Banco Santander (Brasil) S.A. Q3 2026 Earnings Recap

Santander Brazil’s shares fell 5.6% after earnings, as investors appear to have focused on weak profitability and a decline in client NII. Recurring net income was BRL 2.9 billion and ROE 11.9%, both below management’s target levels; management also cited high interest rates, household debt and roughly BRL 500 million in specific wholesale cases as pressures.

Key Takeaways

• Client NII declined during the quarter: lower average CDI, deferred banking-correspondent expenses, the consumer-finance portfolio sale and selective loan origination more than offset higher volume and an extra calendar-day effect.
• Management said recurring expenses were stable excluding one-off wholesale cases across the current and prior quarters; the current-quarter cases totaled approximately BRL 500 million.
• Loan growth varied by product: mortgages rose 10.3% year over year, SMEs 8.5% and consumer finance 9.1%, despite a portfolio sale.
• Transactional deposits grew 10% over 12 months, while the bank’s client base reached 76.9 million, up 6%.
• Fees had a more positive trend, with cards and insurance performing well; brokerage and securities placement declined sequentially as capital-markets activity slowed.