Banco Bradesco 1Q14 Results

SAO PAULO, April 24, 2014 /PRNewswire/ -- The main figures obtained by Bradesco (NYSE: BBD, BBDO; Latibex: XBBDC; BM&FBOVESPA: BBDC3, BBDC4) in the First Quarter of 2014 are presented below:

1. Adjusted Net Income⁽¹⁾ for the First Quarter of 2014 stood at R$ 3.473 billion (an 18.0% increase compared to the R$ 2.943 billion recorded in the same period of 2013), corresponding to earnings per share of R$ 3.03 and Return on Average Adjusted Equity⁽²⁾ of 20.5%.
2. Adjusted Net Income is composed of R$ 2.433 billion from financial activities, representing 70.0% of the total, and R$ 1.040 billion from insurance, pension plan and capitalization bond operations, which accounted for 30.0% of the total.
3. On March 31, 2014, Bradesco's market capitalization stood at R$ 135.938 billion⁽³⁾.
4. Total Assets stood at R$ 922.229 billion in March 2014, up 3.1% over March 2013. Return on Average Assets came to 1.5%.
5. In March 2014, the Expanded Loan Portfolio⁽⁴⁾ came to R$ 432.297 billion, up 10.4% over the same period of 2013. Operations with individuals totaled R$ 132.652 billion (up 11.5% over March 2013), while operations with companies totaled R$ 299.645 billion (up 9.9% over March 2013).
6. Assets under Management stood at R$ 1.278 trillion, a 2.8% increase from March 2013.
7. Shareholders' Equity stood at R$ 73.326 billion in March 2014, up 5.6% on March 2013. The Capital Adequacy Ratio stood at 15.7% in March 2014, 11.9% 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$ 1.212 billion for the first quarter of 2014, R$ 248.712 million of which was paid as monthly and interim interest and R$ 963.489 million was recorded in provision.
9. Interest Earning Portion stood at R$ 10.951 billion, up 4.2% compared to the first quarter of 2013.
10. The Delinquency Ratio over 90 days dropped 0.6 p.p. in the last 12 months and stood at 3.4% on March 31, 2014 (4.0% on March 31, 2013).
11. Efficiency Ratio (ER)⁽⁵⁾ in March 2014 was 41.9% (41.5% in March 2013), whereas the "adjusted-to-risk" ratio stood at 51.4% (52.6% in March 2013). It is worth mentioning that, in the first quarter of 2014, we recorded the best quarterly ER (40.1%) in the past 5 years.
12. Insurance Written Premiums, Pension Plan Contributions and Capitalization Bond Income totaled R$ 11.450 billion in the first quarter of 2014, up 4.5% over the same period in 2013. Technical Reserves stood at R$ 137.751 billion, up 8.2% on March 2013.
13. Investments in infrastructure, information technology and telecommunications amounted to R$ 1.580 billion in the first quarter of 2014, up 46.6% over the same period last year.
14. Taxes and contributions, including social security, paid or recorded in provision, amounted to R$ 6.240 billion, of which R$ 2.258 billion referred to taxes withheld and collected from third parties, and R$ 3.982 billion from Bradesco Organization activities, equivalent to 114.7% of the Adjusted Net Income⁽¹⁾.
15. Bradesco has an extensive customer service network in Brazil, with 4,678 Branches and 3,484 Service Branches - PAs. Customers can also use 1,186 PAEs – ATMs (Automatic Teller Machines) in companies, 47,430 Bradesco Expresso service points, 32,909 Bradesco Dia & Noite ATMs, and 15,386 Banco24Horas ATMs.
16. Payroll, plus charges and benefits, totaled R$ 2.786 billion. Social benefits provided to the 99,545 employees of the Bradesco Organization and their dependents amounted to R$ 697.236 million, while investments in training and development programs totaled R$ 17.450 million.
17. In April 2014, Bradesco and Banco do Brasil, via its subsidiary Companhia Brasileira de Solucoes e Servicos ("CBSS"), in a partnership with Cielo, created the company STELO S.A. ("Stelo"), an electronic payment company responsible for managing, operating and exploring the payment facilitator industry geared towards e-commerce, as well towards digital portfolio businesses.
18. Major Awards and Acknowledgments in the period:

• Bradesco was considered the most valuable brand in Latin America in the banking segment and the 20th in the general ranking of top 500 most valuable global brands in the segment (The Banker magazine / Brand Finance); and
• Bradesco Private Bank was recognized as the best of Brazil under the "Specialized Services" category (Euromoney Magazine - Special edition Private Banking Global Survey 2014).

Since its origin, the Bradesco Organization is fully committed to Brazil's social and economic development. We constantly seek to attain sustainability in management, businesses, and daily activities. Under such purpose, we strive to ensure continuous and sustainable growth, committed to the audiences to which we relate, as well as the communities and environments in which we operate. We fully comply with best global sustainability and corporate governance practices, particularly: Global Compact, PRI (Principles for Responsible Investment), Equator Principles, Carbon Disclosure Project and Green Protocol. Our sustainability actions, strategies, and guidelines are supported by best corporate governance practices. The Organization's main activities focus on banking inclusion, social and environmental variables for loan approvals and product offerings, based on social and environmental aspects. Regarding responsible management and engagement with stakeholders, we highlight activities surrounding valuing professionals, improving the workplace, client relations, managing suppliers, and adopting environmental management practices. We also highlight the Organization's role in society as one of the top social investors in Brazil, supporting education, environment, culture, and sports projects.

In this area, we point out Fundacao Bradesco, which has a 57-year history of extensive social and educational work, with 40 schools in Brazil. In 2014, an estimated budget of R$ 523.434 million will benefit approximately 105,672 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.

Contact: Ivani Benazzi de Andrade +011-55-11-2178-6218, [e-mail] or Carlos Tsuyoshi Yamashita, +011-55-11-2178-6204, [e-mail]  both of Banco Bradesco

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