Banco Bradesco S A : Bradesco 2Q21 - Earnings Presentation

2nd QUARTER RESULTS 2021

Macro Context

GDP will have an important advance in 2021

Economic growth has accelerated with the advancement of the immunization, low indebtedness of companies and good global environment.

The formal labor market has had a strong expansion, favoring the credit and maintenance of the delinquency at reduced levels.

Inflation has accelerated, in the context of greater demand and shocks of food and energy prices.

Fiscal risks have decreased with the growth of the GDP, contributing towards the appreciation of the exchange. Along with the elevation of the Selic, we expect lower inflationary pressures ahead.

The global context continues favorable for the prices of commodities, contributing significantly to several sectors in Brazil.

Formal Employment with Disseminated Recovery

(Index Feb/20 =100)

108	Brazil	North	106.8
106	Northeast	Southeast	105.1
	104.7
104	South	Midwest
104.3
102			103.7
		102.6
100

98

96

94

92

90

Feb-20Apr-20Jun-20Aug-20Oct-20Dec-20Feb-21Apr-21

Projections for Public Debt have Improved

Gross Debt / GDP

		95.7*	96.7*
* Greater projection observed in
88.8
the Fiscal Prism (Oct/20)
		82.1		83.1
73.7	75.3	74.3
69.8
65.5

2015

2016

2017

2018

2019

2020

2021

2022

2

Financial Highlights 2Q21

-3.0%q/q 63.2% y/y	-0.5 p.p. q/q 6.4 p.p. y/y	0.4 p.p. q/q -2.1 p.p. y/y
Recurring	ROAE	Operating Efficiency
Net Income	Accumulated	Ratio (ER)
		(accumulated 12 months)

3.0% q/q 9.9% y/y	0.5 p.p. q/q 1.6 p.p. y/y	Interest on
Expanded Loan	Tier I Capital	Shareholders' Equity
Payout in 1H21 of 52%
Portfolio

3

Operational Evolution

3.6% 1H21/1H20		-4.4%1H21/1H20		-52.6%1H21/1H20
Fee and		Operating
commission			Expanded ALL
	Expenses
Income

				Variation %
			2Q21	2Q21	1H21
R$ million	2Q21	1H21
x 1Q21	x 2Q20	x 1H20
Net Interest Income	15,738	31,316	1.0	(5.7)	0.4
Expanded ALL	(3,487)	(7,394)	(10.7)	(60.8)	(52.6)
Gross Income from Financial Intermediation	12,251	23,922	5.0	57.2	53.5
Income from Insurance, Pension Plans and	1,574	4,711	(49.8)	(58.3)	(29.8)
Capitalization Bonds
Fee and Commission Income	8,412	16,479	4.3	10.3	3.6
Operating Expenses	(10,990)	(22,194)	(1.9)	(4.1)	(4.4)
Tax Expenses+ Earnings (losses) in unconsolidated	(1,728)	(3,631)	(9.2)	(15.1)	(6.6)
subsidiaries
Operating Income	9,519	19,287	(2.5)	66.9	73.7
Non-Operating Income + Income Tax + Non-	(3,200)	(6,453)	(1.6)	74.8	85.7
controlling interests in subsidiaries + Others
Recurring Net Income	6,319	12,834	(3.0)	63.2	68.3

Income Origin

(Financial and Insurance Areas)

6,462				6,515	6,319
28%				25%	10%
		3,873
				35%				90%
72%				75%
				65%
	2Q19	2Q20		1Q21	2Q21
			Financial		Insurance
Comparison 1H21 x 1H19
									1H21
R$ million	1H19	1H21
	x 1H19
Total Revenues	67,080	71,030		5.9%
Total Expenses	23,932	22,194		(7.3)%
Efficiency Ratio	49.4%	45.7%		(3.7) p.p
EBT	17,196	19,287		7.7%

4

Funding & Loans

4.5% y/y	4.1% y/y
Client	Total
Funds1	Funding

Total Funding and Loan/Funding

R$ Million

1,200.0
1,000.0
800.0	694.8	715.3
600.0	559.2	581.6
400.0
200.0

R$35.0 bi

Growth of the

Bacen Portfolio +

Debentures in 1H21

723.2

584.4

135.6	133.7	138.8
0.0
			2Q20	1Q21		2Q21
			Client Funds Net of Reserve Requirements			Borrowing, Onlending and Other obligations

1- Client Funds Net of Reserve Requirements.

5