SAO PAULO — Banco Bradesco S.A. (BVMF:BBDC4) posted a sharp gain on Friday, climbing 2.44% to R$18.05 by 12:46 p.m. BRT as trading volume swelled 25% above the daily average. The move outpaced the Ibovespa, which rose 0.83% in delayed trading, as investors piled into the stock ahead of a June interim interest on equity payment worth roughly 1.9% of the share price.
The interim payout for preferred shares is set at R$0.346894939 per share, with a record date of July 3 and payment scheduled for Jan. 29, 2027. That sum is about 18 times the regular monthly preferred interest on equity of R$0.018974809, making the stock a magnet for income-focused buyers. However, the share price still trades 17% below its 52-week high of R$21.77, despite a 24.8% rebound from the low of R$14.46.
Bradesco’s earnings base has strengthened recently. The bank reported first-quarter recurring net income of R$6.811 billion, a 16.1% year-over-year increase. Total net interest income rose 16.4% to R$20.051 billion, and the loan portfolio expanded 8.4% to R$1.090 trillion. Yet credit costs jumped sharply, with loan-loss provisions climbing 26.5% to R$9.667 billion. The credit cost ratio stood at 3.5%, while loans delinquent for over 90 days hit 4.2%.
Management has signaled a cautious but growth-oriented stance. Investor relations director André Carvalho noted in May that with the Selic rate at 14.5%, the bank is taking a “more cautious approach” but emphasized that high rates are “not a barrier to growth.” CEO Marcelo Noronha described the recovery as happening “step by step,” adding that conservative risk management does not mean a halt in activity.
The bank is pivoting toward small and mid-sized enterprises (SMEs). Alexandre Panico, executive director for the segment, told Bradesco’s investor page on June 12 that the strategy is “selective, but with appetite” and that the bank “will not be aggressive.” Secured loans now make up 60.8% of the loan book, up 3.8 percentage points over the past year, providing a buffer as SME lending expands.
Capital adequacy remains a watch point. Bradesco’s common equity tier 1 ratio slipped to 10.2% in March from 11.2% at the end of December, tightening the margin for error. Management is sticking with its guidance for loan growth of 8.5% to 10.5% by 2026. Investors must be on record by July 3 to receive the interim interest, with shares going ex-rights on July 6.
Bradesco trades at 8.03 times earnings with a 5.63% dividend yield, according to Google Finance, levels that continue to attract income buyers. But the elevated credit costs and thin capital buffer keep the stock sensitive to any signs that loan losses are either peaking or worsening. Friday’s volume surge reflects the tension between yield appeal and credit risk.
