Banco Bradesco S.A. - 1H11 Earnings Results

By Banco Bradesco S.a., PRNE
Tuesday, July 26, 2011

SAO PAULO, July 27, 2011 -

The main figures obtained by Bradesco (BM&FBovespa: BBDC3; BBDC4), (NYSE: BBD) in the first half of 2011 are presented below:

1. Adjusted Net Income(1) in the first half of 2011 was R$5.563 billion (an increase of 20.9% compared to R$4.602 billion in the same period of 2010), corresponding to earnings per share of R$2.82 in the last 12 months and Return on Average Shareholders’ Equity (2) of 23.2%.

2. Adjusted Net Income was composed of R$4.002 billion arising from financial activities, which represented 71.9% of the total, and R$1.561 billion from insurance, private pension plans and savings bond operations, which accounted for 28.1% of the total.

3. On June 30, 2011, Bradesco’s market capitalization stood at R$111.770 billion(3), while the value of preferred shares rose by 28.3%(4) in the last 12 months, against a 2.4% appreciation of the Ibovespa index.

4. Total Assets stood at R$689.307 billion in June 2011, an increase of 23.5% from the balance in the same period in 2010. Return on Average Assets was 1.7%.

5. The Expanded Loan Portfolio(5) stood at R$319.802 billion in June 2011, up 23.1% from the same period in 2010. Operations with individuals totaled R$102.915 billion (up 14.6%), while operations with companies totaled R$216.887 billion (up 27.6%).

6. Total Assets under Management stood at R$933.960 billion, an increase of 21.6% from June 2010.

7. Shareholders’ Equity stood at R$52.843 billion in June 2011, up by 19.3% on the balance of June 2010. The Capital Adequacy Ratio stood at 14.7% in June 2011, 12.9% of which under Tier I Capital.

8. In the first half of 2011, Interest on Shareholders’ Equity and Dividends were paid and provisioned to shareholders in the amount of R$1,876 million, of which R$940 million as monthly and interim dividends paid and R$936 million provisioned.

9. The Financial Margin reached R$18.833 billion, up 19.7% in comparison with the first half of 2010.

10. The Delinquency Ratio over 90 days stood at 3.7%, down 0.3 p.p. from June 2010.

11. The Efficiency Ratio(6) stood at 42.7% (42.0% in June 2010) and in the concept of “adjusted to- risk” ratio stood at 52.2% in June 2011 (54.6% in June 2010).

12. Insurance Written Premiums, Pension Plan Contributions and Savings Bond Income totaled R$17.511 billion in the first half of 2011, up by 22.0% over the same period in 2010. Technical provisions stood at R$93.938 billion, equal to 30.2% of the Brazilian insurance market (reference date: May/11).

13. Investments in infrastructure, information technology and telecommunications amounted to R$1.740 billion in the first half of 2011, for growth of 1.9% when compared to the same period in the previous year.

14. Taxes and contributions, including social security, paid or provisioned, amounted to R$11.028 billion, of which R$3.992 billion referring to taxes withheld and collected from third parties and R$7.036 billion based on the activities of Bradesco Organization, equivalent to 126.5% of Adjusted Net Income(1).

15. Banco Bradesco has an extensive customer service network in Brazil, comprising 6,648 service points (3,676 branches, 1,313 PABs - Banking Service Branches and 1,659 PAAs Advanced Service Branches). Customers can also use 1,587 PAEs (ATMs in companies), 29,263 Bradesco Expresso service points, 6,227 Postal Bank branches, 32,714 own ATMs in the Bradesco Dia&Noite network and 12,389 ATMs shared with other banks(7).

16. Employee payroll, plus charges and benefits, totaled R$4.233 billion. Social benefits provided to the 98,317 employees of the Bradesco Organization and their dependents amounted to R$1.006 billion, while investments in training and development programs totaled R$58.048 million.

17. On May 20, 2011, Bradesco acquired the shareholding control of Banco do Estado do Rio de Janeiro S.A. (BERJ). The operation guarantees Bradesco the right to provide services to the state of Rio de Janeiro relating to the payment of 440 thousand state servants, as well as the payment to suppliers and of state taxes, among other services.

18. On June 20, 2011, Moody┬┤s Investors Service upgraded Bradesco’s foreign currency ratings: the long-term deposit rating went from ‘Baa3′ to ‘Baa2′ and the short-term deposit rating from ‘Prime-3′ to ‘Prime-2′. The long-term senior debt rating was also upgraded from ‘Baa2′ to ‘Baa1′.

19. Main Awards and Acknowledgments in the second quarter of 2011:

- Brazil’s major private group in the world’s leading companies ranking (Forbes magazine);

- The best Publicly-Held Company in 2010 elected by the Association of Analysts and Capital Market Professionals (Apimec);

- Brazil’s most solid bank and the world’s 8th strongest bank (Bloomberg News);

- The best institutional investment fund manager (Investidor Institucional magazine);

- 1st place among the “10 Major Groups in Revenue” ranking, in the category “Financial Institution” of the 2011 edition of Exame magazine’s Melhores e Maiores (The Best and the Major Companies);

- Bradesco and Bradesco Asset Management (BRAM) ranked 1st and 2nd, respectively, in the AE Projecoes ranking, in the category “Basic Top 10″ (AE/Broadcast);

- Best Company in Customer Service in 2010 (Exame magazine with the Ibero-Brazilian Institute of Customer Relations (IBRC)); and

- The best company, among financial institutions, to start a career in (Voce S/A magazine in partnership with Fundacao Instituto de Administracao (FIA) and Cia. De Talentos).

20. 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 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 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 elearning 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 08 of the Report on Economic and Financial Analysis; (2) Excludes mark-to-market effect of available-for-sale securities recorded under Shareholders’ Equity; (3) R$121.167 billion considering the closing price of preferred shares (most traded share); (4) Includes reinvestment of dividends/interest on shareholders’ equity; (5) 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; (6) Accumulated over 12 months; and (7) Banco24Horas ATMs + ATM terminals shared among Bradesco, Banco do Brasil and Banco Santander.

Mrs. Ivani Benazzi de Andrade
Phone: +55-11-2178-6218

or Mr. Carlos Tsuyoshi Yamashita
Phone: +55-11-2178-6204


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