Bradesco lifts market NII as client spread compresses
Market net interest income rose 30.0% to R$875 million in the third quarter as total NII reached R$21.37 billion.
Total net interest income at Banco Bradesco S.A. (BBD) rose 2.4% sequentially to R$21.37 billion in the third quarter of 2026, with client NII up 1.5% to R$20.50 billion and market NII up 30.0% to R$875 million.
Client NII growth came from a larger average loan book rather than from spreads. Average client balances rose 2.8% sequentially to R$948.6 billion. Gross client NIM compressed 20 bps sequentially to 8.9% from 9.1% in the second quarter, as the average gross client margin fell 0.2 percentage points. The bank said the mix reflected a more moderate appetite in credit origination, prioritizing risk-adjusted return.
The expanded loan portfolio grew 1.1% sequentially to R$1,150 billion, with individuals up 1.1% and companies up 1.2%. Vehicle financing for individuals accelerated to 5.8% sequentially. Secured loans reached 61.2% of the portfolio, up 1.7 percentage points in 12 months, as the mix shifted toward real estate, auto, sureties and guarantees, and securities.
Credit quality moved the other way. The over-90-days NPL ratio rose 0.3 percentage points sequentially to 4.6%, which the bank attributed to MSME working-capital lines backed by federal guarantees and seasonal delays at John Deere Bank. Cost of risk increased to 3.7% annualized from 3.5% in the second quarter. Expenses with expanded loan-loss provisions rose 6.6% sequentially to R$10.64 billion. Coverage of Stage 3 movements was 83% in the quarter; excluding working-capital lines backed by FGI and FGO funds, coverage would have been above 100%.
Fee and commission income accelerated 4.2% sequentially to R$10.92 billion. Card income reached a record R$4.83 billion, up 7.5% sequentially, and accounted for 44% of total fees. Asset management rose 8.6% to R$1.07 billion, consortia rose 6.0%, and capital markets and financial advisory rose 4.8%.
The operating efficiency ratio improved 1.1 percentage points sequentially to 45.4%. Total revenue grew 8.4% year over year. Personnel and administrative expenses rose only 0.2% sequentially to R$13.1 billion. Recurring net income rose 0.8% sequentially to R$7.11 billion and 14.6% year over year; ROAE was 16.0%, or 16.1% excluding the capital increase.
Bradesco completed an R$10 billion capital increase and obtained Central Bank of Brazil approval, lifting capital ratios above regulatory and management levels. It allocated R$4.1 billion in interest on capital to shareholders in the quarter.
The bank said the macroeconomic environment continues to deteriorate, with high interest rates, a slowing economy, and tight financial conditions for companies and individuals. It said a slowdown in credit-related revenues is to be expected, with commercial teams focused on a cautious credit mix and expanding non-credit revenue streams. Management said it remains cautious and maintains a moderate risk appetite, with a commitment to implementing its transformation plan at an accelerated pace.
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