Banco Comercial Portugues

Investor Presentation • Oct 30, 2023

CONSOLIDATED RESULTS

3Q23 BANCO BPI CONSOLIDATED RESULTS

30 OCTOBER 2023

1

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.

3

BPI IN SEPTEMBER 2023

▪ Mortgage loans grew 4% yoy, with a market share in origination of 19.3%, and Corporate loans grew 2% yoy

▪ Financial strength: CET1 and total capital ratios of 14.5% and 18.4%

▪ Low risk: NPE of 1.5%, covered at 158%

▪ Efficiency improves to 40.8% and cost of credit risk stable (0.23%)

▪ 324 M.€ net profit in Portugal (+100% yoy) and 390 M.€ consolidated net profit (+35% yoy)

▪ Global Finance awards BPI for innovation and transformation

BPI RESULTS

In 9 months of 2023

Commercial activity in Portugal	Loans yoy  +0.8 Bn.€ +3%	Deposits  yoy -2.0 Bn.€ -6% Total customer resources -5%	 yoy Gross +50% income +84% Net interest income	Digital Banking Regular users 919 th. BPI app users +107 th.  yoy
Risk, liquidity and capitalisation	NPE ratio 1.5% (EBA criteria) 158% Coverage (by impairments and collaterals)	Cost of Risk 0.23% (as % of loans and guarantees; last 12 months)	Loan to deposit ratio 101% (loans as % of deposits)	14.5% CET1 16.0% T1 18.4% Total (Phasing-in)
Profit and profitability	Profit in Portugal  yoy 324 M.€ +100%	Recurrent ROTE in Portugal 13.7% (last 12 months)	Cost-to-core income in Portugal 40.8% (last 12 months)	Consolidated net profit  yoy 390 M.€ +35%

CONSOLIDATED NET PROFIT OF 390 M.€ IN SEP.23 (+35%)

In M.€	Sep 22	1) Sep 23	Δ%
Activity in Portugal
Recurrent net profit	166	329	98%
Non-recurrent impacts 2)	-4	-5	-
Net profit in Portugal	162	324	100%
BFA contribution	102	42	-59%
BCI contribution	25	24	-2%
Consolidated net profit	289	390	+35%
▪ BFA contribution in 9M23 includes 2022 dividend and impact of

Kwanza devaluation on receivables

• 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

166 329 +307 -41 -13 -90 Sep22 Sep23 Commercial banking gross income Net loan impairments Income tax and other Recurrent costs Recurrent ROTE (last 12 months) 7.4% Sep.22 13.7% Sep.23 M.€

2) Costs with early retirements and voluntary terminations, and capital gain on the sale of BPI Suisse in April 2023.

5

COMMERCIAL BANKING GROSS INCOME INCREASED 50%

					Net interest income increases
Gross income in the activity in Portugal					Higher market interest rates
	1)				Growth in loan volume
In M.€	Sep 22	Sep 23	%		Increase in the cost of deposits
Net interest income	374	688	84%		Cost of MREL / covered bond issues
Dividends and equity accounted income	25	17	-31%		End of interest rate bonus on ECB funding (TLTRO) at the end of June 2022
Net fee and commission income	219	218	0%		Stable fees and commissions
COMMERCIAL BANKING GROSS INCOME	617	924	50%		# Accounts
Other income (net) 2	( 15)	( 22)	-44%		Corporate debt issues
					Mutual funds and capitalisation insurance
Gross income	602	902	50%		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 48.3 M.€ in 9M22 and 41.5 M.€ in 9M23 with banking sector contribution, additional solidarity levy and contributions to the Single Resolution Fund and National Resolution Fund.

LOAN PORTFOLIO GREW 3% YOY

Loans to Customers by segment

MARKET SHARE GAINS IN MORTGAGE LOANS

MARKET SHARE GAINS IN CORPORATE LOANS

9

CUSTOMER RESOURCES DECREASED 5% YOY

Customer Resources Market shares

10

In Bn €	1) Sep 22	Sep 23	YoY	YtD
deposits I Customer	30 4	28 4	-6%	-6%
Off-balance sheet II resources	8 8	8 6	-2%	-1%
Mutual funds	4 3	4 3	0%	0%
Capitalisation insurance	4 2	4 3	1%	-1%
Public offerings	0 3	0 1	-	-
Total	39 1	37 0	-5%	-5%

▪ In addition there was a 0.4 Bn.€ yoy increase in structured products placed with Customers in Sep.23.

	Aug 23	 YoY
Customer resources 2	11.1%	-0.3 p.p.
Deposits 3	10.5%	-0.5 p.p.
Mutual funds	11.0%	-0.1 p.p.
Capitalisation insurance	18.3%	+0.1 p.p.
Retirement savings plans	11.8%	+0.4 p.p.

Source: BPI, Bank of Portugal, APFIPP, APS, BPI Vida e Pensões.

INVESTMENT INCREASES AND COST-TO-INCOME IMPROVES

1) Restated for adoption of IFRS17.

2) Adjusted for sale of BPI Suisse.

11

3) Distribution network: 272 branches, 11 Premier centres, 4 Private Banking and Wealth centres, 1 mobile branch, 1 DayOne branch and 29 corporate and institutional banking centres.

REGULATORY COSTS OF 41.5 M.€ IN 2023

LOW RISK AND HIGH COVERAGE

1) Net book value

CREDIT RENEGOTIATION

Renegotiation of mortgage loans (DL 80-A/2022)

Real estate received in settlement of defaulting mortgage loans

ADEQUATELY COVERED PENSIONS

Employee pension liabilities
M €	22 Dec	Sep 23
Total service liability past	1 514	1 458
funds Pension net assets	1 714	1 651
Level of of pension liabilities coverage	113%	113%
fund (YTD , non-annualised) Pension return	-8 7%	-0 6%
Discount rate	3 8%	1% 4

HIGH CAPITALISATION

BALANCED FUNDING AND COMFORTABLE LIQUIDITY

ECB funding of 0.4 Bn.€

17 1) 12-month average, in accordance with the EBA guidelines. Average value (previous 12 months) of the calculation components: Liquidity reserves (6 456 M.€); Total net outflows (3 940 M.€). 2) High Quality Liquid Assets (HQLA) of 5.7 Bn.€ and other assets eligible as collateral with ECB of 4.6 Bn.€

A BANK COMMITTED TO SUSTAINABILITY

COMMITMENT TO PEOPLE, SOCIETY AND THE ENVIRONMENT

1st Edition of DTI (Data, Transformation, Impact ) Academy has already started

Commercial Academy's new Trainees have already arrived at BPI

Commitment to People Commitment to Society Commitment to the Environment

• Health and Well-being 3rd Week with + 1 000 participants
• Health Pools from WeGuide the Land of Dreams, for Employees with oncological diseases
• 50% increase in study allowance for children from 10th to 12th grades
• 2 new Talent Academies: Artificial Intelligence and Commercial
• 2nd Edition of Work Experience for Employees' children
• Training: +100,000 hours of training provided

COMMITMENT TO PEOPLE, SOCIETY AND THE ENVIRONMENT

50 M.€

"la Caixa" Foundation initiative

in 2023

in collaboration with BPI

Commitment to People Commitment to Society

Commitment to the Environment

BPI | "la Caixa" Foundation Awards | 4.6 M.€ in 2023 57 projects worth +2 M.€, benefiting +5 thousand people (10M23)

Decentralised Social Initiative| 1.5 M.€ in 2023 182 projects worth 1.1 M.€, benefiting almost 37 thousand people (9M23)

Proximity projects 2.3 M.€ in the areas of culture and science, social, education and scholarships (9M23)

Scholarship programme for BPI League women players 20 Scholarships to be awarded by the Portuguese Football Federation with the support of BPI | "la Caixa" Foundation

Financial Literacy: Open Banking Day with the PBA Secondary school students visited BPI All in One to learn about BPI products and solutions

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

9M23 data 3rd Volunteering Week From 16 to 22 October 2023 2 300 Volunteers ~200 Initiatives 84 Initiatives 20 thousand Direct beneficiaries 3 574 Volunteers registered on the platform

COMMITMENT TO PEOPLE, SOCIETY AND THE ENVIRONMENT

BPI Volunteering Service Programme

Commitment to People Commitment to Society Commitment to the Environment

MAKING A DIFFERENCE BEGINS WITH YOU. AND IT'S A PART OF US

COMMITMENT TO PEOPLE, SOCIETY AND THE ENVIRONMENT

Values reported as defined in the Sustainability Master Plan.

BPI SUPPORTS THE SUSTAINABLE TRANSITION OF COMPANIES AND SOCIETY

Offering for Companies

▪ Credit lines to support sustainability and innovation among the Portuguese companies

Offering for Individuals

• Energy Efficiency mortgage loan
• Renewable energies personal loan and sustainable prestige products
• Sustainable Mutual Funds

Specialised teams

▪ Teams qualified to support all activity sectors

Public Support to Companies Portal

• Innovative and free-of-charge
• Identification of application opportunities
• Subscription to personalised alerts

Sustainability accelerator

• Workshops with Corporate Clients
• Training academy

Customised sessions with specialised consultants ▪ 20 meetings in 2023

Events for Corporate Clients

• 37 events in 2023
• "Talking about", Fairs and Sponsorships, award events, among others.

Recognition Awards

• PNT and PNA , with specific sustainability and innovation categories
• PNI and PEXXI reward innovation

DIGITAL BANKING GAINS MORE RELEVANCE

1) Cumulative number of sales of focus Products: Mutual Funds/RSP, Prestige Products, Personal Loans, Credit Cards and Stand Alone Insurance 2) BASEF Banks - September 2023 (main banks).

RECOGNITION

BEST CRM FOR PRIVATE BANKING IN EUROPE PWM CULTURE AND RISK PROJECT BEST ADVANCE IN CUSTOM CONTENT MARKET MEMBER – BONDS MARKET RUNNER - BONDS EURONEXT LISBON AWARDS BEST TREASURY & CASH MANAGEMENT AWARDS 2023 GLOBAL FINANCE

RECOGNITION

BRANDON HALL GROUP

CONSOLIDATED RESULTS

Unaudited accounts

ANNEXES

01 BPI Ratings versus peers

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

03

02

04

Alternative Performance Measures

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

On 25th October 2023

BPI RATINGS VS. PEERS

	(Long Term Debt/ Issuer Credit Rating)	(Long Term Debt/ Issuer rating)	(Issuer Default Rating)	(Long-Term Debt/ Issuer Rating)
	…AA+ e AAA	…Aa1, e Aaa	…AA, AA+ e AAA	…AA, AA (high), AAA
	AA	Mortgage bonds Aa2	AA	Mortgage bonds AA
t	AA-	Aa3	AA	AA (low)
n e e	A+	A1	A+	A (high)
m d st a r	A	A2	A	Bank 1 A
e G v n	A	A3 Deposits	Deposits Bank 1 A Senior debt	A (low)
I	Bank 1 BBB+	Bank1 Baa1	BBB+	Bank 3 BBB (high)
	BBB	Bank3 Baa2	Bank 3 BBB	BBB
	Bank 2 BBB	Bank 2 Baa3	Bank 2 BBB	Bank 2 BBB (low)
	BB+	Ba1	BB+	BB (high)
t	BB	Ba2	BB	BB
n e m	BB	Bank 5 Ba3	BB	Bank 5 BB (low)
st e d	B+	Bank 4 B1	Bank 4 B+	Bank 4 B (high)
e a v r n	B	B2	B	B
g I - n	B	B3	B	B (low)
o N	CCC+	Caa1	CCC+	CCC (high)
	CCC	Caa2	CCC	CCC

Moody's (26 May 23) upgraded BPI and its senior debt to Baa1, with a Stable outlook. Reaffirmed its A3 deposit rating, with a Positive outlook.

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

DBRS (4 Jul.23) upgraded BPI's mortgage covered bond rating to AA.

INCOME STATEMENT OF THE ACTIVITY IN PORTUGAL

In M €	Sep 22	Sep 23	%
	restated 1
interest income Net	373 5	688 4	84%
Dividend income	4 0	2 0	-
accounted Equity income	20 7	15 2	-27%
fee and Net commission income	219 1	218 4	0 %
Gains/(losses) financial and liabilities and other assets on	27 9	18 7	-33%
Other and operating income expenses	-43 1	-40 6	6 %
Gross income	602 1	902 0	50%
Staff expenses	-172 0	-183 9	% 7
Other administrative expenses	-112 9	-139 0	23%
and Depreciation amortisation	-49 9	-52 6	5 %
Recurring operating expenses	-334 8	-375 4	12%
Non-recurrent costs	-5 7	-21 2
Operating expenses	-340 5	-396 6	16%
operating income Net	261 6	505 4	93%
Impairment losses and other provisions	-35 5	-46 7	31%
Gains and losses in other assets	0 4	8 9	-
income before income Net tax	226 4	467 6	106%
Income tax	-64 3	-143 5	123%
Net income	162 2	324 1	100%

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.

BALANCE SHEET OF THE ACTIVITY IN PORTUGAL

30

LOAN PORTFOLIO AND CUSTOMER RESOURCES

Gross portfolio in M € ,	Sep 22	Sep 23	YoY	YtD
individuals I Loans to	844 15	16 286	3%	2%
loans Mortgage	023 14	560 14	4%	3%
Other loans individuals to	821 1	726 1	-5%	-4%
companies II Loans to	10 923	156 11	2%	2%
Public III sector	2 176	2 315	6%	4%
Total loans	28 943	29 758	3%	2%
Note:
portfolio of Loan net impairments	28 445	29 225	3%	2%

Loan portfolio					Customer resources
Gross portfolio in € M ,	Sep 22	Sep 23	YoY	YtD	€ In M	Sep 22	Sep 23	YoY	YtD
individuals I Loans to	15 844	16 286	3%	2%	Customer deposits I	30 360	28 398	-6%	-6%
loans Mortgage	14 023	14 560	4%	3%	Off-balance sheet II resources	8 766	8 606	-2%	-1%
Other loans individuals to	1 821	1 726	-5%	-4%	funds Mutual	4 282	4 270	0%	0%
companies II Loans to	10 923	11 156	2%	2%	Capitalisation insurance	214 4	257 4	1%	-1%
Public III sector	2 176	2 315	6%	4%
Total loans	28 943	29 758	3%	2%	Public offerings	270	80	-	-
Note:					Total	39 127	37 004	-5%	-5%
portfolio of Loan net

▪ In addition, the placement of structured products increased by 0.4 Bn.€ in Sep. 23 YoY.

CONSOLIDATED INCOME STATEMENT

32

In M €	Sep 22 restated 1	Sep 23	%
Net interest income	382 7	693 4	81%
Dividend income	91 3	74 5	-18%
accounted Equity income	46 6	8 40	-12%
fee and Net commission income	219 1	218 4	0 %
Gains/(losses) financial and liabilities and other assets on	50 6	-21 1	-142%
Other and operating income expenses	-50 1	-46 5	7 %
Gross income	740 2	959 6	30%
Staff expenses	-177 7	-203 8	15%
Of which: staff Recurrent expenses	-172 0	-183 9	7%
Non-recurrent costs	-5 7	-19 9
Other administrative expenses	-112 9	-140 2	24%
and Depreciation amortisation	-49 9	-52 6	% 5
Operating expenses	-340 5	-396 6	16%
Net operating income	399 7	563 0	41%
losses and other Impairment provisions	-35 5	0 -47	32%
and losses other Gains in assets	0 4	8 9	-
income before income Net tax	364 6	524 9	44%
Income tax	-75 2	-134 4	79%
Net income	289 4	390 4	35%

CONSOLIDATED BALANCE SHEET

In M.€	Dec 22 restated 1	Sep 23
ASSETS
Cash and cash balances central banks and other demand deposits at	2 466 ,	2 167 ,
Financial held for trading fair value through profit or loss and fair assets , at at value through other comprehensive income	1 613 ,	1 510 ,
Financial amortised assets at cost	33 753 ,	35 164 ,
Of which: Loans Customers to	28 630 ,	29 225 ,
and Investments in joint ventures associates	278	206
Tangible assets	198	177
Intangible assets	108	101
Tax assets	184	178
and disposal groups classified as held for sale Non-current assets	26	14
Other assets	288	232
Total assets	38,914	39,750
LIABILITIES
for Financial liabilities held trading	87	79
Financial liabilities amortised at cost	34 436 ,	35 113 ,
Deposits - Central Banks and Credit Institutions	1 494 ,	2 288 ,
Deposits - Customers	30 326 ,	29 498 ,
Debt securities issued	2 339 ,	3 093 ,
Of which: subordinated liabilities	431	427
Other financial liabilities	276	234
Provisions	49	48
liabilities Tax	125	208
Other liabilities	343	455
Total Liabilities	35,040	35,904
Shareholders' equity attributable the shareholders of BPI to	3 874 ,	3 847 ,
controlling Non interests	0	0
Total Shareholders' equity	3,874	3,847
Total liabilities and Shareholders' equity	38,914	39,750

CONSOLIDATED INDICATORS

Profitability Efficiency and Liquidity Indicators , (Bank of Portugal no. 16/2004 with the amendments of 6/2018) Instruction Instruction	1) Sep 22	Sep 23
Gross income / ATA	2 3%	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 income interests tax to shareholders' equity (including non-controlling interests) average	12 8%	18 3%
income 2 ) Staff / Gross expenses	23 2%	19 2%
income 2 ) / Operating Gross expenses	2% 45	39 1%
(net) deposits ratio Loans to	94%	103%
ratio and forborne NPE (according the EBA criteria) to	Sep 22	Sep 23
Non-performing (M €) - NPE exposures	576	569
NPE ratio	1 4%	1 5%
by NPE impairments coverage	90%	96%
by and collaterals NPE impairments coverage	153%	158%
NPE 3) of forborne Ratio included in not	0 3%	1 3%
"Crédito duvidoso" (non-performing loans) (according Bank of criteria) to Spain	Sep 22	Sep 23
€) 4) "Crédito duvidoso" (M	621	556
"Crédito duvidoso" ratio	2 0%	1 7%
"Crédito duvidoso" by impairments coverage	84%	99%
"Crédito duvidoso" by impairments and collaterals coverage	142%	159%

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.

34 3) Forborne according to EBA criteria. On September 2023, the forborne was 786 M.€ (forborne ratio of 1.9%), of which 545 M.€ was performing loans (1.3% of the gross credit exposure) and 241 M.€ was included in NPE (0.6% of the gross credit exposure).

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

Profit & loss account
	As		BPI	Business segment
Sep 23 (M.€)	Adjustments 1) reported by BPI		contribution to CABK Group	BPI	Corporate Center
Net interest income	693	( 3)	691	679	12
Dividends	75	0	75	2	73
accounted Equity income	41	( 0)	41	15	26
fees and Net commissions	218	0	218	218
Trading income	( 21)	3	( 18)	21	( 40)
Other operating income & expenses	( 46)	2	( 45)	( 39)	( 6)
Gross income	960	2	962	897	65
Operating expenses	( 375)	( 7)	( 382)	( 382)
Extraordinary operating expenses	( 21)	21
Pre-impairment income	563	17	580	515	65
[Pre-impairment income without extraordinary expenses]	584	( 5)	580	515	65
losses on financial Impairment assets	( 46)	0	( 45)	( 45)
Other impairments and provisions	( 1)	( 19)	( 20)	( 20)
Gains/losses on disposals & others	9	( 9)	( 0)	( 0)	( 0)
income Pre-tax	525	( 11)	513	448	65
Income tax	( 134)	1	( 134)	( 140)	7
Profit for the period	390	( 11)	380	308	72
Minority interests & other
income Net	390	( 11)	380	308	72

Loan portfolio & customer resources

September 2023 (M.€)	As reported by BPI	Adjustments	BPI contribution to CABK Group (BPI segment)
Loans and advances to customers, net	29 225	( 86)	29 139
Total customer funds	37 004	(4 219)	32 785

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, by the fair value adjustments generated by the business combination at 30 September 2023 and consolidation adjustments (elimination of intra-group balances);
• In total customer funds, by the liabilities under insurance contracts and their fair value adjustments at 30 September 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.

1) Consolidation, standardisation and net fair value adjustments in the business combination.

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	Sep 23	Sep 23	Structure presented in the financial and respective statements notes
Net interest income	693.4	693.4	Net interest income
Dividend income	74.5	74.5	Dividend income
accounted Equity income	40.8	40.8	Share of the profit or (-) loss of subsidiaries, and accounted for the method investments in joint ventures associates using equity
Net fee and commission income	218.4	239.4	Fee and commission income
		-21.0	and Fee commission expenses
Gains/(losses) on financial and liabilities and assets	-21.1	-0.2	Gains or (-) losses on derecognition of financial and liabilities measured fair value through profit or loss, assets not at net
other		6.3	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
		4.3	or (-) losses from hedge Gains accounting, net
		-29.8	Exchange differences [gain or (-) loss], net
Other and operating income expenses	-46.5	12.6	Other operating income
		-59.0	Other operating expenses
income Gross	959.6	959.6	GROSS INCOME
Staff expenses	-203.8	-203.8	Staff expenses
Other administrative expenses	-140.2	-140.2	Other administrative expenses
and Depreciation amortisation	-52.6	-52.6	Depreciation
Operating expenses	-396.6	-396.6	Administrative expenses and depreciation
operating income Net	563.0	563.0
Impairment losses and other provisions	-47.0	-1.6	Provisions or (-) reversal of provisions
		-45.4	or (-) reversal of on financial measured fair value through profit or loss Impairment impairment assets not at
Gains and losses in other assets	8.9	-1.6	Impairment or (-) reversal of impairment of investments in subsidiaries, joint and associates ventures
			or (-) reversal of on non-financial Impairment impairment assets
		0.1	Gains or (-) losses on derecognition of non financial assets, net
		1.9	Profit or (-) loss from and disposal groups classified as held for sale qualifying as discontinued operations non-current assets not
Net income before income tax	524.9	524.9	PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS
Income tax	-134.4	-134.4	related profit or loss from Tax expense or income to continuing operations
Net income from continuing operations	390.4	390.4	PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS
from discontinued Net income operations			Profit or (-) loss after from discontinued tax operations
Income attributable non-controlling interests to			Profit or (-) loss for the period attributable non-controlling interests to
income Net	390.4	390.4	(-) 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 / Gross income
Cost-to-core income ratio (core efficiency ratio)1)	[Operating expenses, excluding costs with early-retirements and voluntary terminations and (only in 2016) gains with the revision of the Collective Labour Agreement (ACT) – 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 resources2)	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 resources3)	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 insurance4) = Third-party capitalisation insurance placed with Customers ▪ Pension plans4) = 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.

38 3) 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.

²⁾ 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.

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

39

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