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 net interest income, 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 a 21% year-over-year decline in the restructured portfolio.

• Transformation initiatives accelerated, including digital transformation, GenAI adoption, and footprint optimization.

Financial highlights

• Net interest income reached R$18.0 billion, up 15.8% year-over-year and 4.7% quarter-on-quarter; NII net of provisions guidance maintained at R$37-41 billion.

• Fee and commission income totaled R$10.3 billion, up 10.6% year-over-year and 5.5% quarter-on-quarter, with private income and investment banking as standouts.

• Insurance, pension, and capitalization bond income rose 21.7% year-over-year and 6.5% quarter-on-quarter; insurance segment net income reached R$2.3 billion, up 4.4% year-over-year.

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

• Expanded loan book reached R$1,018 billion, up 11.7% year-over-year and 1.3% quarter-on-quarter, with strong growth in individuals and SMEs.

Outlook and guidance

• Guidance for fee and commission income raised to 5%-9% and insurance to 9%-13% for 2025, reflecting stronger-than-expected performance.

• Expectation of slower economic growth in H2 2025 due to high interest rates, but continued focus on high-quality, collateralized portfolios.

• Operating expenses guidance held at 5%-9% growth; actual 1H25 growth was 11.1%.

• Capital ratios expected to remain stable, with Tier 1 at 13% and common equity at 11.1%.