Today we will comment on the results of Banco Santander Brasil for the first quarter of 2022, which mark the beginning of the balance sheet season for the major banks listed on B3.
Check below the comment by Rafael Bevilacqua, chief strategist and founding partner of the analysis house Levante Ideias de Investimento, on the subject. Every day, Bevilacqua brings you news and reviews of publicly traded companies for you to make the best investment decisions. This content is accessible to subscribers to UOL. O UOL has an exclusive area for those who want to invest their money safely and profit more than just savings. Meet!
Santander profits R$ 4 billion in the first quarter, but increase in provisions worries
Santander Brasil (SANB11) released its results for the first quarter of 2022 on Tuesday morning (26), opening the first season of balance sheets for large banks of the year.
The bank’s total revenue grew by 4.3% compared to the first quarter of 2021, totaling BRL 18.5 billion. However, provisions (reserves) for bad debts (PDD) grew 45.9% in the same period, totaling R$ 4.6 billion and causing concern.
Santander’s return on equity (ROE) in the first quarter of 2022 was 20.7%, practically stable compared to the same period of the previous year. ROE is a very important indicator for bank analysis, as it measures the ability of a company to generate value from its own resources.
The company’s gross financial margin, which measures the return obtained by the company from sales of products and services, grew 3.8% in the annual comparison, totaling R$ 13.9 billion in the quarter. The net financial margin, on the other hand, decreased 9.1% in the same period, to R$ 9.3 billion, due to the increase in general and tax expenses.
The bank’s loan portfolio grew by 7.2% compared to the first quarter of 2021, reaching R$455.1 billion. However, compared to the fourth quarter of last year, the portfolio shrank 1.6%.
Revenues from banking services and fees expanded by 5.7% year-on-year, reaching R$4.6 billion. However, this revenue line decreased by 7.3% compared to the immediately previous quarter.
In general, the result of Santander Brasil, the third largest private bank in the country, came a little below the consensus, mainly in terms of financial margin, seriously impacted by the sudden drop in operations with the market. In addition, the slight drop in its credit portfolio should displease the market.
In light of the disappointing results, we project a negative impact on the bank’s stock in the short term.
On Tuesday (26), Santander units closed down by 4.55%, quoted at R$32.10.
