Banco Bradesco Announces Q2 and Half Year Highlights

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Banco Bradesco S.A.

Jul 28, 2010, 09:45 ET

SAO PAULO, July 28 /PRNewswire-FirstCall/ --

The main figures obtained by Bradesco in the first half of 2010 are presented below:

  1. Adjusted Net Income(1) in the period of R$4.602 billion (up 16.4% from R$3.952 billion in the first half of 2009), corresponding to R$2.19 per share in the last 12 months and Return on Average Equity(2) of 22.8%.
  2. Adjusted Net Income was composed of R$3.198 billion from financial activities, which represented 69% of the total, and R$1.404 billion from insurance, private pension and savings bond activities, which accounted for 31% of the total.
  3. On June 30, 2010, Bradesco's market capitalization stood at R$87.9 billion(3), while the price of preferred shares rose by 10.3%(4) in the last 12 months.
  4. Total Assets stood at R$558.100 billion in June 2010, an increase of 15.7% from the balance in the same period of 2009, while Return on Average Assets was 1.7%.
  5. The Total Loan Portfolio(5) stood at R$244.788 billion in June 2010, up 15.0% from the same period in 2009. Operations with individuals totaled R$89.648 billion (up 20.7%), while operations with corporate clients totaled R$155.141 billion (up 12.0%).
  6. Total Funding and Assets under Management stood at R$767.962 billion, an increase of 18.6% from June 2009.
  7. Shareholders' Equity was R$44.295 billion in June 2010, up 18.8% from a year earlier.  Meanwhile, the Capital Adequacy Ratio (Basel II) stood at 15.9%, of which 13.9% under Tier I Capital.
  8. In the first half of 2010, R$3.290 billion in Interest on Shareholders' Equity and Dividends was paid to shareholders and provisioned, of which R$1.538 billion was related to the net income in the period (R$792 million as monthly and interim dividends and R$746 million provisioned) and R$1.752 billion was related to fiscal year 2009 (R$43 million paid on January 4, 2010 and an additional payment of R$1.709 billion made on March 9, 2010).
  9. The Efficiency Ratio(6) stood at 42.0% in June 2010 (41.5% in June 2009).
  10. Insurance Premiums Written, Social Security Contributions and Savings Bond Revenue reached a combined total of R$14.359 billion in the first six months of 2010. Technical provisions stood at R$79.308 billion, representing 31.4% of Brazil's insurance industry (period: May 2010). Bradesco's Insurance Group serves nearly 34 million clients, participants and insured individuals.
  11. Investments in infrastructure, information technology and telecommunications amounted to R$1.707 billion in the first half of 2010, up 5.6% from the same period of 2009.
  12. In the first six months of 2010, taxes and contributions, including social security, paid or provisioned, amounted to R$7.087 billion, of which R$3.203 billion corresponded to taxes withheld and collected from third parties, and R$3.884 billion to taxes levied on the activities of Bradesco Organization in the first half of 2010, equivalent to 84.4% of Adjusted Net Income.
  13. Banco Bradesco has an extensive customer service network throughout Brazil, with 6,283 Branches, PAB mini-branches and PAAs (3,476 Branches, 1,215 PABs and 1,592 PAAs). Customers can also use 1,565 PAEs, 31,387 ATMs in the Bradesco Dia&Noite (Day&Night) network, 23,190 Bradesco Expresso service points, 6,177 Banco Postal branches and 8,379 ATMs in the Banco24Horas network.
  14. In the first half of 2010, salaries plus payroll charges and benefits totaled R$3.682 billion. Benefits provided to the 89,204 employees of Bradesco Organization and their dependents amounted to R$841.433 million, while investments in training and development programs totaled R$37.825 million.
  15. 15. In April 2010, Bradesco and Banco do Brasil signed a Memorandum of Understanding to enter into a partnership to manage a Brazilian brand of credit, debt and prepaid cards for both account holders and customers without accounts at the Bank, called "Elo," which will, among other activities, also create new business opportunities for private-label cards.
  16. In June 2010, Bradesco completed the acquisition of controlling interest in Ibi Services S. de R.L. Mexico (Ibi Mexico) and RFS Human Management S. de R.L., Ibi Mexico's subsidiary, for approximately R$297 million. The transaction comprises a 20-year partnership with C&A Mexico S. de R.L. (C&A Mexico).
  17. In July 2010, Bradesco concluded the acquisition of 2.09% of capital in Cielo S.A. for R$431.7 million, and 10.67% of the capital in Companhia Brasileira de Solucoes e Servicos – CBSS for R$141.4 million.
  18. Main Awards and Recognitions in the second quarter of 2010:
    • Bradesco was the first financial institution to win the "Modern Consumer Award of Excellence in Customer Service", in three categories: Retail Bank, Premium Bank and Credit Cards (Consumidor Moderno magazine / GKF);
    • Grupo Bradesco de Seguros e Previdencia was the highlight in the 7th edition of the "Premio Segurador Brasil" (Brazilian Insurer Award), receiving recognition in seven categories (Editora Brasil Noticias);
    • Bradesco is the largest private Brazilian group among the 100 largest companies on the planet (Ranking – Forbes 2000);
    • Bradesco is the private company and financial institution with the most valuable brand in Brazil, which was appraised at R$14.9 billion, based on a study conducted by the specialized consulting firm BrandAnalytics/Millward Brown (IstoE Dinheiro magazine).
    • Bradesco is the best stock fund manager according to a survey conducted by Standard & Poor's (ValorInveste magazine); and
    • The 2008 Bradesco Sustainability Report was the winner of the GRI Reader's Choice Awards 2010 in the Most Effective Report Category (Global Reporting Initiative).
  19. On the sustainability front, Bradesco divides its actions 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, focusing 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 more than 50 thousand basic education students also receive, at no charge, uniforms, school supplies, meals and health and dental assistance. Over 550 thousand students will be served through the Virtual School, its elearning 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 effects from asset valuation adjustments registered under Shareholders' Equity; (3) R$96.1 billion based on the total number of shares (less treasury shares) x closing quote for the preferred shares on last day in the period (most liquid share); (4) Considering the reinvestment of dividends/interest on equity; and (5) Includes Sureties and Guarantees, prepayment of credit card receivables and loan assignment (FIDC and CRI); and (6) Last 12 months.

The complete Financial Statements are available at www.bradesco.com.br/ir

Bloomberg: BBDE < GO >

Contact: Mrs. Ivani Benazzi de Andrade, phone: (55 11) 2178-6218 or Mr. Carlos Tsuyoshi Yamashita, phone: (55 11) 2178-6204.

SOURCE Banco Bradesco S.A.

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