Study on Economic and Financial Analysis

Table of Contents

Bradesco 1

Table of Contents
1 - Press Release
3
Highlights 4
Main Information 6
Ratings 8
Book Net Income vs. Adjusted Net Income 8
Summarized Analysis of Adjusted Income 9
Economic Scenario 23
Main Economic Indicators 24
Guidance 25
Book Income vs. Managerial Income vs. Adjusted Income Statement 26
2 - Economic and Financial Analysis 31
Statement of Financial Position 32
Adjusted Income Statement 33
NII - Interest and Non-Interest Earning Portions 33
NII - Interest Earning Portion 34
• Credit Margin - Interest Earning Portion 36
• Funding Margin - Interest Earning Portion 51
• Securities/Other Margin - Interest Earning Portion 56
• Insurance Margin - Interest Earning Portion 56
– NII - Non-Interest Earning Portion 57
Insurance, Pension Plans and Capitalization Bonds 58
– Bradesco Vida e Previdência 65
– Bradesco Saúde e Mediservice 67
– Bradesco Capitalização 68
– Bradesco Auto/RE and Atlântica Companhia de Seguros 70
Fee and Commission Income 72
Personnel and Administrative Expenses 78
– Operating Coverage Ratio 81
Tax Expenses 81
Equity in the Earnings (Losses) of Unconsolidated Companies 81
Operating Income 82
Non-Operating Income 82
3 - Return to Shareholders 83
Sustainability 84
Investor Relations – IR 84
Corporate Governance 84
Bradesco Shares 85
Market Capitalization 88
Main Indicators 89
Dividends/Interest on Shareholders’ Equity 90
Weight on Main Stock Indexes 90
4 - Additional Information 91
Market Share of Products and Services 92
Reserve Requirements 93
Investments in Infrastructure, Information Technology and Telecommunications 94
Risk Management 96
Capital Management 96
Capital Adequacy Ratio 97
Market Disclosure 98
5 - Independent Auditors’ Report 99
Independent Reasonable Assurance Report on the supplementary accounting information included within the
Economic and Financial Analysis Report
100
6 - Financial Statements, Independent Auditors’ Report on the Consolidated Interim Financial
Statements and Fiscal Council’s Report
103


2 Report on Economic and Financial Analysis – June 2014
Forward-Looking Statements

This Economic and Financial Analysis Report contains forward-looking statements related to our
business. Such statements are based on management’s current expectations, estimates and projections
concerning future events and financial trends that may affect our business. Words such as “believe”,
“anticipate”, “plan”, “expect”, “intend”, “goal”, “estimate”, “forecast”, “predict”, “project”, “guidelines”,
“should” and other similar expressions are used to indicate predicting statements. However, forward-
looking statements are not guarantees of future performance and involve certain risks and uncertainties
that may be beyond our control. In addition, some forward-looking statements are based on assumptions
which, depending on future events, may prove not to be accurate. Therefore, actual results may differ
significantly from the plans, goals, expectations, projections and intentions expressed or implied in such
statements.
The factors that may impact the actual results include, among others, changes in regional, national and
international trade and economic policies; inflation; an increased number of defaults by borrowers in loan
operations, with a consequent increase in the allowance for losses from loan operations; loss of ability to
receive deposits; loss of customers or revenues; our ability to sustain and improve performance; changes
in interest rates which may, among other things, adversely affect our margins; competition in the banking
industry, financial services, credit card services, insurance, asset management and other related
industries; government regulation and fiscal affairs; disputes or adverse legal proceedings or regulations;
and credit and other risks involved in lending and investment activities.
As a result, one should not rely excessively on these forward-looking statements. The statements are
valid only for the date on which they were drafted. Except as required by applicable law, we do not assume
any obligation to update these statements as a result of new information, future developments or any
other matters which may arise.




















Some numbers included in this report have been subjected to rounding adjustments.
As a result, some amounts indicated as total amounts in some charts may not be the arithmetic sum
of the preceding numbers.
Press Release
1
Management, Preparation
and Disclosure of the
Report on Economic and
Financial Analysis and the
Consolidated Financial
Statements of Bradesco
Organization
8
Press Release
4 Report on Economic and Financial Analysis – June 2014
Highlights
The main figures obtained by Bradesco in the first
half of 2014 are presented below:
1. The Adjusted Net Income
(1)
for the first half of
2014 stood at R$ 7.277 billion (an increase of
22.9% compared to the Adjusted Net Income of
R$ 5.921 billion recorded in the same period in
2013), which is equivalent to R$ 3.23 per share,
and returns of 20.7% on the Adjusted Average
Equity
(2)
.
2. Adjusted Net Income is composed of
R$ 5.165 billion from financial activities,
representing 71.0% of the total, and
R$ 2.112 billion from insurance, pension plan
and capitalization bond operations, which
together accounted for 29.0%.
3. Bradesco’s market capitalization on June 30,
2014 was R$ 134.861 billion
(3)
, up 8.1%
compared to June 30, 2013.
4. Total Assets stood at R$ 931.132 billion in June
2014, up 3.8% over June 2013. Return on
Average Assets was 1.6%.
5. In June 2014, the Expanded Loan Portfolio
(4)

reached R$ 435.231 billion, up 8.1% over June
2013. Operations with individuals totaled
R$ 135.068 billion (up 9.6% over June 2013),
while operations with companies totaled
R$ 300.163 billion (up 7.5% over June 2013).
6. Assets under Management stood at R$ 1.305
trillion, up 5.8% over June 2013.
7. Shareholders’ Equity stood at R$ 76.800 billion
in June 2014, up 16.3% on June 2013. The
Capital Adequacy Ratio stood at 15.8% in June
2014, 12.1% of which was classified as
Common Equity/Tier I.
8. Interest on Shareholders’ Equity relative to the
first half of 2014 was paid and recorded in
provision to shareholders, in the amount
of R$ 2.396 billion,being R$ 0.497 billion in
monthly installments and R$ 1,899 billion
recorded in provision.
9. The Interest Earning Portion of the Net Interest
Income stood at R$ 22.805 billion, up 8.2%
compared to the first half of 2013.
10. The Delinquency Ratio over 90 days dropped
0.2 p.p. in the last 12 months and stood at 3.5%
on June 30, 2014 (3.7% on June 30, 2013).
11. Efficiency Ratio (ER)
(5)
in June 2014 was 40.9%
(41.8% in June 2013), whereas the adjusted-to-
risk ratio stood at 50.0% (52.6% in June 2013).
It is worth mentioning that, in the second quarter
of 2014, we recorded the best quarterly ER
(38.6%) in the past 5 years.
12. Insurance Written Premiums, Pension Plan
Contributions and Capitalization Bond Income
totaled R$ 25.442 billion in the first half of 2014,
up 5.2% over the same period in 2013.
Technical Reserves stood at R$ 142.731 billion,
up 8.3% compared to June 2013.
13. Investments in infrastructure, information
technology and telecommunications amounted
to R$ 2.211 billion in the first half of 2014.
14. Taxes and contributions, including social
security, paid or recorded in provision,
amounted to R$ 14.116 billion, of which
R$ 5.156 billion referred to taxes withheld and
collected from third parties, and R$ 8.960 billion
from Bradesco Organization activities,
equivalent to 123.1% of the Adjusted Net
Income
(1)
.
15. Bradesco has an extensive customer service
network in Brazil, with 4,680 Branches and
3,497 Service Branches – PAs. Customers can
also use any of 1,175 PAEs – ATMs (Automatic
Teller Machines), 48,186 Bradesco Expresso
service points, 31,509 Bradesco Dia & Noite
ATMs and 16,103 Banco24Horas ATMs across
the country.
(1) According to the non-recurring events described on page 8 of this Report on Economic and Financial Analysis; (2) Excludes mark-to-market effect of Securities Available for Sale
recorded under Shareholders’ Equity; (3) Number of shares (excluding treasury shares) multiplied by the closing price for common and preferred shares on the last trading day of the
period; (4) Includes sureties and guarantees, letters of credit, advances of credit card receivables, co-obligations in loan assignments (receivables-backed investment funds and
mortgage-backed receivables), co-obligations in rural loan assignments and operations bearing credit risk – commercial portfolio, which includes debentures and promissory notes;
and (5) In the last 12 months.
Press Release
Bradesco 5

Highlights
16. Payroll, plus charges and benefits, totaled
R$ 5.651 billion. Social benefits provided to the
99,027 employees of the Bradesco
Organization and their dependents amounted to
R$ 1.401 billion, while investments in training
and development programs totaled
R$ 53,581 million.
17. In May 2014, Bradesco BBI participated as one
of the coordinators and joint bookrunners of a
securitization transaction for Ford Motor Credit
Company in the U.S., involving a
US$ 1.04 billion transaction; this is the second
time Bradesco BBI participates in funding
operations for the U.S. automaker.
18. In May 2014, Banco Bradesco and Banco do
Brasil, via its subsidiary Companhia Brasileira
de Soluções e Serviços (“CBSS”), created the
company LIVELO S.A. (“LIVELO”). The
coalition loyalty program allows customers to
accumulate and redeem points from multiple
partners. The effective deployment of
operations is conditioned to due compliance
with applicable legal and regulatory formalities.
19. In July 2014, Banco Bradesco signed a new
“Tecban Shareholders’ Agreement”, including
the main Brazilian retail banks, covering the
consolidation of external ATM networks by the
Banco24Horas ATM Network within a four-
year term, ultimately enhancing the efficiency
and quality/reach of customer services
rendered. The effectiveness of such
Shareholders’ Agreement is subject to
preceding conditions, including due approval
from competent regulatory entities.
20. In July 2014, Bradesco entered into a strategic
partnership with IBM Brazil, which will take
over the operational structure and all
maintenance and support contracts entered
between Scopus Serviços, an Organization
Bradesco company, and its other customers.
21. Major Awards and Acknowledgments in the
period:
? For the third consecutive year, Bradesco was
named “Best Brazilian Bank” by Euromoney
Awards for Excellence. In addition Bradesco
BBI was chosen as best Brazilian Investment
Bank (Euromoney magazine);
? Among financial institutions, Bradesco led the
ranking of most valuable brands in Brazil (IstoÉ
Dinheiro magazine and
BrandAnalytics/Milward Brown Optimor
consulting firm); and
? Stood out as the only Brazilian bank ranked
among the “Best Companies to Work for in
Latin America” for the second consecutive
year, under the “Companies with over 500
employees” category (Great Place to Work
consulting firm).
The Bradesco Organization fully complies with best
global sustainability and corporate governance
practices, particularly: Global Compact, PRI
(Principles for Responsible Investment), Equator
Principles, Carbon Disclosure Project and Green
Protocol. Our sustainability actions, strategies and
guidelines are guided by best corporate
governance practices. The Organization’s main
activities focus on banking inclusion, social and
environmental variables for loan approvals and
product offerings, based on social and
environmental aspects. Regarding responsible
management and engagement with stakeholders,
we highlight activities geared towards valuing
professionals, improving the workplace, client
relations, managing suppliers and adopting
environmental management practices. We also
highlight the Organization’s role in Brazilian society
as one of its leading social investors, supporting
education, environment, culture and athletic
programs.
With its 57-year history of extensive social and
educational work, Fundação Bradesco has been a
stalwart supporter of such programs, and operates
40 schools across Brazil. In 2014, an estimated
budget of R$ 523.434 million will benefit
approximately 105,672 students in its schools, in
Basic Education (from Kindergarten to High School
and Vocational Training at the High School level),
Education for Youth and Adults, and Preliminary
and Continuing Qualification focused on the
creation of jobs and generation of income.
Press Release
6 Report on Economic and Financial Analysis – June 2014
Main Information
2Q14 vs.1Q14 2Q14 vs.2Q13
Income Statement f or the Period - R$ million
Book Net Income 3,778 3,443 3,079 3,064 2,949 2,919 2,893 2,862 9.7 28.1
Adjusted Net Income 3,804 3,473 3,199 3,082 2,978 2,943 2,918 2,893 9.5 27.7
Total Net Interest Income 12,066 10,962 11,264 10,729 10,587 10,706 11,109 10,955 10.1 14.0
Gross Credit Margin 7,967 7,711 7,850 7,793 7,634 7,414 7,527 7,460 3.3 4.4
Net Credit Margin 4,826 4,850 4,889 4,912 4,540 4,305 4,317 4,157 (0.5) 6.3
Provision f or Loan Losses (ALL) Expenses (3,141) (2,861) (2,961) (2,881) (3,094) (3,109) (3,210) (3,303) 9.8 1.5
Fee and Commission Income 5,328 5,283 5,227 4,977 4,983 4,599 4,675 4,438 0.9 6.9
Administrative and Personnel Expenses (7,023) (6,765) (7,313) (6,977) (6,769) (6,514) (6,897) (6,684) 3.8 3.8
Insurance Written Premiums, Pension Plan Contributions and
Capitalization Bond Income
13,992 11,450 14,492 11,069 13,238 10,953 13,216 10,104 22.2 5.7
Statement of Financial Position - R$ million
Total Assets 931,132 922,229 908,139 907,694 896,697 894,467 879,092 856,288 1.0 3.8
Securities 333,200 321,970 313,327 313,679 309,027 300,600 315,487 319,537 3.5 7.8
Loan Operations
(1)
435,231 432,297 427,273 412,559 402,517 391,682 385,529 371,674 0.7 8.1
- Individuals 135,068 132,652 130,750 127,068 123,260 119,013 117,319 114,287 1.8 9.6
- Corporate 300,163 299,645 296,523 285,490 279,257 272,668 268,210 257,387 0.2 7.5
Allowance f or Loan Losses (ALL)
(2)
(21,791) (21,407) (21,687) (21,476) (21,455) (21,359) (21,299) (20,915) 1.8 1.6
Total Deposits 213,270 218,709 218,063 216,778 208,485 205,870 211,858 212,869 (2.5) 2.3
Technical Reserves 142,731 137,751 136,229 133,554 131,819 127,367 124,217 117,807 3.6 8.3
Shareholders' Equity 76,800 73,326 70,940 67,033 66,028 69,442 70,047 66,047 4.7 16.3
Assets under Management 1,304,690 1,277,670 1,260,056 1,256,220 1,233,546 1,243,170 1,225,228 1,172,008 2.1 5.8
Perf ormance Indicators (%) on Adjusted Net Income (unless otherwise stated)
Adjusted Net Income per Share - R$
(3) (4)
3.23 3.03 2.91 2.84 2.79 2.77 2.74 2.71 6.6 15.8
Book Value per Common and Pref erred Share - R$
(4)
18.31 17.48 16.90 15.97 15.72 16.54 16.68 15.73 4.7 16.5
Annualized Return on Average Equity
(5) (6)
20.7 20.5 18.0 18.4 18.8 19.5 19.2 19.9 0.2 p.p. 1.9 p.p.
Annualized Return on Average Assets
(6)
1.6 1.5 1.4 1.3 1.3 1.3 1.4 1.4 0.1 p.p. 0.3 p.p.
Average Rate - Annualized (Adjusted Net Interest Income /
Total Average Assets - Purchase and Sale Commitments -
Permanent Assets)
7.8 7.2 7.3 7.1 7.2 7.3 7.6 7.6 0.6 p.p. 0.6 p.p.
Fixed Assets Ratio - Total Consolidated 13.2 15.0 15.2 17.5 17.3 16.5 16.9 19.0 (1.8) p.p. (4.1) p.p.
Combined Ratio - Insurance
(7)
86.3 86.4 86.1 86.9 85.5 86.0 86.6 86.5 (0.1) p.p. 0.8 p.p.
Ef f iciency Ratio (ER)
(3)
40.9 41.9 42.1 42.1 41.8 41.5 41.5 42.1 (1.0) p.p. (0.9) p.p.
Coverage Ratio (Fee and Commission Income/Administrative
and Personnel Expenses)
(3)
74.1 73.6 71.8 70.8 69.6 67.7 66.5 64.4 0.5 p.p. 4.5 p.p.
Market Capitalization - R$ million
(8)
134,861 135,938 128,085 136,131 124,716 145,584 131,908 113,102 (0.8) 8.1
Loan Portf olio Quality %
(9)
ALL / Loan Portf olio
(2)
6.6 6.5 6.7 6.9 7.0 7.2 7.3 7.4 0.1 p.p. (0.4) p.p.
Non-perf orming Loans (> 60 days
(10)
/ Loan Portf olio) 4.4 4.2 4.2 4.4 4.6 4.9 5.0 5.1 0.2 p.p (0.2) p.p.
Delinquency Ratio (> 90 days
(10)
/ Loan Portf olio) 3.5 3.4 3.5 3.6 3.7 4.0 4.1 4.1 0.1 p.p. (0.2) p.p.
Coverage Ratio (> 90 days
(10)
)
(2)
186.9 193.8 192.3 190.3 188.6 179.4 178.2 179.0 (6.9) p.p. (1.7) p.p.
Coverage Ratio (> 60 days
(10)
)
(2)
149.9 153.7 158.9 156.8 153.5 146.0 147.3 144.8 (3.8) p.p. (3.6) p.p.
Operating Limits %
Capital Adequacy Ratio - Total
(11)
15.8 15.7 16.6 16.4 15.4 15.6 16.1 16.0 0.1 p.p. 0.4 p.p.
Capital Nivel I 12.1 11.9 12.3 12.7 11.6 11.0 11.0 11.3 0.2 p.p. 0.5 p.p.
- Common Equity 12.1 11.9 12.3 - - - - - 0.2 p.p. -
Capital Nível II 3.7 3.8 4.3 3.7 3.8 4.6 5.1 4.7 (0.1) p.p. (0.1) p.p.
2Q14 1Q14 3Q12
Variation %
4Q13 3Q13 2Q13 1Q13 4Q12



Press Release
Bradesco 7

Main Information
Variation %
Jun14 vs.
Mar14
Jun14 vs.
Jun13
Structural Inf ormation - Units
Service Points 73,208 73,320 72,736 71,724 70,829 69,528 68,917 67,225 (0.2) 3.4
- Branches 4,680 4,678 4,674 4,697 4,692 4,687 4,686 4,665 - (0.3)
- PAs
(12)
3,497 3,484 3,586 3,760 3,795 3,786 3,781 3,774 0.4 (7.9)
- PAEs
(12)
1,175 1,186 1,180 1,421 1,454 1,457 1,456 1,456 (0.9) (19.2)
- External Bradesco ATMs
(13) (14)
1,684 2,701 3,003 3,298 3,498 3,712 3,809 3,954 (37.7) (51.9)
- Banco24Horas Network ATMs
(13)
12,023 11,873 11,583 11,229 11,154 10,966 10,818 10,464 1.3 7.8
- Bradesco Expresso (Correspondent Banks) 48,186 47,430 46,851 45,614 44,819 43,598 43,053 41,713 1.6 7.5
- Bradesco Promotora de Vendas 1,949 1,955 1,846 1,692 1,404 1,309 1,301 1,186 (0.3) 38.8
- Branches / Subsidiaries Abroad 14 13 13 13 13 13 13 13 7.7 7.7
ATMs 47,612 48,295 48,203 47,969 47,972 48,025 47,834 47,542 (1.4) (0.8)
- Bradesco Network 31,509 32,909 33,464 33,933 34,322 34,719 34,859 35,128 (4.3) (8.2)
- Banco24Horas Network 16,103 15,386 14,739 14,036 13,650 13,306 12,975 12,414 4.7 18.0
Employees 99,027 99,545 100,489 101,410 101,951 102,793 103,385 104,100 (0.5) (2.9)
Outsourced Employees and Interns 12,790 12,671 12,614 12,699 12,647 13,070 12,939 13,013 0.9 1.1
Customers - in millions
Active Checking Account Holders
(15) (16)
26.5 26.6 26.4 26.4 26.2 25.8 25.7 25.6 (0.4) 1.1
Savings Accounts
(17)
51.8 49.0 50.9 48.3 47.7 46.6 48.6 48.3 5.7 8.6
Insurance Group 45.5 45.3 45.7 45.3 44.2 42.9 43.1 42.4 0.4 2.9
- Policyholders 39.6 39.4 39.8 39.5 38.4 37.1 37.3 36.7 0.5 3.1
- Pension Plan Participants 2.4 2.4 2.4 2.4 2.4 2.3 2.3 2.3 - -
- Capitalization Bond Customers 3.5 3.5 3.5 3.4 3.4 3.5 3.5 3.4 - 2.9
Bradesco Financiamentos
(15)
3.2 3.2 3.3 3.4 3.5 3.6 3.7 3.7 - (8.6)
Jun14 Dec12 Sept12 Mar14 Dec13 Sept13 Jun13 Mar13

(1) Expanded Loan Portfolio: includes sureties and guarantees, letters of credit, advances of credit card receivables, co-obligations in loan assignments
(receivables-backed investment funds and mortgage-backed receivables), co-obligations in rural loan assignments and operations bearing credit
risk – commercial portfolio, covering debentures and promissory notes;
(2) Includes provision for guarantees provided, encompassing sureties, guarantees, letters of credit, and standby letters of credit, which comprises the
concept of excess ALL;
(3) In the last 12 months;
(4) For comparison purposes, shares were adjusted according to bonuses and stock splits;
(5) Excluding mark-to-market effect of Securities Available for Sale recorded under Shareholders’ Equity;
(6) Year-to-Date Adjusted Net Income;
(7) Excludes additional reserves;
(8) Number of shares (excluding treasury shares) multiplied by the closing price for common and preferred shares on the period’s last trading day;
(9) As defined by the Brazilian Central Bank (Bacen);
(10) Delinquent Credits;
(11) Since October 2013, the Capital Adequacy Ratio calculation follows regulatory guidelines set forth in CMN Resolutions N
o
4192/13 and 4193/13
Capital Adequacy Ratio (Basel III);
(12) PA (Service Branch): a result of the consolidation of PAB (Banking Service Branch), PAA (Advanced Service Branch) and Exchange Branches,
according to CMN Resolution N
o
4072/12; and PAEs – ATMs located on a company’s premises;
(13) Including overlapping ATMs within the Bank’s own network and the Banco24Horas Network;
(14) Such reduction relates to the sharing of external network ATM terminals by the Banco24Horas ATM network;
(15) Number of individual customers (Corporate Tax IDs (CNPJs) and Individual Taxpayer IDs (CPFs));
(16) Refers to 1
st
and 2
nd
checking account holders; and
(17) Number of accounts.

o


Press Release
8 Report on Economic and Financial Analysis – June 2014
Ratings
Main Ratings

Feasibility Support
Long Term Short Term Long Term Short Term
A - F1 AAA (bra) F1 + (bra)
*
Financial Strength / Individual Credit
Risk Profile
Foreign Currency Senior
Debt
Long Term Long Term Short Term Long Term Short Term Long Term Short Term
Baa1 Baa1 P- 2 Baa2 P-2 Aaa.br BR - 1
Fitch Ratings
International Scale Domestic Scale
Domestic Currency Foreign Currency Domestic
a - 2
Long Term Short Term
BBB + F2
BBB
Moody's Investors Service R&I Inc.
International Scale Domestic Scale International Scale
C - / baa1
Domestic Currency
Deposit
Foreign Currency Deposit Domestic Currency Issuer Rating

*
Long Term Short Term
Long Term Short Term Long Term Short Term Long Term Short Term
BBB - A - 3 BBB - A - 3 brAAA brA - 1
brAA+ brAAA brA -1
Standard & Poor's Austin Rating
International Scale - Issuer's Credit Rating Domestic Scale
Corporate Governance
Domestic Scale
Foreign Currency Domestic Currency Issuer's Credit Rating



Book Net Income vs. Adjusted Net Income
The main non-recurring events that impacted Book Net Income in the periods below are presented in the
following comparative chart:
R$ million
1H14 1H13 2Q14 1Q14
Book Net Income 7,221 5,868 3,778 3,443

Non-Recurring Events 56 53 26 30
- Civil Provisions 93 88 43 50
- Tax Effects (37) (35) (17) (20)

Adjusted Net Income 7,277 5,921 3,804 3,473
0
ROAE%
(1)
20.5 18.7 21.7 20.3
0
(ADJUSTED) ROAE%
(1)
20.7 18.8 21.9 20.5


(1) Annualized.

Press Release
Bradesco 9

Summarized Analysis of Adjusted Income
To provide for better understanding, comparison
and analysis of Bradesco’s results, we use the
Adjusted Income Statement for analysis and
comments contained in this Report on Economic
and Financial Analysis, obtained from adjustments
made to the Book Income Statement, detailed at
the end of this Press Release, which includes
adjustments to non-recurring events shown on the
previous page. Note that the Adjusted Income
Statement serves as the basis for the analysis and
comments made in Chapters 1 and 2 of this report.
R$ million
Adjusted Income Statement
Variation Variation
1H14 vs. 1H13 2Q14 vs. 1Q14
Amount % Amount %
Net Interest Income 23,028 21,293 1,735 8.1 12,066 10,962 1,104 10.1
- Interest Earning Portion 22,805 21,078 1,727 8.2 11,854 10,951 903 8.2
- Non-interest Earning Portion 223 215 8 3.7 212 11 201 1,827.3
ALL (6,002) (6,203) 201 (3.2) (3,141) (2,861) (280) 9.8
Gross Income from Financial Intermediation 17,026 15,090 1,936 12.8 8,925 8,101 824 10.2
Income f rom Insurance, Pension Plans and
Capitalization Bonds
(1)
2,514 2,183 331 15.2 1,270 1,244 26 2.1
Fee and Commission Income 10,611 9,582 1,029 10.7 5,328 5,283 45 0.9
Personnel Expenses (6,727) (6,250) (477) 7.6 (3,448) (3,279) (169) 5.2
Other Administrative Expenses (7,061) (7,033) (28) 0.4 (3,575) (3,486) (89) 2.6
Tax Expenses (2,234) (2,140) (94) 4.4 (1,120) (1,114) (6) 0.5
Equity in the Earnings (Losses) of Unconsolidated
Companies 87 15 72 480.0 35 52 (17) (32.7)
Other Operating Income/ (Expenses) (2,724) (2,317) (407) 17.6 (1,333) (1,391) 58 (4.2)
Operating Result 11,492 9,130 2,362 25.9 6,082 5,410 672 12.4
Non-Operating Result (70) (62) (8) 12.9 (34) (36) 2 (5.6)
Income Tax / Social Contribution (4,086) (3,091) (995) 32.2 (2,215) (1,871) (344) 18.4
Non-controlling Interest (59) (56) (3) 5.4 (29) (30) 1 (3.3)
Adjusted Net Income 7,277 5,921 1,356 22.9 3,804 3,473 331 9.5
1H14 1H13 2Q14 1Q14
(1) Income from Insurance, Pension Plans and Capitalization Bonds = Insurance, Pension Plan and Capitalization Bond Retained
Premiums – Changes in Technical Reserves for Insurance, Pension Plans and Capitalization Bonds – Retained Claims – Capitalization
Bond Draws and Redemption – Insurance, Pension Plan and Capitalization Bond Sales Expenses.

Press Release
10 Report on Economic and Financial Analysis – June 2014
Summarized Analysis of Adjusted Income
Adjusted Net Income and Profits
Return on Adjusted Average Equity (ROAE)
reached 20.7% in June 2014 – the best rate over
the past 8 quarters. Such performance stems from
the growth of adjusted net income, which increased
by 9.5% in the quarterly comparison and 22.9%
comparing the first half of 2014 with the same
period of the previous year. The main events that
impacted adjusted net income are detailed below.
Adjusted net income reached R$ 3,804 million in
the second quarter of 2014, up R$ 331 million
compared to the previous quarter, mainly due to (i)
higher net interest income, due to increased
interest and non-interest earning portions; (ii)
increased fee and commission income, due to an
increase in business volume; and partially
impacted by: (iii) increased allowance for loan
losses; and (iv) increased administrative and
personnel expenses.
Year-over-year, adjusted net income for the first
half of 2014 increased by R$ 1,356 million,
basically reflecting: (i) higher net interest income;
(ii) lower allowance for loan losses; (iii) greater fee
and commission income; (iv) greater income from
Insurance, Pension Plans and Capitalization
Bonds; and partially offset by: (v) greater operating
expenses.
Shareholders’ Equity stood at R$ 76,800 million in
June 2014, up 16.3% over June 2013. The Capital
Adequacy Ratio stood at 15.8%, 12.1% of which
fell under Common Equity/Tier I.
Total Assets reached R$ 931,132 million in June
2014, up 3.8% over June 2013, driven by the
increase in operations and greater business
volume. Return on Average Assets (ROAA)
reached 1.6%.


(1) Annualized.



(1) In the last 12 months.



66,047
70,047 69,442
66,028
67,033
70,940
73,326
76,800
19.9% 19.2% 19.5% 18.8% 18.4% 18.0%
20.5% 20.7%
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
Shareholders' Equity ROAE (Adjusted Income in the Last 12 Months) (1)
29%
33% 32%
31% 28% 31% 30% 28%
2,893
2,918 2,943 2,978
3,082
3,199
3,473
3,804
2.71 2.74 2.77 2.79
2.84
2.91
3.03
3.23
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Insurance Market Share Adjusted Net Income
Earnings per Share (R$) (1)
856,288 879,092
894,467 896,697 907,694 908,139
922,229
931,132
1.4% 1.4% 1.3% 1.3% 1.3% 1.4% 1.5% 1.6%
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
Total Assets ROAA (Adjusted Income in the Last 12 Months)
Press Release
Bradesco 11

Summarized Analysis of Adjusted Income
Efficiency Ratio (ER)
ER continued to drop in all calculation criteria
presented. This downward trend was led by the 12-
month Efficiency Ratio
(1)
, which reached 40.9% in
the second quarter of 2014 – its lowest level since
December 2009 –, 1 p.p. higher than the previous
quarter and an increase of 0.9 p.p. compared to the
same period in 2013; and by the quarterly ER,
which dropped from 40.1% to 38.6%. The events
that contributed most to this improvement in ER
were: (i) greater net interest income, due to
increased average business volume and higher
market arbitrage gains; and (ii) the behavior of
operating expenses, impacted by rigorous cost
controls despite the organic growth in the period.
Risk-adjusted ER, which reflects the impact of the
risk associated to credit operations
(2)
, reached
50.0%, an improvement of 1.4 p.p. quarter-over-
quarter and 2.6 year-over-year. Such improvement
was mostly influenced by the lower provision for
loan loss expenses in the last 12 months, resulting
from the sustained loan portfolio quality, in addition
to the aforementioned reasons.














(1) ER = (Personnel Expenses – Employee Profit Sharing + Administrative Expenses)/(Net Interest Income + Fee and Commission Income + Income from Insurance + Equity in the Earnings (Losses) of
Unconsolidated Companies + Other Operating Income – Other Operating Expenses). Considering the ratio between (i) total administrative costs (Personnel Expenses + Administrative Expenses + Other
Operating Expenses + Tax Expenses not related to revenue generation + Insurance Sales Expenses) and (ii) generation of net revenue of related taxes (not considering Claims and Sales Expenses from the
Insurance Group), Bradesco’s ER in the last 12 months up to the second quarter of 2014 would be 44.5%; and
(2) Including ALL expenses, adjusted for discounts granted, loan recovery and sale of foreclosed assets, among others.

41.7%
42.5%
40.9%
42.1%
42.9% 42.5%
40.1%
38.6%
53.1%
52.7% 52.6% 52.6% 52.5%
52.1%
51.4%
50.0%
42.1%
41.5% 41.5% 41.8% 42.1% 42.1% 41.9%
40.9%
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Quarterly Efficiency Ratio
Adjusted-to-Risk Efficiency Ratio - 12 months (2)
Efficiency Ratio - 12 months (1)
Press Release
12 Report on Economic and Financial Analysis – June 2014
Summarized Analysis of Adjusted Income
Net Interest Income

In the quarter-over-quarter comparison, the
R$ 1,104 million growth was mainly due to: (i)
increased results achieved by the interest earning
portion, totaling R$ 903 million, particularly
Securities/Other, Loan, and Funding; and (ii) the
increased non-interest earning portion of the net
interest income, totaling R$ 201 million, reflecting
higher gains from market arbitrage.
Year-over-year, the net interest income for the first
half of 2014 rose by by R$ 1,735 million, mainly due
to: (i) a R$ 1,727 million increase in interest earning
operations, due to an increase in business volume,
particularly in the Loan and Funding business lines.
10,603 10,678
10,509 10,569
10,622
10,986 10,951 11,854
352 431
197 18
107
278
11
212
10,955
11,109
10,706
10,587
10,729
11,264
10,962 12,066
7.4%
7.3%
7.2% 7.2%
7.0% 7.1%
7.1%
7.7%
7.5%
7.1%
7.9%
9.4%
10.1%
10.6%
11.4%
10.9%
7.8%
7.2%
7.1%
7.5%
8.5%
9.5%
10.4%
10.9%
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Non-Interest Earning Portion
Interest Earning Portion
NIM = (NII - Interest Earning Portion/(Total Average Assets - Repos - Permanent Assets)) Annualized
BM&F Fixed Rate (1 year)
Average Selic Rate (annualized)
Press Release
Bradesco 13

Summarized Analysis of Adjusted Income
NII - Interest Earning Portion – Annualized Net Interest Margin (NIM)

R$ million
1H14 1H13
Interest
Average
Balance
Average
Rate
Interest
Average
Balance
Average
Rate
Loans 15,678 337,264 9.8% 15,048 303,767 10.2%
Funding 2,984 369,896 1.7% 2,061 328,690 1.3%
Insurance 2,045 138,949 3.1% 1,828 128,330 2.9%
Securities/Other 2,098 335,130 1.3% 2,141 304,853 1.4%
0
Net Interest Income 22,805 - 7.4% 21,078 - 7.2%
0
2Q14 1Q14
Interest
Average
Balance
Average
Rate
Interest
Average
Balance
Average
Rate
Loans 7,967 339,341 10.1% 7,711 335,187 9.9%
Funding 1,570 365,285 1.8% 1,415 374,507 1.6%
Insurance 1,081 141,206 3.2% 964 136,692 2.9%
Securities/Other 1,236 324,770 1.6% 861 345,490 1.0%
0
Net Interest Income 11,854 - 7.7% 10,951 - 7.1%

The annualized net interest margin reached 7.7% in the second quarter of 2014, up 0.6 p.p. over the previous
quarter, mainly due to an improvement of all business lines that make up the interest earning portion, as
illustrated in the table above.









Press Release
14 Report on Economic and Financial Analysis – June 2014
Summarized Analysis of Adjusted Income
Expanded Loan Portfolio
(1)

In June 2014, Bradesco’s expanded loan portfolio
totaled R$ 435.2 billion. The 0.7% increase in the
quarter reflects mainly the Individuals portfolio,
which was up 1.8%. The graph on the right shows
that the share of SMEs in the portfolio has
decreased, which is mostly due to a higher growth
rate of lower-risk products, namely payroll-
deductible loan, real estate financing and in the
Corporations segment. In the last twelve months,
this portfolio increased by 8.1%: (i) 9.9% in
Corporations; (ii) 9.6% in Individuals; and (iii) 3.7%
in SMEs
In the last twelve months, this portfolio increased
by 8.1%: (i) 9.9% in Corporations; (ii) 9.6% in
Individuals; and (iii) 3.7% in SMEs.
In the Corporate segment, the products that posted
the strongest growth in the last 12 months were: (i)
real estate financing; and (ii) foreign transactions.

In the Individual segment, the main highlights were:
(i) payroll-deductible loan; and (ii) real estate
financing.
? 8.1%
12 months

? 0.7%
Quarter

(1) Includes sureties, guarantees, letters of credit, advances of credit card receivables, debentures, promissory notes, assignment of receivables-backed
investment funds and mortgage-backed and rural loan receivables.
For more information, see Chapter 2 of this Report.

Allowance for Loan Losses (ALL)
(1)

Allowance for loan losses (ALL) stood at
R$ 3,141 million in the second quarter of 2014, a
9.8% increase over the previous quarter, partly due
to: (i) a decrease in delinquency levels for the
previous quarter, due to a delay in the seasonal
concentration of expense payments by our
customers – this seasonal effect produced only a
mild impact, in the second quarter of 2014; and (ii)
by the adjustment of provision levels to the forecast
of losses from specific corporate client operations.
Comparing the first half of 2014 to the same period
of the previous year, this expense decreased 3.2%,
despite the 7.6% increase in loan operations
(as defined by Bacen), resulting from
reduced delinquency levels in the last 12 months.

It is important to note that these results reflect the
consistency of the loan granting
policy and processes, quality of guarantees
obtained, as well as the loan recovery process
improvement.


(1) Includes provision for guarantees provided, encompassing sureties, guarantees, letters of credit, and standby letter of credit, which comprises the concept
of excess ALL.
For more information, see Chapter 2 of this Report.


27.4% 27.3% 27.0% 26.9% 26.8% 26.4% 26.1% 25.8%
41.9%
42.3% 42.6%
42.5%
42.4%
43.0% 43.2% 43.2%
30.7%
30.4%
30.4%
30.6%
30.8%
30.6%
30.7% 31.0%
371.7
385.5
391.7
402.5
412.6 427.3 432.3 435.2
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ billion
SMEs Corporations Individuals
3,303
3,210
3,109 3,094
2,881
2,961
2,861
3,141
7.4% 7.3% 7.2%
7.0% 6.9%
6.7%
6.5% 6.6%
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
ALL (Expense) ALL(1)/ Loan Operation (%)
Press Release
Bradesco 15

Summarized Analysis of Adjusted Income
Delinquency Ratio
(1)


Year-over-year, the total delinquency ratio, which
is based on transactions due over 90 days,
decreased from 3.7% to 3.5%, mainly due to: (i)
changes in the portfolio mix; (ii) the continuous
improvement of loan granting procedures and
systems; and (iii) the improved internal credit risk
monitoring models. Quarter-over-quarter, there
was a slight increase, mainly due to the lower
growth rate experienced by the credit portfolio, as
well as of some specific corporate client
operations, which does not characterize a trend, as
evidenced in the short-term delinquency chart
below (between 15 and 90 days), which indicates
that delinquency levels have stabilized.


Even with the lower growth rate presented by the loan portfolio, short-term delinquencies, which include
transactions due between 15 and 90 days, have remained stable year-over-year and suffered a slight reduction
quarter-over-quarter.

(1) As defined by the Brazilian Central Bank (Bacen).

6.2 6.2
6.0
5.5
5.2
5.0
4.7
4.8
4.6 4.6 4.6
4.4
4.4
4.2
4.1
4.4
4.1 4.1
4.0
3.7
3.6
3.5
3.4
3.5
0.4
0.3 0.3
0.2
0.3
0.6
0.4
0.7
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
Delinquency over 90 days
Individuals SMEs Total Corporations
%
6.7
6.2
6.7
6.2
5.9
5.6
6.1
5.9
2.8
2.5
2.8
2.4
2.2
2.4
2.8
2.5
4.4
4.0
4.3
3.9
3.7 3.7
4.1
3.9
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
Delinquency between 15 and 90 days %
Individuals Corporate Total
Press Release
16 Report on Economic and Financial Analysis – June 2014
Summarized Analysis of Adjusted Income
Coverage Ratios
Bradesco monitors the development of its loan
portfolio, as well as respective risks, by internally
applying the expanded portfolio concept. In
addition to the allowance for loan losses required
by Bacen, Bradesco has excess ALL to support
potential stress scenarios, as well as other
operations/commitments bearing credit risks.

The following graph presents the changes in
coverage ratio of the Allowance for Loan Losses for
loans overdue for more than 60 and 90 days. In
June 2014, these ratios stood at comfortable
levels, reaching 149.9% and 186.9%, respectively.

(1) Includes provision for guarantees provided, encompassing sureties, guarantees, letters of credit, and standby letter of credit, which comprises the concept
of excess ALL.

20,915
21,299 21,359 21,455 21,476
21,687
21,407 21,791
14,447
14,455 14,628
13,980
13,693 13,651
13,928
14,538
11,684
11,955 11,904
11,374 11,283
11,275 11,048
11,658
179.0% 178.2% 179.4%
188.6%
190.3% 192.3%
193.8%
186.9%
144.8% 147.3% 146.0%
153.5%
156.8%
158.9%
153.7% 149.9%
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
Total Provision (1) Loan Portfolio Overdue for over 60 Days (2)
Loan Portfolio Overdue for over 90 Days (3) Coverage Ratio over 90 Days (1/3)
Coverage Ratio over 60 Days (1/2)
Press Release
Bradesco 17

Summarized Analysis of Adjusted Income
Income from Insurance, Pension Plans and Capitalization Bonds
Net income for the second quarter of 2014 stood at
R$ 1.072 billion (R$ 1.040 billion in the first quarter
of 2014), up 3.1% compared to the previous
quarter, for an annualized Return on Adjusted
Shareholders’ Equity of 26.3%.

Net income for the first half of 2014 stood at
R$ 2.112 billion, up 13.5% compared to the same
period in the previous year (R$ 1.861 billion), for a
return on Adjusted Shareholder’s Equity of 25.1%.



(1) Excluding additional provisions.


2Q14 x 1Q14 2Q14 x 2Q13
Net Income 1,072 1,040 1,001 878 931 930 964 837 3.1 15.1
Insurance Written Premiums, Pension Plan Contributions
and Capitalization Bond Income
13,992 11,450 14,492 11,069 13,238 10,953 13,216 10,104 22.2 5.7
Technical Reserves 142,731 137,751 136,229 133,554 131,819 127,367 124,217 117,807 3.6 8.3
Financial Assets 154,261 147,725 146,064 143,423 141,984 141,535 141,540 133,738 4.4 8.6
Claims Ratio (%) 70.2 70.1 71.1 72.7 71.1 69.6 70.5 70.4 0.1 p.p. (0.9) p.p.
Combined Ratio (%) 86.3 86.4 86.1 86.9 85.5 86.0 86.6 86.5 (0.1) p.p. 0.8 p.p.
Policyholders / Participants and Customers (in thousands) 45,468 45,260 45,675 45,292 44,215 42,941 43,065 42,363 0.5 2.8
Employees (unit) 7,152 7,265 7,383 7,462 7,493 7,510 7,554 7,545 (1.6) (4.6)
Market Share of Insurance Written Premiums, Pension Plan
Contributions and Capitalization Bond Income (%)
(1)
23.8 23.4 24.2 23.8 24.0 22.4 24.8 24.3 0.4 p.p. (0.2) p.p.
1Q13 4Q12 3Q12
R$ million (unless otherwise stated)
1Q14 4Q13 3Q13 2Q13
Variation %
2Q14

(1) The second quarter of 2014 includes the latest data released by Susep (May/14).
Note: For purposes of comparison between the indexes for the aforementioned periods, the effects of non-recurring events have not been considered.

837
964
930 931
878
1,001
1,040
1,072
86.5 86.6 86.0 85.5 86.9 86.1 86.4 86.3
5.0 4.2 4.3 4.1 4.9 4.3 4.7 4.0
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Net Income Combined Ratio (1) Administrative Efficiency
Press Release
18 Report on Economic and Financial Analysis – June 2014
Summarized Analysis of Adjusted Income
Income increased by 22.2% in the second quarter
of 2014, compared to the previous quarter, driven
by the Life and Pension Plans, Auto/RE and
Capitalization Bonds products, which grew 46.2%,
10.9% and 7.1%, respectively.
Net income in the second quarter of 2014 was
3.1% higher compared to previous quarter, mainly
due to: (i) 22.2% increase in revenue; (ii) improved
financial results; (iii) stability of the claims ratio; and
(iv) improved administrative efficiency ratio.
Production increased 5.2% in the first half of 2014
when compared to the same period in the previous
year. This result was led by Auto RE, Health and
Capitalization Bond products, which grew 31.5%,
21.1% and 18.3%, respectively.
Net income in the first half of 2014 was 13.5%
higher compared to the same period in the previous
year, due to: (i) 5.2% increase in revenue; (ii)
improved financial and equity income; (iii) reduced
expense and claims ratio; and (iv) maintenance of
the administrative efficiency ratio.
Grupo Bradesco Seguros maintains its capital
levels in compliance with regulatory requirements
and global standards (Solvency II), with leverage of
2.7 times its Shareholders’ Equity in the period.



Press Release
Bradesco 19

Summarized Analysis of Adjusted Income
Fee and Commission Income

In the second quarter of 2014, fee and commission
income amounted to R$ 5,328 million, up
R$ 45 million over the previous quarter, mainly as
a result of an increase in business volume. The
revenues that contributed most to such increase
were: (i) loans; (ii) checking account; (iii) card
income; (iv) fund management; and (v) consortium
management; these were partially offset by: (vi)
reduced revenues from underwriting/financial
advisory services, which had recorded an excellent
performance in the previous quarter.
In the comparison between the first half of 2014
and the same period of the previous year, the
increase of R$ 1.030 million, or 10.7%, is mostly
due to the increased customer base combined with
higher volume of operations, resulting from
ongoing investments in customer service channels
and technology. It is important to note that the
revenues that contributed most to this result come
from: (i) a good performance of the credit card
segment, due to the increase in (a) income; and (b)
number of transactions; (ii) the higher income from
checking accounts, resulting from an increase in

business volume and in the account holder base,
which posted a net growth of 251,000 active
accounts in the period; (iii) higher income from
loans, due to the greater volume of operations and
sureties and guarantees in the period; and revenue
gains in: (iv) consortium management; and (v)
collection.



4,438
4,675 4,599
4,983 4,977
5,227 5,283 5,328
25.6 25.7 25.8
26.2
26.4 26.4
26.6 26.5
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Fee and Commission Income Active Checking Account Holders - million
Press Release
20 Report on Economic and Financial Analysis – June 2014
Summarized Analysis of Adjusted Income
Personnel Expenses

In the second quarter of 2014, the
R$ 169 million increase from the previous quarter
is a result of variations in:
? structural expenses – increase of
R$ 81 million, mainly due to the reduced
number of vacation leaves in the second
quarter of 2014; and

? non-structural – increase of
R$ 88 million, which resulted mainly from
increased expenses with: (i) provision for
labor claims; (ii) employee and
management profit sharing expenses; and
(iii) training sessions.
In the comparison between the first half of 2014
and the same period of the previous year, the
R$ 477 million increase was mainly due to:
? a R$ 320 million increase in structural
expenses, resulting from greater expenses
with salaries, social charges and benefits,
due to raise in salary levels, as per
respective collective bargaining
agreements; and


? non-structural expenses totaling
R$ 157 million, which result particularly
from greater expenses with: (i) employee
and management profit sharing expenses;
and (ii) provision for labor claims.






Note: Structural Expenses = Salaries + Social Charges + Benefits + Pension Plans.
Non-Structural Expenses = Employee and Management Profit Sharing + Training + Labor Provision + Costs with Termination of Employment Contracts.
2,548 2,569
2,490 2,563
2,690 2,732
2,646
2,727
571 573
569
628
656
733
633
721
3,119 3,142
3,059
3,191
3,346
3,465
3,279
3,448
104,100
103,385
102,793
101,951 101,410
100,489
99,545 99,027
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Structural Non-Structural Employees
Press Release
Bradesco 21

Summarized Analysis of Adjusted Income
Administrative Expenses
Despite the higher expenses with (i) the opening of
2,379 service points in the period, mainly Bradesco
Expresso points, bringing the number of service
points on June 30, 2014 to a total of 73,208, and
(ii) increased business and service volumes in the
period, administrative expenses increased only
0.4% in the comparison between the first half of
2014 and the same period in the previous year, as
a result of the continued efforts to reduce costs led
by our Efficiency Committee, which included
revision of processes and ongoing investments in
technology. It is worth noting that IPCA and IGP-M
inflation indexes reached 6.52% and 6.25% in the
last 12 months, respectively.
In the second quarter of 2014, the 2.6% increase in
administrative expenses, compared to the previous
quarter, was mainly due to increased business and
service volumes in the quarter, which ultimately

generated higher expenses with: (i) maintenance
and preservation of assets; (ii) data processing; (iii)
outsourced services; (iv) depreciation and
amortization; and (v) materials.



Other Operating Income and Expenses
Other operating expenses, net of other operating
income, totaled R$ 1,333 million in the second
quarter of 2014, down R$ 58 million over the
previous quarter. In the comparison between the
first half of 2014 and the same period of the
previous year, the R$ 407 million increase is mainly
due to: (i) greater expenses with operating
provisions, mainly liability contingencies; and (ii)
greater expenses with Credit Card sales.





3,565
3,755
3,455
3,578
3,631
3,848
3,486
3,575
67,225
68,917
69,528
70,829
71,724
72,736
73,320 73,208
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Administrative Expenses Service Points - Units
(1,054)
(1,130)
(1,170)
(1,147)
(1,194)
(1,232)
(1,391)
(1,333)
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Press Release
22 Report on Economic and Financial Analysis – June 2014
Summarized Analysis of Adjusted Income
Income Tax and Social Contribution
Income tax and social contribution increased
18.4% over the previous quarter and 32.2% year-
over-year, mainly due to: (i) the increase in taxable
result; and (ii) the non-use of the full tax benefit in
this quarter due to interim dividends provisioned in
the second quarter of 2014 over interest on
shareholders’ equity. The income tax and social
contribution (IR/CS) rate stood at 36.6% in the
second quarter of 2014.






Unrealized Gains
Unrealized gains totaled R$ 21,673 million in the
second quarter of 2014, a R$ 6,695 million
increase from the previous quarter. Such variation
was mainly driven by the appreciation of: (i) our
investments, especially our Cielo shares, which
went up by 25.8% in the quarter; and (ii) fixed
income securities.








1,455
1,488
1,538 1,553
1,638
1,696
1,871
2,215
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
21,096
24,880
20,326
12,006
10,035
13,868
14,978
21,673
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
Press Release
Bradesco 23

Economic Scenario
In general, the international financial markets
managed to maintain low volatility rates throughout
the second quarter. Recent positive news
regarding various U.S. economic indicators,
following the negative impacts of a gloomy
scenario in the beginning of the year, indicate that
the recovery of the world’s leading economy is on
a sustainable path. Looking forward, there is a
general consensus regarding the gradual and well-
announced reduction of monetary incentives by the
Federal Reserve, whose initiatives tend to support
this recovery process.
In the Eurozone, the European Central Bank
increased monetary incentives in attempt to
mitigate the risks of deflation in the region. The
Chinese economy has shown signs of growth
stabilization, albeit at a lower level compared to last
year, eliminating all concerns over a potential hard
landing scenario.
In the commodities market, geopolitical aspects
have raised some concern regarding oil supply,
representing one of the key threats to the global
economic recovery. On the other hand, bearish
pressures prevail in other segments, particularly in
the grain and iron ore sectors. The drop in price for
most primary goods and the upward trend of long
interest-rates in the U.S. represent even greater
hurdles to macroeconomic policy management in
emerging countries.
Meanwhile, the very same global scenario may
also generate some valuable opportunities,
especially for countries that adopt effective
economic and institutional differentiation
measures. In this sense, Brazil should look toward
continuously reinforcing its commitment towards
healthy economic policies. Such efforts must be
perceived by society as a value in itself, one which
represents a requirement for the maintenance of

macroeconomic visibility and income gains, in
addition to boosting the confidence level among
economic agents.
Indicators for Domestic economic activities have
been modest, further highlighting the relevance of
structural initiatives aimed at promoting future
growth. The constant search for excellence in
education is Brazil’s front line in its battle to
become more competitive and to expedite its
efforts to upgrade infrastructure. It is always
important to remind that, in the long term, the main
source of economic growth is productivity, which
becomes an even more relevant topic within a
global context characterized by high levels of
efficiency.
Productive investments tend to play an increasingly
relevant role in the composition of growth over the
next few years, which should be favored by the
increased share of the capital market in funding of
infrastructure projects. At the same time, despite
the shift in consumer market expansion levels in
some segments, the potential of domestic demand
for goods and services has yet to be depleted, and
there is still much room for growth. Income gains,
employment formalization, diversification of
consumption habits and social mobility are still key
influential factors.
Bradesco maintains a positive outlook towards
Brazil, with favorable perspectives for its operating
segments. Credit volume is growing at sustainable
and risk-compatible rates, whereas delinquency
rates are stabilized at historically low and controlled
levels. The scenario is still very promising for the
Brazilian banking and insurance sectors.




Press Release
24 Report on Economic and Financial Analysis – June 2014
Main Economic Indicators


Interbank Deposit Certif icate (CDI) 2.51 2.40 2.31 2.12 1.79 1.61 1.70 1.91 4.97 3.43
Ibovespa 5.46 (2.12) (1.59) 10.29 (15.78) (7.55) 3.00 8.87 3.22 (22.14)
USD – Commercial Rate (2.67) (3.40) 5.05 0.65 10.02 (1.45) 0.64 0.46 (5.98) 8.42
General Price Index - Market (IGP-M) (0.10) 2.55 1.75 1.92 0.90 0.85 0.68 3.79 2.45 1.75
Extended Consumer Price Index (IPCA) – Brazilian
Institute of Geography and Statistics (IBGE) 1.54 2.18 2.04 0.62 1.18 1.94 1.99 1.42 3.75 3.15
Federal Government Long-Term Interest Rate (TJLP) 1.24 1.24 1.24 1.24 1.24 1.24 1.36 1.36 2.49 2.49
Ref erence Interest Rate (TR) 0.15 0.19 0.16 0.03 - - - 0.03 0.35 -
Savings Account (Old Rule)
(1)
1.66 1.70 1.67 1.54 1.51 1.51 1.51 1.53 3.39 3.04
Savings Account (New Rule)
(1)
1.66 1.70 1.67 1.47 1.30 1.25 1.26 1.40 3.39 2.56
Business Days (number) 61 61 64 66 63 60 62 64 122 123
Indicators (Closing Rate) Jun14 Mar14 Dec13 Sept13 Jun13 Mar13 Dec12 Sept12 Jun14 Jun13
USD – Commercial Selling Rate - (R$) 2.2025 2.2630 2.3426 2.2300 2.2156 2.0138 2.0435 2.0306 2.2025 2.2156
Euro - (R$) 3.0150 3.1175 3.2265 3.0181 2.8827 2.5853 2.6954 2.6109 3.0150 2.8827
Country Risk (points) 208 228 224 236 237 189 142 166 208 237
Basic Selic Rate Copom (% p.a.) 11.00 10.75 10.00 9.00 8.00 7.25 7.25 7.50 11.00 8.00
BM&F Fixed Rate (% p.a.) 10.91 11.38 10.57 10.07 9.39 7.92 7.14 7.48 10.91 9.39
1H14 1H13 2Q13 Main Indicators (%) 3Q12 4Q12 1Q13 3Q13 4Q13 1Q14 2Q14

(1) Regarding the new savings account yield rule, it was defined that: (i) existing deposits up to May 3, 2012 will continue to yield at
TR + interest of 6.17% p.a.; and (ii) for deposits made as of May 4, 2012, the new rules are: (a) if the Selic rate is higher than
8.5% p.a., a yield of TR + 6.17% p.m. interest will be maintained; and (b) if the Selic rate is equal or lower than 8.5% p.a., the
yield will be 70% of Selic rate + TR.

Projections for 2016

% 2014 2015 2016
USD - Commercial Rate (year-end) - R$ 2.35 2.45 2.55
Extended Consumer Price Index (IPCA) 6.40 6.00 5.50
General Price Index - Market (IGP-M) 5.00 5.50 5.00
Selic (year-end) 11.00 11.00 10.00
Gross Domestic Product (GDP) 1.00 1.50 3.00

Press Release
Bradesco 25

Guidance

Bradesco’s Outlook for 2014

This guidance contains forward-looking statements that are subject to risks and uncertainties, as they are
based on Management’s expectations and assumptions and information available to the market as of the date
hereof.

Loan Portfolio
(1)
10 to 14 %
Individuals 11 to 15 %
Companies 9 to 13 %
NII - Interest Earning Portion 6 a 10 %
Fee and Commission Income 9 to 13 %
Operating Expenses
(2)
3 to 6 %
Insurance Premiums 9 to 12 %

(1) Expanded Loan Portfolio; and
(2) Administrative and Personnel Expenses.



Press Release
26 Report on Economic and Financial Analysis – June 2014
Book Income vs. Managerial Income vs. Adjusted Income Statement
Analytical Breakdown of Book Income vs. Managerial Income vs. Adjusted Income Statement
Second Quarter of 2014
R$ million

(1) (2) (3) (4) (5) (6)
Net Interest Income 14,274 (334) (143) (248) (922) - - (561) 12,066 - 12,066
ALL (3,645) - - - 637 (133) - - (3,141) - (3,141)
Gross Income from Financial Intermediation 10,629 (334) (143) (248) (285) (133) - (561) 8,925 - 8,925
Income f romInsurance, Pension Plans and Capitalization Bonds
(9)
1,270 - - - - - - - 1,270 - 1,270
Fee and Commission Income 5,226 - - - - - 102 - 5,328 - 5,328
Personnel Expenses (3,448) - - - - - - - (3,448) - (3,448)
Other Administrative Expenses (3,607) - - - - - 32 - (3,575) - (3,575)
Tax Expenses (1,169) - - - (12) - - 61 (1,120) - (1,120)
Equity in the Earnings (Losses) of Unconsolidated
Companies 35 - - - - - - - 35 - 35
Other Operating Income/Expenses (2,298) 334 143 248 297 33 (134) - (1,376) 43 (1,333)
Operating Result 6,639 - - - - (100) - (500) 6,039 43 6,082
Non-Operating Result (134) - - - - 100 - - (34) - (34)
Income Tax / Social Contribution and Non-controlling Interest (2,727) - - - - - - 500 (2,227) (17) (2,244)
Net Income 3,778 - - - - - - - 3,778 26 3,804
2Q14
Non-recurring
Events
(8)
Adjusted
Income
Statement
Book
Income
Statement
Fiscal
Hedge
(7)
Managerial
Income
Statement
Reclassifications

(1) Expenses with Commission on the Placement of Loans and Financing were reclassified from the item “Other Operating Expenses” to the item “Net Interest Income;”
(2) Interest Income/Expenses from the insurance segment were reclassified from the item “Other Operating Income/Expenses” to the item “Net Interest Income;”
(3) Interest Income/Expenses from the financial segment were reclassified from the item “Other Operating Income/Expenses” to the item “Net Interest Income;”
(4) Income from Loan Recovery classified under the item “Net Interest Income”; Expenses with Discounts Granted, classified under the item “Other Operating Income/Expenses”; and Expenses with Write-offs of Leasing Operations,
classified under the item “Net Interest Income”, were reclassified to the item “Provision for Loan Loss (ALL) Expenses”; Tax Expenses, classified as “Other Operating Expenses”, were reclassified under the item “Tax Expenses”;
and Expenses with Provision for Guarantees Provided, classified as “Other Operating Expenses”, were reclassified to the item “Provision for Loan Loss (ALL) Expenses”;
(5) Losses/Gains from the Sale of Foreclosed Assets/Investments classified under the item “Non-Operating Result” were reclassified to items “Provision for Loan Loss (ALL) Expenses”/“Other Operating Income/Expenses”;
(6) Income from Card Fees and Commissions, Insurance Premium Commissions and Insurance Policy Fees classified under “Other Operating Income/Expenses” were reclassified to the item “Fee and Commission Income”; and
Credit Card Operation Interchange Expenses classified under the item “Other Operating Income/Expenses” were reclassified to the item “Other Administrative Expenses”;
(7) Partial result of Derivatives used to hedge investments abroad – which, in terms of Net Income, simply annuls the tax effects (Income Tax/Social Contribution (IR/CS) and Social Integration Program/Contribution for Social Security
Financing (PIS/Cofins)) of this hedge strategy;
(8) For more information see page 8 of this chapter; and
(9) Income from Insurance, Pension Plans and Capitalization Bonds = Insurance, Pension Plan and Capitalization Bond Retained Premiums – Changes in Technical Reserves for Insurance, Pension Plans and Capitalization Bonds
– Retained Claims – Capitalization Bond Draws and Redemption – Insurance, Pension Plan and Capitalization Bond Sales Expenses.

Press Release
Bradesco 27

Book Income vs. Managerial Income vs. Adjusted Income Statement

Analytical Breakdown of Book Income vs. Managerial Income vs. Adjusted Income Statement
First Quarter of 2014
R$ million

(1) (2) (3) (4) (5) (6)
Net Interest Income 12,770 (332) 64 (113) (804) - - (623) 10,962 - 10,962
ALL (3,251) - - - 496 (106) - - (2,861) - (2,861)
Gross Income from Financial Intermediation 9,519 (332) 64 (113) (308) (106) - (623) 8,101 - 8,101
Income f romInsurance, Pension Plans and Capitalization Bonds
(9)
1,244 - - - - - - - 1,244 - 1,244
Fee and Commission Income 5,190 - - - - - 93 - 5,283 - 5,283
Personnel Expenses (3,279) - - - - - - - (3,279) - (3,279)
Other Administrative Expenses (3,515) - - - - - 29 - (3,486) - (3,486)
Tax Expenses (1,141) - - - (12) - - 39 (1,114) - (1,114)
Equity in the Earnings (Losses) of Unconsolidated
Companies 52 - - - - - - - 52 - 52
Other Operating Income/Expenses (2,052) 332 (64) 113 320 33 (122) - (1,441) 50 (1,391)
Operating Result 6,018 - - - - (73) - (584) 5,360 50 5,410
Non-Operating Result (109) - - - - 73 - - (36) - (36)
Income Tax / Social Contribution and Non-controlling Interest (2,465) - - - - - - 584 (1,881) (20) (1,901)
Net Income 3,443 - - - - - - - 3,443 30 3,473
1Q14
Reclassifications
Non-recurring
Events
(8)
Adjusted
Income
Statement
Book
Income
Statement
Fiscal
Hedge
(7)
Managerial
Income
Statement

(1) Expenses with Commission on the Placement of Loans and Financing were reclassified from the item “Other Operating Expenses” to the item “Net Interest Income;”
(2) Interest Income/Expenses from the insurance segment were reclassified from the item “Other Operating Income/Expenses” to the item “Net Interest Income;”
(3) Interest Income/Expenses from the financial segment were reclassified from the item “Other Operating Income/Expenses” to the item “Net Interest Income;”
(4) Income from Loan Recovery classified under the item “Net Interest Income”; Expenses with Discounts Granted, classified under the item “Other Operating Income/Expenses”; and Expenses with Write-offs of Leasing Operations,
classified under the item “Net Interest Income”, were reclassified to the item “Provision for Loan Loss (ALL) Expenses”; Tax Expenses, classified as “Other Operating Expenses”, were reclassified under the item “Tax Expenses”;
and Expenses with Provision for Guarantees Provided, classified as “Other Operating Expenses”, were reclassified to the item “Provision for Loan Loss (ALL) Expenses”;
(5) Losses/Gains from the Sale of Foreclosed Assets/Investments classified under the item “Non-Operating Result” were reclassified to items “Provision for Loan Loss (ALL) Expenses”/“Other Operating Income/Expenses”;
(6) Income from Card Fees and Commissions, Insurance Premium Commissions and Insurance Policy Fees classified under “Other Operating Income/Expenses” were reclassified to the item “Fee and Commission Income”; and
Credit Card Operation Interchange Expenses classified under the item “Other Operating Income/Expenses” were reclassified to the item “Other Administrative Expenses”;
(7) Partial result of Derivatives used to hedge investments abroad – which, in terms of Net Income, simply annuls the tax effects (Income Tax/Social Contribution (IR/CS) and Social Integration Program/Contribution for Social Security
Financing (PIS/Cofins)) of this hedge strategy;
(8) For more information see page 8 of this chapter; and
(9) Income from Insurance, Pension Plans and Capitalization Bonds = Insurance, Pension Plan and Capitalization Bond Retained Premiums – Changes in Technical Reserves for Insurance, Pension Plans and Capitalization Bonds
– Retained Claims – Capitalization Bond Draws and Redemption – Insurance, Pension Plan and Capitalization Bond Sales Expenses.

Press Release
28 Report on Economic and Financial Analysis – June 2014
Book Income vs. Managerial Income vs. Adjusted Income Statement

Analytical Breakdown of Book Income vs. Managerial Income vs. Adjusted Income Statement
First Half of 2014
R$ million

(1) (2) (3) (4) (5) (6)
Net Interest Income 27,044 (666) (79) (361) (1,726) - - (1,184) 23,028 - 23,028
ALL (6,896) - - - 1,133 (239) - - (6,002) - (6,002)
Gross Income from Financial Intermediation 20,148 (666) (79) (361) (593) (239) - (1,184) 17,026 - 17,026
Income f romInsurance, Pension Plans and Capitalization Bonds
(9)
2,514 - - - - - - - 2,514 - 2,514
Fee and Commission Income 10,416 - - - - - 195 - 10,611 - 10,611
Personnel Expenses (6,727) - - - - - - - (6,727) - (6,727)
Other Administrative Expenses (7,122) - - - - - 61 - (7,061) - (7,061)
Tax Expenses (2,310) - - - (24) - - 100 (2,234) - (2,234)
Equity in the Earnings (Losses) of Unconsolidated
Companies 87 - - - - - - - 87 - 87
Other Operating Income/Expenses (4,350) 666 79 361 617 66 (256) - (2,817) 93 (2,724)
Operating Result 12,656 - - - - (173) - (1,084) 11,399 93 11,492
Non-Operating Result (243) - - - - 173 - - (70) - (70)
Income Tax / Social Contribution and Non-controlling Interest (5,192) - - - - - - 1,084 (4,108) (37) (4,145)
Net Income 7,221 - - - - - - - 7,221 56 7,277
1H14
Non-recurring
Events
(8)
Adjusted
Income
Statement
Managerial
Income
Statement
Book
Income
Statement
Fiscal
Hedge
(7)
Reclassifications

(1) Expenses with Commission on the Placement of Loans and Financing were reclassified from the item “Other Operating Expenses” to the item “Net Interest Income;”
(2) Interest Income/Expenses from the insurance segment were reclassified from the item “Other Operating Income/Expenses” to the item “Net Interest Income;”
(3) Interest Income/Expenses from the financial segment were reclassified from the item “Other Operating Income/Expenses” to the item “Net Interest Income;”
(4) Income from Loan Recovery classified under the item “Net Interest Income”; Expenses with Discounts Granted, classified under the item “Other Operating Income/Expenses”; and Expenses with Write-offs of Leasing Operations,
classified under the item “Net Interest Income”, were reclassified to the item “Provision for Loan Loss (ALL) Expenses”; Tax Expenses, classified as “Other Operating Expenses”, were reclassified under the item “Tax Expenses”;
and Expenses with Provision for Guarantees Provided, classified as “Other Operating Expenses”, were reclassified to the item “Provision for Loan Loss (ALL) Expenses”;
(5) Losses/Gains from the Sale of Foreclosed Assets/Investments classified under the item “Non-Operating Result” were reclassified to items “Provision for Loan Loss (ALL) Expenses”/“Other Operating Income/Expenses”;
(6) Income from Card Fees and Commissions, Insurance Premium Commissions and Insurance Policy Fees classified under “Other Operating Income/Expenses” were reclassified to the item “Fee and Commission Income”; and
Credit Card Operation Interchange Expenses classified under the item “Other Operating Income/Expenses” were reclassified to the item “Other Administrative Expenses”;
(7) Partial result of Derivatives used to hedge investments abroad – which, in terms of Net Income, simply annuls the tax effects (Income Tax/Social Contribution (IR/CS) and Social Integration Program/Contribution for Social Security
Financing (PIS/Cofins)) of this hedge strategy;
(8) For more information see page 8 of this chapter; and
(9) Income from Insurance, Pension Plans and Capitalization Bonds = Insurance, Pension Plan and Capitalization Bond Retained Premiums – Changes in Technical Reserves for Insurance, Pension Plans and Capitalization Bonds
– Retained Claims – Capitalization Bond Draws and Redemption – Insurance, Pension Plan and Capitalization Bond Sales Expenses.

Press Release
Bradesco 29

Book Income vs. Managerial Income vs. Adjusted Income Statement

Analytical Breakdown of Book Income vs. Managerial Income vs. Adjusted Income Statement
First Half of 2013

R$ million

(1) (2) (3) (4) (5) (6)
Net Interest Income 21,933 (652) 53 (83) (1,520) 168 - 1,394 21,293 - 21,293
ALL (7,083) - - - 1,015 (135) - - (6,203) - (6,203)
Gross Income from Financial Intermediation 14,850 (652) 53 (83) (505) 33 - 1,394 15,090 - 15,090
Income f romInsurance, Pension Plans and Capitalization Bonds
(9)
2,183 - - - - - - - 2,183 - 2,183
Fee and Commission Income 9,395 - - - - - 188 - 9,582 - 9,582
Personnel Expenses (6,250) - - - - - - - (6,250) - (6,250)
Other Administrative Expenses (6,898) - - - - - (135) - (7,033) - (7,033)
Tax Expenses (1,968) - - - (20) - - (151) (2,140) - (2,140)
Equity in the Earnings (Losses) of Unconsolidated
Companies 15 - - - - - - - 15 - 15
Other Operating Income/Expenses (3,606) 652 (53) 83 525 48 (53) - (2,404) 88 (2,317)
Operating Result 7,720 - - - - 81 - 1,243 9,044 88 9,130
Non-Operating Result 18 - - - - (81) - - (63) - (62)
Income Tax / Social Contribution and Non-controlling Interest (1,870) - - - - - - (1,243) (3,113) (35) (3,147)
Net Income 5,868 - - - - - - - 5,868 53 5,921
1H13
Reclassifications
Non-recurring
Events
(8)
Fiscal
Hedge
(7)
Book
Income
Statement
Managerial
Income
Statement
Adjusted
Income
Statement

(1) Expenses with Commission on the Placement of Loans and Financing were reclassified from the item “Other Operating Expenses” to the item “Net Interest Income;”
(2) Interest Income/Expenses from the insurance segment were reclassified from the item “Other Operating Income/Expenses” to the item “Net Interest Income;”
(3) Interest Income/Expenses from the financial segment were reclassified from the item “Other Operating Income/Expenses” to the item “Net Interest Income;”
(4) Income from Loan Recovery classified under the item “Net Interest Income”; Expenses with Discounts Granted classified under the item “Other Operating Income/Expenses”; and Expenses with Write-offs of Leasing Operations
classified under the item “Net Interest Income” were reclassified to the item “Provision for Loan Loss (ALL) Expenses”; and Tax Expenses, classified as “Other Operating Expenses”, were reclassified under the item “Tax Expenses”;
(5) Losses/Gains from the Sale of Foreclosed Assets/Investments classified under the item “Non-Operating Result” were reclassified to items “Provision for Loan Loss (ALL) Expenses”/“Other Operating Income/Expenses”/“Net
Interest Income”;
(6) Income from Card Fees and Commissions, Insurance Premium Commissions and Insurance Policy Fees classified under “Other Operating Income/Expenses” were reclassified to the item “Fee and Commission Income”; and
Credit Card Operation Interchange Expenses classified under the item “Other Operating Income/Expenses” were reclassified to the item “Other Administrative Expenses”;
(7) Partial result of Derivatives used to hedge investments abroad – which, in terms of Net Income, simply annuls the tax effects (Income Tax/Social Contribution (IR/CS) and Social Integration Program/Contribution for Social Security
Financing (PIS/Cofins)) of this hedge strategy;
(8) For more information see page 8 of this chapter; and
(9) Income from Insurance, Pension Plans and Capitalization Bonds = Insurance, Pension Plan and Capitalization Bond Retained Premiums – Changes in Technical Reserves for Insurance, Pension Plans and Capitalization Bonds
– Retained Claims – Capitalization Bond Draws and Redemption – Insurance, Pension Plan and Capitalization Bond Sales Expenses.

Press Release
30 Report on Economic and Financial Analysis – June 2014
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Economic and Financial Analysis
2
Management, Preparation
and Disclosure of the
Report on Economic and
Financial Analysis and the
Consolidated Financial
Statements of Bradesco
Organization
8
Economic and Financial Analysis
32 Report on Economic and Financial Analysis – June 2014
Consolidated Statement of Financial Position and Adjusted Income Statement
Statement of Financial Position
R$ million
Jun14 Mar14 Dec13 Sept13 Jun13 Mar13 Dec12 Sept12
Assets
Current and Long-Term Assets 915,986 906,760 892,495 892,363 881,121 879,192 864,279 840,295
Cash and Cash Equivalents 11,535 12,110 12,196 16,427 16,180 11,347 12,077 12,944
Interbank Investments 137,654 127,014 135,456 144,967 147,485 171,333 151,813 126,772
Securities and Derivative Financial Instruments 333,200 321,970 313,327 313,679 309,027 300,600 315,487 319,537
Interbank and Interdepartmental Accounts 56,115 61,740 56,995 52,121 52,150 52,769 49,762 56,276
Loan and Leasing Operations 302,276 301,914 296,629 286,899 281,982 276,022 267,940 262,748
Allowance f or Loan Losses (ALL)
(1)
(21,458) (21,051) (21,349) (21,476) (21,455) (21,359) (21,299) (20,915)
Other Receivables and Assets 96,664 103,063 99,241 99,746 95,752 88,480 88,499 82,933
Permanent Assets 15,146 15,469 15,644 15,331 15,576 15,275 14,813 15,993
Investments 1,887 1,871 1,830 1,910 1,920 1,867 1,865 1,907
Premises and Leased Assets 4,579 4,597 4,668 4,392 4,464 4,550 4,678 4,500
Intangible Assets 8,680 9,001 9,146 9,029 9,192 8,858 8,270 9,586
Total 931,132 922,229 908,139 907,694 896,697 894,467 879,092 856,288
*
Reserve Requirements
Current and Long-Term Liabilities 853,622 847,794 835,917 839,393 829,426 823,788 807,799 789,036
Deposits 213,270 218,709 218,063 216,778 208,485 205,870 211,858 212,869
Federal Funds Purchased and Securities Sold under
Agreements to Repurchase
255,611 250,716 256,279 258,580 266,825 281,045 255,591 245,538
Funds f rom Issuance of Securities 69,877 64,511 57,654 55,427 53,821 47,832 51,359 53,810
Interbank and Interdepartmental Accounts 5,673 5,343 6,864 4,806 3,793 3,815 5,667 3,649
Borrowing and Onlending 54,142 56,724 56,095 51,307 49,121 46,209 44,187 45,399
Derivative Financial Instruments 4,727 3,894 1,808 3,238 3,141 2,590 4,001 4,148
Reserves f or Insurance, Pension Plans and Capitalization Bonds 142,732 137,751 136,229 133,554 131,819 127,367 124,217 117,807
Other Reserve Requirements 107,590 110,146 102,925 115,703 112,421 109,060 110,919 105,816
Deferred Income 224 560 677 676 661 632 658 619
Non-controlling Interest in Subsidiaries 486 549 605 592 582 605 588 586
Shareholders' Equity 76,800 73,326 70,940 67,033 66,028 69,442 70,047 66,047
Total 931,132 922,229 908,139 907,694 896,697 894,467 879,092 856,288

(1) Including the allowance for guarantees provided, in June 2014, the allowance for loan losses totaled R$ 21,791 million.




Economic and Financial Analysis
Bradesco 33
Consolidated Statement of Financial Position and Adjusted Income Statement
Adjusted Income Statement
R$ million
2Q14 1Q14 4Q13 3Q13 2Q13 1Q13 4Q12 3Q12
Net Interest Income 12,066 10,962 11,264 10,729 10,587 10,706 11,109 10,955
- Interest Earning Portion 11,854 10,951 10,986 10,622 10,569 10,509 10,678 10,603
- Non-interest Earning Portion 212 11 278 107 18 197 431 352
ALL (3,141) (2,861) (2,961) (2,881) (3,094) (3,109) (3,210) (3,303)
Gross Income from Financial Intermediation 8,925 8,101 8,303 7,848 7,493 7,597 7,899 7,652
Income f rom Insurance, Pension Plans and Capitalization
Bonds
(1)
1,270 1,244 1,188 1,100 1,028 1,155 955 1,029
Fee and Commission Income 5,328 5,283 5,227 4,977 4,983 4,599 4,675 4,438
Personnel Expenses (3,448) (3,279) (3,465) (3,346) (3,191) (3,059) (3,142) (3,119)
Other Administrative Expenses (3,575) (3,486) (3,848) (3,631) (3,578) (3,455) (3,755) (3,565)
Tax Expenses (1,120) (1,114) (1,254) (987) (1,017) (1,123) (1,098) (1,038)
Equity in the Earnings (Losses) of Unconsolidated Companies 35 52 26 2 12 3 45 45
Other Operating Income/ (Expenses) (1,333) (1,391) (1,232) (1,194) (1,147) (1,170) (1,130) (1,054)
Operating Result 6,082 5,410 4,945 4,769 4,583 4,547 4,449 4,388
Non-Operating Result (34) (36) (31) (27) (24) (38) (29) (20)
Income Tax and Social Contribution (2,215) (1,871) (1,696) (1,638) (1,553) (1,538) (1,488) (1,455)
Non-controlling Interest (29) (30) (19) (22) (28) (28) (14) (20)
Adjusted Net Income 3,804 3,473 3,199 3,082 2,978 2,943 2,918 2,893

(1) Income from Insurance, Pension Plans and Capitalization Bonds = Insurance, Pension Plan and Capitalization Bond Retained
Premiums – Variation in Technical Reserves for Insurance, Pension Plans and Capitalization Bonds – Retained Claims – Capitalization
Bond Draws and Redemption – Insurance, Pension Plan and Capitalization Bond Sales Expenses.
NII - Interest and Non-Interest Earning Portion
Net Interest Income Breakdown




10,603 10,678 10,509 10,569 10,622
10,986 10,951
11,854
352
431
197 18 107
278
11
212
10,955
11,109
10,706
10,587
10,729
11,264
10,962
12,066
7.6% 7.6%
7.3%
7.2%
7.1%
7.3%
7.2%
7.8%
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Non-Interest Earning Portion
Interest Earning Portion
Average Net Interest Margin = (Net Interest Income / Total Average Assets - Repos - Permanent Assets) Annualized
Economic and Financial Analysis
34 Report on Economic and Financial Analysis – June 2014
NII - Interest and Non-Interest Earning Portion
Net Interest Margin
Half Quarter
Interest - due to volume 2,235 13
Interest - due to spread (508) 890
- NII - Interest Earning Portion 22,805 21,078 11,854 10,951 1,727 903
- NII - Non-Interest Earning Portion 223 215 212 11 8 201
Net Interest Income 23,028 21,293 12,066 10,962 1,735 1,104
Average NIM
(1)
7.4% 7.2% 7.8% 7.2%
Net Interest Income
R$ million
Variation
1H14 1H13 2Q14 1Q14
(1) Average Net Interest Income Rate = (Net Interest Income/Average Assets – Repos – Permanent Assets) Annualized
In the comparison between the second quarter of 2014 and the previous quarter, the R$ 1,104 million increase
was mainly due to the greater: (i) interest earning portion, totaling R$ 903 million, particularly regarding the
Securities/Other, Loan and Funding businesses; and (ii) the non-interest earning portion, totaling R$ 201
million, basically related to the Insurance business.
In the comparison between the first half of 2014 and the same period of the previous year, net interest income
rose by R$ 1,735 million, mainly due to: (i) higher interest earning portion, totaling R$ 1,727 million, due to an
increased business volume, particularly in the Loan and Funding business lines.
NII - Interest Earning Portion
Interest Earning Portion Breakdown
Half Quarter
Loans 15,678 15,048 7,967 7,711 630 256
Funding 2,984 2,061 1,570 1,415 923 155
Insurance 2,045 1,828 1,081 964 217 117
Securities/Other 2,098 2,141 1,236 861 (43) 375
Interest Earning Portion 22,805 21,078 11,854 10,951 1,727 903
1H14 1H13
R$ million
Interest Earning Portion Breakdown
1Q14
Variation
2Q14

The interest earning portion stood at R$ 11,854 million in the second quarter of 2014, against
R$ 10,951 million recorded in the previous quarter, accounting for an increase of R$ 903 million. All business
lines contributed to this result, particularly: (i) Securities/Others; (ii) Loan; and (iii) Funding, broken down under
Securities/Other Margin - Interest Earning Operations, Credit Margin - Interest Earning Operations, and
Funding Margin - Interest Earning Operations.
In the comparison between the first half of 2014 and the same period of the previous year, the interest earning
portion of the NII was up R$ 1,727 million. The business lines that most contributed to this increase were Loan
and Funding.

Economic and Financial Analysis
Bradesco 35
NII - Interest Earning Portion
NII - Interest Earning Portion – Rates


The annualized interest financial margin stood at 7.7% in the second quarter of 2014, up
0.6 p.p. over the previous quarter, mainly due to an improvement of all business lines that make up the interest
earning portion, as illustrated in the table below.
NII - Interest Earning Portion – Annualized Average Rates
R$ million
Interest
Average
Balance
Average
Rate
Interest
Average
Balance
Average
Rate
Loans 15,678 337,264 9.8% 15,048 303,767 10.2%
Funding 2,984 369,896 1.7% 2,061 328,690 1.3%
Insurance 2,045 138,949 3.1% 1,828 128,330 2.9%
Securities/Other 2,098 335,130 1.3% 2,141 304,853 1.4%
*
Interest Earning Portion 22,805 - 7.4% 21,078 - 7.2%
*
2Q14 1Q14
Interest
Average
Balance
Average
Rate
Interest
Average
Balance
Average
Rate
Loans 7,967 339,341 10.1% 7,711 335,187 9.9%
Funding 1,570 365,285 1.8% 1,415 374,507 1.6%
Insurance 1,081 141,206 3.2% 964 136,692 2.9%
Securities/Other 1,236 324,770 1.6% 861 345,490 1.0%
*
Interest Earning Portion 11,854 - 7.7% 10,951 - 7.1%
1H14 1H13


10,603 10,678
10,509 10,569 10,622
10,986 10,951
11,854
7.4%
7.3%
7.2%
7.2%
7.0%
7.1%
7.1%
7.7%
7.5%
7.1%
7.9%
9.4%
10.1%
10.6%
11.4%
10.9%
7.8%
7.2%
7.1%
7.5%
8.5%
9.5%
10.4%
10.9%
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
NII - Interest Earning Portion
NIM = (NII - Interest Earning Portion/(Total Average Assets - Repos - Permanent Assets)) Annualized
BM&F Fixed Rate (1 year)
Average Selic Rate (annualized)
Economic and Financial Analysis
36 Report on Economic and Financial Analysis – June 2014
Credit Margin - Interest Earning Operations
Credit Margin - Interest Earning Operations – Breakdown
Half Quarter
Interest - due to volume 1,557 98
Interest - due to spread (927) 158
Interest Earning Portion 15,678 15,048 7,967 7,711 630 256
Income 27,790 26,478 14,127 13,663 1,312 464
Expenses (12,112) (11,430) (6,160) (5,952) (682) (208)
R$ million
Variation
1H14 1H13
Credit Margin - Interest Earning Operations
1Q14 2Q14

In the second quarter of 2014, financial margin with loan operations reached R$ 7,967 million, up R$ 256
million over the first quarter of 2014. The variation is the result of: (i) a R$ 158 million increase in the average
spread; and (ii) a R$ 98 million increase in average business volume.
In the comparison between the first half of 2014 and the same period of the previous year, the net interest rate
was up R$ 630 million. The variation is the result of: (i) a R$ 1.557 million increase in the volume of operations;
and partially offset by: (ii) a decrease in the average spread, amounting to R$ 927 million, affected mostly by
the change in loan portfolio mix.


Economic and Financial Analysis
Bradesco 37
Credit Margin - Interest Earning Operations
Net Credit Margin

The graph above presents a summary of loan activity. The Gross Margin line refers to interest income from
loans, net of opportunity cost (a specific rate by type of operation and term).
The ALL curve shows delinquency costs, which are represented by Allowance for Loan Losses (ALL)
expenses, plus discounts granted in transactions net of loan recoveries, arising from the sale of foreclosed
assets, among others. The increase in expenses for the second quarter of 2014 was partly due to: (i) a
decrease in delinquency levels for the previous quarter, due to a delay in the seasonal concentration of
expense payments by our customers – this seasonal effect produced only a mild impact, in the second quarter
of 2014; and (ii) by the adjustment of provision levels to specific occurrences in corporate client operations.
The net margin curve, which refers to loan interest income net of ALL, remained virtually stable in the second
quarter of 2014, compared to the previous quarter. In the comparison between the first half of 2014 and the
same period of the previous year, the net margin was up 9.4%, mainly due to: (i) increase in business volume;
and (ii) reduction in delinquency costs.




4,157
4,317
4,305
4,540
4,912 4,889 4,850
4,826
3,303
3,210
3,109
3,094 2,881
2,961
2,861
3,141
7,460
7,527
7,414
7,634
7,793 7,850 7,711
7,967
44.3%
42.6% 41.9% 40.5%
37.0% 37.7% 37.1%
39.4%
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Net Margin ALL Gross Margin ALL / Gross Margin %
Economic and Financial Analysis
38 Report on Economic and Financial Analysis – June 2014
Credit Margin - Interest Earning Operations
Expanded Loan Portfolio
(1)

In June 2014, the expanded loan portfolio stood at
R$ 435.2 billion, up 0.7% in the quarter and 8.1%
over the last 12 months.
In the quarter, we highlight the growth of 1.8% in
Individuals. The graph on the right shows that the
share of SMEs in the portfolio has decreased,
which is mostly due to a higher growth rate of
lower-risk products, namely payroll-deductible
loan, real estate financing and in the Corporations
segment.
The figures for the last 12 months were led by a
9.9% growth for Corporations and 9.6% for
Individuals.
(1) In addition to the loan portfolio, it includes sureties,
guarantees, letters of credit, advances of credit card
receivables, debentures, promissory notes, co-obligation in
receivables-backed investment funds (FIDC), mortgage-backed
receivables (CRI) and rural loans.
For further information, refer to page 44 herein.
? 8.1%
12 months
? 0.7%
Quarter


Expanded Loan Portfolio Breakdown by Product and Type of Customer (Individual and Corporate)
A breakdown of expanded loan portfolio products for Individuals is presented below:
Variation %
Jun14 Mar14 Jun13 Quarter 12M
Payroll-deductible Loan 28,727 28,100 24,262 2.2 18.4
CDC / Vehicle Leasing 25,248 26,030 29,303 (3.0) (13.8)
Credit Card 23,793 23,290 21,156 2.2 12.5
Personal Loans 16,694 16,602 16,049 0.6 4.0
Real Estate Financing 15,564 14,521 11,543 7.2 34.8
Rural Loans 9,350 8,813 6,752 6.1 38.5
BNDES/Finame Onlending 6,955 7,014 6,421 (0.8) 8.3
Overdraf t Facilities 3,982 3,792 3,455 5.0 15.3
Sureties and Guarantees 372 282 361 31.6 3.1
Other 4,382 4,208 3,959 4.1 10.7
Total 135,068 132,652 123,260 1.8 9.6
Individuals
R$ million

Individual segment operations grew by 1.8% in the quarter and 9.6% over the last 12 months. The lines that
contributed most to such increase were: (i) real estate financing; and (ii) payroll-deductible loan.

27.4% 27.3% 27.0% 26.9% 26.8% 26.4% 26.1% 25.8%
41.9%
42.3% 42.6%
42.5%
42.4%
43.0% 43.2% 43.2%
30.7%
30.4%
30.4%
30.6%
30.8%
30.6%
30.7% 31.0%
371.7
385.5
391.7
402.5
412.6 427.3 432.3 435.2
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ billion
SMEs Corporations Individuals
Economic and Financial Analysis
Bradesco 39
Credit Margin - Interest Earning Operations
A breakdown of expanded loan portfolio products for Corporations is presented below:
Variation %
Jun14 Mar14 Jun13 Quarter 12M
Working Capital 42,869 43,304 44,207 (1.0) (3.0)
BNDES/Finame Onlending 33,198 33,771 31,345 (1.7) 5.9
Operations Abroad 29,249 31,778 26,638 (8.0) 9.8
Real Estate Financing 21,739 20,900 14,168 4.0 53.4
Export Financing 16,118 15,814 16,024 1.9 0.6
CDC / Leasing 12,787 12,840 13,163 (0.4) (2.9)
Credit Card 12,649 13,053 13,590 (3.1) (6.9)
Overdraf t Account 11,054 11,060 10,540 - 4.9
Rural Loans 7,376 6,054 4,953 21.8 48.9
Sureties and Guarantees 69,504 67,235 63,022 3.4 10.3
Operations bearing Loan Risk - Commercial Portf olio
(1)
33,356 33,342 30,942 - 7.8
Other 10,264 10,495 10,664 (2.2) (3.8)
Total 300,163 299,645 279,257 0.2 7.5
Corporate
R$ million

(1) Including debenture and promissory note operations.
Corporate segment operations grew by 0.2% in the quarter and 7.5% in the last 12 months. The highlights of
the quarter were the following lines: (i) rural loans; and (ii) real estate financing. In the last 12 months, the lines
that showed significant growth were: (i) real estate financing; and (ii) foreign transactions.
Expanded Loan Portfolio – Consumer Financing
(1)

The graph below shows the types of credit related to Consumer Financing of Individual customers, which stood
at R$ 94.5 billion in June 2014, up 0.5% for the quarter and up 4.1% over the last 12 months.
The following types of credit posted the strongest numbers for June 2014: (i) personal loans, including payroll-
deductible loans, totaling R$ 45.4 billion; and (ii) Vehicle CDC/leasing, totaling R$ 25.2 billion. Together, these
operations totaled R$ 70.7 billion, accounting for 74.8% of the Consumer Financing balance.

(1) Including vehicle CDC/leasing, personal loans, revolving credit card and cash and installment purchases at merchants operations.
90,770
92,574
94,427
94,021
94,463
29,303
28,232
27,251
26,030
25,248
40,311
42,475
43,262
44,701 45,421
21,156
21,866
23,915
23,290 23,793
Jun13 Sept Dec Mar14 Jun
R$ million
Total with FIDC assignments CDC / Vehicle Leasing Personal Loans Credit Card
Economic and Financial Analysis
40 Report on Economic and Financial Analysis – June 2014
Credit Margin - Interest Earning Operations
Breakdown of Vehicle Portfolio
Variation %
Jun14 Mar14 Jun13 Quarter 12M
CDC Portfolio 33,063 33,596 35,805 (1.6) (7.7)
Individuals 24,805 25,487 28,192 (2.7) (12.0)
Corporate 8,258 8,109 7,613 1.8 8.5
Leasing Portfolio 2,071 2,358 3,517 (12.2) (41.1)
Individuals 443 543 1,111 (18.4) (60.1)
Corporate 1,628 1,815 2,406 (10.3) (32.3)
Finame Portfolio 11,136 11,404 11,029 (2.4) 1.0
Individuals 701 757 857 (7.4) (18.2)
Corporate 10,435 10,647 10,172 (2.0) 2.6
Total 46,270 47,358 50,351 (2.3) (8.1)
Individuals 25,949 26,787 30,160 (3.1) (14.0)
Corporate 20,321 20,571 20,191 (1.2) 0.6
R$ million

Vehicle financing operations (individual and corporate customers) totaled R$ 46.3 billion in June 2014,
presenting a decrease in quarter-over-quarter and year-over-year comparisons. Of the total vehicle portfolio,
71.5% corresponds to CDC, 24.1% to Finame and 4.4% to Leasing. Individuals represented 56.1% of the
portfolio, while corporate customers accounted for the remaining 43.9%.
Expanded Loan Portfolio Concentration – By Sector
The Individual share of the expanded loan portfolio by sector increased both in the quarter and the last 12
months.
R$ million
Jun14 % Mar14 % Jun13 %
Public Sector 7,359 1.7 7,052 1.6 716 0.2
Private Sector 427,872 98.3 425,245 98.4 401,801 99.8
0
Corporate 292,804 67.3 292,593 67.7 278,239 69.1
Industry 89,141 20.5 90,744 21.0 84,664 21.0
Commerce 54,304 12.5 55,117 12.7 53,852 13.4
Financial Intermediaries 9,042 2.1 9,510 2.2 7,642 1.9
Services 136,461 31.4 133,696 30.9 129,067 32.1
Agriculture, Cattle Raising, Fishing,
Forestry and Forest Exploration
3,856 0.9 3,526 0.8 3,014 0.7
Individuals 135,068 31.0 132,652 30.7 123,562 30.7
Total 435,231 100.0 432,297 100.0 402,517 100.0
Activity Sector

Note: On June 2014, we refined the classification process of the economic activity sector of credit operations and, for the purposes of
comparability, we reclassified previous periods.

Economic and Financial Analysis
Bradesco 41
Credit Margin - Interest Earning Operations
Changes in the Expanded Loan Portfolio
Of the R$ 32.7 billion growth in the expanded loan portfolio over the last 12 months, new borrowers accounted
for R$ 31.7 billion, or 97.0%, representing 7.3% of the portfolio in June 2014.

(1) Including new loans, contracted over the last 12 months, by customers with operations as of June 2013.

402,517
(16,845) (13,291)
31,117
403,498
31,733
435,231
Total Loans as at
06.30.2013
Fully Settled
Loans
Write-off against
Provision
New Loans and
Revenue
Appropriation to
Borrowers as at
06.30.2013 (1)
Balance of
Remaining
Borrowers as at
06.30.20123
New Borrowers Total Loan as at
06.30.2014
R$ million
06.30.2013
Economic and Financial Analysis
42 Report on Economic and Financial Analysis – June 2014
Credit Margin - Interest Earning Operations
Changes in the Expanded Loan Portfolio – By Rating
The chart below shows that the vast majority of new borrowers and remaining debtors as of June 2013
(customers that remained in the loan portfolio for at least 12 months) received ratings between AA and C,
demonstrating the adequacy and consistency of the loan assignment and monitoring policy and processes, as
well as the quality of guarantees.
Changes in the Extended Loan Portfolio by Rating between June 2013 and 2014
R$ million % R$ million % R$ million %
AA - C 409,249 94.0 29,922 94.3 379,326 94.0
D 6,407 1.5 295 0.9 6,112 1.5
E - H 19,575 4.5 1,516 4.8 18,060 4.5
Total 435,231 100.0 31,733 100.0 403,498 100.0
Rating
Total Loan as at
June 2014
New Customers from
July 2013 and
June 2014
Remaining Debtors as at
June 2013

Expanded Loan Portfolio – By Customer Profile
The table below presents the changes in the expanded loan portfolio by customer profile:
Jun14 Mar14 Jun13 Quarter 12M
Corporations 187,983 186,865 171,105 0.6 9.9
SMEs 112,180 112,780 108,153 (0.5) 3.7
Individuals 135,068 132,652 123,260 1.8 9.6
Total Loan Operations 435,231 432,297 402,517 0.7 8.1
Customer Profile
Variation %
R$ million

Expanded Loan Portfolio – By Customer Profile and Rating (%)
Loans rated between AA and C improved in the quarter and over the last 12 months.
By Rating
Jun14 Mar14 Jun13
AA-C D E-H AA-C D E-H AA-C D E-H
Corporations 98.4 0.4 1.2 98.0 0.9 1.1 97.2 2.3 0.5
SMEs 90.3 2.9 6.8 90.6 2.9 6.4 90.5 3.4 6.2
Individuals 91.0 1.7 7.3 91.1 1.7 7.2 89.7 2.1 8.2
Total 94.0 1.5 4.5 93.9 1.7 4.4 93.1 2.5 4.4
Customer Profile



Economic and Financial Analysis
Bradesco 43
Credit Margin - Interest Earning Operations
Expanded Loan Portfolio – By Business Segment
The quarterly growth of the expanded loan portfolio by business segment was led by the Prime, and Retail
segments. Prime, Retail and Corporate loans also recorded the highest increase over the last 12 months.
Jun14 % Mar14 % Jun13 % Quarter 12M
Retail 121,878 28.0 120,032 27.8 111,426 27.7 1.5 9.4
Corporate 189,727 43.6 189,040 43.7 175,019 43.5 0.4 8.4
Middle Market 48,199 11.1 48,333 11.2 44,981 11.2 (0.3) 7.2
Prime 20,222 4.6 19,641 4.5 17,082 4.2 3.0 18.4
Other / Non-account Holders
(1)
55,206 12.7 55,251 12.8 54,010 13.5 (0.1) 2.2
Total 435,231 100.0 432,297 100.0 402,517 100.0 0.7 8.1
Variation % R$ million
Business Segments

(1) Comprised mostly of non-account holders using vehicle financing, credit cards and payroll-deductible loans.
Expanded Loan Portfolio – By Currency
The balance of foreign currency-indexed and/or
denominated loan and onlending operations
(excluding ACCs (Advances on Foreign Exchange
Contracts)) totaled US$ 15.5 billion in June 2014
(US$ 16.2 billion in March 2014 and
US$ 14.4 billion in June 2013), down 4.3% in the
quarter and up 7.6% over the last 12 months, in
U.S. Dollars. In Brazilian Reais, these operations
amounted to R$ 34.0 billion in June 2014
(R$ 36.7 billion in March 2014 and
R$ 31.9 billion in June 2013), down 7.4% in the
quarter and up 6.6% over the last 12 months.
In June 2014, total loan operations in Reais stood
at R$ 401.2 billion (R$ 395.6 billion in March 2014
and R$ 370.6 billion in June 2013), up 1.4% in the
quarter and 8.3% in the last 12 months.



92 92 92 92 92 91 91 92
8 8 8 8 8 9 9 8
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
%
Real Foreign Currency
Economic and Financial Analysis
44 Report on Economic and Financial Analysis – June 2014
Credit Margin - Interest Earning Operations
Expanded Loan Portfolio – by Debtor
Except for the largest debtor range, the concentration level among the largest debtors was lower when
compared to the previous quarter. The portfolio quality of the 100 largest borrowers saw a moderate drop in
the quarter, based on AA to A rating evaluation.


Loan Portfolio
(1)
– By Type
The total sum of operations bearing credit risk reached R$ 461.6 billion, up 0.9% in the quarter and 8.5% in
the last 12 months.
Variation %
Jun14 Mar14 Jun13 Quarter 12M
Loans and Discounted Securities 156,010 157,271 149,406 (0.8) 4.4
Financing 117,955 117,900 108,341 - 8.9
Rural and Agribusiness Financing 23,341 21,474 17,580 8.7 32.8
Leasing Operations 4,969 5,271 6,656 (5.7) (25.3)
Advances on Exchange Contracts 6,414 6,459 6,646 (0.7) (3.5)
Other Loans 19,978 19,884 16,945 0.5 17.9
Subtotal Loan Operations
(2)
328,668 328,257 305,574 0.1 7.6
Sureties and Guarantees Granted (Memorandum Accounts) 69,875 67,518 63,383 3.5 10.2
Operations bearing Credit Risk - Commercial Portf olio
(3)
33,356 33,342 30,942 - 7.8
Letters of Credit (Memorandum Accounts) 402 445 966 (9.6) (58.4)
Advances f rom Credit Card Receivables 1,386 1,100 1,084 26.0 27.9
Co-obligation in Loan Assignment FIDC/CRI (Memorandum Accounts) 1,432 1,525 449 (6.1) 218.9
Co-obligation in Rural Loan Assignment (Memorandum Accounts) 111 111 120 - (7.5)
Subtotal of Operations bearing Credit Risk - Expanded Portfolio 435,231 432,297 402,517 0.7 8.1
Other Operations Bearing Credit Risk
(4)
26,344 25,230 23,086 4.4 14.1
Total Operations bearing Credit Risk 461,575 457,527 425,603 0.9 8.5
R$ million

(1) In addition to the Expanded Portfolio, it includes other operations bearing credit risk;
(2) As defined by Bacen;
(3) Including debenture and promissory note operations; and
(4) Including CDI operations, international treasury, swaps, forward currency contracts and investments in FIDC and CRI.
28.3 28.1
28.6 28.8 28.6
22.2
21.8
22.2
22.5
22.2
13.4
13.0
13.5
13.9
13.5
8.5
8.1
8.3
8.9 8.6
1.2 1.2 1.2
1.6 1.7
Jun13 Sept13 Dec13 Mar14 Jun14
%
100 Largest 50 Largest 20 Largest 10 Largest Largest Debtor
Ratings:
AA and A = 94.1%


Ratings:
AA and A = 94.1%


Ratings:
AA and A = 93.6%


Economic and Financial Analysis
Bradesco 45
Credit Margin - Interest Earning Operations
The charts below refer to the Loan Portfolio, as defined by Bacen.
Loan Portfolio
(1)
– By Flow of Maturities
(2)

The loan portfolio by flow of maturities recorded longer maturities for June 2014, compared to the same period
of the previous year, mainly due to the contribution of BNDES onlending, real estate financing and payroll-
deductible loans. It should be noted that, due to their guarantees and characteristics, these operations are not
only exposed to lower risk, but they also provide favorable conditions to gain customer loyalty.


(1) As defined by Bacen; and
(2) Only performing loans.


48.7 48.1 47.4
14.5 15.3
14.7
12.7 12.5
12.5
5.4 5.2
5.7
7.9 7.9
8.0
10.8 11.0 11.7
Jun14 Mar14 Jun13
%
Over 360 days 181 to 360 days 91 to 180 days
61 to 90 days 31 to 60 days 1 to 30 days
62,1
(over
180 days)
37.9
(up to 180
days)
36.8
(up to 180
days)
63.2
(over
180 days)
63.4
(over
180 days)
36.6
(up to 180
days)
Economic and Financial Analysis
46 Report on Economic and Financial Analysis – June 2014
Credit Margin - Interest Earning Operations
Loan Portfolio
(1)
– Delinquency
Year-over-year, the total delinquency ratio, which is based on transactions due over 90 days, decreased from
3.7% to 3.5%, mainly due to: (i) changes in the portfolio mix; (ii) the continuous improvement of loan granting
procedures and systems; and (iii) the improved internal credit risk monitoring models. Quarter-over-quarter,
there was a slight increase, mainly due to the lower growth rate experienced by the credit portfolio, as well as
of some specific occurrences in corporate client operations.



Even with the lower growth rate presented by the loan portfolio, short-term delinquencies, which include
transactions due between 15 and 90 days, have remained stable year-over-year and suffered a slight reduction
quarter-over-quarter.

(1) As defined by Bacen.
5.5
5.2
5.0
4.7
4.8
3.7
3.6
3.5 3.4
3.5
0.2
0.3
0.6
0.4
0.7
4.4 4.4
4.1
4.2
4.4
Jun13 Sept13 Dec13 Mar14 Jun14
Delinquency over 90 days
%
Individuals Total Corporations SMEs
6.7
6.2
6.7
6.2
5.9
5.6
6.1
5.9
2.8
2.5
2.8
2.4
2.2
2.4
2.8
2.5
4.4
4.0
4.3
3.9
3.7 3.7
4.1
3.9
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
Delinquency between 15 and 90 days %
Individuals Corporate Total
Economic and Financial Analysis
Bradesco 47
Credit Margin - Interest Earning Operations
Allowance for Loan Losses (ALL) vs. Delinquency vs. Losses
(1)

The development of the loan portfolio, as well as respective risks, are monitored internally by applying the
expanded portfolio concept.
In addition to the allowance for loan losses, required by Bacen Resolution Nº 2.682/99, there is excess ALL to
support eventual stress scenarios, as well as other operations/commitments bearing credit risks.
Allowance for Loan Losses totaled R$ 21.8 billion in June 2014, representing 6.6% of the total loan portfolio,
and is comprised of: (i) general provision (customer and/or operation rating); (ii) specific provision (non-
performing loans); and (iii) excess provision (internal criteria, including provision for guarantees provided).
Provisioning levels are deemed appropriate and sufficient to support possible changes in scenarios, such as
higher delinquency levels and/or changes in the loan portfolio profile.

(1) As defined by Bacen; and
(2) Includes provision for guarantees provided, encompassing sureties, guarantees, letters of credit and standby letters of credit, which
comprises the concept of excess ALL.


20,915
21,299 21,359 21,455 21,476
21,687
21,407
21,791
10,897
11,182 11,268
10,879 10,790 10,851 10,778
11,097
6,007 6,106 6,080
6,568 6,678
6,800
6,621
6,685
4,011 4,010 4,010 4,008 4,009 4,036 4,008 4,009
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
Total Provision (2) Specific Provision Generic Provision Excess (2)
Economic and Financial Analysis
48 Report on Economic and Financial Analysis – June 2014
Credit Margin - Interest Earning Operations
It is worth mentioning the assertiveness of the provisioning criteria adopted, which is proven by: (i) analyzing
historical data on recorded allowances for loan losses; and (ii) effective losses in the subsequent twelve-month
period. When analyzed in terms of loss, net of recovery, the coverage margin shows a significant increase –
that is, for a provision of 7.0% of the portfolio
(1)
in June 2013, net loss in the subsequent twelve-month period
was 3.1%, meaning that the existing provision exceeded over 125% the loss in the subsequent 12 months.

In June 2013, for a provision of 7.0% of the portfolio
(1)
, gross loss in the subsequent twelve-month period was
4.3%, meaning that the existing provision exceeded the real loss for the subsequent 12 months by over 61%,
as illustrated in the graph below.

(1) As defined by Bacen; and
(2) Includes provision for guarantees provided, encompassing sureties, guarantees, letters of credit and standby letters of credit, which
comprises the concept of excess ALL.

5.9 5.9
5.8
5.7
5.6
5.5
5.3
5.4
7.4
7.3
7.2
7.0
6.9
6.7
6.5
6.6
3.4
3.4
3.3
3.1
4.6 4.6 4.5
4.3
4.1 4.0 4.0
4.1
4.1 4.1
4.0
3.7
3.6
3.5
3.4
3.5
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
ALL x Delinquency x Loss Net of Recovery
Percentage on Balance of Loan Operations
%
Minimum ALL Required (Resolution 2682/99) Total Provision (2)
Net Write-offs to Loss in 12 months E-H Non-Performing Loans
Operations Overdue for over 90 days
5.9 5.9
5.8
5.7
5.6
5.5
5.3
5.4
7.4
7.3
7.2
7.0
6.9
6.7
6.5
6.6
4.6 4.6
4.6
4.3
4.6 4.6
4.5
4.3
4.1
4.0 4.0
4.1
4.1 4.1
4.0
3.7
3.6
3.5
3.4
3.5
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
ALL x Delinquency x Gross Loss
Percentage on Balance of Loan Operations %
Minimum ALL Required (Resolution 2682/99) Total Provision (2)
Gross Write-offs to Loss in 12 months E-H Non-Performing Loans
Operations Overdue for over 90 days
Economic and Financial Analysis
Bradesco 49
Credit Margin - Interest Earning Operations
Allowance for Loan Losses
(1)

The Non-performing Loans ratio (operations overdue for over 60 days) saw slight decrease in June 2014 when
compared to the same period of the previous year, and a slight increase in the quarter. Coverage ratios were
stabilized at comfortable levels.




(1) As defined by Bacen;
(2) Includes provision for guarantees provided, encompassing sureties, guarantees, letters of credit and standby letters of credit, which
comprises the concept of excess ALL; and
(3) Loan operations overdue for over 60 days and that do not generate revenue appropriation on accrual accounting.




5.1
5.0
4.9
4.6
4.4
4.2 4.2
4.4
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
Non-performing Loans (3) / Loan Operations (1) - (%)
144.8
147.3
146.0
153.5
156.8
158.9
153.7
149.9
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
Coverage Ratio
Total Provision (2) / Non-performing Loans (3) - (%)
179.0
178.2
179.4
188.6
190.3
192.3
193.8
186.9
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
Total Provision (2) / Operations Overdue for over 90 Days - (%)
Coverage Ratio
Economic and Financial Analysis
50 Report on Economic and Financial Analysis – June 2014
Credit Margin - Interest Earning Operations
Loan Portfolio – Portfolio Indicators
With a view to facilitating the monitoring of the quantitative and qualitative performance of Bradesco’s loan
portfolio, a comparative summary of the main figures and indicators is presented below:
R$ million (except %)
Jun14 Mar14 Jun13
Total Loan Operations
(1)
328,668 328,257 305,574
- Individuals 133,959 131,553 122,571
- Corporate 194,709 196,704 183,002
Total Provision
(2)
21,791 21,407 21,455
- Specif ic 11,097 10,778 10,879
- Generic 6,685 6,621 6,568
- Excess
(2)
4,009 4,008 4,008
Specif ic Provision / Total Provision
(2) (%)
50.9 50.3 50.7
Total Provision
(2)
/ Loan Operations
(%)
6.6 6.5 7.0
AA - C Rated Loan Operations / Loan Operations
(%)
92.2 92.2 91.3
D Rated Operations under Risk Management / Loan Operations
(%)
1.9 2.1 3.0
E - H Rated Loan Operations / Loan Operations
(%)
5.9 5.7 5.8
D Rated Loan Operations 6,224 7,013 9,070
Provision f or D-rated Operations 1,717 1,910 2,356
D Rated Provision / Loan Operations
(%)
27.6 27.2 26.0
D - H Rated Non-Perf orming Loans 16,551 16,293 16,015
Total Provision
(2)
/ D-to-H-rated Non-perf orming Loans
(%)
131.7 131.4 134.0
E - H Rated Loan Operations 19,388 18,714 17,577
Provision f or E-to-H-rated Loan Operations 16,190 15,560 15,380
E - H Rated Provision / Loan Operations
(%)
83.5 83.1 87.5
E - H Rated Non-Perf orming Loans 13,560 12,987 13,029
Total Provision
(2)
/ E-to-H-rated Non-perf orming Loans
(%)
160.7 164.8 164.7
Non-perf orming Loans
(3)
14,538 13,928 13,980
Non-perf orming Loans
(3)
/ Loan Operations
(%)
4.4 4.2 4.6
Coverage Ratio - Total Provision
(2)
/ Non Perf orming Loans
(3)

(%)
149.9 153.7 153.5
Loan Operations Overdue f or over 90 days 11,658 11,048 11,374
Loan Operations Overdue f or over 90 days / Loan Operations
(%)
3.5 3.4 3.7
Coverage Ratio - Total Provision
(2)
/ Operations Overdue f or over 90 days
(%)
186.9 193.8 188.6

(1) As defined by Bacen;
(2) Includes provision for guarantees provided, encompassing sureties, guarantees, letters of credit and standby letters of credit, which
comprises the concept of excess ALL; and
(3) Loan operations overdue for over 60 days and that do not generate revenue appropriation on accrual accounting.



Economic and Financial Analysis
Bradesco 51
Funding Margin - Interest Earning Operations
Funding Margin Breakdown – Interest Earning Operations
Half Quarter
Interest - due to volume 332 (40)
Interest - due to spread 591 195
Interest Earning Portion 2,984 2,061 1,570 1,415 923 155
1H14 1H13
R$ million
Funding Margin - Interest Earning Operations
Variation
1Q14 2Q14
Quarter-over-quarter, the Funding margin
increased 11.0%, or R$ 155 million, in the second
quarter of 2014. The variation occurred mainly due
to a R$ 195 million increase in the average spread,
due to the increase Selic rate; and offset by: (ii) a
R$ 40 million decrease in the volume of operations.
In the comparison between the first half of 2014
and the same period of the previous year, the
Funding margin was up 44.8% or R$ 923 million.
The variation occurred mainly due to: (i) the R$ 591
million increase in average spread as a result of an
improved cost structure, with greater focus on
funding obtained from Retail customers,
associated with the increased Selic rate; and (ii) the
greater volume of operations, amounting to R$ 332
million.




Economic and Financial Analysis
52 Report on Economic and Financial Analysis – June 2014
Funding Margin - Interest Earning Operations
Loans vs. Funding
To analyze Loan Operations in relation to Funding,
the following should be deducted from total
customer funding: (i) the amount committed to
reserve requirements at Bacen, (ii) the amount of
available funds held at customer service network,
as well as (iii) funds from domestic and foreign lines
of credit that finance the demand for loans.
Bradesco depends little on interbank deposits and
foreign lines of credit, given its capacity to
effectively obtain funding from customers. This is
a result of: (i)the outstanding location of its Service
Points; (ii) the broad diversity of products offered;
and (iii) the market’s confidence in the Bradesco
brand.
Note that the use of funds provides a comfortable
margin, which proves that Bradesco is capable of
meeting demand for loaning funds through its own
funding.


(1) Debentures mainly used to back repos; and
(2) Including: Collateral Mortgage Notes, Mortgage Bonds, Letters of Credit for Agribusiness, Financial Bills and Structured Operations
Certificates.


Jun14 Mar14 Jun13 Quarter 12M
Demand Deposits + Sundry Floating 39,913 42,411 39,965 (5.9) (0.1)
Savings Deposits 84,319 82,098 72,627 2.7 16.1
Time Deposits + Debentures
(1)
158,532 161,210 158,650 (1.7) (0.1)
Funds f rom Financial Bills
(2)
61,809 54,115 41,700 14.2 48.2
Customer Funds 344,573 339,834 312,942 1.4 10.1
(-) Reserve Requirements (53,502) (58,919) (50,246) (9.2) 6.5
(-) Available Funds (7,651) (7,250) (11,618) 5.5 (34.1)
Customer Funds Net of Reserve Requirements 283,420 273,665 251,078 3.6 12.9
Onlending 40,414 41,057 38,033 (1.6) 6.3
Securities Abroad 8,068 10,395 12,121 (22.4) (33.4)
Borrowing 13,727 15,667 11,088 (12.4) 23.8
Other (Subordinated Debt + Other Borrowers - Cards) 49,674 51,046 50,403 (2.7) (1.4)
Total Funding (A) 395,303 391,830 362,723 0.9 9.0
Expanded Loan Portfolio (Excluding Sureties and
Guarantees) (B)
365,356 364,779 339,134 0.2 7.7
B/A (%) 92.4 93.1 93.5 (0.7) p.p. (1.1) p.p.
Variation %
Funding vs. Investments
R$ million
Economic and Financial Analysis

Bradesco 53

Funding Margin - Interest Earning Operations
Main Funding Sources
The following table presents changes in main funding sources:
Jun14 Mar14 Jun13 Quarter 12M
Demand Deposits 36,176 38,569 36,586 (6.2) (1.1)
Savings Deposits 84,319 82,098 72,627 2.7 16.1
Time Deposits 92,254 97,387 98,573 (5.3) (6.4)
Debentures
(1)
66,278 63,823 60,077 3.8 10.3
Borrowing and Onlending 54,142 56,724 49,121 (4.6) 10.2
Funds from Issuance of Securities
(2)
69,877 64,511 53,821 8.3 29.8
Subordinated Debts 35,384 35,840 36,222 (1.3) (2.3)
Total 438,430 438,952 407,027 (0.1) 7.7
Variation % R$ million

(1) Considering mostly debentures used to back repos; and
(2) Including: Financial Bills, on June 30, 2014, amounting to R$ 48,111 million (R$ 41,688 million on March 31, 2014; and R$ 31,878
million on June 30, 2013).
Demand Deposits
The R$ 2,393 million reduction in the second
quarter of 2014 compared to the previous quarter,
and the R$ 410 million reduction compared to the
same period in the previous year were due mostly
to new business opportunities offered to customers
made possible by the interest rate fluctuations in
the period.


(1) Additional installment not included.
Savings Deposits
Savings deposits increased 2.7% in the quarter-
over-quarter comparison and 16.1% compared to
the same period in the previous year, mainly as a
result of: (i) greater funding volume; (ii) the yield of
savings account reserve; and (iii) increase in
voluntary deposits by clients.
Bradesco has been increasing its savings accounts
base at a constant level, posting a net growth of 4.1
million new savings accounts over the last 12
months.

(1) Additional installment not included.
33,627
38,412
35,714
36,586
39,456
40,618
38,569
36,176
8,870
7,891
6,789
7,468 7,310
7,557
6,950
5,055
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
Demand Deposits Reserve Requirements on Demand Deposits (1)
65,540
69,042
70,163
72,627
76,488
80,718
82,098
84,319
13,033
13,742
13,977
14,388
15,264
16,098
16,339
16,742
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
Savings Deposits Reserve Requirements on Savings Deposits (1)
Economic and Financial Analysis
54 Report on Economic and Financial Analysis – June 2014
Funding Margin - Interest Earning Operations
Time Deposits
In the second quarter of 2014, time deposits totaled
R$ 92,254 million, presenting a reduction of 5.3%
quarter-over-quarter, and 6.4% on the same period
of the previous year.
This performance was due mostly to new
investment alternatives available to customers.

(1) As defined by Bacen.
Debentures
On June 30, 2014, Bradesco’s debentures balance
reached R$ 66,278 million, a 3.8% increase in the
quarter-over-quarter comparison, and a 10.3%
increase over the last 12 months.
These variations are mainly due to the placement
and maturity of the securities, which are also used
to back repos that are, in turn, impacted by the
levels of economic activity.

Borrowing and Onlending
The R$ 2.582 million decrease in the quarter-over-
quarter comparison was mainly driven by: (i) a
R$ 1.905 million decrease borrowing and
onlending denominated and/or indexed in foreign
currency, basically reflecting (a) settlement of
operations; and (b) negative exchange variation of
2.7% in the period; and (ii) a R$ 677 million
decrease in the volume of funds raised through
borrowing and onlending in Brazil, led by Finame
and BNDES operations.
In the comparison between the first half of 2014
and the same period of the previous year, the
borrowing and onlending balance rose by
R$ 5,021 million, which was mostly due to: (i) the
R$ 2,707 million increase in foreign-currency-
denominated and/or indexed borrowing and
onlending, from R$ 11,214 million in June 2013 to
R$ 13,921 million in June 2014, mainly driven by:
(i) the increase in the volume of funds raised; and
(ii) the R$ 2,314 million increase in volume of funds
raised through borrowing and onlending in Brazil,
led by Finame operations.

113,379
104,022
99,505 98,573
99,993
95,763
97,387
92,254
39.9
35.8
33.4
32.3 32.1
29.6 29.7
28.1
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
Time Deposits % on Loan Operations (1)
55,323
59,810
58,203
60,077
57,363
64,390 63,823
66,278
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
10,267
8,169 8,214
11,214 12,142
15,400 15,826
13,921
35,132
36,017
37,995
37,907
39,165
40,695 40,898
40,221
45,399
44,186
46,209
49,121
51,307
56,095
56,724
54,142
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
Abroad In Brazil
Economic and Financial Analysis

Bradesco 55

Funding Margin - Interest Earning Operations
Funds from the Issuance of Securities
Funds from Issuance of Securities totaled
R$ 69,877 million, up 8.3% or R$ 5,366 million in
the quarter, mainly due to: (i) increased inventory
of Financial Bills, whose balance increased
R$ 6,423 million; and (ii) higher volume of
Mortgage Bonds, totaling R$ 2,042 million; and
partially offset by: (iii) the R$ 2,328 million
reduction in the volume of securities issued abroad,
basically reflecting: (a) the maturity of such
securities; and (b) the negative exchange rate
variation of 2.7% in the period.
In the comparison between the first half of 2014
and the same period of the previous year,
the R$ 16,056 million increase was mainly driven
by: (i) increased inventory of Financial Bills, from
R$ 31,878 million in June 2013 to R$ 48,111
million in June 2014, mainly due to new issuances
in the period; (ii) higher volume of Mortgage Bonds,
in the amount of R$ 4,277 million; and partially
offset by: (iii) R$ 4,053 million reduction in the
volume of securities issued abroad.

(1) Considering: Mortgage Notes, Mortgage Bonds, Letters of Credit for Agribusiness,
Debentures, MTN Program Issues, Cost of issuances over funding and Structured
Operations Certificates.


Subordinated Debt
Subordinated Debt totaled R$ 35,384 million in
June 2014 (R$ 7,726 million abroad and
R$ 27,658 million in Brazil), down 1.3% quarter-
over-quarter and 2.3% year-over-year, essentially
due to the maturity of debts.


31,234
28,221
25,417
31,878
34,242 35,208
41,688
48,111
3,587
3,427
3,192
3,309
3,126
3,062
2,688
2,422
18,989
19,711
19,224
18,633
18,059
19,384
20,135
19,344
53,810
51,359
47,833
53,821
55,427
57,654
64,511
69,877
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
Financial Bills Securitization of Payment Order Flow Other (1)
25,792 26,045 26,460 26,674 26,574 26,933 27,294 27,658
8,715
8,807
8,597
9,548 9,561 8,952 8,546 7,726
34,507
34,852 35,057
36,222 36,135 35,885 35,840
35,384
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
In Brazil Abroad
Economic and Financial Analysis
56 Report on Economic and Financial Analysis – June 2014
Securities/Other Margin – Interest Earning Operations
Securities/Other Margin Breakdown – Interest Earning Operations
Half Quarter
Interest - due to volume 190 (79)
Interest - due to spread (233) 454
Interest Earning Portion 2,098 2,141 1,236 861 (43) 375
Income 16,488 14,444 8,820 7,668 2,044 1,152
Expenses (14,390) (12,303) (7,584) (6,807) (2,087) (777)
1H14
Securities/Other Margin - Interest Earning Operations
R$ million
1H13 1Q14
Variation
2Q14

Securities/Other Margin – Interest Earning Operations rose R$ 375 million between the second quarter of 2014
and the previous quarter. The variation was mainly due to: (i) a R$ 454 million increase in the average spread,
reflecting the behavior of the pricing of fixed income securities portfolio in the quarter; and partially offset by:
(ii) a R$ 79 million decrease in the volume of operations.
In the comparison between the first half of 2014 and the same period of the previous year, the Securities/Other
Margin - Interest Earning Operations was down R$ 43 million. This result was primarily due to: (i) a reduced
average spread, totaling R$ 233 million, as well as the pricing of fixed income securities portfolio; and partially
offset by: (ii) a greater volume of operations, which impacted the result in R$ 190 million.
Insurance Margin - Interest Earning Operations
Insurance Margin Breakdown – Interest Earning Operations
Half Quarter
Interest - due to volume 156 35
Interest - due to spread 61 82
Interest Earning Portion 2,045 1,828 1,081 964 217 117
Income 7,055 3,827 3,607 3,448 3,228 159
Expenses (5,010) (1,999) (2,526) (2,484) (3,011) (42)
1H14
R$ million
Insurance Margin - Interest Earning Operations
1H13 1Q14
Variation
2Q14

In the quarter-over-quarter comparison, interest financial margin from insurance operations increased
R$ 117 million, or 12.1%, impacted by: (i) the R$ 82 million increase in average spread, basically reflecting the
IPCA and IGP-M indexes’ behavior in the quarter; and (ii) the greater volume of operations, which amounted
to R$ 35 million.
In the year-over-year comparison, Insurance Margin - Interest Earning Operations increased 11.9%, or
R$ 217 million, mostly due to: (i) a greater volume of operations, which amounted to R$ 156 million; and (ii) a
R$ 61 million increase in the average spread.
Economic and Financial Analysis

Bradesco 57

NII - Non-Interest Earning Portion
NII - Non-Interest Earning Portion – Breakdown
Half Quarter
Funding (154) (146) (77) (77) (8) -
Insurance (32) 62 49 (80) (94) 129
Securities/Other 409 299 240 168 110 72
Total 223 215 212 11 8 201
1H14
NII - Non-Interest Earning Portion
R$ million
1H13 1Q14
Variation
2Q14

The non-interest earning portion of the net interest income in the second quarter of 2014 was R$ 212 million,
versus R$ 11 million in the previous quarter, which amounted to a R$ 201 million increase primarily due to an
increase in the Insurance and Securities/Other margin. In the comparison between the first half of 2014 and
the same period of the previous year, the non-interest earning portion of the net interest income was up
R$ 8 million. The variations in non-interest earning portion of the net interest income were mostly a result of
the following:
? Insurance – represented by gains/losses from variable-income securities; the variations in the periods are
associated with market conditions, which enable greater/lower gain opportunity; and

? "Securities/Other" - the increase of R$ 72 million and R$ 110 million quarter-over-quarter and year-over-
year, respectively, were due to increased market volatility in the period.

Economic and Financial Analysis
58 Report on Economic and Financial Analysis – June 2014
Insurance, Pension Plans and Capitalization Bonds
Below is the analysis of the Statement of Financial Position and Income Statement of Grupo Bradesco Seguros
e Previdência:
Consolidated Statement of Financial Position
Jun14 Mar14 Jun13
Assets
Current and Long-Term Assets 165,203 158,370 152,459
Securities 154,261 147,725 141,984
Insurance Premiums Receivable 2,969 2,779 2,546
Other Loans 7,973 7,866 7,929
Permanent Assets 4,434 4,342 3,936
Total 169,637 162,712 156,395
Reserve Requirements
Current and Long-Term Liabilities 150,230 144,495 139,412
Tax, Civil and Labor Contingencies 2,354 2,317 2,792
Payables on Insurance, Pension Plan and Capitalization Bond Operations 446 412 355
Other Reserve Requirements 4,699 4,015 4,446
Insurance Technical Reserves 12,272 11,728 11,698
Lif e and Pension Plan Technical Reserves 124,192 119,942 114,383
Capitalization Bond Technical Reserves 6,267 6,081 5,738
Non-controlling Interest 594 615 641
Shareholders' Equity 18,813 17,602 16,342
Total 169,637 162,712 156,395
R$ million

Consolidated Income Statement
R$ million
1H14 1H13 2Q14 1Q14
Insurance Written Premiums, Pension Plan Contributions and Capitalization Bond Income 25,442 24,191 13,992 11,450
Premiums Earned f rom Insurance, Pension Plan Contribution and Capitalization Bond 14,469 12,605 7,378 7,091
Financial Result f rom the Operation
2,108 1,828 1,098 1,010
Sundry Operating Income 383 410 188 195
Retained Claims (8,275) (7,271) (4,193) (4,082)
Capitalization Bond Draws and Redemptions (2,260) (1,883) (1,173) (1,087)
Selling Expenses (1,417) (1,266) (737) (680)
General and Administrative Expenses (1,091) (1,023) (553) (538)
Tax Expenses (318) (280) (158) (160)
Other Operating Income/Expenses (409) (223) (236) (173)
Operating Result 3,190 2,897 1,614 1,576
Equity Result 324 218 160 164
Non-Operating Result (21) (20) (9) (12)
Income before Taxes and Profit Sharing 3,493 3,095 1,765 1,728
Income Tax and Contributions (1,273) (1,141) (641) (632)
Prof it Sharing (45) (33) (21) (24)
Non-controlling Interest (63) (60) (31) (32)
Net Income 2,112 1,861 1,072 1,040

Note: For comparison purposes, the effects non-recurring events have not been considered.
Economic and Financial Analysis

Bradesco 59

Insurance, Pension Plans and Capitalization Bonds
Income Distribution of Grupo Bradesco Seguros e Previdência
R$ million
2Q14 1Q14 4Q13 3Q13 2Q13 1Q13 4Q12 3Q12
Life and Pension Plans 698 639 582 552 564 542 570 493
Health 184 192 175 139 155 167 167 133
Capitalization Bonds 119 110 101 105 97 131 103 86
Basic Lines and Other 71 99 143 82 115 90 124 125
Total 1,072 1,040 1,001 878 931 930 964 837

Performance Ratios
2Q14 1Q14 4Q13 3Q13 2Q13 1Q13 4Q12 3Q12
Claims Ratio
(1)
70.2 70.1 71.1 72.7 71.1 69.6 70.5 70.4
Expense Ratio
(2)
11.2 10.4 10.9 10.4 10.9 11.0 11.6 11.3
Administrative Expenses Ratio
(3)
4.0 4.7 4.3 4.9 4.1 4.3 4.2 5.0
Combined Ratio
(4) (5)
86.3 86.4 86.1 86.9 85.5 86.0 86.6 86.5
%

(1) Retained Claims/Earned Premiums;
(2) Sales Expenses/Earned Premiums;
(3) Administrative Expenses/Net Written Premiums;
(4) (Retained Claims + Sales Expenses + Other Operating Income and Expenses)/Earned Premiums + (Administrative Expenses +
Taxes)/Net Written Premiums; and
(5) Excluding additional reserves.
Note: For comparison purposes, the effects non-recurring events have not been considered.
Written Premiums, Pension Plan Contributions and Capitalization Bond Income

Income increased by 22.2% in the second quarter of 2014, compared to the previous quarter, driven by the
Life and Pension Plans, Auto/RE and Capitalization Bonds products, which grew 46.2%, 10.9% and 7.1%,
respectively.
Production increased 5.2% in the first half of 2014 when compared to the same period in the previous year.
This result was led by Auto RE, Health and Capitalization Bond products, which grew 31.5%, 21.1% and
18.3%, respectively.

10,104
13,216
10,953
13,238
11,069
14,492
11,450
13,992
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Economic and Financial Analysis
60 Report on Economic and Financial Analysis – June 2014
Insurance, Pension Plans and Capitalization Bonds
Written Premiums, Pension Plan Contributions and Capitalization Bond Income





5,002
8,053
5,698
7,535
4,971
8,505
4,994
7,301
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Life/AP/VGBL/PGBL/Basic Lines
2,738
2,974
3,040
3,187
3,423
3,458
3,748
3,794
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Health
1,013
1,089
983
1,126
1,234
1,296
1,205
1,290
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Capitalization Bonds
1,239
1,014
1,039
1,204
1,276
1,108
1,399
1,551
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Auto/Basic Lines
112
86
193
186
165
125
104
56
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Other Lines
Economic and Financial Analysis

Bradesco 61

Insurance, Pension Plans and Capitalization Bonds
Retained Claims by Insurance Line





70.4 70.5
69.6
71.1
72.7
71.1
70.1 70.2
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Total
34.6
37.4
35.1
37.3
43.3
37.3
29.9
31.5
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Life/AP
83.0 82.6
81.4
83.4
86.2 85.9
82.2 82.0
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Health
73.4
72.0
66.0
65.2
66.7
71.2
68.5
73.5
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Auto/RCF
31.3
36.0
34.6
37.9
40.8
27.3
30.8
32.7
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Basic Lines
88.6
87.2
90.8 90.5
88.6
85.2
88.1 87.5
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Other Lines
Economic and Financial Analysis
62 Report on Economic and Financial Analysis – June 2014
Insurance, Pension Plans and Capitalization Bonds
Insurance Sales Ratio by Segment



11.3
11.6
11.0 10.9
10.4
10.9
10.4
11.2
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Total
21.2
23.3 23.4
18.8
21.8
21.2
21.8
20.7
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Life/AP
5.3
5.4
5.6
5.7 5.7
5.6
4.7
5.0
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Health
17.9
17.2
16.2
15.8
16.3
16.5
18.0
19.0
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Auto/RCF
21.5
20.2
23.1
26.4 26.2
29.1 28.9
29.4
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Basic Lines
Economic and Financial Analysis

Bradesco 63

Insurance, Pension Plans and Capitalization Bonds
Efficiency Ratio

General and Administrative Expenses/Revenue
The 0.7 p.p. improvement in efficiency ratio for the second quarter of 2014, when compared to the first quarter
of 2014, was mostly due to: (i) the benefits generated by cost-cutting measures; and (ii) a 22.2% growth in
revenue for the period.




5.0
4.2
4.3
4.1
4.9
4.3
4.7
4.0
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Economic and Financial Analysis
64 Report on Economic and Financial Analysis – June 2014
Insurance, Pension Plans and Capitalization Bonds
Technical Reserves











117,807
124,217
127,367
131,819
133,554
136,229
137,751
142,731
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
Total Reserves
5,529
5,650
6,381
6,650
6,740
5,878
6,079
6,301
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
Health
102,425
108,371
110,527
114,383
115,814
119,228 119,942
124,192
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
Pension Plans and Life / VGBL
4,508
4,577
4,643
4,817
5,003 4,998
5,314
5,689
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
Auto/Basic Lines
5,165
5,449
5,623
5,738 5,762
5,900
6,081
6,267
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
Capitalization Bonds
Economic and Financial Analysis

Bradesco 65

Bradesco Vida e Previdência
2Q14 1Q14 4Q13 3Q13 2Q13 1Q13 4Q12 3Q12
Net Income 698 639 582 552 564 542 570 493
Premium and Contribution Income
(1)
7,301 4,994 8,505 4,971 7,535 5,698 8,053 5,002
- Income f rom Pension Plans and VGBL 6,117 3,898 7,317 3,838 6,475 4,677 6,976 3,988
- Income f rom Lif e/Personal Accidents Insurance Premiums 1,184 1,096 1,188 1,133 1,060 1,021 1,077 1,014
Technical Reserves 124,192 119,942 119,228 115,814 114,383 110,527 108,371 102,425
Investment Portf olio 129,193 126,001 124,655 121,211 119,842 118,380 117,418 110,182
Claims Ratio 31.5 29.9 37.3 43.3 37.3 35.1 37.4 34.6
Expense Ratio 20.7 21.8 21.2 21.8 18.8 23.4 23.3 21.2
Combined Ratio 57.8 58.6 67.3 72.6 61.0 70.0 68.1 60.8
Participants / Policyholders (in thousands) 27,789 27,451 28,256 28,044 27,030 25,722 25,837 25,295
Premium and Contribution Income Market Share (%)
(2)
27.5 26.1 30.2 29.1 28.8 24.6 29.6 28.8
Lif e/AP Market Share - Insurance Premiums (%)
(2)
17.0 17.6 17.0 16.9 16.3 16.4 18.0 17.8
R$ million (unless otherwise stated)

(1) Life/VGBL/PGBL/Traditional; and
(2) The second quarter of 2014 includes the latest data released by Susep (May/14).
Note: For comparison purposes, the effects non-recurring events have not been considered.

Based on the solid structure, innovative product
policy and market trust earned, Bradesco Vida e
Previdência accounted for 27.5% of the pension
plan and VGBL income.
Net income for the second quarter of 2014 was up
9.2% compared to the previous quarter, mainly due
to: (i) a 46.2% increase in revenue; (ii) improved
administrative efficiency ratio; (iii) improved
financial result; and partially offset by: (iv) the 1.6
p.p. increase in Life claims ratio.
Net income for the first half of 2014 was up 20.9%
compared to the same period of the previous year,
mainly due to: (i) the 5.6 p.p. decrease in the claims
ratio; (ii) improved financial and equity result; and
(iii) reduced general and administrative expenses.




Economic and Financial Analysis
66 Report on Economic and Financial Analysis – June 2014
Bradesco Vida e Previdência
Technical reserves for Bradesco Vida e
Previdência stood at R$ 124.2 billion in June 2014.
These reserves were comprised of R$ 117.9 billion
from Pension Plans and VGBL and R$ 6.3 billion
from Life, Personal Accidents and Other Lines. The
total amounts to an increase of 8.6% over the same
period of the previous year.
The Pension Plan and VGBL Investment Portfolio
accounted for 31.7% of market funds in April 2014
(source: Fenaprevi).

Growth of Participants and Life and Personal Accident Policyholders



In June 2014, the number of Bradesco Vida e
Previdência customers rose 2.8% when compared
to June 2013, surpassing a total of 2.4 million
pension plan and VGBL plan participants and 25.3
million life and personal accident participants. This
impressive growth was fueled by the strength of the
Bradesco brand and the improvement of selling
and management policies.



1,548 1,571 1,573 1,586 1,598 1,607 1,608 1,617
733
755 758 770 768
814 782 792
2,281
2,326 2,331 2,356 2,366
2,421
2,390 2,409
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
Number of Participants
In thousands
Pension Plans VGBL
18,322 18,708 18,588
19,845
20,701 20,775
19,931 20,201
4,692
4,803 4,803
4,829
4,977 5,060
5,130
5,179
23,014
23,511 23,391
24,674
25,678 25,835
25,061
25,380
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
Number of Life and Personal Accidents Policyholders
In thousands
Life Specific Policy Mass Life
Economic and Financial Analysis
Bradesco 67
Bradesco Saúde and Mediservice
2Q14 1Q14 4Q13 3Q13 2Q13 1Q13 4Q12 3Q12
Net Income 184 192 175 139 155 167 167 133
Net Written Premiums 3,509 3,372 3,274 3,154 2,926 2,787 2,727 2,498
Technical Reserves 6,149 5,794 5,726 6,585 6,503 6,308 5,582 5,466
Claims Ratio 86.1 86.9 88.5 89.8 87.3 84.7 85.3 86.9
Expense Ratio 4.6 4.1 5.4 5.4 5.4 5.2 5.1 5.0
Combined Ratio 97.7 96.9 99.5 99.6 98.9 96.2 98.5 99.9
Policyholders (in thousands) 4,360 4,273 4,173 4,117 4,082 3,985 3,964 3,873
Written Premiums Market Share (%)
(1)
45.7 45.4 46.0 45.6 48.8 48.2 45.3 46.8
R$ million (unless otherwise stated)

(1) The second quarter of 2014 includes the latest data released by ANS (May/14).
Note: For comparison purposes, the effects non-recurring events have not been considered.

Net income for the second quarter of 2014 was
down 4.2% compared to the previous quarter,
mainly due to: (i) the increase in the combined
ratio, partly impacted by: (a) sales figures; and (b)
higher operating expenses; and partially offset by:
(ii) a 4.1% increase in revenue; and (iii) a 0.8 p.p.
drop in the claims ratio.
Net income for the first half of 2014 was up 16.8%
compared to the same period in the previous year,
mainly due to: (i) a 20.4% increase in revenue; (ii)
a 0.9 p.p. drop in sales; (iii) improved financial and
equity result; (iv) improvement in the administrative
efficiency ratio; partially offset by (v) a 0.3 p.p.
increase in the claims ratio.
In June 2014, Bradesco Saúde and Mediservice
maintained a strong market position in the
corporate segment (source: ANS).
Over 92,000 companies in Brazil have Bradesco
Saúde insurance and Mediservice plans.
Of the 100 top-grossing companies in Brazil, 63 are
Bradesco Saúde and Mediservice customers
(source: Exame magazine’s Melhores e Maiores
ranking, June 2014).

Economic and Financial Analysis
68 Report on Economic and Financial Analysis – June 2014
Bradesco Saúde and Mediservice
Number of Bradesco Saúde and Mediservice Policyholders
Both companies have a combined total of over 4.3
million customers. The high share of corporate
policies in the overall portfolio (95.8% in June
2014) shows the companies’ high level of
specialization and customization in the corporate
segment.
We highlight the Small and Mid-Sized Group
Insurance (SPG) portfolio, which covered
approximately over 829,000 lives in June 2014, up
22.2% when compared to the same period in 2013.




Bradesco Capitalização
2Q14 1Q14 4Q13 3Q13 2Q13 1Q13 4Q12 3Q12
Net Income 119 110 101 105 97 131 103 86
Capitalization Bond Income 1,290 1,205 1,296 1,234 1,126 983 1,089 1,013
Technical Reserves 6,267 6,081 5,900 5,762 5,738 5,623 5,449 5,165
Customers (in thousands) 3,456 3,485 3,475 3,428 3,439 3,462 3,459 3,426
Premium Income Market Share (%)
(1)
23.6 24.3 22.1 21.8 20.9 22.1 23.1 22.8
R$ million (unless otherwise stated)
(1) The second quarter of 2014 includes the latest data released by Susep (May/14).

Net income for the second quarter of 2014 rose
8.2% when compared to the previous quarter,
mainly due to: (i) 7.1% increase in income; (ii)
improved financial result; and (iii) reduction in the
administrative efficiency ratio.
Net income for the first half of 2014 was up 0.4%
when compared to the same period in the previous
year, due to: (i) a 18.3% increase in income; (ii)
improved administrative efficiency ratio; and (iii)
improved financial result.




3,674
3,768 3,792
3,891 3,928 3,986
4,088
4,177
199
196 193
191 189
187
185
183
3,873
3,964 3,985
4,082 4,117
4,173
4,273
4,360
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
In thousands
Corporate Health Individual Health
Economic and Financial Analysis
Bradesco 69
Bradesco Capitalização
Bradesco Capitalização ended the first half of 2014
in the top portion of the ranking of capitalization
bond companies, due to its policy of transparency
and of adjusting its products based on potential
consumer demand.
In order to offer the capitalization bond that best fits
the profile and budget of each customer, Bradesco
Capitalização has developed several products that
vary in accordance with payment method (lump
sum or monthly), contribution term, frequency and
amount of premium payments. This phase was
highlighted by a closer relationship with the public
through the consolidation of Pé Quente Bradesco
products.
Among these products, it is worth pointing out the
performance of the social and environmental
products, from which a part of the profit is allocated
to socially responsible projects, while also allowing
the customer to create a financial reserve.
Bradesco Capitalização currently has partnerships
with the following social and environmental
institutions: (i) SOS Mata Atlântica Foundation
(contributes to the conservation of biological and
cultural diversity of the Atlantic Forest, stimulating
social and environmental citizenship); (ii)
Amazonas Sustentável Foundation (contributes to
the sustainable development, environmental
preservation and improvement to the quality of life
of communities that benefit from the preservation
centers in the state of Amazonas); (iii) the Brazilian
Cancer Control Institute (contributes to the
development of projects for the prevention, early
diagnosis and treatment of breast cancer in Brazil);
and (iv) Tamar Project (created to save sea turtles).
The portfolio is composed of 22.7 million active
bonds, of which: 35.9% are Traditional Bonds sold
in the branch network and at Bradesco Dia&Noite
service channels, and 64.1% are incentive bonds
(assignment of drawing rights), such as
partnerships with Bradesco Vida e Previdência and
Bradesco Auto/RE, which were up 1.4% over June
2013. Given that the purpose of this type of
capitalization bond is to add value to the product of
an associated company or even to encourage
timely payment by its customers, bonds have
reduced maturity and grace terms and lower sale
price.



13,093
13,732 13,753
14,346
15,688 15,239 15,014 14,553
8,144
8,181 8,177
8,160
8,102
8,168 8,192
8,157
21,237
21,913 21,930
22,506
23,790
23,407 23,206
22,710
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
In thousands
Active Drawing Right Assignment Active Capitalization Bonds
Economic and Financial Analysis
70 Report on Economic and Financial Analysis – June 2014
Bradesco Auto/RE and Atlântica Companhia de Seguros
2Q14 1Q14 4Q13 3Q13 2Q13 1Q13 4Q12 3Q12
Net Income 38 86 71 25 43 28 10 42
Net Written Premiums 1,551 1,399 1,108 1,276 1,204 1,039 1,014 1,239
Technical Reserves 5,689 5,314 4,998 5,003 4,817 4,643 4,577 4,508
Claims Ratio 62.5 58.0 59.1 59.5 58.6 58.5 63.7 63.9
Expense Ratio 21.8 20.9 19.6 18.9 18.0 17.7 17.8 18.7
Combined Ratio 107.6 103.6 104.5 101.6 100.8 105.6 109.6 105.8
Policyholders (in thousands) 3,690 3,882 3,613 3,631 3,652 3,798 3,871 3,968
Premium Income Market Share (%)
(1)
10.4 10.3 8.8 9.1 9.1 8.8 10.0 10.5
R$ million (unless otherwise stated)

(1) The second quarter of 2014 includes the latest data released by Susep (May/14).
Note: We are considering Atlântica Companhia de Seguros as of the first quarter of 2014.

Income increased 10.9% in the second quarter of
2014, compared to the previous quarter. Net
income for the quarter was down 55.8% compared
to the previous quarter, due to: (i) 4.5 p.p. increase
in claims ratios; and (ii) improved financial and
equity result.
Income was up 31.5% in the first half of 2014,
compared to the same period in the previous year.
Net income was up 74.6%, mainly due to: (i)
improved financial and equity result; (ii) improved
administrative efficiency ratio; and partially offset
by: (iii) 1.9 p.p. increase in claims ratios; and (iv)
3.5 p.p. increase in the expense ratio.
In the Property Insurance segment, the focus on
large brokers and Corporate and Middle Market
customers was maintained. This results in renewal
of the main accounts, whether as the leading
company or through participation in co-insurance.
In Aviation and Maritime Hull insurance, the
increased exchange with Corporate and Middle
Market segments has been drawn on extensively,
taking full advantage of the stronger sales of new
aircraft and those of the maritime segment.
The transportation segment is still the primary
focus, with essential investments made to leverage
new business.
Despite strong competition in the Auto/RCF line,
the insurer increased its fleet to approximately 1.6
million vehicles—which proves its power of
competitiveness, mainly due to the establishment
of a refined and segmented quoting process.
Another important fact relates to improvements to
current products and the creation of products for a
specific target market. Among them, it is worth
noting the launch of the First Vehicular Protection
of Bradesco Seguro (Bradesco Seguro Primeira
Proteção Veicular), exclusive to Bradesco’s
account holders, which provides assistance to new
and used vehicles with as many as 15 years of use,
through the Day and Night Support Services. The
launch of the Harley-Davidson Insurance, with
exclusive coverage and services provided to
owners of the world’s most famous motorcycles.
In order to provide its customers with a better
service, Bradesco Auto/RE currently has 27
Bradesco Auto Centers (BAC), which offer
policyholders the greatest variety of services in a
single place, including: auto claims services, rental
car reservations, installation of anti-theft
equipment, preventative maintenance checks,
glass repairs or replacement and environmental
vehicle inspections.
.
Economic and Financial Analysis
Bradesco 71
Number of Policyholders at Auto/RE

Mass insurance targets individuals, self-employed
professionals and SMEs. The launch of new
products combined with the continuous
improvement to methods and systems has
contributed to maintenance of customer base,
which comprises around 3.7 million customers in
the last 12 months.
It is worth pointing out that we continued with a
strong strategy for the Residential Insurance
segment, totaling more than 1.7 million insured
homes. We recently launched Monthly Home
Insurance, a product that can be debited directly
from customers’ checking accounts.





1,636 1,575 1,530
1,450
1,362
1,456
1,608 1,642
2,332
2,296
2,268
2,202
2,269
2,157
2,274
2,046
3,968
3,871
3,798
3,652 3,631 3,613
3,882
3,690
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
In thousands
Auto/RCF Basic Lines
Economic and Financial Analysis

72 Report on Economic and Financial Analysis – June 2014
Fee and Commission Income
A breakdown of the variation in Fee and Commission Income for the respective periods is presented below:
R$ million
Half Quarter
Card Income 3,818 3,421 1,919 1,899 397 20
Checking Account 1,916 1,722 972 944 194 28
Loan Operations 1,198 1,090 625 573 108 52
Fund Management 1,139 1,131 578 562 8 16
Collection 768 710 388 380 58 8
Consortium Management 413 344 214 199 69 15
Underwriting / Financial Advisory
Services 381 346 160 221 35 (61)
Custody and Brokerage Services 246 260 121 125 (14) (4)
Payments 196 166 100 96 30 4
Other 536 391 251 284 145 (33)
Total 10,611 9,582 5,328 5,283 1,030 45
Variation
Fee and Commission Income
2Q14 1H13 1Q14 1H14

Explanations of the main items that influenced the variation in Fee and Commission Income between periods
can be found below.

Economic and Financial Analysis
Bradesco 73
Fee and Commission Income
Card Income
In the second quarter of 2014, card income
increased to R$ 1,919 million, up R$ 20 million
over the previous quarter, mainly due to: (i)
increased volume of transactions in the period; and
(ii) increased income for the period.
In the comparison between the first half of 2014
and the same period of the previous year, card
income was up 11.6%, or R$ 397 million, mainly
due to: (i) the increase in revenue from purchases
and services, resulting from the 11.3% increase in
card revenue, which amounted to R $ 62.8 billion
in the first half of 2014; (ii) the increase in the credit
and debit card base; and (iii) the increase in
transactions in the period.








310.7
326.3
316.2
334.4
342.4
353.7
341.6
347.8
1,527
1,652 1,676
1,745
1,824
1,920 1,899 1,919
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Number of Transactions
In millions
Transactions - Credit Cards Card Income (R$ million)
25,936
28,974
27,186
29,258
30,068
32,895
30,983
31,818
83.48
88.80
85.98
87.49 87.82
93.00
90.70 91.48
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Revenues
R$ million
Credit Cards Average Ticket (R$)
Economic and Financial Analysis
74 Report on Economic and Financial Analysis – June 2014
Fee and Commission Income
Checking Account
Checking account service revenues were up 3.0%
in the second quarter of 2014, compared to the
previous quarter, mainly due to: (i) the expansion
of the customer service portfolio; and (ii) an
increase in business volume.
In the comparison between the first half of 2014
and the same period of the previous year, this
revenue was up R$ 194 million, or 11.3%, mainly
due to: (i) the expansion of the checking account
customer base, which posted a net increase of
251,000 active checking account holders (226,000
individual customers and 25,000 corporate
customers); (ii) the expansion of the customer
service portfolio; and (iii) an increase in business
volume


Loan Operations
Loan operation revenue totaled R$ 625 million
in the second quarter of 2014, up 9.1% compared
to the previous quarter mainly due to the increased
volume of operations contracted in the quarter.
Year-over-year, the 9.9% increase in the first half
of 2014 was mainly driven by: (i) increased volume
of operations contracted in the period; and (ii)
greater income from collaterals, up 10.8%, derived
mostly from a 10.2% growth in the volume of
Sureties and Guarantees.


24,130 24,226 24,349
24,760 24,879 24,889 25,067 24,986
1,495 1,467 1,471
1,489 1,504 1,511 1,513 1,514
25,625 25,693 25,820
26,249 26,383 26,400
26,580 26,500
826
866
833
889
933
953
944
972
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
In thousands (Active Checking Account Holders)
Corporate
Individuals
Income from Checking Accounts (R$ million)
101.7 105.0 105.8 108.2 110.4 112.7 112.8 112.2
155.7
163.2 166.9
171.1
175.1
183.8 186.9 188.0
114.3
117.3
119.0
123.3
127.1
130.7
132.7 135.1
371.7
385.5
391.7
402.6
412.6
427.3
432.3 435.2
538
517 517
573
553
598
573
625
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Expanded Loan Portfolio
R$ billion
Individuals
Corporations
SMEs
Income from Loan Operations (R$ million)
54,732
59,911 59,728
63,383
65,348
67,586 67,518
69,875
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
R$ million
Sureties and Guarantees
Economic and Financial Analysis

Bradesco 75
Fee and Commission Income
Fund Management
In the second quarter of 2014, income from fund
management totaled R$ 578 million, up
R$ 16 million, compared to the previous quarter,
mainly due to the 5.3% increase in the volume of
funds and portfolios raised and managed.
In the comparison between the first half of 2014
and the same period of the previous year, the
R$ 8 million increase was mainly driven by: (i) the
growth in the average volume of funds and
portfolios raised and managed in the period; and
(ii) a 12.0% increase in the Ibovespa index in the
period, impacting income from managed funds and
portfolios pegged to equities.


Jun14 Mar14 Jun13 Quarter 12M
Investment Funds 423,668 402,449 387,172 5.3 9.4
Managed Portf olios 30,964 28,649 31,350 8.1 (1.2)
Third-Party Fund Quotas 7,614 8,078 8,715 (5.7) (12.6)
Total 462,246 439,176 427,237 5.3 8.2
x x x x x x
Jun14 Mar14 Jun13 Quarter 12M
Investment Funds – Fixed Income 395,546 375,054 359,835 5.5 9.9
Investment Funds – Equities 28,122 27,395 27,337 2.7 2.9
Investment Funds – Third-Party Funds 5,496 5,828 6,851 (5.7) (19.8)
Total - Investment Funds 429,164 408,277 394,023 5.1 8.9
x
Managed Portf olios - Fixed Income 21,870 20,297 23,053 7.7 (5.1)
Managed Portf olios – Equities 9,094 8,352 8,297 8.9 9.6
Managed Portf olios - Third-Party Funds 2,118 2,250 1,864 (5.9) 13.6
Total - Managed Funds 33,082 30,899 33,214 7.1 (0.4)
x
Total Fixed Income 417,416 395,351 382,888 5.6 9.0
Total Equities 37,216 35,747 35,634 4.1 4.4
Total Third-Party Funds 7,614 8,078 8,715 (5.7) (12.6)
Overall Total 462,246 439,176 427,237 5.3 8.2
R$ million Variation %
Shareholders' Equity
R$ million Variation %
Distribution



404.4
441.8
435.4
427.2
438.3 435.4 439.2
462.2
562
550 550
581
604
589
562
578
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ billion (Fund Portfolio)
Managed Funds and Portfolios
Income from Fund Management (R$ million)
Economic and Financial Analysis
76 Report on Economic and Financial Analysis – June 2014
Fee and Commission Income
Cash Management Solutions (Payments and Collection)
In the second quarter of 2014, income from
payments and collections increased
by R$ 12 million compared to the previous quarter,
mainly due to an increase in business volume.
Year over year, the 10.0% – or R$ 88 million –
increase in the first half of 2014 was mainly due to
the greater volume of processed documents, up
from 1,037 million in the first half of 2013 to 1,078
million in the first half of 2014, up 4.0% in the
period.

Consortium Management
In the second quarter of 2014, income from
consortium management was up 7.5% over the
previous quarter, driven by sales in the period. On
June 30, 2014, Bradesco had 1.010 thousand
active quotas (957,000 active quotas on March 31,
2014), ensuring a leading position in all the
segments it operates (real estate, auto and
trucks/tractors/machinery and equipment).
In the comparison between the first half of 2014
and the same period of the previous year, the
20.1% increase in income from consortium
management was mainly driven by: (i) a higher
volume of bids received; (ii) the increase in the
average ticket; and (iii) the increase in sales of new
quotas, from 821 thousand active quotas on June
30, 2013 to 1.010 thousand active quotas on June
30, 2014, an increase of 189 thousand net quotas.



492
509 511
526
540
548 545
533
418 421 423
454
468 467
476
488
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Processed Documents (in millions) Payment and Collection Income (R$ million)
477
501
543
582
637
678
710
757
194
197
198
200
199
204
203
208
36
38
39
39
40
42
44
45
707
736
780
821
876
924
957
1,010
159 161
167
177
182
196 199
214
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Number of Net Consortium Quotas (in thousands)
Trucks and Tractors
Real Estate
Auto
Consortium Management Income (R$ million)
Economic and Financial Analysis
Bradesco 77
Fee and Commission Income
Custody and Brokerage Services
Custody service income reached R$ 121 million in
the second quarter of 2014 and R$ 246 million in
the first half of 2014, down 3.2% quarter-over-
quarter and 5.4% year-over-year. This behavior is
mainly attributed to lower volumes traded on
BM&FBovespa, which affected the brokerage
income.


Underwriting/Financial Advisory Services
The quarter-over-quarter R$ 61 million reduction
resulted primarily from the excellent performance
in the capital market during the first quarter of 2014.
It is important to note that variations recorded in
this income derive from the volatile behavior of the
capital market.
In the comparison between the first half of 2014
and the same period of the previous year, the
R$ 35 million increase is mainly related to the
higher business volume in the period.



890
973
958
942
959
941 941
958
122 124 124
136
127 124 125 121
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Assets under Custody (R$ billion)
Custody and Brokerage Service Income (R$ million)
94
198
121
225
69
153
221
160
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Underwriting / Financial Advisory Services
Economic and Financial Analysis
78 Report on Economic and Financial Analysis – June 2014
Personnel and Administrative Expenses
R$ million
Half Quarter
Personnel Expenses
Structural 5,373 5,054 2,727 2,646 320 81
Payroll/Social Charges 3,980 3,755 2,026 1,954 225 72
Benef its 1,393 1,299 701 692 94 9
Non-Structural 1,353 1,197 721 633 157 88
Management and Employee Prof it Sharing 749 672 390 360 76 31
Provision f or Labor Claims 403 374 220 182 29 38
Training 54 39 36 17 15 19
Termination Costs 148 112 74 74 36 -
Total 6,727 6,250 3,448 3,279 477 169
x
Administrative Expenses
Outsourced Services 1,827 1,912 924 903 (85) 21
Depreciation and Amortization 918 809 466 452 109 14
Communication 754 795 378 376 (41) 2
Data Processing 632 615 326 306 17 20
Rental 430 407 216 214 23 2
Transportation 402 404 200 203 (2) (3)
Financial System Services 385 368 188 197 17 (9)
Advertising and Marketing 349 330 170 178 19 (8)
Asset Maintenance 331 316 180 152 15 28
Security and Surveillance 277 239 139 138 38 1
Materials 168 146 91 77 22 14
Water, Electricity and Gas 118 119 57 61 (1) (4)
Trips 65 61 34 30 4 4
Other 405 512 207 198 (107) 9
Total 7,061 7,033 3,575 3,486 28 89
x
Total Personnel and Administrative Expenses 13,788 13,283 7,023 6,765 505 258
x 0 -
Employees 99,027 101,951 99,027 99,545 (2,924) (518)
Service Points 73,208 70,829 73,208 73,320 2,379 (112)
Variation Personnel and Administrative Expenses
1Q14 2Q14 1H13 1H14
In the second quarter of 2014, total personnel and administrative expenses amounted to R$ 7,023 million, up
3.8% in comparison with the previous quarter. In the first half of 2014, total personnel and administrative
expenses amounted to R$ 13,788 million, up 3.8% compared to the same period in the previous year.
Personnel Expenses
In the second quarter of 2014, personnel expenses
amounted to R$ 3,448 million, varying 5.2%, or
R$ 169 million, when compared to the previous
quarter.
The R$ 81 million, mainly due to the reduced
number of vacation leaves in the second quarter of
2014, for a total amount of R$ 74 million.
The R$ 88 million increase in non-structural
expenses derives mainly from greater expenses
with: (i) provision for labor claims, totaling
R$ 38 million; (ii) employee and management profit
sharing expenses, totaling R$ 31 million; and (iii)
training activities, totaling R$ 19 million.




Economic and Financial Analysis
Bradesco 79
Personnel and Administrative Expenses
Personnel Expenses
In the comparison between the first half of 2014
and the same period of the previous year, the
R$ 477 million increase was mainly due to: (i)
structural expenses, totaling R$ 320 million,
related to the increase in expenses with payroll,
social charges and benefits, impacted by higher
salaries (2013 collective bargaining agreement);
and (ii) increase of R$ 157 million in non-structural







expenses, which results mainly from greater
expenses with: (i) employee and management
profit sharing expenses (PLR), totaling
R$ 76 million; and (ii) provision for labor claims,
totaling R$ 29 million.




30.0
30.4
29.8
31.3
33.0
34.5
32.9
34.8
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Personnel Expenses per Employee - R$ thousand
8,226
8,503
8,702
8,795
8,951
9,037
9,264
9,403
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
Total Assets per Employee - R$ thousand
104,100
103,385
102,793
101,951
101,410
100,489
99,545
99,027
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
Increase in the Number of Employees
167
152
164
210 210
222
182
220
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Evolution of Expenses with the Provision for Labor Claims -
R$ million
246
249
251
257
260
263
267
268
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
Checking Account Customers per Employee (unit)
Economic and Financial Analysis

80 Report on Economic and Financial Analysis – June 2014
Personnel and Administrative Expenses

Administrative Expenses
In the second quarter of 2014, administrative
expenses stood at R$ 3,575 million, up
R$ 89 million or 2.6% compared to the previous
quarter, mainly due to higher expenses with: (i)
maintenance and preservation of assets, totaling
R$ 28 million; (ii) data processing, totaling
R$ 20 million; (iii) outsourced services, totaling
R$ 21 million; (iv) depreciation and amortization,
totaling R$ 14 million; and (v) materials, totaling
R$ 14 million.
Despite the higher expenses with (i) the opening of
2,379 service points in the period, mainly Bradesco
Expresso points, for a total of 73,208 service points
on June 30, 2014, and (ii) higher business and
service volume in the period, the administrative
expenses increased only 0.4% compared to the
same period in the previous year, as a result of the
continued efforts to reduce costs, led by our
Efficiency Committee. It is worth noting that IPCA
and IGP-M inflation indexes reached 6.52% and
6.25% in the last 12 months, respectively.





2,045 2,049
2,003
2,045
2,138
2,170
2,197
2,154
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
Total Deposits per Employee - R$ thousand
10.5 10.4 10.4 10.3 10.3
10.6 10.6 10.6
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
Employees by Branches, PAs and PAEs (unit)
3,565
3,755
3,455
3,578
3,631
3,848
3,486
3,575
67,225
68,917 69,528
70,829
71,724
72,736 73,320
73,208
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Administrative Expenses and Service Points
Administrative Expenses (R$ million) Service Points - Units
360
378
348
360
368
408
373
382
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Administrative Expenses by Branches, PAs and PAEs - R$
thousand
Economic and Financial Analysis
Bradesco 81
Operating Coverage Ratio
(1)

In the quarter, the coverage ratio over the last 12
months maintained its improvement with a 0.5 p.p.
growth, mainly due to an increase in fee and
commission income, combined with ongoing cost
control efforts, including the initiatives of our
Efficiency Committee and measures applied to
increase the offer of products and services to the
entire client base.
It should be pointed out that 74.1% is the best rate
over the last six years.

(1) Fee and Commission Income/Administrative and Personnel
Expenses (in the last 12 months).
Tax Expenses
Tax expenses totaled R$ 1,120 million in the
second quarter of 2014, up R$ 6 million, or 0.5%
compared to the previous quarter, remaining
virtually stable.
In the year-over-year comparison, such expenses
increased by R$ 94 million, or 4.4%, basically due
to increased PIS/ISS expenses due to the increase
in taxable income.

Equity in the earnings (losses) of unconsolidated companies
In the second quarter of 2014, the equity in the
earnings (losses) of unconsolidated companies
was R$ 35 million, down R$ 17 million, or 32.7%
compared to the previous quarter, mainly due to
lower results from the unconsolidated company
IRB – Brasil Resseguros.
In the comparison between the first half of 2014
and the same period of the previous year, the
R$ 72 million increase was mainly attributed to
improved results from the unconsolidated company
IRB – Brasil Resseguros.



64.4
66.5
67.7
69.6
70.8
71.8
73.6 74.1
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
%
1,038
1,098
1,123
1,017
987
1,254
1,114 1,120
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
45 45
3
12
2
26
52
35
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Equity in the Earnings (Losses) of Unconsolidated Companies
Economic and Financial Analysis
82 Report on Economic and Financial Analysis – June 2014
Operating income
Operating income stood at R$ 6,082 million in the
second quarter of 2014, up R$ 672 million, or
12.4%, from the previous quarter. Such behavior is
mainly due to: (i) increased net interest income
results, totaling R$ 1,104 million; (ii) reduction in
other operating expenses (net of other income),
totaling R$ 58 million; (iii) increase in service
income, totaling R$ 45 million; partially offset by:
(iv) increased expenses with allowance for loan
losses, totaling R$ 280 million; and (v) increase in
personnel and administrative expenses, totaling
R$ 258 million.
In the comparison between the first half of 2014
and the same period of the previous year, the
R$ 2,362 million or 25.9% increase was mainly due
to: (i) higher net interest income, totaling
R$ 1.735 million; (ii) increase in service income,
totaling R$ 1,029 million; (iii) increase in the
operating income of Insurance, Pension Plans and
Capitalization Bonds, totaling R$ 331 million; (iv)
lower expenses with allowance for loan losses,
totaling R$ 201 million; partially offset by: (v) higher
personnel and administrative expenses, totaling
R$ 505 million; and (vi) increase in other operating
expenses (net of other income), totaling R$ 407
million.


Non-Operating Income
In the second quarter of 2014, non-operating
income posted a loss of R$ 34 million, down
R$ 2 million over the previous quarter and up
R$ 8 million over the same period in the previous
year. The variation recorded in the half-over-half
comparison reflects greater non-operating
expenses (such as losses on sale of foreclosed
assets/other) in the period.


4,388
4,449
4,547 4,583
4,769
4,945
5,410
6,082
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
(20)
(29)
(38)
(24)
(27)
(31)
(36)
(34)
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
R$ million
Return to Shareholders
3
Management, Preparation
and Disclosure of the
Report on Economic and
Financial Analysis and the
Consolidated Financial
Statements of Bradesco
Organization
8
Return to Shareholders
84 Report on Economic and Financial Analysis – June 2014
Sustainability
Bradesco maintains ISO 14064 certification
Under the goal of consolidating the guidelines
adopted to measure and report greenhouse gas
emissions and savings, the Bradesco Organization
received the ISO 14064-1:2007 Certification for the
7
th
consecutive year.
During the months of March and April, Fundação
Vanzollini audited greenhouse gas emission
inventories of Bradesco, Grupo Segurador,
Bradesco Financiamentos, Bradesco Promotora
and Scopus Tecnologia.
In addition to supporting the Organization’s
transparency regarding greenhouse gas
emissions, the ISO 14064 Certification generates
new opportunities and consolidates Bradesco’s
commitment towards issues regarding the
management of impacts based on climate
changes.
Investor Relations – IR
In the Investor Relations area, the
second quarter of 2014 was marked by
participation in 93 events: 51 in Brazil and 42
abroad. A total of 1,012 analysts and investors
were covered during the period.
We participated in conferences held in Canada,
Chile, U.S., France and England.



Corporate Governance
Bradesco’s management is made up of the Board
of Directors and the Statutory Board of Executive
Officers. The former is composed of nine members
who are eligible for reelection, and includes eight
external members, including the Chairman (Mr.
Lázaro de Mello Brandão) and one internal
member (The Chief Executive Officer, Mr. Luiz
Carlos Trabuco Cappi). Board members are
elected by the Annual Shareholders’ Meeting,
which elect the members of the Board of Executive
Officers.
Bradesco’s Corporate Governance structure
includes six (6) Committees subordinated to the
Board of Directors, two (2) of which are Statutory
Committees (Audit and Compensation) and four (4)
which are Non-Statutory Committees (Ethical
Conduct, Internal Controls and Compliance,
Integrated Risk Management and Capital
Allocation and Sustainability), in addition to multiple
Executive Committees subordinated to the Board
of Executive Officers, assisting it in performing its
duties.
Bradesco guarantees its shareholders, as a
minimum dividend, 30% of adjusted net income, as
well as 100% tag-along rights for common shares
and 80% for preferred shares. Preferred shares are
also entitled to dividends 10% greater than those
paid to common shares.
Bradesco was rated brAA+ (Excellent Corporate
Governance Practices) by Austin Rating. Bradesco
voluntarily adhered to Level 1 Corporate
Governance of BM&FBovespa in 2001, as well as
to the Code of Self-Regulation and Best Practices
for Publicly Held Companies, issued by the
Brazilian Association of Publicly Held Companies
(Abrasca), in 2011.
All subjects proposed for the General Meetings
were duly approved on March 10, 2014.
On March 12, 2014, the CEO, Mr. Luiz Carlos
Trabuco Cappi, was elected Vice-Chairman of
Bradesco’s Board of Directors.
Additional information is available atBradesco’s
Investor Relations website
(www.bradescori.com.br – Corporate Governance
Section).
Return to Shareholders
Bradesco 85
Bradesco Shares
Number of Shares – Common and Preferred Shares
(1)

Jun14 Mar14 Jun13
Common Shares 2,100,738 2,100,738 2,100,738
Preferred Shares 2,094,652 2,094,652 2,098,372
Subtotal – Outstanding Shares 4,195,391 4,195,391 4,199,110
Treasury Shares 11,883 11,883 8,164
Total 4,207,274 4,207,274 4,207,274
In thousands
(1) Excluding bonuses and stock splits during the periods.
On June 30, 2014, Bradesco’s capital stock stood
at R$ 38.1 billion, composed of
4,207,274 thousand no-par, book-entry shares, of
which 2,103,637 thousand were common shares
and 2,103,637 thousand were preferred shares.
The largest shareholder is the holding company
Cidade de Deus Cia. Comercial de Participações,
which directly holds 48.7% of voting capital and
24.4% of total capital.
Cidade de Deus Cia. Comercial de Participações is
controlled by the Aguiar Family, Fundação
Bradesco and another holding company, Nova
Cidade de Deus Participações S.A., which is in turn
controlled by Fundação Bradesco and BBD
Participações S.A., whose shareholders are the
majority of Bradesco’s Board of Directors, Statutory
Board of Executive Officers and management-level
employees.
Number of Shareholders – Domiciled in Brazil and Abroad
Jun14 %
Ownership of
Capital (%)
Jun13 %
Ownership of
Capital (%)
Individuals 323,284 89.7 22.4 327,527 89.8 22.0
Companies 35,961 10.0 45.7 36,336 10.0 45.4
Subtotal Domiciled in Brazil 359,245 99.7 68.0 363,863 99.7 67.4
Domiciled Abroad 1,104 0.3 32.0 1,019 0.3 32.7
Total 360,349 100.0 100.0 364,882 100.0 100.0

Regarding Bradesco’s shareholders, either
residing in Brazil or abroad, 359,245 of
shareholders were domiciled in Brazil as of June
30, 2014, accounting for 99.7% of

the total number of shareholders and representing
68.0% of shares. The number of shareholders
residing abroad was 1,104, accounting for 0.3% of
the total number of shareholders and representing
32.0% of shares.





Return to Shareholders
86 Report on Economic and Financial Analysis – June 2014
Bradesco Shares
Average Daily Trading Volume of Shares
Bradesco shares are traded on BM&FBovespa
(São Paulo) and the New York Stock Exchange
(NYSE). Since November 21, 2001, Bradesco
trades its ADRs backed by preferred shares on
NYSE. As of March 13, 2012, it has also traded
ADRs backed by common shares.
The average daily trading volume reached
R$ 541 million during the first half of 2014.
Compared to the previous year, average daily
trading volume was up 1.9%, due to the higher
trading volume of our ADRs backed by preferred
shares on NYSE.




26 30
58
92
141
175
161 155
193
233
292 288
14
16 52
112
212
338
266
315
312
278
239 253
40
46
110
204
353
513
427
470
505
511
531
541
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Jun14
BM&FBovespa NYSE Total
47%
53%
Daily Average Volume
Return to Shareholders
Bradesco 87
Bradesco Shares
Appreciation of Preferred Shares - BBDC4
The graph shows the change in Bradesco’s
preferred shares, taking into account the
reinvestment of dividends, compared to the
Ibovespa and the Interbank Deposit Rate (CDI).

An investment of R$ 100 in Bradesco shares by
late December 2001 would be worth approximately
R$ 1,037 by June 2014, which is a substantially
larger appreciation compared to Ibovespa and CDI
for the same period.



Share and ADR Performance
(1)

2Q14 1Q14 Variation % 1H14 1H13 Variation %
Adjusted Net Income per Share
0.91 0.83 9.6 1.74 1.41 23.4
Dividends/Interest on Shareholders' Equity – Common Share
(after Income Tax)
0.26 0.23 13.0 0.49 0.40 22.8
Dividends/Interest on Shareholders' Equity – Preferred Share
(after Income Tax)
0.28 0.26 7.7 0.54 0.44 23.3
In R$ (unless otherwise stated)


Jun14 Mar14 Variation % Jun14 Jun13 Variation %
Book Value per Common and Preferred Share 18.31 17.48 4.7 18.31 15.72 16.5
Last Trading Day Price – Common Shares 32.24 33.61 (4.1) 32.24 30.60 5.4
Last Trading Day Price – Preferred Shares 32.05 31.19 2.8 32.05 28.80 11.3
Last Trading Day Price – ADR ON (US$) 14.67 14.87 (1.3) 14.67 13.86 5.8
Last Trading Day Price – ADR PN (US$) 14.52 13.67 6.2 14.52 13.01 11.6
Market Capitalization (R$ million)
(2)
134,861 135,938 (0.8) 134,861 124,716 8.1
In R$ (unless otherwise stated)

(1) Adjusted for corporate events in the periods; and
(2) Number of shares (excluding treasury shares) vs. closing price for common and preferred shares on the last trading day of the period.


BBDC4 Ibovespa CDI
Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Jun14
Série1
In Reais
Base 100
1,037
486
392
Return to Shareholders
88 Report on Economic and Financial Analysis – June 2014
Bradesco Shares
Recommendation of Market Analysts – Target Price
Market analysts issue periodical recommendations
on Bradesco preferred shares (BBDC4). In July
2014, we had access to 11 reports prepared by
these analysts.
Their recommendations and a general consensus
on the target price for December 2014 can be
found below:
Buy 45.5 Average 36.1
Keep 54.5 Standard Deviation 3.6
Sell - Higher 45.0
Under Analysis - Lower 32.4
Recommendations % Target Price in R$ for Dec14
For more information on target price and
recommendation by each market analyst that
monitors the performance of Bradesco shares, go
to our Shareholder Relationship website at:
www.bradescori.com.br > Information to
Shareholders > Analysts’ Consensus.


Market Capitalization
On June 30, 2014, Bradesco’s market
capitalization, including closing quotes of Common
and Preferred shares, was

R$ 134.9 billion, up 8.1% when compared to the
same period in 2013.

113.1
131.9
145.6
124.7
136.1
128.1
135.9
134.9
59.2 61.0
56.4
47.5
52.3 51.5
50.4
53.2
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
Market Capitalization (Common and Preferred Shares) Ibovespa (thousand points)
Return to Shareholders
Bradesco 89
Main Indicators
Price/Earnings Ratio
(1)
: indicates a possible
number of years that the investor would recover the
capital invested, based on the closing prices of
common and preferred shares.

(1) Twelve-month adjusted net income.




Price/Book Ratio: indicates the multiple by which
Bradesco’s market capitalization exceeds its book
value.




Dividend Yield
(1)

(2)
: the ratio between share price
and dividends and/or interest on shareholders’
equity paid to shareholders in the last 12 months,
which indicates the return on investment
represented by the allocation of net income.
(1) Source: Economatica; and
(2) Calculated by the share with highest liquidity.

9.9
11.4
12.5
10.6
11.4
10.5 10.7
10.0
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
Price/Earnings Ratio (P/E ratio) (1)
1.7
1.9
2.1
1.9
2.0
1.8
1.9
1.8
Sept12 Dec Mar13 Jun Sept Dec Mar14 Jun
Price to Book Ratio (P/B ratio)
3.4
2.9 2.9
3.5
3.4
3.0
3.3
3.2
3Q12 4Q 1Q13 2Q 3Q 4Q 1Q14 2Q
Dividend Yield
(1) (2)
- %
Return to Shareholders
90 Report on Economic and Financial Analysis – June 2014
Dividends/Interest on Shareholders’ Equity

In the first half of 2014, R$ 2,396 million were paid
to shareholders as interest on shareholders’ equity
(JCP) and dividends. Over the past 12 months, the
total JCP and Dividends assigned to shareholders
account for 34.7% of the net income for the fiscal
year and, considering the income tax deduction
and JCP assignments, 31.5% of the net income.


(1) In the last 12 months.
Weight on Main Stock Indexes
Bradesco shares comprise Brazil’s main stock
indexes, including the IBrX-50 and IBrX-100
(indexes that measure the total return of a
theoretical portfolio comprising 50 and 100 of the
most traded shares on BM&FBovespa,
respectively), IFNC (Financial Index which
comprises banks, insurance and financial
companies), ISE (Corporate Sustainability Index),
IGC (Special Corporate Governance Stock Index),
the ITAG (Special Tag-Along Stock Index), the
ICO2 (index comprising shares of companies that
participate in the IBrX-50 index and that accepted
to take part in this initiative by adopting transparent
greenhouse gas emission practices), and the Mid-
Large Cap Index (MLCX), which measures the
return of a portfolio composed of the highest cap
companies listed.
Abroad, Bradesco shares are listed on NYSE’s
Dow Jones Sustainability World Index and the
FTSE Latibex Brazil Index of the Madrid Stock
Exchange.

Jun14 In %
(1)
Ibovespa 8.7
IBrX-50 9.3
IBrX-100 8.1
IFNC 18.7
ISE 4.9
IGC 6.1
ITAG 11.3
ICO2 14.0
MLCX 8.6

(1) Represents Bradesco’s weight on the portfolio of main Brazilian stock market indexes.
2,718
3,369
3,740
3,895
4,078
2,396
31.5% 31.5% 31.5% 31.5%
31.5% 31.5%
35.7%
35.4%
35.7%
36.0%
35.7%
34.7%
-
1,000
2,000
3,000
4,000
5,000
6,000
12M09 12M10 12M11 12M12 12M13 1H14
R$ million
Dividends/Interest on Shareholders' Equity Net Pay Out (1) Gross Pay Out (1)
Additional Information
4
Management, Preparation
and Disclosure of the
Report on Economic and
Financial Analysis and the
Consolidated Financial
Statements of Bradesco
Organization
8
Additional Information
92 Report on Economic and Financial Analysis – June 2014
Market Share of Products and Services

Market shares held by the Organization in the Banking and Insurance industries and in the Customer Service
Network are presented below.
Jun14 Mar14 Jun13 Mar13
Banks – Source : Brazilian Central Bank (Bacen)
Demand Deposits N/A 15.7 16.0 16.6
Savings Deposits N/A 13.3 13.4 13.6
Time Deposits N/A 10.8 11.0 11.2
Loan Operations 10.5 (1) 10.7 11.0 11.2
Loan Operations - Private Institutions 22.3 (1) 22.3 22.1 21.9
Loan Operations - Vehicles Individuals (CDC + Leasing) 13.2 (1) 13.3 14.2 14.5
Payroll-Deductible Loans 12.1 (1) 12.2 11.6 11.3
Number of Branches 20.6 20.6 21.1 21.3
Banks – Source: Social Security National Institute (INSS)/Dataprev
Benef it Payment to Retirees and Pensioners N/A 25.8 25.1 24.9
Banks – Source: Anbima
Managed Investment Funds and Portf olios 18.5 18.0 18.0 18.5
Insurance, Pension Plan and Capitalization Bond Premiums 23.8 (3) 23.4 24.0 22.4
Insurance Premiums (including Long-Term Lif e Insurance - VGBL) 23.3 (3) 22.6 23.9 21.9
Lif e Insurance and Personal Accident Premiums 17.0 (3) 17.6 16.3 16.4
Auto/Basic Lines Insurance Premiums 10.4 (3) 10.3 9.1 8.8
Auto/Optional Third-Party Liability (RCF) Insurance Premiums 13.1 (3) 12.9 11.0 10.2
Health Insurance Premiums 45.7 (3) 47.3 48.8 48.2
Income f rom Pension Plan Contributions (excluding VGBL) 32.4 (3) 31.8 30.9 31.2
Capitalization Bond Income 23.6 (3) 24.3 20.9 22.1
Technical Reserves f or Insurance, Pension Plans and Capitalization Bonds 27.9 (3) 28.3 29.5 29.1
Insurance and Pension Plans – Source: National Federation of Life and Pension Plans (Fenaprevi)
Income f rom VGBL Premiums 25.3 (2) 24.9 28.5 23.7
Income f rom Unrestricted Benef its Generating Plans (PGBL) Contributions 26.2 (2) 25.8 25.7 27.2
Pension Plan Investment Portf olios (including VGBL) 31.7 (2) 31.8 32.6 32.7
Leasing – Source: Brazilian Association of Leasing Companies (ABEL)
Lending Operations 20.0 (2) 20.0 19.7 19.4
Consortia – Source: Bacen
Real Estate 30.0 (2) 29.9 30.3 30.4
Auto 29.4 (2) 28.2 26.7 26.3
Trucks, Tractors and Agricultural Implements 18.5 (2) 18.5 18.9 19.3
International Area – Source: Bacen
Export Market 18.4 20.2 17.4 17.1
Import Market 14.3 15.0 15.4 15.0
Insurance, Pension Plans and Capitalization Bonds – Source: Insurance Superintendence (Susep) and National Agency
for Supplementary Healthcare (ANS)

(1) SFN data is preliminary;
(2) Base Date: Apr/14; and
(3) Base Date: May/14.
N/A – Not Available.

Additional Information
Additional Information
Bradesco 93
Market Share of Products and Services
Branch Network
Bradesco Market Bradesco Market
North 278 1,106 25.1% 279 1,081 25.8%
Northeast 847 3,616 23.4% 850 3,527 24.1%
Midwest 346 1,806 19.2% 346 1,716 20.2%
Southeast 2,429 11,848 20.5% 2,430 11,623 20.9%
South 780 4,317 18.1% 787 4,256 18.5%
Total 4,680 22,693 20.6% 4,692 22,203 21.1%
Jun14
Market
Share
Jun13
Market
Share
Region


Reserve Requirements
% Jun14 Mar14 Dec13 Sept13 Jun13 Mar13 Dec12 Sept12
Demand Deposits
Rate
(2)
45 44 44 44 44 44 44 44
Additional
(3)
- - - - - - - -
Reserve Requirements
(1)
34 34 34 34 34 34 34 34
Reserve Requirements (Microf inance) 2 2 2 2 2 2 2 2
Free 19 20 20 20 20 20 20 20
Savings Deposits
Rate
(4)
20 20 20 20 20 20 20 20
Additional
(3)
10 10 10 10 10 10 10 10
Reserve Requirements 65 65 65 65 65 65 65 65
Free 5 5 5 5 5 5 5 5
Time Deposits
Rate
(3) (5)
20 20 20 20 20 20 20 20
Additional
(3)
11 11 11 11 11 11 11 12
Free 69 69 69 69 69 69 69 68

(1) At Bradesco, reserve requirements are applied to Rural Loans;
(2) Collected in cash and not remunerated;
(3) Collected in cash with the Special Clearance and Custody System (Selic) rate;
(4) Collected in cash with the Reference Interest Rate (TR) + interest of 6.17% p.a. for deposits made until 05.03.12, and TR + 70% of the Selic
rate for deposits made as of 05.04.2012, when the Selic rate is equal to or lower than 8.5% p.a.; and
(5) As of the calculation period from 03.29.2010 to 04.01.2010, with compliance on 04.09.2010, reserve requirements are now exclusively in cash,
and may be paid with credits acquired as provided for by legislation in force.

Note: On 07.24.2014, the Central Bank published Circular Letter N
o
3712/14, which allows certain credit operations to be used to shorten the term
of reserve requirements for Long-Term Funding.



Additional Information
94 Report on Economic and Financial Analysis – June 2014
Investments in Infrastructure, Information Technology and Telecommunications
During the first five months of the year, we reached
a record figure of 580 million transactions
performed in Bradesco Mobile, up 100% compared
to the same period in 2013. A total of 15% of
Bradesco’s transactions are currently performed
through this channel, which offers over 180
different services. Another major breakthrough was
the use of the Mobile Token (M-Token), which
reached the milestone of 1 million active clients.
A new ATM terminal was launched in June allowing
customers to make cash deposits without having to
use deposit envelopes, instantly crediting
deposited amounts in the customers’ accounts.
The terminal identifies different bills and detects
counterfeit bills. Customers may now access this
pioneering initiative among major Brazilian banks
at the Bradesco Next store, located at Shopping JK
Iguatemi in São Paulo. For those who still haven’t
visited the space, the space where Bradesco
showcases all of its innovative technology
solutions, the Bradesco Next mobile app allows
users to learn more about all of the different and
high-end solutions available at the store, through a
virtual and interactive tour which is activated by
tilting their mobiles or tablets in the right direction.
The app allows users to experience part of the
innovations displayed at the physical site. Users
can also view the schedule of events and set up
reminders for their favorite attractions. Customers
can also watch all “Momento Next” events online
and live.
Another innovation for American Express
Membership Card holders is the app for Android
and iOS mobiles, which gives users access to
benefits and services such as promotions,
discounts, entertainment, lifestyle and reward
programs, among several others.
The Click Conta and Bradesco Universitários
Internet Banking websites were also fully
overhauled. Featuring an entirely new visual
identity, customers now access a customized
environment based on their profiles, with themed
backgrounds. Bradesco Financiamentos also had
its website redesigned and received an even more
innovative and modern look. With streamlined
browsing features, customers can now easily solve
doubts and find information on specific products
and services.
We participated in the 13
th
International Fair of
Rehabilitation, Inclusion, Accessibility and Adapted
Sports (Reatech 2014) in April. With a long history
of engagement in the promotion the social inclusion
of disabled individuals, Bradesco took this
opportunity to present initiatives aimed at
facilitating the day-to-day activities and contribute
towards the autonomy of these individuals, such as
Virtual Vision, a new withdrawal service based on
verbal ATM commands, as well as Visual Mouse.
This solution received the “beyondBanking” award
also in April, granted by the Inter-American
Development Bank, under the equalBanking
category. The software is aimed at individuals with
motor disabilities in upper limbs which prevent
them from using a conventional computer mouse.
Based on a face image captured by a webcam, the
device allows users to control the mouse with head
and mouth movements.
Still in April, voice-activated telephone banking was
also added to Fone Fácil Bradesco throughout the
states of Rio Grande do Sul, Santa Catarina and
Paraná. All customers need to do is to simply say
the name of the service they would like to access,
and they can perform transactions through the
telephone without having to talk to service
representatives. Available services include
balance and statement checking, pre-approved
credit, requesting and unblocking checkbooks,
changing and registering four-digit passwords,
transfers between Bradesco accounts, payment of
bank slips, water, phone and gas bills, as well as
mobile recharging. Voice-activated telephone
banking services will be gradually expanded to
other Brazilian states.

Additional Information
Additional Information
Bradesco 95
Investments in Infrastructure, Information Technology and Telecommunications
The period was also marked by new challenges. In
May, Bradesco joined a partnership with Cielo and
Banco do Brasil to launch Stelo, an electronic
payment company that will facilitate and provide
even more security for both consumers and
retailers in e-commerce transactions. An exclusive
area for Bradesco Private customers was also
launched in May. Through the
bradescoprivatebank.com.br website, customers
can view account transactions and key financial
indexes, as well as view monthly and daily reports,
and access news in the financial market.
In June, Bradesco received the 5
th
“Excellence in
Technology” Award, promoted by HP to recognize
most outstanding projects. We won top prize in the
“Innovation” category, with our Private Cloud
project, and in the “Customer Relations” category,
for the Private Banking Emailing project. In the
same month, Bradesco won the “2014 Technology
Award” by The Banker magazine, under the “Social
Media” category, with the “F.Banking Bradesco –
Investments and Credit on Facebook” case. In
addition, Bradesco was one of the top winners of
the XVIII efinance Award, granted by the
Executivos Financeiros magazine, with 19 award-
winning cases.
As a prerequisite for its continuous expansion,
Bradesco invested R$ 2,211 million in
Infrastructure, Information Technology and
Telecommunications in the first half of 2014. The
total amount invested over recent years, including
infrastructure (facilities, restorations,
improvements, furniture and fixtures), can be found
below:

1H14 2013 2012 2011 2010
Infrastructure 305 501 718 1,087 716
Information Technology and Telecommunication 1,906 4,341 3,690 3,241 3,204
Total 2,211 4,842 4,408 4,328 3,920
R$ million


Additional Information
96 Report on Economic and Financial Analysis – June 2014
Risk Management

Risk management is highly strategic due to the
increasing complexity of services and products and
the globalization of the Organization’s business.
The dynamic aspect of markets forces Bradesco to
engage in continuous improvement of this activity
in pursuit of best practices. That has allowed
Bradesco to use its internal market risk models,
which were already in force, to calculate regulatory
capital, since January 2013.
The Organization controls risk management in an
integrated and independent manner, preserving
and valuing the Board's decisions, developing and
implementing methodologies, models, and
measurement and control tools. It also
provides training to employees form all


Organization levels, from business areas to the
Board of Directors.
The management process allows the risks to be
identified, measured, mitigated, monitored and
reported in a proactive manner, which is necessary
in view of the Organization’s complex financial
products and activity profile.
Detailed information on the risk management
process, capital and capital requirement, as well as
the Organization’s risk exposure, can be found in
the Risk Management Report on the Investor
Relations website, at www.bradescori.com.br.


Capital Management
The Capital Management structure aims to meet
the Organization’s strategic objectives through an
appropriate capital sufficiency planning. This
structure is comprised of Executive Committees
and one Non-Statutory Committee, which assist
the Board of Directors and Board of Executive
Officers in the decision-making process.
In addition to the Committee structure, the
Organization has a department responsible for the
capital management centralization, named Capital
Management and Internal Capital Adequacy
Assessment Process (ICAAP), subordinated to the
Department of Planning, Budget and Control,
which acts jointly with the Integrated Risk Control
Department, associated companies, business
areas and the Organization’s supporting areas.
The capital plan is devised on an annual basis and
approved by the Board of Executive Officers and
Board of Directors. It is also aligned with the
strategic plan and encompasses a prospective
outlook of at least three years. The process of
developing this plan considers threats and
opportunities, market share and development
goals, capital requirement projections based on
risks, as well as capital held by the Organization.
These projections are constantly monitored and
controlled by the capital management area.
With the implementation of the capital
management structure, an internal process was
established to assess capital adequacy (ICAAP),
which provides conditions to assess capital
sufficiency in accordance with the base and stress
scenarios. Capital adequacy and sufficiency
information represent essential tools to manage
and support the decision-making process.
Additional information on the capital management
structure is available in the Risk Management
Report – Pillar 3 and the 2013 Annual Report, on
the Investor Relations website:
www.bradescori.com.br.

Additional Information
Additional Information

Bradesco 97

Capital Adequacy Ratio

The implementation of the new capital structure in
Brazil began in October 2013. Through the CMN
Resolution N
o
4192/13, Bacen provided a new
methodology to assess Capital, replacing CMN
Resolution N
o
3444/07.
Considering that such methodology entails the
introduction of new adjustments, we have adapted
the historical series, stated in periods, for the
transition from Basel II to Basel III.
It is important to note that indexes published by
September 2013 were kept, but cannot be
compared due to the current resolution’s criteria.
In June 2014, the Capital amounted to R$ 94,090
million, against risk-weighted assets totaling
R$ 596,457 million. The Capital Adequacy Ratio
was virtually stable compared to the previous
quarter, going from 15.7% in March 2014 to 15.8%
in June 2014, mainly due to: (i) the increase in
Shareholders’ Equity due to greater results in the
quarter; and partially offset by: (ii) reduced
subordinated debts eligible to Tier II Capital, as per
the criteria set out in the CMN Resolution
N
o
4192/13.
R$ million
Jun14 Mar14 Dec13 Sept13 Jun13 Mar13 Dec12 Sept12
Capital 94,090 92,235 95,804 93,064 92,629 96,721 96,933 91,149
Tier I 71,892 69,934 70,808 71,830 69,868 67,980 66,066 64,157
Common Equity 71,892 69,934 70,808 71,830 69,868 67,980 66,066 64,157
Shareholders' Equity 76,800 73,326 70,940 67,033 66,028 69,442 70,047 66,047
Prudential Adjustments provided for in CMN Resolution 4192/13
(2)
(4,908) (3,392) (132) - - - - -
Adjustments Provided for in CMN Resolution 3444/07 - - - 4,797 3,840 (1,462) (3,981) (1,890)
Tier II 22,198 22,301 24,996 21,234 22,761 28,741 30,867 26,992
Mark-to-Market Adjustments
- - -
(4,508) (3,593) 1,732 4,229 2,150
Subordinated Debt
(3)
22,198 22,301 24,996
25,741 26,354 27,009 26,638 24,842
Risk-Weighted Assets (RWA) 596,457 585,991 576,777 566,797 603,541 621,030 600,520 571,377
Credit Risk 548,600 534,885 526,108 482,336 479,217 494,015 503,136 492,845
Operating Risk 29,853 29,853 23,335 33,100 30,494 30,494 31,197 31,197
Market Risk 18,004 21,253 27,334 51,361 93,831 96,522 66,188 47,335
Total Ratio
(4)
15.8% 15.7% 16.6% 16.4% 15.4% 15.6% 16.1% 16.0%
Tier I Capital 12.1% 11.9% 12.3% 12.7% 11.6% 11.0% 11.0% 11.3%
Common Equity 12.1% 11.9% 12.3% - - - - -
Tier II Capital 3.7% 3.8% 4.3% 3.7% 3.8% 4.6% 5.1% 4.7%
Calculation Basis
Basel II
Economic-Financial Consolidated
Basel III (1)
Financial Consolidated
(1) Since October 2013, capital is calculated as per CMN Resolution N
o
4192/13, which establishes that calculation is based on the “Financial
Consolidated” by December 2014 and “Prudential Consolidated” as of January 2015;
(2) The prudential adjustments are progressive deductions that are already being applied on the main capital and will follow the implementation
schedule, as provided by CMN Resolution N
o
4192/13. The impact of these adjustments in the Main Capital deduction was 0% in 2013, and will be
20% in 2014, 40% in 2015, 60% in 2016, 80% in 2017 and 100% in 2018;
(3) In addition, it should be noted that, from the total amount of subordinated debt, R$ 22,198 million will be used to compose the Tier II of the
Capital Adequacy Ratio, calculated as per CMN Resolution N
o
4192/13 (including amendments thereof), effective as of October 2013; and
(4) Since October 2013, the Capital Adequacy Ratio calculation follows regulatory guidelines set forth in CMN Resolutions N
o
4192/13 and 4193/13.

Additional Information
98 Report on Economic and Financial Analysis – June 2014
Market Disclosure
20-F Form
Since we hold common and preferred ADRs on the
New York Stock Exchange (NYSE), we develop
and publish the 20-F Form on an annual basis. On
April 30, 2014, we filed this document at the
Securities and Exchange Commission (SEC)
regarding the financial year ended on December
31,
2013, along with due accounting statements
developed in accordance with the International
Financial Reporting Standards (IFRS).
The document is available on our
Investor Relations website:
www.bradescori.com.br > Reports and Worksheets
> SEC Reports > 20-F Reports.

Reference Form
In compliance with the CVM Instruction N
o
480/09,
we submitted the Reference Form to the CVM
[Brazilian Securities and Exchange Commission]
on May 30, 2014. This document is developed on
an annual basis and reviewed in case of
amendments, as set out in Art. 24 of the
aforementioned Instruction. In addition to financial
statements, the document presents other risk
factors of the Organization, providing information
operations and controllers, directors’ comments on
results and financial position, among other relevant
issues.
The document is available on our
Investor Relations website:
www.bradescori.com.br > Reports and Worksheets
> CVM Reports.



5
Management, Preparation
and Disclosure of the
Report on Economic and
Financial Analysis and the
Consolidated Financial
Statements of Bradesco
Organization
8
Independent Auditors' Report
Independent Auditors’ Report


100 Report on Economic and Financial Analysis – June 2014

Independent Reasonable Assurance Report on the supplementary accounting information included
within the Economic and Financial Analysis Report

To
The Directors of
Banco Bradesco S.A.
Osasco - SP


Introduction

We were engaged by Banco Bradesco S.A. ("Bradesco") to report on the supplementary accounting
information of Banco Bradesco S.A. for the semester ended as at June 30, 2014, in the form of reasonable
assurance conclusion that based on our work, described within this report, the supplementary accounting
information included within the Economic and Financial Analysis Report is presented, in all material respects,
based on the information referred to in the “Criteria for preparing the supplementary accounting information”
paragraph.

Responsibilities of the Management of Bradesco

Management is responsible for preparing and adequately presenting the supplementary accounting
information included within the Economic and Financial Analysis Report based on the criteria for the
preparation of the supplementary accounting information described below, and for other information contained
within this report, as well as the design, implementation and maintenance of internal controls that management
determines are necessary to allow for such information that is free from material misstatement, whether due
to fraud or error.

Independent Auditor´s Responsibility

Our responsibility is to examine the supplementary accounting information included within the Economic and
Financial Analysis Report prepared by Bradesco and to report thereon in the form of a reasonable assurance
conclusion based on the evidence obtained. We conducted our engagement in accordance with the NBC TO
3000 - Assurance Engagement Other than Audit and Review (ISAE 3000). That standard requires that we
comply with ethical requirements, including independence requirements, and plan and perform our procedures
to obtain reasonable assurance about whether the supplementary accounting information included within the
Economic and Financial Analysis Report is presented, in all material respects, to the information referred to in
the “Criteria for preparing the supplementary accounting information” paragraph.

The procedures selected were based on our judgment, including the assessment of risks of material
misstatement in the supplementary accounting information of Banco Bradesco S.A. whether due to fraud or
error; however, this does not include the search and identification of fraud or error.

In making those risk assessments, we have considered internal controls relevant to the preparation and
presentation of supplementary accounting information in order to design assurance procedures that are
appropriate in the circumstances, but not for the purposes of expressing a conclusion as to the effectiveness
of Bradesco´s internal control over the preparation and presentation of the supplementary accounting
information. Our engagement also includes the assessment of the appropriateness of the reasonableness of
the supplementary accounting information, the suitability of the criteria used by Bradesco in preparing the
supplementary accounting information within the Economic and Financial Analysis Report in the circumstances
of the engagement, evaluating the appropriateness of the procedures used in the preparation of the
supplementary accounting information and the reasonableness of estimates made by Bradesco and evaluating
the overall presentation of the supplementary accounting information. Reasonable assurance is less than
absolute assurance.

Our conclusion does not contemplate aspects related to any prospective information contained within the
Economic and Financial Analysis Report, nor offers any guarantee if the assumptions used by Management
provide a reasonable basis for the projections presented. Therefore, our report does not offer any type of
assurance on the scope of future information (such as goals, expectations and ambitions) and descriptive
information that is subject to subjective assessment.

Independent Auditors’ Report
Bradesco 101
Independent Reasonable Assurance Report on the supplementary accounting information included
within the Economic and Financial Analysis Report


Criteria for preparing the supplementary accounting information

The supplementary accounting information disclosed within the Economic and Financial Analysis Report, for
the semester ended June 30, 2014 has been prepared by the Management of Bradesco, based on the
information contained in the consolidated financial statements on June 30, 2014 and the criteria described
within the Economic and Financial Analysis Report, in order to facilitate additional analysis, without, however,
being part of the consolidated financial statements disclosed on that date.

Conclusion

Our conclusion has been formed on the basis of, and is limited to, the matters outlined in this report. We believe
that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. In our
opinion, the supplementary accounting information included within the Economic and Financial Analysis Report
is presented, in all material respects, in accordance with the information referred to in the “Criteria for preparing
the supplementary accounting information” paragraph.




Osasco, July 30, 2014




Original report in Portuguese signed by
KPMG Auditores Independentes
CRC 2SP028567/0-IF SP

Cláudio Rogélio Sertório
Contador CRC 1SP212059/O-0




Independent Auditors’ Report
102 Report on Economic and Financial Analysis – June 2014


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Financial Statements, Independent Auditors'
Report, Summary of the Audit Committee´s
Report and Fiscal Council´s Report
6
Management, Preparation
and Disclosure of the
Report on Economic and
Financial Analysis and the
Consolidated Financial
Statements of Bradesco
Organization
8
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Management Report

104 Report on Economic and Financial Analysis – June 2014
Dear Shareholders,

We hereby present the consolidated financial
statements of Banco Bradesco S.A. for the first half of
2014, prepared in accordance with the accounting
practices adopted in Brazil and applicable to institutions
authorized to operate by the Brazilian Central Bank.

The signs of the upturn of the U.S. economy, the
stabilization of the rate of Chinese expansion, and the
adoption of new monetary stimulus in Europe are
positive vectors for the recovery of the world economy in
the coming quarters. These external stimuli should work
in Brazil’s favor and leverage domestic actions that will
help to raise the level of confidence of economic agents.
Among these actions, highlight goes to the continuous
commitment to consistent macroeconomic policies and
institutional advances that accelerate the country’s
growth.

Events that marked the period at the Bradesco
Organization include:

? on April 17 Bradesco and Banco do Brasil
launched Stelo S.A., a payment solutions company
that will manage, operate and explore the payment
facilitator segment for e-commerce and digital
portfolio business; on May 14 they formed LIVELO
S.A., whose purpose will be to explore businesses
related to coalition loyalty program, allowing the
client to accumulate and redeem points in various
partners;

? on May 27 the second Fluvial Service Station was
inaugurated aboard the ship Voyager V, in the
Solimões River in the Amazon. The new ship will
serve approximately 50 communities and 11 cities,
covering a stretch of around 1,600 kilometers
between Manaus and Tabatinga and bringing
banking services that make life easier at these
riverside communities;

? on July 17, Bradesco, along with the leading
retail banks in Brazil, signed a new Shareholders'
Agreement from TecBan – Tecnologia Bancária
S.A., which expects, in approximately 4 years, the
consolidation of its external Automated Service
Terminal networks by Banco24Horas; and

? on July 28 Bradesco formalized a strategic
partnership with IBM Brasil - Indústria Máquinas
e Serviços Ltda., which will provide hardware and
software support and maintenance activities,
currently provided by Scopus Tecnologia Ltda. IBM
will take over the operational structure from Scopus,
and all support and maintenance contracts signed
between Scopus and its other clients.

1. Results for the Period

In the first half of 2014, Bradesco’s Net Income was
R$ 7.221 billion, corresponding to R$ 1.72 per share and
profitability of 20.5% over the average Shareholders’
Equity
(*)
. The annual return on Average Assets was
1.6%.

In the same period, taxes and contributions, including
social security contributions, paid or provisioned,
amounted to R$ 14.116 billion, of which R$ 5.156 billion
related to taxes withheld and collected from third parties,
and R$ 8.960 billion related to activities developed by
the Bradesco Organization, corresponding to 124.1% of
Net Income.

In the first half of the year, R$ 2.396 billion were destined
to shareholders as Interest on Equity and Dividends, of
which R$ 497.377 million were paid in monthly and
interim installments and R$ 1.899 billion were
provisioned. Interim Dividends, paid on 7.18.2014,
represent approximately 11.8 times the amount of the
Interest paid monthly (net of withholding income tax).

2. Capital and Reserves

At the end of the first half of 2014, the Paid-in Capital
came to R$ 38.100 billion. Together with Equity
Reserves of R$ 38.700 billion, Shareholders’ Equity
came to R$ 76.800 billion, 16.3% up on the same period
in the previous year, and equivalent to a book value of
R$ 18.31 per share.

Based on its stock price, Bradesco’s Market
Capitalization came to R$ 134.861 billion on June 30,
2014, equivalent to 1.8 times the Shareholders’ Equity.

The Administered Shareholders' Equity is equivalent to
8.3% of the Consolidated Assets, which totaled
R$ 931.132 billion, a 3.8% growth compared to June
2013. Thus, the Capital Adequacy Ratio reached 15.8%,
substantially higher than the 11% minimum established
by National Monetary Council Resolution n
o
4193/13, in
conformity with the Basel Committee. At the end of the
first half of 2014, the fixed asset ratio in relation to the
Consolidated Reference Assets was 46.7% in the
consolidated financial result, and 13.2% in the
consolidated economic and financial result, well within
the 50% limit.

In compliance with Article 8 of Brazilian Central Bank
Circular Letter n
o
3068/01, Bradesco declares that it has
the financial capacity and the intention of holding to
maturity those securities classified under “held-to-
maturity securities”.

3. Funding

On June 30, 2014, total funding raised and managed by
the Bradesco Organization totaled R$ 1.305 trillion,
5.8% more than in the same period in the previous year,
broken down as follows:

R$ 468.881 billion in demand deposits, time deposits,
interbank deposits, savings accounts and
federal funds purchased and securities
sold under agreements to repurchase;

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Management Report

Bradesco 105
R$ 462.246 billion in assets under management,
comprising investment funds, managed
portfolios and third-party fund quotas, an
8.2% increase;

R$ 201.117 billion in the exchange portfolio,
borrowings and onlendings in Brazil,
working capital, tax payments and
collection and related charges, funds from
issuance of securities in Brazil, and
subordinated debt in Brazil, a 20.9%
expansion;

R$ 142.732 billion in technical reserves for insurance,
pension plans and capitalization bonds, up
by 8.3%; and

R$ 29.714 billion in foreign funding, through public
and private issues, subordinated debt
abroad, securitization of future financial
flows and borrowings and onlendings
abroad, equivalent to US$ 13.491 billion.

4. Loan Operations

At the end of the first half of 2014, the balance of the
consolidated credit operations at the concept expanded,
totaled R$ 435.231 billion, an increase of 8.1% over the
same period in 2013, including:

R$ 6.415 billion in advances on exchange contracts,
giving a total export financing portfolio of
US$ 12.786 billion;

US$ 3.437 billion in import financing denominated in
foreign currency;

R$ 4.969 billion in leasing operations;

R$ 23.341 billion in rural lending;

R$ 94.463 billion in consumer financing, including
R$ 15.220 billion in credit card
receivables;

R$ 69.875 billion in sureties and guarantees; and

R$ 34.576 billion in operations involving the
onlending of foreign and domestic funds,
originating mainly from the Brazilian
Development Bank (BNDES), as one of its
main onlending agents.

In the first half of 2014, the Bradesco Organization
allocated a total of R$ 7.234 billion in Real Estate Loan
resources for the construction and acquisition of 31,177
homes.

The consolidated balance of allowance for loan losses
reached R$ 21.791 billion, equivalent to 6.6% of the total
volume of loan operations, with a R$ 4.009 billion
surplus provision in relation to the minimum required by
the Central Bank.
5. Bradesco Service Network

Present in all regions of the country and in various
locations abroad, the Bradesco Organization Service
Network had 59,236 points at the end of the first half of
2014, available to clients and users. It also had 31,509
ATMs from the Bradesco Dia & Noite Automated Service
Network, of which 31,031 were also operative during
weekends and holidays, in addition to 16,103 ATMs from
the Banco24Horas Network, available to customers for
cash withdrawals, balance verification, bank statements,
loan request, payments and transfers between
accounts. In the payroll-deductible loan segment, the
network had 1,949 Bradesco Promotora correspondent
bank branches, and in the vehicle segment, it had
12,790 Bradesco Financiamentos points of sale:

8,177 Branches and PAs (Service Branches) in
Brazil (Branches: Bradesco 4,655, Banco
Bradesco Financiamentos 19, Banco
Bradesco BBI 1, Banco Bradesco BERJ 1,
Banco Bradesco Cartões 3, and Banco
Alvorada 1; and PAs: 3,497);

3 Overseas Branches, 1 in New York and 2 in
Grand Cayman;

11 Overseas Subsidiaries (Banco Bradesco
Argentina S.A. in Buenos Aires; Banco
Bradesco Europa S.A. in Luxembourg;
Bradesco North America LLC, Bradesco
Securities, Inc., and BRAM US LLC in New
York; Bradesco Securities UK Limited in
London, Bradesco Securities Hong Kong
Limited and Bradesco Trade Services Limited
in Hong Kong; Bradesco Services Co. Ltd., in
Tokyo; Cidade Capital Markets Ltd. in Grand
Cayman; and Bradescard Mexico, Sociedad
de Responsabilidad Limitada in Mexico);

48,186 Bradesco Expresso service points;

1,175 PAEs – in-company electronic service
branches; and

1,684 External terminals in the Bradesco Dia & Noite
network and 12,023 ATMs in the
Banco24Horas network, with 868 terminals
shared by both networks.

6. Banco Bradesco BBI

Bradesco BBI, the Bradesco Organization’s investment
bank, advises customers on share issues, merger and
acquisition transactions and the structuring and
distribution of debt instruments, including debentures,
promissory notes, CRIs, mortgage-backed investment
funds, receivables-backed investment funds (FIDCs)
and bonds in Brazil and abroad, in addition to structured
financing operations for companies and project finance.
Its transaction volume in the first half of 2014 was over
R$ 93.028 billion.
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Management Report

106 Report on Economic and Financial Analysis – June 2014
7. Grupo Bradesco Seguros

On June 30, 2014, Grupo Bradesco Seguros, one of the
leaders in the Insurance, Capitalization Bond and
Pension Plan segments, posted Net Income of R$ 2.112
billion and Shareholders’ Equity of R$ 18.813 billion. Net
written insurance premiums, pension contributions and
capitalization bond income came to R$ 25.442 billion,
5.2% up on the same period in 2013.

8. Corporate Governance

With its shares traded on stock exchanges in Brazil since
1946, Bradesco operates in the American capital market
since 1997, initially trading Level I ADRs backed by
preferred shares, and starting in 2001 and 2012, trading
Level II ADRs backed by preferred and common shares,
respectively. Bradesco also trades GDRs in the
European market (Latibex) since 2001.

Bradesco’s management is formed by the Board of
Directors and Board of Executive Officers. Board
members are elected by the Annual Shareholders'
Meeting, who elect the members of the Board of
Executive Officers. The duties of the Chairman of the
Board of Directors and the Chief Executive Officer are
different.

Installed annually since 2002, the Fiscal Council is
composed of 5 sitting members and 5 deputy members.
Two sitting members and their respective deputy
members are chosen by preferred and common minority
shareholders. These members were elected at the
Meeting held on March 10, 2014, which established their
mandate until the next ASM in 2015.

In search of continuous improvement of its governance
practices, since 2001 Bradesco has voluntarily observed
BM&FBOVESPA’s Level 1 Corporate Governance, and
since 2011 it has observed the Code of Self-Regulation
and Best Practices for Publicly Held Companies, issued
by the Brazilian Association of Publicly Held Companies
(ABRASCA), adopting the "apply or explain" practice.
Bradesco was rated AA+ (Excellent Corporate
Governance Practices) by Austin Rating.

According to the Securities and Exchange Commission
Instruction n
o
381/03, in the first half of 2014 the
Bradesco Organization did not hire or have services
provided by KPMG Auditores Independentes not related
to external audit, at no more than 5% of the total fees
related to external audit services. Other services
provided by the external auditors included diagnosing
the system and compiling IT information and training.
The Bank’s policy is in line with the principles of
preserving the auditors’ independence, which are based
on generally accepted international criteria, i.e. the
auditors should not audit their own work, perform
managerial duties for their clients or promote their
customers’ interests.
8.1. Internal Controls

The effectiveness of the Organization’s internal controls
is supported by trained professionals, well-defined and
implemented processes, and technology compatible
with the business needs.
The Compliance and Internal Controls Policy and the
Internal Control System Standards are aligned with the
main control frameworks, such as COSO – Committee
of Sponsoring Organizations of the Treadway
Commission and COBIT - Control Objectives for
Information and Related Technology, which cover
aspects related to Business and Information
Technology, respectively.

The existence, effectiveness and implementation of
controls that ensure acceptable risk levels in the
Organization's processes are certified by the
Department of Integrated Risk Control - Internal Control
department, and the results are reported to the Audit
Committee and to the Compliance and Internal Controls
Committee, as well as to the Board of Directors, aiming
to provide reasonable assurance regarding the proper
conduct of business and the achievement of the
established goals, in accordance with applicable
external laws and regulations, policies, internal rules and
procedures, codes of conduct and self-regulation.

Preventing and Combating Corruption and Money
Laundering and the Financing of Terrorism

Bradesco maintains specific policies, standards,
procedures and systems to prevent and/or detect the
use of its structure, products and services for the
purposes of money laundering and the financing of
terrorism.

Additionally, the Bank also invests in training employees
through programs in various formats, such as booklets,
videos, face-to-face and distance learning courses, and
face-to-face lectures designed specifically to cover the
areas in which they are required.

The Program for Preventing and Combating Corruption
and Money Laundering and the Financing of Terrorism
is supported by the Executive Committee for Preventing
and Combating Corruption and Money Laundering and
the Financing of Terrorism, which evaluates the work
and the need to align procedures to the rules established
by Regulatory Agencies, and to national and
international best practices.

Additionally, Bradesco adopts a formal and effective
process for preventing and combating corruption and
bribery, supported by the Code of Ethical Conduct and
by the Corporate Anti-Corruption Policy. Cultural
adaptation is accomplished through institutional
communication and training programs, providing an
effective monitoring of risks and controls. Bradesco also
has a complaint channel, whose actions configured as
violations are subject to applicable disciplinary
measures, regardless of hierarchical level, and without
prejudice to appropriate legal penalties.

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Management Report

Bradesco 107
Independent Validation of Management Models and
Risk and Capital Measurement

Bradesco uses internal models to manage and measure
risks and capital, developed based on statistical data or
expert knowledge, that support and facilitate the
structuring of critical issues, and provide quick and
standardized decisions.

In order to identify, mitigate and manage the risks, the
models are validated independently through rigorous
tests, whose results - which address aspects related to
processes adaptation, governance and construction of
models and their premises - are reported to managers,
Internal Audit, to the Compliance and Internal Control
Committee, and to the Integrated Risk Management and
Capital Allocation Committee (COGIRAC).

Information Security

Information Security at the Bradesco Organization
consists of a set of controls represented by procedures,
processes, organizational structures, policies and
regulations, and information technology solutions,
aiming to protect the information in regards to
confidentiality, integrity and availability. Bradesco’s
Corporate Policies and Regulations on Information
Security describe the basis for the Organization’s
Information Security Management System, which aim to
protect the information assets.

Developed based on best practices and international
standards regarding Information Security, the Corporate
Awareness and Education Program and the Policy and
Regulations focus on the absolute protection of
customer data and strategic information owned by the
Organization.

The Safety Committees and the Executive Committee
for Corporate Security meet periodically to assess and
approve guidelines, measures and instructions to
support processes and procedures related to
Information Security at the Organization.

8.2. Transparency and Information Disclosure
Policies

In the first half of 2014, Bradesco promoted 110 events
involving analysts, 47 of which were held in Brazil and
63 abroad, as well as 109 conference calls. One of these
events was the first Bradesco Insurance Day, which was
attended by Bradesco’s Board of Executive Officers,
serving 67 Capital Market analysts. The events also
included 2 videochats targeted to individual investors,
held with Bradesco’s Investor Relations Director, and 4
result-related teleconferences targeted to institutional
investors.
The Investor Relations website – www.bradesco.com.br/ri
– provides information related to the Bradesco
Organization, such as its profile, history, ownership
structure, management reports, financial results, recent
acquisitions, APIMEC meetings, Economic and
Financial Analysis Report, Annual Report, in addition to
other information related to the financial market.

9. Integrated Risk Control

9.1. Risk Management

The risk management activity is highly strategic and
integrated, allowing risks to proactively identified,
measured, mitigated, monitored and reported, due to the
growing complexity of services and products, and the
globalization of the Organization’s business. This activity
must be constantly enhanced to keep pace with the
dynamism of the markets and the pursuit of best
practices, exemplified by the fact that Bradesco became
the first and only Brazilian bank authorized by the
Central Bank to use its own internally-developed market
risk management models to calculate regulatory capital
since January 2013.

The Organization conducts an integrated and
independent corporate control of the risks, preserves
and recognizes the environment where joint decisions
are taken, develops and implements methodologies,
models and tools for measurement and control,
supported in a structure of Committees that respond to
the Board of Directors, including the Audit Committee
and Committees under the Board of Executive Officers.
It also provides ongoing training on risks to employees
from all Organization levels, from the business areas to
the Board of Directors.

9.2. Credit Risk

Credit risk management is a continuous and evolving
process of mapping, development, assessment and
diagnosis through the use of models, instruments and
procedures that require a high degree of discipline and
control during the analysis of operations to preserve the
integrity and autonomy of the processes. It includes all
aspects related to the lending process, concentration,
guarantee requirement, terms, among others.

The Organization continuously maps all activities that
can generate exposure to credit risk, with their
respective ratings related to probability and magnitude,
as well as the identification of their managers,
measurement and mitigation plans. Control is held in a
corporate, centralized and standardized manner.

9.3. Market Risk

Market risk is carefully identified, measured, mitigated,
controlled and reported. The Organization’s exposure to
market risk profile is in line with the guidelines
established by the governance process, with limits
monitored independently on a timely basis.

All activities exposed to market risks are controlled for
all of the Organization’s companies in a corporate and
centralized manner.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Management Report

108 Report on Economic and Financial Analysis – June 2014
9.4. Liquidity Risk

The Market and Liquidity Risk Management Policy and
the resulting rules and procedures define the minimum
levels to be observed, taking into account stress
scenarios, and also determine which kind of financial
instruments must resources be applied, and the
operational strategy to be used, if needed.

The liquidity risk process consists of daily monitoring of
the composition of available resources, compliance with
the minimum level of liquidity and contingency plans for
stress situations. The control and monitoring of the
positions are held in a centralized manner.

9.5. Operational Risk

Operational Risk is controlled in a centralized manner
through identification, measurement, mitigation plans
and monitoring, on a consolidated basis and for each of
the Organization’s companies.

Among plans to mitigate operational risk, the most
important is managing the Organization’s business
continuity, which consists of formal plans to be adopted
during moments of crisis to guarantee the recovery and
continuation of business as well as preventing loss.

10. Human Resources

Constantly striving to improve the quality of care and the
level of services provided, Bradesco’s Corporate
University (UniBrad) upholds its purpose of promoting
continuing education and enhancing the development
and training of its staff. With that, employees have
access to an integrated array of learning solutions that
promote skill development aligned to the Organization's
business. A total of 1,921 courses were held in the first
half of 2014, with 523,807 participations.

In the same period, the benefits aimed at improving their
safety, well-being and overall quality of life, as well as
that of their dependents, covered 203,942 individuals.

11. Sustainability at the Bradesco Organization

Since its origins, Bradesco Organization has been fully
committed to Brazil’s social and economic development.
It constantly seeks to attain sustainability in
management, businesses and daily activities. Under
such purpose, the Organization strives to ensure
continuous and sustainable growth, committed to the
public with whom it engages, as well as the communities
and environments in which it operates. It fully complies
with best global sustainability and corporate governance
practices, particularly: Global Compact, PRI (Principles
for Responsible Investment), Equator Principles, Carbon
Disclosure Project and Green Protocol.

At the Bradesco Organization, sustainability actions,
strategies and guidelines are guided by best corporate
governance practices. Its main activities focus on
banking inclusion, social and environmental variables for
loan approvals and product offerings, based on social
and environmental aspects. Regarding responsible
management and engagement with stakeholders, we
highlight activities geared towards valuing professionals,
improving the workplace, client relations, managing
suppliers and adopting environmental management
practices. We also highlight the Organization’s role in
Brazilian society as one of its leading social investors,
supporting education, environment, culture and athletic
programs.

For more information about Bradesco’s initiatives visit
www.bancodoplaneta.com.br or www.bradesco.com.br/ri

Fundação Bradesco

Fundação Bradesco, the main focus of the
Organization’s social initiatives, holds social and
educational programs with 40 schools located in all
Brazilian states, including the Federal District, mostly in
socially and economically underprivileged regions.

The budget for this year is forecast at R$ 523.434
million, R$ 71.095 million of which is intended to
restructuring high school education through classroom
expansion works, and R$ 452.339 million will enable
offering free quality education to: a) 105,672 students
enrolled in its schools in the following levels: basic
education (kindergarten to high school) and vocational
training - high school, youth and adult education; and
preliminary and continuing vocational training, which
focuses on creating jobs and income; b) 370 thousand
students who will complete at least one of the distance-
learning courses (EaD) available on the e-learning
portal; and c) 21,527 beneficiaries in partnership
projects and initiatives, including the Digital Inclusion
Centers (CIDs), the Educa+Ação program and
technology courses (Educar and Aprender). The
approximately 45 thousand students enrolled in the
basic education system also receive uniforms, school
supplies, meals, and medical and dental assistance free
of charge.

The "National Day of Voluntary Action", celebrated on
5.17.2014 for the 12
th
year running, gathered 19,739
volunteers in 66 different locations throughout Brazil,
including Fundação Bradesco schools and service
points near the school units. It provided a total of
275,789 services related to education, health, leisure,
sports and the environment, displaying once more an
example of citizenship and solidarity.

Bradesco Sports and Education Program

The Bradesco Sports and Education Program in the city
of Osasco, SP offers Training Centers and Experts to
teach women's volleyball and basketball. The activities
take place at its Sports Development Center, at
Fundação Bradesco schools, municipal Sports Centers,
and private schools. Currently, about 2 thousand
children and young people from 8 to 20 years old are
benefited, reaffirming the social commitment and the
recognition of talent and full exercise of citizenship, with
education, sport and health actions.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Management Report

Bradesco 109
12. Awards

Rankings – the following acknowledgments were made
to Bradesco during the period:

? Most valuable banking sector brand in Latin
America and 20
th
in the global ranking, according to
a survey conducted by the consulting firm Brand
Finance and The Banker magazine;

? Brazil’s Most Valuable Bank Brand, according to
rankings compiled by the magazine IstoÉ Dinheiro
and the consulting firm BrandAnalytics/Milward
Brown Optimor;

? “Best Brazilian Bank” for the third consecutive
year, acknowledged by Euromoney Awards for
Excellence. In addition, Bradesco BBI was chosen
as the Best Brazilian Investment Bank at the same
awards, granted by the British magazine Euromoney;

? Featured for the 4
th
consecutive time in The 35
Best Companies to Start your Career, from Guia
Você S/A, in a survey conducted by the magazine
Você S/A in partnership with Fundação Instituto de
Administração (FIA) and Cia. de Talentos. The list
also includes Tempo Serviços, Bradesco
Organization’s credit card administrator;

? One of the 100 Best Companies in IDHO -
Organizational Human Development Indicator, in
a study developed by the magazine Gestão RH. This
year, Bradesco was featured in the Governance
dimension, being the only Bank to appear in the
ranking of the 10 Best Companies in IDHO;

? The only Brazilian Bank ranked among the “Best
Companies to Work for in Latin America”, under
the “Companies with over 500 employees” category,
according to the survey conducted by the consulting
firm Great Place to Work;

? Bradesco Private Bank was recognized as the
best of Brazil under the “Specialized Services”
category, at the special edition Private Banking
Global Survey 2014 of Euromoney Magazine;

? Bradesco Cartões, company of the year at the XV
Modern Consumer Award for Excellence in
Customer Service, recognized by the quality of
services offered to consumers;
? BRAM-Bradesco Asset Management received the
highest management quality rating - 1-AMP (very
strong) - from Standard & Poor's. It was also voted
Top Management 2014 Variable Income, in the
ranking published by the magazine ValorInveste,
according to an evaluation from Standard & Poor's;
and

? eFinance 2014 Award, from the magazine
Executivos Financeiros, winning with cases in
various categories.

Ratings – In the first half of 2014, among the evaluation
indexes assigned to Brazilian Banks by national and
international Agencies and Entities, we have recorded
for Bradesco that:

? credit rating agencies Moody's Investors Service and
Austin Rating affirmed all ratings of the Organization;
and

? credit rating agency Standard & Poor's downgraded
the ratings on a global scale for issuer credit in local
and foreign currency from ‘BBB/A2’ to ‘BBB-/A3’, due
to relegation of the sovereign rating.

13. Acknowledgments

The results achieved in the first half of 2014 reflect the
precision and the consistency of Bradesco
Organization’s expansion strategy, grounded on quality
and efficiency, always in line with the new demands of
the markets and the economy as a whole. Through these
advancements, we wish to thank our shareholders and
customers for their trust and support, and to thank our
employees and other associates for their dedication and
commitment.








Cidade de Deus, July 30, 2014

Board of Directors
Board of Executive Officers

(*)
Excluding mark-to-market effect of Securities Available for sale
recorded under Shareholders’ Equity.

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Consolidated Statement of Financial Position – In thousands of Reais

110 Report on Economic and Financial Analysis – June 2014
Assets
2014 2013
June March June
Current assets 600,639,035 597,002,155 601,883,754
Cash and due from banks (Note 6) 11,534,602 12,110,067 16,179,775
Interbank investments (Notes 3d and 7) 136,983,854 126,320,146 146,391,618
Investments in federal funds sold and securities borrowed under agreements to resell 125,321,856 115,741,455 139,789,912
Interbank investments 11,675,372 10,618,597 6,602,636
Allowance for losses (13,374) (39,906) (930)
Securities and derivative financial instruments (Notes 3e, 3f, 8 and 32b) 199,469,993 193,114,514 197,622,811
Own portfolio 176,316,096 160,506,063 165,330,778
Subject to repurchase agreements 16,222,348 26,121,894 27,292,429
Derivative financial instruments (Notes 3f, 8e II and 32b) 4,733,427 3,778,562 2,374,661
Underlying guarantees provided 1,944,322 2,458,066 1,784,978
Securities subject to unrestricted repurchase agreements 253,800 249,929 839,965
Interbank accounts 55,195,430 60,599,096 50,930,612
Unsettled payments and receipts 1,557,986 1,575,879 608,839
Reserve requirement (Note 9):
- Reserve requirement - Brazilian Central Bank 53,501,826 58,919,160 50,247,046
- National treasury - rural loans - - 578
- SFH 4,249 5,961 3,025
Correspondent banks 131,369 98,096 71,124
Interdepartmental accounts 320,342 548,957 649,691
Internal transfer of funds 320,342 548,957 649,691
Loans (Notes 3g, 10 and 32b) 132,038,064 133,771,326 125,590,039
Loans:
- Public sector 31,779 42,639 106,606
- Private sector 145,639,263 146,955,377 138,529,404
Allowance for loan losses (Notes 3g, 10f, 10g and 10h) (13,632,978) (13,226,690) (13,045,971)
Leasing (Notes 2, 3g, 10 and 32b) 2,281,099 2,477,965 3,247,669
Leasing receivables:
- Private sector 4,615,232 4,989,529 6,418,871
Unearned income from leasing (2,103,807) (2,255,345) (2,825,360)
Allowance for leasing losses (Notes 3g, 10f, 10g and 10h) (230,326) (256,219) (345,842)
Other receivables 59,524,158 64,770,782 58,441,498
Receivables on sureties and guarantees honored (Note 10a-3) 30,304 31,862 22,539
Foreign exchange portfolio (Note 11a) 11,476,110 18,133,644 12,603,475
Receivables 603,653 731,351 747,051
Securities trading 830,940 997,323 4,180,999
Specific receivables 3,292 3,046 2,761
Insurance and reinsurance receivables and reinsurance assets – technical reserves 4,070,116 3,777,433 3,462,377
Sundry (Note 11b) 43,292,639 41,899,947 38,288,768
Allowance for loan losses (Notes 3g, 10f, 10g and 10h) (782,896) (803,824) (866,472)
Other assets (Note 12) 3,291,493 3,289,302 2,830,041
Other assets 1,660,960 1,565,634 1,293,444
Provision for losses (647,622) (603,368) (519,587)
Prepaid expenses (Notes 3i and 12b) 2,278,155 2,327,036 2,056,184
Long-term receivables 315,346,984 309,758,601 279,237,449
Interbank investments (Notes 3d and 7) 669,821 693,875 1,093,041
Interbank investments 669,821 693,875 1,093,041
The accompanying Notes are an integral part of these Financial Statements.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Consolidated Statement of Financial Position – In thousands of Reais

Bradesco 111
Assets
2014 2013
June March June
Securities and derivative financial instruments (Notes 3e, 3f, 8 and 32b) 133,730,405 128,855,866 111,404,163
Own portfolio 75,546,787 75,535,850 52,647,547
Subject to repurchase agreements 50,286,078 48,280,299 49,069,201
Derivative financial instruments (Notes 3f, 8e II and 32b) 1,000,075 594,395 862,972
Subject to the Brazilian Central Bank 19,008 2,694 47,224
Privatization currencies 62,237 63,052 69,604
Underlying guarantees provided 5,990,548 4,322,077 8,100,563
Securities subject to unrestricted repurchase agreements 825,672 57,499 607,052
Interbank accounts 599,801 591,868 569,016
Reserve requirement (Note 9):
- SFH 599,801 591,868 569,016
Loans (Notes 3g, 10 and 32b) 145,031,278 143,060,489 129,753,104
Loans:
- Public sector 1,919,401 2,069,028 75,531
- Private sector 145,510,575 143,554,018 136,614,551
Loans Related to Assignment 4,205,713 4,023,119 -
Allowance for loan losses (Notes 3g, 10f, 10g and 10h) (6,604,411) (6,585,676) (6,936,978)
Leasing (Notes 2, 3g, 10 and 32b) 2,301,181 2,368,402 2,810,710
Leasing receivables:
- Private sector 4,985,585 5,169,314 6,261,672
Unearned income from leasing (2,528,065) (2,632,691) (3,198,846)
Allowance for leasing losses (Notes 3g, 10f, 10g and 10h) (156,339) (168,221) (252,116)
Other receivables 31,400,852 32,537,264 31,949,379
Receivables 7,459 16,393 27,011
Securities trading 126,860 177,378 269,650
Sundry (Note 11b) 31,317,233 32,354,294 31,660,540
Allowance for loan losses (Notes 3g, 10f, 10g and 10h) (50,700) (10,801) (7,822)
Other assets (Note 12) 1,613,646 1,650,837 1,658,036
Prepaid expenses (Notes 3i and 12b) 1,613,646 1,650,837 1,658,036
Permanent assets 15,145,755 15,467,997 15,576,165
Investments (Notes 3j, 13 and 32b) 1,886,747 1,870,597 1,920,417
Equity in the earnings (losses) of unconsolidated companies - In Brazil 1,471,009 1,456,636 1,440,183
Other investments 689,466 687,804 754,227
Allowance for losses (273,728) (273,843) (273,993)
Premises and equipment (Notes 3k and 14) 4,578,907 4,596,795 4,464,008
Premises 1,463,321 1,449,649 1,342,235
Other assets 10,352,291 10,378,734 9,881,431
Accumulated depreciation (7,236,705) (7,231,588) (6,759,658)
Intangible assets (Notes 3l and 15) 8,680,101 9,000,605 9,191,740
Intangible assets 16,416,704 16,260,103 17,581,168
Accumulated amortization (7,736,603) (7,259,498) (8,389,428)
Total 931,131,774 922,228,753 896,697,368

The accompanying Notes are an integral part of these Financial Statements.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Consolidated Statement of Financial Position – In thousands of Reais

112 Report on Economic and Financial Analysis – June 2014
Liabilities
2014 2013
June March June
Current liabilities 645,826,729 633,058,763 610,203,074
Deposits (Notes 3n and 16a) 164,831,687 168,041,497 149,275,466
Demand Deposits 36,176,242 38,569,323 36,586,408
Savings Deposits 84,318,918 82,098,295 72,627,265
Interbank deposits 329,746 455,468 485,693
Time deposits (Notes 16a and 32b) 44,006,781 46,918,411 39,576,100
Federal funds purchased and securities sold under agreements to repurchase
(Notes 3n and 16b) 232,207,444 228,518,684 248,966,584
Own portfolio 108,296,248 114,875,410 117,565,530
Third-party portfolio 122,146,097 112,795,792 110,974,509
Unrestricted portfolio 1,765,099 847,482 20,426,545
Funds from issuance of securities (Notes 16c and 32b) 36,898,189 26,558,538 24,842,697
Mortgage and real estate notes, letters of credit and others 33,703,331 21,293,057 20,388,900
Securities issued abroad 3,043,455 5,138,381 4,453,797
Structured Operations Certificates 151,403 127,100 -
Interbank accounts 1,910,430 1,690,041 1,014,942
Correspondent banks 1,910,430 1,690,041 1,014,942
Interdepartmental accounts 3,762,883 3,653,373 2,777,590
Third-party funds in transit 3,762,883 3,653,373 2,777,590
Borrowing (Notes 17a and 32b) 12,870,253 14,695,954 10,050,917
Borrowing in Brazil - other institutions 5,686 5,738 3,776
Borrowing abroad 12,864,567 14,690,216 10,047,141
Onlending in Brazil - official institutions (Notes 17b and 32b) 11,860,115 11,794,019 11,570,961
National treasury 1,109 2,289 17,444
BNDES 3,261,698 3,129,109 3,744,213
CEF 16,388 18,863 20,900
FINAME 8,579,662 8,642,502 7,788,404
Other institutions 1,258 1,256 -
Onlending abroad (Notes 17b and 32b) 212,745 173,694 136,862
Onlending abroad 212,745 173,694 136,862
Derivative financial instruments (Notes 3f, 8e II and 32b) 3,985,513 3,197,880 2,368,516
Derivative financial instruments 3,985,513 3,197,880 2,368,516
Technical reserves for insurance, pension plans and capitalization bonds (Notes
3o and 21) 119,068,718 114,366,561 106,516,946
Other liabilities 58,218,752 60,368,522 52,681,593
Payment of taxes and other contributions 3,736,961 3,842,269 3,379,189
Foreign exchange portfolio (Note 11a) 5,551,655 11,995,335 5,601,398
Social and statutory 2,187,638 1,157,261 1,770,785
Tax and social security (Note 20a) 5,635,570 3,942,229 5,360,436
Securities trading 1,918,240 1,605,227 5,804,401
Financial and development funds 1,236 2,956 1,230
Subordinated debts (Notes 19 and 32b) 2,649,372 2,514,553 2,311,545
Sundry (Note 20b) 36,538,080 35,308,692 28,452,609
Long-term liabilities 207,795,160 214,734,626 219,223,705
Deposits (Notes 3n and 16a) 48,438,846 50,667,998 59,210,059
Interbank deposits 191,281 199,353 213,191
The accompanying Notes are an integral part of these Financial Statements.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Consolidated Statement of Financial Position – In thousands of Reais

Bradesco 113
Liabilities
2014 2013
June March June
Time deposits (Notes 16a and 32b) 48,247,565 50,468,645 58,996,868
Federal funds purchased and securities sold under agreements to repurchase
(Notes 3n and 16b) 23,403,544 22,197,346 17,858,536
Own portfolio 23,403,544 22,197,346 17,858,536
Funds from issuance of securities (Notes 16c and 32b) 32,978,552 37,952,071 28,977,913
Mortgage and real estate notes, letters of credit and others 27,895,149 32,652,954 21,311,125
Securities issued abroad 5,024,645 5,256,747 7,666,788
Structured Operations Certificates 58,758 42,370 -
Borrowing (Notes 17a and 32b) 857,437 971,137 1,036,810
Borrowing in Brazil - other institutions 14,179 8,761 6,879
Borrowing abroad 843,258 962,376 1,029,931
Onlending in Brazil - official institutions (Notes 17b and 32b) 28,340,766 29,089,213 26,325,469
BNDES 8,124,315 8,590,501 8,116,776
CEF 13,515 16,058 28,165
FINAME 20,202,564 20,482,285 18,178,885
Other institutions 372 369 1,643
Derivative financial instruments (Notes 3f, 8e II and 32b) 741,052 695,983 772,057
Derivative financial instruments 741,052 695,983 772,057
Technical reserves for insurance, pension plans and capitalization bonds (Notes
3o and 21) 23,663,671 23,384,244 25,301,917
Other liabilities 49,371,292 49,776,634 59,740,944
Tax and social security (Note 20a) 10,808,229 10,675,088 19,695,567
Subordinated debts (Notes 19 and 32b) 32,734,624 33,325,359 33,910,561
Sundry (Note 20b) 5,828,439 5,776,187 6,134,816
Deferred income 223,400 560,099 661,074
Deferred income 223,400 560,099 661,074
Non-controlling interests in subsidiaries (Note 22) 486,207 549,269 582,002
Shareholders' equity (Note 23) 76,800,278 73,325,996 66,027,513
Capital:
- Domiciled in Brazil 37,622,310 37,622,312 37,622,549
- Domiciled abroad 477,690 477,688 477,451
Capital reserves 11,441 11,441 11,441
Profit reserves 38,976,929 36,382,872 30,020,791
Asset valuation adjustments 9,923 (870,302) (1,907,418)
Treasury shares (Notes 23d and 32b) (298,015) (298,015) (197,301)
Attributable to equity holders of the Parent Company 77,286,485 73,875,265 66,609,515
Total 931,131,774 922,228,753 896,697,368

The accompanying Notes are an integral part of these Financial Statements.

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Consolidated Income Statement – In thousands of Reais

114 Report on Economic and Financial Analysis – June 2014

2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Revenue from financial intermediation 27,806,362 25,599,441 53,405,803 44,364,450
Loans (Note 10j) 14,316,694 13,666,972 27,983,666 25,369,039
Leasing (Note 10j) 165,636 176,592 342,228 407,922
Operations with securities (Note 8h) 8,018,709 7,231,372 15,250,081 13,822,165
Financial income from insurance, pension plans and capitalization bonds
(Note 8h) 3,564,421 3,263,448 6,827,869 3,746,383
Derivative financial instruments (Note 8h) 540,076 133,550 673,626 (1,603,839)
Foreign exchange operations (Note 11a) 73,647 (7,526) 66,121 1,172,934
Reserve requirement (Note 9b) 1,139,673 1,082,075 2,221,748 1,362,550
Sale or transfer of financial assets (12,494) 52,958 40,464 87,296

Financial intermediation expenses 17,176,987 16,080,203 33,257,190 29,514,464
Federal funds purchased and securities sold under agreements to
repurchase (Note 16e) 11,179,473 10,465,246 21,644,719 17,497,382
Adjustment for inflation and interest on technical reserves for insurance,
pension plans and capitalization bonds (Note 16e) 2,492,083 2,580,982 5,073,065 1,909,077
Borrowing and onlending (Note 17c) (139,128) (217,324) (356,452) 3,025,017
Allowance for loan losses (Notes 3g, 10g and 10h) 3,644,559 3,251,299 6,895,858 7,082,988

Gross income from financial intermediation 10,629,375 9,519,238 20,148,613 14,849,986

Other operating income (expenses) (3,991,364) (3,501,428) (7,492,792) (7,130,668)
Fee and commission income (Note 24) 5,225,624 5,190,428 10,416,052 9,394,618
Other fee and commission income 3,934,689 4,142,058 8,076,747 7,453,748
Income from banking fees 1,290,935 1,048,370 2,339,305 1,940,870
Insurance, pension plan and capitalization bond retained premiums
(Notes 3o and 21d) 13,883,351 11,382,058 25,265,409 24,089,514
Net premiums written 13,992,488 11,449,495 25,441,983 24,191,161
Reinsurance premiums (109,137) (67,437) (176,574) (101,647)
Variation in technical reserves for insurance, pension plans and
capitalization bonds (Note 3o) (6,504,866) (4,147,182) (10,652,048) (11,486,646)
Retained claims (Note 3o) (4,206,128) (4,216,031) (8,422,159) (7,274,092)
Capitalization bond draws and redemptions (Note 3o) (1,172,860) (1,086,733) (2,259,593) (1,883,384)
Insurance, pension plan and capitalization bond selling expenses
(Note 3o) (728,741) (687,865) (1,416,606) (1,262,358)
Payroll and related benefits (Note 25) (3,447,840) (3,279,147) (6,726,987) (6,250,514)
Other administrative expenses (Note 26) (3,606,827) (3,515,337) (7,122,164) (6,898,043)
Tax expenses (Note 27) (1,168,898) (1,141,275) (2,310,173) (1,968,486)
Equity in the earnings (losses) of unconsolidated companies (Note 13b) 34,864 51,763 86,627 15,220
Other operating income (Note 28) 707,261 811,285 1,518,546 1,725,886
Other operating expenses (Note 29) (3,006,304) (2,863,392) (5,869,696) (5,332,383)
Operating income 6,638,011 6,017,810 12,655,821 7,719,318
Non-operating income (loss) (Note 30) (134,594) (109,445) (244,039) 18,133
Income before income tax and social contribution and non-
controlling interests 6,503,417 5,908,365 12,411,782 7,737,451
Income tax and social contribution (Notes 34a and 34b) (2,696,382) (2,435,388) (5,131,770) (1,813,090)
Non-controlling interests in subsidiaries (29,281) (29,801) (59,082) (56,523)
Net income 3,777,754 3,443,176 7,220,930 5,867,838

The accompanying Notes are an integral part of these Financial Statements.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Statement of Changes in Shareholders’ Equity – In Thousands of Reais

Bradesco 115
Events Paid-in
Capital
reserves
Profit reserves
Asset valuation
adjustments Treasury
shares
Retained
earnings
(accumulated
losses)
Total
Share
premium
Legal Statutory Bradesco Subsidiaries
Balance on December 31, 2012 30,100,000 11,441 3,838,474 30,380,303 886,689 5,027,853 (197,301) - 70,047,459
Capital increase through reserves 8,000,000 - - (8,000,000) - - - - -
Asset valuation adjustments - - - - (2,887,377) (4,934,583) - - (7,821,960)
Net income - - - - - - - 5,867,838 5,867,838
Allocations: - Reserves - - 293,392 3,508,622 - - - (3,802,014) -
- Interest on shareholders’ equity paid and/or provisioned - - - - - - - (2,065,824) (2,065,824)
Balance on June 30, 2013 38,100,000 11,441 4,131,866 25,888,925 (2,000,688) 93,270 (197,301) - 66,027,513

Balance on December 31, 2013 38,100,000 11,441 4,439,025 29,712,872 (865,373) (189,070) (269,093) - 70,939,802
Acquisition of treasury shares - - - - - - (28,922) - (28,922)
Asset valuation adjustments - - - - (5,420) 189,561 - - 184,141
Net income - - - - - - - 3,443,176 3,443,176
Allocations: - Reserves - - 172,159 2,058,816 - - - (2,230,975) -
- Interest on shareholders’ equity paid and/or provisioned - - - - - - - (1,212,201) (1,212,201)
Balance on March 31, 2014 38,100,000 11,441 4,611,184 31,771,688 (870,793) 491 (298,015) - 73,325,996
Asset valuation adjustments - - - - 592,839 287,386 - - 880,225
Net income - - - - - - - 3,777,754 3,777,754
Allocations: - Reserves - - 188,888 2,405,169 - - - (2,594,057) -
- Interest on shareholders’ equity paid and/or provisioned - - - - - - - (354,697) (354,697)
- Interim Dividends Provisioned - - - - - - - (829,000) (829,000)
Balance on June 30, 2014 38,100,000 11,441 4,800,072 34,176,857 (277,954) 287,877 (298,015) - 76,800,278

Balance on December 31, 2013 38,100,000 11,441 4,439,025 29,712,872 (865,373) (189,070) (269,093) - 70,939,802
Acquisition of treasury shares - - - - - - (28,922) - (28,922)
Asset valuation adjustments - - - - 587,419 476,947
-
- 1,064,366
Net income - - - - - -
-
7,220,930 7,220,930
Allocations: - Reserves - - 361,047 4,463,985 - - - (4,825,032) -
- Interest on shareholders’ equity paid and/or provisioned - - - - - - - (1,566,898) (1,566,898)
- Interim Dividends Provisioned - - - - - - - (829,000) (829,000)
Balance on June 30, 2014 38,100,000 11,441 4,800,072 34,176,857 (277,954) 287,877 (298,015) - 76,800,278

The accompanying Notes are an integral part of these Financial Statements.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Statement of value added - In thousands of Reais

116 Report on Economic and Financial Analysis – June 2014
Description
2014 2013
2
nd
quarter % 1
st
quarter % 1
st
semester % 1
st
semester %
1 - Revenue 28,461,401 251.0 26,854,472 254.6 55,315,873 252.7 45,857,354 280.1
1.1) Financial intermediation 27,806,362 245.2 25,599,441 242.7 53,405,803 244.0 44,364,450 271.0
1.2) Fees and commissions 5,225,624 46.1 5,190,428 49.2 10,416,052 47.6 9,394,618 57.4
1.3) Allowance for loan losses (3,644,559) (32.1) (3,251,299) (30.8) (6,895,858) (31.5) (7,082,988) (43.3)
1.4) Other (926,026) (8.2) (684,098) (6.5) (1,610,124) (7.4) (818,726) (5.0)
2 - Financial intermediation expenses (13,532,428) (119.3) (12,828,904) (121.6) (26,361,332) (120.4) (22,431,476) (137.0)
3 - Inputs acquired from third-parties (2,924,347) (25.8) (2,849,666) (27.1) (5,774,013) (26.4) (5,640,234) (34.5)
Material, water, electricity and gas (147,345) (1.3) (138,637) (1.3) (285,982) (1.3) (264,961) (1.6)
Outsourced services (923,863) (8.1) (903,415) (8.6) (1,827,278) (8.3) (1,701,779) (10.4)
Communication (378,197) (3.3) (375,505) (3.6) (753,702) (3.4) (795,449) (4.9)
Financial system services (187,589) (1.7) (197,048) (1.9) (384,637) (1.8) (368,050) (2.2)
Advertising and marketing (170,499) (1.5) (178,249) (1.7) (348,748) (1.6) (330,118) (2.0)
Transport (199,590) (1.8) (202,885) (1.9) (402,475) (1.8) (404,105) (2.5)
Data processing (326,301) (2.9) (335,694) (3.2) (661,995) (3.0) (615,211) (3.8)
Asset maintenance (179,873) (1.6) (151,507) (1.4) (331,380) (1.5) (315,580) (1.9)
Security and surveillance (138,787) (1.2) (138,307) (1.3) (277,094) (1.3) (239,391) (1.5)
Travel (34,368) (0.3) (30,252) (0.3) (64,620) (0.3) (60,978) (0.4)
Other (237,935) (2.1) (198,167) (1.9) (436,102) (2.1) (544,612) (3.3)
4 – Gross value added (1-2-3) 12,004,626 105.9 11,175,902 105.9 23,180,528 105.9 17,785,644 108.6
5 - Depreciation and amortization (699,889) (6.2) (679,403) (6.4) (1,379,292) (6.3) (1,430,538) (8.7)
6 - Net value added produced by the
entity (4-5) 11,304,737 99.7 10,496,499 99.5 21,801,236 99.6 16,355,106 99.9
7 - Value added received through
transfer 34,864 0.3 51,763 0.5 86,627 0.4 15,220 0.1
Equity in the earnings (losses) of
unconsolidated companies 34,864 0.3 51,763 0.5 86,627 0.4 15,220 0.1
8 - Value added to distribute (6+7) 11,339,601 100.0 10,548,262 100.0 21,887,863 100.0 16,370,326 100.0
9 – Value added distributed 11,339,601 100.0 10,548,262 100.0 21,887,863 100.0 16,370,326 100.0
9.1) Personnel 2,997,589 26.4 2,850,300 27.1 5,847,889 26.7 5,435,519 33.3
Salaries 1,563,127 13.8 1,516,258 14.4 3,079,385 14.1 2,912,683 17.8
Benefits 704,205 6.2 697,236 6.6 1,401,441 6.4 1,311,420 8.0
Government Severance Indemnity
Fund for Employees (FGTS) 147,462 1.3 143,606 1.4 291,068 1.3 276,703 1.7
Other 582,795 5.1 493,200 4.7 1,075,995 4.9 934,713 5.8
9.2) Tax, fees and contributions 4,315,531 38.1 4,005,510 37.9 8,321,041 38.1 4,596,571 28.1
Federal 4,146,415 36.6 3,818,750 36.2 7,965,165 36.4 4,281,822 26.2
State 8,783 0.1 3,216 - 11,999 0.1 4,393 -
Municipal 160,333 1.4 183,544 1.7 343,877 1.6 310,356 1.9
9.3) Value distributed to providers of
capital 219,446 1.9 219,475 2.0 438,921 2.0 413,875 2.5
Rental 215,859 1.9 213,903 2.0 429,762 2.0 408,578 2.5
Asset leasing 3,587 - 5,572 - 9,159 - 5,297 -
9.4) Value distributed to shareholders 3,807,035 33.6 3,472,977 33.0 7,280,012 33.2 5,924,361 36.1
Interest on shareholders’
equity/dividends 1,183,697 10.4 1,212,201 11.5 2,395,898 10.9 2,065,824 12.6
Retained earnings 2,594,057 22.9 2,230,975 21.2 4,825,032 22.0 3,802,014 23.2
Non-controlling interests in retained
earnings 29,281 0.3 29,801 0.3 59,082 0.3 56,523 0.3

The accompanying Notes are an integral part of these Financial Statements.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Consolidated Cash Flow Statement - In Thousands of Reais

Bradesco 117

2014 2013

2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Cash flow from operating activities:
Net Income before income tax and social contribution 6,503,417 5,908,365 12,411,782 7,737,451
Adjustments to net income before income tax and social contribution 7,907,424 7,606,227 15,513,651 12,547,803
Allowance for loan losses 3,644,559 3,251,299 6,895,858 7,082,988
Depreciation and amortization 699,889 679,403 1,379,292 1,430,538
Expenses with civil, labor and tax provisions 727,276 799,809 1,527,085 2,175,920
Expenses with adjustment for inflation and interest on technical reserves for
insurance, pension plans and capitalization bonds 2,492,083 2,580,982 5,073,065 1,909,077
Equity in the earnings (losses) of unconsolidated companies (34,864) (51,763) (86,627) (15,220)
(Gain)/loss on sale of investments 1,858 (4) 1,854 (166,566)
(Gain)/loss on sale of fixed assets (10,765) 3,127 (7,638) 11,753
(Gain)/loss on sale of foreclosed assets 83,247 62,899 146,146 86,506
Other 304,141 280,475 584,616 32,807
Adjusted net income before taxes 14,410,841 13,514,592 27,925,433 20,285,254
(Increase)/decrease in interbank investments (1,059,515) 15,613,632 14,554,117 60,667,600
(Increase)/decrease in trading securities and derivative financial instruments (8,295,443) (68,310) (8,363,753) 30,532,390
(Increase)/decrease in interbank and interdepartmental accounts 536,913 (2,726,528) (2,189,615) (1,967,362)
(Increase) in loan and leasing (3,589,399) (8,794,161) (12,383,560) (20,907,793)
(Increase) in insurance and reinsurance receivables and reinsurance assets –
technical reserves (292,683) (279,231) (571,914) (751,432)
Increase/(decrease) in technical reserves for insurance, pension plans and
capitalization bonds 2,489,501 (1,059,288) 1,430,213 5,692,366
Increase/(decrease) in deferred income (336,699) (116,634) (453,333) 3,427
(Increase)/decrease in other receivables and other assets 7,562,437 (3,618,405) 3,944,032 (2,531,259)
(Increase)/decrease in reserve requirement - Brazilian Central Bank 5,417,334 (3,538,171) 1,879,163 (2,294,629)
Increase/(decrease) in deposits (5,438,962) 646,450 (4,792,512) (3,371,999)
Increase/(decrease) in federal funds purchased and securities sold under
agreements to repurchase 4,894,958 (5,562,766) (667,808) 11,233,968
Increase in funds from issuance of securities 5,366,132 6,856,616 12,222,748 2,461,303
Increase/(decrease) in borrowings and onlending (2,582,701) 629,165 (1,953,536) 4,934,860
Increase/(decrease) in other liabilities (6,584,618) 7,747,175 1,162,557 (2,839,820)
Income tax and social contribution paid (1,258,209) (2,839,584) (4,097,793) (4,436,488)
Net cash provided by/(used in) operating activities 11,239,887 16,404,552 27,644,439 96,710,386
Cash flow from investing activities:
(Increase)/decrease in held-to-maturity securities (324,087) (561,866) (885,953) 189,963
Sale of/maturity of and interests on available-for-sale securities 12,404,826 10,632,545 23,037,371 27,958,933
Proceeds from sale of foreclosed assets 141,620 131,827 273,447 204,611
Sale of investments 1,583 2,277 3,860 198,435
Sale of premises and equipment 139,076 176,261 315,337 264,298
Purchases of available-for-sale securities (12,954,809) (16,569,919) (29,524,728) (60,877,870)
Foreclosed asset acquisitions (352,534) (309,650) (662,184) (528,565)
Investment acquisitions (5,044) (1,440) (6,484) (76,442)
Purchase of premises and equipment (306,030) (263,981) (570,011) (577,445)
Intangible asset acquisitions (211,723) (168,778) (380,501) (1,723,220)
Dividends and interest on shareholders' equity received 28,833 119,882 148,715 179,991
Net cash provided by/(used in) investing activities (1,438,289) (6,812,842) (8,251,131) (34,787,311)
Cash flow from financing activities:
Increase/(decrease) in subordinated debts (455,916) (45,091) (501,007) 1,370,392
Dividends and interest on shareholders’ equity paid (248,665) (2,346,657) (2,595,322) (2,788,503)
Non-controlling interest (92,343) (85,967) (178,310) (62,715)
Acquisition of own shares - (28,922) (28,922) -
Net cash provided by/(used in) financing activities (796,924) (2,506,637) (3,303,561) (1,480,826)
Net increase in cash and cash equivalents 9,004,674 7,085,073 16,089,747 60,442,249
Cash and cash equivalents - at the beginning of the period 124,909,995 117,824,922 117,824,922 47,555,069
Cash and cash equivalents - at the end of the period 133,914,669 124,909,995 133,914,669 107,997,318
Net increase in cash and cash equivalents 9,004,674 7,085,073 16,089,747 60,442,249

The accompanying Notes are an integral part of these Financial Statements.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Financial Statements Index

118 Report on Economic and Financial Analysis – June 2014
Notes to Bradesco’s Financial Statements are as follows:
Page

1) OPERATIONS 119
2) PRESENTATION OF THE FINANCIAL STATEMENTS 119
3) SIGNIFICANT ACCOUNTING PRACTICES 121
4) INFORMATION FOR COMPARISON PURPOSES 129
5) STATEMENT OF FINANCIAL POSITION AND INCOME STATEMENT DEMONSTRATED BY OPERATING SEGMENT 130
6) CASH AND CASH EQUIVALENTS 131
7) INTERBANK INVESTMENTS 132
8) SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS 133
9) INTERBANK ACCOUNTS - RESERVE REQUIREMENT 146
10) LOANS 147
11) OTHER RECEIVABLES 159
12) OTHER ASSETS 161
13) INVESTMENTS 161
14) PREMISES AND EQUIPMENT 163
15) INTANGIBLE ASSETS 164
16) DEPOSITS, FEDERAL FUNDS PURCHASED AND SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND
FUNDS FROM ISSUANCE OF SECURITIES 165
17) BORROWING AND ONLENDING 169
18) PROVISIONS, CONTINGENT ASSETS AND LIABILITIES AND LEGAL LIABILITIES - TAX AND SOCIAL SECURITY 170
19) SUBORDINATED DEBT 174
20) OTHER LIABILITIES 177
21) INSURANCE, PENSION PLANS AND CAPITALIZATION BONDS 178
22) NON-CONTROLLING INTERESTS IN SUBSIDIARIES 181
23) SHAREHOLDERS’ EQUITY (PARENT COMPANY) 181
24) FEE AND COMMISSION INCOME 184
25) PAYROLL AND RELATED BENEFITS 184
26) OTHER ADMINISTRATIVE EXPENSES 184
27) TAX EXPENSES 185
28) OTHER OPERATING INCOME 185
29) OTHER OPERATING EXPENSES 185
30) NON-OPERATING INCOME (LOSS) 185
31) RELATED-PARTY TRANSACTIONS (DIRECT AND INDIRECT) 186
32) FINANCIAL INSTRUMENTS 188
33) EMPLOYEE BENEFITS 199
34) INCOME TAX AND SOCIAL CONTRIBUTION 200
35) OTHER INFORMATION 202


Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 119
1) OPERATIONS
Banco Bradesco S.A. (Bradesco) is a private-sector publicly traded company and universal bank that
carries out all types of banking activities that it is authorized to do so through its commercial, foreign
exchange, consumer financing and housing loan portfolios. The Bank has a number of other activities,
either directly or indirectly, through its subsidiaries, particularly in leasing, investment banking, brokerage,
consortium management, credit cards, real estate projects, insurance, pension plans and capitalization
bonds. Operations are conducted within the context of the companies within the Bradesco Organization,
working together in the market.
2) PRESENTATION OF THE FINANCIAL STATEMENTS
Bradesco’s consolidated financial statements include the financial statements for Banco Bradesco, its
foreign branches, subsidiaries and jointly-controlled entities, in Brazil and abroad, including SPEs (Special
Purpose Entities). They were prepared based on accounting practices issued by Laws n
o
4595/64 (Brazilian
Financial System Law) and n
o
6404/76 (Brazilian Corporate Law), along with amendments introduced by
Laws n
o
11638/07 and n
o
11941/09 relating to the accounting of operations, associated with rules and
instructions of the National Monetary Council (CMN) and the Brazilian Central Bank (Bacen), Brazilian
Securities and Exchange Commission (CVM), where applicable, National Private Insurance Council
(CNSP), Insurance Superintendence (Susep) and National Supplementary Healthcare Agency (ANS). The
financial statements of leasing companies included in the consolidated information were prepared using
finance leases, whereby leased fixed assets are classified as operating leases less the residual value paid
in advance.

In the preparation of these consolidated financial statements, intercompany transactions, including
investments, assets and liabilities, revenue, expenses and unrealized profit were eliminated and net income
and shareholders’ equity attributable to the non-controlling interests were accounted for on a separate line.
For jointly-controlled investments with other shareholders, assets, liabilities and income and loss were
proportionally consolidated in the consolidated financial statements according to the interest on
shareholders’ equity of each investee. Goodwill on the acquisition of investments in
subsidiary/unconsolidated companies or jointly-controlled entities is included in investments and intangible
assets (Note 15a). The foreign exchange variation from foreign branches or investments is presented in
the income statement accounts together with changes in the value of the derivative financial instrument,
borrowing or onlending operation to eliminate the effect of these investment hedge instruments.

The financial statements include estimates and assumptions, such as: the calculation of estimated loan
losses; fair value estimates of certain financial instruments; civil, tax and labor provisions; impairment losses
of securities classified as available-for-sale and held-to-maturity and non-financial assets; the calculation
of technical reserves for insurance, pension plans and capitalization bonds; and the determination of the
useful life of specific assets. Actual results may differ from those based on estimates and assumptions.

Bradesco’s consolidated financial statements were approved by the Board of Directors on July 30, 2014.



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Notes to the Consolidated Financial Statements

120 Report on Economic and Financial Analysis – June 2014
Below are the primary direct and indirectly owned companies included in the consolidation:


Activity
Equity interest
2014 2013
June 30 March 31 June 30
Financial Area - Brazil
Alvorada Cartões, Crédito, Financiamento e Investimento S.A. (1) Banking - 100.00% 100.00%
Banco Alvorada S.A. Banking 99.99% 99.99% 99.99%
Banco Bradesco Financiamentos S.A. Banking 100.00% 100.00% 100.00%
Banco Bankpar S.A. (2) Banking - 100.00% 100.00%
Banco Bradesco BBI S.A. Investment bank 98.35% 98.35% 98.35%
Banco Boavista Interatlântico S.A. Banking 100.00% 100.00% 100.00%
Banco CBSS S.A. (3) Banking 100.00% 100.00% 100.00%
Banco Bradesco Cartões S.A. Cards 100.00% 100.00% 100.00%
Bradesco Administradora de Consórcios Ltda.
Consortium
management
100.00% 100.00% 100.00%
Banco Bradesco BERJ S.A. (4) Banking 100.00% 100.00% 100.00%
Bradesco Leasing S.A. Arrendamento Mercantil Leasing 100.00% 100.00% 100.00%
Bradesco S.A. Corretora de Títulos e Valores Mobiliários Brokerage 100.00% 100.00% 100.00%
BRAM - Bradesco Asset Management S.A. DTVM Asset management 100.00% 100.00% 100.00%
Ágora Corretora de Títulos e Valores Mobiliários S.A. Brokerage 100.00% 100.00% 100.00%
Banco Bradescard S.A. Cards 100.00% 100.00% 100.00%
Cielo S.A. (5) Services 28.65% 28.65% 28.65%
Cia. Brasileira de Soluções e Serviços - Alelo (5) Services 50.01% 50.01% 50.01%
Tempo Serviços Ltda. Services 100.00% 100.00% 100.00%
Financial Area - Abroad
Banco Bradesco Argentina S.A. Banking 99.99% 99.99% 99.99%
Banco Bradesco Europa S.A. Banking 100.00% 100.00% 100.00%
Banco Bradesco S.A. Grand Cayman Branch (6) Banking 100.00% 100.00% 100.00%
Banco Bradesco New York Branch Banking 100.00% 100.00% 100.00%
Bradesco Securities, Inc. Brokerage 100.00% 100.00% 100.00%
Bradesco Securities, UK. Brokerage 100.00% 100.00% 100.00%
Insurance, Pension Plan and Capitalization Bond Area

Bradesco Argentina de Seguros S.A. Insurance 99.92% 99.92% 99.92%
Bradesco Auto/RE Companhia de Seguros Insurance 100.00% 100.00% 100.00%
Bradesco Capitalização S.A. Capitalization bonds 100.00% 100.00% 100.00%
Bradesco Saúde S.A. Insurance/health 100.00% 100.00% 100.00%
Odontoprev S.A. (7) Dental care 50.01% 50.01% 43.50%
Bradesco Seguros S.A. Insurance 100.00% 100.00% 100.00%
Bradesco Vida e Previdência S.A. Pension plan/insurance 100.00% 100.00% 100.00%
Atlântica Companhia de Seguros Insurance 100.00% 100.00% 100.00%
Other Activities
Andorra Holdings S.A. Holding 100.00% 100.00% 100.00%
Bradseg Participações S.A. Holding 100.00% 100.00% 100.00%
Bradescor Corretora de Seguros Ltda. Insurance brokerage 100.00% 100.00% 100.00%
Bradesplan Participações Ltda. Holding 100.00% 100.00% 100.00%
BSP Empreendimentos Imobiliários S.A. Real estate 100.00% 100.00% 100.00%
Cia. Securitizadora de Créditos Financeiros Rubi Credit acquisition 100.00% 100.00% 100.00%
Columbus Holdings S.A. Holding 100.00% 100.00% 100.00%
Nova Paiol Participações Ltda. Holding 100.00% 100.00% 100.00%
Scopus Tecnologia Ltda. Information technology 100.00% 100.00% 100.00%
União Participações Ltda. Holding 100.00% 100.00% 100.00%

(1) Company merged into Banco Bradesco BERJ S.A. in April 2014;
(2) Company merged into Banco Bradesco Cartões S.A. in June 2014;
(3) New corporate name of Bankpar Arrendamento Mercantil S.A.;
(4) Currently Banco BERJ S.A.;
(5) Company proportionally consolidated, pursuant to CMN Resolution n
o
2723/00 and CVM Rule n
o
247/96;
(6) The special purpose entity International Diversified Payment Rights Company is being consolidated. The company takes part in the
securitization operation of future flow of payment orders received from overseas (Note 16d); and
(7) Increase in equity interest through share acquisition in January 2014;
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 121
3) SIGNIFICANT ACCOUNTING PRACTICES
a) Functional and Presentation Currencies

Consolidated financial statements are presented in Brazilian reais, which is also Bradesco’s functional
currency. Foreign branches and subsidiaries are mainly a continuation of activities in Brazil, and,
therefore, assets, liabilities and profit or loss are translated into Brazilian reais using the appropriate
currency exchange rate to comply with accounting practices adopted in Brazil. Foreign currency
translation gains and losses arising are recognized in the period’s income statement under items
“Derivative Financial Instruments” and “Borrowing and Onlending”.

b) Income and Expense Recognition

Income and expenses are recognized on an accrual basis together to determine the net income for the
period to which they relate, regardless of receipt or payment of funds.

Fixed rate transactions are recorded at their redemption value with the income or expense relating to
future periods being recorded as a deduction from the corresponding asset or liability. Finance income
and costs are prorated daily and calculated based on the exponential method, except when they relate
to discounted notes or to foreign transactions which are calculated using the straight-line method.

Floating rate or foreign-currency-indexed transactions are adjusted for inflation at the end of the
reporting period.

Insurance and coinsurance premiums, net of premiums assigned to coinsurance and corresponding
commissions, are recorded upon the issue of the related policies/certificates/endorsements and
invoices, or upon the beginning of the effectiveness of risk in cases in which the risk begins before the
issue, and recognized on a straight-line basis during the policies’ effective period through accrual and
reversal of the unearned premium reserve of deferred acquisition costs. Revenues from premiums and
the corresponding deferred acquisition costs, relating to existing risk but with no policy issued, are
recorded in the income statement at the beginning of the risk coverage, based on estimated figures.

Recognition of health insurance premiums commences concurrent with the effectiveness of the
corresponding insurance policy, and is recognized in proportion to the portion of the term elapsed.

Income and expenses arising from DPVAT insurance operations are recorded based on information
provided by Seguradora Líder dos Consórcios do Seguro DPVAT S.A.

Accepted coinsurance and retrocession operations are recorded based on the information received from
other companies and IRB - Brasil Resseguros S.A. (IRB), respectively. Deferral of reinsurance
premiums granted is consistent to the corresponding reinsurance premium and/or reinsurance contract.

Brokerage and acquisition of new health insurance operations are deferred and recorded in the income
statement on a straight-line basis according to the average time beneficiaries stay in a plan, as
measured by a technical study, as provided for in ANS Normative Resolution n
o
314/12.

Pension plan contributions and life insurance premiums covering survival are recognized in the income
statement as they are received. Income from management fees paid by special-purpose investment
funds are recognized on the accrual basis at contractual rates.

Income from capitalization bonds is recognized when it is effectively received. Income from prescribed
capitalization bonds are recognized after the prescription period, which according to Brazilian law, is up
to 20 years for capitalization bonds and drawings not redeemed by November 11, 2003 and 5 years
after this date. The expenses for placement of capitalization bonds, classified as “Acquisition Costs”,
are recognized when they are incurred. Technical reserves are recorded when the respective revenues
are registered in books.

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Notes to the Consolidated Financial Statements

122 Report on Economic and Financial Analysis – June 2014

c) Cash and cash equivalents

Cash and cash equivalents include: funds available in currency, investments in gold, investments in
federal funds purchases and securities sold under agreements to repurchase and interest-earning
deposits in other banks, maturing in 90 days or less, and are exposed to insignificant risk of change in
fair value. These funds are used by Bradesco to manage its short-term commitments.

Cash and cash equivalents detailed balances are reflected in Note 6.

d) Interbank investments

Unrestricted purchase and sale commitments are stated at their fair value. Other investments are stated
at cost, plus income earned up to the end of the reporting period, net of any devaluation allowance, if
applicable.

The breakdown, terms and proceeds relating to interbank investments are presented in Note 7.

e) Securities - Classification

? Trading securities - securities acquired for the purpose of being actively and frequently traded. They
are recorded at cost, plus income earned and adjusted to Fair value recognized in profit or loss for
the period;

? Available-for-sale securities - securities that are not specifically intended for trading purposes or to
be held to maturity. They are recorded at cost, plus income earned, which is recorded in profit or loss
in the period and adjusted to Fair value within shareholders' equity, net of tax, which will be
recognized in profit or loss only when effectively disposed; and

? Held-to-maturity securities - securities for which there is positive intent and financial capacity to hold
in the portfolio to maturity. They are recorded at cost, plus earnings recognized in profit or loss for
the period.

Securities classified as trading and available-for-sale, as well as derivative financial instruments, are
recognized in the consolidated statement of financial position at their fair value. Fair value is generally
based on quoted market prices or quotations for assets or liabilities with similar characteristics. If market
prices are not available, fair values are based on traders’ quotations, pricing models, discounted cash
flows or similar techniques to determine the fair value and may require judgment or significant estimates
by Management.

Classification, breakdown and segmentation of securities are presented in Note 8 (a to d).

f) Derivative financial instruments (assets and liabilities)

Classified according to intended use by Management, on the date that the operation was contracted
and considering if it was intended for hedging purposes or not.

Operations involving derivative financial instruments are designed to meet the Bank’s own needs in
order to manage overall exposure, as well as to meet customer requests to manage their positions.
Gains and losses are recorded in income or expenses accounts of the respective financial instruments.

Derivative financial instruments used to mitigate risk deriving from exposure to variations in the Fair
value of financial assets and liabilities are designated as hedges and are classified according to their
nature:

? Market risk hedge: financial instruments classified in this category as well as the hedge-related
financial assets and liabilities, gains and losses, realized or not, are recorded in the income
statement; and

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 123
? Cash flow hedge: effective portion of valuation or devaluation of financial instruments classified in
this category is recorded, net of taxes, in a specific account under shareholders’ equity. The
ineffective portion of the respective hedge is directly recognized in profit or loss.

A breakdown of amounts included in derivative financial instruments, in the balance sheet and off-
balance-sheet accounts, is disclosed in Note 8 (e to h).

g) Loans and leasing, advances on foreign exchange contracts, other receivables with credit
characteristics and allowance for loan losses

Loans and leasing, advances on foreign exchange contracts and other receivables with credit
characteristics are classified by risk level, based on: (i) the parameters established by CMN Resolution
n
o
2682/99, which requires risk ratings to have nine levels, where “AA” is (minimum risk) and “H”
(maximum risk); and (ii) the Administration’s assessment of the risk level. This assessment, which is
carried out regularly, considers current economic conditions and past experience with loan losses, as
well as specific and general risks relating to operations, debtors and guarantors. Moreover, the period
of late payment defined in CMN Resolution n
o
2682/99 is also considered to rate customer risk as
follows:

Past-due period (1) Customer rating
? from 15 to 30 days B
? from 31 to 60 days C
? from 61 to 90 days D
? from 91 to 120 days E
? from 121 to 150 days F
? from 151 to 180 days G
? more than 180 days H

(1) For transactions with terms of more than 36 months, past-due periods are doubled, as allowed under CMN Resolution
n
o
2682/99.

Interest and inflation adjustments on past-due transactions are only recognized up to the 59
th
day that
they are past due. As from the 60
th
day, they are recognized in deferred income.

H-rated past-due transactions remain at this level for six months, after which they are written-off against
the existing allowance and controlled in off-balance-sheet accounts for at least five years.

Renegotiated transactions are maintained at least at the same level as previously classified.
Renegotiations already written-off against the allowance and that were recorded in off-balance-sheet
accounts, are rated as level “H” and any possible gains derived from their renegotiation are recognized
only when they are effectively received. When there is a significant repayment on the operation or when
new material facts justify a change in the level of risk, the operation may be reclassified to a lower risk
category.

The estimated allowance for loan losses is calculated to sufficiently cover probable losses, considering
CMN and Bacen standards and instructions, together with Management assessment to determine credit
risk.

Type, values, terms, levels of risk, concentration, economic sector of the activity, renegotiation and
income from loans, as well as the breakdown of expenses and statement of financial position accounts
for the allowance for loan losses are presented in Note 10.

h) Income tax and social contribution (assets and liabilities)

Income tax and social contribution credits, calculated on income tax losses, social contribution losses
and temporary additions are recorded in “Other Receivables - Sundry” and the provisions for deferred
tax liabilities on tax differences in leasing depreciation and mark-to-market adjustments on securities
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

124 Report on Economic and Financial Analysis – June 2014
are recorded in “Other Liabilities - Tax and Social Security”. The income tax rate only applies to tax
differences in leasing depreciation.

Tax credits on temporary additions are used and/or reversed against the corresponding provision. Tax
credits on income tax and social contribution losses are used when taxable income is generated, under
the 30% limit of the taxable profit for the period. Such tax credits are recorded based on current
expectations on when the deduction can be used, considering technical studies and analyses carried
out by Management.

The provision for income tax is calculated at 15% of taxable income plus a 10% surcharge. Social
contribution on net income is calculated at 15% for financial institutions and insurance companies and
at 9% for other companies.

Provisions were recorded for other income tax and social contribution in accordance with specific
applicable legislation.

Pursuant to Law n
o
11941/09, changes in the criteria to recognize for revenue, costs and expenses
included in the net income for the period, enacted by Law n
o
11638/07 and by Articles n
o
37 and n
o
38
of Law n
o
11941/09, shall not affect taxable income, and, for tax purposes, accounting methods and
criteria in force on December 31, 2007 are considered. For accounting purposes, the tax effects of
adopting the aforementioned laws are recorded in the corresponding deferred tax assets and liabilities.

The breakdown of income tax and social contribution, showing the calculations, the origin and expected
use of tax credits, as well as unrecorded tax credits, are presented in Note 34.

i) Prepaid expenses

Prepaid expenses are represented by use of funds for future benefits or services, which are recognized
in the profit or loss on an accrual basis.

Incurred costs relating to corresponding assets that will generate revenue in subsequent periods are
recorded in profit or loss according to the terms and the amount of expected benefits and directly written-
off in profit or loss when the corresponding assets or rights are no longer part of the institution’s assets
or when future benefits are no longer expected.

Prepaid expenses are shown in details in Note 12b.

j) Investments

Investments in unconsolidated companies, with significant influence over the investee or with at least
20% of the voting rights, are accounted for by the equity method.

Tax incentives and other investments are stated at cost, less allowance for losses/impairment, where
applicable.

Subsidiaries and jointly-controlled entities are consolidated - The composition of the main companies
can be found in Note 2. The composition of unconsolidated companies, as well as other investments,
can be found in Note 13.

k) Premises and equipment

Relates to the tangible assets used by the Bank in its activities or used for that purpose, including those
transactions which transfer risks, benefits and controls of the assets to the entity.

Premises and equipment are stated at acquisition cost, net of accumulated depreciation, calculated by
the straight-line method based on the assets’ estimated economic useful life, using the following rates:
real estate - 4% per annum; furniture and utensils and machinery and equipment - 10% per annum;
transport systems - 20% per annum; and data-processing systems - 20% to 50% per annum, and
adjusted through impairment, when applicable.

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 125
The breakdown of asset costs and their corresponding depreciation, as well as the unrecorded surplus
value for real estate and fixed asset ratios, is presented in Note 14.

l) Intangible assets

Relates to the right over intangible assets used by the Bank in its activities or used for that purpose.

Intangible assets comprise:

? Future profitability/acquired client portfolio and acquisition of right to provide banking services: they
are recorded and amortized, as applicable, over the period in which the asset will directly and
indirectly contribute to future cash flows and adjusted through impairment, where applicable; and

? Software: stated at cost less amortization calculated on a straight-line basis over the estimated useful
life (20% to 50% p.a.), from the date it is available for use and adjusted through impairment, where
applicable. Internal software development costs are recognized as an intangible asset when it is
possible to show the intention and ability to complete such development, as well as to reliably
measure costs directly attributable to the intangible asset. These costs are amortized during its
estimated useful life, considering the expected future economic benefits.

Goodwill and other intangible assets, including their changes by class, are broken down in Note 15.

m) Impairment

Financial and non-financial assets are tested for impairment.

Impairment evidence may comprise the non-payment or payment delay by the debtor, possible
bankruptcy process or even significant or extended decline in asset value.

An impairment loss of a financial or non-financial asset is recognized in the profit or loss for the period
if the book value of an asset or cash-generating unit exceeds its recoverable value.

Impairment losses are presented in Note 8d(10).

n) Deposits and federal funds purchased and securities sold under agreements to repurchase

These are recognized at the value of the liabilities and include, when applicable, related charges up to
the end of the reporting period, on a daily prorated basis.

A breakdown of securities recorded in deposits and federal funds purchased and securities sold under
agreements to repurchase, as well as terms and amounts recognized in the statement of financial
position and income statement, is presented in Note 16.

o) Technical reserves relating to insurance, pension plans and capitalization bonds

? Damage, health and group insurance lines, except life insurance covering survival:

- The unearned premium reserve (PPNG) is calculated on a daily prorated basis, using premiums
net of coinsurance assignment, but including reinsurance transfer operations, is comprised of the
portion corresponding to the periods of risk not arising from insurance policies less initial
contracting costs, except for health and personal insurance, and includes estimates for risks in
effect but not issued (RVNE);

- The unearned premium or contribution reserve (PPCNG) is calculated on a daily prorated basis
considering health insurance premiums and recorded by the portion corresponding to the
insurance contract risk periods to be elapsed, whose effectiveness has already started;

- The mathematical reserve for unvested benefits (PMBaC) is calculated by the difference between
the current value of future benefits and the current value of future contributions, corresponding to
assumed obligations;
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Notes to the Consolidated Financial Statements

126 Report on Economic and Financial Analysis – June 2014

- The reserve for unvested benefits relating to the individual health care plan portfolio covers the
holder’s dependents for five years upon death, and it is calculated based on the time dependents
are expected to remain in the plan up to the end of this five-year period, in addition to the discount
rate based on the Bank’s own study; after this, it is calculated based on costs on the five-year-
period plan, excluding payment of premiums;

- The reserve for vested benefits relating to the individual health care plan portfolio comprises
obligations under the terms of the contract relating to coverage of the health care plan, and
premiums for the payment of insurers participating in the Bradesco Saúde– “GBS Plan” insurance,
based on the present value of estimated future expenses with health care provided to dependents
whose holders are already deceased, as provided for in ANS Normative Resolution n
o
75/04, and
the discount rate based on the Bank’s own study;

- For Health Insurance, the reserve for incurred but not reported (IBNR) claims is calculated based
on incurred but not paid (IBNP) claims less the balance of the reserve for unsettled claims (PSL)
on the calculation date. A final estimate of IBNP claims based on monthly run-off triangles, which
consider the claims ratio in the last 12 months, is prepared to calculate IBNP claims;

- For non-life insurance, the reserve for incurred but not reported (IBNR) claims is calculated based
on incurred but not paid (IBNP) claims less the balance of the reserve for unsettled claims (PSL)
on the calculation date. A final estimate of IBNP claims based on biannual run-off triangles is
prepared to calculate IBNP claims. The run-off triangles consider the historical development of
claims paid in the last 14 semesters to determine a future projection per occurrence period, and
considers the estimated claims incurred and not enough reported (IBNER), reflecting the
expectation of changing the amount provisioned throughout the regulatory process. In 2013, the
premise regarding the expectation of receiving saved and indemnified items was segregated
between IBNR and PSL;

- For other life insurance, the reserve for incurred but not reported (IBNR) claims is calculated
based on incurred but not paid (IBNP) claims less the balance of the reserve for unsettled claims
(PSL) on the calculation date. A final estimate of IBNP claims based on biannual run-off triangles
is prepared to calculate IBNP claims. The run-off triangles consider the historical development of
claims paid in the last 14 semesters to determine a future projection per occurrence period;

- The reserve for unsettled claims (PSL) considers all loss notices received up to the end of the
reporting period. The reserve is adjusted for inflation and includes all claims under litigation and
loss of suits costs;

- For non-life insurance, the reserve for unsettled claims (PSL) is determined based on the
indemnity payment estimates, considering all administrative and judicial claims existing at the
reporting date, net of the corresponding portion of the expectation of receiving saved and
indemnified items, including loss of suits costs;

- The reserve for related expenses (PDR) is recorded to cover estimated benefit and claims
expenses;

- The reserve for redemptions and other amounts to be settled (PVR) comprises figures related to
redemptions to settle and premium refund not yet paid;

- The complementary reserve for coverage (PCC) refers to the amount necessary to complement
technical reserves, as calculated through the Liability Adequacy Test (LAT), which is prepared
biannually using statistical and actuarial methods based on realistic considerations, taking into
account the biometric table BR-EMS of both genders, improvement of G Scale and forward
interest rate structures (ETTJ) free from risk and defined by Susep. The improvement rate is
calculated from automatic updates of the biometric table, considering the expected increase in
future life expectancy; and

- Other technical reserves are mainly recorded to cover differences between the premiums future
adjustments and the ones necessary to the technical balance of the healthcare plan individual
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 127
portfolio, adopting the formula included in the actuarial technical note approved by ANS, and the
discount rate based on the Bank’s own study.

? Pension plans and life insurance covering survival:

- The unrealized risk premiums (PPNG) is calculated on a daily prorated basis, using premiums
net of coinsurance assignment, but including reinsurance transfer operations, is comprised of the
portion corresponding to periods of risks not arising from insurance policies and includes an
estimate for risks in effect but not issued (RVNE);

- The mathematical reserve for unvested benefits (PMBaC) is recorded for participants who have
not yet received any benefit. In defined benefit pension plans, the reserve represents the
difference between the current value of future benefits and the current value of future
contributions, corresponding to obligations in the form of retirement, disability, pension and
annuity plans. The reserve is calculated using methodologies and assumptions set forth in the
actuarial technical notes;

- The mathematical reserve for unvested benefits related to life insurance and unrestricted benefit
pension plans (VGBL and PGBL), apart from the defined contribution plans, shows the value of
participant contributions, net of costs and other contractual charges, plus income from investment;

- The reserve for redemptions and other amounts to be settled (PVR) comprises figures related to
redemptions to settle, premium refund and portability requested not yet transferred to the
recipient;

- The mathematical reserve for vested benefits (PMBC) is recognized for participants already
benefiting and corresponds to the present value of future obligations related to the payment of
ongoing benefits;

- The complementary reserve for coverage (PCC) refers to the amount necessary to complement
technical reserves, as calculated through the Liability Adequacy Test (LAT), which is prepared
biannually using statistical and actuarial methods based on realistic considerations, taking into
account the biometric table BR-EMS of both genders, improvement of G Scale and forward
interest rate structures (ETTJ) free from risk and defined by Susep. The improvement rate is
calculated from automatic updates of the biometric table, considering the expected increase in
future life expectancy;

- The reserve for related expenses (PDR) is recorded to cover estimated benefit and claims
expenses;

- The reserve for financial surplus (PEF) corresponds to the portion of income from investment of
reserves that exceeds minimum returns from pension plans that have a financial surplus in the
participation clause;

- The reserve for technical surplus (PET) corresponds to the difference between the expected and
the actual amounts for events in the period for pension plans that have a technical surplus in the
participation clause;

- The reserve for incurred and not reported (IBNR) events is calculated based on run-off triangles,
which consider the history of losses reported in the last 84 months to set forth a future projection
by incurrence period;

- The reserve for unsettled claims (PSL) considers all loss notices received up to the end of the
reporting period. The reserve is adjusted for inflation and includes all claims under litigation and
loss of suit costs; and

- Other technical reserves (OTP) comprise the amounts required by Susep Circular Letter
n
o
462/13.

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

128 Report on Economic and Financial Analysis – June 2014
? Capitalization bonds:

- The mathematical reserve for capitalization bond (PMC) is recorded for each active or suspended
capitalization bond during the estimated term set forth in the general conditions of the plan, and
is calculated according to the methodology set forth in the actuarial technical notes;

- The reserve for redemption (PR) is recorded from capitalization bonds overdue or not yet due
where early redemption has been requested by the customer. Reserves are adjusted for inflation
based on the indexes provided in each plan;

- The reserve for draws not yet taken place (PSR) and the reserve for draws payable (PSP) are
recorded to cover premiums for future draws (not yet taken place) and also for prize money from
draws where customers have already been chosen (payable); and

- The reserve for administrative expense (PDA) is recorded to cover the plan’s expenses with
placement and disclosure, brokerage and others, and complies with the methodology established
in actuarial technical note.

Technical reserves are shown by account, product and segment, as well as amounts and details of
plan assets covering these technical reserves, and are shown in Note 21.

p) Provisions, contingent assets and liabilities and legal obligations - tax and social security

Provisions, contingent assets and liabilities, and legal obligations, as defined below, are recognized,
measured and disclosed in accordance with the criteria set out in CPC 25, approved by CMN Resolution
n
o
3823/09 and CVM Resolution n
o
594/09:

? Contingent assets: these are not recognized in the financial statements, except when Management
has control over the outcome or when there are real guarantees or favorable judicial decisions, to
which no further appeals are applicable, classifying the gain as practically certain by confirming the
expectation of receipt or compensation against another liability. Contingent assets with a chance of
probable success are disclosed in the notes to the financial statements;

? Provisions: these are recorded taking into consideration the opinion of legal counsel, the nature of
the lawsuits, similarity with previous lawsuits, complexity and positioning of the courts, whenever the
loss is deemed probable which would cause a probable outflow of funds to settle the obligation and
when amounts can be reliably measured;

? Contingent liabilities: according to CPC 25, the term “contingent” is used for liabilities that are not
recognized because their existence will only be confirmed by the occurrence of one or more uncertain
future events beyond Management’s control. Contingent liabilities considered as possible losses
should only be disclosed in the notes when relevant. Obligations deemed remote are not recorded
as a provision nor disclosed; and

? Legal obligations - provision for tax risks: results from judicial proceedings, being contested on the
grounds of legality or constitutionality, which, regardless of the assessment of the probability of
success, are fully recognized in the financial statements.

Details on lawsuits, as well as segregation and changes in amounts recorded, by type, are presented in
Note 18.

q) Funding expenses

Expenses related to funding transactions involving the issuance of securities are recognized in the profit
or loss over the term of the transaction and reduces the corresponding liability. They are presented in
Notes 16c and 19.

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 129
r) Other assets and liabilities

Assets are stated at their realizable amounts, including, when applicable, related income and monetary
and exchange variations (on a daily prorated basis), less provision for losses, when deemed appropriate.
Liabilities include known or measurable amounts, including related charges and monetary and exchange
variations (on a daily prorated basis).

s) Subsequent events

These refer to events occurring between the reporting date and the date the financial statements are
authorized to be issued.

They comprise the following:

? Events resulting in adjustments: events relating to conditions already existing at the end of the
reporting period; and
? Events not resulting in adjustments: events relating to conditions not existing at the end of the
reporting period.

Subsequent events, if any, are described in Note 35.

4) INFORMATION FOR COMPARISON PURPOSES

Reclassifications

There were no reclassifications or other relevant information for previous periods that affect the
comparability of the consolidated financial statements for the period ended June 30, 2014.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

130 Report on Economic and Financial Analysis – June 2014
5) STATEMENT OF FINANCIAL POSITION AND INCOME STATEMENT DEMONSTRATED BY OPERATING SEGMENT

a) Statement of financial position


R$ thousand
Financial (1) (2) Insurance Group (2) (3) Other Activities
(2)
Eliminations
(4)
Total
Consolidated Brazil Abroad Brazil Abroad
Assets
Current and long-term assets 707,050,430 92,799,851 165,522,601 2,315 2,219,896 (51,609,074) 915,986,019
Funds available 11,479,996 3,093,163 233,369 1,180 76,358 (3,349,464) 11,534,602
Interbank investments 135,479,561 2,174,114 - - - - 137,653,675
Securities and derivative financial instruments 166,112,420 13,084,470 154,025,641 1,040 1,465,326 (1,488,499) 333,200,398
Interbank and interdepartmental accounts 56,115,573 - - - - - 56,115,573
Loan and leasing 252,450,142 74,041,720 - - - (44,840,240) 281,651,622
Other receivables and assets 85,412,738 406,384 11,263,591 95 678,212 (1,930,871) 95,830,149
Permanent assets 63,825,928 35,413 3,674,710 150 662,712 (53,053,158) 15,145,755
Investments 53,611,194 - 1,287,568 134 41,009 (53,053,158) 1,886,747
Premises and equipment 3,513,780 11,938 992,319 16 60,854 - 4,578,907
Intangible assets 6,700,954 23,475 1,394,823 - 560,849 - 8,680,101
Total on June 30, 2014 770,876,358 92,835,264 169,197,311 2,465 2,882,608 (104,662,232) 931,131,774
Total on March 31, 2014 762,482,404 97,476,143 162,282,709 2,667 2,861,315 (102,876,485) 922,228,753
Total on June 30, 2013 744,706,198 90,148,233 155,703,103 3,953 1,908,754 (95,772,873) 896,697,368

Liabilities
Current and long-term liabilities 692,995,481 61,028,608 150,260,746 876 945,252 (51,609,074) 853,621,889
Deposits 186,949,638 29,769,852 - - - (3,448,957) 213,270,533
Federal funds purchased and securities sold under agreements to
repurchase
253,511,394 2,673,159 - - - (573,565) 255,610,988
Funds from issuance of securities 63,011,712 8,068,100 - - - (1,203,071) 69,876,741
Interbank and interdepartmental accounts 5,673,313 - - - - - 5,673,313
Borrowing and onlending 88,344,041 10,396,587 - - - (44,599,312) 54,141,316
Derivative financial instruments 2,795,539 1,931,026 - - - - 4,726,565
Technical reserves from insurance, pension plans and capitalization bonds - - 142,731,646 743 - - 142,732,389
Other liabilities:
- Subordinated debts 27,658,295 7,725,701 - - - - 35,383,996
- Other 65,051,549 464,183 7,529,100 133 945,252 (1,784,169) 72,206,048
Deferred income 223,400 - - - - - 223,400
Non-controlling interests in subsidiaries 857,199 31,806,656 18,936,565 1,589 1,937,356 (53,053,158) 486,207
Shareholders’ equity 76,800,278 - - - - - 76,800,278
Total on June 30, 2014 770,876,358 92,835,264 169,197,311 2,465 2,882,608 (104,662,232) 931,131,774
Total on March 31, 2014 762,482,404 97,476,143 162,282,709 2,667 2,861,315 (102,876,485) 922,228,753
Total on June 30, 2013 744,706,198 90,148,233 155,703,103 3,953 1,908,754 (95,772,873) 896,697,368
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 131
b) Income statement



R$ thousand
Financial (1) (2)
Insurance Group
(2) (3)
Other Activities
(2)
Eliminations
(4)
Total
Consolidated
Brazil Abroad Brazil Abroad
Revenues from financial intermediation 45,708,812 1,166,733 6,826,040 - 74,377 (370,159) 53,405,803
Expenses from financial intermediation 27,882,927 671,375 5,073,065 - - (370,177) 33,257,190
Gross income from financial intermediation 17,825,885 495,358 1,752,975 - 74,377 18 20,148,613
Other operating income/expenses (9,270,808) (22,093) 1,720,521 (20) 79,626 (18) (7,492,792)
Operating income 8,555,077 473,265 3,473,496 (20)
154,003
- 12,655,821
Non-operating income (223,803) 2,915 (21,055) - (2,096) - (244,039)
Income before taxes and non-controlling interest 8,331,274 476,180 3,452,441 (20) 151,907 - 12,411,782
Income tax and social contribution (3,780,661) (12,919) (1,287,272) (12) (50,906) - (5,131,770)
Non-controlling interests in subsidiaries (5,672) - (53,327) - (83) - (59,082)
Net income for the 1
st
semester of 2014
4,544,941 463,261 2,111,842 (32) 100,918 - 7,220,930
Net income for the 1
st
semester of 2013 3,097,591 858,095 1,862,079 (1,367) 51,440 - 5,867,838
Net income for the 2
nd
quarter of 2014
2,395,381 270,375 1,071,491 57 40,450 - 3,777,754
Net income for the 1
st
quarter of 2014 2,149,560 192,886 1,040,351 (89) 60,468 - 3,443,176

(1) The financial segment is comprised of financial institutions, holding companies—which are mainly responsible for managing financial resources, and credit card, consortium and asset management
companies;
(2) The asset, liability, income and expense balances among companies from the same segment are eliminated;
(3) The Insurance Group segment comprises insurance, pension plan and capitalization bond companies; and
(4) Refer to amounts eliminated among companies from different segments, as well as among operations carried out in Brazil and abroad.

6) CASH AND CASH EQUIVALENTS


R$ thousand
2014 2013
June 30 March 31 June 30
Cash and due from banks in domestic currency 7,650,892 7,249,718 11,618,039
Cash and due from banks in foreign currency 3,883,611 4,860,251 4,561,643
Investments in gold 99 98 93
Total cash and due from banks 11,534,602 12,110,067 16,179,775
Interbank investments (1) 122,380,067 112,799,928 91,817,543
Total cash and cash equivalents 133,914,669 124,909,995 107,997,318

(1) Refer to operations which mature 90 days or less from the date they were effectively invested and with insignificant risk of change in fair value.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

132 Report on Economic and Financial Analysis – June 2014
7) INTERBANK INVESTMENTS
a) Breakdown and maturity


R$ thousand
2014 2013

1 to 30
days
31 to 180
days
181 to 360
days
More than
360 days
June 30 March 31 June 30
Investments in federal funds
purchased and securities sold under
agreements to repurchase:
Own portfolio position 3,166,999 - - - 3,166,999 2,381,044 7,521,888
? National treasury notes 186,931 - - - 186,931 375,535 34,943
? National treasury bills 2,967,853 - - - 2,967,853 1,969,854 7,459,846
? Other 12,215 - - - 12,215 35,655 27,099
Funded position 118,408,807 3,089,275 - - 121,498,082 112,825,954 112,438,501
? Financial treasury bills 76,294 - - - 76,294 114,606 656,670
? National treasury notes 75,398,612 2,070,727 - - 77,469,339 82,300,503 96,005,941
? National treasury bills 42,933,901 1,018,548 - - 43,952,449 30,410,845 15,775,890
Short position 218,001 438,774 - - 656,775 534,457 19,829,523
? National treasury bills 218,001 438,774 - - 656,775 534,457 19,829,523
Subtotal 121,793,807 3,528,049 - - 125,321,856 115,741,455 139,789,912
Interest-earning deposits in other
banks:
? Interest-earning deposits in other banks 3,210,343 3,812,160 4,652,869 669,821 12,345,193 11,312,472 7,695,677
? Provision for losses (2,057) (3,111) (8,206) - (13,374) (39,906) (930)
Subtotal 3,208,286 3,809,049 4,644,663 669,821 12,331,819 11,272,566 7,694,747
Total on June 30, 2014 125,002,093 7,337,098 4,644,663 669,821 137,653,675
% 90.8 5.3 3.4 0.5 100.0
Total on March 31, 2014 118,351,059 5,257,676 2,711,411 693,875 127,014,021
% 93.2 4.1 2.1 0.6 100.0
Total on June 30, 2013 126,416,867 18,949,723 1,025,028 1,093,041 147,484,659
% 85.8 12.8 0.7 0.7 100.0

b) Income from interbank investments

Classified in the income statement as income on securities transactions.


R$ thousand
2014 2013

2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Income from investments in purchase and sale commitments:



• Own portfolio position 70,204 79,367 149,571 346,986
• Funded position 2,917,311 2,715,544 5,632,855 4,025,891
• Short position 27,508 120,712 148,220 3,488,534
Subtotal 3,015,023 2,915,623 5,930,646 7,861,411
Income from interest-earning deposits in other banks 198,976 128,668 327,644 256,967
Total (Note 8h) 3,213,999 3,044,291 6,258,290 8,118,378




Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 133
8) SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS
Information on securities and derivative financial instruments is as follows:
a) Summary of the consolidated classification of securities by operating segment and issuer

R$ thousand
2014 2013
Financial
Insurance/
Capitalization
bonds
Pension plans Other Activities June 30 % March 31 % June 30 %
Trading securities (5) 52,144,622 3,573,524 50,469,114 715,008 106,902,268 41.4 110,774,207 43.4 108,837,466 44.9
- Government securities 29,208,120 706,776 8,011 517,163 30,440,070 11.8 35,301,647 13.9 20,575,819 8.5
- Corporate securities 17,203,000 2,866,748 137,773 197,845 20,405,366 7.9 26,051,935 10.2 41,903,168 17.3
- Derivative financial instruments (1) 5,733,502 - - - 5,733,502 2.2 4,372,957 1.7 3,237,633 1.3
- PGBL/VGBL restricted bonds - - 50,323,330 - 50,323,330 19.5 45,047,668 17.6 43,120,846 17.8
Available-for-sale securities (4) (5) 107,908,861 9,816,621 9,984,073 53,820 127,763,375 49.4 121,094,631 47.4 129,897,824 53.6
- Government securities 58,666,845 8,070,744 8,237,657 2,771 74,978,017 29.0 75,121,878 29.4 108,401,488 44.7
- Corporate securities 49,242,016 1,745,877 1,746,416 51,049 52,785,358 20.4 45,972,753 18.0 21,496,336 8.9
Held-to-maturity securities (4) 36,757 4,166,630 19,590,162 - 23,793,549 9.2 23,528,116 9.2 3,793,131 1.5
- Government securities 36,757 4,166,630 19,590,162 - 23,793,549 9.2 23,528,116 9.2 3,793,131 1.5
Subtotal 160,090,240 17,556,775 80,043,349 768,828 258,459,192 100.0 255,396,954 100.0 242,528,421 100.0
Purchase and sale commitments (2) 18,239,202 7,326,105 49,086,468 89,431 74,741,206 66,573,426 66,498,553
Overall total 178,329,442 24,882,880 129,129,817 858,259 333,200,398 321,970,380 309,026,974
- Government securities 87,911,722 12,944,150 27,835,830 519,934 129,211,636 50.0 133,951,641 52.5 132,770,438 54.7
- Corporate securities 72,178,518 4,612,625 1,884,189 248,894 78,924,226 30.5 76,397,645 29.9 66,637,137 27.5
- PGBL/VGBL restricted bonds - - 50,323,330 - 50,323,330 19.5 45,047,668 17.6 43,120,846 17.8
Subtotal 160,090,240 17,556,775 80,043,349 768,828 258,459,192 100.0 255,396,954 100.0 242,528,421 100.0
Purchase and sale commitments (2) 18,239,202 7,326,105 49,086,468 89,431 74,741,206 66,573,426 66,498,553
Overall total 178,329,442 24,882,880 129,129,817 858,259 333,200,398 321,970,380 309,026,974

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

134 Report on Economic and Financial Analysis – June 2014
b) Breakdown of the consolidated portfolio by issuer
Securities (3)
R$ thousand
2014 2013
June 30 March 31 June 30
1 to 30
days
31 to 180
days
181 to 360
days
More than
360 days
Fair/book
value
(6) (7) (8)
Original
amortized
cost
Mark-
to-
market
Fair/book
value
(6) (7) (8)
Mark-
to-
market
Fair/book
value
(6) (7) (8)
Mark-
to-
market
Government securities 269,671 5,189,127 10,261,478 113,491,360 129,211,636 129,185,463 26,173 133,951,641 (1,906,165) 132,770,438 (1,904,768)
Financial treasury bills 81,973 1,174,066 1,440,483 6,952,607 9,649,129 9,647,929 1,200 11,942,762 4,161 7,009,615 1,146
National treasury bills 94,403 10,002 6,592,322 18,486,857 25,183,584 25,889,346 (705,762) 28,101,159 (1,055,663) 31,136,033 (905,129)
National treasury notes 67,720 3,984,699 2,228,673 87,687,033 93,968,125 93,275,385 692,740 93,558,686 (889,744) 94,326,447 (1,031,672)
Brazilian foreign debt notes 11,120 - - 302,626 313,746 299,029 14,717 264,992 12,024 160,237 9,247
Privatization currencies - - - 62,237 62,237 51,575 10,662 63,052 10,899 69,604 11,741
Other 14,455 20,360 - - 34,815 22,199 12,616 20,990 12,158 68,502 9,899
Private securities 17,343,277 5,560,836 4,047,137 51,972,976 78,924,226 78,547,008 377,218 76,397,645 26,079 66,637,137 (1,091,165)
Bank deposit certificates 146,649 629,835 19,709 74,914 871,107 871,107 - 1,004,165 - 1,401,686 -
Shares (9) 5,942,454 - - - 5,942,454 5,991,587 (49,133) 5,702,062 300,144 4,487,032 (1,211,411)
Debentures 143,807 3,017,413 1,533,088 28,742,479 33,436,787 33,572,437 (135,650) 33,638,779 (123,748) 30,790,387 (58,667)
Promissory notes 200,059 783,914 - - 983,973 992,424 (8,451) 745,968 (3,743) 1,058,120 (838)
Foreign corporate securities 125,462 14,424 442,009 8,000,975 8,582,870 8,463,009 119,861 8,856,829 (42,974) 8,884,754 (328,112)
Derivative financial instruments (1) 4,140,238 365,114 228,075 1,000,075 5,733,502 5,096,619 636,883 4,372,957 279,363 3,237,633 406,021
Other 6,644,608 750,136 1,824,256 14,154,533 23,373,533 23,559,825 (186,292) 22,076,885 (382,963) 16,777,525 101,842
PGBL/VGBL restricted bonds 3,265,713 14,972,603 5,474,241 26,610,773 50,323,330 50,323,330 - 45,047,668 - 43,120,846 -
Subtotal 20,878,661 25,722,566 19,782,856 192,075,109 258,459,192 258,055,801 403,391 255,396,954 (1,880,086) 242,528,421 (2,995,933)
Purchase and sale commitments (2) 74,741,206 - - - 74,741,206 74,741,206 - 66,573,426 - 66,498,553 -
Hedge - cash flow (Note 8g) - - - - - - (20,725) - 269,156 - (7,045)
Securities reclassified to “Held-to-maturity
securities” (4) - - - - - - 407,385 - 443,371 - -
Overall total 95,619,867 25,722,566 19,782,856 192,075,109 333,200,398 332,797,007 790,051 321,970,380 (1,167,559) 309,026,974 (3,002,978)


Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 135
c) Consolidated classification by category, maturity and operating segment

I) Trading securities

Securities (3)

R$ thousand
2014 2013
June 30 March 31 June 30
1 to 30
days
31 to 180
days
181 to 360
days
More than
360 days
Fair/book
value
(6) (7) (8)
Original
amortized
cost
Mark-
to-
market
Fair/book
value
(6) (7) (8)
Mark-
to-
market
Fair/book
value
(6) (7) (8)
Mark-
to-
market
- Financial (5) 10,082,104 7,214,804 8,218,259 26,629,455 52,144,622 51,382,474 762,148 60,885,211 274,591 60,697,211 158,625
National treasury bills 31,331 7,659 4,140,739 556,197 4,735,926 4,736,646 (720) 8,319,114 (11,211) 2,912,987 (34,064)
Financial treasury bills 81,973 826,251 999,708 6,202,218 8,110,150 8,109,121 1,029 9,962,498 3,919 5,146,997 656
Bank deposit certificates 59,526 521,083 19,580 18,638 618,827 618,827 - 682,302 - 834,733 -
Derivative financial instruments (1) 4,140,238 365,114 228,075 1,000,075 5,733,502 5,096,619 636,883 4,372,957 279,363 3,237,633 406,021
Debentures 18,939 2,260,502 331,281 3,861,241 6,471,963 6,531,345 (59,382) 12,735,928 (71,418) 27,896,986 (81,400)
Promissory notes 78,768 75,044 - - 153,812 154,188 (376) 223,016 (958) 1,052,960 (837)
National treasury notes 2,386 2,804,551 1,219,548 12,314,946 16,341,431 16,130,841 210,590 15,347,683 83,095 11,007,259 (130,126)
Other 5,668,943 354,600 1,279,328 2,676,140 9,979,011 10,004,887 (25,876) 9,241,713 (8,199) 8,607,656 (1,625)
- Insurance companies and
capitalization bonds 1,167,055 631,136 274,665 1,500,668 3,573,524 3,569,537 3,987 3,992,001 1,827 3,897,427 7,249
Financial treasury bills - 144,089 187,657 358,435 690,181 690,181 - 1,104,815 - 1,241,984 -
National treasury bills - - 12,154 4,017 16,171 16,171 - 12,597 - 8,452 -
Bank deposit certificates 1,213 108,295 - 17,767 127,275 127,275 - 130,434 - 126,483 -
National treasury notes - 424 - - 424 424 - 9,288 - 2,156 -
Debentures - 5,133 - 126,804 131,937 131,937 - 132,698 - 127,646 -
Other 1,165,842 373,195 74,854 993,645 2,607,536 2,603,549 3,987 2,602,169 1,827 2,390,706 7,249
- Pension plans 3,327,155 14,980,323 5,474,241 26,687,395 50,469,114 50,469,114 - 45,192,882 - 43,864,766 649
PGBL/VGBL restricted bonds 3,265,713 14,972,603 5,474,241 26,610,773 50,323,330 50,323,330 - 45,047,668 - 43,120,846 -
Other 61,442 7,720 - 76,622 145,784 145,784 - 145,214 - 743,920 649
- Other activities 135,352 125,625 134,665 319,366 715,008 715,008 - 704,113 - 378,062 -
Financial treasury bills - 87,516 87,430 243,518 418,464 418,464 - 445,867 - 169,543 -
Bank deposit certificates 5,116 457 129 8 5,710 5,710 - 20,376 - 31,972 -
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

136 Report on Economic and Financial Analysis – June 2014
Securities (3)

R$ thousand
2014 2013
June 30 March 31 June 30
1 to 30
days
31 to 180
days
181 to 360
days
More than
360 days
Fair/book
value
(6) (7) (8)
Original
amortized
cost
Mark-
to-
market
Fair/book
value
(6) (7) (8)
Mark-
to-
market
Fair/book
value
(6) (7) (8)
Mark-
to-
market
National treasury bills 10,095 2,344 20,926 - 33,365 33,365 - 25,043 - 9,818 -
Debentures 3,904 1,314 324 35,289 40,831 40,831 - 52,900 - 20,795 -
Other 116,237 33,994 25,856 40,551 216,638 216,638 - 159,927 - 145,934 -
Subtotal 14,711,666 22,951,888 14,101,830 55,136,884 106,902,268 106,136,133 766,135 110,774,207 276,418 108,837,466 166,523
Purchase and sale commitments (2) 74,506,700 - - - 74,506,700 74,506,700 - 66,405,750 - 66,387,014 -
Financial/other 18,328,633 - - - 18,328,633 18,328,633 - 10,968,541 - 17,502,100 -
Insurance companies and capitalization
bonds 7,219,747 - - - 7,219,747 7,219,747 - 3,433,133 - 3,165,942 -
Pension plans 48,958,320 - - - 48,958,320 48,958,320 - 52,004,076 - 45,718,972 -
- PGBL/VGBL 47,786,715 - - - 47,786,715 47,786,715 - 49,282,052 - 44,797,390 -
- Funds 1,171,605 - - - 1,171,605 1,171,605 - 2,722,024 - 921,582 -
Overall total 89,218,366 22,951,888 14,101,830 55,136,884 181,408,968 180,642,833 766,135 177,179,957 276,418 175,224,480 166,523
Derivative financial instruments
(liabilities) (3,545,526) (249,043) (190,944) (741,052) (4,726,565) (4,442,480) (284,085) (3,893,863) (155,967) (3,140,573) (293,996)

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 137
II) Available-for-sale securities

Securities (3) (10)
R$ thousand
2014 2013
June 30 March 31 June 30
1 to 30
days
31 to 180
days
181 to 360
days
More than
360 days
Fair/book
value
(6) (7) (8)
Original
amortized
cost
Mark-
to-
market
Fair/book
value
(6) (7) (8)
Mark-
to-
market
Fair/book
value
(6) (7) (8)
Mark-
to-
market
- Financial (5) 2,832,076 2,063,151 5,129,411 97,884,223 107,908,861 108,342,449 (433,588) 101,808,234 (1,453,894) 88,678,564 (3,761,964)
National treasury bills 52,978 - 2,418,503 17,926,642 20,398,123 21,103,165 (705,042) 19,744,405 (1,044,452) 28,204,774 (871,066)
Brazilian foreign debt notes 11,120 - - 265,869 276,989 262,272 14,717 228,335 12,024 114,151 9,247
Foreign corporate securities 124,470 14,424 430,313 7,946,145 8,515,352 8,395,351 120,001 8,856,250 (42,970) 8,875,067 (328,118)
National treasury notes - 530,639 457,510 36,575,762 37,563,911 37,134,852 429,059 38,481,837 (330,516) 41,764,409 (2,443,914)
Financial treasury bills - 81,680 165,690 104,029 351,399 351,245 154 348,682 198 384,394 395
Bank deposit certificates 55,696 - - 38,502 94,198 94,198 - 143,356 - 402,501 -
Debentures 120,964 718,846 1,201,483 24,547,705 26,588,998 26,697,335 (108,337) 20,518,175 (80,932) 2,494,650 (8,357)
Shares (9) 2,330,851 - - - 2,330,851 2,385,820 (54,969) 2,730,646 347,421 730,993 (262,315)
Other 135,997 717,562 455,912 10,479,569 11,789,040 11,918,211 (129,171) 10,756,548 (314,667) 5,707,625 142,164
- Insurance companies and
capitalization bonds (4) 1,668,801 683,894 306,948 7,156,978 9,816,621 10,393,814 (577,193) 10,001,678 (914,947) 14,877,373 (1,198,156)
National treasury notes - 649,085 306,948 7,100,708 8,056,741 8,600,219 (543,478) 8,340,967 (816,540) 13,160,901 (876,624)
Shares 1,660,645 - - - 1,660,645 1,689,939 (29,294) 1,566,712 (91,455) 1,573,349 (325,157)
Debentures - 20,806 - 50,906 71,712 52,690 19,022 67,787 17,042 122,195 18,189
Other 8,156 14,003 - 5,364 27,523 50,966 (23,443) 26,212 (23,994) 20,928 (14,564)
- Pension plans (4) 1,636,503 23,633 - 8,323,937 9,984,073 9,340,536 643,537 9,194,508 207,487 26,329,512 1,797,664
Shares 1,622,865 - - - 1,622,865 1,585,283 37,582 1,179,048 26,114 1,500,326 (630,182)
National treasury notes - - - 8,183,492 8,183,492 7,586,922 596,570 7,828,166 174,216 24,630,297 2,418,343
Debentures - 10,813 - 99,100 109,913 96,866 13,047 118,424 11,560 126,509 12,902
Other 13,638 12,820 - 41,345 67,803 71,465 (3,662) 68,870 (4,403) 72,380 (3,399)
- Other activities 29,615 - - 24,205 53,820 49,320 4,500 90,211 4,850 12,375 -
Bank deposit certificates 25,098 - - - 25,098 25,098 - 27,697 - 5,995 -
Other 4,517 - - 24,205 28,722 24,222 4,500 62,514 4,850 6,380 -
Subtotal 6,166,995 2,770,678 5,436,359 113,389,343 127,763,375 128,126,119 (362,744) 121,094,631 (2,156,504) 129,897,824 (3,162,456)
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

138 Report on Economic and Financial Analysis – June 2014
Securities (3) (10)
R$ thousand
2014 2013
June 30 March 31 June 30
1 to 30
days
31 to 180
days
181 to 360
days
More than
360 days
Fair/book
value
(6) (7) (8)
Original
amortized
cost
Mark-
to-
market
Fair/book
value
(6) (7) (8)
Mark-
to-
market
Fair/book
value
(6) (7) (8)
Mark-
to-
market
Purchase and sale commitments
(2) 66,145 - - - 66,145 66,145 - 58,574 - 111,539 -
Insurance companies and
capitalization bonds 28,516 - - - 28,516 28,516 - 44,871 - 3,934 -
Pension plans 37,629 - - - 37,629 37,629 - 13,703 - 107,605 -
Subtotal 6,233,140 2,770,678 5,436,359 113,389,343 127,829,520 128,192,264 (362,744) 121,153,205 (2,156,504) 130,009,363 (3,162,456)
Hedge - cash flow (Note 8g) - - - - - - (20,725) - 269,156 - (7,045)
Securities reclassified to “Held-to-
maturity securities“ (4) - - - - - - 407,385 - 443,371 - -
Overall total 6,233,140 2,770,678 5,436,359 113,389,343 127,829,520 128,192,264 23,916 121,153,205 (1,443,977) 130,009,363 (3,169,501)

III) Held-to-maturity securities

Securities (3)
R$ thousand
2014 2013
June 30 March 31 June 30
1 to 30
days
31 to 180
days
181 to 360
days
More than
360 days
Original
amortized cost
(6) (7)
Original
amortized cost
(6) (7)
Original
amortized cost
(6) (7)
Financial - - - 36,757 36,757 36,657 46,086
Brazilian foreign debt notes - - - 36,757 36,757 36,657 46,086
Insurance companies and capitalization bonds - - - 4,166,630 4,166,630 4,017,513 -
National treasury notes - - - 4,166,630 4,166,630 4,017,513 -
Pension plans - - 244,667 19,345,495 19,590,162 19,473,946 3,747,045
National treasury notes - - 244,667 19,345,495 19,590,162 19,473,946 3,747,045
Subtotal - - 244,667 23,548,882 23,793,549 23,528,116 3,793,131
Purchase and sale commitments (2) 168,361 - - - 168,361 109,102
-
Insurance companies and capitalization bonds 77,842 - - - 77,842 68,676
-
Pension plans 90,519 - - - 90,519 40,426
-
Overall total (4) 168,361 - 244,667 23,548,882 23,961,910 23,637,218 3,793,131
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 139
d) Breakdown of the portfolios by financial statement classification

Securities
R$ thousand
2014 2013
1 to 30
days
31 to 180
days
181 to 360
days
More than
360 days
Total on
June 30
(3) (6) (7) (8)
Total on
March 31
(3) (6) (7) (8)
Total on
June 30
(3) (6) (7) (8)
Own portfolio 91,436,856 21,783,937 15,420,890 123,221,200 251,862,883 236,041,913 217,978,325
Fixed income securities 85,494,402 21,783,937 15,420,890 123,221,200 245,920,429 230,339,851 213,491,293
? Financial treasury bills 81,973 935,711 933,491 2,443,642 4,394,817 4,447,730 4,902,311
? National treasury notes 67,720 649,539 551,820 45,014,285 46,283,364 41,533,689 42,494,397
? Brazilian foreign debt securities 11,120 - - 302,626 313,746 264,992 160,237
? Bank deposit certificates 146,649 629,835 19,709 74,914 871,107 1,004,165 1,401,686
? National treasury bills 94,403 10,002 4,642,276 765,609 5,512,290 7,027,383 1,888,855
? Foreign corporate securities 89,720 14,424 442,009 5,133,773 5,679,926 7,977,571 4,329,874
? Debentures 143,807 3,017,413 1,533,088 28,721,045 33,415,353 33,625,914 30,790,387
? Purchase and sale commitments (2) 74,741,206 - - - 74,741,206 66,573,426 66,498,553
? PGBL/VGBL restricted bonds 3,265,713 14,972,603 5,474,241 26,610,773 50,323,330 45,047,668 43,120,846
? Other 6,852,091 1,554,410 1,824,256 14,154,533 24,385,290 22,837,313 17,904,147
Equity securities 5,942,454 - - - 5,942,454 5,702,062 4,487,032
? Shares of listed companies (technical reserve) 1,925,663 - - - 1,925,663 1,495,226 1,775,308
? Shares of listed companies (other) (9) 4,016,791 - - - 4,016,791 4,206,836 2,711,724
Restricted securities 42,773 3,573,515 4,133,891 66,774,362 74,524,541 81,248,082 86,363,999
Repurchase agreements 35,742 3,356,568 3,627,793 59,488,323 66,508,426 74,402,193 76,361,630
? National treasury bills - - 1,940,620 12,247,959 14,188,579 16,447,494 20,384,734
? Financial treasury bills - 21,408 10,320 2,594,008 2,625,736 5,057,592 355,340
? National treasury notes - 3,335,160 1,676,853 41,757,720 46,769,733 52,004,984 51,066,676
? Foreign corporate securities 35,742 - - 2,867,202 2,902,944 879,258 4,554,880
? Debentures - - - 21,434 21,434 12,865 -
Brazilian Central Bank - - - 19,008 19,008 2,694 47,224
? National treasury bills - - - 19,008 19,008 - -
? National treasury notes - - - - - 2,694 47,224
Privatization currencies - - - 62,237 62,237 63,052 69,604
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

140 Report on Economic and Financial Analysis – June 2014
Securities
R$ thousand
2014 2013
1 to 30
days
31 to 180
days
181 to 360
days
More than
360 days
Total on
June 30
(3) (6) (7) (8)
Total on
March 31
(3) (6) (7) (8)
Total on
June 30
(3) (6) (7) (8)
Guarantees provided 7,031 216,947 506,098 7,204,794 7,934,870 6,780,143 9,885,541
? National treasury bills - - 9,426 5,136,209 5,145,635 4,318,854 7,415,427
? Financial treasury bills - 216,947 496,672 1,914,957 2,628,576 2,437,440 1,751,964
? Other 7,031 - - 153,628 160,659 23,849 718,150
Derivative financial instruments (1) 4,140,238 365,114 228,075 1,000,075 5,733,502 4,372,957 3,237,633
Securities subject to unrestricted repurchase agreements - - - 1,079,472 1,079,472 307,428 1,447,017
? National treasury bills - - - 318,072 318,072 307,428 1,447,017
? National treasury notes - - - 761,400 761,400 - -
Overall total 95,619,867 25,722,566 19,782,856 192,075,109 333,200,398 321,970,380 309,026,974
% 28.7 7.7 5.9 57.7 100.0 100.0 100.0

(1) Consistent with the criterion adopted by Bacen Circular Letter n
o
3068/01 and due to the characteristics of the securities, we are considering the derivative financial instruments, except those considered
as cash flow hedges under the category Trading Securities;
(2) These refer to investment fund resources and managed portfolios applied on purchase and sale commitments with Bradesco, whose owners are consolidated subsidiaries, included in the consolidated
financial statements;
(3) The investment fund quotas were distributed according to the instruments composing their portfolios and maintaining the fund category classification;
(4) In compliance with Article 8 of Bacen Circular Letter n
o
3068/01, Bradesco declares that it has financial capacity and intention to maintain held-to-maturity securities up to their maturity dates. This financial
capacity is proven in Note 32a, which presents the maturity of asset and liability operations. In December 2013, the mark-to-market of securities reclassified from the "Available-for-Sale Securities"
category to the " Held-to-Maturity Securities" category is maintained under Shareholders' Equity, and is being recognized in income statement for the remaining term of the securities, pursuant to Bacen
Circular Letter n
o
3068/01;
(5) In June 2014, the amount of R$ 4,571,838 thousand was reclassified from “Held-for-trading securities” to “Available-for-sale securities”;
(6) The number of days to maturity was based on the maturity of the instruments, regardless of their accounting classification;
(7) This column reflects book value after mark-to-market accounting in accordance with item (8), except for held-to-maturity instruments, whose fair value is higher than the original amortized cost for the
amount of R$ 2,190,319 thousand (R$ 1,184,811 thousand on March 31, 2014 and R$ 1,834,739 thousand on June 30, 2013);
(8) The fair value of securities is determined based on the market price available at the end of the reporting period. If no market price quotation is available at the end of the reporting period, amounts are
estimated based on the prices quoted by dealers, pricing models, quotation models or price quotations for instruments with similar characteristics; for investment funds, the original amortized cost reflects
the fair value of the respective quotas. For investment funds, the original amortized cost reflects the fair value of the respective quotas;
(9) Includes shares of Banco Espírito Santo S.A. (BES), represented by the 3.9% participation in its capital, whose restated cost amounts to R$ 593,950 thousand (R$ 573,661 thousand on March 31, 2014
and R$ 530,454 thousand on June 30, 2013), and the corresponding market-to-market adjustment in R$ (194,634) thousand (R$ 248,697 thousand on March 31, 2014, and R$ (186,335) thousand on
June 30, 2013). In the coming months, as occurs in other financial and non-financial assets, Bradesco will be evaluating the future development of the market value of this asset, in order to determine
whether an impairment has occurred (Note 3m); and
(10) In the 1
st
semester of 2014 and 2013 there were no losses by impairment under the heading "equity securities", for the securities classified under the category "Available-for-sale securities".





Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements


Bradesco 141
e) Derivative financial instruments
Bradesco carries out transactions involving derivative financial instruments, which are recorded in the
statement of financial position or in off-balance-sheet accounts, to meet its own needs in managing its
global exposure, as well as to meet its customer’s requests, in order to manage their exposure. These
operations involve a series of derivatives, including interest rate swaps, currency swaps, futures and
options. Bradesco’s risk management policy is based on the utilization of derivative financial instruments
mainly to mitigate the risks from operations carried out by the Bank and its subsidiaries.
Securities classified as trading and available-for-sale, as well as derivative financial instruments, are
recognized in the consolidated statement of financial position at their estimated fair value. Fair value is
generally based on quoted market prices or quotations for assets or liabilities with similar characteristics.
Should market prices not be available, fair values are based on dealer quotations, pricing models,
discounted cash flows or similar techniques for which the determination of fair value may require
judgment or significant estimates by Management.
Quoted market prices are used to determine the fair value of derivative financial instruments. The fair
value of swaps is determined by using discounted cash flow modeling techniques that use yield curves,
reflecting adequate risk factors. The information to build yield curves is mainly obtained from the
Securities, Commodities and Futures Exchange (BM&FBOVESPA) and the domestic and international
secondary market. These yield curves are used to determine the fair value of currency swaps, interest
rate and other risk factor swaps. The fair value of forward and futures contracts is also determined based
on market price quotations for derivatives traded at the stock exchange or using methodologies similar
to those outlined for swaps. The fair values of loan derivative instruments are determined based on
market price quotation or from specialized entities. The fair value of options is determined based on
mathematical models, such as Black & Scholes, using yield curves, implied volatilities and the fair value
of corresponding assets. Current market prices are used to calculate volatility.
Derivative financial instruments in Brazil mainly refer to swap and futures operations and are registered
at the OTC Clearing House (Cetip) and BM&FBOVESPA.
Operations involving forward contracts of indexes and currencies are contracted by Management to
hedge Bradesco’s overall exposures and to meet customer needs.
Foreign derivative financial instruments refer to swap, forward, options, credit and futures operations
and are mainly carried out at the stock exchanges in Chicago and New York, as well as the over-the-
counter (OTC) markets.

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

142 Report on Economic and Financial Analysis – June 2014
I) Amount of derivative financial instruments recorded in balance sheet and off-balance-sheet
accounts


R$ thousand
2014 2013
June 30 March 31 June 30
Overall
amount
Net amount
Overall
amount
Net amount
Overall
amount
Net amount
Futures contracts
Purchase commitments: 47,729,644 53,172,445 196,616,218
- Interbank market 34,923,191 - 39,923,775 - 185,532,147 -
- Foreign currency 12,460,660 - 13,157,160 - 11,034,161 -
- Other 345,793 - 91,510 - 49,910 -
Sale commitments: 172,489,277 83,728,418 341,422,889
- Interbank market (1) 144,175,395 109,252,204 55,682,741 15,758,966 297,055,555 111,523,408
- Foreign currency (2) 27,925,679 15,465,019 27,887,625 14,730,465 44,218,058 33,183,897
- Other 388,203 42,410 158,052 66,542 149,276 99,366

Option contracts
Purchase commitments: 183,084,853 113,588,878 90,312,574
- Interbank market 174,189,300 - 107,447,000 - 89,252,700 -
- Foreign currency 8,438,490 - 5,318,145 - 548,201 -
- Other 457,063 308,760 823,733 297,317 511,673 141,128
Sale commitments: 192,330,117 124,656,009 96,395,214
- Interbank market 182,179,923 7,990,623 116,216,213 8,769,213 94,879,622 5,626,922
- Foreign currency 10,001,891 1,563,401 7,913,380 2,595,235 1,145,047 596,846
- Other 148,303 - 526,416 - 370,545 -

Forward contracts
Purchase commitments: 8,182,654 11,153,831 23,085,324
- Foreign currency 7,196,046 - 10,627,591 2,207,146 22,605,990 11,547,741
- Other 986,608 404,419 526,240 102,346 479,334 -
Sale commitments: 8,213,166 8,844,339 11,539,330
- Foreign currency 7,630,977 434,931 8,420,445 - 11,058,249 -
- Other 582,189 - 423,894 - 481,081 1,747

Swap contracts
Assets (long position): 54,450,528 54,981,579 46,696,235
- Interbank market 11,052,842 - 11,398,956 452,971 10,671,693 1,843,102
- Fixed rate 6,364,785 3,196,915 5,759,545 2,775,745 4,087,314 1,326,802
- Foreign currency 31,596,018 777,860 25,150,383 - 24,296,479 -
- IGP-M 1,529,877 - 1,428,579 - 1,206,371 -
- Other 3,907,006 - 11,244,116 - 6,434,378 -
Liabilities (short position): 53,598,476 54,514,974 46,250,410
- Interbank market 13,267,339 2,214,497 10,945,985 - 8,828,591 -
- Fixed rate 3,167,870 - 2,983,800 - 2,760,512 -
- Foreign currency 30,818,158 - 26,939,690 1,789,307 25,827,340 1,530,861
- IGP-M 2,217,591 687,714 2,194,830 766,251 2,335,778 1,129,407
- Other 4,127,518 220,512 11,450,669 206,553 6,498,189 63,811

Derivatives include operations maturing in D+1.

(1) Includes cash flow hedges to protect CDI-related funding, for the amount of R$ 20,440,070 thousand (R$ 19,630,750 thousand on
March 31, 2014 and R$ 17,479,586 thousand on June 30, 2013) (Note 8g); and
(2) Includes specific hedges to protect foreign investments totaling R$ 31,850,766 thousand (R$ 28,375,218 thousand on March 31, 2014
and R$ 25,216,431 thousand on June 30, 2013).

To obtain greater payment assurance for operations with financial institutions and customers, Bradesco
established compensation and settlement agreements for liabilities within the National Financial System, in
accordance with CMN Resolution n
o
3263/05.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 143
II) Breakdown of derivative financial instruments (assets and liabilities) shown at original amortized cost and fair value


R$ thousand
2014 2013
June 30 March 31 June 30
Original
amortized cost
Mark-to-market
adjustment
Fair value
Original
amortized cost
Mark-to-market
adjustment
Fair value
Original
amortized cost
Mark-to-market
adjustment
Fair value
Adjustment receivables - swaps 3,138,947 682,032 3,820,979 2,842,785 277,862 3,120,647 1,253,464 408,380 1,661,844
Receivable forward purchases 1,098,271 - 1,098,271 755,171 - 755,171 1,135,483 - 1,135,483
Receivable forward sales 705,931 - 705,931 403,170 - 403,170 395,778 - 395,778
Premiums on exercisable options 153,470 (45,149) 108,321 92,468 1,501 93,969 46,887 (2,359) 44,528
Total assets 5,096,619 636,883 5,733,502 4,093,594 279,363 4,372,957 2,831,612 406,021 3,237,633
Adjustment payables - swaps (2,616,028) (352,899) (2,968,927) (2,453,263) (200,778) (2,654,041) (928,184) (287,835) (1,216,019)
Payable forward purchases (1,114,982) - (1,114,982) (752,287) - (752,287) (385,462) - (385,462)
Payable forward sales (459,202) - (459,202) (322,802) - (322,802) (1,423,146) - (1,423,146)
Premiums on written options (252,268) 68,814 (183,454) (209,544) 44,811 (164,733) (109,785) (6,161) (115,946)
Total liabilities (4,442,480) (284,085) (4,726,565) (3,737,896) (155,967) (3,893,863) (2,846,577) (293,996) (3,140,573)

III) Futures, options, forward and swap contracts - (Notional)


R$ thousand
2014 2013
1 to 90
days
91 to 180
days
181 to 360
days
More than
360 days
Total on
June 30
Total on
March 31
Total on
June 30
Futures contracts 36,797,805 85,281,544 70,307,177 27,832,395 220,218,921 136,900,863 538,039,107
Option contracts 239,060,410 15,237,143 120,656,265 461,152 375,414,970 238,244,887 186,707,788
Forward contracts 9,207,311 3,337,619 2,102,469 1,748,421 16,395,820 19,998,170 34,624,654
Swap contracts 11,727,269 15,347,456 4,175,957 19,378,867 50,629,549 51,860,932 45,034,391
Total on June 30, 2014 296,792,795 119,203,762 197,241,868 49,420,835 662,659,260
Total on March 31, 2014 69,384,342 242,160,798 56,958,455 78,501,257 447,004,852
Total on June 30, 2013 226,219,873 49,004,397 341,874,692 187,306,978 804,405,940


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Notes to the Consolidated Financial Statements

144 Report on Economic and Financial Analysis – June 2014
IV) Types of margin offered for guarantee for derivative financial instruments, mainly futures
contracts


R$ thousand
2014 2013
June 30 March 31 June 30
Government securities
National treasury notes 123,655 - 691,568
Financial treasury bills 5,126 6,281 7,837
National treasury bills 3,707,271 3,271,471 6,477,872
Total 3,836,052 3,277,752 7,177,277

V) Revenues and expenses, net


R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Swap contracts (78,685) (408,459) (487,144) 595,677
Forward contracts (18,414) (153,911) (172,325) 287,512
Option contracts (17,653) 10,623 (7,030) (267,124)
Futures contracts 892,459 907,329 1,799,788 (2,432,512)
Foreign exchange variation of investments abroad (237,631) (222,032) (459,663) 212,608
Total 540,076 133,550 673,626 (1,603,839)

VI) Total value of derivative financial instruments, by trading location and counterparties


R$ thousand
2014 2013
June 30 March 31 June 30
Cetip (over-the-counter) 52,290,779 55,101,366 51,097,837
BM&FBOVESPA (stock exchange) 577,001,960 357,719,400 707,114,043
Abroad (over-the-counter) (1) 17,276,135 18,358,656 30,006,844
Abroad (stock exchange) (1) 16,090,386 15,825,430 16,187,216
Total 662,659,260 447,004,852 804,405,940

(1) Comprised of operations carried out on the Chicago and New York Stock Exchanges and over-the-counter markets.

As of June 30, 2014, a total of 94.6% of counterparties are corporate entities and 5.4% are financial
institutions.
f) Credit Default Swaps (CDS)
Overall, they represent a bilateral contract in which one of the counterparties purchases protection
against credit risk of a particular financial instrument (the risk is transferred). The selling counterparty
receives remuneration that is usually paid linearly over the term of the agreement.
In case of a default, the purchasing counterparty will receive a payment to offset the loss incurred on
the financial instrument. In this case, the selling counterparty usually receives the underlying asset of
the agreement in exchange for the payment.
Bradesco carried out operations involving credit derivatives to better manage its risk exposure and its
assets. As of June 30, 2014, it did not have credit derivative agreements.

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements


Bradesco 145


g) Cash flow hedge
Bradesco uses cash flow hedges to protect its cash flows from payment of interest rates on funds,
related to floating interest rate risk of Interbank Deposit Rate (DI Cetip), thus registering fixed cash
flows.
Bradesco has traded DI Future contracts at BM&FBOVESPA since 2009, using them as cash flow
hedges for funding linked to DI. The following table presents the DI Future position, where:

R$ thousand
2014 2013
June 30 March 31 June 30
DI Future with maturity between 2015 and 2017 20,440,070 19,630,750 17,479,586
Funding indexed to CDI 20,290,694 19,788,753 17,170,617
Mark-to-market adjustment recorded in shareholders’ equity (1) (20,725) 269,156 (7,045)
Ineffective fair value recorded in profit or loss - 140 -

(1) The adjustment in shareholders’ equity is R$ (12,435) thousand, net of taxes (R$ 161,494 thousand on March 31, 2014 and R$ (4,227)
thousand on June 30, 2013).

The effectiveness of the hedge portfolio was assessed in accordance with Bacen Circular Letter
n
o
3082/02.
h) Income from securities, insurance, pension plans and capitalization bonds and derivative
financial instruments

R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Fixed income securities 4,803,214 4,187,245 8,990,459 5,678,322
Interbank investments (Note 7b) 3,213,999 3,044,291 6,258,290 8,118,378
Equity securities 1,496 (164) 1,332 25,465
Subtotal 8,018,709 7,231,372 15,250,081 13,822,165
Income from insurance, pension plans and capitalization bonds 3,564,421 3,263,448 6,827,869 3,746,383
Income from derivative financial instruments (Note 8e V) 540,076 133,550 673,626 (1,603,839)
Total 12,123,206 10,628,370 22,751,576 15,964,709











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Notes to the Consolidated Financial Statements

146 Report on Economic and Financial Analysis – June 2014
9) INTERBANK ACCOUNTS - RESERVE REQUIREMENT
a) Reserve requirement

R$ thousand
Remuneration
2014 2013
June 30 March 31 June 30
Reserve requirement – demand deposits not remunerated 5,054,725 6,949,702 7,467,661
Reserve requirement – savings deposits savings index 16,742,086 16,339,408 14,387,520
Reserve requirement – time deposits Selic rate 12,472,422 14,789,408 10,533,404
Collection of funds from rural loan (1) not remunerated - - 536
Additional reserve requirement Selic rate 19,232,593 20,840,642 17,857,925
? Savings deposits
8,371,043 8,169,704 7,191,501
? Time deposits
10,861,550 12,670,938 10,666,424
Reserve requirement – SFH TR + interest rate 604,050 597,829 572,041
Funds from rural loan not remunerated - - 578
Total (2) 54,105,876 59,516,989 50,819,665

(1) Pursuant to Bacen Circular Letter n
o
3460/09, the banks must collect funds from rural loan (on demand deposits) not lent as of August
2010, for return in August 2013; and
(2) For further information regarding new rules on reserve requirement, see Note 35c.

b) Revenue from reserve requirement
R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Reserve requirement – Bacen 1,131,731 1,073,825 2,205,556 1,349,292
Reserve requirement – SFH 7,942 8,250 16,192 13,258
Total 1,139,673 1,082,075 2,221,748 1,362,550



Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements


Bradesco 147

10) LOANS
Information relating to loans, including advances on foreign exchange contracts, leasing and other receivables with credit characteristics is shown below:
a) By type and maturity

R$ thousand
Performing loans
1 to 30
days
31 to 60
days
61 to 90
days
91 to 180
days
181 to 360
days
More than
360 days
2014 2013
Total on
June 30 (A)
%
(6)
Total on
March 31 (A)
%
(6)
Total on
June 30 (A)
%
(6)
Discounted trade receivables and loans (1) 19,275,189 14,083,733 10,125,884 19,596,165 20,275,924 56,051,180 139,408,075 36.8 140,777,982 37.5 134,572,342 38.5
Financing 3,581,686 3,528,416 2,930,207 8,648,311 14,843,022 79,323,919 112,855,561 29.7 112,583,233 29.9 102,684,948 29.4
Agricultural and agribusiness loans 2,683,001 934,033 879,523 4,651,906 4,169,776 9,759,078 23,077,317 6.1 21,229,159 5.6 17,321,736 4.9
Subtotal 25,539,876 18,546,182 13,935,614 32,896,382 39,288,722 145,134,177 275,340,953 72.6 274,590,374 73.0 254,579,026 72.8
Leasing 246,163 215,187 209,043 595,811 974,509 2,325,279 4,565,992 1.2 4,766,236 1.3 5,937,605 1.7
Advances on foreign exchange contracts (2) 768,343 1,134,862 688,367 2,403,606 1,400,855 9,783 6,405,816 1.7 6,447,175 1.7 6,639,087 1.9
Subtotal 26,554,382 19,896,231 14,833,024 35,895,799 41,664,086 147,469,239 286,312,761 75.5 285,803,785 76.0 267,155,718 76.4
Other receivables (3) 6,479,378 4,324,537 1,689,520 3,111,171 2,649,673 1,630,501 19,884,780 5.2 19,811,018 5.3 16,844,419 4.8
Total loans 33,033,760 24,220,768 16,522,544 39,006,970 44,313,759 149,099,740 306,197,541 80.7 305,614,803 81.3 284,000,137 81.2
Sureties and guarantees (4) 2,250,522 826,089 1,021,981 4,156,534 6,451,192 55,169,159 69,875,477 18.4 67,517,631 17.9 63,382,724 18.1
Loan assignment (5) - - - - - - - - 18,536 - 98,458 -
Loan assignment - real estate receivables
certificate 58,186 58,184 58,181 167,446 249,897 840,171 1,432,065 0.4 1,506,112 0.4 351,096 0.1
Co-obligation in rural loan assignment (4) - - - - - 111,358 111,358 - 111,035 - 119,528 -
Loans available for import (4) 69,893 34,910 109,095 112,497 11,193 42,674 380,262 0.1 364,638 0.1 912,461 0.3
Confirmed exports loans (4) 9,120 9,341 1,602 731 1,341 - 22,135 - 80,227 - 53,786 -
Acquisition of credit card receivables 369,231 164,669 117,298 305,208 345,592 83,560 1,385,558 0.4 1,099,867 0.3 1,083,850 0.3
Overall total on June 30, 2014 35,790,712 25,313,961 17,830,701 43,749,386 51,372,974 205,346,662 379,404,396 100.0
Overall total on March 31, 2014 36,744,557 25,537,505 17,566,272 41,985,432 54,617,824 199,861,259 376,312,849 100.0
Overall total on June 30, 2013 35,543,634 24,235,524 17,749,713 38,991,338 48,864,754 184,617,077 350,002,040 100.0

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

148 Report on Economic and Financial Analysis – June 2014

R$ thousand
Non-performing loans
Past-due installments
1 to 30
days
31 to 60
days
61 to 90
days
91 to 180
days
181 to 540
days
2014 2013
Total on
June 30 (B)
%
(6)
Total on
March 31 (B)
%
(6)
Total on
June 30 (B)
%
(6)
Discounted trade receivables and loans (1) 1,288,364 1,155,309 997,604 2,129,308 2,390,175 7,960,760 88.1 7,589,263 87.2 7,075,168 84.1
Financing 208,707 169,413 98,951 196,482 124,658 798,211 8.8 840,441 9.6 945,812 11.2
Agricultural and agribusiness loans 10,466 12,899 17,757 17,935 27,004 86,061 1.0 95,434 1.1 115,927 1.4
Subtotal 1,507,537 1,337,621 1,114,312 2,343,725 2,541,837 8,845,032 97.9 8,525,138 97.9 8,136,907 96.7
Leasing 22,027 17,805 12,265 22,326 18,016 92,439 1.0 107,416 1.2 169,498 2.0
Advances on foreign exchange contracts (2) 463 8,103 - - - 8,566 0.1 11,457 0.1 7,280 0.1
Subtotal 1,530,027 1,363,529 1,126,577 2,366,051 2,559,853 8,946,037 99.0 8,644,011 99.2 8,313,685 98.8
Other receivables (3) 7,340 2,100 2,208 31,612 42,567 85,827 1.0 66,507 0.8 97,213 1.2
Overall total on June 30, 2014 1,537,367 1,365,629 1,128,785 2,397,663 2,602,420 9,031,864 100.0
Overall total on March 31, 2014 1,458,130 1,537,921 1,124,936 1,961,826 2,627,705 8,710,518 100.0
Overall total on June 30, 2013 1,375,295 1,204,275 1,025,559 2,117,588 2,688,181 8,410,898 100.0


Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements


Bradesco 149



R$ thousand
Non-performing loans
Outstanding installments
1 to 30
days
31 to 60
days
61 to 90
days
91 to 180
days
181 to 360
days
More than
360 days
2014 2013
Total on
June 30 (C)
%
(6)
Total on
March 31 (C)
%
(6)
Total on
June 30 (C)
%
(6)
Discounted trade receivables and loans (1) 672,355 559,880 494,004 1,176,338 1,727,382 4,011,406 8,641,365 64.3 8,903,597 63.9 7,758,252 58.9
Financing 204,521 184,629 182,484 515,816 870,074 2,344,076 4,301,600 32.0 4,476,095 32.1 4,710,034 35.8
Agricultural and agribusiness loans 563 1,097 1,511 6,560 22,020 146,030 177,781 1.3 148,977 1.1 141,873 1.1
Subtotal 877,439 745,606 677,999 1,698,714 2,619,476 6,501,512 13,120,746 97.6 13,528,669 97.1 12,610,159 95.8
Leasing 20,190 18,534 17,656 48,347 73,546 132,241 310,514 2.3 397,155 2.9 549,234 4.2
Subtotal 897,629 764,140 695,655 1,747,061 2,693,022 6,633,753 13,431,260 99.9 13,925,824 100.0 13,159,393 100.0
Other receivables (3) 466 414 359 1,012 1,427 3,602 7,280 0.1 6,101 - 3,123 -
Overall total on June 30, 2014 898,095 764,554 696,014 1,748,073 2,694,449 6,637,355 13,438,540 100.0
Overall total on March 31, 2014 936,488 783,522 691,084 1,783,634 2,810,508 6,926,689 13,931,925 100.0
Overall total on June 30, 2013 864,874 743,551 679,576 1,742,370 2,664,416 6,467,729 13,162,516 100.0

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Notes to the Consolidated Financial Statements

150 Report on Economic and Financial Analysis – June 2014

R$ thousand
Overall total
2014 2013

Total on June 30
(A+B+C)
%
(6)
Total on March 31
(A+B+C)
%
(6)
Total on June 30
(A+B+C)
%
(6)
Discounted trade receivables and loans (1) 156,010,200 38.8 157,270,842 39.4 149,405,762 40.2
Financing 117,955,372 29.4 117,899,769 29.6 108,340,794 29.2
Agricultural and agribusiness loans 23,341,159 5.8 21,473,570 5.4 17,579,536 4.7
Subtotal 297,306,731 74.0 296,644,181 74.4 275,326,092 74.1
Leasing 4,968,945 1.2 5,270,807 1.3 6,656,337 1.8
Advances on foreign exchange contracts (2) (Note 11a) 6,414,382 1.6 6,458,632 1.6 6,646,367 1.8
Subtotal 308,690,058 76.8 308,373,620 77.3 288,628,796 77.7
Other receivables (3) 19,977,887 5.0 19,883,626 5.0 16,944,755 4.6
Total loans 328,667,945 81.8 328,257,246 82.3 305,573,551 82.3
Sureties and guarantees (4) 69,875,477 17.4 67,517,631 16.9 63,382,724 17.1
Loan assignment (5) - - 18,536 - 98,458 -
Loan assignment - real estate receivables certificate 1,432,065 0.4 1,506,112 0.4 351,096 0.1
Co-obligation in rural loan assignment (4) 111,358 - 111,035 - 119,528 -
Loans available for import (4) 380,262 0.1 364,638 0.1 912,461 0.2
Confirmed exports loans (4) 22,135 - 80,227 - 53,786 -
Acquisition of credit card receivables 1,385,558 0.3 1,099,867 0.3 1,083,850 0.3
Overall total on June 30, 2014 401,874,800 100.0
Overall total on March 31, 2014 398,955,292 100.0
Overall total on June 30, 2013 371,575,454 100.0

(1) Including credit card loans and advances on credit card receivables for the amount of R$ 18,384,878 thousand (R$ 18,504,679 thousand on March 31, 2014 and R$ 18,833,944 thousand on June 30,
2013);
(2) Advances on foreign exchange contracts are classified as a deduction from “Other Liabilities”;
(3) Item “Other Receivables” comprises receivables on sureties and guarantees honored, receivables on sale of assets, securities and credits receivable, income receivable from foreign exchange contracts
and export contracts and credit card receivables (cash and installment purchases at merchants) for the amount of R$ 16,671,843 thousand (R$ 16,737,909 thousand on March 31, 2014 and R$ 14,829,123
thousand on June 30, 2013);
(4) Recorded in off-balance sheet accounts;
(5) Amount of loan assignment up to March 31, 2014, and June 30, 2013, respectively, net of installments repaid; and
(6) Percentage of each type on total loan portfolio, including sureties and guarantee, loan assignment and acquisition of receivables.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements


Bradesco 151

b) By type and levels of risk

R$ thousand
Levels of risk
AA A B C D E F G H
2014 2013
Total on
June 30
%
(1)
Total on
March 31
%
(1)
Total on
June 30
%
(1)
Discounted trade
receivables and
loans 24,975,319 74,449,822 10,995,826 25,206,692 4,802,739 3,309,819 2,215,954 1,564,574 8,489,455 156,010,200 47.5 157,270,842 47.9 149,405,762 48.8
Financing 26,651,927 43,202,995 37,787,581 7,047,385 798,706 470,340 398,186 249,093 1,349,159 117,955,372 35.9 117,899,769 35.9 108,340,794 35.5
Agricultural and
agribusiness loans 3,490,673 3,177,840 9,052,684 6,972,587 239,646 199,644 119,784 10,387 77,914 23,341,159 7.1 21,473,570 6.5 17,579,536 5.8
Subtotal 55,117,919 120,830,657 57,836,091 39,226,664 5,841,091 3,979,803 2,733,924 1,824,054 9,916,528 297,306,731 90.5 296,644,181 90.3 275,326,092 90.1
Leasing 109,251 603,801 1,445,681 2,253,129 203,410 56,404 60,312 26,160 210,797 4,968,945 1.5 5,270,807 1.6 6,656,337 2.2
Advances on
foreign exchange
contracts (2) 2,983,469 1,933,567 662,580 739,186 57,275 27,618 4,263 - 6,424 6,414,382 1.9 6,458,632 2.0 6,646,367 2.2
Subtotal 58,210,639 123,368,025 59,944,352 42,218,979 6,101,776 4,063,825 2,798,499 1,850,214 10,133,749 308,690,058 93.9 308,373,620 93.9 288,628,796 94.5
Other receivables 971,165 14,858,468 1,182,916 2,300,973 122,699 44,610 38,783 55,544 402,729 19,977,887 6.1 19,883,626 6.1 16,944,755 5.5
Overall total on
June 30, 2014 59,181,804 138,226,493 61,127,268 44,519,952 6,224,475 4,108,435 2,837,282 1,905,758 10,536,478 328,667,945 100.0
% 18.0 42.1 18.6 13.5 1.9 1.2 0.9 0.6 3.2 100.0
Overall total on
March 31, 2014 59,809,242 135,682,050 61,152,811 45,885,781 7,013,465 4,357,870 2,220,070 1,739,372 10,396,585 328,257,246 100.0
% 18.2 41.3 18.7 14.0 2.1 1.3 0.7 0.5 3.2 100.0
Overall total on
June 30, 2013 50,062,923 128,691,764 52,842,730 47,328,927 9,070,477 2,635,834 2,451,871 1,859,068 10,629,957 305,573,551 100.0
% 16.4 42.1 17.3 15.5 3.0 0.9 0.8 0.6 3.4 100.0

(1) Percentage of each type on total loan portfolio, excluding sureties and guarantees, loan assignments, acquisition of receivables and co-obligation in rural loan assignments; and
(2) See Note 11a.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

152 Report on Economic and Financial Analysis – June 2014
c) Maturity ranges and levels of risk

R$ thousand
Levels of risk
Non-performing loans

AA A B C D E F G H
2014 2013

Total on
June 30
%
(1)
Total on
March 31
%
(1)
Total on
June 30
%
(1)
Outstanding
installments - - 1,541,725 2,945,925 1,999,126 1,255,105 1,183,536 763,404 3,749,719 13,438,540 100.0 13,931,925 100.0 13,162,516 100.0
1 to 30 - - 146,967 234,804 130,752 62,648 61,184 43,777 217,963 898,095 6.7 936,488 6.7 864,874 6.6
31 to 60 - - 129,551 193,757 100,293 55,740 52,396 38,339 194,478 764,554 5.7 783,522 5.6 743,551 5.6
61 to 90 - - 106,437 162,812 92,830 55,489 58,091 36,959 183,396 696,014 5.2 691,084 5.0 679,576 5.2
91 to 180 - - 212,037 396,012 255,774 143,762 136,897 101,349 502,242 1,748,073 13.0 1,783,634 12.8 1,742,370 13.2
181 to 360 - - 299,935 581,841 408,564 222,749 228,359 157,161 795,840 2,694,449 20.1 2,810,508 20.2 2,664,416 20.2
More than 360 - - 646,798 1,376,699 1,010,913 714,717 646,609 385,819 1,855,800 6,637,355 49.3 6,926,689 49.7 6,467,729 49.2
Past-due
installments
(2) - - 477,549 954,272 992,057 735,032 936,589 723,382 4,212,983 9,031,864 100.0 8,710,518 100.0 8,410,898 100.0
1 to 14 - - 15,619 96,001 128,896 31,906 52,404 17,436 156,580 498,842 5.5 437,410 5.0 439,289 5.2
15 to 30 - - 450,299 255,544 98,112 46,773 30,070 27,581 130,146 1,038,525 11.5 1,020,720 11.7 936,006 11.1
31 to 60 - - 11,631 584,787 229,528 100,528 73,306 46,953 318,896 1,365,629 15.1 1,537,921 17.7 1,204,275 14.3
61 to 90 - - - 13,683 512,264 141,748 102,936 61,630 296,524 1,128,785 12.5 1,124,936 12.9 1,025,559 12.2
91 to 180 - - - 4,257 23,257 405,418 650,795 552,256 761,680 2,397,663 26.5 1,961,826 22.5 2,117,588 25.2
181 to 360 - - - - - 8,659 27,078 17,526 2,486,659 2,539,922 28.2 2,566,104 29.5 2,610,232 31.1
More than 360 - - - - - - - - 62,498 62,498 0.7 61,601 0.7 77,949 0.9
Subtotal - - 2,019,274 3,900,197 2,991,183 1,990,137 2,120,125 1,486,786 7,962,702 22,470,404 22,642,443 21,573,414
Specific
provision - - 20,192 117,006 299,119 597,041 1,060,063 1,040,750 7,962,702 11,096,873 10,778,385 10,879,179

(1) Percentage of maturities by type of installment; and
(2) For transactions with terms of more than 36 months, past-due periods are doubled, as allowed under CMN Resolution n
o
2682/99.

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements


Bradesco 153


R$ thousand
Levels of risk
Performing loans
AA A B C D E F G H
2014 2013
Total on
June 30
%
(1)
Total on
March 31
%
(1)
Total on
June 30
%
(1)
Outstanding
installments 59,181,804 138,226,493 59,107,994 40,619,755 3,233,292 2,118,298 717,157 418,972 2,573,776 306,197,541 100.0 305,614,803 100.0 284,000,137 100.0
1 to 30 4,384,603 17,513,802 3,483,784 6,503,552 380,611 159,392 110,877 78,725 418,414 33,033,760 10.8 33,485,188 11.0 33,331,836 11.7
31 to 60 4,097,901 12,569,707 2,730,359 4,107,075 231,918 108,233 79,668 33,142 262,765 24,220,768 7.9 24,265,784 7.9 22,792,800 8.0
61 to 90 2,556,199 8,432,661 1,997,684 3,065,451 207,140 55,055 44,525 24,652 139,177 16,522,544 5.4 16,036,425 5.2 16,187,881 5.7
91 to 180 6,761,665 17,566,029 5,739,246 7,071,682 469,355 932,735 83,063 47,700 335,495 39,006,970 12.7 38,229,433 12.5 35,486,322 12.5
181 to 360 7,282,739 22,122,607 7,373,103 6,430,665 428,207 152,438 95,789 55,858 372,353 44,313,759 14.5 46,728,478 15.3 41,826,817 14.7
More than 360 34,098,697 60,021,687 37,783,818 13,441,330 1,516,061 710,445 303,235 178,895 1,045,572 149,099,740 48.7 146,869,495 48.1 134,374,481 47.4
Generic provision - 691,132 591,080 1,218,593 323,329 635,489 358,579 293,280 2,573,776 6,685,258 6,621,018 6,567,587
Overall total on June
30, 2014 (2) 59,181,804 138,226,493 61,127,268 44,519,952 6,224,475 4,108,435 2,837,282 1,905,758 10,536,478 328,667,945
Existing provision - 769,542 696,052 2,364,138 1,734,159 1,833,718 1,964,371 1,892,926 10,536,478 21,791,384
Minimum required
provision - 691,132 611,272 1,335,599 622,448 1,232,530 1,418,642 1,334,030 10,536,478 17,782,131
Excess provision (3) - 78,410 84,780 1,028,539 1,111,711 601,188 545,729 558,896 - 4,009,253
Overall total on
March 31, 2014 (2) 59,809,242 135,682,050 61,152,811 45,885,781 7,013,465 4,357,870 2,220,070 1,739,372 10,396,585 328,257,246
Existing provision - 760,369 691,184 2,370,453 1,975,728 1,942,485 1,549,980 1,720,126 10,396,585 21,406,910
Minimum required
provision - 678,414 611,528 1,376,573 701,346 1,307,361 1,110,035 1,217,561 10,396,585 17,399,403
Excess provision (3) - 81,955 79,656 993,880 1,274,382 635,124 439,945 502,565 - 4,007,507
Overall total on June
30, 2013 (2) 50,062,923 128,691,764 52,842,730 47,328,927 9,070,477 2,635,834 2,451,871 1,859,068 10,629,957 305,573,551
Existing provision - 644,673 533,493 2,540,954 2,355,932 1,272,700 1,645,472 1,832,020 10,629,957 21,455,201
Minimum required
provision - 643,433 528,427 1,419,868 907,047 790,750 1,225,935 1,301,349 10,629,957 17,446,766
Excess provision - 1,240 5,066 1,121,086 1,448,885 481,950 419,537 530,671 - 4,008,435

(1) Percentage of maturities by type of installment;
(2) The overall total includes performing loans for the amount of R$ 306,197,541 thousand (R$ 305,614,803 thousand on March 31, 2014 and R$ 284,000,137 thousand on June 30, 2013) and non-
performing loans of R$ 22,470,404 thousand (R$ 22,642,443 thousand on March 31, 2014 and R$ 21,573,414 thousand on June 30, 2013); and
(3) On June 30, 2014, it includes provision for guarantees provided, comprising sureties, letters of credit and standby letter of credit, which was detached from the excess provision, totaling R$ 333,734
thousand (R$ 355,479 thousand on March 31, 2014) (Note 20b).
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Notes to the Consolidated Financial Statements

154 Report on Economic and Financial Analysis – June 2014
d) Concentration of loans

R$ thousand
2014 2013
June 30 % (1) March 31 % (1) June 30 % (1)
Largest borrower 6,126,977 1.9 6,099,815 1.9 2,653,726 0.9
10 largest borrowers 21,889,272 6.7 21,085,268 6.4 16,673,201 5.5
20 largest borrowers 31,242,836 9.5 30,068,823 9.2 25,606,826 8.4
50 largest borrowers 45,222,858 13.8 44,709,536 13.6 38,951,215 12.7
100 largest borrowers 57,191,992 17.4 56,765,490 17.3 50,703,348 16.6

(1) Percentage on total portfolio (as defined by Bacen).

e) By economic sector


R$ thousand
2014 2013
June 30 (1) % March 31 (1) % June 30 (1) %
Public sector 6,156,893 1.9 6,134,786 1.9 182,137 0.1
Federal government 6,126,977 1.9 6,099,815 1.9 81,755 -
Petrochemical 6,126,977 1.9 6,099,815 1.9 81,755 -
State government 29,916 - 34,971 - 100,382 0.1
Production and distribution of electricity 29,916 - 34,971 - 100,382 0.1
Private sector 322,511,052 98.1 322,122,460 98.1 305,391,414 99.9
Manufacturing 54,767,911 16.6 57,248,281 17.4 57,969,327 19.0
Food products and beverages 13,868,061 4.2 13,702,865 4.2 14,177,461 4.7
Steel, metallurgy and mechanics 10,054,449 3.1 10,996,178 3.3 10,042,356 3.3
Light and heavy vehicles 4,407,580 1.3 4,517,481 1.4 4,998,757 1.6
Pulp and paper 4,024,469 1.2 4,114,570 1.3 4,234,583 1.4
Chemical 3,661,973 1.1 4,088,839 1.2 4,535,411 1.5
Textiles and apparel 3,130,392 0.9 3,326,775 1.0 3,597,742 1.2
Rubber and plastic articles 2,700,983 0.8 2,775,948 0.8 2,770,970 0.9
Furniture and wood products 2,213,129 0.7 2,106,729 0.6 2,081,006 0.7
Non-metallic materials 2,006,362 0.6 2,493,783 0.8 1,722,381 0.6
Automotive parts and accessories 1,967,945 0.6 2,095,009 0.6 1,890,700 0.6
Oil refining and production of alcohol 1,657,942 0.5 1,589,035 0.5 1,978,146 0.6
Electric and electronic products 1,200,951 0.4 1,485,312 0.5 1,579,995 0.5
Extraction of metallic and non-metallic ores 1,170,875 0.4 1,248,043 0.4 1,650,131 0.5
Leather articles 755,180 0.2 797,573 0.2 755,078 0.2
Publishing, printing and reproduction 541,519 0.2 575,642 0.2 573,661 0.2
Other industries 1,406,101 0.4 1,334,499 0.4 1,380,949 0.5
Commerce 41,698,763 12.8 42,766,588 13.1 41,970,856 13.7
Merchandise in specialty stores 8,202,678 2.5 8,503,002 2.6 9,141,069 3.1
Non-specialized retailer 4,997,814 1.5 5,310,128 1.6 4,463,059 1.5
Food products, beverages and tobacco 4,627,035 1.4 4,598,418 1.4 4,376,328 1.4
Waste and scrap 3,592,098 1.1 3,741,842 1.1 3,404,491 1.1
Automobile 3,568,137 1.1 3,531,935 1.1 3,495,149 1.1
Motor vehicle repairs, parts and accessories 3,083,494 0.9 3,188,407 1.0 3,279,782 1.1
Clothing and footwear 2,942,289 0.9 2,948,678 0.9 3,176,055 1.0


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Notes to the Consolidated Financial Statements


Bradesco 155


R$ thousand
2014 2013
June 30 (1) % March 31 (1) % June 30 (1) %
Agricultural products 2,186,741 0.7 2,210,533 0.7 2,072,816 0.7
Grooming and household articles 2,179,997 0.7 2,265,792 0.7 2,271,043 0.7
Fuel 1,921,946 0.6 1,936,686 0.6 1,944,018 0.6
Wholesale of goods in general 1,151,577 0.4 1,183,990 0.4 1,021,802 0.3
Trading intermediary 904,057 0.3 917,216 0.3 926,292 0.3
Other commerce 2,340,900 0.7 2,429,961 0.7 2,398,952 0.8
Financial intermediaries 3,742,382 1.1 3,443,588 1.0 2,182,410 0.7
Services 84,762,710 25.7 83,861,711 25.5 77,683,448 25.4
Civil construction 23,492,691 7.1 23,525,719 7.2 21,819,382 7.1
Transportation and storage 17,486,148 5.3 18,312,306 5.6 17,173,599 5.6
Real estate activities, rentals and corporate
services 12,063,574 3.7 11,790,085 3.6 10,895,674 3.6
Holding companies, legal, accounting and
business advisory services 5,701,013 1.7 5,713,522 1.7 4,459,578 1.5
Clubs, leisure, cultural and sport activities 4,037,140 1.2 2,077,567 0.6 2,119,974 0.7
Production and distribution of electric power,
gas and water 3,838,605 1.2 4,373,182 1.3 4,641,742 1.5
Hotels and catering 2,799,137 0.9 2,798,469 0.9 2,714,886 0.9
Social services, education, health, defense
and social security 2,790,481 0.8 2,802,166 0.9 2,500,811 0.8
Telecommunications 427,936 0.1 431,011 0.1 515,460 0.2
Other services 12,125,985 3.7 12,037,684 3.6 10,842,342 3.5
Agriculture, cattle raising, fishing, forestry
and timber industry 3,580,238 1.1 3,249,237 1.0 3,014,269 1.0
Individuals 133,959,048 40.8 131,553,055 40.1 122,571,104 40.1
Total 328,667,945 100.0 328,257,246 100.0 305,573,551 100.0

(1) On June 2014, we refined the classification process per economic activity sector of credit operations and, for the purposes of
comparability, we reclassified previous periods.

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Notes to the Consolidated Financial Statements

156 Report on Economic and Financial Analysis – June 2014
f) Breakdown of loans and allowance for loan losses
Level of risk
R$ thousand
Portfolio balance
Non-performing loans
Performing
loans
Total
%
(1)
2014 2013
Past due Outstanding
Total - non-
performing
loans
% Accumulated on
June 30 (2)
% Accumulated on
March 31 (2)
% Accumulated on
June 30 (2)
AA - - - 59,181,804 59,181,804 18.0 18.0 18.2 16.4
A - - - 138,226,493 138,226,493 42.1 60.1 59.5 58.5
B 477,549 1,541,725 2,019,274 59,107,994 61,127,268 18.6 78.7 78.2 75.8
C 954,272 2,945,925 3,900,197 40,619,755 44,519,952 13.5 92.2 92.2 91.3
Subtotal 1,431,821 4,487,650 5,919,471 297,136,046 303,055,517 92.2
D 992,057 1,999,126 2,991,183 3,233,292 6,224,475 1.9 94.1 94.3 94.3
E 735,032 1,255,105 1,990,137 2,118,298 4,108,435 1.2 95.3 95.6 95.2
F 936,589 1,183,536 2,120,125 717,157 2,837,282 0.9 96.2 96.3 96.0
G 723,382 763,404 1,486,786 418,972 1,905,758 0.6 96.8 96.8 96.6
H 4,212,983 3,749,719 7,962,702 2,573,776 10,536,478 3.2 100.0 100.0 100.0
Subtotal 7,600,043 8,950,890 16,550,933 9,061,495 25,612,428 7.8
Overall total on June 30, 2014 9,031,864 13,438,540 22,470,404 306,197,541 328,667,945 100.00
% 2.7 4.1 6.8 93.2 100.0
Overall total on March 31, 2014 8,710,518 13,931,925 22,642,443 305,614,803 328,257,246
% 2.6 4.3 6.9 93.1 100.0
Overall total on June 30, 2013 8,410,898 13,162,516 21,573,414 284,000,137 305,573,551
% 2.8 4.3 7.1 92.9 100.0

(1) Percentage of level of risk on total portfolio; and
(2) Cumulative percentage of level of risk on total portfolio.

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Notes to the Consolidated Financial Statements


Bradesco 157

Level of risk
R$ thousand
Provision
% Minimum
provisioning
required
Minimum required
Excess (2) Existing
2014 2013
Specific
Generic Total
% Accumulated
on June 30 (1)
% Accumulated
on March 31 (1)
% Accumulated
on June 30 (1)
Past due Outstanding Total specific
AA - - - - - - - - - - -
A 0.5 - - - 691,132 691,132 78,410 769,542 0.6 0.6 0.5
B 1.0 4,775 15,417 20,192 591,080 611,272 84,780 696,052 1.1 1.1 1.0
C 3.0 28,628 88,378 117,006 1,218,593 1,335,599 1,028,539 2,364,138 5.3 5.2 5.4
Subtotal 33,403 103,795 137,198 2,500,805 2,638,003 1,191,729 3,829,732 1.3 1.3 1.3
D 10.0 99,206 199,913 299,119 323,329 622,448 1,111,711 1,734,159 27.9 28.2 26.0
E 30.0 220,510 376,531 597,041 635,489 1,232,530 601,188 1,833,718 44.6 44.6 48.3
F 50.0 468,295 591,768 1,060,063 358,579 1,418,642 545,729 1,964,371 69.2 69.8 67.1
G 70.0 506,367 534,383 1,040,750 293,280 1,334,030 558,896 1,892,926 99.3 98.9 98.5
H 100.0 4,212,983 3,749,719 7,962,702 2,573,776 10,536,478 - 10,536,478 100.0 100.0 100.0
Subtotal 5,507,361 5,452,314 10,959,675 4,184,453 15,144,128 2,817,524 17,961,652 70.1 68.4 66.6
Grand Total on
June 30, 2014 5,540,764 5,556,109 11,096,873 6,685,258 17,782,131 4,009,253 21,791,384 6.6
% 25.4 25.5 50.9 30.7 81.6 18.4 100.0
Grand Total on
March 31, 2014 5,289,592 5,488,793 10,778,385 6,621,018 17,399,403 4,007,507 21,406,910 6.5
% 24.7 25.7 50.4 30.9 81.3 18.7 100.0
Grand Total on
June 30, 2013 5,395,075 5,484,104 10,879,179 6,567,587 17,446,766 4,008,435 21,455,201 7.0
% 25.1 25.6 50.7 30.6 81.3 18.7 100.0

(1) Percentage of existing provision on total portfolio, by level of risk; and
(2) On June 30, 2014, it includes provision for collateral, comprising sureties, guarantees, letters of credit and standby letter of credit, which was recorded in a separate account from the excess provision,
totaling R$ 333,734 thousand (R$ 355,479 thousand on March 31, 2014) (Note 20b).


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Notes to the Consolidated Financial Statements

158 Report on Economic and Financial Analysis – June 2014
g) Changes in allowance for loan losses

R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Opening balance 21,406,910 21,687,029 21,687,029 21,298,588
- Specific provision (1) 10,778,385 10,851,170 10,851,170 11,181,925
- Generic provision (2) 6,621,018 6,800,157 6,800,157 6,106,477
- Excess provision (3) 4,007,507 4,035,702 4,035,702 4,010,186
Additions (Note 10h-1) 3,622,814 3,269,154 6,891,968 7,082,988
Write-offs (3,238,340) (3,549,273) (6,787,613) (6,926,375)
Closing balance 21,791,384 21,406,910 21,791,384 21,455,201
- Specific provision (1) 11,096,873 10,778,385 11,096,873 10,879,179
- Generic provision (2) 6,685,258 6,621,018 6,685,258 6,567,587
- Excess provision (3) (4) 4,009,253 4,007,507 4,009,253 4,008,435

(1) For transactions with past-due installments for more than 14 days;
(2) Recorded based on the customer/transaction classification and therefore not included in the preceding item;
(3) The additional provision is recorded based on Management's experience and the expectation of the loan portfolio, to determine the total
provision deemed sufficient to cover specific and general credit risk, together with the provision calculated based on levels of risk and
the corresponding minimum percentage in the provision established by CMN Resolution n
o
2682/99. The excess provision per customer
was classified according to the corresponding level of risk (Note 10f); and
(4) On June 30, 2014, it includes provision for collateral, comprising sureties, guarantees, letters of credit and standby letter of credit, which
was recorded in a separate account from the excess provision, totaling R$ 333,734 thousand (R$ 355,479 thousand on March 31, 2014)
(Note 20b).

h) Allowance for Loan Losses (ALL) expense net of amounts recovered

Expenses with the allowance for loan losses, net of credit write offs recovered, are as follows.


R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Amount recorded (1) 3,622,814 3,269,154 6,891,968 7,082,988
Amount recovered (2) (990,862) (866,378) (1,857,240) (1,748,504)
Allowance for Loan Losses (ALL) expense net of amounts
recovered 2,631,952 2,402,776 5,034,728 5,334,484

(1) The 1
st
and 2
nd
quarters of 2014 include reversal of provision for collateral, comprising sureties, guarantees, letters of credit and standby
letter of credit, which comprises the “excess” ALL concept, totaling R$ (3,890) thousand and R$ (21,745) thousand, respectively, and
on the 1
st
quarter of 2014, provision totaling R$ 17,855 thousand; and
(2) Classified in income from loans (Note 10j).

i) Changes in the renegotiated portfolio

R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Opening balance 10,106,414 10,191,901 10,191,901 9,643,915
Amount renegotiated 2,704,945 2,249,910 4,954,855 4,858,215
Amount received (1,558,562) (1,272,713) (2,831,275) (2,647,271)
Write-offs (1,017,473) (1,062,684) (2,080,157) (1,874,736)
Closing balance 10,235,324 10,106,414 10,235,324 9,980,123
Allowance for loan losses 6,535,598 6,513,453 6,535,598 6,418,706
Percentage on renegotiated portfolio 63.9% 64.4% 63.9% 64.3%

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Notes to the Consolidated Financial Statements


Bradesco 159

j) Income from loans and leasing

R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Discounted trade receivables and loans 9,853,700 9,356,022 19,209,722 16,814,211
Financing 3,213,511 3,142,621 6,356,132 6,325,831
Agricultural and agribusiness loans 258,621 301,951 560,572 480,493
Subtotal 13,325,832 12,800,594 26,126,426 23,620,535
Recovery of credits charged-off as losses 990,862 866,378 1,857,240 1,748,504
Subtotal 14,316,694 13,666,972 27,983,666 25,369,039
Leasing, net of expenses 165,636 176,592 342,228 407,922
Total 14,482,330 13,843,564 28,325,894 25,776,961

11) OTHER RECEIVABLES

a) Foreign exchange portfolio

Balances


R$ thousand
2014 2013
June 30 March 31 June 30
Assets - other receivables
Exchange purchases pending settlement 8,524,138 10,607,491 10,278,732
Foreign exchange and term documents in foreign currencies 5,750 - -
Exchange sale receivables 3,221,577 7,846,747 2,606,505
(-) Advances in domestic currency received (333,852) (384,564) (378,286)
Income receivable on advances granted 58,497 63,970 96,524
Total 11,476,110 18,133,644 12,603,475
Liabilities - other liabilities

Exchange sales pending settlement 3,200,750 7,699,812 2,634,426
Exchange purchase payables 8,759,386 10,749,928 9,608,158
(-) Advances on foreign exchange contracts (6,414,382) (6,458,632) (6,646,367)
Other 5,901 4,227 5,181
Total 5,551,655 11,995,335 5,601,398
Net foreign exchange portfolio 5,924,455 6,138,309 7,002,077
Off-balance-sheet accounts:
- Loans available for import 380,262 364,638 912,461
- Confirmed exports loans 22,135 80,227 53,786


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Notes to the Consolidated Financial Statements

160 Report on Economic and Financial Analysis – June 2014
Foreign exchange results

Adjusted foreign exchange results for presentation purposes

R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Foreign exchange results 73,647 (7,526) 66,121 1,172,934
Adjustments:
- Income on foreign currency financing (1) 16,162 16,725 32,887 93,120
- Income on export financing (1) 216,616 224,711 441,327 350,286
- Income on foreign investments (2) 32 76 108 20,645
- Expenses of liabilities with foreign bankers (3) (Note 17c) 9,043 18,573 27,616 (740,531)
- Funding expenses (4) (131,949) (166,987) (298,936) (169,655)
- Other 41,089 110,271 151,360 (345,481)
Total adjustments 150,993 203,369 354,362 (791,616)
Adjusted foreign exchange results 224,640 195,843 420,483 381,318

(1) Recognized in “Income from loans”;
(2) Recognized in “Income from security transactions”;
(3) Related to funds for financing of advances on foreign exchange contracts and import financing, recognized in “Borrowing and onlending
expenses”; and
(4) Refer to funding expenses of investments in foreign exchange.

b) Sundry


R$ thousand
2014 2013
June 30 March 31 June 30
Tax credits (Note 34c) 29,935,350 29,213,684 29,814,523
Credit card operations 18,057,401 17,837,776 15,912,973
Debtors for escrow deposits 11,072,129 11,080,960 11,436,069
Other debtors 5,312,303 5,169,051 4,111,909
Prepaid taxes 4,397,298 5,186,611 4,237,065
Trade and credit receivables (1) 4,335,445 4,083,798 3,404,431
Payments to be reimbursed 837,117 1,224,772 505,518
Receivables from sale of assets 81,556 80,123 61,745
Other 581,273 377,466 465,075
Total 74,609,872 74,254,241 69,949,308

(1) Include receivables from the acquisition of financial assets from loans without substantial transfer of risks and benefits.

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Notes to the Consolidated Financial Statements


Bradesco 161

12) OTHER ASSETS
a) Foreclosed assets/other

R$ thousand
Cost
Provision for
losses
Cost net of provision
2014 2013
June 30 March 31 June 30
Real estate 719,708 (116,777) 602,931 555,303 387,774
Vehicles and similar 628,724 (302,719) 326,005 315,225 276,947
Goods subject to special conditions 196,647 (196,647) - - -
Inventories/warehouse 69,411 - 69,411 78,186 95,980
Machinery and equipment 25,134 (12,760) 12,374 12,214 11,406
Other 21,336 (18,719) 2,617 1,338 1,750
Total on June 30, 2014 1,660,960 (647,622) 1,013,338
Total on March 31, 2014 1,565,634 (603,368)

962,266

Total on June 30, 2013 1,293,444 (519,587)


773,857

b) Prepaid expenses

R$ thousand
2014 2013
June 30 March 31 June 30
Deferred insurance acquisition costs (1) 1,810,912 1,727,490 1,380,471
Commission on the placement of loans and financing (2) 1,629,889 1,763,712 1,765,184
Advertising and marketing expenses (3) 65,637 80,353 55,475
Other (4) 385,363 406,318 513,090
Total 3,891,801 3,977,873 3,714,220

(1) Commissions paid to brokers and representatives on sale of insurance, pension plans and capitalization bond products;
(2) Commissions paid to storeowners, car dealers and correspondent banks - payroll-deductible loans;
(3) Prepaid expenses of future advertising and marketing campaigns on media; and
(4) Mainly related to card issue costs.

13) INVESTMENTS
a) Composition of investments in the consolidated financial statements

Affiliates
R$ thousand
2014 2013
June 30 March 31 June 30
- IRB-Brasil Resseguros S.A. 542,293 546,691 531,719
- Integritas Participações S.A. 496,370 503,719 508,889
- BES Investimento do Brasil S.A. 135,860 134,986 129,858
- Other 296,486 271,240 269,717
Total investment in affiliates - in Brazil 1,471,009 1,456,636 1,440,183
- Tax incentives 239,418 239,533 239,533
- Other investments 450,048 448,271 514,694
Provision for:
- Tax incentives (211,930) (212,045) (212,045)
- Other investments (61,798) (61,798) (61,948)
Overall total investments 1,886,747 1,870,597 1,920,417

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

162 Report on Economic and Financial Analysis – June 2014
b) The adjustments from the equity method accounting of investments were recorded in the income statement, under “Equity in the Earnings (Losses) of
Unconsolidated Companies”, and correspond to R$ 86,627 thousand in the 1
st
semester of 2014 (R$ 15,220 thousand in the 1
st
semester of 2013) and R$ 34,864
thousand in the 2
nd
quarter of 2014 (R$ 51,763 thousand in the 1
st
quarter of 2014).

Companies
R$ thousand
Capital Stock
Adjusted
shareholders’
equity
Number of shares/
quotas held
(in thousands)
Consolidated
ownership on
capital stock
Adjusted
result
Equity accounting adjustments (1)
2014 2013
Common Preferred 2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
IRB-Brasil Resseguros S.A. (2) 1,453,080 2,644,042 212 - 20.51% 346,026 27,232 43,738 70,970 1,655
BES Investimento do Brasil S.A. - Banco de
Investimento 420,000 679,300 12,734 12,734 20.00% 35,850 3,010 4,160 7,170 2,835
Integritas Participações S.A. (2) 545,638 754,136 22,581 - 25.17% 10,774 2,905 (193) 2,712 2,274
Other (2) 1,717 4,058 5,775 8,456
Equity in the earnings (losses) of
unconsolidated companies 34,864 51,763 86,627 15,220

(1) The adjustment considers income calculated periodically by the companies and includes equity variations by the investees not coming from profit or loss, as well as alignment of accounting practice
adjustments, where applicable; and
(2) Based on financial information from the previous month.

















Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 163
14) PREMISES AND EQUIPMENT

R$ thousand
Annual
depreciation rate
Cost Depreciation
Cost net of depreciation
2014 2013
June 30 March 31 June 30
Property and equipment:
- Buildings 4% 1,057,608 (459,073) 598,535 588,418 556,827
- Land - 405,713 - 405,713 405,434 405,672
Facilities, furniture and equipment in use 10% 4,552,002 (2,577,945) 1,974,057 2,027,776 2,057,121
Security and communication systems 10% 399,808 (177,232) 222,576 188,388 122,170
Data processing systems 20 to 50% 5,340,186 (3,986,201) 1,353,985 1,363,375 1,296,890
Transportation systems 20% 60,295 (36,254) 24,041 23,404 25,328
Total on June 30, 2014 11,815,612 (7,236,705) 4,578,907
Total on March 31, 2014 11,828,383 (7,231,588) 4,596,795
Total on June 30, 2013 11,223,666 (6,759,658) 4,464,008

The Bradesco Organization’s premises and equipment shows an unrecorded surplus of R$ 5,294,745 thousand (R$ 5,302,970 thousand on March 31, 2014 and
R$ 5,266,042 thousand on June 30, 2013). This is due to an increase in their market price, based on valuations by independent experts in 2014, 2013 and 2012.

The total consolidated fixed assets to net worth ratio is 13.2% (15.0% on March 31, 2014 and 17.3% on June 30, 2013), and the consolidated finance fixed assets
to net worth ratio is 46.7% (47.1% on March 31, 2014 and 44.3% on June 30, 2013), whereas the maximum limit is 50%.

The difference between the total consolidated and consolidated finance fixed assets to net worth ratios is due to non-financial subsidiaries which have high liquidity
and low fixed assets to net worth ratio, with the consequent increase in the consolidated finance fixed assets to net worth ratio. Whenever necessary, we may
reallocate funds to the financial companies through the payment of dividends/interest on shareholders’ equity to financial companies or a corporate restructuring
between the financial and non-financial companies, thus improving the ratio.


Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

164 Report on Economic and Financial Analysis – June 2014
15) INTANGIBLE ASSETS

a) Goodwill

The goodwill recorded in investment acquisitions totaled R$ 2,536,621 thousand, net of accumulated amortization, when applicable, of which: (i) R$ 613,086
thousand represents the difference between the purchase price and the fair value of the net assets acquired, which is recorded in Permanent Assets -
Investments (BM&FBOVESPA and Integritas/Fleury shares), amortized when disposed; and (ii) R$ 1,923,535 thousand, net of accumulated amortization, for
future performance/customer portfolio, which is amortized over 20 years, where applicable.

In the 1
st
semester of 2014, goodwill was amortized in the amount of R$ 56,838 thousand (R$ 132,579 thousand in the 1
st
semester of 2013) and R$ 28,532
thousand in the 2
nd
quarter of 2014 (R$ 28,306 thousand on the 1
st
quarter of 2014) (Note 29).
b) Intangible assets

Acquired intangible assets consist of:


R$ thousand
Amortization rate
(1)
Cost Amortization
Cost net of amortization
2014 2013
June 30 March 31 June 30
Acquisition of banking services rights Contract (4) 4,897,799 (2,639,736) 2,258,063 2,437,077 2,923,617
Software (2) 20% to 50% 8,330,486 (4,301,267) 4,029,219 4,088,092 3,565,492
Future profitability/customer portfolio (3) Up to 20% 2,503,340 (579,805) 1,923,535 1,973,753 2,159,975
Other (5) Contract 685,079 (215,795) 469,284 501,683 542,656
Total on June 30, 2014 16,416,704 (7,736,603) 8,680,101
Total on March 31, 2014 16,260,103 (7,259,498) 9,000,605
Total on June 30, 2013 17,581,168 (8,389,428) 9,191,740

(1) Intangible assets are amortized over an estimated period of economic benefit and recognized in “other administrative expenses” and “other operating expenses”, where applicable;
(2) Software acquired and/or developed by specialized companies;
(3) Mainly composed of goodwill on the acquisition of equity interest in Banco Bradescard (currently Banco Ibi) - R$ 795,863 thousand, Odontoprev - R$ 233,119 thousand, Bradescard Mexico (currently Ibi
México) - R$ 21,551 thousand, Europ Assistance Serviços de Assistência Personalizados - R$ 14,527 thousand and Cielo/Investees - R$ 655,512 thousand;
(4) Based on the pay-back of each agreement; and
(5) Mainly refers to the 2016 Olympic Games sponsorship program.

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 165
c) Changes in intangible assets by type




R$ thousand
Acquisition of banking
service rights
Software
Future profitability/
customer portfolio
Other Total
Balance on December 31, 2013 2,589,021 4,015,462 2,005,474 535,982 9,145,939
Additions (reductions) 82,266 453,981 (25,101) (1,761) 509,385
Amortization for the period (413,224) (440,224) (56,838) (64,937) (975,223)
Balance on June 30, 2014 2,258,063 4,029,219 1,923,535 469,284 8,680,101

16) DEPOSITS, FEDERAL FUNDS PURCHASED AND SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND FUNDS FROM ISSUANCE OF
SECURITIES

a) Deposits


R$ thousand
2014 2013
1 to 30
days
31 to 180
days
181 to 360
days
More than
360 days
June 30 March 31 June 30
? Demand deposits (1) 36,176,242 - - - 36,176,242 38,569,323 36,586,408
? Savings deposits (1) 84,318,918 - - - 84,318,918 82,098,295 72,627,265
? Interbank deposits 108,236 182,264 39,246 191,281 521,027 654,821 698,884
? Time deposits (2) 14,998,366 20,014,365 8,994,050 48,247,565 92,254,346 97,387,056 98,572,968
Overall total on June 30, 2014 135,601,762 20,196,629 9,033,296 48,438,846 213,270,533
% 63.6 9.5 4.2 22.7 100.0
Overall total on March 31, 2014 136,664,471 19,483,137 11,893,889 50,667,998 218,709,495
% 62.5 8.9 5.4 23.2 100.0
Overall total on June 30, 2013 123,031,147 15,610,811 10,633,508 59,210,059 208,485,525
% 59.0 7.5 5.1 28.4 100.0

(1) Classified as “1 to 30 days”, not considering average historical turnover; and
(2) Considers the actual maturities of investments.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

166 Report on Economic and Financial Analysis – June 2014
b) Federal funds purchased and securities sold under agreements to repurchase

R$ thousand
2014 2013
1 to 30
days
31 to 180
days
181 to 360
days
More than
360 days
June 30 March 31 June 30
Own portfolio 66,435,469 31,454,915 10,405,864 23,403,544 131,699,792 137,072,756 135,424,066
? Government securities 62,515,279 205,881 24,304 2,718 62,748,182 72,360,296 70,952,832
? Debentures of own issuance 1,877,880 31,249,034 10,381,560 22,769,976 66,278,450 63,822,962 60,076,720
? Foreign 2,042,310 - - 630,850 2,673,160 889,498 4,394,514
Third-party portfolio (1) 121,127,549 1,018,548 - - 122,146,097 112,795,792 110,974,509
Unrestricted portfolio (1) 1,006,745 441,411 316,943 - 1,765,099 847,482 20,426,545
Overall total on June 30, 2014 (2) 188,569,763 32,914,874 10,722,807 23,403,544 255,610,988
% 73.8 12.9 4.2 9.1 100.0
Overall total on March 31, 2014 (2) 187,205,689 32,306,134 9,006,861 22,197,346 250,716,030
% 74.7 12.9 3.6 8.8 100.0
Overall total on June 30, 2013 (2) 201,698,323 36,649,541 10,618,720 17,858,536 266,825,120
% 75.6 13.7 4.0 6.7 100.0

(1) Represented by government securities; and
(2) Includes R$ 74,741,206 thousand (R$ 66,573,426 thousand on March 31, 2014 and R$ 66,498,553 thousand on June 30, 2013) of investment funds in purchase and sale commitments with Bradesco,
whose quota holders are subsidiaries included in the consolidated financial statements (Notes 8a, b, c and d).

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 167
c) Funds from issuance of securities

R$ thousand
2014 2013
1 to 30
days
31 to 180
days
181 to 360
days
More than
360 days
June 30 March 31 June 30
Securities -Brazil:
- Mortgage bonds 72,017 296,516 188,422 7,963 564,918 591,165 682,676
- Letters of credit for real estate 412,690 2,462,818 5,958,229 232,040 9,065,777 7,023,452 4,789,420
- Letters of credit for agribusiness 181,522 893,100 870,097 1,912,537 3,857,256 4,643,358 4,349,457
- Financial bills 347,320 3,069,398 18,951,202 25,742,609 48,110,529 41,688,036 31,878,472
Subtotal 1,013,549 6,721,832 25,967,950 27,895,149 61,598,480 53,946,011 41,700,025
Securities - abroad:
- MTN Program Issues (1) 79,076 495,038 1,746,582 3,338,950 5,659,646 7,722,808 8,831,091
- Securitization of future flow of money orders received from abroad (Note 16d) 5,207 388,667 328,885 1,699,414 2,422,173 2,687,724 3,308,621
- Issuance costs - - - (13,719) (13,719) (15,404) (19,127)
Subtotal 84,283 883,705 2,075,467 5,024,645 8,068,100 10,395,128 12,120,585
Structured operations certificates 696 40,736 109,971 58,758 210,161 169,470 -
Overall total on June 30, 2014 1,098,528 7,646,273 28,153,388 32,978,552 69,876,741
% 1.6 10.9 40.3 47.2 100.0
Overall total on March 31, 2014 1,719,026 8,023,374 16,816,138 37,952,071 64,510,609
% 2.7 12.4 26.1 58.8 100.0
Overall total on June 30, 2013 2,456,190 11,178,066 11,208,441 28,977,913 53,820,610
% 4.6 20.8 20.8 53.8 100.0

(1) Issuance of securities on the international market to invest in foreign exchange transactions, pre-export financing, import financing and working capital financing, predominately in the medium and long
terms.

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Notes to the Consolidated Financial Statements

168 Report on Economic and Financial Analysis – June 2014
d) Since 2003, Bradesco has used certain agreements to optimize its funding and liquidity management
activities by using SPEs - Special Purpose Entities. An SPE, also known as a Diversified Payment Rights
Company outside Brazil, is financed with long-term debt and settled through future cash flows from
underlying assets which basically include flows from current payment orders and future remittances
made by individuals and companies located abroad to beneficiaries in Brazil for which the Bank acts as
a paying agent.
Long-term securities issued by the SPE and sold to investors are settled with proceeds from the payment
order flows. Bradesco is obliged to redeem these securities in specific cases of delinquency or if the
SPE discontinues operations.
Funds from the sale of current and future payment order flows, received by the SPE, must be maintained
in a specific bank account until a minimum amount has been reached.
Below are the main features of the notes issued by SPEs:

R$ thousand
Date of issue
Amount of
the operation
Maturity
Total
2014 2013
June 30 March 31 June 30
Securitization of future flow
of payment orders received from
abroad
6.11.2007 481,550 5.20.2014 - - 103,975
6.11.2007 481,550 5.20.2014 - - 103,624
12.20.2007 354,260 11.20.2014 22,015 45,176 110,626
3.6.2008 836,000 5.22.2017 604,891 678,021 829,738
12.19.2008 1,168,500 2.20.2019 989,573 1,073,198 1,106,175
12.17.2009 133,673 11.20.2014 13,685 28,163 69,000
12.17.2009 133,673 2.20.2017 86,303 97,503 121,644
12.17.2009 89,115 2.20.2020 85,900 92,230 102,139
8.20.2010 307,948 8.21.2017 230,557 256,633 309,268
9.29.2010 170,530 8.21.2017 131,771 146,674 176,756
11.16.2011 88,860 11.20.2018 97,526 105,858 109,230
11.16.2011 133,290 11.22.2021 159,952 164,268 166,446
Total 2,422,173 2,687,724 3,308,621

e) Cost for market funding and inflation and interest adjustments of technical reserves for
insurance, pension plans and capitalization bonds
R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Savings deposits 1,292,757 1,281,055 2,573,812 1,828,695
Time deposits 2,392,490 2,406,574 4,799,064 3,764,124
Federal funds purchased and securities sold under agreements to
repurchase 5,734,457 5,271,917 11,006,374 9,824,396
Funds from issuance of securities 1,643,208 1,395,769 3,038,977 1,888,153
Other funding expenses 116,561 109,931 226,492 192,014
Subtotal 11,179,473 10,465,246 21,644,719 17,497,382
Cost for inflation and interest adjustment of technical reserves of
insurance, pension plans and capitalization bonds 2,492,083 2,580,982 5,073,065 1,909,077
Total 13,671,556 13,046,228 26,717,784 19,406,459
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements


Bradesco 169

17) BORROWING AND ONLENDING
a) Borrowing

R$ thousand
2014 2013
1 to 30
days
31 to 180
days
181 to 360
days
More than
360 days
June 30 March 31 June 30
In Brazil - other institutions 5,686 - - 14,179 19,865 14,499 10,655
Abroad 2,635,785 6,350,640 3,878,142 843,258 13,707,825 15,652,592 11,077,072
Overall total on June 30, 2014 2,641,471 6,350,640 3,878,142 857,437 13,727,690
% 19.2 46.3 28.3 6.2 100.0
Overall total on March 31, 2014 3,314,866 8,415,226 2,965,862 971,137 15,667,091
% 21.2 53.7 18.9 6.2 100.0
Overall total on June 30, 2013 2,433,011 4,265,564 3,352,342 1,036,810 11,087,727
% 21.9 38.5 30.2 9.4 100.0

b) Onlending

R$ thousand
2014 2013
1 to 30
days
31 to 180
days
181 to 360
days
More than
360 days
June 30 March 31 June 30
In Brazil 1,143,497 5,024,600 5,692,018 28,340,766 40,200,881 40,883,232 37,896,430
- National Treasury - - 1,109 - 1,109 2,289 17,444
- BNDES 379,976 1,288,802 1,592,920 8,124,315 11,386,013 11,719,610 11,860,989
- CEF 1,926 8,681 5,781 13,515 29,903 34,921 49,065
- FINAME 761,595 3,727,117 4,090,950 20,202,564 28,782,226 29,124,787 25,967,289
- Other institutions - - 1,258 372 1,630 1,625 1,643
Abroad 6,192 71 206,482 - 212,745 173,694 136,862
Overall total on June 30, 2014 1,149,689 5,024,671 5,898,500 28,340,766 40,413,626
% 2.9 12.4 14.6 70.1 100.0
Overall total on March 31, 2014 1,333,700 5,008,263 5,625,750 29,089,213 41,056,926
% 3.2 12.2 13.7 70.9 100.0
Overall total on June 30, 2013 1,246,376 4,766,262 5,695,185 26,325,469 38,033,292
% 3.3 12.5 15.0 69.2 100.0
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

170 Report on Economic and Financial Analysis – June 2014
c) Borrowing and onlending expenses

R$ thousand
2014 2013

2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Borrowing:
- In Brazil 2,277 113 2,390 22,630
- Abroad 28,292 31,940 60,232 62,139
Subtotal borrowing 30,569 32,053 62,622 84,769
Onlending in Brazil:
- National Treasury 9 240 249 614
- BNDES 167,292 178,574 345,866 333,703
- CEF 491 631 1,122 1,769
- FINAME 157,858 174,849 332,707 449,077
- Other institutions 3 13 16 293
Onlending abroad:
- Payables to foreign bankers (Note 11a) (9,043) (18,573) (27,616) 740,531
- Other expenses with foreign onlending (998,872) (1,329,516) (2,328,388) 3,065,597
- Exchange variation from investments abroad 512,565 744,405 1,256,970 (1,651,336)
Subtotal onlending (169,697) (249,377) (419,074) 2,940,248
Total (139,128) (217,324) (356,452) 3,025,017

18) PROVISIONS, CONTINGENT ASSETS AND LIABILITIES AND LEGAL LIABILITIES - TAX AND
SOCIAL SECURITY
a) Contingent assets
Contingent assets are not recognized in the financial statements. However, there are ongoing
proceedings where the chance of success is considered probable, such as: a) Social Integration
Program (PIS), claiming to offset PIS against Gross Operating Income, paid under Decree-Laws
n
o
2445/88 and n
o
2449/88, regarding the payment that exceeded the amount due under
Supplementary Law n
o
07/70 (PIS Repique); and b) other taxes, the legality and/or constitutionality of
which is being challenged, where the decision may lead to reimbursement of amounts paid.

b) Provisions classified as probable losses and legal obligations - tax and social security
Bradesco Organization is a party to a number of labor, civil and tax lawsuits, arising from the normal
course of business.

Management recorded provisions based on their opinion and of their legal counsel, the nature of the
lawsuit, similarity to previous lawsuits, complexity and the courts standing, where the loss is deemed
probable.

Management considers that the provision is sufficient to cover losses generated by the respective
lawsuits.

Liability related to litigation is held until the conclusion to the lawsuit, represented by judicial decisions,
with no further appeals or due to the statute of limitation.
I - Labor claims
These are claims brought by former employees and outsourced employees seeking
indemnifications, especially for unpaid overtime, according to Article 224 of the Consolidation of
Labor Laws (CLT). In proceedings in which a judicial deposit is used to guarantee the execution of
the judgment, the labor provision is made considering the estimated loss of these deposits. For
other proceedings, the provision is based on the average of payments made for claims settled over
the last 12 months.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 171
Overtime is monitored by using electronic time cards and paid regularly during the employment
contract and, accordingly, the claims filed by former employees do not represent significant
amounts.
II - Civil claims
These are claims for pain and suffering and property damages, mainly relating to protests, returned
checks, the inclusion of information about debtors in the credit restriction registry and the
replacement of inflation adjustments excluded as a result of government economic plans. These
lawsuits are individually controlled using a computer-based system and provisioned whenever the
loss is deemed as probable, considering the opinion of Management and their legal counsel, the
nature of the lawsuits, and similarity with previous lawsuits, complexity and positioning of the courts.

Most of these lawsuits are brought to the Special Civil Court (JEC), in which the claims are limited
to 40 times the minimum wage and do not cause significant impact on Bradesco Organization’s
financial position.

It is worth mentioning the significant number of legal claims pleading alleged differences in
adjustment for inflation on savings account balances is due to the implementation of economic
plans that were part of the federal government’s economic policy to reduce inflation in the ‘80s and
‘90s.

Although Bradesco complied with the law and regulation in force at the time, these lawsuits have
been recorded in provisions, taking into consideration the claims where the Bank is the defendant
and the perspective of loss, which is considered after the analysis of each demand, based on the
current decision of the Superior Court of Justice (STJ).

Note that, regarding disputes relating to economic plans, the Federal Supreme Court (STF)
suspended the prosecution of all lawsuits on cognizance stage, until the Court issues a final
decision on the right under litigation.

III - Legal obligations - provision for tax risks
The Bradesco Organization is disputing the legality and constitutionality of certain taxes and
contributions in court, for which provisions have been recorded in full, although there is good
chance of a favorable outcome, based on the opinion of Management and their legal counsel. The
processing of these legal obligations whose risk is deemed as probable is regularly monitored in
the legal court. During or after the conclusion of each case, a favorable outcome may arise for the
Organization, resulting in the reversal of the related provisions.

The main cases are:
- Cofins – R$ 2,522,979 thousand (R$ 2,422,013 thousand on March 31, 2014 and R$ 9,993,073
thousand on June 30, 2013): a request for authorization to calculate and pay Cofins based on
effective income, as set forth in Article 2 of Supplementary Law n
o
70/91, removing the
unconstitutional increase in the calculation for other revenues other than income;
- INSS Autonomous Brokers – R$ 1,414,168 thousand (R$ 1,367,973 thousand on March 31,
2014 and R$ 1.221.705 thousand on June 30, 2013): we are requesting the impact of social
security contribution on remunerations paid to third-party service providers, established by
Supplementary Law n
o
84/96 and subsequent regulations/amendments, at the 20.0% rate and
additionally 2.5%, on the grounds that services are not provided to insurance companies but to
policyholders, thus being outside the incidence of the contribution provided for in item I, Article
22 of Law n
o
8212/91, as new wording in Law n
o
9876/99;

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

172 Report on Economic and Financial Analysis – June 2014
- IRPJ/Credit Losses - R$ 1,912,596 thousand (R$ 1,881,607 thousand on March 31, 2014 and
R$ 1,713,111 thousand on June 30, 2013): we are requesting to deduct from income tax and
social contributions payable (IRPJ and CSLL, respectively) amounts of actual and definite loan
losses related to unconditional discounts granted upon receipt of claims incurred, regardless if
they comply with the terms and conditions provided for in Articles 9 to 14 of Law n
o
9430/96 that
only apply to temporary losses; and
- PIS - R$ 314,672 thousand (R$ 312,670 thousand on March 31, 2014 and R$ 305,648 thousand
on June 30, 2013): we are requesting the authorization to offset overpaid amounts in 1994 and
1995 as PIS contribution, corresponding to the surplus on the calculation established in the
Constitution, i.e., gross operating income, as defined in the income tax legislation - set out in
Article 44 of Law n
o
4506/64, excluding interest income.
IV - Provisions by nature

R$ thousand
2014 2013
June 30 March 31 June 30
Labor claims 2,471,829 2,507,534 2,471,717
Civil claims 3,822,249 3,808,201 3,765,509
Subtotal (1) 6,294,078 6,315,735 6,237,226
Provision for tax risks (2) 8,345,491 8,087,164 16,452,731
Total 14,639,569 14,402,899 22,689,957

(1) Note 20b; and
(2) Classified under “Other liabilities - tax and social security” (Note 20a).

V - Changes in provisions

R$ thousand
2014
Labor Civil Tax (1)
Balance on December 31, 2013 2,537,405 3,823,499 7,728,691
Adjustment for inflation 141,207 176,099 246,566
Provisions, net of reversals and write-offs 407,075 161,953 394,185
Payments (613,858) (339,302) (23,951)
Balance on June 30, 2014 2,471,829 3,822,249 8,345,491

(1) Mainly include legal liabilities.

c) Contingent liabilities classified as possible losses
The Bradesco Organization maintains a system to monitor all administrative and judicial proceedings
in which the institution is plaintiff or defendant and, based on the opinion of legal counsel, classifies
the lawsuits according to the expectation of loss. Case law trends are periodically analyzed and, if
necessary, the related risk is reclassified. In this respect, contingent lawsuits deemed with the risk of
a possible loss are not recorded as a liability in the financial statements. The main proceedings in this
category are the following: a) leasing companies’ Tax on Services of any Nature (ISSQN), total lawsuits
correspond to R$ 1,753,024 thousand (R$ 1,728,473 thousand on March 31, 2014 and R$ 1,151,684
thousand on June 30, 2013) which relates to the municipal tax demands other than those where the
company is not located and where, under law, tax is collected; b) 2006-2010 income tax and social
contribution, relating to goodwill amortization being disallowed on the acquisition of investments, for
the amount of R$ 3,456,648 thousand (R$ 1,562,363 thousand on March 31, 2014 and R$ 838,399
thousand on June 30, 2013); c) IRPJ and CSLL deficiency notice relating to disallowance of loan loss
expenses, for the amount of R$ 553,964 thousand (R$ 544,185 thousand on March 31, 2014, and R$
482,515 thousand on June 30, 2013); d) IRPJ and CSLL deficiency note relating to disallowance of
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 173
exclusions of revenues from mark-to-market securities from 2007 to 2010, difference in depreciation
and operating expenses and income, amounting to R$ 469,140 thousand (R$ 464,734 thousand on
March 31, 2014 and R$ 229,556 thousand on June 30, 2013); and e) IRPJ, CSLL, PIS and COFINS
deficiency note, amounting to R$ 340,529 thousand (R$ 337,028 thousand on March 31, 2014 and
R$ 334,433 thousand on June 30, 2013), on alleged tax-exempt gain, when Bovespa shares were
merged into Nova Bolsa (BM&FBovespa), in 2008.

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Notes to the Consolidated Financial Statements

174 Report on Economic and Financial Analysis – June 2014
19) SUBORDINATED DEBT


R$ thousand
2014 2013
Maturity
Original term
in years
Amount of the
operation
Currency Remuneration June 30 March 31 June 30
In Brazil:
Subordinated CDB:
2013 (1) 5 - R$ 100.0% of CDI rate + 1.0817% p.a. - - 389,701
2014 6 1,000,000 R$ 112.0% of CDI rate 1,789,726 1,740,701 1,614,055
IPCA + (6.92% p.a. - 8.55% p.a.)
2015 6 1,274,696 R$ 108.0% to 112.0% of CDI rate 2,511,913 2,418,670 2,181,647
2016 6 500 R$ IPCA + 7.1292% p.a. 896 866 785
2019 10 20,000 R$ IPCA + 7.76% p.a. 38,501 37,133 33,539
Financial notes:
IGP-M + 6.3874% p.a.
IPCA + (6.7017% p.a. - 6.8784% p.a.)
Fixed rate of 13.0949% p.a.
2016 6 102,018 R$ 108.0% to 110.0% of CDI rate 156,857 151,814 139,081
100.0% of CDI rate + (1.2685%p.a. - 1.3656% p.a.)
IGP-M + (5.7745% p.a. – 6.9588% p.a.)
IPCA + (5.6030% p.a. - 7.5482% p.a.)
Fixed rate (11.7493% p.a. – 13.8609% p.a.)
2017 6 8,630,999 R$ 104.0% to 112.5% of CDI rate 9,686,759 9,472,766 9,299,086
100.0% of CDI rate + (0.7855%p.a. - 1.3061% p.a.)
IGP-M + (4.0147% p.a. – 6.2626% p.a.)
IPCA + (3.6712% p.a. - 6.2822% p.a.)
Fixed rate (9.3991% p.a. – 12.1754% p.a.)
2018 6 8,262,799 R$ 105.0% to 112.2% of CDI rate 8,878,067 8,851,047 8,598,215
IGP-M + (3.6320% p.a. – 4.0735% p.a.)
IPCA + (3.2983% p.a. - 4.4268% p.a.)
Fixed rate (9.3207% p.a. – 10.3107% p.a.)
2019 6 21,858 R$ 109.3% to 109.5% of CDI rate 24,946 24,288 22,529
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 175

R$ thousand
2014 2013
Maturity
Original term
in years
Amount of the
operation
Currency Remuneration June 30 March 31 June 30
IPCA + 7.4163% p.a.
2017 7 40,100 R$ Fixed rate of 13.1763% p.a. 68,025 65,770 59,726
IGP-M + 6.6945% p.a.
2018 7 141,050 R$ IPCA + (5.9081% p.a. - 7.3743% p.a.) 206,345 200,017 180,548
100.0% of CDI rate + (1.0079% p.a. – 1.0412% p.a.)
IGP-M rate + 4.1768 p.a.
IPCA + (4.0262% p.a. - 6.1757% p.a.)
Fixed rate (10.1304% p.a. – 11.7550% p.a.)
2019 7 3,172,835 R$ 110.5% to 112.2% of CDI rate 3,273,413 3,337,420 3,223,683
2020 7 1,700 R$ IPCA + 4.2620% p.a. 1,944 1,891 1,750
2018 8 50,000 R$ IGP-M + 7.0670% p.a. 78,622 77,230 68,985
IGP-M + 5.8351% p.a.
IPCA + (5.8950% p.a. - 6.3643% p.a.)
2019 8 12,735 R$ Fixed rate of 13.3381% p.a. 18,202 17,635 16,049
IGP-M + 5.5341% p.a.
IPCA + (3.9941% p.a. - 6.1386% p.a.)
Fixed rate (11.1291% p.a. – 11.8661% p.a.)
2020 8 28,556 R$ 110.0% to 110.7% of CDI rate 35,722 34,667 31,961
2021 8 1,236 R$ IPCA + (3.7004% p.a. - 4.3419% p.a.) 1,423 1,384 1,286
2021 9 7,000 R$ 111.0% of CDI rate 8,380 8,152 7,564
IGP-M + (6.0358% p.a. - 6.6244% p.a.)
IPCA + (5.8789% p.a. - 7.1246% p.a.)
Fixed rate of 12.7513% p.a.
2021 10 19,200 R$ 109.0% of CDI rate 26,576 25,733 23,491
IGP-M + (3.9270% p.a. – 4.2994% p.a.)
IPCA + (4.1920% p.a. - 6.0358% p.a.)
Fixed rate (10.3489% p.a. – 12.4377% p.a.)
2022 10 54,143 R$ 110.0% to 111.3% of CDI rate 66,903 65,003 59,969
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

176 Report on Economic and Financial Analysis – June 2014

R$ thousand
2014 2013
Maturity
Original term
in years
Amount of the
operation
Currency Remuneration June 30 March 31 June 30
IGP-M + (3.5855% p.a. – 3.9984% p.a.)
IPCA + (3.9292% p.a. - 4.9620% p.a.)
2023 10 688,064 R$ Fixed rate (10.6804% p.a. – 10.8971% p.a.) 781,193 757,952 714,738
CDB pegged to loans:
2014 to 2016 2 to 3 3,168 R$ 100.0% of CDI rate 3,882 4,260 5,310
Subtotal in Brazil 27,658,295 27,294,399 26,673,698
Abroad:
2013 (2) 10 - US$ Rate of 8.75% p.a. - - 1,125,555
2014 (3) 10 - Euro Rate of 8.00% p.a. - 727,278 658,875
2019 10 1,333,575 US$ Rate of 6.75% p.a. 1,680,060 1,697,568 1,690,364
2021 11 2,766,650 US$ Rate of 5.90% p.a. 3,611,697 3,657,202 3,632,012
2022 11 1,886,720 US$ Rate of 5.75% p.a. 2,463,428 2,495,087 2,477,196
Issuance costs on funding (29,484) (31,622) (35,594)
Subtotal abroad 7,725,701 8,545,513 9,548,408
Overall total 35,383,996 35,839,912 36,222,106

(1) Subordinated debt transactions that matured in July 2013.
(2) Subordinated debt transactions that matured in October 2013; and
(3) Subordinated debt transactions that matured in April 2014.

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 177
20) OTHER LIABILITIES
a) Tax and social security


R$ thousand
2014 2013
June 30 March 31 June 30
Provision for tax risk (Note 18b IV) 8,345,491 8,087,164 16,452,731
Provision for deferred income tax (Note 34f) 3,549,785 3,324,071 4,255,124
Taxes and contributions on profit payable 3,581,915 1,960,189 3,320,455
Taxes and contributions payable 966,608 1,245,893 1,027,693
Total 16,443,799 14,617,317 25,056,003

b) Sundry


R$ thousand
2014 2013
June 30 March 31 June 30
Credit card operations 15,367,177 15,205,642 14,180,731
Sundry creditors 8,262,057 7,665,135 5,792,748
Civil and labor provisions (Note 18b IV) 6,294,078 6,315,735 6,237,226
Provision for payments 5,500,683 4,959,783 4,849,547
Loan assignment obligations 4,116,965 4,020,680 321,700
Liabilities for acquisition of assets and rights 1,052,583 1,159,209 1,805,985
Other (1) 1,772,976 1,758,695 1,399,488
Total 42,366,519 41,084,879 34,587,425

(1) On June 30, 2014, it includes provision for collateral, comprising sureties, guarantees, letters of credit and standby letter of credit,
which was recorded in a separate account from the excess provision, totaling R$ 333,734 thousand (R$ 355,479 thousand on March
31, 2014) (Note 10g).






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Notes to the Consolidated Financial Statements

178 Report on Economic and Financial Analysis – June 2014
21) INSURANCE, PENSION PLANS AND CAPITALIZATION BONDS

a) Technical reserves by account


R$ thousand
Insurance (1) Life and pension plans (2) (3) (4) Capitalization bonds Total
2014 2013 2014 2013 2014 2013 2014 2013
June 30 March 31 June 30 June 30 March 31 June 30 June 30 March 31 June 30 June 30 March 31 June 30
Current and long-term
liabilities
Mathematical reserve for
unvested benefits 777,834 767,362 931,421 110,514,341 106,417,460 98,622,773 - - - 111,292,175 107,184,822 99,554,194
Mathematical reserve for
vested benefits 170,728 169,205 189,915 6,817,724 6,767,511 6,174,238 - - - 6,988,452 6,936,716 6,364,153
Mathematical reserve for
capitalization bonds - - - - - - 5,519,643 5,350,899 4,976,376 5,519,643 5,350,899 4,976,376
Reserve for claims incurred
but not reported (IBNR) 1,647,910 1,680,781 1,392,704 1,082,645 1,108,440 1,191,230 - - - 2,730,555 2,789,221 2,583,934
Unearned premium reserve 3,795,702 3,471,271 3,025,645 286,068 289,380 212,528 - - - 4,081,770 3,760,651 3,238,173
Complementary reserve for
coverage (4) - - - 1,233,857 712,108 4,978,649 - - - 1,233,857 712,108 4,978,649
Reserve for unsettled claims 3,982,669 3,747,572 3,516,427 996,324 983,040 1,170,537 - - - 4,978,993 4,730,612 4,686,964
Reserve for financial surplus - - - 411,768 409,116 378,511 - - - 411,768 409,116 378,511
Reserve for draws and
redemptions - - - - - - 657,274 644,133 584,435 657,274 644,133 584,435
Other reserves (4) 1,897,513 1,890,968 2,642,031 2,850,501 3,255,400 1,654,392 89,888 86,159 177,051 4,837,902 5,232,527 4,473,474
Total reserves 12,272,356 11,727,159 11,698,143 124,193,228 119,942,455 114,382,858 6,266,805 6,081,191 5,737,862 142,732,389 137,750,805 131,818,863






Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 179
b) Technical reserves by product


R$ thousand
Insurance Life and pension plans (4) Capitalization bonds Total
2014 2013 2014 2013 2014 2013 2014 2013
June 30 March 31 June 30 June 30 March 31 June 30 June 30 March 31 June 30 June 30 March 31 June 30
Health 6,301,129 6,079,164 6,649,640 - - - - - - 6,301,129 6,079,164 6,649,640
Auto/RCF 3,199,193 2,926,741 2,739,910 - - - - - - 3,199,193 2,926,741 2,739,910
DPVAT/Retrocession (5) 267,604 318,434 215,639 3,909 3,915 572,318 - - - 271,513 322,349 787,957
Life 15,085 16,053 16,223 6,254,123 6,044,904 5,218,269 - - - 6,269,208 6,060,957 5,234,492
Basic lines 2,489,345 2,386,767 2,076,731 - - - - - - 2,489,345 2,386,767 2,076,731
Unrestricted Benefits
Generating Plan - PGBL to be
granted - - - 19,792,805 19,311,853 18,222,159 - - - 19,792,805 19,311,853 18,222,159
Long-Term Life Insurance -
VGBL - to be granted - - - 78,317,241 75,017,867 69,696,077 - - - 78,317,241 75,017,867 69,696,077
Pension plans (4) - - - 19,825,150 19,563,916 20,674,035 - - - 19,825,150 19,563,916 20,674,035
Capitalization bonds - - - - - - 6,266,805 6,081,191 5,737,862 6,266,805 6,081,191 5,737,862
Total technical reserves 12,272,356 11,727,159 11,698,143 124,193,228 119,942,455 114,382,858 6,266,805 6,081,191 5,737,862 142,732,389 137,750,805 131,818,863
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

180 Report on Economic and Financial Analysis – June 2014
c) Guarantees for technical reserves


R$ thousand
Insurance Life and pension plans (4) Capitalization bonds Total
2014 2013 2014 2013 2014 2013 2014 2013
June 30 March 31 June 30 June 30 March 31 June 30 June 30 March 31 June 30 June 30 March 31 June 30
Total technical reserves 12,272,356 11,727,159 11,698,143 124,193,228 119,942,455 114,382,858 6,266,805 6,081,191 5,737,862 142,732,389 137,750,805 131,818,863
(-) Loading on insurance sales
– extended guarantee (259,127) (245,778) (94,676) - - - - - - (259,127) (245,778) (94,676)
(-) Portion corresponding to
contracted reinsurance (900,478) (856,699) (819,881) (3,897) (5,664) (11,377) - - - (904,375) (862,363) (831,258)
(-) Deposits retained at IRB
and court deposits (2,318) (2,318) (26,611) (51,461) (55,827) (55,836) - - - (53,779) (58,145) (82,447)
(-) Receivables (1,003,348) (909,355) (831,130) - - - - - - (1,003,348) (909,355) (831,130)
(-) Unearned premium reserve
– Health Insurance (6) (852,356) (795,412) (715,409) - - - - - - (852,356) (795,412) (715,409)
(-) Reserves from DPVAT
agreements (5) (261,316) (312,117) (209,831) - - (568,063) - - - (261,316) (312,117) (777,894)
To be insured 8,993,413 8,605,480 9,000,605 124,137,870 119,880,964 113,747,582 6,266,805 6,081,191 5,737,862 139,398,088 134,567,635 128,486,049

Investment fund quotas (VGBL
and PGBL) - - - 98,110,046 94,329,720 87,918,236 - - - 98,110,046 94,329,720 87,918,236
Investment fund quotas
(excluding VGBL and PGBL) 5,453,230 6,619,315 3,436,152 16,433,173 16,174,067 14,878,511 3,929,823 3,750,073 3,484,916 25,816,226 26,543,455 21,799,579
Government securities 4,895,002 4,042,444 6,655,086 9,228,843 9,026,894 9,707,320 2,015,514 1,990,274 1,867,972 16,139,359 15,059,612 18,230,378
Private securities 108,568 154,456 101,566 182,544 189,985 199,594 63,589 60,711 115,976 354,701 405,152 417,136
Shares 4,597 4,324 5,544 1,529,005 1,119,968 1,424,865 392,060 370,933 347,371 1,925,662 1,495,225 1,777,780
Total technical reserve
guarantees 10,461,397 10,820,539 10,198,348 125,483,611 120,840,634 114,128,526 6,400,986 6,171,991 5,816,235 142,345,994 137,833,164 130,143,109

(1) "Other reserves" - Insurance basically refers to technical reserves of the "personal health" portfolio;
(2) Includes personal insurance and pension plans;
(3) "Other reserves" - Life and Pension Plan mainly includes the "Reserve for redemption and other amounts to be settled", "Reserve for related expenses" and "Other reserves";
(4) Up to November 2013, as authorized by Susep, an interest rate based on Bank’s own study was used to discount the actuarial liability flow and, consequently, the item "Complementary Reserve for
Coverage” reflected the result of this rate;
(5) In January 2014, the shutdown of DPVAT insurance consortiums was requested; and
(6) Deduction set forth in Article 4 of ANS Legislative Resolution n
o
314/12.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 181
d) Insurance, pension plan contribution and capitalization bond retained premiums

R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Written premiums 6,678,270 6,436,107 13,114,377 11,126,067
Pension plan contributions (including VGBL) 6,116,223 3,898,491 10,014,714 11,151,510
Capitalization bond income 1,289,952 1,204,915 2,494,867 2,108,921
Granted coinsurance premiums (45,104) (40,728) (85,832) (76,408)
Refunded premiums (46,853) (49,290) (96,143) (118,929)
Net written premiums 13,992,488 11,449,495 25,441,983 24,191,161
Reinsurance premiums (109,137) (67,437) (176,574) (101,647)
Insurance, pension plan and capitalization bond retained
premiums 13,883,351 11,382,058 25,265,409 24,089,514

22) NON-CONTROLLING INTERESTS IN SUBSIDIARIES


R$ thousand
2014 2013
June 30 March 31 June 30
Banco Bradesco BBI S.A. 101,846 134,734 129,036
Other (1) 384,361 414,535 452,966
Total 486,207 549,269 582,002

(1) Mainly related to the non-controlling interest in Odontoprev S.A.

23) SHAREHOLDERS’ EQUITY (PARENT COMPANY)

a) Capital stock in number of shares

Fully subscribed and paid-in capital stock comprises non-par, registered, book-entry shares.


2014 2013
June 30 March 31 June 30
Common shares 2,103,637,129 2,103,637,129 2,103,637,129
Preferred shares 2,103,636,910 2,103,636,910 2,103,636,910
Subtotal 4.207.274.039 4.207.274.039 4.207.274.039
Treasury (common shares) (2,898,610) (2,898,610) (2,898,610)
Treasury (preferred shares) (8,984,870) (8,984,870) (5,265,370)
Total outstanding shares 4,195,390,559 4,195,390,559 4,199,110,059

b) Changes in capital stock in number of shares


Common shares Preferred shares Total
Number of outstanding shares as at December 31, 2013 2,100,738,519 2,095,770,640 4,196,509,159
Shares acquired and not canceled - (1,118,600) (1,118,600)
Number of outstanding shares as at June 30, 2014 2,100,738,519 2,094,652,040 4,195,390,559

c) Interest on shareholders’ equity/dividends

Preferred shares have no voting rights, but are entitled to all other rights and advantages given to
common shares and, in compliance with Bradesco’s Bylaws, have priority for repayment of capital and
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

182 Report on Economic and Financial Analysis – June 2014
an additional ten percent (10%) interest on shareholders’ equity and/or dividends, in accordance with
the provisions of Paragraph 1, item II, of Article 17 of Law n
o
6404/76, amended by Law n
o
10303/01.

According to Bradesco’s Bylaws, shareholders are entitled to interest on shareholders’ equity and/or
dividends amounting to at least 30% of the net income for the year, adjusted in accordance with
Brazilian Corporate Law.

Interest on shareholders’ equity is calculated based on the shareholders’ equity limited to the variation
in the Federal Government Long-Term Interest Rates (TJLP), subject to available profits before
deductions, or transfer to retained earnings or profit reserves for the amounts equivalent or greater
than twice its value.

Bradesco’s capital remuneration policy aims to distribute interest on shareholders’ equity at the
maximum amount calculated under current legislation, and this is included, net of Withholding Income
Tax, in the calculation for mandatory dividends for the year under the Company’s Bylaws.

The Board of Directors’ Meeting held on June 27, 2013 approved the Board of Executive Officers’
proposal to pay shareholders interim interest on shareholders’ equity for the first half of 2013, for the
amount of R$ 830,000 thousand, at R$ 0.188253558 (net of 15% withholding income tax -
R$ 0.160015524) per common share and R$ .207078914 (net of 15% withholding income tax -
R$ 0.176017077) per preferred share, which was paid on July 18, 2013.

The Board of Directors’ Meeting held on December 23, 2013 approved the Board of Executive Officers’
proposal to pay shareholders supplementary interest on shareholders’ equity for 2013, for the amount
of R$ 1,421,300 thousand, at R$ 0.322576529 (net of 15% withholding income tax - R$ 0.274190050)
per common share and R$ 0.354834182 (net of 15% withholding income tax - R$ 0.301609055) per
preferred share, which was paid on March 7, 2014.

The Board of Directors’ Meeting held on February 10, 2014 approved the Board of Executive Officers’
proposal to pay shareholders supplementary interest on shareholders’ equity for 2013, for the amount
of R$ 853,858 thousand, at R$ 0.193826693 per common share and R$ 0.213209362 per preferred
share, which was paid on March 7, 2014.

The Board of Directors’ Meeting held on June 24, 2014 approved the Board of Executive Officers’
proposal to pay shareholders supplementary interest on shareholders’ equity and dividends for the
first semester of 2014, in the amount of R$ 829,000 thousand, at R$ 0.188201395 per common share
and R$ 0.207021535 per preferred share, which was paid on July 18, 2014.

Interest on shareholders’ equity and dividends for the 1
st
semester of 2014 is calculated as follows:

R$ thousand % (1)
Net income for the semester 7,220,930
(-) Legal reserve (361,047)
Adjusted calculation basis 6,859,883
Monthly and supplementary interest on shareholders’ equity (gross), paid and/or provisioned 1,566,898
Withholding income tax on interest on shareholders’ equity (235,035)
Interim dividends provisioned (2) 829,000
Interest on shareholders’ equity (net)/dividends accumulated in the 1
st
semester of 2014 2,160,863 31.50
Interest on shareholders’ equity (net) accumulated in the 1
st
semester of 2013 1,755,950 31.50

(1) Percentage of interest on shareholders’ equity/dividends after adjustments; and
(2) Paid on July 18, 2014.

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 183
Interest on shareholders’ equity was paid or recorded in provisions, as follows:

Description
R$ thousand
Per share (gross)
Gross amount
paid/
recorded
in provision
Withholding
Income Tax
(IRRF)
(15%)
Net amount
paid/
recorded in
provision
Common
shares
Preferred
shares
Monthly interest on shareholders’ equity paid 0.112908 0.124198 475,167 (71,275) 403,892
Intermediate interest on shareholders’ equity paid 0.188254 0.207078 830,000 (124,500) 705,500
Supplementary interest on shareholders’ equity paid 0.172526 0.189779 760,657 (114,099) 646,558
Total in the 1
st
semester of 2013 0.473688 0.521055 2,065,824 (309,874) 1,755,950

Monthly interest on shareholders’ equity paid 0.056454 0.062099 248,712 (37,307) 211,405
Supplementary interest on shareholders’ equity
provisioned 0.218733 0.240607 963,489 (144,523) 818,966
Total in the 1
st
quarter of 2014 0.275187 0.302706 1,212,201 (181,830) 1,030,371
Monthly interest on shareholders’ equity paid 0.056454 0.062099 248,665 (37,300) 211,365
Supplementary interest on shareholders’ equity
provisioned 0.024072 0.026479 106,032 (15,905) 90,127
Interim dividends provisioned (1) 0.188201 0.207022 829,000 - 829,000
Total in the 2
nd
quarter of 2014 0.268727 0.295600 1,183,697 (53,205) 1,130,492
Monthly interest on shareholders’ equity paid 0.112908 0.124198 497,377 (74,607) 422,770
Supplementary interest on shareholders’ equity
provisioned 0.242805 0.267086 1,069,521 (160,428) 909,093
Interim dividends provisioned (1) 0.188201 0.207022 829,000 - 829,000
Total in the 1
st
semester of 2014 0.543914 0.598306 2,395,898 (235,035) 2,160,863

(1) Paid on July 18, 2014.

d) Treasury shares

The Board of Directors’ Meeting held on December 20, 2012 resolved to renew the term for the share
buyback, based on the previous conditions. It was valid until June 26, 2013. The Board of Directors’
Meeting held on June 25, 2013 resolved to renew the term for the share buyback based on the previous
conditions, which remained in force until June 26, 2014. The Board of Directors’ Meeting held on June
24, 2014 resolved to renew the term for the share buyback, based on the previous conditions. It is
valid until June 26, 2015.

A total of 2,898,610 common shares and 8,984,870 preferred shares had been acquired, totaling
R$ 298,015 thousand up to June 30, 2014, and remain in treasury. The minimum, medium and
maximum cost per common share is R$ 23.62221, R$ 25.41203 and R$ 27.14350, and per preferred
share is R$ 25.23185, R$ 27.16272 and R$ 33.12855, respectively. The fair value was R$ 32.24 per
common share and R$ 32.05 per preferred share on June 30, 2014.

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

184 Report on Economic and Financial Analysis – June 2014
24) FEE AND COMMISSION INCOME


R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Credit card income
1,848,593 1,833,681 3,682,274
3,270,045
Checking account
971,880 943,995 1,915,875
1,722,004
Loans
625,433 573,368 1,198,801
1,092,313
Asset management
577,654 561,812 1,139,466
1,131,235
Collections
387,833 379,961 767,794
710,480
Consortium management
213,682 198,925 412,607
343,815
Underwriting / Financial Advisory Services
160,255 220,942 381,197
345,871
Custody and brokerage services
120,776 124,789 245,565
260,211
Payments
99,932 96,433 196,365
165,822
Other
219,586 256,522 476,108
352,822
Total
5,225,624 5,190,428 10,416,052
9,394,618

25) PAYROLL AND RELATED BENEFITS


R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Salaries
1,563,127 1,516,258 3,079,385
2,912,683
Benefits
704,205 697,236 1,401,441
1,311,420
Social security charges
597,713 572,453 1,170,166
1,091,698
Employee profit sharing
326,376 293,259 619,635
521,735
Provision for labor claims
220,288 182,491 402,779
373,916
Training
36,131 17,450 53,581
39,062
Total
3,447,840 3,279,147 6,726,987
6,250,514

26) OTHER ADMINISTRATIVE EXPENSES

R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Outsourced services 923,863 903,415 1,827,278
1,701,779
Depreciation and amortization 463,034 446,196 909,230
843,934
Communication 378,197 375,505 753,702
795,449
Data processing 326,301 335,694 661,995
615,211
Rental 215,859 213,903 429,762
408,578
Transport 199,590 202,885 402,475
404,105
Financial system services 187,589 197,048 384,637
368,050
Advertising and marketing 170,499 178,249 348,748
330,118
Asset maintenance 179,873 151,507 331,380
315,580
Security and surveillance 138,787 138,307 277,094
239,391
Supplies 90,555 77,160 167,715
145,612
Water, electricity and gas 56,790 61,477 118,267
119,349
Travel 34,368 30,252 64,620
60,978
Other 241,522 203,739 445,261
549,909
Total
3,606,827 3,515,337 7,122,164
6,898,043

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 185
27) TAX EXPENSES

R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Contribution for Social Security Financing (Cofins) 799,601 766,001 1,565,602 1,338,441
Social Integration Program (PIS) contribution 146,793 145,986 292,779 226,744
Tax on Services (ISSQN) 140,331 142,543 282,874 260,166
Municipal Real Estate Tax (IPTU) expenses 10,687 30,891 41,578 32,436
Other 71,486 55,854 127,340 110,699
Total 1,168,898 1,141,275 2,310,173 1,968,486

28) OTHER OPERATING INCOME


R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Other interest income 429,528 428,668 858,196 715,617
Reversal of other operating provisions 69,769 114,161 183,930 391,812
Gains on sale of goods 499 6,244 6,743 41,415
Revenues from recovery of charges and expenses 20,075 26,971 47,046 45,550
Other 187,390 235,241 422,631 531,492
Total 707,261 811,285 1,518,546 1,725,886

29) OTHER OPERATING EXPENSES


R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Other finance costs 1,217,380 1,174,765 2,392,145 2,126,242
Sundry losses 411,458 383,073 794,531 803,892
Commissions on loans and financing 333,979 331,678 665,657 651,903
Discount granted 306,624 289,597 596,221 500,797
Intangible assets amortization 208,323 204,901 413,224 454,025
Goodwill amortization (Note 15a) 28,532 28,306 56,838 132,579
Other 500,008 451,072 951,080 662,945
Total 3,006,304 2,863,392 5,869,696 5,332,383

30) NON-OPERATING INCOME (LOSS)



R$ thousand
2014 2013

2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Gain/loss on sale and write-off of assets and investments (1) (74,340) (66,022) (140,362) 68,307
Recording/reversal of non-operating provisions (65,332) (59,310) (124,642) (81,609)
Other 5,078 15,887 20,965 31,435
Total (134,594) (109,445) (244,039) 18,133

(1) The 1
st
semester of 2013 includes results originating from the sale of BM&FBovespa shares in the amount of R$ 148,397 thousand.

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

186 Report on Economic and Financial Analysis – June 2014
31) RELATED-PARTY TRANSACTIONS (DIRECT AND INDIRECT)
a) Related party transactions (direct and indirect) are carried out under conditions and at rates consistent with those entered into with third parties, when
applicable, and effective on the dates of the operations. The transactions are as follows:

R$ thousand
2014 2013 2014 2013

June 30 March 31 June 30 2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Assets
(liabilities)
Assets
(liabilities)
Assets
(liabilities)
Revenues
(expenses)
Revenues
(expenses)
Revenues
(expenses)
Revenues
(expenses)
Interest on shareholders’ equity and dividends: (608,102) (319,325) (512,566) - - - -
Cidade de Deus Companhia Comercial de Participações (447,866) (235,182) (377,504) - - - -
Fundação Bradesco (160,236) (84,143) (135,062) - - - -
Demand deposits/Savings accounts: (21,501) (22,175) (17,687) (214) (199) (413) (269)
BBD Participações S.A. (3) (2) (4) - - - -
Nova Cidade de Deus Participações S.A. (7) (10) (1) - - - -
Cidade de Deus Companhia Comercial de Participações (10) (10) (10) - - - -
Key Management Personnel (21,481) (22,153) (17,672) (214) (199) (413) (269)
Time deposits: (138,028) (143,923) (125,632) (2,069) (2,522) (4,591) (3,300)
Cidade de Deus Companhia Comercial de Participações (61,708) (58,638) (34,522) (17) (20) (37) (20)
Key Management Personnel (76,320) (85,285) (91,110) (2,052) (2,502) (4,554) (3,280)
Federal funds purchased and securities sold under agreements
to repurchase: (480,561) (732,486) (839,669) (15,287) (20,365) (35,652) (13,705)
Cidade de Deus Companhia Comercial de Participações (202,753) (338,965) (555,251) (7,104) (12,168) (19,272) (5,635)
BBD Participações S.A. (150,066) (251,584) (68,762) (5,108) (4,300) (9,408) (396)
Key Management Personnel (127,742) (141,937) (215,656) (3,075) (3,897) (6,972) (7,674)
Funds from issuance of securities: (617,809) (625,146) (559,731) (14,402) (13,688) (28,090) (14,883)
Key Management Personnel (617,809) (625,146) (559,731) (14,402) (13,688) (28,090) (14,883)
Rental of branches: - - - (372) (371) (743) (704)
Fundação Bradesco - - - (372) (371) (743) (704)
Subordinated debts: - (773) (722) (9) (18) (27) (24)
Fundação Bradesco - (773) (722) (9) (18) (27) (24)
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 187
b) Compensation for key Management personnel

Each year, the Annual Shareholders’ Meeting approves:

? The annual overall amount of management compensation, set forth at the Board of Directors
Meetings, to be paid to board members and members of the Board of Executive Officers, as
determined by the Company’s Bylaws; and

? The amount allocated to finance Management pension plans, within the Employee and
Management pension plan of the Bradesco Organization.

For 2014, the maximum amount of R$ 354,700 thousand was set for Management compensation and
R$ 351,900 thousand to finance defined contribution pension plans.

The current policy on Management compensation sets forth that 50% of net variable compensation, if
any, must be allocated to the acquisition of preferred shares of Banco Bradesco S.A., which must be
traded in three equal, annual and successive installments, the first of which maturing in the year
following the payment date. This procedure complies with CMN Resolution n
o
3921/10, which sets
forth a management compensation policy for financial institutions.

Short-term Management benefits


R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Salaries 80,876 81,275 162,151 163,576
INSS contributions 18,158 18,250 36,408 36,745
Total 99,034 99,525 198,559 200,321

Post-employment benefits


R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Defined contribution supplementary pension plans 80,092 81,266 161,358 162,114
Total 80,092 81,266 161,358 162,114

Bradesco does not offer long-term benefits related to severance pay or share-based compensation,
pursuant to CPC 10 – Share-Based Payment, approved by CMN Resolution n
o
3989/11, to its key
Management personnel.

Other information

I) Under current law, financial institutions are not allowed to grant loans or advances to:

a) Officers and members of the advisory, administrative, fiscal or similar councils, as well as to
their respective spouses and family members up to the second degree;

b) Individuals or corporations that own more than 10% of their capital; and

c) Corporations of which the financial institution itself, any officers or administrators of the
institution, as well as their spouses and respective family members up to the second degree
own more than 10%.


Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

188 Report on Economic and Financial Analysis – June 2014
Therefore, no loans or advances are granted by financial institutions to any subsidiary, members
of the Board of Directors or Board of Executive Officers and their relatives.

II) Shareholding

Together, members of the Board of Directors and Board of Executive Officers had the following
shareholding in Bradesco:


2014 2013
June 30 March 31 June 30
? Common shares
0.72% 0.72% 0.73%
? Preferred shares 1.03% 1.01% 1.01%
? Total shares (1) 0.88% 0.87% 0.87%

(1) On June 30, 2014, direct and indirect shareholding of the members of Bradesco’s Board of Directors and Board of Executive Officers
amounted to 3.20% of common shares, 1.08% of preferred shares and 2.14% of all shares.

32) FINANCIAL INSTRUMENTS

a) Fair value
Risk management is highly strategic due to the increasing complexity of services and products and
the globalization of the Organization’s business. The dynamic markets lead Bradesco to an ongoing
improvement of this activity in the pursuit of best practices. For that reason, Bradesco was authorized
by Bacen to use its internal market risk models, which were already in force, to calculate regulatory
capital as of January 2013.

The Organization controls risk management in an integrated and independent manner, preserving
and valuing the Board's decisions, developing and implementing methodologies, models, and
measurement and control tools. It also provides training to employees from all Organization levels,
from the business areas to the Board of Directors.

The management process allows the risks to be proactively identified, measured, mitigated,
monitored and reported, which is necessary in view of the Organization’s complex financial products
and activity profile.

Credit risk management

Credit risk refers to the possibility of losses associated to the non-compliance by the borrower or
counterparty for their respective financial obligations under agreed terms, as well as to the reduction
of the value of a loan agreement resulting from a deterioration of the borrower’s risk rating, reduced
earnings or remuneration, the advantages in renegotiation, recovery costs and other values related
to the counterparty’s non-compliance with its financial obligations.

Credit risk management in the Organization is a continuous and evolving process of mapping,
development, assessment and diagnosis through the use of models, instruments and procedures
that require a high degree of discipline and control during the analysis of operations to preserve the
integrity and autonomy of the processes.

The Organization controls its exposure to credit risk, which mainly results from loans, securities and
derivative financial instruments. Credit risk also stems from financial obligations related to credit
commitments or financial guarantees.

In order not to compromise the quality of the portfolio, it includes all aspects related to the lending
process, concentration, guarantee requirement, terms, among others.

The Organization continuously maps all activities that can generate exposure to credit risk, with their
respective ratings related to probability and magnitude, as well as the identification of their managers,
measurement and mitigation plans.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 189
Market risk management

Market risk is represented by the possibility of financial losses due to fluctuating prices and interest
rates of the Organization’s financial instruments as its asset and liability portfolios may have
mismatched maturities, currencies and indexes.

Market risk is carefully identified, measured, mitigated, controlled and reported. The Organization’s
exposure to market risk profile is in line with the guidelines established by the governance process,
with limits monitored independently on a timely basis.

All transactions exposing the Organization to market risk are mapped, measured and classified by
probability and importance, and the whole process is approved by the corporate governance
structure.

The process of market risk management is performed corporately. This process involves several
areas, with specific assignments, ensuring an efficient structure, with the measurement and control
of market risk being performed centrally and independently. The management process, approved by
the Board of Directors, is reviewed at least annually by the Committees and by the Board of Directors.

In line with the Corporate Governance practices, aiming to preserve and strengthen the management
of market and liquidity risks in the Organization, and to meet the provisions of CMN Resolution
n
o
3464/07, the Board of Directors approved the Market and Liquidity Risk Management Policy,
whose review is performed at least annually by the competent Committees and by the Board of
Directors, providing the main guidelines for acceptance, control and management of market and
liquidity risks. In addition to this policy, the Organization has specific rules to regulate the market and
liquidity risk management process.


Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

190 Report on Economic and Financial Analysis – June 2014
Below is the statement of financial position by currency

R$ thousand
2014 2013
June 30 March 31 June 30
Balance Local
Foreign
(1) (2)
Foreign
(1) (2)
Assets
Current and long-term assets 915,986,019 857,029,049 58,956,970 66,944,724 57,184,476
Funds available 11,534,602 7,650,991 3,883,611 4,860,251 4,561,643
Interbank investments 137,653,675 135,434,395 2,219,280 2,434,958 1,418,992
Securities and derivative financial instruments 333,200,398 319,426,132 13,774,266 14,396,296 12,205,657
Interbank and interdepartmental accounts 56,115,573 56,115,573 - - -
Loan and leasing 281,651,622 251,485,256 30,166,366 32,877,311 27,994,179
Other receivables and assets 95,830,149 86,916,702 8,913,447 12,375,908 11,004,005
Permanent assets 15,145,755 15,110,010 35,745 39,327 41,965
Investments 1,886,747 1,886,431 316 325 352
Premises and equipment and leased assets 4,578,907 4,566,953 11,954 13,326 15,249
Intangible assets 8,680,101 8,656,626 23,475 25,676 26,364
Total 931,131,774 872,139,059 58,992,715 66,984,051 57,226,441


Liabilities
Current and long-term liabilities 853,621,889 786,425,636 67,196,253 76,330,450 66,777,698
Deposits 213,270,533 186,773,373 26,497,160 27,819,114 23,878,471
Federal funds purchased and securities sold
under agreements to repurchase 255,610,988 252,937,829 2,673,159 889,497 4,394,514
Funds from issuance of securities 69,876,741 61,808,641 8,068,100 10,395,128 12,120,585
Interbank and interdepartmental accounts 5,673,313 3,391,316 2,281,997 2,356,701 1,704,398
Borrowing and onlending 54,141,316 40,033,977 14,107,339 16,029,860 11,469,912
Derivative financial instruments 4,726,565 2,613,717 2,112,848 1,993,977 242,161
Technical reserve for insurance, pension plans
and capitalization bonds 142,732,389 142,731,646 743 848 1,132
Other liabilities:

- Subordinated debts 35,383,996 27,658,295 7,725,701 8,545,513 9,548,408
- Other 72,206,048 68,476,842 3,729,206 8,299,812 3,418,117
Deferred income 223,400 223,400 - - -
Non-controlling interests in subsidiaries 486,207 486,207 - - -
Shareholders’ equity 76,800,278 76,800,278 - - -
Total 931,131,774 863,935,521 67,196,253 76,330,450 66,777,698

Net position of assets and liabilities (8,203,538) (9,346,399) (9,551,257)
Net position of derivatives (2) (15,330,561) (11,380,712) (9,525,820)
Other net off-balance-sheet accounts (3) (442,498) (658,411) 85,572
Net exchange position (liability) (23,976,597) (21,385,522) (18,991,505)

(1) Amounts originally recorded and/or indexed mainly in USD;
(2) Excluding operations maturing in D+1, to be settled at the rate on the last day of the month; and
(3) Other commitments recorded in off-balance-sheet accounts.

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 191
VaR Internal Model - Trading Portfolio

Below is the 1-day VaR:

Risk factors
R$ thousand
2014 2013
June 30 March 31 June 30
Fixed rates 5,879 9,529 202,022
Exchange coupon 4,790 5,526 13,752
Foreign currency 2,743 8,866 573
IGP-M/IPCA 22,615 31,671 97,424
Equities 5,751 273 6,425
Sovereign/Eurobonds and Treasuries 5,134 5,910 16,668
Other 881 3,746 1,009
Correlation/diversification effect (22,819) (29,109) (176,290)
VaR (Value at Risk) 24,974 36,412 161,583
Amounts net of tax.

Sensitivity analysis

The Trading Portfolio is also monitored daily by sensitivity analyses that measure the effect of
movements of market and price curves on our positions. Furthermore, a sensitivity analysis of the
Organization’s financial exposures (Trading and Banking Portfolio) is performed on a quarterly basis,
in compliance with CVM Rule n
o
475/08.

Note that the impact of the financial exposure on the Banking Portfolio (notably interest rates and price
indexes) do not necessarily represent a potential accounting loss for the Organization because a
portion of loans held in the Banking Portfolio are financed by demand and/or savings deposits, which
are “natural hedges” for future variations in interest rates, moreover, interest rate variations do not
represent a material impact on the Institution’s result, as Loans are held to maturity. Also, due to our
strong presence in the insurance and pension plan market, most of the assets are adjusted for price
indexes, linked to the corresponding technical reserves.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

192 Report on Economic and Financial Analysis – June 2014
Sensitivity Analysis - Trading and Banking Portfolios


R$ thousand
Trading and Banking portfolios (1)
2014 2013
June 30 March 31 June 30
Scenarios Scenarios Scenarios
1 2 3 1 2 3 1 2 3
Interest rate in
Reais
Exposure subject to variations in fixed
interest rates and interest rate
coupons (3,698) (1,009,481) (1,943,751) (6,295) (1,743,384) (3,340,753) (12,145) (3,485,901) (6,717,621)
Price indexes
Exposure subject to variations in price
index coupon rates (13,245) (1,777,223) (3,299,495) (15,190) (2,205,392) (4,059,293) (19,747) (2,364,773) (4,371,129)
Exchange coupon
Exposure subject to variations in
foreign currency coupon rates (395) (37,343) (69,713) (379) (43,523) (80,664) (818) (92,321) (172,375)
Foreign currency
Exposure subject to exchange
variations (1,712) (167,240) (408,169) (2,325) (63,173) (164,705) (7,138) (165,505) (311,594)
Equities
Exposure subject to variation in stock
prices (21,012) (525,295) (1,050,590) (21,908) (547,706) (1,095,413) (20,290) (506,537) (1,012,880)
Sovereign/Eurobon
ds and Treasuries
Exposure subject to variations in the
interest rate of securities traded on the
international market (661) (38,806) (74,792) (663) (39,807) (77,128) (1,243) (72,262) (140,443)
Other
Exposure not classified in previous
definitions (381) (9,544) (19,087) (235) (5,954) (11,908) (164) (4,152) (8,305)
Total excluding correlation of risk factors
(41,104) (3,564,932) (6,865,597) (46,995) (4,648,939) (8,829,864) (61,545) (6,691,451) (12,734,347)
Total including correlation of risk factors
(29,342) (2,660,398) (4,944,728) (33,055) (3,785,764) (7,092,958) (41,020) (5,625,938) (10,706,105)

(1) Amounts net of tax.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

Bradesco 193
The sensitivity analysis of the Trading Portfolio, which represents exposures that may have a material impact on the Organization’s results, is presented below. Note
that results show the impact for each scenario on a static portfolio position. The market dynamism results in continuous changes in these positions and does not
necessarily reflect the current position. Moreover, as previously mentioned, the Organization has an ongoing process of market risk management, which constantly
looks for market dynamism to mitigate related risks according to the strategy determined by Senior Management. Therefore, in cases of deterioration indicators in a
certain position, proactive measures are taken to minimize any potential negative impact, aimed at maximizing the risk/return ratio for the Organization.
Sensitivity Analysis - Trading Portfolio


R$ thousand
Trading portfolio (1)
2014 2013
June 30 March 31 June 30
Scenarios Scenarios Scenarios
1 2 3 1 2 3 1 2 3
Interest rate in
Reais
Exposure subject to variations in fixed
interest rates and interest rate coupons (314) (82,919) (163,197) (634) (173,364) (340,458) (5,111) (1,244,357) (2,426,654)
Price indexes
Exposure subject to variations in price
index coupon rates (1,030) (130,639) (258,641) (1,144) (160,778) (313,408) (2,856) (331,650) (590,663)
Exchange coupon
Exposure subject to variations in
foreign currency coupon rates (353) (39,698) (73,662) (379) (43,063) (79,904) (784) (90,108) (167,965)
Foreign currency
Exposure subject to exchange
variations (1,574) (52,945) (107,641) (2,256) (56,412) (112,824) (823) (22,802) (45,875)
Equities
Exposure subject to variation in stock
prices (1,991) (49,773) (99,545) (946) (23,645) (47,290) (1,894) (46,631) (93,068)
Sovereign/Eurobon
ds and Treasuries
Exposure subject to variations in the
interest rate of securities traded on the
international market (489) (34,633) (66,675) (455) (33,506) (64,449) (954) (56,064) (108,720)
Other
Exposure not classified in previous
definitions (345) (8,630) (17,260) (99) (2,614) (5,229) (197) (4,967) (9,934)
Total excluding correlation of risk factors
(6,096) (399,237) (786,621) (5,913) (493,382) (963,562) (12,619) (1,796,579) (3,442,879)
Total including correlation of risk factors
(2,912) (184,289) (363,027) (2,750) (280,144) (551,645) (4,187) (1,113,743) (2,180,501)

(1) Amounts net of tax.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

194 Report on Economic and Financial Analysis – June 2014
Sensitivity analyses were carried out based on scenarios prepared for the respective dates, always
considering market data at the time and scenarios that would adversely affect our positions, according
to the examples below:

Scenario 1: Based on market information (BM&FBOVESPA, Anbima, etc.), stresses were applied for
1 basis point on the interest rate and 1% variation on prices. For example: for a Real/US
dollar exchange rate of R$ 2.20 a scenario of R$ 2.22 was used, while for a fixed interest
rate of 1 year of 10.92% a 10.93% scenario was applied;

Scenario 2: 25% stresses were determined based on market information. For example: for a Real/US
dollar exchange rate of R$ 2.20 a scenario of R$ 2.75 was used, while for a fixed interest
rate of 1 year of 10.92% a 13.65% scenario was applied; The scenarios for other risk
factors also accounted for 25% stresses in the respective curves or prices; and

Scenario 3: 50% stresses were determined based on market information. For example: for a Real/US
dollar exchange rate of R$ 2.20 a scenario of R$ 3.30 was used, while for a fixed interest
rate of 1 year of 10.92% a 16.38% scenario was applied; The scenarios for other risk
factors also account for 50% stresses in the respective curves or prices.

Liquidity Risk

Liquidity Risk is represented by the possibility of the institution not being able to efficiently meet its
obligations, without affecting its daily operations and incurring significant losses, as well as the
possibility of the institution not being able to trade a position at market price due to its high amount
when compared to the usually traded volume or due to some market discontinuation.

It is crucial to know and monitor this risk, especially so that the Organization can settle the operations
in a timely and reliable way.

The process of liquidity risk management is performed corporately. It involves several areas with
specific assignments, ensuring an efficient structure. Liquidity risk is measured and control centrally
and independently, contemplating the daily monitoring of the composition of available resources,
compliance with the minimum liquidity level, and the contingency plan for stress situations.

One of the objectives of the Organization’s Policy on Market and Liquidity Risk Management, approved
by the Board of Directors, is to lay down the rules, criteria and procedures that guarantee the
establishment of the Minimum Liquidity Reserve (RML) for the Organization, as well as the strategy
and action plans for liquidity crisis situations.

As part of the criteria and procedures approved, the Organization also establishes a minimum liquidity
reserve to be recorded daily and the types of assets eligible for making up the resources available.
Moreover, instruments for managing liquidity in a normal scenario and in a crisis scenario and the
strategies to be implemented in each case are established.




Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements


Bradesco 195
The statement of financial position by maturity is as follows



R$ thousand
1 to 30
days
31 to 180
days
181 to 360
days
More than
360 days
Maturity not stated Total
Assets
Current and long-term assets 502,863,798 90,277,449 57,239,815 265,604,957 - 915,986,019
Funds available 11,534,602 - - - - 11,534,602
Interbank investments (2) 127,072,820 5,266,371 4,644,663 669,821 - 137,653,675
Securities and derivative financial instruments (1) (2) 240,462,423 4,913,189 3,836,408 83,988,378 - 333,200,398
Interbank and interdepartmental accounts 55,515,772 - - 599,801 - 56,115,573
Loan and leasing 28,002,099 65,826,668 40,490,396 147,332,459 - 281,651,622
Other receivables and assets 40,276,082 14,271,221 8,268,348 33,014,498 - 95,830,149
Permanent assets 441,252 1,143,695 1,359,138 9,253,698 2,947,972 15,145,755
Investments - - - - 1,886,747 1,886,747
Premises and equipment 274,134 300,962 361,154 3,236,944 405,713 4,578,907
Intangible assets 167,118 842,733 997,984 6,016,754 655,512 8,680,101
Total on June 30, 2014 503,305,050 91,421,144 58,598,953 274,858,655 2,947,972 931,131,774
Total on March 31, 2014 514,604,797 89,612,495 60,157,066 254,916,051 2,938,344 922,228,753
Total on June 30, 2013 510,475,106 92,994,775 49,731,536 240,510,163 2,985,788 896,697,368

Liabilities
Current and long-term liabilities 501,881,687 80,448,391 63,496,651 207,795,160 - 853,621,889
Deposits (3) 135,601,762 20,196,629 9,033,296 48,438,846 - 213,270,533
Federal funds purchased and securities sold under agreements to repurchase (2) 188,569,763 32,914,874 10,722,807 23,403,544 - 255,610,988
Funds from issuance of securities 1,098,528 7,646,273 28,153,388 32,978,552 - 69,876,741
Interbank and interdepartmental accounts 5,673,313 - - - - 5,673,313
Borrowing and onlending 3,791,160 11,375,311 9,776,642 29,198,203 - 54,141,316
Derivative financial instruments 3,545,526 249,043 190,944 741,052 - 4,726,565
Technical reserves for insurance, pension plans and capitalization bonds (3) 113,644,207 3,804,284 1,620,227 23,663,671 - 142,732,389
Other liabilities:
- Subordinated debts 140,594 1,789,719 719,059 32,734,624 - 35,383,996
- Other 49,816,834 2,472,258 3,280,288 16,636,668 - 72,206,048
Deferred income 223,400 - - - - 223,400
Non-controlling interests in subsidiaries - - - - 486,207 486,207
Shareholders’ equity - - - - 76,800,278 76,800,278
Total on June 30, 2014 502,105,087 80,448,391 63,496,651 207,795,160 77,286,485 931,131,774
Total on March 31, 2014 502,681,642 79,077,399 51,859,821 214,734,626 73,875,265 922,228,753
Total on June 30, 2013 483,729,359 79,065,257 48,069,532 219,223,705 66,609,515 896,697,368

Net assets accumulated on June 30, 2014 1,199,963 12,172,716 7,275,018 74,338,513 - -
Net assets on March 31, 2014 YTD 11,923,155 22,458,251 30,755,496 70,936,921 - -
Net assets accumulated on June 30, 2013 26,745,747 40,675,265 42,337,269 63,623,727 - -

(1) Investments in investment funds are classified as 1 to 30 days;
(2) Repurchase agreements are classified according to the maturity of the transactions; and
(3) Demand and savings deposits and technical reserves for insurance, pension plans and capitalization bonds comprising “VGBL” and “PGBL” products are classified as 1 to 30 days, without considering average historical turnover.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

196 Report on Economic and Financial Analysis – June 2014
Operational Risk
Operational risk is represented by the possibility of losses resulting from failure, deficiency or inadequacy of
internal processes, people and systems, or from external events. This definition includes legal risk associated
with the activities undertaken by the Organization.

The process of operational risk management is performed corporately. This process involves several areas,
with specific assignments, ensuring an efficient structure, with the measurement and control of operational risk
being performed centrally and independently.

Among the plans to mitigate operational risk, we highlight that the most important is business continuity
management, which consists of formal plans to be adopted during moments of crisis to guarantee the recovery
and continuation of business as well as preventing loss.

Internal Controls

The existence, effectiveness and implementation of controls that ensure acceptable risk levels in the
Organization's processes are certified, and the results are reported to the Audit Committee and to the
Compliance and Internal Controls Committee, as well as to the Board of Directors, aiming to provide assurance
regarding the proper conduct of business and the achievement of the established goals, in accordance with
applicable external laws and regulations, policies, internal rules and procedures, codes of conduct and self -
regulation.

The effectiveness of the Organization’s internal controls is supported by trained professionals, well-defined
and implemented processes, and technology compatible with the business needs.

The Compliance and Internal Controls Policy and the Internal Control System Standards are aligned with the
main control frameworks, such as COSO - Committee of Sponsoring Organizations of the Treadway
Commission and COBIT - Control Objectives for Information and Related Technology, which cover aspects
related to Business and Information Technology, respectively.


Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements


Bradesco 197
Below is the Capital Adequacy Ratio:

Calculation basis - Capital Adequacy Ratio
R$ thousand
Capital Adequacy Ratio
(Basel III)
Capital Adequacy Ratio
(Basel II)
2014 2013
June 30 March 31 June 30
Financial (1) Financial
Economic-
financial
Tier I capital 71,892,297 69,934,147 69,701,868 69,997,576
Common equity 71,892,297 69,934,147 69,701,868 69,997,576
Shareholders’ equity 76,800,278 73,325,996 66,027,513 66,027,513
Non-controlling interests - 203,858 189,226 582,002
Prudential adjustments - CMN Resolution n
o
4192/13 (2) (4,907,981) (3,595,707) - -
Reduction of deferred assets - CMN Resolution n
o
3444/07 (2) - - (108,124) (205,192)
Decrease in gains/losses of market value adjustments in available for sale and derivatives - CMN Resolution n
o
3444/07 (2) - - 3,593,253 3,593,253
Tier II capital 22,197,834 22,300,588 22,761,290 22,761,290
Total gains/losses of adjustments to market value in available for sale and derivatives - CMN Resolution n
o
3444/07 (2) - - (3,593,253) (3,593,253)
Subordinated debt (3) 22,197,834 22,300,588 26,354,543 26,354,543
Deduction of instruments for funding - CMN Resolution n
o
3444/07 (2) - - (129,858) (129,858)
Capital (a) 94,090,131 92,234,735 92,333,300 92,629,008

- Credit risk 548,599,472 534,884,413 485,781,227 479,216,708
- Market risk 18,004,347 21,253,243 93,830,536 93,830,535
- Operational risk 29,852,953 29,852,953 21,792,201 30,493,534
Risk-weighted assets – RWA (b) (4) 596,456,772 585,990,609 601,403,964 603,540,777

Capital adequacy ratio (a/b) 15.8% 15.7% 15.4% 15.4%
Tier I capital 12.1% 11.9% 11.6% 11.6%
- Principal capital 12.1% 11.9% 11.6% 11.6%
Tier II capital 3.7% 3.8% 3.8% 3.8%

(1) As of October 2013, capital is calculated as per CMN Resolution n
o
4192/13, which establishes that calculation is based on the “Financial Consolidated”;
(2) Criteria used as of October 2013, pursuant to CMN Resolution n
o
4192/13;
(3) Until. September 2013, the amounts were calculated pursuant to CMN Resolution n
o
3444/07 and, as of October 2013, the amounts are calculated pursuant to CMN Resolution n
o
4192/13; and
(4) For comparison purposes, we adjusted the “Allocation of minimum required capital” from prior periods, given that we now report the portions relating to “Risk weighted asset – RWA”.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

198 Report on Economic and Financial Analysis – June 2014
b) Fair value
The book value, net of loss provisions on the main financial instruments is shown below:
Portfolio
R$ thousand
Unrealized gain/(loss) without tax effects
Book value Fair value In income statement In shareholders’ equity
2014 2014 2013 2014 2013
June 30 June 30 March 31 June 30 June 30 March 31 June 30
Securities and derivative financial instruments (Notes 3e, 3f and 8) 333,200,398 335,390,717 2,214,235 (259,166) (1,334,762) 2,190,319 1,184,811 1,834,739
- Adjustment of available-for-sale securities (Note 8cII) 23,916 (1,443,977) (3,169,501) - - -
- Adjustment of held-to-maturity securities (Note 8d item 7) 2,190,319 1,184,811 1,834,739 2,190,319 1,184,811 1,834,739
Loan and leasing (Notes 2, 3g and 10) (1) 328,667,945 327,438,988 (1,228,957) (1,298,667) 879,219 (1,228,957) (1,298,667) 879,219
Investments (Notes 3j and 13) (2) 1,886,747 22,898,164 21,011,417 16,702,955 13,200,924 21,011,417 16,702,955 13,200,924
Treasury shares (Note 23d) 298,015 381,416 - - - 83,401 79,645 43,039
Time deposits (Notes 3n and 16a) 92,254,346 91,899,582 354,764 375,778 297,383 354,764 375,778 297,383
Funds from issuance of securities (Note 16c) 69,876,741 70,153,219 (276,478) (175,531) (175,277) (276,478) (175,531) (175,277)
Borrowing and onlending (Notes 17a and 17b) 54,141,316 54,248,972 (107,656) (124,054) (170,112) (107,656) (124,054) (170,112)
Subordinated debts (Note 19) 35,383,996 35,678,427 (294,431) (243,200) (691,144) (294,431) (243,200) (691,144)
Unrealized gains excluding tax 21,672,894 14,978,115 12,006,231 21,732,379 16,501,737 15,218,771

(1) Includes advances on foreign exchange contracts, leases and other receivables with lending characteristics; and
(2) Primarily includes the surplus of interest in subsidiaries and affiliates (Cielo, Odontoprev and Fleury) and other investments (BM&FBOVESPA).

Determination of the fair value of financial instruments:
? Securities and derivative financial instruments, investments, subordinated debts and treasury shares are based on the market price at the reporting date. If no
quoted market price is available, estimate amounts are based on the dealer quotations, pricing models, quotation models or quotations for instruments with
similar characteristics;
? Fixed rate loans were determined by discounting estimated cash flows, using interest rates applied by the Bradesco Organization for new contracts with similar
features. These rates are consistent with the market at the reporting date; and
? Time deposits, funds from issuance of securities, borrowing and on lending were calculated by discounting the difference between the cash flows under the
contract terms and our prevailing market rates for the same product at the reporting date.
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements


Bradesco 199
c) Capital Management
The Capital Management structure aims at providing conditions to monitor and control capital,
contributing to the achievement of Organization’s strategic goals and objectives. The following are
considered: business environment, prospective and consistent vision with capital adequacy planning.
This structure is composed of the Statutory, Non-Statutory and Executive Committees that assist the
Board of Directors and the Board of Executive Officers in decision making.

The process of assessing Capital adequacy is carried out so as to ensure that the Organization has
a solid Reference Equity base to support the development of activities and cope with risks, whether
in normal or in extreme market conditions, as well as meeting managerial and regulatory
requirements in capital management.

33) EMPLOYEE BENEFITS
Bradesco and its subsidiaries sponsor an unrestricted benefit pension plan (PGBL) for employees and
directors. PGBL is a private defined contribution pension plan that allows financial resources to be
accumulated by participants throughout their careers by means of employee and employer contributions
and invested in an Exclusive Investment Fund (FIE).

PGBL is managed by Bradesco Vida e Previdência S.A. and BRAM - Bradesco Asset Management S.A.
The Securities Dealer Company (DTVM) is responsible for the financial management of FIE funds.

Contributions made by employees and directors of Bradesco and its subsidiaries are for the equivalent of
at least 4% of their salary, except for participants who chose to migrate from the defined benefit plan to a
defined contribution plan (PGBL) in 2001, whose contributions to the PGBL were maintained at the levels
that prevailed for the defined benefit plan when they migrated, always respecting the 4% minimum.

Actuarial obligations of the defined contribution plan (PGBL) are fully covered by the plan assets of the
corresponding FIE.

In addition to the aforementioned plan (PGBL), participants who chose to migrate from the defined benefit
plan are guaranteed a proportional deferred benefit, corresponding to their accumulated rights in the plan.
For participants of the defined benefit plan, whether they migrated to the PGBL plan or not, for retirees
and pensioners, the present value of the actuarial plan obligation is fully covered by the plan assets.

Banco Alvorada S.A. (successor from the spin-off of Banco Baneb S.A.) maintains defined contribution
and defined benefit retirement plans, through Fundação Baneb de Seguridade Social - Bases (related to
the former employees of Baneb).

Banco Bradesco BBI S.A. (formally Banco BEM S.A.) sponsors both defined benefit and defined
contribution retirement plans, through Caixa de Assistência e Aposentadoria dos Funcionários do Banco
do Estado do Maranhão (Capof).

Banco Bradesco BERJ S.A has incorporated Alvorada Cartões, Crédito, Financiamento e Investimento
S.A. (Alvorada CCFI) (merging company of Banco BEC S.A.), which sponsors a defined benefit plan
through Caixa de Previdência Privada do Banco do Estado do Ceará (Cabec).

The assets of pension plans are invested in compliance with the applicable legislation (government
securities and private securities, listed company shares and real estate properties).

In accordance with CPC 33 (R1) – Employee Benefit, as approved by CVM Resolution n
o
600/09,
Bradesco and its subsidiaries, as sponsors of these plans, taking into consideration the economic and
actuarial study, calculated their actuarial commitments using a real interest rate and recognizing their
obligations in the financial statements.

The assets of pension plans are invested in compliance with the applicable legislation (government
securities and private securities, listed company shares and real estate properties).

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

200 Report on Economic and Financial Analysis – June 2014
Expenses relating to contributions made in the 1
st
semester of 2014 totaled R$ 310,630 thousand
(R$ 307,900 thousand in the 1
st
semester of 2013) and R$ 152,160 thousand in the 2
nd
quarter of 2014
(R$ 158,470 thousand in the 1
st
quarter of 2014)

In addition to this benefit, Bradesco and its subsidiaries offer other benefits to their employees and
administrators, including: health insurance, dental care, life and personal accident insurance, and
professional training. These expenses, including the aforementioned contributions, totaled R$ 1,455,022
thousand in the 1
st
semester of 2014 (R$ 1,350,482 thousand in the 1
st
semester of 2013) and R$ 740,336
thousand in the 2
nd
quarter of 2014 (R$ 714,686 thousand 1
st
quarter of 2014).

34) INCOME TAX AND SOCIAL CONTRIBUTION

a) Calculation of income tax and social contribution charges


R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Income before income tax and social contribution 6,503,417 5,908,365 12,411,782 7,737,451
Total income tax and social contribution at rates of 25% and
15%, respectively (1) (2,601,367) (2,363,346) (4,964,713) (3,094,980)
Effect on the tax calculation:
Equity in the earnings (losses) of unconsolidated companies 13,946 20,705 34,651 6,088
Net non-deductible expenses of nontaxable income (33,626) (34,083) (67,709) (213,967)
Interest on shareholders’ equity (paid and payable) 271,502 355,257 626,759 637,219
Other amounts (2) (346,837) (413,921) (760,758) 852,550
Income tax and social contribution for the period (2,696,382) (2,435,388) (5,131,770) (1,813,090)

(1) The social contribution rate for companies of the financial and insurance sectors was increased to 15%, according to Law n
o
11727/08,
remaining at 9% for other companies (Note 3h); and
(2) Primarily includes the exchange variation on investments made abroad and bringing the effective social contribution rate to the (40%)
rate.

b) Breakdown of income tax and social contribution in the income statement


R$ thousand
2014 2013
2
nd
quarter 1
st
quarter 1
st
semester 1
st
semester
Current taxes:
Income tax and social contribution payable (3,875,494) (2,265,576) (6,141,070) (5,518,291)
Deferred taxes:
Amount recorded/realized in the period on temporary additions 1,833,583 145,778 1,979,361 4,006,097
Use of opening balances of:
Social contribution loss (246,306) (139,862) (386,168) (232,498)
Income tax loss (426,315) (239,798) (666,113) (142,018)
Recording in the period on:
Social contribution loss 5,864 18,887 24,751 41,245
Income tax loss 12,286 45,183 57,469 32,375
Total deferred taxes 1,179,112 (169,812) 1,009,300 3,705,201
Income tax and social contribution for the period (2,696,382) (2,435,388) (5,131,770) (1,813,090)

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report


Notes to the Consolidated Financial Statements


Bradesco 201
c) Deferred income tax and social contribution

R$ thousand

Balance on
12.31.2013
Amount
recorded
Amount
realized
Balance on
6.30.2014
Balance on
3.31.2014
Balance on
6.30.2013
Allowance for loan losses 15,348,782 3,354,789 1,789,312 16,914,259 15,782,322 14,271,269
Civil provisions 1,517,934 282,814 270,565 1,530,183 1,511,062 1,496,226
Tax provisions 2,299,080 201,673 12,612 2,488,141 2,397,131 5,451,214
Labor provisions 999,063 278,192 303,346 973,909 995,908 975,415
Provision for devaluation of securities and investments 533,645 13,657 90,228 457,074 459,747 411,367
Provision for devaluation of foreclosed assets 221,934 97,862 63,721 256,075 237,826 203,555
Adjustment to fair value of trading securities 183,169 4,759 181,704 6,224 15,908 30,481
Amortization of goodwill 777,244 15,457 497,920 294,781 303,239 328,018
Provision for interest on shareholders’ equity (1) - 427,803 - 427,803 255,772 127,152
Other 2,096,941 984,111 472,348 2,608,704 2,164,655 2,966,951
Total deductible taxes on temporary differences 23,977,792 5,661,117 3,681,756 25,957,153 24,123,570 26,261,648
Income tax and social contribution losses in Brazil and abroad 4,045,282 82,220 1,052,281 3,075,221 3,729,692 1,396,191
Subtotal (2) 28,023,074 5,743,337 4,734,037 29,032,374 27,853,262 27,657,839
Adjustment to fair value of available-for-sale securities (2) 1,241,130 266,325 744,676 762,779 1,220,225 2,015,842
Social contribution - Provisional Measure n
o
2158-35/01 140,197 - - 140,197 140,197 140,842
Total deferred tax assets (Note 11b) 29,404,401 6,009,662 5,478,713 29,935,350 29,213,684 29,814,523
Deferred tax liabilities (Note 34f) 3,187,945 1,054,847 693,007 3,549,785 3,324,071 4,255,124
Deferred tax assets, net of deferred tax liabilities 26,216,456 4,954,815 4,785,706 26,385,565 25,889,613 25,559,399
- Percentage of net deferred tax assets on capital (Note 32a) 27.4% 28.0% 28.1% 27.6%
- Percentage of net deferred tax assets over total assets 2.9% 2.8% 2.8% 2.9%

(1) Deferred taxes on interest on shareholders’ equity is recorded up to the authorized tax limit; and
(2) Deferred tax assets from companies in the financial and insurance sectors were established considering the increase in the social contribution rate, determined by Law n
o
11727/08 (Note 3h).



Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

202 Report on Economic and Financial Analysis – June 2014
d) Expected realization of deferred tax assets on temporary differences, tax loss and negative basis
of social contribution and deferred social contribution - Provisional Measure n
o
2158-35

R$ thousand
Temporary differences
Income tax and social
contribution losses
Social
contribution -
Provisional
Measure
n
o
2158-35
Total
Income tax
Social
contribution
Income tax
Social
contribution
2014 4,838,055 2,885,701 166,079 105,022 33,578 8,028,435
2015 6,747,957 4,019,939 151,770 198,353 522 11,118,541
2016 3,009,646 1,691,135 540,871 321,815 106,097 5,669,564
2017 532,355 303,755 722,294 517,877 - 2,076,281
2018 1,230,963 627,215 17,262 333,833 - 2,209,273
2019 (1
st
Sem.) 45,431 25,001 31 14 - 70,477
Total 16,404,407 9,552,746 1,598,307 1,476,914 140,197 29,172,571

The projected realization of deferred tax assets is an estimate and it is not directly related to the expected
accounting income.
The present value of deferred tax assets, calculated based on the average rate of tax effects net inflow,
amounts to R$ 27,790,271 thousand (R$ 26,463,506 thousand on March 31, 2014 and R$ 26,429,024
thousand on June 30, 2013), of which R$ 24,829,951 thousand (R$ 22,918,033 thousand on March 31,
2014 and R$ 24,973,521 thousand on June 30, 2013) refers to temporary differences, R$ 2,827,939
thousand (R$ 3,414,250 thousand on March 31, 2014 and R$ 1,317,754 thousand on June 30, 2013)
to tax losses and negative basis of social contribution and R$ 132,381 thousand (R$ 131,223 thousand
on March 31, 2014 and R$ 137,749 thousand on June 30, 2013) of deferred social contribution,
Provisional Measure n
o
2158-35.

e) Unrecognized deferred tax assets
On June 30, 2014, deferred tax assets of R$ 2,077 thousand (R$ 2,077 thousand on March 31, 2014
and R$ 464,284 thousand on June 30, 2013) were not recorded, but they will be when they meet the
regulatory demands and/or present prospects of realization according to studies and analyses prepared
by the Management and in accordance with Bacen regulations.

f) Deferred tax liabilities



R$ thousand
2014 2013
June 30 March 31 June 30
Mark-to-market adjustment to securities and derivative financial
instruments 950,054 733,737 757,879
Difference in depreciation 1,007,958 1,162,771 1,823,987
Judicial deposit and others 1,591,773 1,427,563 1,673,258
Total 3,549,785 3,324,071 4,255,124

The deferred tax liabilities of companies in the financial and insurance sectors were established
considering the increased social contribution rate, established by Law n
o
11727/08 (Note 3h).

35) OTHER INFORMATION

a) The Bradesco Organization manages investment funds and portfolios with net assets of
R$ 462,245,913 thousand on June 30, 2014 (R$ 439,175,700 thousand on March 31, 2014 and
R$ 427,237,752 thousand on June 30, 2013).
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements


Bradesco 203
b) Consortium funds


R$ thousand
2014 2013
June 30 March 31 June 30
Monthly estimate of funds receivable from consortium members 402,392 383,836
326,415
Contributions payable by the group 19,709,344 18,635,721
16,119,602
Consortium members - assets to be included 17,719,131 16,714,437
14,388,684
Credits available to consortium members 4,069,890 3,950,264
3,565,510


In units
2014 2013
June 30 March 31 June 30
Number of groups managed 3,419 3,326
3,054
Number of active consortium members 1,010,214 957,771
821,004
Number of assets to be included 488,050 461,854
407,524

c) In 2014, the procedures implemented on the reserve requirement on exchange short position, time
deposits and demand deposits are as follows:

Description Procedures
Reserve requirement on exchange
short position
The reserve requirement for financial institutions is calculated applying the rate of
0% on amount exceeding US$ 3 billion.
Reserve requirement on time deposits
Bacen remunerates balance, limited to the lower among the following amounts:
I – the requirement discounted from deductions forecasted by Bacen. Such
deductions may not exceed 50% of the liabilities; and
II – the requirement multiplied by the percentage of:
- 82% as of the calculation period started on 1.13.2014;
- 100% as of the calculation period started on 3.17.2014;
- 50% as of the calculation period started on 8.4.2014; and
- 100% as of the calculation period started on 8.10.2015.
Reserve requirement on time deposits
I – the rate relative to the calculation periods started on 6.2.2014 (Group A
Institutions) and 6.9.2014 (Group B Institutions) was 44%; and
II – from these dates the rate increased from 44% to 45% on the calculation basis.

d) As part of the convergence process with international accounting standards, the Brazilian Accounting
Pronouncements Committee (CPC) issued several accounting pronouncements, as well as their
interpretations and guidelines, which are applicable to financial institutions only after approval by CMN.

The accounting standards which have been approved by CMN include the following:

? Resolution n
o
3566/08 – Impairment of Assets (CPC 01);

? Resolution n
o
3604/08 – Statement of Cash Flows (CPC 03);

? Resolution n
o
3750/09 – Related Party Disclosures (CPC 05);

? Resolution n
o
3823/09 – Provisions, Contingent Liabilities and Contingent Assets (CPC 25);

? Resolution n
o
3973/11 – Subsequent Event (CPC 24);

? Resolution n
o
3989/11 – Share-based Payment (CPC 10);

? Resolution n
o
4007/11 - Accounting Policies, Changes in Estimates and Error Correction (CPC 23);
and

? Resolution n
o
4144/12 - Basic Conceptual Pronouncement (R1).
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Notes to the Consolidated Financial Statements

204 Report on Economic and Financial Analysis – June 2014

Presently, it is not possible to estimate when the CMN will approve the other CPC pronouncements or
if they will be used prospectively or retrospectively.
CMN Resolution n
o
3786/09 and Bacen Circular Letters n
o
3472/09and n
o
3516/10 establish that
financial institutions and other entities authorized by Bacen to operate, which are publicly-held
companies or which are required to establish an Audit Committee shall, since December 31, 2010,
annually prepare and publish in up to 90 days from the reference date December 31 their consolidated
financial statements, prepared under the International Financial Reporting Standards (IFRS), in
compliance with international standards issued by the International Accounting Standards Board
(IASB).

As required by CMN Resolution, on March 31, 2014, Bradesco published its consolidated financial
statements for December 31, 2013 and 2012 on its website, in accordance with IFRS standards. The
net income and equity of the financial statements disclosed in IFRS have not been substantially
different from those presented in the financial statements, in accordance with the accounting practices
adopted in Brazil and applicable to institutions authorized to operate by the Brazilian Central Bank
(Bacen). As there were no substantial differences between the two sets of financial statements
(GAAPs) in the financial year ended on December 31, 2013, the Management believes that the net
profit and net equity, during the semester ended on June 30, 2014, are not materially different in the
two GAAPs, regarding their nature or values.

e) On May 14, 2014, Law n
o
12973/14 was published, which converted Provisional Measure n
o
627. This
Law amends the Federal Tax Legislation regarding Corporate Income Tax - IRPJ, the Social
Contribution on Net Profits - CSLL, the Contribution to PIS/PASEP and the Contribution to the Social
Security Financing - COFINS. We highlight the main issues that Law n
o
12973/14 provides:

? revocation of the Transition Tax System (RTT), controlling the adjustments arising from new
accounting methods and criteria for the compliance of the Brazilian accounting rules to the
international standards;

? taxation of companies domiciled in Brazil, for acquisition of equity resulting from profit sharing
recorded abroad by subsidiaries and unconsolidated companies; and

? special installment payment of PIS/PASEP and COFINS Contributions.

This Law will still be regulated. However, in our assessment, there will be significant future impact on
our Consolidated Financial Statements.

f) On July 28, 2014 a strategic partnership was entered into with IBM Brasil - Indústria Máquinas e
Serviços Ltda. (IBM), where it was agreed that the hardware and software support and maintenance
activities currently provided to Bradesco by Scopus Tecnologia Ltda. (Scopus Serviços), a company
belonging to the Bradesco Organization, will be provided by IBM, which shall apply its experience,
technical knowledge and technological skills. IBM will take over the operational structure from Scopus
Serviços, and all support and maintenance contracts signed between Scopus Serviços and its other
clients. The consulting activities on innovation and information technology solutions currently
developed by Scopus Serviços will be performed by Scopus Soluções em TI S.A., whose capital stock
will continue to be held in full by Bradesco, which will retain ownership of the Scopus brand.

g) There were no other subsequent events that need to be adjusted or disclosed for the consolidated
financial statements as of June 30, 2014.

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Management Bodies


Bradesco 205
Reference Date: July 10, 2014

Board of Directors Department Directors (continued) Ethical Conduct Committee
José Ramos Rocha Neto Milton Matsumoto - Coordinator
Chairman Júlio Alves Marques Carlos Alberto Rodrigues Guilherme
Lázaro de Mello Brandão Laércio Carlos de Araújo Filho Julio de Siqueira Carvalho de Araujo
Layette Lamartine Azevedo Júnior Domingos Figueiredo de Abreu
Vice-Chairman Lúcio Rideki Takahama Marco Antonio Rossi
Luiz Carlos Trabuco Cappi Luiz Carlos Brandão Cavalcanti Junior Alexandre da Silva Glüher
Marcelo Frontini Josué Augusto Pancini
Members Marcelo Santos Dall’Occo André Rodrigues Cano
Antônio Bornia Marcos Aparecido Galende Clayton Camacho
Mário da Silveira Teixeira Júnior Marcos Daré Frederico William Wolf
João Aguiar Alvarez Marlene Morán Millan Glaucimar Peticov
Denise Aguiar Alvarez Marlos Francisco de Souza Araujo José Luiz Rodrigues Bueno
Carlos Alberto Rodrigues Guilherme Nobuo Yamazaki Júlio Alves Marques
Milton Matsumoto Octavio Manoel Rodrigues de Barros Rogério Pedro Câmara
José Alcides Munhoz Paulo Aparecido dos Santos
Paulo Faustino da Costa Integrated Risk Management
Rogério Pedro Câmara and Capital Allocation Committee
Directors Waldemar Ruggiero Júnior Alexandre da Silva Glüher - Coordinator
Executive Officers Walkiria Schirrmeister Marquetti Julio de Siqueira Carvalho de Araujo
Chief Executive Officer Domingos Figueiredo de Abreu
Luiz Carlos Trabuco Cappi Directors Aurélio Conrado Boni
Antonio Chinellato Neto Sérgio Alexandre Figueiredo Clemente
Executive Vice-Presidents Antonio Daissuke Tokuriki Marco Antonio Rossi
Julio de Siqueira Carvalho de Araujo Cláudio Borges Cassemiro Josué Augusto Pancini
Domingos Figueiredo de Abreu Edson Marcelo Moreto Maurício Machado de Minas
Aurélio Conrado Boni João Sabino Alfredo Antônio Lima de Menezes
Sérgio Alexandre Figueiredo Clemente Marcio Henrique Araujo Parizotto Luiz Carlos Angelotti
Marco Antonio Rossi Paulo Manuel Taveira de Oliveira Ferreira Gedson Oliveira Santos
Alexandre da Silva Glüher Roberto de Jesus Paris Marlos Francisco de Souza Araujo
Josué Augusto Pancini
Maurício Machado de Minas Regional Officers Sustainability Committee
Alex Silva Braga Luiz Carlos Angelotti - Coordinator
Managing Directors Almir Rocha Carlos Alberto Rodrigues Guilherme
Alfredo Antônio Lima de Menezes André Ferreira Gomes Milton Matsumoto
André Rodrigues Cano Antonio Gualberto Diniz Julio de Siqueira Carvalho de Araujo
Luiz Carlos Angelotti Antonio Piovesan Domingos Figueiredo de Abreu
Marcelo de Araújo Noronha Carlos Alberto Alástico Aurélio Conrado Boni
Nilton Pelegrino Nogueira Delvair Fidêncio de Lima Marco Antonio Rossi
André Marcelo da Silva Prado Francisco Aquilino Pontes Gadelha Alexandre da Silva Glüher
Luiz Fernando Peres Francisco Assis da Silveira Junior Josué Augusto Pancini
Geraldo Dias Pacheco André Rodrigues Cano
Deputy Directors João Alexandre Silva Moacir Nachbar Junior
Altair Antônio de Souza Leandro José Diniz Amilton Nieto
Denise Pauli Pavarina Luis Carlos Furquim Vermieiro Antonio José da Barbara
Moacir Nachbar Junior Mauricio Gomes Maciel Aurélio Guido Pagani
Octávio de Lazari Júnior Osmar Sanches Biscuola Edilson Wiggers
Wilson Reginaldo Martins Eurico Ramos Fabri
Department Directors Frederico William Wolf
Adineu Santesso Compensation Committee Gedson Oliveira Santos
Alexandre Rappaport Lázaro de Mello Brandão - Coordinator Jorge Pohlmann Nasser
Amilton Nieto Luiz Carlos Trabuco Cappi José Luiz Rodrigues Bueno
André Bernardino da Cruz Filho Antônio Bornia Paulo Faustino da Costa
Antonio Carlos Melhado Mário da Silveira Teixeira Júnior João Sabino
Antonio José da Barbara Carlos Alberto Rodrigues Guilherme
Arnaldo Nissental Milton Matsumoto Executive Disclosure Committee
Aurélio Guido Pagani Sérgio Nonato Rodrigues (non-Management member) Luiz Carlos Angelotti - Coordinator
Bruno D’Avila Melo Boetger Julio de Siqueira Carvalho de Araujo
Cassiano Ricardo Scarpelli Audit Committee Domingos Figueiredo de Abreu
Clayton Camacho Carlos Alberto Rodrigues Guilherme - Coordinator Marco Antonio Rossi
Diaulas Morize Vieira Marcondes Junior Romulo Nagib Lasmar Alexandre da Silva Glüher
Edilson Wiggers Osvaldo Watanabe Moacir Nachbar Junior
Eurico Ramos Fabri Paulo Roberto Simões da Cunha Antonio José da Barbara
Fernando Antônio Tenório Marcelo Santos Dall’Occo
Fernando Roncolato Pinho Compliance and Internal Control Committee Marcos Aparecido Galende
Frederico William Wolf Mário da Silveira Teixeira Júnior - Coordinator Paulo Faustino da Costa
Gedson Oliveira Santos Carlos Alberto Rodrigues Guilherme Haydewaldo R. Chamberlain da Costa
Glaucimar Peticov Milton Matsumoto
Guilherme Muller Leal Julio de Siqueira Carvalho de Araujo Fiscal Council
João Albino Winkelmann Domingos Figueiredo de Abreu Sitting Members
João Carlos Gomes da Silva Marco Antonio Rossi João Carlos de Oliveira - Coordinator
Joel Antonio Scalabrini Alexandre da Silva Glüher Nelson Lopes de Oliveira
Johan Albino Ribeiro Clayton Camacho José Maria Soares Nunes
Jorge Pohlmann Nasser Frederico William Wolf Domingos Aparecido Maia
José Luis Elias Gedson Oliveira Santos Luiz Carlos de Freitas
José Luiz Rodrigues Bueno Rogério Pedro Câmara Deputy Members
Renaud Roberto Teixeira
Jorge Tadeu Pinto de Figueiredo
Nilson Pinhal
João Batistela Biazon
Oswaldo de Moura Silveira
General Accounting Department
Marcos Aparecido Galende Ombudsman Department
Accountant - CRC 1SP201309/O-6 Júlio Alves Marques - Ombudsman

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Independent Auditors’ Report on the Consolidated Financial Statements

206 Report on Economic and Financial Analysis – June 2014



To the Board of Directors and Shareholders
Banco Bradesco S.A.
Osasco – SP



We have audited the accompanying consolidated financial statements of Banco Bradesco S.A. (“Bradesco”),
which comprise the consolidated statement of financial position as at June 30, 2014, the statements of income,
changes in equity and cash flows for the semester then ended, and notes, comprising a summary of significant
accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Bradesco’s Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting practices adopted in Brazil applicable to institutions authorized to operate by
the Brazilian Central Bank and for such internal control as management determines is necessary to enable the
preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

Independent Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with Brazilian and International Standards on Auditing. Those standards require that
we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, we consider internal control relevant to Bradesco’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the Bradesco’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.

Opinion

In our opinion, the above - mentioned consolidated financial statements, present fairly, in all material respects,
the consolidated financial position of Banco Bradesco S.A., as at June 30, 2014, and of its consolidated
financial performance and its consolidated cash flows for the semester then ended in accordance with
accounting practices adopted in Brazil applicable to institutions authorized to operate by the Brazilian Central
Bank.


Other matters

Consolidated statement of value added

We have also audited the consolidated statement of value added (DVA), preparation of which is the
responsibility of the Banco Bradesco S.A’s Management, for the semester ended June 30, 2014, which
presentation is required by publicly-held companies under the Brazilian Corporate Law. The aforementioned
statement was subject to the same auditing procedures described above and, in our opinion, is fairly presented,
in all material respects, in relation to the financial statements taken as a whole.

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Independent Auditors’ Report on the Consolidated Financial Statements


Bradesco 207
Review of the amounts related to the first and second quarters of 2014

The consolidated balance sheet information as of March 31, 2014 and the related consolidated statements of
income, cash flows, value added and the statement of changes in shareholders’ equity for the first and second
quarters of 2014, which are presented herein by the Bradesco’s Management as supplemental information,
were reviewed by us, on which we issued reports that did not contain any modifications, dated April 23, 2014
with reference to March 31, 2014 and the first quarter of 2014, and July 30, 2014 with reference to the second
quarter of 2014.





Osasco, July 30, 2014



Original report in Portuguese signed by
KPMG Auditores Independentes
CRC 2SP028567/O-1 F SP

Cláudio Rogélio Sertório
Accountant CRC 1SP212059/O-0


Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Audit Committee Report Summary

208 Report on Economic and Financial Analysis – June 2014
Corporate Governance and Related
Responsibilities

Banco Bradesco S.A.’s Board of Directors has opted
for a single Audit Committee for all companies
belonging to the Financial Conglomerate, including
those belonging to Grupo Bradesco Seguros.

The Audit Committee is a statutory advisory body,
linked directly to the Board of Directors. Currently, it
consists of one advisor and three other members,
appointed each year by the Board of Directors, based
on criteria established in the applicable laws and
regulations.

The Board is responsible for defining and
implementing data collection processes and
procedures in order to prepare the financial
statements of the companies comprising the
Bradesco Organization, observing the accounting
practices adopted in Brazil, which are applicable to
institutions authorized to operate by the Brazilian
Central Bank, and observing the standards set out by
the National Monetary Council of the Brazilian Central
Bank, Securities and Exchange Commission (CVM),
National Private Insurance Council (CNSP),
Insurance Superintendency (Susep), and by the
National Supplementary Healthcare Agency (ANS).

The Board is also responsible for processes, policies
and internal control procedures designed to
safeguard the company’s assets, timely recognition of
liabilities, and mitigation of the Bradesco
Organization’s risk factors to acceptable levels.

The Independent Auditing is responsible for
examining the financial statements and issuing a
report on their compliance with generally accepted
accounting principles. In addition, as a result of its
work for the purpose of issuing said report, the
Independent Auditing develops a report of
recommendations regarding accounting procedures
and internal controls, without prejudice to other
reports which it is also responsible for preparing, such
as the report on limited reviews of quarterly
information required by the Brazilian Central Bank
and by CVM.

The Internal Auditing (General Inspectorate
Department) is responsible for assessing the quality
of the Bradesco Organization’s internal control
systems and its compliance with policies and
procedures defined by the Board, including those
adopted in the preparation of accounting and financial
reports.

The Audit Committee’s duties and responsibilities are
to assess the quality and effectiveness of the Internal
and Independent Audits, the effectiveness and
sufficiency of the Bradesco Organization’s internal
control systems, and to analyze the financial
statements, issuing relevant recommendations, as
applicable.

The tasks of the Audit Committee also includes those
required by Sarbanes-Oxley for companies registered
with the U.S. Securities and Exchange Commission
and listed on the New York Stock Exchange.

The rules of the Audit Committee are available at
www.bradesco.com.br, area of Corporate
Governance.

Activities relating to the first half of 2014

The Committee has participated in 105 meetings with
the business, control and risk management areas,
and with the internal and independent auditors,
verifying, through different sources, information
related to aspects considered relevant or critical.

The Audit Committee work program for the 2014
financial year focused on the main business
processes and products associated to the Bradesco
Organization. The most relevant aspects include:

? procedures for the development and disclosure of
financial reports to shareholders and external
users of accounting and financial information;

? credit and operational risk management and
control systems, preparation to use internal
models in line with the conditions laid down by the
New Basel Capital Accord (Basel II and III) and
applicable regulations set forth by the Brazilian
Central Bank; and

? improvements in the internal control systems
arising from projects related to Technology and
Risk Management.

Internal Control Systems

Based on the work program and schedule established
for the first half of 2014, the Audit Committee
gathered information about the main processes within
the Organization, evaluating their quality and the
directors’ commitment of the leaders with their
continuous improvement.

As a result of meetings held with the departments of
the Bradesco Organization, the Audit Committee had
the opportunity to offer the Board of Directors
suggestions to improve the processes, as well as to
monitor the implementations of recommendations for
improvement identified during the audit work, and in
discussions with the business and control areas.

Based on observations and collected information, the
Audit Committee has determined that the Bradesco
Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Audit Committee Report Summary


Bradesco 209
Organization’s internal control system is suitable for
the size and complexity of its business, and is
structured in such a way as to ensure the efficiency
of its operations, of the systems that generate the
financial reports, as well as compliance with internal
and external requirements applicable to the
transactions.

Independent Audit

The independent audit work plan for the 2014
financial year was discussed with KPMG Auditores
Independentes (KPMG), and during the first half of
2014 the audit teams responsible for the services
have presented the results and main findings to the
Audit Committee.

The relevant items mentioned in the report on the
study and evaluation of accounting and internal
control systems, prepared in connection with the
examination of financial statements and their
recommendations for improving these systems, were
discussed with the Committee, which requested
monitoring the implementations of the improvements
to be made in the responsible areas.

Based on the plan presented by the auditors and in
subsequent discussions on the results, the
Committee considers that the work conducted by the
teams were suited to the Organization's business.

Internal Audit

The Committee requested the Internal Audit to
consider, in its planning for the first half of 2014,
several works in line with the topics covered on the
Committee’s agenda.

During the first half of 2014, the teams responsible for
executing the planned activities reported and
discussed with the Audit Committee the main
conclusions on the vision of process and associated
risks.

Based on the discussions on the Internal Audit’s work
plan focused on risks, processes and in the
evaluation of its results, the Audit Committee
considers that the Internal Audit has responded
adequately to the Committee’s demands and to the
needs and requirements of the Organization and the
regulatory authorities.
Consolidated Financial Statements

The Committee has met with the departments of
General Accounting, Planning, Budget and Control,
and Internal Audit to evaluate the monthly, quarterly
and semi-annual financial statements. At these
meetings, the Committee analyzed and evaluated
aspects related to the preparation of individual and
consolidated interim balance sheets and balance
sheets, notes, and the financial reports published in
association with the consolidated financial
statements.

The Committee also considered the accounting
practices adopted by Bradesco in the preparation of
financial statements, and its compliance with the
accounting practices adopted in Brazil applicable to
institutions authorized to operate by the Brazilian
Central Bank, as well as its compliance with the
applicable legislation.

Before disclosing the Quarterly information (ITR) and
the semi-annual balance sheet, the Committee met
with KPMG to evaluate aspects related to the
auditors’ independence and the control environment
in the preparation of the figures to be disclosed.

Based on the reviews and discussions referred to
above, the Audit Committee recommends to the
Board of Directors to approve the audited financial
statements related to the semester ending on June
30, 2014.





Cidade de Deus, Osasco, São Paulo, July 30, 2014





CARLOS ALBERTO RODRIGUES GUILHERME
(Coordinator)

ROMULO NAGIB LASMAR

OSVALDO WATANABE

PAULO ROBERTO SIMÕES DA CUNHA

Financial Statements, Independent Auditors’ Report, Audit Committee Report Summary and Fiscal Council’s Report

Fiscal Council’s Report

210 Report on Economic and Financial Analysis – June 2014





The undersigned members of the Fiscal Council of Banco Bradesco S.A., in the
exercise of their legal and statutory duties, having examined the Management Report and the Individual and
Consolidated Financial Statements related to the first semester of 2014, and the technical feasibility study of
taxable income generation, brought at present value, which has the purpose of recording the Deferred Tax
Assets pursuant to CVM Rule n
o
371/02, Resolution n
o
3059/02, of the National Monetary Council, and Bacen
Circular Letter n
o
3171/02, and in view of the unqualified report prepared by KPMG Auditores Independentes,
are of the opinion that the aforementioned documents, based on the accounting practices adopted in Brazil
applicable to entities authorized to operate by the Brazilian Central Bank, fairly reflect the Company’s equity
and financial position.








Cidade de Deus, Osasco, São Paulo, July 30, 2014









João Carlos de Oliveira

Nelson Lopes de Oliveira

José Maria Soares Nunes

Domingos Aparecido Maia

Luiz Carlos de Freitas












For further information, please contact:

Board of Executive Officers
Luiz Carlos Angelotti
Managing Director and Investor Relations Officer
Phone: (11) 3681-4011
Fax: (11) 3684-4630
[email protected]

Market Relations Department
Paulo Faustino da Costa
Phone: (11) 2178-6201
Fax: (11) 2178-6215



Avenida Paulista, 1.450 – 1º andar
CEP 01310-917 – São Paulo-SP
Brazil

www.bradesco.com.br/ir



doc_982959071.pdf