Santander Brasil Q1 profit misses estimates as high rates, household debt weigh (updated)

Banco Santander Brasil SA

29/04/2026 11:50

Adds detailed figures, context throughout

SAO PAULO, April 29 (Reuters) - Banco Santander Brasil's SANB3.SA first-quarter net profit fell 1.9% from a year earlier to 3.79 billion reais ($761.66 million), the lender said on Wednesday, below analysts' expectations of 4.13 billion reais in an LSEG poll.

Latin America's largest economy is a key market for its Spanish parent Banco Santander SAN.MC, which reported its own results earlier in the day.

Net interest income (NII) - earnings on loans minus deposit costs - fell 0.7% to 15.81 billion reais.

The decline reflected lower market NII, negatively affected by sensitivity to high interest rates, the bank said in a securities filing.

Return on average equity (ROAE), a gauge of profitability, stood at 16%, down from 17.4% a year earlier.

Provisions for loan losses fell 2.6% year-on-year to 6.83 billion reais, but were up 0.9% on a sequential basis.

"Provisions remained pressured by the macroeconomic environment and elevated household indebtedness," Santander Brasil said.

Brazil's government has been crafting a debt renegotiation program to ease pressure on household budgets.

The results come as Santander Brasil readies a leadership transition, with CEO Mario Leao set to be replaced by stock exchange operator B3's B3SA3.SA CEO Gilson Finkelsztain by mid-year.

($1 = 4.9760 reais)

 (Reporting by Tiago Brandao in Gdansk and Gabriel Araujo in Sao Paulo. Editing by Louise Heavens and Mark Potter)

 ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))