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(Bloomberg) – Analysts are eagerly awaiting the release of the next Bradesco results (BBDC3, BBDC4).
The second largest bank in Latin America in terms of market value should benefit from the credit recovery in Brazil, standing out from Itaú (ITUB4) and other competitors such as Banco do Brasil (BBAS3 ), badysts said.
"Bradesco will probably lead the sector with a solid fourth quarter and optimistic forecasts for 2019," Itaú BBA badysts, led by Thiago Bovolenta Batista, wrote in a report on 20 January. Itaú BBA estimates that Bradesco's recurring net income will grow by 15.8% on an annual basis and return on average recurring capital will reach 19.2%, due to higher loan revenues and stable credit risk [19659004] Bradesco's balance sheet will be published on 31 January, just after the start of the bank's earnings season (Santander Brazil (SANB11).
Brazilian banks are benefiting from increased demand for credit, while In November, the country's credit volume reached 3.2 trillion rand, while the corporate default rate fell to 3 percent, according to data from the central bank.
A sharp decline Provisioning expenses for bad debtors will also help, badysts at Santander Brasil said. "Bradesco may well be the highlight of the quarter, given the positive expectations for improved performance. the quality of the badets, "wrote Henrique Navarro, Olavo Arthuzo and Isabella Nasuno in a report dated 11 January.
Double-digit earnings growth in 2019, Luis Azevedo and Silvio Doria, badysts at Safra, believe that multiples of the sector already reflect these more promising prospects. Citigroup also claims that equities are not cheap, but that economic reforms in Brazil could provide additional leverage.
"Positive news about congressional leadership and key reforms can generate favorable risks from 2020 and also reduce discount rates," Citigroup badysts Jorg Friedemann and Gabriel Nobrega said in a statement. report of 9 January.
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