Q4 2025 Banco Bradesco SA Earnings Call

February 6, 2026

Speaker #1: The full year of 2025, today's February 6th, and my watch shows 10:31 a.m. I start this presentation saying that all of this material has been released last night after market closing, and I think you had access to it.

Marcelo de Araujo Noronha: The full year of 2025, today is 6 February, and my watch shows 10:31AM. I start this presentation saying that all of this material has been released last night after market closing, and I think you had access to it. I start with our recurring net income, BRL 6.5 billion, growing 20.6% year-over-year, and BRL 24.7 billion for the full year, 26.1% growth. However, you know, within ROAE of 15.2% exceeding our cost of capital for the first time in this quarter, and that's why we say that we will continue to grow our ROAE for the coming quarters and years to come. Here I have all of the operating highlights.

Marcelo de Araújo Noronha: The full year of 2025, today is 6 February, and my watch shows 10:31AM. I start this presentation saying that all of this material has been released last night after market closing, and I think you had access to it. I start with our recurring net income, BRL 6.5 billion, growing 20.6% year-over-year, and BRL 24.7 billion for the full year, 26.1% growth.

Speaker #1: And I start with our recurring net income, 6.5 billion BRL, growing 24.6% year on year, and 24.7 billion for the full year, 26.1% growth.

Marcelo de Araújo Noronha: However, you know, within ROAE of 15.2% exceeding our cost of capital for the first time in this quarter, and that's why we say that we will continue to grow our ROAE for the coming quarters and years to come. Here I have all of the operating highlights.

Speaker #1: And however, within ROAE of 15.2%, exceeding our cost of capital for the first time in this quarter. And that's why we say that we will continue to grow our ROAE for the coming quarters and years to come.

Speaker #1: Here, I have all of the operating highlights. I'm not going to go over each one of them because I will show—I will certainly change a little bit today's presentation, and I would like to bring you some elements related to our transformation plan that, in fact, was published February 7th of 2024, so less than two years ago.

Marcelo de Araujo Noronha: I'm not going to go over each one of them because I will certainly change a little bit today's presentation, and I would like to bring you some elements related to our transformation plan that, in fact, was published 7 February 2024, so less than two years ago. It will be two years as of tomorrow, so that's when we released the plan. I would just like to remind you of what we did back then. So we started with a diagnosis about Bradesco, about the Brazilian market, and also we drew up a worldwide benchmark with all of the relevant aspects like technology. Out of that diagnosis, we drew up a plan, knowing all of our strengths. The plan has; the bank has several strengths, and the organization as a whole, for that matter. Back then we said that we had 70 million clients.

Q4 2025 Banco Bradesco SA Earnings Call

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Q4 2025 Banco Bradesco SA Earnings Call

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Friday, February 6th, 2026 at 1:30 PM

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Marcelo de Araujo Noronha: When we presented the plan, we came up with this mandala with all the main topics, the 10 main items that were carefully, you know, looked at with more than 200 new initiatives. I will go over some of them. I will not talk about all of them or all of that. Otherwise, we will be here for 2 hours, and you will be really tired. But our IR team and the transformation office, everybody is available to give you further clarification, especially those that want to, you know, to talk to investors to discuss, you know, some particular area of this mandala. And if you have additional questions, we are certainly at your disposal. So I'll briefly cover some of the most important highlights, and then I will go back to the core numbers and we wrap up the presentation. So then, after the presentation, we have the Q&A.

Marcelo de Araujo Noronha: And what we envision for 2026 vis-à-vis our digital retail, first we go from 19 million to approximately 40 million clients between account holders and non-account holders. And certainly our objective, not only for 2026, but, you know, going forward, is to reduce the cost to serve and to continue growing our customer base. The second topic is affluent clients, and we are talking about principal and prime segments. We promoted an upgrade to more than 3.1 million clients with a new value proposition. And at the same time, we introduced a new position in this segment of clients, prime, end of the year, of 2.3 million clients. Well, we trained 3,500 managers. We focused on that training. But notice the level of accuracy for BIA clients. Accuracy was 93% at BIA customers. And then I go to principal.

Marcelo de Araujo Noronha: You may recall that we launched Principal in November 2024 with three offices, one in Faria Lima, another one in Campinas, and the other one in Leblon, in Rio. Then we started the expansion process. In fact, I invited sell-side and buy-side clients to look at our management model rather than just the business model. So we are just going through this phase in other segments. We launched the new segment in November 2024. By the end of last year, we had 62 offices in 36 municipalities, approximately 320,000 clients in this segment with this current level of NPS, a new value proposition. This created this new differential. What do we expect to see next year out of these two affluent segments? I mean, a new upgrade with more than 1.5 million clients reaching 4,700,000 clients.

Marcelo de Araujo Noronha: So to that end, we hired 250 professionals, and we gave them full technology support to enhance the model for all customer segments, also to manage the portfolios and looking at the timeline of credits and loans that are not only decided on prediction models but mostly decided by human judgment, and they support all of that. The consequence is that this SME growth level is still the same that we have with payroll loans. If we hadn't put this together in the way it is, certainly we wouldn't be growing SMEs the way we've been growing today and the way we grew in 2025. What do we expect in terms of our objectives? I mean, this unit together with the client segment, we want more competitiveness in some lines and segments, but growth with quality and, moreover, a very strict, you know, risk-adjusted return.

Marcelo de Araujo Noronha: People are crucial, competent teams, and teams that can certainly deliver and change as we go so that we can deliver more competitiveness in the short and long run. So organizational structure was the first thing I showed during the plan. So we reduced layers. We reduced the span of control. I mean, we increased the span of control, and we brought C-levels and directors to different areas. I talked about the credit area more recently, but we also promoted inorganic growth. I'm not going to get into the details, but in the insurance company as well with the hospitals. And what do we expect out of this organizational structure? To gain more efficiency and agility when it comes to decision-making. Technology. This is a chapter that I've been talking about all the time, investments in AI. For us, our culture is AI first. AI first.

Marcelo de Araujo Noronha: AI is not just GenAI. It's machine learning for our mathematical models, but also multi-agent. We have been working with a number of initiatives on this slide. I spoke about BIA Clients with that level of retention using GenAI, but we have BIA Corp, BIA Tech, BIA Clients, and so on and so forth. So what happened in this two-year period? We gained productivity. We reduced lead time. The consequence was this that I mentioned before, with a base 100 of delivery for clients, internally for review processes, and gaining productivity off a regulatory point. We increased 2025 with 300. We grew our capacity by three times, less than two years. That's when we started this whole move. We invested and reinvested in cybersecurity. We improved our second and third lines of defense for cyber.

Marcelo de Araujo Noronha: We expect greater productivity gain, more and more intensive GenAI use, but more competitiveness, innovation in time to market. I'd like to mention some other things here because I'm going to get to the numbers in a minute, and we'll speak about guidance eventually. But we invested last year. We invested heavily in technology. Investments in technology grew in 2025 compared to 2024 by 22%. If you look at our guidance, which I will refer to in a minute, of those, about 8% of growth, approximately, about 3% or slightly over 3% come from the investments that we will continue to make. We will not give up on investing. I see technology as a big driver of our productivity and our ability to deliver a lot more time for you with hyper-personalization, which we have been doing. During the Q&A, we can speak more about that.

Marcelo de Araujo Noronha: If we look at the net income, I always tell my team, this should be in the last slide and not in the first because, again, we speak here about cost and effect, and this is the effect, the effect of what? The effect of a plan that is being executed, and that is showing our capacity, revealing and proving the strengths that we talked about, but strengths that were driven by actions of the plan. And we have a growing number, each quarter delivering always a little bit more and step by step. Step by step, we don't change the strategic plan overnight. You correct the course. You correct the tactic, but there is a strategic continuity and with execution discipline. And this is a colossal discipline. We are showing this with our whole team in the transformation office. We're growing in all revenues.

Marcelo de Araujo Noronha: NII, we see here on the growth, NII and fee and commission income. When we remove the CLO tender offer, the growth is 5.5%. Insurance and pension plans are 16.1%, another robust quarterly growth expectation. But why is total revenue growing? Again, cost and effect. It's not by divine providence. It's by an increased penetration, credit traction in NII, a reduction of liabilities, cost better, liability management, and so on and so forth with all of the initiatives adopted. Looking at our loan portfolio, almost 11%. Growing on in December 2025. In the previous quarter, we were at 9.6%. Now 11%. The highlight goes to micro, small, medium-sized companies growing 21%, 23%. And that's when we're gaining share. But looking at all of the portfolios, we are growing in all of them. Again, why are we growing? We are growing because we have a client base.

Marcelo de Araujo Noronha: We are growing because we have high penetration in all client segments in the verticals that we work in. And so on and so forth because we have an engaged team, a team that works supported by client management systems, GenAI, a better offering for clients. In a nutshell, it is these set of measures that we improved over this period. Looking at the portfolio and the loan quality indicators, they're all flat. Over 90 to NPL, totally easy. Over 15 days, if we look on the slide, it's absolutely flat. 10 million shares of this portfolio are captured in vermelf. We paid BRL 10.5 billion in 2025, BRL 20.5 billion, the reduction of problematic assets. Look at our stages. Stage 3 dropping quarter after quarter. Stage 1 increasing quarter after quarter with the evolution of the secured portfolio.

Marcelo de Araujo Noronha: So we are totally at ease with our loan portfolio and with our ability to continue to originate even more, particularly with some levers. Net interest income, 14.9%, increased. The client NII, up 17.4%. Again, this is 17.4% just growth. And here, this hits the bottom line, BRL 4.8 to 10.3 billion, growing 22.6%. Cost of risk, absolutely under control and quiet. Market NII delivering our expectation, the expectation of our treasuries. Commission income grew at the proportion that I mentioned before, but please note that I should highlight three: credit income, 14.4% increased. And high interest income. Consórcio, muito tracionado, crescendo 17.3%. There is a lot of traction, growing 17.3%. Eu posso olhar aqui para a carteira, operações de crédito, também está bem tracionado. Loan operations, we have a lot of traction as well. Why is it not growing?

Marcelo de Araujo Noronha: Because part of it is being deferred because of 4,966. But look at what happened with capital markets. 29.2% increase, full year 2025 compared to full year 2024. This is not divine providence. Again, this is investments. We changed the structure with Bruno's team and the whole team. We created the agribusiness team. We changed our investment banking structure to broaden the team and capture a lot more in DCM, M&A, and other line items such as project finance. And the result is this level of growth. We have a DCM share that a lot of investors grow in. That we had in 2022. So we grew. We're doing well in the rankings. And we continue to grow. But there are two offenders here that do not help these things. But they are two offenders here that do not help these things. Weak checking accounts and collections.

Marcelo de Araujo Noronha: Normally, in this market, pull the results down. But overall, we are delivering and we're delivering well. Operating expenses increased 8.5%. I told you and I will repeat it. Investments in technology. We grew 22% our technology investments 2025 compared to 2024. And we will continue to invest in technology. But if we break our expenses down into personal and administrative, we're growing 5% in line with the average IPCA. PR is one of the factor on expenses. Without profit sharing payment, increase would be 2.5%. We continue to reduce our footprint. If we look at the complete period, 2,800 points. And if we exclude LOPR and CLO, as we have been doing in past quarters, growth of operating expenses would be 7.2%. But in the Q&A, if you want, you can ask and we can debate administrative expenses. But overall, growth is negative.

Marcelo de Araujo Noronha: We have personnel expenses with this variable that I mentioned, the profit sharing program, and investments in technology, in transformation. For example, the implementation of the 59 Principal offices, almost 50 more will be added next year. So we continue to invest in reviewing our footprint, focusing on the necessary investments in each one of the departments to help us grow. Our insurance group, another strength of our organization, ROE 24.3%, but overall, 22%. Spoke about this already. We are growing in all lines with a lot of balance, client-based growth. I was checking this with Ivan earlier today. The results of insurance operations exceeding the guidance, 16.1%, and growth in operating results and not necessarily in financial results with technical provisions of 446%, growing more than 10% year-over-year. Moving to the end of my presentation, when we look at it, discipline of capital.

Marcelo de Araujo Noronha: But we will not lose sight of our horizon because the shares have to be adjusted by 5%. No problem. Can you imagine today with the level of conviction that we have, with the level of delivery that we have? I am super confident in our organization. I'm happy. I had a meeting just yesterday with our leadership team with the level of engagement we have in our company. So, André, over to you. Thank you very much for joining us in this call. Good morning, everyone. Thank you, Marcelo and Cassiano. I would like to let you know that Ivan, who is the CEO of our insurance company, is joining us remotely. To start the Q&A session, I would like to present three alternatives for questions. First, you can send your questions by email, investidores@bradesco.com.br. You can also send questions through WhatsApp, 1199974438238.

Marcelo de Araujo Noronha: The third option is by pointing your camera to the QR code and then ask a question. The first question comes from Pedro Leduc from Itaú BBA. Go ahead, Pedro. Good morning, Pedro. Good morning, everyone. Noronha, Cassiano, and André. Thank you for the presentation and congratulations on this wonderful year and your trajectory. My question is related to how you see the underlying business trends. So we could look at the NII guidance. Last, LLP. I mean, I think you're going to grow low two digits, slightly above the portfolio. I just want to understand what's behind it when we think about NII in isolation or LLP. I think these two things have to talk to one another. But to understand what is part of it so that I will have a good idea of your views about mix, spread, credit quality, as the year is just beginning.

Marcelo de Araujo Noronha: Okay, Pedro. I will start. Cassiano will start as well. It's good to see you again, Pedro. Our NII remains focused on our standard. I mean, we changed our mix for 2025. I mean, secured products remain our main lever. Obviously, the quality of our credit BU allows us to work in any credit line, secured and unsecured. We're very comfortable with the quality of our portfolio and the way we are operating it. The average rate should be maintained until the end of the year. And our LLP should grow in line with our operation. These are the main drivers of our NII, and we will maintain it with a very high degree of engagement. Okay, I have a few things to add. It's important to say and highlight what you just said. Portfolio mix, spread level, always focusing on risk-adjusted return. This is the goal.

Marcelo de Araujo Noronha: And I also talked about pricing. The pricing area comes to reinstate that point. I mean, we have some very important levers that go through different segments, like payroll loans. In all of its lines, I'm talking about public, INSS, and private. We have approximately slightly above 14% market share. But I would like to remind you that we have the lowest market share on the private side. So we have a lot of opportunities, and we already saw this level of growth. And I would just like to add that we are, I mean, we are placing our hiring offerings 24/7. And this is hyper-customized with microseconds that go and come and already respond, give us a response about the risk of the borrower, the company, and pricing, which is adjusted to risk. It's risk-adjusted pricing. Therefore, I'm saying that we will grow in payroll loans.

Marcelo de Araujo Noronha: We see a lot of traction coming from the clients. INSS has its own challenges, market challenges. It's not only ours. In previous quarters, year-over-year, we were growing 5%. And now, in this past quarter, we grew 6.8%. This is payroll loan, SME. We are still growing. We will continue to grow in secure lines backed by receivables, the direct receivables, or some LEAN, etc. So we will grow with auto for companies and individuals. We are very optimistic in terms of future growth with the credit quality that it's absolutely under control. I do not see any deviations. We are not concerned with that because, certainly, you know that we did our homework when it comes to portfolio management and our modeling schemes. You also mentioned an important aspect. You talked about NII growing slightly above the portfolio.

Marcelo de Araujo Noronha: So could you please highlight where this restructuring will focus more, whether it has to do with the number of branches? And Noronha, we understand that we are getting a lot of questions from our clients. Your guidance says that you will grow expenses by 8%. At the top, you said that 3% relates to investments and technology. But this also means for the rest of the bank, it will grow or is growing 5% in line with inflation. And just like you said, you already reduced 2.8 points or 2,800 points in the past two years. So how come expenses are not growing below inflation? That's why, in the consensus, I was hoping for a number close to BRL 20 million rather than BRL 27.5 million. We thought that the bank's core expense should be growing below inflation. Thank you. Well, thank you for your questions.

Marcelo de Araujo Noronha: If you look at our admin expenses and if you look at some of the lines in our full publication, you will see, okay, third-party services, maintenance, conservation, lease. All of these lines were down, and transportation, transportation of currency. So what are the detractors here? I'm just summarizing. There are some that are very positive. But technology, it grew 22%. And then when we look ahead, it will continue to grow. We will continue to invest to increase our competitiveness. Second, I mean, profit sharing. We increased profit and we paid out more. And the third detractor, I'm not going to refer to small lines. We had some changes on the advertising side, but we found three good opportunities at the end of the year and we decided to invest, like when we launched Principal. And that's when we did the coverage at the airports.

Marcelo de Araujo Noronha: But we will open, as I said before, about 50 offices earmarked for Principal. But we are also refurbishing some physical stores with Prime, meaning that we continue to invest in this transformation, making footprint adjustments, also increasing our capacity to invest more and reduce cost to serve in retail and digital. So our cost is 40 times lower. Well, thank you for your question. There is one more thing I would like to add in addition to the 3% you mentioned in terms of technology investment. 5% is only related to human resources. Well, that's important to remember. In addition to profit sharing, you will see that our expenses are very much under control. Oh, there is one more thing because you said that it was twice as what it was last year. If you look at 2024, it's very close to the number that we posted in 2024.

Marcelo de Araujo Noronha: Maybe the difference is about BRL 100 million, 40% higher on average or greater on average. There is another point related to efficiency. Our efficiency ratio was down by 2.2%, from 2.2% to 50%. So our ambition is to reach 40% by 2028, meaning that the trend is downwards in 2026. And this drop will be even more accentuated in 2028. When the top line grows a lot, it's just natural that some OPEX grow. You see growth with OPEX. And our top line growth will be almost 10% in 2026. Also, as you increase transactions, certainly the variable cost, I mean, is different, even with. Next question from Gustavo Schroder with Citi. Bom dia, André. Obrigado, Marcelo. Bom retorno. André, Marcelo, Cassiano, it's always good to see you. Parabéns aí pela retomada do role. Congratulations on resuming. Eu ia pensar pouquinho no ciclo.

Marcelo de Araujo Noronha: I would like to think a little about the investment cycle, more specifically, and linking with operating efficiency. E o índice de eficiência. É importante isso, Marcelo, também mostrar. Marcelo, you were very clear in showing. And I heard an interview you gave when you said that you won't stop investing, that the focus is to maintain competitiveness. Está pensando no futuro do banco. It means that you're thinking about the future of the bank in a sustained fashion. So let's understand. What part of the cycle would you say the bank is in, particularly in terms of technology investments or investments in new products or segments? Should we start thinking about the benefits coming from operating leverage, operating efficiency, and reducing efficiency ratio? Thinking that in 2026, revenue should continue to support this step-by-step ROE improvement so that in 2027 we'll start seeing the benefits of operating efficiency.

Marcelo de Araujo Noronha: Thank you. Thank you, Gustavo. Gustavo, eu diria que that we are in the middle of the cycle. We are not at the end of the cycle. If you look at our plan, we spoke about stretching this until 2028. Along that period, some things are quick wins. You capture the benefits in the short term. Other things you invest in, and you're going to reap the fruits later. But we'll continue to invest in the whole renovation of the bank. Look at some US banks and Asian banks and what they have been saying. In September, I was in Asia. I had an opportunity to talk with the CEOs of other Asian organizations, and to speak with peers of that region. And everyone is investing, again, in AI funds. We see opportunities to improve efficiency, and to gain competitiveness in our relationship with our clients.

Marcelo de Araujo Noronha: We will not stop investing. We want to improve our infrastructure, our architecture, constantly in terms of technology. So efficiency doesn't come only because we're going to invest less. And I'm going to give you my opinion in the opinion of all world banks. I don't see anyone stopping investing in technology. Technology will require growing, constant investing over time. That's my opinion. But we are going to gain in other lines. For example, lawsuits, bets, and areas where we are going to have a reduction, but not only in 2026. So we have to have efficiency gains. And we will have these efficiency gains. But this will be driven to the top line. Gustavo, you can ask me if I don't deliver the top line, but I want to deliver the top line, increase penetration, continue to grow, and delivering ROEs even better than what we currently have.

Marcelo de Araujo Noronha: My colleague yesterday said, "An airplane will never fly backwards." We are not going to fly backwards. It was 15.2% in this quarter, and we expect it to increase if we can deliver more and more, which was the case of the loan book in the past quarter. We will do it. Thank you, Gustavo. Next question from Daniel Vaz with Safra. Daniel? Bom dia, André, Noronha. Tudo bem? How are you doing? Tudo bem, tudo ótimo. Primeiro, parabéns pela entrega desses do início do plano de saúde e da deliveries since the beginning of this strategic plan. I think it's really about adapting our business strategy. We can see how dedicated the management is in readapting the bank and improving the whole quality of the portfolio while still growing. My question is focused on Cielo. Cielo is a strategic asset of yours.

Marcelo de Araujo Noronha: You're talking about integrating Cielo, particularly in FME. Integrating Cielo even more, which is already partially integrated. Você coloca a perspectiva Cielo contra a rede em termos de TPV no ano? Foi uma diferença muito grande. TPV, Cielo had a big difference compared to the network. So perhaps we're thinking about the big accounts, not FME. De trajetória que é importante. Eu queria ouvir primeiro você. An important difference in trajectory. So I'd like to hear from you. What is the strategy for the large accounts? Perhaps there's a lot of profitability, and you don't want to. É uma linha importante para o banco. Vocês avançaram muito bem ali com clientes de programas que advanced a lot, also in terms of governmental programs. And that's an important liquidity for the system. But the Cielo part, in terms of strategy, the strategy is not so clear to me in 2026, 2027.

Marcelo de Araujo Noronha: I'd like to understand what is the integration stage you're at. Well, thank you, Daniel, for the question. Number one, regarding Cielo. Cielo has also been undergoing a process of transformation, which is rather significant. Over the air, we created separate teams for the two partners. Today, we have a connection at different sizes: the wholesale and the corporate retail. Nessa transformação, o que a gente trabalhou junto com eles num plano foi para a gente estar mais. And we worked with them in a plan so that we'll be a lot more connected in a verticalized way, talking about cash and talking about affiliates. More than having a segregated company where I would originate something and they would work with it. No, they have to improve logistics. They did. They had to deliver Tap on Phone. They did deliver.

Marcelo de Araujo Noronha: They had to deliver a whole new pricing system for the zero. They did. They needed to deliver a connection to our app. We delivered it together. So all of that is done. But you're correct. I think that there were two or three cases. I don't remember. Two or three of large accounts. E a equipe do Stanley Lau foi muito importante. And the Stanley Lau team went to the limit, took it to the limit, and decided to give up the TPV, which was important, rather than losing profitability. A capacidade de crescer brutalmente até porque. We see an ability to grow and grow a lot because we're very accelerated in traction in SMEs. And we reduce attrition with our distribution channel. And this is an army of more than 5,000 manufacturers, in addition to all of the digital offering that we have.

Marcelo de Araujo Noronha: So we are going to move forward. You rest assured of that. But we are not going to throw away money with margins that are effectively very reduced. Regarding SMEs, our SMEs, we are growing not only in government lines. Our expectation is to continue to grow. Número muito parecido com o que a gente fez em 2025. We're very similar in number that we had in 2025. Indeed, we haven't got the final number, okay, Daniel? The final number regarding government or total government programs. But we have enough. And the estimate is that we had 25% to 26% market share. We were the bank that operated the most government lines last year. We have an initial estimate, our own estimate, not market estimates. But let's wait for official data. But that's kind of that level. We have good traction.

Marcelo de Araujo Noronha: But we can only do all that because of the kind of structuring we have in the SMEs segment, and also because of our technology deliveries, our ability to hire through our digital channels, the whole modeling of the credit BU portfolio management. So we are not granting credit just because we have a government guarantee. We have a lot of criteria. And it's always about our risk-adjusted returns. We have a program to price each one of these government programs. So we have a lot of traction. We ended the year with high traction, and we believe that we will continue to deliver good results. And Marcelo, from you. This is one of the important pillars of technology this year. We created our app for business with totally different technology embedded to it. And this is a very important reinforcement for this.

Marcelo de Araujo Noronha: Yeah, we're migrating 500,000 clients to this new experience that Cassiano just mentioned. So that's another important information. We are increasing our competitiveness with Cielo being integrated. Next question from Yuri Fernandes with J.P. Morgan. Obrigado, André. Bom dia, Noronha. Thank you, André. Good morning, Noronha. Cassiano, thank you. I mean, your long-term view. A visão de longo prazo, né? Your long-term view. I mean, I know sometimes it's not easy to invest in the future, but you are delivering improvements gradually. So thank you and congratulations for it. I mean, my question is about capital. I mean, CET1 is very close to 11. I think this quarter was 11.2. But for 2026, there might be some challenges. There are some prudential adjustments coming forward: 49.66, operating risk.

Marcelo de Araújo Noronha: Yeah, we're migrating 500,000 clients to this new experience that Cassiano just mentioned. So that's another important information. We are increasing our competitiveness with Cielo being integrated. Next question from Yuri Fernandes with J.P. Morgan. Obrigado, André. Bom dia, Noronha. Thank you, André. Good morning, Noronha. Cassiano, thank you. I mean, your long-term view. A visão de longo prazo, né? Your long-term view. I mean, I know sometimes it's not easy to invest in the future, but you are delivering improvements gradually. So thank you and congratulations for it. I mean, my question is about capital. I mean, CET1 is very close to 11. I think this quarter was 11.2. But for 2026, there might be some challenges. There are some prudential adjustments coming forward: 49.66, operating risk.

Marcelo de Araujo Noronha: So, can you please elaborate a little bit about the capital outlook, whether CET1 should remain at 11 or maybe possibly it will be slightly lower and you would gradually increase it? And in addition to that prudential adjustment, my other question has to do with your portfolio growth. I mean, you posted a very positive growth message. And like you said, the bank is well tractioned. But this 9.5% growth in the portfolio with retained profits, the retained profits in the middle of the guidance also might imply some capital consumption. So going back to my question, will it remain at 11 or it will go slightly above? So if you can tell me something else about CET1, I would appreciate it. Thank you. You were constantly provoking us about this topic, and I really enjoy your provocation. So thank you again for joining us today.

Marcelo de Araújo Noronha: So, can you please elaborate a little bit about the capital outlook, whether CET1 should remain at 11 or maybe possibly it will be slightly lower and you would gradually increase it? And in addition to that prudential adjustment, my other question has to do with your portfolio growth. I mean, you posted a very positive growth message. And like you said, the bank is well tractioned. But this 9.5% growth in the portfolio with retained profits, the retained profits in the middle of the guidance also might imply some capital consumption. So going back to my question, will it remain at 11 or it will go slightly above? So if you can tell me something else about CET1, I would appreciate it. Thank you. You were constantly provoking us about this topic, and I really enjoy your provocation. So thank you again for joining us today.

Marcelo de Araujo Noronha: There might be some fluctuations, but it will be around the 11 number. But our baseline is 11. But there might be some fluctuations for the reasons already explained by André. But it will be around 11, and this is important. Yuri, I would just, I'm not going to repeat what they said because this is what we expect to see. But two years ago, we told you that we have a lot of discipline when it comes to capital. And every year, we review our DTA or tax credit horizon for 10 years, meaning that we are constantly monitoring that. And we also evaluate all of the opportunities, as you put it yourself. Therefore, we are constantly looking at that. And back then, we said that we would have enough capital. But look at our allocation in our loan portfolio, turnover on the wholesale bank.

Marcelo de Araújo Noronha: There might be some fluctuations, but it will be around the 11 number. But our baseline is 11. But there might be some fluctuations for the reasons already explained by André. But it will be around 11, and this is important. Yuri, I would just, I'm not going to repeat what they said because this is what we expect to see. But two years ago, we told you that we have a lot of discipline when it comes to capital. And every year, we review our DTA or tax credit horizon for 10 years, meaning that we are constantly monitoring that. And we also evaluate all of the opportunities, as you put it yourself. Therefore, we are constantly looking at that. And back then, we said that we would have enough capital. But look at our allocation in our loan portfolio, turnover on the wholesale bank.

Marcelo de Araujo Noronha: Therefore, everything we are doing is very well planned and coordinated. So I can even go further. I think we can surprise you more than anything else. Just in terms of our CET or common equity. And of course, net income will grow and our return as well. Obviously, 14.67 is a challenge, more for some banks than others. É ao longo de 10 anos, mas veja, você tem intersecção aqui. For the period of 10 years. But there is an intersection here, which is 26, 27, and 28. 28 are the heaviest years. After that, when the horizon may change. Therefore, we are very confident about everything we are doing and in terms of the capital that we are allocating. Well, thank you. Thank you for your provocation. Obrigado, Yuri. Thank you, Yuri. Next question from Marcos with Santander. Nair, go ahead. Oi, pessoal. Bom dia.

Marcelo de Araújo Noronha: Therefore, everything we are doing is very well planned and coordinated. So I can even go further. I think we can surprise you more than anything else. Just in terms of our CET or common equity. And of course, net income will grow and our return as well. Obviously, 14.67 is a challenge, more for some banks than others. É ao longo de 10 anos, mas veja, você tem intersecção aqui. For the period of 10 years. But there is an intersection here, which is 26, 27, and 28. 28 are the heaviest years. After that, when the horizon may change. Therefore, we are very confident about everything we are doing and in terms of the capital that we are allocating. Well, thank you. Thank you for your provocation. Obrigado, Yuri. Thank you, Yuri. Next question from Marcos with Santander. Nair, go ahead. Oi, pessoal. Bom dia.

Marcelo de Araujo Noronha: INSS, that involves a lot of market discussions and things related to the management of INSS when it comes to payroll loans. But we are also very well positioned with INSS. But on the private side, we tend to increase our share. And as I said, we deploy models that are highly competitive 24/7. We are growing. We've seen that in the past quarter of 2025, the last quarter of last year. And we will see the same things happening throughout the year. Therefore, I'm very optimistic in terms of everything that we are doing to grow and to gain share. Thank you for your question. Next question from Renato Meloni with Autonomous. Bom dia, pessoal. Obrigada por todas as perguntas. Eu queria também enviar para meus colegas parabenizar também. I'd like to thank my colleagues and congratulate you on the deliveries. This plan was announced.

Marcelo de Araújo Noronha: INSS, that involves a lot of market discussions and things related to the management of INSS when it comes to payroll loans. But we are also very well positioned with INSS. But on the private side, we tend to increase our share. And as I said, we deploy models that are highly competitive 24/7. We are growing. We've seen that in the past quarter of 2025, the last quarter of last year. And we will see the same things happening throughout the year. Therefore, I'm very optimistic in terms of everything that we are doing to grow and to gain share. Thank you for your question. Next question from Renato Meloni with Autonomous. Bom dia, pessoal. Obrigada por todas as perguntas. Eu queria também enviar para meus colegas parabenizar também. I'd like to thank my colleagues and congratulate you on the deliveries. This plan was announced.

Marcelo de Araujo Noronha: I think the results showed the whole work that was done. Over the years, you showed a lot of R&D expansion. When we look at the guidance at the mid-range, it will be similar to that of Q4. So I'd like to understand: do you expect 2026 to be a year of accommodation, settling, or the uncertainty regarding the elections may do you be more conservative in the guidance? Now, moving to 2027. If we have this scenario of accommodation, I think that in 2027, we bring the ROEs to more reasonable levels. What would be the levers in revenue to increase profitability? Thank you. Renato, thank you for the question. I'd say that I don't see a year of settling for us. I think it's part of our plan. Again, we will improve step by step because we'll continue to invest to increase competitiveness.

Marcelo de Araújo Noronha: I think the results showed the whole work that was done. Over the years, you showed a lot of R&D expansion. When we look at the guidance at the mid-range, it will be similar to that of Q4. So I'd like to understand: do you expect 2026 to be a year of accommodation, settling, or the uncertainty regarding the elections may do you be more conservative in the guidance? Now, moving to 2027. If we have this scenario of accommodation, I think that in 2027, we bring the ROEs to more reasonable levels. What would be the levers in revenue to increase profitability? Thank you. Renato, thank you for the question. I'd say that I don't see a year of settling for us. I think it's part of our plan. Again, we will improve step by step because we'll continue to invest to increase competitiveness.

Marcelo de Araujo Noronha: I don't want to be repetitive, but this is our mantra. We focus on this all the time. Regarding the ROE, yesterday we were laughing about this. An aircraft will not fly backwards. So there's no chance the world will last in 15%. Actually, André, you're my witness, and Cassiano as well. I said a year ago I'm more optimistic. I'm more pointing to the upper range of the guidance than focusing on the lower band of the guidance. Of course, this year I'm a little more optimistic. So what we actually saw, Renato, is that the market somehow started bringing the expectation of a net income to BRL 30 to 31 billion. And the role of IR is to correct the course. You don't have a 30 to 40% gap year-over-year. Because we continue to invest in our transformation. Remember that. I see a higher and growing ROE.

Marcelo de Araújo Noronha: I don't want to be repetitive, but this is our mantra. We focus on this all the time. Regarding the ROE, yesterday we were laughing about this. An aircraft will not fly backwards. So there's no chance the world will last in 15%. Actually, André, you're my witness, and Cassiano as well. I said a year ago I'm more optimistic. I'm more pointing to the upper range of the guidance than focusing on the lower band of the guidance. Of course, this year I'm a little more optimistic. So what we actually saw, Renato, is that the market somehow started bringing the expectation of a net income to BRL 30 to 31 billion. And the role of IR is to correct the course. You don't have a 30 to 40% gap year-over-year. Because we continue to invest in our transformation. Remember that. I see a higher and growing ROE.

Marcelo de Araujo Noronha: Indeed, you mentioned the macroeconomic aspect. It is true. We should have a little more volatility in the second half because of the elections. That is only natural. But I am optimistic regarding what we are doing, our ability to compete in terms of the expectation of our economists. We'll have the GDP growth and unemployment rates very balanced. So we have a lot of opportunity for growth. With the interest rate cuts, if they happen a little faster, this will help some companies regarding their costs if they're a little bit more leveraged. So, of course, the macroeconomic environment does have an influence for all players in the market. But I see us with a lot of opportunities to grow the ROE. And if we can deliver superior absolute results, just like the loan book that grew 11% when in September it was growing 9.6%, we'll do it.

Marcelo de Araújo Noronha: Indeed, you mentioned the macroeconomic aspect. It is true. We should have a little more volatility in the second half because of the elections. That is only natural. But I am optimistic regarding what we are doing, our ability to compete in terms of the expectation of our economists. We'll have the GDP growth and unemployment rates very balanced. So we have a lot of opportunity for growth. With the interest rate cuts, if they happen a little faster, this will help some companies regarding their costs if they're a little bit more leveraged. So, of course, the macroeconomic environment does have an influence for all players in the market. But I see us with a lot of opportunities to grow the ROE. And if we can deliver superior absolute results, just like the loan book that grew 11% when in September it was growing 9.6%, we'll do it.

Marcelo de Araujo Noronha: We're not wasting time. We're not wasting space. And please remember what I explained here, Renato. We are well aligned. Increasing penetration. I spoke about Principal segment, SME, corporates doing well. The insurance company, I mean, they are delivering a lot. And there are several verticals. Earlier today in the press conference, even spoke about the continuity of growth in pension plans, active distribution there. So I see 2026 with optimism. I think that there is a structural issue in Brazil in terms of the fiscal aspect and the public debt. But if we're able to look at the public debt, regardless of the presidential candidate, if we improve that for 2027-28, we'll improve the market expectations. And he asked about the levers to increase profitability. Renato, I can say that it's almost everything: credit. We're growing it with the right drivers. O crédito público é de maior risco.

Marcelo de Araújo Noronha: We're not wasting time. We're not wasting space. And please remember what I explained here, Renato. We are well aligned. Increasing penetration. I spoke about Principal segment, SME, corporates doing well. The insurance company, I mean, they are delivering a lot. And there are several verticals. Earlier today in the press conference, even spoke about the continuity of growth in pension plans, active distribution there. So I see 2026 with optimism. I think that there is a structural issue in Brazil in terms of the fiscal aspect and the public debt. But if we're able to look at the public debt, regardless of the presidential candidate, if we improve that for 2027-28, we'll improve the market expectations. And he asked about the levers to increase profitability. Renato, I can say that it's almost everything: credit. We're growing it with the right drivers. O crédito público é de maior risco.

Marcelo de Araujo Noronha: Você viu no cartão de crédito. But we are not operating in the higher segment for credit card. Mas no conjunto, se a gente olha para a maior renda e lower income, o capital is lower. O crédito é uma alavanca importante. Credit is a big driver. O liability management, the liability management we've been doing and the growth that we've been posting. And we've posted a lot of growth. A própria receita de serviço que eu coloquei, o que é que é a alavanca principal naquelas linhas? Income, the main levers, and the detractor. Também é outra. The insurance group. As outras ligadas. And the payments, the consortium business, our consortium business at full speed, the ability for auto loans in our own channels and external channels, and so on and so forth. So I see a lot of opportunity because our organization is diversified.

Marcelo de Araújo Noronha: Você viu no cartão de crédito. But we are not operating in the higher segment for credit card. Mas no conjunto, se a gente olha para a maior renda e lower income, o capital is lower. O crédito é uma alavanca importante. Credit is a big driver. O liability management, the liability management we've been doing and the growth that we've been posting. And we've posted a lot of growth. A própria receita de serviço que eu coloquei, o que é que é a alavanca principal naquelas linhas? Income, the main levers, and the detractor. Também é outra. The insurance group. As outras ligadas. And the payments, the consortium business, our consortium business at full speed, the ability for auto loans in our own channels and external channels, and so on and so forth. So I see a lot of opportunity because our organization is diversified.

Marcelo de Araujo Noronha: We have different revenue sources at different moments. This year, we will review the terms, and this will increase cross-selling a lot. We spoke about the Bradesco Expresso, distributing a lot, more consortia operations, insurance, payroll deductible loans, but also Bradesco Financiamentos, selling more insurance. So we have a number of opportunities for cross-selling. Our business app that will have Cielo soon having insurance, dental insurance. So it's all part of operating leverage for us. Thank you, Renato. Next question from Thiago Batista with UBS. Thiago? Bom dia, André, Noronha, Cassiano. Good morning, everyone. A minha pergunta aqui vai fazer paralelo com o que você acabou de comentar aqui sobre a boa performance da seguradora. Quite strong performance at the insurance group. O tamanho da seguradora sobre o lucro total do consolidado era ali 20%? The share of the insurance group was about 20%. Chegou a quase 50%.

Marcelo de Araújo Noronha: We have different revenue sources at different moments. This year, we will review the terms, and this will increase cross-selling a lot. We spoke about the Bradesco Expresso, distributing a lot, more consortia operations, insurance, payroll deductible loans, but also Bradesco Financiamentos, selling more insurance. So we have a number of opportunities for cross-selling. Our business app that will have Cielo soon having insurance, dental insurance. So it's all part of operating leverage for us. Thank you, Renato. Next question from Thiago Batista with UBS. Thiago? Bom dia, André, Noronha, Cassiano. Good morning, everyone. A minha pergunta aqui vai fazer paralelo com o que você acabou de comentar aqui sobre a boa performance da seguradora. Quite strong performance at the insurance group. O tamanho da seguradora sobre o lucro total do consolidado era ali 20%? The share of the insurance group was about 20%. Chegou a quase 50%.

Marcelo de Araujo Noronha: It got to almost 50% in 2023. Eu vi os primeiros drops em quarters, e it became relevant again. Mais ou menos o lucro consolidado 40% veio da seguradora. In consolidated. Obviamente, parte disso é o médio da seguradora. A much higher percentage came from the insurance group. This is due to an ROE. Mas parte também é o banco que custe baixo. Pergunta aqui sobre tópicos. Primeira, qual que é a relevância quando a gente pensa no médio da seguradora? When we think about the metrics, how much of the results come from the insurance group? A potência da seguradora está atrapalhando, entre aspas, the power of the organization do banco. The consumption of DTAs se a seguradora começa a cair either in 2026 or DTAs start dropping or not. Obrigado, Thiago. Thank you, Thiago. Não atrapalha o primeiro.

Marcelo de Araújo Noronha: It got to almost 50% in 2023. Eu vi os primeiros drops em quarters, e it became relevant again. Mais ou menos o lucro consolidado 40% veio da seguradora. In consolidated. Obviamente, parte disso é o médio da seguradora. A much higher percentage came from the insurance group. This is due to an ROE. Mas parte também é o banco que custe baixo. Pergunta aqui sobre tópicos. Primeira, qual que é a relevância quando a gente pensa no médio da seguradora? When we think about the metrics, how much of the results come from the insurance group? A potência da seguradora está atrapalhando, entre aspas, the power of the organization do banco. The consumption of DTAs se a seguradora começa a cair either in 2026 or DTAs start dropping or not. Obrigado, Thiago. Thank you, Thiago. Não atrapalha o primeiro.

Marcelo de Araujo Noronha: But the insurance group is not getting in the way in terms of consumption of DTAs, and that is important to mention. What we have been seeing in terms of DTAs is that this is a year when we will try to neutralize the nominal portion. We will see a reduction of DTAs in 2027-2028, and this is part of our plan stretching until 2028, as Marcelo mentioned. That is super important. Eu acho que and I think that we've had the best allocation possible in managing the cost of capital. It has to do with the tax credit. E qual vai ser a segunda parte da pergunta? Well, the insurance group also pays dividends to the controlling shareholders. So you see, the insurance group isso é strength to use. Not the other way around. It is diversified. It is the biggest insurance group in Latin America.

Marcelo de Araújo Noronha: But the insurance group is not getting in the way in terms of consumption of DTAs, and that is important to mention. What we have been seeing in terms of DTAs is that this is a year when we will try to neutralize the nominal portion. We will see a reduction of DTAs in 2027-2028, and this is part of our plan stretching until 2028, as Marcelo mentioned. That is super important. Eu acho que and I think that we've had the best allocation possible in managing the cost of capital. It has to do with the tax credit. E qual vai ser a segunda parte da pergunta? Well, the insurance group also pays dividends to the controlling shareholders. So you see, the insurance group isso é strength to use. Not the other way around. It is diversified. It is the biggest insurance group in Latin America.

Marcelo de Araujo Noronha: We have a huge traction in the banks' channels to distribute insurance, but we also have external distribution of insurance, reaching out to other clients which were not necessarily reached out by our internal channels. But we don't hope that the insurance group will do less. We want them to do more. We have an expectation of growing even more. This is what we are seeing. But the bank is investing a lot. We're investing in technology, 22% in 2025 over 2024. The bank is investing in technology. Considering BF consortium and so on and so forth, what I see is over time we should have 2/3 from the bank, 1/3 from the insurance group. But if this means that the insurance group will grow a lot more and have a bigger share, I'm happy. I want to deliver more. And this is our expectation.

Marcelo de Araújo Noronha: We have a huge traction in the banks' channels to distribute insurance, but we also have external distribution of insurance, reaching out to other clients which were not necessarily reached out by our internal channels. But we don't hope that the insurance group will do less. We want them to do more. We have an expectation of growing even more. This is what we are seeing. But the bank is investing a lot. We're investing in technology, 22% in 2025 over 2024. The bank is investing in technology. Considering BF consortium and so on and so forth, what I see is over time we should have 2/3 from the bank, 1/3 from the insurance group. But if this means that the insurance group will grow a lot more and have a bigger share, I'm happy. I want to deliver more. And this is our expectation.

Marcelo de Araujo Noronha: We are very pleased with the results there and with the other related companies. So you'll see that we will be taking off in our ROE and absolute profit. Thank you. Next question from Matheus Guimarães with XP. Good morning. Bom dia, André. Bom dia, Cassiano e Noronha. Parabéns pelos resultados. Congrats on the results. E obrigado pela oportunidade de fazer a pergunta. Eu queria explorar pouquinho o tema de M&A. Eu acho que o Renato até trouxe o da SME topic. I think André talked about market share and that was relevant information. And historically this has been the bank's strength. But we've seen some competitors, even Newbank talking about SME. Of course, the concept of SME varies in terms of the size of the company. But what would we expect for 2026 in their portfolio?

Marcelo de Araújo Noronha: We are very pleased with the results there and with the other related companies. So you'll see that we will be taking off in our ROE and absolute profit. Thank you. Next question from Matheus Guimarães with XP. Good morning. Bom dia, André. Bom dia, Cassiano e Noronha. Parabéns pelos resultados. Congrats on the results. E obrigado pela oportunidade de fazer a pergunta. Eu queria explorar pouquinho o tema de M&A. Eu acho que o Renato até trouxe o da SME topic. I think André talked about market share and that was relevant information. And historically this has been the bank's strength. But we've seen some competitors, even Newbank talking about SME. Of course, the concept of SME varies in terms of the size of the company. But what would we expect for 2026 in their portfolio?

Marcelo de Araujo Noronha: Because given that this is a very relevant portfolio for you in terms of growth and even in terms of growth going forward. Matheus, thank you for your question. We are very pleased with our position. In restating our position, I must say that I've been working directly with Rocha. Rocha is the VP in charge of that area. But I've been working with all of my colleagues, Alexandre Panico, Mário Pescarolo, Marcelo, the entire corporate team or company team, and also wholesale bank with Bruno, etc., and the middle market team. But first of all, we always look at places, the central bank, in terms of assets, companies up to BRL 300 million a year. Because this allows us to draw a comparison. Competition in this area is very fierce. We always knew that. But our distribution strength é muito grande. We delivered a lot in digital channels.

Marcelo de Araújo Noronha: Because given that this is a very relevant portfolio for you in terms of growth and even in terms of growth going forward. Matheus, thank you for your question. We are very pleased with our position. In restating our position, I must say that I've been working directly with Rocha. Rocha is the VP in charge of that area. But I've been working with all of my colleagues, Alexandre Panico, Mário Pescarolo, Marcelo, the entire corporate team or company team, and also wholesale bank with Bruno, etc., and the middle market team. But first of all, we always look at places, the central bank, in terms of assets, companies up to BRL 300 million a year. Because this allows us to draw a comparison. Competition in this area is very fierce. We always knew that. But our distribution strength é muito grande. We delivered a lot in digital channels.

Marcelo de Araujo Noronha: The entire government progress through digital channels. A jornada é muito eficiente. We continue to invest. If there is a place to put money in SME, it is precisely SME, I mean micro, small, and mid-sized companies. The levers continue to be government lines. But also we provide funding to companies, vehicles, and other investments that have even founder guarantees, prepayments to suppliers. All of that is part of our journey. When you look at the digital needs with a new internet app, I mean a new app when we are migrating over 500,000 clients, the retention rate has been enormous and great growth opportunity. The commercial team in the back office is supported by GenAI and you too. We just deployed Salesforce back in 2024. So the company segment, and now we are expanding that to the entire business segment.

Marcelo de Araújo Noronha: The entire government progress through digital channels. A jornada é muito eficiente. We continue to invest. If there is a place to put money in SME, it is precisely SME, I mean micro, small, and mid-sized companies. The levers continue to be government lines. But also we provide funding to companies, vehicles, and other investments that have even founder guarantees, prepayments to suppliers. All of that is part of our journey. When you look at the digital needs with a new internet app, I mean a new app when we are migrating over 500,000 clients, the retention rate has been enormous and great growth opportunity. The commercial team in the back office is supported by GenAI and you too. We just deployed Salesforce back in 2024. So the company segment, and now we are expanding that to the entire business segment.

Marcelo de Araujo Noronha: Like I said, BRL 14.5 billion in 2025. So I'm saying between BRL 15 and 16 billion in 2026. Certainly, this is a number that certainly depends on interest on equity to be announced by the government. It's not a fixed number. This is just the best estimate. But we anticipate growth in IOE so that we can take more advantage of the embedded benefit. And secondly, is what Marcelo said, part of our investments bring about competitive gains. And like consortium, we've been highlighting that almost every quarter. We could also talk about auto-financing that had posted a good performance in the past three months. We have several examples, even with BBI. All of the companies are posting very strong performance. And this helps reduce the rate, the tax rate. That doesn't mean that this is operating weakness, but on the contrary, this is very well distributed.

Marcelo de Araújo Noronha: Like I said, BRL 14.5 billion in 2025. So I'm saying between BRL 15 and 16 billion in 2026. Certainly, this is a number that certainly depends on interest on equity to be announced by the government. It's not a fixed number. This is just the best estimate. But we anticipate growth in IOE so that we can take more advantage of the embedded benefit. And secondly, is what Marcelo said, part of our investments bring about competitive gains. And like consortium, we've been highlighting that almost every quarter. We could also talk about auto-financing that had posted a good performance in the past three months. We have several examples, even with BBI. All of the companies are posting very strong performance. And this helps reduce the rate, the tax rate. That doesn't mean that this is operating weakness, but on the contrary, this is very well distributed.

Marcelo de Araujo Noronha: Just because of the tax benefits you have, I think as your profitability generation improves, I would expect that tax rate to go up. And I think you mentioned the insurance tax rate is a bit lower. But just to understand in terms of the underlying sort of earnings potential of the business, do you think that keeps improving, or do you think this tax rate sort of remains low because of the tax benefits that you do have? Just to kind of think about excluding the tax rate, the ROE of the business, and how you see that continuing to evolve. Thank you. Primeiro comentário, Tito, em relação ao resultado operacional. Regarding the operational results of the group, the operational results of the group before taxes grew 27% in 2025. Very strong. Secondly, looking at 2026, the answer is no. Yes, we will post strong operational result growth.

Marcelo de Araújo Noronha: Just because of the tax benefits you have, I think as your profitability generation improves, I would expect that tax rate to go up. And I think you mentioned the insurance tax rate is a bit lower. But just to understand in terms of the underlying sort of earnings potential of the business, do you think that keeps improving, or do you think this tax rate sort of remains low because of the tax benefits that you do have? Just to kind of think about excluding the tax rate, the ROE of the business, and how you see that continuing to evolve. Thank you. Primeiro comentário, Tito, em relação ao resultado operacional. Regarding the operational results of the group, the operational results of the group before taxes grew 27% in 2025. Very strong. Secondly, looking at 2026, the answer is no. Yes, we will post strong operational result growth.

Marcelo de Araujo Noronha: It's not the case of the tax rate, but there are other companies that have different tax rates, which is the case of CLO. You see, there is a mix of tax rates. You should not forget that sometimes in the end of a period, there are some fiscal aspects of certain law here and there. For example, the insurance group benefited from that in the past quarter. They benefited from one law that affected the tax rate. So this is kind of what explains it. Nothing different, as André mentioned. Thank you very much, Tito. Next question from Eduardo Nishio with Genial. Nishio, it's always a pleasure to see you. Good morning. Oh, your microphone is muted, Nishio. Ainda está, Nishio. Still muted? No. No, we can't hear you. Still no sound. Vamos passar e voltar. Let's move on and then come back.

Marcelo de Araújo Noronha: It's not the case of the tax rate, but there are other companies that have different tax rates, which is the case of CLO. You see, there is a mix of tax rates. You should not forget that sometimes in the end of a period, there are some fiscal aspects of certain law here and there. For example, the insurance group benefited from that in the past quarter. They benefited from one law that affected the tax rate. So this is kind of what explains it. Nothing different, as André mentioned. Thank you very much, Tito. Next question from Eduardo Nishio with Genial. Nishio, it's always a pleasure to see you. Good morning. Oh, your microphone is muted, Nishio. Ainda está, Nishio. Still muted? No. No, we can't hear you. Still no sound. Vamos passar e voltar. Let's move on and then come back.

Marcelo de Araujo Noronha: Question comes from Andrew Geraghty from Morgan Stanley. Andrew. Hi everyone. Congratulations on the great results, and thank you for the opportunity to ask questions. I know you have discussed at some length credit growth and some expectations for payroll loans, secured loans. But I was hoping you could maybe elaborate a bit more on each of the different segments and how they fit into the loan portfolio guidance of 8.5 to 10.5, kind of where you're expecting better growth, maybe where you're expecting some weaker growth, and where there could be some upside by segment if possible. Okay. Thank you. Na verdade, como Marcelo comentou, well, actually, as Marcelo mentioned, we started 2026 stronger than we started 2025. We had a positive surprise in credit in Q4 2025. So we started the year already with a lot of traction. So we see a continuity of that movement.

Marcelo de Araújo Noronha: Question comes from Andrew Geraghty from Morgan Stanley. Andrew. Hi everyone. Congratulations on the great results, and thank you for the opportunity to ask questions. I know you have discussed at some length credit growth and some expectations for payroll loans, secured loans. But I was hoping you could maybe elaborate a bit more on each of the different segments and how they fit into the loan portfolio guidance of 8.5 to 10.5, kind of where you're expecting better growth, maybe where you're expecting some weaker growth, and where there could be some upside by segment if possible. Okay. Thank you. Na verdade, como Marcelo comentou, well, actually, as Marcelo mentioned, we started 2026 stronger than we started 2025. We had a positive surprise in credit in Q4 2025. So we started the year already with a lot of traction. So we see a continuity of that movement.

Marcelo de Araujo Noronha: So what do we see in terms of trends? Very strong SMEs, followed by individuals, and then wholesale, wholesale competing with the capital market funding, as Marcelo mentioned, sometimes very high tickets making a difference in Q4, positive difference for us. That doesn't happen always, though. I think that the expectation, the prospects for the segments would be this: SMEs, individuals, wholesale. We have traction across all fronts, and we're ready to capture all opportunities. Right, but Andrew, there are some different situations when you speak about the Prime segment. In principle, we have relationship products such as investments, the credit card with a value proposition that is unique for these clients, totally different experiences for these clients. The same goes for Prime, which is different than the relationship for INSS retirees. For that audience, we offer deductible loans. And when we get to Prime, in principle, mortgages.

Marcelo de Araújo Noronha: So what do we see in terms of trends? Very strong SMEs, followed by individuals, and then wholesale, wholesale competing with the capital market funding, as Marcelo mentioned, sometimes very high tickets making a difference in Q4, positive difference for us. That doesn't happen always, though. I think that the expectation, the prospects for the segments would be this: SMEs, individuals, wholesale. We have traction across all fronts, and we're ready to capture all opportunities. Right, but Andrew, there are some different situations when you speak about the Prime segment. In principle, we have relationship products such as investments, the credit card with a value proposition that is unique for these clients, totally different experiences for these clients. The same goes for Prime, which is different than the relationship for INSS retirees. For that audience, we offer deductible loans. And when we get to Prime, in principle, mortgages.

Marcelo de Araujo Noronha: So we have these mixes of products that sustain these segments. This is just to mention a few, mind you. In terms of companies, legal entities, we have a huge mix of products growing in small and medium-sized enterprises, in different lines, by the way, increasing our penetration there. With the wholesale bank, we are recycling the portfolio, more we call OPD book, origination for distribution, which is the case. When the capital market spread was very crushed, we can compromise risk-adjusted returns. So we don't work looking at that. So it is better to distribute than effectively keeping it in our books. We have a set of fees, which are also important for us in different lines of business. There's also cash management. It is a super important platform for small and medium-sized enterprises, as well as for the wholesale.

Marcelo de Araújo Noronha: So we have these mixes of products that sustain these segments. This is just to mention a few, mind you. In terms of companies, legal entities, we have a huge mix of products growing in small and medium-sized enterprises, in different lines, by the way, increasing our penetration there. With the wholesale bank, we are recycling the portfolio, more we call OPD book, origination for distribution, which is the case. When the capital market spread was very crushed, we can compromise risk-adjusted returns. So we don't work looking at that. So it is better to distribute than effectively keeping it in our books. We have a set of fees, which are also important for us in different lines of business. There's also cash management. It is a super important platform for small and medium-sized enterprises, as well as for the wholesale.

Marcelo de Araujo Noronha: We'll have a new technology platform, which over the year will bring us important improvements. That is another key point to improve profitability. Let's see if Nishio is back. We still cannot hear you. Not yet. Tirando o fone, será que melhora? Maybe if you remove your headset, maybe it will be better. We cannot hear. A gente está recebendo uma pergunta aqui sobre massificado. Receiving a question about mass income. É isso. Falar pouquinho sobre a perspectiva do massificado, então. Okay. Tell me a little bit about the mass income portfolio. Vai, Nishio. Vamos falar pouquinho sobre massificado? Se alguma coisa a gente complementa depois. If you need any more information, I can add. Okay. Mass income is probably one of the major transformations of our banking cycle since the beginning of our track record, our history. I think we are bringing some good news.

Marcelo de Araújo Noronha: We'll have a new technology platform, which over the year will bring us important improvements. That is another key point to improve profitability. Let's see if Nishio is back. We still cannot hear you. Not yet. Tirando o fone, será que melhora? Maybe if you remove your headset, maybe it will be better. We cannot hear. A gente está recebendo uma pergunta aqui sobre massificado. Receiving a question about mass income. É isso. Falar pouquinho sobre a perspectiva do massificado, então. Okay. Tell me a little bit about the mass income portfolio. Vai, Nishio. Vamos falar pouquinho sobre massificado? Se alguma coisa a gente complementa depois. If you need any more information, I can add. Okay. Mass income is probably one of the major transformations of our banking cycle since the beginning of our track record, our history. I think we are bringing some good news.

Marcelo de Araujo Noronha: I think Marcelo mentioned it quite well. 19 million clients are already fully digital in the mass retail with a totally different value proposition. But again, it's much easier to operate. Not only they use via GenAI, but there is a specialist that can help with a customized sale, which changes that paradigm of having an individual physically present in a branch. The second relevant aspect is the engagement, our capacity to serve that client with GenAI tools and integration tools that are very important to boost sales. And I think this has been a major evolution. We anticipate 45 million. So throughout the year, we will be fully digital. This will be our mass retail bank. This is a very important aspect. And today, 6 February, we already have 25 million digital clients because every week the numbers are growing with zero resistance, zero friction with clients.

Marcelo de Araújo Noronha: I think Marcelo mentioned it quite well. 19 million clients are already fully digital in the mass retail with a totally different value proposition. But again, it's much easier to operate. Not only they use via GenAI, but there is a specialist that can help with a customized sale, which changes that paradigm of having an individual physically present in a branch. The second relevant aspect is the engagement, our capacity to serve that client with GenAI tools and integration tools that are very important to boost sales. And I think this has been a major evolution. We anticipate 45 million. So throughout the year, we will be fully digital. This will be our mass retail bank. This is a very important aspect. And today, 6 February, we already have 25 million digital clients because every week the numbers are growing with zero resistance, zero friction with clients.

Marcelo de Araújo Noronha: This has been a very pleasing experience, very good experience. Behind all that, all of that is supported by a very good technological platform for individuals. This will encompass all the individuals. I think we've been telling you about that in the past quarters. This will certainly grow or help us decrease cost to serve, which has been significantly reduced. This has an important correlation to our footprint adjustment. Well, Nishio, thank you very much for joining us. I know you had a slight problem with the sound. But thank you. We are always available to talk to you and also to welcome you here at the bank. The same thing goes for our IR team. I think Cassiano gave you a good backdrop. Well, you saw more than 40 million at the end of 2026, starting with 19 million.

Marcelo de Araujo Noronha: But engagement is increasing and improving. Certainly, we are able to reduce direct cost to serve by 40-fold. We are very committed to what we're doing. There are a few people that look at the physical space, the physical world. We are testing different models all the time with our Bradesco Expresso so that we can address these topics. This is a challenge. In fact, I said that I went to Asia last September, and I heard comments from some banks. They have the same challenges we have when it comes to footprint adjustments, cost to serve, and consumers. Therefore, Nishio, we are sticking to our plan, and we will bring this year, and in particular in the second half, more information about this digital retail. Thank you. Thank you, Nishio. With that, we conclude the Q&A session.

Marcelo de Araújo Noronha: But engagement is increasing and improving. Certainly, we are able to reduce direct cost to serve by 40-fold. We are very committed to what we're doing. There are a few people that look at the physical space, the physical world. We are testing different models all the time with our Bradesco Expresso so that we can address these topics. This is a challenge. In fact, I said that I went to Asia last September, and I heard comments from some banks. They have the same challenges we have when it comes to footprint adjustments, cost to serve, and consumers. Therefore, Nishio, we are sticking to our plan, and we will bring this year, and in particular in the second half, more information about this digital retail. Thank you. Thank you, Nishio. With that, we conclude the Q&A session.

Marcelo de Araujo Noronha: Questions that couldn't be answered right now will be answered by our IR team. Before I turn the floor to Marcelo to his final comments, I must say that this presentation and the full material of this release is available in our IR website. Well, thank you, André. Thank you, Cassiano. I extend this thanks to all of our team who helped us in this video conference. Thank you, our audience, for your interest and for the time that you spent with us. It's what I said. I mean, this is the summary of our transformation: 8 quarters in a row delivering good numbers with the focus that I said, without losing sight of the plan that we set up for ourselves, step by step, but delivering improved ROE and improved absolute net income with a very engaged team, with clients, and with the Bradesco team.

Marcelo de Araújo Noronha: Questions that couldn't be answered right now will be answered by our IR team. Before I turn the floor to Marcelo to his final comments, I must say that this presentation and the full material of this release is available in our IR website. Well, thank you, André. Thank you, Cassiano. I extend this thanks to all of our team who helped us in this video conference. Thank you, our audience, for your interest and for the time that you spent with us. It's what I said. I mean, this is the summary of our transformation: 8 quarters in a row delivering good numbers with the focus that I said, without losing sight of the plan that we set up for ourselves, step by step, but delivering improved ROE and improved absolute net income with a very engaged team, with clients, and with the Bradesco team.

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Q4 2025 Banco Bradesco SA Earnings Call

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Q4 2025 Banco Bradesco SA Earnings Call

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