Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 226

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 5
Chunk 226
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 table breaks down the variation in our financial margin by segment, showing the impact of changes in the average volume of interest-earning assets; changes in average interest rates and the effects of the appreciation/(depreciation) of the real against the U.S. dollar, in each case comparing the years ended December 31, 2024 and 2023:
 
                                                                                                                         R$ in thousands                       
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Banking                                                                                           Insurance, Pension Plans and Capitalization Bonds
2024/2023                                                                                                                                          
Increase/(decrease)                                                                                                                                
Due to changes in average volume of interest-earning assets and interest-bearing liabilities(1)                                         (2,011,500)     267,199
Due to changes in average interest rates                                                                                                  9,468,876   (504,551)
Due to Brazilian real appreciation/depreciation                                                                                             475,633       (142)
Non-interest gains / losses                                                                                                             (3,624,710)     465,321
Net change                                                                                                                                4,308,299     227,827
 (1)Of this amount, R$ 14,990,341 refers to interest earning assets and R$ 17,001,841 to interest-bearing liabilities in the banking segment and R$ 3,999,350 interest earning assets and -R$ 3,732,150 to interest-bearing liabilities in the insurance, pension plans and capitalization bonds segment.
 
Ø   Banking
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 The 6.5% increase in our financial margin reflects the variation in interest rates in Brazil, which decreased from an average of 13.25% in the year ended December 31, 2023 to 11.96% in the year ended December 31, 2024, reducing the average rates on our interest-bearing liabilities and reducing our expenses by R$19,606 million. This increase was partially offset by the increase in the average volume of our interest-bearing liabilities, primarily securities sold under agreements to repurchase and borrowing and on-lending, which together impacted our expenses by R$10,300 million.
 The variation in non-interest gains/losses is mainly related to our results obtained from derivative financial instruments, as well as the result from other non-interest earning assets, such as investment fund quotas.
 

Ø   Insurance, pension plans and capitalization bonds
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 The increase of 3.2% in our financial margin is related to the behavior of the economic and financial indeces that impacted the performance of financial investments