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Banco Bradesco Sa (BBD)
NYSE:BBD
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Banco Bradesco SA
(NYSE:BBD)
Rating:66Neutral
Price Target:
$3.00
â–²(3.45% Upside)
Banco Bradesco SA (BBD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.84B
Dividend Yield2.03%
Average Volume (3M)35.12M
Price to Earnings (P/E)8.5
Beta (1Y)0.28
Revenue Growth-4.58%
EPS Growth39.03%
CountryUS
Employees71,953
SectorFinancial
Sector Strength71
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.11
Shares Outstanding5,311,865,700
10 Day Avg. Volume40,440,843
30 Day Avg. Volume35,124,205
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap4.76
Enterprise Value/Revenue0.62
Enterprise Value/Gross Profit1.65
Enterprise Value/Ebitda10.73
Forecast
1Y Price Target
$3.00Price Target Upside3.45% Upside
Rating ConsensusHold
Number of Analyst Covering1
Banco Bradesco SA Business Overview & Revenue Model
Company DescriptionBanco Bradesco S.A., together with its subsidiaries, provides various banking products and services to individuals, corporates, and businesses in Brazil and internationally. The company operates through two segment, Banking and Insurance. It provides current, savings, click, and salary accounts; real estate credit, vehicle financing, payroll loans, mortgage loans, microcredit, leasing, and personal and installment credit; debit and business cards; financial and security services; consortium products; auto, personal accident, dental, travel, and life insurance; investment products; pension products; real estate and vehicle auctions; cash management, and foreign trade and exchange services; capitalization bonds; and internet banking services. Banco Bradesco S.A. was founded in 1943 and is headquartered in Osasco, Brazil.
How the Company Makes MoneyBanco Bradesco generates revenue primarily through interest income from loans, which constitutes a significant portion of its earnings. The bank extends credit to individuals and businesses, charging interest on these loans. Additionally, it earns income from various fees associated with banking services, such as account maintenance, transaction fees, and advisory services. The bank also generates revenue from its insurance products, asset management services, and investment banking activities. Strategic partnerships with other financial institutions, technology companies, and fintech firms enhance its service offerings and customer base, contributing to its overall earnings.
Banco Bradesco SA Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: 4.69%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in recurring net income, strong revenue and loan portfolio growth, and successful technological implementations. However, challenges such as economic slowdown impacts and issues with private payroll loans indicate areas of concern. Overall, the sentiment remains positive given the strong financial performance and strategic advancements.Q2-2025 Updates
Positive Updates
Significant Growth in Recurring Net Income
Bradesco achieved a recurring net income of BRL 6.1 billion, marking a significant 28.6% growth year-over-year with an ROAE of 14.6%, an increase of 3.2 percentage points year-on-year.
Strong Revenue Growth
Total revenue reached BRL 34 billion, up 15.1% year-on-year and 5.2% quarter-on-quarter. Notably, fee and commission income grew over 10% year-on-year and 5% quarter-on-quarter.
Insurance Segment Performance
The Insurance segment saw growth of 6.5% quarter-on-quarter and 21.7% year-on-year, contributing positively to overall performance.
Loan Portfolio Expansion
The loan portfolio reached BRL 1.018 trillion, growing 1.3% quarter-on-quarter and 11.3% year-on-year, with notable growth in micro and SMEs at 25.2%.
Technological Advancements
Bradesco implemented Gen AI, improving productivity and operational efficiency by 94%, with increased delivery capacity and technological advancements.
Improved Efficiency
Operating expenses grew by only 5.8% year-over-year, close to inflation, despite significant investments in transformation and technology.
Negative Updates
Economic Slowdown Impact
Bradesco identified signs of a slowdown in economic activity, expecting lower demand for credit in the second half of the year due to high real interest rates.
Challenges in Private Payroll Deductible Loans
Issues in the private payroll deductible loan market were noted, with delinquency rates observed to be higher than expected, impacting growth potential.
Slight Increase in DTAs
An increase in DTAs was reported due to provisions made to neutralize gains from comprehensive transaction programs, indicating potential impacts on capital consumption.
Company Guidance
In the earnings call, Bradesco reported a recurring net income of BRL 6.1 billion for the second quarter of 2025, marking a significant 28.6% year-over-year growth and achieving a Return on Average Equity (ROAE) of 14.6%, an increase of 3.2 percentage points from the previous year. The total revenue for the quarter reached BRL 34 billion, up 15.1% year-over-year and 5.2% quarter-on-quarter. Net interest income (NII) net of provisions stood at BRL 9.9 billion, with a 19.4% year-over-year increase. The bank's expanded loan book grew to BRL 1.018 trillion, reflecting a 1.3% increase quarter-on-quarter and 11.3% year-on-year. Fee and commission income demonstrated robust growth, surging by 10.6% year-on-year and 5.5% quarter-on-quarter. The Insurance group also performed well, with a 6.5% quarter-on-quarter and 21.7% year-on-year increase. Operating expenses remained controlled, growing at 5.8% year-over-year, while the bank's capital position remained solid with a Tier 1 capital ratio of 13%. Bradesco's strategic focus on leveraging generative AI for improved productivity and efficiency was highlighted as a key driver of these results.Banco Bradesco SA Financial Statement Overview
Summary
Banco Bradesco SA shows strengths in revenue growth and operational efficiency. The income statement indicates a substantial revenue increase and strong EBIT margin. However, the balance sheet's high leverage and cash flow concerns due to negative operating cash flow raise red flags about financial stability.Income Statement
Banco Bradesco SA has shown a mixed performance in its income statement. The company experienced a revenue increase from 2023 to 2024, with a substantial growth rate of approximately 15.4%. However, the net profit margin was around 21.9% in 2024, which is relatively stable. The EBIT margin is strong at 39.1%, indicating efficient operational performance. However, the historical fluctuation in revenue and net income suggests some volatility in earnings.65
Positive
Balance Sheet
The balance sheet of Banco Bradesco SA presents a solid equity position with an equity ratio of approximately 8.1% in 2024. The debt-to-equity ratio is high at 1.52, reflecting significant leverage, which could pose risks if not managed properly. However, the company has maintained a stable stockholders' equity trend over the years, suggesting a strong capital base.70
Positive
Cash Flow
The cash flow statement indicates challenges for Banco Bradesco SA, with a negative operating cash flow in 2024. The free cash flow has declined significantly, showing a concerning trend in liquidity. The free cash flow to net income ratio is negative, suggesting potential cash management issues. Despite these concerns, the company has a history of positive free cash flow in earlier years, showing some potential for recovery.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 221.66B | 249.61B | 68.35B | 109.00B | 102.43B | 62.58B |
| Gross Profit | 83.20B | 78.69B | 68.16B | 106.34B | 102.43B | 82.37B |
| EBITDA | 12.79B | 23.63B | 16.73B | 0.00 | 0.00 | 10.00B |
| Net Income | 18.74B | 17.25B | 14.25B | 21.22B | 23.17B | 15.84B |
Balance Sheet | ||||||
| Total Assets | 2.05T | 2.07T | 1.93T | 1.79T | 1.68T | 1.60T |
| Cash, Cash Equivalents and Short-Term Investments | 441.94B | 292.77B | 522.98B | 28.55B | 21.28B | 23.85B |
| Total Debt | 683.00B | 256.03B | 359.49B | 338.99B | 238.94B | 217.91B |
| Total Liabilities | 1.88T | 1.90T | 1.76T | 1.63T | 1.53T | 1.46T |
| Stockholders Equity | 170.50B | 168.41B | 166.33B | 159.53B | 149.78B | 145.62B |
Cash Flow | ||||||
| Free Cash Flow | -123.21B | -93.62B | -9.32B | 32.35B | -106.41B | 138.17B |
| Operating Cash Flow | -116.13B | -91.33B | -177.63M | 41.77B | -102.00B | 142.43B |
| Investing Cash Flow | 44.20B | -5.01B | 83.61B | -17.78B | -19.31B | 20.46B |
| Financing Cash Flow | 47.78B | 117.88B | -23.06B | 21.92B | -1.61B | -36.41B |
Banco Bradesco SA Technical Analysis
Positive
2.90
Price Trends
2.91
Negative
2.64
Positive
2.35
Positive
Market Momentum
>-0.01
Negative
56.07
Neutral
88.04
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBD, the sentiment is Positive. The current price of 2.9 is above the 20-day moving average (MA) of 2.83, below the 50-day MA of 2.91, and above the 200-day MA of 2.35, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.07 is Neutral, neither overbought nor oversold. The STOCH value of 88.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $12.22B | 10.79 | 16.25% | 13.62% | -8.45% | 29.39% | |
78 Outperform | $19.82B | 12.83 | 16.35% | 5.59% | 3.89% | 15.26% | |
74 Outperform | $14.49B | 11.32 | 22.07% | 7.32% | -13.16% | -8.10% | |
74 Outperform | $11.31B | 10.64 | 24.02% | 5.53% | 18.54% | 65.80% | |
70 Outperform | $18.52B | 18.08 | 9.43% | 6.20% | -3.77% | -10.59% | |
67 Neutral | $17.22B | 11.28 | 10.45% | 3.94% | 10.30% | 1.07% | |
66 Neutral | $28.84B | 8.49 | 11.76% | 2.03% | -4.58% | 39.03% |
* Financial Sector Average
Performance Comparison
BBD
Banco Bradesco SA
2.90
0.32
12.40%
BCH
Banco De Chile
28.73
5.53
23.84%
BSBR
Banco Santander Brasil
4.93
-0.26
-5.01%
BSAC
Banco Santander Chile
23.97
4.69
24.33%
CIB
Bancolombia
48.06
19.30
67.11%
BAP
Credicorp
249.20
93.75
60.31%
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.