Banco Bradesco (BM&FBOVESPA: BBDC3, BBDC4; NYSE: BBD and Latibex: XBBDC) Announces its Results for Nine-Month Period of 2011By Banco Bradesco S.a., PRNE
Tuesday, October 25, 2011
SAO PAULO, October 26, 2011 -
The main figures obtained by Bradesco in the nine-month period of 2011 are presented below:
1. Adjusted Net Income(1) in the period was R$8.427 billion (an 18.4% increase compared to the R$7.120 billion recorded in the same period last year), corresponding to earnings per share of R$2.91 in the last 12 months and Return on Average Shareholders' Equity(2) of 22.4%. 2. Adjusted Net Income was composed of R$6.086 billion from financial activities, representing 72.2% of the total, and R$2.341 billion from insurance, private pension plans and savings bond operations, which accounted for 27.8%. 3. On September 30, 2011, Bradesco's market capitalization stood at R$96.682 billion(3). 4. Total Assets stood at R$722.289 billion in September 2011, an 18.0% increase on the balance in the same period in 2010. Return on Average Assets was 1.7%. 5. The Expanded Loan Portfolio(4) stood at R$332.335 billion in September 2011, up 22.0% from the same period in 2010. Operations with individuals totaled R$105.389 billion (a 13.3% gain), while operations with companies totaled R$226.946 billion (up 26.5%). 6. Total Assets under Management stood at R$973.194 billion, an increase of 16.1% from September 2010. 7. Shareholders' Equity stood at R$53.742 billion in September 2011, up 16.5% on September 2010. The Capital Adequacy Ratio stood at 14.7% in September 2011, 12.2% of which fell under Tier I Capital. 8. Interest on Shareholders' Equity and Dividends were paid and provisioned to shareholders for the first nine months of 2011 in the amount of R$2.838 billion, R$1.104 billion of which was paid as monthly and interim dividends and R$1.734 billion provisioned. 9. Financial Margin reached R$29.063 billion, up 20.9% in comparison with the first nine months of 2010. 10. The Delinquency Ratio over 90 days stood at 3.8%, stable in comparison with September 2010. 11. The Efficiency Ratio(5) stood at 42.7% in September 2011 (42.5% in September 2010) and the "adjusted-to-risk" ratio stood at 52.4% (53.3% in September 2010). 12. Insurance Written Premiums, Pension Plan Contributions and Savings Bond Income totaled R$26.560 billion in the nine-month period of 2011, up by 20.4% over the same period in 2010. Technical provisions stood at R$97.099 billion, equal to 30.1% of the Brazilian insurance market (reference date: July/11). 13. Investments in infrastructure, information technology and telecommunications amounted to R$2.819 billion in the first nine months of 2011, a 4.6% increase on the same period in the previous year. 14. In the first nine months of 2011, taxes and contributions, including social security, paid or provisioned, amounted to R$14,127 billion, R$6,042 billion of which referred to taxes withheld and collected from third parties and R$8.085 billion to activities of Bradesco Organization, equivalent to 95.9% of Adjusted Net Income(1). 15. Continuing its strategy towards organic growth, Bradesco launched, in the past 12 months, 451 branches of which 271 were opened in the last three months and hired over 9 thousand new employees in the period. Bradesco has an extensive customer service network in Brazil, comprising 6,925 service points (3,945 branches, 1,320 PABs - Banking Service Branches and 1,660 PAAs - Advanced Service Branches). Customers can also use 1,589 PAEs - ATMs in companies, 31,372 16. Bradesco Expresso service points, 6,233 Postal Bank branches, 33,217 own ATMs in the Bradesco Dia&Noite network and 12,379 ATMs shared with other banks(6). 17. Employee payroll, plus charges and benefits, totaled R$6.631 billion. Social benefits provided to the 101,334 employees of the Bradesco Organization and their dependents amounted to R$1.585 billion, while investments in training and development programs totaled R$108.268 million. 18. On August 12, 2011, Fitch Rating raised Bradesco's support rating(7) by one notch, from '3' to '2'. 19. On August 22, 2011, Japanese rating agency R&I raised Bradesco's issuer rating from 'BBB-' to 'BBB'. 20. Main Awards and Acknowledgments in the period: -- For the sixth consecutive year, Bradesco was selected as a part of the Dow Jones Sustainability Index 2011, a select list prepared by the New York Stock Exchange comprising companies with the best sustainable development practices. -- Ranked 4th in the "World's Greenest Companies" list prepared by Newsweek magazine, made up of companies with the best social and environmental responsibility practices in the world, becoming the only Brazilian company to hold position among the top 15. -- The only financial institution to stand out in the "Best Companies for Shareholders 2011" award, among companies with a market capitalization greater than R$15 billion (Capital Aberto magazine); -- For the twelfth consecutive year, Bradesco was one of the "100 Best Companies to Work for in Brazil" (Epoca magazine); -- The Best Financial Institution to Work for in Brazil (Guia Voce S/A Exame - "The Best Companies to Work for 2011"); -- For the fifth consecutive time, Grupo Bradesco Seguros leads the ranking of Brazilian insurers, in the 2011 edition (Valor 1000 Yearbook); -- Grupo Bradesco Seguros stood out in the As Melhores da Dinheiro yearbook, in the "Insurance and Pension Plan" and "Health" categories (IstoE Dinheiro magazine); and -- Grupo Bradesco Seguros, the largest insurance conglomerate in Brazil, was recognized by the 2011 edition of Maiores e Melhores yearbook (Exame magazine) 21. With regards 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 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, focused on education, the environment, culture and sports. The highlight in this area is Fundacao Bradesco, which has been developing an extensive social and educational program that operates 40 schools throughout Brazil. In 2011, a forecasted budget of R$307.994 million will help serve more than 526 thousand people, 111 thousand of which through its own schools, in Basic Education, from Kindergarten to High School and Vocational Training - High School Level; Education for Youth and Adults; and Preliminary and Continued Education. In the Virtual School (Fundacao Bradesco's e-learning portal), at the CIDs (Digital Inclusion Centers) and through other programs, like Educa+Acao, over 415 thousand people will be served. The more than 50 thousand Basic Education students receive uniforms, school supplies, meals and medical and dental assistance free of charge. For 54 years, Fundacao Bradesco has provided more than 2 million students with quality formal education free of charge, who, together with participants in in-class and distance courses, bring the number of participants to over 4 million people.
(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) R$105.792 billion considering the closing price of preferred shares (most traded share); (4) Includes sureties and guarantees, letters of credit, advances of credit card receivable, co-obligation in loan assignment (receivables-backed investment funds and mortgage-backed receivables), co-obligation in rural loan assignment, and operations with Credit Risk - Commercial Portfolio, which includes debentures and promissory notes; (5) Accumulated over 12 months; and (6) Banco24Horas ATMs + ATM terminals shared among Bradesco, Banco do Brasil and Banco Santander. (7) Support Rating is an assessment of possible support for a company given by its shareholders or by official authorities in times of crisis.
Mrs. Ivani Benazzi de Andrade
or Mr. Carlos Tsuyoshi Yamashita
Tags: Banco Bradesco S/A, October 26, Portugal, Sao paulo