6-K 1 bbd20210309_6k.htm 6-K

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
 
For the month of March, 2021
Commission File Number 1-15250
 

 
BANCO BRADESCO S.A. 
(Exact name of registrant as specified in its charter)
 
BANK BRADESCO
(Translation of Registrant's name into English)
 
Cidade de Deus, s/n, Vila Yara
06029-900 - Osasco - SP
Federative Republic of Brazil
(Address of principal executive office)
 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.  Form 20-F ___X___ Form 40-F _______

 Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  

Yes _______ No ___X____

 .

 
 

 

 

Notice to the Market

 

Disclosure of the results for the year ended on December 31, 2020, in accordance with the International Financial Reporting Standards – IFRS

 

Banco Bradesco S.A. (“Bradesco”) hereby informs its shareholders, clients, employees and the Market in general that it has prepared the complete set of consolidated financial statements, according to the International Financial Reporting Standards IFRS, in accordance with pronouncements issued by the International Accounting Standards Board – IASB.

 

Consequently, these are the main changes we have made to our consolidated financial statements, as a result of the IFRS:

 

Comparative between the BR GAAP and the IFRS

      R$ million
       
Balance Sheet December 31, 2020
BR GAAP (1) Adjustments (2) IFRS
Cash and balances with banks 107,603 - 107,603
Financial assets at fair value through profit or loss 275,987 - 275,987
Financial assets at fair value through other comprehensive income 265,635 (79,793) 185,842
Financial assets at amortized cost:      
- Loans and advances to financial institutions, net of provision for losses

 

191,147

 

278

 

191,425

- Loans and advances to clients, net of provision for losses 460,980 12,657 473,637
- Securities, net of provision for losses 99,813 79,811 179,624
- Other financial assets 52,416 - 52,416
Non-current assets held for sale 1,202 - 1,202
Investments in associates and joint ventures 7,047 340 7,387
Property and equipment 9,428 4,643 14,071
Intangible assets and goodwill 10,743 3,927 14,670
Taxes to be offset 15,330 - 15,330
Deferred income tax assets 85,050 (8,066) 76,984
Other assets 8,658 (182) 8,476
Total assets 1,591,039 13,615 1,604,654
       
(1) The information presented considers the amounts calculated according to the accounting practices adopted in Brazil (BR GAAP), applicable to financial institutions, according to the regulation of the Central Bank of Brazil, grouped according to the presentation model required by the IFRS.

(2) The differences are the result of the reclassification between the accounts and adjustments applicable to the international accounting standards.

       
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  R$ million 
  December 31, 2020
Liabilities and Shareholders’ Equity BR GAAP (1) Adjustments (2) IFRS
       
Liabilities at amortized cost:      
- Deposits from Banks 267,280 - 267,280
- Deposits from clients 545,293 - 545,293
- Funds from issuance of securities 144,904 - 144,904
- Subordinated debts 53,246 - 53,246
- Other financial liabilities 63,731 11,797 75,528
Financial liabilities at fair value through profit or loss 18,698 - 18,698
Provision for expected loss:      
- Loan commitments - 3,859 3,859
- Financial guarantees 2,219 100 2,319
Insurance technical provisions and pension plans 276,035 3,430 279,465
Other reserves 25,583 - 25,583
Current income tax liabilities 1,596 - 1,596
Deferred income tax assets 7,952 (6,702) 1,250
Other liabilities 40,040 (524) 39,516
Total liabilities 1,446,577 11,960 1,458,537
Shareholders’ equity attributable to controlling shareholders 143,703 1,917 145,620
Non-controlling shareholders’ interest 759 (262) 497
Total shareholders’ equity 144,462 1,655 146,117
       
Total liabilities and shareholders’ equity 1,591,039 13,615 1,604,654
       
(1) The information presented considers the amounts calculated according to the accounting practices adopted in Brazil (BR GAAP), applicable to financial institutions, according to the regulation of the Central Bank of Brazil, grouped according to the presentation model required by the IFRS.
(2) The differences are the result of the reclassification between the accounts and adjustments applicable to the international accounting standards.

 

 

The reconciliation of the Shareholders’ Equity and Net Income related to the fiscal year ended on December 31, 2020 is shown below:

 

 

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Reconciliation of the Shareholders’ Equity and Net Income

 

R$ million

 

           
  Shareholders’ Equity   Net Income  
    December 31, 2020   12M20  
BR GAAP – Attributed to the Controlling Shareholders   143,703   16,547  
           
1) Expected losses on loans and advances to clients and other financial assets   (1,201)   282  
2) Technical provisions   (1,815)   (456)  
3) Business combination   3,680   507  
Other   1,253   (1,044)  
IFRS – Attributed to the Controlling Shareholders (1)   145,620   15,836  
           
Non-controlling shareholders’ interest   497   197  
           
IFRS – Attributed to the Controlling and Non-Controlling Shareholders(1)   146,117   16,033  
(1) The net income, used as the base for the calculation of dividends and interest on shareholders’ equity, originates from the BR GAAP, which was disclosed on February 3, 2021.



Next, the descriptive of the main adjustments:

 

1)Expected losses on financial assets

It considers: (i) Expected loss on loans and advances to clients; and (ii) Expected loss on other financial assets.

 

2)Technical provisions

It comprises mainly the difference between SUSEP Standard No. 543/16 that established the use of the mark-to-market effects of assets given in guarantee classified as held to maturity, to be part of the amount necessary to complement technical provisions, as calculated in the Liability Adequacy Test – TAP, event that does not occur for IFRS 4.

 

3)Business combination

For purposes of the IFRS, the assets and liabilities identified originating from the business combination were adjusted by the differences of the accounting practices, as well as recognized at fair value, whereby the value of the goodwill is not amortized, but tested, periodically, to verify if there is objective evidence of impairment.

 

 

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The complete consolidated financial statements in the IFRS, related to the fiscal years ended on December 31, 2020 and 2019, accompanied by the independent auditor’s report on the consolidated financial statements, with no amendments, issued by KPMG Auditores Independentes, are available on our website www.bradescori.com.br.

 

 

Cidade de Deus, Osasco, SP, March 9, 2021

 

Banco Bradesco S.A.

 

 

Leandro de Miranda Araujo

Executive Deputy Officer and

Investor Relations Officer

 

 

 

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SIGNATURES
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: March 9, 2021
 
BANCO BRADESCO S.A.
By:
 
/S/Leandro de Miranda Araujo

    Leandro de Miranda Araujo
Executive Deputy Officer and
Investor Relations Officer.
 
 
FORWARD-LOOKING STATEMENTS

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