Banco Bradesco S.A. - ADR

Strong Financial Performance: Banco Bradesco reported a recurring net income of BRL 5.9 billion for Q1 2025, marking a 39% year-on-year growth and an 8.6% increase from the previous quarter. The total revenue reached BRL 32 billion, up 15% year-on-year, driven by solid growth across net interest income (NII), fee and commission income, and a strong insurance segment.

Loan Portfolio Growth and Quality: The expanded loan portfolio stood at BRL 1 billion, increasing by 4.9% year-on-year and 2.4% quarter-on-quarter. Individual loans grew 16.2%, and micro, small, and medium-sized enterprises saw nearly 30% year-on-year growth. Bradesco maintains a prudent risk appetite, focusing on secured loans and collateralized portfolios, which help mitigate risks amidst economic uncertainties.

Insurance Group Strength: The insurance segment recorded remarkable performance with a revenue increase of 25% year-on-year, contributing to nearly 40% of the bank's net income. The combined ratio is trending positively, indicating effective cost management and improved claim rates, suggesting a sustainable growth trajectory for this line of business.