São Paulo — Bradesco preferred shares (BVMF:BBDC4) advanced 1.06% on Monday, June 29, closing at R$18.11, as investors positioned themselves ahead of the bank's interim interest on equity (JCP) payment. The gain outpaced the Ibovespa index, which remained virtually flat at 173,355.61 points, up just 0.03%.
The move was largely driven by the upcoming JCP payout, which the board approved at R$3.5 billion in total, translating to R$0.346894939 per preferred share. Shareholders on record as of July 3 will receive the payment, with the stock going ex-rights on July 6. The payout is scheduled to be made by January 29, 2027.
The gross interim JCP represents approximately 1.92% of the R$18.11 share price. After a 17.5% withholding tax, the net amount per share is R$0.286188324, or about 1.58% of the closing price. For tax-exempt legal entities, the full gross amount applies.
Trading volume for BBDC4 on Monday reached 6.36 million shares on StockAnalysis, while Google Finance data showed a broader range of 15.88 million shares traded, with a session range of R$17.83 to R$18.25. The volume was about 54% of the 29.57 million average, suggesting the pre-ex-date carry trade was a key factor.
In addition to the interim JCP, Bradesco also declared a monthly JCP of R$0.018974809 per share, with a record date of July 1 and ex-rights on July 2, paying on August 3. Combined, the near-term entitlements yield roughly 2.02% at the current price.
The bank's U.S.-traded ADR (NYSE:BBD) also firmed, closing at $3.48, up $0.02, on volume of 3.4 million shares.
Bradesco's credit strategy remains cautious. In a recent interview, Executive Director Alexandre Panico emphasized the bank is “selective, but with appetite” for SME lending, while avoiding aggressive risk-taking. High interest rates in Brazil, with the Selic at 14.5%, continue to influence lending decisions. Investor Relations Director André Costa Carvalho noted in May that while the rate environment requires caution, it is “not a barrier to growth.”
The bank's first-quarter results showed loan-loss provisions of R$9.667 billion, up 9.5% quarter-over-quarter and 26.5% year-over-year. Return on average equity improved to 15.8%, from 15.2% in Q4 and 14.4% a year earlier.
Looking ahead, the stock's performance around the ex-rights date will indicate whether the market is pricing in additional catalysts beyond the JCP payout. If BBDC4 holds most of Monday's gain through July 6, it suggests broader optimism; a drop by the payout amount would confirm a short-term carry trade.
