You need to read that passage in its entire context by adding verse 10: “For we are God’s handiwork, created in Christ Jesus to do good works, which God prepared in advance for us to do.”
Yes we are saved by God’s grace through our faith which leads to our baptism. But faith does not encompass all that is required for salvation. Baptism is required.
Jesus thought so.
Luke 7:50 And he said to the woman, “Your faith has saved you; go in peace.”
John 3:14-18 And as Moses lifted up the serpent in the wilderness, so must the Son of Man be lifted up, 15 that whoever believes in him may have eternal life. “For God so loved the world, that he gave his only Son, that whoever believes in him should not perish but have eternal life. For God did not send his Son into the world to condemn the world, but in order that the world might be saved through him. Whoever believes in him is not condemned, but whoever does not believe is condemned already, because he has not believed in the name of the only Son of God.