Banco Bradesco Sa · BMFBOVESPA:BBDC3

Banco Bradesco Sa — Q1 2023 Earnings Presentation

28 slides from Banco Bradesco Sa's earnings presentation, May 5, 2023

  1. Slide 1: 1Q23 Earnings Release

    1Q23 Earnings Release © bradesco!

  2. Slide 2: Highlights

    highlights Net Income Results within expectations R$ 4.3 bn (10.6% ROE) Credit provisions are still high, but within Loan Portfolio expectations R$ 879.3 bn Market net interest income in recovery Basel* 12.6 % Income from Insurance growing above projections in the quarter Clients 38.3 million Signif

  3. Slide 3: Focus on Retail with expansion in High Income and leadership in Corporate

    Focus on Retail with expansion in High Income and maintaining leadership in the Corporate segment Maintaining a strong Maintaining our retail presence leadership in the Corporate segment Strengthening our performance in the High Income sector 3

  4. Slide 4: Broad positioning in the market

    broad positioning in the market SOCIOECONOMIC CLASSES 1.5 MM High Income 15.5 Thousand Corporate REGIONS 36.5 MM 1.8 MM Individuals¹ Companies R$ 365 bn 35 MM 1.7 MM Retail SMEs R$ 514 bn Credit Credit GENERATIONS 1- 1st Checking Account Holders – Single CPSs. 4

  5. Slide 5: High income

    high income Centralized Service Content Consolidation +40% Macroeconomic Vision Investment specialists Allocation Private Banking Strategy NPS Market Share (2018 x Feb/23) Investment Recommendation +25 p.p. +16 p.p. 22% +4 p.p. Investments Cards Current Growth Bradesco Digital Platform (4Q20 vs. 4Q2

  6. Slide 6: Adapting the Cost to Serve and Digital Transformation

    Adapting the Cost to Serve and Digital Transformation Cost to Technology and Serve Digital Transformation NPS and Principality 6

  7. Slide 7: Cost to serve optimization

    cost to serve optimization Adapting the cost to serve according to the profile of each client +11 p.p. Optimization of points of sale in the pursuit of the ideal distribution model growth in the business staff Expansion of digital Transformation distribution to Retail Staff trained and ready thousan

  8. Slide 8: Technology and digital transformation

    Technology and digital transformation innovation (2023 investment) R$ 6 Bn Time to market Business transactions -40% in cloud channels portfolio in agile development 80% 35% 2023 By 2025 Greater integration with the bank 8

  9. Slide 9: NPS

    NPS We have grown in all segments Retail 20 p.p. Individuals (4Q20 vs. 1Q23) Retail 12 p.p. Companies (2H20 vs. 2H22) Prime 18 p.p. (4Q20 vs. 1Q23) Profitability Investments Account Inactivation Cards 28 p.p. (4Q20 vs. 1Q23) Source: NPS PRISM 9

  10. Slide 10: Operational performance

    operational performance R$4.3 bn profit within expectations 1Q23 37.3% y/y 0.4% q/q net income (R$ million) ALL still remains high 491 513 193 (631) 4,280 4,262 (515) (33) market net interest income recovering gradually 4Q22 - Not Client NII Market NII Expanded ALL Operating Income from Others (1) 1

  11. Slide 11: Loan portfolio

    loan portfolio R$879.3 bn 6.5% to 9.5% 2023 guidance 1Q23 5.4% y/y 1.4% q/q Individuals real estate loan | Individuals credit card 10.2% y/y 9.5% y/y 22.4% y/y 1.2% q/q 1.6% q/q 3.3% q/q 11

  12. Slide 12: Credit policies

    credit policies production of credit by risk | annual variation Approval Rate – Retail Credit higher risk lower risk Base 100 Individuals -36.8% +10.7% 100 95 85 86 67 64 Companies -45.3% +2.1% Dec/21 Mar/22 June/22 Sept/22 Dec/22 Mar/23 total -43.7% +3.3% Lower approval due to concession models ali

  13. Slide 13: Expenses with expanded ALL

    expenses with expanded ALL Expanded ALL (Expense) / Expanded Loan Portfolio % R$9.5 bn 1Q23 97% y/y 36% q/q 6.7 4.1 4.5 * 4.3 3.3 actual 25% 2.5 2.2 2.3 2023 guidance R$36.5 bn to R$39.5 bn 1Q20 1Q21 1Q22 2Q 3Q 4Q 1Q23 * Value excluding Large Corporate client 13

  14. Slide 14: ALL transition of provisioning models

    ALL transition of provisioning models (Resolution No. 2,682 vs. IFRS 9) Total Provision Total Provision - in relation to the portfolio Expanded ALL (BRGAAP) IFRS (Expected Lossess)* % 9.3 15.5 14.9 8.7 8.8 8.5 R$ 1.5 bn 7.6 7.7 7.8 60,032 R$ million 57,741 R$ billion 9.5 48,790 50,334 46,030 47,149

  15. Slide 15: Provision coverage

    provision coverage % % ALL D-H % ALL AA-C 70.6 71.9 63.4 64.7 64.7 63.0 63.7 63.6 63.5 62.2 61.7 61.6 62.9 1.8 1.8 1.8 1.9 1.7 1.6 1.3 1.1 1.0 1.0 0.9 0.9 0.8 Mar20 June20 Sept20 Dec20 Mar21 June21 Sept21 Dec21 Mar22 June22 Sept22 Dec22 Mar23 15

  16. Slide 16: NPL creation & coverage

    NPL creation & coverage NPL creation Coverage Ratios - % 1.9% 506 1.5% 1.7% 1.4% 1.1% 1.2% 1.9% 384 1.2% 1.1% 1.1% 1.2% 327 0.9% 298 310 261 278 R$ billion 12.012.1 235 10.0 10.9 218 9.2 201 204 8.1 182 6.9 7.4 7.5 7.2 7.2 5.8 111 105 101 98 105 99 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Dec21 Mar22 June Sept

  17. Slide 17: Delinquency

    delinquency NPL over 90 days % NPL 15 to 90 days % 6.3 5.6 5.5 5.5 5.2 5.1 6.2 4.9 5.1 4.8 4.9 4.9 4.8 4.8 5.3 4.4 4.5 4.6 4.6 4.9 3.9 5.1 4.5 * 4.5 3.5 3.6 4.3 3.8 3.9 3.8 3.9 4.2 3.7 2.6 4.1 3.5 3.3 3.2 3.6 3.6 3.6 2.5 1.4 1.2 1.1 3.2 0.8 * 0.4 0.2 0.3 0.2 0.1 0.1 0.1 0.1 0.0 0.1 0.1 Mar20 Mar21 M

  18. Slide 18: Renegotiated portfolio

    renegotiated portfolio Mar23 R$36 bn 55% Balance of the portfolio of the renegotiations in the quarter were less than 90 days overdue 63% ALL/ Renegotiated Portfolio Renegotiated Portfolio / Bacen Portfolio 5.8% 4.7% 5.2% 5.7% 23% NPL over 90-days Dec/20 Dec/21 Dec/22 Mar/23 18

  19. Slide 19: Net interest income

    net interest income 2.4% y/y R$ (312) mi Net Interest Income Market NII R$16.7 bn (quarterly result) 1Q23 7.3% y/y 20 bps Total NIM q/q Client NII actual (2.4)% Interest Sensitivity – ΔNII (-100 bps) (R$ million) 2023 guidance 1,523 1,580 1,419 1,240 7% to 11% 927 4Q19 4Q20 4Q21 4Q22 1Q23 19

  20. Slide 20: Fee and commission income

    fee and commission income R$8.7 bn 2% to 6% 2023 guidance 1Q23 1.6% y/y 5.5% q/q R$3.6 bn R$1.8 bn R$0.8 bn card income checking account asset management 15.2% y/y 5.1% q/q 5.2% y/y 3.0% q/q 0.1% y/y 1.6% q/q 20

  21. Slide 21: Operating expenses

    operating expenses Jan22 to Mar23 8% 5.7% 8% / 10% R$12.8 bn IPCA IGP-M Collective Agreement 1Q23 9.3% y/y 5.2% q/q 1Q23 personnel expenses administrative expenses actual 9.3% R$6 bn R$5.4 bn 2023 guidance 9.6% y/y 1.1% q/q 6.6% y/y 10.5% q/q 9% to 13% other revenues / (operating expenses) R$1.3 bn

  22. Slide 22: Insurance, pension plans and capitalization bonds

    insurance, pension plans and capitalization bonds Income from Insurance R$ million 4,300 actual 11.7% 3,286 3,669 2023 guidance 6% to 10% 1Q22 4Q22 1Q23 1Q23 premiums issued, pension contribution net income ROAE and capitalization revenue R$1.8 bn 18.2% R$25 bn 10.6% y/y 6.4% q/q 13.0% y/y 2.0% q/q

  23. Slide 23: Basel & IoC/dividends

    Basel & IoC/dividends Tier I Capital Ratio 74% 71% 20 bps 52% 44% R$ million 35% 15,863 over the quarter 9,240 10,172 5,548 2,878 12.4% 4Q22 12.6% 1Q23 12M19 12M20 12M21 12M21 1Q23 Dividends/Interest on Shareholders' Equity - Gross Gross Payout - 12 months 23

  24. Slide 24: Our people

    our people Acknowledgments FIA employee LinkedIn Top thousand Great Place experience Companies 2022 to Work employees Bloomberg 2022 Gender Equality Index Top Employers Brazil 2022 Best free financial education courses Diversity, equality & inclusion women black Unibrad | Development and Training 51

  25. Slide 25: Sustainability

    sustainability sustainable R$250 bn climate businesses 2025 target agenda As of December 2022, we had In 2022, we reached 69% of in January 2023, we announced allocated 100% of the US$500 our goal of allocating R$250 bn intermediate sectoral targets for million from our first by 2025 in sustainable

  26. Slide 26: Acknowledgments

    acknowledgments One of the most valuable Brazilian brands GLOBAL FINANCE’S PRIVATE BANK AWARDS 2023 (Interbrand global ranking) Best Private Bank for Intergenerational Wealth We are part of the 2023 Bloomberg Gender Equality Management | Global Index, which evaluates publicly traded companies accord

  27. Slide 27: 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

  28. Slide 28: 1Q23 Earnings Release

    1Q23 Earnings Release © bradesco!

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