Company Reports

Banco Bradesco is seeking to complete its recovery from a period of weak performance. Credit costs rose industrywide in 2023, but the bank was a notable underperformer relative to its peers, with its more than 90-day nonperforming loan ratio reaching a peak of 5.7% in June 2023. High credit costs combined with poor loan growth and net interest margin compression led to a dramatic decrease in earnings. Banco Bradesco's results have been recovering since then, but the bank will need to prove that its operational issues have been solved before our confidence in the firm is restored.

Banco Bradesco reported strong second-quarter earnings, with net revenue increasing 10.3% year over year to BRL 37.6 billion, while net income rose 16.2% to BRL 7.1 billion. These results translate into a return on average equity of 16.2%, up from 14.6% last year.

Banco Bradesco reported a strong start to 2026, with recurring net income rising 16.1% to BRL 6.8 billion in the first quarter. These results translate into a return on average equity of 15.8%, up from 14.4% last year and above the bank's cost of equity.

Banco Bradesco is seeking to complete its recovery from a period of weak performance. Credit costs rose industrywide in 2023, but the bank was a notable underperformer relative to its peers, with its more than 90-day nonperforming loan ratio reaching a peak of 5.7% in June 2023. High credit costs combined with poor loan growth and net interest margin compression led to a dramatic decrease in earnings. Banco Bradesco's results have been recovering since then, but the bank will need to prove that its operational issues have been solved before our confidence in the firm is restored.

Banco Bradesco reported solid fourth-quarter results as loan growth continues to drive overall growth. Net revenue increased 9.8% from last year to BRL 36.1 billion, while net income rose 20.6% to BRL 6.5 billion.

Banco Bradesco is seeking to complete its recovery from a period of weak performance. Credit costs rose industrywide in 2023, but the bank was a notable underperformer relative to its peers, with its more than 90-day nonperforming loan ratio reaching a peak of 5.7% in June 2023. High credit costs combined with poor loan growth and net interest margin compression led to a dramatic decrease in earnings. Banco Bradesco's results have been recovering since then, but the bank will need to prove that its operational issues have been solved.

Banco Bradesco reported solid third-quarter earnings as high loan growth and net interest margin expansion more than offset higher credit costs. Net revenue increased 13.1% year over year to BRL 35 billion, while net income rose 18.8% to BRL 6.2 billion.

Banco Bradesco reported strong second-quarter earnings as the bank benefits from both high loan growth and lower credit costs. Net revenue increased 15.1% year over year to BRL 34 billion, while net income rose 28.6% to BRL 6.1 billion.

Banco Bradesco is seeking to recover from a period of weak performance. Credit costs rose industrywide in 2023, but the bank was a notable underperformer relative to its peers, with the bank's more-than 90-day nonperforming loan ratio reaching a peak of 5.7% in June 2023. While Banco Bradesco had been enjoying a period of high profitability prior to 2023, deteriorating credit conditions and contracting net interest margins put an end to that, with the bank's return on equity falling into the single digits. That said, in recent quarters, Banco Bradesco has seen signs of a recovery, as tighter underwriting has led to improving credit costs while loan growth has reaccelerated.

Banco Bradesco started 2025 strong, with first-quarter revenue increasing 15.3% from last year to BRL 32.3 billion. Modest credit costs meant that the bank's net income rose an impressive 39.3% to BRL 5.9 billion.

Banco Bradesco is seeking to recover from a period of weak performance. Credit costs rose industrywide in 2023, but the bank was a notable underperformer relative to its peers, with the bank's more-than 90-day nonperforming loan ratio reaching a peak of 5.7% in June 2023. While Banco Bradesco had been enjoying a period of high profitability prior to 2023, deteriorating credit conditions and contracting net interest margins put an end to that, with the bank's return on equity falling into the single digits. That said, in recent quarters, Banco Bradesco has seen signs of a recovery, as tighter underwriting had led to improving credit costs, but it will take time for the bank to return to its old profitability.

Banco Bradesco's recovery continued in the fourth quarter as total revenue increased 7.9% from last year to BRL 32.3 billion. The bank's bottom-line results benefited significantly from lower credit costs with net income rising 87.7% to BRL 5.4 billion.

Banco Bradesco is seeking to recover from a period of weak performance. Credit costs rose industrywide in 2023, but the bank was a notable underperformer relative to its peers, with the bank's more-than 90-day nonperforming loan ratio reaching a peak of 5.7% in June of 2023. While Banco Bradesco had been enjoying a period of high profitability prior to 2023, deteriorating credit conditions and contracting net interest margins put an end to that, with the bank's return on equity falling into the single digits. That said, in recent quarters, Banco Bradesco has seen signs of a recovery, as tighter underwriting had led to improving credit costs, but it will take time for the bank to return to its old profitability.

No-moat-rated Banco Bradesco reported improved third-quarter results as the bank benefits from good loan growth and improved credit performance, partially offset by net interest margin compression. Net revenue increased 3.5% year over year and 3.7% from last quarter to BRL 30.6 billion. Meanwhile, net income increased 13.1% from last year to BRL 5.2 billion. These results translate to a return on equity of 12.4%. Despite the increase in net income, the bank’s return on equity is still below the firm’s long-term historical average. We will maintain our $2.90 per ADR share fair value estimate for Banco Bradesco, and we see the shares as modestly undervalued at the current price.

No-moat-rated Banco Bradesco reported decent second-quarter results, as the positive trends in net interest income and credit costs raise prospects that the bank is recovering from its recent disappointing performance. Recurring net income increased 12% from last quarter and 4.4% from last year to BRL 4.7 billion. This result translates to a return on average equity of 11.4%. Despite the strong sequential increase, that is still well below the firm's long-term historical average. As we incorporate these results, we do not plan to materially alter our $2.90 per ADR share fair value estimate. We see the shares as undervalued at the current price.

We are lowering our fair value estimate for no-moat Banco Bradesco from $3.50 per ADR share to $2.90. Around $0.25 of the negative adjustment comes from foreign exchange movements since our last model update. Interest rates in Brazil are declining while interest-rate cut expectations in the US have fallen since the start of the year. This divergence in interest rate policy has placed pressure on the Brazilian real relative to the dollar.

As pandemic conditions eased, Bradesco was able to generate impressive loan growth during much of 2021 and 2022, with commercial loans and mortgages in particular leading the way. With a slew of government guarantee programs for small and midsize enterprises and fiscal stimulus spending, the bank's credit costs during the pandemic were surprisingly low. However, credit costs rose in 2023 and the bank is underperforming its peers, with the bank's more-than 90-day nonperforming loan ratio reaching 5.1% at the end of 2023. While Banco Bradesco had been enjoying a period of high profitability, deteriorating credit conditions have put an end to that, as the bank's loan loss provisions have ballooned while its net interest margin has fallen.

No-moat-rated Banco Bradesco reported weak first-quarter earnings that were in line with our expectations, as better credit results were offset by lower net interest income. The bank’s net revenue declined 3.7% from last year to BRL 28 billion. Recurring net income fell 1.6% from last year but increased 46.3% from the previous quarter to BRL 4.2 billion. This translates to a return on equity of 10.2%, which is below both historical levels and our cost of equity for the firm. As we incorporate these results, we do not plan to materially alter our $3.50 per ADR share fair value estimate. We see the shares as undervalued but caution investors that 2024 will be a transition year for the bank as it seeks to reverse its recent underperformances relative to its peers.

As pandemic conditions eased, Bradesco was able to generate impressive loan growth during much of 2021 and 2022, with commercial loans and mortgages in particular leading the way. With a slew of government guarantee programs for small and midsize enterprises and fiscal stimulus spending, the bank's credit costs during the pandemic were surprisingly low. However, credit costs rose in 2023 and the bank is underperforming its peers, with the bank's more-than 90-day nonperforming loan ratio reaching 5.1% at the end of 2023. While Banco Bradesco had been enjoying a period of high profitability, deteriorating credit conditions have put an end to that as the bank's loan loss provisions have ballooned.

No-moat-rated Banco Bradesco reported weak fourth-quarter earnings as surprisingly high credit costs led to a decline in earnings. The bank’s net revenue decreased 1.2% from last year to BRL 29.9 billion. Meanwhile, recurring net income rose 80% from last year but fell 37.7% from last quarter to BRL 2.88 billion. These results translate to a return on average equity of 6.9%, well below the firm’s historical average. Despite these weak results, our thesis for the bank remains largely unchanged, and as we incorporate these results, we do not plan to materially alter our fair value estimate of $3.70 per ADR share for Banco Bradesco. Following the market’s negative reaction to earnings, we see the shares as undervalued.