* Q3 profit drops more than expected to 1.811 bln reais

* Assets rise 14.9 pct from yr earlier to 485.69 bln reais

* Loan portfolio grows 10.2 pct on corporate credit

* Shares fall 1 pct after below expected earnings (Adds CEO comments, forecasts)

By Elzio Barreto

SAO PAULO, Nov 4 (Reuters) - Bradesco (BBDC4.SA: Quote, Profile, Research)(BBD.N: Quote, Profile, Research), Brazil's second-largest, private-sector bank, posted a larger-than-expected decline in third-quarter profits on Wednesday as provisions for bad debt grew, sending its shares sharply lower.

Like most banks in Brazil, Bradesco had to cope with higher defaults that have chipped away at profits the past few quarters. Still, Chief Executive Luiz Carlos Trabuco Cappi said the worst is over for the bank, which is counting on a rebound in Brazil's economy to boost loan demand and help reduce delinquencies in coming months.

"The outlook is for a very significant improvement in delinquency rates," Trabuco said in a conference call with reporters. "There are two main reasons supporting that view, the improved outlook for the labor market and the increase in personal income."

Bradesco is lengthening the terms on loans for consumers and corporate clients this week, seeking to benefit from increased demand for credit near the holiday shopping season, he added.