Bradesco 2Q Profit Declined on Increased Loan Provisions

By Jeffrey T. Lewis

SÃO PAULO-- Banco Bradesco's profit dropped in the second quarter after the Brazilian lender increased the amount of money it set aside for bad loans.

The bank reported net income of 4.5 billion Brazilian reais, equivalent to $915 million, from BRL7.1 billion a year earlier. Recurring net income, which leaves out one-time items, declined to BRL4.5 billion from BRL7.0 billion, the bank said.

Net interest income rose to BRL16.6 billion from BRL16.4 billion a year earlier. Bradesco set aside BRL10.3 billion in the quarter as provisions for loan losses, after provisioning BRL5.3 billion in the same quarter a year earlier.

Bradesco and some other Brazilian lenders are setting aside more money as provisions for bad loans as more borrowers are having trouble repaying them. Bradesco's delinquency ratio of clients with loans more than 90 days past due increased to 5.9% from 3.5% in the year-earlier period.

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

(END) Dow Jones Newswires

August 03, 2023 18:23 ET (22:23 GMT)

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