Banco Bradesco Sa · BMFBOVESPA:BBDC3
Banco Bradesco Sa — Q3 2023 Earnings Presentation
23 slides from Banco Bradesco Sa's earnings presentation, Nov 10, 2023
Slide 1: Com o Bradesco, eu
Com o Bradesco, eu
Slide 2: Highlights
highlights Net Income R$ 4.6 bn (11.3% ROE) Improvement of the delinquency ratio Operating Income | +5.0% q/q +55 bps in Basel Tier I Loan Portfolio Recovery of market net interest income R$ 877.5 bn Delinquency Ratio 90+ Decrease in the expanded ALL -0.1 p.p. Positive performance in fees and commis
Slide 3: Recognition of our journey of Digital Transformation
Recognition of our journey of Digital Transformation BRADigital and Innovation Innovation in Digital Banking Awards (The Banker) Digital New Bradesco Technology Invest + (investment consolidator) Global case in the port and Innovation Hub in Recife “Investment Banking” category Launch of the new App
Slide 4: Focus on digital: more autonomy, better experience, more business
focus on digital more autonomy a better experience a lot more business 23 MM 16 MM MAKE IT EASIER Monthly Single Daily accesses users accesses per client App Usage Sept/23 WITH BRADESCO PIX Warning of business on the App 9M23 X 9M22 BIA through WhatsApp suspicious transactions Individuals Companies
Slide 5: Bradesco Global Solutions
Bradesco Global Solutions More than just internet banking, it’s a financial Another groundbreaking management platform for solution! companies - all in one place Customizable homepage View by economic group SWIFT Files Multilingual, multicurrency and multibank 5
Slide 6: High income vertical
high income vertical Bradesco Zero Brokerage Fee Prime Loan Portfolio +13% y/y Assets under custody Funding Portfolio Professionals dedicated to Clients relationships Investment specialists Bradesco Asset Management results of a robust reorganization and under management* investment strategy Promine
Slide 7: My account
the bank that stands with you Bradesco Bank my account Customer assets and liabilities (CAL) the international digital account for 45% y/y 7% q/q individuals that has taken ff! Loan portfolio 26% y/y 5.5% q/q Global Private Bank thousand accounts in only 3 months 4th consecutive year as the top Weal
Slide 8: Focus on partnerships that create value and centrality for our clients
focus on partnerships that create value and centrality THE CENTURION® CARD® for our clients T H E S A M E N E W W O R L D H O R I Z O N S P o i n t s t h a t n e v e r e x p i r e 400K welcome points and Welcome Kit amazon & 7 5 points per dollar spent points per dollar spent on amazon prime with tr
Slide 9: Rural credit is on the rise
rural credit is on the rise private bank in the rural sector Agro expanded portfolio1 Rural loans disbursed in 3Q23 R$ 108 bn R$ 19.5 bn harvest year 8% q/q 17% y/y 104% 2023/2024 vs. 2022/2023 1 Total expanded loan portfolio in the agribusiness chain Robust client services structure 955 Branches an
Slide 10: Operational performance: net income R$4.6 bn
operational performance recovery of market NII R$4.6 bn 10.9% reduction in ALL expenses (-R$1 billion) 3Q23 11.5% y/y 2.3% q/q net income (R$ million) growth in fee and commission income 4,518 (816) 1,128 2 (217) (113) 4,621 119 operating expenses in line with expectations 2Q23 Client NII Market NII
Slide 11: Loan portfolio R$877.5 bn
loan portfolio R$877.5 bn actual (0.1%) 2023 Guidance 3Q23 0.1 % y/y 1.0 % q/q 1% to 5% individuals companies Average daily production non-earmarked portfolio* 0.1% q/q 1.8% q/q (3Q23 vs. 2Q23) Total 14 % LC 3.2% SME 1.1% individuals 26 % companies 11 % *not including cards 11
Slide 12: New loan vintages performance
new loan vintages performance Arrears over 30 days New vintages vs. old vintages 4 months after concession Dec21 vs. May23 | Base 100 Delinquency Ratio 15 to 90 Delinquency Ratio +90 total credit card personal loans vehicles Occupation of new vintages in the loan portfolio 100% 80% 60% 40% 69% of th
Slide 13: Expenses with expanded ALL
expenses with expanded ALL Expanded ALL / Expanded Loan Portfolio % 6.7 R$9.2 bn 4.8 4.5 * 3Q23 26.4% y/y 10.9% q/q 4.3 4.2 3.4 3.3 actual 76% 2023 Guidance 1.7 R$36.5 bn to R$39.5 bn 3Q20 3Q21 3Q22 4Q 1Q23 2Q 3Q * Not considering Large Corporate client. 13
Slide 14: ALL & coverage
ALL & coverage Coverage Ratio - % Total Provision Total Provision - in relation to the portfolio stock 298 310 % 278 9.6 244 235 242 239 9.3 9.4 8.8 201 204 7.8 182 164 158 156 155 98 105 99 R$ million 92 90 88 87 57,741 60,032 60,196 59,137 50,334 Sept22 Dec Mar23 June July Aug Sept Coverage Ratio
Slide 15: NPL creation
NPL creation 1.9% 1.9% 1.7% 1.6% 1.5% 1.9% 1.8% 1.6% 1.2% 1.1% (2) 12.0 12.0 11.6 (1) 12.2 10.9 (3) (4) R$ billion 10.0 10.0 10.0 8.1 7.2 3Q22 4Q 1Q23 2Q 3Q Disclosed NPL Creation Simulated NPL Creation * Disclosed NPL Creation Ratio Simulated NPL Creation Ratio * With a large corporate client 100%
Slide 16: Delinquency
delinquency 15 to 90 days % 0.3 p.p. (q/q) over 90 days % 0.1 p.p. (q/q) Improvement in all on total ratio segments on total ratio 7.2 7.0 6.3 5.5 5.2 5.3 5.1 6.7 6.6 4.9 5.5 5.1 6.2 5.1 (1) (1) 4.9 4.9 5.7 5.6 3.9 3.8 4.6 4.4 4.5 5.3 5.1 3.6 4.5 4.1 4.1 4.3 2.7 3.6 2.7 3.9 2.5 1.4 1.3 2.6 (2) (2) 0
Slide 17: Net interest income
net interest income client NII market NII 9.6% R$ 1.3 bn R$15.9 bn y/y y/y spread 9.1% (3Q23) 3Q23 2.6% y/y Interest Sensitivity – Δ NII 12 months (-100 bps) (R$ Million) 1,747 actual (1.3%) 1,173 1,419 1,308 2023 Guidance 774 865 2% to 6% 3Q20 3Q21 3Q22 1Q23 2Q23 3Q23 17
Slide 18: Fee and commission income
fee and commission income underwriting 139.1% y/y R$0.5 bn 113.8% q/q R$9.1 bn asset management R$0.8 bn 6.6% y/y 8.5% q/q 3Q23 2.9% y/y 4.1% q/q card income 2.2% y/y R$3.7 bn 0.6% q/q actual 0.6% loan operations 16.5% y/y 2023 Guidance R$0.5 bn 0.4% q/q 2% to 6% checking account 9.5% y/y R$1.7 bn 3
Slide 19: Operating expenses
operating expenses 3Q23 personnel expenses administrative expenses R$6.2 bn R$5.7 bn R$13.4 bn 0.2% y/y 0.8% q/q 1.4% y/y 1.7% q/q other revenues / (operating expenses) 3Q23 8.1% y/y 2.7% q/q R$1.6 bn 151.0% y/y 15.5% q/q actual 10.2% 2023 Guidance customer Jan22 to Sept23 service points1 employees
Slide 20: Insurance, pension plans & capitalization bonds
insurance, pension plans & capitalization bonds Income from Insurance growth of R$ million 4,841 actual 25.6% 33% 4,624 3,469 2023 Guidance 21% to 25% in the year 3Q22 2Q23 3Q23 premiums issued, pension contribution net income ROAE and capitalization revenue R$2.4 bn 23.9% R$28.2 bn 57.5% y/y 0.8% q
Slide 21: Basel & interest on equity/dividends
basel & interest on equity/dividends 68% 52% 44% Basel Ratio Tier I 35% 55 bps R$ million 9,240 10,172 8,608 over the quarter 5,548 12.9 % 2Q23 13.4% 3Q23 12M20 12M21 12M22 9M23 Dividends/Interest on Shareholders' Equity - Gross Gross Payout - Accumulated in the Year 21
Slide 22: 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
Slide 23: Com o Bradesco, eu
Com o Bradesco, eu