Company: BBD
Filing Date: 2025-10-30
Form Type: 6-K
Source: 0001292814-25-003701
Chunk: 89

Company: BANK BRADESCO
Filing Date: 2025-10-30
Form: 6-K
Chunk 89
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 made for losses
incurred, as a component of the provision for expected losses. This provision is calculated based on percentages, according to BRADESCO
| Consolidated Financial Statements 79 Consolidated Financial Statements | Notes to the Consolidated Financial Statements the portfolios
(C1 to C5) and the delay ranges stipulated in BCB Resolution No. 352/23. When there is significant amortization of the operation, or when
new relevant facts justify the change in the level of risk, the reclassification of the operation to the lower risk category (financial
recovery), resulting in the return of the recognition of revenues (accrual) to the instruments of the third stage and reversals of provision.
The financial instrument will be written off when there is no reasonable expectation of recovery. The corresponding registration is made
in compensation accounts and identification controls, remaining until the exhaustion of all collection procedures for a minimum period
of five years. In the case of subsequent recoveries or restructurings of financial assets previously written off, the recovered amounts
are credited in the income statement up to the limit of the amount previously written off. The assets are then allocated in the third
stage, with provision for expected losses equal to the total value of the instrument. Any gains from the restructuring are only recognized
when effectively received, regardless of whether they are active or recovered from loss. The allocation in stages is reviewed: monthly,
in the case of delays in payment of the principal and charges; every six months for instruments of the same counterpart whose amount is
higher than 5% of the shareholders’ equity of the institution; once every 12 months for the other instruments, whenever new facts
indicate a significant change in the quality of credit; and when the instrument is restructured. Determination Bradesco evaluates the
expected loss associated with the credit risk of financial instruments based on consistent and verifiable criteria, using measurement
techniques compatible with the nature and complexity of the financial instruments. The assessment of credit risk and expected loss associated
with credit risk can be carried out collectively using an appropriate model for the treatment of credit risk by portfolio. Financial instruments
belonging to the same homogeneous group of risk are grouped together and are defined in the credit policy and in the institution's credit
management procedures as retail operations. The following parameters shall be considered in percentage terms: • Probability of Credit
Recovery: Assessed based on the expected period of the financial instrument and in the current economic situation, as well as forecasts