Market value fell 31%. The financial institution, which started the year worth R$172.227 billion, dropped to R$138.76 billion in February and, on April 30, was worth R$140.545 billion, according to Elos Ayta.
Shares have been down since the beginning of the year. In 2024, while the Ibovespa shrank by 6.16%, BBDC4 fell by 17.66%, according to Elos Ayta.
Why so much fall?
Throughout 2023, the bank had been presenting results below expectations, mainly due to default. It peaked in June. Short-term defaults (15 to 90 days) reached 4.4% in June, compared to 4.6% in March and 3.6% in June 2022. For individuals, the numbers were 5.3% , 5.5% and 4.9%. In the case of large companies, the values were 1.3%, 1.4% and zero.
Therefore, the bank’s provisions for losses grew. A bank needs to have savings to cover these losses, provisions for bad loans (known by the acronym PDD — Provision for Doubtful Debts). In the second half of 2023 they reached R$10.32 billion. They grew 8.4% compared to the first quarter of 2023.
Therefore, Bradesco presented a strategic plan in February. For the next five years, the idea is to return to profitability and make its decision structure more agile.
