Scandals mark Santander profit in 2019


A scandal festival marked Santander’s profit in 2019. The bank earned R $ 14.5 billion in 2019, a 17.4% increase compared to 2018. As a result, it became responsible for 28% of the bank’s global profit Spanish.

Scandal 1: expressive increase in profit in a country with a weak economy

The result of financial intermediation grew by 15%. The result was obtained by charging extortionate interest from companies and individuals, proving that the bank is not part of the solution, but contributes to aggravate the crisis by not providing affordable credit, which could help the economy grow and reduce the unemployment.

Scandal 2: job closings in a country with more than 12 million unemployed

In the last quarter of the year, Santander eliminated 1,663 jobs. With this, the bank ended 2019 with 47,819 employees.

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In addition to charging extortionate interest that debts families, stifles the productive sector and inhibits economic growth, the bank also contributes to unemployment by eliminating jobs. This in a financial institution where the overload of work that causes illness is the rule, and that is in the top of customer complaints to the Central Bank.

Scandal 3: charging fees and services (only) to the poorest and middle class

While Brazil lives with unemployment and reduced income, by charging interest and extortion rates, Santander withdraws even more money from its customers to increase executive bonuses and shareholder earnings. But that is only for poor or middle class customers, because high-income customers do not pay for tariffs and services.

Revenues from bank fees and services rendered reached R $ 18.684 billion in the year, an increase of 8.1% in twelve months. Personnel expenses, including profit sharing, totaled R $ 9.5 billion in 2019, an increase of 1.4% in twelve months, despite the CCT readjustment having been 4.31%. Accordingly, with revenue from fees and services, Santander covers 197% of its total personnel expenses.

Scandal 4: difference in abyssal income between workers and executive directors of Santander

The directors Santander executives received 765 times more than clerks in 2018, according to CVM data, reflecting the inequality and concentration of income verified in Brazil, where five Brazilian billionaires concentrate the same wealth of the poorest half in the country, according to a study by Oxfam.

Scandal 5: non-compliance with the Federal Constitution

Article 192 of the Federal Constitution requires the national financial system to be “structured in a way that promotes the balanced development of the country and serves the interests of the community”, while also setting a limit on real interest rates.

“Banks are public concessions that have a function determined by the Federal Constitution of economic and social development, but this function is ignored and they act as true social predators appropriating the resources of the State and society, contributing to the increasingly absurd increase in social inequality in the country, ”says Rita Berlofa, executive director of the Union and Santander bank.

“We cannot passively accept this situation. Society needs to react and demand a reduction in interest rates, tariffs and the maintenance of jobs that guarantee quality of life in the work environment and outside it in order to alleviate or eradicate the stress level of workers, providing them with health and well-being ” , adds Rita.

As for salary differences, according to a survey conducted by Mercer consultancy in 130 countries, in the 601 companies analyzed, the high ranking employee in Brazil earns, on average, 34 times more than his operational colleague. In the United States, where meritocracy is one of the greatest incentives to work, the executive’s salary is 11 times that of the worker. In other countries like Germany and Japan, the figures are even lower: five and seven, respectively.

“It is all too scandalous that a Santander executive, here in Brazil, can earn up to 765 times more than a clerk”, concludes Rita Berlofa.


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