BANK BRADESCO current report, Q4 FY2021

Based on the **Reference Form 2021** provided for **Banco Bradesco S.A.**, here is a summary of the key financial and operational highlights for the fiscal year ended December 31, 2021: ### **1. Financial Performance (IFRS Basis)** * **Net Income:** R$ 23.381 billion (an increase of 45.8% compared to 2020). * **Profitability:** * Return on Average Shareholders' Equity (ROAE): **15.8%**. * Return on Average Total Assets (ROAA): **1.4%**. * **Shareholders' Equity:** R$ 149.777 billion (attributed to controlling shareholders). * **Total Assets:** R$ 1.676 trillion. * **Market Value:** As of December 2021, the market value of common and preferred shares totaled R$ 171.480 billion (1.2x the shareholders' equity). ### **2. Portfolio and Funding** * **Loans and Advances to Customers:** Total portfolio reached **R$ 613.834 billion**, a growth of **19.6%** compared to 2020. * **Companies:** Grew 14.3% (highlighting a 20.8% increase in loans/working capital). * **Individuals:** Grew 24.9% (highlighting a 38.3% increase in real estate financing and 20.9% in payroll-deductible loans). * **Deposits:** Total client deposits (demand, savings, and time) reached **R$ 569.726 billion**, a 4.5% increase. * **Technical Provisions (Insurance/Pension):** R$ 286.387 billion (up 2.5%). * **Securities Issued:** R$ 166.229 billion (R$ 155.2 billion issued in Brazil, R$ 10.9 billion abroad). ### **3. Key Operational Highlights** * **Digital Transformation:** Digital channels represented **98%** of all transactions. * **Mobile App:** 21.7 million active individual clients (up 6.0 million since 2019). * **Digital Loans:** 29.3% of total loans authorized were made via digital channels. * **Credit Quality:** * Non-performing loans (over 60 days) represented **3.4%** of the total portfolio. * Expected credit losses decreased by 37.7% compared to 2020, reflecting the strengthening of provisions made in 2020. * Coverage ratio (expected losses vs. overdue >60 days) was **220.0%**. * **Insurance & Pension:** Grupo Bradesco Seguros maintained its leadership in the Brazilian insurance market. * **Sustainability:** * Joined the **Net-Zero Banking Alliance (NZBA)**, committing to decarbonize loan and investment portfolios by 2050. * Achieved **100% renewable energy** supply for operations and neutralized 100% of greenhouse gas emissions from operations. * Announced a goal to allocate **R$ 250 billion** by 2025 to assets and activities promoting social and environmental benefits. ### **4. Capital Adequacy (Basel III)** * **Total Capital Ratio:** **15.8%** (well above regulatory limits). * **Tier 1 Capital Ratio:** 13.7%. * **Common Equity Tier 1 Ratio:** 12.5%. ### **5. Corporate Governance & Management** * **Board of Directors:** Composed of 11 members (4 independent). * **CEO:** Octavio de Lazari Junior. * **Dividends:** The company maintains a policy of distributing at least 30% of net income as mandatory dividends. * **Acquisitions:** * Completed the acquisition of **Banco Digio S.A.** (49.99% stake) in early 2022 for R$ 645 million to expand digital capabilities. * Completed the acquisition of **BAC Florida Bank** in late 2020 to expand US operations. ### **6. Outlook for 2022** * **Loan Portfolio Growth:** Projected between **10.0% and 14.0%**. * **Client Portion (Net Interest Income):** Projected growth between **18% and 22%**. * **Fee and Commission Income:** Projected growth between **4% and 8%**. * **Operating Expenses:** Projected growth between **1% and 5%**. * **Expected Credit Losses (ALL):** Projected between **R$ 17.0 billion and R$ 21.0 billion**. *Note: All figures are in Brazilian Reais (R$) unless otherwise specified. The data reflects the consolidated results of the Bradesco Organization.*