Banco Comercial Portugues

Investor Presentation • Jul 28, 2023

CONSOLIDATED RESULTS

1H23 BANCO BPI CONSOLIDATED RESULTS

28 JULY 2023

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 1ST HALF 2023

▪ Support to Families and Businesses: loans grow by 4% yoy

▪ Financial strength: CET1 ratio of 14.3% and total capital ratio of 18.2%

▪ Low risk: NPE of 1.6%, with 150% coverage

▪ Efficiency improves to 43.6% and stable cost of credit risk (0.23%)

▪ 199 M.€ net profit in Portugal (+130% yoy) and 256 M.€ consolidated net profit (+26% yoy)

BPI RESULTS

1st half 2023

Commercial activity in Portugal	Loans  YoY +1.1 Bn.€ +4%	Deposits YoY  -1.3 Bn.€ -4% Total Customer resources -4%	 YoY Gross +52% income +85% Net interest income +2% Fee and commission income	Digital Banking Regular users 903 th. BPI app users +112 th. YoY 
Risk, liquidity and capitalisation	NPE ratio 1.6% (EBA criteria) 150% Coverage (by impairments and collaterals)	Cost of Risk 0.23% (as % of loans and guarantees; last 12 months)	Loan to deposit ratio 100% (loans as % of deposits)	14.3% CET1 15.8% T1 18.2% Total (Phasing-in)
Profit and profitability	Net profit in Portugal YoY  199 M.€ +130%	Recurrent ROTE in Portugal 11.6% (last 12 months)	Cost-to-core income in Portugal 43.6% (last 12 months)	Consolidated net profit  YoY 256 M.€ +26%

CONSOLIDATED NET PROFIT OF 256 M.€ IN 1H23 (+26%)

Recurrent net profit in Portugal increases 119%

▪ Increase in income underpinned by commercial activity growth and rise in market interest rates

▪ Stable cost of risk

• Increase in costs incorporates the effects of inflation and the acceleration of investment in new technology projects
• 87 190 +197 -28 -10 -57 Jun22 Jun23 Commercial banking gross income Net loan impairments Income tax and other Recurrent costs Recurrent ROTE (last 12 months) 6.5% Jun.22 11.6% Jun.23 M.€

COMMERCIAL BANKING GROSS INCOME INCREASED 50%

Gross income in the activity in Portugal				Net interest income increased 85%
				Higher market interest rates
€ In M	1) % Jun 22 Jun 23		Growth in loan volume
				Increase in the cost of deposits
Net interest income	235	435	85%	Cost of MREL / covered bond issues
Dividends and equity accounted income	17	12	-29%	End of interest rate bonus on ECB funding (TLTRO) at the end of June 2022
fee and Net commission income	145	147	2%	Net fee and commission income grew 2%
COMMERCIAL GROSS INCOME BANKING	396	594	50%	# Accounts
(net) 2 Other income	( 25)	( 27)	-11%	Loan volume
				Corporate debt issues
income Gross	372	566	52%	Mutual funds and capitalisation insurance
				Insurance brokerage

6

2) Gains/(losses) on financial assets & liabilities and Other operating income and expenses. Includes regulatory costs of 48.3 M.€ in 1H22 and 41.5 M.€ in 1H23 with banking sector contribution, additional solidarity levy and contributions to the Single Resolution Fund and National Resolution Fund.

LOAN PORTFOLIO GREW 4% YoY

MARKET SHARE GAINS IN MORTGAGE LOANS

MARKET SHARE GAINS IN CORPORATE LOANS

CUSTOMER RESOURCES DECREASED 4% YoY

Customer Resources Market shares

10

In Bn.€	1) Jun 22	Jun 23	YoY	YtD
I. Customer deposits	30.0	28.6	-4%	-6%
II. Off-balance sheet resources	9.2	8.8	-5%	2%
Mutual funds	4.4	4.3	-2%	2%
Capitalisation insurance	4.4	4.4	1%	2%
Public offerings	0.5	0.1	-	-
Total	39.2	37.5	-4%	-4%

▪ In addition, the placement of structured products increased by 0.5 Bn.€ in June 23 YoY.

	May 23	YoY 
resources 2 Customer	11 2%	-0 1 p.p.
Deposits	10 7%	-0 2 p.p.
Mutual funds	11 5%	+0 4 p.p.
Capitalisation insurance	18 7%	+0 1 p.p.
plans Retirement savings	11 7%	+0 1 p.p.

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

-6 YtD 2)

-9 YtD 2)

1) Restated for adoption on IFRS17. 2) Adjusted for the sale of BPI Suisse.

3) Distribution network: 272 branches, 12 Premier centres, 4 Private Banking and Wealth centres, 1 mobile branch, and 29 corporate and institutional banking centres.

REGULATORY COSTS OF 41.5 M.€ IN 2023

LOW RISK PROFILE AND HIGH COVERAGE

CREDIT RENEGOTIATION

ADEQUATELY COVERED PENSIONS

Employee pension liabilities

M €	22 Dec	23 Jun
Total liability past service	1 514	1 555
funds Pension net assets	1 714	1 757
Level of of pension liabilities coverage	113%	113%
fund (YTD , non-annualised) Pension return	-8 7%	5% 4
Discount rate	3 8%	3 6%

HIGH CAPITALISATION

BALANCED FUNDING AND COMFORTABLE LIQUIDITY

ECB funding of 0.4 Bn.€

17

73%	100%	134%	179% 187% 12-month average 1)	9.9 Bn.€	0.4Bn.€
Deposits	Loans /	NSFR ratio	LCR ratio	Total liquid	30 June 2023
/Total assets	Deposits	Net stable funding ratio	Liquidity coverage ratio	assets 2)	ECB funding

1) 12-month average, in accordance with the EBA guidelines. Average value (previous 12 months) of the calculation components: Liquidity reserves (7 780 M.€); Total net outflows (4 151 M.€). 2) High Quality Liquid Assets (HQLA) of 5.7 Bn.€ and other assets eligible as collateral with ECB of 4.2 Bn.€

A BANK COMMITTED TO SUSTAINABILITY

2022-2024 Sustainability Master Plan

• Signatory of the Principles for Responsible Banking
• Participation in Business & Human Rights Accelerator - UN Global Compact

	2022-2024 TARGET
Global
Sustainable business	4 Bn.€
in Loans ▪ ▪ in Investment	2 Bn.€ 2 Bn.€
Social
Beneficiaries	200 th.
Investment by BPI "la Caixa" Foundation	120 M.€
Governance
Women in management positions1	43%

COMMITMENT TO PEOPLE, SOCIETY AND THE ENVIRONMENT

Commitment to People

Commitment to Society Commitment to the Environment

New initiatives

• 3rd Health and Well-being week + 1,000 participants
• "Health Pools" from "WeGuide Terra dos Sonhos", for Employees with oncological diseases
• 50% increase in study allowance for children between 10th and 12th grades
• Presence in 14 university and recruitment events
• Launch of BPI Summer Experience 2nd Edition for Employees' children
• Launch of 2 new Trainee Academies
• Training: +480 courses held totalling close to 8 000 hours

COMMITMENT TO PEOPLE, SOCIETY AND THE ENVIRONMENT

Commitment to People Commitment to Society

Commitment to the Environment

50 M.€ "la Caixa" Foundation initiative in collaboration with BPI in 2023

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

BPI "la Caixa" Foundation Awards | 4.6 M.€ in 2023

Decentralised Social Initiative| 1.5 M.€ in 2023: 75 projects worth 423 th.€, benefiting 8 898 people (1H23)

Proximity Projects: 1.8 M.€ in the areas of culture and science, social, education and scholarships (1H23)

TUMO Coimbra Centre for Creative Technologies: enrolment opened for 1 500 young people (free educational programme)

World Youth Day: BPI, the 5th national company with the highest number of volunteers

21

COMMITMENT TO PEOPLE, SOCIETY AND THE ENVIRONMENT

Commitment to People Commitment to Society Commitment to the Environment

BPI Volunteering Service Programme

10 756 direct beneficiaries

volunteers

5 254 hours of volunteering service

1st half 2023 data

COMMITMENT TO PEOPLE, SOCIETY AND THE ENVIRONMENT

Reported figures as defined in the Sustainability Plan.

BPI, BANK FOR FAMILIES

Proposals and solutions at every step of your life

BPI, BANK FOR COMPANIES

The partner for all companies at the various stages of their lives

2ND EDITION OF SUSTAINABILITY ACCELERATOR

Monthly delivery of contents to Clients

Exclusive sessions for Customers

• Dynamic workshops to share experiences and knowledge
• Technical support from experts
• 3 events already held: Braga, Azores, Setúbal

> 150 Participants

ECONOMY SUPPORT AWARDS AND ATTRIBUTION OF STATUS

DIGITAL BANKING GAINS MORE RELEVANCE

RECOGNITION IN 1ST HALF 2023

CONSOLIDATED RESULTS

ANNEXES

01 BPI Ratings versus peers

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

03

02

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

04

Alternative Performance Measures

On 23rd July 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	BBB	BBB
	BBB	Bank 2 Baa3	Bank 3 BBB	Bank 2 BBB (low)
	Bank 2 BB+	Ba1	Bank 2 BB+	BB (high)
t n	BB	Ba2	BB	BB
e m	BB	Bank 5 Ba3	BB	Bank 5 BB (low)
st e d e	Bank 4 B+ B1	Bank 4 B+	Bank 4 B (high)
a v r n g	B	B2	B	B
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 €	22 Jun restated 1	23 Jun	%
Net interest income	234 9	434 9	85%
Dividend income	3 9	2 0	-
accounted Equity income	12 8	10 0	-22%
fee Net and commission income	144 6	147 0	2 %
Gains/(losses) financial and liabilities and other assets on	17 5	14 7	-16%
Other and operating income expenses	-42 2	-42 2	0 %
Gross income	371 6	566 3	52%
Staff expenses	-114 7	-122 8	7 %
Other administrative expenses	-75 1	-93 2	24%
and Depreciation amortisation	-32 8	-34 5	% 5
Operating expenses	-222 6	-250 5	13%
operating income Net	149 0	315 8	112%
losses and other Impairment provisions	-29 2	-38 5	32%
Gains and losses in other assets	0 9	10 9	-
income before income Net tax	120 6	288 2	139%
Income tax	-34 1	-89 5	162%
income Net	86 5	198 7	130%

BALANCE SHEET OF THE ACTIVITY IN PORTUGAL

LOAN PORTFOLIO AND CUSTOMER RESOURCES

portfolio in Gross M € ,	Jun 22	Jun 23	YoY	YtD
individuals I Loans to	15 629	16 221	4%	1%
loans Mortgage	13 800	14 444	5%	2%
Other loans individuals to	1 829	1 777	-3%	-1%
companies II Loans to	10 998	11 229	2%	3%
Public III sector	2 077	2 347	13%	5%
Total loans	28 704	29 797	4%	2%
Note:
portfolio of Loan net impairments	28 165	29 237	4%	2%

Loan portfolio					Customer resources
portfolio Gross in M € ,	22 Jun	23 Jun	YoY	YtD	€ In M	Jun 22	Jun 23	YoY
individuals I Loans to	629 15	16 221	4%	1%	Customer deposits I	29 955	28 645	-4%
loans Mortgage	13 800	14 444	5%	2%	Off-balance II sheet resources	9 237	8 805	-5%
Other loans individuals to	829 1	1 777	-3%	-1%	Mutual funds	4 411	342 4	-2%
companies II Loans to	10 998	229 11	2%	3%	insurance	4 359	4 383	1%
Public III sector	2 077	2 347	13%	5%	Capitalisation
Total loans	28 704	29 797	4%	2%	offerings Public	467	80	-
Note:					Total	39 192	37 450	-4%
portfolio of Loan net					In addition, the placement of structured products increased ▪

by 0.5 Bn.€ in June 23 YoY.

CONSOLIDATED INCOME STATEMENT

34

In M €	Jun 22 restated 1	Jun 23	%
Net interest income	241 9	438 6	81%
Dividend income	91 3	74 5	-18%
accounted Equity income	31 5	27 8	-12%
fee Net and commission income	144 6	147 0	2 %
Gains/(losses) financial and liabilities and other assets on	37 0	-26 0	-170%
Other and operating income expenses	-49 2	-48 0	2 %
Gross income	497 1	613 9	23%
Staff expenses	-114 7	8 -122	7 %
Other administrative expenses	-75 1	-93 2	24%
and Depreciation amortisation	-32 8	-34 5	% 5
Operating expenses	-222 6	-250 5	13%
Net operating income	274 5	363 4	32%
losses and other Impairment provisions	-29 2	-39 0	33%
and losses other Gains in assets	0 9	10 9	-
income before income Net tax	246 1	335 2	36%
Income tax	-43 0	-79 1	84%
Net income	203 2	256 2	26%

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 BALANCE SHEET

In M.€	Dec 22 restated 1	Jun 23
ASSETS
Cash and cash balances at central banks and other demand deposits	2 466	2 519
Financial assets held for trading, at fair value through profit or loss and at fair value through other comprehensive income	1 613	1 536
Financial assets at amortised cost	33 753	34 954
Of which: Loans to Customers	28 630	29 237
Investments in joint ventures and associates	278	188
Tangible assets	198	186
Intangible assets	108	102
Tax assets	184	159
Non-current assets and disposal groups classified as held for sale	26	52
Other assets	288	235
Total assets	38 914	39 932
LIABILITIES
Financial liabilities held for trading	87	84
Financial liabilities at amortised cost	34 436	35 391
Deposits - Central Banks and Credit Institutions	1 494	3 055
Deposits - Customers	30 326	29 734
Debt securities issued	2 339	2 344
Of which: subordinated liabilities	431	434
Other financial liabilities	276	259
Provisions	49	49
Tax liabilities	125	155
Other liabilities	343	514
Total Liabilities	35 040	36 193
Shareholders' equity attributable to the shareholders of BPI	3 874	3 739
Non controlling interests	0	0
Total Shareholders' equity	3 874	3 739
Total liabilities and Shareholders' equity	38 914	39 932

CONSOLIDATED INDICATORS

Profitability Efficiency and Liquidity Indicators , (Bank of Portugal Instruction no. 16/2004 with the amendments of Instruction 6/2018)	1) Jun 22	Jun 23
/ Gross income ATA	2 4%	3 2%
before and attributable non-controlling / Net income income tax income to interests ATA	1 2%	1 7%
before and attributable non-controlling / Net income income tax income to interests shareholders' equity (including non-controlling interests) average	13 3%	17 5%
income 2 ) Staff / Gross expenses	23 0%	20 0%
income 2 ) Operating / Gross expenses	7% 44	40 7%
Loans (net) deposits ratio to	94%	102%
ratio and forborne NPE (according the criteria) to EBA	Jun 22	Jun 23
Non-performing (M €) - NPE exposures	669	616
NPE ratio	6% 1	6% 1
by impairments NPE coverage	84%	93%
NPE by impairments and collaterals coverage	145%	150%
NPE 3) of forborne included Ratio in not	0 3%	1 0%
"Crédito duvidoso" (non-performing loans) (according Bank of Spain criteria) to	Jun 22	Jun 23
€) 4) "Crédito duvidoso" (M	708	610
"Crédito duvidoso" ratio	2 3%	9% 1
"Crédito duvidoso" by impairments coverage	79%	94%
"Crédito duvidoso" by impairments and collaterals coverage	136%	150%

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.

36 3) Forborne according to EBA criteria. On June 2023, the forborne was 646 M.€ (forborne ratio of 1.5%), of which 428 M.€ was performing loans (1.0% of the gross credit exposure) and 218 M.€ was included in NPE (0.5% of the gross credit exposure).

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

Profit & loss account

	As		BPI	Business segment
23 (M.€) Jun	reported by BPI	Adjustments 1)	contribution to CABK Group	BPI	Corporate Center
Net interest income	439	( 2)	437	430	7
Dividends	75	0	75	2	73
Equity accounted income	28	0	28	10	18
fees and Net commissions	147	( 0)	147	147
Trading income	( 26)	2	( 24)	17	( 40)
Other operating income & expenses	( 48)	1	( 47)	( 41)	( 6)
Gross income	614	2	615	564	51
Operating expenses	( 251)	( 3)	( 254)	( 254)
Pre-impairment income	363	( 1)	362	311	51
losses on financial Impairment assets	( 37)	( 0)	( 37)	( 37)	( 0)
Other impairments and provisions	( 2)	( 0)	( 2)	( 2)	0
Gains/losses on disposals & others	11	( 9)	2	1	0
income Pre-tax	335	( 11)	324	273	51
Income tax	( 79)	1	( 79)	( 88)	9
Profit for the period	256	( 10)	246	185	60
Minority interests & other
income Net	256	( 10)	246	185	60

Loan portfolio & customer resources

June 2023 (M.€)	reported As by BPI	Adjustments	contribution BPI to (BPI segment) CABK Group
Loans and advances to customers, net	29 237	( 78)	29 159
Total funds customer	37 450	(4 379)	33 071

Profit & loss account

The difference between the earnings released by BPI and the earnings attributable to CaixaBank Group is largely a result of consolidation adjustments and the net change in the fair value adjustments generated 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 June 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 June 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	Jun 23	Jun 23	Structure presented in the financial and respective statements notes
Net interest income	438.6	438.6	Net interest income
Dividend income	74.5	74.5	Dividend income
accounted Equity income	27.8	27.8	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	147.0	161.2	Fee and commission income
		-14.2	and Fee commission expenses
Gains/(losses) on financial and liabilities and assets	-26.0	0.0	Gains or (-) losses on derecognition of financial and liabilities measured fair value through profit or loss, assets not at net
other		5.8	or (-) losses on financial and liabilities held for trading, Gains assets net
		-1.5	Gains or (-) losses on non-trading financial mandatorily fair value through profit or loss, assets at net
		3.6	or (-) losses from hedge Gains accounting, net
		-34.0	Exchange differences [gain or (-) loss], net
Other and operating income expenses	-48.0	8.0	Other operating income
		-56.0	Other operating expenses
income Gross	613.9	613.9	GROSS INCOME
Staff expenses	-122.8	-122.8	Staff expenses
Other administrative expenses	-93.2	-93.2	Other administrative expenses
and Depreciation amortisation	-34.5	-34.5	Depreciation
Operating expenses	-250.5	-250.5	Administrative expenses and depreciation
operating income Net	363.4	363.4
Impairment losses and other provisions	-39.0	-2.1	Provisions or (-) reversal of provisions
		-36.9	or (-) reversal of on financial measured fair value through profit or loss Impairment impairment assets not at
Gains and losses in other assets	10.9	-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
		2.1	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	335.2	335.2	PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS
Income tax	-79.1	-79.1	related profit or loss from Tax expense or income to continuing operations
Net income from continuing operations	256.2	256.2	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	256.2	256.2	(-) PROFIT OR LOSS FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF THE PARENT

EARNINGS, EFFICIENCY AND PROFITABILITY INDICATORS The following earnings, efficiency and profitability indicators are defined by reference to the above structure of the profit and loss account used in this document.
Gross income	Net interest income + Dividend income + Net fee and commission income + Equity accounted income + Gains/(losses) on financial assets and liabilities and other + Other operating income and expenses
Commercial banking gross income	Net interest income + Dividend income + Net fee and commission income + Equity accounted income excluding the contribution of stakes in African banks
Operating expenses	Staff expenses + Other administrative expenses + Depreciation and amortisation
Net operating income	Gross income – Operating expenses
Net income before income tax	Net operating income – Impairment losses and other provisions + Gains and losses in other assets
Cost-to-income ratio (efficiency ratio) 1)	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.

(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.

(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. (4) Following the sale of BPI Vida e Pensões in Dec.17, the capitalisation insurance placed with BPI's Customers are recorded off balance sheet, as "third-party capitalisation insurance placed with customers" and pension funds management is excluded from BPI's consolidation perimeter.

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