Santander Brasil beats forecasts but raises loan-loss provisions (updated)

Banco Santander Brasil SA

28/07/2022 08:42

(Adds loan-loss provisions, loan book, CFO quote)
    SAO PAULO, July 28 (Reuters) - Banco Santander Brasil SA's
 SANB11.SA  second-quarter net income beat market expectations
but loan-loss provisions rose sharply from the previous quarter
against a challenging macroeconomic backdrop.
    Net profit rose 2% from the previous quarter to a better
than expected 4.08 billion reais ($778.08 million), a securities
filing showed.
    Analysts polled by Refinitiv had forecast the Brazilian unit
of Spain's Banco Santander SA  SAN.MC  would post net income of
3.88 billion reais.
    However, Santander Brasil said that loan-loss provisions hit
5.75 billion reais, up 24.6% from the first quarter. 
    The lender's loan book rose 2.9% quarter on quarter to
465.54 billion reais.
    "Despite a still-challenging macroeconomic environment, loan
portfolio quality indicators were stable over the period,"
Santander Brasil finance chief Angel Santodomingo said in
statement.
    Brazil is the Spanish lender's largest customer base and
accounts for almost a third of underlying group profit.
 urn:newsml:reuters.com:*:nL8N2Z91PJ

($1 = 5.2437 reais)

 (Reporting by Gabriel Araujo
Editing by David Goodman)
 ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))