Banco Santander (Brasil) SA (BSBR) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

July 28, 2022 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Gustavo Sechin

Hello. Very good morning, everyone. And thank you all for joining us this morning to our Second Quarter Conference Call. I am Gustavo Sechin, Head of Investor Relations of Banco Santander Brasil. Here with me are our CEO, Mr. Mario Leão; our CFO, Mr. Angel Santodomingo, and our Investors Relation teams.

Speaking first today is Mario, our CEO. He is going make some comments regarding our strategy, and he will be followed by Angel, our CFO with comments over our quarterly results. After that, we are going to open for a Q&A session. Just a reminder, this presentation is available in our website, and please refer to disclaimer on it.

At this time, I would like to turn over the call to our CEO, Mario. Please go ahead.

Mario Leão

Thank you very much, Gustavo. Thank you very much all for joining. It's a pleasure to be here again for second time. So I'll kick-off with strategy and then Angel complement with the numbers and then we'll jointly cover the Q&A. So, I'll basically kick off with an update on the precautionary measures we have taken since September 21. And then I'll reinforce some of the strategic priorities I have outlined in the first quarter and for the remainder of the year, upon which we are already working on as a group. So our ability to anticipate trends is resulting better vintages as expected. And as they start to gain relevance inside the portfolio, that should translate into a more controlled asset quality. The delinquency ratios remain stable quarter-over-quarter with total delinquency at 2.9%, still below pre-pandemic levels.

Also incorporating new variables in risk models allowed us to increase the origination of secured loans, contributing to the maintenance of a strong balance sheet. We will give you more examples later, but for example, in consumer finance, in August, in the second quarter, we have increased our production share from roughly 18% to 22%, and therefore maintaining our overall position as market leader with a 24-ish percentage in terms of market share. Besides all the challenges the macro scenario has been imposing on all of us, we were able to maintain our profitability above 20%, reaching a 20.8% ROE and also a very low efficiency level, our second best ever.