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Banco Comercial Portugues

Investor Presentation Jul 31, 2020

1913_iss_2020-07-31_3f21ded8-6c43-4dd2-859a-08b3d988ab76.pdf

Investor Presentation

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1H20 Banco BPI Consolidated results

31 July 2020

"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 Glossary 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 consolidated results in the 1st half 2020

  • In the current context of the COVID‐19 crisis, BPI maintained its commercial dynamism and a strong financial position.
  • In the 1st half, BPI registered 83 M.€ of net loan impairments, preemptively including non‐allocated impairments resulting from the update of the macroeconomic scenario due to Covid19, which largely explains the yoy reduction in net income to 6.5 M.€ in the activity in Portugal.
  • The bank has remained fully operational throughout the confinement period, posting growth in deposits and loans, which led to market share gains.
  • The bank continued and accelerated the digital transformation process, with specific developments in response to the COVID‐19 crisis.
  • BPI adopted several measures to support families, companies and to reinforce its social commitment, in cooperation with the "la Caixa" Foundation.
  • BPI has a strong financial position to face potentially adverse scenarios with confidence, supporting its customers and the recovery of the Portuguese economy: a low risk profile, with an NPE ratio of 2.0% and a high coverage, a solid solvency position, abalanced funding structure and a comfortable liquidity position and investment grade ratings by Fitch Ratings, Moody's and S&P Global

BPI consolidated results in the 1st half 2020

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1) With the phasing of the impact from IFRS9 implementation (‐0.2 p.p.).

4

Consolidated net profit of 42.6 M.€ in the 1st half 2020

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

Loan portfolio increased 2.4% YtD

Loans to customers by segments

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Support to Families and Companies

BPI implemented a loan moratoria for families and companies (extended until 31 March 2021)

Operationalisation of state guaranteed credit lines to support companies in the context of the pandemic. BPI advanced up to 20% of the approved amount.

Maintenance of all outstanding credit line contracts until 30 September 2020, keeping interest rates unchanged

Note: in 2020 BPI changed the segmentation of the loan portfolio. The figures in Dec19 were restated to ensure comparability.

Support to FAMILIES and COMPANIES

FAMILIES

Mortgage loans moratorias1) (as of 30 Jun. 2020)

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1) Includes COVID‐19 renegotiations (bank's initiative moratorias). Breakdown by type of moratoria.

2) Corresponds to credit classified in stage 1 and in stage 2. Excludes credit in stage 3 (classified as default).

3) New ST and MLT credit grant (includes amounts not used or disbursed) and renewal of short‐term operations (agreed limits) for Companies and Businesses. Excludes credit under the COVID‐19 lines.

Mortgage loans origination and market share gain

54% yoy growth in mortgage new loans in 1H 20; market share gain.

During confinement, the Bank adapted the process of loan documentation and property appraisal, which allowed it to maintain its activity.

Personal loans and car financing

PERSONAL LOANS AND CAR FINANCING

Gradual recovery of commercial activity after confinement.

Loans to companies origination

10Note: The values shown in the graph refer to the amounts of credit agreements signed (agreed limits), available for use by customers. Only the amounts used (disbursed) are reflected in the credit portfolio balances. The renewals of operations (st) refer to the renewal of current account limits, contracted overdrafts, factoring and confirming.

BPI, a Bank for the Companies

BPI reinforces its position as the Bank for the Companies, through the launch of new credit lines, new services and the promotion of webinars with Customers

Applications until 15 September at www.premionacionalturismo.pt

Submission and consultation Files Assignments and Debtors / Invoice Advance / Integrated Factoring Position / Invoice Portfolio Consultation; Settled Invoices; Credit Notes, Agenda and Billing Contacts.

11

BPI, a Bank for the Families and Businesses

  • Immediate credit and credit for the purchase of non‐financial products: remote signing of agreements and home delivery of non‐financial products within 48 hours
  • Start of commercialisation of BPI Vida e Pensões insurance products
  • Launch of the New Retirement Savings Plans Destination 2030 and 2050
  • Improvement in the Advisory Sales and Consultancy service
  • Defined protocol model applicable to the most relevant Agricultural Associations
  • More products and services on BPI App

QUALITY OF SERVICE AND SATISFACTION

Satisfaction survey that evaluates the quality of service of each bank.

Day to Day

"Conta Valor" account , Commerce account, cards, transfer, App BPI and housing loans

Enjoy life

Consumer loans, car financing and renting

Sleep peacefully

Insurance and security alarm solutions

Planning for the future

Savings, investments and retirement savings plans

Customer deposits increased 1.9 Bi.€ YtD (+8.3%)

Customer resources

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131) Retirement savings plans ("Planos poupança reforma"‐PPR) include retirement savings plans in the form of mutual funds and capitalisation insurance. For this reason, the retirement savings plans are excluded in the calculation of the mutual funds and capitalisation insurance market shares.

Increase in transactions in Digital Channels and Automatic Zones

141) It were considered all operations that have a financial impact on the Customers' account, namely, Transfers, Payments, Deposits and Withdrawals. 2) Total = branches, digital channels, automatic zones and ATM.

Digital transformation: increased utilisation

151) Active customers 1st account holders, individuals and companies.

2) Individuals BASEF (May 2020, accumulated 12 months) , ECSI (2019) and Companies DATAE (2019), main Banks.

Digital transformation: priority in the response to the pandemic situation

Specific developments in the context of the pandemic

Subscription to home banking channels

subscription or reactivation of access to home banking channels by the Customer (BPI Net and BPI Net Empresas), without having to go to the Branch.

Loans moratoria

Moratoria applications through BPI Net andBPI Net Empresas

Reinforcement of digital solutions in the Commercial Networks

secure communication between the Client and the Manager (messages, documentation and instructions) with a significant increase in remote service capabilities and contracting of new products and services

iFactoring: Integrated factoring

Other developments

  • position; current account enquiries; advance of invoices and other functionalities at BPI Net Empresas
  • Extending the Immediate Credit Product and new functionalities on the digital channels
  • BPI Drive – digital submission of car financing proposals by Dealers and Customers and automatically integrated into the Bank's systems
  • Development of API ("Application Programming Interface") under the PSD2 / Open Banking Payments Directive.

  • Expansion of the Retirement Savings Plans offer in the home and mobile banking channels

  • Action plan to reduce paper documentation
  • Digital Signature, including signature with Citizen Card, Digital Mobile Key and Electronic Certificates
  • Expansion of the available offer allowing the start of contracting on digital channels, in conjunction with the commercial network

Net interest income increased 2.4% yoy in the 1st H. 2020

In M.€ Jun 19 Jun 20 % Net interest income 214.8 220.0 + 2.4% Dividends and equity accounted income 12.0 10.0 ‐ 17.3% 1) Net fee and commission income 127.2 118.1 ‐ 7.1% COMMERCIAL BANKING GROSS INCOME 354.0 348.1 ‐ 1.7% Gains/(losses) on financial assets and liabilities ‐1.7 ‐12.4 Banking sector contribution 2) ‐7.9 ‐15.5 Other net income ‐12.4 ‐8.4 Gross income 331.9 311.8 ‐ 6.1% Gross income in the activity in Portugal

171) Explained by the reduction in the contribution of Cosec (equity accounted).

2) In 2019, the banking sector contribution was accrued over the 12 months of the year; in 2020 it was accounted for in the 1st quarter in full.

Operating expenses decreased 3.6% yoy

1) Additionally, as of Jun.20, BPI had 36 premier centres, 1 mobile branch and 34 corporate centres in Portugal, thus totalling 448 business units.

18

Core cost‐to‐income of 59.6% in June 2020

1) Recurrent operating expenses deducted of revenues from services rendered to CaixaBank.

19

Regulatory costs

1) Annual costs recorded in full in the 1st half 2020.

20

2) In 2019, the banking sector contribution was accrued over the 12 months of the year (15.3 M.€ in 2019).

Loan impairments net of recoveries of 83 M.€ (1st half 2020)

1) Impairments after deducting recoveries of loans previously written off.

212) Non annualised.

NPE ratio of 2.0% in June 2020

1) NPE ratio considering the prudential supervision perimeter.

222) Coverage by impairments accumulated in the balance sheet for loans and guarantees; does not consider collaterals.

Employees pension liabilities

Employees pension liabilities


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232) Recognised directly in shareholders, in accordance with IAS19.

Consolidated capital

Solid capital position

1) Phasing‐in capital ratios (with the phasing of the impact from the IFRS9 implementation) including the net income for the 1st half 2020. The phasing‐in capital ratios in June 20 calculated for the purposes of prudential reporting COREP (excluding the net income for the 1st half) are: CET1 of 13.6%, Tier 1 of 15.2% and total capital ratio of 16.9%.

24

Balanced funding structure and comfortable liquidity position

Customer resources constitute the main source of financing of the balance sheet (68% of assets)

251) Includes short‐term public debt of 0.25 Bi.€ (Portugal), with a residual average maturity of 0.2 years, and medium and long‐term debt of 4.4 Bi.€ (Portugal 55%, Spain 30% and Italy 15%) with an average residual maturity of 2.7 years.

2) Average 12 months, according to EBA guidance. Average amount (last 12 months) of LCR components calculation: Liquidity Reserves (5 170 M.€); Total net outflows (2 592 M.€). 3) Regulatory minimum from June 2021.

Social responsibility

BPI, a Socially Responsible Bank

BPI DEEPLY COMMITTED TO SUPPORTING FAMILIES, COMPANIES AND THE SOCIETY

Protection of CLIENTS and EMPLOYEES

448

IN OPERATION

97% Branches and Premier C.

  • > 86% during the pandemic period
  • >94% since beginning of June

100%Corporate Centres

  • Since the 16th March, BPI's retail distribution network has been operating "behind closed doors", with restricted client access to the branches.
  • Promotion of the use of the branches automatic zones, which have more than 150 self‐service machines, and of digital channels and expansion of services available on these channels
  • Reinforcement of digital solutions in the Commercial Networks

COMMERCIAL UNITS 1.9 MILLION CLIENTS

Physical network

Digital Banking

  • Digital Banking (regular users) 690 th.(+7% yoy)
  • 430 th. (+26% yoy) BPI App (regular users)

% active digital clients1) 46%

4 817EMPLOYEES

46%in telework from home

  • 90%in central services
  • 24%in the commercial networks
  • Progressive return to the Bank's premises in central services from the beginning of July (~ 20% in the 1st phase), with teams rotation
  • Employees on leave to assist their children due to school closure: 100% of the salary + food allowance
  • Possibility to reschedule Easter holidays
  • Weekly rotation in commercial teams
  • Reinforced cleaning process and protective materials distributed
  • Workers commission and unions involved
  • Reinforcement of Internal communication and Training

271) Active customers 1st account holders, individuals and companies.

34 Corporate centres 1 346ATM

377

1

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38 th.

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(30 June 2020)

Premier centres

Social responsibility

"la Caixa" Foundation and BPI support new initiatives in response to the emergency caused by Covid‐19

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"la Caixa" Foundation and the Foundation for Science and Technology announce a permanent and multidisciplinary cooperation agreement in the areas of "HealthCare" research, Social Call and Promove Programme to support regions in the interior of Portugal

Matching Funds between "la Caixa" Foundation and the Foundation for Science and Technology HealthCare, Social Call and Promove Programme

Social responsibility

Implementation of programs of "la Caixa" Foundation in Portugal

"la Caixa" Foundation budget for 2020: 30 M.€ (19.3 M.€ in 2019)

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Public recognition in 2020

BPI ranking #1st place in the "Large Banks" category of the "Consumer Choice Awards" and "Five Stars Awards". BPI was recognised, for the 7th consecutive year, as the Portuguese Most Trusted Banking Brand. This is the first time a bank earns the three awards simultaneously, which value BPI's dedication to its Customers, offering them the best service and products.

BPI was distinguished as "Brand of Excellence" Superbrands, for the 7th consecutive year.

BPI earned the Wealth Tech Award 2020 for Best Private Bank for Portfolio Management Technology in Europe, from the PWM magazine. PWM positively assessed the impact of BPI's digital transformation on Customer Relationship and Wealth Management services.

BPI has investment grade ratings for LT debt and deposits

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hig
h),
… A
A, A
AA
A
… A
A‐,
AA
AA
AA
+ e
,
A Aa
3
bo
ds
Mo
rtg
ag
e
n
… A
A‐,
AA
AA
AA
A
+ e
,
(
low
)
A
A
bo
ds
Mo
rtg
ag
e
n
A+ A
1
A+ (
)
h
ig
h
A
A A
2
A A k
Ba
1
n
A‐ A
3
A‐ (
low
)
A
B
B
B+
Ba
1
a
its
De
L
T
p
os
k
Ba
1
n
B
B
B+
its
De
L
T
p
os
de
b
Se
ior
L
T
t
n
(
)
h
ig
h
B
B
B
l
Po
rtu
a
g
B
B
B
Po
rtu
g
a
k
Ba
1
l
n
Ba
2
a
B
B
B
l
Po
rtu
g
a
B
B
B
k
Ba
3
n
B
B
B‐
l
Po
Ba
3
rtu
g
a
a
k
1
Ba
n
B
B
B‐
(
low
)
B
B
B
k
Ba
2
n
B
B+
Ba
1
k
k
3
Ba
2
Ba
n
n
B
B+
k
Ba
3
n
(
h
h
)
B
B
ig
B
B
k
Ba
2
n
Ba
2
B
B
k
Ba
2
n
B
B
B
B‐
3
Ba
B
B‐
(
)
low
B
B
B+ B
1
B+ (
h
h
)
B
ig
k
Ba
5
n
B 2
B
B B k
Ba
4
n
B‐ B
3
B‐ k
Ba
4
n
(
low
)
B
C
C
C+
Ca
1
a
k
Ba
4
n
C
C
C+
(
h
h
)
C
C
C
ig
… C
CC,
CC
C‐,
CC,
C e
D Ca
2
a
k
Ba
5
n
… C
CC,
CC
C‐,
CC,
C e
D
C (
low
… C
CC,
CC
),
(
hig
h),
CC
(
low
),
CC,
CC
C
Caa
3,
Ca
e C
(
hig
h),
C (
low
C,
),
D

S&P (17 Sep.19) reaffirmed BPI and its long term senior debt rating of BBB, with Stable outlook.

  • Moody's (11 Mar.20) upgraded BPI and its long term senior debt rating from Ba1 to Baa3 and reaffirmed its LT deposits rating at Baa1. The ratings outlook is Stable.
  • Fitch (3 Apr.20) upgraded BPI's LT senior debt rating from BBB to BBB+, rated for the 1st time its LT deposits with a BBB+ rating and reaffirmed BPI rating of BBB, with Negative outlook.

Results in the 1st half 2020 ‐ Highlights

1) With the phasing of the impact from IFRS9 implementation (‐0.2 p.p.).

32

Results in the 1st Half 2020

(unaudited accounts)

Annexes

  • Income Statements and Balance sheet in accordance with IAS / IFRS
  • Profitability and efficiency as in the Bank of Portugal's Instruction no. 16/2004
  • Reconciliation between BPI reported figures and BPI Segment contribution to CaixaBank Group
  • Alternative performance measures

Income Statement of the activity in Portugal

(unaudited)

1
9
Ju
n
2
0
Ju
n

%
In
M
1)
d
tat
res
e
Ne
in
inc
t
te
t
re
s
om
e
2
1
4.
8
2
2
0.
0
2.
4
%
de
d
D
iv
i
inc
n
om
e
2.
3
2.
1
%
8.
7
i
d
inc
Eq
ty
te
u
ac
co
un
om
e
9.
8
7.
9
%
1
9.
3
fe
d c
iss
io
inc
Ne
t
e a
n
om
m
n
om
e
1
2
2
7.
1
1
8.
1
1
%
7.
/
(
los
)
f
l a
d
l
b
l
d o
he
Ga
ins
ina
ia
ia
i
i
ies
ts
t
t
se
s
on
nc
ss
e
an
a
n
r
(
)
1.
7
(
)
1
2.
4
he
d e
O
ing
inc
t
t
r o
p
er
a
om
e a
n
xp
en
se
s
(
)
2
0.
3
(
)
2
3.
9
1
7.
6
%
inc
Gr
os
s
om
e
3
3
1.
9
3
1
1.
8
6.
1
%
f
f e
S
ta
xp
en
se
s
(
)
1
2
2.
2
(
)
1
2
2.
4
%
0.
1
he
O
dm
in
is
ive
t
tra
t
r a
ex
p
en
se
s
(
)
4
7
5.
(
)
0.
7
7
6.
3
%
d a
De
ia
io
isa
io
t
t
t
p
re
c
n a
n
mo
r
n
(
)
2
6.
2
(
)
2
2.
8
1
3.
2
%
ing
Op
t
er
a
ex
p
en
se
s
(
)
2
2
3.
9
(
)
2
1
5.
9
3.
6
%
ing
inc
Ne
t o
t
p
er
a
om
e
1
0
8.
0
9
5.
9
%
1
1.
2
irm
los
d o
he
is
io
Im
t
t
p
a
en
se
s a
n
r p
ro
v
ns
1
0.
7
(
)
8
4.
0
d
los
he
Ga
ins
in
t
ts
a
n
se
s
o
r a
ss
e
1.
2
0.
7
3
8.
0
%
be
fo
Ne
inc
inc
t
ta
om
e
re
om
e
x
1
1
9.
9
1
2.
7
8
9.
4
%
Inc
ta
om
e
x
(
)
3
3.
1
(
)
6.
2
8
1.
2
%
inc
Ne
t
om
e
8
6.
9
6.
5
%
9
2.
6

1) At 2019 year end, the Banking sector contribution was reclassified from "Income tax" to "Other operating income and expenses". The profit and loss account for the 1st half 2019 was restated to consider this reclassification.

Consolidated income statement

(unaudited)

In

M
Ju
1
9
n
1)
d
tat
res
e
Ju
2
0
n
in
inc
Ne
t
te
t
re
s
om
e
2
8
1
4.
2
2
0.
0
de
d
D
iv
i
inc
n
om
e
4
8.
3
4
2.
3
d
Eq
i
inc
ty
te
u
ac
co
un
om
e
2
0.
2
1
1.
3
fe
d c
Ne
iss
io
inc
t
e a
n
om
m
n
om
e
1
2
2
7.
1
1
8.
1
/
(
)
ins
los
f
ina
ia
l a
d
l
ia
b
i
l
i
ies
d o
he
Ga
ts
t
t
se
s
on
nc
ss
e
an
a
n
r
(
)
6.
3
(
)
1
7.
9
he
d e
O
ing
inc
t
t
r o
p
er
a
om
e a
n
xp
en
se
s
(
)
2
4.
9
(
)
2
7.
1
Gr
inc
os
s
om
e
3
7
9.
2
3
4
6.
6
f
f e
S
ta
xp
en
se
s
(
)
1
2
2.
2
(
)
1
2
2.
4
he
dm
O
in
is
ive
t
tra
t
r a
ex
p
en
se
s
(
)
7
5.
4
(
)
7
0.
7
d
De
ia
io
isa
io
t
t
t
p
re
c
n a
n
am
or
n
(
)
2
6.
2
(
)
2
2.
8
Op
ing
t
er
a
ex
p
en
se
s
(
)
2
2
3.
9
(
)
2
9
1
5.
ing
inc
Ne
t o
t
p
er
a
om
e
1
5
5.
3
1
3
0.
8
los
d o
he
Im
irm
is
io
t
t
p
a
en
se
s a
n
r p
ro
v
ns
1
0.
7
(
)
8
4.
0
los
he
Ga
ins
d
in
t
ts
a
n
se
s
o
r a
ss
e
1.
2
0.
7
inc
be
fo
inc
Ne
t
ta
om
e
re
om
e
x
1
6
7.
1
4
7.
5
Inc
ta
om
e
x
(
)
3
2.
7
(
)
5.
0
Ne
inc
t
om
e
1
3
4.
5
4
2.
6

EARNINGS PER SHARE

Ju
1
9
n
Ju
2
0
n
ha
(
)
Ea
ing

rn
s p
er
s
re
0.
0
9
0.
0
2
h
d
f s
ha
(
l
l
)
Av
ig
in
i
io
te
er
ag
e w
e
nr
. o
re
s
m
ns
1
4
5
7
1
4
5
7

351) At 2019 year end, the Banking sector contribution was reclassified from "Income tax" to "Other operating income and expenses". The profit and loss account for the 1st half 2019 was restated to consider this reclassification.

Consolidated balance sheet

(unaudited)

In M
.€
De
c 1
9
Jun
20
AS
SET
S
Cas
h a
nd
h b
ala
al b
ks
and
he
r d
and
de
sits
t ce
ntr
ot
cas
nce
s a
an
em
po
1 0
68.
3
4 1
49.
1
ial
he
ld f
din
t fa
alu
hro
h p
rof
r lo
nd
at f
Fin
ir v
it o
air
ets
tra
e t
anc
ass
or
g, a
ug
ss a
val
thr
h o
the
reh
siv
e i
ue
ou
g
r co
mp
en
nco
me
2 3
26.
8
2 4
15.
0
ial
d c
Fin
ise
ets
at
ort
ost
anc
ass
am
27
439
.3
29
571
.9
Of
wh
ich
:
Cu
Loa
to
sto
ns
me
rs
23
987
.4
24
516
.6
Inv
in
jo
int
d a
cia
est
nts
ntu
tes
me
ve
res
an
sso
247
.2
242
.1
ibl
Tan
ts
g
e a
sse
169
.6
149
.3
ibl
Int
ts
ang
e a
sse
65.
8
73.
0
Tax
set
as
s
272
.5
268
.2
sal
cla
fie
s h
eld
fo
le
No
nd
dis
ssi
d a
t a
ts a
n‐c
urr
en
sse
po
gr
ou
ps
r sa
14.
6
10.
0
he
Ot
set
r as
s
207
.6
212
.4
al a
Tot
ts
sse
31
811
.6
37
091
.2
LIA
BIL
ITIE
S
ial
liab
ilit
he
ld f
Fin
ies
din
tra
anc
or
g
146
.2
144
.9
ial
liab
ilit
d c
Fin
ies
ise
at
ort
ost
anc
am
27
640
.2
33
116
.6
l Ba
nks
d C
red
De
sits
‐ C
it I
itu
tio
tra
nst
po
en
an
ns
2 7
77.
1
5 6
61.
7
sits
De
‐ C
ust
po
om
ers
23
231
.4
25
268
.0
bt
De
uri
tie
s is
d
sec
sue
1 3
58.
7
1 8
04.
1
du
ub
ord
ted
lia
bil
Me
m i
ina
itie
tem
mo
ran
s: s
s
304
.4
304
.5
he
r fi
l lia
bil
Ot
cia
itie
nan
s
273
.0
382
.8
vis
ion
Pro
s
44.
4
43.
7
Tax
lia
bil
itie
s
17.
2
19.
8
he
r li
ab
ilit
Ot
ies
527
.4
510
.1
al L
iab
ilit
Tot
ies
28
375
.4
33
835
.1
Sha
reh
old
' eq
uit
ibu
tab
le t
he
sha
reh
old
of
BP
I
ttr
o t
ers
y a
ers
3 4
36.
1
3 2
56.
1
No
llin
int
tro
sts
n c
on
g
ere
0.0 0.0
al S
har
eh
old
' e
Tot
ity
ers
qu
3 4
36.
1
3 2
56.
1
al l
iab
ilit
ies
d S
har
eh
old
' eq
uit
Tot
an
ers
y
31
811
.6
37
091
.2

Consolidated profitability and efficiency metrics

(unaudited)

Annexes

According to Bank of Portugal Instruction no. 16/2004 with the amendments of Instruction 6/2018

Ju
1
9
n
Ju
2
0
n
/
Gr
inc
A
T
A
os
s
om
e
2.
4
%
2.
0
%
/
be
fo
d
bu
b
le
l
l
Ne
inc
inc
inc
i
ing
in
A
T
A
t
ta
t
tr
ta
to
tro
te
ts
om
e
re
om
e
x a
n
om
e a
n
on
‐co
n
re
s
1.
1
%
0.
3
%
/
be
fo
d
bu
b
le
l
l
ha
ho
l
de
'
Ne
inc
inc
inc
i
ing
in
t
ta
t
tr
ta
to
tro
te
ts
om
e
re
om
e
x a
n
om
e a
n
on
‐co
n
re
s
av
er
ag
e s
re
rs
(
lu
d
l
l
)
i
inc
ing
ing
in
ty
tro
te
ts
eq
u
n
on
‐co
n
re
s
%
1
0.
4
%
2.
8
f
f e
/
1
S
Gr
inc
ta
xp
en
se
s
os
s
om
e
3
2.
2
%
3
3
%
5.
/
1
Op
ing
Gr
inc
t
er
a
ex
p
en
se
s
os
s
om
e
9.
0
%
5
6
2.
3
%
(
)
de
i
io
Lo
t
to
ts
t
an
s
ne
p
os
ra
%
1
0
2
%
9
9

1) Excluding early‐retirement costs.

NPE ratio and forborne (prudential perimeter; according to the EBA criteria)

Ju
1
9
n
Ju
2
0
n
fo
(
)
ing
io
No
N
P
E
t
n‐
p
er
rm
ex
p
os
ur
es
ra
3.
3
%
2.
0
%
by
d
l
la
ls
N
P
E c
im
irm
ts
te
ov
er
p
a
en
an
co
ra
1
2
6
%
1
3
4
%
2)
f
fo
bo
lu
de
d
Ra
io
inc
in
N
P
E
t
t
o
r
rn
e n
o
%
0.
7
%
0.
5

2) Forborne according to EBA criteria and considering the scope of prudential supervision. On 30 Jun. 2020, the forborne was 520.2 M.€ (forborne ratio of 1.3%), of which 183.2 M.€ was performing loans (0.5% of the gross credit exposure) and 337.0 M.€ was included in NPE (0.9% of the gross credit exposure).

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

Profit & loss account (Jun. 20)

In
i
l
l
ion
f e
(
M.

)
m
s o
uro
Ju
n 2
0
ort
ed
by
rep
BP
I
Con
sol
ida
tion
and
ard
isa
tion
, st
and
t ch
e in
FV
ne
ang
adj
ust
nts
de
rive
d fr
the
me
om
f bu
bin
atio
sin
com
n o
ess
es
Ju
n2
0 B
PI
ntr
ibu
tio
n t
co
o
CA
BK
G
rou
p
BP
I
t
se
gm
en
Eq
uit
y
inv
tm
ts
es
en
d o
the
an
r
t
se
gm
en
Ne
int
inc
t
st
ere
om
e
22
0
(
)
5
21
5
21
7
(
)
2
Div
i
de
ds
n
42 42 2 40
uit
d i
Eq
te
y a
cco
un
nco
me
11 (
)
1
10 7 3
fee
d c
Ne
mi
ssi
t
s a
n
om
on
s
11
8
11
8
11
8
din
Tra
inc
g
om
e
(
)
18
(
)
18
(
)
12
(
)
6
Ot
he
ing
in
&
rat
r o
pe
co
me
exp
en
ses
(
)
27
7 (
)
20
(
)
20
Gr
in
oss
co
me
34
7
1 34
8
31
2
36
Re
tin
nt
cu
rre
op
era
g e
xp
en
ses
(
)
21
6
(
)
9
(
)
22
5
(
)
22
5
din
Ext
tin
rao
r
ary
op
era
g e
xp
en
ses
Pre
‐im
irm
inc
t
pa
en
om
e
13
1
(
)
9
12
2
87 35
‐im
irm
inc
it
ho
d
ina
Pre
t
ut
tra
pa
en
om
e w
ex
or
ry
ex
pe
nse
s
13
1
(
9
)
12
2
87 35
los
fin
l as
Im
irm
cia
t
set
pa
en
ses
on
an
s
(
)
83
64 (
)
19
(
)
19
he
d p
Ot
r im
irm
isio
ts
pa
en
an
rov
ns
(
)
1
(
)
1
(
)
1
/
Ga
ins
los
dis
ls
&
he
ot
ses
on
po
sa
rs
1 1 1
x i
Pre
‐ta
nco
me
48 55 10
3
67 36
Inc
e t
om
ax
(
)
5
(
)
18
(
)
23
(
)
22
(
)
1
fit
for
he
d
Pro
rio
t
pe
43 37 80 45 35
he
Mi
rity
in
&
ter
est
ot
no
s
r
inc
Ne
t
om
e
43 37 80 45 35

The difference between the earnings released by BPI and the earnings attributable to CaixaBank Group is largely a result of consolidation adjustments, standardisation adjustments and the net change in the fair value adjustments generated from the business combination.

Additionally, the 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(Jun. 20)

Ju
2
0
ne
In m
illio
of e
(
M.€
)
ns
uro
Re
d
by
te
p
or
B
P
I
Ad
jus
tm
ent
s
B
P
I c
tr
i
bu
t
ion
to
on
C
A
B
K
Gr
ou
p
(
)
B
P
I se
nt
g
me
d a
dv
Lo
s t
to
t
an
s a
n
an
ce
o c
us
me
rs,
ne
2
4
5
1
7
(
)
1
3
5
2
4
3
8
2
l cu
fun
ds
To
ta
sto
me
r
3
5
6
5
8
(
)
4
5
0
7
3
1
1
5
1

The difference between BPI reported figures and those reported by CaixaBank for the BPI segment can largely be explained:

in Loans and advances to customers (net), by the associated fair value adjustments generated by the business combination at 30 June 2020 and consolidation adjustments (elimination of intra‐group balances: BPI credit to CaixaBank Payments);

in Customer funds, by the liabilities under insurance contracts and their fair value adjustments at 30 June 2020, 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.

Alternative Performance Measures – reconciliation of the income statement

The European Securities and Markets Authority (ESMA) published on 5 October 2015 a set of guidelines relating to the disclosure of Alternative Performance Measures by entities (ESMA / 2015 / 1415). These guidelines are to be obligatorily applied with effect from 3 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 the ESMA guidelines.

In the current presentation, the information previously disclosed is inserted by way of cross‐reference. A summarized list of the Alternative Performance Measures is presented next.

Ac
ron
ym
d
de
ign
ion
do
d
at
te
s a
n
s
s a
p
its,
Un
t
co
nv
en
ion
l s
ign
d a
b
bre
via
ion
t
a
s a
n
s
td
y
‐da
Yea
r‐to
te
€,
Eur
EU
R
os,
eur
os
yoy Yea
r‐o
n‐y
ear
M.
€,
M.
eu
ros
mil
lion
eu
ros
qo
q
rte
ter
qua
r‐o
n‐q
uar
th.
€, t
h. e
uro
s
tho
nd
usa
eur
os
RC
L
las
sifi
ed
Rec
cha
nge
n.a ilab
le
not
ava
ECB Cen
l Ba
nk
Eur
tra
ope
an
0, – nul
l or
ele
irr
t
van
Bo
P
k o
f P
l
Ban
ort
uga
Liq liqu
id
CM
VM
o d
ado
of
Val
obi
liár
(
rke
n)
Com
issã
o M
s M
ios
Sec
urit
ies
Ma
t C
mis
sio
erc
ore
om
vs. ver
sus
AP
M
Alt
erf
ativ
e P
e M
ern
orm
anc
eas
ure
s
b.p bas
is p
oin
ts
IM
M
Int
erb
ank
M
Ma
rke
t
one
y
p.p oin
tag
t
per
cen
e p
T1 Tie
r 1
E ima
Est
te
CET
1
Co
Equ
ity
Tie
r 1
mm
on
F For
st
eca
RW
A
Ris
k w
eig
hte
d a
ts
sse
RO
TLT
ted
lon
fin
ing
tio
Tar
‐te
ge
ger
rm
re
anc
op
era
ns
LCR uid
Liq
ity
io
rat
cov
era
ge
BPI Grupo X CaixaBan
-- ------------------------------------

Alternative Performance Measures – reconciliation of the income statement

Reconciliation of the income statement

The following table presents, for the consolidated income statement, the reconciliation of the structure used in the current document (Banco BPI Consolidated results in the 1st half 2020) with the structure used in the financial statements and respective notes of the 2019 Annual Report.

Consolidated income statement

ed
in t
he
ults
' Pr
tio
Str
Res
uct
nta
ure
us
ese
n
Jun
20
Jun
20
ted
in
the
fin
ial
d re
ctiv
Str
uct
sta
tem
ent
ote
ure
pre
sen
anc
s an
spe
e n
s
int
st i
Net
ere
nco
me
220
.0
220
.0 N
et i
t in
nte
res
com
e
Div
ide
nd
inc
om
e
42
.3
42. 3 D
ivid
end
inc
om
e
Equ
ity
ted
inc
acc
oun
om
e
11.
3
11.
3 S
/
(
s) o
har
f pr
ofit
los
f en
titi
ed
for
ing
the
uity
tho
d
unt
e o
es a
cco
us
eq
me
fee
d co
Net
issi
inc
an
mm
on
om
e
118
.1
129
.0 F
and
issi
inc
ee
co
mm
on
om
e
(1
0.8
) Fe
nd
mis
sio
e a
com
n e
xpe
nse
s
ns/
Gai
(
los
) on
fin
ial
d li
abi
litie
d o
the
ets
ses
anc
ass
an
s an
r
(17
.9)
0.0 ins/
(
los
) on
de
itio
f fi
cia
l as
d li
abi
litie
d a
t fa
ir v
alu
e th
h p
rof
it o
r lo
Ga
set
t m
net
ses
rec
ogn
n o
nan
s an
s no
eas
ure
rou
g
ss,
2.8 ins/
Ga
(
los
) on
fin
ial
d li
abi
litie
s he
ld f
rad
ing
ets
or t
t
ses
anc
ass
an
, ne
(1
)
8.4
ns/
(
) on
fin
for
t fa
rof
Gai
los
ial
t de
sig
ed
din
uls
ori
ly m
d a
ir v
alu
e th
h p
it o
r lo
ets
nat
tra
net
ses
anc
ass
no
g co
mp
eas
ure
rou
g
ss,
(
)
2.4
ns/
(
los
)
fro
m h
edg
Gai
ing
unt
t
ses
e a
cco
, ne
0.1 han
diff
s (g
/
los
s),
Exc
ain
net
ge
ere
nce
Oth
nd
atin
inc
er o
per
g
om
e a
exp
ens
es
(
1)
27.
19. the
9 O
ting
inc
r op
era
om
e
(47
.1)
Ot
her
ting
op
era
ex
pen
ses
Gro
ss i
nco
me
346
.6
346
.6 G
RO
SS
INC
OM
E
ff e
Sta
xpe
nse
s
(1
4)
22.
(1
4)
22.
ff e
Sta
xpe
nse
s
Oth
dm
inis
ive
trat
er a
ex
pen
ses
(7
)
0.7
(7
)
0.7
Oth
dm
inis
ive
trat
er a
ex
pen
ses
iati
and
isat
ion
Dep
ort
rec
on
am
(
8)
22.
(
8)
22.
iati
and
isat
ion
Dep
ort
rec
on
am
Op
ting
era
ex
pen
ses
(
.9)
215
(
.9)
215
A
dm
inis
ive
dep
iati
and
isat
ion
trat
ort
ex
pen
ses
rec
on
am
,
Net
ting
inc
op
era
om
e
130
.8
130
.8
los
d o
the
Imp
airm
ovi
sio
ent
ses
an
r pr
ns
(
0)
84.
(
0.2
) P
sal
of p
isio
isio
rov
ns o
r re
ver
rov
ns
(
8)
83.
/
(rev
al)
of i
los
fin
ial
d a
t fa
alu
e th
h p
rof
r lo
Imp
airm
airm
ir v
it o
ent
ent
ets
t m
ers
mp
ses
on
anc
ass
no
eas
ure
rou
g
ss
Gai
nd
los
in
oth
ts
ns a
ses
er a
sse
0.7 irm
(re
sal)
of
imp
airm
in
sub
sid
iari
es j
oin
d a
ciat
Im
ent
ent
t ve
ntu
pa
ver
res
an
sso
es
/
airm
(re
sal
) o
f im
irm
n‐f
ina
nci
al a
Imp
ent
ent
ts
ver
pa
on
no
sse
(
)
0.0
ns/
(
) on
Gai
los
de
itio
f no
n‐f
ina
nci
al a
ts,
net
ses
rec
ogn
n o
sse
0.7 fit/
(
los
s)
fro
d d
l gr
s cl
ifie
d a
s he
ld f
ale
alif
dis
ued
Pro
isp
ing
tin
tio
t as
set
t qu
m n
on‐
cur
ren
s an
osa
oup
ass
or s
no
y
as
con
op
era
ns
inc
e b
efo
re i
Net
tax
om
nco
me
47.
5
47.
5 P
FIT/
(
S) B
RO
LOS
EFO
RE T
AX
FRO
M C
ON
TIN
UIN
G O
PER
ATI
ON
S
Inc
e ta
om
x
(5.
0)
(5.
0) T
late
d to
fit
or l
fro
inc
inu
ing
tio
ont
ax e
xpe
nse
or
om
e re
pro
oss
m c
op
era
ns
inc
e fr
ntin
uin
atio
Net
om
om
co
g o
per
ns
42.
6
42.
6 P
FIT/
RO
(
LOS
S)
AFT
AX
FRO
M C
ON
TIN
UIN
G O
ATI
ON
S
ER T
PER
Net
inc
e fr
dis
tin
ued
tio
om
om
con
op
era
ns
fit/
(
s) a
Pro
los
fte
x fr
dis
tin
ued
tio
r ta
om
con
op
era
ns
but
abl
roll
Inc
ttri
ing
int
e to
ont
sts
om
e a
no
n‐c
ere
fit/
(
los
s)
for
the
riod
ribu
tab
le t
llin
Pro
inte
att
tro
ts
pe
o n
on‐
con
g
res
Net
inc
om
e
42.
6
42.
6 P
FIT/
(
S) F
RO
LOS
OR
TH
E P
ERI
OD
AT
TRI
BUT
AB
LE T
O O
WN
ERS
OF
TH
E PA
REN
T

Annexes

Alternative Performance Measures

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

Core cost‐to‐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) / 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 (excluding loans to employees) average interest rate ‐ Deposits average interest rate

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

BALANCE SHEET AND FUNDING INDICATORS

41

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: 6.5 M.€ in Dec.2019 and 2.4 M.€ in Jun.2020)
  • Capitalisation insurance of fully consolidated subsidiaries (BPI Vida e Pensões sold on Dec.17) = Unit links capitalisation insurance and "Aforro" capitalisation insurance and others (Technical provisions + Guaranteed rate and guaranteed retirement capitalisation insurance)

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 pension plans of BPI Group)

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. 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.

Alternative Performance Measures

BALANCE SHEET AND FUNDING INDICATORS (continuation)

Subscriptions in public offerings = Customers subscriptions in third parties' public offerings

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

42

Impairments and provisions for loans and guarantees (in 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 (in income statement) ‐ Recoveries of loans previously written off from assets, interest and other (in income statement)

Cost of credit risk as % of loan portfolio 1) = [Impairments and provisions for loans and guarantees (in income statement) ‐ 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 (Bank of Spain criteria) / (Gross customer loans + guarantees)

Non‐performing loans (Bank of Spain criteria) 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 (Bank of Spain criteria)

Coverage of non‐performing loans (Bank of Spain criteria) 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 (Bank of Spain criteria)

Impairments cover of foreclosed properties = Impairments coverage of foreclosed properties = Impairments for real estate received in settlement of defaulting loans / Gross value of real estate received in settlement of defaulting loans

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.

BANCO BPI, S.A. Registered office: Rua Tenente Valadim, 284, Porto 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

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