The following is a summary of the Banco Santander (Brasil) S.A. (BSBR) Q1 2024 Earnings Call Transcript:
Financial Performance:
Banco Santander (Brasil) S.A. reported a growth in its Net Interest Income (NII) by 14%.
A profit slightly above BRL3 billion was posted, indicating a quality turnaround in growth.
The Return on Equity (ROE) slightly exceeded its cost of equity.
A positive growth in net interest income (NII) of 14.5% compared to the previous year and 7.3% over the last quarter was reported.
The bank's loan portfolio grew by 5%, with emphasis on auto loans and SMEs.
Noted was a 10% growth in terms of liabilities over the past 12 months, mainly driven by time deposits and real estate LCI and agribusiness LCA credit notes.
Despite a slight contraction in quarterly fees due to seasonal factors, an overall year-on-year expansion of 12.8% was observed.
The net income for the bank was reported at BRL 3 billion, up 41% in 12 months with a year-on-year total revenue increase of 14%.
Business Progress:
Banco Santander is undergoing a major transformation that includes a redesigned store model and a unique service for Small and Medium Enterprises (SMEs).
Positive results in customer loyalty and satisfaction were observed via an increased Net Promoter Score (NPS) across all channels, products, and segments.
With a focus on mass retail, a repositioning strategy was launched to better communicate and establish relationships with clients.
Over 90% of their clients use their app, indicating an acceleration in their digital-first strategies.
The bank launched a comprehensive relaunch of its value proposition for a brand repositioning for mass retail with an aim of being more present in its client's lives.
There are projections of a consistent revenue growth for 2024 due to portfolio diversification, with strategies focused on gradually resuming business dynamics.
With an aim to improve customer relationships, a new positioning integrative of physical stores into its multi-channel approach was launched.
An improvement in cost of credit and business growth in select sectors is expected, aiming for a more profitable portfolio.
To maintain cost control, efforts in optimizing its footprint and cost-to-serve ratio will be maintained.
There is confidence in their redesigned strategies, particularly in the Select segment where growth is anticipated.
An improvement in the quality and mix of their portfolio and renegotiating written-off loans to reduce the renegotiated portfolio is expected.
Banco Santander Brazil expects to have a solid growth of 5% in portfolio year-over-year.
They are comfortable with the direction they are taking, focusing on quality portfolios and looking to accelerate focus on cards.
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