Major Brazilian banks report R$ 22.6 billion combined profit

Brazil's three largest private retail banks, Itaú Unibanco, Bradesco, and Santander Brasil, recorded a combined profit of R$ 22.61 billion in the third quarter. This figure represents a 2.4% increase compared to the same period last year and a 0.6% increase over the previous three months, meeting market expectations.

Despite the profit growth, the banking sector faces challenges due to high interest rates and reduced consumer income, which have led to rising delinquency rates. The impact varies among the institutions: Santander is facing significant pressure from low-income agribusiness portfolios, while Bradesco is seeing signs of structural recovery despite macroeconomic headwinds. Itaú Unibanco has remained the most resilient due to disciplined risk management and a preference for safer credit lines.