Transcription
th4QUARTERRESULTS20211
Highlights20212
FINANCIAL HIGHLIGHTS 2021Recurring NetIncomeR 26.2bi34.7% 21/2018.1%Insurance, PensionPlans andCapitalization BondsR 11.5bi5.5% 21/20R 812.7bi3.3 p.p. 21/20(Accumulated in 12 Months)46.0%R 55.5bi6.5% 21/20R R 88bi34.1bi4.1% 21/20Payment of Interest/ DividendsCredit Release onDigital ChannelsIndividuals: R 52bi36% 21/200.3 p.p. 21/20Fee and CommissionIncomeClient NIIExpanded LoanPortfolio18.3% 21/20Operating EfficiencyRatio (ER)ROAEAccumulated(Gross – Accumulated)R 9.2biPayout 21: 44%67% 21/203
SUSTAINABILITY AT BRADESCOCLIMATE CHANGE AND SUSTAINABLE DEVELOPMENTNet ZeroCommitmentto achieve net zeroemissions by 2050OperationalEmissionsFinanced emissions100%compensatedsince 2020The mostrelevantto a bankScope 1, 2 and 3Leadingproponentsin the transitionto a low-carboneconomy in BrazilA pioneer in measuringand releasing financedemissions from theCorporate portfolioScope 3Supporting and engaging our clientsto adapt their businesses and become more resilient to climate changeEncouragingtransparency andmeasurementof emissionsarising from llenges ofeach sectorStimulatingthe creationof transitionplansFinancingclimatesolutions Differentiatedlines of credit Capital marketsolutions4
SUSTAINABILITY AT BRADESCOSUSTAINABLE BUSINESSStatus of target announced in 2021AllocateR 250 billionfor sustainablebusinesses upto 2025R 83.6 billionalready allocated33%Dec-25Dec-21ISSUANCE OF OUR FIRST SUSTAINABLE BOND ON THEINTERNATIONAL MARKETAmountUS 500 millionTerm60 monthsCoupon4.375% SustainabletransportationWater DGEMENTSFor the 4th year in arow, in top 10 banksglobal leaders insustainabilityon the DJSIParticipation in theISE for the 17thtime in a row andin the 1st portfolioof the IGPTW, B3'slatest index withan ESG focusAbove average rating bymajor ESG indices and ratingsSPO:5
RESPECT AND CARE FOR PEOPLE – DIVERSITY AND INCLUSIONWomenBlack People51%27%of staffof staff35%22%in leadershippositionsin leadershippositionsPwDYouth5%of CT: Permanent Crisis Management andensuring security in a gradualrecovery plan First major bank in Brazil to commitadopting remote work after thepandemic Psychosocial support channel, LigViva Bem, provides 24/7 service foremployees and their families Introduction of Meu DoutorNovamed Clinic and BradescoDental in Cidade de DeusApprenticesCOMMITMENTS :INCLUSION PROGRAMS: Gender – Partnership with Laboratóriafor the inclusion of women in IT PwD – Bradesco training program forpeople with disabilities, in partnershipwith Fundação Bradesco Ethnic racial – Bradesco InternshipProgram, in partnership withUniversidade Zumbi dos Palmares6
CUSTOMER CENTRICITYPromoting THE BEST EXPERIENCE FOR CLIENTS at all points ofinteraction, going far beyond financial productsStrengthening theCustomer Experience (CX)End-to-end vision for creating intuitiveand personalized journeysNew digital products andservices, a step beyond financialproductsCX Analytics & MetricsData-driven, going beyond gitalProducts andChannelsOmnichannel JourneysExploring the plurality of our channelsusing visual and voice interfacesPlatforms andEcosystemsNew platforms with a modularand flexible architecture in thecloudAgile MethodologyExperience integrated to all agileventures of the bank7
SOLUTIONS THAT IMPROVE THE CUSTOMER EXPERIENCENew features on the AppBAC FloridaFinancialManagerNew CashbackPlatformFinancial managementin one place, with OpenFinance integrationCash back directto the client'saccount100% digital journeyAvailable for High Incomeand Retail clientsConsolidated view in theBradesco AppCurrency exchange in realtime through the BradescoapplicationPARTNERSHIPSnextJoyCombo Open a digitalaccountthrough theBradesco Appfordependentsfrom 0 to 17years old,100% freeThe best ofDisney andStars for onepriceElectronic signatureOmnichannel JourneyDigital onboardingDigital Retail PlatformPortfolios managed byBlackRock Convenience for the client Business for the managerAccess to global assetsPortuguese-LanguageSupport8
RAPIDLY EXPANDING DIGITAL EXPERIENCE98%Growth in the useof Digital ChannelsIncrease of5.3 MMof Transactions arecarried out throughDigital Channels91%are concentrated onMobile and InternetMobile & InternetFinancial Transactionsin digital accountholdersGrowth of 97.8%2.123.821.2In Million12%15%Dec-19Dec/19Dec-20Dec/202019Accounts opened on the App1,783959362201986%165%20202021In Thousand Experience5x64%26%Dec-21Dec/21Growth1.31.0In Billion Autonomy18.5greater2021 vs 2019 70%Opening of MEIaccounts2021 vs 20202020In Mobile financialtransactions Individuals& Companies2021 vs 20202021Mobile & Internet (2021 vs 2020):Individuals CorporateIndividualsInvestments (R )Pension (R ) 46% 60%Issuing CardsInsuranceInvestment in Funds, LCI and LCA(Qnty.) 5.8X greaterCapitalization(R ) 114%(R ) 81%9
DIGITAL CREDIT IN GROWTHCredit authorized on Digital ChannelsTRANSFORMING ANDEVOLVING WITH THECLIENT AND SOCIETYIn R BillionInd. & Corp. HighlightsTotalIndividuals36%59%88.240%20212021 43%57%Renegotiations onDigital Channels% Bank Participation 3xtransactional modelsusing MachineLearning and AIGrowth of Credit2021 vs 202020202020 R 3.8 Bi32.9of the bank'stotal origination ons-41%Reduction indelinquencies of 30days overdue loansafter 3 monthsgranted 10xpropensity modelswith MachineLearning andArtificial Intelligence2021 vs 202033.8%CollectionDigitalizationKNOWLEDGE CUSTOMER SERVICE RIGHT PRODUCTS FOR THE CLIENTSOur unique ability to generate credit places us in a prominent position10
CARDS – EXPANSION OF CLIENT BASE 5.8xPortfolio Balance – Individuals(R Billion)Card sales throughdigital channels(20% of T212Q212T213Q213T21Of active users ondigital wallets (Apple,Google, Samsung)*Of active users in thecards app*Significant shift in the level of digitalsales and relationships9.7%3.33.0 60%4Q214T21Revenues from Services(R Billion) 108% New journeys with the implementation ofthe multichannel link and API's New cardless services on the appfor digital card use Introduction of products focused on3.02.62.7digital audiences including LIKE k in digital apps such as Uber andNetflix) and NEO (no annual fees).* 2021 vs 2020 comparison11
VEHICLES – LEADER IN MARKET SHAREAverage ProductionMarket Share in R – %3rd13.7%(Base 1Pricing by client ct-21Digital JourneysNov/21Nov-214Q214T21Dez/21Dec-21Balance Portfolio(R Billion)47.3Customized CRM l sales combo(IPVA financing, Insurance, Shielding, essoasFísicasPessoasJurídicasComplete offer of InsuranceSource: B312
BIAPioneering bankin artificialintelligence91%averageaccuracy inresponsesServes Clientsand EmployeesCross-platform – BIA where the client is1.2 BiTotalInteractionsSince 2016 60%Bradesco AppIndividuals &Corporate108.8 MilInteractions 194% 34%Jan to Dec/21WhatsApp162.8MMMobile Interactionsvia WhatsAppJan to Dec 2021Pioneering bank inthe use ofAI VOICEInteractions52 MMTransactionsJan to Dec/21of Interactions2021 vs 2019BranchesFone FácilGoogleAssistantIn a countrythat lovesto speakand beheard.AmazonAlexaAppleBusiness Chat. BIA, Bradesco'sVirtual Assistant thatRECOGNIZES THEVOICE OF CLIENTS13
ÁGORA, NEXT AND BITZClient BaseVolume UnderCustodyThousandClientsBillion548Dec 20 35.7% y/y706R 62.4 5.2% q/qR 68.4-2.6% q/qAccumulated Downloads(In Thousand)ClientsJan-22169%6,2489.97.7 6.7% y/ySep 2110MM(In ntholders3324Q20743Dec 21R 66.6(R Million)153 93%12,5393Q21App Store4.712M2012M21184Accumulated Accounts(In Thousand)4,2401004Q206,5074Q21Total Volume Transacted(Base 100)Net Funding3Q214.02,1334Q217.82184Q203Q214Q2114
FINANCIALRESULTS4Q2115
OPERATIONAL EVOLUTION6.3% y/yOperatingIncome54.6% y/yIncome Origin(Financial and Insurance Areas)11.8% y/yInsurance, PensionPlans andCapitalization BondsFee and CommissionIncomeVariation%R million4Q21202116,96263,980Net Interest Income14,77955,529Client NII2,1838,451Market NII(4,283) (15,035)Expanded ALL48,945GROSS INCOME FROM FINANCIAL INTERMED. 12,6793,52711,451Income from Ins., Pension Plans and Cap. BondsFee and Commission Income8,86434,099Operating Expenses(12,867) (46,942)Tax Exp. Equity in the earnings (losses) of(1,920)(7,391)unconsolidated and jointly controlled subsidiariesOPERATING INCOME10,28340,162Non-Oper. Income Income Tax / Social(3,670) (13,947)Contrib. Non-controlling int. in subs. OthersRECURRING NET INCOME6,61326,2154Q21x 3Q218.05.232.427.52.79.81.28.34Q21x 4Q201.811.8(36.5)(6.2)4.954.61.712.12021x (R Q21InsuranceFinancialComparison 2021 vs 2019R million201920212021x 2019Total Revenues138,012 145,6965.6%(4.1)Total Expenses49,026 46,942(4.3%)6.342.8Efficiency Ratio49.0%46.0%(3.0) p.p.(4.0)27.861.1Operating Income36,63540,1629.6%(2.3)(2.8)34.716
RECURRING NET INCOME vs BOOKR million4Q213Q214Q2020212020RECURRING NET INCOME6,6136,7676,80126,21519,458NON-RECURRING EVENTS(3,443)(119)(1,337)(4,270)(2,912)- Realization/Reclassification of Financial Instruments1(1,881)--(1,881)-- Impairment of Non-Financial Assets2(509)-(574)(509)(574)- Provision for Restructuring3(441)-(57)(441)(540)- Contingent Liabilities4(278)-(353)(278)(353)- Goodwill Amortization (Gross)(42)(81)(354)(824)(1.446)- OK NET INCOME(1) Includes result from the reclassification of securities in the portfolio from "Available for Sale" to "Trading", and turnover in the financial instruments market; (2) Includes impairment of assets related to the acquisition of rights to provide financial services (payroll),goodwill, intangible assets and systems/hardware; (3) Restructuring, mainly, in the branch network; and (4) Comprised of civil provisions.17
EXPANDED LOAN PORTFOLIO31.2% y/yReal Estate Financing– Individuals30.5% y/y24.5% y/yLoan Origination per business daySMEsCredit Cards128132Total100Variation%R millionCOMPANIESLarge corporatesTotal%4Q20Dec/21Dec/21x Sep/21Dec/21x 520.7320,7605.723.239.5Payroll-deductible Loans84,1111.920.710.4Real Estate Financing77,5955.031.29.5Credit Cards54,86215.830.56.8CDC/Vehicles Financing32,8405.811.74.0Personal Loans33,8992.821.24.2Other37,4525.017.14.6TOTAL OF EXPANDED LOAN OUT EXCHANGE VARIATION13939.8168,553Micro, Small and Medium-Sized 211001091014Q2032%3Q214Q21y/yIndividuals1%y/y18
PROVISION FOR CREDIT RISKExpanded ALL (Expenses)(R Billion)Coverage Ratio – Over 90 203Q20Expanded 1ALL 0Over 90 21Dec-21Over 90 days - Excluding 100% provisionedCoverage Ratio – Over 90 days Reneg.(R Billion)8.5%425%245%Expanded ALL / Expanded Portfolio - Annualized RateAllowance for Loan n-21Sep-21111%Dec-21ALL Balance / Bacen Portfolio* *The balance of ALL includes the balances of the Specific, Generic and Supplementary installments.19
RENEGOTIATED PORTFOLIOEvolution of the Portfolio BalanceLargeCorporate66%(R Billion)13%of the renegotiationsin the quarter wereless than 90 days .023.523.323.95.018.5Dec-19 Mar-20 Jun-20 Sep-20Dec-20 Mar-21 Jun-21 Sep-21 Dec-21Originated from portfolio in write-offOriginated from active portfolioAllowance for Loan Losses/Renegotiated Portfolio66.8% 68.2%Renegotiated Portfolio/Bacen Portfolio5.6%27.523.55.8%5.6%4.8%5.2%61.7% 61.5% 63.8% 61.9% 63.1% 62.3%Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-214.9%4.7%4.1%Delinquency Ratio Over 90 Sep-21Dec-2117.8%14.4% 14.6% 15.8%5.9%7.4%Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-2120
DELINQUENCY RATIOGross ALL Expenses vs NPLCreation 90 DaysOver 90 Days(%)(R 23.83.12.80.30.7Dec-08Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Mar-21 Jun-21 Sep-21 .0(%)4.08.04.015 to 90 214Q21NPL Creation - 90 daysGross ALL Expense – RecurrentGross ALL Expense - Recurrent / NPL Creation 90 days0.0Dec-08Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21Micro, Small and Medium-Sized EnterprisesIndividualsLarge CorporatesTotal21
NET INTEREST INCOME1.8% y/y11.8% y/y12.2% y/yNet Interest IncomeClient NIIAverage BalanceTotal Net Interest Income11.0%40,0008.9%Client NII Variation9.1%9.0%9.0%35,000(R 0%30,00025,000(R ,64816,9622,183-1.0%4Q21R millionNET INTEREST INCOME16,962202163,9804Q21x 3Q214Q21x 4Q202021 vs2020%Total4Q218.01.81.3100.0CLIENT NIIAverage BalanceAverage RateMARKET 49.1%8.7%0.1 p.p.(0.1) p.p.(0.4) 7114,77914,054-3.0%5,000-5.0%120,000-2Q21Client NII3Q21Market NII4Q21Total NIMNIM Clients12.91- Relates to the result of operations made with assets (loans and other) and liabilities sensible to spreads. The result calculation of the assets sensible to spreadconsiders the original rate of the deducted operations from the internal funding cost and the liabilities result represents the difference between the cost of raisingfunds and the internal transfer rate of these funds; and2- Composed by Assets and Liabilities Management (ALM), Trading and Working Capital.22
FEE AND COMMISSION INCOME1.7% y/yTotal Fee Income9.7% y/y11.4% y/yCard IncomeLoansOperationsVariation%Organization's Total Clients(In Million)72.570.2Total%4Q20R million4Q2120214Q21x 3Q214Q21x 4Q202021 vs2020% Total4Q21Card Income3,27211,62310.29.710.036.9Checking Account2,0317,9811.2(2.0)0.722.9Asset Management8123,296(5.5)(0.4)(3.5)9.2Loans Operations7632,7776.311.43.98.6Collections and Payments5952,411(2.0)(10.5)(7.7)6.7Consortium Management5722,203(1.0)11.914.76.5Underwriting / Financial AdvisoryServices3441,404(2.0)4.98.23.9Custody and Brokerage OTALBUSINESS DAYS74.13Q214Q21Bradesco Checking AccountHolders(In Million)32.332.62Q214Q2130.83Q20Other Clients of the Organization(In Million)39.44Q2040.23Q2141.64Q2123
OPERATING EXPENSES1.1% 21/20Total Expenses1.3% 21/20Operating Efficiency Ratio6.0% 21/20Accumulated in 12 tion%Total%4Q214Q21 2021 vs % Totalx 3Q21 x 4Q20 20204Q2146.3%45.4%46.0%4Q203Q214Q21Branches Service Points(PAs PAEs) BUsR million4Q212021Personnel ministrative 04,82317.945.2(16.7)11.14Q203Q21BU4Q21PAs PAEsADM. PERSONNEL EXPENSESOther Operating Income / (Expenses)TOTAL OPERATING o Expresso202110.06%17.78% 10.97%IPCAIGP-MCollective 4
INSURANCE, PENSION PLANS AND CAPITALIZATION BONDSNet IncomeEvolution of Premiums Issued from Insurance,Pension Plan Contributions and Capitalization BondsIncome(R Q20Income from Q214Q214Q212Covid-19 Claims20211,84416,481*70.5% 71.8% % 82.5% 81.6%67.9% 70.2%2020*Without Covid Effect73.6%67.0% 68.4% 69.6%10,00020,423 27,73113,258 20,42313,25820216M1934,22065.9% 66.2% 68.7%27,71719,893 25,87312,656 18,75090.0%80.0%3619M19 12M196M20Claims Advised Covid-19Claims1,14325,596 29,19160.0%50.0%40.0%16,630 160,00018.0%*13,965*2,982*21,222(R Million)54.6%24,214*21,150Retained Claims (Accumulated)(R Million)4,578*10.9%5,3445,1201,276(R Million)11,8442,978 4,34220.0%5,0299M20 12M206M21 9M21 12M21Retained ClaimsClaims (Without Covid-19)(1) For comparison purposes, disregarding the effect of the expense of R 184 million, referring to the 5% encumbrance on the CSLL rate, the profit exceeds 8% compared to the same period last year. (2) Income Operating Income Financial Income.10.0%0.0%25
CAPITAL AND LIQUIDITYRegulatory Capital and RWAVariation%Basel Ratio(%)R .71.1Dec/21REGULATORY CAPITAL150,2366.010.7RISK-WEIGHTED ASSETS953,3262.111.0873,7373.212.1Operational Risk71,5940.011.1Market Risk7,995(48.2)(45.6)13.71.2Credit Risk12.713.112.6Dec-20Mar-21Total Ratio12.7Jun-2112.5Sep-21Common EquityDec/21x Dec/21xSep/21 Dec/20Dec-21Additional Capital (Tier I)aChange in The Tier I Capital Index – Quarter 0 Level ILimits12.720211;27.5 CommonEquitySep-21Net Income4Q21MTM of Securities- Equity ValuationAdjustmentsEffects ofPrudentialAdjustmentsCommon EquityWeighted AssetsInterest onShareholders'EquityDec-21Liquidity CoverageRatio (LCR)117.1%Net Stable FundingRatio (NSFR)Additional Capital1 – Refers to the minimum limits required, according to Resolution No. 4,193/13, added to the additional capital installments established by Circulars No. 3,768/15 and 3,769/15. 2 – Limits valid from Oct/21.26
idance202214.5% to 16.5%18.3%10% to 14%CLIENTS NII2% to 6%6.5%8% to 12%FEE AND COMMISSION INCOME2% to 6%4.1%2% to 6%OPERATING EXPENSES(Personnel Administrative Others)-5% to -1%1.1%3% to 7%INCOME FROM INSURANCE, PENSION PLANS ANDCAPITALIZATION BONDS(It includes operating and financial income)-10% to 0%-5.5%18% to 23%R 13.0 to R 16.0R 15.0R 15.0 to R 19.0EXPANDED LOAN PORTFOLIOEXPANDED ALL – R BILLION27
DISCLAIMERThis presentation may contain forward-looking statements. Such statements are not statements ofhistorical facts and reflect the beliefs and expectations of the Company's management. The words"anticipates", "believes", "estimates", "expects", "forecasts", "plans", "predicts", "projects", "targets"and similar words are intended to identify these statements, which necessarily involve known andunknown risks and uncertainties. Known risks include uncertainties, which are not limited to theimpact of competitive services and pricing, market acceptance of services, service transactions bythe Company and its competitors, regulatory approval, currency fluctuations, changes in service mixoffered, and other risks described in the Company's reports. Forward-looking statements speak onlyas of the date they are made and Banco Bradesco does not assume any obligation to update them inlight of new information and/or future developments.28
EXTENDED LOAN PORTFOLIO92%91%68%13 yearsNo delay history in the12 months prior to thepandemicRatingAA to CWith realcollateralAveragerelationship timeThe R 33.4 billion balance inDec/21 includes the followingcomponents:Extensions Accounting Balance*(Net of Amortizations)(R .927.86.35.620.0-20.0%13.213.310.510.38.90.0In arrears – R 3.1 billion-30.0%-40.0%10.0On time – R 28.5 bilionIn grace period – R 1.9 billion-50.0%Jun-20Sep-20WholesaleDec-20Mar-21Mass Market ProductJun-21Sep-21Dec-21In Arrears (over 30 days)* Delinquency ratio above 30 days calculated considering the balance of the expanded loan portfolio.29
LOAN PORTFOLIO CONCENTRATIONDiversified loan portfolio and with lowconcentration in areas of greater riskExposure byCurrency93%BrazilianRealConcentration among the largest debtors1.4%8.1%11.1 bi13.2%65.5 bi107.3 biWarranty Coverage(Bacen Portfolio)56%WithGuaranteePortfolio diversification by segment39.8%Large corporates20.7%SMEs-Sized EnterprisesLargest borrower10 largest borrowers20 largest borrowersPayroll-deductible LoansReal Estate Financing22.6%Credit Card29.5%183.6 bi50 largest borrowersrisk (R billion)239.9 bi100 largest borrowersrisk / portfolio (%)10.4%9.5%6.8%Personal Loans4.2%CDC/Vehicles FinancingOthers4.0%4.6%30
Viva Bem, provides 24/7 service for employees and their families Introduction of Meu Doutor Novamed Clinic and Bradesco Dental in Cidade de Deus INCLUSION PROGRAMS: . Insurance Financial. 17 R million 4Q21 3Q21 4Q20 2021 2020 RECURRING NET INCOME 6,613 6,767 6,801 26,215 19,458
