loss) Adjusted | Investments Value | Equity Accounting Results | |||
| 03/31/2022 | 01/01 to 03/31/2022 | 3/31/2022 | 12/31/2021 | 01/01 to<br><br>03/31/2022 | 01/01 to 03/31/2021 | |
| Jointly Controlled Companies Directly and Indirectly by Banco Santander | ||||||
| TecBan | 868,549 | 16,996 | 164,851 | 169,676 | 3,226 | 17,696 |
| Gestora<br> de Crédito | 88,674 | (20,754) | 17,735 | 13,522 | (4,151) | (4,148) |
| Webmotors<br> S.A. | 284,001 | 13,548 | 198,801 | 189,317 | 9,483 | 5,497 |
| EBP | 11,361 | 41 | 1,262 | 1,258 | 5 | 108 |
| Santander<br> Auto | 45,560 | 3,268 | 22,780 | 21,262 | 1,634 | 631 |
| Hyundai<br> Corretora de Seguros Ltda. | 2,480 | (40) | 1,240 | 1,260 | (20) | 76 |
| PSA<br> Corretora | 1,268 | 187 | 634 | 540 | 94 | (127) |
| CIP S.A. (1) | 1,996,334 | 82,016 | 356,744 | - | - | - |
| Others | - | 255 | - | (12,083) | ||
| Total | 764,047 | 408,693 | 10,271 | 7,650 |
(1) In March 2022, the Interbank Payments Chamber (CIP) was demutualized. The non-profit association underwent a spin-off whose part of the equity was incorporated into a new for-profit CIP S.A.
c) Corporate Restructuring
During the period ended March 31, 2022 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 interest in CSD Central de Serviços de Registro e Depósito aosMercados Financeiro e de Capitals S.A.
On January 21, 2022, Santander Corretora de Seguros, Investimentos e Serviços S.A. (“Santander Corretora”), together with other investors, with CSD Central de Serviços de Registro e Depósito aos Mercados Financeiro e de Capitals S.A. (“CSD BR”) and its respective shareholders, a certain investment agreement and other covenants with a view to subscribing a minority interest in CSD BR. CSD BR operates as a registrar of financial assets, derivatives, securities and insurance policies, authorized by the Central Bank of Brazil, the Securities and Exchange Commission and the Superintendence of Private Insurance. The completion of the Transaction will be subject to the execution of 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 Apê11 Tecnologia e NegóciosImobiliários Ltda.
On September 2, 2021, Santander Holding Imobiliária S.A. (“SHI”) – a wholly-owned subsidiary of the Company – entered into, together with the partners of Apê11 Tecnologia e Negócios Imobiliários Ltda. (“Apê11”), certain Share Purchase Agreement and Investment Agreement, by which, once the transaction is completed, it will hold 90% of the capital stock of Apê11 (“Transaction”). Apê11 acts as a collaborative marketplace, pioneer in digitizing the journey of buying houses and apartments. After the fulfillment of the conditions precedent established in the Share Purchase and Sale Investment Agreement, the closing of the Transaction was formalized on December 16, 2021.
iii)Acquisition of equity interest in Liderança Serviços Especializados emCobranças Ltda. and Fozcobra Agência de Cobranças Ltda.
On August 4, 2021, Atual Serviços de Crédito e Meios Digitais S.A. (“Atual”) – a wholly-owned subsidiary of the Company – entered into, together with the partners of Líder Serviços Especializados em Cobranças Ltda. (“Leaderança”), a certain Agreement for the Assignment of Quotas and Other Covenants, by which, once the transaction is carried out, it will hold 100% of the capital stock of Leadership (“Operation”). Leadership works in the area of overdue credit recovery, providing extrajudicial collection services to financial institutions of different sizes, retail chains, telecommunications operators and automakers, among others, and has a subsidiary, Fozcobra Agência de Cobranças Ltda. After the fulfillment of the conditions precedent established in the Agreement for the Assignment of Quotas and Other Covenants, the closing of the Transaction was formalized on October 1, 2021. Subsequently, Fozcobra was merged into Leadership on October 4, 2021.
iv) Acquisition of Equity Interest in Solutions 4 Fleet ConsultoriaEmpresarial Ltda.
On July 13, 2021, Aymoré Crédito, Financiamento e Investimento S.A. (“Aymoré”), together with the partners of Solution 4 Fleet Consultoria Empresarial Ltda. (“Solutions4Fleet”), certain Investment and Share Purchase Agreement, whereby, once the transaction is completed, Aymoré will hold 80% of the share capital of Solution4Fleet (“Transaction”). Solution4Fleet specializes in structuring vehicle rental and subscription businesses – a long-term rental modality for individuals. After complying with the conditions precedent established in the Share Purchase and Sale Investment Agreement, the closing of the Transaction was formalized on October 8, 2021.
v) Acquisition of equity interest in Car10 Tecnologia e InformaçãoS.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 conditions precedent established in the Investment Agreement for the Purchase and Sale of Shares, the closing of the Transaction was formalized on September 20, 2021.
vi) 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 S.A. (“Pi”), Toro Corretora de Títulos e Valores Mobiliários S.A. (“Toro CTVM”), and Toro Investimentos S.A. (“Toro Investimentos” and, together with Toro CTVM, “Toro”) entered into, together with the partners of Monetus Investimentos Ltda., and Monetus Corretora de Seguros Ltda. (together “Monetus”), investment agreement and other covenants, whereby, once the transaction is completed, Toro Investimentos will hold 100% of the capital stock of Monetus (“Transaction”). Monetus, originally from Belo Horizonte, carries out its activities through an automated objective-based investment application, after considering the client's needs and risk profile, the application automatically creates, executes and monitors a diversified and personalized investment strategy that use the platform to undertake and serve customers in the best way. After the fulfillment of the applicable conditions precedent, the closing of the Transaction was formalized on January 4, 2022.
vii) Acquisition of Equity Interest in Mobills Labs Soluções emTecnologia 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. After the fulfillment of the applicable conditions precedent, the closing of the Transaction was formalized on January 4, 2022.
viii) Corporate reorganization Santander Leasing S.A. ArrendamentoMercantil 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 (five billion, three hundred and sixty-five million, one hundred and eighty-nine thousand), in reason for the merger of shares issued by Banco Bandepe held by Banco Santander.
ix) Partial spin-off and segregation of Getnet Adquirência eServiços 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 will become direct shareholders of Getnet in proportion to their participation in the capital of Santander Brasil and the shares and Units of Santander Brasil will 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 R$ 2,000,000 (two billion reais), without the cancellation of shares, with Santander Brasil's share capital increasing to R$ 57,000,000 (fifty-seven billion reais) to 55,000,000 (fifty-five billion reais).
x) Signing of an agreement for the Acquisition of Paytec Tecnologiaem 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.
xi) 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.
xii) Signing of an Agreement for the Acquisition of Equity Interestin Gira – GestãoIntegrada 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.
14.
Fixed Assets
| Bank | ||||
|---|---|---|---|---|
| 3/31/2022 | 12/31/2021 | |||
| Cost | Depreciation | Net | Net | |
| Real Estate | 2,461,666 | (931,986) | 1,529,680 | 1,546,882 |
| Land | 640,042 | - | 640,042 | 640,772 |
| Buildings | 1,821,624 | (931,986) | 889,638 | 906,110 |
| Others Fixed Assets | 13,316,135 | (8,963,485) | 4,352,649 | 4,519,804 |
| Installations,<br> Furniture and Equipment | 5,541,592 | (3,617,187) | 1,924,405 | 1,982,893 |
| Data<br> Processing Equipment | 2,440,202 | (1,567,807) | 872,395 | 927,367 |
| Leasehold<br> Improvements | 4,412,189 | (3,196,938) | 1,215,250 | 1,271,430 |
| Security<br> and Communication Equipment | 843,883 | (554,094) | 289,789 | 282,965 |
| Others | 78,269 | (27,459) | 50,810 | 55,149 |
| Total | 15,777,801 | (9,895,472) | 5,882,329 | 6,066,686 |
| Consolidated | ||||
| 3/31/2022 | 12/31/2021 | |||
| Cost | Depreciation | Net | Net | |
| Real Estate | 2,742,485 | (995,645) | 1,746,840 | 1,774,302 |
| Land | 709,810 | - | 709,810 | 712,200 |
| Buildings | 2,032,675 | (995,645) | 1,037,030 | 1,062,102 |
| Others Fixed Assets | 13,559,350 | (9,107,904) | 4,451,446 | 4,610,046 |
| Installations,<br> Furniture and Equipment | 5,584,892 | (3,646,001) | 1,938,891 | 1,983,785 |
| Data<br> Processing Equipment | 2,499,593 | (1,606,397) | 893,196 | 951,003 |
| Leasehold<br> Improvements | 4,528,620 | (3,270,499) | 1,258,121 | 1,316,232 |
| Security<br> and Communication Equipment | 847,924 | (557,474) | 290,449 | 283,684 |
| Others | 98,321 | (27,532) | 70,789 | 75,342 |
| Total | 16,301,835 | (10,103,549) | 6,198,286 | 6,384,348 |
15.
Intangibles
| Bank | ||||
|---|---|---|---|---|
| 03/31/2022 | 12/31/2021 | |||
| Cost | Amortization | Net | Net | |
| Goodwill on Acquired Companies | 27,220,515 | (26,567,946) | 652,569 | 702,497 |
| Other Intangible Assets | 10,823,523 | (6,366,731) | 4,456,792 | 4,568,941 |
| Acquisition<br> and Development of Software | 6,783,982 | (4,062,458) | 2,721,524 | 2,711,778 |
| Exclusivity<br> Contracts for Provision of Banking Services | 3,866,162 | (2,187,071) | 1,679,091 | 1,792,934 |
| Others | 173,379 | (117,202) | 56,177 | 64,229 |
| Total | 38,044,038 | (32,934,677) | 5,109,361 | 5,271,438 |
| Consolidated | ||||
| 03/31/2022 | 12/31/2021 | |||
| Cost | Amortization | Net | Net | |
| Goodwill on Acquired Companies | 28,211,364 | (26,779,647) | 1,431,717 | 1,434,721 |
| Other Intangible Assets | 11,172,701 | (6,598,727) | 4,573,974 | 4,687,979 |
| Acquisition<br> and Development of Software | 7,117,026 | (4,264,774) | 2,852,252 | 2,845,136 |
| Exclusivity<br> Contracts for Provision of Banking Services | 3,866,162 | (2,187,071) | 1,679,091 | 1,792,935 |
| Others | 189,513 | (146,882) | 42,631 | 49,908 |
| --- | --- | --- | --- | --- |
| Total | 39,384,065 | (33,378,374) | 6,005,691 | 6,122,700 |
(*) For the period ended March 31, 2022, there was no impairment.
16.
Funding
a) Openingof Equity Accounts
Accounts
| Bank | ||||||
|---|---|---|---|---|---|---|
| 03/31/2022 | 12/31/2021 | |||||
| Without Maturity | Up to 3 Months | From 3 to 12 Months | Over 12 Months | Total | Total | |
| Deposits | 105,410,419 | 100,209,997 | 83,967,686 | 107,785,310 | 397,373,412 | 406,882,409 |
| Demand<br> Deposits | 42,434,170 | - | - | - | 42,434,170 | 40,776,429 |
| Savings<br> Deposits | 62,909,853 | - | - | - | 62,909,853 | 65,220,066 |
| Interbank<br> Deposits | - | 1,921,328 | 3,105,525 | 279,304 | 5,306,157 | 5,621,237 |
| Time<br> Deposits (1) | 66,396 | 98,288,669 | 80,862,161 | 107,506,006 | 286,723,232 | 295,264,677 |
| Other<br> Deposits | - | - | - | - | - | - |
| Money Market Funding | - | 89,214,264 | 5,667,868 | 19,184,114 | 114,066,246 | 100,870,087 |
| Own<br> Portfolio | - | 76,211,794 | 568,513 | 1,080,085 | 77,860,392 | 75,114,059 |
| Government<br> Securities | - | 63,661,129 | 558,448 | 1,061,477 | 65,281,054 | 61,635,928 |
| Debt<br> Securities in Issue | - | 1,641 | - | - | 1,641 | - |
| Others | - | 12,549,024 | 10,065 | 18,609 | 12,577,697 | 13,478,131 |
| Third<br> Parties | - | 13,002,470 | - | - | 13,002,470 | 6,859,710 |
| Linked<br> to Trading Portfolio Operations | - | - | 5,099,355 | 18,104,029 | 23,203,384 | 18,896,318 |
| Funds from Acceptance and Issuance of Securities | - | 8,474,712 | 23,669,795 | 91,888,885 | 124,033,392 | 115,842,979 |
| Real<br> Estate Credit Notes, Mortgage Notes, Credit and Similar Notes | - | 6,583,070 | 18,189,340 | 59,561,823 | 84,334,233 | 73,517,897 |
| Real<br> Estate Credit Notes - LCI (1) | - | 3,545,559 | 9,032,280 | 24,983,368 | 37,561,207 | 28,924,170 |
| Agribusiness<br> Credit Notes - LCA | - | 2,596,343 | 5,264,011 | 8,746,239 | 16,606,592 | 16,989,434 |
| Treasury<br> Bills - LF (2) | - | 76,655 | 3,743,883 | 23,449,280 | 27,269,818 | 25,074,264 |
| Guaranteed<br> Real Estate Credit Notes - LIG (3) | - | 364,514 | 149,167 | 2,382,936 | 2,896,616 | 2,530,030 |
| Securities<br> Issued Abroad | - | 1,759,667 | 4,303,529 | 29,163,823 | 35,227,020 | 38,427,171 |
| Funding<br> by Structured Operations Certificates | - | 131,976 | 1,176,926 | 3,163,238 | 4,472,140 | 3,897,911 |
| Borrowings and Onlendings | - | 25,114,245 | 45,196,678 | 12,058,007 | 82,368,930 | 91,581,834 |
| Foreign<br> Borrowings | - | 23,364,309 | 42,800,315 | 4,724,480 | 70,889,104 | 79,728,750 |
| Import<br> and Export Financing Lines | - | 12,691,819 | 24,185,321 | 1,082,210 | 37,959,350 | 50,769,169 |
| Other<br> Credit Lines | - | 10,672,490 | 18,614,994 | 3,642,270 | 32,929,754 | 28,959,581 |
| Domestic Onlendings | - | 1,749,936 | 2,396,363 | 7,333,527 | 11,479,826 | 11,853,084 |
| Total | 105,410,419 | 223,013,218 | 158,502,027 | 230,916,316 | 717,841,980 | 715,177,309 |
| Consolidated | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| 03/31/2022 | 12/31/2021 | |||||
| Without Maturity | Up to 3 Months | From 3 to 12 Months | Over 12 Months | Total | Total | |
| Deposits | 105,170,542 | 100,997,547 | 79,940,615 | 107,506,006 | 393,614,710 | 403,639,687 |
| Demand<br> Deposits | 42,194,293 | - | - | 42,194,293 | 40,454,250 | |
| Savings Deposits | 62,909,853 | - | - | - | 62,909,853 | 65,220,066 |
| Interbank<br> Deposits | - | 2,373,385 | 1,685,035 | 615,842 | 4,674,262 | 4,723,077 |
| Time<br> Deposits (1) | 66,396 | 98,624,162 | 78,255,580 | 106,890,164 | 283,836,302 | 293,242,294 |
| Money Market Funding | - | 84,744,840 | 5,315,171 | 19,184,114 | 109,244,124 | 95,648,600 |
| Own<br> Portfolio | - | 71,742,370 | 215,815 | 1,080,085 | 73,038,270 | 71,192,568 |
| Government<br> Securities | - | 59,191,705 | 205,750 | 1,061,477 | 60,458,932 | 57,714,437 |
| Debt<br> Securities in Issue | - | 1,641 | - | - | 1,641 | - |
| Others | - | 12,549,024 | 10,065 | 18,609 | 12,577,697 | 13,478,131 |
| Third<br> Parties | - | 13,002,470 | - | - | 13,002,470 | 5,559,714 |
| Linked<br> to Trading Portfolio Operations | - | - | 5,099,355 | 18,104,029 | 23,203,384 | 18,896,318 |
| Funds from Acceptance and Issuance of Securities | - | 9,276,740 | 23,771,124 | 75,670,802 | 108,718,666 | 95,380,860 |
| --- | --- | --- | --- | --- | --- | --- |
| Exchange<br> Acceptances | - | 76,393 | 297,987 | 946,652 | 1,321,032 | 1,361,443 |
| Real<br> Estate Credit Notes, Mortgage Notes, Credit and Similar Notes | - | 6,848,283 | 19,637,464 | 62,142,648 | 88,628,395 | 77,169,438 |
| Real<br> Estate Credit Notes - LCI (1) | - | 3,545,559 | 9,032,280 | 24,983,368 | 37,561,207 | 28,924,170 |
| Agribusiness<br> Credit Notes - LCA | - | 2,596,343 | 5,264,011 | 8,746,239 | 16,606,592 | 16,989,434 |
| Treasury<br> Bills - LF (2) | - | 341,868 | 5,192,007 | 26,030,105 | 31,563,980 | 28,725,804 |
| Guaranteed<br> Real Estate Credit Notes - LIG (3) | - | 364,514 | 149,167 | 2,382,936 | 2,896,616 | 2,530,030 |
| Securities<br> Issued Abroad | - | 2,220,088 | 2,658,748 | 9,418,263 | 14,297,099 | 12,952,068 |
| Funding<br> by Structured Operations Certificates | - | 131,976 | 1,176,926 | 3,163,238 | 4,472,140 | 3,897,911 |
| Borrowings and Onlendings | - | 25,138,569 | 45,196,678 | 12,058,007 | 82,393,254 | 91,586,750 |
| Domestic<br> Borrowings | - | 24,324 | - | - | 24,324 | 4,916 |
| Foreign<br> Borrowings | - | 23,364,309 | 42,800,315 | 4,724,480 | 70,889,104 | 79,728,750 |
| Import<br> and Export Financing Lines | - | 12,691,819 | 24,185,321 | 1,082,210 | 37,959,350 | 50,769,169 |
| Other<br> Credit Lines | - | 10,672,490 | 18,614,994 | 3,642,270 | 32,929,754 | 28,959,581 |
| Domestic<br> Onlendings | - | 1,749,936 | 2,396,363 | 7,333,527 | 11,479,826 | 11,853,084 |
| Total | 105,170,542 | 220,157,696 | 154,223,588 | 214,418,929 | 693,970,754 | 686,255,896 |
(1) They consider the maturities established in the respective investments, with the possibility of immediate withdrawal, in advance of their due date.
(2) Mortgage letters of credit are fixed income securities backed by real estate credits and guaranteed by mortgage or by fiduciary sale of immovable property. As of March 31, 2022, they mature between 2022 and 2028.
(3) The main characteristics of financial bills are a minimum term of two years, a minimum nominal value of R$50 and early redemption permission of only 5% of the amount issued. As of March 31, 2022, they mature between 2022 and 2031.
(4) Guaranteed Real Estate Bonds are fixed income securities backed by real estate credits guaranteed by the issuer and by a pool of real estate credits separated from the issuer's other assets. On March 31, 2022, they mature between 2022 and 2025 (12/31/2021 - with maturity between 2022 and 2035).
(5) Funding carried out under the Special Compulsory Liquidity line pursuant to Resolution 4,795/20.
In the Bank and in the Consolidated, 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 for exports and imports, whose maturities run through 2031 (12/31/2021 - until 2024) and are subject to financial charges, corresponding to exchange rate variation plus interest ranging from 0.42% to 5.7% p.a. (12/31/2021 - from 0.35% p.a. to 4.3% p.a.).
The onlending obligations of 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 BNDES System's operating policies.
| Bank | Consolidated | |||||||
|---|---|---|---|---|---|---|---|---|
| Eurobonds | Issuance | Maturity | Currency | Interest Rate (p.to) | 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 |
| Eurobonds | 2018 | 2025 | USD | 4.4% | 98,933 | 117,150 | 98,933 | 117,150 |
| Eurobonds | 2018 | 2025 | USD | 0% to 4.4% | 98,367 | 771,300 | 98,367 | 771,300 |
| Eurobonds | 2019 | 2022 | USD | 4.4% | 28,769 | 28,088 | 1,369 | - |
| Eurobonds | 2019 | 2022 | USD | 0% to 4.4% | 143,326 | 106,805 | 6,821 | - |
| Eurobonds | 2019 | 2023 | USD | 0% to 4.4% | 94,405 | 796,097 | 4,493 | - |
| Eurobonds | 2019 | 2023 | USD | CDI + 2.65% | 3,831 | 4,465 | 182 | - |
| Eurobonds | 2019 | 2024 | USD | 4.4% | 128,141 | 133,796 | 6,099 | - |
| Eurobonds | 2019 | 2024 | USD | 0% to 4.4% | 1,098,215 | 2,193,989 | 52,267 | - |
| Eurobonds | 2019 | 2024 | USD | CDI + 2.65% | 23,789 | 26,424 | 1,132 | - |
| Eurobonds | 2019 | 2025 | USD | 0% to 4.4% | 319,064 | 369,554 | 196,241 | 225,533 |
| Eurobonds | 2019 | 2026 | USD | 4.4% | 75,923 | 75,716 | 75,923 | 75,716 |
| Eurobonds | 2019 | 2026 | USD | 0% to 4.4% | 287,938 | 293,644 | 13,704 | - |
| Eurobonds | 2019 | 2027 | USD | 0% to 4.4% | 658,799 | 643,846 | 648,740 | 632,831 |
| Eurobonds | 2020 | 2022 | USD | 4.4% | 1,048 | 308,279 | 50 | 306,253 |
| Eurobonds | 2020 | 2022 | USD | 0% to 4.4% | 545,434 | 1,703,339 | 25,959 | - |
| Eurobonds | 2020 | 2023 | USD | CDI+6.4% | 4,587 | 75,485 | 218 | - |
| Eurobonds | 2020 | 2023 | USD | 4.4% | 1,160,739 | 4,627 | 421,153 | - |
| Eurobonds | 2020 | 2023 | USD | 0% to 4.4% | 61,857 | 3,220,706 | 2,944 | 455,666 |
| Eurobonds | 2020 | 2024 | USD | CDI+6.4% | 7,748 | 60,388 | 369 | - |
| Eurobonds | 2020 | 2024 | USD | 4.4% | 445,760 | 8,053 | 21,215 | - |
| Eurobonds | 2020 | 2024 | USD | 0% to 4.4% | 126,743 | 2,464,322 | 6,032 | - |
| Eurobonds | 2020 | 2025 | USD | CDI+6.4% | 11,732 | 143,744 | 558 | - |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Eurobonds | 2020 | 2025 | USD | 4.4% | 936,698 | 12,724 | 82,301 | - |
| Eurobonds | 2020 | 2026 | USD | 0% to 4.4% | 15,773 | 4,381,601 | 751 | 46,655 |
| Eurobonds | 2020 | 2026 | USD | 4.4% | 6,637 | 16,760 | 316 | - |
| Eurobonds | 2020 | 2027 | USD | 0% to 4.4% | 19,035 | 7,047 | 906 | - |
| Eurobonds | 2021 | 2022 | USD | 0% to 4.4% | 26,718 | 19,330 | 1,272 | - |
| Eurobonds | 2021 | 2022 | USD | 4.4% | 1,084,833 | 42,728 | 782,312 | - |
| Eurobonds | 2021 | 2022 | USD | 0% to 4.4% | 84,945 | 2,854,297 | 43,744 | 2,005,534 |
| Eurobonds | 2021 | 2022 | USD | Until 9% | 189,442 | 63,104 | 174,252 | 41,749 |
| Eurobonds | 2021 | 2022 | USD | CDI+1.9% | 7,958 | 221,194 | 379 | 205,624 |
| Eurobonds | 2021 | 2022 | USD | CDI+6.4% | 220,176 | 30,459 | 140,433 | - |
| Eurobonds | 2021 | 2023 | USD | CDI + 2.65% | 1,418,871 | 699,890 | 239,929 | 181,116 |
| Eurobonds | 2021 | 2023 | USD | 0% to 4.4% | 201,284 | 1,385,937 | 136,827 | 408,824 |
| Eurobonds | 2021 | 2023 | USD | CDI+1.9% | 450,950 | 157,370 | 216,392 | 157,370 |
| Eurobonds | 2021 | 2024 | USD | CDI + 2.65% | 61,204 | 157,933 | 2,913 | 5,316 |
| Eurobonds | 2021 | 2024 | USD | 4.4% | 2,620,242 | 61,754 | 179,281 | - |
| Eurobonds | 2021 | 2024 | USD | 0% to 4.4% | 8,356 | 2,316,303 | 398 | 246,192 |
| Eurobonds | 2021 | 2024 | USD | Until 9% | 57,905 | 8,157 | 2,756 | - |
| Eurobonds | 2021 | 2024 | USD | CDI+1.9% | 875,551 | 1,233 | 41,670 | - |
| Eurobonds | 2021 | 2025 | USD | CDI + 2.65% | 1,731,273 | 1,043,471 | 150,081 | - |
| Eurobonds | 2021 | 2025 | USD | 0% to 4.4% | 162,865 | 1,601,271 | 7,751 | 593,036 |
| Eurobonds | 2021 | 2025 | USD | CDI+1.9% | 143,379 | 53,765 | 6,824 | - |
| Eurobonds | 2021 | 2026 | USD | CDI + 2.65% | 7,634,265 | 71,890 | 2,970,510 | - |
| Eurobonds | 2021 | 2026 | USD | 0% to 4.4% | 264,310 | 5,963,357 | 12,579 | 3,890,578 |
| Eurobonds | 2021 | 2026 | USD | CDI+1.9% | 1,645,944 | 140,870 | 642,877 | - |
| Eurobonds | 2021 | 2027 | USD | CDI + 2.65% | 68,819 | 692,299 | 3,275 | 210,639 |
| Eurobonds | 2021 | 2027 | USD | 4.4% | 235,252 | 71,252 | 11,196 | - |
| Eurobonds | 2021 | 2028 | USD | 0% to 4.4% | 135,099 | 235,265 | 6,430 | 101,029 |
| Eurobonds | 2021 | 2028 | USD | 0% to 4.4% | 30,157 | 173,048 | 1,435 | - |
| Eurobonds | 2021 | 2028 | USD | Until 9% | 54,046 | 30,126 | 2,572 | 30,126 |
| Eurobonds | 2021 | 2028 | USD | CDI+1.9% | 26,034 | 9,051 | 1,239 | - |
| Eurobonds | 2021 | 2028 | USD | CDI+6.4% | 110,145 | 26,018 | 5,242 | 26,018 |
| Eurobonds | 2021 | 2031 | USD | 0% a 4.4% | 2,217,707 | 2,217,811 | 2,217,707 | 2,217,811 |
| Eurobonds | 2022 | 2022 | USD | 0% a 4.4% | 1,669,950 | - | 1,669,950 | - |
| Eurobonds | 2022 | 2022 | USD | Até 9% | 80,566 | - | 80,566 | - |
| Eurobonds | 2022 | 2022 | USD | CDI+1.9% | 261,820 | - | 259,430 | - |
| Eurobonds | 2022 | 2023 | USD | 0% a 4.4% | 695,955 | - | 695,955 | - |
| Eurobonds | 2022 | 2023 | USD | Até 9% | 8,718 | - | 8,718 | - |
| Eurobonds | 2022 | 2023 | USD | CDI+1.9% | 26,058 | - | 1,240 | - |
| Eurobonds | 2022 | 2024 | USD | 0% a 4.4% | 977,332 | - | 977,332 | - |
| Eurobonds | 2022 | 2024 | USD | CDI+1.9% | 663,120 | - | 411,218 | - |
| Eurobonds | 2022 | 2025 | USD | 0% a 4.4% | 310,976 | - | 310,976 | - |
| Eurobonds | 2022 | 2025 | USD | CDI+1.9% | 252,627 | - | 12,023 | - |
| Eurobonds | 2022 | 2026 | USD | 0% a 4.4% | 6,031 | - | 287 | - |
| Eurobonds | 2022 | 2026 | USD | CDI+1.9% | 250,607 | - | 11,927 | - |
| Eurobonds | 2022 | 2027 | USD | CDI+1.9% | 390,766 | - | 18,598 | - |
| Eurobonds | 2022 | 2029 | USD | CDI+1.9% | 125,033 | - | 5,951 | - |
| Eurobonds | 2022 | 2035 | USD | CDI+1.9% | 1,336,440 | - | 63,605 | - |
| Total | 35,227,020 | 38,427,171 | 14,297,099 | 12,952,068 |
b) Opening profit and loss accounts
| Bank | Consolidated | |||
|---|---|---|---|---|
| 01/01 to 03/31/2022 **** | 01/01 to 03/31/2021 | 01/01 to 03/31/2022 **** | 01/01 to 03/31/2021 | |
| Time<br> Deposits (1) (2) | (849,831) | 3,957,168 | (572,204) | 4,013,209 |
| Savings<br> Deposits | 1,039,477 | 302,846 | 1,039,477 | 302,846 |
| Interbank<br> Deposits | 65,335 | 28,242 | 91,207 | 31,695 |
| Money<br> Market Funding | 2,569,518 | 1,114,049 | 2,448,504 | 1,085,235 |
| Upgrade<br> and Provisions Interest and Pension Plans and Capitalization | 639 | - | 56,438 | 43,717 |
| Others<br> (3) | (5,577,196) | 10,590,502 | (5,472,326) | 10,618,694 |
| Total | (2,752,058) | 15,992,807 | (2,408,904) | 16,095,396 |
(1) In the Bank and Consolidated, includes the recording of interest in the amount of R$ 193,189 (2021 - R$ 232,342), referring to the issuance of a Tier I and II Eligible Debt Instrument (Note 17).
(2) Includes a detailed description2 (foreign exchange in the amount of R$ 365,486 in the Bank and Consolidated (2021) in the exchange value of R$1,426,532 in the Bank and in the Consolidated).
(3) On March 1, 2022 includes foreign exchange income of R$ 3,207,737 in the Bank and Consolidated (2021 – Exchange expense in the amount of R$ 10,952,661).
17.
Other Financial Liabilities
a. Composition
| Bank | ||
|---|---|---|
| 3/31/2022 | 12/31/2021 | |
| Total | Total | |
| Foreign<br> Exchange Portfolio | 43,684,858 | 57,558,791 |
| Trading<br> and Intermediation of Values | 529,981 | 2,949,826 |
| Debt<br> Instruments Eligible to Compose Capital | 17,874,236 | 19,641,408 |
| Collected<br> Taxes and Other | 3,821,959 | 196,811 |
| Third-Party<br> Funds in Transit | 1,949,305 | 16,890 |
| Receipts<br> and Payments Pending Settlement | 5,069,724 | 5,425,924 |
| Total | 72,930,063 | 85,789,650 |
| Consolidated | ||
| --- | --- | --- |
| 3/31/2022 | 12/31/2021 | |
| Total | Total | |
| Foreign<br> Exchange Portfolio | 43,684,858 | 57,558,791 |
| Trading<br> and Intermediation of Values | 1,272,716 | 4,182,663 |
| Debt<br> Instruments Eligible to Compose Capital | 17,874,236 | 19,641,408 |
| Collected<br> Taxes and Other | 3,865,526 | 248,306 |
| Third-Party<br> Funds in Transit | 1,949,305 | 16,890 |
| Receipts<br> and Payments Pending Settlement | 5,069,724 | 5,425,924 |
| Total | 73,716,365 | 87,073,982 |
b. Debt InstrumentsEligible 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, are as follows:
| Bank/ Consolidated | ||||||
|---|---|---|---|---|---|---|
| 31/03/2022 | 31/12/2021 | |||||
| Debt Instruments Eligible to Compose Capital | Issuance | Maturity | Amount (Million) | Interest Rate (p.a.) (1) | Total | Total |
| Notes -<br> Level I (1) | sem prazo | |||||
| nov-18 | (perpétuo) | $1,250 | 7.250% | 6,092,802 | 7,050,080 | |
| Notes -<br> Level II (1) | nov-18 | nov-28 | $1,250 | 6.125% | 6,066,338 | 7,038,527 |
| Financial<br> Bills - Level II (2) | nov-21 | nov-31 | $5,300 | CDI+2% | 5,500,100 | 5,351,046 |
| Financial<br> Bills - Level II (2) | dec-21 | dec-31 | $200 | CDI+2% | 214,996 | 201,755 |
| Total | 17,874,236 | 19,641,408 | ||||
| --- | --- | --- |
(1) The issues were carried out through the Cayman Branch and there is no Income Tax at source, and interest is paid semiannually, as of May 8, 2019.
(2) Letras Financeiras issued in November 2021 have a redemption and repurchase option.
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 | |||
|---|---|---|---|---|
| 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | |
| Provision<br> Technical for Capitalization Operations | - | - | 3,922,711 | 3,747,397 |
| Payables<br> for Credit Cards | 39,027,318 | 40,390,304 | 39,285,538 | 40,674,867 |
| Provision<br> for Tax Risks and Legal Obligations (Note 19.b) | 4,492,502 | 4,312,234 | 6,960,296 | 6,748,684 |
| Provision<br> for Legal and Administrative Proceedings - <br> Labor and Civil (Note 19.b) | 5,093,848 | 5,033,675 | 5,396,324 | 5,325,716 |
| Provision<br> for Financial Guarantees | 303,752 | 324,728 | 303,752 | 324,728 |
| Employee<br> Benefit Plans | 2,416,629 | 2,699,902 | 2,436,807 | 2,728,125 |
| Payables<br> for Acquisition of Assets and Rights | 22,346 | 22,307 | 22,346 | 22,307 |
| Reserve<br> for Legal and Administrative Proceedings - Responsibility of <br> Former Controllers<br> Stockholders (Note 19.f) | 496 | 496 | 496 | 496 |
| Accrued<br> Liabilities | ||||
| Personnel<br> Expenses | 1,268,185 | 1,794,489 | 1,514,981 | 2,077,434 |
| Administrative<br> Expenses | 219,020 | 254,802 | 336,186 | 393,089 |
| Others<br> Payments | 54,037 | 84,847 | 704,384 | 223,968 |
| Creditors<br> for Unreleased Funds | 948,131 | 1,485,921 | 948,131 | 1,485,921 |
| Provision<br> of Payment Services | 581,319 | 619,570 | 581,319 | 619,570 |
| Suppliers | 842,869 | 777,377 | 1,317,342 | 1,318,328 |
| Social<br> and Statutory | 326,255 | 1,149,828 | 347,582 | 1,468,031 |
| Others<br> (1) | 6,628,801 | 6,568,755 | 12,851,374 | 12,778,291 |
| Total | 62,225,508 | 65,519,235 | 76,929,569 | 79,936,952 |
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 | ||||
|---|---|---|---|---|
| 03/31/2022 | 12/31/2021 | |||
| Type of Financial Guarantee | Balance Guarantees Provided | Provision | Balance Guarantees Provided | Provision |
| Linked<br> to International Merchandise Trade | 3,048,770 | 23,510 | 6,244,755 | 28,506 |
| Linked<br> to Bids, Auctions, Provision of Services or Execution of Works | 6,136,788 | 3,921 | 6,796,175 | 4,198 |
| Linked<br> to the Supply of Goods | 1,419,448 | 1,985 | 1,698,518 | 2,442 |
| Linked<br> to the Distribution of Securities by Public Offer | 325,000 | - | - | - |
| Guarantee<br> in Legal and Administrative Proceedings of Fiscal Nature | 11,803,523 | 226,368 | 11,823,964 | 243,235 |
| Other<br> Guarantees | 2,098,845 | 1,611 | 2,748,497 | 1,897 |
| Other<br> Bank Guarantees | 19,191,300 | 38,506 | 19,525,773 | 36,489 |
| Other<br> Financial Guarantees | 113,616 | 7,850 | 88,388 | 7,960 |
| Total | 44,137,290 | 303,751 | 48,926,070 | 324,727 |
Changes inAllowances for Financial Guarantees
| **** | Bank/Consolidated | |
|---|---|---|
| 01/01 to<br><br>03/31/2022 | 01/01 a<br><br>31/03/2021 | |
| Balance at Beginning | 324,728 | 255,179 |
| Constitution | 2,015 | 77,250 |
| --- | --- | --- |
| Reversal<br> (1) | (22,992) | (3,628) |
| Balance at End | 303,751 | 328,801 |
(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 March 31, 2022 and December 31, 2021, no contingent assets were recognized.
b) Balance Sheet of Provisions forJudicial and Administrative Proceedings and Legal Obligations by Nature
| Bank | Consolidated | |||
|---|---|---|---|---|
| 3/31/2022 | 12/31/2021 | 3/31/2022 | 12/31/2021 | |
| Reserve for Tax Contingencies and Legal Obligations (Note 18) | 4,492,502 | 4,312,234 | 6,960,296 | 6,748,684 |
| Accrual for Legal and Administrative Proceedings - Labor and Civil (Note 18) | 5,093,848 | 5,033,675 | 5,396,324 | 5,325,716 |
| Labor | 1,920,058 | 1,941,169 | 2,065,391 | 2,084,247 |
| Civil | 3,173,790 | 3,092,507 | 3,330,933 | 3,241,469 |
| Total | 9,586,350 | 9,345,909 | 12,356,620 | 12,074,400 |
c) Change in Accrual for Judicial andAdministrative Proceedings and Legal Obligations
| Bank | ||||||
|---|---|---|---|---|---|---|
| 01/01 to 03/31/2022 | 01/01 to <br>03/31/2021 | |||||
| Tax | Labor | Civil | Tax | Labor | Civil | |
| Balance at Beginning | 4,312,234 | 1,941,169 | 3,092,507 | 4,249,744 | 2,656,098 | 3,265,784 |
| Recognition<br> Net of Reversal (1) | 161,919 | 201,608 | 124,828 | 20,081 | 331,420 | 128,943 |
| Inflation<br> Adjustment | 46,521 | 27,987 | 116,908 | 19,202 | 20,597 | 92,480 |
| Write-offs<br> Due to Payment | (28,172) | (250,706) | (160,453) | (89,431) | (474,981) | (643,611) |
| Balance at End | 4,492,502 | 1,920,058 | 3,173,790 | 4,199,596 | 2,533,135 | 2,843,596 |
| Escrow<br> Deposits - Other Receivables | 1,387,194 | 695,596 | 694,924 | 1,297,291 | 710,788 | 684,330 |
| Escrow<br> Deposits - Securities | 3,276 | 3,941 | 1,376 | 4,559 | 3,210 | 831 |
| Total Escrow Deposits (2) | 1,390,470 | 699,537 | 696,300 | 1,301,850 | 713,998 | 685,161 |
| Consolidated | ||||||
| 01/01 to 03/31/2022 | 01/01 to <br>03/31/2021 | |||||
| Tax | Labor | Civil | Tax | Labor | Civil | |
| Balance at Beginning | 6,748,684 | 2,084,247 | 3,241,469 | 6,707,293 | 2,900,835 | 3,441,445 |
| Recognition<br> Net of Reversal (1) | 170,080 | 218,533 | 167,468 | 20,721 | 342,381 | 157,176 |
| Inflation<br> Adjustment | 76,869 | 28,467 | 118,063 | 26,677 | 22,817 | 93,527 |
| Write-offs<br> Due to Payment | (35,337) | (265,856) | (196,067) | (100,226) | (540,939) | (685,710) |
| Balance at End | 6,960,296 | 2,065,391 | 3,330,933 | 6,654,465 | 2,725,094 | 3,006,438 |
| Escrow<br> Deposits - Other Receivables | 2,662,600 | 739,244 | 703,388 | 2,575,020 | 761,798 | 696,738 |
| Escrow<br> Deposits - Securities | 4,309 | 3,941 | 1,376 | 5,476 | 3,210 | 831 |
| Total Escrow Deposits (2) | 2,666,909 | 743,185 | 704,764 | 2,580,496 | 765,008 | 697,569 |
(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 andCivil 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:
e) Lawsuits and AdministrativeProceedings related to Tax and Social Security
Main lawsuits and administrative proceedings related to legalobligations, tax and social security
PIS and COFINS – R$ 1,997,092 in the Bank and R$ 4,139,904 in the Consolidated (12/31/2021 - R$ 1,973,373 in the Bank and R$ 4,090,025 in the Consolidated): Banco Santander and the subsidiaries filed legal measures to avoid the application of the Law No. 9,718/1998, which modified the PIS and COFINS calculation basis so that they were levied on all revenues of legal entities 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 was published by the Federal Supreme Court (STF) admitting the Extraordinary Appeal filed by the Federal Government regarding PIS and denying the follow-up to the Extraordinary Appeal of the Federal Public Ministry regarding COFINS. Both appealed against this decision, without any success, so that the claim referring to COFINS is defined, prevailing the judgment of the Federal Regional Court of the 4th Region of August 2007, favorable to Banco Santander. The payment of the PIS of Banco Santander, as well as the enforceability of the PIS and COFINS of the other subsidiaries, are still pending final judgment by the STF.
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) inCustomer Operations - R$959,178 (12/31/2021 - R$945,715) in the Bank and Consolidated: in May 2003, the Brazilian Federal Revenue Service issued a tax assessment notice against Santander Distribuidora de Títulos e Valores Mobiliários Ltda. (Santander DTVM) and another auto in Banco Santander (Brasil) S.A. The subject of the case was the collection of CPMF on operations carried out by Santander DTVM in the management of its customers' funds and clearing services provided by the Bank to Santander DTVM, which took place during the years 2000, 2001 and 2002. 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 cancel both tax debts. The aforementioned action had the judgment and ruling unfounded, 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 set up to cover the loss considered probable in the lawsuit.
NationalInstitute of Social Security (INSS) - R$128,710 in the Bank and R$132,554 in the Consolidated (12/31/2021 - R$53,936 in the Bank and R$53,936 in the Consolidated): Banco Santander and its subsidiaries are administratively and judicially discussing the collection of the social security contribution and education allowance on various funds that, according to the assessment of the legal advisors, do not have a salary nature.
Tax onServices (ISS) - Financial Institutions - R$237,588 in the Bank and R$265,454 in the Consolidated (12/31/2021 - R$256,770 in the Bank and R$283,528 in the Consolidated): Banco Santander and its subsidiaries are administratively and judicially discussing the requirement, by several municipalities, of the payment of ISS on several revenues arising from operations that are not usually classified as provision of services. In addition, other lawsuits involving ISS, classified as a possible risk of loss, are described in note 20.h.
f) Legal andAdministrative 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.
g) 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 through an amendment, with the inclusion of actions that only involve the discussion of the Collor I Plan. This extension has a term of 5 years and the ratification of the terms of the amendment took place on 03 of June 2020.
Management considers that the provisions made are sufficient to cover the risks involved with the economic plans, considering the approved agreement.
h) Tax and Social Security, Labor and Civil Contingent LiabilitiesClassified 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$29,999 million in the Consolidated, with the main lawsuits being as follows:
INSS on Profit Sharing (PLR) - the Bank and the subsidiaries are involved in legal and administrative proceedings arising from questioning by the tax authorities, regarding the collection of social security contribution on payments made as profit sharing. As of March 31, 2022, the amount was approximately R$7,436 million.
Tax on Services (ISS) - Financial Institutions - Banco Santander and its subsidiaries are administratively and judicially discussing the requirement, by several municipalities, of payment of ISS on various income arising from operations that are not usually classified as provision of services. As of March 31, 2022, the amount was approximately R$4,347 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 March 31, 2022, the amount was approximately R$5,397 million.
Amortization of Banco Real's Goodwill - the Brazilian Federal Revenue Service issued a tax assessment notice against the Bank to demand payments of IRPJ and CSLL, including late payment charges, referring to the base period of 2009. The Tax Authorities considered that the goodwill related to the acquisition of Banco Real, amortized in the accounting prior to its incorporation, could not be deducted by Banco Santander for tax purposes. The tax assessment notice was duly challenged and we are currently awaiting judgment before CARF. As of March 31, 2022, the amount was approximately R$1,483 million.
Losses on Credit Operations - the Bank and the subsidiaries contested the tax assessments issued by the Federal Revenue Service of Brazil, alleging the improper deduction of losses on credit operations from the IRPJ and CSLL calculation bases for allegedly not meeting the requirements of applicable laws. As of March 31, 2022, the amount was approximately R$1,328 million.
Use of CSLL Tax Loss and Negative Basis– Tax assessment notices issued by the Brazilian Federal Revenue Service in 2009 for alleged undue offsetting of tax losses and negative basis of CSLL, as a result of tax assessments issued in previous periods. Judgment at the administrative level is awaited. As of March 31, 2022, the amount was approximately R$1,105 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 in the acquisition of Banco Sudameris, referring to the base period from 2007 to 2012. Banco Santander presented the respective administrative defenses, which were judged unfavorably. Currently, the lawsuits are awaiting judgment at CARF. As of March 31, 2022, the amount was approximately R$667 million.
IRPJ and CSLL - Capital Gain - the Brazilian Internal Revenue Service issued a tax assessment notice against Santander Seguros (legal successor of ABN AMRO Brasil Dois Participações S.A. (AAB Dois Par) charging income tax and social contribution related to the 2005 fiscal year. alleges that the capital gain on the sale of shares of Real Seguros S.A. and Real Vida e Previdência S.A by AAB Dois Par should be taxed at a rate of 34.0% instead of 15.0%. based on the understanding that the tax treatment adopted in the transaction was in compliance 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. lawsuit awaits judgment. Banco Santander is responsible for any adverse outcome in this proceeding as the former parent of Zurich Santander Brasil Seguros and Pension S.A. As of March 31, 2022, the amount was approximately R$501 million.
Labor claims classified as possible loss totaled R$189 million in the Consolidated, excluding the lawsuit below:
Readjustment of the Pension Supplements of Banesprev by the IGPDI – lawsuit 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 retirement supplement by the IGPDI for Banespa retirees who were admitted until May 22, 1975. The sentence granted the correction, but only in periods in which no other form of readjustment 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, considering that there is no list of representatives duly approved in the case file.
Liabilities related to civil lawsuits with a possible risk of loss totaled R$2,420 million in the Consolidated, with the main proceedings:
Indemnification Action Coming from Banco Bandepe - related to the loan agreement. After the appeal filed by the Bank with the Superior Court of Justice was granted, the party began a new settlement of the judgment.
Indemnity Action Regarding Custody Services - provided by Banco Santander in the initial phase and still without a sentence.i) Other Legal Actions for the Liability of Former Controllers.
i) Other Legal Actions for the Responsibility of Former Controllers
Refers to tax, labor and civil lawsuits, in the amounts of R$0, R$0 and R$496 (12/31/2021 – R$0, R$0 and R$496) in the Bank and Consolidated, respectively, recorded in other liabilities (Note 18) of responsibility of former controlling shareholders of acquired banks and companies. Based on the agreements signed, these lawsuits have guarantees of full reimbursement by the former controlling shareholders, whose respective rights were recorded in other assets (Note 11).
20.
Stockholders’ Equity
a) Capital
According to the Bylaws, Banco Santander's capital stock may be increased up to the limit of the authorized capital, regardless of statutory amendment, upon resolution of the Board of Directors and through the issuance of up to 9,090,909,090 (nine billion, ninety million , nine hundred and nine thousand and ninety) shares, subject to the legal limits established for the number of preferred shares. Any capital increase that exceeds this limit will require shareholder approval.
At the Extraordinary General Meeting held on March 31, 2021, it was approved in the context of the partial spin-off of Santander Brasil, which resulted in the segregation of the shares owned by it issued by Getnet Adquirência e Serviços para Meios de Pagamentos S.A. (“Getnet”), with the transfer of the spun-off portion to Getnet, the reduction of the capital stock of Santander Brasil in the total amount of R$ 2,000,000 (two billion reais), without the cancellation of shares, with the capital of the Santander Brasil from R$ 57,000,000 (fifty-seven billion reais) to R$ 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 | ||||||
|---|---|---|---|---|---|---|
| 03/31/2022 | 12/31/2021 | |||||
| Common | Preferred | Total | Common | Preferred | Total | |
| Brazilian<br> Residents | 97,662 | 123,228 | 220,890 | 109,718 | 135,345 | 245,063 |
| Foreign Residents | 3,721,033 | 3,556,608 | 7,277,641 | 3,708,977 | 3,544,491 | 7,253,468 |
| Total | 3,818,695 | 3,679,836 | 7,498,531 | 3,818,695 | 3,679,836 | 7,498,531 |
| (-)<br> Treasury Shares | (19,580) | (19,580) | (39,160) | (15,755) | (15,755) | (31,510) |
| Total Outstanding | 3,799,115 | 3,660,256 | 7,459,371 | 3,802,940 | 3,664,081 | 7,467,021 |
b) Dividendsand Interest on Capital
By statute, shareholders are guaranteed minimum dividends 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 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 the event of the Bank's dissolution.
Dividends were calculated and paid in accordance with Brazilian Corporate Law.
Before the Annual Shareholders' Meeting, the Board of Directors may resolve 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 amount of 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.
We present the distribution of dividends and Interest on Equity made on March 31, 2022 and December 31, 2021.
| 03/31/2022 | |||||||
|---|---|---|---|---|---|---|---|
| In Thousands | Brazilian Real per Thousand Shares/Units | ||||||
| of Brazilian Real | Gross | Net | |||||
| Common | Preferred | Unit | Common | Preferred | Unit | ||
| Dividends(1)(2) | 1,300,000 | 165.9531 | 182.5484 | 348.5016 | 165.9531 | 182.5484 | 348.5016 |
| Interest<br> on Capital (1)(3) | 1,700,000 | 217.0156 | 238.7172 | 455.7329 | 184.4633 | 202.9096 | 387.3730 |
| Total | 3,000,000 |
(1) Deliberated by the Board of Directors on February 1, 2022, paid on March 4, 2022, without any monetary restatement.
(2) They were fully attributed to the mandatory minimum dividends distributed by the Bank for the year 2021.
(3) They were fully attributed to the mandatory minimum dividends distributed by the Bank for the year 2022.
| 12/31/2021 | |||||||
|---|---|---|---|---|---|---|---|
| In Thousands | Brazilian Real per Thousand Shares/Units | ||||||
| of Brazilian Real | Gross | Net | |||||
| Common | Preferred | Unit | Common | Preferred | Unit | ||
| Dividends<br> (1)(5) | 3,000,000 | 382.9809 | 421.2789 | 804.2597 | 382.9809 | 421.2789 | 804.2597 |
| Interest<br> on Capital (2)(5) | 3,400,000 | 434.0449 | 477.4494 | 911.4944 | 368.9382 | 405.8320 | 774.7702 |
| Dividends<br> (3)(5) | 3,000,000 | 382.9809 | 421.2789 | 804.2597 | 382.9809 | 421.2789 | 804.2597 |
| Interest<br> on Capital (4)(5) | 249,000 | 31.7868 | 34.9655 | 66.7524 | 27.0188 | 29.7207 | 56.7395 |
| Total | 9,649,000 |
(1) Deliberated by the Board of Directors on April 27, 2021, paid on June 2, 2021, without any monetary restatement.
(2) Resolved by the Board of Directors on July 27, 2021, paid on September 3, 2021, without any monetary restatement.
(3) Resolved by the Board of Directors on October 26, 2021, paid on December 3, 2021, without any monetary restatement.
(4) Deliberated by the Board of Directors on December 28, 2021, paid on February 3, 2022, without any monetary restatement.
(5) They were fully allocated to the mandatory minimum dividends to be distributed by the Bank for the year 2021.
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 EqualizationReserve
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) TreasuryShares
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 | ||
| 03/31/2022 | 12/31/2021 | |
| Quantity | Quantity | |
| Units | Units | |
| Treasury Shares at Beginning of the Period | 15,755 | 18,829 |
| Shares Acquisitions | 8,393 | 91 |
| Payment -<br> Share-Based Compensation | (4,568) | (3,165) |
| Treasury Shares at Beginning of the Period | 19,580 | 15,755 |
| Subtotal<br> - Treasury Shares in Thousands of Reais | 860,004 | 711,268 |
| Issuance<br> Cost in Thousands of Reais | 1,771 | 1,771 |
| Balance of Treasury Shares in Thousands of Reais | 861,775 | 713,039 |
| Cost/Share Price | Units | Units |
| Minimum<br> Cost (*) | 7.55 | 7.55 |
| Weighted<br> Average Cost (*) | 34.11 | 33.86 |
| Maximum<br> Cost (*) | 49.55 | 49.55 |
| Share<br> Price | 36.88 | 29.98 |
(*) Considering since the beginning of operations on the stock exchange.
e) Minority Interest
| Stockholders’ Equity | Non Controlling Interest | |||
|---|---|---|---|---|
| 03/31/2022 | 12/31/2021 | 01/01 to 03/31/2022 | 01/01 to 03/31/2021 | |
| Banco RCI<br> Brasil S.A. | 931,437 | 916,393 | 18,989 | 16,486 |
| Banco<br> Hyundai Capital Brasil S.A. | 193,534 | 177,880 | 15,776 | 5,222 |
| Banco PSA | 131,183 | 129,975 | 1,208 | 3,678 |
| Rojo<br> Entretenimento S.A. | 6,972 | 6,939 | 33 | (84) |
| GIRA | 6,245 | 3,109 | 1,521 | (44) |
| --- | --- | --- | --- | --- |
| TORO<br> Corretora | 58,096 | 22,948 | (1,035) | - |
| Toro<br> Investimento | 4,249 | - | 222 | - |
| Solution | 2,487 | - | (187) | - |
| Total | 1,334,203 | 1,257,244 | 36,527 | 25,258 |
21.
Related Parties
a) Remuneration of Key ManagementPersonnel
The Bank's Board of Directors' Meeting held on March 25, 2022 approved, in accordance with the favorable recommendation of the Remuneration Committee, the proposal for the maximum global remuneration for Managers (Board of Directors and Executive Board) for the year 2022, in the amount of up to R$504,550 (Five hundred and four thousand, five hundred and fifty thousand reais), covering fixed, variable and share-based compensation and other benefits. The proposal was subject to deliberation at the Annual General Meeting (AGO) held on April 29, 2022.
a.1) LongTerm 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) ShortTerm 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 March 31, 2022 and 2021, 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.
| 01/01 to 03/31/2022 | 01/01 to <br>03/31/2021 | |
|---|---|---|
| Fixed Compensation | 26,832 | 22,498 |
| Variable<br> Compensation - in cash | 65,760 | 44,062 |
| Variable<br> Compensation - in shares | 55,762 | 45,338 |
| Others | 11,616 | 12,460 |
| Total Short-Term Benefits | 159,970 | 124,359 |
| Variable<br> Compensation - in cash | 73,041 | 62,310 |
| Variable<br> Compensation - in shares | 74,546 | 64,488 |
| Total Long-Term Benefits | 147,587 | 126,799 |
| Total | 307,557 | 251,158 |
Additionally, in 2022, charges were paid on Management compensation in the amount of R$7,674 (2021 - R$7,932).
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) CreditOperations
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) OwnershipInterest
The table below shows the direct interest (common and preferred shares):
| Shares in Thousands | ||||||
|---|---|---|---|---|---|---|
| 03/31/2022 | ||||||
| Stockholders | Common Shares | Common Shares (%) | Preferred Shares | Preferred Shares (%) | Total Shares | Total Shares (%) |
| Sterrebeeck<br> B.V. (1) | 1,809,583 | 47.4% | 1,733,644 | 47.1% | 3,543,227 | 47.3% |
| Grupo<br> Empresarial Santander, S.L. (GES) (1) | 1,627,891 | 42.6% | 1,539,863 | 41.9% | 3,167,754 | 42.2% |
| Banco<br> Santander, S.A. (1) | 2,696 | 0.1% | - | 0.0% | 2,696 | 0.0% |
| Directors<br> (*) | 5,639 | 0.2% | 5,744 | 0.2% | 11,383 | 0.2% |
| Others | 353,306 | 9.3% | 381,005 | 10.4% | 734,312 | 9.8% |
| Total Outstanding | 3,799,115 | 99.5% | 3,660,256 | 99.5% | 7,459,371 | 99.5% |
| Treasury<br> Shares | 19,580 | 0.5% | 19,580 | 0.5% | 39,160 | 0.5% |
| Total | 3,818,695 | 100.0% | 3,679,836 | 100.0% | 7,498,531 | 100.0% |
| Free<br> Float (2) | 353,306 | 9.3% | 381,006 | 10.4% | 734,312 | 9.8% |
| Shares in Thousands | ||||||
| 12/31/2021 | ||||||
| Stockholders | Common Shares | Common Shares (%) | Preferred Shares | Preferred Shares (%) | Total Shares | Total Shares (%) |
| Sterrebeeck<br> 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 | 41.9% | 3,167,754 | 42.2% |
| Banco<br> Santander, S.A. (1) | 2,696 | 0.1% | - | 0.0% | 2,696 | 0.0% |
| Directors<br> (*) | 4,939 | 0.1% | 5,029 | 0.1% | 9,968 | 0.1% |
| Others | 357,831 | 9.4% | 385,545 | 10.5% | 743,376 | 9.9% |
| Total Outstanding | 3,802,940 | 99.6% | 3,664,081 | 99.6% | 7,467,021 | 99.6% |
| Treasury<br> Shares | 15,755 | 0.4% | 15,755 | 0.4% | 31,510 | 0.4% |
| Total | 3,818,695 | 100.0% | 3,679,836 | 100.0% | 7,498,531 | 100.0% |
| Free<br> Float (2) | 357,830 | 9.4% | 385,544 | 10.5% | 743,374 | 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) RelatedParty 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) | |
| 3/31/2022 | 01/01 to 3/31/2022 | 12/31/2021 | 01/01 to 3/31/2021 | 3/31/2022 | 01/01 to 3/31/2022 | 12/31/2021 | 01/01 to 3/31/2021 | |
| Cash | 1,169,631 | - | 10,211,868 | - | 1,156,528 | - | 10,211,868 | - |
| Banco<br> Santander Espanha (1) | 1,072,084 | - | 1,479,611 | - | 1,072,084 | - | 1,479,611 | - |
| Santander<br> Bank, National Association | - | - | 8,538,165 | - | - | - | 8,538,165 | - |
| Others | 97,547 | - | 194,092 | - | 84,444 | - | 194,092 | - |
| Interbank Investments | 91,215,475 | 1,668,279 | 85,460,227 | 785,057 | 10,896,940 | 543 | - | 704 |
| Aymoré<br> CFI (2) | 53,567,735 | 998,684 | 54,209,834 | 592,288 | - | - | - | - |
| Banco<br> Santander Espanha (1) | 10,896,940 | 543 | - | 704 | 10,896,940 | 543 | - | 704 |
| Banco PSA | 919,702 | 10,549 | 1,070,932 | 12,931 | - | - | - | - |
| Banco RCI<br> Brasil S.A. (2) | 2,609,139 | 63,064 | 2,761,443 | 36,515 | - | - | - | - |
| Santander<br> Leasing (2) | 305,786 | 7,238 | 298,548 | 111,109 | - | - | - | - |
| Bandepe<br> (2) | 18,739,647 | 508,519 | 23,372,820 | 31,510 | - | - | - | - |
| Others | 4,176,526 | 79,682 | 3,746,650 | 17,315 | - | - | - | - |
| Securities | 1,237,480 | 35,536 | 1,277,596 | 1,509 | 901,928 | 27,627 | 955,737 | 15,806 |
| Santander<br> Leasing (2) | 334,111 | 7,909 | 320,303 | 15,806 | - | - | - | - |
| Apolo<br> Fundo de Investimento em Direitos Creditórios | 901,928 | 27,627 | 955,737 | - | 901,928 | 27,627 | 955,737 | 15,806 |
| Verbena<br> FCVS - Fundo de Investimento em Direitos Creditórios | 1,441 | - | 1,556 | 48,050,372 | - | - | - | 15,806 |
| Derivatives Financial Instruments - Net | 9,703,453 | 8,460,340 | (3,435,295) | 48,050,372 | 2,791,282 | 4,720,924 | (2,777,638) | 48,009,711 |
| Fundo de Investimento<br> Santillana (3) | 121,278 | 108,583 | 107,223 | (34,935) | 121,278 | 108,583 | 107,223 | (34,935) |
| Banco<br> Santander Espanha (1) | 2,670,004 | 4,612,336 | (511,355) | 48,044,547 | 2,670,004 | 4,612,336 | (2,884,861) | 48,044,547 |
| Santander<br> FI Amazonas (2) | 338,271 | 111,987 | 258,895 | 147,941 | - | - | - | - |
| Santander<br> FI Hedge Strategies (2) <br> (Nota 2) | 699,163 | 2,525,779 | 863,582 | 471,157 | - | - | - | - |
| Santander<br> Hermes Multi Créd Priv Infra Fundo de Investimentos | 74,919 | 14,679 | 55,266 | (14,587) | - | - | - | - |
| Santander<br> FI Diamantina (2) | 5,799,818 | 1,086,942 | (4,184,728) | (563,751) | - | - | - | - |
| Key<br> Management Personnel | - | 5 | - | - | - | 5 | - | 99 |
| Others | - | - | - | - | - | - | - | - |
| Interfinancial Relations | 19,840,448 | 97 | 18,859,193 | 1,589 | 19,819,069 | - | 18,857,386 | 969 |
| Getnet<br> S.A. (5) | 19,819,069 | - | 18,857,386 | 969 | 19,819,069 | - | 18,857,386 | 969 |
| Santander<br> Leasing (2) | 21,379 | 97 | 1,807 | 620 | - | - | - | - |
| Loan Operations | 1,768,296 | 584 | 3,250,610 | 434 | 1,765,611 | 584 | 3,548,366 | 434 |
| Getnet<br> S.A. | 1,663,374 | - | 3,450,923 | - | 1,663,374 | - | 3,450,923 | - |
| Gestora<br> de Inteligência de Crédito | 69,527 | - | 67,511 | - | 69,527 | - | 67,511 | - |
| Loop<br> Gestão de Pátios S.A. | 9,499 | - | 9,861 | - | 9,499 | - | 9,861 | - |
| Gestão<br> Integrada de Recebíveis do Agronegócio S.A. | - | - | (276,749) | - | - | - | - | - |
| Key<br> Management Personnel | 22,800 | 584 | - | 434 | 23,173 | 584 | 20,033 | 434 |
| Dividends and Bonuses Receivables | 293,497 | - | 293,413 | - | 29,862 | - | 21,811 | - |
| Aymoré<br> CFI (2) | 249,285 | - | 249,285 | - | - | - | - | - |
| Santander<br> CCVM (2) | 4,846 | - | 4,846 | - | - | - | - | - |
| Santander<br> Brasil Tecnologia S.A. (2) | - | - | 3,772 | - | - | - | - | - |
| Santander<br> Leasing (2) | 21,235 | - | 21,235 | - | - | - | - | - |
| Santander<br> Corretora de Seguros (2) | 9,964 | - | 9,964 | - | - | - | - | - |
| Webmotors<br> S.A | - | - | - | - | 21,763 | - | 21,763 | - |
| F1rst<br> Tecnologia e Inovação Ltda. | 3,772 | - | - | - | - | - | - | - |
| TecBan | - | - | - | - | 8,051 | - | - | - |
| Others | 4,395 | - | 4,311 | - | 48 | - | 48 | - |
| Trading Account | 376,001 | 391 | 531,612 | 426 | 376,001 | 391 | 531,612 | 426 |
| Banco<br> Santander Espanha (1) | 376,001 | 391 | 531,612 | 426 | 376,001 | 391 | 531,612 | 426 |
| Foreign Exchange Portfolio - Net | 382,090 | (280,959) | (159,043) | (116,205) | 382,090 | (280,959) | (159,043) | (116,205) |
| Banco<br> Santander Espanha (1) | 382,090 | (281,106) | (159,043) | (116,260) | 382,090 | (281,106) | (159,043) | (116,260) |
| Key<br> Management Personnel | - | 147 | - | 55 | - | 147 | - | 55 |
| Income Receivable | 1,022,933 | 383,312 | - | 461,003 | 944,599 | 664,954 | - | 727,118 |
| Zurich<br> Santander Brasil Seguros e Previdência S.A. (6) | 938,165 | 383,311 | - | 400,556 | 944,599 | 664,953 | - | 666,671 |
| Zurich<br> Santander Brasil Seguros S.A. (6) | 84,768 | - | - | 60,447 | - | - | - | 60,447 |
| Receivables from Affiliates | 27,959 | 222,003 | 27,068 | 142,701 | 5,699 | 61,729 | 5,894 | 4,389 |
| Santander<br> Capitalização S.A. (2) | - | 18 | - | - | - | - | - | - |
| Aymoré<br> CFI (2) | - | 110,611 | - | 85,823 | - | - | - | - |
| Santander<br> FI Diamantina (2) | - | 3,403 | - | 9,595 | - | - | - | - |
| Santander<br> Brasil Gestão de Recursos Ltda. (3) | 169 | 1,012 | 169 | 1,058 | 169 | 1,012 | 169 | 1,058 |
| Super<br> Pagamentos e Administração de Meios Eletrônicos S.A. | - | 227 | - | - | - | 708 | 191 | - |
| Santander<br> Brasil Tecnologia S.A. (3) | - | - | - | 244 | - | - | - | - |
| Santander<br> CCVM (2) | - | 19,845 | - | 17,348 | - | - | - | - |
| Gesban<br> Servicios Administrativos Globales, S.L | - | - | - | - | 23 | - | 23 | - |
| Santander<br> Brasil Consórcio | 1,390 | 8,828 | 872 | 9,066 | - | - | - | - |
| Santander<br> Corretora de Seguros (2) | - | 10,876 | - | 8,400 | - | - | - | - |
| Esfera<br> Fidelidade S.A. | 2,753 | 1,057 | 2,109 | 770 | - | - | - | - |
| Banco<br> Santander Espanha (1) | 4,516 | - | 4,516 | - | 4,516 | - | 4,516 | - |
| Santander<br> FI Hedge Strategies (2) | 15,182 | 1,954 | 15,474 | 1,710 | - | - | - | - |
| Getnet<br> S.A. (5) | 316 | 30,383 | 320 | 2,002 | 651 | 56,313 | 655 | 2,002 |
| Santander<br> Caceis Brasil DTVM S.A.(3) | - | 3,403 | - | 974 | - | - | - | 974 |
| Others | - | 1,014 | - | - | - | 1,014 | - | - |
| Other Assets - Others | 430,900 | 27,646 | 2,973,160 | 29,690 | 423,181 | 30,040 | 2,886,739 | 119,452 |
| Banco<br> Santander Espanha (1) | 254,810 | - | 1,923,587 | - | 254,874 | - | 1,923,657 | - |
| Santander<br> Capitalização S.A. (2) | 6,212 | 18,698 | 5,264 | 17,326 | - | - | - | - |
| Banco<br> Santander International (3) | - | 9,116 | - | 11,496 | - | 9,116 | - | 11,496 |
| Santander<br> Caceis Brasil DTVM S.A.(3) | - | 394 | - | 375 | - | 394 | - | 375 |
| Santander<br> Brasil Gestão de Recursos Ltda. (3) | - | - | - | - | - | - | - | - |
| Santander<br> Global Thechnology, S.L., SOCI | 168,045 | - | - | - | 168,045 | - | - | - |
| Key<br> Management Personnel | 8 | 109 | 1 | 71 | 8 | 109 | 1 | 71 |
| Others | 1,825 | (671) | 1,044,308 | 422 | 254 | 20,421 | 963,081 | 107,510 |
| Deposits | (25,537,121) | (317,179) | (28,958,024) | 45,321 | (2,968,243) | (23,740) | (1,535,726) | (3,594) |
| Bandepe | (23) | - | 561 | - | - | - | - | - |
| Santander<br> Leasing (2) | (179,882) | (3,574) | (58,271) | (293) | - | - | - | - |
| Banco<br> Santander Espanha (1) | (1,843,834) | - | (10,995) | - | (1,834,666) | - | (10,995) | - |
| Aymoré<br> CFI (2) | (998,527) | (20,347) | (1,376,716) | (2,601) | - | - | - | - |
| Zurich<br> Santander Brasil Seguros e Previdência S.A. (6) | - | - | (63,864) | - | - | - | (63,864) | - |
| Zurich<br> Santander Brasil Seguros S.A. (6) | (2,759) | - | (9,379) | - | - | - | - | - |
| Santander<br> Brasil Gestão de Recursos Ltda. (3) | (50,030) | (1,154) | (44,141) | (2) | (50,030) | (1,154) | (44,141) | (2) |
| Fundo de<br> Investimento Santillana (3) | (3) | - | (15) | - | (3) | - | (15) | - |
| Santander<br> Brasil Tecnologia S.A. (2) | - | - | (86) | - | - | - | - | - |
| Banco RCI<br> Brasil S.A. (2) | (123,492) | (3,559) | (31,934) | (1,343) | - | - | - | - |
| Santander<br> Caceis Brasil DTVM S.A.(3) | (646,500) | (16,027) | (722,783) | (3,012) | (646,500) | (16,027) | (722,783) | (3,012) |
| Getnet<br> S.A. | (57,327) | - | (372,151) | - | (57,327) | - | (372,151) | - |
| Santander<br> FI Diamantina (2) | (21,064,744) | (264,967) | (25,670,214) | 54,299 | - | - | - | - |
| Super<br> Pagamentos e Administração de Meios Eletrônicos S.A. | (7,713) | - | (21,725) | - | (7,713) | - | (21,725) | - |
| Banco<br> Santander (Suisse), S.A. | - | - | - | - | - | - | - | - |
| Key<br> Management Personnel | (36,393) | (742) | (28,409) | (181) | (36,393) | (742) | (28,672) | (181) |
| Others | (516,835) | (6,767) | (540,962) | (1,546) | (335,611) | (5,817) | (271,380) | (399) |
| Repurchase Commitments | (6,309,391) | (178,793) | (7,262,118) | (47,756) | (1,487,270) | (58,209) | (1,003,908) | (8,934) |
| Santander<br> FI Amazonas (3) | (482,465) | (9,520) | (313,848) | (2,852) | - | - | - | - |
| Super<br> Pagamentos e Administração de Meios Eletrônicos S.A. | (205,419) | (3,316) | 241,716 | - | (205,419) | (3,316) | 241,716 | - |
| Santander<br> Leasing (2) | - | - | - | (875) | - | - | - | - |
| Santander<br> CCVM (2) | (274,606) | (6,794) | (277,092) | (925) | - | - | - | - |
| Santander<br> FI SBAC (2) | (1,215,339) | (41,632) | (2,128,150) | (14,267) | - | - | - | - |
| Santander<br> FI Guarujá (2) | (473,820) | (11,151) | (456,680) | (1,805) | - | - | - | - |
| Santander<br> FI Diamantina (2) | (1,101,377) | - | (765,265) | (13,366) | - | - | - | - |
| Santander<br> FI Unix (2) | (57,769) | (1,153) | (26,745) | 21 | - | - | - | - |
| Fundo de<br> Investimento Santillana (3) | (1,282,550) | (54,780) | (2,277,832) | (8,915) | (1,282,550) | (54,780) | (1,241,109) | (8,915) |
| Pessoal<br> Chave da Administração | 699 | (9) | - | (1) | 699 | (9) | - | (1) |
| Others | (1,216,745) | (50,438) | (1,258,222) | (4,771) | - | (104) | (4,515) | (18) |
| Funds from Acceptance and Issuance of Securities | 172,694 | (3,206) | 128,214 | (1,097) | 172,694 | (3,206) | 128,593 | (1,097) |
| Key<br> Management Personnel | 172,694 | (3,206) | 128,214 | (1,097) | 172,694 | (3,206) | 128,593 | (1,097) |
| Loan and Onlendings | (41,315,236) | (16,616) | 4,870,966 | (14,536) | (10,908,972) | (16,693) | (18,247,450) | (14,536) |
| Banco<br> Santander Espanha (1) | (10,908,972) | (16,616) | (11,167,495) | (14,536) | (10,908,972) | (16,693) | (11,167,495) | (14,536) |
| Banco Santander<br> México (4) | - | - | - | - | - | - | - | - |
| Santander<br> FI Hedge Strategies (2) | (3,053,249) | - | (2,356,687) | - | - | - | - | - |
| Santander<br> fundo de Investimento Diamantina Multimercado Crédito Privado Investimento no<br> exterior | (20,929,921) | - | (2,356,687) | - | - | - | - | - |
| Getnet<br> S.A. | (6,423,094) | - | (2,356,687) | - | - | - | - | - |
| Dividends and Bonuses in Paying | - | - | (564,528) | - | - | - | (564,786) | - |
| Banco<br> Santander Espanha (1) | - | - | (73) | - | - | - | (73) | - |
| Sterrebeeck<br> B.V. (2) | - | - | (100,418) | - | - | - | (100,418) | - |
| GES (1)<br> (3) | - | - | (464,295) | - | - | - | (464,295) | - |
| Key<br> Management Personnel | - | - | 258 | - | - | - | - | - |
| Payables from Affiliates | (1,788,472) | (618,339) | (370,541) | (439,603) | (120,579) | (355,824) | (272,941) | (214,504) |
| Santander<br> Brasil Tecnologia S.A. (2) | - | - | - | (123,564) | - | - | - | - |
| Banco<br> Santander Espanha (1) | (50,606) | (50,880) | (241,640) | (56,215) | (50,627) | (50,880) | (241,661) | (56,215) |
| Santander<br> Corretora de Seguros (2) | (20,202) | (55,772) | (17,976) | (40,145) | - | - | - | - |
| Getnet<br> S.A. | (13,278) | (174,715) | (4,627) | (4,936) | (13,996) | (177,548) | (5,183) | (4,936) |
| Santander<br> Caceis Brasil DTVM S.A.(3) | (9,497) | (13,896) | (12,286) | (15,318) | (9,497) | (13,896) | (12,286) | (15,318) |
| Santander<br> Leasing (2) | (79,374) | - | (79,374) | - | - | - | - | - |
| F1rst<br> Tecnologia e Inovação Ltda. | - | (88,850) | - | (31,533) | - | - | - | - |
| Zurich<br> Santander Brasil Seguros e Previdência S.A. (6) | - | - | - | - | - | (249) | - | - |
| Santander<br> Global Technology, S.L., SOCI | (45,793) | (107,367) | (13,136) | (117,245) | (45,793) | (107,367) | (13,136) | (117,245) |
| Santander<br> Fundo de Investimentos SBAC Referenciado | (1,568,258) | (67,291) | - | - | - | - | - | (3,577) |
| Others | (1,464) | (59,568) | (1,502) | (50,647) | (666) | (5,884) | (675) | (17,213) |
| Subordinated Debts | (12,159,140) | 1,829,449 | (14,088,607) | (1,606,853) | (12,159,140) | 1,829,449 | (14,088,607) | (1,606,853) |
| Banco<br> Santander Espanha (1) (4) | (12,159,140) | 1,829,449 | (14,088,607) | (1,606,853) | (12,159,140) | 1,829,449 | (14,088,607) | (1,606,853) |
| Donations | - | - | - | (4,200) | - | (5,191) | - | (4,610) |
| Fundação<br> Sudameris | - | - | - | (4,200) | - | (4,080) | - | (4,200) |
| Fundação<br> Santander | - | - | - | - | - | (311) | - | (410) |
| other liability- Others | (625,831) | (498,766) | (759,920) | (465,762) | (669,835) | (488,461) | (811,756) | (427,232) |
| Aquanima<br> Brasil Ltda. (3) | - | (7,441) | - | (7,692) | - | (7,491) | - | (7,692) |
| Santander<br> Caceis Brasil DTVM S.A.(3) | - | (7,105) | - | (874) | - | (7,105) | - | (874) |
| Zurich<br> Santander Brasil Seguros e Previdência S.A. (6) | - | - | - | - | (30,788) | (8,447) | (28,801) | - |
| Getnet<br> S.A. | (107,016) | (155,684) | (118,680) | (162,039) | (108,989) | (155,684) | (118,691) | (162,039) |
| F1rst Tecnologia<br> e Inovação Ltda. | - | (47,488) | - | (52,235) | - | - | - | - |
| Key<br> Management Personnel | (517,234) | (278,917) | (639,507) | (239,005) | (530,058) | (308,082) | (664,264) | (253,768) |
| Others | (1,581) | (2,131) | (1,733) | (3,917) | - | (1,652) | - | (2,859) |
| Guarantees and Limits (10) | 11,826 | 8 | 16,448 | 19 | 11,826 | 8 | 16,448 | 19 |
| Key<br> Management Personnel (9) | 11,826 | 8 | 16,448 | 19 | 11,826 | 8 | 16,448 | 19 |
(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 | |||
|---|---|---|---|---|
| 01/01 to<br><br>03/31/2022 **** | 01/01 to 03/31/2021 | 01/01 to<br><br>03/31/2022 **** | 01/01 to 03/31/2021 | |
| Asset<br> Management | 154.881 | 189,918 | 321.821 | 331,594 |
| Checking<br> Account Services | 955.635 | 959,372 | 958.084 | 959,979 |
| Lending<br> Operations and Income from Guarantees Provided | 265.889 | 287,609 | 334.011 | 378,457 |
| Lending Operations | 124.198 | 115,615 | 192.320 | 206,463 |
| Income Guarantees Provided | 141.691 | 171,994 | 141.691 | 171,994 |
| Insurance<br> Fees | 421.295 | 479,162 | 743.807 | 742,953 |
| Cards<br> (Debit and Credit) and Acquiring Services | 1.293.930 | 1,031,396 | 1.328.685 | 1,489,410 |
| Collection | 353.473 | 374,350 | 361.730 | 372,320 |
| Brokerage,<br> Custody and Placement of Securities | 287.610 | 296,600 | 372.239 | 368,566 |
| Others | 69.058 | 90,153 | 196.845 | 208,697 |
| Total | 3,801,771 | 3,708,560 | 4,617,222 | 4,851,976 |
23.
Personnel Expenses
| Bank | Consolidated | |||
|---|---|---|---|---|
| 01/01 to<br><br>03/31/2022 **** | 01/01 to 03/31/2021 | 01/01 to<br><br>03/31/2022 **** | 01/01 to<br><br>03/31/2021 | |
| Compensation | 920,463 | 846,795 | 1,251,085 | 998,914 |
| Charges | 271,225 | 348,301 | 338,802 | 409,353 |
| Benefits | 295,852 | 293,713 | 396,089 | 343,489 |
| Training | 12,376 | 9,427 | 14,192 | 10,688 |
| Others | 324 | 140 | 17,183 | 15,084 |
| Total | 1,500,240 | 1,498,376 | 2,017,351 | 1,777,528 |
24.
Other Administrative Expenses
| Bank | Consolidated | |||
|---|---|---|---|---|
| 01/01 to<br><br>03/31/2022 **** | 01/01 to 03/31/2021 | 01/01 to<br><br>03/31/2022 **** | 01/01 to<br><br>03/31/2021 | |
| Depreciation<br> and Amortization | 683,788 | 1,620,587 | 712,855 | 1,728,502 |
| Outsourced<br> and Specialized Services | 573,699 | 542,592 | 559,642 | 632,702 |
| Communications | 93,841 | 78,435 | 101,208 | 81,819 |
| Data<br> Processing | 747,709 | 733,909 | 688,933 | 670,790 |
| Advertising,<br> Promotions and Publicity | 83,050 | 88,156 | 120,845 | 114,373 |
| Rentals | 220,018 | 198,742 | 223,303 | 200,603 |
| Transportation<br> and Travel | 26,387 | 18,625 | 37,255 | 23,505 |
| Financial<br> System Services | 85,275 | 89,132 | 103,628 | 107,025 |
| Security<br> and Money Transport | 138,437 | 141,348 | 139,120 | 141,969 |
| Asset<br> Maintenance and Upkeep | 73,213 | 71,032 | 83,417 | 76,944 |
| Water,<br> Electricity and Gas | 60,366 | 47,803 | 62,684 | 49,020 |
| Materials | 38,599 | 13,910 | 43,294 | 17,176 |
| Others | 248,426 | 173,291 | 224,232 | 203,692 |
| Total | 3,072,808 | 3,817,562 | 3,100,416 | 4,048,120 |
25.
Other Operating Income
| Bank | Consolidated | |||
|---|---|---|---|---|
| 01/01 to<br><br>03/31/2022 **** | 01/01 to 03/31/2021 | 01/01 to<br><br>03/31/2022 **** | 01/01 to<br><br>03/31/2021 | |
| Net<br> Income Pension and Capitalization | - | - | 151,214 | 133,309 |
| Monetary<br> Adjustment of Escrow Deposits | 119,624 | 28,355 | 148,361 | 33,408 |
| Recoverable<br> Taxes | 100,991 | 4,574 | 112,321 | 8,291 |
| Recovery<br> of Charges and Expenses | 489,764 | 177,116 | 442,486 | 79,783 |
| Others | 581,890 | 550,722 | 1,326,749 | 999,661 |
| Total | 1,292,269 | 760,766 | 2,181,131 | 1,254,452 |
26.
Other Operating Expenses
| Bank | Consolidated | |||
|---|---|---|---|---|
| 01/01 to<br><br>03/31/2022 **** | 01/01 to<br><br>03/31/2021 | 01/01 to<br><br>03/31/2022 **** | 01/01 to<br><br>03/31/2021 | |
| Operating<br> Provisions | ||||
| Fiscal (Note 19.c) | 161,919 | 20,081 | 170,080 | 20,721 |
| Labor (Note 19.c) | 201,608 | 331,420 | 218,533 | 342,381 |
| Civil (Note 19.c) | 124,828 | 128,943 | 167,468 | 157,176 |
| Credit<br> Cards | 853,463 | 956,773 | 809,529 | 864,165 |
| Actuarial<br> Losses - Pension Plan | 89,954 | 55,957 | 90,169 | 55,614 |
| Legal<br> Fees and Costs | 40,816 | 51,891 | 41,708 | 51,519 |
| Serasa<br> and SPC (Credit Reporting Agency) | 30,933 | 27,765 | 31,596 | 29,908 |
| Brokerage<br> Fees | 21,494 | 19,380 | 21,494 | 18,578 |
| Commissions | 240,473 | 267,823 | 501,019 | 570,484 |
| Others<br> (1) | 1,275,667 | 742,081 | 2,129,218 | 1,463,873 |
| Total | 3,041,155 | 2,602,114 | 4,180,814 | 3,574,419 |
(1) In the periods ended March 31, 2022 and 2021, 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 | |||
|---|---|---|---|---|
| 01/01 to<br><br>03/31/2022 **** | 01/01 to<br><br>03/31/2021 | 01/01 to<br><br>03/31/2022 **** | 01/01 to<br><br>03/31/2021 | |
| Result<br> on sale of Investments | - | - | 6 | (5) |
| Result<br> on Sale of Other Assets | 25,197 | 17,990 | 11,264 | 14,775 |
| Reversal<br> (Recognition) of Allowance for Losses on Other Assets (1) | (2,479) | (18,445) | 8,388 | (13,295) |
| Expense<br> on Assets Not in Use | (8,373) | (9,668) | (8,463) | (9,818) |
| Gains<br> (Losses) of Capital | 344,377 | (1,179) | 340,757 | (1,245) |
| Other<br> Income (Expenses) | 18,062 | 36,333 | 19,551 | 38,773 |
| Total | 376,784 | 25,031 | 371,503 | 29,185 |
28.
Employee Benefit Plans - Post-Employment Benefits
Share-BasedCompensation
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 take into account 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 | Períod de Vesting | E xercise /Settlement PE riod | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Local | Santander Shares (Brazil) | 01/2019 a 12/2021 | 2022 e 2023 | (*) | ||||||
| 01/2020 a 12/2022 | 2023 | 3,668,000 | (*) | |||||||
| 01/2020 a 12/2022 | 2023 e 2024 | 1,656,667 | (*) | |||||||
| 01/2021 a 06/2024 | 2024 | 13,520,000 | (*) | |||||||
| 01/2021 a 12/2023 | 2023 | 1,834,000 | (*) | |||||||
| 07/2019 a 06/2022 | 2022 | 100,766 | SANB11 | |||||||
| 09/2020 a 09/2022 | 2022 | 291,302 | SANB11 | |||||||
| 01/2020 a 09/2023 | 2023 | 174,941 | SANB11 | |||||||
| 01/2021 a 12/2022 | 2023 | 177,252 | SANB11 | |||||||
| 01/2021 a 12/2023 | 2024 | 348,615 | SANB11 | |||||||
| 01/2021 a 01/2024 | 2024 | 18,797 | SANB11 | |||||||
| Global | Santander Spain Shares and Options | 01/2020 a 12/2022 | 2023 | SAN (**) | ||||||
| 01/2020 a 12/2022 2023, with a limit for exercising the options until 2030 | 1,618,445 | Opções s/ SAN (**) | ||||||||
| 01/2021 a 12/2023 | 02/2024 | 135,632 | SAN (**) | |||||||
| 01/2021 a 12/2023 02/2024, with a limit for exercising the options until 02/2029 | 404,630 | Opções s/ SAN (**) | ||||||||
| Balance of Plans on March 31, 2022 | R20,678,667 | (*) | R14,356,667 | |||||||
| 1,152,076 | SANB11 | 841,446 | ||||||||
| 445,208 | SAN | 318,478 | ||||||||
| 2,023,075 | Opções s/ SAN | 1,664,983 |
All values are in US Dollars.
(*) 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.
(***) Plan finalized on 12/31/2021, with performance indicators attained by 83.11%. On 03/31/2022, 40,403 gross shares were delivered, corresponding to the 2022 installment, leaving 40,403 shares for payment in March/2023.
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.
Global ILP Plans
We currently have 2 global plans launched in 2019 and 2020. Eligible executives had an incentive target set in reais. The payment in accordance with the fulfillment of the performance indicators will be calculated in shares and options of Grupo Santander (SAN), after a deferral period of three years, with equivalent settlement in reais.
Pricing Model
The pricing model is based on the Local Volatility model or Dupire model, which allows the simultaneous calibration of all listed European options. In addition to this model, there is an extension to deal with uncertainty in dividends, where part of the dividend value is considered confirmed, and the rest is linked to the performance of the underlying. This extended model is integrated into a PDE engine, which numerically solves the corresponding stochastic differential equation to calculate the expected value of the product.
Data and assumptions used in the pricing model, including weighted average share price, exercise price, expected volatility, option life, expected dividends and risk-free interest rate
• The weighted average share price (and exercise price) is €3,104 based on the 15-day weighted average between 01/07/2022 and 27/01/2022
• The expected volatility used was 33.80
• Options expire on 01/02/2030
• Expected dividends range from approximately 6.6 cents in the short term (2022) to approximately 5.75 cents per share per year in the long term (2030)
• The discount curve used gives a discount of 0.96 for 2030
The exercise price, in all cycles and if the objectives established in the regulations are achieved, will be the market price on the exercise date.
Long-Term Incentive Plans (ILP)
Long-term incentive plans may be granted according to the strategy of new companies in the group or specific businesses.
Each plan will have a specific contract and its calculation and payment must be approved by the established governance, observing local and global normative resolutions.
The reference value of each participant will be converted into SANB11 shares, normally at the price of the last 15 trading sessions of the month immediately preceding the plan's payment.
At the end of the vesting period, payment either for the resulting shares in the case of local plans, or for the amount equivalent to the shares/options of the global plans are made with a 1-year restriction, this payment is still subject to the application of the Malus/Clawback clauses , which may reduce or cancel the shares to be delivered in cases of non-compliance with internal rules and exposure to excessive risks.
Impact on Result
The impacts on the result are recorded in the Personnel Expenses item, as follows:
| Consolidated | ||||
|---|---|---|---|---|
| 01/01 to 03/31/2022 | **** | 01/01 to <br>03/31/2021 | ||
| Program | Settlement Type | **** | ||
| Local | Santander Actions (Brazil) | 6,721 | 4,846 | |
| Global | Santander Spain shares and stock options | 799 | 952 |
a) Share-Referenced Variable Compensation
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 03/31/2022 | 01/01 to<br><br>03/31/2021 | 01/01 to 03/31/2022 | 01/01 to<br><br>03/31/2021 |
| Collective<br> 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) | 3,061 | 14,384 | 3,719 | 14,212 |
| Unidentified<br> 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) | 7,195 | 2,706 | 8,337 | 2,789 |
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 risks 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. CreditRisk
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. MarketRisk 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 SarbanesOxley - SOX (Security Exchange Commission).
D. Bank´sbusiness is highly dependent on the proper functioning of informationtechnology 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. Complianceand Reputacional 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 forthe 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 andEnvironmental 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. Structureof 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
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:
| R$ Millions | 03/31/2022 | 12/31/2021 |
|---|---|---|
| Tier I<br> Regulatory Capital | 76,875.5 | 76,969.9 |
| Principal<br> Capital | 70,782.7 | 69,919.9 |
| Supplementary<br> Capital (Note 17) | 6,092.8 | 7,050.1 |
| Tier<br> II Regulatory Capital (Note 17) | 11,781.4 | 12,591.3 |
| Regulatory Capital (Tier I and II) | 88,656.9 **** | 89,561.3 **** |
| Credit<br> Risk (1) | 525,390.9 | 527,119.3 |
| Market<br> Risk (2) | 17,729.7 | 15,122.2 |
| Operational<br> Risk | 59,663.3 | 58,499.8 |
| Total RWA (3) | 602,783.9 **** | 600,741.3 **** |
| Basel I Ratio | 12.75 **** | 12.81 **** |
| Basel Principal Capital | 11.74 **** | 11.64 **** |
| Basel Regulatory Capital | 14.71 **** | 14.91 **** |
(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 3770 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 - SensitivityAnalysis
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 March 31, 2022.
| Trading Portfolio | Consolidated | |||
|---|---|---|---|---|
| Risk Factor | Description | Scenario 1 | Scenario 2 | Scenario 3 |
| Interest<br> Rate - Real | Exposures subject to Changes in Interest Fixed Rate | (4,212) | (92,599) | (185,198) |
| Coupon<br> Interest Rate | Exposures subject to Changes in Coupon Rate of Interest Rate | (469) | (6,078) | (12,155) |
| Coupon -<br> US Dollar | Exposures subject to Changes in Coupon US Dollar Rate | (4,491) | (16,649) | (33,298) |
| Coupon -<br> Other Currencies | Exposures subject to Changes in Coupon Foreign Currency Rate | (961) | (1,619) | (3,239) |
| Foreign<br> Currency | Exposures subject to Foreign Exchange | (363) | (9,082) | (18,163) |
| Eurobond/Treasury/Global | Exposures subject to Interest Rate Variation on Papers Traded on the International Market | (4,446) | (5,128) | (10,255) |
| Inflation | Exposures subject to Change in Coupon Rates of Price Indexes | (4,741) | (29,319) | (58,638) |
| Shares<br> and Indexes | Exposures subject to Change in Shares Price | (1,323) | (33,074) | (66,149) |
| Commodities | Exposures subject to Change in Commodity Price | (1,009) | (25,230) | (50,460) |
| Total (1) | (22,015) | (218,778) | (437,556) |
(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<br> Rate - Real | Exposures subject to Changes in Interest Fixed Rate | (53,404) | (2,025,639) | (4,412,897) | |||
| TR<br> and Long-Term Interest Rate - (TJLP) | Exposures subject to Change in Exchange TR and TJLP | (6,788) | (128,889) | (214,366) | |||
| Inflation | Exposures subject to Change in Coupon Rates of Price Indexes | (42,596) | (563,997) | (1,038,378) | |||
| Coupon -<br> US Dollar | Exposures subject to Changes in Coupon US Dollar Rate | (11,891) | (71,495) | (137,425) | |||
| Coupon -<br> Other Currencies | Exposures subject to Changes in Coupon Foreign Currency Rate | (648) | (9,859) | (20,073) | |||
| Interest<br> Rate Markets International | Exposures subject to Changes in Interest Rate Negotiated Roles in International Market | (31,714) | (175,282) | (360,089) | |||
| Foreign<br> Currency | Exposures subject to Foreign Exchange | 628 | 15,708 | 31,416 | |||
| Total (1) | (146,411) | (2,959,453) | (6,151,810) |
(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$43,927,431 (12/31/2021 - R$49,624,633) at the Bank and R$43,927,431 (12/31/2021) 2021 - R$49,624,633) in the Consolidated.
b) The total amount of investment funds and assets under management by Conglomerate Santander is R$2,629,154 (12/31/2021 - R$2,770,684) and the total amount of investment funds and assets under management is R$266,449,126 (12/31/2021 - R$192,927,475) recorded in memorandum accounts.
c) The insurance in force on March 31, 2022, corresponding to coverage of fires, natural disasters and other risks related to properties, has a coverage value of R$9,214,986 (12/31/2021 - R$9,214,986) in the Bank and Consolidated. In addition, the Bank and the Consolidated on March 31, 2022, there are other policies in force to cover risks related to fraud, civil liability and other assets in the amount of R$ 1,546,050 (12/31/2021 - BRL 1,546,120).
d) Between March 31, 2022 and December 31, 2021, there were no related active operations and obligations for related active operations.
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:
| 03/31/2022 | 31/12/2021 | |
|---|---|---|
| Up to 1<br> Year | 700,433 | 715,576 |
| Between1 to 5 Years | 1,339,828 | 1,420,853 |
| More than 5 Years | 162,909 | 181,417 |
| Total | 2,203,170 | 2,317,846 |
Additionally, Banco Santander has contracts with an indefinite term, in the amount of R$801 (12/31/2021 - R$801) corresponding to the monthly rent of contracts with this feature. Operating lease payments, recognized as expenses in the first quarter of 2022, amounted to R$369,482 (2021 - R$369,482).
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.
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 | 2022 | ||||
|---|---|---|---|---|---|
| Assets | CarryingAmount | Maket Value | 1 | 2 | 3 |
| Interbank<br> Investments | 53,920,837 | 53,920,837 | 12,530,487 | 34,624,069 | 6,766,280 |
| Securities<br> and Debt Instruments | 229,166,720 | 229,582,537 | 176,683,872 | 12,846,433 | 40,052,233 |
| Derivatives<br> Financial Instruments | 29,921,266 | 29,921,266 | - | 29,625,340 | 295,926 |
| Lending<br> Operations | 378,225,883 | 372,062,084 | - | - | 372,062,084 |
| Total | 691,234,706 | 685,486,724 | 189,214,359 | 77,095,842 | 419,176,523 |
| In Thousands of Brazilian Real | 2021 | ||||
| Assets | CarryingAmount | Maket Value | 1 | 2 | 3 |
| Interbank<br> Investments | 33,629,318 | 33,629,318 | 1,224,817 | 25,912,368 | 6,492,133 |
| Securities<br> and Debt Instruments | 227,705,982 | 228,618,182 | 162,531,523 | 21,640,333 | 44,446,326 |
| Derivatives<br> Financial Instruments | 21,089,724 | 21,089,724 | - | 20,833,986 | 255,738 |
| Lending<br> Operations | 383,479,674 | 377,805,784 | - | - | 377,805,784 |
| Total | 665,904,698 | 661,143,008 | 163,756,340 | 68,386,687 | 428,999,981 |
The following is a comparison between the book values of the Bank's financial liabilities measured at a value other than market value and their respective market values as of March 31, 2022 and December 31, 2021:
| In Thousands of Brazilian Real | 2022 | ||||
|---|---|---|---|---|---|
| Maket Value | |||||
| Liabilities | CarryingAmount | 1 | 2 | 3 | |
| Deposits | 393,614,710 | 393,413,215 | - | - | 393,413,215 |
| Money<br> Market Funding | 109,244,124 | 108,984,177 | - | 108,984,177 | - |
| Borrowings<br> and Onlendings | 82,393,254 | 82,393,254 | - | - | 82,393,254 |
| Funds<br> from Acceptance and Issuance of Securities | 108,718,666 | 107,630,426 | - | - | 107,630,426 |
| Derivatives<br> Financial Instruments | 29,769,361 | 29,769,361 | - | 29,391,026 | 378,335 |
| Debt<br> Instruments Eligible to Compose Capital | 17,874,236 | 17,874,236 | - | - | 17,874,236 |
| Total | 741,614,351 | 740,064,669 | - **** | 138,375,203 | 601,689,466 |
| In Thousands of Brazilian Real | 2021 | ||||
| Maket Value | |||||
| Liabilities | CarryingAmount | 1 | 2 | 3 | |
| Deposits | 403,639,687 | 403,598,886 | - | - | 403,598,886 |
| Money<br> Market Funding | 95,648,600 | 95,604,396 | - | 95,604,396 | - |
| Borrowings<br> and Onlendings | 91,586,750 | 91,586,750 | - | - | 91,586,750 |
| Funds<br> from Acceptance and Issuance of Securities | 95,380,860 | 94,198,680 | - | - | 94,198,680 |
| Derivatives<br> Financial Instruments | 24,647,231 | 24,647,231 | - | 24,213,648 | 433,583 |
| Debt<br> Instruments Eligible to Compose Capital | 19,641,408 | 19,641,408 | - | - | 19,641,408 |
| Total | 730,544,536 | 729,277,351 | - **** | 119,818,044 | 609,459,307 |
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 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | ||||||||||||
| Recurring Income | Non-recurring Income | 01/01 to 03/31/2022 | Recurring Income | Non-recurring Income | 01/01 to 03/31/2021 | ||||||||
| Income<br> Related to Financial Operations | (9,071,655) | - | (9,071,655) | 35,554,559 | - | 35,554,559 | |||||||
| Expenses<br> on Financial Operations | 16,667,497 | - | 16,667,497 | (29,174,884) | - | (29,174,884) | |||||||
| Gross Income Related to Financial Operations | 7,595,842 | - **** | 7,595,842 | 6,379,675 | - **** | 6,379,675 | |||||||
| Other<br> Operating Revenues (Expenses) (1)(2) | (2,584,297) | (59,777) | (2,644,074) | (1,955,366) | (1,031,615) | (2,986,981) | |||||||
| Operating Income | 5,011,545 | (59,777) | 4,951,768 | 4,424,309 | (1,031,615) | 3,392,694 | |||||||
| Non-Operating Income | 29,337 | 347,447 | 376,784 | 25,031 | - **** | 25,031 | |||||||
| Income Before Taxes on Income and Profit Sharing | 5,040,882 | 287,670 | 5,328,552 | 4,449,340 | (1,031,615) | 3,417,725 | |||||||
| Income<br> Tax and Social Contribution (1)(2)(3) | (745,767) | (133,791) | (879,558) | 128,879 | (140,933) | (12,054) | |||||||
| Profit<br> Sharing | (531,619) | - | (531,619) | (429,095) | - | (429,095) | |||||||
| Net Income | 3,763,496 | 153,879 | 3,917,375 | 4,149,124 | (1,172,548) | 2,976,576 | |||||||
| Consolidated | |||||||||||||
| 2022 | 2021 | ||||||||||||
| Recurring Income | Non-recurring Income | 01/01 to 03/31/2022 | Recurring Income | Non-recurring Income | 01/01 to 03/31/2021 | ||||||||
| Income<br> Related to Financial Operations | (5,695,793) | - | (5,695,793) | 37,756,910 | - | 37,756,910 | |||||||
| Expenses<br> on Financial Operations | 15,323,171 | - | 15,323,171 | (29,816,689) | - | (29,816,689) | |||||||
| Gross Income Related to Financial Operations | 9,627,378 | - **** | 9,627,378 | 7,940,221 | - **** | 7,940,221 | |||||||
| Other<br> Operating Revenues (Expenses) (a)(b) | (3,941,652) | (59,777) | (4,001,429) | (3,004,000) | (1,031,615) | (4,035,615) | |||||||
| Operating Income | 5,685,726 | (59,777) | 5,625,949 | 4,936,221 | (1,031,615) | 3,904,606 | |||||||
| Non-Operating Income | 24,056 | 347,447 | 371,503 | 29,185 | - **** | 29,185 | |||||||
| Income Before Taxes on Income and Profit Sharing | 5,709,782 | 287,670 | 5,997,452 | 4,965,406 | **** | (1,031,615) | 3,933,791 | ||||||
| Income<br> Tax and Social Contribution (a)(b) | (1,405,620) | (133,791) | (1,539,411) | (479,450) | (140,933) | (620,383) | |||||||
| Profit<br> Sharing | (475,629) | - | (475,629) | (471,886) | - | (471,886) | |||||||
| Non-Controlling<br> Interest | (36,527) | - | (36,527) | (25,258) | - | (25,258) | |||||||
| Net Income | 3,792,006 | 153,879 | 3,945,885 | 3,988,812 | **** | (1,172,548) | 2,816,264 |
a) Amortization of goodwill on investment recognized as Other Operating Expenses in the amount before taxes of R$59,777 (2021 - R$1,031,615) in the Bank and Consolidated, with a net impact of taxes of R$37,217 (2021 - R$1,008,815).
b) Non-operating income from the acquisition of equity interest in CIP S.A. in 2022, in the amount before taxes of R$347,447 (net of taxes: R$191,096), in the Bank and Consolidated.
31.
Subsequent Events
Deliberation of Dividends and Interest on Equity
The Board of Directors of Banco Santander, at a meeting held on April 14, 2022, approved the proposal of the Executive Board, ad referendum of the Annual General Meeting to be held in 2023, the distribution of: (I) Interim Dividends, in the amount of R$ 700,000,000.00 (seven hundred million reais) calculated based on the profit for the year calculated up to the balance sheet drawn up on March 31, 2022; and (II) Interest on Equity, in the amount of R$ 1,000,000,000.00 (one billion reais) based on the balance of the Dividend Equalization Reserve, according to the balance sheet drawn up on March 31, 2022. Dividends and Interest on Equity will be fully attributed to the mandatory dividends to be distributed by the Company for the year 2022 and will be paid as of May 16, 2022, without any monetary restatement.
Composition of Management Bodies
AdministrativeCouncil
Sérgio Agapito Lires Rial - President
Alberto Monteiro de Queiroz Netto
Angel Santodomingo Martell – Director (independent)
Deborah Patricia Wright - Counselor (independent)
Deborah Stern Vieitas - Counselor (independent)
José Antonio Álvarez Álvarez – Board Member
José de Paiva Ferreira – Counselor
José Garcia Cantera – Director
Marilia Artimonte Rocca - Director (independent)
Mario Roberto Opice Leão – Counselor
Pedro Augusto de Melo - Director (independent)
AuditCommittee
Deborah Stern Vieitas – Coordinator
Maria Elena Cardoso Figueira – Qualified Technical Member
René Luiz Grande – Member
Vania Maria da Costa Borgerth – Member
Riskand Compliance Committee
Pedro Augusto de Melo – Coordinator
Sérgio Agapito Lires Rial – Member
José de Paiva Ferreira – Member
Virginie Genès-Petronilho – Member
SustainabilityCommittee
Marilia Artimonte Rocca – Coordinator
Andrea Marques de Almeida – Member
Álvaro Antônio Cardoso de Souza – Member
Carlos Aguiar Neto – Member
Luiz Masagão Ribeiro Filho – Member
Tasso Rezende de Azevedo – Member
Nominationand Governance Committee
Sérgio Agapito Lires Rial – Coordinator
Deborah Patricia Wright – Member
Pedro Augusto de Melo – Member
Luiz Fernando Sanzogo Giogi – Member
CompensationCommittee
Deborah Patricia Wright – Coordinator
Sérgio Agapito Lires Rial – Member
Pedro Augusto de Melo – Member
Luiz Fernando Sanzogo Giogi – Member
FiscalCouncil
Louise Barsi - Effective member
Manoel Marcos Madureira - Substitute Member
Luciano Faleiros Paolucci - Substitute Member
Valmir Pedro Rossi - Substitute Member
Cassia Maria Matsuno Chibante - Full Member
José Roberto Machado Filho - Effective member
*The Fiscal Council was installed at the Annual Shareholders' 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 a term of office until the Meeting Ordinary General Meeting of 2022.
ExecutiveBoard
ChiefExecutive Officer
Mario Roberto Opice Leão
Vice-PresidentExecutive Officer and Investor Relations Officer
Angel Santodomingo Martell
Vice-PresidentExecutive Officers
Alberto Monteiro de Queiroz Netto
Alessandro Tomao
Andrea Marques de Almeida
Antonio Pardo de Santayana Montes
Ede Ilson Viani
Elita Vechin Pastorelo Ariaz
Jean Pierre Dupui
João Marcos Pequeno De Biase
Patrícia Souto Audi
Vanessa de Souza Lobato Barbosa
Officerswithout specific designation
Adriana Marques Lourenço de Almeida
Alexandre Guimarães Soares
Amancio Acúrcio Gouveia
Ana Paula Vitali Janes Vescovi
André de Carvalho Novaes
André Juaçaba de Almeida
André Rosenblit
Carlos Aguiar Neto
Celso Mateus de Queiroz
Claudenice Lopes Duarte
Daniel Fantoni Assa
Francisco Soares da Silva Junior
Franco Luigi Fasoli
Geraldo José Rodrigues Alckmin Neto
Germanuela de Almeida de Abreu
Gilberto Duarte de Abreu Filho
Gustavo Alejo Viviani
Gustavo de Souza Fosse
Igor Mario Puga
Jean Paulo Kambourakis
Luciana de Aguiar Barros
Luis Guilherme Mattoso de Oliem Bittencourt
Luiz Masagão Ribeiro Filho
Marcelo Augusto Dutra Labuto
Maria Teresa Mauricio da Rocha Pereira Leite
Marilize Ferrazza Santinoni
Murilo Setti Riedel
Paulo César Ferreira de Lima Alves
Paulo Sérgio Duailibi
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
Thomaz Antonio Licarião Rocha
Thomas Gregor Ilg
Tiago Celso Abate
Vítor Ohtsuki
Accountant
Diego Santos Almeida – CRC Nº 1SP316054/O-4
Declaration of directors on the financial statements
For the purposes of complying with the provisions of article 25, paragraph 1, item VI, of the Securities 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 discussed, reviewed and agreed with the Financial Statements prepared by Banco Santander´s BRGAAP criteria, for the period ended march 31, 2022, and the documents that comprise them, being: Management Report, balance sheets, statement results, 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), the rules of the National Monetary Council, of the Central Bank of Brazil according to the model of Plan C of the National Financial System Institutions (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 March 31, 2022:
ChiefExecutive Officer
Mario Roberto Opice Leão
Vice-PresidentExecutive Officer and Investor Relations Officer
Angel Santodomingo Martell
Vice-PresidentExecutive Officers
Alberto Monteiro de Queiroz Netto
Alessandro Tomao
Andrea Marques de Almeida
Antonio Pardo de Santayana Montes
Ede Ilson Viani
Elita Vechin Pastorelo Ariaz
Jean Pierre Dupui
João Marcos Pequeno De Biase
Patrícia Souto Audi
Vanessa de Souza Lobato Barbosa
Officerswithout specific designation
Adriana Marques Lourenço de Almeida
Alexandre Guimarães Soares
Amancio Acúrcio Gouveia
Ana Paula Vitali Janes Vescovi
André de Carvalho Novaes
André Juaçaba de Almeida
André Rosenblit
Carlos Aguiar Neto
Celso Mateus de Queiroz
Claudenice Lopes Duarte
Daniel Fantoni Assa
Francisco Soares da Silva Junior
Franco Luigi Fasoli
Geraldo José Rodrigues Alckmin Neto
Germanuela de Almeida de Abreu
Gilberto Duarte de Abreu Filho
Gustavo Alejo Viviani
Gustavo de Souza Fosse
Igor Mario Puga
Jean Paulo Kambourakis
Luciana de Aguiar Barros
Luis Guilherme Mattoso de Oliem Bittencourt
Luiz Masagão Ribeiro Filho
Marcelo Augusto Dutra Labuto
Maria Teresa Mauricio da Rocha Pereira Leite
Marilize Ferrazza Santinoni
Murilo Setti Riedel
Paulo César Ferreira de Lima Alves
Paulo Sérgio Duailibi
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
Thomaz Antonio Licarião Rocha
Thomas Gregor Ilg
Tiago Celso Abate
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 period ended march 31, 2022 , 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 theExecutive Board of Banco Santander on March 31, 2022:
ChiefExecutive Officer
Mario Roberto Opice Leão
Vice-PresidentExecutive Officer and Investor Relations Officer
Angel Santodomingo Martell
Vice-PresidentExecutive Officers
Alberto Monteiro de Queiroz Netto
Alessandro Tomao
Andrea Marques de Almeida
Antonio Pardo de Santayana Montes
Ede Ilson Viani
Elita Vechin Pastorelo Ariaz
Jean Pierre Dupui
João Marcos Pequeno De Biase
Patrícia Souto Audi
Vanessa de Souza Lobato Barbosa
Officerswithout specific designation
Adriana Marques Lourenço de Almeida
Alexandre Guimarães Soares
Amancio Acúrcio Gouveia
Ana Paula Vitali Janes Vescovi
André de Carvalho Novaes
André Juaçaba de Almeida
André Rosenblit
Carlos Aguiar Neto
Celso Mateus de Queiroz
Claudenice Lopes Duarte
Daniel Fantoni Assa
Francisco Soares da Silva Junior
Franco Luigi Fasoli
Geraldo José Rodrigues Alckmin Neto
Germanuela de Almeida de Abreu
Gilberto Duarte de Abreu Filho
Gustavo Alejo Viviani
Gustavo de Souza Fosse
Igor Mario Puga
Jean Paulo Kambourakis
Luciana de Aguiar Barros
Luis Guilherme Mattoso de Oliem Bittencourt
Luiz Masagão Ribeiro Filho
Marcelo Augusto Dutra Labuto
Maria Teresa Mauricio da Rocha Pereira Leite
Marilize Ferrazza Santinoni
Murilo Setti Riedel
Paulo César Ferreira de Lima Alves
Paulo Sérgio Duailibi
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
Thomaz Antonio Licarião Rocha
Thomas Gregor Ilg
Tiago Celso Abate
Vítor Ohtsuki
Fiscal Council’s Opinion
The members of the Fiscal Council, in the quarter of their legal and statutory duties, examined the Management Report and the Financial Statements of Banco Santander (Brasil) S.A., referring to the first quarter of 2022, and concluded, based on the examinations carried out, in the clarifications provided by the Management, also considering the unqualified opinion of PwC Auditores Independentes, that the aforementioned documents, examined in light of the accounting practices adopted in Brazil, applicable to institutions authorized to operate by the Central Bank of Brazil, adequately reflect the equity situation and financial of the Bank.
São Paulo, April 25, 2022.
FISCALCOUNCIL
Louise Barsi
Manoel Marcos Madureira
Luciano Faleiros Paolucci
Valmir Pedro Rossi
Cassia Maria Matsuno Chibante
Jose Roberto Machado Filho
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: March 26, 2022
| Banco Santander (Brasil) S.A. | |
|---|---|
| By: | /S/ Amancio Acurcio Gouveia<br><br>* * * |
| Amancio Acurcio GouveiaOfficer Without Specific Designation | |
| By: | /S/Andrea Marques de Almeida<br><br>*** * *** |
| --- | --- |
| Andrea Marques de Almeida Vice - President Executive Officer |