Bradesco Posts Strong Q3 Profit Amid Brazil’s Economic Slowdown

Banco Bradesco SA, one of Brazil’s largest private banks, reported a recurring net profit of R$6.2 billion ($1.16 billion) for the third quarter of 2025, marking an 18.8 percent increase from the same period last year.

The result aligned with market expectations, meeting the Bloomberg consensus forecast of R$6.1 billion ($1.14 billion), and signaled a steady recovery for the institution amid a tepid national economy.

Brazil’s gross domestic product grew by just 0.4 percent quarter-over-quarter, down from 1.3 percent in the prior period, as high interest rates and fiscal uncertainties weighed on activity.

Despite these headwinds, Bradesco expanded its credit portfolio to R$1 trillion ($186.6 billion), up 9.6 percent annually and 1.6 percent sequentially, driven by 13.8 percent growth in personal loans and 6.5 percent in corporate lending, with strong performance in micro, small, and medium enterprises.

Asset quality remained stable, with delinquency rates over 90 days at 5.4 percent, unchanged from the previous quarter and down 0.1 percentage points year-over-year.

Provisions for doubtful debts rose to R$8.5 billion ($1.59 billion), a 20 percent annual increase and 5.1 percent quarterly, reflecting caution in wholesale operations.

Bradesco Posts Strong Q3 Profit Amid Brazil’s Economic Slowdown

Total revenues reached R$35 billion ($6.53 billion), advancing 13.1 percent year-over-year and 3 percent quarter-over-quarter, while service fees totaled R$10.5 billion ($1.96 billion), up 6.9 percent annually.

The financial margin stood at R$18.7 billion ($3.49 billion), growing 16.9 percent year-over-year.

Return on equity improved to 14.7 percent, up 2.3 percentage points annually, though it trailed rival Santander Brasil’s 17.5 percent.

Santander, which reported one day earlier, posted a managerial profit of R$4 billion ($746 million), an 11 percent rise that exceeded estimates of R$3.71 billion ($692 million).

Bradesco’s operational expenses climbed to R$16 billion ($2.99 billion), increasing 9.6 percent year-over-year, in line with investments in technology and affiliates.

CEO Marcelo Noronha emphasized a “step-by-step” approach prioritizing asset quality over rapid growth, stating, “The quality of our assets is non-negotiable.”

The bank outperformed 2025 guidance in credit expansion (9.6 percent vs. 4-8 percent target), service revenues (9.2 percent vs. 5-9 percent), and insurance operations (21.7 percent vs. 9-13 percent), though expenses slightly exceeded projections at 10.5 percent.

Bradesco’s shares rose over 3 percent on the Ibovespa, contributing to a 60 percent year-to-date gain, underscoring renewed investor confidence.

These results highlight the banking sector’s resilience, offering insights into Brazil’s economic trajectory for investors and policymakers alike.