Bulletin: Banco Bradesco S.A. Reports Better-Than-Expected Second-Quarter Results; Profitability's Recovery Will Gather Pace

SAO PAULO (S&P Global Ratings) Aug. 8, 2024--S&P Global Ratings today said that Banco Bradesco S.A.'s (BB/Stable/B) second-quarter bottom-line results are consistent with the ratings, but were slightly higher than expected. Nonetheless, the return on equity (ROE) recovery to levels closer to some of its competitors should still take some time. Bradesco reported a net income of R$4.7 billion for the second quarter of 2024. In absolute terms, this was the bank's best result since the third quarter of 2022, during which provisions for mass market credit had risen and margins narrowed. Higher net income resulted from slightly better margins, a somewhat lower cost of risk, and still sound results at the insurance unit, which rose in relation to the first

...August 8, 2024 SAO PAULO (S&P Global Ratings) Aug. 8, 2024--S&P Global Ratings today said that Banco Bradesco S.A.'s (##/Stable/B) second-quarter bottom-line results are consistent with the ratings, but were slightly higher than expected. Nonetheless, the return on equity (ROE) recovery to levels closer to some of its competitors should still take some time. Bradesco reported a net income of R$4.7 billion for the second quarter of 2024. In absolute terms, this was the bank's best result since the third quarter of 2022, during which provisions for mass market credit had risen and margins narrowed. Higher net income resulted from slightly better margins, a somewhat lower cost of risk, and still sound results at the insurance unit, which rose in relation to the first quarter. Additionally, asset quality indicators have strengthened across individual, large corporate, and small and midsize entity (SME) loans. However, operational expenses rose, limiting the results' scale of improvement. Bradesco's...

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