Banco Bradesco (BBDC4) Q4 2024 earnings summary

Executive summary

• Recurring net income reached R$19.6 billion in 2024, up 20% year-over-year, with Q4 net income at R$5.4 billion and ROAE at 12.7%, driven by transformation initiatives and digitalization.

• Customer base expanded by over 2 million, with 99% of transactions through digital channels.

• Strategic acquisitions included a higher stake in Cielo and 50% of John Deere Bank, supporting business diversification.

• Operational improvements and technology modernization drove efficiency and customer growth.

Financial highlights

• Total revenue in Q4 2024 reached R$32.3 billion, up 5.4% quarter-over-quarter and 7.9% year-over-year; net interest income grew 6.2% quarter-over-quarter and 5.4% year-over-year.

• Fee and commission income rose 7.9% year-over-year; insurance income increased 16.6% year-over-year.

• Loan portfolio reached R$981.7 billion, up 11.9% year-over-year, with strong growth in individuals (+13.3%) and MSMEs (+28%).

• Operating expenses grew 9.3% year-over-year, but excluding Elopar and Cielo, growth was 6.9%.

• Expanded loan loss provisions in Q4 totaled R$7.5 billion, with cost of credit stable at 3%.

Outlook and guidance

• 2025 guidance is cautious, with loan portfolio growth expected in the 4-8% range and NII net of provisions projected to grow above the portfolio.

• Cost of risk expected to remain around 3%; continued investment in transformation and technology regardless of macro scenario.

• Fee and commission income growth targeted at 4-8%, operating expenses at 5-9%, and insurance-related income at 6-10%.