Banco Bradesco (BBDC4) Q4 2025 earnings summary

Executive summary

• Recurring net income reached R$6.5 billion in Q4 2025, up 20.6% year-over-year, and R$24.7 billion for the full year, a 26.1% increase, with ROAE at 15.2% for the quarter, surpassing cost of capital.

• Transformation plan launched in February 2024 focused on technology, digitalization, and operational efficiency, with over 200 initiatives implemented and accelerated execution for sustainable, customer-centric growth.

• Digital retail clients reached 19 million, with a target of 40 million by 2026, and direct cost to serve reduced by 40x.

• Affluent client segments upgraded, with 3.1 million clients and 62 new offices for the Principal segment, aiming for 4.7 million affluent clients by next year.

• SME market share increased from 14.3% to 16.6% by September 2025, supported by digital and physical expansion and improved NPS.

Financial highlights

• Total revenue in Q4 2025 was R$36.1 billion, up 2.9% quarter-over-quarter and 9.8% year-over-year; full-year revenue grew 13.2% over 2024.

• Net interest income for Q4 2025 was R$19.2 billion, up 2.9% quarter-over-quarter and 13.2% year-over-year; full-year NII was R$73.3 billion.

• Loan portfolio reached nearly R$1.1 trillion in December 2025, with micro, small, and medium-sized companies growing 21.3%.

• Operating expenses increased 8.5%, mainly due to a 22% rise in technology investments and higher profit-sharing.

• Insurance operations delivered ROE of 24.3% in Q4 and nearly 22% for the year, with operating results exceeding guidance.

Outlook and guidance

• Guidance for 2026 includes continued investment in technology, with expense growth of 8% (3% from technology, 5% from HR/profit-sharing).

• Loan portfolio expected to grow 8.5%-10.5%, with strong traction in SMEs and individuals.

• CET1 ratio expected to remain around 11% throughout 2026, absorbing portfolio growth and regulatory adjustments.

• ROE expected to continue rising, with management optimistic about surpassing 15.67% and aiming for 40% efficiency ratio by 2028.

• Profitability expected to continue increasing sustainably in 2026, driven by revenue growth and controlled credit risk.