Banco Santander Brasil S A : Informação Prestada às Bolsas Estrangeiras

Banco Santander (Brasil) S.A.

Parent Company and Consolidated Financial Statements Prepared in

Accordance with Accounting Practices Established by Brazilian Corporate Law, Applicable to Institutions Authorized to Operate by the Central Bank of Brazil

June 30, 2021

Individual and Consolidated Financial Statements | June 30, 2021 | 1

Index
Performance Review ...................................................................................................................................................................................................................................	3
Balance Sheet...............................................................................................................................................................................................................................................	16
Statement of Income ................................................................................................................................................................................................................................	18
Statement of Comprehensive Income...............................................................................................................................................................................................	19
Statement of Changes in Stockholders' Equity - Bank ..............................................................................................................................................................	20
Statement of Changes in Stockholders' Equity - Consolidated .............................................................................................................................................	21
Statement of Cash Flows.........................................................................................................................................................................................................................	23
Statement of Value Added.....................................................................................................................................................................................................................	24
1.	General Information ......................................................................................................................................................................................................................	25
2.	Presentation of Financial Statements.....................................................................................................................................................................................	25
3.	Significant Accounting Policies.................................................................................................................................................................................................	26
4.	Cash and Cash Equivalents .........................................................................................................................................................................................................	34
5.	Interbank Investments ..................................................................................................................................................................................................................	34
6.	Securities and Derivatives Financial Instruments ..............................................................................................................................................................	36
7.	Interbank Accounts........................................................................................................................................................................................................................	52
8.	Credit Portfolio and Allowance for Expected Losses Associated with Credit Risk ..............................................................................................	52
9.	Other Financial Assets...................................................................................................................................................................................................................	55
10.	Tax Assets and Liabilities .......................................................................................................................................................................................................	56
11.	Other Assets ................................................................................................................................................................................................................................	61
12.	Dependences Information and Foreign Subsidiary ....................................................................................................................................................	61
13.	Investments in Affiliates and Subsidiaries Subsidiary................................................................................................................................................	63
14.	Fixed Assets .................................................................................................................................................................................................................................	69
15.	Intangibles ...................................................................................................................................................................................................................................	69
16.	Funding .........................................................................................................................................................................................................................................	70
17.	Other Financial Liabilities.......................................................................................................................................................................................................	73
18.	Other Payables ...........................................................................................................................................................................................................................	74
19.	Provisions, Contingent Assets and Liabilities and Legal Obligations - Tax and Social Security ..............................................................	75
20.	Stockholders' Equity ................................................................................................................................................................................................................	79
21.	Related Parties ...........................................................................................................................................................................................................................	81
22.	Income from Services Rendered and Banking Fees ...................................................................................................................................................	89
23.	Personnel Expenses..................................................................................................................................................................................................................	89
24.	Other Administrative Expenses ...........................................................................................................................................................................................	89
25.	Other Operating Income........................................................................................................................................................................................................	89
26.	Other Operating Expenses ....................................................................................................................................................................................................	90
27.	Non-Operating Income..........................................................................................................................................................................................................	90
28.	Employee Benefit Plans ..........................................................................................................................................................................................................	90
29.	Risk Management, Capital and Sensitivity Analysis....................................................................................................................................................	97
30.	Other information..................................................................................................................................................................................................................	101
31.	Subsequent Event ..................................................................................................................................................................................................................	104
Composition of Management Bodies.............................................................................................................................................................................................	104
Declaration of directors on the financial statements...............................................................................................................................................................	107
Directors' Statement on Independent Auditors .........................................................................................................................................................................	108
Audit Committee Report......................................................................................................................................................................................................................	109
Opinion of the Fiscal Council .............................................................................................................................................................................................................	111

Individual and Consolidated Financial Statements | June 30, 2021 | 2

Performance Review

Dear Stockholders:

We are presenting the Performance Commentary to the Individual and Consolidated Financial Statements of Banco Santander (Brasil) S.A. (Banco Santander or Banco) for the semester ended June 30, 2021, prepared in accordance with accounting practices adopted in Brazil, established by the Law of Corporations, in conjunction with the rules of the National Monetary Council (CMN), the Central Bank of Brazil (Bacen) and the document model provided for in the Accounting Plan for National Financial System Institutions (Cosif) and the Securities Commission (CVM) , which do not conflict with the norms issued by Bacen.

The Condensed Consolidated Interim Financial Statements prepared based on the international accounting standards issued by the International Accounting Standards Board (IASB) for the semester ended June 30, 2021 were simultaneously disclosed on the website www.santander.com.br/ri.

1. Macroeconomic Environment

At the end of the second quarter of 2021, Banco Santander observed the median of projections regarding the performance of the Brazilian economy indicating a growth of the Brazilian GDP of 4.85% in 2021, compared to a contraction of 4.06% in the previous year. The projection for 2021 is higher than that observed at the end of the first quarter (3.17%) and, in the Bank's assessment, it was influenced by the recent publication that the actual result observed in that period was beyond the market consensus - the median of the estimates indicated a seasonally adjusted quarterly expansion of 0.9% for the first quarter of 2021. The economic activity data released contrasted with our GDP growth estimate for the previous quarter (we also estimated a 0.9% increase) and changed our expectation that the Brazilian economy will grow 3.6% in 2021. Preliminarily, we changed our GDP growth forecast to 4.9% this year.

Also, in the second quarter of 2021, the Bank witnessed the interannual variation of the IPCA reaching 8.1%, a level well above the target set for 2021 (3.75%) and also higher than the 5.9% projected by Santander for this year. The Bank understands that this inflationary environment and its balance of risks were the motivators for the Central Bank of Brazil to raise the basic interest rate of 2.75% p.a. to 4.25% p.a. between the closings of the first and second quarters of 2021. Santander believes that this approach to the Selic rate increases the chance that inflation will converge to the established targets within the relevant time horizon for monetary policy. In this sense, the Bank projects that the Selic rate will reach 6.50% p.a. at the end of 2021 and 7.00% p.a. at the end of 2022.

Regarding the behavior of the exchange rate, Banco Santander saw the quotation of the Brazilian currency against the US dollar close the second quarter of 2021 quoted at R$5.06/US$. That is, below the price of R$5.63/US$ seen at the end of the previous quarter. This trajectory of appreciation of the real is in line with the Bank's forecast that the exchange rate will end the year 2021 quoted at R$5.25/US$.

The performance of the aforementioned variables took place in the midst of an international environment that the Bank considered favorable and which highlighted the following topics: advances in immunization programs against COVID-19 in advanced economies; faster economic recovery of the world economy; emergence of inflationary pressures and; discussion about the possible reversal of monetary stimuli granted in several economies - with emphasis on the USA. In fact, the themes are intertwined, since the progress in the immunization process - mainly in advanced economies - allowed for a faster recovery in different parts of the globe and generated some bottlenecks in important production chains. In turn, these bottlenecks ended up causing problems in the production of some products - automobiles, for example - and caused a rise in prices that were captured by the inflation indices. Faced with a less relaxed inflationary scenario - albeit caused by some temporary setbacks - the Bank saw a growing discussion about the possibility of reversing the monetary incentive policies that were widely adopted to support demand during the pandemic. For the Bank, this discussion explained the recording of some volatility in asset prices, mainly in the US fixed income market.

In the domestic environment, the Bank understands that the main themes were as follows: lethargy in the immunization program against COVID-19, continuity of the interest rate normalization process; persistence of inflationary pressures; more robust economic activity indices than previously imagined and; reduction of risk perception regarding the Brazilian fiscal framework. For the Bank, the fact that the Brazilian economy showed robust economic growth in 1Q21, despite the worsening of the pandemic scenario and the absence of tax incentives in the period, was a very positive surprise. For the Bank, the performance showed that even the adoption of measures to restrict mobility and the lower mass of income did not prevent the economy from remaining on a path of recovery. For the Bank, this may be the explanation for the extension of inflationary pressures that led the Brazilian monetary authority to signal the continuity of the monetary policy normalization process. Finally, the Bank recognizes that circumstantial elements have resulted

Individual and Consolidated Financial Statements | June 30, 2021 | 3

* Values expressed in thousands, unless otherwise indicated.

in an improvement in the perception of risk regarding government debt in the coming years, as the starting point of its trajectory should be lower than previously imagined. However, the Bank continues to draw attention to the worrying structural dynamics that it could follow in the absence of structural reforms in the near future.

2. Performance

2.1) Corporate Income

Consolidated Income Statements (R$ Millions)		1S21	1S20		annual	2Q21		1Q21		quarter
		changes%			changes %
Financial Income		30,253.1	79,563.5	(62.0)	(7,503.8)	37,756.9	(119.9)
Financial Expenses		(8,898.7)	(79,909.1)		88.9	20,918.0		(29,816.7)		(170.2)
Gross Profit From Financial Operations (a)		21,354.4	(345.6)		6.278.9	13,414.2		7,940.2		68.9
Other Operating (Expenses) Income (b)		(7,528.1)	(6,120.7)		23.0	(3,492.5)		(4,035.6)		(13.5)
Operating Income		13,826.3	(6,466.3)		(313.8)	9,921.7		3,904.6		154.1
Non-Operating Income		28.1	236.6		(88.1)	(1.1)		29.2		(103.8)
Income Before Taxes on Income and Profit Sharing	13,854.3	(6,229.8)		(322.4)	9,920.5		3,933.8		152.2
Income Tax and Social Contribution (a)		(5,926.9)	13,065.9		(145.4)	(5,306.5)		(620.4)		755.3
Profit Sharing		(940.5)	(963.5)		(2.4)	(468.6)		(471.9)		(0.7)
Non-Controlling Interest		(67.9)	(73.0)		(7.0)	(42.6)		(25.3)		68.5
Consolidated Net Income		6,919.1	5,799.6		19.3	4,102.9		2,816.3		45.7
OPERATING RESULT BEFORE ADJUSTED					annual					annual
TAXATION	1S21	1S20		2Q21		1Q21
		variation%			variation%
(R$ Million)
Result before Taxation on Profit and		13,854.3	(6,229.8)	(322.4)	9,920.5	3,933.8	152.2
Participation
Foreign Exchange Hedge		(792.4)	15,447.4	(105.1)	(2,841.9)	2,049.5	(238.6)
Operating Income Before Adjusted		13,061.9	9,217.6	41.7	7,078.6	5,983.3	18.3
Taxation
INCOME TAX	1S21	1S20		annual	2Q21		1Q21		annual
(R$ Million)		variation%			variation%
Income tax and social contribution		(5,926.9)	13,065.9	(145.4)	(5,306.5)	(620.4)	755.3
Foreign Exchange Hedge		792.4	(15,447.4)	(105.1)	2,841.9	(2,049.5)	(238.6)
Adjusted Income Tax and Social		(5,134.5)	(2,381.5)	115.6	(2,464.6)	(2,669.9)	(7.7)
Contribution

The annualized return for the first half of 2021, based on the accounting result on average equity, reached 17.8%, an increase of 0.7 p.p compared to the first half of 2020.

a) Foreign Exchange Hedge of the Grand Cayman and Luxembourg Branches

Banco Santander operates branches in the Cayman Islands and Luxembourg, which are used mainly to raise funds in the international capital and financial markets, to provide the Bank with lines of credit that are extended to its customers for trade financing abroad and working capital. To cover exposure to exchange variations, the Bank uses external funding and derivative instruments. In accordance with Brazilian tax rules, as of January 2021, 50% of the gains or losses arising from the impact of the appreciation or devaluation of the Real on foreign investments started to be computed in the determination of taxable income and in the calculation basis of the Contribution Social on Net Income (CSLL) of the investing legal entity domiciled in the country, while gains or losses on obligations and derivative instruments used as coverage are 100% taxable or deductible. The purpose of these derivative instruments is to protect net income after taxes. As of 2022, all exchange variation will be computed in the IRPJ and CSLL tax base.

The different tax treatment of such exchange differences results in volatility in the operating result and in the tax expense accounts (PIS/COFINS) and income taxes (IR/CSLL), as shown below:

Foreign Exchange Hedge of the Grand Cayman and Luxembourg Branches	1S21	1S20 annual changes%
(R$ Million)

Individual and Consolidated Financial Statements | June 30, 2021 | 4

* Values expressed in thousands, unless otherwise indicated.
Exchange Variation - Profit From Financial Operations	(1,944.4)	19,283.1	(110.08)
Derivative Financial Instruments - Profit From Financial Operations	2,869.3	(35,436.2)	(108.10)
Income Tax and Social Contribution	(792.4)	15,447.4	(105.13)
PIS/COFINS - Tax Expenses	(133.4)	705.7	(118.91)

2.2) Assets and Liabilities

Consolidated Balance Sheets	Jun/21	Dec/20		semiannual
(R$ Millions)		changes%
Current Assets	513,258.1	603,330.9	(14.9)
Long-Term Assets	427,653.9	399,058.1		7.2
Total Assets	940,912.0	1,002,389.0		(6.1)
Current and Long-Term Liabilities	860,176.2	921,914.6		(6.7)
Deferred Income	414.2	355.5		16.5
Non-Controlling Interest	1,297.2	1,150.7		12.7
Stockholders' Equity	79,024.4	78,968.2		0.1
Total Liabilities and Stockholders' Equity	940,912.0	1,002,389.0		(6.1)

2.3) Stockholders' Equity

On June 30, 2021, Banco Santander's consolidated shareholders' equity increased by 0.1% compared to December 31, 2020.

The change in Shareholders' Equity between June 30, 2021 and December 31, 2020 was mainly due to the net income for the semester in the amount of R$6,919 million, the negative equity valuation adjustment (securities and derivative financial instruments) in the amount of R$1,602 million and the capital reduction in the amount of R$2,000 million.

For additional information, see note 20.

2.4) Basel Index

Bacen determines that financial institutions maintain a Reference Equity (PR), PR Level I and Principal Capital compatible with the risks of their activities, higher than the minimum requirement of the Required Reference Equity, represented by the sum of the credit risk and risk portions market and operational risk.

As established in CMN Resolutions No. 4,193/2013 and No. 4,783/2020, until March 2021 the PR requirement was at 10.25%, including 8.00% Minimum Reference Equity plus 1.25% Additional Conservation of Capital and 1.00% of Systemic Additional. PR Level I was 8.25% and Minimum Core Capital 6.75%.

Throughout 2021, the Capital Conservation Supplement goes through two increases, reaching 1.625% in April and 2.00% in October. Thus, in June the PR requirement is 10.625%. Considering 8.00% of Minimum Reference Equity plus 1.625% of Additional Capital Conservation and 1.00% of Systemic Additional, with the requirement of PR Level I of 8.625% and Minimum Principal Capital of 7.125%. By the end of 2021, the PR requirement reaches 11.0%, considering an 8.00% Minimum Reference Equity plus 2.00% Capital Conservation Additional and 1.00% Systemic Additional, with a requirement of PR Tier I and Minimum Principal Capital at the end of 2021 of 9.00% and 7.50%, respectively.

Continuing with the adoption of the rules established by CMN Resolution No. 4,192/2013, as of January 2015, the Prudential Consolidated, defined by CMN Resolution No. 4,280/2013, came into effect.

The index is calculated on a consolidated basis based on information from the Prudential Consolidated, as shown below:

Basel Index%	Jun/21	Dec/20
Basel I Ratio	13.66	14.06
Basel Principal Capital	12.58	12.87
Basel Regulatory Capital	14.75	15.25

2.5) Main Subsidiaries

The table below shows the balances of total assets, shareholders' equity, net income and loan operations portfolio for the semester ended June 30, 2021, of Banco Santander's main subsidiaries:

Subsidiaries (R$ Millions)	Total Assets Stockholders' Equity	Net	Loan	Ownership/Interest
Income	Portfolio (1)	(%)
	Individual and Consolidated Financial Statements | June 30,	2021 | 5