Banco Bradesco 9M2013 Results

SAO PAULO, Oct. 21, 2013 /PRNewswire/ -- The main figures obtained by Banco Bradesco (BM&FBOVESPA: BBDC3, BBDC4; NYSE: BBD, BBDO and Latibex: XBBDC) in the first nine months of 2013 are presented below:

1. Adjusted Net Income(1) for the first nine months of 2013 stood at R$9.003 billion (a 4.6% increase compared to the R$8.605 billion recorded in the same period last year), corresponding to earnings per share of R$2.84 in the last 12 months, and Return on Average Adjusted Shareholders' Equity(2) of 18.4%.
2. Adjusted Net Income is composed of R$6.264 billion from financial activities, representing 69.6% of the total, and R$2.739 billion from insurance, pension plan and capitalization bond operations, which accounted for 30.4%.
3. On September 30, 2013, Bradesco's market capitalization stood at R$136.131 billion(3), up 20.4% over the same period in 2012. As of May 2013, Bradesco common shares compose the Ibovespa index.
4. Total Assets stood at R$907.694 billion in September 2013, a 6.0% increase over the same period in 2012. Return on Total Average Assets was 1.3%.
5. The Expanded Loan Portfolio(4) stood at R$412.559 billion in September 2013, up 11.0% during the same period in 2012. Operations with individuals totaled R$127.068 billion (up 10.9% on September 2012), while operations with companies totaled R$285.491 billion (up 11.0% on September 2012).
6. Assets under Management stood at R$1.256 trillion, a 7.2% increase from September 2012.
7. Shareholders' Equity stood at R$67.033 billion in September 2013, up 1.5% on September 2012. Capital Adequacy Ratio stood at 16.4% in September 2013, 12.7% of which fell under Tier I Capital.
8. Interest on Shareholders' Equity were paid and recorded in provision to shareholders in the amount of R$3.145 billion for the first nine months of 2013, R$1.554 billion of which was paid as monthly and interim interest and R$1.591 billion was recorded in provision.
9. Interest Financial Margin stood at R$31.700 billion, up 1.1% in comparison with the first nine months of 2012.
10. 10. The Delinquency Ratio over 90 days dropped 0.5 p.p. in the last 12 months and stood at 3.6% on September 30, 2013 (4.1% on September 30, 2012).
11. The Efficiency Ratio(5) in September 2013 remained stable (42.1%) when compared to September 2012, whereas the "adjusted to risk" ratio stood at 52.5%, for a 0.6 p.p. improvement (53.1% in September 2012).
12. Insurance Written Premiums, Pension Plan Contributions and Capitalization Bond Income totaled R$35.260 billion in the first nine months of 2013, up 13.4% over the same period in 2012. Technical Reserves stood at R$133.554 billion, up 13.4% on September 2012.
13. Investments in infrastructure, information technology and telecommunications amounted to R$3.498 billion in the first nine months of 2013, up 17.9% over the same period last year.
14. Taxes and contributions, including social security, paid or recorded in provision, amounted to R$18.096 billion in the first nine months of 2013, of which R$7.039 billion referred to taxes withheld and collected from third parties and R$11.057 billion from Bradesco Organization activities, equivalent to 122.8% of Adjusted Net Income(1).
15. Bradesco has an extensive customer service network in Brazil, with 4,697 Branches and 3,760 Service Branches - PAs. Customers can also use 1,421 PAEs – ATMs (Automatic Teller Machines) in companies, 45,614 Bradesco Expresso service points, 33,933 Bradesco Dia & Noite ATMs and 14,036 Banco24Horas ATMs.
16. Payroll, plus charges and benefits, totaled R$8.143 billion. Social benefits provided to the 101,410 employees of the Bradesco Organization and their dependents amounted to R$1.991 billion, while investments in training and development programs totaled R$72.259 million.
17. Bradesco was once again included in the Dow Jones Sustainability Index, a select NYSE trading list that includes only those companies with the best sustainable development practices.
18. Bradesco BBI was among the lead managers in the raising of capital to the North-American automaker Ford, in a transaction which amounted to US$1 billion. For the first time a Brazilian bank participated as lead manager of such operation for a North-American company in the United States. BBI was also authorized by Tokyo Stock Exchange to operate in the Japanese market as manager of a yen bond offering, which makes Bradesco the first Latin-American bank to operate in the Japanese debt market.
19. Bradesco, through its subsidiary Bradesco Saude S.A., entered into an agreement that establishes the terms and conditions for a reorganization of its ownership interest held in Odontoprev, through which Bradesco Saude will acquire 6.5% of the voting capital of Odontoprev. The operation is subject to approval from the Brazilian Central Bank. After the acquisition, Bradesco Saude will hold approximately 50.01% of Odontoprev.
20. Major Awards and Acknowledgments in the period:
    • Bradesco was considered the most profitable private bank in Latin America and the United States (Economatica);
    • Bradesco was considered Brazil's most valuable brand, according to 2013 ranking (Brand Finance);
    • Bradesco is the most valuable brand in Latin America (BrandAnalytics/ Millward Brown consulting firm, published in Financial Times newspaper);
    • Bradesco received the 2012 Publicly-held Company Award, promoted by Apimec. It acknowledges companies that have invested in long-term relationship and open dialogue with their investors;
    • Bradesco was granted the 2013 Highlight of the Sector Award, in the Banks and Credits category, with the best case in value creation in 2012 (Abrasca);
    • Bradesco stood out as the best Bank to Work for in Brazil (Guia 2013 Voce S/A – As Melhores Empresas para Voce Trabalhar);
    • For the seventh consecutive time, Grupo Bradesco Seguros ranked first in the Brazilian insurance company category (2012 Valor 1000 list of Valor Economico newspaper); and
    • BRAM – Bradesco Asset Management was considered the best fund manager ("Guia Exame de Investimentos Pessoais 2013" – Exame magazine).
21. With regards to sustainability, Bradesco divides its actions into three pillars: (i) Sustainable Finances, focused on banking inclusion, social and environmental variables for loan approvals and product offerings; (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. In this area, we point out Fundacao Bradesco, which has a 56-year history of extensive social and educational work, with 40 schools in Brazil. In 2013, an estimated budget of R$460.961 million will benefit 106,843 students in its schools, in Basic Education (from Kindergarten to High School and Vocational Training - High School Level), Education for Youth and Adults; and Preliminary and Continuing Qualification focused on the creation of jobs and generation of income.

(1) According to non-recurring events described on page 8 of this Report on Economic and Financial Analysis; (2) Excludes mark-to-market effect of available-for-sale securities recorded under Shareholders' Equity; (3) Number of shares (excluding treasury shares) x 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.