Banco Bradesco SA Q3 FY2024 earnings call

• Profitability is growing solidly with safe growth, driven by NII from client NII and reduced loan loss provisions. • Productivity gains, controlled credit risk, balanced credit portfolio growth, and improving delinquency ratios. • Operating expenses evolving as expected. The insurance group has a strong ROE. • Increased stake in Cielo from the September tender offer. • AUM at Bram and TVU close to R$1 trillion, with asset management fee income up 11%. • Footprint revision: 1,041 points of sale changed in Q3, accelerating in Q4. • Hired senior professionals, invested in credit business unit, fixed income, and digital channels. • Completed Cielo tender offer, John Deere Bank acquisition approval by CADE expected to close this year. • Launched new segment for high net worth individuals under Wealth Management Vertical, with 3 flagships opening by late Jan '25, aiming for 45,000-50,000 clients by then. • Bradesco Expresso platform rollout completed for better service experience.

Total revenue in Q3 '24 was R$30.6 billion, up 3.7% quarter-on-quarter. Total net interest income grew 2.7% QoQ, fee and commission income grew 2.8% QoQ, and the insurance group grew 8.7% QoQ. The loan book was almost R$944 billion, growing 3.5% QoQ. Growth was seen in all client segments: total loans 7.6%, individuals 10%, large corporates 0.7%, and SMEs almost 17%. For individuals, growth included 3.9% QoQ growth, with payroll deductible loans growing 2% vs market 1.9%, vehicle loans 4%, real estate finance 3.3% QoQ and 11.2% YoY, and rural loans 16.5% growth. Credit card grew 2.2% QoQ but high net worth clients grew 4.5%. Consumer credit grew 5.9% QoQ. Companies grew 3.2% QoQ, with micro and SMEs up 5% and middle market growing more. The insurance group had an ROE almost 24%, with premium revenue up and combined ratio 86.6%. Cielo's consolidation had a slight negative impact on results.

• Normalization of Cielo consolidation is included in guidance, with delivery as planned for NII, fee and commission income, and insurance group income. • Expectations for Q4: more investment in digital channels, more hires in technology, continue footprint review, expand SMEs and middle market segments, accelerate cash management gains. • Target to have 45,000-50,000 clients in the new high net worth segment by late Jan '25, with geographical expansion in Brazil. • John Deere Bank acquisition expected to close this year.

• Economic scenario uncertainties such as potential changes in exchange rate, inflation, interest rates, and unemployment. • Competition impact on deposit growth and client acquisition. • Delinquency risks in certain sectors if economic conditions deteriorate, though current portfolio mix is designed to mitigate this.

Q: About low portfolio growth and recovery of market share A: Marcelo Noronha discussed growth based on risk-adjusted return, quality of risk, and economic scenario considerations.

Q: On deposit growth and fee income A: Cassiano Scarpelli and Marcelo Noronha talked about demand deposits growth, competition, and asset management fee growth drivers.

Q: On agribusiness portfolio A: Marcelo Noronha explained the growth difference between rural individuals and companies, and strategy with John Deere partnership.