INSUBCONTINENT EXCLUSIVE:
Bradesco, a titan of Brazilian banking, has weathered a storm in 2024
This decline tells a story of challenges and attempted comebacks in a volatile market.The troubles for Bradesco began in late 2022
Rising default rates and shrinking profits plagued the bank
By the third quarter of 2023, its return on equity had fallen to a dismal 9.5%
These issues forced Bradesco to take decisive action.Management implemented a series of changes to right the ship
They scaled back risky lending and closed unprofitable branches
The bank also shifted focus to more lucrative financial products
These efforts bore fruit in the second quarter of 2024.Bradesco surprised analysts with a robust profit of R$5.2 billion or $870 million in
This news sparked a rally, sending the stock soaring 30% between July and September
While improvements continued, they fell short of market expectations
The broader economic picture also darkened
made it particularly vulnerable to high rates
As a result, the stock price tumbled 23% from its September peak
By December 9, 2024, it had erased all gains from the earlier rally.The bank now trades at a price-to-book ratio of 0.8 and a
price-to-earnings ratio of 5.6
These figures suggest the stock may be undervalued
He emphasizes a gradual recovery process, noting improvements across all customer segments
They set a target price of R$17, implying a 30% upside
of 14% and profits of R$23.9 billion for Bradesco
These figures suggest a potential turnaround
However, significant challenges remain on the horizon.Bradesco Stock Plummets 26% in 2024 Amid Recovery Efforts
(Photo Internet reproduction)The bank must navigate uncertain economic waters
High interest rates could continue to pressure lending and asset quality
Competition from nimble fintech companies poses an ongoing threat to traditional banks like Bradesco.Execution risk also looms large
present an opportunity for patient investors
It highlights the impact of economic policies on banking performance
finance.bradescos-rollercoaster-a-tale-of-struggle-and-resilience-in-brazils-banking-sector.mp4?#Size: 74.87 Mb
