Banco Bradesco 9M2013 Results

PR Newswire

SAO PAULO, Oct. 21, 2013 /PRNewswire/ -- The main figures obtained by Banco Bradesco (BM&FBOVESPA: BBDC3, BBDC4; NYSE: BBD, BBDO and Latibex: XBBDC) in the first nine months of 2013 are presented below:

-- Adjusted Net Income(1) for the first nine months of 2013 stood at R$9.003 billion (a 4.6% increase compared to the R$8.605 billion recorded in the same period last year), corresponding to earnings per share of R$2.84 in the last 12 months, and Return on Average Adjusted Shareholders' Equity(2) of 18.4%.

-- Adjusted Net Income is composed of R$6.264 billion from financial activities, representing 69.6% of the total, and R$2.739 billion from insurance, pension plan and capitalization bond operations, which accounted for 30.4%.

-- On September 30, 2013, Bradesco's market capitalization stood at R$136.131 billion(3), up 20.4% over the same period in 2012. As of May 2013, Bradesco common shares compose the Ibovespa index.

-- Total Assets stood at R$907.694 billion in September 2013, a 6.0% increase over the same period in 2012. Return on Total Average Assets was 1.3%.

-- The Expanded Loan Portfolio(4) stood at R$412.559 billion in September 2013, up 11.0% during the same period in 2012. Operations with individuals totaled R$127.068 billion (up 10.9% on September 2012), while operations with companies totaled R$285.491 billion (up 11.0% on September 2012).

-- Assets under Management stood at R$1.256 trillion, a 7.2% increase from September 2012.

-- Shareholders' Equity stood at R$67.033 billion in September 2013, up 1.5% on September 2012. Capital Adequacy Ratio stood at 16.4% in September 2013, 12.7% of which fell under Tier I Capital.

-- Interest on Shareholders' Equity were paid and recorded in provision to shareholders in the amount of R$3.145 billion for the first nine months of 2013, R$1.554 billion of which was paid as monthly and interim interest and R$1.591 billion was recorded in provision.

-- Interest Financial Margin stood at R$31.700 billion, up 1.1% in comparison with the first nine months of 2012.

-- 10. The Delinquency Ratio over 90 days dropped 0.5 p.p. in the last 12 months and stood at 3.6% on September 30, 2013 (4.1% on September 30, 2012).

-- The Efficiency Ratio(5) in September 2013 remained stable (42.1%) when compared to September 2012, whereas the "adjusted to risk" ratio stood at 52.5%, for a 0.6 p.p. improvement (53.1% in September 2012).

-- Insurance Written Premiums, Pension Plan Contributions and Capitalization Bond Income totaled R$35.260 billion in the first nine months of 2013, up 13.4% over the same period in 2012. Technical Reserves stood at R$133.554 billion, up 13.4% on September 2012.

-- Investments in infrastructure, information technology and telecommunications amounted to R$3.498 billion in the first nine months of 2013, up 17.9% over the same period last year.

-- Taxes and contributions, including social security, paid or recorded in provision, amounted to R$18.096 billion in the first nine months of 2013, of which R$7.039 billion referred to taxes withheld and collected from third parties and R$11.057 billion from Bradesco Organization activities, equivalent to 122.8% of Adjusted Net Income(1).

-- Bradesco has an extensive customer service network in Brazil, with 4,697 Branches and 3,760 Service Branches - PAs. Customers can also use 1,421 PAEs - ATMs (Automatic Teller Machines) in companies, 45,614 Bradesco Expresso service points, 33,933 Bradesco Dia & Noite ATMs and 14,036 Banco24Horas ATMs.

-- Payroll, plus charges and benefits, totaled R$8.143 billion. Social benefits provided to the 101,410 employees of the Bradesco Organization and their dependents amounted to R$1.991 billion, while investments in training and development programs totaled R$72.259 million.

-- Bradesco was once again included in the Dow Jones Sustainability Index, a select NYSE trading list that includes only those companies with the best sustainable development practices.

-- Bradesco BBI was among the lead managers in the raising of capital to the North-American automaker Ford, in a transaction which amounted to US$1 billion. For the first time a Brazilian bank participated as lead manager of such operation for a North-American company in the United States. BBI was also authorized by Tokyo Stock Exchange to operate in the Japanese market as manager of a yen bond offering, which makes Bradesco the first Latin-American bank to operate in the Japanese debt market.

-- Bradesco, through its subsidiary Bradesco Saude S.A., entered into an agreement that establishes the terms and conditions for a reorganization of its ownership interest held in Odontoprev, through which Bradesco Saude will acquire 6.5% of the voting capital of Odontoprev. The operation is subject to approval from the Brazilian Central Bank. After the acquisition, Bradesco Saude will hold approximately 50.01% of Odontoprev.

-- Major Awards and Acknowledgments in the period: -- Bradesco was considered the most profitable private bank in Latin America and the United States (Economatica);

-- Bradesco was considered Brazil's most valuable brand, according to 2013 ranking (Brand Finance);

-- Bradesco is the most valuable brand in Latin America (BrandAnalytics/ Millward Brown consulting firm, published in Financial Times newspaper);

-- Bradesco received the 2012 Publicly-held Company Award, promoted by Apimec. It acknowledges companies that have invested in long-term relationship and open dialogue with their investors;

-- Bradesco was granted the 2013 Highlight of the Sector Award, in the Banks and Credits category, with the best case in value creation in 2012 (Abrasca);

-- Bradesco stood out as the best Bank to Work for in Brazil (Guia 2013 Voce S/A - As Melhores Empresas para Voce Trabalhar);

-- For the seventh consecutive time, Grupo Bradesco Seguros ranked first in the Brazilian insurance company category (2012 Valor 1000 list of Valor Economico newspaper); and

-- BRAM - Bradesco Asset Management was considered the best fund manager ("Guia Exame de Investimentos Pessoais 2013" - Exame magazine).

-- With regards to sustainability, Bradesco divides its actions into three pillars: (i) Sustainable Finances, focused on banking inclusion, social and environmental variables for loan approvals and product offerings; (ii) Responsible Management, focused on valuing professionals, improving the workplace and adopting eco-efficient practices; and (iii) Social and Environmental Investments, focused on education, the environment, culture and sports. In this area, we point out Fundacao Bradesco, which has a 56-year history of extensive social and educational work, with 40 schools in Brazil. In 2013, an estimated budget of R$460.961 million will benefit 106,843 students in its schools, in Basic Education (from Kindergarten to High School and Vocational Training - High School Level), Education for Youth and Adults; and Preliminary and Continuing Qualification focused on the creation of jobs and generation of income.

(1) According to non-recurring events described on page 8 of this Report on Economic and Financial Analysis; (2) Excludes mark-to-market effect of available-for-sale securities recorded under Shareholders' Equity; (3) Number of shares (excluding treasury shares) x closing price for common and preferred shares on the last trading day of the period; (4) Includes sureties and guarantees, letters of credit, advances of credit card receivables, co-obligations in loan assignments (receivables-backed investment funds and mortgage-backed receivables), co-obligations in rural loan assignments, and operations bearing credit risk - commercial portfolio, which includes debentures and promissory notes; and (5) In the last 12 months.

Contact: Ivani Benazzi de Andrade +011-55-11-2178-6218, ) or Carlos Tsuyoshi Yamashita, +011-55-11-2178-6204, ) both of Banco Bradesco


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