Robust Q1 Earnings for Major Brazilian Banks in 2024

In early 2024, Brazil’s top four retail banks earned a remarkable R$26.3 billion ($5.16 billion), marking a 12.4% year-over-year increase.

This rise highlights their strong strategies and the significant impact of evolving consumer trends in Asia, especially China, on global markets.

Itaú Unibanco led the pack with a 15.8% profit rise, achieving the highest return on equity (ROE) at 21.9% among its peers.

Bank of America analysts lauded Itaú for maintaining profitability despite operational challenges in Argentina and currency issues in Chile.

They commended the bank for its robust revenue generation and cost management, endorsing a buy recommendation for its stocks.

Banco do Brasil also excelled, boosting its credit offerings by 10% in March, outpacing industry norms.

Analysts praised its profitable and sustainable growth, which alleviated concerns about its financial margins and agricultural loan performance.

Santander saw the group’s largest profit increase at 41.2%, enhancing its future profitability outlook.

Bradesco BBI upgraded Santander’s stock from “underperform” to “outperform.”

They cited faster loan growth, better loan mix, higher commercial earnings, and lower risk costs as reasons—all observed this quarter.

Bradesco saw a small profit drop of 1.6% year-over-year. Despite this, JPMorgan analysts noted the bank’s credit portfolio had grown.

JPMorgan praised Bradesco for surpassing market recovery expectations and implementing effective strategic plans.

They also noted improvements in asset quality and lower provision costs, maintaining a neutral rating on the bank’s stocks.

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