Bradesco - 1Q18 Results

SAO PAULO, April 26, 2018 /CNW/ -- Banco Bradesco (B3: BBDC3, BBDC4; NYSE: BBD, BBDO; e Latibex: XBBDC) announces today its results for the first quarter of 2018 (1Q18). Please refer to the information below.

The main figures reported by Bradesco are as follows:

				Variation% (unless other wise stated)
R$ million (unless otherwise stated)	1Q18	4Q17	1Q17	1Q18 x 4Q17	1Q18 x 1Q17
Result
Recurring Net Income (1)	5102	4,862	4,648	4.9	9.8
Net Interest Income	15,686	15,813	16,036	(0.8)	(2.2)
Expanded ALL (2)	(3,892)	(5,405)	(5,282)	(28.0)	(26.3)
Fee and Commission Income	7,831	8,062	7,430	(2.9)	5.4
Insurance Written Premiums, Pension Plan Contributions and Capitalization Bond Income	17,570	21,192	17,948	(17.1)	(2.1)
Statement of Financial Position
Total Assets (3)	1,303,842	1,298,328	1,294,139	0.4	0.7
Expanded Loan Portfolio (4)	486,645	492,931	502,714	(1.3)	(3.2)
- Individuals	177,814	175,469	171,820	1.3	3.5
- Companies	308,831	317,462	330,894	(2.7)	(6.7)
Shareholders' Equity	113,776	110,457	104,558	3.0	8.8
Assets under Management	2,003,948	1,987,487	1,943,687	0.8	3.1
Highlights
Annualized Return on Average Equity (ROAE) - % (5)	18.6	18.0	18.3	0.6 p.p.	0.3 p.p.
Efficiency Ratio (ER) - % (6)	40.9	40.8	40.0	0.1 p.p.	0.9 p.p.
Recurring Net Income per Share - R$ (6) (7)	2.91	2.84	2.64	2.5	10.2
Market Capitalization (8)	237,219	200,521	178,208	18.3	33.1
Interest on Shareholders' Equity - Net	1,519	2,216	1,568	(31.5)	(3.1)
Delinquency Ratio (> 90 days (9) / Loan Portfolio) - %	4.4	4.7	5.6	(0.3) p.p.	(1.2) p.p.
Tier I Capital - % (10)	12.4	13.1	12.0	(0.7) p.p.	0.4 p.p.

(1) According to the non-recurring events described on page 5 of this Economic and Financial Analysis Report;
(2) Includes provision for sureties, guarantees, income from credit recoveries, discounts granted, result with BNDU (assets not for own use) and impairment of financial assets;
(3) For more information, please see note 4 – Balance Sheet and Managerial Statement of Income, in chapter "Complete Financial Statements" of this report;
(4) Besides the Loan portfolio – Brazilian Central Bank (Bacen) concept, includes sureties, guarantees, credit letters, advances on credit card receivables, debentures, promissory notes, co-obligations in real estate receivable certificates and rural credit;
(5) It excludes mark-to-market effect of Available-for-Sale Securities recorded under the Shareholders' Equity;
(6) In the last 12 months;
(7) For comparison purposes, shares were adjusted in accordance with bonuses and stock splits occurred in the periods;
(8) Number of shares (excluding treasury shares) multiplied by the closing price for common and preferred shares on the period's last trading day;
(9) Overdue loans; and
(10) Reduction related to the change in the timetable for the application of deductions on the prudential adjustments that resulted in 100% in 2018 (80% in 2017).

Recurring Net Income vs. Book Net Income

Below is a comparison between the main non-recurring events that affected the net income in the period:

R$ million	1Q18	4Q17	1Q17
Recurring Net Income	5,102	4,862	4,648
Non-Recurring Events	(635)	(1069)	(577)
- Goodw ill amortization (Gross)	(607)	(600)	(554)
- Other (1)	(28)	(469)	(23)
Book Net Income	4,467	3,793	4,071

(1) Consisting basically of contingent liabilities, and in the 4Q17, includes: (a) impairment of non-financial assets, in the amount of R$278 million; (b) special tax regularization program (PERT), in the amount of R$49 million; and (c) program of incentivized installment (PPI), in the amount of R$62 million. Net of tax effects.

Summarized Analysis of Recurring Income

For more information about the summarized analysis of recurring income presented as follows, see chapter "Economic and Financial Analysis" of this report.

Recurring Income Statement				Variation %
(R$ million)	1Q18	4Q17	1Q17	1Q18 x 4Q17	1Q18 x 1Q17
Net Interest Income	15,686	15,813	16,036	(0.8)	(2.2)
-  NII - Interest Earning Portion	15,493	15,661	15,900	(1.1)	(2.6)
-  NII - Non-Interest Earning Portion (1)	193	152	136	27.0	41.9
Expanded PDD	(3,892)	(5,405)	(5,282)	(28.0)	(26.3)
ALL Expenses	(4,599)	(5,414)	(5,896)	(15.10	(22.0)
Income from Credit Recovery	1,447	1,593	1,541	(9.2)	(6.1)
Granted Discounts / Other (2)	(485)	(801)	(507)	(39.5)	(4.3)
Impairment of Financial Assets	(255)	(7830	(420)	(67.4)	(39.3)
Gross Income from Financial Intermediation	11,794	10,408	10,754	13.3	9.7
Income from Insurance, Pension Plans and Capitalization Bonds (3)	1,515	1,873	1,627	(19.1)	(6.9)
Fee and Commission Income	7,831	8,062	7,430	(2.9)	5.4
Personnel Expenses	(4,829)	(4,878)	(4,822)	(1.0)	0.1
Other Administrative Expenses	(4,810)	(5,340)	(4,854)	(9.90	(0.9)
Tax Expenses	(1,821)	(1,758)	(1,772)	3.6	2.8
Equity in the earnings (losses) of unconsolidated and jointly controlled subsidiaries	27	30	58	(10.0)	(53.4)
Other Operating Income / (Expenses)	(2,037)	(1,923)	(1,833)	5.9	11.1
Operating Income	7,670	6,474	6,588	18.5	16.4
Non-Operating Income	(9)	(160	(52)	(43.8)	(82.7)
IR/CS	(2,483)	(1,543)	(1,839)	60.9	35.0
Income Tax / Social Contribution	(76)	(53)	(49)	43.4	55.1
Non-controlling interests in subsidiaries	5,102	4,862	4648	4.9	9.8

(1) Includes impairment of financial assets without characteristic of credit;
(2) Includes the result with BNDU and provision to sureties and guarantees; and
(3) Income from Insurance, Pension Plans and Capitalization Bonds = Retained Premiums from Insurance, Pension Plans and Capitalization Bonds - Variation in technical reserves for Insurance, Pension Plans and Capitalization Bonds - Retained Claims - Capitalization Bond Draws and Redemptions - Insurance Plan, Pension Plan and Capitalization Bond Selling Expenses.

The Financial Statements can be found in Bradesco's Investor Relations website at banco.bradesco/ri.

CONTACT
Investor Relations Team
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SOURCE Banco Bradesco S.A.