Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 403

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 403
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pread and
aimed at individuals and legal entities with a proven payment capacity and solvency, seeking to support them with guarantees that are
adequate to the risk assumed, considering the amounts, objectives and the maturities of loan granted.

Credit Risk Rating

The Company has a process of Governance
practices and follow-ups. Practices include the Governance of Concession Limits and Credit Recovery, which, depending on the size of the
operation or of the total exposure of the counterpart, require approvals that reach the level of the Board of Directors. In addition,
follow-ups are made frequently of the portfolio, with evaluations as to their evolution, delinquency, provisions, vintage studies, and
capital, among others.

In addition to the process and governance
of limits for approval of credit and recovery, in the risk appetite defined by the Company, the concentration limits of operations for
the Economic Group, Sector and Transfer (concentration per countries) are monitored. In addition to the indicators of concentration, a
specific indicator was established for the level of delinquencies above 90 days for Individuals (PF), the indicator of problem asset and
an indicator of Margin of Economic Capital of Credit Risk, in order to monitor and track the capital in the economic and regulatory visions.

The credit risk assessment methodology,
in addition to providing data to establish the minimum parameters for lending and risk management, also enables the definition of Special
Credit Rules and Procedures according to customer characteristics and size. Thus, the methodology provides the basis not only for the
pricing of operations, but also for defining the guarantees.

The methodology used also follows the
requirements established by the Resolution No. 4,945 of the National Monetary Council and includes analysis of social and environmental
risks in projects, aimed at evaluating customers’ compliance with related laws and the Equator Principles, a set of rules that establish
the minimum social and environmental criteria which must be met for lending.

In accordance with its commitment to the
continuous improvement of methodologies, the credit risk rating of operations contracted by the Company’s economic groups/ customers
is distributed on a graduation scale in levels. This ensures greater adherence to the requirements set forth in the Basel Capital Accord
and preserves the criteria established by Resolution No. 2,682 of the National Monetary Council for the constitution of the applicable
provisions.

In a simplified manner, the risk classifications
of the operations are determined on the basis of the credit quality of economic groups/ customers defined by the Customer Rating, warranties
relating to the contract