Banco Bradesco Sa · BMFBOVESPA:BBDC3
Banco Bradesco Sa — Q4 2023 Earnings Presentation
25 slides from Banco Bradesco Sa's earnings presentation, Feb 7, 2024
Slide 1: Earnings Strategic Plan 4Q23
Earnings Strategic Plan 4Q23
Slide 2: Operational performance
operational performance Wholesale ALL reinforcement due to one-off cases 4Q23 ALL reinforcement (R$1.4 bn) Accumulated ROAE : 10.0% Reduction of ALL in the retail recurring net income R$2.9 bn 2023 R$16.3 bn Individual and SME loans gaining traction 37.7% 80.4% 21.2% 4Q23 vs. 3Q23 (q/q) 4Q23 vs. 4Q2
Slide 3: Loan portfolio
loan portfolio average daily production individuals nonearmarked portfolio* (2H23 x 1H23) 1.3 % q/q 1.2 % y/y Total 10 % Individuals 22 % Companies 7% companies SME 1.5% q/q 4.8% y/y R$877.3 bn large corporates 2.1% q/q 3.0% y/y 4Q23 stable in the quarter 1.6 % y/y total 0.9% q/q 3.6% y/y *not inclu
Slide 4: Expenses with expanded ALL and loan indicators
expenses with expanded ALL and loan indicators 6.7 4.8 4.2 ALL/Portfolio (%) R$ billion R$10.5 bn R$39.5 bn Total ALL 14.9 9.2 10.5 Retail Massificado 15% 3,4% Wholesale Atacado 4Q23 14.5% q/q 29.3% y/y 2023 22.4% 23/22 10.0 8.8 8.5 Large 4.9 0.4 Corporate 2.0 Client 4T22 4Q22 3T23 3Q23 4T23 4Q23 De
Slide 5: Net interest income
net interest income Client NII 4Q23 2023 R$ 15.4 bn R$ 64.9 bn R$16.1 bn spread 8.8% (4Q23) 2.6% q/q 4.3% 23/22 4Q23 1.7% q/q 3.3% y/y 4Q23 2023 Market NII R$ 0.7 bn R$0.3 bn R$65.2 bn R$0.7 bn q/q R$1.7 bn 23/22 2023 1.8% 23/22 R$1.3 bn Interest Sensitivity – Δ NII 12 months (-100 bps) | 4Q23 5
Slide 6: Fee and commission income
fee and comission income loan operations R$0.6 bn 11.0% q/q 2.0% y/y 17.6% 23/22 R$9.0 bn card income R$3.8 bn 3.4% q/q 0.4% y/y 5.2% 23/22 4Q23 0.9% q/q 2.4% y/y consortia R$0.6 bn 3.2% q/q 2.7% y/y 1.8% 23/22 R$35.6 bn checking account 2023 0.1% 23/22 R$1.7 bn 3.9% q/q 12.9% y/y 8.8% 23/22 underwr
Slide 7: Operating expenses
operating expenses Collective agreement impact 7% (2023/2022) 4,62% IPCA R$14.9 bn 2023 4.58% 2022 8% e 10% 12 months administrative customer service points1 personnel 4Q23 11.2% q/q 10.7% y/y (542) R$6.5 bn R$6.0 bn in 12 months 7.4 thousand 7.9 thousand 5.0% q/q 5.7% q/q Dec23 Dec22 R$54.2 bn 9.2%
Slide 8: Insurance, pension plans and capitalization bonds
insurance, pension plans and capitalization bonds Income from Insurance 17,879 R$ million 14,761 2.6% q/q 4,745 4,624 10.3% y/y 4,300 21.1% 23/22 4Q22 3Q23 4Q23 2022 2023 revenues net income Quarterly ROAE 24.8% 4Q23 2023 4Q23 2023 R$28 bn R$106.6 bn R$2.5 bn R$8.9 bn 0.6% q/q 14.3% y/y 11.8% 23/22
Slide 9: Basel & interest on shareholders' equity/dividends
basel & interest on shareholders’ equity/dividends 79% R$ million 52% 44% Basel Ratio Tier I 35% 81 bps 5,548 9,240 10,172 11,311 in the year 13.2% 2020 2021 2022 2023 12.4 % Dividends/Interest on Shareholders' Equity - Gross 4Q22 4Q23 Gross Payout - Accumulated in the Year 9
Slide 10: Guidance 2024
guidance 2024 2023 2024 Esperado Expected Actual Realizado Esperado Expected Carteira Expanded deLoan Crédito Expandida Portfolio 1% 1% to 5% a 5% (1.6%) (1,6%) 7% 7%toa11% 11% Margem Financeira Net Interest IncomeTotal 2% to 6% a 6% (1.8%) (1,8%) 3% 3%to a 7% Fee and de Receitas Commission Prestaçã
Slide 11: Strategic Plan
A\\\\\\AA\\
Slide 12: We renewed Bradesco's strategic vision based on a solid but accelerated approach
We renewed Bradesco's strategic vision based on a solid but accelerated approach Diagnostic Plan Execution We used a number of market We built a pragmatic plan We have identified short- and Bradesco’s surveys and made up of multiple term opportunities and have data to provide details of the workstre
Slide 13: We perform a diagnostic of the strengths and opportunities
Diagnostic Plan Execution We perform a diagnostic of the strengths and opportunities, supported by various experts in Brazil and around the world Brazilian banking market is one of the most profitable and resilient, and with ROE among the highest in the world. Bradesco is not limited in opportunitie
Slide 14: We reaffirm our ambition to be a complete bank, profitable and prepared to compete
Diagnostic Plan Execution We reaffirm our ambition to be a complete bank, profitable and prepared to compete in the short and long-term ambitions Leader or Top 3 Physical bank with All major client segments appropriate cost and Efficient Digital Banking with focused on the highest humanized experien
Slide 15: We will build on our strengths to boost the growth of our bottom line
Diagnostic Plan Execution We will build on our strenghts to boost the growth of our bottom line 71MM clients Leader in SMEs Leader and largest insurance group in Latin America Top 2 in Corporate and Middle +R$100 billion in revenue in 2023 Top 2 Private Banking of Brasil First bank to use AI in the
Slide 16: Organizational Structure
Diagnostic Plan Execution We will focus on a strategic agenda that speeds up communicated initiatives and introduces new SMEs Organizational Structure 16
Slide 17: Run the bank, change the bank
Diagnostic Plan Execution People Mass Retail Affluent SME Credit We have adjusted the organizational structure to align it with the new strategy and we will adapt the people management model and culture Run the bank Change the bank • Verticalized business units • Senior team 100% dedicated to transf
Slide 18: We set up a new structure to streamline decision making and increase customer-centricity
Diagnostic Plan Execution People Mass Retail Affluent SME Credit We set up a new structure to streamline decision making and increase customer-centricity CEO Chief of Staff Business Units (BUs) Specialized Support Units Treasury CTO CHRO and Retail Digital and Wholesale Wealth Credit COO / CIO (Tran
Slide 19: We set up a new structure to streamline decision making and increase customer-centricity
Diagnostic Plan Execution People Mass Retail Affluent SME Credit We set up a new structure to streamline decision making and increase customer-centricity CEO Chief of Staff Business Units (BUs) Specialized Support Units Treasury CTO CHRO and Retail Digital and Wholesale Wealth Credit COO / CIO (Tran
Slide 20: We will adapt the Mass Retail service model to client preferences
Diagnostic Plan Execution People Mass Retail Affluent SME Credit We will adapt the Mass Retail service model to client preferences, balancing the economic equation We have a high 60MM penetration of products It is in our DNA clients and 60% of principality Restructured Digital Physical Retail with a
Slide 21: We will launch the new Affluent segment
Diagnositc Plan Execution People Mass Retail Affluent SME Credit We will launch the new Affluent segment including an aspirational value proposition to seek more centrality in the relationships with our clients 1.7MM One of the leaders in Manager as anchor of clients the segment humanized relationsh
Slide 22: We will expand our leadership in SMEs with efficiency improvements
Diagnostic Plan Execution People Mass Retail Affluent SME Credit We will expand our leadership in SMEs with efficiency improvements Largest loan portfolio with Implementation of new branches and approximately 20% market dedicated platforms share companies & businesses 1.7MM Leader in the fastest gro
Slide 23: We have integrated all stages of the credit cycle in a new area
Diagnositc Plan Execution People Mass Retail Affluent SME Credit We have integrated all stages of the credit cycle in a new area to strengthen this bradesco’s differential Current credit share ~14% ambition: 15-19% More intensive use of Integrated view of the Incorporation of new data credit cycle,
Slide 24: Conclusions
Conclusions Brazil represents a vast and lucrative financial market, one in which we are not limited by market opportunity We are already in the execution phase of a solid strategic plan designed to capture benefits over the next 5 years Bradesco’s Group strengths will be leveraged to ensure the suc
Slide 25: Disclaimer
Disclaimer This presentation may contain information about future events. This information is not merely historical facts, but reflects the hopes and expectations of the company’s management. The words “anticipates”, “desires”, “expects”, “predicts”, “plans”, “foretells”, “projects”, “aims” and simi