Bradesco Posts 16.2% Net Income Growth, Exceeds ROE Expectations a Quarter Early
Brazil's Banco Bradesco reported Q2 net income of BRL 7.1 billion and 16.2% ROE, surpassing market projections as secured lending drove an 11.6% loan portfolio expansion.
Strong Earnings Beat Market Timeline
Banco Bradesco S.A. reported net income of BRL 7.1 billion for the second quarter of 2026, representing 16.2% year-over-year growth and 3.5% quarter-over-quarter expansion, CEO Andre Carvalho announced during the bank's earnings call (earnings call, 2026-08-06). The bank achieved a return on equity of 16.2%, reaching a threshold "higher than what the market expected because the market expected that we would reach 16% ROE in the last quarter of this year" (earnings call, 2026-08-06).
The loan portfolio expanded to BRL 1.137 trillion, posting 11.6% year-over-year growth driven by what Carvalho described as "commercial traction in all business segments, in all business lines, no exception" (earnings call, 2026-08-06).
Secured Lending Drives Portfolio Mix Shift
Bradesco's growth strategy centered on government-guaranteed and collateralized credit lines. The bank captured 21.6% market share in FGI and FGO (government guarantee programs) origination, claiming the number one position with a 52.7% increase in Q2 versus Q1 2022 (earnings call, 2026-08-06). For retail and SME clients earning up to BRL 2 million annually, the FGI/FGO portfolio grew 64.5% year-over-year (earnings call, 2026-08-06).
The SME segment posted particularly robust expansion at 16.1% year-over-year and 5.1% quarter-over-quarter, adding BRL 37 billion to the portfolio annually (earnings call, 2026-08-06). Large corporates grew 12.7% year-over-year, while individuals expanded 8.4% (earnings call, 2026-08-06).
Asset Quality Outperforms Market Benchmarks
Carvalho emphasized the bank's credit discipline across product categories. In vehicle financing, where Bradesco grew 26.8% year-over-year and holds leadership positions in light vehicles and used vehicles, the bank maintains approximately 1% cost of risk (earnings call, 2026-08-06).
For payroll loans, which expanded 9.3% with 88% growth in the private sector segment, Bradesco's overall delinquency rate of 2.5% compared favorably to the market's 3.3%. In private payroll specifically, the bank's 4.7% NPL ratio contrasted with 8.9% for the market excluding Bradesco (earnings call, 2026-08-06).
In agribusiness, where the portfolio grew nearly 25% year-over-year, the bank's over-90-day NPL improved from 5.0% to 4.6% between March and June, while the broader market deteriorated from 7.3% to 7.6% (earnings call, 2026-08-06). Bradesco's share of court reorganization cases stands at 3.5% despite holding approximately 12% market share in Brazilian agribusiness (earnings call, 2026-08-06).
Wholesale Banking and Strategic Positioning
The wholesale bank contributed to growth through structured transactions, including "two operations that we did, one in agribusiness, which was in M&A with a AAA client" that together generated BRL 6 billion (earnings call, 2026-08-06). Bradesco holds 64% market share in aviation leasing for the first quarter (earnings call, 2026-08-06).
Carvalho noted the bank maintains weekly portfolio reviews with risk-adjusted return assessments: "Last week, we looked at two other portfolios. So we are constantly looking at that, and we make finding and make adjustments" (earnings call, 2026-08-06).
According to MarginX data, Bradesco is scheduled to present at the XP CEO Conference on August 17, 2026, and Citi's GEMS Conference on September 8, 2026.
This article was generated by MarginX from the earnings call on 2026-08-06. It is not investment advice.