June 4, 2023

Net Profit Down 37%, To R$4.3 Billion, But Exceeding Expectations – Money Times

The 90-day default rate rose 1.9 percentage points to 5.1%. (Photo: Adriano Machado/Bloomberg News)

a Bradesco (BBDC4) he had Net recurring income is R$4.28 billion In the first quarter of 2023, a year-on-year decrease of 37.3%, according to the balance sheet released on Thursday (4).

The market expected a profit of R$3.75 billion, according to a consensus compiled by Bloomberg.

a Return on equity, which measures a bank’s profitability, fell 7.4 percentage points In one year, to 10.6%, the bank reported. already an index 90-day defaults rose 1.9 percentage pointsto 5.1%.

Bradesco’s total financial margin was R$16.6 billion, down 2.4%, while expanded PDD (supply line) financial margin increased by 96.8%, to R$9.5 billion.

“In 12 months, revenue generation from customer margin, provision of services, and insurance operations absorbed higher expenses with PDD due to defaults in the overall sector (both retail and corporate) and an already anticipated increase in operating expenses,” Bradesco highlighted in the earnings release.

The bank reported that the margin with customers increased by 7.3% compared to the first quarter of 2022, driven by the growth of the loan portfolio accompanied by a combination of more profitable products and an increase in the liabilities margin, which affected the average interest rate on 0.2 pages, which changed from 9.7% to 9.9 %.

The total loan portfolio rose 3.8%, to R$642.2 billion, according to Bradesco.

See document issued by Bradesco