Santander Brasil sees profit fall 28% and promises to recover profitability

Santander Brasil now faces the challenge of recovering profitability after a 28% drop in profit. According to Revista Oeste, the 3rd quarter result was below the target, and the institution needs to reverse this situation.

The matter came to light on Wednesday, the 28th, when Gilson Finkelsztain, executive president of Santander Brasil, spoke about the numbers. According to the report, he stated that the bank will work to recover profitability and pointed to high interest rates as the main challenge in the macroeconomic scenario.

In a video conference with analysts, Finkelsztain said that the institution has already migrated to a better quality client portfolio. According to him, the goal is to seek a more balanced relationship between risk, return and use of capital, and portfolio change remains a central part of the strategy.

In general terms, when interest rates are high, credit becomes more expensive for borrowers and the risk of default weighs more heavily on banks' results. This helps to understand why the executive places so much emphasis on portfolio quality, rather than just volume growth.

The information collected does not detail the size of the portfolio change or the deadlines for recovery of profitability. These points remain open and must be observed in the next results.

What changes for the investor

For those who follow the sector, the central point is the bank's ability to transform selectivity into profit without losing space in the market. If the strategy advances, profitability tends to depend less on the volume of operations and more on the quality of credit granted, an aspect that is usually closely monitored in high interest rates scenarios. For now, what is at stake is the confirmation of these numbers in the next results, and not a prediction for the share price.

Automatically translated from Portuguese.