Banco Comercial Portugues

Investor Presentation • Oct 29, 2020

OCTOBER 2020

Banco Comercial Português

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 the first 9 months of 2020 not audited.

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

Re-defined priorities in response to the pandemic led to a uneventful transition after the confinement

Immediate reaction to worsening risk scenario

Business continuity ensured in reaction to significant and unexpected event

Preparation for adverse conditions and high uncertainty over a prolonged period

Going above and beyond in supporting and servicing our Customers

Severe and widespread confinement

Adapting to a new reality

Economic activity points to a less severe scenario than estimated in initial projections

Proven resilience of the Bank's business model

Agility to adapt the organization to the challenges and risks of the evolving pandemic

More intense commercial activity and adjustment of the risk management and governance models to the new context

Continuous assessment and predictive models for assessing the risk associated to the moratoria regime

Living with differing restrictions depending on the evolution of the pandemic

Priorities in 2020

Protect Employees and Customers

Defend the quality of the balance sheet

Support the economy

Strengthen social support

Adapt business models and processes

Highlights: resilience and adaptability

Highlights: resilience and adaptability

Growing Customer base, mobile Customers standing out

'000 Customers

Leading bank in Customer satisfaction with digital channels, in all items by Basef (5 largest banks, September 2020); Closest to Customers, clearest information; Bank most recommended by Customers: leader in overall satisfaction, in the quality of service and in product quality

Large bank with the lowest complaints index

(Synopsis of behavioural supervision activities of the Bank of Portugal, 5 largest banks, 1st nine months 2020, ranking weighted by the relative weight of each of the 3 main subjects complained to the Bank of Portugal)*

8 Customer counting criteria used in the Strategic Plan. | *Top ranked among the 5 largest banks in Portugal in all 3 categories (current accounts, personal loans and mortgage loans) of Customer complaints.

Best Digital Bank and Leader in Customer Satisfaction in 2020

4.9 rating on Google Play Store

Leading bank in Customer satisfaction with digital channels, in all assessed items: Basef, 5 largest banks, September 2020

Best recommendation score (NPS), digital channels: Basef, 5 largest banks, September 2020

Leading bank in CSI index Digital Customers¹

Best Digital Bank in 2020²

Best Consumer Digital Bank Award 2020 in Portugal³

Best Corporate/ Institutional Information Security and Fraud Management 2020 in Western Europe³

Digital: More Innovation at the service of Customers LAUNCHED IN Q3

New versions in 2020

15

918k active Customers

Customers >65 years old up by 25% since March

per Customer

> 1.4 million logins per day

Even simpler day-to-day Greater customization

SEPA immediate transfers

Card blocking

Card cancellation with replacement

More secure shopping

E-commerce with strong authentication via mobile

Individualized limits on cards and instant contracting

And more options in 100% >30 interactions/month digital management

Reinforcement, redemption and comparator of investment funds

Open Banking now includes international banks

It is now also possible to link accounts from 7 French banks

Net earnings of €146.3 million in the first nine months of 2020

(Million euros)	9M19	9M20	YoY	Impact on earnings
Net interest income	1 153 0 ,	1 149 6 ,	-0 3%	-3 4
Commissions	519 1	518 1	-0 2%	-1 0
Core income	1 672 0 ,	1 667 7 ,	-0 3%	-4 4
Operating excluding non-usual items costs	-805 6	-805 0	-0 1%	+0 6
Core earnings	866 5	862 7	-0 4%	-3 8
Non-usual operating costs Compensation for salary Bank temporary cuts, restructuring costs, Euro integration	-39 4	-27 4	-30 3%	+11 9
Other income*	68 6	20 1	-70 7%	-48 5
Operating income net	895 7	855 3	-4 5%	-40 3
Impairment and other provisions	-377 1	-550 7	+46 0%	-173 6
Net income before income tax	518 6	304 7	-41 2%	-213 9
, non-controlling and discontinued Income interests operations taxes	-248 3	-158 4	-36 2%	+89 9
Net income	270 3	146 3	-45 9%	-124 0

*Includes dividends from equity instruments, other net operating income, net trading income and equity accounted earnings. 12

Net interest income

Stable commissions in an adverse environment

Other income influenced by specific items

9M19: other operating income includes regulatory contributions of €133.9 million, gains net of intermediation fees of €21.8 million on the sale of real-estate in Portugal and of €4.7 mainly related to the sale of securities in Mozambique; 9M20: other operating income includes regulatory contributions of €149.1 million, and €3.2 million losses net of intermediation fees on the sale of real estate in Portugal.

Operating costs under control

Millennium bcp: one of the most efficient banks in the Eurozone

*Core income = net interest income + net fees and commission income.

Cost of risk and provisions

Credit quality

*By loan-loss reserves, expected loss gap and collaterals. NPE include loans to Customers only, except if otherwise indicated.

Customer funds keep growing

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

Continued increase on the performing loan portfolio

Group Capital and liquidity

Capital above regulatory requirements

• Capital generation of 22bp in the quarter: total capital of 15.7%* (fully implemented) as of September 2020, comfortably above SREP requirements
• Surplus of 2.4pp between the total capital ratio and the SREP requirement not using the capital conservation and the O-SII buffers, and of 5.5pp if such buffers are used
• CET1 capital ratio of 12.4%* (fully implemented) as of September 2020
• MDA buffer at €1.1 billion above the level at which there are restrictions on the maximum distributable amount of results, in accordance with banking regulation

24 *Including unaudited net income for 9M 2020.

**Minimum phased-in regulatory requirements from March 12, 2020.

Capital at adequate levels

Leverage ratio

(Fully implemented, latest available data)

Leverage ratio at 6.7% as of September 2020, a comfortable and comparatively strong figure in European banking

RWA density

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

High RWA density (54% as of September 2020), comparing favourably to most European banking markets

Reinforced liquidity position

26

Portugal

Net income affected by the Covid-19 context

995,1 966,7 9M19 9M20 Net operating revenue (Million euros) -2.9%

• Net earnings of €91.9 million in the first nine months of 2020, compared to €125.5 million in the same period of the previous year
• Net earnings were affected by higher impairment and provision charges

Net interest income

Net interest income stood at €591.2 million in the first nine months of 2020, comparing to €600.1 million in the same period of 2019. The negative impacts of the loan portfolio (with the favourable effect of a growing performing portfolio being more than offset by lower yields and by the reduction of NPEs); of the securities portfolio, reflecting lower yields; and of the application of the liquidity surplus (negative yields on the amounts applied at the ECB and in Treasury Bills); have more than offset the positive impacts of the lower wholesale funding cost and of the continued decline in the remuneration of time deposits.

Continued effort to reduce the cost of deposits

Spread on the prforming loan book

• Spread of the portfolio of term deposits of -0.51% in the first nine months of 2020 (-0.55% in the same period of 2019); front book priced at an average spread of -41bp in the first nine months of 2020, still below the current back book's
• Spread on the performing loan portfolio stood at 2.69% in the first nine months of 2020, compared to 2.72% in the first nine months of 2019
• NIM stood at 1.55%

Commissions and other income

	9M19	9M20	YoY
Banking fees and commissions	313 7	300 7	-4 1%
Cards and transfers	81 6	73 1	-10 4%
and Loans guarantees	82 8	76 2	-8 0%
Bancassurance	64 9	62 7	-3 4%
related Customer account	77 8	83 3	+7 1%
Other fees and commissions	6 5	5 3	-18 9%
Market related fees and commissions	43 2	51 9	+20 0%
Securities operations	33 3	39 4	+18 3%
Asset management	9 9	12 4	+25 7%
Total and fees commissions	356 9	352 5	-1 2%

(Million euros) Fees and commissions Other income

(Million euros) (Million euros)

Operating costs under control

Continued decrease of NPE

Non-performing exposures (NPE)

(Million euros)

NPE build-up

	Sep 20	Sep 20
(Million euros)	vs.Sep 19	vs.Dec 19
Opening balance	3 691 ,	3 246 ,
exits Net	-164	33
Write-offs	-251	-93
Sales	-575	-485
Ending balance	2 701 ,	2 701 ,

• NPE in Portugal down by €1.0 billion, from €3.7 billion as at September 2019 to €2.7 billion as at the same date of 2020
• This decrease results from net outflows of €0.2 billion, writeoffs of €0.3 billion and sales of €0.6 billion
• The decrease of NPE from September 2019 is attributable to a €0.7 billion reduction of NPL>90d and to a €0.3 billion decrease of other NPE
• Cost of risk of 90bp in the first nine months of 2020 (74bp in the same period of 2019), with a reinforcement of NPE coverage by loan-loss reserves to 61% from 54%, respectively

NPE include loans to Customers only.

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 71% for companies NPE as at September 2020, reaching 85% for companies NPL>90d (88% and 115%, respectively, if cash, financial collateral and expected loss gap are included)

NPE include loans to Customers only.

*By loan-loss reserves, expected loss gap and collaterals.

Foreclosed assets and corporate restructuring funds

829 726 ^{139 124 969 850} Sep 19 Sep 20 RE/tourism Industry -12.3% Corporate restructuring funds (Million euros)

• Net foreclosed assets were down by 20.0% between September 2019 and September 2020. Valuation of foreclosed assets by independent providers exceeded book value by 30%
• 1,511 properties were sold during the first nine months of 2020 (4,480 properties in the same period of 2019), with sale values exceeding book values by €16 million
• Corporate restructuring funds decreased 12.3% to €850 million at September 2020. The original credit exposure on these funds totals €2,006 million, with total reserves (original credit, plus restructuring funds) corresponding to a 58% coverage

Growing customer funds and performing loans to customers

Credit grows in Portugal

• Strong support to companies, which accounted for 89% of the total performing loan growth from September 2019.
• Performing credit portfolio in Portugal up by €2.3 billion (+7.0%) from September 2019 and by €2.4 billion in the first nine months of 2020
• Leading bank in specialised credit, with factoring invoicing amounting to €5.9 billion in the first nine months of 2020 and new leasing business of €330 million in the same period

Covid-19 credit lines to companies

(Amount in billion euros)

DISBURSED	# operations	Amount
st 1 wave	14,602	2.3
nd 2 wave	2,374	0.1
Total	16,976	2.4

• At the forefront in supporting the economy: the bank increased its presence, siding with companies during the pandemic
• Market leadership in Covid-19 lines: 38% of the amount approved in the 1st wave (rules for the 2nd wave cap amounts at the market share in credit to companies as at end-2019

Moratoriums

(Amount in billion euros)

HOUSEHOLDS	# operations	Amount
Public	59 560 ,	3 5
APB	41 554 ,	0 7
Total	101 114 ,	4 2
		Mortgage: 91%
COMPANIES	# operations	Amount
Public	23 909 ,	4 7

• Families: more than 101,000 moratoriums, totaling more than €4 billion, 98% of which performing
• 91% of moratoriums for individuals are related to mortgages
• Companies: close to 24,000 moratoriums, for a total amount of €4.7 billion, 88% of which performing

Analysis of the loan portfolio under moratoriums

International operations

Contribution from international operations to consolidated net income

(Million euros)

	9M19	9M20	Δ % local currency	Δ % euros		Contribution from international operations
Poland	120 6	29 8	3% -75	-76 0%
Mozambique	68 1	61 3	-9 9%	-17 9%	131,4	-58.6%
Contribution of the Angolan operation**	6 7	-6 9
Other	8 4	5 5
Net income international operations	203 7	89 7					54,4
Non-controlling int (Poland+Mozambique)	-82 9	-35 3
Exchange effect rate	10 6	--
Contribution from international (2) op.	131 4	54 4		-58 6%	9M19		9M20

*Based on the latest available information (August 2020 and provisions for September 2020). | Subsidiaries' net income presented for 2019 at the same exchange rate as of 2020 for comparison purposes.

Net earnings affected by provisions, mandatory contributions and Euro Bank's acquisition

568,7 602,8 9M19 9M20 Net operating revenue (Million euros) +6.0%

• Net income of €29.8 million, affected by one-off provisions (including €67.2 million for legal risk on CHF loans) and by Euro Bank's integration
• Euro Bank's integration: sinergies of €25.0 million more than compensate integration costs of €11.9 million in the first nine months of 2020
• Customers funds up by 5.6%; loans to Customers increased by 5.0%
• CET1 ratio of 17.0%, with total capital of 20.0%

FX effect excluded. €/Zloty constant at September 2020 levels: Income Statement 4.43; Balance Sheet 4.53. | *One-offs in 1H 2020: Euro Bank integration costs, provisions for FX mortgage legal risk, Covid-19 provisions, provisions for the return of commissions on loans repaid earlier by Customers and linear distribution of BFG resolution fund fee; one-offs in 1H 2019: Euro Bank integration costs, release of tax asset provision, positive revaluation of PSP shares, additional impairment on Euro Bank's merger and linear distribution of BFG resolution fund fee.

Integration of Euro Bank

Impact of the integration of Euro Bank

(Million euros)	Q1'19	Q2'19	Q3'19	Q4'19	Total 2019	Q1'20	Q2'20	Q3'20	Total 9M20
Bank integration Euro costs	-0 4	-4 0	-10 0	-11 8	-26 3	-6 8	-1 2	-3 9	-11 9
Additional impairment Bank Euro	0 0	-18 2	8 -1	0 0	-20 0	0 0	0 0	0 0	0 0
Pre-tax costs	-0 4	-22 2	8 -11	8 -11	-46 3	-6 8	2 -1	-3 9	9 -11
Pre-tax synergies	0 0	0 0	0 0	3 +5	3 +5	3 +5	+8 7	+10 9	+25 0
Total impact of , net taxes	-0 4	-18 0	-9 6	3 -5	-33 2	2 -1	6 1	5 7	10 6

• Synergies totalled €25.0 million in the first nine months of 2020, exceeding integration costs of €11.9 million in the same period
• Integration costs and capex incurred up to September 2020 account for 83% of the overall plan

Increased net interest income

Commissions and other income

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

*Pro forma data. Margin from derivative products, including those from hedging FX denominated loan portfolio, is included in net interest income, whereas in accounting terms, part of this margin (€10.3 million in the first nine months of 2019 and €7.1 million in the first nine months of 2020) is presented in net trading income. FX effect excluded. €/Zloty constant at September 2020 levels: Income Statement 4.43; Balance Sheet 4.53.

Credit quality

• NPL>90d accounted for 2.8% of total credit as of September 2020 (2.6% as of September 2019)
• Coverage of NPL>90d by loan-loss reserves at 116% (107% as of September 2019)
• Cost of risk of 92bp, compared to 60bp in the first nine months of 2019

FX effect excluded. €/Zloty constant at September 2020 levels: Income Statement 4.43; Balance Sheet 4.53.

Growing volumes

FX effect excluded. €/Zloty constant at September 2020 levels: Income Statement 4.43; Balance Sheet 4.53.

Net income impacted by provisions and by the normalisation of the interest rate environment

-7.9%

Net interest income impacted by the normalisation of the interest rate environment

Credit quality performance influenced by challenging environment

Business volumes

647

+8.9%

Key figures

Franchise growth		9M 2019	9M 2020		Steady state* (original plan)
	Active Customers	5.1 million	5.7 million	.	>6 million
	Digital Customers	58%	63%	.	>60%
Value creation	Mobile Customers	39%	46%	.	>45%
	Cost to income	49% (46% excluding non-usual costs)	49% (48% excluding non-usual costs)	.	≈40%
	RoE	6.0%	3.4%	.	≈10%
	CET1	12.3%	12.4%	.	≈12%
	Loans-to-deposits	88%	86%	.	<100%
Asset quality	Dividend payout	--		.	≈40%
	NPE stock	€4.6 billion	€3.7 billion	.	≈€3 billion Down ≈60% from 2017
	Cost of risk	73bp	89bp	.	<50bp

NPE include loans to Customers only.

*To be achieved after the economic impact of the current pandemic.

Millennium bcp Foundation Society Sustainability

"Todos" festival – Cultures walk – the 12th edition took place in two dimensions - in Lisbon (S. Vicente / Sta. Engrácia) and digitally, through #TODOSemlinha.

Coach Museum - restoration of the oldest Portuguese vehicle for the transportation of prisoners, popularly known as "Ramona", with the support of the Millennium bcp foundation.

First progress report on Millennium bcp's contribution to the SDGs - Sustainable Development Goals of the United Nations.

Sport science awards - (5th edition) attributed by the Portuguese Olympic Committee (COP) with the support of the Millennium bcp Foundation.

Portugal Chama 2020 – Millennium bcp participated in the national effort to prevent forest fires, by raising awareness to risky behaviours.

Millennium bcp signs "Statement from Business Leaders for Renewed Global Cooperation" of the United Nations Global Compact, assuming its commitment to ethical, cooperative and sustainable management.

Support to Life – support to pregnant women and adolescents in a fragile socio-economic situation (help, housing, training).

Quality of service: BCP has fewer Customer complaints than the average for Portugal's banking industry and than its main competitors in current accounts, personal loans and mortgage loans, according to Bank of Portugal's 1H2020 Behavioural Supervision Report.

Partnership with AMI, under the "Ecoética" project. Millennium bcp donated 50,000 Euros for the reforestation of the Leiria pine yard, under a campaign to promote the bank's digital account statement.

Awards in 2020

Millennium bcp: Closest to Customets, clearest information; most recommended bank; leader in Customer satisfaction, in quality of service and in product quality; leader in Customer satisfaction with digital channels, in all assessed items (Basef Banca, September 2020)

Millennium bcp: Marketeer award, "Banking" category (4th year in a row)

Millennium bcp: Quickest process in mortgage loans (ComparaJá.pt, mortgage credit barometer)

ActivoBank: "5 estrelas 2020" award, "Digital banking" category

ActivoBank: Best commercial bank, Best consumer digital bank and Best mobile banking app in Portugal

Millennium bim: Best digital bank award 2020 in Mozambique

Millennium bim: Best bank award 2020 in Mozambique (11th year in a row)

Millennium bim: Best trade finance provider 2020 in Mozambique

Millennium bim: Best private bank award 2020 in Mozambique

Millennium bim: Distinguished for its response to the global crisis resulting from the pandemic

Millennium bim: Most innovative banking services in Mozambique

Bank Millennium: now part of the WIG-ESG index of the Warsaw Stock Exchange for socially responsible companies, ranking 4th

Bank Millennium: Best digital bank award 2020 in Poland

Bank Millennium: European customer centricity award, "Complaints" category, attributed to the "Embrace the Problem" project

Bank Millennium: Most recommended bank and leader in Customer satisfaction ("Customer satisfaction monitor of retail banks ARC Rynek i Opinia")

Bank Millennium: Best trade finance provider 2020 in Poland

Bank Millennium: Best online banking, best mobile banking and best remote account opening process in Poland ("Institutions of the year 2020" ranking)

Bank Millennium: CSR golden leaf award of the "Polytika" magazine for the implementation of the strictest corporate social responsibility standards

Bank Millennium: : 6th in the Responsible companies ranking, 3rd in Banking, finance and insurance

Technologically Responsible Company" award Bank Millennium: 1st in the "Fin-tech innovation" category for the Autopay service, and 2nd in the "Mortgage loan" category

Bank Millennium: winner in the "Digital" and in the "People's choice" categories of the "TOP CDR

Millennium bcp

Best consumer digital bank award 2020 in Portugal; Best corporate/ Institutional information security and fraud management in Western Europe

Millennium bcp

Main bank for companies; most appropriate products; most efficient; closest to Customers

ActivoBank Consumer choice 2020, "Digital banks" category

Appendix

Sovereign debt portfolio

(Consolidated, million euros)

	Sep 19	Dec 19	Mar 20	Jun 20	Sep 20	YoY	QoQ
Portugal	7,413	6,520	6,802	8,253	8,057	+9%	-2%
T-bills and other	1,536	1,923	1,872	1,605	1,052	-32%	-34%
Bonds	5,876	4,597	4,930	6,648	7,004	+19%	+5%
Poland	4,645	5,077	4,820	5,869	5,463	+18%	-7%
Mozambique	320	257	269	280	302	-5%	+8%
Other	940	571	1,527	1,923	2,756	+193%	+43%
Total	13,317	12,426	13,417	16,325	16,578	+24%	+2%

Sovereign debt portfolio Sovereign debt maturity

• ✓ The sovereign debt portfolio totalled €16.6 billion, €12.5 billion of which maturing in excess of 2 years
• ✓ The Portuguese sovereign debt portfolio totalled €8.1 billion, whereas the Polish and Mozambican portfolios amounted to €5.5 billion and to €0.3 billion, respectively; "other" includes Spanish and Italian sovereign debt (€1.5 billion and €1.1 billion, respectively)

Sovereign debt portfolio

	Portugal	Poland	Mozambique	Other	Total
Trading book	1 046 ,	72	0	51	1 169 ,
1 year ≤	1 046 ,	11	0	50	1 108 ,
and 2 1 > year ≤ years	0	0	0	0	0
2 and 5 > years ≤ years	0	40	0	0	41
5 and 8 > years ≤ years	0	9	0	0	9
8 and 10 > years ≤ years	0	5	0	0	5
10 years >	0	6	0	0	6
Banking book*	010 7 ,	391 5 ,	302	2 706 ,	409 15 ,
1 ≤ year	25	874	26	259	1 184 ,
1 and 2 > year ≤ years	26	1 363 ,	87	263	1 739 ,
and 2 5 years years > ≤	386	2 971 ,	98	612	4 066 ,
and 8 5 years ≤ years >	5 053 ,	118	32	1 572 ,	6 774 ,
8 and 10 > years ≤ years	229 1 ,	36	0	0	265 1 ,
10 > years	292	31	60	0	382
Total	8 057 ,	5 463 ,	302	2 756 ,	16 578 ,
1 ≤ year	1 072 ,	885	26	309	2 292 ,
and 2 1 > year ≤ years	26	1 363 ,	87	263	1 739 ,
2 and 5 > years ≤ years	386	3 011 ,	98	612	107 4 ,
5 and 8 > years ≤ years	5 053 ,	127	32	1 572 ,	6 783 ,
8 and 10 years years > ≤	1 229 ,	40	0	0	1 269 ,
10 years >	292	36	60	0	388

*Includes financial assets at fair value through other comprehensive income (€11.655 million) and financial assets at amortised cost (€3.754 million). 57

Diversified and collateralised portfolio

Loans

• Loans to companies accounted for 43% of the loan portfolio as at September 2020, including 6% to construction and real-estate sectors
• Mortgage accounted for 47% of the loan portfolio, with low delinquency levels and an average LTV of 59%
• 85% of the loan portfolio is collateralised

Collaterals

• Real estate accounts for 93% of total collateral value
• 80% of the real estate collateral is residential

Consolidated net income

(Million euros)	9M19	9M20	YoY	Impact on earnings
Net interest income	1 153 0 ,	1 149 6 ,	-0 3%	-3 4
Net fees and commissions	519 1	518 1	-0 2%	-1 0
Other income*	68 6	20 1	-70 7%	-48 5
operating Net revenue	740 6 1 ,	687 8 1 ,	-3 0%	-52 8
Staff costs	-488 0	-484 4	-0 7%	+3 6
Other administrative and depreciation costs	-356 9	-348 0	-2 5%	+8 9
Operating costs	-844 9	-832 4	5% -1	+12 5
Profit before impairment and provisions	895 7	855 3	-4 5%	-40 3
impairment (net of recoveries) Loans	-299 0	-374 2	+25 2%	2 -75
Other impairment and provisions	-78 1	-176 4	+126 0%	-98 4
and Impairment provisions	-377 1	-550 7	+46 0%	-173 6
Net income before income tax	518 6	304 7	-41 2%	-213 9
Income taxes	-174 0	-122 4	-29 7%	+51 6
Non-controlling interests	-87 6	-35 9	-59 0%	+51 7
Net income from discontinued be discontinued operations to or	13 4	0 0		-13 4
Net income	270 3	146 3	-45 9%	-124 0

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

Consolidated balance sheet

(Million euros)

	30 September 2020	30 September 2019
ASSETS
Cash and deposits at Central Banks	3,843.8	3,766.3
Loans and advances to credit institutions repayable on demand	239.0	286.3
Financial assets at amortised cost
Loans and advances to credit institutions	845.1	978.1
Loans and advances to customers	51,629.8	49,418.8
Debt instruments	6,167.1	3,676.6
Financial assets at fair value through profit or loss
Financial assets held for trading	1,782.6	930.8
Financial assets not held for trading mandatorily at fair value through profit or loss	1,326.3	1,420.4
Financial assets designated at fair value through profit or loss	-	31.6
Financial assets at fair value through other comprehensive income	13,289.3	13,972.3
Hedging derivatives	138.8	267.7
Investments in associated companies	429.0	429.2
Non-current assets held for sale	1,181.4	1,422.9
Investment property	12.6	10.0
Other tangible assets	647.3	723.1
Goodwill and intangible assets	235.9	219.9
Current tax assets	11.5	25.2
Deferred tax assets	2,624.9	2,720.4
Other assets	1,612.7	1,059.6
TOTAL ASSETS	86,017.1	81,359.1

	30 September 2020	30 September 2019
LIABILITIES
Financial liabilities at amortised cost
Resources from credit institutions	9,071.7	6,502.8
Resources from customers	62,419.1	57,621.8
Non subordinated debt securities issued	1,420.0	1,751.8
Subordinated debt	1,419.5	1,685.7
Financial liabilities at fair value through profit or loss
Financial liabilities held for trading	350.6	333.1
Financial liabilities at fair value through profit or loss	1,883.0	3,379.1
Hedging derivatives	260.5	324.1
Provisions	356.5	332.4
Current tax liabilities	12.0	8.7
Deferred tax liabilities	9.5	11.4
Other liabilities	1,335.5	1,772.8
TOTAL LIABILITIES	78,537.8	73,723.6
EQUITY
Share capital	4,725.0	4,725.0
Share premium	16.5	16.5
Other equity instruments	400.0	402.9
Legal and statutory reserves	254.5	240.5
Treasury shares	(0.7)	(0.1)
Reserves and retained earnings	742.6	750.6
Net income for the period attributable to Bank's Shareholders	146.3	270.3
TOTAL EQUITY ATTRIBUTABLE TO BANK'S SHAREHOLDERS	6,284.1	6,405.8
Non-controlling interests	1,195.3	1,229.7
TOTAL EQUITY	7,479.3	7,635.5
TOTAL LIABILITIES AND EQUITY	86,017.1	81,359.1

Consolidated income statement per quarter

(Million euros)

	3Q 19	4Q 19	1Q 20	2Q 20	3Q 20
Net interest income	412 9	395 6	385 5	373 6	390 5
Dividends from equity instruments	0 1	0 1	0 1	3 4	1 3
Net fees and commission income	176 9	184 4	179 8	165 4	172 9
Other operating income	-13 3	-13 8	-40 4	-79 1	-24 2
Net trading income	23 6	24 2	61 4	-21 8	65 2
Equity accounted earnings	17 8	4 0	10 8	32 1	11 3
Banking income	617 9	594 4	597 2	473 6	617 0
Staff costs	163 8	180 2	164 7	162 9	156 8
Other administrative costs	101 6	106 0	86 3	78 8	79 7
Depreciation	32 9	35 0	34 8	34 4	34 1
Operating costs	298 2	321 2	285 7	276 1	270 7
bef and Profit impairment provisions	319 6	273 2	311 4	197 6	346 3
Loans impairment (net of recoveries)	98 7	91 2	86 1	151 2	136 9
Other impairm . and provisions	35 2	73 4	115 7	-1 7	62 4
before Net income income tax	185 7	108 7	6 109	48 0	147 0
Income tax	52 9	65 2	65 6	-6 8	63 6
Non-controlling interests	32 2	11 8	8 7	14 1	13 1
income (before disc . oper.) Net	100 5	31 7	35 3	40 7	70 3
Net income arising from discont . operations	0 0	0 0	0 0	0 0	0 0
Net income	100 5	31 7	35 3	40 7	70 3

Income statement

(Million euros)

For the 9-month periods ended September 30th, 2019 and 2020

		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
	Sep 19	Sep 2 0	Δ %	Sep 19	Sep 2 0	Δ %	Sep 19	Sep 2 0	Δ %	Sep 19	Sep 2 0	Δ %	Sep 19	Sep 2 0	Δ %	Sep 19	Sep 2 0	Δ %
Interest income	1,478	1,392	-5.8%	717	675	-5.8%	761	717	-5.8%	565	549	-2.8%	188	162	-13.8%	8	5	-27.4%
Interest expense	325	242	-25.4%	117	84	-27.9%	208	158	-23.9%	159	114	-28.6%	49	44	-8.5%	0	0	-31.8%
N et interest inco me	1,153	1,150	-0.3%	600	591	-1.5%	553	558	1.0%	406	435	7.2%	139	118	-15.6%	7	5	-27.3%
Dividends from equity instruments	1	5	>100%	0	4	>100%	1	1	9.0%	1	1	16.9%	0	0	-100.0%	0	0	--
Intermediatio n margin	1,154	1,154	0.1%	600	595	-0.8%	554	559	1.0%	407	436	7.3%	139	118	-15.6%	7	5	-27.3%
Net fees and commission income	519	518	-0.2%	357	353	-1.2%	162	166	2.1%	120	125	4.0%	23	21	-11.1%	19	20	6.2%
Other operating income	-90	-144	-59.2%	-38	-72	-91.2%	-52	-71	-36.1%	-66	-79	-20.2%	14	8	-38.0%	0	-1	<-100%
B asic inco me	1,583	1,529	-3.4%	919	875	-4.8%	663	653	-1.5%	461	482	4.6%	176	147	-16.8%	2 6	2 4	-5.2%
Net trading income	119	105	-12.0%	48	47	-2.5%	71	58	-18.5%	57	45	-20.9%	11	10	-4.8%	3	2	-20.7%
Equity accounted earnings	39	54	39.1%	28	45	59.7%	11	10	-12.7%	0	0	--	0	0	--	11	10	-12.7%
B anking inco me	1,741	1,688	-3.0%	995	967	-2.9%	746	721	-3.3%	518	528	1.7%	187	157	-16.1%	4 0	3 7	-8.5%
Staff costs	488	484	-0.7%	302	290	-4.0%	186	195	4.6%	141	150	6.5%	31	30	-3.5%	15	15	2.8%
Other administrative costs	267	245	-8.3%	139	129	-7.7%	128	116	-9.1%	90	82	-8.8%	33	29	-11.0%	5	5	-1.8%
Depreciation	90	103	14.9%	51	57	11.4%	39	46	19.6%	29	36	21.8%	8	9	13.6%	1	1	3.7%
Operating co sts	845	832	-1.5%	492	475	-3.4%	353	357	1.3%	260	268	3.0%	73	69	-5.0%	20	21	1.7%
P ro fit bef. impairment and pro visio ns	896	855	-4.5%	503	491	-2.3%	393	364	-7.4%	259	260	0.5%	115	8 8	-23.1%	2 0	16	-18.9%
Loans impairment (net of recoveries)	299	374	25.2%	206	260	26.2%	93	114	22.8%	79	103	30.7%	16	10	-36.1%	-3	0	>100%
Other impairm. and provisions	78	176	>100%	68	72	5.9%	10	104	>100%	8	86	>100%	1	2	9.8%	0	17	--
N et inco me befo re inco me tax	519	305	-41.2%	228	158	-30.5%	291		146 -49.7%	171	7 1	-58.7%	9 7	7 6	-21.4%	2 2	- 1	<-100%
Income tax	174	122	-29.7%	103	66	-35.5%	71	56	-21.1%	47	41	-12.9%	21	14	-33.6%	3	1	-68.4%
Non-controlling interests	88	36	-59.0%	0	0	>100%	88	36	-59.3%	0	0	--	1	1	-19.6%	87	35	-59.6%
N et inco me (befo re disc. o per.)	257	146	-43.1%	125	9 2	-26.7%	131		5 4 -58.6%	124	3 0	-76.0%	7 5		6 1 -17.9%	-68	-37	45.6%
Net income arising from discont. operations	13	0	-100.0%
N et inco me	270		146 -45.9%

Glossary (1/2)

Assets placed with customers – 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.

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 investments).) 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.

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.