Banco Comercial Portugues

Investor Presentation • Feb 2, 2022

THE FUTURE IS ALWAYS NOW

12M21 BANCO BPI CONSOLIDATED RESULTS

02 F E B R U A R Y 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 2021

Permanent support to Families, Businesses, and Society

Consolidated net income of 307 M.€ (vs 105 M.€ in 2020)

Recurrent net income from the activity in Portugal of 200 M.€ (vs 84 M.€ in 2020);

Strong commercial dynamism,

in a very adverse environment: loans grew by 7.1% YoY and total Customer resources by 9.0% YoY;

Gross income increased by 7.6% YoY,

commissions grew significantly (+18%) and net interest income shows resilience (+1.2%);

Focus on digital transformation and the Customer experience:

772 thousand digital clients, of which 537 thousand with BPI app (+75 th. YoY);

Strong economic and financial position:

NPE of 1.6%, and NPE coverage at 149%;

CET1 ratio of 14.2% and total capital of 17.4%;

Investment grade ratings by the three main agencies;

Commitment to People, Society and the Environment

30 M.€ to support Society with "la Caixa" Foundation;

BPI was considered the Best Reputed Bank

in Portugal, according to the latest survey of the independent consulting firm OnStrategy.

Profit Consolidated	307 M.€
In Portugal (recurrent net profit)	200 M.€
Commercial activity	(YoY)
Loan portfolio	+1.8 Bi.€
Customer Resources	+3.3 Bi.€
Asset quality
NPE	1.6 %
Coverage	149 %
Capitalisation

CET1 ratio 14.2 %

Total ratio 17.4 %

31 Dec. 2021

CONSOLIDATED NET PROFIT OF 307 M.€ IN 2021

Recurrent net profit in Portugal of 200 M.€

€ In M	Dec 20	Dec 21
Activity in Portugal
profit Recurrent net	84	200
1) Non-recurrent impacts	-18	-22
profit in Portugal Net	66	179
BFA contribution	30	106
BCI contribution	8	23
Consolidated profit net	105	307

BFA and BCI contribution

• BFA contribution of 106 M.€. It includes 40 M.€ of 2020 ordinary dividend and 50 M.€ of free reserves distribution recorded in the income statement.
• BCI contribution of 23 M.€

Of which					 YoY
	Commercial Banking Gross Income	(2) +53 M.€
	Reduction in		loan impairments		+104 M.€
 Costs					-2 M.€
	Income tax and other				-40 M.€
	Activity in Portugal Recurrent net profit (M.€)
170	218	231		200	Recurrent ROTE
			84		2020 2021 2 7% 6 8%
17	18	19	20	21

1) Early retirements and voluntary terminations

2) Net interest income, fees and commissions, dividends and equity accounted income.

4

LOAN PORTFOLIO GREW 7.1%

Loans to Customers by segments
Dec 20	Dec 21	YoY
13	9	8
7	14	3%
12	13	9
0	1	0%
1	1	3
7	8	8%
10	10	5%
1	5	4
9	2	12
1	1	5%
25	27	7
7	5	1%
25	27	7
2	0	1%

Market share
of total loan portfolio	11.1% +0.4 p.p. YoY (Nov. 2021)

MORTGAGE LENDING ORIGINATION INCREASED 40% YoY

TOTAL CUSTOMER RESOURCES GREW 9%

Deposits +11% YoY and Assets under management +12.6% YoY

Customer resources	Market shares
Bi € In	Dec 20	Dec 21	YoY
deposits I Customer	26 0	28 9	11 0%
under II Assets management	9 6	10 9	12 6%
funds Mutual	5 3	6 3	18 2%
Capitalisation insurance	3 4	6 4	9% 5
Public offerings III	3 1	0 6	-57%
Total	37 0	40 3	9 0%

	Nov 21	YoY 
resources 1 Customer	11 3%	+0 2 p.p.
Deposits	10 8%	+0 2 p.p.
funds Mutual	10 5%	-0 1 p.p.
Capitalisation insurance	18 2%	+1 2 p.p.
Retirement savings plans	11 8%	+0 4 p.p.

7

GROSS INCOME INCREASED 7.6%

Commercial banking gross income increased 7.4%

Gross income in the activity in Portugal
In M.€	Dec 20	Dec 21	%	Resilience of net interest income, +1.2%
Net interest income	450	456	1.2%	Growth in loan volume ALCO management
Dividends and equity accounted income	21	25	19.7%	Intermediation margin narrowed
Net fee and commission income	245	288	17.7%	Net fee and commission income grew 18%
COMMERCIAL BANKING GROSS INCOME	716	769	7.4%	Mutual funds and capitalisation insurance (+29%) Loans (+27%)
Other income (net) 1	( 18)	( 17)	1.5%	Accounts and related services (+21%)
Gross income	698	751	7.6%	Insurance intermediation (+5%)

STABLE OPERATING EXPENSES

COST-TO-CORE INCOME IMPROVED TO 54.2%

Cost-to-core income

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

REGULATORY COSTS OF 41.6 M.€ IN 2021

BPI MAINTAINS LOW RISK PROFILE AND INCREASES COVERAGE

	Dec.21
NPL ratio (EBA criteria)	2.0%
Non-Performing Loans (NPL)	634 M.€
NPL coverage by impairments and collaterals	150%
Foreclosed properties (net book value)	4 M.€
Corporate restructuring and recovery funds (book value)	37 M.€

103% PENSION COVERAGE

Employee pension liabilities

M.€		Dec 20	Dec 21
Total past service liability		1 907	1 887
Pension funds net assets		1 873	(1) 1 944
Level of coverage of pension liabilities		98%	103%
Pension fund return		2.7%	7.2%
Discount rate		1.01%	1.26%
	Men:	TV 88/90	TV 88/90 - 1 year
Mortality tables	Women:	TV 88/90 - 3 years	TV99/01 - 2 years

2021
104
82
-51
-31
105

14

BPI MAINTAINS HIGH CAPITALISATION

Consolidated capital ratios			Capital requirements (SREP)
(phased-in)	17 3%	17 4%		in 2021
Total Capital Tier 1 Common Equity Tier 1	15 6% 14 1%	7% 15 14 2%	Total Capital T1 CET1	12.875% 10.375% 8.50%
	Dec 20	Dec 21
MDA Buffer (Maximum Distributable Amount)	4.4%	4.5%
Leverage ratio	7.3%	6.8%	Leverage	3.0%
MREL Ratios			requirement 1) MREL ≥ 1 Jan.2022	≥ 1 Jan.2024
MREL as % of RWA	19.8%	23.7%	2) 19.05%	23.95% 2)
MREL as % of LRE	9.3%	10.3%	5.91%

1) As disclosed to the market on 5 Feb. 2021.

2) Includes combined capital buffer requirement

15

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 (10 548 M.€); Total net outflows (3 877 M.€).

2) High Quality Liquid Assets (HQLA) of 11.6 Bi.€ and other assets eligible as collateral with ECB of 1.1 Bi.€.

16

BPI, A BANK FOR FAMILIES

With proposals and solutions at every step of your life

• New Valor+ and Premier+ accounts
• Immediate Loans for acquisition of non-financial products
• Immediate Loans with Life and Protection insurance
• Insurance: Launch of security Check-up
• More information and process simplification in Insurance

New CITIZEN segment for foreign residents

Customised advisory service

and Premier Centres

~9.9 Bi.€

business volume

Financial Advisors at Branches

# 208

covering the 5

Customer experiences

Success of new omnichannel service, with remote personal account manager

4 Centres 65 Account

~2.4 Bi.€

business volume

Sleeping Peacefully

92 thousand Customers

Managers

96% acceptance rate

BPI, A BANK FOR COMPANIES

The partner at every step of companies' lives

AGRICULTURE, TOURISM AND INTERNATIONAL TRADE

Specialised support to segments

Dedicated financial solutions

Support Line to Upgrade the Offer 2021 - Turismo de Portugal

BPI/EIF Agriculture: Guarantee agreement with the European Investment Fund

• National Agricultural Fair
• Ovibeja
• Agroglobal

• Colóquio do Milho

• BTL – Lisbon Tourism Fair.

• Tourism Companies Programme 360 from Turismo de Portugal
• NEST – Centro de Inovação do Turismo (founding partner)

Specialist teams

Credit risk hedging in partnership with COSEC (1st mediator, 23% share of global policies)

Partnerships BPI-CaixaBank Initiatives

• "Businesses with the World" (4 editions): meetings between BPI Clients and Caixabank representatives about several markets.
• In-Company Sessions Free-of-charge information sessions held at corporate Clients' premises.

Teams dedicated to finance structuring, offering, risk analysis and business promotion.

BPI FOSTERS BUSINESS INNOVATION AND SUSTAINABILITY

Rewarding and giving visibility to the Portuguese companies

DIGITAL BANKING INCREASINGLY RELEVANT AT BPI

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

1) Digitally initiated contracting of Term Deposits and Savings, Mutual Funds and Retirement Saving Plans, Personal loans, Prestige Products, Credit and Prepaid Cards and Cash Advance on Credit Cards

21

2) BASEF Banks - November 2021 (main banks) 3) Inmark 2021

INNOVATION IN THE DIGITAL CHANNELS

Enhanced Experience of Individual Clients

Simplification of Daily Routines My Home

data made easier

• Digital Mobile Key now used to open an account and update personal details
• Easier access to MB WAY Payments
• Simplification of contracting, cancellation and replacement of Debit Cards through the Digital Channels

Mortgage Loan Simulator for residents and non-resident emigrants Launch of BPI Broker on BPI Net Self-confirmation of personal

Start of Mortgage Loan contracting, with online decision

Enjoying Life

Acquisition of Prestige Products through Instant Loans

Looking to the Future

Sleeping Peacefully

• Protection Insurance in Immediate Loans
• Occupational Hazards and Civil Liability insurance
• Life Insurance linked to Mortgage and Personal Loans
• Security Check-up to assess the Client's level of protection

(new in 2021)

4Q

4Q

INNOVATION IN THE DIGITAL CHANNELS

Relevant transformative initiatives of Corporate and Small business clients' experience

• Credit Cards offer and Prestige Products catalogue available on BPI Net Empresas
• Closing data inquiries on the new POS (acquiring Visa/MasterCard) at BPI Net Empresas
• Instant Loans for companies, 100% digital at BPI Net Empresas:
• Simulation and contracting on BPI Net Empresas, with automated decision
• Funds made available on the spot

Larger offer Better experience

• Simplification of Customer contact with the Commercial Networks, to contract more services through the Contact with Account Manager
• Extension of BPI Drive solution to new commercial partners
• New App BPI Empresas:
• Improved design and simpler browsing
• Biometric authentication and new functionalities

FOCUS ON THE CUSTOMER EXPERIENCE: A CLOSER, SIMPLER AND FASTER BANK

Automation

+ 87% of operations through the Automated Areas

+ Functionalities

Mobility and Digitisation

• + Sale support tools
• + Sale and remote service solutions

Simplification of the Offer

Simplification of Processes

Commitment to People Commitment to Society Commitment to the Environment

"More movement, more health" programme

Balance between professional, personal and family life Conect@r to improve balance. MásFamilia conciliation (efr).

Diversity and Inclusion

"Unconscious Bias" training. "Gender Diversity" Guide.

Attracting and retaining talent

University events.

Best reputation as an employer in the banking sector (OnStrategy).

Human capital development

Specific training and self-learning. BPI Talks (digital format).

Scholarships

Commitment to People Commitment to Society Commitment to the Environment

raised

#TODOSJUNTOS

BPI and "la Caixa" Foundation, nine other banks and more than 30 companies joined forces, for the first time, to support people in situations of social vulnerability due to the crisis provoked by COVID-19.

5 BPI "la Caixa" Foundation Awards To improve the quality of life of people in social vulnerability.

Since 2010:

• 781 projects supported
• 23 M.€ in aid
• + 175 thousand Portuguese supported

Portugal Social Innovation: in 2021, 9 applications raised +220 th.€ from social investors, to apply to +660 th.€ in non-repayable grants.

A total of 2.5 million euros was raised for the purchase of basic foodstuffs, and of this total, 20% was earmarked for the acquisition of urgent medicines.

The amount raised was distributed by the Food Emergency Network.

Decentralised Social Initiative

Support to local social projects through BPI's Commercial Networks.

In 2021:

• 188 projects
• 1.2 M.€ invested
• + 42 thousand direct beneficiaries

Commitment to People Commitment to Society Commitment to the Environment

Environmental Management System

• First Environmental Management System (EMS) certification awarded to the banking and support activity of the Avenida Casal Ribeiro building. The certificate proves the EMS compliance with ISO 14001:2015.
• Environmental Information Map for all the Employees.
• Reduction of energy and paper consumption, more efficient use of water and drive towards sustainable mobility.
• Energy consumption 100% green.
• Employee awareness initiatives.
• Products and services with environmental criteria (Corporate and Individual Clients).

Main Sustainable Finance operations

• 112 M.€ EDP Renováveis: BPI 47 M.€ and EIB 65 M.€
• 750 M.€ EDP: BPI/CaixaBank in syndicate (Joint Bookrunner)
• 75 M.€ BA Glass: Organisation, 100% subscribed by BPI
• 30 M.€ NOS: Organisation, 100% subscribed by BPI
• 100 M.€ Navigator: Co-organiser, 50% subscribed by BPI
• 41 M.€ Sonae Capital: Co-organiser, 50% subscribed by BPI

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

Fernando Ulrich "Personality of the Year"

for APFIPP - Portuguese Association of Investment Funds, Pensions and Wealth Management

HIGHLIGHTS OF 2021 RESULTS

Strong commercial dynamism, despite the adverse economic environment

High capitalisation, low risk profile and comfortable liquidity position

Gross income growth and efficiency improvement

Commitment to People, Society and the Environment

Digital transformation and innovation on track

BPI was considered the Best Reputed Bank

CONSOLIDATED RESULTS

ANNEXES

01 BPI Ratings versus peers

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

Reconciliation between BPI 03

02

reported figures and BPI Segment contribution to CaixaBank Group

04

Alternative Performance Measures

BPI RATINGS VS. PEERS On 28th January 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	Mortgage bonds Aa2	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	A	A3 Deposits	A	A (low)
n I	BBB+	Baa1	Deposits Bank 1 BBB+ Senior debt	BBB (high)
	Bank 1 BBB	Bank1 Bank3 Baa2	BBB	Bank 3 BBB
	BBB	Baa3	BBB	Bank 2 BBB (low)
	BB+	Bank 2 Ba1	Bank 3 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	B	B2	B	Bank 4 B
g 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 (20 Jan.22) reaffirmed BPI and its long term senior debt rating of BBB, with Stable outlook.	Moody's (21 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 deposits (BBB+).	(7 Oct.21) reaffirmed BPI rating of BBB, with Stable outlook. and the ratings on its senior debt and

INCOME STATEMENT OF THE ACTIVITY IN PORTUGAL

In M €	Dec 20	Dec 21	%
Net interest income	450 1	6 455	2% 1
Dividend income	2 4	1 9	-19 3%
accounted Equity income	18 5	23 1	24 6%
fee and Net commission income	244 9	288 2	7% 17
Gains/(losses) financial and liabilities and other assets on	-2 9	10 0	-
Other and operating income expenses	-14 7	-27 4	-86 1%
income Gross	698 3	3 751	7 6%
staff Recurrent expenses	-239 4	-231 1	-3 5%
Other administrative expenses	-138 2	-135 6	-1 9%
and Depreciation amortisation	-48 7	-61 2	25 8%
Recurring operating expenses	-426 3	-427 9	0 4%
Non-recurrent costs	-25 0	-29 8	19 5%
Operating expenses	-451 3	-457 7	1 4%
operating income Net	247 0	293 6	18 9%
Impairment losses and other provisions	-159 2	-50 9	-68 0%
and losses other Gains in assets	0 3	-0 6	-
income before income Net tax	88 1	242 2	0% 175
Income tax	-21 9	-63 6	-
income Net	66 2	178 6	169 9%

BALANCE SHEET OF THE ACTIVITY IN PORTUGAL

LOAN PORTFOLIO AND CUSTOMER RESOURCES

Loan portfolio				Customer resources
portfolio in Gross M € ,	Dec 20	Dec 21	YoY
I Loans individuals to	13 745	14 892	8 3%
loans Mortgage	12 008	13 089	9 0%
Other loans individuals to	1 737	1 803	3 8%
companies II Loans to	10 072	10 523	4 5%
Public III sector	1 879	2 115	12 5%
Total loans	25 695	27 529	1% 7
Note:
portfolio of Loan net impairments	25 208	27 008	1% 7

€ In M	Dec 20	Dec 21	YoY
deposits I Customer	26 009	28 872	11 0%
under II Assets management	9 644	10 861	12 6%
Mutual funds	5 309	6 273	18 2%
Capitalisation insurance	4 334	4 588	5 9%
offerings III Public	1 336	572	-57 2%
Total	36 989	40 305	9 0%

CONSOLIDATED INCOME STATEMENT

In M €	20 Dec	21 Dec
Net interest income	450 1	460 5
Dividend income	42 6	99 8
accounted Equity income	27 7	8 47
fee and Net commission income	244 9	288 2
Gains/(losses) financial and liabilities and other assets on	-12 3	26 5
Other and operating income expenses	-18 0	-35 3
Gross income	735 1	887 5
Staff expenses	-264 4	-260 9
Of which: staff Recurrent expenses	-239 4	-231 1
Non-recurrent costs	-25 0	-29 8
Other administrative expenses	-138 2	-135 6
and Depreciation amortisation	-48 7	-61 2
Operating expenses	3 -451	-457 7
operating income Net	283 8	429 8
losses and other Impairment provisions	-159 2	-50 9
Gains and losses other in assets	0 3	-0 6
income before income Net tax	124 9	378 4
Income tax	-20 1	6 -71
income Net	104 8	306 8
EARNINGS PER SHARE	Dec 20	Dec 21
share (€) Earnings per	0 06	0 20
weighted of shares (in millions) Average nr.	1 456 9	1 456 9

CONSOLIDATED BALANCE SHEET

In M.€	Dec 20	Dec 21
ASSETS
Cash and cash balances central banks and other demand deposits at	535 2 4	6 245 8
Financial held for trading fair value through profit or loss and fair assets , at at value through other comprehensive income	2 258 5	1 884 1
Financial amortised assets at cost Of which: Loans Customers to Investments in joint and associates ventures Tangible assets Intangible assets	30 004 0 25 207 8 238 2 152 9 87 0	32 137 8 27 007 7 273 9 209 2 98 4
Tax assets	271 0	200 9
and disposal groups classified as held for sale Non-current assets Other assets	7 9 231 0	5 1 323 0
Total assets	37 785.6	378.3 41
LIABILITIES Financial liabilities held for trading Financial liabilities amortised at cost - Central Banks and Credit Deposits Institutions Deposits - Customers Debt issued securities Of which: subordinated liabilities Other financial liabilities Provisions Tax liabilities Other liabilities Total Liabilities	141 3 33 695 7 5 504 3 26 008 6 804 1 9 304 3 378 0 48 7 23 2 620 3 34 529.3	103 9 37 200 6 5 826 3 28 872 1 2 206 3 304 3 295 9 52 5 20 1 333 7 37 710.8
Shareholders' attributable the shareholders of equity to BPI	3 256 3	3 667 5
controlling Non interests	0 0	0 0
Total Shareholders' equity	3 256.3	3 667.5
Total liabilities and Shareholders' equity	37 785.6	378.3 41

CONSOLIDATED INDICATORS

Profitability Efficiency and Liquidity Indicators , (Bank of Portugal Instruction no. 16/2004 with the amendments of Instruction 6/2018)	Dec 20	Dec 21
/ Gross income ATA	2 1%	2 2%
before and attributable non-controlling / Net income income income interests ATA tax to	0 4%	1 0%
before and attributable non-controlling / Net income income tax income to interests shareholders' (including non-controlling interests) equity average	8% 3	10 7%
income 1) Staff / Gross expenses	32 6%	26 0%
income 1) Operating / Gross expenses	58 0%	48 2%
Loans (net) deposits ratio to	97%	94%
ratio and forborne NPE (according the EBA criteria) to	20 Dec	21 Dec
Non-performing (M €) - NPE exposures	611	646
NPE ratio	1 7%	1 6%
NPE by impairments coverage	83%	84%
by impairments and collaterals NPE coverage	140%	149%
NPE 2) of forborne included Ratio in not	0 5%	0 4%
"Crédito duvidoso" (non-performing loans) (according Bank of Spain criteria) to	Dec 20	Dec 21
€) 3) "Crédito duvidoso" (M	630	683
"Crédito duvidoso" ratio	2 3%	2 3%
"Crédito duvidoso" by impairments coverage	81%	80%
"Crédito duvidoso" by and collaterals impairments coverage	134%	140%

39

2) Forborne according to EBA criteria and considering the scope of prudential supervision. On Dec.21, the forborne was 422 M.€ (forborne ratio of 1.0%), of which 187 M.€ was performing loans (0.4% of the gross credit exposure) and 235 M.€ was included in NPE (0.5% of the gross credit exposure).

¹⁾ Excluding early-retirement costs.

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

Profit & loss account
(M.€) Dec 21	reported As by BPI	Adjustments 1 )	contribution BPI CABK Group to	BPI segment	Equity investments and other segment
Net interest income	460	( 9)	451	453	( 2)
Dividends	100		100	2	98
Equity accounted income	48		48	23	25
fees and Net commissions	288		288	288
Trading income	27	1	28	11	17
Other operating income & expenses	( 35)	3	( 32)	( 24)	( 8)
income Gross	888	( 6)	882	753	129
Recurrent operating expenses	( 428)	( 16)	( 444)	( 444)
Extraordinary operating expenses	( 30)	29	( 1)	( 1)
Pre-impairment income	430	7	437	308	129
[Pre-impairment income without extraordinary expenses]	460	( 22)	438	309	129
losses on financial Impairment assets	( 47)	7	( 40)	( 40)
Other impairments and provisions	( 4)	( 33)	( 37)	( 37)
Gains/losses on disposals others &	( 1)	( 5)	( 6)	( 6)
Pre-tax income	378	( 24)	354	225	129
Income tax	( 72)	11	( 61)	( 55)	( 6)
Profit for the period	307	( 14)	293	170	123
Minority interests & other
income Net	307	( 14)	293	170	123

Loan portfolio & customer resources

reported by As BPI	Adjustments	contribution BPI to (BPI segment) CABK Group
27	(	26
008	77)	931
40	(4	35
305	628)	677

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 Investments segment contributions, 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 associated fair value adjustments generated by the business combination at 31st Dec. 2021 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 Dec. 2021, 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 the object of disclosure, as required by ESMA guidelines.
• In the current presentation, the information previously disclosed is inserted 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

used in the Results' Presentation Structure	Dec 21	Dec 21	presented in the financial and respective Structure statements notes
Net interest income	460.5	460.5	Net interest income
Dividend income	99.8	99.8	Dividend income
Equity accounted income	47.8	47.8	Share of the profit or (-) loss of investments in subsidiaries, joint and associates accounted for using the equity method ventures
Net fee and commission income	288.2	308.2	Fee and commission income
		-20.0	and commission Fee expenses
Gains/(losses) on financial and liabilities and other assets	26.5	0.2	Gains or (-) losses on derecognition of financial and liabilities measured fair value through profit or loss, assets not at net
		5.4	or (-) losses on financial and liabilities held for trading, Gains assets net
		-5.2	or (-) losses on non-trading financial mandatorily fair value through profit or loss, Gains assets at net
		-2.1	from Gains or (-) losses hedge accounting, net
		28.2	Exchange differences [gain or (-) loss], net
Other operating income and expenses	-35.3	29.3	Other operating income
		-64.6	Other operating expenses
Gross income	887.5	887.5	GROSS INCOME
Staff expenses	-260.9	-260.9	Staff expenses
Other administrative expenses	-135.6	-135.6	Other administrative expenses
and Depreciation amortisation	-61.2	-61.2	Depreciation
Operating expenses	-457.7	-457.7	Administrative expenses and depreciation
Net operating income	429.8	429.8
Impairment losses and other provisions	-50.9	-5.3	Provisions or (-) reversal of provisions
		-45.6	Impairment or (-) reversal of impairment on financial measured fair value through profit or loss assets not at
Gains and losses in other assets	-0.6	-0.2	Impairment or (-) reversal of impairment of investments in subsidiaries, joint and associates ventures
		-0.9	or (-) reversal of on non-financial Impairment impairment assets
		0.0	or (-) losses on derecognition of non financial Gains assets, net
		0.5	Profit or (-) loss from and disposal groups classified as held for sale qualifying as discontinued non-current assets not operations
Net income before income tax	378.4	378.4	PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS
Income tax	-71.6	-71.6	Tax expense or income related profit or loss from continuing operations to
income from continuing operations Net	306.8	306.8	PROFIT OR (-) LOSS FROM CONTINUING OPERATIONS AFTER TAX
from discontinued Net income operations			Profit or (-) loss after from discontinued tax operations
attributable non-controlling Income to interests			Profit or (-) loss for the period attributable non-controlling to interests
income Net	306.8	306.8	(-) 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 1) ratio)	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 Ratio	Ratio of non-performing exposures (NPE) in accordance with the EBA criteria (prudential perimeter)
Coverage of NPE	[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)
Coverage of NPE 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] / Non-performing exposures (NPE)
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, 4100-129 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