Banco Bradesco (BREA) AI Stock Analysis

Banco Bradesco

(Frankfurt:BREA)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Capital StrengthThe completed capital increase and stronger CET1 ratio improve Bradesco’s capacity to absorb credit losses while continuing to invest in growth, technology, and distribution. A better-capitalized balance sheet also supports regulatory resilience and gives management more flexibility to expand lending in targeted segments.

Negative Factors

Rising Credit RiskHigher non-performing loans and continued pressure on cost of risk can reduce earnings quality by requiring larger provisions and weakening the contribution of lending growth. The risk is particularly material because management expects credit conditions to remain difficult before improvement later in 2027 or 2028.

Banco Bradesco (BREA) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 27.04B
Dividend Yield: 11.96%
Average Volume (3M): 982
Price to Earnings (P/E): 5.2
Beta (1Y): 0.17
Revenue Growth: 23.04%
EPS Growth: 28.19%
Country: Germany
Employees: 82,095
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

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, na...

Banco Bradesco Earnings Call Summary

Earnings Call Date:Oct 21, 2026(Q3-2026)|% Change Since:-34.97%|Next Earnings Date:Feb 09, 2027

Earnings Call SentimentPositive

The call was broadly positive, characterized by double-digit loan and revenue growth, strong expansion in targeted secured and corporate portfolios, capital-strength improvement, resilient insurance and treasury contributions, and continued progress in digital transformation and efficiency. The main challenges were portfolio-mix pressure on NIM, higher credit costs and NPLs in specific portfolios, macroeconomic pressure, selected fee-income stagnation, and DCM market weakness. Management remained confident about fourth-quarter growth and the longer-term transformation plan.

Positive Updates

BRL 10 Billion Capital Increase Completed

Bradesco completed a capital increase of BRL 10 billion. Management said CET1 was 12.1% and Level 1 capital was 13.7%, providing a solid capital position to continue investing.

Negative Updates

NIM Pressured by Portfolio Mix

Management said the portfolio mix, particularly the growth of large corporates, pressured NIM. NIM was cited at 8.4%, while management said it would have been 9.3% with zero growth in large corporates and 9.3% to 9.4% under the prior third-quarter 2025 mix.

Company Guidance

Management said it will continue to grow NIM and that “in the fourth quarter, we'll see a higher NIM as well”; it expects “a higher” market in client NII in Q4 2026, while NII net of provisions has guidance of “BRL 42 billion-BRL 48 billion in the year,” is “in the lower range,” and has “a slightly better expectation for Q4 as regards our guidance.” Treasury is expected to be “around BRL 3 billion this year,” with “similar numbers in the fourth quarter,” and management said it is “still expecting about 40 points of efficiency” over “the next two to three years.” For FGI and FGO, management said the curve will “probably” decline “in the second quarter or in the third quarter,” while it will continue to grow its loan portfolio where it has risk appetite and “will continue to grow liability, we will grow fee and commissions.”

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

3 New Risks

1.3.D.40.03 The relative volatility and low liquidity of the Brazilian securities markets may substantially limit your ability to sell shares underlying the preferred share ADSs and common share ADSs at the price and time you desire.Q4, 2019

2.3.D.40.02 Under Brazilian Corporate Law, holders of preferred shares have limited voting rights, accordingly, holders of preferred share ADSs will have similar limitations on their ability to vote.Q4, 2019

3.3.D.40.01 The Deposit Agreements governing the preferred share ADSs and common share ADSs provide that holders of such ADSs will only receive voting instructions if we authorize the depositary bank to contact those holders to obtain voting instructions; and there are also practical limitations on any ability to vote we may give such holders.Q4, 2019

Banco Bradesco Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

DE:BREA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSAC	79Outperform	$14.49B	13.14	22.03%	4.85%	7.69%	9.88%
CIB	75Outperform	$24.00B	9.12	19.85%	4.26%	7.13%	-22.31%
BCH	71Outperform	$18.61B	15.24	21.27%	5.99%	3.94%	3.40%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BSBR	57Neutral	$16.51B	29.20	10.09%	3.35%	18.27%	16.65%
GGAL	54Neutral	$5.61B	49.52	2.13%	5.12%	3.21%	-89.45%

* Financial Sector Average

Performance Comparison

DE:BREA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:BREA	Banco Bradesco S.A.	2.12	-0.20	-8.66%
BCH	Banco De Chile	36.55	2.87	8.51%
BSBR	Banco Santander Brasil SA	4.41	-1.17	-20.90%
BSAC	Banco Santander-Chile	30.53	3.15	11.49%
CIB	Grupo Cibest S.A.	92.02	37.22	67.93%
GGAL	Grupo Financiero Galicia	32.30	-25.01	-43.64%

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.

Banco Bradesco AI Stock Analysis