Santander Brasil Q1 net income in line with estimates, provisions rise (updated)

Banco Santander Brasil SA

26/04/2022 08:11

(Adds details, quote)
    By Gabriel Araujo
    SAO PAULO, April 26 (Reuters) - Brazilian lender Banco
Santander Brasil SA  SANB11.SA  posted on Tuesday first-quarter
net income that was roughly in line with consensus and up a
slight 3.2% from the previous three months, even as loan loss
provisions rose by 24.9% in the period.
    The Brazilian unit of Spain's Banco Santander SA  SAN.MC 
reported net income rose 1.3% from a year earlier to 4.005
billion reais ($821.17 million), versus a consensus of 4.026
billion from analysts polled by Refinitiv.
    Santander Brasil said its loan loss provisions hit 4.612
billion reais in the quarter, for growth of 45.9% year on year.
    Some analysts had expected weaker to flat results, with
Goldman Sachs mentioning "modest signs of asset quality
deterioration" in a preview. Bank of America said Santander's
earnings were growing less than those of private Brazilian banks
that trade at similar valuations.
    The company's loan book rose by 7.2% on the year to 455.16
billion reais, outpacing a 3.8% net interest income growth amid
higher interest rates in Brazil. Both indicators fell about 1.5%
on a quarterly basis.
    "Our loan portfolio quality remains under control, showing
the already anticipated deterioration in non-performing loans,
given the macroeconomic landscape and in line with our
origination volume and mix," the company said.
    The bank's return on average equity (ROAE), a gauge of
profitability, came in at 20.7%, a rise of 0.6 percentage point
from the previous three months.
($1=4.8772 reais)

 (Reporting by Gabriel Araujo; Editing by Louise Heavens and
Clarence Fernandez)
 ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))