Bank Bradesco 6-K, filed Mar 9, 2020
Bank Bradesco (BBD)
About this 6-K
Bank Bradesco filed this 6-K on March 9, 2020.
UNITED STATESSECURITIES 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, 2020 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 Yara06029-900 - Osasco - SPFederative 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, 2019, 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 adoption of the IFRS:
Comparative between the BR GAAP and the IFRS
| R$ million | |||
|---|---|---|---|
| Consolidated Statements | December 31, 2019 | ||
| BR GAAP ^(1)^ | Adjustments ^(2)^ | IFRS | |
| Cash and balances with banks | 109,611 | - | 109,611 |
| Financial assets at fair value through profit or loss | 250,571 | (811) | 249,760 |
| Financial assets at fair value through other comprehensive income | 261,892 | (69,442) | 192,450 |
| Financial assets at amortized cost: | |||
| - Loans and advances to financial institutions, net of provision for losses | 58,612 | 472 | 59,084 |
| - Loans and advances to customers, net of provision for losses | 404,382 | 19,147 | 423,529 |
| - Securities, net of provision for losses | 97,076 | 69,842 | 166,918 |
| - Other financial assets | 56,102 | - | 56,102 |
| Non-current assets held for sale | 1,357 | - | 1,357 |
| Investments in associates and joint ventures | 7,291 | 345 | 7,636 |
| Property and equipment | 9,732 | 4,927 | 14,659 |
| Intangible assets and goodwill | 11,523 | 3,202 | 14,725 |
| Taxes to be offset | 15,686 | - | 15,686 |
| Deferred income tax assets | 67,400 | (7,830) | 59,570 |
| Other assets | 7,904 | (463) | 7,441 |
| Total assets | 1,359,139 | 19,389 | 1,378,528 |
| (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. |
| R$ million | |||
|---|---|---|---|
| December 31, 2019 | |||
| Liabilities and Shareholders’ Equity | BR GAAP ^(1)^ | Adjustments ^(2)^ | IFRS |
| Liabilities | |||
| Liabilities at amortized cost: | |||
| - Deposits from Banks | 227,820 | - | 227,820 |
| - Deposits from customers | 366,228 | - | 366,228 |
| - Funds from issuance of securities | 170,728 | - | 170,728 |
| - Subordinated debts | 49,314 | - | 49,314 |
| - Other financial liabilities | 74,728 | 4,393 | 79,121 |
| Financial liabilities at fair value through profit or loss | 14,244 | - | 14,244 |
| Provision for Expected Loss: | |||
| - Loan Commitments | - | 2,316 | 2,316 |
| - Financial guarantees | 1,972 | - | 1,972 |
| Insurance technical provisions and pension plans | 265,927 | 2,376 | 268,303 |
| Other reserves | 25,240 | - | 25,240 |
| Current income tax liabilities | 2,595 | - | 2,595 |
| Deferred income tax assets | 8,070 | (6,989) | 1,081 |
| Other liabilities | 17,840 | 16,182 | 34,022 |
| Total liabilities | 1,224,706 | 18,278 | 1,242,984 |
| Equity attributable to shareholders of the parent | 133,723 | 1,377 | 135,100 |
| Non-controlling interest | 710 | (266) | 444 |
| Total equity | 134,433 | 1,111 | 135,544 |
| Total liabilities and equity | 1,359,139 | 19,389 | 1,378,528 |
| (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, 2019 is shown below:
Reconciliation of the Shareholders’ Equity and Net Income
R$ million
| Shareholders’ Equity | Net income | |
|---|---|---|
| December 31, 2019 | 12M19 | |
| BR GAAP – Attributed to the Controller | 133,723 | 22,583 |
| 1) Expected Loss on Financial Assets | (1,471) | (1,011) |
| 2) Complementary Provision for Coverage | (1,359) | (781) |
| 3) Business combination | 3,750 | 722 |
| Other | 456 | (490) |
| IFRS – Attributed to the Controlling Shareholders ^(1)^ | 135,099 | 21,023 |
| Non-controlling interest | 445 | 150 |
| IFRS – Attributed to the controlling and to non-controlling shareholders^(1)^ | 135,544 | 21,173 |
| (1) The net income, the basis for calculating dividends and interest on own capital paid to the shareholders, originates from the BR GAAP, which was disclosed on February 5, 2020. |
Next, the descriptive of the main adjustments resulting from the effect of the adoption of the IFRS:
| 1) | Expected Loss on Financial Assets |
|---|---|
| It includes: (i) Expected loss on loans and advances to customers; and (ii) Expected loss on other financial assets. | |
| 2) | Complementary Provision for Coverage |
| 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. |
The complete consolidated financial statements in the IFRS, related to the fiscal years ended on December 31, 2019 and 2018, 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 6, 2020
Banco Bradesco S.A.
André Rodrigues Cano
Executive Vice-President
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 6, 2020
| BANCO BRADESCO S.A. | |
|---|---|
| By: | /S/Leandro de Miranda Araujo<br><br><br> <br>* * * |
| Leandro de Miranda Araujo<br>Executive Deputy Officer andInvestor Relations Officer. |
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.