BSBR - Santander Brasil Q4: A Buy Despite Recent Setbacks
2024-02-02 16:15:59 ET
Summary
- Santander Brasil's Q4 earnings fell short of market expectations, with a miss of R$ 650 million.
- However, this miss is largely driven by a one-timer and it masks the positive performance in Net Interest Margin.
- Santander Select has hit its milestone of 1 million customers and delinquencies in the 15 to 90 days period are already trending down.
- Sustained Net Interest Income growth YoY and QoQ coupled with lower interest rates make Santander Brasil a Buy.
Two quarters have passed since I first covered Sa ntander Brasil ( BSBR ) with a Buy rating. Those have been disappointing six months. The stock briefly touched above $6.5 at the end of FY'23, but started to slide down again once FY'24 started and have dipped even lower after the release of Q4 earnings. Note that Santander trades slightly above the price of my first article in BRL terms, meaning that excluding FX and including dividends it would likely be in line with the S&P 500. Although I may have been early on my Buy call, I still believe I'm right with my expectations, as we are still in the early days of Brazil's economic cycle....
Santander Brasil Q4: A Buy Despite Recent Setbacks