BANK BRADESCO(BBD)Q2 2026 法說會逐字稿

Good morning, everyone, and thank you so much for joining us again. We are here once again to speak about our earnings results, especially for the second quarter of 2026. We are talking to you straight from our studios at Cidade de Deus. Now it's 10:31, August 6. We are here broadcasting live from Cidade de Deus. I'm here to present our results. As you've seen from yesterday's publication, we reached BRL 7.1 billion net income in the second quarter and 16.2% growth year-on-year, 3.5% quarter-over-quarter with ROAE of 16.2%, higher than what the market expected because the market expected that we would reach 16% ROAE in the last quarter of this year. Here, I bring a summary of our presentation. I'm not going to elaborate on all of those topics now. Loan portfolio is growing with more guarantees with a very good risk-adjusted return. In the past two months, our IR department has been talking to investors, and they are asking us about what is happening to the macro landscape and the credit landscape. I will talk about our standing vis-a-vis revenue, and also we will talk about our accelerated transformation projects. I will talk about cause and effect. What is behind this result? Why are we growing our loan portfolio? We posted growth of 11.6% year-on-year, even more than quarter-over-quarter. The portfolio reached BRL 1.137 trillion and even in CAGR we posted 11.7% growth. Why is that? That is explained because we have high penetration, commercial traction. We have a very good and well-equipped commercial team with a lot of intelligence behind it, but also we have digital channels. We were the first bank to provide a very seamless FGO experience. This is happening throughout the organization. I will go through all of that through my comments. The cause is commercial traction in all business segments, in all business lines, no exception. This culminates in the growth of our loan portfolio. Further on, I'll talk about other revenue line items. SME posted 16.1% year-on-year despite the baseline of the same period of last year. This is a big highlight. Large corporates grew 12.7% year-on-year; I will elaborate on large companies further on. Individuals, 8.4% growth year-on-year. That means we are growing in different lines and in all aspects that we wanted to grow. We are also growing in customers with good ratings, with good credit modeling and adequate policies in every segment we operate. Remember one number because SME grew 5.1% quarter-over-quarter. This portfolio year-on-year grew BRL 37 billion. Keep that number in mind; we will talk about it later. I have some other figures for you here because they are in tune with what I said before. Where do we want to grow? Earmarked credit, mostly FGO, FGI, mortgage, including the empreendedor plan. We grew 21.4% when compared to 12.7% in the market. When I look at non-earmarked, we grew slightly lower than the financial system. Then we have other unsecured lines where we don't have a lot of risk appetite. We grew more in corporate because we have more secure lines when it comes to corporate. We have traction in payroll-deductible loans, and we are also very comfortable in direct credit to consumers. Corporate grew 14.7% versus 7.9% for the market. So we are growing in the lines that we want to grow, and we are focusing our teams and our digital channels on these particular lines. Now let's zoom in into our expanded loan portfolio. All of them have risk-adjusted return and are periodically assessed by myself included. Last week we looked at two other portfolios. We are constantly looking at that, finding and making adjustments. We are leaders in some areas, but the main focus is risk-adjusted return. I refer to the wholesale bank and its level of growth. Where did we grow in wholesale banking? We will talk about the agribusiness area, but we were leaders in fixed income origination and also in securities. Part of our securities go to OPD portfolio, which is origination for distribution. We distribute to the market and then go into the secondary market because you optimize capital and optimize profit. That's why wholesale portfolio has ups and downs; it can go up and then down. We grew in the rural area, agribusiness, with M&A opportunities in very specific lines. There were two operations we did: one in agribusiness in M&A with a AAA client, and another client with very good ratings but lower liquidity. In these two transactions alone, we posted BRL 6 billion in the wholesale bank, and we grew a lot in the Plano Empresário, the entrepreneur plan. So we grew in different segments in the wholesale bank and also SME, and this line is posting considerable growth. We will also focus on the individual segments. We are the largest funders of aviation leasing with 64% market share. Everything done in this first quarter in terms of aircraft financed to companies and wealth management is here; we are leaders in aircraft leasing, particularly among clients with well-positioned and collateralized risk management. Going back to wholesale and SME: individuals plus SMEs in the expanded loan portfolio — this is the level of growth we posted. Origination: the average monthly origination in these lines for wholesale and SME quarter-on-quarter was mostly in FGI and FGO and also mortgage and business side. In other products where risk appetite is lower, there was a decline in average origination by 7.7%. Now tactics and strategic moves: the mix of our loan portfolio, FGI and FGO origination — there is a lot of competition in this area from incumbent banks. We were #1 in market share with 21.6% market share, and the same for the full year of 2025. In the quarter, our origination was up 52.7% in the second quarter compared to the first quarter of 2026. Looking at retail and SME, the last available data by the Central Bank for clients that earn up to BRL 2 million a year: since the onset of the plan we saw new growth superseding 70% of market share. Our FGI/FGO portfolio grew 64.5% year-on-year. This is an extremely secure portfolio by both fronts. There are five lines of FGI and FGO, and we operate in all of them. Later I'll talk about the effects of NPL over 90 and cost of risk. Credit card: the bulk of the growth is in high income with lower appetite in smaller income. We are being very cautious here, but keep in mind we still have clients with lower income who pay on time, such as payroll clients and clients from our partnerships. These lower incomes have been losing share in the portfolio over the past 30 months, but they are still there. Looking at credit card delinquencies: this delay comes from all cohorts; about 80% comes from cohorts from 2019. Often, these clients had payroll with us and were in dire straits, lost jobs or faced difficulties. This doesn't apply to newer cohorts. This is a relationship product; we are choosing the right clients with right ratings and assertive credit policy. Every time we look at credit card, we look at cost of risk and provisions, eight times more than we used to do in the past. Vehicles: we recorded growth of 26.8% year-over-year. We were leaders in some quadrants of vehicles: heavy vehicles, light vehicles and semi-new or used vehicles, but we were not leaders in new heavy vehicles because risk-adjusted return is lower. Last year I said we would start operating in vehicle segments because we saw opportunities. We changed our operating circuit, changed the platform, added machine learning and AI behind pricing, risk modeling, credit policy and pricing for clients and dealers. Customer experience changed. We delivered different experiences for dealers and clients, increasing our share. Regarding semi-new or used vehicles, I am referring to vehicles around 5 to 6 years old depending on client ratings. We gained share where we have higher risk-adjusted return. For motorcycles, our appetite is more moderate; other banks operate in that line. When we grow this portfolio, on average cost of risk is around 1% according to regulation 4966, but delinquent clients generate additional provisions. Payroll loan was up 9.3%. In the full year of 2025, in some quarters we were growing at 5%. We expanded growth. Where did we grow most? In public payroll: year-over-year we grew 88% in public payroll. We continue to grow public payroll loan. We are the largest private bank for public payroll loan. In private payroll loan, we are just behind two government banks. Delinquency on payroll loans: market delinquency is 3.3% and ours is 2.5%. In the private segment, market without Bradesco has over-90 delinquency of 8.9% whereas ours is 4.7%. Agribusiness grew almost 25% year-over-year. In the wholesale bank, I mentioned one M&A event with a large client; wholesale bank increases with guarantees, secured AA and AAA clients. We believe in Brazilian agribusiness. It involves a cycle that can be difficult, but there are many good clients. We chose to continue operating in this market with good ratings. Looking at agribusiness individuals portfolio, comparing June to December 2025, there is a decline of 0.6%. Our over-90 NPL for this segment: the market without Bradesco in March went from 7.3% to 7.6% while Bradesco went from 5% to 4.6%, meaning our delinquency is well under control even without the John Deere Bank that has higher delinquency and affects our NPL 15 to 90. Our market share in Brazilian agribusiness is about 12% (estimate). Our share in court reorganization is 3.5%, and we monitor this closely; this percentage is much lower compared to the market. This shows how we manage our portfolio: risk-adjusted returns and portfolio control, being selective in clients and secured lines. Looking at secured lines production referring to expanded loan portfolio for individuals and SMEs: origination in FGI, FGO and mortgage for individuals and corporate gained traction in the last quarter. Payroll loan is included here. Spreads: absolute numbers go down because of fine-tuning of risk, new modeling, risk appetite; spreads in other lines were up 11% compared to Q3 2025. On the right side of the chart, guaranteed claim periods from government programs like FGI and FGO take 180 to 185 days to receive payment. We are within stop loss because rules apply. At FGO you have 100% coverage corrected for inflation. Our stop loss is foreseen for each program. Two phenomena affect cost of risk: while you wait for the guaranteed payment, for companies with maturities in grace period, if they can't pay after grace period they become delayed and we call provisions; this is different from clean credit. We get provisions until the guarantee claim period, and then return with the provision amount when the guarantee pays. Second, production peak of FGI and FGO last year between March and October means we now see maturity peaks in the grace period which puts pressure on over-90 until the curve stops growing. We are not worried. Loan quality indicators: over-90 was up 10 basis points — flat for us; individuals also 10 bps. For SMEs, government lines FGI and FGO caused pressure in previous quarter and this quarter. Wholesale is 0.2%. Loan portfolio by stages: NPL 15 to 90 had 30 bps variation mostly from John Deere Bank which had some variations in Q3. There is recovery time for equipment and updating payments. Stage 3 had 10 bps variation from a specific wholesale client; bulk of provision came last quarter and part this quarter. It was provisioned; the client restructured with bondholders. Stage 2 had 0.6 variation basically justified by FGI and FGO with about 0.2 and John Deere Bank pressure. Remaining is diluted in the portfolio; our delinquency levels are lower than market. Restructured portfolio has been decreasing; variation comes from that same client that went to Stage 3. If it weren't for that one, even with the Desenrola program we would have let that go. It's covered today, totally covered and within expected loss. Desenrola: we disclosed results through June. Impact on over-90: cost of risk in Brazil is almost zero as enforced into July and extended to August; we'll discuss again in Q3. Our secured portfolio is up to 61%, 69% secured loans for individuals. This is cause and effect and the work of diligent portfolio management focusing on secured lines. Other effects of loan portfolio growth: growth of total revenue to BRL 37.6 billion, up 10.3% year-on-year. Total net interest income almost BRL 20.9 billion and fee and commission income BRL 10.5 billion. I'll comment later. Insurance group has shown great resilience every quarter with 8.3% growth. For Q2 '24 to Q2 '26, our CAGR is 12.5%. Loan portfolio with more guarantees generates this revenue. I read comments from investors about client NII and market NII. Market NII was BRL 700 million this quarter, growth of almost 21.7%, thanks to competent work of our treasury team working in trading, ALM and energy desk, client desk, and so on. People wrote that market NII grew 22%. Client NII grew almost 14% year-on-year. Market NII year-on-year was BRL 350 million approximately, so it increased twofold. Client NII went from BRL 17.8 billion to BRL 20.2 billion, BRL 2.5 billion absolute growth. Client NII is not only from loan portfolio; liabilities grew and drove client NII growth. Cost of risk grew but was flat in proportion at 3.5% with FGO, FGI, John Deere Bank effects. Client NII net of provision at 4.5% reflecting cost of risk. Growth is not dramatic; in 30 months our loan portfolio grew 30%, and when you grow you call more provisions, so cost of risk goes up. Transformation and commercial traction: fee and commission income grew 1.7%. We believe we are within guidance. I highlight resilience. Consortiums and asset management both grew 10%; custodian brokerage services 26.4%. Agro brokerage and agro markets combined are working in synergy with one broker for individuals and institutional clients. The fee and commission release shows nine lines; when broken down there are at least 15 lines, showing diversification with a minimum of 15% contribution from non-credit lines. Capital markets decreased year-on-year because Q2 last year was very strong; adjustments in the Investment Bank explain that. In different lines we have BRL 1 billion more in revenue in 12 months versus 2023 with resilience. Other revenue lines: insurance, pension plans, savings bonds — robust quarter with net income growth 28.3% reaching BRL 2.9 billion. Total insurance income increased 8.3% year-on-year, 14% in the half. In the quarter the operating result was better than the financial one, same in the first half. The new platform for autos: we sell with a different experience and clients can choose to add auto insurance. Production in these two lines through Bradesco Financiamentos in our network in 2025 grew almost 100% in production of these types of insurance. Quarterly ROAE almost 22.8% and technical provisions almost 10%, BRL 467 billion provisions in the largest insurance group in Latin America. Operating expenses year-on-year growth 3.4%. We continue reviewing our footprint and investing in transformation. It's a gain in efficiency; some installation lines had negative variation and that affects efficiency ratio, but 3.4% is below inflation. Capital: I will be available to answer about the increase approved by the Board. We went from common equity from 0.9% to 12.2% and we expect Bradsaúde in the next period to add to 13.6% and 15.1% in Tier 1. We have many deliverables in our transformation. I call your attention to Bradesco Principal, which will have almost 800,000 and we have delivered that. Prime has almost 4.3 million clients and Bradesco fully digital 36 million mid-year; we're moving over 40 million. We're delivering many new things for clients, individuals and corporate with NF-e issuance, gaining productivity, using AI intensively and other technologies. Two screens to end and summarize: we have consistent net income growth step by step with resilience and belief in what we've been doing. The operating result in the full earnings release is growing over 14% with revenues growing double digits. We are a conglomerate and revenue diversification gives resilience not only in banking but payments and subsidiaries like consortium and insurance group. The transformation plan is clear and generating competitiveness across business lines in efficiency and revenues. Portfolio is growing safely with more guarantees and good risk-adjusted return — this is our bible. We ranked first in fixed income origination and M&A, vehicle financing, government lines FGO/FGI in consortiums and the insurance group largest in Latin America. That's not the end objective; the objective is the optimum point of risk-adjusted returns with scale and absolute revenue to take decisions safely. We have strengthened our balance sheet to unleash the value of Bradsaúde. We are focused so the tangible capital of the organization is greater. All of that with pragmatism. We were awarded many prizes. I conclude with Meu Bradesco, a platform we launched called My Bradesco focusing on hyperpersonalization. It's yours; clients come first. Meu Bradesco is hyperpersonalized and will grow. Our BIA celebrates 10 years with Renato and his team. BIA is now BIA Gen AI and serves all clients; she's available to 100% of clients with access. We had 74 million interactions; BIA is transactional and conversational. You can do Pix through BIA and other transactions. Throughout the semester there will be more technological experiences but never less humane. This is the connection behind our managers, connecting digital channels with our clients and connecting the strength in sales. We will see the launching of our market throughout day-to-day in social networks and other media with Meu Bradesco. Thank you for your patience. I know I took longer to explain. Now we're going to Q&A, and I'm here live with my friends Andre Carvalho, Head of IR, and Cassiano Scarpelli, CFO, to answer questions. Thank you so much. Thanks for participating.

Thank you, Marcelo and Cassiano. Good morning to you all. I would like to remind you that Noronha, the CEO of Bradesco Seguros, and Carlos Marinelli from Bradsaúde are also joining us remotely. If you want to send your questions, they can be submitted in Portuguese or English. Use the e-mail investidores@bradesco.com.br, WhatsApp 117443-8238, or point your camera to the QR code on the screen.

Andre, if you allow me. Sometimes we forget to say a few things. I would like to go back for one second to our presentation because I talked about the SME portfolio. Keep that BRL 37 billion number in mind. When I said our FGI and FGO grew 64.5%, how much did that grow from BRL 37 billion? BRL 31 billion came from this year-on-year. The rest, BRL 6 billion, came mostly from leasing and direct credit to consumers. We finance aircraft, jets and big boats on the wealth management side and the entrepreneur plan. SME growth came mostly from secured lines and secured credit. I apologize for the interruption; I didn't want to leave that information behind.

First question from Mario Pierry with Bank of America.

Congrats on your results. Noronha, I would like to focus on the capital slide. You show that your common equity Tier 1 is 11% and you still have 140 basis points to recognize from the Bradsaúde transaction. I want to understand why there is this delay in acknowledging that 140 and what else is missing for you to be able to recognize it. With that you will reach 12.7% Tier 1. You just announced BRL 10 billion of capital increase, which will take another 90 basis points. So you would get to 13.6%. Some investors are skeptical. Why do you need so much capital now? I think investors would like to hear from you why the bank needs such a high level of common equity at this point.

Mario, thank you for the question and the opportunity to talk to investors and analysts. First, strong capital is always healthy for a banking organization. When we talked to the Board, we looked at benchmarks. For example, JPMorgan has about 15% common equity. Having strong common equity is positive. We were questioned about that. We had a strict capital discipline. When we provide more collateralized credit, you can allocate capital better and improve risk-adjusted return. We already recognized part of the capital from Bradsaúde. The difference has to do with process timing and P&L delivery; it was something recent, so we are waiting for regulatory green light. Regarding the capital increase, it was a decision from controlling shareholders who are very capitalized and confident in the franchise, management and transformation plan. They decided to anchor at least BRL 8 billion out of BRL 10 billion. Having common equity above 13% provides resilience. Different organizations follow different policies, but right now this gives us resilience and shows controlling shareholders’ trust in management and the company. Cassiano has something to add.

We have been talking a lot to the market about tangible capital. Keep in mind the concept of tangible capital. These BRL 10 billion are related to tangible capital. It opens possibilities and makes the bank more robust. We can work better with our own working capital and withstand different macro scenarios. This brings additional comfort to the bank because controlling shareholders committed up to BRL 8 billion. We decided to anticipate IOC so that shareholders could strike a financial balance close to what is suggested in terms of capital raise. We are comfortable with this level of common equity to control tangible capital versus DTA and consumption of tax credits.

Your question is important. We monitor tangible capital constantly and discuss it with the Board. The reason we released the capital plan before results is that on the 29th we had a Board meeting and needed to disclose it to the market. On the 31st we also had payment of another IOC. Many shareholders have been with us for a long time — individuals, family holdings and institutions — and we wanted to give them time to consider participation. We were concerned about informing long-term shareholders ahead of these flows.

Thank you, Marcelo and Mario. We have a stronger P&L, better outlook on revenue and better tangible capital. Next question from Navarro with Santander Bank.

My question is a request. I want to hear from Noronha and Bradesco about your experience to help shed light on what could happen to the credit landscape this year and next year. There is a debate saying that this challenging credit scenario is structural and will remain challenging through 2026 and into 2027. Bradesco has a segmented profile, and household income is slightly lower. How do you see Bradesco in a structurally challenging scenario? Should analysts expect a higher cost of risk into 2027, lower portfolio growth, or reduced cross-selling and lower fee income? Help me understand what to expect going forward or whether we should start making adjustments in our numbers for 2027.

Navarro, thank you. A few factors: household income commitment and interest rate dynamics matter. Yesterday there was a drop in Selic from 14.5% to 14% and looking at IPCA numbers the landscape is challenging for Brazilian credit. If company EBITDA is lower, they are pressured by rates. Regarding SMEs at Bradesco, it's important to look at the mix. SME growth year-over-year was BRL 37 billion; BRL 31 billion came from FGO and FGI within stop loss, so the level of loss is minimal. The remainder came from leasing, direct credit to consumers, and the Empresário plan to middle market and corporate clients with good formality and ratings. Our appetite for lower income clients is much lower than in the past. For example, clean personal loan share of individuals was slightly above 15% in 2023 and is about 12% today. The mix is different. FGI/FG0 total portfolio is close to BRL 80 billion and is resilient. Regarding NPL over 90 and cost of risk: cost of risk increases when you grow FGO and FGI due to the guarantee claim period of 120 to 185 days; production peak March to October last year leads to maturity peaks in grace period now. Rural and agribusiness consolidation like John Deere Bank can also put pressure. If you grow the portfolio you also call more provisions. But we focus on top-line and risk-adjusted return. We show traction in payroll loans and SME, collateralized and secured. Corporate portfolio was up BRL 70 billion with secured lines and good ratings. Wholesale fluctuates because many securities are origination for distribution and then are sold in secondary market. We also finance aircraft; portfolio up BRL 1.5 billion in this period. The market has its own risk. Other banks have higher delinquency in private payroll loan; our over-90 is 4.5% versus market 8.9% without Bradesco due to moderation and Dataprev filters. We are very careful in managing our portfolio. While growth in FGO/FGI and agribusiness and John Deere consolidation will put some upward pressure on cost of risk, we are operating with no additional stresses in my view for 2026.

If you think forwards, look at our guidance. We work from the center of the guidance upwards.

My question is about return. ROAE achieved 16%. Could you discuss cost of capital in Brazil — it's around 15%–16% — and whether we can expect ROAE to continue to grow step by step? Where are the levers for additional growth? Follow-up on capital: after the capitalization, will Bradesco pay more dividends? What will be the distribution policy after capitalization?

Thiago, thank you. On the capitalization: we will pay the most we can of IOE based on the controller decision. Right now we have no other plan on the table. For the future we will look at dynamics going forward. Regarding ROAE and cost of capital: our cost of capital is below 15% today; after the Selic drop it is close to 14.5%. I do see ROAE continuing to grow. When we capitalize, increasing capital makes it more challenging to keep ROAE high, but we believe in step-by-step growth each quarter. This is our horizon grounded in a plan, transformation, productivity gains and an engaged team of over 70,000 employees.

Next question from Gustavo Schroden from Citibank.

Congratulations on the ROAE and cost of capital dynamics. I would like to talk about NII. Noronha mentioned it was strong with clients, but market NII has been surprising. How should we think about market NII from now on? There was a change in interest rate perspective. What is the bank's hedge policy regarding portfolios and what contributes to market NII? Help us think about NII going forward.

Gustavo, I will ask Cassiano to start and then I'll add comments.

Market NII was surprising and stems from strong work by treasury and desks. Commercial traction helps the client desk which is perennial and contributes to results. The energy desk is part of this concept. We don't have a single defined hedge policy; we work daily to capture the best result and respond to market dislocations. Consistent work and commercial traction in wholesale operations, energy and trading helped. We also achieved the soft guidance and believe we will be slightly ahead, potentially in the BRL 1.5–1.9 billion range of additional contribution. There are still opportunities, and we are comfortable with ALM and commercial traction.

I would add that we have good risk management and competent teams. Great business traction and client support across wholesale, middle market and other desks generated strong business for us. We can think that soft guidance has been surpassed and a horizon near BRL 2 billion is reasonable given the team and work we've done.

The result is here to stay and may even be higher from now on.

Congrats on results and capital management initiatives. I'd like to revisit NIM and cost of risk in relation to risk-adjusted return and exposure with guarantees. If you isolate NIM and cost of risk, liability margins are going down due to average Selic. Given your exposure and guarantees, I don't see NIM increment; I see stability. There is upward pressure from worsening of stages like John Deere and guarantee claims. Could cost of risk increase from the macro scenario even if you are not taking more risk? How should we think about this equation?

Daniel, thank you. A lower Selic is positive for us. Liability growth translated into cash management and more relationships. Funding cost reached an all-time low at one point and helped NII. Cost of risk: the market is worsening and I showed indicators like private payroll loan where other players operate with higher risk. There are structural pressures like FGI/FG0 and agribusiness. I view those as timely phenomena; the curve will come down and then flatten. I am confident in our NII and NIM because client NII increased and liabilities contributed. Fee and commission growth may have been relatively lower but we believe in higher growth across many lines; there are at least 15 lines to drive revenue and insurance and payments and subsidiaries contribute. Transformation improves cross-selling. The new auto platform is an example: integrated platforms, better UX for dealers and clients, pricing control and better penetration delivered almost 100% production increase in certain channels. So I have good expectations across fronts regardless of a restricted macro environment.

Marcelo said transformation gives resilience, cost of funding is down in Q2, and funding grew by 19% quarter-on-quarter versus 2025. We are getting more net money and seeing value proposition results: larger margin with lower funding cost. We said at the start of the year NIM would be flat around 9% in 2026. We delivered 9.1% in Q1 and Q2, so expect it to stay in that range.

Congrats to the Board for the bold decision. Quick follow-up on FGI and FGO: I know there is a guarantee claim and Stage 2 impact and timing until collection. Do we see provisioning into Stage 3? Is there carryover into Stage 2? Also on current accounts: a competitor is cutting tariffs aggressively, producing a 3% drop year-on-year for you and a 20% cut for them. Do you see pressure to accelerate account fee cuts or is it fine-tuning?

Yuri, good to see you. Yes, FGI and FGO may spill over to Stage 3; that's possible, but you often recover because payments come in monthly. The 120-day period can end and flows continue. There is a flow of different stages in and out. Wholesale bank dynamics with securities and derivatives can impact Stage 3, but we are within the guarantee period and comfortable. Portfolio management teams run stop-loss and stress scenarios and we are confident. On current account fees: the trend is not to grow fees. Bradesco Expresso has posted continuous growth and may offset fee pressure. There is seasonality in account fees. I don't think this line will support fee growth; fees will largely come from consortium, asset management, investment bank and brokerage services. Some fee lines may drop but can recover over time.

Yuri, current account is linked to new value propositions for services, not just traditional banking fees. Bradesco Expresso smooths out the drop, and our commercial strength focuses on digital retail, mostly via Expresso.

Next question from Pedro Leduc from Itaú BBA.

Question on corporate loan portfolio and securities/DCM. Companies grew 7% and TVM almost 9% in securities, so origination is strong. You ranked well. We didn't see corresponding revenue in financial advisory services. If the portfolio grows, why don't we see proportional fee revenue? LLP was lower in the corporate area; I thought LLP would be higher given origination. Help us understand these moving pieces and what to expect in H2.

Pedro, thank you. LLP was not much lower — about BRL 400 million — because we had an adjustment in a major case I mentioned. Wholesale can have specific cases that stress at a moment; we provision immediately when needed. Wholesale growth came from securities and sureties and guarantees in the Empresário plan. We financed M&A with good guarantees. We avoid industry specifics, but the operations had net guarantees in provision terms and we have good coverage levels. Regarding DCM fees, Q2 last year was very strong so year-on-year comparisons look negative. Securities will vary and fluctuate unless there is sustained market demand. Many of our products go to the secondary market. Our model includes origination for distribution (OPD) and results depend on the secondary market. We were leaders in origination but our goal is risk-adjusted return. In one client relationship we may accept lower RAR on a specific product if the broader client relationship compensates with payroll and other revenues. That is our approach.

Next question from Eduardo Rosman from BTG.

I want to revisit directed credit programs. Other banks and fintechs focus on earmarked credits. I want to understand sustainability not only of program size but returns over time. Should we expect pressure on returns due to more participants and funding costs or is this sustainable?

Eduardo, the bank participates in practically all five lines of FGI and FGO competitively. Resources are finite, but this is a long-term line with excellent guarantees and attractive risk-adjusted return when within stop-loss and well managed. It is sustainable in the long term and generates cross-selling and stronger client relationships. Production may vary short term, but permanence is long term with lines up to five years and grace periods. We were largest originator last year and in this semester. I don't see pressure on returns for 2026. The programs are among the best promoted by the federal government for targeted support to companies of certain sizes. They are sustainable and attractive for banks and clients.

Next question from Matheus Guimarães from XP.

Congratulations on results. I'd like to talk about private payroll-deductible loans. You reported relevant growth sequentially and year-on-year. The product changed and is controversial for some competitors. It's more difficult for some, others continue to operate. Share your view on the product considering these changes and what to expect for growth going forward.

Matheus, this product is maturing. Dataprev integration in July last year helped. We defined filters and accelerated origination from October while keeping discipline and RAR. The delinquency scenario is stable: 4.7% in June versus market 8.9% and rising. The product caters to lower-income clients and is risky; with the right filters we defined the public audience and can lend. Origination increased and is stable. Additional FGTS guarantees have restrictions and limited incremental value for origination.

We were careful to delay a stronger entrance until Dataprev and filters were robust. We approve credit for individuals and corporates. With delinquency lower without Bradesco, we have capacity to originate. In the private segment we have 7% share, so there is an opportunity to grow, not to lose share. We believe we will continue to grow.

With appropriate filters it is a good product. As you extend the tail of government programs, risk appetite must be cautious; we focus on the cluster we serve with disciplined underwriting. There is a path for growth but with caution.

Next question from Carlos Gomez-Lopez from HSBC.

Congrats on results and capital increase. Question on insurance: your guidance for insurance is still 6%–8% growth, but results in H1 were 14%. Should we expect normalization in H2? Also, regarding tangible equity: which tangible equity metric are you monitoring and what level do you want to target? In my numbers you have 5.9% tangible equity to assets; you used to have 6.5%–7%. What level would you like to achieve?

We will start with Ney to address insurance.

Good morning. Our expectation is to finish H2 pretty much in line with guidance. We are not saying there will be deceleration, but 2025 base was quite high in H2, which is usual for insurance. With a higher base last year, we expect to deliver close to the midpoint or slightly above the guidance for the year.

On tangible capital: we don't have a precise public target but the more our own capital the better to face growth and macro dynamics and to reduce tax credit consumption. The capital increase strengthens the bank for the next cycle and helps reduce DTA. We monitor this constantly.

The main point is profit and reducing the tax credit gap by increasing tangible capital. Thank you, Carlos.

Next question from Renato Meloni with Autonomous.

Congrats on another impressive ROAE. I want to revisit dynamics for H2. You expect guidance from mid to high end implying acceleration of risk-adjusted NII, while portfolio growth converges to guidance but is running above, NII net of provisions at 9.1% is flat and there are provisioning issues. Reconcile these aspects which could pressure your risk-adjusted margin.

Renato, thanks for joining. Andre can start on guidance.

Our commitment to step-by-step net income increase implies that by the end of 2026 our net income will be within the guidance from midpoint to top. Our guidance consists of five lines and we are confident we will deliver each within their intervals. Insurance near the midpoint upward, services close to the top, expenses near the floor, and NII net of provisions slightly below the center. Reconciliation is done at net income level, not strictly line by line.

We are delivering strong traction across revenue lines including liability NII, market NII and client NII. Fee and commission income, insurance and expenses are aligned with the plan. Everything is within the step-by-step plan without any reckless moves.

Next question from Tito Labarta with Goldman Sachs.

Follow-up on loan growth in two lines: corporate rural loans jumped 20% in the quarter. Your market share is lower and NPLs improved, but peers with larger exposure suffered. Why are you comfortable growing there? On the individuals side, vehicles: you are gaining share where peers are pulling back and have seen asset-quality issues. Why are you comfortable growing in those two lines?

Tito, thank you. On corporate wholesales agribusiness: we did specific M&A deals with AAA and AA clients totaling about BRL 6 billion which were well guaranteed and executed at a time that complemented our business. We focus on client quality. We continue to deconcentrate our top exposures. In agribusiness there are very good clients in targeted sectors we know well. On vehicles: we announced last year we would grow in vehicles as a risk-adjusted opportunity and divided the market into four quadrants: light new, light used, heavy and motorcycles. Motorcycles: low appetite. Heavy vehicles: we are leaders where RAR is acceptable. Light new vehicles have lower RAR so we are not leaders. Semi-new vehicles around five to six years old are where we targeted growth. We changed platform, integrated dealer and client experiences, implemented machine learning and AI for pricing, risk modeling and policies. We assessed ratings and guarantees and saw a market opportunity to grow profitably. Cross-selling with insurance also improved results. We focus on specific segments, not the whole market, and are confident in our approach.

Cross-selling with insurance is embedded in client experience and contributed to profitability and growth in vehicle lines.

Thank you to everyone for the questions. Those that were not answered will be addressed by the IR team by e-mail. The materials are available on the IR website and we are available to answer any questions.

Before closing, thank you to those who had the patience to listen to our explanations, to sell-side colleagues for the questions, investors, and employees following the release. We are confident in what we have been delivering across the bank, insurance group and subsidiaries. Marinelli released results recently and Bradsaúde shows high returns and strong SME distribution synergies. Vehicle insurance and other cross-sell initiatives were successful. I want to highlight that on February 20 market cap was BRL 240 billion and with Bradsaúde net equity at BRL 14 billion the remaining business value approximations show room to unleash value. We are confident in our future. Thank you everyone; see you next time. We are available to talk further.