BANCO BRADESCO S.A. 1st QUARTER
RESULTS 2021
Macro Context
Economic conditions should consolidate in 2021.
The worsening of the pandemic negatively impacted the GDP between March and April of this year. Before that, the data showed a strong economic upturn, indicating what we should expect when the restrictions ease.
Vaccination is gaining traction and should contribute to the process of reopening in the coming months, with positive impact on employment, businesses and services, facilitated by the renewal of some support measures.
The global context is broadly favorable towards the industry, foreign trade and the commodities markets.
The Central Bank of Brazil should continue monetary policy normalization to bring the inflation - pressured by price shocks of food, energy, and the depreciation of the real - back to the target in 2022.
Resumption of Formal Employment Suggests that the Recovery is Consolidating
400 000 | 12% | ||||||||
, | |||||||||
300,000 | 9% | ||||||||
200,000 | 6% | ||||||||
100,000 | 3% | ||||||||
0 | |||||||||
0% | |||||||||
-100,000 | |||||||||
-3% | |||||||||
-200,000 | |||||||||
-6% | |||||||||
-300,000 | |||||||||
-400,000 | -9% | ||||||||
-500 000 | -12% | ||||||||
, | |||||||||
02 | 04 | 06 | 08 | 10 | 12 | 14 | 16 | 18 | 20 |
Caged (3m - left-hand axis) | GDP (right-hand axis) |
Monetary Policy Normalization is expected to continue in 2021
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
jan-20 | jul-20 | jan-21 | jul-21 | ||||
IPCA | IPCA (proj) | Selic | Selic (Proj) | ||||
2
Corporate Strategy
sustainability
made to last
- Capital strentgth and liquity
- Integrated view of risks
- Diversity
•Environmental ethics and responsibility
- Corporate Governance
people
our team
- Entrepreneurial attitude
- high-performance
- Transformational skills
- Ethic, transparency and respect
- Innovative, challenging and plural environment
"Create opportunities for people's fulfillment and the sustainable development of
companies and society
"
client
our inspiration
- Client-centricity
- Contextualized offers
- Excellence jorneys
- Digital service evolution
- Customer empowerment
Digital
transformation
how we do it
• Efficiency
• Agility
• Security
• Improvement
• Innovation
3
Financial Highlights 1Q21
-4.2%q/q 73.6% y/y | -1.3 p.p. q/q 7.0 p.p. y/y | -1.0 p.p. q/q -3.8 p.p. y/y |
Recurring Net Income | ROE | Operating Efficiency |
Ratio (ER) | ||
(accumulated 12 months) |
2.6% q/q 7.6% y/y | -0.2 p.p. q/q 2.2 p.p. y/y | -2.4%q/q -4.7%y/y |
Expanded Loan | Tier I Capital | Operating |
Portfolio | Expenses |
4
Operational Evolution
7.4% y/y | -4.7% y/y | 41.8% y/y | ||
Net Interest | Operating | Expanded ALL | ||
Income | Expenses | |||
Variation % | |||
1Q21 | 1Q21 | ||
R$ million | 1Q21 | ||
x 4Q20 | x 1Q20 | ||
Net Interest Income | 15,578 | (6.5) | 7.4 |
Expanded ALL | (3,907) | (14.5) | (41.8) |
Gross Income from Financial Intermediation | 11,671 | (3.5) | 49.8 |
Income from Insurance, Pension Plans and Capitalization Bonds | 3,137 | 37.5 | 7.0 |
Fee and Commission Income | 8,067 | (7.5) | (2.6) |
Operating Expenses | (11,204) | (2.4) | (4.7) |
Tax Expenses+ Earnings (losses) in unconsolidated subsidiaries | (1,903) | (1.5) | 2.8 |
Operating Income | 9,768 | 1.0 | 81.0 |
Non-Operating Income + Income Tax + Non-controlling interests | (3,253) | 13.3 | 97.9 |
in subsidiaries + Others | |||
Recurring Net Income | 6,515 | (4.2) | 73.6 |
7.0 p.p
ROE growth y/y
Quarterly ROE (%)
20.0 18.7
11.7
1Q20 | 4Q20 | 1Q21 |
5
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Banco Bradesco SA published this content on 05 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 May 2021 13:26:01 UTC.
