2013 Annual Report
BUSINESS PERFORMANCE
In the institutional investor segment the Bank
attained significant results despite the market
slowdown. As a result of an increase in the client
base, the Bank posted a 7.9% revenue growth YoY.
Among the key advancements is the implementation
of an e-trading tool which streamlined processes
while generating new opportunities and the launch
of a commodity execution platform.
Global Transaction Banking (GTB)
The Global Transaction Banking (GTB) area includes
offices such as Cash Management, Trade Finance,
Local Assets and Custody, focused on the Bank's
corporate clients.
In 2013, due to a more selective credit scenario,
Cash Management products were on the limelight
and this led the Bank to innovate its product
portfolio such as a new solution for Court-ordered
cash seizure management, the Mobile PJ solution
and the Cash Management solution for exporters.
As a result the area posted an average growth
of 29.3% YoY in the transaction volume both
in payments and collections.
With the activities of Trade, Export & Commodity
Finance (TECF), in 2013, Santander became the
2nd largest private-sector bank in Trade Finance,
due to a combination of factors such as the
improvement of liquidity in foreign currencies,
the wide range of products and services and the
effort in asset generation. Among the innovations
in the year we highlight the first transaction in local
currency with an Export Credit Agency (ECA), in
connection with a loan for a cement plant; a loan
for the construction of a hydro power plant in
Angola; and the development of new products
for clients such as a Letter of Credit in Chinese Yuan
and local currency and indexed transactions using
long-term interest rates ("TJLP") and the consumer
price index ("IPCA"), to name a few.
As for the Local Assets office,
the BNDES onlending loans was
the main highlight of the year,
with a 50% growth YoY; this led
to a 2p.p. growth in market share.
These outcomes reflect the
implementation of a strategic
plan in all Bank segments,
including work flow reviews
to streamline the agreement
approval process. In Agricultural
Loans, the Bank allocated all
mandatory loans (R$ 5.9 billion)
in more than 9.2 thousand
agreements in the crop year
2012/2013 (July-June). In the
Wholesale Loans segment,
Santander Brazil boasts
a portfolio of R$ 58 billion
in 2013 (11% growth YoY).
In Custody, the Bank was
considered as the service provider
with the highest level of client
satisfaction in the Brazilian market
according to an annual survey
conducted by the Global
Custodian magazine. In 2013,
the platform for processing the
portfolio for non-residents was
delivered, and this allowed the
Bank to operate in a market with
assets in excess of R$ 1 trillion,
while consolidated the franchise's
name among the key clients in the
Private Equity segment.
Corporate Finance
The Corporate Finance Office, in
charge of restructuring operations
and the financial advice activities
to the Bank's corporate clients, is
divided into two areas: Equity
Capital Markets (ECM), in charge
of clients' public offers in the
stock market; and M&A (Mergers
and Acquisitions), in charge of
mergers & and acquisitions
operations.
In 2013, the ECM area was the
coordinator of a number of stock
offerings in Brazil; like the IPO
transactions for Via Varejo S.A.,
Ser Educacional S.A., Smiles S.A.
and Alupar Investimentos S.A.,
and the Public Offer for the
acquisition of Arteris S.A.
shares. Santander also had
a key role in other six IPO/follow-on
transactions involving the following
Real Estate Investment Funds:
Santander Agências FII, General
Shopping Ativo e Renda - FII, TB
Office and BTG Pactual Corporate
Office Fund.
In Mergers & Acquisitions, the Bank
ended 2013 in the 4th position in
the Brazilian ranking of transactions
announced in the year, according to
Bloomberg, with a total volume of
US$19.8 billion in 12 operations;
the Bank highlights the sale
of a 20% interest owned
by Petrobras in the stock of
Companhia Energética Potiguar
S.A. to Global Participações em
Energia S.A.; the sale of 100%
interest of Marfrig Alimentos S.A.
in Seara Brasil and the Uruguay
leather division of Marfrig to JBS
S.A.; the sale of seven windmill
farms by Casa dos Ventos to
Companhia Paranaense de Energia -
Copel; the sale of Petróleo
Brasileiro S.A. shares - Petrobras,
equivalent to 49% interest in Brasil
PCH, to Cia Energética Minas
Gerais
Cemig; and the sale
of Telefonica Brasil S.A.'s MMDS
client portfolio to SKY.
4th
IN THE BRAZILIAN RANKING
OF ANNOUNCED TRANSACTIONS,
ACCORDING TO BLOOMBERG
86 Annual Report 2013
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