Banco Bradesco S.A. earnings

Management highlights

- Recurring net income growth driven by total revenue increase. - Insurance segment with consistent results and launch of Brad Saúde. - Transformation with increased use of Gen-AI and high technology. - Focus on conservative risk appetite in loan portfolio growth. - Growth in various loan portfolios like auto loans, credit cards, payroll deductible loans. - Improvement in credit portfolio quality with secure loans and coverage ratio. - Growth in fee income from consortia and investment banking. - Efficiency in operating expenses with controlled growth and footprint review.

Guidance

- Reiterated guidance for insurance segment growth between 6 - 8%, with Q1 performance above upper range but confident in full-year guidance. - Expectation of NII growth to continue with moderate risk appetite, considering various loan portfolio growth and risk-adjusted return. - Confidence in achieving ROE targets through step-by-step growth and various business initiatives. - Stable capital position with expectation to maintain or improve capital ratios.

Segment performance

Recurring net income in Q1 2026 was 6.8 billion BRLs, up 16.1% YOY and 4.5% QOQ with ROAE of 15.8%. Total revenues grew 14% YOY. Insurance segment delivered consistent results with almost 22% ROE. Loan portfolio reached almost 1.1 billion BRLs, growing 8.4% YOY. NII grew 16.4% YOY, with client NII and market NII contributing. Fee income was up 6.2% YOY. Restructured portfolio between Dec 23 and Mar 26 was down to 14 billion, with Stage 3 coverage ratio growing.

Risks & headwinds

- Uncertain macroeconomic scenario including Middle East war impact. - Potential degradation in some credit lines, especially in agribusiness and large corporates. - Civil and labor claims as contingencies that could impact expenses. - Risks associated with specific corporate cases and court reorganizations affecting provisions and coverage ratio.

Analyst Q&A

• Q: About NII growth with moderate risk appetite and concerning credit segments.

  A: Risk appetite is conservative with model adjustments, NII growth expected to continue with focus on high-quality credit and controlled cohorts. -

• Q: On costs converging to peers' level.

  A: Cost to income ratio improvement in progress with technology investment and footprint adjustment, civil and labor claims expected to converge in future years. -

• Q: On capital source and LLP.

  A: Capital source related to tax credits and DTAs, LLP growth due to portfolio growth and 4966 impact. -

• Q: On sustainable ROE.

  A: Pursuing 18% ROE through step-by-step growth and competitiveness improvement. -

• Q: On Brad Saúde impact on capital and Desenrola program.

  A: Brad Saúde had positive capital impact, Desenrola program impact expected to be small in short term. -

• Q: On balance sheet efficiency and DTAs.

  A: Looking at other balance sheet opportunities, DTAs inventory nominal flat, footprint and headcount adjustments in progress. -

• Q: On extraordinary liability and DTAs.

  A: Extraordinary liability settled using DTAs, DTAs inventory nominal flat, footprint and headcount adjustments in progress. -

• Q: On provisioning and ROAE leverage.

  A: Comfortable with leverage, provisioning and growth in various lines driving ROAE. -

• Q: On organic capital generation.

  A: Already generating organic capital with net income contribution, expecting to maintain and improve capital position through business initiatives.