Banco Santander Brasil (NYSE:BSBR) Issues Earnings Results

by · The Cerbat Gem

Banco Santander Brasil (NYSE:BSBR – Get Free Report) announced its quarterly earnings results on Wednesday. The bank reported $0.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.11), FiscalAI reports. The business had revenue of $3.48 billion during the quarter, compared to analyst estimates of $4.19 billion. Banco Santander Brasil had a net margin of 7.49% and a return on equity of 11.06%.

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

  • Third-quarter recurring net income was R$2.9 billion and ROE was 11.9%, both below management’s longer-term ambitions, as high interest rates, household debt and portfolio rebalancing weighed on profitability.
  • Loan growth was strongest in mortgages, SMEs and consumer finance, while transactional deposits rose 10% year over year. However, client NII declined as lower funding income, portfolio sales, selective origination and a shift toward lower-spread, lower-risk clients pressured margins.
  • Asset quality remained under pressure, including approximately R$500 million in one-off wholesale provisions and continued deterioration in agribusiness, low-income borrowers and some middle-income unsecured loans. Management warned that persistently high rates could create additional pressure for SMEs and agribusiness.
  • Expense growth remained below inflation, improving the efficiency ratio to 38.8%, supported by product simplification, digitization and greater use of digital sales channels.
  • Management expects better NII conditions in 2027 and is targeting sustainable profitability recovery through higher customer primacy, secured and transaction-linked lending, and more capital allocation to high-net-worth clients and large corporates. The bank also continues to scale Santander Rewards, which has reached about 700,000 clients and is driving higher spending and investment activity.

Banco Santander Brasil Price Performance

BSBR stock traded down $0.27 during midday trading on Wednesday, hitting $4.58. The stock had a trading volume of 4,195,573 shares, compared to its average volume of 2,193,794. The company has a debt-to-equity ratio of 3.34, a current ratio of 1.56 and a quick ratio of 1.56. Banco Santander Brasil has a 1-year low of $4.58 and a 1-year high of $7.32. The business has a fifty day moving average price of $5.71 and a two-hundred day moving average price of $5.85.

Banco Santander Brasil Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Thursday, October 22nd will be paid a dividend of $0.0804 per share. This is a drop from Banco Santander Brasil’s previous quarterly dividend of $0.1045. This represents a $0.32 dividend on an annualized basis and a yield of 7.0%. The ex-dividend date of this dividend is Thursday, October 22nd.

Insider Activity

In other news, VP Edmilson Saes sold 50,000 shares of the business’s stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $5.79, for a total value of $289,500.00. Following the transaction, the vice president directly owned 300,203 shares of the company’s stock, valued at $1,738,175.37. The trade was a 14.28% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Cezar Augusto Janikian sold 6,600 shares of the company’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $5.72, for a total value of $37,752.00. Following the sale, the vice president owned 47,007 shares in the company, valued at approximately $268,880.04. The trade was a 12.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 233,438 shares of company stock worth $1,338,299. 0.06% of the stock is owned by insiders.

Analyst Ratings Changes

A number of research firms recently weighed in on BSBR. HSBC restated a “hold” rating and issued a $6.20 price objective (down from $7.20) on shares of Banco Santander Brasil in a report on Tuesday, September 15th. JPMorgan Chase & Co. lowered Banco Santander Brasil from an “overweight” rating to a “neutral” rating and reduced their price target for the company from $6.50 to $6.00 in a research report on Thursday, July 30th. Zacks Research upgraded Banco Santander Brasil from a “strong sell” rating to a “hold” rating in a research report on Tuesday, October 20th. UBS Group cut Banco Santander Brasil from a “buy” rating to a “neutral” rating in a research note on Monday, August 24th. Finally, Weiss Ratings downgraded Banco Santander Brasil from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday. Five investment analysts have rated the stock with a Hold rating. According to data from MarketBeat, Banco Santander Brasil presently has an average rating of “Hold” and a consensus price target of $6.10.

View Our Latest Analysis on BSBR

About Banco Santander Brasil

(Get Free Report)

Banco Santander (Brasil) SA is a Brazilian financial institution and a subsidiary of Spain-based Banco Santander. It provides banking and financial services to individuals, small and midsize businesses, corporate clients and institutional customers throughout Brazil.

The company’s offerings include checking and savings accounts, consumer and commercial loans, credit and debit cards, mortgages, payroll lending, insurance, investment products, foreign-exchange services, cash management and payment solutions.

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