Annual Report 2011 - bradescori.com.br · 4 ANNUAL REPORT - 2011 report ManageMent Banco Bradesco Europa S.A., BBE, formerly Banco Bradesco Luxembourg S.A., presents to its stakeholders

AnnualReport2011

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Board of directors

Antônio Bornia, President

Luiz Carlos Trabuco Cappi, Vice President

Jean Philippe Leroy, Member

Sérgio Alexandre Figueiredo Clemente, Member

ManageMent

Jean Philippe Leroy, Managing Director

Edesio de Paula e Silva, General Manager

Jefferson Marcon Avelino, Senior Manager from February 13th, 2012

external auditor

KPMG Luxembourg S.à.r.l.

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directorsWe submit for the approval of our shareholders the annual accounts for the year

ended December 31, 2011 which resulted in a net profit of USD 23.701.130,78.

These annual accounts were examined by our auditors, KPMG Audit Luxem-

bourg S.à.r.l. whose report is attached herewith.

It is proposed to distribute the total amount of USD 23.701.130,78 as follows:

Free reserves USD 23.701.130,78

Total USD 23.701.130,78

It is proposed as well to transfer the balance of the following account into fiscal

reserves:

Net worth tax referring to 2011 USD 5.100.500,00

Total USD 5.100.500,00

We would like to thank the management and the staff for their contribution to

the satisfactory development of our activities during the fiscal year 2011.

São Paulo, March 19, 2012

report of the Board of

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ANNUAL REPORT - 2011

reportManageMent

Banco Bradesco Europa S.A., BBE, formerly Banco Bradesco

Luxembourg S.A., presents to its stakeholders its annual accounts for

the year ended December 31, 2011.

In terms of the macroeconomic outlook, concerns over the fiscal state

of the advanced economies grew during the second half of the year,

particularly in relation to Europe. The complex nature of the issue

and the political difficulties in finding fast, effective answers to the

problems hit market confidence and resulted in a worsening in the

risk perception of a number of countries, some of which even had

AAA ratings at that time. The economic growth of the emerging

economies started to cool during this same period as a result of the

lagged effects of the economic policy adopted at the beginning of last

year against a backdrop of strong inflationary pressures. However,

since the end of 2011, we have seen some signs of interruption in the

global deterioration which has benefited from the European Central

Bank´s initiative to inject liquidity into the banking system in the Euro

Zone. These actions have been shown to be effective to date and

reduced the risk of the banking rupture that had been foreseen until

then. At the same time, there has also been a discernible improvement

in the recovery of the PMI indicators of the industrial sector and the

American job market, and an interruption in the downward revision

process for China´s economic growth. These signs of improvement

have not eliminated the risks to the global economy but are helping to

reduce risk aversion and maintain international liquidity at high levels

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to support the recovery of commodity prices which have also benefited

from climatic shocks in the case of agricultural commodities.

Although not immune to what happens abroad, Brazil is better

prepared than it was three years ago at the peak of the 2008 crisis, to

address eventual materialization of risks. The country has more degrees

of freedom to embrace countercyclical actions than most nations and

has been highly rated by the international community, explaining why

Brazil is still perceived as a major pole of attraction for global foreign

direct investment.

Despite the undeniable exporting nature of the country, domestic

demand has been and should continue to be the main driver of the

performance of Brazilian economic activity. Household consumption

has been driven by a healthy labor market, while investments have

benefited from the opportunities related to the coming sporting events

of 2014 and 2016 and “pre-salt” oil exploration.

The year of 2011 was an outstanding year for Banco Bradesco Europa.

Total assets increased by 95% on a year-over-year basis, from USD 982

million to USD 1.923 million. Lending activities to credit institutions

grew by approximately 60% and advances to customers have shown a

significant jump of 100% when compared to 2010.

Amounts owed to credit institutions increased by 91% from USD 592

million to USD 1.129 million. Funding from Credit Institutions, other

than the Banco Bradesco Group, increased by 263%, from USD 105.8

million in 2010 to USD 278.3 million in 2011.

Total off balance sheet items comprising fiduciary and agency functions,

assets held in custody for customers, commitments, contingent

liabilities and non-trading derivative instruments showed an increase

of 9% from USD 1.448 million to USD 1.573 million at year end 2011.

As of December 31, 2011 the solvency ratio reached 18,6% (Tier 1),

well above the minimum requirement of 8%, liquidity ratio stood at

47,3% and R.O.A.E at 7,2%. Always focused on improving efficiency,

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the cost to income ratio reached 28,9%.

The reported profit for the year increased from USD 14.4 million to

USD 23.7 million. The recurring profit moved from USD 11 to USD 22.7

million, based on the growth of activities, proving the right strategy

chosen by the Bank. Corporate Banking and Trade Finance contributed

to 80% of the profit and Private Banking to 20%.

In terms of Corporate Banking and Trade Finance, during 2011, Banco

Bradesco Europa participated and/or originated 11 deals totaling more

than USD 650 million.

The general administrative expenses increased by 44% mainly due

to the increase of 65% in staff and I.T. investments. During the year

of 2011, on the Senior Management side, Mr. Jaime Carlito Herbert,

Deputy General Manager, returned to Banco Bradesco in Brazil, to a

new assignment. On top of this movement, Mr. Jean Philippe Leroy

was promoted to Managing Director and Mr. Edésio de Paula e Silva

became General Manager.

BBE is a member of the non-profit association “Association pour la

Garantie des Dépôts, Luxembourg“ (“AGDL“), whose sole object is

the establishment of a mutual guarantee scheme covering deposits

made by customers of member credit institutions (“the Guarantee“).

The customers covered by the Guarantee include all depositors who

are physical persons, whatever their nationality or country of residence.

Also covered by the Guarantee are small companies constituted under

the law of a Member State of the European Union, whose size is

such that they would be permitted to draw up abbreviated accounts

pursuant to Article 35 of the law of December 19, 2002 modified

as per the new statutes adopted by Extraordinary General Meeting

of AGDL as of February 18, 2009 on the register of commerce and

companies and the accounting and annual accounts of undertakings.

The total amount of the Guarantees, as modified by statutes in 2009,

which will in no case exceed per customer EUR 100.000 deposit

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guarantee and EUR 20.000 investor compensation, represents an

absolute figure and cannot be increased by any interest, charges or

any other amount.

As of December 31, 2011, the Bank had a cumulative AGDL provision

for an amount of USD 1.847.718 (2010: USD 1.731.746), in recognition

of its potential liabilities under the guarantee. This provision is deemed

to be sufficient to cover potential obligations of BBE regarding the

AGDL.

In 2012, BBE intends to take advantage of the positive forecasts related

to the Brazilian economy to strengthen its position by further enlarging

its private banking customer base and volume of corporate lending.

Special attention will continue to be dedicated to meet the financial

needs of Brazilian and European corporations already known by the

Bradesco Group. To boost and give more focus to these activities, in

2011, BBE has brought a Corporate Banking Officer from Bradesco

Brazil and hired a local Private Banking Head, to further build up the

activities.

risk ManageMent

Risk management involves a series of controls and processes covering

different areas. BBE’s senior management is directly responsible for

the enforcement of the policies in respect of all activities and for the

quality of the organizational standards. BBE is constantly committed

to enhancing its risk management related activities in the pursuit

of incorporating the recommendations of the banking supervisory

authorities and best international practices. As a matter of principle,

BBE adopts a conservative policy in terms of exposure to risk. The

following areas of risk are monitored and analyzed accordingly.

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credit risk

The lending activities are carried out according to the credit policies

of the Bradesco Group. The credit evaluation process and risk scoring

system are centralized in the shareholder’s office in Brazil observing

the guidelines of the banking supervisory authorities and market

practices. BBE is constantly working to improve procedures to develop

new loss estimation models, prepare rating inventories concerning the

various sectors in which the Group operates, oversee credit analysis,

monitor credit concentration, identify causes of default and prepare

risk mitigation plans. Efforts are focused on the adoption of advanced

models to assess risks inherent to all components of the credit process,

in line with best practices, as well as the Basel II requirements.

The credit scoring system supports the establishment of parameters for

granting credit, managing risk and defining credit policies adequate

to the customer’s specific characteristics and size. Also, it provides a

basis for the adequate pricing of operations and for establishing the

appropriate level of guarantees for each situation. Customer risk ratings

are established on a corporate basis and are permanently reviewed to

monitor the quality of the credit portfolio.

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The ratings are segmented according to the following table:

Rating Bradesco % Provision Concept

AA Excellent 0,0 Premium company/group, with size, tradition and market leadership, with excellent reputation and economic and financial position.

A Very Good 0,5 Company/group, with size, sound economic and financial position, acting in markets with good prospects and/or potential for expansion.

B Good 1,0 Company/group, which, regardless of size, has a good economic and financial position.

C Acceptable 3,0 Company/group with a satisfactory economic and financial situation but with performance subject to economic scenario variations.

D Fair 10,0 Company/group with economic and financial position in decline or unsatisfactory accounting information, under risk management.

E Deficient 30,0

Abnormal course credit operations, classified based on expected loss as per percentage shown.

F Bad 50,0

G Critical 70,0

H Uncollectible 100,0

As at December 31, 2011 there were no loans rated below C in the portfolio.

All credit transactions are subject to the prior approval of the shareholder’s credit committee and

ratification by local management. The regulatory maximum exposure limit to any individual borrower or

economic group is monitored on a permanent basis.

liquidity risk

Liquidity risk management is designed to control the different mismatched liquidation terms

between rights and obligations, as well as the liquidity of the assets. The liquidity ratio is monitored

on a daily basis to ensure the compliance with the requirement of the banking supervisory authority.

In addition, the Treasury department produces on a daily basis the cash flow position for the next

10 business days. The control of the maturity ladder of receivables and payables in each currency

is controlled through reports generated by the accounting system. BBE is working to implement

the recommendations of the Circular CSSF 09/403 on liquidity risk management, including the

revision of a contingency funding plan.

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foreign exchange risk

The foreign exchange operations are predominantly customer-

driven. BBE buys and sells currencies to assist its customers, to fulfill

its obligations in currencies other than the US Dollar and to hedge

against Foreign Exchange fluctuations that can jeopardize its

results. Management monitors the foreign currency position on a

daily basis using system-generated reports that show the exposure

in each of the currencies, and makes sure that adjustments are

made on a timely basis. From time to time BBE enters into foreign

exchange Swap transactions to hedge against the potential

negative effect of the exchange rate USD/EUR on certain loans that

will be repaid in the future.

interest rate risk

Interest rate risk is related to the potential loss of income resulting

from the effect of interest rate fluctuations. This risk is monitored

on a constant basis and is relatively low due to the fact that most

of the floating rate exposures on the asset side of the balance

sheet are funded by floating rate liabilities. The residual interest

rate risk is not hedged, but is not sufficiently high to endanger the

profitability, even in the case of important shifts in the interest rate

curves.

adMinistrative and operational risks

These risks are inherent to activities that give support for the

operations and can impact BBE’s ability to provide quality services

on a continuous basis. They are commonly associated with human

or technological failure.

These risks are mitigated by the close involvement of the local

administration in the daily activities. Segregation of duties and

the application of the four-eye principle are enforced at all levels

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in order to ensure compliance with supervisory regulations and

internal policies. The internal policies and procedures are enhanced

on a regular basis in order to improve controls and management

information systems. Also, BBE’s business continuity plan is tested

annually.

Market risk

This risk is common to an entire class of assets or liabilities. It

relates to the potential for loss resulting from economic changes or

other events that might impact the prices in large portions of the

market. BBE’s policy is not to undertake high-risk or highly geared

operations, nor to undertake speculative dealing operations for its

own account.

BBE’s measurement and control over its market risk is achieved by

requiring all transactions entered into by the dealing room to be

authorized by Luxembourg Senior Management, and ensuring that

all its counterparties are authorized in advance by Management.

Market risk is reduced to an acceptable level by Senior Management

involvement in all areas of activities.

settleMent risk

The risk that the counterparties do not fulfill their obligations

at the occasion of the settlement of transactions related to the

purchase or sale securities. The BBE deals with counterparties of

recognized reputation and financial standing, duly approved by

the shareholder’s credit committee, therefore reducing settlement

risks. In addition, transactions involving third party institutions are

always confirmed in writing and settled through an accredited

clearing system. For the purchase, sale or transfer of securities, BBE

uses secured e-banking access platforms provided by their main

custodians. In the absence of a secured e-banking access platform,

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an authenticated SWIFT message is mandatory for transactions

with all other third party institutions.

profitaBility risk

BBE maintains sufficient control over its margins and costs in order

to ensure continued profitability. Management is directly involved

in the monitoring of the profit. The maturity schedules of assets

and liabilities are also followed up closely to anticipate the need

to reinvest the excess of liquidity or cover temporary gaps without

jeopardizing the result.

coMpliance risk

Compliance risk is defined as the risk of impairment of the

institution’s integrity leading to loss, damage or disadvantage to

which the BBE might be exposed through a failure to conduct its

business in accordance with applicable laws, rules and standards.

In December 2005, the Board of Directors has approved the

Compliance Charter and Policy to implement the guidelines of the

Circular CSSF 04/155. Since 2007 a full time Compliance Officer

has been appointed in order to further enhance the activities of the

compliance function.

The Bank did not undertake any activities in terms of research and

development.

In accordance with Section XVI of the amended CSSF Circular

06/273 and following BBE’s request, the CSSF has granted its

approval to the total exemption of risk limits with its head office

Banco Bradesco S.A. as well as all subsidiaries in Brazil and the

subsidiaries in New York, USA and Georgetown, Grand Cayman as

from December 2010.

Apart the arrival of Mr. Jefferson Marcon Avelino, Senior Manager

of Bradesco Europa, who will be responsible for the back office

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as a whole, as of February 13th 2012, no significant subsequent

events have occurred during the period from December 31, 2011

to date.

Banco Bradesco Europa S.A. remains committed to strengthening

the relationships with its clients and looks forward to continue

offering products and services of high quality and professional

standards.

Finally, we would like to thank our Managers and Employees

for their dedication and commitment towards Banco Bradesco

Europa’s 2011 performance.

Luxembourg, March 19th, 2012. The Management

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Report on the annual accounts

We have audited the accompanying annual accounts of Banco Bradesco

Europa S.A., which comprise the balance sheet as at December 31,

2011 and the profit and loss account for the year then ended, and

a summary of significant accounting policies and other explanatory

information.

Board of Directors’ responsibility for the annual accounts

The Board of Directors is responsible for the preparation and fair

presentation of these annual accounts in accordance with Luxembourg

legal and regulatory requirements relating to the preparation of the

annual accounts, and for such internal control as the Board of Directors

determines is necessary to enable the preparation of annual accounts

that are free from material misstatement, whether due to fraud or

error.

Responsibility of the Réviseur d’Entreprises agréé

Our responsibility is to express an opinion on these annual accounts

based on our audit. We conducted our audit in accordance with

International Standards on Auditing as adopted for Luxembourg by

the Commission de Surveillance du Secteur Financier. Those standards

require that we comply with ethical requirements and plan and perform

the audit to obtain reasonable assurance about whether the annual

accounts are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about

reportauditor’s

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the amounts and disclosures in the annual accounts. The procedures

selected depend on the judgment of the Réviseur d’Entreprises agréé,

including the assessment of the risks of material misstatement of the

annual accounts, whether due to fraud or error. In making those risk

assessments, the Réviseur d’Entreprises agréé considers internal control

relevant to the entity’s preparation and fair presentation of the annual

accounts 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 entity’s internal control. An audit also

includes evaluating the appropriateness of accounting policies used

and the reasonableness of accounting estimates made by the Board of

Directors, as well as evaluating the overall presentation of the annual

accounts.

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 annual accounts give a true and fair view of the

financial position of Banco Bradesco Europa S.A. as of December 31,

2011, and of the results of its operations for the year then ended

in accordance with Luxembourg legal and regulatory requirements

relating to the preparation of the annual accounts.

Report on other legal and regulatory requirements

The management report, which is the responsibility of the Board of

Directors, is consistent with the annual accounts.

Luxembourg, March 19, 2012 KPMG Luxembourg S.à r.l.

Cabinet de révision agréé

S. Chambourdon

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as at deceMBer 31,2011Balance sheet

assets Notes 2011USD

2010USD

Cash in hand, balances with central banks and post office banks

3, 4 114.316.772 34.147

Loans and advances to credit institutions: 3, 11 630.027.866 394.708.822

a) repayable on demand 58.111.070 236.314.225

b) other loans and advances 5 571.916.796 158.394.597

Loans and advances to customers 3, 6 1.155.571.019 575.909.385

Debt securities and other fixed-income transferable securities:

3, 7, 8 359.532 351.851

issued by other borrowers 253.641 351.851

Intangible assets 10 415.400 904.228

Tangible assets 10 815.622 891.592

Other assets 3, 9 3.499.059 95.985

Prepayments and accrued income 17.668.651 8.954.512

TOTAL ASSETS 12 1.922.673.921 981.850.522

The accompanying notes form an integral part of these annual accounts.

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liaBilities Notes 2011USD

2010USD

Amounts owed to credit institutions 3, 18 1.129.427.460 592.515.067


b) with agreed maturity dates or periods of notice 13 1.056.623.911 495.045.299

Amounts owed to customers 3, 18 424.717.456 183.899.171


b) with agreed maturity dates or periods of notice 14 304.183.482 55.716.835

Other liabilities 15 312.828 331.746

Accruals and deferred income 10.343.481 3.376.618

Provisions 13.366.382 10.922.735

a) provisions for taxation 28 11.093.986 8.613.209

b) other provisions 30 2.272.396 2.309.526

Subscribed capital 16 268.350.000 68.350.000

Reserves 17 52.455.184 108.052.867

Profit for the financial year 23.701.130 14.402.318

TOTAL LIABILITIES 19 1.922.673.921 981.850.522

off Balance sheet iteMs

Contingent liabilities 20 85.521.163 51.734.093

of which:

guarantees and assets pledged as collateral security

85.521.163 51.734.093

Commitments 21 200.869.075 43.677.585

Fiduciary operations 23 60.000.000 60.000.000


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year ended deceMBer 31,2011profit and loss account

charges Notes 2011USD

2010USD

Interest payable and similar charges 14.985.477 3.945.810

Commissions payable 1.625.342 575.500

General administrative expenses 9.756.580 7.248.012

a) staff costs 24, 25 4.832.277 3.539.185

of which:

– wages and salaries 4.450.329 3.264.297

– social security costs 381.948 274.888

of which:

– social security costs relating to pensions 244.937 163.176

b) other administrative expenses 4.924.303 3.708.827

Value adjustments in respect of intangible and tangible assets 787.414 701.122

Other operating charges 26 584.701 238.734

Value adjustments in respect of loans and advances and provisions for contingent liabilities and for commitments 1.879.771 694.060

Tax on profit on ordinary activities 28 4.577.461 1.624.044

Profit on ordinary activities after tax 22.752.541 11.045.334

Net extraordinary profit after tax 27 948.589 3.356.984

Other taxes not shown under the preceding items 28 – –

PROFIT FOR THE FINANCIAL YEAR 23.701.130 14.402.318

TOTAL CHARGES 57.897.876 29.429.601


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incoMe Notes 2011USD

2010USD

Interest receivable and similar income 29 43.851.434 15.450.930

of which:

that arising from debt securities and other fixed-income transferable securities 24.312 1.157

Commissions receivable 29 7.403.650 4.909.798

Net profit on financial operations 29 4.076.687 4.989.796

Value re-adjustments in respect of loans and advances and provisions for contingent liabilities and for commitments 881.933 335.527

Other operating income 26 735.583 386.390

Extraordinary income 27 948.589 3.357.160

TOTAL INCOME 57.897.876 29.429.601

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to the accountsnotes

note 1 - general

1.1. Corporate matters

Banco Bradesco Luxembourg S.A. was incorporated in Luxembourg as a

“société anonyme” on December 17, 1981.

During an extraordinary general meeting held on October 4, 2010,

Banco Bradesco Luxembourg S.A. changed its corporate name to

Banco Bradesco Europa S.A. (the “Bank”). It was also decided to

transfer the legal domicile of the Bank to 29, Avenue de la Porte Neuve

L-2227 Luxembourg with effect October 18, 2010.

The business policy and valuation principles, unless prescribed by

Luxembourg rules and regulations, are determined and monitored by

the Board of Directors.

1.2. Parent undertaking

The Bank is included in the consolidated accounts of Banco Bradesco

S.A.. The consolidated accounts may be obtained from the registered

office of the parent company at Banco Bradesco S.A., Cidade de

Deus CEP 06029-900, Osasco, São Paulo, Brazil, or alternatively on its

internet site: www.bradesco.com.br.

1.3. Nature of the Bank‘s business

The object of the Bank is to undertake all banking and financial

operations of whatever kind.

The Bank may also undertake directly, by way of participation or by any

other means, all commercial, industrial or other operations, including

real estate transactions, which directly or indirectly relate to this

objective.

The Bank‘s major activities are private banking, trade financing,

corporate lending and interbank operations.

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1.4. Annual accounts

The Bank prepares its annual accounts in United States Dollars (USD),

the currency in which the capital is expressed.

The Bank‘s accounting year coincides with the calendar year.

note 2 - suMMary of significant accounting policies

The Bank prepares its annual accounts in accordance with the laws

and regulations in force in the Grand-Duchy of Luxembourg and the

accounting principles chosen are those commonly referred to as LUX

GAAP, encompassing the principles set forth in the amended law of

June 17, 1992 and the related instructions and circulars of the CSSF.

The Bank has not chosen to fully use the IAS/IFRS accounting standards,

nor any of the IFRS options foreseen in the law of March 16, 2006.

The following significant accounting policies are applied:

2.1. The date of recording of transactions in the balance sheet

Assets and liabilities are recognized in the balance sheet according to

when the amounts concerned become cleared funds, that is, their date

of effective transfer.

2.2. Foreign currencies

The Bank maintains a multi-currency accounting system, which records

all transactions in the currency or currencies of the transaction on the

day on which the contract is concluded.

Revenues and expenses in foreign currencies are translated into USD

daily at the prevailing exchange rates.

Tangible and intangible assets in foreign currencies, not covered in

either the spot or forward markets, are translated into USD at the rate

of exchange prevailing at the date of their acquisition. All other assets

and liabilities are converted into USD at the average of the buy and sell

spot rates applicable at the balance sheet date. Both realized profits

and losses arising on revaluation are accounted for in the profit and

loss account for the year.

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At year-end, all unsettled forward transactions are translated into USD

at the forward rate applicable for the remaining term at the balance

sheet date.

Results on open forward transactions linked to spot transactions and

on swap transactions are accrued at the balance sheet date. The

revaluation of these transactions does not affect the result for the

financial year.

2.3. Loans and advances

Loans and advances are stated at their acquisition price. The policy

of the Bank is to establish specific value adjustments in respect of

doubtful debts, as deemed appropriate.

These value adjustments are deducted from the asset items to which

they relate and shall not be maintained if the reasons for which they

were recorded no longer exist.

Additional details regarding the value adjustments can be found in the

management report.

2.4. Lump sum provision for risk exposures

A general reserve for potential risks on balance sheet and off balance

sheet items is booked. This tax-deductible provision is deducted from

the corresponding assets. The lump-sum provision calculated on off

balance sheet items is booked under the item “Provision for liabilities

and charges: other provisions”.

As at December 31, 2011, the Bank has not recorded an additional

lump sum provision compared to 2010.

2.5. Debt securities and other fixed-income securities

The Bank has divided its portfolio of fixed-income securities into three

categories, whose principal characteristics are the following:

– an investment portfolio of financial fixed assets, which are intended

to be used on a continuing basis in the Bank‘s activities;

– a trading portfolio of securities purchased with the intention of

resale in the short term; and

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– a structural portfolio of securities, which do not fall within either of

the two other categories.

Fixed-income securities are valued as follows:

Investment portfolio

Fixed-income securities included in the Bank‘s investment portfolio

are stated at purchase price. A value adjustment is made when the

market value at the balance sheet date is lower than the purchase

price. This adjustment is made when the Board of Directors considers

the depreciation as durable. As of December 31, 2011 and 2010, the

Bank did not hold such portfolio.

Trading portfolio

Fixed-income securities included in the Bank‘s trading portfolio are

stated at the lower of cost or market value adjusted by the prorata

premium or discount if applicable. The Bank records the value

adjustment, corresponding to the negative difference between the

market value and the acquisition cost.

Structural portfolio

Fixed-income securities included in the Bank’s structural portfolio are

stated at the lower of cost or market value adjusted by the prorata

premium or discount if applicable. The Bank records the value

adjustment, corresponding to the negative difference between the

market value and the acquisition cost. As of December 31, 2011 and

2010, the Bank did not hold such portfolio.

2.6. Tangible and intangible assets

Tangible and intangible assets are recorded at purchase price VAT

excluded since the beginning of the year ended as of December 31,

2011. Formerly those assets were recorded including VAT. The Board

of Directors estimated that this change in accounting policy does not

have a significant impact on the annual accounts of the Bank.

The value of tangible and intangible assets with limited useful economic

lives is reduced by value adjustments calculated to write off the value

24


of such assets systematically over their expected useful economic lives.

2.7. Taxes

Taxes are accounted for on an accrual basis, and not in the year they are paid.

2.8. Taxation - exchange difference

Under Luxembourg fiscal regulations, the Bank‘s fiscal balance sheet and results of operations are

required to be expressed in Euro. The earnings of the Bank as determined for fiscal purposes can differ

substantially from earnings reported for accounting purposes as a result of unrealized profits or losses

on the translation of the Bank‘s equity into Euro for fiscal purposes. For the period from incorporation

up to the current year end, the unrealized gains and losses on exchange on the investment of the Bank‘s

equity, due to the overall decline in value of the US Dollar against the Euro, have given rise to a negative

cumulative neutralisation position to be carried forward.

2.9. Derivative Instruments

The Bank’s commitments deriving from derivatives financial instruments are recorded on the transaction

date as off-balance sheet items.

No individual valuation is performed in those cases where a financial instrument specifically covers an

asset or liability and an economic unity is established.

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note 3 - financial instruMent disclosures

Analysis of financial instruments - Primary non-trading instruments - 2011 (expressed in USD)

Primary non-trading instruments (at carrying amount)

Instrument class ≤ 3 months > 3 months > 1 year > 5 years Total

(Assets) ≤ 1 year ≤ 5 years

Cash, balances with

central banks and

post office 114.316.772 – – – 114.316.772

Loans and advances

to credit institutions 444.756.161 47.618.786 137.472.643 180.276 630.027.866

Loans and advances

to customers 330.228.232 329.127.171 483.232.860 12.982.756 1.155.571.019

Debt securities and

other fixed income

transferable securities – – – 359.532 (*) 359.532

Other assets 3.499.059 – – – 3.499.059

Total financial assets 892.800.224 376.745.957 620.705.503 13.522.564 1.903.774.248

Non-financial liabilities (no maturity) 18.899.673

Total assets 1.922.673.921


(Liabilities) ≤ 1 year ≤ 5 years

Amounts owed

to credit Institutions 678.250.358 184.513.186 252.765.869 13.898.047 1.129.427.460

Amounts owed

to customers 265.406.836 60.034.114 99.276.506 – 424.717.456

Total financial liabilities 943.657.194 244.547.300 352.042.375 13.898.047 1.554.144.916


Total liabilities 1.922.673.921

* As at December 31, 2011, the fair value of the debt securities and other fixed income transferable securities amounted to USD 382.287.

26


Analysis of financial instruments - Primary non-trading instruments - 2010 (expressed in USD)

Primary non-trading instruments (at carrying amount)


(Assets) ≤ 1 year ≤ 5 years

Cash, balances with

central banks and

post office 34.147 – – – 34.147

Loans and advances

to credit institutions 354.214.219 24.061.706 16.432.897 – 394.708.822

Loans and advances

to customers 115.110.340 244.120.812 199.513.830 17.164.403 575.909.385

Debt securities and

other fixed income

transferable securities – – – 351.851 (*) 351.851

Other assets 95.985 – – – 95.985

Total financial assets 469.454.691 268.182.518 215.946.727 17.516.254 971.100.190

Non-financial assets (no maturity) 10.750.332

Total assets 981.850.522


(Liabilities) ≤ 1 year ≤ 5 years

Amounts owed

to credit Institutions 303.552.639 166.892.255 105.866.692 16.203.481 592.515.067

Amounts owed

to customers 159.448.027 24.071.144 380.000 – 183.899.171

Total financial liabilities 463.000.666 190.963.399 106.246.692 16.203.481 776.414.238


Total liabilities 981.850.522

* As at December 31, 2010, the fair value of the debt securities and other fixed income transferable securities amounted to USD 365.150.

27

Analysis of financial instruments – Derivative non-trading instruments – 2011 and 2010

As at December 31, 2011, the Bank’s OTC derivative non-trading instruments consisted of the following

transactions: Notional Repayment Effective Maturity Fair market value Fair market value

amount date in USD 2011 in USD 2010

Foreign Exchange swap transactions (FX):

FX1 EUR 25.000.000 At maturity 05/12/2011 04/01/2012 (8.052) n.a.

Interest Rate Swap Transactions (IRS):

IRS1 USD 10.000.000 Semi-annual 15/09/2010 08/03/2012 (10.911) (18.325)

IRS2 USD 1.000.000 Semi-annual 27/09/2010 16/03/2012 (590) (2.290)

IRS3 EUR 500.000 Semi-annual 18/06/2008 30/05/2012 (6.794) (24.128)

IRS4 USD 2.000.000 Semi-annual 09/08/2011 24/06/2015 (2.758) n.a.

As at December 31, 2010, the Bank’s OTC derivative non-trading instruments consisted of the following

transactions: Notional Repayment Effective Maturity Fair market value Fair market value

amount date in USD 2010 in USD 2009


FX1 EUR 113.050 At maturity 09/06/2006 16/05/2011 3 875 (7.368)



FX4 EUR 22.500.000 At maturity 28/12/2010 20/01/2011 (607) n.a.








Forward Rate Agreement (FRA):

FRA USD 8.133.946 At maturity 19/11/2010 08/01/2011 (2.508) n.a.

28


Credit risk exposure

Credit risk for financial instruments as at December 31, 2011 can be analyzed as follows: Maturity Notional amount Weighting Risk-equivalent

USD amount USD

(1) (2) (3) = (1) x (2)


FX1 04/01/2012 32.347.510 2.00% 646.950


IRS1 08/03/2012 10.000.000 1.00% 100.000

IRS2 16/03/2012 1.000.000 0.50% 5.000

IRS3 30/05/2012 646.950 4.00% 25.878

IRS4 24/06/2015 2.000.000 3.00% 60.000

Total 837.828

Credit risk for financial instruments as at December 31, 2010 can be analyzed as follows: Maturity Notional amount Weighting Risk-equivalent

USD amount USD

(1) (2) (3) = (1) x (2)


FX1 16/05/2011 153.951 14.00% 21.553

FX2 02/02/2011 19.950.000 2.00% 399.000

FX3 28/01/2011 39.660.000 2.00% 793.200

FX4 20/01/2011 29.553.750 2.00% 591.075


IRS1 11/03/2011 521.319 0.50% 2.607

IRS2 30/05/2012 668.100 1.00% 6.681

IRS3 26/08/2011 721.548 0.50% 3.608

IRS4 29/12/2011 15.000.000 0.50% 75.000

IRS5 08/03/2012 10.000.000 1.00% 100.000

IRS6 16/03/2012 2.000.000 1.00% 20.000

Forward Rate Agreement (FRA):

FRA 08/01/2011 8.133.946 0.50% 40.669

Total 2.053.393

29

The credit risk exposure as at December 31, 2011 can be analyzed as follows:

Total replacement cost of which secured Net risk exposure

USD USD USD

Primary non-trading instruments

– Cash in hand balances with central bank

and post office 114.316.772 – 114.316.772

– Loans and advances to credit institutions 630.027.866 – 630.027.866

– Loans and advances to customers 1.155.571.019 (326.421.836) 829.149.183

– Debt securities and other fixed-income

transferable securities 359.532 – 359.532

– Other assets 3.499.059 – 3.499.059

Total 1.903.774.248 (326.421.836) 1.577.352.412

The credit risk exposure as at December 31, 2010 can be analyzed as follows:

Total replacement cost of which secured Net risk exposure

USD USD USD

Primary non-trading instruments

– Cash in hand balances with central bank

and post office 34.147 – 34.147

– Loans and advances to credit institutions 394.708.822 – 394.708.822

– Loans and advances to customers 575.909.385 88.059.065 487.850.320

– Debt securities and other fixed-income

transferable securities 351.851 – 351.851

– Other assets 95.985 – 95.985

Total 971.100.190 88.059.065 883.041.125

30


Total on and off balance sheet economic sector credit risk concentrations are presented in the table

below: 2011 2010

USD % USD %

Other banks 795.227.043 36,37 446.540.592 41,87

Corporate Customers 1.359.105.669 62,15 617.249.695 57,88

Private banking customers 32.332.715 1,48 2.625.528 0,25

Total 2.186.665.427 100,00 1.066.415.884 100,00

The increase of the exposure on private banking customer is mainly due to an increase of Secured Loans

granted to customers for USD 30.810.820 (2010: USD 731.819).

The Corporate customers exposure is recording a large increase reflecting the development of the

volume of activities since the second semester of 2010.

Total geographic sector risk concentrations, both on and off balance sheet, are presented in the table

below: 2011 2010

USD % USD %

Luxembourg 205.772.963 9,41 237.053.883 22,23

Zone A 758.600.904 34,69 139.499.994 13,08

Zone B 1.222.291.560 55,90 689.862.007 64,69

Total 2.186.665.427 100,00 1.066.415.884 100,00

Geographic risk for Zone B included USD 945.609.419 of Brazilian risk (2010: USD 571.665.202).

From that amount, USD 898.429.377 relates to trade finance transactions (2010: USD 550.200.483).

note 4 - cash in hand, Balances with central Banks and post office Banks

In accordance with the requirements of the European Central Bank, the Central Bank of Luxembourg

implemented, effective January 1, 1999, a system of mandatory minimum reserves which applies to

all Luxembourg credit institutions. The Bank has fulfilled its minimum reserve requirement of EUR

499.164.751 with the Central Bank by maintaining a high amount of EUR 89.194.125 during six days

in December 2011. The balance of USD 114.312.329 at year end is made up of the current account and

of an over-night deposit not related to reserve requirements.

31

note 5 - loans and advances to credit institutions

Loans and advances to credit institutions other than those repayable on demand may be analysed

according to their remaining maturity as follows:

2011 2010

USD USD

Not more than three months 386.645.091 117.899.994

More than three months but not

more than one year 47.618.786 24.061.706

More than one year but not

more than five years 137.472.643 16.432.897

More than five years 180.276 –

571.916.796 158.394.597

note 6 - loans and advances to custoMers

Loans and advances to customers may be analysed according to their remaining maturity as follows:

2011 2010

USD USD


More than three months but not

more than one year 329.127.171 244.120.812

More than one year but not

more than five years 483.232.860 199.513.830

More than five years 12.982.756 17.164.403

1.155.571.019 575.909.385

The increase of the credit activity from 2010 to 2011 is mainly due to an increase in trade finance

transactions to Brazilian customers and trade financing loans with European corporate customers.

32


Loans and advances to customers may be analysed in considering the following deductions:

2011 2010

USD USD

Gross amount granted to Customers 1.158.537.587 578.077.474

Doubtful provision (1.786.140) (1.023.988)

Lump sum provision (1.180.428) (1.144.101)

1.155.571.019 575.909.385

note 7 - transferaBle securities

Transferable securities shown under “Debt securities and other fixed-income transferable securities“

amount to USD 359.532 (2010: USD.351.851). These transferable securities do not include unlisted

securities. They are considered by the Bank as Trading Portfolio and valued at lower of cost or market.

Their market value as at December 31, 2011 amounted to USD 382.287 (2010: USD 365.150).

note 8 - deBt securities and other fixed-incoMe transferaBle securities

Transferable securities shown under “Debt securities and other fixed-income transferable securities”

may be analysed according to their remaining maturity as follows:

2011 2010

USD USD

More than five years 359.532 351.851

359.532 351.851

note 9 - other assets

These items are detailed as follows:

2011 2010

USD USD

Short-term receivables 3.256.387 85.171

Others 242.672 10.814

3.499.059 95.985

Short term receivables account is mainly made up of USD 3.251.806 referring to Invoices paid in the

scope of the project Flexcube and expecting the finalisation of the implementation and agreement of all

counterparties involved into this project.

33

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34


note 11 - related party Balances - assets

The following balances with affiliated undertakings are included in

Assets:

2011 2010

USD USD

Loans and advances

to credit institutions 527.769.947 199.939.926

Loans and advances to credit institutions consist of current accounts,

deposits and loans held with the Banco Bradesco Group. The figures

as at December 31, 2011 do not include accrued interest amounting

to USD 766.758 (2010: USD 335.039).

note 12 - foreign currency assets

As at December 31, 2011 the aggregate amount of the Bank‘s

assets denominated in foreign currencies, translated into USD, is

USD 632.487.289 (2010: USD 337.633.103).

note 13 - aMounts owed to credit institutions with

agreed Maturity dates or periods of notice

Amounts owed to credit institutions with agreed maturity dates

or periods of notice may be analysed according to their remaining

maturity as follows:

2011 2010

USD USD


More than three months but

not more than one year 184.513.186 166.892.256

More than one year but

not more than five years 252.765.869 105.866.692

More than five years 13.898.047 16.203.481

1.056.623.911 495.045.299

35

The increase in amounts owed to credit institutions with agreed maturity dates or period of notice

is correlated with the increase generated by the Bank’s trade finance activities. Loans granted by the

Bank in the context of those transactions are mainly funded by Banco Bradesco Cayman with the same

maturity date and same period.

note 14 - aMounts owed to custoMers

Amounts owed to customers with agreed maturity dates or periods of notice may be analysed according

to their remaining maturity as follows:

2011 2010

USD USD


More than three months but

not more than one year 60.034.114 24.071.144

More than one year

but not more than five years 99.276.506 380.000

304.183.482 55.716.835

note 15 - other liaBilities

These items are detailed as follows:

2011 2010

USD USD

Preferential creditors 278.609 224.441

Sundry creditors 34.219 107.305

312.828 331.746

note 16 - suBscriBed capital

Following the extraordinary meeting of January 17, 2011, it has been decided to increase the share

capital from USD 68.350.000 to USD 138.350.000 by incorporation of USD 70.000.000 from free

reserves. It has also been decided to increase the share capital by USD 130.000.000 from 138.350.000

to USD 268.350.000 by the issuance of 1.785 new shares without nominal value.

As at December 31, 2011, the bank’s authorised, subscribed an paid-up capital amounts to

USD 268.350.000 (2010: USD 68.350.000), which is solely comprised of ordinary share capital,

represented by 3.685 shares without nominal value (share’s par value USD 72.822,25).

36


note 17 - reserves

Reserves include:

17.1. Legal reserve

Under Luxembourg law, the Bank appropriated to a legal reserve an amount equivalent to at least 5%

of the annual net profit until such reserve is equal to 10% of the share capital. Distribution of the legal

reserve is restricted.

Following the extraordinary general meeting held on January 17, 2011, it has been decided to transfer

from free reserve to legal reserve an amount of USD 20.000.000 consequence of the capital increase.

17.2. Free reserves

The free reserve represents profits of prior years that have been appropriated by the Annual General

Meeting of shareholders to a specific reserve referred to as “free reserves”. The Annual General Meeting

may approve the distribution of this reserve.

17.3. Net Wealth Tax reserve

In accordance with the tax law in force since January 1, 2002, the Bank reduces its Net Wealth

Tax (“NWT”) burden by crediting it on the amount of the Corporate Income Tax (“CIT”). In

order to comply with the tax law, the Bank will allocate under non-distributable reserves

(item “Net Wealth Tax reserve”) an amount that corresponds to five times the amount of the

reduction of the Net Wealth Tax for the years 2008, 2009, 2010 and 2011. This reserve will be

non-distributable for a period of five years from the year following the one during which the Net Wealth

Tax was reduced.

2011 2010

USD USD

2005 – 3.285.000

2008 3.827.418 –

2009 5.175.742 –

2010 4.977.285 –

13.980.445 3.285.000

37

17.4. Changes in shareholder’s equity

The movements on shareholder’s equity of the Bank is summarised

below:

Legal

Reserve

USD

Free

Reserves

USD

Net

Wealth

Tax Reserve

USD

Profit

Brought

Forward

USD

Total

USD

Balance at

January 1, 2011 6.835.000 97.932.866 3.285.000 – 108.052.866

Profit for the year ended

December 31, 2010 – – – 14.402.318 14.402.318

Appropriation of profit – 14.402.318 – (14.402.318) –

Transfer from free reserves

to net wealth tax reserve– (13.980.445) 13.980.445 – –

Transfer from net wealth

tax reserve to free reserves– 3.285.000 (3.285.000) –

Transfer from free reserve

to legal reserve20.000.000 (20.000.000) – –

Transfer from free reserve

to Capital– (70.000.000) – – (70.000.000)

Balance at

December 31, 2011 26.835.000 11.639.739 13.980.445 – 52.455.184

38


note 18 - related party Balances - liaBilities

As at December 31, 2011, the following balances with affiliated

undertakings are included in Liabilities:

2011 2010

USD USD

Amounts owed to credit institutions 848.491.736 439.914.258

Amounts owed to customers 228.959.232 24.174

1.077.450.968 439.938.432

Accrued interest amounting to USD 3.248.830 (2010: USD.637.514)

are not included in the above amounts.

note 19 - foreign currency liaBilities

As at December 31, 2011, the aggregate amounts of the Bank‘s

liabilities denominated in foreign currencies, translated into USD, is

USD 633.499.879 (2010: USD 338.267.703).

note 20 - contingent liaBilities

2011 2010

USD USD

Guarantees and other direct

substitutes for credit 85.521.163 51.734.093

note 21 - coMMitMents

2011 2010

USD USD

Confirmed credits, not used 200.869.075 43.677.585

Confirmed credits not used as at December 31, 2011 consist in the

unused balance of facilities the Bank entered giving its commitment to

fund up to USD 405.363.854 (2010 USD 52.814.271).

As at December 31, 2011, the Bank had disbursed USD 204.494.779

(2010: USD 9.136.686) under those committed credit facilities.

39

In 2008, the Bank entered into a 5 year contract with a Luxembourg

PFS in order to structure its data recovery centre. The finance lease

contract amounted to EUR 754.056 encompassing premises, hardware,

software, communication links and all other equipment required to

build the complete infra-structure of the recovery site.

The financing of the contract was done by a leasing company based in

Luxembourg. The reimbursement of the contract will be made through

monthly payments of EUR 14.767 for the duration of 60 months.

Payments made in 2011 amounted to EUR 177.204. Total future lease

payments with regard to this non-cancellable finance lease therefore

amount to EUR 236.274. All amounts mentioned are inclusive of VAT.

The Bank has commitments under operating lease contracts for

buildings used by it in the normal course of business. Since October

31, 2009 the contract became renegotiable tacitly year to year.

Total future lease payments under its current non-cancellable rental

agreement, translated to USD at the year-end exchange rate, can be

analysed as follows:

2011 2010

USD USD

Not more than one year 630.690 597.035

Later than one year and

not more than five years 2.522.760 2.605.246

More than five years 525.575 542.759

3.679.025 3.745.040

note 22 - operations linked to currency exchange rates

In December 2011, the Bank entered into one forward foreign exchange

transaction in the form of EUR/USD swap for a short period of thirty days.

This operation is made in order to swap Euro received from our Cayman

affiliated against U.S. Dollars delivered to our mother company.

In December 2011, the Bank had no Forward Rate Agreement recorded

in its books.

40


note 23 - investMent ManageMent services and

underwriting functions

Management services provided by the Bank consist mainly in custody

and administration of transferable securities, portfolio management

on a non-discretionary basis, advice, fiduciary representation and

agency functions.

note 24 - staff nuMBers

The average number of persons employed during the financial year by

the Bank is as follows: 2011 2010

Number Number

Senior management 2,5 3,0

Middle management 8,5 4,5

Employees 25,5 15,0

36,5 22,5

The total number of employees at year end 2011 and 2010 is as

follows: 31/12/2011 31/12/2010

Number Number

Senior management 2 3

Middle management 9 5

Employees 28 20

39 28

41

note 25 - ManageMent reMuneration

The Bank has paid emoluments for the financial year to members

of senior management in respect of their responsibilities, but it has

not entered into commitments in respect of extra-legal retirement

pensions: Emoluments Emoluments

2011 2010

USD USD

Senior management 1.407.246 1.416.656

No loans or advances to or on behalf of Senior Management or

members of the Board of Directors have been granted by the Bank. As

at December 31, 2011, with the exception of outstanding guarantees

for the rent of residential properties issued on behalf of three members

of the Senior Management and Middle-Management amounting to

EUR 24.085 (2010: EUR 26.137), no other commitments are granted

to Management or members of the Board of Directors.

note 26 – other operating charges and other operating

incoMe

Other operating charge are detailed as follows: 2011 2010

USD USD

Dotation to the AGDL provision 185.544 237.277

Other 399.157 1.457

584.701 238.734

The other operating charges out of AGDL provision are made up

of legal labour contingency expenses for USD 294.785 and sundry

expenses (invoices) paid in 2011 and referring to the previous year for

USD 84.188.

42


Other operating income is detailed as follows: 2011 2010

USD USD

AGDL Reimbursement 41.928 80.178

VAT Reimbursement 425.645 174.885

Other 268.010 131.327

735.583 386.390

note 27 – extraordinary profit

Extraordinary profit in 2011 recorded for USD 948.589, refers mainly

to the value re-adjustment of fiscal provisions notably the NWT 2008

for USD 805.816 and IRC 2008 for USD 142.712.

note 28 – taxes

In 2011, the Bank has recorded provisions for taxation amounting to

USD 4.577.461 (2010: USD 8.613.209).

The Bank is liable for taxes on income, capital and net assets.

In relation with the Fiscal Convention between Brazil and the Grand

Duchy of Luxembourg, the Bank has the opportunity to decrease its

tax to pay in using the fiscal deductions provided by this agreement.

The Bank did not receive in 2011 any assessments from the Luxembourg

tax authorities.

Other taxes refer to the Net Wealth Tax and VAT due by the Bank.

note 29 – geographical analysis of incoMe

The Bank’s income is derived mainly from transactions with Brazilian

counterparties.

The main income comes from the interest received on Loans (+183%)

and Commissions linked to some Loans (+50%).

The net profit on financial operations between 2010 and 2011 shows

a low decrease (-18%), due to a decrease of the fixed income securities

concluded by the Bank in 2011 with its clients and a decrease of the

customers’ portfolio positions. This decrease is also resulting from the

43

calculation of custody commissions on securities revaluated on daily

basis. The prices of the securities (after revaluations) were recorded

lower in 2011 than in 2010.

note 30 - deposit guarantee scheMe

On September 25, 1989, all credit institutions in the Luxembourg

banking sector became members of the non-profit making association

“Association pour la Garantie des Dépôts, Luxembourg“ (“AGDL“).

In accordance with the law of April 5, 1993 as amended by the law

of June 11, 1997, the sole object of the AGDL is the establishment of

a mutual guarantee scheme covering deposits made by customers of

member credit institutions (“the Guarantee“). The customers covered

by the Guarantee include all depositors who are physical persons,

whatever their nationality or country of residence. Also covered by the

Guarantee are small companies constituted under the law of a Member

State of the European Union, which size is such that they would be

permitted to draw up abbreviated accounts pursuant to Article 35

of the law of December 19, 2002 on the register of commerce and

companies and the accounting and annual accounts of undertakings.

Following the art.8 of the Statutes adopted by Extraordinary General

meeting of AGDL on February 8, 2009, with respect to each member,

the Guarantee is limited to a maximum amount per depositor of EUR

100.000 or its foreign currency equivalent. No depositor can receive

more than this sum, regardless of the number of accounts or deposits

held in the sole or joint name of the depositor with the same credit

institution. The law of July 27, 2000 stipulates that banks must also

belong to an investment guarantee scheme. This additional guarantee

covers the reimbursement of claims resulting from investment

transactions up to the amount of EUR 20.000.

The total amount of the Guarantees, which will in no case exceed

EUR 120.000 per customer (EUR 100.000 deposit guarantee and EUR

20.000 investor compensation), represents an absolute figure and

cannot be increased by any interest, charges or any other amount.

44


As at December 31, 2011, the Bank has a cumulative provision for an

amount of USD 1.847.718 (2010: USD 1.731.747), in recognition of

its potential liabilities under the Guarantee within the limits set out in

the Grand Ducal Regulation of December 21, 1991 enacting Article

167§1(5) of the income tax law of December 4, 1967.

In 2011 a total amount of EUR 29.375 was reimbursed to the Bank

in relation with the restructuring of one of the financial institutions

affected by the suspension of payments under consideration. The

amount has been recorded under the caption “Other operating

income”.

The remaining AGDL provision at December 31, 2011 is sufficient to

cover this amount and next potential disbursements.

note 31 – fees of the independent auditors

Following the resolution of the Board of Directors dated April 19,

2010 PricewaterhouseCoopers (“PWC”) has been appointed to act as

external auditors for the purpose of the statutory audit of the annual

accounts of the Bank.

In 2011, KPMG Luxembourg S.à r.l. has been appointed to act as

external auditors for the purpose of the statutory audit of the annual

accounts of the Bank.

The amounts invoiced or accrued for services provided by the

independent auditor of the Bank were as follows:

2011 2010

USD USD

Audit fees (PWC) 72.020 169.183

Audit fees KPMG 144.917 –

Other assurance services (PWC) – 15.898

Other assurance services KPMG 10.351 –

Tax fees (PWC) 62.100 17.289

Other fees (PWC) 18.820 31.297

308.208 233.667

Banco Bradesco Europa S.A.29, Avenue de la Porte-Neuve L-2227 LuxembourgTéléphone: +352 25 41 31 Téléfax: +352 25 41 39S.W.I.F.T. code: BBDE LU LL

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Credit / Photos: Egberto Nogueira · Imprimerie Fr. Faber

Documents

Annual Report 2011 - bradescori.com.br · 4 ANNUAL REPORT - 2011 report ManageMent Banco Bradesco Europa S.A., BBE, formerly Banco Bradesco Luxembourg S.A., presents to its stakeholders