Banco Bradesco SA Q4 FY2024 earnings call

• Transformation efforts: Continued expediting transformation, reduced layers, hired C-levels, formed transformation office with 800+ people. - Digital and product: Bradesco Expresso improved customer experience, grew payroll, insurance sales, and correspondent base; BRAM AUM reached BRL122 billion. - Technology and AI: Implemented GenAI BIA with 90% resolution, migrated 79% of applications to cloud, acquired Kunumi for productivity gains. - Footprint review: Reviewed 1,385 points of service, grew customer base by over 2 million clients, 99% of transactions via digital channels.

Net income was BRL5.4 billion in Q4 2024, a 37% growth, and BRL19.6 billion in 2024, a 20% growth. Total loan portfolio exceeded BRL980 billion, up nearly 12% y-o-y. Individual loans grew 13.3%, micro/small/medium companies portfolio grew 28%. Credit cards saw 5.1% growth with high income at 14.5% growth. Fee income was BRL10.3 billion, up 13.7% y-o-y. Insurance company had total revenue BRL121 billion, up 13.6% y-o-y, net income BRL2.5 billion in Q4 and BRL9.1 billion in 2024 with ROAE 21%. Revenue contribution: Loan portfolio growth was significant, fee income grew due to traction, and insurance contributed via revenue and net income growth.

• 2025 guidance: More cautious due to macro scenario and effects of 4,966 and higher stake at Cielo. Base scenario 70%, more cautious scenario 30%. Focus on controlled risk and continued transformation investments. NII net of provisions expected to grow.

• Macro economic uncertainty: Cautious guidance reflects concerns over macroeconomic scenario, including interest rate impacts. - Credit risk: Need to maintain controlled risk appetite, especially in mass market and different loan segments to ensure risk-adjusted returns.

Q: About market NII and hedge policy A: Cassiano mentioned arbitration was key in Q4, and they aim for market NII close to neutrality in 2025, with a team led by Roberto Paris managing trading operations.

Q: About capital and CET1 A: Marcelo stated they are comfortable with capital, CET1 has a buffer, and they have room to grow profitability, leading to higher CET over time.

Q: About provisions and NII growth A: Marcelo explained controlled risk appetite, growth in specific loan segments with good risk-adjusted returns, and Cassiano highlighted improvements in risk management and repricing.

Q: About expenses and risk trade-off A: Cassiano said they remain committed to investments despite cautious scenario, focusing on efficiency gains and productivity improvements.

Q: About IFRS impact and normalized return A: Cassiano explained IFRS reclassification impact on securities and ROE goals, aiming for over delivery and continued progress towards normalized returns.

Q: About restructuring charges and capital A: Joao Carlos Gomes and Cassiano discussed restructuring charges related to footprint review and capital adjustments due to IFRS reclassification.