Banco Bradesco Sa American Depositary Shares

Good afternoon, ladies and gentlemen, and thank you for waiting. We would like to welcome everyone to Radisco's 4th Quarter 2022 Earnings Conference Call. This call is being broadcast simultaneously through the Internet in the Investor Relations website, radiscori.com.br.en. In that address, you can also find the presentation available for download. We inform that all participants will only be able to listen to the conference call during the company's presentation. After the presentation, there will be a question and answer session when further instructions will be given. Should any participant need assistance during this call, please press star zero to reach the operator. Before proceeding, Let me mention that forward-looking statements are based on the beliefs and assumptions of Banco Bradesco's management and on information currently available to the company. They involve risks, uncertainties, and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions industry conditions and other operating factors could also affect the future results of Banco Bradesco and could cause results to differ materially from those expressed in such forward-looking statements. Now, I'll turn the conference over to Mr. Eduardo Poterio, IR Head. Please, go ahead.

Hello, everyone. Thanks for joining our call for the fourth quarter of 2022. We have here in the room Octavio de Lázaro Jr., our CEO, Cassiano Scarpelli, Executive Vice President and CFO, Moacir Nakbar Jr., Executive Vice President in Charge of Risk, Osvaldo Fernandes, Executive Director, Carlos Firetti, IRO, and Ivan Contijo, Bradesco Insurance Group CEO. I move the floor now to Firetti. Thank you.

hello good afternoon everyone thank you for joining our conference call for the fourth quarter's 22 results we posted a net profit of 20.7 billion reais in 2022 23.7 excluding the impact of the full provisioning for a specific large client these numbers are below the levels we want to deliver and below what we consider to be the recurring levels Bradesco is able to show. We are certainly not satisfied with that. Our investors can be sure that we are working to change it as soon as possible. We are confident that we can return to levels of performance we used to produce in the past. Our goal is to return to a sustainable ROE above 18%. The dip in profit and returns in 2022 can be explained mainly by three factors. The negative impact from the fast select rate hikes on our asset liability management positions, an increasing delinquency in the retail segment, both for individuals and small companies, and additionally, provisions amounting to R$4.9 billion in defense.