SECURITIES AND EXCHANGE COMMISSION
06029-900 - Osasco - SP
Federative Republic of Brazil
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____ .
Notice to the Market
Disclosure of results for the years 2011 and 2010, in accordance to International Financial Reporting Standards (IFRS)
Banco Bradesco S.A. 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, 2011 and 2010, 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 millions
| Balance sheet | 12/31/2011 | 12/31/2010 | |||||
| BR GAAP (1) | Adjustments (2) | IFRS | BR GAAP (1) | Adjustments (2) | IFRS | ||
| Assets | |||||||
| Cash and balances with banks | 93,785 | (7) | 93,778 | 80,935 | 25 | 80,960 | |
| Financial assets held for trading | 132,869 | (36,272) | 96,597 | 99,496 | (24,262) | 75,234 | |
| Financial assets available for sale | 13,854 | 31,394 | 45,248 | 10,836 | 29,343 | 40,179 | |
| Investments held to maturity | 31,508 | (27,397) | 4,111 | 28,577 | (25,183) | 3,394 | |
| Assets pledged as collateral | 144,677 | (47,555) | 97,122 | 118,244 | (38,543) | 79,701 | |
| Loans and advances to banks | 35,827 | 36,837 | 72,664 | 40,722 | 23,993 | 64,715 | |
| Loans and advances to customers (3) | 235,220 | 10,655 | 245,875 | 203,996 | 6,284 | 210,280 | |
| Non-current assets held for sale | 445 | - | 445 | 412 | - | 412 | |
| Investments in associated companies | 1,339 | 1,052 | 2,391 | 1,115 | 1,183 | 2,298 | |
| Property and equipament | 4,413 | (146) | 4,267 | 3,766 | (97) | 3,669 | |
| Intangible assets and goodwill | 8,978 | (1,761) | 7,217 | 6,359 | (947) | 5,412 | |
| Taxes to be offset | 4,767 | (194) | 4,573 | 1,803 | (213) | 1,590 | |
| Deferred income taxes | 20,890 | (3,797) | 17,093 | 17,447 | (4,713) | 12,734 | |
| Other assets | 32,961 | (2,255) | 30,706 | 23,777 | (1,401) | 22,376 | |
| Total assets | 761,533 | (39,446) | 722,087 | 637,485 | (34,531) | 602,954 | |
| Liabilities | |||||||
| Deposits from banks | 251,798 | (47,508) | 204,290 | 210,419 | (38,498) | 171,921 | |
| Deposits from customers | 216,322 | (1) | 216,321 | 192,476 | - | 192,476 | |
| Financial liabilities held for trading | 734 | 13 | 747 | 730 | 3 | 733 | |
| Funds from securities issued | 41,522 | 109 | 41,631 | 17,674 | 136 | 17,810 | |
| Subordinated debt | 26,910 | - | 26,910 | 26,315 | - | 26,315 | |
| Insurance technical provisions and pension plans | 99,081 | 31 | 99,112 | 83,453 | 40 | 83,493 | |
| Other provisions | 18,125 | (198) | 17,927 | 13,480 | (152) | 13,328 | |
| Current income tax liabilities | 3,051 | (292) | 2,759 | 2,228 | (305) | 1,923 | |
| Deferred income tax liabilities | 4,826 | (2,579) | 2,247 | 4,791 | (2,810) | 1,981 | |
| Other liabilities | 42,967 | 7,794 | 50,761 | 37,404 | 4,412 | 41,816 | |
| Shareholders´ equity of controlling | 55,582 | 3,557 | 59,139 | 48,043 | 3,008 | 51,051 | |
| Non-controlling interest | 615 | (372) | 243 | 472 | (365) | 107 | |
| Total liabilities and shareholders´equity | 761,533 | (39,446) | 722,087 | 637,485 | (34,531) | 602,954 | |
| 1) |
Information presented herein consider amounts calculated pursuant to the accounting practices adopted in Brazil (BR GAAP), which are applicable to financial institutions and classified according to the presentation model determined by IFRS´s; |
| 2) |
Adjustments from the consolidation process, reclassification between accounts and other effects from the adoption of IFRS´s; and |
| 3) |
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 2011 and 2010 years:
Reconciliation of Shareholders´Equity and Net Income - in R$ millions
| Adjustments | Shareholders´ Equity |
Net Income | Shareholders´ Equity |
Net Income | |
| 12/31/2011 | 2011 | 12/31/2010 | 2010 | ||
| BR GAAP | 55,582 | 11,028 | 48,043 | 10,022 | |
| 1) Fair value adjustment of financial instruments in consolidated | 3,795 | - | 3,490 | - | |
| 2) Fair value adjustment of financial assets - equity instruments | 166 | - | 520 | - | |
| 3) Adjustement to the recoverable value of loans and advances | 2,004 | 979 | 1,025 | 598 | |
| 4) Reversal of hedge accounting | - | (1,082) | - | 164 | |
| Others | 330 | 167 | 163 | (429) | |
| Deferred income tax and social contribution of IFRS adjustments | (2,738) | (134) | (2,190) | (415) | |
| IFRS - Attributable to the controlling shareholder (1) | 59,139 | 10,958 | 51,051 | 9,940 | |
| Non-controlling shareholder | 243 | 131 | 107 | 112 | |
| IFRS - Attributable to the controlling and non-controlling shareholder (1) . | 59,382 | 11,089 | 51,158 | 10,052 | |
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(1) The net income basis for the calculation of dividends and interest on capital paid to shareholders, is originally from BR GAAP, w hich w as released on January 31, 2012 | |||||
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Below is a description of the main changes from the adoption of IFRS: | |
| 1) | Fair value adjustment of financial instruments in consolidated wholly-owned mutual funds |
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The Organization chose to classify these financial instruments in the available-for-sale category, according to the exemptions allowed in the transition to IFRS 1(R), since for the purposes of BR GAAP following Resolution CMN 3,181/04, the financial instruments included in the held-to-maturity category may be sold, provided that new securities of same nature are simultaneously acquired, with maturity longer than or equal to that of the securities sold. Thus, the fair value adjustment relating to these financial instruments will be recognized in Equity Accumulated Comprehensive Income, net of tax effects. | |
| 2) | Fair value adjustment of financial assets equity instruments |
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The Organization does not have significant influence in the management of the investee, this shareholding will be designated as available-for sale and recorded at fair value on the date of transition to IFRS, the subsequent changes in fair value within Equity Accumulated comprehensive income, net of tax effects. | |
| 3) | Adjustment to the recoverable value of loans and advances |
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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. | |
| 4) | Reversal of hedge accounting |
|
These financial instruments were not designated as hedge instruments for IFRS purposes, and thus they were not treated as hedges for accounting purposes under IAS 39. Therefore, the amount recorded in equity under BR GAAP was reversed against retained earnings at the transition date. | |
Cidade de Deus, Osasco, S.P, March 30, 2012
Banco Bradesco S.A.
Luiz Carlos Angelotti
Managing Director and
Investor Relations Officer
Should you have any questions or require further information, please contact Mr. Paulo Faustino da Costa, phone 55 11 2178-6201, e-mail 4823.paulo@bradesco.com.br; Mrs. Ivani Benazzi de Andrade, phone 55 11 2178-6218, e-mail: 4823.ivani@bradesco.com.br or Mr. Carlos Tsuyoshi Yamashita, phone 55 11 2178-6204, e-mail: 4823.carlos@bradesco.com.br .
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BANCO BRADESCO S.A. | ||
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By: |
/S/ Luiz Carlos Angelotti
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| Luiz Carlos Angelotti Executive Managing Officer and Investor Relations Officer | ||
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.