Santander Brasil recorded a net income of R$ 4.005 billion in the first quarter of 2022, which corresponds to a slight growth of 1.3% compared to the same period last year and 3.2% compared to the fourth quarter. The information was released on Tuesday morning (26) by the bank.
The result is largely due to the performance of the loan portfolio, which ended March at R$455.1 billion, up 7.2% on an annual basis, but down 1.6% from the last quarter. of 2021.
The segments of individuals and small and medium-sized companies stood out in comparison with the same period in 2021, with growth of 19% and 12.2%, respectively.
Among individuals, the products that presented the greatest positive contributions to the bank’s results were credit cards (30.5%), personal/other credit (30.4%), real estate credit (15.2%) and payroll (9.2%).
In the large companies division, there was a drop of 10.8%. According to Santander, the decrease is mainly due to exchange rate volatility in the period, as well as a lower level of renewals of operations.
rise in delinquency
The delinquency rate over 90 days at Santander Brasil was 2.9% at the end of the first quarter, against 2.1% in the same period of the previous year and 2.7% in December.
Among individuals, the late payment rate reached 4% at the end of last month, an increase of 0.88 percentage points on an annual basis and 0.33 points at the margin.
In the case of companies, the default rate reached 1.4%, an increase of 0.39 percentage point in the year and 0.06 point in the quarter.
In the earnings report for the fourth quarter of 2021, large banks were unanimous in indicating the expectation for an increase in late payments throughout this year.
Rising interest rates and inflation, combined with weak growth in economic activity, tend to put pressure on household spending in the coming months.
“We continue our history of growth, with consistent and recurring results, supported by our good ability to anticipate trends. Our measures allowed us to achieve solid performances in some of our main businesses. We believe in a combination of an expansion-oriented culture and good capacity to reaction to the signals, which can be evidenced by our risk management”, said Mario Leão, CEO of Santander Brasil, in the earnings report.
The balance of provisions for doubtful accounts, in turn, reached R$ 28.4 billion in March, an increase of 10.4% year-on-year and 4.7% in the quarterly comparison.
“Our loan portfolio quality remains at controlled levels, showing the already expected deterioration of delinquency, given the macroeconomic scenario and in line with the volume and mix of origination”, said Angel Santodomingo, the bank’s CFO.
The ROAE (return on equity, an indicator that measures the profitability of the operation) of Santander Brasil was 20.7% in the first quarter, practically stable in relation to the same quarter of the previous year (20.6%), and an increase of 0.6 percentage point at the margin.
Santander Brasil leads in terms of operating profitability among Brazilian banks, being the third most profitable compared to peers on a global scale, according to a survey by Economatica.
On April 14, the bank approved the payment of dividends and JCP (Interest on Equity) in the amount of R$ 1.7 billion, payable as of May 16.
X-RAY | SANTANDER BRAZIL
Foundation: Active in the local market since 1982
Net income in the 1st quarter of 2022: BRL 4.005 billion
Customers: 54.8 million
Agencies: 1,787
Employees: 49,090
Mainly competitors: Itaú Unibanco, Bradesco, Banco do Brasil, Caixa
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