Banco Santander Brasil (NYSE:BSBR) Announces Quarterly Earnings Results, Misses Estimates By $0.12 EPS

Banco Santander Brasil (NYSE:BSBR) issued its quarterly earnings data on Wednesday. The bank reported $0.08 EPS for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.12), FiscalAI reports. The business had revenue of $3.59 billion during the quarter, compared to the consensus estimate of $4.17 billion. Banco Santander Brasil had a return on equity of 10.49% and a net margin of 7.06%.

Here are the key takeaways from Banco Santander Brasil’s conference call:

• Recurring net income was BRL 3 billion and ROAE was 12.5%, with profitability pressured by weaker revenue growth and a higher cost of risk in a challenging macroeconomic environment.
• Santander is accelerating its portfolio de-risking, reducing exposure to lower-income individual customers while prioritizing secured lending, higher-quality vehicles, mortgages, government-backed loans, and larger corporate customers. This is weighing on near-term spreads and fees but is intended to improve long-term risk-adjusted returns.
• Loan-loss provisions were affected by approximately BRL 700 million in wholesale cases and a new write-off methodology, while pressure continues in low-income individuals, smaller companies, and agribusiness. Management also expects a potentially more adverse macroeconomic scenario to affect provisions in coming quarters.
• Customer engagement and funding trends remained strong, with the customer base up 6% year over year to 76.2 million, transactional deposits up 18%, and early Santander Rewards cohorts showing higher engagement and card spending.
• Expenses remained under control, growing below inflation, while AI adoption and broader global platforms are expected to improve operating leverage. Management reaffirmed its 50% payout policy and expects ROE to return to more reasonable levels by 2027, supported by lower provisions, non-credit revenue growth, and efficiency gains.

Banco Santander Brasil Stock Down 7.2%

NYSE:BSBR traded down $0.40 during mid-day trading on Wednesday, reaching $5.08. 1,763,146 shares of the stock were exchanged, compared to its average volume of 1,199,721. The company has a 50 day simple moving average of $5.33 and a 200-day simple moving average of $5.91. Banco Santander Brasil has a 1 year low of $4.62 and a 1 year high of $7.32. The company has a current ratio of 1.29, a quick ratio of 1.29 and a debt-to-equity ratio of 3.25.

Banco Santander Brasil Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, August 17th. Investors of record on Thursday, July 30th will be given a $0.1045 dividend. The ex-dividend date of this dividend is Thursday, July 30th. This represents a $0.42 dividend on an annualized basis and a yield of 8.2%.

Insider Buying and Selling

In related news, CEO Mario Roberto Opice Leao bought 276,851 shares of the company’s stock in a transaction on Tuesday, June 16th. The stock was bought at an average cost of $5.38 per share, with a total value of $1,489,458.38. Following the completion of the acquisition, the chief executive officer owned 536,751 shares in the company, valued at approximately $2,887,720.38. This represents a 106.52% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Eduardo Alvarez Garrido sold 7,500 shares of the company’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $5.43, for a total transaction of $40,725.00. Following the completion of the sale, the insider directly owned 24,701 shares in the company, valued at $134,126.43. This trade represents a 23.29% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders bought 500,251 shares of company stock worth $2,651,888. Corporate insiders own 0.06% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Arrowstreet Capital Limited Partnership grew its position in Banco Santander Brasil by 17.0% during the third quarter. Arrowstreet Capital Limited Partnership now owns 2,957,288 shares of the bank’s stock valued at $16,531,000 after acquiring an additional 430,531 shares during the period. Empowered Funds LLC purchased a new position in Banco Santander Brasil in the fourth quarter valued at approximately $9,772,000. Alliancebernstein L.P. grew its stake in Banco Santander Brasil by 99.6% during the third quarter. Alliancebernstein L.P. now owns 327,261 shares of the bank’s stock worth $1,829,000 after buying an additional 163,314 shares during the period. Millennium Management LLC increased its position in shares of Banco Santander Brasil by 2,671.0% in the third quarter. Millennium Management LLC now owns 326,451 shares of the bank’s stock worth $1,825,000 after acquiring an additional 314,670 shares in the last quarter. Finally, Bank of America Corp DE raised its stake in shares of Banco Santander Brasil by 8.4% in the 3rd quarter. Bank of America Corp DE now owns 316,047 shares of the bank’s stock valued at $1,767,000 after acquiring an additional 24,404 shares during the period. Institutional investors and hedge funds own 14.53% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. JPMorgan Chase & Co. decreased their price objective on Banco Santander Brasil from $7.00 to $6.50 and set an “overweight” rating for the company in a research note on Tuesday, July 7th. Weiss Ratings lowered shares of Banco Santander Brasil from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, June 29th. Zacks Research downgraded shares of Banco Santander Brasil from a “hold” rating to a “strong sell” rating in a report on Friday, July 3rd. Finally, Wall Street Zen cut shares of Banco Santander Brasil from a “buy” rating to a “hold” rating in a research report on Sunday, July 12th. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, Banco Santander Brasil has an average rating of “Reduce” and a consensus price target of $6.50.

About Banco Santander Brasil

Banco Santander Brasil SA is the Brazilian unit of Spain-based Grupo Santander and one of the country’s major commercial banks. Headquartered in São Paulo, the bank serves a broad client base across Brazil through an integrated network of branches, ATMs and digital channels. Its shares are represented abroad via American Depositary Shares listed on the New York Stock Exchange under the ticker BSBR.

The bank offers a full range of financial products and services for retail, small and medium-sized enterprises, and corporate clients.