Q2 2026 Banco Bradesco SA Earnings Call

Marcelo de Araújo Noronha: 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 Q2 of 2026. We are talking to you straight from our studios at Cidade de Deus. Now it's 10:31, 6 August. We are here live and alive and kicking. If I even say this, probably the young generation doesn't even know what it is. 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 Q2 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 Q4 of this year. Here I bring a summary of our presentation.

Marcelo Noronha: 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 Q2 of 2026. We are talking to you straight from our studios at Cidade de Deus. Now it's 10:31, 6 August. We are here live and alive and kicking. If I even say this, probably the young generation doesn't even know what it is. 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 Q2 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 Q4 of this year. Here I bring a summary of our presentation.

Speaker #2: 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.

Speaker #2: We are talking to you straight from our studios at Cidade de Deus. Now it's 10:31, August 6, so we are here live and alive and kicking.

Speaker #2: I mean, if I even say this, probably the young generation doesn't even know what it is. So we are here broadcasting live from Cidade de Deus.

Speaker #2: I'm here to present our results, as you've seen from yesterday's publication. We reached R$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%.

Speaker #2: I mean, higher than what the market expected because the market expected that we would reach 16% ROAE in the last quarter of this year.

Speaker #2: So here I bring a summary of our presentation. I'm not going to elaborate in any of those topics, but loan portfolio is growing with more guarantees, with a very good risk-adjusted return.

André Carvalho: I'm not going to elaborate on any of those topics, loan portfolio is growing with more guarantees with a very good risk-adjusted return. In the past few 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 project. I'll talk to you about cause and effect. This is what I always do. What is behind this result, and why are we growing our loan portfolio? We posted growth of 11.6% year-over-year, even more than quarter-over-quarter. The portfolio reached BRL 1.137 billion. Even in CAGR, we posted 11.7% growth. Why is that? Well, that's explained because we have high penetration, commercial traction.

Marcelo Noronha: I'm not going to elaborate on any of those topics, loan portfolio is growing with more guarantees with a very good risk-adjusted return. In the past few 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 project. I'll talk to you about cause and effect. This is what I always do. What is behind this result, and why are we growing our loan portfolio? We posted growth of 11.6% year-over-year, even more than quarter-over-quarter. The portfolio reached BRL 1.137 billion. Even in CAGR, we posted 11.7% growth. Why is that? Well, that's explained because we have high penetration, commercial traction.

Speaker #2: In the past two months, our IR department has been talking to investment investors and they are asking us about what is happening to the macro landscape and the credit landscape.

Speaker #2: And I will talk about our standing vis-à-vis revenue and also we will talk about our accelerated transformation project. So I'll talk to you about cause and effect.

Speaker #2: This is what I always do. What is behind those results and why are we growing our loan portfolio? So we posted growth of 11.6% year over year, even more than quarter over quarter.

Speaker #2: So the portfolio reached 1.137 billion. And even CAGR, we posted 11.7% growth. And why is that? Well, that's explained because we have hyper-penetration commercial traction.

Speaker #2: We have a very good and well-equipped commercial team with a lot of intelligence behind it, but also we have digital channels. So I'll talk about the FGO.

André Carvalho: We have a very good and well-equipped commercial team with a lot of intelligence behind it, also we have digital channels. I'll talk about the FGO. We were the first bank to provide a very seamless FGO experience, and this is happening throughout the organization, and I'll 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 the other items and line items in our revenue. SME posted 16.1% year-over-year despite the baseline of the same period of last year. This is a big highlight. Large corporate grew 12.7% year-over-year, and I'll elaborate on large companies further on. Individuals, 8.4% growth year-over-year.

Marcelo Noronha: We have a very good and well-equipped commercial team with a lot of intelligence behind it, also we have digital channels. I'll talk about the FGO. We were the first bank to provide a very seamless FGO experience, and this is happening throughout the organization, and I'll 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 the other items and line items in our revenue. SME posted 16.1% year-over-year despite the baseline of the same period of last year. This is a big highlight. Large corporate grew 12.7% year-over-year, and I'll elaborate on large companies further on. Individuals, 8.4% growth year-over-year.

Speaker #2: We were the first bank to provide a very seamless FGO experience. And this is happening throughout the organization. And I'll go through all of that through my comments.

Speaker #2: So the cause is commercial traction in all business segments in all business lines, no exception. And this culminates in the growth of our loan portfolio.

Speaker #2: And further on, I'll talk about the other items and line items in our revenue. SME posted 16.1% year-over-year growth, despite the baseline of the same period last year.

Speaker #2: So this is a big highlight. Large corporates, Group 12.7% year over year. And I'll elaborate on large companies further on. And individuals, 8.4% growth year over year.

André Carvalho: That means that 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. I would like you to remember one number, because SME grew 5.1% quarter-over-quarter. This portfolio year-on-year grew 37 billion. Let's bear that number in mind because we will talk about it later on. I have some other figures for you here because they are in tune with what I said before. Where do we want to grow? Okay, earmarked credit, mostly FGO, FGI, mortgage, including the Plano Empresário. 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.

Marcelo Noronha: That means that 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. I would like you to remember one number, because SME grew 5.1% quarter-over-quarter. This portfolio year-on-year grew 37 billion. Let's bear that number in mind because we will talk about it later on. I have some other figures for you here because they are in tune with what I said before. Where do we want to grow? Okay, earmarked credit, mostly FGO, FGI, mortgage, including the Plano Empresário. 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.

Speaker #2: That means that we are growing in different lines and in all aspects that we wanted to grow. And we are also growing in customers with good ratings, with good credit modeling, and adequate policies in every segment we operate.

Speaker #2: And I would like you to remember one number because SME grew 5.1% quarter over quarter. This portfolio year on year grew 37 billion. So let's bear that number in mind because we will talk about it later on.

Speaker #2: And I have some other figures for you here because they are in tune with what I said before. Where do we want to grow?

Speaker #2: Okay, earmark credit. Mostly FGO, FGI, mortgage, including the businessman plan. So we grew 8.4. I mean, 21.4 when compared to 12.7 in the market.

Speaker #2: When I look at non-earmark, we grew slightly lower than the financial system. And then we have the other unsecured lines that we don't have a lot of risk appetite.

André Carvalho: We have the other unsecured lines that 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 are well tractioned in the payroll-deductible loan, and we are also very comfortable in direct credit to consumer. See here, corporate, we grew 14.7% versus 7.9%, which was the market growth. We are growing in the lines that we want to grow, and we are focusing our teams and our digital channels to these particular lines. Now, let's zoom in into our expanded loan portfolio. All of them have risk-adjusted return periodically assessed by myself included. Last week, we looked at two other portfolios. We are constantly looking at that and we make findings and make adjustments. We are not saying that we will look at this or that.

Marcelo Noronha: We have the other unsecured lines that 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 are well tractioned in the payroll-deductible loan, and we are also very comfortable in direct credit to consumer. See here, corporate, we grew 14.7% versus 7.9%, which was the market growth. We are growing in the lines that we want to grow, and we are focusing our teams and our digital channels to these particular lines. Now, let's zoom in into our expanded loan portfolio. All of them have risk-adjusted return periodically assessed by myself included. Last week, we looked at two other portfolios. We are constantly looking at that and we make findings and make adjustments. We are not saying that we will look at this or that.

Speaker #2: We grew more in corporate because we have more secure lines when it comes to corporate. And we are well-tractioned in the payroll deductible loan.

Speaker #2: And we are also very comfortable in direct credit to consumer. See here, corporate rigors have 14.7% versus 7.9%, which was the market growth. So we are growing in the lines that we want to grow and we are focusing our teams and our digital channels to these particular lines.

Speaker #2: Now, let's zoom in into our expanded loan portfolio. All of them have risk-adjusted return periodically assessed. By myself included. Last week we looked at two other portfolios.

Speaker #2: So we are constantly looking at that and we make findings and make adjustments. We are not saying that we will look at this or that.

Speaker #2: I mean, we are leaders in some areas, but the main focus is to look at risk-adjusted return. So here I'm referring to the whole city of bank with this level of growth.

André Carvalho: We are leaders in some areas, but the main focus is to look at risk-adjusted return. Here I'm referring to the wholesale bank with this level of growth. Where did we grow in the wholesale banking? We will talk about the agribusiness area, but we were leaders in fixed income origination, also securities, but part of our securities go to OPD portfolio, which is origination for distribution. We distribute something to the market, and then we go into the secondary market because you optimize capital and you optimize profits. That's why I say that wholesale portfolio has its ups and downs. It can go up and then it goes down. Here, we grew in the rural area or agribusiness with M&A opportunities in very specific lines. I would say that there are two operations that we did.

Marcelo Noronha: We are leaders in some areas, but the main focus is to look at risk-adjusted return. Here I'm referring to the wholesale bank with this level of growth. Where did we grow in the wholesale banking? We will talk about the agribusiness area, but we were leaders in fixed income origination, also securities, but part of our securities go to OPD portfolio, which is origination for distribution. We distribute something to the market, and then we go into the secondary market because you optimize capital and you optimize profits. That's why I say that wholesale portfolio has its ups and downs. It can go up and then it goes down. Here, we grew in the rural area or agribusiness with M&A opportunities in very specific lines. I would say that there are two operations that we did.

Speaker #2: And where did we grow in the wholesale banking? And we will talk about the agribusiness area, but we were leaders in fixed income origination, also securities, but part of our securities go to OPD portfolio, which is origination for distribution.

Speaker #2: So you distribute something to the market and then we go into the secondary market because you optimize capital and you optimize profits. That's why I say that wholesale portfolio has its ups and downs.

Speaker #2: It can grow, it can go up and then it goes down. Here we grew in the rural area or agribusiness with M&A opportunities in very specific lines.

Speaker #2: So I would say that there are two operations that we did. One in agribusiness, which was an M&A, with a AAA client. And then another client with very good ratings but with extremely liquidity.

André Carvalho: One in agribusiness, which was an M&A with an AAA client, and then another client with very good ratings, but with extreme liquidity. In these two transactions alone, we were able to post 6 billion BRL in the wholesale bank. We grew a lot in the Plano Empresarial or entrepreneur plan. We grew in different segments in the wholesale bank and also SME. This is a line that is posting considerable growth. We will also focus on the individual segment. Where else? We are the largest funders of aviation leasing. We have 64% market share. Everything that was done in this first quarter in terms of aircraft that were financed to companies and also wealth management is right here, 64%. We are leaders when it comes to aircraft leasing, particularly among those clients that have a very well-positioned and collateralized risk management.

Marcelo Noronha: One in agribusiness, which was an M&A with an AAA client, and then another client with very good ratings, but with extreme liquidity. In these two transactions alone, we were able to post 6 billion BRL in the wholesale bank. We grew a lot in the Plano Empresarial or entrepreneur plan. We grew in different segments in the wholesale bank and also SME. This is a line that is posting considerable growth. We will also focus on the individual segment. Where else? We are the largest funders of aviation leasing. We have 64% market share. Everything that was done in this first quarter in terms of aircraft that were financed to companies and also wealth management is right here, 64%. We are leaders when it comes to aircraft leasing, particularly among those clients that have a very well-positioned and collateralized risk management.

Speaker #2: So in these two transactions alone, we were able to post 6 billion BRLs in the wholesale bank, but we grew a lot in the plano empresario or entrepreneur plan.

Speaker #2: So we grew in different segments in the wholesale bank. And also SME, and this is a line that is posting considerable growth. And we will also focus on the individual segment.

Speaker #2: But where else? We are the largest funders of aviation leasing. We have 64% market share. Everything that was done in this first quarter in terms of aircrafts that were financed to companies and also wealth management is right here, 64%.

Speaker #2: So we are leaders when it comes to aircraft leasing, particularly among those clients that have a very well-positioned and collateralized risk management. And then I go back to wholesale and SME.

André Carvalho: I go back to wholesale and SME. I am talking about individuals plus SMEs in the expanded loan portfolio. This is the level of growth we posted. Here we are talking about origination. Origination, the average monthly origination in these lines for wholesale and SME, the average origination quarter-on-quarter was mostly in FGI and FGO and also mortgage, and also on the business side. In the other products where the risk appetite is lower, there was a decline in average origination by 7.7%. We move on to help you understand all of our tactic and strategic moves. Let us look at the mix of our loan portfolio, FGI and FGO origination. There is a lot of competition in this area by all incumbent banks. We were number one in market share with 21.6% market share.

Marcelo Noronha: I go back to wholesale and SME. I am talking about individuals plus SMEs in the expanded loan portfolio. This is the level of growth we posted. Here we are talking about origination. Origination, the average monthly origination in these lines for wholesale and SME, the average origination quarter-on-quarter was mostly in FGI and FGO and also mortgage, and also on the business side. In the other products where the risk appetite is lower, there was a decline in average origination by 7.7%. We move on to help you understand all of our tactic and strategic moves. Let us look at the mix of our loan portfolio, FGI and FGO origination. There is a lot of competition in this area by all incumbent banks. We were number one in market share with 21.6% market share.

Speaker #2: I'm talking about individuals plus SMEs in the expanded loan portfolio. This is the level of growth we posted. And then here we are talking about origination.

Speaker #2: Origination, the average monthly origination in these lines for wholesale and SME, the average origination quarter on quarter was mostly in FGI and FGO and also mortgage and also in the business side.

Speaker #2: In the other products where the risk appetite is lower, there was a decline in average origination by 7.7%. Now, we move on to help you understand all of our tactic and strategic moves.

Speaker #2: Let's look at the mix of our loan portfolio, FGI and FGO origination. This is there is a lot of competition in this area by all incumbent banks.

Speaker #2: So we were number one in market share with 21.6% market share. And the same thing goes for the entire year of 2025. And the quarter, our origination was up 52.7% in the second quarter.

André Carvalho: The same thing goes for the entire year of 2025. In the quarter, our origination was up 52.7% in Q2 when compared to Q1 of 2026. Let us take a look at retail and SME. Less available data by the central bank for those clients that earn up to BRL 2 million a year. This is something we have said since they unsettled the plan. We saw a new growth superseding 70% market share, and our FGI, FGO portfolio grew 64.5% year-over-year. This is an extremely secure portfolio by both funds. There are five lines of FGI and FGO, and we operate in all of them. Later on, I will talk about the effect of NPL over 90 and cost of risk. Credit card.

Marcelo Noronha: The same thing goes for the entire year of 2025. In the quarter, our origination was up 52.7% in Q2 when compared to Q1 of 2026. Let us take a look at retail and SME. Less available data by the central bank for those clients that earn up to BRL 2 million a year. This is something we have said since they unsettled the plan. We saw a new growth superseding 70% market share, and our FGI, FGO portfolio grew 64.5% year-over-year. This is an extremely secure portfolio by both funds. There are five lines of FGI and FGO, and we operate in all of them. Later on, I will talk about the effect of NPL over 90 and cost of risk. Credit card.

Speaker #2: When compared to the first quarter of 2026. But now let's take a look at retail and SME. So less available data by the central bank for those clients that earn up to 2 million a year.

Speaker #2: And this is something we have said since the onset of the plan. We saw new growth, surpassing 70% of market share in our FGI. Our FGO portfolio grew 64.5% year over year.

Speaker #2: This is an extremely secured portfolio by both funds. There are five lines of FGI and FGO, and we operate in all of them. But now I mean, later on I'll talk about the effects of NPL over 90 and cost of risk.

Speaker #2: I mean, now credit cards. You notice that the bulk of the growth is in high income with lower appetite in smaller income. We are being very cautious here, but we might bear in mind that we still have clients that have lower income.

André Carvalho: You notice that the bulk of the growth is in high income with lower appetite in smaller income. We are being very cautious here, we might bear in mind that we still have clients that have lower income. They pay on time. They are payroll clients. They are clients from our partnerships. These lower incomes, they are losing share in the portfolio in the past 30 months, there is still there. If we look at credit card delinquency, this delay comes from old cohorts. About 80% comes from cohorts from 2019, and most of the time, our clients that have their payroll with us, and they were in dire straits, or they lost their jobs, or they faced some difficulties. This does not apply to newer cohorts. There is something else here because this is a relationship product.

Marcelo Noronha: You notice that the bulk of the growth is in high income with lower appetite in smaller income. We are being very cautious here, we might bear in mind that we still have clients that have lower income. They pay on time. They are payroll clients. They are clients from our partnerships. These lower incomes, they are losing share in the portfolio in the past 30 months, there is still there. If we look at credit card delinquency, this delay comes from old cohorts. About 80% comes from cohorts from 2019, and most of the time, our clients that have their payroll with us, and they were in dire straits, or they lost their jobs, or they faced some difficulties. This does not apply to newer cohorts. There is something else here because this is a relationship product.

Speaker #2: They pay on time. They are payroll clients. They are clients from our partnerships. But these lower incomes, they're losing share in a portfolio in the past 30 months, but they're still there.

Speaker #2: But now, if we look at credit card delinquencies, this delay comes from old cohorts. I mean, about 80% comes from cohorts from 2019, and most of the time, our clients that have their payroll with us—they were in dire straits, or they lost their jobs, or they faced some difficulties.

Speaker #2: But this doesn't apply to new cohorts, newer cohorts. But there is something else here because this is a relationship product. We want and we are choosing the right clients with the right ratings with a very assertive credit policy.

André Carvalho: We want and we are choosing the right clients with the right ratings, with a very assertive credit policy. Every time we look at credit card, we are looking at cost of risk and provisions, but eight times more than what we used to do in the past. Let us go down to the next line, vehicles. We recorded growth of 26.8% year-over-year. We were leaders in one or other quadrants of vehicles, heavy vehicles, light vehicles, and semi-new or used vehicles. We were not leaders in new heavy vehicles because the risk-adjusted return here is lower. Last year, I told you that we will start operating in the vehicle segments because we saw some opportunities in some segments, and we thought that we could post growth, but we completely changed our operating circuit. We changed the platform.

Marcelo Noronha: We want and we are choosing the right clients with the right ratings, with a very assertive credit policy. Every time we look at credit card, we are looking at cost of risk and provisions, but eight times more than what we used to do in the past. Let us go down to the next line, vehicles. We recorded growth of 26.8% year-over-year. We were leaders in one or other quadrants of vehicles, heavy vehicles, light vehicles, and semi-new or used vehicles. We were not leaders in new heavy vehicles because the risk-adjusted return here is lower. Last year, I told you that we will start operating in the vehicle segments because we saw some opportunities in some segments, and we thought that we could post growth, but we completely changed our operating circuit. We changed the platform.

Speaker #2: And every time we look at credit card, we are looking at cost of risk and provisions, but eight times more than what we used to do in the past.

Speaker #2: But now let's go down to the next line, vehicles. We recorded growth of 26.8% year over year. So we were leaders in one of our other quadrants of vehicles.

Speaker #2: I mean, heavy vehicles, light vehicles, and semi-new or used vehicles. But we were not leaders in new heavy vehicles because the risk-adjusted return here is lower.

Speaker #2: And last year I told you that we will start operating in the vehicle segments because we saw some opportunities in some segments. And we thought that we could post growth, but we completely changed our operating circuit.

Speaker #2: We changed the platform. We added machine learning, AI behind pricing, risk modeling, credit policy, and also pricing for clients and dealers. But that customer experience changed completely.

André Carvalho: We added machine learning, AI behind pricing, risk modeling, credit policy, and also pricing for clients and dealers. With that, customer experience changed completely. We delivered different experiences for dealers and clients. With that, we were able to increase our share. When I talk about semi-new vehicles or used vehicles, I am not talking about 20-year-old vehicles or heavy vehicles. I am talking about vehicles that are 5 to 6 years old, depending on the ratings of our clients. We gain share where we have higher risk-adjusted return. If you look at the motorcycle market, our appetite is more moderate. There are other banks that operate in that line segment. This also means that when we grow this portfolio, on average, we say that we get 1% provision, cost of risk according to the 4966. But the client that is delinquent, there is always someone that is paying late.

Marcelo Noronha: We added machine learning, AI behind pricing, risk modeling, credit policy, and also pricing for clients and dealers. With that, customer experience changed completely. We delivered different experiences for dealers and clients. With that, we were able to increase our share. When I talk about semi-new vehicles or used vehicles, I am not talking about 20-year-old vehicles or heavy vehicles. I am talking about vehicles that are 5 to 6 years old, depending on the ratings of our clients. We gain share where we have higher risk-adjusted return. If you look at the motorcycle market, our appetite is more moderate. There are other banks that operate in that line segment. This also means that when we grow this portfolio, on average, we say that we get 1% provision, cost of risk according to the 4966. But the client that is delinquent, there is always someone that is paying late.

Speaker #2: We delivered different experiences for dealers and clients. With that, we were able to increase our share. When I talk about semi-new vehicles or used vehicles, I'm not talking about 20-year-old vehicles or heavy vehicles.

Speaker #2: I'm talking about vehicles that are like five to six years old, depending on the ratings of our clients. So, we gained share where we have higher risk-adjusted return.

Speaker #2: If you look at the motorcycle market, our appetite is more moderate. There are other banks that operate in that line segment. This also means that when we grow this portfolio, on average, we say that we get a 1% provision.

Speaker #2: I mean, cost of risk according to the 4966, but the client that is delinquent, I mean, there is always someone that is paying late right at start.

André Carvalho: Right at the start, we have 12% on top of the balance of that client in terms of cost of risk. That is why I like to explain that dynamic, because it is easier for you to understand what it means by over 90 and cost of risk. Payroll loan was up by 9.3%. If you were curious enough to look at the full year 2025, you would see that in some quarters, we were growing at the pace of 5%. That means that we expanded our growth. Well, where did we grow the most? Well, private. Year-over-year, we grew 88% in public. We continue to grow public payroll loan. We are the largest private bank when it comes to public payroll loan and private payroll loan. We are just behind two banks that are government banks.

Marcelo Noronha: Right at the start, we have 12% on top of the balance of that client in terms of cost of risk. That is why I like to explain that dynamic, because it is easier for you to understand what it means by over 90 and cost of risk. Payroll loan was up by 9.3%. If you were curious enough to look at the full year 2025, you would see that in some quarters, we were growing at the pace of 5%. That means that we expanded our growth. Well, where did we grow the most? Well, private. Year-over-year, we grew 88% in public. We continue to grow public payroll loan. We are the largest private bank when it comes to public payroll loan and private payroll loan. We are just behind two banks that are government banks.

Speaker #2: We have like 12% on top of the balance of that client in terms of cost of risk. So that's why I like to explain that dynamic because it's easier for you to understand what it means by over 90 and cost of risk.

Speaker #2: Payroll loan was up by 9.3%. If you were curious enough to look at the full year 2025, you would see that in some quarters we were growing at the pace of 5%.

Speaker #2: That means that we expanded our growth. But where did we grow the most? Well, private, year over year. We grew 88% in public. We continue to grow public payroll loan.

Speaker #2: We are the largest private bank when it comes to public payroll loan and private payroll loan. We are just behind two banks that are government banks.

André Carvalho: Delinquency on payroll loans, I think it is important to say, because this shows what we are doing in terms of portfolio management. Risk-adjusted return and risk control, in fact. When we look at payroll loan in general, the delinquency of the market is 3.3%, and ours is 2.5%. When we only look at the private segment, and this has made the news and the headlines, the market without Bradesco has an over 90 delinquency of 8.9%, whereas ours is 4.7%. Now moving on, I will talk about agribusiness. It grew almost 25% year-over-year, but look where it is stretching. In the wholesale bank, I mentioned one M&A event with a large client, and this is where wholesale bank increases with guarantees, secured AA and AAA clients. We do believe in Brazilian agribusiness.

Speaker #2: And the delinquency on payroll loans, I think it's important to say because this shows what we are doing in terms of portfolio management. So risk-adjusted return.

Marcelo Noronha: Delinquency on payroll loans, I think it is important to say, because this shows what we are doing in terms of portfolio management. Risk-adjusted return and risk control, in fact. When we look at payroll loan in general, the delinquency of the market is 3.3%, and ours is 2.5%. When we only look at the private segment, and this has made the news and the headlines, the market without Bradesco has an over 90 delinquency of 8.9%, whereas ours is 4.7%. Now moving on, I will talk about agribusiness. It grew almost 25% year-over-year, but look where it is stretching. In the wholesale bank, I mentioned one M&A event with a large client, and this is where wholesale bank increases with guarantees, secured AA and AAA clients. We do believe in Brazilian agribusiness.

Speaker #2: And risk control, in fact. But when we look at payroll loan in general, the delinquency of the market is 3.3%, and ours is 2.5%.

Speaker #2: When we only look at the private segment—and this has made the news and the headlines—the market, without Bradesco, has an over-90-day delinquency rate of 8.9%, whereas ours is 4.7%.

Speaker #2: And now, moving on, I'll talk about agribusiness. It grew almost 25% year over year, but look where its traction is—in the wholesale bank. I mentioned one M&A event with a large client.

Speaker #2: And this is where wholesale banking increases with guarantees. I mean, secured AA and AAA clients. We do believe in Brazilian agribusiness. We understand that this involves a cycle that is a bit more difficult for one reason or another, but there are many good clients there.

André Carvalho: We understand that this involves a cycle that is a bit more difficult for one reason or another, there are many good clients there. Therefore, we chose to continue to operate in this market with good ratings. If you look at the agribusiness individuals portfolio, if we look at June and then you compare it to December 2025, there is a decline of 0.6%. There is another example, our over 90 NPL, this segment, the market without Bradesco in March, it went from 7.3% to 7.6%, and Bradesco went from 5% to 4.6%, meaning that our delinquency is well under control without the John Deere bank that has higher delinquency, which also affects our NPL, 15% to 90%. Our market share in Brazilian agribusiness is about 12%. This is just an estimate. Our share in court reorganization is 3.5%, and we monitor this very closely.

Marcelo Noronha: We understand that this involves a cycle that is a bit more difficult for one reason or another, there are many good clients there. Therefore, we chose to continue to operate in this market with good ratings. If you look at the agribusiness individuals portfolio, if we look at June and then you compare it to December 2025, there is a decline of 0.6%. There is another example, our over 90 NPL, this segment, the market without Bradesco in March, it went from 7.3% to 7.6%, and Bradesco went from 5% to 4.6%, meaning that our delinquency is well under control without the John Deere bank that has higher delinquency, which also affects our NPL, 15% to 90%. Our market share in Brazilian agribusiness is about 12%. This is just an estimate. Our share in court reorganization is 3.5%, and we monitor this very closely.

Speaker #2: Therefore, we chose to continue to operate in this market. We get ratings. But if you look at the agribusiness individuals portfolio, if we look at June and then you compare it to December 2025, there is a decline of 0.6%.

Speaker #2: And then there is another example—our over-90 NPL of this segment, the market without Bradesco in March, went from 7.3% to 7.6%.

Speaker #2: And BRADESCO went from 5 to 4.6, meaning that our delinquency is well under control without the John Deere bank that has higher delinquency which also affects our NPL 15 to 90.

Speaker #2: Our market share in Brazilian agribusiness is about 12%. This is just an estimate. But our share in court reorganization is 3.5%, and we monitor this very closely.

André Carvalho: This percentage is much lower when compared to the market. This is good to show you how we manage our portfolio. We manage in terms of risk-adjusted returns and with a lot of portfolio control, being very selective in terms of our clients. Here, I comment on secure lines. This is a production chart that refers to the expanded loan portfolio for individuals and SMEs. Looking at the chart, origination, FGI and FGO, and mortgage for individuals and also corporate, gained traction in the last quarter. There is also payroll loan here. This also contemplates payroll loan. It is not just clean credit. Well, first of all, the absolute number goes down because this is fine-tuning of risk, I would say, new modeling, risk appetite. The spreads in the other lines, they were up 11% when compared to Q3 2025.

Speaker #2: So, this percentage is much lower when compared to the market. And this is good to show you how we manage our portfolio. We manage it in terms of risk-adjusted returns and with a lot of portfolio control, being very selective in terms of our clients.

Marcelo Noronha: This percentage is much lower when compared to the market. This is good to show you how we manage our portfolio. We manage in terms of risk-adjusted returns and with a lot of portfolio control, being very selective in terms of our clients. Here, I comment on secure lines. This is a production chart that refers to the expanded loan portfolio for individuals and SMEs. Looking at the chart, origination, FGI and FGO, and mortgage for individuals and also corporate, gained traction in the last quarter. There is also payroll loan here. This also contemplates payroll loan. It is not just clean credit. Well, first of all, the absolute number goes down because this is fine-tuning of risk, I would say, new modeling, risk appetite. The spreads in the other lines, they were up 11% when compared to Q3 2025.

Speaker #2: And here, I comment on secured lines. This is a production chart. That refers to the expended loan portfolio for individuals and SMEs. Looking at the chart, origination FGI and FGO and mortgage for individuals and also corporate.

Speaker #2: Gain traction in the last quarter. There is also payroll loan here, right? This also contemplates payroll loan. It's not just clean credit. But the spreads, well, first of all, the absolute number goes down because this is fine-tuning of risk, I would say.

Speaker #2: New modeling, risk appetite, and the spreads in the other lines were up 11% when compared to the third quarter of 2025. But now, looking at the right side of the chart, we have the guarantee claim periods from government programs like FGI and FGO.

André Carvalho: Now, looking at the right side of the chart, we have the guarantee claim periods from government programs like FGI and FGO. They take 180 days or 185 days to receive payment. We are within the stop loss because there are rules that apply here. At FGO, you have 100% coverage and still correct it for inflation. Our stop loss is foreseen for each one. It depends on where our risk appetite is. There are two phenomena here. The first has to do with the cost of risk, because according to the 4966, while you wait for the payment period, for the guarantee payment period for companies which had maturities in grace period. After the grace period, maybe they couldn't pay, they were delayed in their payments, then we call in provisions. It is different than when compared to a clean credit.

Marcelo Noronha: Now, looking at the right side of the chart, we have the guarantee claim periods from government programs like FGI and FGO. They take 180 days or 185 days to receive payment. We are within the stop loss because there are rules that apply here. At FGO, you have 100% coverage and still correct it for inflation. Our stop loss is foreseen for each one. It depends on where our risk appetite is. There are two phenomena here. The first has to do with the cost of risk, because according to the 4966, while you wait for the payment period, for the guarantee payment period for companies which had maturities in grace period. After the grace period, maybe they couldn't pay, they were delayed in their payments, then we call in provisions. It is different than when compared to a clean credit.

Speaker #2: They take 180 days or 185 days to receive payment, so we are within the stop-loss because there are rules that apply here. So, at FGO, you have 100% coverage and still correct it for inflation.

Speaker #2: And then our stop loss is foreseen for each one. So it depends on where our risk appetite is. But there are two phenomena here.

Speaker #2: The first has to do with the cost of risk because according to the 4966, why are you wait for the payment period for the guarantee payment period for companies which maturity in the grace had maturities in grace period after the grace period, maybe they couldn't pay, they were delayed in their payments, then we call in provision.

Speaker #2: It's different than when compared to a clean credit. So you get provisions until the guarantee claim period and then we just return with the provision amount.

André Carvalho: We get provisions until the guarantee claim period, and we just return with the provision amount. There is a second aspect here that puts pressure on overnight with maturities and grace periods. Our production peak of FGI and FGO. Last year, when we became leaders, the period was between March and October of last year. Therefore, now we see maturity peaks in the grace period, even though we are close to 50% of this entire scenario. We move to the loan quality indicators, like overnight was up 10 basis points, so it is flat for us. Individuals, 10 basis points as well. SME, government loans, FGI and FGO, it happened in the previous quarter and this Q1. It puts pressure on overnight NPL until the curve stops growing. It takes some time, and we will get normal after the guarantee is paid.

Marcelo Noronha: We get provisions until the guarantee claim period, and we just return with the provision amount. There is a second aspect here that puts pressure on overnight with maturities and grace periods. Our production peak of FGI and FGO. Last year, when we became leaders, the period was between March and October of last year. Therefore, now we see maturity peaks in the grace period, even though we are close to 50% of this entire scenario. We move to the loan quality indicators, like overnight was up 10 basis points, so it is flat for us. Individuals, 10 basis points as well. SME, government loans, FGI and FGO, it happened in the previous quarter and this Q1. It puts pressure on overnight NPL until the curve stops growing. It takes some time, and we will get normal after the guarantee is paid.

Speaker #2: But there is a second aspect here that puts pressure on over 90 with maturities and grace periods. Our production peak of FGI and FGO—I mean, last year when we became leaders, the period was between March and October of last year.

Speaker #2: Therefore, now we see maturity peak. In the grace period, even though we are close to 50% of this entire scenario. And then we move to look loan quality indicators like over 90 was up 10 basis points.

Speaker #2: So it's flat for us. I mean, individuals 10 basis points as well. But SMEs, government lines, FGI and FGO, it happened in the previous quarter and this quarter launch.

Speaker #2: So it puts pressure on over 90 NPL until the curve stops growing. It takes some time. And then we will get normal after the guarantees paid.

André Carvalho: We are not worried about that. Wholesale is 0.2%. I move to the loan portfolio by stage. There is a footnote here that talks about NPL 15 to 90 with 30 basis points of variation. This mostly comes from the Banco John Deere that had some variations in Q3. This level of delinquency was up significantly. We know that all of the equipment has a chip and there is a recovery time, an updating time for some clients. The equipment is sitting there, it is still operating, all you have to do is update their payment. Look at stage 3. We had 10 basis points as a variation.

Speaker #2: So we are not worried about that. Wholesale is 0.2%. And then I’ll move to the loan portfolio by stages. I mean, there is a footnote here that talks about NPL 15 to 90, with 30 basis points of variation.

Marcelo Noronha: We are not worried about that. Wholesale is 0.2%. I move to the loan portfolio by stage. There is a footnote here that talks about NPL 15 to 90 with 30 basis points of variation. This mostly comes from the Banco John Deere that had some variations in Q3. This level of delinquency was up significantly. We know that all of the equipment has a chip and there is a recovery time, an updating time for some clients. The equipment is sitting there, it is still operating, all you have to do is update their payment. Look at stage 3. We had 10 basis points as a variation.

Speaker #2: This mostly comes from the John Deere bank that had some variations in the third quarter. So this level of delinquency. Was up significantly, but we know that there all of the equipment has a chip and there is a recovery time and updating time for some clients.

Speaker #2: I mean, the equipment is sitting there, it's still operating. Then all you have to do is update their payments. So look at stage three.

Speaker #2: We had 10 BPS as a variation. That came from a specific client from the wholesale bank because the bulk of the provision came from last quarter and we did a little bit this quarter.

André Carvalho: That came from a specific client from the wholesale bank because the bulk of the provision came from last quarter, and we did a little bit this quarter with duly provision, but part of it was derivative and securities, and this client restructured himself in the market with bondholders. It's a very well-known client, but we do not comment on the specific cases. It was that specific case that generated this. Stage 2 that has a 0.6 variation was basically justified by FGI and FGO with 0.2 approximately, slightly above that. The Banco John Deere as well, that put pressure on this KPI that transfers to stage 2. The remaining is diluted in the portfolio, even though our delinquency levels are lower when compared to the market.

Marcelo Noronha: That came from a specific client from the wholesale bank because the bulk of the provision came from last quarter, and we did a little bit this quarter with duly provision, but part of it was derivative and securities, and this client restructured himself in the market with bondholders. It's a very well-known client, but we do not comment on the specific cases. It was that specific case that generated this. Stage 2 that has a 0.6 variation was basically justified by FGI and FGO with 0.2 approximately, slightly above that. The Banco John Deere as well, that put pressure on this KPI that transfers to stage 2. The remaining is diluted in the portfolio, even though our delinquency levels are lower when compared to the market.

Speaker #2: It was duly provisioned, but part of it was derivatives and securities, and this client restructured himself in the market with bondholders. I mean, it's a very well-known client, but we do not comment on specific cases.

Speaker #2: But was that specific case that generated this? But stage two that has a 0.6 variation was basically justified by FGI and FGO with 0.2 approximately slightly above that.

Speaker #2: And the John Deere Bank as well, that put pressure on this KPI, which is transferred to Stage 2. And the remaining is diluted in the portfolio, even though our delinquency levels are lower when compared to the market.

André Carvalho: Now looking at the restructured portfolio that was decreasing with time, then we said that we are reaching a balance here. This variation you see comes from that client again that went to stage 3, that is obviously here in the restructured portfolio. If it weren't for that one, even with the Desenrola Brasil program, we would have let that go. It's covered today, totally covered today. It's absolutely within what we anticipate in terms of expected loss. Desenrola Brasil, we did this much into June, and this is open for everyone to see. What was the impact of this overnight? Cost of risk and the result, that is almost zero, is null. 0.00 something else, but almost nothing. This was enforced into July, then it was extended to August and in Q3, we will go back and talk about it again.

Speaker #2: But now looking at the restructure portfolio that was decreasing with time. And then we've had that we are reaching a balance here. But this variation you see comes from that client again that went to stage three.

Marcelo Noronha: Now looking at the restructured portfolio that was decreasing with time, then we said that we are reaching a balance here. This variation you see comes from that client again that went to stage 3, that is obviously here in the restructured portfolio. If it weren't for that one, even with the Desenrola Brasil program, we would have let that go. It's covered today, totally covered today. It's absolutely within what we anticipate in terms of expected loss. Desenrola Brasil, we did this much into June, and this is open for everyone to see. What was the impact of this overnight? Cost of risk and the result, that is almost zero, is null. 0.00 something else, but almost nothing. This was enforced into July, then it was extended to August and in Q3, we will go back and talk about it again.

Speaker #2: That is obviously here in the restructured portfolio. If it weren't for that one, even with the dizzying HOLA program, we would have let that go.

Speaker #2: And it's covered today—totally covered today. It's absolutely within what we anticipated in terms of expected loss. Regarding Diz, in HOLA, we did this much in June, and this is open for everyone to see.

Speaker #2: But what was the impact of this overnight? I mean, cost of risk and result. That is almost zero. It's no. 0.00 something else, but almost nothing.

Speaker #2: I mean, this was enforced into July and then it was extended to August in the third quarter. We will go back and talk about it again.

Speaker #2: But our secured portfolio was it's up to 61%. I mean, 69% secured loans and individuals. This is cause and effect. This is a work of diligent portfolio management.

André Carvalho: Our secured portfolio is up to 61%, I mean, 69% secured loans in individuals. This is cause and effect. This is a work of diligent portfolio management. We are working more commonly with secured loans and in the composition of the mix that increases secured loans. What is the other effect of the growth of our loan portfolio? It's the growth of total revenue that reached 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. I will comment on that later on. Also the insurance group that has been shown great resilience every quarter with good returns at this level of growth of 8.3%. Here for Q2 2024 to Q2 2026, our CAGR, this is the average growth, is 12.5%.

Marcelo Noronha: Our secured portfolio is up to 61%, I mean, 69% secured loans in individuals. This is cause and effect. This is a work of diligent portfolio management. We are working more commonly with secured loans and in the composition of the mix that increases secured loans. What is the other effect of the growth of our loan portfolio? It's the growth of total revenue that reached 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. I will comment on that later on. Also the insurance group that has been shown great resilience every quarter with good returns at this level of growth of 8.3%. Here for Q2 2024 to Q2 2026, our CAGR, this is the average growth, is 12.5%.

Speaker #2: We are working more commonly with secured lines. And in the composition of the mix, that increases. Secured lines. What is the other effect of the growth of our loan portfolio?

Speaker #2: Total revenue reached R$37.6 billion, up 10.3% year on year. Total net interest income was almost R$20.9 billion, and fee and commission income R$10.5 billion.

Speaker #2: I will comment on that later on. And also the insurance group that has been shown great resilience every quarter with good returns at this level of growth of 8.3%.

Speaker #2: And here for the second quarter of '24 to second quarter of '26, our CAGR, this is the average growth, is 12.5%. So the effect of the loan portfolio which has more guarantees generates this.

André Carvalho: The effect of the loan portfolio, which has more guarantees, generates this. I also read some comments of some investors

Marcelo Noronha: The effect of the loan portfolio, which has more guarantees, generates this. I also read some comments of some investors

Speaker #2: And I also read some comments from investors about our client NII and the market NII. I would like to highlight that the market NII was $700 million this quarter, growing by almost 21.7%, thanks to the competent work of our treasury team who have been working very well in trading, ALM and energy desk, client desk, and so on.

Marcelo de Araújo Noronha: About our client NIIs and the market NII, I would like to highlight the market NII. There was BRL 700 million in this quarter, growth by almost 21.7%, thanks to the competent work of our treasury team, working very well in trading, ALM, and energy desk, client desk, and so on. People wrote that top was the market NII that grew 22%. When I look at the client NII, almost 14% growth year on year. If you look at the figures, this market NII year on year was BRL 150 million approximately, so it increased by twofold. Well, it grew a lot. When we look at the client NII, look at this, it went from BRL 17.8 billion to BRL 20.2 billion, BRL 2.5 billion of absolute growth.

Marcelo Noronha: About our client NIIs and the market NII, I would like to highlight the market NII. There was BRL 700 million in this quarter, growth by almost 21.7%, thanks to the competent work of our treasury team, working very well in trading, ALM, and energy desk, client desk, and so on. People wrote that top was the market NII that grew 22%. When I look at the client NII, almost 14% growth year on year. If you look at the figures, this market NII year on year was BRL 150 million approximately, so it increased by twofold. Well, it grew a lot. When we look at the client NII, look at this, it went from BRL 17.8 billion to BRL 20.2 billion, BRL 2.5 billion of absolute growth.

Speaker #2: And then people wrote that top was the market NII that grew 22%. But when I look at the client NII, almost 14% growth year on year.

Speaker #2: But if you look at the figures, this market NII year on year was 350 million approximately. So it's increased by twofold. Well, it grew a lot.

Speaker #2: And when we look at the client NII, look at this, it went from 17.8 billion to 20.2 billion. 2.5 billion of absolute growth. But the client NII is not only from the loan portfolio, the liability grew relevantly and it drove this growth, this total growth of the client NII.

Marcelo de Araújo Noronha: The client NII is not only from the loan portfolio, the liability grew relevantly, and it drove this total growth of the client NII. The cost of risk grew, it was flat in proportion at 3.5% with all those points I mentioned of FGO, FGI, John Deere Bank. The client NII net of provision at 4.5%, reflecting obviously the cost of risk over here. The growth is not significant. If you look at our loan portfolio at the end of 2023, you will see that we grew in 30 months, 30%. When you grow, you call more provisions, so the cost of risk goes up, in addition to everything I've mentioned. Going on to the new topic, which is a consequence of also the traction in the commercial side and client penetration. We grew 1.7% in fee and commission income.

Marcelo Noronha: The client NII is not only from the loan portfolio, the liability grew relevantly, and it drove this total growth of the client NII. The cost of risk grew, it was flat in proportion at 3.5% with all those points I mentioned of FGO, FGI, John Deere Bank. The client NII net of provision at 4.5%, reflecting obviously the cost of risk over here. The growth is not significant. If you look at our loan portfolio at the end of 2023, you will see that we grew in 30 months, 30%. When you grow, you call more provisions, so the cost of risk goes up, in addition to everything I've mentioned. Going on to the new topic, which is a consequence of also the traction in the commercial side and client penetration. We grew 1.7% in fee and commission income.

Speaker #2: The cost of risk grew, but it was flat in proportion at 3.5% with all those points I mentioned of FGO, FGI, John Deere bank.

Speaker #2: And the client NII, net of provision, was 4.5, reflecting, obviously, the cost of risk. But the growth is not significant. If you look at our loan portfolio at the end of '23, you will see that we grew 30% in 30 months.

Speaker #2: And when you grow, you call more provision. So the cost of risk goes up in addition to everything I've mentioned. Going on to the new topic, which is a consequence of also the traction in the commercial side and client penetration we grew 1.7 in fee and commission income.

Speaker #2: We believe that we are within the guidance. I would like to highlight the resilience here. Consortiums and also asset management are both growing at 10%, but custodian brokerage services at 26.4%.

Marcelo de Araújo Noronha: We believe that we are within the guidance. I would like to highlight the resilience over here, consortiums and also asset management, both growing at 10%. Custodian brokerage services, 26.4%, and I highlight the highest result that we've had with our agro brokerage and agro markets. They are both combined and they are working in synergy with only one broker, with services for individuals, supporting wealth, and also for institutional clients with their respective teams. When you open the whole earnings release of the fee and commission income, you will see the following. You will have 9 lines, strictly speaking, we have a diversification of revenue that is great, which at least 15. I'm not talking only about the credit card of separating the annuity.

Marcelo Noronha: We believe that we are within the guidance. I would like to highlight the resilience over here, consortiums and also asset management, both growing at 10%. Custodian brokerage services, 26.4%, and I highlight the highest result that we've had with our agro brokerage and agro markets. They are both combined and they are working in synergy with only one broker, with services for individuals, supporting wealth, and also for institutional clients with their respective teams. When you open the whole earnings release of the fee and commission income, you will see the following. You will have 9 lines, strictly speaking, we have a diversification of revenue that is great, which at least 15. I'm not talking only about the credit card of separating the annuity.

Speaker #2: And I highlight the highest result that we've had with our Ag Growth brokerage and Agro Markets. They are both combined, and they are working in synergy with only one broker, with services for individuals supporting wealth, and also for institutional clients with their respective teams.

Speaker #2: But when you open the whole earnings release of the fee and commission income, you will see the following. You will have like nine lines but strictly speaking, we have a diversification of revenues with.

Speaker #2: It's great. Which is at least 15. I'm not talking only about the credit card of separating the annuity what I'm saying is that we have other lines that are also coming with equivalence and effective.

Marcelo de Araújo Noronha: What I'm saying is that we have other lines that are also coming with equivalent and effective, we do believe in our capacity to grow. Over here in capital markets, we have been growing well. It decreases year over year because we had a very good Q2 last year and all the adjustments we did in the investment bank, and we ranked first in local origination, first in M&A. The evaluation was negative due to natural reasons, because you have a higher baseline in that Q2. In our different lines, what we've been doing is BRL 1 billion more in revenue in 12 months when compared to 2023, and we've been doing that with resilience. Forward, other revenue lines that we have. We have insurance, pension plans, and savings bonds. Another robust quarter, the growth by 28.3% in net income, reaching BRL 2.9 billion.

Marcelo Noronha: What I'm saying is that we have other lines that are also coming with equivalent and effective, we do believe in our capacity to grow. Over here in capital markets, we have been growing well. It decreases year over year because we had a very good Q2 last year and all the adjustments we did in the investment bank, and we ranked first in local origination, first in M&A. The evaluation was negative due to natural reasons, because you have a higher baseline in that Q2. In our different lines, what we've been doing is BRL 1 billion more in revenue in 12 months when compared to 2023, and we've been doing that with resilience. Forward, other revenue lines that we have. We have insurance, pension plans, and savings bonds. Another robust quarter, the growth by 28.3% in net income, reaching BRL 2.9 billion.

Speaker #2: So we do believe in our capacity to grow. Over here in capital markets, we have been growing well. It decreases year over year. Because we had a very good second quarter last year and all the adjustments we did in the investment bank and we reached here we ranked first in local origination, first in M&A.

Speaker #2: But the evaluation was negative due to natural reasons because you have a higher baseline and that second quarter. But in our different lines, what we've been doing is 1 billion more in revenue in 12 months when compared to 2023.

Speaker #2: And we've been doing that with resilience. Forward other revenue lines that we have we have insurance, pension plans, and savings bonds. Another robust quarter growth by 28.3% in net income reaching 2.9 billion.

Marcelo de Araújo Noronha: We are growing based on a baseline, which is high, reaching these levels that you can see here. When we look at the results of the insurance operations, we see that the total income had an increase of 8.3% year-on-year, 14% in the H1. In the quarter, the operating result, the industrial result, as they call, grows more than the financial one, and in the H1, the same. The traction is good, and let me give you an example that in the press conference, they mentioned this topic and I emphasized it. In the new platform that we have for autos, for vehicles, what happens? We sell with a totally different experience for the clients during sale, and then clients can either choose if they want the insurance for vehicles or not.

Speaker #2: So we are growing and based on a baseline which is high reaching these levels that you can see here. And when we look at the results of the insurance operations, we see that the total income had an increase of 8.3 year on year 14% in the semester.

Marcelo Noronha: We are growing based on a baseline, which is high, reaching these levels that you can see here. When we look at the results of the insurance operations, we see that the total income had an increase of 8.3% year-on-year, 14% in the H1. In the quarter, the operating result, the industrial result, as they call, grows more than the financial one, and in the H1, the same. The traction is good, and let me give you an example that in the press conference, they mentioned this topic and I emphasized it. In the new platform that we have for autos, for vehicles, what happens? We sell with a totally different experience for the clients during sale, and then clients can either choose if they want the insurance for vehicles or not.

Speaker #2: In the half, but in the quarter, the operating result, the industrial result, as they call, grows more than the financial one. And in the first half, the same.

Speaker #2: So the traction is good. And let me give you an example. That in the press conference they mentioned this topic and I emphasize it.

Speaker #2: In the new platform that we have for autos, for vehicles, what happened? We sell with a totally different experience for the clients during the sale, and then clients can choose whether they want the insurance for vehicles or not.

Speaker #2: So what happened is that we did the whole production that we did in these two lines through BRADESCO FINANCIAMENTOS in our network in 2025.

Marcelo de Araújo Noronha: What happened is that we did the whole production that we did in these two lines through Bradesco Financiamentos in our network in 2025. We grew almost by 100% in the production of these two types of insurance. The ROAE, the quarterly ROAE, almost 22.8%, and the technical provisions almost 10%, BRL 467 billion provisions in the largest insurance group in Latin America. Operating expenses, year-on-year growth by 3.4%. We continue reviewing our footprint and investing in our transformation. We have not stopped doing anything here. It is gain in efficiency. If you look at the full earnings release, you will find lines, like installations with negative variation, and obviously, that does influence our efficiency ratio. Obviously, a growth of 3.4% is below inflation. Capital, I will be available for you to ask me about the increase that was approved by the board.

Marcelo Noronha: What happened is that we did the whole production that we did in these two lines through Bradesco Financiamentos in our network in 2025. We grew almost by 100% in the production of these two types of insurance. The ROAE, the quarterly ROAE, almost 22.8%, and the technical provisions almost 10%, BRL 467 billion provisions in the largest insurance group in Latin America. Operating expenses, year-on-year growth by 3.4%. We continue reviewing our footprint and investing in our transformation. We have not stopped doing anything here. It is gain in efficiency. If you look at the full earnings release, you will find lines, like installations with negative variation, and obviously, that does influence our efficiency ratio. Obviously, a growth of 3.4% is below inflation. Capital, I will be available for you to ask me about the increase that was approved by the board.

Speaker #2: So we grew almost by 100% in the production of these two types of insurance. The ROAE, the quarterly ROAE almost 22.8% and the technical provisions almost 10% per 167 billion provisions in the largest insurance group in Latin America.

Speaker #2: Operating expenses year on year growth by 3.4%. We continue reviewing our footprints and investing in our transformation. We haven't stopped doing anything here. It's gain in efficiency.

Speaker #2: If you look at the full earnings release, you will find lines just like installations with negative variation. And obviously that does influence our efficiency ratio.

Speaker #2: Obviously a growth of 3.4 is below inflation. Capital and I'm quite I'll be available for you to ask me about the increase that was approved by the board and we went from this common equity from 0.9 and we are at 12.2%.

Marcelo de Araújo Noronha: We went from this common equity from 0.9%, and we are at 12.2%. This difference of Bradesco Saúde in the next period, this is our expectation, that can come to 13.6% and 15.1% in Tier 1 capital. These have a lot of deliverables done in our transformation, and I would like to call your attention to Bradesco Principal, that we will have almost 800,000, and we have delivered that. Bradesco Prime has almost 4.3 million clients. Bradesco fully digital, 36 million in the middle of the year. We are going over 40 million. I will mention that later on. We are delivering a lot of new things for our clients, individuals, and corporate, with the issuance of NSE. Gaining in productivity, delivering more and more intensive use of AI in our organization and of other technologies too. I will talk about that later on.

Marcelo Noronha: We went from this common equity from 0.9%, and we are at 12.2%. This difference of Bradesco Saúde in the next period, this is our expectation, that can come to 13.6% and 15.1% in Tier 1 capital. These have a lot of deliverables done in our transformation, and I would like to call your attention to Bradesco Principal, that we will have almost 800,000, and we have delivered that. Bradesco Prime has almost 4.3 million clients. Bradesco fully digital, 36 million in the middle of the year. We are going over 40 million. I will mention that later on. We are delivering a lot of new things for our clients, individuals, and corporate, with the issuance of NSE. Gaining in productivity, delivering more and more intensive use of AI in our organization and of other technologies too. I will talk about that later on.

Speaker #2: And to add, this difference of Bradesco and Saudi in the next period—this is our expectation—it can come to 13.6% and 15.1% in Tier 1 capital.

Speaker #2: These have a lot of deliverables done in our transformation and I'd like to call your attention to principle that will we will have almost 800,000 and we have delivered that.

Speaker #2: Prime has almost 4.3 million clients and BRADESCO fully digital 36 million in the middle of the year. We're going over 40 million. I will mention that later on.

Speaker #2: And we are delivering a lot of new things for our clients individuals and corporate with issuance of NFE, gaining in productivity, delivering more and more intensive use of AI in our organization and of other technologies too.

Speaker #2: I will talk about that later on. While we have two screens to end and summarize all of this, we have a consistent net income growth step by step.

Marcelo de Araújo Noronha: Well, we have two screens to end and summarize all of this. We have a consistent net income growth step by step. We continue with that, with a lot of resilience and obviously, with great belief in everything that we have been doing. Look at this, the operating result, which is in the full earnings release, we are growing over 14% in the operating results with revenues growing double digits. We are a conglomerate, and this revenue diversification we have, not only in the banking activity, but in the payments and in the subsidiaries like consortium and in the insurance group. We do have a very huge diversification, which gives us resilience. The transformation plan is very clear and is generating greater competitiveness across business lines, both in terms of efficiency and expenses and revenues. Portfolio is growing safely with more guarantees and a good risk-adjusted return.

Marcelo Noronha: Well, we have two screens to end and summarize all of this. We have a consistent net income growth step by step. We continue with that, with a lot of resilience and obviously, with great belief in everything that we have been doing. Look at this, the operating result, which is in the full earnings release, we are growing over 14% in the operating results with revenues growing double digits. We are a conglomerate, and this revenue diversification we have, not only in the banking activity, but in the payments and in the subsidiaries like consortium and in the insurance group. We do have a very huge diversification, which gives us resilience. The transformation plan is very clear and is generating greater competitiveness across business lines, both in terms of efficiency and expenses and revenues. Portfolio is growing safely with more guarantees and a good risk-adjusted return.

Speaker #2: We continue with that. With a lot of resilience and obviously with great belief in everything that we've been doing. But look at this. The operating result, which is in the full earnings release, we're growing over 14% in the operating result with revenues growing double digits.

Speaker #2: We are a conglomerate and this revenue diversification we have not only in the banking activity but in the payments and in the subsidiaries like consortium and in the insurance group.

Speaker #2: So we do have a very huge diversification which gives us resilience. The transformation plan is very clear and is generating greater competitiveness across business lines.

Speaker #2: Both in terms of efficiency and expenses and revenues. Portfolio is growing safely with more guarantees and a good risk adjusted return. This is our bible here.

Marcelo de Araújo Noronha: This is our Bible here. I also mentioned this, we ranked first in fixed income M&As during this period, vehicle financing, and in government-backed lines, FGI, FGO, in consortiums, and the insurance group, the largest of Latin America. That's not the end objective. Our objective is an optimum point of the risk-adjusted return, obviously with scale absolute revenue, to take decisions in our positions safely. We have strengthened our balance sheet to unleash the value of Bradesco Saúde, and we're continued focused so that the tangible capital of our organization is greater and greater. That's the objective. All of that with pragmatism. We were awarded many prizes. If you would like to know more about that, have a look at it.

Marcelo Noronha: This is our Bible here. I also mentioned this, we ranked first in fixed income M&As during this period, vehicle financing, and in government-backed lines, FGI, FGO, in consortiums, and the insurance group, the largest of Latin America. That's not the end objective. Our objective is an optimum point of the risk-adjusted return, obviously with scale absolute revenue, to take decisions in our positions safely. We have strengthened our balance sheet to unleash the value of Bradesco Saúde, and we're continued focused so that the tangible capital of our organization is greater and greater. That's the objective. All of that with pragmatism. We were awarded many prizes. If you would like to know more about that, have a look at it.

Speaker #2: And I also mentioned this: we ranked first in fixed income M&A during this peer period. Vehicle financing and in government-backed lines (FGO, FGI), in consortiums, and the insurance group—the largest in Latin America.

Speaker #2: And that's not the end objective. Our objective is an optimum point of the risk adjusted return obviously with scale absolute revenue to take decisions in our positions strengthened our balance sheet to unleash the value of BRAD Saudi.

Speaker #2: And we're continue focused so that the tangible capital of our organization is greater and greater. That's the objective. And all of that in with pragmatism.

Speaker #2: We were awarded many prizes. If you would like to know more about that, have a look at it. And I would like to conclude with this platform that we launched here in the bank called MEU BRADESCO.

Marcelo de Araújo Noronha: I would like to conclude with this platform that we launched here in the bank called Meu Bradesco, and it has an important meaning. Why is it called Meu Bradesco, My Bradesco? I'm talking about hyper-personalization. It's yours. It belongs to our clients. You come first. He is Meu Bradesco. They are already hyper-personalized, but it will grow more and more. This hyper-personalization with all the innovation that we've been working on with AI, with the new experiences for clients. Our Bia celebrates 10 years now with a birthday cake with Renato and his team, and everyone who works with Bia, and everyone has a birthday cake for Bia, pioneer here in Brazil. Today, Bia is Bia Gen AI and serves all our clients. She's available to 100% of clients with access.

Marcelo Noronha: I would like to conclude with this platform that we launched here in the bank called Meu Bradesco, and it has an important meaning. Why is it called Meu Bradesco, My Bradesco? I'm talking about hyper-personalization. It's yours. It belongs to our clients. You come first. He is Meu Bradesco. They are already hyper-personalized, but it will grow more and more. This hyper-personalization with all the innovation that we've been working on with AI, with the new experiences for clients. Our Bia celebrates 10 years now with a birthday cake with Renato and his team, and everyone who works with Bia, and everyone has a birthday cake for Bia, pioneer here in Brazil. Today, Bia is Bia Gen AI and serves all our clients. She's available to 100% of clients with access.

Speaker #2: And it has an important meaning and why is it called MEU BRADESCO? My BRADESCO. I'm talking about hyper personalization. It's yours. It belongs to our clients.

Speaker #2: You come first. So he is MEU BRADESCO. They are already hyper personalized but it will grow more and more and this hyper personalization with all the innovation that we've been working on with AI, with the new experiences for clients.

Speaker #2: But our BIA celebrates 10 years now with a birthday cake with an apple and his team. And everyone who works with BIA and everyone is has a birthday cake for BIA pioneer here in Brazil.

Speaker #2: And today BIA is BIA Gen AI. And serves all our clients. She's available to 100% of clients with access. With this level of accuracy, we had 74 million interactions.

Marcelo de Araújo Noronha: With this level of accuracy, we had 74 million interactions, and it is transactional and also conversational. You can do your Pix through Bia and other transactions too. As you will see throughout this semester, other new experiences More technological, but never less humane. This is our topic. This is the connection behind our managers, that is connecting the digital channels with our clients, and also connecting the strength in sales with our clients. We will see the launching of our market throughout the day today in social networks and in other media. Okay? With Meu Bradesco, my Bradesco. Thank you so much for your patience. I know I took longer to explain, but now we're going to the Q&A, and I'm here live with my friend, André Carvalho, IR, and Cassiano Scarpelli, CFO and CTO, to answer the questions that you have here.

Marcelo Noronha: With this level of accuracy, we had 74 million interactions, and it is transactional and also conversational. You can do your Pix through Bia and other transactions too. As you will see throughout this semester, other new experiences More technological, but never less humane. This is our topic. This is the connection behind our managers, that is connecting the digital channels with our clients, and also connecting the strength in sales with our clients. We will see the launching of our market throughout the day today in social networks and in other media. Okay? With Meu Bradesco, my Bradesco. Thank you so much for your patience. I know I took longer to explain, but now we're going to the Q&A, and I'm here live with my friend, André Carvalho, IR, and Cassiano Scarpelli, CFO and CTO, to answer the questions that you have here.

Speaker #2: And it is transactional. And also conversational. You can do your picks through BIA and other transactions too. And as you will see throughout this semester, other new experiences more technological but never less humane.

Speaker #2: This is our topic. This is the connection behind our managers and that is connecting the digital channels with our clients and also connecting the strength in sales with our clients.

Speaker #2: So we will see the launching of our market throughout the day today. In social networks and in other media okay. With MEU BRADESCO my BRADESCO.

Speaker #2: So thank you so much for your patience. I know I took longer to explain but now we're going to the Q&A. And I'm here live with my friends Andrea Carvalho IR and Cassiano Scarpelli CFO and CTO to answer the questions that you have here.

Speaker #2: Thank you so much. Thanks for participating.

Marcelo de Araújo Noronha: Thank you so much. Thanks for participating.

Marcelo Noronha: Thank you so much. Thanks for participating.

Speaker #1: Thank you, Marcelo and Cassiano. Good morning to you all. I would like to remind you that Ney Diaz, the CEO of Bradesco Seguros, and Carlos Marinelli from Bradesco Saúde are also joining us remotely.

André Carvalho: Thank you, Marcelo and Cassiano. Good morning to you all. I would like to remind you that Ney Dias, the CEO, Bradesco Seguros, and Carlos Marinelli from Bradesco Saúde, they are also joining us remotely. If you want to send your questions, your questions can be submitted in Portuguese or English. Just use the email investidores@bradesco.com.br, or WhatsApp 11-7443-8238, or just point your camera to the QR code on the screen. Andre, if you allow. Sometimes we forget to say a few things. I would just like to go back for 1 second, if you give me that chance. I would just like to go back to our presentation because I talked about the SME portfolio. I just want to mention one small thing. When we talk about SMEs, I think this slide. Keep that number in mind, BRL 37 billion. 10 seconds. Here.

André Carvalho: Thank you, Marcelo and Cassiano. Good morning to you all. I would like to remind you that Ney Dias, the CEO, Bradesco Seguros, and Carlos Marinelli from Bradesco Saúde, they are also joining us remotely. If you want to send your questions, your questions can be submitted in Portuguese or English. Just use the email investidores@bradesco.com.br, or WhatsApp 11-7443-8238, or just point your camera to the QR code on the screen.

Speaker #1: If you want to send your questions your questions can be submitted in Portuguese or English. Just use the email investidores@bradesco.com.br or WhatsApp 11 7443 8238 or just point your camera to the QR code on the screen.

Marcelo Noronha: Andre, if you allow. Sometimes we forget to say a few things. I would just like to go back for 1 second, if you give me that chance. I would just like to go back to our presentation because I talked about the SME portfolio. I just want to mention one small thing. When we talk about SMEs, I think this slide. Keep that number in mind, BRL 37 billion. 10 seconds. Here.

Speaker #1: Andrea if you allow. Times we forget to say a few things. I would just like to go back for one sec if you give me that chance.

Speaker #1: I would just like to go back to our presentation because I talk about the SME portfolio I just want to mention one small thing.

Speaker #1: When we talk about SMEs I think this slide keep that number in mind 37 billion 10 seconds here I said that our FGI and FGO grew 64.5% you know how much that grew from 37 31 billion came from here year on year but what about the rest of the other 6 billion well it came mostly from leasing direct credit to consumer so we finance aircraft you know jets and and big boats on the wealth management side and the entrepreneur plan so this is where our portfolio is so SME growth I mean it grew mostly based on secured lines secured credit I just remember that when I said that so I do apologize for that for that interruption so I just didn't want to leave that information behind so first question from Mario Piagi with Bank of America so Mario you have the floor good morning and congrats on your results thank you for taking my question not only I would like to focus on that capital slide you you show that your common equity tier one is 11% you still have 140 basis points to recognize from the BRAD Saúde transaction I just want to understand why there is this delay in terms of acknowledging that 140 and what else is missing for you to be able to recognize that with that you will reach 12.7% you know tier one and you just announced 10 billion BRLs of capital increase and this will take another 90 basis points of capital so you will get to 13.6% I think you've heard some investors being very skeptical about that why do you need to have so much capital now I think the best thing would be for investors to hear straight from you why in your opinion you think that the bank would need such a high level of common equity at this point well Mario thank you so much for joining us it's a pleasure to talk to you and thank you for the for the question and the opportunity to talk to investors and all of you analysts about this topic first of all let me expand this view we do believe that strong capital is always very healthy for a banking organization and we should look at a benchmark because when we talk to the board and we talked about that with the board even you know drew our attention to that point I mean we look at JP Morgan JP Morgan has about 15% of common equity if I am not mistaken so having a strong common equity is a positive thing we were questioned about that we we had a very strict capital discipline because when we provide more collateralized credit you can allocate your capital body better I mean the risk adjusted return so we already recognized part of the capital from BRAD Saúde and that difference has to do with the process I mean P&L delivery because there is a timing and that was something very recent so we are just waiting for the green light from the regulators the other issue related to capital increase that was a decision from shareholders controlling shareholders that are very you know capitalized they they look at the bank they looked at our organization as a whole with returns above the cost of capital I mean you you have that cash invested at the ongoing interest rate and they saw an opportunity not only to buy shares because they believed that this could straighten the franchise this is just a testimony of confidence in the company they trust the company they trust the administration and everything else the management is doing throughout its transformation plan that's why we decided to anchor at least 8 billion out of the 10 billion so having common equity above 13 it's not a sin I mean with all due respect to other organizations that follow different policies but we certainly have to look at you know your current moment we are going through a very strong transformation phase we see the possibility of giving you know bigger steps in this delivery process so maybe in the future things might be different but right now this is what gives us resilience and it shows that the controlling shareholders really trust you know this management and this company thank you for your question I think Cassiano has something to it I mean we've been talking a lot to the market and we are talking about tangible capital I think we have to bear in mind the concept of tangible capital these 10 billion they are straight straightly related to tangible capital and also opens other possibilities it's a much more robust bank we can work better with our own working capital tangible capital this gives us more comfort to work with other macroeconomic scenarios and we can also leverage our business therefore we bring additional comfort to the bank with this trust from controlling shareholders because they they were up to come up with up to 8 billion BRLs you can only do that in the financial world and.

Marcelo de Araújo Noronha: I said that our FGI and FGO grew 64.5%. You know how much that grew from BRL 37 billion? BRL 31 billion came from here year-on-year. What about the rest, the other BRL 6 billion? Well, it came mostly from leasing, direct credit to consumer. We finance aircraft, jets, and big boats on the wealth management side, and the Plano Empresário. This is where our portfolio is. SME growth, it grew mostly based on secured loans, secured credit. I just remember that when I said that. I do apologize for that interruption. I just didn't want to leave that information behind. First question from Mario Pierry with Bank of America. Mario, you have the floor. Good morning and congrats on your results. Thank you for taking my question. Noronha, I would like to focus on that capital slide.

Marcelo Noronha: I said that our FGI and FGO grew 64.5%. You know how much that grew from BRL 37 billion? BRL 31 billion came from here year-on-year. What about the rest, the other BRL 6 billion? Well, it came mostly from leasing, direct credit to consumer. We finance aircraft, jets, and big boats on the wealth management side, and the Plano Empresário. This is where our portfolio is. SME growth, it grew mostly based on secured loans, secured credit. I just remember that when I said that. I do apologize for that interruption. I just didn't want to leave that information behind.

André Carvalho: First question from Mario Pierry with Bank of America. Mario, you have the floor.

Mario Pierry: Good morning and congrats on your results. Thank you for taking my question. Noronha, I would like to focus on that capital slide. You show that your Common Equity Tier 1 is 11%. You still have 140 basis points to recognize from the Bradesco Saúde transaction. I just want to understand why there is this delay in terms of acknowledging that 140 basis points and what else is missing for you to be able to recognize that. With that, you will reach 12.7% Tier 1, and you just announced BRL 10 billion of capital increase, and this will take another 90 basis points of capital. You will get to 13.6%. I think you've heard some investors being very skeptical about that.

Mario Pierry: You show that your Common Equity Tier 1 is 11%. You still have 140 basis points to recognize from the Bradesco Saúde transaction. I just want to understand why there is this delay in terms of acknowledging that 140 basis points and what else is missing for you to be able to recognize that. With that, you will reach 12.7% Tier 1, and you just announced BRL 10 billion of capital increase, and this will take another 90 basis points of capital. You will get to 13.6%. I think you've heard some investors being very skeptical about that. Why do you need to have so much capital now?

Mario Pierry: Why do you need to have so much capital now? I think the best thing would be for investors to hear straight from you why, in your opinion, you think that the bank would need such a high level of common equity at this point.

Marcelo de Araújo Noronha: I think the best thing would be for investors to hear straight from you why, in your opinion, you think that the bank would need such a high level of common equity at this point. Well, Mario, thank you so much for joining us. It's a pleasure to talk to you, and thank you for the question and the opportunity to talk to investors and all of you analysts about this topic. Well, first of all, let me expand this view. We do believe that strong capital is always very healthy for a banking organization. We should look at a benchmark because when we talk to the board, and we talked about that with the board, Trabuco even drew our attention to that point. We look at JP Morgan. JP Morgan has about 15% of common equity, if I am not mistaken.

Marcelo Noronha: Well, Mario, thank you so much for joining us. It's a pleasure to talk to you, and thank you for the question and the opportunity to talk to investors and all of you analysts about this topic. Well, first of all, let me expand this view. We do believe that strong capital is always very healthy for a banking organization. We should look at a benchmark because when we talk to the board, and we talked about that with the board, Trabuco even drew our attention to that point. We look at JP Morgan. JP Morgan has about 15% of common equity, if I am not mistaken. Having a strong common equity is a positive thing. We were questioned about that. We had a very strict capital discipline because when we provide more collateralized credit, you can allocate your capital better, I mean, the risk-adjusted return.

Marcelo de Araújo Noronha: Having a strong common equity is a positive thing. We were questioned about that. We had a very strict capital discipline because when we provide more collateralized credit, you can allocate your capital better, I mean, the risk-adjusted return.

Marcelo de Araújo Noronha: We already recognized part of the capital from Bradesco Saúde. That difference has to do with the process. P&L delivery, because there is a timing, and that was something very recent. We are just waiting for the green light from the regulators. The other issue related to capital increase, that was a decision from shareholders, controlling shareholders that are very capitalized. They look at the bank, they looked at our organization as a whole. With returns above the cost of capital, you have that cash invested at the ongoing interest rate. They saw an opportunity not only to buy shares, because they believed that this could strengthen the franchise. This is just a testimony of confidence in the company. They trust the company, they trust the administration, and everything else the management is doing throughout its transformation plan.

Marcelo Noronha: We already recognized part of the capital from Bradesco Saúde. That difference has to do with the process. P&L delivery, because there is a timing, and that was something very recent. We are just waiting for the green light from the regulators. The other issue related to capital increase, that was a decision from shareholders, controlling shareholders that are very capitalized. They look at the bank, they looked at our organization as a whole. With returns above the cost of capital, you have that cash invested at the ongoing interest rate. They saw an opportunity not only to buy shares, because they believed that this could strengthen the franchise. This is just a testimony of confidence in the company. They trust the company, they trust the administration, and everything else the management is doing throughout its transformation plan.

André Carvalho: That's why we decided to anchor at least BRL 8 billion out of the BRL 10 billion. Having common equity above 13, it's not a sin. With all due respect to other organizations that follow different policies. We certainly have to look at your current moment. We are going through a very strong transformation phase. We see the possibility of giving bigger steps in this delivery process. Maybe in the future, things might be different. Right now, this is what gives us resilience, and it shows that the controlling shareholders really trust this management and this company. Thank you for your question. I think Cassiano has something to it. We've been talking a lot to the market, and we are talking about tangible capital. I think we have to bear in mind the concept of tangible capital.

André Carvalho: That's why we decided to anchor at least BRL 8 billion out of the BRL 10 billion. Having common equity above 13, it's not a sin. With all due respect to other organizations that follow different policies. We certainly have to look at your current moment. We are going through a very strong transformation phase. We see the possibility of giving bigger steps in this delivery process. Maybe in the future, things might be different. Right now, this is what gives us resilience, and it shows that the controlling shareholders really trust this management and this company. Thank you for your question. I think Cassiano has something to it.

Cassiano Scarpelli: We've been talking a lot to the market, and we are talking about tangible capital. I think we have to bear in mind the concept of tangible capital.

Cassiano Scarpelli: These BRL 10 billion, they are straightly related to tangible capital and also opens other possibilities as a much more robust bank. We can work better with our own working capital, tangible capital. This gives us more comfort to work with other macroeconomic scenarios, and we can also leverage our business. Therefore, we bring additional comfort to the bank with this trust from controlling shareholders because they were up to come up with up to BRL 8 billion. You can only do that in the financial world, and we can do that through capital raise. We decided to anticipate IOC so that shareholders could strike a financial balance close to what is being suggested in terms of capital raise. We are comfortable with this level of common equity because then we can control our tangible capital versus DTA and versus the consumption of that.

Cassiano Scarpelli: These BRL 10 billion, they are straightly related to tangible capital and also opens other possibilities as a much more robust bank. We can work better with our own working capital, tangible capital. This gives us more comfort to work with other macroeconomic scenarios, and we can also leverage our business. Therefore, we bring additional comfort to the bank with this trust from controlling shareholders because they were up to come up with up to BRL 8 billion. You can only do that in the financial world, and we can do that through capital raise. We decided to anticipate IOC so that shareholders could strike a financial balance close to what is being suggested in terms of capital raise. We are comfortable with this level of common equity because then we can control our tangible capital versus DTA and versus the consumption of that.

Speaker #1: We can do that through capital raise we decided to anticipate IOC so that shareholders could strike a financial balance close to what is being suggested in terms of capital rates so so we are comfortable with this level of common equity because then we can control our tangible capital versus DTA and versus the consumption of that therefore I think that this is this is what embodies this capital increase I mean your question is important Cassiano highlighted and I mentioned that during my presentation I mean tangible capital we look at it with a magnifying lens we look at that all the time we monitor at you know constantly we look at tax credit we also discussed that with our board members what the executive board says that the reason why we release that before the result instead of you know releasing it today is for a very simple reason on the 29th we had a board meeting you know the ordinary meeting when we took that subject for approval because we have to disclose it to the market because on the 31st we also had the payment of another IOC and there are some shareholders that have been with us for a long time I mean individuals companies family holding organizations and we also have institutional investors and many of them I mean they talk to us all the time they they they approach our IR and they also invest in other portfolios if we had paid and if we had disclosed it today or at least today they could have been telling us that if I am a long-term investor probably I would have to come up with some money to to help raising you know increasing capital so we we're concerned about these shareholders so thank you Marcelo thank thank you Mario we have a stronger P&L better outlook in our revenue with better tangible capital next question from Navajo with Santander Bank thank you thank you all thank you for the chance of asking questions my question in fact it's a request I want to hear Noronha and Bradesco to tell me more about your experience because maybe we can you can help me shed a light of what could happen to the credit landscape this year and next year there is an ongoing debate saying that this challenging credit scenario is not a cyclical one but rather structural meaning that it will remain challenging until the end of 2026 and also into 2027 in the case of Bradesco naturally we know that the bank has a a more segmented you know profile I mean individuals individuals income it's slightly lower so how do you see Bradesco in this current scenario that structurally could be even more challenging meaning I mean as analysts should we start thinking about slightly higher cost of risk I mean getting into 2027 should we think about a a lower growth of the portfolio or maybe I'll start thinking about reducing it lower and this would decrease my possibility of doing cross selling and the portfolio would decrease I mean the the fee income of banking services.

Marcelo de Araújo Noronha: I think that this is what embodies this capital increase. Your question is important, and Cassiano highlighted, and I mentioned that during my presentation, tangible capital, we look at it with a magnifying lens. We look at that all the time. We monitor it constantly. We look at tax credit. We also discuss that with our board members. What the executive board asked the board says that the reason why we released that before the result instead of releasing it today, is for a very simple reason. On the 29th, we had a board meeting, the ordinary meeting when we took that subject for approval because we have to disclose it to the market.

Cassiano Scarpelli: I think that this is what embodies this capital increase.

Marcelo Noronha: Your question is important, and Cassiano highlighted, and I mentioned that during my presentation, tangible capital, we look at it with a magnifying lens. We look at that all the time. We monitor it constantly. We look at tax credit. We also discuss that with our board members. What the executive board asked the board says that the reason why we released that before the result instead of releasing it today, is for a very simple reason. On the 29th, we had a board meeting, the ordinary meeting when we took that subject for approval because we have to disclose it to the market.

Marcelo de Araújo Noronha: On the 31st, we also had the payment of another IOC, and there are some shareholders that have been with us for a long time, individuals, companies, family holding organizations, and we also have institutional investors. Many of them, they talk to us all the time. They approach our IR, and they also invest in other portfolios. If we had paid and if we had disclosed it today or released it today, they could have been telling us that, if I am a long-term investor, probably I would have to come up with some money to help increasing capital. We were concerned about these shareholders. Thank you, Marcelo. Thank you, Mario. We have a stronger P&L, better outlook in our revenue with better tangible capital. Next question from Navarro with Santander Bank. Thank you. Thank you all. Thank you for the chance of asking questions.

Marcelo Noronha: On the 31st, we also had the payment of another IOC, and there are some shareholders that have been with us for a long time, individuals, companies, family holding organizations, and we also have institutional investors. Many of them, they talk to us all the time. They approach our IR, and they also invest in other portfolios. If we had paid and if we had disclosed it today or released it today, they could have been telling us that, if I am a long-term investor, probably I would have to come up with some money to help increasing capital. We were concerned about these shareholders.

Mario Pierry: Thank you, Marcelo.

André Carvalho: Thank you, Mario. We have a stronger P&L, better outlook in our revenue with better tangible capital. Next question from Navarro with Santander Bank.

[Analyst] (Santander Bank): Thank you. Thank you all. Thank you for the chance of asking questions.

[Analyst] (Santander Bank): My question, in fact, it's a request. I want to hear Noronha and Bradesco to tell me more about your experience, because maybe you can help me shed a light on what could happen to the credit landscape this year and next year. There is an ongoing debate saying that this challenging credit scenario is not a cyclical one, but rather structural, meaning that it will remain challenging until the end of 2026 and also into 2027. In the case of Bradesco, naturally, we know that the bank has a more segmented profile. Individuals' income is slightly lower. How do you see Bradesco in this current scenario that structurally could be even more challenging? Meaning, as analysts, should we start thinking about slightly higher cost of risk? Getting into 2027, should we think about a lower growth of the portfolio?

[Analyst] (Santander Bank): My question, in fact, it's a request. I want to hear Noronha and Bradesco to tell me more about your experience, because maybe you can help me shed a light on what could happen to the credit landscape this year and next year. There is an ongoing debate saying that this challenging credit scenario is not a cyclical one, but rather structural, meaning that it will remain challenging until the end of 2026 and also into 2027. In the case of Bradesco, naturally, we know that the bank has a more segmented profile. Individuals' income is slightly lower. How do you see Bradesco in this current scenario that structurally could be even more challenging? Meaning, as analysts, should we start thinking about slightly higher cost of risk? Getting into 2027, should we think about a lower growth of the portfolio?

Marcelo de Araújo Noronha: Maybe I'll start thinking about reducing it lower, this would decrease my possibility of doing cross-selling, the portfolio would decrease. The fee income of banking services will be down as well. Help me understand what we should expect going forward, or whether we should start making adjustments for the numbers for 2027. Well, Navarro, thank you for joining us. It's always a pleasure to talk to you.

Marcelo Noronha: Maybe I'll start thinking about reducing it lower, this would decrease my possibility of doing cross-selling, the portfolio would decrease. The fee income of banking services will be down as well. Help me understand what we should expect going forward, or whether we should start making adjustments for the numbers for 2027. Well, Navarro, thank you for joining us. It's always a pleasure to talk to you.

Speaker #1: Will be down as well so help me understand what we should expect going forward or whether we should start making adjustments for the numbers for 2027 so Navajo thank you for joining us it's always a pleasure to talk to you I will mention a few factors I think that the average market or household income commitment is such and with the ongoing interest rates I mean yesterday there was a drop in the Selic rate from 14.25 to 14% and by looking at the inflation indicators if you look at IPC numbers I can say to you that the landscape is a lot more challenging when you when you look at the Brazilian credit scenario if the EBITDA of companies is lower it is therefore pressured by this interest rate because if the duration was short the effect could have been different but this is a fact this is a reality but if you allow me I'll say to you that when you look at SMEs at Bradesco the way you look at it it's not the correct way to look at it that's why you know I I broke all the I mean I opened all the numbers our SME growth year over year was 37 billion 31 billion out of that came from FGO and FGI within that stop loss so the the level of loss is minimal that's one thing where does the rest come from the that we do middle market corporate and companies with good I mean developers the level of formality is different so I'll say to you that our appetite for you know lower income clients is much lower when compared to the past so when you look at at the portfolio mix let me give you one piece of information you know the clean individual you know personal loan portfolio in all segments back in 2023 it accounted for slightly above 15% of our individuals loan portfolio today it accounts for approximately 12 but how come 12 well first of all we have personal loans even in the private segment the rating is totally different the structure is different it's not for all therefore we have a this is just one example I'm giving you the mix is totally different the FGI FGO total portfolio is close to 80 billion and with a very robust growth we are well traction and it's a very resilient portfolio but then what happens when you look at NPL over 90 and cost of risk cost of risk increases when you are growing with FGO and FGI due to that guarantee claim period as I said it goes from 120 until 185 days so you call for provisions of that client that went through the grace period and our pickup production that went from March of last year to October of last year and then we were number one in origination therefore we have maturities there and this puts pressure on the cost of risk what else could put pressure on the cost of risk rural or agribusiness through consolidation consolidation of the John Deere Bank if I grow the portfolio which is the third variable I also put pressure in the cost of risk at a certain measure but I look at top line and risk adjusted return I put the return that is due to that credit showing traction a lot of people ask me first time I came here said if you lose clients you won't be able to to have any traction but we are showing a lot of traction with payroll loans SMEs our SME it's collateralized it's secured we are not granting credit in that intermediary you know line we are well collateralized much more than in the past the corporate portfolio was up by 70 billion from the whole field bank as well with you know secured lines good ratings and the 37 billion as I said from SMEs therefore I see that we will continue to grow going moving towards the guidance because our wholesale portfolio fluctuates because most of what we do in terms of securities goes to origination for distribution so we distribute it in the secondary market so there are moments that we are up and moments when we are down but we grow in other lines as I said we also finance aircraft in our portfolio was up by 1.5 billion in this period there was a a large corporate client and from other segments from the wholesale bank so I'll tell you now that the market has its own risk we also look at another indicator that was NPL over 90 for private payroll loan without Bradesco 8.9% versus 4.5% since we started doing that in a moderate way until we had all of the data prep you know model well in place because we have to to do that fine tuning therefore we are very careful in terms of managing our portfolio but it's obvious that when we grow the portfolio and this thing about FGO and FGI and the the agribusiness line and John Deere consolidation will bring cost of risk to a slightly higher level but we are operating with no additional stresses in my view for you know the year 2026 thank you thank you if you want to think forward look at a guidance we work from the center of the guidance upwards next question from Thiago Batista UBS hello everyone good morning my question is about return the ROI achieved 16% you can discuss the cost of capital in Brazil it's around 15 16 so we can say that Bradesco or your management delivered ROI that was good and in the future the next steps could we believe that the ROI continues to grow step by step and where do you see the levers for this additional growth just a follow up on in terms of capital after the capitalization but this will pay more and only that or will it be capitalized more recurrent what will be the policy of distribution after this capitalization let me start by the end thank you Thiago for your participation and for being here with us and an opportunity to talk to you in relation to the capitalization we will pay the most we can yes of IOE this was this had to do with our controller decision and in this moment we don't have any other plan of any plan that is on the desk on the table for the future we have to look at the dynamics looking forward in relation to the ROE our cost of capital is below 15 today I would say that after yesterday it's coming close to 14 points five with a no silic rate and yes I do see an ROE that continues to grow obviously.

Marcelo de Araújo Noronha: I will mention a few factors. I think that the average market or household income commitment is such, and with the ongoing interest rates. I mean, yesterday, there was a drop in the Selic rate from 14.25% to 14%. By looking at the inflation indicators, if you look at IPCA numbers, I can say to you that the landscape is a lot more challenging when you look at the Brazilian credit scenario. If the EBITDA of companies is lower, it is therefore pressured by this interest rate. Because if the duration was short, the effect could have been different. This is a fact, this is a reality. If you allow me, I'll say to you that when you look at SMEs at Bradesco, the way you look at it's not the correct way to look at it. That's why I opened all the numbers.

Marcelo Noronha: I will mention a few factors. I think that the average market or household income commitment is such, and with the ongoing interest rates. I mean, yesterday, there was a drop in the Selic rate from 14.25% to 14%. By looking at the inflation indicators, if you look at IPCA numbers, I can say to you that the landscape is a lot more challenging when you look at the Brazilian credit scenario. If the EBITDA of companies is lower, it is therefore pressured by this interest rate. Because if the duration was short, the effect could have been different. This is a fact, this is a reality. If you allow me, I'll say to you that when you look at SMEs at Bradesco, the way you look at it's not the correct way to look at it. That's why I opened all the numbers.

Marcelo de Araújo Noronha: Our SME growth year over year was BRL 37 billion, BRL 31 billion out of that came from FGO and FGI within that stop loss. The level of loss is minimal. That's one thing. Where does the rest come from? The Plano Empresário that we do middle market, corporate, and company with good developers. The level of formality is different. I'll say to you that our appetite for lower-income clients is much lower when compared to the past. When you look at the portfolio mix, let me give you one piece of information. The clean individual personal loan portfolio in all segments back in 2023, accounted for slightly above 15% of our individual loan portfolio. Today, it accounts for approximately 12%. How come 12%? Well, first of all, we have personal loans. Even in the private segment, the rating is totally different, the structure is different.

Marcelo Noronha: Our SME growth year over year was BRL 37 billion, BRL 31 billion out of that came from FGO and FGI within that stop loss. The level of loss is minimal. That's one thing. Where does the rest come from? The Plano Empresário that we do middle market, corporate, and company with good developers. The level of formality is different. I'll say to you that our appetite for lower-income clients is much lower when compared to the past. When you look at the portfolio mix, let me give you one piece of information. The clean individual personal loan portfolio in all segments back in 2023, accounted for slightly above 15% of our individual loan portfolio. Today, it accounts for approximately 12%. How come 12%? Well, first of all, we have personal loans. Even in the private segment, the rating is totally different, the structure is different.

Marcelo de Araújo Noronha: It's not for all. This is just one example I'm giving you. The mix is totally different. The FGI, FGO total portfolio is close to BRL 80 billion, with a very robust growth, we are well-tractioned, and it's a very resilient portfolio. What happens when you look at NPL over 90 and cost of risk? Cost of risk increases when you are growing with FGO and FGI due to that guarantee claim period. As I said, it goes from 120 until 185 days. You call for provisions of that client that went through the grace period and our peak of production that went from March of last year to October of last year, then we were number 1 in origination. Therefore, we have maturities there, and this puts pressure on the cost of risk. What else could put pressure on the cost of risk?

Marcelo Noronha: It's not for all. This is just one example I'm giving you. The mix is totally different. The FGI, FGO total portfolio is close to BRL 80 billion, with a very robust growth, we are well-tractioned, and it's a very resilient portfolio. What happens when you look at NPL over 90 and cost of risk? Cost of risk increases when you are growing with FGO and FGI due to that guarantee claim period. As I said, it goes from 120 until 185 days. You call for provisions of that client that went through the grace period and our peak of production that went from March of last year to October of last year, then we were number 1 in origination. Therefore, we have maturities there, and this puts pressure on the cost of risk. What else could put pressure on the cost of risk?

Marcelo de Araújo Noronha: Rural or agribusiness through consolidation of the Banco John Deere. If I grow the portfolio, which is a third variable, I also put pressure in the cost of risk at a certain measure, I look at top line and risk-adjusted return. I put the return that is due to that credit showing traction. A lot of people asked me, first time I came here, said, If you lose clients, you won't be able to have any traction. We are showing a lot of traction with payroll loans, SMEs. Our SME is collateralized, is secured. We are not granting credit in that intermediary line. We are well collateralized, much more than in the past. The corporate portfolio was up by BRL 70 billion from the wholesale bank as well with secured lines, good ratings, and the BRL 37 billion, as I said, from SMEs.

Marcelo Noronha: Rural or agribusiness through consolidation of the Banco John Deere. If I grow the portfolio, which is a third variable, I also put pressure in the cost of risk at a certain measure, I look at top line and risk-adjusted return. I put the return that is due to that credit showing traction. A lot of people asked me, first time I came here, said, If you lose clients, you won't be able to have any traction. We are showing a lot of traction with payroll loans, SMEs. Our SME is collateralized, is secured. We are not granting credit in that intermediary line. We are well collateralized, much more than in the past. The corporate portfolio was up by BRL 70 billion from the wholesale bank as well with secured lines, good ratings, and the BRL 37 billion, as I said, from SMEs.

Marcelo de Araújo Noronha: I see that we will continue to grow, moving towards the guidance because our wholesale portfolio fluctuates. Most of what we do in terms of securities goes to Origination for Distribution. We distribute it in the secondary market. There are moments that we are up and moments when we are down, but we grow in other lines, as I said. We also finance aircraft, and our portfolio was up by BRL 1.5 billion in this period. There was a large corporate client, and from other segments from the wholesale bank.

Marcelo Noronha: I see that we will continue to grow, moving towards the guidance because our wholesale portfolio fluctuates. Most of what we do in terms of securities goes to Origination for Distribution. We distribute it in the secondary market. There are moments that we are up and moments when we are down, but we grow in other lines, as I said. We also finance aircraft, and our portfolio was up by BRL 1.5 billion in this period. There was a large corporate client, and from other segments from the wholesale bank.

Marcelo de Araújo Noronha: I'll tell you, now that the market has its own risk, we also look at another indicator that was NPL overnighting for private payroll loan without Bradesco, 8.9% versus 4.5% since we started doing that in a moderate way until we had all of the Dataprev model well in place because we have to do that fine-tuning. We are very careful in terms of managing our portfolio. It's obvious that when we grow the portfolio, when this thing about FGO and FGI and the agribusiness line and John Deere consolidation will bring cost of risk to a slightly higher level, but we are operating with no additional stresses, in my view, for the year 2026. Thank you.

Marcelo Noronha: I'll tell you, now that the market has its own risk, we also look at another indicator that was NPL overnighting for private payroll loan without Bradesco, 8.9% versus 4.5% since we started doing that in a moderate way until we had all of the Dataprev model well in place because we have to do that fine-tuning. We are very careful in terms of managing our portfolio. It's obvious that when we grow the portfolio, when this thing about FGO and FGI and the agribusiness line and John Deere consolidation will bring cost of risk to a slightly higher level, but we are operating with no additional stresses, in my view, for the year 2026. Thank you.

André Carvalho: Thank you, Enrique. If you want to think forward, look at our guidance. We work from the center of the guidance upwards. Next question from Thiago Batista, UBS.

André Carvalho: Thank you, Enrique. If you want to think forward, look at our guidance. We work from the center of the guidance upwards. Next question from Thiago Batista, UBS.

Thiago Batista: Hello, everyone. Good morning. Cassiano, Andre, my question is about return. The ROE achieved is 16%. You can discuss the cost of capital in Brazil, it's around 15% to 16%. We can say that Bradesco or your management delivered ROE that was good. In the future, the next step, could we believe that the ROE continues to grow step by step? Where do you see the levers for this additional growth? Just a follow-up in terms of capital. After the capitalization, Bradesco will pay more and only that, or will it be capitalized more recurrent? What will be the policy of distribution after this capitalization?

Thiago Batista: Hello, everyone. Good morning. Cassiano, Andre, my question is about return. The ROE achieved is 16%. You can discuss the cost of capital in Brazil, it's around 15% to 16%. We can say that Bradesco or your management delivered ROE that was good. In the future, the next step, could we believe that the ROE continues to grow step by step? Where do you see the levers for this additional growth? Just a follow-up in terms of capital. After the capitalization, Bradesco will pay more and only that, or will it be capitalized more recurrent? What will be the policy of distribution after this capitalization?

Marcelo de Araújo Noronha: Let me start by the end. Thank you, Thiago, for your participation and for being here with us, and an opportunity to talk to you. In relation to the capitalization, we will pay the most we can, yes, of IOE. This had to do with our controller decision. At this moment, we don't have any other plan that is on the desk, on the table. For the future, we have to look at the dynamics looking forward. In relation to the ROE, our cost of capital is below 15 today. I would say that after yesterday, it's coming close to 14.5 with a new Selic rate. Yes, I do see an ROE that continues to grow. Obviously, when we capitalize, there's a greater challenge in relation to the ROE, because you increase capital, you have to have greater returns.

Marcelo Noronha: Let me start by the end. Thank you, Thiago, for your participation and for being here with us, and an opportunity to talk to you. In relation to the capitalization, we will pay the most we can, yes, of IOE. This had to do with our controller decision. At this moment, we don't have any other plan that is on the desk, on the table. For the future, we have to look at the dynamics looking forward. In relation to the ROE, our cost of capital is below 15 today. I would say that after yesterday, it's coming close to 14.5 with a new Selic rate. Yes, I do see an ROE that continues to grow. Obviously, when we capitalize, there's a greater challenge in relation to the ROE, because you increase capital, you have to have greater returns.

Marcelo de Araújo Noronha: We do believe that we are continuing in our step by step, growing every quarter. Thiago, this is our horizon, a horizon with this belief. It's not a belief, it's not just faith, it's having your feet on the ground with a plan, with the transformation we've been doing, gaining in productivity, as you've seen with our KPIs, with the portfolio management and with a very engaged team nationwide with over 70,000 employees in our organization. Thank you, Thiago.

Marcelo Noronha: We do believe that we are continuing in our step by step, growing every quarter. Thiago, this is our horizon, a horizon with this belief. It's not a belief, it's not just faith, it's having your feet on the ground with a plan, with the transformation we've been doing, gaining in productivity, as you've seen with our KPIs, with the portfolio management and with a very engaged team nationwide with over 70,000 employees in our organization. Thank you, Thiago.

André Carvalho: Thank you, Thiago. Next question from Gustavo Schroden from Citi.

André Carvalho: Thank you, Thiago. Next question from Gustavo Schroden from Citi.

Gustavo Schroden: Good morning. Thank you, André, Noronha, Cassiano. Congratulations for the ROE and the cost of capital coming back. I would like to talk about NII. Noronha mentioned that at the beginning, that this is strong with clients, but the market NII, let's say, has been surprising even for us. I would like to better understand how we can think of this market NII from now onwards. There was a change in the perspective of interest rates. What is the hedge policy of the bank in relation to portfolios and what goes to the market NII? If you could give us a little bit of help of how to think about the NII from now onwards, that would be great. Thank you.

Gustavo Schroden: Good morning. Thank you, André, Noronha, Cassiano. Congratulations for the ROE and the cost of capital coming back. I would like to talk about NII. Noronha mentioned that at the beginning, that this is strong with clients, but the market NII, let's say, has been surprising even for us. I would like to better understand how we can think of this market NII from now onwards. There was a change in the perspective of interest rates. What is the hedge policy of the bank in relation to portfolios and what goes to the market NII? If you could give us a little bit of help of how to think about the NII from now onwards, that would be great. Thank you.

Marcelo de Araújo Noronha: Gustavo, it's great to see you once again. Thanks for joining us. I'm going to ask Cassiano to start answering, and then I'm going to add any comments.

Marcelo Noronha: Gustavo, it's great to see you once again. Thanks for joining us. I'm going to ask Cassiano to start answering, and then I'm going to add any comments.

Cassiano Scarpelli: Good morning, Gustavo. Well, the market NII was surprising. I think it's important to say. Noronha was very clear. It was very important work from the treasury area and from all the desks. The commercial traction of the bank helped also a part of the desk, which is the commercial desk, the client one, which is perennial, and this has also brought good results. I think that's an important KPI. The energy desk is within this concept as a whole. Another important point is the consistent work we've been doing also. We don't have a hedge policy that is defined. We've talked about that for some time. We do obviously the work in our daily work, seeking opportunities to capture the best possible results if there is some kind of uncoupling in the bank. This is an important result.

Cassiano Scarpelli: Good morning, Gustavo. Well, the market NII was surprising. I think it's important to say. Noronha was very clear. It was very important work from the treasury area and from all the desks. The commercial traction of the bank helped also a part of the desk, which is the commercial desk, the client one, which is perennial, and this has also brought good results. I think that's an important KPI. The energy desk is within this concept as a whole. Another important point is the consistent work we've been doing also. We don't have a hedge policy that is defined. We've talked about that for some time. We do obviously the work in our daily work, seeking opportunities to capture the best possible results if there is some kind of uncoupling in the bank. This is an important result.

Cassiano Scarpelli: We had many important cases of having a specific ALM policy, which is a slower cycle of what we expected in relation to a drop in the interest rate. The commercial and the client side, which has a traction in the wholesale and all the operations for the key accounts and also middle energy. These are structuring things that in the long term leaves us at a more comfortable position in market NII. We also achieved the soft guidance. I think it's important to say that. We believe that it will be slightly ahead, surpassing a little bit the soft guidance. I think you should look at this horizon as 1.5, 1.9.

Cassiano Scarpelli: We had many important cases of having a specific ALM policy, which is a slower cycle of what we expected in relation to a drop in the interest rate. The commercial and the client side, which has a traction in the wholesale and all the operations for the key accounts and also middle energy. These are structuring things that in the long term leaves us at a more comfortable position in market NII. We also achieved the soft guidance. I think it's important to say that. We believe that it will be slightly ahead, surpassing a little bit the soft guidance. I think you should look at this horizon as 1.5, 1.9.

Marcelo de Araújo Noronha: There's still some opportunity. We are very satisfied and comfortable with the ALM and also the commercial traction in terms of energy. The trading, the exploratory one, specific one, is smaller in our ecosystem in the results of treasury. I would like to add the following. We have a good risk management. We have teams, not only one team. We have very competent teams that are working very well, and this is the best answer I have. With great business traction and helping and supporting our clients and all the transactions Cassiano mentioned, of the wholesale bank, of middle market, all that has generated great businesses for us. Today we can think that soft guidance was left behind because we have larger figures coming close to BRL 2 billion. I think that's kind of reasonable.

Cassiano Scarpelli: There's still some opportunity. We are very satisfied and comfortable with the ALM and also the commercial traction in terms of energy. The trading, the exploratory one, specific one, is smaller in our ecosystem in the results of treasury.

Marcelo Noronha: I would like to add the following. We have a good risk management. We have teams, not only one team. We have very competent teams that are working very well, and this is the best answer I have. With great business traction and helping and supporting our clients and all the transactions Cassiano mentioned, of the wholesale bank, of middle market, all that has generated great businesses for us. Today we can think that soft guidance was left behind because we have larger figures coming close to BRL 2 billion. I think that's kind of reasonable. That's my horizon, considering the team we have and everything we've been doing. Thank you.

Marcelo de Araújo Noronha: That's my horizon, considering the team we have and everything we've been doing. Thank you.

André Carvalho: Meaning the result is here to stay, it might be up from now on. Next question from Safra. Good morning, André, Cassiano. Congrats on your results and congrats on your initiative in the direction of capital management. I would like to revisit NIM and cost of risk when it comes to risk-adjusted return that you call RAR, when you think about your exposure, your guarantee. If you isolate these two variables, NIM and cost of risk, I think you have liability margins going down due to the average Selic rate. Since your exposure, in addition to guarantees, I don't see any increment of NIM, but I see further stability. There is another driver that could put pressure upwards, has to do with the worsening of the stages.

André Carvalho: Meaning the result is here to stay, it might be up from now on. Next question from Safra.

Daniel Vaz: Good morning, André, Cassiano. Congrats on your results and congrats on your initiative in the direction of capital management. I would like to revisit NIM and cost of risk when it comes to risk-adjusted return that you call RAR, when you think about your exposure, your guarantee. If you isolate these two variables, NIM and cost of risk, I think you have liability margins going down due to the average Selic rate. Since your exposure, in addition to guarantees, I don't see any increment of NIM, but I see further stability. There is another driver that could put pressure upwards, has to do with the worsening of the stages.

[Analyst] (Safra): We look at what Noronha said, 20 BPS coming from John Deere and other companies that have some guaranteed claims and 10 BPS from stage 3 on the wholesale side. I would like to understand, also related to cost of risk, if you think that that 3.5 level could be increased because of the macro risk. Not necessarily means that you're taking more risk, but the macro scenario is a bit more challenging. My first take is that maybe NIM should be lower and then there'll be more pressure, and with cost of risk will be the opposite. How can you help me think about this equation?

Daniel Vaz: We look at what Noronha said, 20 BPS coming from John Deere and other companies that have some guaranteed claims and 10 BPS from stage 3 on the wholesale side. I would like to understand, also related to cost of risk, if you think that that 3.5 level could be increased because of the macro risk. Not necessarily means that you're taking more risk, but the macro scenario is a bit more challenging. My first take is that maybe NIM should be lower and then there'll be more pressure, and with cost of risk will be the opposite. How can you help me think about this equation?

Marcelo de Araújo Noronha: Well, first, Daniel, thank you so much for joining us. It's always a pleasure to talk to you. Again, I will ask my colleagues to add something after my answer. A lower Selic is positive. It's positive for us. Our liability growth was significant, it's being translated into cash management and more relationships. In turn, in the past 2 years, I think we only had one particular moment when the funding cost reached that level. That all-time low of our funding cost, this helped our NII. When I look at the cost of risk, you're right. The market is worsening, I showed some market indicators like private payroll loan, we have half of NPA over 90. There are other people operating at higher risk. Less so incumbent banks when compared to other banks. That's my feeling.

Marcelo Noronha: Well, first, Daniel, thank you so much for joining us. It's always a pleasure to talk to you. Again, I will ask my colleagues to add something after my answer. A lower Selic is positive. It's positive for us. Our liability growth was significant, it's being translated into cash management and more relationships. In turn, in the past 2 years, I think we only had one particular moment when the funding cost reached that level. That all-time low of our funding cost, this helped our NII. When I look at the cost of risk, you're right. The market is worsening, I showed some market indicators like private payroll loan, we have half of NPA over 90. There are other people operating at higher risk. Less so incumbent banks when compared to other banks. That's my feeling.

Marcelo de Araújo Noronha: We have other effects of higher pressure that are linked to this structural aspect. I talked about agribusiness, FGI and FGO. For me, this is a phenomenon, but it is only a timely one. We are growing, and this continues to happen, but we will see this curve come down, and after some time it will be flat. Therefore, I am very confident in our NII. I am very confident with our NIM and in this whole picture, because, Daniel, I will repeat what I said before. It is not just one line, because when we look at the financial revenue, we are looking at client NII, market NII, and client NII is not only asset but also liabilities. When we look at fee and commissions income that maybe had a relative lower growth, we are believing in this higher growth.

Marcelo Noronha: We have other effects of higher pressure that are linked to this structural aspect. I talked about agribusiness, FGI and FGO. For me, this is a phenomenon, but it is only a timely one. We are growing, and this continues to happen, but we will see this curve come down, and after some time it will be flat. Therefore, I am very confident in our NII. I am very confident with our NIM and in this whole picture, because, Daniel, I will repeat what I said before. It is not just one line, because when we look at the financial revenue, we are looking at client NII, market NII, and client NII is not only asset but also liabilities. When we look at fee and commissions income that maybe had a relative lower growth, we are believing in this higher growth.

Marcelo de Araújo Noronha: There are many lines because as I said, if you look at the entire release, there are nine lines, but when you break it down, there are at least 15 lines, and they are quite diversified. In addition to the insurance group, we have the payment company, meaning that there are many growth levers, especially with cross-selling people. My colleagues talk about cross-selling, this is something that is becoming a reality. There is one piece of data that I talked to journalists earlier on. In this new experience of different instruments, they were not a lever for us until we drew up a very good diagnosis of the market. We

Marcelo Noronha: There are many lines because as I said, if you look at the entire release, there are nine lines, but when you break it down, there are at least 15 lines, and they are quite diversified. In addition to the insurance group, we have the payment company, meaning that there are many growth levers, especially with cross-selling people. My colleagues talk about cross-selling, this is something that is becoming a reality. There is one piece of data that I talked to journalists earlier on. In this new experience of different instruments, they were not a lever for us until we drew up a very good diagnosis of the market. We totally changed our platform because we had two platforms, one for dealers and one for our clients.

Marcelo de Araújo Noronha: totally changed our platform because we had two platforms, one for dealers and one for our clients. We integrated everything. We had efficiency gains, we had commercial improvements. We increased UX dealer experience as well with pricing control to ensure our ARR. We also gained competitiveness in the market. We embarked in this UX. Also, we included the possibility of hiring auto insurance. It is very simple. It is a great experience. We are increasing penetration in this life. When I look at our network of individuals, what we distribute through these segments in Q1 vis-à-vis the entire last year, we grew about 100% because we delivered what we did last year with a possibility of cross-selling when we deliver good experience and connection. I have good expectations in different fronts regardless of the macro environment and the fact that it is much more restricted.

Marcelo Noronha: We integrated everything. We had efficiency gains, we had commercial improvements. We increased UX dealer experience as well with pricing control to ensure our ARR. We also gained competitiveness in the market. We embarked in this UX. Also, we included the possibility of hiring auto insurance. It is very simple. It is a great experience. We are increasing penetration in this life. When I look at our network of individuals, what we distribute through these segments in Q1 vis-à-vis the entire last year, we grew about 100% because we delivered what we did last year with a possibility of cross-selling when we deliver good experience and connection. I have good expectations in different fronts regardless of the macro environment and the fact that it is much more restricted. Please feel free to add your comments.

Cassiano Scarpelli: Please feel free to add your comments. Marcelo, you talked about the fact that transformation is giving us more resilience and the cost of liability is down in Q2, but funding was up by 19%, quarter on quarter, vis-à-vis 2025. We are having more net money. We are seeing the results stemming from this new value proposition, larger margin with lower cost of funding. We said at the beginning of the year that NIM would be flat at 9% this year. We delivered 9.1 Q1 and Q2. It should be close to that range throughout the year. This will be very good for NIM. Next question from Yuri Fernandes with JP Morgan. Thank you. Good morning. Good morning, Oroon, Cassiano, and André.

Cassiano Scarpelli: Marcelo, you talked about the fact that transformation is giving us more resilience and the cost of liability is down in Q2, but funding was up by 19%, quarter on quarter, vis-à-vis 2025. We are having more net money. We are seeing the results stemming from this new value proposition, larger margin with lower cost of funding. We said at the beginning of the year that NIM would be flat at 9% this year. We delivered 9.1 Q1 and Q2. It should be close to that range throughout the year. This will be very good for NIM.

André Carvalho: Next question from Yuri Fernandes with JP Morgan.

Much more restricted. So please feel free to to add your comments Marcelo you, you talked about the fact that transformation is giving me giving us more resilience and the cost of liability is down in the in the second quarter but funding was up but by 19%, you know, quarter on quarter. I mean these are the 2025. So we are having more net money. We are seeing the results stemming from this new value proposition larger margin with lower cost of funding. So we said at the beginning of the year that Nim would be flat at 9% this year. So we deliver 9.1 first quarter and second quarter so it should be closed to that range throughout the year. So this will be very good for Nim.

Next question from Beauty Fernandez with JP Morgan.

Yuri Fernandes: Thank you. Good morning. Good morning, Oroon, Cassiano, and André. I'd like to congratulate the board for this very bold decision, and rightly so, because in the mid to long range, tangible capital is a good path forward. I just have a very quick follow-up about FGI and FGO. I know you have the guaranteed plan. Stage 2 was impacted by that, and there is a time difference until you collect. Do we see provisioning on stage 3? Is there a carryover into stage 3? The other question is on current account, there is another competitor being very vocal in cutting tariffs or fees in checking account. There was this 3% drop year-over-year. This competitor of yours is cutting it to almost 20. Do you see any pressure to accelerate the cut of this fee line, or it's just a fine tuning like you've been doing?

Yuri Fernandes: I'd like to congratulate the board for this very bold decision, and rightly so, because in the mid to long range, tangible capital is a good path forward. I just have a very quick follow-up about FGI and FGO. I know you have the guaranteed plan. Stage 2 was impacted by that, and there is a time difference until you collect. Do we see provisioning on stage 3? Is there a carryover into stage 3? The other question is on current account, there is another competitor being very vocal in cutting tariffs or fees in checking account. There was this 3% drop year-over-year. This competitor of yours is cutting it to almost 20. Do you see any pressure to accelerate the cut of this fee line, or it's just a fine tuning like you've been doing?

I like to congratulate, congratulate the board for this very bold decision, and rightly. So, because in the mid and long range, you know, tangible capital is a good path forward.

I just have a very quick follow-up.

Marcelo de Araújo Noronha: I just want to see what you are doing in this regard. It will help us understand your strategy. Yuri, it's always a pleasure to talk to you again. You've been provoking us for quite some time about that topic. You even wrote that in your report. You also influence the controlling shareholders and colleagues of ours that are in the board of the bank, and we discuss all that. You and some other colleagues mention capital in your analysis. I read what you wrote, and I know that you wrote something about that, and it is correct. I've always told you that that was a very positive contribution and provocation. I'll ask my colleagues to help me with that answer. FGI and FGO, it may spill over to stage 3. Yeah, that's a possibility, but you recover that.

Yuri Fernandes: I just want to see what you are doing in this regard. It will help us understand your strategy.

Marcelo Noronha: Yuri, it's always a pleasure to talk to you again. You've been provoking us for quite some time about that topic. You even wrote that in your report. You also influence the controlling shareholders and colleagues of ours that are in the board of the bank, and we discuss all that. You and some other colleagues mention capital in your analysis. I read what you wrote, and I know that you wrote something about that, and it is correct. I've always told you that that was a very positive contribution and provocation. I'll ask my colleagues to help me with that answer.

About fgi and FG Joe. I know you have the guaranteed claims that she was impacted by that and there is a time time difference until you collect. I mean, do we see provisioning on stage 3? Is there a carryover into Stage 3? And the other question is on, you know, current account there is another competitor being very vocal in cutting tariffs or fees in checking account. There is a 3% drop year-over-year, but this competitor of yours is cutting it to almost 20. Do you see any pressure to accelerate the cut of this fee line, or is just a fine-tuning? Like you've been doing. I just want to see, you know, what you were doing in this regard. It will help us understand. Your strategy is always a pleasure to talk to you again. You've been provoking us for quite some time about that topic. You even wrote that in your report?

And so,

You also influence the controlling shareholders and and colleagues of ours that are in the board of the bank and we discuss all that you and some other colleagues. It's just back to the mentioned.

Cassiano Scarpelli: FGI and FGO, it may spill over to stage 3. Yeah, that's a possibility, but you recover that.

Capital in your analysis—I read what you wrote, and I know that you wrote something about that, and it is correct. I’ve always told you that was a very positive contribution and provocation. I’ll ask my colleagues to help me with that answer, but FGI and FG. Oh,

André Carvalho: Sometimes you think, Well, I will not collect for some time. No, because we get paid every month. If that 120 day period is over, but then you have the maturity of someone else's period because the grace period of that other person is over. There is a flow. It's in and out. There is a dynamic of different stages, of in and out. Wholesale banks, this is public. The dynamic was securities and a piece of derivative, and you brought that straight to stage 3. That could affect, yes, but we are within the guarantee period and very comfortable in terms of what we are doing. André Duarte and his team and portfolio management team, they're looking at that constantly. They do stop-loss scenarios, stress scenarios. We are very confident in terms of what we are delivering.

Cassiano Scarpelli: Sometimes you think, Well, I will not collect for some time. No, because we get paid every month. If that 120 day period is over, but then you have the maturity of someone else's period because the grace period of that other person is over. There is a flow. It's in and out. There is a dynamic of different stages, of in and out. Wholesale banks, this is public. The dynamic was securities and a piece of derivative, and you brought that straight to stage 3. That could affect, yes, but we are within the guarantee period and very comfortable in terms of what we are doing. André Duarte and his team and portfolio management team, they're looking at that constantly. They do stop-loss scenarios, stress scenarios. We are very confident in terms of what we are delivering.

Is over. So there is a flow in and out there is a dynamic of different stages, you know?

In and out.

Wholesale banks. I mean, this is public. The dynamic was securities and a piece of derivative, and you brought that straight to stage 3, so that could affect, yes. But...

Marcelo de Araújo Noronha: In terms of current account fees, that's a fact, and we talked about that. The trend is not to grow but much to the country

Cassiano Scarpelli: In terms of current account fees, that's a fact, and we talked about that. The trend is not to grow but much to the country

We are within the guarantee period and very comfortable in terms of what we are doing and red white and his team and portfolio management. Team, they're looking at that constantly. They they do stop loss scenarios stress scenarios. We are very confident in terms of what we are. Delivering, in terms of current account fee. That's a fact. And we talked about that the trend is not to grow, but

Cassiano Scarpelli: There is another aspect which is Bradesco Expresso. It's been posting continuous growth. Eventually, you may see a more significant growth as we did with the number of account holders. There is also seasonality of account fee periods. I don't think that this line can support fee growth. I think that fees will still come from consortia, from asset management, from investment bank. The brokerage firm was really important to us, quite strong. Credit cards that didn't grow as much. If you look at a comparison line, we have a lot of companies. We and Banco do Brasil, we have Livelo, Cielo, we have Elo. We have the Elo, and in the case of Elo, it went through a regulation, and it lost some revenue lines. Even then, the results are quite resilient.

Cassiano Scarpelli: There is another aspect which is Bradesco Expresso. It's been posting continuous growth. Eventually, you may see a more significant growth as we did with the number of account holders. There is also seasonality of account fee periods. I don't think that this line can support fee growth. I think that fees will still come from consortia, from asset management, from investment bank. The brokerage firm was really important to us, quite strong. Credit cards that didn't grow as much. If you look at a comparison line, we have a lot of companies. We and Banco do Brasil, we have Livelo, Cielo, we have Elo. We have the Elo, and in the case of Elo, it went through a regulation, and it lost some revenue lines. Even then, the results are quite resilient.

Much to the country.

But there is another aspect, which is bradesco espresso.

We've been posting continuous growth, and eventually, you may see more significant growth, as we did with the number of account holders.

There is also seasonality.

Of account fee period. But I don't, I don't think that this line can support fee growth. I think that these will still come from Consortium from Asset Management from Investment Bank. I mean, the brokerage firm was really important to us quite strong, but credit cards that didn't grow as much. If you look at a comparison line, we have a lot of companies we and Bank of Brazil we live we value we have Lo we have the L.

André Carvalho: We lose a little bit on the fee side. This will go back to normal. We will see the recovery of these lines over time. We have a lot of ways to recover in some of the lines. Yuri, thank you again. I think you said it all. There is a mechanism coming from Bradesco Expresso. Current account is also linked to new value propositions for services, not necessarily the traditional banking fees that have been good for us. This will smooth out the drop in the curve. Our commercial strength is mostly focused on digital retail. That mostly comes from Expresso. Thank you, Yuri. Next question, Pedro Leduc from Itaú BBA.

Cassiano Scarpelli: We lose a little bit on the fee side. This will go back to normal. We will see the recovery of these lines over time. We have a lot of ways to recover in some of the lines. Yuri, thank you again. I think you said it all. There is a mechanism coming from Bradesco Expresso. Current account is also linked to new value propositions for services, not necessarily the traditional banking fees that have been good for us. This will smooth out the drop in the curve. Our commercial strength is mostly focused on digital retail. That mostly comes from Expresso.

And the case of Lo he went through a regulation and it lost some Revenue life. But even then, the results are quite resilient. We we lose a little bit on the seaside, but this will go back to normal.

We will see the recovery of the wines over time, but we have a lot of ways to recover in some of the lines in Beauty. Thank you, again. I thank you for that at all. There is a mechanism is coming from Pesco. Espresso current account is also linked to new value proposition for services. Not necessarily the traditional

André Carvalho: Thank you, Yuri. Next question, Pedro Leduc from Itaú BBA.

Pedro Leduc: Thank you, Andre. Good morning, everyone. Noronha Cassiano. The question involves the corporate loan portfolio and also securities and DCM. Companies grew 7%, and CVM almost 9%, securities. The origination is strong. Noronha also put the ranking. We didn't see a correspondence in the line of revenues with financial advisory services. The portfolio grows. You don't see the revenue in the fee. LLP was lower in the corporate area. RWA was pulled by the expansion of corporate. I didn't see a counterpart. The LLP was a surprise due to the origination. I thought it would be higher. Could you please help us better understand these moving pieces, Noronha? What we can think about for the second semester?

Pedro Leduc: Thank you, Andre. Good morning, everyone. Noronha Cassiano. The question involves the corporate loan portfolio and also securities and DCM. Companies grew 7%, and CVM almost 9%, securities. The origination is strong. Noronha also put the ranking. We didn't see a correspondence in the line of revenues with financial advisory services. The portfolio grows. You don't see the revenue in the fee. LLP was lower in the corporate area. RWA was pulled by the expansion of corporate. I didn't see a counterpart. The LLP was a surprise due to the origination. I thought it would be higher. Could you please help us better understand these moving pieces, Noronha? What we can think about for the second semester?

Banking fees that have been good for us and this will loose out the drop in the curve, but our commercial strength is mostly focused on digital retail that mostly comes from espresso. Thank you yudi. Next question. Pedro Lei from it. Thank you. And

Marcelo de Araújo Noronha: Thank you for joining us. It's great to talk to you. Thank you for your question. LLP was not so lower, BRL 400 million, because we still had slight adjustments in a major case I mentioned. Wholesale banks, you might have a specific case that could stress at a specific moment. There is no zero risk. We did the provision immediately. We are very precise in relation to that when we see that things are not going adequately, a negotiation that is very well known in the market. The growth of the wholesale bank was, I go back, in securities. It was in also sureties and guarantees in the Plano Empresário. We were second in the market with this growth of the Plano Empresário. In one or other specific line, for example, we financed more than one M&A with good guarantees. I mentioned another operation.

Marcelo Noronha: Thank you for joining us. It's great to talk to you. Thank you for your question. LLP was not so lower, BRL 400 million, because we still had slight adjustments in a major case I mentioned. Wholesale banks, you might have a specific case that could stress at a specific moment. There is no zero risk. We did the provision immediately. We are very precise in relation to that when we see that things are not going adequately, a negotiation that is very well known in the market. The growth of the wholesale bank was, I go back, in securities. It was in also sureties and guarantees in the Plano Empresário. We were second in the market with this growth of the Plano Empresário. In one or other specific line, for example, we financed more than one M&A with good guarantees. I mentioned another operation.

Good morning everyone. The question involves the corporate long portfolio and also security, and DCM companies grow 7% and TVM almost 9 Securities. And so the origination is strong though, doing a also put the ranking, we didn't see a correspondence in the line of revenues with financial advisory services. So if you it is the portfolio grows but you don't see the revenue in the fee and also LP was lower in the corporate area. So, rwa was pulled by the expansion of corporate but I didn't see a counterpart. And the LLP was a surprise to, to the origination. I thought it would be higher, could you please help us better understand these moving pieces and what we can think about for the second semester,

Thank you for joining us.

It's great to talk to you. Thank you for your question.

LLP was not.

so lower 400 million because we still had slight adjustments in a major case I mentioned, but

You know, wholesale banks—you might have a specific case that could create stress at a specific moment. There is no zero risk, but we made the provision immediately.

Is very well known in the market.

The growth of the wholesale Bank was I go back insecurities.

And it was in also, shies and guarantees in the plan. We were second in the market with this growth of the planning Presario and in one or other specific line. For example, we financed more than one MMA with good guarantees. And I mentioned another operation.

Marcelo de Araújo Noronha: I avoid talking about the industry, otherwise it's too specific, it's a net guarantee in terms of provision. We have a good coverage level. In relation to DCM, we have fees because the Q2 last year was very strong in operations. That's why there is this slightly lower variation. The bulk of securities is PD. You will see, Leduc, that they will vary, they will fluctuate unless we have a demand to replace that. We will see this in the secondary market. There was an exit from the secondary market. If I'm not mistaken, we once again reached the bottom of the spreads with more assets in the market, and they balanced, and we reached the bottom, and people labeled some assets. That's the chance of getting greater margins. You don't commit so much capital.

Marcelo Noronha: I avoid talking about the industry, otherwise it's too specific, it's a net guarantee in terms of provision. We have a good coverage level. In relation to DCM, we have fees because the Q2 last year was very strong in operations. That's why there is this slightly lower variation. The bulk of securities is PD. You will see, Leduc, that they will vary, they will fluctuate unless we have a demand to replace that. We will see this in the secondary market. There was an exit from the secondary market. If I'm not mistaken, we once again reached the bottom of the spreads with more assets in the market, and they balanced, and we reached the bottom, and people labeled some assets. That's the chance of getting greater margins. You don't commit so much capital.

I avoid talking about the industry, otherwise it's too specific but it's a net uh guarantee uh in terms of provision. But we have a good coverage level.

And in relation to DCM, we have fees. Because the second quarter last year was very strong in operations, that's why there is this slightly lower variation but the bulk of security is PD. You will see the doctor that they will vary. They will fluctuate unless we have a demand to replace that, but we will see this in the secondary Market. There was an exit from the secondary Market, if I'm not mistaken.

Marcelo de Araújo Noronha: In our business model, which is no different from other banks that practice that, our REM and the segment that did that in OPP, they only check the results of that at the end to stimulate that so that we are going to do this movement in the portfolio. We were leaders in origination, that's not what we want at the end of the day. We want the risk-adjusted return. In relation to investment bank or any segment in the wholesale bank, you cannot operate with the RAR that is specified there. I'm going to go from securities to Finame operations for heavy vehicles. If there is a client that has a strong relationship with us, we don't look just at that type of operation. Why is that? Because you have a specific fee, so the RAR could be lower.

Marcelo Noronha: In our business model, which is no different from other banks that practice that, our REM and the segment that did that in OPP, they only check the results of that at the end to stimulate that so that we are going to do this movement in the portfolio. We were leaders in origination, that's not what we want at the end of the day. We want the risk-adjusted return. In relation to investment bank or any segment in the wholesale bank, you cannot operate with the RAR that is specified there. I'm going to go from securities to Finame operations for heavy vehicles. If there is a client that has a strong relationship with us, we don't look just at that type of operation. Why is that? Because you have a specific fee, so the RAR could be lower.

We once again reached the bottom of the spread, with more assets in the market, and they balanced. We raised the bottom, and people leave with some assets. That's the chance of getting greater margin. You don't commit so much capital in our business model, which is no different from the banks that practice that RM, and the segment that did that and OPD—they only checked the results of that at the end to stimulate that. So, we are going to do this movement in the portfolio.

We were leaders in origination.

So, well, we wanted the end.

At the end of the day, we want the risk-adjusted return.

In relation to the Investment Bank, or any segment in the Wholesale Bank, you cannot operate with the "R" that is specified there.

I'm going to go from Securities to finam operations for heavy because if there is a client that has a strong relationship with us, we don't look just at that type of operation. And why is that? Because you have

Marcelo de Araújo Noronha: If you have a client with a high RAR, we look at the combination of that because it's a client that gives me payroll, they have cash with me, they've got a great relationship, especially in the private. We look at the whole relationship, that's logical. Then I say, "Okay, I'll do this kind of operation with this client," because it removes the RAR from the client, it compensates the bank adequately. Thank you, Pedro. It's great to talk to you. Next question from Eduardo Rosman from BTG. Rosman?

Marcelo Noronha: If you have a client with a high RAR, we look at the combination of that because it's a client that gives me payroll, they have cash with me, they've got a great relationship, especially in the private. We look at the whole relationship, that's logical. Then I say, "Okay, I'll do this kind of operation with this client," because it removes the RAR from the client, it compensates the bank adequately.

André Carvalho: Thank you, Pedro. It's great to talk to you. Next question from Eduardo Rosman from BTG. Rosman?

Uh specific fee. So the our our could be lower, but if you have a client with a high R, we look at the combination of that because it's a client that gives me payroll, they have cash with me. They've got a great relationship especially in the private, so we look at the whole relationship that's logical and then I say, okay I'll do this kind of operation with this client because it removes the ra from the client, but it compensates. The bank adequately.

Thank you, Pedro.

It's great to talk to you. Next question from Eduardo, husband from btg Rosman.

Eduardo Rosman: Good morning, everyone. Thanks for the opportunity. I'd like to go back to the directed credit that you have been focusing a lot on, we've seen other banks also, and also fintechs focusing on the ear-marked credits. I would like to better understand the sustainability, not only of the size of the programs, because it was impacting the fiscal part and inflation, and the cost of capital could go down. What should be the return to operate in these plans throughout time? Should we expect some kind of pressure on return from now on due to the increased interest of the participants?

Eduardo Rosman: Good morning, everyone. Thanks for the opportunity. I'd like to go back to the directed credit that you have been focusing a lot on, we've seen other banks also, and also fintechs focusing on the ear-marked credits. I would like to better understand the sustainability, not only of the size of the programs, because it was impacting the fiscal part and inflation, and the cost of capital could go down. What should be the return to operate in these plans throughout time? Should we expect some kind of pressure on return from now on due to the increased interest of the participants?

Good morning, everyone. Thank you for the opportunity. I'd like to go back.

To the directed credit that you have been focusing a lot on—and we've seen other banks also, and also fintechs, focusing on the earmarked credits—I would like to better understand the sustainability not only of the size of the programs, because it was impacting the fiscal part and inflation, and the cost of capital could go down. But what should be the return to operate in these plans throughout time? Should we expect some kind of pressure on return from now on?

Marcelo de Araújo Noronha: Thanks, Rosman. Once again, it's great to meet you here. Thanks for the question. Let me say the following. The bank has, from the very beginning, participated in practically all the lines. We're present in all the 5 lines of FGI and FGO in a very competitive way. It is natural that it will hit the primary. That's why the resources are finite. This is a huge opportunity, and it has to do with 2 points or even 3 points. First of all, it's a long-term line, so it's sustainable with excellent guarantee. RAR, the risk-adjusted return of this operation is very high here. If you talk to other players, they're going to say the same thing. If it is within a stop loss, obviously it's very well managed. In the long term, it is sustainable for some time, and you generate cross-selling.

Marcelo Noronha: Thanks, Rosman. Once again, it's great to meet you here. Thanks for the question. Let me say the following. The bank has, from the very beginning, participated in practically all the lines. We're present in all the 5 lines of FGI and FGO in a very competitive way. It is natural that it will hit the primary. That's why the resources are finite. This is a huge opportunity, and it has to do with 2 points or even 3 points. First of all, it's a long-term line, so it's sustainable with excellent guarantee. RAR, the risk-adjusted return of this operation is very high here. If you talk to other players, they're going to say the same thing. If it is within a stop loss, obviously it's very well managed. In the long term, it is sustainable for some time, and you generate cross-selling.

Due to the increase in interest of the participants, thanks Rosman once again. It's great to meet you here. Thanks for the question.

Let me say the following.

The bank has from the very beginning. Participated in practically all the lines were present in all the 5 lines of fgi and fgo in a very competitive way. It is natural that it will hit the primary. That's why the resources are finite.

But this is a huge opportunity.

And it has to do with two points, or even three points.

So it's sustainable with excellent guarantee. R. A r, the risk adjusted return of this. Operation is very high here.

Marcelo de Araújo Noronha: You increase the possibility of RAR even more. 3rd, for the client, for the company, the level of fees and the period of time is very interesting, so you expand the relationship. For us, this is extremely relevant. What about production? It could be in the short term, yes, but the permanence is in the long term also. You have lines until 5 years with 1-year grace period, and we play this game very well. We were the greatest in origination last year and this semester too. What about the pressure on return? It will not generate, but we will also create, as a consequence, a relationship with a client that is quite resilient in terms of payment, because it's only the minority that is past due. I don't see any kind of pressure in terms of new players.

Marcelo Noronha: You increase the possibility of RAR even more. 3rd, for the client, for the company, the level of fees and the period of time is very interesting, so you expand the relationship. For us, this is extremely relevant. What about production? It could be in the short term, yes, but the permanence is in the long term also. You have lines until 5 years with 1-year grace period, and we play this game very well. We were the greatest in origination last year and this semester too. What about the pressure on return? It will not generate, but we will also create, as a consequence, a relationship with a client that is quite resilient in terms of payment, because it's only the minority that is past due. I don't see any kind of pressure in terms of new players.

If you talk to other players, they're going to say the same thing: if it is within the stop loss, obviously, it is very well managed, so in the long term, it is sustainable for some time, and you generate cross-selling. So, you increase...

The possibility of our offer is even more interesting for the client and for the company—the level of fees and the period of time is very interesting. So, you expand the relationship.

For us, this is extremely relevant. But what about production? It could be in the short term. Yes. But the permanence is in the long term, also because then you have lines until five years, with a one-year grace period. And we play this game very well. We were the greatest in origination last year, and in this semester too. What about the pressure on return? It will not generate, but we will also create, as a consequence, a relationship with a client that is quite resilient in terms of payment, because it's only a minority that is past due. So, I don't see...

Marcelo de Araújo Noronha: I think we're extremely competitive, and we are showing that the ability of penetration and the FGO contracting, which is extremely good for clients and also FGI. We do have space in some lines to operate, but obviously, if there is no contribution from now on, it will dry the capacity of the fund to guarantee that in the markets in the long term. For 2026, I don't believe we might have a pressure at the end of the year, but no deviations from this capacity of production. A comment, I think Cassiano from Banco do Brasil did. It is one of the best lines promoted by the federal government because it does actually go towards the companies until a specific size, both in FGI and FGO. This is my opinion in terms of programs, of social programs. I think these lines are really the best.

Marcelo Noronha: I think we're extremely competitive, and we are showing that the ability of penetration and the FGO contracting, which is extremely good for clients and also FGI. We do have space in some lines to operate, but obviously, if there is no contribution from now on, it will dry the capacity of the fund to guarantee that in the markets in the long term. For 2026, I don't believe we might have a pressure at the end of the year, but no deviations from this capacity of production. A comment, I think Cassiano from Banco do Brasil did. It is one of the best lines promoted by the federal government because it does actually go towards the companies until a specific size, both in FGI and FGO. This is my opinion in terms of programs, of social programs. I think these lines are really the best.

Any kind of press. Sure. In terms of new players, I think we're extremely competitive and we are showing that the ability to of penetration and the fgo Contracting, which is extremely good for clients and also fgi. So, we do have space in some lines to operate. But obviously if there is no,

Contributions from now on, you know, will dry the capacity of the fund to guarantee that in the market in the long term for 2026. I don't believe we might have pressure at the end of the year, but no deviations from this capacity of production.

André Carvalho: Thank you, Rosman, for your question. Great to see you. Thank you, Rosman. Next question from Matheus Guimarães from XP. Matheus?

Marcelo Noronha: Thank you, Rosman, for your question. Great to see you.

André Carvalho: Thank you, Rosman. Next question from Matheus Guimarães from XP. Matheus?

Matheus Guimarães: Good morning, André, Noronha, Cassiano. Congratulations on the results, and thanks for the opportunity to ask a question. I'd like to talk about the private payroll-deductible loan. You reported very relevant growth, both sequential and year on year. The product has gone through some changes. It is even controversial for some competitors. It is more difficult for some. For others, they continue to operate with it. I'd like you to share with us

Matheus Guimarães: Good morning, André, Noronha, Cassiano. Congratulations on the results, and thanks for the opportunity to ask a question. I'd like to talk about the private payroll-deductible loan. You reported very relevant growth, both sequential and year on year. The product has gone through some changes. It is even controversial for some competitors. It is more difficult for some. For others, they continue to operate with it. I'd like you to share with us Your vision in relation to the product, considering these new changes and what we can think about this line's growth from now on.

And a comment I think that's from did it is 1 of the best lines promoted by the federal government because it does actually go towards the companies until a specific size both in fgi and FG. Oh, this is my opinion in terms of programs of social programs. I think these lines are really the best. Thank you Rosman for your question. Great to see you. Thank you Rosman. Next question from matilsky, Ms. From XP Mateo.

Good morning. Congratulations. For the results, and thanks for the opportunity to ask a question.

Talk about the private, payroll deductible loan, you reported very relevant growth, both sequential and ear on ear.

The product has gone through some changes.

Controversial for some competitors.

Marcelo de Araújo Noronha: Your vision in relation to the product, considering these new changes and what we can think about this line's growth from now on. André, you start, and then I will add some comments. Thanks for your participation. It's great to talk to you. André will start answering, and we will add on some comments. Matheus, this is a project that is getting to be more mature. It was launched in March 2025. In July last year, Dataprev were making great observations. The risk was lower in that front, and we started defining the filter so that in October we could accelerate the origination, always keeping the discipline and the RAR. The focus on RAR is very attractive for us. We showed you that the delinquency scenario is stable, 4.7% in June, and the market is 8.9% and growing.

It is more difficult for some for others, they continue to operate with it. I'd like you to share with us.

Marcelo Noronha: André, you start, and then I will add some comments. Thanks for your participation. It's great to talk to you. André will start answering, and we will add on some comments.

your vision in relation to the product considering these new changes and what we can think about this lines growth from now on that you start and then I'll let

André Carvalho: Matheus, this is a project that is getting to be more mature. It was launched in March 2025. In July last year, Dataprev were making great observations. The risk was lower in that front, and we started defining the filter so that in October we could accelerate the origination, always keeping the discipline and the RAR. The focus on RAR is very attractive for us. We showed you that the delinquency scenario is stable, 4.7% in June, and the market is 8.9% and growing.

Some comments, thanks for your participation. It's great to talk to you, Andrea. We'll start answering, and we will add on some comments. This is a product that is getting to be more mature. It was launched in March, 25 in July last year, we were making great for observations. The risk was lower in that front.

Cassiano Scarpelli: It's a very risky product that caters to lower income people and has a high risk here. With the right filters, we were able to define the audience and to lend. This origination increased a lot, and it has been keeping stable through time. We received additional guarantees recently with FGTS, but they have some restrictions in terms of use, some limitations, which place a low additional value as a guarantee. For us, this doesn't impact so much in terms of origination, but obviously the more guarantees, the better. It's a small impact in terms of origination. I would like to add the following. We were very careful to delay a stronger entrance until we were very sure about Dataprev. When we felt sure about it, then we did effectively start to operate.

André Carvalho: It's a very risky product that caters to lower income people and has a high risk here. With the right filters, we were able to define the audience and to lend. This origination increased a lot, and it has been keeping stable through time. We received additional guarantees recently with FGTS, but they have some restrictions in terms of use, some limitations, which place a low additional value as a guarantee. For us, this doesn't impact so much in terms of origination, but obviously the more guarantees, the better. It's a small impact in terms of origination.

And we started defining the filter so that in October we could accelerate, the origination always, keeping the discipline and the r, the focus on our R is very attractive for us. We showed you that the delinquency scenario is stable 4.7% in June and the market is 8.9 and growing. So it's a very risky product that caters to lower income people and has a high risk here. So with the right filters, we were able to define the public the audience and to lend. So this origination increased a lot and it has been keeping stable through time. We received additional guarantees recently with fgts

Marcelo Noronha: I would like to add the following. We were very careful to delay a stronger entrance until we were very sure about Dataprev. When we felt sure about it, then we did effectively start to operate. We have to approve the credit for the individual and for the corporate side. It's important. What André mentioned, and I mentioned beforehand around the delinquency, the over 90 NPL without Bradesco and how we're doing. We do have capacity for origination. In this market specifically, having 14% share in the total of payroll loans. In the private, we only have seven. The opportunity we have is of growth, and it's not of loss, it's of growth, and we believe that we will continue to grow. Cassiano?

As a guarantee for us, this doesn't impact so much in terms of origination, but obviously, the more guarantees, the better. But it's a small impact. In terms of origination, I would like to add the following.

Marcelo de Araújo Noronha: We have to approve the credit for the individual and for the corporate side. It's important. What André mentioned, and I mentioned beforehand around the delinquency, the over 90 NPL without Bradesco and how we're doing. We do have capacity for origination. In this market specifically, having 14% share in the total of payroll loans. In the private, we only have seven. The opportunity we have is of growth, and it's not of loss, it's of growth, and we believe that we will continue to grow. Cassiano? Yes, according to the filters, and André mentioned that well, it's a product, if you look at it from A to Z, it's very good.

Cassiano Scarpelli: Yes, according to the filters, and André mentioned that well, it's a product, if you look at it from A to Z, it's very good.

André Carvalho: I think there is a good road, but with caution. Thank you, Matheus. Next question comes from Carlos Gomez-Lopez from HSBC. Carlos, the floor is yours.

We were very careful to delay a stronger. Uh, entrance until we had very we were very sure about that a pre when we felt sure about it, then we did effectively start to operate, we have to approve the credit for the individual and for the corporate side. So, it's important and what Andrea mentioned, and I mentioned beforehand around the delinquency, the over 90 n without brais and how we are doing. So, we do have capacity for origination and in this market, specifically having 14% share in the total of payroll loans, in the private, we only have 7. So, the opportunity we have is of growth and it's not of loss, it's of growth and we believe that we will continue to grow the channel. Yes. According to the filters and address mentioned that, well, it's a product. If you look at it from 8 to Z, it's very

Cassiano Scarpelli: I think there is a good road, but with caution.

André Carvalho: Thank you, Matheus. Next question comes from Carlos Gomez-Lopez from HSBC. Carlos, the floor is yours.

Good. As you increase the tail of the government’s program, there is greater risk for appetite, and we have to be careful with our corporate clients in-house. This is the cluster we focus on, and everything leads to that. So, I think there is a good road ahead, but with caution. Thank you, Ms.

Next question comes from chbc floor is yours.

Carlos Gomez-Lopez: Thank you so much, André, team, congratulations on the results and congratulations on the capital increase. I have my traditional question on insurance. Your guidance for insurance is still 6% to 8%. Your result this H1 of the year has been very strong, 14%. Should we expect a normalization in the H2 of the year? If I can add one more thing, you mentioned that you want to increase your tangible equity. Which tangible equity metric are you looking at? Is it tangible equity to assets or tangible equity to loans? What level would you like to have? In my numbers, you have 5.9% tangible equity to assets. You used to have 6.5% to 7%. What level would you like to achieve? Thank you.

Carlos Gomez-Lopez: Thank you so much, André, team, congratulations on the results and congratulations on the capital increase. I have my traditional question on insurance. Your guidance for insurance is still 6% to 8%. Your result this H1 of the year has been very strong, 14%. Should we expect a normalization in the H2 of the year? If I can add one more thing, you mentioned that you want to increase your tangible equity. Which tangible equity metric are you looking at? Is it tangible equity to assets or tangible equity to loans? What level would you like to have? In my numbers, you have 5.9% tangible equity to assets. You used to have 6.5% to 7%. What level would you like to achieve? Thank you.

Marcelo de Araújo Noronha: Thank you, Carlos. Great to see you again. I think we can start with him and then, May. May, would you like to answer the first question?

Marcelo Noronha: Thank you, Carlos. Great to see you again. I think we can start with him and then, May. May, would you like to answer the first question?

Uh, thank you so much uh, Andre team, congratulations on the results and congratulations on the capital increase. Um, I had a question, my traditional question on insurance. Uh, your guidance for insurance is still 628% your result. This first half of the year has been very strong 14%, should we expect a normalization in the second half of the year? And if I can add 1 more thing. You mentioned that you want to increase your tangible equity, which tangible Equity metric. Are you looking at, is it tangible Equity to assets or tangible Equity to loans. And what level would you like to have in my numbers? You have 5.9% to assets. You used to have 6 and a half 7%. What level would you like to achieve? Thank you.

Thank you, Carlos. Great to see you again.

Uh, I think we can start with

with him and then

[Company Representative] (Banco Bradesco): Sure. First of all, good morning, everyone. Our expectation is to come to the end of the H2, pretty much in line with the guidance. In fact, I'm not saying it's going to be a deceleration, but our 2025 base was quite high in the H2, which is business as usual for insurance companies. We had a better performance vis-a-vis the guidance for the H2, but our expectation here, as I said, with a higher base in the H2, we hope to deliver something very close to the midpoint or slightly above the guidance for the year.

Ney Dias: Sure. First of all, good morning, everyone. Our expectation is to come to the end of the H2, pretty much in line with the guidance. In fact, I'm not saying it's going to be a deceleration, but our 2025 base was quite high in the H2, which is business as usual for insurance companies. We had a better performance vis-a-vis the guidance for the H2, but our expectation here, as I said, with a higher base in the H2, we hope to deliver something very close to the midpoint or slightly above the guidance for the year.

may, would you like to to answer the first question?

Sure.

I think first of all good morning everyone.

Expectation.

Is to come to the end of the second half. Pretty much in line with the guidance. In fact, I'm not saying it's going to be a deceleration but

our 2025 base was quite high in the second half, which is

this is as usual for insurance companies.

Marcelo de Araújo Noronha: Thank you, May. Well, Carlos, the intangible capital. We do not have any specific metric of where we want to go, but the more our own capital, the more capital we have, the better, and intangible capital is important. The assumption is to have very robust capital to face the growth of the bank and to face macroeconomic ups and downs. Also when it comes to a balance in the reduction of our tax credit. This is the main foundation behind the intangible capital and the growth that leads to capital increase. We do not have a target, but the more capital we have, be it Tier 1 or whatever could be put at the disposal of results, which is the case of this capital increase, is what will strengthen us for the next cycle in the reduction of DTA. Well, the main point here is profit, net income.

Marcelo Noronha: Thank you, May. Well, Carlos, the intangible capital. We do not have any specific metric of where we want to go, but the more our own capital, the more capital we have, the better, and intangible capital is important. The assumption is to have very robust capital to face the growth of the bank and to face macroeconomic ups and downs. Also when it comes to a balance in the reduction of our tax credit. This is the main foundation behind the intangible capital and the growth that leads to capital increase. We do not have a target, but the more capital we have, be it Tier 1 or whatever could be put at the disposal of results, which is the case of this capital increase, is what will strengthen us for the next cycle in the reduction of DTA. Well, the main point here is profit, net income.

We had a better performance. These are the guidance for the second half but our expectation here, as I said with a higher higher base in the second half we we hope to deliver something very close to the the midpoint or a slightly above the guidance for the year.

Thank you, Nate. Well, Carlos, the intangible capital—I mean, we don't have any specific metric of where we want to go, but the more...

You know, our own Capital, the more Capital we have the better and intangible capital is important. I mean, the assumption is to have a very robust Capital to face the growth of the bank and to face macroeconomic ups and downs. And also, when you come to a balance in the reduction of our tax credit, this is the the main Foundation behind the intangible capital and the growth that that leads to Capital increase. I mean is is this we don't have a Target but the more Capital we have be it, I mean Tier 1 or whatever could be put at the disposal of results, which is the case of this Capital increases what will

André Carvalho: We want to reduce that gap of tax credit, increasing tangible capital. It is always good to see you, Carlos. Thank you. Next question from Renato Meloni with Autonomous.

Marcelo Noronha: We want to reduce that gap of tax credit, increasing tangible capital. It is always good to see you, Carlos. Thank you.

André Carvalho: Next question from Renato Meloni with Autonomous.

And we want to reduce that gap of tax credit. Increasing tangible Capital. It's always good to see you Carlos. Thank you. Next question from hinnad Milani with autonomous

Renato Meloni: Good morning, congrats on another impressive ROE. I would like to revisit the dynamics in the H2. You said that you are expecting to reach a guidance from the middle to the high level, which would imply in the acceleration of your risk-adjusted NII, like 2% in the Q2. At the same time, you said that your portfolio growth should converge towards the guidance, but it is running way above it with NII net of provisions of 9.1%, which is flat, and there are some issues related to provisioning. I would just like to reconcile all of these aspects that are probably putting some pressure on your risk-adjusted margin.

Renato Meloni: Good morning, congrats on another impressive ROE. I would like to revisit the dynamics in the H2. You said that you are expecting to reach a guidance from the middle to the high level, which would imply in the acceleration of your risk-adjusted NII, like 2% in the Q2. At the same time, you said that your portfolio growth should converge towards the guidance, but it is running way above it with NII net of provisions of 9.1%, which is flat, and there are some issues related to provisioning. I would just like to reconcile all of these aspects that are probably putting some pressure on your risk-adjusted margin.

Good morning. My name is and congrats on.

Another impressive, I would like to revisit the dynamic in the second half. You said that you were expecting to reach a guidance from the middle to the high level which would imply in the acceleration of your

You know, risk adjusted, nii like, 2% in the second quarter. At the same time. You said that your portfolio growth should converge towards the guidance, but it's running way above it with

You know, knee net of provisions of 9.1, which is flat. And there is some

Marcelo de Araújo Noronha: Renato, it is a pleasure to talk to you again, thank you for joining us. Andre, I think you can start. Well, thank you, Renato and Marcelo. Our step-by-step commitment of increasing net income every quarter implies that by the end of 2026, our net income that is implicit in the guidance from the midpoint to the top. That is what I said, that is from mid to upwards, aligned with step-by-step commitment of profitability increase. Our guidance consists of five lines, we are very confident that we will deliver all five lines within the intervals of the guidance. Every line in its proper place. We just said that insurance should be from the center upwards, services close to the top, expenses closer to the floor of the guidance. NII net of provisions would be slightly below the center of the guidance.

Cassiano Scarpelli: Renato, it is a pleasure to talk to you again, thank you for joining us. Andre, I think you can start. Well, thank you, Renato and Marcelo. Our step-by-step commitment of increasing net income every quarter implies that by the end of 2026, our net income that is implicit in the guidance from the midpoint to the top. That is what I said, that is from mid to upwards, aligned with step-by-step commitment of profitability increase. Our guidance consists of five lines, we are very confident that we will deliver all five lines within the intervals of the guidance. Every line in its proper place. We just said that insurance should be from the center upwards, services close to the top, expenses closer to the floor of the guidance. NII net of provisions would be slightly below the center of the guidance.

Some issues related to provisioning, I would just like to reconciliate all of these aspects that are probably putting some pressure on your risk. Adjusted margin.

Yeah.

It's a pleasure to talk to you again and and thank you for joining us.

And I think you can start. Well, thank you. Thank you, and Marcelo.

André Carvalho: In fact, this reconciliation is not done line by line, but it has to be thought in terms of net income. Yeah, Renato, I think we are delivering strong traction, not only in the NII, which also carries with it liability NII, market NII, but we will look at these revenue lines from fee and commissions income growing within the guidance. The same thing goes for the insurance line, and expenses are under control, as mentioned by Cassiano. This leads to better results. Everything is within plan, step by step, without doing anything crazy and just plan. Thank you. Thank you. The next question comes from Tito Labarta from Goldman Sachs. Tito, please.

Cassiano Scarpelli: In fact, this reconciliation is not done line by line, but it has to be thought in terms of net income.

Our step-by-step commitment of increasing, net income, every quarter implies that, by the end of 2026, our net income is implicit, in the guidance, from the point to the top. And that's what I, what I said that is from mid to upwards aligned with step by step commitment of, you know, profitability increase, our guidance consists of 5 lines, and we are very confident that we will deliver all 5 Lines within the intervals of the guidance every line in its proper place. We just said that insurance should be from the center upward Services. Close to the top every line. I mean, expenses closer to the floor of the guidance and knee net. A Provisions would be slightly below the center of the guidance.

Marcelo Noronha: Yeah, Renato, I think we are delivering strong traction, not only in the NII, which also carries with it liability NII, market NII, but we will look at these revenue lines from fee and commissions income growing within the guidance. The same thing goes for the insurance line, and expenses are under control, as mentioned by Cassiano. This leads to better results. Everything is within plan, step by step, without doing anything crazy and just plan. Thank you.

In fact, this reconciliation is not done line by line, but it has to be thought in terms of net income.

Yeah. Melanie I think we are.

delivering strong traction, but not only that,

in the knee.

which also,

Carries with it, you know, liability and AI market and AI but we will look at this Revenue lines from fee and commissions income growing within the guidance. The same thing goes for the insurance line and expenses around the control as mentioned by

and this leads to better results. But everything is within plans, step by step without, you know, doing anything crazy and just

André Carvalho: Thank you. The next question comes from Tito Labarta from Goldman Sachs. Tito, please.

Plan, thank you.

Tito Labarta: Great. Thank you, Andre. Hi, Noronha, Cassiano. Thank you for the call and taking my question. Just a follow-up on the loan growth, I guess two specific lines. On the corporate side, rural loans jumped 20% in the quarter. I know you show in slide five there that your market share is much lower and your NPLs have actually improved over the last year, but larger peers that have much larger exposure are suffering quite a bit in that segment. Just to understand why you feel comfortable growing there. Also, on the individual side, vehicles, you're also showing you're gaining your fair share. That's also a segment where some of your peers are pulling back a little bit. We've seen some asset quality issues over the last year there as well. Just to understand why you're feeling comfortable to grow in those two lines. Thank you.

Tito Labarta: Great. Thank you, Andre. Hi, Noronha, Cassiano. Thank you for the call and taking my question. Just a follow-up on the loan growth, I guess two specific lines. On the corporate side, rural loans jumped 20% in the quarter. I know you show in slide five there that your market share is much lower and your NPLs have actually improved over the last year, but larger peers that have much larger exposure are suffering quite a bit in that segment. Just to understand why you feel comfortable growing there. Also, on the individual side, vehicles, you're also showing you're gaining your fair share. That's also a segment where some of your peers are pulling back a little bit. We've seen some asset quality issues over the last year there as well. Just to understand why you're feeling comfortable to grow in those two lines. Thank you.

Next question comes from title labart. From Goldman Sachs title please.

Great. Thank you. Andre uh Honea Casiano thank you for the call and taking my question, just to follow up uh on the loan girls, I guess, 2 specific uh lines on, on the corporate side, rural loans, right? Jump 20% in the quarter. I know you show in slide 5, there that your market share is much lower and your npls have actually improved over the last year. But you know, larger peers that you have much larger exposure are suffering quite a bit in that segment. Just to understand why you feel comfortable growing there also on the individual side Vehicles. You also showing you're kind of gaining your fair share, but it's also a segment where some of your peers are pulling back a little bit, we've seen some massive quality

issues over the last.

Marcelo de Araújo Noronha: Okay. Tito, good to see you again. Thank you. Thanks for coming. Let me see. First of all, in corporate, in wholesale bank, we did some deals that were very important, especially for M&A in rural credit with triple A clients, double A. I mentioned two operations of BRL 6 billion adding them up. One of them with good guarantees with a triple A client, that naturally did an important acquisition to complement their business. It was complemented in a period of a valley. If they have more leverage in agribusiness, they sell, they remove the leverage, and they continue with their business on one side. On the other side, a lot of liquidity in the guarantee. We work looking at the quality of the clients. If you look at our whole release, throughout these quarters, we have deconcentrating the portfolios of the bank.

Marcelo Noronha: Okay. Tito, good to see you again. Thank you. Thanks for coming. Let me see. First of all, in corporate, in wholesale bank, we did some deals that were very important, especially for M&A in rural credit with triple A clients, double A. I mentioned two operations of BRL 6 billion adding them up. One of them with good guarantees with a triple A client, that naturally did an important acquisition to complement their business. It was complemented in a period of a valley. If they have more leverage in agribusiness, they sell, they remove the leverage, and they continue with their business on one side. On the other side, a lot of liquidity in the guarantee. We work looking at the quality of the clients. If you look at our whole release, throughout these quarters, we have deconcentrating the portfolios of the bank.

Few years as well. So just to understand why why you're feeling comfortable to grow in those 2 lines. Thank you.

Okay. Uh Tito. Good to see you again. Thank you. Thank for coming.

Uh, let me see.

First of all, uh, incorporate, um, Wholesale Bank and Jose Bank.

We did some deals that were very important, especially for m&a.

In rural.

Marcelo de Araújo Noronha: There was a slight deviation in the last quarter, which was above, but very ad hoc in terms of risk appetite. If you get the 10 top ones, it continues to drop. We are deconcentrating the portfolio, looking for good ratings and good guarantees in the wholesale bank, too. In agribusiness. They are very good clients in areas and sectors that are very well known by us. That's why we feel comfortable because these are specific approvals. In terms of vehicles, that's what we mentioned last year. I mentioned this, I think it was in the Q3 release. We would start to grow in vehicles. That's another lever for us in time within the risk-adjusted return. I'm going to divide that into four quadrants. Light, new vehicles, light used vehicles, heavy vehicles, and motorcycles. Motorcycles, our risk appetite is low. We participate by choosing ratings.

Marcelo Noronha: There was a slight deviation in the last quarter, which was above, but very ad hoc in terms of risk appetite. If you get the 10 top ones, it continues to drop. We are deconcentrating the portfolio, looking for good ratings and good guarantees in the wholesale bank, too. In agribusiness. They are very good clients in areas and sectors that are very well known by us. That's why we feel comfortable because these are specific approvals. In terms of vehicles, that's what we mentioned last year. I mentioned this, I think it was in the Q3 release. We would start to grow in vehicles. That's another lever for us in time within the risk-adjusted return. I'm going to divide that into four quadrants. Light, new vehicles, light used vehicles, heavy vehicles, and motorcycles. Motorcycles, our risk appetite is low. We participate by choosing ratings.

Credit with AAA clients AAA. I mentioned to to operations of 6 billion, VLS heading the map, 1 of them with good, guarantees with the AAA client but naturally did an important acquisition to complement their business. So this complemented in a period of a valley and its, if there have more leverage in angry business, they sell, they remove the leverage and they continue with their business on 1 side. And on the other side, very, uh, a lot of liquidity in the guarantee. So we work looking at the quality of the clients, and if you look at our whole release throughout these quarters, we have D concentrating, the portfolios of the bank. There was a deviation, a slight deviation in the last quarter, which was above which, but very

ad hoc in terms of risk appetite, but if you get the 10, top ones, it continues to drop. So we are decent concentrating. The portfolio looking for good ratings and good guarantees in the wholesale Bank, too.

Marcelo de Araújo Noronha: In heavy vehicles, we are the leaders, and it depends a lot on the type of line and also on the risk-adjusted return, because here the NII is lower. It's important to have an RAR adjusted to the client. In terms of light and new vehicles, the risk-adjusted return is lower. We are not the leaders in the market. We do participate in it. We have good agreements, especially looking at our account holder clients. They have a better relationship with us. With the semi-new vehicles, because if you're talking about a vehicle that is 5, 6 years old or one that is 20 years old, we don't operate at that. Here we made a very deep diagnosis of the market. We analyzed the risk, and we worked with the modeling the whole time, and we analyzed how the market was operating.

Marcelo Noronha: In heavy vehicles, we are the leaders, and it depends a lot on the type of line and also on the risk-adjusted return, because here the NII is lower. It's important to have an RAR adjusted to the client. In terms of light and new vehicles, the risk-adjusted return is lower. We are not the leaders in the market. We do participate in it. We have good agreements, especially looking at our account holder clients. They have a better relationship with us. With the semi-new vehicles, because if you're talking about a vehicle that is 5, 6 years old or one that is 20 years old, we don't operate at that. Here we made a very deep diagnosis of the market. We analyzed the risk, and we worked with the modeling the whole time, and we analyzed how the market was operating.

No, no agree business in agree business. They are very good clients in areas and sectors, that are very well known by. Uh, so that's why we feel comfortable because these are specific approvals in terms of vehicles. That's what we mentioned last year, I mentioned this, I think it was in the third quarter release. We would start to grow in vehicles that another lever for us in time, within the risk, adjusted return. And I'm I'm going to divide that into 4 quadrants light, no vehicles like, uh, light, used vehicles, heavy vehicles, and motorcycles motorcycles. Our risk. Appetite is low. We participate by choosing ratings in heavy Vehicles. We are the leaders.

And it depends a lot on the type of line, and also on the risk adjusted return because here, the knee is lower.

Marcelo de Araújo Noronha: Specifically, two players were doing very good work with their clients. We changed our platform, giving a new experience to clients, to dealers. We had machine learning behind that for the modeling of pricing, and also with AI and GenAI, risk and credit modeling, and also policies. The policies define if you're going to accept a higher or lower risk depending on the time period of a vehicle, which is also a guarantee for us. We saw an opportunity of having an NII. We saw that the opportunity as an indicator could be smaller than that of the FGI and FGO, but it is healthy. We saw an opportunity for growth at a specific market, at specific ratings. We're not present in the market as a whole, and we are very confident in relation to what we've been doing.

Marcelo Noronha: Specifically, two players were doing very good work with their clients. We changed our platform, giving a new experience to clients, to dealers. We had machine learning behind that for the modeling of pricing, and also with AI and GenAI, risk and credit modeling, and also policies. The policies define if you're going to accept a higher or lower risk depending on the time period of a vehicle, which is also a guarantee for us. We saw an opportunity of having an NII. We saw that the opportunity as an indicator could be smaller than that of the FGI and FGO, but it is healthy. We saw an opportunity for growth at a specific market, at specific ratings. We're not present in the market as a whole, and we are very confident in relation to what we've been doing.

Because it, it's important to have an RA r, a r adjusted to the client, in terms of light and new vehicles. The risk adjusted return is lower, so we are not the leaders in the market. We do participate in it. We have good agreement, especially, looking at our account holders clients. We have, they have a better relationship with us but with a semi new vehicles. Because if you're talking about a vehicle that is 5 6 years old, or a 1, that is 20 years old, we don't operate at that. And so here we made a very deep diagnosis of the market. We analyze the risk and we work with the modeling the whole time and we analyzed how the market was operating. Specifically, 2 players were doing very good work with their clients so we changed our platform.

I'm giving a new experience to clients to dealers. We had machine learning behind that for the modeling of pricing and also with AI and gen AI.

Marcelo de Araújo Noronha: Tito, I don't know if my colleagues would like to add anything to it, but thank you so much for your question. It's great to see you. Also in the insurance cross-selling. Andre remembered that very well. I also mentioned about the cross-sell. The cross-selling we've been doing, and this example is the best one actually, because it is embedded in the client's experience. What happened was we produced in the loan insurance and the vehicle, the same thing that we produced this semester as we produced last year for these channels, for these kinds of clients. That's something else that brings profitability and growth for us in this market. Thank you so much for your participation. Once again, it's great to see you. We end the Q&A sessions. Those questions that were not answered will be answered by the IR team by email.

Marcelo Noronha: Tito, I don't know if my colleagues would like to add anything to it, but thank you so much for your question. It's great to see you. Also in the insurance cross-selling. Andre remembered that very well. I also mentioned about the cross-sell. The cross-selling we've been doing, and this example is the best one actually, because it is embedded in the client's experience. What happened was we produced in the loan insurance and the vehicle, the same thing that we produced this semester as we produced last year for these channels, for these kinds of clients. That's something else that brings profitability and growth for us in this market.

Risk and credit modeling and also policies. The policies Define, if you're going to accept a higher or lower risk depending on the time period of a vehicle, which is also a guarantee for us and we saw an opportunity of having uh, knee. And we saw that the opportunity as an indicator could be smaller than that of the fgi and FG but it is healthy. So we saw an opportunity for growth at a specific Market at specific ratings. We are not present in the market as a whole, the whole market and we are very confident in relation to what we've been doing Tito. I don't know if my colleagues would like to add anything to it, but thank you so much for your question. It's great to see you. And also in the insurance cross selling and remember that very well. I also mentioned about the cross, sell the cross selling. We've been doing

André Carvalho: Thank you so much for your participation. Once again, it's great to see you. We end the Q&A sessions. Those questions that were not answered will be answered by the IR team by email. Before giving the floor to Marcelo, I would like to remind you that the material for the release is available on the IR website, and we are available to answer any questions you might have.

Kind of clients. So that's something else that brings profitability and growth for us in this market. Thank you so much for your participation. Once again, it's great to see you.

Marcelo de Araújo Noronha: Before giving the floor to Marcelo, I would like to remind you that the material for the release is available on the IR website, and we are available to answer any questions you might have. Thank you, Andre. Thank you, Cassiano. I would like to thank you, especially those of you who had the patience of listening to us and all of these explanations. I would like to thank our colleagues from the sell side for their questions, for your participation, and all our investors who are listening to us, our employees who are also following the earnings release. I would like to say that we are very confident in what we have been delivering on everything we have been doing, including in the insurance group. Here we are together with Ney and Marinelli.

Marcelo Noronha: Thank you, Andre. Thank you, Cassiano. I would like to thank you, especially those of you who had the patience of listening to us and all of these explanations. I would like to thank our colleagues from the sell side for their questions, for your participation, and all our investors who are listening to us, our employees who are also following the earnings release. I would like to say that we are very confident in what we have been delivering on everything we have been doing, including in the insurance group. Here we are together with Ney and Marinelli.

So we end the Q&A sessions. Those questions that were not answered, will be answered by the IR team by email before giving the floor to Marcelo. I would like to remind you that the materials for the release is available on the IR website and we are available to answer any questions. You might have. Thank you Andrea. Thank you, castillano.

Marcelo de Araújo Noronha: As André said at the beginning, Marinelli released results recently, I would like to emphasize something that he said of high level of return at Bradesco Saúde, great synergy in the distribution of SME in Bradesco Saúde. I also talked about vehicle insurance. Ney reminded us in the press conference, I continue confident in all the subsidiaries and affiliates and everything that we've been doing. What I want to say is, I want to just convey a feeling I have. We are very transparent, not judging anything. On 20 February, if I'm not mistaken, our market cap was of BRL 240 billion, with Bradesco Saúde net equity at BRL 14 billion. The remaining part of the bank, because this is a conglomerate, that's why I'm talking about so many revenue lines in different ways.

Marcelo Noronha: As André said at the beginning, Marinelli released results recently, I would like to emphasize something that he said of high level of return at Bradesco Saúde, great synergy in the distribution of SME in Bradesco Saúde. I also talked about vehicle insurance. Ney reminded us in the press conference, I continue confident in all the subsidiaries and affiliates and everything that we've been doing. What I want to say is, I want to just convey a feeling I have. We are very transparent, not judging anything. On 20 February, if I'm not mistaken, our market cap was of BRL 240 billion, with Bradesco Saúde net equity at BRL 14 billion. The remaining part of the bank, because this is a conglomerate, that's why I'm talking about so many revenue lines in different ways.

I would like to thank you. Specially those of you who had the patience of listening to us and all of these explanations. I would like to thank our colleagues from the sell side, for their questions participation and all our investors who are listening to us our employees who are also following the earnings release. I would like to say that we are very confident on what we have, been delivering on everything. We have been doing, including in the insurance group. Here we are together with Nei and Marinelli. As Andre said at the beginning, Marinelli released results from recently and I would like to emphasize something that he said of high level of return at bred,

with a great Synergy in the distribution of SME, in Brad, Saudi

And I also talked about vehicle insurance, they reminded Us in the press conference and I I'm I continue confident in all the subsidiaries and Affiliates and all everything that we've been doing. What I want to say is I want to just convey a feeling I have. No we are very transparent, not judging anything.

On.

February the 20th. If I'm not mistaken, our market cap was of 240 billion RI with Brad, Saudi

Marcelo de Araújo Noronha: Most part of the insurance group, which is the largest in Latin America, within these BRL 200 billion remaining, these payment companies here and the other participations that we have within our organization here that have a value of BRL 200 billion. The market is worse. We have the war problem. If we do a calculation, right? This comes from where I'm from, this expression. If we make a math calculation, we unleash the value of Bradesco Saúde that has been showing resilience and the results and equivalence of hospitals that were mentioned. It's a great business. It has shown growing results, it will be like this from now on. When we look at that, we listed the capital of this company, unleashed a value of BRL 42 billion, we have a market cap approximately BRL 182 billion, just to make our thinking easier.

Marcelo Noronha: Most part of the insurance group, which is the largest in Latin America, within these BRL 200 billion remaining, these payment companies here and the other participations that we have within our organization here that have a value of BRL 200 billion. The market is worse. We have the war problem. If we do a calculation, right? This comes from where I'm from, this expression. If we make a math calculation, we unleash the value of Bradesco Saúde that has been showing resilience and the results and equivalence of hospitals that were mentioned. It's a great business. It has shown growing results, it will be like this from now on. When we look at that, we listed the capital of this company, unleashed a value of BRL 42 billion, we have a market cap approximately BRL 182 billion, just to make our thinking easier.

net Equity at 14 billion. So the remaining part of the bank because this is a conglomerate, that's why I'm talking about so many Revenue lines in different ways, but most part of the insurance group which is the largest in Latin America. Within These 200 billion, remaining these uh payment companies here and the other participations that we have within our organization here, that have a value of 200 billion. The market is worse, we have the war problem, but if we do a calculation, right? This coming from where I am from this expression. But if we make a map calculate

Marcelo de Araújo Noronha: All the rest is worth BRL 140 billion, the remaining part. That was BRL 200, it's BRL 140. The market dropped. There's no illusion. When we list a company it is below the bank, it could be from another industry. You're still being traded by the same multiples, I think the discount is good. I have great confidence in everything that we've been delivering in the future of our organization. That's just a provocation for all of you. Thank you once again. Thank you all our colleagues who joined us. See you next time, we're always available to talk to any one of you and to every one of you. Thank you.

Marcelo Noronha: All the rest is worth BRL 140 billion, the remaining part. That was BRL 200, it's BRL 140. The market dropped. There's no illusion. When we list a company it is below the bank, it could be from another industry. You're still being traded by the same multiples, I think the discount is good. I have great confidence in everything that we've been delivering in the future of our organization. That's just a provocation for all of you. Thank you once again. Thank you all our colleagues who joined us. See you next time, we're always available to talk to any one of you and to every one of you. Thank you.

We unleashed the value of Brad, Saudi that has been showing resilience and the result, an equivalent of hospitals that were mentioned. It's a great business, it has shown growing results and it will be like this from now on. And when we look at that, he listed the capital of this company, unleashed the value of 42 billion and we have a market cap, approximately 182 billion. Just to make our thinking easier and all the rest is worth 140 billion. The remaining part that was 200, is 140 the market dropped, There's No Illusion. When we list the company and it is below the bank, it could be from another industry. You're still being traded by the same multiples, but I think the discount is good. So I have great confidence in everything that we've been delivering, and in the future of our organization. That's just a provocation for all of you. Thank you once again.

Thank you all our colleagues who joined us. See you next time and we are always available to talk to anyone of you and to every 1 of you, thank you.

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