Banco Bradesco Sa · BMFBOVESPA:BBDC3
Banco Bradesco Sa — Bank Bradesco — Q3 2002 Earnings Presentation
40 slides from Banco Bradesco Sa's earnings presentation, Nov 1, 2002
Slide 1: Market Indicators (%)
(*) Consolidated prior to the acquisition of Mercantil, BEA and Cidade, and including the loan portfolio acquired from Ford. 9. Market Indicators (%)
Slide 2: Analysis of the Consolidated Statement of Income: Credit and Leasing Operations
ANALYSIS OF THE CONSOI LIDATED STATEMENT OF INCOME FOR THE THIRD QUARTER 2002 - IN MILLIONS OF REAIS CREDIT AND LEASING OPERATIONS 07.07 fo 30.09 ‘2002 QUARTER 2002 [ [_® VARIATION gaqtR VARIATION [asa 3 apes | 7472 2 This Increase mainly reflects: (f) the increase | This increase reflects exchange
Slide 3: Securities and Financial Derivative Instruments
SECURITIES AND FINANCIAL DERIVATIVE INSTRUMENTS QUARTER 2002 Ti.01 fo S009 2002 207 % nd rd % VARIATION variation | 7 GTR. | 3” QTR 5911 9,793 64.7 2,627 5,505 109.6 This _vailalion resus many from —(h] This growth ate was manly denved Wom addtional funds derived from the increase in funding, partic
Slide 4: Income from Foreign Exchange Transactions
INCOME FROM FOREIGN EXCHANGE TRANSACTIONS QUARTER 2002 1.01 20.05 2002 207 % nd rd % VARIATION variation | 2 QTR 2 QTR: Ta ase 2a Ta ara as Growth was mainly derived trom: (i) Growth was mainly derived from exchange exchange variance for the period, and (ii) acquisitions in 1HO2, This account should
Slide 5: Compulsory Deposits
COMPULSORY DEPOSITS 1.01 S009 2002 QUARTER 20 207 vaso a2 Hair gi qre. | % VARIATION [63 75 This variation was mainly a reSuE OF th a increase in average volume fram acquisitions in 1HO2, (ii) the increase in the campulsary addtional rate of 5%; and (ii) the increase in the reference rate (TR), whic
Slide 6: Deposits Received under Security Repurchase Agreements
DEPOSITS RECEIVED UNDER SECURIT Y REPURCHASE AGREEMENTS 1.01 b S009 2002 QUARTER 2 O07 % VARIATION, REE 70,995) 58.7 oo Pio. | sare. | * VARIATION This growth rafe mainly reflects: () crease in the average volume of funds, (ii) average interest rate increases during the perioct anc (il) exchange var
Slide 7: Expenses for Borrowings and Onlendings
EXPENSES FOR BORROWINGS AND ONLENDINGS 1.01 S009 QUARTER 2 2002 00 % nd rd % VARIATION variation | 2 QTR. | 37 QTR iE [soe e7.0 2290 e409 [1362 This increase reflects for the most pat (| This crease was mainly generated by exchange variance impact during the period, | exchange vanation increases dur
Slide 8: Financial Margin
FINANCIAL MARGIN QUARTER 2002 1.01 S009 2002 Hair gi qre. | % VARIATION | vaso [se57 | 38 68 The increase im margin many "aE exchange variation increases as a result of permanent investments abroad. The annualized financial margin on average total assets grew from 9.9% in 2001 to 10.8% in 2002. Adju
Slide 9: Allowance for Loan Losses
ALLOWANCE FOR LOAN LOSSES QUARTER 20 1.01 S009 2002 | vaso a2 Hair gi qre. | % VARIATION [22 ! EEN The increase in this eae was arora () an increase in the average portfolio halance, mainty trom aciustions in 102; and (i) an increase in customer defaults following the economic slowdewn, and (ill) ad
Slide 10: Commissions and Fees
COMMISSIONS AND FEES generated by : (i) the accuisition of Mercantil, BEA and Cidade — approximately RS 74; (i credit cards - R$ 63, (ill) crecit operations - R§ 47, and (W) which were offset by the decrease in income tram managed funds of RS 64, a5 a resut of migration to deposits TiO SS CUARTER 20
Slide 11: Retained Insurance Premiums, Private Pension Plans and Savings Bonds
RETAINED INSURANCE PREMIUMS, PRIVATE PENSION PLANS AND SAVINGS BONDS 1.07 fo 30.09 QUARTER 2002 OT 2002 % nd rd % VARIATION variation | 2~ TR | SG (a A [aes —8 This growth was mainly derived fram: () the improved performance of insurance and private pension plan products, especially VGBL, introduced
Slide 12: Variation in Technical Reserves for Insurance, Private Pension Plans and Savings Bonds
VARIATION IN TECHNICAL RESERVES FOR INSURANCE, PRIVATE PENSION PLANS AND SAVINGS BONDS 01.01 p a009 2002 QUARTER 200: son The increase in the variation of ara SiaRS reflects: ()) the growth in income on insurance and private pension plan products, such as VGBL; and (il) appropriation of interest and
Slide 13: Claims — Insurance Operations
CLAIMS — INSURANCE OPERATIONS QUARTER 2002 1.01 b S009 O07 2002 Mote. | star. | % VARIATION % VARIATION Gan | Gera) | 7 697) wa) 26 The variation was mainly generated by increased insurance sales, even though the ratia of claims/premiums decreased in comparison with the same period of the prior The
Slide 14: Savings Bond Redemptions
SAVINGS BOND REDEMPTIONS QUARTER 20 1.01 S009 207 2002 a2 Hair gi qre. | % VARIATION % | VARIATION, 39 cE) 7 | Sa) This variation was due to whe increase in single and monthly payment bonds maturing during the period (sq) 173) 5. The variation was generated by a greater concentration of single and m
Slide 15: Insurance and Pension Plan Selling Expenses
INSURANCE AND PENSION PLAN SELLING EXPENSES O7.O1 wm 3009 QUARTER 2002 2002 aie. aqtr. | % VARIATION [88 Cen | (ey | EM This variation was lower than the increase m| The Variation was mainly derived trom income on premiums, as a result for the decrease in ‘ammission Elementary and Health lines. the
Slide 16: Expenses with Pension Plan Benefits and Redemptions
EXPENSES WITH PENSION PLAN BENEFITS AND REDEMPTIONS 1.01 b S009 O07 2002 QUARTER 2 00 ir] rd % VARIATION vaso PoAlRe || STR: Toe ay [aay Tie vataian Tacs on neeme ih He] Te raion ws SP payment of pension plan redemptions as a result of increased pension plan redemptions as a result of specific PGBL
Slide 17: Personnel Expenses
PERSONNEL EXPENSES 1.01 S009 2002 QUARTER 20 % VARIATION. 175 a2 Pig. | sare. | * VARIATION 7929) | a This variation was mainly generated by. (0) salary increases as a result of the collective labor agreement of 5.5% in September 2001 plus R$ 133 comprising one month of appropriation proportional ta
Slide 18: Other Administrative Expenses
OTHER ADMINISTRATIVE EXPENSES Oot 8009 QUARTER 2002 2002 % ric rd % VARIATION variation | 2 QTR 2 Q1R: 540. 2917) | 14.8 Com) | 1,063) | al Inerease) Fetes, CUMIOTeR set/e| Tel nereaseiWm many Genera By Ce rk expansion especially: (i) the effect of | increase in input costs including. ()) publicity
Slide 19: Tax Expenses
TAX EXPENSES 1.01 S009 QUARTER 2002 2002 207 Pom. | sor % VARIATION % | VARIATION. La [ SBT) (30) (20) 786 70) This growth rate mainly reflects increases in| This variation reflects the decrease im expenses for PIS/COFINS, consistent with | expenses for PIS/COFINS, consistent with taxable incom e gr
Slide 20: Equity in the Earnings of Subsidiary and Associated Companies
EQUITY IN THE EARNINGS OF SUBSIDIARY AND ASSOCIATED COMPANIES: QUARTER 2002 TiO SS 207 202 % nd rd % VARIATION variation | 2 OTR QTR: 16 mn 700.0 5 TAD This inereaserenecis the improved] This vavlalion was generaied by wealer performance of the associated companies accounted for under the equity met
Slide 21: Other Operating Income (Expenses)
OTHER OPERATING INCOME (EXPENSES) QUARTER 20 1.01 S009 207 2002 % VARIATION, a2 Hair gi qre. | % VARIATION ima ! [3325 (G27 (514) 278.0 This variation is mainly derived fram: () he provision for exchange variance recorded in the amount of R$ 948; (ii) expenses for amortization of goodwill - R$ 66, r
Slide 22: Non-Operating Income (Expenses)
NON-OPERATING INCOME (EXPENSES) 1.01 b S009 O07 2002 QUARTER 2 % VARIATION [308 75.0) oo Hair gi qre. | % VARIATION 8) This variation Is mainly due to ()) results determined from the auction of bank branches - R$ 140, and (ji) the sale of Prudential Bradesco Seguros - RS 26. a The variation for the
Slide 23: Income Tax and Social Contribution
INCOME TAX AND SOCIAL CONTRIBUTION QUARTER 2002 1.01 S009 2002 207 % nd rd % VARIATION variation | 2 QTR. | 37 QTR way eg @ a ___ 2548 The varation im income tax and social) The quarterly vaniaion was generaled manly contribution expense reflects tax charges on income adjusted by permanent and_ excl
Slide 24: Consolidated Equity Analysis: Funds Available
CONSOLIDATED EQUITY ANAL YSIS FOR THE THIRD QUARTER 2002 - IN MILLIONS OF REAIS FUNDS AVAILABLE O7.O1 to 30.05 QUARTER 2002 [2002 | % VARIATION | oar. | 32aTR. _% VARIATION [2548 | 3 Bist [2,548 in this accourt balance reflects | This variation in the account balance for the acquisitions in 1HO2 (Me
Slide 25: Short-Term Interbank Investments
SHORT-TERM INTERBANK INVESTMENTS: O7.O1 3009 QUARTER 2002 [202 [% VARIATION | 22 QTR a2qTR, | % VARIATION [72380 72,380 | This variation is many derived trom the increase in deposits received under security repurchase agreements, principally in the third-party portfolio (402 This variation is manly
Slide 26: Securities and Financial Derivative Instruments
SECURITIES AND FINANCIAL DERIVATIVE INSTRUMENTS period reflects’ (i) acquisitions in 1HO2 (Mercantil, BEA and Cidade) of R$ 1,821; and (i) additional funds derived trom’ thi increase in funding, particularly technical reserves, mitigated by. (I) redemptions during the period; and (il) migration to s
Slide 27: Interbank and Interdepartmental Accounts
INTERBANK AND INTERDEPARTMENTAL ACCOUNTS 1.01 b S009 2002 QUARTER 2002 flatr. | sfaTr. | % VARIATION [[@ VARIATION 5 This variation mainly reflects the increase in compulsory Brazilian Central Bank deposits a8 a result of (i) growth in the volume of deposts for the period (i) the increase in the com
Slide 28: Credit and Leasing Operations
CREDIT AND LEASING OPERATIONS QUARTER 2002 1.01 b S009 2002 [% VARIATION @iatr. | sfaTr. | % VARIATION were | 63,599 | zy E The growth rate during the period reflects Tor the most part acquisitions in 1H02 (Mercantil BEA and Cidade) of R$ 4,820, together with exchange variation for the periad on U.S
Slide 29: Allowance for Loan Losses
ALLOWANCE FOR LOAN LOSSES O7.O1 3009 | QUARTER 2002 [202 [%VARIATION| sare. | 3#aTR. | % VARIATION [sete | 42 52 aaa | a2 Despite the nominal mcrease of 34.2%, |Despite the nominal mcrease of 8.2%, hy the increase in customer | generated increase in customer losses on total credit operations increas
Slide 30: Other Receivables and Assets
OTHER RECEIVABLES AND ASSETS: 1.01 b S009 2002 QUARTER 2 [[@ VARIATION az #2 QTR afaTr. | % VARIATION 75,628 | zi a0 This variation is many derived trom the increase in foreign exchange portfalio volume and acquistions in 1HO2 (Mercantil, BEA and Cidade) as well as exchange variance for the period.
Slide 31: Permanent Assets
PERMANENT ASSETS 1.01 b S009 L202 | ERATION QUARTER [se | 2002 Ham L sfam. | % ERATION The growth rate Tor the period wes: mast [se | generated by: ()) acquisitions in 1HO2 (Mercantil, BEA and Cidade), and (ir Consolidation of the property and equipment of these banks. (4.0) The vara Was generated m
Slide 32: Deposits
QUARTER 2002 1.01 s009 L202 | EVEATGN 2007 Sam, | sfamr. | % SAERTON 40513 | 65,871 aes | 65.871 | The positive Variation far the carer Ba Th iorease Wie acc aur MAGE TET (). acquisitions in 1H02 (Mercantil, BEA and Cidade) of R$ 4,579, (i) the increase in the number of customers; and (il) migration
Slide 33: Deposits Received under Security Repurchase Agreements
DEPOSITS RECEIVED UNDER SECURITY REPURCHASE AGREEMENTS period was generated by the migration of Tesources to other sources af funding Oot 8009 QUARTER 2002 2007 l 2002 | % VARIATION | 2 QTR s£QTR. | % VARIATION 3; [7230 | 6 5) 3695 7230 | (168) The decrease in this account balance for the | The decr
Slide 34: Funds from Acceptance and Issuance of Securities
FUNDS FROMACCEPTANCE AND ISSUANCE OF SECURITIES QUARTER 2002 1.07 fo 30.09 2002 oT [2 VARIATION oT L_ s#a1r EXERTION [5839] 5044 5539 158 The posiive variation reflects for the most part: (i) exchange variation on securities issued abroad, and (i) acquisitions in 1H02 (Mercantil, BEA and Cidade) of
Slide 35: Interbank and Interdepartmental Accounts
INTERBANK AND INTERDEPARTMENTAL ACCOUNTS 7.01 3009 QUARTER 2002 mor [02 | EXAPATON #am_|_ sate. | % SARTO Tia | 1886 | 366 | 886 | This variation 1s mainly derived ram the increase in the volume of collections and maney orders for the period, as a result of customer base and service network expansio
Slide 36: Borrowings and Onlendings
BORROWINGS AND ONLENDINGS 1.01 b S009 QUARTER 2002 moT [2002 ‘| % VARIATION #2 QTR afamr. | % VARIATION Teer? | 19,855 | 137 5 This growth rate mainly reflects exchange variance for the periad, affecting for the most part foreign borrowings, all operations of which are US. dollarindexed, as well as
Slide 37: Other Liabilities and Financial Derivative Instruments
OTHER LIABILITIES AND FINANCIAL DERIVATIVE INSTRUMENTS TT p30 QUARTER 2 i] mot [| 2002 __—| % VARIATION 10 38 QTR | -XARRTION Tao | 28,503 | 75,460 26,503 | This variation was mainly generated by the increase in foreign exchange portfolio volume, following increased market share: (i) from acquisitio
Slide 38: Technical Provisions for Insurance, Savings Bonds and Private Pension Plans
TECHNICAL PROVISIONS FOR INSURANCE, SAVINGS BONDS AND PRIVATE PENSION PLANS QUARTER 2002 O7.O1 3009 DoT [| 2002 [%VARIATION| #aTr, | s¥aTr. | % SARAH z 6,600 | 20 | 16,600 | This variation renects the ongoing] This increase was mainly qaeaed by The strengthening of provisions, as a result of the inc
Slide 39: Minority Interest in Subsidiaries
MINORITY INTEREST IN SUBSIDIARIES 1.01 b S009 2002 QUARTER zor | on [ [[@ VARIATION l 2002 a2QTR, | % VARIATION 2 ! Te 27 4 Growth for the period was mostly generated hy acquisitions in 1HO2 (Mercantil, BEA and Cldaae) the fal stonleot efietybsnet hed et by the sale of our stackholding in (48 38 in
Slide 40: Signature and Forward-Looking Statements
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: November 1 st , 2002 BANCO BRADESCO S.A. By: / S / Luiz Carlos Trabuco Cappi Luiz Carlos Trabuco C