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1H07 Earnings Results

Banco Bradesco's 2Q07 earnings report highlights a continued growth in net income, with a focus on insurance, private pension plans, and savings bonds. The bank also saw an improvement in efficiency and a significant increase in total assets and stockholders' equity. This report provides detailed financial information and analysis.

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1H07 Earnings Results

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  1. 1H07 Earnings Results

  2. This presentation may contain forward-looking statements. Such statements are not statements of historical facts and reflect the beliefs and expectations of the Company's management. The words "anticipates”, "believes”, "estimates”, "expects”, "forecasts”, "plans”, "predicts”, "projects”, "targets" and similar words are intended to identify these statements, which necessarily involve known and unknown risks and uncertainties. Known risks and uncertainties include but are not limited to the impact of competitive services and pricing market acceptance of services, service transactions by the Company and its competitors, regulatory approval, currency fluctuations, changes in service mix offered, and other risks described in the Company's registration statement and other Securities and Exchange Commission filings. Forward-looking statements speak only as of the date they are made and Banco Bradesco does not undertake any obligation to update them in light of new information or future developments.

  3. Highlights • Net Income: R$ 4.0 billion, of which R$ 1.2 billion in Insurance, Private Pension Plans and Savings Bonds (14th quarter of consecutive growth) • ROAE*: 43.3% in the 2ndQ07 or 36.3% in the 1stH07 • Total Assets: R$ 290.6 billion (+ 3.1% x 1Q07+24.7% x 1H06) • Stockholders’ Equity: R$ 27.5 billion (+5.7% x 1Q07and +28.2% x 1H06) • Loan Portfolio, Sureties, Guarantees and Credit Cards totaling R$ 130.8 billion (+6.9% x 1Q07 and +22.9% x 1H06) • Efficiency Ratio: 42% (9th consecutive quarter lower than 50%) • Interest on Own Capital paid and provisioned: R$1.4 billion • Taxes and Contribution: R$ 3.6 billion (90% of Net Income) * Excludes Mark-to-Market of Securities Available for Sale recorded directly in the stockholders’ Equity.

  4. 3.62 3.27 3.17 3.18 3.08 3.37* 2.98 44.1% 43.2% EPS, Efficiency and Net Income 42.4% 42.1% 42.1% 42.0% 2,302 R$ Million 1,801 1,705 1,602 1,611 1,620 1,530 3,132 4,007/3,506 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 Net Income Efficiency Ratio Earnings per Share (R$) Accumulated over12 months * Calculated with Adjusted Net Incomes of R$ 3,506 million in 1H07 and R$ 1,801 million in 2Q07.

  5. Net Income R$ Million 2Q07 1Q07 1H07 1H06 Reported Net Income 2,302 1,705 4,007 3,132 Serasa Disinvestment (599) - (599) - Arcelor Disinvestment (354) - (354) - Goodwill Amortization (*) 182 - 182 - Civil Provision 74 - 74 - Fiscal Credit (41) - (41) - Tax Effect 237 - 237 - Subtotal of Extraordinary Events (501) - (501) - Adjusted Net Income 1,801 1,705 3,506 3,132 (*) In 2Q07, basically refers to Credifar (association with Lojas Colombo).

  6. Total Assets and Stockholders’ Equity * ROAE ROAE* (Adjusted) R$ Million Stockholders’ Equity Total Assets 2.9% 2.9% 36.3% 34.3% 32.6% 2.5% 2.5% 31.5% 290,568 281,944 27,515 232,935 26,029 21,461 Jun06 Mar07 Jun07 Jun06 Mar07 Jun07 Total Assets ROAA ROAA (Adjusted) Stockholders’ Equity Basel Ratio 16.5% 16.1% 15.7% 14.7% 4.5% 5.1% 4.3% 4.1% 11.0% 11.6% 11.4% 11.4% 10.6% ** Jun06 Mar07 Jun07 Jun07 Tier I Tier II *Excludes MTM of Securities Available for Sale recorded directly in the Stockholders’ Equity ** Simulation based on Brazilian Central Bank Circular # 3,353, became effective since July 2nd, 2007

  7. Provisions and Unrealized Gains Evolution 181% 4,492 3,877 3,214 2,627 1,822 1,782 1,598 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 R$ Million

  8. Earnings Breakdown 2Q07 1Q07 1H07 1H06 - Fees 28% 29% 29% 25% - Credit 24% 25% 25% 23% - Securities 11% 8% 9% 11% - Funding 6% 7% 6% 8% Banking 69% 69% 69% 67% Insurance 31% 31% 31% 33%

  9. Earnings Variation R$ Million Variation % 2Q07 1Q07 1H07 1H06 Q-o-Q Y-o-Y Net Interest Income 5,704 5,019 10,723 9,925 13.6 8.0 Allowance For Loan Losses (1,344) (1,160) (2,504) (2,054) 15.9 21.9 Gross Intermediation Income 4,360 3,859 8,219 7,871 13.0 4.4 Insurance, Pension Plans and Savings Bonds 116 241 357 355 (51.9) 0.6 25.1 Fee Income 2,609 2,559 5,168 4,131 2.0 Personnel and Administrative Expenses (3,293) (3,000) (6,293) (5,580) 9.8 12.8 Tax Expenses (582) (585) (1,167) (1,041) (0.5) 12.1 Other Operating Income/Expenses (799) (793) (1,592) (1,408) 0.8 13.1 Operating Income 2,411 2,281 4,692 4,328 5.7 8.4 Non-Operating Income (20) - - 5 (3) 2 (615) (573) (1,188) (1,176) 7.3 1.0 IT&SC and Minority Interest ADJUSTED NET INCOME 1,801 1,705 3,506 3,132 5.6 11.9 (+) Extraordinary Events 501 - 501 - - 2,302 1,705 4,007 3,132 35.0 27.9 REPORTED NET INCOME

  10. Adjusted Net Income 16.0 12.3 12.5 11.9 9.3 7.8 R$ Million 8.2 7.5 1,285 10,723 9,925 1,310 5,704 • volume= 1,848 5,019 874 411 9,438 8,615 • spread= (1,025) • volume= 283 4,830 4,608 • spread= (61) 1H06 1H07 1Q07 2Q07 Non Interest Average Selic (%) Interest NIM (%)

  11. Adjusted NII & NIM 8.6 8.3 8.3 8.0 7.8 7.8 7.5 7.3 7.0 7.0 4,830 4,608 4,502 4,549 4,340 4,275 4,230 3,993 3,660 3,247 1Q05 2Q 3Q 4Q 1Q06 2Q 3Q 4Q 1Q07 2Q NII – Interest NIM – Interest (%) R$ Million

  12. Adjusted Net Interest Income R$ Million Variation % 2Q07 1Q07 1H07 1H06 Q-o-Q Y-o-Y - Credit Operations 3,183 3,025 6,208 5,276 5.2 17.7 - Funding 556 548 1,104 1,390 1.5 (20.6) - Insurance 621 542 1,163 1,211 14.6 (4.0) - Securities / Others 470 493 963 738 (4.7) 30.5 Net Interest Income 4,830 4,608 9,438 8,615 4.8 9.6

  13. Credit Operation R$ Million 3,183 3,025 2,951 2,834 2,756 2,478 2,376 2,135 1,984 1,975 1,984 1,866 1,884 1,732 1,740 1,711 1,668 1,611 1,539 1,304 1,199 1,094 1,067 1,050 1,045 867 644 562 467 445 1Q05 2Q 3Q 4Q 1Q06 2Q 3Q 4Q 1Q07 2Q Net Margin Gross Margin Net Allowances * * Allowances for Loan Losses (+) Recoveries (-) Discounts

  14. Loan Portfolio (*) R$ Million Variation % Jun07 Mar07 Jun06 Q-o-Q Y-o-Y Individuals 49,832 46,348 40,867 7.5 21.9 Large Corporates 47,105 45,042 38,695 4.6 21.7 SMEs 33,882 30,965 26,857 9.4 26.2 Total 130,819 122,355 106,419 6.9 22.9 * Includes sureties and guarantees and receivables of credit cards (cash and installments).

  15. Credit Composition – Corporates Variation % Jun07 Mar07 Jun06 Q-o-Q Y-o-Y Working Capital 9,546 8,990 7,340 6.2 30.1 BNDES Onlendings 9,354 8,255 6,995 13.3 33.7 Operations Abroad 7,747 7,163 4,530 8.2 71.0 Overdraft Account 7,428 7,344 5,951 1.1 24.8 Export Financing 6,635 6,350 6,122 4.5 8.4 Credit Card 3,249 3,011 2,613 7.9 24.3 Leasing 3,433 2,990 2,532 14.8 35.6 Automobiles 3,031 2,889 2,820 4.9 7.5 Rural 2,692 2,641 2,427 1.9 10.9 Mortgage 1,193 988 584 20.7 104.3 Sureties and Guarantees 17,065 15,663 13,184 9.0 29.4 Others 9,614 9,723 10,454 (1.1) (8.0) TOTAL 80,987 76,007 65,552 6.6 23.5 R$ Million

  16. Credit Composition - Individuals R$ Million Variation % Jun07 Mar07 Jun06 Q-o-Q Y-o-Y Automobilies 18,192 16,844 15,125 8.0 20.3 Personal Loans 6,872 6,558 6,231 4.8 10.3 Credit Card 6,961 6,115 4,158 13.8 67.4 Payroll Loan 4,489 4,227 3,990 6.2 12.5 BNDES Onlendings 2,970 2,990 2,785 (0.7) 6.6 Rural 2,168 2,000 1,566 8.4 38.4 Overdraft Account 1,939 1,969 1,926 (1.5) 0.7 Mortgage 1,239 1,141 916 8.6 35.3 Sureties and Guarantees 260 306 185 (15.0) 40.5 Others 4,742 4,198 3,985 13.0 19.0 TOTAL 49,832 46,348 40,867 7.5 21.9

  17. Asset Quality % 7.9 7.9 7.7 7.6 7.5 7.2 7.0 6.9 6.8 6.3 6.2 6.2 6.7 6.6 6.5 6.6 6.0 6.5 5.9 6.4 6.3 R$ 1.1 bi 5.8 6.2 5.7 5.6 6.1 5.6 5.5 5.5 5.4 5.1 5.1 5.1 R$ 2.3 bi 4.9 5.0 4.9 4.6 4.6 4.5 4.4 4.4 4.3 4.3 4.2 4.1 3.8 3.8 3.9 4.1 4.3 3.6 3.5 4.0 3.4 3.9 3.8 3.3 3.3 3.7 3.2 3.7 3.2 3.3 3.3 2.9 3.0 2.7 2.7 Mar03 Jun Sep Dec Mar04 Jun Sep Dec Mar05 Jun Sep Dec Mar06 Jun Sep Dec Mar07 Jun Required Allowances / Loan Portfolio Total Allowances/Loan Portfolio 12 Month Charge offs / Loan Portfolio E-H Past Dues / Loan Portfolio

  18. Delinquency Ratio > 90 days % 6.3 6.2 6.2 5.8 5.4 4.8 4.4 4.1 4.1 3.6 3.6 3.6 3.4 3.4 3.1 2.7 2.6 2.6 3.4 3.4 3.3 3.1 3.2 3.1 2.6 2.5 2.4 0.9 0.5 0.5 0.5 0.5 0.2 0.1 0.1 0.1 Jun05 Sep Dec Mar06 Jun Sep Dec Mar07 Jun Individuals SMEs Large Corporates Total

  19. Mortgage Origination 7,336 872 665 669 5,815 5,785 76.9% 77.1% 89.3% 23.1% 22.9% 10.7% 2Q06 1Q07 2Q07 2Q06 1Q07 2Q07 Individuals Builders Annual Origination Portfolio Mix 3,000 2,139 2,000 1,500 2,129 2,432 1,541 38.9% 46.4% 49.1% 2Q 872 61.1% 53.6% 50.9% 1Q 669 2006 2007 2QT06 1Q07 2Q07 Individuals Realized Annual Goal Builders R$ Million Origination (# of Homes)

  20. Vehicles Corporates Individuals 18,297 105 4,473 16,923 4,144 3,898 79 1,442 1,255 1,078 15,173 18,192 48 16,844 3,031 2,889 2,820 15,125 2Q06 1Q07 2Q07 2Q06 1Q07 2Q07 22,770 21,067 1,547 19,071 1,334 1,126 21,223 19,733 17,945 2Q06 1Q07 2Q07 R$ Million TOTAL Leasing Direct Lending

  21. Payroll Loan R$ Million Variation % Jun07 Mar07 Jun06 Q-o-Q Y-o-Y 1,771 44.2 Own origination 1,612 1,228 9.9 1,389 55.0 Acquired from BMC 1,191 896 16.6 1,329 (28.8) Acquired from others 1,424 1,866 (6.7) 12.5 TOTAL 4,489 4,227 3,990 6.2

  22. Credit Cards Card Base - Million Market Share - % 22.2 Revenues (Credit and Debit Cards) 19.7 18.8 6.8 18.6* 5.8 13.6 3.0 16.0 15.4 13.9 10.6 2Q06 1Q07 2Q07 2Q06 1Q07 2Q07 Revenue – R$ Million # Transaction - Million 8,770 104.4 8,014 96.5 12.3 1,003 10.1 783 69.8 5,118 2.7 212 7,767 92.1 7,231 86.4 67.1 4,906 2Q06 1Q07 2Q07 2Q06 1Q07 2Q07 Private Label Credit Cards * Calculated based on April and May of 2007 and june projected

  23. Fee Income R$ Million Variation % 2Q07 1Q07 1H07 1H06 Q-o-Q Y-o-Y Checking Accounts 583 574 1,157 1,005 1.6 15.1 Cards 581 557 1,138 703 4.3 61.9 Credit Operations 468 441 909 739 6.1 23.0 Asset Management 345 334 679 609 3.3 11.5 Collection 211 204 415 363 3.4 14.3 Interbank Fees 79 76 155 143 3.9 8.4 Receipt of Taxes 66 70 136 120 (5.7) 13.3 Consortium 57 53 110 92 7.5 19.6 Custody 33 30 63 52 10.0 21.2 Brokerage 24 19 43 25 26.3 72.0 Others 162 201 363 280 (19.4) 29.6 TOTAL 2,609 2,559 5,168 4,131 2.0 25.1

  24. Operational Expenses Variation % 2Q07 1Q07 1H07 1H06 Q-o-Q Y-o-Y - Structural (1,369) (1,265) (2,634) (2,447) 8.2 7.6 - Non Structural (280) (195) (475) (441) 43.6 7.7 Personnel (1,649) (1,460) (3,109) (2,888) 12.9 7.7 Administrative (1,644) (1,540) (3,184) (2,692) 6.8 18.3 Total (3,293) (3,000) (6,293) (5,580) 9.8 12.8 Operational Expenses*/ Total Assets 4.3% 4.3% 4.3% 4.8% R$ Million (*) Accumulated over 12 months

  25. Coverage Ratio (12 months accumulated) 12,515 12,066 11,802 11,471 11,135 10,776 10,454 9,907 10,226 9,935 9,971 9,935 9,594 9,417 8,898 8,104 8,484 8,059 7,728 7,349 7,014 6,551 6,166 5,824 4,557 3,712 2002 X 2Q07 Evolution R$ Million 54% 168% 79.4 78.0 75.4 74.0 72.4 71.7 70.3 68.6 65.7 62.1 58.8 47.5 45.8 2002 2003 2004 1Q05 2Q 3Q 4Q 1Q06 2Q 3Q 4Q 1Q07 2Q Personnel and Administrative Expenses Fee Income Coverage Ratio in % (12 months accumulated)

  26. Funding R$ Million Variation % Jun07 Mar07 Jun06 Q-o-Q Y-o-Y Demand Deposits 21,604 20,708 16,923 4.3 29.8 Savings Deposits 28,406 27,609 24,835 2.9 14.4 Time Deposits + Debentures 56,893 58,006 51,694 (1.9) 10.1 Subordinated Debts 13,203 12,147 10,903 8.7 21.1 Total 120,106 118,470 104,355 1.4 15.4 Fixed Income 144,292 137,792 126,168 4.7 14.4 Equities 11,968 9,100 5,872 31.5 103.8 Third-Party 5,021 4,759 5,608 5.5 (10.5) Assets under Management 161,281 151,651 137,648 6.4 17.2

  27. Insurance, Pension Plans and Saving Bonds Income Statement Summary R$ Million Variation % 2Q07 1Q07 1H07 1H06 Q-o-Q Y-o-Y Net Written Premiums 5,055 4,801 9,856 8,646 5.3 14.0 Reinsurance and Reddemed Premiums (1,212) (1,195) (2,407) (1,900) 1.4 26.7 Retained Premiums 3,843 3,606 7,449 6,746 6.6 10.4 Technical Provisions (1,098) (1,049) (2,147) (1,045) 4.7 105.5 Fee Income 161 156 317 253 3.2 25.3 Retained Claims (1,503) (1,428) (2,931) (2,985) 5.3 (1.8) Personnel and Administratives Expenses (276) (240) (516) (493) 15.0 4.7 Raffle/Benefits and Redemptions (865) (1,014) (1,879) (1,867) (14.7) 0.6 (*) Others (276) (325) (601) (753) (15.1) (20.2) Financial Result 906 636 1,542 1,490 42.5 3.5 Operating Income 892 342 1,234 1,346 160.8 (8.3) Equity Result 69 72 141 44 (4.2) 220.5 Non-Operating Income (6) 399 393 110 (101.5) 257.3 IT/SC and Minority Interest (259) (284) (543) (459) (8.8) 18.3 Net Income 696 529 1,225 1,041 31.6 17.7 (*) Commercial Expenses/ Other Revenues/ Operational and Tax Expenses

  28. Insurance, Pension Plans and Saving Bonds Variation % R$ Million 2Q07 1Q07 1H07 1H06 Q-o-Q Y-o-Y 2,764 2,690 5,454 4,409 2.8 23.7 Life and Pension Plans 1,061 1,009 2,070 1,900 5.2 8.9 Health 833 769 1,602 1,588 8.3 0.9 Auto and P&C 402 343 745 666 17.2 11.9 Savings Bonds 5,060 4,811 9,871 8,563 5.2 15.3 Total 16.4 34.0 8,449 7,256 8,449 6,305 Stockholders’ Equity 33,3 - 44% 33% 36% 36% ROAE

  29. Technical Provisions Total 52,900 50,653 43,947 Jun06 Mar07 Jun07 R$ Million Health 2,744 2,501 1,796 Jun06 Mar07 Jun07 Pension Plans and Life /VGBL Auto/P&C 45,409 2,280 43,430 2,257 37,574 2,128 Jun06 Mar07 Jun07 Jun06 Mar07 Jun07

  30. Asset and Revenues Composition 13,688 12,352 7,133 6,555 2Q07 1H06 1Q07 1H07 R$ Million Insurance, Pension Plans and Saving Bonds Revenues Financing Assets 61,943 57,294 50,429 Jun06 Mar07 Jun07

  31. Personnel Expense Ratio* % 5.7 5.5 5.2 5.0 1H07 1H06 2Q07 1Q07 * Personnel Expenses / Premiums (%)

  32. Main Ratios % Combined Ratio 109.0 106.6 104.1 (*) 94.7 99.7 (*) 93.2 (*) 91.8 1H06 1H07 1Q07 1H07 1Q07 2Q07 2Q07 International Combined Ratio 99.9 98.0 96.0 (*) 87.7 93.8 (*) 86.6 (*) 85.5 1H06 1H07 1Q07 1Q07 1H07 2Q07 2Q07 (*) Adjusted by non-recurring events in the period

  33. Macroeconomic Outlook 2007 2008 GDP 4.90 % 4.62 % Interest Rate (Year-End Selic) 10.75 % 9.50 % Inflation (CPI) 3.50 % 3.80 % Fx Rate (R$/US$) 1.80 1.80

  34. Bradesco Guidance 2007 Previous Current Loan Portfolio 21-27% 20-25% Individuals 25-30% 25-30% Corporates 19-24% 17-22% Fee Income 18-23% 18-23% Net Interest Income 4-10% 4-10% Operational Expenses 12-16% 12-16% Insurance Premiums 12-14% 8-10%

  35. 1H07 Earnings Results

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