BBD · Banco Bradesco S.A.

Banco Bradesco delivered strong 1Q26 results with recurring net income rising 16.1% year-over-year to R$6.8 billion, marking the ninth consecutive quarter of growth amid challenging macroeconomic conditions. Revenues surged 14.0% y/y to R$36.9 billion, primarily driven by net interest income up 16.4% y/y to R$20.1 billion, reflecting higher credit volumes, spreads, and a shift toward secured lending like payroll-deductible loans, auto financing, and secured working capital. Client NII grew 16.3% y/y despite calendar effects, with gross NIM expanding to 9.1%. Insurance operations contributed significantly, with income up 20.4% y/y to R$6.4 billion and group recurring net income at R$2.8 billion, supported by premium growth (ex-VGBL) and controlled claims ratios; the introduction of Bradsaúde consolidates healthcare assets for enhanced scale. Fee and commission income rose 6.2% y/y, highlighted by consortia, custody, brokerage, and asset management. Expenses with expanded loan loss provisions increased 26.5% y/y to R$9.7 billion due to specific large corporate provisions and legacy rural credit deterioration, yet delinquencies remained controlled at 4.2% over 90 days, with over 100% Stage 3 coverage and declining restructured loans. Operating expenses declined 7.8% y/y to R$16.2 billion (personnel steady ex-profit sharing, administrative down in footprint categories), driving cost-to-income ratio improvement to 46.9%. The expanded loan portfolio reached R$1,090 billion, up 8.4% y/y, with individuals +9.5% and companies +7.6%; funding grew 14.6% y/y to R$2.2 trillion. Management emphasized accelerated GenAI transformation for productivity, 28 million digital clients, cultural evolution, and 89% progress toward R$450 billion socio-environmental financing target by 2026. Capital ratios stayed above thresholds post-regulatory changes and Bradsaúde benefits, with R$4 billion interest on shareholders' equity allocated.