Banco Bradesco S A : Bradesco 2Q22 - Press Release

R$2.0 bi

2Q22 Highlights

Recurring Net Income

R$7.041 billion

+11.4% in 12 months (2Q22 vs. 2Q21)

+3.2% in the quarter (2Q22 vs. 1Q22)

R$2.4 bi of Interest on Shareholders' Equity

in the 2Q22, of whichwere of

Intermediary Interest on Shareholders' Equity

(paid on June 30, 2022)

Quarterly ROAE	Quarterly ER
18.1%	42.4%
Improvement of
0.5 p.p.	3.4 p.p.
In 12 months	In 12 months
Operating Income	Total Ratio
R$10.4 billion
Basel
+8.7%in 12 months	15.6%

Income from Insurance,	Fee and Commission Income
Pension Plans and Capitalization Bonds
R$3.7 bi	+135.5% in 12 months	R$9.0 bi	+6.7% in 12 months
+12.8% in the quarter	+4.2% in the quarter

	Client NII	Operating Expenses
R$16.9 bi	+25.8% in 12 months	R$11.5 bi	+4.9% in 12 months
+7.1% in the quarter	-1.5% in the quarter

The Spread continues to improve, reaching 10.0% in the 2Q22

Expanded Loan Portfolio	Individuals	R$341.6 bi
+19.6% in 12 months +3.1% in the quarter
R$855.4 bi	+17.7% in 12 months	Companies	R$513.8 bi
+2.5% in the quarter	+16.6% in 12 months +2.1% in the quarter

Press Release

Recurring Net Income

R$ million

6,462 6,542 6,645 3,753 3,873 5,031 6,801 6,515 6,319 6,767 6,613 6,821 7,041

2Q19

3Q

4Q

1Q20

2Q

3Q

4Q

1Q21

2Q

3Q

4Q

1Q22

2Q

Increase of 11% in 12 months and 8% in the half, with accumulated profitability of 18%

We achieved a recurring net income of R$7 billion in the second quarter of 2022, 11% higher than the same period last year, reflecting the performance of the Client NII, fee and commission income, operations from insurance, and operating expenses control. We have evolved and become every new cycle, reaffirming our aim of creating opportunities even in a challenging scenario, with inflation at high levels, increased interest rates and geopolitical conflicts.

We reiterate our vocation to serve - demonstrating that "Between you and me, you will always be first"

• and we continue to work on customized solutions to meet clients' needs and expectations, in order to provide a convenient, fast and secure banking experience.

Our client base continues to grow and reached the mark of 75.5 million (+6% vs. 2Q21). Digital operations are becoming increasingly relevant on a daily basis - representing 98% of total transactions - with 12 million clients from next, 8 million from Bitz and 4 million from Digio.

We have a complete platform of digital services, which guarantees practicality, autonomy and security for clients. As a result, Digital Channels accounted for more than 33% of the credits granted, reaching the R$28 billion mark (+40% vs. 2Q21).

The expanded loan portfolio reached R$855 billion (+18% vs. 2Q21), with emphasis on the operations from Individuals, mainly in credit card products and personal/payroll-deductible loans. In line with this evolution and in a movement already expected (given the portfolio mix, which has more profitable operations, and the high interest/inflation), ALL expenses and default rates also showed growth. The quality of the portfolio continues at normal and profitable levels, maintaining good coverage ratios.

In the quarter, our Client NII reached R$16.9 billion, with growth in all periods - with improvement in the spread since 3Q21. We remained with consistent service delivery revenues and at the highest historical levels. Operations from insurance also continue to rise, with a solid result of R$3.7 billion (+136% vs.

2Q21) and quarterly ROAE of 20.9%, favored by the growth of revenues (+19% vs. 2Q21) and by the financing income.

The operating expenses remained stable in the quarter and grew by 4.9% in 12 months, below the accumulated inflation for the period - IPCA 11.9% and IGP-M 10.7%.

We reinforce our purpose and performance in Sustainable Business and Climate Agenda, being internationally recognized, with two cases highlighted as a reference for good practices in financing for the transition from a low carbon economy in the recommendations report of the GFANZ (Glasgow Financial Alliance for Net-Zero), an alliance that brings together companies committed to being Net- Zero. With this recognition, we have strengthened our work for the sustainable development of companies and society.

Throughout this report we will present our main results and details on our performance.

Enjoy the reading!

Main Information

	2Q22	1Q22	2Q21	1H22	1H21	2Q22 x	2Q22 x	1H22 x
R$ million (unless otherwise stated)	1Q22	2Q21	1H21
\ Recurring Income Statement
Recurring Net Income (1)	7,041	6,821	6,319	13,862	12,834	3.2	11.4	8.0
Book Net Income	7,075	7,009	5,974	14,084	12,127	0.9	18.4	16.1
Operating Income	10,350	10,342	9,519	20,692	19,287	0.1	8.7	7.3
Net Interest Income	16,361	17,061	15,738	33,422	31,316	(4.1)	4.0	6.7
Expanded ALL	(5,313)	(4,836)	(3,487)	(10,149)	(7,394)	9.9	52.4	37.3
Fee and Commission Income	8,976	8,611	8,412	17,587	16,479	4.2	6.7	6.7
Operating Expenses
(Personnel, Administrative and Other	(11,530)	(11,702)	(10,990)	(23,232)	(22,194)	(1.5)	4.9	4.7
Operating Expenses, Net of Income)
Income from Insurance, Pension Plans and	3,707	3,286	1,574	6,993	4,711	12.8	135.5	48.4
Capitalization Bonds
\ Statement of Financial Position
Total Assets	1,757,780	1,724,422	1,672,753	1,757,780	1,672,753	1.9	5.1	5.1
Loans - Expanded Loan Portfolio	855,381	834,451	726,453	855,381	726,453	2.5	17.7	17.7
- Individuals	341,557	331,404	285,620	341,557	285,620	3.1	19.6	19.6
- Companies	513,824	503,047	440,833	513,824	440,833	2.1	16.6	16.6
Shareholders' Equity	152,704	151,099	146,488	152,704	146,488	1.1	4.2	4.2
Assets under Management	2,655,562	2,633,530	2,593,201	2,655,562	2,593,201	0.8	2.4	2.4
\ Capital and Liquidity - %
Total Ratio	15.6	15.7	16.0	15.6	16.0	(0.1) p.p.	(0.4) p.p.	(0.4) p.p.
Tier I Capital	13.3	13.7	14.1	13.3	14.1	(0.4) p.p.	(0.8) p.p.	(0.8) p.p.
Liquidity Coverage Ratio (LCR)	168.5	137.4	156.0	168.5	156.0	31.1 p.p.	12.5 p.p.	12.5 p.p.
Net Stable Funding Ratio (NSFR)	119.7	118.1	116.1	119.7	116.1	1.6 p.p.	3.6 p.p.	3.6 p.p.
\ Profitability and Efficiency %
Annualized Return on Average Equity (ROAE) (2)	18.1	18.0	17.6	18.0	18.2	0.1 p.p.	0.5 p.p.	(0.2) p.p.
Annualized Return on Average Assets (ROAA)	1.6	1.6	1.5	1.6	1.5	-	0.1 p.p.	0.1 p.p.
Efficiency Ratio (ER) (3)	42.4	43.5	45.8	44.7	45.7	(1.1) p.p.	(3.4) p.p.	(1.0) p.p.
\ Market Indicators
Recurring Net Income per Share (accumulated	2.56	2.49	2.31	2.56	2.31	2.7	10.4	10.4
12 months) - R$ (4)
Market Capitalization (5)	168,272	196,132	231,006	168,272	231,006	(14.2)	(27.2)	(27.2)
Dividends/Interest on Shareholders' Equity	2,053	1,998	3,340	4,051	5,093	2.7	(38.5)	(20.5)
Price/Earnings Ratio (6)	6.2	7.4	9.4	6.2	9.4	(16.5)	(34.0)	(34.0)
Price to Book Ratio	1.1	1.3	1.6	1.1	1.6	(15.4)	(31.3)	(31.3)
Dividend Yield - % (7) (8)	6.5	4.5	2.4	6.5	2.4	2.0 p.p.	4.1 p.p.	4.1 p.p.
\ Portfolio Indicators - %
Delinquency Ratio (over 90 days)	3.5	3.2	2.5	3.5	2.5	0.3 p.p.	1.0 p.p.	1.0 p.p.
Delinquency Ratio (over 60 days)	4.4	4.0	3.1	4.4	3.1	0.4 p.p.	1.3 p.p.	1.3 p.p.
NPL Creation - 90 days	1.1	1.2	0.8	1.1	0.8	(0.1) p.p.	0.3 p.p.	0.3 p.p.
Coverage Ratio (> 90 days)	218.1	235.4	324.7	218.1	324.7	(17.3) p.p.	(106.6) p.p.	(106.6) p.p.
Coverage Ratio (> 60 days)	176.5	189.3	263.2	176.5	263.2	(12.8) p.p.	(86.7) p.p.	(86.7) p.p.

1. According to the non-recurring events described on page 09 of this report; (2) It excludes the asset valuation adjustments recorded under the Shareholders' Equity; (3) For 1H22 / 1H21, it considers the cumulative index in 12 months; (4) For comparison purposes, shares were adjusted in accordance with bonuses and stock splits occurred in the periods; (5) Number of shares (excluding treasury shares) vs. closing price for common and preferred shares on the last trading day of the period; (6) Recurring net income in 12 months; (7) Source: Economatica; and (8) Calculated by the share with the highest liquidity.