Business Context and Reporting Period
This Form 6-K filing by Banco Bradesco S.A. (Bank Bradesco) reports a material fact regarding shareholder distributions for the period ending December 31, 2019. The filing, dated December 9, 2019, details a proposal by the Board of Executive Officers to the Board of Directors for the payment of supplementary interest on shareholders' equity.
Key Financial Metrics and Distributions
The filing focuses on capital returns to shareholders rather than operational financial metrics such as revenue or net income. Key distribution figures for 2019 include:
- Supplementary Interest Proposal: Total value of R$4,245,000,000.00 (R$0.503379600 per common share; R$0.553717560 per preferred share).
- Total 2019 Interest Paid and Payable: R$7,372,857,991.59.
- Amounts Paid (Jan-Nov): R$2,982,392,143.25 (includes monthly interest and interim interest).
- Amounts Payable (Dec): R$4,390,465,848.34 (includes December monthly interest and the proposed supplementary interest).
- Extraordinary Dividends: R$8,000,000,000.00 paid on October 23, 2019, from "Profit Reserves – Statutory."
The filing does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes and Distribution Details
The primary material change is the proposed supplementary interest, which represents approximately 29 times the monthly interest paid (net of income tax). If approved by the Board of Directors on December 19, 2019:
- Record Date: December 19, 2019.
- Ex-Rights Date: December 20, 2019.
- Payment Date: December 30, 2019.
- Net Payment (after 15% withholding tax): R$0.427872660 per common share and R$0.470659926 per preferred share (exempt for legal entity shareholders).
This supplementary interest will be included in the calculation of mandatory dividends for the 2019 financial year.
Outlook, Risks, and Management Commentary
Management indicated that the Company may distribute new interest and/or dividends based on the final results calculated at the end of the 2019 financial year. The filing includes standard forward-looking statements, noting that future results depend on economic conditions, industry trends, and operating factors, with no guarantee that expected events will occur.
Investor Verification Checklist
- Confirm the final approval of the supplementary interest by the Board of Directors on December 19, 2019.
- Verify the final 2019 financial results to determine if additional dividends or interest are declared.
- Check the total capital returned to shareholders in 2019, combining the R$8 billion extraordinary dividend, the R$7.37 billion in interest, and any final year-end dividends.
- Review the impact of the 15% withholding tax on net returns for individual investors versus legal entities.