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Bradesco 2Q Net Income Jumps on Smaller Loan Provisions

By Jeffrey T. Lewis

 

SÃO PAULO--Banco Bradesco SA said its net income rose in the second quarter from a year earlier after the Brazilian lender cut costs and reduced the size of its provisions for bad loans.

Bradesco said book net income rose 70.4% in the three months through June from a year earlier to 6 billion Brazilian reais, equivalent to $1.2 billion. Recurring net income, which leaves out one-time items, rose 63.2% to 6.3 billion reais, the bank said Tuesday. Net interest income declined 5.7% to 15.7 billion reais.

Bradesco and other Brazilian banks boosted provisions last year to prepare for a possible increase in bad loans coming from the economic slump and rise in employment caused by the coronavirus pandemic. The bank set aside 3.5 billion reais in the second quarter as allowance for loan losses, down from 8.9 billion reais in the same period a year earlier.

Bradesco and other Brazilian banks have been working to cut costs by closing branches and reducing staff. Bradesco said its operating costs fell 4.1% in the second quarter from a year earlier to 11 billion reais.

 

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

 

(END) Dow Jones Newswires

August 03, 2021 17:43 ET (21:43 GMT)

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