Banco Bradesco (BM&FBOVESPA: BBDC3, BBDC4; NYSE: BBD and Latibex: XBBDC) Announces its Results for 2011

SAO PAULO, Feb. 1, 2012 /PRNewswire-Asia/ -- The main figures obtained by Bradesco in 2011 are presented below:

1. Adjusted Net Income(1) for the year was R$11.198 billion (a 14.2% increase compared to the R$9.804 billion recorded in the same period last year), corresponding to earnings per share of R$2.93 and Return on Average Shareholders' Equity(2) of 21.3%.

2. Adjusted Net Income was composed of R$7.997 billion from financial activities, representing 71.4% of the total, and R$3.201 billion from insurance, pension plan and savings bond operations, which accounted for 28.6%.

3. On December 31, 2011, Bradesco's market capitalization stood at R$106.971 billion(3).

4. Total Assets stood at R$761.533 billion in December 2011, a 19.5% increase over the same period in 2010. Return on Average Assets was 1.6%.

5. The Expanded Loan Portfolio(4) stood at R$345.724 billion in December 2011, up 17.1% from the same period in 2010. Operations with individuals totaled R$108.671 billion (a 10.6% gain), while operations with companies totaled R$237.053 billion (up 20.4%).

6. Total Assets under Management stood at R$1.020 trillion, up 16.9% on December 2010.

7. Shareholders' Equity stood at R$55.582 billion in December 2011, up 15.7% on December 2010. The Capital Adequacy Ratio stood at 15.1% in December 2011, 12.4% of which fell under Tier I Capital.

8. Interest on Shareholders' Equity and Dividends were paid and recorded in provision to shareholders for income in 2011 in the amount of R$3.740 billion, R$1.279 billion of which was paid as monthly and interim dividends and R$2.461 billion was recorded in provision.

9. Financial Margin reached R$39.321 billion, up 19.0% in comparison with 2010.

10. The Delinquency Ratio over 90 days stood at 3.9% on December 31, 2011, a 0.3 p.p. increase over December 31, 2010 (3.6%).

11. The Efficiency Ratio(5) stood at 43.0% in December 2011 (42.7% in December 2010) and the "adjusted-to-risk" ratio stood at 53.0% (52.4% in December 2010).

12. Insurance Written Premiums, Pension Plan Contributions and Savings Bond Income totaled R$37.693 billion in 2011, up by 21.3% over the same period in 2010. Technical reserves stood at R$103.653 billion, up 18.9% on December 2010.

13. Investments in infrastructure, information technology and telecommunications amounted to R$4.328 billion in 2011, a 10.4% increase on the previous year.

14. Taxes and contributions, including social security, paid or recorded in provision, amounted to R$19.159 billion in 2011, R$9.127 billion of which referred to taxes withheld and collected from third parties and R$10.032 billion from Bradesco Organization activities, equivalent to 89.6% of Adjusted Net Income(1).

15. Continuing its strategy for organic growth, Bradesco launched 1,009 branches in the last twelve months, adding more than 9 thousand new employees.

16. Bradesco has an extensive customer service network in Brazil, comprising 7,586 service points (4,634 branches, 1,347 PABs - Banking Service Branches and 1,605 PAAs - Advanced Service Branches). Customers can also use 1,477 PAEs – ATMs (Automatic Teller Machines) in companies, 34,839 Bradesco Expresso service points, 34,516 Bradesco Dia & Noite ATMs and 12,455 ATMs shared with other banks(6).

17. Payroll, plus charges and benefits, totaled R$9.298 billion. Social benefits provided to the 104,684 employees of the Bradesco Organization and their dependents amounted to R$2.278 billion, while investments in training and development programs totaled R$161.495 million.

18. On January 5, 2012, Bradesco became a signatory of the International Statement of Commitment by Financial Institutions on the Environment and Sustainable Development, formally marking its entrance into the United Nations Environment Programme – Finance Initiative (UNEP FI), a United Nations (UN) program for financial institutions committed to sustainable finances.

19. On January 16, 2012, Bradesco received authorization to increase the foreign interest in its common capital, from 14% to 30%, allowing the Bank to create an ADR (American Depositary Receipt) Program tied to common shares, in an effort to increase the liquidity and value thereof. The ADR program is currently being submitted for approval by authorities.

20. Main Awards and Acknowledgements in the period:

• Outstanding position in the ranking of the largest banks in the world, by market capitalization, placing 10th (Bloomberg);
• Largest private corporate group in Brazil ("Large Groups" annual publication – Valor Economico newspaper);
• One of the best companies to work for, according to the "Largest among the Best Companies of 2011" list (Great Place to Work® Institute, in partnership with O Estado de Sao Paulo newspaper);
• Best company in personnel management, in the "More than 10,000 employees" category (Valor Carreira – Valor Economico newspaper);
• For the 7th consecutive time, Bradesco was included in the Corporate Sustainability Index (ISE) portfolio of the Sao Paulo Securities, Commodities and Futures Exchange (BM&FBovespa);
• For the 5th consecutive year, the Bradesco Brand was the most valuable brand in Brazil (Superbrands – Brand Finance);
• Grupo Bradesco de Seguros won the "Professionals of the Year" award in the "National Campaign" category with the Vai Que campaign (Rede Globo); and
• For the 10th consecutive year, Bradesco Seguros won the "Folha Top of Mind" award in the Insurance category (Datafolha).

21. With regards to sustainability, Bradesco divides its actions into three pillars: (i) Sustainable Finances, with a focus on banking inclusion, social and environmental variables for loan approvals and offering social and environmental products; (ii) Responsible Management, focused on valuing professionals, improving the workplace and adopting eco-efficient practices; and (iii) Social and Environmental Investments, focused on education, the environment, culture and sports. In this area, we point out Fundacao Bradesco, which has a 55-year history of extensive social and educational work, with 40 schools in Brazil. In 2011, 112,081 students benefitted from its schools, in Basic Education (from Kindergarten to High School and Vocational Training - High School Level), Education for Youth and Adults; and Preliminary and Continuing Qualification focused on the creation of jobs and generation of income. The nearly 50 thousand students in Basic Education are guaranteed free, quality education, uniforms, school supplies, meals and medical and dental assistance. Fundacao Bradesco also aided another 382,329 students through its distance learning programs, found at its e-learning portal "Virtual School". These students completed at least one of the many courses offered by the Virtual School. Furthermore, another 134,764 people benefitted from projects and actions in partnerships with Digital Inclusion Centers (CIDs), the Educa+Acao Program and Technology courses (Educar e Aprender – Teach and Learn). To support these social commitments, Fundacao Bradesco invested a total of R$291.892 million in its educational activities and will invest an estimated total of R$385.473 million in 2012.

(1)     According to non-recurring events described on page 8 of this Report on Economic and Financial Analysis;

(2)     Excludes mark-to-market effect of available-for-sale securities recorded under Shareholders' Equity;

(3)     R$117.4 billion considering the closing price of preferred shares (most traded share);

(4)     Includes sureties and guarantees, letters of credit, advances of credit card receivables, co-obligation in loan assignment (receivables-backed investment funds and mortgage-backed receivables), co-obligation in rural loan assignment, and operations bearing credit risk – commercial portfolio, which includes debentures and promissory notes;

(5)     In the last 12 months; and

(6)     Banco24Horas ATMs + ATMs shared among Bradesco, Banco do Brasil and Banco Santander.