Liquidity and Risk Management - Liquidity Coverage Ratio (LCR) ensures sufficient liquid instruments to cover net cash outflows in the next 30 days under stress scenarios[321]. - Net Stable Funding Ratio (NSFR) verifies structural funding sufficiency to finance long-term assets on the balance sheet[321]. - The company has established strategic and operational limits for liquidity risk management, approved by the Board of Directors and Executive Committee[320]. - The company has a cash flow projection process for the next 12 months, ensuring consistency and integrity of the database for liquidity management[319]. - Operational risk management includes monitoring for losses arising from internal process failures or external events[322]. - The company has a corporate crisis management process to identify and respond to incidents and crises, ensuring operational resilience[333]. Financial Performance - Total revenue from financial intermediation in the banking segment for 2024 was R$169.7 billion, an increase from R$164.1 billion in 2023[373]. - Net income for the banking segment in 2024 reached R$9.9 billion, compared to R$6.0 billion in 2023, reflecting a significant growth[373]. - The company managed R$1.2 trillion in assets, with R$552.7 billion managed through its subsidiary BEM DTVM, maintaining a strong position in asset management[374]. - The insurance segment generated total revenues of R$121.0 billion in 2024, with a market share of 22.9% in the Brazilian insurance market[374]. - The company achieved revenues of R$240.07 billion in 2024, with 96.3% generated in Brazil and 3.7% from overseas operations[478]. Client Base and Market Position - The client base expanded to 73.2 million as of December 31, 2024, emphasizing the company's commitment to financial inclusion[375]. - As of December 31, 2024, Bradesco had 38.2 million account holders, including 36.4 million individuals and 1.8 million companies[400]. - The bank operates a segmented business structure to provide tailored services to clients, including Corporate, Large Corporate, and Ultra Corporate segments, targeting companies with annual revenues ranging from R$50 million to over R$5 billion[380]. - Bradesco Global Private Bank offers a differentiated portfolio of local and international investments, with exclusive services in Miami and Luxembourg[387]. - Bradesco Prime focuses on high-income clients, providing customized investment opportunities and a dedicated customer service model[390]. Innovation and Technology - The company conducted 56 Demodays and engaged over 27,000 people through more than 500 events for the innovation ecosystem[369]. - The company finalized 55 experiments in emerging technologies, including Generative AI and Quantum Computing, showcasing its focus on innovation[366]. - The company was recognized as one of the top 100 Corporate Startup Stars for best practices in open innovation[366]. - The company employs models for decision-making, financial reporting, and regulatory compliance, enhancing efficiency and reducing costs[340]. Loan and Credit Management - As of December 31, 2024, the total portfolio of loans and advances to customers reached R$720,239,586 thousand, an increase from R$629,686,699 thousand in 2023, representing a growth of 14.4%[402]. - The net loans and advances to customers after expected credit losses were R$672,382,105 thousand, up from R$579,501,819 thousand in 2023, indicating a year-over-year increase of 16.1%[402]. - The company disbursed R$11.4 billion in BNDES/Finame onlending in 2024, with 63.8% allocated to micro, small, and medium-sized enterprises[413]. - The vehicle loans portfolio grew in 2024, attributed to changes in approval policies and economic recovery, maintaining its position among the main portfolios in the Brazilian market[415]. - The average term for personal loans is 61 months, with interest rates ranging from 1.6% to 3.1% per month as of December 31, 2024[418]. Digital Transformation - In 2024, the company recorded over 7.3 billion transactions via Pix, showcasing significant digital transaction growth[439]. - The number of individual clients purchasing products through digital channels represented 88% of the total in 2024, reflecting a strong shift towards digitalization[499]. - Digital channels accounted for 99% of transactions performed at Bradesco in 2024, with Mobile and Internet Banking representing 95% of this total[514]. - The Mobile App had 27.8 million active individual clients as of December 31, 2024, reflecting an increase of 1.9 million clients from December 2023[515]. Insurance and Pension Plans - Income from insurance, pension plans, and capitalization bonds reached R$18.8 billion in 2024, up from R$16.8 billion in 2023, representing a growth of 11.5%[486]. - Bradesco Vida e Previdência accounted for 23.2% of pension plans in terms of contributions and 22.1% of all pension plan assets under management as of December 31, 2024[502]. - The total assets of the insurance, pension plans, and capitalization bonds segment were R$451.8 billion as of December 31, 2024, an increase from R$409.4 billion in 2023[486]. - Bradesco Auto/RE had 1.5 million insured automobiles and 1.7 million property and casualty policies as of December 31, 2024, making it one of Brazil's main insurance companies[496]. Investment Management - The company has 1,787 investment funds and 458 managed portfolios, serving approximately 3.5 million investors as of December 31, 2024[451]. - The total equity of investment funds managed by the company increased from R$659,218,034 thousand in 2023 to R$781,155,739 thousand in 2024[449]. - As of December 31, 2024, Bradesco managed a total of R$1.2 trillion in shareholders' equity for investment funds under fiduciary management[469]. Corporate Governance and Compliance - The Bradesco Integrity Program includes measures to prevent, detect, and remedy acts of corruption and bribery, ensuring compliance with ethical standards[352]. - Cybersecurity risk management is in place to address potential cyber incidents that could compromise critical business processes[328]. - The company maintains relationships with approximately 806 correspondent banks abroad, with 81 offering credit/guarantee lines as of December 31, 2024[407].

Banco Bradesco (NYSE: BBD ) (NYSE: BBDO ) reported 4Q24 results with very little to like in comparison to peers. The bank continues to lag behind peers in loan growth, NII lags loans, and expenses grow above NII and fees. KeyLong-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the comp ...

Financial Data and Key Metrics Changes - The net income for Q4 2024 was BRL 5.4 billion, representing a growth of 37%, while the total net income for 2024 reached BRL 19.6 billion, indicating a 20% growth [9][71] - Total revenue exceeded BRL 32 billion, growing by 7.9% year-on-year, with net interest income (NII) increasing by 5.4% year-on-year [15][77] - The total loan portfolio grew to over BRL 980 billion, marking an almost 12% year-on-year increase [17][79] Business Line Data and Key Metrics Changes - Insurance sales increased by 49%, and the assets under management (AUM) reached BRL 122 billion [12][74] - Fee and commission income grew by 7.9% year-on-year, contributing to the overall revenue growth [15][31] - The payroll loan segment grew by 5.8%, with Bradesco holding a 14.3% market share in payroll deductible loans [20][83] Market Data and Key Metrics Changes - The customer base expanded by over 2 million clients, with 99% of transactions occurring through digital channels [11][73] - The loan portfolio for micro, small, and medium-sized companies grew by 28% during the period [18][80] - The insurance business reported a net income of BRL 2.5 billion for the year, with a return on average equity (ROAE) of 21% [38][100] Company Strategy and Development Direction - The company is focusing on a cautious growth strategy for 2025, considering the macroeconomic scenario while remaining optimistic about its operational performance [4][62] - A transformation plan is underway, emphasizing efficiency gains and increased activities across all business lines [7][69] - The company is investing in technology modernization and enterprise agility, with a dedicated team of over 10,000 people [54][116] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, indicating a potential impact on growth due to monetary policy changes [62][64] - The company is committed to controlling its risk appetite and maintaining a high-quality loan portfolio [26][89] - Despite a cautious outlook, management remains confident in the bank's ability to grow profitability and revenues [65][66] Other Important Information - The company completed the acquisition of a 50% stake in John Deere and closed the capital of Cielo, enhancing its market position [14][75] - A share buyback program is in place, with approximately 50 million shares repurchased [104] - The company is actively working on integrating generative AI into its operations to enhance customer experience and operational efficiency [49][55] Q&A Session Summary Question: What is the outlook for the company's growth in 2025? - The company is working with two scenarios for 2025: a base scenario of 70% and a more cautious scenario of 30%, reflecting the current economic conditions [62][64] Question: How is the company managing its risk appetite? - The company is continuously regulating its risk appetite and focusing on maintaining a high-quality loan portfolio [26][89] Question: What are the key drivers of revenue growth? - Revenue growth is driven by increased activity levels across all business lines, with significant contributions from fee and commission income and insurance sales [31][15]

earnings release 4Q24 Profitability continues to grow in a solid and safe way, driven by revenues R$5.4 bi 4Q24 recurring net income 4Q24 vs. 3Q24 (q/q) 4Q24 vs. 4Q23 (y/y) 3.4% 87.7% ROAE 12.7% R$19.6 bi 2024 2024 vs. 2023 20.0% 0.3 p.p. (q/q) 5.8 p.p. (y/y) Note: Net non-recurring provision for restructuring R$443 million 2 2 Expanding customer base: +2.1 mi in 2024 99% of transactions are carried out on digital channels 27.5 mi monthly transactions +103% Payroll-deductible loan concession +49% insurance ...

Group 1 - Investors in Banco Bradesco S.A. should monitor the stock due to significant movements in the options market, particularly the Mar 21, 2025 $1 Call which has high implied volatility [1] - Implied volatility indicates the market's expectation of future price movement, suggesting potential for a significant rally or sell-off [2] - Banco Bradesco currently holds a Zacks Rank 4 (Sell) in the Banks - Foreign industry, which is in the bottom 34% of the Zacks Industry Rank, with a recent decrease in the Zacks Consensus Estimate from 10 cents to 9 cents per share over the last 60 days [3] Group 2 - The high implied volatility for Banco Bradesco may indicate a developing trade opportunity, as options traders often seek to sell premium on such options to capture decay [4]

Group 1 - The initial thesis on Bradesco was bearish, highlighting it as the Brazilian player with the worst efficiency among its peers and the highest default rates [1] - The analysis is conducted by a researcher and operations manager at DM Martins Research, who has experience contributing to various financial platforms [1] - The focus of the analysis is on providing insights into foreign equities, particularly in emerging markets, to aid informed investment decisions [1] Group 2 - The analyst has a beneficial long position in shares of NU, ITUB, and BBD through stock ownership, options, or other derivatives [2] - The article expresses the analyst's own opinions and is not influenced by compensation from any company mentioned [2] - There is no business relationship with any company whose stock is discussed in the article [2]

Group 1 - Banco Bradesco reported disappointing 3Q24 results, indicating a loss of market share and increasing funding costs [1] - The bank's profit margins are decreasing while operational costs are rising, despite a shrinking loan book [1] - The company's insurance operations are also underperforming, contributing to the overall negative outlook [1]

Banco Bradesco S.A. (NYSE:BBD) Q3 2024 Earnings Conference Call October 31, 2024 9:30 AM ET Company Participants Marcelo Noronha - CEO Andre Carvalho - IR Cassiano Scarpelli - Director Vice President Andre Rodrigues Cano - Executive Vice President Ivan Gontijo - CEO, Bradesco Seguros SA Conference Call Participants Eduardo Rossman - BTG Renato Meloni - Autonomous Yuri Fernandes - JP Morgan Thiago Batista - UBS Daniel Vaz - Safra Mario Piery - Bank of America Pedro Leduc - Itaú Unibanco Eduardo Nishio - Geni ...

Financial Data and Key Metrics Changes - The company reported a net income of BRL4.7 billion for Q2 2024, representing a 12% increase quarter-on-quarter [4] - Net interest income (NII) grew by 2.8% quarter-on-quarter, reaching BRL15.6 billion, with client NII increasing by 5% to BRL15.3 billion [14][15] - The delinquency rate improved, with the non-performing loan (NPL) creation well under control, and the coverage ratio for loans over 90 days reached 170% [16] Business Line Data and Key Metrics Changes - The loan portfolio exceeded BRL912 billion, with a quarter-on-quarter growth of approximately 5% in the wholesale bank and 10.12% in MSMEs [6] - The insurance segment reported a net income of BRL2.2 billion, a 12.7% growth quarter-on-quarter, with a return on equity (ROE) of 22% [21] - Fee and commission revenue grew across various lines, particularly in credit operations (3.5% growth) and asset management (6.4% growth) [17] Market Data and Key Metrics Changes - The company maintained a balanced growth in its loan portfolio across all segments, including SMEs and individuals, with a focus on maintaining good NPL levels [5][7] - The insurance group's technical provisions grew by 2.6% quarter-on-quarter to BRL382 billion, indicating stability in the insurance market [22] Company Strategy and Development Direction - The company is focused on solid and safe profitability growth, emphasizing a balanced loan portfolio and disciplined expense management [30] - There is an ongoing transformation project aimed at enhancing client experience and operational efficiency, including the rollout of new digital platforms [27][28] - The company plans to expand its affluent segment and continue its growth in SMEs, leveraging technology and data analytics for better client engagement [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, indicating that the implicit net income is expected to exceed initial guidance [23] - The company is monitoring macroeconomic conditions closely and may adjust its risk appetite accordingly [42] - Management highlighted the importance of maintaining a strong client base while transitioning to a more digital-focused service model [62] Other Important Information - The company is investing in technology and data science to enhance its credit selection and portfolio management processes [26] - A new officer with extensive experience in transformation projects will join the technology team to further support the company's strategic initiatives [32] Q&A Session Summary Question: Guidance and Market NII Expectations - Management clarified that the guidance was reinforced despite lower market NII expectations, indicating improved implicit net interest income [35][36] Question: Risk Appetite and Variable Remuneration Changes - Management stated that the risk appetite remains moderate, with a focus on quality growth, and explained the new variable remuneration structure based on individual performance [41][43] Question: ROE and Insurance Impact from Events in Rio Grande do Sul - Management acknowledged that the bank is progressing faster than anticipated towards achieving ROE close to capital by 2026, and confirmed that the impact from recent events has been fully provisioned [46][48] Question: Growth in High-Income Segments - Management confirmed substantial growth in mid and high-income segments while maintaining a cautious approach towards low-income clients [50][52] Question: Cost of Deposits and Competitive Landscape - Management discussed measures taken to optimize funding costs and improve deposit rates, emphasizing the importance of both assets and liabilities in profitability [55][57] Question: Client Migration and Transformation Experience - Management highlighted the careful approach taken during client migration to digital platforms, ensuring quality service while increasing operational efficiency [60][62]

P bradesco earnings release | --- | --- | --- | --- | |--------------------------------------------------------------------------------------|---------------------|------------------------------------|-------| | | | | | | operational | | | | | performance | | | | | R$4.7 bi 2Q24 recurring net income 2Q24 vs. 1Q24 (q/q) 12.0 % 4.4 % ROAE 11.4% | 2Q24 vs. 2Q23 (y/y) | R$8.9 bi 1H24 1H24 vs. 1H23 1.5 % | | | | | | | Solid and safe profitability growth Evolution of the net NII, driven by client NII and reductio ...