SAO PAULO, July 20, 2026, 20:06 BRT
Banco Bradesco S.A. BVMF:BBDC4 finished Monday up 0.66% at R$18.41. The preferred stock had fallen 3.0% in the previous week. B3’s cash market was shut at the reporting deadline.
Shares changed hands on Monday at 1.08 times the book value reported in March. Inside Bradesco’s most recent earnings, the real breakdown emerges: recurring profit increased by 4.5% from the previous quarter, but client interest income after provisions declined 4.5%.
The stock faces its key August challenge with a nine-percentage-point gap. Brazil’s Selic rate is at 14.25%. Monday’s Focus survey held the median year-end projection steady at 14.00%.
The projection points to just 25 basis points of net monetary easing by December, maintaining pressure on underwriting, collections, and managing provisions. The poll’s inflation estimate for 2026 slipped to 5.15%.
Trading last week demonstrated relative resilience, but did not produce a clear breakout.
| Instrument | July 10 close | July 17 close | Weekly move |
|---|---|---|---|
| Banco Bradesco S.A. BVMF:BBDC4 | R$18.86 | R$18.29 | -3.0% |
| Itaú Unibanco Holding S.A. BVMF:ITUB4 | R$44.30 | R$41.96 | -5.3% |
| Banco do Brasil S.A. BVMF:BBAS3 | R$20.58 | R$20.49 | -0.4% |
| Ibovespa | 177,866 | 173,714 | -2.3% |
Returns are based on closing prices.
Bradesco exceeded Itaú’s performance by 2.3 percentage points but remained 0.7 point behind the Ibovespa. This trend is consistent with a recovery stock, pending further confirmation of credit improvement.
Earnings have rebounded, with first-quarter recurring net income climbing 16.1% from a year earlier to R$6.81 billion. Return on average equity increased to 15.8%.
Credit costs accelerated. Loan-loss provisions increased by 26.5%, reaching R$9.67 billion. Bradesco’s loan book expanded 8.4% to approximately R$1.09 trillion.
Client interest income after provisions reached R$9.83 billion, rising 7.7% compared to the prior year. The quarter-on-quarter drop of 4.5% continues to be the straightforward second-quarter obstacle.
Chief Executive Marcelo Noronha stated that Bradesco had “clearly expressed our moderate appetite.” He outlined a shift to a more conservative approach to lending. The bank was also looking for increased collateral.
Fitch Ratings observed in May that profitability lagged behind rivals. The near-book valuation on Monday signals an ongoing recovery process. This valuation also narrows the downside if upcoming results fall short.
The upcoming catalyst for the company has been scheduled. Bradesco’s quiet period begins on Wednesday, continuing until August 5. Second-quarter results will be released after B3 and New York markets close on that date.
In the meantime, the shares are likely to track Brazilian interest rates and local credit sentiment. The most recent Focus data provides limited hope for a swift boost from monetary policy.
Risks: Persistently elevated rates may erode the position of weaker borrowers and curb the pace of loan expansion. Any new wholesale losses or an uptick in delinquencies would prompt increased provisioning. Fiscal pressures could further push up costs for market funding.
The August assessment is limited in scope. Increased profit on its own might not suffice. Investors require post-provision client interest income to show an upward trend.
