Q2 2026 Banco Bradesco SA Earnings Call Transcript
Key Points
- Bank Bradesco SA (BBD) reported a strong second-quarter 2026 net income of BRL7.1 billion, a 16.2% increase year-over-year, with an ROAE of 16.2%, surpassing market expectations.
- The bank's loan portfolio grew 11.6% year-over-year, driven by strong commercial traction across all segments, including a 16.1% growth in SME lending and a 12.7% increase in large corporate loans.
- Bank Bradesco SA (BBD) is the market leader in FGI/FGO origination with a 21.6% market share, and its portfolio in these secured government-guaranteed lines grew 64.5% year-over-year.
- The bank's insurance segment showed resilience, with net income growing 28.3% to BRL2.9 billion, and the group remains the largest in Latin America with a quarterly ROAE of 22.8%.
- Bank Bradesco SA (BBD) is strengthening its capital position, with a planned BRL10 billion capital increase from shareholders, which is expected to boost its common equity Tier 1 ratio to 13.6%.
- The bank is gaining market share in vehicle financing, with a 26.8% year-over-year growth, by leveraging a new platform with AI and machine learning for better risk-adjusted returns.
- Bank Bradesco SA (BBD) continues to see strong growth in payroll loans, particularly in the private segment, where its delinquency rate of 4.7% is significantly lower than the market's 8.9%.
- The cost of risk increased due to provisions related to FGI/FGO guarantee-claim periods and the consolidation of John Deere Bank, putting pressure on the bank's NPL ratios.
- Bank Bradesco SA (BBD) faces a challenging macroeconomic environment in Brazil, with high household debt and interest rates, which could pressure credit quality and growth.
- The bank's fee and commission income growth was modest at 1.7% year-over-year, partly due to a high baseline in capital markets and pressure on current account fees from competition.
- There is a potential for continued pressure on NPLs and cost of risk from the agribusiness segment, despite the bank's lower delinquency rates compared to the market.
- The bank's capital increase, while strengthening its balance sheet, could dilute returns and create a challenge in maintaining its ROAE growth trajectory.
- Bank Bradesco SA (BBD) is experiencing a slight increase in NPL over 90 days, driven by specific wholesale clients and the FGI/FGO portfolio, which may require ongoing monitoring.
- The bank's growth in earmarked credit lines like FGI/FGO is dependent on government program funding, which could be subject to fiscal constraints and policy changes.
Good morning everyone. Thank you so much for joining us, again. We are here, once again, to speak about our earnings results, especially for the second-quarter of 2026.
We are talking to you straight from our studios at Cidade de Deus. Now, it's 10:31, August 6. We are here live; and alive; and kicking.
If I even say this, probably, the young generation doesn't even know what it is. We are here broadcasting live from Cidade de Deus. I'm here to present our results.
As you've seen from yesterday's publication, we reached BRL7.1 billion net income in the second quarter and 16.2% growth, year on year; 3.5%, quarter-over-quarter, with [ROAE] of 16.2%, higher than what the market expected because the market expected that we would reach 16% ROAE in the last quarter of this year.
Here, I bring a summary of our presentation. I'm not going to elaborate on any of those topics. But loan portfolio is growing with more guarantees, with a very good risk-adjusted return.
In the past two months, our IR
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