Banco do Brasil S.A. (OTCPK:BDORY) Q1 2021 Earnings Conference Call May 7, 2021 10:00 AM ET Company Participants Fausto Ribeiro - Chief Executive Officer Ricardo Forni - CFO, Financial VP and IRO Carlos Bonetti - Head of Investor Relations Daniel Maria - Head of Investor Relations. Carlos Bonetti - Vice President for Risk and Credit Risk Conference Call Participants Mario Pierry - Bank of America Jorg Friedemann - Citibank Pedro Leduc - Itaú BBA. Domingos Falavina - JP Morgan Carlos Gomez - HSBC Tito Labart ...

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Financial Data and Key Metrics Changes - In Q4 2020, Banco do Brasil's net income grew by 6.1% compared to the previous quarter, with an adjusted net income of BRL 13.9 billion, resulting in a return on equity (ROE) of 12% [63] - The pre-tax and pre-provision earnings (PPOP) reached BRL 42.4 billion, growing 5.9% year-over-year [63] - The expanded loan portfolio increased to BRL 742 billion, reflecting a 1.5% growth from Q3 2020 and a 9% increase from the end of 2019 [64] Business Line Data and Key Metrics Changes - The individuals' loan portfolio grew by 6.7% compared to 2019, with payroll deductible loans increasing by 15.2% [65] - The SME segment saw a significant growth of 25.6% year-over-year, largely due to participation in government aid programs [65] - Agribusiness loans increased by 4.3% compared to 2019, primarily driven by rural credit [66] Market Data and Key Metrics Changes - The credit forbearance portfolio amounted to BRL 130.1 billion, serving 2.3 million customers, with 95% of operations rated AA to C [67] - The non-performing loans (NPL) over 90 days stood at 1.9%, lower than the national average of 2.1% [80] - The net interest income (NII) rose by 5.1% to BRL 56.7 billion, benefiting from reduced funding costs [82] Company Strategy and Development Direction - Banco do Brasil is focusing on digital transformation and customer-centric strategies, emphasizing the importance of both digital and personal interactions [6][7] - The bank aims to reduce administrative expenses by BRL 3 billion annually, targeting a 10% reduction in recurring expenses [40][87] - The strategy includes enhancing agribusiness operations with 2,000 specialized professionals and 18 dedicated branches [37] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges of 2020 but highlighted the bank's strong performance and resilience, particularly in loan growth and credit quality [60] - The bank anticipates a robust growth in the loan portfolio, expecting an increase of 8% to 12% in 2021 [95] - Management emphasized the importance of sustainability and social responsibility as key pillars of the bank's strategy moving forward [54][59] Other Important Information - Banco do Brasil's CET1 ratio reached 13.62%, indicating a strong capital base to support future growth [93] - The bank plans to invest heavily in digital platforms, aiming for 17 million paperless customers by 2025 [59] - The bank's ESG commitments include reaching BRL 20 billion in ESG funds by 2025 and achieving 100% renewable energy consumption by 2030 [56][57] Q&A Session Summary Question: Inquiry about adjusted fee income figures - Management did not provide a specific pro forma number for adjusted fee income but acknowledged the challenges in the competitive environment affecting fee income [100][103] Question: Capital allocation and CET1 target - Management confirmed that the CET1 target remains at 11%, with plans to utilize surplus capital primarily for loan performance [112][114] Question: Decision to continue offering renegotiated loans - Management explained that the decision to continue renegotiations was due to regulatory changes and the low risk associated with government-backed loans [116][117]

#interna EARNINGS RELEASE 3Q For further info Point your mobile for MD&A 3Q20 #interna | --- | --- | |--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | CLAI MER DIS | Although these references and statements reflect the management's belief, they also involve estimates and unforeseen r ...

Banco do Brasil SA (OTCPK:BDORY) Q3 2020 Earnings Conference Call November 6, 2020 8:00 AM ET Company Participants Andre Brandao - President, CEO & Director Daniel Maria - Head, IR and GM of IR & Sustainability Conference Call Participants Mario Pierry - Bank of America Merrill Lynch Juan Recalde - Scotiabank Nicolas Riva - Bank of America Merrill Lynch Marcos Assumpcao - Itaú Natalia Corfield - JPMorgan Chase & Co. Operator Good morning, ladies and gentlemen, and thank you for waiting. Welcome to Banco do ...

#interna EARNINGS RELEASE 2Q #interna #Pública | --- | --- | |--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | CLAI MER DIS | Although these references and statements reflect the management's belief, they also involve estimates and unforeseen risks. Consequently, results may differ f ...

Banco do Brasil S.A. (OTCPK:BDORY) Q2 2020 Earnings Conference Call August 7, 2020 9:30 AM ET Company Participants Daniel Maria - Head, IR & Sustainability Conference Call Participants Nicolas Riva - Bank of America Merrill Lynch Henrique Navarro - Santander Neha Agarwala - HSBC Operator Good morning, ladies and gentlemen, and thank you for waiting. Welcome to Banco do Brasil Second Quarter of 2020 Earnings Conference Call. This event is being recorded. [Operator Instructions] This conference call is also b ...

Financial Data and Key Metrics Changes - The adjusted net income for Q1 2020 was BRL 3.4 billion, a decrease of 20% compared to Q1 2019 [3][4] - Net interest income (NII) increased by 9.9% to BRL 14 billion [3][4] - Fee income reached BRL 7.1 billion, up 4% year-over-year [3][4] - Administrative expenses grew by 2.7%, reaching BRL 7.8 billion, which is below inflation [3][4] - The return on equity was 12.5%, and return on assets was 0.8% [4] Business Line Data and Key Metrics Changes - The loan portfolio increased by 5.8% year-over-year and 6.5% compared to December 2019, with a BRL 45 billion increase attributed to FX devaluation [9][10] - The individual loan portfolio grew by 9.6%, with payroll loans increasing by 16.4% and consumer finance loans rising by 36% [10][11] - The SME portfolio showed significant growth, with a focus on working capital [11][12] Market Data and Key Metrics Changes - The cost of risk increased from 3.15% to 3.41% due to credit provisions of BRL 2 billion [6][14] - The non-performing loans (NPL) ratio at 90 days was 3.17%, below the industry average of 3.20% [14] - The coverage ratio reached 200%, indicating strong provisions against potential losses [14] Company Strategy and Development Direction - The company is focusing on digital transformation, with significant investments in digital solutions and customer experience [18] - The strategy includes maintaining a strong relationship with customers, particularly in the SME and agribusiness sectors [45][46] - The bank aims to adapt to changing market conditions while ensuring liquidity and capital preservation [20][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of COVID-19 on operations and expected further challenges in the coming quarters [3][24] - The bank is prepared for potential increases in NPLs but believes its portfolio is more defensive compared to previous crises [37][40] - The guidance for credit provisions was suspended until more clarity on market conditions is achieved [24] Other Important Information - The bank inaugurated its first solar plant, contributing to cost efficiency and sustainability [17] - The CET1 ratio remained stable, with a focus on maintaining capital adequacy [18] Q&A Session Summary Question: Impact of mark-to-market on equity - Management confirmed that mark-to-market impacts were primarily from public securities, with no major concerns regarding credit quality [26][27] Question: NIM and NII expectations - Management indicated that further benefits from funding costs are expected, with a gradual increase in NII anticipated [29][30] Question: Asset quality and provisions - Management noted that the current cost of risk is manageable, and the bank is well-prepared for potential increases in NPLs [36][39] Question: Loan growth outlook - Management expects loan growth to be consistent, particularly in the SME and individual segments, despite market challenges [44][46] Question: Participation in Central Bank bond purchase program - Management stated that it is too early to determine participation in the program, but liquidity measures are being closely monitored [48][49] Question: Future capital ratios and mark-to-market impacts - Management emphasized a conservative approach to capital management, with expectations of maintaining adequate capital ratios [55][56]

Financial Performance - Adjusted net income was R$34 billion, a decrease of 201% compared to 1Q19[5] - Net Interest Income (NII) increased by 99% compared to 1Q19, reaching R$140 billion[5] - Fee income increased by 40% compared to 1Q19, totaling R$71 billion[5] - ALL Expenses increased significantly by 633% compared to 1Q19, reaching R$55 billion[5] Loan Portfolio - The total loan portfolio increased by 42% from March 2019 to March 2020[25] - Individuals loan portfolio increased by 96% from Mar/19 to Mar/20[29] - Companies loan portfolio increased by 59% from Mar/19 to Mar/20[31] - Agribusiness loan portfolio increased by 14% from Dec/19 to Mar/20[35] Credit Quality - NPL (Non-Performing Loans) +90 days for the total portfolio increased from 300% in Mar/19 to 320% in Mar/20[43, 44] - Coverage Ratio for the total portfolio decreased from 2139% in Mar/19 to 1938% in Mar/20[45] Digitalization - Transactions made through the App and Internet reached 845% in 1Q20, an increase of 37% compared to 1Q19[80]

Financial Data and Key Metrics Changes - Banco do Brasil reported a net interest income (NII) of BRL 53.1 billion in 2019, reflecting a 6.4% increase compared to 2018 [4] - The adjusted net income reached BRL 17.8 billion, marking a 32% growth year-on-year [5][6] - Administrative expenses grew by 2.8%, which is below inflation, totaling BRL 31.5 billion [5][15] - The return on equity improved to 17.3% in 2019 from 13.9% in 2018 [7] Business Line Data and Key Metrics Changes - Fee income increased by 6.4% year-on-year, amounting to BRL 29.2 billion [4][14] - The individual loan portfolio's contribution to revenues grew from 49% to 52.5% [10] - The loan portfolio for retail operations increased from 36.7% to 41.1% of the total portfolio [19] Market Data and Key Metrics Changes - The non-performing loans (NPL) ratio for the total portfolio decreased to 2.54%, down 20 basis points from the previous quarter [24] - The NPL for individuals reduced to 3.41%, while for companies it decreased to 2.49% [25] Company Strategy and Development Direction - The company is focusing on optimizing its network by reducing traditional branches and opening specialized branches [17] - Banco do Brasil is committed to enhancing its ESG policies and has been recognized for its sustainability efforts [30][33] - The bank aims to grow its retail loan portfolio by 10% to 13% in 2020, while expecting a more stable growth in the wholesale segment [36][37] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in fee income growth due to market conditions and competition [48] - The bank expects to maintain strong operational performance in 2020, with lower legal costs anticipated [41] - Management indicated that the regulatory environment, particularly regarding overdraft interest rates, will have a limited impact on the bank's overall earnings [56][57] Other Important Information - The CET1 capital ratio ended the year at 10.02%, with a commitment to reach at least 11% by January 2022 [28] - The bank's asset management business is under review for potential strategic partnerships to enhance competitive advantage [62][64] Q&A Session Summary Question: Plans regarding the product business and CLO - Management stated that there are no defined plans for the sale or reorganization of the product business, dismissing rumors as speculation [45][46] Question: Fee income growth expectations - Management explained that the anticipated fee income growth is challenging due to the impact of asset management repricing, but they expect to compensate through other business lines [48][49] Question: Impact of overdraft regulation - Management estimated a potential impact of BRL 300 million to BRL 350 million on NII due to new overdraft regulations, but they plan to offset this through growth in other credit lines [56][57] Question: Strategic goals for asset management - Management emphasized that the review of stakes in asset management is strategic, aiming to prepare the institution for a new competitive landscape and enhance global scale [62][63]