2013 Annual Report
ECONOMIC/FINANCIAL INFORMATION (BR GAAP)
Credit/funding ratio
The credit/funding ratio reached 102.4% in December 2013,
down 4.0 p.p. in twelve months. This improvement reflects
the higher growth of funding from clients in relation to
loan portfolio.
FUNDING X LOANS (R$ MILLION)
The liquidity metric adjusted for the (high) reserve
requirements and medium/long term funding stood
at 93.5%, down 3.9 p.p. in 12 months.
The bank has a comfortable liquidity position and a stable
and adequate funding structure.
According to the new regulatory capital standards in
Brazil, the amount of goodwill to calculate the Bank's
regulatory capital will be deducted from the capital base
according with implementation phase-in of Basel III
in Brazil.
In addition, in September we announced certain initiatives
to establish a more efficient capital structure without altering
the Bank's solvency level. Through a pioneering transaction
in the Brazilian market, we replaced R$ 6 billion of Santander
Brasil's equity with an equal amount of additional Tier I and
Tier II capital. The main objectives are to: (i) reduce the cost
of capital; (ii) Increase return on equity while maintaining
the same degree of solvency; and (iii) ensure a more flexible
capital structure in terms of currencies and composition.
2013
2012
Change 2013x2012
Funding from clients (A)
222,067
199,193
11.5%
OWN RESOURCES AND BIS (R$ MILLION)(1)
(-) Reserve Requirements
(35,619)
(34,310)
3.8%
2013
Funding Net of Reserve Requirements
186,448
164,883
13.1%
Tier I Regulatory Capital
63,595
2012
65,213
Change 2013x2012
-2.5%
Borrowing and Onlendings
11,838
9,507
24.5%
Principal Capital
63,595
Subordinated Debts
8,906
11,919
-25.3%
Tier II Regulatory Capital
2,701
5,070
-46.7%
Offshore Funding
36,083
31,218
15.6%
Adjusted Regulatory Capital (Tier I and II)
66,296
70,283
-5.7%
Total Funding (B)
243,275
217,528
11.8%
Required Regulatory Capital
37,936
37,171
2.1%
Assets under management(1)
144,942
134,935
7.4%
Total Funding and Asset under management
388,218
352,463
10.1%
Adjusted Credit Risk Capital requirement
34,200
32,449
5.4%
Total Credit (C)
227,482
211,959
7.3%
Market Risk Capital requirement
2,048
2,951
-30.6%
C/B (%)
93.5%
97.4%
Operational Risk Capital requirement
1,689
1,770
-4.6%
Basel Ratio
19.2%
20.8%
-1.6 p.p.
C/A (%)
(1) According to Anbima criterion.
102.4%
106.4%
Tier I
18.4%
19.3%
-0.9 p.p.
- Principal Capital
18.4%
Tier II
0.8%
1.5%
-0.7 p.p.
BIS Ratio
(1) Does not consider the eventual impacts of the Capital Optimization Plan.
The BIS ratio totaled 19.2% in December 2013, a decrease
of 1.6 p.p. over December 2012.
The BIS ratio was impacted mainly by the implementation,
in October 2013, of the new rules related to the definition
of capital and the regulatory capital requirements with the
purpose of implementing in Brazil the recommendations
of the Basel Committee on Banking Supervision (Basel III).
The new rules were released by resolutions 4,192 and
4,193 and Circular 3,644 and, subsequently amended
respectively by resolutions 4,278 and 4,281 and Circular
3,679, published in October 2013, establishing the rules for
calculating the minimum Regulatory Capital requirements,
Tier I and Principal Capital. The minimum Regulatory
Capital requirements remains at 11% and the Tier I
requirement is 5.5% and Principal Capital is 4.5%.
According to the new rules on regulatory capital in Brazil,
the value of goodwill for the calculation of capital base
will be deducted from the capital base according to the
"phase-in" of implementation of Basel III in Brazil.
BIS RATIO
(%)
24.8
2.3
20.8
1.5
19.2
0,8
Tier II
22.5
19.3
18.4
Tier I
Cards
Santander closed 2013 continuing with its strategy
of expanding its share of the credit card market and
launching innovative and advantageous products for
its clients.
In order to strengthen relations with our clients, in 2013
we focused on expanding Santander Esfera, which offers
our customers promotions and discounts with our
chosen partners on a daily basis. In November, we
began a partnership with the Easy Taxi application and
included the Azul airline in the SuperBônus catalogue.
We are continuing to work closely with our account
and non-account holders, providing differentiated product
offerings developed for their specific needs, enabling
us to expand our customer base, while always seeking
to play a greater role in their financial planning.
64 Annual Report 2013
Dec/11
Dec/12
Dec/13
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