Banco Bradesco 3Q15 Results

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SAO PAULO, Oct. 29, 2015 /PRNewswire/ -- The main figures obtained by Bradesco (BM&FBovespa: BBDC3; BBDC4, NYSE: BBD) in the first nine months of 2015 are presented below:

1. Adjusted Net Income ⁽¹⁾ for the first nine months of 2015 stood at R$13.311 billion (an 18.6% increase compared to the R$11.227 billion recorded in the same period of 2014), corresponding to earnings per share of R$3.47, in the last 12 months, and Return on Average Adjusted Equity ⁽²⁾ of 21.2%.

2. As for the source, the Adjusted Net Income is composed of R$9.428 billion from financial activities, representing 70.8% of the total, and of R$3.883 billion from insurance, pension plans and capitalization bonds operations, which together account for 29.2%.

3. In September 2015, Bradesco's market value stood at R$113.288 billion ⁽³⁾.

4. Total Assets, in September 2015, stood at R$1.051 trillion, an increase of 6.4% over the September 2014 balance. The return on Average Total Assets was 1.7%, an increase of p.p. over September 2014 (1.6%).

5. In September 2015, the Expanded Loan Portfolio ⁽⁴⁾ reached R$474.488 billion, up 6.8% over September 2014. Operations with individuals totaled R$145.234 billion (an increase of 5.2% over September 2014), while corporate segment operations totaled R$329.253 billion (up 7.5% over September 2014).

6. Assets under Management stood at R$1.453 trillion, a 4.9% increase over September 2014.

7. Shareholders' Equity totaled R$86.233 billion in September 2015, 8.8% higher than in September 2014. Basel III Ratio, calculated based on the Prudential Consolidated stood at 14.5% in September 2015, 11.4% of which was classified as Common Equity / Tier I.

8. A total of R$4.358 billion was paid to shareholders as Interest on Shareholders' Equity and Dividends for the first nine months of 2015, of which R$1.707 billion were paid in monthly and interim installments and R$2.651 billion were provisioned.

9. The Interest Earning Portion of the Net Interest Income stood at R$40.397 billion, an increase of 16.0% compared to the first nine months of 2014.

10. The Delinquency Ratio over 90 days stood at 3.8% in September 2015 (3.6% in September 2014).

11. The Operating Efficiency Ratio (ER) ⁽⁵⁾ in September 2015 was 37.9% (39.9% in September 2014), while in the "risk-adjusted" concept, it stood at 46.6% (48.7% in September 2014).

12. Insurance Written Premiums, Pension Plan Contributions and Capitalization Bond Income totaled R$45.482 billion in the period of nine months of 2015, up 18.6% when compared to the same period in 2014. Technical Reserves stood at R$168.629 billion, an increase of 15.5% compared to the balance in September 2014.

13. Investments in infrastructure, information technology and telecommunications amounted to R$4.044 billion in the period of nine months of 2015, up 16.5% over the same period in the previous year.

14. Taxes and contributions paid or recorded in provision, including social security, totaled R$19.225 billion, of which R$8.690 billion were related to taxes withheld and collected from third parties, and R$10.535 billion were calculated based on activities developed by Organizacao Bradesco, equivalent to 79.1% of the Adjusted Net Income⁽¹⁾.

15. Bradesco has an extensive Customer Service Network in Brazil, with 4,593 Branches and 3,496 Service Points (PAs). Customers of Bradesco can also count on 845 ATMs, 48,175 Bradesco Expresso service points, 31,495 Bradesco ATMs, and 18,618 Banco24Horas Network ATMs.

16. Payroll, plus charges and benefits, totaled R$9.237 billion. Social benefits provided to all 93,696 employees of Organizacao Bradesco and their dependents amounted to R$2.304 billion, while investments in education, training and development programs totaled R$100.913 million.

17. In August 2015, Bradesco informed the market that it had signed a Purchase Contract of Shares with HSBC Latin America Holdings Limited for the acquisition of 100% of the share capital of HSBC Bank Brasil S.A. – Banco Multiplo and HSBC Serviços e Participacoes Ltda. ("HSBC"), for the value of US$5.2 billion. The price will be adjusted by the equity variation of HSBC as per December, 2014 and will be paid on the date of completion of the operation, which is subject to the approval of the competent regulatory authorities and in compliance with the legal formalities. With the acquisition, Bradesco will assume all operations of HSBC in Brazil, including retail, insurance and asset management, as well as all the branches and clients.

18. In September 2015, Bradesco was selected for the 10th consecutive year, to integrate the Dow Jones Sustainability Index (DJSI), in the portfolios "Dow Jones Sustainability World Index" and "Dow Jones Sustainability Emerging Markets".

19. Major Awards and Acknowledgments in the period:

• Bradesco was considered the most valuable Bank brand in Latin America and obtained 4th place in the general ranking amongst all sectors with a value of US$5.2 billion (BrandAnalytics / Millward Brown);
• It was a highlight in the 2015 edition of the "Anuario Valor 1000" (Yearbook) integrating the ranking of the largest banks and occupying the 1st place among insurers, with Bradesco Seguros, Bradesco Vida e Previdencia and Bradesco Saude (Valor Economico newspaper); and
• For the 16th time, it was part of the list of"135 Melhores Empresas para Trabalhar no Brasil" ("135 Best Companies to Work For in Brazil"), (Epoca magazine, assessed as Great Place to Work).

Organizacao Bradesco is fully committed to internationally recognized sustainability and corporate governance initiatives, particularly: Global Compact, PRI (Principles for Responsible Investment), and Equator Principles. We set our guidelines and strategies with a view to incorporating the best sustainability practices into our businesses, considering the context and the potential of each region, thus contributing to the generation of value in the Organization. The driving force behind our engagement is inclusion via education, democratization and presence, innovation, sustainability and continuity of our businesses. Our management process adopts economic and socio-environmental indexes developed in Brazil and abroad, such as the Dow Jones Sustainability Index (DJSI), the Corporate Sustainability Index (ISE, of BM&FBovespa), and the Carbon Efficient Index (ICO2, also of BM&FBovespa), as well as the guidelines and indexes of the Global Reporting Initiative (GRI) and the CDP.

With a broad social and educational program in place for 58 years, Fundacao Bradesco operates 40 schools across Brazil. In 2015, an estimated R$537.311 million budget will benefit approximately 101,609 students enrolled in its schools at the following levels: basic education (from kindergarten to high school and higher secondary technical-professional education), youth and adult education; and preliminary and continuing vocational training, which focuses on creating jobs and income. In addition to being guaranteed free quality education, the approximately 44 thousand students enrolled in the Basic Education system also receive uniforms, school supplies, meals, and medical and dental assistance. With regard to the distance learning system (EaD), it is estimated that 380 thousand students will benefit from it, through its e-learning portal Escola Virtual (Virtual School). These students will conclude, at least, one of the various courses offered in its schedule, and another 17 thousand students will benefit from projects and initiatives carried out in partnership with Centers for Digital Inclusion (CDIs), the Educa+Acao Program, and from Technology courses (Educar e Aprender - Educating and Learning).

(1) According to the non-recurring events described on page 8 of this Economic and Financial Analysis Report; (2) Excludes mark-to-market effect of Available-for-Sale Securities recorded under Shareholders' Equity; (3) Number of shares (excluding treasury shares) multiplied by the 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 +011-55-11-2194-0924, [email protected]  or Carlos Tsuyoshi Yamashita, +011-55-11-2194-0920, [email protected]   both of Banco Bradesco.

SOURCE Banco Bradesco S.A.