Bradesco recorded net income of R$7.041 billion in the second quarter of 2022, which corresponds to a growth of 11.4% compared to the same period last year, and of 3.2% in relation to the immediately previous quarter.
The result was influenced by the expansion of the loan portfolio in the period, which reached R$ 855.4 billion, up 17.7% on an annual basis and 2.5% on a quarterly basis.
Among individual customers, the loan portfolio reached R$341.5 billion, up 19.6% year-on-year and 3.1% on a quarterly basis. The result was driven by categories such as credit card (46.4%) and personal credit (20.9%).
In the corporate portfolio, the volume reached R$ 513.8 billion, an increase of 16.6% in the annual comparison, and of 2.1% in the quarterly comparison. Rural credit (32.1%) and working capital (15.2%) were among the positive highlights.
“In corporate credit, there has been greater demand for short-term operations, such as working capital, in addition to growth in loans to small and medium-sized companies. In individuals, mortgage origination was lower, due to the new level of Selic, but we still grew 17.2% in the last 12 months”, said Octavio de Lazari Junior, president of Bradesco, in a statement.
High delinquency among individuals
The bank’s default rate over 90 days ended June at 3.5%, against 2.5% in June last year, and 3.2% in March this year.
Among individuals, the late payment rate was 4.8%, compared to 3.4% in the same period of 2021, and 4.4% at the end of the first quarter of this year.
Among micro, small and medium-sized companies, default was 3.9%, against 2.6% a year ago, and 3.6% in the previous quarter. Among large companies, delays over 90 days were only 0.1%, against 0.4% in June 2021, and stable in the quarterly comparison.
“Non-payment increased with the normalization of credit conditions, growth in higher-margin lines and some worsening in retail lines. We have made adjustments to our models over the last few quarters, so we should grow at a more moderate pace, while maintaining the profitability of our portfolio”, stated Lazari Junior.
The PDD (Provision for Doubtful Accounts), which indicates the possible losses that the bank may suffer from the non-payment of defaulting customers, totaled R$ 5.3 billion in the second quarter of the year, an increase of 52.4% on an annual and 9.9% at the margin.
ROAE (annualized return on equity), an indicator that measures the profitability of the operation, reached 18.1%, compared to 17.6% in June 2021 and 18.0% in March 2022.
Financial margin, service provision and insurance stand out
According to Bradesco, the financial margin with customers (difference between the cost of money raised by the bank in relation to that charged from customers), revenue from services rendered and the result from insurance were among the highlights of positive contribution to the balance of the second quarter.
Financial margin with customers totaled R$16.9 billion at the end of June, up 25.8% year-on-year and 7.1% on a quarterly basis.
Revenues from services rendered, which include current accounts, card income and administration of funds and consortia, amounted to R$ 8.9 billion, an increase of 6.7% in the annual comparison, and of 4.2% in quarterly.
The result from insurance, pension plans and capitalization, in turn, reached R$ 3.7 billion, an increase of 135.5% against the same period last year, and of 12.8% in the margin.
Operating expenses totaled R$11.5 billion, up 4.9% year-on-year, but down 1.5% in the quarter. The increase in business volume, investments in brand enhancement with advertising and publicity and the expansion of digital business were pointed out by the bank among the main expenses made in recent months.
“We will not deviate from our strategy, even with a scenario that is still likely to be difficult in the second half of the year. We will maintain discipline in cost management and continue to invest in our digital evolution and in the development and expansion of teams”, said the president of Bradesco.
X-ray | Bradesco
Foundation: 1943, in MarÃlia (SP)
Net income in the 2nd quarter of 2022: BRL 7.041 billion
Agencies: 2,926
Employees: 88,129
Customers: 75.7 million
Mainly competitors: Itaú Unibanco, Santander, Banco do Brasil, Caixa Econômica Federal
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