BBDO - Banco Bradesco: Q4 Earnings Ugly With Prolonged Recovery Ahead

2024-02-09 08:00:00 ET

Summary

• Banco Bradesco reported poor Q4 results, with a significant decline in net income and a contraction in client margin.
• The bank acknowledged the need for structural changes and presented a strategic plan to restore profitability.
• Despite the discouraging results, there is optimism that the worst is behind Bradesco, but caution is advised during the strategic restructuring process.
• Bradesco's current trading below 1x its P/B ratio reflects market pessimism, exacerbated by shares trading below $3.

Following my quarterly Banco Bradesco ( BBD ) coverage, the private Brazilian bank reported considerably poor Q4 results, exacerbating its struggle to regain efficiency with a notably low ("ROE"). The bank's management has acknowledged the need for structural changes in the coming years....

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