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Banco Bradesco
(NYSE:BBDO)
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Rating:60Neutral
Price Target:
$3.50
â–²(15.89% Upside)
Action:Reiterated
Date:10/06/26
The score is primarily held back by financial risk signals—especially high leverage and a sharp TTM cash-flow deterioration—despite decent profitability. Offsetting this, valuation is attractive (low P/E and high dividend) and the technical trend is positive, while the latest earnings call was net supportive due to reaffirmed growth guidance and capital-strengthening actions, tempered by provisioning and asset-quality headwinds.
Positive Factors
Broad loan portfolio growth
Growth across SME, corporate, and individual lending shows broad customer demand rather than dependence on one segment. Continued portfolio expansion can support recurring interest income, deepen client relationships, and improve operating leverage if credit discipline remains intact.
Negative Factors
Elevated leverage
Persistently high leverage leaves less room to absorb weaker credit conditions or funding pressure and increases sensitivity to the banking cycle. Although returns remain solid, the capital structure can constrain strategic flexibility and make balance-sheet management more important over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad loan portfolio growth
Growth across SME, corporate, and individual lending shows broad customer demand rather than dependence on one segment. Continued portfolio expansion can support recurring interest income, deepen client relationships, and improve operating leverage if credit discipline remains intact.
Read all positive factors
Banco Bradesco (BBDO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.24B
Dividend Yield7.57%
Average Volume (3M)81.21K
Price to Earnings (P/E)8.1
Beta (1Y)0.43
Revenue Growth32.37%
EPS Growth27.72%
CountryUS
Employees82,095
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.26
Shares Outstanding5,606,747,000
10 Day Avg. Volume80,869
30 Day Avg. Volume81,214
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)0.93
Price to Sales (P/S)0.53
P/FCF Ratio0.64
Enterprise Value/Market Cap3.82
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit1.77
Enterprise Value/Ebitda5.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Banco Bradesco Business Overview & Revenue Model
Company Description
Banco Bradesco S.A., together with its subsidiaries, provides various banking products and services in Brazil and internationally. The company operates in two segments, Banking and Insurance. It engages in banking operations, including investment,...
How the Company Makes Money
Bradesco generates revenue primarily from a mix of interest-based income and fee-based income across its banking and insurance/asset management activities. (1) Net interest income: The bank earns interest and similar income on loans and other inte...
Banco Bradesco Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 10, 2027
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives: solid net income and ROAE, double‑digit loan portfolio growth across segments (notably SME and government‑backed origination), increasing revenues and client NII, robust insurance results, market leadership in several niches, significant digital/AI progress, and a proactive capital increase to strengthen tangible capital. Headwinds are present — chiefly timing‑related provisioning from guarantee claim periods (FGI/FGO), some asset‑quality increases tied to specific clients (John Deere Bank and one wholesale name), modest fee growth and capital markets volatility. Management framed the quality issues as largely manageable, collateralized and temporary, and emphasized risk‑adjusted returns and portfolio selectivity. On balance, the positive operational momentum and capital actions outweigh the localized asset‑quality and revenue‑mix challenges.Positive Updates
Strong Net Income and Profitability
Net income of BRL 7.1 billion in Q2 2026, up 16.2% year‑on‑year and 3.5% quarter‑on‑quarter; ROAE reported at 16.2% for the quarter (management highlighted strong quarterly profitability).
Negative Updates
Asset Quality Pressure from Guarantee Claim Timing
Provisioning pressure due to FGI/FGO guarantee claim/grace periods (120–185 days) and production peak from March–October last year, causing temporary increases in provisions and upward pressure on over‑90 NPL and cost of risk until guarantees are collected.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Net Income and Profitability
Net income of BRL 7.1 billion in Q2 2026, up 16.2% year‑on‑year and 3.5% quarter‑on‑quarter; ROAE reported at 16.2% for the quarter (management highlighted strong quarterly profitability).
Read all positive updates
Company Guidance
Management reaffirmed guidance to deliver net income growth step‑by‑step and to finish 2026 from the midpoint to the top of the guidance range, with revenues growing double‑digits (total revenue BRL 37.6bn, +10.3% YoY) and operating result +14% YoY; they expect NIM roughly flat around 9% (Q1–Q2 9.1%), NII (client + market) to remain resilient (client NII up to BRL 20.2bn, market NII ~BRL 700m), NII net of provisions slightly below the center of guidance, expenses nearer the floor, and insurance around the 6–8% guidance (H1 insurance net income BRL 2.9bn, +28.3% YoY) while continuing portfolio growth (loans +11.6% YoY to BRL 1.137bn, SME +16.1% YoY with BRL 37bn added, FGI/FGO origination +64.5% YoY and 52.7% QoQ, 21.6% market share) and disciplined credit (cost of risk ~3.5%, client NII net of provisions 4.5%, overall NPL>90 up ~10 bps, private payroll NPL ~4.7% vs market 8.9%); capital actions aim to strengthen CET1 (slides show ~11% CET1 with ~140 bp Bradsaúde recognition pending and a BRL 10bn raise that would bring CET1 to ~13.6% and Tier‑1 toward ~15.1%).Banco Bradesco Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
42
Neutral
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 341.33B | 311.66B | 249.61B | 254.71B | 239.65B | 157.55B |
| Gross Profit | 93.45B | 89.14B | 78.69B | 68.16B | 82.50B | 93.07B |
| EBITDA | 32.98B | 28.09B | 23.63B | 16.73B | 30.28B | 38.63B |
| Net Income | 24.32B | 23.67B | 17.25B | 14.25B | 21.22B | 23.17B |
Balance Sheet | ||||||
| Total Assets | 2.47T | 2.33T | 2.07T | 1.93T | 1.79T | 1.68T |
| Cash, Cash Equivalents and Short-Term Investments | 271.85B | 254.98B | 476.88B | 522.98B | 367.61B | 394.23B |
| Total Debt | 805.19B | 793.84B | 689.53B | 631.89B | 571.92B | 238.94B |
| Total Liabilities | 2.29T | 2.15T | 1.90T | 1.76T | 1.63T | 1.53T |
| Stockholders Equity | 181.28B | 178.42B | 168.41B | 166.33B | 159.53B | 149.78B |
Cash Flow | ||||||
| Free Cash Flow | 112.70B | 258.03B | -93.62B | -9.32B | 40.36B | -106.41B |
| Operating Cash Flow | 119.07B | 263.05B | -91.33B | -177.63M | 49.77B | -102.00B |
| Investing Cash Flow | -268.22B | -437.05B | -5.01B | 83.61B | -17.78B | -19.31B |
| Financing Cash Flow | 153.25B | 161.17B | 117.88B | -23.06B | 21.92B | -1.61B |
Banco Bradesco Technical Analysis
Positive
3.02
Price Trends
3.24
Positive
3.13
Positive
3.20
Positive
Market Momentum
0.14
Positive
62.26
Neutral
31.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBDO, the sentiment is Positive. The current price of 3.02 is below the 20-day moving average (MA) of 3.50, below the 50-day MA of 3.24, and below the 200-day MA of 3.20, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 62.26 is Neutral, neither overbought nor oversold. The STOCH value of 31.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBDO.
Banco Bradesco Risk Analysis
Banco Bradesco disclosed 42 risk factors in its most recent earnings report. Banco Bradesco reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Banco Bradesco Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $25.57B | 9.60 | 19.85% | 4.01% | 7.13% | -22.31% | |
72 Outperform | $15.63B | 13.86 | 22.63% | 4.49% | 7.69% | 9.88% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $20.11B | 16.16 | 21.49% | 5.52% | 3.94% | 3.40% | |
60 Neutral | $43.24B | 8.08 | 13.60% | 7.57% | 32.37% | 27.72% | |
60 Neutral | $21.05B | 28.70 | 11.81% | 2.60% | 20.73% | 27.11% | |
54 Neutral | $6.07B | 55.57 | 2.13% | 4.49% | 3.21% | -89.45% |
* Financial Sector Average
BBDO
Banco Bradesco
3.76
1.01
36.48%
BCH
Banco De Chile
39.64
7.71
24.14%
BSBR
Banco Santander Brasil
5.67
0.54
10.59%
BSAC
Banco Santander Chile
32.98
5.60
20.44%
CIB
Grupo Cibest
97.60
44.90
85.20%
GGAL
Grupo Financiero Galicia SA
36.82
3.20
9.53%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.