BBD

Based on the **Reference Form 20-F** for **Banco Bradesco S.A.** for the fiscal year ended December 31, 2020, here is a summary of the key financial and operational highlights: ### **1. Financial Performance (2020)** * **Net Income:** R$16.034 billion (a decrease of 24.3% compared to 2019's R$21.173 billion). * **Profitability:** * Return on Average Shareholders' Equity (ROAE): **11.7%**. * Return on Average Total Assets (ROAA): **1.1%**. * **Total Assets:** R$1.605 trillion. * **Shareholders' Equity:** R$145.620 billion (attributable to controlling shareholders). * **Dividends:** The dividend payout ratio for 2020 was **30.0%** of net income. ### **2. Operational Highlights** * **Loan Portfolio:** Total loans and advances to customers reached **R$513.2 billion**, a growth of **12.2%** year-over-year. * **Corporate Loans:** Grew 13.1%, driven significantly by a 57.9% increase in working capital. * **Individual Loans:** Grew 11.3%, with a 33.7% increase in real estate financing and 10.7% in payroll-deductible loans. * **Deposits:** Total client deposits (demand, savings, and time) reached **R$545.3 billion**, a significant increase of **48.9%** compared to 2019, largely due to the accumulation of savings during the pandemic. * **Digital Channels:** Digital channels accounted for **98%** of all transactions in 2020. * **Mobile App:** 14.4 billion transactions. * **Internet Banking:** 5.3 billion transactions. * **Loans via Digital:** 25.3% of total authorized loans were made autonomously via digital channels. * **Market Share:** Bradesco maintained leadership positions in several segments, including: * **INSS Benefit Payments:** 32.1% market share. * **Leasing Operations:** 21.9% market share. * **Insurance/Pension/Capitalization:** 22.4% market share. ### **3. Impact of the Pandemic (COVID-19)** * **Economic Context:** The year was marked by the global pandemic, leading to a contraction in the global economy and significant uncertainty in Brazil. * **Response:** The bank implemented extensive remote work programs, invested in technology infrastructure (VPNs, equipment), and maintained a robust branch network. * **Credit Quality:** * **Non-performing Loans (NPLs):** NPLs (over 60 days) decreased to **2.8%** of the total loan portfolio (down from 4.2% in 2019). * **Provisions:** Expenses for expected credit losses increased by **49.3%** to R$18.7 billion to absorb potential future impacts of the economic downturn. * **Coverage Ratio:** The coverage ratio (expected losses vs. overdue operations) stood at **313.5%**. ### **4. Strategic Acquisitions and Divestitures** * **Acquisition of BAC Florida Bank:** In October 2020, Bradesco completed the acquisition of **BAC Florida Bank** (and its subsidiaries) in the United States for approximately **US$500 million**. This move aims to expand investment offerings and banking services for high-net-worth clients in the US. * **Divestiture of Chain Serviços:** In January 2020, the bank completed the sale of its stake in *Chain Serviços e Contact Center S.A.* to Almaviva do Brasil. * **Merger:** In December 2019, Bradesco merged *Banco Bradesco Cartões S.A.* into the main bank to optimize costs and streamline card operations. ### **5. Capital and Liquidity** * **Basel III Ratio:** The total capital ratio was **15.8%** (Tier 1: 13.8%; Common Equity: 12.7%), well above regulatory requirements. * **Liquidity:** The bank maintained a comfortable liquidity margin, with significant growth in time deposits and savings accounts providing a stable funding base. * **Debt Issuance:** The bank issued various securities, including subordinated debt and global medium-term notes, to manage capital and liquidity needs. ### **6. Corporate Governance and Sustainability** * **ESG Commitment:** Bradesco committed to having **100% of its operations supplied by renewable energy** by the end of 2020 and to neutralizing 100% of its greenhouse gas emissions from 2019 onwards. * **Board Composition:** The Board of Directors consists of 10 members, including 3 independent directors. * **Risk Management:** The bank utilizes a three-line defense model for risk management and internal controls, with a strong focus on credit, market, and operational risks. ### **7. Outlook for 2021** * **Projections:** Management projected loan portfolio growth between **9% and 13%** for 2021. * **Expectations:** The outlook is based on the acceleration of vaccination, the resumption of structural reforms in Brazil, and a gradual normalization of monetary policy, though risks remain regarding public accounts and global financial conditions. This summary reflects the bank's resilience during a challenging year, its strong digital transformation, and its strategic positioning for future growth.