Banco Comercial Portugues

Investor Presentation • Feb 27, 2023

Disclaimer

l The information in this presentation has been prepared under the scope of the International Financial Reporting Standards ('IFRS') of BCP Group for the purposes of the preparation of the consolidated financial statements under Regulation (CE) 1606/2002, as amended.

l The figures presented do not constitute any form of commitment by BCP in regard to future earnings.

l Figures for 2022 not audited.

l During 2021, BCP Group sold the entire share capital of Banque Privée BCP (Suisse) S.A. and 70% of the share capital of Seguradora Internacional de Moçambique, S.A. ("SIM"). As defined in IFRS 5, the contribution of these entities to the consolidated net income of the Group is reflected as income arising from discontinued operations, and the historical information has been restated since January 2020 to ensure its comparability.

l Due to changes in the accounting policies of Bank Millennium (Poland), the previously published financial statements were restated from 1 January 2020 for comparability.

l In the fourth quarter, the Bank proceeded to the restatement of the amount related to potential costs resulting from credit holidays policy in Poland, enacted in July 2022, previously booked in other impairments and provisions. These costs are now booked in results on modification item. This item also started to include contractual modifications, in accordance with IFRS9, namely those negotiated with customers holding foreign exchange mortgage loans. The 2021 amounts, given its immateriality in this context, were not restated.

l The information in this presentation is for information purposes only, and should be read in conjunction with all other information made public by the BCP Group.

Highlights

Highlights: A Bank prepared for the future

Profitability

• CET1 ratio increase to 12.5% (13.0% on a pro forma¹ basis), through organic generation and other initiatives, including securitizations and non-performing assets reduction. At the end of the year, the CET1 ratio stood above regulatory requirement of 9.41%² and exceeded the 2024 strategic plan target
• Reinforcement of the liquidity position. On-Balance sheet Customer funds up by 8.5% to 77.2 billion reflecting a 4.8 billion increase (9.6%) in Portugal
• Non–performing assets decrease: reduction from December 2021 of 535 million in NPEs, 265 million in foreclosed assets and 376 million in restructuring funds

• Customer base growth of 5.5%, highlighting the increase in mobile Customers, which represent 63% of total Customers

• Net income of 207.5 million, which compares with 138.1 million in 2021 and ROE stood at 4.0%, in spite of the extraordinary effects related with Bank Millennium

  • ➢ Increase of 26.1% in Group's core income and strict management of recurrent operating costs (+3.1%)
  • ➢ The key effects of Bank Millennium were: 525.6 ³ million of costs related with CHF mortgage loan portfolio, cost related with credit holidays of 282.8 ⁴ million, contribution of 59.0 million for the Institutional Protection Scheme (IPS)⁵ and booking of Bank Millennium goodwill impairment of 102.3 million
  • ➢ Mandatory contributions for the banking sector in Portugal of 62.2 million

² Minimum prudential requirements since January 1 st , 2023

⁴ Before taxes and non-controlling interests

¹ Subject to ECB approval for the application of CRR 352 (2) article. Fully implemented ratio including unaudited net income for 2022

³ Includes provisions for legal risk, costs with out-of-court settlements and legal advice (before taxes and non-controlling interests)

⁵ New polish fund aimed to guarantee the stability of the financial system, ensuring the liquidity and solvency of member banks (before taxes and non-controlling interests)

Customer base growth Renowned by digital skills and service quality

A.Our capabilities in digital are widely recognised and recommended

"Best Consumer Digital Bank" in Portugal 2022

"Best Digital Bank"

Unaided reply by Customers² , 2022

App Millennium leads ratings

1 Digital channels satisfaction (NPS), 5 largest banks, Source: BASEF-Marktest

2 Which bank do you choose as the 'Best Digital Bank'? (Unaided reply) | Sample: Banking sector, total number of banking Customers, aged> 15 years - 70 years, Portugal (N 2022 = 2,000 per quarter; 8,000 per year))

3 Banking Sector - Corresponds to the Simple Average of the scores obtained from 6 Banks : NB, BPI, Caixa, Millennium BCP, Santander and Montepio, Brandscore data Awards are the exclusive responsibility of the of the attributing entity

• 7%

2

456

1 Customers definition according to 2024 Strategic Plan

2 Interactions (Millennium website and app), individuals includes AB

3 Includes mobile, online and ATMs, excludes branches and contact center that counts for 0.4% of total transactions

4 Digital sales (Millennium website and app) in number of operations

Net income of 207.5 million in 2022

(Million euros)	2021	2022	YoY
interest income Net	1 588 6 ,	2 149 8 ,	+35 3%
Commissions	727 7	9 771	+6 1%
Core income	2 316 3 ,	2 921 7 ,	+26 1%
1 Operating recurring costs	-1 024 9 ,	-1 056 5 ,	+3 1%
Recurring core operating profit	1 291 4 ,	1 865 1 ,	+44 4%
Operating non-recurring costs	-90 7	-16 5	-81 8%
2 Other income	18 1	-54 2
Of which: regulatory contributions including IPS	-171 7	-209 7	+22 1%
Operating income net	218 8 1 ,	794 1 5 ,	2% +47
3 Results on modification (credit holidays)	-	-309 9	-
and other Impairment provisions	-1 061 1 ,	-1 056 2 ,	-0 5%
Of which: Loans impairment	-348 9	-300 6	-13 8%
4 Of which: legal risk (Poland) on CHF mortgages	-457 2	-393 8	-13 9%
Of which: Bank Millennium goodwill	-	-102 3	-
Net income before income tax	157 7	428 5	+171 6%
Income non-controlling interests and discontinued operations taxes,	-19 7	-221 0
income Net	138 1	207 5	+50 3%
ROE	2 4%	4 0%

¹ 2021: Excludes mainly headcount adjustment costs. 2022: Excludes mainly the compensation for the temporary reduction of remuneration in the period 2014/2017 and measures to mitigate inflation impact. | ² Dividends from equity instruments, other net operating income, net trading income and equity accounted earnings. .| 3 Includes, namely, the result of contract changes from the renegotiation of CHF mortgages loans (previously booked other Income), as well as credit holidays cost booked by Bank Millennium. | ⁴ Does not include provisions for legal risks on CHF mortgages of Euro Bank (guaranteed by Société Générale).

10

Net interest income

Fees and commissions

Other income

¹Net trading income includes -78.3 million in 2021 and -82.0 million in 2022 of costs related to out-of-court settlements with Customers related with CHF loans portfolio. ²Other operating income includes +48.0 million in 2021 and +37.0 million in 2022 related to the compensation for provisions for legal risk on CHF mortgages of Euro Bank (guaranteed by Société Générale). ³Polish fund aimed to guarantee the stability of the financial system, ensuring the liquidity and solvency of member banks.

-0.6 -19.3 1.7

-47.7 -59.0

Operating costs

* 2021: Includes mainly headcount adjustment costs; 2022: Includes mainly compensation for the temporary reduction of remuneration in the period 2014/2017 and measures to mitigate inflation impact.

Cost of risk and provisions

¹ Does not include provisions for legal risk on CHF mortgages of Euro Bank (guaranteed by Société Générale): 37.0 million in 2022 and 48.0 million in 2021.

2 In Q322 a cost of 304.6 million was booked in other provisions related with credit holidays costs booked by Bank Millennium. This cost was reclassified in Q422 to results on modification item, having been reduced to 282.8 million after updating the rate of Customers adherence to moratoria (-21.8 million)

Relevant reduction of NPEs

	Dec 21	Dec 22
NPE total coverage*	120 8%	114 8%
NPE by LLRs coverage	68 0%	68 3%
specific NPE coverage	49 7%	6% 45
days NPL>90 ratio	2 1%	1 3%
NPE ratio (loans only)	4 7%	3 8%
NPE ratio inc . securities and off-BS (EBA)	3 2%	2 6%

*By loan-loss reserves and collaterals.

NPE include loans to Customers only, except if otherwise indicated.

17

Customer funds maintain growth trend

* Deposits, debt securities, assets under management, assets placed with Customers and insurance products (savings and investments). Excl. FX

4.7 8.0 1.9 1.4 23.8 24.5 +3.1% 31.8 33.5 15.9 19.2 1.6 1.3 17.0 14.2 66.3 68.3 2021 2022 +3.0% Total Customers Funds* international operations (Billion euros) Total Customers Funds* Portugal (Billion euros) +9.6%

Loan portfolio

19

NPE include loans to Customers only, except if otherwise indicated.

Group Capital and liquidity

20

Capital above regulatory requirements and suited to the Bank's business model

• Total ratio of 16.8% (17.5% on a pro forma** basis) and CET1 of 12.5% (13.0% on a pro forma** basis). Pro forma subject to the approval for the application of article 352 (2) CRR (Capital Requirements Regulation) that excludes from capital requirements the structural FX positions held to hedge the capital ratios
• Surplus of 3.5pp on a pro forma** basis between the total capital ratio and the SREP requirement not using the capital conservation and the O-SII buffers, and of 7pp on a pro forma** basis if such buffers are used
• Buffers (considering pro forma** ratios) which there are limitations to results distribution: 359bp to CET1, 283bp to T1 and 350bp to total capital

^* Including unaudited net income for 2022.

^** Subject to ECB authorization.

^***Minimum prudential requirements since January 1, 2023. Until December 31, 2022, the requirements were 13.75% and 9.16% for total capital ratio and CET1 ratio, respectively.

CET1 evolution

+1.63% -0.50% -0.35% -0.39% +0.17% +0.31% +0.15% -0.17% -0.05% 12.5% 13.0%* P&L +DTA Dec. 2021 AFS Reserves MAgeas Dividend CHF Provisions Credit Holidays Securiti zations Project Crow Market risk Dec. 2022 +130bp Impacts on the CET1 ratio Other 11.7% article 352 (2) impact +80bp

✓ +163bp recurring capacity of organic capital generation

• Negative Impacts due to extraordinary items from Poland of 50bp resulting from provisions for legal risks associated with CHF loans in Poland and 35bp resulting from provisions for credit holidays
• ✓ CET1 on a pro forma basis, with ~120bp change in the last quarter for which largely contributed:
  • +56bp organic capital generation (excluding CHF impacts)
  • +31bp from securitizations
  • +15bp with the conclusion of project Crow

Stronger capital position

Leverage ratio

(Fully implemented, latest available data)

Leverage ratio in comfortable levels (6.0% as of December 2022) higher when comparing to European banks

RWA density

(RWAs as a % of assets, latest available data)

RWAs density in conservative values (48% as of December 2022), comparing favorably with the values registered by most of the european markets

MREL requirements and execution of the Funding Plan

(Million euros)

• Resolution strategy: MPE (Multi Point of Entry)² . MREL requirements for the Resolution perimeter centred in Portugal
• Preferred Resolution Measure: Bail-in
• No subordination requirements have been applied to the Resolution perimeter centred in Portugal
• As of December 31, 2022, BCP complied with the MREL requirement set for 1 January 2024 in the scope of the 2021 RPC (subject to revision by the SRB)
• Funding Plan execution
  • 500 million SP on 5 February 2021 6NC5
  • 500 million Social SP on 29 September 2021 6.5NC5.5
  • 300 million Subordinated on 10 November 2021 10.5NC5.5
  • 350 million SP on 25 October 2022 3NC2
  • Exchange offer on 5 December 2022 on the Issue of T2 due December 27 (issue of 133.7 million of Subordinated debt 10.25NC5.25)

MREL - Minimum Requirement for own funds and Eligible Liabilities | TREA – Total Risk Exposure Amount; LRE - Leverage Ratio Exposure

¹Requirements covered by the 2021 Resolution Planning Cycle. MREL requirements are subject to periodic review by the SRB and changes in the regulatory framework.

²In addition to the resolution perimeter centered in Portugal, BIM in Mozambique and Bank Millennium in Poland were established as additional groups. With regard to Mozambique, as European rules do not apply, no minimum MREL requirement has been set. With regard to Bank Millennium, the consolidated minimum requirements of MREL - TREA of 20.42% and MREL - TEM of 5.91% were established to meet by December 31, 2023 as reference date. At the individual level, Bank Millennium is obliged to comply with the requirements of 20.32% and 5.91%, respectively. Additionally, there are intermediate objectives of MREL at individual level of - TREA of 15.55% and MREL - TEM of 3.00%, with Bank Millennium still to meet these references due to the net losses recorded in 2021 and 2022 (provisions for the portfolio of mortgage loans indexed to foreign currency and credit moratorium costs), the gap on legal framework for senior non-preference bonds in the Polish market until May 2022, and unfavorable market conditions in the CEE region.

Pension fund

Structure

• Discount rate and projected rate of return revised upwards to 4.17%, mainly reflecting higher market rates recorded in 2022
• Liabilities covered at 121%
• The level of coverage of pension fund liabilities by assets provides room to absorb adverse impacts in the pension fund of up to 593 million with no impact on capital ratios

Robust liquidity position

Portugal

Profitability in Portugal

Net operating revenue

(Million euros)

• Net income of 353.6 million in 2022. On a comparable basis, net income amounted to 364.9 million, an increase of 51.9% compared to 2021
• Net income was driven by stronger net operating revenues, lower recurring operating costs and an improvement on cost of risk

Net interest income

(Million euros)

The interest rates normalization made it possible to eliminate excessive costs of liquidity excess which together with the positive effect of commercial activity and a higher revenue from securities portfolio, originated a net interest income growth of 14.4% (+119.6 million) standing at 951.0 million in 2022 from 831.3 million in 2021.

Commissions and other income

(Million euros) (Million euros)

	2021	2022	YoY
Banking and fees commissions	432 1	472 9	+9 4%
Cards and transfers	111 4	139 5	+25 2%
Loans and guarantees	106 6	99 2	-6 9%
Bancassurance	85 0	84 5	-0 6%
Customer related account	120 5	140 3	+16 5%
Other fees and commissions	8 6	9 2	+7 3%
Market related fees and commissions	82 2	87 7	+6 7%
Securities operations	33 8	36 7	+8 5%
Asset and distribution management	48 4	0 51	5% +5
Total fees and commissions	514 3	560 6	+9 0%

(Milhões de euros) Commissions Other income

Operating costs

Continued decrease of NPEs

NPE build-up

	Dec 22	Sep 22
(Million euros)	Dec 21 vs.	Dec 21 vs.
Opening balance	1 878 ,	1 537 ,
Net outflows/inflows	194	3
Write-offs	-428	-71
Sales	-282	-107
Ending balance	1 361 ,	1 361 ,

• NPEs in Portugal total 1,361 million at end of December 2022, a decrease of 517 million from December 2021
• The decrease from December 2021 results from net inflows of 194 million, write-offs of 428 million and sales of 282 million
• The decrease of NPEs from December 2021 is attributable to a 442 million reduction of NPL>90d
• Cost of risk of 54bp in 2022 (69bp in same period of 2021), with a NPE coverage by loan-loss reserves of 68% and 69%, respectively

NPE coverage

NPL>90d total coverage*

• Total coverage* ≥100%, for both individuals and companies, and for both NPE categories (NPL>90d and other NPE)
• Coverage by loan-loss reserves is stronger in loans to companies, where real-estate collateral, usually more liquid and with a more predictable market value, accounts for a lower coverage than in loans to individuals: coverage by loan-losses was 79% for companies NPE as of December 2022, reaching 186% for companies NPL>90d (81% and 189%, respectively, if cash and LLRs financial collateral are included)

NPE include loans to Customers only. *By loan-loss reserves and collaterals.

Foreclosed assets and corporate restructuring funds

2021 2022

Corporate restructuring funds

(Million euros)

• Net foreclosed assets were down by 59.1% from December 2021. Valuation of foreclosed assets by independent providers exceeded book value by 45%
• 1,541 properties were sold during 2022 (1,677 properties in same period of 2021), with sale values exceeding book value by 30 million
• Significant reduction of restructuring funds with the conclusion of Project Crow

Growing Customer funds and loans to Customers

Performing loans grows in Portugal

• The commitment to families and companies was reaffirmed. Growth of the performing loan portfolio in Portugal (2.1%) mainly supported by the growth of mortgage loans (3,9%)
• Corporate loans with BEI/FEI and mutual guarantees represents 30% of the corporate portfolio
• The Bank maintains a prominent position in the corporate segment:
• ✓ Leadership in PME Leader programme for the 4 th consecutive year with a 31% market share, supporting more than 3,500 companies to achieve this award
• ✓ Leadership in the Inovadora COTEC programme for the 2 nd consecutive year, with 60% market share, supporting more than 380 companies to achieve this award
• ✓ Best Bank for companies; Main Bank for Companies; More innovative Bank; Closest to Customers and with More Adequate Products (Data-E 2022)
• ✓ Leading Bank in Factoring and Confirming, with factoring invoicing of 10.4 billion euros in December 2022 and market share of 26%*
• ✓ Leading Bank in Leasing, with 609 million new leasing business in 2022 and market share of 27%*
• ✓ Leading in the placement of loans with State Guarantees for the 3 rd consecutive year, with 17% of market share, in partnership with Banco Português de Fomento (BPF) and Mutual Guarantee Societies
• ✓ Leadership in the placement of European Investment Fund Guarantees, with the execution of the largest European FEI EGF deal

International operations

Contribution from operations to consolidated net income

(Million euros*)

	2021	2022
Poland	-284.4	-216.7
Mozambique1	95.6	101.9
Other	-15.6	-7.3
Net income international operations	-204.5	-122.1
Discontinued Operations2	77.1	5.5
Non-controlling int. (Poland+Mozambique)	105.2	72.8
Exchange rate effect	-12.6	--
Contribution from international operations	-34.7	-43.8
Bank Millennium goodwill impairment	--	-102.3

*Subsidiaries' net income presented for 2021 at the same exchange rate of 2022 for comparison purposes. ¹ Not including results arising from discontinued operations | 2 Includes the sale of 100% of Banque Privée's capital, in Switzerland, and of 70% of SIM, in Mozambique, by Millennium bim.

Net earnings affected by extraordinary items

¹ FX effect excluded. €/Zloty constant at December 2022 levels: Income Statement 4.68; Balance Sheet 4.68. ² 525.6 million before taxes | ³ 282.8 million before taxes

Net operating revenue

(Million euros¹ )

• Net income of -216.7 million, mainly influenced by costs related to CHF mortgage porfolio² as well as by credit holidays³
• Adjusted net income⁴ up by 99.3% with an adjusted ROE of 21.5%
• In Q422, Bank Millennium's results amounted to +53.2 million, after several quarters with negative results
• Net operating income growth influenced by net interest income increase by 71.8%
• Operating costs increased 11.3% excluding contributions
• Customers funds increase by 4% and decrease of loans to Customers by 2.5%
• CET1 ratio of 11.3% and total capital ratio of 14.4%, above the minimum requirements (8.3% and 12.7% respectively)

Net interest income increase significantly

Commissions and other income

(Million euros*; does not include tax on assets and contribution to the resolution fund and to the DGF)

Credit quality

• Coverage of NPL>90d by loan-loss reserves at 157% (135% as of December 2021)
• Cost of risk of 44bp, compared to 37bp in 2021

*FX effect excluded. €/Zloty constant at December 2022 levels: Income Statement 4.68; Balance Sheet 4.68.

Customers funds and loans to Customers

Customers funds (Million euros*)

Loans to Customers (gross)

(Million euros*)

*FX effect excluded. €/Zloty constant at December 2022 levels: Income Statement 4.68; Balance Sheet 4.68.

CHF mortgages

(Number of cases)

Excludes Euro Bank. | * FX effect excluded. €/Zloty constant at December 2022 levels: Income Statement 4.68; Balance Sheet 4.68. |** Actual outstanding B/S provisions differ from the sum of P&L charges due to FX movements and utilizations among others | *** Out of court settlements mainly booked in net trading income

Net income reflects resilience in challenging environment

Net operating revenue

(Million euros*)

• Net income of 101.9 million in 2022, +6.6% on comparable basis
• Customer funds increased by 10.2%; loans to Customers increased by 2.1%
• Capital ratio of 36.4%

Increased net interest income and commissions

*FX effect excluded. €/Metical constant at December 2022 levels: Income Statement 67.56; Balance Sheet 68.19 **Excludes employees from SIM (insurance company).

Credit quality

• NPL>90d ratio of 8.2% as of December 2022, with coverage by loan-loss reserves of 98% on the same date
• Cost of risk of 118bp in 2022 (72bp in 2021)

Business volumes

Loans to Customers (gross)

(Million euros*)

Key figures

Strategic Plan: Excelling 24

	2022		2024
C/I ratio	37%	✓	≈40%
Cost of risk	52 bp	✓	≈50 bp
RoE	4.0%		≈10%
CET1 ratio	12.5% (13.0% pro forma*)	✓	>12.5%
NPE ratio	3.8%	✓	≈4%
Share of mobile Customers	63%	✓	>65%
Growth of high engagement Customers** (vs 2020)	+10%	✓	+12%
Average ESG rating***	69%		>80%

Subject to ECB authorization for the approval for the application of article 352 (2) CRR (Capital Requirements Regulation) that excludes from capital requirements the structural FX positions held to hedge the capital ratios.

**Active Customers with card transactions in the previous 90 days or funds > €100 (>MZM 1,000 in Mozambique) | ***Average of Top 3 indices (DJSI, CDP and MSCI) | NPE include loans to Customers only.

On track ✓Concluded Almost concluded ✓

Millennium bcp Foundation Society Sustainability

Drawing Room – 5th edition: exhibition dedicated to contemporary drawing held between October 27th and 30th. It was attended by 26 national and international galleries and received more than 7,000 visitors.

Estudo "Património Cultural em Portugal: Avaliação do Valor Económico e Social" Museu Nacional de Arte Antiga: Restoration of Jesus Christ Lamentation Relief Sculpture - Project for the study, conservation and restoration of sixteenth-century reliefs. Visitors can watch the restoration work live.

Folio – Óbidos International Literary Festival 2022: Under the theme "Power", it carried out 200 initiatives and presented 300 authors, highlighting the presence of the two Nobel Prize winners for Literature Olga Tokarczuk and Wole Soyinka. It had around 60,000 visitors.

Rui Osório de Castro/Millennium bcp Award – 7th edition: Annual award aimed at developing scientific research projects in the area of Pediatric Oncology.

Millennium bcp signs the "Pact for More and Better Jobs for Young People", which aims to bring real change in the current context of vulnerability associated with youth employment.

Millennium bcp volunteers, once again present at the "Banco Alimentar", join at national level in the food gathering campaign carried out in November for the most disadvantaged.

Millennium bcp installs the second photovoltaic plant in Taguspark and doubles the autonomous production capacity of electricity from renewable sources.

Millennium bcp signs the Manifest "Towards COP27" of BCSD Portugal, underlining the contribution of this United Nations conference to the global effort to mitigate/adapt to climate change.

Group BCP integrates, for the 4th year in a row, the Bloomberg Gender-Equality Index 2023, remaining in the restricted group of companies that stand out worldwide in the implementation of gender inclusion and gender equality policies.

Millennium bcp signs the Manifest "For an Agreement for Nature at COP15" by BCSD Portugal, highlighting the importance of adopting a Global Strategy for Biodiversity that stops the loss of biodiversity by 2030 and promotes the recovery of natural ecosystems.

Awards in 2022

Millennium bcp: Best Homebanking site

Millennium bcp: Best Digital Bank 2022 in Portugal

Millennium bcp: Best Foreign Exchange Provider in Portugal

Millennium bcp: Best Investment Banking 2022 in Portugal

Millennium bcp: Number 1 Bank of Innovative Companies supporting 363 companies to achieve the COTEC Innovative award

Millennium bcp: Distinguished in the category of Fastest Process in the third edition of the Mortgage Barometer of ComparaJá.pt.

ActivoBank : Distinguished as Powerful Brand in the "Online Banking" category, in recognition of the progress in the areas of Sustainability and Technological Innovation

Bank Millennium: Winner of the "Friendly Banking" edition by Newsweek, first position in the "Remote Banking" category

Bank Millennium: Best Bank in Poland

Bank Millennium: Contact Center employees awarded at the Polish Contact Centre Awards 2022

Bank Millennium : Millenet internet banking on the top of the BANK monthly ranking

Leaf Award for Corporate Social Responsibility

: Distinguish with the CSR Golden

Bank Millennium: Second place in the Forbes ranking "Poland's Best Employers 2022", in the Banking and Financial Services category

Millennium bim: Once again recognized by the international financial magazine "The Banker" as a

Bank Millennium : 1 st place in the Summary of macroeconomic forecasts for 2021 , by the Refinitiv ranking

reference institution in Mozambique

Bank Millennium

Practices

Euromoney

Bank in Mozambique

Millennium bim: Best Trade Finance Bank Bank in Mozambique

Millennium bim: Best Foreign Exchange Provider

Millennium bim: Bank of the year in Mozambique by

– Awards for Excellence & Market Leaders

Millennium bim: Best Private Bank Bank in Mozambique

Millennium bcp

Consumer Choice 2023, "Large Banks" category for 3rd consecutive year

new

ActivoBank Consumer Choice 2023, "Digital Bank" category, for 5th time

Millennium bcp

Best Digital Transformation Project; Best Banking Project; Best Future of Business Models Project

Millennium bcp Big Banks category winner

App Millennium "2022 Product of the Year", on "Banking App" category, by the Product of the Year Portugal

Millennium bcp Main Bank for companies in the DATA E 2022

51

Appendix

52

Sovereign debt portfolio

(Consolidated, million euros)

	Dec. 21	Mar. 22	Jun. 22	Sep. 22	Dec. 22	YoY	QoQ
Portugal	8,013	8,561	7,765	6,882	6,295	-21%	-9%
T-bills and other	426	849	1,222	461	310	-27%	-33%
Bonds	7,587	7,712	6,543	6,421	5,985	-21%	-7%
Poland	3,844	3,908	4,030	3,185	3,320	-14%	+4%
Mozambique	412	424	408	464	526	+28%	+13%
Other	5,435	3,689	5,451	5,897	6,390	+18%	+8%
Total	17,704	16,582	17,653	16,427	16,531	-7%	+1%

Sovereign debt portfolio Sovereign debt maturity

✓ The sovereign debt portfolio totalled 16.5 billion, 14.2 billion of which maturing in more than 2 years

✓ The Portuguese sovereign debt portfolio totalled 6.3 billion, the Polish portfolio totalled 3.3 billion, the French 2.8 billion, "other" includes sovereign debt from Spain (2.2 billion), Belgium (0.8 billion), Mozambique (0.5 billion), Ireland (0.5 billion) and Germany (0.1 billion)

Sovereign debt portfolio

(Million euros)

	Portugal	Poland	Mozambique	Other	Total
Trading book	330	5	0	4	339
1 ≤ year	310	1	0	0	311
1 and 2 > year ≤ years	6	1	0	0	7
2 and 5 > years ≤ years	7	2	0	0	9
5 and 8 > years ≤ years	5	0	0	0	5
8 and 10 years years > ≤	2	1	0	3	6
10 > years	1	0	0	0	1
Banking book*	5 965 ,	3 315 ,	526	6 386 ,	16 192 ,
1 ≤ year	8	900	62	210	1 181 ,
and 2 1 > year ≤ years	28	579	136	130	873
2 and 5 > years ≤ years	3 996 ,	1 585 ,	257	141	5 980 ,
5 and 8 > years ≤ years	494 1 ,	163	0	641 4 ,	6 298 ,
8 and 10 > years ≤ years	211	87	71	264 1 ,	633 1 ,
10 > years	227	0	0	0	227
Total	6 295 ,	3 320 ,	526	6 390 ,	16 531 ,
1 ≤ year	318	901	62	210	1 491 ,
1 and 2 > year ≤ years	35	580	136	130	880
2 and 5 years years > ≤	4 003 ,	1 588 ,	257	141	5 989 ,
and 5 8 years years > ≤	1 499 ,	164	0	4 641 ,	6 303 ,
and 8 10 years years > ≤	213	88	71	1 267 ,	1 639 ,
10 years >	228	0	0	0	229

*Includes financial assets at fair value through other comprehensive income (5,366 million) and financial assets at amortized cost (10,826 million).

Diversified and collateralised portfolio

Loan portfolio

▪ Loans to companies accounted for 41% of the loan portfolio as of December 2022, including 6% of construction and real-estate sectors

• Mortgage accounted for 49% of the loan portfolio, with low delinquency levels and an average LTV of 60%
• 86% of the loan portfolio is collateralised

Consolidated net income

(Million euros)	2021	2022	YoY	Impact on earnings
Net interest income	1 588 6 ,	2 149 8 ,	+35 3%	+561 2
Net fees and commissions	727 7	771 9	+6 1%	+44 2
Other income*	18 1	-54 2	-399 7%	-72 3
Net operating revenue	2 334 4 ,	2 867 5 ,	+22 8%	+533 1
Staff costs	-654 3	-580 8	-11 2%	+73 5
Other administrative and depreciation costs	-461 3	-492 2	+6 7%	-30 9
Operating costs	6 -1 115 ,	-1 073 0 ,	-3 8%	6 +42
Profit before impairment and provisions	218 8 1 ,	794 1 5 ,	2% +47	+575 7
Results modification on		-309 9		-309 9
of Loans impairment (net recoveries)	-348 9	-300 6	-13 8%	+48 3
Other impairment and provisions	-712 2	6 -755	+6 1%	-43 4
Results of modification Impairment and provisions ,	-1 061 1 ,	-1 366 0 ,	+28 7%	-305 0
income before income Net tax	157 7	428 5	+171 6%	+270 7
Income taxes	-203 6	-304 3	+49 5%	-100 7
Net income from discontinued be discontinued operations to or	70 9	5 5	-92 2%	-65 3
Non-controlling interests	113 1	77 8	-31 2%	-35 3
Net income	138 1	207 5	+50 3%	+69 4

*Includes dividends from equity instruments, other net operating income, net trading income and equity accounted earnings

Consolidated balance sheet

(Million euros)

	31 December	31 December
	2022	2021
ASSETS
Cash and deposits at Central Banks	6,022.0	7,796.3
Loans and advances to credit institutions repayable on demand	213.5	361.8
Financial assets at amortised cost
Loans and advances to credit institutions	963.4	453.2
Loans and advances to customers	54,675.8	54,972.4
Debt instruments	13,035.6	8,205.2
Financial assets at fair value through profit or loss
Financial assets held for trading	766.6	931.5
Financial assets not held for trading mandatorily at fair value through profit or loss	552.7	990.9
Financial assets designated at fair value through profit or loss	-	-
Financial assets at fair value through other comprehensive income	7,461.6	12,891.0
Hedging derivatives	59.7	109.1
Investments in associated companies	298.7	462.3
Non-current assets held for sale	499.0	780.5
Investment property	15.2	2.9
Other tangible assets	574.7	600.7
Goodwill and intangible assets	182.7	256.2
Current tax assets	17.9	17.3
Deferred tax assets	2,939.0	2,688.2
Other assets	1,582.5	1,385.3
TOTAL ASSETS	89,860.5	92,904.8

	31 December 2022	31 December 2021
LIABILITIES
Financial liabilities at amortised cost
Resources from credit institutions	1,468.4	8,896.1
Resources from customers	75,430.1	69,560.2
Non subordinated debt securities issued	1,482.1	2,188.4
Subordinated debt	1,333.1	1,394.8
Financial liabilities at fair value through profit or loss
Financial liabilities held for trading	241.5	231.2
Financial liabilities at fair value through profit or loss	1,817.7	1,581.8
Hedging derivatives	178.0	377.2
Provisions	561.8	458.7
Current tax liabilities	23.7	20.4
Deferred tax liabilities	11.7	16.9
Other liabilities	1,392.0	1,117.0
TOTAL LIABILITIES	83,940.0	85,842.8
EQUITY
Share capital	3,000.0	4,725.0
Share premium	16.5	16.5
Other equity instruments	400.0	400.0
Legal and statutory reserves	268.5	259.5
Treasury shares	-	-
Reserves and retained earnings	1,245.9	580.3
Net income for the period attributable to Bank's Shareholders	207.5	138.1
TOTAL EQUITY ATTRIBUTABLE TO BANK'S SHAREHOLDERS	5,138.5	6,119.4
Non-controlling interests	782.1	942.7
TOTAL EQUITY	5,920.6	7,062.1
TOTAL LIABILITIES AND EQUITY	89,860.5	92,904.8

Consolidated income statement per quarter

(Million euros)

	Quarterly
	4Q 21	1Q 22	2Q 22	3Q 22	4Q 22
interest income Net	423 6	465 1	520 1	560 7	603 9
Dividends from equity instruments	0 1	0 9	12 0	-3 6	0 8
Net fees and commission income	192 9	192 8	194 7	186 2	198 1
Other operating income	-9 5	-16 9	-158 5	-1 5	-6 2
trading Net income	15 0	43 4	-1 2	32 7	-25 0
accounted Equity earnings	8 14	16 2	16 6	12 2	23 7
Banking income	636 9	701 6	583 7	786 7	795 5
Staff costs	138 1	137 7	146 4	147 7	149 0
Other administrative costs	93 8	82 7	79 9	89 2	101 2
Depreciation	34 4	34 6	34 9	34 4	35 4
Operating costs	266 3	255 0	261 2	271 2	285 6
Profit bef impairment and provisions	370 5	446 6	322 5	515 5	509 9
Results modification on	0 0	-0 8	-1 1	-316 7	8 7
Loans impairment (net of recoveries)	84 9	89 9	89 6	61 7	59 4
Other . and impairm provisions	250 1	164 1	207 8	160 5	223 1
before Net income income tax	35 6	191 8	24 1	-23 4	236 1
Income tax	62 2	85 5	70 3	52 9	95 7
Net income (before disc . oper.)	-26 6	106 3	-46 2	-76 3	140 4
from discont Net income arising . operations	61 3	1 4	0 1	0 0	4 1
Non-controlling interests	-43 8	-5 2	-7 8	-99 0	34 1
Net income	78 6	112 9	-38 4	22 7	110 3

Income statement

(Million euros)

For the 12-month periods ended December 31th, 2021 and 2022

							Internatio nal o peratio ns
	Gro up			P o rtugal			T o tal			B ank M illennium (P o land)			M illennium bim (M o z.)			Other int. o peratio ns
	D ec 2 1	D ec 2 2	Δ %	D ec 2 1	D ec 2 2	Δ %	D ec 2 1	D ec 2 2	Δ %	D ec 2 1	D ec 2 2	Δ %	D ec 2 1	D ec 2 2	Δ %	D ec 2 1	D ec 2 2	Δ %
Interest income	1,709	2,737	60.2%	861	1,078	25.2%	848	1,659	95.7%	623	1,364	>100%	222	295	32.7%	3	1	-68.6%
Interest expense	121	587	>100%	30	127	>100%	91	461	>100%	28	368	>100%	63	92	47.7%	0	0	-86.0%
N et interest inco me	1,589	2,150	35.3%	831	951	14.4%	757	1,199	58.3%	595	996	67.4%	159	202	26.8%	3	1	-68.6%
Dividends from equity instruments	1	10	>100%	0	9	>100%	1	1	-1.7%	1	1	-1.7%	0	0	--	0	0	--
Intermediatio n margin	1,590	2,160	35.9%	831	960	15.5%	758	1,200	58.2%	596	996	67.3%	159	202	26.8%	3	1	-68.6%
Net fees and commission income	728	772	6.1%	514	561	9.0%	213	211	-1.0%	182	173	-5.2%	31	39	23.6%	0	0	-17.8%
Other operating income	-126	-183	-44.8%	-66	-76	-15.4%	-60	-107	-77.0%	-62	-109	-76.5%	3	2	-8.5%	-1	0	96.9%
B asic inco me	2,191	2,749	25.5%	1,280	1,445	12.9%	911	1,304	43.1%	716	1,060	48.1%	193	243	25.8%	2	1	-52.0%
Net trading income	87	50	-42.3%	76	69	-8.4%	11	-19	<-100%	-6	-40	<-100%	17	21	22.9%	0	0	>100%
Equity accounted earnings	57	69	20.7%	58	68	16.3%	-1	1	>100%	0	0	--	0	2	--	-1	-1	33.6%
B anking inco me	2,334	2,868	22.8%	1,414	1,582	11.9%	921	1,286	39.7%	710	1,020	43.7%	210	266	26.5%	1	0	-89.3%
Staff costs	654	581	-11.2%	436	339	-22.4%	218	242	11.1%	179	194	8.8%	39	47	21.3%	1	1	31.5%
Other administrative costs	324	353	8.9%	176	184	4.3%	148	169	14.3%	107	118	10.0%	40	51	26.3%	0	0	-37.8%
Depreciation	137	139	1.5%	80	79	-1.5%	57	60	5.8%	44	45	1.0%	13	16	22.6%	0	0	-45.1%
Operating co sts	1,116	1,073	-3.8%	693	602	-13.1%	423	471	11.5%	330	357	8.1%	92	113	23.7%	1	1	-0.2%
P ro fit bef. impairment and pro visio ns	1,219	1,794	47.2%	721	980	35.9%	498	815	63.6%	380	663	74.6%	119	153	28.6%	0	- 1	<-100%
Results on modification	0	-310	--	0	0	--	0	-310	--	0	-310	--	0	0	--	0	0	--
Loans impairment (net of recoveries)	349	301	-13.8%	273	218	-20.1%	76	82	8.8%	71	74	3.8%	4	8	93.4%	0	0	>100%
Other impairm. and provisions	712	756	6.1%	165	205	24.1%	547	550	0.6%	528	435	-17.6%	10	7	-31.3%	9	109	>100%
N et inco me befo re inco me tax	158	428	>100%	282	556	97.2%	-124	-128	-2.7%	-219	-156	28.9%	105	138	31.6%	-10	-110	<-100%
Income tax	204	304	49.5%	109	208	90.4%	95	97	2.3%	73	61	-16.4%	22	36	63.9%	0	0	--
N et inco me (befo re disc. o per.)	-46	124	>100%	173	349	>100%	-219	-224	-2.5%	-292	-217	25.8%	8 3	102	23.0%	-10	-110	<-100%
Net income arising from discont. operations	71	6	-92.2%	0	0	--	71	6	-92.2%				13	4	-68.5%
Non-controlling interests	-113	-78	31.2%	0	-5	<-100%	-113	-73	35.7%	0	0	--	1	0	-100.0%	-114	-73	36.0%
N et inco me	138	207	50.3%	173	354	>100%	-35		-146 <-100%	-292	-217	25.8%	9 6	106	10.9%	104	-37	<-100%

Glossary (1/2)

Assets placed with Customerss – amounts held by Customers in the context of the placement of third-party products that contribute to the recognition of commissions.

Balance sheet customer funds – deposits and other resources from Customers and debt securities placed with Customers.

Business Volumes - corresponds to the sum of total customer funds and loans to Customers (gross).

Commercial gap – loans to Customers (gross) minus on-balance sheet customer funds.

Core income - net interest income plus net fees and commissions income.

Core net income - net interest income plus net fees and commissions income deducted from operating costs.

Cost of risk, net (expressed in basis points) - ratio of loans impairment (P&L) accounted in the period to loans to Customers at amortized cost and debt instruments at amortized cost related to credit operations before impairment at the end of the period.

Cost to core income - operating costs divided by core income.

Cost to income – operating costs divided by net operating revenues.

Coverage of non-performing exposures by impairments – loans impairments (balance sheet) divided by the stock of NPE.

Coverage of non-performing loans by impairments – loans impairments (balance sheet) divided by the stock of NPL.

Coverage of overdue loans by impairments - loans impairments (balance sheet) divided by overdue loans.

Coverage of overdue loans by more than 90 days by impairments - loans impairments (balance sheet) divided by overdue loans by more than 90 days.

Debt instruments – non-subordinated debt instruments at amortized cost and financial liabilities measured at fair value through profit or loss (debt securities and certificates).

Debt securities placed with Customers - debt securities issued by the Bank and placed with Customers.

Deposits and other resources from Customers – resources from Customers at amortized cost and customer deposits at fair value through profit or loss.

Dividends from equity instruments - dividends received from investments classified as financial assets at fair value through other comprehensive income and from financial assets held for trading.

Equity accounted earnings - results appropriated by the Group related to the consolidation of entities where, despite having some influence, the Group does not control the financial and operational policies.

Insurance products – includes unit linked saving products and retirement saving plans ("PPR", "PPE" and "PPR/E").

Loans impairment (balance sheet) – balance sheet impairment related to loans to Customers at amortized cost, balance sheet impairment associated with debt instruments at amortized cost related to credit operations and fair value adjustments related to loans to Customers at fair value through profit or loss.

Loans impairment (P&L) – impairment (net of reversals and net of recoveries - principal and accrual) of financial assets at amortized cost for loans to Customers and for debt instruments related to credit operations. Loans to Customers (gross) – loans to Customers at amortized cost before impairment, debt instruments at amortized cost associated to credit operations before impairment and loans to Customers at fair value through profit or loss before fair value adjustments.

Loans to Customers (net) - loans to Customers at amortized cost net of impairment, debt instruments at amortized cost associated to credit operations net of impairment and balance sheet amount of loans to Customers at fair value through profit or loss.

Loan to Deposits ratio (LTD) – loans to Customers (net) divided by deposits and other resources from Customers.

Loan to value ratio (LTV) – mortgage amount divided by the appraised value of property.

Net commissions - net fees and commissions income.

Net interest margin (NIM) - net interest income for the period as a percentage of average interest earning assets.

Net operating revenues - net interest income, dividends from equity instruments, net commissions, net trading income, other net operating income and equity accounted earnings.

Glossary (2/2)

Net trading income – results from financial operations at fair value through profit or loss, results from foreign exchange, results from hedge accounting operations, results from derecognition of financial assets and financial liabilities measured at amortized cost and results from derecognition of financial assets measured at fair value through other comprehensive income.

Non-performing exposures (NPE) – non-performing loans and advances to Customers (loans to Customers at amortized cost and loans to Customers at fair value through profit or loss) more than 90 days past-due or unlikely to be paid without collateral realization, if they recognized as defaulted or impaired.

NPE Specific coverage - NPE impairments (balance sheet) divided by the stock of NPE.

NPE total coverage - Impairments (balance sheet) and NPE collaterals divided by the stock of NPE.

NPE total specific coverage - NPE impairments (balance sheet) and NPE collaterals divided by the stock of NPE.

Non-performing loans (NPL) – overdue loans (loans to Customers at amortized cost and loans to Customers at fair value through profit or loss) more than 90 days past due including the non-overdue remaining principal of loans, i.e. portion in arrears, plus non-overdue remaining principal.

Off-balance sheet customer funds – assets under management, assets placed with Customers and insurance products (savings and investment) subscribed by Customers.

Operating costs - staff costs, other administrative costs and depreciation.

Other impairment and provisions – impairment (net of reversals) for loans and advances of credit institutions classified at amortized cost, impairment for financial assets (classified at fair value through other comprehensive income and at amortized cost not associated with credit operations), impairment for other assets, namely assets received as payment in kind, investments in associated companies and goodwill of subsidiaries and other provisions.

Other net income – dividends from equity instruments, net commissions, net trading income, other net operating income and equity accounted earnings.

Other net operating income – net gains from insurance activity, other operating income/(loss) and gains/(losses) arising from sales of subsidiaries and other assets.

Overdue loans – total outstanding amount of past due loans to Customers (loans to Customers at amortized cost, debt instruments at amortized cost associated to credit operations and loans to Customers at fair value through profit or loss), including principal and interests.

Overdue loans by more than 90 days – total outstanding amount of past due loans to Customers by more than 90 days (loans to Customers at amortized cost, debt instruments at amortized cost associated to credit operations and loans to Customers at fair value through profit or loss), including principal and interests.

Profit before impairment and provisions – net operating revenues deducted from operating costs.

Resources from credit institutions – resources and other financing from Central Banks and resources from other credit institutions.

Return on average assets (Instruction from the Bank of Portugal no. 16/2004) – net income (before tax) divided by the average total assets (weighted average of the average of monthly net assets in the period).

Return on average assets (ROA) – net income (before minority interests) divided by the average total assets (weighted average of the average of monthly net assets in the period).

Return on equity (Instruction from the Bank of Portugal no. 16/2004) – net income (before tax) divided by the average attributable equity + non-controlling interests (weighted average of the average of monthly equity in the period).

Return on equity (ROE) – net income (after minority interests) divided by the average attributable equity, deducted from preference shares and other capital instruments (weighted average of the average of monthly equity in the period).

Securities portfolio - debt instruments at amortized cost not associated with credit operations (net of impairment), financial assets at fair value through profit or loss (excluding the ones related to loans to Customers and trading derivatives), financial assets at fair value through other comprehensive income and assets with repurchase agreement.

Spread - increase (in percentage points) to the index used by the Bank in loans granting or fund raising.

Total customer funds - balance sheet customer funds and off-balance sheet customer fund.

Total customer funds - balance sheet customer funds and off-balance sheet customer funds.

INVESTOR RELATIONS DIVISION Bernardo Collaço, Head

EQUITY Alexandre Moita +351 211 131 321 DEBT AND RATINGS Luís Morais +351 211 131 337

investors@millenniumbcp.pt

62 BANCO COMERCIAL PORTUGUÊS, S.A., a public company (Sociedade Aberta), having its registered office at Praça D. João I, 28, Oporto, registered at the Commercial Registry of Oporto, with the single commercial and tax identification number 501 525 882 and the share capital of EUR 3,000,000,000.00. LEI: JU1U6SODG9YLT7N8ZV32