Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 410

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 410
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 profit or loss, including derivatives, or used to hedge other instruments in the Trading Portfolio,
which have no trading restrictions. Held-for-trading operations are those intended for resale, to obtain benefits from actual or expected
price variations, or for arbitrage.

The risks of this portfolio are monitored
through:

  Value at Risk (VaR);  

  Stress Analysis (measurement of negative impact of extreme events,  

  Income; and  

  Financial Exposure/Concentration.  

Banking Portfolio: it comprises
operations not classified in the Trading Portfolio, arising from Group’s other businesses and their respective hedges. Portfolio
risks in these cases are monitored by:

  Variation of economic value due to the variation in the interest  

  Variation of the net revenue of interest due to the variation  

Market-Risk Measurement Models

Market risk is measured and controlled
using Stress, Value at Risk (VaR), Economic Value of Equity (EVE), Net Interest Income (NII) and Sensitivity Analysis methodologies, as
well as limits for the Management of Results and Financial Exposure. The use of different methodologies for measuring and evaluating risks
is important, as they are always complementary and their combined use allows the capture of different scenarios and situations.

Trading and Regulatory Portfolio

Trading Portfolio risks are mainly controlled
by the Stress and VaR methodologies. The Stress methodology quantifies the negative impact of extreme economic shocks and events
that are financially unfavorable to the Company’s positions. The analysis uses stress scenarios prepared by the Market Risk area
and the Company’s economists based on historical and prospective data for the risk factors in which the Company portfolio.

The methodology adopted to calculate VaR
is the Delta-Normal, with a confidence level of 99% and considering the number of days necessary to unwind the existing exposures. The
methodology is applied to the Trading and Regulatory Portfolio (Trading Portfolio positions plus Banking Portfolio foreign currency and
commodities exposures). It should be noted that for the measurement of all the risk factors of the portfolio of options are applied the
historical simulation models and Delta-Gamma-Vega, prevailing the most conservative between the two. A minimum 252-business-day period
is adopted to calculate volatilities, correlations and historical returns.

For regulatory purposes, the capital requirements
relating to shares held in the Banking Portfolio are determined on a credit risk basis, as per Central Bank of Brazil resolution, i. e.,
are not included in the market risk calculation.

Risk of Interest Rate in the Banking
Portfolio

The measurement and