02. Banco Bradesco S.A. (NYSE:BBD)
Latest TTM Net Income: $3.34 Billion
Closing price on June 26: $3.01
Banco Bradesco S.A. (NYSE:BBD) stands out as one of the most profitable penny stocks in 2025, combining a rock solid financial foundation with forward thinking innovation. With a trailing twelve month net income of $3.34 billion and a modest share price of $3.01 as of June 26, BBD offers investors a rare opportunity to gain exposure to a major Brazilian bank at a bargain valuation.
In Q1 2025, Banco Bradesco S.A. (NYSE:BBD) posted a recurring net income of BRL5.9 billion, up over 39% year over year, with an impressive Return on Average Equity (ROAE) of 14.4%. This strong profitability was driven by robust revenue across three major pillars, interest income, insurance, and fee based services.
The bank’s net interest income (NII) grew nearly 14% year over year, reaching BRL16.8 billion, supported by disciplined loan growth and high quality credit underwriting. Collateralized lending, especially in rural and real estate financing, helped maintain low delinquencies. Additionally, Bradesco’s insurance arm added major upside, with premium revenue surging over 25% and a standout ROAE of 22.4%.
On the tech front, Banco Bradesco S.A. (NYSE:BBD) is aggressively modernizing its operations. With over 1,400 new tech hires and extensive use of Generative AI (GenAI) across customer service and internal productivity tools, the bank is streamlining operations and expanding digital reach.
Cost discipline is another highlight. Despite significant transformation investments, operating expenses were kept in check and even fell 8.6% quarter over quarter. Meanwhile, the bank continues to prune underperforming branches and scale its digital ecosystem.
With strong earnings momentum, high credit quality, innovative tech adoption, and shareholder focused strategies, Banco Bradesco is in a suitable position for long term growth. At just over $3 per share, Banco Bradesco S.A. (NYSE:BBD) offers an attractive risk reward profile for investors looking to tap into one of the most profitable penny stocks in emerging markets.