2013 Annual Report

BUSINESS PERFORMANCE COMMERCIAL BANKING The activities of the Commercial Network focused on five priorities in 2013: client base and client satisfaction growth; increase in loyalty; increase in efficiency; productivity gains; and people management. Santander SELECT A new Santander Select branch, at Avenida Paulista, in São Paulo One of the strategic elements in the search of these objectives was the review of the value offer and the segmentation for individuals, through the launch of Contas Combinadas and the Santander Select segment (see more on page 23). These new initiatives allow the Bank to deliver more customized offers and services, suitable to client needs, which contributes to increase the loyalty of the existing client base while making Santander more attractive in capturing new account holders. Last year the Bank consolidated changes in the services model for the SME segment, which in 2012 placed on the same manager the responsibility to serve small entrepreneurs both as an individual and as a firm. Supported by these initiatives, the Bank succeeded in increasing both client acquisition and loyalty. In December 2013, the Bank boasted a total of 29.512 million clients, i.e., a growth of more than 2 million clients YoY. On the other hand, the number of Retail clients increased by 200,000 in the second semester only, when the new segmentation was fully in place. In the Commercial Network a highlight is the launch of exclusive branches in the Santander Select segment, with 61 new units, under a new concept that contemplates investment rooms for clients with video conference. Individual Loans In 2013 the Individual segment followed the trend observed in the year before for an increase in share of collateralized products such as Mortgages, Payroll Loans as opposed to revolving credit such as overdraft and credit cards. As of December, the Individual portfolio was comprised by 58.4% of collateralized assets versus 57.5% YoY. The Bank's priority was to design an offer that meets exactly the profiles of different clients. For this purpose, the Bank completed its segmentation for Individuals: launched Santander Select and created Contas Combinadas. Loan Portfolio Breakdown THE BANK LAUNCHED SANTANDER SELECT FOR THE HIGH INCOME SEGMENT, WITH EXCLUSIVE PRODUCTS AND SERVICES, AND CREATED THE CONTAS COMBINADAS FOR THE MIDDLE INCOME SEGMENT GERENTE GERAL Individual Loans/Other - R$ 22.948 billion Individuals - 35% Credit Cards - R$ 17.221 billion TA SANTANDER BRAZIL CONSOLIDATED CHANGES IN THE SERVICES MODEL FOR THE SME SEGMENT WHICH PLACED ON THE SAME MANAGER THE RESPONSIBILITY TO SERVE SMALL ENTREPRENEURS BOTH AS AN INDIVIDUAL AND AS A FIRM 72 Annual Report 2013 SMES -15% Corporate 33% Payroll Loans - R$ 13.719 billion Mortgages R$ 15.702 billion Leasing/Vehicles - R$ 3 billion Agribusiness - R$ 2.740 billion Consumer Finance 17% 73

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