Q2 2024 Banco Santander Brasil SA Earnings Call Transcript
Key Points
- Banco Santander (Brasil) SA (BSBR) reported a 10% quarter-on-quarter growth, reaching BRL3.3 billion, indicating consistent portfolio growth and results delivery.
- The company's profitability increased year-on-year to 15.5%, an improvement from the previous quarter's 14.1%, showcasing a positive trend in return on equity.
- Net interest income (NII) grew by 11% year-on-year, reflecting successful strategic execution in both client and market NII.
- The bank's loan portfolio grew by 8% year-on-year, with positive evolution across all segments, particularly in credit cards and payroll loans.
- Banco Santander (Brasil) SA (BSBR) achieved a record origination quarter in agribusiness, with a portfolio growth of almost 20% over two years, demonstrating strong performance in this sector.
- The bank experienced an increase in delinquency rates in the SME segment, particularly among very small companies, which could pose a risk to future performance.
- Market NII saw a reduction in the quarter due to lower results in treasury operations, attributed to market volatility.
- Despite overall growth, the bank's ALL (Allowance for Loan Losses) remains stable at almost BRL6 billion, indicating ongoing challenges in managing credit risk.
- The company's focus on reducing renegotiated portfolios may impact short-term NII, as these portfolios are being de-risked.
- The bank's strategic shift towards a more balanced credit mix may result in lower nominal spreads, potentially affecting short-term profitability.
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[Interpreted]
Good morning, everyone, and thank you for joining us today during our conference call for the results of 2024, the first quarter. We are here in our headquarters in São Paulo and we'll be dividing this event into three parts.
First, our CEO, Mario Leão, will talk about the main highlights of the period and the strategies by which we will continue to drive our growth in the coming quarters. Next, our CFO, Gustavo Alejo, will provide a detailed analysis of our performance. And finally, there will be a Q&A session.
(Event Instructions)
Today's presentation that is available for download on our IR website.
Now, I hand over to Mario to start the presentation.
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Good morning, everyone. Well, it's 10:00 o'clock sharp and we are live.
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