Banco Santander (Brasil) (SANB4) Q3 2025 earnings summary

Executive summary

• Net profit reached R$4.0 billion in Q3 2025, up 10% quarter-on-quarter and year-on-year, with ROAE at 17.5%, reflecting strong profitability and a return to this level after over three years.

• Customer base expanded to 73 million (+7% YoY), with record NPS scores for individuals (61) and companies (52), and active customers at 33.7 million (+4% YoY).

• Strategic focus on digital transformation, hyper-personalization, and AI-driven customer journeys, including the rollout of a new global One App and Pix via credit card.

• Consumer finance and SME segments showed double-digit annual growth, with consumer finance driving fee and insurance growth and leadership in auto loans.

• Efficiency gains and disciplined cost control supported by technology investments and modernization.

Financial highlights

• Net profit: R$4.0 billion, up 10% QoQ and YoY; net interest income (NII) at R$15.2 billion, with client NII up 2.7% QoQ and 11.1% YoY, while market NII declined.

• Fee income up 6.7% QoQ and 4.1% YoY, led by cards, insurance, and brokerage.

• Expenses nearly flat QoQ (+0.2%) and down 0.5% YoY, reflecting strong cost control.

• Efficiency ratio at 37.5%, improved by 140 bps YoY.

• CET1 ratio at 11.7%, BIS ratio at 15.2%.

Outlook and guidance

• Continued disciplined capital allocation, focusing on profitable sub-segments, risk-adjusted returns, and portfolio resilience.

• Expectation to maintain expense growth at or below inflation, aiming for near-zero nominal expense growth.

• Ongoing de-risking of legacy portfolios, with cost of risk expected to decline as new vintages become more relevant.

• Targeting a long-term efficiency ratio of 30% and a return to 20% profitability.

• Market NII expected to stabilize as hedging strategy matures by 2026.