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Banco Bradesco (BBD)
NYSE:BBD
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Banco Bradesco SA (BBD) AI Stock Analysis

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BBD

Banco Bradesco SA

(NYSE:BBD)

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Neutral 56 (OpenAI - 5.2)
Rating:56Neutral
Price Target:
$3.50
â–Ľ(-2.78% Downside)
Action:Reiterated
Date:08/10/26
The score is held back primarily by weak recent cash flow and higher leverage on the balance sheet, despite improving profitability and revenue momentum. Valuation is a clear positive (low P/E and high dividend yield), and the earnings call tone/guidance was constructive with capital strengthening plans. Technicals remain bearish with the stock below major moving averages, limiting near-term momentum.
Positive Factors
Diversified revenue mix
Bradesco generates income from NII, resilient fee streams and sizable insurance results, which broadens earnings drivers and reduces reliance on single cycles. This multi-product mix supports revenue stability and buffers margins across interest rate or credit cycles over the coming months.
Negative Factors
Weak cash generation
Deeply negative operating and free cash flows over recent trailing periods indicate weak cash conversion despite accounting profits. Persistently poor cash generation can constrain dividend capacity, limit reinvestment, and force reliance on external funding, increasing medium‑term liquidity and funding risks.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue mix
Bradesco generates income from NII, resilient fee streams and sizable insurance results, which broadens earnings drivers and reduces reliance on single cycles. This multi-product mix supports revenue stability and buffers margins across interest rate or credit cycles over the coming months.
Read all positive factors

Banco Bradesco SA (BBD) vs. SPDR S&P 500 ETF (SPY)

Banco Bradesco SA Business Overview & Revenue Model

Company Description
Banco Bradesco S.A., along with its affiliated entities, functions as a prominent financial institution delivering a broad spectrum of banking and financial services. These offerings cater to individual clients, corporate organizations, and variou...
How the Company Makes Money
Bradesco generates earnings primarily from a mix of interest-based income and fee-based financial services, complemented by insurance-related results and other financial income. 1) Net interest income (spread business): A core driver is earning i...

Banco Bradesco SA Earnings Call Summary

Earnings Call Date:Aug 05, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presented multiple clear strengths: robust net income and ROAE that beat expectations, double‑digit revenue and loan growth concentrated in secured/guaranteed lines, market leadership in government‑guaranteed origination and aviation leasing, resilient insurance results, improved NII (including a surprising market NII contribution), ongoing digital/AI progress, and a planned BRL 10 billion capital raise to strengthen tangible capital. Offsetting these positives are timing and provisioning pressures tied to origination peaks (FGI/FGO guarantee claim periods), a few wholesale idiosyncratic delinquency events (e.g., John Deere Bank‑related movements), legacy credit card delinquencies, modest fee pressure in current accounts and investor questions on the capital recognition timeline. Management framed most credit and provisioning pressures as temporary and linked to production timing, while emphasizing portfolio quality and risk discipline. On balance, highlights materially outweigh the lowlights, with management confidence in revenue diversification, capital strengthening and continued controlled growth.
Positive Updates
Strong Net Income and ROAE Beat
Net income of BRL 7.1 billion in Q2 2026, up 16.2% year‑on‑year and 3.5% quarter‑on‑quarter; ROAE of 16.2%, above market expectations.
Negative Updates
Higher Cost of Risk and Provisioning Pressures
Cost of risk increased in absolute terms and remained a material item (management noted cost of risk at ~3.5% proportionally); pressure driven by FGI/FGO guarantee claim timing and portfolio growth requiring higher provisions as production peaks mature.
Read all updates
Q2-2026 Updates
Negative
Strong Net Income and ROAE Beat
Net income of BRL 7.1 billion in Q2 2026, up 16.2% year‑on‑year and 3.5% quarter‑on‑quarter; ROAE of 16.2%, above market expectations.
Read all positive updates
Company Guidance
The management reiterated that it expects to deliver the full-year guidance around the midpoint-to-top of the ranges, driven by continued double-digit revenue growth (total revenue BRL 37.6bn, +10.3% YoY) and step‑by‑step net income improvement; key guideposts include a roughly flat NIM near 9% (9.1% in Q1 and Q2), NII net of provisions slightly below the center of guidance, fee & commission resilience (BRL 10.5bn) and insurance growth targeted at 6–8% (management expects to finish near the midpoint despite a strong H1 +14%/H1 CAGR), while operating expenses are being managed toward the floor of the guidance (opex +3.4% YoY). On credit metrics they flagged a temporary FGI/FGO provisioning timing effect (FGI/FGO origination +64.5% YoY retail/SME, +52.7% QoQ origination), cost of risk broadly stable at ~3.5% (client NII net of provisions ~4.5%), over‑90 NPL broadly flat (+10 bps) with Stage‑3 up ~10 bps and Stage‑2 ~+0.6 pts in pockets, and continued focus on secured, higher RAR lines (loan book +11.6% YoY to BRL 1.137bn, SME growth BRL 37bn). Capital guidance includes a BRL 10bn raise (BRL 8bn anchored) and recognition from the Bradsaúde transaction (~140bps pending), positioning common equity/tier ratios comfortably above current levels (management cited targets in the c.13–15% area for CET1/Tier‑1).

Banco Bradesco SA Financial Statement Overview

Summary
Income statement momentum is a positive (TTM revenue up ~301% and positive net margin ~7.3%), but the balance sheet shows elevated and worsening leverage (debt-to-equity ~4.45x). Cash flow is the largest drag with deeply negative TTM operating and free cash flow (about -115B and -124B), signaling weak cash conversion and higher volatility.
Income Statement
64
Positive
Balance Sheet
48
Neutral
Cash Flow
34
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue341.33B311.66B249.61B254.71B239.65B157.55B
Gross Profit93.45B89.14B78.69B68.16B82.50B93.07B
EBITDA32.98B28.09B23.63B16.73B30.28B38.63B
Net Income24.32B23.67B17.25B14.25B21.22B23.17B
Balance Sheet
Total Assets2.47T2.33T2.07T1.93T1.79T1.68T
Cash, Cash Equivalents and Short-Term Investments271.85B254.98B476.88B522.98B367.61B394.23B
Total Debt805.19B793.84B689.53B631.89B571.92B238.94B
Total Liabilities2.29T2.15T1.90T1.76T1.63T1.53T
Stockholders Equity181.28B178.42B168.41B166.33B159.53B149.78B
Cash Flow
Free Cash Flow112.70B258.03B-93.62B-9.32B40.36B-106.41B
Operating Cash Flow119.07B263.05B-91.33B-177.63M49.77B-102.00B
Investing Cash Flow-268.22B-437.05B-5.01B83.61B-17.78B-19.31B
Financing Cash Flow153.25B161.17B117.88B-23.06B21.92B-1.61B

Banco Bradesco SA Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.60
Price Trends
50DMA
3.45
Negative
100DMA
3.56
Negative
200DMA
3.55
Negative
Market Momentum
MACD
-0.09
Positive
RSI
27.12
Positive
STOCH
4.69
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBD, the sentiment is Negative. The current price of 3.6 is above the 20-day moving average (MA) of 3.48, above the 50-day MA of 3.45, and above the 200-day MA of 3.55, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 27.12 is Positive, neither overbought nor oversold. The STOCH value of 4.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BBD.

Banco Bradesco SA Risk Analysis

Banco Bradesco SA disclosed 42 risk factors in its most recent earnings report. Banco Bradesco SA 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 SA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$24.68B9.3119.85%2.97%9.35%19.46%
72
Outperform
$16.22B13.4022.63%4.43%-3.09%2.72%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
67
Neutral
$20.54B15.4121.49%5.37%3.94%3.40%
62
Neutral
$21.42B30.5411.81%5.10%20.73%27.11%
60
Neutral
$5.43B21.297.28%5.47%6.98%6551.65%
56
Neutral
$33.41B7.3213.60%7.75%32.37%27.68%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BBD
Banco Bradesco SA
3.14
0.34
12.18%
BCH
Banco De Chile
40.69
12.48
44.22%
BMA
Banco Macro SA
77.61
12.81
19.78%
BSBR
Banco Santander Brasil
5.77
1.03
21.76%
BSAC
Banco Santander Chile
34.55
11.19
47.90%
CIB
Grupo Cibest
96.37
48.51
101.35%

Banco Bradesco SA Corporate Events

Banco Bradesco Reports 1H26 Results and Advances AI-Driven Transformation
Aug 6, 2026
Banco Bradesco S.A. reported its consolidated financial statements for the first half of 2026 under IFRS, highlighting a Brazilian economy that grew modestly and remained under restrictive monetary policy, with the Selic rate ending the semester a...
Banco Bradesco Extends Profit Growth Streak with Strong 2Q26 Results and Loan Expansion
Aug 6, 2026
Banco Bradesco reported that in the second quarter of 2026 its recurring net income reached R$7.1 billion, up 16.2% year on year and marking a tenth consecutive quarter of improvement, supported by resilient revenues of R$37.6 billion and controll...
Banco Bradesco Files August 2026 Form 6-K as Foreign Private Issuer
Aug 6, 2026
In August 2026, Banco Bradesco S.A., a Brazilian foreign private issuer, filed a Form 6-K with the U.S. Securities and Exchange Commission for that month, confirming it reports under Form 20-F and does not rely on Rule 12g3-2(b) for disclosure. Th...
Banco Bradesco Launches Up to R$10 Billion Capital Increase with Rights Offering
Jul 30, 2026
On July 29, 2026, Banco Bradesco S.A.’s board approved a share capital increase of up to R$10 billion through the private subscription of 302.9 million new common shares and 302.0 million new preferred shares, all within the authorized capit...
Bradesco Launches BRL 10 Billion Capital Increase to Fund Strategic Investments
Jul 30, 2026
On July 29, 2026, Bradesco’s Board of Directors approved a capital increase of up to BRL 10 billion via private subscription of new common and preferred shares, with a minimum subscription threshold of BRL 8 billion. The offering, priced at ...
Banco Bradesco Discloses Minimal Insider Share Activity for June 2026
Jul 13, 2026
Banco Bradesco reported to the U.S. Securities and Exchange Commission that, for June 2026, its controlling shareholder group and family dependants made no trades in Banco Bradesco securities or derivatives, with their holdings in common and non-v...
Banco Bradesco Approves R$3.5 Billion Interim Interest on Shareholders’ Equity
Jun 24, 2026
On June 23, 2026, Banco Bradesco’s board of directors approved the executive officers’ proposal to pay R$3.5 billion in interim interest on shareholders’ equity, equivalent to R$0.315359035 per common share and R$0.346894939 per ...
Banco Bradesco Details May 2026 Insider Holdings and Board Changes
Jun 11, 2026
In a June 2026 filing, Banco Bradesco reported that its controlling shareholder group and dependent family members made no trades in securities or derivatives of the bank during May 2026, with their holdings in common and non-voting shares remaini...
Banco Bradesco Files Comprehensive May 2026 Form 6-K With Expanded Risk, Governance and ESG Disclosures
May 29, 2026
Banco Bradesco S.A. has filed a Form 6-K for May 2026 with the U.S. Securities and Exchange Commission, providing an extensive reference document that consolidates information on its history, operating segments, products and services, client conce...
Banco Bradesco Reports No Insider Trading Activity in April 2026
May 13, 2026
In a Form 6-K filing for May 2026, Banco Bradesco reported that in April 2026 there were no transactions in securities or derivatives by its controlling shareholder group and their dependent family members, and that their holdings of common and no...
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.Date of analysis: Aug 10, 2026