Bradesco announced on Wednesday, May 6th, that it recorded profit growth for the ninth consecutive quarter in the first three months of the year, in addition to increased profitability, a result that maintained the trend of recent quarters: without surprises or shocks.
The bank closed the first quarter with recurring net income of R$ 6.8 billion, a 16.1% increase compared to the same period last year and a 4.5% expansion compared to the fourth quarter result. Analysts consulted by Bloomberg expected Bradesco to register a profit of R$ 6.6 billion.
The return on average equity (ROAE) was also positive. The indicator reached 15.8%, up 0.6 percentage points on a quarterly basis and 1.4 percentage points annually – Itaú recorded a return of 24.8% and Santander of 16%.
“We delivered on our promise, plus a gradual increase in our profit. More important than a large step is the sustainability of our results,” says Bradesco CEO Marcelo Noronha in a statement.
The initial market reaction to the earnings report was positive. In after-hours trading on the New York Stock Exchange (NYSE), Bradesco's ADRs rose more than 3% before slowing down. Around 8 pm, the shares were up 0.44%, at US$3.87.
Analysts and managers consulted by NeoFeed believe that the Cidade de Deus bank presented positive results, in line with thestep-by-step philosophy that Noronha has been implementing in the bank's recovery, even though some areas still need improvement.
“This result is another step forward, because it improves on what has already been delivered in past quarters,” said Nicolas Mérola, an analyst at EQI Research . “It’s a marginal improvement, as all other quarters have been. These are small but positive steps, considering the challenging scenario for financial institutions.”
The expanded loan portfolio totaled R$ 1.1 trillion, an increase of 8.4% year-on-year and 0.1% quarter-on-quarter. The portfolio for individuals rose 9.5% compared to the first quarter of 2025 and 1.6% compared to the previous quarter, to R$ 474 billion.
The SME loan portfolio saw a 14.4% year-on-year increase, but a 2.3% quarter-on-quarter decrease, reaching R$ 254.6 billion. Meanwhile, the large company loan portfolio advanced 3.3% compared to the first quarter of the previous year, but declined 0.2% compared to the fourth quarter, reaching R$ 361.3 billion.
A manager interviewed by NeoFeed , who asked not to be identified, pointed out that the year-on-year growth of the portfolio represents a slowdown compared to the fourth quarter, when the increase was 11%. "Private payroll loans and vehicle loans were the main highlights of this growth," he stated.
Bradesco reported a gross financial margin of R$ 20 billion in the first quarter, a 16.4% increase year-on-year and a 4.2% increase quarter-on-quarter. The margin with clients rose 2% in the quarter and 16.3% over 12 months, to R$ 19.5 billion, driven by an increase in the average volume of transactions, liability margin, and spreads on other operations.
Delinquency rates exceeding 90 days showed a slight increase compared to the fourth quarter, of 0.1 percentage point, reaching 4.2%. According to Bradesco, the result was influenced by working capital operations with guarantees, which have a specific recovery dynamic. The delinquency rate for individuals remained stable quarter-on-quarter, at 5.4%.
According to Hugo Cabral, equity analyst at Nord Investimentos , the data demonstrates a good situation, with controlled risk, at a time when the market is cautious about the consequences of high interest rates on portfolio quality. "There are no major concerns here," he says.
Mérola highlights the growth of the secured loan portfolio, which reached 60.8% of the total, an increase of 3.8 percentage points in the last 12 months. "This is a profile that other institutions are also adopting, with solid guarantees, a positive evolution for Bradesco," he states.
Expenses related to provisions for doubtful accounts (PDD) increased 26.5% year-on-year and 9.5% quarter-on-quarter, reaching R$ 9.6 billion. Cabral draws attention to this point, stating that the year-on-year increase is greater than that seen in the gross margin, resulting in a net margin of R$ 10.4 billion, an 8% increase. "This is a point of concern," he stated.
Revenue from services totaled R$ 10.4 billion in the first quarter, up 6.2% year-on-year and down 6.4% compared to the previous quarter. Operating expenses rose 7.8% compared to the first quarter of 2025, to R$ 16.2 billion, due to investments in technological infrastructure and the expansion of transaction volume.
The operational efficiency index, which measures cost in relation to revenue, reached 46.9%, representing decreases of 3.3% and 2.8% in the quarterly and annual comparisons, respectively. The lower the index, the better the bank's efficiency.
Despite viewing the performance as positive, Cabral said it is still insufficient to change his position regarding Bradesco. "At this moment, we have a neutral recommendation for Bradesco," he stated.
Bradesco's shares closed the day up 0.42%, at R$ 19.27. Year-to-date, the shares have risen 5.76%, bringing the market value to R$ 189.9 billion.
