Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 215

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 5
Chunk 215
---
 a year by the real GDP of the previous year;
 (2) Calculated in accordance with Central Bank methodology (based on nominal rates); and
 (3) Calculated in accordance with B3 methodology (ex-Clearing and Custody Chamber – “CETIP”) (based on nominal rates).
 Sources: The Central Bank of Brazil, the Brazilian Geography and Statistics Institute and B3.
  
134 – Form 20-F 2024 | Bradesco
-------------------------------
5.A.10.02 Effects of the global financial markets on our financial condition and operating results

In 2024, the world’s major central banks began normalizing monetary policy, led by the U.S. Federal Reserve. The ongoing global trend of disinflation enabled most countries to cut interest rates, but the pace of this shifting and broader economic impact varied across economies. As a result, the speed and scale of the interest rates reduction also differed from country to country.
 In the U.S., inflation, as measured by the Personal Consumption Expenditures Price Index (“PCE”) ended 2024 at 2.6%, a percentage point below the previous year, but 0.6 percentage points above the target pursued by the U.S. Federal Reserve. In the European Union, inflation decreased more significantly from 5.4% to 2.4% during the period, primarily due to a more pronounced slowdown in the local economy. The region’s GDP grew just 0.9% in 2024, compared to the increase of 2.5% in the U.S.
 Uncertainties related to USA trade tariffs and protectionist measures and geopolitical conflicts around the world may result in new inflationary pressures and pose further risk to global economic growth. Meanwhile, the weakened currency in Europe and China continues to support a stronger U.S. dollar, which will require emerging economies to navigate the evolving landscape with increased caution.
 Reducing inflation and uncertainties regarding the fiscal scenario present additional challenges for Brazil. In the medium term, advances in the structural reform agenda, which signal sustainable trajectories for public debt in the coming years, remain an important factor for the economic landscape.
 
5.A.10.03 Effects of interest rates and currency devaluation/appreciation on net interest income
 During periods of high interest rates, our interest income increases as a result of higher yields on our interest-earning assets. Simultaneously, our interest expense increases as interest rates on our interest-bearing liabilities also rise. Changes in the volumes of our interest-earning assets and interest