Skip to Content

Bank Bradesco SA ADR BBD

Morningstar Rating
$2.63 −0.02 (0.75%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Banco Bradesco's High Cost of Funds Is Pressuring Results, but Falling Rates Will Provide Relief

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.

Price vs Fair Value

BBD is trading at a 24% discount.
Price
$2.66
Fair Value
$9.60
Uncertainty
High
1-Star Price
$8.66
5-Star Price
$1.60
Economic Moat
Ycsr
Capital Allocation
Mzrpsmyhd

Bulls Say, Bears Say

Bulls

Bradesco's credit quality and net interest margin have materially underperformed its peers in recent years.

Bears

While inflation in Brazil has moderated, high interest rates created economic risks for the country and Bradesco.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if BBD is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$2.65
Day Range
$2.612.67
52-Week Range
$2.613.68
Bid/Ask
$2.63 / $2.64
Market Cap
$27.98 Bil
Volume/Avg
9.7 Mil / 17.4 Mil

Key Statistics

Price/Earnings (Normalized)
9.65
Price/Sales
1.44
Dividend Yield (Trailing)
4.51%
Dividend Yield (Forward)
1.73%
Total Yield
4.51%

Company Profile

Banco Bradesco is Brazil's second-largest private bank, with about 15% of deposits, and the largest insurance provider in Brazil, with roughly 20%-25% market share. The bank is majority controlled by the Bradesco foundation—a private nonprofit institution focused on education. Banking provides roughly 70% of profits, while the insurance segment contributes the remaining 30%. The bank is also a major asset manager with high-single-digit market share. In 2016, Bradesco acquired the Brazilian operations of HSBC.
Sector
Financial Services
Industry
Banks - Regional
Stock Style Box
Large Growth
Total Number of Employees
88,381

Competitors

Valuation

Metric
BBD
BSAC
SAN
Price/Earnings (Normalized)
9.6512.856.92
Price/Book Value
0.831.480.75
Price/Sales
1.443.831.23
Price/Cash Flow
2.2712.202.18
Price/Earnings
BBD
BSAC
SAN

Financial Strength

Metric
BBD
BSAC
SAN
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
BBD
BSAC
SAN
Return on Assets (Normalized)
0.73%0.83%0.69%
Return on Equity (Normalized)
8.34%13.09%13.29%
Return on Invested Capital (Normalized)
Return on Assets
BBD
BSAC
SAN
See how this stock stacks up to its competitors with Morningstar Investor

Banks - Regional Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
BNPQY
BNP Paribas ADRJfcrgskmZdm$77.1 Bil
ISNPY
Intesa Sanpaolo ADRHvpvynhblHqpp$64.7 Bil
USB
U.S. BancorpXtvndvdgxGwml$63.9 Bil
PNC
PNC Financial Services Group IncSdhxspgrkDkqwzh$58.3 Bil
ITUB
Itau Unibanco Holding SA ADRJzhhtdkmWfnr$55.8 Bil
MFG
Mizuho Financial Group Inc ADRXzndwpsLymy$48.9 Bil
TFC
Truist Financial CorpSytmrdfxPzfyhm$47.6 Bil
LYG
Lloyds Banking Group PLC ADRYnzhwbztFnwwbbb$39.2 Bil
DB
Deutsche Bank AGNfyWryj$30.6 Bil
NWG
NatWest Group PLC ADRVtvKdvj$29.2 Bil

Sponsor Center