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]

Financial Data and Key Metrics Changes - The company reported a recurring net income of R$5.2 billion, an increase of almost 11% compared to Q2 2024, following a growth of over 12% in the previous quarter [3][4] - Total revenue for the quarter reached R$30.6 billion, reflecting a quarter-on-quarter growth of 3.7% [6][7] - Net interest income (NII) grew by 2.7% quarter-on-quarter, while fee and commission income increased by 2.8% [7][8] Business Line Data and Key Metrics Changes - The loan book expanded to nearly R$944 billion, growing 3.5% quarter-on-quarter, with significant growth in small and medium-sized enterprises (SMEs) at almost 17% [8][9] - The insurance group delivered a return on equity (ROE) of approximately 24%, with growth across nearly all lines [5][42] - The company experienced a 5.9% growth in consumer credit quarter-on-quarter, focusing on high-margin personal loans [15][16] Market Data and Key Metrics Changes - The company reported a 3.9% quarter-on-quarter growth in loans to individuals, with payroll deductible loans growing by 2% compared to a market growth of 1.9% [11][12] - The delinquency ratio is decreasing, indicating improved credit quality and lower provisions required for new vintages [33][66] Company Strategy and Development Direction - The company is focusing on risk-adjusted returns (RAR) as a guiding principle for decision-making, emphasizing the importance of maintaining a high-quality credit portfolio [23][51] - A new segment targeting high net worth individuals was launched, enhancing the company's wealth management capabilities [52][60] - The company is investing in technology and digital channels to improve operational efficiency and client experience [84][85] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current economic scenario, projecting GDP growth of around 2% to 2.1% for the next year, with real income growth expected between 2% and 2.5% [67][68] - The company anticipates stable provisions and a growing NII, with expectations for continued growth in fee and commission income and the insurance group [71][72] Other Important Information - The company completed a tender offer for Cielo, which had a slight negative impact on quarterly results but is expected to normalize moving forward [34][35] - The company is expanding its footprint with 1,041 points of sale adjustments, exceeding initial expectations [41] Q&A Session Summary Question: Concerns about loan portfolio growth and profitability - Management acknowledged the importance of maintaining a safe portfolio with the right risk-adjusted return, emphasizing a cautious approach to growth [62][63] Question: Dynamics of client NII and challenges in mass retail - Management clarified that they are not decelerating growth in mass markets and highlighted their leadership position in SME lending [73][74] Question: Update on ROE and cost of capital - Management reiterated their commitment to improving ROE and delivering better returns, despite challenges posed by the higher cost of capital in Brazil [80][81] Question: Investment in technology and impact of interest rates - Management discussed ongoing investments in technology to enhance productivity and the neutral impact of high interest rates on their operations [83][87] Question: Results from recent testing of collateralized credit lines - Management confirmed that they are focusing on risk-adjusted returns and providing clean loans selectively, ensuring sustainable results [89][90]

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 ...

Alfribeiro Investment Thesis I recommend holding Banco Bradesco S.A. (NYSE:BBD) shares. The process of banking digitization and increased competition has hit the bank's results hard, which presents the most depreciated financial indicators in the sector. However, the bank's managers seem to have seen this, even if belatedly, and are making a series of changes to the company's corporate structure, processes, and culture. Despite being cheap, to make an analogy, the bank is a transatlantic ship turning around ...

Banco Bradesco S.A. (NYSE:BBD) Q1 2024 Results Conference Call May 2, 2024 8:30 AM ET Company Participants Marcelo Noronha - CEO Andre Carvalho - IR Ivan Gontijo - Presidente do Grupo Bradesco Seguros Cassiano Scarpelli - Director Vice President Andre Rodrigues Cano - Executive Vice President at Banco Bradesco Conference Call Participants Renato Meloni - Autonomous Brian Flores - Citi Jorge Kuri - Morgan Stanley Mario Pierry - Bank of America Thiago Bovolenta Batista - UBS Tito Labarta - Goldman Sachs Eduar ...

Name of each exchange on which registered American Depositary Shares, or ADSs (evidenced by American Depositary Receipts, or ADRs), each representing 1 preferred share BBD New York Stock Exchange Preferred Shares New York Stock Exchange* American Depositary Shares, or ADSs (evidenced by American Depositary Receipts, or ADRs), each representing 1 common share BBDO New York Stock Exchange Common Shares New York Stock Exchange* *Not for trading, but only in connection with the registration of ADSs pursuant to ...

Banco Bradesco S.A. (NYSE:BBD) Q4 2023 Results Conference Call February 7, 2024 8:30 AM ET Company Participants Marcelo Noronha - CEO Andre Rodrigues Cano - Executive Vice President at Banco Bradesco Cassiano Scarpelli - Director Vice President Carlos Firetti - IRO Conference Call Participants Thiago Bovolenta Batista - UBS Daniel Vaz - Santander Bernardo Guttmann - XP Mario Pierry - Bank of America Tito Labarta - Goldman Sachs Jorge Kuri - Morgan Stanley Eduardo Nishio - Genial Investimentos Rafael Frade ...

Banco Bradesco S.A. (NYSE:BBD) Q3 2023 Earnings Call Transcript November 10, 2023 8:30 AM ET Company Participants Carlos Firetti - Business Controller and Market Relations Director Octavio de Lazari - CEO Cassiano Scarpelli - EVP and CFO Conference Call Participants Renato Meloni - Autonomous Mario Pierry - Bank of America Tito Labarta - Goldman Sachs Rafael Frade - Citibank Daniel Vaz - Safra Thiago Batista - UBS Bernardo Guttmann - XP Eduardo Rosman - BTG Yuri Fernandes - JPMorgan Anahy Rios - Santander P ...

highlights Net Income 4.6 Improvement of the delinquency ratio R$ bn (11.3% ROE) Operating Income | +5.0% q/q +55 bps in Basel Tier I Loan Portfolio Recovery of market net interest income 877.5 R$ bn Decrease in the expanded ALL Delinquency Ratio 90+ -0.1 p.p. Positive performance in fees and commission income Basel Tier I ...