Banco Bradesco Sa · BMFBOVESPA:BBDC3
Banco Bradesco Sa — Q2 2024 Earnings Presentation
19 slides from Banco Bradesco Sa's earnings presentation, Aug 5, 2024
Slide 1: 2Q24 earnings release
earnings release 2Q24
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 Expenses 2Q24 Increase in the expanded portfolio in all segments, with an emphasis on SME and recurring net income 1H24 Individuals R$4.7 bi R$8.9 bi Improv
Slide 3: Loan portfolio
loan portfolio 2Q24 inflection of the portfolio curve % 12M growth R$912.1 bi Total Individuals 2.5% (q/q) 5.0% (y/y) 1.2% 5.0% 5.7% 5.7% 1.6% 2.3% 2.0% 1.2% -0.1% -1.6% June23 Sept Dec Mar24 June June23 Sept Dec Mar24 June average daily production non-earmarked portfolio* (2Q24 x 2Q23) Small and
Slide 4: Loan portfolio: individuals and companies
loan portfolio individuals R$381.8 bi companies R$530.3 bi 2.5% (q/q) 5.7% (y/y) 2.5% (q/q) 4.5% (y/y) payroll-deductible loans personal loans SME R$184.1 bi LC R$346.3 bi 0.8% (q/q) 5.1% (y/y) 3.5% (q/q) 8.0% (y/y) 7.2% (q/q) 10.2% (y/y) 0.2% (q/q) 1.7% (y/y) vehicles real estate workin
Slide 5: Performance of credit vintages: individuals mass-market
performance of credit vintages individuals mass-market Base 100 = 2019 average 129 Over 90 days delinquency (%) Individuals (total) 102 103 2019 Average Production 81 83 6.7 77 79 75 71 70 5.5 61 63 63 64 65 61 59 4.5 4.8 5.2 4.3 3.4 Peak of delinquency 104 102 102 103 128 105 122 110 114 119 113 11
Slide 6: Performance of credit vintages: companies mass-market
performance of credit vintages companies mass-market Base 100 = 2019 average Delinquency over 90 days (%) 122 119 120 SME (total) 102 95 2019 Average Production 89 7.07.2 6.4 71 63 64 59 4.1 3.9 5.4 54 53 3.1 Peak of delinquency 49 48 42 42 2.6 37 128 126 105 Mar20 Mar24 Sept Dec Dec Mar21 Dec Mar22
Slide 7: Levers to accelerate revenue growth
levers to accelerate revenue growth Pre-Approved - # of clientes Credit offers - Volume R$34 billion (Base 100 = 2Q23) (Base 100 = 2Q23) 127 in credits made available in 120 115 115 2Q24 through digital channels 109 109 109 R$84 billion 106 100 100 Total of of credits released in 2Q24 2Q23 3Q 4Q 1Q2
Slide 8: Net interest income
net interest income 2Q24 R$15.3 bi net client NII growth R$15.6 bi client NII 5.0% (q/q) 8.4% (y/y) 18.7% (q/q) 25.7% (y/y) Gross Client NII / Gross Spread (%) Net Client NII / Net Spread (%) 2.8% (q/q) 5.9% (y/y) 9.7 9.1 4.4 8.8 8.5 8.6 3.6 3.8 3.8 R$ billion 2.7 expanded portfolio mix (%) 16
Slide 9: Loan indicators
loan indicators Over 90 days1 delinquency - % Coverage Ratio - % 7.2 7.0 6.8 6.4 264 260 260 6.7 6.6 5.4 244 239 5.9 5.5 5.7 5.6 5.2 164 165 164 170 5.1 155 4.8 4.3 92 87 86 85 87 0.7 0.6 0.6 0.6 0.2 June23 Sept Dec Mar24 June June23 Sept Dec Mar24 June 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 4.8 3.5 3.2 Loan Loss Provisions/ 2Q24 Annualized portfolio (%) R$7.3 bi R$ billion 10.3 10.5 9.2 7.8 7.3 6.7% (q/q) 29.3% (y/y) 2Q23 3Q 4Q 1Q24 2Q Mass-market (individuals and companies) R$ billion 10.1 1.4% (q/q) 28.5% (y/y) Improvement of th
Slide 11: Fee and commission income
fee and commission income 2Q24 R$9.3 bi 5.1% (q/q) 6.4% (y/y) loan operations asset management R$0.7 bi 13.5% q/q 29.1% y/y R$0.9 bi 6.4% q/q 11.2% y/y Average companies daily production: +20% | (2Q24 vs 2Q23) Bradesco Asset management AUM: +R$33 billion | 2Q24 vs 1Q24 checking account card in
Slide 12: Operating expenses
operating expenses 2Q24 R$14.5 bi 8.3% 10.6% (q/q) (y/y) 7.6% (1H24 x 1H23) personnel + administrative Acceleration of the footprint adjustment with 411 movements in 2Q24 7,388 4.3 5.5% 4.5% 7,173 6,762 % (q/q) (y/y) (1H24 x 1H23) service points 3,873 3,667 3,443 820 802 809 +1.8 MM 2,695 2,70
Slide 13: Insurance, pension plans and capitalization bonds
insurance, pension plans and capitalization bonds Revenues from Insurance Premiums, Pension Contributions net income ROAE and Capitalization Bonds 2Q24 R$2.2 bi 22.1% R$30.2 bi 12.7% (q/q) 7.4% (y/y) 8.0% (q/q) 18.6% (y/y) technical provisions income from Insurance operations R$382 bi R$ million
Slide 14: Basel & interest on shareholders' equity/dividends
basel & interest on shareholders’ equity/dividends Dividends/Interest on shareholders’ equity - Gross Tier I Basel Ratio R$ million 12.6% 9,240 10,172 11,311 5,548 5,325 0.1p.p. (q/q) 0.3p.p. (y/y) 2020 2021 2022 2023 1H24 1S24 14
Slide 15: Guidance
1H24 x Annual Guidance 1H23 indicator Expanded Loan Portfolio 5.0% 7% to 11% Net Interest Income (7.5%) 3% to 7% Expanded loan loss provisions - R$ billion R$15.1 R$35 to R$39 Fee and Commission Income 3.9% 2% to 6% Operating Expenses (Personnel + Administrative + Other) 7.6% 5% to 9% Income from In
Slide 16: Organizational structure
he bank run t SMEs Business En a e r s bl Organizational Structure ch k ang e a n the b 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 Detailing and execution of initiatives with Reduction of layers and span of control confirmation of the expected fin
Slide 18: Conclusions
conclusions Step by step solid and safe profitability growth Revenues growing, with positive inflection of the client NII Focus on net NII, on the risk-adjusted return Levers to increase efficiency and accelerate Bradesco's operational improvement Transformation plan execution at an accelerated pace
Slide 19: 2Q24 earnings release
earnings release 2Q24