Banco Bradesco - First Quarter 2010 Results

Apr 28, 2010, 09:55 ET from Banco Bradesco S.A.

SAO PAULO, April 28 /PRNewswire-FirstCall/ -- The main figures obtained by Bradesco (NYSE: BBD; Bovespa: BBDC4; Latibex: XBBDC) in the first quarter of 2010 are presented below:


1.  Adjusted Net Income(1) in the first quarter of 2010 was R$2.147 billion (an increase of 9.8% from R$1.956 billion in the first quarter of 2009), corresponding to earnings per share of R$2.27 accrued over twelve months and Return on Average Shareholders' Equity(2) of 22.2%.

2.  Adjusted Net Income was composed of R$1.444 billion from financial activities, which represented 67% of the total, and R$703 million from insurance, private pension and savings bond operations, which accounted for 33% of the total.

3.  Bradesco's market capitalization stood at R$100.885 billion(3) on March 31, 2010, with the preferred shares gaining 60.5%(4) in the last twelve months.

4.  Total Assets stood at R$532.626 billion in March 2010, an increase of 10.5% from the balance in the first quarter of 2009. Return on average assets was 1.7% in the quarter.

5.  The Total Loan Portfolio(5) stood at R$235.238 billion in March 2010, up 10.4% from the first quarter of 2009. Operations with individuals totaled R$86.012 billion (up 16.7%), while operations with companies totaled R$149.226 billion (up 7.1%).

6.  Total Assets under Management stood at R$739.894 billion, an increase of 15.5% from March 2009.

7.  Shareholders' Equity was R$43.087 billion in March 2010, increasing by 22.0% from the ending balance in the same period a year earlier. The Capital Adequacy Ratio (Basel II) stood at 16.8% in March 2010, 14.3% of which under Tier I Capital.

8.  In the first quarter of 2010, Interest on Shareholders' Equity and Dividends in the amount of R$2.498 billion were paid and provisioned, of which R$746 million was related to income generated in the period and R$1.752 billion to income from fiscal year 2009.

9.  The Efficiency Ratio(6) stood at 41.2% in March 2010 (42.5% in March 2009), increasing by 1.3 p.p. in the period.

10.  Insurance Premiums written, Social Security Contributions and Savings Bonds Revenue reached a total of R$7.196 billion in the first quarter of 2010. Technical provisions reached the high level of R$77.685 billion, representing 31.8% of Brazil's insurance industry (period: January 2010). Bradesco's Insurance Group serves nearly 34 million clients, participants and insured individuals.

11.  Investments in infrastructure, technology and telecommunications amounted to R$765 million in the first quarter of 2010.

12.  Taxes and contributions, including social security, paid or provisioned, amounted to R$3.197 billion, of which R$1.360 billion corresponding to taxes withheld and collected from third-parties and R$1.837 billion calculated based on the activities of Bradesco Organization in the first quarter of 2010, equivalent to 85.6% of Adjusted Net Income.

13.  Banco Bradesco has an extensive distribution network in Brazil, with 6,106 Branches, PABs, mini-branches and PAAs (3,455 Branches, 1,200 PABs and 1,451 PAAs). Customers can also make use of the 1,564 PAEs, 30,909 ATMs in the Bradesco Dia&Noite (Day&Night) network, 21,501 Bradesco Expresso service points, 6,110 Banco Postal (Postal Bank) branches and 7,863 ATMs in the Banco24Horas (24HourBank) network.

14.  In the first quarter of 2010, employee payroll plus charges and benefits totaled R$1.795 billion. Social benefits provided to the 85,893 employees of the Bradesco Organization and their dependents amounted to R$417.442 million, while investments in training and development programs totaled R$11.469 million.

15.  Bradesco, helping to capitalize companies, intermediated through Banco Bradesco BBI S.A. issuances of primary and secondary shares, debentures, promissory notes, mortgage-backed securities and receivables-backed investment funds, which amounted to R$6.980 billion in the period, representing 45.1% of the total volume of these issuances registered at the Securities and Exchange Commission of Brazil (CVM). Bradesco also registered strong volumes of Project finance and structured operations, and was responsible for the origination, distribution and management of clients' assets, cash flows and financial inventories.

16.  Main Awards and Recognitions in the period:

  • Bradesco was the leading bank in the 7th edition of the survey Companies that Most Respect the Consumer (Consumidor Moderno magazine and Shopper Experience);
  • Bradesco ranked 1st in the new quality ranking of companies with the Best customer service in 2009 (Exame magazine, in partnership with the Brazilian Customer Relations Institute);
  • Bradesco won, for the second consecutive year, the International Golden Peacock Global Award for Corporate Social Responsibility 2010, which is only awarded to companies that adopt the best corporate social responsibility practices;
  • Bradesco was the only Brazilian bank included in the ten most valuable brands in the world among financial institutions, with the brand worth US$13.3 billion (Global Banking 500 - Brand Finance/The Banker magazine);
  • Bradesco won the International Technology Application of the Year - Transpromo award for the study case Application to Checking Account Statements (Xplor International);
  • The Bradesco Brazil Bond Fund – Dividend Focus Fund was selected the Best investment fund of the year in the category Brazilian fixed-income securities (MorningStar);
  • Bradesco Corretora ranked first in an annual survey of institutions with the Best stock recommendations for components of the Morgan Stanley Capital International index (MSCI) - Emerging Markets Free Latin America stock; and
  • Bradesco was the best Brazilian company in the Canadian Corporate Knight ranking of the 100 most sustainable companies in the world;

17.  Bradesco's sustainability actions are divided into three pillars: (i) Sustainable Finances, with a focus on banking inclusion, social and environmental variables for loan approvals and offering social and environmental products; (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. The highlight in this area is Fundacao Bradesco, which for 53 years has been developing a broad social and educational program that operates 40 schools across Brazil. In 2010, a R$268.010 million budget will provide over 662 thousand services, of which 112 thousand were provided to students in its own schools. In addition, the over 50 thousand students enrolled in basic education also receive, at no charge, uniforms, school materials, food and medical and dental care.

Over 550 thousand students will be served through the Virtual School, its e-learning portal, through the Digital Inclusion Centers (CIDs) and through programs conducted under strategic partnerships, like Educa+Acao.

(1) According to the non-recurring events described on page 8 of the Report on Economic and Financial Analysis; (2) Excludes the asset valuation adjustments recorded under Shareholders' Equity; (3) or R$112.189 billion, considering the total number of shares (less treasury shares) x closing quote of preferred shares on the last day of the period (most liquid share); (4) Considers reinvestment of dividends/interest on shareholders' equity; (5) Includes Sureties and Guarantees, advances of credit cards receivables and loan assignments (receivables-backed investment funds and mortgage-backed receivables); (6) In last twelve months.

CONTACT: Paulo Faustino da Costa, +011-55-11-2178-6201,, or Ivani Benazzi de Andrade, +011-55-11-2178-6218,

SOURCE Banco Bradesco S.A.