5A. Operating Results The following discussion of our financial condition and results of operations should be read in conjunction with our consolidated financial statements for the years ended December 31, 2025, 2024 and 2023 and the related notes thereto, and with the financial information presented under the section entitled “Item 3. Key Information—A. Selected Financial Data” included elsewhere in this annual report. The preparation of the consolidated financial statements referred to in this section required the adoption of assumptions and estimates that affect the amounts recorded as assets, liabilities, revenue and expenses in the years and periods presented and are subject to certain risks and uncertainties. Our future results may vary substantially from those indicated because of various factors that affect our business, including, among others, those mentioned in the sections “Forward-Looking Statements” and “Item 3. Key Information—D. Risk Factors,” and other factors discussed elsewhere in this annual report. Our consolidated financial statements for the years ended December 31, 2025, 2024 and 2023, prepared in accordance with IFRS as issued by the IASB and the report of our independent registered public accounting firm are included in “Item 18. Financial Statements.” 148 Table of Contents Financial Presentation We have prepared our consolidated financial statements for the years ended December 31, 2025, 2024 and 2023 in accordance with IFRS, as issued by the IASB and interpretations issued by the IFRS Interpretation Committee. See “Presentation of Financial and Other Information” for additional information. Principal Factors Affecting Our Financial Condition and Results of Operations Brazilian Macroeconomic Environment As a Brazilian bank, we are significantly affected by the general economic environment in Brazil. While Brazilian GDP increased in 2025, driven by fiscal incentives granted by the Brazilian government, historically low unemployment levels and a strong performance in certain economic sectors, we cannot assure you that this trend will continue, especially given persistent fiscal challenges, elevated interest rates, global economic uncertainties, and inflationary pressures influenced by domestic and international factors. The Brazilian economic environment has historically been characterized by significant variations in economic growth, inflation and currency exchange rates. Our results of operations and financial condition are influenced by these factors and the effect that these factors have on employment rates, the availability of credit and average wages in Brazil. The following table presents key data of the Brazilian economy for the periods indicated: As of and For the Year Ended December 31, 2025 2024 2023 GDP growth(1) 2.2 % 3.4 % 3.2 % CDI Rate 14.4 % 10.9 % 13.0 % TJLP 9.1 % 7.6 % 6.6 % SELIC rate 15.00 % 12.25 % 11.75 % Selling exchange rate (at period end) R$ per U.S.$1.00 5.5024 6.1923 4.8413 Depreciation (appreciation) of the real against the U.S. dollar (11.4) % 27.6 % (7.2) % Average real to U.S. exchange rate per U.S.$1.00(2) 5.5855 5.3895 4.9953 Inflation (IGP-M) (1.0) % 6.5 % (3.2) % Inflation (IPCA) 4.3 % 4.8 % 4.6 % Sources: BNDES, Brazilian Central Bank, FGV and IBGE. (1) GDP growth for 2025 is based on Santander Brasil’s internal estimates. For 2024, the source is the IBGE’s revised series. (2) Average of the selling exchange rate for the business days during the period. Despite the approval of a new fiscal framework and some measures to increase tax revenues, prospects for public expenditures to continue growing over time and for the economy to slow down into the future have stoked fears in financial markets about Brazil’s already high public debt. This has resulted in a persistent risk premium, a limitation in the room for the Brazilian real to strengthen and volatility in financial asset prices. Brazil’s economy was also severely affected by the COVID-19 pandemic starting in 2020. Brazilian GDP recovered to an extent in 2021, in part as a result of Brazil’s ongoing vaccination program and the relaxation of certain restrictions allowing a progressive resumption of economic activities, as set out under “—Impact of COVID-19” below, but considerable uncertainty remains as to the duration and severity of the COVID-19 pandemic and its economic effects. In 2022, the relaxation of COVID-19 restrictions and continued fiscal incentives granted by Brazilian government supported Brazilian GDP growth, which reached 3.0% in 2022. In 2023, fiscal incentives continued to have an important effect, but the contribution of a record harvest of grains was key for the Brazilian GDP to have increased 3.2% in the period. In 2024, in response to the payment of a sizeable volume of delayed court-ordered debts in the first half of 2024, the maintenance of fiscal incentives, historically low unemployment levels and a strong performance in certain economic sectors, the Brazilian economy grew 3.4%. 149 Table of Contents In 2025, Brazil faced high inflation, elevated interest rates, a less favorable global economic environment and continued geopolitical uncertainty stemming from the war in Ukraine and tensions in the Middle East. In addition, commodity-related sectors did not contribute to economic growth to the same extent as in the recent past, and monetary policy remained tight as inflation stayed above the target range and fiscal pressures persisted. As a result of these factors, GDP growth in 2025 was lower than in 2024. Any slowdown in Brazil’s economic growth, or adverse changes in interest rates, unemployment levels or general price stability, could adversely affect our business, financial condition and results of operations. In 2026, Brazil’s macroeconomic environment is expected to be characterized by moderate growth, supported by residual fiscal stimulus and the initial phase of monetary easing. Even so, activity remains constrained by high structural capital costs, tighter credit conditions and a smaller statistical carry-over from the previous year. Inflation continues to ease gradually, driven by lower food prices and the lagged effects of restrictive monetary policy, although projections and expectations remain above the official target range. The labor market shows early signs of softening after several years of resilience, and the exchange rate is likely to operate under a more volatile global backdrop as the broad depreciation of the U.S. dollar observed in 2025 is not expected to continue. Externally, Brazil’s financing needs should decline as import growth moderates and foreign direct investment remains solid, but the international environment remains less favorable due to slower global growth, persistent geopolitical fragmentation and mixed commodity dynamics. At the same time, fiscal challenges persist, with public debt expected to rise further despite compliance with the fiscal framework. Any deterioration in economic activity, higher-than-expected inflation or interest rates, reduced credit availability or increased volatility in global markets could adversely affect Brazil’s macroeconomic outlook and, consequently, our business, financial condition and results of operations. For more information, see “Item 3. Key Information—D. Risk Factors—Risks Relating to Brazil and Macroeconomic and Political Conditions in Brazil and Globally—Inflation, government efforts to control inflation, and changes in interest rates may hinder the growth of the Brazilian economy and could have an adverse effect on us.” War in Ukraine and uncertainties following the ceasefire agreement in the Middle East The persistence of the war between Russia and Ukraine has continued to cause humanitarian problems in Europe as well as volatility in financial markets globally, heightened inflation, shortages and increases in the prices of energy, oil, gas and other commodities. In response to the war in Ukraine, several countries, including the United States, the European Union member states, the United Kingdom and other UN member states, have imposed severe sanctions on Russia and Belarus. Furthermore, we believe that the risk of cyberattacks on companies and institutions has increased and could increase even further as a result of the above-mentioned conflicts and in response to the sanctions imposed, which could adversely affect our ability to maintain or enhance our cybersecurity and data protection measures. The continuance or escalation of the war, including any extension to other countries in the region, has led to, and could continue to lead to, further increases in energy prices, including oil and gas (particularly if supplies to Europe are interrupted), and inflationary pressures, which in turn could lead to higher interest rates and market volatility. In addition, the war has exacerbated supply chain problems, particularly for those businesses most sensitive to rising energy prices. The war and its effects have exacerbated and could continue to exacerbate the slowdown in the global economy and could negatively affect the ability of some of our customers to meet their obligations, especially those with more exposure to the Russian or Ukrainian markets. The conflict between Israel and Hamas has also stoked fears about a broader war in the Middle East and the impact this could have on the global economy generally and oil markets in particular. While we do not have a physical presence in Russia, Ukraine or in the Middle East, and our direct exposure to Russian, Ukrainian or Middle Eastern markets and assets is not material, the impact of the war in Ukraine and uncertainties following the ceasefire agreement in the Middle East, and the related sanctions imposed on global markets and institutions, the impact on macroeconomic conditions generally, and other potential future geopolitical tensions and consequences arising from the war remain uncertain and may exacerbate our operational risk. For more information, see “Item 3. Key Information—D. Risk Factors—Risks Relating to Brazil and Macroeconomic Conditions in Brazil and Globally—Geopolitical conflicts and related uncertainties, such as the continuance or escalation of the war in Ukraine and the uncertainties following the ceasefire agreement in the Middle East, could materially affect our financial position and increase our operational risk.” 150 Table of Contents Interest rates In 2021, the Brazilian Central Bank began a monetary tightening cycle in response to rising inflation, the depreciation of the real, and a perception of recovery in certain economic activities following the easing of COVID-19-related restrictions. The SELIC rate increased from 9.25% as of December 31, 2021, to 13.75% as of December 31, 2022 (the highest level since the end of 2016). In 2023, the Brazilian Central Bank initiated an easing cycle as inflationary pressures subsided, reducing the SELIC rate to 11.75% as of December 31, 2023. The easing continued into the first half of 2024, with the SELIC rate reaching 10.50% in May 2024. However, inflationary pressures resurfaced in mid-2024, driven by adverse climatic conditions affecting food and energy prices, a significant devaluation of the real following the U.S. presidential election, and persistent fiscal challenges in Brazil. In response, the Brazilian Central Bank resumed tightening monetary policy, increasing the SELIC rate to 11.25% in November 2024 and 12.25% in December 2024. These adjustments reflect the Brazilian Central Bank’s efforts to balance inflation control with economic stability amid elevated interest rates globally and domestic economic concerns. In 2025, the Brazilian Central Bank continued to raise the SELIC rate, which reached 15.00% in mid-2025, as part of its efforts to address elevated inflation and inflation expectations. The SELIC rate was maintained at that level through the end of 2025. As of the date of this annual report, the SELIC rate is 15.00%. An increase in the SELIC rate may adversely affect us by reducing the demand for our credit and investment products, increasing funding costs, and increasing in the short run the risk of default by our customers. Conversely, a decrease in the SELIC rate may have a positive impact on our operations by promoting volume growth, even though it may also create pressure on asset-side spreads, while liability spreads should remain stable or even improve. The following table presents the low, high, average and period end SELIC rate since 2021, as reported by the Brazilian Central Bank: Low High(1) Average(2) Period-End Year 2021 2.00 9.25 4.57 9.25 2022 9.25 13.75 12.57 13.75 2023 11.75 13.75 13.29 11.75 2024 10.50 12.25 10.91 12.25 2025 13.25 15.00 14.56 15.00 (1) Highest month-end rate. (2) Average of month-end rates during the period. Our assets are predominantly fixed rate and our liabilities are predominantly floating. The resulting exposure to increases in market rates of interest is modified by our use of cash flow hedges to convert floating rates to fixed, but we maintain an exposure to interest rate movements. For more information about our market risk, see “Item 11. Quantitative and Qualitative Disclosures about Market Risk—Credit Risk.” Credit Volume and Quality in Brazil In 2023, outstanding credit increased at a slower rate than in 2022 as the SELIC rate continued moving higher in that period. However, the ratio of nonperforming loans to individuals managed to remain nearly unchanged as a result of an increase in the income stemming from tight labor market conditions and a government-sponsored initiative for banks to renegotiate part of the credit in arrears (5.6% in 2023 as compared to 5.9% in 2022). In 2024, in response to tight labor market conditions and the extension of fiscal incentives by the Brazilian federal government, outstanding credit expanded 10.9% as compared with the previous year, while the ratio of nonperforming loans to individuals fell to 3.5% (from 3.7% in December 2023). However, this combination did not prevent an increase in the household debt burden in the period (24.2% in 2024 as compared to 23.8% in 2023). In 2025, higher interest rates, slower economic growth and renewed inflationary In 2025, higher interest rates, slower economic growth and renewed inflationary indebtedness remained issues amid tighter monetary and fiscal conditions. 151 Table of Contents As of December 31, 2025 2024 2023 (in billions of R$) Total Credit Outstanding (1) 7,123 6,463 5,794 Earmarked credit 3,032 2,695 2,408 Non-earmarked based credit 4,090 3,768 3,386 of which: Corporate 1,638 1,601 1,462 Individuals (retail) 2,453 2,167 1,924 (1) Some figures may be subject to revision by the Brazilian Central Bank. Source: Brazilian Central Bank. Foreign Exchange Rates Our policy is to maintain limited foreign exchange rate exposure by seeking to match foreign-currency-denominated assets and liabilities as closely as possible, including through the use of derivative instruments. In 2025, we recorded foreign exchange negative exposure of R$44.0 million, compared to foreign exchange exposure of R$34.0 million in 2024 and R$62.9 million in 2023. These results were due to the variation of the U.S. dollar against the real on our asset and liability positions in U.S. dollar-denominated instruments during these years. These foreign exchange gains and losses were offset in large part in each year by a corresponding loss or gain on derivatives entered into to hedge this exposure. Such losses and gains are recorded under “Exchange differences (net).” For further information see “Item 5. Operating and Financial Review and Prospects—A. Operating Results—Results of Operations for the Years Ended December 31, 2025, 2024 and 2023—Results of Operations—Gains (losses) on Financial Assets and Liabilities (net) and Exchange Differences (net). The Brazilian currency has, during the last decades, experienced frequent and substantial variations in relation to the U.S. dollar and other foreign currencies. In 2023, the R$/U.S.$ exchange rate fluctuated between R$4.7202 and R$5.4459 per U.S.$1.00. As of December 31, 2023 the exchange rate was R$4.8413 per U.S.$1.00. The exchange rate experienced significant volatility in 2024, driven by international factors (such as uncertainty about the conduct of monetary policies in advanced economies and the aggravation of geopolitical tensions) and domestic issues (such as concerns regarding fiscal policy and delays in the approval of important legislative measures), fluctuating between R$4.5293 and R$6.1991 per U.S.$1.00. In 2025, the real continued to exhibit volatility in response to global financial conditions and domestic fiscal concerns, with the exchange rate fluctuating between R$5.2729 and R$6.2086 per U.S. $1.00. As of December 31, 2025, the exchange rate was R$5.5024 per U.S.$1.00. Depreciation of the real relative to the U.S. dollar has created additional inflationary pressures in Brazil, which has led to increases in interest rates and limited Brazilian companies’ access to foreign financial markets, and prompted the adoption of recessionary policies by the Brazilian government. In 2023, as inflationary pressures of 2022 decreased, the Brazilian Central Bank began to reduce the SELIC rate from 13.75% (the highest level since the end of 2016) to 10.50% in May 2024. Depreciation of the real due to international and domestic issues combined with inflationary pressures resulting from adverse climate events affecting food and energy supplies, led the Brazilian Central Bank to resume a monetary tightening cycle in September 2024, which pushed the SELIC rate up to 15.0% by mid-2025. In 2025, the SELIC rate stood at 15.00% as the Brazilian Central Bank maintained a restrictive monetary stance in light of persistent inflationary pressures and exchange-rate volatility. Inflation In recent years, inflation has oscillated around the CMN’s target, set annually by the CMN. However, recent inflationary shocks have pushed Brazil’s inflation rate above the target in the past few years. From 2005 to 2018, the target level was 4.5%, with a tolerance interval of 2.0 percentage points until 2016, when the tolerance band was narrowed to 1.5 percentage points. The CMN subsequently lowered the target to 4.25% in 2019, with 0.25 percentage point decreases implemented annually until it reaches 3.00%. In June 2023, the CMN made the 3.00% inflation target permanent for subsequent years. 152 Table of Contents In 2019, as a result of temporary price shocks affecting edible items, inflation ended the year slightly above the targeted level, at 4.31%. In 2020, inflation increased to 4.5%. In 2021, inflation continued to accelerate and reached 10.06% at the end of the year, as a result of several shocks that ranged from problems in global supply chains – which increased prices at the wholesale level – to climate setbacks – which hit energy and foodstuff prices –, as well as continued depreciation of the Brazilian real. Similarly to what happened in the beginning of 2018, the Brazilian Central Bank delivered a letter to the CMN explaining why it failed to meet the inflation target and what actions would be implemented to ensure that inflation would converge to target in coming years. In 2022, inflationary pressures escalated in Brazil, including as a result of the ongoing war between Ukraine and Russia, supply chain issues, the continued COVID-19 pandemic (particularly in China) and increases in energy prices. As a result, inflation peaked in 2022 at multiple-year highs of 12.1% in Brazil in April 2022 (as measured by the IPCA in year-over-year terms) and 9.1% in the United States in June 2022 (as measured by the Consumer Price Index), the highest levels since 2003 in Brazil and 1981 in the United States. Accumulated inflation for the year ended December 31, 2022, was 5.79% in Brazil and 6.5% in the United States. This resulted in tighter monetary policy by the Brazilian Central Bank, which increased the SELIC rate from a low of 2.0% as of the end of 2020 to 13.75% as of August 2022, a level at which it remained until August 2023, when the Brazilian Central Bank decided to start loosening monetary policy as inflation began to improve as a result of favorable climatic conditions that lowered the prices of foodstuffs and the delayed effects of the Brazilian Central Bank’s tightening of monetary policy. Accumulated inflation for the year ended December 31, 2023, was 4.6% in Brazil, although it remained above the targeted level of 3.25% set by the CMN. In early 2024, inflation initially followed a downward trend and reached as low as 3.7% in April 2024. However, inflation increased again during 2024 as a result of droughts which disrupted food supplies, increases in energy prices rose, and the depreciation of the real due to both domestic factors, including fiscal challenges, and global factors such as U.S. monetary policy and trade tensions. As a result, inflation reached 4.8% by the end of 2024, above the 3.0% target set by the CMN. In 2025, inflation remained elevated relative to the CMN’s target range, reflecting the combined effects of persistent services inflation, exchange-rate volatility and continued pressures on food and energy prices. Accumulated inflation for the year ended December 31, 2025 was 4.3%, compared to 4.8% in 2024. The majority of our income, expenses, assets and liabilities are directly tied to interest rates. Therefore, our results of operations and financial condition are affected by inflation, interest rate fluctuations and related government monetary policies, all of which may materially and adversely affect the growth of the Brazilian economy, our loan portfolios, our cost of funding and our income from credit operations. We estimate that, in 2025, a 1.0% increase or decrease in the base interest rate would have resulted in a decrease or increase, respectively, in our net interest income of R$369 million within a one-year period. Any changes in interest rates may negatively impact our business, financial condition and results of operations. In addition, increases in base interest rates may adversely affect us by reducing the demand for our credit and investment products, increasing funding costs, and increasing in the short run the risk of default by our customers. Inflation adversely affects our personnel and other administrative expenses that are directly or indirectly tied to inflation indexes, such as the IPCA, and the IGP-M. For example, considering the amounts in 2025, each additional percentage point change in inflation would impact our personnel and other administrative expenses by approximately R$116 million and R$88 million, respectively. Reserve and Lending Requirements The requirements set by the Brazilian Central Bank for reserves and credit has a significant impact on the results of operations of the financial institutions in Brazil. Increases or decreases in such requirements may have an impact on our results of operations by limiting or expanding the amounts available for commercial credit transactions. 153 Table of Contents The table below shows the requirements for reserves and credit to which we are subject for each financing category: Product As of December 31, 2025 As of December 31, 2024 Form of Required Reserve Yield Demand deposits Rural credit loans(1) 31.50 % 31.50 % Loans Cap rate: 14.0% p.a. Microcredit loans(2) 2.00 % 2.00 % Loans Cap rate: 4.0% p.m. Reserve requirements(3) 21.00 % 21.00 % Cash Zero Additional reserve requirements 0.00 % 0.00 % Cash n/a Free funding(4) 45.50 % 45.50 % Savings Accounts Mortgage loans 65.00 % 65.00 % Loans Cap rate (SFH): TR + 12.0% p.a. Reserve requirements(3) 15.00 % 20.00 % Cash TR + 6.17% or TR + 70.00% of the target SELIC Additional reserve requirements 5.00 % 0.00 % Cash TR + 6.17% or TR + 70.00% of the target SELIC Free funding(4) 15.00 % 15.00 % Time deposits Reserve requirements(3) 20.00 % 20.00 % Cash SELIC In cash or other instruments 0.00 % 0.00 % Cash or other instruments n/a In cash 0.00 % 0.00 % Cash n/a Additional reserve requirements 0.00 % 0.00 % Cash n/a Free funding(4) 80.00 % 80.00 % (1) Rural credits are credits granted to farmers in the amount of R$20.3 billion and R$22.3 billion as of December 31, 2025 and 2024, respectively. (2) Microcredit is a credit granted to very small businesses, with an open position of R$3.5 billion and R$3.3 billion as of December 31, 2025 and 2024, respectively. (3) Deductions can be applied on reserve requirements. The Brazilian Central Bank details the possibility of any deduction on its website (Resolutions No. 189/2022, 188/2022 and 145/2021). (4) Interest-free financing is the amount to be used on a free of interest basis for other purposes in each financing category. Taxes See “Item 4. Information on the Company—B. Business Overview—Regulation and Supervision—Other Applicable Laws and Regulation—Taxation.” Goodwill of Banco Real We generated goodwill of R$27 billion as a result of our acquisition of Banco Real in 2008. Under IFRS, we are required to analyze goodwill for impairment at least annually or whenever there are indications of impairment. In 2025, 2024 and 2023, the recoverable goodwill amounts are determined from “value in use” calculations. For this purpose, we estimate cash flow for a period of five years. We prepare cash flow estimates considering several factors, including: (i) macroeconomic projections, such as interest rates, inflation and exchange rates, among others, (ii) the performance and growth estimates of the Brazilian financial system, (iii) increased costs, returns, synergies and investment plans, (iv) the behavior of customers, and (v) the growth rate of, and long-term adjustments to, cash flows. These estimates rely on assumptions regarding the likelihood of future events, and changing certain factors could result in different outcomes. The estimate of cash flows is based on valuations prepared by an independent research company, which is reviewed and approved by the board of directors. Amortization of goodwill for tax purposes generates a permanent difference and, as a result, no record of the deferred tax liability. 154 Table of Contents The following table shows the main assumptions for the basis of valuation as of the dates indicated. As of December 31, 2025 2024 2023 (Value in use: cash flows) Main Assumptions(*) Basis of valuation Period of the projections of cash flows(1) 5 years 5 years 5 years Growth rate(1) 4.0 % 4.5 % 5.4 % Discount rate (2) 12.2 % 13.6 % 13.0 % Discount rate before tax (2) 18.5 % 20.8 % 20.3 % (1) The projections of cash flow are prepared using internal budget and growth plans of management, based on historical data, market expectations and conditions such as industry growth, interest rate and inflation. (2) The discount rate is based on the capital asset pricing model. (*) A quantitative goodwill impairment test is performed annually. At the end of each exercise, an analysis is carried out on the existence of appearances of disability. For the years 2025, 2024 and 2023, there was no evidence of impairment. In the goodwill impairment test, carried out considering the December 2025 scenario, and whose discount rates and perpetuity growth are the most sensitive assumptions for calculating the present value (value in use) of discounted future cash flows, it was found that these continue to indicate the absence of impairment. We performed a sensitivity test in the goodwill impairment analysis considering the main assumptions that could reasonably be expected to possibly change, as required by the IFRS. Accordingly, we applied such a test considering the discount rate and perpetuity growth rate as the main assumption subject to reasonably possible change and we did not identify any impairment to goodwill. Other Factors Affecting the Comparability of Our Results of Operations In addition, our results of operations have been influenced and will continue to be influenced by the other transactions and developments discussed under “Item 4. Information on the Company—A. History and Development of the Company—Important Events.” Critical Accounting Policies Our consolidated financial statements have been prepared in accordance with IFRS as issued by the IASB. General Our main accounting policies are described in note 2 to our audited consolidated financial statements. The following discussion describes areas that require use of certain critical accounting estimates and the exercise of judgement regarding matters that are inherently uncertain and that impact our financial condition and results of operations. In this regard, if management decides to change these estimates, or apply such estimates for different durations a material impact on our financial condition and results of operations could result. Management bases its estimates and judgments on historical experience and on various other factors and circumstances, which are believed to be reasonable. Actual results may differ from these estimates if assumptions and conditions change. Any judgments or changes in assumptions are submitted to the audit committee and to our regulatory authorities and are disclosed in the related notes to our audited consolidated financial statements, included elsewhere in this annual report. 155 Table of Contents Fair Value of Financial Instruments We record a financial asset as measured at (i) fair value through profit or loss, (ii) fair value through other comprehensive income or (iii) amortized cost. In general, financial liabilities are measured at amortized cost. Exceptions include financial liabilities measured at: (i) fair value through profit or loss, (ii) other financial liabilities at fair value through profit or loss and (iii) financial liabilities designated as hedge items (or hedging instruments) measured at fair value. See “Item 3. Key Information—A. Selected Financial Data—Balance Sheet Data.” The fair value of a financial instrument is the price that would be received to sell an asset, or the amount paid to transfer a liability between market participants, in a transaction on the date of which fair value is measured, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, we take into account relevant characteristics if market participants would also consider the same when pricing the asset and liability at the time fair value is measured. An assumed transaction like this establishes an asset sale price or transfer cost for the liability. In the absence thereof, price is established using valuation techniques commonly used by financial markets. We use derivative financial instruments for both trading and nontrading activities. The main types of derivatives used are interest rate swaps, options and future rate agreements; foreign exchange forwards, futures, options, and swaps; cross-currency swaps; equity index futures; and equity options and swaps. The fair value of exchange-traded derivatives is calculated based on published price quotations. The fair value of over-the-counter derivatives is calculated as the sum of expected future cash flows arising from the instrument, discounted to the (“present value” or “theoretical close”) at the date fair value is measured using techniques commonly applied by financial markets as follows: • The present value method is used for financial instruments permitting static hedging (principally, forwards and swaps), loans and advances. This method uses expected future cash flows that are discounted through interest rate curves of the applicable currencies. These interest rate curves are generally observable market data. • The Black-Scholes model is used to value financial instruments requiring dynamic hedging (principally structured options and other structured instruments). Certain observable market inputs are used in the model to generate variables such as the bid-offer spread, exchange rates, volatility, correlation between indexes and market liquidity, as appropriate. • The present value method and the Black-Scholes model are used for valuing financial instruments exposed to interest rate risk, such as interest rate futures, caps and floors. Main inputs used in these models are principally observable market data, including appropriate interest rate curves, volatilities, correlations and exchange rates. • The determination of fair value requires us to make certain estimates and assumptions. If quoted market prices are unavailable, fair value is then calculated using widely accepted pricing models that consider contractual terms and prices of the underlying financial instruments, yield curves, observable market data and other relevant factors. The use of different estimates or assumptions in these pricing models could lead to a different valuation being recorded in our consolidated financial statements. See note 2e (i) to our audited consolidated financial statements included elsewhere in this annual report for additional information on valuation techniques, details on our modeled main assumptions and estimates and a sensitivity analysis for the valuation of financial instruments to those changes in main assumptions and estimates and note 46.c.8 of our consolidated financial statements for a sensitivity analysis relating to the valuation of financial instruments to those changes in main assumptions. Impairment Losses on Financial Assets Definition A financial asset is considered impaired when there is objective evidence that shows events have occurred which: • give rise to an adverse impact on future cash flows estimated at the transaction date, in the case of debt instruments (loans and debt securities); • for equity instruments, their carrying amount may not be fully recovered; • arise from the violation of terms of loans; and 156 Table of Contents • during the bankruptcy process. As a general rule, the value adjustment of impaired financial instruments is recognized in the consolidated income statement for the period in which the impairment becomes evident. The reversal, if any, is recognized in the same manner for previous statements for which the impairment is reversed or reduced. Financial assets are deemed to be impaired, and the accrued interest suspended, when there are reasonable doubts as to their full recovery and/or the collection of the related interest for the amounts and on the dates indicated in the loan agreement after taking into account collateral guarantees received to secure (fully or partially) the collection of related balances. For all nonperforming past due assets, any collections relating to impaired loans and advances are used to recognize the accrued interest. The remainder, if any, is applied to reduce the principal amount outstanding Debt Instruments Carried at Amortized Cost. Debt Instruments Carried at Amortized Cost The impairment loss amount incurred for determining a recoverable amount on a debt instrument measured at amortized cost is equal to the difference between its carrying amount and the present value of its estimated future cash flows (excluding future credit losses not incurred). This cash flow is discounted to the financial asset’s original effective interest rate (or the effective interest rate at initial recognition), which is presented as a reduction of the asset balance and recorded on income statements. In estimating the future cash flows of debt instruments, the following factors are taken into account: • all amounts that are expected to be obtained over the remaining life of the instrument, (such as provided guarantees); • impairment loss considers the likelihood of collecting accrued interest receivable; • various types of risk to which each instrument is subject; • circumstances in which collections will foreseeably be made; and • that cash flows are subsequently discounted using the instrument’s effective interest rate. A debt instrument is impaired due to insolvency when there is evidence of deterioration in the obligor’s ability to pay, either because such obligor is in arrears or for other reasons. An example is recoverable losses resulting from a materialization of the insolvency risk of obligors (credit risk). We have certain policies, methods and procedures for minimizing our exposure to counterparty insolvency. These policies, methods and procedures are applied in the granting, examination and documentation of debt instruments, contingent liabilities and commitments; identification of recoverable amounts and calculation of amounts necessary to cover the related credit risk. The procedures employed in the identification, measurement, control and reduction of exposure to credit risk, are applied on an individual basis or through grouping similar credit risk characteristics. Customers with individual management include wholesale segment customers, financial institutions and certain companies. Risk management is performed through an analysis complemented by tools to support a decision-making model based on credit risk assessment using internal procedure. Customers with standardized management include individuals and companies not classified as individual customers. Risk management models are based on automated decision-making and risk assessment procedures, which are complemented by teams of analysts specializing in credit risk. The credits related to standardized customers are usually considered to be not recoverable when they have experience of historical loss and a delay greater than 90 days. Methodology for Impairment Losses We evaluate all loans in respect of the provision for impairment losses from credit risk. Loans are either individually evaluated for impairment or collectively evaluated by grouping similar risk characteristics for loans accounted as amortized cost. Loans that are individually evaluated for impairment losses are not evaluated collectively. 157 Table of Contents To measure the impairment loss on loans individually evaluated for impairment, we consider borrower conditions, such as their economic and financial situation; level of indebtedness; ability to generate income; cash flow; management; corporate governance and quality of internal controls; payment history; industry expertise; and contingencies and credit limits. The characteristics of assets are also considered, which include: the nature and purpose; type; sufficiency and liquidity level guarantees; total amount of credit; historical experience of impairment; and other circumstances known at the time of evaluation. To measure the impairment loss on loans collectively evaluated for impairment, we segregate financial assets into groups considering the characteristics and similarity to credit risk, or in other words, according to segment, the type of assets, guarantees and other factors associated such as the historical experience of impairment and other circumstances known at the time of assessment. Impairment loss is calculated using statistical models that consider the following factors: • Exposure at Default or “EAD,” is the amount of risk exposure at the date of default by the counterparty. In accordance with IFRS, the exposure at default used for this calculation is also the current exposure, as reported in the balance sheets. • Probability of Default or “PD,” is the probability of the borrower failing to meet its principal and/or interest payment obligations, PD is measured using an annual time horizon to quantify the probability of the borrower defaulting in the coming year. A loan is in default if either the principal or interest is past due by ninety days or more or the loan is current but there are doubts as to the solvency of the counterparty (subjective doubtful assets). • Loss Given Default, or “LGD,” is the loss arising in the event of default, LGD calculation is based on the net charge offs on defaulted loans, taking into account the guarantees/collateral associated with the loans, the income and expenses associated with the recovery process and the timing of default. • Loss Identification Period, or “LIP,” is the time period between the occurrence of a loss event and the identification of an objective evidence of this loss. In other words, it represents the time horizon from the credit loss occurrence until the effective confirmation of such loss. Moreover, prior to loans be written-off (which is only done after the Bank has completed all recovery efforts and after about 360 days late), a fully registered provision (allowance for loan losses) of the loan’s remaining balance applies. As a result, this provision fully covers the losses. Thus, the Bank understands that its loan loss allowance methodology has been developed to meet its risk metrics and capture loans that could potentially become impaired. Impairment Certain assets, such as intangible assets, including goodwill, equity method investments, financial assets not carried at fair value through profit or loss and other assets are subject to impairment review. We record impairment charges when we believe there is objective evidence of impairment, or that the cost of the assets may not be recoverable. The assessment of what constitutes an impairment is based on the following models: We test goodwill for impairment on an annual basis, or more frequently if events or changes in economic circumstances, such as an adverse change in Santander Brasil’s business condition or observable market data, indicate that these assets may be impaired. The recoverable amount determination used in the impairment assessment requires prices of comparable businesses, present value or other valuation techniques, or a combination thereof, requiring management to make subjective judgments and assumptions. Events and factors that may significantly affect estimates include, among other things, competitive forces, customer behaviors and attrition, changes in revenue growth trends, cost structures and technology, and changes in discount rates and specific industry or market sector conditions. If an impairment loss is recognized for goodwill, it may not be reversed in a subsequent period. The recognition of impairment is applicable when significant changes occur in the main estimates used to evaluate the recoverable amounts of the cash-generating unit recoverable amount below the carrying amount. Based on the assumptions described above, no impairment of goodwill was identified in 2025, 2024 and 2023. Given the level of uncertainty related to these assumptions, our officers carry out a sensitivity analysis using reasonably possible changes in the key assumptions on which the recoverable amount of the cash-generating units are based in order to confirm that the recoverable amounts still exceed the carrying amounts. 158 Table of Contents All debt and equity securities (other than those carried at fair value through profit or loss) are subject to impairment testing every reporting period. The carrying value is reviewed in order to determine whether an impairment loss has been incurred. Evaluation for impairment includes both quantitative and qualitative information. For debt securities, such information includes actual and estimated incurred credit losses indicated by payment default, market data on (estimated) incurred losses and other current evidence that the issuer may not pay amounts when due. Equity securities are impaired when management believes that, based on a significant or prolonged decline of fair value below the acquisition price, there is sufficient reason to believe that the acquisition cost may not be recovered, “Significant” and “prolonged” are interpreted on a case-by-case basis for specific equity securities. Upon the impairment of either debt or equity instruments, the amount considered as effective loss is recognized in profit or loss. In addition, we did not identify any impairment of property, plant and equipment in 2025, 2024 and 2023 (see notes 14, 13 and 12, respectively, to our audited consolidated financial statements included elsewhere in this annual report). Post-employment Benefit Plan The post-employment benefit plan includes the following obligations undertaken by us: (i) to supplement the public social security system benefits, and (ii) medical assistance in the event of retirement, permanent disability or death for eligible employees and their direct beneficiaries. Defined Contribution Plan A defined contribution plan is the post-employment benefit plan for which we and our controlled entities as employers make pre-determined contributions to a separate entity and, in turn, have no legal or constructive obligation to pay further contributions if the separate entity does not hold sufficient assets to honor all benefits relating to the services rendered in the current and prior periods. These contributions are recognized as personnel expenses in the consolidated income statement. Defined Benefit Plan A defined benefit plan is the post-employment benefit plan as is shown in note 21 to our audited consolidated financial statements. For this type of plan, the sponsoring entity’s obligation is to provide the agreed benefits to employees, assuming the potential actuarial risk that benefits will cost more than expected. The amendment of IAS 19 established fundamental changes in the accounting for and disclosure of employee post-employment benefits such as removing the mechanism of the corridor approach for recording of the obligation of the plans. Fundamental changes also include changes in the criteria for recognition of conventional interest of plan assets (valuation based on the discount rate actuarial liability). The adoption of this accounting policy involved, fundamentally, full recognition of liabilities on account of actuarial losses (actuarial deficit) not recognized previously, against the stockholders’ equity (Statements of Comprehensive Income). Main Definitions: • The present value of the defined benefit obligation is the present value of expected future payments required to settle the obligation resulting from employee service in the current and past periods, without deducting any plan assets. • Deficit or surplus is: (a) the present value of the defined benefit obligation, less (b) the fair value of plan assets. • The sponsoring entity may recognize the plan’s assets in the balance sheet when they meet the following characteristics: (i) the assets of the fund are sufficient to meet all employee benefit plan or sponsor obligations; or (ii) the assets are returned to the sponsoring entity in order to reimburse it for employee benefits already paid. • Actuarial gains and losses are changes in present value of defined benefit obligation resulting from: (a) adjustments due to experience (the effects of differences between the actuarial assumptions adopted and what has actually occurred); and (b) effects of changes in actuarial assumptions. 159 Table of Contents • Current service cost is the increase in the present value of the defined benefit obligation resulting from employee service in the current period. • The past service cost is the change in present value of defined benefit obligation for employee service in prior periods resulting from a change in the plan or reductions in the number of employees covered. Post-employment benefits are recognized in the income statement within “Interest expense and similar charges” and “Provisions (net).” The defined benefit plans are recorded based on an actuarial study, and conducted by an external consultant, at the end of each year to therein be effective for the subsequent period. New Accounting Standards The new IFRS standards effective after January 1, 2025 are mentioned in our audited consolidated financial statements included in this annual report. For further information, see note 1 to our audited consolidated financial statements included elsewhere in this annual report. All accounting policies and measurement bases with a material effect on the consolidated financial statements for 2025 were applied in the preparation of such financial statements. Results of Operations for the Years Ended December 31, 2025, 2024 and 2023 Executive Summary – Santander Brasil Results at a Glance Total Income amounted to R$74,997 million in 2025, an increase of 1.7%, or R$1,239 million, in comparison with the year ended December 31, 2024, driven by an increase in net interest income and fee commissions. Consolidated Net Income totaled R$12,965 million in the year ended December 31, 2025, a decrease of 3.3% compared to the year ended December 31, 2024, mainly due to (i) an increase in other nonfinancial gains impacted by the joint venture transaction with the Pluxee Group in 2024; (ii) an increase in impairment losses on financial assets due to systematic increase in family indebtedness and system delinquency driven by a higher interest rate, and (iii) an increase in provisions, driven by higher labor contingencies. Loan Portfolio to customers amounted to R$602,040 million as of December 31, 2025, an increase of 0.4% compared to December 31, 2024, mainly due to an increase in our loan portfolio for consumer finance, SMEs (especially working capital) and individuals (especially credit cards and mortgages). Credit risk exposure amounted to R$778.9 billion as of December 31, 2025, an increase of 3.8% compared to December 31, 2024. Credit Quality: the impaired assets to credit risk exposure ratio was 6.3% for the year ended December 31, 2025, a 0.6 percentage points increase compared to the previous year. Coverage ratio was 83.2% in the year ended December 31, 2025, a 1.2 percentage points decrease compared to the year ended December 31, 2024. Our Basel Capital adequacy ratio was 15.4% in the year ended December 31, 2025, an increase of 1.1 percentage points compared to the year ended December 31, 2024. Deposits from customers and from the Brazilian Central Bank decreased by 3.1% reaching R$740 billion in 2025, mainly due to lower customer demand deposits especially in current accounts, reflecting a shift toward higher-yielding term instruments, both in Wholesale and Retail. Time deposits increased during the period, partially offsetting the reduction in demand balances. Deposits from credit institutions also decreased, mainly due to lower interbank time deposits and repurchase operations. 160 Table of Contents Results of Operations The following table presents our consolidated results of operations for the years ended December 31, 2025, 2024 and 2023: For the Year Ended December 31, 2025 2024 2023 % Change 2025/2024 % Change 2024/2023 (in millions of R$, except percentages) Net interest income 57,634 56,679 46,884 1.7 20.9 Income from equity instruments 86 84 22 2.2 277.1 Income from companies accounted for by the equity method 458 313 239 46.4 30.8 Net fee and commission income (expense) 17,495 17,205 15,640 1.7 10.0 Gains (losses) on financial assets and liabilities (net) and exchange differences (net) 131 129 3,795 1.8 (96.6) Other operating income (expenses) net (808) (652) (716) 24.0 (8.9) Total income 74,997 73,757 65,864 1.7 12.0 Administrative expenses (20,938) (20,417) (19,563) 2.6 4.4 Depreciation and amortization (2,626) (2,731) (2,741) (3.9) (0.4) Provisions (net) (4,979) (4,595) (4,424) 8.3 3.9 Impairment losses on financial assets (net) (29,540) (28,484) (28,008) 3.7 1.7 Impairment losses on other assets (net) (397) (252) (250) 57.2 0.9 Other nonfinancial gains (losses) 212 1,912 1,044 (88.9) 83.2 Operating income before tax 16,729 19,190 11,922 (12.8) 61.0 Income tax (3,764) (5,776) (2,423) (34.8) 138.4 Consolidated net income for the year 12,965 13,414 9,499 (3.3) 41.2 Consolidated Net Income for the Year Our consolidated net income for the year ended December 31, 2025, was R$12,965 million, a decrease of R$449 million, or 3.3%, as compared to our consolidated net income of R$13,414 million for the year ended December 31, 2024, primarily due to (i) a decrease in other nonfinancial gains of R$1,700 million, or 88.9%, impacted by the joint venture transaction with the Pluxee Group in 2024; (ii) an increase in impairment losses on financial assets of R$1,056 million, or 3.7% due to systematic increase in family indebtedness and system delinquency driven by a higher interest rate, and (iii) an increase in provisions of R$ 384 million, or 8.3%, driven by higher labor contingencies. Our consolidated net income for the year ended December 31, 2024, was R$13,414 million, an increase of R$3,915 million, or 41.2%, as compared to our consolidated net income of R$9,499 million for the year ended December 31, 2023, primarily due to (i) an increase in net interest income of R$9,795 million, or 20.9%, to R$56,679 million in the year ended December 31, 2024 from R$46,884 million in the year ended December 31, 2023, driven by the increase in net interest income in credit operations and better performance in market operations, despite the volatile macroeconomic environment; (ii) an increase in net fee income of R$1,565 million, or 10.0%, to R$17,205 million in the year ended December 31, 2024 from R$15,640 million in the year ended December 31, 2023, driven by the higher results in capitalization, insurance and cash management. 161 Table of Contents Net Interest Income Net interest income for the year ended December 31, 2025, was R$57,634 million, an increase of R$956 million, or 1.7%, from R$56,679 million for the year ended December 31, 2024. This increase was mainly due to an increase in income from: (i) deposit products, especially time deposits and demand deposits in our individuals and SMEs businesses, and (ii) credit products, especially in our SMEs and consumer finance business, in each case driven by growth in volume in products such working capital, auto loans and mortgages. This was partially offset by the negative sensitivity to the increase of interest rates. Average total earning assets in 2025 were R$1,110,376 million, an increase of 4.4% from R$1,063,823 million in 2024. The main driver of this change was an increase in the average amount of loans and advances to customers and loans and amounts due from credit institutions. Net interest margin (net interest income divided by average earning assets) in 2025 was 5.2% compared to 5.3% in 2024, impacted by higher share of new businesses in collateralized products and focus on portfolios and segments with a lower credit risk, reflecting our strategy of seeking to increase net profitability. Average total interest-bearing liabilities in 2025 were R$888,931 million, an increase of 4.7%, from R$849,299 million in 2024. Finally, the net interest spread (the difference between interest on earning assets and the average cost of interest-bearing liabilities) was 2.7% in 2025, mainly due to a shift in our credit portfolio mix toward customers with a better risk profile, partially offset by a lower cost of funding in deposits. Net interest income for the year ended December 31, 2024 was R$56,679 million, a 20.9% or R$9,795 million increase from R$46,884 million for the year ended December 31, 2023. This increase was mainly due to an increase in income from: (i) credit products, especially in our individuals and consumer finance businesses, driven by growth in volume in products such as cards, payroll, auto loan and mortgage, and (ii) better performance in market operations. This was partially offset by lower interest spreads, attributable to a shift in our portfolio mix toward customers with a better risk profile and focus on collateralized products. Average total earning assets in 2024 were R$1,063,823 million, a 10.8% increase from R$959,769 million in 2023. The main driver of this change was an increase in the average amount of loans and advances to customers and financial assets measured at fair value (i.e., debt and equity instruments). Net interest margin (net interest income divided by average earning assets) in 2024 was 5.3% compared to 4.9% in 2023, supported by the increase in the SELIC rate and a better credit products mix, following our strategy of increasing the share of individual segments. Average total interest-bearing liabilities in 2024 were R$849,299 million, a 11.9% or R$90,386 million increase from R$758,913 million in 2023. Finally, the net interest spread (the difference between interest on earning assets and the average cost of interest-bearing liabilities) was 3.3% in 2024, mainly due to a shift in our portfolio mix towards customers with a better risk profile. Income from equity instruments Income from equity instruments for the year ended December 31, 2025 totaled R$86 million, an increase of R$2 million from R$84 million for the year ended December 31, 2024. Income from equity instruments for the year ended December 31, 2024 totaled R$84 million, a R$61 million increase from R$22 million for the year ended December 31, 2023. Income from Companies Accounted for by the Equity Method Income from companies accounted for by the equity method for the year ended December 31, 2025 was R$458 million, an increase of R$145 million from R$313 million for the year ended December 31, 2024, mainly due to an increase of R$58 million in the results of Pluxee, R$42 million in the results of Banco RCI and R$28 million in the results of Webmotors. 162 Table of Contents Income from companies accounted for by the equity method for the year ended December 31, 2024 was R$313 million, a R$74 million increase from R$239 million for the year ended December 31, 2023, mainly due to an increase of R$53 million in the results of Pluxee (which we acquired in 2024) and R$29 million in the results of Banco RCI. Net fee and commission income Net fee and commission income for the year ended December 31, 2025 was R$17,495 million, an increase of R$290 million, or 1.7%, compared to R$17,205 million for the year ended December 31, 2024. This increase was primarily driven by: (i) insurance and capitalization, supported by improved loan performance, particularly in consumer, and launch of new products; (ii) credit and debit cards, reflecting growth in transaction volumes and customer spending; and (iii) asset management and pension funds due to higher volumes of assets under management and of pension funds. Net fees and commissions from credit and debit cards totaled R$4,508 million for the year ended December 31, 2025, an increase of 2.1% compared to the year ended December 31, 2024. This was primarily due to growth in transaction volumes and customer spending. Net fees and commissions from asset management and pension funds totaled R$2,271 million for the year ended December 31, 2025, an increase of 3.3% compared to the year ended December 31, 2024. This was primarily due to higher volumes. Net fees and commissions from insurance and capitalization totaled R$4,973 million for the year ended December 31, 2025, an increase of 4.9% compared to the year ended December 31, 2024. This was primarily due to improved loan performance and launch of new products. Net fee and commission income for the year ended December 31, 2024 was R$17,205 million, a 10.0% or R$1,565 million increase compared to R$15,640 million for the year ended December 31, 2023. This increase was primarily attributable to: (i) credit and debit cards, mainly due to increases in our customer base, number of transactions and customer spending, (ii) insurance and capitalization, reflecting the improved performance in loans (especially in consumer), and (iii) asset management and pension funds. Net fees and commissions from asset management and pension funds totaled R$2,199 million for the year ended December 31, 2024, an increase of 10.5% compared to the year ended December 31, 2023. Net fees and commissions from insurance and capitalization totaled R$4,741 million for the year ended December 31, 2024, an increase of 10.2% compared to the year ended December 31, 2023. Net fees and commissions from credit and debit cards totaled R$4,414 million for the year ended December 31, 2024, an increase of 24.2% compared to the year ended December 31, 2023. The following table reflects the breakdown of net fee and commission income for the years ended December 31, 2025, 2024 and 2023: For the Year Ended December 31 2025 2024 2023 % Change 2025/2024 % Change 2024/2023 (in millions of R$, except percentages) Current account services 3,169 3,314 3,255 (4.4) 1.8 Collection and payment services 1,803 1,738 1,801 3.7 (3.5) Insurance and capitalization 4,973 4,741 4,303 4.9 10.2 Asset Management and pension funds 2,271 2,199 1,990 3.3 10.5 Credit and debit cards 4,508 4,414 3,554 2.1 24.2 Capital markets 1,147 1,178 1,183 (2.6) (0.4) Trade finance 1,936 1,858 1,926 4.2 (3.5) Tax on services (806) (855) (758) (5.7) 12.8 Others (1,506) (1,382) (1,613) 9.0 (14.3) Total 17,495 17,205 15,641 1.7 10.0 163 Table of Contents Gains (losses) on financial assets and liabilities (net) and exchange differences Gains on financial assets and liabilities (net) and exchange differences (net) for the year ended December 31, 2025 amounted to R$131 million, an increase of R$2 million compared to a gain of R$129 million for the year ended December 31, 2024. This variation is mainly due to financial assets measured at fair value through profit or loss, a R$641 million loss as of December 31, 2024 compared to a gain of R$7,890 million as of December 31, 2025. Gains on financial assets and liabilities (net) and exchange differences (net) for the year ended December 31, 2024 amounted to R$129 million, a decrease of R$3,666 million compared to a gain of R$3,795 million for the year ended December 31, 2023. This variation is mainly due to lower gains with financial assets measured at fair value through profit or loss, of R$3,441 million as of December 31, 2023 compared to a loss of R$641 million as of December 31, 2024. For further information, see notes 36 and 37 to our audited consolidated financial statements included elsewhere in this annual report. Other Operating Income/Expenses Other operating expenses for the year ended December 31, 2025, amounted to R$808 million, an increase of R$156 million compared to expenses of R$652 million for the year ended December 31, 2024, mainly due to higher operating expenses related to the growth of business activity and deposits portfolio. Other operating expenses for the year ended December 31, 2024 amounted to R$652 million, a decrease of R$64 million compared to expenses of R$716 million for the year ended December 31, 2023, mainly due to lower operational expenses. Administrative Expenses Administrative expenses for the year ended December 31, 2025 were R$20,938 million, an increase of R$522 million compared to expenses of R$20,417 million for the year ended December 31, 2024, mainly due to the increase in expenses with wages and salaries and related technology and systems and per diem expenses and travel expenses as a result of the increase in inflation in the period and the growth of our business. Administrative expenses for the year ended December 31, 2024 were R$20,417 million, a R$854 million increase compared to expenses of R$19,563 million for the year ended December 31, 2023, mainly due to the increase in expenses with wages and salaries and related technology and systems, per diem expenses and travel expenses, and other administrative expenses as a result of the increase in inflation in the period and the growth of our business. Personnel expenses increased by R$101 million for the year ended December 31, 2025, mainly due to higher employee wages and salaries deriving from our collective bargaining with employees in 2024, which impacted the first eight months of 2025, and our 2025 collective bargaining agreement, which impacted the final four months of the year. Personnel expenses increased by R$784 million for the year ended December 31, 2024, mainly due to higher employee wages and salaries deriving from our collective bargaining with employees in 2023, which impacted the first eight months of 2024, and our 2024 collective bargaining agreement, which impacted the final four months of the year. 164 Table of Contents The following table sets forth our personnel expenses for each of the periods indicated: For the Year Ended December 31, 2025 2024 2023 % Change 2025/2024 % Change 2024/2023 (in millions of R$, except percentages) Wages and salaries 7,242 7,087 6,640 2.2 6.7 Social security costs 1,713 1,692 1,654 1.2 2.3 Benefits 1,771 1,753 1,659 1.0 5.7 Training 67 68 62 (2.1) 10.3 Other personnel expenses 907 997 799 (9.0) 24.8 Total 11,699 11,598 10,814 0.9 7.3 Other administrative expenses increased by R$420 million to R$9,239 million for the year ended December 31, 2025, from R$8,819 million for the year ended December 31, 2024, mainly as a result of greater expenses with technology and systems and per diem expenses and travel expenses as a result of the increase in inflation in the period and the growth of our business. Other administrative expenses increased R$70 million to R$8,819 million for the year ended December 31, 2024, from R$8,749 million for the year ended December 31, 2023, mainly as a result of greater expenses with technology and systems, per diem expenses and travel expenses and other administrative expenses,as a result of the increase in inflation in the period and the growth of our business. The following table sets forth our other administrative expenses for each of the periods indicated: For the Year Ended December 31, 2025 2024 2023 % Change 2025/2024 % Change 2024/2023 (in millions of R$, except percentages) Specialized and technical services 2,486 2,414 2,397 3.0 0.7 General maintenance expenses 818 878 896 (6.8) (2.0) Technology and systems 3,015 2,410 2,384 25.1 1.1 Advertising 483 516 522 (6.5) (1.1) Communications 282 351 502 (19.6) (30.0) Per diems and travel expenses 215 201 163 6.8 23.4 Taxes other than income tax 142 154 173 (8.0) (11.0) Surveillance and cash courier services 384 474 525 (19.1) (9.6) Insurance premiums 26 25 27 3.7 (5.5) Other administrative expenses 1,388 1,394 1,160 (0.5) 20.2 Total 9,239 8,819 8,749 4.8 0.8 The efficiency ratio, which we calculate as total administrative expenses divided by total income, increased to 27.9% in the year ended December 31, 2025, as compared to 27.7% for the year ended December 31, 2024. This increase of 0.2 percentage points in the ratio is primarily due to the growth of our costs outpacing the growth of our margin. The efficiency ratio decreased to 27.7% in the year ended December 31, 2024, as compared to 29.7% for the year ended December 31, 2023. This decrease of 2.0 percentage points in the ratio is primarily due to higher growth in net income (driven by net interest income and net fee income) and an increase in costs driven by inflation. 165 Table of Contents Depreciation and Amortization Depreciation and amortization for the year ended December 31, 2025 was R$2,626 million, a decrease of R$105 million, or 3.9%, from R$2,731 million for the year ended December 31, 2024, primarily due to impact on hardware due to the end of amortization and changes in the extended useful life of some items. Depreciation and amortization for the year ended December 31, 2024 was R$2,731 million, a 0.4% or R$10 million decrease from R$2,741 million for the year ended December 31, 2023, primarily due to higher expenses with amortization of software items, resulting from investments made in this period. Provisions (Net) Provisions principally include provisions for tax, civil, and especially labor claims. Provisions (net) totaled R$4,979 million for the year ended December 31, 2025, an increase of R$383 million, or 8.3%, compared to R$4,595 million for the year ended December 31, 2024, mainly due to an increase in labor contingencies. Provisions principally include provisions for tax, civil, and especially labor claims. Provisions (net) totaled R$4,595 million for the year ended December 31, 2024, a 3.9% or R$171 million increase compared to R$4,424 million for the year ended December 31, 2023, mainly due to an increase in labor and civil contingencies. Impairment Losses on Financial Assets (Net) Impairment losses on financial assets (net) for the year ended December 31, 2025 were R$29,540 million, an increase of R$1,056 million compared to R$28,484 million for the year ended December 31, 2024. This increase reflects continued growth of our loan portfolio—particularly in SMEs, Auto Finance and Real Estate—combined with a disciplined and forward-looking approach to risk management, including prudent reserve strengthening among Individuals, especially in lower-income segments, and within Corporate & SMEs, primarily smaller companies. Impairment losses on financial assets (net) for the year ended December 31, 2024 were R$28,484 million, an R$476 million increase compared to R$28,008 million for the year ended December 31, 2023, which was primarily due to growth in our retail portfolio, and the effects of challenging macroeconomic conditions on our SME portfolio. Our credit risk exposure increased by R$28.5 billion to R$778.9 billion as of December 31, 2025, compared to R$750.4 billion as of December 31, 2024. Furthermore, our impaired assets increased by R$6.7 billion from R$42.2 billion as of December 31, 2024 to R$48.9 billion as of December 31, 2025. Our credit risk exposure increased by R$30.5 billion to R$750.4 billion as of December 31, 2024 compared to R$719.9 billion as of December 31, 2023. Furthermore, our impaired assets increased R$2.4 billion from R$39.9 billion as of December 31, 2023 to R$42.2 billion for the year ended December 31, 2024. See also “Item 4. Information on the Company—B. Business Overview—Selected Statistical Information—Allowance for Loan Losses—Impaired Asset Ratios” for a table showing our ratio of impaired assets to total credit risk exposure and our coverage ratio as of December 31, 2025, 2024 and 2023. Impaired Assets by Type of Loan The following table shows our impaired assets by type of loan as of December 31, 2025, 2024 and 2023. For the Year Ended December 31, 2025 2024 2023 % Change 2025/2024 % Change 2024/2023 (in millions of R$, except percentages) Commercial and industrial 17,291 13,175 16,292 31.2 (19.1) Real estate 1,809 1,736 1,352 4.2 28.4 Installment loans to individuals 29,779 27,284 22,239 9.1 22.7 Lease financing 21 47 4 (56.2) 1191.4 Total 48,900 42,242 39,887 15.8 5.9 For a discussion of the evolution in impairment in our lending portfolios and our methodology for loan loss allowances with respect to the following lending portfolios, see “Item 4. Information on the Company—B. Business Overview—Selected Statistical Information—Allowance for Loan Losses—Methodology for Impairment Losses.” See also “Item 3. Key Information—D. Risk Factors—Risks Relating to Brazil and Macroeconomic and Political Conditions in Brazil and Globally—The financial problems faced by our customers could adversely affect us.” 166 Table of Contents Commercial and Industrial Impaired assets in the commercial and industrial loans portfolio amounted to R$17,291 million as of December 31, 2025, an increase of R$4,116 million, or 31.2%, compared to R$13,175 million as of December 31, 2024. This increase reflects continued growth in the SMEs portfolio, combined with a more challenging credit environment—driven by higher-for-longer interest rates—affecting Corporate & SMEs, primarily smaller companies. Impaired assets in the commercial and industrial loans portfolio amounted to R$13,175 million as of December 31, 2024, a decrease of R$3,117 million, or 19.1%, compared to R$16,292 million as of December 31, 2023. This decrease was mainly due to the restructuring of the indebtedness of a large customer in our wholesale segment. For further information, please see “Item 4. Information on the Company—B. Business Overview—Selected Statistical Information—Allowance for Loan Losses—Methodology for Impairment Losses.” Real Estate Impaired assets in the real estate lending portfolio totaled R$1,809 million as of December 31, 2025, an increase of R$73 million, or 4.2%, compared to R$1,736 million as of December 31, 2024. This was primarily due to a higher growth in this portfolio. Impaired assets in the real estate lending portfolio totaled R$1,736 million on December 31, 2024, an increase of R$384 million, or 28.4%, compared to R$1,352 million as of December 31, 2023. This increase was primarily due to the growth of this portfolio and challenging macroeconomic conditions. For further information, please see “Item 4. Information on the Company—B. Business Overview—Selected Statistical Information—Allowance for Loan Losses—Methodology for Impairment Losses.” Installment Loans to Individuals Impaired assets in the installment loans to individuals lending portfolio totaled R$29,779 million as of December 31, 2025, an increase of R$2,495 million, or 9.1%, compared to R$27,284 million as of December 31, 2024. This increase reflects continued growth in the Auto Finance and Real Estate portfolios, combined with a more challenging credit environment affecting Individuals—particularly in lower-income segments. Impaired assets in the installment loans to individuals lending portfolio totaled R$27,284 million as of December 31, 2024, with an increase of R$5,045 million, or 22.7% compared to R$22,239 million as of December 31, 2023. This increase was primarily due to the high growth of this portfolio, changes in the methodology used to determine whether a loan is non-performing and challenging macroeconomic conditions affecting certain products such as rural. For further information, please see “Item 4. Information on the Company—B. Business Overview—Selected Statistical Information—Short-Term Borrowings—Impaired Assets—Methodology for Impairment Losses.” Lease Financing Impaired assets in the lease financing lending portfolio totaled R$21 million as of December 31, 2025, a decrease of R$26 million compared to R$47 million as of December 31, 2024. Impaired assets in the lease financing lending portfolio totaled R$47 million on December 31, 2024, an increase of R$43 million compared to R$4 million as of December 31, 2023. This increase in impaired assets was primarily concentrated in two specific clients. For further information, please see “Item 4. Information on the Company—B. Business Overview—Selected Statistical Information—Short-Term Borrowings—Impaired Assets—Methodology for Impairment Losses.” 167 Table of Contents Impairment Losses on Other Assets (Net) Impairment losses on other assets (net) for the year ended December 31, 2025, amounted to losses of R$397 million, an increase of R$144 million as compared to R$252 million for the year ended December 31, 2024, mainly due to a footprint efficiency plan involving the closing of branches. Impairment losses on other assets (net) for the year ended December 31, 2024, amounted to losses of R$252 million, an increase of R$2 million as compared to R$250 million for the year ended December 31, 2023. Other Nonfinancial Gains Other nonfinancial gains amounted to R$212 million during the year ended December 31, 2025, a decrease of R$1,700 million compared to R$1,912 million during the year ended December 31, 2024, mainly due to the one-off effect of the joint venture transaction with the Pluxee Group which occurred in 2024. Other nonfinancial gains amounted to R$1,912 million during the year ended December 31, 2024, an increase of R$869 million compared to R$1,044 million during the year ended December 31, 2023, mainly due to the closing of the joint venture transaction with the Pluxee Group. Operating Income Before Tax Operating income before tax for the year ended December 31, 2025 was R$16,729 million, a decrease of R$2,461 million, or 12.8%, as compared to R$19,190 million for the year ended December 31, 2024. This was primarily due to the 2024 joint venture transaction with the Pluxee Group, higher impairment losses on financial assets reflecting a systematic increase in family indebtedness and delinquency levels, and increased provisions attributable to elevated labor contingencies. Income Taxes Income taxes expenses include income tax, social contribution, PIS and COFINS (which are social contributions due on certain income net of certain expenses). Total income taxes amounted to R$3,764 million in the year ended December 31, 2025, a decrease of R$2,013 million, or 34.8%, in relation to R$5,776 million in the year ended December 31, 2024. This decrease in expense was mainly attributed to a decrease in operating income before tax to R$16,729 million in the year ended December 31, 2025, compared to R$19,190 million in the year ended December 31, 2024, primarily due to economic factors that directly impacted the increase in losses related to credit operations (IFRS 9). The lower earnings resulted in a smaller taxable base, leading to a proportional reduction in tax expense. Another event explaining the reduction in the income tax line relates to the increase in interest on equity to R$3,376 million in the year ended December 31, 2025, compared to R$2,589 million in the year ended December 31, 2024. Additionally, the effects of specific events recognized directly in the tax line remained stable compared to the prior year, with no material additional impacts on the variation in tax expense. Total income taxes amounted to R$5,776 million in the year ended December 31, 2024, an increase of 138.4%, or R$3,354 million, in relation to R$2,423 million in the year ended December 31, 2023. This expense increase was mainly attributed to an increase in operating income before tax to R$19,190 million in the year ended December 31, 2024, from R$11,922 million in the year ended December 31, 2023, which was primarily due to our operational performance throughout the year. The higher earnings resulted in a larger taxable base, leading to a proportional increase in tax expense. Additionally, the effects of specific events recognized directly in the tax line remained stable compared to the prior year, with no material additional impacts on the variation in tax expense. Results of Operations by Segment for the Years Ended December 31, 2025, 2024 and 2023 The following tables show our results of operations for the years ended December 31, 2025, 2024 and 2023, for each of our operating segments. 168 Table of Contents Commercial Banking For the Year Ended December 31, 2025 2024 2023 % Change 2025/2024 % Change 2024/2023 (in millions of R$, except percentages) Net interest income 53,126 51,563 44,652 3.0 15.5 Income from equity instruments 8 5 4 48.3 45.4 Income from companies accounted for by the equity method 374 259 185 44.2 40.3 Net fee and commission income 15,397 14,944 13,270 3.0 12.6 Gains/losses on financial assets and liabilities (net) and exchange differences (net) (4,206) (1,488) (1,125) 182.8 32.2 Other operating income (expenses) (704) (480) (596) 46.6 (19.5) Total income 63,994 64,804 56,389 (1.2) 14.9 Personnel expenses (10,569) (10,534) (9,754) 0.3 8.0 Other administrative expenses (8,208) (7,836) (7,867) 4.8 (0.4) Administrative expenses (18,777) (18,370) (17,621) 2.2 4.3 Depreciation and amortization (2,467) (2,599) (2,621) (5.1) (0.8) Provisions (net) (4,894) (4,583) (4,404) 6.8 4.0 Impairment losses on financial assets (net) (28,818) (28,451) (26,583) 1.3 7.0 Impairment losses on other assets (net) (313) (253) (250) 23.8 1.0 Other nonfinancial gain (losses) 212 1,912 1,044 (88.9) 83.2 Operating income before tax 8,938 12,461 5,953 (28.3) 109.3 2025 and 2024 Operating income before tax attributed to the Commercial Banking segment for the year ended December 31, 2025, was R$8,938 million, a decrease of R$3,523 million from R$12,461 million for the year ended December 31, 2024. This variation was mainly due to: • an increase of R$2.7 billion in losses on financial assets and liabilities and exchange differences representing a 182.8% increase compared to the year ended December 31, 2024; and • an increase of R$0.4 billion in administrative expenses, representing a 2.2% increase compared to the year ended December 31, 2024. 2024 and 2023 Operating income before tax attributed to the Commercial Banking segment for the year ended December 31, 2024, was R$12,461 million, a R$6,508 million increase from R$5,953 million for the year ended December 31, 2023. This variation was mainly due to: • an increase of R$6.9 billion in net interest income representing a 15.5% increase compared to the year ended December 31, 2023; and 169 Table of Contents • an increase of R$1.6 billion in net fee income, representing a 12.6% increase compared to the year ended December 31, 2023. Global Wholesale Banking For the Year Ended December 31, 2025 2024 2023 % Change 2025/2024 % Change 2024/2023 (in millions of R$, except percentages) Net interest income 4,509 5,115 2,232 (11.9) 129.2 Income from equity instruments 78 79 19 (0.7) 320.8 Income from companies accounted for by the equity method 84 54 54 57.4 (1.3) Net fee and commission income 2,099 2,262 2,370 (7.2) (4.6) Gains/losses on financial assets and liabilities (net) and exchange differences (net) 4,338 1,617 4,920 168.3 (67.1) Other operating income (expenses) (105) (172) (120) (39.2) 43.8 Total income 11,003 8,954 9,476 22.9 (5.5) Administrative expenses (2,161) (2,047) (1,942) 5.6 5.4 Personnel expenses (1,131) (1,064) (1,060) 6.3 0.4 Other administrative expenses (1,031) (983) (882) 4.9 11.4 Depreciation and amortization (159) (132) (120) 20.5 10.3 Provisions (net) (85) (12) (20) 577.4 (37.6) Impairment losses on financial assets (net) (722) (33) (1,425) 2070.4 (97.7) Impairment losses on other assets (net) (84) — — n.m. n.m. Operating income before tax 7,791 6,730 5,969 15.8 12.7 2025 and 2024 Operating income before tax attributed to the Global Wholesale Banking segment for the year ended December 31, 2025, was R$7,791 million, an increase of R$1,062 million, or 15.8%, from R$6,730 million for the year ended December 31, 2024. which was primarily due to (i) higher performance in treasury and market business and (ii) growth in demand deposits of the banking business. 2024 and 2023 Operating income before tax attributed to the Global Wholesale Banking segment for the year ended December 31, 2024, was R$6,730 million, a 12.7% or R$761 million increase from R$5,969 million for the year ended December 31, 2023, which was primarily due to a decrease in impairment losses on financial assets (net) mainly driven by a specific case of a large customer in our wholesale segment. 5B. Liquidity and Capital Resources Our asset and liability management strategy is set by the asset and liability committee, which operates under strict guidelines and procedures established by the Santander Group. The asset and liability committee establishes, among other policies, our funding strategy, and the target positioning with respect to structural balance sheet risk. 170 Table of Contents Pursuant to the Santander Group’s model, all subsidiaries must be self-funded in terms of liquidity and capital. In addition, our general asset and liability management policy is to maintain a close match of maturity, interest rate and currency exposures. Subject to our internal risk management policies we aim to maintain adequate liquidity to meet our present and future financial obligations and to capitalize on business and market opportunities as they arise. Most of our liquidity is raised in the local market and we maintain a portfolio of high-quality public bonds for liquidity management. Legal reserve requirements consume a significant amount of funding in Brazil, see “Item 4. Information on the Company—B. Business Overview—Regulation and Supervision—Other Applicable Laws and Regulations—Compulsory Reserve Requirements.” Due to our diversified sources of funding, which include a large client deposit base in the local market and a large number of correspondent banks with long-standing relationships, historically we have not experienced liquidity problems. In our opinion, our current levels of liquidity are sufficient for our present requirements. See also “Item 4. Information on the Company—B. Business Overview—Selected Statistical Information.” Liquidity and Funding In addition to a minimum liquidity level that meets our stress scenarios, we monitor concentration of funding ratios and the short term (LCR) and long term (Net Stable Funding Ratio) liquidity metrics, which aims to guarantee a stable funding profile. We control, manage and review our liquidity analyzing current and expected levels of liquidity, structuring the sources of financing to achieve an optimal diversification in terms of maturities, instruments, currencies, markets, as well as setting forth contingency plans. The objective is to ensure that we have sufficient liquidity to honor our commitments in light of market conditions, our institutional needs and market opportunities. Due to our stable and diversified funding sources, which include a large base of customer deposits as detailed below, we have historically had no liquidity deficiencies. As part of our liquidity management, we have a formal plan with measures to be taken in the event of a systemic liquidity crisis and/or for liquidity concerns arising from possible reputational risk. Our liquidity contingency plan contains defined thresholds, preventive measures and actions to be taken when a liquidity deficiency occurs and our reserves fall below certain levels. The following resources and strategies may be used as sources of funding: (i) increase of customer deposits; (ii) securities issuances; (iii) repurchase agreements; (iv) a review of transfer pricing practices; and (v) establishment of more restrictive credit policies. For further information, see notes 16, 17, 18, 19 and 20 to our audited consolidated financial statements included elsewhere in this annual report. The following tables present the composition of our consolidated funding at the dates indicated. 171 Table of Contents As of December 31, 2025 2024 2023 (in millions of R$) Customer deposits 593,329 605,068 583,221 Current accounts 31,907 41,297 36,599 Savings accounts 53,201 57,369 58,075 Time deposits 431,659 425,287 390,497 Repurchase agreements 76,562 81,115 98,049 Backed operations with Private Securities(1) 18,907 13,688 21,551 Backed operations with Public Securities 57,655 67,426 76,499 Deposits from credit institutions 146,868 158,565 118,512 Deposits on demand 1,951 859 5,100 Time deposits(2) 119,636 126,588 95,290 Repurchase agreements 25,280 31,119 18,122 Backed operations with Private Securities(1) — — 63 Backed operations with Public Securities 25,280 31,119 18,059 Total deposits 740,196 763,634 701,733 Liabilities arising from securities(3) 159,926 139,678 130,383 Agribusiness Credit Notes 38,740 32,447 36,423 Treasury Bills 38,234 24,516 22,729 Real Estate Credit Notes 64,899 62,864 57,619 Bonds and other securities 18,053 19,851 13,612 Debt Instruments Eligible to Compose Tier 1 and Tier 2 Capital 28,114 23,138 19,627 Total Funding 928,236 926,450 851,743 (1) Refers primarily to repurchase agreements backed by debentures. (2) This includes transactions with credit institutions in connection with export and import financing lines, BNDES and FINAME on-lending and abroad on other credit lines abroad. (3) In the year ended December 31, 2023, we revised the definition of marketable debt securities to include the line items “Financial liabilities measured at fair value in income held for trading” and “Financial liabilities at amortized cost,” instead of only including “Financial liabilities at amortized cost.” The amounts presented as of December 31, 2025, 2024 and 2023 reflect this change. Deposits Customer Deposits Our balance of customer deposits was R$593.3 billion on December 31, 2025, R$605.1 billion on December 31, 2024, and R$583.2 billion on December 31, 2023, representing 63.9%, 65.3% and 68.5% of our total funding, respectively. Current Accounts Our balance of current accounts was R$31.9 billion on December 31, 2025, R$41.3 billion on December 31, 2024 and R$36.6 billion on December 31, 2023, representing 4.3%, 5.4% and 5.2% of total deposits, respectively. 172 Table of Contents Savings Accounts Our balance of savings accounts was R$53.2 billion on December 31, 2025, R$57.4 billion on December 31, 2024, and R$58.1 billion on December 31, 2023, representing 7.2%, 7.5% and 8.3% of total deposits, respectively. Customer Time Deposits Our balance of customer time deposits was R$431.7 billion on December 31, 2025, R$425.3 billion on December 31, 2024, and R$390.5 billion on December 31, 2023, representing 58.3%, 55.7% and 55.6% of total deposits, respectively. Customer Repurchase Agreements We maintain a portfolio of Brazilian public and private sector debt instruments used to obtain overnight funds from other financial institutions or investment funds by selling such securities and simultaneously agreeing to repurchase them. Due to the short-term (overnight) nature of this funding source, such transactions are volatile and composed, generally, of Brazilian public securities and of repurchase agreements linked to debentures. Securities sold under repurchase agreements decreased to R$76.6 billion on December 31, 2025, from R$81.1 billion on December 31, 2024, and R$98.0 billion on December 31, 2023, representing 10.3%, 10.6% and 14.0% of total deposits, respectively. Deposits from Credit Institutions Our balance of deposits from credit institutions was R$146.9 billion on December 31, 2025, R$158.6 billion on December 31, 2024 and R$118.5 billion on December 31, 2023, representing 19.8%, 20.8% and 16.9% of total deposits, respectively. Our balance of deposits includes mainly borrowings and domestic on lendings: • Borrowings. We have relationships with banks all over the world, providing credit lines as foreign currency-linked (either to the U.S. dollar or to a basket of foreign currencies). We apply the proceeds from these transactions mainly to U.S. dollar-linked lending operations and in particular to trade finance operations. • Domestic Onlendings. We borrow from public institutions, mainly BNDES and FINAME, for which we act as a financial agent. Funding from these sources in Brazil represents a method of providing long-term loans with attractive average interest rates to certain sectors of the economy. Loans from these funds are allocated by BNDES through banks to specific sectors targeted for economic development. This type of lending is known as “repassing” or “onlending.” Because the repassed funds are generally matched and/or funded by loans from a federal government agency, we take no interest rate or maturity mismatch risk nor charge interest at a fixed margin over the cost of funds. We, however, retain the commercial credit risk of the borrower and therefore have discretion in the lending decision and application of the credit criteria. This type of funding is not affected by compulsory deposit requirements. The onlending is generally secured or guaranteed, although this is not required by the terms of the onlending. Other Funding Liabilities arising from securities Our balance of liabilities arising from securities was R$159.9 billion on December 31, 2025, R$139.7 billion on December 31, 2024, and R$130.4 billion on December 31, 2023, representing 17.2%, 15.1%, and 15.3% of our total funding, respectively. Agribusiness credit notes (Letra de Crédito do Agronegócio), which are credit notes that are freely negotiable and represent an unconditional promise of payment in cash, are issued exclusively by financial institutions and related to credit rights originated from transactions conducted between rural producers and their cooperatives and agents of the agribusiness production chain and the exchange acceptances, reached R$38.7 billion on December 31, 2025, R$32.4 billion on December 31, 2024 and R$36.4 billion on December 31, 2023. Financial bills (Letras Financeiras) are a funding alternative available to banks that can be characterized as senior or eligible to compose the regulatory capital, pursuant to CMN Resolution No. 5,007, of March 24, 2022, with a minimum term of 24 months and minimum amounts of R$300,000 for subordinated transactions and R$50,000 for senior transactions. Our balance of treasury bills totaled R$38.2 billion on December 31, 2025, a 56.0% increase from R$24.5 billion on December 31, 2024. 173 Table of Contents Real estate credit notes (Letras de Crédito Imobiliário) increased by 3.2%, from R$62.9 billion on December 31, 2024, to R$64.9 billion on December 31, 2025. We undertake issuances of securities, including under our Global Medium Term Notes Program. Our balance of bonds and other securities was R$18.1 billion on December 31, 2025, and R$19.9 billion on December 31, 2024. This change was principally due to favorable market conditions. Debt Instruments Eligible to Compose Tier 1 and Tier 2 Capital On November 5, 2018, our board of directors approved the issuance, through our Cayman Islands branch, of debt instruments to form part of our Tier 1 and Tier 2 regulatory capital in the aggregate amount of U.S.$2.5 billion, pursuant to an offering made to non-U.S. Persons under Regulation S of the U.S. Securities Act of 1933, as amended, or the “Notes Offering.” Our Notes Offering was structured as follows: (i) U.S.$1.25 billion indexed 7.25% per year with no maturity (perpetual) and interest paid semiannually; and (ii) U.S.$1.25 billion indexed 6.125% per year maturing in November 2028 and interest paid semiannually. These issuances were made through our Cayman Islands branch and as a result they do not generate liability for income tax at source. In addition, our board of directors also approved the redemption of debt instruments issued to form part of our Tier 1 and Tier 2 regulatory capital, as set out in the board’s resolution of January 14, 2014. The proceeds from the Notes Offering were used to fund this redemption. On December 18, 2018, the Brazilian Central Bank authorized the transactions contemplated in the Notes Offering and the redemption, which were completed on January 29, 2019. In November and December 2021, Santander Brasil issued financial bills with a subordination clause, to be used to compose our Tier 2 regulatory capital, in the total amount of R$5.5 billion. The financial bills have a term of ten years, and redemption and repurchase options in accordance with the applicable regulations. The financial bills had an estimated impact of 92 basis points on our Tier 2 regulatory capital. In October and November 2023, Santander Brasil exercised its option to repurchase the Tier 2 debt instruments issued in 2018 in the amount of U.S.$1.25 billion. In their place to compose our Tier 2 regulatory capital, Santander Brasil issued financial bills with a subordination clause in the total amount of R$6.0 billion. These new financial bills have a term of 10 years, and redemption and repurchase options in accordance with the applicable regulations. On November 8, 2024, Santander Brasil also exercised its option to repurchase certain Tier 1 debt instruments issued in 2018 in the amount of U.S.$1.25 billion. In their place to comprise our Tier 1 regulatory capital, Santander Brasil issued subordinated financial bills in the total amount of R$7.6 billion. These new financial bills are perpetual with a repurchase clause exercisable as from five years of their issuance, in accordance with the applicable regulations. Furthermore, on December 4, 2025, Santander Brasil issued financial bills with a Tier 2 subordination clause in the total amount of R$2.4 billion. These new financial bills have a term of 10 years, semiannual coupon payments as well as redemption and repurchase options in accordance with the applicable regulations. As of December 2025, the balance for both Tier 1 and Tier 2 debt instruments was R$28.1 billion, compared to R$23.1 billion as of December 31, 2024. Capital Management Our capital management is based on conservative principles and continuous monitoring of the items that affect our solvency level. We are required to comply with Brazilian capital adequacy regulations under Brazilian Central Bank rules. In October 2013, the new regulations implementing the capital and the regulatory capital requirements of the Basel Committee on Banking Supervision (Basel III) came into effect in Brazil, including the recently enacted Resolution No. 229, which reformed the prudential rules applicable to capital requirements associated with credit risk under the standardized approach (RWACPAD). For additional information regarding minimum regulatory level and other Basel III requirements, see “Item 4. Information on the Company—B. Business Overview—Regulation and Supervision— Capital Adequacy and Leverage—Basel—Basel III” and note 30, Operational Ratios, to our audited consolidated financial statements included elsewhere in this annual report. CMN regulations establish conservative capital and countercyclical buffers for Brazilian financial institutions and determine the minimum percentages applicable as well as which sanctions and limitations will apply in case of noncompliance with such additional requirements. See “Item 4. Information on the Company—B. Business Overview—Regulation and Supervision—Principal Limitations and Obligations of Financial Institutions.” 174 Table of Contents Capital Expenditures See “Item 4. Information on the Company—A. History and Development of the Company—Capital Expenditures and Divestitures.” Off-Balance Sheet Arrangements We have entered, in the normal course of business, into several types of off-balance sheet arrangements, including lines and letters of credit and financial guarantees. For more information, see note 43 to our audited consolidated financial statements included elsewhere in this annual report. Lending-Related Financial Instruments and Guarantees We use lines and letters of credit and financial guarantee instruments to meet the financing needs of our customers. The contractual amount of these financial instruments represents represent the maximum possible credit risk should the counterparty draw down the commitment or we fulfill our obligation under the guarantee, and the counterparty subsequently fails to perform according to the terms of the contract. Most commitments and guarantees expire without the counterparty drawing on the credit line or a default occurring. As a result, the total contractual amount of these instruments does not represent our future credit exposure or funding requirements. Further, certain commitments, primarily related to consumer financing are cancelable, upon notice, at our option. The “maximum potential amount of future payments” represents a notional amount potentially lost if a total default by the guaranteed parties occurred, without considering possible recoveries from collateral held or pledged, or those under recourse provisions. There is no relationship between these amounts and probable losses on these guarantees. In fact, the maximum potential amount of future payments significantly exceeds inherent losses. For further information, see note 43 to our audited consolidated financial statements included elsewhere in this annual report. Contractual Obligations Our contractual obligations as of December 31, 2025 are summarized as follows: As of December 31, 2025 Total Less than 1 year 1-3 years 3-5 years More than 5 years (in millions of R$) Contractual Obligations Customer deposits 593,329 481,704 80,557 30,234 835 Liabilities arising from securities(1) 159,926 23,498 40,034 70,206 26,187 Debt Instruments Eligible as Capital(2) 28,114 — — — 28,114 Deposits from credit institutions(3) 146,868 145,465 1,403 — — Total 928,236 650,667 121,993 100,440 55,136 (1) In the year ended December 31, 2023, we revised the definition of marketable debt securities to include the line items “Financial liabilities measured at fair value in income held for trading” and “Financial liabilities at amortized cost,” instead of only including “Financial liabilities at amortized cost.” The amounts presented as of December 31, 2025, 2024 and 2023 reflect this change. (2) The table above excludes the notional and any interest payments relating to our perpetual Tier I bonds which interests are discretionary as described in “Item 5. Operating And Financial Review And Prospects—A. Operating Results.” (3) Calculated for all Deposits from credit institutions, Customer Deposits, Marketable debt securities, Subordinated liabilities and Debt Instruments Eligible to Compose Capital (Tier II) assuming a constant interest rate based on data as of December 31, 2024 over time for all maturities, and those obligations with maturities of more than five years have an average life of ten years. 175 Table of Contents The above table does not reflect amounts payable on derivative contracts as they are dependent on changes in financial markets. The net fair value position of our derivative contracts as of December 31, 2025 reflected assets of ‎R$5,796 million, compared to assets of ‎R$796 million as of December 31, 2024. In addition, we lease several properties under standard lease contracts, which can be cancelled or renewed at our option and include escalation clauses. The total future minimum payments of non-cancelable operating leases as of December 31, 2025 was R$3,595 million. From this total, R$1,531 million matures in up to one year, R$2,010 million matures from one year to up to five years and R$54 million matures after five years. We have no contracts with indeterminate maturities. 5C. Research and Development, Patents and Licenses, etc. We do not have any policy or significant project involving research and development, and we do not own patents or patents licenses, bearing in mind that we only have licenses involving trademarks. 5D. Trend Information The following list sets forth, in our view, the most important trends, uncertainties and events that are reasonably likely to continue to have a material effect on our revenues, income from continuing operations, profitability, liquidity and capital resources, or that may cause reported financial information to be not necessarily indicative of future operating results or financial condition: • economic and political conditions in Brazil, including the impact of the current international economic environment and the macroeconomic conditions in Brazil, and the policies of the new Brazilian administration that will take office following the presidential and other elections to be held in October 2026, may adversely affect the performance of the Brazilian economy. As a result, our credit portfolio, which is focused on Brazil, may not grow or could decrease and our provisions for loan losses increase; • a global economic downturn as a result of pandemics, epidemics or outbreaks of infectious diseases, or instability or conflicts (including the ongoing war between Russia and Ukraine and uncertainties following the ceasefire agreement in the Middle East, or the general economic and business conditions in Brazil, Latin America and globally), can have an adverse effect on the global market and economy, including Brazil. It may decrease the interest of investors in Brazilian assets, in addition to making it difficult for us to access the capital markets and finance our operations, including on acceptable terms; • uncertainties arising from the Brazilian presidential and other elections scheduled for October 2026, increased volatility in economic indicators and deceleration in growth rates may negatively affect our strategic plan, with impacts on our profitability, asset quality, portfolio expansion and financing conditions; • exposure to various types of inflation and interest rate risks, and the Brazilian government’s efforts to control inflation and interest rates; • continued market volatility and instability that could affect our revenues; • extensive regulation by the Brazilian government and the Brazilian Central Bank, among others, which could affect our margins and/or growth in lending activities; • regulatory capital changes toward more restrictive rules as a response to any potential financial crisis or general macroeconomic conditions; • decreased liquidity in domestic capital markets; • changes in taxes or other fiscal assessments that could decrease our profitability; • exchange rate volatility and exchange rate controls that could have an adverse impact on international investors; • our ability to protect ourselves against cybersecurity risks; 176 Table of Contents • the effects of climate change, including transition risks, physical risks and other risks that could adversely affect us; and • our dependence on the proper functioning of information technology systems. Conversely, a recovery in the Brazilian economy by means of economic reforms (e.g., an overhaul in the income tax structure) could have a positive effect on the Brazilian economy and, therefore, on our business. For more information, see “Item 3. Key Information—D. Risk Factors” where we present the risks we face in our business that may affect our commercial activities, operating results or liquidity. 5E. Critical Accounting Estimates Our financial statements are presented in IFRS as issued by the IASB. For summary information about critical judgments, assumptions and estimation uncertainties in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements, see “—A. Operating Results—Principal Factors Affecting Our Financial Condition and Results of Operations—Critical Accounting Policies” and notes 1(c) and 2 to our audited consolidated financial statements included elsewhere in this annual report.