6-K/A 1 EDGAR_4T21_BRGAAP_INGLES.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

For the month of December, 2021

Commission File Number: 001-34476

BANCO SANTANDER (BRASIL) S.A.

(Exact name of registrant as specified in its charter)

Avenida Presidente Juscelino Kubitschek, 2041 and 2235
Bloco A – Vila Olimpia
São Paulo, SP 04543-011
Federative Republic of Brazil

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F ___X___ Form 40-F _______

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes _______ No ___X____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes _______ No ___X____

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes _______ No ___X____

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

Index

Performance Review.. 2

Balance Sheet 18

Statement of Income. 20

Statement of Comprehensive Income. 21

Statement of Changes in Stockholders' Equity – Bank. 22

Statement of Changes in Stockholders' Equity – Consolidated. 25

Statement of Cash Flows. 28

Statement of Value Added. 29

Explanatory Notes to the Financial Statements:

1. General Information. 30

2. Presentation of Financial Statements. 30

3. Significant Accounting Policies. 31

4. Cash and Cash Equivalents. 39

5. Interbank Investments. 39

6. Securities and Derivatives Financial Instruments. 41

7. Interbank Accounts. 55

8. Credit Portfolio and Allowance for Expected Losses Associated with Credit Risk. 55

9. Foreign Exchange Portfolio. 59

10. Other Financial Assets. 59

11. Tax Assets and Liabilities. 61

12. Other Assets. 67

13. Dependences Information and Foreign Subsidiary. 67

14. Investments in Affiliates and Subsidiaries Subsidiary. 68

15. Fixed Assets. 71

16. Intangibles. 71

17. Funding. 72

18. Other Financial Liabilities. 75

19. Other Payables – Other 76

20. Provisions, Contingent Assets and Liabilities and Legal Obligations - Tax and Social Security. 77

21. Stockholders’ Equity. 82

22. Related Parties. 84

23. Income from Services Rendered and Banking Fees. 92

24. Personnel Expenses. 92

25. Other Administrative Expenses. 92

26. Other Operating Income. 92

27. Other Operating Expenses. 92

28. Non-Operating Income. 93

29. Employee Benefit Plans. 93

30. Risk Management, Capital and Sensitivity Analysis. 99

31. Corporate Restructuring. 102

32. Other information. 105

33. Subsequent Events. 108

Composition of Management Bodies as of December 31, 2021. 109

Declaration of directors on the Financial Statements. 112

Directors' Statement on Independent Auditors’ Report 113

Audit Comittee Report 114

Fiscal Council’s Opinion. 116

# Performance Review

Dear Stockholders:

We present the Performance Commentary to the Individual and Consolidated Financial Statements of Banco Santander (Brasil) S.A. (Banco Santander or Banco) for the period ended December 31, 2021, 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 Consolidated Financial Statements prepared based on the international accounting standards issued by the International Accounting Standards Board (IASB) for the period ended December 31, 2021, will be disclosed in the legal deadline, on the website www.santander.com.br/ri.

1. Macroeconomic Environment

At the end of the fourth quarter of 2021, Banco Santander observed that the median of the projections regarding the performance of the Brazilian economy indicated a growth of 4.7% in the Brazilian GDP in 2021 compared to the contraction of 4.06% in the previous year. The projection for 2021 is lower than that observed at the end of the third quarter and, in the Bank's assessment, was influenced by the recent publication that the effective result observed in that period was below the market consensus - the median of the estimates indicated a seasonally adjusted quarterly expansion of 0.34% for the third quarter of 2021, while the observed number was a contraction of 0.1% in the same terms. 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 4.7% in 2021.

In the third quarter, the Bank witnessed the interannual variation of the IPCA reach 10.06%, a level above the target set for 2021 (3.75%) and higher than the interannual value of 9.6% projected by Santander for the year 2021. 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 of 5.25% p.a. to 6.25% p.a. in the third quarter and extended the upward cycle into the fourth quarter, when the Selic rate reached 9.25% p.a. at the December 2021 Copom meeting. Santander believes that this approach to the Selic rate increases the chance that inflation will converge to the targets established within the relevant time horizon for monetary policy. In this sense, the Bank projects that the Selic rate will reach 12.25% p.a. at the end of 2022 and may decline to 9.00% 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 third quarter of 2021 at R$5.44/US$. That is, above the rate of R$5.00/US$ seen at the end of the previous quarter. This trajectory of devaluation of the real continued in the fourth quarter, with the exchange rate ending 2021 at R$5.58/US$, and is in line with Santander's forecast that it will end 2022 at R$5.70/US$.

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 reduction of monetary stimuli by the North American central bank; 2) increase in coronavirus cases due to the new omicron variant (especially in Europe), which could imply the return of stricter mobility restrictions. In the domestic environment, Santander understands that the main themes were the following: 1) approval of the PEC of Precatórios, which will change the tax structure and; 2) continuity of inflationary pressures, conditioning the current economic context.

2. Performance

2.1) Corporate Income

Consolidated Income Statements (R$ Millions) | 12M21 | 12M20 |  | annual changes % |  | 4Q21 |  | 3Q21 |  | quarter changes % |
Financial Income | 99,112.2 | 108,988.3 |  | (9.1) |  | 29,303.2 |  | 39,555.9 |  | (25.9) |
Financial Expenses | (59,797.4) | (87,751.0) |  | (31.9) |  | (19,749.6) |  | (31,149.0) |  | (36.6) |
Gross Profit from Financial Operations (a) | 39,314.9 | 21,237.3 |  | 85.1 |  | 9,553.6 |  | 8,406.9 |  | 13.6 |
Other Operating (Expenses) Income (b) | (15,652.3) | (12,555.1) |  | 24.7 |  | (4,111.8) |  | (4,012.4) |  | 2.5 |
Operating Income | 23,662,6 | 8,682.3 |  | 172.5 |  | 5,441.8 |  | 4,394.5 |  | 23.8 |
Non-Operating Income | 9.0 | 239.0 |  | (96.2) |  | (42.3) |  | 23.2 |  | (282.3) |
Income Before Taxes on Income and Profit Sharing | 23,671.6 | 8,921.2 |  | 165.3 |  | 5,399.5 |  | 4,417.7 |  | 22.2 |
Income Tax and Social Contribution (a) | (6,503.2) | 6,539.5 |  | (199.4) |  | (951.2) |  | 374.9 |  | (353.7) |
Profit Sharing | (2,059.7) | (1,857.9) |  | 10.9 |  | (618.0) |  | (501.2) |  | 23.3 |
Non-Controlling Interest | (120.9) | (133.4) |  | (9.3) |  | (33.9) |  | (19.1) |  | 77.5 |
Consolidated Net Income | 14,987.7 | 13,469.4 |  | 11.3 |  | 3,796.4 |  | 4,272.2 |  | (11.1) |

OPERATING RESULT BEFORE ADJUSTED TAXATION | 12M21 | 12M20 | annual changes % | 4Q21 | 3Q21 | quarterly changes %
(R$ Million)
Result before Taxation on Profit and Participation | 23,671.6 | 8,921.2 | 165.3 | 5,399.6 | 4,417.7 | 22.2
Foreign Exchange Hedge | 2,236.9 | 13,271.2 | (83.1) | 782.2 | 2,247.1 | (65.2)
Operating Income Before Adjusted Taxation | 25,908.5 | 22,192.4 | 16.7 | 6,181.8 | 6,664.8 | (7.2)
INCOME TAX | 12M21 | 12M20 | annual changes % | 4Q21 | 3Q21 | quarterly changes %
(R$ Million)
Income tax and social contribution | (6,503.2) | 6,539.5 | (199.4) | (951.2) | 374.9 | (353.7)
Foreign Exchange Hedge | (2,236.9) | (13,271.2) | (83.1) | (782.2) | (2,247.1) | (65.2)
Adjusted Income Tax and Social Contribution | (8,740.1) | (6,731.7) | 29.8 | (1,733.4) | (1,872.2) | (7.4)

Banco Santander has shown a consistent evolution in profitability. This performance is supported by the growth of the customer base, reaching a historic record in the number of acquisitions, and mainly by the greater connection of these customers with the bank and by the increase in transactions.

The gross financial margin reached R$55,617 million in 2021, showing an increase of 8.8% in twelve months. The good performance is due to the customer margin, which grew 9.8% in the year, mainly influenced by higher volumes.

Income from banking services and fees totaled R$18,879 million in 2021, up 13.9% in the year and 3.1% in the quarter, both variations were mainly supported by the growth in revenues from cards, insurance and administration of funds, consortia and goods, in contrast to the drop in revenue from current account services, totaled R$3,812 million in the year, a decrease of -3.9% compared to last year and of -6.3% in the quarter, in reason, mainly due to the growth of transactionality via PIX.

General expenses reached R$21,212 million in 2021, up 3.9% in the year, significantly below the 10.06% inflation for the period, and the growth in total revenues (+10.1% in the year). In 2021, Banco Santander reached an efficiency ratio of 35.3%, an improvement of 9p.p. in 12 twelve months. This performance demonstrates our commitment to productivity, as a result of the strategy of constantly capturing opportunities, through the integration of our platform and the industrialization of our processes.

The annualized return for the period, based on the accounting result on average equity, reached 18.72%, an increase of 1.1 p.p. compared to the same period in 2020.

a) Foreign Exchange Hedge of 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 the 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 (R$ Million) | 12M21 | 12M20 |  | annual changes % |  | 4Q21 |  | 3Q21 |  | quarterly changes %
Exchange Variation - Profit from Financial Operations | 3,862.1 | 16,791.9 |  | (77.0) |  | 1,426.0 |  | 4,380.5 |  | (67.4)
Derivative Financial Instruments - Profit from Financial Operations | (6,374.1) | (30,374.9) |  | (79.0) |  | (2,315.8) |  | (6,927.6) |  | (66.6)
Income Tax and Social Contribution | 2,236.9 | 13,271.2 |  | (83.1) |  | 782.2 |  | 2,247.1 |  | (65.2)
PIS/Cofins - Tax Expenses | 275.1 | 311.8 |  | (11.8) |  | 107.7 |  | 300.8 |  | (64.2)

2.2) Assets and Liabilities

Consolidated Balance Sheets (R$ Millions) | Dec/21 | Dec/20 |  | annual changes % |
Current Assets | 509,576.8 | 601,809.9 |  | (15.3) |
Long-Term Assets | 453,799.1 | 397,955.9 |  | 14.0 |
Total Assets | 963,376.0 | 999,765.9 |  | (3.6) |
Current and Long-Term Liabilities | 882,996.9 | 919,291.5 |  | (3.9) |
Deferred Income | 382.3 | 355.5 |  | 7.5 |
Non-Controlling Interest | 1,257.2 | 1,150.7 |  | 9.3 |
Stockholders' Equity | 78,739.6 | 78,968.2 |  | (0.3) |
Total Liabilities and Stockholders' Equity | 963,376.0 | 999,765.9 |  | (3.6) |

Total assets are mainly represented by:

(R$ Millions) | Dec/21 | Dec/20 |  | annual changes %
Loan Portfolio | 462,749.3 | 411,654.8 |  | 12.4
Securities and Derivative Financial Instruments (1) | 248,795.7 | 266,088.4 |  | (6.5)
Interbank Investments | 33,629.3 | 69,698.3 |  | (51.8)
Interbank Accounts | 88,376.6 | 91,011.3 |  | (2.9)

2.3) Loan Portfolio

Management Disclosure of Loan Portifolio by Segment (R$ Million) |  |  | Dec/21 | Dec/20 | annual changes %
Individuals (1) |  |  | 208,751.8 | 173,627.0 | 20.3
Consumer Finance |  |  | 65,312.7 | 60,256.3 | 8.4
Individuals (1) |  |  | 56,587.4 | 53,974.2 | 4.8
Corporate |  |  | 8,725.3 | 6,282.1 | 38.9
Small and Medium-sized Entities |  |  | 61,611.5 | 55,914.9 | 10.2
Large-sized Entity |  |  | 125,614.6 | 121,183.5 | 3.7
Sim |  |  | 1,458.7 | 673.1 | 116.7
Total Loan portfolio (gross) |  |  | 462,749.3 | 411,654.8 | 12.4
Other Operations with Credit Risk |  |  | 118,136.5 | 99,311.8 | 19.0
Total Extended Portfolio (gross) |  |  | 580,885.8 | 510,966.6 | 13.7
Allowance for Loan Losses (2) |  |  | (29,334.6) | (25,067.0) | (14.6)
Total Loan portfolio (net) |  |  | 551,551.2 | 485,899.6 | 15.1

(1) Including the loans to individual in the consumer finance segment, the individual portfolio reached R$266,833 on December 31, 2021 (12/31/2020 – R$227,601).

(2) In addition to the provision for loans, also includes debentures, FIDC, CRI, promissory notes, promissory notes for placement abroad, assets related to acquiring activities and sureties and sureties.

Delinquency

The delinquency rate over 90 days increased by 0.12 p.p. in the year and reached 2.7% in December 2021, the lowest level ever recorded. This movement was a result of the improvement in the index of the Individuals and Individuals segments, which are still partly influenced by the effect of the payment extensions offered to our customers. In addition, the product mix, with a lower share of the rotating ones, also contributes positively to the good performance of the default rate. In three months, the indicator was stable.

The delinquency from 15 to 90 day rate reached 3.5% in December 2021, a reduction of -0.2 p.p. in the year in both segments. In the quarter, the index decreased by 0.3 pp, also benefiting from the increase in the loan portfolio in the period.

The balance of provisions for expected losses associated with credit risk represents 5.9% of the credit portfolio on December 31, 2021, 6.1% on December 31, 2020.

The expense for allowance for loan losses, net of revenue from recovery of credits written off for losses in 2021 and 2020, was R$11,934 million and R$13,689 million, respectively, showing an increase of -12.8%.

2.4) Funding by Costumers

Funding by Customers (R$ Millions) | Dec/21 | Dec/20 |  | annual changes %
Demand Deposits | 40,454.3 | 41,821.3 |  | (3.3)
Saving Deposits | 65,220.1 | 63,306.5 |  | 3.0
Time Deposits | 293,242.3 | 279,778.6 |  | 4.8
Debentures/LCI/LCA/LIG (1) | 61,921.8 | 52,382.8 |  | 18.2
Treasury Bills/Structured Operations Certificates | 32,623.7 | 18,462.0 |  | 76.7
Total Funding | 493,462.1 | 455,751.2 |  | 8.3

(1) Debentures repurchase agreement, Real Estate Credit Notes (LCI), Agribusiness Credit Notes (LCA) and Guaranteed Real State Credit Notes (LIG).

Customer borrowings totaled R$493,462 million on December 31, 2021, an increase of 8.3% in twelve months (or R$37,711 million), mainly influenced by the expressive 76.7% expansion in financial bills, and by the 18.2% growth in debentures and credit letters.

2.5) Issuance of Debt Instruments Eligible to Compose Capital

On November 5, 2018, the Board of Directors approved the redemption of Level I and Level II Notes issued on January 29, 2014, in the total amount of US$2.5 billion. The repurchase was approved by the Central Bank on December 18, 2018.

In conjunction with the approval of the redemption of the previous notes, the Board of Directors approved the issuance of the equity instruments, which was held on November 8, 2018. Such issuance took the form of notes issued abroad, in US dollars, in the amount of US$2.5 billion, for payment in Level I and Level II of Reference Equity. The offering of these Notes was made outside of Brazil and the United States of America, for non-US Persons, based on Regulation S under the Securities Act, and was fully paid in by Santander España, controlling shareholder of Banco Santander Brasil.

On December 18, 2018, the Bank issued an approval for the Notes to comprise Level I and Level II of Banco Santander's Reference Equity as of such date. This approval led to the reclassification of these instruments from the line of Eligible Debt Instruments to Capital for Subordinated Debts.

In November and December 2021, financial bills with a subordination clause were issued, the funds of which were used to compose Level II of the Reference Equity (PR), in the total amount of R$ 5.5 billion, in negotiations with private investors. The Letras Financeiras have a maturity term of 10 (ten) years with the option of redemption and repurchase in accordance with applicable regulations.

Details of the balance of Debt Instruments Eligible to Compose Capital referred to the issuance of equity instruments for the composition of Tier I and Tier II of Regulatory Capital due to the Capital Optimization Plan are as follows:

Debt Instruments Eligible to Compose Capital |  |  | Dec/21 |  |  |  |  | Dec/20
Specific features |  | Tier I (2) |  | Tier II (2) | Tier II |  | Tier II | Tier I (1) |  | Tier II (1)
Issuance |  | Nov-18 |  | Nov-18 | Nov-21 |  | Dec-21 | Nov-18 |  | Nov-18
Amount (Million) |  | $1,250 |  | $1,250 | $5,300 |  | $200 | $1.250 |  | $1.250
Interest Rate |  | 7.250% |  | 6.125% | CDI+2% |  | CDI+2% | 7.250% |  | 6.125%
Maturity |  | No Maturity (Perpetual) |  | Nov-28 | Nov-31 |  | Dec-31 | No Maturity (Perpetual) |  | nov-28
Value |  | $7,050 |  | $7,038 | $5,351 |  | $202 | $6,554 |  | $6,565
Periodicity of Payment |  | semiannualy, as of May 8, 2019 |  | semiannualy, as of May 8, 2019 | End of term with the Principal |  | End of term with the Principal | End of term with the Principal |  | semiannually, as of May 8, 2019

(1) Notes repurchased, as authorized by Bacen on December 18, 2018. As of the authorization date, they were excluded from Level I and Level II of PR.

(2) The issues were carried out through the Cayman Branch and there is no Income Tax at source, and interest is paid semiannually, as of May 8, 2019.

The Notes issued in 2018 have the following common characteristics:

(a) Unit value of at least US$150 thousand and in integral multiples of US$1 thousand in excess of such minimum value;

(b) The Notes may be repurchased or redeemed by Santander after the fifth anniversary as of the date of issue of the Notes, at the sole discretion of the Bank or as a result of changes in the tax legislation applicable to the Notes; or at any time, due to the occurrence of certain regulatory events.

2.6) Stockholders’ Equity

On December 31, 2021, Banco Santander's consolidated stockholders' equity decreased by 0.3% compared to December 31, 2020.

The changes in Stockholders' Equity between December 31, 2021, and December 31, 2020, was mainly due to the net income for the period in the amount of R$14,988 million, the negative adjustment to fair value (securities and derivative financial instruments) in the amount of R$3,597 million, the capital reduction in the amount of R$2,000 million due to the partial spin-off of Santander Brasil, which resulted in the segregation of the shares owned by it issued by Getnet Adquirência e Serviços para Meios de Pagamentos S.A. (“Getnet”), see note 21.a and the payment of dividends in the amount of R$6,000 million and Interest on Equity in the amount of R$3,649 million.

Treasury Shares
Below, the movement of Treasury Shares:

|  |  |  | Dec/21 | Dec/20
|  |  |  | Quantity | Quantity
|  |  |  | Units | Units
Treasury shares at beginning of the period |  |  |  | 18,829 | 16,702
Shares Acquisitions |  |  |  | 91 | 5,052
Payment - Share-based compensation |  |  |  | (3,165) | (2,925)
Treasury shares at end of the period |  |  |  | 15,755 | 18,829
Subtotal - Treasury Shares in thousands of reais |  |  |  | $711,268 | $789,587
Emission Costs in thousands of Reais |  |  |  | $1,771 | $1,771
Balance of Treasury Shares in thousands of reais |  |  |  | $713,039 | $791,358
Cost/Share price |  |  |  | Units | Units
Minimum cost |  |  |  | $7.55 | $7.55
Weighted average cost |  |  |  | $33.86 | $33.24
Maximum cost |  |  |  | $49.55 | $49.55
Share price |  |  |  | $29.98 | $44.83

In the fiscal year ended on December 31, 2021, and December 31, 2020, there were highlights of Dividends and Interest on Capital, as below:

DIVIDENDS AND INTEREST ON CAPITAL (R$ Millions) |  |  |  | Dec/21 | Dec/20
Interest on capital |  |  |  | 3,649.0 | 3,325.0
Dividends |  |  |  | 6,000.0 | 0.0
Total |  |  |  | 9,649.0 | 3,325.0

2.7) 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 Resolutions No. 4,193/2013 and No. 4,783/2020, until September 2021 the PR requirement was 10.625%, including 8.00% of Minimum Reference Equity plus 1.625% of Additional for Capital Conservation and 1 .00% Systemic Additional. Tier I PR was 8.625% and Minimum Principal Capital was 7.125%.

In October 2021, the Additional for Capital Conservation increased to 2.00%. Thus, in December the PR requirement is 11.00%. It is considered 8.00% of Minimum Reference Equity plus 2.00% of Additional for Capital Conservation and 1.00% of Additional Systemic, with the requirement of Tier I PR of 9.00% and of Core Capital Minimum of 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 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 force.

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

Basel Index% | Dec/21 | Dec/20
Tier I Regulatory Capital | 76,969.9 | 77,571.5
Principal Capital | 69,919.9 | 71,006.3
Supplementary Capital | 7,050.1 | 6,565.2
Tier II Regulatory Capital | 12,591.3 | 6,554.5
Regulatory Capital (Tier I and II) | 89,561.3 | 84,126.0
Credit Risk | 527,119.3 | 478,303.5
Market Risk | 15,122.2 | 15,846.3
Operational Risk | 58,499.8 | 57,419.4
Total RWA | 600,741.3 | 551,569.2
Basel I Ratio | 12.81 | 14.06
Basel Principal Capital | 11.64 | 12.87
Basel Regulatory Capital | 14.91 | 15.25

2.8) Main Subsidiaries

The table below shows the balances of total assets, shareholders' equity, net income and loan operations portfolio for the period ended December 31, 2021, of Banco Santander's main subsidiaries:

Subsidiaries (R$ Millions) | Total Assets |  | Stockholders' Equity | Net Income |  | Loan Portfolio |  | Ownership/Interest (%)
Aymoré Crédito, Financiamento e Investimento S.A. | 59,429.2 |  | 2,023.0 |  | 1,012.3 |  | 54,130.5 |  | 100.0%
Santander Leasing S.A. Arrendamento Mercantil | 14,724.7 |  | 10,944.6 |  | 372.6 |  | 2,533.0 |  | 100.0%
Santander Corretora de Seguros, Investimento e Serviços S.A. | 10,805.7 |  | 3,581.0 |  | 1,048.9 |  | - |  | 100.0%
Banco RCI Brasil S.A. | 11,147.5 |  | 1,457.3 |  | 157.5 |  | 9,123.6 |  | 39.9%
Atual Serviços de Recuperação de Créditos e Meios Digitais S.A. | 2,745.0 |  | 2,592.7 |  | 97.7 |  | - |  | 100.0%
Santander Corretora de Câmbio e Valores Mobiliários S.A. | 1,600.6 |  | 771.2 |  | 85.0 |  | - |  | 100.0%

The financial statements of the above Subsidiaries were prepared in accordance with the accounting practices adopted in Brazil, established by the Corporation Law, together with the rules of the CMN, Bacen and the document model provided for in the Accounting Plan of Cosif Institutions, of CVM, which do not conflict with the rules issued by Bacen, without the elimination of operations with affiliates.

3. Corporate Restructuring

During the year ended December 31, 2021, and the year ended December 31, 2020, 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. 31.

4. Strategy and Rating Agencies

For information regarding the Bank's strategy and rating at rating agencies, see the Results Report available at www.santander.com.br/ri.

5. Corporate Governance

The Board of Directors of Banco Santander met and resolved:

On December 28, 2021, it approved the proposal for the declaration and payment of interest on equity, in the amount of R$249 million, which will be paid as of February 3, 2022, without any monetary restatement.

On December 17, 2021, it approved the dismissal of Mr. Sérgio Agapito Lires Rial from the position of Chief Executive Officer of the Company; the management of Mr. Mario Roberto Opice Leão, current Executive Vice-President, to the position of Chief Executive Officer of the Company; the dismissal of Mr. Juan Sebastián Moreno Blanco from the position of Executive Vice-President of the Company and the management of the current Directors without Specific Designation, Ms. Andrea Marques de Almeida, Ms. Elita Vechin Pastorelo Ariaz, and Mr. João Marcos Pequeno De Biase, to the position of Executive Vice Presidents of the Company.

On December 17, 2021, it approved the appointment of Mr. Sérgio Agapito Lires Rial, to the positions of Coordinator of the Nomination and Governance Committee and member of the Company's Remuneration and Risks and Compliance Committees; the dismissal of Mr. Mario Roberto Opice Leão and Mr. Carlos Rey de Vicente from the positions of members of the Company's Sustainability Committee and the appointment of Ms. Andrea Marques de Almeida and Mr. Álvaro Antônio Cardoso de Souza and Mr. Luiz Masagão Ribeiro Filho as members of the Company's Sustainability Committee.

On December 1, 2021, it approved the election of Mr. Gustavo de Souza Fosse as Officer without specific designation by the Company.

On November 16, 2021, it became aware of the resignation request presented by Mr. Álvara Antônio Cardoso de Souza as Chairman of the Board of Directors, Coordinator of the Nomination and Governance Committee and member of the Compensation and Risks and Compliance Committees of the Company, all with effect from January 1, 2022 and approved the Management Proposal to call the Extraordinary General Meeting of the Company to be held on December 17, 2021.

On November 1, 2021, it approved the election of Ms. Maria Teresa Mauricio da Rocha Pereira Leite, Ms. Andrea Marques de Almeida and Mr. Gilberto Duarte de Abreu as Officers without specific designation of the Company.

On October 26, 2021, it approved the proposal for declaration and payment of dividends on equity, in the amount of R$ 3.0 billion, paid on December 3, 2021, without any remuneration as monetary restatement.

On October 26, 2021, it approved the Consolidated Financial Statements of Banco Santander, prepared in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by Bacen and the Interim Consolidated Financial Statements of Banco Santander prepared in accordance with the Standards Financial Reporting Internationals (IFRS), both for the period ended September 30, 2021.

On September 16, 2021, it approved the re-election of Ms. Monique Silvano Arantes Bernardes as Ombudsman of the Company for a new term of 1 (one) year.

On July 27, 2021, it approved the Consolidated Financial Statements of Banco Santander, prepared in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by Bacen and the Interim Consolidated Financial Statements of Banco Santander prepared in accordance with the Standards Financial Reporting Internationals (IFRS), both for the semester ended June 30, 2021.

On July 27, 2021, it approved the proposal for declaration and payment of interest on equity, in the amount of R$ 3.4 billion, paid on September 3, 2021, without any remuneration by way of monetary restatement.

On July 1, 2021, it approved the election of Mr. Rogério Magno Panca and Sandro Mazerino Sobral as Officers without a Specific Designation of the Company.

On June 1, 2021, it approved the election of Ms. Vania Maria da Costa Borgerth as a member of the Company's Audit Committee.

On May 3, 2021, it approved the election of the members of the Company's Executive Board for a new term.

On May 3, 2021, it approved the election of the members of the Advisory Committees to the Company's Board of Directors for a new term.

On April 27, 2021, it approved the proposal for the declaration and payment of interim and interim dividends totaling R$ 3 billion, paid on June 2, 2021 without any remuneration as monetary restatement.

On April 27, 2021, it approved the Management Report and the Company's Financial Statements in BRGAAP and IFRS for the first quarter of 2021.

On March 31, 2021, it approved the partial spin-off of the Company, which will result in the segregation of its shares issued by Getnet, with version 2 of the split portion to Getnet, pursuant to the Protocol and Justification of the Partial Spin-off of Santander (" Partial Spin-off”).

On March 1, 2021, it became aware of the resignation request presented by Tarcila Reis Corrêa Ursini as a member of the Company's Sustainability Committee.

On February 25, 2021, it approved the proposed spin-off of the payment methods operation, carried out by the subsidiary, Getnet Acquiring and Services for Means of Payment SA (“Getnet”), in order to concentrate the Group's technology and payments business Santander within PagoNxt, a new technology-focused global payments platform.

On February 2, 2021, it approved the Individual and Individual and Consolidated Condensed Interim Financial Statements of Banco Santander, prepared in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by Bacen for the year ended December 31, 2020.

On February 2, 2021, it approved, continuing the buyback program that expired on November 4, 2020, a new buyback program for Units and ADRs issued by Banco Santander, directly or through its Cayman branch, to be maintained in treasury or subsequent sale.

On February 2, 2021, it approved the proposal for declaration and payment of dividends, in the amount of R$ 512 million, paid on March 3, 2021, without any remuneration as monetary restatement.

The resolutions of the Board of Directors for the year 2020 are described in the Management Report of the Individual and Consolidated Financial Statements of December 31, 2020.

6. Risk Management

Bacen published on February 23, 2017, CMN Resolution No. 4,557, which provides for the risk and capital management structure (GIRC) which came into effect from the same year. The resolution highlights the need to implement an integrated risk and capital management structure, definition of an integrated stress test program and Risk Appetite Statement (RAS - Risk Appetite Statement), constitution of a Risk Committee, definition of a disclosure policy of published information, appointment of director for risk management, director of capital and director responsible for the information disclosure policy. Banco Santander develops the necessary actions on a continuous and progressive basis, aiming at adherence to the resolution. No relevant impacts arising from this standard were identified.

For more information, see note 30 to this publication.

Capital Management Structure

Banco Santander's capital management structure has robust governance, which supports the processes related to this issue and establishes the attributions of each of the teams involved. In addition, there is a clear definition of the guidelines that must be adopted for the effective management of capital. Further details can be found in the Risk and Capital Management Framework, available on the Investor Relations website.

Internal Audit

The Internal Audit reports directly to the Board of Directors, and the Audit Committee is responsible for its supervision.

The Internal Audit is a permanent function, independent from any other function or unit, whose mission is to provide the Board of Directors and senior management with independent assurance on the quality and effectiveness of internal control and risk management processes and systems (current or emerging) and government, thus contributing to the protection of the organization's value, solvency and reputation. Internal Audit has a quality certificate issued by the Institute of Internal Auditors (IIA).

In order to fulfill its functions and coverage risks inherent to Banco Santander's activity, the Internal Audit has a set of internally developed tools that are updated when necessary. Among them, the risk matrix stands out, used as a planning tool, prioritizing the risk level of the auditable universe considering, among others, its inherent risks, the last audit rating, the degree of compliance with the recommendations and its dimension. The work programs, which describe the audit tests to be performed, are periodically reviewed.

The Audit Committee and the Board of Directors favorably analyzed and approved the Internal Audit work plan for the year 2021.

7. People

With the public health crisis unleashed in early 2020, care has never been so much talked about. Take care of yourself and also the other. And at Banco Santander, we continue to take care of our people, an essential element in the Company. After all, they are the ones who think, design, develop, interact and build what Banco Santander wants to be. This is why the Bank invests in each of the 48,834 employees here in Brazil.

On the subject of Health, we designed our internal protocol to act in the containment of COVID-19, guided by Organs sanitary and health bodies. In addition to face-to-face assistance at clinics, hospitals and emergency rooms, employees and their dependents also have telemedicine services offered in their health care plans.

For the development of our people, the Corporate University – the Santander Academy, works for a strong, transversal culture, enabling everyone, online and in person, to improve what they already know and explore new possibilities. From mandatory certifications for certain functions to Digital Leadership courses, the most important thing is to get out of your comfort zone and invest in yourself by expanding your knowledge and repertoire.

Banco Santander supports leaders and managers so that they are close and available. This action is based on three pillars: Feedback, Open Chat and Personalized Recognition, ensuring alignment between everyone through recurring and frank conversations, career guidance and special moments to reward the growth of teams.

Banco Santander values ​​a diverse environment, where every skill and every difference is valued. An example is the Affinity Group, created to promote diversity and inclusion based on the 5 pillars: Female Leadership; Racial Equity; Disabled people; Diversity of Education, Experiences and Generations and the LGBT+ pillar. Another good example is the Talent Show. In it, Banco Santander opens space to learn about the most different performances and explore the universe of skills that exist at the Bank, allowing interaction and fraternization among colleagues.

In the Customer sphere, we remain focused on offering the best products and services, in a Simple, Personal and Fair manner. To this end, the process of updating our teams is essential and, therefore, we have the “Café com Rial” monthly. In a videoconference with the entire Bank, our CEO Sergio Rial talks about certain topics and answers questions from employees live. The last Café had a record participation of 44 thousand employees.

In August 2021, we also had the Blood Donation Campaign, where we had excellent adhesion, which could have saved more than 7,000 lives.

At the end of September 2021, we had Santander Week, which took place in all Santander units around the world. This year, our main focus was the “Joy of Serving” our customers, employees and society. During the week, in addition to the actions, we also had Amigo de Valor, which supports public policies aimed at guaranteeing the rights of children and adolescents and allows the allocation of part of the income tax due directly to the Children and Adolescents Direct Funds.

8. Sustainable Development

Banco Santander Brasil's Sustainability strategy is based on three pillars: (i) Strategic and efficient use of Environmental Resources, (ii) Development of Potentials and (iii) Resilient and Inclusive Economy. The Bank's vision, through these pillars, is to contribute to a better, more prosperous and fair society, maintaining excellence and responsibility in internal management, based on ethical values ​​and technology at the service of people and businesses.

We recognize our role as a financial institution in fostering sustainable business, helping society to prosper. We highlight some initiatives in 4Q21:

Environmental

· We made R$51.6 billion feasible in sustainable businesses. This value represents a growth of X% compared to the same period of the previous year.

· In CDC Solar, we financed a total of R$ 2.4 Bi between Santander Financiamentos and Rede Varejo operations.

· Launch of Portal Amazônia, which is a space to present the Bank's activities in the Amazon Region, with numbers on Infrastructure, Sanitation, Social Impact, Agribusiness, Climate Change, Amazon Plan, among others.

· Carbon Calculator: with the aim of encouraging Santander Brasil employees and affiliates to know their carbon footprint, the Bank created the individual carbon calculator. It's a quick questionnaire about people's daily lives to find out the amount of CO2 emitted monthly into the environment and see how to find a more neutral path to have less impact. https://santander.carboncalculator.greendomus.info/calculator

Social

Highlight for the greatest Friend of Valor in history. R$19.8 MM were raised in this edition. We will support the 100 selected projects with 100% of the requested resources.

Governance

Permanence in the ISE (the index groups the companies with the best performance in corporate sustainability), CDP and several awards, with emphasis on Fortune, with the case of renewable energies, as one of the companies that most change the world.

Awards in the period:

• Fortune - Change the World 2021 - Santander is the 4th. company in Fortune Magazine's Change the World 2021 ranking.

• Most Sustainable Company at Época Negócios 360° - In a special award for the 10th anniversary of the yearbook, Santander was elected the company of the decade in terms of Sustainability.

• GPTW - For the 6th consecutive year, Santander was elected one of the best companies to work for in Brazil by GPTW. This is the first time that we are in the top ten.

9. Effects of the Pandemic - COVID-19

The Bank monitors the effects of this pandemic that affect its operations and that may adversely affect its results. Since the beginning of the pandemic in Brazil, Committees have been set up to monitor the effects of the spread and its impacts, in addition to government actions to mitigate the effects of COVID-19.

The Bank maintains its operational activities, observing the protocols of the Ministry of Health and other Authorities. Among the actions taken, we highlight (a) the dismissal of employees from the risk group and intensification of home office work, (b) the definition of a monitoring protocol, with health professionals, for employees and family members who have the symptoms of COVID-19 and (c) increased communication about prevention measures and remote means of care.

Future impacts related to the pandemic, which have a certain degree of uncertainty as to their duration and severity and which, therefore, cannot be accurately measured at this time, will continue to be monitored by Management.

10. Independent Audit

Banco Santander's policy, including its subsidiaries, in contracting services unrelated to the audit of Financial Statements by its independent auditors is based on Brazilian and international auditing standards, which preserve the auditor's independence. This rationale provides for the following: (i) the auditor must not audit its own work, (ii) the auditor must not exercise managerial functions for its client, (iii) the auditor must not promote the interests of its client, and (iv) need for approval of any services by the Bank's Audit Committee.

Pursuant to CVM Instruction 381/2003, Banco Santander informs that in the period ended December 31, 2021, PricewaterhouseCoopers did not provide services unrelated to the independent audit of the Financial Statements of Banco Santander and its subsidiaries superior to 5% of total fees related to independent audit services.

Furthermore, the Bank confirms that PricewaterhouseCoopers has procedures, policies and controls in place to ensure its independence, which include an assessment of the work performed, including any service other than an independent audit of the Financial Statements of Banco Santander and its subsidiaries. This assessment is based on applicable regulations and accepted principles that preserve the auditor's independence. The acceptance and provision of professional services unrelated to the audit of the Financial Statements by its independent auditors during the period ended December 31, 2021, did not affect the independence and objectivity in conducting the external audit work carried out at Banco Santander and other entities of the Group, since the above principles have been observed.

The Board of Directors

The Executive Board

(Authorized at the Board of Directors' Meeting of 02/01/2022)

# Balance Sheet

|  |  | Bank |  | Consolidated
| Notes | 12/31/2021 | 12/31/2020 | 12/31/2021 | 12/31/2020
Current Assets |  | 522,451,023 | 586,324,279 | 509,576,839 | 601,809,939
Cash | 4 | 16,361,758 | 19,522,250 | 16,386,974 | 19,512,315
Financial Instruments |  | 443,560,677 | 511,695,788 | 425,610,218 | 521,618,612
Interbank Investments | 5 | 85,800,514 | 112,963,929 | 31,388,970 | 68,116,477
Securities and Derivative Financial Instruments | 6 | 78,980,822 | 96,534,510 | 93,620,934 | 107,235,066
Derivative Financial Instruments | 6 | 15,273,412 | 17,886,650 | 7,279,673 | 18,446,009
Lending Operations | 8 | 113,914,019 | 114,776,536 | 144,239,508 | 141,271,392
Others Assets Instruments | 10 | 149,591,910 | 169,534,163 | 149,081,133 | 186,549,668
Leasing Operations |  | - | - | 1,117,370 | 905,502
Provisions for Expected Losses Associated with Credit Risk | 8.e | (6,208,228) | (7,078,539) | (7,706,994) | (8,563,593)
Other Assets | 12 | 67,383,339 | 61,096,086 | 73,005,988 | 67,180,324
Current Tax Assets |  | 1,353,477 | 1,088,694 | 1,163,283 | 1,156,779
Long-Term Assets |  | 458,365,721 | 403,900,472 | 453,799,131 | 397,955,933
Financial Instruments |  | 387,956,693 | 331,190,945 | 400,059,113 | 339,374,177
Interbank Investments | 5 | 33,260,243 | 30,940,159 | 2,240,348 | 1,581,776
Securities and Derivative Financial Instruments | 6 | 129,206,353 | 119,283,560 | 134,085,048 | 126,013,272
Derivative Financial Instruments | 6 | 13,667,486 | 14,394,066 | 13,810,051 | 14,394,066
Lending Operations | 8 | 203,445,400 | 164,803,732 | 239,240,166 | 196,839,325
Others Assets Instruments | 10 | 8,377,211 | 1,769,428 | 10,683,500 | 545,738
Leasing Operations |  | - | - | 1,578,582 | 1,565,882
Provisions for Expected Losses Associated with Credit Risk | 8.e | (17,165,339) | (14,756,906) | (19,424,300) | (16,503,895)
Other Assets | 12 | 14,489,073 | 15,179,345 | 17,360,213 | 17,774,260
Current and Deferred Tax Assets |  | 35,767,085 | 36,879,209 | 41,289,987 | 41,894,356
Current |  | 2,593,535 | 1,130,228 | 3,331,917 | 1,973,522
Deferred | 11 | 33,173,550 | 35,748,981 | 37,958,070 | 39,920,834
Investments |  | 25,980,085 | 23,208,562 | 428,488 | 332,851
Investments in Associates and Subsidiaries | 14 | 25,958,916 | 23,187,617 | 408,693 | 311,852
Other Investments |  | 21,169 | 20,945 | 19,795 | 20,999
Fixed Assets | 15 | 6,066,686 | 6,102,538 | 6,384,348 | 7,046,685
Real Estate for Use |  | 2,463,155 | 2,443,916 | 2,752,082 | 2,744,391
Other Fixed Assets in Use |  | 13,292,159 | 12,405,737 | 13,528,400 | 14,220,916
(Accumulated Depreciation) |  | (9,688,628) | (8,747,115) | (9,896,134) | (9,918,622)
Intangible | 16 | 5,271,438 | 6,096,779 | 6,122,700 | 6,471,617
Goodwill on Acquisition of Subsidiaries | 27.220.515 | 28,523,504 | 28,155,084 | 29,680,240
Other Intangible Assets |  | 10,793,517 | 9,510,686 | 11,145,052 | 10,208,203
(Accumulated Amortizations) |  | (32,742,594) | (31,937,411) | (33,177,436) | (33,416,826)
Total Assets |  | 980,816,744 | 990,224,751 | 963,375,970 | 999,765,872

The accompanying notes from Management are an integral part of these financial statements.

|  |  | Bank |  | Consolidated
| Notes | 12/31/2021 | 12/31/2020 | 12/31/2021 | 12/31/2020
Current Liabilities |  | 581,835,528 | 639,939,624 | 571,159,070 | 653,999,366
Deposits and Other Financial Instruments |  | 570,676,801 | 612,837,974 | 552,620,227 | 603,022,424
Deposits | 17 | 302,306,231 | 292,520,822 | 298,306,809 | 290,741,035
Money Market Funding | 17 | 85,154,534 | 119,188,451 | 79,933,047 | 114,214,008
Local Borrowings | 17 | 76,021,633 | 53,750,603 | 76,026,549 | 53,790,402
Domestic Onlendings - Official Institutions | 17 | 4,387,014 | 4,920,596 | 4,387,014 | 4,920,596
Funds from Acceptance and Issuance of Securities | 17 | 28,875,943 | 36,043,882 | 27,581,480 | 30,549,046
Derivative Financial Instruments | 6 | 14,479,201 | 17,389,567 | 6,956,577 | 18,372,819
Other Financial Liabilities | 18.a | 59,452,245 | 89,024,053 | 59,428,751 | 90,434,518
Other Liabilities |  | 10,218,257 | 26,145,866 | 16,164,475 | 48,710,732
Provision for Tax Risks and Legal Obligations | 20.b | 87,702 | 33,573 | 171,130 | 115,852
Provision for Judicial and Administrative Proceedings - Labor and Civil Lawsuits | 20.b | 1,565,666 | 2,343,001 | 1,665,134 | 2,457,423
Other Provisions | 19 | 1,527,594 | 1,348,726 | 5,730,626 | 5,365,387
Others | 19 | 7,037,296 | 22,420,566 | 8,597,586 | 40,772,070
Current Tax Liabilities | 11 | 940,470 | 955,784 | 2,374,368 | 2,266,210
Long-Term Liabilities |  | 319,776,644 | 270,788,267 | 311,837,837 | 265,292,088
Deposits and Other Financial Instruments | 262.445.497 | 232,775,324 | 245,356,883 | 221,416,627
Deposits | 17 | 104,576,178 | 99,950,659 | 105,332,878 | 99,310,763
Money Market Funding | 17 | 15,715,553 | 40,783,009 | 15,715,553 | 40,783,009
Local Borrowings | 17 | 3,707,117 | 1,221,159 | 3,707,117 | 1,221,159
Domestic Onlendings - Official Institutions | 17 | 7,466,070 | 7,827,793 | 7,466,070 | 7,827,793
Funds from Acceptance and Issuance of Securities | 17 | 86,967,036 | 51,015,924 | 67,799,380 | 40,078,721
Derivative Financial Instruments | 6 | 17,676,138 | 17,737,559 | 17,690,654 | 17,896,646
Other Financial Liabilities | 18.a | 26,337,405 | 14,239,221 | 27,645,231 | 14,298,536
Other Liabilities |  | 55,300,978 | 33,579,893 | 63,772,477 | 38,833,292
Provision for Tax Risks and Legal Obligations | 20.b | 4,224,532 | 4,216,171 | 6,577,554 | 6,591,441
Provision for Judicial and Administrative Proceedings - Labor and Civil Lawsuits | 20.b | 3,468,009 | 3,578,881 | 3,660,582 | 3,884,857
Other Provisions | 19 | 931,767 | 811,461 | 1,036,486 | 896,819
Others | 19 | 46,676,670 | 24,973,380 | 52,497,855 | 27,460,175
Deferred Tax Liabilities |  | 2,030,169 | 4,433,050 | 2,708,477 | 5,042,170
Deferred Income |  | 360,501 | 313,983 | 382,255 | 355,526
Stockholders' Equity | 21 | 78,844,071 | 79,182,877 | 78,739,563 | 78,968,183
Capital | 21.a | 55,000,000 | 57,000,000 | 55,000,000 | 57,000,000
Capital Reserves | 21.c | 387,537 | 302,665 | 400,701 | 298,313
Profit Reserves | 21.c | 27,954,392 | 23,128,797 | 27,445,196 | 22,511,135
Adjustment to Fair Value |  | (3,784,819) | (457,227) | (3,393,295) | (49,907)
Acumulated Profits |  | - | - | - | -
(-) Treasury Shares | 21.d | (713,039) | (791,358) | (713,039) | (791,358)
Non Controlling Interest | 21.e | - | - | 1,257,244 | 1,150,708
Total Stockholders' Equity |  | 78,844,071 | 79,182,877 | 79,996,808 | 80,118,891
Total Liabilities |  | 980,816,744 | 990,224,751 | 963,375,970 | 999,765,872

The accompanying notes from Management are an integral part of these financial statements.

# Statement of Income

|  |  |  | Bank |  |  | Consolidated
| Notes | 07/01 to 12/31/2021 | 01/01 to 12/31/2021 | 01/01 to 12/31/2020 | 07/01 to 12/31/2021 | 01/01 to 12/31/2021 | 01/01 to 12/31/2020
Income Related to Financial Operations |  | 64,417,311 | 89,510,090 | 99,165,058 | 68,859,100 | 99,112,242 | 108,988,273
Loan Operations |  | 29,614,606 | 49,671,784 | 46,237,064 | 35,754,810 | 61,171,882 | 57,764,083
Leasing Operations |  | - | - | - | 136,864 | 251,098 | 287,529
Securities Transactions | 6.a | 25,357,665 | 28,372,573 | 57,259,976 | 23,639,597 | 25,419,994 | 54,234,954
Derivatives Transactions |  | 5,324,592 | 7,617,437 | (277,672) | 5,200,802 | 8,411,746 | 747,518
Foreign Exchange Operations |  | 2,398,984 | 1,434,356 | (5,605,733) | 2,397,324 | 1,432,696 | (5,605,733)
Compulsory Deposits |  | 1,721,464 | 2,413,940 | 1,551,423 | 1,729,703 | 2,424,826 | 1,559,922
Expenses on Financial Operations |  | (50,058,822) | (56,931,567) | (83,174,153) | (50,898,618) | (59,797,367) | (87,750,952)
Funding Operations Market | 17.b | (30,341,909) | (34,550,727) | (44,594,777) | (29,526,864) | (34,635,027) | (45,880,675)
Borrowings and Onlendings Operations |  | (12,593,942) | (9,424,889) | (24,511,485) | (12,600,185) | (9,430,355) | (24,542,771)
Operations of Sale or Transfer of Financial Assets | (479.667) | (375,913) | (851,467) | (479,638) | (375,877) | (851,335)
Allowance for Loan Losses | 8.e | (6,643,304) | (12,580,038) | (13,216,424) | (8,291,931) | (15,356,108) | (16,476,171)
Gross Income Related to Financial Operations |  | 14,358,489 | 32,578,523 | 15,990,905 | 17,960,482 | 39,314,875 | 21,237,321
Other Operating Revenues (Expenses) |  | (5,838,931) | (11,420,476) | (8,479,146) | (8,124,186) | (15,652,312) | (12,555,051)
Banking Service Fees | 23 | 5,678,070 | 10,816,722 | 9,536,192 | 7,147,332 | 14,007,589 | 13,184,767
Income Related to Bank Charges | 23 | 2,344,494 | 4,686,933 | 4,590,143 | 2,664,120 | 5,355,587 | 5,279,203
Personnel Expenses | 24 | (3,053,909) | (6,027,467) | (6,220,134) | (3,645,379) | (7,131,154) | (7,177,217)
Other Administrative Expenses | 25 | (6,478,688) | (13,194,063) | (11,337,530) | (6,485,388) | (13,530,465) | (12,800,395)
Tax Expenses | 11.d | (1,479,917) | (3,371,632) | (2,841,346) | (2,094,400) | (4,531,027) | (3,980,474)
Investments in Affiliates and Subsidiaries | 14 | 1,717,314 | 3,676,647 | 3,007,124 | 40,830 | 69,396 | 51,718
Other Operating Revenues | 26 | 1,474,800 | 2,978,645 | 4,600,025 | 2,263,623 | 4,921,425 | 6,265,868
Other Operating Expenses | 27 | (6,041,095) | (10,986,261) | (9,813,620) | (8,014,924) | (14,813,663) | (13,378,521)
Operating Income |  | 8,519,558 | 21,158,047 | 7,511,759 | 9,836,296 | 23,662,563 | 8,682,270
Non-Operating Income | 28 | 6,251 | 58,835 | 240,290 | (19,077) | 9,000 | 238,967
Income Before Taxes on Income and Profit Sharing | 8,525,809 | 21,216,882 | 7,752,049 | 9,817,219 | 23,671,563 | 8,921,237
Income Tax and Social Contribution | 11 | 377,085 | (4,360,778) | 7,972,186 | (576,346) | (6,503,225) | 6,539,467
Provision for Income Tax |  | 1,502,099 | (1,132,791) | (28,965) | 871,514 | (2,628,111) | (1,519,306)
Provision for Social Contribution Tax |  | 1,151,916 | (1,029,090) | (35,590) | 600,579 | (2,025,626) | (835,326)
Deferred Tax Credits |  | (2,276,930) | (2,198,897) | 8,036,741 | (2,048,439) | (1,849,488) | 8,894,099
Profit Sharing |  | (1,002,463) | (1,860,596) | (1,668,087) | (1,119,206) | (2,059,673) | (1,857,937)
Non Controlling Interest | 21.e | - | - | - | (53,031) | (120,949) | (133,387)
Net Income |  | 7,900,431 | 14,995,508 | 14,056,148 | 8,068,636 | 14,987,716 | 13,469,380
Number of Shares (Thousands) | 21.a | 7,498.531 | 7,498.531 | 7,498.531 | - |  |
$) |  | 1,053.60 | 1,999.79 | 1,874.52 | - |  |

The accompanying notes from Management are an integral part of these financial statements.

# Statement of Comprehensive Income

|  |  | Bank |  |  | Consolidated
| 07/01 to 12/31/2021 | 01/01 to 12/31/2021 | 01/01 to 12/31/2020 | 07/01 to 12/31/2021 | 01/01 to 12/31/2021 | 01/01 to 12/31/2020
Profit for the Period | 7,900,431 | 14,995,508 | 14,056,148 | 8,068,636 | 14,987,716 | 13,469,380
Other Comprehensive Income that will be subsequently reclassified for profit or loss when specific conditions are met: | (1,993,306) | (3,581,648) | (1,291,042) | (1,995,805) | (3,597,444) | (895,443)
Available-for-sale financial assets | (1,557,596) | (2,613,797) | (1,157,351) | (1,560,096) | (2,629,593) | (775,316)
Available-for-sale financial assets | (2,480,954) | (4,202,188) | (2,505,243) | (2,784,609) | (4,711,126) | (1,703,396)
Related Companies | (295,760) | (482,361) | 95,130 | - | - | -
Income taxes | 1,219,118 | 2,070,752 | 1,252,762 | 1,224,513 | 2,081,533 | 928,080
Cash flow hedges | (435,710) | (967,851) | (133,691) | (435,709) | (967,851) | (120,127)
Cash flow hedges | (960,095) | (1,615,600) | (93,213) | (894,017) | (1,740,909) | (57,271)
Related Companies | 66,077 | (125,309) | 22,378 | - | - |
Income taxes | 458,308 | 773,058 | (62,856) | 458,308 | 773,058 | (62,856)
Other Comprehensive Income that won't be reclassified for Net income: | 129,415 | 254,056 | 572,062 | 129,415 | 254,056 | 572,062
Defined Benefits plan | 129,415 | 254,056 | 572,062 | 129,415 | 254,056 | 572,062
Defined Benefits plan | 311,212 | 575,560 | 1,130,271 | 311,212 | 575,560 | 1,130,271
Income taxes | (181,797) | (321,504) | (558,208) | (181,797) | (321,504) | (558,209)
Comprehensive Income for the Period | 6,036,540 | 11,667,916 | 13,337,168 | 6,202,246 | 11,644,328 | 13,145,999
Attributable to parent company |  |  |  | 6,149,215 | 11,523,379 | 13,012,612
Attributable to non-controlling interests |  |  |  | 53,031 | 120,949 | 133,387
Total |  |  |  | 6,202,246 | 11,644,328 | 13,145,999

The accompanying notes from Management are an integral part of these financial statements.

# Statement of Changes in Stockholders' Equity – Bank

|  |  |  |  |  |  |  | Profit Reserves |  | Adjustment to Fair Value |  |  |  |  |  |  |
|  | Notes |  | Capital |  | Capital Reserves |  | Legal Reserve |  | Reserve for Dividend Equalization |  | Own Position |  | Affiliates and Subsidiaries |  | Others Adjustment to Fair Value |  | Retained Earnings |  | (-) Treasury Shares |  | Total |
Balances as of December 31, 2019 |  |  |  | 57,000,000 |  | 197,369 |  | 3,818,064 |  | 9,091,672 |  | 3,920,714 |  | 91,380 |  | (3,750,341) |  | - |  | (681,135) |  | 69,687,723 |
Employee Benefit Plans |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | 572,062 |  | - |  | - |  | 572,062 |
Treasury Shares |  | 21.d |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (110,223) |  | (110,223) |
Result of Treasury Shares |  | 21.d |  | - |  | (15,068) |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (15,068) |
Reservations for Share - Based Payment |  |  |  | - |  | 120,364 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 120,364 |
Adjustment to Fair Value - Securities and Derivative Financial Instruments |  |  |  | - |  | - |  | - |  | - |  | (1,323,847) |  | 32,805 |  | - |  | - |  | - |  | (1,291,042) |
Net Income |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 14,056,148 |  | - |  | 14,056,148 |
Allocations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Legal Reserve |  | 21.c |  | - |  | - |  | 702,807 |  | - |  | - |  | - |  | - |  | (702,807) |  | - |  | - |
Interest on Capital |  | 21.b |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (3,325,000) |  | - |  | (3,325,000) |
Minimum Mandatory Dividend |  | 21.b |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (512,087) |  | - |  | (512,087) |
Reserve for Dividend Equalization |  | 21.c |  | - |  | - |  | - |  | 9,516,254 |  | - |  | - |  | - |  | (9,516,254) |  | - |  | - |
Balances as of December 31, 2020 |  |  |  | 57,000,000 |  | 302,665 |  | 4,520,871 |  | 18,607,926 |  | 2,596,867 |  | 124,185 |  | (3,178,279) |  | - |  | (791,358) |  | 79,182,877 |
Changes in the Period |  |  |  | - |  | 105,296 |  | 702,807 |  | 9,516,254 |  | (1,323,847) |  | 32,805 |  | 572,062 |  | - |  | (110,223) |  | 9,495,154 |
|  |  |  |  |  |  |  | Profit Reserves |  | Adjustment to Fair Value |  |  |  |  |  |  |
|  | Notes |  | Capital |  | Capital Reserves |  | Legal Reserve |  | Reserve for Dividend Equalization |  | Own Position |  | Affiliates and Subsidiaries |  | Others Adjustment to Fair Value |  | Retained Earnings |  | (-) Treasury Shares |  | Total |
Balances as of December 31, 2020 |  |  |  | 57,000,000 |  | 302,665 |  | 4,520,872 |  | 18,607,926 |  | 2,596,867 |  | 124,185 |  | (3,178,279) |  | - |  | (791,358) |  | 79,182,878 |
Employee Benefit Plan |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | 254,056 |  | - |  | - |  | 254,056 |
Treasury Shares |  | 21.d |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 78,319 |  | 78,319 |
Result of Treasury Shares |  | 21.d |  | - |  | 40,821 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 40,821 |
Reservations for Share - Based Payment |  |  |  | - |  | 44,051 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 44,051 |
Adjustment to Fair Value - Securities and Derivative Financial Instruments |  |  |  | - |  | - |  | - |  | - |  | (2,985,149) |  | (596,500) |  | - |  | - |  | - |  | (3,581,649) |
Spin-off |  | 21.a |  | (2,000,000) |  | - |  | - |  | (527,444) |  | - |  | - |  | - |  | - |  | - |  | (2,527,444) |
Prescribed Dividends |  |  |  | - |  | - |  | - |  | 6,529 |  | - |  | - |  | - |  | - |  | - |  | 6,529 |
Net Income |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 14,995,508 |  | - |  | 14,995,508 |
Allocations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Legal Reserve |  | 21.c |  | - |  | - |  | 749,775 |  | - |  | - |  | - |  | - |  | (749,775) |  | - |  | - |
Dividends |  | 21.b |  | - |  | - |  | - |  | (200,000) |  | - |  | - |  | - |  | (5,800,000) |  | - |  | (6,000,000) |
Interest on Capital |  | 21.b |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (3,649,000) |  | - |  | (3,649,000) |
Reserve for Dividend Equalization |  | 21.c |  | - |  | - |  | - |  | 4,796,733 |  | - |  | - |  | - |  | (4,796,733) |  | - |  | - |
Balances as of December 31, 2021 |  |  |  | 55,000,000 |  | 387,537 |  | 5,270,648 |  | 22,683,744 |  | (388,282) |  | (472,315) |  | (2,924,223) |  | - |  | (713,039) |  | 78,844,071 |
Changes in the Period |  |  |  | (2,000,000) |  | 84,872 |  | 749,775 |  | 4,075,818 |  | (2,985,149) |  | (596,500) |  | 254,056 |  | - |  | 78,319 |  | (338,808) |
|  |  |  |  |  |  |  | Profit Reserves |  | Adjustment to Fair Value |  |  |  |  |  |  |
|  | Notes |  | Capital |  | Capital Reserves |  | Legal Reserve |  | Reserve for Dividend Equalization |  | Own Position |  | Affiliates and Subsidiaries |  | Others Adjustment to Fair Value |  | Retained Earnings |  | (-) Treasury Shares |  | Total |
Balances as of June 30, 2021 |  |  |  | 55,000,000 |  | 273,136 |  | 4,875,625 |  | 21,820,805 |  | 1,375,342 |  | (242,632) |  | (3,053,638) |  | - |  | (709,770) |  | 79,338,868 |
Employee Benefit Plans |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | 129,415 |  | - |  | - |  | 129,415 |
Treasury Shares |  | 21.d |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (3,269) |  | (3,269) |
Result of Treasury Shares |  | 21.d |  | - |  | 239 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 239 |
Reservations for Share - Based Payment |  |  |  | - |  | 114,162 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 114,162 |
Adjustment to Fair Value - Securities and Derivative Financial Instruments |  |  |  | - |  | - |  | - |  | - |  | (1,763,623) |  | (229,683) |  | - |  | - |  | - |  | (1,993,306) |
Prescribed Dividends |  |  |  | - |  | - |  | - |  | 6,529 |  | - |  | - |  | - |  | - |  | - |  | 6,529 |
Net Income |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 7,900,431 |  | - |  | 7,900,431 |
Allocations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Legal Reserve |  | 21.c |  | - |  | - |  | 395,022 |  | - |  | - |  | - |  | - |  | (395,022) |  | - |  | - |
Interest on Capital |  | 21.b |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (3,649,000) |  | - |  | (3,649,000) |
Dividend |  | 21.b |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (3,000,000) |  | - |  | (3,000,000) |
Reserve for Dividend Equalization |  | 21.c |  | - |  | - |  | - |  | 856,410 |  | - |  | - |  | - |  | (856,410) |  | - |  | - |
Balances as of December 31, 2021 |  |  |  | 55,000,000 |  | 387,537 |  | 5,270,648 |  | 22,683,744 |  | (388,281) |  | (472,315) |  | (2,924,223) |  | - |  | (713,039) |  | 78,844,071 |
Changes in the Semester |  |  |  | - |  | 114,401 |  | 395,023 |  | 862,939 |  | (1,763,623) |  | (229,683) |  | 129,415 |  | - |  | (3,269) |  | (494,797) |

The accompanying notes from Management are an integral part of these financial statements.

# Statement of Changes in Stockholders' Equity – Consolidated

|  |  |  |  |  |  | Profit Reserves |  | Adjustment to Fair Value |  |  |  |  |  |  |  |  |  |
| Notes |  | Capital |  | Capital Reserves |  | Legal Reserve |  | Reserve for Dividend Equalization |  | Own Position |  | Affiliates and Subsidiaries |  | Others Adjustments to Fair Value |  | Retained Earnings |  | (-) Treasury Shares |  | Stockholders' Equity |  | Minority Interest |  | Total Stockholders' Equity
Balances as of December 31, 2019 | 57,000,000 |  | 194,115 |  | 3,818,065 |  | 9,168,713 |  | 3,932,436 |  | 91,380 |  | (3,750,342) |  | - |  | (681,135) |  | 69,773,232 |  | 1,695,361 |  | 71,468,593
Employee Benefit Plans |  | - |  | - |  | - |  | - |  | - |  | - |  | 572,062 |  | - |  | - |  | 572,062 |  | - |  | 572,062
Treasury Shares | 21.d |  | - |  | (15,068) |  | - |  | - |  | - |  | - |  | - |  | - |  | (110,223) |  | (125,291) |  | - |  | (125,291)
Reservations for Share - Based Payment |  |  | - |  | 119,266 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 119,266 |  | - |  | 119,266
Adjustment to Fair Value - Securities and Derivative Financial Instruments |  | - |  | - |  | - |  | - |  | (928,249) |  | 32,806 |  | - |  | - |  | - |  | (895,443) |  | - |  | (895,443)
Net Income |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 13,469,380 |  | - |  | 13,469,380 |  | - |  | 13,469,380
Allocations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Legal Reserve | 21.c |  | - |  | - |  | 702,807 |  | - |  | - |  | - |  | - |  | (702,807) |  | - |  | - |  | - |  | -
Interests on Capital | 21.b |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (3,325,000) |  | - |  | (3,325,000) |  | - |  | (3,325,000)
Dividends | 21.b |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (512,087) |  | - |  | (512,087) |  | - |  | (512,087)
Reserve for Dividend Equalization | 21.c |  | - |  | - |  | - |  | 9,516,254 |  | - |  | - |  | - |  | (9,516,254) |  | - |  | - |  | - |  | -
Unrealized Profit |  |  | - |  | - |  | - |  | (586,768) |  | - |  | - |  | - |  | 586,768 |  | - |  | - |  | - |  | -
Non Controlling Interest Results | 21.e |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (133,387) |  | (133,387)
Others |  |  | - |  | - |  | - |  | (107,936) |  | - |  | - |  | - |  | - |  | - |  | (107,936) |  | (411,266) |  | (519,202)
Balances as of December 31, 2020 | 57,000,000 |  | 298,313 |  | 4,520,872 |  | 17,990,263 |  | 3,004,187 |  | 124,186 |  | (3,178,280) |  | - |  | (791,358) |  | 78,968,183 |  | 1,150,708 |  | 80,118,891
Changes in the Period |  |  | - |  | 104,198 |  | 702,807 |  | 8,821,550 |  | (928,249) |  | 32,806 |  | 572,062 |  | - |  | (110,223) |  | 9,194,951 |  | (544,653) |  | 8,650,298

|  |  |  |  |  |  | Profit Reserves |  | Adjustment to Fair Value |  |  |  |  |  |  |  |  |  |
| Notes |  | Capital |  | Capital Reserves |  | Legal Reserve |  | Reserve for Dividend Equalization |  | Own Position |  | Affiliates and Subsidiaries |  | Others Adjustments to Fair Value |  | Retained Earnings |  | (-) Treasury Shares |  | Stockholders' Equity |  | Minority Interest |  | Total Stockholders' Equity
Balances as of December 31, 2020 |  |  | 57,000,000 |  | 298,313 |  | 4,520,872 |  | 17,990,263 |  | 3,004,187 |  | 124,186 |  | (3,178,280) |  | - |  | (791,358) |  | 78,968,183 |  | 1,150,708 |  | 80,118,891
Employee Benefit Plans |  | - |  | - |  | - |  | - |  | - |  | - |  | 254,057 |  | - |  | - |  | 254,057 |  | - |  | 254,057
Treasury Shares | 21.d |  | - |  | 40,821 |  | - |  | - |  | - |  | - |  | - |  | - |  | 78,319 |  | 119,140 |  | - |  | 119,140
Reservations for Share - Based Payment |  |  | - |  | 61,567 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 61,567 |  | - |  | 61,567
Adjustment to Fair Value - Securities and Derivative Financial Instruments |  |  | - |  | - |  | - |  | - |  | (3,000,945) |  | (596,500) |  | - |  | - |  | - |  | (3,597,445) |  | - |  | (3,597,445)
Spin-off | 21.a |  | (2,000,000) |  | - |  | - |  | (527,444) |  | - |  | - |  | - |  | - |  | - |  | (2,527,444) |  | - |  | (2,527,444)
Prescribed Dividends |  |  | - |  | - |  | - |  | 6,529 |  | - |  | - |  | - |  | - |  | - |  | 6,529 |  | - |  | 6,529
Net Income |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 14,987,716 |  | - |  | 14,987,716 |  | - |  | 14,987,716
Allocations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Legal Reserve | 21.c |  | - |  | - |  | 749,386 |  | - |  | - |  | - |  | - |  | (749,386) |  | - |  | - |  | - |  | -
Dividend | 21.b |  | - |  | - |  | - |  | (200,000) |  | - |  | - |  | - |  | (5,800,000) |  | - |  | (6,000,000) |  | - |  | (6,000,000)
Interest on Capital | 21.b |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (3,649,000) |  | - |  | (3,649,000) |  | - |  | (3,649,000)
Reserve for Dividend Equalization | 21.c |  | - |  | - |  | - |  | 5,298,525 |  | - |  | - |  | - |  | (5,298,525) |  | - |  | - |  | - |  | -
Unrealized Profit |  |  | - |  | - |  | - |  | (509,195) |  | - |  | - |  | - |  | 509,195 |  | - |  | - |  | - |  | -
Non Controlling Interest Results | 21.e |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 120,949 |  | 120,949
Others |  |  | - |  | - |  | - |  | 116,260 |  | - |  | - |  | - |  | - |  | - |  | 116,260 |  | (14,412) |  | 101,848
Balances as of December 31, 2021 | 55,000,000 |  | 400,701 |  | 5,270,258 |  | 22,174,938 |  | 3,242 |  | (472,314) |  | (2,924,223) |  | - |  | (713,039) |  | 78,739,563 |  | 1,257,245 |  | 79,996,808
Changes in the Period |  |  | (2,000,000) |  | 102,388 |  | 749,386 |  | 4,184,675 |  | (3,000,945) |  | (596,500) |  | 254,057 |  | - |  | 78,319 |  | (228,620) |  | 106,537 |  | (122,083)

|  |  |  |  |  |  | Profit Reserves |  | Adjustment to Fair Value |  |  |  |  |  |  |  |  |  |
| Notes |  | Capital |  | Capital Reserves |  | Legal Reserve |  | Reserve for Dividend Equalization |  | Own Position |  | Affiliates and Subsidiaries |  | Others Adjustments to Fair Value |  | Retained Earnings |  | (-) Treasury Shares |  | Stockholders' Equity |  | Minority Interest |  | Total Stockholders' Equity
Balances as of June 30, 2021 |  |  | 55,000,000 |  | 265,784 |  | 4,866,826 |  | 21,128,435 |  | 1,773,124 |  | (246,391) |  | (3,053,639) |  | - |  | (709,770) |  | 79,024,369 |  | 1,297,163 |  | 80.321.532
Employee Benefit Plans |  | - |  | - |  | - |  | - |  | - |  | - |  | 129,416 |  | - |  | - |  | 129,416 |  | - |  | 129,416
Treasury Shares | 21.d |  | - |  | 239 |  | - |  | - |  | - |  | - |  | - |  | - |  | (3,269) |  | (3,030) |  | - |  | (3.030)
Reservations for Share – Based Payment |  |  | - |  | 134,678 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 134,678 |  | - |  | 134.678
Adjustment to Fair Value - Securities and Derivative Financial Instruments |  | - |  | - |  | - |  | - |  | (1,769,882) |  | (225,923) |  | - |  | - |  | - |  | (1,995,805) |  | - |  | (1,995,805)
Prescribed Dividends |  | - |  | - |  | - |  | 6,529 |  | - |  | - |  | - |  | - |  | - |  | 6,529 |  | - |  | 6,529
Net Income |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 8,068,636 |  | - |  | 8,068,636 |  | - |  | 8,068,636
Allocations: |  |  |  |  |  |  |  |  |  |  | - |  |  |  |  |  |  |  |  |  |  |  |  |  |
Legal Reserve | 21.c |  | - |  | - |  | 403,432 |  | - |  | - |  | - |  | - |  | (403,432) |  | - |  | - |  | - |  | -
Interest on Capital | 21.b |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (3,649,000) |  | - |  | (3,649,000) |  | - |  | (3.649.000)
Dividend | 21.b |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (3,000,000) |  | - |  | (3,000,000) |  | - |  | (3.000.000)
Reserve for Dividend Equalization | 21.c |  | - |  | - |  | - |  | 2,050,999 |  | - |  | - |  | - |  | (2,050,999) |  | - |  | - |  | - |  | -
Unrealized Profit |  |  | - |  | - |  | - |  | (1,034,795) |  | - |  | - |  | - |  | 1,034,795 |  | - |  | - |  | - |  | -
Non-Controlling Interest | 21.e |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 53,031 |  | 53.031
Others |  |  | - |  | - |  | - |  | 23,770 |  | - |  | - |  | - |  | - |  | - |  | 23,770 |  | (92,949) |  | (69,179)
Balances as of December 31, 2021 | 55.000.000 |  | 400,701 |  | 5,270,258 |  | 22,174,938 |  | 3,242 |  | (472,314) |  | (2,924,223) |  | - |  | (713,039) |  | 78,739,563 |  | 1,257,245 |  | 79,996,808
Changes in the Semester |  | - |  | 134,917 |  | 403,432 |  | 1,046,503 |  | (1,769,882) |  | (225,923) |  | 129,416 |  | - |  | (3,269) |  | (284,806) |  | (39,918) |  | (324,724)

The accompanying notes from Management are an integral part of these financial statements.

# Statement of Cash Flows

|  |  | Bank |  |  |  | Consolidated
|  | 07/01 to 12/31/2021 | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2020 |  | 07/01 to 12/31/2021 |  | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2020
| Notes |  |  |  |
Operational Activities |  |  |  |  |  |  |  |  |  |  |
Net Income |  | 7,900,431 | 14,995,508 |  | 14,056,148 |  | 8,068,636 |  | 14,987,716 |  | 13,469,380
Adjustment to Net Income |  | (17,013,687) | 40,318,423 |  | (7,202,429) |  | (13,736,950) |  | 46,920,265 |  | 1,387,494
Allowance for Loan Losses | 8.e | 6,643,304 | 12,580,038 |  | 13,216,424 |  | 8,291,931 |  | 15,356,108 |  | 16,476,171
Provision for Legal Proceedings and Administrative and Legal Obligations | 20.c | 666,611 | 1,349,302 |  | 1,394,832 |  | 838,551 |  | 1,586,786 |  | 1,859,133
Monetary Adjustment of Provision for Legal Proceedings and Administrative and Legal Obligations | 20.c | 354,297 | 611,011 |  | 316,431 |  | 388,405 |  | 669,909 |  | 366,578
Deferred Tax Credits and Liabilities | 11.a & b | 2,560,987 | 3,005,190 |  | (7,500,998) |  | 2,287,078 |  | 2,728,833 |  | (7,641,153)
Equity in Affiliates and Subsidiaries | 14 | (1,717,314) | (3,676,647) |  | (3,007,124) |  | (40,830) |  | (69,396) |  | (51,718)
Depreciation and Amortization | 25 | 1,348,455 | 3,637,533 |  | 2,641,934 |  | 1,408,506 |  | 3,822,494 |  | 3,094,511
Recognition (Reversal) Allowance for Other Assets Losses | 28 | 1,301 | 19,309 |  | (11,534) |  | 13,052 |  | 25,953 |  | (24,629)
Gain (Loss) on Sale of Other Assets | 28 | 130,330 | 81,439 |  | (72,815) |  | 114,447 |  | 68,882 |  | (64,108)
Gain (Loss) on Sale of Investments | 28 | - | - |  | (168,588) |  | (118) |  | (59) |  | (168,588)
Provision for Financial Guarantees | 27 | (68,864) | - |  | - |  | (68,864) |  | - |  | -
Monetary Adjustment of Escrow Deposits | 26 | (242,357) | (331,513) |  | (186,159) |  | (331,737) |  | (437,885) |  | (235,800)
Recoverable Taxes | 26 | (50,395) | (197,801) |  | (119,320) |  | (63,684) |  | (219,257) |  | (166,091)
Effects of Changes in Foreign Exchange Rates on Cash and Cash Equivalents | 5.325 | - |  | - |  | 5,325 |  | - |  | -
Effects of Changes in Foreign Exchange Rates on Assets and Liabilities | (26.635.719) | 23,236,338 |  | (12,150,805) |  | (26,635,719) |  | 23,236,338 |  | (12,150,805)
Others |  | (9,648) | 4,224 |  | (1,554,707) |  | 56,707 |  | 151,559 |  | 93,993
Changes on Assets and Liabilities |  | 16,735,262 | (42,865,406) |  | 19,131,193 |  | 14,020,449 |  | (45,245,225) |  | 29,383,588
Decrease (Increase) in Interbank Investments |  | 8,945,566 | 33,110,288 |  | (30,183,420) |  | 14,280,875 |  | 43,845,300 |  | (28,351,422)
Decrease (Increase) in Securities and Derivative Financial Instruments | (8.960.300) | 2,681,298 |  | (53,030,752) |  | (10,276,876) |  | (866,918) |  | (57,200,916)
Decrease (Increase) in Lending and Leasing Operations |  | (21,042,384) | (47,440,659) |  | (79,248,979) |  | (26,442,500) |  | (57,529,326) |  | (70,360,003)
Decrease (Increase) in Other - Other - Provisions for Expected Losses Associated with Credit Risk | (867.737) | (469,012) |  | 823,244 |  | (643,963) |  | (461,635) |  | 605,492
Decrease (Increase) in Deposits on Central Bank of Brazil | (7.382.716) | (10,022,362) |  | 10,951,716 |  | (7,514,359) |  | (10,179,967) |  | 11,254,324
Decrease (Increase) in Other Financial Assets |  | 21,841,453 | 62,407,067 |  | (6,656,801) |  | 25,434,744 |  | 61,136,160 |  | (4,388,037)
Decrease (Increase) in Prepaid Expenses |  | 471,288 | 209,318 |  | (107,645) |  | 460,928 |  | 305,639 |  | 49,414
Decrease (Increase) in Other Assets |  | (2,562,110) | (5,676,353) |  | 27,159,289 |  | 4,092,051 |  | 6,795,561 |  | 25,232,030
Decrease (Increase) in Current Tax Assets |  | (3,896,617) | (1,530,289) |  | 139,380 |  | (4,428,702) |  | (1,142,828) |  | 355,937
Net Change on Other Interbank and Interbranch Accounts | 3.657.572 | (1,548,498) |  | (7,476,244) |  | 3,657,228 |  | 13,358,138 |  | (12,477,368)
Increase (Decrease) in Deposits |  | 5,452,217 | 14,410,928 |  | 118,259,315 |  | 5,052,100 |  | 13,587,889 |  | 117,123,807
Increase (Decrease) in Money Market Funding |  | (26,556,661) | (59,101,373) |  | 30,339,013 |  | (27,799,198) |  | (59,348,417) |  | 31,056,027
Increase (Decrease) in Borrowings |  | 18,424,176 | 25,748,805 |  | 7,318,412 |  | 18,429,092 |  | 25,713,921 |  | 9,892,353
Increase (Decrease) in Other Financial Liabilities |  | (2,569,024) | (93,789,615) |  | (3,503,797) |  | (7,614,984) |  | (93,562,346) |  | (5,124,944)
Increase (Decrease) in Other Liabilities |  | 35,636,911 | 38,113,847 |  | 4,410,201 |  | 30,900,265 |  | 12,968,717 |  | 11,658,422
Increase (Decrease) in Current Tax Liabilities |  | (2,390,122) | 2,554,006 |  | (113,981) |  | (1,395,433) |  | 4,778,126 |  | 1,363,656
Increase (Decrease) in Change in Deferred Income |  | (18,371) | 46,518 |  | 52,242 |  | (31,930) |  | 26,729 |  | 70,308
Income Tax Recovered/(Paid) |  | (1,447,879) | (2,569,320) |  | - |  | (2,138,889) |  | (4,669,968) |  | (1,375,492)
Net Cash Provided by (Used in) Operational Activities |  | 7,622,006 | 12,448,525 |  | 25,984,912 |  | 8,352,135 |  | 16,662,756 |  | 44,240,462
Investing Activities |  |  |  |  |  |  |  |  |  |  |
Increase in Equity at Affiliates and Subsidiaries | 14 | - | - |  | (493,156) |  | - |  | - |  | -
Purchase of Investment |  | (3,487) | (3,487) |  | (145) |  | (2,059) |  | (2,059) |  | (130)
Purchase of Fixed Assets |  | (701,458) | (1,075,927) |  | (1,076,414) |  | (740,691) |  | (1,127,830) |  | (1,437,665)
Purchase of Intangible Assets |  | (956,852) | (20,352) |  | (1,740,278) |  | (1,627,546) |  | (904,173) |  | (1,958,678)
Net Cash Received on Sale/Reduction of Investments |  | 13,345 | 13,345 |  | - |  | 13,344 |  | 13,344 |  | 6
Acquisition of Minority Residual Interest in Subsidiary | 2.c | (308,100) | (908,100) |  | (1,606,000) |  | (13,007) |  | (31,671) |  | (1,606,000)
Proceeds from Assets not in Use |  | 88,236 | 431,904 |  | 639,346 |  | 135,341 |  | 489,810 |  | 668,206
Proceeds from Property for Own Use |  | (44,938) | (21,304) |  | 101,729 |  | 40,326 |  | 613,808 |  | 163,750
Proceeds from Affiliates and Subsidiaries |  | 839 | 876,904 |  | 6,294,769 |  | - |  | - |  | 171,213
Dividends and Interest on Capital Received |  | 76,703 | 335,084 |  | 1,293,445 |  | 139,467 |  | 179,079 |  | (5,165)
Net Cash Provided by (Used in) Investing Activities |  | (1,835,712) | (371,933) |  | 3,413,296 |  | (2,054,825) |  | (769,692) |  | (4,004,463)
Financing Activities |  |  |  |  |  |  |  |  |  |  |
Purchase of Own Share | 21.d | (3,269) | 78,319 |  | (110,223) |  | (3,269) |  | 78,319 |  | (110,223)
Issuance of Long - Term Emissions |  | 42,965,339 | 99,229,585 |  | 71,204,332 |  | 43,116,455 |  | 96,662,999 |  | 62,324,678
Long - Term Payments |  | (49,767,726) | (96,732,607) |  | (82,628,491) |  | (50,284,805) |  | (98,017,056) |  | (84,683,718)
Dividends and Interest on Capital Paid |  | (5,487,571) | (9,545,424) |  | (10,094,087) |  | (5,880,282) |  | (9,995,696) |  | (10,211,084)
Increase (decrease) in Minority Interest |  | - | - |  | - |  | 29,394 |  | 29,394 |  | -
Net Cash Provided by (Used in) Financing Activities |  | (12,293,227) | (6,970,127) |  | (21,628,469) |  | (13,022,507) |  | (11,242,040) |  | (32,680,347)
Exchange Variation on Cash and Cash Equivalents |  | (5,325) | - |  | - |  | (5,325) |  | - |  | -
Increase (Decrease) in Cash and Cash Equivalents |  | (6,512,258) | 5,106,465 |  | 7,769,739 |  | (6,730,522) |  | 4,651,024 |  | 7,555,652
Cash and Cash Equivalents at the Beginning of Period | 4 | 40,809,894 | 29,191,171 |  | 21,421,432 |  | 40,380,861 |  | 28,999,315 |  | 21,443,663
Cash and Cash Equivalents at the End of Period | 4 | 34,297,636 | 34,297,636 |  | 29,191,171 |  | 33,650,339 |  | 33,650,339 |  | 28,999,315

The accompanying notes from Management are an integral part of these financial statements.

# Statement of Value Added

|  |  |  |  |  |  |  |  | Bank |  |  |  |  |  |  |  |  | Consolidated
|  | 07/01 to 12/31/2021 | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2020 |  | 07/01 to 12/31/2021 | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2020
| Notes |  |  |
Income Related to Financial Operations |  | 64,417,311 | 89,510,090 |  |  |  | 99,165,058 |  |  |  | 68,859,100 | 99,112,242 |  |  |  | 108,988,273 |  |
Income Related to Bank Charges and Banking Service Fees | 23 | 8,022,564 | 15,503,655 |  |  |  | 14,126,335 |  |  |  | 9,811,452 | 19,363,176 |  |  |  | 18,463,970 |  |
Allowance for Loans Losses | 8.e | (6,643,304) | (12,580,038) |  |  |  | (13,216,424) |  |  |  | (8,291,931) | (15,356,108) |  |  |  | (16,476,171) |  |
Other Revenues and Expenses |  | (4,560,044) | (7,948,781) |  |  |  | (4,969,816) |  |  |  | (5,770,378) | (9,883,238) |  |  |  | (6,870,197) |  |
Financial Expenses |  | (45,784,797) | (46,626,121) |  |  |  | (69,957,729) |  |  |  | (43,439,891) | (45,118,066) |  |  |  | (71,274,781) |  |
Third-party Input |  | (4,667,468) | (8,698,621) |  |  |  | 434,939 |  |  |  | (4,610,402) | (8,843,286) |  |  |  | (1,961,251) |  |
Materials, Energy and Others |  | (162,665) | (291,900) |  |  |  | (253,865) |  |  |  | (173,857) | (311,736) |  |  |  | (269,900) |  |
Third-Party Services | 25 | (1,211,132) | (2,282,474) |  |  |  | (2,067,985) |  |  |  | (1,204,521) | (2,472,714) |  |  |  | (2,623,065) |  |
Impairment of Assets |  | (14,899) | (14,899) |  |  |  | (3,489) |  |  |  | (14,899) | (14,899) |  |  |  | (3,489) |  |
Others |  | (3,278,772) | (6,109,348) |  |  |  | 2,760,278 |  |  |  | (3,217,125) | (6,043,937) |  |  |  | 935,203 |  |
Gross Added Value |  | 10,784,261 | 29,160,184 |  |  |  | 25,582,363 |  |  |  | 16,557,949 | 39,274,719 |  |  |  | 30,869,843 |  |
Retentions |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and Amortization | 25 | (1,348,455) | (3,637,533) |  |  |  | (2,641,934) |  |  |  | (1,408,506) | (3,822,494) |  |  |  | (3,094,511) |  |
Added Value Produced Net |  | 9,435,807 | 25,522,651 |  |  |  | 22,940,429 |  |  |  | 15,149,443 | 35,452,225 |  |  |  | 27,775,332 |  |
Added Value Received from Transfer Investments in Affiliates and Subsidiaries | 14 | 1,717,314 | 3,676,647 |  |  |  | 3,007,124 |  |  |  | 40,830 | 69,396 |  |  |  | 51,718 |  |
Added Value to Distribute |  | 11,153,121 | 29,199,298 |  |  |  | 25,947,553 |  |  |  | 15,190,273 | 35,521,621 |  |  |  | 27,827,050 |  |
Added Value Distribution |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Employee |  | 3,454,743 | 6,901,461 |  | 23.6% |  | 7,093,344 |  | 27.3% |  | 5,212,357 | 9,190,827 |  |  |  | 8,105,835 |  | 29.1%
Compensation | 24 | 1,697,980 | 3,397,120 |  |  |  | 3,623,045 |  |  |  | 1,927,617 | 3,886,537 |  |  |  | 4,102,940 |  |
Benefits | 24 | 609,055 | 1,203,198 |  |  |  | 1,243,870 |  |  |  | 794,314 | 1,500,931 |  |  |  | 1,428,339 |  |
Government Severance Indemnity Funds for Employees - FGTS | 271.424 | 433,955 |  |  |  | 315.165 |  |  |  | (192.968) | - |  |  |  | 383.024 |  |
Others |  | 876,284 | 1,867,188 |  |  |  | 1,911,264 |  |  |  | 2,683,394 | 3,803,359 |  |  |  | 2,191,532 |  |
Taxes and Contributions |  | (664,819) | 6,444,419 |  | 22.1% |  | 4,003,628 |  | 15.4% |  | 1,389,770 | 10,357,445 |  |  |  | 7,206,954 |  | 25.9%
Federal |  | (1,061,049) | 5,693,848 |  |  |  | 3,312,646 |  |  |  | 894,946 | 9,416,146 |  |  |  | 6,334,980 |  |
State |  | 294 | 630 |  |  |  | 567 |  |  |  | 437 | 813 |  |  |  | 907 |  |
Municipal |  | 395,936 | 749,941 |  |  |  | 690,415 |  |  |  | 494,387 | 940,486 |  |  |  | 871,067 |  |
Compensation of Third-Party Capital - Rental | 25 | 462,765 | 857,909 |  | 2.9% |  | 794,433 |  | 3.1% |  | 466,480 | 864,685 |  |  |  | 811,875 |  | 2.9%
Remuneration of Interest on Capital |  | 7,900,431 | 14,995,508 |  | 51.4% |  | 14,056,148 |  | 54.2% |  | 8,121,667 | 15,108,665 |  |  |  | 11,702,386 |  | 42.1%
Dividends | 21.b | 3,000,000 | 6,000,000 |  |  |  | 512,087 |  |  |  | 3,000,000 | 6,000,000 |  |  |  | 512,087 |  |
Interest on Equity | 21.b | 3,649,000 | 3,649,000 |  |  |  | 3,325,000 |  |  |  | 3,649,000 | 3,649,000 |  |  |  | 3,325,000 |  |
Profit Reinvestment |  | 1,251,431 | 5,346,508 |  |  |  | 10,219,061 |  |  |  | 1,525,698 | 5,580,614 |  |  |  | 7,998,686 |  |
Participation Results of Non-Controlling Stockholders | 21.f | - | - |  |  |  | - |  |  |  | (53,031) | (120,949) |  |  |  | (133,387) |  |
Total |  | 11,153,121 | 29,199,298 |  | 100.0% |  | 25,947,553 |  | 100.0% |  | 15,190,273 | 35,521,621 |  |  |  | 27,827,050 |  | 100.0%

The accompanying notes from Management are an integral part of these financial statements.

# 1. General Information

Banco Santander (Brasil) SA (Banco Santander or Banco), directly and indirectly controlled by Banco Santander, SA, headquartered in Spain (Banco Santander Spain), is the leading institution of the Financial and Prudential Conglomerates (Santander Conglomerate) before the Central Bank of Brasil (Bacen), incorporated as a joint stock company, headquartered at Avenida Presidente Juscelino Kubitschek, 2041, Cj. 281, Block A, Cond. Wtorre JK - Vila Nova Conceição - São Paulo - SP. Banco Santander operates as a multiple bank and develops its operations through its commercial, investment, credit, financing and investment, real estate credit, leasing and foreign exchange portfolios. Through its subsidiaries, it also operates in the payment institution, consortium administration, securities brokerage, insurance brokerage, consumer finance, digital platforms, benefits management, management and recovery of non-performing loans, capitalization and private pension markets and provision and administration of food, meal and other vouchers. Operations are carried out in the context of a group of institutions that operate in an integrated manner in the financial market. The benefits and costs corresponding to the services provided are absorbed between them and are carried out in the normal course of business and under commutative conditions.

# 2. Presentation of Financial Statements

The individual and consolidated financial statements of Banco Santander, which include its branches abroad (Bank) and the consolidated statements (Consolidated), were prepared in accordance with accounting practices adopted in Brazil, established by the Brazilian Corporate Law, in together with the rules of the National Monetary Council (CMN), of Bacen and the model of the document provided for in the Accounting Plan of Institutions of the National Financial System (COSIF), of the Brazilian Securities Commission (CVM), in which they do not conflict with the rules issued by Bacen and show all relevant information specific to the financial statements, which are consistent with those used by Management in its management.

CMN Resolution No. 4,818/2020 and BCB Resolution No. 2/2020 establish the general criteria and procedures for preparing and disclosing the Financial Statements. BCB Resolution No. 2/2020, revoked Bacen Circular No. 3959/2019, and entered into force as of January 1, 2021, being applicable in the preparation, disclosure and remittance of Financial Statements. Said standard, among other requirements, determined the separate disclosure in an explanatory note of recurring and non-recurring results.

On May 27, 2021, CMN Resolution No. 4,911 was published, which will become effective on January 1, 2022 and propose changes to the documents and disclosures to be made. The Bank is in the process of evaluating and adapting to the Resolution, which determines the extinction of the documents:

· Trial Balance and Balance Sheet - headquarters and dependence (documents 4020 and 4026);

· Analytical Balance Sheet - Consolidated Position of Branches and Equity Interests Abroad (document 4343);

· Balance Sheet and Balance Sheet of the Financial Conglomerate (documents 4040 and 4046);

· Analytical Balance Sheet - Individual Position of Equity Interest Abroad (document 4313) will be simplified;

· Prudential Conglomerate Financial Statements with Explanatory Notes / Auditor's Opinion

The resolution maintains the obligation to publish documents:

· Analytical Balance Sheet – Prudential Conglomerate, monthly (CADOC 4060);

· Balance Sheet – Prudential Conglomerate, semiannually (CADOC 4066), for the base dates of June 30 and December 31; and

· Report of the Prudential Conglomerate, semi-annually, for the base dates of June 30 and December 31 (which will still be the subject of greater detail by the regulator).

In November 2021, CMN Resolution No. 4,966 was published, which deals with the accounting concepts and criteria applicable to financial instruments, as well as for the designation and recognition of hedging relationships (hedge accounting) the convergence of the COSIF accounting criteria to the requirements of the international standard of IFRS 9 is progressing. The Resolution enters and effective on January 1, 2025, and Banco Santander, together with the market and the Central Bank, has already started the evaluation of impact and changes necessary to meet its implementation and on the identification and treatment of expected impacts.

CMN Resolution No. 4,967, which was published in November 2021, determines criteria for recognition, measurement and evidence accounting reporting of investment properties and non-financial assets acquired for the purpose of future sale and and generation of profits based on variations in their prices in the market, the Resolution that becomes effective on January 1st 2022, is already the object of evaluation and analysis by Banco Santander to consider its impacts and procedures to be established.

In December 2021, the Central Bank of Brazil published Resolution CMN No. 4,975, which establishes compliance with the Technical pronouncement of the Accounting Pronouncements Committee (CPC) 06 (R2) – Leases, in recognition, in the mensuration, presentation and disclosure of leasing operations, which becomes effective on January 1, 2025. Banco Santander started the impact assessments and changes that will be due to adapt to the requirements of the resolution.

The Individual and Consolidated Financial Statements include the Bank and its subsidiaries and the investment funds indicated in Note 14, where the companies of the Santander Conglomerate are the main beneficiaries or holders of the main obligations. The portfolios of these investment funds are classified by type of operation and are distributed in the same categories in which they were originally allocated.

In the preparation of the individual and consolidated financial statements, equity interests, relevant balances receivable and payable, revenues and expenses arising from transactions between branches in the country, foreign branches and subsidiaries, unrealized results between these companies and highlighted the participation of minority shareholders in equity and income.

For a better presentation of certain balances of the accounts of operations with commercialization of electric energy, the comparatives are being remeasured as detailed in notes 10 and 18.a.

The preparation of the financial statements requires the adoption of estimates by Management, impacting certain assets and liabilities, disclosures on provisions and contingent liabilities, and revenues and expenses in the periods shown. Since Management's judgment involves estimates regarding the probability of occurrence of future events, the actual amounts may differ from these estimates, the main ones being provision for expected losses associated with credit risk, realization of deferred tax assets, provision for legal proceedings, civil, tax and labor, pension plan and the fair value of financial assets.

The Board of Directors authorized the issuance of the individual and consolidated financial statements for the period ended December 31, 2021, at the meeting held on February 01, 2022.

The Consolidated Financial Statements prepared based on the international accounting standards issued by the International Accounting Standards Board (IASB) for the period ended December 31, 2021, will be disclosed in the legal deadline, on the website www.santander.com.br/ri.

# 3. Significant Accounting Policies

a) Calculation of the result

The accounting method for calculating the result is on an accrual basis and considers income, charges and monetary or exchange variations, calculated at official indices or rates, pro rata day levied on assets and liabilities restated up to the balance sheet date.

b) Functional Currency

Functional Currency and Presentation Currency

CMN Resolution No. 4,524 of September 29, 2016, with prospective application from January 1, 2017, started to establish accounting procedures for recognition by financial institutions and other institutions authorized to operate by Bacen that hold investments abroad: I - the effects of exchange variations resulting from the conversion of transactions carried out in foreign currency by investees abroad into the respective functional currencies; II - the effects of exchange variations resulting from the conversion of the balances of the financial statements of investees abroad from the respective functional currencies to the national currency; and III - operations with the purpose of hedging the exchange variation of investments abroad. These changes did not impact Banco Santander's financial statements in 2020. The functional currency is the currency of the main economic environment in which the entity operates.

The financial statements are presented in Reais, the functional and presentation currency of Banco Santander and its subsidiaries, including its subsidiary and foreign branches.

The assets and liabilities of the foreign branches and subsidiary are translated into Real as follows:

• Assets and liabilities are translated at the exchange rate on the balance sheet date; and

• Income and expenses are converted at the monthly average exchange rate.

c) Current and Long-Term Assets and Liabilities

They are stated at realization and/or liability values, including income, charges and monetary or exchange variations earned and/or incurred up to the balance sheet date, calculated on a daily pro rata basis and, when applicable, the effect of adjustments to reduce the cost of assets at their market value (fair value) or realization.

Receivables and payables within 12 months are classified in current assets and liabilities, respectively. Securities classified as trading securities, regardless of their maturity date, are fully classified in current assets, as established by Bacen Circular 3068/2001.

d) Cash and Cash Equivalents

For the purposes of the statement of cash flows, cash equivalents correspond to the balances of interbank investments with immediate convertibility, subject to an insignificant risk of change in value and with an original term equal to or less than ninety days.

e) Interbank investments of liquidity and interest-bearing credits linked to Bacen

They are stated at realization and/or liability values, including income, charges and monetary or exchange variations earned and/or incurred up to the balance sheet date, calculated on a daily pro rata basis.

e.1) Repo Transactions

Sale with Repurchase Agreement

Own fixed-income securities used to back repurchase agreements are highlighted in specific asset accounts (restricted securities) on the transaction date, at the updated average book value, by type and maturity of the security. The difference between the repurchase and sale amounts represents the transaction expense.

The Bank also uses third-party guarantees to raise funds in sales operations with a repurchase agreement, such funding is recorded as a financed position.

Purchase with Resale Commitment

Financing granted based on fixed income securities (from third parties) are recorded in the bank position at the settlement value. The difference between the resale and purchase values ​​represents the transaction income. Securities acquired with resale commitment are transferred to the financed position when used to back sales transactions with repurchase commitment.

Repurchase Transactions carried out with Free Movement Agreement

For operations with a free movement clause, at the time of the definitive sale of the securities acquired with a resale commitment, the liability related to the obligation to return the security must be evaluated at the security's market value.

f) Bonds and Securities

The securities portfolio is demonstrated, in accordance with Circular No. 3,068, by the following accounting registration and evaluation criteria:

I - trading securities;

II - securities available for sale; and

III - securities held to maturity.

Securities for trading include securities acquired for the purpose of being actively and frequently traded and in the category held-to-maturity securities, those for which there is the Bank's intention and financial capacity to keep them in the portfolio until the Due date. The securities available for sale category includes securities that do not fit into categories I and III. Securities classified in categories I and II are stated at acquisition cost plus income earned up to the balance sheet date, calculated on a daily pro rata basis, adjusted to market value (fair value), computing the appreciation or depreciation arising from such adjustment in return:

(1) the adequate income or expense account, net of tax effects, in the income statement for the period, when related to securities classified in the trading securities category; and

(2) the separate account of shareholders' equity, net of tax effects, when related to securities classified in the category of securities available for sale. Adjustments to market value (fair value) made on the sale of these securities are transferred to profit or loss for the period.

Marketable securities classified in the held-to-maturity category are stated at acquisition cost plus income earned through the balance sheet date, calculated on a daily pro rata basis.

Permanent losses in the realization value of marketable securities classified in the available-for-sale securities and held-to-maturity securities categories are recognized in income for the period.

g) Derivative Financial Instruments

Pursuant to Central Bank Circular No. 3,082, derivative financial instruments are classified according to Management's intention to use them as a hedge instrument or not. Transactions carried out at the request of customers, on their own, or that do not meet the accounting hedge criteria, mainly derivatives used in the management of global risk exposure, are accounted for at market value, with realized and unrealized gains and losses, recognized in the income for the period.

Derivative financial instruments designated as part of a risk protection structure (hedge) can be classified as:

I - market risk hedge; and

II - cash flow hedge.

Derivative financial instruments intended for hedging and the respective hedge objects are adjusted to market value, observing the following:

(1) for those classified in category I, the appreciation or depreciation is recorded against the appropriate income or expense account, net of tax effects, in the income statement for the period; and

(2) for those classified in category II, the valuation or devaluation of the effective portion is recorded against to a separate shareholders' equity account, net of tax effects.

Some hybrid financial instruments are composed of a derivative financial instrument and a non-derivative asset or liability. In these cases, the derivative financial instrument represents an embedded derivative. Embedded derivatives are recorded separately in relation to the contract to which they are linked.

We do not have net investment hedge transactions in foreign operations as defined in CMN Resolution No. 4,524.

h) Loan Portfolio and Provision for Expected Losses Associated with Credit Risk

The credit portfolio includes credit operations, leasing operations, advances on exchange contracts and other credits with credit granting characteristics. It is stated at its present value, considering the indices, interest rate and agreed charges, calculated on a daily pro rata basis until the balance sheet date. For operations overdue after 60 days, recognition in revenue will only occur when they are actually received.

Normally, the Bank writes-off credits for loss when they are overdue for more than 360 days. In the case of long-term credit operations (over 3 years) they are written off when they complete 540 days in arrears. The credit operation written off for loss is registered in a memorandum account for a minimum period of 5 years and until all collection procedures have been exhausted.

Credit assignments without risk retention result in the write-off of the financial assets that are the object of the transaction, which are now kept in a memorandum account. The result of the assignment is fully recognized upon its realization.

As of January 2012, as determined by CMN Resolution No. 3,533/2008 and CMN Resolution No. 3,895/2010, all credit assignments with substantial risk retention will have their results recognized for the remaining terms of the operations, and the financial assets objects of the assignment remain recorded as credit operations and the amount received as obligations for sale or transfer of financial assets.

Provisions for credit operations are based on the analysis of outstanding credit operations (overdue and falling due), on past experience, future expectations and specific risks of the portfolios and on the Management's risk assessment policy in the constitution of provisions, as established by the CMN Resolution No. 2682/1999.

CMN Resolution No. 4,855 of September 24, 2020, which entered into force on January 1, 2021, determines that, for the criteria for provision of operations carried out under the programs instituted for the purpose of facing the effects of the pandemic of COVID-19 in the economy, in which there is a sharing of resources or risks between the Federal Government and participating institutions or a guarantee provided by the Federal Government, the percentages defined in Resolution No. 2,682 shall be applied only on the portion of the accounting value of the operation, whose credit risk is held by the institution. In cases of transfer to loss, the amount taken to memorandum accounts must be 100% of the transaction balance.

h.1 Credit Operation Restructuring

CMN Resolution 4,803, later amended by CMN Resolution No. 4,855 mentioned above, allowed Financial Institutions to reclassify to the level at which they were classified on February 29, 2020, operations renegotiated between March 1 and December 31, 2020 (wording given by resolution 4,855), not including those operations with a delay of fifteen days or more on February 29, 2020 and that present evidence of inability to honor the obligation under the new agreed conditions.

i) Non-Current Assets Held for Sale and Other Values ​​and Assets

Non-current assets held for sale include the book value of individual items, disposal groups or items that are part of a business unit destined for disposal (discontinued operations), whose sale in their current condition is highly probable and whose occurrence is expected for within a year.

Other amounts and assets refer mainly to assets not for own use, basically consisting of real estate and vehicles received as payment.

Non-current assets held for sale and assets not for own use are generally recorded at the lower of fair value less cost to sell and book value on the date they are classified in this category and are not depreciated.

j) Prepaid Expenses

Investments of resources in prepayments are accounted for, whose benefits or services will occur in subsequent years and are allocated to income, in accordance with the term of the respective contracts.

j.1) Commissions Paid to Bank Correspondents

Considering what is contained in CMN Resolution No. 4,294 and Bacen Circular No. 3,693 of December 2013, as of January 2015, commissions paid to intermediary agents for the origination of new credit operations are limited to the maximum percentages of (i) 6% of the value of the new originated operation and (ii) 3% of the value of the operation subject to portability.

These fees must be fully recognized as an expense when incurred.

k) Investments

Investments in associated and controlled companies are initially recognized at their acquisition cost, and subsequently valued using the equity method and the results are recognized in the result of interest in affiliates and subsidiaries. Other investments are stated at cost, reduced to recoverable value, when applicable.

Change in the Scope of Consolidation – Consists of the sale, acquisition or change in control of a specific investment.

CMN Resolution No. 4,817/2020, which deals with criteria for accounting measurement and recognition of investments in associates, controlled companies and jointly controlled companies, the main change brought about is the extinction of the COSIF "Shares and quotas" of the investment group, passing these to be treated as Bonds and Securities, the resolution becomes effective in January 2022 and Banco Santander continues to assess impacts and necessary changes, with no expectation of material impacts from this change.

l) Fixed Assets

It is stated at acquisition cost, net of the respective accumulated depreciation and is subject to the assessment of the recoverable value in annual periods.

Fixed assets are depreciated using the straight-line method, based on the following annual rates: buildings - 4%, facilities, furniture, equipment for use and security and communications systems - 10%, data processing systems and vehicles - 20% and improvements in third-party properties - 10% or until the lease agreement expires.

m) Intangible

Goodwill on the acquisition of subsidiaries and affiliates is amortized within 10 years, subject to the expectation of future results and is subject to the assessment of the recoverable amount in annual periods or more frequently if the conditions or circumstances indicate the possibility of loss of its value.

The rights for the acquisition of payrolls are accounted for by the amounts paid in the acquisition of rights to provide services for the payment of salaries, earnings, salaries, salaries, retirement, pensions and similar, from public or private entities, and amortized in accordance with the duration of the respective contracts.

Software acquisition and development expenses are amortized over a maximum period of 5 years.

n) Technical Provisions Related to Pension and Capitalization Activities

Technical reserves are set up and calculated in accordance with the determinations and criteria established in the regulations of the National Council for Private Insurance (CNSP) and the Superintendence of Private Insurance (SUSEP).

Technical Pension Provisions

Technical provisions are mainly constituted in accordance with the criteria below:

• Mathematical Provisions of Benefits to Be Granted and Granted (PMBaC and PMBC)

PMBaC is constituted from contributions collected through the capitalization financial system. The PMBC represents the obligations assumed in the form of continuing income plans, being constituted through actuarial calculations for the plans of the traditional types.

• Supplementary Coverage Provision (PCC)

The PCC must be created when insufficiency in the technical provisions resulting from the performance of the Liability Adequacy Test (TAP) is observed.

Technical provisions for capitalization

Technical provisions are set up in accordance with the criteria below:

• Mathematical provision for redemption results from the accumulation of applicable percentages on payments made, capitalized with the interest rate provided for in the plan and updated using the Basic Reference Rate (TR);

• Provision for redemption of prepaid securities is constituted from the cancellation due to non-payment or request for redemption of the security, based on the value of the mathematical provision for redemption constituted at the time of cancellation of the security and the provision for redemption of overdue securities is constituted after the end of the term of the title;

• Provision for unrealized drawings is constituted based on a percentage of the installment paid and is intended to cover the drawings in which the titles will compete, but which have not yet been carried out. The provision for raffles payable is set up for the titles drawn, but which have not yet been paid; and

• Provision for administrative expenses is intended to reflect the present value of future expenses on capitalization bonds whose validity extends after their constitution date.

o) Employee Benefit Plan

The post-employment benefit plans comprise the commitments assumed by the Bank to: (i) complement the benefits of the public pension system; and (ii) medical assistance, in the event of retirement, permanent disability or death for those eligible employees and their direct beneficiaries.

Defined Contribution Plan

Defined contribution plan is the post-employment benefit plan whereby the Bank and its subsidiaries, as sponsoring entities, pay fixed contributions to a pension fund during the period of employment of the beneficiary employee, without any legal or constructive obligation to pay additional contributions if the fund does not have sufficient assets to meet all benefits relating to services rendered in the current and prior periods.

Contributions made in this regard are recognized as personnel expenses in the income statement.

Defined Benefit Plans

Defined benefit plan is a post-employment benefit plan that is not a defined contribution plan and are presented in Note 31. For this type of plan, the obligation of the sponsoring entity is to provide the benefits agreed with the employees, assuming the potential actuarial risk that benefits will cost more than estimated.

Since January 2013, Banco Santander has applied the Technical Pronouncement of the Accounting Pronouncements Committee (CPC) 33 (R1), which establishes full recognition in a liability account when unrecognized actuarial losses (actuarial deficit) occur, in equity to the account from equity (other equity valuation adjustments).

Main Definitions

- The present value of a defined benefit obligation is the present value, without deducting any plan assets, from the expected future payments required to settle the obligation resulting from employee service in the current and past periods.

- Deficit or surplus is: (a) the present value of the defined benefit obligation; minus (b) the fair value of plan assets.

- The sponsoring entity may recognize plan assets in the balance sheet when they meet the following characteristics: (i) the fund's assets are sufficient to meet all employee benefit obligations of the plan or sponsoring entity; or (ii) the assets are returned to the sponsoring entity for the purpose of reimbursing it for benefits already paid to employees.

- Actuarial gains and losses are changes in the present value of the defined benefit obligation resulting from: (a) adjustments for experience (effects of differences between the adopted actuarial assumptions and what actually occurred); and (b) effects of changes in actuarial assumptions.

- Current service cost is the increase in the present value of the defined benefit obligation resulting from the service provided by the employee in the current period.

- Past service cost is the change in the present value of the defined benefit obligation for service provided by employees in prior periods, resulting from a change in the plan or a reduction in the number of covered employees.

Post-employment benefits are recognized in income under other operating expenses - actuarial losses - retirement plans (Note 29) and personnel expenses (Note 24).

Defined benefit plans are recorded based on an actuarial study, carried out annually by an external specialized consulting entity and approved by Management, at the end of each year and effective for the subsequent period.

p) Share-Based Compensation

The Bank has long-term compensation plans with conditions for acquisition. The main conditions for acquisition are: (1) conditions of service, as long as the participant remains employed during the term; (2) performance conditions, the number of shares to be delivered to each participant will be determined according to the result of the measurement of a performance parameter of the Bank: comparison of the Total Shareholder Return (RTA) of the Santander Conglomerate with the RTA of the main global competitors of the Group and (3) market conditions, as some parameters are conditioned to the market value of the Bank's shares. The Bank measures the fair value of the services provided by reference to the fair value of the equity instruments granted on the grant date, considering the market conditions for each plan when estimating the fair value.

Settlement in Shares

The Bank measures the fair value of the services provided by reference to the fair value of the equity instruments granted on the grant date, considering the market conditions for each plan when estimating the fair value. In order to recognize personnel expenses against capital reserves over the term, as services are received, the Bank considers the treatment of service conditions and recognizes the amount for services received during the period of term, based on the best assessment of the estimate for the number of equity instruments expected to be granted.

Cash Settlement

For cash-settled share-based payments (in the form of share appreciation), the Bank measures the services provided and the corresponding liability incurred at fair value. This procedure consists of capturing the appreciation of the shares between the grant and settlement date. The Bank reassesses the fair value of the liability at the end of each reporting period, any changes in this amount are recognized in profit or loss for the period. In order to recognize personnel expenses against the provisions in "salaries payable" throughout the term, reflecting how services are received, the Bank records the total liability that represents the best estimate of the amount of valuation right of the shares that will be acquired at the end of the effective period and recognizes the value of services received during the effective period, based on the best available estimate. Periodically, the Bank reviews its estimate of the number of share appreciation rights that will be acquired at the end of the vesting period.

Variable Compensation Referenced to Shares

In addition to the administrators, all employees in a position of risk takers receive at least 40% of their variable remuneration deferred in at least three years and 50% of the total variable remuneration in shares (SANB11), subject to the participant's permanence in the Group throughout the term of the plan.

The plan is subject to the application of Malus and Clawback clauses, according to which deferred portions of variable compensation can be reduced, canceled or returned in cases of non-compliance with internal rules and exposure to excessive risks.

The fair value of the shares is calculated based on the average of the final daily quotation of the shares in the 15 (fifteen) last trading sessions immediately prior to the first business day of the grant month.

q) Funding, Issues and Other Liabilities

Fundraising instruments are initially recognized at their fair value, basically considered as the transaction price. They are subsequently measured at amortized cost (expenses) with the inherent expenses recognized as a financial cost (Note 17).

Among the criteria for initial recognition of liabilities, mention should be made of those instruments of a compound nature, which are classified as such, given the existence of a debt instrument (liabilities) and an embedded equity component (derivatives).

The registration of a compound instrument consists of the combination of (i) a principal instrument, which is recognized as a genuine liability of the entity (debt) and (ii) an equity component (convertibility derivative into common shares).

Pursuant to COSIF, hybrid capital and debt instruments represent obligations of issuing financial institutions and must be recorded in specific liability accounts and updated according to agreed rates and adjusted for the effect of exchange variation, when denominated in currency foreign. All remuneration referring to these instruments, such as interest and exchange variation (difference between the functional currency and the currency in which the instrument was denominated) must be recorded as expenses for the period, on an accrual basis.

Regarding the equity component, it is recorded at the initial moment due to its fair value, if different from zero.

The details pertaining to the issuance of composite instruments are described in Note 17.

r) Provisions, Contingent Liabilities, Contingent Assets and Legal Obligations - Tax and Social Security

Banco Santander and its subsidiaries are parties to legal and administrative proceedings of a tax, labor and civil nature, arising from the normal course of their activities.

Provisions include legal obligations, legal and administrative proceedings related to tax and social security obligations, whose object of challenge is their legality or constitutionality, which, regardless of the assessment of the probability of loss, have their amounts fully recognized in the financial statements.

Provisions are reassessed at the end of each reporting period to reflect the current best estimate and may be fully or partially reversed, reduced or may also be supplemented, when there is a change in risk in relation to the outflows of resources and obligations relevant to the process, including the decay of legal deadlines, the unappealable decision of the processes, among others.

Judicial and administrative provisions are constituted when the risk of loss of the legal or administrative action is assessed as probable and the amounts involved are measurable with sufficient certainty, based on the nature, complexity, and history of the actions and on the opinion of internal legal advisors and external and best available information. For lawsuits whose risk of loss is possible, provisions are not set up and information is disclosed in the explanatory notes (Note 20.e) and for lawsuits whose risk of loss is remote, no disclosure is made.

Contingent assets are not recognized in the accounts, except when there are real guarantees or favorable court decisions, over which there are no further appeals, characterizing the gain as practically certain. Contingent assets with probable success, if any, are only disclosed in the financial statements.

In the case of final and unappealable decisions favorable to Banco Santander, the counterparty has the right, if specific legal requirements are met, to file a rescission action within a period determined by the legislation in force. Termination actions are considered new actions and will be assessed for contingent liability purposes if and when they are filed.

s) Social Integration Program (PIS) and Contribution to Social Security Financing (COFINS)

PIS (0.65%) and COFINS (4.00%) are calculated on the revenue of the activity or main object of the legal entity. Financial institutions are allowed to deduct funding expenses when determining the calculation basis. PIS and COFINS expenses are recorded in tax expenses. For non-financial companies the rates are 1.65% for PIS and 7.6% for COFINS.

t) Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL)

The IRPJ charge is calculated at the rate of 15%, plus a surcharge of 10%, applied on profit, after making the adjustments determined by tax legislation. CSLL is calculated at the rate of 15% for financial institutions and legal entities of private insurance and capitalization and 9% for other companies, levied on profit, after considering the adjustments determined by tax legislation. The CSLL rate, for banks of any kind, was raised from 15% to 20% effective as of March 1, 2020, pursuant to article 32 of Constitutional Amendment 103, published on November 13, 2019.

Deferred tax credits and liabilities are basically calculated on temporary differences between accounting and tax results, on tax losses, negative basis of social contribution and adjustments to market value of securities and derivative financial instruments. Deferred tax credits and liabilities are recognized at the rates applicable to the period in which the realization of the asset and/or the settlement of the liability is estimated.

In accordance with the provisions of current regulations, tax credits are recorded to the extent that their recovery is considered probable, based on the generation of future taxable income. The expected realization of tax credits, as shown in Note 10, is based on projections of future results and based on a technical study.

The CSLL rate for banks of any kind, financial institutions, private insurance companies and capitalization companies (financial sector companies) was increased by 5% for the base period between July 1, 2021 and 31 December 2021, pursuant to Law 14,183/2021 (result of the conversion into the Provisional Measure Law (MP) 1,034/2021).

u) Interest on Equity

Published on December 19, 2018, effective as of January 1, 2019, CMN Resolution No. 4,706 is prospectively applicable and determines procedures for the accounting record of capital remuneration. The Standard determines that Interest on Equity must be recognized from the moment they are declared or proposed and thus constitute an obligation present on the balance sheet date and, in compliance with this determination, this capital remuneration must be recorded in a specific account in Shareholders' Equity.

v) Reduction to the Recoverable Amount of Assets

Financial and non-financial assets are evaluated at the end of each period, in order to identify evidence of impairment of their book value. If there is any indication, the entity shall estimate the recoverable amount of the asset and such loss shall be recognized immediately in the income statement. The recoverable amount of an asset is defined as the greater of its fair value, net, of selling expenses and its value in use.

w) Payments and Advances based on Results

CMN Resolution No. 4,797 was revoked and replaced by CMN Resolution No. 4,820, which was amended by CMN Resolution No. 4,885, which became effective on December 23, 2020, and with them, it was determined that financial institutions and other institutions authorized to operate by the Central Bank of Brazil are prevented from:

(i) remunerate equity, including in the form of advance, above:

(a) the amount equivalent to 30% (thirty percent) of the adjusted net income pursuant to item I of art. 202 of Law No. 6,404, of December 15, 1976; and amount equivalent to the minimum distribution of profit established in the articles of association in the case of institutions constituted in the form of limited liability companies;

(b) the equivalent amount:

(1) the mandatory minimum dividend, established by art. 202 of Law No. 6,404, of 1976, including in the form of interest on equity, in the case of institutions incorporated in the form of a joint stock company; or

(2) the minimum distribution of profit established in the articles of association in the case of institutions constituted in the form of limited liability companies;

(ii) repurchase own shares (it will only be allowed if through stock exchanges or organized over-the-counter market, up to a limit of 5% (five percent) of the shares issued, including the shares accounted for in treasury at the entry into force of this Resolution);

(iii) reduce the share capital, except in cases where it is mandatory, pursuant to the governing legislation or when approved by the Central Bank;

(iv) increase any remuneration, fixed or variable, of directors and members of the board of directors, in the case of corporations, and of administrators, in the case of limited liability companies;

Any anticipation of the amounts mentioned in items “a” and “b” of item I must be carried out in a conservative, consistent and compatible manner with the uncertainties of the current economic situation.

The amounts subject to the aforementioned prohibitions cannot be subject to future disbursement obligations, and these prohibitions apply from the date of publication of CMN Resolution No. 4,797 (on April 6, 2020) and December 31, 2020 and must be observed regardless of the maintenance of resources in an amount greater than the Additional Principal Capital (ACP), referred to in CMN Resolutions No. 4,193, of March 1, 2013, and 4,783, of March 16, 2020.

x) Results of Future Years

Refers to the income received before the fulfillment of the obligation period to which they originated, including non-refundable income, mainly related to guarantees and sureties provided and credit card annuities. The appropriation to the result is made in accordance with the term of the respective contracts.

y) Minority Shareholder Participation

The participation of non-controlling (minority) shareholders is recorded in a separate equity account of the controlling entity in the consolidated financial statements.

z) Financial Guarantees Provided

CMN Resolution No. 4,512 of July 28, 2016 and Bacen Circular Letter No. 3,782 of September 19, 2016 established accounting procedures to be applied, determining the constitution of a provision to cover losses associated with financial guarantees provided under any prospectively as of January 1, 2017. Losses associated with the probability of future disbursements linked to financial guarantees provided are evaluated in accordance with recognized credit risk management models and practices and based on consistent, reasonable information and criteria of verification. The provision must be sufficient to cover probable losses throughout the term of the guarantee provided and are periodically evaluated.

aa) Recurring/Non-recurring Results

BCB Resolution No. 2, of November 27, 2020, in its article 34, started to determine the segregation of recurring and non-recurring results. Therefore, a non-current result of the exercise is defined as that which: I - is not related or is incidentally related to the institution's typical activities; and II - is not expected to occur frequently in future fiscal years.

The nature and financial effect of events considered non-recurring are shown in Note 32.h.

ab) Non-financial assets held for sale

As of January 1, 2021, CMN Resolutions no. 4,747 and 4,748 of August 2019 and BACEN Circular Letter No. 3,994, which establish criteria for recognition and measurement of non-financial assets held for sale by Financial Institutions.

CMN Resolution No. 4,747, among other requirements, establishes that depending on the origin of non-financial assets held for sale, financial institutions must classify them as:

a) own;

b) received in the settlement of a difficult or doubtful financial instrument as a form of payment of doubtful financial instruments not intended for its own use.

CMN Resolution No. 4,748, establishes that financial institutions and other institutions authorized to operate by the Central Bank of Brazil must comply with Technical Pronouncement CPC 46 - Fair Value Measurement (CPC46) in the measurement of equity and income elements, in situations in which the measurement at fair value of such elements is provided for in specific regulations.

ac) Current and Deferred Tax Assets and Liabilities

CMN Resolution No. 4,842, of July 30, 2020 consolidated the general criteria for measurement and recognition of current and deferred tax assets and liabilities by financial institutions and other institutions authorized to operate by the Central Bank of Brazil and BCB Resolution No. 15 , of September 17, 2020 (revoked BACEN Circulars No. 3.776/15 and No. 3.174/03), consolidated the procedures to be observed by institutions authorized to operate by the Central Bank of Brazil in the constitution or write-off of deferred tax assets and in the disclosure information on deferred tax assets or liabilities in the explanatory notes.

ad) Subsequent Events

Corresponds to the event that occurred between the base date of the financial statements and the date on which the issuance of these statements was authorized and comprises:

• Events that give rise to adjustments: are those that evidence conditions that already existed on the base date of the financial statements; and

• Events that do not give rise to adjustments: are those that show conditions that did not exist on the base date of the financial statements.

ae) Rate Conversion

CMN Resolution No. 4,924, effective from January 2022, consolidates and provides for general principles for recognition, measurement, bookkeeping and accounting disclosure, of the content of the resolution, the main changes brought regarding approval of CPC 47 and the possibility of using an alternative rate to the spot exchange rate for converting transactions and statements in foreign currency into national currency. Banco Santander has already started the impact assessments and changes necessary to meet its implementation and there is no expectation of material impacts.

af) Chart of Accounts (Cosif)

Resolution BCB No. 92/2021, effective from January 2022, provides for the structure of the list of Cosif accounts to be observed by financial institutions and other institutions authorized to operate by the Central Bank of Brazil. Among the proposed changes, the main highlight is the extinction of Group 5 – Income from Future Years, with all its amounts being consequently transferred to the Other Liabilities line.

# 4. Cash and Cash Equivalents

|  |  |  |  |  |  | Bank
|  | 12/31/2021 |  | 12/31/2020 |  |  | 12/31/2019
Cash |  | 16,361,758 |  | 19,522,250 |  |  | 9,543,649
Interbank Investments |  | 17,935,878 |  | 9,668,922 |  |  | 11,877,783
Money Market Investments |  | 15,055,356 |  | 7,348,568 |  |  | 110,746
Interbank Deposits |  | 1,655,705 |  | 1,131,436 |  |  | 1,465,065
Foreign Currency Investments |  | 1,224,817 |  | 1,188,917 |  |  | 10,301,972
Total |  | 34,297,636 |  | 29,191,171 |  |  | 21,421,432
|  |  |  |  |  |  | Consolidated
|  | 12/31/2021 |  | 12/31/2020 |  |  | 12/31/2019
Cash |  | 16,386,974 |  | 19,512,315 |  |  | 9,924,644
Interbank Investments |  | 17,263,365 |  | 9,487,000 |  |  | 11,519,019
Money Market Investments |  | 15,055,356 |  | 7,306,408 |  |  | 110,746
Interbank Deposits |  | 983,192 |  | 991,675 |  |  | 1,105,446
Foreign Currency Investments |  | 1,224,817 |  | 1,188,917 |  |  | 10,302,827
Total |  | 33,650,339 |  | 28,999,315 |  |  | 21,443,663

The information related to December 31, 2019, is shown to inform the composition of the opening balances of Cash and Cash Equivalents presented in the Statement of Cash Flows.

# 5. Interbank Investments

|  |  |  |  |  |  |  |  |  | Bank
|  |  |  |  |  |  |  | 12/31/2021 |  | 12/31/2020
|  | Up to 3 Months | From 3 to 12 Months |  | Over 12 Months |  | Total |  | Total
Money Market Investments |  | 25,883,579 |  | - |  | - |  | 25,883,579 |  | 62,644,146
Own Portfolio |  | 7,066,196 |  | - |  | - |  | 7,066,196 |  | 12,833,464
Financial Treasury Bills - LFT |  | 706,245 |  | - |  | - |  | 706,245 |  | 2,869,850
National Treasury Bills - LTN |  | 1,556,526 |  | - |  | - |  | 1,556,526 |  | 2,218,460
National Treasury Notes - NTN |  | 4,803,425 |  | - |  | - |  | 4,803,425 |  | 7,745,154
Third-party Portfolio |  | 6,638,709 |  | - |  | - |  | 6,638,709 |  | 6,203,774
National Treasury Bills - LTN |  | 500,173 |  | - |  | - |  | 500,173 |  | -
National Treasury Notes - NTN |  | 4,644,361 |  | - |  | - |  | 4,644,361 |  | -
Financial Treasury Bills - LFT |  | 1,494,175 |  | - |  | - |  | 1,494,175 |  | 6,203,774
Sold Position |  | 12,178,674 |  | - |  | - |  | 12,178,674 |  | 43,606,908
National Treasury Bills - LTN |  | 2,772,317 |  | - |  | - |  | 2,772,317 |  | 1,498,684
National Treasury Notes - NTN |  | 8,792,071 |  | - |  | - |  | 8,792,071 |  | 8,469,234
Financial Treasury Bills - LFT |  | 614,286 |  | - |  | - |  | 614,286 |  | 33,638,990
Interbank Deposits |  | 21,976,541 |  | 36,715,576 |  | 33,260,243 |  | 91,952,361 |  | 80,071,025
Foreign Currency Investments |  | 1,224,817 |  | - |  | - |  | 1,224,817 |  | 1,188,917
Total |  | 49,084,937 |  | 36,715,576 |  | 33,260,243 |  | 119,060,757 |  | 143,904,088
|  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  |  |  | 12/31/2021 |  | 12/31/2020
|  | Up to 3 Months | From 3 to 12 Months |  | Over 12 Months |  | Total |  | Total
Money Market Investments |  | 25,912,368 |  | - |  | - |  | 25,912,368 |  | 62,601,986
Own Portfolio |  | 7,094,986 |  | - |  | - |  | 7,094,986 |  | 12,833,464
Financial Treasury Bills - LFT |  | 706,245 |  | - |  | - |  | 706,245 |  | 2,869,850
National Treasury Bills - LTN |  | 1,585,316 |  | - |  | - |  | 1,585,316 |  | 2,218,460
National Treasury Notes - NTN |  | 4,803,425 |  | - |  | - |  | 4,803,425 |  | 7,745,154
Third-party Portfolio |  | 6,638,709 |  | - |  | - |  | 6,638,709 |  | 6,203,774
National Treasury Bills - LTN |  | 500,173 |  | - |  | - |  | 500,173 |  | -
National Treasury Notes - NTN |  | 4,644,361 |  | - |  | - |  | 4,644,361 |  | -
Financial Treasury Bills - LFT |  | 1,494,175 |  | - |  | - |  | 1,494,175 |  | 6,203,774
Sold Position |  | 12,178,673 |  | - |  | - |  | 12,178,673 |  | 43,564,748
National Treasury Bills - LTN |  | 2,772,317 |  | - |  | - |  | 2,772,317 |  | 1,456,524
National Treasury Notes - NTN |  | 8,792,071 |  | - |  | - |  | 8,792,071 |  | 8,469,234
Financial Treasury Bills - LFT |  | 614,285 |  |  |  |  |  | 614,285 |  | 33,638,990
Interbank Deposits |  | 1,534,767 |  | 2,717,018 |  | 2,240,348 |  | 6,492,133 |  | 5,907,350
Foreign Currency Investments |  | 1,224,817 |  | - |  | - |  | 1,224,817 |  | 1,188,917
Total |  | 28,671,952 |  | 2,717,018 |  | 2,240,348 |  | 33,629,318 |  | 69,698,253

# 6. Securities and Derivatives Financial Instruments

a) Securities

I) By Category

|  |  |  |  |  |  |  |  |  | Bank |  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  |  |  | 12/31/2021 |  | 12/31/2020 |  |  |  |  |  |  |  | 12/31/2021 |  | 12/31/2020
|  |  |  | Effect of Adjustment to Fair Value on: |  |  |  |  |  |  |  | Effect of Adjustment to Fair Value on: |  |  |  |
|  | Amortized Cost |  | Income |  | Equity |  | Carrying Amount |  | Carrying Amount |  | Amortized Cost |  | Income |  | Equity |  | Carrying Amount |  | Carrying Amount
Trading Securities |  | 43,414,251 |  | (383,997) |  | - |  | 43,030,702 |  | 65,380,859 |  | 54,913,329 |  | (363,564) |  | - |  | 54,550,213 |  | 75,006,276
Government Securities |  | 42,292,742 |  | (377,786) |  |  |  | 41,914,956 |  | 64,621,598 |  | 51,726,162 |  | (365,634) |  | - |  | 51,360,528 |  | 72,038,263
Private Securities |  | 1,121,509 |  | (6,211) |  | - |  | 1,115,746 |  | 759,261 |  | 3,187,167 |  | 2,070 |  | - |  | 3,189,685 |  | 2,968,013
Available-for-Sale Securities |  | 153,156,024 |  | (2,109,540) |  | (1,169,141) |  | 149,877,343 |  | 134,119,306 |  | 161,810,792 |  | (2,109,540) |  | (1,824,613) |  | 157,876,639 |  | 141,924,157
Government Securities |  | 117,365,859 |  | (2,121,348) |  | (1,734,371) |  | 113,510,140 |  | 102,157,294 |  | 126,821,981 |  | (2,121,348) |  | (2,393,949) |  | 122,306,684 |  | 110,263,140
Private Securities |  | 35,790,165 |  | 11,808 |  | 565,230 |  | 36,367,203 |  | 31,962,012 |  | 34,988,811 |  | 11,808 |  | 569,336 |  | 35,569,955 |  | 31,661,018
Held-to-Maturity Securities |  | 15,279,130 |  | - |  | - |  | 15,279,130 |  | 16,317,905 |  | 15,279,130 |  | - |  | - |  | 15,279,130 |  | 16,317,905
Government Securities |  | 13,871,974 |  | - |  | - |  | 13,871,974 |  | 14,739,539 |  | 13,871,974 |  | - |  | - |  | 13,871,974 |  | 14,739,539
Private Securities |  | 1,407,156 |  | - |  | - |  | 1,407,156 |  | 1,578,365 |  | 1,407,156 |  | - |  | - |  | 1,407,156 |  | 1,578,365
Total Securities |  | 211,849,405 |  | (2,493,537) |  | (1,168,693) |  | 208,187,175 |  | 215,818,070 |  | 232,003,251 |  | (2,473,104) |  | (1,824,165) |  | 227,705,982 |  | 233,248,338

II) Trading Securities

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Bank
|  |  |  |  |  | 12/31/2021 |  | 12/31/2020 |  | By Maturity |  |  |  |  |  |  |  |  |  | 12/31/2021
Trading Securities |  | Amortized Cost |  | Adjustment to Fair Value - Income |  | Carrying Amount |  | Carrying Amount |  | Without Maturity |  | Up to 3 Months |  | From 3 to 12 Months |  | From 1 to 3 Years |  | Over 3 Years |  | Total
Government Securities |  | 42,292,742 |  | (377,786) |  | 41,914,956 |  | 64,621,598 |  | - |  | 3,858,251 |  | 5,009,757 |  | 15,011,389 |  | 18,035,559 |  | 41,914,956
Financial Treasury Bills - LFT |  | 3,340,883 |  | 907 |  | 3,341,790 |  | 2,208,130 |  | - |  | 1,372,558 |  | 115,692 |  | 424,267 |  | 1,429,273 |  | 3,341,790
National Treasury Bills - LTN |  | 12,543,271 |  | (11,873) |  | 12,531,398 |  | 23,439,521 |  | - |  | 904,876 |  | 1,816,497 |  | 9,040,004 |  | 770,021 |  | 12,531,398
National Treasury Notes - NTN |  | 24,705,810 |  | (365,690) |  | 24,340,120 |  | 38,186,441 |  | - |  | 351,883 |  | 2,625,442 |  | 5,533,584 |  | 15,829,211 |  | 24,340,120
Agricultural Debt Securities - TDA |  | 23,999 |  | (27) |  | 23,972 |  | 44,820 |  | - |  | 1,560 |  | 6,054 |  | 13,531 |  | 2,827 |  | 23,972
Brazilian Foreign Debt Notes |  | 1,674,879 |  | (1,094) |  | 1,673,785 |  | 678,533 |  | - |  | 1,227,323 |  | 446,072 |  | 3 |  | 387 |  | 1,673,785
Debentures |  | 3,900 |  | (9) |  | 3,891 |  | 64,153 |  | - |  | 51 |  | - |  | - |  | 3,840 |  | 3,891
Private Securities |  | 1,121,509 |  | (6,211) |  | 1,115,746 |  | 759,261 |  | 414,023 |  | 8,101 |  | 5,171 |  | 162,456 |  | 525,995 |  | 1,115,746
Shares |  | 13,245 |  | (1) |  | 13,692 |  | - |  | 13,692 |  | - |  | - |  | - |  | - |  | 13,692
Investment Fund Shares |  | 405,193 |  | (4,862) |  | 400,331 |  | 369,041 |  | 400,331 |  | - |  | - |  | - |  | - |  | 400,331
Debentures |  | 633,115 |  | (497) |  | 632,618 |  | 273,671 |  | - |  | 7,678 |  | 3,687 |  | 162,304 |  | 458,949 |  | 632,618
Certificates of Real Estate Receivables - CRI |  | 58,273 |  | (670) |  | 57,603 |  | 23,008 |  | - |  | 5 |  | 581 |  | 32 |  | 56,985 |  | 57,603
Certificates of Agribusiness Receivables - CRA |  | 11,683 |  | (181) |  | 11,502 |  | 23,866 |  | - |  | 418 |  | 903 |  | 120 |  | 10,061 |  | 11,502
Financial Bills - LF |  | - |  | - |  | - |  | 69,675 |  | - |  | 0 |  | - |  | - |  | - |  | -
Total |  | 43,414,251 |  | (383,997) |  | 43,030,702 |  | 65,380,859 |  | 414,023 |  | 3,866,352 |  | 5,014,928 |  | 15,173,845 |  | 18,561,554 |  | 43,030,702

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  | 12/31/2021 |  | 12/31/2020 |  | By Maturity |  |  |  |  |  |  |  |  |  | 12/31/2021
Trading Securities |  | Amortized Cost |  | Adjustment to Fair Value - Income |  | Carrying Amount |  | Carrying Amount |  | Without Maturity |  | Up to 3 Months |  | From 3 to 12 Months |  | From 1 to 3 Years |  | Over 3 Years |  | Total
Government Securities |  | 51,726,162 |  | (365,634) |  | 51,360,528 |  | 72,038,263 |  | - |  | 3,858,251 |  | 8,875,046 |  | 17,968,977 |  | 20,658,254 |  | 51,360,528
Financial Treasury Bills - LFT |  | 10,549,789 |  | 16,911 |  | 10,566,700 |  | 7,316,112 |  | - |  | 1,372,558 |  | 3,980,981 |  | 3,381,855 |  | 1,831,306 |  | 10,566,700
National Treasury Bills - LTN |  | 12,543,271 |  | (11,873) |  | 12,531,398 |  | 23,450,858 |  | - |  | 904,876 |  | 1,816,497 |  | 9,040,004 |  | 770,021 |  | 12,531,398
National Treasury Notes - NTN |  | 26,930,325 |  | (369,543) |  | 26,560,782 |  | 40,483,786 |  | - |  | 351,883 |  | 2,625,442 |  | 5,533,584 |  | 18,049,873 |  | 26,560,782
Agricultural Debt Securities - TDA |  | 23,999 |  | (27) |  | 23,972 |  | 44,820 |  | - |  | 1,560 |  | 6,054 |  | 13,531 |  | 2,827 |  | 23,972
Brazilian Foreign Debt Bonds |  | 1,674,879 |  | (1,094) |  | 1,673,785 |  | 678,533 |  | - |  | 1,227,323 |  | 446,072 |  | 3 |  | 387 |  | 1,673,785
Debentures |  | 3,899 |  | (8) |  | 3,891 |  | 64,153 |  | - |  | 51 |  | - |  | - |  | 3,840 |  | 3,891
Private Securities |  | 3,187,167 |  | 2,070 |  | 3,189,685 |  | 2,968,013 |  | 1,940,650 |  | 8,101 |  | 108,849 |  | 162,456 |  | 969,629 |  | 3,189,685
Shares |  | 1,493,848 |  | 8,280 |  | 1,502,576 |  | 1,339,892 |  | 1,502,576 |  | - |  | - |  | - |  | - |  | 1,502,576
Investment Fund Shares |  | 442,936 |  | (4,862) |  | 438,074 |  | 401,442 |  | 438,074 |  | - |  | - |  | - |  | - |  | 438,074
Debentures |  | 1,076,749 |  | (497) |  | 1,076,252 |  | 1,077,513 |  | - |  | 7,678 |  | 3,687 |  | 162,304 |  | 902,583 |  | 1,076,252
Certificates of Real Estate Receivables - CRI |  | 58,273 |  | (670) |  | 57,603 |  | 23,008 |  | - |  | 5 |  | 581 |  | 32 |  | 56,985 |  | 57,603
Certificates of Agribusiness Receivables - CRA |  | 11,683 |  | (181) |  | 11,502 |  | 23,866 |  | - |  | 418 |  | 903 |  | 120 |  | 10,061 |  | 11,502
Bill of Exchange |  | 103,678 |  | - |  | 103,678 |  | 32,618 |  | - |  | - |  | 103,678 |  | - |  | - |  | 103,678
Financial Bills - LF |  | - |  | - |  | - |  | 69,675 |  | - |  | - |  | - |  | - |  | - |  | -
Total |  | 54,913,329 |  | (363,564) |  | 54,550,213 |  | 75,006,276 |  | 1,940,650 |  | 3,866,352 |  | 8,983,895 |  | 18,131,433 |  | 21,627,883 |  | 54,550,213

*For the purposes of Financial Statements, Securities Held for Trading are fully presented in the Balance Sheet in the short term.

III) Available-for-Sale Securities

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Bank
|  |  |  |  |  |  |  | 12/31/2021 |  | 12/31/2020 |  | By Maturity |  |  |  |  |  |  |  |  |  | 12/31/2021
|  |  |  | Effect of Adjustment to Fair Value on: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-Sale Securities |  | Amortized Cost |  | Income |  | Equity |  | Carrying Amount |  | Carrying Amount |  | Without Maturity |  | Up to 3 Months |  | From 3 to 12 Months |  | From 1 to 3 Years |  | Over 3 Years |  | Total
Government Securities |  | 117,365,859 |  | (2,121,348) |  | (1,734,371) |  | 113,510,139 |  | 102,157,294 |  | - |  | 5,931,886 |  | 18,227,802 |  | 31,288,339 |  | 58,062,112 |  | 113,510,139
Treasury Certificates - CFT |  | 736 |  | - |  | 6 |  | 742 |  | 1,441 |  | - |  | 742 |  | - |  | - |  | - |  | 742
Securitized Credit |  | 11 |  | - |  | (11) |  | - |  | 460 |  | - |  | - |  | - |  | - |  | - |  | -
Financial Treasury Bills - LFT |  | 38,311,185 |  | - |  | 6,508 |  | 38,317,693 |  | 20,633,213 |  | - |  | - |  | 280,724 |  | 8,231,903 |  | 29,805,066 |  | 38,317,693
National Treasury Bills - LTN (3) |  | 17,861,970 |  | (348,381) |  | (980,761) |  | 16,532,828 |  | 34,350,939 |  | - |  | 3,348,836 |  | - |  | 13,183,992 |  | - |  | 16,532,828
National Treasury Notes - NTN (2)(3) |  | 40,585,421 |  | (1,772,967) |  | (364,221) |  | 38,448,233 |  | 45,885,764 |  | - |  | 1,410,504 |  | 11,348 |  | 9,872,444 |  | 27,153,937 |  | 38,448,233
Brazilian Foreign Debt Bonds |  | 2,274,913 |  | - |  | - |  | 2,274,913 |  | 1,285,477 |  | - |  | 1,171,804 |  | - |  | - |  | 1,103,109 |  | 2,274,913
Spanish Foreign Debt Bonds |  | 16,061,004 |  | - |  | (454,285) |  | 15,606,719 |  | - |  | - |  | - |  | 15,606,719 |  | - |  | - |  | 15,606,719
Mexican Foreign Debt Bonds |  | 2,270,619 |  | - |  | 58,393 |  | 2,329,011 |  | - |  | - |  | - |  | 2,329,011 |  | - |  | - |  | 2,329,011
Private Securities |  | 35,790,165 |  | 11,808 |  | 565,230 |  | 36,367,203 |  | 31,962,012 |  | 1,888,172 |  | 1,572,626 |  | 7,599,020 |  | 9,976,491 |  | 15,330,894 |  | 36,367,203
Shares |  | 320 |  | - |  | (271) |  | 49 |  | 53 |  | 49 |  | - |  | - |  | - |  | - |  | 49
Investment Funds |  | 1,637,742 |  | - |  | - |  | 1,637,742 |  | 1,894,532 |  | 1,637,742 |  | - |  | - |  | - |  | - |  | 1,637,742
Investment Fund Real Estate |  | 169,064 |  | - |  | - |  | 169,064 |  | 200,691 |  | 169,064 |  | - |  | - |  | - |  | - |  | 169,064
Debentures (1) |  | 18,467,913 |  | 11,808 |  | 826,928 |  | 19,306,649 |  | 14,968,154 |  | - |  | 468,310 |  | 2,034,182 |  | 6,351,645 |  | 10,452,512 |  | 19,306,649
Promissory Notes - NP |  | 1,666,251 |  | - |  | 8,432 |  | 1,674,683 |  | 4,525,164 |  | - |  | 31,763 |  | 803,317 |  | 839,603 |  | - |  | 1,674,683
Financial Bills - LF |  | 279,240 |  | - |  | (5,335) |  | 273,905 |  | 270,298 |  | - |  | 110,948 |  | 162,957 |  | - |  | - |  | 273,905
Certificates of Real Estate Receivables - CRI |  | 2,805 |  | - |  | (21) |  | 2,784 |  | 23,625 |  | - |  | - |  | - |  | - |  | 2,784 |  | 2,784
Certificates of Agribusiness Receivables - CRA |  | 126,667 |  | - |  | 24,847 |  | 151,514 |  | 171,916 |  | - |  | - |  | - |  | 126,768 |  | 24,746 |  | 151,514
Eurobonds |  | 3,407,775 |  | - |  | 145,382 |  | 3,553,157 |  | 3,305,028 |  | - |  | - |  | - |  | - |  | 3,553,157 |  | 3,553,157
Rural Product Note - CPR |  | 10,032,388 |  | - |  | (434,732) |  | 9,597,656 |  | 6,601,651 |  | 81,317 |  | 961,605 |  | 4,598,564 |  | 2,658,475 |  | 1,297,695 |  | 9,597,656
Total |  | 153,156,024 |  | (2,109,540) |  | (1,169,141) |  | 149,877,342 |  | 134,119,306 |  | 1,888,172 |  | 7,504,512 |  | 25,826,822 |  | 41,264,830 |  | 73,393,006 |  | 149,877,342

*Mark-to-Market directed to Results for the securities in question is linked to the Market Risk Hedge strategy of fixed interest rate risk, see note 6.b) IV. Therefore, the effect on income is offset against future DI instruments used to hedge the fair value of this portfolio.

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  |  |  | 12/31/2021 |  | 12/31/2020 |  | By Maturity |  |  |  |  |  |  |  |  |  | 12/31/2021
|  |  |  | Effect of Adjustment to Fair Value on: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-Sale Securities |  | Amortized Cost |  | Income |  | Equity |  | Carrying Amount |  | Carrying Amount |  | Without Maturity |  | Up to 3 Months |  | From 3 to 12 Months |  | From 1 to 3 Years |  | Over 3 Years |  | Total
Government Securities |  | 126,821,981 |  | (2,121,348) |  | (2,393,949) |  | 122,306,684 |  | 110,263,140 |  | - |  | 5,970,073 |  | 21,777,506 |  | 33,167,136 |  | 61,391,969 |  | 122,306,684
Treasury Certificates - CFT |  | 736 |  | - |  | 6 |  | 742 |  | 1,441 |  | - |  | 742 |  | - |  | - |  | - |  | 742
Securitized Credit |  | 11 |  | - |  | (11) |  | - |  | 460 |  | - |  | - |  | - |  | - |  | - |  | -
Financial Treasury Bills - LFT |  | 41,032,265 |  | - |  | 3,990 |  | 41,036,255 |  | 22,684,405 |  | - |  | 38,187 |  | 2,239,664 |  | 8,592,766 |  | 30,165,638 |  | 41,036,255
National Treasury Bills - LTN |  | 20,821,946 |  | (348,381) |  | (1,089,117) |  | 19,384,448 |  | 36,423,327 |  | - |  | 3,348,836 |  | 1,590,765 |  | 14,444,847 |  | - |  | 19,384,448
National Treasury Notes – NTN (2) |  | 44,360,487 |  | (1,772,967) |  | (912,924) |  | 41,674,596 |  | 49,868,030 |  | - |  | 1,410,504 |  | 11,348 |  | 10,129,522 |  | 30,123,222 |  | 41,674,596
Brazilian Foreign Debt Bonds |  | 2,274,913 |  | - |  | - |  | 2,274,913 |  | 1,285,477 |  | - |  | 1,171,804 |  | - |  | - |  | 1,103,109 |  | 2,274,913
Spanish Foreign Debt Bonds |  | 16,061,004 |  | - |  | (454,285) |  | 15,606,719 |  | - |  | - |  | - |  | 15,606,718 |  | 1 |  | - |  | 15,606,719
Mexican Foreign Debt Bonds |  | 2,270,619 |  | - |  | 58,392 |  | 2,329,011 |  | - |  | - |  | - |  | 2,329,011 |  | - |  | - |  | 2,329,011
Private Securities |  | 34,988,811 |  | 11,808 |  | 569,336 |  | 35,569,955 |  | 31,661,018 |  | 1,420,881 |  | 1,572,626 |  | 7,599,022 |  | 9,976,489 |  | 15,000,937 |  | 35,569,955
Shares |  | 322 |  | - |  | (271) |  | 51 |  | 5,400 |  | 51 |  | - |  | - |  | - |  | - |  | 51
Investment Fund Shares |  | 1,306,605 |  | - |  | - |  | 1,306,605 |  | 1,784,375 |  | 1,306,605 |  | - |  | - |  | - |  | - |  | 1,306,605
Investment Fund Real Estate |  | 33,306 |  | - |  | (1,922) |  | 31,384 |  | 39,006 |  | 31,384 |  | - |  | - |  | - |  | - |  | 31,384
Debentures (1) |  | 18,131,929 |  | 11,808 |  | 832,956 |  | 18,976,693 |  | 14,953,673 |  | - |  | 468,310 |  | 2,034,184 |  | 6,351,643 |  | 10,122,556 |  | 18,976,693
Eurobonds |  | 3,407,775 |  | - |  | 145,382 |  | 3,553,157 |  | 3,285,010 |  | - |  | - |  | - |  | - |  | 3,553,157 |  | 3,553,157
Promissory Notes - NP |  | 1,666,251 |  | - |  | 8,432 |  | 1,674,683 |  | 4,525,164 |  | - |  | 31,763 |  | 803,317 |  | 839,603 |  | - |  | 1,674,683
Financial Bills - LF |  | 279,240 |  | - |  | (5,335) |  | 273,905 |  | 270,298 |  | - |  | 110,948 |  | 162,957 |  | - |  | - |  | 273,905
Certificates of Real Estate Receivables - CRI |  | 2,805 |  | - |  | (21) |  | 2,784 |  | 23,625 |  | - |  | - |  | - |  | - |  | 2,784 |  | 2,784
Certificates of Agribusiness Receivables - CRA |  | 126,667 |  | - |  | 24,847 |  | 151,514 |  | 171,916 |  | - |  | - |  | - |  | 126,768 |  | 24,746 |  | 151,514
Bank Deposit Certificates - CDB |  | 1,524 |  | - |  | - |  | 1,524 |  | - |  | 1,524 |  | - |  | - |  | - |  | - |  | 1,524
Rural Product Note - CPR |  | 10,032,387 |  | - |  | (434,732) |  | 9,597,655 |  | 6,601,651 |  | 81,317 |  | 961,605 |  | 4,598,564 |  | 2,658,475 |  | 1,297,694 |  | 9,597,655
Total |  | 161,810,792 |  | (2,109,540) |  | (1,824,613) |  | 157,876,639 |  | 141,924,157 |  | 1,420,881 |  | 7,542,699 |  | 29,376,528 |  | 43,143,625 |  | 76,392,906 |  | 157,876,639

(1) In the Bank and in the Consolidated, includes securities issued by government-controlled companies and R$67,606 (12/31/2020 - R$287,736) in securities available for sale.

(2) On December 31, 2021, the amount of 913,500 in the amount of R$858,663 (12/31/2020 – 1,400,000 in the amount of R$1,668,832) of National Treasury Notes - NTN, are linked to the obligation assumed by the Banco Santander to cover the unamortized reserves of the Pension Plans with the entity BANESPREV.

IV) Held-to-Maturity Securities

|  |  |  |  |  |  |  |  |  |  |  |  |  | Bank/Consolidated
|  |  |  |  |  |  |  | By Maturity |  |  |  |  |  | 12/31/2021

|  | Amortized Cost |  | Up to 3 Months |  | From 3 to 12 Months |  | From 1 to 3 Years |  | Over 3 Years |  |
Held-to-Maturity Securities (1) |  | 12/31/2021 |  | 12/31/2020 |  |  |  |  |  | Total
Government Securities |  | 13,871,974 |  | 14,739,539 |  | - |  | 11,868 |  | 7,027,196 |  | 6,832,910 |  | 13,871,974
National Treasury Notes - NTN |  | 4,822,599 |  | 4,549,498 |  | - |  | 11,868 |  | 4,810,731 |  | - |  | 4,822,599
Brazilian Foreign Debt Bonds |  | 9,049,375 |  | 10,190,042 |  | - |  | - |  | 2,216,465 |  | 6,832,910 |  | 9,049,375
Private Securities |  | 1,407,156 |  | 1,578,365 |  | - |  | 718,745 |  | 688,411 |  | - |  | 1,407,156
Certificates of Agribusiness Receivables - CRA |  | 1,407,156 |  | 1,578,365 |  | - |  | 718,745 |  | 688,411 |  | - |  | 1,407,156
Total |  | 15,279,130 |  | 16,317,905 |  | - |  | 730,613 |  | 7,715,607 |  | 6,832,910 |  | 15,279,130

(1) The market value of held-to-maturity securities is R$14,993,443 (12/31/2020 - R$16,322,840).

For the period ended December 31, 2021, there were no sales of federal government bonds and other securities classified in the held-to-maturity securities category.

Pursuant to the provisions of article 5 of Circular Bacen 3,068/2001, Banco Santander has the financial capacity and intention to hold until maturity the securities classified in the category held-to-maturity securities.

The market value of bonds and securities is calculated considering the average price of organized markets and their estimated cash flow, discounted to present value according to the corresponding applicable interest curves, considered as representative of the market conditions at the time of the calculation of the balances.

V) Financial Income - Securities Transactions

|  | Bank |  | Consolidated
| 01/01 to 12/31/2021 | 01/01 to 12/31/2020 | 01/01 to 12/31/2021 | 01/01 to 12/31/2020
Income From Fixed-Income Securities (1) | 20,286,715 | 53,672,358 | 21,223,970 | 53,732,942
Income From Interbank Investments | 8,524,332 | 6,252,282 | 4,135,608 | 2,702,108
Income From Variable-Income Securities | (32,324) | (50,522) | 249,211 | 133,661
Financial Income of Pension and Capitalization | - | - | 235,376 | 192,122
Provision for Impairment Losses (2) | (163,842) | (165,360) | (159,275) | (165,360)
Others (3) | (242,308) | (2,448,782) | (264,896) | (2,360,519)
Total | 28,372,573 | 57,259,976 | 25,419,994 | 54,234,954

(1) Includes exchange variation expense in the amount of R$12,801,341 in the Bank and in the Consolidated (2020 - revenue of R$29,463,279 in the Bank and in the Consolidated).

(2) Corresponds to the record of permanent loss, referring to securities classified as available for sale.

(3) Includes income from exchange variation and net appreciation of investment fund shares and equity in the amount of R$264,895 in the Bank and in the Consolidated (2020 - exchange variation expense of R$2,707,556 and net appreciation of fund shares investments and participations in the amount of R$347,036 in the Bank and in the Consolidated).

b) Derivatives Financial Instruments

The main risk factors of the derivative instruments assumed are related to exchange rates, interest rates and variable income. In the management of this and other market risk factors, practices are used that include the measurement and monitoring of the use of limits previously defined in internal committees, the value at risk of the portfolios, the sensitivities to interest rate fluctuations, the exposure exchange rate, liquidity gaps, among other practices that allow for the control and monitoring of risks, which may affect Banco Santander's positions in the various markets where it operates. Based on this management model, the Bank has managed, through the use of operations involving derivative instruments, to optimize the risk-benefit ratio even in situations of great volatility.

The fair value of derivative financial instruments is determined through market price quotations. The fair value of swaps is determined using discounted cash flow modeling techniques, reflecting appropriate risk factors. The fair value of forward and futures contracts is also determined based on quoted market prices for derivatives traded on exchanges or using methodologies similar to those described for swaps. The fair value of options is determined based on mathematical models such as Black & Scholes, implied volatilities and the fair value of the corresponding asset. Current market prices are used to price volatilities. For derivatives that do not have prices directly published by exchanges, the fair price is obtained through pricing models that use market information, inferred from published prices of more liquid assets. From these prices, yield curves and market volatilities that serve as input data for the models are extracted.

I) Summary of Derivative Financial Instruments

Swap operations are presented by the balances of the differentials’ receivable and payable.

Below is a breakdown of the Derivative Financial Instruments portfolio (Assets and Liabilities) by type of instrument, shown by their market value:

|  |  |  |  |  |  |  | Bank |  |  |  |  |  |  |  | Consolidated
|  | 12/31/2021 |  | 12/31/2020 |  | 12/31/2021 |  | 12/31/2020
|  | Assets |  | Liabilities |  | Assets |  | Liabilities |  | Assets |  | Liabilities |  | Assets |  | Liabilities
Swap - Differential Receivable |  | 14,499,987 |  | 16,194,023 |  | 14,746,581 |  | 17,925,675 |  | 7,641,355 |  | 8,538,705 |  | 14,729,641 |  | 18,652,196
Options to Exercise Awards |  | 1,548,530 |  | 2,202,234 |  | 4,448,585 |  | 4,511,175 |  | 1,370,541 |  | 2,256,244 |  | 4,979,011 |  | 4,926,994
Term Contract and Other Contracts |  | 12,892,381 |  | 13,759,082 |  | 13,085,550 |  | 12,690,276 |  | 12,077,828 |  | 13,852,282 |  | 13,131,423 |  | 12,690,275
Total |  | 28,940,898 |  | 32,155,339 |  | 32,280,716 |  | 35,127,126 |  | 21,089,724 |  | 24,647,231 |  | 32,840,075 |  | 36,269,465

II) Derivatives Recorded in Memorandum Accounts and Balance Sheets

|  |  |  |  |  |  |  |  |  |  |  | Bank
|  |  |  |  |  | 12/31/2021 |  |  |  |  |  | 12/31/2020
Trading |  | Notional (1) |  | Cost |  | Fair Value |  | Notional (1) |  | Cost |  | Fair Value
Swap |  | 837,762,019 |  | (1,804,602) |  | (1,694,036) |  | 476,214,481 |  | (2,838,239) |  | (3,179,094)
Assets |  | 418,137,448 |  | 13,189,437 |  | 14,499,987 |  | 317,619,156 |  | 6,511,030 |  | 14,746,581
CDI (Interbank Deposit Rates) |  | 66,837,268 |  | 318,541 |  | 1,826,150 |  | 52,270,726 |  | 326,585 |  | 334,690
Fixed Interest Rate - Real |  | 231,741,021 |  | 9,269,271 |  | 8,932,246 |  | 59,799,047 |  | 4,013,562 |  | 9,607,342
Indexed to Price and Interest Rates |  | 2,089,110 |  | 799,550 |  | 298,439 |  | 5,124,411 |  | 959,322 |  | 1,093,119
Foreign Currency |  | 91,837,446 |  | 2,775,313 |  | 3,205,330 |  | 198,880,422 |  | 950,048 |  | 3,408,073
Others |  | 25,632,603 |  | 26,763 |  | 237,822 |  | 1,544,550 |  | 261,513 |  | 303,357
Liabilities |  | 419,624,570 |  | (14,994,039) |  | (16,194,023) |  | 158,595,325 |  | (9,349,269) |  | (17,925,675)
CDI (Interbank Deposit Rates) |  | 321,402,883 |  | (4,171,481) |  | (12,350,345) |  | 46,403,968 |  | (6,911,747) |  | (14,018,319)
Fixed Interest Rate - Real |  | 48,874,762 |  | (6,760,576) |  | (2,408,062) |  | 69,076,757 |  | (2,183,507) |  | (2,772,479)
Indexed to Price and Interest Rates |  | 22,827,336 |  | (28,407) |  | (1,142,945) |  | 33,026,691 |  | (25) |  | (450,958)
Foreign Currency |  | 887,129 |  | (4,006,955) |  | (54,849) |  | 7,906,521 |  | (231,185) |  | (327,145)
Others |  | 25,632,461 |  | (26,621) |  | (237,822) |  | 2,181,388 |  | (22,805) |  | (356,774)
Options |  | 1,130,172,099 |  | (610,691) |  | (653,704) |  | 1,963,194,665 |  | (282,109) |  | (62,590)
Purchased Position |  | 564,829,758 |  | 1,225,532 |  | 1,548,530 |  | 969,622,684 |  | 1,869,805 |  | 4,448,585
Call Option - Foreign Currency |  | 9,898,179 |  | 271,464 |  | 382,237 |  | 1,188,387 |  | 47,898 |  | 39,201
Put Option - Foreign Currency |  | 4,094,316 |  | 140,280 |  | 187,123 |  | 1,948,673 |  | 79,019 |  | 109,077
Call Option - Other |  | 31,248,540 |  | 444,648 |  | 673,616 |  | 101,568,876 |  | 558,794 |  | 563,157
Interbank Market |  | 28,499,055 |  | 444,446 |  | 673,202 |  | 101,421,659 |  | 557,167 |  | 556,039
Others (2) |  | 2,749,485 |  | 203 |  | 414 |  | 147,217 |  | 1,627 |  | 7,118
Put Option - Other |  | 519,588,723 |  | 369,140 |  | 305,553 |  | 864,916,748 |  | 1,184,094 |  | 3,737,150
Interbank Market |  | 519,588,723 |  | 369,140 |  | 305,553 |  | 864,852,555 |  | 1,183,630 |  | 3,733,690
Others (2) |  | - |  | - |  | - |  | 64,193 |  | 464 |  | 3,460
Sold Position |  | 565,342,341 |  | (1,836,224) |  | (2,202,234) |  | 993,571,981 |  | (2,151,914) |  | (4,511,175)
Call Option - Foreign Currency |  | 4,111,016 |  | (170,553) |  | (152,348) |  | 1,537,669 |  | (70,201) |  | 699,243
Put Option - Foreign Currency |  | 4,017,161 |  | (348,715) |  | (287,825) |  | 2,315,918 |  | (137,061) |  | (192,334)
Call Option - Other |  | 33,383,234 |  | (719,460) |  | (872,335) |  | 120,254,124 |  | (588,023) |  | (464,404)
Interbank Market |  | 31,730,928 |  | (713,773) |  | (858,586) |  | 120,156,285 |  | (566,813) |  | (464,404)
Others (2) |  | 1,652,305 |  | (5,687) |  | (13,749) |  | 97,839 |  | (21,210) |  | -
Put Option - Other |  | 523,830,930 |  | (597,497) |  | (889,726) |  | 869,464,270 |  | (1,356,629) |  | (4,553,680)
Interbank Market |  | 523,830,930 |  | (597,497) |  | (889,726) |  | 869,328,317 |  | (1,350,314) |  | (4,597,426)
Others (2) |  | - |  | - |  | - |  | 135,953 |  | (6,315) |  | 43,746
Futures Contracts |  | 287,984,278 |  | - |  | - |  | 268,807,003 |  | - |  | -
Purchased Position |  | 148,237,279 |  | - |  | - |  | 109,940,706 |  | - |  | -
Exchange Coupon (DDI) |  | 85,931,389 |  | - |  | - |  | 12,438,698 |  | - |  | -
Interest Rates (DI1 and DIA) |  | 28,491,764 |  | - |  | - |  | 97,502,008 |  | - |  | -
Foreign Currency |  | 33,797,350 |  | - |  | - |  | - |  | - |  | -
Indexes (3) |  | 16,776 |  | - |  | - |  | - |  | - |  | -
Sold Position |  | 139,746,999 |  | - |  | - |  | 158,866,296 |  | - |  | -
Exchange Coupon (DDI) |  | 60,606,204 |  | - |  | - |  | 73,114,013 |  | - |  | -

Interest Rates (DI1 and DIA) |  | 53,267,620 |  | - |  | - |  | 67,323,206 |  | - |  | -
Foreign Currency |  | 25,678,296 |  | - |  | - |  | 18,172,817 |  | - |  | -
Indexes (3) |  | 194,879 |  | - |  | - |  | 256,260 |  | - |  | -
Forward Contracts and Others |  | 174,435,332 |  | 2,836,843 |  | (866,701) |  | 102,561,361 |  | 894,559 |  | 395,274
Purchased Commitment |  | 96,509,221 |  | 5,345,415 |  | 12,892,381 |  | 64,787,891 |  | 1,303,693 |  | 13,085,550
Currencies |  | 83,752,185 |  | 2,738,485 |  | 10,306,159 |  | 57,121,562 |  | 1,303,693 |  | 13,077,413
Others |  | 12,757,036 |  | 2,606,930 |  | 2,586,222 |  | 7,666,329 |  | - |  | 8,137
Sell Commitment |  | 77,926,111 |  | (2,508,572) |  | (13,759,082) |  | 37,773,470 |  | (409,134) |  | (12,690,276)
Currencies |  | 71,611,500 |  | (1,141,826) |  | (12,586,625) |  | 37,294,944 |  | (408,912) |  | (12,692,636)
Others |  | 6,314,611 |  | (1,366,746) |  | (1,172,457) |  | 478,526 |  | (222) |  | 2,360

|  |  |  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  | 12/31/2021 |  |  |  |  |  | 12/31/2020
Trading |  | Notional (1) |  | Cost |  | Fair Value |  | Notional (1) |  | Cost |  | Fair Value
Swap |  | 841,676,369 |  | (1,804,602) |  | (897,350) |  | 408,037,877 |  | (2,838,239) |  | (3,922,555)
Assets |  | 422,001,798 |  | 13,189,437 |  | 7,641,355 |  | 283,308,405 |  | 6,511,030 |  | 14,729,641
CDI (Interbank Deposit Rates) |  | 66,837,268 |  | 318,541 |  | (778,177) |  | 45,872,335 |  | 326,585 |  | 2,686,294
Fixed Interest Rate - Real |  | 235,605,371 |  | 9,269,271 |  | 6,412,471 |  | 54,159,847 |  | 4,013,562 |  | 9,607,343
Indexed to Price and Interest Rates |  | 2,089,110 |  | 799,550 |  | (234,488) |  | 5,124,411 |  | 959,322 |  | 1,093,119
Foreign Currency |  | 91,837,446 |  | 2,775,313 |  | 2,003,728 |  | 178,076,136 |  | 950,048 |  | 1,039,528
Others |  | 25,632,603 |  | 26,763 |  | 237,822 |  | 75,676 |  | 261,513 |  | 303,357
Liabilities |  | 419,674,570 |  | (14,994,039) |  | (8,538,705) |  | 124,729,472 |  | (9,349,269) |  | (18,652,196)
CDI (Interbank Deposit Rates) |  | 321,402,883 |  | (4,171,481) |  | (12,327,484) |  | 33,239,800 |  | (6,911,747) |  | (14,018,319)
Fixed Interest Rate - Real |  | 48,874,762 |  | (6,760,576) |  | 2,467,425 |  | 49,644,709 |  | (2,183,507) |  | (2,772,479)
Indexed to Price and Interest Rates |  | 22,827,336 |  | (28,407) |  | (728,677) |  | 33,026,691 |  | (25) |  | (450,958)
Foreign Currency |  | 937,129 |  | (4,006,955) |  | 2,287,852 |  | 6,636,884 |  | (231,185) |  | 153,695
Others |  | 25,632,461 |  | (26,621) |  | (237,822) |  | 2,181,388 |  | (22,805) |  | (1,564,135)
Options |  | 1,130,172,099 |  | (610,691) |  | (885,703) |  | 2,043,286,079 |  | (282,108) |  | 52,017
Purchased Position |  | 564,829,758 |  | 1,225,532 |  | 1,370,541 |  | 1,006,266,895 |  | 1,869,805 |  | 4,979,011
Call Option - Foreign Currency |  | 9,898,179 |  | 271,464 |  | 382,237 |  | 1,188,387 |  | 47,898 |  | 39,201
Put Option - Foreign Currency |  | 4,094,316 |  | 140,280 |  | 187,123 |  | 1,948,673 |  | 79,019 |  | 109,077
Call Option - Other |  | 31,248,540 |  | 444,648 |  | 495,628 |  | 134,761,946 |  | 558,794 |  | 1,093,583
Interbank Market |  | 28,499,055 |  | 444,446 |  | 495,214 |  | 101,421,659 |  | 557,167 |  | 556,039
Others (2) |  | 2,749,485 |  | 203 |  | 414 |  | 33,340,287 |  | 1,627 |  | 537,544
Put Option - Other |  | 519,588,723 |  | 369,140 |  | 305,553 |  | 868,367,889 |  | 1,184,094 |  | 3,737,150
Interbank Market |  | 519,588,723 |  | 369,140 |  | 305,553 |  | 864,852,555 |  | 1,183,630 |  | 3,733,690
Others (2) |  | - |  | - |  | - |  | 3,515,334 |  | 464 |  | 3,460
Sold Position |  | 565,342,341 |  | (1,836,224) |  | (2,256,244) |  | 1,037,019,184 |  | (2,151,913) |  | (4,926,994)
Call Option - Foreign Currency |  | 4,111,016 |  | (170,553) |  | (152,348) |  | 1,537,669 |  | (70,201) |  | 699,241
Put Option - Foreign Currency |  | 4,017,161 |  | (348,715) |  | (287,825) |  | 2,315,918 |  | (137,061) |  | (192,334)
Call Option - Other |  | 33,383,234 |  | (719,460) |  | (872,335) |  | 130,919,392 |  | (588,022) |  | (453,918)
Interbank Market |  | 31,730,928 |  | (713,773) |  | (858,586) |  | 120,156,284 |  | (566,812) |  | (464,404)
Others (2) |  | 1,652,305 |  | (5,687) |  | (13,749) |  | 10,763,108 |  | (21,210) |  | 10,486
Put Option - Other |  | 523,830,930 |  | (597,497) |  | (943,736) |  | 902,246,205 |  | (1,356,629) |  | (4,979,983)

Interbank Market |  | 523,830,930 |  | (597,497) |  | (943,736) |  | 869,328,317 |  | (1,350,314) |  | (4,597,426)
Others (2) |  | - |  | - |  | - |  | 32,917,888 |  | (6,315) |  | (382,557)
Futures Contracts |  | 287,984,278 |  | - |  | - |  | 270,258,562 |  | - |  | -
Purchased Position |  | 148,237,279 |  | - |  | - |  | 110,275,865 |  | - |  | -
Exchange Coupon (DDI) |  | 85,931,389 |  | - |  | - |  | 12,438,695 |  | - |  | -
Interest Rates (DI1 and DIA) |  | 28,491,764 |  | - |  | - |  | 97,837,170 |  | - |  | -
Foreign Currency |  | 33,797,350 |  | - |  | - |  | - |  | - |  | -
Indexes (3) |  | 16,776 |  | - |  | - |  | - |  | - |  | -
Sold Position |  | 139,746,999 |  | - |  | - |  | 159,982,697 |  | - |  | -
Exchange Coupon (DDI) |  | 60,606,204 |  | - |  | - |  | 73,114,013 |  | - |  | -
Interest Rates (DI1 and DIA) |  | 53,267,620 |  | - |  | - |  | 67,958,767 |  | - |  | -
Foreign Currency |  | 25,678,296 |  | - |  | - |  | 18,653,657 |  | - |  | -
Indexes (3) |  | 194,879 |  | - |  | - |  | 256,260 |  | - |  | -
Forward Contracts and Others |  | 174,435,332 |  | 2,836,843 |  | (1,774,454) |  | 107,761,737 |  | 2,693,758 |  | 441,148
Purchased Commitment |  | 96,509,221 |  | 5,345,415 |  | 12,077,828 |  | 67,378,024 |  | 1,370,653 |  | 13,131,423
Currencies |  | 83,752,185 |  | 2,738,485 |  | 9,491,606 |  | 59,711,695 |  | 1,370,653 |  | 13,077,412
Others |  | 12,757,036 |  | 2,606,930 |  | 2,586,222 |  | 7,666,329 |  | - |  | 54,011
Sell Commitment |  | 77,926,111 |  | (2,508,572) |  | (13,852,282) |  | 40,383,713 |  | 1,323,105 |  | (12,690,275)
Currencies |  | 71,611,500 |  | (1,141,826) |  | (12,679,825) |  | 39,905,187 |  | 1,323,327 |  | (12,692,635)
Others |  | 6,314,611 |  | (1,366,746) |  | (1,172,457) |  | 478,526 |  | (222) |  | 2,360

(1) Nominal value of the updated contracts.

(2) Includes options of indexes, mainly being options involving US treasury, shares and stock indexes.

(3) Includes Bovespa and S&P indexes.

III) Derivative Financial Instruments by Counterparty, Opening by Maturity and Trading Market

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Bank
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Notional
|  |  |  |  |  |  |  |  |  | By Counterparty |  |  |  |  |  | By Maturity |  |  |  | Trading Market
|  |  |  |  |  |  |  | 12/31/2021 |  | 12/31/2020 |  |  |  |  |  | 12/31/2021 |  |  |  | 12/31/2021
|  |  |  | Related |  | Financial |  |  |  |  |  | Up to |  | From 3 to |  | Over |  |  |  | Over the Counter (3)
|  | Customers |  | Parties |  | Institutions (1) |  | Total |  | Total |  | 3 Months |  | 12 Months |  | 12 Months |  | Exchange (2) |
Swap |  | 152,650,125 |  | 233,667,783 |  | 31,819,540 |  | 418,137,448 |  | 317,619,156 |  | 30,501,795 |  | 99,817,727 |  | 287,817,926 |  | 111,418,682 |  | 306,718,767
Options |  | 1,127,446,708 |  | 1,641,361 |  | 1,084,030 |  | 1,130,172,099 |  | 1,963,194,665 |  | 749,406,698 |  | 128,500,299 |  | 252,265,102 |  | 1,094,484,434 |  | 35,687,665
Futures Contracts |  | 287,984,278 |  | - |  | - |  | 287,984,278 |  | 268,807,002 |  | 167,320,563 |  | 45,239,639 |  | 75,424,076 |  | 287,984,278 |  | -
Forward Contracts and Others |  | 77,281,418 |  | 96,857,222 |  | 296,693 |  | 174,435,332 |  | 102,561,361 |  | 72,761,669 |  | 67,060,436 |  | 34,613,227 |  | 7,108,898 |  | 167,326,434
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Notional
|  |  |  |  |  |  |  |  |  | By Counterparty |  |  |  |  |  | By Maturity |  |  |  | Trading Market
|  |  |  |  |  |  |  | 12/31/2021 |  | 12/31/2020 |  |  |  |  |  | 12/31/2021 |  |  |  | 12/31/2021
|  |  |  | Related |  | Financial |  |  |  |  |  | Up to |  | From 3 to |  | Over |  |  |  | Over the Counter (3)
|  | Customers |  | Parties |  | Institutions (1) |  | Total |  | Total |  | 3 Months |  | 12 Months |  | 12 Months |  | Exchange (2) |
Swap |  | 152,650,125 |  | 237,532,133 |  | 31,819,540 |  | 422,001,798 |  | 283,308,405 |  | 30,501,795 |  | 103,682,077 |  | 287,817,926 |  | 111,418,682 |  | 310,583,117

Options |  | 1,127,446,708 |  | 1,641,361 |  | 1,084,030 |  | 1,130,172,099 |  | 2,043,286,079 |  | 749,406,698 |  | 128,500,299 |  | 252,265,102 |  | 1,094,484,434 |  | 35,687,665
Futures Contracts |  | 287,984,278 |  | - |  | - |  | 287,984,278 |  | 270,258,562 |  | 167,320,563 |  | 45,239,639 |  | 75,424,076 |  | 287,984,278 |  | -
Forward Contracts and Others |  | 77,281,418 |  | 96,857,222 |  | 296,693 |  | 174,435,332 |  | 107,761,737 |  | 72,761,669 |  | 67,060,436 |  | 34,613,227 |  | 7,108,898 |  | 167,326,434

(1) Includes operations whose counterparty is B3 S.A. - Brazil, Bolsa, Balcão (B3) and other stock and commodity exchanges.

IV) Hedge Accounting

The effectiveness determined for the hedge portfolio is in accordance with Bacen Circular 3,082 / 2002 and the following hedge accounting structures were established:

IV.I) Market Risk Hedge

The Bank's market risk hedging strategies consist of protection structures against changes in market risk, receipts and payments of interest related to recognized assets and liabilities.

The market risk hedge management methodology adopted by the Bank segregates transactions by risk factor (e.g.: Real/Dollar exchange risk, risk of pre-fixed interest rate in reais, risk of dollar exchange coupon, risk of inflation, interest risk, etc.). Transactions generate exposures that are consolidated by risk factor and compared to pre-established internal limits.

In order to protect the market risk variation in the receipt and payment of interest, the Bank uses interest rate swaps and futures contracts related to fixed-rate assets and liabilities.

The Bank applies the market risk hedge as follows:

· Designates Foreign Currency swaps + Coupon versus % CDI and Pre-Real Interest Rate or US Dollar futures (DOL, DDI/DI) as a derivative instrument in Hedge Accounting structures, with foreign currency loan operations as the object.

· The Bank has a portfolio of assets indexed to the Euro and traded at the Offshore agency. In the transaction, the value of the asset in Euro will be converted to Dollar at the exchange contract rate for entering the transaction. After the conversion, the principal amount of the operation, already expressed in dollars, will be adjusted by a floating or pre-fixed rate. The assets will be hedged with Swap Cross Currency, in order to transfer the risk in Euro to LIBOR + Coupon.

· The Bank has pre-fixed interest rate risk generated by government bonds (NTN-F and LTN) in the portfolio of Financial Assets available for sale. To manage this mismatch, the entity contracts DI futures on the Exchange and designates them as a hedging instrument in a hedge accounting framework.

· The Bank has risk to the IPCA index generated by debentures in the portfolio of securities available for sale. To manage this mismatch, the Bank contracts IPCA futures (DAP) on the Exchange and designates them as a protection instrument in a Hedge Accounting structure.

· Santander Leasing has pre-fixed interest rate risk generated by government bonds (NTN-F) in the portfolio of securities available for sale. To manage this mismatch, the entity enters into interest rate swaps and designates them as a hedging instrument in a hedge accounting framework.

· The Bank has a pre-fixed interest rate risk on its liabilities through issues of real estate letters of credit (LCI). To manage this mismatch, the entity contracts DI futures on the Exchange and designates them as a hedging instrument in a hedge accounting framework.

· The Bank has a risk related to the IPCA index generated by the issuance of a Guaranteed Real Estate Bill. To manage this mismatch, the Bank contracts IPCA futures (DAP) on the Exchange and designates them as a protection instrument in a Hedge Accounting structure.

In market risk hedge, the results, both on hedging instruments and on the objects (attributable to the type of risk being hedged) are recognized directly in the income statement.

IV.II) Cash Flow Hedge

The Bank's cash flow hedge strategies consist of hedging exposure to variations in cash flows, interest payments and exchange rate exposure, which are attributable to changes in interest rates relating to recognized assets and liabilities and changes exchange rates of unrecognized assets and liabilities.

The Bank applies cash flow hedge as follows:

• Contracts fixed dollar-indexed asset swaps and liabilities in foreign currency and designates them as a hedging instrument in a Cash Flow Hedge structure, having as object foreign currency loan transactions negotiated with third parties through offshore agencies and securities of the Brazilian external debt held to maturity.

• Contracts Dollar futures or DDI + DI Futures (Synthetic Dollar Futures) and designates them as a hedging instrument in a Cash Flow Hedge structure, having as object the Bank's credit portfolio in Dollars and Promissory Notes in portfolio of securities available for sale.

• Banco RCI Brasil SA has hedge operations whose purpose is funding operations with financial bills (LF), bills of exchange (LC) and Interbank Deposit Certificates (CDI) indexed to CDI and uses interest rate swaps to make the pre-fixed funding and predicting future cash flows.

In cash flow hedge, the effective portion of the variation in the value of the hedging instrument is temporarily recognized in equity under equity valuation adjustments until the forecast transactions occur, at which time this portion is recognized in the income statement. The ineffective portion of the variation in the value of foreign exchange hedge derivatives is recognized directly in the income statement. On December 31, 2021, and December 31, 2020, no results referring to the ineffective portion were recorded.

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Bank
|  |  |  |  |  |  |  | 12/31/2021 |  |  |  |  |  |  |  |  | 12/31/2020
Strategies |  | Accounting Value |  | Notional |  | Accounting Value |  | Notional |
Market Risk Hedge |  | Objects (1) |  | Instruments (1) |  | Objects (1) |  | Instruments (1) |  |  | Objects (1) |  | Instruments (1) |  | Objects (1) |  | Instruments (1)
Swap Contracts |  | 84,937 |  | 82,563 |  | 559,396 |  | 551,710 |  |  | - |  | - |  | - |  | -
Credit Operations Hedge |  | 84,937 |  | 82,563 |  | 559,396 |  | 551,710 |  |  | - |  | - |  | - |  | -
Futures Contracts |  | 46,351,128 |  | 41,430,054 |  | 45,202,938 |  | 41,437,967 |  |  | 45,331,727 |  | 46,649,331 |  | 46,178,734 |  | 30,985,609
Credit Operations Hedge |  | 2,738,830 |  | 2,836,150 |  | 2,521,938 |  | 2,850,589 |  |  | - |  | - |  | - |  | -
Securities Hedge |  | 43,612,299 |  | 38,593,904 |  | 42,680,999 |  | 38,587,378 |  |  | 45,331,727 |  | 46,649,331 |  | 46,178,734 |  | 30,985,609
Cash Flow Hedge |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Swap Contracts |  | - |  | - |  | - |  | - |  |  | 6,786,840 |  | 6,622,857 |  | 5,316,632 |  | 4,502,378
Securities Hedge |  | - |  | - |  | - |  | - |  |  | 1,302,666 |  | 1,428,053 |  | 1,302,666 |  | 1,428,053
Funding Hedge |  | - |  | - |  | - |  | - |  |  | 5,484,174 |  | 5,194,804 |  | 4,013,966 |  | 3,074,325
Futures Contracts |  | 119,760,298 |  | 110,316,582 |  | 128,673,067 |  | 110,932,644 |  |  | 28,932,108 |  | 24,695,038 |  | 27,461,900 |  | 22,407,555
Credit Operations Hedge | 30,167,942 |  | 27,965,018 |  | 28,659,545 |  | 28,542,862 |  |  | 23,447,934 |  | 19,500,234 |  | 23,447,934 |  | 19,333,230
Securities Hedge |  | 79,293,570 |  | 71,320,756 |  | 89,837,000 |  | 71,320,781 |  |  | 5,484,174 |  | 5,194,804 |  | 4,013,966 |  | 3,074,325
Funding Hedge |  | 10,298,786 |  | 11,030,809 |  | 10,176,522 |  | 11,069,000 |  |  | - |  | - |  | - |  | -

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  |  |  | 12/31/2021 |  |  |  |  |  |  |  |  | 12/31/2020
Strategies |  | Accounting Value |  | Notional |  |  | Accounting Value |  | Notional
Market Risk Hedge |  | Objects (1) |  | Instruments (1) |  | Objects (1) |  | Instruments (1) |  |  | Objects (1) |  | Instruments (1) |  | Objects (1) |  | Instruments (1)
Swap Contracts |  | 84,937 |  | 82,563 |  | 559,396 |  | 551,710 |  |  | - |  | - |  | - |  | -
Credit Operations Hedge |  | 84,937 |  | 82,563 |  | 559,396 |  | 551,710 |  |  | - |  | - |  | - |  | -
Futures Contracts |  | 46,351,128 |  | 41,430,054 |  | 45,202,938 |  | 41,437,967 |  |  | 45,331,727 |  | 46,649,331 |  | 46,178,734 |  | 30,985,609
Credit Operations Hedge |  | 2,738,830 |  | 2,836,150 |  | 2,521,938 |  | 2,850,589 |  |  | - |  | - |  | - |  | -
Securities Hedge |  | 43,612,299 |  | 38,593,904 |  | 42,680,999 |  | 38,587,378 |  |  | 45,331,727 |  | 46,649,331 |  | 46,178,734 |  | 30,985,609

Cash Flow Hedge |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Swap Contracts |  | 4,799,882 |  | 3,922,255 |  | 5,904,442 |  | 3,864,350 |  |  | 6,786,840 |  | 6,622,857 |  | 5,316,632 |  | 4,502,378
Securities Hedge |  | - |  | - |  | - |  | - |  |  | 1,302,666 |  | 1,428,053 |  | 1,302,666 |  | 1,428,053
Funding Hedge |  | 4,799,882 |  | 3,922,255 |  | 5,904,442 |  | 3,864,350 |  |  | 5,484,174 |  | 5,194,804 |  | 4,013,966 |  | 3,074,325
Futures Contracts |  | 119,760,298 |  | 110,316,582 |  | 128,673,067 |  | 110,932,644 |  |  | 28,932,108 |  | 24,695,038 |  | 27,461,900 |  | 22,407,555
Credit Operations Hedge | 30,167,942 |  | 27,965,018 |  | 28,659,545 |  | 28,542,862 |  |  | 23,447,934 |  | 19,500,234 |  | 23,447,934 |  | 19,333,230
Securities Hedge |  | 79,293,570 |  | 71,320,756 |  | 89,837,000 |  | 71,320,781 |  |  | 5.484.174 |  | 5.194.804 |  | 4.013.966 |  | 3.074.325
Funding Hedge |  | 10,298,786 |  | 11,030,809 |  | 10,176,522 |  | 11,069,000 |  |  | - |  | - |  | - |  | -

(*) The Bank has cash flow hedge strategies, whose objects are assets in its portfolio, which is why we demonstrate the liability position of the respective instruments. For structures whose instruments are futures, we show the notional balance, recorded in a memorandum account.

(1) Creditor amounts refer to asset transactions and debtor transactions to liability transactions.

|  |  |  |  |  |  |  |  |  | Bank |  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  |  |  | 12/31/2021 |  | 12/31/2020 |  |  |  |  |  |  |  | 12/31/2021 |  | 12/31/2020
|  | Up to |  | From 3 to |  | Over |  |  |  |  |  | Up to |  | From 3 to |  | Over |  |  |  |
Strategies |  | 3 Months |  | 12 Months |  | 12 Months |  | Total |  | Total |  | 3 Months |  | 12 Months |  | 12 Months |  | Total |  | Total
Market Risk Hedge |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Swap Contracts |  | 19,965 |  | - |  | 64,802 |  | 84,767 |  | - |  | 19,965 |  | - |  | 64,802 |  | 84,767 |  | -
Credit Operations Hedge |  | 19,965 |  | - |  | 64,802 |  | 84,767 |  | - |  | 19,965 |  | - |  | 64,802 |  | 84,767 |  | -
Futures Contracts |  | 14,391,886 |  | 43,246,054 |  | (16,199,973) |  | 41,437,967 |  | 30,985,609 |  | 14,391,886 |  | 43,246,054 |  | (16,199,973) |  | 32,747,258 |  | 30,985,609
Credit Operations Hedge |  | 2,850,589 |  | - |  | - |  | 2,850,589 |  | 30,985,609 |  | 2,850,589 |  | - |  | - |  | 5,701,178 |  | 30,985,609
Securities Hedge |  | 11,541,297 |  | 43,246,054 |  | (16,199,973) |  | 38,587,378 |  | - |  | 11,541,297 |  | 43,246,054 |  | (16,199,973) |  | 27,046,080 |  | -
Cash Flow Hedge |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Swap Contracts |  | - |  | (135,888) |  | 3,864,350 |  | 3,728,462 |  | 1,428,053 |  | - |  | - |  | - |  | - |  | 4,502,378
Securities Hedge |  | - |  | - |  | - |  | - |  | 1,428,053 |  | - |  | - |  | - |  | - |  | 1,428,053
Funding Hedge |  | - |  | (135,888) |  | 3,864,350 |  | 3,728,462 |  | - |  | - |  | - |  | - |  | - |  | 3,074,325
Futures Contracts |  | 36,608,123 |  | 21,539,648 |  | 52,784,873 |  | 110,932,644 |  | 19,333,230 |  | 36,608,123 |  | 21,539,648 |  | 52,784,873 |  | 110,932,644 |  | 19,333,230
Credit Operations Hedge |  | 28,542,862 |  | - |  | - |  | 28,542,862 |  | 19,333,230 |  | 28,542,862 |  | - |  | - |  | 28,542,862 |  | 19,333,230
Securities Hedge |  | 8,065,260 |  | 21,539,648 |  | 41,715,873 |  | 71,320,781 |  | - |  | 8,065,260 |  | 21,539,648 |  | 41,715,873 |  | 71,320,781 |  | -
Funding Hedge |  | - |  | - |  | 11,069,000 |  | 11,069,000 |  | - |  | - |  | - |  | 11,069,000 |  | 11,069,000 |  | -

In the Bank and in the Consolidated, the mark-to-market effect of the active swap and futures contracts corresponds to a credit in the amount of R$193,793 (12/31/2020 - R$11,528) and is recorded in shareholders' equity, net of tax effects, of which R$569 will be realized against revenue in the next twelve months.

V) Information on Credit Derivatives

Banco Santander uses credit derivatives for the purposes of managing counterparty risk and meeting the demands of its customers, carrying out operations of purchase and sale of protection through credit default swaps and total return swaps, primarily related to securities with Brazilian sovereign risk.

Total Return Swaps - TRS

They are credit derivatives where the return of the reference obligation is exchanged for a cash flow and in which, in the event of a credit event, the protection buyer usually has the right to receive from the protection seller the equivalent to the difference between the updated value and the fair value (market value) of the reference obligation on the contract settlement date.

Credit Default Swaps - CDS

They are credit derivatives where, in the event of a credit event, the protection buyer is entitled to receive from the protection seller the equivalent to the difference between the face value of the CDS contract and the fair value (market value) of the reference obligation on the settlement date of the contract. In return, the seller receives a fee for the sale of the protection.

Below, the composition of the Credit Derivatives portfolio shown by its reference value and effect on the calculation of Required Shareholders' Equity (PLE).

|  |  |  |  |  |  |  | Bank/Consolidated
|  |  |  |  |  |  |  | Valor Nominal
|  |  |  | 12/31/2021 |  |  |  | 12/31/2020
|  | Retained Risk - Total Rate of Return Swap |  | Transferred Risk - Credit Swap |  | Retained Risk - Total Rate of Return Swap |  | Transferred Risk - Credit Swap
Credit Swaps |  | 3,984,392 |  | - |  | 3,984,392 |  | 519,670
Total |  | 3,984,392 |  | - |  | 3,984,392 |  | 519,670

During the semester, there were no credit swap operations or occurrence of credit events related to taxable events provided for in the contracts.

|  |  |  | 12/31/2021 |  |  |  | 12/31/2020
Maximum Potential for Future Payments - Gross |  | Over 12 Months |  | Total |  | Over 12 Months |  | Total
Per Instrument: CDS |  | 3,984,392 |  | 3,984,392 |  | 4,003,298 |  | 4,003,298
Per Risk Classification: Below Investment Grade |  | 3,984,392 |  | 3,984,392 |  | 4,003,298 |  | 4,003,298
Per Reference Entity: Brazilian Government |  | 3,984,392 |  | 3,984,392 |  | 4,003,298 |  | 4,003,298

VI) Derivative Financial Instruments - Margin Given in Guarantee

The margin given as collateral for transactions traded on B3 with its own and third party derivative financial instruments is composed of federal government securities.

|  |  |  | Bank |  |  |  | Consolidated
|  | 12/31/2021 |  | 12/31/2020 |  | 12/31/2021 |  | 12/31/2020
Financial Literature of the Treasury - LFT |  | 28,481,618 |  | 3,702,213 |  | 31,305,549 |  | 4,363,665
National Treasury Bills - LTN |  | 1,015,470 |  | 6,155,275 |  | 3,751,223 |  | 6,155,275
National Treasury Notes - NTN |  | 4,551,507 |  | 2,814,273 |  | 7,725,538 |  | 2,814,273
Total |  | 34,048,594 |  | 12,671,761 |  | 42,782,310 |  | 13,333,213

# 7. Interbank Accounts

The balance of the interbank relationship item is composed of restricted credits represented mainly by deposits made at Bacen to fulfill the requirements of compulsory on demand deposits, savings deposits and time deposits and by payments and receipts to be settled, represented by checks and other papers sent to the clearing service and payment transactions (active and passive position).

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

a) Loan Portfolio

|  |  |  | Bank |  |  |  | Consolidated
|  | 12/31/2021 |  | 12/31/2020 |  | 12/31/2021 |  | 12/31/2020
Lending Operations |  | 317,359,419 |  | 279,580,267 |  | 383,479,674 |  | 338,110,717
Loans and Discounted Titles |  | 209,544,801 |  | 179,058,116 |  | 211,026,403 |  | 179,172,031
Financing |  | 39,635,785 |  | 41,034,126 |  | 104,274,438 |  | 99,450,661
Rural and Agroindustrial - Financing |  | 13,409,499 |  | 13,659,898 |  | 13,409,499 |  | 13,659,898
Real Estate Financing |  | 54,769,334 |  | 45,828,127 |  | 54,769,334 |  | 45,828,127
Leasing Operations |  | - |  | - |  | 2,695,952 |  | 2,471,384
Advances on Foreign Exchange Contracts (1) |  | 6,380,642 |  | 6,310,254 |  | 6,380,642 |  | 6,310,254
Other Receivables (2) |  | 66,841,237 |  | 61,569,706 |  | 70,101,593 |  | 64,758,539
Credits for Avals and Sureties Honored |  | 169,942 |  | 228,754 |  | 471,385 |  | 228,754
Income Receivable from Advances Granted - Foreign Exchange Portfolio (Note 9) | 131.244 |  | 150,513 |  | 131,244 |  | 150,513
Other Receivables – Other |  | 66,540,051 |  | 61,190,439 |  | 69,498,964 |  | 64,379,272
Total |  | 390,581,298 |  | 347,460,227 |  | 462,657,861 |  | 411,650,894

(1) Advances on foreign exchange contracts are classified as a reduction of other obligations.

(2) Debtors for purchase of securities and assets and securities and credits receivable (Note 12).

Sale or Transfer of Financial Assets

Pursuant to CMN Resolution No. 3,533/2008 and subsequent amendments, credit assignment operations with substantial retention of risks and benefits, from January 1, 2012 on, began to remain recorded in the credit portfolio. For credit assignment operations carried out until December 31, 2011, regardless of the retention or substantial transfer of risks and benefits, the financial assets were derecognized from the registration of the original operation and the result determined in the assignment was appropriated to the result for the period.

(i) With Substantial Transfer of Risks and Benefits

In the Bank and in the Consolidated, during the period ended December 31, 2021, credit assignment operations without recourse were carried out in the amount of R$13,255,965 (12/31/2020 - R$1,417,146), of which R$567,010 in Active Portfolio, generating a result of R$195,649 (12/31/2020 - R$12,233), and R$12,688,955 in Loss Portfolio. These amounts were transacted with companies not belonging to the Group.

(ii) With Substantial Retention of Risks and Benefits

In December 2011, the Bank assigned credits with co-obligation related to real estate financing in the amount of R$688,821, maturing in October 2041. On December 31, 2021, the present value of the assigned operations is R$40,790 (12/31/2020- R$55,284).

These assignment operations were carried out with a co-obligation clause, with mandatory repurchase in the following situations:

- Non-performing contracts for a period exceeding 90 consecutive days;

- Contracts subject to renegotiation;

- Contracts subject to portability, pursuant to CMN Resolution No. 3401/2006; and

- Contracts subject to intervention.

The compulsory repurchase amount will be calculated by the debit balance of the credit duly updated on the respective repurchase date.

From the date of assignment, the cash flows from the assigned operations will be paid directly to the assignee.

b) Loan Portfolio by Maturity

|  |  |  | Bank |  |  |  | Consolidated
|  | 12/31/2021 |  | 12/31/2020 |  | 12/31/2021 |  | 12/31/2020
Overdue |  | 8,604,538 |  | 5,015,638 |  | 9,851,990 |  | 5,842,250
Due to: |  |  |  |  |  |  |  |
Up to 3 Months |  | 95,540,587 |  | 101,913,270 |  | 105,690,188 |  | 111,058,613
From 3 to 12 Months |  | 94,386,260 |  | 80,400,014 |  | 118,277,838 |  | 100,998,401
Over 12 Months |  | 192,049,913 |  | 160,131,305 |  | 228,837,845 |  | 193,751,630
Total |  | 390,581,298 |  | 347,460,227 |  | 462,657,861 |  | 411,650,894

c) Loan Portfolio by Business Sector

|  |  |  | Bank |  |  |  | Consolidated
|  | 12/31/2021 |  | 12/31/2020 |  | 12/31/2021 |  | 12/31/2020
Private Sector |  | 389,584,358 |  | 346,441,422 |  | 461,660,021 |  | 410,630,891
Industry |  | 66,175,356 |  | 65,984,136 |  | 67,326,360 |  | 67,264,749
Commercial |  | 46,914,290 |  | 43,967,769 |  | 52,116,991 |  | 47,902,610
Financial Institutions |  | 1,409,948 |  | 2,140,177 |  | 1,139,660 |  | 2,157,962
Services and Other (1) |  | 64,288,268 |  | 58,085,560 |  | 70,874,163 |  | 60,971,259
Individuals |  | 206,057,453 |  | 172,102,567 |  | 265,381,454 |  | 228,089,977
Credit Cards |  | 45,804,859 |  | 37,427,267 |  | 45,804,859 |  | 37,427,267
Mortgage Loans |  | 52,992,797 |  | 43,993,132 |  | 52,992,797 |  | 43,993,132
Payroll Loans |  | 52,303,502 |  | 47,029,722 |  | 52,303,502 |  | 47,029,722
Financing and Vehicles Lease |  | 1,703,858 |  | 2,249,094 |  | 56,514,921 |  | 55,874,243
Others (2) |  | 53,252,437 |  | 41,403,352 |  | 57,765,375 |  | 43,765,613
Agricultural |  | 4,739,043 |  | 4,161,213 |  | 4,821,393 |  | 4,244,334
Public Sector |  | 996,940 |  | 1,018,805 |  | 997,840 |  | 1,020,003
State |  | 331,735 |  | 399,669 |  | 331,735 |  | 399,669
Municipal |  | 665,205 |  | 619,136 |  | 666,105 |  | 620,334
Total |  | 390,581,298 |  | 347,460,227 |  | 462,657,861 |  | 411,650,894

(1) Includes the activities of mortgage companies - business plan, transportation services, health, personal and others.

(2) Includes personal loans, overdraft among others.

d) Classification of Loan Portfolio and Respective Allowance for Loan Losses by Risk Level

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Bank
|  |  |  |  |  |  |  |  |  |  |  |  |  | 12/31/2021 |  |  |  |  |  |  |  |  |  |  |  | 12/31/2020
|  |  |  | Loan Portfolio |  | Allowance |  | Loan Portfolio |  | Allowance
Risk Level |  | % Minimum Allowance Required | Current |  | Past Due (1) |  | Total (3) |  | Required |  | Additional (2) | Total |  | Current |  | Past Due (1) |  | Total (3) |  | Required |  | Additional (2) | Total
AA |  | 0.0% |  | 180,139,073 |  | - |  | 180,139,073 |  | - |  | - |  | - |  | 162,569,532 |  | - |  | 162,569,532 |  | - |  | - |  | -
A |  | 0.5% |  | 104,992,054 |  | - |  | 104,992,054 |  | 524,960 |  | 2 |  | 524,962 |  | 98,084,064 |  | - |  | 98,084,064 |  | 490,420 |  | 331,959 |  | 822,379
B |  | 1.0% |  | 35,871,587 |  | 2,253,434 |  | 38,125,021 |  | 381,250 |  | 167 |  | 381,417 |  | 31,497,816 |  | 1,989,791 |  | 33,487,607 |  | 334,876 |  | 572,154 |  | 907,030
C |  | 3.0% |  | 29,029,189 |  | 2,798,938 |  | 31,828,127 |  | 954,844 |  | 1,899 |  | 956,743 |  | 23,128,620 |  | 1,789,539 |  | 24,918,159 |  | 747,545 |  | 1,561,868 |  | 2,309,413
D |  | 10.0% |  | 10,439,757 |  | 3,063,622 |  | 13,503,379 |  | 1,350,338 |  | 2,206,475 |  | 3,556,813 |  | 8,215,630 |  | 1,943,697 |  | 10,159,327 |  | 1,015,933 |  | 1,763,634 |  | 2,779,567
E |  | 30.0% |  | 2,346,953 |  | 2,301,009 |  | 4,647,962 |  | 1,394,389 |  | 757,194 |  | 2,151,583 |  | 2,254,334 |  | 1,547,171 |  | 3,801,505 |  | 1,140,451 |  | 600,261 |  | 1,740,712
F |  | 50.0% |  | 1,828,300 |  | 1,831,787 |  | 3,660,087 |  | 1,830,043 |  | 582,385 |  | 2,412,428 |  | 1,831,369 |  | 1,335,331 |  | 3,166,700 |  | 1,583,350 |  | 503,804 |  | 2,087,154
G |  | 70.0% |  | 1,865,631 |  | 1,570,929 |  | 3,436,560 |  | 2,405,590 |  | 643,556 |  | 3,049,146 |  | 1,771,853 |  | 1,069,343 |  | 2,841,196 |  | 1,988,837 |  | 764,272 |  | 2,753,109
H |  | 100.0% |  | 3,375,689 |  | 6,964,787 |  | 10,340,476 |  | 10,340,475 |  | - |  | 10,340,475 |  | 3,390,140 |  | 5,045,940 |  | 8,436,080 |  | 8,436,080 |  | - |  | 8,436,080
Total |  |  |  | 369,888,233 |  | 20,784,506 |  | 390,672,739 |  | 19,181,889 |  | 4,191,678 |  | 23,373,567 |  | 332,743,358 |  | 14,720,812 |  | 347,464,170 |  | 15,737,492 |  | 6,097,952 |  | 21,835,444
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  |  |  |  |  |  |  |  |  | 12/31/2021 |  |  |  |  |  |  |  |  |  |  |  | 12/31/2020
|  |  |  | Loan Portfolio |  | Allowance |  | Loan Portfolio |  | Allowance
Risk Level | % Minimum Allowance Required | Current |  | Past Due (1) |  | Total (3) |  | Required |  | Additional (2) | Total |  | Current |  | Past Due (1) |  | Total (3) |  | Required |  | Additional (2) | Total
AA |  | 0.0% |  | 199,635,521 |  | - |  | 199,635,521 |  | - |  | - |  | - |  | 174,672,176 |  | - |  | 174,672,176 |  | - |  | - |  | -
A |  | 0.5% |  | 138,688,667 |  | 2,090 |  | 138,690,757 |  | 693,454 |  | 2 |  | 693,456 |  | 136,895,625 |  | - |  | 136,895,625 |  | 684,478 |  | 331,960 |  | 1,016,438
B |  | 1.0% |  | 44,189,990 |  | 3,890,801 |  | 48,080,791 |  | 480,808 |  | 167 |  | 480,975 |  | 37,161,806 |  | 2,947,768 |  | 40,109,574 |  | 401,096 |  | 572,154 |  | 973,250
C |  | 3.0% |  | 31,313,221 |  | 4,196,290 |  | 35,509,511 |  | 1,065,285 |  | 1,899 |  | 1,067,184 |  | 24,491,130 |  | 2,742,311 |  | 27,233,441 |  | 817,002 |  | 1,575,498 |  | 2,392,500
D |  | 10.0% |  | 11,009,408 |  | 3,847,376 |  | 14,856,784 |  | 1,485,678 |  | 2,245,960 |  | 3,731,638 |  | 8,768,027 |  | 2,459,727 |  | 11,227,754 |  | 1,122,775 |  | 1,927,260 |  | 3,050,035
E |  | 30.0% |  | 2,633,675 |  | 2,896,095 |  | 5,529,770 |  | 1,658,931 |  | 887,864 |  | 2,546,795 |  | 2,374,369 |  | 2,124,173 |  | 4,498,542 |  | 1,349,562 |  | 704,758 |  | 2,054,320
F |  | 50.0% |  | 1,936,705 |  | 2,275,793 |  | 4,212,498 |  | 2,106,249 |  | 690,148 |  | 2,796,397 |  | 1,929,261 |  | 1,868,256 |  | 3,797,517 |  | 1,898,759 |  | 578,271 |  | 2,477,030
G |  | 70.0% |  | 2,031,334 |  | 1,916,832 |  | 3,948,166 |  | 2,763,716 |  | 765,637 |  | 3,529,353 |  | 1,848,376 |  | 1,366,129 |  | 3,214,505 |  | 2,250,153 |  | 848,059 |  | 3,098,212
H |  | 100.0% |  | 3,690,054 |  | 8,595,444 |  | 12,285,498 |  | 12,285,496 |  | - |  | 12,285,498 |  | 3,661,255 |  | 6,344,449 |  | 10,005,704 |  | 10,005,704 |  | - |  | 10,005,704
Total |  |  |  | 435,128,575 |  | 27,620,721 |  | 462,749,296 |  | 22,539,617 |  | 4,591,677 |  | 27,131,296 |  | 391,802,025 |  | 19,852,813 |  | 411,654,838 |  | 18,529,529 |  | 6,537,960 |  | 25,067,489

(1) Includes due and overdue installments.

(2) The additional provision is constituted mainly based on the expected realization of the loan portfolio, in addition to the minimum required by current regulations.

(3) In the Bank and in the Consolidated, the total loan portfolio includes the amount of R$91,435 (12/31/2020 - R$3,944), referring to the adjustment to market value of credit operations that are object of protection, recorded in accordance with article 5 of Circular Letter 3,624 of Bacen of December 26, 2013 and which are not included in the note on risk levels.

Emergency Employment Support Program (PESE)

Pursuant to CMN Resolution No. 4,846/20, we demonstrate below the operations related to the Emergency Employment Support Program (PESE), classified by risk level and together with the amount of the provision made for each risk level:

|  |  |  |  | Bank |  | Consolidated
|  |  |  |  | 12/31/2021 |  | 12/31/2021
Risk Level |  | % Minimun Allowance Required |  | Assets | Allowance Required | Assets | Allowance Required
AA |  | 0.0% |  | 9,132 | - | 9,132 | -
A |  | 0.5% |  | 401,095 | 301 | 401,095 | 301
B |  | 1.0% |  | 276,818 | 415 | 276,818 | 415
C |  | 3.0% |  | 285,783 | 1,286 | 285,783 | 1,286
D |  | 10.0% |  | 165,099 | 2,476 | 165,099 | 2,476
E |  | 30.0% |  | 15,153 | 682 | 15,153 | 682
F |  | 50.0% |  | 19,682 | 1,476 | 19,682 | 1,476
G |  | 70.0% |  | 15,714 | 1,650 | 15,714 | 1,650
H |  | 100.0% |  | 120,077 | 18,011 | 120,077 | 18,011
Total |  |  |  | 1,308,553 | 26,297 | 1,308,553 | 26,297

|  |  |  |  | Bank |  | Consolidated
|  |  |  |  | 12/31/2020 |  | 12/31/2020
Risk Level |  | % Minimun Allowance Required |  | Assets | Allowance Required | Assets | Allowance Required
AA |  | 0.0% |  | 14,277 | - | 14,277 | -
A |  | 0.5% |  | 591,732 | 444 | 591,732 | 444
B |  | 1.0% |  | 527,579 | 791 | 527,579 | 791
C |  | 3.0% |  | 531,559 | 2,392 | 531,559 | 2,392
D |  | 10.0% |  | 262,383 | 3,936 | 262,383 | 3,936
E |  | 30.0% |  | 4,319 | 203 | 4,319 | 203
F |  | 50.0% |  | 1,437 | 108 | 1,437 | 108
G |  | 70.0% |  | - | - | - | -
H |  | 100.0% |  | 429 | 64 | 429 | 64
Total |  |  |  | 1,933,715 | 7,938 | 1,933,715 | 7,938

e) Changes in Allowance for Loan Losses

|  |  |  | Bank |  |  |  | Consolidated
|  | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2020 |  | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2020
Opening Balance |  | 21,835,445 |  | 18,661,967 |  | 25,067,489 |  | 21,408,092
Allowances Recognized |  | 12,580,038 |  | 13,216,424 |  | 15,356,108 |  | 16,476,170
Write-offs |  | (11,041,916) |  | (10,042,947) |  | (13,292,303) |  | (12,816,773)
Closing Balance |  | 23,373,567 |  | 21,835,444 |  | 27,131,294 |  | 25,067,489
Recoveries Credits |  | 3,005,852 |  | 2,416,248 |  | 3,422,116 |  | 2,787,491

f) Renegotiated Credits

|  |  |  | Bank |  |  |  | Consolidated
|  | 12/31/2021 |  | 12/31/2020 |  | 12/31/2021 |  | 12/31/2020
Renegotiated Credits |  | 20,005,822 |  | 18,197,875 |  | 23,634,268 |  | 22,987,914
Allowance for Loan Losses |  | (10,100,946) |  | (9,196,227) |  | (11,120,588) |  | (10,411,547)
Percentage of Coverage on Renegotiated Credits |  | 50.5% |  | 50.5% |  | 47.1% |  | 45.3%

g) Loan Portfolio Concentration

|  |  |  |  |  |  |  | Consolidated
|  |  |  | 12/31/2021 |  |  |  | 12/31/2020
Loan Portfolio and Credit Guarantees (1), Securities (2) and Derivatives Financial Instruments (3) | Risk |  | % |  | Risk |  | %
Largest Debtor |  | 6,767,732 |  | 1.4% |  | 6,782,322 |  | 1.3%
10 Largest |  | 40,864,829 |  | 7.5% |  | 33,571,246 |  | 6.5%
20 Largest |  | 60,535,018 |  | 11.2% |  | 54,105,883 |  | 10.5%
50 Largest |  | 93,411,357 |  | 17.6% |  | 89,753,598 |  | 17.4%
100 Largest |  | 124,364,929 |  | 23.1% |  | 119,028,823 |  | 23.1%

(1) Includes installments of credit to builders/developers.

(2) Refers to debentures, promissory notes and certificates of real estate receivables – CRI.

(3) Refers to credit of derivatives risk.

# 9. Foreign Exchange Portfolio

|  |  |  |  |  |  | Bank/Consolidated
|  |  |  |  | 12/31/2021 |  | 12/31/2020
Assets |  |  |  |  |  |  |
Rights to Foreign Exchange Sold |  |  |  |  | 25,885,822 |  | 52,142,905
Exchange Purchased Pending Settlement |  |  |  |  | 38,311,762 |  | 39,312,834
Advances in Local Currency |  |  |  |  | (138,651) |  | (187,033)
Income Receivable from Advances and Importing Financing |  |  |  | 131.244 |  | 150,513
Currency and Documents Term Foreign Currency |  |  |  |  | 2,752 |  | 19,325
Total |  |  |  |  | 64,192,929 |  | 91,438,544
Liabilities |  |  |  |  |  |  |
Exchange Sold Pending Settlement |  |  |  |  | 34,822,053 |  | 57,128,318
Foreign Exchange Purchased |  |  |  |  | 29,117,239 |  | 34,057,723
Advances on Foreign Exchange Contracts (Note 9.a) |  |  |  |  | (6,380,642) |  | (6,310,254)
Others |  |  |  |  | 141 |  | 172
Total |  |  |  |  | 57,558,791 |  | 84,875,959

Memorandum Accounts |  |  |
Outstanding Import Credits – Foreign Currency | 2,433,568 |  | 1,633,619
Confirmed Export Credits – Foreign Currency | 288,822 |  | 2,067,409

# 10. Other Financial Assets

a) Other Financial Assets

In 2021, due to better liquidity conditions observed in the market for electricity trading operations for certain maturities, management reclassified contracts maturing up to 2 years from level 3 to level 2 (note 32.f) and revisited the treatment accounting in relation to the electric energy commercialization contracts, which no longer include the amount of the "principal" and, therefore, only the adjustments to fair value and interest determined in these operations are recorded in equity accounts.

For better comparability purposes, the amounts of "principal" of energy trading operations recorded in equity accounts, on December 31, 2020, were reduced from the headings of "Other Financial Assets - Trading and Intermediation of Amounts - Operations with Assets Financial and Commodities to be Settled" and "Other Financial Liabilities - Trading and Intermediation of Amounts - Operations with Financial Assets and Commodities to be Settled" in the amount of R$2,623,106 (2019 - R$1,624,834), with corresponding impact on the total of assets and liabilities as of December 31, 2020. There was no change in the balance of shareholders' equity or income. The financial statements as of December 31, 2020, presented for comparison purposes, already include the aforementioned adjustments.

|  |  |  | Bank
|  | 12/31/2021 |  | 12/31/2020
Exchange Portfolio (Note 9) |  | 64,192,929 |  | 91,438,544
Trading and Intermediation of Values |  | 5,625,242 |  | 3,824,827
Interbank Accounts |  | 87,981,008 |  | 75,810,738
Receipts and Payments Pending Settlement |  | - |  | 728
Credits for Avals and Sureties Honored (Note 8.a) |  | 169,942 |  | 228,754
Total |  | 157,969,121 |  | 171,303,591
|  |  |  | Consolidated
|  | 12/31/2021 |  | 12/31/2020
Exchange Portfolio (Note 9) |  | 64,192,929 |  | 91,438,544
Trading and Intermediation of Values |  | 6,723,764 |  | 4,236,518
Interbank Accounts |  | 88,376,555 |  | 91,368,033
Receipts and Payments Pending Settlement |  | - |  | 728
Credits for Avals and Sureties Honored (Note 8.a) |  | 471,385 |  | 51,583
Total |  | 159,764,633 |  | 187,095,406

b) Securities Trading and Brokerage

|  |  | Bank |  |  |  | Consolidated
| 12/31/2021 |  | 12/31/2020 |  | 12/31/2021 |  | 12/31/2020
Assets |  |  |  |  |  |  |
Financial Assets and Pending Settlement Transactions | 1,521,217 |  | 175,179 |  | 1,897,317 |  | 392,395
Clearinghouse Transactions | 1,750 |  | 2,002 |  | 3,170 |  | 2,002
Debtors Pending Settlement | 39,216 |  | 25,078 |  | 718,223 |  | 197,542
Stock Exchanges - Guarantee Deposits | 3,095,211 |  | 2,915,264 |  | 3,099,913 |  | 2,919,758
Others (1) | 967,848 |  | 707,304 |  | 1,005,141 |  | 724,821
Total | 5,625,242 |  | 3,824,827 |  | 6,723,764 |  | 4,236,518
Liabilities |  |  |  |  |  |  |
Financial Assets and Pending Settlement Transactions | 2,940,343 |  | 303,266 |  | 3,247,435 |  | 486,200
Creditors Pending Settlement | 6,717 |  | 4,976 |  | 150,476 |  | 160,488
Creditors for Loan of Shares | - |  | - |  | 448,390 |  | 672,577
Clearinghouse Transactions | - |  | 13 |  | 332,350 |  | 41,213
Records and Settlement | 2,766 |  | 2,645 |  | 3,685 |  | 5,005
Others | - |  | 5,040 |  | 327 |  | 5,042
Total | 2,949,826 |  | 315,940 |  | 4,182,663 |  | 1,370,525

(1) Refers to deposits made as collateral for derivative transactions carried out with clients in the over-the-counter market.

# 11. Tax Assets and Liabilities

a) Tax Credits

a.1) Nature and Origin of Recorded Deferred Tax Assets

|  | Origins |  |  |  |  |  |  |  | Bank
|  |  |  |  |  | Balances on |  |  |  |  |  | Balances on
|  | 12/31/2021 |  | 12/31/2020 |  | 12/31/2020 |  | Recognition |  | Realization |  | 12/31/2021
Allowance for Loan Losses |  | 32,151,456 |  | 38,275,701 |  | 17,224,066 |  | 5,575,576 |  | (8,331,487) |  | 14,468,155
Reserve for Legal and Administrative Proceedings - Civil |  | 4,323,509 |  | 4,004,582 |  | 1,802,063 |  | 1,747,904 |  | (1,604,387) |  | 1,945,580
Reserve for Tax Risks and Legal Obligations |  | 3,689,060 |  | 3,580,550 |  | 1,574,966 |  | 93,630 |  | (44,800) |  | 1,623,796
Reserve for Legal and Administrative Proceedings - Labor |  | 5,587,123 |  | 5,345,668 |  | 2,405,551 |  | 872,451 |  | (763,796) |  | 2,514,206
Agio |  | 109,248 |  | 127,511 |  | 57,380 |  | 740 |  | (8,958) |  | 49,162
Adjustment to Fair Value of Trading Securities and Derivatives (1) | 8.081.267 |  | 4,643,314 |  | 2,208,244 |  | 1,592,361 |  | (2,237,727) |  | 1,562,878
Adjustment to Fair Value of Available-for-sale Securities and Cash Flow Hedge (1) | 8.727.582 |  | 414,355 |  | 197,057 |  | 1,927,652 |  | - |  | 2,124,709
Accrual for Pension Plan (2) |  | 1,769,948 |  | 1,223,801 |  | 1,363,434 |  | 187,421 |  | (754,379) |  | 796,476
Profit Sharing, Bonuses and Personnel Gratuities |  | 1,226,774 |  | 1,010,089 |  | 435,588 |  | 847,633 |  | (754,039) |  | 529,182
Other Temporary Provisions (3) |  | 6,935,677 |  | 6,661,588 |  | 2,898,461 |  | 184,201 |  | (59,812) |  | 3,022,850
Total Tax Credits on Temporary Differences |  | 72,601,644 |  | 65,287,159 |  | 30,166,810 |  | 13,029,569 |  | (14,559,385) |  | 28,636,994
Tax Losses and Negative Social Contribution Bases |  | 10,144,740 |  | 12,023,746 |  | 5,407,013 |  | - |  | (870,457) |  | 4,536,556
Social Contribution Tax - Executive Act 2,158/2001 |  | - |  | - |  | 175,158 |  | 3,130 |  | (178,288) |  | -
Balance of Recorded Deferred Tax Assets |  | 82,746,384 |  | 77,310,905 |  | 35,748,981 |  | 13,032,699 |  | (15,608,130) |  | 33,173,550
|  | Origins |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  | Balances on |  |  |  |  |  | Balances on
|  | 12/31/2021 |  | 12/31/2020 |  | 12/31/2020 |  | Recognition |  | Realization |  | 12/31/2021
Allowance for Loan Losses |  | 38,547,733 |  | 43,906,297 |  | 19,481,029 |  | 6,747,676 |  | (9,192,314) |  | 17,036,391
Reserve for Legal and Administrative Proceedings - Civil |  | 4,590,834 |  | 4,243,713 |  | 1,893,379 |  | 1,826,363 |  | (1,673,697) |  | 2,046,045
Reserve for Tax Risks and Legal Obligations |  | 6,028,067 |  | 5,923,273 |  | 2,482,770 |  | 122,966 |  | (68,007) |  | 2,537,729
Reserve for Legal and Administrative Proceedings - Labor |  | 5,972,720 |  | 5,737,510 |  | 2,553,076 |  | 908,062 |  | (805,267) |  | 2,655,871
Agio |  | 109,248 |  | 127,511 |  | 57,380 |  | 740 |  | (8,958) |  | 49,162
Adjustment to Fair Value of Trading Securities and Derivatives (1) | 8,196,778 |  | 4,742,033 |  | 2,215,268 |  | 1,632,119 |  | (2,238,339) |  | 1,609,048
Adjustment to Fair Value of Available-for-sale Securities and Cash Flow Hedge (1) | 10,748,333 |  | 657,120 |  | 255,286 |  | 2,308,047 |  | (92,014) |  | 2,471,319
Accrual for Pension Plan (2) |  | 1,793,709 |  | 1,264,592 |  | 1,377,669 |  | 187,421 |  | (760,535) |  | 804,555
Profit Sharing, Bonuses and Personnel Gratuities |  | 1,432,705 |  | 1,198,427 |  | 492,880 |  | 924,473 |  | (817,585) |  | 599,768
Other Temporary Provisions (3) |  | 7,602,125 |  | 7,594,777 |  | 3,233,166 |  | 301,247 |  | (142,215) |  | 3,392,198
Total Tax Credits on Temporary Differences |  | 85,022,252 |  | 75,395,253 |  | 34,041,903 |  | 14,959,114 |  | (15,798,931) |  | 33,202,086
Tax Losses and Negative Social Contribution Bases |  | 10,295,706 |  | 12,425,981 |  | 5,703,773 |  | 6,741 |  | (954,530) |  | 4,755,984
Social Contribution Tax - Executive Act 2,158/2001 |  | - |  | - |  | 175,158 |  | 3,131 |  | (178,289) |  | -
Balance of Recorded Deferred Tax Assets |  | 95,317,958 |  | 87,821,234 |  | 39,920,834 |  | 14,968,986 |  | (16,931,750) |  | 37,958,070

(1) Includes deferred tax assets of IRPJ, CSLL, PIS and COFINS.

(2) Includes deferred tax assets of IRPJ and CSLL, on adjustments to the employee benefit plan.

(3) Mainly composed of provisions of an administrative nature.

(4) Includes the effects of the change in the CSLL rate.

On December 31, 2021, unrecorded tax credits totaled R$90,574 (12/31/2020 – R$41,418) in the Consolidated.

The accounting record of Deferred Tax Assets in Santander Brasil's financial statements was made at the rates applicable to the expected period of their realization and is based on the projection of future results and on a technical study prepared pursuant to CMN Resolution No. 4,842/2020 and BCB Resolution No. 15.

a.2) Expected Realization of Recorded Tax Credits

|  |  |  |  |  |  |  |  |  |  |  | Bank
|  |  |  |  |  |  |  |  |  |  |  | 12/31/2021
|  | Temporary Differences |  | Tax Loss - Carryforwards |  |  |  | Total
Year |  | IRPJ |  | CSLL |  | PIS/COFINS |  |  |  | Recorded
2022 |  | 4,808,514 |  | 3,891,280 |  | 111,682 |  | 1,847,331 |  |  | 10,658,807
2023 |  | 4,997,561 |  | 3,964,634 |  | 111,682 |  | 1,739,765 |  |  | 10,813,642
2024 |  | 4,192,163 |  | 3,379,905 |  | 111,682 |  | 949,460 |  |  | 8,633,210
2025 |  | 894,161 |  | 715,315 |  | 111,682 |  | - |  |  | 1,721,158
2026 |  | 331,549 |  | 265,240 |  | - |  | - |  |  | 596,789
2027 to 2031 |  | 403,686 |  | 346,258 |  | - |  | - |  |  | 749,944
Total |  | 15,627,634 |  | 12,562,632 |  | 446,728 |  | 4,536,556 |  |  | 33,173,550
|  |  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  |  |  |  |  |  | 12/31/2021
|  | Temporary Differences |  | Tax Loss - Carryforwards |  |  | Total
Year |  | IRPJ |  | CSLL |  | PIS/COFINS |  |  |  | Recorded
2022 |  | 5,665,977 |  | 4,334,260 |  | 118,859 |  | 1,919,025 |  |  | 12,038,121
2023 |  | 5,987,381 |  | 4,539,195 |  | 118,859 |  | 1,782,080 |  |  | 12,427,515
2024 |  | 4,862,966 |  | 3,786,212 |  | 118,859 |  | 985,945 |  |  | 9,753,982
2025 |  | 1,003,715 |  | 781,625 |  | 118,794 |  | 40,732 |  |  | 1,944,866
2026 |  | 571,291 |  | 409,199 |  | - |  | 7,063 |  |  | 987,553
2027 to 2031 |  | 416,722 |  | 368,172 |  | - |  | 21,139 |  |  | 806,033
Total |  | 18,508,052 |  | 14,218,663 |  | 475,371 |  | 4,755,984 |  |  | 37,958,070

Due to the differences between accounting, tax and corporate criteria, the expected realization of deferred tax assets should not be taken as an indication of the value of future results.

Based on CMN Resolution 4818/2020 and BCB Resolution 2/2020, Tax Credits must be fully presented in the long term, for balance sheet purposes.

a.3) Present Value of Deferred Tax Assets

The present value of deferred tax assets recorded is R$31,575,967 (12/31/2020 - R$33,863,523) in the Bank and R$36,110,693 (12/31/2020 - R$37,749,808) in the Consolidated, calculated in accordance with the expected realization of temporary differences, tax loss, negative CSLL bases, Social Contribution 18% - MP 2,158/2001 and the average funding rate, projected for the corresponding periods.

b) Other Liabilities - Tax and Social Security

|  |  | Bank |  |  |  | Consolidated
| 12/31/2021 |  | 12/31/2020 |  | 12/31/2021 |  | 12/31/2020
Deferred Tax Liabilities | 2,030,169 |  | 4,433,050 |  | 2,708,477 |  | 5,042,170
Provision for Taxes and Contributions on Income | 174,588 |  | 22,562 |  | 1,339,495 |  | 214,506
Taxes Payable | 765,882 |  | 933,222 |  | 1,034,873 |  | 2,051,704
Total | 2,970,639 |  | 5,388,834 |  | 5,082,845 |  | 7,308,380

b.1) Nature and Origin of Deferred Tax Liabilities

|  | Origins |  |  |  |  |  |  |  | Bank
|  |  |  |  |  | Balances on |  |  |  |  |  | Balances on
|  | 12/31/2021 |  | 12/31/2020 |  | 12/31/2020 |  | Recognition |  | Realization |  | 12/31/2021
Adjustment to Fair Value of Trading Securities and Derivatives (1) | 638,141 |  | 10,099,545 |  | 1,626,237 |  | 4,614,952 |  | (6,085,836) |  | 155,353
Adjustment to Fair Value of Available-for-Sale Securities and Cash Flow Hedge (1) | 7,259,029 |  | 16,595,256 |  | 2,672,182 |  | 50,271 |  | (955,259) |  | 1,767,194
Excess Depreciation of Leased Assets |  | 21,438 |  | 21,619 |  | 5,405 |  | - |  | (45) |  | 5,360
Others |  | 227,660 |  | 287,581 |  | 129,226 |  | 1,151 |  | (28,115) |  | 102,262
Total |  | 8,146,268 |  | 27,004,001 |  | 4,433,050 |  | 4,666,374 |  | (7,069,255) |  | 2,030,169
|  | Origins |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  | Balances on |  |  |  |  |  | Balances on
|  | 12/31/2021 |  | 12/31/2020 |  | 12/31/2020 |  | Recognition |  | Realization |  | 12/31/2021
Adjustment to Fair Value of Trading Securities and Derivatives (1) | 1,630,907 |  | 10,524,275 |  | 1,826,233 |  | 4,695,680 |  | (6,138,215) |  | 383,698
Adjustment to Fair Value of Available-for-Sale Securities and Cash Flow Hedge (1) | 7,646,179 |  | 16,871,322 |  | 2,672,182 |  | 147,817 |  | (1,031,545) |  | 1,788,454
Excess Depreciation of Leased Assets |  | 1,343,391 |  | 1,287,747 |  | 318,336 |  | 67,426 |  | (49,978) |  | 335,784
Others |  | 476,538 |  | 534,252 |  | 225,419 |  | 12,763 |  | (37,641) |  | 200,541
Total |  | 11,097,015 |  | 29,217,596 |  | 5,042,170 |  | 4,923,686 |  | (7,257,379) |  | 2,708,477

(1) Includes IRPJ, CSLL, PIS and Cofins

b.2) Expected Realization of Deferred Tax Liabilities

|  |  |  |  |  |  |  | Bank
|  |  |  |  |  |  |  | 12/31/2021
|  | Temporary Differences |  | Total
Year |  | IRPJ |  | CSLL |  | PIS/COFINS |  | Recorded
2022 |  | 248,390 |  | 197,264 |  | 46,995 |  | 492,649
2023 |  | 248,391 |  | 197,264 |  | 46,995 |  | 492,650
2024 |  | 248,391 |  | 197,264 |  | 46,995 |  | 492,650
2025 |  | 246,604 |  | 197,264 |  | 46,995 |  | 490,863
2026 |  | 5,691 |  | 4,535 |  | - |  | 10,226
2027 to 2031 |  | 28,457 |  | 22,674 |  | - |  | 51,131
Total |  | 1,025,924 |  | 816,265 |  | 187,980 |  | 2,030,169
|  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  |  |  | 12/31/2021
|  | Temporary Differences |  | Total
Year |  | IRPJ |  | CSLL |  | PIS/COFINS |  | Recorded
2022 |  | 441,723 |  | 228,756 |  | 55,991 |  | 726,470
2023 |  | 441,723 |  | 228,756 |  | 55,991 |  | 726,470
2024 |  | 326,146 |  | 228,756 |  | 55,991 |  | 610,893
2025 |  | 292,945 |  | 208,645 |  | 50,464 |  | 552,054
2026 |  | 27,294 |  | 5,305 |  | - |  | 32,599
2027 to 2031 |  | 34,835 |  | 25,156 |  | - |  | 59,991
Total |  | 1,564,666 |  | 925,374 |  | 218,437 |  | 2,708,477

c) Income Tax and Social Contribution

|  |  |  | Bank |  |  |  | Consolidated
|  | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2020 |  | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2020
Income Before Taxes on Income and Profit Sharing |  | 21,216,882 |  | 7,752,049 |  | 23,671,563 |  | 8,921,237
Profit Sharing (1) |  | (1,860,596) |  | (1,668,086) |  | (2,059,673) |  | (1,857,937)
Unrealized Income |  | - |  | - |  | (142) |  | 77,310
Income Before Taxes |  | 19,356,286 |  | 6,083,963 |  | 21,611,748 |  | 7,140,610
Total Income and Social Contribution Tax at the Rates of 25% and 25%, Respectively (3) | (9.678.143) |  | (2,737,783) |  | (10,805,874) |  | (3,213,275)
Result of Equity in Affiliates and Subsidiaries (2) |  | 1,838,324 |  | 1,353,205 |  | 34,697 |  | 23,273
Non-Deductible Expenses Net of Non-Taxable Income |  | (221,023) |  | (55,549) |  | (230,261) |  | (56,651)
Exchange Variation of Investments Abroad |  | 768,902 |  | 6,831,483 |  | 768,902 |  | 6,831,484
IRPJ and CSLL on Temporary Differences and Tax Losses from Previous Years | 264.650 |  | 523,507 |  | 264,191 |  | 551,983
Interests on Equity |  | 1,810,797 |  | 1,472,877 |  | 1,854,422 |  | 1,502,888
Effect of the CSLL Rate Increase (3) |  | 545,091 |  | - |  | 1,223,462 |  | 296,112
Other Adjustments CSLL 5% (4) |  | 8,810 |  | 56,791 |  | (26,958) |  | 63,642
Other Adjustments, including Profit available Abroad |  | 301,814 |  | 527,655 |  | 414,194 |  | 540,011
Income and Social Contribution Taxes |  | (4,360,778) |  | 7,972,186 |  | (6,503,225) |  | 6,539,467
Current Taxes |  | (2,161,881) |  | 681,355 |  | (4,653,737) |  | (2,354,632)
Income Tax and Social Contribution for the Period |  | (2,161,881) |  | 681,355 |  | (4,653,737) |  | (2,354,632)
Deferred Taxes |  | (1,328,439) |  | 2,257,983 |  | (895,292) |  | 3,972,828
Constitution/Realization in the period on temporary additions and exclusions - Result | (1.328.439) |  | (2,257,983) |  | (895,292) |  | 3,972,828
Use of opening balances of: |  | (870,458) |  | (187,082) |  | (953,457) |  | (298,659)
Negative basis of Social Contribution |  | (375,801) |  | (187,082) |  | (380,409) |  | (236,671)
Tax Loss |  | (494,657) |  | - |  | (573,048) |  | (61,988)
Constitution in the Period on: |  | - |  | 5,219,930 |  | (739) |  | 5,219,930
Negative basis of Social Contribution |  | - |  | 2,216,034 |  | (284) |  | 2,216,034
Tax Loss |  | - |  | 3,003,896 |  | (455) |  | 3,003,896
Total of Deferred Taxes |  | (2,198,897) |  | 7,290,831 |  | (1,849,488) |  | 8,894,099
Income and Social Contribution Taxes |  | (4,360,778) |  | 7,972,186 |  | (6,503,225) |  | 6,539,467

(1) The calculation basis is net income, after income tax and social contribution.

(2) Interest on equity received and receivable is not included in the result of interests in affiliates and subsidiaries.

(3) Effect of the rate differential for the companies, whose social contribution rate is 9% and 20%.

(4) Increase in the CSLL rate, as of July 2021, until December 31, 2021.

Exchange Hedge of Grand Cayman Agency, Luxembourg Agency

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 financing foreign trade and working capital (Note 13).

To cover exposure to exchange variations, the Bank uses derivatives and funding. According to Brazilian tax rules, gains or losses arising from the impact of the appreciation or devaluation of the Real on foreign investments were not taxable, but as of January 2021 they became taxable or deductible for IR/CSLL purposes, while that the gains or losses on derivatives used as hedging are taxable or deductible. The purpose of these derivatives is to protect net income after taxes.

Law 14,031, of July 28, 2020, determined that as of January 2021, 50% of the exchange rate variation of investments abroad must be computed in the determination of the taxable income and in the calculation basis of the Social Contribution on Net Income (CSLL) of the investing legal entity domiciled in the country. As of 2022, the exchange variation will be fully computed on the tax bases of IRPJ and CSLL.

The different tax treatment of such exchange differences results in volatility in “Operating Income before Taxation” and in the “Income Taxes” caption. Below are the effects of the transactions carried out, as well as the total effect of the exchange hedge for the periods ended December 31, 2021, and 2020:

R$ Millions |  | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2020
Financial Operations |  |  |  |
Result generated by the exchange rate variations on the Bank's investment in the Cayman and EFC Agency | 3,862 |  | 16,792
Result generated by derivative contracts used as hedge |  | (6,374) |  | (30,375)
Tax Expenses |  |  |  |
Tax effect of derivative contracts used as hedge - PIS/COFINS |  | 275 |  | 312
Income Tax and Social Contribution |  |  |  |
Tax effect of derivative contracts used as hedge - IR/CS |  | 2,237 |  | 13,271

(1) Banco Santander maintained an investment in a subsidiary abroad called Santander Brasil, Establecimiento Financiero de Credito, S.A., which was dissolved and liquidated on December 15, 2020.

d) Tax Expenses

|  | Bank |  | Consolidated
| 01/01 to 12/31/2021 | 01/01 to 12/31/2020 | 01/01 to 12/31/2021 | 01/01 to 12/31/2020
Cofins (Contribution for Social Security Financing) (1) | 2,101,852 | 1,705,772 | 2,867,884 | 2,476,433
ISS (Tax on Services) | 639,152 | 586,809 | 825,008 | 764,993
PIS (Tax on Revenue) (1) | 341,551 | 277,187 | 488,354 | 421,427
Others (2) | 289,077 | 271,578 | 349,781 | 317,621
Total | 3,371,632 | 2,841,346 | 4,531,027 | 3,980,474

# 12. Other Assets

|  |  | Bank |  |  |  | Consolidated
| 12/31/2021 |  | 12/31/2020 |  | 12/31/2021 |  | 12/31/2020
Notes and Credits Receivable (Note 8.a) |  |  |  |  |  |  |
Credit Cards | 38,697,565 |  | 31,861,356 |  | 38,697,565 |  | 31,861,356
Receivables (1) | 27,228,813 |  | 28,706,517 |  | 31,770,716 |  | 32,476,841
Escrow Deposits for: |  |  |  |  |  |  |
Tax Claims | 5,481,136 |  | 5,756,068 |  | 7,258,166 |  | 7,507,557
Labor Claims | 1,648,343 |  | 1,978,893 |  | 1,752,187 |  | 2,144,435
Others - Civil | 1,096,701 |  | 1,108,009 |  | 1,286,274 |  | 1,330,431
Contract Guarantees - Former Controlling Stockholders (Note 20.f) | 496 |  | 496 |  | 496 |  | 496
Reimbursable Payments | 178,077 |  | 164,809 |  | 192,562 |  | 223,676
Salary Advances/Others | 199,212 |  | 120,339 |  | 856,579 |  | 263,997
Employee Benefit Plan (Note 29.a) | 231,100 |  | 291,012 |  | 287,809 |  | 361,149
Debtors for Purchase of Assets (Note 8.a) | 551,756 |  | 622,564 |  | 602,780 |  | 687,565
Receivable from Affiliates (Note 22.e) | 38,827 |  | 19,049 |  | 242,217 |  | 18,195
Income Receivable | 3,077,494 |  | 2,546,048 |  | 3,110,771 |  | 2,356,322
Other Values and Assets | 1,361,411 |  | 1,809,180 |  | 1,552,099 |  | 2,131,653
Others | 2,081,481 |  | 1,291,091 |  | 2,755,980 |  | 3,590,911
Total | 81,872,412 |  | 76,275,431 |  | 90,366,201 |  | 84,954,584

(1) It consists of operations with credit assignment characteristics substantially composed of "Confirming" operations with companies’ subject to credit risk and analysis of loan losses by segment in accordance with the Bank risk policies.

# 13. Dependences Information and Foreign Subsidiary

Branches:

Grand Cayman Branch (Cayman Branch)

The Grand Cayman Branch is licensed under the Banking and Trust Company Act and is duly registered as a Foreign Company with the Grand Cayman, Cayman Islands Corporate Registry Officer. The agency, therefore, is duly authorized to carry out banking business in the Cayman Islands, and is currently involved in fundraising business in the international banking and capital market to provide lines of credit to Banco Santander, which are then extended to the Bank's customers. Santander for working capital and foreign trade financing. It also takes deposits in foreign currency from corporate and individual clients and grants credit to Brazilian and foreign clients, primarily to support commercial operations with Brazil.

Luxembourg

On June 9, 2017, Banco Santander obtained authorization from Bacen to set up a branch in Luxembourg, with outstanding capital of US$1 billion, with the objective of complementing the foreign trade strategy for corporate clients (large Brazilian companies and their operations abroad) and offer financial products and services through an offshore entity that is not established in a jurisdiction with favored taxation and that allows the expansion of the funding capacity. The opening of the branch was authorized by the Minister of Finance of Luxembourg on March 5, 2018. On April 3, 2018, after the Cayman Branch's capital was reduced by an equivalent amount, the amount of US$1 billion was allocated to the capital. seconded company from the Luxembourg agency.

Subsidiary:

Banco Santander had a subsidiary in Spain, Santander Brasil, Establecimiento Financiero de Credito, SA (Santander Brasil EFC), to complement the foreign trade strategy for corporate clients (large Brazilian companies and their operations abroad) and offer products and services through an offshore entity that is not established in a tax-favorable jurisdiction.

On November 12, 2020, by decision of its sole partner, the dissolution and liquidation of Santander Brasil, Establecimiento Financiero de Credito, S.A. (which had its corporate name changed to Santander Brasil, S.A.U.) was approved. The capital invested abroad was repatriated in November 2020. The company's dissolution and liquidation deed were registered in the Madrid Registry with effect from December 15, 2020. These activities are now carried out by the Bank's branch in Luxembourg.

The summarized financial positions of the branches and subsidiary abroad, converted at the exchange rate in effect on the balance sheet date included in the financial statements, comprise the following positions (without eliminating transactions with affiliates):

| Grand Cayman Branch (3) |  | Luxembourg Branch (3) |  | Santander Brasil EFC (3)
| 12/31/2021 |  | 12/31/2020 |  | 12/31/2021 |  | 12/31/2020 |  | 12/31/2021 |  | 12/31/2020
Assets | 158,796,211 |  | 160,340,976 |  | 81,914,595 |  | 37,555,040 |  | - |  | 1,303
Current and Long-term Assets | 158,796,179 |  | 160,340,976 |  | 81,914,414 |  | 37,554,771 |  | - |  | 1,303
Cash | 9,127,129 |  | 10,992,918 |  | 1,630,327 |  | 1,116,505 |  | - |  | 1,253
Interbank Investments | 26,583,540 |  | 38,123,942 |  | 13,138,145 |  | 8,542,030 |  | - |  | -
Securities and Derivatives Financial Instruments | 89,178,436 |  | 77,537,745 |  | 14,433,434 |  | 1,872,724 |  | - |  | -
Lending Operations (1) | 18,271,074 |  | 21,216,364 |  | 46,639,821 |  | 24,813,536 |  | - |  | -
Foreign Exchange Portfolio | 11,128,060 |  | 6,800,895 |  | 5,473,283 |  | 884,473 |  | - |  | -
Others | 4,507,940 |  | 5,669,112 |  | 599,404 |  | 325,503 |  | - |  | 50
Permanent Assets | 32 |  | - |  | 181 |  | 269 |  | - |  | -
Liabilities | 158,796,211 |  | 160,340,976 |  | 81,914,595 |  | 37,555,040 |  | - |  | 1,303
Current and Long-term Liabilities | 120,638,194 |  | 108,823,123 |  | 74,024,804 |  | 30,939,233 |  | - |  | 18
Deposits and Money Market Funding | 30,505,351 |  | 31,461,468 |  | 7,973,185 |  | 4,161,763 |  | - |  | -
Funds from Acceptance and Issuance of Securities | 20,395,593 |  | 19,454,058 |  | 36,365,115 |  | 10,784,221 |  | - |  | -
Debt Instruments Eligible to Compose Capital | 14,088,607 |  | 13,119,659 |  | - |  | - |  | - |  | -
Borrowings (2) | 31,320,740 |  | 26,090,092 |  | 23,239,576 |  | 14,070,809 |  | - |  | -
Foreign Exchange Portfolio | 11,050,587 |  | 6,869,559 |  | 5,480,439 |  | 908,932 |  | - |  | -
Others | 13,277,316 |  | 11,828,287 |  | 966,489 |  | 1,013,508 |  | - |  | 18
Deferred Income | 30,309 |  | 171 |  | 11,693 |  | 13,339 |  | - |  | -
Stockholders' Equity | 38,127,708 |  | 51,517,682 |  | 7,878,098 |  | 6,602,468 |  | - |  | 1,285
| 01/01 to 12/31/2021 |  | 01/01 to 12/31/2020 |  | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2020 |  | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2020
Net Income | 2,206,018 |  | 2,933,240 |  | 715,212 |  | 804,660 |  | - |  | (14,762)

(1) Refers mainly to lending and export financing operations.

(2) Borrowings abroad regarding financing lines to exports and imports and other lines of credit.

(3) The functional currency is Real.

# 14. Investments in Affiliates and Subsidiaries Subsidiary

a) Consolidation Perimeter

|  |  | Quantity of Shares or Quotas Owned (in Thousands) |  |  |  | 12/31/2021
Investments |  | Activity | Common Shares and Quotas | Preferred Shares |  | Direct Participation |  | Participation
Controlled by Banco Santander |  |  |  |  |  |  |  |
Atual Serviços de Recuperação de Créditos e Meios Digitais S.A. | Recovery of Defaulted Credits | 2,142,011 | - |  | 100.00% |  | 100.00%
Aymoré Crédito, Financiamento e Investimento S.A. (Aymoré CFI) | Financial | 2,877 | - |  | 100.00% |  | 100.00%
Banco RCI Brasil S.A. |  | Bank | 81 | 81 |  | 39.89% |  | 39.89%
BEN Benefícios e Serviços S.A. (BEN Benefícios) |  | Other Activities | 90,000 | - |  | 100.00% |  | 100.00%
Esfera Fidelidade S.A. |  | Other Activities | 10,001 | - |  | 100.00% |  | 100.00%
GIRA - Gestão Integrada de Recebíveis do Agronegócio S.A. |  | Tecnology | 381 | - |  | 80.00% |  | 80.00%
Rojo Entretenimento S.A. |  | Other Activities | 7,417 | - |  | 94.60% |  | 94.60%
Sanb Promotora de Vendas e Cobrança Ltda. |  | Other Activities | 30,988 | - |  | 100.00% |  | 100.00%
Sancap Investimentos e Participações S.A. (Sancap) |  | Holding | 23,538,159 | - |  | 100.00% |  | 100.00%
Santander Brasil Administradora de Consórcio Ltda. (Santander Brasil Consórcio) | Buying Club | 436,441 | - |  | 100.00% |  | 100.00%
Santander Corretora de Títulos e Valores Mobiliários S.A. (Santander CCVM) | Broker | 14,067,640 | 14,067,640 |  | 99.99% |  | 100.00%
Santander Corretora de Seguros, Investimentos e Serviços S.A. (Santander Corretora de Seguros) | Other Activities | 7,184 | - |  | 100.00% |  | 100.00%
Santander Holding Imobiliária S.A. |  | Holding | 558,601 | - |  | 100.00% |  | 100.00%
Santander Leasing S.A. Arrendamento Mercantil (Santander Leasing) | Leasing | 164 | - |  | 100.00% |  | 100.00%

Santander Tecnologia e Inovação Ltda. |  | Other Activities | 196,979 | - |  | 100.00% |  | 100.00%
Paytec Tecnologia em Pagamentos Ltda. |  | Other Activities | 348 | - |  | 100.00% |  | 100.00%
SX Negócios Ltda. |  | Other Activities | 75,050 | - |  | 100.00% |  | 100.00%
Controlled by Aymoré CFI |  |  |  |  |  |  |  |
Bank PSA |  | Bank | 105 | - |  | 0.00% |  | 50.00%
Bank Hyundai Capital Brasil S.A. |  | Bank | 150,000 | - |  | 0.00% |  | 50.00%
Solution 4Fleet Consultoria Empresarial S.A. |  | Other Activities | 328 | - |  | 0.00% |  | 80.00%
Controlled by Santander Leasing |  |  |  |  |  |  |  |
Bank Bandepe S.A. |  | Bank | 3,589 | - |  | 0.00% |  | 100.00%
PI Distribuidora de Títulos e Valores Mobiliários S.A. |  | Leasing | 348 | - |  | 0.00% |  | 100.00%
Controlled by Sancap |  |  |  |  |  |  |  |
Santander Capitalização S.A. |  | Capitalization | 64,615 | - |  | 0.00% |  | 100.00%
Evidence Previdência S.A. |  | Private Pension | 42,819,564 | - |  | 0.00% |  | 100.00%
Controlled by Santander Holding Imobiliária S.A. |  |  |  |  |  |  |  |
Summer Empreendimentos Ltda. |  | Other Activities | 17,084 | - |  | 0.00% |  | 100.00%
Apê11 Tecnologia e Negócios Imobiliários S.A. |  | Other Activities | 3,808 | - |  | 0.00% |  | 90.00%
Controlled by Atual Serviços de Recuperação de Créditos e Meios Digitais S.A. |  |  |  |  |  |
Return Capital Serviços de Recuperação de Créditos S.A. |  | Collection and Recover of Credit Management | 200 | - |  | 0.00% |  | 100.00%
Liderança Serviços Especializados em Cobranças Ltda. |  | Collection and Recover of Credit Management | 250 | - |  | 0.00% |  | 100.00%
Controlled by Paytec Tecnologia em Pagamentos Ltda. |  |  |  |  |  |  |  |
Paytec Logística e Armazém Ltda. |  | Other Activities | 100 | - |  | 0.00% |  | 100.00%
Controlled by PI Distribuidora de Títulos e Valores Mobiliários S.A. |  |  |  |  |  |  |  |
Toro Corretora de Títulos e Valores Mobiliários Ltda. |  | Broker | 19,140 | - |  | 0.00% |  | 60.00%
Controlled by Toro Corretora de Títulos de Valores Mobiliários Ltda |  |  |  |  |  |  |  |
Toro Investimentos S.A. |  | Broker | 98,400 | - |  | 0.00% |  | 100.00%
Jointly Controlled Companies by Sancap |  |  |  |  |  |  |  |
Santander Auto S.A. |  | Other Activities | 22,452 | - |  | 0.00% |  | 50.00%
|  |  | Quantity of Shares or Quotas Owned (in Thousands) |  |  |  | 12/31/2021
Investments |  | Activity | Common Shares and Quotas | Preferred Shares |  | Direct Participation |  | Participation
Jointly Controlled Companies by Banco Santander |  |  |  |  |  |  |  |
Estruturadora Brasileira de Projetos S.A. (EBP) |  | Other Activities | 5,076 | 1,736 |  | 11.11% |  | 11.11%
Gestora de Inteligência de Crédito S.A. (Gestora de Crédito) |  | Credit Bureau | 5,090 | 4,809 |  | 19.45% |  | 19.45%
Campo Grande Empreendimentos Ltda. |  | Other Activities | 255 | - |  | 25.32% |  | 25.32%
Jointly Controlled Companies by Santander Corretora de Seguros |  |  |  |  |  |
Webmotors S.A. |  | Other Activities | 425,126,827 | - |  | 0.00% |  | 70.00%
Tecnologia Bancária S.A. (TecBan) |  | Other Activities | 743,944 | 68,771 |  | 0.00% |  | 18.98%
PSA Corretora de Seguros e Serviços Ltda. (PSA Corretora de Seguros) | Insurance Broker | 450 | - |  | 0.00% |  | 50.00%
Hyundai Corretora de Seguros Ltda. |  | Insurance Broker | 1,000 | - |  | 0.00% |  | 50.00%
Jointly Controlled Companies by Webmotors S.A. |  |  |  |  |  |  |  |
Loop Gestão de Pátios S.A. (Loop) |  | Other Activities | 23,243 | - |  | 0.00% |  | 51.00%
Car10 Tecnologia e Informação S.A. |  | Other Activities | 6,591 | - |  | 0.00% |  | 66.67%
Jointly Controlled Companies by TecBan |  |  |  |  |  |  |  |
Tbnet Comércio, Locação e Administração Ltda. (Tbnet) |  | Other Activities | 542,004 | - |  | 0.00% |  | 100.00%
Jointly Controlled Companies by Tebnet |  |  |  |  |  |  |  |
Tbforte Segurança e Transporte de Valores Ltda. (Tbforte) |  | Other Activities | 517,505 | - |  | 0.00% |  | 100.00%

Consolidated Investment Funds

· Santander Investment Fund Amazonas Multimarket Private Credit for Investment Abroad (Santander FI Amazonas);

· Santander Investment Fund Diamantina Multimercado Private Credit for Investment Abroad (Santander FI Diamantina);

· Santander Investment Fund Guarujá Multimarket Private Credit for Investment Abroad (Santander FI Guarujá);

· Santander Unix Multimercado Credit Privado Investment Fund (Santander FI Unix);

· Santander Investment Fund SBAC Referenced DI Credit Privado (Santander FI SBAC);

· Santander Paraty QIF PLC (Santander Paraty) (4);

· Sale of Credit Rights Investment Fund Vehicles (Sale of FIDC Vehicles) (1);

· RN Brasil Credit Rights Investment Fund - Vehicle Financing (FI RN Brasil - Vehicle Financing) (2);

· Prime 16 – Real Estate Investment Fund (current denomination of BRL V - Real Estate Investment Fund - FII) (3);

· Santander FI Hedge Strategies Fund (Santander FI Hedge Strategies) (4);

· NPL Ipanema VI Multisegment Credit Rights Investment Fund - Non-Standardized (Ipanema NPL VI Investment Fund) (5);

· Santander Hermes Multimercado Private Credit Infrastructure Investment Fund (6);

· Wholesale Credit Rights Investment Fund – Non-Standardized (7);

· Current - Multimarket Investment Fund for Private Investment abroad (8); and

· Verbena FCVS - Receivables Investment Fund (9).

(1) Renault automaker (an entity not belonging to the Santander Conglomerate) sells its trade bills to the Fund. This Fund exclusively purchases Renault automaker duplicates. In turn, Banco RCI Brasil S.A. holds 100% of its subordinated shares.

(2) Banco RCI Brasil S.A. sells receivables (CDC Portfolio) to FI RN Brasil - Vehicle Financing. Senior shares have only one investor. Banco RCI Brasil S.A. holds 100% of the subordinated shares.

(3) Banco Santander was the creditor of certain overdue credit operations that had real estate as collateral. The operation to recover these credits consists in the contribution of properties as guarantee to the capital of the Real Estate Investment Fund and the consequent transfer of the Fund's shares to Banco Santander, upon payment of the aforementioned credit operations.

(4) Banco Santander, through its subsidiaries, holds the risks and benefits of Santander Paraty and the Subfund Santander FI Hedge Strategies, based in Ireland, and both are fully consolidated in its Individual and Consolidated Condensed Interim Financial Statements. Santander Paraty does not have its own equity position, and all records come from the financial position of Santander FI Hedge Strategies.

(5) Refers to a structure where Banco Santander sold certain credit operations, which had already been transferred to losses (operations overdue for more than 360 days) to this fund. Atual Serviços de Recovery de Créditos e Meios Digitais S.A. (current company name of Atual Companhia Securitizadora de Créditos Financeiros), a company controlled by Banco Santander, holds 100% of the shares in this fund.

(6) This fund was consolidated in December 2018 and is controlled through Aymoré Crédito Financiamento e Investimento Ltda.

(7) This fund started to be consolidated in June 2019 and is controlled through Atual Serviços de Recovery de Credits e Meios Digitais S.A.

(8) This fund started to be consolidated in August 2020 and is controlled through Atual Serviços de Recovery de Créditos e Meios Digitais S.A.

(9) This fund was consolidated in February 2021, controlled by Banco Santander, which holds 100% of the shares in this fund.

b) Composition of Investments

|  |  |  |  |  |  |  |  |  | Bank |
|  | Adjusted Stockholders' Equity |  | Net Income (Loss) Adjusted |  | Investments Value |  | Equity Accounting Results |
|  | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2021 |  | 12/31/2020 |  | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2020 |
Controlled by Banco Santander |  |  |  |  |  |  |  |  |  |  |  |  |
Santander Leasing |  | 11,172,028 |  | 372,551 |  | 11,172,028 |  | 4,583,567 |  | 323,537 |  | 61,901 |
Banco Bandepe S.A. |  | - |  | - |  | - |  | 5,369,488 |  | 36,530 |  | 90,883 |
Santander Brasil EFC (1) |  | - |  | - |  | - |  | 41,636 |  | (35,574) |  | (31,895) |
Santander Corretora de Seguros |  | 4,604,407 |  | 1,048,878 |  | 4,609,417 |  | 3,575,295 |  | 1,048,878 |  | 570,340 |
Getnet S.A. |  | - |  | - |  | - |  | 2,071,772 |  | 56,220 |  | 289,960 |
Goodwill on the Acquisition of Residual Interest of Getnet S.A. | - |  | - |  | - |  | 949,173 |  | - |  | - |
Atual Serviços de Recuperação de Créditos e Meios Digitais S.A. | 2.690.379 |  | 97,713 |  | 2,690,379 |  | 1,740,057 |  | 116,249 |  | 88,849 |
Aymoré CFI |  | 2,305,203 |  | 1,012,268 |  | 2,305,203 |  | 1,542,259 |  | 1,012,268 |  | 743,312 |
Sancap |  | 992,882 |  | 248,077 |  | 992,882 |  | 1,041,810 |  | 248,077 |  | 232,214 |
Banco Olé Consignado |  | - |  | - |  | - |  | - |  | - |  | 154,380 |
Bosan S.A |  | - |  | - |  | - |  | - |  | - |  | 95,350 |
Santander CCVM |  | 807,096 |  | 85,023 |  | 807,096 |  | 731,344 |  | 85,023 |  | 90,867 |
Banco RCI Brasil S.A. |  | 1,524,550 |  | 157,462 |  | 608,156 |  | 560,648 |  | 62,812 |  | 72,057 |
Santander Brasil Consórcio |  | 1,013,980 |  | 336,785 |  | 1,013,980 |  | 677,195 |  | 336,785 |  | 252,239 |
Others |  | 1,802,271 |  | 331,384 |  | 1,759,775 |  | 1,252,546 |  | 385,842 |  | 296,667 |
Total |  |  |  |  |  | 25,958,916 |  | 24,136,790 |  | 3,676,647 |  | 3,007,124 |

(1) Remaining income arising from expenses with the closure of the entity, see note 13.

|  |  |  |  |  |  |  |  |  |  |  | Consolidated
|  | Adjusted Stockholders' Equity |  | Net Income (Loss) Adjusted |  | Investments Value |  | Equity Accounting Results
|  | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2021 |  | 12/31/2020 |  | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2020
Jointly Controlled Companies Directly and Indirectly by Banco Santander |  |  |  |  |  |
TecBan |  | 893,973 |  | 241,053 |  | 169,676 |  | 123,924 |  | 45,752 |  | 22,219
Gestora de Crédito |  | 67,611 |  | (72,097) |  | 13,522 |  | 28,680 |  | (14,419) |  | (19,062)
Webmotors S.A. |  | 270,453 |  | 65,452 |  | 189,317 |  | 146,822 |  | 45,816 |  | 38,823
Norchem Holdings |  | - |  | - |  | - |  | - |  | - |  | (33)
Norchem Participações |  | - |  | - |  | - |  | - |  | - |  | 333
EBP |  | 11,321 |  | (136) |  | 1,258 |  | 1,273 |  | (15) |  | 9

Solution 4Fleet |  | 14,503 |  | (2,677) |  | 11,603 |  | - |  | (2,142) |  | -
Santander Auto |  | 42,523 |  | 12,230 |  | 21,262 |  | 15,775 |  | 6,115 |  | (2,422)
Hyundai Corretora de Seguros Ltda. |  | 2,520 |  | 431 |  | 1,260 |  | 1,044 |  | 216 |  | 110
PSA Corretora |  | 1,081 |  | 96 |  | 540 |  | 767 |  | 48 |  | 226
Others |  | - |  | - |  | 255 |  | (6,433) |  | (11,975) |  | 11,515
Total |  |  |  |  |  | 408,693 |  | 311,852 |  | 69,396 |  | 51,718

# 15. Fixed Assets

|  |  |  |  |  |  |  | Bank
|  |  |  |  |  | 12/31/2021 |  | 12/31/2020
|  | Cost |  | Depreciation |  | Net |  | Net
Real Estate |  | 2,463,155 |  | (916,273) |  | 1,546,882 |  | 1,595,073
Land |  | 640,772 |  | - |  | 640,772 |  | 640,650
Buildings |  | 1,822,383 |  | (916,273) |  | 906,110 |  | 954,423
Others Fixed Assets |  | 13,292,159 |  | (8,772,355) |  | 4,519,804 |  | 4,507,464
Installations, Furniture and Equipment |  | 5,264,470 |  | (3,281,577) |  | 1,982,893 |  | 1,999,855
Data Processing Equipment |  | 2,491,766 |  | (1,564,399) |  | 927,367 |  | 926,251
Leasehold Improvements |  | 4,415,089 |  | (3,143,659) |  | 1,271,430 |  | 1,359,694
Security and Communication Equipment |  | 818,337 |  | (535,372) |  | 282,965 |  | 171,178
Others |  | 302,497 |  | (247,348) |  | 55,149 |  | 50,486
Total |  | 15,755,314 |  | (9,688,628) |  | 6,066,686 |  | 6,102,537
|  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  | 12/31/2021 |  | 12/31/2020
|  | Cost |  | Depreciation |  | Net |  | Net
Real Estate |  | 2,752,082 |  | (977,780) |  | 1,774,302 |  | 1,841,529
Land |  | 712,200 |  | - |  | 712,200 |  | 715,969
Buildings |  | 2,039,882 |  | (977,780) |  | 1,062,102 |  | 1,125,560
Others Fixed Assets |  | 13,528,400 |  | (8,918,354) |  | 4,610,046 |  | 5,205,157
Installations, Furniture and Equipment |  | 5,299,099 |  | (3,315,314) |  | 1,983,785 |  | 2,088,388
Data Processing Equipment |  | 2,553,281 |  | (1,602,278) |  | 951,003 |  | 1,054,923
Leasehold Improvements |  | 4,528,530 |  | (3,212,298) |  | 1,316,232 |  | 1,398,841
Security and Communication Equipment |  | 822,656 |  | (538,972) |  | 283,684 |  | 586,394
Others |  | 324,834 |  | (249,492) |  | 75,342 |  | 76,610
Total |  | 16,280,482 |  | (9,896,134) |  | 6,384,348 |  | 7,046,686

# 16. Intangibles

|  |  |  |  |  |  |  | Bank
|  |  |  |  |  | 12/31/2021 |  | 12/31/2020
|  | Cost |  | Amortization |  | Net |  | Net
Goodwill on Acquired Companies |  | 27,220,515 |  | (26,518,018) |  | 702,497 |  | 1,876,197
Other Intangible Assets |  | 10,793,517 |  | (6,224,576) |  | 4,568,941 |  | 4,220,581
Acquisition and Development of Software |  | 6,639,641 |  | (3,927,863) |  | 2,711,778 |  | 2,100,607
Exclusivity Contracts for Provision of Banking Services | 3,980,496 |  | (2,187,562) |  | 1,792,934 |  | 1,964,771
Others |  | 173,380 |  | (109,151) |  | 64,229 |  | 155,203
Total |  | 38,014,032 |  | (32,742,594) |  | 5,271,438 |  | 6,096,778
|  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  | 12/31/2021 |  | 12/31/2020
|  | Cost |  | Amortization |  | Net |  | Net
Goodwill on Acquired Companies |  | 28,155,084 |  | (26,720,363) |  | 1,434,721 |  | 2,018,698
Other Intangible Assets |  | 11,145,052 |  | (6,457,073) |  | 4,687,979 |  | 4,452,919
Acquisition and Development of Software |  | 6,976,444 |  | (4,131,308) |  | 2,845,136 |  | 2,313,156
Exclusivity Contracts for Provision of Banking Services | 3,980,497 |  | (2,187,562) |  | 1,792,935 |  | 1,964,771
Others |  | 188,111 |  | (138,203) |  | 49,908 |  | 174,992
Total |  | 39,300,136 |  | (33,177,436) |  | 6,122,700 |  | 6,471,617

(*) For the period ended December 31, 2021, there was no impairment.

# 17. Funding

a) Opening of Equity Accounts

|  |  |  |  |  |  |  |  |  |  |  | Bank
|  |  |  |  |  |  |  |  |  | 12/31/2021 |  | 12/31/2020
|  | Without Maturity |  | Up to 3 Months |  | From 3 to 12 Months |  | Over 12 Months |  | Total |  | Total
Deposits |  | 106,065,134 |  | 104,464,738 |  | 91,776,359 |  | 104,576,178 |  | 406,882,409 |  | 392,471,480
Demand Deposits |  | 40,776,429 |  | - |  | - |  | - |  | 40,776,429 |  | 42,236,911
Savings Deposits |  | 65,220,066 |  | - |  | - |  | - |  | 65,220,066 |  | 63,306,504
Interbank Deposits |  | - |  | 2,453,850 |  | 2,893,514 |  | 273,873 |  | 5,621,237 |  | 5,003,476
Time Deposits (1) |  | 68,639 |  | 102,010,888 |  | 88,882,845 |  | 104,302,305 |  | 295,264,677 |  | 281,924,587
Other Deposits |  | - |  | - |  | - |  | - |  | - |  | 2
Money Market Funding |  | - |  | 80,761,481 |  | 4,393,054 |  | 15,715,553 |  | 100,870,087 |  | 159,971,460
Own Portfolio |  | - |  | 73,901,771 |  | 1,209,214 |  | 3,074 |  | 75,114,059 |  | 101,687,723
Government Securities |  | - |  | 60,546,331 |  | 1,089,597 |  | - |  | 61,635,928 |  | 90,892,803
Debt Securities in Issue |  | - |  | - |  | - |  | - |  | - |  | 824
Others |  | - |  | 13,355,440 |  | 119,617 |  | 3,074 |  | 13,478,131 |  | 10,794,096
Third Parties |  | - |  | 6,859,710 |  | - |  | - |  | 6,859,710 |  | 6,283,007
Linked to Trading Portfolio Operations |  | - |  | - |  | 3,183,840 |  | 15,712,479 |  | 18,896,318 |  | 52,000,730
Funds from Acceptance and Issuance of Securities | - |  | 7,043,270 |  | 21,832,673 |  | 86,967,036 |  | 115,842,979 |  | 87,059,806
Exchange Acceptance Resources |  | - |  | - |  | - |  | - |  | - |  | 101,493
Real Estate Credit Notes, Mortgage Notes, Credit and Similar Notes | - |  | 6,658,846 |  | 14,857,200 |  | 52,001,851 |  | 73,517,897 |  | 54,340,629
Real Estate Credit Notes - LCI (1) |  | - |  | 2,642,155 |  | 6,038,317 |  | 20,243,698 |  | 28,924,170 |  | 25,710,531
Agribusiness Credit Notes - LCA |  | - |  | 1,693,295 |  | 5,822,800 |  | 9,473,339 |  | 16,989,434 |  | 14,746,831
Treasury Bills - LF (2) |  | - |  | 2,161,516 |  | 2,480,290 |  | 20,432,457 |  | 25,074,264 |  | 12,749,911
Guaranteed Real Estate Credit Notes - LIG (3) | - |  | 161,879 |  | 515,793 |  | 1,852,358 |  | 2,530,030 |  | 1,133,356
Securities Issued Abroad |  | - |  | - |  | 5,886,661 |  | 32,540,510 |  | 38,427,171 |  | 30,233,240
Funding by Structured Operations Certificates |  | - |  | 384,423 |  | 1,088,813 |  | 2,424,675 |  | 3,897,911 |  | 2,384,444
Borrowings and Onlendings |  | - |  | 30,532,143 |  | 49,876,504 |  | 11,173,187 |  | 91,581,834 |  | 67,720,151
Foreign Borrowings |  | - |  | 28,527,840 |  | 47,493,793 |  | 3,707,117 |  | 79,728,750 |  | 54,971,763
Import and Export Financing Lines |  | - |  | 25,882,186 |  | 24,578,234 |  | 308,749 |  | 50,769,169 |  | 54,971,763
Other Credit Lines |  | - |  | 2,645,654 |  | 22,915,559 |  | 3,398,368 |  | 28,959,581 |  | -
Domestic Onlendings |  | - |  | 2,004,303 |  | 2,382,711 |  | 7,466,070 |  | 11,853,084 |  | 12,748,388
Total |  | 106,065,134 |  | 222,801,631 |  | 167,878,590 |  | 218,431,954 |  | 715,177,309 |  | 707,222,897

|  |  |  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  |  |  |  |  | 12/31/2021 |  | 12/31/2020
|  | Without Maturity |  | Up to 3 Months |  | From 3 to 12 Months |  | Over 12 Months |  | Total |  | Total
Deposits |  | 105,742,955 |  | 104,775,766 |  | 87,788,088 |  | 105,332,878 |  | 403,639,687 |  | 390,051,798
Demand Deposits |  | 40,454,250 |  | - |  | - |  | - |  | 40,454,250 |  | 41,821,289
Savings Deposits |  | 65,220,066 |  | - |  | - |  | - |  | 65,220,066 |  | 63,306,504
Interbank Deposits |  | - |  | 2,421,773 |  | 1,392,120 |  | 909,184 |  | 4,723,077 |  | 5,145,425
Time Deposits (1) |  | 68,639 |  | 102,353,993 |  | 86,395,968 |  | 104,423,694 |  | 293,242,294 |  | 279,778,578
Other Deposits |  | - |  | - |  | - |  | - |  | - |  | 2
Money Market Funding |  | - |  | 76,387,769 |  | 3,545,278 |  | 15,715,553 |  | 95,648,600 |  | 154,997,017
Own Portfolio |  | - |  | 70,828,055 |  | 361,439 |  | 3,074 |  | 71,192,568 |  | 96,713,280
Government Securities |  | - |  | 57,472,615 |  | 241,822 |  | - |  | 57,714,437 |  | 85,918,360
Debt Securities in Issue |  | - |  | - |  | - |  | - |  | - |  | 824
Others |  | - |  | 13,355,440 |  | 119,617 |  | 3,074 |  | 13,478,131 |  | 10,794,096
Third Parties |  | - |  | 5,559,714 |  | - |  | - |  | 5,559,714 |  | 6,283,007
Linked to Trading Portfolio Operations |  | - |  | - |  | 3,183,840 |  | 15,712,479 |  | 18,896,318 |  | 52,000,730
Funds from Acceptance and Issuance of Securities | - |  | 7,313,586 |  | 20,267,894 |  | 67,799,380 |  | 95,380,860 |  | 70,627,767
Exchange Acceptances |  | - |  | 58,889 |  | 276,261 |  | 1,026,293 |  | 1,361,443 |  | 1,175,794
Real Estate Credit Notes, Mortgage Notes, Credit and Similar Notes | - |  | 6,870,273 |  | 15,947,164 |  | 54,352,000 |  | 77,169,438 |  | 57,668,252
Real Estate Credit Notes - LCI (2) |  | - |  | 2,642,155 |  | 6,038,317 |  | 20,243,698 |  | 28,924,170 |  | 25,710,531
Agribusiness Credit Notes - LCA |  | - |  | 1,693,295 |  | 5,822,800 |  | 9,473,339 |  | 16,989,434 |  | 14,746,831

Treasury Bills - LF (3) |  | - |  | 2,372,943 |  | 3,570,254 |  | 22,782,606 |  | 28,725,804 |  | 16,077,534
Guaranteed Real Estate Credit Notes - LIG (4)(5) | - |  | 161,879 |  | 515,793 |  | 1,852,358 |  | 2,530,030 |  | 1,133,356
Securities Issued Abroad |  | - |  | - |  | 2,955,656 |  | 9,996,412 |  | 12,952,068 |  | 9,399,277
Funding by Structured Operations Certificates |  | - |  | 384,423 |  | 1,088,813 |  | 2,424,675 |  | 3,897,911 |  | 2,384,444
Borrowings and Onlendings |  | - |  | 30,537,059 |  | 49,876,504 |  | 11,173,187 |  | 91,586,750 |  | 67,759,950
Domestic Borrowings |  | - |  | 4,916 |  | - |  | - |  | 4,916 |  | 39,799
Foreign Borrowings |  | - |  | 28,527,840 |  | 47,493,793 |  | 3,707,117 |  | 79,728,750 |  | 54,971,763
Import and Export Financing Lines |  | - |  | 25,882,186 |  | 24,578,234 |  | 308,749 |  | 50,769,169 |  | 54,971,763
Other Credit Lines |  | - |  | 2,645,654 |  | 22,915,559 |  | 3,398,368 |  | 28,959,581 |  | -
Domestic Onlendings |  | - |  | 2,004,303 |  | 2,382,711 |  | 7,466,070 |  | 11,853,084 |  | 12,748,388
Total |  | 105,742,955 |  | 219,014,179 |  | 161,477,765 |  | 200,020,997 |  | 686,255,896 |  | 683,436,532

(1) Consider the maturities established in the respective investments, with the possibility of immediate withdrawal, in advance of its maturity.

(2) Real estate credit bills are fixed-income securities backed by real estate credits and guaranteed by mortgage or fiduciary sale of real estate. As of December 31, 2021, the maturity dates range between 2022 and 2028.

(3) The main characteristics of the financial bills are a minimum term of two years, a minimum face value of R$50 and an early redemption permit of only 5% of the issued amount. As of December 31, 2021, the maturity dates range between 2022 and 2031.

(4) Guaranteed Real Estate Bonds are fixed income securities backed by real estate credits guaranteed by the issuer and by a pool of real estate credits separated from the issuer's other assets. As of December 31, 2021, they mature between 2022 and 2035.

(5) Funding made under the Special Compulsory Liquidity line pursuant to Resolution 4,795/20.

In the Bank and in the Consolidated, the export and import financing lines are funds raised from financial institutions abroad, intended for investment in commercial exchange operations, related to the discount of export bills and pre-financing to export and import, whose maturities go up to the year 2031 (12/31/2020 - until the year 2024) and are subject to financial charges, corresponding to the exchange rate variation plus interest ranging from 0.42% to 5.7% pa (12/31/2020 - from 0.35% pa to 4.3% pa).

Obligations for onlendings from the country - official institutions are subject to financial charges corresponding to the TJLP, exchange variation of the BNDES currency basket or the exchange variation of the US dollar, plus interest, in accordance with the operational policies of the BNDES System.

|  |  |  |  | Bank | Consolidated
Eurobonds | Issuance | Maturity | Currency | Interest Rate (p.a.) | 12/31/2021 | 12/31/2020 | 12/31/2021 | 12/31/2020
Eurobonds | 2018 | 2025 | USD | 4.4% | 117,150 | 14,469 | 117,150 | 14,469
Eurobonds | 2018 | 2025 | USD | 0% to 4.4% | 771,300 | - | 771,300 | -
Eurobonds | 2019 | 2022 | USD | 4.4% | 28,088 | 857,678 | - | 853,929
Eurobonds | 2019 | 2022 | USD | 0% to 4.4% | 106,805 | 1,625,192 | - | 1,625,192
Eurobonds | 2019 | 2023 | USD | 0% to 4.4% | 796,097 | 1,841,240 | - | 1,720,186
Eurobonds | 2019 | 2023 | USD | CDI + 2.65% | 4,465 | - | - | -
Eurobonds | 2019 | 2024 | USD | 4.4% | 133,796 | - | - | -
Eurobonds | 2019 | 2024 | USD | 0% to 4.4% | 2,193,989 | - | - | -
Eurobonds | 2019 | 2024 | USD | CDI + 2.65% | 26,424 | - | - | -
Eurobonds | 2019 | 2025 | USD | 0% to 4.4% | 369,554 | - | 225,533 | -
Eurobonds | 2019 | 2026 | USD | 4.4% | 75,716 | - | 75,716 | -
Eurobonds | 2019 | 2026 | USD | 0% to 4.4% | 293,644 | - | - | -
Eurobonds | 2019 | 2027 | USD | 0% to 4.4% | 643,846 | - | 632,831 | -
Eurobonds | 2020 | 2022 | USD | 4.4% | 308,279 | - | 306,253 | -
Eurobonds | 2020 | 2022 | USD | 0% to 4.4% | 1,703,339 | - | - | -
Eurobonds | 2020 | 2022 | USD | CDI+6.4% | 75,485 | - | - | -
Eurobonds | 2020 | 2023 | USD | 4.4% | 4,627 | - | - | -
Eurobonds | 2020 | 2023 | USD | 0% to 4.4% | 3,220,706 | - | 455,666 | -
Eurobonds | 2020 | 2023 | USD | CDI+6.4% | 60,388 | 6,513,222 | - | 1,279,507
Eurobonds | 2020 | 2024 | USD | 4.4% | 8,053 | 10,061,315 | - | 3,252,485
Eurobonds | 2020 | 2024 | USD | 0% to 4.4% | 2,464,322 | 170,257 | - | 170,257
Eurobonds | 2020 | 2024 | USD | CDI+6.4% | 143,744 | 4,800,393 | - | 16,923
Eurobonds | 2020 | 2025 | USD | 4.4% | 12,724 | 121,925 | - | 121,925
Eurobonds | 2020 | 2025 | USD | 0% to 4.4% | 4,381,601 | 1,527,334 | 46,655 | 22,887
Eurobonds | 2020 | 2026 | USD | 4.4% | 16,760 | - | - | -
Eurobonds | 2020 | 2026 | USD | 0% to 4.4% | 7,047 | 223,435 | - | 223,435

Eurobonds | 2020 | 2027 | USD | 0% to 4.4% | 19,330 | - | - | -
Eurobonds | 2021 | 2022 | USD | 4.4% | 42,728 | 2,476,780 | - | 98,082
Eurobonds | 2021 | 2022 | USD | 0% to 4.4% | 2,854,297 | - | 2,005,534 | -
Eurobonds | 2021 | 2022 | USD | Até 9% | 63,104 | - | 41,749 | -
Eurobonds | 2021 | 2022 | USD | CDI+1.9% | 221,194 | - | 205,624 | -
Eurobonds | 2021 | 2022 | USD | CDI+6.4% | 30,459 | - | - | -
Eurobonds | 2021 | 2022 | USD | CDI + 2.65% | 699,890 | - | 181,116 | -
Eurobonds | 2021 | 2023 | USD | 0% a 4.4% | 1,385,937 | - | 408,824 | -
Eurobonds | 2021 | 2023 | USD | CDI+1.9% | 157,370 | - | 157,370 | -
Eurobonds | 2021 | 2023 | USD | CDI + 2.65% | 157,933 | - | 5,316 | -
Eurobonds | 2021 | 2024 | USD | 4.4% | 61,754 | - | - | -
Eurobonds | 2021 | 2024 | USD | 0% a 4.4% | 2,316,303 | - | 246,192 | -
Eurobonds | 2021 | 2024 | USD | Until 9% | 8,157 | - | - | -
Eurobonds | 2021 | 2024 | USD | CDI+1.9% | 1,233 | - | - | -
Eurobonds | 2021 | 2024 | USD | CDI + 2.65% | 1,043,471 | - | - | -
Eurobonds | 2021 | 2025 | USD | 0% to 4.4% | 1,601,271 | - | 593,036 | -
Eurobonds | 2021 | 2025 | USD | CDI+1.9% | 53,765 | - | - | -
Eurobonds | 2021 | 2025 | USD | CDI + 2.65% | 71,890 | - | - | -
Eurobonds | 2021 | 2026 | USD | 0% to 4.4% | 5,963,357 | - | 3,890,578 | -
Eurobonds | 2021 | 2026 | USD | CDI+1.9% | 140,870 | - | - | -
Eurobonds | 2021 | 2026 | USD | CDI + 2.65% | 692,299 | - | 210,639 | -
Eurobonds | 2021 | 2027 | USD | 4.4% | 71,252 | - | - | -
Eurobonds | 2021 | 2027 | USD | 0% to 4.4% | 235,265 | - | 101,029 | -
Eurobonds | 2021 | 2028 | USD | 0% to 4.4% | 173,048 | - | - | -
Eurobonds | 2021 | 2028 | USD | Until 9% | 30,126 | - | 30,126 | -
Eurobonds | 2021 | 2028 | USD | CDI+1.9% | 9,051 | - | - | -
Eurobonds | 2021 | 2028 | USD | CDI+6.4% | 26,018 | - | 26,018 | -
Eurobonds | 2021 | 2028 | USD | CDI + 2.65% | 110,038 | - | - | -
Eurobonds | 2021 | 2031 | USD | 0% to 4.4% | 2,217,811 | - | 2,217,811 | -
Total |  |  |  |  | 38,427,171 | 30,233,240 | 12,952,068 | 9,399,277

b) Opening profit and loss accounts

|  | Bank |  | Consolidated
| 01/01 to 12/31/2021 | 01/01 to 12/31/2020 | 01/01 to 12/31/2021 | 01/01 to 12/31/2020
Time Deposits (1) (2) | 12,363,768 | 10,229,409 | 12,221,164 | 11,340,893
Savings Deposits | 2,059,346 | 1,389,355 | 2,059,346 | 1,389,356
Interbank Deposits | 216,372 | 200,753 | 266,846 | 259,594
Money Market Funding | 5,472,444 | 7,027,108 | 5,269,305 | 6,850,518
Upgrade and Provisions Interest and Pension Plans and Capitalization | 5,626 | - | 190,736 | 144,130
Others (3) | 14,433,171 | 25,748,152 | 14,627,630 | 25,896,184
Total | 34,550,727 | 44,594,777 | 34,635,027 | 45,880,675

(1) In the Bank and in the Consolidated, includes the recording of interest in the amount of R$885,718 (2020 - R$909,392), referring to the issuance of an Eligible Debt Instrument for Tier I and II Capital (Note 20).

(2) Includes exchange variation expense in the amount of R$1,528,068 in the Bank and in the Consolidated (2020 - exchange variation expense in the amount of R$9,586 in the Bank and in the Consolidated).

(3) As of December 31, 2021, includes exchange variation income in the amount of R$9,161,115 in the Bank and in the Consolidated (2020 – Exchange variation expense in the amount of R$22,189,857).

# 18. Other Financial Liabilities

a) Composition

|  |  |  |  | Bank
|  |  |  |  | 12/31/2021 |  | 12/31/2020
Foreign Exchange Portfolio (Note 9) |  |  |  |  | 57,558,791 |  | 84,875,959
Trading and Intermediation of Values (Note 10.b) |  |  | 2,949,826 |  | 315,940
Debt Instruments Eligible to Compose Capital (Note 18.b) |  |  | 19,641,408 |  | 13,119,660

Collected Taxes and Other |  |  |  |  | 196,811 |  | 94,975
Third-Party Funds in Transit |  |  |  |  | 16,890 |  | 25,223
Receipts and Payments Pending Settlement |  |  | 5,425,924 |  | 4,831,517
Total |  |  |  |  | 85,789,650 |  | 103,263,274

|  |  |  |  | Consolidated
|  |  |  |  | 12/31/2021 |  | 12/31/2020
Foreign Exchange Portfolio (Note 9) |  |  |  |  | 57,558,791 |  | 84,875,959
Trading and Intermediation of Values (Note 10.b) (1) |  |  | 4,182,663 |  | 1,370,525
Debt Instruments Eligible to Compose Capital (Note 18.b) |  |  | 19,641,408 |  | 13,119,660
Collected Taxes and Other |  |  |  |  | 248,306 |  | 97,453
Third-Party Funds in Transit |  |  |  |  | 16,890 |  | 435,173
Receipts and Payments Pending Settlement |  |  | 5,425,924 |  | 4,831,517
Total |  |  |  |  | 87,073,982 |  | 104,730,287

(1) In 2021, due to better liquidity conditions observed in the market for electricity trading operations for certain maturities, management reclassified contracts maturing up to 2 years from level 3 to level 2 (Note 32.f) and revisited the treatment accounting in relation to the electric energy commercialization contracts, which no longer include the amount of the "principal" and, therefore, only the adjustments to fair value and interest determined in these operations are recorded in equity accounts. For better comparability purposes, the “principal” amounts of energy trading operations recorded in balance sheet accounts on December 31, 2020 were remeasured.

b) Debt Instruments Eligible to Compose Capital

The details of the balance of the item Debt Instruments Eligible to Capital referring to the issuance of equity instruments to compose Level I and Level II of the PR due to the Capital Optimization Plan, are as follows:

|  |  |  |  |  |  |  |  |  |  |  | Bank/Consolidated
|  |  |  |  |  |  |  |  |  | 12/31/2021 |  | 12/31/2020
Debt Instruments Eligible to Compose Capital |  | Issuance |  | Maturity |  | Amount (Million) |  | Interest Rate (p.a.) (1) |  | Total |  | Total
Tier I (1) |  | November - 18 |  | No Maturity (Perpetual) |  | $1,250 |  | 7.250% |  | 7,050,080 |  | 6,554,451
Tier II (1) |  | November - 18 |  | November - 28 |  | $1,250 |  | 6.125% |  | 7,038,527 |  | 6,565,209
Financial Bills - Tier II (2) |  | November - 21 |  | November - 31 |  | $5,300 |  | CDI+2% |  | 5,351,046 |  | -
Financial Bills – Tier II (2) |  | December - 21 |  | December - 31 |  | $200 |  | CDI+2% |  | 201,755 |  | -
Total |  |  |  |  |  |  |  |  |  | 19,641,408 |  | 13,119,660

(1) The issues were carried out through the Cayman Branch and there is no Income Tax at source, and interest is paid semiannually, as of May 8, 2019.

(2) Letras Financeiras issued in November 2021 have a redemption and repurchase option.

Notes have the following common characteristics:

(a) Unit value of at least US$150 thousand and in integral multiples of US$1 thousand which exceeds such minimum value;

(b) The Notes may be repurchased or redeemed by Banco Santander after the 5th (fifth) anniversary from the date of issue of the Notes, at the Bank's sole discretion or due to changes in the tax legislation applicable to the Notes; or at any time, due to the occurrence of certain regulatory events.

# 19. Other Payables – Other

|  |  | Bank |  |  |  | Consolidated
| 12/31/2021 |  | 12/31/2020 |  | 12/31/2021 |  | 12/31/2020
Provision Technical for Capitalization Operations | - |  | - |  | 3,747,397 |  | 3,178,674
Payables for Credit Cards | 40,390,304 |  | 31,177,114 |  | 40,674,867 |  | 44,825,229
Provision for Tax Risks and Legal Obligations (Note 20.b) | 4,312,234 |  | 4,249,744 |  | 6,748,684 |  | 6,707,293
Provision for Legal and Administrative Proceedings - Labor and Civil (Note 20.b) | 5,033,675 |  | 5,921,882 |  | 5,325,716 |  | 6,342,280
Provision for Financial Guarantees (Note 19.a) | 324,728 |  | - |  | 324,728 |  | 255,179
Employee Benefit Plans (Note 29) | 2,699,902 |  | 3,887,144 |  | 2,728,125 |  | 3,929,265
Payables for Acquisition of Assets and Rights | 22,307 |  | 28,538 |  | 22,307 |  | 28,538
Reserve for Legal and Administrative Proceedings - Responsibility of Former Controllers Stockholders (Note 20.f) | 496 |  | 496 |  | 496 |  | 496
Accrued Liabilities |  |  |  |  |  |  |
Personnel Expenses | 1,794,489 |  | 1,718,919 |  | 2,077,434 |  | 1,990,309
Administrative Expenses | 254,802 |  | 407,652 |  | 393,089 |  | 588,276
Others Payments | 84,847 |  | 33,120 |  | 223,968 |  | 504,451
Creditors for Unreleased Funds | 1,485,921 |  | 2,356,760 |  | 1,485,921 |  | 2,356,760
Provision of Payment Services | 619,570 |  | 637,907 |  | 619,570 |  | 637,907
Suppliers | 777,377 |  | 571,880 |  | 1,318,328 |  | 958,713
Social and Statutory | 1,149,828 |  | 1,502,039 |  | 1,468,031 |  | 1,589,096

Others (1) | 6,568,755 |  | 7,232,564 |  | 12,778,291 |  | 13,651,558
Total | 65,519,235 |  | 59,725,759 |  | 79,936,952 |  | 87,544,024

(1) Includes impacts of the exchange variation referring to Notes.

a) Provision for Financial Guarantees Provided

The classification of operations involving guarantees provided for the constitution of provisions is based on the estimate of the risk involved. It results from the process of evaluating the quality of customers and operations, by a statistical model based on quantitative and qualitative information or by a specialized credit analyst, who allows them to be classified according to their probability of default, based on objective internal and market variables (bureaus), previously identified as predictors of the probability of default. After this assessment, operations are classified according to provisioning ratings, based on CMN Resolution No. 2682/1999. Through this analysis, the provision amounts to cover each operation are recorded, considering the type of guarantee provided, as required by CMN Resolution No. 4,512/2016.

|  |  |  |  |  |  |  |  | Bank/Consolidated
|  |  |  | 12/31/2021 |  |  |  |  | 12/31/2021
Type of Financial Guarantee |  | Balance Guarantees Provided |  | Provision |  |  |  | Balance Guarantees Provided | Provision
Linked to International Merchandise Trade |  | 6,244,755 |  | 28,506 |  |  |  | 1,813,620 | 4,121
Linked to Bids, Auctions, Provision of Services or Execution of Works | 6,796,175 |  | 4,198 |  |  |  | 5,602,995 | 5,403
Linked to the Supply of Goods |  | 1,698,518 |  | 2,442 |  |  |  | 1,361,792 | 1,846
Guarantee in Legal and Administrative Proceedings of Fiscal Nature | 11,823,964 |  | 243,235 |  |  |  | 12,082,480 | 175,443
Other Guarantees |  | 2,748,497 |  | 1,897 |  |  |  | 335,281 | 1,689
Other Bank Guarantees |  | 19,525,773 |  | 36,489 |  |  |  | 16,532,462 | 33,055
Other Financial Guarantees |  | 88,388 |  | 7,960 |  |  |  | 5,047,032 | 33,622
Total |  | 48,926,070 |  | 324,727 |  |  |  | 42,775,662 | 255,179

Changes in Allowances for Financial Guarantees

|  |  |  |  |  |  |  | Bank/Consolidated
|  |  |  | 01/01 to 12/31/2021 |  |  |  | 01/01 to 12/31/2020
Balance at Beginning |  |  |  | 255,179 |  |  |  | 166,105
Constitution |  |  |  | 95,431 |  |  |  | 99,035
Reversal (1) |  |  |  | (25,883) |  |  |  | (9,961)
Balance at End |  |  |  | 324,727 |  |  |  | 255,179

(1) Corresponds to the honored bond, change in rating and provision recorded in the allowance for doubtful accounts.

# 20. Provisions, Contingent Assets and Liabilities and Legal Obligations - Tax and Social Security

a) Contingent Assets

In the Bank and in the Consolidated, on December 31, 2021, and December 31, 2020, no contingent assets were recognized.

b) Balance Sheet of Provisions for Judicial and Administrative Proceedings and Legal Obligations by Nature

|  |  |  | Bank |  |  |  | Consolidated
|  | 12/31/2021 |  | 12/31/2020 |  | 12/31/2021 |  | 12/31/2020
Reserve for Tax Contingencies and Legal Obligations (Note 19) | 4,312,234 |  | 4,249,744 |  | 6,748,684 |  | 6,707,292
Accrual for Legal and Administrative Proceedings - Labor and Civil (Note 19) | 5,033,675 |  | 5,921,882 |  | 5,325,716 |  | 6,342,280
Labor |  | 1,941,169 |  | 2,656,098 |  | 2,084,247 |  | 2,900,835
Civil |  | 3,092,507 |  | 3,265,784 |  | 3,241,469 |  | 3,441,445
Total |  | 9,345,909 |  | 10,171,626 |  | 12,074,400 |  | 13,049,572

c) Change in Accrual for Judicial and Administrative Proceedings and Legal Obligations

|  |  |  |  |  |  |  |  |  |  |  | Bank
|  |  |  |  |  | 01/01 to 12/31/2021 |  |  |  |  |  | 01/01 to 12/31/2020
|  | Tax |  | Labor |  | Civil |  | Tax |  | Labor |  | Civil
Balance at Beginning |  | 4,249,744 |  | 2,656,098 |  | 3,265,784 |  | 4,346,769 |  | 3,216,008 |  | 2,963,877
Recognition Net of Reversal (1) (3) |  | 85,877 |  | 800,704 |  | 462,721 |  | (130,820) |  | 893,227 |  | 632,425
Inflation Adjustment |  | 102,210 |  | 99,391 |  | 409,410 |  | 91,797 |  | 28,871 |  | 195,763
Write-offs Due to Payment |  | (125,597) |  | (1,615,024) |  | (1,045,408) |  | (58,002) |  | (1,482,008) |  | (526,281)
Balance at End |  | 4,312,234 |  | 1,941,169 |  | 3,092,507 |  | 4,249,744 |  | 2,656,098 |  | 3,265,784
Escrow Deposits - Other Receivables | 1,330,438 |  | 690,146 |  | 695,474 |  | 1,584,778 |  | 779,992 |  | 671,035

Escrow Deposits - Securities |  | 3,177 |  | 3,810 |  | 1,330 |  | 4,855 |  | 3,191 |  | 826
Total Escrow Deposits (2) |  | 1,333,615 |  | 693,956 |  | 696,804 |  | 1,589,633 |  | 783,183 |  | 671,861
|  |  |  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  | 01/01 to 12/31/2021 |  |  |  |  |  | 01/01 to 12/31/2020
|  | Tax |  | Labor |  | Civil |  | Tax |  | Labor |  | Civil
Balance at Beginning |  | 6,707,293 |  | 2,900,835 |  | 3,441,445 |  | 6,630,722 |  | 3,517,431 |  | 3,222,557
Recognition Net of Reversal (1) (3) |  | 124,822 |  | 833,487 |  | 628,477 |  | 66,144 |  | 985,903 |  | 807,086
Inflation Adjustment |  | 156,021 |  | 99,416 |  | 414,472 |  | 132,163 |  | 35,108 |  | 199,306
Write-offs Due to Payment |  | (239,452) |  | (1,749,491) |  | (1,242,925) |  | (121,737) |  | (1,637,607) |  | (787,504)
Balance at End |  | 6,748,684 |  | 2,084,247 |  | 3,241,469 |  | 6,707,292 |  | 2,900,835 |  | 3,441,445
Escrow Deposits - Other Receivables | 2,571,110 |  | 733,616 |  | 705,768 |  | 2,860,113 |  | 849,400 |  | 677,847
Escrow Deposits - Securities |  | 4,177 |  | 3,810 |  | 1,330 |  | 5,737 |  | 3,190 |  | 826
Total Escrow Deposits (2) |  | 2,575,287 |  | 737,426 |  | 707,098 |  | 2,865,850 |  | 852,590 |  | 678,673

(1) Tax risks include the constitution of provisions for taxes related to legal and administrative proceedings and legal obligations, recorded in other operating income and other operating expenses and IR and CSLL.

(2) Refer to escrow deposit amounts, limited to the amount of the provision and do not include escrow deposits related to possible and/or remote contingencies and appeal deposits.

d) Tax and Social Security, Labor and Civil Provisions

Banco Santander and its subsidiaries are parties to legal and administrative proceedings of a tax, social security, labor and civil nature, arising from the normal course of their activities.

Provisions were set up based on the nature, complexity and history of the actions and on the assessment of loss of the companies' shares based on the opinions of internal and external legal advisors. Banco Santander has a policy of fully provisioning the value at risk of actions whose assessment is probable loss. Legal obligations of a tax and social security nature are fully recognized in the financial statements.

Management understands that the provisions made are sufficient to meet legal obligations and any losses arising from legal and administrative proceedings as follows:

d.1) Lawsuits and Administrative Proceedings related to Tax and Social Security

Main lawsuits and administrative proceedings related to legal obligations, tax and social security

PIS and COFINS - R$1,973,373 in the Bank and R$4,090,025 in the Consolidated (12/31/2020 - R$1,934,120 in the Bank and R$4,008,137 in the Consolidated): Banco Santander and its subsidiaries filed legal measures to remove the application of Law No. 9,718/1998, which modified the calculation basis of PIS and COFINS so that they were levied on all corporate income and not only on those arising from the provision of services and sale of goods. Regarding the Banco Santander lawsuit, on April 23, 2015, a decision of the Federal Supreme Court (STF) was published, admitting the Extraordinary Appeal filed by the Union regarding the PIS and denying the continuation of the Extraordinary Appeal of the Federal Public Ministry regarding the COFINS. Both appealed this decision, without any success, so that the claim referring to COFINS is defined, prevailing the decision of the Regional Federal Court of the 4th Region of August 2007, favorable to Banco Santander. The PIS of Banco Santander is still pending a final judgment by the STF, as well as the enforceability of the PIS and COFINS of the other subsidiaries.

CSLL Rate Increase – R$117,018 in the Consolidated (12/31/2020 - R$114,449 in the Consolidated): Banco Santander and its subsidiaries filed lawsuits seeking to rule out the increase in the CSLL rate imposed by MP 413/ 2008, converted into Law No. 11.727/2008. Financial institutions were previously subject to the 9% rate for CSLL, however, the new legislation established the rate of 15%, as of April 2008. In 2018, in view of the success rating and the unfavorable scenario in the Courts, we opted for the payment of the amounts discussed, except for the company Renault do Brasil Credit, Financing and Investment Company (RCI), which is still awaiting judgment.

Main legal and administrative proceedings with probable risk of loss

Banco Santander and its subsidiaries are parties to legal and administrative proceedings related to tax and social security disputes, which are classified, based on the opinion of legal advisors, as a probable risk of loss.

Provisional Contribution on Financial Transactions (CPMF) in Customer Operations - R$945,715(12/31/2020 - R$924,457) in the Bank and Consolidated: in May 2003, the Federal Revenue Service of Brazil issued a tax assessment notice at Santander Distribuidora of Bonds and Securities Ltd. (Santander DTVM) and another notice at Banco Santander (Brasil) SA The object of the case was the collection

of CPMF on transactions carried out by Santander DTVM in the management of its customers' funds and clearing services provided by the Bank to Santander DTVM, which occurred during the years 2000, 2001 and 2002. The administrative process ended unfavorable for both Companies. On July 3, 2015, Banco and Santander Brasil Tecnologia S.A. (current name of Produban Serviços de Informática S.A. and Santander DTVM) filed a lawsuit seeking to annul both tax debts. Said action had an inadmissible sentence and decision, which gave rise to the filing of a Special Appeal to the STJ and an Extraordinary Appeal to the STF, which are awaiting judgment. Based on the assessment of the legal advisors, a provision was made to cover the loss considered probable in the lawsuit.

National Institute of Social Security (INSS) - R$53,936 in the Bank and R$53,936 in the Consolidated (12/31/2020 - R$51,402 in the Bank and R$51,409 in the Consolidated): Banco Santander and its subsidiaries are discussing administratively and judicially the collection of social security contribution and education salary on various amounts that, according to the assessment of legal advisors, do not have a salary nature.

Tax on Services (ISS) - Financial Institutions - R$256,770 Bank and R$283,528 in the Consolidated (12/31/2020 - R$239,370 in the Bank and R$263,183 in the Consolidated): Banco Santander and its subsidiaries are discussing administratively and judicially the requirement, by several municipalities, of the payment of ISS on various revenues arising from operations that are not usually classified as provision of services. In addition, other actions involving ISS, classified as possible loss risk, are described in note 20.h.

d.2) Legal and Administrative Lawsuits of a Labor Nature

These are lawsuits filed by Unions, Associations, the Public Ministry of Labor and former employees claiming labor rights they deem to be due, in particular the payment of “overtime” and other labor rights, including lawsuits related to retirement benefits.

For lawsuits considered common and similar in nature, provisions are recorded based on the historical average of closed proceedings. Claims that do not meet the above criteria are provisioned based on an individual assessment carried out, and the provisions are set up based on the probable risk of loss, in the law and in case law, in accordance with the assessment of loss carried out by the legal advisors.

Former employees of Banespa. Action distributed in 1998 by the Association of Retired Persons of Banespa (AFABESP) requesting the payment of a semiannual bonus provided for in the regulations of Banco Banespa for approximately 8,400 former employees (retirees), according to which the payment will be made in the event that the Bank makes a profit and the distribution of this profit is approved by the board of directors. The bonus was not paid in 1994 and 1995 because Banespa bank did not make a profit during these years. Partial payments were made between 1996 and 2000 as approved by the board of directors. Said clause was excluded from the regulation in 2001. The Regional Labor Court and the Superior Labor Court ordered Santander Brasil, as successor to Banespa, to pay the semiannual bonus for the periods relating to the second semester of 1996 and the semesters of 1997. On March 20, 2019, a decision of the Federal Supreme Court (Supreme Federal Court, or “STF”) rejected the extraordinary appeal filed by Banco Santander, which did not resolve the merits of the case. We filed a rescission action to annul the sentence due to the lack of legitimacy of AFABESP (second precedent No. 573.232 of the STF) or to recognize the nullity of the TRT judgment that did not notify Banco Santander about the modifying effects of the decision, as well as to suspend the execution in the main process. The rescission action was dismissed, and this decision was filed a motion for clarification, due to the absence of an explicit statement about the arguments brought by the Bank. Regarding the Motions for Clarification, the points of omission were not answered as required by law, which is why an Extraordinary Appeal was filed, which was denied by the TST. From this decision, the Bank filed an interlocutory appeal, which is pending admissibility, considering that the decisions rendered by the Superior Labor Court contradict the already peaceful position in the STF (precedent No. 573,232), according to which the Association needs a specific power of attorney to sue in judgment, and also the decision affronts constitutional precepts about access to justice (item XXXV of art. 5 of the CF) by determining excessive collection of costs. In relation to the main action, in August 2021, a decision was rendered that determined that the execution be carried out individually in the court corresponding to each defendant and AFABESP filed an appeal, however, so far there has been no decision in this regard.

Our legal advisors classified the risk of loss as probable. The current decisions of the court, and neither of the court in the main proceedings, do not define a specific amount to be paid by the substituted, and the amounts must be calculated in regular settlement of the sentence.

On December 31, 2021, the case is classified as probable loss and the provision was constituted based on the estimated loss.

d.3) Civil Judicial and Administrative Proceedings

These provisions generally arise from: (1) lawsuits requesting revision of contractual terms and conditions or requests for monetary adjustments, including alleged effects of the implementation of various government economic plans, (2) lawsuits arising from financing contracts, (3) execution actions; and (4) damages claims. For civil actions considered common and similar in nature, provisions are recorded based on the historical average of closed proceedings. Claims that do not meet the above criteria are provisioned based on an individual assessment carried out, and the provisions are set up based on the probable risk of loss, in the law and in case law, in accordance with the assessment of loss carried out by the legal advisors.

The main lawsuits classified as risk of probable loss are described below:

Indemnity Actions - These refer to compensation for material and/or moral damage, relating to the consumer relationship, dealing mainly with issues relating to credit cards, direct consumer credit, checking accounts, collection and loans and other matters. In the actions related to causes considered similar and usual for the business, in the normal course of the Bank's activities, the provision is constituted

based on the historical average of closed processes. Claims that do not meet the above criteria are provisioned based on an individual assessment carried out, and the provisions are set up based on the probable risk of loss, in the law and in case law, in accordance with the assessment of loss carried out by the legal advisors.

Economic Plans - Refer to legal disputes, claiming alleged inflationary purges arising from Economic Plans (Bresser, Verão, Collor I and II), as they understand that such plans violated acquired rights related to the application of inflation indices supposedly due to Savings Accounts, Judicial Deposits and Time Deposits (CDBs). The lawsuits are provisioned based on the individualized assessment of loss carried out by the legal advisors.

Banco Santander is also party to public civil actions, on the same matter, filed by consumer protection entities, the Public Ministry or Public Defenders. The constitution of a provision is made only for cases with probable risk, based on requests for individual executions. The issue is still under review at the STF. There is jurisprudence in the STF favorable to Banks regarding economic phenomenon similar to that of savings, as in the case of correction of time deposits (CDBs) and corrections applied to contracts (table).

However, the jurisprudence of the STF has not yet been consolidated on the constitutionality of the norms that modified the monetary standard in Brazil. On April 14, 2010, the Supreme Court of Justice (STJ) ruled that the deadline for bringing public civil actions discussing the purges is 5 years from the date of the plans, but this decision has not yet become final. Thus, with this decision, a large part of the actions, as they were proposed after a period of 5 years, will probably be dismissed, reducing the amounts involved. The STJ also decided that the period for individual savers to qualify for Public Civil Actions is also 5 years, counted from the final and unappealable decision of the respective sentence. Banco Santander believes in the success of the theses defended before these courts for their content and foundation.

At the end of 2017, the Federal General Counsel (AGU), Bacen, the Consumer Defense Institute (Idec), the Brazilian Savings Front (Febrapo) and the Brazilian Federation of Banks (Febraban) signed an agreement that seeks to end the legal disputes over the Economic Plans.

Discussions focused on defining the amount that would be paid to each author, according to the balance in the passbook on the date of the plan. The total value of the payments will depend on the number of subscriptions, and also on the number of savers who have proven in court the existence of the account and the balance on the anniversary date of the change in the indices. The term of agreement negotiated between the parties was approved by the STF.

In a decision handed down by the STF, there was a national suspension of all processes that deal with the issue for the period of validity of the agreement, with the exception of cases in which the sentence was definitively complied with.

On March 11, 2020, the agreement was extended by means of an amendment, with the inclusion of actions that involve only the discussion of the Collor I Plan. June 2020

Management considers that the provisions made are sufficient to cover the risks involved with the economic plans, considering the approved agreement.

e) Tax and Social Security, Labor and Civil Contingent Liabilities Classified as Risk of Possible Loss

These are legal and administrative proceedings of a tax, social security, labor and civil nature classified, based on the opinion of legal advisors, as a possible risk of loss, and therefore not provisioned.

Tax lawsuits classified as possible losses totaled R$29,726 million in the Consolidated, with the main lawsuits being as follows:

INSS on Profit Sharing (PLR) - the Bank and its subsidiaries have legal and administrative proceedings arising from questionings by the tax authorities regarding the collection of social security contributions on payments made as profit sharing. As of December 31, 2021, the amount was approximately R$7,341 million.

Tax on Services (ISS) - Financial Institutions - Banco Santander and its subsidiaries are discussing administratively and in court the demand, by several municipalities, of payment of ISS on various revenues arising from operations that are not usually classified as services rendered. As of December 31, 2021, the amount was approximately R$4,146 million.

Non-Approved Compensation - the Bank and its affiliates are discussing administratively and judicially with the Federal Revenue Service the non-approval of tax offsets with credits arising from overpayments or undue payments. As of December 31, 2021, the amount was approximately R$5,351 million.

Amortization of Banco Real's Goodwill - the Federal Revenue Service of Brazil issued a tax assessment notice against the Bank to demand the payment of IRPJ and CSLL, including late payment charges, for the 2009 base period. The Tax Authorities considered that the goodwill related to the acquisition of Banco Real, amortized before its merger, could not be deducted by Banco Santander for tax purposes. The tax assessment notice was duly challenged and we are currently awaiting judgment before the CARF. As of December 31, 2021, the amount was approximately R$1,466 million.

Losses on Credit Operations - the Bank and its subsidiaries challenged the tax assessments issued by the Federal Revenue of Brazil alleging the improper deduction of losses on credit operations from the IRPJ and CSLL calculation bases for allegedly not complying with the requirements of applicable laws. As of December 31, 2021, the amount was approximately R$1,176 million.

Use of CSLL Tax Loss and Negative Basis– Tax assessment notices issued by the Brazilian Federal Revenue Service in 2009 for alleged undue compensation of CSLL tax loss and negative basis, as a result of tax assessment notices issued in previous periods. Awaiting judgment at the administrative level. As of December 31, 2021, the amount was approximately R$1,093 million.

Amortization of Banco Sudameris Goodwill- the tax authorities issued tax assessment notices to demand the payments of IRPJ and CSLL, including late payment charges, referring to the tax deduction of the amortization of the goodwill paid on the acquisition of Banco Sudameris, referring to the base period 2007 to 2012. Banco Santander presented the respective administrative defenses, which were judged unfavorably. Currently, the processes are awaiting judgment at CARF. As of December 31, 2021, the amount was approximately R$659 million.

IRPJ and CSLL - Capital Gain - the Internal Revenue Service of Brazil issued a tax assessment notice against Santander Seguros (legal successor of ABN AMRO Brasil Dois Participações SA (AAB Dois Par) charging income tax and social contribution related to the fiscal year de 2005. The Federal Revenue Service of Brazil claims that the capital gain on the sale of the shares of Real Seguros SA and Real Vida e Previdência SA by AAB Dois Par should be taxed at a rate of 34.0% instead of 15.0 %. The assessment was challenged administratively based on the understanding that the tax treatment adopted in the transaction was in accordance with current tax legislation and the capital gain was duly taxed. The administrative proceeding ended unfavorably to the Company. In July 2020, the Company filed a lawsuit seeking to cancel the debt. The lawsuit is awaiting judgment. Banco Santander is responsible for any adverse outcome in this proceeding as the former controlling shareholder of the Zurich Santander Brasil Seguros e Previdência S.A. As of December 31, 2021, the amount was approximately R$496 million.

Labor claims classified as possible loss totaled R$267 million in the Consolidated, excluding the process below:

Readjustment of the Pension Supplements of Banesprev by the IGPDI – action filed in 2002 in the Federal Court by the Association of Retired Employees of the Bank of the State of São Paulo requesting the readjustment of the pension supplementation by the IGPDI for Banespa retirees who have been admitted until May 22 of 1975. The judgment granted the correction, but only in periods in which no other form of adjustment was applied. The Bank and Banesprev appealed this decision and the appeals are still pending judgment. In Provisional Execution, calculations were presented by the Bank and Banesprev due to the exclusion of participants who, among other reasons, appear as plaintiffs in other actions or have already had some type of readjustment. The amount involved is not disclosed due to the current procedural stage of the case and potentially affecting the progress of the action.

Liabilities related to civil lawsuits with possible risk of loss totaled R$2,380 million in the Consolidated, with the main lawsuits:

Indemnity Action Arising from Banco Bandepe - related to the loan agreement under appeal by the Superior Court of Justice (STJ).

Indemnity Action Referring to Custody Services - provided by Banco Santander at an initial stage and still without a sentence.

Action Arising from Contractual Dispute- in the acquisition of Banco Geral do Comércio SA under appeal by the Court of Justice of the State of São Paulo (TJSP).

f) Other Legal Actions for the Liability of Former Controllers

Refer to tax, labor and civil lawsuits, in the amounts of R$496 (12/31/2020 - R$496) in the Bank and in the Consolidated, recorded in other liabilities (Note 19) for which the former controllers of Banks and acquired companies are responsible. Based on the signed contracts, these shares are guaranteed full reimbursement by the former controlling shareholders, whose respective rights were recorded in other assets (Note 12).

# 21. Stockholders’ Equity

a) Capital

According to the Bylaws, Banco Santander's capital stock may be increased up to the limit of the authorized capital, regardless of statutory amendment, upon resolution of the Board of Directors and through the issuance of up to 9,090,909,090 (nine billion, ninety million, nine hundred and nine thousand and ninety) shares, subject to the legal limits established for the number of preferred shares. Any capital increase that exceeds this limit will require shareholder approval.

At the Extraordinary General Meeting held on March 31, 2021, it was approved in the context of the partial Spin-off of Santander Brasil, which resulted in the segregation of its shares issued by Getnet Acquirência e Serviços para Meios de Pagamentos SA (“Getnet”), with version from the spun-off portion to Getnet, the reduction of the share capital of Santander Brasil in the total amount of 2,000,000 (two billion reais), without the cancellation of shares, changing the share capital of Santander Brasil from 57,000,000 (fifty-seven billion reais) to 55,000,000 (fifty-five billion reais).

The share capital, fully subscribed and paid-in, is divided into registered, book-entry shares, with no par value.

|  |  |  |  |  |  |  |  |  |  |  | Thousands of Shares
|  |  |  |  |  | 12/31/2021 |  |  |  |  |  | 12/31/2020
|  | Common |  | Preferred |  | Total |  | Common |  | Preferred |  | Total
Brazilian Residents |  | 109,718 |  | 135,345 |  | 245,063 |  | 109,885 |  | 135,438 |  | 245,323
Foreign Residents |  | 3,708,977 |  | 3,544,491 |  | 7,253,468 |  | 3,708,810 |  | 3,544,398 |  | 7,253,208

Total |  | 3,818,695 |  | 3,679,836 |  | 7,498,531 |  | 3,818,695 |  | 3,679,836 |  | 7,498,531
(-) Treasury Shares |  | (15,755) |  | (15,755) |  | (31,510) |  | (18,829) |  | (18,829) |  | (37,658)
Total Outstanding |  | 3,802,940 |  | 3,664,081 |  | 7,467,021 |  | 3,799,866 |  | 3,661,007 |  | 7,460,873

b) Dividends and Interest on Capital

By-laws, shareholders are guaranteed a minimum dividend of 25% of net income for each year, adjusted in accordance with legislation. Preferred shares do not have voting rights and cannot be converted into common shares, but they have the same rights and advantages granted to common shares, in addition to priority in the distribution of dividends and an additional 10% on dividends paid to common shares, and in the reimbursement of capital, without premium, in case of dissolution of the Bank.

Dividends were calculated and paid in accordance with the Brazilian Corporate Law.

Before the Annual Shareholders' Meeting, the Board of Directors may decide on the declaration and payment of dividends on the profits earned, based on: (i) balance sheets or profit reserves existing in the last balance sheet or (ii) balance sheets issued in periods of less than six months, provided that the total dividends paid in each semester of the fiscal year does not exceed the amount of capital reserves. These dividends are fully imputed to the mandatory dividend.

CMN Resolution No. 4,885, of December 23, 2020, prohibited institutions authorized to operate by the Central Bank of Brazil to remunerate equity above the highest between: i) 30% of net income adjusted pursuant to item I of article 20 of Law No. 6.404/76; or ii) mandatory minimum dividends established by article 202 of Law 6,404/76, including in the form of Interest on Equity, until December 31, 2020. The rule also prohibited the reduction of the share capital, except in specific situations, and the increase in the remuneration of its officers, administrators and members of the Board of Directors and the Fiscal Council.

We present below the distribution of dividends and Interest on Equity made on December 31, 2021, and December 31, 2020.

|  |  |  |  |  |  |  |  |  |  |  |  |  | 12/31/2021
|  | In Thousands |  | Brazilian Real per Thousand Shares/Units
|  | of Brazilian Real |  | Gross |  | Net
|  |  |  | Common |  | Preferred |  | Unit |  | Common |  | Preferred |  | Unit
Dividends (1)(5) |  | 3,000,000 |  | 382.9809 |  | 421.2789 |  | 804.2597 |  | 382.9809 |  | 421.2789 |  | 804.2597
Interest on Capital (2)(5) |  | 3,400,000 |  | 434.0449 |  | 477.4494 |  | 911.4944 |  | 368.9382 |  | 405.8320 |  | 774.7702
Dividends (3)(5) |  | 3,000,000 |  | 382.9809 |  | 421.2789 |  | 804.2597 |  | 382.9809 |  | 421.2789 |  | 804.2597
Interest on Capital (4)(5) |  | 249,000 |  | 31.7868 |  | 34.9655 |  | 66.7524 |  | 27.0188 |  | 29.7207 |  | 56.7395
Total |  | 9,649,000 |  |  |  |  |  |  |  |  |  |  |  |

(1) Resolved by the Board of Directors on April 27, 2021, paid on June 02, 2021, without any remuneration as monetary restatement.

(2) Resolved by the Board of Directors on July 27, 2021, paid on September 03, 2021, without any remuneration as monetary restatement.

(3) Resolved by the Board of Directors on October 26, 2021, paid on December 3, 2021, without any remuneration as monetary restatement.

(4) Resolved by the Board of Directors on December 28, 2021, to be paid as of February 3, 2022, without any remuneration as monetary restatement.
(5) They were fully imputed to the mandatory minimum dividends to be distributed by the Bank for the year 2021.

|  |  |  |  |  |  |  |  |  |  |  |  |  | 12/31/2020
|  | In Thousands |  | Brazilian Real per Thousand Shares/Units
|  | of Brazilian Real |  | Gross |  | Net
|  |  |  | Common |  | Preferred |  | Unit |  | Common |  | Preferred |  | Unit
Interest on Capital (1)(6) |  | 890,000 |  | 113.7129 |  | 125.0842 |  | 238.7972 |  | 96.6560 |  | 106.3216 |  | 202.9776
Interest on Capital (2)(6) |  | 770,000 |  | 98.3793 |  | 108.2172 |  | 206.5965 |  | 83.6224 |  | 91.9846 |  | 175.6070
Interest on Capital (3)(6) |  | 1,000,000 |  | 127.7636 |  | 140.5400 |  | 268.3036 |  | 108.5991 |  | 119.4590 |  | 228.0580
Interest on Capital (4)(6) |  | 665,000 |  | 84.9626 |  | 93.4589 |  | 178.4214 |  | 72.2182 |  | 79.4400 |  | 151.6582
Dividends (5)(6) |  | 512,085 |  | 65.4257 |  | 71.9683 |  | 137.3940 |  | 65.4257 |  | 71.9683 |  | 137.3940
Total |  | 3,837,085 |  |  |  |  |  |  |  |  |  |  |  |

(1) Resolved by the Board of Directors on April 27, 2020, paid on June 24, 2020, without any remuneration as monetary restatement.

(2) Resolved by the Board of Directors on July 28, 2020, paid on September 25, 2020, without any remuneration as monetary restatement.

(3) Resolved by the Board of Directors on October 26, 2020, paid on December 23, 2020, without any remuneration as monetary restatement.

(4) Resolved by the Board of Directors on December 28, 2020, paid from February 1, 2021, without any remuneration as monetary restatement.

(5) Resolved by the Board of Directors on February 2, 2021, paid on March 3, 2021, without any remuneration as monetary restatement.
(6) They were fully imputed to the mandatory minimum dividends to be distributed by the Bank for the year 2020.

c) Reserves

The net income calculated, after deductions and legal provisions, will have the following destination:

Legal Reserve

According to the Brazilian corporate law, 5% for the constitution of the legal reserve, until it reaches 20% of the capital. This reserve is intended to ensure the integrity of the capital stock and can only be used to offset losses or increase capital.

Capital Reserve

The Bank's capital reserves are composed of: share premium reserve and other capital reserves, and can only be used to absorb losses that exceed retained earnings and profit reserves; redemption, reimbursement or acquisition of our own shares; incorporation to the share capital; or payment of dividends to preferred shares under certain circumstances.

Dividend Equalization Reserve

After the allocation of dividends, the balance, if any, may, upon proposal of the Executive Board and approved by the Board of Directors, be allocated to the formation of a reserve for equalization of dividends, which will be limited to 50% of the capital stock. This reserve is intended to guarantee funds for the payment of dividends, including in the form of interest on equity, or its advances, in order to maintain the flow of remuneration to shareholders.

d) Treasury Shares

At a meeting held on February 2, 2021, the Board of Directors approved, in continuity with the buyback program that expired on November 4, 2020, a new buyback program for Units and ADRs issued by Banco Santander, directly or through its branch in Cayman, for maintenance in treasury or subsequent sale.

The Buyback Program encompasses the acquisition of up to 36,956,402 Units, representing 36,956,402 common shares and 36,956,402 preferred shares, which corresponded, on December 31, 2020, to approximately 1% of the Bank's capital stock. As of December 31, 2020, Banco Santander had 355,661,814 common shares and 383,466,228 preferred shares outstanding.

The repurchase is aimed at (1) maximizing the generation of value for shareholders through efficient management of the capital structure; and (2) enable the payment of administrators, management-level employees and other employees of the Bank and companies under its control, under the terms of the Long-Term Incentive Plans. The term of the Buyback Program is up to 18 months from February 3, 2021, ending on August 2, 2022.

|  |  |  | Bank/Consolidated
|  |  |  | Thousands of Shares
|  | 12/31/2021 |  | 12/31/2020
|  | Quantity |  | Quantity
|  | Units |  | Units
Treasury Shares at Beginning of the Period |  | 18,829 |  | 16,702
Shares Acquisitions |  | 91 |  | 5,052
Payment - Share-Based Compensation |  | (3,165) |  | (2,925)
Treasury Shares at Beginning of the Period |  | 15,755 |  | 18,829
Subtotal - Treasury Shares in Thousands of Reais |  | R$711,268 |  | R$789,587
Issuance Cost in Thousands of Reais |  | R$ 1,771 |  | R$ 1,771
Balance of Treasury Shares in Thousands of Reais |  | R$713,039 |  | R$791,358
Cost/Share Price |  | Units |  | Units
Minimum Cost (*) |  | 7.55 |  | 7.55
Weighted Average Cost (*) |  | 33.86 |  | 33.24
Maximum Cost (*) |  | 49.55 |  | 49.55
Share Price |  | 29.98 |  | 44.83

(*) Considering since the beginning of operations on the stock exchange.

e) Minority Interest

|  | Stockholders’ Equity |  |  |  |  |  | Non Controlling Interest
|  | 12/31/2021 |  | 12/31/2020 |  |  | 01/01 to 12/31/2021 |  |  | 01/01 to 12/31/2020
Banco RCI Brasil S.A. |  | 916,393 |  | 844,805 |  |  | 94,649 |  |  | 108,578
Banco Hyundai Capital Brasil S.A. |  | 177,880 |  | 162,010 |  |  | 15,905 |  |  | 13,537
Banco PSA |  | 129,975 |  | 136,806 |  |  | 13,375 |  |  | 12,308
Rojo Entretenimento S.A. |  | 6,939 |  | 7,087 |  |  | (147) |  |  | (159)
Santander Leasing |  | - |  | - |  |  | - |  |  | (877)
GIRA |  | 3,109 |  | - |  |  | 1,569 |  |  | -
TORO Corretora |  | 22,948 |  | - |  |  | (4,402) |  |  | -
Total |  | 1,257,244 |  | 1,150,708 |  |  | 120,949 |  |  | 133,387

# 22. Related Parties

a) Remuneration of Key Management Personnel

The Bank's Board of Directors' Meeting held on March 26, 2021 approved, in accordance with the favorable recommendation of the Compensation Committee, the proposal for maximum global compensation for Managers (Board of Directors and Executive Board) for the year 2021, in the amount of up to R$433,940 (four hundred and thirty-three million, nine hundred and forty thousand reais),

comprising fixed, variable and share-based compensation and other benefits. The proposal was discussed at the Annual General Meeting (AGM) held on April 30, 2021.

a.1) Long Term Benefits

The Bank, like Banco Santander Spain, as well as other subsidiaries around the world of Grupo Santander, has long-term remuneration programs linked to the performance of the market price of its shares, based on the achievement of targets.

a.2) Short Term Benefits

The table below shows the salaries and fees of the Board of Directors and Executive Board and refers to the amount recognized as an expense in the periods ended December 31, 2021 and 2020, by Banco Santander and its subsidiaries to its Directors for the positions they hold at Banco Santander and other companies of the Santander Conglomerate.

The amounts related to the Variable and Share-Based Compensation will be paid in subsequent periods.

|  |  | 01/01 to 12/31/2021 |  |  | 01/01 to 12/31/2020
Fixed Compensation |  |  | 97,780 |  |  | 92,283
Variable Compensation - in cash |  |  | 115,723 |  |  | 83,352
Variable Compensation - in shares |  |  | 94,607 |  |  | 81,306
Others |  |  | 68,599 |  |  | 48,783
Total Short-Term Benefits |  |  | 376,708 |  |  | 305,724
Variable Compensation - in cash |  |  | 101,837 |  |  | 98,407
Variable Compensation - in shares |  |  | 109,918 |  |  | 97,729
Total Long-Term Benefits |  |  | 211,716 |  |  | 196,136
Total |  |  | 588,466 |  |  | 501,860

Additionally, in 2021, charges on the remuneration of the Administration in the amount of R$32,719 (2020 - R$29,162) were collected.

b) Termination of the Agreement

The termination of the employment relationship with the Administrators, in the event of non-compliance with obligations or by the contractor's own will, does not entitle the holder to any financial compensation and the benefits acquired will be discontinued.

c) Credit Operations

The Bank and its subsidiaries may carry out transactions with related parties, in line with current legislation regarding articles 6 and 7 of CMN Resolution No. 4,693/18, article 34 of the "Law of Corporations" and the Policy for Transactions with Parties Santander Related, published on the Investor Relations website, being considered as related parties:

(1) its controllers, natural or legal persons, pursuant to art. 116 of the Corporations Law;

(2) its officers and members of statutory or contractual bodies;

(3) in relation to the persons mentioned in items (i) and (ii), their spouse, partner and relatives, consanguineous or related, up to the second degree;

(4) natural persons with a qualified equity interest in its capital;

(5) legal entities with a qualified equity interest in its capital;

(6) legal entities in whose capital, directly or indirectly, a Santander Financial Institution holds a qualified shareholding;

(7) legal entities in which a Santander Financial Institution has effective operational control or preponderance in resolutions, regardless of ownership interest; and

(8) legal entities that have a director or member of the Board of Directors in common with a Santander Financial Institution.

d) Ownership Interest

The table below shows the direct interest (common and preferred shares):

|  |  |  |  |  |  |  |  |  |  |  | Shares in Thousands
|  |  |  |  |  |  |  |  |  |  |  | 12/31/2021
Stockholders |  | Common Shares |  | Common Shares (%) |  | Preferred Shares |  | Preferred Shares (%) |  | Total Shares |  | Total Shares (%)
Sterrebeeck B.V. (1) |  | 1,809,583 |  | 47.4% |  | 1,733,644 |  | 47.1% |  | 3,543,227 |  | 47.3%
Grupo Empresarial Santander, S.L. (GES) (1) | 1,627,891 |  | 42.6% |  | 1,539,863 |  | 41.9% |  | 3,167,754 |  | 42.2%

Banco Santander, S.A. (1) |  | 2,696 |  | 0.1% |  | - |  | 0.0% |  | 2,696 |  | 0.0%
Directors (*) |  | 4,939 |  | 0.1% |  | 5,029 |  | 0.1% |  | 9,968 |  | 0.1%
Others |  | 357,831 |  | 9.4% |  | 385,545 |  | 10.5% |  | 743,376 |  | 9.9%
Total Outstanding |  | 3,802,940 |  | 99.6% |  | 3,664,081 |  | 99.6% |  | 7,467,021 |  | 99.6%
Treasury Shares |  | 15,755 |  | 0.4% |  | 15,755 |  | 0.4% |  | 31,510 |  | 0.4%
Total |  | 3,818,695 |  | 100.0% |  | 3,679,836 |  | 100.0% |  | 7,498,531 |  | 100.0%
Free Float (2) |  | 357,830 |  | 9.4% |  | 385,544 |  | 10.5% |  | 743,374 |  | 9.9%
|  |  |  |  |  |  |  |  |  |  |  | Shares in Thousands
|  |  |  |  |  |  |  |  |  |  |  | 12/31/2020
Stockholders |  | Common Shares |  | Common Shares (%) |  | Preferred Shares |  | Preferred Shares (%) |  | Total Shares |  | Total Shares (%)
Sterrebeeck B.V. (1) |  | 1,809,583 |  | 47.4% |  | 1,733,644 |  | 47.1% |  | 3,543,227 |  | 47.3%
GES (1) |  | 1,627,891 |  | 42.6% |  | 1,539,863 |  | 41.8% |  | 3,167,755 |  | 42.2%
Banco Santander, S.A. (1) |  | 2,696 |  | 0.07% |  | - |  | 0.0% |  | 2,696 |  | 0.0%
Employees |  | 2,046 |  | 0.05% |  | 2,046 |  | 0.06% |  | 4,092 |  | 0.1%
Directors (*) |  | 4,034 |  | 0.11% |  | 4,034 |  | 0.11% |  | 8,067 |  | 0.1%
Others |  | 353,616 |  | 9.3% |  | 381,420 |  | 10.4% |  | 735,036 |  | 9.8%
Total Outstanding |  | 3,799,866 |  | 99.5% |  | 3,661,007 |  | 99.5% |  | 7,460,873 |  | 99.5%
Treasury Shares |  | 18,829 |  | 0.5% |  | 18,829 |  | 0.5% |  | 37,658 |  | 0.5%
Total |  | 3,818,695 |  | 100.0% |  | 3,679,836 |  | 100.0% |  | 7,498,531 |  | 100.0%
Free Float (2) |  | 355,662 |  | 9.3% |  | 383,466 |  | 10.4% |  | 739,128 |  | 9.9%

(1) Companies of the Santander Spain Group.

(2) Composed of Officials and Others.

(*) None of the members of the Board of Directors and the Executive Board holds 1.0% or more of any class of shares.

e) Related Party Transactions

Santander has a Policy for Transactions with Related Parties approved by the Board of Directors, which aims to ensure that all transactions defined in the policy are carried out with the interests of Banco Santander and its shareholders in mind. The policy defines powers for approval of certain transactions by the Board of Directors. The rules provided for are also applied to all employees and managers of Banco Santander and its subsidiaries.

Transactions and remuneration for services with related parties are carried out in the normal course of business and under commutative conditions, including interest rates, terms and guarantees, and do not involve greater risks than normal collection risks or present other disadvantages.

|  |  |  |  |  |  |  |  |  | Bank |  |  |  |  |  |  |  |  |  | Consolidated
|  | Assets |  |  | Income |  | Assets |  |  | Income |  | Assets |  |  | Income |  | Assets |  |  | Income
|  | (Liabilities) |  |  | (Expenses) |  | (Liabilities) |  |  | (Expenses) |  | (Liabilities) |  |  | (Expenses) |  | (Liabilities) |  |  | (Expenses)
|  | 12/31/2021 |  |  | 01/01 to 12/31/2021 |  | 12/31/2020 |  |  | 01/01 to 12/31/2020 |  | 12/31/2021 |  |  | 01/01 to 12/31/2021 |  | 12/31/2020 |  |  | 01/01 to 12/31/2020
Cash |  | 10,211,868 |  |  | - |  | 12,913,526 |  |  | - |  | 10,211,868 |  |  | - |  | 12,896,899 |  |  | -
Banco Santander Espanha (1) |  | 1,479,611 |  |  | - |  | 2,475,959 |  |  | - |  | 1,479,611 |  |  | - |  | 2,459,332 |  |  | -
Santander Bank, National Association |  | 8,538,165 |  |  | - |  | 10,315,450 |  |  | - |  | 8,538,165 |  |  | - |  | 10,315,450 |  |  | -
Others |  | 194,092 |  |  | - |  | 122,117 |  |  | - |  | 194,092 |  |  | - |  | 122,117 |  |  | -
Interbank Investments |  | 85,460,227 |  |  | 4,337,014 |  | 74,635,984 |  |  | 3,277,632 |  | - |  |  | 6,237 |  | - |  |  | 8,469
Aymoré CFI (2) |  | 54,209,834 |  |  | 2,895,268 |  | 45,970,236 |  |  | 2,455,426 |  | - |  |  | - |  | - |  |  | -
Banco Santander Espanha (1) |  | - |  |  | 6,237 |  | - |  |  | 8,442 |  | - |  |  | 6,237 |  | - |  |  | 8,469
Banco PSA |  | 1,070,932 |  |  | 42,796 |  | 1,012,276 |  |  | 1,983 |  | - |  |  | - |  | - |  |  | -
Banco RCI Brasil S.A. (2) |  | 2,761,443 |  |  | 172,753 |  | 3,565,452 |  |  | 185,646 |  | - |  |  | - |  | - |  |  | -
Santander Leasing (2) |  | 298,548 |  |  | 6,132 |  | - |  |  | - |  | - |  |  | - |  | - |  |  | -
Bandepe (2) |  | 23,372,820 |  |  | 1,022,882 |  | 21,429,296 |  |  | 517,065 |  | - |  |  | - |  | - |  |  | -
Others |  | 3,746,650 |  |  | 190,946 |  | 2,658,724 |  |  | 109,070 |  | - |  |  | - |  | - |  |  | -
Securities |  | 1,277,596 |  |  | 129,313 |  | 312,469 |  |  | 9,656 |  | 955,737 |  |  | 76,004 |  | - |  |  | -
Santander Leasing (2) |  | 320,303 |  |  | 7,834 |  | 312,469 |  |  | 9,656 |  | - |  |  | - |  | - |  |  | -
Apolo Fundo de Investimento em Direitos Creditórios |  | 955,737 |  |  | 76,004 |  | - |  |  | - |  | 955,737 |  |  | 76,004 |  | - |  |  | -
Verbena FCVS - Fundo de Investimento em Direitos Creditórios |  | 1,556 |  |  | 45,475 |  | - |  |  | - |  | - |  |  | - |  | - |  |  | -
Derivative Financial Instruments - Net |  | (3,435,295) |  |  | (3,084,822) |  | (2,584,973) |  |  | (1,722,000) |  | (2,777,638) |  |  | (1,708,431) |  | (1,103,558) |  |  | (620,890)
Fundo de Investimento Santillana (3) |  | 107,223 |  |  | (3,666) |  | (130,038) |  |  | (345,874) |  | 107,223 |  |  | (3,666) |  | (130,038) |  |  | (345,874)
Banco Santander Espanha (1) |  | (511,355) |  |  | (1,704,913) |  | (978,700) |  |  | (146,870) |  | (2,884,861) |  |  | (1,704,913) |  | (973,520) |  |  | (275,393)
Santander FI Amazonas (2) |  | 258,895 |  |  | 94,817 |  | 162,513 |  |  | 182,550 |  | - |  |  | - |  | - |  |  | -
Santander FI Hedge Strategies (2) |  | 863,582 |  |  | (315,330) |  | (1,052,385) |  |  | 1,087,711 |  | - |  |  | - |  | - |  |  | -
Santander Hermes Multi Créd Priv Infra Fundo de Investimentos |  | 55,266 |  |  | (13,360) |  | 92,370 |  |  | (8,414) |  | - |  |  | - |  | - |  |  | -
Santander FI Diamantina (2) |  | (4,184,728) |  |  | (1,141,807) |  | (678,733) |  |  | (2,482,570) |  | - |  |  | - |  | - |  |  | -
Santander Fundo de Investimento Unix Multimercado Crédito Privado (3) |  | (24,178) |  |  | (665) |  | - |  |  | - |  | - |  |  | - |  | - |  |  | -
Key Management Personnel |  | - |  |  | 102 |  | - |  |  | 377 |  | - |  |  | 148 |  | - |  |  | 377
Others |  | - |  |  | - |  | - |  |  | (8,910) |  | - |  |  | - |  | - |  |  | -
Interfinancial Relations |  | 18,859,193 |  |  | 4,010 |  | 17,447,264 |  |  | 9,869 |  | 18,857,386 |  |  | 2,770 |  | - |  |  | -
Getnet S.A. (5) |  | 18,857,386 |  |  | 2,770 |  | 17,444,497 |  |  | 6,585 |  | 18,857,386 |  |  | 2,770 |  | - |  |  | -
Santander Leasing (2) |  | 1,807 |  |  | 1,240 |  | 2,767 |  |  | 3,284 |  | - |  |  | - |  | - |  |  | -
Loan Operations |  | 3,250,610 |  |  | 562 |  | 1,149,718 |  |  | 1,082 |  | 3,548,366 |  |  | 1,680 |  | 98,522 |  |  | 1,107
Getnet S.A. |  | 3,450,923 |  |  | - |  | 1,051,358 |  |  | - |  | 3,450,923 |  |  | - |  | - |  |  | -
Gestora de Inteligência de Crédito |  | 67,511 |  |  | - |  | 66,667 |  |  | - |  | 67,511 |  |  | - |  | 66,667 |  |  | -
Loop Gestão de Pátios S.A. |  | 9,861 |  |  | - |  | 11,966 |  |  | - |  | 9,861 |  |  | - |  | 11,966 |  |  | -
PI Distribuidora de Títulos e Valores Mobiliários S.A. |  | - |  |  | (863) |  | - |  |  | - |  | - |  |  | - |  | - |  |  | -
Gestão Integrada de Recebíveis do Agronegócio S.A. |  | (276,749) |  |  | - |  | - |  |  | - |  | - |  |  | - |  | - |  |  | -
Paytec Tecnologia em Pagamentos Ltda. |  | 1,527 |  |  | - |  | - |  |  | - |  | - |  |  | - |  | - |  |  | -
Liderança Serviços Especializados em Cobranças LTDA. |  | (2,501) |  |  | - |  | - |  |  | - |  | - |  |  | - |  | - |  |  | -
CAR10 TECNOLOGIA E INFORMAÇÃO S.A. |  | 38 |  |  | - |  | - |  |  | - |  | 38 |  |  | - |  | - |  |  | -
Key Management Personnel |  | - |  |  | 1,425 |  | 19,727 |  |  | 1,082 |  | 20,033 |  |  | 1,680 |  | 19,889 |  |  | 1,107
Other Assets - Trading Account |  | 293,413 |  |  | - |  | 260,899 |  |  | - |  | 21,811 |  |  | - |  | 18,568 |  |  | -
Aymoré CFI (2) |  | 249,285 |  |  | - |  | 176,537 |  |  | - |  | - |  |  | - |  | - |  |  | -
Santander CCVM (2) |  | 4,846 |  |  | - |  | 5,179 |  |  | - |  | - |  |  | - |  | - |  |  | -
Bandepe (2) |  | - |  |  | - |  | 855 |  |  | - |  | - |  |  | - |  | - |  |  | -
Banco RCI Brasil S.A. (2) |  | - |  |  | - |  | 20,536 |  |  | - |  | - |  |  | - |  | - |  |  | -
Santander Brasil Tecnologia S.A. (2) |  | 3,772 |  |  | - |  | 13,438 |  |  | - |  | - |  |  | - |  | - |  |  | -
Santander Leasing (2) |  | 21,235 |  |  | - |  | 3,507 |  |  | - |  | - |  |  | - |  | - |  |  | -
Santander Corretora de Seguros (2) |  | 9,964 |  |  | - |  | 5,459 |  |  | - |  | - |  |  | - |  | - |  |  | -
Webmotors S.A. |  | - |  |  | - |  | - |  |  | - |  | 21,763 |  |  | - |  | 18,455 |  |  | -
Getnet S.A. |  | - |  |  | - |  | 29,488 |  |  | - |  | - |  |  | - |  | - |  |  | -
Others |  | 4,311 |  |  | - |  | 5,900 |  |  | - |  | 48 |  |  | - |  | 113 |  |  | -
Other Assets - Trading and Intermediation of Values |  | 531,612 |  |  | 1,297 |  | 342,974 |  |  | 5,465 |  | 531,612 |  |  | 1,297 |  | 342,974 |  |  | 90,713
Banco Santander Espanha (1) |  | 531,612 |  |  | 1,297 |  | 342,974 |  |  | 5,465 |  | 531,612 |  |  | 1,297 |  | 342,974 |  |  | 90,713
Other Assets - Foreign Exchange Portfolio Net |  | (159,043) |  |  | 50,078 |  | (353,445) |  |  | 665,980 |  | (159,043) |  |  | 50,078 |  | (353,445) |  |  | 665,980
Banco Santander Espanha (1) |  | (159,043) |  |  | 49,765 |  | (353,445) |  |  | 665,800 |  | (159,043) |  |  | 49,765 |  | (353,445) |  |  | 665,800
Key Management Personnel |  | - |  |  | 313 |  | - |  |  | 180 |  | - |  |  | 313 |  | - |  |  | 180
Other Assets - Income Receivable |  | - |  |  | 1,904,465 |  | 892,761 |  |  | 2,055,724 |  | - |  |  | 3,229,825 |  | 915,137 |  |  | 3,009,987
Zurich Santander Brasil Seguros e Previdência S.A. (6) |  | - |  |  | 1,904,420 |  | 835,680 |  |  | 1,826,204 |  | - |  |  | 3,229,780 |  | 858,056 |  |  | 2,768,088
CAR10 TECNOLOGIA E INFORMAÇÃO S.A. |  | - |  |  | 45 |  | - |  |  | - |  | - |  |  | 45 |  | - |  |  | -
Zurich Santander Brasil Seguros S.A. (6) |  | - |  |  | - |  | 57,081 |  |  | 229,520 |  | - |  |  | - |  | 57,081 |  |  | 241,899
Receivable from Affiliates |  | 27,068 |  |  | 878,829 |  | 20,353 |  |  | 594,691 |  | 5,894 |  |  | 183,105 |  | 13,681 |  |  | 8,481
Santander Capitalização S.A. (2) |  | - |  |  | 4,606 |  | - |  |  | - |  | - |  |  | - |  | - |  |  | -
Aymoré CFI (2) |  | - |  |  | 404,671 |  | - |  |  | 393,603 |  | - |  |  | - |  | - |  |  | -
Santander FI Diamantina (2) |  | - |  |  | 41,298 |  | 1,604 |  |  | 34,502 |  | - |  |  | - |  | - |  |  | -
Santander Brasil Gestão de Recursos Ltda. (3) |  | 169 |  |  | 4,185 |  | 169 |  |  | 6,558 |  | 169 |  |  | 4,185 |  | 169 |  |  | 6,558
Super Pagamentos e Administração de Meios Eletrônicos S.A. |  | - |  |  | 885 |  | - |  |  | - |  | 191 |  |  | 3,170 |  | 532 |  |  | -
Santander Brasil Tecnologia S.A. (2) |  | - |  |  | 978 |  | - |  |  | 978 |  | - |  |  | - |  | - |  |  | -
Santander CCVM (2) |  | - |  |  | 75,218 |  | - |  |  | 67,742 |  | - |  |  | - |  | - |  |  | -
Gesban Servicios Administrativos Globales, S.L |  | - |  |  | - |  | - |  |  | - |  | 23 |  |  | - |  | 23 |  |  | -
Santander Brasil Consórcio |  | 872 |  |  | 32,481 |  | 419 |  |  | 22,380 |  | - |  |  | - |  | - |  |  | -
Santander Corretora de Seguros (2) |  | - |  |  | 46,780 |  | - |  |  | 33,599 |  | - |  |  | - |  | - |  |  | -
Esfera Fidelidade S.A. |  | 2,109 |  |  | 3,880 |  | 4,757 |  |  | 3,080 |  | - |  |  | - |  | - |  |  | -
Banco Santander Espanha (1) |  | 4,516 |  |  | - |  | 4,516 |  |  | - |  | 4,516 |  |  | - |  | 4,516 |  |  | -
Santander Digital Assets, SL |  | - |  |  | - |  | - |  |  | - |  | - |  |  | - |  | 8,105 |  |  | -
Santander FI Hedge Strategies (2) |  | 15,474 |  |  | 8,154 |  | 6,795 |  |  | 3,912 |  | - |  |  | - |  | - |  |  | -
Getnet S.A. (5) |  | 320 |  |  | 103,946 |  | 632 |  |  | 6,352 |  | 655 |  |  | 169,425 |  | - |  |  | -
Santander Caceis Brasil DTVM S.A. (3) |  | - |  |  | 3,898 |  | - |  |  | - |  | - |  |  | 3,898 |  | - |  |  | -
Santander fundo de Investimento Diamantina Multimercado Crédito Privado Investimento no exterior (2) |  | - |  |  | 41,298 |  | - |  |  | - |  | - |  |  | - |  | - |  |  | -
Others |  | 3,608 |  |  | 106,551 |  | 1,461 |  |  | 21,985 |  | 340 |  |  | 2,427 |  | 336 |  |  | 1,923
Non Operating Income |  | - |  |  | - |  | - |  |  | 168,588 |  | - |  |  | - |  | - |  |  | 168,588
Super Pagamentos e Administração de Meios Eletrônicos S.A. |  | - |  |  | - |  | - |  |  | 168,588 |  | - |  |  | - |  | - |  |  | 168,588
Other Assets - Others |  | 2,973,160 |  |  | 116,936 |  | 1,452,382 |  |  | 226,434 |  | 2,886,739 |  |  | 108,868 |  | 1,486,386 |  |  | 149,424
Gesban Servicios Administrativos Globales, S.L. |  | - |  |  | - |  | - |  |  | - |  | - |  |  | - |  | - |  |  | 8,006
Banco Santander Espanha (1) |  | 1,923,587 |  |  | - |  | 1,444,376 |  |  | - |  | 1,923,657 |  |  | - |  | 1,486,341 |  |  | (35)
Santander Capitalização S.A. (2) |  | 5,264 |  |  | 71,317 |  | 4,416 |  |  | 175,657 |  | - |  |  | - |  | - |  |  | -
Banco Santander International (3) |  | - |  |  | 43,375 |  | - |  |  | 45,261 |  | - |  |  | 43,375 |  | - |  |  | 45,261
Santander Caceis Brasil DTVM S.A. (3) |  | - |  |  | 1,567 |  | - |  |  | 1,499 |  | - |  |  | 1,567 |  | - |  |  | 8,525
Santander Brasil Gestão de Recursos Ltda. (3) |  | - |  |  | - |  | - |  |  | - |  | - |  |  | 752 |  | - |  |  | 1,703
Key Management Personnel |  | 1 |  |  | 258 |  | - |  |  | 165 |  | 1 |  |  | 399 |  | - |  |  | 308
Others |  | 1,044,308 |  |  | 419 |  | 3,590 |  |  | 3,852 |  | 963,081 |  |  | 62,775 |  | 45 |  |  | 85,656
Deposits |  | (28,958,024) |  |  | 125,034 |  | (23,503,316) |  |  | 1,183,447 |  | (1,535,726) |  |  | (7,304) |  | (946,054) |  |  | (22,655)
Bandepe |  | 561 |  |  | - |  | - |  |  | - |  | - |  |  | - |  | - |  |  | -
Santander Leasing (2) |  | (58,271) |  |  | (2,592) |  | (81,354) |  |  | (4,142) |  | - |  |  | - |  | - |  |  | -
Banco Santander Espanha (1) |  | (10,995) |  |  | - |  | (13,156) |  |  | - |  | (10,995) |  |  | - |  | (55,059) |  |  | -
Aymoré CFI (2) |  | (1,376,716) |  |  | (38,792) |  | (190,480) |  |  | (26,628) |  | - |  |  | - |  | - |  |  | -
Zurich Santander Brasil Seguros e Previdência S.A. (6) |  | (63,864) |  |  | - |  | (64,836) |  |  | - |  | (63,864) |  |  | - |  | (64,836) |  |  | -
Zurich Santander Brasil Seguros S.A. (6) |  | (9,379) |  |  | - |  | (6,443) |  |  | - |  | - |  |  | - |  | (6,443) |  |  | -
Santander Brasil Gestão de Recursos Ltda. (3) |  | (44,141) |  |  | (1,159) |  | (335) |  |  | (5,664) |  | (44,141) |  |  | (1,159) |  | (335) |  |  | (5,664)
Fundo de Investimento Santillana (3) |  | (15) |  |  | - |  | (44) |  |  | - |  | (15) |  |  | - |  | (44) |  |  | -
Santander Brasil Tecnologia S.A. (2) |  | (86) |  |  | - |  | (780) |  |  | (53) |  | - |  |  | - |  | - |  |  | -
Banco RCI Brasil S.A. (2) |  | (31,934) |  |  | (6,281) |  | (226,046) |  |  | (6,226) |  | - |  |  | - |  | - |  |  | -
Santander Caceis Brasil DTVM S.A. (3) |  | (722,783) |  |  | 25,372 |  | (581,543) |  |  | (14,645) |  | (722,783) |  |  | - |  | (581,543) |  |  | (14,645)
Getnet S.A. |  | (372,151) |  |  | - |  | (242,391) |  |  | - |  | (372,151) |  |  | - |  | - |  |  | -
Santander FI Diamantina (2) |  | (25,670,214) |  |  | 158,424 |  | (21,416,222) |  |  | 1,250,951 |  | - |  |  | - |  | - |  |  | -
Super Pagamentos e Administração de Meios Eletrônicos S.A. |  | (21,725) |  |  | - |  | (36,390) |  |  | (1) |  | (21,725) |  |  | - |  | (36,390) |  |  | (1)
Liderança Serviços Especializados em Cobranças LTDA. |  | (6,940) |  |  | (47) |  | - |  |  | - |  | - |  |  | - |  | - |  |  | -
Key Management Personnel |  | (28,409) |  |  | (1,426) |  | (36,705) |  |  | (823) |  | (28,672) |  |  | (1,428) |  | (36,762) |  |  | (823)
Others |  | (540,962) |  |  | (8,465) |  | (606,591) |  |  | (9,322) |  | (271,380) |  |  | (4,717) |  | (164,642) |  |  | (1,522)
Repurchase Commitments |  | (7,262,118) |  |  | (249,964) |  | (7,160,549) |  |  | (227,283) |  | (1,003,908) |  |  | (37,118) |  | (2,186,105) |  |  | (53,243)
Santander FI Amazonas (3) |  | (313,848) |  |  | (19,011) |  | (501,984) |  |  | (7,020) |  | - |  |  | - |  | - |  |  | -
Super Pagamentos e Administração de Meios Eletrônicos S.A. |  | 241,716 |  |  | (6,916) |  | - |  |  | (1,806) |  | 241,716 |  |  | (6,916) |  | - |  |  | (1,806)
Santander Leasing (2) |  | - |  |  | (1,663) |  | (151,438) |  |  | (35,980) |  | - |  |  | - |  | - |  |  | -
Santander CCVM (2) |  | (277,092) |  |  | (9,747) |  | (202,222) |  |  | (3,732) |  | - |  |  | - |  | - |  |  | -
Santander FI SBAC (2) |  | (2,128,150) |  |  | (95,691) |  | (2,797,429) |  |  | (85,927) |  | - |  |  | - |  | - |  |  | -
Santander FI Guarujá (2) |  | (456,680) |  |  | (17,797) |  | (472,220) |  |  | (11,124) |  | - |  |  | - |  | - |  |  | -
Santander FI Diamantina (2) |  | (765,265) |  |  | (11,818) |  | (460,034) |  |  | (9,123) |  | - |  |  | - |  | - |  |  | -
Santander FI Unix (2) |  | (26,745) |  |  | (1,123) |  | (25,457) |  |  | (2,582) |  | - |  |  | - |  | - |  |  | -
Fundo de Investimento Santillana (3) |  | (2,277,832) |  |  | (30,024) |  | (2,186,104) |  |  | (50,815) |  | (1,241,109) |  |  | (30,024) |  | (2,186,104) |  |  | (50,815)
Key Management Personnel |  | - |  |  | (5) |  | - |  |  | (9) |  | - |  |  | (5) |  | - |  |  | (9)
Others |  | (1,258,222) |  |  | (56,169) |  | (363,661) |  |  | (19,165) |  | (4,515) |  |  | (173) |  | (1) |  |  | (613)
Funds from Acceptance and Issuance of Securities |  | 128,214 |  |  | (6,150) |  | (117,368) |  |  | (3,825) |  | 128,593 |  |  | (6,195) |  | (117,368) |  |  | (3,825)
Key Management Personnel |  | 128,214 |  |  | (6,150) |  | (117,368) |  |  | (3,825) |  | 128,593 |  |  | (6,195) |  | (117,368) |  |  | (3,825)
Loan on Onlendings |  | 4,870,966 |  |  | (123,804) |  | (10,401,564) |  |  | (94,890) |  | (18,247,450) |  |  | (123,804) |  | (10,401,564) |  |  | (55,686)
Banco Santander Espanha (1) |  | (11,167,495) |  |  | (123,804) |  | (10,401,564) |  |  | (8,194) |  | (11,167,495) |  |  | (123,804) |  | (10,401,564) |  |  | (55,686)
Banco Santander México (4) |  | - |  |  | - |  | - |  |  | (86,696) |  | - |  |  | - |  | - |  |  | -
Santander FI Hedge Strategies (2) |  | (2,356,687) |  |  | - |  | - |  |  | - |  | - |  |  | - |  | - |  |  | -
Santander fundo de Investimento Diamantina Multimercado Crédito Privado Investimento no exterior |  | 25,475,103 |  |  | - |  | - |  |  | - |  | - |  |  | - |  | - |  |  | -
Getnet S.A. |  | (7,079,955) |  |  | - |  | - |  |  | - |  | (7,079,955) |  |  | - |  | - |  |  | -
Dividends and Bonuses in Paying |  | (564,528) |  |  | - |  | (508,491) |  |  | (10,185) |  | (564,786) |  |  | - |  | (508,491) |  |  | (10,185)
Banco Santander Espanha (1) |  | (73) |  |  | - |  | (195) |  |  | - |  | (73) |  |  | - |  | (195) |  |  | -
Sterrebeeck B.V. (2) |  | (100,418) |  |  | - |  | (268,406) |  |  | - |  | (100,418) |  |  | - |  | (268,406) |  |  | -
GES (1) (3) |  | (464,295) |  |  | - |  | (239,890) |  |  | - |  | (464,295) |  |  | - |  | (239,890) |  |  | -
Key Management Personnel |  | 258 |  |  | - |  | - |  |  | (10,185) |  | - |  |  | - |  | - |  |  | (10,185)
Payable from Affiliates |  | (370,541) |  |  | (2,040,001) |  | (361,599) |  |  | (1,663,389) |  | (272,941) |  |  | (1,315,108) |  | (82,479) |  |  | (1,232,400)
Santander Brasil Tecnologia S.A. (2) |  | - |  |  | (244,023) |  | (4,353) |  |  | (236,972) |  | - |  |  | - |  | - |  |  | -
Banco Santander Espanha (1) |  | (241,640) |  |  | (242,721) |  | (202,787) |  |  | (717,403) |  | (241,661) |  |  | (242,721) |  | (21) |  |  | (717,403)
Santander Corretora de Seguros, Investimento e Serviços S.A (2) |  | (17,976) |  |  | (196,090) |  | (14,751) |  |  | (164,092) |  | - |  |  | - |  | - |  |  | -
Getnet S.A. |  | (4,627) |  |  | (509,819) |  | (17,573) |  |  | (26,576) |  | (5,183) |  |  | (514,362) |  | - |  |  | -
Santander Securities Services Brasil DTVM S.A. (3) |  | (12,286) |  |  | (56,482) |  | (9,373) |  |  | (52,379) |  | (12,286) |  |  | (56,482) |  | (9,373) |  |  | (52,379)
Santander Leasing (2) |  | (79,374) |  |  | - |  | (79,374) |  |  | - |  | - |  |  | - |  | - |  |  | -
Santander Tecnologia e Inovação Ltda |  | - |  |  | (202,266) |  | - |  |  | - |  | - |  |  | - |  | - |  |  | -
Santander Brasil Asset Management DTVM S.A (3) |  | - |  |  | - |  | - |  |  | - |  | - |  |  | - |  | (95) |  |  | (1,728)
Zurich Santander Brasil Seguros e Previdência S.A. (6) |  | - |  |  | - |  | - |  |  | - |  | - |  |  | 13,974 |  | (40,550) |  |  | (41,580)
Santander Global Technology, S.L., SOCI |  | (13,136) |  |  | (436,911) |  | (31,774) |  |  | (344,593) |  | (13,136) |  |  | (436,911) |  | (31,774) |  |  | (345,287)
Others |  | (1,502) |  |  | (151,689) |  | (1,614) |  |  | (121,374) |  | (675) |  |  | (78,606) |  | (666) |  |  | (74,023)
Subordinated Debts |  | (14,088,607) |  |  | (2,272,870) |  | (13,119,660) |  |  | (4,263,360) |  | (14,088,607) |  |  | (2,272,870) |  | (13,119,660) |  |  | (4,263,360)
Banco Santander Espanha (1) (4) |  | (14,088,607) |  |  | (2,272,870) |  | (13,119,660) |  |  | (4,263,360) |  | (14,088,607) |  |  | (2,272,870) |  | (13,119,660) |  |  | (4,263,360)
Donations |  | - |  |  | - |  | - |  |  | (17,000) |  | - |  |  | (17,830) |  | - |  |  | (19,630)
Instituto Escola Brasil |  | - |  |  | - |  | - |  |  | - |  | - |  |  | - |  | - |  |  | (700)
Santander Cultural |  | - |  |  | - |  | - |  |  | - |  | - |  |  | - |  | - |  |  | (330)
Fundação Sudameris |  | - |  |  | - |  | - |  |  | (17,000) |  | - |  |  | (16,430) |  | - |  |  | (17,000)
Fundação Santander |  | - |  |  | - |  | - |  |  | - |  | - |  |  | (1,400) |  | - |  |  | (1,600)
Other Liabilities - Others |  | (759,920) |  |  | (1,279,172) |  | (6,210,051) |  |  | (1,725,286) |  | (811,756) |  |  | (1,156,808) |  | (672,658) |  |  | (956,505)
Banco Santander Espanha (1) |  | - |  |  | - |  | - |  |  | (1,837) |  | - |  |  | - |  | - |  |  | (1,967)
TecBan |  | - |  |  | - |  | - |  |  | (364,349) |  | - |  |  | - |  | - |  |  | (364,349)
Santander Brasil Tecnologia S.A. (2) |  | - |  |  | (212,593) |  | - |  |  | (224,557) |  | - |  |  | - |  | - |  |  | -
Aquanima Brasil Ltda. (3) |  | - |  |  | (29,160) |  | - |  |  | (32,070) |  | - |  |  | (29,342) |  | - |  |  | (32,248)
Santander Caceis Brasil DTVM S.A. (3) |  | - |  |  | (22,024) |  | - |  |  | (2,994) |  | - |  |  | (22,024) |  | - |  |  | (2,994)
Zurich Santander Brasil Seguros e Previdência S.A. (6) |  | - |  |  | - |  | (17,713) |  |  | (17,713) |  | (28,801) |  |  | (32,348) |  | (38,135) |  |  | (38,483)
Getnet S.A. |  | (118,680) |  |  | (475,074) |  | (5,576,635) |  |  | (623,500) |  | (118,691) |  |  | (475,074) |  | - |  |  | -
Key Management Personnel |  | (639,507) |  |  | (528,181) |  | (615,469) |  |  | (440,912) |  | (664,264) |  |  | (588,613) |  | (633,276) |  |  | (502,042)
Others |  | (1,733) |  |  | (12,140) |  | (234) |  |  | (17,354) |  | - |  |  | (9,407) |  | (1,247) |  |  | (14,422)
Guarantees and Limits |  | 16,448 |  |  | 45 |  | 11,038 |  |  | 61 |  | 16,448 |  |  | 45 |  | 11,038 |  |  | 61
Key Management Personnel (7) |  | 16,448 |  |  | 45 |  | 11,038 |  |  | 61 |  | 16,448 |  |  | 45 |  | 11,038 |  |  | 61

(1) Controlling - Banco Santander is indirectly controlled by Banco Santander Spain (Notes 1 and 30.d), through its subsidiaries GES and Sterrebeeck B.V.

(2) Direct or indirect subsidiary of Banco Santander.

(3) Direct or indirect subsidiary of Banco Santander Spain.

(4) Refers to the portion acquired by the Controller from the PR Optimization Plan carried out in the first half of 2018.

(5) Corresponds to amounts receivable related to Acquisition.

(6) Significant Influence of Banco Santander Spain.

(7) Refers to the registration in clearing accounts of Guarantees and Limits of credit operations with Key Management Personnel.

# 23. Income from Services Rendered and Banking Fees

|  | Bank |  | Consolidated
| 01/01 to 12/31/2021 | 01/01 to 12/31/2020 | 01/01 to 12/31/2021 | 01/01 to 12/31/2020
Asset Management | 741,483 | 572,932 | 1,337,705 | 1,016,919
Checking Account Services | 3,805,750 | 3,960,855 | 3,812,189 | 3,965,551
Lending Operations and Income from Guarantees Provided | 1,155,341 | 1,060,892 | 1,510,200 | 1,437,600
Lending Operations | 485,729 | 429,133 | 840,588 | 805,841
Income Guarantees Provided | 669,612 | 631,759 | 669,612 | 631,759
Insurance Fees | 2,043,139 | 2,181,595 | 3,555,495 | 3,116,921
Cards (Debit and Credit) and Acquiring Services | 4,891,903 | 3,806,212 | 5,430,163 | 5,590,215
Collection | 1,491,865 | 1,477,704 | 1,511,741 | 1,471,121
Brokerage, Custody and Placement of Securities | 1,019,204 | 785,737 | 1,322,780 | 1,061,962
Others | 354,970 | 280,408 | 882,903 | 803,681
Total | 15,503,655 | 14,126,335 | 19,363,176 | 18,463,970

# 24. Personnel Expenses

|  | Bank |  | Consolidated
| 01/01 to 12/31/2021 | 01/01 to 12/31/2020 | 01/01 to 12/31/2021 | 01/01 to 12/31/2020
Compensation | 3,397,120 | 3,623,045 | 3,886,537 | 4,102,940
Charges | 1,377,279 | 1,305,790 | 1,611,376 | 1,535,348
Benefits | 1,203,198 | 1,243,870 | 1,500,931 | 1,428,339
Training | 48,705 | 43,723 | 55,557 | 50,800
Others | 1,165 | 3,706 | 76,753 | 59,790
Total | 6,027,467 | 6,220,134 | 7,131,154 | 7,177,217

# 25. Other Administrative Expenses

|  | Bank |  | Consolidated
| 01/01 to 12/31/2021 | 01/01 to 12/31/2020 | 01/01 to 12/31/2021 | 01/01 to 12/31/2020
Depreciation and Amortization | 3,637,533 | 2,641,934 | 3,822,494 | 3,094,511
Outsourced and Specialized Services | 2,282,474 | 2,067,985 | 2,472,714 | 2,623,065
Communications | 393,789 | 378,571 | 412,695 | 397,071
Data Processing | 3,115,410 | 2,873,538 | 2,769,084 | 2,758,541
Advertising, Promotions and Publicity | 452,289 | 487,437 | 609,403 | 637,787
Rentals | 857,909 | 794,433 | 864,685 | 811,875
Transportation and Travel | 89,575 | 83,442 | 118,093 | 104,400
Financial System Services | 311,069 | 257,523 | 383,846 | 329,637
Security and Money Transport | 537,952 | 565,601 | 540,069 | 566,957
Asset Maintenance and Upkeep | 301,533 | 281,407 | 311,971 | 314,261
Water, Electricity and Gas | 184,526 | 186,748 | 189,585 | 190,461
Materials | 107,374 | 67,117 | 122,151 | 79,439
Others | 922,630 | 651,794 | 913,675 | 892,390
Total | 13,194,063 | 11,337,530 | 13,530,465 | 12,800,395

# 26. Other Operating Income

|  | Bank |  | Consolidated
| 01/01 to 12/31/2021 | 01/01 to 12/31/2020 | 01/01 to 12/31/2021 | 01/01 to 12/31/2020
Net Income Pension and Capitalization | - | - | 588,140 | 551,544
Monetary Adjustment of Escrow Deposits | 331,513 | 186,159 | 437,885 | 235,800
Recoverable Taxes | 197,801 | 119,320 | 219,257 | 166,091
Recovery of Charges and Expenses | 1,138,495 | 1,590,188 | 857,665 | 1,414,846
Monetary Changes | - | - | - | 3
Others (1) | 1,310,836 | 2,704,358 | 2,818,478 | 3,897,584
Total | 2,978,645 | 4,600,025 | 4,921,425 | 6,265,868

(1) In the years ended December 31, 2021 and 2020, mainly includes reversals of provisions and gains on energy sales.

# 27. Other Operating Expenses

|  | Bank |  | Consolidated
| 01/01 to 12/31/2021 | 01/01 to 12/31/2020 | 01/01 to 12/31/2021 | 01/01 to 12/31/2020
Operating Provisions |  |  |  |
Fiscal (Note 20.c) | 85,877 | (130,820) | 124,822 | 66,144
Labor (Note 20.c) | 800,704 | 893,227 | 833,487 | 985,904
Civil (Note 20.c) | 462,721 | 632,425 | 628,477 | 807,086
Credit Cards | 3,613,795 | 3,472,536 | 3,219,333 | 3,017,970
Actuarial Losses - Pension Plan | 202,494 | 262,551 | 200,585 | 264,581
Legal Fees and Costs | 208,758 | 104,150 | 210,290 | 108,807
Serasa and SPC (Credit Reporting Agency) | 124,859 | 90,693 | 128,613 | 92,562
Brokerage Fees | 85,998 | 82,644 | 86,212 | 82,140
Commissions | 1,400,810 | 851,892 | 2,700,506 | 2,160,592
Rating recoverable value | 14,899 | 3,489 | 14,899 | 3,489
Others (1) | 3,985,346 | 3,550,833 | 6,666,439 | 5,789,246
Total | 10,986,261 | 9,813,620 | 14,813,663 | 13,378,521

(1) In the periods ended December 31, 2021 and 2020, mainly includes monetary restatement on provisions for legal and administrative proceedings and legal obligations, provisions for the benefit guarantee fund and other provisions.

# 28. Non-Operating Income

|  | Bank |  | Consolidated
| 01/01 to 12/31/2021 | 01/01 to 12/31/2020 | 01/01 to 12/31/2021 | 01/01 to 12/31/2020
Result on sale of Investments | - | 168,586 | (59) | 168,587
Result on Sale of Other Assets | 81,439 | 72,817 | 68,882 | 64,109
Reversal (Recognition) of Allowance for Losses on Other Assets | (19,309) | 11,534 | (25,952) | 24,629
Expense on Assets Not in Use | (51,937) | (50,677) | (53,489) | (52,579)
Gains (Losses) of Capital | (49,495) | 2,146 | (55,574) | (110)
Other Income (Expenses) | 98,137 | 35,884 | 75,192 | 34,331
Total | 58,835 | 240,290 | 9,000 | 238,967

# 29. Employee Benefit Plans

a) Complementary Retirement Plan

Banco Santander and its subsidiaries sponsor closed supplementary pension entities and assistance funds, with the purpose of granting retirement and pensions supplementary to those granted by Social Security, as defined in the basic regulations of each plan.

I) Banesprev

Plan I: defined benefit plan, fully funded by Banco Santander, covers employees hired after May 22, 1975, called Recipient Participants and those hired until May 22, 1975, called Aggregated Participants, who are entitled to the benefit. of annuity by death. Plan closed for new members since March 28, 2005.

Plan II: defined benefit plan, created as of July 27, 1994, with the new text of the Bylaws and Basic Regulation of Plan II in force, the participants of Plan I who opted for the new plan started to contribute with 44.9% of the costing rate stipulated by the actuary for each year, implemented in April 2012, extraordinary costing for the sponsor and participants, under the terms agreed with the Superintendency of Complementary Pension (PREVIC), due to a deficit in the plan. Plan closed for new members since June 3, 2005.

Plan V: defined benefit plan, fully funded by Banco Santander, covers employees hired until May 22, 1975, closed with benefits calculated until the end of the plan.

Retirement and Pension Complement Plan - Pre-75: defined benefit plan, created as a result of the privatization process of Banespa, managed by Banesprev and offered only to employees hired until May 22, 1975, with the effective starting date on January 1, 2000. Plan closed for new members since April 28, 2000.

Plan III: variable contribution plan, aimed at employees hired after May 22, 1975, previously covered by Plans I and II. In this plan, contributions are made by the sponsor and the participants. Benefits are in the form of defined contribution during the period of contributions and defined benefit during the benefit receiving phase, if paid in the form of lifetime monthly income. Plan closed for new members since September 1, 2005.

Plan IV: variable contribution plan, aimed at employees hired from November 27, 2000, in which the sponsor only contributes to risk benefits and administrative costs. In this plan, the programmed benefit is in the form of defined contribution during the period of contributions and defined benefit during the benefit receiving phase, in the form of lifetime monthly income, in whole or in part of the benefit. The plan's risk benefits are in the form of a defined benefit. Plan closed for new members since July 23, 2010.

Three Plans (DCA, DAB and CACIBAN): supplementary retirement and pensions for former associates, arising from the acquisition process of the former Banco Meridional, constituted under the defined benefit modality. Plans closed for new adhesions before the acquisition of Grupo Bozano Simonsen by Banco Santander in November 1999.

Sanprev I Plan: defined benefit plan, created on September 27, 1979, covering employees of sponsors enrolled in the plan and has been in the process of extinction since June 30, 1996.

Sanprev II Plan: plan that offers risk coverage, temporary pension supplementation, disability retirement and death benefit and sickness benefit supplementation and birth aid, covering the employees of the sponsors enrolled in the plan, being funded exclusively by the sponsors, through monthly contributions, when indicated by the actuary. Plan closed for new members since March 10, 2010.

Sanprev III Plan: variable contribution plan, covering employees of sponsors who opted to contribute, through contributions freely chosen by participants from 2% of the contribution salary. In this plan, the benefit is defined contribution during the contribution phase and defined benefit during the benefit receiving phase, in the form of lifetime monthly income, in whole or in part of the benefit. Plan closed for new members since March 10, 2010.

II) Bandeprev - Bandepe Social Security (Bandeprev)

Defined benefit plan sponsored by Banco Bandepe S.A. and Banco Santander, managed by Bandeprev. The plans are divided into a basic plan and a special supplementary retirement plan, with differences in eligibility, contributions and benefits by subgroups of participants. The plans have been closed to new adhesions since 1999 for the employees of Banco Bandepe S.A. and for the others since the year 2011.

III) Other Plans

SantanderPrevi - Private Pension Society (SantanderPrevi): is a closed supplementary pension entity, whose objective is to establish and implement pension benefit plans, complementary to the general social security system, in accordance with current legislation.

SantanderPrevi's Retirement Plan is structured in the Defined Contribution modality and closed to new members since July 2018, as approved by PREVIC, and the contributions are shared between the sponsoring companies and the plan's participants. The amounts appropriated by the sponsors for the year of 2021 were R$53,692 (2020 - R$62,435) in the Bank, and R$60,725 (2020 - R$69,142) in the Consolidated.

It has 10 cases of benefits granted with annuity from a previous plan.

SBPREV - Santander Brasil Open Pension: as of January 2, 2018, Santander started to offer this new optional supplementary pension program for new hired employees and for employees who were not enrolled in any other pension plan managed by the Closed Entities Complementary Pension Plan of the Group. This new program includes the PGBL- Free Benefit Generator Plan and VGBL-Vida Free Benefit Generator Plan, managed by Icatu Seguros, an Open Supplementary Pension Entity, open to new members, and their contributions are shared between the instituting/stipulator-enrolling companies and plan participants.

The amounts appropriated by the sponsors for the year of 2021 were R$15,124 (2020 - R$11,525) in the Bank, and R$17,880 (2020 - R$14,054) in the Consolidated.

Determination of Net Actuarial Assets (Liabilities)

|  |  |  |  |  |  |  |  |  |  |  | Bank
|  |  |  |  |  | 12/31/2021 |  |  |  |  |  | 12/31/2020
|  | Banesprev |  | Santander-Previ | Bandeprev |  | Banesprev |  | Santander-Previ | Bandeprev
Conciliation of Assets and Liabilities |  |  |  |  |  |  |  |  |  |
Present Value of Actuarial Obligations | (24,476,356) |  | (4,455) |  | (1,532,427) |  | (26,473,946) |  | (4,793) |  | (1,660,637)
Fair Value of Plan Assets |  | 25,460,958 |  | 3,703 |  | 2,182,891 |  | 25,437,174 |  | 3,811 |  | 2,348,686
|  | 984,602 |  | (752) |  | 650,463 |  | (1,036,772) |  | (981) |  | 688,049
Being: |  |  |  |  |  |  |  |  |  |  |  |
Superavit |  | 3,070,651 |  | - |  | 650,463 |  | 2,090,021 |  | - |  | 688,049
Deficit |  | (2,086,049) |  | (752) |  | - |  | (3,126,793) |  | (981) |  | -
Amount not Recognized as Assets | 2,847,412 |  | - |  | 642,604 |  | 1,806,472 |  | - |  | 680,586
Net Actuarial Asset (Note 12) |  | 223,240 |  | - |  | 7,860 |  | 283,549 |  | - |  | 7,463
Net Actuarial Liability (Note 19) |  | (2,086,049) |  | (752) |  | - |  | (3,126,793) |  | (981) |  | -
Payments Made on the Actuarial Liabilities | 581,513 |  | - |  | (3) |  | 40,987 |  | - |  | (5)
Revenues (Expenses) Recorded on the Actuarial Liabilities (Note 32) | (173,600) |  | (79) |  | 193 |  | (220,104) |  | (65) |  | (1,690)
Other Equity Valuation Adjustments | (3,356,005) |  | (92) |  | 8,761 |  | (3,926,432) |  | (399) |  | 8,555
Actual Return on Plan Assets |  | 1,457,501 |  | 460 |  | (26,644) |  | 4,581,173 |  | 140 |  | 146,784

|  |  |  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  | 12/31/2021 |  |  |  |  |  | 12/31/2020
|  | Banesprev |  | Santander-Previ | Bandeprev |  | Banesprev |  | Santander-Previ | Bandeprev
Conciliation of Assets and Liabilities |  |  |  |  |  |  |  |  |  |
Present Value of Actuarial Obligations | (24,967,077) |  | (4,455) |  | (1,532,427) |  | (27,015,987) |  | (4,793) |  | (1,660,637)
Fair Value of Plan Assets |  | 26,135,232 |  | 3,703 |  | 2,182,891 |  | 26,282,394 |  | 3,811 |  | 2,348,686
|  | 1,168,156 |  | (752) |  | 650,464 |  | (733,593) |  | (981) |  | 688,049
Being: |  |  |  |  |  |  |  |  |  |  |  |
Superavit |  | 3,282,428 |  | - |  | 650,464 |  | 2,435,321 |  | - |  | 688,049
Deficit |  | (2,114,272) |  | (752) |  | - |  | (3,168,914) |  | (981) |  | -
Amount not Recognized as Assets | 3,002,479 |  | - |  | 642,604 |  | 2,081,634 |  | - |  | 680,586
Net Actuarial Asset (Note 12) |  | 279,949 |  | - |  | 7,860 |  | 353,686 |  | - |  | 7,463
Net Actuarial Liability (Note 19) |  | (2,114,272) |  | (752) |  | - |  | (3,168,914) |  | (981) |  | -
Payments Made on the Actuarial Liabilities | 581,834 |  | - |  | (3) |  | 41,369 |  | - |  | (5)
Revenues (Expenses) Recorded on the Actuarial Liabilities (Note 31) | (171,357) |  | (79) |  | 193 |  | (221,172) |  | (65) |  | (1,690)
Other Equity Valuation Adjustments | (3,389,048) |  | (92) |  | 8,761 |  | (3,961,569) |  | (399) |  | 8,555
Actual Return on Plan Assets |  | 1,343,548 |  | 460 |  | (26,644) |  | 4,679,921 |  | 140 |  | 146,784

Opening of gains (losses) actuarial from experience, financial assumptions and demographic hypotheses:

|  |  |  |  |  |  |  |  |  |  |  | Bank
|  |  |  |  |  | 12/31/2021 |  |  |  |  |  | 12/31/2020
|  | Banesprev |  | Santander-Previ | Bandeprev |  | Banesprev |  | Santander-Previ | Bandeprev
Experience Plan |  | (2,437,959) |  | (467) |  | (158,262) |  | (786,329) |  | (115) |  | (18,897)
Changes in Financial Assumptions | 4,279,128 |  | 554 |  | 256,647 |  | 79,057 |  | 11 |  | 4,762
Gain (Loss) Actuarial - Obligation | 1,841,169 |  | 87 |  | 98,385 |  | (707,273) |  | (105) |  | (14,135)
Return on Investment, Return Unlike Implied Discount Rate | (416,650) |  | 220 |  | (182,577) |  | 2,965,190 |  | (136) |  | (13,655)
Gain (Loss) Actuarial - Asset |  | (416,650) |  | 220 |  | (182,577) |  | 2,965,190 |  | (136) |  | (13,655)
Change in Irrecoverable Surplus | (851,997) |  | - |  | 84,398 |  | (1,322,356) |  | - |  | 34,305

|  |  |  |  |  |  |  |  |  |  |  | Consolidated
|  |  |  |  |  | 12/31/2021 |  |  |  |  |  | 12/31/2020
|  | Banesprev |  | Santander-Previ | Bandeprev |  | Banesprev |  | Santander-Previ | Bandeprev
Experience Plan |  | (2,481,391) |  | (467) |  | (158,262) |  | (788,883) |  | (115) |  | (18,897)
Changes in Financial Assumptions | 4,375,431 |  | 554 |  | 256,647 |  | 80,862 |  | 11 |  | 4,762
Gain (Loss) Actuarial - Obligation | 1,894,040 |  | 88 |  | 98,385 |  | (708,021) |  | (105) |  | (14,135)
Return on Investment, Return Unlike Implied Discount Rate | (608,960) |  | 220 |  | (182,577) |  | 3,008,388 |  | (136) |  | (13,655)
Gain (Loss) Actuarial - Asset |  | (608,960) |  | 220 |  | (182,577) |  | 3,008,388 |  | (136) |  | (13,655)
Change in Irrecoverable Surplus | (714,652) |  | - |  | 84,398 |  | (1,352,687) |  | - |  | 34,305

The table below shows the duration of the actuarial obligations of the plans sponsored by Banco Santander on December 31, 2021, and December 31, 2020:

|  |  |  |  |  |  |  |  |  |  |  | Duration (in Years)
Plans |  |  |  |  |  |  |  |  |  | 12/31/2021 |  | 12/31/2020
Banesprev |  |  |  |  |  |  |  |  |  |  |  |
Plano I |  |  |  |  |  |  |  |  |  | 12.57 |  | 11.92
Plano II |  |  |  |  |  |  |  |  |  | 12.92 |  | 12.38
Plano III |  |  |  |  |  |  |  |  |  | 11.54 |  | 10.79
Plano IV |  |  |  |  |  |  |  |  |  | 14.82 |  | 14.80
Plano V |  |  |  |  |  |  |  |  |  | 9.51 |  | 9.24
Pré-75 |  |  |  |  |  |  |  |  |  | 10.45 |  | 10.10
Meridional DCA, DAB e CACIBAN |  |  |  |  |  |  |  |  |  | 6.47/5.93/7.27 |  | 6.46/5.88/7.06
Sanprev |  |  |  |  |  |  |  |  |  |  |  |
Plano I |  |  |  |  |  |  |  |  |  | 6.79 |  | 6.93
Plano II |  |  |  |  |  |  |  |  |  | 12.76 |  | 11.57
Plano III |  |  |  |  |  |  |  |  |  | 11.06 |  | 10.46
Bandeprev |  |  |  |  |  |  |  |  |  |  |  |
Plano Básico |  |  |  |  |  |  |  |  |  | 10.53 |  | 10.08
Plano Especial I |  |  |  |  |  |  |  |  |  | 7.23 |  | 6.80
Plano Especial II |  |  |  |  |  |  |  |  |  | 6.46 |  | 6.53
SantanderPrevi |  |  |  |  |  |  |  |  |  |  |  |
SantanderPrevi |  |  |  |  |  |  |  |  |  | 8.11 |  | 7.69

b) Medical and Dental Assistance Plan

Cabesp - Employee Beneficent Fund of the Bank of the State of São Paulo: entity dedicated to covering medical and dental expenses of employees hired until the privatization of Banespa in 2000, as defined in the entity's bylaws.

Retired by HolandaPrevi (former name of SantanderPrevi): the Retirement health care plan is for life and is a closed group. Upon termination, the employee must have completed 10 years of employment with Banco Real and 55 years of age. In this case, the continuity of the medical care plan was offered, where the employee pays 70% of the monthly fee and the Bank subsidizes 30%. This rule was in force until December 2002 and after this period, the employee who was dismissed, with the status of Retired HolandaPrevi, bears 100% of the health plan's monthly fee.

Former Banco Real Employees (Retired by Circulars): this is the granting of medical assistance to a former employee of Banco Real. With a lifetime nature, it was granted in the same condition as the active employee, that is, with the same coverage and plan design.

Only the basic plans and the first standard apartment are eligible, if you choose the apartment plan, the beneficiary assumes the difference between the plans plus the co-participation in the basic plan. No new additions of dependents are allowed. It has a subsidy of 90% of the plan.

Retired by Bandeprev: medical assistance plan granted to retirees from Banco do Estado de Pernambuco; it is a lifetime benefit. Banco Santander subsidizes 50% of the plan's value for those who retired until November 27, 1998. For those who retired after that date, the subsidy is 30%.

Directors with Lifetime Benefit (Lifetime Directors): only a small closed group of former Directors from Banco Sudameris are part of this benefit, who are 100% subsidized by the Bank.

Free Clinic: free clinic medical assistance plan is offered on a lifetime basis to retirees who have contributed to the Sudameris Foundation for at least 25 years and has a different standard, if the user chooses an apartment. The plan is offered only in standard infirmary, a situation in which the cost is 100% from the Sudameris Foundation.

Law 9,656 (Directors): Officers, Executive Officers, Vice Presidents and Chief Executive Officer may, for free, opt for a lifetime health care plan, in case of termination of the relationship with Banco Santander or companies of its conglomerate without just cause; provided they meet the following requirements: have contributed for at least 3 (three) years to the health plan; have exercised the function of director at Banco Santander or companies of its conglomerate for at least 3 (three) years; be 55 years of age. The plan will be maintained in the same way as the DIRECTOR enjoyed at the time of his dismissal, including the payment of his share, which must be made by means of a bank slip. Dependents active at the time of dismissal will be kept in the same plan as the DIRECTOR, and the inclusion of new dependents is not allowed under any circumstances.

Life Insurance for Retirees (Life Insurance): granted to retirees by Circulars: indemnity in cases of Natural Death, Disability due to Illness, Accidental Death. The subsidy is 45% of the prize amount. It is a closed mass.

Caixas Assistencial Life Insurance (Life Insurance): included in the life insurance mass in December 2018, the insurance of retirees from the DCA, DAB and CACIBAN plans. This insurance was granted to retirees of the former Banco Meridional, the coverage was in accordance with the retiree's choice at the time of adhesion to the benefit. The Bank subsidy is 50% of the premium for the holder and some retirees have the spouse clause bearing 100% of the cost. It is a closed mass.

Additionally, retired employees are guaranteed, provided that they comply with certain legal requirements and assume the full payment of the respective contributions, the right to remain as a beneficiary of the Banco Santander health plan, under the same conditions of assistance coverage they enjoyed when it was in force. of their employment contracts. Banco Santander's obligations to retirees are valued using actuarial calculations based on the present value of current costs.

Determination of Net Actuarial Assets (Liabilities)

|  |  |  |  |  |  |  | Bank |  |  |  |  |  |  |  | Consolidated
|  |  |  | 12/31/2021 |  |  |  | 12/31/2020 |  |  |  | 12/31/2021 |  |  |  | 12/31/2020
|  | Cabesp |  | Other Plans | Cabesp |  | Other Plans | Cabesp |  | Other Plans |  | Cabesp |  | Other Plans
Conciliation of Assets and Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Present Value of Actuarial Obligations | (4,342,690) |  | (613,101) |  | (4,960,995) |  | (759,370) |  | (4,510,768) |  | (613,101) |  | (5,158,657) |  | (759,370)
Fair Value of Plan Assets |  | 4,906,369 |  | - |  | 5,191,809 |  | - |  | 5,096,262 |  | - |  | 5,398,667 |  | -
|  | 563,679 |  | (613,101) |  | 230,814 |  | (759,370) |  | 585,495 |  | (613,101) |  | 240,010 |  | (759,370)
Being: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Superavit |  | 563,678 |  | - |  | 230,814 |  | - |  | 585,495 |  | - |  | 240,010 |  | -
Deficit |  | - |  | (613,101) |  | - |  | (759,370) |  | - |  | (613,101) |  | - |  | (759,370)
Amount not Recognized as Assets | (563,678) |  | - |  | (230,814) |  | - |  | 585,495 |  | - |  | (240,010) |  | -
Net Actuarial Asset (Note 12) | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Net Actuarial Liability (Note 19) | - |  | (613,101) |  | - |  | (759,370) |  | - |  | (613,101) |  | - |  | (759,370)
Payments Made on the Actuarial Liabilities | 149,181 |  | 37,255 |  | 129,526 |  | 38,449 |  | 152,096 |  | 37,255 |  | 132,253 |  | 38,449
Revenues (Expenses) Recorded on the Actuarial Liabilities (Note 31) | 4,001 |  | (56,798) |  | (14,878) |  | (61,247) |  | 3,626 |  | (56,798) |  | (15,851) |  | (61,247)
Other Equity Valuation Adjustments | (1,208,790) |  | (5,525) |  | (1,053,068) |  | (171,337) |  | (1,190,988) |  | (5,525) |  | (1,037,807) |  | (171,337)
Actual Return on Plan Assets | (111,147) |  | - |  | 332,520 |  | - |  | (118,549) |  | - |  | 343,053 |  | -

Opening of gains (losses) actuarial from experience, financial assumptions and demographic hypotheses:

|  |  |  |  |  |  |  | Bank |  |  |  |  |  |  |  | Consolidated
|  |  |  | 12/31/2021 |  |  |  | 12/31/2020 |  |  |  | 12/31/2021 |  |  |  | 12/31/2020
|  | Cabesp |  | Other Plans | Cabesp |  | Other Plans | Cabesp |  | Other Plans |  | Cabesp |  | Other Plans
Experience Plan |  | (336,602) |  | 49,985 |  | 192,944 |  | 81,964 |  | (340,863) |  | 49,985 |  | 207,273 |  | 81,964
Changes in Financial Assumptions | 984,402 |  | 116,272 |  | 158,480 |  | 18,015 |  | 1,020,225 |  | 116,272 |  | 164,105 |  | 18,015
Changes in Demographic Assumptions | - |  | (446) |  | - |  | (20,621) |  | - |  | (446) |  | - |  | (20,621)
Gain (Loss) Actuarial - Obligation | 647,800 |  | 165,811 |  | 351,424 |  | 79,357 |  | 679,362 |  | 165,811 |  | 371,378 |  | 79,357
Return on Investment, Return Unlike Implied Discount Rate | (498,406) |  | - |  | (30,265) |  | - |  | (521,100) |  | - |  | (34,409) |  | -
Gain (Loss) Actuarial - Asset | (498,406) |  | - |  | (30,265) |  | - |  | (521,100) |  | - |  | (34,409) |  | -
Change in Irrecoverable Surplus | (302,576) |  | - |  | (230,814) |  | - |  | (313,984) |  | - |  | (240,010) |  | -

The table below shows the duration of the actuarial obligations of the plans sponsored by Banco Santander on December 31, 2021 and December 31, 2020:

|  |  |  |  |  |  |  |  |  |  |  | Duration (in Years)
Plans |  |  |  |  |  |  |  |  |  | 12/31/2021 |  | 12/31/2020
Cabesp |  |  |  |  |  |  |  |  |  | 16.03 |  | 15.03
Bandepe |  |  |  |  |  |  |  |  |  | 18.03 |  | 14.98
Free Clinic |  |  |  |  |  |  |  |  |  | 12.28 |  | 11.47
Lifelong Directors |  |  |  |  |  |  |  |  |  | 9.36 |  | 9.27
Health Directors |  |  |  |  |  |  |  |  |  | 30.28 |  | 25.65
Circular (1) |  |  |  |  |  |  |  |  |  | 11.62 and 12.97 |  | 13.47 and 11.92
Life Insurance |  |  |  |  |  |  |  |  |  | 8.04 |  | 7.99

(1) The duration of 12.15 refers to the Former Employees of Banco ABN Amro plan (12/31/2018 – 11.72) and 11.93 to the Former Employees of Banco Real plan (12/31/2018) – 10.68).

c) Management of Plan Assets

The main asset categories as a percentage of total plan assets as of December 31, 2020, valid as of December 31, 2021, are as follows:

|  |  |  |  |  |  |  |  |  |  |  | Bank/Consolidated
|  |  |  |  |  |  |  |  |  | 12/31/2021 |  | 12/31/2020
Equity Instruments |  |  |  |  |  |  |  |  |  | 0.0% |  | 0.0%
Debt Instruments |  |  |  |  |  |  |  |  |  | 96.7% |  | 97.4%
Real Estate |  |  |  |  |  |  |  |  |  | 0.2% |  | 0.2%
Others |  |  |  |  |  |  |  |  |  | 3.2% |  | 2.5%

d) Actuarial Assumptions Adopted

Below are the actuarial assumptions adopted:

|  |  |  |  |  |  |  |  |  |  |  | Bank/ Consolidated
|  |  |  |  |  |  |  | 12/31/2021 |  |  |  | 12/31/2020
|  |  |  |  |  | Pension |  | Health |  | Pension |  | Health
Nominal Discount Rate for Actuarial Obligation and Rate Calculation of Interest Under Assets to the Next Year | 8.4% |  | 8.4% |  | 6.8% |  | 7.1%
Estimated Long-term Inflation Rate |  |  |  | 3.0% |  | 3.0% |  | 3.3% |  | 3.3%
Estimated Salary Increase Rate |  |  |  |  |  | 3.5% |  | 3.5% |  | 3.8% |  | 3.8%
Boards of Mortality |  |  |  |  |  | AT2000 |  | AT2000 |  | AT2000 |  | AT2000

(1) Banesprev II, V and Pre-75;

(2) Cabesp.

e) Sensitivity Analysis

The assumptions related to the significant actuarial assumptions have an effect on the amounts recognized in income and on the present value of the obligations. Changes in the interest rate, mortality table and health care cost, on December 31, 2021, and December 31, 2020, would have the following effects:

|  |  |  |  |  |  |  | Bank/Consolidated
|  |  |  | 12/31/2021 |  |  |  | 12/31/2020
|  | Effect on Current Service Cost and Interest |  | Effect on the Present Value of Obligations |  | Effect on Current Service Cost and Interest |  | Effect on the Present Value of Obligations
Discount Rate |  |  |  |  |  |  |  |
(+)0,5% |  | (25,444) |  | (305,114) |  | (28,711) |  | (402,547)
(-)0,5% |  | 28,133 |  | 337,349 |  | 32,099 |  | 450,049
Boards of Mortality |  |  |  |  |  |  |  |
Applied (+) 2 years |  | (44,619) |  | (535,039) |  | (47,637) |  | (667,904)
Applied (-) 2 years |  | 47,934 |  | 574,793 |  | 54,226 |  | 760,289
Cost of Medical Care |  |  |  |  |  |  |  |
(+)0,5% |  | 31,280 |  | 375,089 |  | 34,718 |  | 486,769
(-)0,5% |  | (28,762) |  | (344,891) |  | (31,637) |  | (443,569)

f) Share-Based Compensation

Banco Santander has long-term compensation programs linked to the performance of the market price of its shares. The members of Banco Santander 's Executive Board are eligible for these plans, in addition to the participants who were determined by the Board of Directors, whose choice will consider seniority in the group. The members of the Board of Directors only participate in these plans when they hold positions in the Executive Board.

Program | Liquidity Type |  | Vesting Period | Period of Exercise/Settlement | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2020 |  |
Local | Santander Brasil Bank Shares |  | 01/2020 to 12/2021 | 2022 and 2023 | R$4,216,667 | (*) | R$ 4,916,667 |
| 01/2020 to 12/2022 | 2023 | R$3,668,000 | (*) | - |  |
| 01/2020 to 12/2022 | 2023 and 2024 | R$ 2,986,667 | (*) | R$9,440,000 |  |
| 01/2021 to 06/2024 | 2024 | R$13,520,000 | (*) | - |  |
| 01/2021 to 12/2023 | 2023 | R$1,834,000 | (*) | - |  |
| 07/2019 to 06/2022 | 2022 | 111,962 | SANB11 | 109,677 SANB11 |  |
| 09/2020 to 09/2022 | 2022 | 301,583 | SANB11 | 450,738 SANB11 |  |
| 01/2020 to 09/2023 | 2023 | 249,666 | SANB11 | 281,031 SANB11 |  |
| 01/2021 to 12/2022 | 2023 | 177,252 | SANB11 | - |  |
| 01/2021 to 12/2023 | 2024 | 327,065 | SANB11 | - |  |
| 01/2021 to 01/2024 | 2024 | 30,545 | SANB11 | - |  |
Global | Santander Spain Shares and Options |  | 2023 |  | 309,576 | SAN (**) | 318,478 SAN (**) |  |
| 2023, with limit for exercise of the options until 2030 | 1,618,445 | Options without SAN (**) | 1,664,983 Options without SAN (**) |
| 02/2024 |  | 135,632 | SAN (**) | - |  |
| 02/2024, with limit for exercise of the options until 2/2029 |  | 404,630 | Options without SAN (**) | - |  |
Balance of Plans on December 31, 2021 |  |  | $26,225,334 | (*) | R$14,356,667 |  |
|  | 1.198.073 | SANB11 | 841,446 SANB11 |  |
|  | 445.208 | SAN | 318,478 SAN |  |
|  | 2.023.075,00 | Options without SAN | 1,664,983 Options without SAN |  |

(*) Plan target in Reais, to be converted into SANB11 shares according to the achievement of the plan's performance indicators at the end of the vesting period, based on the quotation of the last 15 trading sessions of the month immediately preceding the grant.

(**) Target of the plan in SAN shares and options, to be paid in cash at the end of the vesting period, according to the achievement of the plan's performance indicators.

Our long-term programs are divided into Local and Global plans, with specific performance indicators and condition of maintaining the participant's employment relationship until the payment date in order to be entitled to receive.

The calculation of payment for the plans is based on the percentage of achievement of the indicators applied to the reference value (target), with the Local plans being paid in SANB11 units and the Global plans in shares and options of Grupo Santander (SAN).

Each participant has a reference value defined in cash, converted into SANB11 units or into shares and options of Grupo Santander (SAN), normally based on the quotation of the last 15 trading sessions of the month immediately preceding the granting of each plan. At the end of the vesting period, the payment of either the resulting shares in the case of local plans, or the cash value corresponding to the shares/options of the global plans, is made with a 1-year restriction, and this payment is still subject to the application of the Malus clauses /Clawback, which may reduce or cancel the shares to be delivered in cases of non-compliance with internal rules and exposure to excessive risks.

f.1) Impact on Results

The impacts on the result are accounted for under Personnel Expenses, as follows:

Program | Liquidity Type |  | 01/01 to 12/31/2021 | 01/01 to 12/31/2020
Local | Santander Brasil Bank Shares | 20,720 | 10,776
Global | Santander Spain Shares and Options | 3,534 | 865

f.2) Variable Remuneration Referenced to Shares

The long-term incentive plan (deferral) sets forth the requirements for payment of future deferred installments of variable remuneration, considering the long-term sustainable financial bases, including the possibility of applying reductions or cancellations due to the risks assumed and fluctuations the cost of capital.

The variable remuneration plan with payment referenced in Banco Santander shares is divided into 2 programs: (i) Identified Collective and (ii) Other Employees. The impacts on the result are accounted for under Personnel Expenses, as follows:

|  |  |  |  |  | Bank |  | Consolidated
Program |  | Participant |  | Liquidity Type |  | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2020 |  | 01/01 to 12/31/2021 |  | 01/01 to 12/31/2020
Collective Identified |  | Members of the Executive Committee, Statutory Officers and other executives who assume significant and responsible risks of control areas |  | 50% in cash indexed to 100% of CDI and 50% in shares (Units SANB11) |  | 66,694 |  | 101,232 |  | 63,658 |  | 103,696
Unidentified Collective |  | Management-level employees and employees who are benefited by the Deferral Plan |  | 50% in cash indexed to 100% of CDI and 50% in shares (Units SANB11) |  | 111,673 |  | 94,166 |  | 111,995 |  | 98,069

# 30. Risk Management, Capital and Sensitivity Analysis

a) Risk Management Structure

Banco Santander in Brazil follows the model based on a prudent risk management. It has specialized management structure for each risk listed below, as well as an area that carries out the Integrated Risk Management of the Group, disseminates Risk Pro Culture, manages risk self-assessment and controls Risk Appetite (RAS) - which is approved by the Board of Directors -, attending the requirements of the local regulator and the international good practices, aiming to protect capital and ensure business profitability.

The fundamental principles that rule the risk governance model are:

• All employees are responsible for the management of risk;

• Senior Management Engagement;

• Independence of risk control and management functions;

• Comprehensive approach to management and control of risks;

• Risk management and control must be based on timely, accurate and sufficiently granular management information.

A. Credit Risk

The credit risk management is based in monitoring of credit portfolio and new credit operation indicators. Considering the economic scenario, profitability and defaults projections are estimated under control of appetite for risk. These projections are the basis for a redefinition of credit policies, which affect both the credit evaluation for a specific customer as customers with similar profile.

Another relevant aspect is the preventive management of credit, which is fundamental in maintaining the quality of Banco Santander's portfolio. The monitoring of the customer portfolio is a daily routine of the entire commercial area, with the support of the central areas.

In this challenging scenario imposed by the COVID-19 pandemic, the portfolio and customers were monitored with great caution. In an attempt to mitigate major impacts on the companies' liquidity and provide the necessary financial support to help all sectors of the economy, all new productions and extensions were analyzed in order to meet the needs of customers, always maintaining the established risk classification criteria and governance for approval of new operations.

To measure the quality of a client’s or facility’s credit, the Bank uses its own models score/rating, made by Methodology and independent Validation areas.

On credit restructuring and recovery, the Bank uses specific collection teams, which may be:

• Internal teams specializing in with direct action against defaulting clients with delays exceeding 60 days and more significant amounts; and

• External partners specializing in collecting, notifying and filing high-risk clients.

Sale of non-performing loans portfolio is a recurrent part of the recovery strategy (only credit rights), but the Santander may maintain relationships and transactional means with assigned clients.

Besides, the bank constitutes provision in accordance with the current legislation of Bacen and National Monetary System (Note 8.e).

B. Market Risk Management

The management of the market risk consists on developing, measuring and monitoring the use of limits previously approved in internal committees, relevant to the value at risk of the portfolios, the sensitivities arising from variation in market data (interest rates, indices, prices, exchange rates, etc.), liquidity gaps, among others, which might affect the positions of Banco Santander's portfolios in the various markets where it operates.

C. Operational Risk and Internal Controls

Santander's operational risk management model is based on best practices and its premise is to evaluate, monitor, control, implement improvements to reduce exposure to risks and losses, in line with the risk appetite approved by the Board of Directors and adopting the definition of the Basel Committee and Central Bank of Brazil for operational risks. Our governance model is based on the three lines of defense and has people, structures, policies, methodologies and tools to support the adequate management of operational risk.

The Internal Controls Model is based on the methodology developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), covering the strategic, operational, financial disclosure and compliance components and allows compliance with the requirements of regulators BACEN, CVM, B3, SUSEP and Sarbanes Oxley - SOX (Security Exchange Commission).

D. Bank´s business is highly dependent on the proper functioning of information technology systems.

Our business is highly dependent on the ability of our information technology systems to accurately process a large number of transactions across numerous and diverse markets and products in a timely manner, and on our ability to rely on our digital technologies, computer and email services, software and networks, as well as on the secure processing, storage and transmission of confidential data and other information in our computer systems and networks. The proper functioning of our financial control, risk management, accounting, customer service and other data processing systems is critical to our business and our ability to compete effectively.

E. Compliance and Reputacional Risk Management

Compliance risk management has a proactive focus on this risk, policies, implementation of process, including monitoring, training, advisory, risk assessment and corporate communication of standards and regulations to be applied to each businesses area of the Banco Santander.

F. Unit for the Anti Money Laundering (AML) and Coutering of Financing of Terrorism (CFT)

Area responsible for promoting the development of the prevention of money laundering and combating the financing of terrorism in the different business units, as well as responsible for the Bank's Know Your Customer guidelines, establishing policies, procedures, monitoring and culture related to the subject. Moreover, analyzing the AML/CFT risks in the products and services monitoring the product´s risk and transactions carried out.

G. Social and Environmental Risk

Banco Santander’s Social and Environmental Responsibility Policy (PRSA), which complies with National Monetary Council Resolution 4,327/2014 and the SARB 14 self-regulation issued by Febraban, establishes guidelines and consolidates specific policies for social-environmental practices used in business and stakeholder relations. These practices including social and environmental risk management, impacts and opportunities related themes, such as, adequacy in the concession or use of credit, supplier management and analysis of the social and environmental risk which is carried out through the analysis of the socio-environmental practices of wholesale and segment Empresas 3 retail clients, that have limits or credit risk greater than BRL5 million and are included in one of the 14 sectors of social and environmental attention. In other to mitigate operational, capital, credit and reputational risk. Since 2009 Santander is Equator Principles signatory, which standards are applied in order to mitigate social and environmental risks when financing big projects.

The commitments assumed in the PRSA are detailed in others Bank policies, such as, the Anti-Corruption Policy, Supplier Relationships and Homologation Policies and Social-Environmental Risk Policies, besides that the Private Social Investment Policy, which aims to guide the strategy of this topic and present guidelines for social programs that strengthen this strategy.

H. Structure of Capital Management

Santander adopts a robust governance that supports all processes related to effective capital management in order to:

• Clearly define the functions of each team involved in the capital management;

• Ensure that the capital metric limits established in management, risk appetite and the Risk Profile Assessment (RPA) are fulfilled;

• Ensure that the actions related to the institution's strategy consider the impacts generated in the capital allocation;

• Ensure that the Management actively participates in the management and is regularly informed about the behavior of the capital metrics.

At Banco Santander, there is an Executive Vice-President responsible for capital management appointed by the Board of Directors; in addition, there are institutional capital policies, which act as guidelines for capital management, control and reporting (thus fulfilling all the requirements defined in CMN Resolution No. 4,557 / 2017).

For further information, see the "Risk and Capital Management Structure - Resolution nº. 4,557 / BACEN" in "Corporate Governance" and "Risk Management" at https://www.ri.santander.com.br/

b) Operational Limits

As established in CMN Resolutions No. 4,193/2013 and No. 4,783/2020, until September 2021 the PR requirement was 10.625%, including 8.00% of Minimum Reference Equity plus 1.625% of Additional for Capital Conservation and 1 .00% Systemic Additional. Tier I PR was 8.625% and Minimum Principal Capital was 7.125%.

In October 2021, the Additional for Capital Conservation increased to 2.00%. Thus, in December the PR requirement is 11.00%. It is considered 8.00% of Minimum Reference Equity plus 2.00% of Additional for Capital Conservation and 1.00% of Additional Systemic, with the requirement of Tier I PR of 9.00% and of Core Capital Minimum of 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 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 force. The index is calculated on a consolidated basis based on information from the Prudential Consolidated, as shown below:

|  | 12/31/2021 |  | 12/31/2020
Tier I Regulatory Capital |  | 76,969.9 |  | 77,571.5
Principal Capital |  | 69,919.9 |  | 71,006.3
Supplementary Capital (Note 18.b) |  | 7,050.1 |  | 6,565.2
Tier II Regulatory Capital (Note 18.b) |  | 12,591.3 |  | 6,554.5
Regulatory Capital (Tier I and II) |  | 89,561.3 |  | 84,126.0
Credit Risk (1) |  | 527,119.3 |  | 478,303.5
Market Risk (2) |  | 15,122.2 |  | 15,846.3
Operational Risk |  | 58,499.8 |  | 57,419.4
Total RWA (3) |  | 600,741.3 |  | 551,569,2
Basel I Ratio |  | 12.81 |  | 14.06
Basel Principal Capital |  | 11.64 |  | 12.87
Basel Regulatory Capital |  | 14.91 |  | 15.25

(1) The exposures to credit risk subject to the calculation of the capital requirement using the standardized approach (RWACPAD) are based on the procedures established by Bacen Circular 3,644, of March 4, 2013 and its subsequent complementation through the wording of Bacen Circular 3,174 of August 20, 2014 and Bacen Circular 3,770 of October 29, 2015.

(2) Includes installments for market risk exposures subject to variations in foreign currency coupon rates (RWAjur2), price indices (RWAjur3) and interest rates (RWAjur1/RWAjur4), commodity prices (RWAcom), the price of shares classified in the trading portfolio (RWAacs) and installments for exposure to gold, foreign currency and operations subject to exchange variation (RWAcam).

(3) Risk Weighted Assets or risk weighted asset.

Banco Santander publishes the Risk Management Report with information on risk management, a brief description of the Recovery Plan, capital management, PR and RWA. The report with more details on the assumptions, structure and methodologies can be found at the electronic address www.santander.com.br/ri.

Financial institutions are required to maintain the investment of funds in permanent assets in accordance with the adjusted Reference Equity level. The funds invested in permanent assets, calculated on a consolidated basis, are limited to 50% of the value of the Reference Equity adjusted in accordance with the regulations in force. Banco Santander complies with the established requirements.

c) Financial Instruments - Sensitivity Analysis

Risk management is focused on portfolios and risk factors, in accordance with Bacen regulations and good international practices.

The financial instruments are segregated in the trading and banking portfolios, as performed in the management of market risk exposure, in accordance with the best market practices and with the operations classification and capital management criteria of the Bacen's Standardized Basel Method. The trading portfolio consists of all transactions with financial instruments and commodities, including derivatives, held with the intention of trading. The banking portfolio consists of structural operations arising from the various business lines of Banco Santander and their possible hedges. Therefore, according to the nature of Banco Santander's activities, the sensitivity analysis was divided between the trading and banking portfolios.

Banco Santander performs the sensitivity analysis of financial instruments in accordance with CVM Instruction No. 475/2008, considering market information and scenarios that would negatively affect the Bank's positions.

The summary tables presented below summarize sensitivity values ​​generated by Banco Santander's corporate systems, referring to the trading portfolio and the banking portfolio, for each of the portfolio scenarios on December 31, 2021.

Trading Portfolio |  |  |  |  |  |  |  | Consolidated
Risk Factor |  | Description |  | Scenario 1 |  | Scenario 2 |  | Scenario 3
Interest Rate - Real |  | Exposures subject to Changes in Interest Fixed Rate | (4,943) |  | (108,670) |  | (217,339) |
Coupon Interest Rate |  | Exposures subject to Changes in Coupon Rate of Interest Rate | (550) |  | (7,132) |  | (14,265) |
Coupon - US Dollar |  | Exposures subject to Changes in Coupon US Dollar Rate | (5,270) |  | (19,539) |  | (39,077) |
Coupon - Other Currencies |  | Exposures subject to Changes in Coupon Foreign Currency Rate | (1,127) |  | (1,900) |  | (3,801) |
Foreign Currency |  | Exposures subject to Foreign Exchange |  | (426) |  | (10,658) |  | (21,315)
Eurobond/Treasury/Global |  | Exposures subject to Interest Rate Variation on Papers Traded on the International Market |  | (5,218) |  | (6,018) |  | (12,035)
Inflation |  | Exposures subject to Change in Coupon Rates of Price Indexes | (5,564) |  | (34,407) |  | (68,815) |
Shares and Indexes |  | Exposures subject to Change in Shares Price | (1,553) |  | (38,814) |  | (77,629) |
Commodities |  | Exposures subject to Change in Commodity Price | (1,184) |  | (29,609) |  | (59,217) |
Total (1) |  |  |  | (25,835) |  | (256,747) |  | (513,493)

(1) Amounts net of tax effects.

Scenario 1: shock of +10bps and -10bps in the interest curves and 1% for price changes (currencies and shares), considering the largest losses by risk factor.

Scenario 2: shock of +25% and -25% in all risk factors, considering the largest losses by risk factor.

Scenario 3: shock of +50% and -50% in all risk factors, considering the largest losses by risk factor.

Banking Portfolio |  |  |  |  |  |  |  | Consolidated
Risk Factor |  | Description |  | Scenario 1 |  | Scenario 2 |  | Scenario 3
Interest Rate - Real |  | Exposures subject to Changes in Interest Fixed Rate | (49,224) |  | (1,679,612) |  | (3,768,750)
TR and Long-Term Interest Rate - (TJLP) | Exposures subject to Change in Exchange TR and TJLP | (6.413) |  | (97,524) |  | (145,711)
Inflation |  | Exposures subject to Change in Coupon Rates of Price Indexes | (34,286) |  | (455,628) |  | (838,652)
Coupon - US Dollar |  | Exposures subject to Changes in Coupon US Dollar Rate | (13,530) |  | (60,291) |  | (117,298)
Coupon - Other Currencies |  | Exposures subject to Changes in Coupon Foreign Currency Rate | (3,891) |  | (7,770) |  | (15,642)
Interest Rate Markets International | Exposures subject to Changes in Interest Rate Negotiated Roles in International Market | (31.456) |  | (78,782) |  | (161,417)
Foreign Currency |  | Exposures subject to Foreign Exchange |  | 560 |  | 13,995 |  | 27,989
Total (1) |  |  |  | (138,240) |  | (2,365,612) |  | (5,019,481)

(1) Amounts net of tax effects.

Scenario 1: shock of +10bps and -10bps in the interest curves and 1% for price changes (currencies and shares), considering the largest losses by risk factor.

Scenario 2: shock of +25% and -25% in all risk factors, considering the largest losses by risk factor.

Scenario 3: shock of +50% and -50% in all risk factors, considering the largest losses by risk factor.

# 31. Corporate Restructuring

During the year ended on December 31, 2021 and the year ended on December 31, 2020, several corporate movements were implemented in order to reorganize the operations and activities of the entities in accordance with the business plan of Banco Santander (Brasil) SA (“Banco Santander”, “Santander Brasil” or “Company”):

i) Acquisition of Equity Interest in Apê11 Tecnologia e Negócios Imobiliários Ltda.

On September 2, 2021, Santander Holding Imobiliária S.A. (“SHI”) – a wholly owned subsidiary of the Company – celebrated, with the partners of Apê11 Tecnologia e Negócios Imobiliários Ltda. (“Apê11”), certain Share Purchase and Sale Agreement and Investment Agreement, by which, once the transaction is carried out, it will hold 90% of the capital stock of Apê11 (“Transaction”). Apê11 acts as a collaborative marketplace, pioneering the digitization of the purchase journey of houses and apartments. After the fulfillment of the precedent conditions established in the Share Purchase and Sale Investment Agreement, the closing of the Transaction was formalized on December 16, 2021.

ii) Acquisition of equity interest in Liderança Serviços Especializados em Cobranças Ltda. and Fozcobra Agência de Cobranças Ltda.

On August 4, 2021, Atual Serviços de Recovery de Créditos e Meios Digitais S.A. (“Atual”) – a wholly-owned subsidiary of the Company – celebrated, with the partners of Liderança Serviços Especializados em Cobranças Ltda. (“Liderança”), a certain Agreement for the Assignment of Quotas and Other Covenants, whereby, once the transaction is carried out, it will hold 100% of the share capital of Liderança (“Transaction”). Liderança operates in the area of ​​overdue credit recovery, providing extrajudicial collection services to financial institutions of different sizes, retail networks, telecommunications operators and automakers, among others, and has a subsidiary, Fozcobra Agência de Cobranças Ltda. After the fulfillment of the precedent conditions established in the Agreement for the Assignment of Quotas and Other Covenants, the closing of the Transaction was formalized on October 1, 2021. Subsequently, Fozcobra was merged into Leadership on October 4, 2021.

iii) Acquisition of Equity Interest in Solutions 4 Fleet Consultoria Empresarial Ltda.

On July 13, 2021, Aymoré Crédito, Financiamento e Investimento S.A. (“Aymoré”), celebrated with the partners of Solution 4 Fleet Consultoria Empresarial Ltda. (“Solutions4Fleet”), certain Investment Agreement and Share Purchase and Sale Agreement, by which, once the transaction is carried out, Aymoré will hold 80% of the capital stock of Solution4Fleet (“Transaction”). Solution4Fleet specializes in structuring vehicle rental and subscription businesses – long-term rental for individuals. After the fulfillment of the precedent conditions established in the Share Purchase and Sale Investment Agreement, the closing of the Transaction was formalized on October 8, 2021.

iv) Acquisition of equity interest in Car10 Tecnologia e Informação S.A. and Pag10 Fomento Mercantil Eireli.

On July 13, 2021, Webmotors S.A. (“Webmotors”), celebrated with the partners of Car10 Tecnologia e Informação S.A. (“Car10 Tecnologia”) and Pag10 Fomento Mercantil Eireli. (“Pag10” and, together with Car10 Tecnologia, “Car10”), certain Investment Agreements and Share Purchase and Sale Agreements, under which, once the transaction is carried out, Webmotors will hold approximately 66.7% of the share capital of Car10 Tecnologia, which, in turn, is the sole holder of Pag10 (“Transaction”). Car10 acts as a marketplace that brings together more than 7,000 service providers such as workshops and autocenters; auto body and Paint; and cleaning and sanitizing, as well as emergency assistance and towing. After compliance with the condition’s precedent established in the Investment Agreement for the Purchase and Sale of Shares, the closing of the Transaction was formalized on September 20, 2021.

v) Acquisition of Equity Interest in Monetus Investimentos Ltda. and Monetus Corretora de Seguros Ltda.

On June 15, 2021, Pi Distribuidora de Títulos e Valores Mobiliários SA (“Pi”), Toro Corretora de Títulos e Valores Mobiliários SA (“Toro CTVM”), and Toro Investimentos SA (“Toro Investimentos” and, together, with Toro CTVM, “Toro”) entered into, with the partners of Monetus Investimentos Ltda., and Monetus Corretora de Seguros Ltda. (jointly “Monetus”), investment agreement and other covenants, whereby, once the transaction is carried out, Toro Investimentos will hold 100% of the capital stock of Monetus (“Transaction”). Monetus, originally from Belo Horizonte, carries out its activities through an automated investment application based on objectives, after considering the client's needs and risk profile, the application automatically creates, executes and tracks a diversified and personalized investment strategy that use the platform to undertake and serve customers in the best way. The execution of the Transaction will be subject to the execution of the definitive instruments and the implementation of certain usual conditions in this type of transaction, including the applicable regulatory approvals.

vi) Acquisition of Equity Interest in Mobills Labs Soluções em Tecnologia Ltda. and Mob Soluções em Tecnologia Ltda.

On June 15, 2021, Pi Distribuidora de Títulos e Valores Mobiliários SA (“Pi”), Toro Corretora de Títulos e Valores Mobiliários SA (“Toro CTVM”), and Toro Investimentos SA (“Toro Investimentos” and, together, with Toro CTVM, “Toro”) entered into, with the partners of Mobills Labs Soluções em Tecnologia Ltda., and Mob Soluções em Tecnologia Ltda (together “Mobills”), an investment agreement and other covenants, by which, once effective In the transaction, Toro Investimentos will hold 100% of the capital stock of Mobills (“Transaction”). Based in Ceará, Mobills has a variety of financial applications that have a large user base, especially related to financial planning. The execution of the Transaction will be subject to the execution of the definitive instruments and the implementation of certain usual conditions in this type of transaction, including the applicable regulatory approvals.

vii) Corporate reorganization Santander Leasing S.A. Arrendamento Mercantil and Banco Bandepe S.A.

On May 11, 2021, Banco Santander (Brasil) SA (“Banco Santander”) and Banco Bandepe SA (“Bandepe”) entered into a Share Purchase Agreement through which Banco Santander acquired the entire interest shareholding held by Bandepe in Santander Leasing SA Arrendamento Mercantil (“Santander Leasing”), which corresponds to 21.42%. In this operation, Banco Santander became the sole shareholder of Santander Leasing. On May 27, 2021, the merger of all the shares of Bandepe by Santander Leasing was resolved, in order to convert Bandepe into a wholly owned subsidiary of Santander Leasing (“Incorporation of Shares”). The Merger of Shares resulted in an increase in the capital stock of Santander Leasing of R$ 5,365,189,080.65 (five billion, three hundred and sixty-five million, one hundred and eighty-nine thousand, eighty reais and sixty-five cents), in reason for the merger of shares issued by Banco Bandepe held by Banco Santander.

viii) Partial spin-off and segregation of Getnet Adquirência e Serviços para Meios de Pagamento S.A.

After the approval of the studies and favorable proposal of the Board of Directors of Santander Brasil, on March 31, 2021, the shareholders of Santander Brasil approved the partial spin-off of Santander Brasil, for the segregation of shares owned by them issued by Getnet Acquirência e Serviços for Meios de Pagamentos SA (“Getnet”), with a version of the split portion for Getnet itself. Upon completion of the spin-off, the shareholders of Santander Brasil became direct shareholders of Getnet in proportion to their participation in the capital of Santander Brasil and the shares and Units of Santander Brasil started to be traded with the right to receive the shares and Units of issue of Getnet.

As a result of the Spin-off, Santander Brasil's share capital was reduced in the total amount of 2,000,000 (two billion reais), without the cancellation of shares, with Santander Brasil's share capital increasing to 57,000,000 (fifty-seven billion reais) to 55,000,000 (fifty-five billion reais).

ix) Signing of an agreement for the Acquisition of Paytec Tecnologia em Pagamentos Ltda. and Paytec Logística e Armazém EIRELI

On December 8, 2020, Banco Santander celebrated, with the partners and owners of Paytec Tecnologia em Pagamentos Ltda. and Paytec Logística and Armazém Eireli (together “Paytec”), a share purchase and sale agreement, transfer of ownership and other covenants, whereby, once the transaction is carried out, it will hold 100% of the share capital of Paytec. Paytec acts as a logistics operator with national coverage and focused on the payments market. After approval of the transaction by the Central Bank of Brazil, the transaction was carried out on March 12, 2021, with Banco Santander now holding 100% of the share capital of the Paytec companies.

x) Dissolution and liquidation of Santander Brasil, Establecimiento Financiero de Credito, S.A.

On November 12, 2020, by decision of its sole partner, the dissolution and liquidation of Santander Brasil, Establecimiento Financiero de Credito, SA (which had its corporate name changed to Santander Brasil, SAU), an offshore entity headquartered in Spain, was approved. fully owned by Banco Santander Brasil, which acted to complement the foreign trade strategy for corporate clients (large Brazilian companies and their operations abroad) and to offer financial products and services. The capital invested abroad was repatriated in November 2020. The company's dissolution and liquidation deed were registered in the Madrid Registry with effect from December 15, 2020. These activities are now carried out by the Bank's branch in Luxembourg.

xi) Disposal of Investments in Norchem Holding e Negócios S.A. and Norchem Participações e Consultoria S.A.

On October 8, 2020, Banco Santander (Brasil) SA withdrew from the shareholder structure of Norchem Participações e Consultoria SA (NPC) and Norchem Holding e Negócios SA (NHN), upon capital reduction in the amounts of R$19,950 million and R$14,770 million, respectively, and consequent cancellation of shares held by Banco Santander (Brasil) S.A.

xii) Acquisition of Equity Interest in Toro Controle

On September 29, 2020, Pi Distribuidora de Títulos e Investimentos SA (“Pi”), which is indirectly controlled by Banco Santander, entered into an investment agreement with the shareholders of Toro Controle e Participações SA (“Toro Controle”) and other covenants. Toro Controle had been a holding company that, ultimately, had controlled Toro Corretora de Títulos e Valores Mobiliários Ltda. (“Toro CTVM”) and Toro Investimentos S.A. (“Toro Investimentos” and, together, “Toro”). Toro is an investment platform founded in Belo Horizonte in 2010. In 2018, it received the necessary authorizations and started its operation as a securities brokerage aimed at the retail public. After compliance with all applicable conditions precedent, including approval by the Central Bank of Brazil, the transaction was carried out on April 30, 2021, with the acquisition of shares representing 60% of the capital stock of Toro Controle and its immediate incorporation by Toro CTVM, so that Pi became the direct holder of the equivalent of 60% of the share capital of Toro CTVM which, in turn, holds 100% of the share capital of Toro Investimentos.

xiii) Signing of an Agreement for the Acquisition of Equity Interest in Gira – Gestão Integrada de Recebíveis do Agronegócio S.A.

On August 11, 2020, Banco Santander signed a share purchase and sale agreement and other agreements with the shareholders of Gira – Integrated Management of Receivables of Agronegócio S.A. Gira is a technology company that operates in the management of agribusiness receivables and has a robust technological platform, capable of adding greater security to agricultural credit operations. Upon compliance with the conditions established in the contract, in particular the applicable regulatory approvals, the parties formalized the definitive instruments on January 8, 2021. With the completion of the transaction, Banco Santander now holds 80% of Gira's share capital.

xiv) Acquisition of direct equity interest in Toque Fale Serviços de Telemarketing Ltda.

On March 24, 2020, the Bank acquired the shares representing the entire share capital of Toque Fale Serviços de Telemarketing Ltda. (“Toque Fale”) for R$1,099 million, corresponding to the book value of the shares on February 29, 2020, previously held by Getnet Acquirência e Serviços para Meios de Pagamento S.A. and Auttar HUT Processamento de Dados Ltda. As a result, the Bank became a direct shareholder of Toque Fale and holder of 100% of its capital.

xv) Disposal of the equity interest held in Super Pagamentos e Administração de Meios Eletrônicos S.A.

On February 28, 2020, the equity interest held in Super Pagamentos e Administração de Meios Eletrônicos SA was sold to Superdigital Holding Company, SL, a company indirectly controlled by Banco Santander, SA, of the shares representing the totality of the share capital of Super Payments and Administration of Meios Eletrônicos SA (“Superdigital”) for the amount of R$270 million. As a result, the Bank is no longer a shareholder of Superdigital.

xvi) Acquisition of Summer Empreendimentos Ltda.

On May 14, 2019, Banco Santander (Brasil) S.A. and its wholly owned subsidiary Santander Holding Imobiliária S.A. (“SHI”) entered into a binding document with the partners of Summer Empreendimentos Ltda. (“Summer”) establishing the terms of the negotiation of purchase and sale of shares representing the entirety of Summer's capital stock. The acquisition was approved by BACEN on September 16, 2019 and concluded on September 20, 2019, so that SHI now holds 99.999% and Banco Santander 0.001% of the shares representing Summer's capital stock. Due to the Entity's short-term sale plan, Summer was initially recorded as a Non-Current Asset Held by Sale, at its cost value. In June 2020, with the non-execution of the established plan, Summer became part of the scope of Banco Santander's Individual and Consolidated Condensed Interim Financial Statements.

xvii) Sale option of interest in Banco Olé Consignado S.A. and merger of Banco Olé Consignado S.A. and Bosan Participações S.A.

On March 14, 2019, the minority shareholder of Banco Olé Consignado SA (“Banco Olé”) formalized its interest in exercising the put option provided for in the Investment Agreement, entered into on July 30, 2014, for the sale of its interest in 40% in the share capital of Olé Consigned to Banco Santander (Brasil) SA (“Banco Santander”).

On December 20, 2019, the parties entered into a binding agreement for the acquisition, by Banco Santander, of all shares issued by Bosan Participações SA (holding whose only asset are shares representing 40% of Banco Olé's share capital), for the amount total of R$1.6 billion (“Transaction”), to be paid on the closing date of the Transaction.

On January 31, 2020, the Bank and the shareholders of Bosan Participações SA (“Bosan”) concluded the definitive agreement and signed the purchase and sale agreement for 100% of the shares issued by Bosan, through the transfer of Bosan's shares to Bank and payment to sellers in the total amount of R$1,608,772. As a result, Banco Santander became, directly and indirectly, the holder of 100% of the shares of Banco Olé.

On August 31, 2020, Banco Santander shareholders approved the merger by the Bank of Banco Olé Consignado S.A. and Bosan Participações S.A. The mergers did not result in an increase in the share capital of Santander Brasil.

# 32. Other information

a) Co-obligations and risks in guarantees provided to customers, recorded in memorandum accounts, reached the amount of R$49,624,633 (12/31/2020 - R$46,471,443) at the Bank and R$49,624,633 (12/31/2020 - R$46,471,443) in the Consolidated.

b) The total amount of investment funds and assets under management by the Santander Conglomerate is R$2,770,684 (12/31/2020 - R$2,716,477) and the total amount of investment funds and assets under management is R$192,927,475 (12/31/2020 - R$191,873,169) recorded in memorandum accounts.

c) The insurance in force on December 31, 2021, corresponding to coverage of fires, natural disasters and other risks related to properties, has a coverage value of R$9,214,986 (12/31/2020 - R$392,189) in the Bank and in the Consolidated. In addition, in the Bank and in the Consolidated on December 31, 2021, there are other policies in force to cover risks related to fraud, civil liability and other assets in the amount of R$1,546,120 (12/31/2020 - R$8,674,721).

d) Between December 31, 2021 and December 31, 2020, there were no related asset transactions and no obligations for related asset transactions.

e) Clearing and Settlement of Obligations Agreements - CMN Resolution 3,263/2005 - Banco Santander has an agreement for clearing and settlement of obligations within the scope of the National Financial System (SFN), entered into with individuals and legal entities that are or are not members of the SFN, resulting in in greater guarantee of financial settlement, with the parties which have this type of agreement. These agreements establish that payment obligations to Banco Santander arising from credit and derivative transactions, in the event of default by the counterparty, will be offset against Banco Santander's payment obligations to the counterparty.

f) Other Commitments - Banco Santander has two types of lease contracts: cancelable and non-cancellable. The cancelables are properties, mainly used as branches, based on a standard contract, which can be canceled at will and includes the right of option to renew and readjustment clauses, framed in the concept of operational leasing. The total of future minimum payments for non-cancellable operating leases is shown below:

|  | 12/31/2021 |  | 12/31/2020
Up to 1 Year |  | 715,576 |  | 670,619
Between1 to 5 Years |  | 1,420,853 |  | 1,607,995
More than 5 Years |  | 181,417 |  | 171,420
Total |  | 2,317,846 |  | 2,450,034

Additionally, Banco Santander has contracts with an indefinite term, in the amount of R$801 (12/31/2020 - R$880) corresponding to the monthly rent of contracts with this characteristic. Operating lease payments, recognized as expenses in 2021, were in the amount of R$369,482 (2020 - R$358,656).

Rental contracts will be readjusted annually, in accordance with current legislation, with the highest percentage being in accordance with the variation of the General Market Price Index (IGPM). The lessee is assured the right to unilaterally terminate these contracts, at any time, in accordance with contractual clauses and current legislation.

g) Market value of assets and liabilities - Banco Santander classifies measurements at market value using the market value hierarchy that reflects the model used in the measurement process, and is in accordance with the following hierarchical levels:

Level 1: Determined based on public (unadjusted) price quotations in active markets for identical assets and liabilities, include government bonds, shares and listed derivatives. Highly liquid securities with prices observable in an active market are classified at level 1. At this level, most Brazilian Government Bonds (mainly LTN, LFT, NTN-B and NTN-F), stocks on the stock exchange were classified. and other securities traded on the active market. Derivatives traded on stock exchanges are classified at level 1 of the hierarchy.

Level 2: These are derivatives of data other than quoted prices included in Level 1 that are observable for the asset or liability, directly (such as prices) or indirectly (derived from prices). When price quotations cannot be observed, Management, using its own internal models, makes its best estimate of the price that would be set by the market. These models use data based on observable market parameters as an important reference. The best evidence of the fair value of a financial instrument at initial recognition is the transaction price, unless the fair value of the instrument can be obtained from other market transactions carried out with the same instrument or similar instruments or can be measured using a valuation technique in which the variables used include only observable market data, particularly interest rates. These securities are classified at level 2 of the fair value hierarchy and are mainly composed of government securities (repurchase agreements, LCI Cancelable and NTN) in a less liquid market than those classified at level 1. For over-the-counter derivatives, for the valuation of financial instruments (primarily swaps and options), observable market data are normally used, such as exchange rates, interest rates, volatility, correlation between indices and market liquidity. In the pricing of the aforementioned financial instruments, the Black-Scholes model methodology is used (exchange rate options, interest rate index options, caps and floors) and the present value method (discounting future values ​​by curves market).

Level 3: These are derived from valuation techniques that include inputs for assets or liabilities that are not based on observable market variables (non-observable inputs). When there is information that is not based on observable market data, Banco Santander uses models developed internally to properly measure the fair value of these instruments. Level 3 mainly includes Instruments with low liquidity. Derivatives not traded on an exchange and that do not have observable information in an active market were classified as level 3, and are composed, including exotic derivatives.

In Thousands of Brazilian Real |  |  |  |  | 2021
Assets |  | Carrying Amount |  | Maket Value |  | 1 |  | 2 |  | 3
Interbank Investments |  | 33,629,318 |  | 33,629,318 |  | 1,224,817 |  | 25,912,368 |  | 6,492,133
Securities and Debt Instruments |  | 227,705,982 |  | 228,618,182 |  | 162,531,523 |  | 21,640,333 |  | 44,446,326
Derivatives Financial Instruments |  | 21,089,724 |  | 21,089,724 |  | - |  | 20,833,986 |  | 255,738
Lending Operations |  | 383,479,674 |  | 377,805,784 |  | - |  | - |  | 377,805,784
Total |  | 665,904,698 |  | 661,143,008 |  | 163,756,340 |  | 68,386,687 |  | 428,999,981
In Thousands of Brazilian Real |  |  |  |  |  | 2020
Assets |  | Carrying Amount |  | Maket Value |  | 1 |  | 2 |  | 3
Interbank Investments |  | 69,698,253 |  | 69,698,253 |  | - |  | 62,601,986 |  | 7,096,267
Securities and Debt Instruments |  | 233,248,338 |  | 234,844,495 |  | 135,118,884 |  | 65,394,153 |  | 34,331,458
Derivatives Financial Instruments |  | 32,840,075 |  | 32,840,075 |  | - |  | 32,258,845 |  | 581,230
Lending Operations |  | 338,110,717 |  | 341,503,600 |  | - |  | - |  | 341,503,600
Total |  | 673,897,383 |  | 678,886,423 |  | 135,118,884 |  | 160,254,984 |  | 383,512,555

We present below a comparison between the carrying amounts of the Bank's financial liabilities measured at a value other than the market value and their respective market values ​​on December 31, 2021 and December 31, 2020:

In Thousands of Brazilian Real |  |  |  |  |  | 2021
|  |  |  | Maket Value |  |  |  |  |  |
Liabilities |  | Carrying Amount |  |  | 1 |  | 2 |  | 3
Deposits |  | 403,639,687 |  | 403,598,886 |  | - |  | - |  | 403,598,886
Money Market Funding |  | 95,648,600 |  | 95,604,396 |  | - |  | 95,604,396 |  | -
Borrowings and Onlendings |  | 91,586,750 |  | 91,586,750 |  | - |  | - |  | 91,586,750
Funds from Acceptance and Issuance of Securities | 95,380,860 |  | 94,198,680 |  | - |  | - |  | 94,198,680
Derivatives Financial Instruments |  | 24,647,231 |  | 24,647,231 |  | - |  | 24,213,648 |  | 433,583
Debt Instruments Eligible to Compose Capital |  | 19,641,408 |  | 19,641,408 |  | - |  | - |  | 19,641,408
Total |  | 730,544,536 |  | 729,277,351 |  | - |  | 119,818,044 |  | 609,459,307
In Thousands of Brazilian Real |  |  |  |  |  | 2020
|  |  |  | Maket Value |  |  |  |  |  |
Liabilities |  | Carrying Amount |  |  | 1 |  | 2 |  | 3
Deposits |  | 390,051,798 |  | 390,093,916 |  | - |  | - |  | 390,093,916
Money Market Funding |  | 154,997,017 |  | 154,994,486 |  | - |  | 154,994,486 |  | -
Borrowings and Onlendings |  | 67,759,950 |  | 67,759,950 |  | - |  | - |  | 67,759,950
Funds from Acceptance and Issuance of Securities | 70,627,767 |  | 71,017,560 |  | - |  | - |  | 71,017,560
Derivatives Financial Instruments |  | 36,269,465 |  | 36,269,465 |  | - |  | 35,642,321 |  | 627,144
Debt Instruments Eligible to Compose Capital |  | 13,119,660 |  | 13,119,660 |  | - |  | - |  | 13,119,660
Total |  | 732,825,657 |  | 733,255,037 |  | - |  | 190,636,807 |  | 542,618,230

Management revised the criteria assigned to classify the level of assets measured at market value, presented exclusively for disclosure purposes and verified the need to change between level 3 and level 1 and from level 2 to level 1 in light of the observable data of Marketplace.

h) Recurring/non-recurring results

|  |  |  |  |  |  |  |  |  | Bank
|  |  |  |  |  | 2021 |  |  |  |  |  | 2020
|  | Recurring Income |  | Non-recurring Income |  | 01/01 to 12/31/2021 |  | Recurring Income |  | Non-recurring Income |  | 01/01 to 12/31/2020
Income Related to Financial Operations | 89,510,090 |  | - |  | 89,510,090 |  | 99,165,058 |  | - |  | 99,165,058
Expenses on Financial Operations |  | (56,931,567) |  | - |  | (56,931,567) |  | (83,174,153) |  | - |  | (83,174,153)
Gross Income Related to Financial Operations | 32,578,523 |  | - |  | 32,578,523 |  | 15,990,905 |  | - |  | 15,990,905
Other Operating Revenues (Expenses) (a/c) |  | (10,190,929) |  | (1,229,547) |  | (11,420,476) |  | (7,953,712) |  | (525,434) |  | (8,479,146)
Operating Income |  | 22,387,594 |  | (1,229,547) |  | 21,158,047 |  | 8,037,193 |  | (525,434) |  | 7,511,759
Non-Operating Income (b) |  | 58,835 |  | - |  | 58,835 |  | 73,290 |  | 167,000 |  | 240,290
Income Before Taxes on Income and Profit Sharing | 22,446,429 |  | (1,229,547) |  | 21,216,882 |  | 8,110,483 |  | (358,434) |  | 7,752,049
Income Tax and Social Contribution (a/b/c/d) | (4,287,286) |  | (73,492) |  | (4,360,778) |  | 7,847,547 |  | 124,639 |  | 7,972,186
Profit Sharing |  | (1,860,596) |  | - |  | (1,860,596) |  | (1,668,087) |  | - |  | (1,668,087)
Net Income |  | 16,298,547 |  | (1,303,039) |  | 14,995,508 |  | 14,289,943 |  | (233,795) |  | 14,056,148

|  |  |  |  | Consolidated |
|  |  |  |  | 2021 |  |  |  |  |  | 2020 |
| Recurring Income |  | Non-recurring Income |  | 01/01 to 12/31/2021 |  | Recurring Income |  | Non-recurring Income |  | 01/01 to 12/31/2020 |
Income Related to Financial Operations | 99,112,242 |  | - |  | 99,112,242 |  | 108,988,273 |  | - |  | 108,988,273
Expenses on Financial Operations |  | (59,797,367) |  | - |  | (59,797,367) |  | (87,750,952) |  | - |  | (87,750,952)
Gross Income Related to Financial Operations | 39,314,875 |  | - |  | 39,314,875 |  | 21,237,321 |  | - |  | 21,237,321 |
Other Operating Revenues (Expenses) (a/b) | (14,422,765) |  | (1,229,547) |  | (15,652,312) |  | (12,029,617) |  | (525,434) |  | (12,555,051) |
Operating Income |  | 24,892,110 |  | (1,229,547) |  | 23,662,563 |  | 9,207,704 |  | (525,434) |  | 8,682,270
Non-Operating Income |  | 9,000 |  | - |  | 9,000 |  | 71,967 |  | 167,000 |  | 238,967
Income Before Taxes on Income and Profit Sharing | 24,901,110 |  | (1,229,547) |  | 23,671,563 |  | 9,279,671 |  | (358,434) |  | 8,921,237 |
Income Tax and Social Contribution (a/b/c/d) | (6,429,733) |  | (73,492) |  | (6,503,225) |  | 6,414,815 |  | 124,652 |  | 6,539,467 |
Profit Sharing |  | (2,059,673) |  | - |  | (2,059,673) |  | (1,857,937) |  | - |  | (1,857,937)
Non-Controlling Interest |  | (120,949) |  | - |  | (120,949) |  | (133,387) |  | - |  | (133,387)
Net Income |  | 16,290,755 |  | (1,303,039) |  | 14,987,716 |  | 13,703,162 |  | (233,782) |  | 13,469,380

a) Amortization of goodwill on investment recognized as Other Operating Expenses in the amount before taxes of R$1,229,547 (2020 - R$425,434) in the Bank and in the Consolidated, with a net impact of R$1,139,307 (2020 - R$233,989).

b) Non-operating income from the sale of the equity interest in Super Pagamentos e Administração de Meios Eletrônicos S.A. in 2020, (see note 31.xv) in the amount before taxes of R$167,000 (net of taxes: R$100,200), in the Bank and in the Consolidated.

c) Action to Support the Fight against COVID-19 recognized as other operating expenses in 2020, with an impact before taxes amounting to R$100,000 (net of taxes, R$94,190), in the Bank and in the Consolidated.

d) Write-off of tax loss arising from the spun-off equity of Getnet (see note 14) in the amount of R$163,732, and tax effect on the amortization of goodwill on investment, in the amount of R$90,240.

# 33. Subsequent Events

Acquisition of Equity Interest in Monetus Investimentos Ltda. and Monetus Corretora de Seguros Ltda.

On January 4, 2022, upon compliance with the applicable conditions precedent, Pi Distribuidora de Títulos e Valores Mobiliários SA (“Pi”), Toro Corretora de Títulos e Valores Mobiliários SA (“Toro CTVM”), and Toro Investimentos SA ( “Toro Investimentos” and, together with Toro CTVM, “Toro”) formalized, together with the partners of Monetus Investimentos Ltda., and Monetus Corretora de Seguros Ltda. (together “Monetus”), the closing of the transaction resulting from the investment agreement and other covenants, formalized on June 15, 2021 (“Closing”). As a result of the Closing, Toro Investimentos now holds 100% of Monetus' share capital. Monetus, originally from Belo Horizonte, carries out its activities through an automated objective-based investment application, after considering the client's needs and risk profile, the application automatically creates, executes and monitors a diversified and personalized investment strategy that use the platform to undertake and serve customers in the best way.

Acquisition of Equity Interest in Mobills Labs Soluções em Tecnologia Ltda. and Mob Soluções em Tecnologia Ltda.

On January 4, 2022, upon compliance with the applicable conditions precedent, Pi Distribuidora de Títulos e Valores Mobiliários SA (“Pi”), Toro Corretora de Títulos e Valores Mobiliários SA (“Toro CTVM”), and Toro Investimentos SA ( “Toro Investimentos” and, together with Toro CTVM, “Toro”), formalized, together with the partners of Mobills Labs Soluções em Tecnologia Ltda., and Mob Soluções em Tecnologia Ltda (together “Mobills”), the closing of the transaction resulting from of the investment agreement and other covenants, formalized on June 15, 2021 (“Closing”). As a result of the Closing, Toro Investimentos now holds 100% of the share capital of Mobills. Based in Ceará, Mobills has a variety of financial applications that have a large user base, especially related to financial planning.

Acquisition of Equity Interest in CSD Central de Serviços de Registro e Depósito aos Mercados Financeiro e de Capitais S.A.

On January 21, 2022, Santander Corretora de Seguros, Investimentos e Serviços S.A. ("Santander Corretora"), together with other investors – including Banco BTG Pactual S.A. and CBOE III, LLC – formalized, together with CSD Central de Serviços de Registro e Depósito aos Mercados Financeiro e de Capitais S.A. ("CSD BR ") and their respective shareholders, an investment agreement for the subscription of a minority equity interest in CSD BR ("Transaction "). CSD BR operates as a register of financial assets, derivatives, securities and insurance policies, authorized by the Central Bank of Brazil, the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários) and the Superintendence of Private Insurance (Superintendência de Seguros Privados). The effectiveness of the Transaction will be subject to the conclusion of the definitive instruments and the implementation of certain customary precedent conditions, with the applicable regulatory approvals. After the implementation of these conditions and with the closing of the Transaction, Santander Corretora's equity interest in CSD BR will be 20% (twenty percent).

Deliberation on Interim Dividends and Interest on Equity

The Board of Directors, at a meeting held on February 1, 2022, approved the proposal of the Executive Board, ad referendum of the Annual General Meetings to be held in 2022 and 2023 respectively, for the distribution of Interim Dividends, in the amount of R$ 1,300,000,000.00 (one billion, three hundred million reais), based on the profit for the year calculated until the balance sheet of December 31, 2021 and Interest on Equity, in the gross amount of R$ 1,700,000,000.00 (one billion and seven hundred million reais), based on the balance of the Company's Dividend Equalization Reserve. Shareholders who are registered in the Bank's records at the end of February 10, 2022 (inclusive) will be entitled to Dividends and Interest on Equity. Thus, as of February 11, 2022 (inclusive), the Bank's shares will be traded “Ex-Dividends and Ex-Interest on Equity”. The amount of Dividends and Interest on Equity will be paid as of March 4, 2022. Dividends will be fully allocated to the minimum mandatory dividends to be distributed by the Bank, referring to the year 2021 and Interest on Equity will be imputed in full to the mandatory minimum dividends to be distributed by the Bank, referring to the year 2022, without any monetary restatement for both. The decision was approved by the Fiscal Council, as per the meeting held on the same date.

# Composition of Management Bodies as of December 31, 2021.

Administrative Council

Álvaro Antônio Cardoso de Souza – President (independente)

Sérgio Agapito Lires Rial - Vice-President

Deborah Patricia Wright - Counselor (independent)

Deborah Stern Vieitas - Counselor (independent)

Jose Antonio Alvarez Alvarez – Counselor

José de Paiva Ferreira – Counselor

José Garcia Cantera – Counselor

Marília Artimonte Rocca - Counselor (independent)

Pedro Augusto de Melo - Counselor (independent)

Audit Committee

Deborah Stern Vieitas - Coordinator

Maria Elena Cardoso Figueira - Financial Expert

René Luiz Grande - Member

Vania Maria da Costa Borgerth - Member

Risk and Compliance Committee

Pedro Augusto de Melo - Coordinator

Álvaro Antonio Cardoso de Souza - Member

José de Paiva Ferreira - Member

Virginie Genès-Petronilho - Member

Sustainability Committee

Marilia Artimonte Rocca - Coordinator

Carlos Aguiar Neto - Member

Carlos Rey de Vicente - Member

Mario Roberto Opice Leão - Member

Tasso Rezende de Azevedo - Member

Nomination and Governance Committee

Álvaro Antonio Cardoso de Souza - Coordinator

Deborah Patricia Wright - Member

Luiz Fernando Sanzogo Giogi - Member

Compensation Committee

Deborah Patricia Wright - Coordinator

Álvaro Antonio Cardoso de Souza - Member

Luiz Fernando Sanzogo Giogi - Member

Fiscal Council*

Louise Barsi - Effective member

Manoel Marcos Madureira - Substitute

Luciano Faleiros Paolucci - Substitute

Valmir Pedro Rossi – Substitute

Cassia Maria Matsuno Chibante - Effective member**

José Roberto Machado Filho – Effective member**

*The Fiscal Council was installed at the Annual General Meeting held on April 30, 2021, and the members were approved by the Central Bank of Brazil on July 22, 2021, the date on which they took office in their respective positions, with term of office until the Meeting Ordinary General Meeting of 2022.

**Possession pending approval by BACEN.

Executive Board

Chief Executive Officer

Sérgio Agapito Lires Rial

Vice-President Executive Officer and Investor Relations Officer

Angel Santodomingo Martell

Vice-President Executive Officers

Alberto Monteiro de Queiroz Netto

Alessandro Tomao

Antonio Pardo de Santayana Montes

Carlos Rey de Vicente

Ede Ilson Viani

Jean Pierre Dupui

Juan Sebastian Moreno Blanco

Mário Roberto Opice Leão

Patrícia Souto Audi

Vanessa de Souza Lobato Barbosa

Officers without specific designation

Adriana Marques Lourenço de Almeida

Amancio Acúrcio Gouveia

Ana Paula Vitali Janes Vescovi

André de Carvalho Novaes

Andrea Marques de Almeida

Carlos Aguiar Neto

Cassio Schmitt

Claudenice Lopes Duarte

Daniel Fantoni Assa

Elita Vechin Pastorelo Ariaz

Francisco Soares da Silva Junior

Franco Luigi Fasoli

Geraldo José Rodrigues Alckmin Neto

Germanuela de Almeida de Abreu

Gustavo Alejo Viviani

Igor Mario Puga

Jean Paulo Kambourakis

João Marcos Pequeno De Biase

José Teixeira de Vasconcelos Neto

Luis Guilherme Mattos de Oliem Bittencourt

Luiz Masagão Ribeiro Filho

Marcelo Augusto Dutra Labuto

Maria Teresa Mauricio da Rocha Pereira Leite

Marilize Ferrazza Santinoni

Marino Alexandre Calheiros Aguiar

Ramón Sanchez Díez

Ramon Sanchez Santiago

Reginaldo Antonio Ribeiro

Ricardo Olivare de Magalhães

Roberto Alexandre Borges Fischetti

Robson de Souza Rezende

Rogério Magno Panca

Sandro Kohler Marcondes

Sandro Mazerino Sobral

Sandro Rogério da Silva Gamba

Thomas Gregor Ilg

Vítor Ohtsuki

Accountant

Diego Santos Almeida – CRC Nº 1SP316054/O-4

# Declaration of directors on the Financial Statements

For the purposes of complying with the provisions of article 25, paragraph 1, item VI, of the Securities Commission (CVM) Instruction 480, of December 7, 2009, the members of the Executive Board of Banco Santander (Brasil) SA (Banco Santander or Company) declare that they discussed, reviewed and agreed with the Financial Statements prepared by Banco Santander´s BRGAAP criteria, for the year ended December 31, 2021, and the documents that comprise them, being: Management Report, balance sheets, statement results, statement of changes in equity, statement of cash flows, statement of added value and explanatory notes, which were prepared in accordance with accounting practices adopted in Brazil, in accordance with Law No. 6,404, of December 14, 1976 (Brazilian Corporate Law), the rules of the National Monetary Council, of the Central Bank of Brazil according to the model of Plan C of the National Financial System Institutions (COSIF) and other applicable regulations and legislation. The aforementioned Financial Statements and the documents that comprise them, were the subject of a report without reservation by the Independent Auditors regarding the recommendation for approval issued by the Company's Audit Committee and the favorable opinion of the Company's Fiscal Council.

Members of the Executive Board of Banco Santander on December 31, 2021:

Chief Executive Officer

Sérgio Agapito Lires Rial

Vice-President Executive Officer and Investor Relations Officer

Angel Santodomingo Martell

Vice-President Executive Officers

Alberto Monteiro de Queiroz Netto

Alessandro Tomao

Antonio Pardo de Santayana Montes

Carlos Rey de Vicente

Ede Ilson Viani

Jean Pierre Dupui

Juan Sebastian Moreno Blanco

Mario Roberto Opice Leão

Patrícia Souto Audi

Vanessa de Souza Lobato Barbosa

Officers without specific designation

Adriana Marques Lourenço de Almeida

Amancio Acúrcio Gouveia

Ana Paula Vitali Janes Vescovi

André de Carvalho Novaes
Andrea Marques de Almeida

Carlos Aguiar Neto

Cassio Schmitt

Claudenice Lopes Duarte

Daniel Fantoni Assa

Elita Vechin Pastorelo Ariaz

Francisco Soares da Silva Junior

Franco Luigi Fasoli

Geraldo José Rodrigues Alckmin Neto

Germanuela de Almeida de Abreu

Gustavo Alejo Viviani

Igor Mario Puga

Jean Paulo Kambourakis

João Marcos Pequeno De Biase

José Teixeira de Vasconcelos Neto

Luis Guilherme Mattos de Oliem Bittencourt

Luiz Masagão Ribeiro Filho

Marcelo Augusto Dutra Labuto

Maria Teresa Mauricio da Rocha Pereira Leite

Marilize Ferrazza Santinoni

Marino Alexandre Calheiros Aguiar

Ramón Sanchez Díez

Ramon Sanchez Santiago

Reginaldo Antonio Ribeiro

Ricardo Olivare de Magalhães

Roberto Alexandre Borges Fischetti

Robson de Souza Rezende

Rogério Magno Panca

Sandro Kohler Marcondes

Sandro Mazerino Sobral

Sandro Rogério da Silva Gamba

Thomas Gregor Ilg

Vítor Ohtsuki

# Directors' Statement on Independent Auditors’ Report

For the purposes of complying with the provisions of article 25, paragraph 1, item V, of the Securities and Exchange Commission (CVM) Instruction 480, of December 7, 2009, the members of the Executive Board of Banco Santander (Brasil) SA (Banco Santander or Company) declare that they have discussed, reviewed and agreed with the Financial Statements by the Banco Santander BRGAAP criterion, which includes the Independent Auditors' Report, related to the Financial Statements by Banco Santander BRGAAP criterion, for the year ended December 31, 2021, and the documents that comprise them, being: Performance Comments, balance sheets, income statement, statement of changes in equity, statement of cash flows, statement of added value and explanatory notes, which were prepared in accordance with accounting practices adopted in Brazil, in accordance with Law No. 6,404, of December 14, 1976 (Brazilian Corporate Law) tions), the rules of the National Monetary Council, the Central Bank of Brazil in accordance with the model of the Accounting Plan of the Institutions of the National Financial System (COSIF) and other applicable regulations and legislation. The aforementioned Financial Statements and the documents that comprise them, were the subject of a report without reservation by the Independent Auditors regarding the recommendation for approval issued by the Company's Audit Committee and the favorable opinion of the Company's Fiscal Council.

Members of the Executive Board of Banco Santander on December 31, 2021:

Chief Executive Officer

Sérgio Agapito Lires Rial

Vice-President Executive Officer and Investor Relations Officer

Angel Santodomingo Martell

Vice-President Executive Officers

Alberto Monteiro de Queiroz Netto

Alessandro Tomao

Antonio Pardo de Santayana Montes

Carlos Rey de Vicente

Ede Ilson Viani

Jean Pierre Dupui

Juan Sebastian Moreno Blanco

Mario Roberto Opice Leão

Patrícia Souto Audi

Vanessa de Souza Lobato Barbosa

Officers without specific designation

Adriana Marques Lourenço de Almeida

Amancio Acúrcio Gouveia

Ana Paula Vitali Janes Vescovi

André de Carvalho Novaes
Andrea Marques de Almeida

Carlos Aguiar Neto

Cassio Schmitt

Claudenice Lopes Duarte

Daniel Fantoni Assa

Elita Vechin Pastorelo Ariaz

Francisco Soares da Silva Junior

Franco Luigi Fasoli

Geraldo José Rodrigues Alckmin Neto

Germanuela de Almeida de Abreu

Gustavo Alejo Viviani

Igor Mario Puga

Jean Paulo Kambourakis

João Marcos Pequeno De Biase

José Teixeira de Vasconcelos Neto

Luis Guilherme Mattos de Oliem Bittencourt

Luiz Masagão Ribeiro Filho

Marcelo Augusto Dutra Labuto

Maria Teresa Mauricio da Rocha Pereira Leite

Marilize Ferrazza Santinoni

Marino Alexandre Calheiros Aguiar

Ramón Sanchez Díez

Ramon Sanchez Santiago

Reginaldo Antonio Ribeiro

Ricardo Olivare de Magalhães

Roberto Alexandre Borges Fischetti

Robson de Souza Rezende

Rogério Magno Panca

Sandro Kohler Marcondes

Sandro Mazerino Sobral

Sandro Rogério da Silva Gamba

Thomas Gregor Ilg

Vítor Ohtsuki

# Audit Comittee Report

The Audit Committee of Banco Santander (Brasil) S.A. ("Santander"), lead institution of the Economic and Financial Conglomerate ("Conglomerate”), acts as single entity for all the institutions part of the Conglomerate, including those entities under the supervision of the Superintendence of Private Insurance - SUSEP.

According to its Charter, available on Santander´s Investors Relations website (www.ri.santander.com.br), the Audit Committee, among its attributions, advises the Board of Directors on the oversight of the reliability of the financial statements, its compliance with the applicable rules and legislation, the effectiveness and independence of the work performed by the internal and independent auditors, as well as on the effectiveness of the internal control system and operational risk management. Besides that, the Audit Committee also recommends amendments and improvements on policies, practices and procedures identified in the course of its duties, whenever deemed necessary.

The Audit Committee is currently composed of four independent members, elected according to resolutions taken at the meetings of the Board of Directors held on May 03 and June 1st, 2021. It acts through meetings with executives, internal and independent auditors and specialists, conducts analyzes based on the reading of documents, and information submitted to it, as well as taking initiatives in relation to other procedures deemed necessary. The Audit Committee's evaluations are primarily based on information received from Senior Management, internal and independent auditors and the areas responsible for monitoring internal controls and operational risks.

The Audit Committee's minutes and reports are regularly sent to the Board of Directors, with which the Coordination of the Audit Committee met regularly in the second semester of 2021.

With regard to its attributions, the Audit Committee performed the following activities:

I – Financial Statements

BrGaap and Prudential Conglomerate - The Audit Committee reviewed the financial statements of the institutions and companies that comprise the Conglomerate, confirming its adequacy. In this regard, it acknowledged the results recorded in the second semester and year ended December 31, 2021, of the Company and the Prudential Conglomerate in BrGaap standard, in addition to the individual and consolidated Financial Statements.

The Audit Committee held meetings with the independent auditors and professionals responsible for the accounting and preparation of the financial statements, prior to their disclosure.

II – Internals Controls and Operational Risks Management

The Audit Committee received information and held meetings with the Executive Vice-Presidency of Risks (CRO) - including attending meetings of the Risk and Compliance Committee, whit the Executive Vice-Presidency of Tactics, whit the Technology and Operations, whit the Compliance Directorship and the relevant professionals responsible for the management, implementation and dissemination of the Conglomerate's internal controls and risk management culture and infrastructure. It also verified cases dealt by the “Canal Aberto” (Whistleblowing channel) and by the Information Security and Anti-Fraud areas. Such verifications were conducted in accordance with Resolutions CMN 2,554/98, 4,557/17, 4,893/21 and 4,968/21 Sarbanes-Oxley Act (SOX) and Circular SUSEP 249/04.

III – Internal Audit

The Audit Committee met formally with the Officer responsible for the area and with other Internal Audit representatives on several occasions during the second semester of 2021, in addition to had checked the reports about the work performed, the reports issued and their respective conclusions and recommendations, highlighting (i) the fulfillment of recommendations for improvements in areas which controls were considered "To be improved"; and (ii) the results of the improvements applied to monitor and comply with the recommendations and their action plans for continuous progress. In several other occasions, Internal Audit professionals attended the meetings of the Audit Committee, providing expert information.

IV – Independent Audit

Regarding the Independent Audit work performed by PricewaterhouseCoopers Auditores Independentes ("PwC"), the Audit Committee met formally on several occasions in the second semester of 2021. At these meetings the following topics were highlighted: discussions involving the financial statements for the year ended December 31, 2021, accounting practices, the main audit matters (“PAA’s”) and eventual deficiencies and recommendations raised in the internal control report and the detailed report on the revision of “Allowance for Doubtful Accounts”, in accordance with CMN Resolution nº 2.682/99. The Audit Committee evaluated the proposals submitted by PwC for the performance of other services, in order to verify the absence of conflicts of interest or potential risk of loss of independence. The Audit Committee met with KPMG Auditores Independentes (“KPMG”), responsible for the audit of Banco RCI Brasil S.A., member of the Conglomerate.

V – Ombudsman

In accordance with Resolution CMN 4,860/20 and CNSP Resolution 279/13, specific works were carried out in the second semester of 2021, which were presented to the Audit Committee that discussed and evaluated them. In addition to reporting the work, the Committee also took note of the Ombudsman's half-yearly report, both from Santander and its affiliates, and from the societies in the Conglomerate that have their own Ombudsman.

VI - Regulatory Bodies

The Audit Committee monitors and acts on the results of the inspections and notes of regulatory and self-regulatory bodies and the respective measures adopted by management to comply with such notes, accompanies the new regulations and holds meetings with regulators, whenever requested. In the case of the Central Bank of Brazil, it holds regular meetings with the supervisors of the Banking Supervision Department - Desup and the Conduct Supervision Department - Decon.

VII – Others Activities

Besides the activities described above, as part of the work inherent to its attributions, the Audit Committee met with senior management and several areas of the Conglomerate, furthering its

analysis, with emphasis on the following topics: (i) monitoring of regulatory capital; (ii) monitoring inspections reports and notes from regulators, ongoing inspections and the correspondent action plans adopted to meet the requests; (iii) monitoring of cybersecurity themes; (iv) monitoring of topics related to conduct, PLD/CFT, policies and action plans for continuous improvements; (v) monitoring of the activities of the customer relations department, its action plans and results; (vi) monitoring of tax, labor and civil litigation; (vii) review and approval of the Tax Credit Realization Technical Study; and (viii) monitoring of provisions and topics related to PCLD. The Audit Committee participated in the meeting of the Sustainability Committee to known, among others, of the socio-environmental indicators that guide the business.

During the period, members of the Audit Committee also participated in training, lectures and programs on topics related to its activities, and on regulations of interest and impact to the Conglomerate.

VIII – Conclusion

Based on the work and assessments carried out, and considering the context and scope in which it carries out its activities, the Audit Committee concluded that the work carried out is appropriate and provides transparency and quality to the Financial Statements of Banco Santander (Brasil) S.A. and the Prudential Conglomerate for the year ended in December 31, 2021, recommending their approvals by the Board of Directors of Santander.

São Paulo, January 27, 2022.

Audit Committee

Deborah Stern Vieitas – Coordinator

Maria Elena Cardoso Figueira – Financial Expert

René Luiz Grande

Vania Maria da Costa Borgerth

# Fiscal Council’s Opinion

The members of the Fiscal Council, in the exercise of their legal and statutory duties, reviewed the Management Report and the Financial Statements of Banco Santander (Brasil) S.A for the fourth quarter of 2021 and the fiscal year of 2021 and concluded, based on the examinations performed, in the clarifications provided by Management, also considering the unqualified opinion of PwC Auditores Independentes, that these items, examined in light of accounting practices adopted in Brazil, applicable to institutions authorized to operate by the Brazilian Central Bank, adequately reflect the Company's financial and equity position.

São Paulo, February 01, 2022.

FISCAL COUNCIL

Manoel Marcus Madureira – Chairman

Luciano Faleiros Paolucci

Louise Barsi

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

Date: February 02, 2022

Banco Santander (Brasil) S.A.
By: | /S/ Amancio Acurcio Gouveia |
| Amancio Acurcio Gouveia Officer Without Specific Designation |

By: | /S/ Andrea Marques de Almeida |
| Andrea Marques de Almeida Vice - President Executive Officer |