2) Credit grew to R$ 1.0 trillion ($185 billion), while 90+ day delinquency held at 4.1%.
3) 2026 guidance targets faster credit growth and higher net financial margin, with higher investment spending.
What happened
Bradesco (BBDC4) reported recurring profit of R$ 6.5 billion ($1.2 billion) in 4Q25. That was up 20.6% year over year and slightly above Bloomberg’s R$ 6.3 billion ($1.2 billion) consensus. Full-year 2025 profit rose 28% to R$ 24.0 billion ($4.4 billion). In New York after-hours, the bank’s ADR fell 3.25%. This is part of The Rio Times’ daily coverage of Latin American markets and financial news.
Drivers
Management says the priority stayed on asset quality, even with slower credit risk appetite.
The CEO described momentum improving into early 2026, but kept “moderate” risk posture.
Brazil’s economy cooled, with GDP up 0.4% in the quarter versus 1.3% prior.
Financials
Profit and profitability
- Recurring profit: R$ 6.5 billion ($1.2 billion) in 4Q25, +20.6% YoY.
- ROE: 15.2%, up 0.5 pp QoQ and 2.5 pp YoY.
- Peer context cited: Santander 17.6% ROE; Itaú 24.4% ROE.
Revenues and margins
- Total revenues: R$ 36.1 billion ($6.7 billion), +2.9% QoQ, +9.8% YoY.
- Fee and service revenues: R$ 11.0 billion ($2.0 billion), +4.6% QoQ, +8.0% YoY.
- Financial margin (total): R$ 19.2 billion ($3.6 billion), +2.9% QoQ, +13.2% YoY.
- Client margin: R$ 18.6 billion ($3.4 billion), +2.7% QoQ, +18.4% YoY.
- Market margin: R$ 126 million ($23 million), +27.3% QoQ, -85% YoY.
Credit and provisioning
- Credit portfolio: R$ 1.0 trillion ($185 billion), +5.3% QoQ, +11% YoY.
- Individuals: +12.7% YoY; corporates: +9.7% YoY.
- Momentum cited in micro, small, and mid-sized firms (MPME).
- Loan-loss provisions (PDD): R$ 10.0 billion ($1.9 billion), +7.4% QoQ, +20.5% YoY.
- 90+ day delinquency: 4.1% in December, stable QoQ and -0.3 pp YoY.
Costs and investment
Operating expenses were R$ 16.9 billion ($3.1 billion), up 2.9% QoQ and 3.3% YoY.
Management signaled heavier 2026 transformation spending, with near-term cost pressure.
Management signals
The CEO framed the quarter as proof the turnaround is working, with credit risk “under control.”
The bank emphasized gradual profit expansion “each of the next quarters,” not a sudden surge.
The bank also said recoveries improved, supporting the provisioning line.
What to watch next
- Whether ROE keeps rising toward peers without loosening underwriting standards.
- Provisioning behavior if GDP stays soft and consumer stress returns.
- Execution risk from higher 2026 spending while keeping costs within guidance.
- Market-margin volatility, after the sharp year-on-year drop.
Key figures
| Metric | Value |
|---|---|
| Recurring profit (4Q25) | R$ 6.5b ($1.2b) |
| Bloomberg consensus profit (4Q25) | R$ 6.3b ($1.2b) |
| Profit (2025 full year) | R$ 24.0b ($4.4b) |
| ROE | 15.2% |
| Credit portfolio | R$ 1.0t ($185b) |
| PDD (provisions) | R$ 10.0b ($1.9b) |
| 90+ day delinquency (Dec) | 4.1% |
| Total revenues | R$ 36.1b ($6.7b) |
| Fee and service revenues | R$ 11.0b ($2.0b) |
| Financial margin (total) | R$ 19.2b ($3.6b) |
| Operating expenses | R$ 16.9b ($3.1b) |
Guidance snapshot
| Line | 2025 guide | 2025 delivered | 2026 guide |
|---|---|---|---|
| Expanded credit portfolio | 4%–8% | 11.0% | 8.5%–10.5% |
| Net financial margin (Total margin – PDD expense) | R$ 37–41b ($6.9–$7.6b) | R$ 40b ($7.4b) | R$ 42–48b ($7.8–$8.9b) |
| Service revenues | 5%–9% | 8.9% | 3%–5% |
| Operating expenses | 5%–9% | 8.5% | 6%–8% |
| Insurance, pension, capitalization result | 9%–13% | 16.1% | 6%–8% |
Sector add-on (banks): quick read-through
- The quarter fits a classic bank repair arc: provisions rose with loan growth while delinquency stayed flat.
- The key question is duration: whether revenue momentum can outpace transformation spending through 2026.
- Another test is market-margin volatility, after the sharp year-on-year drop.
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