Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 413

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 413
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 the use of derivatives by the Treasury area, the Company created specific procedures that were
approved by the competent Committees.

The hedge transactions executed by Bradesco’s
Treasury area must necessarily cancel or mitigate risks related to unmatched quantities, terms, currencies or indexes of the positions
in the Treasury books, and must use assets and derivatives authorized to be traded in each of their books to:

  control and classify the transactions, respecting the exposure  

  alter, modify or revert positions due to changes in the market  
  and to operational strategies; and                              
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  reduce or mitigate exposures to transactions in inactive markets,  

For derivatives classified in the “hedge
accounting” category, there is a monitoring of: (i) strategy effectiveness, through prospective and retrospective effectiveness
tests, and (ii) mark-to-market of hedge instruments.

Cash flow Hedge

Bradesco maintains cash flow hedges. See
more details in Note 7.

Standardized and “ Continuous
Use” Derivatives

Company’s Treasury area may use
standardized (traded on an exchange) and “continuous use” (traded over-the-counter) derivatives for the purpose of obtaining
income or as hedges. The derivatives classified as “continuous use” are those habitually traded over-the-counter, such as
vanilla swaps (interest rates, currencies, Credit Default Swap, among others), forward operations (currencies, for example) and vanilla
options (currency, Bovespa Index), among others. Non-standardized derivatives that are not classified as “continuous use”
or structured operations cannot be traded without the authorization of the applicable Committee.

Evolution of Exposures

In this section are presented the evolution
of financial exposure, the VaR calculated using the internal model and its backtesting and the Stress Analysis.

Financial Exposure - Trading
Portfolio (Fair Value)

  Schedule of financial exposure trading portfolio                                                                                                             
  Risk factors                                                                       R$ thousands                                                              
                                                                             On December 31, 2024                       On December 31, 2023                   
                                                                                           Assets      Liabilities                    Assets      Liabilities  
  Fixed rates                                                                         124,477,896       10,549,194                74,840,828       56,337,018  
  IGP-M (General Index of market pricing) / IPCA (Consumer price index)                 2,438,885        2,010,863                14,938,784