|Bid||34.56 x 0|
|Ask||34.55 x 0|
|Day's Range||0.00 - 0.00|
|52 Week Range|
|Beta (5Y Monthly)||1.21|
|PE Ratio (TTM)||13.76|
|Earnings Date||Jan 31, 2018 - Feb 5, 2018|
|Forward Dividend & Yield||1.57 (4.58%)|
|1y Target Est||41.11|
How do we determine whether Banco Bradesco SA (NYSE:BBD) makes for a good investment at the moment? We analyze the sentiment of a select group of the very best investors in the world, who spend immense amounts of time and resources studying companies. They may not always be right (no one is), but data shows […]
Shares in Brazil's biggest lenders were down nearly 1% in early Thursday trading after the country's monetary policy committee imposed a cap on interest rates on overdraft credit, in a move likely to reduce their profits. Banks will not be allowed to charge interest rates over 150% annually, or 8% monthly, the committee said, starting on Jan. 6. Currently the average annual interest rate is roughly 306%.
(Bloomberg) -- The age of “stratospheric profits” is over for Brazilian banks because interest rates have dropped to record lows and competition from fintechs is intensifying, according to Banco Bradesco SA Chief Executive Officer Octavio de Lazari.“We never had such low interest rates in my lifetime in Brazil,” Lazari said in an interview at Bloomberg’s headquarters in New York. “We don’t know what that really means.”The nation’s benchmark interest rate tumbled this year to 5% from 14.25% in October 2016, still high compared with the U.S. rate of 1.75% and negative levels in Europe. But on an inflation-adjusted basis, Brazil’s rate is closer to 2%, pinching bank profit margins. At the same time, upstart financial-technology companies such as StoneCo Ltd. and Banco Inter SA are posing a bigger challenge to the nation’s large, established banks.Bradesco’s strategy will be to cut costs and try to gain scale and market share, generating “small profits in each of many different types of business,” Lazari said. He added that the Osasco-based company -- the nation’s second-biggest bank by market value -- opened 1.5 million new checking accounts this year.But next year could bring dark clouds. Brazilian banks’ net interest margins and loan growth could be pressured if the central bank keeps cutting interest rates and the country’s economy posts lackluster growth, according to Nathan Dean, a senior analyst for Bloomberg Intelligence. Bradesco’s profits are still booming, rising 22% to 19.2 billion reais ($4.6 billion) this year through September from 15.7 billion reais in the same period last year.Bradesco’s priority is loans to individuals, especially mortgages -- a business in which Bradesco posted a 16% increase this year. Car loans have climbed 18%, according to the bank, which has about 80 analysts using big data to gather and analyze information about clients, including credit ratings. That’s helped put Bradesco on pace to expand consumer lending 24% this year, Lazari said.Interest rates on loans to individuals are about 51% a year, still well above the benchmark Selic rate, according to the central bank.“Most personal loans are taken out at night or on weekends, and 52% of those transactions are being made by mobile devices, so they are very cheap for the bank,” Lazari said, adding that the need for brick-and-mortar outlets is decreasing.Those numbers don’t include Next, the mobile bank Bradesco created about 2 1/2 years ago to take on the growth of fintechs. Next is averaging about 8,000 new accounts a day, and Bradesco is creating a segregated unit for it and starting to look for an outside partner for the business, according to the CEO.“Money we don’t need,” he said. “What we need is a strategic partner to add value and knowledge to Next.” An initial public equity offering could also be an alternative in about three or four years, Lazari said.Credit CardsIn the credit-card payments business, Lazari said Bradesco is engaged in a “price war” to compete with tech firms such as Pagseguro Digital Ltd. and StoneCo.Bradesco is the biggest shareholder at card processor Cielo SA, with a 30% stake of voting shares. It has no intention of selling them, Lazari said.“The business has vital importance for the bank, because of my corporate clients,” he said, adding that Cielo had been “seen as an old-economy firm, and had to reinvent itself.”About 70% of Cielo’s revenue comes from its biggest clients, and the credit card processor, which has a 43% share of the market, is trying to attract more small and midsize merchants, according to Lazari. The firm sold more than 1 million new card machines this year and is gaining back market share it had lost to the newcomers, the CEO said.That success doesn’t mean a return to the golden years.“Forget it -- Cielo will never again post a 3 billion-real annual profit,” Lazari said. Instead, earnings will be closer to about 1 billion reais, “and that’s fine,” he said.“My biggest challenge is to create many assets for the bank that will give us tiny gains,” Lazari said. “There is no silver bullet anymore.”\--With assistance from Giulia Camillo and Helder Marinho.To contact the reporter on this story: Cristiane Lucchesi in Sao Paulo at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, Steve Dickson, Dan ReichlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Brazil's second largest private sector lender Banco Bradesco SA will spin off its digital bank Next by March 2020, chief executive Octavio de Lazari told analysts on Wednesday. Digital banks in Brazil, such as Banco Inter SA, are rapidly gaining clients and being priced at higher valuations than traditional banks.
Banco Bradesco SA, Brazil's second-largest private sector lender, will shut roughly 300 branches in 2020, as part of a push to tackle operating expenses that ate into third-quarter earnings, its chief executive said on Thursday. Bradesco has been posting higher-than-expected costs since the beginning of the year, falling short of its own targets and disappointing investors.
Brazilian stocks surged Tuesday after the country's Senate approved major social security reforms. Trade Brazilian stocks using these ETFs.
Lázaro de Mello Brandão, the former chairman of Banco Bradesco SA died on Wednesday at 93, after decades of building the bank into Brazil's second-largest private-sector lender. Brandão had stepped down two years ago after a 75-year career at the bank. Brandão long kept a tight grip on the lender, serving as chief executive from 1981 to 1999 and chairman from 1990 to 2017.
Lázaro de Mello Brandão, the former chairman of Banco Bradesco SA died on Wednesday at 93, after decades of building the bank into Brazil's second-largest private-sector lender. Brandão had stepped down two years ago after a 75-year career at the bank. The bank confirmed in a statement that he had passed away at a hospital in Sao Paulo.
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Brazil's second largest private lender Banco Bradesco SA is proposing an 8 billion reais ($1.95 billion) extraordinary dividend payment, it said in a securities filing on Monday. Bradesco's proposal comes as the bank has retained more capital than required by banking regulators. If approved by Bradesco's board of directors on Oct. 17, the dividend will be paid on Oct. 23.
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Backed by investors such as China's Fosun International Ltd and private equity firms General Atlantic LLC, Advent International and Warburg Pincus LLC, the newcomers have already lured more than 10% of the 2.98 trillion reais ($736 billion) invested by Brazilians in local mutual funds, stocks and bonds.
Brazil's Banco Bradesco SA beat analysts' second-quarter profit estimates on Thursday, helped by strength in consumer lending and fees, as well as a decline in loan loss provisions. Bradesco's loan book grew in the second quarter at a faster pace, expanding 8.7% year-on-year due largely to consumer loans, compared to a 3.1% rise in the prior quarter. Bradesco's second-quarter loan loss provisions fell by 0.1% from a year earlier to 3.487 billion reais.
Brazilian digital lender Banco Inter SA has hired the investment banking units of JPMorgan Chase & Co, Banco BTG Pactual, Banco Bradesco SA, Goldman Sachs and Banco Santander Brasil to manage a 1 billion-reais ($263 million) share offering, one source with knowledge of the matter said. The bank announced on Thursday that its board had approved a program to list units comprised of one common share and two preferred shares. Currently, only preferred shares in Banco Inter are listed.
Brazil's state-controlled bank Caixa Economica Federal SA is challenging a decision by corruption-ensnared conglomerate Odebrecht SA to include one of its units' foreign bondholders in its bankruptcy protection filing, according to a document filed in the court case. Among the 21 Odebrecht affiliates that filed for the bankruptcy proceeding two weeks ago was Odebrecht Finance, the issuer of $3 billion in bonds guaranteed by the group's construction unit OEC. Caixa said in the document, filed late on Monday, that Odebrecht's move to include those bondholders in the bankruptcy case was designed to reduce the voting power of other creditors.