Banco Santander Brasil (BSBRN) Q3 2026 Earnings Report

The call was mixed but constructive. Santander reported solid client growth, targeted loan expansion, stronger transactional deposits, expense growth well below inflation, improved efficiency, and better performance in newer credit cohorts. However, recurring net income and ROE remain below target, client and market NII were under pressure, wholesale one-off provisions affected the quarter, and asset-quality challenges persisted in agribusiness and retail segments. Management's outlook for 2027 was more positive, but the near-term macroeconomic and credit environment remains challenging.

Management said its expectation is that “things will improve in 2027,” with a “more positive” outlook for market NII, although there will be a “negative result in the agribusiness portfolio” that will be “better than what we had in 2026”; the hedged result is expected to be “significantly less than the loss that we posted in the first 9 months.” Management is “very optimistic in terms of NII growth in 2027,” but said, “I do not want to share any numbers.” The bank intends to grow in SMEs through transaction-linked credit and services-linked credit, with about 25% of the portfolio supported by Pronampe and FGO, depending on the environment and interest rates; changes in write-offs are expected to “normalize throughout 2027,” including secured consumer finance terms of “18 increasing to 21 months” and a mortgage exception of “455 days” versus “360 days” for the whole portfolio.