By Brazil Stock Guide – Santander Brasil (B3: SANB11) reported recurring managerial net income of R$ 3.01 billion in the second quarter of 2026, down 17.6% from a year earlier and 20.4% from the previous quarter.
The result was weighed down by higher provisions for credit losses as elevated interest rates and household indebtedness continued to pressure borrowers. The bank also cited problems concentrated in selected corporate, agribusiness and lower-income consumer portfolios.
Net loan-loss provisions reached R$ 7.65 billion, up 20.6% from the first quarter and 11.5% from a year earlier. Santander said the increase also reflected additional provisions for specific wholesale exposures and a revision to the criteria used to write off loans.
Recurring return on average equity, or ROAE, fell to 12.5%, from 16% in the previous quarter and 16.4% a year earlier. Loans more than 90 days overdue were unchanged from March at 3.3%, but rose 0.7 percentage point from the same period of 2025.
Net interest income totaled R$ 15.34 billion, down 3% quarter on quarter and 0.4% year on year. The bank said lower exposure to mass-market customers compressed spreads, partly offsetting growth in average loan balances.
Santander’s expanded loan portfolio ended June at R$ 714.77 billion, up 5.8% from a year earlier and 1.3% from March, driven by consumer finance, large companies and small and medium-sized businesses. Customer funding rose 6.9% over 12 months to R$ 688.51 billion.
Operating expenses fell 0.8% from the previous quarter to R$ 6.58 billion, although the efficiency ratio deteriorated to 39.3% as revenues came under pressure. Santander ended June with 47,327 employees, 6,591 fewer than a year earlier.
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