Banco Bradesco (BBDC4) Q4 2025 earnings summary

Executive summary

• Recurring net income reached BRL 6.5 billion in Q4 2025, up 20.6% year-over-year and 5.0% quarter-over-quarter; full-year 2025 net income was BRL 24.7 billion, up 26.1% from 2024, with ROAE at 15.2% in Q4, surpassing cost of capital.

• Transformation plan launched in February 2024 focused on technology, digitalization, and operational efficiency, with over 200 initiatives implemented and accelerated execution for sustainable, customer-centric growth.

• Digital retail clients reached 19 million, with a target of 40 million by 2026, and direct cost to serve reduced by 40x.

• Affluent client segments upgraded, with 3.1 million clients and 62 new offices for the Principal segment, aiming for 4.7 million affluent clients by next year; Prime and Principal segments improved NPS and personalized service.

• SME market share increased from 14.3% to 16.6% by September 2025, supported by digital and physical expansion, improved NPS, and enhanced digital onboarding.

Financial highlights

• Total revenue in Q4 2025 was BRL 36.1 billion, up 2.9% quarter-over-quarter and 9.8% year-over-year; full-year revenue grew 13.2% over 2024.

• Net interest income for Q4 2025 was BRL 19.2 billion, up 2.9% quarter-over-quarter and 13.2% year-over-year; client NII up 17.4%.

• Fee and commission income reached BRL 11.1 billion in Q4 2025, up 4.6% quarter-over-quarter and 8.0% year-over-year.

• Operating expenses increased 8.5% in 2025, mainly due to a 22% rise in technology investments and higher profit-sharing.

• Insurance operations delivered ROE of 24.3% in Q4 2025 and nearly 22% for the year, with operating results and revenue growth exceeding guidance.

Outlook and guidance

• Guidance for 2026 includes continued investment in technology, with expense growth of 6%-8% (3% from technology, 5% from HR/profit-sharing).

• Loan portfolio expected to grow 8.5%-10.5%, with strong traction in SMEs and individuals.

• CET1 ratio expected to remain around 11% throughout 2026, absorbing portfolio growth and regulatory adjustments.

• ROE expected to continue rising, with management optimistic about surpassing 15.67% and aiming for a 40% efficiency ratio by 2028.

• Insurance income and fee/commission income projected to grow 6%-8% and 3%-5%, respectively, in 2026.