2013 Annual Report slide image

2013 Annual Report

BUSINESS PERFORMANCE Cards Credit and debit cards had a key role in the review of the Bank's value offer for individuals early in the year, with the purpose of meeting specific needs for clients with different profiles while increasing client base loyalty and transactionality. EASY 23A QAQ SANTANDER Pedr Taxi In addition to the same segmentation and rationale used by the Bank in the Card sector, the service packages we launched in February (i.e., Contas Combinadas) helped increase the distribution and use of credit and debit cards. By the end of December, Santander had 53.221 million active cards, a 10% growth YoY 2012. For Santander Select clients, in the high-income bracket, the Bank play was the Dupla Oferta Santander Unique, with two cards for the price of one and a shared credit limit, which allows the client to use his/ her preferred card, no need to swap limits. Another innovation was the Total Parcelado program. Designed to organize the client's financial affairs, for an improved organization and spending control, this product allows purchases in installments via credit cards, including installments coming due, at reduced rates and fixed amounts and a maximum of 24 installments. The year of 2013 was also a year of innovation. In order to encourage the use of credit cards, the Bank executed a partnership agreement with Easy Taxi while launching the Santander Meia Bandeira program. The project includes the payment by the Bank of 50% of the taxi fares when using the app in the greater São Paulo area between 8pm-6am, if paid with Santander credit cards. This initiative contributed with a 14% expansion in card revenue in 2013, to R$183.6 billion. Acquiring In 2013 the Bank made an effort to both expand and consolidate its share in the acquiring market, i.e., processing transactions via POS. The relevant fact in this area was the structuring and acquisition of GetNet, a former partner of the Bank in the segment by providing the technology platform for the transactions. The new agreement, to be completed in 2014, is set to strengthen the Bank's position in this market while allowing the Bank to offer products and innovations that facilitate the daily transactions of SMEs. In the client base of Santander Brazil, SMEs were also the most benefited by the agreement with the Swedish firm iZettle. The partnership brought to the country a pioneering technology that allows firm owners to turn cell phones and tablets in POS. One of the main advantages in this solution is that there are no fixed costs such as monthly charges, rent or minimum usage rates. The client pays charges according to the amount involved in each transaction, and that is all. The Bank recorded a 67% growth in revenue in the acquiring segment in 2013, enjoying a market share of 5.8% compared to 4.5% YoY. Real Estate The Real Estate Business area operates not only in the mortgage business for individuals and builders but also in other areas in connection with the sector, such as real estate funds, asset securitization (transformation of real estate agreements into securities traded in the secondary market). Mortgage loans are strategic for the Bank, as it is a low risk asset with high power for building client loyalty; it was the loan product with the highest growth rate in 2013, a 32.9% jump YoY in the Individual segment. In order to attain and take on these growth rates, the Bank had the support of initiatives such as the WebCasas, an online platform that brings together realtors and developers, and also the use of technologies that make loan assessment and concession processes faster. One of the innovations was the development of management and scanning of processes, thereby allowing increased control at every step of the process. The year also witnessed the creation of a Real Estate Fund, the first for the Bank, backed on mortgage loan agreements in its portfolio. 32.9% GROWTH IN MORTGAGE LOANS FOR INDIVIDUALS THE SUSTAINABILITY PROGRAM FOR BUILDERS G4-FS5 In 2013, the Bank maintained its investments in the Sustentabilidade em Construção Civil (the Sustainability Program for Builders). In an effort to engage the sector, the Bank promoted the sharing of good practices adopted by both the Bank and the market among developers, builders, clients and suppliers. The exchange of experiences takes place in meetings and in the Program's online community. On the other hand, the Obra Sustentável (Sustainable Worksite) is dedicated to recognizing initiatives financed by the Bank that figure out solutions for social and environmental interferences caused by the new building. The development that is in compliance with the program's concepts and criteria is awarded a recognition plaque. In order to retain the plaque, periodical reviews are conducted to check whether the construction site remains as one of the buildings recognized by the program. The program relies on a Good Practices Guide, and an online course on Sustainable Buildings. 74 Annual Report 2013 1. Learn more - visit www.webcasas.com.br 75
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