2013 Annual Report slide image

2013 Annual Report

29 million CLIENTS ORGANIZATIONAL PROFILE A SPANISH ACCENT WITH A BRAZILIAN SOUL With total assets of R$ 485.9 billion, Santander Brazil is the third largest private sector bank in the country. The model adopted locally and in other countries is standalone subsidiary company in both capital and liquidity, in line with the operating characteristics and regulation for each market, in such a way as to segregate the risk among different units. In the last four years Santander Brazil results represented the largest individual contribution to the Santander Group global results; this is the measure of the strategic importance of the Brazilian operations worldwide. In 2013 the local operations represented a 23% contribution to global results. While Santander Brazil is recognized both locally and abroad for its commitment to sustainable development, the Bank was elected by the British newspaper Financial Times and by IFC (International Finance Corporation) as the most sustainable bank in the Americas in 2013. In the same edition of the award, Santander Group was elected the Sustainable Global Bank of the Year. The Mission of Santander Brazil, as approved by the Executive Committee and the Board of Directors, is "To be our customer's choice for being the simple and safe, efficient and profitable bank, that constantly seeks to improve the quality of every service, with a team that enjoys working together to conquer everyone's recognition and trust." With a BIS ratio of 19.2%, Santander Brazil is the soundest among the large local banks. seja Bem-vindo Santander 3,566 ch branches AND MINI BRANCHES COMPRISED OUR COMMERCIAL NETWORKAL With the inception of its operations in the local market in 1982, Santander Brazil is the third largest private sector bank in the National Financial system, with total assets of R$485.9 billion and 29 million clients. The Bank relies on a team of approximately 50,000 employees and has a footprint in all regions of the country via a comprehensive structure comprised by 3,566 branches and mini branches (PABS) and 16,958 thousand ATMs, including regional offices, technology centers, customer service and areas for cultural activities. G4-6 G4-8 Santander Brazil operates into two structures: Commercial Bank, which comprises Retail activities such a services to Individuals and SMEs, and Wholesale, focused on larger enterprises and stock market trading. G4-3 This structure is in charge of providing financial services such as checking accounts, credit, financial consultancy and distribution of insurance and investment products for clients in all segments. G4-4 With principal offices in São Paulo, the Brazilian operations form integral part of the Santander Group, with headquarters in Spain, the main financial conglomerate in the Eurozone with a large footprint in Latin America. G4-5 THE ROLE OF BANKS IN SOCIETY *By José Cláudio Securato Every day economic agents use cash to conduct their activities. Part of these agents has a surplus, i.e., excess cash, that may be used to build savings. As an example, governments collect taxes and manage them; small, medium and large enterprise save money to plan future investments; individuals save money to make their dreams come true. Therefore, savers save money to eventually spend it, invest it while achieving their plans for the future. On the other hand, there are debtors, i.e., economic agents that spend more cash than they actually own and therefore need bank loans to offset their accounts. As an example, governments take loans to invest in cities, states and the country; small, medium and large-sized firms borrow money to make additional investments in new plants, stores and inventories; and individuals take loans to achieve their dreams now such as buying a home, finance education, vehicles, trips, get married and have children. Therefore, debtors can achieve their investment plans by borrowing money. What is the role of a bank in this process? The role of a bank is to find agents that own excess cash and those that need cash. Thus, it has been said that the main function of a bank is to be the middle person between the savings generated by agents with a surplus of cash (savers) and agents that need cash to invest (debtors). Banks can also use their equity (provided by shareholders) in loans, thereby increasing the volume of cash for investment. The bank charges interest paid by debtors as compensation for the cash borrowed and this allows debtors to have immediate access to capital. On the other hand, the bank pays for the cash deposited by savers by paying interest as a premium to save their cash. Throughout time, savers will have additional cash upon receiving interest and may make their own dreams come true. The spread is the main compensation by the bank and is the difference between the interest rates it charges from debtors and the interest rates it pays to savers. Banks work beyond building bridges between savings and investments; they provide services to society such as checking accounts, investments, pension funds, cards, and insurance, to name a few. All things considered, it can be said that: banks contribute to the growth of the Gross Domestic Product (the GDP) and to create jobs, and therefore accelerate the development of the country. 10 Annual Report 2013 *José Cláudio Securato earned his PhD in Business Administration from the FEA-USP and is the President of Saint Paul Escola de Negócios 11
View entire presentation