Santander Brasil has profit of R$ 2.14 billion, down 47% for the 1st quarter

[ad_1]

The bank used reversal of provisions related to tax issues, in the amount of R$ 4.2 billion, to reinforce the balance sheet, according to the result. Santander bank branch located in Anápolis, Goiás fair (25). Performance was affected in part by higher bad debt provisions. The bank reported that gross income from loan losses totaled BRL 11 billion in the first quarter, an increase of 49.4% in the quarter and 138.5% in the year, “increased by a balance sheet reinforcement of BRL 4.2 billion carried out in the quarter”. The bank used reversal of provisions related to tax issues, in the amount of R$ 4.2 billion, to reinforce the balance sheet, according to the result. Analysts, on average, had expected a net profit of 1.83 billion reais for Santander Brasil in the first quarter, according to data from Refinitiv. Santander Brasil had a drop of 31.6% in the net financial margin in the first three months of the year over the same period of 2022, but an evolution of almost 24% compared to the end of last year. The default rate over 90 days ended March at 3.2% compared to 2.9% a year earlier and 3.1% in the fourth quarter of last year. Short-term defaults also grew, from 4.2% in the first quarter of 2022 to 4.5% now. “The PDD (provision for bad debt) and the increase in the cost of credit are compatible with the moment, being still pressured by old harvests”, said Santander Brasil in the balance sheet. The bank had a 10.1 percentage point drop in return on equity, to 10.6%, in the first quarter compared to the same period last year, but the efficiency ratio increased by almost 5 points, to 40.8%. The bank increased the expanded loan portfolio by 12.3% in the first quarter over a year earlier, to R$586.35 billion, driven by the line for large companies, which grew by 18.9%. In individuals, the portfolio grew 8.4%.

[ad_2]

Source link