Bradesco's 1Q11 HighlightsBy Banco Bradesco S.a., PRNE
Tuesday, April 26, 2011
SAO PAULO, April 27, 2011 - The main figures obtained by Bradesco (BM&FBovespa: BBDC3; BBDC4), (NYSE:
BBD) in the first quarter of 2011 are presented below:
1. Adjusted Net Income(1) in the first quarter of 2011 was R$2.738
billion (an increase of 27.5% compared to R$2.147 billion in the same period
of 2010), corresponding to earnings per share of R$2.72 in the last 12 months
and Return on Average Shareholders' Equity(2) of 24.2%.
2. Adjusted Net Income was composed of R$1.977 billion from banking
activities, which represented 72% of the total, and R$761 million from
insurance, private pension plans and savings bond operations, which accounted
for 28% of the total.
3. On March 31, 2011, Bradesco's market capitalization stood at R$117.027
billion(3), while the value of preferred shares rose by 15.7%(4) in the last
12 months, against a 2.5% depreciation of the Ibovespa index.
4. Total Assets stood at R$675.387 billion in March 2011, an increase of
26.8% from the balance in the same period in 2010. Return on Average Assets
5. The Expanded Loan Portfolio(5) stood at R$304.374 billion in March
2011, up 22.6% from the same period in 2010. Operations with individuals
totaled R$100.079 billion (up 16.4%), while operations with companies totaled
R$204.295 billion (up 25.9%).
6. Total Assets under Management stood at R$919.007 billion, an increase
of 24.2% from March 2010.
7. Shareholders' Equity stood at R$51.297 billion in March 2011 and
included a capital increase in the amount of R$1.511 billion, up by 19.1% on
the balance of March 2010. The Capital Adequacy Ratio (Basel II) stood at
15.0% in March 2011, 13.4% of which under Tier I Capital.
8. Interest on Shareholders' Equity and Dividends were paid and
provisioned to shareholders, in the amount of R$924 million related to the
first quarter of 2011, of which R$104 million as monthly dividends paid and
R$820 million provisioned.
9. The Financial Margin reached R$9.362 billion, up 21.8% in comparison
to the first quarter of 2010.
10. The Delinquency Ratio over 90 days stood at 3.6%, down 0.8 p.p. from
11. The Efficiency Ratio(6) stood at 42.7% (41.2% in March 2010) and in
the concept of "adjusted-to-risk" ratio stood at 52.1% in March 2011 (55.4%
in March 2010).
12. Insurance Written Premiums, Pension Plan Contributions and Savings
Bond Income totaled R$7.850 billion in the first quarter of 2011, up by 9.1%
over the same period in 2010. Technical provisions stood at R$89.980 billion,
equal to 30.4% of the Brazilian insurance market (reference date:
13. Investments in infrastructure, information technology and
telecommunication amounted to R$865 million in the first quarter of 2011, for
growth of 13.1% when compared to the same period in the previous year.
14. Taxes and contributions, including social security, paid or
provisioned, amounted to R$4.973 billion, of which R$1.745 billion
corresponded to taxes withheld and collected from third parties and R$3.228
billion based on the activities of Bradesco Organization, equivalent to
117.9% of Adjusted Net Income(1).
15. Banco Bradesco has an extensive distribution network in Brazil, with
6,619 Service Points (3,651 Branches, 1,308 PABs and 1,660 PAAs). Customers
can also use 1,588 PAEs, 27,649 Bradesco Expresso service points, 6,218 Banco
Postal (Postal Bank) branches, 32,514 own ATMs in the Bradesco Dia&Noite
network and 11,749 ATMs shared with other banks(7).
16. Employee payroll, plus charges and benefits, totaled R$2.080 billion.
Social benefits provided to the 96,749 employees of the Bradesco Organization
and their dependents amounted to R$495.444 million, while investments in
training and development programs totaled R$19.282 million.
17. On April 7, 2011, Fitch raised Bradesco's long and short-term IDRs,
reflecting the Bank's sound financial strength. Bradesco's long term foreign
currency IDR moved from 'BBB' to 'BBB+, while the long-term domestic currency
IDR rating moved from 'BBB +' to 'A -' and the short term IDR in domestic
currency increased from 'F2' to 'F1.' Bradesco Seguros' Issuer Financial
Strength (IFS) rating was raised from 'BBB+' to 'A-'.
18. On March 25, 2011, Bradesco requested authorization by the Brazilian
Central Bank to create an ADR program backed by common shares on the American
market, which included an increase in the limit on foreign interest that will
not change its corporate structure or control.
19. As of April 4, 2011, Bradesco, Banco do Brasil and Caixa Economica
Federal began to offer cards through the Brazilian brand Elo. The new brand's
goal is to reach 15% of the domestic market in up to 5 years and become the
most complete and modern means of payment platform in the country.
20. Main Awards and Recognitions in the first quarter of 2011:
-- 6th most valuable brand in the global banking sector. This is the first time that a bank from an emerging economy has reached this position (Brand Finance Global Banking 500 - 2011 - The Banker magazine); -- The most valuable brand in Brazil, a position Bradesco has held since 2007, according to a survey released by the consultant Brand Finance. In a global ranking of 500 companies, Bradesco came in 28th; -- One of the 100 most sustainable companies in the world, according to the 7th edition of the "Global 100" ranking (Corporate Knights magazine); -- Bradesco Seguros was the winner of the 18th edition of the "Top of Quality 2010" prize in the "Insurance and Pension Plan" category (Top of Business magazine and CNEP); and -- Bradesco Asset Management (Bram) received the "Top Management" Prize from ValorInveste magazine, published by the Valor Economico newspaper, a recognition of the best fund managers in the country (Standard & Poor's).
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 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$307.994 million will help serve more than 526 thousand
people, 111 thousand of which through its own schools, in Basic Education,
from Kindergarten to High School and Vocational Training - High School Level;
Education for Youth and Adults; and Preliminary and Continued Education. In
the Virtual School - Fundacao Bradesco's e-learning portal - at the CIDs -
Digital Inclusion Centers and through programs conducted under strategic
partnerships, like Educa+Acao, over 415 thousand students will be served. The
more than 50 thousand Basic Education students receive uniforms, school
supplies, meals and medical and dental assistance free of charge. For 54
years, Fundacao Bradesco has provided more than 2 million students with
quality formal education free of charge, who, together with participants in
in-class and distance courses, bring the number of participants to over 4
(1) According to non-recurring events described on page 08 of this Report
on Economic and Financial Analysis; (2) Excludes mark-to-market effect of
available-for-sale securities recorded under Shareholders' Equity; (3) R$
127.474 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, advances of
credit card receivables and credit assignments (receivables-backed investment
funds and mortgage-backed receivables) and operations with Credit Risk -
Commercial Portfolio (expanded criteria), 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.
Contact: Mrs. Ivani Benazzi de Andrade, Phone: +55-11-2178-6218, e-mail: firstname.lastname@example.org or Mr. Carlos Tsuyoshi Yamashita, Phone: +55-11-2178-6204, e-mail: email@example.com
Tags: April 27, Banco Bradesco S/A, Brazil, Sao paulo