Banco Bradesco (BBDO) AI Stock Analysis

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Banco Bradesco

(NYSE:BBDO)

Rating:66Neutral

Price Target:

$2.50

▲(1.63% Upside)

Banco Bradesco's strength lies in its solid financial results and optimistic growth prospects, especially in net income and revenue. However, technical indicators show a lack of momentum, and liquidity concerns from negative cash flows and high leverage weigh on the score.

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

Market Cap

$28.39B

Dividend Yield1.97%

Average Volume (3M)41.59K

Price to Earnings (P/E)7.4

Beta (1Y)0.36

Revenue Growth-4.58%

EPS Growth38.70%

CountryUS

Employees71,953

SectorFinancial

Sector Strength64

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.10

Shares Outstanding5,330,304,700

10 Day Avg. Volume50,034

30 Day Avg. Volume41,588

Financial Highlights & Ratios

PEG Ratio0.24

Price to Book (P/B)0.70

Price to Sales (P/S)1.49

P/FCF Ratio-1.26

Enterprise Value/Market Cap4.70

Enterprise Value/Revenue0.94

Enterprise Value/Gross Profit1.52

Enterprise Value/Ebitda5.09

Forecast

1Y Price Target

$3.00

Price Target Upside21.95% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Banco Bradesco Business Overview & Revenue Model

Company DescriptionBanco Bradesco S.A. (BBDO) is one of the largest banking and financial services companies in Brazil. Headquartered in Osasco, São Paulo, the bank operates through a wide network of branches and service points across the country. Bradesco offers a comprehensive range of financial products and services, including retail, commercial, and investment banking, as well as asset management, insurance, and pension plans. The bank serves a diverse clientele, ranging from individual customers to small businesses and large corporations.

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:Jul 30, 2025

(Q2-2025)

% Change Since: -2.38%|

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Positive

Bradesco's earnings call highlighted significant growth in net income and revenue, driven by strong performance in insurance, NII, and investment banking. However, concerns over economic slowdown and high delinquency rates in payroll loans were noted as challenges. Despite these concerns, the overall sentiment was positive, with confidence in future growth and operational improvements.

Q2-2025 Updates

Positive Updates

Significant Growth in Recurring Net Income

Bradesco reported a recurring net income of BRL 6.1 billion, marking a significant 28.6% growth year-over-year, with an ROAE of 14.6%, up 3.2 percentage points year-on-year.

Record Revenue and NII Growth

Total revenue reached BRL 34 billion, a 15.1% increase year-on-year, with net interest income (NII) growing 16% year-on-year.

Strong Performance in Insurance and Pension Plans

Insurance, pension plans, and savings bonds grew 21.7% year-on-year and 6.5% quarter-on-quarter.

Robust Fee and Commission Income

Fee and commission income increased by 10.6% year-on-year and 5.5% quarter-on-quarter, with notable growth in card income and consortium management.

Loan Portfolio Growth in Micro and SMEs

The loan portfolio grew by 11.3% year-on-year, with micro, small, and medium-sized enterprises showing a 25.2% increase.

Positive Outlook in Investment Banking

Investment banking showed strong M&A activity with a 34% growth year-on-year and 76% quarter-on-quarter.

Negative Updates

Economic Slowdown Concerns

The company expressed concerns about a slowdown in economic activity and demand, particularly affecting small and medium enterprises (SMEs).

High Delinquency in Payroll Loans

An observed delinquency rate of 16% in the payroll loans market, particularly in private companies, was highlighted as a concern.

Flat Growth in Large Corporates

The bank experienced flat growth in large corporate loans, attributed to settlements due to IOF in May and June.

Operating Expense Management

Operating expenses grew by 5.8% year-over-year, with a noted increase in the 'other' expenses category.

Company Guidance

In the second quarter of 2025, Bradesco achieved a recurring net income of BRL 6.1 billion, marking a 28.6% year-over-year growth, with a return on average equity (ROAE) of 14.6%, up 3.2 percentage points from the previous year. Total revenue reached BRL 34 billion, reflecting a 15.1% increase year-over-year and a 5.2% rise quarter-over-quarter. The bank's net interest income (NII) grew significantly, with client NII net of provisions increasing by 20.7% year-on-year to BRL 9.6 billion. The loan portfolio expanded to BRL 1.018 trillion, growing 1.3% quarter-on-quarter and 11.3% year-on-year. Fee and commission income rose by 10.6% year-on-year and 5.5% quarter-on-quarter, while the Insurance group's revenue grew by 6.5% quarter-on-quarter and 21.7% year-on-year. Operating expenses were controlled, with a 4.9% growth in personnel and administrative costs and an overall operating expense increase of 5.8% year-on-year. The bank's capital remained stable, with a Tier 1 capital ratio of 13%. Bradesco adjusted its annual guidance for fee and commission income to 5-9% and for Insurance revenue to 9-13%, citing strong performance in these areas. The bank leveraged Gen AI technology to enhance efficiency and productivity across its operations, contributing to its robust financial performance.

Banco Bradesco Financial Statement Overview

Summary

Banco Bradesco demonstrates strong core banking revenue but faces profitability challenges due to declining revenue and fluctuating net income margins. The balance sheet is robust but high leverage and negative cash flows pose liquidity risks.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Neutral

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	141.69B	78.89B	100.27B	83.16B	92.84B	130.94B
Gross Profit	87.93B	78.69B	68.16B	32.00K	11.00K	62.58B
EBITDA	26.21B	23.63B	16.73B	30.28B	38.63B	11.14B
Net Income	20.69B	17.25B	14.25B	21.22B	23.17B	15.84B
Balance Sheet
Total Assets	2.15T	2.07T	1.93T	1.79T	1.68T	1.60T
Cash, Cash Equivalents and Short-Term Investments	263.87B	476.88B	522.98B	367.61B	394.23B	497.78B
Total Debt	728.14B	689.53B	631.89B	571.92B	238.94B	217.91B
Total Liabilities	1.97T	1.90T	1.76T	1.63T	1.53T	1.46T
Stockholders Equity	174.05B	168.41B	166.33B	159.53B	149.78B	145.62B
Cash Flow
Free Cash Flow	21.65B	-93.62B	-9.32B	32.35B	-106.41B	138.17B
Operating Cash Flow	27.57B	-91.33B	-177.63M	41.77B	-102.00B	142.43B
Investing Cash Flow	56.74B	-5.01B	83.61B	-17.78B	-19.31B	20.46B
Financing Cash Flow	1.54B	117.88B	-23.06B	21.92B	-1.61B	-36.41B

Banco Bradesco Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.46

Price Trends

50DMA

2.55

Negative

100DMA

2.33

Positive

200DMA

2.13

Positive

Market Momentum

MACD

-0.02

Negative

RSI

53.19

Neutral

STOCH

63.16

Neutral

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 2.46 is below the 20-day moving average (MA) of 2.49, below the 50-day MA of 2.55, and above the 200-day MA of 2.13, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 53.19 is Neutral, neither overbought nor oversold. The STOCH value of 63.16 is Neutral, 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 (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIB	75 Outperform	$11.87B	13.12	15.99%	14.57%	-5.45%	3.43%
BMA	74 Outperform	$4.65B	1,013.14	0.11%	3.21%	-46.30%	-79.35%
BCH	73 Outperform	$14.04B	11.06	22.07%	7.49%	-13.16%	-8.10%
BSAC	71 Outperform	$10.97B	10.41	24.02%	5.70%	18.54%	65.80%
BSBR	70 Outperform	$17.92B	17.49	9.43%	6.37%	-3.94%	31.52%
Sector *	67 Neutral	$17.01B	11.60	9.79%	3.95%	10.63%	1.62%
BBDO	66 Neutral	$28.39B	7.39	11.76%	1.97%	-4.58%	38.70%

* Financial Sector Average

Performance Comparison

BBDO

Banco Bradesco

2.54

0.33

14.93%

BCH

Banco De Chile

28.08

5.77

25.86%

BMA

Banco Macro SA

72.84

23.22

46.80%

BSBR

Banco Santander Brasil

4.80

-0.09

-1.84%

BSAC

Banco Santander Chile

23.32

4.67

25.04%

CIB

Bancolombia

44.94

17.85

65.89%

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 05, 2025