Banco Bradesco (BBDC4) Q2 2024 earnings summary

Executive summary

• Recurring net income reached R$4.7 billion in 2Q24, up 12% quarter-over-quarter and 4.4% year-over-year, with 1H24 net income at R$8.9 billion, up 1.5% year-over-year.

• ROAE was 11.4% in 2Q24, reflecting solid profitability growth.

• Transformation initiatives and digital investments enhanced operational efficiency and client experience.

• Loan portfolio exceeded R$912.1 billion, with strong growth in individuals and SMEs, and improved asset quality.

• Delinquency rates improved across all segments, with a rising coverage ratio.

Financial highlights

• Net interest income rose to R$15.6 billion in 2Q24, up 2.8% quarter-over-quarter and 5.9% year-over-year, driven by client NII.

• Fee and commission income reached R$9.3 billion in 2Q24, up 15.1% quarter-over-quarter and 6.4% year-over-year.

• Loan loss provisions were R$7.3 billion, down 6.7% quarter-over-quarter but up 29.3% year-over-year.

• Insurance segment net income was R$2.2 billion in 2Q24, up 12.7% quarter-over-quarter, with ROAE at 22.1%.

• Operating expenses increased 8.3% quarter-over-quarter and 10.6% year-over-year, impacted by civil and tax provisions.

Outlook and guidance

• 2024 net income guidance is R$17.5–18.5 billion, above the midpoint of guidance.

• Expanded loan portfolio growth for 2024 expected at 5.0%, with NII growth of 7–11% and fee/commission income growth of 3–7%.

• Efficiency ratio targeted to decline to around 40% by 2028, with improvements expected from 2025 onward.

• Strategic plan execution is on track, with digital and transformation benefits expected to accelerate from 2025.

• Positive outlook for insurance operations for the remainder of 2024.