Banco Bradesco S.A. 2010 Earnings Results

SAO PAULO, January 31, 2011 /PRNewswire/ --

2010 Highlights

The main figures obtained by Bradesco (NYSE:BBD) in 2010 are presented below:

1. Book Net Income(1) in the year was R$10.022 billion (an increase of 25.1% compared to the R$8.012 billion in the same period of 2009), corresponding to earnings per share of R$2.66, and Return on Average Shareholders' Equity(2) of 22.7%.

2. Book Net Income was composed of R$7.104 billion from financial activities, which represented 70.9% of the total, and R$2.918 billion from insurance, private pension and savings bond operations, which accounted for 29.1% of the total.

3. On December 31, 2010, Bradesco's market capitalization stood at R$109.759 billion(3), while the value of preferred shares rose by 12.1%(4) in 2010, against the 1.0% appreciation in the Ibovespa index.

4. Total Assets stood at R$637.485 billion in December 2010, an increase of 25.9% from the balance in the same period in 2009. Return on Average Assets was 1.7%.

5. The Expanded Loan Portfolio(5) stood at R$293.555 billion in December 2010, up 23.0% from the same period in 2009. Operations with individuals totaled R$98.122 billion (up 19.5%), while operations with companies totaled R$195.433 billion (up 24.9%).

6. Total Assets under Management stood at R$872.514 billion, an increase of 24.3% from December 2009.

7. Shareholders' Equity was R$48.043 billion in December 2010, increasing by 15.1% from the balance in the same period a year earlier. The Capital Adequacy Ratio (Basel II) stood at 14.7% in December 2010, 13.1% of which under Tier I Capital.

8. In 2010, Interest on Shareholders' Equity and Dividends were paid and provisioned to shareholders, of which R$3.369 billion were related to income generated in 2010, of which R$1.095 billion as interim and monthly dividends paid and R$2.274 billion provisioned.

9. The Financial Margin reached R$33,056 million, up 11.1% on 2009.

10. The delinquency ratio over 90 days stood at 3.6%, down for the fifth consecutive quarter.

11. The Efficiency Ratio(6) stood at 42.7% in December 2010 (40.5% in December 2009) and the "adjusted-to-risk" ratio stood at 52.4% in December 2010 (55.9% in December 2009).

12. Insurance Written Premium, Pension Plan Contributions and Savings Bonds Income totaled R$31.078 billion(7) in 2010, up by 18.0% over 2009. Technical provisions stood at R$87.177 billion, equal to 30.6% of the Brazilian insurance market (base date: November/10).

13. Investments in infrastructure, information technology and telecommunication amounted to R$3.920 billion in 2010, growth of 13.4% compared to the previous year.

14. Taxes and contributions, including social security, paid or provisioned, amounted to R$15.782 billion, of which R$6.793 billion corresponded to taxes withheld and collected from third parties and R$8.989 billion corresponded to taxes levied on the activities of Bradesco Organization, equal to 89.7% of Book Net Income.

15. Banco Bradesco has an extensive distribution network in Brazil, with 6,551 Service Points (3,628 Branches, 1,263 PABs and 1,660 PAAs). Customers can also use 1,557 PAEs, 26,104 Bradesco Expresso service points, 6,203 Banco Postal (Postal Bank) branches, 32,015 own ATMs in the Bradesco Dia&Noite network and 11,057 ATMs shared with other banks(8).

16. The employees' payroll plus charges and benefits totaled R$7.844 billion. Social benefits provided to the 95,248 employees of Bradesco Organization and their dependents amounted to R$1.856 billion, while investments in training and development programs totaled R$107.105 million.

17. As resolved at the December 17, 2010 Extraordinary Shareholders' Meeting, Bradesco is increasing its capital stock by R$1.5 billion, from R$28.5 billion to R$30.0 billion.

18. In November 2010, Bradesco became the first national sponsor of the Rio 2016 Olympic Games, as the exclusive financial service ad insurance provider.

19. Main Awards and Recognitions in the fourth quarter of 2010:

    
    -- Elected the Bank of the Year 2010 in the Relatorio Bancario (Bank 
       Report) Award, which recognized the Institution's contribution to 
       develop society through its products and services, supported by an
       innovative and cutting-edge technological platform (Relatorio Bancario
       Magazine);
    -- Best Bank in Personnel Management, placing second among companies
       with more than 10,000 employees, in 2010 (Valor Carreira magazine / 
       Valor Economico newspaper);
    -- Bradesco was considered the most valuable brand in the financial
       segment (Superbrands);
    -- For the third consecutive year, it received the Premio Intangiveis 
       Brasil 2010 (2010 Brazil Intangible Award), in the category
       "Information Technology and Internet" (Consumidor Moderno magazine);
    -- It was one of the 20 model companies in corporate social
       responsibility in Brazil according to Guia Exame de Sustentabilidade 
       2010 (2010 Exame Sustainability Guide)/Exame Magazine;
    -- It is one of the 42 companies to comprise the "Carbon Efficient Index" 
       (ICO2) of the BM&FBovespa;
    -- For the sixth straight year, Bradesco shares were included in the
       "Corporate Sustainability Index (ISE)," of the BM&FBovespa;
    -- In 2010, Bradesco Corretora topped the main rankings of the Brazilian 
       market's most profitable stock portfolios (Valor 
       Economico/InfoMoney/Exame); and
    -- Bradesco Asset Management (BRAM) was the best institutional fund
       manager in a ranking prepared by Investidor Institucional magazine.

20. 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 has been developing a broad social and educational program that operates 40 schools throughout Brazil, operating in several educational fields. In 2010, it served 646 thousand people, 115 thousand of which through its own schools, in Basic Education, from Kindergarten to High School and Technical Professional Education in 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, 531 thousand students were served. Basic Education students receive uniforms, school supplies, meals and medical and dental assistance free of charge. In its 54 years of service, Fundacao Bradesco has provided formal, free, quality education to over 2 million students, which, combined with the other on-site and distance courses offered, rises to more than 4 million.

(1) According to what has been disclosed in chapter 6 of this Report on Economic and Financial Analysis; (2) Excludes mark-to-market effects of available-for-sale securities registered under Shareholders' Equity; (3) R$122.831 billion considering the closing quote for preferred shares (most liquid share) on last day in the year; (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 operations with Credit Risk - Commercial Portfolio (expanded criteria), which includes debentures and promissory notes; (6) Accumulated over 12 months; (7) Not considering the effect of RN 206/09 (ANS), in the total amount of R$406 million (Health); and (8) Banco24Horas ATMs + ATM terminals shared among Bradesco, Banco do Brasil and Banco Santander.

    
    Contact:
    Banco Bradesco
    Paulo Faustino da Costa
    +55-11-2178-6201
    4823.paulo@bradesco.com.br

    Ivani Benazzi de Andrade
    +55-11-2178-6218
    4823.ivani@bradesco.com.br