Business Context and Reporting Period
Company: Banco Santander (Brasil) S.A.
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Fourth Quarter 2025 (ended December 31, 2025)
Accounting Standard: BRGAAP (Brazilian Generally Accepted Accounting Principles)
The bank reported its highest quarterly profit in four years, driven by disciplined capital allocation, selective asset growth, and a diversified funding mix. Strategic highlights include the integration of Toro Investimentos into Santander Corretora and the launch of the "OneApp" multi-bank solution.
Key Financial Metrics
| Metric | 4Q25 Value | QoQ Change | YoY Change |
|---|---|---|---|
| Managerial Net Profit | R$ 4.1 billion | +1.9% | +6.0% |
| Return on Average Equity (ROAE) | 17.6% | Stable | -0.1 p.p. |
| Total Revenue | R$ 21.1 billion | +1.6% | -1.9% |
| Net Interest Income (NII) | R$ 15.3 billion | +0.8% | -4.0% |
| Fees | R$ 5.8 billion | +3.6% | +4.3% |
| Cost of Risk | 3.76% | -0.1 p.p. | +0.3 p.p. |
| Efficiency Ratio | 38.8% | +1.4 p.p. | +0.8 p.p. |
| Expanded Loan Portfolio | R$ 708.2 billion | +2.8% | +3.7% |
| Customer Funding | R$ 670.4 billion | +1.7% | +3.9% |
| BIS Ratio | 15.4% | +0.2 p.p. | +1.1 p.p. |
| CET1 Ratio | 11.6% | -0.2 p.p. | +0.6 p.p. |
Material Changes vs. Prior Period
- Profitability: Net profit reached R$ 4.1 billion, the highest in four years, despite a 4.0% annual decline in Net Interest Income (NII) due to negative market NII results driven by interest rate sensitivity.
- Revenue Mix: Client NII grew 6.6% YoY, offsetting market NII losses. Fees increased 4.3% YoY, driven by cards, insurance, and asset management, though partially offset by regulatory reclassifications (CMN Resolution No. 4,966/21).
- Asset Quality: The over-90-day NPL ratio rose to 3.7% (up 0.5 p.p. YoY), pressured by the macroeconomic environment, particularly in lower-income individual segments and SMEs. However, NPL formation improved quarterly.
- Cost Management: General expenses declined 2.0% YoY (real terms -2.6%) due to footprint optimization, though they rose 3.3% QoQ due to seasonality and technology investments.
- Capital: The BIS ratio improved to 15.4%, supported by quarterly profits and Tier II capital issuance.
Guidance, Outlook, and Risks
- Strategic Outlook: Management reaffirmed a path of consistent ROAE evolution with a focus on disciplined capital allocation. The bank aims to be the leading financial platform in customers' lives through hyper-personalization and technology.
- Key Initiatives:
- Transactionality: Continued focus on cards and payments, including the unification of transfers and payments.
- Investments: Integration of Toro Investimentos into Santander Corretora to expand the investment ecosystem.
- Customer Base: Expanded to 73.9 million clients (+6% YoY), with a focus on primary relationships.
- Risks and Contingencies:
- Macroeconomic Pressure: Asset quality remains pressured by high interest rates and elevated household indebtedness.
- Regulatory Impact: CMN Resolution No. 4,966/21 continues to impact fee recognition and provisioning methodologies.
- Market NII: Ongoing losses in market NII due to interest rate sensitivity and treasury results.
Investor Verification Checklist
- Regulatory Reclassifications: Verify the specific impact of CMN Resolution No. 4,966/21 on fee recognition and cost of risk comparability.
- Asset Quality Trends: Monitor the over-90-day NPL ratio, specifically in the lower-income individual and SME segments, given the macroeconomic headwinds.
- Market NII Volatility: Assess the sustainability of Client NII growth in offsetting continued losses in Market NII.
- Capital Adequacy: Confirm the trajectory of the CET1 ratio, which dipped slightly QoQ despite strong profitability.
- Dividend Policy: Review the approved distribution of Interim Ordinary Dividends (IoC) totaling R$ 2.62 billion for the period.