Banco Bradesco 1S16 Results

Banco Bradesco S.A.
2016-07-28 22:28 1698

SAO PAULO, July 28, 2016  /PRNewswire/ -- The main figures obtained by Bradesco (BM&FBovespa: BBDC3; BBDC4, NYSE: BBD) in the first semester of 2016 are presented below:

1. Adjusted Net Income(1) for the first semester of 2016 stood at R$8.274 billion (a 5.7% decrease compared to the R$8.778 billion recorded in the same period of 2015), corresponding to earnings per share of R$3.14 and Return on Average Adjusted Shareholders' Equity(2) of 17.4%(2).

2. As for the source, the Adjusted Net Income is composed of R$5.730 billion from financial activities, representing 69.3% of the total, and of R$2.544 billion from insurance, pension plans and capitalization bonds operations, which together account for 30.7%.

3. In June 2016, Bradesco's market capitalization stood at R$144.366 billion(3).

4. Total Assets, in June 2016, stood at R$1.105 trillion, an increase of 7.3% over the June 2015 balance. The return on Average Total Assets was 1.5%.

5. In June 2016, the Expanded Loan Portfolio(4) reached R$447.492 billion, a decrease of 3.4% over June 2015. Operations with individuals totaled R$148.919 billion (an increase of 3.8% over June 2015), while corporate section operations totaled R$298.573 billion (a 6.7% decrease over June 2015).

6. Assets under Management stood at R$1.589 trillion, an 10.1% increase over June 2015.

7. Shareholders' Equity totaled R$96.358 billion in June 2016, 10.8% higher than in June 2015. The calculated Basel III Ratio, based on the Prudential Conglomerate stood at 17.7% in June 2016, 13.7% of which was classified as Common Equity/Tier I.

8. A total of R$2.906 billion was paid to shareholders as Interest on Shareholders' Equity for the profit generated in the first semester of 2016, of which R$1.567 billion was paid in the form of monthly and intermediaries and R$1.339 billion provisioned.

9. The Interest Earning Portion of the Net Interest Income stood at R$29.517 billion, an increase of 10.6% compared with the first semester of 2015.

10. The Delinquency Ratio over 90 days stood at 4.6% in June 2016 (3.7% in June 2015).

11. The Operating Efficiency Ratio (ER)(5) in June 2016 was 37.4% (37.9% in June 2015), while in the "risk-adjusted" concept, it stood at 48.1% (46.5% in June 2015).

12. Written Insurance Premiums, Pension Plan Contributions and Capitalization Bond Income totaled R$32.439 billion in the first semester of 2016, up 6.9% when compared with the same period of 2015. Technical Reserves stood at R$190.649 billion, an increase of 15.8% compared with the balance in June 2015.

13. Investments in infrastructure, information technology and telecommunications amounted to R$2.993 billion in the first semester of 2016, up 10.6% over the same period of the previous year.

14. Taxes and contributions paid or recorded in provision, including social security, totaled R$20.155 billion in the first semester of 2016, of which R$6.527 billion was related to taxes withheld and collected from third parties, and R$13.628 billion was calculated based on activities developed by the Bradesco Organization, equivalent to 164.7% of the Adjusted Net Income(1).

15. Bradesco has an extensive Customer Service Network in Brazil, with 4,483 Branches and 3,485 Service Points (PAs). Customers of Bradesco can also count on 726 ATMs located on company premises (PAEs), 40,452 Bradesco Expresso service points, 31,761 Bradesco ATMs, and 19,075 Banco24Horas Network ATMs.

16. Payroll, plus charges and benefits totaled R$6.497 billion in the first semester of 2016. Social benefits provided to all 89,424 employees of the Bradesco Organization and their dependents amounted to R$1.634 billion, while investments in education, training and development programs totaled R$51.124 million.

17. In July 2016, Bradesco informed the market that the acquisition of 100% of the share capital of HSBC Bank Brasil S.A. -- Banco Multiplo and HSBC Serviços e Participacoes Ltda. (together, known as "HSBC Brasil") had been completed and the amount paid to HSBC Latin America Holdings Limited was R$16.0 billion. This value is subject to adjustment post-closing based on the balance sheet of HSBC Brasil (IFRS based).

18. Major Awards and Acknowledgments in the period:

- Voted, for the fifth consecutive time, as the "Best Bank in the country," and Bradesco BBI was recognized for the second time as the "Best Investment Bank in Brazil" in the edition of "Awards for Excellence 2016" (Euromoney magazine);

- Bradesco was awarded "Best Bank of the Year" in efinance 2016, by Executivos Financeiros (Financial Executives magazine), with 14 awards;

- Bradesco Asset Management (Bram) received from Standard & Poor's, the level AMP-1 (very strong), which is the highest in the scale of quality management of S&P Global Ratings; and

- Featured in the "Global Finance 2016" awards, receiving two awards: Receba Facil, in the Trade Finance category and "Novo Net Empresa" for cell phones, in the Transaction Services (Global Finance magazine) category.

Bradesco Organization is fully committed to the socio-economic development of the country. We set our business guidelines and strategies with a view to incorporating the best corporate sustainability practices, considering the context and the potential of each region, thus contributing to the generation of shared value in the long-term. To reinforce this positioning, we highlight the adherence to corporate initiatives recognized worldwide, such as the Global Compact, the Equator Principles, CDP, Principles for Responsible Investment (PRI), GHG Protocol Program and Empresas pelo Clima (EPC - Business for the Climate Platform). Our governance structure includes the Sustainability Committee, responsible for advising the Board of Directors on establishing guidelines and corporate actions for this area, and with the multi-departmental Committee responsible for coordinating the strategy´s implementation. Excellence in business management is recognized by the main indexes of Sustainability, such as the Dow Jones Sustainability Index (DJSI), of the New York Stock Exchange, the Corporate Sustainability Index (ISE), and the Carbon Efficient Index (ICO2), both of BM&FBOVESPA.

With a broad social and educational program in place for 59 years, Fundacao Bradesco operates 40 schools across Brazil. In 2016, an estimated budget of R$593.360 million will benefit approximately 101,566 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 to be free, quality education, the students enrolled in the Basic Education system, numbering over 43 thousand, also receive uniforms, school supplies, meals, medical and dental assistance. With regard to the distance learning system (EaD), it is estimated that more than 550 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 21,490 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).

The Financial Statements can be found on Bradesco's Investor Relations website at

(1) According to the non-recurring events described on page 8 of this Economic and Financial Analysis Report; (2) As of the first quarter of 2016, the annualized profitability has been calculated on a linear basis, (ROAE of 18.1% in the previous criterion, in the first semester of 2016), and also, it 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, or Carlos Tsuyoshi Yamashita, +011-55-11-2194-0920,, both of Banco Bradesco

Source: Banco Bradesco S.A.