Banco Comercial Portugues

Investor Presentation • Nov 4, 2019

9M19 Banco BPI Consolidated results

4 November 2019

"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, neither BPI, nor any of its administrators, directors or employees, either explicitly or implicitly, guarantees that these contents are exact, accurate, comprehensive or complete, nor are they 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 September 2019

l i i N P t t e n c o m e n o r u g a d i h l i d d t t a n n e c o n s o a e	( 1) y l d d f f b (‐ ) C i i 2 3. 6 € in S 2 0 1 9 2 % 5 M 5 t t t t  o n s o a e n e p r o o e p e m e r oy i f i i l f b (‐ ) R P 1 5 2. 8 M € in S 2 0 1 9 7 % t t t t  e c r r n g n e p r o n o r g a o u u e p e m e r y oy
h G i t t r o w n c u s o m e r d l r e s o u r c e s a n o a n s	( ) d i 2 2 8 8 % d C 1 M € 5. t t t  + u s o m e r e p o s s g r e w y ( ) f l i d i d L 6 0 2 M € 2. 6 % L 2. 8 % t t t t  + o a n p o r o o g r e w y o a n s o c o m p a n e s g r e w y ;
i h l i H t t g a s s e q u a y	f ( d f ) f b N i i N P E E B A in i io 3. 2 % in S 2 0 1 9 t t t  o n‐ p e r o r m n e p o s r e s r a o o g x u e n e p e m e r – by d l la l f f i ( ) f C im irm N P E 1 2 4 % t t  o v e r a g e p a e n s a n c o e ra o n o n‐ p e r o r m n g e x p o s u r e s o
f O i i i t t p m s a o n o d l l i i t t p r u e n a c a p a i i t c o m p o s o n	f f d d l ( ) b fu l ly b b d by b k I 2 € A i i i 1 A 1 i S 2 0 1 9, i C ixa 7 5 M T T t t  s s u a n c e o o o n a e r n e p e m e r su s c r e a a n he ha ho l d d he d f ' p l bu fre he f T Bo D ire d is i in 0 € 1 5 M t t t t t t t  s re e r a p p ro ve a r o c o rs ro p o s a o r e e re s e rv e s a m ou n o he bu he k ha d d l l h T io i Ba in i i i i i i i t t t t t t t t t t t  o p m s e p ru e n a c a p a c o m p o s o n, s e ra ns a c ns c o n r e o n v g a m o re w a d is i bu io f he ie d l i l e le l ig d i h he lev ls in he C E T 1, T 1 To C C R R t t t t t t t t t t t r n o r a n a a p a m e n s m o re a ne w e s e ou ( l la ) C i Re ire Re io t t t a p a q m e n s g n u u
l S i i i t t t r o n g c a p a s a o n	2): i l i ( fu l ly lo d d ), f d i i b i f f f d l C 1 5 0 M € C E T 1 1 2. 7 % T 1 1 4. 2 % t t t t t t t  a p a r a o s a e a e r r e s e rv e s s r u o n o o o a n o a , l f i 9 % 1 5. t c a p a o f l ly lo d d lev io % Fu 7. 8 t  a e e ra g e ra o

(1) When comparing the consolidated net profit with September 2018, it should be taken into account that:

• Significant positive non‐recurring impacts were booked in September 2018 (+160 M.€) in Activity in Portugal;
• The consolidated net profit in Sep.18 reflects the appropriation of BFA's results by the equity method, whereas in Sep.19 it reflects BFA's dividends (following the change in the accounting classification of the investment in BFA at the end of 2018) and reversal of deferred tax liabilities.

32) Includes the net income in September 2019 assuming a dividend payout corresponding to the upper limit of the dividend policy, and net of the free reserves distributed, subject to approval by the supervisor. The proforma capital ratios prior to the distribution of reserves were: CET1 of 13.6%, T1 of 15.2%, and total capital ratio of 16.9%.

Consolidated net profit of 253.6 M.€ in Sep. 19

	l i d d i C t t o n s o a e n e n c o m e				 o y
	I M € n	S 1 8 e p	S 1 9 e p	 %	i i fu d I t  m p a r m e n s n r e c o v e ry n s	‐1 1 M €
i i i A t t c v y n	i i i l A P t t t c v y n o r u g a				N i i t t t  e n e r e s n o m e c i i C  o m m s s o n s	1 1 M € + ‐9 M €
l P t o r g a u	i f i R t t e c u r r n g n e p r o 1) i i N t o n‐ r e c u r r n g m p a c s	1 6 4. 2 1 6 0. 2	1 5 2. 8 ( ) 0. 0	‐7 %	f l G i i i i t  a n s n n a n c a a s s e s / l i b i l i i & h t t a e s o e r	‐1 M €
i b d i h t t t c o n r u e w h 1 5 2. 7 M € t t o e	f l N i i P t t t e p r o n o r u g a	3 2 4. 4	1 2. 5 7	3 % ‐5	i O t  p e r a n g e x p e n s e s	‐6 M €
l d d i t t c o n s o a e n e B f i i S 9 1 t p r o n e p.	b i i F A t t c o n r u o n	( ) 2 9 3. 1 7	( 8 6. 4	) 3	d h I t t  n c o m e a x a n o e r	6 M € +
	b C i i B I t t c o n r u o n	0 1 1.	1 4. 5		l i R R O T E P t t e c u r r e n n o r u g a Se 8 1	Se 1 9
	f l i d d i C t t t o n s o a e n e p r o	5 2 9. 1	2 5 3. 6	% ‐5 2	p. O R R T E t e c u r r e n 8. 4 % ( las hs ) 12 t nt mo	p. 8. 0 %

1) Activity in Portugal: in Sep.18, non‐recurring impacts include gains of 163.3 M.€ from the sale of subsidiaries and the stake in Viacer.

2) BFA contribution in Sep.18 corresponds to the appropriation of BFA results by the equity method.

3) BFA contribution in Sep.19 reflects the dividends related to 2018 attributed to BPI and reversal of deferred tax liabilities (51 M.€).

At the end of 2018, BPI changed the accounting classification of the investment in BFA, from "associated company", consolidated by the equity method, to financial investment, recorded under "investments at fair value through other comprehensive income". Since the 1st January 2019, consolidated net profit ceases to include (by equity method) BPI proportionate share in BFA results.

Net interest income increased 3.4% (yoy)

Gross income in the activity in Portugal

I € M n	S 1 8 e p	S 1 9 e p	 %
i i N t t t e n e r e s n c o m e	3 1 5 2	3 2 6 1	% 3 4 +
f d N i i i t e e e a n c o m m s s o n n c o m e	( 2 0 1. 5	) 1 1 9 2 5	4 5 % ‐
/ ( ) l f l d l b l G i i i i i i i t t a n s o s s e s o n n a n c a a s s e s a n a e s d h i t a n o e r n c o m e	2 4 7	1 1. 7	5 2 6 % ‐
i i R e c r r n g g r o s s n c o m e u	5 4 1. 4	5 3 0 3	2 1 % ‐
i i N t o n r e c u r r n g e m s	( 9 6 5	) 2 ‐	‐
d i G t r o s s n c o m e a s r e p o r e	6 0 0 9	5 3 0 3	% 1 1. 8 ‐

51) In Sep.18, it includes commissions with cards and acquiring and investment banking businesses that were subsequently sold to CaixaBank.2) Gain from the sale of the equity holding in Viacer.

Loan portfolio increased 2.6% ytd

Loans to customers by segments

f l G i i € M t r o s s p o r o o, n	1 8 D e c	S 1 9 e p	Y D t
i d i i d l I. L t o a n s o n a s v u	1 2 5 5 8	1 2 7 3 3	% 1. 4
l M t o r g a g e o a n s	1 1 1 1 7	1 1 1 9 7	0. 1 %
h l i d i i d l O t t e r o a n s o n v u a s	1 3 8 7	1 5 5 4	% 1 2. 0
d l l b I I. L i i t o a n s o c o m p a n e s a n s m a u s n e s s e s	9 2 8 9	9 5 5 3	2. 8 %
b l i I I I. P t c s e c o r u	1 5 4 4	1 7 1 3	% 1 0. 9
h I V O t e r	9 6	9 0	( ) 6. 4 %
l T t o a	2 3 8 4 7	2 0 8 9 4	2. 6 %
N t o e :
f l f i i i L t t t o a n p o r o o n e o m p a r m e n s	2 2 9 9 4	2 3 9 0 5	2. 8 %

Individuals new loan origination and market shares

Agriculture

Activity in strategic segments: January-September 2019

Segment Leadership

• amount of credit granted, IFAP
• number of grant advances, CAP
• total number of accumulated transactions, Agrogarante

Sources:

8

8

Instituto de Financiamento da Agricultura e Pescas (15/04/2019). Confederação dos Agricultores de Portugal (19/10/2018). Agrogarante ‐ Sociedade de Garantia Mútua (30/07/2019).

Official sponsor of the main National Fairs

• Ovibeja (Apr.)
• National Agriculture Fair (Jun.)

8th edition National Agriculture Prize

• Partnership with COFINA and sponsorship of the Ministry of Agriculture, Forestry and Rural Development
• Main national award for the award of a Seal of Trust and Excellence to the best in Portugal, giving visibility, leveraging and valuing portuguese products.

• Complete product and service solutions and specialists teams in the promotion and monitoring

• Specific offering solutions
• Specialists who know the industry
• Structuring more complex operations by a team dedicated to the agricultural sector

Tourism

Activity in strategic segments: January-September 2019

International trade

Activity in priority businesses: January-September 2019

Extended domestic and international network with presence in more than 20 countries (CaixaBank Group)

Dedicated teams at BPI branches and corporate centres and trade finance specialists

BPI financing and risk hedging solutions throughout the entire operating cycle

Partnerships with leading Chambers of Commerce and "Business with the World" event

11.0%

Total customer resources increased 2.2% YtD

Customer resources

I M € n	D 1 8 e c	S 1 9 e p	Y D t
b l h I. O t n‐ a a n c e s e e r e s o u r c e s	2 2 0 5 2	2 2 6 8 5	% 2. 9
d C i t t u s o m e r e p o s s	2 1 1 0 7	2 2 3 3 6	% 5. 8
i i l d f i i l i I t t t t n s u o n a a n n a n c a nv e s o r s d i t e p o s s	9 4 5	3 0 5	‐6 3. 0 %
d I I. A t t s s e s u n e r m a n a g e m e n	9 1 9 1	9 5 7 2	% 4. 1
fu l d M t u u a n s	5 0 8 3	5 0 9 6	% 0. 3
l i iz i i C t t a p a a o n n s u r a n c e	4 1 0 7	4 4 7 5	% 9. 0
f f b l i i I I I. P u c o e r n g s	1 9 5 2	1 6 7 1	% ‐1 4. 4
l T t o a	3 3 9 1 5	3 3 9 2 8	2. 2 %
No te :
l c lu d ing ins i io l To ta to t tu t us me r r es ou rce s, ex c na d f ina ia l inv de i to ts an nc es rs p os	3 2 2 5 0	3 3 5 7 9	% 4. 1

Market shares Aug. 19 Deposits 10.2% 1) Mutual funds 2) 12.7% Capitalisation insurance 2) 15.6%

Retirement savings plans 2)

1) In Jul. 2019.

2) 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.

Digital transformation: increasing utilisation

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

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

Digital transformation: new solutions

More Offer in Digital Channels

• Increase solutions in Savings, Retirement and Investment Funds
• New online Brokerage layout
• Increased limits on Immediate Credit
• Cards order and new features
• Online account opening
• Customer query and update

Open Banking and PSD2

Aggregation of balances and movements and initiation of transfers in other bank's accounts, through the channels BPI App and BPI Net

Factoring in BPI Net Empresas

• Consultations, advance limits, other.
• Consultation of global invoice portfolio
• Current Factoring account balances and movements

Request of invoice advanced payment

New Digital Solutions in Commercial Branches

Exchange of messages and documents between Customers (BPI Net Empresas) and Bank (BPI GoBanking)

Transformation of business relationship management tools

BPI positioning as the bank for businesses

• BPI Commerce segment consolidation that has positioned BPI as the Bank for businesses, very successfully
• BPI Commerce encompasses new products and services, reinforcing the proximity to Clients and the long‐term relationship. With dedicated business managers, BPI Commerce tailors the Bank offering to customer needs
• With the launch of the Commerce segment, the Commerce Value Account and the Commerce TPA were also introduced

BPI positioning as the bank for families

• Continuation of the BPI Family campaign, which places BPI as "A Bank in the Lives of All Families"
• New concept of communication reflected in the different campaigns to be developed during 2019
• BPI Family encompasses the products and services of the individuals banking, strengthening the proximity to customers and the long‐term relationship

Under this concept the following campaigns have already been launched :

BPI Family Conta Valor

BPI Family Seguros

BPI Family Crédito

BPI Family Seguros, until 31/10

Net interest income increased 3.4% (yoy)

Commissions decreased 4.5% yoy

Excluding the effect from sales of the cards, acquiring and investment banking businesses, commissions increased (comparable perimeter) by 15.6 M.€ (+8.8% yoy).

I M € n	S 1 8 e p	S 1 9 e p	Y Y o
k B i i i a n n g c o m m s s o n s	1 2 1. 9	1 1 3. 8	% 6. 7 ‐
l f d M t a n s u u u	3 0. 0	2 0 7.	0. 0 % 1 ‐
I n s u r a n c e	4 9. 6	5 1. 7	4. 3 %
l T t o a	2 0 1. 5	1 9 2. 5	4. % 5 ‐

Recurring operating expenses increased 1.9% yoy

1) Additionally, at Sep.19, BPI had 37 premier centres, 1 mobile branch and 34 corporate centres in Portugal, thus totalling 479 business units.

Cost‐to‐income of 60.0% in Sep. 19

Reversals of loan impairments of 7.6 M.€ and recoveries of 11.0 M.€ (Sep.19 ytd)

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

20 2) In Sep.19 in annualised terms. In the last 12 months up to Sep.19, the cost of credit risk was ‐0.14% of the gross loans and guarantees portfolio.

NPE ratio of 3.2% in September 19

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

21 2) NPE ratio considering the prudential supervision perimeter.

Employees pension liabilities

Employees pension liabilities

€ M	1 8 De c	Ju 1 9 n	Se 1 9 p
l p ice l ia b i l i To ta t s ty as er v	1 6 3 9	1 7 9 6	1 8 8 4
f he fu ds Ne io t a ts t ss e o p en s n n	1 6 1 3	1 7 1 9	1 7 7 4
f c f p l b l io ia i i ie De t g re e o ov er ag e o en s n s	9 8 %	9 6 %	9 % 4
1) fu ds Pe io tu ns n n re rn	5. 5 %	7. 9 %	1 2. 0 %

Actuarial assumptions

	De 1 8 c	Ju 1 9 n	Se 1 9 p
isc D t r te ou n a	2. 0 %	1. 4 5 %	1. 2 0 %
la h Sa t te ry g ro ra w	1. 0 %	1. 0 %	1. 0 %
io h Pe t te ns ns g ro w ra	0. % 5	0. % 5	0. % 5
l i b le M M ta ty ta or : en		/ T V 8 8 9 0
l b le M i W ta ty ta or om en :	T V	/ 8 8 9 0 3 ea rs y –

Actuarial deviations2) in the 3r^d Q.19

	€ M
fro fo l Inc inv io tm t p t om e m es en or	6 0 +
ha he d C in isc t t r te ng e ou n a	( ) 8 5
he O t r	( ) 9
ia l de ia io in Ac 3 Q 1 9 tu t ar v ns	( ) 3 4

1) Non‐annualised return (ytd).

22 2) Recognised directly in shareholders, in accordance with IAS19.

Solid capital position

3)Minimum value in force in June 2021.

Balanced funding structure and comfortable liquidity position

241) Includes short‐term public debt of 0.6 Bi.€ (Portugal), with a residual average maturity of 0.5 years, and medium and long‐term debt of 2.5 Bi.€ (Portugal 28%, Spain 52% and Italy 20%) with an average residual maturity of 1.9 years.

2) Average 12 months, according to EBA guidance. Average amount (last 12 months) of LCR components calculation: Liquidity Reserves (4 242 M.€); Total net outflows (2 427 M.€). 3) In force in June 2021.

Social responsibility | 4

ENVIRONMENT GOVERNANCE Social responsibility lines of action in 2019 that foster BPI's positioning as a Socially Responsible Bank 3 lines of action Companies sustainable finance Environmental diagnosis Environmental and energy efficiency plan Equipment reutilisation Responsible policies Reputational risk management Non financial statement Diversity and inclusion SOCIAL "la Caixa" foundation BPI "la Caixa" Awards Culture and Education Research and Scholarships Support to entrepreneurship and innovation Christmas action

Social Responsibility

Supporting entrepreneurship and innovation

Identify, recognize and accompany young innovative companies

• 300 applications in Portugal, 661 in Spain
• 9 in 37 finalists were Portuguese entrepreneurs in 6 sectorial categories
• Of the 9 Portuguese finalists, 5 were distinguished 2 winners (in Agro Tech and Commerce Tech sectors) 3 finalists (in Health Tech and Fin Tech sectors)
• More than 500 th. euros in awards and training

BPI Women's Entrepreneurial Challenge

International IWEC Awards 2019 (International Women's Entrepreneurial Challenge Foundation)

Recognize the professional success of Portuguese Women and give visibility to women's business leadership

2019 | 2nd edition in Portugal

Initiative launched in 2007 by the Barcelona Chamber of Commerce, with the support of CaixaBank

2019 Winner: Manuela Medeiros Founding‐partner of PARFOIS

Social responsibility | 4

Companies sustainable finance

Signature of letter of commitment Guidelines for accelerating the sustainable finance in Portugal

• Promotion of sustainable investment practices in Portugal, contributing to carbon neutrality by 2050
• Motivate the financial sector to develop financial products that promote companies, institutions and projects aligned with sustainability principles.

"Towards a Sustainable Tourism Industry" conference attendance

• Presentation of environmental and energy efficiency solutions to position Portugal as one of the most competitive and sustainable tourist destinations in the world.
• BPI participates in the "Financial Support Instruments" panel discussion, presenting BPI industry‐specific offering solutions

Decarbonisation and Circular Economy New credit line 100 M€

Modernising and enhancing companies' competitiveness by implementing measures that reduce energy consumption and promote the shift from fossil to renewable energy sources.

Sustainable tourism on debate at BPI meetings with corporates Faro ‐ Vilamoura

Debate on "Sustainable tourism, attracting new markets and combating seasonality"

Social responsibility | 4

2019 BPI "la Caixa" awards

29 Public

recognition

BPI has investment grade ratings for LT debt from Fitch and S&P and for LT deposits from Moody's

/ ( bt d it R ing ) Lon Ter De Iss r C at g m ue re	( / Lon Ter De bt g m ) Iss ing rat ue r … A a2, Aa 1 e Aa a	/ ( bt fa lt ) Lon Ter De Iss De Ra ing t g‐ m ue r u	/ ( bt ing ) Lon Ter De Iss Ra t g‐ m ue r A ( hig h), … A A, A AA A
… A A‐, AA AA AA A + e ,	bo ds Mo Aa 3 rtg ag e n	… A A‐, AA AA AA A + e ,	bo ds ( low ) Mo A A rtg ag e n
A+	A 1	A+	( ) h ig h A
A	A 2	A	k 1 Ba n A
A‐	A 3	A‐	( low ) A
B B B+	De its Ba 1 p os a	k Ba 1 n B B B+	( ) l h ig h Po B B B rtu g a
k 1 Ba l B B B Po rtu n g a	Ba 2 a	B B B l Po rtu g a	k Ba 3 B B B n
B B B‐	l Po k Ba 3 rtu Ba 1 g a n a	B B B‐	k ( low ) Ba 2 B B B n
B B+	k k 3 Ba 1 Ba 2 Ba n n	k 3 Ba B B+ n	( h h ) B B ig
k Ba 2 B B n	Ba 2	k Ba 2 B B n	k Ba 4 B B n
B B‐	3 Ba	B B‐	( ) low B B
B+	B 1	k Ba 4 B+ n	k Ba 5 ( h h ) B ig n
B	2 B	B	B
B‐	B 3	B‐	( low ) B
C C C+	k Ca 1 Ba 4 a n	C C C+	( h h ) C C C ig
… C CC, CC C‐, CC, C e D	k Ba 5 Ca 2 n a Caa 3, Ca e C …	… C CC, CC C‐, CC, C e D	C ( low ), ( hig h), ( low ), … C CC, CC CC CC, CC C ( hig h), C ( low ), C, D
( Lon ter g m de Inv B B B tm t g es en ra ) de bt	( Lon ter g m de Inv Ba 1 tm t g es en ra a ) de its po s	( Lon ter g m de Inv B B B tm t g es en ra ) de bt

S&P (18 Mar.19) upgraded by 1 notch BPI's long‐term debt rating, from BBB‐ to BBB, with stable Outlook

Moody's (24 Jul.19) upgraded Banco BPI's Baseline Credit Assessment (BCA) from ba1 to baa3, reaching investment grade level, and reaffirmed long‐term deposits rating at Baa1 and long‐term debt rating at Ba1. The ratings' outlook is stable.

Fitch (11 Oct.18) upgraded by 1 notch BPI's long‐term debt rating, from BBB‐ to BBB, with stable Outlook. On the 30 Oct.19, Fitch reaffirmed BPI ratings (with stable Outlook).

Investment Grade

Non‐Investment grade

Results in September 2019 ‐ Highlights

31 1) Includes the net income in September 2019 assuming a dividend payout corresponding to the upper limit of the dividend policy, and net of the free reserves distributed, subject to approval by the supervisor.

Results in 30 September 2019

(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 activity in Portugal

(unaudited)

Annexes

	Se 1 8 p			Se 1 9 p			 %
In M €	As	No n	l. n Ex c on	As	No n	l. n Ex c on	l. n Ex c on
	d te re p or	1) re cu rr.	re cu rr.	d te re p or	2) re cu rr.	re cu rr.	re cu rr.
in inc Ne t te t re s om e	3 1 5. 2		3 1 5. 2	3 2 6. 1		3 2 6. 1	% 3. 4
de d D iv i inc n om e	1. 7		1. 7	2. 4		2. 4	3 8. 1 %
d Eq i inc ty te u ac co un om e	1 3. 2		1 3. 2	1 5. 6		1 5. 6	1 8. 1 %
fe d c Ne iss io inc t e a n om m n om e	2 0 1. 5		2 0 1. 5	1 9 2. 5		1 9 2. 5	‐4 5 %
/ ( ) f Ga ins los ina ia l a d l ia b i l i ies d o he ts t t se s on nc ss e an a n r	8 5. 1	9. 6 5	2 6 5.	2. 8		2. 8	‐8 9. % 1
he ing inc d e O t t r o p er a om e a n xp en se s	( ) 1 5. 8		( ) 1 5. 8	( ) 9. 0		( ) 9. 0	% 4 3. 0
inc Gr os s om e	6 0 0. 9	5 9. 6	5 4 1. 4	5 3 0. 3		5 3 0. 3	‐2 1 %
f f e S ta xp en se s	( ) 1 8 7. 9	( ) 7. 6	( ) 1 8 0. 3	( ) 1 8 2. 8	( ) 0. 0	( ) 1 8 2. 8	1. 4 %
he dm O in is ive t tra t r a ex p en se s	( ) 1 3 3. 1		( ) 1 3 3. 1	( ) 1 1 3. 4		( ) 1 1 3. 4	‐1 4. 8 %
ia io d isa io De t t t p re c n a n am or n	( ) 1 6. 9		( ) 1 6. 9	( ) 0. 3 4		( ) 0. 3 4	1 3 9. 1 %
ing Op t er a ex p en se s	( ) 3 3 7. 9	( ) 7. 6	( ) 3 3 0. 3	( ) 3 3 6. 5	( ) 0. 0	( ) 3 3 6. 5	% 1. 9
ing inc Ne t o t p er a om e	2 6 3. 1	5 2. 0	2 1 1. 1	1 9 3. 8	( ) 0. 0	1 9 3. 8	‐8 2 %
los d o he Im irm is io t t p a en se s a n r p ro v ns	2 7. 5		2 7. 5	1 8. 5		1 8. 5	3 2. 8 %
d los he Ga ins in t ts a n se s o r a ss e	5 7. 0	5 7. 8	( ) 0. 7	2. 2		2. 2	3 9 6. 6 %
be fo Ne inc inc t ta om e re om e x	3 4 6 7.	1 0 9. 8	2 3 8 7.	2 1 4. 4	( ) 0. 0	2 1 4. 4	‐9 8 %
Inc ta om e x	( ) 8 7. 4	( ) 1 3. 8	( ) 7 3. 6	( ) 6 1. 7	0. 0	( ) 6 1. 7	% ‐1 6. 2
inc fro in ing io Ne t t t om e m co n u o p er a ns	2 6 0. 2	9 6. 0	1 6 4. 2	1 5 2. 7	( ) 0. 0	1 5 2. 8	% ‐7 0
fro d d o Ne inc isc in io t t t om e m on ue p er a ns	6 4. 2	6 4. 2	( ) 0. 0
inc Ne t om e	3 2 4. 4	1 6 0. 2	1 6 4. 2	1 5 2. 7	( ) 0. 0	1 5 2. 8	‐7 0 %

1) Non recurring impacts in Sep. 2018: gain of 163.3 M.€ with the sale of subsidiaries and the stake in Viacer, cost of 5.5 M.€ after taxes with early retirements (7.6 M.€ before taxes) and net income from discontinued operations of 2.5 M.€.

2) Non recurring impacts in Sep. 2019: costs with early retirements.

Annexes

Consolidated income statement

(unaudited)

In M. €	Se 1 8 p	Se 1 9 p
Ne int inc t st ere om e	3 1 5. 2	3 2 6. 1
iv i de d inc D n om e	1. 7	4 8. 4
ity d inc Eq te u ac co un om e	2 4 6. 4	3 1. 4
fee d c Ne iss ion inc t an om m om e	2 0 1. 5	1 9 2. 5
/ ( ) f Ga ins los ina ia l a d l ia b i l it ies d o he ts t se s on nc sse an an r	3 7 7.	( ) 2 5.
he ing inc d e Ot t r o p era om e a n xp en se s	( ) 1 5. 8	( ) 1 3. 6
inc Gr os s om e	8 2 6. 4	5 7 9. 5
f f e Sta xp en se s	( ) 1 8 9 7.	( ) 1 8 2. 8
f w h ic h: ing f f e O Re st cu rr a xp en se s	( ) 1 8 0. 3	( ) 1 8 2. 8
1) No ing sts n‐r ec ur r co	( ) 7. 6	( ) 0. 0
he dm Ot in ist ive rat r a ex p en se s	( ) 1 3 3. 1	( ) 1 1 3. 4
iat ion d a isa ion De rt t p rec an mo	( ) 1 6. 9	( ) 4 0. 3
ing Op t era ex p en se s	( ) 3 3 7. 9	( ) 3 3 6. 5
Ne ing inc t o t p era om e	4 8 8. 5	2 4 3. 0
irm los d o he is ion Im t t p a en se s a n r p rov s	2 7. 7	1 8. 5
d los he Ga ins in ot ts an se s r a sse	5 7. 0	2. 2
be fo Ne inc inc t ta om e re om e x	5 7 3. 3	2 6 3. 6
Inc e t om ax	( ) 1 0 8. 4	( ) 1 0. 1
inc fro inu ing ion Ne t nt t om e m co o p era s	4 6 4. 9	2 5 3. 6
fro d d o Ne inc isc inu ion t t t om e m on e p era s	6 4. 2
inc Ne t om e	2 9. 5 1	2 3. 6 5
	Se 1 8 p	Se 1 9 p
ha ( ) Ea ing € rn s p er s re	0. 3 6	0. 1 7
( ) inc fro inu ing ion Ne € t nt t om e m co o p era s	0. 3 2	0. 1 7
fro d d o ( ) Ne inc isc inu ion € t t t om e m on e p era s	0. 0 4
ht d n f s ha ( l l ) Av ig in i ion era g e w e e r. o res m s	1 4 5 7	1 4 5 7

1) Costs with voluntary terminations and early retirements.

Annexes

Consolidated balance sheet

In M .€	De c 1 8	Sep 19
AS SET S
h a nd h b ala al b ank nd oth de nd de Cas its s at ntr cas nce ce s a er ma pos	2 4 52. 9	1 4 24. 5
ial he ld f rad fa alu hro h p rof r lo nd at f Fin ing ir v it o air ets or t , at e t anc ass ug ss a
val thr h o the reh siv e in ue ou g r co mp en com e	2 3 30. 5	2 3 98. 4
Fin ial ise d c ets at ort ost anc ass am	25 671 .9	26 989 .2
Of wh ich :
Loa Cu to sto ns me rs	22 949 .1	23 590 .4
in jo int d a cia Inv est nts ntu tes me ve res an sso	209 .1	248 .2
ible Tan set g as s	67. 3	138 .8
ibl Int ts ang e a sse	55. 1	56. 6
Tax set as s	352 .8	319 .1
nd dis al g cla ssif ied he ld f sal No ent set n‐c urr as s a pos rou ps as or e	33. 9	24. 5
Oth ets er ass	394 .5	340 .0
Tot al a ts sse	31 568 .0	31 939 .3
LIA BIL ITIE S
ial liab ilit he ld f Fin ies rad ing or t anc	141 .3	180 .9
ial liab ilit d c Fin ies ise at ort ost anc am	27 515 .7	27 454 .1
ral ks a nd dit De its ‐ C Ban Cre Ins titu tio ent pos ns	3 2 06. 3	2 6 23. 9
De its ‐ C ust pos om ers	22 960 .3	23 175 .5
hn l pr Tec ica ovi sio ns
bt s ued De riti iss ecu es	1 1 18. 2	1 3 55. 6
du ubo rdi ed liab ilit Me m i ies tem nat mo ran s: s	304 .5	300 .3
Oth fin ial liab ilit ies er anc	231 .0	299 .0
Pro vis ion s	65. 5	43. 4
lia bil Tax itie s	73. 8	19. 0
Lia bil itie s in clu de d in dis al g cla ssi fie d a s h eld fo le pos rou ps r sa	0.0	0.0
Oth liab ilit ies er	565 .7	720 .1
al L iab ilit ies Tot	28 362 .1	28 417 .5
Sha reh old ' eq uit ibu tab le t he sha reh old of ttr o t BP I ers y a ers	3 2 06. 0	3 5 21. 9
rol ling int No ont sts n c ere	0.0	0.0
Tot al S har eh old ' eq uit ers y	3 2 06. 0	3 5 21. 9
' eq Tot al l iab ilit ies d S har eh old uit an ers y	31 568 .0	31 939 .3

(unaudited)

Consolidated profitability and efficiency metrics

(unaudited)

Annexes

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

	Se 8 1 p	Se 9 1 p
/ inc Gr A T A os s om e	% 3. 6	% 2. 4
/ 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	% 2. 8	% 1. 1
/ 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	2 8. 2 %	0. 9 % 1
/ f f e 1 S Gr inc ta xp en se s os s om e	2 1. 8 %	3 1. 5 %
/ 1 Op ing Gr inc t er a ex p en se s os s om e	4 0. 0 %	5 8. 1 %
( ) de i io Lo t to ts t an s ne p os ra	0 % 1 7	0 % 1 4

1) Excluding early‐retirement costs.

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

	Se 1 8 p	Se 1 9 p
fo ( ) No ing N P E io t n‐ p er rm ex p os ur es ra	3. 8 %	3. 2 %
by d l la ls im irm N P E c ts te ov er p a en an co ra	1 2 6 %	1 2 4 %
2) f fo bo lu de d Ra io inc in N P E t t o r rn e n o	1. 0 %	0. 4 %

2) Forborne according to EBA criteria and considering the scope of prudential supervision. On 30 Sep. 2019, the forborne was 640 M.€ (forborne ratio of 1.9%), of which 140 M.€ was performing loans (0.4% of the gross credit exposure) and 500 M.€ was included in NPE (1.5% of the gross credit exposure).

Annexes

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

Profit & loss account (Sep. 19)

In i l l ion f e ( M. € ) m s o uro	Se 19 p. ort ed by rep BP I	Con sol idat ion , st and ard isat ion Se 19 BP I p. and t ch e in FV ne ang ntr ibu tio n t co o adj ust nts de rive d fr the me om CA G BK rou p bina tion of bus ines com ses		BP I t se gm en	Inv tm ts es en t se gm en
Ne t in in ter est com e	32 6	( ) 21	30 5	30 8	( ) 3
ide nd Div s	48		48		48
uit d i Eq te y a cco un nco me	31	( ) 2	29	15	14
fee nd iss ion Ne t s a co mm s	19 3		19 3	19 3
din Tra inc g om e	( ) 5	15	10	14	( ) 4
he e & Ot ing in rat r o pe com ex pe nse s	( ) 14	( ) 4	( ) 18	( ) 18
Gr in oss com e	9 57	( ) 12	56 7	2 51	55
Rec ing tin urr op era g e xpe nse s	( ) 33 6	( ) 12	( ) 34 8	( ) 34 8
rdi Ext tin rao na ry op era g e xpe nse s
‐im irm t in Pre pa en com e	24 3	( ) 24	21 9	16 4	55
Pre ‐im irm t in it ho rdi ut ext pa en com e w rao na ry ex pe nse s	24 3	( ) 24	21 9	16 4	55
lo nd he Im irm isio ent ot pa sse s a r p rov ns	18	46	64	64
/ los di ls & he Ga ins ot ses on spo sa rs	3		3	3
x i Pre ‐ta nco me	26 4	22	28 6	23 1	55
Inc e t om ax	( ) 10	( ) 2	( ) 12	( ) 59	47
fit for he rio d Pro t pe	25 4	20	27 4	17 2	10 2
Mi rity in s & he ter est ot no r
Ne t in com e	25 4	20	27 4	17 2	10 2

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(Sep. 19)

Se 1 9 p. In m illio of e ( M.€ ) ns uro	Re rte d b po y BP I	Adj ust nts me	BP I co ntr ibu tio n t o ( ) CA BK G BP I se ent rou p gm
Loa d a dv s t ust et ns an an ce o c om ers , n	23 59 0	( ) 40 6	23 18 4
l cu fun ds To ta sto me r	33 92 8	( ) 4 4 76	29 45 2

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 September 2019 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 September 2019, 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
td y	Yea ‐da 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 rke M Ma 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
TLT RO	ted lon fin ing tio Tar ‐te ge ger rm re anc op era ns
LCR	uid Liq ity io rat cov era ge

Units, conventional signs and abbreviations

	ABPI Grupo > CaixaBar
--	-----------------------

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 September 2019) with the structure used in the financial statements and respective notes of the 2018 Annual Report.

Consolidated income statement

ed in t he ults ' Pr tion Str Res uct nta ure us ese	Sep 19	Sep 19	ted in the fin ial nd tive Str uct sta tem ent tes ure pre sen anc s a res pec no
t in t i Ne ter es nco me	326 .1	326 .1	t in t i Ne te res nco me
Div i de nd i nco me	48 .4	48. 4	Div i de nd i nco me
Equ i ed i ty a unt cco nco me	31. 4	31. 4	t/ ( ) o Sha f p rof i los f e nti tie ed for i the ui tho d unt ty m re o s s a cco us ng eq e
t fe nd Ne mi sio n i e a com s nco me	192 .5	209 .8	nd Fee mi si inc a com s on om e
		(17 .3)	nd Fee mi si a com s on exp en ses
/ i ( l ) o n f ina nci al nd lia bil i tie nd oth Ga ts a ns os ses a s se s a e r	(5. 2)	( ) 0.3	/ i ( l ) o n d i tio f fi nci al nd lia bil i tie d a t fa i lue th h p rof i r lo Ga ts a ot t o t ns os ses e rec ogn n o na a s se s n me a s ure r va rou g ss, ne
		(1. 0)	/ ( ) o Ga i l n f ina nci al nd lia bil i tie s h eld fo din ts a r tr t ns os ses a s se a g, n e
		( ) 8.8	/ ( l ) o n f al de ted fo ad l ly m ed t fa l thr h p rof r l Ga i ina nci sig i ori i i ts n ot r tr t o et ns os ses a s se na ng com pu s ea sur a r va ue oug os s, n
		3.3	/ ( l ) fro m h edg Ga i ing unt t ns os ses e a cco , ne
		1.5	n/ ha di ffe (ga i los ), n Exc et nge ren ces s
Oth ti inc nd er op e ra ng om e a exp en ses	(1 ) 3.6	25. 3	Oth ti inc er op e ra ng om e
		( 9) 38.	Oth ti er op e ra ng exp en ses
ss i Gro nco me	579 .5	579 .5	GR OS S IN CO ME
Sta ff e xpe nse s	(1 82. 8)	(1 82. 8)	Sta ff e xpe nse s
Oth dm ini tive tra er a s ex pe nse s	(11 ) 3.4	(11 ) 3.4	Oth dm i ni tive tra er a s ex pe nse s
nd De cia tio i tio ort pre n a am sa n	(4 ) 0.3	(4 ) 0.3	nd De cia tio i tio ort pre n a am sa n
ting Op era ex pen ses	( .5) 336	( .5) 336	Adm inis tive dep iati and isat ion tra ort ex pen ses rec on am ,
ting inc Net op era om e	243 .0	243 .0
Im i l d o the i sio nt pa rme os ses an r p rov ns	18 .5	2.0	l of Pro vi si ovi sio on s o r re ve rsa pr ns
		16. 5	nt/ (re ) o Im i l f im i l fi nci al d a t fa i lue th h p rof i r lo nt ts n ot t o pa rme ve rsa pa rme os ses on na as se me as ure r va rou g s s
nd l he Ga i in ot ts ns a os ses r a s se	2.2	1.0	nt ( al ) o f im ubs idi nd Im i i in s rie s jo int oci nt ntu tes pa rme rev ers pa rme a ve res a as s a
		1.7	nt/ (re l ) o f im ‐fi al Im i i nci nt o ts pa rme ve rsa pa rme n n on na a s se
		(1.5 )	/ Ga i ( l ) o n d i tio f n fi nci al ts, t ns os ses e rec ogn n o on‐ na a s se ne
		1.0	fi t/ ( ) fro fie fo fy Pro los nd di sal cla si d a s h eld le ali ing s d i ti d o tio nt a ts a not s m n on ‐cu rre s se spo gro ups s r sa qu a s con nue pe ra ns
e b efo Net inc re i tax om nco me	263 .6	263 .6	/ (L S) B PRO FIT OS EFO RE TAX FR OM CO NT INU ING OP ERA TIO NS
Inc e t om ax	(1 ) 0.1	(1 ) 0.1	la ted ofi r l s fr Tax i nti nui tio to t o ex pe nse or nco me re pr os om co ng op e ra ns
Net inc e fr ntin uin atio om om co g o per ns	253 .6	253 .6	/ PRO FIT (L OS S) A AX OM CO NT INU ING OP ERA TIO NS FTE R T FR
e f Ne t in di tin ued tio com rom s con op e ra ns	0.0	0.0	fi t/ ( los ) a fte x fr Pro di tin ued tio r ta s om s con op e ra ns
but ble rol lin Inc ttri int to ont ts om e a a no n‐c g e res	0.0	0.0	fi t/ ( los ) for th od but ble rol lin Pro eri ttri int to ont ts s e p a a no n‐c g e res
inc Net om e	253 .6	253 .6	/ (L S) F PRO FIT OS OR TH E P ERI OD AT TRI BU TAB LE T O O WN ERS OF TH E P AR ENT

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

Adjusted Operating expenses = Staff expenses excluding cost with early retirements and voluntary terminations and (only in 2016) gains with the revision of the Collective Labour Agreement (ACT) + Other administrative expenses (recurring) + Depreciation and amortisation ‐ Income from services rendered to CaixaBank Group (recorded in "Other operating income and expenses"

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

Adjusted Operating expenses‐to‐commercial banking gross income 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 in "Other operating income and expenses" / Commercial banking gross income

Return on Equity (ROE) 1) = Net income for the period / Average value in the period of shareholders' equity attributable to BPI shareholders after deduction of the fair value reserve (net of deferred taxes) on financial assets available for sale

Return on Tangible Equity (ROTE) 1) = Net income for the period / Average value in the period of shareholders' equity attributable to BPI shareholders after deduction of intangible net assets and goodwill on 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

40

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 / variable rate bonds and structured products placed with Customers + Deposits certificates + Subordinated bonds placed with Customers)
• 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) + 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

41

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 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 the loan portfolio 1)= (Impairments and provisions for loans and guarantee ‐ 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) according to 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 collateral = [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 NPE ] / Non‐performing exposures (NPE)

Non performing loans ratio ("crédito duvidoso"; 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 collateral = [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 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