Business
Bradesco hikes insurance, commissions outlook after Q2 profit lands just above estimates
Bradesco hikes insurance, commissions outlook after Q2 profit lands just above estimates
About this update from Banco Bradesco Sa
Brazilian lender Banco Bradesco BMFBOVESPA:BBDC3 on Wednesday posted a nearly 29% rise in its second-quarter recurring net profit, just above analysts' projections, while also boosting the annual outlook for funds brought in from fees and commissions and its insurance segment. Bradesco reported a 6.07-billion-real ($1.09 billion) recurring net profit for the quarter through the end of June. Analysts polled by LSEG expected a 5.95-billion-real profit.The lender upped its outlook for revenue growth from fees and commissions, which it now sees from 5% to 9%, above the previous projection of 4% to 8%.Bradesco also improved its estimated growth in income from insurance, pension plans and capitalization bonds to the 9-13% range, from the previous 6-10%. "Our profitability continues to grow gradually and steadily," Bradesco said in its earnings report. "To preserve the consistency of this process, we maintained the combination of commercial traction and caution in loan origination," it added.Its return on average equity (ROAE), a gauge of profitability, stood at 14.6% in the quarter, up from both 11.4% a year earlier and 14.4% in the first quarter of the year.Bradesco's total credit portfolio reached 1.02 trillion reais, increasing 11.7% on a yearly basis, while delinquency rates over 90 days came in at 4.1%, down 0.2 percentage points in the same period.($1 = 5.5711 reais)