Banco Santander Brasil S A : 1Q22 BRGAAP Financial Statements

Banco Santander (Brasil) S.A.

Parent Company and Individual and Consolidated Condensed Interim

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

March 31, 2022

Index

Performance Review ..................................................................................................................................................................................................... 3

Condensed Income Statement ............................................................................................................................................................................... 14

Condensed Statement of Changes in Shareholders' Equity - Bank ......................................................................................................... 16

Condensed Statement of Changes in Shareholders' Equity - Consolidated ........................................................................................ 17

Condensed Statement of Cash Flows .................................................................................................................................................................. 19

Condensed Value Added Statement .................................................................................................................................................................... 21

• 1. General Information ..................................................................................................................................................................................... 22

• 2. Presentation of Financial Statements ................................................................................................................................................... 22

• 3. Significant Accounting Policies ............................................................................................................................................................... 23

• 4. Cash and Cash Equivalents ....................................................................................................................................................................... 23

• 5. Interbank Investments ................................................................................................................................................................................ 24

• 6. Securities and Derivatives Financial Instruments ............................................................................................................................. 25

• 7. Interbank Accounts ...................................................................................................................................................................................... 41

• 8. Credit Portfolio and Allowance for Expected Losses Associated with Credit Risk .............................................................. 41

• 9. Other Financial Assets ................................................................................................................................................................................. 45

• 10. Tax Assets and Liabilities ........................................................................................................................................................................... 46

• 11. Other Assets .................................................................................................................................................................................................... 50

• 12. Information on Dependencies Abroad ................................................................................................................................................ 50

• 13. Investments in Affiliates and Subsidiaries Subsidiary .................................................................................................................... 51

• 14. Fixed Assets ..................................................................................................................................................................................................... 56

• 15. Intangibles ....................................................................................................................................................................................................... 57

• 16. Funding ............................................................................................................................................................................................................. 57

• 17. Other Financial Liabilities ........................................................................................................................................................................... 60

• 18. Other Payables - Other .............................................................................................................................................................................. 61

• 19. Provisions, Contingent Assets and Liabilities and Legal Obligations - Tax and Social Security .................................... 62

• 20. Stockholders' Equity .................................................................................................................................................................................... 66

• 21. Related Parties ............................................................................................................................................................................................... 69

• 22. Income from Services Rendered and Banking Fees ........................................................................................................................ 75

• 23. Personnel Expenses ...................................................................................................................................................................................... 76

• 24. Other Administrative Expenses ............................................................................................................................................................... 76

• 25. Other Operating Income ............................................................................................................................................................................ 76

• 26. Other Operating Expenses ........................................................................................................................................................................ 77

• 27. Non-Operating Income .............................................................................................................................................................................. 77

• 28. Employee Benefit Plans - Post-Employment Benefits .................................................................................................................... 78

• 29. Risk Management, Capital and Sensitivity Analysis ........................................................................................................................ 81

• 30. Other information ......................................................................................................................................................................................... 84

• 31. Subsequent Events ....................................................................................................................................................................................... 87

Composition of Management Bodies .................................................................................................................................................................. 88

Declaration of directors on the financial statements ..................................................................................................................................... 91

Directors' Statement on Independent Auditors ............................................................................................................................................... 93

Fiscal Council's Opinion ............................................................................................................................................................................................. 95

Performance Review

Dear Stockholders:

We present the Performance Commentary to the Condensed Individual and Consolidated Interim Financial Statements of Banco Santander (Brasil) S.A. (Banco Santander or Banco) for the period ended March 31, 2022, prepared in accordance with accounting practices adopted in Brazil, established by Corporation Law, together with the rules of the National Monetary Council (CMN), the Central Bank of Brazil (Bacen) and the model of the document provided for in the Accounting Plan of Institutions of the National Financial System (Cosif) and the Securities Commission (CVM), which do not conflict with the rules 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 period ended March 31, 2022 were simultaneously disclosed on the websitewww.santander.com.br/ri.

1. Macroeconomic Environment

At the end of the first quarter of 2022, Banco Santander observed that the median of the projections regarding the performance of the Brazilian economy indicated a growth of 0.5% in the Brazilian GDP in 2022, compared to the expansion of 4.6% in the previous year. The projection for 2022 is higher than that observed at the end of the fourth quarter of 2021 and, in the Bank's assessment, was influenced by the publication that the effective result observed last year was higher than the market consensus - the median of the estimates indicated annual expansion 4.5% for 2021, while the observed figure was up 4.6%. However, the economic activity data released was in line with Santander's estimate for GDP growth in the previous quarter, and reinforced the Bank's expectation that the Brazilian economy will grow by 0.7% in 2022.

In the first quarter, the Bank witnessed the interannual variation of the IPCA reach 10.54%, a level above the target set for 2022 (3.50%) and higher than the interannual value of 7.5% projected by Santander for the year 2022. The Bank understands that this inflationary environment and its balance of risks were the reasons for the Central Bank of Brazil to raise the basic interest rate to 6.25% p.a. to 9.25% p.a. in the fourth quarter of 2021 and extended the upward cycle into the first quarter of 2022, when the Selic rate reached 11.75% p.a. at the March Copom meeting. Santander believes that this approach to the Selic rate increases the chance that inflation will converge to the targets established within the time horizon relevant to monetary policy. In this sense, the Bank projects that the Selic rate will reach 13.25% p.a. at the end of 2022 and may decline to 10.00% p.a. at the end of 2023.

Regarding the behavior of the exchange rate, Banco Santander saw the exchange rate of the Brazilian currency against the US dollar close the fourth quarter of 2021 at R$5.58/US$. That is, above the rate of R$5.44/US$ seen at the end of the previous quarter. This trajectory of devaluation of the real was reversed in the first quarter, with the exchange rate ending March at R$4.77/US$, and is in line with Santander's forecast that it will end 2022 at R$5.40/US$.

The aforementioned performances took place in the midst of an international environment that the Bank considered less favorable than in previous periods, with the following themes as highlights: 1) beginning of the cycle of high interest rates by the US central bank and; 2) conflict between Russia and Ukraine, which had an upward impact on commodity prices and reinforced already existing global inflationary pressures. In the domestic environment, Santander understands that the main themes were the following: 1) continuation of inflationary pressures, conditioning the current economic context and; 2) attempts by the federal government to change fuel taxation and alleviate such pressures.

2. Performance

2.1) Corporate Income

Consolidated Income Statements (R$ Millions)	1Q22	1Q21
Financial Income	(5,695.1)	37,756.9
Financial Expenses	15,319.2	(29,816.7)
Gross Profit From Financial Operations (a)	9,624.1	7,940.2
Other Operating (Expenses) Income (b)	(3,998.2)	(4,035.6)
Operating Income	5,625.9	3,904.6
Non-Operating Income	371.5	29.2
Income Before Taxes on Income and Profit Sharing	5,997.4	3,933.8
Income Tax and Social Contribution (a)	(1,539.4)	(620.4)
Profit Sharing	(475.6)	(471.9)
Non-Controlling Interest	(36.5)	(25.3)
Consolidated Net Income	3,945.9	2,816.2

annual changes%	quarter changes %
(115.1) 151.4 (21.2) (0.9) 44.1 1,172.3 52.5 148.1 0.8 44.3 40.1	29,303.2 (19,749.6) 9,553.6 (4,111.8) 5,441.8 (42.3) 5,399.5 (951.2) (618.0) (33.9) 3,796.4	(119.4) (177.6) 0.7 (2.8) 3.4 (978.3) 11.1 61.8 (23.0) 7.7 3.9

OPERATING RESULT BEFORE ADJUSTED TAXATION (R$ Million)	1Q22	1Q21	annual variation%	4Q21	quarterly variation%
Result before Taxation on Profit and Participation	5,997.5 3,933.8 - 2,049.5 5,997.5 5,983.3	52.5	5,399.5 782.2 6,181.7	11.1
Foreign Exchange Hedge	(100.0)	(100.0)
Operating Income Before Adjusted Taxation	0.2	(3.0)
NCOME TAX	1Q22	1Q21	annual variation%	2Q21	quarterly
(R$ Million)	variation%
ncome tax and social contribution	(1,539.4) (620.4) - (2,049.5) (1,539.4) (2,669.9)	148.1	(951.2) (782.2) (1,733.4)	61.8
Foreign Exchange Hedge	(100.0)	(100.0)
Adjusted Income Tax and Social Contribution	(42.3)	(11.2)

The return for the year based on the accounting result on average equity reached 19.9%, an increase of 5.0% compared to the same period in 2021.

a) Foreign Exchange Hedge of Grand Cayman and Luxembourg Branches

Banco Santander operates branches in the Cayman Islands and Luxembourg, which are mainly used 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 finance. abroad and working capital. To cover the exposure to exchange variations, the Bank uses external funding and derivative instruments. In accordance with Brazilian tax rules, as of January 2021, 50% of 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 the taxable income and in the calculation basis of the Contribution Social Security on Net Income (CSLL) of the investing legal entity domiciled in the country, while gains or losses from obligations and derivative instruments used as hedging 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 (PIS/COFINS) and income taxes (IR/CSLL) accounts, as shown below:

Foreign Exchange Hedge of the Grand Cayman and Luxembourg Branches

1Q22

1Q21

annual changes%

2T21

quarterly changes %

(R$ Million)

Exchange Variation - Profit From Financial Operations

Derivative Financial Instruments - Profit From Financial Operations Income Tax and Social Contribution

(6,178.1) 6,480.0

PIS/Cofins - Tax Expenses

- (301.9)

5,015.1 (7,409.4) 2,049.5 344.5

(223.2) 1,426.0 (533.2)

(187.5) (2,315.8) (379.8)

(100.0) (187.6)

782.2 (100.0)

107.7 (380.3)

2.2) Assets and Liabilities

Consolidated Balance Sheets (R$ Millions)

Mar/22

Dec/21

annual changes %

Current Assets Long-Term Assets

539,055.1 509,576.8

420,916.0 453,799.1

5.8(7.2)

Total Assets

959,971.1 963,376.0

(0.4)

Current and Long-Term Liabilities Deferred Income Non-Controlling Interest Stockholders' Equity

879,450.4 882,996.9

0.0 1,334.2

382.31,257.2

(0.4)(100.0)

6.1

79,186.5 78,739.6

0.6

Total Liabilities and Stockholders' Equity

959,971.1 963,376.0

(0.4)

2.3) Stockholders' Equity

As of March 31, 2022, Banco Santander's consolidated shareholders' equity increased by 0.7% compared to December 31, 2021.

The variation in Shareholders' Equity between March 31, 2022 and December 31, 2021 was mainly due to the net income for the period in the amount of R$3,946 million, the negative equity valuation adjustment (securities and derivative financial instruments ) in the amount of R$475 million.

For additional information, see note 20.

2.4) Basel Index

Bacen determines that financial institutions maintain a Reference Equity (PR), Tier I Equity and Core 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, market and operational risk.

As established in CMN Resolution No. 4,958/2021, the PR requirement is 11.00%, including 8.00% of Minimum Reference Equity, plus 2.00% of Additional for Capital Conservation and 1.00% of Additional systemic. Tier I PR is 9.00% and Minimum Principal Capital is 7.50%.

As of April 2022, the PR requirement will reach 11.50%, considering 8.00% of Minimum Reference Equity plus 2.50% of Capital Conservation Additional and 1.00% of Systemic Additional, with requirement Tier I PR and Minimum Principal Capital of 9.50% and 8.00%, respectively.

Continuing with the adoption of the rules established by CMN Resolution No. 4,955/2021, the calculation of capital ratios is calculated on a consolidated basis based on information from the Prudential Conglomerate, whose definition is established by CMN Resolution No. 4,950/2021, as shown in follow:

Basel Index%	Mar/22	Dec/21
Basel I Ratio	12.75	12.81
Basel Principal Capital	11.74	11.64
Basel Regulatory Capital	14.71	14.91
2.5) Main Subsidiaries

The table below shows the balances of total assets, shareholders' equity, net income and loan operations portfolio for the period ended March 31, 2022, of Banco Santander's main subsidiaries:

Stockholders'Subsidiaries (R$ Millions)

Total Assets

EquityNet IncomeLoan Portfolio

Ownership/Interest

(%)

Aymoré Crédito, Financiamento e Investimento S.A. Santander Leasing S.A. Arrendamento Mercantil

58,381.2

2,305.2

14,653.4

11,045.9

81.3 118.9

53,756.5 100%

2,481.3 100%

Santander Corretora de Seguros, Investimento e Serviços S.A. Atual Serviços de Recuperação de Créditos e Meios Digitais S.A. Santander Corretora de Câmbio e Valores Mobiliários S.A.

11,421.6

4,623.9

265.8 - 100%

3,068.3

2,690.4

66.2 - 100%

1,520.7

807.0

37.6 - 100%

The balances presented above are in accordance with the accounting practices adopted in Brazil, established by the Brazilian Corporation Law, together with the rules of the CMN, the Bacen and the document model provided for in the Accounting Plan of the Institutions of Cosif, of the CVM, in what do not conflict with the rules issued by Bacen, without eliminating operations with affiliates.

3. Corporate Restructuring

During the period ended March 31, 2022 and the year ended December 31, 2021, several corporate movements were implemented with the aim of reorganizing the operations and activities of the entities in accordance with Banco Santander's business plan.

For additional information, see the explanatory note to the financial statements No. 13.