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Bradesco - 1Q18 Results

SAO PAULO, April 27, 2018 /PRNewswire/ -- Banco Bradesco (B3: BBDC3, BBDC4; NYSE: BBD, BBDO; e Latibex: XBBDC) announces today its results for the first quarter of 2018 (1Q18). Please refer to the information below.

The main figures reported by Bradesco are as follows:


Variation%
(unless other wise
stated)







R$ million (unless otherwise stated)

1Q18

4Q17

1Q17

1Q18 x 4Q17

1Q18 x 1Q17













Result






Recurring Net Income (1)

5102

4,862

4,648

4.9

9.8

Net Interest Income

15,686

15,813

16,036

(0.8)

(2.2)

Expanded ALL (2)

(3,892)

(5,405)

(5,282)

(28.0)

(26.3)

Fee and Commission Income

7,831

8,062

7,430

(2.9)

5.4

Insurance Written Premiums, Pension Plan Contributions and Capitalization Bond Income

17,570

21,192

17,948

(17.1)

(2.1)

Statement of Financial Position






Total Assets (3)

1,303,842

1,298,328

1,294,139

0.4

0.7

Expanded Loan Portfolio (4)

486,645

492,931

502,714

(1.3)

(3.2)

- Individuals

177,814

175,469

171,820

1.3

3.5

- Companies

308,831

317,462

330,894

(2.7)

(6.7)

Shareholders' Equity

113,776

110,457

104,558

3.0

8.8

Assets under Management

2,003,948

1,987,487

1,943,687

0.8

3.1

Highlights






Annualized Return on Average Equity (ROAE) - % (5)

18.6

18.0

18.3

0.6 p.p.

0.3 p.p.

Efficiency Ratio (ER) - % (6)

40.9

40.8

40.0

0.1 p.p.

0.9 p.p.

Recurring Net Income per Share - R$ (6) (7)

2.91

2.84

2.64

2.5

10.2

Market Capitalization (8)

237,219

200,521

178,208

18.3

33.1

Interest on Shareholders' Equity - Net

1,519

2,216

1,568

(31.5)

(3.1)

Delinquency Ratio (> 90 days (9) / Loan Portfolio) - %

4.4

4.7

5.6

 (0.3) p.p.

 (1.2) p.p.

Tier I Capital - % (10)

12.4

13.1

12.0

 (0.7) p.p.

0.4 p.p.

(1) According to the non-recurring events described on page 5 of this Economic and Financial Analysis Report;
(2) Includes provision for sureties, guarantees, income from credit recoveries, discounts granted, result with BNDU (assets not for own use) and impairment of financial assets;
(3) For more information, please see note 4 – Balance Sheet and Managerial Statement of Income, in chapter "Complete Financial Statements" of this report;
(4) Besides the Loan portfolio – Brazilian Central Bank (Bacen) concept, includes sureties, guarantees, credit letters, advances on credit card receivables, debentures, promissory notes, co-obligations in real estate receivable certificates and rural credit;
(5) It excludes mark-to-market effect of Available-for-Sale Securities recorded under the Shareholders' Equity;
(6) In the last 12 months;
(7) For comparison purposes, shares were adjusted in accordance with bonuses and stock splits occurred in the periods;
(8) Number of shares (excluding treasury shares) multiplied by the closing price for common and preferred shares on the period's last trading day;
(9) Overdue loans; and
(10) Reduction related to the change in the timetable for the application of deductions on the prudential adjustments that resulted in 100% in 2018 (80% in 2017).

Recurring Net Income vs. Book Net Income

Below is a comparison between the main non-recurring events that affected the net income in the period:

R$ million

1Q18

4Q17

1Q17

Recurring Net Income

5,102

4,862

4,648

Non-Recurring Events

(635)

(1069)

(577)

- Goodw ill amortization (Gross)

(607)

(600)

(554)

- Other (1)

(28)

(469)

(23)

Book Net Income

4,467

3,793

4,071

(1) Consisting basically of contingent liabilities, and in the 4Q17, includes: (a) impairment of non-financial assets, in the amount of R$278 million; (b) special tax regularization program (PERT), in the amount of R$49 million; and (c) program of incentivized installment (PPI), in the amount of R$62 million. Net of tax effects.

Summarized Analysis of Recurring Income

For more information about the summarized analysis of recurring income presented as follows, see chapter "Economic and Financial Analysis" of this report.

Recurring Income Statement

Variation %


(R$ million)

1Q18

4Q17

1Q17

1Q18 x 4Q17

1Q18 x 1Q17







Net Interest Income

15,686

15,813

16,036

(0.8)

(2.2)

-  NII - Interest Earning Portion

15,493

15,661

15,900

(1.1)

(2.6)

-  NII - Non-Interest Earning Portion (1)

193

152

136

27.0

41.9

Expanded PDD

(3,892)

(5,405)

(5,282)

(28.0)

(26.3)

ALL Expenses

(4,599)

(5,414)

(5,896)

(15.10

(22.0)

Income from Credit Recovery

1,447

1,593

1,541

(9.2)

(6.1)

Granted Discounts / Other (2)

(485)

(801)

(507)

(39.5)

(4.3)

Impairment of Financial Assets

(255)

(7830

(420)

(67.4)

(39.3)

Gross Income from Financial Intermediation

11,794

10,408

10,754

13.3

9.7

Income from Insurance, Pension Plans and Capitalization Bonds (3)

1,515

1,873

1,627

(19.1)

(6.9)

Fee and Commission Income

7,831

8,062

7,430

(2.9)

5.4

Personnel Expenses

(4,829)

(4,878)

(4,822)

(1.0)

0.1

Other Administrative Expenses

(4,810)

(5,340)

(4,854)

(9.90

(0.9)

Tax Expenses

(1,821)

(1,758)

(1,772)

3.6

2.8

Equity in the earnings (losses) of unconsolidated and jointly

controlled subsidiaries

27

30

58

(10.0)

(53.4)

Other Operating Income / (Expenses)

(2,037)

(1,923)

(1,833)

5.9

11.1

Operating Income

7,670

6,474

6,588

18.5

16.4

Non-Operating Income

(9)

(160

(52)

(43.8)

(82.7)

IR/CS

(2,483)

(1,543)

(1,839)

60.9

35.0

Income Tax / Social Contribution

(76)

(53)

(49)

43.4

55.1

Non-controlling interests in subsidiaries

5,102

4,862

4648

4.9

9.8

(1) Includes impairment of financial assets without characteristic of credit;
(2) Includes the result with BNDU and provision to sureties and guarantees; and
(3) Income from Insurance, Pension Plans and Capitalization Bonds = Retained Premiums from Insurance, Pension Plans and Capitalization Bonds - Variation in technical reserves for Insurance, Pension Plans and Capitalization Bonds - Retained Claims - Capitalization Bond Draws and Redemptions - Insurance Plan, Pension Plan and Capitalization Bond Selling Expenses.

The Financial Statements can be found in Bradesco's Investor Relations website at banco.bradesco/ri.

CONTACT
Investor Relations Team
+55-11-2194-0922
investors@bradesco.com.br