Bradesco Announces the first half of 2013 Results

SAO PAULO, July 22, 2013 /PRNewswire/ -- The main figures of Bradesco (BM&FBovespa: BBDC3; BBDC4), (NYSE: BBD) in the first half of 2013 are presented below:

1. Adjusted Net Income(1) for the first half of 2013 stood at R$5.921 billion (a 3.7% increase compared to the R$5.712 billion recorded in the same period of the previous year), corresponding to earnings per share of R$2.79 in the last 12 months, and Return on Average Adjusted Shareholders' Equity(2) of 18.8%.

2. Adjusted Net Income is composed of R$4.060 billion from financial activities, representing 68.6% of the total, and R$1.861 billion from insurance, pension plan and capitalization bond operations, which accounted for 31.4%.

3. On June 30, 2013, Bradesco's market capitalization stood at R$124.716 billion(3), up 18.9% over the same period in 2012. As of May 2013, Bradesco common shares compose the Ibovespa index.

4. Total Assets stood at R$896.697 billion in June 2013, an 8.0% increase over the same period in 2012. Return on Total Average Assets was 1.3%.

5. The Expanded Loan Portfolio(4) stood at R$402.517 billion in June 2013, up 10.3% during the same period in 2012. Operations with individuals totaled R$123.562 billion (up 10.1% from June 2012), while operations with companies totaled R$278.955 billion (up 10.4% from June 2012).

6. Assets under Management stood at R$1.234 trillion, a 9.1% increase from June 2012.

7. Shareholders' Equity stood at R$66.028 billion in June 2013, up 3.3% from June 2012. Capital Adequacy Ratio stood at 15.4% in June 2013, 11.6% 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$2.066 billion for the first half of 2013, R$1.305 billion of which was paid as monthly and interim interest and R$761 million was recorded in provision.

9. Interest Financial Margin stood at R$21.078 billion, up 1.6% in comparison with the first half of 2012.

10. The Delinquency Ratio over 90 days dropped 0.5 p.p. in the last 12 months and stood at 3.7% on June 30, 2013 (4.2% on June 30, 2012).

11. The Efficiency Ratio(5) improved by 0.6 p.p. (from 42.4% in June 2012 to 41.8% in June 2013), and the "adjusted-to-risk" efficiency ratio stood at 52.6% (53.1% in June 2012).

12. Insurance Written Premiums, Pension Plan Contributions and Capitalization Bond Income totaled R$24.191 billion in the first half of 2013, up 15.3% over 2012. Technical Reserves stood at R$131.819 billion, up 17.9% from June 2012.

13. Investments in infrastructure, information technology and telecommunications amounted to R$2.296 billion in the first half of 2013, up 15.6% over the same period in 2012.

14. Taxes and contributions, including social security, paid or recorded in provision, amounted to R$12.991 billion in the first half, of which R$4.894 billion referred to taxes withheld and collected from third parties and R$8.097 billion from Bradesco Organization activities, equivalent to 136.8% of Adjusted Net Income (1).

15. Bradesco has an extensive customer service network in Brazil, with 4,692 Branches and 3,795 Service Branches - PAs. Customers can also use 1,454 PAEs – ATMs (Automatic Teller Machines) in companies, 44,819 Bradesco Expresso service points, 34,322 Bradesco Dia & Noite ATMs and 13,650 ATMs.

16. Payroll, plus charges and benefits, totaled R$5.316 billion. Social benefits provided to the 101,951 employees of the Bradesco Organization and their dependents amounted to R$1.311 billion, while investments in training and development programs totaled R$39.062 million.

17. Major Awards and Acknowledgments in the period:

- Bradesco stands out as the best ranked Brazilian private financial institution, according to the American magazine Fortune, which publishes a list of the world's 500 largest companies;

- It was recognized the Best Bank in Brazil, in the 2013 Euromoney Awards for Excellence, conducted by the British magazine Euromoney;

- Bradesco is the most valuable brand in Latin America, according to Millward Brown consulting firm;

- Bradesco was granted the 2012 Publicly-Held Company award, promoted by Apimec. It recognizes companies that have invested in long-term relationship and open dialog with investors;

- It stood out in the Melhores e Maiores yearbook in the 2013 edition: ranked first among the 200 Largest Groups in terms of Net Revenue in 2012 and the 10 Largest Banks in terms of Net Income in 2012, in addition to ranking first among financial institutions in terms of loans to medium-sized companies and credit card issues. In the Insurance segment, Grupo Bradesco Seguros e Previdência was ranked in three positions among the ten largest insurance companies in the country with Bradesco Saúde, to which was granted the first place, Bradesco Vida e Previdência and Bradesco Auto/RE, according to the Exame magazine);

- It is among the 100 largest world companies in market capitalization, according to the consulting firm PricewaterhouseCoopers;

- One of the best companies to start the career, according to Guia Voce S/A, in partnership with the Administration Institute Foundation – FIA and Cia. de Talentos); and

- BRAM – Bradesco Asset Management was considered one of the best fund managers of Brazil and also the best equities manager in the country, according to ValorInveste magazine / Valor Economico newspaper.

18. 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 56-year history of extensive social and educational work, with 40 schools in Brazil. In 2013, an estimated budget of R$460.961 million will benefit 106,843 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. The nearly 47 thousand students in Basic Education are guaranteed free, quality education, uniforms, school supplies, meals and medical and dental assistance. Fundacao Bradesco will also assist another 350,000 students through its distance learning programs, found at its e-learning portal "Virtual School." These students will complete at least one of the many courses offered by the Virtual School. Furthermore, another 68,323 people will benefit from projects and actions in partnerships with CIDs - Digital Inclusion Centers, the Educa+Acao Program and Technology courses (Educar e Aprender – Educate and Learn).

(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:
Mrs. Ivani Benazzi de Andrade
Phone: +011-55-11-2178-6218
e-mail: 4823.ivani@bradesco.com.br

or Mr. Carlos Tsuyoshi Yamashita
Phone: +011-55-11-2178-6204
e-mail: 4823.carlos@bradesco.com.br