Banco Bradesco 2013 Results

SAO PAULO, Jan. 30, 2014 /PRNewswire/ -- The main figures obtained by Bradesco (NYSE: BBD, BBDO; Latibex: XBBDC; BM&FBOVESPA: BBDC3, BBDC4) in 2013 are presented below:

1. Adjusted Net Income⁽¹⁾ for 2013 stood at R$12.202 billion (a 5.9% increase compared to the R$11.523 billion recorded in the same period last year), corresponding to earnings per share of R$2.91 and Return on Average Adjusted Shareholders' Equity⁽²⁾ of 18.0%.
2. Adjusted Net Income is composed of R$8.462 billion from financial activities, representing 69.3% of the total, and R$3.740 billion from insurance, pension plan and capitalization bond operations, which accounted for 30.7%.
3. On December 31, 2013, Bradesco's market capitalization stood at R$128.085 billion⁽³⁾. As of May 2013, Bradesco common shares compose the Ibovespa index.
4. Total Assets stood at R$908.139 billion in December 2013, a 3.3% increase over the same period in 2012. Return on Total Average Assets was 1.4%.
5. The Expanded Loan Portfolio⁽⁴⁾ stood at R$427.273 billion in December 2013, up 10.8% during the same period in 2012. Operations with individuals totaled R$130.750 billion (up 11.2% on December 2012), while operations with companies totaled R$296.523 billion (up 10.6% on December 2012).
6. Assets under Management stood at R$1.260 trillion, a 2.8% increase from December 2012.
7. Shareholders' Equity stood at R$70.940 billion in December 2013, up 1.3% on December 2012. Capital Adequacy Ratio (Basel III) stood at 16.6% in December 2013, 12.3% of which fell under Tier I Capital.
8. Interest on Shareholders' Equity and Dividends were paid and recorded in provision to shareholders totaling R$4.078 billion on income for 2013, R$1.803 billion of which was paid as monthly and interim interest and R$2.275 billion was recorded in provision.
9. Interest Financial Margin stood at R$42.686 billion, up 1.6% in comparison with 2012.
10. The Delinquency Ratio over 90 days dropped 0.6 p.p. in the last 12 months and stood at 3.5% on December 31, 2013 (4.1% on December 31, 2012).
11. The Efficiency Ratio⁽⁵⁾ in December 2013 stood at 42.1% (41.5% in December 2012), whereas the "adjusted to risk" ratio stood at 52.1%, (52.7% in December 2012).
12. Insurance Written Premiums, Pension Plan Contributions and Capitalization Bond Income totaled R$49.752 billion in 2013, up 12.3% over 2012. Technical Reserves stood at R$136.229 billion, up 9.7% on December 2012.
13. Investments in infrastructure, information technology and telecommunications amounted to R$4.842 billion in 2013, up 9.8% over the same period last year.
14. Taxes and contributions, including social security, paid or recorded in provision, amounted to R$21.758 billion, of which R$9.902 billion referred to taxes withheld and collected from third parties and R$11.856 billion from Bradesco Organization activities, equivalent to 97.2% of Adjusted Net Income⁽¹⁾.
15. Bradesco has an extensive customer service network in Brazil, with 4,674 Branches and 3,586 Service Branches - PAs. Customers can also use 1,180 PAEs – ATMs (Automatic Teller Machines) in companies, 46,851 Bradesco Expresso service points, 33,464 Bradesco Dia & Noite ATMs and 14,739 Banco24Horas ATMs.
16. Payroll, plus charges and benefits, totaled R$11.013 billion. Social benefits provided to the 100,489 employees of the Bradesco Organization and their dependents amounted to R$2.702 billion, while investments in training and development programs totaled R$126.836 million.
17. For the ninth consecutive year, Bradesco was selected to compose the Corporate Sustainability Index (ISE) of BM&FBovespa – Securities, Commodities and Futures Exchange, which reflects the returns of a share portfolio comprising those companies with the best performance in all aspects of corporate sustainability.
18. Major Awards and Acknowledgments in the period:

• - Bradesco was considered the best bank in Latin America, ranking first among the 25 best banks in Latin America (AmericaEconomia magazine);
• - Bradesco was considered the largest private group in Brazil according to the Valor Grandes Grupos ranking, which ranks the country's 200 largest groups (Valor Economico newspaper);
• - Bradesco was recognized as the best Bank in Brazil (Best Developed and Emerging Markets Banks 2013 – Global Finance Magazine);
• - Bradesco was considered the best bank in the 8th Best Companies for Shareholders Award (Capital Aberto magazine / Stern Stewart do Brasil Advisory Services);
• - Bradesco was leader of the Top MVP ranking as the company that most produces value from interaction with its stakeholders (Dom Strategy Partners Advisory Services);
• - Winner of the Value Creation Award, promoted by Abrasca, aiming at stimulating good corporate governance practices;
• - Winner of the first edition (2013) of the Top Case Award, in the Top Case Highlight category (Case Studies – Insight Communication magazine);
• - Bradesco was considered the best bank in people management, according to The Best in People Management survey (Valor Carreira/Valor Economico newspaper, with technical support of Aon Hewitt); and
• - Grupo Bradesco Seguros was granted the Most Admired Companies in Brazil Award in the Corporate Healthcare Plan and Social Security categories (Carta Capital magazine).

With regards to sustainability, Bradesco divides its actions into three pillars: (i) Sustainable Finances, focused on banking inclusion, social and environmental variables for loan approvals and product offerings; (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. 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 2013, a budget of R$456.966 million benefited 101,781 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 9 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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