Banco Bradesco S.A. - ADR (Ord)

Strong Earnings Growth: Banco Bradesco reported a recurring net income of BRL 5.9 billion for Q1 2025, growing 39% year-on-year and 8.6% quarter-on-quarter. This reflects a robust return on average equity (ROAE) of 14.4%, signaling improved profitability driven by diverse revenue streams and effective portfolio management.

Loan Portfolio Growth and Quality: The expanded loan portfolio increased by 4.9% year-on-year, with a significant 16.2% rise in individual loans and nearly 30% for micro, small, and medium-sized enterprises. The bank's credit risk management is robust, with a net interest income growing 30% year-on-year, and only 3% cost of risk, reflecting a stable portfolio quality.

Insurance Group Performance: The insurance division grew revenues by 25% year-on-year, contributing substantially to net income. The combined ratio is improving due to effective management practices, thus enhancing sustainability and profitability in the insurance sector, with an expectation for continued growth.