Banco Santander Q1: Good, But Still Not Enough Again

2025-05-08 21:39:21 ET

Summary

• Santander Brasil's loan portfolio showed modest annual growth and a slight quarterly decline, reflecting a cautious, selective strategy amid high-interest rates.
• Non-Performing Loans increased slightly, with short-term NPLs rising 40 bps q/q and 30 bps y/y, particularly impacting individuals and SMEs.
• Net Interest Income grew by 0.3% q/q and 9.5% y/y to BRL 15.8 billion, driven by higher spreads and average volume.
• The outlook remains cautious, with limited improvement expected in NII and NPLs, contingent on future interest rate cuts and economic conditions.

Investment Thesis

I recommend holding Santander Brasil ( BSBR ) shares after the release of its Q1 2025 results. This article is a continuation of my initial coverage article published on May 6, 2024, with a sell recommendation at the time....

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