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Banco Bradesco (BBDO)
NYSE:BBDO
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Banco Bradesco (BBDO) AI Stock Analysis

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BBDO

Banco Bradesco

(NYSE:BBDO)

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Neutral 58 (OpenAI - 5.2)
Rating:58Neutral
Price Target:
$3.50
â–²(9.03% Upside)
Action:Reiterated
Date:08/10/26
Overall score reflects a tug-of-war between weaker financial quality (negative TTM operating/free cash flow and elevated leverage) and meaningful positives from valuation (low P/E and high dividend yield) plus a generally supportive earnings-call outlook (reaffirmed guidance and capital strengthening). Technical indicators are broadly neutral and do not materially tilt the score.
Positive Factors
Loan portfolio growth and secured/govt origination
Sustained double‑digit loan growth focused on secured and government‑backed lines expands high‑quality, lower‑loss corridors. Market leadership in FGI/FGO increases risk‑adjusted yields and supports durable origination volumes, cushioning cyclical unsecured exposure and supporting long‑term loan revenue.
Negative Factors
Elevated leverage and balance‑sheet sensitivity
High debt‑to‑equity increases funding and refinancing sensitivity and magnifies earnings volatility when credit costs rise. Elevated leverage constrains balance‑sheet flexibility, raises capital buffers required for growth, and heightens downside risk during economic or funding stress over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Loan portfolio growth and secured/govt origination
Sustained double‑digit loan growth focused on secured and government‑backed lines expands high‑quality, lower‑loss corridors. Market leadership in FGI/FGO increases risk‑adjusted yields and supports durable origination volumes, cushioning cyclical unsecured exposure and supporting long‑term loan revenue.
Read all positive factors

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

Banco Bradesco Business Overview & Revenue Model

Company Description
Banco Bradesco S.A., together with its subsidiaries, provides various banking products and services in Brazil and internationally. The company operates in two segments, Banking and Insurance. It engages in banking operations, including investment,...
How the Company Makes Money
Bradesco generates revenue primarily from a mix of interest-based income and fee-based income across its banking and insurance/asset management activities. (1) Net interest income: The bank earns interest and similar income on loans and other inte...

Banco Bradesco 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 strong operational and financial positives: solid net income and ROAE, double‑digit loan portfolio growth across segments (notably SME and government‑backed origination), increasing revenues and client NII, robust insurance results, market leadership in several niches, significant digital/AI progress, and a proactive capital increase to strengthen tangible capital. Headwinds are present — chiefly timing‑related provisioning from guarantee claim periods (FGI/FGO), some asset‑quality increases tied to specific clients (John Deere Bank and one wholesale name), modest fee growth and capital markets volatility. Management framed the quality issues as largely manageable, collateralized and temporary, and emphasized risk‑adjusted returns and portfolio selectivity. On balance, the positive operational momentum and capital actions outweigh the localized asset‑quality and revenue‑mix challenges.
Positive Updates
Strong Net Income and Profitability
Net income of BRL 7.1 billion in Q2 2026, up 16.2% year‑on‑year and 3.5% quarter‑on‑quarter; ROAE reported at 16.2% for the quarter (management highlighted strong quarterly profitability).
Negative Updates
Asset Quality Pressure from Guarantee Claim Timing
Provisioning pressure due to FGI/FGO guarantee claim/grace periods (120–185 days) and production peak from March–October last year, causing temporary increases in provisions and upward pressure on over‑90 NPL and cost of risk until guarantees are collected.
Read all updates
Q2-2026 Updates
Negative
Strong Net Income and Profitability
Net income of BRL 7.1 billion in Q2 2026, up 16.2% year‑on‑year and 3.5% quarter‑on‑quarter; ROAE reported at 16.2% for the quarter (management highlighted strong quarterly profitability).
Read all positive updates
Company Guidance
Management reaffirmed guidance to deliver net income growth step‑by‑step and to finish 2026 from the midpoint to the top of the guidance range, with revenues growing double‑digits (total revenue BRL 37.6bn, +10.3% YoY) and operating result +14% YoY; they expect NIM roughly flat around 9% (Q1–Q2 9.1%), NII (client + market) to remain resilient (client NII up to BRL 20.2bn, market NII ~BRL 700m), NII net of provisions slightly below the center of guidance, expenses nearer the floor, and insurance around the 6–8% guidance (H1 insurance net income BRL 2.9bn, +28.3% YoY) while continuing portfolio growth (loans +11.6% YoY to BRL 1.137bn, SME +16.1% YoY with BRL 37bn added, FGI/FGO origination +64.5% YoY and 52.7% QoQ, 21.6% market share) and disciplined credit (cost of risk ~3.5%, client NII net of provisions 4.5%, overall NPL>90 up ~10 bps, private payroll NPL ~4.7% vs market 8.9%); capital actions aim to strengthen CET1 (slides show ~11% CET1 with ~140 bp Bradsaúde recognition pending and a BRL 10bn raise that would bring CET1 to ~13.6% and Tier‑1 toward ~15.1%).

Banco Bradesco Financial Statement Overview

Summary
Mixed fundamentals: steady TTM revenue growth and decent net margin/ROE are positives, but persistently high leverage (debt-to-equity ~4+) and a sharp deterioration to negative TTM operating/free cash flow meaningfully weaken overall financial quality.
Income Statement
58
Neutral
Balance Sheet
42
Neutral
Cash Flow
33
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 Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.21
Price Trends
50DMA
3.06
Negative
100DMA
3.18
Negative
200DMA
3.15
Negative
Market Momentum
MACD
-0.02
Positive
RSI
41.19
Neutral
STOCH
15.63
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBDO, the sentiment is Negative. The current price of 3.21 is above the 20-day moving average (MA) of 3.19, above the 50-day MA of 3.06, and above the 200-day MA of 3.15, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.19 is Neutral, neither overbought nor oversold. The STOCH value of 15.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$16.22B13.5622.63%4.43%-3.09%2.72%
71
Outperform
$35.02B9.639.29%2.62%5.37%14.38%
70
Outperform
$40.48B9.7410.68%2.67%3.72%10.87%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
67
Neutral
$20.62B15.6321.49%5.37%3.94%3.40%
62
Neutral
$21.29B30.2011.81%5.10%20.73%27.11%
58
Neutral
$32.66B7.1813.60%7.36%32.37%27.72%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BBDO
Banco Bradesco
3.01
0.59
24.17%
BCH
Banco De Chile
41.09
13.39
48.32%
BSBR
Banco Santander Brasil
5.60
1.07
23.59%
BSAC
Banco Santander Chile
34.44
11.76
51.83%
KB
Kb Financial Group
117.68
39.67
50.85%
SHG
Shinhan Financial Group Co
74.86
26.62
55.18%
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