2013 Annual Report
BUSINESS PERFORMANCE
Government & Institutions (G&I)
The G&l area serves two segments: governments (federal,
state, and local) and the Armed Forces; and institutions
from the private sector, with an emphasis on the health
services chain. In 2013, the Business Unit posted a 13.4%
growth in funding and 22.6% in loans YoY.
The main efforts to attain these outcomes were the
opening of 65,000 new checking accounts tied to
payrolls; we also retained an additional 105,000 existing
accounts in the Bank portfolio; and a closer relationship
with the Wholesale Bank. Last year the area effected
106 transactions with the Treasury Sales division and
four transactions with the Merger & Acquisition team,
in addition to acting as a middleperson in the issuance
of securities by clients in the stock markets, with the
support of the Debt Capital Markets area.
The Bank has increased its footprint in this sector, with
the support of a highly specialized model. The area relies
on a commercial team dedicated to the segment, working
together with health insurance providers, charity and
for-profit hospitals, the Sistema Unimed and diagnostic
centers and laboratories.
Payroll
The Payroll business is strategic lever for the expansion
and loyalty of the client base, both in individuals and
corporations. By the end of 2013, the client base that
assigned the processing of their payroll to Santander totaled
more than 35,000 firms, with over 4 million individuals
receiving their salaries and wages through the Bank.
Santander Brazil also has in place a specialized team of
managers with direct communication channels with Human
Resource Heads in client firms, including a network with
approximately 1,300 Service Centers and 1,700 e-Centers
supplementing the Branch Network to serve Payroll clients.
The Bank also increased its market share in both the
Wholesale and University segments, with a significant
growth also in the SME segment. Last year alone the Bank
acquired more than new 370,000 individual clients via the
Payroll program only.
Agribusiness
Agribusiness is one of the key sectors in the Brazilian
economy and is part of the Bank's commercial strategy.
In 2013, the Retail Agribusiness area grew by 24% in
production due to the good performance of agricultural
commodities and the consolidation of the customer service
model adopted by the Bank, with the support of authorized
technical offices. Under the Bank's coordination, the offices
are in charge of collecting, reviewing and submitting the
documents in connection with farmers' activities. Last year
alone the number of authorized offices grew to 108 from 85.
The Bank financed the entire farming process from sowing
costs to sales, plus any loans allocated to the operations,
improvement and expansion of production structure and crop
storage. By the end of December, the agribusiness credit
portfolio totaled R$ 2.7 billion, a 26.7% growth YoY The
corporate portfolio recorded R$ 2.3 billion, a 3.1% growth.
Microcredit G4-FS13
Santander Microcredit was created
in 2002 with the aim of benefiting
small entrepreneurs with no access
to conventional credit facilities and
who needed funds and guidance
to leverage their business.
The Bank chose to work with
the guided productive microcredit
model and not with the consumer
microcredit as the former is inclusive
and helps promoting social
transformation. The combination
of credit and financial guidance
helps small entrepreneurs improve
their business performance while
transforming it into a long-term
sustainable project.
Currently, Santander Microcrédito is
offering the following products to
clients: Capital de Giro Individual
(Individual Working Capital) and
Capital de Giro Grupo Solidário
Financiamento de Bens e Serviços
(Group Working Capital - Credit to
Purchase Goods and Services, i.e.
loans to purchase machinery
or remodeling). G4-FS7
In addition to boosting
entrepreneurs' history, microcredit
has an indirect economic impact that
is highly positive. The program starts
a virtuous cycle that benefits the
whole neighboring community.
In general, 70% of the income
generated by these initiatives
circulates within the community,
which strengthens small businesses
while generating employment to
family members and neighbors.
The program broke even in 2008
and has been expanding ever since.
It is now the biggest production-
oriented microcredit program among
the country's private banks. By the end
of 2013 the program totaled 124,000
clients (1), in 11 states and more than
600 townships, with a credit portfolio
of R$ 266.9 million, a 12% growth
YoY. The portfolio is mainly comprised
by women, who represent 70%
of the total clients, with a strong
concentration in the Northeast (95%
of its assets).
NPL ratio for this type of loan is below
2%, considering late payments over
90 days, much below the ratios in
conventional credit facilities. This figure
reflects the focus on guidance, a key
indicator of its success; it shows that
entrepreneurs are investing in their
business while generating recurring
yields to grow in a healthy manner.
In 2013, the Bank recorded more
than 430,000 guidance visits to
entrepreneurs and disbursed a total
of R$ 487 million, which illustrates the
growth in this business.
In August Santander Microcrédito
reached R$ 2 billion in loans to small
entrepreneurs since the inception of
the program.
HOT
Tempurre
Seja
bem-vindo.
The inauguration of the Paraisopolis (São Paulo) branch.
78 Annual Report 2013
(1) Includes both performing and nonperforming loans.
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