Bank Bradesco SA ADR

BBD: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$8.50	Fdrk	Hfmnldcpt

Banco Bradesco Earnings: Weak Net Interest Income and High Credit Losses Pressure Results

Michael Miller

Aug 4, 2023

No-moat-rated Banco Bradesco reported weak second-quarter results as strong performance from its insurance business was offset by lower net interest income and higher credit costs in its lending arm. Net revenue decreased 16.5% from last year to BRL 19.8 billion. Recurring net income decreased 35.8% from last year but increased 5.6% from last quarter, to BRL 4.5 billion. This translates to a return on average equity of 11.1%, below the bank's historical average. As we incorporate these results, we do not expect to materially alter our fair value estimate of $3.70 per ADR share.

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