Bank Bradesco (BBD)

Price$3.47Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look reasonably priced, not obviously cheap, because low earnings multiples meet real credit and dilution risks.

At roughly seven times trailing earnings and about 0.98 times book value, Bradesco carries a modest valuation but not a distressed one. Price-to-book near one means investors pay about one unit of market value for each unit of net assets. Second-quarter recurring return on equity reached 16.2%, while Brazil's policy rate was 14% after an August cut. If mid-teen returns persist, this valuation has upside; if credit costs push returns toward the low teens, paying around book value looks much less compelling.

Big pictureProfit recovery is strong, but bank cash flow is naturally volatile and credit costs are rising.

SEC-derived history shows net income recovering from R$14.3 billion in 2023 to R$17.3 billion in 2024 and R$23.7 billion in 2025, a 66% increase across two years. Second-quarter 2026 recurring profit then rose another 16.2% year over year. Reported operating cash flow swung from nearly zero in 2023 to positive R$50.2 billion in 2024 and negative R$62.5 billion in 2025. For banks, deposit and loan movements make that measure unusually noisy, so earnings after credit losses and regulatory capital are better durability tests.

Business strengthBradesco’s improving returns, insurance profits, and capital cushion support earnings quality despite Brazil’s high-rate cycle.

The second quarter combined stronger lending with diversification: the expanded loan portfolio grew 11.6% year over year, while insurance net income rose 28.3% to R$2.9 billion. Efficiency also improved, with the operating efficiency ratio at 46.5%. Balance-sheet protection remains meaningful: the common-equity capital ratio was 11.3% versus an 8% regulatory threshold, and Tier I capital was 12.8%. The main blemish is credit quality: loans over 90 days past due reached 4.3%, while quarterly loan-loss provisions increased 22.6% from a year earlier.

What could change the storySustained mid-teen returns would make today’s valuation attractive; weaker credit or dilution would erase that edge.

The bull case needs Bradesco to keep returns near the recent 16% level as Brazilian rates decline, while secured lending and insurance limit credit volatility. The bear case is that higher provisions persist and new capital earns mediocre returns. Bradesco approved up to R$10 billion of new equity, issuing as many as 604.9 million shares, roughly 5.7% of the existing share count; preemptive rights protect participating holders, but others can be diluted. The raise should add about 0.9 percentage point to common equity capital. Meanwhile, 2025 cash dividends equaled roughly half of net income.

AI: News

Large capital increaseBradesco approved a large rights-based capital increase, strengthening buffers but creating dilution for holders who do not participate.

On July 29, Bradesco approved an increase of up to R$10 billion, with controlling shareholders committing up to R$8 billion. The bank may issue about 604.9 million new common and preferred shares at a 6% discount, with existing shareholders receiving preemptive rights equal to about 5.72% of their holdings. A full subscription should lift the common-equity capital ratio by roughly 0.9 percentage point. The stronger buffer supports technology and growth spending, but the larger share base raises the return hurdle.

Profit recovery continuedSecond-quarter profit rose again as lending and insurance grew, though bad-loan indicators edged higher.

Bradesco's August 6 filing reported second-quarter recurring net income of R$7.1 billion, up 16.2% year over year, and total revenue of R$37.6 billion, up 10.3%. Loans expanded 11.6%, while insurance net income jumped 28.3%. Credit was less clean: the over-90-day delinquency ratio reached 4.3% and quarterly loan-loss provisions increased 22.6%. The U.S.-listed shares declined about 2% that session; the timing is consistent with investor caution, but it does not prove the results alone caused the move.

Rates fall, lenders tightenBrazil’s rate cuts may ease borrower strain, but Bradesco is still steering toward safer, secured lending.

Brazil's central bank cut its benchmark rate to 14% on August 5, its fourth consecutive reduction, as inflation slowed. Days later, Reuters reported that major Brazilian banks, including Bradesco, were reducing exposure to riskier unsecured lending as household debt approached half of disposable income. Bradesco itself says new lending increasingly favors collateral and stronger risk-adjusted returns. Lower rates could eventually ease borrower stress and support loan demand, but tighter underwriting shows the bank still expects elevated credit risk.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2010	2009	2008	2007
Revenue	R$117.81B	R$105.33B	R$98.33B	R$108.85B	—	—	—	—	—	—	—	R$67.66B	R$64.87B	R$49.03B	R$48.85B
Operating expenses	—	—	—	—	—	—	—	—	—	—	—	R$46.71B	R$40.38B	R$35.63B	R$32.94B
Net income	R$23.92B	R$17.54B	R$14.50B	R$21.46B	R$23.38B	R$16.03B	R$21.17B	R$16.75B	R$17.31B	R$17.99B	R$18.24B	R$9.66B	R$9.22B	R$7.02B	R$7.95B
Net profit margin	20.31%	16.65%	14.75%	19.71%	—	—	—	—	—	—	—	14.28%	14.21%	14.31%	16.26%
Basic EPSper basic share	R$2.13	R$1.55	R$1.27	R$1.89	R$2.07	R$1.41	—	—	—	—	—	—	—	—	—
Diluted EPSper diluted share	R$2.13	R$1.55	R$1.41	R$2.09	R$2.27	R$1.55	—	—	—	—	—	—	—	—	—

Review official source filings ↗

Owners

Reported shareholders

Ownership data is not available for this listing yet.

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$1.0K disclosed value

Sells (SEC code S)3$3.35M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 24, 2026Form 4	Neto Jose Ramos RochaVice President Officer	BuyPreference shares - BBDC4 · indirect	57	$17.68	$1.0K	84
Jun 1, 2026Form 4	de Minas Mauricio MachadoBoard Member	SellPreference shares - BBDC4	29.8K	$17.56	$523.3K	393.1K
May 28, 2026Form 4	Camara Rogerio PedroDirector	SellPreference shares - BBDC4	146.3K	$18.03	$2.64M	241.8K
May 27, 2026Form 4	Ramalho Miranda Jose AugustoDirector	SellPreference shares - BBDC4	10.3K	$18.00	$185.3K	163.59

Review ownership filings at SEC.gov ↗

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Bank Bradesco (BBD)

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