On the eve of Mario Leão 's departure from the helm of Santander Brasil , the bank kicked off the earnings season for major financial institutions with lower-than-expected net profit and a drop in profitability.
The bank announced on Wednesday, April 29th, that its bottom line totaled R$ 3.8 billion in the first quarter, a 1.9% decrease compared to the same period in 2025 and a 7.3% decrease compared to the third quarter. This figure is lower than the average estimate collected by Bloomberg , which pointed to a profit of R$ 4.03 billion.
The return on average equity (ROAE) reached 16%, a decrease of 1.6 percentage points compared to the fourth quarter of 2025 and a decrease of 1.5 percentage points compared to the same quarter last year.
Despite the declines, Leão said that the performance is positive when looking at the operational side. He highlighted that net profit was affected by the increase in tax payments , in addition to the seasonality of the period.
Leão stated that the pre-tax result, which showed a profit of R$ 4.6 billion, a 5.4% increase on a quarterly basis but a 3.5% decrease compared to the same period of the previous year, better reflects the current state of the franchise, which is growing correctly and with quality.
“Despite the smaller number, it is one that has quite good quality, reinforcing the execution of the disciplined strategy, as we have been saying,” said Leão, in a press conference. “Paying taxes is a good sign, it’s a sign that I’m offering more, I’m generating more activity.”
Regarding ROAE , he said the drop was a "mathematical" issue, influenced by the increase in net worth and the fall in profit on a quarterly basis, and is not a cause for concern.
“We are quite confident that this ROAE will return to a growth trajectory throughout the year,” said Leão. “It’s not a structural decline, absolutely nothing that worries us.”
In a year in which the Selic rate is expected to fall less than anticipated, Leão said that the expectation is for improved results, supported by the organic growth of the operation.
For him, the prospect of a smaller and less accelerated easing of monetary policy does not alter the dynamics for the year, nor the strategy of caution in granting credit, even if the market financial margin recovers more slowly than desired.
In the first three months of the year, Santander's expanded loan portfolio reached R$ 705.6 billion, a 3.4% increase year-on-year, but a 0.4% decrease quarter-on-quarter.
Gross financial margin grew 3.1% in the quarter and decreased 0.7% year-on-year, to R$ 15.8 billion. Financial margin with customers showed a reduction of 1.4% in the quarter and an increase of 4.8% year-on-year, to R$ 16.6 billion. The margin with the market fell 48.1% on a quarterly basis, to a negative value of R$ 771 million, reversing the positive balance of R$ 97 million last year.
Leão also highlighted that the smaller drop in the Selic rate will not affect the dynamics of Santander's loan loss provisions (PDD), since they remain quite high. The total managerial PDD result reached R$ 6.3 billion, a 3.9% increase compared to the previous quarter. Year-to-date, it fell 0.7%.
“The points of concern we have with the portfolio, I would say, are the same whether interest rates fall faster or slower,” said Leão. According to him, in the agribusiness segment, he stated that most operations are collateralized. In the credit card portfolio, the bank continues to reduce risk and is attentive to specific cases in the wholesale segment.
"The trend for loan loss provisions, even though we don't give guidance , is that, at a minimum, it will follow the growth of the portfolio and, potentially, in some portfolios, it [loan loss provision] may be slightly higher," he stated.
In his last press conference to discuss the bank's balance sheet, Leão stated that he is leaving the institution prepared for a new cycle, in which growth is not based exclusively on revenue and customer base expansion. "Growth means maturation of the franchise, growth in diversification, recurring revenue, solid results, and sustainability of results," he said.
Regarding criticism that he failed to match the nominal annual profit of 2021, Leão said he expects the year-end result to reach the level it was at before he took over. He added that the bank is on track to achieve a ROAE of 20% by 2028.
“My goal of reaching and exceeding a 20% ROAE in the coming years is absolutely achievable. I believe this is entirely feasible for 2028, the full year of 2028, but we are working to hit that ROAE even before 2028,” he said.
Santander's units were down 1.97% at R$28.84 around 11:20 AM. Year-to-date, the assets are down 14.5%, bringing the market value to R$110 billion.
