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Banco Bradesco Q2 Earnings Call Highlights

Key Points Interested in Banco Bradesco SA? Here are five stocks we like better. Strong Q2 performance: Banco Bradesco's net income rose 16.2% year over year to BRL 7.1 billion, with ROE reaching 16.2% and revenue increasing 10.3% to BRL 37.6 billion. Insurance net income climbed 28.3% to BRL 2.9 billion. Secured lending led growth: The loan portfolio expanded 11.6%, driven by SME, corporate and vehicle financing, as well as government-backed FGI/FGO credit lines. Bradesco emphasized its shift toward secured loans, with 69% of individual lending collateralized, while maintaining a 3.5% cost of risk. Capital and outlook remain supportive: Management expects to meet its 2026 guidance and forecasts market net interest income approaching BRL 2 billion. A planned BRL 10 billion capital increase, alongside potential regulatory recognition of an additional 140 basis points of capital, is intended to support growth and strengthen resilience. Banco Bradesco (NYSE:BBD) reported second-quarter 2026 net income of BRL 7.1 billion, up 16.2% from a year earlier and 3.5% from the prior quarter, as the Brazilian lender cited expansion in secured lending, improved commercial traction and resilient insurance results. Return on average equity reached 16.2%, which management said was ahead of market expectations. The bank said total revenue rose 10.3% year over year to BRL 37.6 billion. Total net interest income was nearly BRL 20.9 billion, while fee and commission income totaled BRL 10.5 billion. Banco Bradesco's insurance operation contributed BRL 2.9 billion in net income, up 28.3% from a year earlier. Secured Lending Drives Portfolio Growth → Meta's Earnings Drop Shows Wall Street Wants More Than Ad Growth Management said the loan portfolio grew 11.6% year over year, led by lending areas with collateral, guarantees and what it described as attractive risk-adjusted returns. Small and medium-sized enterprise lending increased 16.1% from a year earlier, large-corporate lending rose 12.7%, and lending to individuals increased 8.4%. The bank emphasized its focus on government-backed FGI and FGO credit lines, mortgages, payroll-deductible loans and selected corporate financing. It said earmarked credit expanded 21.4%, compared with 12.7% growth in the broader market. In corporate lending, Banco Bradesco reported 14.7% growth versus 7.9% market growth. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High FGI and FGO originations increased 52.7% in the second quarter from the first quarter, and the bank said it held a 21.6% market share in the programs. Its FGI/FGO portfolio for retail and SMEs grew 64.5% year over year. Management said BRL 31 billion of the BRL 37 billion year-over-year increase in SME lending came from FGI and FGO lines, with most of the remainder coming from leasing, consumer financing, aircraft and boat financing for wealth-management clients, and Plano Empresário lending. Story Continues Vehicle financing grew 26.8% year over year. Management said it had upgraded its platform and deployed machine learning and artificial intelligence in pricing, risk modeling and credit policies. The bank said it was selectively pursuing opportunities in used and semi-new vehicles rather than broadly increasing risk exposure across all vehicle segments. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Payroll-deductible lending increased 9.3%, with strong growth in private-sector loans. Banco Bradesco said its overall payroll-loan delinquency rate of more than 90 days was 2.5%, compared with 3.3% for the market. In private payroll loans, it reported a 4.7% delinquency rate, compared with 8.9% for the market excluding Bradesco. Credit Costs and Asset Quality Management acknowledged pressure on certain credit-quality indicators from the timing of FGI and FGO guarantee claims, the integration of John Deere Bank-related portfolios and a specific wholesale client that was restructured. It said provisions are recorded while the ba