SAO PAULO, Aug 5 (Reuters) - Brazilian lender Bradesco

reported higher than expected second-quarter net

profit on Monday, driven by lower loan-loss provisions and

stronger margins.

Bradesco's recurring net profit - which excludes one-off

impacts in income - in the April-June period rose 4.4% on a

yearly basis to 4.7 billion reais ($820.55 million), it said in

a securities filing, slightly ahead of the 4.4 billion reais

forecast by analysts polled by LSEG.

During the quarter, the Osasco-based lender had to set aside

7.3 billion reais for loans that are likely to default, 29.3%

less than the figure reported a year ago and 6.7% below the

previous quarter.

Bradesco's consolidated loan book grew 5.0% year-on-year to

912.1 billion reais, boosted by loans to individuals and

medium-sized enterprises.

But net interest income, earnings on loans minus deposit

costs, was down 5.9% to 15.6 billion reais.

After a series of weak earnings pressured by rising

delinquency and higher costs, Bradesco installed a new chief

executive at the end of last year and began implementing a plan

to gradually recover its profitability.

"We continued to execute our strategic plan, the benefits of

which will partially appear in our operational results in 2024

and on a larger scale from 2025," Bradesco said in a statement.

Bradesco said it has kept its full-year outlook unchanged,

including expectations that its consolidated loan book will grow

by between 7% and 11% this year.

($1 = 5.7279 reais)