bradesco · bradesco’s adjusted net income for the first nine months of 2014 was r$11.227...

Bradesco’s Adjusted Net Income for the first nine months of 2014 was R$11.227 billion, giving a return of 20.4% on adjusted average shareholders’ equity for the period. This result showed a significant 24.7% growth over the same period of last year. Insurance, one of the pillars of Bradesco’s business, produced net income of R$3.170 billion, 15.7% more than in the first nine months of 2013, and accounting for 28% of the total adjusted net income of the Bradesco Organization, reinforcing the optimistic outlook for the segment.In spite of volatility in the economy, Bradesco’s Expanded Credit Portfolio came to R$444 billion in September 2014, which was 2.1% higher in the quarter and 7.7% above the figure for September 2013.Revenues from services increased 5.8% quarter on quarter and 11.6% year on year. It should be noted that continuing investment in technology and organic growth has led to an increase in the volume of transactions, thus contributing to the increase in revenues.

Control of Operating Expenses and Operating Efficiency Ratio

Operating expenses increased by 2.4% over 2Q14 and 3.6% over 9M13. These variations are in line with Bradesco’s objectives to maintain growth below the inflation rate (IPCA), which was 6.75% in the last 12 months. We would also draw attention to the operating efficiency ratio, which stood at 39.9%, the lowest level ever reported.

Bradesco Fact Sheet3Q14

Earnings per Share and Adjusted Net Income

Delinquency Ratio

Financial Earnings

4T12 1T13 2T 3T 4T 1T14 2T 3T 9M13 9M14

2,918 2,943 3,199

2.772.742.912.84

R$ Million

3,0822,978

2.79

3,473

3.03

3,804

3.23

Insurance

3,950

9,003

11,227

3.44 3.442.84

33%

67%

32%

68%

31%

69%

28%

72%

31%

69%

30%

70%

28%

72%

27%

73%

30%

70%

28%

72%

5.05.2

5.56.2 6.0

4.6 4.6

Mar13 JunDec12 Sep

Delinquency over 90 days %

Individuals Large Corporates SMEs Total

4.7

Dec

4.8

Mar14 Jun Sep

4.8

4.4 4.44.1 4.2

4.4

4.6

4.1 4.0

3.7 3.6 3.5 3.4 3.5 3.6

0.3 0.3 0.2 0.30.6 0.4

0.7 0.8

Statement of accounts

The third quarter was characterized by the resumption of

international financial volatility. Concerns about epidemics

and geopolitical issues were added to the resurgence of

uncertainties regarding the pace of recovery of the world’s

economy. However, this adverse scenario has not been

enough to interrupt the recovery of U.S. growth, a process

that has already led to the appreciation of the U.S. dollar

and should result in the beginning of the normalization of

the Federal Reserve’s monetary policy in 2015. This scenario,

the Chinese slowdown and the downward bias in commodity

prices increased the challenges faced by emerging

economies. In the domestic scope, economic activity

continues presenting modest growth indicators, increasing

the importance of structural initiatives that reinforce the

signs of the commitment to sustainable economic policies

that lead to the recovery of economic agents’ confidence.

5th Bradesco Open Day

Bradesco opened the doors

of its headquarters, in Cidade

de Deus, Osasco, for the fifth

edition of “Bradesco Open

Day”. The event was attended

by approximately 70 domestic

and international analysts, with

eight presentations conducted

by professionals of the

Organization’s main business

areas. In addition to valuing its

commitment to transparency,

“Bradesco Open Day” was a

special chance for the Bank

to share its results and

strategies, and establish a

closer relationship with all

of those who take part in

the daily activities of the

capital market. The event

was recorded and will be

available on the website

www.bradesco.com.br/ri.

Bradesco stood out in the EFMA

Accenture Distribution & Marketing

Innovation Awards, in the Physical

Distribution category (branches),

with the Voyager V – Floating Branch

project.

Bradesco’s pioneering project has

been transforming the local economy

and the daily lives of the population of

the benefited regions since 2009, when

the first floating branch, Voyager III,

was inaugurated.

In 2014, Voyager V started operations

and today the vessels cover 1,600km

along the Solimões river, between

the municipalities of Manaus and

Tabatinga, serving 11 cities and more

than 50 riverside communities.

Floating branches are part of

Bradesco’s business strategy, which

seeks to expand its

operations through

drivers such as

financial inclusion and

focus on innovation

and technology.

Through the vessels,

Bradesco offered

access to the financial

system to people who

had never had it before,

allowing them to carry

out several banking transactions,

improving their quality of life and

avoiding trips to distant cities.

Bradesco stands out in international award with Floating Branch

Macroeconomic Scenario

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R$ Million

(1) Accumulated 12 months.

Bradesco is one of Brazil’s largest private banks and the biggest insurance company in Latin America, with a market capitalization of R$146.504 million* as of September 30, 2014.Founded 71 years ago, it is recognized internationally for its financial soundness and the quality of the services it provides, as well as for its ethical conduct and respect for people and the environment. Bradesco became a public company in 1946, and its shares are now listed on the stock exchanges of São Paulo, New York and Madrid. The Organization’s first priority is to create value for all its stakeholders by seeking new business opportunities and by constant investment in technology and administrative improvements.

Company Profile

The Bradesco Organization’s growth strategy is based on certain fundamental principles:• To have a presence in every municipality in Brazil;• To operate on the Bank + Insurance model;• To serve every class of society;• To increase profitability and shareholder value by means of

improvements in the Efficiency Ratio;• To maintain and renew its commitment to technological innovation;• To do business with acceptable levels of risk;• To expand the business by means of organic growth;• To enter into strategic alliances and make selective acquisitions;• To reinforce its position in the Capital Markets.

Strategy

BBD PART. S.A.(Management,

Employees)

AguiarFamily

Cidade de Deus

Nova Cidade de Deus

FundaçãoBradesco(1)

Bank of Tokyo Mitsubishi - UFJ

(MUFG)NCFMarket

Banco Bradesco

53.70% COMMON26.07% TOTAL

46.30% COMMON100.00% PREFERRED73.93% TOTAL




48.67% COMMON0.08% PN24.41% TOTAL








COMMON SharesPREFERRED Shares

Total

Qtde. de Ações* %

2,103,637,1292,103,636,9104,195,390,559

50.0050.00

100.00

Fees

Securities

Funding

Loans

29%

8%

9%

27%

28%

8%

9%

27%

29%

8%

8%

27%

28%

7%

7%

28%

Banking

Insurance

73% 72% 72% 70%

27% 28% 28% 30%

3Q14 2Q14 9M14 9M14

(1) The Presiding Board of Fundação Bradesco, maximum deliberative body of this Entity, comprises Bradesco’s Management (Board of Executive Officers and Board of Directors). Reference Date: September 30, 2014.

*Number of shares (less shares held in treasury) x closing price for common and preferred shares on the last day of the month.

More than

R$27 billion in

dividends over

the period

* As of Sep14. Includes 2,898,610 common and 8,984,870 preferred shares in treasury.

Dividends

2,6922,823

3,3692,718

34.4%

31.5% 31.5%33.1% 31.5%

37.2% 35.7% 35.4%

Net Pay Out(1) Gross Pay Out(1)

35.7%

31.5%

3,7403,760

31.5%

34.9%35.7% 36.0%

31.5%31.5%

2007 2008 2009 2010 2011 2012 2013 Sep14

4,0783,895

Fact Sheet 3Q14

SEP/14

Branches

PAs + PAEs(1)

Bradesco Expresso

Branches/Subsidiaries Abroad

Outside ATM Terminals

Others(2)

TOTAL DISTRIBUTION NETWORK

ATM Terminals

74.8 million Clients

98,849 Employees

357.6 thousand Shareholders

4,958 Suppliers (As of Dec13)

4,659

4,656

49,020

14

1,398

14,281

74,028

48,053

(1) In millions; (2) Number of customers (Corporate/ Individual Taxpayer ID (CNPJ/CPF);(3) Refers to 1st and 2nd holders of checking accounts; and(4) Number of accounts.

(1) Includes 3,497 PAs (Service Branch, a result from the consolidation of PAB, PAA and Exchange Points, according to CMN Resolution 4,072 of April 26, 2012); and 2.068 PAEs (ATM located on the premises of a company); and

(2) Includes 12,213 ATMs Shared with other Banks and 1.949 Bradesco Promotora de Vendas service points.

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( 1)

Bradesco Expresso

Branches

74.8 million Clients

Active Checking Account Holders(2) (3)

Savings Account Holders(4)

Insurance GroupInsurance

Pension PlansSavings Bonds

Bradesco Financiamentos

Sep/14

26.6

52.9

46.340.52.43.4

3.1

(1) Em Milhões.(2) Quantidade de Clientes Únicos (CNPJs e CPFs);(3) Referem-se ao 1º e 2º titulares de c/c; e(4) Quantidade de Contas.

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R$ 35,260 million +8.8% R$ 38,346 million

9M13

Savings Bonds

9.5%

Health

27.4%

Auto and P&C

10.0%

Others

1.5%Others

0.5%

Life and Pension Plans

51.6%

9M14Savings Bonds

10.2%

Life and Pension Plans

46.8%

Health

30.5%

Auto/RE

12.0%

CLIENT’S VIEWAble to respond properlyto the needs

45% assertiveness in offerings via CRM(Sales Force Automation)

TIME TO MARKETAgility in developing productsand services

50% agility in conception and developmentof new products

OPERATIONAL EFFICIENCYBusiness processes andback-office activities

25% reduction of operational activities

SAVINGSDevelopment andMaintenance

10% reduction in development costs withthe reuse of components

Impact on Efficiency Ratio: 39% (2014)

Total Investments in the period (2006 through Sep14): R$ 31.0 billion*

* Source: Financial Statements.

Infrastructure

2007 2008 2009 2010

2,099

2,670

3,4573,920

4,328

478

1,621

3,471

557

2,914

2006

1,826

354

1,472

667

2,003

630

2,827

716

3,204

1,087

3,241

718

2011 2012

TI/Telecommunications

4,408

3,690

4,842

2013

4,341

501

Sep/2014

R$ Million

8 to 12%Individuais

9 to 12%NII - Interest-Earning Portion

11 to 14%Fee and Comission Income

3 a 6%Operating Expenses(2)

9 a 12%Insurance Premiums

Loan Portfolio(1) (2) 7 to 11%

Companies 6 to 10%

(1) Expanded Loan Portfolio; and(2) Administrative and Personnel Expenses.

20

14

GU

IDA

NC

E

For the ninth consecutive year, Bradesco was selected to join the Dow Jones Sustainability Index (DJSI) from the New York Stock Exchange, in the portfolios Dow Jones Sustainability World Index and Dow Jones Sustainability Emerging Markets. DJSI is comprised of shares from a select list of companies that present the best corporate sustainable development practices, assessed by their performance in attributes such as: corporate governance, risk management, climate change management, human capital development and management of suppliers.

Bradesco joins DJSI 2014/2015

Note: (1) Pension Plans’ Contributions and Savings Bonds Income

Luiz Carlos AngelottiExecutive Managing Offi cer and IROPhone: +55 (11) [email protected]

Investor Relations DepartmentPhone: +55 (11) 2178-6201

Paulo Faustino da CostaDepartment DirectorPhone: +55 (11) [email protected]

Contacts RI

bradesco · bradesco’s adjusted net income for the first nine months of 2014 was r$11.227...

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