Bradesco Q3 Earnings Preview: Expectation Of Further Improvements

Bradesco is rated a 'buy' ahead of its Q3 2025 earnings, with analysts anticipating resilient credit growth and effective non-performing loan (NPL) control despite a challenging macroeconomic backdrop. Projections include a BRL 1.04 trillion credit portfolio, stable NPLs at 4.1%, and 16.9% year-over-year Net Interest Income (NII) growth, supporting a target valuation of 1.2x Price-to-Book.

Analysis

Bradesco (BBD) is currently rated as a 'buy' ahead of its Q3 2025 earnings, predicated on analyst expectations of resilient credit growth and effective non-performing loan (NPL) control, even amidst a challenging macroeconomic backdrop. Key projections include a credit portfolio reaching BRL 1.04 trillion and a significant 16.9% year-over-year Net Interest Income (NII) growth, signaling strong operational momentum and revenue generation capacity.

The bank is also anticipated to maintain robust risk management, with NPLs expected to remain stable at 4.1%. This stability in credit quality, alongside continued credit expansion, underpins the positive outlook. The analyst's target valuation of 1.2x Price-to-Book (P/B) suggests potential upside, especially considering the company's historical trading patterns above this level.

Overall sentiment surrounding Bradesco is strongly positive and bullish, reflecting confidence in its upcoming earnings report and underlying business strength. This favorable outlook, supported by specific growth and stability metrics, presents a compelling investment thesis for the near term, particularly given the anticipated strong performance in core banking metrics within a complex market environment.

Key Decisions for Investors

• Investors should consider the analyst's 'buy' rating and the projected 16.9% NII growth as primary indicators of potential upside in Bradesco's upcoming earnings.
• It is prudent to monitor the actual Q3 2025 earnings release for confirmation of the BRL 1.04 trillion credit portfolio and 4.1% NPL stability, as these metrics are critical to validating the positive thesis.
• Evaluate Bradesco's current valuation against the 1.2x P/B target, taking into account its historical trading range to assess the attractiveness of entry or adjustment to existing positions.