Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 415

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 415
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 Letters No. 3,646/13
and No. 3,674/13, such as the use of VaR and Stressed VaR net of tax effects, the average in the last 60 days and its multiplier.

VaR Internal Model - Backtesting

The risk methodology applied is continuously
assessed using backtesting techniques, which compare the one-day period VaR with the hypothetical profit or loss, obtained from the same
positions used in the VaR calculation, and with the effective profit or loss, also considering the intraday operations for which VaR was
estimated.

The main purpose of backtesting is to
monitor, validate and assess the adherence of the VaR model, and the number of exceptions that occurred must be compatible with the number
of exceptions accepted by the statistical tests conducted and the confidence level established. Another objective is to improve the models
used by the Company, through analyses carried out with different observation periods and confidence levels, both for Total VaR and for
each risk factor.

The daily results corresponding to the
last 250 business days, exceeded the respective VaR with the 99% confidence level twice in the hypothetical view and three times in the
effective view, in December/24. In September/2024, the daily results corresponding to the last 250 business days exceeded the respective
VaR with the 99% confidence level twice in the hypothetical view and three times in the effective view.

According to the document published by
the Basel Committee on Banking Supervision, breakouts would be classified as “ Bad luck or the markets moved in a way not predicted
by the model”, that is, the volatility was significantly higher than the expected and/or correlations were different from those
assumed by the model.

Stress Analysis - Trading Portfolio

The Company also assesses on a daily basis
the possible impacts on profit or loss in stress scenarios considering a holding period of 20 business days, ie, how much prices or interest
rates can change in 20 business days based on historical data and prospective scenarios. This metric is monitored with limits established
in the governance process. The scenarios are defined for each risk factor and they are represented as a shock or discount factors which
are applied to the trading book position, thus, the value calculated represents a possible loss of the trading book in a stress scenario:

  Schedule of possible loss of the trading book in a stress scenario                                                      
                                                                          R$ thousands                                    
                                                                          On December 31, 2024      On December 31