BANCO BRADESCO Banco Bradesco S.A. ("Bradesco") announces to its shareholders, clients, collaborators and to the market in general that it prepared complete consolidated financial statements for the years ended December 31, 2016 and 2015, according to the International Financial Reporting Standards - IFRS, in conformity with the pronouncements issued by the International Accounting Standards Board - IASB, pursuant to Resolution 3,786/09 of the Brazilian Monetary Council (CMN) and CVM Rule 457/07.
See below, the main changes seen in our consolidated financial statements due to the adoption of IFRS:
Comparison between BR GAAP and IFRS - in Reais millionsBalance sheet | 12/31/2016 | ||
BR GAAP (1) | Differences (2) | IFRS | |
Assets | 72,555 | - | 72,555 |
Cash and balances with banks............................................... | |||
Financial assets held for trading............................................. | 213,140 | - | 213,140 |
Financial assets available for sale......................................... | 113,152 | (33) | 113,119 |
Investments held to maturity................................................... | 42,980 | 22 | 43,002 |
Assets pledged as collateral................................................... | 155,287 | - | 155,287 |
Loans and advances to banks................................................ | 94,838 | - | 94,838 |
Loans and advances to customers (3)..................................... | 348,108 | 19,195 | 367,303 |
Non-current assets held for sale............................................ | 1,579 | - | 1,579 |
Investments in associated companies and joint ventures....... | 6,889 | 114 | 7,003 |
Property and equipament....................................................... | 7,722 | 675 | 8,397 |
Intangible assets and goodwill................................................ | 16,339 | (541) | 15,798 |
Taxes to be offset................................................................... | 7,723 | - | 7,723 |
Deferred income taxes............................................................ | 50,956 | (5,839) | 45,117 |
Other assets........................................................................... | 48,339 | (1,170) | 47,169 |
Total assets.......................................................................... | 1,179,607 | 12,423 | 1,192,030 |
12/31/2015 | ||
BR GAAP (1) | Differences (2) | IFRS |
72,092 | - | 72,092 |
159,623 | - | 159,623 |
117,519 | 176 | 117,695 |
40,004 | - | 40,004 |
144,490 | - | 144,490 |
35,620 | - | 35,620 |
332,784 | 12,085 | 344,869 |
1,247 | - | 1,247 |
5,824 | (9) | 5,815 |
5,496 | 8 | 5,504 |
6,764 | 646 | 7,410 |
6,817 | - | 6,817 |
49,569 | (4,171) | 45,398 |
41,059 | (940) | 40,119 |
1,018,908 | 7,795 | 1,026,703 |
Liabilities Deposits from banks.............................................................. Deposits from customers........................................................ Financial liabilities held for trading......................................... Funds from securities issued.................................................. Subordinated debt.................................................................. Insurance technical provisions and pension plans................. Other provisions..................................................................... Current income tax liabilities................................................... Deferred income tax liabilities................................................. Other liabilities........................................................................ Shareholders´ equity of controlling................................... Non-controlling interest...................................................... | 301,663 232,748 13,436 151,065 52,611 215,840 18,292 2,130 3,277 87,654 100,442 449 | - - - 37 - - - - (1,514) 9,312 4,860 (272) | 301,663 232,748 13,436 151,102 52,611 215,840 18,292 2,130 1,763 96,966 105,302 177 |
Total liabilities and shareholders´equity........................... | 1,179,607 | 12,423 | 1,192,030 |
293,903 194,510 19,346 109,850 50,283 170,941 15,364 2,781 2,840 69,788 88,907 395 | - - - - - - - - (2,068) 8,250 1,883 (270) | 293,903 194,510 19,346 109,850 50,283 170,941 15,364 2,781 772 78,038 90,790 125 |
1,018,908 | 7,795 | 1,026,703 |
Information presented herein consider amounts calculated pursuant to the accounting practices adopted in Brazil (BR GAAP), which are applicable to financial institutions, in accordance with the regulations of the Brazilian Central Bank, and classified according to the presentation model determined by IFRS;
Differences refer to reclassification between accounts and other effects from the adoption of IFRS; and
The loan and advances to customers' portfolio is presented net of provision for impairment losses.
See below, reconciliation of Shareholders' Equity and Net Income for the 2016 and 2015 years:
Reconciliation of Shareholders´Equity and Net Income - in R$ millions
Differences | Shareholders´ Equity | Net Income | Shareholders´ Equity | Net Income |
12/31/2016 | 2016 | 12/31/2015 | 2015 | |
BR GAAP.................................................................................................................. | 100,442 | 15,084 | 88,907 | 17,190 |
1) Adjustment to the recoverable value of loans and advances................................. | 4,303 | 2,205 | 2,098 | 1,095 |
2) Business combinations.......................................................................................... | 359 | 669 | (312) | 44 |
Others.................................................................................................................... | 198 | (64) | 97 | (196) |
IFRS - Attributable to the controlling shareholder (1)........................................... | 105,302 | 17,894 | 90,790 | 18,133 |
Non-controlling shareholder.................................................................................. | 177 | 99 | 125 | 105 |
IFRS - Attributable to the controlling and non-controlling shareholder (1)........ | 105,479 | 17,993 | 90,915 | 18,238 |
(1) The net income basis for the calculation of dividends and interest on capital paid to shareholders, is originally from BR GAAP, which was released on February 02, 2017.
Below is a description of the main adjustments from the adoption of IFRS:
Adjustment to the recoverable value of loans and advances
Impairment of loans and advances were established based on the history of losses and other information about the clients of the organization at the balance sheet date and clear evidences that show losses had occurred after the initial recognition of the financial asset (concept of loss incurred), while in BR GAAP, the concept of expected losses is used.
Business combinations
Under IFRS, the identifiable assets and liabilities in business combinations were adjusted for differences in accounting practices, and recognized at their fair value, based on a study report on purchase price allocation (PPA). In addition, goodwill is not amortized, but tested periodically to determine whether there is objective evidence of impairment.
The complete consolidated financial statements under IFRS, for the years ended December 31, 2016 and 2015, followed by the independent auditors´ report on the consolidated financial statements, without any modification, issued by KPMG Independent Auditors, are available on our website www.bradesco.com.br/ir.
Cidade de Deus, Osasco, S.P, February 24, 2017 Banco Bradesco S.A.
Alexandre da Silva Glüher Managing Director Vice-President and Investor Relations OfficerShould you have any questions or require further information, please contact Mr. Carlos Wagner Firetti, phone 55 11 2194-0921, e-mail carlos.firetti@bradesco.com.br; Mrs. Ivani Benazzi de Andrade, phone 55 11 2194-0924, e-mail:ivani.andrade@bradesco.com.bror Mr. Carlos Tsuyoshi Yamashita, phone 55 11 2194-0920, e-mail:carlos.yamashita@bradesco.com.br .
Banco Bradesco SA published this content on 24 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 February 2017 08:22:12 UTC.
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