Banco Comercial Portugues

Investor Presentation • Jul 31, 2024

1H24 BANCO BPI RESULTS

31 JULY 2024

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 GROWTH, MORE QUALITY, LESS RISK

▪ Business growth: loans +2% yoy and total Customer resources +5% yoy

• Financial strength: strong quality of the loan portfolio, with NPE of 1.4% and 152% coverage, and high capitalisation, with CET1 ratio of 13.8% and total ratio of 17.5%
• Gross income growth (+18% yoy) and low cost of credit risk (0.06%) drive results

▪ Net profit of 327 M.€ (+28% yoy)

▪ Euromoney Awards for Excellence 2024:

• Best Bank
• Best Digital Bank
• Best Bank for SMEs

1st HALF 2024 RESULTS

Commercial activity in Portugal	Loans YoY  +0.5 Bn.€ +2%	Deposits  YoY +1.8 Bn.€ +6% Total customer resources +1.9 Bn.€ +5%	 YoY Gross +18% income +13% Net interest income
Risk and capitalisation	1.4% NPE ratio (EBA criteria) 152% Coverage (by impairments and collaterals)	0.06% Cost of Risk (as % of loans and guarantees; last 12 months)	13.8% CET1 15.2% T1 17.5% Total (Phasing-in)
Profit and profitability	Net profit YoY  327 M.€ +28%	Cost-to-income in Portugal 37% (last 12 months)	Recurrent ROTE in Portugal 19.0% (last 12 months)

NET PROFIT OF 327 M.€ IN 1H24 (+28%)

NET INTEREST INCOME AND COMMISSIONS STABLE

LOAN GROWTH IN HOUSING AND COMPANIES

MORTGAGE LOANS PRODUCTION KEEPS PACE

DEPOSITS INCREASE 6% YOY

Customer Resources	Market shares
In Bn €	Jun 23	Jun 24	YoY	YtD
Customer deposits	28 6	30 4	6%	4%	Deposits 1
Off-balance sheet resources	8 8	8 9	1%	3%	Off-balance sheet
Total	37 5	39 3	5%	4%	resources 2 Customer

	May 24	YoY 
Deposits 1	10 6%	+0 0 p.p.
Off-balance sheet	13 8%	-0 5 p.p.
resources 2 Customer	11 2%	-0 1 p.p.

DIGITAL BANKING GAINS MORE RELEVANCE

COST STABLE

LOW RISK AND HIGH COVERAGE

ADEQUATELY COVERED PENSIONS

Employee pension liabilities

M €	23 Dec	24 Jun
Total service liability past	1 724	1 618
funds Pension net assets	1 780	1 730
of of Level pension liabilities coverage	103%	107%
fund Pension (YTD , non-annualised) return	8 1%	-0 5%
Discount rate	3 2%	3 7%

HIGH CAPITALISATION

14

1) Considering the Combined Buffer Requirement (CBR) of 3.01% in December 2023. From October 2024, a buffer requirement for systemic risk in the residential real estate market in Portugal will be added, as communicated to the market on 20 November 2023, which is estimated as approximately 0.8%.

BALANCED FUNDING AND COMFORTABLE LIQUIDITY

1) 12-month average, in accordance with the EBA guidelines. Average value (previous 12 months) of the calculation components: Liquidity reserves (6 652 M.€); Total net outflows (3 511 M.€).

2) High Quality Liquid Assets (HQLA) of 7.7 Bn.€ and other assets eligible as collateral with ECB of 5.0 Bn.€

A BANK COMMITTED TO SUSTAINABILITY

	2022-2024 Sustainability Master Plan
	To support the sustainable transition of companies and society	Global	Sustainable business	OBJECTIVES 4 Bn.€	
	To lead in social impact and promote social inclusion	Social	Investment by BPI "la Caixa" Foundation Beneficiaries	120 M.€ 200 th.	
	To lead in Governance best practices	Governance	Women in management positions	43%	

"la Caixa" Foundation initiative in collaboration with BPI

1st Social Fair at BPI All in One

▪ Sale of handicrafts made by beneficiaries of social institutions

Portugal, Social Reckoning 2023

• Analysis of socio-economic situation of families in Portugal
• Study carried out by Nova SBE as part of the Social Equity Initiative

BPI "la Caixa" Foundation Awards

5 M.€ budget allocation in 2024

32 M.€ and 213 thousand beneficiaries since 2010

Decentralised Social Initiative

1.8 M.€ budget allocation in 2024

121 projects supported and 21 thousand beneficiaries in the 1st half of 2024

5.6 M.€ and 200 thousand beneficiaries since 2019

BPI Volunteering Programme

▪ In 1st half 2024:

+15 th. direct beneficiaries 1 700 volunteers

▪ Since the start of the programme (March 2021):

BPI Forum: "The future of Water"

➢ Experts, former government officials, mayors and businesses discussed water management.

➢ BPI-Expresso Project: supporting companies in the transition to sustainability

Mobilidade	Cidades
sustentovel	inteligentes
Turismo	Moda
regenerativo	sustentóvel
Economia	Desafio da aqua
QZU	na agricultura

• ➢ Energy Efficiency Programme for SMEs
• ➢ Webinar on Move+ with ADENE Fleet energy performance
• ➢ Talk at the BTL with ADENE and Biosphere Sustainability in the Tourism Sector

Commercial teams capacity-building

Sustainability roadshow: working sessions with the entire commercial network

747 M.€ in sustainable financing in 1st half 2024

BPI AWARDS TO SUPPORT THE ECONOMY AND INNOVATION

RECOGNITION

RECOGNITION

ANNEXES

01 BPI Ratings versus peers

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

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 26 July 2024

	(Long Term Debt/ Issuer Credit Rating)	(Long Term Debt/ Issuer rating)	(Issuer Default Rating)	(Long-Term Debt/ Issuer Rating)
e	AAA	Aaa Mortgage bonds	AAA	AAA
	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	A+	A (high)
st	A	A2 Deposits	A	Bank 1 A
e v n	Bank 1 A	A3	Deposits Bank 1 A Senior debt	A (low)
I	BBB+	Bank1 Bank3 Baa1	BBB+	Bank 3 BBB (high)
	BBB	Bank 2 Baa2	Bank 3 BBB	Bank 2 BBB
	Bank 2 BBB	Baa3	Bank 2 Bank 5 BBB	BBB (low)
t	BB+	Bank 5 Ba1	BB+	Bank 5 BB (high)
n e	BB	Bank 4 Ba2	Bank 4 BB	Bank 4 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 12 mar.24 S&P reaffirmed BPI's rating (BBB+) and upgraded the individual assessment (stand-alone credit profile-SACP) to 'bbb'. On 10 may S&P improved the outlook to Positive. Moody's: On 22 Nov.23 Moody's upgraded the rating of BPI's deposits to A2 and of its mortgage covered bonds to Aaa, and reaffirmed the rating of BPI and its senior debt (Baa1).

Ratings outlook is Stable.

Fitch Ratings: On 12 Jun.24 it reaffirmed BPI's rating (BBB+), with a positive Outlook, and the ratings of its senior debt and deposits (A-).

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

INCOME STATEMENT OF THE ACTIVITY IN PORTUGAL

In M €	Jun 23	Jun 24	%
Net interest income	434 9	490 6	13%
Dividend income	2 0	8 3	-
Equity accounted income	10 0	10 3	3 %
fee Net and commission income	147 0	167 9	14%
Gains/(losses) financial and liabilities and other assets on	14 7	15 4	4 %
Other and operating income expenses	-42 2	-23 9	43%
income Gross	566 3	668 6	18%
Staff expenses	-122 8	-124 8	2 %
Other administrative expenses	-92 7	-94 1	2 %
and Depreciation amortisation	-34 5	-31 4	-9%
Recurring operating expenses	-250 0	-250 4	0%
Non-recurrent costs	-0 5	-22 9	-
Operating expenses	-250 5	-273 2	9%
Net operating income	315 8	395 4	25%
losses and other Impairment provisions	-38 5	-4 4	-88%
and losses other Gains in assets	10 9	2 0	-81%
income before income Net tax	288 2	393 0	36%
Income tax	-89 5	-125 3	40%
Net income	198 7	267 8	35%
income Recurrent net	189 8	283 5	49%

BALANCE SHEET OF THE ACTIVITY IN PORTUGAL

1) Includes medium and long-term sovereign debt of 3.8 Bn.€ (Portugal 32%; Spain 26%, Italy 17%, European Union 17% and USA 8%), with an average residual maturity of 2.9 years.

LOAN PORTFOLIO AND CUSTOMER RESOURCES

Loan portfolio
portfolio Gross in M € ,	23 Jun	24 Jun	YoY	YtD
individuals Loans to	16 221	16 295	0%	0%
loans Mortgage	14 444	688 14	2%	1%
Other loans individuals to	1 777	607 1	-10%	-5%
companies Loans to	229 11	750 11	5%	2%
Public sector	2 347	2 300	-2%	-2%
Total loans	29 797	30 345	2%	1%
portfolio of Loan net impairments	29 237	29 843	2%	1%

In M €	Jun 23	Jun 24	YoY	YtD
Customer deposits	28 645	30 408	6%	4%
Off-balance sheet resources	8 805	8 936	1%	3%
Total	37 450	39 343	5%	4%

BANCO BPI INCOME STATEMENT

€ In M	23 Jun	24 Jun	%
interest income Net	438 6	491 7	12%
Dividend income	74 5	53 5	-28%
Equity accounted income	27 8	28 7	3 %
fee and Net commission income	0 147	167 9	14%
Gains/(losses) financial and liabilities and other assets on	-26 0	15 1	158%
Other operating income and expenses	-48 0	-27 7	42%
income Gross	613 9	729 2	19%
Staff expenses	-122 8	-124 8	2 %
Other administrative expenses	-92 7	-94 1	2 %
and Depreciation amortisation	-34 5	-31 4	-9%
Recurring operating expenses	-250 0	-250 4	0%
Non-recurrent costs	-0 5	-22 9
Operating expenses	-250 5	-273 2	9%
operating income Net	363 4	456 0	25%
losses and other Impairment provisions	-39 0	-4 5	-88%
Gains and losses in other assets	10 9	2 0	-81%
income before income Net tax	335 2	453 5	35%
Income tax	-79 1	-126 7	60%
income Net	256 2	326 8	28%

BANCO BPI BALANCE SHEET

M.€ In	Dec 23	Jun 24
ASSETS
Cash and cash balances central banks and other demand deposits at	1 856	3 290
Financial held for trading fair value through profit or loss and fair assets , at at value through other comprehensive income	1 365	1 304
Financial amortised assets at cost	34 541	35 013
Of which: Loans Customers to	29 540	29 843
Investments in joint and associates ventures	221	217
Tangible assets	208	197
Intangible assets	106	103
Tax assets	170	168
and disposal groups classified as held for sale Non-current assets	15	15
Other assets	147	193
Total assets	38 628	40 499
LIABILITIES
Financial liabilities held for trading	58	49
Financial liabilities amortised at cost	33 705	35 738
- Central Banks and Credit Deposits Institutions	1 062	924
Deposits - Customers	29 252	30 408
Debt issued securities	3 106	128 4
Of which: subordinated liabilities	435	435
Other financial liabilities	286	278
Provisions	40	37
Tax liabilities	211	345
Other liabilities	639	556
Total Liabilities	34 653	36 726
Shareholders' equity attributable the shareholders of BPI to	3 975	3 773
controlling Non interests	0	0
Total Shareholders' equity	3 975	3 773
Total liabilities and Shareholders' equity	38 628	40 499

BANCO BPI INDICATORS

Profitability Efficiency and Liquidity Indicators , (Bank of Portugal no. 16/2004 with the amendments of 6/2018) Instruction Instruction	23 Jun	24 Jun
Gross income / ATA	3 2%	3 7%
before and attributable non-controlling / Net income income tax income to interests ATA	7% 1	2 3%
before and attributable non-controlling / Net income income income interests tax to average shareholders' equity (including non-controlling interests)	17 5%	23 7%
income 1) Staff / Gross expenses	20 0%	17 1%
income 1) Operating / Gross expenses	40 7%	34 3%
(net) deposits Loans to ratio	102%	99%
ratio and forborne NPE (according the EBA criteria) to	Jun 23	Jun 24
Non-performing (M €) - NPE exposures	616	539
NPE ratio	1 6%	1 4%
by NPE impairments coverage	93%	95%
by and collaterals NPE impairments coverage	150%	152%
NPE 2) Ratio of forborne included in not	1 0%	1 2%
"Crédito duvidoso" (non-performing loans) (according Bank of criteria) to Spain	23 Jun	24 Jun
€) 3) "Crédito duvidoso" (M	610	528
"Crédito duvidoso" ratio	1 9%	1 6%
"Crédito duvidoso" by impairments coverage	94%	97%
"Crédito duvidoso" by impairments and collaterals coverage	150%	151%

31

2) Forborne according to EBA criteria. On June 2024, the forborne was 736 M.€ (forborne ratio of 1.7%), of which 505 M.€ was performing loans (1.2% of the gross credit exposure) and 231 M.€ was included in NPE (0.5% of the gross credit exposure).

3) Includes guarantees provided (recorded off-balance sheet).

¹⁾ Excluding early-retirement costs.

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

Profit & loss account

		BPI	Business segment
Jun 24 (M .€)	As reported by BPI	contribution to CABK Group	BPI	Corporate Center
Net interest income	492	490	486	3
Dividends	53	54	9	45
Equity accounted income	29	29	10	18
Net fees and commissions	168	168	168
Trading income	15	17	17	( 0)
Other operating income & expenses	( 28)	( 26)	( 22)	( 4)
income Gross	729	731	668	63
Operating expenses	( 250)	( 256)	( 256)
Extraordinary operating expenses	( 23)
Pre-impairment income	456	475	412	63
Impairment losses on financial assets	( 4)	( 4)	( 4)	( 0)
Other impairments and provisions	0	( 18)	( 18)	0
Gains/losses on disposals others &	2	2	2	0
income Pre-tax	454	454	391	63
Income tax	( 127)	( 127)	( 125)	( 2)
income Net	327	327	266	61

Loan portfolio & customer resources

2024 (M.€) June	As reported by BPI	Adjustments	contribution BPI to (BPI segment) CABK Group
and advances Loans to customers, net	29 843	( 89)	29 754
Total funds customer	39 343	(4 338)	35 005

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 30 June 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.

Adopted acronyms and designations			Units, conventional sings and abbreviations
YtD		Year-to-date change	€, Euros, EUR		euros
YoY		Year-on-year change	th.€, th.euros		thousand euros
QoQ		quarter-on-quarter change	M.€, M.euros		million euros
ECB		European Central Bank	Bn.€, Bi.€		billion euros
BoP		Bank of Portugal			change
CMVM		Securities Market Commission	n.a.		not available
APM		Alternative Performance Measures	0, –		null or irrelevant
MMI		Interbank Money Market	vs.		versus
T1		Tier 1	b.p.		basis points
CET1		Common Equity Tier 1	p.p.		percentage points
RWA		Risk weighted assets	E		Estimate
TLTRO		Targeted longer-term refinancing operations	F		Forecast
LCR		Liquidity coverage ratio
NSFR		Net stable funding ratio

Reconciliation of Banco BPI profit & loss account structure

used in the Results' Presentation Structure	Jun 24	Jun 24	presented in the financial and respective Structure statements notes
Net interest income	491.7	491.7	Net interest income
Dividend income	53.5	53.5	Dividend income
Equity accounted income	28.7	28.7	Share of the profit or (-) loss of investments in subsidiaries, joint and associates accounted for using the equity method ventures
fee and Net commission income	167.9	182.5	and Fee commission income
		-14.6	Fee and commission expenses
Gains/(losses) on financial and liabilities and assets	15.1	0.2	Gains or (-) losses on derecognition of financial and liabilities measured fair value through profit or loss, assets not at net
other		3.2	or (-) losses on financial and liabilities held for trading, Gains assets net
		-1.8	Gains or (-) losses on non-trading financial mandatorily fair value through profit or loss, assets at net
		7.5	Gains or (-) losses from hedge accounting, net
		6.0	Exchange differences [gain or (-) loss], net
Other operating income and expenses	-27.7	13.3	Other operating income
		-41.0	Other operating expenses
income Gross	729.2	729.2	GROSS INCOME
Staff expenses	-147.6	-147.6	Staff expenses
Other administrative expenses	-94.1	-94.1	Other administrative expenses
Depreciation and amortisation	-31.4	-31.4	Depreciation
Operating expenses	-273.2	-273.2	Administrative expenses and depreciation
operating income Net	456.0	456.0
Impairment losses and other provisions	-4.5	1.4	of Provisions or (-) reversal provisions
		-5.9	Impairment or (-) reversal of impairment on financial measured fair value through profit or loss assets not at
and losses other Gains in assets	2.0		or (-) reversal of of subsidiaries, and Impairment impairment investments in joint ventures associates
			Impairment or (-) reversal of impairment on non-financial assets
			Gains or (-) losses on derecognition of investments in subsidiaries, joint and associates, ventures net
		1.2	or (-) losses on derecognition of non financial Gains assets, net
		0.8	Profit or (-) loss from and disposal groups classified as held for sale qualifying as discontinued non-current assets not operations
Net income before income tax	453.5	453.5	PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS
Income tax	-126.7	-126.7	related profit or loss from Tax expense or income to continuing operations
income from continuing operations Net	326.8	326.8	(-) PROFIT OR LOSS AFTER TAX FROM CONTINUING OPERATIONS
Net income from discontinued operations			Profit or (-) loss after from discontinued operations tax
income Net	326.8	326.8	PROFIT OR (-) LOSS FOR PERIOD TO OWNERS OF THE ATTRIBUTABLE 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)	Operating expenses, excluding costs with early-retirements and voluntary terminations and other non recurrent / Gross income 2
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
Return on Assets (ROA)1)	(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