Itaú (ITUB4) or Santander (SABN11): Who suffered more with the Americanas case (AMER3) in 4Q22?

Santander suffered more from the Americanas case than Itaú, says analyst (Image: Angel Garcia/Bloomberg)

O Santander (SABN11) suffered more than the Itau (ITUB4) with Americanas’ accounting deficit in the balance sheet for the fourth quarter of 2022 (4Q22), says the analyst of the Empiricus, Larissa Quaresma. According to her, the thud was greater in SANB11because the weight of AMER3 in the bank’s credit portfolio is more representative.

In the case of Itaú, which released the balance sheet on Tuesday night (7), the total expense with defaulters was R$ 9.8 billion, quarterly growth of 23%, driven by Americanas. Santander, which shared its figures last week, reported BRL 7.4 billion in the same indicator, an increase of 19%.

The difference, according to Quaresma, is that Itaú provisioned 100% of its exposure to the retailer, of R$ 1.3 billion, as a credit loss. “We consider it a wise decision, as it ‘zeroes the loss’ and allows investors to look ahead”, says the analyst.

Excluding this effect, Empirucus estimates that Itaú’s bad debt expense would have grown by 6% quarter on quarter.

In addition, Americanas’ estimated debt with Itaú is BRL 2.7 billion, while with Santander it is BRL 3.6 billion, according to the list of creditors submitted to the Court.

The fall of Americanas in Itaú and Santander

Itaú reported recurring net income of R$7.66 billion in the fourth quarter of last year. The figure represents an increase of 7% in profit, but still below the R$ 8.259 billion expected by the market.

O USB BB highlights the provisioning and reallocation referring to Americanas. Thiago Batista and Olavo Arthuzo, investment bank analysts, claim that, excluding this event, profit would have increased by 4% in the quarter and return on average equity (ROAE) by 21%.

Rafael Reis, who signs the report of the BB Investimentosalso says that the impact on profit due to this provision was approximately R$719 million, already considering the tax benefit generated by the expense.

As for Santander, the credit loss related to Americanas caused part of the 47% deterioration in net income, says Quaresma, from Empiricus. The bank had a profit of R$ 1.6 billion in the period, but without Americanas, it would be between R$ 2.1 billion and R$ 2.5 billion.

The analyst also points out that of the total loss with loans, R$ 7.4 billion, between R$ 600 million and R$ 1 billion, or between 8% and 14%, refer to the retailer. Excluding this effect, the bank’s return on equity (ROE) would have been between 10% and 12%, still down from 16% in the previous quarter.

In addition, the financial margin after default fell 19% quarterly, to R$ 5.2 billion. Without the Americanas effect, the margin would have dropped between 4% and 10%.

Source: Moneytimes

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