Banco Santander (Brasil) (SANB4) Q1 2025 earnings summary

Executive summary

• Net profit reached R$3.9 billion in 1Q25, up 27.8% year-over-year and stable sequentially, with ROAE at 17.4% (+3.3 p.p. YoY), reflecting strategic improvements, cost control, and digital transformation.

• Customer base expanded to 70.7 million, with 33.2 million active customers and record-high NPS, driven by digitalization and hyper-personalized offerings.

• Strategic focus on digitalization, efficiency, and diversification, including the rollout of OneApp and advancements in payment solutions.

• Maintained leadership in consumer finance and electric vehicle lending, with strong growth in SME and Select segments.

• Operations remained resilient and profitable despite challenging macroeconomic and regulatory conditions.

Financial highlights

• Net interest income was R$15.9 billion (+7.7% YoY, -0.4% QoQ); total revenues reached R$21.1 billion (+7.0% YoY, -2.0% QoQ).

• Fee income totaled R$5.1 billion (+5.1% YoY, -6.9% QoQ); allowance for loan losses was R$6.4 billion (+5.7% YoY).

• Expenses were R$6.6 billion (+4.4% YoY, -2.9% QoQ), with efficiency ratio at 37.2%, the best in three years.

• Expanded loan portfolio reached R$682.3 billion (+4.3% YoY); funding balance at R$651.5 billion (+4.5% YoY).

• NPL ratio over 90 days was 3.3% (+0.2 p.p. YoY); cost of risk at 3.7%, stable YoY.

Outlook and guidance

• Commitment to sustainable ROAE evolution and disciplined capital allocation, targeting at least 20% ROAE in the medium term.

• Continued focus on customer experience, digital transformation, and expanding funding from individuals.

• Cautious approach to portfolio growth amid macroeconomic and regulatory uncertainty, with marginal adjustments in risk appetite.