Bradesco's Results - First Half of 2012

SAO PAULO, July 23, 2012 /PRNewswire/ -- The main figures obtained by Bradesco (BM&FBovespa: BBDC3; BBDC4), (NYSE: BBD) in the first half of 2012 are presented below:

1. Adjusted Net Income(1) in the first half of 2012 stood at R$5.712 billion (a 2.7% increase compared to the R$5.563 billion recorded in the same period last year), corresponding to earnings per share of R$2.97 in the last 12 months and Return on Average Shareholders' Equity(2) of 20.6%.

2. Adjusted Net Income is composed of R$3.926 billion from financial activities, representing 68.7% of the total, and R$1.786 billion from insurance, pension plan and capitalization bond operations, which accounted for 31.3%.

3. On June 30, 2012, Bradesco's market capitalization stood at R$104.869 billion(3).

4. Total Assets stood at R$830.520 billion in June 2012, a 20.5% increase over the same period in 2011. Return on Total Average Assets was 1.4%.

5. The Expanded Loan Portfolio(4) stood at R$364.963 billion in June 2012, up 14.1% on the same period in 2011. Operations with individuals totaled R$112.235 billion (up 9.1%), while operations with companies totaled R$252.728 billion (up 16.5%).

6. Assets under Management stood at R$1.131 trillion, up 21.0% on June 2011.

7. Shareholders' Equity stood at R$63.920 billion in June 2012, up 21.0% on June 2011. Capital Adequacy Ratio stood at 17.0% in June 2012, 11.8% of which fell under Tier I Capital.

8. Interest on Shareholders' Equity and Dividends were paid and recorded in provision to shareholders for income in the first half of 2012 in the amount of R$1,916 million, of which R$1,122 million was paid as monthly and interim dividends and R$794 million was recorded in provision.

9. Financial Margin stood at R$21.729 billion, up 15.4% in comparison with the first half of 2011.

10. The Delinquency Ratio over 90 days stood at 4.2% on June 30, 2012 (3.7% on June 30, 2011).

11. The Efficiency Ratio(5) improved by 0.3 p.p. (from 42.7% in June 2011 to 42.4% in June 2012) and the "adjusted-to-risk" ratio stood at 53.1% (52.2% in June 2011).

12. Insurance Written Premiums, Pension Plan Contributions and Capitalization Bond Income totaled R$20.988 billion the first half of 2012, up 20.1% over the same period in 2011. Technical Reserves stood at R$111.789 billion, up 19.0% on June 2011.

13. Investments in infrastructure, information technology and telecommunications amounted to R$1.986 billion in the first half of 2012, a 14.1% increase on the previous year.

14. Taxes and contributions, including social security, paid or recorded in provision, amounted to R$11.483 billion, of which R$4.945 billion referred to taxes withheld and collected from third parties and R$6.538 billion from Bradesco Organization activities, equivalent to 114.5% of Adjusted Net Income (1).

15. Bradesco has an extensive customer service network in Brazil, comprising 7,893 service points (4,650 branches and 3,243 Service Branches - PAs). Customers can also use 1,476 PAEs – ATMs (Automatic Teller Machines) in companies, 40,476 Bradesco Expresso service points, 35,226 Bradesco Dia & Noite ATMs and 12,258 Banco24Horas ATMs.

16. Payroll, plus charges and benefits, totaled R$5.002 billion. Social benefits provided to the 104,531 employees of the Bradesco Organization and their dependents amounted to R$1.202 billion, while investments in training and development programs totaled R$62.599 million.

17. Major Awards and Recognitions in the period:

• Bradesco was recognized as the "Best Brazilian Bank" and "Latin America's Best Bank" in the 2012 edition of the Euromoney Awards for Excellence, which is annually granted by British magazine Euromoney, renowned as one of the world's most important in the financial institution segment; Bradesco is one of the world's most solid banks. It ranked 13th among 20 global institutions, and is the only truly Brazilian bank in the ranking (Bloomberg News);
• Bradesco is the private company with the most valuable brand in Brazil. In general ranking (including government companies), it placed second among 480 brands in 32 categories, and placed first among Latin American companies (BrandAnalytics / Millward Brown – IstoE magazine);
• Bradesco Organization stood out in the Best and Largest 2012 edition: it ranked first among the "200 Largest Groups" and "50 Largest Banks that Operate in Brazil," and it is also the private financial institution with highest number of demand deposits and rural loans, checking account holders and active credit cards. In the insurance segment, Grupo Bradesco Seguros e Previdencia occupied three the top six positions in the insurance segment ranking in Brazil through Bradesco Saude (first), Bradesco Vida e Previdencia and Bradesco Auto/RE (Exame magazine);
• The Organization was granted the "Best Company to Launch a Career Award," in the "Young Talent Retention" category (Voce S/A magazine in partnership with FIA – Fundacao Instituto de Administracao);
• Bradesco won the "2012 Consumidor Moderno" Award for Excellence in Customer Service, in the "Premium Bank" and "Credit Card" categories (Consumidor Moderno magazine – Grupo Padrao); and
• The Investor Relations area was awarded the "Best Investor Relations of the Financial Sector," according to IR Magazine Awards Brazil 2012.

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 offering 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. In this area, we point out Fundacao Bradesco, which has a 55-year history of extensive social and educational work, with 40 schools in Brazil. In 2012, a projected budget of R$385.473 million will benefit 111,170 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 50 thousand students in Basic Education are guaranteed free, quality education, uniforms, school supplies, meals and medical and dental assistance. Fundacao Bradesco also aided another 300,150 students through its distance learning programs, found at its e-learning portal "Virtual School." These students completed at least one of the many courses offered by the Virtual School. Furthermore, another 83,323 people will benefit from projects and actions in partnerships with Digital Inclusion Centers (CIDs), the Educa+Acao Program and Technology courses (Educar e Aprender – Teach and Learn).

The Financial Statements can be found on Bradesco's Investor Relations website at www.bradesco.com.br/ir.

(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) R$114.304 billion considering the closing price of preferred shares (most traded share); (4) Includes sureties and guarantees, letters of credit, advances of credit card receivables, co-obligation in loan assignment (receivables-backed investment funds and mortgage-backed receivables), co-obligation in rural loan assignment, 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: +55-11-2178-6218
e-mail: 4823.ivani@bradesco.com.br

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