For investors looking for exposure to the Emerging Markets, Banco Bradesco SA (NYSE:BBD) is a great pick to provide both growth and income. Boasting top and bottom-line growth, great growth prospects, and a juicy 4% dividend yield, this Brazilian bank has performed very well lately in a recovering economy.
Corporate Strategy
As a financial services provider in Brazil with a diversified product offering, BBD's performance isn't driven only by demand for mortgages and consumer loans. Rather, their income from operations also includes wealth management fees, insurance sales, and banking fees. However, the success of their loan portfolio is largely dependent upon consumer spending and confidence. Brazil's economy has largely recovered from recession and consumer spending is trending upwards.
Financial Statement Analysis
BBD has definitely benefited from Brazil's rebounding economy as reflected in their sales in fiscal years 2015 and 2016. The bank posted an astounding 69% and 21% top and bottom-line growth, respectively. Furthermore, the company has consistently outperformed analyst EPS estimates the past year and actual EPS has been trending upward as seen below.
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