Banco Bradesco Sa American Depositary Shares
BBD · NYSE
Next quarter
Expected to report Feb 5, 2027 — estimated from last year’s reporting date.
Consensus is $0.12 EPS for Dec 2026 across 2 estimates, ranging $0.10 to $0.13.
BBD Sep 2026
- 7.69%
- +3.04%
- $0.13
- $0.12
- —
- —
Highlights
- EPS miss: Third-quarter EPS was 0.12 versus consensus of 0.13, a 7.69% shortfall.
- Loan growth: The loan portfolio reached BRL 1.15 trillion, up 11.1% year over year and 1.1% quarter over quarter, with growth directed toward selected risk-appetite segments.
- Credit quality: Loans more than 90 days delinquent rose to 4.6% from 4.3% in the prior quarter; management attributed about half of the 30-basis-point increase to FGI/FGO-guaranteed lending and cited roughly 10 basis points of seasonality at John Deere Bank.
- Net interest income: NII rose 14% year over year and 2.4% quarter over quarter, while portfolio mix—including faster growth in large corporates—pressed the margin.
- Business mix: Large-corporate lending grew 14.8% year over year, while Bradesco expanded guaranteed SME lending by about 31% and reduced unsecured SME working-capital exposure.
- Capital: Shareholders approved a BRL 10 billion capital increase; CET1 was 12.1% and Tier 1 capital was 13.7%.
- Digital transformation: More than 45 million clients had migrated to digital wholesale service; BIA handled over 15 million interactions, answering about 90% of queries.
- Insurance: The insurance group reported a 22% ROE, with technical provisions of almost BRL 480 billion, up year over year.
Analysis
Bradesco’s third quarter combined loan and revenue growth with a modest EPS miss and continued credit-cost pressure. EPS of 0.12 was below the 0.13 consensus estimate by 7.69%; the supplied materials do not give a comparable year-ago or prior-quarter EPS. The loan portfolio reached BRL 1.15 trillion, increasing 11.1% from a year earlier and 1.1% from the prior quarter. NII advanced 14% year over year and 2.4% sequentially, but the bank said its large-corporate growth diluted portfolio margin; management emphasized that those short-duration corporate relationships also generate services, treasury and investment-banking revenue.
Asset quality was the main counterweight. The over-90-day NPL ratio rose to 4.6% from 4.3% in the prior quarter. Management attributed roughly half of that 30-basis-point rise to FGI/FGO-guaranteed loans and about 10 basis points to seasonal effects at John Deere Bank, while acknowledging pressure in some unsecured consumer, card and agricultural portfolios. Bradesco is steering growth toward selected, often collateralized lending: large-corporate credit rose 14.8% year over year and guaranteed SME lending about 31%. The quarter also featured a BRL 10 billion capital increase and continued digital migration, with more than 45 million clients served through digital wholesale channels.
Credit quality
The over-90-day NPL ratio reached 4.6%, up from 4.3% in the second quarter. Management said about half of the 30-basis-point sequential increase came from FGI/FGO-guaranteed credit, whose expected loss is lower than that of unsecured lending, and cited nearly 10 basis points of seasonal impact from John Deere Bank. It expects the guarantee portfolios to keep affecting delinquency measures until their cohorts mature; management suggested an inflection could emerge in the second or third quarter of 2027. It also noted pressure in personal loans and credit cards, as well as some agricultural credit.
- Market context: Bradesco cited a 4.6% September NPL ratio versus 5% for the national financial system in August; the periods differ, so this is not a same-month comparison.
- Coverage: The bank said 72% of its individual loans were secured. Stage-three coverage for the FGI/FGO portfolio was 105% when that portfolio was considered separately.
Loan portfolio mix
Bradesco’s BRL 1.15 trillion loan book grew 11.1% year over year and 1.1% sequentially. The bank stressed that it is pursuing growth where it has appetite and changing the mix rather than expanding all credit lines equally. Large corporates were a particularly important contributor, while the bank continued to build guaranteed lending to small and medium-sized businesses and curtail unsecured exposure.
- Large corporates: Lending grew 14.8% year over year; the portfolio stood at BRL 341 billion, after adding more than BRL 50 billion over the year.
- SMEs: FGI/FGO-backed lending grew about 31% year over year, while unsecured SME working-capital credit was down 11.4% year over year.
- Consumer lending: Private payroll loans grew 102% year over year, and vehicle lending grew nearly 27%; Bradesco said it was reducing personal-loan exposure and applying more measured risk appetite to cards.
Net interest income
NII grew 14% year over year and 2.4% quarter over quarter, supported by growth across assets, liabilities and treasury activity. The bank said large-corporate growth weighed on the reported margin because those loans carry a different mix and yield; management estimated that, without the additional BRL 50 billion of large-corporate lending, margin would have been higher. It argued that the mix should be assessed alongside total revenue, including treasury, services and investment-banking income generated by corporate relationships. Higher credit costs, however, continued to weigh on NII after provisions. Management said the full-year NII guidance of BRL 42 billion to BRL 48 billion remained on track, while describing results as toward the lower end of that range.
Fees and insurance
Fee income and insurance were additional sources of revenue growth, although the call did not quantify total fee growth. Bradesco pointed to custody and brokerage, investment banking and consortium activity, while noting that checking-account and collections income remained weaker contributors. The insurance group delivered a 22% ROE; premiums were growing, and technical provisions approached BRL 480 billion, up year over year. Management highlighted Bradsaúde and the bank’s distribution channels as contributors to insurance momentum.
Efficiency and capital
Management described operating-expense improvements as structural rather than one-off, citing procurement, technology contracts, processing productivity and a continuing review of the branch footprint. The bank is still investing in its transformation, so expenses are not simply being cut; management expects a further 40 basis points of efficiency over the next two to three years. Shareholders approved a BRL 10 billion capital increase, and Bradesco reported CET1 of 12.1% and Tier 1 capital of 13.7%, which management said supported continued investment.
Digital migration
Bradesco said more than 45 million clients had migrated to digital wholesale service as it shifts routine interactions away from branches. BIA recorded more than 15 million interactions, answering about 90% of queries; around 10% to 12% of contacts were transferred to a human agent. In its higher-income offering, Principal had 93 offices and more than 500,000 clients in September. Prime had 4.5 million clients at quarter end, with management expecting around 4.6 million by year end.
