Banco Bradesco S.A. Q2 FY2025 earnings call

Bradesco achieved a recurring net income of BRL 6.1 billion, a significant 28.6% year-on-year growth with an ROAE of 14.6%. The company emphasized consistent operating results across line items. They implemented Gen AI for productivity and efficiency, with initiatives like enterprise agents, multi-agent projects, and Copilot for employees. The bank is undergoing a transformation, with focus on the wholesale bank, retail business, and technology. The Insurance group showed growth in technical provisions and activity, with balanced provisions and operational results.

Total revenue for Bradesco in the second quarter of 2025 was BRL 34 billion, up 15.1% year-on-year and 5.2% quarter-on-quarter. Net interest income saw significant growth, with NII net of provisions reaching BRL 9.9 billion. Fee and commission income was BRL 10.3 billion, growing 10.6% year-on-year and 5.5% quarter-on-quarter, with highlights including card income (~20% YOY), consortium management (~21% YOY), and investment banking capital markets (~34% YOY and ~76% QOQ). The Insurance group had technical provisions of BRL 425 billion in the quarter, growing 11.2% year-on-year and 2.6% quarter-on-quarter. The loan book reached BRL 1.018 trillion, growing 1.3% quarter-on-quarter and 11.3% year-on-year, with growth in individuals (almost 16% YOY) and micro/SMEs (25.2% YOY). Operating expenses were BRL 15.9 billion, with personnel and administrative growth at 4.9%, but administrative expenses had negative growth due to efficiency initiatives.

The economy is expected to be slower in the second half of 2025. Fee and commission income guidance was adjusted to 5%-9%, and the Insurance group guidance was revised to 9%-13%. The midpoint of the guidance for NII net of provisions is BRL 37-41 billion. The bank expects to continue growing in a balanced manner while managing risks associated with the economic slowdown.

Impact of economic slowdown on demand for credit. Monitoring of delinquency levels due to economic conditions. Regulatory and market risks affecting ALM and market NII.

Q: Regarding the positioning of the bank regarding low income segment or mass market...

A: Andre Rodrigues Cano answered about digital transformation and Bradesco Expresso channel.

Q: As I look at operating expenses, 2/3 of the increase came from the line named other...

A: Andre Rodrigues Cano and Marcelo de Araujo Noronha discussed operating expenses, efficiency, and guidance for NII net of provisions.

Q: I will agree with my colleagues and give you congratulations on the earnings...

A: Marcelo de Araujo Noronha and Cassiano Ricardo Scarpelli answered about treasury, expenses, and growth expectations.

Q: Again, on my side, congratulations on the results...

A: Marcelo de Araujo Noronha answered about portfolio growth, delinquency, and metrics.

Q: Congrats on the numbers...

A: Andre Costa Carvalho and Marcelo de Araujo Noronha discussed net interest margin, ROE, and balance sheet performance.

Q: I'd like to hear more about collateralized portfolios...

A: Marcelo de Araujo Noronha answered about government-backed portfolios, risk-adjusted return, and growth opportunities.

Q: Congratulations on your next positive step...

A: Ivan Luiz Gontijo and Andre Costa Carvalho discussed insurance business, health care, and cost of equity.

Q: Congrats on the of the results of the bank...

A: Marcelo de Araujo Noronha answered about agribusiness portfolio, risk management, and expansion plans.

Q: Congratulations on your results...

A: Marcelo de Araujo Noronha and Cassiano Ricardo Scarpelli answered about footprint reduction, initiatives, and value release.

Q: Congratulations on the results...

A: Marcelo de Araujo Noronha and Andre Costa Carvalho answered about payroll deductible loans, agribusiness growth, and customer protection.

Q: I am another person congratulating you on good earnings...

A: Cassiano Ricardo Scarpelli answered about DTAs, consumption, and trajectory.

Q: And yes, congratulations on the continued improvements in the quality of results...

A: Marcelo de Araujo Noronha answered about capital base, core Tier 1, and dividend assumptions