bbd20190308_6k.htm - Generated by SEC Publisher for SEC Filing

 
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, 2019
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, 2018, 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, pursuant to CMN Resolution No. 3,786/09 and CVM Rule No. 457/07.

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

 

December 31, 2018

Consolidated Statements

BR GAAP (1)

Adjustments (2)

IFRS

Asset

 

 

 

Cash and balances with banks

107,210

-  

     107,210

Financial assets at fair value through profit or loss

246,161

   -

               246,161

Financial assets at fair value through other comprehensive income

223,727

(45,676)

               178,051

Financial assets at amortized cost:

 

 

 

- Loans and advances to financial institutions, net of provision for losses

 

104,235

           

1,014

              

105,249

- Loans and advances to customers, net of provision for losses

361,572

       18,815

   380,387

- Securities, net of provision for losses

93,776

             46,829

               140,605

- Other financial assets

43,893

                 -  

        43,893

Non-current assets held for sale

1,353

                     -  

                   1,353

Investments in associates and joint ventures

7,640

                  486

                   8,126

Premises and equipment

8,160

            667

          8,827

Intangible assets and goodwill, net of accumulated amortization

13,895

         2,234

        16,129

Taxes to be offset

13,498

                 -  

        13,498

Deferred income tax assets

54,047

       (5,364)

        48,683

Other assets

8,125

          (753)

          7,373

Total assets

1,287,292

       18,252

  1,305,544

       

 

 

 

 

 

 

 

 

 


 
 

 

 

 

 

R$ million

 

December 31, 2018

Liabilities and Shareholders’ Equity

BR GAAP (1)

Adjustments (2)

IFRS

Liabilities

 

 

 

Liabilities at amortized cost:

 

 

 

- Deposits from Banks

       247,314

                 -  

      247,314

- Deposits from customers

       340,748

                 -  

      340,748

- Funds from issuance of securities

       147,721

            308

      148,029

- Subordinated debts

         53,643

                 -  

        53,643

- Other financial liabilities

         62,598

                 -  

        62,598

Financial liabilities at fair value through profit or loss

                  16,152

                     -  

                 16,152

Provision for Expected Loss:

 

 

 

- Loan Commitments

                   -  

         2,552

          2,552

- Financial guarantees

              719

                 -  

             719

Insurance technical provisions and pension plans

                250,568

               1,010

               251,578

Other reserves

        19,802

                 -  

       19,802

Current income tax liabilities

         2,373

                 -  

          2,373

Deferred income tax assets

           4,120

      (2,919)

          1,200

Other liabilities

        19,747

      14,412

        34,158

Total liabilities

   1,165,505

       15,363

   1,180,868

Equity attributable to controlling shareholders

                121,121

               3,154

               124,275

Non-controlling interest

                       666

                 (265)

                      401

Total equity

       121,787

         2,889

       124,676

 

 

 

 

Total liabilities

             1,287,292

               18,252

            1,305,544

(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; and

(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, 2018 is shown below:

Reconciliation of the Shareholders’ Equity and Net Income

R$ million

               
 

Shareholders’ Equity

 

Net income

 

 

 

 

 

December 31, 2018

 

12M18

 

 

 

BR GAAP – Attributed to the Controller

 

      121,121

 

       19,085

 

 

 

           

 

 

1) Impacts of the Adoption of the IFRS 9 (2)

 

698

 

(2,657)

 

 

 

2) Complementary Provision for Coverage

 

(578)

 

(578)

 

 

 

3) Business combination

 

2,735

 

998

 

 

 

Other

 

299

 

(264)

 

 

 

IFRS – Attributed to the Controlling Shareholders (1)

 

      124,275

 

       16,584

 

 

 

Non-controlling interest

 

             401

 

            165

 

 

 

IFRS – Attributed to the controlling and to non-controlling shareholders(1)

 

      124,676

 

       16,749

 

 

 

(1) The net income, base for the calculation of dividends and interest on own capital paid to the shareholders, originates from the BR GAAP, which was disclosed on January 31, 2019.

(2) The effects of the initial adoption of the IFRS 9 are included in the Shareholders’ Equity.


Next, the descriptive of the main adjustments resulting from the effect of the adoption of the IFRS:

1)     Impacts of the Adoption of the IFRS 9

It considers: (i) The adjustment at fair value of the financial assets/Securities; (ii) Expected loss on loans and advances to customers; and (iii) Expected loss on other financial assets.

We highlight that, with the adoption of the IFRS 9, the total balance of the provision for loss expected in the IFRS is aligned with the values recorded in the Expanded ALL in the BR GAAP. We highlight that most of the value refers to the initial adoption and subsequent adjustments of models implemented during the year.

 

2)     Complementary Provision for Coverage

 

Difference between the IFRS 4 and SUSEP Circular No. 543/16 that required the compensation of any insufficiency calculated in the Liability Adequacy Test (LAT) with the difference between the market value and the accounting value of the securities offered in guarantee as the technical provisions classified in the category “held to maturity”.

 

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, 2018 and 2017, accompanied by the independent auditor’s report on the consolidated financial statements, with no amendments, issued by KPMG Auditores Independentes, are available on our site www.bradescori.com.br

 

 

 

 

Cidade de Deus, Osasco, SP, March 7, 2019

 

 

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 7, 2019
 
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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