Bradesco (BBDC3;BBDC4) recorded recurring net income of R$6.821 billion in the first quarter of 2022 (1Q22), representing an increase of 4.7% compared to the same period in 2021, when it recorded a profit of R$6.515 billion. The bank released its figures on Thursday (5).
According to a Refinitiv consensus with analysts, the bank was expected to post a profit of BRL 6.762 billion, or an increase of 3.8% on an annual basis.
Management attributed the result to a good performance in the financial margin, service fees and operating expenses.
The financial margin with customers increased 7% in relation to the immediately previous quarter and 19.6% in the annual comparison. THE spread increased to 9.7% from 9.1%.
Accounting net income stood at 7.009 billion, up 13.9% over the same period last year.
When the comparison is between the first quarter of this year and the fourth quarter of last year, recurring income advanced 3.1% and accounting increased 121.1%.
Return on Average Equity (ROAE) was 18%, 0.5 percentage points higher than in the previous quarter, but 0.7 percentage points lower than in the first three months of last year.
Revenue from services rendered totaled R$8.611 billion in 1Q22, an increase of 6.7% year-on-year and a decrease of 2.9% compared to 4Q21.
The expanded Allowance for Doubtful Accounts (PDD) was R$4.836 billion in the quarter, increasing 23.8% compared to the same quarter of 2020 and 12.9% compared to 4Q21.
The customer base increased by 5.8%, compared to the same period last year, to 74.8 million, with 21 million in digital operations (Next, Bitz and Digio). According to Bradesco, digital channels released the equivalent of 32% of the bank’s credits, reaching R$23.6 billion. Volume grew 44% compared to the first quarter of 2021.
Bradesco’s expanded credit portfolio ended March at R$834.4 billion, representing an increase of 18.3% compared to a year earlier and 2.7% compared to the end of December 2021. There was growth both the participation of legal entities (R$ 502.04 billion) and individuals (R$ 331.40 billion).
Along with the release of the first quarter results, Bradesco revised some of its forecasts. At the guidance As of 2022, the bank has increased its PDD expectations, from R$17 billion to R$21 billion. It also revised upwards its margin perspectives with clients, forecasting an increase between 18% and 22%. For revenue from services rendered, Bradesco is now betting on a rise between 4% and 8% in 2022. As for operating expenses, the objective is a reduction between 1% and 5%.
The bank also placed its bets on economic indicators. For Bradesco, the Brazilian Gross Domestic Product (GDP) should be positive by 1.5% in 2022 and grow by 0.5% in 2023. The forecast for the IPCA is 7.5% this year and 3.9% next year. The bank believes that the Selic will go up to 13.25% and rate reductions should only occur in 2023, with interest rates reaching 9%. For the dollar, Bradesco forecasts a rate of R$ 5.10 for both this year and next year.
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