Banco Bradesco S.A. (NYSE:BBDO) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 12:30 pm ET


Banco Bradesco S.A. (NYSE:BBDO) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and thank you for waiting. We would to welcome everyone to the Bradesco's Second Quarter 2020 Earnings Conference Call. This call is being broadcasted simultaneously through the Internet in the Investor Relations website, In that address, you can also find the presentation available for download. [Operator instructions]

Before proceeding, let me mention that forward-looking statements are based on the beliefs and assumptions of Banco Bradesco's management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events, and therefore, depend on circumstances that may or may not occur in the future. Investors should understand the general economic conditions, industry conditions and other operating factors could also affect the future results of Banco Bradesco and could cause results to differ materially from those expressed in such forward-looking statements.

Now I'll turn the conference over to Mr. Carlos Firetti, Director and Head of IR.

Carlos Firetti

Hello, everybody. Welcome to our conference call for a discussion of our second quarter results of 2020. We have today with us here in our headquarters our CEO, Octavio de Lazari; our Executive Vice President and CFO, Andre Cano; Vinicius Albernaz, the CEO of Bradesco Seguros; Leandro Miranda, our Executive Director and IRO.

For starting the call, I'd turn the floor now to Leandro.

Leandro Miranda

Thank you very much, Firetti. Good morning, everyone. Welcome to our conference call and the results for the second quarter 2020. The second quarter was certainly one of the most challenging quarters that we have experienced in the recent history of the bank, with the pandemic causing a strong impact on the economy and a loss of income by part of our clients and the Brazilian families as well.

In a scenario like this that we have never seen anything like that before, our strong balance sheet, the right provisions and liquidity are essential. And those were the key pillars that we'll address this quarter. We worked intensively in the adaptation of the bank to the new operating conditions, facing the uncertainty as to the evolution of the pandemic and the pace of the reopening of the economy.

From May on, possibly with the contribution of the emergency aid and the beginning of the reopening in other countries, we have seen a significant improvement in the activity and the confidence of our people. Today, we face an economic scenario that remains challenging, but apparently, the worst moment has already passed. This week, our economy has upgraded GDP for expectations to a decline of 4.5% from the previous forecast of a decline of 5.9%.

In the quarter, we had a credit growth of 0.9% and 14.9% in 12 months, impacted mainly by the segment of companies. Among the various measures adopted by the Central Bank of Brazil, we had a release of coupons and reserve to the sum of BRL24 billion. However, between April and June, we released BRL129 billion in new credits.

One of the major highlights of the quarter