Santander Brasil earns BRL 2.14 billion in the 1st quarter, down 46.6% – 04/25/2023 – Market

Santander Brasil recorded a net profit of BRL 2.14 billion in the first quarter of 2023, which represents a drop of 46.6% compared to the same period last year, according to a balance sheet released this Tuesday (25).

The result was in line with the expectations of analysts, who projected a profit of R$ 2.1 billion in the period. Compared to the fourth quarter of 2022, there was an increase of 26.7%.

“We started 2023 focused on strengthening our balance sheet. The credit selectivity, which we are adopting from the end of the fourth quarter of 2021, focusing on products with guarantees and customers with a better rating profile, allows for a better balance sheet quality”, said Mario Leão, CEO of Santander Brazil.

The bank’s credit portfolio ended March at R$ 500.3 billion, expansion of 9.9% on an annual basis and 2.2% in relation to the immediately previous quarter.

The individual loan portfolio reached BRL 228.7 billion, an increase of 8.4% compared to the same period of last year and 1.1% in the quarterly comparison. Among the highlights in the segment, payroll loans increased by 14.4%, personal loans increased by 8.5% and real estate loans, by 6.8%.

“We remain focused on strengthening the balance sheet, building a higher quality portfolio. We continue with our strategy of expanding into products with guarantees, with 65% of the portfolio
collateralized individual credit”, said Gustavo Alejo, financial director of Santander Brasil.

The default rate reached 3.2% at the end of the quarter, against 2.9% in March 2022 and 3.1% in December. Among individuals, the rate of delays over 90 days was 4.5%, against 4% a year ago and 4.3% in December 2022.

The result of loan losses, in turn, reached R$ 6.7 billion in March, an increase of 46.7% year on year but a decrease of 8.1% in the quarterly comparison. The advance was mainly due to the individual segment, given the growth and composition of the portfolio. “The PDD [provisão para devedores duvidosos] and the cost of credit continue to be impacted by old vintages, as expected”, said Alejo.

Income from services rendered and bank fees totaled R$4.7 billion, up 1.8% on an annual basis, but down 7.4% quarter-on-quarter. The lower transactional volume in cards, the seasonal effect at the beginning of the year and the higher concentration of insurance policy renewals in the fourth quarter contributed to the drop in revenues in the quarterly comparison.

The ROAE (return on equity, indicator that measures the profitability of the operation) was 10.6% in the first quarter, down 10.1 percentage points compared to the same period in 2022 and up 2.2 points over the fourth quarter of 2022.

X-RAY | SANTANDER BRAZIL

Foundation: Active in the local market since 1982
Net income in the 1st quarter of 2023: BRL 2.14 billion
Customers: 61.6 million
Agencies: 1,687
Employees: 53,556
Mainly competitors: Itau Unibanco, Bradesco, Banco do Brasil, Caixa