Amid a complicated macroeconomic scenario for banks, Bradesco recorded another quarter of increased net profit and expanded profitability, managing to maintain growth in its loan portfolio even with higher provisions.
The bank closed the second quarter with recurring net income of R$ 7 billion, an increase of 16.2% compared to the same period last year and 3.5% compared to the result of the first quarter. Analysts consulted by Bloomberg expected Bradesco to register a profit of R$ 6.96 billion.
The return on average equity (ROAE) reached 16.2%, up 0.4 percentage points compared to the previous quarter and 1.6 percentage points compared to the same period last year.
"We maintained good commercial traction, despite a moderate risk appetite, as we grew more year-over-year than in the previous quarter," says Marcelo Noronha , CEO of Bradesco, in a statement. "We managed treasury and credit risks well. We made fine adjustments to our models and our exposure to riskier lines and clusters."
The result was in line with market expectations, a positive development during a turbulent economic period that hit Santander hard.
"This was Bradesco's tenth consecutive quarter of profit growth, confirming the recovery trajectory the bank has been showing in recent years," said Vitor Bueno, partner and analyst at Nord Investimentos.
The bank reported total revenues of R$ 37.6 billion, up 2.1% quarter-on-quarter and 10.3% year-on-year. Gross financial margin reached R$ 20.8 billion, up 15.7% year-on-year and 4.1% quarter-on-quarter. The margin with clients rose 3.6% in the quarter and 13.8% over 12 months, to R$ 20.2 billion.
Even signaling a more conservative stance in granting credit, the expanded portfolio totaled R$ 1.1 trillion, an increase of 11.6% year-on-year and 4.3% quarter-on-quarter. The portfolio for individuals rose 8.4% compared to the second quarter of 2025 and 1.2% compared to the previous quarter, to R$ 479.7 billion.
The SME portfolio expanded by 16.1% year-on-year and increased by 5.1% quarter-on-quarter, reaching R$ 267.5 billion. The large company portfolio closed the second quarter at R$ 389.4 billion, a 12.7% increase compared to the same period in 2025 and a 7.8% increase compared to the first three months of the year.
According to Nicolas Merola, an analyst at EQI Research , the portfolio grew at an accelerated pace, with the bank reducing its exposure to personal loans for individuals and focusing on safer modalities, such as those with real guarantees, like vehicle loans, which grew by 26.8%.
“However, the bank is growing the most in corporate lending, mainly in rural credit, a sector that has been experiencing difficulties,” he said, citing that rural credit grew 20.3% in the quarterly comparison and 31% annually, to R$ 56.7 billion. “This is a point of concern,” Merola added.
According to Bueno, from Nord, the increase in provisions was a negative point, although expected. The expanded expense with provisions for doubtful accounts (PDD) grew 22.6% year-on-year and 3.3% quarter-on-quarter, to R$ 9.98 billion.
He also pointed out that delinquency rates exceeding 90 days increased by 0.1 percentage point compared to the first quarter, reaching 4.3%.
A manager interviewed by NeoFeed highlighted that this increase in loan loss provisions would be worrying if the portfolio were growing more in higher-risk operations, but Bradesco has been primarily active in safer lines of credit.
"Since the origination hasn't been in that [mass market and open market] audience, it doesn't worry me. The increase in loan loss provisions ends up being normal because the credit cycle is bad," he said, asking not to be identified.
Revenue from services totaled R$ 10.5 billion in the second quarter, up 1.1% compared to the previous quarter and 1.7% year-on-year. Operating expenses, on the other hand, rose 3.4% compared to the second quarter of 2025, to R$ 16.4 billion, and increased 1.6% compared to the first quarter.
The operational efficiency index, which measures cost in relation to revenue, reached 46.5%, with decreases of 0.4 percentage points and 3.4 percentage points in the quarterly and annual comparisons, respectively. The lower the index, the better the bank's efficiency.
According to the manager, the result sets the tone for what should come in the second half of the year. "Despite having significant growth potential, Bradesco wants to improve its ROAE by doing things right, in a structural way. It will continue to be a quarterly improvement," he said.
In after-hours trading on the New York Stock Exchange (NYSE), Bradesco shares were up 0.57%, at US$3.50. Bradesco's preferred shares closed the session down 0.76%, at R$18.05.
For the year, the shares have accumulated a decline of 0.77%, bringing the bank's market value to R$ 180.7 billion.
