Banco Santander Brasil | Latin America 2Q26 Conference Call Highlights

Research evidence excerpt

Banco Santander Brasil | Latin America 2Q26 Conference Call Highlights

her-risk products toward secured lending, mortgages,

government-backed programs, higher-income customers, and better-quality auto

financing. This repositioning is also weighing on credit-related fees, particularly in

lower-income segments, while higher customer engagement is increasing checking-

account benefits and fee waivers. Offsetting these pressures are stronger trends in

cards, consortiums, insurance, and other non-credit businesses, supported by

improving customer engagement and higher card spending through Santander

Rewards. Management emphasized that maximizing near-term revenue growth is

not the objective; avoiding future credit losses remains the priority.

Mass Market. Management stressed that weakness in the low-income segment

reflects broader pressure on Brazilian household finances rather than weaker

customer engagement or lower banking primacy. Santander does not plan to

compete aggressively in unsecured lending for customers earning below R$4,000

per month, where it believes other institutions have a structural advantage. Instead,

the bank remains selectively active in products with better risk-adjusted returns,

including payroll-deductible loans and collateralized consumer finance. The pace of

portfolio reduction depends on origination trends, repayment capacity, and

renegotiations, rather than a predefined target.

Desenrola 2.0. Management said Desenrola had only a limited impact on recoveries.

Santander already offered meaningful discounts through its existing collections

strategy for customers willing to repay, reducing the incremental benefit from the Morgan Stanley does and seeks to do business with

companies covered in Morgan Stanley Research. As a result,program.