Company: BBD
Filing Date: 2025-10-30
Form Type: 6-K
Source: 0001292814-25-003701
Chunk: 88

Company: BANK BRADESCO
Filing Date: 2025-10-30
Form: 6-K
Chunk 88
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 considering the probability
of future disbursements in the event that the guaranteed counterpart does not honor the obligation in accordance with the current contractual
provisions. The provision for loss is reviewed monthly, whenever there is a change in the estimate of the expected loss or in the stage
of the instrument. Allocation in Stages Financial instruments are allocated in one of three stages, from their initial recognition and
will be reallocated between them as their credit risk increases or decreases, considering the emergence of relevant new facts. First stage:
Instruments that are not characterized as assets with a credit recovery problem and whose credit risk has not increased significantly.
A significant increase in credit risk is considered when there is a delay of more than 30 days in the payment of the principal or charges.
In specific cases, a delay of payment up to 60 days can be considered, according to consistent and verifiable evidence. For the instruments
allocated in the first stage, the provision corresponds to the expected loss determined by the institution, considering the probability
that the instrument is characterized as a financial asset with a problem of credit recovery in the next 12 months or during the expected
period of the instrument, when it is less than 12 months. Second stage: Instruments whose credit risk has increased significantly, or
which are no longer characterized as assets with a credit recovery problem. For the instruments allocated in the second stage, the provision
corresponds to the expected loss determined by the institution, considering the probability that the instrument is characterized as an
asset with a problem of credit recovery during the whole expected period of the financial instrument. Third stage: Instruments with a
credit recovery problem. In the third stage, the provision corresponds to the expected loss determined by the institution, considering
that the instrument is characterized as an asset with a credit recovery problem. They are classified at this stage: the defaulted financial
assets (over 90 days), those that have an indication that their obligation will not be fully honored under the agreed conditions, without
the need to resort to guarantees or collaterals and restructured financial assets. All instruments of the same counterpart are relocated
to the third stage, unless they present a significantly lower credit risk. These instruments have their recognition of suspended revenues
(stop-accrual), and are entered into the accounts only upon receipt, by the cash regime. This approach also applies to possible gains
in the restructurings. In addition, for defaulted assets (over 90 days) that are part of the third stage, provision is