Banco Bradesco - 2005 Earnings Results

SAO PAULO, Feb. 22 /PRNewswire-FirstCall/ -- Banco Bradesco (NYSE: BBD) (Bovespa: BBDC3 BBDC4) (Latibex: XBBDC) posted Net Income of R$ 5.514 billion in 2005 (equivalent to EPS of R$ 5.63), compared to the R$ 3.060 billion Net Income recorded in 2004 (equivalent to EPS of R$ 3.22), an 80.2% increase. Return on Average Stockholder's Equity (ROAE) stood at 32.1% in 2005 (22% in 2004). Net income in 4Q05 amounted to R$ 1.463 billion, which represents a 35.3% annualized ROAE (36.5% in 3Q05). Total Assets reached R$ 208.7 billion, with a R$ 23.8 billion or 12.8% increase in 2005 and R$ 6.8 billion or 3.4% increase in 4Q05.

In 2005, 32% of Bradesco's Net Income was originated by Loans, 29% by Insurance, Pension Plans and Savings Bonds, 26% by Fee Income and 12% by Securities.

Adjusted Net Interest Income reached R$ 16.548 billion, up by 25.1% in the year, and by 6.1% in the quarter (4Q05 vs. 3Q05). Fee Income grew by R$ 1.525 billion in the year or 26.2%, totaling R$ 7.349 billion. In the quarter, Fees expanded by R$ 92 million, or 4.8%, reaching R$ 2.010 billion.

Bradesco's Efficiency Ratio for the accumulated 12-month period continues to present a constant improvement, standing at 55.5% in December 2004, 48.1% in June 2005, 45.7% in September 2005 and, finally, 44.8% in December 2005.

Bradesco's Market Capitalization as of December 31, 2005 reached R$ 64.7 billion, corresponding to a 126.6% jump in the year and to a 25.4% increase in the quarter, variations significantly higher than the Ibovespa's which during the same period evolved by 27.7% and 5.9%, respectively.

According to Bradesco's CEO, Mr. Marcio Artur Laurelli Cypriano, "2005 recorded the highest Net Income of the Bank's 62-year-old history. I would highlight the strong growth of our loan portfolio, the consolidation of our customer segmentation process, Grupo Bradesco de Seguros' (Insurance Activities) better performance and the strong cost control as the main drivers for this result. Our stockholders will have received more than R$ 1.8 billion as Interest on Own Capital and Dividends and our market value will have surpassed the R$ 64.7 billion landmark, more than doubling from last year's."

This Press Release may include information on future events. These considerations may reflect not only historical facts, but also the desires and expectations of Bradesco's management. Words such as "anticipates," "desires," "expects," "foresees," "plans," "predicts," "projects," "wishes" and similar expressions are intended to identify statements, which necessarily involve known and unknown risks. Known risks include uncertainties, which are not restricted to the impact of the competitive nature of prices and services, the acceptance of services by the market, service transactions of Bradesco and of its competitors, regulatory approvals, currency fluctuations, changes in the range of services offered and other risks described in Bradesco's reports. This Press Release is valid as at this date and Banco Bradesco assumes no obligation whatsoever to update this release, either as a result of new information and/or future events.

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