São Paulo, May 20, 2026, 16:03 (BRT)
Banco Bradesco preferred shares were up 3.28% at R$17.96 late Wednesday, near session highs, as Brazilian bank stocks climbed along with the market. BBDC4 opened at R$17.51, touched R$17.99, with volume around 30.9 million shares. Itaú Unibanco preferred added 2.97% and Banco do Brasil advanced 2.13%.
Bradesco outperformed the Ibovespa, Brazil’s main share index, which closed up 2.12% near 177,980. The market snapped back after falling 1.5% on Tuesday. Financial shares moved higher Wednesday with oil prices down, according to Trading Economics.
B3 made the move in a regular session, with normal trading in São Paulo from 10:00 to 16:55.
Brazilian banks face a mix of improving earnings and stubbornly high rates. The Selic rate stands at 14.5% after two 25 basis point cuts. The central bank has said it won’t provide forward guidance with oil market risks from Iran leaving inflation uncertain.
Finance Ministry raised its 2026 inflation forecast to 4.5% from 3.7% on Monday, now matching the upper end of the central bank’s target range. Higher rates tend to help banks’ spreads but also put more pressure on borrowers.
Bradesco shares are trading on signs from the first quarter that its turnaround is still going. The bank posted recurring net income of R$6.8 billion, up 16.1% on the year. Return on equity came in at 15.8%. Net interest income rose by 16.4%. CEO Marcelo Noronha told investors Bradesco has a “moderate appetite” and will “continue to grow.”
The bigger issue is credit. Bradesco’s expanded loan book was up 8.4% at R$1.09 trillion. Loans over 90 days past due hit 4.2%. Loan-loss provisions jumped 26.5% from last year, reaching about R$9.7 billion.
Bradesco sounded a more cautious note to investors, stopping short of calling it a strong growth story. Investor Relations Director André Carvalho pointed to a “slight shift in tone” around risk appetite and insisted that caution was “not a barrier to growth.” Noronha also said the bank isn’t “hitting the brakes.”
Politics are in the mix for the recovery trade. A poll from AtlasIntel/Bloomberg, as reported by Reuters, put President Luiz Inacio Lula da Silva ahead of Senator Flavio Bolsonaro in a possible second-round runoff. The poll followed allegations connecting Bolsonaro to former banker Daniel Vorcaro, which Bolsonaro denied, according to Reuters.
But the rally could get shaky. Higher oil, a weaker real, or a stubbornly high Selic might squeeze Bradesco on bad loans and provisions, with agribusiness and unsecured consumer lending at risk. Carvalho said the short-term uptick in delinquencies is “100% seasonal.” Noronha pointed to “some temporary setbacks” in agribusiness.
Bradesco’s preferred ADR traded at $3.565 in New York. The bank’s shares are listed on B3, with common shares under BBDC3 and preferred under BBDC4. Its preferred ADR trades on the NYSE as BBD.
Wednesday’s action shows buyers are stepping back into the rebound. But there’s no sign they’ve quit watching credit costs.
