Banco Bradesco S.A. - 2009 Earnings Results

SAO PAULO, Jan. 28 /PRNewswire-FirstCall/ -- The main figures obtained by Bradesco in fiscal year 2009 are presented below:

1. Net Income in 2009 was R$8.012 billion (an increase of 5.1% from R$7.625 billion in 2008), corresponding to earnings per share of R$2.34 and Return on Average Shareholders' Equity(1) of 21.4%.

2. Net Income was comprised of R$5.289 billion from financial activities, which represented 66% of the total, and R$2.723 billion from insurance, private pension and savings bond operations, which accounted for 34% of the total.

3. Bradesco's market capitalization stood at R$103.192 billion on December 31, 2009, with the preferred shares gaining 65.5%(2) during 2009.

4. Total Assets stood at R$506.223 billion at year-end 2009, an increase of 11.4% from the ending balance in 2008. Return on average assets was 1.7% in the year, compared with 1.9% in 2008.

5. The Total Loan Portfolio(3) stood at R$228.078 billion in December 2009, up by 6.8% from the ending balance in 2008. Operations with individuals totaled R$82.085 billion (up 11.5%), while operations with companies totaled R$145.993 billion (up 4.3%).

6. Total Assets under Management stood at R$702.065 billion, an increase of 17.5% from year-end 2008.

7. Shareholders' Equity was R$41.754 billion in December 2009, increasing by 21.9% from year-end 2008. The Capital Adequacy Ratio (Basel II) stood at 17.8% in December 2009, 14.8% of which under Tier I Capital.

8. In 2009, Interest on Equity and Dividends in the amount of R$4.599 billion were paid and provisioned in fiscal year 2009, of which R$2.718 billion was related to income generated in the period and R$1.881 billion to income from fiscal year 2008.

9. The Efficiency Ratio(4) stood at 41.0% in December 2009 (43.3% in December 2008).

10. Investments in infrastructure, technology and telecommunications amounted to R$3.457 billion, up 29.5% in relation to 2008.

11. Taxes and contributions, including social security, paid or provisioned, calculated based on the main activities of Bradesco Organization in 2009, amounted to R$7.743 billion, equivalent to 96.6% of Net Income. Financial intermediation taxes withheld and paid by the Organization amounted to R$5.802 billion.

12. Banco Bradesco has an extensive distribution network in Brazil, with 6,015 Branches, PAB mini-branches and PAAs (3,454 Branches, 1,190 PABs and 1,371 PAAs). Customers can also make use of the 1,551 PAEs, 30,657 ATMs in the Bradesco Dia&Noite (Day&Night) network, 20,200 Bradesco Expresso service points, 6,067 Banco Postal (Postal Bank) branches, 55 branches of Bradesco Financiamentos and 7,300 ATMs in the Banco24Horas (24HourBank) network.

13. In 2009, employee payroll plus charges and benefits totaled R$6.835 billion. Social benefits provided to the 85,548 employees of the Bradesco Organization(5) and their dependents amounted to R$1.570 billion, while investments in training and development programs totaled R$86.784 million.

14. In October 2009, a Special Shareholders' Meeting was held for the merger of stock in Banco Ibi, transforming it into a wholly owned subsidiary.

15. In December 2009, a merger was made of stock in Bradesco Dental, making it a wholly owned subsidiary of Odontoprev S.A. As a result of the transaction, Bradesco Saude, the controlling shareholder of Bradesco Dental, now holds a 43.5% interest in Odontoprev S.A. The partnership between the two companies should lead to the capture of scale gains resulting from the combination of the best practices in managing claims and in particular from consolidation of the two sales platforms.

16. In November 2009, Bradesco achieved 100% geographic inclusion in Brazil, with a "Presence" in all of the country's 5,564 municipalities.

17. In December 2009, the Central Bank of Brazil approved a R$2.0 billion increase in Bradesco's capital, which went from R$24.5 billion to R$26.5 billion, accompanied by a 10% stock bonus. Since the monthly amount paid per share will be maintained, shareholders will receive a 10% increase in the monthly remuneration.

18. In December 2009, Bradesco inaugurated the world's first floating bank branch, which was installed on a vessel that travels a route on the Solimoes River in the state of Amazonas, and serves a population of 210 thousand.

19. Main Awards and Recognitions received in the fourth quarter of 2009:

- According to a study published by the consulting firm Economatica, Bradesco was the most profitable bank in Latin America and the United States (based on ROA in 9M09);

- Bradesco ranks among the exclusive group of the 12 best companies to work for in Brazil (Great Place to Work / O Estado de S. Paulo newspaper);

- Bradesco is the best bank in people management, according to the annual survey As Melhores na Gestao de Pessoas (sponsored by Valor Carreira/Valor Economico);

- Grupo Bradesco Seguros e Previdencia was the leader among Ibero-American insurance companies in terms of total insurance premiums in Latin America, according to the Mapfre Foundation; and

- Bradesco received the 2009 Epoca Climate Change Award for being a leader in the monitoring and reduction of the environmental impacts caused by its activities (Epoca magazine).

20. Bradesco's sustainability actions are divided 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.

The highlight in this area is Fundacao Bradesco, which for 53 years has been developing a broad social and educational program that operates 40 schools across Brazil. In 2009, Fundacao provided services over 430 thousand times in its various operating segments: School Network, Virtual School, e-learning portal and Digital Inclusion Centers (CIDs). The roughly 50 thousand students enrolled in basic education also receive, at no charge, uniforms, school materials, food and medical and dental care.

21. In January 2010, Bradesco signed a Memorandum of Understanding with the controlling shareholders of Ibi Services S. de R. L. Mexico (Ibi Mexico) and RFS Human Management S. de R. L. for the purpose of acquiring 100% of its capital stock, and in parallel entered into a Partnership Agreement with C&A Mexico S. de R.L. (C&A Mexico) to jointly sell, on an exclusive basis and for a period of 20 years, financial products and services through the stores of the C&A Mexico chain. The transactions are subject to final approval by the respective authorities in Brazil and Mexico.

(1) Excludes the asset valuation adjustments recorded under Shareholders' Equity; (2) Adjusted by dividends/interest on equity received/declared; (3) Includes Sureties and Guarantees, advances of credit cards receivables and loan assignments (receivables-backed investment funds and mortgage-backed receivables); (4) Last 12 months; and (5) Considers 476 employees from Banco Ibi.

The Quarterly Report and the Supplementary Information can be found on Bradesco's Investor relations website at www.bradesco.com.br/ir.

SOURCE Banco Bradesco S.A.