Core Viewpoint - The current stance on Banco Bradesco (BBD) is HOLD, indicating a cautious approach towards the stock at this time [1]. Company Analysis - The investment strategy focuses on wealth preservation, income generation, and long-term appreciation [1]. - The national portfolio consists of carefully selected Brazilian stocks and real estate funds, while the international portfolio includes ETFs that provide global coverage [1].

Core Insights - Banco Bradesco's stock rose by 4.28% to $4.14, likely driven by expectations of interest rate cuts in Brazil, with current rates near 15% and a central bank meeting scheduled for January 28th [1][3] - The trading volume for Banco Bradesco reached 60.8 million shares, significantly above its three-month average of 34.5 million shares, indicating strong investor interest [1] - The bank's share price has increased by approximately 115% year-on-year, and it plans to strengthen its fixed income team to capture more market share [4] Market Performance - The S&P 500 index rose by 0.41% to close at 6,978.60, while the Nasdaq Composite increased by 0.91% to 23,817.10, reflecting overall market strength [2] - Other Brazilian banks also saw gains, with Itaú Unibanco up 4.65% to $8.78 and Banco Santander rising 4.57% to $7.10, indicating a positive trend across the banking sector [2] Economic Context - Brazil's inflation data for January was slightly below expectations, leading economists to predict a reduction in the Selic rate from 15% to 12.25% by the end of the year, with easing expected to begin in March [3]

Company Performance - Bradesco's shares have increased by 635% this year, outperforming other major Brazilian retail banks [1] Leadership & Strategy - Marcelo Noronha is leading adjustments at Bradesco two years after taking command [1]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Banco Bradesco (BBD) - Banco Bradesco currently holds a Momentum Style Score of B, indicating potential as a solid momentum pick [3][12] - The company has a Zacks Rank of 2 (Buy), which is associated with strong historical outperformance when combined with a Style Score of A or B [4] Performance Metrics - Over the past week, BBD shares increased by 0.9%, while the Zacks Banks - Foreign industry rose by 1.44% [6] - In a longer timeframe, BBD's monthly price change is 8.49%, significantly outperforming the industry's 1.31% [6] - Over the last quarter, BBD shares have risen by 18.97%, and over the past year, they are up 42.56%, compared to the S&P 500's increases of 10.25% and 21.04%, respectively [7] Trading Volume - BBD's average 20-day trading volume is 59,999,624 shares, which serves as a bullish indicator when the stock is rising with above-average volume [8] Earnings Outlook - Recent earnings estimate revisions for BBD show positive momentum, with 2 estimates moving higher for the full year, raising the consensus estimate from $0.41 to $0.43 [10] - For the next fiscal year, 2 estimates have also increased, with no downward revisions noted [10]

Core Insights - Banco Bradesco (BBD) experienced an extraordinary surge in options trading, with total options volume reaching 273,027, nearly 21 times its average 30-day volume, marking the highest single-day number in the past two years [2][4] - The unusual options activity was characterized by five active call options, with the Nov. 21 $3.50 call standing out due to its high volume-to-open-interest (Vol/OI) ratio of 58.57, indicating strong investor interest [3][5] - BBD stock has seen an impressive increase of 84% in 2025, suggesting potential for further growth in this low-priced emerging market stock [3] Options Activity - The total options volume for Banco Bradesco on the day was the highest in two years, nearly five times the second-highest daily volume, with no put volume recorded [4][5] - Call options accounted for 75% of the total volume, with the stock price fluctuating between $3.44 and $3.55, closing in the money at $3.52 [5][6] - There were 20 trades of 1,000 or more contracts on the $3.50 call, which represented 42% of the total call volume, with the largest single trade being 32,400 contracts [6]

Financial Data and Key Metrics Changes - The company experienced a significant decline in demand deposits and saving deposits, which may be related to a reduction in footprint [6]. Business Line Data and Key Metrics Changes - The company continues to deliver strong results in the insurance segment, particularly in health insurance, where earnings have doubled compared to last year [6]. Market Data and Key Metrics Changes - The current market share in demand deposits and saving deposits was questioned, indicating a need for clarity on the company's position in these areas [6]. Company Strategy and Development Direction - The strategic plan includes a potential increase in market share in loans from 14% to a target range of 15% to 19%, although current market share remains stable [8]. Management's Comments on Operating Environment and Future Outlook - Management discussed the importance of focusing on more profitable segments rather than solely increasing market share, suggesting a balanced approach to profitability and growth [8]. Other Important Information - No additional significant information was provided in the available content. Q&A Session Summary Question: Decline in Demand and Saving Deposits - Analyst Carlos Gomez-Lopez inquired about the decline in demand and saving deposits and its relation to market share [6]. Question: Sustainability of Insurance Earnings - Carlos Gomez-Lopez also asked about the sustainability of the strong results in health insurance, where earnings have significantly increased [6]. Question: Market Share and Profitability - Analyst Tito Labarta questioned the importance of increasing market share in loans for improving profitability, given the current stable market share [8].

Financial Data and Key Metrics Changes - The company reported a year-over-year decrease in margin finance, indicating potential challenges in maintaining profitability [1] - There was a significant decline in demand deposits and saving deposits, raising concerns about the company's funding structure [7] Business Line Data and Key Metrics Changes - The company is experiencing growth in certain segments, particularly in secured lines, while other segments are not growing as expected [9] - The management is considering increasing risk appetite in segments where growth has been stagnant [9] Market Data and Key Metrics Changes - The company’s market share in loans has remained relatively stable, with a target to increase from 14% to potentially 19% [9] - The management is evaluating the importance of market share in relation to profitability, suggesting a potential shift in focus towards more profitable segments [9] Company Strategy and Development Direction - The strategic plan includes a focus on increasing market share in profitable segments while managing risk in less profitable areas [9] - The company is also looking to enhance its operational efficiency and control over asset-liability management [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by a reduction in footprint and its impact on deposits [7] - There is a positive outlook on the sustainability of earnings in health insurance, which have doubled compared to last year [7] Other Important Information - The company is actively working on improving its value proposition across different segments [5] - There is an emphasis on digitization and operational efficiency as part of the company's growth strategy [1] Q&A Session Summary Question: Concerns about funding and deposit decline - The management addressed the decline in demand and saving deposits, linking it to the reduction in footprint and discussing current market share [7][8] Question: Growth strategy and market share - The management discussed the importance of increasing market share for profitability and the potential focus on more profitable segments [9]

Financial Performance - Recurring net income reached R$6.2 billion in 3Q25, showing a 2.3% increase compared to 2Q25 and an 18.8% increase year-over-year[3] - ROAE was 14.7% in 3Q25, a 2.3 percentage point increase year-over-year[3] - Total revenue reached R$35.0 billion in 3Q25, with a 3.0% increase compared to 2Q25 and a 13.1% increase year-over-year[7] - Net Interest Income (NII) was R$18.7 billion in 3Q25, up 3.7% quarter-over-quarter and 16.9% year-over-year[7] - Fee and commission income reached R$10.6 billion in 3Q25, showing a 2.8% increase compared to 2Q25 and a 6.9% increase year-over-year[7] - Income from Insurance, pension plans and capitalization bonds was R$5.7 billion in 3Q25, with a 1.0% increase compared to 2Q25 and a 13.0% increase year-over-year[7] Loan Portfolio - The expanded loan portfolio totaled R$1,034 billion in Sept25, a 1.6% increase quarter-over-quarter and a 9.6% increase year-over-year[10] - Loan portfolio for individuals reached R$451.6 billion[15] - Loan portfolio for micro, small and large corporate reached R$ 241.1 billion[13] - The restructured portfolio decreased, while the secured portfolio grew in representation[3]

Core Insights - Banco Bradesco S.A. has been upgraded by Goldman Sachs from Sell to Neutral, with a new price target of R$17, reflecting improved capital generation and earnings momentum [3]. Financial Performance - In Q2 2025, Banco Bradesco reported revenue of R$34.0 billion, a 15.1% year-over-year increase, driven by strong performance in net interest income, fees, commissions, and insurance income [4]. - Net interest income for the quarter reached R$18.0 billion, marking a 4.7% increase from the previous quarter and a 15.8% increase year-over-year [4]. Dividend Information - Banco Bradesco offers a monthly dividend to shareholders, with a current dividend yield of 7.05% as of October 28 [5].

Core Viewpoint - The analyst maintains a buy recommendation on Bradesco shares (NYSE: BBD) in the Q3 earnings preview, continuing coverage that began on May 23, 2024, highlighting the firm's extensive experience in equity analysis in Latin America [1]. Company Summary - Bradesco is positioned positively in the market, with the analyst emphasizing the importance of in-depth research and insights to aid clients in making informed investment decisions [1].