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Banco Bradesco S.A. (BBDO)
:BBDO
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Banco Bradesco
(NYSE:BBDO)
Rating:74Outperform
Price Target:
$3.00
â–²(11.52%Upside)
Banco Bradesco (BBDO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.95B
Dividend Yield1.32%
Average Volume (3M)68.06K
Price to Earnings (P/E)8.4
Beta (1Y)0.41
Revenue Growth-9.78%
EPS Growth28.44%
CountryUS
Employees71,953
SectorFinancial
Sector Strength74
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.09
Shares Outstanding5,330,304,700
10 Day Avg. Volume67,977
30 Day Avg. Volume68,062
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)2.07
Price to Sales (P/S)0.00
P/FCF Ratio-11.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Banco Bradesco 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 through several key streams. The primary source of income is interest income from loans and advances to customers, alongside income from securities and other financial instruments. Additionally, the bank earns significant revenue from fees and commissions, which are derived from services such as account management, credit card operations, and investment fund management. Bradesco's insurance division also contributes a substantial portion of its earnings, offering products like life, health, and property insurance. The bank maintains strategic partnerships and investments that enhance its service offerings and expand its market reach, further bolstering its financial performance. Economic conditions, regulatory environment, and consumer behavior are factors that influence its earnings.
Banco Bradesco Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 28.10%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive performance for Bradesco, with strong growth in net income, revenue, and insurance activities. However, challenges such as the high interest rate environment and profitability issues in the retail segment present potential hurdles. The bank remains optimistic about future growth, supported by technological advancements and strategic initiatives.Q1-2025 Updates
Positive Updates
Strong Net Income Growth
Bradesco reported a recurring net income of nearly BRL5.9 billion, reflecting a growth of more than 39% year-on-year and 8.6% quarter-on-quarter.
Robust Revenue Growth
Total revenue reached BRL32 billion, growing 15% year-on-year. Key segments such as fee and commission income increased by 10.3%, and insurance grew by 32.7% year-on-year.
Insurance Group Performance
The insurance segment showed significant traction with an ROAE of 22.4%. Insurance premiums, pension contributions, and capitalization bonds reached BRL30 billion, up 25.3% year-on-year.
Loan Portfolio Expansion
The expanded loan portfolio totaled BRL1 billion, growing 4.9% year-on-year and 2.4% quarter-on-quarter. Notable growth in micro, small, and medium-sized enterprises by almost 30% year-on-year.
Tech and Productivity Gains
Productivity in tech improved with delivery lead time reduced by 32% and business development hours increased by 53%. GenAI implementation led to a 46% efficiency gain.
Negative Updates
Challenges in Retail Segment
The mass retail segment remains a detractor of profitability, with ongoing efforts to improve cost to serve and client engagement.
Interest Rate Environment
The high interest rate environment poses challenges for NII and market activities, with potential stress on margins as rates peak.
Capital and Growth Concerns
Questions about Bradesco's capital structure and its ability to support future growth have been raised, although the bank remains confident in its current plans.
Company Guidance
In the first quarter of 2025, Banco Bradesco reported a recurring net income of BRL5.9 billion, marking a significant growth of over 39% year-on-year and 8.6% quarter-on-quarter, with a return on average equity (ROAE) of 14.4%. Total revenue reached BRL32 billion, a 15% increase from the previous year. Key financial metrics included a net interest income (NII) growth of 13.7% year-on-year and 1.4% quarter-on-quarter, and a 10.3% rise in fee and commission income. The insurance sector showed remarkable performance with a 32.7% year-on-year increase in income. The expanded loan portfolio grew by 4.9% year-on-year and 2.4% quarter-on-quarter, with significant contributions from individuals (16.2% growth) and small to medium enterprises (nearly 30% growth). The bank maintained a stable cost of risk at 3%, and NII net of provisions grew 30% year-over-year to BRL9.6 billion. Bradesco's strategy focused on secured loans, such as payroll deductible loans, which accounted for a 14.3% market share among private banks, and an impressive penetration in the agribusiness sector. The bank's operational efficiency was reflected in a 12% year-on-year growth in operating expenses, despite a reduction in headcount and a review of their service footprint. Looking ahead, Bradesco's guidance for 2025 remains optimistic, with expectations of staying within or above the projected ranges, supported by robust growth in their insurance group, investment banking, and revenue from both individual and company clients.Banco Bradesco Financial Statement Overview
Summary
Banco Bradesco shows strong revenue from core banking operations, but faces profitability challenges with declining revenue and fluctuating net income margins. While the balance sheet is robust, high leverage poses potential risks. Cash flow issues are significant, with negative operating and free cash flows indicating potential liquidity concerns.Income Statement
Banco Bradesco's income statement shows a declining revenue trend with a significant drop in revenue from 2023 to 2024. The gross profit margin is strong at 100% due to the nature of banking operations. However, net profit margin has decreased, indicating challenges in maintaining profitability. EBIT margin remains robust, but the absence of EBITDA data limits further analysis.72
Positive
Balance Sheet
The balance sheet reflects a strong asset base with total assets growing year over year. However, the debt-to-equity ratio is high, suggesting potential leverage risks. The equity ratio is stable, indicating a solid capital structure, though the return on equity has shown some fluctuations, pointing to variable profitability.65
Positive
Cash Flow
Cash flow statements indicate volatility with negative operating cash flows in recent years, raising concerns about cash generation capabilities. Free cash flow has been negative, highlighting potential challenges in funding operations and growth without external financing. The operating cash flow to net income ratio is negative, reflecting issues in converting earnings to cash.58
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 94.75B | 78.89B | 100.27B | 83.16B | 92.84B | 130.94B | Gross Profit |
| 82.37B | 78.69B | 68.16B | 32.00K | 11.00K | 62.58B | EBIT |
| 29.31B | 30.81B | 23.04B | 39.26B | 49.29B | 20.65B | EBITDA |
| 25.41B | 23.63B | 16.73B | 30.28B | 38.63B | 11.14B | Net Income Common Stockholders |
| 18.74B | 17.25B | 14.25B | 21.22B | 23.17B | 15.84B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 441.94B | 476.88B | 522.98B | 367.61B | 394.23B | 497.78B | Total Assets |
| 2.05T | 2.07T | 1.93T | 1.79T | 1.68T | 1.60T | Total Debt |
| 683.00B | 689.53B | 631.89B | 571.92B | 238.94B | 217.91B | Net Debt |
| 527.12B | 521.17B | 460.05B | 428.94B | 110.52B | 91.82B | 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 | ||||
| 4.71B | -93.62B | -9.32B | 32.35B | -106.41B | 138.17B | Operating Cash Flow |
| 11.88B | -91.33B | -177.63M | 41.77B | -102.00B | 142.43B | Investing Cash Flow |
| -51.48B | -5.01B | 83.61B | -17.78B | -19.31B | 20.46B | Financing Cash Flow |
| 6.76B | 117.88B | -23.06B | 21.92B | -1.61B | -36.41B |
Banco Bradesco Technical Analysis
Positive
2.69
Price Trends
2.33
Positive
2.15
Positive
2.12
Positive
Market Momentum
0.09
Negative
68.22
Neutral
85.71
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBDO, the sentiment is Positive. The current price of 2.69 is above the 20-day moving average (MA) of 2.56, above the 50-day MA of 2.33, and above the 200-day MA of 2.12, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 68.22 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBDO.
Banco Bradesco Risk Analysis
Banco Bradesco disclosed 42 risk factors in its most recent earnings report. Banco Bradesco 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 Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $11.63B | 10.94 | 24.02% | 5.37% | 18.54% | 65.80% | |
75 Outperform | $10.93B | 12.52 | 15.99% | 16.17% | -5.45% | 3.43% | |
74 Outperform | $4.80B | 1,071.39 | 0.11% | 29.39% | -46.30% | -79.35% | |
74 Outperform | $29.95B | 8.44 | 10.61% | 1.32% | -9.78% | 28.44% | |
73 Outperform | $15.02B | 11.68 | 23.88% | 6.96% | -17.02% | -10.73% | |
70 Outperform | $20.54B | 16.98 | 10.89% | 5.03% | -3.94% | 31.52% | |
64 Neutral | $12.86B | 9.79 | 7.84% | 78.10% | 12.05% | -7.99% |
* Financial Sector Average
Performance Comparison
BBDO
Banco Bradesco
2.71
0.69
34.16%
BCH
Banco De Chile
29.56
7.78
35.72%
BMA
Banco Macro SA
72.93
13.63
22.98%
BSBR
Banco Santander Brasil
5.45
0.61
12.60%
BSAC
Banco Santander Chile
24.29
6.31
35.09%
CIB
Bancolombia
42.11
14.42
52.08%
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.