The Brazilian Private Banking Paradox: Growing Profits and the Contraction of the Physical Branch Network (2014-2025) (Derecho y cambio social.)

Summary

• In 2024, private banks closed 856 physical branch units across Brazil.p.3
• The three largest private banks (Itaú Unibanco, Bradesco, and Santander) accumulated R$ 74,8 bilhões in profits in 2024, up 31% from the previous year.p.4
• According to FEBRABAN data from 2023, over 70% of bank transactions occurred through digital channels.p.6
• Itaú Unibanco increased its net profit by 93,2% between 2014 and 2024 while reducing its branch network by 30,7% (-1.196 branches).p.12
• Bradesco closed 2.123 branches (-45,6%) and eliminated 16.467 employee positions (-16,4%) between 2014 and 2024.p.12
• The three largest private banks accounted for 65,5% of all bank branch closures in Brazil between 2014 and 2024.p.14
• The number of Brazilian municipalities without a single physical bank branch rose to 2.257, representing 40,5% of all municipalities in 2024.p.15

Key insights

1. Santander expanded its net profit by +133,9% while increasing its total employee headcount by +11,0% (+5.470 staff) between 2014 and 2024.p.12
2. Bank investments in technology reached R$ 47 bilhões in 2024, focusing heavily on artificial intelligence and process automation.p.13
3. Digital transactions grew from 42 % of total bank transactions in 2014 to 75 % in 2024.p.15
4. The total population living in banking deserts increased from 16,1 milhões in 2014 to 17,9 milhões in 2024.p.16
5. Bradesco S.A. ranked second among top labor litigants in the Superior Labor Court in 2025 with 5.418 processes.p.17