BBD Banco Bradesco S.A.

▼ Selling Case8 pts

• −Growth in agricultural and vehicle financing could test credit quality, as Goldman Sachs analysts discussed asset-quality pressures at peers in these activities on the 2026-08-06 call, while Bradesco's vehicle financing grew by 26.8% in quarter 2 of fiscal year 2026 ended 2026-06-30 compared with the same quarter of the previous year; guarantees and customer selectivity do not eliminate the possibility of losses emerging as loans mature.
• −FGI and FGO guarantees do not prevent pressure on provisions and delinquency indicators before collection, as management explained on the 2026-08-06 call that claims take 180 or 185 days and that the expiration of grace periods puts pressure on delinquency rates for loans more than 90 days past due. Management also expected net interest income after provisions to be slightly below the midpoint of the guidance range for fiscal year 2026 ending 2026-12-31.
• −Relatively weak financial safety constrains the investment case, as Bradesco scored 15 out of 100 within the industry using data as of 2026-06-30 on the dimension measuring financial strength, a level below most companies in the industry, although it does not by itself determine the bank's regulatory capital position.
• −The increase in the share count reduces the benefit of earnings growth for each share, as the diluted share count reached 11.16 billion shares in quarter 2 of fiscal year 2026 ended 2026-06-30 compared with 10.58 billion shares in quarter 2 of fiscal year 2025 ended 2025-06-30, an increase of 5.5%.
• −Relative growth remains less robust than the margin improvement, as the growth dimension scored 33 out of 100 within the industry using data as of 2026-06-30, a measure of financial expansion that places the bank below most of its peers, despite net revenue growth of 6.0% in quarter 2 of fiscal year 2026 ended 2026-06-30 compared with the same quarter of the previous year.
• −Competition limits the ease of continued expansion in FGI and FGO, as management described competition among established banks as strong on the 2026-08-06 call, making continued growth in the programs dependent on maintaining credit terms and pricing appropriate to the risks.
• −The shareholder return dimension scored 23 out of 100 within the industry using data as of 2026-06-30, below most companies in the industry on the measure covering the return of value to shareholders through dividends and share repurchases, making this pillar less supportive than the improvement in operating profitability.
• −The momentum dimension scored 33 out of 100 within the industry using data as of 2026-06-30, placing Bradesco below most companies in the industry on the measure of the stock's performance trend, so relative market performance does not provide support as strong as the sentiment dimension.