Business Context and Reporting Period
This Form 6-K filing by Banco Bradesco S.A. (Bank Bradesco) covers the fourth quarter and full year ended December 31, 2025. The report details the bank's financial performance, strategic transformation progress, and outlook for 2026. Bradesco emphasizes a strategy of sustainable growth, controlled credit costs, and continued investment in organizational transformation to enhance operational efficiency and customer-centricity.
Key Financial Metrics
| Metric | 4Q25 Value | 12M25 Value | YoY Change (12M) |
|---|---|---|---|
| Recurring Net Income | R$6.5 billion | R$24.7 billion | +26.1% |
| Return on Equity (ROAE) | 15.2% | N/A | +2.5 p.p. (vs 4Q24) |
| Total Revenues | R$36.1 billion | N/A | +9.8% (4Q vs 4Q24) |
| Net Interest Income (NII) | R$19.2 billion | R$73.2 billion | +14.9% (12M) |
| Fee and Commission Income | R$11.1 billion | R$41.8 billion | +8.9% (12M) |
| Expanded Loan Portfolio | R$1.089 trillion | N/A | +11.0% (vs Dec 24) |
| Cost of Credit | 3.2% | 3.1% (Annualized) | Stable |
| Delinquency Ratio (>90 days) | 4.1% | N/A | Stable |
| Efficiency Ratio | Improved 2.2 p.p. | N/A | N/A |
| Tier 1 Capital Ratio | 13.2% | N/A | +0.8 p.p. (vs Dec 24) |
| Common Equity Ratio | 11.2% | N/A | +0.7 p.p. (vs Dec 24) |
Material Changes vs. Prior Period
- Profitability Surge: Full-year 2025 net income grew 26.1% to R$24.7 billion, driven by strong revenue expansion and controlled credit costs. The bank achieved eight consecutive quarters of profitability growth.
- Revenue Growth: Total revenues for 4Q25 rose 9.8% year-over-year. Net Interest Income expanded 13.2% YoY, fueled by an 11.0% growth in the loan portfolio and improved funding margins. Fee and commission income grew 8.0% YoY, with standout performance in capital markets and card income.
- Asset Quality: The delinquency ratio (over 90 days) remained stable at 4.1%. The restructured portfolio decreased by R$2.4 billion quarter-over-quarter and R$10.5 billion year-over-year. Stage 3 operations declined, contributing to a cost of credit reduction to 3.2% in 4Q25.
- Expense Management: Operating expenses rose 8.5% for the full year, partly due to transformation investments and profit-sharing increases. However, the efficiency ratio improved by 2.2 percentage points due to revenue outpacing expense growth.
- Insurance Performance: Bradesco Seguros reported a 16.1% increase in income for 2025, with a claims ratio improvement of 3.8 percentage points.
Guidance, Outlook, and Risks
2026 Guidance
- Loan Portfolio Growth: Projected between 8.5% and 10.5% (actual 2025 growth was 11.0%).
- NII Net of Provisions: Estimated between R$42 billion and R$48 billion.
- Fee and Commission Income: Expected growth of 3% to 5%.
- Operating Expenses: Projected increase of 6% to 8%.
- Insurance Income: Forecasted growth of 6% to 8%.
Management Commentary
Management expects profitability to evolve through revenue increases in 2026, supported by credit risk control. The bank remains committed to its transformation plan, including digital expansion, branch consolidation, and cultural evolution. Bradesco aims to direct a cumulative R$450 billion to socio-environmental sectors by December 2026.
Risks and Contingencies
- Transformation Costs: Continued investments in technology and infrastructure may temporarily pressure expenses.
- Macroeconomic Factors: Outlook depends on assumptions regarding interest rates (Selic), inflation (IPCA), and GDP growth.
- Contingencies: The bank maintains provisions for civil, labor, and tax contingencies, which fluctuate based on legal outcomes.
Investor Verification Checklist
- Verify the sustainability of the 26.1% net income growth against the projected 3-5% fee income growth for 2026.
- Monitor the cost of credit trend to ensure it remains below 3.3% as the loan portfolio expands.
- Assess the impact of continued transformation investments on the efficiency ratio in 2026.
- Review the restructured portfolio reduction trajectory to confirm asset quality stability.
- Confirm the execution of the R$450 billion socio-environmental financing target by end of 2026.