Santander Brasil: managerial profit is BRL 1.6 billion in the 4th quarter, an annual drop of 56%

Santander Brasil recorded managerial net income (which excludes goodwill from acquisitions) of BRL 1.689 billion in the fourth quarter of 2022, down 56.5% compared to the same period of 2021. Compared to the third quarter of last year, the low was 45.9%.

In the last quarter of 2022, the bank again increased provisions against default, particularly affected by a “subsequent event”, that is, occurring after December 31, 2022, in the wholesale segment. The institution does not give further details, such as the name of the client.

In January, the Americanas retail chain filed for judicial recovery, with debts of approximately R$ 47 billion. Santander is one of the company’s biggest creditors, with around BRL 3.6 billion to be received, according to a preliminary estimate.

Santander’s margins fell 11.6%, while revenue from services rose 1.9% to R$5.075 billion. On the margins, the bank observed a new impact from treasury, which accumulates negative results in view of the high Selic rate.

In the quarter, the margin with the market, which accounts for the results with treasury, was negative by R$ 1.265 billion, against a gain of R$ 1.744 billion in the same period of the previous year.

In the margin with customers, which reflects the result with operations for companies or individuals, the result was R$ 13.781 billion, an increase of 11% in the space of one year. According to Santander, the growth was due to the greater volume of credit and also to the greater spread (difference between cost of funding and interest charged on loans).

In the accumulated of 2022, Santander had a profit of R$ 12.900 billion in Brazil, a decrease of 21.1% compared to 2021. . In addition, Santander’s margins were pressured by treasury losses, given the negative impact of high interest rates on the bank’s securities portfolio.

“We started an operational adjustment process in the fourth quarter of 2021. We sought to position ourselves appropriately to face a macroeconomic environment that proved to be more challenging, with potential repercussions on credit dynamics”, says in the statement the CFO of Santander Brasil, Angel Santodomingo.

He also points out that the bank starts 2023 with a solid balance sheet and a higher quality loan portfolio. “We will continue to grow sustainably,” he says.

equity and profitability

Santander Brasil reached December with BRL 1.047 trillion in assets, up 8.9% in one year. The bank comments that the result came with the increase in net interbank investments, in the credit portfolio and also in foreign exchange.

In the same period, the institution’s shareholders’ equity reached BRL 80.806 billion, an increase of 4.5% in one year.

Santander’s return on average equity (ROAE) was 8.3%, down 11.7 percentage points from the same period in 2021, and 7.3 pp in three months.