Banco Santander (Brasil) (SANB4) Q2 2024 earnings summary

Executive summary

• Net profit reached R$3.3 billion in 2Q24, up 44.3% year-over-year and 10% sequentially, reflecting strong business momentum, strategic execution, and controlled asset quality.

• Consistent growth in net interest income (+11% YoY) and fees (+17.5% YoY), with a diversified portfolio and focus on customer primacy and digital transformation.

• Customer base with primacy among individuals grew 13% YoY, driving higher monetization and engagement.

• Strategic businesses such as Consumer Finance, SMEs, and Investments showed robust expansion and improved customer experience.

• Efficiency ratio improved to 39.3%, the lowest in 12 months, reflecting disciplined cost management.

Financial highlights

• Net interest income totaled R$14.8 billion in 2Q24, up 10.6% YoY, with client NII up 3% QoQ and 5% YoY.

• Fees reached R$5.2 billion, up 6.1% QoQ and 17.5% YoY, led by cards, insurance, and credit operations.

• Expanded loan portfolio reached R$665.6 billion, up 7.8% YoY, led by individuals, auto, payroll, and SMEs.

• Funding from clients totaled R$642.4 billion, up 10.3% YoY, with increased retail representativeness.

• Recurring cost of risk was 3.7%, down 0.8 p.p. YoY, with allowance for loan losses decreasing.

Outlook and guidance

• Focus remains on sustainable growth, digital transformation, and customer-centric strategies, leveraging technology and free offerings.

• Strategic business lines expected to continue expanding with high asset quality and customer satisfaction.

• Continued investment in technology, multichannel offerings, and expansion of strategic businesses.

• Ambition to double SME business and strengthen leadership in premium and mass market segments.

• The bank expects continued portfolio growth, stable funding, and positive margin outlook for the remainder of 2024.