Sao Paulo, Feb 6, 2026, 11:16 (BRT) — Regular session
- Bradesco shares dip in early Sao Paulo trading following the bank’s quarterly results
- Guidance targets mid-to-high single-digit growth, with the lender relying on revenue
- Investors are focused on specifics about credit costs and expenditures linked to the bank’s restructuring
Banco Bradesco SA’s preferred shares (BBDC4) dropped roughly 4.5%, closing at 20.19 reais in Sao Paulo on Friday.
The move slapped a valuation on one of Brazil’s top lenders just hours after it revealed its strategy to boost returns in 2026. Bradesco has been working to raise profits while preventing loan losses from spiking once more.
Investors are looking beyond just one quarter, focusing instead on whether the bank can maintain stricter credit standards while continuing to grow. Expenses are also key, as Bradesco has been pouring money into a multi-year overhaul of its systems and customer service.
Bradesco posted recurring net income of 6.5 billion reais in the fourth quarter, with a return on average equity (ROAE) of 15.2%, according to its economic and financial analysis report. The bank’s full-year profit came in at 24.7 billion reais. Net interest income, the gap between earnings on loans and funding costs, climbed to 19.2 billion reais for the quarter. The 90-day delinquency ratio remained unchanged, while the cost of credit eased slightly to 3.2% from 3.3% in the previous quarter. The report also noted that transformation investments have exerted “temporary pressure” on expenses, with plans to continue investing through 2026. MarketScreener
Bradesco outlined its 2026 targets, expecting its loan book to grow between 8.5% and 10.5%, while net interest income after provisions is projected to hit 42 billion to 48 billion reais. The bank also forecast fee income to rise by 3% to 5%, with operating expenses climbing 6% to 8%. It noted these projections aren’t guaranteed and hinge on future developments.
The guidance spells out a clearer picture of what “better” means for next year but also highlights the trade-offs. Hitting higher revenue targets depends on loan growth and fee momentum, while the expense line shows the overhaul is still draining cash and management’s attention.
Bradesco’s trajectory is key for its peers since Brazilian banks often move in sync—margins, funding, and delinquencies tend to shift together as the cycle changes. It also influences the fintech battle, where pricing and service continually reshape customer choices.
There’s a downside risk. Should economic conditions worsen or defaults spike beyond forecasts, provisions could jump, squeezing ROAE sharply—even if revenue remains steady.
Bradesco’s U.S.-listed ADRs (BBD) climbed roughly 2% to $4.00 during premarket trading in New York.
The next trigger will be management’s guidance on hitting its 2026 targets, particularly around credit costs and spending tied to the transformation plan. Bradesco is set to host its earnings call Friday at 08:30 a.m. U.S. Eastern time.
