Provided by MZ Data Products

For the month of August, 2003

Commission File Number 1-15250

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___ Form 40-F _______

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____


Financial Market Indicators (%)
Index	2002			2003
	1st Qtr.	2nd Qtr.	1st Half	1st Qtr.	2nd Qtr.	1st Half
CDI	4.20	4.28	8.67	5.68	5.78	11.79
IBOVESPA – Average	(2.38)	(15.96)	(17.96)	0.04	15.07	15.12
USD - Commercial rate	0.14	22.41	22.58	(5.10)	(14.35)	(18.72)
IGP-M	0.51	2.95	3.48	6.26	(0.35)	5.89
IPCA – IBGE	1.49	1.43	2.94	5.13	1.43	6.64
TJLP	2.41	2.29	4.76	2.63	2.87	5.58
TR	0.55	0.60	1.16	1.28	1.31	2.61

	U.S. dollar (closing price – sell)
USD – Commercial rate (in reais)	2.3236	2.8444	2.8444	3.3531	2.8720	2.8720


Compulsory Deposit Rates (%)
Index	2002		2003
	1st Qtr.	2nd Qtr.	1st Qtr.	2nd Qtr.
Demand deposits ⁽¹⁾	45	45	60	60
Additional ⁽²⁾	-	-	8	8
Time deposits ⁽³⁾	10	15	15	15
Additional ⁽²⁾	-	-	8	8
Savings deposits ⁽⁴⁾	15	20	20	20
Additional ⁽²⁾	-	-	10	10

(1) Cash deposit – no remuneration.
(2) Cash deposit – SELIC rate.
(3) Deposit in Government Securities.
(4) Cash deposit – Reference Rate (TR) + interest of 6.17% p.a.


Rates and Limits (%)
Index	2002		2003
	1st Qtr.	2nd Qtr.	1st Qtr.	2nd Qtr.
Income tax	25	25	25	25
Social contribution	9	9	9	9
PIS	0.65	0.65	0.65	0.65
COFINS	3	3	3	3
Legal reserve on net income	5	5	5	5
Maximum fixed assets (*)	70	60	50	50
Minimum capital – Basel (**)	11	11	11	11

(*) On reference equity.
(**) Reference equity may not be lower than 11% of weighted assets.

This Report on Economic and Financial Analysis contains forward-looking statements relating to our business which are based on management’s current expectations, estimates and projections about future events and financial trends which could affect our business. Words such as: “believes”, “anticipates”, “plans”, “expects”, “intends”, “aims”, “evaluates”, “predicts”, “foresees”, “projects”, “guidelines”, “should” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve risks and uncertainties which are difficult to predict and which could be beyond our control. Furthermore, certain forward-looking statements are based on assumptions which future events may prove to be inaccurate. Therefore, actual results may differ materially from the plans, objectives, expectations, projections and intentions expressed or implied in such forward-looking statements.

Factors which could cause actual results to differ materially include, among others, changes in regional, national and international commercial and economic conditions; inflation rates, increases in customer default and any other delays in credit operations; increases in the allowance for loan loss; loss of funding capacity; loss of clientele or revenues; our capacity to sustain and improve performance; changes in interest rates which could, among others, have an adverse effect on our margins; competition in the banking sector, in financial services, credit card services, insurance, asset management and other related sectors; government regulations and fiscal matters; disputes or adverse legal proceedings or ruling; as well as credit risks and other loan and investment activity risks.

Accordingly, the reader should not place undue reliance on these forward-looking statements. In all cases, these forward-looking statements are valid only as at the date they are made. Except as required under applicable legislation, we assume no obligation whatsoever to update these statements, whether as a result of new information, future events or any other motive.

5 – Financial Statements, report of the audit commitee and Independent Auditors’ Report

Bradesco reported first-half net income of R$ 1.027 billion, corresponding to R$ 0.65 per thousand shares and a return of 17.08% on stockholders’ equity, annualized, and 18.66% on average stockholders’ equity.

Net income for the second quarter of 2003 (2Q03) was R$ 519 million, an increase of 2.39% in comparison with the first quarter of 2003 (1Q03).

Increase in the Main Statement of Income Items for the Six-month Period (in millions of reais)

Increase in the Main Statement of Income Items for the Quarter (in millions of reais)

Increase in Financial Margin Items plus Exchange Adjustment for the Six-month Period (in millions of reais)

Increase in Financial Margin Items plus Exchange Adjustment for the Quarter (in millions of reais)

Bradesco’s consolidated financial margin (before PDD) totaled R$ 5,983 million for 1H03, a 27% increase compared with R$ 4,700 million for the same period in 2002. However, in comparison with the prior quarter, the second-quarter margin dropped by some 22%.

We stress that a number of economic factors motivated this drop in financial margin, among which we highlight the following:

In 1Q03, income on securities transactions was favored by the recovery, affected by prior year volatility. This effect was not repeated in 2Q03.

Accordingly, the annualized financial margin for 2Q03 (obtained from dividing the lending and trading margin by the average balance of total assets) dropped from 9.7% to 7.2% as compared to 1Q03.

Adjusting the additional provision for market risk fluctuation recorded/reversed for the periods (exchange provision), annualized financial margin would be 8.1% for the quarter, compared with 10.2% in 1Q03.

Nevertheless, comparing growth for 1H03 with the same period in 2002, the financial margin increased by 8.3% in 1H03 and 8.1% in 1H02. Adjusting the additional provision for market risk fluctuation, these rates would increase to 9.0% in 1H03 and 8.3% in 1H02.

At June 30, 2003, Bradesco’s headcount, including its subsidiaries, totaled 78,148 employees. This increase compared with the headcount at December 2002 was generated mainly by the acquisition of BBV Banco. The following table presents the evolution of Bradesco’s headcount.

At June 30, 2003, Bradesco’s personnel expenses totaled R$ 2.2 billion, including expenses for remuneration, social charges, benefits, training, employee profit sharing and others.

Benefits offered by Bradesco to its employees include health insurance and dental care, as well as a supplementary retirement pension plan.

The following pie graph presents the percentage share of each item in relation to total Bradesco personnel expenditure:

Bradesco’s staff training activities are tuned to its organizational strategies, to the ongoing improvement of its customer service quality and to its capacity to produce results.

Accordingly, the Training Program uses tailor-made methodologies, offering in-class or self-training courses to all its staff, designed to meet both their professional and personal development needs.

The most innovative of these training methodologies, permitting the rapid inclusion of a considerable number of employees, is the ‘TreiNet’, online training program which was used in the first six-month period of 2003 by 113,328 participants for courses in Integration and Basic Banking, Financial Mathematics, Business Accounting and Balance Sheet Analysis, Financial Market and Investments, Loans and Financing, Business Support Platforms, Convenience Services, Internal Control Systems, Savings Bonds, Vida e Previdência pension plans, Cashier Training and Written Communication.

Through the important partnerships entered into with Consulting Firms, Universities and Business Schools, such as USP, FGV and IBMEC, the Bank qualifies its professional staff to operate in the Organization’s diverse specialist segments, such as Bradesco Empresas (Middle Market), Corporate and Private Banking, Prime and Consortium.

Particular emphasis should also be given to the specialization courses offered at post-graduate level. Two groups have been formed for courses such as: Business Process Management and Foreign Trade and International Operations, given at the following institutions, FIA, and FIPE.

Bradesco’s compliance culture was also strengthened through distance learning courses, via manuals and TreiNet programs available to all the Organization’s employees.

During the first half of 2003, 702 courses were given, in 7,444 groups, with 206,056 employee participations and a total of 3,659,210 hours spent in training, as well as investments to the order of R$ 30.0 million.

The slight downturn in the operating efficiency ratio was motivated by acquisitions made by the Bradesco Organization in the prior 12 months. We stress that the synergy process of these acquisitions has still not been fully concluded.

As part of the Organization’s ongoing pursuit to optimize its results and performance, Bradesco commenced a process in 2000 designed to introduce a cost control culture through the implementation of Activity-Based Costing (ABC) methodology which provided, among others, support for studies relating to the formation and negotiation of banking charges, costing information for performance and decision-making support management and for customer profitability purposes, and for the formation of a database for analyses regarding the unification and rationalization of the Bank’s different units.

The Organization is currently implementing ABM (Activity-Based Management) methodology which will rapidly lead to cost prevention practices and a pro-active approach as regards the identification of opportunities. Thus, at the same time as we improve our processes, we are also able to seamlessly integrate operating performance with strategic objectives, in the pursuit to create and/or sustain competitive advantages and value for both our customers and stockholders.

Accordingly, the future mission of the activity-based management model is to provide ongoing support for planning and controlling the Bank’s business processes and to promote the permanent improvement of operating and tactical issues and to provide a firm basis for their strategic gearing.

We present below the composition of the credit portfolio by type of operation and economic activity sector.

At the end of the second quarter of 2003, some 99.6% of the credit portfolio was directed to the private sector, with no significant movement compared with the prior quarter. By economic activity sector, manufacturing maintained the majority of credit volume, with a 32.4% share of total operations, particularly food and beverages, steel, metal products and mechanics. Credits directed to the service sector, including financial intermediaries, comprised 22.1%, whereas commerce and farming/livestock activities recorded a 16.3% and 1.6% portfolio share, respectively. Loans to consumers comprised 27.2% of the portfolio.

Maintaining a similar trend to that presented in the first quarter of 2003, the credit operation portfolio was down slightly by 1.2% in 2Q03 with a total consolidated balance of R$ 49.1 billion in June, excluding operations derived from the acquisition of BBV Banco. As a result, the accumulated decline in the credit portfolio for the first half was 3.4%, lower than that recorded for the prior twelve months of 6.7%.

These results were motivated once again by the weak economic activity prevailing throughout the period, confirmed by a declining GDP and affecting both the level of consumption as well as the volume of new investments. The downturn was particularly felt in the decreasing amount of credit granted to corporate entities, and as a result of the appreciation of the real against the U.S. dollar verified since the beginning of the year.

For the second half, if the government decides to cut the basic interest rate and compulsory deposit rates as projected by the majority of analysts, the forecast for Brazil’s future economic performance will be much brighter, facilitating a progressive return to consumption and private-sector investment, as well as gradually increasing the demand for bank credit as a result.

The distribution and quality of the credit portfolio by risk level, at June 30, 2003, remained stable in comparison with the first quarter. The operations concentrated from levels AA to C, classified by BACEN as normal course operations, totaled 90.2% of the accumulated balance. 3.4% of operations were classified at risk administration level D and will remain so until this risk is reduced or guarantees with greater liquidity are obtained. Only 6.4% were considered to be abnormal course operations, subject to partial loss after the application of customary recovery procedures. The maintenance of these rates reflects the Bank’s permanent use of credit assessment and monitoring instruments.

The volume of the allowance for loan losses for the first half of 2003 totaled R$ 4,109 million, corresponding to 7.7% of total credit operations. However, of this amount, only 48.8% effectively comprises overdue operations (past due and falling due) compared to 49.8% in March and the remaining portion is recorded as a precaution only, based on the customers' internal classification or to cover specific and general portfolio risks.

Movement of the Portfolio between June 2002 and June 2003 - In millions of reais

The performance of the consolidated credit portfolio for the prior twelve months ended June 30, 2003, despite the low level of economic activity, evidences the maintenance of the quality of the assets, mainly as a result of new borrowers and acquisitions during the period, corresponding to increases of 13.4% and 7.6%, respectively, in total loans for the period.

As a result, the quality of the credits granted to new borrowers in annual terms is proving to be satisfactory and accordingly the percentage of credit operations classified as normal course (from AA to C) maintained its customary high level, totaling 90.2% at the end of the first half.

To facilitate the analysis of the Bank's credit portfolio performance, we present below, on a consolidated basis, a comparative summary of the main parameters, based on the rules established by BACEN for recording provisions.

The figures at the end of June 2003 confirm the low credit risk of the Bradesco portfolio, as a result of its comfortable coverage levels and moreover that the Organization's credit asset expansion strategy is being applied on a secure and consistent basis.

The balance of Bradesco Organization Savings Accounts at the end of the first six-month period totaled R$ 20.7 billion in deposits, comprising an 18.9% market share of the Brazilian Savings and Loan System (SBPE).

Bradesco was ranked first place in the ‘outstanding funds’ group published by Invest Tracker-Estadão 2003, which analyzed results for 2002. Through the group member company BRAM-Bradesco Asset Management, the Bank had the most five-star funds according to a study carried out by Thomson Financial do Brasil.

Bradesco was given the Top Gestão de Fundos 2003 award in the Derivative and Balanced Fund categories by Standard & Poor's Star Ranking, carried out exclusively in Brazil and published by the Valor Investe Magazine (Best Fund Managers) in May 2003.

BRAM-Bradesco Asset Management, the group company responsible for managing Investment Funds completed its 2nd year in operation on July 1, 2003.

JCP – Interest attributed to own capital (paid and accrued)
ON - Common stock
PN - Preferred stock

Market Value (number of shares x average last-day
price for the period) - In millions of reais

N.B. Return on stockholders’ equity (total) = Net income/Closing stockholders' equity annualized exponentially.
Return on stockholders’ equity (average) = Net income/average (daily) stockholders' equity annualized exponentially.

(1) Reference equity may not be lower than 11% of weighted assets.
(2) At June 30, 2003, the ratio of permanent assets to stockholders’ equity is limited to 50% of reference equity.

The economic stability brought by the Real Plan prompted the Brazilian financial sector to develop sophisticated risk management policies. An increasingly high-powered market, globalization and advanced technology motivated the creation of specific procedures for monitoring and controlling risks.

Bradesco, permanently alert to these changes, has developed a number of mechanisms in recent years designed to plan, control and manage the risks inherent to its banking activities and which include the following: credit, market, operating and liquidity risks, as well as the management of risk capital and internal controls.

A culture focusing Risk Management and Compliance, allied with a thorough knowledge of latest-generation risk management processes, provides a decisive competitive edge, aiding the maintenance of stability, continuity and supporting profit growth, adding value to the Bradesco brand name. This culture facilitates transparency and ensures that intelligent decisions are made, controlling risks in proportion to yield and optimizing the allocation of capital in benefit of stockholders and investors.

In addition to its banking activity, Bradesco has extended its risk analysis culture to encompass its equity related companies such as Bradesco Vida e Previdência, Bradesco Saúde, Bradesco Seguros and Bradesco Capitalização, as regards actuarial and market risks.

In the first quarter of 2002, the Risk Management area incorporated the activities carried out by other areas of the Institution responsible for compliance, including Brazilian Payment System (SPB) risk management, transaction validation, internal controls, operating risks, information security and money laundering prevention.

The Risk Management and Compliance area is independent from other operating areas, reporting directly to the president:

An independent process for monitoring, controlling and managing risks is critical to effective management. The area’s activities are governed by a standing committee, which evaluates positions and ratifies decisions involving control and limit policies.

A financial institution complies when all its transactions are carried out in accordance with the laws and rules in force in an ethical manner and avoiding conflict of interests. The Compliance department is designed to prevent damage and to manage legal, regulatory and reputation risks, supporting the Branches and Departments in their daily activities.

Particular emphasis is given to personnel and technology resources, ensuring that the Bradesco Group has permanent access to the cutting-edge technology required for managing the Organization’s risks.

The new organizational structure is designed to facilitate a greater focus on these critical activities and confirms the Organization's adherence to best corporate governance practices.

Credit risk is the risk arising from the possibility of loss due to the non-receipt of amounts contracted with counterparties and related creditors. Credit risk management requires a strictly disciplined control over all analyses and transactions carried out, safeguarding process integrity and independence.

Designed to ensure maximum security, quality and liquidity in the investment of assets, minimizing risks inherent to all types of credit operation, the Organization's Credit Policy also seeks to offer agile and profitable business, applying appropriate methodology for each of the Bank’s business segments, set forth in the following topic, as well as directing the establishment of operating limits and the granting of credit.

Credit is granted based on a highly automated and efficient approvals system, supported by assessment policies which are geared by constantly improving technical parameters designed to ensure proper support for credit decisions.

As part of this system, the Branches operate within varying limits depending on the size and type of guarantee offered, while specialized credit scoring systems maximize the speed and security of the approvals process, based on strict protection standards.

The credit committees located at the Bank's headquarters also play an important role, centralizing, analyzing and authorizing credit operations at amounts above the branch limits and managing this core strategic activity.

Operations are diversified, non-selective and focused on consumer and corporate customers with sound payment capacity and proven creditworthiness. Care is taken to ensure that the underlying guarantees are sufficient to cover the risks assumed, considering the purpose and terms of the credit granted.

Bradesco operates on a segmented service basis, seeking to match its different products and services to the different profiles and size of its target public. In line with a world market trend, Bradesco’s structure permits the grouping together of customers with similar profiles facilitating superior quality customer service, extending business opportunities with a greater focus on relationship actions.

Major corporations with annual billings in excess of R$ 180 million are served since June 1999 by Bradesco Corporate Banking which provides a range of sophisticated financial solutions, enhancing its service structure through the use of the Asian and Euro Desks, focused on prospecting new business in these regions.

Middle market companies, with annual billings from R$ 15 million to R$ 180 million, are served by Bradesco Empresas which came into operation in January 2002 designed to offer a differentiated service in exclusive VIP areas, tailored to the specific needs of this type of customer, who in general prefer the use of alternative channels such as telephone, ATMs and the Internet, instruments in which Bradesco technology is outstanding.

In the consumer customer area, the first step in terms of customer segmentation was taken via Bradesco Private Banking, focused on the personalized management of high-income customer accounts with funds available for investment in excess of R$ 1 million, which commenced operations in November 2000.

More recently in May 2003, following the incorporation of Banco Mercantil de São Paulo, the Bradesco Prime service was launched targeting consumer customers with monthly incomes in excess of R$ 4 thousand or investments in excess of R$ 50 thousand. Through exclusive branches, or specifically reserved areas in traditional branches, this public receives a high standard of personalized customer service with a wide range of products and services, including diverse credit lines, insurance policies and private pension plans.

Other customers are classified on a retail basis as companies or consumers. Bradesco’s activities in this segment were strengthened through the partnership entered into last year with the Brazilian Postal and Telegraph Company – Correios for the purpose of creating Banco Postal, the post-office bank. Dedicated to extending banking service access to low-income bracket consumers, particularly those who live in the country’s remote interior regions, Bradesco is now present in all of Brazil’s states.

In addition to supporting the establishment of minimum parameters for granting credit and managing risk, the credit risk scoring system established by the Brazilian Central Bank also facilitates the definition of differentiated credit policies based on the customer's specific, characteristics and size, providing a basis for the correct pricing of operations and for establishing the most appropriate guarantees for each situation.

In accordance with internal policy, Bradesco customer risk ratings are established on a corporate basis and are permanently reviewed to maintain the quality of the credit portfolio. These ratings are segmented as follows:

In the case of consumer customers, the above risk ratings are mainly defined based on their registered reference variables which include: income, equity, restrictions and indebtedness, as well as performance and past relationship with the Bank.

Market risk is related to the possibility of the loss of income from fluctuating rates caused by mismatched maturities, currencies and indices of the Institution's asset and liability portfolios. This risk is monitored on a strict basis by the financial market to avoid losses for institutions.

At Bradesco, market risks are managed through methodologies and models which are consistent with local and international market realities, ensuring that the Organization's strategic decisions are implemented with speed and a high level of reliability.

The Organization adopts a conservative policy regarding market risk exposure; VaR (Value at Risk) limits are defined by Senior Management, and compliance is monitored daily by an area which is independent from portfolio management. The methodology used to determine VaR has a reliability level of 97.5%. The volatilities and correlations used by the models are calculated on statistical bases, whereas future prospects are calculated based on economic studies. The methodology applied and current statistical models are validated daily using backtesting techniques.

Complementing the market risk monitoring, control and management structure and in accordance with Central Bank regulations, a daily verification is made of the values at risk for the fixed and foreign exchange positions of the Organization’s entire portfolio and of minimum capital requirements.

Operating risks are those inherent to activities which provide support for transactions in which the Organization participates and may occur as a result of the interruption of business, system failures, errors, omission, fraud or external events impacting the Institution’s results.

Following recent guidelines issued by the Basel Committee, the Organization is working to adapt its processes to comply with possible future Central Bank demands, complementing its present capital management policies, based on an analysis of operating losses.

Operating risk is managed at Bradesco based on the dissemination of its culture, disclosure of its policies and development of own methodologies, models and tools designed to permit, among other factors, decreases in the cost of regulatory capital to be subscribed and at the same time increases in operating efficiency.

Bradesco’s adherence to the 10 principles of good operating-risk-management practice determined by the Basel Committee was appraised by the Operating Risk Management area. As a result, a specific area activity plan and schedule was put into place, for the purpose of identifying and mapping the current processes used to record operating losses and the accounts used by the initially selected areas.

As a result of the need to compile and maintain consistent historical data on operating losses for a 5-year period, the information relating to losses managed at present was analyzed from 2000. At the same time, a number of performance indicators were selected to serve as a basis for analyzing and projecting the relevance of these operating losses in relation to the Organization’s overall activities.

In line with the definition and development of the methodology and accounting and management criteria used for managing operating risk, the area is now implementing a specific Internal Management System for streamlining this information, designed to manage, enhance and increase the knowledge used to administrate operating loss events, facilitating an in-depth assessment, based on either management or accounting controls.

The cutting-edge nature of this internal operating risk management process can be regarded as a benchmark of Bradesco’s important status within Brazil’s financial scenario, increasing its competitive edge as a result of greater operating efficiency and adding stockholder value, as well as extending its relationship of trust with customers, the market and regulatory bodies.

Liquidity risk management is designed to control the different mismatched liquidation terms of the Institution's rights and obligations, as well as the liquidity of the financial instruments used to manage the financial positions.

Knowledge and monitoring of this risk are critical since they enable the Organization to settle transactions on a timely and secure basis.

At Bradesco, liquidity risk management involves a series of controls, mainly, the establishment of technical limits and an ongoing assessment of the positions assumed and financial instruments used.

The Organization's capital is managed to optimize the risk-return ratio, minimizing losses through the implementation of well-defined business strategies and maximizing efficiency in the combination of factors which impact the Capital Adequacy Ratio (Basel).

Complementing its operating risk control and management activities, the Organization has developed a number of systems, policies and internal controls over the years to mitigate possible potential losses generated by its exposure to this type of risk.

Aware of the importance of these controls, Bradesco has developed and implemented certain tools designed to optimize these processes and procedures, among which we highlight the following:

- Implementation of an internal controls system (Compliance), based on the pillars defined by Basel and the methodology of the Committee of Sponsoring Organizations (COSO), mainly as regards components in the following areas: control environment, risk assessment, control activities, information, communications and monitoring, ensuring that activities, policies and normative instructions are in constant compliance with legal and regulatory standards.

- Implementation of a Brazilian Payments System (SPB) risk management process for the specific purpose of monitoring the flow of messages transmitted between the Organization’s banks and the external entities such as the Brazilian Central Bank, Special Clearance and Custody System (SELIC), clearing houses and other financial institutions. This monitoring process is based on information system tools and intense staff training activities to facilitate the identification and rectification of events in environments and systems and also to ensure that online cash transfers (TEDs) processed via SPB are properly validated. Complementing these monitoring activities, the Bank also adopts a Systems Contingency Plan for SPB to cover the main departments handling critical transactions, addressing pre-established scenarios and actions and reducing the possibility of messages not being correctly processed.

- Ongoing improvement of technology tools and employee training, focused on the process used to monitor the financial activity of customers and designed to prevent money laundering and utilization of the Organization for processing illegal transactions.

- Dissemination of processes and procedures to guarantee information security, based on Corporate Information Security Policy and Standards, the guidelines of which establish premises for protecting the confidentiality, integrity and availability of information.

(1) PABs (banking service post) and PAEs (electronic service outlet) are installed exclusively in companies. PABs have at least one on-site bank clerk.
(2) Mercantil credit outlets were incorporated by Finasa Promotora de Vendas in August 2002.

The results presented by Banco Postal, at the end of the first half, confirm Bradesco’s commitment to attend customers from all income brackets.

Post-office Bank Branches now total 2,830 with 331 new units opened during the period. Banco Postal increased its number of accounts by 87.78%, with 272,279 new accounts opened in the first six months of 2003, totaling 582,446 accounts in all.

The steadily growing credit operations and volume of deposits substantiates Banco Postal’s important role as a channel for delivering credit and other banking services to Brazil’s low-income public.

Out of a total of 1,623 municipalities with no previous access to banking services, 898, with a population of 8.9 million, now benefit from the services offered by Banco Postal. The Bank’s active presence in these regions encourages business expansion, increases Bradesco’s competitive edge and promotes Brazil’s nationwide development.

Banco Postal plays an important role in these remote regions. For example, the 250 pensioners living in the region of Castelo dos Sonhos, in the state of Pará, had to travel over 158 km on roads which are little more than dirt tracks to the town of Novo Progresso to receive their monthly pensions, spending more than 20% of their income in travel expenses alone. The installation of a Banco Postal branch in their town has produced effective savings for these people, as well as facilitating access to other basic banking services.

In major cities or towns which already have Bradesco Branches, Banco Postal’s role is still important since Bradesco Customers now have access to a greater number of outlets close to their workplaces or homes.

As well as the traditional Customer Service Network (Branches), Bradesco customers are able to consult their banking affairs, carry out financial transactions and purchase products and services deployed via state-of-the-art technology through the following alternative channels: Self-service (Auto-Atendimento), Easy Phone (Fone Fácil) and Internet Banking.

Brazil’s largest Private-Sector Self-service Network, with 22,865 ATMs (Bradesco - 21,491, BCN - 884 and BBV Banco - 490).

Located in bank branches and in all areas of important economic agglomeration: Shopping Malls, Hypermarkets, Supermarkets, Airports, Service Stations, Bus Stations etc.

Bradesco Self-Service Network Distribution – Monthly Productivity – June 2003

Nationwide 24-hour access, 7 days a week, with Electronic Voice Response (EVR) technology covering 68 regions and personalized calls in 59 regions.

Personalized calls are routed via Bradesco’s Data and Voice Network to call centers in São Paulo –Santa Cecília and Osasco – Headquarters.

The Easy Phone service is widely used as a result of the large number of fixed and mobile telephones now in use throughout Brazil.

The Bradesco Portal contains links to 21 related websites and to the BCN, BBV Banco and Finasa Bank websites. Bradesco Internet Banking (www.bradesco.com.br) online since May 31, 1996 is a worldwide benchmark for Home Banking services.

Since it was first launched, Bradesco Internet Banking has focused on innovating and deploying the largest number of online services possible for its customers.

At present, Bradesco Internet Banking offers its customers more than 210 different services, which can be accessed 24 hours a day, seven days a week anywhere on earth.

Bradesco online services were created to facilitate the day-to-day life of its customers, offering access to the transactions available through the branch network from any point on the globe.

The internet is an important and profitable customer relationship channel, generating benefits for both customers and stockholders.

In March 1999, Bradesco launched ShopInvest (www.shopinvest.com.br), the first Brazilian retail bank broker to operate in BOVESPA's online Home Broker.

Through ShopInvest, investors can access a variety of different information and trade shares in BOVESPA, even if they are not Bradesco account holders. All of these services are provided free-of-charge and comply with the same rules applicable to bricks-and-mortar trading.

ShopInvest stands out for its wide range of investment options, available in nine Investment Rooms: Shares; Savings Bonds; CDB; Funds; Real Estate; BM&F; Savings Accounts; Private Pension Plans and Insurance.

In May 2001, Bradesco launched ShopCredit (www.shopcredit.com.br), the Bank’s Financing and Loan website, which offers a complete portfolio of Bradesco's credit lines. The products are grouped together for purchase by consumer or corporate customers with full details on each option and visitors can use a simulator to calculate amounts and terms in the Personal Credit, Consumer Financing (CDC), Leasing, Housing Loans and Finame (Moderfrota, Prefixado and Proleite) modes. ShopCredit visitors can also request instant personal credit, quickly and securely.

With Bradesco Net Empresa, companies gained a new ally for optimizing the financial management of their businesses. Through this website, companies can operate bank accounts, make payments and collections and perform other transactions online without having to visit a bricks-and-mortar branch.

Bradesco Electronic Trade was created in 1998 and soon became a successful hallmark. In the wake of this success, ShopFácil was launched in 2000, offering, among other services, “Meios de Pagamento Eletrônico Bradesco” (Bradesco Online Payment Methods) – the safest, most practical and economic way to shop online.

Bradesco is currently the only Bank in the world to date to receive ISO 9001:2000 accreditation for its Online Commercial Payment Methods.

Bradesco Electronic Payment Methods comprise: Electronic Wallet (Bradesco debit cards, PoupCard and Bradesco Visa and MasterCard Credit Cards), Pagamento Fácil (Easy Payment), Boleto Bancário (Online Dockets), Interaccount Transfers and Bradesco Online Credit.

In the B2B area, emphasis should be given to the business solutions offered by Bradesco comprising the following: a security and limits module, B2B payment methods, management tools (buyer, seller and bank) and a financial reconciliation module for the seller.

The number of Bradesco credit cards increased by 23% in the first six months compared with the same period in 2002, while the Visa and Mastercard market grew by some 11%. This growth rate expanded our market share from 14% in 2002 to 16% in 2003.

First-half billings totaled R$ 4.7 billion, a growth rate of 24% as compared to the same period in 2002, with a 15% increase in the number of transactions.

The number of debit cards increased by 15% in the first six months of 2003, compared to the same period in the prior year, strengthening Bradesco’s leadership of the Visa Electron market. In terms of billings this increase totaled 61%. These figures demonstrate clearly that Brazilians are changing their payment habits, substituting checks and cash for the use of debit cards. The commercial establishments are our allies in this market, since debit cards are preferred for their guaranteed liquidity, security and easy operation.

The network of commercial establishments in Brazil, accredited by the Visa system, is administered by Companhia Brasileira de Meios de Pagamentos - Visanet, in which Bradesco has a direct capital holding of 39%. In the first half of 2003, Visanet processed some R$ 25.1 billion in transactions, including both credit and debit card billings, a 36% increase over the same period in 2002. Visanet expanded its network by 17% compared to the prior year and at present has 800 thousand associated establishments nationwide. The Visa network is preferred by customers precisely because of the card’s wide market acceptance.

Since its creation in 1999, Bradesco Corporate Banking has focused on enhancing its specialized structures designed to provide the best possible service to 1,159 Economic Groups comprising its target market, segmented as follows:

Corporate: The structure devised to conduct the Bank’s relationship with Brazil’s major corporations is growing and improving year by year. Every effort is made to ensure that the related-area professionals have a thorough working knowledge of the corresponding economic sectors and companies and as a result are able to offer complete solutions and genuine added value, developing solutions in the areas of cash management, private pension plans, asset management, overseas trade and risk management.

Sugar and Alcohol/Coffee: A specialized team formed to attend these sector companies on a national level, with business, products and services specifically focused on this target public.

Asian Desk: Created through an agreement entered into with UFJ Bank, for the purpose of developing financial solutions for fomenting the commercial and financial flows with countries in eastern Asia where UFJ has an important presence such as China, Hong Kong, Taiwan, Korea, Singapore, Malaysia, Thailand, Indonesia, Philippines, India and Vietnam.

Following the conclusion of the acquisition process of BBV Banco, a Euro Desk will also be formed for the same purpose as the Asian Desk, to develop financial solutions designed to provide leverage to the Bank’s relationship with companies in Brazil that do business with other countries in which BBVA has a strong presence.

Bradesco’s middle market segment, Bradesco Empresas, was created in April 2002, designed to offer quality corporate customer service for companies all over Brazil.

Bradesco Empresas targets middle market companies with annual billings from R$ 15 million to R$ 180 million.

The Bank’s traditional Branch customers who are compatible with this profile are invited to join Bradesco Empresas.

The Bradesco Empresas service offers exclusively reserved Branches for its corporate customers in this segment, located in strategic areas.

Up to June 30, 2003, 35 service outlets were located in São Paulo and Rio de Janeiro with 4,623 customers from the different production chain sectors.

The personalized service offered by Bradesco Empresas prompted significant investments in this area, including specific training for our Relationship Managers and the restructuring of the IT structure, designed to provide added value and increase the Bank’s share of this segment.

Since they are responsible for a maximum portfolio of 25 to 30 organizations, each Relationship Manager is able to focus on increasing business in the following areas: Loans, Investments, Foreign Trade, Derivatives, Cash Management and Structured Transactions.

The recent mergers of other financial institutions by Bradesco have had a positive effect, increasing the Bank’s product portfolio and market share.

Up to the end of December 2003, there will be a total of 72 Middle Market Branches with some 18,000 corporate customers.

Launched on June 23, 2003, this service is part of the Organization’s strategy to strengthen its positions, considering the highly competitive scenario produced by the policies of recent governments in their pursuit for economic stability.

Designed principally to attend customers from Bradesco Corporate Banking and Bradesco Empresas, this service is focused on developing personalized solutions for customer needs in the following areas: project financing, securitization of assets, loan syndication, etc. which are known in the financial market as structured transactions.

Bradesco Private Banking deploys tailor-made ISO 9001:2000-accredited products and services, in both local and international markets. High-income customers receive financial advice from qualified experts on how to form the best possible investment portfolio designed to increase their wealth and maximize returns.

As part of the segmentation strategy implemented by the Organization in 1999, Bradesco Prime commenced activities on May 19, 2003, with a Network of 109 Branches distributed nationwide.

Bradesco Prime is designed to coordinate the Bank’s commercial relationship with high-wealth consumer customers, providing personalized attendance by Relationship Managers in exclusively reserved areas and offering products specifically developed for this segment’s needs.

Up to June 2003, Bradesco coordinated transactions with stock, debentures and promissory notes which totaled R$ 2.999 billion, comprising 70.78% of all issues registered at the Brazilian Securities Commission (CVM).

Of the total number of floating and fixed-return transactions registered at CVM up to June 30, 2003, Bradesco participated in 33% of the primary and secondary stock issues and in 20% of debenture issues and 33% of promissory notes issues.

Mergers, Acquisitions, Project Finance, Corporate Reorganization and Privatizations

Confirming its dynamic approach in the prospecting of new business, Bradesco ended the first half of 2003 with 4 operations in the Mergers and Acquisitions segment totaling more than R$ 2.6 billion.

Bradesco’s presence is also notable in Project Finance operations, acting as a financial advisor to major corporations operating in electric power generation and co-related projects such as the construction of gas pipelines. These projects currently amount to some R$ 5.5 billion.

The Organization has 27 specialized units operating in Brazil (Bradesco - 12, BCN - 5 and BBV Banco - 10), 1 Branch in New York (Bradesco), 4 Branches in Grand Cayman (Bradesco, BCN, Boavista and Mercantil), 2 Branches in Nassau (BBV Banco and Boavista), 1 subsidiary in Buenos Aires, Banco Bradesco Argentina S.A., 1 subsidiary in Nassau, Boavista Banking Limited and 2 subsidiaries in Luxembourg, Banco Bradesco Luxembourg S.A. and Banco Mercantil de São Paulo International S.A. and 1 subsidiary in Tokyo, Bradesco Services Co., Ltd. and 1 subsidiary in Grand Cayman, Cidade Capital Markets Ltd.

In the Exchange area, emphasis should be given to the traditionally important support offered by the Bradesco Organization to Foreign Trade, with a balance of US$ 6.0 billion recorded in the foreign exchange trading portfolio for financing imports and exports, as well as for onlending to local customers.

Foreign exchange trading for exports up to May 2003 totaled US$ 5.4 billion, an 10.5% increase compared to the same period in 2002. We also highlight the 32% increase in foreign exchange trading for imports which totaled US$ 2.2 billion, as compared to US$ 1.7 billion posted for the first five months of 2002.

We present below the composition of the foreign trade portfolio at June 30, 2003:

As well as the funds obtained through the Commercial Paper program in the United States, the foreign exchange portfolio is financed mainly by credit lines obtained from Correspondent Banks.

At the end of the first half, approximately 107 American, European and Asian Banks had extended credit lines to Bradesco.

Along the same lines, emphasis should also be given to two significant foreign trade finance facilities which were contracted with the Inter American Development Bank (IDB) and the International Finance Corporation (IFC) on April 17, 2003, permitting drawdowns of up to US$ 110 million and US$ 70 million, respectively.

The core objective of the foreign branches is to obtain funds in the international market for onlending to customers, principally through the financing of Brazilian foreign trade.

The main activity of the subsidiaries Banco Bradesco Luxembourg S.A. and Banco Mercantil de São Paulo International S.A. is to provide additional services to private banking customers and to increase foreign trade operations.

In the first six months of 2003, as well as short-term funds obtained from correspondent Banks for foreign trade financing, loans of US$ 1.587 billion on a consolidated basis were raised through public and private placements in the international capital market, earmarked for foreign trade financing and working capital loans.

This amount corresponds to a 228% increase over the same period in 2002 when the Organization obtained some US$ 483 million.

Bradesco Collection strengthens its position yearly as an authentic partner in the management of corporate business. Combining high standards of efficiency with latest-generation IT resources, Bradesco collection services are an efficient and secure tool for use by a universe of corporate entities.

Bradesco’s computer-recorded Collection services, transmitting and receiving data on a direct computer-to-computer basis, rely on one of the most advanced banking technology systems available, offering important productivity gains to companies by permitting the streamlining of services. The available services include electronic collection (computer-recorded) permitting online information consultation by user companies. This system processes approximately 98% of all documents recorded in the Bradesco collection portfolio.

Pag-For Bradesco facilitates the management of Trade Accounts Payable for more than 38 thousand companies.

Developed based on high standards of efficiency and quality, Bradesco’s tax and utility collections serve a dual purpose. On the one hand, they seek to provide customer satisfaction with appropriate and innovative solutions for the settlement of taxes, duties and contributions. On the other, they effectively interact with the different Government Departments in the federal, state and municipal spheres and with public utility concessionaires.

Bradesco’s tax and utility collection services are noted for the speed and security of the data transmitted and amounts collected.

(2)Total beneficiaries: more than 3,665 thousand retirees and pensioners (corresponding to 17.73% of all those registered with the Brazilian Institute of Social Security - INSS).
Payment via direct debit
25.298 million – January to June 2002
24.696 million – January to June 2003

With an appropriate infrastructure and specialized personnel, Bradesco offers its customers the following quality services: custody of securities, controllership, DR-Depositary Receipt and BDR-Brazilian Depositary Receipt, as well as bookkeeping services for stocks, debentures and investment fund quotas. All accredited by ISO 9001:2000.

The investments for expanding operating capacity, infrastructure, IT and telecommunications at the Bradesco Organization are designed to maintain a modern, practical and secure customer service network, characterizing the Bank as one of the world's most contemporary companies and creating added value for its customers and users at home and abroad.

One of the Bradesco Organization companies, BCN is recognized in the market as the RELATIONSHIP BANK, as a result of the high-quality customer service provided to its consumer and corporate account holders and non-account holders alike.

The BCN customer service network comprises 222 Branches throughout Brazil, a branch in Grand Cayman, as well as 95 Banking Service Posts and 98 Online Service Outlets installed on corporate customer premises and a branch of Banco Finasa S.A., wholly owned subsidiary of BCN and the self-service network consists of 884 BCN ATMs, 2,207 ATMs comprising the 24-Hour Bank Network as well as 10,564 Bradesco Day and Night ATMs, which can be used by BCN customers.

Customers also have access to two BCN Digital Branches (in São Paulo and Rio de Janeiro). These branches offer an advanced concept in phonebank services whereby products and services are sold by management teams and delivered by courier service with no need for customers to leave their homes or the office. Another phone service, the BCN Live Line, is also available to branch customers nationwide, in addition to the services offered by BCN Office Banking and BCNNet Internet Banking.

At the end of the first half, Finasa Promotora de Vendas Ltda., subsidiary of Banco Finasa S.A., had 55 Branches focused on securing customers throughout Brazil, at 12,596 registered new and used vehicle dealership outlets and in 730 stores selling furniture, home décor, IT related equipment, tourism and finishing materials, among others.

At June 30, BCN had some 845 thousand customers – 711 thousand account holders and 134 thousand non-account holders – and had issued a total of 219 thousand credit cards. Customers served by Banco Finasa S.A totaled approximately 844 thousand.

As part of the ongoing process to rationalize and decrease operating, administrative and legal costs in the pursuit to improve its competitiveness and productivity, on February 28, 2003, BCN Leasing Arrendamento Mercantil S.A. incorporated Bradesco Leasing S.A. Arrendamento Mercantil and changed its name to Bradesco BCN Leasing S.A. Arrendamento Mercantil. On April 30, the company also incorporated Finasa Leasing Arrendamento Mercantil S.A., currently pending ratification by the Brazilian Central Bank

First-half net income of BCN totaled R$ 280.8 million, an increase of 84.6% compared to the same period in 2002, corresponding to an annualized return of 35.2% on stockholders’ equity of R$ 1.7 billion. Non-recurring income for the period was recorded in the amount of some R$ 132.5 million, derived from deferred tax assets recorded on prior-year tax losses and negative bases of social contribution in Potenza Leasing S.A. Arrendamento Mercantil, a wholly owned subsidiary of BCN. Disregarding this effect, results for the six-month period totaled R$ 148.3 million and an annualized return of 19.0% on stockholders’equity

At June 30, 2003, the overall funds obtained and managed totaled R$ 24.4 billion, a 11.7% increase compared with the same period in 2002. Deposits totaled R$ 12.8 billion, an increase of 17.4%, especially Interbank deposits, with a balance of R$ 7.1 billion, and Time deposits with a balance of R$ 4.1 billion. Total funds include an amount of R$ 2.8 billion in Investment Funds, obtained by BCN Branches, managed by BRAM – Bradesco Asset Management Ltda. and administrated by Banco Bradesco S.A.

At the end of the first half, total assets were R$ 24.0 billion, a 13.5% increase over the same period in 2002.

The balance of credit operations totaled R$ 12.1 billion, including leasing operations and advances on foreign exchange contracts. Special emphasis should be given to the Consumer Sales Financing (CDC) portfolio with a balance of R$ 4.7 billion, a 26.0% increase over the balance at June 30, 2002.

According to Fitch Atlantic Ratings, BCN received the best rating among all banks operating in Brazil and Austin Rating gave Banco Finasa a maximum triple “A” rating for financial soundness and a “Low Risk”long-term rating.

The customer service segmentation strategy, based on the consumer customers’ income and investment resources, ensures that highly specialized Management teams are capable of attending account holders at all times, anticipating their every needs.

The Relationship Account continues in its position as the financial market’s most advantageous program, guaranteeing current account holders, based on their level of use of the Bank’s products and services, the benefit of an interest-free period of 12 to 18 days per month on special check account overdraft facilities or a reduction of up to 60% of the interest rates charged on overdrafts which overrun the interest-free period; free choice of repayment dates for interest on authorized overdrafts; weekly draws for cash prizes of up to R$ 60 thousand; decreases of up to 100% in bank charges and Smart Club Program points which can be converted into prizes.

Among the products and services offered to corporate customers, the most diversified range in the market, we highlight BCN Collection, BCNPag supplier payment and the BCN Payroll service, with special emphasis on the growing use of online services.

The Bank continues its important support of sports activities through the BCN Sports program, which focuses on the formation, maintenance and dissemination of women’s basketball and volleyball at 81 training centers, 49 for volleyball and 32 for basketball. At these centers, some 4,300 young athletes from 10 to 15 years of age have access to courts, uniforms, sports material, instructors and all the infrastructure required to practice these sports, completely free of charge.

Banco Finasa S.A., formerly Continental Banco S.A., a wholly owned subsidiary of Banco BCN S.A., operates in the financing segment, through the intermediation of Finasa Promotora de Vendas Ltda., which is responsible for securing new customers and preparing credit proposals.

Seeking to increase the volume of its business, in addition to the partnerships entered into in 2002 with Ford Credit and Microsoft, Banco Finasa signed an operating agreement during the first half with the Brazilian Association of Fiat Automobile Dealerships – ABRACAF, for financing vehicles sold by the associated dealerships.

At the end of June, Finasa Promotora had 55 Branches and was present in 12,596 new and used vehicle dealership outlets and 730 stores selling furniture and home decor, IT related equipment, tourism and finishing materials, among others.

In 2002, the Bank was rated for the first time by Austin Rating, receiving the maximum triple “A” rating for financial soundness and “Low Risk” for long-term transactions.

The Bank’s first-half net income was R$ 52.9 million, an annualized return of 44.6% on stockholders’equity of R$ 261.2 million.

At June 30, 2003, assets totaled R$ 4.3 billion, an increase of 37.9% over the same period in 2002. Of this amount, R$ 3.8 billion comprised funds for new and used auto financing, an increase of 43.0%, as compared to June 2002.

Auto-financing production for the first six months of 2003 totaled R$ 1.6 billion, growing by 75.8% compared to R$ 923.1 million produced for the same period in 2002.

This performance ensures that that portfolio is maintained above the levels attained following the acquisition of Banco Ford S.A.’s operations and the incorporation of the financing portfolio of Finasa S.A. Crédito Financiamento e Investimento in 2002.

BBV Banco commenced its activities in Brazil on August 28, 1998 following the acquisition by Banco Espanhol Bilbao Vizcaya (BBVA), of Banco Excel Econômico S.A. At that time, the Bank’s customer service network comprised 222 branches with 6,116 employees.

In 1999, following a turnaround process which began in the prior year, the Bank centered its strategy on the preparation of its technology infrastructure, which was to provide the basis of its expansion project forecast to commence in 2000.

From 2000 up to the end of 2001, the Bank implemented an aggressive investment plan designed to open more than 200 branches, which would effectively double its network. As a result, the Bank is now present in all of Brazil’s states and is growing steadily with the launching of differentiated customer products such as Hiperfundo, a fund in which a draw for an automobile is held every business day among investors.

In 2002, despite external market fears regarding the outcome of Brazil’s presidential election, the Bank consolidated its expansion plan with the new branches recording profitable returns much earlier than expected.

The sales process of BBV Banco to Bradesco commenced on January 10, 2003, following the signature of the “Private Business Integration Agreement and Other Accords”, by Bradesco and BBVA for the acquisition of the control of BBV Banco and its subsidiaries.

On January 20, 2003, BBV Banco opened up a data room with all the information and documentation required by Bradesco’s auditors. This audit was concluded on February 28, 2003.

Subsequent to the conclusion of the due diligence and approval of the transaction by the corresponding regulatory authorities, Bradesco assumed definitive control of BBV Banco on June 9, 2003.

The transaction was carried out through the acquisition by Bradesco of 4,631,991,278 shares of BBV Banco, owned by BBVA, of which 1,523,283,014 were common and 3,108,708,264 were preferred shares, corresponding to 49% of common capital and 99.99% of preferred capital for the amount of R$ 1,849,970,549.00.

The transaction also involved the transfer to Bradesco, as payment of capital increase through incorporation of shares, of 1,585,490,409 nominative registered shares, with no par value, of which 1,585,457,830 are common and 32,579 are preferred shares of BBV Banco, corresponding to 51% of voting capital and 25.50% of total capital, transforming BBV Banco into a wholly owned subsidiary of Bradesco, under the terms of Article 252 of Law 6,404/76.

After only five years in Brazil, BBV Banco has grown and gained an important position in the local market. With equity of R$ 2.3 billion, the Bank is the 8th largest financial institution in the Brazilian private-sector market.

In the consolidated balance sheet, at June 30, 2003, the Bank presented assets of R$ 10.1 billion and currently has one of the lowest default rates in the market: only 5.1% of the institution’s credit operations are classified from D to H, which is particularly significant considering that the market’s average default rate totals approximately 13.3%.

With R$ 3.5 billion in demand, time, interbank and savings account deposits, the Bank commenced the gradual adaptation, during the first half, of its prices to comply with Bradesco policy, decreasing accordingly its financial costs.

One of the highlights of BBV Banco product and service portfolio is Hiperfundo, a DI fund which since its launching in May 2000 has surpassed all expectations. The fund offers the added advantage of a daily draw with prizes ranging from an automobile to thousands of other smaller prizes. Up to June 30, 2003, the BBV Hiperfundo delivered a total of 787 automobiles and some 90,000 other prizes including bicycles, CD players, microsystems, etc.

At the end of the first half, BBV Banco had a total of 458,802 accounts of which 395,906 are held by consumer and 62,896 by corporate customers.

At the end of the first half, BBV Banco had a total of 597,731 accounts, of which 549,788 are held by consumer and 47,943 by corporate customers.

At June 30, 2003, a total of 146,065 BBV Banco customers were internet banking service users.

At the end of the first half, BBV Banco had a total of 439 branches distributed as follows:

At the end of the six-month period, the Group had 4,677 employees, 4,638 at BBV Banco and 39 at the subsidiaries.

At the end of the first half, Bradesco Corretora maintained its outstanding position in the Capital Market.

We present below a summary of the company’s main activities for the six-month period:

Bradesco Corretora ended the 1st half of 2003, among the 10 most important brokerage firms, out of more than 90 operating in the São Paulo Stock Exchange (BOVESPA). During this period, services were provided to 27,045 investors and 117,172 buy and sell orders were carried out for a total financial volume of R$ 4.4 billion. The Corretora participates with BOVESPA in the “Bovespa vai até você” campaign in an important effort to raise public awareness regarding the benefits of investing in the stock market.

Bradesco Corretora negotiated 962.4 thousand contracts in the Mercantile and Futures Exchange (BM&F) for a financial volume of R$ 127.6 billion, ranking the Corretora among the 20 most important brokerage firms out of more than 100 participants. The Corretora has centered its efforts on the continued expansion of its business, as well as promoting the futures market. For example, in the agricultural area it acts directly in the country’s main production centers, through visits, seminars and participation in agricultural fairs and expos. In conjunction with the BM&F, the company sponsored visits to the exchange and Bradesco Corretora in São Paulo by investors from all over the country. At the same time, the company hosted numerous visits by farmers, teachers, opinion-makers and brokers from the physical commodities market.

Online web trading for the six-month period totaled 70,765 orders with a financial volume of R$ 391.6 million, representing 5.3% of all Home-Broker operations carried out in BOVESPA and placing the Corretora fourth in the overall ranking. The customer base increased by 11.8% with more than 1,691 new customers registered during the period and more than 18,195 e-mails received.

As a result of its role in Public Offerings of Share Purchases, Special Operations, Stock Swapping Auctions and Privatization Auctions, Bradesco Corretora continues in its important market position, with financial volume of R$ 27.8 million for the six-month period.

Stockholders' equity at the end of the six months increased to R$ 93.8 million, corresponding to 54.3% of total assets of R$ 172.8 million.

Bradesco Securities, Inc., a wholly owned subsidiary of Bradesco, operates as a broker dealer in the United States. The company's activities are focused on the intermediation of share purchases and sales, with emphasis on ADR operations. The company is also authorized to operate with Bonds, Commercial Paper and Certificates of Deposit, among others, and to provide Investment Advisory services. This Bradesco initiative was motivated by more than 90 programs involving ADRs of Brazilian companies traded in New York and by the growing interest of foreign investors in the emerging markets and is designed to offer support for global economy investors who invest part of this flow in countries such as Brazil.

Designed to provide leverage to its brokerage transactions abroad, Bradesco Securities, Inc. increased company capital in the amount of US$ 20 million in May 2003.

At June 30, 2003, the Organization had the following leasing companies: Bradesco BCN Leasing S.A. Arrendamento Mercantil, Boavista S.A. Arrendamento Mercantil, Potenza Leasing S.A. Arrendamento Mercantil, Bancocidade Leasing Arrendamento Mercantil S.A. and BBV Leasing Brasil S.A.

Designed to achieve higher levels of competitiveness and productivity, consequently rationalizing and reducing operating, administrative and legal costs, the following corporate restructuring was carried out by Bradesco Organization during the first half of 2003:

The increase in stockholders’ equity between 2002 and 2003 was mainly derived from a capital increase of R$ 500 million in Potenza Leasing S.A. Arrendamento Mercantil, in November 2002, and deferred tax assets recorded in the latter as a result of tax losses and negative basis of social contribution in the amount of R$ 132.5 million, in March 2003. Boavista S.A. Arrendamento Mercantil also received a capital increase of R$ 180 million in November 2002.

Bradesco's leasing operations are carried out through its subsidiaries: Bradesco BCN Leasing S.A. Arrendamento Mercantil, Banco Finasa S.A. and BBV Leasing Brasil S.A.

At June 30, 2003, leasing operations totaled R$ 1,513.7 million (present value), as well as an amount of R$ 28.2 million receivable in operating leases.

According to the Brazilian Association of Leasing Companies (ABEL), Bradesco is leader in the national ranking of leasing companies, with a 19.0% market share (Base date: May 2003).

Bradesco leases different types of asset, including light vehicles (cars) and heavy vehicles (buses and trucks), airplanes, machinery, equipment and computers.

The following pie graph presents the composition of Bradesco's consolidated leasing portfolio by types of asset:

On June 11, 2002, all the quotas of Administradora de Consórcios Potenza Ltda. were transferred from Banco BCN S.A. to Banco Bradesco S.A.

On June 24, 2002, approval was given to change the company’s name to Bradesco Consórcios Ltda. and its principal place of business to Osasco, SP.

These acts were ratified by the Brazilian Central Bank (BACEN) on July 22, 2002.

On December 9, 2002, Bradesco Consórcios commenced the sale of consortium quotas exclusively to Bradesco Organization employees.

On January 21, 2003, Bradesco commenced the sale of consortium quotas to its account holders and non-account holders.

At June 30, 2003, a total of 31 thousand consortium quotas had been sold, with billings in excess of R$ 1.0 billion.

The first online meeting of Bradesco Consortium holders was held on February 26, 2003 and by June 30, 2003, 10 meetings had been held.

Up to June 30, 2003, a total of 841 items had been received by consortium group participants.

The company uses all the facilities of the Bradesco Organization customer service network to commercialize the products offered.

The company’s mission is to manage consortium plans and groups for consumer and corporate purchasers regardless of whether they are Bradesco account holders or not, and to operate in the light and heavy vehicle (including cars, trucks, tractors and combine harvesters) and real estate segments, maintaining excellent standards in the quality of the services offered and in consortium system practice, pursuant to regulations determined by the Brazilian Central Bank and in line with the Bradesco Organization’s philosophy.

The Bradesco Organization’s entry into this segment is part of its strategy to offer the most complete range of product and services possible to its customers.

Providing all income brackets with the opportunity to purchase items through the consortium quota system, filling a market lacuna at accessible prices and considering especially regarding real estate products, the country’s present housing deficit.

The Consortium segment is a complementary niche to regular banking activities and at present there are 3 million (*) consortium group members nationwide. According to information gathered, only 15% (*) of vehicles sold in Brazil are sold via the Consortium method.

At present an average 64.3 thousand (*) participants receive items monthly through this purchase method as compared to 61.3 thousand 12 months ago, an increase of 4.7% (*), including first homes and new cars and more than 20 other products sold through the consortium quota system.

In April, sales reached a record 134.9 thousand plans, a 12.4% increase over the balance for March, with Bradesco Consórcios making an important contribution towards this growth.

(*) Source: ABAC – Brazilian Association of Consortium Group Management Companies.

Bradesco plays a central role in this segment, providing Brazilians with more opportunities to acquire goods and real estate.

As a result of this activity our medium and long-term results will undoubtedly grow, with positive effects on our capacity to secure new customers.

Bradesco Seguros secured R$ 3.5 billion in premiums and maintained its industry leadership with a 25.0% market share. An amount of R$ 14.2 billion was secured in premiums by this sector up to May 2003.

In the first half of 2003, the Company’s earned premiums grew by 15.7% compared to the same period in 2002.

N.B. Retained claims (from 2002, excluding Life redemptions and from 2003 VGBL redemptions)/Earned premiums.

Up to June 30, 2003, the number of customers grew by 5.4% for the six-month period in comparison to the same period in 2002.

Bradesco Saúde continues to maintain its outstanding market position, especially in the corporate health insurance segment. Brazilian consumers are increasingly convinced that Health and Dental Insurance are the best alternatives for meeting their medical, hospital and dental care needs. At present, Bradesco Saúde has more than 2.3 million customers.

The increasing number of beneficiaries employed by micro, small and medium companies, as well as major corporations that have contracted Bradesco Saúde, confirms the company’s high level of expertise and personalization in Corporate Insurance services, a distinct advantage in the Health Insurance market.

Approximately 11 thousand companies in Brazil have acquired Bradesco Health Insurance. Out of the 100 largest companies in Brazil, 35 are Bradesco clients in the Health and Dental Health lines and out of the country’s 10 largest companies, 60% are Bradesco Saúde clients.

Emphasis should also be given to the practical nature of the Bradesco Saúde Portal (http://www.bradescosaude.com.br), which, in addition to providing information on available products, also offers a number of services to policyholders, prospects and brokers.

The Bradesco Insurance Group occupies a leadership position in the Basic Line Brazilian market, which comprises the following main types of insurance, named and operating risks, national and international transport, oil risks, engineering risks, third-party liability and aircraft risks, among others.

In the mass market insurance segment, focusing on consumer and small and medium corporate customers, the results achieved from policy sales continue significant, particularly Bradesco Seguro Residencial Simplificado (Bradesco Simplified Residential Insurance).

In the Corporate Insurance area, the Group consolidated its leadership position, insuring business conglomerates operating in the automobile, mining, steel, oil, electrical power, agribusiness, paper and pulp, chemical, aluminum and aircraft industries, confirming the Bradesco Insurance Group’s significant presence among Brazil’s major corporations.

The Automotive and RCF (Optional Third Party Liability) line posted an important increase in the number of policyholders and the technically correct pricing policy was maintained. Emphasis should also be given to the implementation of the differentiated services which add value to products, such as discounts given through the nationwide customer service networks and the increase in the number of relationships with brokers which are carried out exclusively online via the Internet.

With R$ 591 million in accumulated premiums from January to May 2003, the Company maintained its leadership of the Auto line a 5.2% increase over the amount determined by the second-ranked company (source: SUSEP).

Since its foundation in 1981, Bradesco Vida e Previdência has recorded consistently high levels of growth confirming its leadership of a sector which from the early nineties has shown considerable potential for expansion.

Income from its private pension plans has grown some 43.3% per year over the last five years, enabling the company to maintain its leadership position with 38.3% of the market, the result of a sound product development policy structured around innovative and flexible options.

Products bearing the Bradesco Vida e Previdência hallmark reflect the company's efforts to remain ahead of its time, sensitive to future trends.

Providing a secure option for participants, policyholders and beneficiaries, Bradesco Vida e Previdência has recorded an increasing growth rate in the volume of its technical reserves. During the first half, technical reserves presented an increase of 20.5% over the same period in 2002, highlighting the company's capacity to meet the commitments assumed.

Bradesco Vida e Previdência's unquestionable commitment to providing a care-free future for its participants has ensured its ranking as Brazil's largest listed supplementary pension plan company.

Reflecting the growth in income from private pension plans, Bradesco Vida e Previdência ended the first half of 2003 with a high level of capitalization. The investment portfolio presents an ongoing growth in financial volume and results, well above the required volume of technical reserves.

The company's success and commitment to the implementation of its policies are confirmed by its 52.1% share of this segment, one of most important market indicators.

During the six-month period, Bradesco Vida e Previdência signed new contracts for individual and company plans, which accounted for a 4.6% increase in the number of participants compared to the performance recorded for the same period in 2002. Total plan participants surpassed the 1.2 million mark.

Bradesco Capitalização’s outstanding position in the premium bond market is the result of its transparent operating policy, which is focused on the deployment of products in line with potential consumer demand.

The company is consolidating its outstanding position in diverse regions and holds a leadership position in four Brazilian states, according to the latest figures for May published by SUSEP. The company’s market share in these states was as follows: 32.7% in Bahia, 27.9% in Amazonas, 26.5% in Santa Catarina and 23.3% in São Paulo.

In pursuit of a bond which is suited to its customers’ different profiles and budgets, the company developed a number of products varying in accordance with the type of payment (single or monthly), contribution terms, regularity of draws (weekly or monthly) and related prize amounts. This phase brought the company closer to the general public and consolidated the success of its “Pé Quente” (Lucky Bond) savings bond series.

Bradesco Capitalização was the first private savings bond company in Brazil to receive ISO9002 accreditation and in December 2002 this certificate was upgraded to the 2000 Version. ISO 9001:2000. This accreditation from Fundação Vanzolini attests to the management quality of Bradesco savings bonds and confirms the principles on which their creation was based: good products, good services and continuous growth.

With its fast-growing volume of technical reserves, Bradesco Capitalização surpassed the mark of R$ 1.7 billion in the first six months of 2003, presenting a growth rate of 24.47% compared to the same period in 2002. According to data from SUSEP for May 2003, the company has 21.78% of the total market volume of technical reserves.

These results transmit confidence and confirm the company’s financial soundness and capacity to honor the commitments assumed with its customers.

In line with its customer loyalty building policy focused on customer service and the offer of innovative products, the number of Bradesco Capitalização customers increased by 30% in the first six-month period of 2003, compared to the same period in 2002, totaling 2.7 million. The outstanding savings bond portfolio also presented a significant 25% increase over the same period in the prior year, reaching a total of 7.6 million outstanding bonds.

Bradesco Capitalização was highlighted in an article published in the April edition of the Conjuntura Econômica magazine, in which it was ranked as leader of its corresponding sector, based on a study conducted by Austin Rating. The methodology used to rank the best companies considered indicators such as stockholders’ equity, liquidity and profitability.

Bradesco Capitalização received the Top de Marketing 2003 award, given by the Brazilian Association of Sales and Marketing Directors - ADVB for the following case: “Título de Capitalização Pé Quente Reserva Especial em proeza inédita: quebra paradigma e conquista público de alta renda”. This award is designed to give proper recognition for the work of organizations which demonstrate excellence in sustaining their products, services or trademarks through innovative and consistent marketing tactics.

Bradesco was rated best financial institution in a poll carried out by IBOPE for the National Association of Construction Material Retailers (Anamaco). This traditional award reveals the best institution based on customer satisfaction levels. IBOPE interviewed 1,352 retailers in all of Brazil’s states.

For the second year running, Bradesco was considered best Brazilian Retail Bank by Austin Rating/ Conjuntura Econômica magazine, published by Fundação Getulio Vargas. The Bank received the Prêmio Comunicação 2002 award as Best Advertiser of the Year, from the Brazilian Advertising Association (ABP), the main representative of Brazilian advertising activities.

In the second quarter of this year, Bradesco Investment Funds took the Top de Gestão de Fundos 2003 award by Valor Econômico newspaper, in the Derivative and Balanced funds category.

Bradesco also received an award for excellence in customer service Prêmio Consumidor Moderno de Excelência em Serviços ao Cliente 2003. According to a study prepared by the Business Standard magazine in partnership with the Center for Banking Excellence of Fundação Getulio Vargas in São Paulo, Bradesco Internet Banking was rated best Brazilian Internet Banking service for the second year in a row.

Bradesco also received the e-finance 2003 award given by the Executivos Financeiros magazine in three categories: Internet Banking with ShopCredit, Corporate Internet Banking with Bradesco Net Empresa and Self-service/Security with Letras de Acesso Bradesco Dia e Noite.

Confirmed as overall winner of the iBest 2003, the Bradesco Organization received eight awards at this year’s “internet oscars” ceremony. For the seventh consecutive year, Bradesco was ranked first place in the “Banks” category. Bradesco Seguros won the Grand Prix as the most voted site at the 2003 awards.

Bradesco was also ranked first place among “Brazil’s 100 most-wired Companies” by INFO Exame magazine which rates companies at the vanguard in terms of Information Technology (IT). As well as leading the overall ranking, Bradesco was also rated leader in two other categories: the most-wired banking sector company, among 17 economic segments under analysis and leader in São Paulo in the ranking which rates Brazil’s six most industrialized states.

Bradesco is a benchmark in social responsibility, implementing innumerous sociocultural projects and events which help to promote citizenship values in Brazil.

In the first six months of 2003, Bradesco gave support to innumerous social projects. These comprised regional, sector or professional venues, including trade fairs, seminars, congresses and community events.

As part of its strategy to provide incentives to agricultural development in Brazil’s interior, Bradesco was present in events such as the Agricultural Fair in Londrina, Paraná, the Cerrado Agrishow in Rondonópolis, Mato Grosso and the Agrishow in Ribeirão Preto, São Paulo, which is the third largest farming technology exposition in the world. The Organization was also present at the International Machinery and Equipment Fair (Feimafe), recognized as one of the most traditional and important fairs in this segment.

Bradesco sponsored a number of important cultural events during the period, including the Parintins Folklore Festival in Amazonia, one of the Country’s most important cultural expressions, as well as the Summer Festival and Carnival in Salvador and the St John’s Day Festival in Caruaru, in Pernambuco, events which attract an increasing number of visitors each year.

For the fourth year running, Bradesco Seguros sponsored the Rio de Janeiro Book Bienal, now in its 11th year. The insurance company presented a number of books published under its sponsorship including “Aquarelas – Brasil XIX: Paisagem, Flores e Frutos” (19th Century Brazilian Watercolors: Landscapes, Flowers and Fruit), “Poesia Completa – Carlos Drummond de Andrade” (The Complete Anthology), “Documentos Históricos do Brasil” (Historical Documents of Brazil), among others. Bradesco Seguros was also one of the most important sponsors of the Dell'Arte series of International Classical Concerts which brought to Brazil the Russian Chamber Ensemble from Moscow, the Dutch ensemble Combattimento Consort from Amsterdam, specialized in baroque music and the Symphony Orchestra Giuseppe Verdi from Milan, one of the most important symphony orchestras in Italy, with special guest pianist, Nelson Freire.

In the educational area, the Bradesco Foundation extended its activities with the opening of its 39th school in Boa Vista, Roraima, the only state in Brazil still without a Bradesco Foundation school. More than 105 thousand students receive free education at the Foundation’s schools all over Brazil.

In the second quarter, BCN organized its XIII Sports Training Center Festival, with basketball and volleyball games which attracted more than 7,000 people including students, parents, instructors and professional athletes in Osasco, São Paulo. Created 15 years ago, the BCN project provides the opportunity for thousands of young girls from 10 to 15 years of age to practice sports. BCN’s main women’s professional volleyball team was the 2002/2003 super-league champion.

The Bradesco Foundation, a not-for-profit entity, headquartered at Cidade de Deus, Osasco (SP), was founded in 1956 and declared to be of Federal Public Utility by Decree 86,238, on July 30, 1981.

Convinced that education lies at the roots of equal opportunity and personal and collective fulfillment, the Bradesco Foundation currently maintains 39 schools installed as priority in the country’s most underprivileged regions, in all of Brazil’s states and in the Federal District.

Through its pioneer action in private social investment, the Bradesco Foundation’s chief mission is to provide formal quality education to children, young people and adults ensuring that they receive the qualifications required to achieve personal fulfillment through their work and the exercising of their rights and duties as citizens.

Accordingly, the Foundation has expanded its activities yearly, increasing the number of students matriculated in its schools from 13,080 to more than 103,000 over the last twenty-three years. The Bradesco Foundation schools offer education free-of-charge at pre, junior and high school levels, as well as basic professional and technical training in IT, electronics, industry, management and agriculture and livestock raising. Distance learning is also offered as part of its Youth and Adult Education programs.

The 39th Bradesco Foundation School, in the city of Boa Vista, Roraima, opened its doors on February 6 this year with modern facilities and the capacity to attend more than 1,200 students.

On March 9, all the Foundation Schools took part in Brazil’s “National Voluntary Action Day”. More than 190 thousand people benefited from activities promoted in the leisure and entertainment, education, culture, sports, prevention and healthcare, community development and citizenship action areas. Four thousand volunteers participated, including students, parents, teachers and professionals from partner organizations, providing more than 200 quality services to community members residing in the vicinity of the Foundation schools.

During the period, Bradesco announced the construction of another Bradesco Foundation School in the town of Osasco (SP), located in the Jardim Conceição neighborhood, the school will have the capacity to attend approximately 2,000 students from the local community.

The majority of the Foundation's educational units are located on the outskirts of major cities or in rural areas where there is a significant lack of educational and welfare assistance. Thousands of students in all four corners of Brazil are given the opportunity to study at the Foundation schools.

The Bradesco Foundation activities are funded exclusively by resources from its own income and donations made by the Bradesco Organization Companies.

We have examined, in accordance with auditing standards generally accepted in Brazil, the financial statements of Banco Bradesco S.A. and the consolidated financial statements of Banco Bradesco S.A. and its subsidiaries as of and for the semesters ended June 30, 2003 and 2002 and have issued our an unqualified report, dated July 28, 2003.

Our examinations were made for the purpose of forming an opinion on the financial statements of Banco Bradesco S.A., and on the consolidated financial statements of Banco Bradesco S.A. and its subsidiaries taken as a whole. In connection with our examinations, we have performed a review of the supplementary account information included in the Report on Economic and Financial Analysis that is presented exclusively for the purpose of additional analysis and is not a required part of the financial statements.

Based in our examinations, we are not aware of any significant modifications that should be made to the supplementary account information for it to be presented adequately, in all material respects, in relation to the financial statements taken as a whole.

(A free translation of the original in Portuguese
prepared in conformity with accounting practices
a dopted in Brazil)

Banco Bradesco SA
Consolidated Balance Sheet - In thousands of reais
		DECEMBER
ASSETS	06/2003	2002	2001	2000	1999	1998
CURRENT ASSETS AND LONG-TERM RECEIVABLES	149,315,815	137,301,711	105,767,892	90,693,025	75,136,910	62,635,794
FUNDS AVAILABLE	1,772,881	2,785,707	3,085,787	1,341,653	827,329	709,803
INTERBANK INVESTMENTS	20,995,788	21,472,756	3,867,319	2,308,273	2,590,599	5,167,038
Open market investments	17,514,259	19,111,652	2,110,573	1,453,461	1,890,828	4,449,356
Interbank deposits	3,482,756	2,370,345	1,760,850	854,815	699,771	718,125
Provision for losses	(1,227)	(9,241)	(4,104)	(3)	--	(443)
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS	42,795,532	37,003,454	40,512,688	33,119,843	29,196,857	19,705,200
Own portfolio	35,653,566	29,817,033	27,493,936	21,743,924	20,950,342	12,821,409
Subject to repurchase agreements	874,865	1,497,383	9,922,036	10,822,637	5,987,713	5,759,959
Subject to negotiation and intermediation of securities	--	--	526,219	9,394	157	295
Restricted deposits - Brazilian Central Bank	3,568,688	3,536,659	1,988,799	421,727	2,359,466	1,214,811
Privatization currencies	83,008	77,371	25,104	9,526	7,241	5,839
Subject to collateral provided	1,846,663	1,836,169	715,858	783,501	449,536	108,200
Derivative financial instruments	768,742	238,839	581,169	--	--	--
Allowance for mark-to-market	--	--	(740,433)	(670,866)	(557,598)	(205,313)
INTERBANK ACCOUNTS	14,809,374	12,943,432	5,141,940	5,060,628	6,454,553	5,536,959
Unsettled payments and receipts	591,809	16,902	10,118	6,920	7,635	189,329
Restricted deposits:
- Brazilian Central Bank	13,791,640	12,519,635	4,906,502	4,848,668	6,184,959	5,194,724
- National Treasury - Rural funding	578	578	712	660	599	779
- National Housing System - SFH	384,536	374,177	217,518	197,191	142,653	149,826
Interbank onlendings	--	--	--	2,024	116,733	1
Correspondent banks	40,811	32,140	7,090	5,165	1,974	2,300
INTERDEPARTMENTAL ACCOUNTS	215,081	191,739	176,073	111,636	49,018	38,661
Internal transfer of funds	215,081	191,739	176,073	111,636	49,018	38,661
CREDIT OPERATIONS	41,126,372	39,705,279	35,131,359	30,236,106	21,535,633	20,794,541
Credit operations:
- Public sector	196,314	254,622	199,182	275,479	154,266	111,141
- Private sector	44,718,813	42,842,693	37,689,671	32,244,482	22,848,128	21,553,453
Allowance for loan losses	(3,788,755)	(3,392,036)	(2,757,494)	(2,283,855)	(1,466,761)	(870,053)
LEASING OPERATIONS	1,392,775	1,431,166	1,567,927	1,914,081	1,712,343	1,688,761
Leasing receivables:
- Public sector	--	45	138	160	800	1,667
- Private sector	3,077,565	3,141,724	3,248,050	3,813,369	3,515,396	3,410,990
Unearned lease income	(1,556,528)	(1,560,278)	(1,557,642)	(1,760,305)	(1,490,803)	(1,485,780)
Allowance for leasing losses	(128,262)	(150,325)	(122,619)	(139,143)	(313,050)	(238,116)
OTHER RECEIVABLES	25,217,163	20,891,869	15,685,433	16,226,725	12,420,787	8,491,994
Receivables on guarantees honored	1,363	1,577	1,131	2,020	--	645
Foreign exchange portfolio	13,130,513	10,026,298	5,545,527	6,417,431	3,375,563	2,488,263
Income receivable	259,719	249,849	187,910	191,873	109,734	113,814
Negotiation and intermediation of securities	164,642	175,185	761,754	497,655	839,758	320,821
Specific credits	--	--	146,919	124,776	206,952	164,770
Insurance premiums receivable	1,142,694	920,724	995,662	818,773	994,718	825,162
Sundry	10,709,980	9,640,966	8,107,714	8,258,402	7,021,988	4,685,384
Allowance for other losses	(191,748)	(122,730)	(61,184)	(84,205)	(127,926)	(106,865)
OTHER ASSETS	990,849	876,309	599,366	374,080	349,791	502,837
Other assets	724,789	679,515	415,484	409,771	406,910	513,407
Allowance for losses	(255,535)	(243,953)	(164,290)	(171,876)	(166,447)	(199,753)
Prepaid expenses	521,595	440,747	348,172	136,185	109,328	189,183
PERMANENT ASSETS	5,173,459	5,483,319	4,348,014	4,185,458	5,186,682	4,702,082
INVESTMENTS	494,593	512,720	884,773	830,930	2,453,425	2,306,500
Investments in associated companies:
- Local	349,332	395,006	742,586	689,002	2,044,120	1,400,144
Other investments	506,058	439,342	452,871	525,316	753,901	1,148,977
Allowance for losses	(360,797)	(321,628)	(310,684)	(383,388)	(344,596)	(242,621)
PROPERTY AND EQUIPMENT IN USE	2,638,583	2,523,949	2,152,680	2,017,093	1,683,069	1,562,430
Land and buildings in use	1,707,658	1,748,409	1,475,581	1,491,847	1,415,720	1,395,530
Other fixed assets	3,847,718	3,459,950	2,988,008	2,705,577	2,285,918	2,169,300
Accumulated depreciation	(2,916,793)	(2,684,410)	(2,310,909)	(2,180,331)	(2,018,569)	(2,002,400)
LEASED ASSETS	27,471	34,323	46,047	10,688	17,026	22,351
Leased assets	50,458	51,198	51,214	19,421	18,451	38,860
Accumulated depreciation	(22,987)	(16,875)	(5,167)	(8,733)	(1,425)	(16,509)
DEFERRED CHARGES	2,012,812	2,412,327	1,264,514	1,326,747	1,033,162	810,801
Organization and expansion costs	1,242,459	1,037,559	874,970	731,717	477,058	553,354
Accumulated amortization	(681,030)	(568,525)	(481,127)	(391,417)	(190,510)	(207,627)
Goodwill on acquisition of subsidiaries, net of amortization	1,451,383	1,943,293	870,671	986,447	746,614	465,074
T O T A L	154,489,274	142,785,030	110,115,906	94,878,483	80,323,592	67,337,876

Banco Bradesco SA
Consolidated Balance Sheet - In thousands of reais
		DECEMBER
LIABILITIES AND STOCKHOLDERS' EQUITY	06/2003	2002	2001	2000	1999	1998

CURRENT AND LONG-TERM LIABILITIES	121,965,411	114,859,776	87,352,076	77,006,572	66,345,011	56,020,611
DEPOSITS	56,822,206	56,363,163	41,083,979	36,468,659	34,723,630	28,249,838
Demand deposits	11,524,911	13,369,917	8,057,627	7,500,518	6,803,429	4,976,836
Savings deposits	20,736,387	20,730,683	18,310,948	17,835,745	17,244,520	16,171,727
Interbank deposits	39,537	23,848	40,446	568,416	468,950	136,955
Time deposits	24,521,371	22,238,715	14,674,958	10,563,980	10,206,731	6,964,320
DEPOSITS RECEIVED UNDER SECURITY REPURCHASE AGREEMENTS	18,568,676	16,012,965	14,057,327	12,108,350	7,814,288	9,307,113
Own portfolio	1,882,930	915,946	12,178,855	10,696,199	5,973,260	5,729,892
Third-party portfolio	16,685,746	12,188,054	1,878,472	1,412,151	1,841,028	3,577,221
Unrestricted portfolio	--	2,908,965	--	--	--	--
FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES	5,744,955	3,136,842	4,801,410	4,111,171	4,628,344	2,067,118
Exchange acceptances	--	1,214	--	--	--	2
Mortgage notes	676,718	384,727	780,425	741,248	452,379	262,165
Debentures	30,524	100,369	48,921	1,039	1,043,125	44,800
Securities issued abroad	5,037,713	2,650,532	3,972,064	3,368,884	3,132,840	1,760,151
INTERBANK ACCOUNTS	523,626	606,696	192,027	107,129	59,607	42,839
Interbank onlendings	60	35,686	4,519	1,059	10,016	28,191
Correspondent banks	523,566	571,010	187,508	106,070	49,591	14,648
INTERDEPARTMENTAL ACCOUNTS	1,210,963	1,337,729	762,505	904,188	879,592	573,526
Third-party funds in transit	1,210,963	1,337,729	762,505	904,188	879,592	573,501
Internal transfer of funds	--	--	--	--	--	25
BORROWINGS	7,711,502	9,390,630	7,887,154	6,463,555	4,864,414	4,035,313
Local borrowings - official institutions	1,882	3,368	2,979	9,737	10,178	5,147
Local borrowings - other institutions	207,576	216,812	230,468	170,775	138,279	31,932
Foreign currency borrowings	7,502,044	9,170,450	7,653,707	6,283,043	4,715,957	3,998,234
LOCAL ONLENDINGS - OFFICIAL INSTITUTIONS	6,832,327	7,000,046	5,830,633	5,096,604	4,123,486	3,571,562
National Treasury	53,650	62,187	--	--	--	--
National Bank for Economic and Social Development (BNDES)	3,033,698	3,437,319	3,067,220	2,589,284	1,650,243	987,997
Federal Savings Bank (CEF)	465,073	453,803	433,381	405,264	388,109	331,010
Government Agency for Machinery and Equipment Financing (FINAME)	3,278,210	3,045,176	2,321,508	2,090,374	2,064,153	2,238,674
Other institutions	1,696	1,561	8,524	11,682	20,981	13,881
FOREIGN ONLENDINGS	28,541	47,677	316,283	108,178	185,774	1,094,207
Foreign onlendings	28,541	47,677	316,283	108,178	185,774	1,094,207
DERIVATIVE FINANCIAL INSTRUMENTS	309,789	576,697	111,600	--	--	--
OTHER LIABILITIES	24,212,826	20,387,331	12,309,158	11,638,738	9,065,876	7,079,095
Collection of taxes and other contributions	852,992	108,388	181,453	128,785	113,693	135,394
Foreign exchange portfolio	7,853,540	5,002,132	1,343,769	2,439,657	1,029,963	1,045,553
Social and statutory payables	581,099	666,409	572,265	560,533	603,405	382,676
Taxes and social security contributions	4,060,932	4,376,031	3,371,127	3,094,628	2,665,681	2,168,827
Negotiation and intermediation of securities	133,722	109,474	1,307,385	592,395	914,127	506,767
Technical reserves for insurance, private pension plans and savings bonds	2,874,761	2,362,861	1,005,793	689,891	659,450	529,288
Subordinated debt	3,337,745	3,321,597	969,842	--	--	--
Sundry	4,518,035	4,440,439	3,557,524	4,132,849	3,079,557	2,310,590
TECHNICAL RESERVES FOR INSURANCE, PRIVATE PENSION PLANS AND SAVINGS BONDS	19,857,515	16,792,618	12,847,633	9,648,174	6,904,469	4,740,741
DEFERRED INCOME	36,987	15,843	9,020	34,632	17,543	33,195
Deferred income	36,987	15,843	9,020	34,632	17,543	33,195
MINORITY INTEREST IN SUBSIDIARIES	107,257	271,064	139,231	96,903	287,350	222,330
STOCKHOLDERS' EQUITY	12,522,104	10,845,729	9,767,946	8,092,202	6,769,219	6,320,999
Capital:
- Local residents	6,693,955	4,960,425	4,940,004	5,072,071	4,206,644	3,659,692
- Foreign residents	306,045	239,575	259,996	74,429	58,856	50,626
Unpaid capital	--	--	--	(400,500)	(465,500)	(246,000)
Capital reserves	7,890	7,435	7,435	19,002	5,643	11,756
Revenue reserves	5,520,297	5,629,142	4,560,511	3,327,200	2,963,576	2,844,925
Mark-to-market adjustment - securities and derivatives	(6,083)	9,152	--	--	--	--

STOCKHOLDERS' EQUITY MANAGED BY THE PARENT COMPANY	12,629,361	11,116,793	9,907,177	8,189,105	7,056,569	6,543,329
T O T A L	154,489,274	142,785,030	110,115,906	94,878,483	80,323,592	67,337,876

Banco Bradesco S.A
Consolidated Statement of Income - In thousands of reais
	YEAR
	2002	2001	2000	1999	1998

INCOME FROM LENDING AND TRADING ACTIVITIES	31,913,379	21,411,673	15,519,008	18,286,815	11,935,162

Credit operations	15,726,929	11,611,236	7,787,745	9,602,701	6,623,789
Leasing operations	408,563	420,365	512,962	730,929	425,321
Security transactions	9,527,663	7,367,600	6,122,486	5,875,823	3,823,626
Financial income on insurance, private pension plans and saving bonds	3,271,913	--	--	--	--
Derivative financial instruments	(2,073,247)	(270,572)	--	--	--
Foreign exchange transactions	4,456,594	2,045,092	872,234	1,776,925	572,104
Compulsory deposits	594,964	237,952	223,581	300,437	490,322

EXPENSES	23,259,783	13,312,726	9,132,137	12,821,198	7,441,180
Interest and charges on:
Deposits	10,993,328	6,986,027	5,521,407	4,954,854	4,430,881
Price-level restatement and interest on technical reserves for insurance, private pension plans and saving bonds	2,241,282	--	--	--	--
Borrowings and onlendings	7,194,161	4,316,682	2,158,725	5,819,063	1,414,272
Leasing operations	12,486	--	93	18,852	2,985
Provision for loan losses	2,818,526	2,010,017	1,451,912	2,028,429	1,593,042

INCOME FROM FINANCIAL INTERMEDIATION	8,653,596	8,098,947	6,386,871	5,465,617	4,493,982

OTHER OPERATING INCOME (EXPENSES)	(6,343,850)	(5,324,166)	(4,647,041)	(4,404,370)	(3,390,095)

Commissions and fees	3,711,736	3,472,560	3,042,699	2,099,937	1,774,624
Retained insurance premiums, private pension plans and savings bonds	10,134,873	8,959,259	6,919,942	5,975,488	5,014,830
Change in technical reserves for insurance, private pension plans and savings bonds	(2,784,647)	(3,492,217)	(3,001,118)	(2,341,648)	(1,392,136)
Claims - insurance operations and savings bond redemptions	(4,335,895)	(3,996,108)	(2,866,389)	(2,844,171)	(2,631,300)
Insurance and pension plan selling expenses	(667,527)	(689,352)	(645,020)	(635,351)	(518,390)
Expenses with pension plan benefits and redemption	(1,688,639)	(1,369,424)	(912,784)	(557,608)	(422,756)
Personnel expenses	(4,075,613)	(3,548,805)	(3,220,607)	(2,783,627)	(2,641,801)
Other administrative expenses	(4,028,377)	(3,435,759)	(2,977,665)	(2,566,657)	(2,158,685)
Tax expenses	(847,739)	(790,179)	(670,138)	(651,801)	(319,537)
Equity in the earnings of associated companies	64,619	70,764	156,300	127,100	157,223
Other operating revenue	1,320,986	1,326,459	902,807	1,069,562	560,319
Other operating expenses	(3,147,627)	(1,831,364)	(1,375,068)	(1,295,594)	(812,486)

OPERATING INCOME	2,309,746	2,774,781	1,739,830	1,061,247	1,103,887

NON-OPERATING INCOME (EXPENSES), NET	186,342	(83,720)	(123,720)	(224,874)	(263,696)

INCOME BEFORE TAXES AND PROFIT SHARING	2,496,088	2,691,061	1,616,110	836,373	840,191

PROVISION FOR INCOME TAX AND SOCIAL CONTRIBUTION	(460,263)	(502,257)	(258,776)	307,186	240,203

NON-RECURRING/EXTRAORDINARY INCOME	--	--	400,813	--	--

MINORITY INTEREST IN SUBSIDIARIES	(13,237)	(18,674)	(17,982)	(38,753)	(67,974)

NET INCOME	2,022,588	2,170,130	1,740,165	1,104,806	1,012,420

RETURN ON STOCKHOLDERS' EQUITY	18.65%	22.22%	21.50%	16.32%	16.02%

Banco Bradesco S.A
			Consolidated Statement of Income - In thousands of reais
	2003		2002				2001
	2nd Qtr	1st Qtr	4th Qtr	3rd Qtr	2nd Qtr	1st Qtr	4th Qtr	3rd Qtr

INCOME FROM LENDING AND TRADING ACTIVITIES	5,098,432	7,083,258	3,083,730	15,811,393	8,521,386	4,496,870	2,604,301	7,972,096

Credit operations	2,687,485	2,940,061	1,519,950	7,344,652	4,426,505	2,435,822	1,189,535	4,345,353
Leasing operations	65,777	77,386	74,886	127,240	116,028	90,409	62,021	117,633
Security transactions	995,040	1,790,954	(712,805)	6,319,688	3,276,536	644,244	(400,625)	3,512,339
Financial income on insurance, private pension plans and saving bonds	1,172,214	1,441,042	1,398,046	770,981	471,149	631,737	--	--
Derivative financial instruments	(360,489)	373,646	307,885	(1,585,879)	(1,120,268)	325,015	1,586,750	(1,005,751)
Foreign exchange transactions	168,153	99,498	169,630	2,706,668	1,271,208	309,088	103,954	936,425
Compulsory deposits	370,252	360,671	326,138	128,043	80,228	60,555	62,666	66,097

EXPENSES	3,068,353	4,524,772	721,442	12,877,250	6,895,132	2,765,959	182,949	5,898,611
Interest and charges on:
Deposits	1,826,314	2,669,686	(5,215)	6,049,300	3,430,308	1,518,935	53,292	3,128,332
Price-level restatement and interest on technical reserves for insurance, private pension plans and saving bonds	755,950	902,060	978,808	519,325	461,387	281,762	--	--
Borrowings and onlendings	(103,670)	141,355	(834,266)	5,409,418	2,289,540	329,469	(489,948)	2,287,172
Leasing operations	3,194	3,202	3,204	3,097	3,071	3,114	--	--
Provision for loan losses	586,565	808,469	578,911	896,110	710,826	632,679	619,605	483,107

INCOME FROM FINANCIAL INTERMEDIATION	2,030,079	2,558,486	2,362,288	2,934,143	1,626,254	1,730,911	2,421,352	2,073,485

OTHER OPERATING INCOME (EXPENSES)	(1,170,982)	(1,418,512)	(1,703,272)	(2,439,061)	(1,087,706)	(1,113,811)	(1,512,249)	(1,452,447)

Commissions and fees	1,080,345	1,012,644	991,101	934,418	925,649	860,568	874,001	839,110
Retained insurance premiums, private pension plans and savings bonds	2,908,922	2,770,492	3,243,557	2,678,997	2,262,775	1,949,544	2,641,322	2,153,652
Change in technical reserves for insurance, private pension plans and saving bonds	(737,031)	(988,335)	(1,484,011)	(874,013)	(171,237)	(255,386)	(1,310,005)	(792,203)
Claims - insurance operations and savings bond redemptions	(1,490,359)	(1,217,167)	(1,106,755)	(1,098,887)	(1,086,640)	(1,043,613)	(1,068,032)	(1,030,772)
Insurance and pension plan selling expenses	(182,499)	(180,521)	(179,671)	(167,297)	(160,390)	(160,169)	(169,032)	(177,561)
Expenses with pension plan benefits and redemption	(461,255)	(390,013)	(508,501)	(419,728)	(411,115)	(349,295)	(415,859)	(323,815)
Personnel expenses	(1,147,838)	(1,053,175)	(1,047,093)	(1,144,413)	(996,105)	(888,002)	(936,519)	(922,501)
Other administrative expenses	(1,152,697)	(1,100,913)	(1,111,005)	(1,062,951)	(1,010,760)	(843,661)	(896,004)	(890,377)
Tax expenses	(238,429)	(267,852)	(257,997)	(185,527)	(200,145)	(204,070)	(209,624)	(200,828)
Equity in the earnings of associated companies	(27,989)	(4,725)	32,855	8,660	20,864	2,240	55,230	16,835
Other operating revenue	836,658	657,403	(70,632)	731,764	385,839	274,015	435,891	345,155
Other operating expenses	(558,810)	(656,350)	(205,120)	(1,840,084)	(646,441)	(455,982)	(513,618)	(469,142)

OPERATING INCOME	859,097	1,139,974	659,016	495,082	538,548	617,100	909,103	621,038

NON-OPERATING INCOME (EXPENSES), NET	(95,872)	(681,563)	54,804	140,964	19,901	(29,327)	(36,188)	(47,426)

INCOME BEFORE TAXES AND PROFIT SHARING	763,225	458,411	713,820	636,046	558,449	587,773	872,915	573,612

PROVISION FOR INCOME TAX AND SOCIAL CONTRIBUTION	(242,190)	52,776	5,271	(231,215)	(68,457)	(165,862)	(261,664)	(35,152)

MINORITY INTEREST IN SUBSIDIARIES	(1,325)	(3,586)	(21,058)	15,486	(10,960)	3,295	(1,412)	(20,271)

NET INCOME	519,710	507,601	698,033	420,317	479,032	425,206	609,839	518,189

5 – Financial Statements, Report of the Audit Commitee and Independent Auditor´s Report

We are pleased to present the financial statements for the six-month period ended June 30, 2003 of Banco Bradesco S.A., as well as the consolidated financial statements prepared in accordance with the requirements of Brazilian corporate legislation.

The consistent macroeconomic policy practiced during the first half of 2003 prompted a significant downturn in the foreign exchange rate. While this downturn and the reduction in uncertainties regarding future projected inflation, solid export performance and import substitution sustained economic activity for the period. The presentation of the proposed reform bills at congress and the maintenance of rigid fiscal policies will allow the Brazilian Central Bank to reduce the basic interest rate, stimulating economic recovery.

On March 10, Bradesco commemorated its 60th anniversary, with an active presence in Brazilian everyday life, playing an important role in providing access to banking services and products for all income brackets and with renewed disposition to serve its customers and expand its business horizons. As a result, significant events marked the first half of the year at Bradesco, among which we highlight the following:

Bradesco reported first-half net income of R$ 1.027 billion, corresponding to R$ 0.65 per thousand shares and an annualized return of 17.08% on stockholders’ equity and 18.66% on average stockholders’ equity.

Taxes and contributions, including social security contributions, payable or accrued on the main activities carried out by the Bradesco Organization, amounted to R$ 1.634 billion, 159.06% of net income for the first half.

Monthly and interim interest attributed to own capital distributed to the stockholders totaled R$ 354.730 million. This represents R$ 0.2433002 (R$ 0.2068052, net of withholding tax), including the additional 10%, per thousand preferred shares and R$ 0.2211820 (R$ 0.1880047, net of withholding tax) per thousand common shares.

At the end of the first half, paid-up capital totaled R$ 7 billion, as a result of the incorporation of reserves in the amount of R$ 510.265 million, with no new issue of shares, approved on March 10 and 31 and on June 9; the conclusion of the capital increase process through the subscription of new shares by the stockholders, in the amount of R$ 501 million, approved on January 10 and ratified on March 31, which produced a further R$ 7.046 million in share premium determined at the auction for the placement of the remaining shares, recorded in the Capital Reserve account as Share Premium; the increase of R$ 158.735 million as a result of the attribution of new shares to the minority stockholders of Mercantil; and the increase of R$ 630 million as a result of the attribution of new shares to the stockholders of BBV Banco. Paid-up capital plus reserves of R$ 5.522 billion comprised the total stockholders’ equity of R$ 12.522 billion. Net equity per thousand shares was equivalent to R$ 7.90.

Managed stockholders’ equity corresponds to 8.17% of consolidated assets which totaled R$ 154.489 billion, a 23.89% growth rate compared to June 2002. As a result, the capital adequacy ratios were 16.36% on a consolidated financial basis and 14.48% on a consolidated economic and financial basis, accordingly, above the 11% required minimum established by National Monetary Council Resolution 2,099 of August 17, 1994, in conformity with the Basel Accord. At the end of the first half, the ratio of permanent assets to stockholders’ equity, in relation to consolidated reference equity was 43.91% on a consolidated financial basis and 31.63% on a consolidated economic and financial basis, accordingly within the maximum 50% limit.

In compliance with the provisions of Article 8 of Brazilian Central Bank Circular 3,068, of November 8, 2001, Bradesco declares that it has both the financial capacity and the intention to hold to maturity the securities classified in the ‘securities held to maturity’ category.

With a growth rate of 29.94% over the same period in 2002, overall funding obtained by the Bradesco Organization amounted to R$ 221.301 billion, at June 30 and comprised the following:

At the end of the first half, the balance of consolidated credit operations totaled R$ 53.048 billion, a 0.90% increase over the balance for the same period in the prior year and includes the following:

In the housing loan area, Bradesco provided funds during the first half for the construction and purchase of residential housing in the amount of R$ 578.150 million, comprising 9.695 properties.

Bradesco maintained its important role coordinating and intermediating the public placement of shares, debentures and promissory notes, with a total volume of R$ 2.999 billion recorded during the period, corresponding to 70.78% of all issues registered with the Brazilian Securities Commission (CVM). The Bank also gained recognition for its role as advisor in mergers and acquisitions and project finance.

The modern corporate governance practices adopted by the Bradesco Organization are chiefly designed to improve the performance of all of its activity segments. The figures posted to date confirm that this goal is being met, both in terms of increased operating efficiency and in the expansion of the Institution’s funding capacity at home and abroad.

Bradesco shares are listed in BOVESPA’s Level 1 Corporate Governance index since June 2001. Moreover, since Bradesco’s shares are traded in foreign stock exchanges, the Bank also prepares its financial statements in US-GAAP, accepted on an international basis.

The Bradesco Organization declares that, in the first six-months of 2003, no non-audit services were contracted or rendered by KPMG Auditores Independentes for an amount which exceeds 5% of total external audit costs. The policy adopted by the Organization complies with the principles designed to maintain the independence of external auditors, based on internationally accepted criteria which determine that auditors should not audit their own work, exercise management functions for their clients or promote their interests. As recommended by the Brazilian Central Bank, the independent auditors are contracted for a maximum five-year period.

At the Ordinary General Meeting of March 10, the Audit Committee was reinstated and comprises 3 full members and 3 alternates who will hold office up to 2004. At the Extraordinary General Meeting of June 9, the Bradesco stockholders made an important decision, in line with their commitment to adopt modern corporate governance practices, nominating and electing, by unanimous decision, two external members to the Board of Directors, who based on their vast experience and knowledge of the Brazilian and international markets, will undoubtedly add significant value to the already important activities of this committee.

Compliance is geared and monitored by the Board of Directors who ensure that related activities, policies and normative instructions comply with legal and regulatory standards on a consistent basis. The Board is also responsible for analyzing and approving the Compliance Reports prepared by the Internal Controls Area.

During the first half, as part of its market relationship strategy, Bradesco organized 101 internal and external meetings with analysts, 4 conference calls and 5 presentations abroad. In addition to this intense activity, Bradesco publishes its results for the half year, accompanied by the Report on Economic and Financial Analysis. All significant related information is available in real time on the Bradesco website at www.bradesco.com.br in Portuguese, English and Spanish. The Bank distributes a monthly customer news bulletin called “Cliente Sempre em Dia” with a circulation of 900 thousand copies, as well as a quarterly magazine called Revista Bradesco, also focusing its external public, with a circulation of 110 thousand copies.

At the Bradesco Organization, the analysis and control of market risks is directly subordinated to the Board of Executive Officers and the Bank’s President. The management of market risks involves a series of controls over exposure of financial positions to interest, exchange and liquidity rates, based, for the most part, on technical limits and the constant monitoring of the positions assumed. Bradesco follows a conservative policy in terms of exposure to market risks and VaR (Value at Risk) limits are defined by Senior Management and compliance therewith monitored on daily basis by a completely separate area, as are also the risks directly affecting the financial economic Group’s minimum capital requirement.

In compliance with the new Basel Accord and Brazilian regulatory agency requirements, operating risk is managed at Bradesco based on the dissemination of the Bank’s culture, policy disclosure and development of its own methodologies, models and tools, facilitating, among other factors, a decrease in the amount of regulatory capital to be subscribed. The Operating Risk Area provides support for the decisions made to enhance processes and activities based on risk perception, generating information which permits the qualitative and quantitative assessment of operating risks, identifying existing exposure levels and accordingly decreasing losses. The combination of these assessments hones the Bank’s competitive edge, by increasing the institution’s operating efficiency.

The efficient use of information is an inseparable part of the Bradesco Organization’s culture and day-to-day activities and is considered to be a key business success factor. The Corporate Information Security Policy and Guidelines cover the database, all of the IT environments, documents, files and other tools. Restricted data and information which is of exclusive interest to customers is treated internally with strict secrecy and fully protected by secure computerized systems. As well as specific staff training programs, independent reviews and updates are carried out periodically, designed to ensure compliance and maximum efficiency.

As well as seeking security, quality and liquidity in the investment of assets, minimizing risks inherent to all credit operations, the Organization’s credit policy is also designed to offer agile and profitable business and to guide the setting of operating limits and granting of credit, based on assessment policies geared by constantly improving technical parameters.

As part of this system, the Branches operate within varying limits based on their size and type of guarantee, while the specialized credit scoring systems expedite and protect the approvals process, based on strict security standards. The credit committees located at the Bank’s headquarters also play an important role, centralizing, analyzing and authorizing credit operations at amounts above the branch limits and managing this core strategic activity.

Operations are diversified, non-selective and focused on consumer and corporate customers with sound payment capacity and proven creditworthiness, ensuring that underlying guarantees are sufficient to cover the risks assumed, considering the purpose and terms of the credit granted.

The employee training programs and ongoing enhancement of technology tools ensures that financial activity is efficiently monitored, preventing use of the Organization for illegal transactions.

Operating in the insurance, private pension plan and savings bond areas, the Bradesco Insurance Group reported net income of R$ 246.691 million at june 30, 2003 and stockholders’ equity of R$ 2.888 billion. The overall premium income totaled R$ 6.058 billion, an increase of 32.76% over the same period in 2002. Insurance group customers are served by more than 29 thousand attendants at vehicle dealerships and brokers nationwide.

Based on high standards of quality, efficiency and state-of-the-art technology, at June 30, the Bradesco Organization Customer Service Network offered its customers and other users access to 9,969 service outlets:

In the social area, the Organization’s central pillar is firmly rooted in the educational program, developed by Fundação Bradesco (Bradesco Foundation), which provides education for more than 105 thousand students completely free of charge, including youth/adult education and basic professional training courses. As part of this program, the Foundation also offers its more than 49,463 infant, junior, middle and technical school pupils free meals, uniforms and school materials, as well as medical/dental care.

Following the opening this year of its new unit in Boa Vista, capital of the state of Roraima, the Bradesco Foundation has extended its reach and gained an even greater presence in Brazilian day-to-day life, and now has a total of 39 Schools, installed as a priority in Brazil’s most socially and economically deprived regions, throughout its 26 states and in the Federal District.

The Bank continued its extensive training program focused on the professional qualification and development of its staff, in the ongoing pursuit to improve the quality of its customer service and standards. During the first six months of the year 702 courses were given with 206,056 employee participations.

The results achieved confirm Bradesco’s determination and efforts to surpass expectations and offer only the very best. This headway was made possible thanks to the support and trust of our stockholders and customers and the dedicated work of our staff and other stakeholders. To all of them we offer our sincere gratitude.

Balance Sheet at June 30 - In thousands of reais

	BRADESCO		CONSOLIDATED BRADESCO

	2003	2002	2003	2002

ASSETS
CURRENT ASSETS	89,214,917	65,560,069	124,921,688	95,893,565
FUNDS AVAILABLE (Note 8)	1,536,475	1,181,744	1,772,881	2,131,331
INTERBANK INVESTMENTS (Notes 3b, 4 and 9)	29,507,264	11,335,586	20,801,911	5,281,050
Open market investments	18,765,316	5,135,646	17,514,259	4,449,842
Interbank deposits	10,742,948	6,203,216	3,288,751	834,788
Provision for losses	(1,000)	(3,276)	(1,099)	(3,580)
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (Notes 3c, 10, 34b and 34c)	6,149,006	8,372,810	37,522,845	31,974,718
Own portfolio	1,666,938	2,978,311	30,729,851	23,330,841
Subject to repurchase agreements	290,123	2,765,181	866,784	4,629,586
Restricted deposits - Brazilian Central Bank	2,545,907	2,230,183	3,549,190	3,115,224
Privatization currencies	-	-	61,002	1,619
Subject to collateral provided	1,268,743	333,923	1,786,110	656,428
Derivative financial instruments (Notes 3d and 34c)	377,295	65,212	529,908	241,020
INTERBANK ACCOUNTS (Note 12)	15,054,849	8,057,684	14,495,271	6,392,046
Unsettled payments and receipts	2,467,990	2,915,668	591,809	547,193
Restricted Deposits:
- Brazilian Central Bank	12,572,534	5,127,360	13,791,640	5,744,456
- National Treasury - Rural Funding	578	578	578	578
- National Housing System - SFH	13,433	14,054	70,433	89,995
- Interbank onlendings	-	-	-	11
Correspondent banks	314	24	40,811	9,813
INTERDEPARTMENTAL ACCOUNTS	194,738	245,575	215,081	279,189
Internal transfer of funds	194,738	245,575	215,081	279,189
CREDIT OPERATIONS (Notes 3e, 4, 13 and 34b)	20,455,113	19,799,075	29,391,052	28,533,247
Credit Operations:
- Public sector	6,094	3,426	21,707	18,650
- Private sector	22,572,518	21,541,882	32,100,330	30,878,877
Allowance for loan losses (Notes 3e, 13f and 13g)	(2,123,499)	(1,746,233)	(2,730,985)	(2,364,280)
LEASING OPERATIONS (Notes 2, 3e, 13 and 34b)	-	-	800,363	1,055,176
Leasing Receivables:
- Public sector	-	-	-	84
- Private sector	-	-	1,758,456	2,227,468
Unearned lease income	-	-	(881,841)	(1,062,208)
Allowance for leasing losses (Notes 3e, 13f and 13g)	-	-	(76,252)	(110,168)
OTHER RECEIVABLES	16,092,225	16,311,992	19,274,835	19,663,081
Receivables on guarantees honored (Note 13a-2)	1,357	1,099	1,363	1,189
Foreign exchange portfolio (Note 14a)	12,645,702	11,482,153	13,116,764	12,661,696
Income receivable	521,248	711,944	256,693	228,740
Negotiation and intermediation of securities	110,533	160,839	164,452	253,161
Specific credits	-	153,562	-	153,562
Insurance premiums receivable	-	-	1,137,908	1,035,516
Sundry (Note 14b)	2,911,475	3,828,206	4,741,239	5,389,897
Allowance for loan losses (Notes 3e, 13f and 13g)	(98,090)	(25,811)	(143,584)	(60,680)
OTHER ASSETS ( Note 15)	225,247	255,603	647,449	583,727
Other assets	263,089	357,459	601,055	625,750
Allowance for loan losses	(142,895)	(139,431)	(211,504)	(191,524)
Prepaid expenses (Note 15b)	105,053	37,575	257,898	149,501
LONG-TERM RECEIVABLES	12,948,866	12,120,649	24,394,127	22,904,086
INTERBANK INVESTMENTS (Notes 3b, 4 and 9)	479,540	217,255	193,877	121,197
Interbank deposits	479,628	226,056	194,005	130,783
Provision for losses	(88)	(8,801)	(128)	(9,586)
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (Notes 3c, 10, 34b and 34c)	2,667,987	2,188,550	5,272,687	5,934,607
Own portfolio	1,501,804	1,718,569	4,923,715	5,273,393
Subject to repurchase agreements	1,002,895	283,818	8,081	472,955
Restricted deposits - Brazilian Central Bank	-	376,398	19,498	451,633
Privatization currencies	21,996	29,453	22,006	16,143
Subject to collateral provided	-	133,922	60,553	161,902
Derivative financial instruments (Notes 3d and 34c)	141,292	96,653	238,834	108,312
Allowance for mark-to-market	-	(450,263)	-	(549,731)
INTERBANK ACCOUNTS (Note 12)	142,637	142,384	314,103	307,279
Restricted Deposits:
- National Housing System - SFH	142,637	142,384	314,103	307,279
CREDIT OPERATIONS (Notes 3e, 4, 13 and 34b)	7,136,349	8,185,411	11,735,320	12,009,069
Credit Operations:
- Public sector	53,956	62,673	174,607	197,101
- Private sector	7,801,866	8,829,797	12,618,483	12,752,843
Allowance for loan losses (Notes 3e, 13f and 13g)	(719,473)	(707,059)	(1,057,770)	(940,875)
LEASING OPERATIONS (Notes 2, 3e, 13 and 34b)	-	-	592,412	642,204
Leasing Receivables:
- Private sector	-	-	1,319,109	1,372,516
Unearned lease income	-	-	(674,687)	(681,870)
Allowance for leasing losses (Notes 3e, 13f and 13g)	-	-	(52,010)	(48,442)
OTHER RECEIVABLES	2,302,106	1,113,930	5,942,328	3,551,119
Foreign Exchange Portfolio (Note 14a)	-	-	13,749	-
Income Receivable	536	-	3,026	-
Negotiation and intermediation of securities	-	-	190	-
Specific credits	-	762	-	31,120
Insurance premiums receivable	-	-	4,786	-
Sundry (Note 14b)	2,306,472	1,114,525	5,968,741	3,524,157
Allowance for losses (Notes 3e, 13f and 13g)	(4,902)	(1,357)	(48,164)	(4,158)
OTHER ASSETS (Notes 15)	220,247	273,119	343,400	338,611
Other assets	-	-	123,734	68,948
Allowance for losses	-	-	(44,031)	(34,862)
Prepaid expenses (Note 15b)	220,247	273,119	263,697	304,525
PERMANENT ASSETS	18,414,493	14,244,349	5,173,459	5,904,840
INVESTMENTS (Notes 3h, 4, 16 and 34b)	16,858,835	12,852,341	494,593	815,550
Investments in subsidiary and associated companies:
- Local	16,635,329	12,522,704	349,332	477,261
- Foreign	242,739	209,661	-	-
Other investments	56,477	225,453	506,058	658,565
Allowance for losses (Note 4)	(75,710)	(105,477)	(360,797)	(320,276)
PROPERTY AND EQUIPMENT IN USE (Notes 3i and 17)	1,122,742	1,108,105	2,638,583	2,596,733
Buildings in use	517,664	581,362	1,707,658	1,903,188
Other fixed assets	2,326,213	2,160,757	3,847,718	3,322,079
Accumulated depreciation	(1,721,135)	(1,634,014)	(2,916,793)	(2,628,534)
LEASED ASSETS (Note 17)	-	-	27,471	38,409
Leased assets	-	-	50,458	49,151
Accumulated depreciation	-	-	(22,987)	(10,742)
DEFERRED CHARGES (Notes 2, 3j and 18)	432,916	283,903	2,012,812	2,454,148
Organization and expansion costs	866,655	617,885	1,242,459	973,267
Accumulated amortization	(433,739)	(333,982)	(681,030)	(523,756)
Goodwill on acquisition of subsidiaries, net of amortization (Notes 3j and 18a)	-	-	1,451,383	2,004,637

T O T A L	120,578,276	91,925,067	154,489,274	124,702,491

Balance Sheet at June 30 - In thousands of reais

	BRADESCO		CONSOLIDATED BRADESCO

	2003	2002	2003	2002

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES	84,582,126	67,512,825	92,726,054	79,821,544
DEPOSITS (Notes 3k, 4 and 19a)	40,156,329	35,828,419	43,122,453	41,269,339
Demand deposits	10,164,061	8,770,599	11,524,911	10,005,046
Savings deposits	19,404,887	17,666,453	20,736,387	18,901,203
Interbank deposits	3,310,852	762,380	39,524	150,125
Time deposits (Note 34b)	7,276,529	8,628,987	10,821,631	12,212,965
DEPOSITS RECEIVED UNDER SECURITY REPURCHASE AGREEMENTS (Notes 3k and 19a)	18,368,864	7,874,017	17,605,239	8,688,651
Own portfolio	351,154	3,082,101	919,493	5,063,749
Third-party portfolio	16,937,617	4,791,916	16,685,746	3,624,902
Unrestricted portfolio	1,080,093	-	-	-
FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES (Notes 19b and 34b)	3,535,449	2,744,644	4,001,492	4,314,956
Exchange acceptances	-	-	-	37,396
Mortgage notes	442,667	255,064	521,503	641,378
Debentures	-	-	29,253	45,442
Securities issued abroad	3,092,782	2,489,580	3,450,736	3,590,740
INTERBANK ACCOUNTS	2,340,952	2,511,526	523,626	158,711
Unsettled receipts and payments	1,791,110	2,283,508	-	-
Interbank onlendings	28,211	76,728	60	4,313
Correspondent banks	521,631	151,290	523,566	154,398
INTERDEPARTMENTAL ACCOUNTS	1,161,271	719,537	1,210,963	797,367
Third-party funds in transit	1,161,271	719,537	1,210,963	797,367
BORROWINGS (Notes 20a and 34b)	6,017,831	7,573,826	6,659,971	9,024,869
Local borrowings - Official institutions	-	-	1,882	3,146
Local borrowings - Other institutions	-	-	89,348	130,631
Foreign currency borrowings	6,017,831	7,573,826	6,568,741	8,891,092
LOCAL ONLENDINGS - OFFICIAL INSTITUTIONS (Notes 20b and 34b)	1,344,356	1,176,089	2,144,759	1,674,191
National treasury	53,650	-	53,650	1,028
National Bank for Economic and Social Development (BNDES)	744,917	664,428	866,865	747,548
Federal Savings Bank (CEF)	1,553	1,732	64,877	20,372
Government Agency for Machinery and Equipment Financing (FINAME)	542,540	501,422	1,157,671	896,736
Other institutions	1,696	8,507	1,696	8,507
FOREIGN ONLENDINGS (Notes 20b and 34b)	23,092	38,872	23,497	39,237
Foreign onlendings	23,092	38,872	23,497	39,237
DERIVATIVE FINANCIAL INSTRUMENTS (Notes 3d and 34)	239,549	287,946	281,516	397,426
OTHER LIABILITIES	11,394,433	8,757,949	17,152,538	13,456,797
Collection of taxes and other contributions	723,131	757,922	852,992	902,322
Foreign exchange portfolio (Note 14a)	7,821,766	5,526,055	7,853,047	5,565,678
Social and statutory payables	566,038	319,097	581,099	394,506
Taxes and social security contributions	603,001	255,075	1,405,956	958,963
Negotiation and intermediation of securities	74,521	219,789	133,722	321,009
Technical Reserves for insurance, private pension plans and savings bonds (Notes 3g, 4 and 24)	-	-	2,874,761	2,005,623
Subordinated debt (Note 22 and 34b)	9,820	12,517	44,734	38,920
Sundry (Note 23)	1,596,156	1,667,494	3,406,227	3,269,776
LONG-TERM LIABILITIES	23,470,632	14,288,218	29,239,357	21,230,199
DEPOSITS (Notes 3k, 4 and 19a)	13,657,636	7,215,659	13,699,753	9,579,017
Interbank deposits	3,127,055	1,153,649	13	1,383
Time deposits (Note 34b)	10,530,581	6,062,010	13,699,740	9,577,634
DEPOSITS RECEIVED UNDER SECURITY REPURCHASE AGREEMENTS (Notes 3k and 19a)	963,437	6,468	963,437	6,468
Own portfolio	963,437	6,468	963,437	6,468
FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES (Notes 19b and 34b)	1,273,981	407,153	1,743,463	808,496
Mortgage notes	148,501	49,870	155,215	59,838
Debentures	-	-	1,271	130,317
Securities issued abroad	1,125,480	357,283	1,586,977	618,341
BORROWINGS (Notes 20a and 34b)	691,308	863,181	1,051,531	978,278
Local borrowings - Other institutions	-	-	118,228	99,731
Foreign currency borrowings	691,308	863,181	933,303	878,547
LOCAL ONLENDINGS - OFFICIAL INSTITUTIONS (Notes 20b and 34b)	3,076,009	3,333,028	4,687,568	4,572,300
BNDES	1,864,391	2,360,755	2,166,833	2,504,904
CEF	-	-	400,196	422,317
FINAME	1,211,618	972,273	2,120,539	1,645,079
FOREIGN ONLENDINGS (Notes 20b and 34b)	5,044	13,208	5,044	13,350
Foreign onlendings	5,044	13,208	5,044	13,350
DERIVATIVE FINANCIAL INSTRUMENTS (Notes 3d, and 34)	5,803	25,940	28,273	154,647
OTHER LIABILITIES	3,797,414	2,423,581	7,060,288	5,117,643
Foreign Exchange Portfolio (Note 14a)	-	-	493	-
Taxes and social security contributions	685,354	918,569	2,654,976	2,614,103
Subordinated debt (Note 22 and 34b)	2,696,961	1,350,661	3,293,011	1,950,661
Sundry (Note 23)	415,099	154,351	1,111,808	552,879
TECHNICAL RESERVES FOR INSURANCE, PRIVATE PENSION PLANS AND SAVINGS BONDS (Notes 3g, 4 and 24)	-	-	19,857,515	13,205,936
DEFERRED INCOME	3,414	5,465	36,987	11,907
Deferred income	3,414	5,465	36,987	11,907
MINORITY INTEREST IN SUBSIDIARY COMPANIES (Note 25)	-	-	107,257	314,346
STOCKHOLDERS' EQUITY (Note 26)	12,522,104	10,118,559	12,522,104	10,118,559
Capital:
- Local residents	6,693,955	4,808,350	6,693,955	4,808,350
- Foreign residents	306,045	391,650	306,045	391,650
Capital reserves	7,890	7,435	7,890	7,435
Revenue reserves	5,520,297	5,227,701	5,520,297	5,227,701
Mark-to-market adjustment - securities and derivatives	(6,083)	(310,727)	(6,083)	(310,727)
Treasury stock	-	(5,850)	-	(5,850)
STOCKHOLDERS´ EQUITY MANAGED BY THE PARENT COMPANY	-	-	12,629,361	10,432,905

T O T A L	120,578,276	91,925,067	154,489,274	124,702,491

Statement of Income for the Six-month Period Ended June 30 - In thousands of reais (A free translation of the original in Portuguese prepared in conformity with accounting practices adopted in Brazil)

	BRADESCO		CONSOLIDATED BRADESCO

	2003	2002	2003	2002

INCOME FROM LENDING AND TRADING ACTIVITIES	8,402,308	8,205,352	12,181,690	13,018,256
Credit operations (Note 13i)	4,083,563	4,746,247	5,627,546	6,862,327
Leasing operations (Note 13i)	-	-	143,163	206,437
Security transactions (Notes 4a and 10f)	3,589,931	2,615,893	2,785,994	3,920,780
Financial income on insurance, private pension plans and saving bonds (Notes 4a and 10f)	-	-	2,613,256	1,102,886
Derivative financial instruments (Notes 4a and 34c V)	(245,716)	(575,943)	13,157	(795,253)
Foreign exchange instruments (Notes 4a and 14a)	327,413	1,301,541	267,651	1,580,296
Compulsory deposits (Note 12b)	647,117	117,614	730,923	140,783
EXPENSES	6,337,825	6,668,427	7,593,125	9,661,091
Deposits (Notes 4a and 19c)	4,884,963	3,434,980	4,496,000	4,949,243
Price-level restatement and interest on technical reserves for
insurance, private pension plans and savings bonds (Notes 4a and 19c)	-	-	1,658,010	743,149
Borrowings and onlendings (Note 20c)	221,551	2,174,950	37,685	2,619,009
Leasing operations (Note 13i)	-	-	6,396	6,185
Provision for loan losses (Notes 3e, 13f and 13g)	1,231,311	1,058,497	1,395,034	1,343,505
INCOME FROM FINANCIAL INTERMEDIATION	2,064,483	1,536,925	4,588,565	3,357,165
OTHER OPERATING INCOME (EXPENSES)	(1,078,000)	(730,499)	(2,589,494)	(2,201,517)
Commissions and fees (Note 27)	1,467,364	1,325,846	2,092,989	1,786,217
Retained insurance premiums, private pension plans and savings bonds (Notes 3g and 24c)	-	-	5,679,414	4,212,319
Change in technical reserves for insurance, private pension plans and
savings bonds (Notes 3g and 4a)	-	-	(1,725,366)	(426,623)
Claims - Insurance operations (Note 3g)	-	-	(2,255,377)	(1,758,061)
Savings bond redemptions (Note 3g)	-	-	(452,149)	(372,192)
Insurance and pension plan benefits and redemption (Note 3g)	-	-	(363,020)	(320,559)
Expenses with pension plan benefits and redemptions (Note 3g)	-	-	(851,268)	(760,410)
Personnel expenses,(Notes 4a and 28)	(1,550,727)	(1,340,800)	(2,201,013)	(1,884,107)
Other administrative expenses (Note 29)	(1,513,049)	(1,293,637)	(2,253,610)	(1,854,421)
Tax expenses	(268,804)	(218,077)	(506,281)	(404,215)
Equity in the earnings of subsidiary and associated companies (Note 16c)	681,099	925,990	(32,714)	23,104
Other operating income (Notes 4a and 30)	501,885	218,603	1,494,061	659,854
Other operating expenses (Notes 4a and 31)	(395,768)	(348,424)	(1,215,160)	(1,102,423)
OPERATING INCOME	986,483	806,426	1,999,071	1,155,648
NON-OPERATING INCOME (EXPENSES), NET (Note 32)	(26,277)	(38,585)	(777,435)	(9,426)
INCOME BEFORE TAXES AND PROFIT SHARING	960,206	767,841	1,221,636	1,146,222
PROVISION FOR INCOME TAX AND SOCIAL CONTRIBUTION (Notes 36a and 36b)	67,105	136,397	(189,414)	(234,319)
MINORITY INTEREST IN SUBSIDIARIES	-	-	(4,911)	(7,665)
NET INCOME	1,027,311	904,238	1,027,311	904,238

Interest attributed to own capital (Note 26c)	(633,326)	(316,249)
Number of outstanding shares (Notes 26a and 26b)	1,585,879,423,300	1,437,151,301,837
Net income per thousand shares - In reais	0.65	0.63

The accompanying notes are an integral part of these financial statements

Statement of Changes in Stockholders' Equity - In thousands of reais (A free translation of the original in Portuguese prepared in conformity with accounting practices adopted in Brazil)

	PAID-UP CAPITAL	CAPITAL RESERVES		REVENUE RESERVES					MARK-TO-MARKET ADJUSTMENT SECURITIES AND DERIVATIVE

EVENTS	CAPITAL	INCOME TAX INCENTIVES	OTHER	LEGAL	STATUTORY	STATUTORY FOR CAPITAL INCREASE	STATUTORY FOR PAYMENT OF DIVIDENDS	STATUTORY FOR INVESTMENTS	OWN	ASSOCIATED AND SUBSIDIARY COMPANIES	TREASURY STOCK	RETAINED EARNINGS	TOTAL

At December 31, 2001	5,200,000	-	7,435	692,577	-	3,080,177	432,663	408,693	-	-	(53,599)	-	9,767,946
Prior-year adjustments - Trading securities	-	-	-	-	-	-	-	-	-	-	-	21,146	21,146
Prior-year adjustments - Securities available for sale - Gain	-	-	-	-	-	-	-	-	125,571	71,532	-	-	197,103
Prior-year adjustments - Securities available for sale - Loss	-	-	-	-	-	-	-	-	(5,606)	(85,358)	-	90,964	-
Transfer of prior-year adjustments to reserves	-	-	-	5,606	106,504	-	-	-	-	-	-	(112,110)	-
Transfer of reserves	-	-	-	-	3,921,533	(3,080,177)	(432,663)	(408,693)	-	-	-	-	-
Treasury stock	-	-	-	-	-	-	-	-	-	-	(38,759)	-	(38,759)
Cancellation of treasury stock	-	-	-	-	(86,508)	-	-	-	-	-	86,508	-	-
Mark-to-market adjustment - Securities and derivatives	-	-	-	-	-	-	-	-	(221,212)	(195,654)	-	-	(416,866)
Net income	-	-	-	-	-	-	-	-	-	-	-	904,238	904,238
Appropriation of net income:
- - Reserves	-	-	-	45,212	542,777	-	-	-	-	-	-	(587,989)	-
- Interest attributed to own capital	-	-	-	-	-	-	-	-	-	-	-	(316,249)	(316,249)

At June 30, 2002	5,200,000	-	7,435	743,395	4,484,306	-	-	-	(101,247)	(209,480)	(5,850)	-	10,118,559

At December 31, 2002	5,200,000	-	7,435	799,312	4,916,005	-	-	-	100,871	(91,719)	(86,175)	-	10,845,729
Capital increase through subscription	501,000	-	-	-	-	-	-	-	-	-	-	-	501,000
Capital increase through incorporation of shares	788,735	-	-	-	-	-	-	-	-	-	-	-	788,735
Capital increase with reserves	510,265	-	(7,435)	-	(502,830)	-	-	-	-	-	-	-	-
Share premium	-	-	7,046	-	-	-	-	-	-	-	-	-	7,046
Cancellation of treasury stock	-	-	-	-	(86,175)	-	-	-	-	-	86,175	-	-
Fiscal incentives	-	844	-	-	-	-	-	-	-	-	-	-	844
Mark-to-market adjustment - Securities and derivatives	-	-	-	-	-	-	-	-	(26,699)	11,464	-	-	(15,235)
Net income	-	-	-	-	-	-	-	-	-	-	-	1,027,311	1,027,311
Appropriation of net income:
- Reserves	-	-	-	51,366	342,619	-	-	-	-	-	-	(393,985)	-
- Interest attributed to own capital	-	-	-	-	-	-	-	-	-	-	-	(633,326)	(633,326)

At June 30, 2003	7,000,000	844	7,046	850,678	4,669,619	-	-	-	74,172	(80,255)	-	-	12,522,104

The accompanying notes are an integral part of these financial statements

Statement of Changes in Financial Position for the Six-month Period Ended June 30 - In thousands of reais (A free translation of the original in Portuguese prepared in conformity with accounting practices adopted in Brazil)

	BRADESCO		CONSOLIDATED BRADESCO

	2003	2002	2003	2002

FINANCIAL RESOURCES WERE PROVIDED BY :	18,951,948	20,310,113	16,599,057	23,886,394
NET INCOME	1,027,311	904,238	1,027,311	904,238
ADJUSTMENTS TO NET INCOME	(767,214)	(810,654)	1,179,556	296,607
Depreciation and amortization	173,355	125,253	291,166	223,501
Amortization of goodwill	57,956	65,189	799,889	96,125
Change in provision for investments	(9,879)	(183,060)	39,167	3,856
Equity in the earnings of subsidiary and associated companies	(681,099)	(925,990)	32,714	(23,104)
Other	(307,547)	107,954	16,620	(3,771)
Technical Reserves for Insurance, private pension plans and savings bonds	-	-	3,064,897	1,331,653
Change in Deferred Income	(3,311)	(629)	21,144	2,887
Change in Minority Interest	-	-	(163,807)	175,116
STOCKHOLDERS	1,297,625	-	1,297,625	-
Capital increase through subscription	501,000	-	501,000	-
Capital increase through incorparation of shares	788,735	-	788,735	-
Capital Reserves - Fiscal incentives	844	-	844	-
Share premium	7,046	-	7,046	-
THIRD PARTIES:
- Increase in liabilities	16,802,639	14,481,132	9,438,597	18,121,841
Deposits	4,867,662	5,511,298	459,043	9,764,377
Deposits received under security repurchase agreements	4,566,548	-	2,555,711	-
Funds from acceptance and issuance of securities	2,164,091	-	2,608,113	322,042
Interbank accounts	1,757,944	2,320,267	-	-
Interdepartmental accounts	-	18,644	-	34,862
Borrowings and onlendings	-	1,546,119	-	2,268,155
Derivative financial instruments	51,413	245,775	-	440,473
Technical reserves for insurance, private pension plans and savings bonds	-	-	511,900	26,480
Other liabilities	3,394,981	4,839,029	3,303,830	5,265,452
- Decrease in assets	2,145	4,945,703	515,359	2,533,285
Interbank investments	-	-	476,968	-
Securities and derivative financial instruments	-	4,945,703	-	2,533,285
Leasing operations	-	-	38,391	-
Other assets	2,145	-	-	-
- Sale (write-off) of assets and investments	321,559	143,766	196,501	503,281
Non-operating assets	57,137	38,472	88,888	50,175
Property and equipment in use and leased assets	6,966	34,909	62,493	87,978
Investments	252,762	70,254	18,430	362,316
Sale (write-off) of deferred charges	4,694	131	26,690	2,812
- Interest attributed to own capital and dividends received from subsidiary
and associated companies	271,194	646,557	21,874	17,486
TOTAL FUNDS PROVIDED	19,195,594	21,579,314	17,611,883	24,840,850
INTEREST ATTRIBUTED TO OWN CAPITAL AND DIVIDENDS PAID AND/OR DECLARED	633,326	316,249	633,326	316,249
ACQUISITION OF OWN SHARES	-	38,759	-	38,759
INVESTMENTS IN:	3,497,517	2,091,976	670,913	1,259,571
Non-operating assets	39,313	63,676	125,274	123,801
Property and equipment in use and leased assets	187,308	163,747	460,298	715,792
Investments	3,270,896	1,864,553	85,341	419,978
DEFERRED CHARGES	191,123	57,095	503,558	1,373,367
INCREASE IN ASSETS	13,029,112	12,775,816	13,461,359	16,457,380
Interbank investments	2,086,512	2,690,918	-	1,534,928
Securities and derivative financial instruments	1,857,410	-	5,807,313	-
Interbank accounts	3,807,398	3,426,998	1,865,942	1,557,385
Interdepartmental accounts	17,699	76,591	23,342	103,116
Credit operations	1,197,258	136,926	1,421,093	5,410,957
Leasing operations	-	-	-	129,453
Other receivables	4,062,835	6,377,629	4,103,324	7,488,913
Insurance premiums receivable	-	-	221,970	39,854
Other assets	-	66,754	18,375	192,774
DECREASE IN LIABILITIES	1,844,516	6,299,419	2,342,727	5,395,524
Deposits received under security repurchase agreements	-	5,568,980	-	5,362,208
Funds from acceptance and issuance of securities	-	730,439	-	-
Interbank accounts	-	-	83,070	33,316
Interdepartmental accounts	23,935	-	126,766	-
Borrowings and onlendings	1,820,581	-	1,865,983	-
Derivative financial instruments	-	-	266,908	-
DECREASE IN FUNDS AVAILABLE	(243,646)	(1,269,201)	(1,012,826)	(954,456)

CHANGES IN	At the beginning of the period	1,780,121	2,450,945	2,785,707	3,085,787
FINANCIAL	At the end of the period	1,536,475	1,181,744	1,772,881	2,131,331
POSITION	Decrease in funds available	(243,646)	(1,269,201)	(1,012,826)	(954,456)

The accompanying notes are an integral part of these financial statements

The notes to the Financial Statements of Banco Bradesco S.A. are subdivided as follows:

19) DEPOSITS, DEPOSITS RECEIVED UNDER SECURITY REPURCHASE AGREEMENTS AND FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES

33) TRANSACTIONS WITH SUBSIDIARY AND ASSOCIATED COMPANIES (DIRECT AND INDIRECT)

Banco Bradesco S.A. is a private-sector open-capital company which, operating as a multiple bank, carries out all types of authorized banking activities including foreign exchange transactions through its commercial, investment, consumer financing, housing loan and credit card portfolios. The Bank also operates in a number of other activities through its direct and indirect subsidiary companies, particularly in leasing, consortium management, insurance, savings bond and private pension plan activities. Operations are conducted within the context of the companies comprising the Bradesco Group, which are jointly active in the market.

The financial statements of Banco Bradesco S.A. and its foreign branches (BRADESCO) are presented in conjunction with the consolidated financial statements of Banco Bradesco S.A., which include the financial statements of Banco Bradesco S.A., its foreign branches and its direct and indirect subsidiaries and jointly controlled investments (CONSOLIDATED BRADESCO).

The financial statements of Banco Bradesco S.A. and the consolidated financial statements were prepared based on accounting policies determined by Brazilian Corporation Law for the recording of operations, as well as the rules and instructions of the National Monetary Council (CMN), Brazilian Central Bank (BACEN), Brazilian Securities Commission (CVM) and Superintendency of Private Insurance (SUSEP), and comprise the financial statements of the leasing companies based on the capital leasing method of accounting, which requires the reclassification of leasing operations to the current-asset and long-term-receivable accounts.

Accordingly, upon consolidation, intercompany investments, account balances, revenue, expenses and unrealized income were eliminated from the financial statements and, in the case of investments which are jointly controlled with other stockholders, asset, liability and income components are included in the consolidated financial statements in proportion to the parent company's percentage capital ownership of each investee. Goodwill on the acquisition of investments in subsidiaries is presented in deferred assets and minority interests in net income and stockholders’ equity are separately disclosed. Exchange variation arising from permanent investments in subsidiaries and foreign branches was allocated to the statement of income accounts in accordance with the corresponding assets and liabilities from which it originated.

The financial statements include estimates and assumptions, such as the calculation of the allowance for loan losses, the estimation of the fair value of certain financial instruments, the quantification of technical reserves for insurance, pension plans and savings bonds and the determination of the useful economic life of specific assets. Actual results could differ from these estimates and assumptions.

We present below the main direct and indirect subsidiaries, including their foreign branches and subsidiaries and jointly controlled investments:

Income and expenses are recorded on the accrual basis and are prorated daily when of a financial nature. Transactions with prefixed rates are recorded at their redemption amounts and income and expenses for the future period are recorded as a discount to the corresponding asset and liability accounts. Post-fixed or foreign-currency-indexed transactions are adjusted to the balance sheet date. Income and expenses of a financial nature are calculated based on the exponential method, except when relating to discounted notes or to cross-border transactions which are calculated on the straight-line method.

The insurance and coinsurance premiums and income on commissions, net of premiums assigned in coinsurance and reinsurance and corresponding expenses for commission, are appropriated to results upon issuance of the corresponding insurance policies and are deferred for appropriation on a straight-line basis over the terms of the policies, through the recording and reversal of a provision for unearned premiums and deferred selling expenses. The accepted coinsurance and retrocession operations are recorded based on the information received from other companies and the Brazilian Institute of Reinsurers (IRB), respectively.

The revenue from savings bond plans is recognized at the time it is effectively received. The expenses for placement of bonds, classified as “Selling Expenses”, are recorded as they are incurred. Brokerage expenses are recorded at the time the savings bond plan contributions are effectively received. The payment of prizes on winning bonds is recorded as an expense in the month in which the draw takes places.

The private pension plan contributions are recorded in income at the time they are effectively received.

These are recorded at purchase cost, including accrued income up to the balance sheet date, net of loss accrual, where applicable.

Pursuant to BACEN Circular 3068/2001, as from June 30, 2002, securities are classified and recorded as presented below:

Up to June 2002, securities were valued at cost of acquisition, plus accrued earnings and less of the provision for adjustment to probable realizable value.

Pursuant to BACEN Circular 3082/2002 and complementary regulations, the derivative financial instruments are classified based on management’s intended use thereof on the date of the operation and whether it was carried out for hedging purposes or not.

The derivative financial instruments which do not comply with the hedging criteria established by BACEN, particularly derivatives used to manage general exposure to risk, are recorded at market values, with the corresponding mark-to-market adjustments taken directly to income for the period.

The derivative financial instruments used for protection against exposure to risk or for changing the characteristics of financial assets and liabilities and which are: (i) significantly co-related in relation to the adjustment of their market value to the market value of the hedged item, at both the start and over the duration of the contract; and (ii) considered to be effective in mitigating the risk associated with the exposure which is to be protected, are classified as hedges in accordance with their specific nature:

The credit and leasing operations are classified in compliance with: (i) the parameters established by CMN Resolution 2682/1999 at nine levels from “AA” (minimum risk) to “H” (maximum risk); and (ii) management’s risk level assessment. This assessment, which is carried out on a periodic basis, considers current economic conditions, and past loan loss experience, as well as specific and general risks relating to operations, borrowers and guarantors. The length of the delay in payment defined in CMN Resolution 2682/1999 is also taken into account for customer risk classification purposes as follows:

The accrual of credit operations past due up to 60 days is recorded in income on credit operations and subsequent to the 61st day, in unearned income.

Past-due operations classified at “H” level remain at this level for six months, subsequent to which time they are written off against the existing allowance and controlled over a five-year period in memorandum accounts and no longer presented in the balance sheet.

Renegotiated operations are maintained with a maximum classification equal to their prior classification. Renegotiated operations, already written off against the allowance and which are recorded in memorandum accounts are classified at “H” level and any gains derived from their renegotiation are recognized as revenue only when they are effectively received.

In the case of mortgage loans, the contractual capitalization period (monthly or quarterly) for income appropriation purposes complies with applicable legislation and end-borrower financings are adjusted to the present value of the installments receivable.

The allowance for loan losses is recorded at an amount considered sufficient to cover estimated losses and is based upon current economic conditions, past loan loss experience, specific and general portfolio risks and on BACEN requirements and instructions (Notes 13 f and g).

Deferred income tax and social contribution calculated on tax losses, negative basis of social contribution and temporary additions are recorded in “Other receivables - sundry”, and the provision for deferred income tax on excess depreciation and mark-to-market adjustments is recorded in “Other liabilities – taxes and social security contributions”. Only deferred tax assets which have already acquired tax deductibility rights are recorded on amortization of goodwill.

Deferred tax assets on temporary additions are realized upon use and/or reversal of the corresponding provisions on which they were recorded. Deferred tax assets on tax losses and negative basis of social contribution will be realized as taxable income is generated (Note 36).

The provision for federal income tax is calculated at the standard rate of 15% of taxable income, plus an additional rate of 10% for income over established limits. The provision for social contribution is recorded at the rate of 9% of pre-tax income. Provisions were recorded for other taxes and social contributions in accordance with specific applicable legislation.

g) Technical reserves relating to insurance, pension plan and savings bond activities

These are recorded at the amount of that portion of the insurance premiums issued/retained corresponding to the unexpired risk periods of the insurance contracts, in accordance with the criteria determined by SUSEP standards.

Mathematical provisions comprise the amount of the liabilities assumed under the form of income, pension and savings plans and are calculated based on the financial method determined in the contract under the responsibility of a legally qualified actuary registered with the Brazilian Institute of Actuaries (IBA). The mathematical provisions comprise the present value of future benefits estimated based on actuarial methods and assumptions. The provision for benefits to be granted comprises participants whose receipt of benefits has not yet commenced and the provision for benefits granted comprises participants who are currently receiving benefits.

These are recorded in conformity with the technical notes approved by SUSEP, based on a variable percentage applicable to the amounts effectively received.

The provision for payment of unsettled claims is recorded based on estimated probable payments, net of recoveries and adjusted for price-level restatement up to the balance sheet date. The reserve for claims incurred but not reported (IBNR) is calculated on an actuarial basis to quantify the volume and amount of the claims incurred, but which have not yet been reported to the insurance companies by the policyholders/beneficiaries.

Significant investments in subsidiaries, associated companies and jointly controlled investments are recorded on the equity method. The financial statements of the foreign branches and subsidiaries are adjusted to comply with the accounting practices adopted in Brazil, translated into reais and their related effects recognized in income for the period.

The exchange membership certificates of Stock Exchanges, the Center for the Financial Clearance and Custody of Private Securities (CETIP) and the Mercantile and Futures Exchange (BM&F) were recorded at net book value and fiscal incentives and other investments were recorded at cost, plus restatements through December 31, 1995, net of the provision for loss, where applicable.

Property and equipment in use is stated at cost plus restatements through December 31, 1995, net of the corresponding accumulated depreciation, calculated on the straight-line method at annual rates which take into consideration the economic useful lives of the assets as follows: buildings in use - 4%; furniture and fixtures and machinery and equipment - 10%; data processing systems - 20% to 50%; and transport systems - 20%.

Deferred charges, other than goodwill, are recorded at cost of acquisition or formation, net of the corresponding accumulated amortization, calculated on the straight-line method and amortized at a rate of 20% to 50% per annum. Goodwill on the acquisition of investments in subsidiary companies, based on expected future results, is amortized at rates of 10% to 20% per annum and is presented on a consolidated basis in deferred charges and in investments on an unconsolidated basis.

These are stated at the amount of the liabilities and include related charges up to the balance sheet date, on a daily pro rata basis.

The assets are stated at their realizable amounts, including, where applicable, related income and monetary (on a daily pro rata basis) and exchange variations, less provisions when deemed appropriate. The liabilities include known or estimated amounts, plus related charges and monetary (on a pro rata basis) and exchange variations.

In order to facilitate comparison of the financial statements, certain June 30, 2002 account balances were reclassified in line with the accounting procedures/classification used at June 30, 2003.

b) During the first half of 2003, Bradesco acquired the share control of BBV Banco and its subsidiaries. We present below the main balance sheet and statement of income accounts of the Bank and its subsidiaries at June 30, 2003:

The consolidated balance sheet and statement of income, by business segment, are presented below at June 30, 2003 in accordance with the Chart of Accounts for National Financial System Institutions (COSIF).

We present below the consolidated account balances by currency and exchange exposure, at June 30, 2003:

We present below the consolidated balance sheet at June 30, 2003, by days to maturity, based on accounting classification:

As additional information for readers, we present below the statement of cash flows prepared based on the indirect method. The information is presented in conformity with the definitions set forth in the Chart of Accounts for National Financial System Institutions (COSIF).

a) Interbank investments are presented below with their corresponding days to maturity:

We present below income from interbank investments, classified in the statement of income as income on security transactions:

a) Summary of the consolidated classification of securities by business segment and issuer

c) Consolidated classification by category, days to maturity and business segment

Investment fund applications were distributed based on the securities comprising their portfolios. The number of days to maturity was based on the maturity of the securities, regardless of accounting classification.

e) At June 30, 2003, an amount of R$ 1,521,134 thousand of investment fund applications was reclassified from “securities available for sale” to “trading securities” and an amount of R$ 215,137 thousand of Brazilian foreign debt notes from “securities held to maturity” to “securities available for sale”. These reclassifications decreased stockholders’ equity by R$ 53,757 thousand with no effect, however, on income. The reclassifications were based on Management’s reassessment of the new profile of the securities portfolio following the acquisition of BBV Banco.

f) Income on security transactions, financial income on insurance, private pension plans and savings bonds and derivative financial instruments

We present below the composition of the results of transactions with securities and derivative financial instruments:

The information relating to credit operations including advances on foreign exchange contracts, leasing operations and other receivables is presented as follows:

a) Credit operations by type and maturity.
b) Credit operations arising from new acquisitions.
c) Credit operations by type and risk level.
d) Concentration of credit operations.
e) Credit operations by activity sector.
f) Composition of credit operations and allowance for loan losses.
g) Movement of the allowance for loan losses.
h) Recovery and renegotiation of credit operations.
i) Income on credit operations.

On an unconsolidated basis, normal course operations determined on the same bases as in the above exhibit total R$ 37,030,748 thousand (2002 - R$ 35,446,191 thousand), past-due installments total R$ 1,420,121 thousand (2002 - R$ 1,519,034 thousand) and installments falling due total R$ 1,309,189 thousand (2002 - R$ 1,454,680 thousand).

f) Composition of the credit operation portfolio and the allowance for loan losses

Expense for provision for loan losses, net of recoveries of written-off credits:

We present below the composition of foreign exchange transactions adjusted to improve the presentation of the effective results:

These comprise mainly expenses for insurance, prepaid financial expenses, auto sales commission and expenses for the contract to provide banking services at Post Office network bank branches, which are amortized on a straight-line basis according to the contract terms.

a) We present below the movement of investments in foreign branches and direct and indirect subsidiaries, which were fully eliminated upon consolidation of the financial statements:

c) Equity accounting was recorded in income under ’equity in the earnings of subsidiary and associated companies’ and totals R$ (32,714) thousand (2002 – R$ 23,104 thousand) and R$ 681,099 thousand (2002 – R$ 925,990 thousand) on an unconsolidated basis and is presented as follows:

These are stated at cost plus restatements through December 31, 1995. Depreciation is calculated on the straight-line method at annual rates which take into consideration the economic useful lives of the assets. We present below the composition of property and equipment in use and leased assets:

Land and buildings in use of the Bradesco Organization present an unrecorded increment of R$ 926,432 thousand, based on appraisal reports prepared by independent experts in 2002.

The permanent assets to stockholders’ equity ratio in relation to consolidated reference equity is 31.63% on a consolidated basis and 43.91% on a consolidated financial basis, within the maximum 50% limit.

Goodwill on the acquisition of investments, based on future profitability, mainly results from goodwill on the acquisition of BCN – R$ 150,124 thousand (2002 - R$ 184,114 thousand); Credireal – R$ 54,909 thousand (2002 – R$ 67,341 thousand); Baneb – R$ 75,368 thousand (2002 – R$ 87,930 thousand); Boavista – R$ 330,951 thousand (2002 – R$ 376,080 thousand); BEA – R$ 61,651 thousand (2002 – R$ 63,160 thousand); Mercantil - R$ 90,535 thousand (2002 – R$ 717,356 thousand); Bancocidade - R$ 152,612 thousand (2002 – R$ 193,200 thousand); BBV Banco - R$ 197,871 thousand; and Bradesco BCN Leasing S.A. Arrendamento Mercantil in the amount of R$ 50,117 thousand (2002 – R$ 57,317 thousand). Amortization of goodwill for the first half of 2003 totaled R$ 799,889 thousand (2002 – R$ 96,125 thousand), of which R$ 680,759 thousand comprises extraordinary amortization of goodwill in Banco Mercantil de São Paulo S.A. (Note 32). Remaining goodwill will be amortized over a period varying from 4 to 10 years.

19) Deposits, Deposits received under Security Repurchase Agreements and Funds from Acceptance and Issuance of Securities

c) Expenses with funding and price-level restatement and interest on technical reserves for insurance, private pension plans and saving bonds

The Bradesco Organization is currently a defendant in a number of legal suits in the labor, civil and tax spheres, arising from the normal course of its business activities.

The provisions were recorded based on the opinion of the Organization’s legal advisors, the types of lawsuit, similarity with previous suits and complexity, available jurisprudence and court sentences, whenever loss is deemed probable.

The Organization’s Management considers that the provision recorded for contingencies is sufficient to cover probable losses generated by the corresponding legal proceedings.

Labor claims are generated by normal employee turnover matters and mostly comprise claims for unpaid overtime.

From 1992, employee hours are controlled electronically and accordingly claims on an individual basis are, for the most part, no longer significant.

These arise during the normal course of certain work routines and comprise claims for pain and suffering and pecuniary damages, mainly protests, bounced checks and the inclusion of names in the restricted credit registry.

In general, these claims do not comprise facts which could cause a significant effect on financial results.

The Bradesco Organization is disputing the legality of certain taxes and contributions, for which provisions have been recorded in full, despite the likelihood of a successful medium and long-term outcome based on the opinion of their legal advisors.

b) Guarantee of technical reserves for insurance, private pension plans and savings bonds

We present below the amounts of the assets and rights offered as coverage of technical reserves for insurance, private pension plans and savings bonds:

We present below the composition of income on insurance premiums, private pension plan contributions and savings bond certificates.

Fully subscribed and paid-up capital comprises nominative-registered shares, with no par value, as follows:

At the Extraordinary General Meeting held on January 10, 2003, approval was given for the cancellation of 9,797,900,000 common nominative-registered shares, of the Bank’s own capital, with no par value, held in treasury, without decreasing capital, which were acquired by the Bank by decision of the Board of Directors at the meetings held on April 1, July 11 and November 26, 2002.

At the Extraordinary General Meeting held on March 10, 2003, approval was given to increase capital by R$ 399,000 thousand to R$ 5,599,000 thousand, through the capitalization of the balance of the following reserve: “Capital reserve – Share premium” - R$ 7,435 thousand and a portion of the “Revenue reserve – Statutory” account - R$ 391,565 thousand, with no new issue of shares pursuant to Clause One of Article 169 of Law 6404/76.

At the Extraordinary General Meeting held on March 31, 2003, approval was given to ratify the capital increase approved at the Extraordinary General Meeting held on January 10, 2003 in the amount of R$ 501,000 thousand from R$ 5,599,000 thousand to R$ 6,100,000 thousand, through the subscription of 66,800,000,000 new nominative-registered shares with no par value, of which 33,652,745,021 are common and 33,147,254,979 are preferred shares.

At the Extraordinary General Meeting held on March 31, 2003, approval was given for a capital increase in the amount of R$ 158,735 thousand, from R$ 6,100,000 thousand to R$ 6,258,735 thousand, through the issue of 20,767,712,349 new nominative-registered shares with no par value, of which 10,462,433,059 are common and 10,305,279,290 are preferred shares, in the proportion of 23.94439086 Bradesco shares for each Banco Mercantil share and of which 12.06279162 are common and 11.88159924 are preferred shares, to be attributed to the minority stockholders of Banco Mercantil, regardless of the type of shares held by them in Mercantil. At the same meeting, approval was given to increase capital by R$ 41,265 thousand to R$ 6,300,000 thousand through the capitalization of a portion of the account balance of “Revenue reserve – Statutory”, with no new issue of shares.

At the Extraordinary General Meeting held on June 9, 2003, approval was given for a capital increase of R$ 630,000 thousand, from R$ 6,300,000 thousand to R$ 6,930,000 thousand, through the issue of 70,431,409,114 new nominative-registered shares, with no par value, of which 35,482,189,407 are common and 34,949,219,707 are preferred shares, in the proportion of 44.422475667 Bradesco shares for each BBV Banco share, of which 22.379315072 are common and 22.043160595 are preferred shares, to be attributed to the minority stockholders of BBV Banco, regardless of the type of shares held by them in BBV Banco. At the same meeting, approval was given to increase capital by R$ 70,000 thousand to R$ 7,000,000 thousand, through the capitalization of a portion of the account balance of “Revenue reserve – Statutory”, with no new issue of shares.

Non-voting preferred shares are entitled to all rights and benefits attributed to common shares and in conformity with the Bank’s statutes have priority to repayment of capital and 10% additional interest attributed to own capital and/or dividends, in accordance with the provisions of paragraph 1, item II of Article 17 of Law 6404/76, as amended by Law 10303/2001.

In conformity with the Bank’s statutes, stockholders are entitled to interest attributed to own capital and/or dividends which total at least 30% of net income for the year, adjusted in accordance with Brazilian corporate legislation.

Interest attributed to own capital is calculated based on the stockholders' equity accounts and limited to the variation in the long-term interest rate (TJLP), subject to the existence of profits, computed prior to the deduction thereof, or of retained earnings and revenue reserves in amounts that are equivalent to or exceed twice the amount of such interest.

At the Board of Directors meeting held on March 5, 2003, approval was given to increase monthly interest attributed to own capital, paid in advance to stockholders, by 20%, from R$ 0.0117650 to R$ 0.0141180, per thousand common shares and from R$ 0.0129415 to R$ 0.0155298, per thousand preferred shares, effective as from March 2003.

It is the Bank’s policy to distribute, during the year, all the interest attributed to own capital, determined in conformity with the above criteria and to compute this interest for the minimum compulsory dividend, net of withholding tax (IRRF).

The main transactions with subsidiary and associated companies were carried out at average market terms and prices at the time of the transactions and are summarized below:

b) Foreign exchange portfolio transactions in the interbank market for ready settlement.

c) Foreign credit lines for export financing in Brazil, subject to exchange variations and interest at rates practiced in the international market.

d) These payables are recorded as a counter-entry to exchange purchases pending settlement.

e) Short-term interbank investments - interbank deposits of related companies at CDI rate (Certificate of Interbank Deposit).

f) Repurchase and/or resale commitments pending settlement, guaranteed by government securities at normal market rates.

h) Foreign currency loans for financing of exports subject to exchange variation and bearing interest at international market rates.

i) Costs reimbursed by Bradesco BCN Leasing S.A. Arrendamento Mercantil to Banco Bradesco S.A. on account of the use of its Branch network facilities for contracting lease operations.

j) Contract with Scopus Tecnologia S.A. for IT equipment maintenance services and the contract with CPM S.A. for data processing systems maintenance services.

k) Investments in foreign securities, fixed rate notes and eurobonds subject to exchange variations and carrying interest at rates used for securities placed in the international market.

l) Payables on interbank onlendings - funds from rural loans bearing interest and charges corresponding to normal rates practiced for this type of transaction.

n) Payments made by Banco Bradesco S.A. for healthcare plans of employees and their dependents.

o) Contributions made by Banco Bradesco S.A. to private pension plans for employees and directors.

The main risks related to financial instruments, arising from the business carried out by the Bank and its subsidiaries are as follows: credit risk; market risk; liquidity risk; and capital risk. The process used to manage these risks involves the Organization's diverse levels and embraces a range of different policies and strategies. The risk management policies are generally conservative and seek to limit absolute loss to a minimum.

Credit risk is the risk arising from the possibility of loss due to the non-receipt of amounts contracted with borrowers and their related creditors. Credit risk management requires a strictly disciplined control over all analyses and transactions carried out, safeguarding process integrity and independence. Bradesco's credit policy is designed to ensure maximum security, quality and liquidity in the investment of assets, as well as flexible and profitable business, minimizing risks inherent to this type of operation and directing the establishment of operating limits and the granting of credit. Accordingly, the Credit Department and Committees located at the Bank's Headquarters are critical to policy implementation since they are responsible for gearing and managing this core strategic activity. The Branches work within varying limits, according to the size and types of underlying guarantee, subject to a centralized evaluation and accordingly in line with the Organization’s credit and risk management policy. Operations involving less significant amounts are subject to specialized automated credit scoring systems, maximizing the speed and security of the approvals process, based on strict protection standards. Operations are diversified, non-selective and focused on Consumer and Corporate customers with sound payment capacity and proven creditworthiness. Care is taken to ensure that related guarantees are sufficient to cover the risks assumed, considering the purpose and terms of the credit granted.

Market risk is related to the possibility of the loss of income from fluctuating rates caused by the unhedged terms, currencies and indices of the Bank's asset and liability portfolio. At Bradesco, market risks are managed through methodologies and models which are consistent with local and international market reality, ensuring that the Organization's strategic decisions are implemented with speed and a high level of reliability. The Organization adopts a conservative policy regarding market risk exposure and VaR (Value at Risk) limits are defined by Senior Management, and compliance is monitored daily by an area which is independent from portfolio management. The methodology used to determine VaR has a reliability level of 97.5%. The fluctuations and correlations used by the models are calculated on statistical bases and future prospects are calculated based on economic studies. The methodology applied and current statistical models are validated daily using backtesting techniques. We present below the VaR of the Consolidated Own Portfolio positions (Treasury):

In addition, a daily Gap Analysis is performed to measure the effect of the movement in the internal interest rate and foreign exchange coupon curves (interest spread paid above the foreign exchange variation) on the portfolio. Complementing the market risk monitoring, control and management structure and in accordance with Central Bank regulations, a daily verification is made of the values at risk for the fixed and foreign exchange positions of the Organization’s entire portfolio and of minimum capital requirements.

Liquidity risk management is designed to control the different unhedged liquidation terms of the Bank's rights and obligations as well as the liquidity of the financial instruments used to manage the financial positions. Knowledge and monitoring of this risk is critical since it enables the Organization to settle transactions on a timely and secure basis. At Bradesco, liquidity risk management involves a series of controls, mainly, the establishment of technical limits and an ongoing assessment of the positions assumed and financial instruments used.

The book value, net of allowances for mark-to-market, of the main financial instruments and their corresponding market value at June 30, 2003 are summarized as follows:

Bradesco carries out transactions involving financial instruments, which are recorded in balance sheet or memorandum accounts, for its own account and for customers. The derivative financial instruments are used by the Bank to hedge its asset and liability positions against the effect of exchange variations. The derivatives generally represent future commitments for exchanging currencies or indices, or purchasing and selling other financial instruments according to the terms and dates set forth in the contracts. Under the option contracts, the purchaser is entitled, but not obliged, to purchase or sell a financial instrument at a specific strike price in the future.

(I) The amounts of the instruments recorded in balance sheet and memorandum accounts at June 30, 2003 are summarized below:

Derivatives include operations falling due in D+1 to be settled in currency at June 30, 2003 price levels.

Amounts relating to swap contracts are recorded in securities - derivative financial instruments and related outstanding amounts receivable total R$ 572,010 thousand and R$ 321,854 thousand on an unconsolidated basis and amounts payable, classified in liabilities – derivative financial instruments, total R$ 105,437 thousand and R$ 48,619 thousand on an unconsolidated basis.

(II) We present below the composition of derivative financial instruments (assets and liabilities) stated at restated cost and market value:

(IV) We present below the type of margin given as collateral for derivative financial instruments, comprising mainly futures contracts and corresponding amounts:

V) We present below the amounts of net revenue and expense recorded in income for the first half:

(VI) We present below the overall amounts of the derivative financial instruments, separated by place of trading:

Banco Bradesco and its subsidiaries sponsor a supplementary retirement pension plan for employees and directors. The unrestricted benefits generating plan (PGBL) is of the defined contribution type, which permits the accumulation of savings by participants over their professional careers through contributions paid by themselves and the sponsoring company. The related resources are invested in an Exclusive Financial Investment Fund – FIFE.

The program is managed by Bradesco Vida e Previdência S.A. and BRAM Bradesco Asset Management Ltda. is responsible for the financial administration of the FIFE funds.

The contributions paid by employees and by Bradesco and its subsidiaries total 4% of salary, except for participants who in 2001 opted to migrate to the PGBL plan from the defined benefits plan and whose contributions to the PGBL plan were maintained at the levels in force for the defined benefits plan at the time of migration, respecting nevertheless the 4% minimum.

The actuarial liabilities of the defined contribution plan (PGBL) at June 30, 2003 total R$ 764,978 thousand and are fully covered by the net equity of the corresponding FIFE fund.

As well as the aforementioned defined contribution plan (PGBL), former participants of the defined benefits plan are guaranteed a proportional deferred benefit, corresponding to their accumulated rights in the latter plan. For participants of the defined benefits plan, transferred or not to the PGBL plan, retired participants and pensioners, the present value of the plan’s actuarial liabilities at June 30, 2003 totals R$ 1,548,361 thousand and is fully covered by technical reserves.

The subsidiary Banco BEA S.A. maintains a supplementary pension plan managed by Caixa de Previdência dos Funcionários do BEA – CABEA, which is currently undergoing a sponsorship withdrawal process, with base date established at November 30, 2002 and whose sponsor’s contributions ceased from December 1, 2002. The participants ceased to contribute as from the same date. The plan’s actuarial liabilities are fully covered by technical reserves.

The subsidiary Banco Baneb S.A. and its subsidiaries are sponsors of supplementary pension plans of the defined contribution (PGBL) and defined benefits type, through Fundação Baneb de Seguridade Social – BASES (for former Baneb employees). The actuarial liabilities of the defined contribution and defined benefit plans are fully covered by the net assets of the plans.

The funds guaranteeing the private pension plans are invested in compliance with applicable legislation (government securities and corporate bonds, listed company stock and real estate).

Expenses with contributions made during the period totaled R$ 132,347 thousand (2002 - R$ 65,849 thousand), BRADESCO – R$ 103,786 thousand (2002 - R$ 48,497 thousand).

In addition, Bradesco and its subsidiaries offer their employees and directors a number of other benefits including: healthcare insurance, dental care, group life and personal accident insurance, as well as professional training, the expenses for which, including the aforementioned contributions, totaled R$ 471,388 thousand (2002 - R$ 372,636 thousand), BRADESCO – R$ 365,338 thousand (2002 - R$ 283,494 thousand) for the six-month period.

d) Expected realization of deferred tax assets on temporary differences, tax losses and negative basis of social contribution

Projected realization of deferred tax assets is estimated and not directly related to expected book income.

The present value of deferred tax assets, calculated based on the average funding rate, net of tax effects totals R$ 4,873,184 thousand (BRADESCO – R$ 2,354,962 thousand), of which R$ 3,641,749 thousand (BRADESCO – R$ 2,045,201 thousand) comprises temporary differences, R$ 614,781 thousand comprises tax losses and negative basis of social contribution and R$ 616,654 thousand (BRADESCO – R$ 309,761 thousand) comprises deferred social contribution assets (MP 2158-35).

The Bradesco Organization has deferred tax liabilities in the amount of R$ 397,668 thousand (BRADESCO – R$ 46,802 thousand) relating to: income tax and social contribution on mark-to-market adjustments of securities and derivative financial instruments - R$ 190,760 thousand (BRADESCO – R$ 40,779 thousand); excess depreciation - R$ 159,611 thousand; revaluation reserve - R$ 25,407 thousand; and others – R$ 21,890 thousand (BRADESCO – R$ 6,023 thousand).

The net assets of the investment funds and portfolios managed by the Bradesco Organization at June 30, 2003 totaled R$ 83,360,443 thousand (2002 – R$ 60,941,833 thousand), BRADESCO – R$ 79,235,906 thousand (2002 – R$ 58,771,519 thousand).

Departamento de Contadoria Geral (Accounting Department)
Moacir Nachbar Junior
Accountant-CRC 1SP198208/O-5

The undersigned members of the Audit Committee of Banco Bradesco S.A., in the performance of their legal and statutory duties, having reviewed the Directors’ Report and the Financial Statements for the first half of 2003, as well as the technical study addressing the feasibility of the generation of taxable income, brought to present value, for the purpose of realizing deferred tax assets, in compliance with CVM Instruction 371 of June 27, 2002, Resolution 3,059 of December 20, 2002, of the National Monetary Council and Circular 3,171 of December 30, 2002, of the Brazilian Central Bank and based on the unqualified report of KPMG Auditores Independentes, declare that said documents, based on the corporate legislation in force, present fairly the financial position of the Company, recommending the approval thereof by the Board of Directors.

We have examined the balance sheets of Banco Bradesco S.A. and the consolidated balance sheets of Banco Bradesco S.A. and its subsidiaries as of June 30, 2003 and 2002 and the related statements of income, changes in stockholders’ equity and changes in financial position for the semesters then ended, which are the responsibility of its management. Our responsibility is to express an opinion on these financial statements.

Our examinations were conducted in accordance with auditing standards generally accepted in Brazil and included: (a) planning of the audit work, considering the materiality of the balances, the volume of transactions and the accounting systems and internal accounting controls of the Bank and its subsidiaries; (b) verification, on a test basis, of the evidence and records which support the amounts and accounting information disclosed; and (c) evaluation of the most significant accounting policies and estimates adopted by management of the Bank and its subsidiaries, as well as the presentation of the financial statements taken as a whole.

In our opinion, the aforementioned financial statements present fairly, in all material respects, the financial position of Banco Bradesco S.A. and the consolidated financial position of Banco Bradesco S.A. and its subsidiaries as of June 30, 2003 and 2002 and the results of its operations, changes in its stockholders’ equity and changes in its financial position for the semesters then ended, in conformity with accounting practices adopted in Brazil.

José Luiz Acar Pedro - Executive Vice-President
and Director of Investor Relations

Phone: (#55 11) 3684-9229 and 3684-9231
Fax: (#55 11) 3684-4570 and 3684-4630
e-mail: 4260.jean@bradesco.com.br

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BANCO BRADESCO S.A.

By:		/S/ José Luiz Acar Pedro
		José Luiz Acar Pedro Executive Vice President and Investor Relations Director

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.


	1st Half 2002	1st Half 2003	% Var.	1st Qtr. 2003	2nd Qtr. 2003	% Var.
INCOME FROM LENDING AND TRADING ACTIVITIES	13,018	12,182	(6.4)	7,083	5,099	(28.0)
Credit operations	6,862	5,628	(18.0)	2,940	2,688	(8.6)
Leasing operations	206	143	(30.6)	77	66	(14.3)
Securities	3,921	2,786	(28.9)	1,791	995	(44.4)
Financial income on insurance, private pension plans and savings bonds	1,103	2,613	136.9	1,441	1,172	(18.7)
Derivative financial instruments	(795)	13	(101.6)	374	(361)	(196.5)
Foreign exchange transactions	1,580	268	(83.0)	99	169	70.7
Compulsory deposits	141	731	418.4	361	370	2.5

EXPENSES	9,661	7,593	(21.4)	4,525	3.068	(32.2)
Interest and charges on:
Deposits	4,949	4,496	(9.2)	2,670	1,826	(31.6)
Price-level restatement and interest on technical reserves for insurance, private pension plans and savings bonds	743	1,658	123.1	902	756	(16.2)
Borrowings and onlendings	2,619	38	(98.5)	141	(103)	(173.0)
Leasing operations	6	6	-	3	3	-
Provision for loan losses	1,344	1,395	3.8	809	586	(27.6)

INCOME FROM FINANCIAL INTERMEDIATION	3,357	4,589	36.7	2,558	2,031	(20.6)

OTHER OPERATING INCOME (EXPENSES)	(2,201)	(2,590)	17.7	(1,418)	(1,172)	(17.3)
Commissions and fees	1,786	2,093	17.2	1,013	1,080	6.6
Retained insurance premiums, private pension plans and savings bonds	4,212	5,679	34.8	2,770	2,909	5.0
Variation in technical reserves for insurance, private pension plans and savings bonds	(427)	(1,725)	304.0	(988)	(737)	(25.4)
Claims – Insurance operations	(1,758)	(2,256)	28.3	(1,019)	(1,237)	21.4
Savings bond redemptions	(372)	(452)	21.5	(198)	(254)	28.3
Insurance and pension plan selling expenses	(321)	(363)	13.1	(180)	(183)	1.7
Expenses with pension plan benefits and redemptions	(760)	(851)	12.0	(390)	(461)	18.2
Personnel expenses	(1,884)	(2,201)	16.8	(1,053)	(1,148)	9.0
Other administrative expenses	(1,854)	(2,254)	21.6	(1,101)	(1,153)	4.7
Tax expenses	(404)	(506)	25.2	(268)	(238)	(11.2)
Equity in the earnings of subsidiary and associated companies	23	(33)	(243.5)	(5)	(28)	460.0
Other operating income	660	1,494	126.4	657	837	27.4
Other operating expenses	(1,102)	(1,215)	10.3	(656)	(559)	(14.8)

OPERATING INCOME	1,156	1,999	72.9	1,140	859	(24.6)

NON-OPERATING INCOME	(10)	(777)	7,670	(682)	(95)	(86.1)

INCOME BEFORE TAXES AND PROFIT SHARING	1,146	1,222	6.6	458	764	66.8

PROVISION FOR INCOME TAX AND SOCIAL CONTRIBUTION	(234)	(190)	(18.8)	53	(243)	(558.5)

MINORITY INTEREST	(8)	(5)	(37.5)	(3)	(2)	(33.3)

NET INCOME	904	1,027	13.6	508	519	2.2

ANNUALIZED RETURN ON STOCKHOLDERS’ EQUITY (%)	18.7	17.1	-	18.5	17.6	-

Income from Credit and Leasing Operations

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
7,062	5,765	(18.4)	3,014	2,751	(8.7)

This decrease mainly reflects: (i) negative exchange variation of 18.72% in 1H03 against positive exchange variation of 22.58% in 1H02, impacting U.S. dollar-denominated or dollar-indexed operations, comprising 23.67% of total credit and leasing operations.			This decrease mainly reflects negative exchange variation of 14.35% in 2Q03 against negative exchange variation of 5.10% in 1Q03, impacting U.S. dollar-denominated or dollar-indexed operations.

Results of Securities and Derivative Financial Instrument Operations

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
3,126	2,799	(10.5)	2,165	634	(70.7)

The variation was mainly due to: (i) negative exchange variation for the period; and (ii) increase in the compulsory deposit rate; offset by (iii) market recovery; and by (iv) increase in financial volume.			The decrease was mainly generated by negative exchange variation in 2Q03, impacting securities denominated or indexed in U.S. dollars and derivative financial instruments, used to hedge operations. In addition, the positive impact verified in 1Q03 as a result of market recovery, was not repeated.

Financial Income on Insurance, Private Pension Plans and Savings Bonds

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
1,103	2,613	136.9	1,441	1,172	(18.7)

The increase for the period was derived from (i) the growth in the average volume of investments; (ii) market recovery; and (iii) the increase in investment rates.			This variation was mainly generated by: (i) the downturn in IGPM-indexed securities; (ii) non-repetition in 2Q03 of the positive impact following the market recovery verified in 1Q03; partially offset by (iii) the increase in the volume of securities subject to technical reserves.

Results of Foreign Exchange Transactions

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
1,580	268	(83.0)	99	169	70.7

This account should be analyzed net of foreign funding expenses used to finance import/export operations, as described in Note 14a to the financial statements. Net of these deductions, results would total R$ 173 in 1H02 and R$ 178 in 1H03.			This account should be analyzed net of foreign funding expenses used to finance import/export operations. Net of these deductions, results would total R$ 72 in 1Q03 and R$ 106 in 2Q03, affected by an increase in foreign exchange portfolio volume.

Results of Compulsory Deposits

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
141	731	418.4	361	370	2.5

This variation was mainly due to: (i) the creation of an additional rate of 8% for demand and time deposits and of 10% for savings account deposits, both remunerated based on the SELIC rate; (ii) the 5% increase in the compulsory savings account deposit rate; (iii) the increase in the TR reference rate used to remunerate savings account deposits, from 1.16% in 1H02 to 2.61% in 1H03; and (iv) the increase in the average volume of deposits.			This increase mainly reflects: (i) the variation in the balance of deposits as a result of the consolidation of BBV Banco; and, to a lesser degree, (ii) the increase in the TR reference rate used to remunerate savings account deposits, from 1.28% in 1Q03 to 1.31% in 2Q03.

Interest and Charges on Deposits

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
4,949	4,496	(9.2)	2,670	1,826	(31.6)

This decrease mainly reflects: negative exchange variation in 1H03, particularly impacting securities issued abroad, offset by an increase in deposit volume /rates.			This decrease mainly reflects negative exchange variation in 2Q03, particularly impacting securities issued abroad.

Price-level Restatement and Interest on Technical Reserves for Insurance, Private Pension Plans and Savings Bonds

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
743	1.658	123,1	902	756	(16,2)

The increase for the period was derived from: (i) the increase in the average volume of technical reserves; (ii) market recovery and the increase in the investment rates of assets subject to technical reserves, reflected accordingly.			The variation was mainly generated by: (i) the downturn in IGPM-indexed reserves; (ii) the positive impact following market recovery verified in 1Q03, affecting assets subject to technical reserves, reflected accordingly, partially offset by the increase in the volume of technical reserves.

Expenses for Borrowings and Onlendings

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
2,619	38	(98.5)	141	(103)	(173.0)

This decrease was mainly due to: (i) negative exchange variation in 1H03 against positive exchange variation in 1H02.			This decrease was mainly generated by negative exchange variation on foreign borrowings and onlendings.

Financial Margin

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
4,701	5,984	27.3	3,367	2,617	(22.3)

Margin growth reflects increased volume and market recovery, partially offset by the increase in the compulsory deposit rate and negative exchange variation in 1H03. The annualized financial margin on average total assets increased from 8.1% in 1H02 to 8.3% in 1H03. Adjusting the additional provision for market risk fluctuation recorded/reversed for these periods, the annualized financial margin would be 8.3% and 9.0%, respectively.			The decrease in this margin reflects the increase in the compulsory deposit rate, greater negative exchange variation in 2Q03 and non-repetition in 2Q03 of the positive impact following market recovery verified in 1Q03. The annualized financial margin on average total assets decreased from 9.7% in 1Q03 to 7.2% in 2Q03. Adjusting the additional provision for market risk fluctuation recorded/reversed for these periods, the annualized financial margin would be 10.2% and 8.1%, respectively.

Expenses for Provision for Loan Losses

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
1,344	1,395	3.8	809	586	(27.6)

Excluding the additional provisions of R$ 57 and R$ 312, recorded in 1H02 and 1H03, respectively, the decrease of R$ 203 in this expense reflects the Bank’s selective credit granting policy.			Excluding the additional provisions of R$ 298 and R$ 14, recorded in 1Q03 and 2Q03, respectively, there is an increase of R$ 63.

Income on Commissions and Fees

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
1,786	2,093	17.2	1,013	1,080	6.6

This growth reflects increased revenue from: (i) cards - R$ 99; (ii) checking accounts – R$ 79, mainly maintenance charges; (iii) credit operations - R$ 79, mainly from contracting and opening of credit; (iv) collection - R$ 18; and (v) the consolidation of BBV Banco – R$ 10; offset by decreased revenue from (vi) managed funds – R$ 11.			Growth for the quarter reflects increased revenue from: (i) income on fund management – R$ 23; (ii) checking accounts – R$ 15, mainly maintenance charges; (iii) credit operations – R$ 13, mainly from contracting and opening of credit; (iv) the consolidation of BBV Banco – R$ 10; and (v) collection - R$ 5, offset by decreased revenue from (vi) credit cards – R$ 8.

Income on Insurance Premiums, Private Pension Plans and Savings Bonds

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
4,212	5,679	34.8	2,770	2,909	5.0

This variation was mainly derived from a greater sales volume of “Vida e Previdência” (VGBL/PGBL) line products, as well as savings bonds and auto-line insurance.			This variation was mainly derived from an increase in auto-line sales and savings bonds.

Variation in Technical Reserves for Insurance, Pension Plans and Savings Bonds

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
(427)	(1,725)	304.0	(988)	(737)	(25.4)

This variation was derived from the growth in technical reserves, mainly as a result of an increase in “VGBL” and auto product sales, as well as savings bond certificates.			This variation was generated by: (i) fewer supplementary pension plan product sales in 2Q03; offset by (ii) increased sales of auto-line products and savings bond certificates.

Insurance Claims

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
(1,758)	(2,256)	28.3	(1,019)	(1,237)	21.4

The increase in claims was mainly generated by: (i) increased Life and VGBL insurance premium redemptions, as well as the lengthening of the provision for claims incurred but not reported (IBNR) from 6 to 12 months in the health line and to a lesser degree: (ii) the increase in Auto-line claims.			The increase in claims was mainly generated by: (i) increased Life and VGBL insurance premium redemptions, as well as the lengthening of the provision for claims incurred but not reported (IBNR) from 6 to 12 months in the health line and to a lesser degree: (ii) the increase in Auto-line claims.

	June/2003
	Financial		Insurance Group		Other	Amount	Total
	Local	Foreign	Local	Foreign	Activities	Eliminated	Consolidated
Income from financial intermediation	3,500	136	952	1	-	(1)	4,588
Other operating income (expenses)	(2,868)	(46)	(690)	(3)	45	1	(3,561)
Commissions and fees	1,892	3	76	-	244	(122)	2,093
Personnel expenses	(1,888)	(12)	(216)	-	(85)	-	(2,201)
Other administrative expenses	(2,021)	(30)	(256)	(2)	(92)	147	(2,254)
Other revenue (expenses)	(851)	(7)	(294)	(1)	(22)	(24)	(1,199)

Net income	632	90	262	(2)	45	-	1,027

Savings Bond Redemptions

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
(372)	(452)	21.5	(198)	(254)	28.3

This growth is a direct reflection of the increase in the volume of single payment bonds falling due in 1H03, which were redeemed.			This growth is a direct reflection of the increase in the volume of single payment bonds falling due in 2Q03, which were redeemed.

Insurance and Pension Plan Selling Expenses

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
(321)	(363)	13.1	(180)	(183)	1.7

This increase was generated for the most part by growing Auto and Basic line insurance sales even though the ratio of sales to premiums remained consistent with the prior period.			Selling expenses remained practically stable for the quarter.

Expenses with Pension Plan Benefits and Redemptions

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
(760)	(851)	12.0	(390)	(461)	18.2

The variation in this account was mainly due to the increase in the payment of pension plan redemptions as a result of specific PGBL plan features which permit withdrawals at any time.			The variation in this account was mainly due to the increase in the payment of pension plan redemptions as a result of specific PGBL plan features which permit withdrawals at any time.

Personnel Expenses

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
(1,884)	(2,201)	16.8	(1,053)	(1,148)	9.0

This increase was mainly generated by: (i) salary increases, pursuant to trade-union agreements (September/02); (ii) increased expenses for benefits; and (iii) an increase in the number of employees, subsequent to the acquisition of BBV Banco in 2Q03 – R$ 29 and Banco Mercantil – R$ 70, following consolidation in 2Q02.			This increase was generated mainly by: (i) increased expenses for benefits – R$ 36; (ii) an increase in the number of employees, following the consolidation of BBV Banco, with expenses of R$ 29; (iii) training – R$ 10; and (iv) lower expenses as a result of the concentration of vacation pay in 1Q03.

Other Administrative Expenses

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
(1,854)	(2,254)	21.6	(1,101)	(1,153)	4.7

The increase in this expense mainly reflects expansion in the customer service network, in particular: (i) depreciation and amortization - R$ 60; (ii) third-party services - R$ 50; (iii) rents - R$ 44, mainly relating to branches which were auctioned subsequent to June 2002; (iv) communications – R$ 39, mainly as a result of increases in public utility tariffs; (v) leasing – R$ 36; and (vi) consolidation of BBV Banco – R$ 31.			The increase for this quarter reflects increased expenses for: (i) consolidation of BBV Banco - R$ 31; (ii) publicity and advertising - R$ 11; and (iii) third-party services – R$ 9.

Tax Expenses

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
(404)	(506)	25.2	(268)	(238)	(11.2)

The growth rate mainly reflects increases in expenses for: (i) PIS/COFINS, consistent with taxable income growth for the period and (ii) CPMF.			The variation in this quarter mainly reflects less expense for PIS, COFINS and CPMF.

Equity in the Earnings of Subsidiary and Associated Companies

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
23	(33)	(243.5)	(5)	(28)	460.0

This variation was mainly generated by equity in earnings determined in IRB Brasil Resseguros S.A. of R$ 22 in 1H02 against equity in loss of R$ 28 in 1H03.			The variation mainly reflects equity in loss determined in IRB Brasil Resseguros S.A. – R$ 1 in 1Q03 and R$ 27 in 2Q03.

Other Operating Income

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
660	1,494	126.4	657	837	27.4

The increase for the period is mainly due to reversal of the provision for exchange variation – R$ 504 and other operating provisions - R$ 322 in 1H03.			The increase for the quarter is mainly due to reversal of the provision for exchange variation - R$ 166 in 1Q03 and R$ 338 in 2Q03.

Other Operating Expenses

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
(1,102)	(1,215)	10.3	(656)	(559)	(14.8)

The variation is mainly due to: (i) increase in financial expenses – R$ 48; (ii) cost of services rendered – R$ 37; and (iii) amortization of goodwill in subsidiary and associated companies - R$ 23.			The quarterly variation is mainly due to lower financial expenses.

Income Tax and Social Contribution

1st Half			Quarter 2003
2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation
(234)	(190)	(18.8)	53	(243)	(558.5)

The variation in income tax and social contribution expense reflects tax charges on pre-tax income adjusted by permanent additions and exclusions, as described in Note 36 to the financial statements.			The variation in income tax and social contribution expense reflects tax charges on pre-tax income adjusted by permanent additions and exclusions.

Future interest rates

Period	Average 1st Qtr. 2003	Average 2nd Qtr. 2003	June 2003
30 days	26.1%	26.0%	25.7%
60 days	26.4%	25.7%	25.4%
90 days	26.7%	25.4%	24.9%
120 days	26.8%	25.0%	24.4%
360 days	28.1%	23.6%	22.2%


	In millions of reais

	2002			2003
	1st Qtr.	2nd Qtr.	1st Half	1st Qtr.	2nd Qtr.	1st Half
Credit portfolio	49,546	52,576	52,576	49,655	53,048	53,048

Opening balance	2,941	3,480	2,941	3,665	3,902	3,665

Amount recorded	633	711	1,344	808	587	1,395
Amount written off	(296)	(694)	(990)	(571)	(551)	(1,122)
Balance derived from acquired institutions	202	32	234	-	171	171

Closing Balance	3,480	3,529	3,529	3,902	4,109	4,109

Specific provisions	2,113	2,231	2,231	1,944	2,006	2,006
Generic provisions	1,124	1,009	1,009	1,156	1,286	1,286
Additional provision	243	289	289	802	817	817

Credit recoveries	88	49	137	112	128	240


Human Resources June 2003

BY AGE	BY GENDER	BY EDUCATIONAL BACKGROUND	BY YEARS OF SERVICE WITH BRADESCO	BY MANAGERIAL POSITION

Younger than 30 46%			Less than 5 years 42%
		High School 33%
From 31 to 40 38%	Men 55%		From 6 to 10 years 9%	Non-managerial 51%
		University 66%
From 41 to 50 14%	Women 45%		From 11 to 20 years 39%	Managerial 49%
		Other 1%
Older than 50 2%			More than 20 years 10%


		Currency
	Balance Sheet
		Local	Foreign (1)

ASSETS
Current and long-term receivables	149,316	125,494	23,822
Funds available	1,773	1,530	243
Interbank investments	20,996	18,586	2,410
Securities and derivative financial instruments	42,796	37,924	4,872
Interbank and interdepartmental accounts	15,024	15,018	6
Credit and leasing operations	42,519	35,777	6,742
Other assets	26,208	16,659	9,549
Permanent assets	5,173	5,159	14
Investments	494	494	-
Property and equipment in use and leased assets	2,666	2,654	12
Deferred charges	2,013	2,011	2
Total assets	154,489	130,653	23,836

LIABILITIES
Current and long-term liabilities	121,966	99,902	22,064
Deposits	56,822	53,768	3,054
Deposits received under security repurchase agreements	18,569	18,265	304
Funds from acceptance and issuance of securities	5,745	707	5,038
Interbank and interdepartmental accounts	1,735	944	791
Borrowings and onlendings	14,572	6,265	8,307
Derivative financial instruments	310	310	-
Other liabilities
Subordinated debt	3,338	2,521	817
Other	20,875	17,122	3,753
Technical reserves for insurance, savings bonds and
private pension plans	19,857	19,857	-
Deferred income	37	37	-
Minority interest in subsidiaries	107	107	-
Stockholders' equity	12,522	12,522	-
Total	154,489	132,425	22,064

Net position of assets and liabilities			1,772
Net position of derivatives (2)			2,370
Other memorandum accounts, net (3)			(973)
Net exchange position (asset) (4)			3,169

(1)	Amounts expressed and/or indexed mainly in USD.
(2)	Excluding derivative operations maturing in D +1, to be settled in currency at June 30, 2003 price levels.
(3)	Leasing commitments and others controlled in memorandum accounts.
(4)	Excluding investments in foreign branches and subsidiaries (Note 16a), the net exchange position would be negative in the amount of R$ 520 million (liability).


	Up to 30 days	From 31 to 180 days	From 181 to 360 days	More than 360 days	Indeterminate	Total

ASSETS
Current assets and long-term receivables	94,277	19,241	11,404	24,394	-	149,316
Funds available	1,773	-	-	-	-	1,773
Interbank investments	19,978	408	416	194	-	20,996
Securities and derivative financial instruments	32,803	2,138	2,583	5,272	-	42,796
Interbank and interdepartmental accounts	14,699	5	6	314	-	15,024
Credit and leasing operations	8,623	15,215	6,353	12,328	-	42,519
Other receivables and other assets	16,401	1,475	2,046	6,286	-	26,208
Permanent assets	52	261	313	3,425	1,122	5,173
Investments	-	-	-	-	494	494
Property and equipment in use and leased assets	22	113	136	1,767	628	2,666
Deferred charges	30	148	177	1,658	-	2,013
Total	94,329	19,502	11,717	27,819	1,122	154,489

LIABILITIES
Current and long-term liabilities	71,557	11,217	9,952	29,240	-	121,966
Deposits	34,938	3,876	4,308	13,700	-	56,822
Deposits received under security repurchase
agreements	17,517	67	22	963	-	18,569
Funds from the acceptance and issuance of securities	796	2,133	1,072	1,744	-	5,745
Interbank and interdepartmental accounts	1,735	-	-	-	-	1,735
Borrowings and onlendings	1,565	3,846	3,417	5,744	-	14,572
Derivative financial instruments	225	29	27	29	-	310
Other liabilities:
- Subordinated debt	10	35	-	3,293	-	3,338
- Other	14,771	1,231	1,106	3,767	-	20,875
Technical reserves for insurance, private pension
plans and savings bonds	-	-	-	19,857	-	19,857
Deferred income	36	1	-	-	-	37
Minority interest in subsidiaries	-	-	-	-	107	107
Stockholders' equity	-	-	-	-	12,522	12,522
Total	71,593	11,218	9,952	49,097	12,629	154,489

Accumulated net assets	22,736	31,020	32,785	11,507	-	-


ASSETS	June 2002	June 2003	% Variation	March 2003	June 2003	% Variation

Current assets and long-term receivables	118,797	149,316	25.7	140,132	149,316	6.6
Funds available	2,131	1,773	(16.8)	3,718	1,773	(52.3)
Interbank investments	5,402	20,996	288.7	23,411	20,996	(10.3)
Securities and derivative financial instruments	37,909	42,796	12.9	34,430	42,796	24.3
Interbank and interdepartmental accounts	6,978	15,024	115.3	15,059	15,024	(0.2)
Restricted deposits:
Brazilian Central Bank	5,744	13,792	140.1	13,620	13,792	1.3
Other	1,234	1,232	(0.2)	1,439	1,232	(14.4)
Credit and leasing operations	42,240	42,519	0.7	39,582	42,519	7.4
Credit and leasing operations	45,704	46,436	1.6	43,322	46,436	7.2
Allowance for loan and leasing losses	(3,464)	(3,917)	13.1	(3,740)	(3,917)	4.7
Other receivables and assets	24,137	26,208	8.6	23,932	26,208	9.5
Foreign exchange portfolio	12,662	13,131	3.7	12,127	13,131	8.3
Other receivables and assets	11,540	13,269	15.0	11,967	13,269	10.9
Allowance for losses	(65)	(192)	195.4	(162)	(192)	18.5
Permanent assets	5,905	5,173	(12.4)	4,868	5,173	6.3
Investments	816	494	(39.5)	483	494	2.3
Property and equipment in use and leased assets	2,635	2,666	1.2	2,538	2,666	5.0
Deferred charges	2,454	2,013	(18.0)	1,847	2,013	9.0
Deferred charges	449	562	25.2	561	562	0.2
Goodwill on acquisition of subsidiaries, net of amortization	2,005	1,451	(27.6)	1,286	1,451	12.8

Total	124,702	154,489	23.9	145,000	154,489	6.5

Allowance for Loan Losses (PDD)

1st Half			Quarter 2003

2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation

3,529	4,109	16.4	3,902	4,109	5.3

The nominal increase in PDD for the period was 16.4%, however, if we disregard the additional provisions of R$ 289 recorded in 1H02 and of R$ 817 recorded in 1H03, the allowance would present an increase of 1.5%. Total PDD on credit operations increased from 6.7% to 7.7% for the period. The total allowance on the abnormal course credit portfolio, rated from D to H, increased from 114.3% in 1H02 to 143.1% in 1H03.			The variation for the quarter was mainly derived from the consolidation of BBV Banco. Total PDD on credit operations decreased from 7.9% in 1Q03 to 7.7% in 2Q03. On the other hand, the total allowance on the abnormal course credit portfolio, rated from D to H, increased from 142.3% in 1Q03 to 143.1% in 2Q03.

Deposits

1st Half			Quarter 2003

2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation

50,849	56,822	11.7	54,871	56,822	3.6

The increase in this account balance for the period reflects: (i) increase in the number of customers; (ii) migration of resources from managed funds; and (iii) consolidation of BBV Banco – R$ 3,469.			The variation was mainly derived from the consolidation of BBV Banco – R$ 3,469 and was offset by the partial migration of resources from deposits, returning to managed funds.

Deposits Received Under Security Repurchase Agreements

1st Half			Quarter 2003

2002	2003	% Variation	1st Qtr.	2nd Qtr.	% Variation

8,695	18,569	113.6	14,342	18,569	29.5

The increase in this account balance was due to the intensification of this type of funding.			The increase in this account balance for the quarter was derived from the intensification of this type of funding.