Business Context and Reporting Period
Company: Banco Bradesco S.A. (Bank Bradesco)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Fiscal Year ended December 31, 2025
Reporting Date: February 4, 2026
Accounting Standards: International Financial Reporting Standards (IFRS)
Bradesco operates primarily in the banking and insurance sectors in Brazil. The 2025 fiscal year was characterized by a challenging economic environment with slowing GDP growth in the second half of the year due to restrictive monetary policy. Despite this, the bank maintained operational solidity, expanded its health sector partnerships, and continued its digital transformation strategy.
Key Financial Metrics
| Metric | 2025 (R$) | 2024 (R$) | Change |
|---|---|---|---|
| Net Income (Parent Shareholders) | 23,672,706 | 17,252,900 | +37.2% |
| Net Interest Income | 73,269,592 | 67,454,564 | +8.6% |
| Total Assets | 2,330,327,216 | 2,069,484,362 | +12.6% |
| Total Deposits | 721,274,151 | 644,338,463 | +12.0% |
| Expanded Loan Portfolio | 1,089,200,000 | 981,200,000 | +11.0% |
| Shareholders' Equity | 178,415,153 | 168,409,653 | +6.0% |
| Earnings Per Share (Common) | R$ 2.13 | R$ 1.55 | +37.4% |
| Earnings Per Share (Preferred) | R$ 2.35 | R$ 1.71 | +37.4% |
| Interest on Equity (Gross) | 14,499,273 | 11,283,288 | +28.5% |
Note: All figures in R$ thousands unless otherwise noted. Loan portfolio figures derived from "Expanded Loan Portfolio" highlight section and Note 11.
Material Changes vs. Prior Period
- Profitability Surge: Net income attributable to parent shareholders increased by 37.2% to R$23.7 billion, driven by higher net interest income and improved fee income, despite a challenging macroeconomic backdrop.
- Portfolio Growth: The expanded loan portfolio grew 11.0% year-over-year, with individual loans up 12.7% and corporate loans up 9.7%. Total deposits increased by 12.2%.
- Asset Quality: The allowance for expanded loans decreased by 2.6% to R$56.8 billion, indicating improved credit quality or provisioning efficiency relative to the portfolio size.
- Capital Strength: Tier I Capital ratio stood at 13.2%, and the Basel Ratio was 15.8%, exceeding regulatory requirements. The Liquidity Coverage Ratio (LCR) was 158.3%.
- Dividend Policy: The Board approved a total of R$14.5 billion in interest on equity for 2025, a significant increase from the prior year, reflecting strong earnings.
Guidance, Outlook, and Risks
Management Commentary and Outlook
Management projects weaker GDP growth for 2026 but anticipates deflationary pressures will allow the Central Bank of Brazil to begin cutting interest rates later in the first quarter of 2026. The bank remains committed to its "AI First" strategy, having reduced lead time by 43% and increased delivery volume by 118% compared to 2023. Strategic expansions include deepening partnerships in the health sector (Rede D'Or) and agribusiness (John Deere).
Key Risks and Contingencies
- Legal and Tax Provisions: The bank maintains significant provisions for tax, civil, and labor lawsuits. As of December 31, 2025, provisions totaled R$18.0 billion, with contingent liabilities (possible losses) totaling R$55.7 billion, primarily related to tax disputes (PIS/COFINS, IRPJ/CSLL) and civil claims regarding economic plans.
- Macroeconomic Uncertainty: Risks include global geopolitical disputes, US economic policy uncertainty, and domestic inflation dynamics.
- Regulatory Changes: The implementation of Brazil's Consumption Tax Reform (IBS/CBS) is ongoing. While rates for financial services are set to increase progressively from 2027, the full impact cannot be reliably measured at this stage.
- Insurance Liabilities: Significant sensitivity exists in insurance liabilities regarding discount rates and longevity assumptions, which are monitored via stress testing.
Investor Verification Checklist
- Dividend Payouts: Verify the payment schedule for the R$3.9 billion complementary interest on equity approved in December 2025 (due by July 31, 2026) and the R$3.0 billion interim interest (due by April 30, 2026).
- Legal Exposure: Review the specific status of the R$43.1 billion in tax contingent liabilities, particularly regarding the PIS/COFINS calculation base disputes and the economic plans litigation.
- Interest Rate Sensitivity: Assess the impact of the anticipated Central Bank rate cuts on Net Interest Income (NII) and the Economic Value of Equity (EVE) given the bank's large fixed-rate portfolio.
- Strategic Investments: Monitor the closing conditions and regulatory approvals for the hospital network expansions (Atlântica D'Or) and the John Deere partnership.
- Capital Adequacy: Confirm that the Basel Ratio (15.8%) and LCR (158.3%) remain stable as the loan portfolio expands and interest rates fluctuate.