2013 Annual Report
ECONOMIC/FINANCIAL INFORMATION (BR GAAP)
Turnover
Credit turnover volume totaled R$ 19.7 billion in 2013,
up 11.1% in 12 months. Debit volume came to R$ 32.1 billion,
growth of 13.3% in 12 months.
I TURNOVER - CREDIT AND DEBIT CARDS
(R$ Billion)
183.7
161.1
137.6
110.9
95.7
83.8
65.4
72.8
53.8
2011
2012
2013
Debit Cards
Credit Cards.
Credit Card Portfolio
The total credit card portfolio came to R$ 17.6 billion
in 2013, up 6.3% YoY. The financed portfolio totaled
R$ 4.7 billion, 2.6% down in 12 months.
I CARD PORTFOLIO BREAKDOWN
(R$ Billion)
17.6
16.5
14.5
12.9
11.7
10.2
Accounting and managerial results reconciliation
To provide a better understanding of the results in
BR GAAP, this report presents the Managerial Income
Statement, which includes the adjustments made
to the Accounting Income Statement. Note that
these adjustments have no effect on net profit.
All information, indicators and comments relating
to the Income Statement in this report consider the
managerial results, except where indicated otherwise.
The 2012 figures were retrospectively impacted by the CVM
Deliberation 695, issued by CVM on December 13th, 2012,
which deals with employee benefits, mainly pension plans.
ACCOUNTING AND MANAGERIAL RESULTS RECONCILIATION (R$ MILLION)
NET INTEREST INCOME
Allowance for Loan Losses
Reclassifications
Non
2013
Tax Effect Credit Amortization
Accounting of Hedge (1) Recovery (2) of goodwill(3)
29,749 (2,367)
2,507
(14,319)
(2,507)
Profit
sharing
(218)
(92)
Recurrent
Events (4) Managerial
29,827
(11,720)
2013
4.3
4.8.
4.7
Dec/11
Dec/12
Dec/13
Non financed
Financed
NET INTEREST INCOME AFTER
LOAN LOSSES
15,430
(2,367)
(310)
18,107
Fee and commission income
10,674
10,674
General Expenses
(19,084)
(3,637)
958
(108)
(16,297)
Card Base
The credit card base grew 7.6% in 12 months, reaching
15.7 million cards. Debit cards totaled 37.5 million in 2013,
up 11.1% YoY.
CARD BASE
(Million)
Personnel Expenses + Profit Sharing
Administrative Expenses
(6,283)
958
(7,241)
(12,801)
(3,637)
(108)
(9,055)
Tax Expenses
(2,988)
199
(63)
(3,124)
53.2
48.4
Investments in Affiliates and Subsidiaries
20
20
41.7
Other Operating Income/Expenses
(3,648)
(539)
(3,109)
37.5
33.8
29.3
OPERATING INCOME
Non Operating Income
405 (2,169)
1,258
(3,637)
958
(1,020)
6,272
1,020
238
12.4
14.6
15.7
Dec/11
Dec/12
Dec/13
Debit Cards
Credit Cards
NET PROFIT BEFORE TAX
1,662
(2,169)
(3,637)
958
6,510
Income Tax
1,651
2,169
(518)
Profit Sharing
(958)
(958)
Rating Agencies
Minority Interest
(248)
NET PROFIT
2,107
(0)
(3,637)
(248)
5,744
Santander is rated by international agencies and the ratings awarded reflect different factors, including operating
performance, the quality of management and financial soundness, in addition to other factors in relation to the financial
sector and economic environment where the Bank operates. The following table shows the ratings awarded by the three
major rating agencies:
(1) Fiscal Hedging: in accordance with Brazilian tax regulations, gains (losses) due to the foreign exchange rate variation in relation to investments in foreign currency is not taxable (deductible). This
tax treatment leads to foreign exchange rate exposure in relation to taxes. A foreign exchange rate hedge position was defined with the aim of protecting net income against foreign exchange
rate variations related to this foreign exchange rate exposure for taxes.
(2) Loan Recovery: Reclassification of the line of income from credit transactions for loan provisions.
(3) Amortization of goodwill: Reversal of goodwill amortization expenses.
(4) Non-recurring items: For more details, please see page 30 of the 2013 BR GAAP - EARNINGS, at www.santander.com.br/ir, Financial Information / Results Center.
RATINGS
Global Scale
Local Currency
Long-
Rating Agency
term
Short-
term
Foreign Currency
Long-
term
National Scale
National
Short-
term
Long-
term
Short-
term
AAA (bra)
Fitch Ratings (outlook)
BBB (stable)
F2
BBB (stable)
F2
F1+ (bra)
(stable)
brAAA
Standard & Poor's (outlook)
BBB (negative)
A-2
BBB (negative)
A-2
brA-1
(negative)
Moody's (outlook)
Baa2 (stable)
Prime-2
Baa2 (stable)
Prime-2
Aaa.br (stable)
Br-1
Ratings awarded as published in the respective rating agencies' reports: Fitch Ratings (May 28, 2013); Standard & Poor's (June 7, 2013) e Moody's (October 3, 2013).
66 Annual Report 2013
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