Banco Santander (Brasil) S.A.
Q2 2021 Earnings Call Transcript

Published: 28 Jul 2021

[Company Representatives Sergio Rial - Chief Executive OfficerAngel Santodomingo - Chief Financial OfficerGustavo Sechin - Head of Investor RelationsConference Call Participants Gustavo Schroden - BradescoPedro Leduc - Itaú BBAFlavio Yoshida - Bank of AmericaThiago Batista - UBSJorg Friedemann - CitibankJorge Kuri - Morgan StanleyMarcelo Telles - Credit SuisseDomingos Falavina - J.P. MorganOperator Good morning and thank you for waiting. Welcome to the conference call to discuss Banco Santander Brasil SA's Results. Present here Mr. Sergio Rial, CEO, Mr. Angel Santodomingo, CFO, and Mr. Gustavo Sechin, Head of Investor Relations. All the participants will be in listen-only mode during the presentation, after which we'll begin the question-and-answer session when further instructions will be provided. [Operator Instructions].The live webcast of this call is available at Banco Santander's Investors Relation website at www.santander.com.br/ri where the presentation is also available for download. We would like to inform that the questions received via webcast will have answering priority. [Operator Instructions]. Each participant is entitled to ask one question.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, 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 as 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. Sergio Rial. Please, Mr. Rial, you may proceed.Sergio Rial Well, thank you very much. I would like to start by again thanking everyone. I'd like to also give a welcome to Gustavo, who is our new Head of Investor Relations joining us in this important call, and of course our CFO, Angel will then take this conversation further with all of you.The reason why I'm here is to at least to try to provide some context for the news on my migration to the Board. A couple of thoughts and parenthesis:]

One, I'm not leaving Santander as a Group. I remain very much committed to both, Santander Brasil, but also to Santander Group. Second, succession has been really planned over the last two years. We had an extensive and well thought process, very much linked with the Local Board and the Group Board, primarily also due to the materiality of Brazil and South America for the whole group. We had an extensive research, both externally and internally. I started the process since the day I joined the company as a CEO. So there were a number of names on the list, and then I'm very glad that as a CEO they are very much supported by the Board, which is the Board's prerogative at the end, the succession. I was able to actually indicate the person and the executive that I think will take Santander Brasil in a second phase. Mário has been part of the team for the last four years, part of the ExCo. I had the opportunity to test, see, observes, challenge, not only him, but also other potential names, and I'm very much convinced that on the back of his technical background, leadership style, commitment and an incredible unlimited curiosity, let alone that he's got more ambition than I do for the business overall, I think I'm going to be leaving the organization next year in very good hands. We have a very clear process that until the end of this year I am leading the organization, so there's absolutely no confusion whatsoever, and as from, I would say probably more November, we'll start what I would call more of a gradual hand over of the keys, but the process is clear. He takes over with Carlos Rey for South America on January 1, and in the meantime we still have a year to deliver and we want to deliver the best year in the history of the company, and more importantly than this year is to create the basis for a phenomenal solid 2022. I think we have proven repeatedly that we are committed to profitable growth. I think we have proven repeatedly that despite regulatory changes, despite all the unknowns, we have been in a very humble manner, because we always say, we don't know what the scenarios are going to be. The only thing that we know is that we got to be prepared to any scenario. So I think the cultural component of Santander is very, very strong and I've been saying that from the beginning. Perhaps if there is a legacy that I leave, is this big world which has become a bit of a cliché. But if there are certain aspects of Santander today are, it's very clear cultural traits and what would they be from our perspective