Business Context and Reporting Period
Company: Banco Santander (Brasil) S.A.
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Second Quarter 2026 (Ended June 30, 2026)
Accounting Basis: BRGAAP (Brazilian Generally Accepted Accounting Principles)
The bank reported continued progress in diversifying its business model and maintaining discipline in balance sheet and risk management amidst a challenging credit environment. Strategic growth was observed in Consumer Finance and SME portfolios, while exposure to the mass-market segment was reduced.
Key Financial Metrics
| Metric | 2Q 2026 | 1Q 2026 | 2Q 2025 |
|---|---|---|---|
| Recurring Managerial Net Profit | R$ 3.01 billion | R$ 3.79 billion | R$ 3.66 billion |
| Total Revenues | R$ 20.68 billion | R$ 21.25 billion | R$ 20.60 billion |
| Net Interest Income (NII) | R$ 15.34 billion | R$ 15.81 billion | R$ 15.40 billion |
| Fees | R$ 5.33 billion | R$ 5.44 billion | R$ 5.20 billion |
| Result from Loan Losses | R$ 7.65 billion | R$ 6.34 billion | R$ 6.86 billion |
| General Expenses | R$ 6.58 billion | R$ 6.63 billion | R$ 6.41 billion |
| Cost of Risk (12M Annualized) | 3.81% | 3.73% | 3.90% |
| Efficiency Ratio | 39.3% | 37.7% | 36.8% |
| Recurring ROAE (Annualized) | 12.5% | 16.0% | 16.4% |
| Expanded Loan Portfolio | R$ 714.77 billion | R$ 705.58 billion | R$ 675.52 billion |
| Funding from Clients | R$ 688.51 billion | R$ 663.85 billion | R$ 643.83 billion |
| Equity | R$ 98.21 billion | R$ 97.52 billion | R$ 92.46 billion |
| BIS Ratio | 15.3% | 15.2% | 15.0% |
| CET1 Ratio | 11.2% | 11.2% | 11.6% |
Material Changes vs. Prior Periods
- Profitability Decline: Recurring managerial net profit fell 20.4% quarter-over-quarter (QoQ) and 17.6% year-over-year (YoY). The decline was driven by higher loan loss provisions and spread compression in the mass-market segment.
- Loan Loss Provisions: The result from loan losses increased 20.6% QoQ and 11.5% YoY. This was attributed to a challenging credit environment, one-off provisions for wholesale cases, and a review of write-off criteria.
- Revenue Mix: Total revenues were flat YoY (+0.4%) but declined 2.7% QoQ. Net interest income dropped 3.0% QoQ due to a mix effect (lower exposure to mass-market) and tighter spreads. Fees grew 2.5% YoY, driven by cards (+10.5%), consórcios (+23.8%), and insurance (+6.4%).
- Asset Quality: The NPL ratio (over 90 days) rose to 3.3% (up 0.7 p.p. YoY), influenced by higher write-offs in retail portfolios due to revised recoverability criteria. The 15-to-90-day NPL ratio remained stable at 3.3%.
- Balance Sheet Growth: The expanded loan portfolio grew 5.8% YoY, led by Consumer Finance (+15.3%) and SMEs (+11.5%). Funding from clients increased 6.9% YoY, with the Individuals segment now representing 51% of the funding mix.
Outlook, Risks, and Management Commentary
- Strategic Focus: Management emphasized a shift toward high-income segments and strategic businesses (Consumer Finance, SMEs) while reducing exposure to the mass-market segment to improve profitability and risk resilience.
- Customer Centricity: The bank reported a customer base of 76.2 million (up 6% YoY) and 34.4 million active customers. Strategy focuses on transactionality, credit, and investments to deepen primary relationships.
- Risk Environment: The credit environment remains challenging, characterized by high interest rates and elevated household indebtedness, particularly affecting the mass-income segment. Specific pressures were noted in agribusiness and lower-income card segments.
- Cost Management: General expenses were down 0.8% QoQ and up 2.6% YoY (below inflation), supported by workforce optimization and technology investments. The efficiency ratio increased to 39.3% due to revenue pressure.
- Capital Position: The bank maintained a solid capital position with a BIS ratio of 15.3% and CET1 ratio of 11.2%, well above regulatory requirements.
Key Facts for Investor Verification
- Profitability Trend: Verify the sustainability of the 17.6% YoY profit decline and the impact of the "mix effect" on future Net Interest Income.
- Asset Quality Deterioration: Monitor the over-90-day NPL ratio (3.3%) and the impact of revised write-off criteria on future provisioning levels.
- Cost of Risk: Assess the 12-month annualized cost of risk at 3.81% and its trajectory relative to the challenging macroeconomic environment.
- Portfolio Concentration: Confirm the reduction in mass-market exposure and the growth quality in Consumer Finance and SME segments.
- Dividend Policy: Note the distribution of Income on Capital (IoC) of R$ 2.0 billion in 2Q26, consistent with 1Q26 but higher than 2Q25 (R$ 1.5 billion).