Banco Santander Brasil (NYSE:BSBR) Announces Earnings Results

Banco Santander Brasil (NYSE:BSBR) posted its quarterly earnings data on Wednesday. The bank reported $0.08 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.12), FiscalAI reports. Banco Santander Brasil had a net margin of 7.06% and a return on equity of 10.49%. The business had revenue of $3.59 billion during the quarter, compared to analyst estimates of $4.17 billion.

Here are the key takeaways from Banco Santander Brasil’s conference call:

• Recurring net income was BRL 3 billion and ROAE was 12.5%, with profitability pressured by weaker revenue growth and a higher cost of risk in a challenging macroeconomic environment.
• Santander is accelerating its portfolio de-risking, reducing exposure to lower-income individual customers while prioritizing secured lending, higher-quality vehicles, mortgages, government-backed loans, and larger corporate customers. This is weighing on near-term spreads and fees but is intended to improve long-term risk-adjusted returns.
• Loan-loss provisions were affected by approximately BRL 700 million in wholesale cases and a new write-off methodology, while pressure continues in low-income individuals, smaller companies, and agribusiness. Management also expects a potentially more adverse macroeconomic scenario to affect provisions in coming quarters.
• Customer engagement and funding trends remained strong, with the customer base up 6% year over year to 76.2 million, transactional deposits up 18%, and early Santander Rewards cohorts showing higher engagement and card spending.
• Expenses remained under control, growing below inflation, while AI adoption and broader global platforms are expected to improve operating leverage. Management reaffirmed its 50% payout policy and expects ROE to return to more reasonable levels by 2027, supported by lower provisions, non-credit revenue growth, and efficiency gains.

Banco Santander Brasil Trading Down 6.8%

NYSE BSBR traded down $0.38 during trading on Wednesday, reaching $5.11. The company’s stock had a trading volume of 1,905,580 shares, compared to its average volume of 1,200,223. Banco Santander Brasil has a one year low of $4.62 and a one year high of $7.32. The company has a debt-to-equity ratio of 3.25, a current ratio of 1.29 and a quick ratio of 1.29. The firm has a fifty day moving average of $5.33 and a 200 day moving average of $5.91.

Banco Santander Brasil Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, August 17th. Stockholders of record on Thursday, July 30th will be given a $0.1045 dividend. The ex-dividend date is Thursday, July 30th. This represents a $0.42 annualized dividend and a dividend yield of 8.2%.

Insiders Place Their Bets

In other news, insider Eduardo Alvarez Garrido sold 7,500 shares of the stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $5.43, for a total value of $40,725.00. Following the completion of the transaction, the insider owned 24,701 shares of the company’s stock, valued at approximately $134,126.43. This represents a 23.29% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Mario Roberto Opice Leao bought 276,851 shares of the firm’s stock in a transaction on Tuesday, June 16th. The shares were acquired at an average cost of $5.38 per share, with a total value of $1,489,458.38. Following the purchase, the chief executive officer directly owned 536,751 shares of the company’s stock, valued at approximately $2,887,720.38. This represents a 106.52% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders purchased 500,251 shares of company stock worth $2,651,888. 0.06% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Banco Santander Brasil

Several large investors have recently bought and sold shares of BSBR. Mariner LLC lifted its stake in Banco Santander Brasil by 1.8% in the 4th quarter. Mariner LLC now owns 97,928 shares of the bank’s stock worth $598,000 after purchasing an additional 1,732 shares in the last quarter. Invesco Ltd. boosted its stake in shares of Banco Santander Brasil by 1.1% during the 4th quarter. Invesco Ltd. now owns 232,826 shares of the bank’s stock worth $1,423,000 after purchasing an additional 2,631 shares during the period. Royal Bank of Canada raised its holdings in shares of Banco Santander Brasil by 288.1% in the fourth quarter. Royal Bank of Canada now owns 5,038 shares of the bank’s stock worth $31,000 after buying an additional 3,740 shares during the period. Engineers Gate Manager LP boosted its stake in shares of Banco Santander Brasil by 40.9% during the second quarter. Engineers Gate Manager LP now owns 18,910 shares of the bank’s stock valued at $103,000 after purchasing an additional 5,490 shares during the period. Finally, Brooklyn Investment Group increased its position in shares of Banco Santander Brasil by 14.3% during the fourth quarter. Brooklyn Investment Group now owns 58,972 shares of the bank’s stock worth $356,000 after acquiring an additional 7,356 shares during the period. 14.53% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on BSBR shares. Weiss Ratings downgraded shares of Banco Santander Brasil from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, June 29th. Wall Street Zen downgraded shares of Banco Santander Brasil from a “buy” rating to a “hold” rating in a report on Sunday, July 12th. Zacks Research downgraded shares of Banco Santander Brasil from a “hold” rating to a “strong sell” rating in a research report on Friday, July 3rd. Finally, JPMorgan Chase & Co. lowered their target price on shares of Banco Santander Brasil from $7.00 to $6.50 and set an “overweight” rating on the stock in a report on Tuesday, July 7th. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average target price of $6.50.

About Banco Santander Brasil

Banco Santander Brasil SA is the Brazilian unit of Spain-based Grupo Santander and one of the country’s major commercial banks. Headquartered in São Paulo, the bank serves a broad client base across Brazil through an integrated network of branches, ATMs and digital channels. Its shares are represented abroad via American Depositary Shares listed on the New York Stock Exchange under the ticker BSBR.

The bank offers a full range of financial products and services for retail, small and medium-sized enterprises, and corporate clients.