2013 Annual Report
GLOSSARY
Santander
Carbon credits: Certificates issued to an enterprise or organization which has
reduced their emissions of greenhouse gases (GHG). The generators of carbon
credits may sell them to enterprises which exceed their emission targets or which
voluntarily offset their emissions. The carbon market is a mechanism to promote
and coordinate the reduction in GHG emissions.
Scope 1 CO2 emissions: Emissions directly related to the company's operations
arising from activities involving generators, the burning of fuels, mobile fleet, fire
extinguishers and air conditioning systems.
Recurrence Ratio: Consists of the ratio between fee income and the Bank's
overall expenses. A recurrence rate of 70% means the company covers 70%
of its costs with this revenue line.
Gross Interest Income: It shows the difference between net interest income and
expenses arising from financial brokerage activities (for additional information on
financial brokerage, see the infographics on page 15). The figures do not include
loan provisions in financial brokerage costs.
ATTACHMENT
GRI Content Breakdown
Scope 2 CO2 emissions: emissions indirectly related to the company's operations
arising from the consumption of energy purchased from the National Grid (SIN).
Scope 3 CO2 emissions: indirect emissions arising from the company's activities,
but from sources which do not belong to or which are not controlled by the
company. These include emissions in relation to business flights and the production
of paper and other materials used in the company's operations.
PABS (Banking Service Stations): A service outlet located on the premises
of a government administration building or private enterprise. These service outlets
are always subordinate to a branch in the same municipality. They may use
different opening hours.
PDD: Provisions for non-paying loans and bad debtors.
THIS SECTION PROVIDES READERS WITH A BREAKDOWN OF THE 14 ITEMS DEEMED TO BE MATERIAL IN THE NEW
SANTANDER BRAZIL RELEVANCE MATRIX CONDUCTED IN 2013. THE TEXT PROVIDES A RESPONSE AS TO WHY
ANY SUCH ITEMS ARE MATERIAL AND INCLUDES THE MANAGEMENT, PRACTICES AND COMMITMENTS IN PLACE
IN CONNECTION THEREWITH.
Private Equity Funds: Also known as Share Investment Funds. They generally
invest in the management of private sector enterprises in an attempt to increase
the value of the firm in the medium term and then sell the interest at a profit.
The Basel Ratio: This ratio illustrates the ratio between the loans granted and
the Bank's equity level. The Central Bank requires a minimum Basel Index of 11%,
which means a financial institution needs at least R$ 11 of equity for each
R$ 100 loaned.
Coverage Ratio: This ratio illustrates the relationship between the loans granted
by a bank and the balance of its outstanding portfolio. A coverage ratio of 180%
shows the institution has R$ 1.80 provisioned for each R$ 1 outstanding.
Provisions: Reserves created by banks to cover loss forecast for future periods,
in connection with both client default and legal issues such as lawsuits such
as civil and labor grievances.
Provisions for non-performing loans This metric shows the difference between
loan provisions expenses and any revenues obtained from the activity involving
the recovery of overdue loans.
ROAE: ROAE, or Return on Average Equity, is a measure of profitability. It consists
of net income divided by the average net equity calculated for the same period.
Hence, this shows when the company generates profit on shareholder equity.
Efficiency Ratio: The division of overall expenses by the company's revenues.
An efficiency ratio of 45%, for example, indicates that a bank generates R$ 100
in revenues for every R$ 45 in expenses. The lower the ratio, the more efficient
the company.
136 Annual Report 2013
2.
SOCIAL/
15.
ENVIRONMENTAL
ECONOMIC
PERFORMANCE
40.
CUSTOMER
PRIVACY
RISK AUDIT
18.
EMPLOYMENT
4.
42.
SUPPLIER
PRODUCT AND
SERVICE LABELING
ASSESSMENT
22.
8.
ANTI-CORRUPTION
INDIRECT ECONOMIC
IMPACT
46.
LOCAL
COMMUNITIES
30.
GRIEVANCE
11.
MARKETING
AND COMPLAINT
49.
COMMUNICATIONS
MECHANISMS
TRAINING AND
EDUCATION
13.
SOCIAL/PRODUCT
COMPLIANCE
33.
PRODUCT
53.
PORTFOLIO
GREENHOUSE
GAS INVENTORYView entire presentation