In the third quarter, Banco Bradesco experienced a decline in profit due to a decrease in net interest income and an increase in provisions for bad loans.
Financial Results
The bank reported a book net income of 4.6 billion Brazilian reais ($932 million), compared to 5.2 billion reais in the previous year. Similarly, recurring net income also declined from 5.2 billion reais to 4.6 billion reais.
Net Interest Income and Provisions
Net interest income dropped from 16.3 billion reais to 15.9 billion reais. Additionally, Bradesco allocated 9.2 billion reais as provisions for loan losses, an increase from 7.3 billion reais set aside in the same quarter last year.
Increase in Provisions for Non-Performing Loans
As with other Brazilian lenders, Bradesco has been allocating more funds for provisions for non-performing loans. In the third quarter, the bank’s ratio of loans with payments overdue by more than 90 days rose to 6.1% from 3.9% in the previous year.
This decline in profit and increase in provisions reflect the ongoing challenges faced by Banco Bradesco and the broader banking industry in Brazil.
