Banco Bradesco (BBDC4) Q1 2025 earnings summary

Executive summary

• Recurring net income reached R$5.9 billion in 1Q25, up 8.6% quarter-on-quarter and 39.3% year-over-year, with ROAE at 14.4%.

• Profitability improvement driven by operational advancements, transformation initiatives, and technology investments.

• Expenses remained in line with expectations, with efficiency gains and cost control measures keeping growth below inflation.

• Insurance operations showed strong improvement, with ROAE at 22.4% and net income up 25.3% year-over-year.

• Transformation and cultural evolution enhanced productivity and efficiency.

Financial highlights

• Total revenue was R$32.3 billion in 1Q25, up 15.3% year-over-year; net interest income reached R$17.2 billion, up 13.7% year-over-year.

• Fee and commission income rose 10.2% year-over-year; insurance revenue grew 32.7% year-over-year.

• Operating expenses increased 12.3% year-over-year, with efficiency ratio at ~50%.

• Insurance, pension, and capitalization net income was R$2.4 billion, up 25.3% year-over-year.

• Operating income was R$7.5 billion, up 51.5% year-over-year.

Outlook and guidance

• 2025 guidance maintained: loan portfolio growth of 4–8%, NII net of provisions R$37–41 billion, fee and commission income growth of 4–8%, operating expenses growth of 5–9%, and insurance-related income growth of 6–10%.

• Trending towards the top of annual guidance, with gradual and secure growth expected.

• Optimistic about performance despite macroeconomic challenges, with focus on secured and payroll deductible loans.