Bradesco 3Q Net Income Falls on Increase in Provisions for Bad Loans

By Jeffrey T. Lewis

SÃO PAULO–Banco Bradesco SA’s net income fell in the third quarter from a year earlier as it boosted provisions for bad loans.

Bradesco had net income of 4.2 billion Brazilian reais, equivalent to $731 million, in the three months through September, from 5.8 billion reais in the third quarter of 2019, the bank said Wednesday. Recurring net income fell to 5.03 billion reais from 6.5 billion reais a year earlier. Net interest income increased 3.5% from a year earlier to 15.3 billion reais.

Brazil’s economy is recovering from the hit it took in the first and second quarters because of the coronavirus pandemic, helping boost lenders’ income from the previous quarter as demand for credit improves and fee and commission income increases.

Bradesco’s credit portfolio grew 11.7% from the third quarter of 2019 and increased 0.5% from the second quarter of this year to 664 billion reais. Fee and commission income fell 3.6% from a year earlier to 8.1 billion reais, an increase of 6.5% from the second quarter of 2020.

The bank boosted provisions for bad loans to 5.6 billion reais, an increase of 67.5% from a year earlier, though a decline of 37.1% from the second quarter.

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

(END) Dow Jones Newswires

October 28, 2020 18:44 ET (22:44 GMT)

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