Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 314

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 11
Chunk 314
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ITEM
11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is represented
by the possibility of financial losses due to the variation in prices and interest rates of our financial assets, since asset and liability
portfolios may have mismatches of amounts, periods, currencies and indexes. We are exposed to market risk, both in our trading and banking
portfolios. The main market risks of our portfolios are interest rate risk and foreign exchange risk.

We use stress methodologies
such as sensitivity analysis, Economic Value of Equity (EVE), Net Interest Income (NII) and Value at Risk (VaR), among others, for evaluating
our market risk.

  Ø       Interest rate risk  

Interest rate risk arises
as a result of timing differences on the repricing of assets and liabilities, unexpected changes in the slope and shape of yield curves,
base risk and changes in the correlation of interest rates between different financial instruments/indexes. We are exposed to the risk
of interest rate movements when there is a mismatch between fixed rates and market interest rates. For a discussion of our management
of interest rate sensitivity, see “ Item 5. B. Liquidity and Capital Resource - 5. B.70 Interest rate sensitivity”.

  Ø       Exchange risk  
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Exchange risk arises as
a result of our having assets, liabilities and off-balance sheet items that are denominated in, or indexed to, currencies other than reais,
either as a result of trading or in the normal course of banking activities. We control exposure to exchange rate movements by ensuring
that mismatches are managed and monitored, and our policy is to avoid material exchange rate mismatches. For a discussion of our management
of exchange rate sensitivity, see “ Item 5. B. Liquidity and Capital Resource - 5. B.80 Foreign
exchangerate sensitivity”.

  Ø       Market risk of trading activities  

We enter into derivatives
transactions to manage our exposure to interest rate and exchange rate risk. As a result, our exposure to the potential losses described
below is generally reduced by these transactions.

  Ø       Sensitivity analysis  

Below, we present a sensitivity
analysis for our financial exposure in trading and banking portfolios, based on three scenarios applied to market rates and prices. We
considered 25.0% and 50.0% shocks in prices and rates that would adversely affect our positions, and a scenario reflecting an impact of
1 basis point on rates