Company: BBD
Filing Date: 2025-10-30
Form Type: 6-K
Source: 0001292814-25-003701
Chunk: 87

Company: BANK BRADESCO
Filing Date: 2025-10-30
Form: 6-K
Chunk 87
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 differences between the purchase and sale price, credit and liquidity
risks, as well as other factors. Management believes that such valuation adjustments are necessary and appropriate for the correct evaluation
of the fair value of the financial instruments recorded in the consolidated statement of financial position. More details on the calculation
of the fair value of financial instruments are available in Note 38g. VII) Expected credit losses Regarding the provision for loan losses,
CMN Resolution No. 4,966/21 and BCB Resolution No. 352/23 establish criteria applicable to financial instruments, including leasing operations,
financial guarantees provided, credit commitments and credits to be released. The Organization assesses the credit risk and the expected
losses collectively, grouping the financial instruments, managed on a mass basis, into homogeneous groups of risk according to its credit
policy. The complete methodology for calculating expected losses associated with credit risk is adopted, defined in article 44 of the
above resolutions, being mandatory for Segment 1 institutions (S1). The expected losses are calculated on prospective bases for financial
instruments measured at amortized cost, at FVOCI (with the exception of investments in equity instruments), financial assets measured
at FVTPL in level 1 of the fair value hierarchy that are private securities or operations with characteristic of credit concession, financial
guarantees, credit commitments and credits to be released. Constitution of Provision The provision for expected losses is constituted
in its initial recognition based on the stage of credit risk of the financial instrument, as an expense of the period and in return to
the appropriate account of the asset for financial assets and leasing or liabilities for financial guarantees, credit commitments, receivables
to be released and considerations from operating leasing operations. The provision is constituted on the gross accounting value of the
financial assets, which include the appropriation of interest and charges (accrual) by the effective interest rate up to the moment it
becomes an asset with problems of credit recovery. Bradesco constitutes a provision for expected losses for credit commitments and non-cancellable
credits to be released and monitored on a mass basis on the present value of the estimated use of resources of credit commitments and
the present value of the credits to be released. As for financial guarantees provided, the provision is constituted on the present value
of the estimated future disbursements of the institution's liability, linked BRADESCO | Consolidated Financial Statements 78 Consolidated
Financial Statements | Notes to the Consolidated Financial Statements to financial collateral contracts provided,