Itaú BBA selects BTG Pactual, Bradesco, and Nubank as top banks for the latter part of the year.
Summary of the text
- Itaú BBA suggests buying Bradesco and Nubank for the second half of the year.
- BTG Pactual was chosen as the clear top choice with earnings of R $ 4.85 billion in the third quarter.
- Banco do Brasil, Santander, and Inter are being careful due to the adjusted margin reflecting increased risk.
- Bradesco is expected to increase its credit portfolio by 8% and its net interest revenue by 12%.
- Nubank’s loan portfolio reaches a peak of 37% with a Return on Equity (ROE) of 28.4%.
Banks’ stocks ended the first half of 2026 moving in various directions on the Stock Exchange.
Bradesco (BBDC4) and Nubank are top picks for Itaú BBA in the second quarter, with Banco do Brasil (BBAS3), Santander (SANB11), and Inter being suggested but with more caution due to higher risks of default.
The financial industry continues to encounter a difficult situation due to investors leaving the Brazilian market and lower expectations for third-quarter results.
Bradesco and BTG top the list of recommendations.
Bradesco is expected to report another period of expansion in its evaluation by Itaú BBA, supported by growth in the credit portfolio and higher interest revenue.
Analysts forecast a net profit of R$ 7.1 billion, representing a 16% increase compared to the previous year, along with a return on equity (ROE) of 16.1%.
The bank expects the credit portfolio to increase by around 8% compared to the previous year, with net interest revenue potentially rising by about 12%.
The cost of risk is expected to stay relatively constant, indicating better credit quality, and the insurance sector is predicted to remain a key driver of performance.
Itaú BBA considers Bradesco as an appealing mix of growth, profitability, and valuation.
The BTG Pactual (BPAC11) remains the primary standout among the banks.
Analysts say the organization’s steady profit growth is due to diversifying its business and increasing market share.
Itaú BBA predicts a net profit of R$ 4.85 billion and a return on equity of 25.3%, despite facing a challenging capital market environment.
Banco do Brasil and Santander are under pressure.
Itaú BBA has a more careful outlook on Banco do Brasil and Santander.
Banco do Brasil is expected to see restricted growth in its credit portfolio, along with elevated provisions and profitability challenges.
Analysts anticipate a net profit of R$2.9 billion, which is a 25% decrease from the previous year, along with a return on equity of 5.8%.
Santander is expected to see a more positive situation, with an increase in the loan portfolio and improvement in net interest revenue.
The top risk expense is expected to constrain the outcomes, with Itaú BBA forecasting a net profit of R$3.6 billion. This represents a decrease of about 1% compared to last year and 5% compared to the previous quarter.
Nubank needs to continue growing at the same pace.
Itaú BBA is positive about Nubank among the online banks.
Analysts believe that growing the loan portfolio will increase net interest income, and cutting credit costs could improve outcomes.
The loan portfolio is projected to grow by 37% and net interest revenue is expected to increase by around 40% in 2025.
The Desenrola program can also have a beneficial effect on the institution’s credit portfolio.
Itaú BBA forecasts a net profit of R $ 4.8 billion in this situation, representing a 33% increase compared to the previous year, along with a return on equity of 28.4%.
Inter is still met with doubt.
The Internet is still seen as the bank that triggers more carefulness among analysts.
The loan portfolio is projected to grow by 23% and revenue is expected to increase by 28%, but net profit is likely to stay almost the same.
Itaú BBA is expected to make a profit of R $ 401 million with a 15% return on equity, showing that profitability remains under pressure despite operational expansion.
- Market
- Brazilian bank
- BTG-Pactual
- Itaú BBA
- Recommendation for
- Santander
