Banco Bradesco Sa · BMFBOVESPA:BBDC3
Banco Bradesco Sa — Q4 2024 Earnings Presentation
27 slides from Banco Bradesco Sa's earnings presentation, Feb 7, 2025
Slide 1: 4Q24 earnings release
earnings release 4Q24
Slide 2: Profitability continues to grow in a solid and safe way, driven by revenues
Profitability continues to grow in a solid and safe way, driven by revenues 4Q24 recurring net income 2024 R$5.4 bi R$19.6 bi 3.4% 87.7% 20.0% 4Q24 vs. 3Q24 (q/q) 4Q24 vs. 4Q23 (y/y) 2024 vs. 2023 ROAE 12.7% 0.3 p.p. (q/q) 5.8 p.p. (y/y) Note: Net non-recurring provision for restructuring R$443
Slide 3: Operational highlights
operational highlights Portfolio growth 11.9% in the year with highlight to SMEs and Individuals Expanding customer base: +2.1 mi in 2024 99% of transactions are carried out on digital channels 27.5 mi +103% +49% 39.1k monthly Payroll-deductible insurance Dec24 correspondents vs. transactions loan c
Slide 4: Total revenues R$32.3 bi
total revenues 4Q24 (1) R$32.3 bi total net interest income fee and commission income (1) insurance, pension plans and capitalization bonds 5.4% (q/q) 7.9% (y/y) 6.2% (q/q) 5.4% (y/y) 1.8% (q/q) 7.9% (y/y) 9.6% (q/q) 16.6% (y/y) 5.5% 5.4% 3.7% 1.0% R$ billion -6.3% 32.3 30.6 29.9 29.5 28.0 4
Slide 5: Loan portfolio R$981.7 bi
loan portfolio 4Q24 growth across all segments % 12M growth R$981.7 bi Total 7.6% 11.9% Individuals 13.3% 4.0% (q/q) 11.9% (y/y) 5.0% 10.0% 1.2% 5.7% -1.6% average daily production 1.2% 2.0% non-earmarked portfolio* (4Q24 x 4Q23) Dec23 Mar24 June Sept Dec Dec23 Mar24 June Sept Dec Total Individual
Slide 6: Solid growth in loan portfolio
solid growth in loan portfolio individuals R$414.1 bi companies R$567.6 bi 4.3% (q/q) 13.3% (y/y) 3.8% (q/q) 10.9% (y/y) real estate personal loans MSME LC 5.0% (q/q) 14.9% (y/y) 3.4% (q/q) 24.8% (y/y) R$214.9 bi R$352.7 bi 11.2% (q/q) 28.0% (y/y) 0.3% (q/q) 2.5% (y/y) CDC/vehicle leasin
Slide 7: We made adjustments to our risk appetite
we made adjustments to our risk appetite Pre-Approved - # of clients Credit offers – Volume (Base 100 = 2Q23) (Base 100 = 2Q23) 120 121 127 128 115 117 119 115 109 109 109 106 100 100 2T23 2Q23 3T 3Q 4T 4Q 1T24 1Q24 2T 2Q 3T 3Q 4T 4Q 2T23 2Q23 3T 3Q 4T 4Q 1T24 1Q24 2T 2Q 3T 3Q 4T 4Q Bacen Loan Portf
Slide 8: Net interest income
net interest income 4Q24 client NII client NII net of provisions R$16.2 bi R$8.7 bi R$17.0 bi 3.3% (q/q) 4.7% (y/y) 5.1% (24/23) 2.2% (q/q) 77.1% (y/y) 25.8% (24/23) % % 6.2% (q/q) 5.4% (y/y) 2.3% (24/23) 8.8 8.5 8.6 8.4 8.4 4.4 4.5 3.8 4.4 expanded portfolio mix (%) 2.7 15.6 16.2 15.4 15.3
Slide 9: Loan indicators
loan indicators Over 90-day delinquency - % Coverage Ratio - % 6.8 6.4 5.4 5.2 5.1 264 264 260 260 259 5.9 5.5 5.2 4.4 5.1 5.1 170 169 169 4.8 165 164 4.3 4.2 4.0 86 85 87 90 92 0.6 0.6 0.2 0.1 0.1 Dec23 Mar24 June Sept Dec Dec23 Mar24 June Sept Dec Coverage Ratio over 90 Days Coverage Ratio over 90
Slide 10: Expenses with expanded loan loss provisions
expenses with expanded loan loss provisions 4.8 3.5 4Q24 R$ billion 3.2 3.0 3.0 LLP/Loan Portfolio (% Annualized) R$7.5 bi 10.5 7.8 7.3 7.1 7.5 4.7% (q/q) 29.1% (y/y) 24.9% (24/23) 4Q23 1Q24 2Q 3Q 4Q mass-market (individuals and companies) R$ billion Reduction in cost of risk (LLP / Loan 1.3% (q
Slide 11: Fee and commission income
fee and commission income 4Q24 consortia R$0.7 bi R$10.3 bi 4.0% q/q 16.5% y/y 16.7% 24/23 Market share: Global 19.6% | Auto 23.2% | Real Estate 12.4% | Trucks, Tractors and Agricultural Implements 16.7% 3.6% (q/q) 13.7% (y/y) 7.6% (24/23) asset management 1.8% (q/q) 7.9% (y/y) 5.2% (24/23)
Slide 12: Operating expenses
operating expenses 4Q24 R$16.4 bi 9.1% (q/q) 9.9% (y/y) 9.3% (24/23) personnel + administrative excluding increased stake in Cielo excluding increased stake in 8.8% (q/q) 7.5% (y/y) 8.1% (24/23) 6.7% 5.6% 4.2% Acceleration of the footprint adjustment (q/q) (y/y) (24/23) service points 7,173
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 25.1% 1.4p.p. (q/q) 4Q24 2024 4Q24 2024 R$32 bi R$121 bi R$2.5 bi R$9.1 bi 0.1% (q/q) 12.4% (y/y) 13.6% (24/23) 6.6% (q/q) 1.9% (y/y) 0.8% (24/23)
Slide 14: Capital & dividends/IOC
capital & dividends/IOC 0.1 p.p. 12,7 Dividends/IOC - Gross 1,5 R$ million 11,311 11,283 10,172 9,240 11,2 5,548 (1)(1) 09.30.24 12.31.24 01.01.25 (1) 12M20 12M21 12M22 12M23 12M24 Common Equity Additional Capital (1) In connection with the effects already recognized in Equity/Financial Statements
Slide 15: Guidance 2024
Guidance 2024 Annual Indicator Actual (excluding increased steak in Cielo) Actual Expanded Loan Portfolio 7% to 11% 11.9% 11.9% Total net interest income 3% to 7% (2.3%) (2.3%) Expanded loan loss provisions - R$ billion R$35 to R$39 R$29.7 R$29.7 Fee and Commission Income 2% to 6% 5.2% 7.6% Operatin
Slide 16: RUN
RUN Ry movimento change mun®™
Slide 17: Business enablers: transformation framework
SMEs high income payments business digital retail credit synergies efficiency e nable rs technology management model and culture organizational 17
Slide 18: Organizational highlights
highlights organizational NPS Layers reduction, span of C-levels hiring and NPS indicators usage control revision leadership reskilling expansion organiza- tional Transformation office with Product areas 800 people reorganization 18
Slide 19: Management model and culture
highlights Management model and culture New variable compensation plan to leadership Management model and culture Internal cultural (1) survey with 74% participation Action plan for #We Are For Clients culture evolution SOU Bradesco, #Challenge Oriented which improves our (2) management model #An Em
Slide 20: Retail and digital channels
highlights retail and digital channels Digital retail service model evolution Around 1 Mi clients in the new model Service by integrated chat with Better client experience in the App GenAI BIA with 90% resolution Better NBO models with intensive AI use (hyper- personalization) 66% reduction in time
Slide 21: Segments
highlights segments SMEs We moved forward in SMEs with 122 companies branches, new value proposition, new account load and we ended the year with 150 companies branches Middle corporate: + 9 platforms and +RMs Loan portfolio growth of 28%, with market share gain Wholesale: Agro segment creation and
Slide 22: Credit
credit highlights Credit BU and creation Efficiency in Improved risk of portfolio collection with an management with management area improvement of volatility clusters 25% vs 2023 Credit Risk-adjusted price Intensive use of Hiring of ~200 modeling with AI and conglomerate data professionals elastici
Slide 23: Technology
highlights technology Tech modernization (new processes and people) Enterprise agility: We ended the year with +500 squads and scaling up in 2025 Dedicated team of +10,000 people (internalization of +1,000 people) From 50% to 79% of digital channels migrated to the cloud We are one of the world's pi
Slide 24: Next steps
next steps organizational efficiency, management and culture • Footprint adjustment continues • Backoffice efficiency and cost control plan • Culture evolution – SOU Bradesco (I am Bradesco) segments: high income, SMEs, digital retail • Bradesco Principal: expects to reach 500,000 customers in 2025
Slide 25: Guidance 2025
Guidance 2025 Annual Indicador Expanded Loan Portfolio 4% to 8% NII net of provisions R$37 bi to R$41 bi (Total net interest income – Expanded loan loss provisions) 4% to 8% Fee and Commission Income Operating Expenses 5% to 9% (Personnel + Administrative + Others) Income from Insurance, Pension Pla
Slide 26: Conclusions
conclusions Profitability continues to grow in a solid and safe way, driven by revenues NII net of provisions improved, demonstrating the strategy of increasing production with the right mix Loan portfolio with balanced growth and continuous improvement in delinquency ratios conclusões Adjustment of
Slide 27: 4Q24 earnings release
earnings release 4Q24