Santander Brasil's net profit down 28% in third quarter
SAN•Santander Brasil reported third-quarter net income of 2.89 billion reais, down 28% year on year, as loan-loss provisions rose 9.4% to 8.2 billion reais.
1. Profit declines
Banco Santander Brasil reported third-quarter net income of 2.89 billion reais ($540.02 million), a 28% year-on-year drop, as loan-loss provisions rose amid deteriorating macroeconomic conditions. Return on average equity fell 5.6 percentage points to 11.9%.
2. Credit and lending
Provisions for loan losses increased 9.4% from a year earlier to 8.2 billion reais. The expanded loan portfolio grew 4.7% year on year to 721 billion reais.
3. Brazil outlook
Brazil's central bank warned that banks faced weaker profits amid elevated credit risk and slower loan portfolio growth. Parent Banco Santander cited weakness in Brazil when it reported its results earlier in the day.
