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 fee income gains.
Key Events · Earnings and Guidance · BSBR
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Recurring Net Profit Down 20%
Recurring net profit fell to R$3.014 billion in 2Q26, a 20.4% decline from 1Q26 and 17.6% lower than 2Q25, driven by higher provisions.
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Loan-Loss Provisions Surge
Result from loan losses jumped 20.6% QoQ to R$7.654 billion, pushing the cost of risk to 3.81% from 3.73% in 1Q26.
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Net Interest Income Contracts
Net interest income fell 3.0% QoQ to R$15.341 billion, with client NII down 0.4% and product NII down 2.3%.
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Capital Ratio Strengthens
BIS ratio improved to 15.3%, up 0.2 p.p. from 1Q26 and 4.3 p.p. from 2Q25, providing a buffer against rising credit costs.
Analysis · BSBR · Finance
Recurring net profit fell sharply to R$3.0 billion, driven by a 20.6% jump in loan-loss provisions to R$7.7 billion. The cost of risk climbed to 3.81%, reflecting deteriorating asset quality. While the loan book grew modestly and fees edged higher, the bottom line was hammered by credit costs. The BIS ratio improved to 15.3%, providing a capital cushion, but the earnings miss and rising risk signal near-term pressure on profitability.
At the time of this filing, BSBR was trading at $5.09 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.