Santander Brasil(US:BSBR)2025-08-04 15:32Financial Performance - Net interest income for the first half of 2025 was $29,760,587, up 9.2% from $27,254,619 in the same period of 2024[16]. - The net profit for the period was $5,139,516 for the first half of 2025, a decrease of 23.1% compared to $6,694,354 in the first half of 2024[16]. - The company reported a total income of $38,156,236 for the first half of 2025, an increase of 5.9% from $36,022,814 in the same period of 2024[16]. - Profit for the period decreased to $1,987,932 thousand in Q2 2025 from $3,633,428 thousand in Q2 2024, representing a decline of 45.3%[17]. - Total comprehensive income increased to $2,854,647 thousand in Q2 2025 compared to $2,249,771 thousand in Q2 2024, reflecting a growth of 27%[17]. - Attributable profit to the parent company was $2,794,781 thousand in Q2 2025, down from $3,167,318 thousand in Q2 2024, a decrease of 11.8%[17]. - The company reported a net profit attributable to the parent company of $6,669,525 thousand for the period ending June 30, 2024[18]. - The company recorded a total comprehensive income of $5,561,127 thousand for the year ending June 30, 2024, compared to $7,089,136 thousand for the year ending June 30, 2025[17]. - The net profit for the six-month period ending June 30, 2025, was R$6,604,796 thousand, a decrease from R$9,688,391 thousand for the same period in 2024[171]. Assets and Liabilities - Total assets increased to $1,240,333,567 as of June 30, 2025, compared to $1,238,796,810 at the end of 2024, reflecting a growth of approximately 0.12%[14][15]. - Financial liabilities measured at amortized cost totaled $991,712,075 as of June 30, 2025, a slight decrease from $1,001,581,240 at the end of 2024[15]. - The total stockholders' equity increased to $127,029,138 as of June 30, 2025, compared to $126,199,224 at the end of 2024, reflecting a growth of approximately 0.65%[15]. - Total financial assets amounted to R$1,097,408,964, an increase from R$1,091,405,210 on December 31, 2024[68]. - As of June 30, 2025, total financial liabilities amount to R$1,079,240,080, an increase from R$1,084,303,850 on December 31, 2024[104]. - Customer deposits decreased to $587,219,451 as of June 30, 2025, down from $605,068,163 at the end of 2024, representing a decline of approximately 2.4%[15]. - Loans and advances to customers, net, were R$535,401,557 as of June 30, 2025, compared to R$566,089,914 on December 31, 2024[68]. - The provision for losses on financial assets increased to R$38,348,183 as of June 30, 2025, from R$36,118,338 a year earlier[73]. Income and Expenses - The company reported an increase in fee and commission income to $12,191,458 for the first half of 2025, compared to $11,591,889 in the same period of 2024, marking a growth of 5.2%[16]. - Personnel expenses for the six-month period ending June 30, 2025, totaled R$5,948,149 thousand, compared to R$5,787,631 thousand for the same period in 2024, reflecting an increase of approximately 2.8%[174]. - The total administrative expenses for the six-month period ending June 30, 2025, were R$4,530,394 thousand, an increase from R$4,212,338 thousand in the same period of 2024[175]. - Total income taxes for the six-month period were R$4,460,617 thousand, with current taxes amounting to R$4,460,617 thousand and deferred taxes of R$2,995,337 thousand[171]. Impairment and Losses - Impairment losses on financial assets (net) rose to $17,388,158 in the first half of 2025, compared to $14,310,995 in the same period of 2024, indicating a 21.5% increase[16]. - The company experienced a loss on financial assets (net) of $17,388,158, compared to $14,310,995 in the previous year, indicating ongoing challenges in asset management[21]. - Non-recoverable assets classified as loans and advances increased to R$43,739,888 as of June 30, 2025, from R$40,202,167 in the previous year[77]. - The total balance of allowance for impairment losses, including provisions for contingent liabilities, was R$38,802,953 as of June 30, 2025[73]. Strategic Initiatives and Changes - Banco Santander's new strategy for managing its ALCO portfolio focuses on a long-term investment profile to enhance financial stability and reduce equity volatility[46]. - The bank adopted Amortized Cost (AC) accounting classification for part of its ALCO portfolio, aligning with its business model strategy[47]. - Amendments to IFRS 9 and IFRS 7 will be effective from January 1, 2026, impacting the classification and measurement of financial instruments, with Santander currently assessing the changes[26]. - The adoption of new standards, including IFRS 18, will introduce new subtotals and categories for income and expenses, effective from January 1, 2027[28]. - Banco Santander is evaluating the impacts of several new accounting standards, including IFRS 19, which allows reduced disclosures for eligible subsidiaries, effective from January 1, 2027[30]. Shareholder and Capital Management - The company declared a total of R$3,000,000 thousand in Interest on Equity for the financial year 2025, with gross amounts of R$191.68 and R$210.84 per ordinary and preferred share respectively[158]. - Banco Santander's capital stock was increased by R$10 billion through capitalization of statutory profit reserves, approved on April 26, 2024[151]. - The authorized capital allows for the issuance of up to 9,090,909,090 shares, subject to legal limits on preferred shares[150]. - The company approved a new buyback program for up to 36,205,005 units, representing about 1% of the Bank's share capital as of December 31, 2024[168]. Investments and Acquisitions - Banco Santander sold its entire equity interest in Galgo Sistema de Informações S.A. on May 7, 2025, ceasing to hold any shares in the company[52]. - Santander Holding Imobiliária S.A. signed an agreement on February 24, 2025, to sell its entire stake in Summer Empreendimentos Ltda., pending regulatory approvals[53]. - The merger of Return Capital S.A. by Return Capital Gestão de Ativos e Participações S.A. was completed on September 30, 2024, resulting in an increase in share capital amounting to R$8,540,942,366.72[54][55]. - Banco Santander established a Joint Venture with the Pluxee Group, holding a 20% stake in Pluxee Benefícios Brasil S.A. after contributing R$2,044 million[58][60][61].