ITUB - Banco Bradesco: It Takes Time For A Giant To Turn Around

2024-05-23 18:32:58 ET

Summary

• Bradesco's financial indicators have been heavily impacted by banking digitization and increased competition.
• The bank's managers are introducing changes to the company's structure, processes, and culture in response to these challenges.
• However, despite the discounted valuation there is still no clear inflection point in the company's results, which raises skepticism.

Investment Thesis

I recommend holding Banco Bradesco S.A. ( BBD ) shares. The process of banking digitization and increased competition has hit the bank's results hard, which presents the most depreciated financial indicators in the sector.

However, the bank's managers seem to have seen this, even if belatedly, and are making a series of changes to the company's corporate structure, processes, and culture....

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