Santander Brasil, a key market for its Spanish parent Banco Santander, reported a 17.6% decline in its second-quarter net profit to 3.01 billion reais ($586.86 million), below the 3.9 billion reais expected by analysts polled by LSEG.
Financial Performance
The bank’s net interest income fell 0.4% to 15.34 billion reais due to tighter spreads in the period. Provisions for loan losses rose 6.5% year-on-year to 8.26 billion reais. The bank attributed this performance to one-off effects from additional provisions for wholesale cases and the review of write-off criteria, as well as a challenging credit environment.
The return on average equity (ROAE), a gauge of profitability, stood at 12.5%, down from 16.4% a year earlier.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
