With a nationwide presence and capillarity, we are active in every municipality in the country with more than 10,100 branches, service points (PAs) and electronic service points in companies (PAEs) – an increase of over 15% in 2016 in function of the acquisition of HSBC Brasil –, in addition to almost 40,000 correspondents which, together with its digital channels (self-service network, telephone, internet and mobile telephone), provide ease of access and banking inclusion for the entire population.
We provide a broad portfolio of products and services, such as checking and savings accounts, loans, the issue and management of credit cards, consortia, receipt and processing of payments, insurance, supplementary pensions and capitalization bonds, investment banking, commercial leasing, asset management and intermediation services, as well as security brokerage services for over 26 million clients.
Worthy of note are the digital channels, which accounted for 94% of transactions in 2016, 41% of which through Bradesco Celular (more than 5.4 billion transactions) – an increase of 49% compared with 2015. Moreover, we are the only financial institution in Brazil that offers access to accounts via applications without incurring data package charges from the carrier.
PRESENT IN EVERY MUNICIPALITY IN THE COUNTRY, WE PROVIDE A WIDE RANGE OF PRODUCTS AND SERVICES FOR 73 MILLION CLIENTS
Relationship Channels – Active Users By digital Channel (millions of Users)
11% of our clients are exclusively digital
Electronic Self-Service Channels Gain Preference (%)
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Electronic and digital platforms account for 94% of bank transactions
Service Network
Total
Retail and Prime branches
5,314
Service points1
3,821
Electronic service points (PAEs)
1,013
Bradesco Expresso
38,430
ATMs2
56,110
1. Service points in companies and municipalities.
2. Encompasses the Bradesco and Banco24Horas networks.
PRESENCE OF BRADESCO X COMPETITION
55% 3,064 municipalities without private competitors
23% of population with bancarization potential: 34 million
186 number of
service points
12% GDP: R$695 billion
1.229 Number of branches
Our culture of quality and constant innovation, our determination and pioneering spirit are underpinned by a work force of over 100,000 employees – an excellent technical and professional body that was reinforced by the entry of 20,280 HSBC employees, the result of our largest acquisition ever.
We seek to strengthen our positioning in sustainability by boosting our governance bodies. In 2016, we were once again listed on the New York stock exchange’s Dow Jones Sustainability Index (DJSI) in the Dow Jones Sustainability Emerging Markets portfolio, as well as the BM&FBOVESPA Corporate Sustainability Index (ISE). We are also a signatory to the Global Compact, to the Equator Principles, the Principles for Sustainable Insurance (PSI) and the Principles for Responsible Investment (PRI).
Market leader, The Bradesco Seguros Group promotes corporate social and environmental awareness measures
Bradesco Seguros Group
The insurance arm, Bradesco Seguros Group, is the market leader in Brazil and in Latin America, supported by strategic differentials such as multiple product lines and a strong nationwide presence. It operates through 5,314 bank branches, supported by 11,000 dedicated brokers, 22,000 active market brokers, in addition to 38,000 banking correspondents and 7.6 million clients via its digital channels. The group has 200 facilities, including service units, offices and branches.
Aligned with the directives of our Strategic Sustainability Policy, Bradesco Seguros Group has promoted measures to raise awareness of corporate social and environmental questions and encouraged conscious water and energy consumption and waste management.
BRADESCO SEGUROS GROUP COMPANIES
BRADESCO AUTO/RE COMPANHIA DE SEGUROS S.A.: specialized in auto insurance and basic property insurance.
BRADESCO CAPITALIZAÇÃO S.A.: the largest private portfolio in the capitalization segment, some of its products invest in and promote social and environmental actions and in combating breast cancer.
BRADESCO SAÚDE S.A.: administers health and dental plans with an extensive accredited network. In 2016, the area had 3.7 million policy holders.
BRADESCO VIDA E PREVIDÊNCIA S.A.: develops and administers retirement, pension, savings and life insurance plans. In supplementary pensions, the company has 2 million private participants and around 40,000 company plans. More than 10 million people and 70,000 companies are covered by the plans.
BSP EMPREENDIMENTOS IMOBILIÁRIOS: works with the administration, rental and acquisition of corporate properties, with a portfolio of more than 750 units.
MEDISERVICE: dedicated to the operation of postpaid health plans with services based on management concepts.
BRADESCO DENTAL: dental plans managed by OdontoPrev.
MULTIPENSIONS: provides exclusive retirement plans for sponsoring companies.
SERVICE AND PRODUCT DISTRIBUTION AND SUPPORT IN DIVERSE CHANNELS
200 PREMISES (including service units, offices and branches)
38,000 banking correspondents
22,000 active brokers (market)
5,314 bank branches
11,100 ATMs (outside branches)
7.6 million million internet users
11,000 dedicated
brokers
POLICIES ISSUED, PENSION PLAN CONTRIBUTIONS AND CAPITALIZATION REVENUES
Adjusted result (Millions of R$)
Pro forma
12M16
12M15
Variation 12 M (%)
12M16
12M15
Variation 12 M (%)
Life and Pension Plans
37,381
33,766
10.7
38,618
36,270
6.5
Health
22,127
19,290
14.7
22,127
19,289
14.7
Auto/P&C
5,786
5,794
(0.1)
5,786
5,794
(0.1)
Capitalization Bonds
5,863
5,507
6.5
6,109
6,030
1.3
Subtotal
71,157
64,357
10.6
72,639
67,383
7.8
DPVAT
262
256
2.3
262
256
2.3
Total
71,419
64,612
10.5
72,901
67,639
7.8
Shareholders’ Equity
27,269
20,837
30.9
27,269
21,711
25.6
Net Income
5,551
5,289
5.0
-
-
-
ROAE*
23.0%
24.2%
(1.2) p,p
-
-
-
Financial Assets
242,063
191,921
26.1
242,063
206,897
17.0
Technical reserves
223,342
177,835
25.6
223,342
192,226
16.2
* From 1Q16, we started calculating the return on a linear basis. To permit comparability we recalculated the period 12M15.
TRENDS
2016 BRADESCO HIGHLIGHTS
Presence: 3,064 municipalities with no private competitors
94% of client transactions undertaken via digital channels
Greater commercial efficiency by means of Customer Relationship Management (CRM), with a positive impact on service revenues, particularly in checking accounts
INTEGRATION
2.9 million clients had used the digital channels by December 31, 2016
5.4 million clients migrated, of which 2.9 million had used the digital channels by December 31, 2016
247.3 million transactions conducted via internet and mobile channels up to December 31, 2016
R$135 billion in credits, portfolios, securities and assets migrated
100% of HSBC Brasil mobile users have already migrated
6,000 calls a day to the Welcome Center
Rebranding of 851 branches in one weekend
7,900 interactions with former clients in the social networks
The rapid and effective provision of financial and insurance-related solutions, products andservices, primarily through banking inclusion and the promotion of social mobility, contributing to sustainable development and building lasting relationships that generate value forshareholders and for society as a whole.
Vision
To be recognized as the best and most efficient financial institution in the country and for active involvement in promoting banking inclusion and sustainable development.
Values
The client as the reason for the Organization’s existence
Transparency in allinternal and external relationships
Respect for the competition
Belief in the value of people and their capacity to develop
Respect for human dignity and diversity
Social and environmental responsibility and the promotion of sustainable development
Commitment to continuous improvement in the quality of customer care, products and services
OUR VALUES ATTEST THE INTERNAL COMMITMENT TO DIVERSITY AND TRANSPARENCY, THE BELIEF IN THE INDIVIDUAL’S CAPACITY TO DEVELOP AND THE DETERMINATION TO DRIVE SUSTAINABLE DEVELOPMENT INITIATIVES
PROFESSIONAL PRINCIPLES
Our principles are set forth in the Bradesco Organization Code of Ethical Conduct, which guides the conduct of managers, employees and third parties in promoting adoption of the highest standards of integrity and transparency.
Insurance, supplementary pension plans and capitalization bonds
Banco Bradesco S.A.
Bradesco Seguros S.A.
Banco Bradescard S.A.
Bradesco Auto/RE Cia. de Seguros
Banco Bradesco Cartões S.A.
Bradesco Capitalização S.A.
Banco Bradesco Financiamentos S.A.
Bradesco Saúde S.A.
Bradesco S.A. Corretora de TVM
Bradesco Vida e Previdência S.A.
Ágora Corretora de TVM S.A.
OdontoPrev S.A.
BRAM – Bradesco Asset Management S.A. DTVM
Mediservice Operadora de Planos de Saúde S.A.
Bradesco Leasing S.A. Arrendamento Mercantil
Atlântica Companhia de Seguros
Bradesco Administradora de Consórcios Ltda.
Bradesco Argentina de Seguros S.A.
BEM DTVM
PRODUCTS
Savings
Insurance
Checking accounts
Consotria
Capitalization bonds
Loan operations
Commercial leasing
Supplementary pension plans
Investment banking
Payment receipt and processing
Asset management and intermediation services
Credit card issuance and management
Securities Brokerage
Custody
Service points
Branches
5,314
PAS + PAEs1
4,834
Bradesco Expresso
38,430
Overseas Branches/Subsidiaries
14
External ATMs – own network
186
Others2
11,832
Total service points
60,610
1. PAs: result of the consolidation of PABs (Posto de Atendimento Bancário), PAAs (Posto Avançado de Atendimento) and Exchange Bureaus (Postos de Câmbio), in accordance with CMN Resolution No. 4,072/12. PAEs are ATMs located in a company.
2. . Includes 10,972 assisted points of the Banco24Horas network (96 points shared between the Bradesco network and the Banco24Horas network), 797 Bradesco Promotora de Vendas points and 63 Losango posts.
MORE THAN 30,000 MANAGERS WORKING ON MULTIPLE SERVICE PLATFORMS
BRANCHES PROVIDE SERVICES FOR MULTIPLE SEGMENTS
DIGITAL PLATFORMS
Remote service in accordance with profile
Invitation for clients to migrate to the digital platform
INTEGRATED NETWORK
BRANCHES
Focus on business
Consulting and advice
Asset management
SERVICE POINTS
Focus on business
Consulting and advice
Possible specialization in niches and segments
Self-service
FLAGSHIPS
Communication of concepts
Space for trial
Spaces for sharing
DIGITAL PLATFORM
Remote service for segmented clients (Prime and Exclusive)
BRADESCO EXPRESSO
Transactional support and routing of businesses/deals
DIGITAL PLATFORM
STRATEGY
In 2016, the economic conjuncture was challenging both internally and externally, with a prolonged deceleration that had a negative impact on Brazilian industry. Once again there was a retraction in Gross Domestic Product (GDP), which deepened the internal crisis and caused further deterioration in the business environment, resulting in lower productivity, a retraction in credit and higher unemployment and delinquency rates.
In 2017, however, there are signs of a possible recovery in levels of activity, mainly in important sectors such as industry and agriculture. It is expected that the basic Selic interest rate will continue to drop, with inflation remaining around the target of 4.5%. The country is seeking to recuperate the confidence of overseas investors and its dynamism, as well as improving social and economic efficiency. This movement should be favored by the promotion of a fiscal adjustment, with the approval of the proposal of the constitutional amendment to establish a ceiling on spending and the introduction by the government of important discussions in the National Congress, such as social security reform, alterations to labor laws, privatizations and concessions.
With our sights on the future and attentive to the opportunities emerging with the recovery of the economy, in the medium and long term we have consolidated our business structures. We continue to be one of the major investors in technology in the country, driving operational efficiency with a view to improving services for our more than 73 million account holders, as well as clients who do not have accounts.
Segmented by profile, clients benefit from the large scale distribution of products and services that are adapted to the needs and features of regional economies. In order to grow and consolidate our activities, we have adopted diverse measures to promote the gradual integration of the physical and digital environments, driving growing convergence among our clients. We serve four generations of clients and seek to provide solutions in accordance with the expectations and phase of life of each one.
As a complement to this local focus and to provide support for Brazilian companies and their needs overseas, as well as for overseas investors and companies interested in Brazil, we operate internationally, maintaining a presence in strategic markets such as New York, London, Hong Kong, among others.
Our sources of revenue are balanced and insurance plays an important role in mitigating volatility in results, as do services, which are gaining importance due to their diversity. Credit activity should resume growth in the coming years as the economy recovers.
It was this vision that drove our acquisition of HSBC Brasil in 2016, consolidating our share in the Brazilian market. In addition to the commercial gains generated by business with these new clients, the operation reinforces our human capital and will result in gains in synergy in operational processes, reduced operational expenses and funding costs and a higher return once the adjustments have been undertaken.
WE SEGMENT OUR CLIENTS BY PROFILE IN ORDER TO PROVIDE THEM WITH PRODUCTS AND SERVICES TAILORED TO THEIR NEEDS AND TO THE ECONOMIC CHARACTERISTICS OF EACH REGION
PRODUCT LINE BASED ON CLIENT PROFILE
INDIVIDUAL
CORPORATE
From R$5 million available for investment
Annual revenues of over R$250 million
PRIME: Monthly income from R$10,000 or from R$100,000 available for investment
COMPANIES: Annual revenues from R$30 million to R$250 million
RETAIL (exclusive): Monthly income from RS4,000 to R$10,000 or investments from R$40,000.
RETAIL (classic): Monthly income from R$4,000
RETAIL (corporate): Annual revenue up to R$30 million
Bradesco Expresso and PA
CORPORATE INTEGRITY PROGRAM
We are committed to:
Conducting business and developing our diverse relationships based on ethics, integrity and transparency, which are the pillars of our organizational culture, whose values and principles are set forth in the Corporate and Sector Codes of Ethical Conduct and supported by senior management
Preventing and combating corruption in all its forms, in particular bribery
These commitments are sustained permanently by the Corporate Integrity Program, which corresponds to set of mechanisms and measures comprising the Codes of Ethical Conduct, the Corporate Anti-Corruption Policy and Standard and other standards, as well as the procedures, processes and controls established therein, aimed at detecting, preventing and remediating any harmful acts of corruption and bribery, including fraud against public administration.
The program, supported by the Ethical Conduct Committee and Board of Directors, sets forth the guidelines, responsibilities, procedures and controls to be employed with respect to presents, gifts and entertainment, donations, sponsorship, third parties and due diligence, tenders involving public authorities, political contributions, relations with public agents, reports of violations and non-retaliation against those making such reports in good faith, in compliance with the laws and regulations applicable in Brazil and in the countries in which the bank has business units.
To ensure the greater effectiveness of the Corporate Integrity Program it is continually assessed and improved to promote alignment between governance and controls and domestic and international anti-corruption best practices. To this end, in 2016 we concluded a new corruption risk mapping exercise and reassessment in all units, including those overseas. Face-to-face anti-corruption training was provided for senior management, employees in the areas with higher exposure to risk and for third parties. An interactive talk on reputation was organized for an exclusive audience on a pilot basis. With respect to ethical conduct, a series of training videos was made available, including a 7-part series on choices, the video clip Melhor Lugar (Best Place); and the training video Liberdade e Respeito (Freedom and Respect). For 2017, a series of measures aimed at reinforcing all the pillars has been programmed, including the implementation of new controls related to dealings with public agents, third-parties, donations and sponsorships, as well as the implantation of an automated risk monitoring and control system based on specific metrics and indicators, and innovative training programs based on a new methodology. G4-57 | G4-SO3 | G4-DMA Anti-corruption | G4-DMA Social compliance
During 2016 there were no indications of non-compliance with the Corporate Anti-Corruption Policy and Standard. All reports of ethical breaches were investigated and the appropriate disciplinary measure applied in each case. Reports involving discrimination and psychological harassment are disclosed in the section on personnel management.
Procedures and controls are constantly aligned with best Brazilian and international practices
PREVENTING AND COMBATING MONEY LAUNDERING AND FINANCE FOR TERRORISM PROGRAM
he Corporate Preventing and Combating Money Laundering and Finance for Terrorism program is based on specific policies, standards, procedures and systems that establish guidelines for preventing and identifying the use of our structure and/or products and services to launder money and to finance terrorism. This program is overseen by the Preventing and Combating Money Laundering and Finance for Terrorism Executive Committee, which is responsible for ensuring its effectiveness and determining the need to align procedures and controls with established regulations and best Brazilian and international practices. Suspicious or atypical cases identified are channeled to the Suspicious Transaction Assessment Commission, with representatives from various company areas, which evaluates the need to report the transaction to the regulatory authorities.
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