Sound market share in Brazil with leading positions in the banking, insurance, and asset management segments. Solid and wide client base that supports revenue generation in several business segments. Low-cost, diversified, and stable funding base. High competition in the Brazilian bank sector may pressure Bradesco's strong margins. Weak capitalization metrics due to large insurance business, despite the bank's high profitability. The positive outlook on Banco Bradesco S.A. (Bradesco) reflects the outlook on our sovereign ratings on Brazil (BB-/Positive/B). We expect the ratings on the bank to move in tandem with those on the sovereign in the next 12 months. In our view, Bradesco will continue adapting its physical branch network and investing in digital transformation in order to maintain its
