Banco Bradesco SA will launch a cost-cutting program in 2018 to help the bank improve profitability following a contraction in corporate credit in the fourth quarter of 2017, Diário Comércio Indústria & Serviços reported, citing the bank's executives.
The lender is hoping to lower its provisions expenses and administrative costs in order to strike a better balance in results for this year.
The planned cost-cutting measures include a continued reduction of the bank's branch network, which shrank 10.6% in 2017 as the company placed more emphasis on digital banking, as well as a voluntary retirement program that should lower its headcount.
Bradesco also expects to realize further cost savings as a result of its ongoing integration of HSBC Brasil, which it acquired in 2016.
Bradesco recently reported recurring net income of about 4.86 billion Brazilian reais for the fourth quarter of 2017, up 10.9% from a year earlier. The bank's expanded loan portfolio shrank 4.3% in the 12 months through December, with loans to companies decreasing 7.4%. It booked 4.62 billion reais in allowance for loan losses, down 16.3% compared to a year ago.
As of Feb. 1, US$1 was equivalent to 3.17 Brazilian reais.
