Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 422

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 422
---
 can be obtained from B3 (principal
source) and the secondary market. Exchange traded derivatives valued using quoted prices are classified within Level 1 of the valuation
hierarchy. However, few classes of derivative contracts are listed on an exchange; those are classified as Level 2 or Level 3.

The yield curves are used to determine
the fair value by the method of discounted cash flow, for currency swaps and swaps based on other risk factors. The fair value of futures
and forward contracts is also determined based on quoted markets prices on the exchanges for exchanges-traded derivatives or using similar
methodologies to those described for swaps. The fair value of options is determined using external quoted prices or mathematical models,
such as Black-Scholes, using yield curves, implied volatilities and the fair value of the underlying asset. Current market prices are
used to determine the implied volatilities. The fair values of derivative assets and liabilities also include adjustments for market liquidity,
counterparty credit quality and other specific factors, where appropriate.

The majority of these models do not contain
a high level of subjectivity as the methodologies used in the models do not require significant judgment and inputs to the model are readily
observable from active quoted markets. Such instruments are generally classified within Level 2 of the valuation hierarchy.

Derivatives that have significant unobservable
inputs to their valuation models are classified within
Level 3 of the valuation hierarchy.

Reconciliation of securities and derivative
financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

  Schedule of derivative financial instruments measured at fair value                                                                                                                                                                                                        
                                                                           R$ thousands                                                                                                                                                                                      
                                                                           Financial assets at fair value through profit or loss      Financial assets at fair value through other comprehensive income      Assets Derivative      Liabilities Derivatives           Total  
  On December 31, 2022                                                     700,473                                                                                                            1,419,682      109,856                ( 644,689)                    1,585,322  
  Included in profit or loss                                               117,985                                                                                                               26,923      -                      -                               144,908  
  Included in other comprehensive income                                   -                                                                                                                    197,493      -                      -                               197,493  
  Acquisitions                                                             36,456                                                                                                                     -      43,130                 -                                79,586  
  Write-offs                                                               ( 53,583)                                                                                                          ( 80,070)      -                      115,293