Business Context and Reporting Period
This Form 6-K filing by Banco Bradesco S.A. (Bank Bradesco) is a "Notice to the Market" dated July 3, 2009. The filing announces reclassifications to the company's Accounting and Managerial Statements of Income to improve readability, increase disclosure, and enhance market comparability. These new classifications are effective as of the second quarter of 2009.
Key Financial Metrics
The filing does not report new financial results for the period ending September 30, 2009, nor does it provide current revenue, profit, cash flow, or debt figures. Instead, it presents a comparative table for the first quarter of 2009 (R$ million) illustrating the impact of reclassifications on the Managerial Statement of Income:
| Line Item | Before Reclassification | After Reclassification |
|---|---|---|
| Financial Margin | 7,661 | 7,115 |
| Allowance for Doubtful Accounts | (2,920) | (2,939) |
| Gross Income from Intermediation | 4,741 | 4,176 |
| Fees and Commission Income | 2,837 | 2,723 |
| Operating Income | 2,371 | 2,260 |
| Net Income | 1,723 | 1,723 |
Note: Net Income remains unchanged at R$ 1,723 million; the reclassifications only affect the presentation of line items.
Material Changes Versus Prior Period
The filing details specific reclassifications rather than operational changes. Key adjustments include:
- Cost of Products Sold: Moved from "Other Operating Expenses" to "Personnel, Administrative and Tax Expenses."
- Interbank Fees: Reimbursed fees moved from "Fee and Commission Income" to "Other Administrative Expenses."
- Loan Commissions: Expenses with commissions in loan placement moved from "Other Operating Expenses" to "Financial Margin."
- Discounts and Foreclosures: Expenses with discounts and losses on foreclosed assets moved to "Expenses with Allowance for Doubtful Accounts."
- Third-Party Services: Related expenses moved to "Fee and Commission Income."
Historical data from June 2007 through Q1 2009 has been updated on the company's Investor Relations website to reflect these changes.
Guidance, Outlook, and Risks
The filing contains no specific financial guidance, earnings outlook, or management commentary regarding future performance. It includes a standard "Forward-Looking Statements" disclaimer, noting that any projections are based on current estimates and are subject to risks such as general economic conditions, industry trends, and operating factors. There is no guarantee that expected events will occur.
Investor Verification Checklist
- Verify the updated historical Managerial Statements of Income (June 2007–Q1 2009) on the Bradesco Investor Relations website to ensure accurate trend analysis.
- Confirm that future quarterly reports (starting Q2 2009) utilize the new classification structure for Financial Margin and Allowance for Doubtful Accounts.
- Review upcoming filings for actual operational results, as this document contains only accounting reclassifications and no new performance data.
- Monitor the impact of the reclassification on the reported "Financial Margin" and "Gross Income from Intermediation" in future periods.