Bradesco profit rises 16% as loan growth offsets higher delinquencies

Brazilian lender Banco Bradesco on Wednesday reported second-quarter recurring net profit of 7.1 billion reais ($1.39 billion), up 16.2% from a year earlier and in line with analysts' estimates.

The result marked Bradesco's tenth straight quarter of net profit growth, it said. Return on average equity (ROAE) rose to 16.2% from 14.6% a year earlier.

The loan book grew 11.6% to 1.14 trillion reais, driven by secured lending.

The over-90-day delinquency ratio edged up to 4.3% from 4.1% a year earlier, a rate that Bradesco said remained within its expectations despite a tougher credit environment. The bank also highlighted strong performance from its insurance business.

"Despite maintaining a moderate risk appetite, we continue to see strong commercial momentum," the bank said, noting growth in secured lending segments.

Brazilian peers Banco do Brasil and Nubank are due to report quarterly results next week. Itau Unibanco on Tuesday also posted a net profit in line with expectations. Santander Brasil last week missed profit estimates.