Banco Bradesco S.A. (NYSE:BBD) Q3 2023 Earnings Call Transcript November 10, 2023 8:30 AM ET
Company Participants
Carlos Firetti - Business Controller and Market Relations Director
Octavio de Lazari - CEO
Cassiano Scarpelli - EVP and CFO
Conference Call Participants
Renato Meloni - Autonomous
Mario Pierry - Bank of America
Tito Labarta - Goldman Sachs
Rafael Frade - Citibank
Daniel Vaz - Safra
Thiago Batista - UBS
Bernardo Guttmann - XP
Eduardo Rosman - BTG
Yuri Fernandes - JPMorgan
Anahy Rios - Santander
Pedro Leduc - Itau BBA
Carlos Firetti
Hello. Good day, everyone. Thank you for participating in our video conference call to discuss third quarter earnings results. It is a pleasure to have you on board. In the initial point of the event, Octavio will present the results of the bank. Then we are going to start the Q&A session. If you want to ask a question, you can send them via email or use WhatsApp in the address and phone number that you see on the screen. The presentation will be in Portuguese with simultaneously interpreting into English. And you can select the audio preference directly in the window that you're watching.
I'd like to remind you that the presentation and other materials are available for download in our Investor Relations website. I now turn the floor to Octavio who will start presenting the results. I'll see you again momentarily in the Q&A session. See you later.
Octavio de Lazari
Thank you, Firetti. Good morning, everyone, and thank you for joining us on our earnings video conference call. We will start our presentation with the highlights slide with the main numbers of the third quarter. Then we will talk about some strategic initiatives that aim not only to control costs, but mainly the increase in revenue. And finally, we will talk about the quarter's numbers. So Bradesco had a net income of BRL4.6 billion, up 2.3% compared to the previous quarter. With operating income growing 5%. ROE was 11.3% in the quarter, still below the level we would see as appropriate.
As you will see during the presentation, we have made progress on several key points, but we are fully aware of the challenges ahead. The portfolio of the book loan or the loan book grew 1% driven mainly by large corporates. Delinquency rates were down, which reflects an NPL creation, falling BRL1.6 billion and lower credit provision expenses by BRL1.1 billion. Our 90-day delinquency indicator improved by 10 bps with reduction in large corporate and individuals despite the portfolio shrinking, which has an important denominator effect on the ratio.