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The Spanish bank took second place in Brazil among the most profitable in the country, behind only Itaú
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[Bradesco]
Logo of Bradesco (Adriano Machado / Bloomberg) 19659008] Bradesco the second largest private bank in the country, announces its results for the fourth quarter of 2018 on Thursday with a lot of money. hope.
After Santander Brasil, surprised the market yesterday by announcing (ROE) reached 21.1%, investors want to know if Bradesco has fallen behind in the ranking of profitability of financial institutions.
Santander borrowed from Bradesco's second position on this list in the second quarter of 2018, when its yield went from 16.1% a year earlier to 19.5%. The ROE of the Brazilian competitor rose from 18.1% to 18.4% over the same period [19659009] According to the calculations of inverse banking badysts Itaú BBA Thiago Batista Bovolenta, Tiago Binsfeld and Alexander Spada, the Bradesco's profitability for the period from October to December 2018 must have reached 19.2%.
Return on equity is one of the most important indicators that stock market investors consider when choosing stocks to buy.
As his ROE increases, Santander has attracted shareholders willing to pay more for his role. Last year, Santander's share rose 33.6%, closing at 48 reais yesterday, while Bradesco's preferred stock gained 17% to 42.84 reais and Ibovespa, the main index shares in the local market, up 16%. "Santander has announced excellent results, which placed it in the first division of the Brazilian banking market, alongside the eternal heavyweights Itaú and Bradesco", Eduardo Rosman and Thiago Kapulskis, badysts at
Bradesco remains, with Banco do Brasil, the main indicator of badysts Itaú BBA for investors at present.
"Bradesco is expected to announce another quarter of solid results with good margins and stable cost of risk," badysts said in a report. Bradesco's profit margin is expected to decrease from 4.1% to 3.9% between the last three months of 2017 and the same period of 2018, while the provision for bad debts is expected to decrease by 13.6% to 3.38 billion d & # 39; euros.
Earlier this month, Bradesco changed direction and reduced the number of vice presidencies from six to four in order to gain agility in the fight against Santander.
Apart from rivalries, all Brazilian banks. benefit from the recovery of the credit market.
Loans rose 5.5% in the country in 2018, loans to individuals jumped 8.6% and business loans rose 1.9%, according to the data. from the central bank disclosed on January 29. The expected acceleration of the economic recovery this year should also help improve the quality of bank results, according to João Augusto Frota Salles, an badyst at Lopes Filho, in a report
Itaú, leader of the industry , with an increase in profits not only in terms of financing, but also in sales of other products, such as insurance and investment tools. their numbers on February 4th. Its ROE in the third quarter of 2018 was 21.3%. With the improvement of the economic scenario for all banks, the conflict at the top of this market should be increasingly tainted.
