2013 Annual Report
STRATEGY
AND INVESTMENTS
A
1.8
PERCENTAGE POINT REDUCTION
IN NPL RATIO
A BANK FOR
ITS CLIENTS
There is no recurring, profitable
and sustainable growth without
happy clients.
COMBINED ACCOUNTS FOR
6 CLIENT PROFILES
The most important assets of commercial banks, such as
Santander Brazil, is the relationship with its clients. The
best way to achieve a recurrent, profitable and sustainable
growth in our environment is to earn client satisfaction
while increasing their loyalty towards the Bank in
exchange of better services. Santander Brazil's strategy
stems from this vision and is supported by 4 pillars: Client
satisfaction, Management, Efficiency and Capital.
Client Satisfaction
The best way to attract clients is by promoting a mix of
agile, efficient services, segmentation and a value-added
offer that meets the needs of each profile, and a
multichannel platform that allows different ways to interact
with the Bank. With the financial industry and consumer
relationships undergoing significant transformations,
customized offers are important to each client profile, while
respecting their individual needs and giving them freedom
to choose their preferred channel to interact with the Bank.
This was the assumption that drove two among the main
deliveries in 2013 in the Individual segment. In February
the Bank launched Contas Combinadas, a package that
integrates checking account and card services, designed
to meet specific needs of the six major client profiles,
identified via market research conducted during more than
one year.
Upon the study of the needs for
each
group, the Bank prepared
four packages with benefits such
as exemption of charges, reductions
in fees and flexibility in payment
dates, provided that the client meets
minimum loyalty requirements as
defined in each Conta Combinada (1).
Two months after the launch,
the Bank completed the Individual
segmentation by inaugurating
Santander Select, a high-income
segment, positioned between Private
Bank (worth above R$3 million) and
Personal Banking (represented by Van
Gogh, for clients with an income in
excess of R$4 thousand per month).
The category provides exclusive
products and customized consultancy
for equity management, plus a
network of dedicated branches. Last
year alone 61 branches were opened.
In the Corporate segment, the Bank
consolidated its unique model. For
Small Enterprises, Santander is the
only bank with an Atendimento
Unificado (Unified Attendence)
offer, with one single relationship
manager servicing both the firm and
its members; in Medium Enterprises,
the Bank increased to 73 from 64
the number of Núcleos (Core Units),
which are regional units dedicated to
serve and provide support to clients
in this segment; and for larger firms,
we rely on two structures: Corporate
and Global Banking & Markets
(GB&M), with customized services
that meet the firm needs (learn more
on Business Performance).
Management
The new reality of the financial
industry, with spread compression and
a slowdown in loan growth required
an adjustment in the Bank's strategy,
which resulted in the implementation
of a new business focus, based on the
improvement of the credit portfolio
quality and increased client loyalty,
operating efficiency and productivity.
As for credit, the strategic products
and segments for Santander Brazil are
those with the greatest potential for
building loyalty, growth and a lower
risk profile, among which the Bank
highlight's Mortgages, Vehicle
Financing, SMEs, Cards and Acquiring.
Last year the scenario favored a more
steep growth for collateralized
products, with a lower risk, versus
revolving credit such as credit card and
overdraft facility. This changed the
Bank asset portfolio and lowered its
risk profile. If on the one hand the
change brings about some pressure
on net interest income, on the other
it allows a strong dip in NPL ratio and
credit provisions, which leads to a more
sustainable growth in the end.
As a result of an improvement in the
quality of the loan portfolio, NPL ratio
has fallen sharply in 2013.
Throughout the year, the NPL ratio
(over 90 days) fell by 1.8pp, to 3.7%.
With the fall in NPL ratio and a jump in
loan recovery, the reduction of doubtful
accounts in the period recorded an
11.4% improvement while decreasing
the cost of credit and favoring healthy,
efficient growth.
Efficiency
Operational efficiency is important
both from the client's viewpoint, who
expects quick, efficient services, and
the financial viewpoint, under the
assumption of a favorable relationship
between revenues and expenses.
In Santander's vision, the best way
to cater to both factors is by delivering
to the client a bank that's easy to use
while meeting client needs quick and
easy, and to employees a workplace
that's easy to operate with potential
for gains in commercial productivity.
In 2013 Santander Brazil dealt with
this issue by streamlining processes
while investing massively in systems,
digital platforms and in training, in
addition to a strict control of costs,
with growth rates below inflation.
Among the main achievements are
the completion of a new Data Center,
located in Campinas (São Paulo),
which raises the Bank's technology
bar (see more details in Intangible
Assets); approximately R$ 108 million(1)
in T&D; and in costs, which grew by
half the inflation rate only.
22 Annual Report 2013
(1) To learn more on individual conditions offered, please visit http://tinyurl.com/reanual1.
(2) The item Training & Development recorded the amount of R$ 140 million in the financial statements, as it also includes recruitment costs. The financial statements can be viewed
at www.santander.com/ir, in the Financial Information section, at Results Center.
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