ABOUT THIS MATERIAL Contact channels Questions, suggestions or comments about this publication can be made on the Investor Relations website at (www.banco.bradesco/ri) or sent via email: [email protected] We can also be found on social networks: Facebook Instagram Linkedin YouTube Twitter ABOUT THIS MATERIAL Contents Message from the Chairman of the Board of Directors 6 Message from the CEO 8 2020 in Figures 10 Performance during Covid-19 16 About this Material 20 Materiality 22 Our DNA 24 Our Strategic Positioning 26 Business Model 30 Much more than a Bank 35 Sustainability at Bradesco 42 Solid and Transparent Governance 50 Integrity and Ethics 53 Risk Management 56 Generating Value 62 Results in a Challenging Year 64 Focus on the Client 76 Technology and Innovation 91 People: Our Team 102 Investing in the Future 122 Eco-efficiency 128 Investor Relations 131 BRADESCO Integrated Report | Shortened Version 2020 ABOUT THIS MATERIAL 4 Introduction It’s impossible to talk about a year like Despite the uncertainties in 2020, we 2020 without weighing the impacts also delivered strong results for the brought on by an unprecedented Organization, including a growth in our pandemic that modified the way we view quarterly net income throughout the our relationships with work, with people year, an expanded loan portfolio and and with the planet. a significant increase in the number of transactions through our digital This sudden collapse in all things we had channels – a situation that emphasizes considered normal paved the way for us the importance of providing the most to see the world in a different light. The convenient, modern, fast and secure focus on managing environmental, social banking experience for the client. and governance factors, along with a true contribution to sustainable development, While we already worked in a committed has grown to make elements even more and responsible manner before, now relevant and integral in our decisions – we strive to be leaders of change in not only as a matter of responsibility, but the coming “Decade of Action”, as the also as a business belief and strategy. United Nations (UN) has been referring to these next 10 years. Over the This was the year we revised our following pages, you will learn how we corporate strategy by establishing put this strategy into practice. It’s what positive agendas associated with all makes us unique, and we have been of our businesses and focusing on the working in this manner for almost eight roots of our origins: client centricity. decades through an ecosystem that is We have invested even more in continuously improving. technology to not only improve our communications, but to also expedite Enjoy the reading! shifts in the way people interact with Bradesco to make it much easier. BRADESCO Integrated Report | Shortened Version 2020 5 How to Read the Report1 Capitals In each chapter, we will point out the correlations between the FINANCIAL SHARE topics discussed and the directives CAPITAL CAPITAL proposed through the integrated reporting methodology, the HUMAN MANUFACTURED stakeholders who are impacted and CAPITAL CAPITAL the Sustainable Development Goals (SDGs) to which our activities have INTELLECTUAL NATURAL contributed. The correlation is done CAPITAL CAPITAL using icons (on the right side). The other subsidiaries are always Stakeholders represented by their names. When CL CLIENTS G GOVERNMENT/ we talk about our professional REGULATORY AGENCIES staff, we always use the term PI INTERNAL AUDIENCE CD COMMUNITY/SOCIETY/ “employee”. The term associate is AI SHAREHOLDERS TERTIARY SECTOR used only to refer to outsourced AND INVESTORS service providers. F SUPPLIERS 1. Throughout this report, the Organization’s direct SDGs and indirect contribution to the 2030 Agenda Elimination 1 10 Reducing inequalities - the Sustainable Development Goals will be of poverty documented. Find out more about the prioritized Sustainable Cities SDGs in the Sustainability Chapter on page 42. Zero hunger and 11 and Communities 2 sustainable agriculture Sustainable consumption 12 3 Health and well-being and production 4 Quality education Action against global 13 5 Gender equality climate change Clean water 14 Life below water 6 and sanitation 15 Life on land Affordable and 7 Peace, justice and clean energy 16 strong institutions Decent work and 8 Partnerships and means economic growth 17 Bradesco prioritized SDGs of implementation Industry, innovation 9 and infrastructure BRADESCO Integrated Report | Shortened Version 2020 ABOUT THIS MATERIAL 6 Luiz Carlos Trabuco Cappi Chairman of the Board of Directors MESSAGE FROM THE Chairman of the Board of Directors BRADESCO Integrated Report | Shortened Version 2020 MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS 7 2020 was a year unlike any other. In 2020, companies and investors We believe in the power of the Punctuated by the covid-19 around the world stepped up their digital world and in the extensive pandemic, it put us to the test commitment to environmental, use of data to optimize the and appeared as one of the most social and governance (ESG) issues. customer experience without challenging moments in our At Bradesco, sustainability is a key overlooking the traditional history. But even within such a component of our strategy and it parameters: quality service difficult landscape, we were able has gained even more momentum and transparent relationships. to find opportunities that, once over the last year. We have amplified The daily goal is to effect again, made us reinvent ourselves our activities in sustainable finance transformations and strive through the perspective of and now exclusively use renewable to adapt to a world in which innovation and evolution. energy and carbon neutralization in paradigms are continually our business. shattered. Today, we have We reinforced our core mission a complete platform for all – 100% focus on the client – In 2021, we will take further stages of our clients’ lives with remaining always at their side measures to ensure that nationwide coverage and strategic during this time filled with Bradesco’s businesses generate points abroad, ensuring a physical considerable uncertainties. even more long-term value and digital presence designed to We believe in Brazil and in the for our various stakeholders support every type of client. ability of its people to overcome and contribute to achieving challenges and to create wealth. the Sustainable Development Our goal for 2021 and the coming I can truly state that we are Goals (SDGs), such as steering years is to use the power of optimistic about the future. the force of innovation towards innovation in traditional processes. sustainability, improving the It involves observing what we have We have paid close attention to management of climatic factors done thus far and understanding social responsibility since the in our business decisions, and clients’ needs right now, but with a beginning of our activities, and enhancing transparency about our view towards the future. We have the prime example is Fundação practices and performance. seen the evolution of humanity and Bradesco. We care deeply about we are committed to adapting our people’s lives and the continuity of The longevity of our business is performance to grow along with it, companies, and this has not changed also based on principles that are thereby fulfilling our mission in the during the pandemic. We continue to embedded in our daily performance, best possible way, while remaining be mindful of the health and safety including prudent asset and liability within the ethics and transparency of our workers, employees and management of the bank and the that have guided us thus far. clients. We have intensified the use insurance company, as well as the and availability of digital solutions in pursuit of appropriate returns on Luiz Carlos Trabuco Cappi an effort to make sure that everyone capital for shareholders. Chairman of the can continue their activities in the Board of Directors midst of the restrictions imposed by this ongoing situation. BRADESCO Integrated Report | Shortened Version 2020 ABOUT THIS MATERIAL 8 Octavio de Lazari Junior President and CEO MESSAGE FROM THE CEO BRADESCO Integrated Report | Shortened Version 2020 MESSAGE FROM THE CEO 9 This year, surrounded by so much The pandemic has accelerated We finished off the year with uncertainty, we came across new trends that have already a recurring net income of opportunities. We have evolved been taking place, like new R$19.5 billion. We posted a strong greatly and have learned many developments in the use of operational performance and we lessons, remaining close to our digital channels. In 2020, 98% of set aside provisions for loan losses clients and continuing to play a transactions were done digitally, throughout the year, thereby role in the development of the most notably through cell phones allowing our balance sheet to country. We act quickly to ensure and the internet. This represents remain resilient in facing that our service is delivered while a 14% growth over the previous potential defaults generated making sure to comply at all times year. We have also made progress by the pandemic. with procedures prescribed for the in credit collection and recovery health of employees and clients. through our digitalization. For 2021, we will continue with the goal of combining environmental The client is at the center of our Accordingly, we have continued to preservation, social actions and strategy, and this is embedded