Banco Santander (Brasil) (SANB4) Q3 2024 earnings summary

Executive summary

• Net profit reached R$3.7 billion in 3Q24, up 34.3% year-over-year and 10% quarter-on-quarter, with ROAE at 17.0%, reflecting disciplined capital allocation, profitability focus, and improved digital engagement.

• Customer base grew 6% YoY to 68.3 million, with 11% YoY growth in customers with primacy, and strategic focus on technology, customer centrality, and hyper-personalized experiences.

• Growth in transactionality, loans, and investments fueled profitability recovery and diversified revenue streams.

• Expansion prioritized strategic businesses, with disciplined capital allocation and focus on ROE evolution.

Financial highlights

• Net interest income was R$15.2 billion in 3Q24 (+3.2% QoQ, +15.8% YoY), outpacing portfolio growth, with gains across funding, client, and market NII.

• Fee income reached R$5.3 billion (+2.9% QoQ, +13.3% YoY), led by cards and asset management.

• Allowance for loan losses was R$5.9 billion in 3Q24, up 4.7% YoY but stable QoQ, with cost of risk at 3.7%, down 0.6 p.p. YoY.

• Efficiency ratio improved to 38.9% in 3Q24, down 3.6 p.p. YoY.

• Funding balance was R$641.3 billion (+4.9% YoY), with improved retail share and focus on funding mix optimization.

Outlook and guidance

• Management expects continued disciplined capital allocation, focusing on profitable and cross-sellable portfolios, with selective growth in auto loans and SMEs, and a more cautious approach in less profitable segments.

• No formal guidance provided, but mid-single digit loan book growth is anticipated, with no expansion in credit appetite.

• ROE improvement will be driven by fee growth, funding mix optimization, pricing discipline, and cost control, leveraging technology for value creation.

• Commitment to consistent profitability and supporting a more inclusive, sustainable economy.