By Rogerio Jelmayer
SAO PAULO--The Brazilian unit of Spanish bank Banco Santander SA
(SAN, SAN.MC) plans to focus on organic growth, but it is open to
acquisitions.
"Our strategy is to expand organically, however, we will analyze
all opportunities that arise," Jesus Zabalza, chief executive of
Santander Brasil SA, said Tuesday in a conference call with
reporters.
One of Santander's European rivals, HSBC Holdings PLC, is likely
to sell assets in certain countries, including Brazil, according to
recent news reports. Mr. Zabalza said that he had only heard about
HSBC's reported plans from the media.
"We are looking after the profitability of our operation.
Regarding potential acquisitions, from my side, there's nothing on
the table," said the executive.
Santander Brasil's net profit increased 14.4% in the first
quarter, to 1.63 billion reais ($563 million), helped by the
combination of an increase in lending and the reduction of
provisions charges.
Santander's loan portfolio expanded 15.3% to 258 billion reais
in the period. The bank's credit expansion was led by an increase
in loans to big companies, which rose 39.5% to 110 billion
reais.
Even with the increase in lending, the bank was able to reduce
its provision charges in the period as its default rate
declined.
The bank's provisions charges dropped close to 14% to 2.56
billion reais. Its default rate fell to 3% in the first quarter,
from 3.8% in the prior-year period.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
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