BBD Earnings Prediction
The chart below shows how BBD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BBD sees a -1.31% change in stock price 10 days leading up to the earnings, and a -0.20% change 10 days following the report. On the earnings day itself, the stock moves by -0.81%. This data can give you a slight idea of what to expect for the next quarter's release.
BBD Key Earning Data
2024/Q4
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BBD Earnings Analysis
Banco Bradesco SA Corporation (BBD.N) Earnings Conference Call
Positive
Net Income Growth: Net income for Q4 2024 reached BRL5.4 billion, representing a 37% increase, while the full year net income was BRL19.6 billion, marking a 20% growth year-on-year.
Revenue and Income Growth: Total revenue grew to over BRL32 billion, reflecting a 7.9% year-on-year increase, with net interest income (NII) up by 5.4% and fee and commission income also growing by 7.9%.
Loan Portfolio Expansion: The total loan portfolio expanded to over BRL980 billion, achieving nearly 12% growth year-on-year, with significant increases in micro, small, and medium-sized company loans by 28%.
Insurance Segment Performance: The insurance segment reported a net income of BRL2.5 billion for Q4 2024, contributing to a total of BRL9.1 billion for the year, with a return on average equity (ROAE) of 21%.
Share Buyback Program: A share buyback program was initiated, resulting in the repurchase of approximately 50 million shares, with plans to cancel close to 1% of the bank's shares, enhancing shareholder value.
Negative
Loan Portfolio Growth Analysis: Total loan portfolio growth was 12% year-on-year, but the high-risk portfolio grew by 28%, indicating a potential increase in credit risk exposure.
Increased Loan Loss Provisions: Expanded loan loss provisions increased by BRL400 million to BRL7.5 billion, reflecting a cautious approach to potential defaults amid economic uncertainty.
Rising Operating Expenses: Operating expenses grew by 9.3% year-on-year, and when excluding Cielo, the growth was still significant at 6.9%, indicating rising costs despite efforts to control them.
Cautious Growth Outlook: The guidance for 2025 reflects a more cautious outlook due to anticipated economic impacts, suggesting potential challenges in maintaining growth momentum.
Net Income Growth Concerns: The net income growth of 20% in 2024 was supported by non-recurring provisions, which may not be sustainable in future periods, raising concerns about ongoing profitability.
BBD FAQs
How does BBD typically perform around its earnings report dates?
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BBD Earning Call Sentiment
Banco Bradesco S.A. (NYSE:BBD) Q4 2024 Earnings Call Transcript
BBD.N
-1%Positive
Despite some concerns in the Q&A regarding hedging strategies and vague management responses, the overall earnings call is positive. Strong financial performance with significant net income and revenue growth, a strategic share buyback program, and optimistic guidance on loan portfolio and insurance growth support this. The bank's cautious credit management and capital buffer further enhance stability. However, increased loan loss provisions and competitive pressures are noted but do not overshadow the positive aspects, leading to a likely 2-8% stock price increase.
