Banco Comercial Portugues

Regulatory Filings • Aug 1, 2021

1 August 2021

Banco Comercial Português, S.A. informs about 2021 EU-Wide Stress Test Results

Banco Comercial Português, S.A. was subject to the 2021 EU-wide stress test conducted by the European Banking Authority (EBA), in cooperation with the Banco de Portugal, the European Central Bank (ECB), and the European Systemic Risk Board (ESRB).

Banco Comercial Português, S.A. notes the announcements made today by the EBA on the EU-wide stress test and fully acknowledges the outcomes of this exercise, comprising 50 banks that together represent around 70% of total banking assets in the European Union.

The 2021 EU-wide stress test does not contain a pass-fail threshold and instead is designed to be used as an important source of information for the purposes of the SREP. The results will assist competent authorities in assessing Banco Comercial Português, S.A. ability to meet applicable prudential requirements under stressed scenarios.

The adverse stress test scenario was set by the ECB/ESRB and covers a three-year time horizon (2021- 2023). The stress test has been carried out applying a static balance sheet assumption as of December 2020, and therefore does not take into account future business strategies and management actions and do not represent a forecast of Banco Comercial Português, S.A. profits.

Detailed information on the results of Banco Comercial Português, S.A. in the stress test is available on the EBA website (www.wba.europa.eu). Considering the results of Banco Comercial Português, S.A, in the stress test, it should be highlighted the following:

• the application of the adverse scenario resulted in a reduction of 406 b.p. in the fully loaded CET1 capital ratio at the end of 2023 versus the data as at December 2020 (which compares with an average reduction of 485 b.p. in the universe of 50 banks submitted to this exercise);
• the application of the base scenario resulted in an increase of 163 b.p. in the fully loaded CET1 capital ratio at the end of 2023 versus the data as at December 2020 (which compares with an increase of 78 b.p. in the universe of 50 banks submitted to this exercise).

End of announcement Banco Comercial Português, S.A.