Banco Bradesco S A : Bradesco 1Q24 - Earnings Presentation

earnings

operational performance

1Q24

recurring net income

R$ 4.2 bn

46.3%	1.6%
1Q24 vs. 4Q23 (q/q)	1Q24 vs. 1Q23 (y/y)

ROAE 10.2%

Improvement of ALL in retail and wholesale

Credit growth in all segments

Gross Client NII reflects a less risky mix, better client quality, and challenges in SME

Robust Control of Operating Expenses

Improvement in the over 90 days delinquency ratio in all segments

Insurance Group's solid performance

2

loan portfolio

1Q24

R$889.9 bn

1.4% (q/q) 1.2% (y/y)

inflection of the portfolio curve

% 12M growth

+5.4

		+1.6			+1.2
			-0.1	-1.6
Mar23	June	Sept	Dec	Mar24

average daily production

Non-earmarked portfolio* (1Q24 x 1Q23)

Total 18 %

Individuals 33 % Companies 15 %

*Not including cards

individuals	R$372.6 bn
			1.9% (q/q) 2.0% (y/y)
payroll-deductible loans	personal loans
2.1% (q/q)	4.5% (y/y)		10.1% (q/q)	1.8% (y/y)
real estate			vehicles
1.8% (q/q)	5.8% (y/y)		0.2% (q/q)	4.8% (y/y)
credit card			rural credit
4.1% (q/q)	4.5% (y/y)		8.2% (q/q)	17.1% (y/y)
	R$517.4 bn	1.1% (q/q)	0.7% (y/y)
companies	LC	R$345.7 bn	0.5% (q/q)	1.6% (y/y)
SME	R$171.7 bn	2.3% (q/q)	1.2% (y/y)

3

performance of credit vintages

individuals mass-market

Base 100 = 2019 Average

129

102	103							2019 Average Production
	81		83	77	79
		75
		71
				70			63
					61	61	59

114	128	102	97	83	87		78	81			74	82		105	98	104	102	88	113	103	110
									mar									jul							nov		Jan24		mar
2Q22		3Q		4Q		Jan23		feb	apr			may			june			aug		sept		oct	dec	feb
													Production						Over30 Mob4

		Products Group		Production
			1Q24 vs. 1Q23
		Payroll-deductible Loans		46%
		Installments		18%
		Financing	12%
		Cards		-14%
		Revolving		87%
		Total	25%
	Over 90 days delinquency(%) |
	Individuals (total)	6.3	6.7
			5,95.5
	4.3	4.8	4.4
		3.5
				Peak of delinquency
	Mar19 June Sept Dec Mar20 June Sept Dec Mar21 June Sept	Dec Mar22 June Sept Dec Mar23	June Sept Dec Mar24

• 25% production growth (1Q24 vs. 1Q23)
• 37% improvement in vintages quality compared to the 2019 average
• Portfolio grows again and Over90 has been falling since Jun23
• Advancements in models and algorithms, allowing for the construction of more robust credit strategies

4

performance of credit vintages

companies mass-market

Base 100 = 2019 Average

122	119	120
95		102	2019 Average Production
			89

71

63

49 48 54 53

42 42

128	126	94	78	69	80		58	65			58	63		62	61	83		82	63	74	75	84
	2Q22		3Q		4Q		Jan23		feb	mar	apr			may			june		jul		aug		sept		oct	nov	dec	Jan24	feb	mar
														Production						Over30 Mob4

		Products Group		Production
			1Q24 vs. 1Q23
		Installments		52%
		Discounts		36%
		Financing		-22%
		Cards			-10%
		Revolving		22%
		Total			3%
	Over 90 days delinquency (%) |
	SME (total)		6.2	7.2	6,8
					6.4
			4.5
	4.2	3.6
			2.6
					Peak of delinquency
	Mar19 June Sept Dec Mar20 June Sept Dec Mar21 June Sept Dec Mar22	June Sept Dec Mar23	June Sept	Dec Mar24

• 3% production growth (1Q24 vs. 1Q23)
• 58% improvement in vintages quality compared to the 2019 average
• Stabilization of the portfolio to fall and reduction of over 90 days NPL since Sep23
• Advancements in models and algorithms, allowing for the construction of more robust credit strategies

5

net interest income

1Q24

R$15.2 bn

6.1% (q/q) 9.0% (y/y)

expanded portfolio mix (%)

	Mar24 Dec23 Mar23	Mar24 vs.
				Mar23 (p.p.)
Individuals	41.9	41.7	41.5	+0.4
Payroll-deductible Loans	10.5	10.5	10.2	+0.3
Real Estate Financing	10.2	10.2	9.8	+0.4
Credit Card	7.8	8.2	8.2	-0.4
Personal Loans	6.6	6.1	6.6	-
Vehicle	3.7	3.8	4.0	-0.3
Rural Loans	2.0	1.9	1.8	+0.2
Other	1.0	1.0	1.0	-
LC	38.8	39.2	38.7	+0.1
SME	19.3	19.1	19.8	-0.5

market NII							696	630
R$0.6 bn		R$ million		23
	1Q23	2Q	3Q		4Q	1Q24
				(312)	(96)
	client NII				R$ 14.5 bn
				5.9% (q/q)		14.4% (y/y)
Gross Client NII / Gross Spread (%)		Net Client NII / Net Spread (%)
9.9	9.7	9.1	8.8	8.5
R$ billion					4.2	3.6	3.8	2.7	3.8
17.0	16.7	15.8	15.4
14.5	R$ billion
					7.4	6.3	6.6	4.9	6.7
1Q23	2Q	3Q	4Q	1Q24	1Q23	2Q	3Q	4Q	1Q24
Interest Sensitivity - Δ NII 12 months (-100 bps) | 1Q24	R$1.3 bn

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loan indicators

Over 90 days delinquency - %

6.3	7.0	7.2	6.8
		6.4
6.2	6.7	6.6	5.9		5.5
5.1	5.7 (1)	5.6 (2)	5.1	(3)	4.8	(4)
0.2	0.7 (5)	0.6 (6)	0.6 (7)	0.6(8)
		Mar23		June	Sept	Dec		Mar24
		Individuals		Micro, Small and Medium-Sized Enterprises		Large Corporates			Total

Coverage Ratio - %

278			264	260
	244	239
182	164	155	165	164
99	92	87	86	85
Mar23	June	Sept	Dec	Mar24

Coverage Ratio over 90 Days - Excluding operations 100% provisioned

Coverage Ratio over 90 Days

Coverage Ratio over 90 Days + Renegotiation

NPL Creation			114%	98%
	81%	90%	92%
	1.9%	1.8%	1.6%		1.4%
			1.3%
R$ billion
12.0	11.6 (9)	10.0	(10)
			8.6	(12)
				8.1 (11)

1Q23	2Q		3Q	4Q		1Q24
	NPL Creation - 90 days		Gross ALL Expenses / NPL Creation - 90 days			NPL Creation Ratio

Considering large corporate client 100% provisioned: : (1) 5.9%. (2) 6.1%. (3) 5.2%. (4) 5.0%. (5) 1.9%. (6) 3.2%. (7) 1.1%. (8) 1.5%. (9) R$ 13.0 bi. (10) R$ 11.7 bn. (11) R$ 8.6 bn and (12) R$ 9.7 bn

7

expenses with expanded ALL

1Q24

R$7.8 bn

25.8% (q/q) 17.9% (y/y)

Mass-market

R$ billion

4.3	4.8	4.2
R$ billion
9.5	10.3	9.2

1Q23

2Q

3Q

13.7% (q/q) 22.3% (y/y)

4.83.5

ALL/Portfolio annualized (%)

10.5

7.8

4Q1Q24

Efficiency in collection

9.4

10.1

8.88.5

7.3

1Q23

2Q

3Q

4Q

1Q24

New vintages improvement quality

Performance of companies mass-Market portfolios

Product mix

8

fee and commission income

1Q24 R$8.9 bn 1.8% (q/q) 1.3% (y/y)

consortia

R$0.6 bn 6.8% q/q 13.7% y/y

Market share: Vehicle 25.1% | Real estate 14.0% | Feb24

loan operations

R$0.6 bn 2.0% q/q 10.4% y/y

Average daily production companies: +15% | (1Q24 vs. 1Q23)

checking account

R$1.7 bn 0.7% q/q 9.6% y/y

38.3 mi account holders

asset management

R$0.8 bn 0.9% q/q 4.2% y/y

Market Share: 16.3% | mar24

Best Bank to invest in for the 3rd time (Ranking MBPI. IstoÉ Dinheiro)

card income

R$3.7 bn 2.2% q/q 2.7% y/y

Volume traded: R$80.5 billion | 1Q24

capital markets / financial advisory services

R$0.2 bn 32.8% q/q 41.4% y/y

BBI recognized by the 2024 sustainable finance awards

9

operating expenses

1Q24

R$13.4 bn

10.5% (q/q) 4.4% (y/y)

Footprint optimization with about 300 movements in 1Q24

We have completed the opening of 122 companies branches

38 thousand Bradesco Expresso points

personnel +	5.1% (q/q)	3.5% (y/y)
administrative

personneladministrative

2.3% (q/q) 5.6% (y/y)

8.2% (q/q)

1.2% (y/y)

quarterly ER improvement: 51.1% 2.3 p.p. (q/q)

10