Banco Bradesco Sa · BMFBOVESPA:BBDC3
Banco Bradesco Sa — Q1 2024 Earnings Presentation
20 slides from Banco Bradesco Sa's earnings presentation, May 2, 2024
Slide 1: Earnings
earnings
Slide 2: Operational performance
operational performance Improvement of ALL in retail and wholesale 1Q24 Credit growth in all segments recurring net income Gross Client NII reflects a less risky mix, better R$ 4.2 bn client quality, and challenges in SME Robust Control of Operating Expenses 46.3% 1.6% Improvement in the over 90 day
Slide 3: Loan portfolio
loan portfolio 1Q24 individuals R$372.6 bn 1.9% (q/q) 2.0% (y/y) R$889.9 bn payroll-deductible loans personal loans 1.4% (q/q) 1.2% (y/y) 2.1% (q/q) 4.5% (y/y) 10.1% (q/q) 1.8% (y/y) inflection of the portfolio curve real estate vehicles % 12M growth 1.8% (q/q) 5.8% (y/y) 0.2% (q/q) 4.8% (y/y) +5.4
Slide 4: Performance of credit vintages: individuals mass-market
performance of credit vintages individuals mass-market Products Group Production 1Q24 vs. 1Q23 Base 100 = 2019 Average Payroll-deductible Loans 46% 129 Installments 18% Financing 12% 102 103 Cards -14% 2019 Average Production Revolving 87% 81 83 77 79 Total 25% 75 71 70 61 61 63 59 Over 90 days deli
Slide 5: Performance of credit vintages: companies mass-market
performance of credit vintages companies mass-market Products Group Production 1Q24 vs. 1Q23 Base 100 = 2019 Average Installments 52% Discounts 36% 122 119 120 Financing -22% 102 Cards -10% 95 2019 Average Production Revolving 22% 89 Total 3% 71 63 54 53 Over 90 days delinquency (%) | 49 48 42 42 SM
Slide 6: Net interest income
net interest income 1Q24 market NII R$15.2 bn 696 630 R$0.6 bn R$ million 23 6.1% (q/q) 9.0% (y/y) 1Q23 2Q (96) 3Q 4Q 1Q24 (312) expanded portfolio mix (%) Mar24 Dec23 Mar23 Mar24 vs. Mar23 (p.p.) client NII R$ 14.5 bn 5.9% (q/q) 14.4% (y/y) Individuals 41.9 41.7 41.5 +0.4 Payroll-deductible Loans 1
Slide 7: Loan indicators
loan indicators Over 90 days delinquency - % Coverage Ratio - % 7.0 7.2 6.3 6.8 278 6.4 264 260 6.7 6.6 5.9 244 239 6.2 5.5 5.7 (1) 5.6 (2) 182 5.1 5.1 (3) 4.8 (4) 164 155 165 164 99 92 87 0.7 (5) (7) (8) 86 85 0.6 (6) 0.6 0.6 0.2 Mar23 June Sept Dec Mar24 Mar23 June Sept Dec Mar24 Coverage Ratio ov
Slide 8: Expenses with expanded ALL
expenses with expanded ALL 4.3 4.8 4.2 4.8 3.5 1Q24 R$ billion ALL/Portfolio annualized (%) R$7.8 bn 10.3 10.5 9.5 9.2 7.8 25.8% (q/q) 17.9% (y/y) 1Q23 2Q 3Q 4Q 1Q24 Mass-market 13.7% (q/q) 22.3% (y/y) R$ billion Efficiency in collection 10.1 9.4 8.8 New vintages improvement quality 8.5 7.3 Performa
Slide 9: Fee and commission income
fee and commission income 1Q24 R$8.9 bn 1.8% (q/q) 1.3% (y/y) consortia asset management R$0.6 bn 6.8% q/q 13.7% y/y R$0.8 bn 0.9% q/q 4.2% y/y Market share: Vehicle 25.1% | Real estate 14.0% | Feb24 Market Share: 16.3% | mar24 Best Bank to invest in for the 3rd time (Ranking MBPI. IstoÉ Dinheiro) l
Slide 10: Operating expenses
operating expenses 1Q24 R$13.4 bn personnel + 5.1% (q/q) 3.5% (y/y) administrative 10.5% (q/q) 4.4% (y/y) Footprint optimization with about 300 movements in 1Q24 personnel administrative We have completed the 2.3% (q/q) 5.6% (y/y) 8.2% (q/q) 1.2% (y/y) opening of 122 companies branches quarterly ER
Slide 11: Insurance, pension plans and capitalization bonds
insurance, pension plans and capitalization bonds premium income. pension plan contributions and capitalization net income ROAE p.a. bond income R$2.0 bn 19.8% R$28 bn 21.6% (q/q) 10.2% (y/y) 0.2% (q/q) 11.8% (y/y) technical provisions income from insurance R$373 bn R$ million 4,745 8.9% (y/y) 3,669
Slide 12: Basel & interest on capital/dividends
basel & interest on capital/dividends Dividends/Interest on capital - Gross Tier I Basel Ratio R$ million 12.7% 9,240 10,172 11,311 0.5p.p. (q/q) 0.2p.p. (y/y) 5,548 2,616 2020 2021 12M22 2022 12M23 2023 1T24 1Q24 12
Slide 13: Guidance
Guidance 1Q24 Guidance Actual 2024 Expanded Loan Portfolio 1.2% 7% to 11% Net Interest Income (9.0%) 3% to 7% Fee and Commission Income 1.3% 2% to 6% Operating Expenses (Personnel + Administrative + Other) 4.4% 5% to 9% (1) Income from Insurance, 8.9% 4% to 8% Pension Plans and Capitalization Bonds
Slide 14: Organizational Structure SMEs
Organizational Structure SMEs
Slide 15: Accelerating in transactions and businesses (digital channels)
accelerating in transactions and businesses +98% 95% are concentrated on Mobile and Internet 87% 95% 1Q20 1Q24 transactions are 61% Pix - 100% Transfers 93% 95% carried out through Payments 78% 88% Digital Channels 1Q14 1Q20 1Q24 Robust SLA: 99.95% availability of digital channels* in 1Q24 (99.97% I
Slide 16: 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 Reduction of layers and span of control revision Transformation office, +800 people involved +2,600 initiatives C-Le
Slide 17: Companies & businesses
companies & businesses 143 thousand clients thousand of the base is already professionals focused supported through this model on customer service 122 openings of companies Exclusive customer service model for companies Specialists in Cash, International Services, Investments, Insurance and Loans br
Slide 18: Expansion of new platform
expansion of new platform Simplified journeys, digital enrollment, % % % personalized offers and experiences of presence in Brazilian insurance sales (vs. 1Q23) production of payroll- deductible loans (vs. 1Q23) +1,000 correspondents now use the new municipalities with platform and the expansion to
Slide 19: Conclusions
conclusões conclusions We boosted the bank in the “run” and in the “change” run the bank change the bank Improvement of ALL in retail and New Organizational Structure wholesale Reduction of layers and span of control Credit growth in all segments revision Gross Client NII reflects a less risky Trans
Slide 20: Earnings
earnings