Banco Bradesco (BBDC4) Q2 2025 earnings summary

Executive summary

• Recurring net income reached R$6.1 billion in 2Q25, up 33.7% year-over-year and 3.5% quarter-over-quarter, with ROAE at 14.6%, reflecting operational improvements and transformation plan benefits.

• Total revenue was R$34.0 billion, up 15.1% year-over-year and 5.2% quarter-on-quarter, with growth across NII, insurance, and fees.

• Loan portfolio expanded 11.7% year-over-year to R$1,018 billion, with strong growth in individuals and MSMEs.

• Delinquency rates remained stable, with over-90-day NPL at 4.1%-4.2% and restructured portfolio declining 21% year-over-year.

• Transformation initiatives accelerated, including technology adoption, digital platforms, and footprint adjustment.

Financial highlights

• Net interest income was R$18.0 billion, up 15.8% year-over-year and 4.7% quarter-over-quarter; client NII rose 16.4% year-over-year.

• Fee and commission income reached R$10.3 billion, up 10.6% year-over-year and 5.5% quarter-on-quarter.

• Insurance, pension, and savings bonds income rose 21.7% year-over-year, with insurance net income at R$2.3 billion and ROE near 22%.

• Operating expenses were R$15.9 billion, up 9.9% year-over-year, with ongoing footprint reduction and investments in technology.

• Cost of credit was R$8.1 billion, up 11.7% year-over-year.

Outlook and guidance

• Guidance for fee and commission income raised to 5%-9%, and insurance to 9%-13% due to strong traction.

• NII net of provisions guidance maintained at R$37-41 billion, with potential for further growth.

• Loan portfolio growth guidance for 2025 maintained at 4%-8%.

• Operating expenses guidance held at 5%-9% growth.

• Continued focus on high-quality segments and digital transformation amid expectations of slower economic growth.