Santander Brasil kicked off the earnings season for banks, reporting its highest quarterly profit in four years. The bank announced on Wednesday, February 4th, a net profit of R$ 4.08 billion in the fourth quarter, a 6% increase compared to the same period in 2024 and a 1.9% increase compared to the third quarter.

The result was slightly above the average of Bloomberg analysts' projections, which pointed to R$ 4.07 billion, although analysts who follow the bank highlighted that the performance was favored by a lower tax rate.

Return on average equity (ROAE) reached 17.6%, a decrease of 0.1 percentage point compared to the fourth quarter of 2024 and an increase of 0.02 percentage point compared to the previous quarter, also in line with expectations.

In a press conference, Santander's CEO, Mario Leão , stated that the performance reflects the selectivity in granting credit, pillars that support the goal of returning to a 20% ROAE. "We are building an increasingly solid and efficient operation, and this is another quarter in that direction. Clearly, we have advanced one or two steps and are continuing with the same strategy," he said.

With the Selic rate expected to fall, Santander remains cautious in granting credit. The bank seeks to reduce risks and expand its participation in segments and products considered safer, even with a lower volume of transactions compared to previous years.

In the fourth quarter of 2025, the expanded loan portfolio totaled R$ 708.2 billion, a 2.8% increase compared to the previous quarter and a 3.7% increase year-on-year. Gross net interest margin was R$ 15.3 billion, a 4% decrease compared to 2024, impacted by the negative result of the market line. Net interest margin with customers, however, grew 6.6% year-on-year and 1.6% compared to the previous quarter.

According to CFO Gustavo Alejo, there is pressure on agribusiness portfolios, small businesses, and lower-income clients, in addition to the possibility of new credit events. "With the Selic rate still high, it's natural that there is pressure," he stated.

The message from executives is that Santander enters 2026 in a better position to deal with these situations, despite the impact this scenario will have on provisions.

According to Leão, the dynamics of various portfolios are better in 2026 than in 2025, when the bank had to reinforce provisions to deal with credit events in companies, highlighting that the risk reduction process is evolving, even though it is not yet complete.

Santander increased its loan loss provisions for the second quarter of 2025 , anticipating losses due to lower asset recovery. In the fourth quarter, the total loan loss provision reached R$ 6.1 billion, a 6.4% decrease compared to the previous quarter. For the year, it increased by 2.9%.

The delinquency rate for payments overdue by 15 to 90 days reached 4%, an increase of 0.3 percentage points compared to 2024. The rate for payments overdue by more than 90 days rose by 0.5 percentage points, reaching 3.7%.

“Nothing will happen in 2026? Certainly some events will occur. It's not that we won't have provisions, but we believe that, relative to 2025, we should see positive developments,” said Leão. “The context requires attention; we will continue to manage the portfolio in a disciplined manner.”

He emphasized that building healthy portfolios involves growing "disproportionately" in select segments, such as high-income and small and medium-sized enterprises, without the pressure of outperforming competitors in aggregate results.

“Ideally, we want to gain market share, but we don't control the pace of growth. The most important thing is to advance in strategic segments. If we grow zero overall, but ten or fifteen percent where we want to, great. That's growing disproportionately,” he stated.

The expansion is also relevant for Santander globally, which announced the purchase of Webster Financial in the United States on February 3rd. The acquisition makes the Spanish bank the tenth largest financial institution in the country, where its presence was previously limited.

Leão emphasized that entering the United States does not diminish the importance of Santander Brasil, the holding company's largest operation, even in the face of higher profits at the parent company. "Brazil doesn't lose relevance, because global profit growth also depends on here," he said.

At around 11:21 AM, Santander's units were down 1.67%, at R$ 35.34. Over the past 12 months, the shares have accumulated a gain of 38.7%, bringing the market value to R$ 133.4 billion.