What is Bradesco's problem?
In my opinion, the bank is going through an identity crisis that has lasted for years. He doesn't know who he is and what his true potential is. They don't even know what REALLY pays the bill at the end of the month.
The existential crisis is one of the worst things that can happen to individuals and also to companies.
I'm not a psychologist, but to face an existential crisis, you start by accepting who you are and looking for your deepest values. I speak with knowledge of the facts.
If, perhaps, Bradesco is so lost that it needs an analyst psychologist , allow me to offer some advice from my point of view.
Bradesco,
her story is remarkable, coming from a hard-working family. However, it is vital to understand that one cannot live solely on the past, nor can one venture indiscriminately into all financial products and markets. Trying to be excellent at everything can result in becoming a generic "duck." You swim, run and fly, but end up not truly excelling in any of these areas.
How does a duck stand out?
Being the best possible duck. In the case of Bradesco, this means finding a unique space within the "bank core" , where others are reluctant to operate. Think about it with me: Banco do Brasil specializes in Agribusiness, Caixa in Real Estate, BTG in corporate, and Itaú in high income. Why not focus on the consumption of classes B and C, becoming the reference in customer service for the Brazilian people? Over time, these customers can evolve in class, taking the bank with them. Additionally, you already know how to do this!
Finally, I can say that Bradesco has the potential to overcome the competition, not necessarily through direct competition, but rather by embracing its true identity.
Bradesco highlights several points in its quarterly report . Here are the main highlights:
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Customers:
- Offers a complete banking experience to more than 71 million customers.
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Strategic Partnerships and Global Expansion:
- It signed an exclusive partnership with Amazon to launch the first credit card in Brazil.
- Global expansion with international "My Account" accounts for withdrawals and purchases in more than 200 countries.
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Business in Wealth and Investments:
- Strengthening the wealth business, with the Ágora platform making operating fees at B3 more flexible.
- Bradesco Asset, one of the largest asset managers in Brazil, with more than R$718 billion under management.
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Digital Growth:
- The marketing strategy through digital channels boosted payroll loans (+43%), consortium sales (+88%), and insurance transactions, generating more than R$2.4 billion in 2023.
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Financial Performance:
- Net profit of R$4.6 billion in the quarter (+2.3% vs. 2Q23).
- Improvement in the default indicator over 90 days, with the credit portfolio maintaining stability.
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Financial Margin and Revenue:
- The net financial margin benefited from the reduction in PDD expenses.
- Service revenues exceeded R$9 billion (+4.1% vs. 2Q23), and insurance operations reached R$4.6 billion, with a quarterly ROAE of 23.9%.
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Sustainable development:
- Raising R$1.3 billion with IFC to expand financing to micro, small and medium-sized companies in the North and Northeast regions, with a focus on the creative industry.
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Credit
- Still feeling pressure from the credit card.