Summary of BBD Q3 2025 Earnings Call

1Key Financial Results and Metrics

Recurring Net Income:: BRL 6.2 billion, up 2.3% year-on-year, with a return on equity (ROE) of 14.7%.

Total Revenue:: BRL 30 billion, a 13.1% increase year-on-year.

Net Interest Income (NII):: Grew nearly 4%, with client NII increasing by 19% year-on-year.

Loan Portfolio:: Reached BRL 1.34 trillion, up 9.6% year-on-year, with a focus on secured lines and significant growth in micro and SMEs (25% year-on-year).

Delinquency Rates:: Remained under control, with a slight increase in over-90-day NPLs primarily attributed to a specific case related to John Deere.

2Strategic Updates and Business Highlights

Transformation Plan:: Continued execution with a focus on profitability and operational efficiency.

Insurance Group Performance:: ROAE over 21%, with total earnings growing 13% year-on-year.

Footprint Adjustment:: Accelerated beyond expectations, with a reduction in service points leading to improved operational efficiency.

Technology Investments:: Significant advancements in GenAI, resulting in a 109% increase in productivity.

Customer Engagement:: Over 14 million fully digital customers, with ongoing efforts to enhance customer experience and engagement.

3Forward Guidance and Outlook

Loan Portfolio Growth:: Expected to continue between 7% and 8% for the upcoming year, with a focus on maintaining risk-adjusted returns.

NII Guidance:: Anticipated to remain stable, with potential for improvement as the cost of funding decreases.

Efficiency Ratio:: Targeting a reduction of 10 percentage points over the next three years.

Insurance Growth:: Expected to maintain strong performance, particularly in health and life insurance segments.

4Bad News, Challenges, or Points of Concern

Credit Quality Concerns:: A slight increase in delinquency rates for individuals, primarily due to specific corporate cases, raises questions about future credit performance.

Market Share Stability:: Despite growth, market share in loans remains stable, with cautious risk appetite impacting aggressive growth strategies.

Labor Provisions:: Increased labor provisions due to footprint adjustments may pressure operating expenses in the short term.

Economic Environment:: The current economic landscape, characterized by high interest rates and a decelerating economy, presents ongoing challenges for growth.

5Notable Q&A Insights

Cost Control:: Management emphasized that operational expenses are under control, with a focus on maintaining efficiency despite higher provisions.

Risk Appetite:: While cautious, management indicated a willingness to pursue growth opportunities in secured lines and payroll loans, particularly as delinquency rates stabilize.

Market Dynamics:: The conversation highlighted the importance of adapting to market conditions, with a focus on maintaining profitability while navigating economic pressures.

Cielo and Elopar Performance:: Discussions around Cielo's strategic position and its integration with Bradesco's services indicated ongoing efforts to enhance competitiveness in the payments sector. Overall, BBD's Q3 2025 results reflect a solid performance amidst a challenging economic backdrop, with a clear focus on strategic growth, efficiency, and risk management.