Banco Bradesco 1S17 Results

SAO PAULO, July 27, 2017 /PRNewswire/ -- The main figures reported by Bradesco in the first semester of 2017, with emphasis on the consolidation, from July 1, 2016, of HSBC Bank Brasil S.A. and its subsidiaries (HSBC Brasil):

1. Adjusted Net Income for the first semester of 2017 stood at R$9.352 billion (a 13.0% increase compared to the Adjusted Net Income of R$8.274 billion recorded in the first semester of 2016), corresponding to earnings per share of R$2.99 and return on Average Adjusted Shareholders' Equity of 18.2%.

2. As for the source, the Adjusted Net Income is composed of R$6.708 billion from financial activities, representing 71.7% of the total, and of R$2.644 billion from insurance, pension plans and capitalization bond operations, which together account for 28.3%.

3. In June 2017, Bradesco's market capitalization stood at R$169.618 billion, showing a growth of 17.5% over June 2016.

4. Total Assets, in June 2017, stood at R$1.291 trillion, an increase of 16.8% over June 2016. The return on Average Total Assets was 1.4%.

5. In June 2017, the Expanded Loan Portfolio reached R$493.566 billion, a 10.3% increase over June 2016. Operations with individuals totaled R$172.045 billion (an increase of 15.5% over June 2016), while operations with companies totaled R$321.521 billion (a 7.7% increase over June 2016).

6. Assets under Management stood at R$1.918 trillion, a 20.7% increase over June 2016.

7. Shareholders' Equity totaled R$106.807 billion in June 2017, 10.8% higher than in June 2016. The Basel III Ratio, based on the Prudential Conglomerate stood at 16.7%, 12.5% of which is Tier I Capital.

8. A total of R$2.810 billion was paid and provisioned to shareholders as Interest on Shareholders' Equity for the profit generated in the first semester of 2017, R$1.723 billion of which was paid in monthly and interim installments, and R$1.087 billion was provisioned.

9. The Interest-Earning Portion of the NII reached R$31.678 billion in the first semester of 2017, a 7.3% growth compared to the first semester of 2016.

10. The 90-day Delinquency Ratio stood at 4.9% in the end of June 2017, a decrease of 0.7 p.p. compared to March 2017.

11. The Efficiency Ratio (ER) in June 2017 was 41.5% (37.4% in June 2016), while the "risk-adjusted" efficiency ratio stood at 53.7% (48.1% in June 2016).

12. Insurance Written Premiums, Pension Plan Contributions and Capitalization Bond Income totaled R$36.460 billion in the first semester of 2017, up 12.4% when compared with the same period of 2016. Technical provisions stood at R$233.640 billion, an increase of 22.5% compared with the balance in June 2016.

13. Investments in infrastructure, information technology and telecommunications amounted to R$2.786 billion in the first semester of 2017.

14. Taxes and contributions paid or recorded in provision, including social security, totaled R$17.554 billion in the first semester of 2017, of which R$7.875 billion was related to taxes withheld and collected from third parties, and R$9.679 billion, was calculated based on activities developed by the Bradesco Organization, equivalent to 103.5% of the Adjusted Net Income.

15. Bradesco has an extensive Customer Service Network in Brazil, with 5,068 Branches and 3,921 Customer Service Points (PAs). The following are also available to Bradesco clients: 994 ATMs located on company premises (PAEs), 38,596 Bradesco Expresso customer service points, 36,148 Bradesco ATMs, and 20,875 Banco24Horas Network ATMs.

16. Payroll, plus charges and benefits totaled R$8.564 billion in the first semester of 2017. Social benefits provided to all 105,143 employees of the Bradesco Organization and their dependents amounted to R$2.280 billion, while investments in education, training and development programs totaled R$76.489 million.

17. Major Awards and Acknowledgments in the period:

• It was elected as the "Most Valuable Brazilian Brand" for the sixth consecutive year, and ranked second in the overall ranking (WPP Consulting, Kantar Vermeer, in partnership with IstoÉ Dinheiro Magazine);

• It reached the first place in the financial industry and ranked fifth in the overall ranking in the third edition of the "Valor Inovação Brasil" yearbook (Valor Econômico Newspaper / Network Pwc Consulting Firm);

• It led the "Best Retail Bank" ranking in the first edition of the "Estadão Finanças Mais" yearbook. Grupo Bradesco Seguros also appeared in the categories "Pension Plan" and "Health" (O Estado de S.Paulo newspaper, in partnership with Austin Rating);

• It enjoyed pride of place in the "efinance 2017" award, in the following categories: CIO of the Year, Back Office, Project Management, BYOD Security, Business Integration, IT Governance, Foreign Currency in ATMs and Credit App. Bradesco Seguros was listed in the following categories: Infrastructure Management, Contact Center and Health App (Editora Executivos Financeiros);

• It enjoyed pride of place in the "Top Management 2017" (ValorInveste Magazine, of the Valor Econômico Newspaper);

• Grupo Bradesco Seguros was, for another year, highlighted in the "Valor Financeiro – Seguros, Previdência e Capitalização" yearbook (Valor Econômico Newspaper);

• Bradesco BBI was awarded the "Best Investment Bank in Brazil" for the third consecutive time in the Awards for Excellence 2017 edition (Euromoney Magazine);

• Bradesco Cartões was featured in the "XVIII Modern Consumer Award for Customer Service Excellence" for the ninth time, as the winner with Amex cards. (Consumidor Moderno Magazine, in partnership with Centro de Inteligência Padrão and On You); and

• BRAM won the "Top 10 Overall Broadcast Projections" ranking of the first quarter of 2017, according to survey of AE Dados from Agência Estado.

Bradesco Organization is fully committed to the socio-economic development of the country. We set our business guidelines and strategies with a view of incorporating the best sustainability practices, considering the context and the potential of each region, thus contributing to the generation of shared value in the long term. To reinforce this position, we emphasized adherence to globally recognized business initiatives, such as: Global Compact, Equator Principles, CDP (Carbon Disclosure Program), Principles for Responsible Investment (PRI), GHG Protocol Program (Brazilian Greenhouse Gas Emissions Program) and Companies for Climate Change (EPC). The Board of Directors, through the Sustainability Committee, monitors the sustainability deliberations. Excellence in business management is recognized by the main indexes of Sustainability, such as the Dow Jones Sustainability Index (DJSI) – "Emerging Markets", of the New York Stock Exchange, the Corporate Sustainability Index (ISE), and the Carbon Efficient Index (ICO2), both from B3.

With a broad social and educational program put in place 60 years ago, Fundação Bradesco operates 40 schools across Brazil. In 2017, a budget of R$625.944 million will benefit approximately 104,228 students enrolled in its schools at the following levels: Basic Education (from Kindergarten to High School and Higher Secondary Technical-Professional Education), youth and adult education; and preliminary and continued vocational training, focused on creating jobs and income. In addition to the guarantee of free, quality education, the students enrolled in the Basic Education system, numbering over 43 thousand, also receive uniforms, school supplies, meals, and medical and dental assistance. Fundação also expects to benefit 630 thousand students via distance learning (EaD), through its e- Learning portal "Escola Virtual" (Virtual School), where students can complete at least one of the courses offered in its schedule. Another 15,040 students are taking part in projects and actions in partnership with the Program.

CONTACT: Eduardo Braga Potério +011-55-11-2194-0924, eduardo.b.poterio@bradesco.com.br or Carlos Tsuyoshi Yamashita, +011-55-11-2194-0920, carlos.yamashita@bradesco.com.br, both from Banco Bradesco.

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SOURCE Banco Bradesco S.A.