Banco Bradesco's preferred shares traded lower in São Paulo on Monday, falling 0.4% to 20.52 reais, as investors turned their focus to an upcoming shareholder meeting that will decide on significant capital and governance matters. The bank's American Depositary Receipts (ADRs) also slipped 0.3% in U.S. premarket trading to $3.98.
Shareholder Vote on Capital and Governance
The bank has scheduled a special shareholder meeting for March 10 to vote on a 6.67 billion real capital increase, which would bring total share capital to 93.77 billion reais. This increase would be achieved through capitalization of legal reserves, meaning no new shares would be issued. The agenda also includes proposed bylaw amendments to allow management profit sharing and approval of the 2025 profit allocation plan, which outlines approximately R$14.5 billion in total interest on shareholders' equity payments.
2026 Financial Targets
In a separate filing, Bradesco outlined its 2026 financial objectives, aiming for expanded loan book growth between 8.5% and 10.5%. The bank projects net interest income after provisions in the range of 42 billion to 48 billion reais, with fee and commission income expected to increase 3% to 5%. Operating expenses are forecast to rise 6% to 8%, according to documents signed by investor relations officer Andre Costa Carvalho.
Chief executive Marcelo Noronha emphasized that spending increases represent part of a broader multi-year transformation, noting a 22% jump in technology costs for 2025 during the bank's earnings call. "We will continue to invest to increase our competitiveness," Noronha stated.
Market Focus and Risks
Traders are closely monitoring whether revenue growth outpaces cost increases and how credit losses develop. The capital restructuring, while not bringing new cash into the bank, could affect future distribution capacity and has drawn investor scrutiny regarding management incentive changes.
Market observers note that Bradesco's guidance bands could face pressure if delinquencies rise or funding costs increase, potentially impacting payout expectations. The March 10 vote outcome will determine the implementation of both the capital hike and governance modifications, with traders prepared to react to any signals regarding cost trajectories, credit outlook, or remaining 2025 payout details.
