By Brazil Stock Guide — Bradesco, one of Brazil’s largest private-sector banks, reported recurring net income of R$7.1 billion in the third quarter of 2026, up 14.6% from a year earlier and 0.8% from the previous quarter. Recurring return on average equity (ROAE) reached 16.1%, excluding the impact of the bank’s recent capital increase.
The performance was supported by higher net interest income, growth in fee-based revenue and disciplined operating expenses.
Total revenue reached R$38 billion, an 8.4% increase year over year. The bank’s operating efficiency ratio improved to 45.4%, down 4.7 percentage points from a year earlier, as revenue growth outpaced operating costs.
Total net interest income, before credit-loss provisions, rose 14.2% from the third quarter of 2025 to R$21.4 billion. Net interest income from client operations increased 10.1% to R$20.5 billion, while income from market-related activities reached R$875 million, compared with R$99 million a year earlier, supported by treasury performance and asset-liability management.
Bradesco’s expanded loan portfolio reached R$1.15 trillion at the end of September, an 11.1% increase over 12 months. Corporate lending grew 14.1% to R$664.7 billion, while lending to individuals increased 7.4% to R$484.9 billion.
According to the bank, its lending strategy remains focused on collateral-backed products and risk-adjusted profitability.
Fee and commission income totaled R$10.9 billion, up 4.2% from the previous quarter and 3.1% year over year. Growth was driven by credit cards, asset management, consortia — a widely used Brazilian installment-based financing arrangement — and capital markets and financial advisory activities.
On the cost side, operating expenses totaled R$16.3 billion, down 1% from a year earlier. Personnel and administrative expenses combined reached R$13.1 billion, an annual increase of 1.8%, below inflation. The figures reflect the bank’s continued cost discipline alongside investments in technology and digital transformation.
Credit quality indicators edged higher during the quarter. The ratio of loans overdue by more than 90 days rose to 4.6%, from 4.3% in June. Credit-loss provision expenses reached R$10.6 billion, up 6.6% quarter over quarter.
Bradesco attributed part of the increase to higher delinquency in working-capital loans to small and medium-sized businesses backed by federal government guarantee funds, as well as seasonal effects in certain loan portfolios.
Bradesco Seguros, the bank’s insurance arm, continued to make a significant contribution to consolidated earnings, posting net income of R$2.9 billion in the quarter, up 14.1% year over year. Its return on average equity reached 22%.
Within the insurance business, the health segment reported net income of R$982 million, an 11.2% increase from the third quarter of 2025.
Bradesco also completed a R$10 billion capital increase, approved by Brazil’s Central Bank in October, aimed at strengthening its balance sheet and supporting strategic investments. Its Common Equity Tier 1 (CET1) capital ratio reached 12.1% in September, while its total Basel capital adequacy ratio stood at 16%.
For the first nine months of 2026, recurring net income totaled R$21 billion, up 15.6% from the same period a year earlier. Reported net income reached R$19.2 billion, reflecting nonrecurring charges primarily related to tax matters.
The third-quarter results mark a continuation of Bradesco’s earnings growth and operating efficiency improvements. Looking ahead, the bank remains focused on selective loan growth, revenue diversification and technology investments, while closely monitoring economic conditions and credit risk indicators.
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