Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____
1st Quarter 2003 Results
May 5, 2003
PRESS RELEASE
Disclosure of 1st Quarter Results for 2003 compared
to 1st Quarter Results of 2002
Banco Bradesco, (BOVESPA: BBDC4 and BBDC3; Latibex: XBBDC; NYSE: BBD), Brazil’s
largest Private Group in revenues for the fourth year in a row and Brazil’s
largest Bank in equity, according to the 2002 issue of Exame Magazine’s Best and
Biggest Guide, announced today its results for the first three months of 2003
(1Q03). The Bank reported net income of R$ 508 million, a 19.4% increase over
results for the same quarter in 2002 (1Q02) of R$ 425 million and earnings per
thousand shares of R$ 0.33, an increase of 10.0% as compared to earnings for
1Q02 of R$ 0.30. Annualized return on stockholders’ equity was 18.50% and on
Total Assets 1.41%, compared with 18.27% and 1.43%, respectively for 1Q02.
The quarter was marked by the following important events:
• On January 10, 2003, the signing of a commitment to transfer the share
control of Banco Bilbao Vizcaya Argentaria Brasil S.A. and subsidiaries to
Bradesco.
• On January 27, 2003, the signing with Banco J.P. Morgan S.A., of an
“Agreement for the Transfer of Rights and Obligations and Other Accords”
regarding the acquisition of the activities of Administration and
Management of the Securities and Investment Fund Portfolios managed by
JPMorgan Fleming Asset Management.
• In March, a 20% increase in monthly interest attributed to own capital to
be paid as from April 2003
• On March 31, 2003, the Stockholders’ Meeting held to approve the
incorporation of the shares of the minority stockholders of Banco Mercantil
de São Paulo S.A.
The following financial and operating information, except where otherwise
indicated, is presented on a consolidated basis and in reais, in accordance with
Brazilian corporate legislation. The full report can be downloaded directly from
the Investor Relations page on the Bank’s website (www.bradesco.com.br).
1. Highlights for the first quarter of 2003
• Net Income was R$ 508 million for 1Q03, a 19.4% increase as compared to net
income for 1Q02.
- Financial Activity results were R$ 332 million, a 39.5% increase over
results for 1Q02.
- The Insurance Group (Insurance, Private Pension Plan and Savings Bond
companies) contributed with results of R$ 156 million, a 6.0% decrease
in comparison with results for 1Q02.
- The results of other activities totaled R$ 20 million.
• Income from financial intermediation totaled R$ 2,628 million,
corresponding to 51.8% increase compared with 1Q02.
• The financial margin was R$ 3,436 million, a growth of 45.3% as compared to
1Q02.
• Operating Income was R$ 1,140 million, 84.8% higher than in 1Q02.
• Consolidated Assets amounted to R$ 145,000 million, a growth of 21.6% as
compared to 1Q02.
• The Basel capital adequacy ratio was 19.7% on a consolidated financial
basis and 17.1% on a total consolidated basis, compared to 15.2% and 13.6%
respectively, in 1Q02.
• The permanent assets to stockholders' equity ratio was 42.5% on a
consolidated financial basis and 31.3% on a total consolidated basis,
compared to 64.2% and 50.8%, respectively in 1Q02.
2. Analysis of Consolidated Results
2.1 Income from Lending and Trading activities
Income from Credit and Leasing Operations totaled R$ 3,031 million, an increase
of 20.0% as compared to 1Q02. This growth mainly reflects: (i) the increase in
average interest rates for 1Q03; and (ii) the increase in the average volume of
the credit portfolio for the period, as a result of acquisitions in 1H02,
partially offset by negative exchange variation of 5.1% in 1Q03.
Results of Securities and Derivative Financial Instrument Operations amounted to
R$ 3,513 million, an increase of 122.6% compared to 1Q02. The variation was
mainly due to: (i) additional resources from increased funding in 1Q03,
especially technical reserves; and (ii) increase in average interest rates in
1Q03.
Results of Foreign Exchange Transactions totaled R$ 99 million, 68.0% lower than
in 1Q02. This account should be analyzed net of foreign funding expenses used to
finance import/export operations as described in Note 14 to the Financial
Statements. Net of these deductions, results would be R$ 59 million in 1Q02 and
R$ 72 million in 1Q03.
2.2 Expenses for Lending and Trading Activities
Market Funding Expenses totaled R$ 3,424 million, an increase of 92.7% compared
to 1Q02. This growth mainly reflects: (i) the increase in average interest rates
for 1Q03; and (ii) the increase in the average volume of funds obtained for the
period, partially offset by negative exchange variation of 5.1% in 1Q03,
particularly impacting securities issued abroad.
Expenses for Borrowings and Onlendings totaled R$ 141 million, a decrease of
57.3% compared to 1Q02. The variation was mainly due to : (i) negative exchange
variation of 5.1% in 1Q03; (ii) increase in average interest rates for the
period; and to a lesser extent: (iii) increase in the average volume of
borrowings and onlendings.
Provision for Loan Losses totaled R$ 808 million, 27.6% more than in 1Q02.
Excluding the additional provisions of R$ 11 million and R$ 298 million recorded
in 1Q02 and 1Q03, respectively, the decrease of R$ 112 million in this expense
reflects the Bank’s selective credit granting strategy and economic scenario
improvements.
2.3 Financial Margin totaled R$ 3,436 million, 45.3% higher than in 1Q02. The
increased margin mainly reflects: (i) average interest rate increases for the
period , partially offset by: (ii) negative exchange variation in 1Q03, on
permanent investments abroad. The annualized financial margin on total average
assets increased from 8.8% in 1Q02 to 9.9% in 1Q03. Adjusting the additional
provision for market risk fluctuation recorded/reversed for these periods,
annualized financial margin would be 8.9% and 10.4%, respectively.
2.4 Other Operating Income and Expenses
Income on Commissions and Fees totaled R$ 998 million in 1Q03, a 15.9% increase
compared with 1Q02. The growth rate reflects increased revenue from: (i) cards -
R$ 55 million; (ii) checking accounts - R$ 39 million, mainly maintenance
charges; (iii) credit operations - R$ 23 million, mainly from contracting and
opening of credit; (iv) collection - R$ 11 million; offset by (v) decreased
revenue from managed funds - R$ 14 million.
Income from Insurance Premiums, Private Pension Plans and Savings Bonds totaled
R$ 2,770 million in 1Q03, a 42.1% increase compared to 1Q02, mainly derived from
(i) an increase in revenue from VGBL life insurance premiums introduced in March
2002; and (ii) an increase in premiums from the Auto and Health portfolios.
Variations in Technical Reserves for Insurance, Pension Plans and Savings Bonds
totaled R$ 1,043 million in 1Q03, an increase of 309.0% over 1Q02. This
variation was due to growth in technical reserves as a result of increased
revenue from VGBL premiums.
Insurance Claims were R$ 1,019 million, an 18.2% growth rate compared to 1Q02,
mainly as a result of: (i) increased insurance sales; and (ii) an increase in
Life insurance premium redemptions.
Personnel Expenses for the quarter increased by 18.6% to R$ 1,053 million, when
compared to 1Q02, mainly due to (i) salary increases (7%) pursuant to
trade-union agreements (September/02); (ii) increase in the number of employees
subsequent to acquisitions in 1H02 - R$ 54 million; and (iii) increase in
expenses for benefits and to a less extent, strengthening of provisions for
labor claims - R$ 13 million. .
Administrative Expenses for the quarter were R$ 1,101 million, corresponding to
a growth rate of 30.5% in relation to 1Q02. The increase mainly reflects
expansion in the customer service network, in particular: (i) third-party
services - R$ 38 million; (ii) depreciation and amortization - R$ 38 million;
(iii) communications - R$ 28 million; (iv) rents - R$ 29 million, mainly
relating to branches which were auctioned from June 2002; (v) leasing - R$ 26
million; and (vi) the effects of acquisitions in 1H02.
2.5 Operating Income
Operating Income was R$ 1,140 million, an increase of 84.8% over 1Q02. The
increase mainly reflects: (i) positive variation in financial margin; (ii)
increase in income from commissions and fees; (iii) increase in other operating
income, net of other operating expenses, offest by : (iv) increase in expense
for provision for loan losses, and (v) increases in personnel and administrative
expenses
2.6 Taxes and Contributions
Taxes and contributions paid and accrued, including social security dues,
totaled R$ 884 million, corresponding to 1.74 times net income for 1Q03. In
1Q02, taxes and contributions corresponded to 1.66 times net income.
3. Analysis of the Consolidated Balance Sheet
3.1 Securities
Securities totaled R$ 34,430 million, a decrease of 11.6% as compared to 1Q02
and are classified as follows: 68.0% are “Trading Securities”, 16.2% are
“Available for Sale”, 15.0% are “Held to Maturity” and 0.8% are “Derivative
Financial Instruments”. The securities portfolio includes restricted securities
and technical reserves of the Organization’s insurance, private pension plan and
savings bond companies. Securities comprised 23.7% of the total consolidated
assets in 1Q03, as compared to 32.7% in 1Q02.
3.2 Credit Operations
The Credit Portfolio totaled R$ 49,655 million, an increase of 0.2% compared to
1Q02.
AA to C rated credit transactions totaled R$ 45,062 million and represent 90.7%
of the Credit Portfolio for the period, compared to 90.2% in 1Q02.
The balance of the Allowance for Loan Losses (PDD) totaled R$ 3,902 million, an
increase of 12.1% in relation to 1Q02 and corresponding to 7.9% of the credit
portfolio, compared with 7.0% in 1Q02.
Charge-offs for the period amounted to R$ 572 million, an increase of 35.2% over
1Q02, corresponding to 1.2% of the credit portfolio, compared with 0.9% in 1Q02.
The abnormal course Credit Portfolio comprising D to H ratings (credits past due
for more than 60 days, plus respective future installments) totaled R$ 2,742
million, a decrease of 11.4% compared to 1Q02. The total allowance (R$ 3,902
million) covers 142.3% of this portfolio. In 1Q02, coverage was 112.4%.
3.3 Funds Obtained
Total deposits amounted to R$ 54,871 million, a 19.5% increase over 1Q02.
Deposits comprise R$ 10,964 million in demand deposits, R$ 20,236 million in
savings deposits, R$ 23,631 million in time deposits and R$ 40 million in
interbank deposits.
Borrowings and Onlendings amounted to R$ 16,229 million, up 10.3% over 1Q02.
Subordinated Debt totaled R$ 3,391 million, 71.2% in local currency and 28.8% in
foreign currency.
Technical Reserves for Insurance, Savings Bonds and Private Pension Plans
totaled R$ 21,050 million, a 44.9% growth rate compared to 1Q02.
3.4 Stockholders’ Equity
Stockholders’ Equity totals R$ 11,708 million, an 18.0% increase over 1Q02.
Managed Stockholders’ Equity is R$ 11,821 million, or 8.1% of consolidated
assets, compared with 8.6% in 1Q02.
Total Reference Equity (capital base) is R$ 15,143 million, a growth rate of
28.9% compared to 1Q02.
Net equity per thousand shares is R$ 7.73.
4. Funds Under Management
Funds under management by Bradesco Asset Management totaled R$ 75,931 million,
of which R$ 54,862 million is in Investment Funds and R$ 21,069 million in
Customer Portfolios, increases of 15.8% and 23.3%, respectively, compared to
1Q02.
5. Customer Service Network
At the end of March 2003, the Bradesco Customer Service Network had:
2,965 Branches in Brazil (Bradesco - 2,521 Banco BCN - 224, Banco
Mercantil - 219 and Banco Finasa - 1).
6 Branches abroad, 1 in New York (Bradesco), 4 in Grand Cayman
(Bradesco, BCN, Mercantil and Banco Boavista) and 1 in Nassau,
Bahamas (Boavista).
7 Subsidiaries abroad (Banco Bradesco Argentina S.A. in Buenos
Aires, Banco Bradesco Luxembourg S.A. and Banco Mercantil de São
Paulo International S.A., both in Luxembourg, Boavista Banking
Ltd. in Nassau, Cidade Capital Markets Ltd. in Grand Cayman,
Bradesco Services Co. Ltd. in Tokyo and Bradesco Securities, Inc.
in New York).
2,745 Banco Postal branches.
1,871 Banking service posts and outlets in companies (Bradesco - 1,486
BCN - 186 and Mercantil - 199).
1,755 Outplaced terminals in the BDN- Bradesco Day and Night Network.
51 Branches of Finasa Promotora de Vendas, present in 13,342 vehicle
dealerships and 1,182 stores selling furniture and home decor,
mobile phones and IT related equipment.
21,285 ATMs in the BDN - Bradesco Day and Night Self-service Network,
11,476 of which also operate at weekends and on bank holidays.
Bradesco Internet Banking had more than 4.9 million registered users, who
carried out 79.3 million transactions in 1Q03, a 32% increase in the number of
transactions as compared to 1Q02.
ShopCredit, the Bank’s Loan and Financing website, computed 131 thousand
transactions/operations for 1Q03.
6. Human Resources
The Bradesco Organization’s headcount totals 74,172 employees, with 62,959
employed by Bradesco and 11,213 by its subsidiary companies.
Seeking to enhance the level of its customer service quality, the Bank continued
its across-the-board staff training program in the pursuit to offer its
employees best possible professional qualifications and career development
opportunities. The benefit plans designed to guarantee the well-being, better
life quality and security of Bradesco employees and their dependents covered
183,595 people at the end of the quarter.
7. Bradesco Organization Activities in the Social Area
In the social area, the Organization continues its important educational work
through the Bradesco Foundation (Fundação Bradesco). This year, with the opening
of a new unit in Boa Vista, capital of the State of Roraima, the Foundation now
has a total of 39 schools, installed as a priority in Brazil’s most deprived
regions in all 26 states and in the Federal District. More than 105 thousand
students receive education, completely free-of-charge, including youth and adult
education courses and basic professional training. The Bradesco Foundation also
provides free meals, uniforms, school materials and medical/dental care to
49,463 infant, junior, middle/high and technical school pupils.
8. Market Indicators (%)
--------------------------------------------------------------------------------
1Q02 1Q03
--------------------------------------------------------------------------------
USD commercial rate 0.14 (5.10)
--------------------------------------------------------------------------------
CDI 4.20 5.68
--------------------------------------------------------------------------------
IPCA 1.49 5.13
--------------------------------------------------------------------------------
TR - Reference rate 0.55 1.28
--------------------------------------------------------------------------------
9. Forthcoming Events
9.1. Teleconference - Results for the First Quarter of 2003
Date: May 5, 2003
In Portuguese:
16h30 (São Paulo time)
Brazil: (0xx11) 4613-0501
International: (+5511) 4613-0501
Conference Call ID: 473 or Bradesco
In English:
14h30 (São Paulo time)
USA: (+1 888) 694-4502 (Toll Free)
Brazil: (0800) 891-5046
International: (+1 973) 935-8511
Conference Call ID: 473 or Bradesco
Simultaneous webcast: www.bradesco.com.br
Additional information can be obtained from our Investor Relations Team:
Contacts:
Jean Philippe Leroy Bernardo Garcia
Technical Director of Investor Relations Executive Manager of Investor Relations
Phone: (# 55 11) 3684-9229 Phone: (# 55 11) 3684-9302
e-mail: 4260.jean@bradesco.com.br e-mail: 4260.bernardo@bradesco.com.br
The information contained in this document may include future considerations
that reflect the current perception and perspectives of Banco Bradesco’s Board
of Executive Officers on developments in the macroeconomic environment, sector
conditions, interest rates, performance and the Bank’s financial results. Any
statements, expectations, capacities, plans and conjectures contained in this
document and which do not describe historical facts, such as information
regarding the declaration of the payment of dividends, the future direction of
operations, implementation of significant operating and financial strategies,
the investment program, factors or trends which affect the financial condition,
liquidity or results of operations, are future considerations of significance
provided for in the “U.S. Private Securities Litigation Reform Act” of 1995 and
contemplate various risks and uncertainties. There is no guarantee that such
results will occur. The statements are based on various factors and
expectations, including economic and market conditions, industry competitiveness
and operating factors. Actual results could be materially different from
Bradesco’s present expectations in the event of possible changes to such
expectations and factors.
1st Quarter 2003 Results
May 5, 2003
PRESS RELEASE
Disclosure of 1st Quarter Results for 2003 compared
to 4th Quarter Results for 2002
Banco Bradesco, (BOVESPA: BBDC4 and BBDC3; Latibex: XBBDC; NYSE: BBD), Brazil’s
largest Private Group in revenues for the fourth year in a row and Brazil’s
largest Bank in equity, according to the 2002 issue of Exame Magazine’s Best and
Biggest Guide, announced today its first-quarter results for 2003 (1Q03). The
Bank reported net income of R$ 508 million, a 27.3% decrease compared to income
reported for the fourth quarter of 2002 (4Q02) of R$ 698 million, and earnings
per thousand shares of R$ 0.33, a decrease of 32.7% as compared to earnings for
4Q02 of R$ 0.49. Annualized return on stockholders’ equity was 18.50% and on
Total Assets 1.41%, compared with 28.34% and 1.97%, respectively for 4Q02.
The quarter was marked by the following important events:
• On January 10, 2003, the signing of a commitment to transfer the share
control of Banco Bilbao Vizcaya Argentaria Brasil S.A. and subsidiaries to
Bradesco.
• On January 27, 2003, the signing with Banco J.P. Morgan S.A., of an
“Agreement for the Transfer of Rights and Obligations and Other Accords”
regarding the acquisition of the activities of Administration and
Management of the Securities and Investment Fund Portfolios managed by
JPMorgan Fleming Asset Management.
• In March, a 20% increase in monthly interest attributed to own capital to
be paid as from April 2003
• On March 31, 2003, the Stockholders’ Meeting held to approve the
incorporation of the shares of the minority stockholders of Banco Mercantil
de São Paulo S.A.
The following financial and operating information, except where otherwise
indicated, is presented on a consolidated basis and in reais, in accordance with
Brazilian corporate legislation. The full report can be downloaded directly from
the Investor Relations page on the Bank’s website (www.bradesco.com.br).
1. Highlights for the first quarter of 2003
• Net Income was R$ 508 million for 1Q03, a 27.3% decrease as compared to net
income for 4Q02.
- Financial Activity results were R$ 332 million, a 0.30% increase over
results for 4Q02.
- The Insurance Group (Insurance, Private Pension Plan and Savings Bond
companies) contributed with results of R$ 156 million, a 42.7%
decrease in comparison with results for 4Q02.
- The results of other activities totaled R$ 20 million.
• Income from financial intermediation totaled R$ 2,628 million,
corresponding to 11.3% increase compared with 4Q02.
• The financial margin was R$ 3,436 million, a growth of 16.8% as compared to
4Q02.
• Operating Income was R$ 1,140 million, 73.0% higher than in 4Q02.
• Consolidated Assets amounted to R$ 145,000 million, a growth of 1.6% as
compared to 4Q02.
• The Basel capital adequacy ratio was 19.7% on a consolidated financial
basis and 17.1% on a total consolidated basis, compared to 17.9% and 15.8%
respectively, in 4Q02.
• The permanent assets to stockholders' equity ratio was 42.5% on a
consolidated financial basis and 31.3% on a total consolidated basis,
compared to 48.3% and 37.2%, respectively in 4Q02.
2. Analysis of Consolidated Results
2.1 Income from Lending and Trading activities
Income from Credit and Leasing Operations totaled R$ 3,031 million, an increase
of 90.0% as compared to 4Q02. This growth mainly reflects: (i) the increase in
average interest rates for 1Q03; partially offset by: (ii) negative exchange
variation of 5.1% in 1Q03. This account should be analyzed in conjunction with
“expenses for borrowings and onlendings” and “market funding expenses”.
Results of Securities and Derivative Financial Instrument Operations amounted to
R$ 3,513 million, an increase of 340.8% compared to 4Q02. The variation was
mainly due to: (i) additional resources from increased funding in 1Q03,
especially technical reserves; and (ii) increase in average interest rates in
1Q03. This account should be analyzed in conjunction with “expenses for
borrowings and onlendings” and “market funding expenses”.
Results of Foreign Exchange Transactions totaled R$ 99 million, 41.8% higher
than in 4Q02. This account should be analyzed net of foreign funding expenses
used to finance import/export operations. Net of these deductions, results would
be R$ 74 million in 4Q02 and R$ 72 million in 1Q03.
2.2 Expenses for Lending and Trading Activities
Market Funding Expenses totaled R$ 3,424 million, an increase of 340.1% compared
to 4Q02. This growth mainly reflects: (i) the increase in average interest rates
for 1Q03; and (ii) the increase in the average volume of funds obtained for the
period, affected mainly by new issuances of securities abroad in 1Q03, partially
offset by: (iii) negative exchange variation of 5.1% in 1Q03. This account
should be analyzed in conjunction with “income on credit and leasing operations”
and “results of securities and derivative financial instrument operations”.
Expenses for Borrowings and Onlendings totaled R$ 141 million, a decrease of
116.9% compared to expenses of R$ (834) million for 4Q02. The variation mainly
reflects: (i) average interest rate increases in 1Q03; partially offset by: (ii)
less decrease in negative exchange variation compared to 4Q02. This account
should be analyzed in conjunction with “income on credit and leasing operations”
and “results of securities and derivative financial instrument operations”.
Provision for Loan Losses totaled R$ 808 million, 39.6% more than in 4Q02.
Excluding the additional provisions of R$ 81 million and R$ 298 million recorded
in 4Q02 and 1Q03, respectively, the slight decrease of R$ 12 million in this
expense reflects typical first-quarter seasonal effects.
2.3 Financial Margin
Financial margin totaled R$ 3,436 million, 16.8% higher than in 4Q02. The
oscillation in margin was mainly due to: (i) less decrease in exchange variation
as compared to 4Q02, on permanent investments abroad; and (ii) average interest
rate increases for 1Q03. The annualized financial margin on total average assets
increased from 8.6% in 4Q02 to 9.9% in 1Q03. Adjusting the additional provision
for market risk fluctuation recorded/reversed for these periods, annualized
financial margin would be 9.9% and 10.4%, respectively.
2.4 Other Operating Income and Expenses
Income on Commissions and Fees totaled R$ 998 million in 1Q03, a 0.7% increase
compared with 4Q02. Income on commissions and fees remained practically stable,
with a slight increase in the credit card component.
Income from Insurance Premiums, Private Pension Plans and Savings Bonds totaled
R$ 2,770 million in 1Q03, a 14.6% decrease compared to 4Q02, mainly due to
greater sales of supplementary pension plan products in 4Q02, following the
introduction of rules which permit the deduction by participants of plan
contributions for income tax calculation purposes.
Variations in Technical Reserves for Insurance, Pension Plans and Savings Bonds
totaled R$ 1,043 million in 1Q03, a decrease of 29.7% compared with 4Q02. This
variation was generated by a decrease in technical reserves following a lower
sales volume of supplementary pension plan products in 1Q03 compared with 4Q02.
Insurance Claims were R$ 1,019 million, an 8.8% growth rate compared to 4Q02.
This variation was due to: (i) the increase in claims payments; (ii) insurance
premium redemptions in the Life line; and (iii) Auto line claims.
Personnel Expenses for the quarter increased by 0.6% to R$ 1,053 million, when
compared to 4Q02. Personnel expenses, despite the concentration of vacation pay,
remained almost stable for the quarter, as a result of the increase in expense
for benefits and the strengthening of provisions for labor claims.
Administrative Expenses for the quarter were R$ 1,101 million, corresponding to
a 0.9% decrease when compared to expenses for 4Q02. Administrative expenses
remained practically stable for the quarter with a slight reduction decrease
following a decrease in expenses for advertising and publicity in 1Q03.
2.5 Operating Income
Operating income was R$ 1,140 million, an increase of 73.0% over 4Q02. The
increase mainly reflects: (i) positive variation in financial margin; and (ii)
increase in other operating income, net of other operating expenses, offest by :
(iv) increase in expense for provision for loan losses
2.6 Taxes and Contributions
Taxes and contributions paid and accrued, including social security dues,
totaled R$ 884 million, corresponding to 1.74 times net income for 1Q03. In
4Q02, taxes and contributions corresponded to 0.87 times net income.
3. Analysis of the Consolidated Balance Sheet
3.1 Securities
Securities totaled R$ 34,430 million, a decrease of 7.0% as compared to 4Q02 and
are classified as follows: 68.0% are “Trading Securities”, 16.2% are “Available
for Sale”, 15.0% are “Held to Maturity” and 0.8% are “Derivative Financial
Instruments”. The securities portfolio includes restricted securities and
technical reserves of the Organization’s insurance, private pension plan and
savings bond companies. Securities comprised 23.7% of the total consolidated
assets in 1Q03, as compared 25.9% in 4Q02.
3.2 Credit Operations
The Credit Portfolio totaled R$ 49,655 million, a decrease of 2.3% compared to
4Q02.
AA to C rated credit transactions totaled R$ 45,062 million and represent 90.7%
of the Credit Portfolio for the period, compared to 90.9% in 4Q02.
The balance of the Allowance for Loan Losses (PDD) totaled R$ 3,902 million, an
increase of 6.5% in relation to 4Q02 and corresponding to 7.9% of the credit
portfolio, compared with 7.2% in 4Q02.
Charge-offs for the period amounted to R$ 572 million, 21.9% less than in 4Q02,
corresponding to 1.2% of the credit portfolio, compared with 1.4% in 4Q02.
The abnormal course Credit Portfolio comprising D to H ratings (credits past due
for more than 60 days, plus respective future installments) totaled R$ 2,742
million, an increase of 2.5% compared to 4Q02. The total allowance (R$ 3,902
million) covers 142.3% of this portfolio. In 4Q02, coverage was 137.0%.
3.3 Funds Obtained
Total deposits amounted to R$ 54,871 million, a decrease of 2.6% compared to
4Q02. Deposits comprise R$ 10,964 million in demand deposits, R$ 20,236 million
in savings deposits, R$ 23,631 million in time deposits and R$ 40 million in
interbank deposits.
Borrowings and Onlendings amounted to R$ 16,229 million, down by 1.3% as
compared to 4Q02.
Subordinated Debt totaled R$ 3,391 million, 71.2% in local currency and 28.8% in
foreign currency.
Technical Reserves for Insurance, Savings Bonds and Private Pension Plans
totaled R$ 21,050 million, a 9.9% growth rate over 4Q02.
3.4 Stockholders’ Equity
Stockholders’ Equity totals R$ 11,708 million, a 7.9% increase over 4Q02.
Managed Stockholders’ Equity is R$ 11,821 million, or 8.1% of consolidated
assets, compared with 7.8% in 4Q02.
Total Reference Equity (capital base) is R$ 15,143 million, a growth rate of
5.2% compared to 4Q02.
Net equity per thousand shares is R$ 7.73.
4. Funds Under Management
Funds under management by Bradesco Asset Management totaled R$ 75,931 million,
of which R$ 54,862 million is in Investment Funds and R$21,069 million in
Customer Portfolios, increases of 20.8% and 11.8%, respectively, compared to
4Q02.
5. Customer Service Network
At the end of March 2003, the Bradesco Customer Service Network had:
2,965 Branches in Brazil (Bradesco - 2,521 Banco BCN - 224, Banco
Mercantil - 219 and Banco Finasa - 1).
6 Branches abroad, 1 in New York (Bradesco), 4 in Grand Cayman
(Bradesco, BCN, Mercantil and Banco Boavista) and 1 in Nassau,
Bahamas (Boavista).
7 Subsidiaries abroad (Banco Bradesco Argentina S.A. in Buenos
Aires, Banco Bradesco Luxembourg S.A. and Banco Mercantil de São
Paulo International S.A., both in Luxembourg, Boavista Banking
Ltd. in Nassau, Cidade Capital Markets Ltd. in Grand Cayman,
Bradesco Services Co. Ltd. in Tokyo and Bradesco Securities, Inc.
in New York).
2,745 Banco Postal branches.
1,871 Banking service posts and outlets in companies (Bradesco - 1,486
BCN - 186 and Mercantil - 199).
1,755 Outplaced terminals in the BDN- Bradesco Day and Night Network.
51 Branches of Finasa Promotora de Vendas, present in 13,342 vehicle
dealerships and 1,182 stores selling furniture and home decor,
mobile phones and IT related equipment.
21,285 ATMs in the BDN - Bradesco Day and Night Self-service Network,
11,476 of which also operate at weekends and on bank holidays.
Bradesco Internet Banking had more than 4.9 million registered users, who
carried out 79.3 million transactions in 1Q03, a 14.9% increase in the number of
transactions as compared to 4Q02.
ShopCredit, the Bank’s Loan and Financing website, computed 131 thousand
transactions/operations for 1Q03.
6. Human Resources
The Bradesco Organization’s headcount totals 74,172 employees, with 62,959
employed by Bradesco and 11,213 by its subsidiary companies.
Seeking to enhance the level of its customer service quality, the Bank continued
its across-the-board staff training program in the pursuit to offer its
employees best possible professional qualifications and career development
opportunities. The benefit plans designed to guarantee the well-being, better
life quality and security of Bradesco employees and their dependents covered
183,595 people at the end of the quarter.
7. Bradesco Organization Activities in the Social Area
In the social area, the Organization continues its important educational work
through the Bradesco Foundation (Fundação Bradesco). This year, with the opening
of a new unit in Boa Vista, capital of the State of Roraima, the Foundation now
has a total of 39 schools, installed as a priority in Brazil’s most deprived
regions in all 26 states and in the Federal District. More than 105 thousand
students receive education, completely free-of-charge, including youth and adult
education courses and basic professional training. The Bradesco Foundation also
provides free meals, uniforms, school materials and medical/dental care to
49,463 infant, junior, middle/high and technical school pupils.
8. Market Indicators (%)
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4Q02 1Q03
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USD commercial rate (9.28) (5.10)
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CDI 4.98 5.68
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IPCA 6.56 5.13
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TR - Reference rate 0.90 1.28
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9. Forthcoming Events
9.1. Teleconference - Results for the First Quarter of 2003
Date: May 5, 2003
In Portuguese:
16h30 (São Paulo time)
Brazil: (0xx11) 4613-0501
International: (+5511) 4613-0501
Conference Call ID: 473 or Bradesco
In English:
14h30 (São Paulo time)
USA: (+1 888) 694-4502 (Toll Free)
Brazil: (0800) 891-5046
International: (+1 973) 935-8511
Conference Call ID: 473 or Bradesco
Simultaneous webcast: www.bradesco.com.br
Additional information can be obtained from our Investor Relations Team:
Contacts:
Jean Philippe Leroy Bernardo Garcia
Technical Director of Investor Relations Executive Manager of Investor Relations
Phone: (# 55 11) 3684-9229 Phone: (# 55 11) 3684-9302
e-mail: 4260.jean@bradesco.com.br e-mail: 4260.bernardo@bradesco.com.br
The information contained in this document may include future considerations
that reflect the current perception and perspectives of Banco Bradesco’s Board
of Executive Officers on developments in the macroeconomic environment, sector
conditions, interest rates, performance and the Bank’s financial results. Any
statements, expectations, capacities, plans and conjectures contained in this
document and which do not describe historical facts, such as information
regarding the declaration of the payment of dividends, the future direction of
operations, implementation of significant operating and financial strategies,
the investment program, factors or trends which affect the financial condition,
liquidity or results of operations, are future considerations of significance
provided for in the “U.S. Private Securities Litigation Reform Act” of 1995 and
contemplate various risks and uncertainties. There is no guarantee that such
results will occur. The statements are based on various factors and
expectations, including economic and market conditions, industry competitiveness
and operating factors. Actual results could be materially different from
Bradesco’s present expectations in the event of possible changes to such
expectations and factors.
|
BANCO BRADESCO S.A.
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| By: |
/S/
José Luiz Acar Pedro
| |
|
José Luiz Acar Pedro
Executive Vice President and Investor Relations Director
| ||
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.