The following is a summary of the Banco Santander (Brasil) S.A. (BSBR) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Banco Santander Brasil reported a Q3 net profit of BRL 3.7 billion, marking a two-digit growth both quarter-on-quarter and year-on-year.

• The Return on Average Equity (ROAE) stood at 17%, indicating substantial annual and quarterly growth.

• Net Interest Income (NII) grew by 16% compared to the same period last year, with funding NII client, NII market, and NII contributing significantly.

Business Progress:

• The bank has been actively pursuing a diversification strategy, moving towards a more sustainable and diversified mix in its operation.

• Significant investments are directed towards technology to support operations and improve client services, including a new investment portal and a AAA advisory line.

• Consumer Finance continued to show robust performance with a 20% year-on-year portfolio growth and an expansion in auto loans by 4.7% during the quarter.

Opportunities:

• The bank is focusing on enhancing transactionality with clients, deepening engagement and increasing loyalty through product offerings like cards that saw a 10% year-on-year spending increase.

• There is an ongoing strategic shift towards serving medium-sized companies and SMEs more effectively, including launching a new service model and enhancing face-to-face interactions with clients.

Risks:

• Adjustments in portfolio due to changes in profitability and shifting towards more profitable segments and clients might impact the pace of asset growth.

• Exposure to market risks due to economic fluctuations, especially interest rate adjustments impacting profitability and cost of credit.

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