Analyst Note| Michael Miller |
No-moat rated Bank Bradesco’s reported mixed first-quarter results with recurring net income of BRL 6.5 billion, down 4.2% sequentially and up 73.6% on a year-over-year basis. These results equate to an annualized return on average equity of 18.7%. The first-quarter results were marked by sequentially lower net interest income, lower provisioning, controlled costs, and manageable asset quality. As we incorporate these results, we do not expect to materially change our fair value estimate of $3.82 per ADR share.