Banco Santander (Brasil) (SANB4) Q4 2024 earnings summary

Executive summary

• Net profit reached R$3.9 billion in 4Q24, up 5.2% sequentially and 74.9% year-over-year, with ROAE at 17.6%, reflecting strong profitability, disciplined capital allocation, and digital transformation.

• Full-year net income was R$13.9 billion in 2024, up 48% year-over-year, driven by higher net interest income, controlled NPL ratios, and advances in digitalization and client primacy.

• Customer base expanded 8% YoY to 69.5 million, with a 15% increase in primacy customers and a focus on high-quality, active relationships.

• The year marked the consolidation of a transformation strategy, with advances in technology, hyper-personalization, and portfolio diversification.

• Efficiency ratio improved to 38.0% in 4Q24, a 5.0 p.p. YoY reduction, reflecting effective cost management and productivity gains.

Financial highlights

• Net interest income rose to R$16.0 billion in 4Q24 (+4.9% QoQ, +16.0% YoY), with client NII up 13.7% YoY, driven by asset and liability management.

• Fee income reached R$5.5 billion in 4Q24 (+3.4% QoQ, +10.1% YoY), led by cards, current accounts, and consórcios.

• Total revenues reached R$21.49 billion in 4Q24, up 4.5% sequentially and 14.4% year-over-year.

• Allowance for loan losses was R$5.9 billion in 4Q24, up 0.8% QoQ but down 13.2% YoY, with recurring cost of risk at 3.5%.

• Consolidated assets totaled R$1.32 trillion at year-end 2024, up from R$1.14 trillion in 2023.

Outlook and guidance

• Growth agenda remains focused on sustainable, profitable expansion, with continued investment in technology, digitalization, and hyper-personalization.

• Management anticipates a more challenging macroeconomic environment in 2025, with ongoing adjustments to credit and risk policies and regulatory changes (e.g., IFRS 9, CMN Resolution 4,966/2021).

• ROE/ROAE target remains at 20% in the medium term, with ongoing focus on efficiency and cost-to-serve reductions.

• Selic rate expected to reach 15.50% by June 2025, with inflation projected at 5.5%.

• GDP growth for Brazil projected at 3.5% for 2024.