Banco Santander reported net income, excluding items, of 1.427 billion reais, or $637 million, which slightly beat the 1.404 billion reais estimate from analysts polled by Thomson Reuters. The company's loan delinquencies measured by the 90-day default ratio increased to 3.8% of outstanding loans, in line with estimates.
Banco Santander's Spanish parent bank also initiated an offer to buy out the 25% of its Brazilian unit that it does not already own. Banco Santander Brasil CEO Jesus Zabalza told investors in an earnings conference call on Tuesday the buyout offer "reflects the great confidence the group has in the future of Brazil and its business in the country" and that the market is not evaluating the true value of Banco Santander Brasil and of Brazilian businesses in general, according to Reuters.
Zabalza said the deal could be worth as much as 4.7 billion euros, or $6.5 billion, and expects it to close by October.The stock was up 15.4% to $6.67 at 10:57 a.m. on Tuesday. Must Read: Warren Buffett's 10 Favorite Growth Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. STOCKS TO BUY: TheStreet's Stocks Under $10 has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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