Banco Bradesco Sa · BMFBOVESPA:BBDC3
Banco Bradesco Sa — Q3 2024 Earnings Presentation
22 slides from Banco Bradesco Sa's earnings presentation, Oct 31, 2024
Slide 1: 3Q24 earnings release
earnings release 3Q24
Slide 2: Operational performance
operational performance Solid and safe profitability growth Evolution of the net NII, driven by client NII and reduction of Loan Loss Provision Expense 3Q24 Productivity gains, with rising revenues, controlled credit risk and footprint recurring net income adjustment 9M24 R$5.2 bi R$14.2 bi Balanced
Slide 3: Total revenue
total revenue 3Q24 R$30.6 bi total net interest income fee and commission income1 insurance, pension plans and capitalization bonds 3.7% (q/q) 3.5% (y/y) 2.7% (q/q) 0.9% (y/y) 2.8% (q/q) 5.1% (y/y) 8.7% (q/q) 9.2% (y/y) 5.5% 3.7% 1.0% -1.9% -6.3% R$ billion 30.6 29.6 29.9 29.5 28.0 3Q23 4Q23
Slide 4: Loan portfolio
loan portfolio 3Q24 sustained growth across all segments % 12M growth R$943.9 bi Total Individuals 7.6% 3.5% (q/q) 7.6% (y/y) 5.0% 10.0% 5.7% -0.1% Average daily Production 1.2% 2.3% 1.2% 2.0% non-earmarked portfolio* (3Q24 vs. 3Q23) -1.6% Sept23 Dec Mar24 June Sept Sept23 Dec Mar24 June Sept Tota
Slide 5: Balanced growth in loan portfolio
balanced growth in loan portfolio individuals R$396.8 bi companies R$547.1 bi 3.9% (q/q) 10.0% (y/y) 3.2% (q/q) 5.9% (y/y) payroll-deductible loans personal loans SME LC 2.0% (q/q) 6.4% (y/y) 5.9% (q/q) 16.7% (y/y) R$193.2 bi R$353.9 bi 5.0% (q/q) 16.9% (y/y) 2.2% (q/q) 0.7% (y/y) CDC/ve
Slide 6: Performance of credit vintages: mass-market individuals
performance of credit vintages mass-market individuals Base 100 = 2019 average Over 90 days delinquency (%) Individuals (total) 102 103 2019 Average Production 6.7 5.1 5.2 78 77 79 4.3 5.1 66 3.4 3.6 64 62 Peak of delinquency Mar20 Dec June Sept Dec Mar21 Dec Mar22 June Sept June Sept Dec Mar23 June
Slide 7: Performance of credit vintages: mass-market companies
performance of credit vintages mass-market companies Base 100 = 2019 average Over 90 days delinquency (%) SME (total) 119 104 95 2019 Average Production 7.2 5.4 4.3 4.5 65 5.2 61 62 Peak of delinquency 2.7 52 1.9 41 Mar21 June June June June June Mar23 Dec Mar20 Sept Dec Sept Dec Mar22 Sept Dec Sept
Slide 8: Net interest income
net interest income 3Q24 client NII Client NII net of provision R$16.0 bi R$15.6 bi 2.5% (q/q) 1.3% (y/y) R$8.5 bi 6.8% (q/q) 28.0% (y/y) 2.7% (q/q) 0.9% (y/y) % 9.1 8.8 8.5 8.6 8.4 % 3.8 3.8 4.4 4.5 2.7 8.5 expanded portfolio mix (%) R$ billion R$ billion 8.0 6.6 6.7 15.8 15.4 15.3 15.6 14.5
Slide 9: Loan indicators
loan indicators Over 90 days delinquency - % Coverage Ratio - % 7.2 6.8 6.4 264 264 260 260 6.6 5.4 239 5.2 5.9 5.5 5.2 5.1 170 5.6 165 164 169 5.1 155 4.8 4.3 4.2 87 86 85 87 90 0.6 0.6 0.6 0.2 0.1 Sept23 Dec Mar24 June Sept Sept23 Dec Mar24 June Sept Coverage Ratio over 90 Days Individuals Micro,
Slide 10: Expenses with expanded loan loss provisions
expenses with expanded loan loss provisions 4.8 4.2 3.5 3Q24 3.2 3.0 LLP / Credit Portfolio R$7.1 bi R$ billion (% Annualized) 10.5 9.2 7.8 7.3 7.1 2.2% (q/q) 22.4% (y/y) 3Q23 4Q 1Q24 2Q 3Q mass-market (individuals and companies) R$ billion 1.2 p.p. decrease in cost of risk 2.1% (q/q) 19.7% (y/y
Slide 11: Fee and commission income
fee and commission income 3Q24 consortia R$0.7 bi R$9.9 bi 6.6% q/q 15.6% y/y Market share: Global 20.1% | Vehicle 23.6% | Real Estate 12.9% | Trucks, Tractors and Agricultural Implements 17.4% 6.3% (q/q) 8.7% (y/y) 5.5% (9M24 vs. 9M23) asset management R$1.0 bi 11.0% q/q 13.7% y/y 2.8% (q/q
Slide 12: Operating expenses
operating expenses 3Q24 R$15.1 bi 4.0% (q/q) 12.1% (y/y) 9.1% (9M24 vs. 9M23) personnel + administrative excluding increased stake in Cielo excluding increased 2.0% (q/q) 9.9% (y/y) 8.4% (9M24 vs. 9M23) stake in 0.6% 4.9% 4.6% Acceleration of the footprint adjustment with 415 movements in 3
Slide 13: Insurance, pension plans and capitalization bonds
insurance, pension plans and capitalization bonds revenues from insurance premiums, pension contributions and capitalization bonds net income ROAE 23.7% 3Q24 9M24 3Q24 9M24 R$32 bi R$90 bi R$2.4 bi R$6.5 bi 4.2% (q/q) 11.7% (y/y) 14.0% (9M24 vs. 9M23) 8.1% (q/q) 0.9% (y/y) 0.4% (9M24 vs. 9M23)
Slide 14: Basel & dividends/IOC
basel & dividends/IOC Dividends/IOC - Gross Tier I Basel Ratio R$ million 12.7% 11,311 10,172 9,240 0.1p.p. (q/q) 0.7p.p. (y/y) 8,174 5,548 12M20 12M21 12M22 12M23 9M24 14
Slide 15: Guidance
Guidance 9M24 vs. 9M23 2024 Actual Annual Guidance Actual (ex-increased Cielo stake) indicator Expanded Loan Portfolio 7.6% 7.6% 7% to 11% Net Interest Income (4.8%) (4.8%) 3% to 7% Expanded loan loss provisions - R$ billion R$22.2 R$22.2 R$35 to R$39 Fee and Commission Income 5.5% 4.3% 2% to 6% Ope
Slide 16: Movement of change, Transforming all Bradesco
Translation: Movement of change, Transforming all Bradesco 16
Slide 17: Strategic plan in perspective
strategic plan in perspective Profitability recovery in a sustainable way, with more agility, efficiency and use of technology Diagnostic & Plan Execution New Organizational Structure Strengthening of IT board of Reduction of layers and span of control revision executive directors Transformation off
Slide 18: Conclusions
conclusions solid and safe profitability growth Revenues growth, with recovery in net interest income, fee income and insurance revenue Loan growth across all segments and products, focusing on NII net of provisions, on the risk-adjusted return Measures to increase efficiency and accelerate Bradesco
Slide 19: A complete portfolio of wealth management solutions
a complete portfolio of wealth management solutions imagem gerada por inteligência artificial 19
Slide 20: A complete portfolio of wealth management solutions
a complete portfolio of wealth management solutions imagem gerada por inteligência artificial 20
Slide 21: New Bradesco Principal segment
built based on the voice of our customers new Bradesco Principal segment Principal Strategic income >=R$25k repositioning prime AuC>=R$300k private Value proposition underwent a robust process including customer research, international benchmarks, one-on-ones, data analytics and tech advance New ser
Slide 22: 3Q24 earnings release
earnings release 3Q24