Banco Santander Brasil 2Q26 Profit Drops 20% as Loan-Loss Provisions Surge
BSBR is trading near its 52-week low of $4.62 (10% above the low).
Summary
Banco Santander Brasil reported a 20% drop in recurring net profit for 2Q26 as loan-loss provisions surged, overshadowing modest loan growth and stable fee income.
Key Events · Earnings and Guidance · BSBR
-
Profit Miss on Surging Provisions
Recurring managerial net profit fell 20.4% QoQ to R$3.0 billion, driven by a 21.0% jump in loan-loss provisions to R$8.26 billion. Cost of risk rose to 3.81%.
-
Revenue Pressure
Total revenues declined 2.7% QoQ to R$20.7 billion, with net interest income down 3.0% on tighter spreads and lower exposure to mass-market lending.
-
Asset Quality Deterioration
Over-90-day NPL ratio rose to 3.3% (up 0.7 p.p. YoY), with stress concentrated in lower-income individuals and agribusiness. Write-offs surged 27.3% QoQ.
-
Loan Growth Offset by Mix Shift
Expanded loan portfolio grew 1.3% QoQ to R$714.8 billion, led by consumer finance and SMEs, but the bank continued reducing exposure to the mass-market segment.
Analysis · BSBR · Finance
Recurring net profit fell sharply to R$3.0 billion, missing expectations as provisions for bad loans jumped 21% from the prior quarter. The bank is navigating a tough credit cycle in Brazil, with rising delinquencies in lower-income and agribusiness segments. While the loan book and funding base grew modestly, the spike in credit costs and a 2.7% revenue decline signal near-term earnings pressure. Capital ratios remain solid, but the earnings miss and deteriorating asset quality are likely to weigh on the stock.
How filings like this one have moved
In the 30 days to Oct 5, 2026, 36.9% of the 964 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.65%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, BSBR was trading at $5.10 on NYSE in the Finance sector, with a market capitalization of approximately $20.1B. The 52-week trading range was $4.62 to $7.32. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.