Banco Bradesco's 16% Earnings Yield Is Not So Attractive Amid Its Challenges

Group 1 - Banco Bradesco reported 4Q24 results that show a lack of positive performance compared to peers, particularly in loan growth and net interest income (NII) [1] - The bank's loan growth continues to lag behind its competitors, with NII growth not keeping pace with loan growth [1] - Expenses are increasing at a rate higher than both NII and fees, indicating potential operational inefficiencies [1] Group 2 - The analysis emphasizes a long-only investment strategy, focusing on operational aspects and long-term earnings potential rather than market-driven dynamics [1] - The approach suggests that only a small fraction of companies should be considered for buying at any given time, with most recommendations being holds [1]