BSBR Latest Report

Performance Review

Santander (Brazil) achieved a significant increase in its operating income to US$18,898,686,000 as of September 30, 2024, up from US$16,397,950,000 as of September 30, 2023, representing a growth of approximately 15.27%. This growth reflects the bank's strong performance in the competitive market and successful business expansion.

Key Financial Data

1. Operating income in 2024 reached US$18,898,686,000, up 15.27% YoY, indicating strong market demand and business growth.

2. Interest income, net, increased by US$1,789,042,000 to US$13,994,632,000 from US$12,203,580,000 in 2023, showing an improvement in the bank's profitability.

3. Commission expenses rose from US$389,176,500 to US$4,458,961,000, although expenses increased, the growth rate of operating income was faster.

4. The possible launch of new financial products or services to attract more customers and drive operating income growth.

Peer Comparison

1. Industry-wide analysis: The overall operating income growth of Brazilian banks is mainly affected by economic recovery and interest rate policies. Many banks achieved revenue growth in 2024, reflecting the industry's recovery trend. The bank sector ranked first among the 31 sectors of the Shenzhen Stock Exchange with a 46.67% increase, driving the overall operating income up.

2. Peer evaluation analysis: Santander's operating income growth rate of 15.27% is in the middle and upper levels among peers. Compared with other large banks such as Banco Nacional de Desenvolvimento Econômico e Social (National Economic and Social Development Bank) and Itaú Unibanco, Santander has shown competitive advantages in retail banking and digital transformation.

Summary

Santander's operating income in the third quarter of 2024 grew significantly, mainly benefiting from the improvement in market demand, the increase in interest income, and effective cost control. These factors together contributed to its operating income growth and made it stand out in the Brazilian banking industry.

Opportunities

1. Continue to expand its market share, especially in retail banking and digital services.

2. Take advantage of favorable changes in interest rate policies to optimize product mix and enhance net interest margin.

3. Explore the development of new products and services to meet the changing needs of customers.

4. The overall industry recovery may attract more investor attention and enhance capital market performance.

Risks

1. Uncertainty in economic recovery may affect loan demand and, in turn, operating income.

2. Increased commission expenses may affect overall profitability and require careful cost control.

3. Intensified competition may squeeze interest income and the bank's market share.

4. Changes in interest rate policies may affect the bank's net interest margin and need to be monitored for policy dynamics.