Santander Brazil Reports 6% Profit Increase in Fourth Quarter of 2025

Santander Brazil Achieves Profit Growth in Q4 2025

Santander Brazil has reported a 6% increase in its recurring net profit for the fourth quarter of 2025, reaching R$ 4.086 billion (approximately $0.757 billion). This performance indicates a steady recovery path for the financial institution, a subsidiary of Spain's Banco Santander. The results were broadly in line with market expectations and slightly higher than the previous quarter.

Key Financial Highlights

The bank's financial statements for the October-December quarter of 2025 revealed several key metrics:

• Recurring Net Profit: R$ 4.086 billion, marking a 6.0% increase from the same period a year earlier.
• Full-Year 2025 Recurring Net Profit: Reached R$ 15.595 billion (approximately $2.888 billion), representing a 12.6% increase.
• Return on Average Equity (ROAE): Stood at 17.6% for the quarter, remaining essentially stable.
• Client Net Interest Income (NII): Rose by 6.6% to R$ 16.818 billion (approximately $3.114 billion), reflecting healthier spreads and/or volumes in the bank's core lending and deposit activities.
• Total Net Interest Income (NII): Experienced a 4.0% year-over-year decrease, totaling R$ 15.332 billion (approximately $2.839 billion).
• Fee Income: Increased by 4.3% to R$ 5.754 billion (approximately $1.066 billion), providing a cushion against the weaker total NII.

Driving Factors and Market Context

The profit growth was primarily driven by an improved client franchise and consistent growth in client net interest income. Santander Brazil expanded its customer base to 64 million clients, contributing to the positive revenue performance. The bank's Chief Executive, Mario Leao, has previously highlighted the 'diversification of our portfolio' as a key factor in their earnings strategy. Despite a challenging market landscape characterized by high interest rates in Brazil, the bank demonstrated resilience.

Risk Management and Outlook

In terms of risk, Santander Brazil showed gradual improvement, with the cost of risk at 3.76%, slightly lower than the prior quarter. However, delinquency indicators remained elevated, with non-performing loans at 4.0% in the 15–90 day bucket and 3.7% at 90+ days. The bank continues to prioritize disciplined capital allocation and a focus on risk-adjusted returns. The results position Santander Brazil as a bellwether for other major private lenders in the country, including Itau Unibanco and Bradesco.