BSBR · Banco Santander (Brasil) S.A.

Banco Santander (Brasil) reported its first quarter 2026 results, showing a net profit of BRL 3.8 billion, a decline of 7.3% quarter-over-quarter and 1.9% year-over-year. Return on equity fell to 16.0% from 17.6% in the prior quarter and 17.5% in the same period last year. Total revenues edged up 0.8% QoQ and 0.9% YoY to BRL 21.2 billion, supported by a 3.1% QoQ increase in net interest income, though NII declined 0.7% YoY. Fee income grew 5.8% YoY, driven by cards (+9.8%) and insurance (+12.2%), but fell 5.5% QoQ due to seasonality. The expanded loan portfolio contracted 0.4% QoQ but expanded 3.4% YoY to BRL 705.6 billion, with consumer finance leading growth at 14.2% YoY. Total funding reached BRL 743.3 billion, up 0.6% QoQ and 2.8% YoY. Provision for loan losses increased 3.9% QoQ to BRL 6.3 billion, reflecting pressure from the macroeconomic environment and household indebtedness, but declined 0.7% YoY due to active risk management. Expenses were stable QoQ and rose only 0.9% YoY, below inflation, demonstrating cost discipline. The bank highlighted its focus on sustainable growth, with sustainable business deals of BRL 10.8 billion in Q1 2026 and a sustainable credit portfolio of BRL 52.4 billion, up 30% YoY. The economic environment in Brazil showed mixed signals: GDP recovery in early 2026, but inflation reaccelerated to 4.1% in March due to energy and food prices, while the central bank began a cautious rate-cutting cycle, reducing the Selic to 14.75%.