Banco Comercial Portugues

Legal Proceedings Report • Jan 25, 2021

25 January 2021

Banco Comercial Português, S.A. informs about provisions for FX-denominated mortgage loans booked by Bank Millennium, S.A.

Banco Comercial Português, S.A. informs that Bank Millennium S.A., in which it holds a 50.1% stake, has published the attached current report today.

End of announcement Banco Comercial Português, S.A.

Bank Millennium S.A. January 25, 2021

Current Report no. 3/2021

SUBJECT: Creation of additional provisions against legal risk related to FX mortgage loans portfolio

The Management Board of Bank Millennium S.A. ('the Bank') informs that it took a decision to create in its 4 th quarter 2020 accounts PLN 379.6 million of provisions for legal risk connected with FX mortgage loans originated by Bank Millennium. The higher than previous quarters provisions reflect the negative trends in court decisions and changes to the risk assessment methodology.

As a result of this level of provisions and despite solid operating performance, the Bank expects a negative net result in the 4th quarter of 2020, although a positive one in the full year 2020.

More information about the legal risk and 4th quarter financial results will be disclosed in a current report on the preliminary results due on February 2, 2021 and in annual report for 2020 to be published on February 22, 2021.

Legal basis: art. 17 section 1 MAR – confidential information