Bradesco 1Q Profit Fell on Increase in Provisions for Bad Loans

By Jeffrey T. Lewis

SÃO PAULO-- Banco Bradesco SA's profit declined in the first quarter from a year earlier after the Brazilian lender almost doubled its provisions for bad loans.

The Brazilian lender reported net income of 4.28 billion Brazilian reais, equivalent to $859 million, from 7.01 billion reais a year earlier. Recurring net income, which leaves out one-time items, declined to BRL4.28 billion from BRL6.82 billion, the bank said Thursday.

Net interest income fell to BRL16.65 billion from BRL17.06 billion a year earlier. Bradesco set aside BRL9.52 billion in the quarter as provisions for loan losses, after provisioning BRL4.84 billion in the same quarter a year earlier.

Bradesco and some other Brazilian lenders are setting aside more money as provisions for bad loans because more borrowers are having trouble repaying them. Bradesco's delinquency ratio of clients with loans more than 90 days past due increased to 5.1% from 3.2% in the year-earlier period.

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

(END) Dow Jones Newswires

May 04, 2023 18:28 ET (22:28 GMT)

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