Banco Bradesco S.A. (NYSE:BBD) Q3 2024 Earnings Conference Call October 31, 2024 9:30 AM ET

Company Participants

Marcelo Noronha - CEO
Andre Carvalho - IR
Cassiano Scarpelli - Director Vice President
Andre Rodrigues Cano - Executive Vice President
Ivan Gontijo - CEO, Bradesco Seguros SA

Conference Call Participants

Eduardo Rossman - BTG
Renato Meloni - Autonomous
Yuri Fernandes - JP Morgan
Thiago Batista - UBS
Daniel Vaz - Safra
Mario Piery - Bank of America
Pedro Leduc - Itaú Unibanco
Eduardo Nishio - Genial
Tito Labarta - Goldman Sachs
Carlos Gomez-Lopez - HSBC
Bernardo Guttmann - XP
Henrique Navarro - Santander
Brian Flores - Citi

Marcelo Noronha

Good day, everyone. I am Marcelo Noronha, CEO of Bradesco. I am here to present the earnings of the Third Quarter 2024. I'm speaking at Cidade de Deus. It's a little over 10:30, 10:31. It's a pleasure to be with you again. Thank you for joining us. And we'll speak about the balance sheet of the third quarter, and then I'll sit with my colleagues to answer some of the questions from our colleagues of the sales side.

I'll start with the earnings of Q3 '24, which we received. We had a recurring net income of 5.2 billion barrels, growing almost 11% compared to the second quarter '24. In the past quarter, as a reminder, we grew more than 12% quarter-on-quarter. So we have been delivering what we committed to do.

We don't promise things. We deliver things. And we are growing step by step consistently. And here we have a snapshot of everything we are going to present to you today during this video conference call. Our profitability is growing. It's a solid and safe profitability growth. Our NII evolves driven by client NII and reduction of loan loss provision expense.

We'll speak more about that. Productivity gains with rising revenues, risk of credit risk controlled in the footprint adjustment, balanced credit portfolio growth, and improving delinquency ratios, operating expenses evolving as expected, and the insurance group delivering an ROE that was very relevant, almost 24%, growing practically all the lines.

And we'll speak about increased stake in Cielo as a result of the tender offer we had and with the closing in the month of September. So moving forward, let's speak about total revenue in the quarter, R$30.6 billion. And I'm always comparing quarter-on-quarter more than year-on-year.

So 3.7% quarter-on-quarter, and we wanted to break it down for you, fee and commission income. So we have three blocks here. Total net interest income growing 2.7% quarter-on-quarter, fee and commission income growing 2.8%, and the insurance group 8.7% growth. And we have this performance of growth comparing quarter-on-quarter, so increasing 3.7% in terms of total revenue.