Bradesco recorded recurring net income of R$ 26.215 billion in 2021, an annual record in the history of the bank founded in 1943, according to a balance sheet released this Tuesday (8).
”The balance sheet was solid and shows our commercial strength, especially in digital channels, which are increasingly preponderant in the balance sheet”, said Bradesco’s executive president, Octavio de Lazari Jr., in a note.
“The economy recovered with the cooling of the pandemic and we were able to act with a new business perspective.”
Considering only the fourth quarter of last year, the profit was R$ 6.613 billion, which represents a drop of 2.8% compared to the same period of the previous year, and of 2.3% compared to the third quarter.
“In the quarter, there was maintenance of profit at high levels, with good performance of all revenues, mainly insurance operations, absorbing the increase in operating expenses and costs with PDD [provisão para devedores duvidosos]due to the significant growth of the loan portfolio and change in the portfolio mix, with emphasis on operations with individuals and micro, small and medium-sized companies, segments that demand greater provisions”, says the bank in the balance of results.
The loan portfolio ended December at R$812.7 billion, an increase of 18.3% in 12 months and 5.1% in the quarter.
“Growth in practically all products (Individuals and Businesses), with emphasis on credit card operations, personal and payroll loans, real estate financing, rural credit, guaranteed account and CDC, which grew double digits”, says the bank.
For 2022, Bradesco released a projection for growth of the loan portfolio between 10% and 14%.
Bradesco’s insurance, pension plan and capitalization operations resulted in a profit of R$3.527 billion in the fourth quarter, up 54.6% year-on-year and 9.8% from the immediately previous quarter. In 2021, the operation generated a profit of BRL 11.451 billion, down 5.5%.
The default rate over 90 days went from 2.2% in December 2020, and from 2.6% in September 2021, to 2.8% at the end of last year.
Provisions for doubtful accounts (PDD) reached R$ 4.283 billion, which corresponds to an increase of 27.5% in the quarterly comparison, but a decrease of 6.2%, on an annual basis.
The return on equity (ROAE), an indicator that measures the profitability of the bank’s operation, dropped to 17.5% in December 2021, from 18.6% at the end of the third quarter, and 20% in the same period of the year previous. In the 12-month period, Bradesco’s ROAE was 18.1%, compared to 14.8% in the same period in 2020.
Regarding the economic scenario, Lazari said that 2021 was characterized by sudden changes throughout the year.
“In January, the inflation forecast was 3.3%, with a Selic of 3%. The reality was a double-digit inflation and a Selic of 9.25%”, he said. “Then came the new strain of coronavirus, very contagious, but vaccination protected us.”
“Looking in the rearview mirror, the decision to double down on digital transformation, focusing on customer experience and absolute cost control, while adopting a strong provisioning policy was appropriate,” said the executive.
In 2021, digital channels were responsible for 98% of the total transactions carried out by the bank’s customers. The production of credit by digital means corresponds to around 30% of the portfolio.
“Our purpose [em 2022] will be to deliver another healthy and relevant balance sheet. There are new risk factors to consider, we cannot have expectations in relation to GDP, but it will be a navigation in known, tangible terrain and over which we maintain a reasonable level of control. We are realistic, the scenario is adverse, but we know how to sail against the wind and we have safe instruments to deal with it”, said the president of Bradesco.
X-RAY | BRADESCO
Foundation 1943, in Marília (SP)
Net profit in 2021 BRL 26.2 billion
agencies 2,947
Employees 87,274
Customers 74.1 million
Mainly competitors Itaú Unibanco, Santander, Banco do Brasil, Caixa Econômica Federal
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