The Spanish bank took the Brazilian second place among the most profitable in the country, behind Just Itau
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January 31, 2019, 07:06 – Posted on January 31, 2019, 06х42
Oh Brady, the country's second-largest private bank, announced the results of the fourth quarter of 2018 on Thursday, with high expectations.
After Santander surprised the market yesterday, announcing that the return on equity (ROE) rose to 21.1%, investors want to know if Bradescu is even behind in ranking the profitability of financial institutions.
Santander took second place at Bradesco in the second quarter of 2018, when her return rose from 16.1% the previous year to 19.5%. Brazil's ROE ROE increased from 18.1% to 18.4% over the same period.
According to analysts of the investment bank Itau BBA, Tiago Bouwanta Batista, Tiago Binsfeld and Alexander Spada, the profitability of Bradesco in the period from October to December 2018 was supposed to reach 19.2%.
Returns of capital is one of the key indicators taken into account by investors in the stock market when deciding which stocks to buy.
While its ROE is growing, Santander has attracted shareholders willing to pay more for its role. Last year, Santander's share rose 33.6 percent, closing 48 reais yesterday, while Bradesco's preferred stake gained 17 percent to 42.84 reais and Ibovespa, the main index of the share of the local market, advanced 16% 8% 94,133 points.
"Santander has announced outstanding results that they set in the first division of the Brazilian banking market, along with the eternal Itau and Bredescu," analysts at BTG Pactual, Eduardo Rossman and Thiago Kapulsky explain in a report to the clients.
However, Bradesco, along with Banco to Brazil, is the main indication for Itaú BBA analysts for the momentum.
"Bradesco is expected to announce another quarter of solid results with good margins and stable risk," analysts report in the report. Bradesco's profit margin is expected to decline from 4.1% to 3.9% in the last three months of 2017 and the same period of 2018, while reservations for suspicious accounts are expected to decline by 13.6% 3.38 billion euros. real.
At the beginning of the month, Bradsko changed the leadership, reducing the number of deputy prime ministers from six to four in order to get agility in the fight with Santander.
Apart from the rivals, all Brazilian banks benefit from the recovery in the credit market.
Loans rose by 5.5% in the country in 2018, loans to individuals jumped by 8.6%, and corporate loans increased by 1.9%, according to Central Bank data released on January 29. This year, the total volume of loans in the system is expected to reach 9%, according to the accounts of the investment consultancy Lopes Filho.
The expected acceleration of the recovery of the economy this year should also help to improve the quality of the bank's results, with benefits not only in financing, but also in the sale of other products, such as insurance and investment tools, according to Joao Augusto Frota Sales, an analyst at Lopez Filho, in the report.
Itau, an industry leader, announces his figures on February 4th. Its ROE in the third quarter of 2018 was 21.3%. With the improvement of the economic scenario for all banks, the dispute at the top of this market should be more and more violated.