Company: BBD
Filing Date: 2025-10-30
Form Type: 6-K
Source: 0001292814-25-003700
Chunk: 121

Company: BANK BRADESCO
Filing Date: 2025-10-30
Form: 6-K
Chunk 121
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 the internal model, it is necessary to take into consideration the rules
described by Central Bank Circular Letters No. 3,646/13 and No. 3,674/13, such as the use of VaR and Stressed VaR net of tax effects,
the average in the last 60 days and its multiplier. VaR Internal Model – Backtesting The risk methodology applied is continuously
assessed using backtesting techniques, which compare the one-day period VaR with the hypothetical profit or loss, obtained from the same
positions used in the VaR calculation, and with the effective profit or loss, also considering the intraday operations for which VaR was
estimated. The main purpose of backtesting is to monitor, validate and assess the adherence of the VaR model, and the number of exceptions
that occurred must be compatible with the number of exceptions accepted by the statistical tests conducted and the confidence level established.
Another objective is to improve the models used by the Company, through analyses carried out with different observation periods and confidence
levels, both for Total VaR and for each risk factor. The daily results corresponding to the last 250 business days, exceeded the respective
VaR with the 99% confidence level none of the time in the hypothetical and effective view, in September/2025. In June/2025, the daily
results corresponding to the last 250 business days exceeded the respective VaR with the 99% confidence level none of the time in the
hypothetical and effective view. 1 The maximum amount between the book’s holding period and ten days, which is the minimum regulatory
horizon required by Central Bank of Brazil, is adopted. BRADESCO | Consolidated Financial Statements in IFRS 86 Consolidated Financial
Statements in IFRS | Notes to the Consolidated Financial Statements According to the document published by the Basel Committee on Banking
Supervision, breakouts would be classified as “Bad luck or the markets moved in a way not predicted by the model”, that is,
the volatility was significantly higher than the expected and/or correlations were different from those assumed by the model. Stress Analysis
– Trading Portfolio The Company also assesses on a daily basis the possible impacts on profit or loss in stress scenarios considering
a holding period of 20 business days, ie, how much prices or interest rates can change in 20 business days based on historical data and
prospective scenarios. This metric is monitored with limits established in the governance process. The scenarios are