São Paulo, July 10, 2026, 15:08 (BRT)
Banco Bradesco S.A. BVMF:BBDC4 preferred stock was up 4.0% at R$18.72 in afternoon trading on Friday. Its common shares BVMF:BBDC3 rose 4.6% to R$16.42. The R$0.72 moves for both classes of stock lift the bank’s total market value by about R$7.6 billion, based on outstanding share numbers.
The increase was bigger than what a payout change would cause. BBDC4 rose R$0.72, about 2.1x the R$0.3469 gross intermediate interest-on-equity payout Bradesco set for each preferred share. That went ex on July 6. In Brazil, interest on equity is a cash payout to shareholders.
Traders shifted their bets on Brazil’s rate outlook after the latest inflation data. The IPCA consumer-price index climbed 0.16% in June, missing the market’s 0.31% call and dropping from 0.58% in May. Annual inflation slowed to 4.64%, backing calls for another cut in the Selic policy rate.
Bradesco traded ahead of both the main market and two big home rivals in the afternoon.
| Share or index | Price/level | Day change | Lead over Ibovespa |
|---|---|---|---|
| Banco Bradesco preferred BVMF:BBDC4 | R$18.72 | +4.00% | 1.35 percentage points |
| Itaú Unibanco preferred BVMF:ITUB4 | R$44.05 | +3.43% | 0.78 percentage point |
| Banco do Brasil BVMF:BBAS3 | R$20.58 | +2.90% | 0.25 percentage point |
| Ibovespa | 177,315.31 | +2.65% | — |
Rates dropped hard. Mirae Asset said futures now price in a 90% chance of a quarter-point Selic cut in August, up from 68% on Wednesday. Brazil’s fixed-rate 2029 Treasury bond yield lost 19 basis points to 14.04%. One basis point equals one-hundredth of a percentage point. Gabriel Pestana, senior economist at Genial Investimentos, said the inflation data was “good news for monetary policy.” InfoMoney
Matheus Pizzani, economist at PicPay, said the report “reinforces our expectation of another cut” of 25 basis points and sees the easing cycle taking the Selic to 13.50%. The central bank lowered the rate to 14.25% on June 17. Bloomberg Línea Brasil
Bradesco shares saw a bigger move than Itaú. The bank’s trailing price-to-earnings ratio is still about 23% below Itaú’s. But Bradesco’s operating returns and asset quality are behind too: first-quarter recurring ROAE was 15.8%, compared to Itaú’s 24.8%.
| Investor measure | Bradesco | Itaú | Bradesco gap |
|---|---|---|---|
| Trailing price-to-earnings ratio | 8.33 times | 10.85 times | 23% lower |
| First-quarter recurring ROAE | 15.8% | 24.8% | 9.0 percentage points lower |
| Loans more than 90 days past due | 4.2% | 1.9% | 2.3 percentage points higher |
Bradesco posted a recurring profit of R$6.81 billion for the first quarter, up 16.1%. That’s the ninth straight quarter earnings grew. Its expanded loan book hit R$1.09 trillion, a gain of 8.4%. Credit cost rose to 3.5% on the back of some specific wholesale issues and pricier retail. The bank is set to announce second-quarter numbers August 5, so Friday’s rerating faces a quick check.
The lower-rates trade isn’t locked in. Annual inflation is 4.64%, still above the central bank’s 4.5% limit, and the June number doesn’t include the oil move up to almost $80 a barrel this week. SulAmérica Investimentos chief economist Natalie Victal said policymakers should exercise “maximum caution” given fiscal pressures and the run-up to elections. A new energy price shock or a weaker real could push rate cuts back and keep Bradesco’s loan losses high. InfoMoney
Bulls are looking for two things at once from Friday’s rally: lower rates in Brazil and progress with Bradesco’s fix-up. Shares still trade at a discount, so there’s more upside if the August rate call and Q2 credit numbers come through.
