Banco Bradesco Sa American Depositary Shares

Hello, good morning everyone, how are you? I am Marcelo Noronha, I am directly here from the City of God, at the headquarters of Bradesco, to present some details of our results from the third quarter of the year 2025. You must have already seen that we published the results last night and certainly had the opportunity to read and see some elements of our results. I bring here So, the first opening, the recurring liquid profit, as you could see, was 6.2 billion this quarter, an increase of almost 19% in the euro. We also raised our ROE by 10 bps to 14.7%. The summary of the opera here is that I think we have a solid and consistent result with everything we have been talking about in these seven trimesters of presentation of results after our transformation plan. Basically, here we talk about profitability, which maintains growth step by step and is safe, with operational consistency. Just look at all the lines here, revenue advances in practically all lines, Brutal, liquid financial margin, which is more important than bottom line. Service loan receipts, insurance group, other linked ones. And with a highlight, obviously, here for the margin of customers. Absolutely controlled inadimplency. The restructured portfolio falls, as you will see a little later. And our portfolio, with guarantees, grows proportionally, tri-to-tri, reaching almost 60%. Operational expenses in line with the expected and counted. The expenses are very controlled, I will talk a little later about it. And we were ahead of the revision movement of our footprint. We are already with a number above that number that we expected. And once again, we delivered a solid performance of the insurance group for another quarter with Maruí exceeding 21%. So, I open a little more details here for you. Our total revenue reached 35 billion, a growth of 13.1% in the euro, total financial margin almost 17% growth, service revenue almost 7% growth, and the insurance group, together, with a growth of 13%. You can see that the growth is constant. And what explains this growth in revenue? Naturally, the commercial traction, the penetration on the basis of clients. I will repeat this in another credit slide a little later. If we did not have penetration on the basis of a physical person, of a legal person, with consistent improvement, da experiência dos clientes em todos os segmentos de negócio, a gente não teria um crescimento constante em todas essas linhas de receita como a gente vem observando aqui. And then, moving on to the credit card, we reached 1 trillion and 34 billion, a new consistent growth, 9.6% in the euro. Here, without going through the whole thing, then I'll open another slide to make specific comments, we can see that the growth, both in physical and legal people, are in much more collateralized lines. So, you can see here that the biggest highlight occurred exactly in micro, small and medium-sized companies, with a growth of almost 25% and with a portfolio very well managed, with a lot of collateral, for us to have the life insurance to grow consistently. And I'll move on to the next slide, zooming in, in some credit topics that I consider important because they are growth levers, as I said in the revenue slide. So, what does this portfolio reflect? Good commercial traction in all customer segments. Second, if we didn't have a client base and penetration in that base, we wouldn't have the capacity to grow this way. And the other is the credit modeling in the business unit that we created, including with this portfolio management area that I bring here in these boxes down here, with a lot of use of machine learning. increasingly better models. We hired more than 200 people for our credit B.U. We did upskilling. And what we are seeing is a constant evolution in all segments, but not only for the physical person, for SMI, but also for the attack bank, with all the balance we want. And then I bring this Zoom to you to bring some points, because they also address a little of the future. See, the consigned credit in Bradesco, it closed now the TRI with almost 102 billion in the total portfolio. We have a share of approximately 14.2%. Among the private banks, we are the largest. We lost here in this commercial dispute for public banks. Now, notice the following. Our NASDAQ portfolio is 15.4% share. We have a public share of 14.3%. Here, we grew share. And the private sector, 7.5%. We have a small participation. We were conservative in this release of private credit. After the Q&A, if anyone wants to explore this a little more, we can comment. But we adopted a more restrictive credit policy at the beginning, exactly so as not to take certain risks. What happens here? We adopted a policy of working with the companies that we worked with before and for those collaborators of these companies that had at least one year of work. What happened in the accruals? In the first accrual, the level of inadimplency due to lack of accrual was higher than 12%. It has been falling. In this last accrual, it has already fallen well, that is, the market is getting oiled operationally. But on average, and I'm not talking about any specific institution here, on average, the level of inadimplence in this portfolio here, for these new futures after the CTPS, is around 11%. Ours is 3%. So we didn't grow, we decreased the portfolio in the private sector, in the real estate sector, In the year-to-date, now, when we look at the third TRI, the Central Bank even disclosed the September portfolio, and you can follow it there. We have already grown back in the private sector, now we accelerate with a slightly more open policy, but absolutely controlled in here. We are growing well in the public sector. The INSS, with several modifications that were made in the first quarter of this year, it left a total production in the market of R$ 7.5 billion to R$ 3.5 billion. And of course, what happens here? When we had this largest portfolio among private banks, we had a bigger monthly and periodic liquidation. So you also look at the Central Bank, a decrease in the portfolio of INSS, which now we start to grow again. So we accelerated very well in the public, we are well positioned here. And what is my expectation for the future? To grow in the TRI? and grow next year with consistency in all these lines of NSS, public and private. This is a great opportunity for us. Look at our share, we don't have to lose here, we just have to win. Second, credit card. Note that we had an expressive growth. In high income, with a lower credit risk, as we have shown. In real estate, we have a share of around 20%. There are three or four banks that have bigger shares here. In the last quarter, which we... In fact, this year, in general, we have preserved margin. Now we see the opportunity, including with some modifications as well, to accelerate our real estate credit again. The Rural, just to show the portfolio, only here from the bank, that the growth is 25%, very collateralized. SMI, we grow, as I said, consistently, in the TRI and in the year, almost 25%, and we continue here. You can remember that when we released the plan, we said we would always fight to continue in the leadership of SMI. I'm talking about companies that have revenue or revenue up to 300 million a year, according to the Central Bank, and all the banks report to it, and we won share. also here at SMI. So, to tell you that we must continue to grow our credit portfolio, remembering that we made a write-off in the last year of that restructured portfolio of almost 10 billion, And big companies, we didn't have that growth. If it wasn't for that, if they were unstable, if they hadn't done write-off, if they hadn't decreased the portfolio of big companies, we would have grown our credit portfolio even more. well tracked where we want, with the desired customer, we have demand and we will continue to grow and make it happen. I have the expectation of winning the market share in consigned, right? Of continuing to grow real estate in SMI, which we won the share, also very tracked. And then, obviously, the consequence of this attraction is a growth in the total financial margin to almost 17%, and the total liquid margin, which is the most important that we have been talking about, tri to tri, which is what hits the bottom line with 10.2 billion, 14.4% growth, but when we look at the portfolio, at the margin with the client, we reached 9% with this growth, 19% in the gross margin, but in the liquid margin, that you are balancing the portfolio with the cost of credit, 4.8%, 18% growth, we reached 10 billion, and we have been growing, and the expectation is to continue growing here. Speaking here of expenses with PDD, I saw some questions, we even did a collective with journalists, they also asked, 500 million of variation in the cost of credit tri-contra-tri. We have two cases that justify this here. First, a specific case of the attack bank that we made a provision, and I comment with you here, I can't, obviously, name names, but if you go to the complete publication, just download it, you go to the provision page, and we have the provision, the cost of credit for Massificado and the cost of credit for Banco do Atacado. When you look at it, Banco do Atacado makes R$ 200 million for each TRI, R$ 300 million, it has that regularity. this TRI goes up from 200 to 300, to 500 approximately, right? It was a specific case, but we can be making credit in the middle, which is also from the attack bank, and when you do certain modalities, you also call provision in advance. So we have a regularity here, which is natural. Now, if we took that and also what was added to the John Deere bank, which had a slightly higher inadimpliance, is a fact, we would be flat. So, we don't have any problem. The coverage level that we made for this case leaves us absolutely calm, right? So, it is a specific case, they are not cases, and we decided to actually make the provision that we had to make and move forward, turning the page, so that we can continue to grow and with If it were flat, the credit cost would be much higher here, for 3.2% than for 3.3%. So, there is no concern here, our portfolio is growing. And then I also say here, this slide, after talking a lot with Cassiano, who will be here with me in the studio, who is already here, André too, and André likes to say, this... This slide here, this screen, is just good news. I also only see good news here, but I'll comment on one, because there was a specific question about it. So, look down here at the representativeness of the portfolio by stage. Stage 3 falls from 7.9 to 7.7, it could even be a little lower, stage 2 also from 4.6 to 4.5, and obviously stage 1, it grows, which is the portfolio with the highest quality, and which also refers to this here, the restructured portfolio. We have a drop of almost 10 billion. year after year. It's very significant. If you go back to the beginning of 2024, it's over 12 billion. And look, even the cured portfolio has improved. So here, look at the representativeness of this. It's been falling in relation to our total portfolio. Another super important and positive data is also this level of coverage with a guarantee of almost 60% that we reached in the portfolio. So imagine the following, in production we are doing much more than that to have this type of performance here. And in the flat dimple, There's a little note here, a footnote, if we, this deviation is a little bigger for the physical person, basically it was also the case of John Deere, which I also don't see any problem, he has a greater capillarity of equipment financing at different levels. of companies, of agribusiness, right? So, it affects because we consolidate all this, but here we have an absolutely controlled and quiet portfolio for us to follow, tracked and making the business happen and generating more and more revenue. The service service revenue is also another highlight. If we don't have commercial traction, and don't deliver better and better experiences to the clients, right? Adequate models, adequate levels of relationships, we don't do service delivery receipts, which grew by almost 7%. I highlight the cards, almost 14%. Here, in consortium administration, look at the growth, 22.1%. Of course, this product is demanded by clients of different ranks, by legal people, right? When you have a rate, like the one we have today, which is a little higher than 15% of SELIC. It is even more attractive. Fund administration. I draw Abram's attention to these levels of growth, but above all because it reached 1 trillion in volume under management. And here, I also draw attention to credit operations, with this growth of 11%, we continue to be attracted to this business here, and also to our investment bank. Look, the investment bank, it appears here with a quarterly decline of 29.9%. But why? The baseline of the past three was 75% growth. So, when we look at the year-to-date, this year, it comes with a growth of 24.1%. And it's not a divine work. It had investments, team growth, team structure, engaged team, and, naturally, generation of pipeline from all segments of attack, and the middle market as well, in addition to the service of custodian and brokerage that also grow in the TRI and in the year, as you have seen. Operational expenses. Before talking about them, the adjustment in our footprint. we have been moving beyond what was foreseen in the footprint. You can see that this year it was almost 1,259 points, and a year ago, in 12 months, 1,600 points. So we were ahead, which is positive, We are able to do this, I think, with a lot of talent from our team and with a lot of intelligence behind us. And we will continue this trend until the end of the year, and then we will give you a perspective when we talk about Guidance for 2026, what our expectations are for next year. Expenses are growing, 9.6%. But note that we were also asked for this. In terms of staff and administrative expenses, growth is 5.5% and it would increase. If we took the effect of the PLR, which is the result of a higher variable remuneration, we would have a growth of 2.5%. Our expenses are absolutely controlled, and I will draw attention to some details. Without Elopar and Cielo, it would be 8.4% and not 9.6%. But let me give you some data. Also in our complete publication, it is there, If I'm not mistaken, on page 21, we look at operational expenses. Looking at administrative expenses, for example, we consolidate everything. Administrative expenses, year-to-date, in these nine months, and in the year-over-year, they have negative growth. We decrease. Now, if you are curious to look at it line by line, you will notice the following. The expenses, some grow and others decrease, such as facilities, for example, transportation decreases. There is a line that is of technology. The line of technology, if there was no trimester variation, we would also decrease administrative expenses in the quarter. Now, also note the following. In this TRI, The absolute growth was of 140 million reais. To draw your attention to a data, when you look at our numbers, at our balance, we consolidate the connected companies. So when I take, for example, Allelo and Livelo, the growth in administrative expenses is over 20%. So, here it drags up to 140 million reais. I can tell you that a good part is coming from these two companies, because it affects us by equivalence. So, the expenses in here are very controlled. Personal expenses. Cielo did not have an impact on this TRI in administrative expenses. When I go to personal expenses, Cielo also had a growth of around 7% in personal expenses. If I take the variable remuneration and look at the fixed remuneration, which is in the first line of operational expenses, you can see there too, we will see that people's expenses would fall to an index that is perhaps less than 3% if we weren't doing this equivalence of Cielo. So, when we look at this, we have to look at the picture and think that we have equivalences or consolidations that are released here. So, I can tell you very calmly that our expenses are controlled, we naturally had a greater impact, a greater result, which is a cost that we consider positive. And the other side here is that you also adjust all the provisions that you have when we make the collective agreement, which was higher than 5%. It's not even possible to index people's expenses. So, that's what we see here. We see absolutely controlled expenses in the next TRI and forward as well. Now, the holding group, as I had also commented on the first slide, consistent liquid profit, we continue to make a very good profitability. When we look at the year-to-date, 11.4%, the year-over-year, 6.5% growth, an ROI higher than 21%, as I commented with you, and I call attention to the operational result. that guarantees the consistency of the insurance group's result, with the total result growing, this magnitude here, Ieroveria 13%, the operational result 10.2%, the financial 18%, but the growth of the insurance group is very consistent and it is also not a divine work. All customer segments, practically all lines have been growing, delivering positive variations year-on-year, but not only here, within our customer segments, but also with all distribution channels that the Group Segurador has, with brokers, digital channels. Ivan drew attention to this now in our collective interview as well. And our technical provisions reach the level of 435 billion, with growth higher than 10.5%. I'm going to a final line here of my presentation, folks. Our capital, even growing the credit card in this way, it grows the main 30 BIPs to 11.4% and the level 1, it grows 40 BIPs to 13.4%, as you could see. Our guidance, I talk a little about it here. Literally, if you look at that, we should walk, in the year, when we close this TRI, into the guidance, but in the higher interval, in all items, including expenses, taking into account everything I told you. So, look, the credit card, for example, From 4 to 8. We are growing 9.6. If you go there, in our presentation of results of the fourth quarter of 2024, you will find that we have grown the portfolio well, 981 billion. If you take the portfolio, which today is 1 trillion and 34 billion, and you say, I'm going to put 16 billion to make a round account, here, of growth 981, the baseline takes us to 7.1. So, I would say that we will grow between 7 and 8, a little more, perhaps, tending to 7, but with consistent growth in here. And also, liquid financial margin at the upper interval, and so on, for each of the topics, all at the upper margin of our guidance. We will deliver the guidance no final desi desi trimestre balanço rápido do nosso projeto transformação que a gente vai fazer um balanço um pouco mais acurado quando a gente fechar o ano né a gente vem evoluindo muito bem em todos os quesitos de pessoas físicas aqui com cada um dos segmentos Bradesco principal encerrou setembro com 41 escritórios expandindo I'll talk a little bit more about that. I've already talked about the footprint, surpassing expectations. We launched Global Solutions and enabled the platform for 100% of our clients to attack. It's our cash management. We already have more than 11,000 people working with Enterprise Agility within our organization and advancing well and fast here. And with everything we've been doing at TI, with the intensive use of GNI, our productivity in development has grown 109% this year. Looking forward to the next TRI and also to the next year, we have here, I will draw your attention to four topics, without going into each one of these items here of our mandala. First, the principal. A gente deve fechar o ano com 300 mil clientes aproximadamente, com 62 escritórios em quase 40 cidades do Brasil, e o Prime, que vem evoluindo no seu velho proposition, já com 3 milhões de clientes, talvez um pouquinho mais do que eles. A gente já tem mais de 14 bilhões de clientes que são eminentemente digitais, não usam mais pontos físicos para atendimento, e eles estão também sendo suportados pelo nosso Bradesco Expresso, que... Cresceu e tem mais de 39 mil correspondentes bancários em todo o Brasil, em todas as cidades do Brasil, nos mais de 5.600 municípios. No SMI, a gente viu a atração que a gente tem. Eu tinha falado no tripassado desse novo app. A gente expandiu o app, por exemplo, para pequena e microempresa. They hire the PRONAMP and PROCREDIT directly from the app, with a new and very fluid experience. And obviously, our entire segmentation process has shown itself to be effective, with a growing penetration in this segment here. And I call attention to another topic down here, in this box of our theme of culture, of Sobradesco. Last year, we showed that we had done the research with 74% of participants with high engagement. This year, 84% of all our collaborators engaged, responded to our research and showed the evolution that we have here in this regard, in addition to all the other initiatives that we have in each of the areas. Two pieces of information before I finish my presentation and we go to Q&A. I have always talked about GNI, and this time I said, guys, I'm not going to talk anymore, I keep talking, talking, talking in all the forums I go to and here in the results presentations, and I said, let's put Bia to talk. And then I was surprised when people brought me the video, because they put an avatar But it's the last time you're going to see this avatar. In the next video, I'm going to bring another avatar, much more sympathetic than this avatar that I'm going to tell you about. It's a minute long video, it's not much more than that. Let's watch this video and I'll be right back with the conclusions here. Please. The digital transformation, through Enterprise Agility and the massive leverage of GNI, is generating impressive results. Look here, I highlight four fronts of progress here for you. Increased productivity, hyper-personalization, risk management and also the engagement and customer journey. We have already achieved an increase in productivity of 109% this year and we have built a new income model with a drastic reduction of 95% in the time of creation and an expressive increase in accuracy. Simultaneously, we strengthen safety with sophisticated biometrics and offer hyper-personalized experiences. And in customer service? Total engagement with 90% de retenção no chat da Bia e inovações como Pix por Voz. Aqui no Bradesco, a GNI vai além da tecnologia. Ela é parte integrante da nossa transformação a serviço do nosso cliente e negócio. É isso aí, pessoal. Muito obrigado. Agora é com você aí no estúdio, Marcelo do Mundo Real. Até mais. Valeu, gente. It's hard, isn't it, guys? But the next one doesn't come with this avatar, let's do it with another one. I'm going to my conclusions here, so I reaffirm what I said at the beginning of the presentation, of our commitment to increase profitability. We are approaching the return on capital costs, but step by step, as we said from the beginning of our plan. receitas como principal driver de aumento da rentabilidade com despesas controladas, carteira de crédito com crescimento equilibrado, e priorizando sempre retorno ajustado ao risco. Apetito ao risco, que eu tinha falado lá no final do ano passado, continua moderado, But, well, indexes in the market, wallets and safras, absolutely under control, right? So, we're very interested in Run the Bank, in Change the Bank, and confident that we're going to make a good TRI at the end of the year, and we're also going to make good TRIs next year, in 2026. Now, I invite you to be here in our Q&A with my colleagues Cassiano Scarpelli, who is the CFO, and our colleague André Carvalho, the director of RI. André, it's with you, my dear.

Thank you. Thank you, Marcelo. Thank you, Cassiano. It's a pleasure to be here with you. Good morning to everyone. I would like to remind everyone that our CEO of the insurance group, Ivan Gontijos, is here participating remotely. And in relation to questions, anyone who wants to send us questions, please. Thank you, André. Good morning, Noronha. Good morning, Cassiano.

Good morning to everyone. I would like to talk a little about costs and this review of Footprint, which you have accelerated a lot in the last two years, closing much more points than was expected, both in 24 and now in 25, I think you have accelerated beyond the goal. So my question is about 26, if you can imagine this same closing rate, Or is the trend that the focus changes to start collecting gain of operational efficiency for you to walk towards the goal of those 40%, which I think was 8%, 8% less than 48% at the time when you were announcing your strategic plan. And then, the second question in terms of costs as well. You mentioned Elo and Alelo growing 20% year-on-year, even more than that in costs. Can you imagine that this is the pace of pace that you continue forward? Is there any one-off, any specific situation for you to be accelerating costs, specifically in these two companies? Thank you.