Banco Santander (Brasil) S.A. (NYSE:BSBR) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 08:00 am ET


Banco Santander (Brasil) S.A. (NYSE:BSBR) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, and thank you for waiting. Welcome to the conference call to discuss Banco Santander (Brasil) S.A. results. Present here Mr. Angel Santodomingo, Executive Vice President, Chief Financial Officer; and Mr. Andre Parisi, Head of Investor Relations. [Operator Instructions] After, which we will begin the question-and-answer session. [Operator Instructions] The live webcast of this call is available at Banco Santander's Investor Relations website, at, where the presentation is also available for download. We would like to inform that questions received to the webcast will have answering priority. [Operator Instructions]

Before proceeding, we wish to clarify that forward-looking statements may be made during the conference call relating to the business outlook of Banco Santander (Brasil), operating and financial projections and targets based on the beliefs and assumptions of the Executive Board as well on information currently available. Such forward-looking statements are not a guarantee of performance. They involve risks, uncertainties and assumptions as they refer to future events and has depend on circumstances that may or may not occur. Investors must be aware that general economic conditions, industry conditions and other operational factors may affect the future performance of Banco Santander (Brasil) and may cause actual results to substantially differ from those in the forward-looking statements.

I will now pass the word to Mr. Andre Parisi. Please, Mr. Parisi, you may proceed.

Andre Parisi

Good morning, everyone. It's my pleasure to welcome you to Santander Brasil's second quarter 2020 earnings conference call, which will be presented with more details by our CFO, Mr. Angel Santodomingo.

Now I turn it over to him.

Angel Santodomingo Martell

Thank you, Andre and good morning, everyone. Thank you all for joining us this morning to discuss our second Q '20 earnings results. As has been in the past, I will start the presentation by talking about our strategy and key messages, followed by the results of both Santander Group and Santander Brasil highlights on the quarterly earnings. And finally, I will conclude with final remarks.

So starting in Slide 4. We start by showing the evolution of main figures of our balance sheet and P&L during the last both quarter and year. I think this is a key slide to understand how the business underlying performance is happening. We have been growing strongly both on the asset and the liability side during the last year, as you can see, 21% and 23%, respectively, gaining market share.

But at the same time, being highly efficient, given, as you may see, that we have achieved a historical minimum of 35.7% in the efficiency ratio, a strong improvement compared to last quarter and last year. But an important part of this trend is, how did we grow on the asset side? As I have mentioned already and we, as a bank, have mentioned already one year ago, approximately, we have been selective in losing market share in those higher risky products like cards, overdraft or personal loans, as you may see in the slide, with significant decreases in market share, while at