(Rewrites 1st paragraph to add Mr. Zabalza name; adds
first-quarter Brazil results)
By Rogerio Jelmayer
SAO PAULO--The Brazilian subsidiary of Spanish bank Banco
Santander (SAN.MC) named Jesus Zabalza president, replacing current
executive Marcial Portela, as the bank faces pressures over its
profitability in Brazil.
Mr. Portela resigned due to personal reasons, the bank said in a
statement. Mr. Zabalza had overseen the bank's operations in other
Latin American nations. Santander didn't give a timetable for the
changes.
Mr. Portela, hired three years ago by Banco Santander Brasil SA
(SANB11.BR), will be nominated to become the bank's chairman,
replacing Celso da Fonseca, who will be vice chairman, the bank
said in a statement late Wednesday.
Mr. Portela's exit comes amid a profitability drop at Brazilian
private-sector banks, due to keen competition from state-run banks
and a bad debt burden resulting in high default rates.
Banco Santander Brasil has been the target of speculation in the
Brazilian press that it would be acquired by rivals Banco Bradesco
SA (BBDC4.BR) or Banco do Brasil SA (BBAS3.BR) due to Santander's
need for capital amid European turmoil. The parties have denied the
rumors.
Santander posted a 14.4% drop in net profit in the first
quarter, due to the increase of its provisions charges amid the
continue rise of default rate, the bank said Thursday.
The bank posted a profit of 1.52 billion Brazilian reais ($755
million), down from BRL1.77 billion in the year ago period. The
bank's provisions charges totaled BRL3.37 billion, up from BRL3.09
billion in the year ago period.
Santander's Brasil default rate ended the first quarter at 5.8%,
up from 4.8% in the first quarter of 2013. The bank's credit
portfolio increased 7.5% in the period at BRL448.6 billion.
Write to Rogerio Jelmayer at rogerio.jelmayer@dowjones.com
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