The following is a summary of the Banco Bradesco S.A. (BBD) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Banco Bradesco reported a recurring net income of BRL4.2 billion, a flat quarter-to-quarter but a 46% improvement over Q1 2023.

• Improved Allowance for Loan and Lease Losses (ALLL) led to a reduced Non-Performing Loan (NPL) ratio.

• Recorded growth across all loan segments.

• Loan portfolio growth took precedence over margin expansion despite challenges in net interest income.

• 4.4% growth was reported in operating expenses.

• An increase in provisioning, amounting to BRL380 million, was reported mainly for products like pension funds.

• Net interest income dropped by 14% YoY.

• Decrease of approximately 13% reported in checking accounts year-on-year.

Business Progress:

• Notable performance improvement was reported in the insurance sector with increased premium income, pension plan contributions, and technical provisions.

• Revising strategic plan entailed organizational restructuring, which Reduced leadership layers and Increased the span of control.

• Filled two new executive positions with external hires, including a credit director and the head of the digital unit.

• Increase in branch count by 122 specifically for companies resulting in 143,000 new clients.

• Predicted expansion of the client base to 250,000 by year-end.

• Expectation to amplify revenues and increase return rates by focusing on customer segmentation.

• Prioritizing swift credit services by unifying processes into a new credit business unit.

• Making efforts to manage the balance between demand deposits and mix by working with companies and SMEs.

• Reframing its strategy with NEXT to utilize its insights for overall business efficiency and growth.

• Implementing management and culture revamps in the strategic plan for leanness and efficiency.

• Further growth impacts from the strategic plan launched in Feb '19 expected in future quarters.

More details: Bank Bradesco SA(prefer share ADS) IR

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