Banco Comercial Portugues

Investor Presentation • Jan 30, 2025

BANCO BPI RESULTS

30 JANUARY 2025

2024 BANCO BPI RESULTS

DISCLAIMER

• The purpose of this presentation is purely informative and should not be considered as a service or offer of any financial product, service or advice, nor should it be interpreted as, an offer to sell or exchange or acquire, or an invitation for offers to buy securities issued by Banco BPI ("BPI") or any of the companies mentioned herein. The information contained herein is subject to, and must be read in conjunction with, all other publicly available information. Any person at any time acquiring securities must do so only on the basis of such person's own judgment as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information set out in the relevant documentation filed by the issuer, having taken all such professional or other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in this presentation.
• BPI cautions that this presentation might contain forward-looking statements concerning the development of its business and economic performance. While these statements are based on BPI's current projections, judgments and future expectations concerning the development of the Bank's business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from BPI's expectations. Such factors include, but are not limited to the market general situation, macroeconomic factors, regulatory, political or government guidelines and trends, movements in domestic and international securities markets, currency exchange rates and interest rates, changes in the financial position, creditworthiness or solvency of BPI customers, debtors or counterparts.
• Statements as to historical performance or financial accretion are not intended to mean that future performance or future earnings for any period will necessarily match or exceed those of any prior year. Nothing in this presentation should be construed as a profit forecast. In addition, it should be noted that although this presentation has been prepared based on accounting registers kept by BPI and by the rest of the Group companies it may contain certain adjustments and reclassifications in order to harmonize the accounting principles and criteria followed by such companies with those followed by BPI.
• In particular, regarding the data provided by third parties, BPI does not guarantee that these contents are exact, accurate, comprehensive or complete, nor it is obliged to keep them updated, nor to correct them in the case that any deficiency, error or omission were to be detected. Moreover, in reproducing these contents by any means, BPI may introduce any changes it deems suitable, may omit partially or completely any of the elements of this document, and in case of any deviation between such a version and this one, BPI assumes no liability for any discrepancy.
• In relation to Alternative Performance Measures (APMs) as defined in the guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority on 5 October 2015 (ESMA/2015/1415), this report uses certain APMs, which have not been audited, for a better understanding of the company's financial performance. These measures are considered additional disclosures and in no case replace the financial information prepared under the International Financial Reporting Standards (IFRS). Moreover, the way the Group defines and calculates these measures may differ to the way similar measures are calculated by other companies. Accordingly, they may not be comparable. Please refer to the Annexes section for a list of the APMs used along with the relevant reconciliation between certain indicators.
• This document has not been submitted to the Comissão do Mercado of Valores Mobiliários (CMVM) (Autoridade Portuguesa do Mercado of Capitais) for review or for approval. Its content is regulated by the Portuguese law applicable at the date hereto, and it is not addressed to any person or any legal entity located in any other jurisdiction. For this reason it may not necessarily comply with the prevailing norms or legal requisites as required in other jurisdictions.
• Notwithstanding any legal requirements, or any limitations imposed by BPI which may be applicable, permission is hereby expressly refused for any type of use or exploitation of the content of this presentation, and for any use of the signs, trademarks and logotypes contained herein. This prohibition extends to any kind of reproduction, distribution, transmission to third parties, public communication or conversion by any other mean, for commercial purposes, without the previous express consent of BPI and/or other respective proprietary title holders. Any failure to observe this restriction may constitute a legal offence which may be sanctioned by the prevailing laws in such cases.

MORE BUSINESS, MORE RESULTS, MORE STRENGTH.

• Gross income growth (+12%)
• Loans grew +3% and total Customer resources +5%
• Loan portfolio quality maintained, NPE at historic low (1.4%), coverage at 151%
• Net profit of 588 M.€ in 2024 (+12% yoy)
• High capitalisation, with CET1 ratio of 14.3% and total ratio of 17.9%

BPI RESULTS

In 2024

Commercial activity in Portugal	Loans  yoy +1.0 Bn.€ +3%	Deposits  yoy +1.2 Bn.€ +4% Total customer resources +2.1 Bn.€ +5%	 yoy Gross +12% income +4% Net interest income
Risk and capitalisation	NPE ratio 1.4% (EBA criteria) 151% Coverage (by impairments and collaterals)	0.09% Cost of Risk (as % of loans and guarantees)	14.3% CET1 15.7% T1 17.9% Total (Phasing-in)
Profit and profitability	Net profit  yoy 588 M.€ +12%	Cost-to-income in Portugal 37%	Recurrent ROTE in Portugal 18.2%

NET PROFIT OF 588 M.€ IN 2024

Net profit
€ In M	2023	2024	Δ%	▪	Gross income growth
Activity in Portugal				▪	Stable costs
profit Recurrent net	484	556	15%	▪		Reduction of cost of credit risk
impacts 1) Non-recurrent	-41	-45	-
profit in Portugal Net	444	511	+15%	M.€	+102	+3	+17	-49
BFA contribution	42	39	-5%			Recurrent costs	Reduction of impairments	Income tax and	556
contribution BCI	39	38	-3%	484	Gross income			other
profit Net	524	588	+12%
	2023		2024
Recurrent ROTE in Portugal	16.0%		18.2%	2023					2024

GROSS INCOME GREW ACROSS THE BOARD

GROWTH OF CORPORATE AND MORTGAGE LOANS

Gross portfolio, in Bn.€ Dec 23 Dec 24 YoY Loans to individuals 16.2 16.8 3% Mortgage loans 14.6 15.2 5% Other loans to individuals 1.7 1.5 -8% Loans to companies 11.5 12.0 4% Public sector 2.3 2.3 -1% Total loans 30.1 31.1 3% Loan portfolio net of impairments 29.5 30.6 3%

11.4% 11.8% 12.1% 12.1% 21 22 23 Nov 24 Loans to Customers by segment Market share in total loans remains stable Note: market share includes corporate debt securities. Source: BPI, Bank of Portugal.

MORTGAGE LOANS: GROWTH AND MARKET SHARE GAIN

CORPORATE LOANS: PORTFOLIO GROWTH

CUSTOMER RESOURCES INCREASED BY 5%

Customer Resources						Market shares
In Bn €	Dec 23	Dec 24	YoY
deposits Customer	29 3	30 5	4%			Deposits
Off-balance sheet resources	8 7	9 5	10%			Off-balance sheet
Total	37 9	40 0	5%			resources 1 Customer

	Nov 24	YoY 
Deposits	10 4%	-0 3 p.p.
Off-balance sheet	0% 14	+0 1 p.p.
resources 1 Customer	10 9%	-0 3 p.p.

ONE MILLION DIGITAL CLIENTS

COSTS STABLE

CREDIT GREW WITH LOWEST RISK EVER

COMFORTABLE CAPITAL BUFFER

VOLUNTEERING IN ACTION AND YOUNG TALENT GROWING

BPI Volunteering

	2024	Since the start (March 2021)
Volunteers	2 100	+4 500
Direct beneficiaries	17 000	+87 500

Young Talent

• 225 hires in 2024 (average age 28)
• 75% retention in Trainee Academies 2023/24
• 4 new Academies: 2 200 candidates for 71 vacancies
• +50 traineeships (off Academies)

2022–2024 Sustainability	Diversity and inclusion	OBJECTIVE 43% of women in management positions	REACHED IN 2024 45%
Master Plan

BPI INVESTS IN YOUNG TALENT

• 289 Young people (< 30 years) recruited since 2022
• The average age of the 225 new hires in 2024 was 28.

• 333 Traineeships in 3 years
• Successful Academies model, with high talent retention rate (75%)

ACCELERATOR GENERATIONAL RENEWAL

TEAM DIVERSITY INNOVATION DIGITAL TRANSFORMATION

BPI AND "LA CAIXA" FOUNDATION PROVIDE SUPPORT TO THE SOCIETY

"la Caixa" Foundation initiative in collaboration with BPI

~50 M.€ in 2024

+112 th. direct beneficiaries in 2024

100% territorial coverage

4 areas of intervention

Social Programmes Research and Health Culture and science Education and Scholarships

BPI "la Caixa" Foundation Awards and Decentralised Social Initiative

44 M.€ in support to projects

485 th. direct beneficiaries (results since launch)

2022–2024 Sustainability Master Plan

BPI and "la Caixa" Foundation Social Work

200 th. beneficiaries 120 M€ invested OBJECTIVE REACHED IN 2022- 2024

324 th. beneficiaries > 120 M€

SUPPORT TO CUSTOMERS' SUSTAINABLE TRANSITION

INITIATIVES FOR SUSTAINABILITY

• ✓ Dynamic workshops for sharing experiences and knowledge, technically supported by sustainability experts
• ✓ 6 events, 6 cities, 6 themes

Cascais	Faro	S. Miguel	Braga	Beja	Barcelos

SUSTAINABILITY ACCELERATOR, 3rd edition BPI FORUM "THE FUTURE OF WATER", 1st edition

✓ Experts, former government officials, mayors and businesses discussed water management:

Where should we invest? How can we reuse? What price should we charge? Which sectors need investment?

2nd edition: 27 February 2025

NEW SUSTAINABLE BANKING PLAN FOR 2025-2027

BPI AWARDS TO SUPPORT THE ECONOMY AND INNOVATION

BEST BANK PORTUGAL	BEST BANK FOR SMES PORTUGAL	BEST DIGITAL BANK PORTUGAL	TRUSTED BRAND 11 YEARS STRAIGHT
				GRAND AWARD CAMPAIGN "IT'S A GIRL"
BRAND OF EXCELLENCE	MORTGAGE LOANS AND	EXCELLENCE IN SUSTAINABLE BANKING	PORTUGAL'S BEST CORPORATE/INSTITUTIONAL

INITIATIVE

DIGITAL BANK

PRESTIGE PRODUCTS

RECOGNITION

+19 AWARDS

RECOGNITION

ANNEXES

Income Statements and Balance sheet in accordance with IAS / IFRS and Banco BPI indicators

02

Reconciliation between BPI reported figures and BPI Segment contribution to CaixaBank Group

Alternative Performance Measures

Note: From June 2024, Banco BPI no longer presents consolidated accounts as it has no fully consolidated subsidiaries. In accordance with IAS 28 and IAS 27, the associated companies over which Banco BPI has significant influence (Allianz and BCI) are accounted for using the equity method in Banco BPI's accounts as from 30 June 2024 (previously, these holdings were accounted for at acquisition cost in Banco BPI's separate financial statements).

BPI RATINGS VS. PEERS As of 27 January 2025

	(Long Term Debt/ Issuer Credit Rating)	(Long Term Debt/ Issuer rating)	(Issuer Default Rating)	(Long-Term Debt/ Issuer Rating)
	AAA	Aaa Mortgage bonds	AAA	AAA
e	AA+	Aa1	AA+	AA (high)
d a r	AA	Aa2	AA	Mortgage bonds AA
G t	AA	Aa3	AA	AA (low)
n e m	A+	A1 Deposits	A+	A (high)
st	A	A2	Deposits A Senior debt	Bank 1 A
e v n	Bank 1 Bank 3 A	A3	Bank 1 A	Bank 3 A (low)
I	BBB+	Bank1 Bank3 Bank 2 Baa1	BBB+	Bank 2 BBB (high)
	Bank 2 BBB	Bank 5 Baa2	Bank 2 Bank 5 BBB	Bank 5 BBB
	BBB	Baa3	BBB	BBB (low)
t	BB+	Bank 4 Ba1	Bank 4 BB+	Bank 4 BB (high)
n e	BB	Ba2	BB	BB
m st e	BB	Ba3	BB	BB (low)
d e a v r	B+	B1	B+	B (high)
n g I - n o N	B	B2	B	B
	B	B3	B	B (low)
	CCC+	Caa1	CCC+	CCC (high)

S&P: On 15 Nov.24 upgraded BPI rating, from BBB+ to A-, with Stable outlook.

Moody's: On 19 Nov.24 upgraded the rating of BPI and its senior debt to A2 (from Baa1) and the rating of its deposits to A1 (from A2). The Outlook of the ratings is Stable.

Fitch Ratings: On 13 Dec.24 upgraded BPI rating, from BBB+ to A-, with Stable outlook and the ratings of its senior debt and deposits from A- to A.

DBRS: on 4 Jul.24 reaffirmed BPI's mortgage covered bond rating (AA).

INCOME STATEMENT OF THE ACTIVITY IN PORTUGAL

In M €	Dec 23	Dec 24	%
Net interest income	943 0	976 9	% 4
Dividend income	2 0	8 3	-
Equity accounted income	18 7	19 8	6 %
Net fee and commission income	291 4	326 6	12%
financial Gains/(losses) and liabilities and other assets on	21 3	26 6	25%
Other operating income and expenses	-80 0	-21 5	73%
income Gross	1 196 5	1 336 7	12%
Staff expenses	-251 5	-247 4	-2%
Other administrative expenses	-167 7	-178 1	6 %
and Depreciation amortisation	-73 3	-64 4	-12%
Recurring operating expenses	-492 5	-489 9	-1%
Non-recurrent costs	-33 7	-65 2	94%
Operating expenses	-526 2	-555 1	5%
Net operating income	670 3	781 6	17%
Impairment losses and other provisions	-54 0	-37 0	-32%
Gains and losses in other assets	7 3	1 3	-82%
income before income Net tax	623 5	745 9	20%
Income tax	-179 9	-234 8	31%
income Net	443 7	2 511	15%
income Recurrent net	484 3	556 2	15%

BALANCE SHEET OF THE ACTIVITY IN PORTUGAL

LOAN PORTFOLIO AND CUSTOMER RESOURCES

ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤ

portfolio in Gross M € ,	23 Dec	24 Dec	YoY
individuals Loans to	16 241	16 775	3%
loans Mortgage	14 557	232 15	5%
Other loans individuals to	684 1	543 1	-8%
companies Loans to	494 11	995 11	4%
Public sector	2 338	2 304	-1%
Total loans	30 073	31 074	3%
portfolio of Loan net impairments	29 540	30 571	3%

Loan portfolio
Gross portfolio in € M ,	Dec 23	Dec 24	YoY
individuals Loans to	16 241	16 775	3%
loans Mortgage	14 557	15 232	5%
Other loans individuals to	1 684	1 543	-8%
companies Loans to	11 494	11 995	4%
Public sector	2 338	2 304	-1%
Total loans	30 073	31 074	3%
portfolio of Loan net impairments	29 540	30 571	3%

BANCO BPI INCOME STATEMENT

€ In M	Dec 23	Dec 24	%
Net interest income	948 9	979 0	3 %
Dividend income	74 5	53 5	-28%
Equity accounted income	60 6	60 0	-1%
fee and Net commission income	291 4	326 6	12%
financial Gains/(losses) and liabilities and other assets on	-21 3	22 5	-
Other and operating income expenses	-85 8	-25 3	71%
income Gross	1 268 5	1 416 4	12%
Staff expenses	-251 5	-247 4	-2%
Other administrative expenses	-167 7	-178 1	6 %
Depreciation and amortisation	-73 3	-64 4	-12%
Recurring operating expenses	-492 5	-489 9	-1%
Non-recurrent costs	-33 7	-65 2	94%
Operating expenses	-526 2	-555 1	5%
operating income Net	742 3	861 2	16%
Impairment losses and other provisions	-54 2	-36 9	-32%
Gains and losses other in assets	3 7	-7 7	-
income before income Net tax	695 4	816 7	17%
Income tax	-171 4	-228 5	33%
income Net	524 0	588 2	12%

Note: consolidated accounts in 2023 and Banco BPI accounts in 2024 (as from June 2024, Banco BPI no longer presents consolidated accounts).

BANCO BPI BALANCE SHEET

In M.€	Dec 23	Dec 24
ASSETS
Cash and cash balances at central banks and other demand deposits	1 856	3 286
Financial assets held for trading, at fair value through profit or loss and at fair	1 365	1 480
value through other comprehensive income
Financial assets at amortised cost	34 541	35 346
Of which: Loans to Customers	29 540	30 571
Investments in joint ventures and associates	221	247
Tangible assets	208	192
Intangible assets	106	112
Tax assets	170	270
Non-current assets and disposal groups classified as held for sale	15	14
Other assets	147	124
Total assets	38 628	41 072
LIABILITIES
Financial liabilities held for trading	58	57
Financial liabilities at amortised cost	33 705	36 146
Deposits - Central Banks and Credit Institutions	1 062	718
Deposits - Customers	29 252	30 501
Debt securities issued	3 106	4 694
Of which: subordinated liabilities	435	434
Other financial liabilities	286	232
Provisions	40	32
Tax liabilities	211	258
Other liabilities	639	567
Total Liabilities	34 653	37 061
Shareholders' equity attributable to the shareholders of BPI	3 975	4 011
Non controlling interests	0	0
Total Shareholders' equity	3 975	4 011
Total liabilities and Shareholders' equity	38 628	41 072

COVERAGE OF PENSION LIABILITIES

Employee pension liabilities

€ M	Dec 23	Dec 24
Total liability service past	1 724	1 763
Pension funds net assets	780 1	758 1
Level of of pension liabilities coverage	103%	100%
fund Pension return	8 1%	3 4%
Discount rate	3 2%	3 4%

BANCO BPI INDICATORS

Profitability, Efficiency and Liquidity Indicators of of (Bank Portugal Instruction no. 16/2004 with the amendments Instruction 6/2018)	Dec 23	Dec 24
/ Gross income ATA	3.3%	3.6%
income before income and income attributable non-controlling interests / Net tax to ATA	1.8%	2.1%
before and attributable non-controlling / average shareholders' Net income income tax income to interests equity (including non-controlling interests)	18.1%	21.2%
income 1 ) Staff expenses / Gross	19.8%	17.5%
income 1 ) expenses / Operating Gross	38.8%	34.6%
(net) deposits Loans ratio to	101%	101%
Funding and liquidity indicators	23 Dec	24 Dec
Deposits 2 ) / Loans	99%	97%
stable funding (NSFR) Net ratio	136%	141%
Liquidity coverage ratio (LCR)	177%	220%
average 3 ) Liquidity coverage ratio (LCR) - 12 month	162%	214%
NPE ratio and forborne (according the EBA criteria) to	Dec 23	Dec 24
Non-performing (M .€) exposures - NPE	560	540
NPE ratio	1.5%	1.4%
coverage by NPE impairments	98%	95%
coverage by impairments and collaterals NPE	154%	151%
NPE 4) Ratio of forborne included in not	1.3%	1.0%
"Crédito duvidoso" (non-performing loans) (according Bank of Spain criteria) to	23 Dec	24 Dec
.€) 5) "Crédito duvidoso" (M	553	573
"Crédito duvidoso" ratio	1.7%	1.7%
"Crédito duvidoso" coverage by impairments	99%	90%
"Crédito duvidoso" coverage by and collaterals impairments	155%	145%

1) Excluding early-retirement costs.

32

2) According to definition in Alternative Performance Measures.

3) 12 month average, in accordance with the EBA guidelines. Average value (12 months) of the calculation components: Liquidity reserves (7 210 M.€); Total net outflows (3 373 M.€).

4) On December 2024, the forborne was 680 M.€ (forborne ratio of 1.5%), of which 463 M.€ was performing loans (1.0% of the gross credit exposure) and 217 M.€ was included in NPE (0.5% of the gross credit exposure). 3) Includes guarantees provided (recorded off-balance sheet)

RECONCILIATION BETWEEN BPI REPORTED FIGURES AND BPI SEGMENT CONTRIBUTION TO CAIXABANK GROUP

Profit & loss account

	As	BPI	Business segment
Dec 24 (M .€)	reported by BPI	contribution to CABK Group	BPI	Corporate Center
Net interest income	979	974	961	14
Dividends	53	54	9	45
Equity accounted income	60	60	20	40
fees Net and commissions	327	327	327
Trading income	22	27	31	( 4)
Other operating income & expenses	( 25)	( 22)	( 18)	( 4)
Gross income	1 416	1 420	1 329	91
Operating expenses	( 490)	( 498)	( 498)
Extraordinary operating expenses	( 65)
Pre-impairment income	861	922	830	91
Impairment losses on financial assets	( 29)	( 29)	( 29)	0
Other and impairments provisions	( 8)	( 67)	( 67)	( 0)
Gains/losses on disposals others &	( 8)	( 8)	1	( 9)
income Pre-tax	817	817	735	82
Income tax	( 228)	( 229)	( 231)	3
income Net	588	589	504	85

Loan portfolio & customer resources

December 2024 (M.€)	reported As by BPI	Adjustments	contribution BPI to (BPI segment) CABK Group
Loans and advances to customers, net	30 571	( 90)	30 480
Total funds customer	39 984	(4 628)	35 356

Profit & loss account

The difference between the results disclosed by BPI and its contribution to the group corresponds to consolidation adjustments derived from intragroup eliminations, reclassifications to standardize presentation criteria in the income statement and certain remaining adjustments from the business combination.

Additionally, BPI contribution to CaixaBank Group results is broken down into BPI segment and Corporate Center segment, the latter including the contributions from BFA and BCI.

Loan portfolio & customer funds

The difference between BPI reported figures and those reported by CaixaBank for the BPI segment can largely be explained by:

• In loans and advances to customers, net, consolidation adjustments (elimination of intra-group balances);
• In total customer funds, by the liabilities under insurance contracts and their fair value adjustments at 31 December 2024, as generated by the business combination, which have been reported in the banking and insurance business segment of CaixaBank following the sale of BPI Vida to VidaCaixa de Seguros y Reaseguros.

Reconciliation of the profit & loss account structure

• The European Securities and Markets Authority (ESMA) published on 5th October 2015 a set of guidelines relating to the disclosure of Alternative Performance Measures by entities (ESMA/2015/1415). These guidelines are mandatory to issuers with effect from 3rd July 2016.
• In addition to the financial information prepared in accordance with the International Financial Reporting Standards (IFRS), BPI uses a set of indicators for the analysis of performance and financial position, which are classified as Alternative Performance Measures, in accordance with the abovementioned ESMA guidelines. The information relating to those indicators has already been object of disclosure, as required by ESMA guidelines.
• In the current presentation, the information previously disclosed is included by way of cross-reference and a summarized list of the Alternative Performance Measures is presented next.

The following table shows the reconciliation of the structure used in this document (Results' Presentation) with the structure adopted in the financial statements and respective notes of the Report and Accounts.

	Units, conventional sings and abbreviations
Year-to-date change	€, Euros, EUR		euros
Year-on-year change	th.€, th.euros		thousand euros
quarter-on-quarter change	M.€, M.euros		million euros
European Central Bank	Bn.€, Bi.€		billion euros
Bank of Portugal			change
Securities Market Commission	n.a.		not available
Alternative Performance Measures	0, –		null or irrelevant
Interbank Money Market	vs.		versus
Tier 1	b.p.		basis points
Common Equity Tier 1	p.p.		percentage points
Risk weighted assets	E		Estimate
Targeted longer-term refinancing operations	F		Forecast
Liquidity coverage ratio
Net stable funding ratio
	Adopted acronyms and designations

Reconciliation of Banco BPI profit & loss account structure

Structure used in the Results' Presentation	Dec 24	Dec 24	Structure presented in the financial statements and respective notes
Net interest income	979.0	979.0	Net interest income
Dividend income	53.5	53.5	Dividend income
Equity accounted income	60.0	60.0	Share of the profit or (-) loss of investments in subsidiaries, joint ventures and associates accounted for using the equity method
Net fee and commission income	326.6	355.6	Fee and commission income
		-28.9	Fee and commission expenses
Gains/(losses) on financial assets and liabilities and	22.5	0.2	Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net
other		5.1	Gains or (-) losses on financial assets and liabilities held for trading, net
		-3.4	Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net
		11.7	Gains or (-) losses from hedge accounting, net
		8.9	Exchange differences [gain or (-) loss], net
Other operating income and expenses	-25.3	25.1	Other operating income
		-50.4	Other operating expenses
Gross income	1 416.4	1 416.4	GROSS INCOME
Staff expenses	-312.6	-312.6	Staff expenses
Other administrative expenses	-178.1	-178.1	Other administrative expenses
Depreciation and amortisation	-64.4	-64.4	Depreciation
Operating expenses	-555.1	-555.1	Administrative expenses and depreciation
Net operating income	861.2	861.2
Impairment losses and other provisions	-36.9	-6.2	Provisions or (-) reversal of provisions
		-30.7	Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss
Gains and losses in other assets	-7.7	-9.0	Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates
		-0.5	Impairment or (-) reversal of impairment on non-financial assets
		0.0	Gains or (-) losses on derecognition of non financial assets, net
		1.7	Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations
Net income before income tax	816.7	816.7	PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS
Income tax	-228.5	-228.5	Tax expense or income related to profit or loss from continuing operations
Net income from continuing operations	588.2	588.2	PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS
Net income from discontinued operations			Profit or (-) loss after tax from discontinued operations
Net income	588.2	588.2	PROFIT OR (-) LOSS FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF THE PARENT

EARNINGS, EFFICIENCY AND PROFITABILITY INDICATORS	The following earnings, efficiency and profitability indicators are defined by reference to the above structure of the profit and loss account used in this document.
Gross income	Net interest income + Dividend income + Net fee and commission income + Equity accounted income + Gains/(losses) on financial assets and liabilities and other + Other operating income and expenses
Commercial banking gross income	Net interest income + Dividend income + Net fee and commission income + Equity accounted income excluding the contribution of stakes in African banks
Operating expenses	Staff expenses + Other administrative expenses + Depreciation and amortisation
Net operating income	Gross income – Operating expenses
Net income before income tax	Net operating income – Impairment losses and other provisions + Gains and losses in other assets
Cost-to-income ratio (efficiency ratio) 1)	2 Operating expenses, excluding costs with early-retirements and voluntary terminations and other non recurrent / Gross income
Cost-to-core income ratio (core efficiency ratio)1)	[Operating expenses, excluding costs with early-retirements and voluntary terminations and other non recurrent – Income from services rendered to CaixaBank Group (recorded under Other operating income and expenses)] / Commercial banking gross income
Return on Equity (ROE)1)	Net income for the period, less the interest cost of AT1 capital instruments recorded directly in shareholders' equity / Average value in the period of shareholders' equity attributable to BPI shareholders, excluding AT1 capital instruments
Return on Tangible Equity (ROTE)	1) Net income for the period, less the interest cost of AT1 capital instruments recorded directly in shareholders' equity / Average value in the period of shareholders' equity attributable to BPI shareholders (excl. AT1 capital instruments) after deduction of intangible net assets and goodwill of equity holdings
Assets (ROA)1) Return on	(Net income attributable to BPI shareholders + Income attributable to non-controlling interests - preference shares dividends paid) / Average value in the period of net total assets
Unitary intermediation margin	Loan portfolio average interest rate, excluding loans to employees – Deposits average interest rate
BALANCE SHEET AND FUNDING INDICATORS
On-balance sheet Customer resources3)	Deposits + Capitalisation insurance of fully consolidated subsidiaries + Participating units in consolidated mutual funds ▪ Deposits = Demand deposits and other + Term and savings deposits + Interest payable + Retail bonds (Fixed rate bonds placed with Customers) ▪ Capitalisation insurance of fully consolidated subsidiaries (BPI Vida e Pensões sold on Dec.17)
Off-balance sheet Customer resources4)	Mutual funds + Capitalisation insurance + Pension plans + Subscriptions in public offerings ▪ Mutual funds = Unit trust funds + Real estate investment funds + Retirement-savings and equity-savings plans (PPR and PPA) + Hedge funds + Assets from the funds under BPI Suisse management (BPI Suisse sold on Apr.23) + Third-party unit trust funds placed with Customers. ▪ Capitalisation insurance = Third-party capitalisation insurance placed with Customers ▪ Pension plans = Pension plans under BPI management (includes BPI pension plans) ▪ Subscriptions in public offerings = Customers subscriptions in third parties' public offerings

¹⁾ Ratio referring to the last 12 months, except when indicated otherwise. The ratio can be computed for the cumulative period since the beginning of the year, in annualised terms. 2) Excluding non-recurrent.

³⁾ The amount of on-balance sheet Customer resources is not deducted from the applications of off-balance sheets products (mutual funds and pension plans) in on-balance sheet products. 4) Amounts deducted from participating units in the Group banks' portfolios and from off-balance sheet products investments (mutual funds and pension plans) in other off-balance sheet products.

BALANCE SHEET AND FUNDING INDICATORS (continuation)
Total Customer resources	On-balance sheet Customer resources + Off-balance sheet Customer resources
Gross loans to customers	Gross loans and advances to Customers (financial assets at amortised cost), excluding other assets (guarantee accounts and others) and reverse repos + Gross debt securities issued by Customers (financial assets at amortised cost) Note: gross loans = performing loans + loans in arrears + receivable interests
Net loans to Customers	Gross loans to Customers – Impairments for loans to Customers
Loan-to-deposit ratio (CaixaBank criteria)	(Net loans to Customers - Funding obtained from the EIB, which is used to provide credit) / Deposits and retail bonds
ASSET QUALITY INDICATORS
Impairments and provisions for loans and guarantees (income statement)	Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss relative to loans and advances to Customers and to debt securities issued by Customers (financial assets at amortised cost), before deduction of recoveries of loans previously written off from assets, interest and others + Provisions or reversal of provisions for commitments and guarantees
Cost of credit risk	Impairments and provisions for loans and guarantees - Recoveries of loans previously written off from assets, interest and other
	Cost of credit risk as % of loan portfolio1) (Impairments and provisions for loans and guarantees - Recoveries of loans previously written off from assets, interest and other) / Average value in the period of the gross loans and guarantees portfolio.
Performing loans portfolio	Gross Customer loans - (Overdue loans and interest + Receivable interests and other)
NPE and NPL ratios	Ratio of non-performing exposures (NPE) and ratio of non-performing loans (NPL) in accordance with the EBA criteria (prudential perimeter)
Coverage of NPE or NPL	[Impairments for loans and advances to Customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments] / [Non-performing exposures (NPE) or Non-performing loans (NPL)]
Coverage of NPE or NPL by impairments and associated collaterals	[Impairments for loans and advances to Customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments + Collaterals associated to NPE or NPL] / [Non-performing exposures (NPE) or Non-performing loans (NPL)]
Non-performing loans ratio ("credito dudoso", Bank of Spain criteria)	Non performing loans ("credito dudoso", Bank of Spain criteria) / (Gross Customer loans + guarantees)
Non-performing loans coverage ratio	[Impairments for loans and advances to Customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments] / Non performing loans ("credito dudoso", Bank of Spain criteria)
Coverage of non-performing loans by impairments and associated collaterals	[Impairments for loans and advances to Customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments + Collateral associated to credit] / Non performing loans ("credito dudoso", Bank of Spain criteria)
Impairments cover of foreclosed properties	Impairments for real estate received in settlement of defaulting loans / Gross value of real estate received in settlement of defaulting loans

BANCO BPI, S.A. Registered office: Avenida da Boavista 1117, Porto, Portugal Share capital: € 1 293 063 324.98 Registered at Commercial Registry of Porto under registration number PTIRNMJ 501 214 534 and tax identification number 501 214 534