Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 406

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 406
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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
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 will have the addition of the expected value of the commitments or financial guarantees provided that they will be converted
into credit in case of default of the loan or credit rather than the customer.

Credit Risk Exposure

We present below the maximum credit
risk exposure of the financial instruments:

  Schedule of credit risk exposure                                                                                                                                                        
                                                                                              R$ thousands                                                                                
                                                                                      On December 31, 2024                                On December 31, 2023                            
                                                                                               Gross value      Expected credit loss               Gross value      Expected credit loss  
  Financial assets                                                                                                                                                                        
  Cash and balances with banks (Note 5)                                                        146,614,670      -                                  151,053,972      -                     
  Financial assets at fair value through profit or loss (Note 6)                               371,883,348      -                                  387,598,377      -                     
  Debt instruments at fair value through other comprehensive income (Note 8) (1)               156,292,584      ( 14,306)                          212,849,606      ( 136,884)            
  Loans and advances to financial institutions (Note 10)                                       196,421,127      ( 187,829)                         205,103,649      ( 990)                
  Loans and advances to customers (Note 11)                                                    720,239,586      ( 47,857,481)                      629,686,699      ( 50,184,