Santander profits BRL 3.12 billion in the 3rd quarter, down 28% year-on-year

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Banco Santander Brasil reported net income of BRL 3.122 billion in the third quarter of 2022, which corresponds to a decrease of 28% compared to the same period last year and 23.5% compared to the previous quarter, according to the earnings report. released this Wednesday morning (26).

“The current moment leads to lower revenues, given the greater selectivity we apply to our portfolio”, said Mario Leão, CEO of the bank, in the earnings report.

The loan portfolio reached R$484.2 billion in September 2022, an increase of 7.5% on an annual basis and of 3.4% in the quarterly comparison.

Among individuals, the biggest increases in the annual comparison were in personal credit operations (18.8%), credit cards (13.3%), payroll (8.4%) and real estate (7.4%).

Among legal entities, the highlight was rural credit, with growth of 29.8%, and the foreign trade line, with growth of 25.4%,

The delinquency rate over 90 days at Santander Brasil ended the third quarter of the year at 3%, compared to 2.4% a year ago and 2.9% in June 2022.

Among individuals, the default rate reached 4.3% in the quarter, against 3.3% in September 2021 and 4.1% in the previous quarter.

The result of bad debt, which indicates the possible losses that the bank may suffer from the non-payment of defaulting customers, totaled R$ 6.209 billion in the quarter, an increase of almost 70% year-over-year and 8.1% in the quarter .

According to the bank, the individual segment and the change in the product mix were the main factors responsible for the increase.

Revenues from banking services and fees totaled R$ 4.734 billion in the third quarter, down 2% on an annual basis and 3% on a quarterly basis. Lower fund management, credit card and brokerage revenues were among the reasons for the decline.

ROAE (return on average equity), which measures the level of profitability of financial institutions’ operations, reached 15.6%, against 22.4% a year ago and 20.8% at the end of the second quarter of 2022.

“We have clear opportunities for growth, which will be resumed through the expansion of credit, reduced delinquency and spending control,” said Leão.

X-RAY | SANTANDER BRAZIL

Foundation: Active in the local market since 1982
Net income in the 3rd quarter of 2022: BRL 3.122 billion
Customers: 57.7 million
Agencies: 1,722
Employees: 51,214
Mainly competitors: Itaú Unibanco, Bradesco, Banco do Brasil, Caixa

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