SÃO PAULO – Bradesco (BBDC4) exceeded all reported analyst estimates by reporting recurring net profit of R $ 5.8 billion in the final quarter of 2018, number 19.9% up from the same period of 2017.
The result was 5% up on the market consensus, according to XP, and exceeded the highest estimate registered by Bloomberg, at R $ 5,7 billion. In the year, the net profit was R $ 21.56 billion.
For XP analysts, the numbers were favorably received by the market, just like the forecasts highlighted in the report of the results. "We reiterate the appointment as our favorite name among private banks and our recommendation of Purchase," we wrote. Or Itaú BBA also encouraged: "As Margens were a positive surprise," said analyst Thiago Bovolenta.
Another highlight was the ROE (return on patrimony, used to measure the growth capacity of the company as the assets that it already has). The indicator stood at 19.7% in the quarter, and 19.0% – versus 18.1% in 2017.
According to the bank's results report, profits are reflected in the performance of the operating result, driven by the performance of the financial margin and the expenses as provisions (expanded PDD). Loans are also credited to the "positive performance" of the services and results revenues, such as insurance, precautionary and capitalization transactions.
Positive vision for the future
The administration of the bank said that the position of the country in 2019 is "favorable to acceleration of growth, including as financial conditions but beneficial." The bank expects advance of up to 13% for the loan portfolio, up from 7.8% in 2018. This would be the biggest increase since 2014.
"Inflation and interest in reduced lows, families and businesses, low defaults rates and space for expansion of demand, we constitute propitious vectors for a more intense growth in 2019," says Bradesco in the report. " All serious factors, credited by the bank, "we must be empowered in the resumption of the agenda of structural reforms, as well as positive impacts on the confidence of entrepreneurs and consumers."
Invest in issues like ZERO brokerage fee Clear. Click here and open your account.
The bank is also concerned about the application of what it calls "economic and sustainable economic policies." In the report, write that it is "fundamental" that "Brazil advances in its agenda, including macro and microeconomic aspects, preparing for an international environment that will continue to be challenging in the coming quarters."
Is it ação?
Bradesco is the favorite schoolboy in the pool of private banks for some of the specialists who are in charge of the setor. Além da XP, the bank analysts of the Itaú BBA mentioned.
In the comparison with other banks, Bradesco is "behind" in the price statement of earnings (P / L), indicate the reports. The company's papers were traded at 11.3 times their profit, a 9% discount in relation to the main competitors, Itaú and Santander.
Disclosed on the fourth day, the balance of Santander disappointed the market, and stocks dropped 2.04%. This may even call attention to the competitor. In the year, Bradesco's share accumulates high of 10.89%.