Company: BBD
Filing Date: 2025-10-30
Form Type: 6-K
Source: 0001292814-25-003701
Chunk: 159

Company: BANK BRADESCO
Filing Date: 2025-10-30
Form: 6-K
Chunk 159
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 evaluated based
on different indicators for classification in stages according to the customers’ profile, the product type and the current payment
status, as shown below: Retail and Wholesale Portfolios: • Stage 1: Financial assets whose obligations are current or less than 30
days past due and which have a low internal credit risk rating; • Stage 2 (Significant increase in credit risk): Financial assets
that are overdue obligations between 31 and 90 days or whose internal credit risk rating migrated from low risk to medium or high risk;
• Stage 3 (Defaulted or “impaired”): Financial assets whose obligations are overdue for more than 90 days or that present
bankruptcy events, judicial recovery and restructuring of debt; • Re-categorization from stage 3 to stage 2: Financial assets that
settled overdue amounts and whose internal ratings migrated to medium risk; • Re-categorization from stage 2 to stage 1: Financial
assets that settled overdue amounts and whose internal ratings migrated to low risk; and • Re-categorization from stage 3 to stage
1: Financial assets that returned regular payment leading to reclassification as low risk. The expected losses are based on the multiplication
of credit risk parameters: Probability of default (PD), Loss due to default (LGD) and Exposure at default (EAD). The PD parameter refers
to the probability of default perceived by the Company regarding the customer, according to the internal models of evaluation, which,
in retail, use statistical methodologies based on the characteristics of the customer, such as the internal rating and business segment,
and the operation, such as product and guarantee and, in the case of wholesale, they use specialist models based on financial information
and qualitative BRADESCO | Consolidated Financial Statements 139 Conso lidated Financial Statements | Notes to the Consolidated Financial
Statements analyses. The LGD refers to the percentage of loss in relation to exposure in case of default, considering all the efforts
of recovery, according to the internal model of evaluation that uses statistical methodologies based on the characteristics of the operation,
such as product and guarantee. Customers with significant exposure have estimates based on individual analyses, which are based on the
structure of the operation and expert knowledge, aiming to capture the complexity and the specifics of each operation. EAD is the exposure
(gross book value) of the customer in relation to the Company at the time of estimation of the expected loss. In the case of commitments
or financial guarantees provided, the EAD