Banco Comercial Portugues

Investor Presentation • Feb 5, 2024

CONSOLIDATED RESULTS

12M23 BANCO BPI CONSOLIDATED RESULTS

05 FEBRUARY 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 CREDIT, MORE INNOVATION, MORE COMMITMENT

• Business growth and market share gains: mortgage loans grew 3% and corporate loans expanded 5%
• High capitalisation and comfortable liquidity: CET1 ratio of 14.1% and total ratio of 17.9% exceed the minimum requirements by a significant margin
• Low and stable risk: NPE of 1.5%, covered at 154%, and cost of credit risk of 0.16%
• Core income increased 43% and efficiency improved to 39%
• 444 M.€ net profit in Portugal (+86% yoy) and 524 M.€ consolidated (+42% yoy)
• Sustainable business: +1.9 Bn.€ in 2023

BPI 2023 RESULTS

Commercial activity in Portugal	Loans  yoy +0.9 Bn.€ +3%	Deposits  yoy -1.0 Bn.€ -4% Total customer resources -1.1 Bn.€ -3%	 yoy Core +43% income +72% Net interest income	Digital Banking Regular users 924 th. BPI app users +88 th.  yoy
Risk, liquidity and capitalisation	NPE ratio 1.5% (EBA criteria) 154% Coverage (by impairments and collaterals)	Cost of Risk 0.16% (as % of loans and guarantees)	Loan to deposit ratio 99% (loans as % of deposits)	14.1% CET1 15.5% T1 17.9% Total (Phasing-in)
Profit and profitability	Net profit in Portugal  yoy 444 M.€ +86%	Recurrent ROTE in Portugal 16.0%	Cost-to-core income in Portugal 39%	Consolidated net profit  yoy 524 M.€ +42%

CONSOLIDATED NET PROFIT OF 524 M.€ IN 2023 (+42%)

€ In M	Dec 22	1) Dec 23	Δ%
Activity in Portugal
profit Recurrent net	253	484	91%
impacts 2) Non-recurrent	-15	-41	-
profit in Portugal Net	238	444	86%
contribution BFA	96	42	-57%
BCI contribution	34	39	+13%
Consolidated profit net	369	524	+42%
▪ The evolution of BFA's contribution essentially reflects the impact of the appreciation of the Kwanza in 2022 and its

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devaluation in 2023.

• Increase in income underpinned by commercial activity growth and rise in market interest rates
• Increase in costs incorporates the effects of inflation and investment in new technology projects
• Stable cost of risk

1) Restated to reflect the impacts on equity holdings in insurance companies of the adoption of IFRS17 that came into force in 2023.

2) Costs with early retirements and voluntary terminations and also in 2023 the conversion into a cash payment of the irrevocable commitment regarding the contributions from previous years to the deposit guarantee fund and the capital gain on the sale of BPI Suisse in April 2023.

COMMERCIAL BANKING GROSS INCOME INCREASED 43%

Gross income in the activity in Portugal					Net interest income increases
					Higher market interest rates
	1)				Growth in loan volume
€ In M	Dec 22	Dec 23	%		Increase in the cost of deposits
interest income Net	548	943	72%		Cost of MREL / covered bond issues
Dividends and equity accounted income	33	21	-36%		End of interest rate bonus on ECB funding (TLTRO) at the end of June 2022
fee and Net commission income	296	291	-1%		Stable fees and commissions
COMMERCIAL BANKING GROSS INCOME	877	1 255	43%		# Accounts
(net) 2 Other income	( 15)	( 59)	-283%		Corporate debt issues
					Mutual funds and capitalisation insurance
income Gross	861	1 196	39%		Loans and guarantees
					Insurance brokerage

1) Restated for adoption on IFRS17.

6

2) Gains/(losses) on financial assets & liabilities and Other operating income and expenses. Includes regulatory costs of 49 M.€ in 2022 and 81 M.€ in 2023 with banking sector contribution, additional solidarity levy and contributions to the Deposit Guarantee Fund, Single Resolution Fund and National Resolution Fund.

LOAN PORTFOLIO GREW 3% YOY

Loans to Customers by segment

MARKET SHARE GAINS IN MORTGAGE LOANS

8

MARKET SHARE GAINS IN CORPORATE LOANS

9

CUSTOMER RESOURCES DECREASED 3% YOY

10

In Bn €	1) Dec 22	Dec 23	YoY
Customer deposits I	30 3	29 3	-4%
Off-balance sheet II resources	8 7	8 7	0%
Mutual funds	4 3	4 3	1%
Capitalisation insurance	3 4	3 4	-1%
Public offerings	0 1	0 1	-
Total	39 0	37 9	-3%

▪ In addition there was a 0.3 Bn.€ yoy increase in structured products placed with Customers in Dec.23.

Customer Resources Stable market shares

	Dec 23	 YoY
Customer resources 2	11.2%	-0.2 p.p.
Deposits	10.7%	-0.2 p.p.
Mutual funds	10.6%	-1.0 p.p.
Capitalisation insurance	17.9%	-0.6 p.p.
Retirement savings plans	12.0%	+0.6 p.p.

Source: BPI, Bankof Portugal, APFIPP, APS, BPI Vida e Pensões.

DIGITAL BANKING GAINS MORE RELEVANCE

11

Dec.20 Dec.21 Dec.22 Dec.23

BPI ALL IN ONE, TRANSFORMING THE CUSTOMER EXPERIENCE

Opening of the largest commercial banking space in 2023

Largest commercial banking space 2,300 square metres in Lisbon

All the commercial networks in a single space

Individuals, Corporate, Businesses, Premier and Private Banking

Awards

• London Design Awards 2023 "Better Future" Category
• Real Estate Award Category "Interior Design - Commerce", an initiative of SIC Notícias TV channel and Expresso newspaper

Commitment to Sustainability

• Renovation of BPI Monumental was distinguished with LíderA certification
• Certification of Environmental Management System of Monumental Building (ISO 14 001)

INVESTMENT INCREASES AND COST-TO-INCOME IMPROVES

TAX, REGULATORY COSTS AND SOCIAL SECURITY CONTRIBUTIONS OF 335 M.€ IN 2023

LOW RISK AND HIGH COVERAGE

1) Net book value.

CREDIT RENEGOTIATION

ADEQUATELY COVERED PENSIONS

Employee pension liabilities

M.€	Dec 22	Dec 23
Total past service liability	1 514	1 724
Pension funds net assets	1 714	1 780
Level of coverage of pension liabilities	113%	103%
Pension fund return	-8.7%	8.1%

HIGH CAPITALISATION

BALANCED FUNDING AND COMFORTABLE LIQUIDITY

Early repayment of ECB funding in Dec.23

1) 12-month average, in accordance with the EBA guidelines. Average value (previous 12 months) of the calculation components: Liquidity reserves (6 006 M.€); Total net outflows (3 712 M.€).

19 2) High Quality Liquid Assets (HQLA) of 6.2 Bn.€ and other assets eligible as collateral with ECB of 5.5 Bn.€

A BANK COMMITTED TO SUSTAINABILITY

	To support the			OBJECTIVES	REACHED 2022-2023
	sustainable transition of companies and society	Global	Sustainable business	4 Bn.€	4.1 Bn.€
	To lead in social impact		Investment by BPI "la Caixa" Foundation	120 M.€	90 M.€
	and promote social inclusion	Social	Beneficiaries	200 th.	212 th.
	To lead in Governance best practices	Governance	Women in management positions	43%	44%

Health and Well-being 3rd Week with + 1 000 participants

Health Pools from WeGuide – the Land of Dreams, for Employees with

50% increase in study allowance for children from 10th to 12th grades

2 new Talent Academies: Artificial Intelligence and Commercial

Training: 200,000 hours of training provided

^≈50 M.€ in 2023

"la Caixa" Foundation initiative in collaboration with BPI

Social Programmes . Health Research and Innovation . Culture . Education and Scholarships

Commitment to People Commitment to Society Commitment to the Environment

In 2023:

BPI | "la Caixa" Foundation Awards

Four awards: Capacitar, Solidário, Séniores, Infância 4.8 M.€ | 134 projects supported | 18.3 th. beneficiaries | 68 volunteers

Decentralised Social Initiative

1.62 M.€ | 262 projects supported | 55 thousand beneficiaries Support to local projects decided through the commercial networks

Proximity Projects

2.3 M.€ (9M 23) in the areas of culture and science, social, education and scholarships

Scholarship programme for BPI League women players

19 Scholarships attributed by the Portuguese Football Federation with the support of BPI | "la Caixa" Foundation

TUMO Coimbra - Centre for Creative Technologies: free educational programme for 1,500 young people (12 to 18 years old)

In 2023: BPI Voluntary Service Programme 3rd Volunteering Week From 16 to 22 October 2023 ~2 500 Volunteers 200 Initiatives World Youth Day BPI, the 5th national company with the highest number of volunteers BPI Volunteers promote social inclusion ▪ Financial literacy initiatives with Junior Achievement Portugal. ▪ Open Banking Day and "At the School Bench" initiatives of the Portuguese Banking Association. ▪ World Savings Day to pass on saving concepts and tips to children. BPI AGE promotes financial literacy through the publication of educational contents. Financial Literacy 308 initiatives 34 965 direct beneficiaries 4 024 Volunteers registered on the platform Commitment to People Commitment to Society Commitment to the Environment

Commitment to People Commitment to Society Commitment to the Environment

• 1st bank to join act4nature Portugal, a BCSD Portugal initiative (2023)
• Environmental Management System (EMS) Certification covering banking and support activity in Casal Ribeiro (2021), Boavista and Saudade (2022) and Monumental (2023) buildings

Support to sustainable transition: 1.9 Bn.€ sustainable business in 2023

AWARDS ATTRIBUTED

Cross-sectional evaluation of projects focusing on business resilience, innovation and social and environmental responsibility

RECOGNITION

CONSOLIDATED RESULTS

ANNEXES

01 BPI Ratings versus peers

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

02

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

Alternative Performance Measures

BPI RATINGS VS. PEERS As of 1st February 2024

	(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	A+	A (high)
st	A	A2 Deposits	A	Bank 1 A
e v n	A	A3	Deposits Bank 1 A Senior debt	A (low)
I	Bank 1 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	BB	Bank 4 BB
m st e	BB	Ba3	BB	BB (low)
d e a v r	B+	B1	Bank 4 B+	B (high)
n g I -	B	B2	B	B
n o N	B	B3	B	B (low)
	CCC+	Caa1	CCC+	CCC (high)

Moody's: On 22 Nov 23, upgraded BPI deposits rating to A2 and the rating of its mortgage covered bonds to Aaa. On 26 May 23 upgraded BPI and its senior debt ratings to Baa1. The ratings' outlook is Stable.

Fitch Ratings: on 30 Jun.23 upgraded BPI's rating to BBB+, with a Stable Outlook, and its senior debt and deposit ratings to A-.

DBRS: on 4 Jul.23 upgraded BPI's mortgage covered bond rating to AA.

INCOME STATEMENT OF THE ACTIVITY IN PORTUGAL

€ In M	22 Dec restated 1	23 Dec	%
Net interest income	548 5	943 0	72%
Dividend income	4 1	2 0	-52%
Equity accounted income	28 4	18 7	-34%
fee and Net commission income	295 7	291 4	-1%
Gains/(losses) financial and liabilities and other assets on	25 4	21 3	-16%
Other operating income and expenses	-40 7	-80 0	-96%
Gross income	861 4	196 1 5	39%
Staff expenses	-238 4	-251 5	5%
Other administrative expenses	-139 7	-167 7	20%
Depreciation and amortisation	-67 5	-73 3	9%
Recurring operating expenses	6 -445	-492 5	11%
Non-recurrent costs	-21 2	-33 7	59%
Operating expenses	-466 8	-526 2	13%
Net operating income	394 6	670 3	70%
losses and other Impairment provisions	-67 4	0 -54	-20%
and losses other Gains in assets	-0 1	7 3	-
before Net income income tax	327 1	623 5	91%
Income tax	-88 7	-179 9	103%
income Net	238 5	443 7	86%
income Recurrent net	253 1	484 3	91%

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BALANCE SHEET OF THE ACTIVITY IN PORTUGAL

1) Includes medium and long-term sovereign debt of 4.0 Bn.€ (Portugal 30%; Spain 25%, Italy 17%, European Union 16% and USA 11%), with an average residual maturity of 3.3 years.

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LOAN PORTFOLIO AND CUSTOMER RESOURCES

Gross portfolio in € M ,	Dec 22	Dec 23	YoY
individuals I Loans to	15 984	16 241	2%
loans Mortgage	183 14	14 557	3%
Other loans individuals to	1 800	1 684	-6%
companies II Loans to	10 945	494 11	5%
Public III sector	2 233	2 338	5%
Total loans	29 161	30 073	3%
Note:
portfolio of Loan net impairments	28 630	29 540	3%

Loan portfolio				Customer resources
portfolio in Gross M € ,	Dec 22	Dec 23	YoY	€ In M	Dec 22	Dec 23
individuals I Loans to	984 15	16 241	2%	deposits I Customer	30 326	29 252
loans Mortgage	14 183	14 557	3%	Off-balance sheet II resources	8 671	8 654
Other loans individuals to	1 800	1 684	-6%	Mutual funds	4 278	4 311
companies II Loans to	10 945	494 11	5%	Capitalisation insurance	313 4	263 4
Public III sector	2 233	2 338	5%	Public offerings	81	79
Total loans	29 161	30 073	3%
Note:				Total	38 998	37 905
portfolio of Loan net impairments	28 630	29 540	3%	In addition, the placement of structured products ▪ increased by 0.3 Bn.€ in Dec. 23 YoY.

CONSOLIDATED INCOME STATEMENT

In M €	Dec 22 restated 1	Dec 23	%
Net interest income	559 4	948 9	70%
Dividend income	91 5	74 5	-19%
accounted Equity income	71 2	60 6	-15%
fee and Net commission income	295 7	291 4	-1%
Gains/(losses) financial and liabilities and other assets on	37 7	-21 3	-156%
Other operating income and expenses	-47 7	-85 8	-80%
income Gross	1 007 8	1 268 5	26%
Staff expenses	-259 6	-283 4	9%
Of which: staff Recurrent expenses	-238 4	-251 5	5%
Non-recurrent costs	-21 2	-31 9
Other administrative expenses	-139 7	-169 5	21%
and Depreciation amortisation	-67 5	-73 3	9%
Operating expenses	-466 8	-526 2	13%
operating income Net	0 541	742 3	37%
Impairment losses and other provisions	-76 2	2 -54	-29%
Gains and losses in other assets	-0 1	7 3	-
income before income Net tax	464 6	695 4	50%
Income tax	-95 7	-171 4	79%
income Net	368 9	524 0	42%

CONSOLIDATED BALANCE SHEET

In M.€	Dec 22 restated 1	Dec 23
ASSETS
Cash and cash balances central banks and other demand deposits at	2 466	856 1
Financial held for trading fair value through profit or loss and fair assets , at at value through other comprehensive income	1 613	1 365
Financial amortised assets at cost	33 753	34 541
Of which: Loans Customers to	28 630	29 540
and Investments in joint ventures associates	278	221
Tangible assets	198	208
Intangible assets	108	106
Tax assets	184	170
Non-current and disposal groups classified as held for sale assets	26	15
Other assets	288	147
Total assets	38 914	38 628
LIABILITIES
for Financial liabilities held trading	87	58
Financial liabilities amortised at cost	34 436	33 705
Deposits - Central Banks and Credit Institutions	494 1	062 1
- Customers Deposits	30 326	29 252
Debt issued securities	2 339	3 106
Of which: subordinated liabilities	431	435
Other financial liabilities	276	286
Provisions	49	40
liabilities Tax	125	211
Other liabilities	343	639
Total Liabilities	35 040	34 653
Shareholders' equity attributable the shareholders of BPI to	3 874	3 975
Non controlling interests	0	0
Total Shareholders' equity	3 874	3 975
Total liabilities and Shareholders' equity	38 914	38 628

1) Restated for the impacts on the equity stakes in insurance companies from the adoption of IFRS17 that became effective at the beginning of 2023.

CONSOLIDATED INDICATORS

Profitability Efficiency and Liquidity Indicators , (Bank of Portugal no. 16/2004 with the amendments of 6/2018) Instruction Instruction	1) 22 Dec	23 Dec
/ Gross income ATA	2 4%	3 3%
before and attributable non-controlling / Net income income income interests ATA tax to	1 1%	1 8%
before and attributable non-controlling / Net income income tax income to interests shareholders' equity (including non-controlling interests) average	12 0%	18 1%
income 2) Staff / Gross expenses	23 7%	19 8%
income 2) Operating / Gross expenses	2% 44	38 8%
(net) deposits ratio Loans to	94%	101%
ratio and forborne NPE (according to the criteria) EBA	22 Dec	23 Dec
Non-performing - NPE (M €) exposures	583	560
NPE ratio	6% 1	5% 1
by NPE impairments coverage	94%	98%
by and collaterals NPE impairments coverage	155%	154%
NPE 3) Ratio of forborne included in not	0 4%	1 3%
"Crédito duvidoso" (non-performing loans) (according to Bank of Spain criteria)	Dec 22	Dec 23
€) 4) "Crédito duvidoso" (M	589	553
"Crédito duvidoso" ratio	1 9%	1 7%
"Crédito duvidoso" by impairments coverage	93%	99%
"Crédito duvidoso" by impairments and collaterals coverage	153%	155%

1) Restated for the impacts on the equity stakes in insurance companies from the adoption of IFRS17 that became effective at the beginning of 2023.

2) Excluding early-retirement costs.

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3) Forborne according to EBA criteria. On December 2023, the forborne was 785 M.€ (forborne ratio of 1.9%), of which 540 M.€ was performing loans (1.3% of the gross credit exposure) and 246 M.€ was included in NPE (0.6% of the gross credit exposure).

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

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

Profit & loss account

			BPI	Business segment
23 (M.€) Dec	reported As by BPI	Adjustments 1) contribution to CABK Group		BPI	Corporate Center
Net interest income	949	( 4)	945	928	18
Dividends	75	0	75	2	73
accounted Equity income	61	( 0)	61	19	42
Net fees and commissions	291	( 0)	291	291
Trading income	( 21)	4	( 17)	25	( 42)
Other operating income & expenses	( 86)	3	( 82)	( 77)	( 6)
Gross income	268 1	4	272 1	188 1	84
Operating expenses	( 492)	( 8)	( 501)	( 501)
Extraordinary operating expenses	( 34)	34
Pre-impairment income	742	29	771	687	84
Impairment losses on financial assets	( 51)	( 0)	( 51)	( 51)	( 0)
Other and impairments provisions	( 3)	( 30)	( 34)	( 34)	0
Gains/losses on disposals & others	7	( 18)	( 11)	( 11)	( 0)
income Pre-tax	695	( 20)	676	592	84
Income tax	( 171)	4	( 168)	( 173)	5
Profit for the period	524	( 16)	508	419	89
other Minority interests &
Net income	524	( 16)	508	419	89

Loan portfolio & customer resources

December 2023 (M.€)	As reported by BPI	Adjustments	BPI contribution to (BPI segment) CABK Group
and advances Loans to customers, net	29 540	( 109)	29 430
funds Total customer	37 905	(4 206)	33 699

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 2023, 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, for the consolidated profit & loss account, 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 the consolidated profit & loss account structure

Structure used in the Results' Presentation	Dec 23	Dec 23	Structure presented in the financial statements and respective notes
Net interest income	948.9	948.9	Net interest income
Dividend income	74.5	74.5	Dividend income
Equity accounted income	60.6	60.6	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	291.4	320.0	Fee and commission income
		-28.6	Fee and commission expenses
Gains/(losses) on financial assets and liabilities and other	-21.3	-7.2	Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net
		6.8	Gains or (-) losses on financial assets and liabilities held for trading, net
		-0.4	Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net
		9.0	Gains or (-) losses from hedge accounting, net
		-29.5	Exchange differences [gain or (-) loss], net
Other operating income and expenses	-85.8	18.3	Other operating income
		-104.1	Other operating expenses
Gross income	1 268.5	1 268.5	GROSS INCOME
Staff expenses	-283.4	-283.4	Staff expenses
Other administrative expenses	-169.5	-169.5	Other administrative expenses
Depreciation and amortisation	-73.3	-73.3	Depreciation
Operating expenses	-526.2	-526.2	Administrative expenses and depreciation
Net operating income	742.3	742.3
Impairment losses and other provisions	-54.2	-2.4	Provisions or (-) reversal of provisions
		-51.7	Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss
Gains and losses in other assets	7.3	-1.6	Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates
			Impairment or (-) reversal of impairment on non-financial assets
		8.5	Gains or (-) losses on derecognition of investments in subsidiaries, joint ventures and associates, net
		-1.4	Gains or (-) losses on derecognition of non financial assets, net
		1.8	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	695.4	695.4	PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS
Income tax	-171.4	-171.4	Tax expense or income related to profit or loss from continuing operations
Net income from continuing operations	524.0	524.0	PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS
Net income from discontinued operations			Profit or (-) loss after tax from discontinued operations
Income attributable to non-controlling interests			Profit or (-) loss for the period attributable to non-controlling interests
Net income	524.0	524.0	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)	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 + 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

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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