Banco Bradesco (BBDC4) Q4 2024 earnings summary

Executive summary

• Recurring net income reached R$19.6 billion in 2024, up 20% year-over-year, with Q4 at R$5.4 billion, reflecting improved profitability and operational transformation.

• Customer base expanded by over 2 million, with 99% of transactions on digital channels, and significant growth in assets under management and insurance sales.

• Transformation initiatives included digitalization, organizational restructuring, technology modernization, and acquisitions of 50% of John Deere Bank and Cielo.

• Profitability growth was driven by revenue, with ROAE at 12.7% in Q4, up 5.8 p.p. year-over-year.

• Delinquency ratios improved across all segments, especially MSME, with >90-day delinquency down 1.1 p.p. year-over-year.

Financial highlights

• Total revenue in Q4 2024 reached R$32.3 billion, up 5.4% quarter-over-quarter and up to 17.9% year-over-year; NII grew 6.2% quarter-over-quarter and 5.4% year-over-year.

• Loan portfolio reached R$981.7 billion in Q4, up 4.0% sequentially and 11.9% year-over-year, with strong growth in individuals (+13.3%) and MSMEs (+28%).

• Fee and commission income in Q4 was R$10.3 billion, up 3.6% sequentially and up to 13.7% year-over-year; insurance operations delivered 16.6% revenue growth.

• Operating expenses in Q4 were R$16.4 billion, up 9.1% sequentially and up to 9.9% year-over-year, reflecting transformation investments.

• Non-recurring provision of R$440 million made in Q4 to support transformation.

Outlook and guidance

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

• Cost of risk expected to remain around 3%, with continued focus on risk-adjusted returns and portfolio quality.

• Transformation and technology investments will continue regardless of macro scenario, aiming for long-term efficiency and productivity gains.

• Operating expenses expected to grow 5–9% in 2025, with profitability expected to continue rising.