Banco Comercial Portugues

Quarterly Report • May 6, 2022

1Q 22 BANCO BPI CONSOLIDATED RESULTS

06 May 2022

"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.

BPI IN 1ST QUARTER 2022

Increase in commercial activity, low risk profile and reinforced social commitment

Strong commercial dynamism,

loans grew by +9% YoY and total Customer resources by +8% YoY;

Gross income from commercial activity increased by 4% YoY,

commissions grew significantly (+12%) and net interest income showed resilience;

Stable costs

Investment in modernisation and innovation explain the increase in amortisation and depreciation (+3 M.€);

Focus on digital transformation and Customer experience:

789 thousand digital clients, of which 553 thousand with BPI app (+74 th. YoY)

Strong economic and financial position:

NPE of 1.6% and NPE coverage at 150% Cost of credit risk of 0.07% (non-annualised) CET1 of 13.7% and total capital of 17.5% Investment grade ratings

Commitment to People, Society and

the Environment

Reinforced support to Society, jointly with the "la Caixa" Foundation, with planned investment of 40 M.€ in 2022 (+10 M.€)

Net profit in Portugal of 28 M.€

the comparison with the 1Q 2021 results (54 M.€) is affected by the inclusion in this period of 23 M.€ extraordinary gains on the sale of non-performing loans

Consolidated net profit of 49 M.€

vs 60 M.€ in 1Q 2021

	31 MAR. 2022
Net profit
Consolidated	49 M.€
in Portugal	28 M.€
Commercial activity	(YoY)
Loans	+2.2 Bi.€
Customer Resources	+3.0 Bi.€
Asset quality
NPE	1.6 %
Coverage	150 %
Capitalisation
CET1 ratio	13.7 %
Total ratio	17.5 %

CONSOLIDATED NET PROFIT OF 49 M.€ IN 1ST QUARTER 2022

Net profit in Portugal of 28 M.€

	 YoY
(1)  Commercial Banking Gross Income	+7 M.€
 Change in costs (amortisation and depretiation)	-3 M.€
Loan impairments 	-4 M.€
 Loan recoveries (includes extraordinary gain of 23 M.€ in 1Q.21)	-27 M.€
 Income tax and other	+1 M.€
 YoY net profit in Portugal	-26 M.€

Activity in Portugal
	Mar 21	Mar 22
Recurrent ROTE (last 12 months)	4 7%	5 7%

4

COMMERCIAL BANKING GROSS INCOME INCREASED 4%

5

LOAN PORTFOLIO GREW 9%

Loans to Customers by segments
portfolio in Bi Gross € ,	Mar 21	Mar 22	YoY	YtD
individuals I Loans to	13 9	15 3	10%	2%
loans Mortgage	12 2	13 4	10%	3%
Other loans individuals to	1 7	1 8	5%	1%
companies II Loans to	10 2	10 8	6%	3%
Public III sector	1 9	2 2	14%	2%
Total loans	26 0	28 2	9%	3%
Note: portfolio of Loan net impairments	25 6	27 7	8%	3%

Market share
of total loan portfolio	11.2% +0.5 p.p. YoY
	(Feb. 2022)

MORTGAGE LENDING ORIGINATION INCREASED 48% YoY

TOTAL CUSTOMER RESOURCES INCREASED 8%

Deposits +11% YoY and Assets under management +7% YoY

Customer Resources					Market shares
Bi In €	Mar 21	Mar 22	YoY	YtD
deposits I Customer	26 6	29 7	11%	3%
under II Assets management	9 8	10 5	7%	-4%
Mutual funds	6 5	6 0	7%	-5%
Capitalisation insurance	4 2	4 5	7%	-1%
Public offerings III	1 3	0 6	-57%	-3%
Total	37 7	40 7	8%	1%

	Feb 22	YoY 
resources 1 Customer	5% 11	+0 0 p.p.
Deposits	10 9%	+0 1 p.p.
Mutual funds	10 9%	+0 3 p.p.
Capitalisation insurance	18 6%	+1 4 p.p.
Retirement savings plans	8% 11	+0 5 p.p.

8

OPERATING EXPENSES UNDER CONTROL

COST-TO-CORE INCOME OF 54.1%

Cost-to-core income

(Recurrent operating expenses as % of commercial banking gross income)

REGULATORY COSTS OF 25.1 M€ IN 1ST QUARTER 2022

COST OF CREDIT RISK OF 0.07% YTD

M.€	Mar.21	Mar.22
Impairments	17	21
Loan recoveries	(1) 28	1
Loan impairments net of recoveries	-10	20
On-balance sheet non-allocated impairments: 72 M.€		in Mar.22

Loan impairments net of recoveries

BPI MAINTAINS LOW RISK PROFILE AND INCREASES COVERAGE

	Mar.22
NPL ratio (EBA criteria)	2.0%
Non-Performing Loans (NPL)	640 M.€
NPL coverage by impairments and collaterals	151%
Foreclosed properties (net book value)	4 M.€
Corporate restructuring and recovery funds (book value)	37 M.€

112% PENSION COVERAGE

Employee pension liabilities

M €		Dec 21	Mar 22
Total service liability past		1 887	1 700
funds Pension net assets		1 944	1 907
of of Level pension liabilities coverage		103%	112%
fund Pension return (YTD , non-annualised)		2% 7	3% -1
Discount rate		1 3%	2 0%
Mortality tables	Men:	88/90 TV	- 1 year
	Women:	TV99/01	- 2 years

Actuarial deviations (M €)	1Q 22
from portfolio Income investment	-31
Change in the discount rate	211
Update of the salary table ACT	-33
Actuarial deviations	147

BPI MAINTAINS HIGH CAPITALISATION

15 1) Includes combined capital buffer requirement RWA – Risk Weighted Assets; LRE – Leverage Ratio Exposure.

BALANCED FUNDING AND COMFORTABLE LIQUIDITY

1) 12-month average, in accordance with the EBA guidelines. Average value (previous 12 months) of the calculation components: Liquidity reserves (10 900 M.€); Total net outflows (4 130 M.€).

2) High Quality Liquid Assets (HQLA) of 11.6 Bi.€ and other assets eligible as collateral with ECB of 1.0 Bi.€

16

BPI, A BANK FOR FAMILIES

With proposals and solutions at every step of your life

• Launch of BPI & GO card with Apple Pay service
• Online sale of Personal Accidents insurance

Planos de Poupança BPI
POUPE AO
SEU RITMO.
B Comece a poupar desde $25 \in$ /mes. Escolha o montante, o prazo e a aplicação financeira mais
indicada para si. Faça uma simulação e veja o resultado da sua poupança.	BPI
Saiba mais em bancoboi.pt 0000 BANCO HPL S.A.	Grass - K Catallank

• Development of instant loans:
• for Individual Customers with independent Income
• Extension of term to up to 84 Months

• Sustainability: classification of financial products as Art. 8

• Launch of Valor Negócio + Account

• Extension of Visa Mastercard and contactless to MPOS terminal

Entrepreneur XXI Awards 6th edition in Portugal

More than 100 applications

• Applications assessed by Independent Technical Committee
• 10 finalists shortlisted for final Jury (April)

Dayone Innovation Summit : Delivery of regional awards

The awards distinguish the more innovative and with higher growth potential Portuguese companies that are less than three years old.

• Financial Literacy
• 8 editorials on savings and retirement
• 2 Webinars

BPI, A BANK FOR FAMILIES

Consolidation of the attention model in the individuals and small businesses segment

omnichannel service, with remote personal Account Manager

4 Centres

66 Account Managers followed by more than 1300 BPI

93 thousand Clients

~2.5 Bi.€ business volume

'My Home 2022' Convention dedicated to the Mortgage Credit business

2nd edition

• partners
• awards for BPI best credit intermediaries
• debate on real estate market and credit intermediation current issues

BPI, A BANK FOR COMPANIES

The partner at every step of companies' lives

BPI, A BANK FOR AGRICULTURE AND TOURISM

20

DIGITAL BANKING INCREASINGLY RELEVANT AT BPI

More Clients, more sales with digital contribution, and prominent position

• 1) Core Products by Number: Mutual Funds/RSPs, Prestige Products, Personal Loans, Credit Cards, stand-alone Insurance and Pre-paid cards
• 21 2) Digitally initiated contracting of Term Deposits and Savings, Mutual Funds and RSPs, PLs, PPs, stand-alone Insurance, Credit and Pre-Paid Cards and Cash Advance on Credit Cards

3) BASEF Banks - March 2022 (main banks).

• 4) CSI Banks 2021 CSI Digital Channels Index (main banks).
• 5) Inmark 2022 (Companies and Individual Entrepreneurs with turnover up to 2 M.€); main banks.

INNOVATION IN THE DIGITAL CHANNELS

Enhanced Experience of Individual, Corporate and Small Business Clients

Simplification of Daily Routines

Online account opening for Individual Entrepreneurs/Self-employed, with Digital Mobile Key

My Home

Online simulation and prior decision on mortgage loans for Second Home of Resident Clients

Enjoying Life

Instant Loans now available for Individual Entrepreneurs/Selfemployed

Sleeping Peacefully

100% online contracting of Allianz Personal Accidents Insurance

Looking to the Future

• Launch of new App BPI Broker, with a trading service that is simple, immediate and available anywhere
• Sale of Capitalisation insurance

Digital solutions for Companies

• Loans Digital transformation at BPI Net Empresas:
• New Financing menu
• Request for Current Account Proposal
• Request for Equipment Leasing Proposal
• Enquiry of Loan Requests with ongoing Plan
• Improved customer service: technological advances in platform and infrastructure

Commitment to People Commitment to Society Commitment to the Environment

Diversity and Inclusion Partnership with PWN Lisbon to promote organisational diversity.

Attracting and retaining talent University events.

BPI Voluntary Service Programme

Blood Donation at the Bank's premises in Lisbon and Porto, in collaboration with the Portuguese Blood Institute.

• Association with the "la Caixa" Foundation's Incorpora Programme to support people at risk of social exclusion to get a job opportunity and access to mentoring sessions.
• Financial literacy and entrepreneurship among children and young people in schools. Partnership with JAP – Junior Achievement.

Commitment to People Commitment to Society Commitment to the Environment

"la Caixa" Foundation initiative with the collaboration of BPI

Culture and Science

Education and Scholarships

4.6 M.€ in 2022 (+ 0.6 M.€) 1.4 M.€ in 2022 (+ 0.2 M.€)

4 BPI "la Caixa" Foundation Awards to improve the quality of life of people in situations of social vulnerability.

The Capacitar Awards were the first to open applications. Capacitar supports projects that improve the quality of life and autonomy of people with disabilities or mental illness.

2022 Decentralised Social Initiative to support projects against poverty and inequality across the country.

Social inclusion projects on a local level, through the Bank's Commercial Networks - Private, Corporate and Institutional.

Commitment to People Commitment to Society Commitment to the Environment

"Together, we can give more!"

On World Cancer Day, BPI joined a solidarity campaign to raise funds for the Lisbon Oncology Institute (IPO).

This campaign kicked off with 355 th.€ donated by seven banks.

BPI exempts Private Social Solidarity Institutions (IPSS) from maintenance fees on all accounts

This exemption is attributed to all entities with class 87 and 88 Economic Activity Code (CAE). It is part of BPI's programme for the promotion of inclusive finance, which provides for the development of products with a social impact.

Commitment to People Commitment to Society Commitment to the Environment

BPI and "la Caixa" Foundation participated in actions to support the Ukrainians

• In coordination with the Lisbon Civil Protection:
• Collection of essential goods.
• Volunteers for goods sorting and packaging teams.
• In coordination with Entrajuda:
• Support in building the WeHelpUkraine platform.
• WeHelpUkraine platform disseminates a survey to match availability with needs.
• Support to the "La Bohème" solidarity performance at the National Theatre of São Carlos: 20 th.€ were donated to UNICEF Portugal and the Portuguese Red Cross to help refugees arriving in Portugal.
• Exemption of transfer fees to Ukraine.

"la Caixa" Foundation

BPI Volunteering and other initiatives

The "la Caixa" Foundation developed several initiatives to support the Ukrainians, in particular in coordination with the UNHCR and UNICEF.

Commitment to People Commitment to Society Commitment to the Environment

Main Sustainable Finance operations in 1Q22

NOS and BPI launched 100 M.€ sustainable finance operation

• BPI provided advisory services to NOS in the structuring of a Bond Loan (75 M€) and Commercial Paper Programme (25 M€)
• Linked to greenhouse gas emissions reduction by at least 80% by 2025

Sonae Sierra and BPI issued 25 M.€ Sustainable Bond

• The operation was fully organised, arranged and underwritten by Banco BPI
• Linked to greenhouse gas emissions reduction and increase in waste recycling rate

Environmental Management System

Certification of Environmental Management System attributed to banking and support activity at BPI's Casal Ribeiro building (compliance with ISO 14001:2015).

BPI'S QUALITY, INNOVATION AND DEDICATION TO ITS CLIENTS CONTINUE TO BE DISTINGUISHED

HIGHLIGHTS OF 1Q22 RESULTS

Strong commercial dynamism

High capitalisation, low risk profile and comfortable liquidity position

Increase in gross income

Commitment to People, Society and the Environment

Digital transformation and innovation on track

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

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

04

Alternative Performance Measures

BPI RATINGS VS. PEERS On 30th April 2022

	(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	Aa2 Mortgage bonds	AA	AA
t	AA-	Aa3	AA	Mortgage bonds 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	A	A (low)
I	BBB+	Baa1	Deposits Bank 1 BBB+ Senior debt	BBB (high)
	Bank 1 BBB	Bank1 Bank3 Baa2	BBB	Bank 3 BBB
	BBB	Baa3	Bank 3 BBB	Bank 2 BBB (low)
	BB+	Bank 2 Ba1	BB+	BB (high)
t	Bank 2 BB	Ba2	Bank 2 BB	BB
n e m	BB	Ba3	BB	BB (low)
st e d	B+	B1	B+	Bank 5 B (high)
e a v r n g	B	B2	B	Bank 4 B
I - n	B	Bank 4 B3	Bank 4 B	B (low)
o N	CCC+	Caa1	CCC+	CCC (high)
	CCC	Bank 5 Caa2	CCC	CCC
	S&P (20th Jan.22) reaffirmed BPI and its long term senior debt rating of BBB, with Stable outlook.	Moody's (21st Sep.21) upgraded the rating on BPI long term deposits to A3 and maintained the rating on BPI and its LT senior debt at Baa2. The outlook on ratings is Stable.	Fitch Stable outlook, deposits (BBB+).	(7th Oct.21) reaffirmed BPI rating of BBB, with and the ratings on its senior debt and

INCOME STATEMENT OF THE ACTIVITY IN PORTUGAL

In M €	Mar 21	Mar 22	%
Net interest income	113 2	113 0	0%
Dividend income	0 0	0 0	-82%
accounted Equity income	9 5	2 5	-13%
fee and Net commission income	63 4	71 2	12%
financial Gains/(losses) and liabilities and other assets on	8 9	8 6	-3%
Other operating income and expenses	-13 3	-20 1	-51%
Gross income	178 2	9 177	0%
Staff expenses	-59 1	-57 3	-3%
Other administrative expenses	-36 1	-38 3	6%
Depreciation and amortisation	-14 1	-16 6	18%
Operating expenses	-109 3	-112 3	3%
operating income Net	68 9	65 7	-5%
losses and other Impairment provisions	9 6	-23 3	-
Gains and losses in other assets	0 3	0 1	-70%
income before income Net tax	78 8	42 4	-46%
Income tax	-24 8	-14 6	-41%
income Net	53 9	27 8	-48%

BALANCE SHEET OF THE ACTIVITY IN PORTUGAL

34

LOAN PORTFOLIO AND CUSTOMER RESOURCES

Loan portfolio					Customer resources
portfolio in Gross M € ,	21 Mar	22 Mar	YoY	YtD
individuals I Loans to	13 930	261 15	10%	2%
loans Mortgage	12 189	13 441	10%	3%
Other loans individuals to	1 741	1 820	5%	1%
companies II Loans to	10 204	10 821	6%	3%
Public III sector	897 1	2 166	14%	2%
Total loans	26 031	28 247	9%	3%
Note:
portfolio of Loan net impairments	25 550	27 710	8%	3%

€ In M	Mar 21	Mar 22	YoY	YtD
deposits I Customer	26 618	29 666	11%	3%
under II Assets management	9 805	10 473	7%	-4%
Mutual funds	5 579	5 953	7%	-5%
Capitalisation insurance	4 225	4 520	7%	-1%
offerings III Public	1 281	555	-57%	-3%
Total	37 704	40 695	8%	1%

CONSOLIDATED INCOME STATEMENT

In M €	Mar 21	Mar 22
Net interest income	113 2	116 1
Dividend income	0 0	0 0
accounted Equity income	11 7	13 0
Net fee and commission income	63 4	71 2
Gains/(losses) financial and liabilities and other assets on	10 1	24 2
Other and operating income expenses	-13 3	-20 1
Gross income	185 2	204 4
Staff expenses	-59 1	-57 3
Other administrative expenses	-36 1	-38 3
Depreciation and amortisation	-14 1	-16 6
Operating expenses	-109 3	-112 3
operating income Net	75 9	92 2
Impairment losses and other provisions	9 6	-23 3
and losses other Gains in assets	0 3	0 1
income before income Net tax	85 8	68 9
Income tax	-25 6	-20 4
Net income	60 1	48 5

CONSOLIDATED BALANCE SHEET

In M.€	Dec 21	Mar 22
ASSETS
Cash and cash balances central banks and other demand deposits at	6 246	6 203
Financial held for trading fair value through profit or loss and fair assets , at at value through other comprehensive income	1 884	1 866
Financial amortised assets at cost Of which: Loans Customers to	32 138 27 008	33 013 27 710
and Investments in joint ventures associates Tangible assets	274 209	279 204
Intangible assets Tax assets	98 201	95 189
and disposal groups classified as held for sale Non-current assets Other assets	5 323	30 423
Total assets	41 378	42 302
LIABILITIES Financial liabilities held for trading Financial liabilities amortised at cost - Central Banks and Credit Deposits Institutions - Customers Deposits Debt securities issued Of which: subordinated liabilities financial Other liabilities Provisions liabilities Tax Other liabilities	104 37 201 826 5 28 872 2 206 304 296 53 20 334	76 38 021 672 5 29 666 2 325 426 358 54 20 429
Total Liabilities	37 711	38 600
Shareholders' attributable the shareholders of equity to BPI controlling interests Non	3 668 0	3 701 0
Total Shareholders' equity	3 668	3 701
Total liabilities and Shareholders' equity	41 378	42 302

CONSOLIDATED INDICATORS

Profitability Efficiency and Liquidity Indicators , (Bank of Portugal Instruction no. 16/2004 with the amendments of Instruction 6/2018)	21 Mar	22 Mar
Gross / income ATA	9% 1	2 0%
before and attributable non-controlling / Net income income tax income to interests ATA	0 9%	0 7%
income before income and income attributable non-controlling interests / Net tax to shareholders' (including non-controlling interests) equity average	10 3%	5% 7
income 1) Staff / Gross expenses	31 9%	28 0%
income 1) / Operating Gross expenses	59 1%	54 9%
(net) deposits Loans ratio to	96%	93%
ratio and forborne NPE (according to the EBA criteria)	21 Mar	22 Mar
Non-performing (M €) - NPE exposures	567	652
NPE ratio	1 5%	1 6%
by NPE impairments coverage	88%	85%
NPE by impairments and collaterals coverage	154%	150%
NPE 2) of forborne included Ratio in not	0 4%	0 4%
"Crédito duvidoso" (non-performing loans) (according Bank of Spain criteria) to	Mar 21	Mar 22
€) 3) "Crédito duvidoso" (M	610	698
"Crédito duvidoso" ratio	2 2%	2 3%
"Crédito duvidoso" by impairments coverage	82%	80%
"Crédito duvidoso" by impairments and collaterals coverage	142%	140%

38

2) Forborne according to EBA criteria and considering the scope of prudential supervision. On March 22, the forborne was 444 M.€ (forborne ratio of 1.0%), of which 183 M.€ was

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

¹⁾ Excluding early-retirement costs.

performing loans (0.4% of the gross credit exposure) and 260 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
(M.€) Mar 22	reported As by BPI	Adjustments 1 )	BPI contribution to CABK Group	BPI	Business segment Corporate Center
Net interest income	116	( 1)	115	112	3
Dividends
accounted Equity income	13		13	5	8
Net fees and commissions	71		71	71
Trading income	24		24	9	15
Other operating income & expenses	( 20)	1	( 19)	( 19)
income Gross	204		204	178	26
operating Recurrent expenses	( 112)	( 2)	( 114)	( 114)
Extraordinary operating expenses
Pre-impairment income	92	( 2)	90	64	26
[Pre-impairment income without extraordinary expenses]	92	( 2)	90	64	26
losses on financial Impairment assets	( 20)	54	34	34
Other impairments and provisions	( 3)	3
Gains/losses on disposals others &
income Pre-tax	69	55	124	98	26
Income tax	( 20)	( 15)	( 35)	( 29)	( 6)
Profit for the period	49	40	89	69	20
Minority interests & other
income Net	49	40	89	69	20

Loan portfolio & customer resources

March 2022 (M.€)	reported by As BPI	Adjustments	contribution BPI to (BPI segment) CABK Group
and advances Loans to customers, net	27 710	( 9)	27 701
Total funds customer	40 695	(4 553)	36 142

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 31st Mar. 2022 and consolidation adjustments (elimination of intra-group balances: BPI credit to CaixaBank Payments);
• In total customer funds, by the liabilities under insurance contracts and their fair value adjustments at 31st Mar. 2022, 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	22 Mar	22 Mar	Structure presented in the financial statements and respective notes
Net interest income	116.1	116.1	Net interest income
Dividend income	0.0	0.0	Dividend income
Equity accounted income	13.0	13.0	Share of the profit or (-) loss of investments in subsidiaries, joint ventures and associates accounted for using the equity method
Net fee and commission income	71.2	78.1	Fee and commission income
		-6.8	Fee and commission expenses
Gains/(losses) on financial assets and liabilities and other	24.2	0.0	Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net
		4.0	or (-) losses on financial assets and liabilities held for trading, Gains net
		0.3	or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, Gains net
		1.0	or (-) losses from hedge Gains accounting, net
		18.9	Exchange differences [gain or (-) loss], net
Other operating income and expenses	-20.1	9.0	Other operating income
		-29.1	Other operating expenses
Gross income	204.4	204.4	GROSS INCOME
Staff expenses	-57.3	-57.3	Staff expenses
Other administrative expenses	-38.3	-38.3	Other administrative expenses
and Depreciation amortisation	-16.6	-16.6	Depreciation
Operating expenses	-112.3	-112.3	Administrative expenses and depreciation
operating income Net	92.2	92.2
losses and other Impairment provisions	-23.3	-1.9	or (-) reversal of Provisions provisions
		-21.5	Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss
Gains and losses in other assets	0.1		Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates
			Impairment or (-) reversal of impairment on non-financial assets
		0.0	Gains or (-) losses on derecognition of investments in subsidiaries, joint ventures and associates, net
		0.0	or (-) losses on derecognition of non financial Gains assets, net
		0.0	Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations
income before income Net tax	68.9	68.9	(-) PROFIT OR LOSS BEFORE TAX FROM CONTINUING OPERATIONS
Income tax	-20.4	-20.4	related to profit or loss from Tax expense or income continuing operations
income from continuing operations Net	48.5	48.5	PROFIT OR (-) LOSS FROM CONTINUING OPERATIONS AFTER TAX
from discontinued Net income operations			Profit or (-) loss after tax from discontinued operations
Income attributable to non-controlling interests			Profit or (-) loss for the period attributable to non-controlling interests
Net income	48.5	48.5	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
Return on Assets (ROA)1)	(Net income attributable to BPI shareholders + Income attributable to non-controlling interests - preference shares dividends paid) / Average value in the period of net total assets
Unitary intermediation margin	Loan portfolio average interest rate, excluding loans to employees – Deposits average interest rate
BALANCE SHEET AND FUNDING INDICATORS
On-balance sheet Customer 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)
Assets under management3)	Mutual funds + Capitalisation insurance + Pension plans  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.

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(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 + Assets under management + Subscriptions in public offerings
Gross loans to customers	Gross loans and advances to Customers (financial assets at amortised cost), excluding other assets (guarantee accounts and others) and reverse repos + Gross debt securities issued by Customers (financial assets at amortised cost) Note: gross loans = performing loans + loans in arrears + receivable interests
Net loans to Customers	Gross loans to Customers – Impairments for loans to Customers
Loan-to-deposit ratio (CaixaBank criteria)	(Net loans to Customers - Funding obtained from the EIB, which is used to provide credit) / Deposits and retail bonds
ASSET QUALITY INDICATORS
Impairments and provisions for loans and guarantees (income statement)	Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss relative to loans and advances to Customers and to debt securities issued by Customers (financial assets at amortised cost), before deduction of recoveries of loans previously written off from assets, interest and others + Provisions or reversal of provisions for commitments and guarantees
Cost of credit risk	Impairments and provisions for loans and guarantees - Recoveries of loans previously written off from assets, interest and other
	Cost of credit risk as % of loan portfolio1) (Impairments and provisions for loans and guarantees - Recoveries of loans previously written off from assets, interest and other) / Average value in the period of the gross loans and guarantees portfolio.
Performing loans portfolio	Gross Customer loans - (Overdue loans and interest + Receivable interests and other)
NPE and NPL ratios	Ratio of non-performing exposures (NPE) and ratio of non-performing loans (NPL) in accordance with the EBA criteria (prudential perimeter)
Coverage of NPE or NPL	[Impairments for loans and advances to Customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments] / [Non-performing exposures (NPE) or Non-performing loans (NPL)]
Coverage of NPE or NPL by impairments and associated collaterals	[Impairments for loans and advances to Customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments + Collaterals associated to NPE or NPL] / [Non-performing exposures (NPE) or Non-performing loans (NPL)]
Non-performing loans ratio ("credito dudoso", Bank of Spain criteria)	Non performing loans ("credito dudoso", Bank of Spain criteria) / (Gross Customer loans + guarantees)
Non-performing loans coverage ratio	[Impairments for loans and advances to Customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments] / Non performing loans ("credito dudoso", Bank of Spain criteria)
Coverage of non-performing loans by impairments and associated collaterals	[Impairments for loans and advances to Customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments + Collateral associated to credit] / Non performing loans ("credito dudoso", Bank of Spain criteria)
Impairments cover of foreclosed properties	Impairments for real estate received in settlement of defaulting loans / Gross value of real estate received in settlement of defaulting loans

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BANCO BPI, S.A. Registered office: Avenida da Boavista 1117, Porto, Portugal Share capital: € 1 293 063 324.98 Registered at Commercial Registry of Porto under registration number PTIRNMJ 501 214 534 and tax identification number 501 214 534