SÃO PAULO, August 7, 2026, 16:12 BRT — Trading was in progress on Brazil’s stock market. Session closes at 17:00 BRT.
- The initial BBDC4 quote stood at R$17.29, roughly 2% under the R$17.64 subscription price.
- Recurring profit in the second quarter increased by 16.2%, while provisions were up 22.6%.
- Subscription rights are available until September 4. Controllers pledged as much as R$8 billion of the R$10 billion offering.
Shares of Banco Bradesco’s preferred stock slipped under the subscription price on Friday. The switch occurred a day after shareholders gained the ability to exercise their rights.
BBDC4 traded at R$17.29 at 15:47 BRT, a decrease of 2.32%. The new preferred shares were priced at R$17.64. Excluding entitlement and fee differences, market buys came at about a 2% discount.
This alters the short-term financial appeal of the offer. Bradesco initially set the price at a 6% markdown from its July 28 closing level. At present, that discount is no longer available.
Rights can be exercised until September 4. Investors meeting the criteria are entitled to purchase approximately 5.72 same-class shares for every 100 owned as of August 4. Maximum dilution for those not taking part could reach 3.40%.
Capital-raising comparison
| Measure | Figure | Investor comparison |
|---|---|---|
| BBDC4 market price (late session) | R$17.29 | Preliminary at 15:47 BRT |
| Preferred share offer price | R$17.64 | R$0.35 above the market, equal to roughly 2.0% |
| Discount at issue | 6.0% | Calculated from July 28 closing value |
| Subscription entitlement | 5.721967934 per 100 shares | Applies to same class positions as of August 4 |
| Subscription period | August 6–September 4 | Ex-rights for shares from August 5 |
| Total preferred shares available | 301.98 million shares | Included in the larger R$10 billion capital raise |
| Potential dilution (maximum) | 3.40% | For holders who opt out of subscribing |
Data on the market is provisional. Conditions for the offer are stated in Bradesco’s notice to shareholders.
The controlling shareholders have pledged up to R$8 billion. Bradesco is targeting up to R$10 billion. The final offer size will depend on the level of interest from minority investors.
Despite strong headline results, pricing pressure persisted. Recurring profit climbed 16.2% to R$7.05 billion, marking the tenth consecutive quarter of growth and surpassing consensus estimates by approximately 1.3%.
The quality of earnings was mixed. Overall net interest income increased by 15.7%, as provisions also rose, up 22.6%. Post-provision income advanced 9.9%, trailing the loan portfolio’s 11.6% expansion.
Chief Executive Marcelo Noronha stated, “We maintained good commercial traction, despite a moderate risk appetite.” Loans overdue by more than 90 days increased to 4.3%. Provision coverage declined to 152.3%, down from 161.0% in the previous quarter. Neofeed
Market comparison late Friday
| Asset | Late price or level | Session move |
|---|---|---|
| Banco Bradesco preferred | R$17.29 | -2.32% |
| Itaú Unibanco Holding S.A. BVMF:ITUB4 preferred | R$40.87 | -2.30% |
| Banco Santander (Brasil) S.A. (BVMF:SANB11) units | R$29.26 | -0.03% |
| Ibovespa (INDEXBVMF:IBOV) | 172,432.34 | -1.77% |
Preliminary quotes captured between 15:47 and 15:49 BRT.
Bradesco was not the only bank under pressure. Shares of Itaú also dropped sharply, and the Ibovespa index declined by 1.77%. Despite this, Bradesco shares remained roughly 4.2% lower than their R$18.05 close on Wednesday.
Bradesco posts a 16.2% return on average equity, outpacing the 14% Selic rate by 2.2 percentage points. This figure serves as a basic profitability gauge, rather than a precise cost-of-equity metric. Itaú still shows a considerably larger reported spread.
Profitability among Brazilian private banks
| Bank | Reported Q2 profit measure | Reported ROE/ROAE | Simple spread over 14% Selic |
|---|---|---|---|
| Banco Bradesco | R$7.05 billion recurring net income | 16.2% | +2.2 points |
| Itaú Unibanco | R$12.4 billion recurring managerial result | 24.3% | +10.3 points |
| Santander Brasil | R$3.01 billion net income | 12.5% | -1.5 points |
The banks employ various definitions for profit and return. The Selic comparison is conducted through straightforward arithmetic and does not involve a valuation model.
One notable area of expansion is corporate rural loans, which surged 30.9% to R$56.7 billion. Nicolas Merola at EQI Research described the exposure as “a point of concern.” SEC
Analyst views now range from Neutral to Buy. Banco BTG Pactual S.A. (BVMF:BPAC11) maintained its Neutral rating, with Itaú BBA holding Outperform. BB Investimentos, a unit of Banco do Brasil S.A. BVMF:BBAS3, and Genial reaffirmed their Buy recommendations.
Analyst ratings
| Research house | Recommendation | Target price | Main post-result focus |
|---|---|---|---|
| Banco BTG Pactual | Neutral | R$22 | Lower bad debt coverage and projected credit expenses |
| Itaú BBA | Outperform | R$22 | Resilient treasury performance, slow growth in fees |
| BB Investimentos | Buy | R$24 by end-2027 | Higher insurance profit and improved efficiency |
| Genial Investimentos | Buy | R$25 | Provisions offsetting part of the margin increase |
Analyst projections shown do not represent official company forecasts. Approaches to valuation and timeframes for targets vary among sources.
Bradesco reported a Common Equity ratio of 11.3% at the end of June. The bank continues to forecast loan growth between 8.5% and 10.5% for 2026. Its loan portfolio is presently 11.6% bigger compared with the same period a year ago.
Brazil’s central bank lowered the Selic rate by 25 basis points to 14% on Wednesday, marking a fourth straight cut. Macro conditions could become more favorable, though Noronha stated the timing and magnitude of additional reductions is still unclear.
Potential risks are accelerating losses in retail and rural loans, a drop in fee income, and additional declines in coverage. If BBDC4’s price remains below R$17.64, this may restrict minority involvement in the capital raise.
Related articles: BVMF:BBDC4
