Santander Brasil's Q4 net profit down 46% from previous quarter (updated)

Banco Santander Brasil SA

02/02/2023 10:43

(Adds details, context, CFO quotes)
       SAO PAULO, Feb 2 (Reuters) - Banco Santander Brasil SA
 SANB3.SA  on Thursday reported a fourth quarter net profit of
1.69 billion reais ($334.34 million), down 46% from the previous
quarter as loan-loss provisions rose 18.6% in the period.
    The bottom line fell short of expectations, as analysts
polled by Refinitiv had forecast the local unit of Spain's Banco
Santander SA  SAN.MC  to post a 2.86 billion-real profit in the
period.
    Chief financial officer Angel Santodomingo said last
quarter's results came as Santander started an operational
adjustment to better position itself against a more challenging
macroeconomic backdrop, with potential repercussions on credit
dynamics.
        "We have been more selective in our lending, and a
deterioration in credit conditions has materialized," he said in
a statement, noting the bank's net interest income came under
pressure from changes in the product mix and higher interest
rates - a trend set to persist throughout this year.
  
        In the full year of 2022, net profit dropped 21.1% from
the previous year to 12.9 billion reais, Santander Brasil said. 
  
        The South American country accounts for more than a
quarter of Santander's group earnings, with the Spanish parent
firm 
    also reporting results
     on Thursday showing an 18% jump in profit to a record 9.6
billion euros in 2022.
  
($1 = 5.0547 reais)
 (Reporting by Gabriel Araujo; Editing by Steven Grattan)
 ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))