Santander Shares Drop After Surprise Result in Brazilian Election
By Michael Hennessey
Banco Santander shares fell after a surprise victory for leftist candidate President Luiz Inacio Lula da Silva over right-wing contender Flavio Bolsonaro in Sunday's presidential election.
Shares in Santander were down 5.3% at 10.90 euros during early European trading on Monday.
The election was a key catalyst for the Spanish bank, as the South American country is its second-largest market, contributing 15% of earnings in 2025 with a pretax profit of 3.22 billion euros ($3.61 billion).
Operating as one of Brazil's largest private lenders, Santander is exposed to local consumer credit and domestic interest rates, leaving its bottom line sensitive to shifts in the country's political and economic leadership.
A victory for Bolsonaro--which was widely expected--had been viewed as the more market-friendly outcome due to promises of fiscal consolidation, privatization and pro-business reforms.
The first round of the election earlier this month gave a clear lead to Bolsonaro ahead of Sunday's runoff vote, so Lula's victory surprised investors.
Currency futures and exchange-traded funds tracking Brazilian stocks also fell early on Monday.
Write to Michael Hennessey at michael.hennessey@wsj.com
(END) Dow Jones Newswires
October 26, 2026 04:55 ET (08:55 GMT)
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