Banco Bradesco Announces 9M10 Earnings Results

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Oct 27, 2010, 09:01 ET

SAO PAULO, Oct. 27 /PRNewswire-FirstCall/ -- The main figures obtained by Bradesco . (NYSE: BBD; BOVESPA: BBDC4; Latibex: XBBDC) in the first nine months of 2010 are presented below:

Adjusted Net Income(1) in the period was R$7.120 billion (an increase of 23.9% from R$5.747 billion in the same period of 2009), corresponding to earnings per share of R$2.38 accrued over twelve months and Return on Average Shareholders' Equity(2) of 22.5%.
Adjusted Net Income was composed of R$4.995 billion from financial activities, which represented 70% of the total, and R$2.125 billion from insurance, private pension and savings bond operations, which accounted for 30% of the total.
On September 30, 2010, Bradesco's market capitalization stood at R$114.510 billion(3), while the value of preferred shares rose by 19.6%(4) in the last twelve months.
Total Assets stood at R$611.903 billion in September 2010, an increase of 26.0% from the balance in the same period in 2009. Return on average assets was 1.7%.
The Total Loan Portfolio(5) stood at R$255.618 billion in September 2010, up 18.6% from the same period in 2009. Operations with individuals totaled R$92.905 billion (up 23.0%), while operations with companies totaled R$162.713 billion (up 16.2%).
Total Assets under Management stood at R$838.455 billion, an increase of 24.3% from September 2009.
Shareholders' Equity was R$46.114 billion in September 2010, increasing by 18.6% from the balance in the same period a year earlier. The Capital Adequacy Ratio (Basel II) stood at 15.7% in September 2010, 13.5% of which under Tier I Capital.
In the first nine months of 2010, Interest on Shareholders' Equity and Dividends in the amount of R$4.160 billion were paid and provisioned, of which R$2.408 billion were related to income generated in the period (R$938 million in interim and monthly dividends paid and R$1.470 billion provisioned) and R$1.752 billion to income from fiscal year 2009 (R$43 million monthly paid on January 4, 2009 and additional payments of R$1.709 billion paid on March 9, 2010).
The Efficiency Ratio(6) stood at 42.5% in September 2010 (40.9% in September 2009) and the "adjusted-to-risk" ratio stood at 53.3% in September 2010 (55.8% in September 2009).
Insurance Written Premium, Pension Plan Contributions and Savings Bonds Income totaled R$22.056 billion in the first nine months of 2010. Technical provisions stood at R$82.363 billion, equal to 31.1% of the Brazilian insurance market (period: August/10).
Investments in infrastructure, information technology and telecommunication amounted to R$2.694 billion in the first nine months of 2010, growth of 8.1% compared to the same period in 2009.
In the nine month period of 2010, taxes and contributions, including social security, paid or provisioned, amounted to R$10.766 billion, of which R$4.398 billion corresponded to taxes withheld and collected from third parties, and R$6.368 billion corresponded to taxes levied on the activities of Bradesco Organization is active in the first nine months of 2010, equal to 89.4% of Adjusted Net Income.
Banco Bradesco has an extensive distribution network in Brazil, with 6,374 Branches, PAB mini-branches and PAAs (3,498 Branches, 1,233 PABs and 1,643 PAAs). Customers can also use 1,559 PAEs, 31,759 ATMs in the Bradesco Dia&Noite network, 24,887 Bradesco Expresso service points, 6,194 Banco Postal (Postal Bank) branches and 9,248 ATMs in the Banco24Horas (24HourBank) network.
In the first nine months of 2010, employee payroll plus charges and benefits totaled R$5.717 billion. Social benefits provided to the 92,003 employees of the Bradesco Organization and their dependents amounted to R$1.332 billion, while investments in training and development programs totaled R$68.286 million.
In August 2010, Odontoprev S.A. and its parent companies Bradesco Seguros S.A. and ZNT Empreendimentos, Comercio e Participacoes Ltda. entered into a Memorandum of Understanding with BB Seguros Participacoes S.A. to start a strategic alliance for the development and sale of dental insurance.
In August 2010, Bradesco and Banco do Brasil entered into a Memorandum of Understanding with Caixa Economica Federal seeking the participation of the latter in a company to be formed in order to manage "Elo," the new Brazilian brand of credit, debit and prepaid cards to be offered to account holders and non-account holders of the respective banks.
In September 2010, Bradesco entered into an agreement with CPM Braxis and its shareholders to transfer the controlling interest in CPM Braxis to Capgemini S.A., through which it acquired 55% of shares issued by CPM Braxis.
Main Awards and Recognitions in the third quarter of 2010:
- Bradesco received the Escore GAMMA 7 awarded by Standard & Poor's Governance Services for its strong corporate governance standards. The highest Escore GAMMA Governance rating ever awarded worldwide was a 7+.
- Bradesco continued as a component of the Dow Jones Sustainability Index (DJSI) of the New York Stock Exchange in 2010, an indicator that lists the best companies worldwide in terms of Corporate Governance and social and environmental responsibility practices;
- Bradesco was chosen one of the 100 Best Companies of the Year in the "2010 Organizational Human Development Indicator Award";
- Grupo Bradesco de Seguros e Previdencia was a general leader in the annual Valor 1000 in the following rankings: Insurance, Life and Pension Plan and Health (Valor 1000 magazine);
- For the 6th time, Bradesco Saude received the Estadao RH Top of Mind award in the "health insurance" category (Estado de Sao Paulo newspaper / Felix Editora);
- Organizacao Bradesco was chosen as the Best Bank in HR and Social Responsibility, Best Insurance Company and Best Health Company in the annual publication As Melhores da Dinheiro (IstoE Dinheiro magazine); and
- For 11 years, Bradesco has been one of the "100 Best Companies to Work for in Brazil (Epoca magazine)."

19. In relation to sustainability, Bradesco divides its actions into three pillars: (i) Sustainable Finances, with a focus on banking inclusion, social and environmental variables for loan approvals and the offering of 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 660 thousand service events, of which 112 thousand were provided to students in its own schools. In addition, the 50 thousand elementary education students are also provided with uniforms, school supplies, meals and health and dental assistance, all free of charge. 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 08 of the Report on Economic and Financial Analysis; (2) Excludes the effects from asset valuation adjustments registered under shareholders' equity; (3) R$127.6 billion considering the total number of shares (less treasury shares) x closing quote for preferred shares on last day in period (most net share); (4) Considering the reinvestment of dividends/interest on shareholders' equity; (5) Includes sureties and guarantees, advances of credit card receivables and credit assignments (receivables-backed investment funds and mortgage-backed receivables); and (6) Accumulated over 12 months.