Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 404

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 404
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, modality of the credit product, behavior of delinquencies in the payment, notes/restrictions and value of credit
contracted.

Customer rating for economic groups are
based on standardized statistical and judgmental procedures, and on quantitative and qualitative information. Classifications are carried
out by economic group and periodically monitored in order to preserve the quality of the loan portfolio.

For individuals, in general, Customer
Ratings are also based on statistical procedures and analysis of variables that discriminate risk behavior. This is done through the application
of statistical models for credit evaluation.

The Customer Rating is used, in sets with
several decision variables, to analyze the granting and/or renewal of operations and credit limits, as well as for monitoring the deterioration
of the customers' risk profile.

Control and Monitoring

The Group's credit risk is controlled
and monitored by an independent Credit Risk area.

This area holds monthly meetings with
all product and segment executives and officers, with a view to inform them about the evolution of the loan portfolio, delinquency, troubled
assets, restructurings, credit recoveries, losses, limits and concentrations of portfolios, allocation of economic and regulatory capital,
among others.

In addition, monitors any internal or
external event that may cause a significant impact on the Company’s credit risk, such as spin-offs, bankruptcies and crop failures,
in addition to monitoring economic activity in the sectors to which the company has significant risk exposures.

Internal Report

Credit risk is monitored on a timely basis
in order to maintain the risk levels within the limits established by the Company. Managerial reports on risk control are provided to
all levels of business, from branches to Senior Management.

With the objective of highlighting the
risk situations, that could result in the customers’ inability to honor its obligations as contracted, the credit risk monitoring
area provides daily reports, to the branches, national managers, business segments, as well as the lending and loan recovery areas. This
system provides timely information about the loan portfolios and credit bureau information of customers, in addition to enabling comparison
of past and current information, highlighting points requiring a more in-depth analysis by managers, such as assets by segment, product,
region, risk classification, delinquency and expected and unexpected losses, among others, providing both a macro-level and detailed view
of the information, and also enabling a specific loan operation to be viewed.

The information is viewed and delivered
via dashboards, allowing queries at several levels such as business segment, divisions, managers, regions