Banco Bradesco (BBDC4) Q1 2025 earnings summary

Executive summary

• Recurring net income reached R$5.9 billion in 1Q25, up 39.3% year-over-year and 8.6% quarter-on-quarter, with ROAE at 14.4%.

• Total revenue was R$32.3 billion, a 15.3% increase year-over-year, driven by growth in net interest income, fees, and insurance.

• Loan portfolio surpassed R$1 trillion, up 12.9% year-over-year, with strong growth in individuals (+16.2%) and MSMEs.

• Transformation initiatives, technology investments, and cultural evolution improved productivity and efficiency.

• Insurance operations showed strong improvement, with ROAE at 22.4% and net income up 25.3% year-over-year.

Financial highlights

• Net interest income reached R$17.2 billion, up 13.7% year-over-year and 1.4% quarter-on-quarter.

• Fee and commission income rose 10.2% year-over-year; insurance income up 32.7% year-over-year.

• Operating expenses increased 12.3% year-over-year, but personnel and administrative expenses grew only 3.7% year-over-year, below inflation.

• Efficiency ratio at ~50%.

• Insurance, pension, and capitalization net income was R$2.4 billion, up 25.3% year-over-year.

Outlook and guidance

• 2025 guidance maintained: loan portfolio growth of 4–8%, NII net of provisions R$37–41 billion, fee and commission income growth of 4–8%, operating expenses growth of 5–9%, and insurance-related income growth of 6–10%.

• Trending towards the top of annual guidance, with potential for review in the second half of the year.

• Expecting gradual, secure growth with continued control of credit risk and optimism despite macroeconomic challenges.