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UPDATE 1-Santander Brasil beats forecasts but raises loan-loss provisions

UPDATE 1-Santander Brasil beats forecasts but raises loan-loss provisions

Reuters · 07/28/2022 03:42
UPDATE 1-Santander Brasil beats forecasts but raises loan-loss provisions

Adds loan-loss provisions, loan book, CFO quote

- Banco Santander Brasil SA's SANB11.SA second-quarter income beat market expectations but loan-loss provisions rose sharply from the previous quarter against a challenging macroeconomic backdrop.

Net profit rose 2% from the previous quarter to a better than expected 4.08 billion reais ($778.08 million), a securities filing showed.

Analysts polled by Refinitiv had forecast the Brazilian unit of Spain's Banco Santander SA SAN would post income of 3.88 billion reais.

However, Santander Brasil said that loan-loss provisions hit 5.75 billion reais, up 24.6% from the first quarter.

The lender's loan book rose 2.9% quarter on quarter to 465.54 billion reais.

"Despite a still-challenging macroeconomic environment, loan portfolio quality indicators were stable over the period," Santander Brasil finance chief Angel Santodomingo said in statement.

Brazil is the Spanish lender's largest customer base and accounts for almost a third of underlying group profit.


($1 = 5.2437 reais)


(Reporting by Gabriel Araujo
Editing by David Goodman)

((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))