BBD · Banco Bradesco S.A.

Banco Bradesco delivered its ninth straight quarter of recurring net income growth, reaching R$6.8 billion in 1Q26, up 16.1% y/y and 4.5% q/q, primarily fueled by total revenue expansion to R$36.9 billion (+14.0% y/y). Net interest income surged 16.4% y/y to R$20.1 billion, with client NII at R$19.5 billion (+16.3% y/y) driven by higher credit volumes and spreads (gross NIM 9.1%), despite calendar effects and product mix shifts toward lower-spread secured lending. Market NII improved to R$553 million. Insurance operations contributed strongly, with income up 20.4% y/y to R$6.4 billion and recurring net income of R$2.8 billion (ROAE 21.6%). Fee income grew 6.2% y/y to R$10.4 billion, highlighted by consortia, custody, brokerage, and asset management. Expenses with expanded loan loss provisions rose 26.5% y/y to R$9.7 billion, reflecting wholesale provisions and legacy rural credit, yet asset quality held with 90+ day delinquency at 4.2% and Stage 3 coverage over 100%. Operating expenses declined 4.6% q/q to R$16.2 billion, with personnel steady ex-profit sharing and admin cuts in footprint costs offset by tech investments, driving cost-to-income to 46.9% (improved 2.8 pp y/y). The expanded loan portfolio reached R$1,090 billion (+8.4% y/y), with individuals +9.5% and secured lending share rising (e.g., payroll-deductible +8.3% y/y, vehicles +25.4% y/y). Funding grew 14.6% y/y to R$2.2 trillion, supporting loans-to-funding at 85.0%. Management emphasized conservative risk appetite, GenAI transformation for productivity, digital client growth to 28 million, and Bradsaúde launch for healthcare consolidation, with capital above thresholds post-regulatory changes. Interest on shareholders' equity allocated R$4 billion, underscoring commitment to returns amid macro challenges.