Earnings release
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Bradesco | Economic and Financial Analysis Report Highlights 3Q26 Press Release • Recurring net income increases by 14.6% y/y • Tight control over expenses and total revenues growing by 8.4% led to a continued improvement in the cost to income ratio • The loan portfolio continues to grow with moderate risk appetite, concentrated on secured loans and lines high risk adjusted return • Non-performing loans showed a slight increase, particularly in lines secured by the Federal Government and John Deere Bank’s • Insurance maintaining ROAE at 22% and claims ratio under control • Transformation continues at an accelerated pace • R$10 billion capital increase completed Consolidated Recurring Net Income R$7.1 bn △ 0.8% q/q △ 14.6% y/y Total Revenue R$38.0 bn △ 1.1% q/q △ 8.4% y/yBradesco strengthened its balance sheet, made positive progress in its operating performance and increased its net income in 3Q26. In a more challenging economic environment, we made additional fine-tuning adjustments to our credit models, pricing and reduced our exposure to more volatile client clusters. At the same time, our diversified revenue base, including treasury, investment banking, brokerage and custody services, consortia, and insurance operations, combined with rigorous expenses management while maintaining investments in our transformation journey, supported our performance. As a result, we have improved further our cost to income ratio. Looking ahead, we remain cautious and maintain a moderate risk appetite, with a firm commitment to continuing implementing our transformation plan at an accelerated pace. The macroeconomic environment continues to deteriorate, as noted in recent reports released by the Central Bank of Brazil. Interest rates remain high, and the economy is slowing down. The debt service-to-income ratio of individuals is high, and financial conditions are tight for both companies and individuals. Against this challenging macroeconomic backdrop, a slowdown in credit-related revenues is to be expected, with our commercial teams more focused on a cautious credit mix and on expanding non-credit revenue streams. This was the case in 3Q26. Two positive standouts in quarterly growth were fee income and market NII, with strong performance from the structured products trading desks serving clients and ALM management. Regarding the loan portfolio mix, the share of real estate, auto financing, sureties and guarantees, and securities expanded. As a result, there was a further increase in the share of secured loans in our portfolio. Delinquency indicators hinted at a slight increase in 3Q26. Consistent with the trend seen in recent quarters, delinquencies of more than 90 days increased in the MSME segment, particularly in working capital loans backed by Federal Government guarantees. Delinquencies in this product account for almost half of the increase in total delinquencies. In addition, there were seasonal delays in John Deere Bank's operations, which placed pressure on the over90 NPL for individuals. Overall, the macro environment continues to put pressure on delinquency ratios, which encourages us to make further fine-tuning adjustments to models, prices and reduce our exposure to more volatile client clusters. The cost of risk increased slightly in the quarter, as a result of the reassessment of the risk of older vintages. Coverage of Stage 3 movements stood slightly below 100%. Excluding working capital lines backed by the FGI and FGO funds, coverage would have been above 100% in 3Q26 and in every quarter of the year. The net interest income rose during the quarter. Of particular note was market NII – once again reflecting strong risk management and treasury's capacity to drive recurring value – primarily from the client market- risk desk. The client NII also grew, reflecting the expansion of the loan portfolio. Fee and commission income accelerated in 3Q26, with a particular emphasis on card fees, asset management, consortia and capital markets & financial advisory services. Income from insurance sustained ROAE at a healthy 22%. Operating expenses remained controlled, and the claims ratio evolved in line with seasonal patterns for the period. Premiums grew on a quarterly and annual basis. Despite the significant investments we are making in our transformation plan, we have been able to keep tight control over spending. Key cost lines, such as personnel and administrative expenses, increased at a rate below inflation for the period. Our efficiency ratio (cost-to-income ratio) continues to trend downward. We stand firm in our commitment to further enhancing the Organization’s efficiency. We allocated R$4.1 billion in interest on capital to shareholders in 3Q26. We successfully completed our R$10 billion capital increase and have already obtained regulatory approval from the Central Bank of Brazil for the transaction. As a result, our capital ratios have risen and are well above regulatory and management levels. Our transformation plan is moving forward at an accelerated pace. We have made significant progress in the new client segments and all client channels. Regarding MSMEs, we continue to raise deposits and change the way we serve the segment, including greater use of the new App. Our high-net-worth segment, Principal, expanded to 93 offices and crossed the 500 thousand client mark as of September. We have more than 45 million fully digital clients, gained further efficiency in digital sales, and continued to adjust our footprint. On the technology front, we continued to scale our agile operating model by expanding the number of tribes, launched new digital journeys, and increased efficiency through broader adoption of AI. We have increased the amount of tech talents and the number of agentic squads, expanding our capacity for transformation. We remain committed to financing sustainable businesses and supporting our clients in the transition to a greener and more inclusive economy. As of September 2026, we had reached 95.6% of our target of directing R$450 billion to this purpose by the end of 2026. We completed the allocation of R$3.6 billion to sustainable projects under the first Eco Invest Brasil auction. This amount comprises R$500 million in catalytic capital and R$3.1 billion in private resources mobilized for initiatives in energy transition, circular economy, bioeconomy, sanitation and infrastructure. The following information provides detailed insights on our performance in 3Q26, including the results, balance sheet and key performance indicators. Total Net Interest Income △ 2.4% q/q △ 14.2% y/y Fee and Commission Income △ 4.2% q/q △ 3.1% y/y Insurance, Pension Plans and Capitalization Bonds 8.6% q/q 2.0% y/y Personnel + Administrative Expenses R$13.1 bn △ 0.2% q/q △ 1.8% y/y Operating Efficiency Ratio 45.4% 1.1 p.p. q/q 4.7 p.p. y/y Expanded Loan Portfolio R$1,150 bn △ 1.1% q/q △ 11.1% y/y Individuals △ 1.1% q/q △ 7.4% y/y Companies △ 1.2% q/q △ 14.1% y/y Over 90 days ratio 4.6% △ 0.3 p.p. q/q △ 0.5 p.p. y/y Insurance Group Recurring Net Income R$2.9 bn 1.9% q/q △ 14.1% y/y ROAE 22.0% ROAE 16.1%* (*) Excludes the capital increase.
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Recurring Net Income Statement (1) It covers the following effects: (i) payment of the IR/CS (Income Tax/Social Contribution) debt of the years 2014 and 2015 with the benefits brought by Law No. 14,689/2023, (ii) effects of joining the Comprehensive Transaction Program (PTI) and (iii) other tax provisions. Recurring Net Income Movement in the Quarter | R$ Million (1) Tax Expenses, Results derived from investments in controlled companies, Non-Operating Income, Income Tax/Social Contribution and Minority Shares. ROAE Quarterly and Year-to-Date Operating Efficiency Ratio / Risk – Adjusted ER R$ Million 3Q26 2Q26 3Q25 9M26 9M25 3Q26 vs. 2Q26 3Q26 vs. 3Q25 9M26 vs. 9M25 \\ Net Interest Income 21,372 20,872 18,710 62,296 53,987 2.4 14.2 15.4 Client NII 20,497 20,199 18,611 60,194 53,138 1.5 10.1 13.3 Market NII 875 673 99 2,102 849 30.0 - - \\ Expenses with Expanded Loan Loss Provisions (10,642) (9,985) (8,560) (30,294) (24,344) 6.6 24.3 24.4 \\ NII Net of Provisions 10,730 10,887 10,150 32,002 29,643 (1.4) 5.7 8.0 \\ Client NII Net of Provisions 9,855 10,214 10,051 29,900 28,794 (3.5) (2.0) 3.8 Income from Insurance, Pension Plans and Capitalization Bonds 5,590 6,119 5,706 18,092 16,659 (8.6) (2.0) 8.6 Fee and Commission Income 10,924 10,486 10,592 31,782 30,668 4.2 3.1 3.6 Operating Expenses (16,316) (16,436) (16,488) (48,930) (47,392) (0.7) (1.0) 3.2 Personnel Expenses (7,284) (7,219) (7,126) (21,522) (20,683) 0.9 2.2 4.1 Other Administrative Expenses (5,855) (5,896) (5,778) (17,343) (16,682) (0.7) 1.3 4.0 Other Income / (Operating Expenses) (3,177) (3,321) (3,584) (10,064) (10,027) (4.3) (11.4) 0.4 Tax Expenses (2,134) (2,293) (2,164) (6,795) (6,618) (6.9) (1.4) 2.7 Results derived from investments in controlled companies 153 166 83 392 265 (7.8) 84.3 47.9 \\ Operating Income 8,947 8,929 7,879 26,545 23,225 0.2 13.6 14.3 Non-Operating Income 22 13 (16) 39 58 69.2 - (32.8) Income Tax / Social Contribution (1,734) (1,734) (1,574) (5,229) (4,834) - 10.2 8.2 Non-controlling interests in subsidiaries (126) (158) (84) (385) (313) (20.3) 50.0 23.0 \\ Recurring Net Income 7,109 7,050 6,205 20,970 18,136 0.8 14.6 15.6 Non-Recurring Events - - - (1,781) (62) - - - PTI Adherence / Tax Provisions (1) - - - (1,781) 433 - - - Labor Contingency - - - - (495) - - - Book Net Income 7,109 7,050 6,205 19,189 18,074 0.8 14.6 6.2 Variation % 7,050 7,109 298 202 (728) 71 (529) 438 120 187 Net Income 2Q26 Client NII Market NII Mass-Market Wholesale Income from Insurance Fee and Commission Income Operating Expenses (Personnel + Administrative + Others) Others Net Income 3Q26 Net Interest Income ▲ 500 ▲ (657) Expanded LLP 15.6 16.2 15.8 15.2 14.7 15.816.015.8 14.814.6 16.1 16.0 3Q2Q1Q264Q3Q25 Quarterly Year-to-Date Quarterly Excluding the Capital Increase Year-to-Date Excluding the Capital Increase % (1) 45.446.546.950.150.1 47.248.449.250.050.7 3Q2Q1Q264Q3Q25 75.275.575.775.776.0 % Quarterly 12-month 12-month risk-adjusted