Bradesco reported third-quarter recurring net profit of 5.2 billion reais, up 13.1% from the same period a year earlier, according to data released by the bank on Thursday.
Analyst forecasts compiled by Lseg indicated an average expected profit of 5.14 billion reais for Bradesco between July and the end of September. Compared to the second quarter, the bank’s final result recorded an increase of 10.8%.
Average return on equity (ROAE) reached 12.4% in July-September 2024, compared to 11.4% in the previous quarter and 11.3% a year earlier.
The expanded credit portfolio totaled 943.9 billion reais, up 7.6% in the 12 months and 3.5% in the quarter, with the 90-day total default rate falling to 4.2%, from 5 .6% of the previous year and from 4.3% in the second quarter.
Bradesco’s result came two days after Santander Brasil opened the reporting season for large listed banks in Brazil, reporting that its third-quarter portfolio grew 6% from a year earlier and the default rate was remained stable at 3.2% compared to the previous year. immediately preceding quarter.
Provisions for bad debts (PDD) fell 22.4% year-on-year to 7.1 billion reais in the third quarter. In comparison with the immediately previous three months, a decrease of 2.2% was recorded. In the first nine months of the year the credit portfolio showed growth of 7.6%, while the financial margin recorded a decline of 4.8% and the PDD expanded the totals. 22.2 billion reais.
According to Bradesco’s executive president, Marcelo Noronha, although the macro scenario presents challenges, the mix of the credit portfolio is very conservative and the new credit collections have shown good quality.
“Our default rates have improved again across all segments. So we feel comfortable continuing to move forward,” the executive said in a press release.
The overall financial margin amounted to 16 billion reais, up 0.9% compared to the same period of 2023 and expanding by 2.7% in the quarter, with the margin with customers contracting by 1.3% on year-on-year basis, but up 2.5% quarter-on-quarter to 15.6 billion reais.
Revenues from services provided grew in the three months ended at the end of September by 8.7% on an annual basis and by 6.3% compared to the previous quarter, reaching 9.9 billion reais, partly influenced by the increase in share of Heaven.
In the third quarter, the delisting of Cielo, a payments company of which Bradesco shares control with Banco do Brasil, was completed. Excluding this effect, revenues would have increased by 5.1% and 2.8% respectively.
The bank’s operating expenses amounted to 15.05 billion reais, up 12.1% year-on-year and 4% in the quarter, a trend also influenced by Cielo. Net of this the variations would have been 9.9% and 2% respectively.
Bradesco maintained its forecast for 2024, including a 7% to 11% expansion of the expanded credit portfolio and a 3% to 7% increase in total financial margin, as well as a PDD of between 35 and 39 billion reais.
HIGH INCOME
In addition to the third quarter balance sheet, Bradesco announced on Thursday the new segment for high-income customers, with a renewed service concept, including relationship offices located in areas chosen for their economic profile and high commercial potential.
“The first challenge is conquest, the second is ensuring the profitability and security of the heritage, and the third is enjoying everything that has been built,” he said. “It is not a race with an immediate impact, but a path with gradual and lasting progress,” said the president of Bradesco.
Source: Terra
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