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 in 2Q25, up 15.1% year-over-year and 5.2% quarter-on-quarter, driven by 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.

• Digital transformation and GenAI adoption accelerated, driving productivity, efficiency, and new digital services for individuals and companies.

• Delinquency rates remained stable, with the restructured portfolio declining 21% year-over-year.

Financial highlights

• Net interest income reached R$18.0 billion in 2Q25, up 15.8% year-over-year and 4.7% quarter-on-quarter; NII net of provisions guidance maintained at R$37-41 billion for 2025.

• Fee and commission income totaled R$10.3 billion in 2Q25, 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 in 2Q25, up 9.9% year-over-year, with growth in line with inflation and ongoing footprint reduction.

• 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 2025 maintained for loan portfolio growth (4%-8%), NII net of provisions (R$37-41 billion), and fee/commission income (4%-8%); insurance income guidance raised to 9%-13%.

• 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%.