Bradesco Q2 Net Profit Increases on Lower Loan Provisions

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Jeffrey T. Lewis

 

Sao Paulo – Banco Bradesco SA said its second-quarter net income rose from a year earlier after a Brazilian lender cut costs and reduced its bad loan reserves.

Bradesco reports that net income on the balance sheet in the three months to June rose 70.4% from a year earlier to BRL 6 billion, the equivalent of $ 1.2 billion. Periodic net income excluding one-off items rose 63.2% to R $ 6.3 billion, the bank said on Tuesday. Net interest income fell 5.7% to R $ 15.7 billion.

Bradesco and other Brazilian banks increased reserves last year to prepare for a possible increase in bad loans as a result of the economic slowdown and job growth fueled by the coronavirus pandemic. The bank allocated R $ 3.5 billion in the second quarter as a reserve for loan losses, up from R $ 8.9 billion in the same period a year earlier.

Bradesco and other Brazilian banks are working to cut costs through branch closures and downsizing. Bradesco said its operating expenses fell 4.1% in the second quarter from a year earlier to R $ 11 billion.

 

Email Jeffrey T. Lewis at jeffrey.lewis@wsj.com

 

(END) Dow Jones Newswires

Aug 03, 2021 5:43 PM ET (9:43 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

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