Banco Bradesco (BBDC4) Q3 2024 earnings summary

Executive summary

• Recurring net income reached R$5.2 billion in 3Q24, up 10.8% quarter-over-quarter and 13.1% year-over-year, with ROAE at 12.4% and solid profitability driven by higher NII, reduced provisions, and productivity gains.

• The bank is executing a transformation plan, including digital and operational investments, footprint adjustments, and a new high net worth segment.

• Balanced credit portfolio growth and improving delinquency ratios supported operational performance.

• Profitability is growing solidly and safely, with consistent delivery on prior commitments.

Financial highlights

• Total revenue for 3Q24 was R$31.5 billion, up 4.2% quarter-over-quarter and 11.7% year-over-year.

• Net interest income reached R$16.0 billion, up 2.7% quarter-over-quarter; fee and commission income was R$9.9 billion, up 2.8% quarter-over-quarter and 5.1% year-over-year.

• Loan portfolio reached R$943.9 billion, up 3.5% quarter-over-quarter and 17.6% year-over-year.

• Insurance group delivered net income of R$2.4 billion and ROE of 23.7%, up 8.1% quarter-over-quarter.

• Operating expenses (excluding Cielo) up 2% quarter-over-quarter; personnel and admin expenses up 0.6%.

Outlook and guidance

• 2024 guidance: expanded loan portfolio growth of 7% to 11%; net interest income growth of 3% to 7%; fee and commission income expected to grow 2% to 6%.

• Guidance remains on track for loan portfolio, NII, and operating expenses.

• Expects efficiency improvements to materialize from 2026 as footprint adjustments are completed.

• Anticipates further digital investments, technology hires, and expansion of high net worth and SME segments.

• Expanded loan loss provisions projected at R$35 to R$39 billion for the year.