Banco Santander (SANB11) has registered one of the biggest drops on the Brazilian Stock Exchange (B3) this Tuesday (26). At around 2:37 pm (Brasília time), the share was down 4.79%, quoted at R$32.02.
The devaluation comes after the bank released the result for the first quarter of 2022, which recorded net income of R$ 4.005 billion, 1.3% more than the same period of the previous year. Compared to the fourth quarter of 2021, growth was 3.2%.
Understand below why the results did not encourage the experts heard by the UOL and what to do with the bank’s shares.
The American bank Goldman Sachs (GS) disclosed that, although the results were slightly above Santander’s estimates, this happened because the bank paid less tax in the period. The effective tax rate has dropped from 31% (in the fourth quarter of 2021) to 28% in early 2022.
“In fact, earnings before tax were down 3% quarterly and 12% year-over-year,” Goldman Sachs said in a report. The institution also claims that the bank’s lending operations have slowed. “Volumes grew by only 6% year-on-year.”
Goldman Sachs’ recommendation for Santander shares is neutral — that is, it is not the time to buy or sell them —, with a target price of R$36 in 12 months.
BTG Pactual also has a neutral recommendation. “Santander reported lower-than-expected results this morning. Loans shrank 1.6% year-on-year,” BTG said in a report.