Banco Comercial Portugues

Investor Presentation • Jul 29, 2019

1H19 Banco BPI Consolidated results

29 July 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 1st half 2019 Net income in Portugal and in the consolidated Consolidated net profit of 134.5 M.€ in the 1st half 2019 (‐63%(1) yoy) Recurring net profit in Portugal of 86.9 M.€ in the 1st half 2019 (‐17% yoy) Non‐performing exposures ratio – NPE (EBA definition) of 3.3% in June 2019 Coverage by impairments and collateral of non‐performing exposures (NPE) of 126% High asset quality Fully loaded capital ratios: CET1 of 13.4%2) and total capital of 15.2%2) Fully loaded leverage ratio 7.3%2) Strong capitalisation Customer deposits grow 1 084 M.€ (+5.1% ytd) Loans to companies in Portugal grow 1.5% ytd; Loan portfolio grows 336 M.€ (+1.4% ytd) Growth in Customer resources and credit in Portugal Rating of long term debt at investment grade (BBB) by Fitch and S&P Moodys' upgraded Banco BPI's Baseline Credit Assessment (BCA) to investment grade (baa3) and reaffirmed deposits rating at investment grade (Baa1) BPI ratings

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

Significant positive non‐recurring impacts were booked in the 1st half of 2018 (+118 M. €) in activity in Portugal;

The consolidated net profit for the 1st half 2018 reflects the appropriation of BFA's results by equity method, whereas in the 1st half 2019 it only reflects BFA's dividends, following the change in the accounting classification of the investment in BFA at the end of 2018.

2) Includes the net income for the 1st half net of dividends according to the upper limit of the dividend policy, subject to approval by the supervisory entity.

Consolidated net profit of 134.5 M.€ in 1H 19

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

1) In the 1H 18 reflects the appropriation of BFA's results by equity method.

2) In the 1H 19 reflects BFA dividends attributed to BPI relative to the 2018 financial year.

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.

3) In 1H 18, non‐recurring impacts include a 121.3 M.€ gain with the sale of BPI Gestão de Ativos, BPI GIF and the equity holding in Viacer.

Net interest income increases 3.7% (yoy)

In M €	1s H. 1 8 t	1s H. 1 9 t	 %
Re in Gr in cu rr g os s co m e
Ne in in t te t re s co m e	2 0 7. 2	2 1 4. 8	3. 7 % +
fe d Ne iss io in t e an co m m n co m e	( 1 3 4. 6	) 1 1 2 7. 2	5. 6 % ‐
/ ( lo ) f l a d l b l d Ga in in ia ia i i ie ts t s ss es on an c ss e a n s a n he in t o r co m e	1 3. 5	‐2 1	1 1 % 5. 5 ‐
Re in Gr in cu rr g os s co m e	3 5 5. 3	3 3 9. 8	4. 3 % ‐
No in i te n re cu rr g m s	( 5 9. 6	) 2 0. 0	1 0 0. 0 % ‐
d Gr in te os s co m e as re p or	4 1 4. 9	3 3 9. 8	1 8. 1 % ‐

1) In 1H 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 increases 1.4% ytd

Loans to Customers by segments

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

Increase in market share

Corporate and Small Businesses loan portfolio 1)

1) Loans to resident non‐financial corporations. Source: BPI and Bank of Portugal.

Commercial activity | 2

Activity in strategic segments and priority businesses

• were Portuguese entrepreneurs.
• Of the 9 Portuguese finalists, 5 were distinguished: 2 winners (in Agro Tech and Commerce Tech sectors) and 3 finalists (Health Tech and Fin Tech)

Activity in strategic segments and priority businesses

Commercial activity | 2

Individuals new loans origination and market shares

Car Finance Personal Loans

Total Customer resources increase 2.7% YtD

Customer resources

€ I M n	d 8 1 e c.	j 9 1 u n.	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 9 2 0	3. 9 %
d C i t t u s o m e r e p o s s	2 1 1 0 7	2 2 1 9 2	5. 1 %
l d f l i i i i i I t t t t n s u o n a a n n a n c a n v e s o r s d i t e p o s s	9 4 5	7 2 8	‐2 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 4 0 9	2. 4 %
l f d M t u u a u n s	5 0 8 3	5 0 6 8	‐0 3 %
l C i i i i t t a p a s a o n n s u r a n c e	4 1 0 7	4 3 4 1	% 5. 7
b l i f f i I I I. P u c o e r n g s	1 9 5 2	1 7 7 2	9. 2 % ‐
l T t o a	3 3 1 9 5	3 1 0 0 4	2. % 7

May 19 Deposits 10.3% 1) Mutual funds 2) 14.5% Capitalisation insurance 2) 15.4% PPR's 2) 10.8% Market shares

1) In April 2019.

2) The PPR's include PPR in the form of mutual funds and capitalization insurance. For this reason, these PPRs are excluded in the calculation of the mutual funds and Capitalization Insurance market shares.

Digital Transformation: increasing use

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

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

Digital Transformation: new solutions

l i O n n e i A O t c c o u n p e n n g	l b k i O n n e r o e r a g e N L t e w a y o u	M B W a y O i N t e w p o n s	d d i i l i i A F t t o n a n c o n s n u l P L e r s o n a o a n s in he im In t t  c re a s g m ax u m a m ou n f d d im ia i t t o m e e c re b l f e ly i i i Po ty t  s s o a r re p ay m e n s hr h B P I Ne B P I Ap t t ou g o r p
f in in im l i ie d Ac t  c ou n o p e n g a s p h d ho i i ize t t t w ay w c n c a r p o s lo d d d l l i u p a a n v e o c a	d f he Re ig t t  e s n o e n ry p a g e s, lu d k, d d in in S E T Fs Bo t c g o c a n n s Q t u o e s f o d io d d d h A t t t  a p a n o r e rs a n e p l io t t c o ns a n p a g e s u	f b ip io Su M B W A Y t  s c r n o fro he Bo t  rro w m o ne y m o r u s e rs f d No i ic io Ac iv i t t t ty  a ns a n

BPI positioning as the Bank for businesses

• Launch of the BPI Commerce segment, which positions BPI as the Bank for businesses.
• New concept of communication and positioning with the appointment of dedicated business managers focused on tailoring the Bank's offer to the Customers' needs
• BPI Commerce encompasses new products and services, reinforcing the proximity to Clients and the long‐term relationship
• With the launch of the Commerce segment, it were launched the Commerce Value Account and the Commerce TPA

Crédito

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 have already been launched the following campaigns:

Conta Valor

BPI Family

BPI Family

Seguros

BPI Family

Social Responsibility

New awards BPI "la Caixa" in 2019

Two new awards were launched to support childhood and social actions in rural communities1:

Social Equality Initiative

Launch of a joint initiative of BPI and "la Caixa" Foundation, in partnership with Nova SBE, which aims to boost the social sector in Portugal with a long‐term perspective.

Execution of 9 social transformation projects in Portugal

• Annual Report "Social Balance of the Country"
• Database and Website on the Social Sector in Portugal
• Training in management control of social organizations
• Leapfrog Social Acceleration Program (valorisation and business development of social organizations)
• Chairs in Impact Intelligence and Responsible Finance
• Fintech Initiative (research and training)
• Data Science for Social Good

Impact evaluation of the 9‐years BPI Solidarity Awards

1) In total there are 5 BPI "la Caixa" Awards, in the amount of 3.75 M.€ corresponding to 750 thousand euros per Prize.

Public recognition

Results and balance sheet – activity in Portugal | 3

Net interest income increases 3.7% (yoy)

Results and balance sheet – activity in Portugal | 3

Commissions decrease 5.6% yoy

Net fee and commission income, M.€

Excluding the effect from sales of the cards, acquiring and investment banking businesses, commissions increase (comparable perimeter) by 10.6 M.€ (+9.1% yoy).

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

Recurring operating expenses increase 4.6% yoy

1) Additionally, at Jun.19, BPI had 37 premier centres, 1 mobile branch and 36 corporate centres in Portugal, thus totalling 486 business units.

Regulatory costs and income tax

	l R t t e g u a o r y c o s s
	M €	2 4 6	6. 7 % + 2 6. 2		A N N U A L C O S T 3 4 1 M €
	i d D G Fu t t e p o s u a r a n e e n 1) ( hs ) 2 1 t m o n	0 0 3	0. 0 3
l R t e g u a o r	l lu d i i N R Fu t t a o n a e s o o n n ) 1 ( hs ) 1 2 t y m o n	5. 5	0 7.		7. 0 M €
t c o s s 2 6 2 M b ke d he in t o o	i l lu i d S R Fu t n g e e s o o n n € 1 ) ( hs ) 2 1 t m o n	1 1. 8	1 1. 3		1 1. 3 M €
ha l f 1s 2 0 1 9 t	d b Ex i C i i t t t r a o r n a ry o n r o n u 2) ( ) f k i d B S t o a n n g e c o r a c c ru e	7. 3	9 7.	9 € 7. M + ( ) in d ha l f 2n	1 5. 8 M €
		1 1 H S 1 1 8 8	1 1 H S 1 1 9 9
	I t n c o m e a x ( l. d bu ) in i io t t t ex c ex ra o r a ry c o n r n	3 6. 6 M €	3 3. 1 M €

1) Annual contribution; recorded in the caption "Other operating income and expenses".

2) Recorded in the caption "Income tax".

Results and balance sheet – activity in Portugal | 3

Cost‐to‐income of 61% in Jun. 19

Results and balance sheet – activity in Portugal | 3

Reversals of loan impairments of 4.9 M.€ and recoveries of 5.9 M.€ in 1H 19

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

2) In 1H 19 in annualised terms. In the last 12 months up to Jun.19, the cost of credit risk was ‐0.18% of the gross loans and guarantees portfolio.

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

2) NPE ratio considering the prudential supervision perimeter.

Employees pension liabilities

Employees pension liabilities

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

Actuarial assumptions

	3 1 De 1 8 3 c.	1 M 1 9 ar	3 0 Ju 1 9 n.
isc D t r te ou n a	2. 0 %	1. 7 5 %	1. 4 5 %
lar h Sa t te g ro ra y 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 b le: i M M ta ty ta or en		/ V 8 8 9 0 T
l b le: M i W ta ty ta or om en	T V 8	/ 8 9 0 – 3 y ea rs

Actuarial deviations2) in the 2n^d Q. 19

	€ M
fu ds io in Pe ns n n co m e	6 8 +
ha he d C in isc t t r te ng e ou n a	( ) 9 4
he O t r	( ) 9
ia l de ia io in d Ac 2n Q 2 0 1 9 tu t te ar v ns ua r r	( ) 3 6

Jun.19; ytd1)

Pension funds return

1) Non‐annualised return (ytd).

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

Solid capital position 9.25% Total capital ratio 14.0% 15.5% Tier 1 ratio 12.3% 13.8% Leverage ratio 6.8% 7.3% 10.75% 12.75% 3.0%3) In 2019 15.2% (2) 13.4% (2) 7.3% (2) Main impacts in 1H 19: Organic generation +0.39 p.p. Pension funds ‐0.28 p.p. Regulatory increase of the risk weighting for real estate operations ‐ 0.14 p.p. 12.3% 13.8% 13.4% Dez.17 Dez.18 Jun.19 2) Dec.18 Dec.17 1) Consolidated ratios Common Equity Tier 1 ratio Capital requirements (SREP) (2)

1) Considering the actual distribution of dividends relative to the 2018 financial year.

2) Includes the net income for the 1st half net of dividends according to the upper limit of the dividend policy, subject to approval by the supervisory entity.

3) Minimum value in force in June 2021.

Results and balance sheet – activity in Portugal | 3

Balanced funding structure and comfortable liquidity position

Customer resources constitute the main source of financing of the balance sheet (74% of assets)

1) Includes short‐term public debt of 0.8 Bi.€ (Portugal), with a residual average maturity of 0.6 years, and medium and long‐term debt of 2.5 Bi.€ (Portugal 27%, Spain 53% and Italy 20%) with an average residual maturity of 2.1 years.

2) Average 12 months, according to EBA guidance. Average amount (last 12 months) of LCR components calculation: Liquidity Reserves (4 082 M.€); Total net outflows (2 442 M.€).

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

nd … A A‐, AA AA AA A + a ,	3 bo ds Aa Mo rtg ag e n	… A A‐, AA AA nd AA A + a ,	( lo ) A A bo Mo rtg ag e w
A+	A 1	A+	( ) h ig h A
A	A 2	A	k Ba 1 n A
A‐	A 3	A‐	( ) low A
B B B+	its De Ba 1 p os a	k Ba 1 n B B B+	( h h ) B B B ig
k Ba 1 l Po B B B rtu n g a	Ba 2 a	B B B l Po rtu g a	k 3 l Ba B B B Po rtu n g a
B B B‐	l Po k Ba 3 rtu Ba 1 g a n a	B B B‐	k ( ) Ba 2 low B B B n
B B+	k k Ba 3 Ba 2 Ba 1 n n	B B+	( h h ) B B ig
k Ba 2 B B n	Ba 2	k 2 k 3 Ba Ba B B n n	k Ba 4 n B B
B B‐	Ba 3	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 ( low ) B ( h h ) C C C ig
B‐	k Ba 4 B 3 n	B‐
C C C+	Ca 1 a	C C C+
… C CC, CC C‐, CC, C a nd D	k Ca 2 Ba 5 n a Caa 3, Ca and C …	nd … C CC, CC C‐, CC, C a D	C ( low ), ( hig h), ( low ), … C CC, CC CC CC, CC C ( h), C ( ), hig C, low D

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

Results in the 1st half 2019 ‐ Highlights

1)Includes the net income for the 1st half net of dividends according to the upper limit of the dividend policy, subject to approval by the supervisory entity.

Results in the 1st half 2019

(unaudited accounts)

• 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

	1st	l f 2 Ha 01 8		l f 2 1st Ha 01 9			
In M. €	d	No l. n Exc n on 1) rec urr rec urr			No n	l. n Exc on	l. n Exc on
	As rte re po		d As rte re po	2) rec urr	rec urr	rec urr
Ne t in in ter est co me	20 7.2		20 7.2	21 4.8		21 4.8	3.7 %
de d Div i inc n om e	1. 5		1. 5	2. 3		2. 3	53 .2%
d Eq ity inc te u ac co un om e	8. 4		8. 4	9. 8		9. 8	16 .0 %
fee d c Ne mi ion in t an om ss co me	13 4.6		13 4.6	12 7.2		12 7.2	‐5. 6 %
/ ( los ) o fin l as d lia b liti d o he Ga ins ia i set t ses n an c s a n es an r	78 .9	59 .6	19 .4	( ) 1.7		( ) 1.7	‐10 8.7 %
he d e Ot ing in rat r o pe co me an xp en ses	( ) 15 .8		( ) 15 .8	( ) 12 .4		( ) 12 .4	21 .0 %
Gr inc oss om e	41 4.9	59 .6	35 5.3	33 9.8		33 9.8	‐4. 3 %
Sta f f e xp en ses	( ) 12 6.8	( ) 7.6	( ) 11 9.2	( ) 12 2.2	( ) 0.0	( ) 12 2.2	2.5 %
Ot he dm ini ive str at r a ex pe nse s	( ) 84 .4		( ) 84 .4	( ) 75 .4		( ) 75 .4	‐10 .7%
iat ion d a rtis ion De at pre c an mo	( ) 10 .4		( ) 10 .4	( ) 26 .2		( ) 26 .2	% 15 1.7
Op ing t era ex pe nse s	( ) 22 1.7	( ) 7.6	( ) 21 4.1	( ) 22 3.9	( ) 0.0	( ) 22 3.9	4.6 %
ing inc Ne t o rat pe om e	19 3.2	52 .0	14 1.2	11 5.9	( ) 0.0	11 6.0	% ‐17 .9
los d o he Im irm is ion t t pa en ses an r p rov s	11 .1		11 .1	10 .7		10 .7	% 3.7
d los he Ga ins in ot ts an ses r a sse	( ) 0.7		( ) 0.7	1. 2		1. 2	27 5.4 %
inc be for inc Ne t e t om e e om ax	20 3.7	52 .0	15 1.7	12 7.8	( ) 0.0	12 7.8	‐15 .7%
Inc e t om ax	( ) 45 .4	2. 1	( ) 47 .4	( ) 41 .0	0. 0	( ) 41 .0	‐13 .7%
fro Ne inc inu ing ion t nt t om e m co op era s	15 8.3	54 .1	10 4.2	86 .9	( ) 0.0	86 .9	‐16 .6 %
fro d d o Ne t in isc tin ion rat co me m on ue pe s	64 .2	64 .2
bu b le t l lin Inc i int ttr ta ntr sts om e a o n on ‐co o g ere
Ne inc t om e	22 2.5	11 8.3	10 4.2	86 .9	( ) 0.0	86 .9	‐16 .6 %

1) Non recurring impacts in 1st Half 2018: gain of 59.6 M.€ with the sale of the stake in Viacer, gain of 61.8 M.€ with the sale of BPI Gestão de Ativos and BPI GIF, 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 1st Half 2019: costs with early retirements. (unaudited)

Consolidated income statement

In M .€	Jun .18	Jun .19
Ne t in in ter est com e	20 7.2	21 4.8
Div ide nd inc om e	1.5	48 .3
ity d i Equ nte acc ou nco me	17 1.7	20 .2
t fe nd Ne mi ssi in e a com on com e	13 4.6	12 7.2
/ ( los ) o n f al a nd liab ilit d o the Ga ins ina nci ies ts a ses sse an r	73 .8	( ) 6.3
he nd Ot ing in rat r o pe com e a ex pe nse s	( ) 15. 8	( ) 17. 0
Gr in oss com e	57 3.0	38 7.1
Sta ff e xp en ses	( ) 126 .8	( .2) 122
Of wh ich rin taf f e : Re cur g s xp en ses	( .2) 119	( .2) 122
1) N rin ost on ‐re cur g c s	( ) 7.6	( ) 0.0
he r ad Ot mi nis tiv tra e e xp en ses	( ) 84. 5	( 4) 75.
nd De cia tio isa tio ort pre n a am n	( 4) 10.	( 2) 26.
Op tin era g e xp en ses	( ) 221 .7	( ) 223 .9
ing in Ne t o rat pe com e	35 1.3	16 3.2
irm t lo nd oth vis ion Im pa en sse s a er pro s	11 .4	10 .7
d l the Ga ins in o set an oss es r as s	( ) 0.7	1.2
e b efo Ne t in inc e t com re om ax	36 2.0	17 5.0
Inc e t om ax	( 2) 60.	( ) 40. 6
Ne t in e f nti ing tio com rom co nu op era ns	30 1.8	13 4.5
t in e f di nti ed tio Ne com rom sco nu op era ns	64 .2
ibu tab le t oll Inc ing in ttr ntr ter est om e a o n on ‐co s
t in Ne com e	36 6.1	13 4.5
	Jun .18	Jun .19
nin r sh ( ) Ear € gs pe are	0.2 5	0.0 9
t in fro tin uin ion ( € ) Ne rat com e m c on g o pe s	0.2 1	0.0 9
fro m d d o ( ) Ne t in isc tin ion € rat com e on ue pe s	0.0 4
ig hte d n f sh ( in mi llio ) Av era ge we r. o are s ns	1 4 57	1 4 57

1) Costs with voluntary terminations and early retirements. Annexes

(unaudited)

Consolidated balance sheet

In M .€	31 8 De c. 1	30 . 19 Jun
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	2 0 08. 5
Fin ial he ld f rad ing fa ir v alu hro h p rof it o r lo nd at f air ets or t , at e t anc ass ug ss a
val thr h o the reh ive inc ue oug r co mp ens om e	2 3 30. 5	2 6 04. 4
ial d c Fin ise ets at ort ost anc ass am	25 671 .9	25 950 .9
Of wh ich :
Loa Cus to tom ns ers	22 949 .1	23 311 .0
in jo int and iate Inv est nts tur me ven es as soc s	209 .1	228 .7
ible Tan set g as s	67. 3	172 .6
ible Int set ang as s	55. 1	51. 5
Tax set as s	352 .8	332 .7
ssif ld f No nd dis al g cla ied he ale ent set n‐c urr as s a pos rou ps as or s	33. 9	27. 6
Oth ts er a sse	394 .5	320 .5
Tot al a ts sse	31 568 .0	31 697 .5
LIA BIL ITIE S
ial liab ilit he ld f rad Fin ies ing or t anc	141 .3	164 .3
Fin ial liab ilit ies ise d c at ort ost anc am	27 515 .7	27 674 .8
ral ks a nd dit De its ‐ C Ban Cre Ins titu tio ent pos ns	3 2 06. 3	2 7 49. 8
its ‐ C De ust pos om ers	22 960 .3	23 110 .7
hni cal Tec ovi sio pr ns
bt s riti iss ued De ecu es	1 1 18. 2	1 4 90. 3
du ubo rdi ed liab ilit Me m i ies tem nat mo ran s: s	304 .5	304 .5
er f Oth ina nci al l iab ilit ies	231 .0	324 .0
Pro vis ion s	65. 5	43. 1
lia bili Tax tie s	73. 8	73. 1
Lia bili tie s in clu ded in dis al g cla ssif ied he ld f sal pos rou ps as or e	0.0	0.0
Oth liab ilit ies er	565 .7	580 .6
al L iab ilit ies Tot	28 362 .1	28 535 .9
Sha reh old ' eq but abl he sha reh old of uit ttri BPI e t o t ers y a ers	3 2 06. 0	3 1 61. 5
rol ling int No ont sts n c ere	0.0	0.0
al S har eho lde rs' Tot uit eq y	3 2 06. 0	3 1 61. 5
Tot al l iab ilit ies d S har eho lde rs' uit an eq y	31 568 .0	31 697 .5

Annexes

(unaudited)

Consolidated profitability and efficiency metrics

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

	Ju 1 8 n.	Ju 1 9 n.
/ Gr inc A T A os s om e	3. 8 %	2. 4 %
fo / inc be inc d inc i bu b le l l ing in Ne 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 res	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 res 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 res	2 9. 1 %	1 0. 9 %
f f e / 1 S Gr inc ta xp en se s os s om e	2 0. 8 %	3 1. 6 %
/ 1 ing inc Op Gr t er a ex p en se s os s om e	% 3 7. 4	% 5 7. 8
( ) de Lo i io t to ts t an s ne p os ra	1 0 4 %	1 0 2 %

1) Excluding early‐retirement costs.

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

	8 Ju 1 n.	9 Ju 1 n.
( ) fo ing io No N P E t n‐ p er rm ex p os ur es ra	% 3. 8	% 3. 3
by im irm d c l la ls N P E c ts te ov er p a en an o ra	% 1 2 5	% 1 2 6
2) f fo bo lu de d Ra io inc in N P E t t o r rn e n o	% 1. 2	% 0. 7

2) Forborne according to EBA criteria and considering the scope of prudential supervision. On 30 Jun 2019, the forborne was 720.0 M.€ (forborne ratio of 2.2%), of which 221.3 M.€ was performing loans (0.7% of the gross credit exposure) and 498.7 M.€ was included in NPE (1.5% of the gross credit exposure).

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

Profit & loss account (1H 19)

f e ( € ) In i l l ion M. m s o uro	1H 19 ort ed by rep BP I	Con sol idat ion , st and ard isat ion and t ch e in FV ne ang adj de rive d fr the ust nts me om of bina tion bus ines com ses	1H 19 BP I ntr ibu tio n t co o CA BK G rou p	BP I t se gm en	Inv est nts me t se gm en
Ne t in in ter est com e	21 5	( ) 17	19 8	20 0	( ) 2
Div ide nd s	48		48		48
d i Equ ity nte ac cou nco me	20	( ) 1	19	11	8
fee nd mi ssi Ne t s a com on s	12 7		12 7	12 7
din Tra inc g om e	( ) 6	12	6	6
he Ot ing in e & rat r o pe com ex pe nse s	( ) 17	( ) 1	( ) 18	( ) 18
Gr in oss com e	38 7	( ) 7	38 0	32 6	54
Rec ing tin urr op era g e xpe nse s	( ) 22 4	( ) 8	( ) 23 2	( ) 23 2
Ext rdi tin rao na ry op era g e xpe nse s
‐im irm t in Pre pa en com e	16 3	( ) 15	14 8	94	54
ith rdi Pre ‐im irm t in t e xtr pa en com e w ou ao na ry ex pe nse s	16 3	( ) 15	14 8	94	54
Im irm lo nd oth vis ion ent pa sse s a er pro s	11	28	39	39
/ ins los di sal s & he Ga ot ses on spo rs	1	1	2	2
Pre x i ‐ta nco me	17 5	14	18 9	13 5	54
Inc e t om ax	( ) 41	( ) 1	( ) 42	( ) 37	( ) 5
fit for th eri od Pro e p	13 4	13	14 7	98	49
he Mi rity in s & ter est ot no r
t in Ne com e	13 4	13	14 7	98	49

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(Jun19)

Ju 1 9 ne In m illio of e ( M.€ ) ns uro	Re d b rte po y BP I	Adj ust nts me	BP I co ibu tio ntr n t o CA BK G ( BP I se ent ) rou p gm
d a dv Loa to sto t ns an an ces cu me rs, ne	23 31 1	( ) 46 5	22 84 6
l cu fun ds To ta sto me r	34 10 0	( ) 4 3 41	29 75 9

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 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 June 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	its, ion l s ign d a b bre via ion Un t t co nv en 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. h. e €, t uro s	tho nd usa eur os
RC L	las sifi ed Rec		cha nge
		n.a	ilab le not ava
ECB	Eur Cen l Ba nk 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	issã o d ado of Val obi liár ( rke n) Com 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	Est ima 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

Units, conventional signs and abbreviations

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

Consolidated income statement

Stru sed in t he R lts' Pre tati ctu re u esu sen on	Jun .19	Jun .19	Stru d in the fin ial s and tive ctu nte tate nts not re p rese anc me res pec es
Net int st in ere com e	214 .8	214 .8	Net int st in ere com e
Div ide nd i nco me	48. 3	48.3	Div ide nd i nco me
Equ ity a ed inco unt cco me	20. 2	20.2	/(lo ss) Sha f pr ofit of e ntit ies ed f sing the uity tho d unt re o acco or u eq me
fee and Net mis sion inc com om e	127 .2	139 .1	and Fee mis sion inc com om e
		(11. 9)	Fee and mis sion com exp ens es
ns/ (los ) on fin ial a nd l iabi litie d ot her Gai ts a ses anc sse s an	(6.3 )	(0.3 )	ns/ (los ) on de of f cial and liab iliti d at fai lue thro ugh fit o r lo Gai gnit ion inan ets ot m net ses reco ass es n eas ure r va pro ss,
		(0.8 )	ns/ Gai (los ) on fin ial a nd l iabi litie s he ld f rad ing, ts a or t t ses anc sse ne
		(7.3 )	ns/ (los ) on fin ial a ot d ed f rad pul ily m d at fai lue thro ugh fit o r lo Gai esig ing ts n nat or t net ses anc sse com sor eas ure r va pro ss,
		1.0	ns/ Gai (los ) fro m h edg ntin et ses e ac cou g, n
		1.3	han ge d iffe (ga in/l ), n Exc et ren ces oss
Oth atin g in d ex er o per com e an pen ses	(17. 0)	18.5	Oth atin g in er o per com e
		(35. 5)	Oth atin er o per g ex pen ses
ss i Gro nco me	387 .1	387 .1	GRO SS I NCO ME
Staf f ex pen ses	(122 .2)	(122 .2)	Staf f ex pen ses
Oth dm inis trat ive er a exp ens es	(75. 4)	(75. 4)	Oth dm inis trat ive er a exp ens es
Dep reci atio d am orti sati n an on	(26. 2)	(26. 2)	Dep reci atio d am orti sati n an on
rati Ope ng e xpe nse s	(223 .9)	(223 .9)	Adm inis ive dep reci atio d am orti sati trat exp ens es, n an on
Net ting inc op era om e	163 .2
los and oth Imp airm isio ent ses er p rov ns	10. 7	2.4	l of Pro visi visi ons or rev ersa pro ons
		8.3	/(re airm sal) of imp airm los fina ncia l as d at fai lue thro ugh fit o r lo Imp ent ent sets t m ver ses on no eas ure r va pro ss
Gai nd l es i her n ot ets ns a oss ass	1.2	1.0	(re sal) Imp airm of imp airm in s ubs idia ries joi d as iate ent ent nt v ent ver ure s an soc s
		1.7	/(re sal) of ‐fin ial a Imp airm ent imp airm ent ts ver on non anc sse
		(1.5 )	ns/ (los ) on Gai de gnit ion of n fina ncia l as sets t ses reco on‐ , ne
		(0.1 )	fit/ (los s) f and dis al g lass ifie d as he ld f ale alif disc ed o Pro t as sets not ying ont inu atio rom no n‐cu rren pos rou ps c or s qu as per ns
Net inc e be fore inc e ta om om x	175 .0	175 .0	FIT/ PRO (LO SS) BEF ORE TAX FRO M C ON TIN UIN G O PER ATI ON S
Inco tax me	(40. 6)	(40. 6)	late d to fit o r lo ss f Tax r in tinu ing rati exp ens e o com e re pro rom con ope ons
Net inc e fr tinu ing rati om om con ope ons	134 .5	134 .5	FIT/ PRO (LO SS) AFT ER T AX FRO M C ON TIN UIN G O PER ATI ON S
e fr dis ed o Net inc tinu atio om om con per ns	0.0	0.0	fit/ (los s) a fter fro m d ued Pro isco ntin tion tax op era s
ibu tab le t lling int Inco attr ntro sts me o no n‐co ere	0.0	0.0	fit/ (los s) fo r th riod ribu tab le t llin g in Pro att ntro tere sts e pe o no n‐co
Net inc om e	134 .5	134 .5	FIT/ (LO SS) PRO FOR TH E PE RIO D A TTR IBU TAB LE T O O WN ERS OF TH E PA REN T

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

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) / 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

On‐balance sheet Customer resources = 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)

Note: 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.

Assets under management = 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 Insurance = Third‐party capitalisation insurance placed with Customers
• Pension plans = pension plans under BPI management (includes pension plans of BPI Group)

(i) 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.

(ii) 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.

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, the cases in which it will be clearly marked.

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 amortized cost), excluding other assets (guarantee accounts and others) + Gross debt securities issued by Customers (financial assets at amortized 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

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, the cases in which it will be clearly marked.

BANCO BPI, S.A. Head Office: Rua Tenente Valadim, no. 284, Porto, Portugal Share capital: € 1 293 063 324.98 Registered in Oporto C.R.C. and corporate body no. 501 214 534