Brazil's Bradesco sees credit book slowing down in 2026 after in-line Q4 profit

By Fernando Cardoso

SAO PAULO, Feb 5 (Reuters) - Brazilian lender Banco Bradesco BBDC3.SA said on Thursday it expects a slower growth in its credit portfolio this year, citing macroeconomic uncertainties and a more moderate appetite for risk.

Bradesco's loan portfolio is expected to grow between 8.5% and 10.5% in 2026, it said in a securities filing, down from the 11% increase seen last year, when the portfolio reached 1.09 trillion reais ($206.74 billion) by December-end.

The 2025 figure came above the lender's guidance of an increase between 4% and 8%.

"We maintain a moderate appetite for risk, because the macro scenario still presents challenges and uncertainties, but we have found good opportunities and are optimistic about our business," Chief Executive Marcelo Noronha said in a statement following the release.

Bradesco reported a recurring net income of 6.52 billion reais in the fourth quarter, up 20.6% year-on-year and roughly in line with the average estimate of 6.46 billion reais in a LSEG poll.

Loan-loss provisions rose 18.3% to 8.83 billion reais. Return on average equity, a gauge of profitability, was up 2.5 percentage points to 15.2%.

"Our expectation is that profits will continue to increase gradually and steadily, step by step, in each of the coming quarters," Noronha said.

Among its projections for 2026, Bradesco estimated its net interest income net of provisions, a metric of earnings on loans minus deposit costs, to reach between 42 billion reais and 48 billion reais this year, up from 40 billion reais in 2025.

The insurance sector is forecast to improve between 6% and 8%, while fee and commission income would grow 3% to 5%, both below the increases of 16.1% and 8.9% seen last year, respectively.

Operating expenses would rise 6% to 8% in 2026, Bradesco said, following an 8.5% rise in the previous year.

($1 = 5.2723 reais)