Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 214

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 5
Chunk 214
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ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS
5.A. Operating Results
 This discussion should be read in conjunction with our audited consolidated financial statements, the notes thereto and other financial information included elsewhere in this annual report.
5.A.10 Overview
 The results of our operations are affected by the following factors, among others:
 
5.A.10.01 Brazilian Economic Conditions
 The results of our operations are directly affected by economic conditions in Brazil. Such economic conditions directly impact our customers’ ability to pay their financial obligations on time, which affects our impairment of loans and advances and our balance of outstanding loans and advances. In addition, the impact of economic conditions on the foreign exchange rate affects our net interest income, since part of our financial assets and liabilities are denominated in or indexed to foreign currencies, primarily the U.S. dollar.
 The following table shows Brazilian inflation measured by IPCA, the appreciation/(depreciation) of the real against the U.S. dollar, the foreign exchange rate at the end of each year and the average foreign exchange rate for the periods indicated:
 
                                                                       In R$, except %     
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2024                                                                 2023     2022
Inflation (IPCA)                                                     4.8%     4.6%     5.8%
Appreciation/(depreciation) of the real against the U.S. dollar   (27.9)%     7.2%     6.5%
Period-end exchange rate-US$1.00                                   6.1923   4.8413   5.2177
Average exchange rate-US$1.00 (1)                                  5.3920   4.9953   5.1600
 (1) Average exchange rate.
 Sources: FGV and the Central Bank of Brazil.
 The following table shows GDP variation in real terms, average base interest rates and average interbank interest rates for the periods indicated:
 
                    2024                        2023    2022
------------------------------------------------------------
Change in real GDP (1)                  3.6%    3.2%    3.0%
Average base interest rates (2)        10.0%   13.0%   12.4%
Average interbank interest rates (3)   10.0%   13.0%   12.4%
 (1) Calculated by dividing the change in real GDP during