Company: BBD
Filing Date: 2025-10-30
Form Type: 6-K
Source: 0001292814-25-003700
Chunk: 115

Company: BANK BRADESCO
Filing Date: 2025-10-30
Form: 6-K
Chunk 115
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 • Stage 1: Financial assets with no significant increase in credit risks; • Stage 2: Financial
assets with significant increase in credit risks; and • Stage 3: Financial assets that are credit impaired. The significant increase
of credit risk is evaluated based on different indicators for classification in stages according to the customers’ profile, the
product type and the current payment status, as shown below: Retail and Wholesale Portfolios: • Stage 1: Financial assets whose obligations
are current or less than 30 days past due and which have a low internal credit risk rating; • Stage 2 (Significant increase in credit
risk): Financial assets that are overdue obligations between 31 and 90 days or whose internal credit risk rating migrated from low risk
to medium or high risk; • Stage 3 (Defaulted or “impaired”): Financial assets whose obligations are overdue for more
than 90 days or that present bankruptcy events, judicial recovery and restructuring of debt; • Re-categorization from stage 3 to
stage 2: Financial assets that settled overdue amounts and whose internal ratings migrated to medium risk; • Re-categorization from
stage 2 to stage 1: Financial assets that settled overdue amounts and whose internal ratings migrated to low risk; and • Re-categorization
from stage 3 to stage 1: Financial assets that returned regular payment leading to reclassification as low risk. The expected losses are
based on the multiplication of credit risk parameters: Probability of default (PD), Loss due to default (LGD) and Exposure at default
(EAD). The PD parameter refers to the probability of default perceived by the Company regarding the customer, according to the internal
models of evaluation, which, in retail, use statistical methodologies based on the characteristics of the customer, such as the internal
rating and business segment, and the operation, such as product and BRADESCO | Consolidated Financial Statements in IFRS 82 Consolidated
Financial Statements in IFRS | Notes to the Consolidated Financial Statements guarantee and, in the case of wholesale, they use specialist
models based on financial information and qualitative analyses. The LGD refers to the percentage of loss in relation to exposure in case
of default, considering all the efforts of recovery, according to the internal model of evaluation that uses statistical methodologies
based on the characteristics of the operation, such as product and guarantee. Customers with significant exposure have estimates based
on individual analyses, which are based on the structure of the operation and