Banco Bradesco Announces 9m10 Earnings Results

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28th October 2010, 05:59am - Views: 1434

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Banco Bradesco Announces 9M10 Earnings Results

SAO PAULO, Oct. 28 /PRNewswire-AsiaNet/ --

    The main figures obtained by Bradesco (NYSE: BBD; BOVESPA: BBDC4; Latibex: XBBDC)

in the first nine months of 2010 are presented below:

    1.  Adjusted Net Income(1) in the period was R$7.120 billion (an increase 

        of 23.9% from R$5.747 billion in the same period of 2009), 

        corresponding to earnings per share of R$2.38 accrued over twelve 

        months and Return on Average Shareholders' Equity(2) of 22.5%.

    2.  Adjusted Net Income was composed of R$4.995 billion from financial 

        activities, which represented 70% of the total, and R$2.125 billion 

        from insurance, private pension and savings bond operations, which 

        accounted for 30% of the total.

    3.  On September 30, 2010, Bradesco's market capitalization stood at 

        R$114.510 billion(3), while the value of preferred shares rose by 

        19.6%(4) in the last twelve months. 

    4.  Total Assets stood at R$611.903 billion in September 2010, an increase 

        of 26.0% from the balance in the same period in 2009. Return on 

        average assets was 1.7%.

    5.  The Total Loan Portfolio(5) stood at R$255.618 billion in September 

        2010, up 18.6% from the same period in 2009. Operations with 

        individuals totaled R$92.905 billion (up 23.0%), while operations with 

        companies totaled R$162.713 billion (up 16.2%).

    6.  Total Assets under Management stood at R$838.455 billion, an increase 

        of 24.3% from September 2009.

    7.  Shareholders' Equity was R$46.114 billion in September 2010, 

        increasing by 18.6% from the balance in the same period a year 

        earlier. The Capital Adequacy Ratio (Basel II) stood at 15.7% in 

        September 2010, 13.5% of which under Tier I Capital.

    8.  In the first nine months of 2010, Interest on Shareholders' Equity and 

        Dividends in the amount of R$4.160 billion were paid and provisioned, 

        of which R$2.408 billion were related to income generated in the 

        period (R$938 million in interim and monthly dividends paid and 

        R$1.470 billion provisioned) and R$1.752 billion to income from fiscal 

        year 2009 (R$43 million monthly paid on January 4, 2009 and additional 

        payments of R$1.709 billion paid on March 9, 2010).

    9.  The Efficiency Ratio(6) stood at 42.5% in September 2010 (40.9% in 

        September 2009) and the "adjusted-to-risk" ratio stood at 53.3% in 

        September 2010 (55.8% in September 2009).

    10. Insurance Written Premium, Pension Plan Contributions and Savings 

        Bonds Income totaled R$22.056 billion in the first nine months of 

        2010. Technical provisions stood at R$82.363 billion, equal to 31.1% 

        of the Brazilian insurance market (period: August/10).

    11. Investments in infrastructure, information technology and 

        telecommunication amounted to R$2.694 billion in the first nine months 

        of 2010, growth of 8.1% compared to the same period in 2009.

    12. In the nine month period of 2010, taxes and contributions, including 

        social security, paid or provisioned, amounted to R$10.766 billion, of 

        which R$4.398 billion corresponded to taxes withheld and collected 

        from third parties, and R$6.368 billion corresponded to taxes levied 

        on the activities of Bradesco Organization is active in the first nine 

        months of 2010, equal to 89.4% of Adjusted Net Income.  

    13. Banco Bradesco has an extensive distribution network in Brazil, with 

        6,374 Branches, PAB mini-branches and PAAs (3,498 Branches, 1,233 PABs 

        and 1,643 PAAs). Customers can also use 1,559 PAEs, 31,759 ATMs in the 

        Bradesco Dia&Noite network, 24,887 Bradesco Expresso service points, 

        6,194 Banco Postal (Postal Bank) branches and 9,248 ATMs in the 

        Banco24Horas (24HourBank) network.

    14. In the first nine months of 2010, employee payroll plus charges and 

        benefits totaled R$5.717 billion. Social benefits provided to the 

        92,003 employees of the Bradesco Organization and their dependents 

        amounted to R$1.332 billion, while investments in training and 

        development programs totaled R$68.286 million.

    15. In August 2010, Odontoprev S.A. and its parent companies Bradesco 

        Seguros S.A. and ZNT Empreendimentos, Comercio e Participacoes Ltda. 

        entered into a Memorandum of Understanding with BB Seguros 

        Participacoes S.A. to start a strategic alliance for the development 

        and sale of dental insurance. 

    16. In August 2010, Bradesco and Banco do Brasil entered into a Memorandum 

        of Understanding with Caixa Economica Federal seeking the 

        participation of the latter in a company to be formed in order to 

        manage "Elo," the new Brazilian brand of credit, debit and prepaid 

        cards to be offered to account holders and non-account holders of the 

        respective banks. 

    17. In September 2010, Bradesco entered into an agreement with CPM Braxis 

        and its shareholders to transfer the controlling interest in CPM 

        Braxis to Capgemini S.A., through which it acquired 55% of shares 

        issued by CPM Braxis. 

    18. Main Awards and Recognitions in the third quarter of 2010:

        -- Bradesco received the Escore GAMMA 7 awarded by Standard & Poor's 

           Governance Services for its strong corporate governance standards. 

           The highest Escore GAMMA Governance rating ever awarded worldwide 

           was a 7+.

        -- Bradesco continued as a component of the Dow Jones Sustainability 

           Index (DJSI) of the New York Stock Exchange in 2010, an indicator 

           that lists the best companies worldwide in terms of Corporate 

           Governance and social and environmental responsibility practices;

        -- Bradesco was chosen one of the 100 Best Companies of the Year in 

           the "2010 Organizational Human Development Indicator Award";

        -- Grupo Bradesco de Seguros e Previdencia was a general leader in the 

           annual Valor 1000 in the following rankings: Insurance, Life and 

           Pension Plan and Health (Valor 1000 magazine);

        -- For the 6th time, Bradesco Saude received the Estadao RH Top of 

           Mind award in the "health insurance" category (Estado de Sao Paulo 

           newspaper / Felix Editora);

        -- Organizacao Bradesco was chosen as the Best Bank in HR and Social 

           Responsibility, Best Insurance Company and Best Health Company in 

           the annual publication As Melhores da Dinheiro (IstoE Dinheiro 

           magazine); and

        -- For 11 years, Bradesco has been one of the "100 Best Companies to 

           Work for in Brazil (Epoca magazine)."

    19. In relation 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 for 53 

        years has been developing a broad social and educational program that 

        operates 40 schools across Brazil. In 2010, a R$268.010 million 

        budget will provide over 660 thousand service events, of which 112 

        thousand were provided to students in its own schools. In addition, 

        the 50 thousand elementary education students are also provided with 

        uniforms, school supplies, meals and health and dental assistance, all 

        free of charge. Over 550 thousand students will be served through 

Business Banking Banco Bradesco S.A. 3 image

        the Virtual School, its e-learning portal, through the Digital 

        Inclusion Centers (CIDs) and through programs conducted under 

        strategic partnerships, like Educa+Acao.

    (1) According to the non-recurring events described on page 08 of the Report on

Economic and Financial Analysis; (2) Excludes the effects from asset valuation

adjustments registered under shareholders' equity; (3) R$127.6 billion considering

the total number of shares (less treasury shares) x closing quote for preferred

shares on last day in period (most net share); (4) Considering the 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 (6) Accumulated over 12



    Mrs. Ivani Benazzi de Andrade, phone: (55 11) 2178-6218 or

    Mr. Carlos Tsuyoshi Yamashita, phone: (55 11) 2178-6204.

    SOURCE: Banco Bradesco S.A.

    CONTACT: Mrs. Ivani Benazzi de Andrade


          or Mr. Carlos Tsuyoshi Yamashita


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