The Point for Latin America

研报英文原文证据摘录

The Point for Latin America

Point |

Thursday, 30 July 2026

Company | Industry | Strategy & Economics | Global | Key Rating and Target Price Changes

Company

Bradesco (BBDC4.SA) - Capital Raise: Opportunity or Necessity?

Bradesco announced via a communiqué a R$10bn rights offering to existing

shareholders, with controlling shareholders committing to subscribe up to R$8bn.

Management mentioned that the capital raise is intended to support its

transformation plan, including investments in technology, commercial efficiency

and business expansion, while also strengthening its regulatory capital. The bank

estimates the transaction would add ~90bp to its CET1 pro-forma ratio from

~12.7% to 13.6%, if fully subscribed. In our view, there could be three main

interpretations behind this step: i) Bradesco could be acting opportunistically

from a position of strength, taking advantage of a receptive market to enhance

capital flexibility and accelerate investments, ii) management may be seeking to

raise capital as the credit cycle continues to deteriorate and provisions remain

elevated, or iii) the potential capital increase could accelerate DTA utilization

driven by the capacity to accelerate RWA growth and generate taxable income.

Gustavo Schroden | Brian Flores, CFA | Arnon Shirazi, CFA

Santander Brasil (SANB11.SA) - Lower NII and Higher Provisions Drive Further

Earnings Cuts

We revise down our net income estimates for Santander Brasil by -16% and -7% for

2026/27, respectively, and lowered our 27YE TP to R$27.00 (from R$28.00

previously), while we reiterate our Neutral rating on the name. Our revised

estimates reflect (i) lower net interest income, mainly due to changes in the loan

mix, and (ii) a higher cost of risk due to the deterioration of the mass-market