Company: BBD
Filing Date: 2025-05-30
Form Type: 6-K
Source: 0001292814-25-002283
Chunk: 144

Company: BANK BRADESCO
Filing Date: 2025-05-30
Form: 6-K
Chunk 144
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| 4. Risk factors |

In addition,
legislative changes can have an adverse impact on our operations, performance, our business, financial situation and operating income.

Uncertainty
regarding the economic and fiscal policies and the legal framework could harm the Brazilian economy and, consequently, our business, results
of operations and financial condition.

Currency exchange variations may have an adverse effect on the Brazilian economy and on our results and financial condition.

Fluctuations in the value of the realmay impact our business. After an extended period of appreciation, interrupted only in late 2008 as a reflection of the global crisis, the Brazilian real started to weaken in mid-2011, a trend which continued until mid-2016. After a brief period of stable exchange rates, the real was once again devalued against the U.S. dollar, which was intensified in 2020 and 2021 because of the increased global aversion to risk, due to the Covid-19 pandemic. Weaker currency periods make certain local manufacturers (particularly exporters) more competitive, but also make managing economic policy, particularly inflation, increasingly difficult, even with a decelerated growth. A weaker realalso adversely impacts companies based in Brazilwith debts in foreign currency and/or indexed in
foreign debts.

In 2023,
the real/US dollar exchange rate fluctuated around R$/US$5.25, and was further appreciated at the end of the year, reaching R$/US$4.84
in 2023. A strong trade balance and robust external accounts, as well as strong growth, contributed to this appreciation in 2023. However,
in 2024, global movements to strengthen the dollar and the increase of uncertainties related to the sustainability of Brazilian public
accounts resulted in the strong depreciation of the real, which ended the year quoted at R$/US$6.19. The change of the primary
outcome target for 2025 and the growth of compulsory expenditure above the upper limit defined by the current fiscal framework brought
doubts about the sustainability of public debt in the long term. In addition, the worsening of the current transaction deficit, a result
of domestic demand that is on the rise, was another factor that contributed to the devaluation of around 27.9% of the real against
the US dollar at the end of 2024.

If the Brazilian currency devalues or depreciates, we may incur losses on our liabilities denominated in, or indexed to, foreign currencies, such as our long-term