Banco Comercial Portugues

Investor Presentation • Jul 24, 2018

Banco BPI

Consolidated resultsin the 1st half 2018

24 July 2018

Discontinued operations in accordance with IFRS 5

In accordance with IFRS 5 ‐ Non‐current assets held for sale and discontinued operations, BPI Vida e Pensões, BPI Gestão de Activos and BPI GIF were classified as discontinued operations on December 31, 2017, following the signature of the sale contracts disclosed to the market on November 23, 2017.

Consequently, the assets and liabilities of these units are presented in the consolidated balance sheet of Banco BPI under the captions "Non‐current assets / liabilities held for sale and discontinued operations" and the respective contribution to consolidated results is presented under the caption "Results of discontinued operations".

Adoption of a new structure of the financial statements

With the entry into force of IFRS 9, in the beginning of 2018, Banco BPI decided to adopt a structure of the individual and consolidated financial statements in line with the guidelines of Regulation (EU) 2017/1443 of June 29, 2017 and with the structure of the financial statements presented by CaixaBank (the consolidating entity of Banco BPI).

Reclassification of costs from General Administrative Costs to Commissions paid

Until 31 December 2017, Banco BPI followed the Chart of Accounts of Banco of Portugal defined in Instruction 9/2005, which specified the inclusion of some costs in General Administrative Costs. Taking into account the revocation of the instruction and the integration / alignment of accounting policies with CaixaBank, costs that depend on the evolution of the business and which have as a counterpart a benefit charged to the clients, were reclassified from General Administrative Costs to Commissions paid.

Profit and loss account of 2017 proforma

The items in the profit and loss account of 2017 (and respective quarters) were restated (Proforma figures) recognizing the contribution of BPI Vida e Pensões, BPI Gestão de Ativos and BPI GIF to the consolidated results in accordance with IFRS 5, the adoption of a new structure of the financial statements, with the entry into force of IFRS 9, as well as the reclassification of costs from General Administrative Costs to Commissions paid as mentioned above.

Ac ro ny ms	d de ig ion do d t te an s na s a p	its ion Un t co nv en ,	l s ig d a b br iat ion a ns an ev s
d t y	da Ye to‐ te ar‐	€, Eu E U R ro s,	eu ros
y oy	Ye ar‐ on ‐y ea r	M €, M . e ur os	i l l ion m eu ros
q oq	rte rte q ua r‐o n‐q ua r	h. €, h. t t eu ro s	ho d e t us an uro s
R C L	las f d Re i ie c s		ha c ng e
		n.a	la b le i t a no va
E C B	l k Eu Ce Ba ntr ro p ea n a n	0, –	l l o lev irr t nu r e an
Bo P	k o f l Ba Po rtu n g a	vs	ve rsu s
C M V M	( ) iss ão do do f lor b i l i ár ios it ies ke iss ion Co Me Va Mo Se Ma Co t m rca o es cu r r mm	b.p	ba is p int s o s
A P M	fo lte ive A Pe Me t rna r rm an ce as ure s	p. p.	int tag p erc en e p o
I M M	ba k ke Int Mo Ma t er n ne y r
		E	Est im ate
T 1	T ier 1	F	Fo ast rec
C E T 1	Co Eq ity T ier 1 mm on u
R W A	k w hte d a R is ig ts e sse
O T L T R	d lon f ina ing ion Ta ete te t rg g er‐ rm re nc op era s
L C R	L iq i d ity io at u co ve rag e r

"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, historical share price or financial accretion are not intended to mean that future performance, future share price 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.

Index

du In tro to te c ry n o s	2
la isc im D er	3

Results in the 1st half 2018

h l h 1. H i i t g g s	5
l 2. C i i i t t o m m e r c a a c v y	1 7
l 3. R t e s u s	2 2
l h 4. B S t a a n c e e e	2 9
l k i 5. C o s n g r e m a r s	3 5
An ne xe s	3 7

BPI consolidated results in the 1st half 2018

i R t e c u r r n g n e i i n c o m e n c r e a s e s l d i i P t n o r u g a a n n h l d d i t t e c o n s o a e	l d d f f h t h l f C i i 3 6 6. € i 2 0 8 1 M 1 s 1 t t t t  o n s o a e n e p r o o n e a f l f h t h l f i i i N P 2 2 2. 5 M € 1 2 0 1 8 t t t s t  e p r o n o r u g a o n e a ), 1 i f i i l f i h t h l f R P 1 0 4. 2 M € 3 2 % 1 2 0 1 7 s t t t t  e c r r n g n e p r o n o r g a o n c r e a s e s s. e a u u v
h i S t t r o n r o n g g w d i d t e p o s s a n l l i P t o a n s n o r u g a	l ( ) i i i % d L P 5 9 3 M € 8. 3 t t t  + o a n s o c o m p a n e s n o r u g a n c r e a s e y ( ) d i d C 1 4 4 5 M € 7. 5 % t t t  + s o m e r e p o s s g r o u w y
h i H t g a s s e l i t q u a y	2 ( ) f i i f i N N P E E B A i i 3. 8 % J 1 8, i 1. 3 t t  o n‐ p e r o r m n g e x p o s u r e s r a o c r e r a o n u n. m p r o e s p. p. o e r v v ‐ D 1 7 e c. ( ) b i i d l l l f f i f C N P E 1 2 5 % t t  o v e r a g e y m p a r m e n s a n c o a e r a o n o n‐ p e r o r m n g e x p o s u r e s o
S t r o n g i l i i t t c a p a s a o n	l l l d d i l i f d l f F C E T 1 1 2. 8 % 1 4. 6 % t t t t  o a e c a p a r a o s o a n o a o u y : l l l d d l f i 6. % F 7 t  u y o a e e v e r a g e r a o o

1) Excluding non recurring gains of 118.3 M.€: gain of 60 M.€ with the sale of the stake in Viacer; gain of 62 M.€ with the sale of subsidiaries (BPI Gestão de Ativos and BPI GIF), cost of 5.5 M.€ (after taxes) with early retirements and results from discontinued operations of 2.5 M.€.

2) According to EBA (European Banking Authority) criteria; considering the prudential supervision perimeter.

Recurring net income in Portugal increases 32% yoy to 104.2 M.€

N E T I N C O M E I N T H E A C T I V I T Y I N P O R T U G A L
€ I M n	1 H 1 7	8 1 H 1	 %
l i i N P t t e n c o m e n o r u g a	0. 1 7	2 2 2. 5
i i N t o n‐ r e c u r r n g m p a c s	( ) 6 8. 3	8. 3 1 1
h l l d C i i i t t t t t o s s w v o u n a r y e r m n a o n s a n e a r y ) 1 i t t r e r e m e n s	( ) 7 6. 3	( ) 5. 5		le f iac ke Sa V ta o er s	5 9. 6 M
h h l f h h l d G i i i t t a n s w e s a e o s a r e o n g s		2 3 1 1.		le f ão de Sa B P I Ge A ivo t t o s s nd ( ) d G 2 B P I I F te an q ua r r	6 1. 8 M
f d d i i i i N t t t e n c o m e r o m s c o n n u e o p e r a o n s	8. 0	2. 5
l i i i R P t t e c u r r n g n e n c o m e n o r u g a	7 9. 0	1 0 4 2	3 2 % +	ion be let d in Tr ct s t an sa o co mp e	2) 2 0 1 8
				it ies d c f ina Eq ate  u an or p or nc ds Ca iss  r ua nc e ha Me ir ing nt  rc ac q u	e

Contribution from BFA and BCI of 143.5 M.€

C O N T R I B U T I O N F R O M B F A A N D B C I
I M € n	1 H 1 7	1 H 1 8
[ ] b i i 1. B F A t t c o n r u o n	( ) 6 1 1 5.	3 6. 3 1
f h h, O i c w
f h l f f d d l d % i i I 2 B F A t t t m p a c r o m e s a e o o a n e c o n s o a o n	( ) 2 1 1. 6
( ) h f l H i i i i 2 0 1 8 I A S 2 9 t g n a o n n		( ) 2 5 5
[ ] b i i 2. B C I t t c o n r u o n	4 6	7 1
2 ) [ ] h 3. O t e r	( ) 1. 4	0 2
[ ] l 4 T t o a [ ] =1 2+ 3 +	( ) 1 1 2. 4	1 4 3. 5

Contribution from BFA of 136 M.€ in the 1st half 2018, includes impacts from the recognition of the stake in BFA in accordance with IAS 29 and from the depreciation of AKZ.

• In the first half 2018, the Angolan local currency (AKZ) depreciated by 36% against the Euro, and BFA recorded significant non recurring gains with financial operations, 101.5 M.€ of which were appropriated by BPI (after taxes). That amount compares with an average value appropriated by BPI in 2017 of 12 M.€ for 6 months.
• Contribution of BCI of 7 M.€in the 1st half 2018.

¹⁾ Includes results booked in earnings of associated companies (equity method) (156 M.€), net income on financial operations (‐5 M.€) and income taxes (14 M.€).

²⁾ Contribution of BPI Moçambique and BPI Capital África.

Impact of AKZ devaluation on the evolution of the value of stake in BFA

• On 4 Jan.18, the National Bank of Angola (BNA) adopted a new exchange regime with an exchange rate fluctuation band. The exchange rate is now determined in currency auctions.
• In the 1st half 2018, AKZ devaluated about 36% against the Euro.

	M €
k v lue f s ke in de Bo B F A 3 1 1 7 ta t o a o a c.	5 7 6
ha fro d C in in 2 0 1 8 te ng e m ea rn g s g en er a	1 5 6
f is i bu io d iv i de ds D 2 0 1 7 tr t n o n	4 8 ‐
ha in fo ig ha lu io d he C t t ng e re n e xc ng e r ev a a n re se rv es a n o r	1 8 4 ‐
k v lue f s ke in Bo B F A 3 0 Ju 1 8 ta t o a o a n.	5 0 0

BNA REFERENCE RATES

			 %
	3 1 De 1 7 c.	3 0 Ju 1 8 n.	1) / 1 A K Z x
/ 1 A K Z E U R	1 8 5. 4	2 8 8. 9	3 6 % ‐
/ A K Z 1 U S D	1 6 5. 9	2 4 8. 3	% ‐3 3

Average rate of purchase and sale.

1) Change in the AKZ value when expressed in EUR or USD.

Consolidated net profit of 366.1 M.€

	C O N S O L I D A T E D R E S U L T S
	I M € n
l i d d f i C t t t  o n s o a e n e p r o
f 3 6 6. 1 M € o h t h l f i 2 0 8 1 s 1 t n e a
l i i i A P t t t  c v y n o r u g a b i 6 % 1 t t t c o n r u e s o
l i d d f i t t c o n s o a e p r o

C O N S O L I D A T E D R E S U L T S
€ I M n	1 H 1 7	8 1 H 1	 %
f i i l N P t t t e p r o n o r u g a	1 0. 7	2 2 2. 5
f i i R t t e c u r r n g n e p r o	7 9. 0	1 0 4 2	3 2 % +
) 1 N i i t o n‐ r e c u r r n g m p a c s	( ) 6 8. 3	1 1 8. 3
b d i i B F A B C I t t a n c o n r u o n	( ) 1 1 2. 4	1 4 3. 5
l d d f C i i t t t o n s o a e n e p r o	( ) 1 0 1. 7	3 6 6. 1

1)Non recurring impacts:

In the 1st half 2017 ‐ negative impact of 212.3 M.€ from the sale of 2% of BFA and deconsolidation (of which ‐182 M.€ corresponded to the transfer to net income of accumulated negative foreign exchange reserves that resulted from the translation of BFA financial statements from AKZ to EUR), cost of 76.3 M.€ (after taxes) with early retirements and voluntary terminations and results from discontinued operations of 8.7 M.€.

In the 1st half 2018 ‐ gain of 60 M.€ with the sale of the stake in Viacer, gain of 62 M.€ with the sale of subsidiaries (BPI Gestão de Ativos e BPI GIF), cost of 5.5 M.€ (after taxes) with early retirements and results from discontinued operations of 2.5 M.€.

Recurring ROTE in Portugal of 9.0%

	( ) ( O G Q O las R E T U R N N T A N I B L E E U I T Y R T E t	) 2 m hs 1 t on
		Ju 1 7 n. ( las hs ) 1 2 t t m on	Ju 1 8 n. ( las hs ) 1 2 t t m on
	Co l i da d te ns o
l i d d C R O T E t  o n s o a e	1) d d a l loc d c l ( ) A j i M € te te ta us a ap	2 6 5 1	2 0 7 7
f 3 % 1 7. o	R O T E	4. 2 %	1 7. 3 %
i i R R O T E  e c u r r n g n	l Po tu r g a
h i i i t t t e a c n v y	1) d d a l loc d c l ( ) A j i M € te te ta us a ap	1 9 0 2	2 1 6 5
l f 9. 0 % P t o r u g a o	i R R O T E e c u r r n g	% 1 0. 6	% 9. 0

BPI expects to achieve in the activity in Portugal a ROTE > 10%(recurring) in 2020

1) The average capital considered in the calculation of ROTE excludes the average balance of intangible assets (average consolidated balance in 12 months until June 2018: 34 M.€.) and other comprehensive income (reserves) (average consolidated balance in 12 months until June 2018: 8 M.€.)

High asset quality

Non‐performing exposures ratio (NPE)

(EBA criteria1)

125%Jun.18Coverage by impairments and collateral

• Low levels of defaulted loans; asset quality indicators continue to improve
• NPE ratio of 3.8%
• Coverage by impairments and collateral of NPE of 125%

1) According to EBA (European Banking Authority) criteria; considering the prudential supervision perimeter.

Solid capital position

• The capital ratios in Jun. 18 incorporate a distribution of dividends in accordance with the new long term dividend policy approved in the General Shareholders Meeting of 29 June 2018.
• CET1 ratio of 12.8%
• CET1 ratio proforma considering the sale of the businesses 1) announced in Nov. and Dec. amount to 13.0%
• Total capital ratio of 14.6% (14.8% proforma considering the sale of businesses)

Results of commercial activity in Portugal

Note: Changes in the 1st half 2018.

Results of commercial activity in Portugal

Reinforcement of BPI's position as Bank for the Agriculture Leadership in the line that supports the tourism ("Qualificação da Oferta" credit line) Share of 26% in Jun.18 1) 1st position insurance intermediation COSECShare of 44% in Jun.18Corporates and SME main segments offer AGRICULTURETOURISMEXPORTINGLoans and guarantees Changes in loan portfolio ytd + 2.1%+ 15.6%+ 8.1% 2)

1) Considering only the tranches of the Banks. 2) Loans to exporting sector.

Main indicators of Digital Banking

Results in the 1st half 2018

1. Highlights

2. Commercial activity

• 1. Results
• 1. Balance Sheet
• 1. Closing remarks

Annexes

Customer deposits increase 7.5% ytd

C U S T O M E R R E S O U R C E S
In M. €	ju n‐1 8	de c.1 7 1) for pro ma	Yt D	de c.1 7 a s d ort rep e
‐ba lan he I. On et ce s res ou rce s	2 6 8 1 1	2 0 9 7 1	3 % 4.	2 0 6 8 6
2 de Cu its sto me r p os	2 0 8 1 3	1 9 3 6 8	% 7. 5	1 9 3 6 8
l a d f l Ins itu ion ina ia inv t t est a n nc ors de its p os	8 0 5	1 3 1 5	4 0 % ‐	1 3 1 8
de I I. As ts t se un r m an ag em en	9 7 9 9	9 7 5 4	0. 5 %	1 0 1 2 3
l fun ds Mu tu a	6 3 8 5	6 8 5 5	0. 3 % ‐	6 0 2 7
l Ca ita isa ion ins t p ura nc e	4 1 6 0	4 0 9 6	% 1. 6	4 0 9 6
b l ic o f fer ing I I I. Pu s	1 8 9 4	2 1 5 1	1 1. 9 % ‐	2 1 5 1
l To ta	3 3 3 1 1	3 2 6 2 4	2. % 1	3 2 9 6 0
ke ha Ma t s r re s	3 1 Ma 1 8 y			3 1 De 1 7 c
3 l de To its ta p os	% 1 0. 2			% 9. 8
4 l fu ds Mu tua n	% 1 5. 8			% 1 6. 4
4 's P P R	% 1 2. 0			% 1 2. 8
4 l Ca ita isa ion ins t p ur an ce	% 1 5. 0			% 1 4. 3

1) Proforma considering the sale of BPI Gestão de Ativos and BPI GIF.

2) Includes retail bonds of 25 M.€ in Jun.18 and 35 M.€ in Dec.17.

3) Market share as of April 18. Does not include the effect of securitization operations (BPI calculation).

4) PPRs include PPR in the form of mutual funds and capitalization insurance. For that reason those PPRs are excluded in the calculation of the market shares of mutual funds and insurance capitalisation.

Customer deposits increase by 7.5% ytd (+ 1 445 M.€)

The Bank has been actively reducing its offer of deposits to institutional investors with the purpose of optimizing liquidity ratios (LCR).

C U S T O M E R R	E S O U R C E	S E V O L U T I O	N
In M. €	On ba he t r s e	lan ce es ou rce s	As se m an	de ts un r t ag em en			2. % 1 +
	8 9 9 +	M €	4 +	4 M €			0. 7 B i. +	€
	1, 4 4 5 +	( ) 6 5 4	( ) 2 0	6 +	4	( ) 2 5 6	3 3 3 1 1
3 2 6 2 4	Cu sto me r de its p os	its f De p os o ins itu ion l t t a inv est or s d o he t an rs	Mu tu a fu ds n	Ca ita l p Ins ura	l is. nc e	b l Pu ic bs ip t. su cr f fer o s
3 1 De z. 3 1 De c. f. 2 0 1 7 p ro f. 2 0 1 7 p ro							3 0 3 0 Ju Ju n. n. 2 0 1 8 2 0 1 8

Loans to companies in Portugal increase by 8.3% ytd

L O A N S T O C U S T O M E R S B Y S E G M E N T S
fo l Gr io, in € M t os s p or	j ‐1 8 un	de 1 7 c‐	Y D t
in d iv i du ls I. Lo to an s a	1 2 1 2 5	1 2 2 8 0	1. 9 %
lo M tg or ag e an s	1 1 2 0 4	1 1 0 8 4	1. 1 %
he lo d du ls O in iv i t to r an s a	1 3 0 8	1 1 9 6	9. 4 %
I I. Lo Co ies to an s m p an	8 9 3 0	8 5 1 5	4. 9 %
d La Co & tes te rg e c or p or a a n rp or a k in Inv Ba tm t es en n g	2 6 1 8	2 2 3 8	1 7. 0 %
d d c M iu ize ies e m s om p an	2 9 4 7	2 8 1 3	4. 7 %
l l bu Sm in a s es se s	2 1 9 7	2 1 1 7	3. 7 %
l l To Co ies in Po ta tu mp an r g a	7 7 6 1	7 1 6 8	8. 3 %
f d dr d h Pr j in M i Br t o ec an ce a n a an c	1 1 6 8	1 3 4 7	( ) 1 3. 2 %
b l ic I I I. Pu to se c r	1 5 1 8	1 3 0 5	1 6. 4 %
he I V. O t r	1 1 9	1 2 3	( ) 3. 3 %
l To ta	2 3 0 8 0	2 2 2 2 3	3. 9 %
No te :
lo fo l io Ne t t an p or	2 2 5 0 6	2 1 6 3 8	4. 0 %

Growth trends continue in the 1st half

• Loans to corporates and small businesses goes up by 8.3% ytd.
• Mortgage loan portfolio increases 1.1% ytd and consumer loans increase 9.4% ytd.
• Total loan portfolio grows by 3.9% YTD.

18

242

110

352

Mortgage loan origination goes up by 44% yoy in the 1st half 2018

Mortgage loans

Personal loans and car finance

• Origination of mortgage loans goes up by 44% yoy to 711 M.€ in the 1st half 2018.
• Origination exceeds amortisations since the 3rd quarter of 2017 and trend in the reduction of the portfolio is reversed.
• Consistent increase in the loan portfolio market share (11.3% in April 2018) in a segment of the market that is still shrinking.
• Origination of personal loans and car finance increases 40% yoy.

Corporate and small businesses loans in Portugal go up by 8.3% YtD and BPI market share increases

• Growth of 10.2% (YtD) in loans to Large and Medium‐sized companies in Portugal (excludes project finance and Madrid branch loan portfolio).
• Growth of 3.7% (YtD) in loans to small businesses.
• Gradual increase in market share (8.8% in April 2018).

Results in the 1st half 2018

• 1. Highlights
• 1. Commercial activity

3. Results

• 1. Balance Sheet
• 1. Closing remarks

Annexes

Sustained improvement in the financial margin in 2018

Financial margin increases 7.6% yoy in the 1st half 2018, despite the cost (+4 M.€ yoy) with subordinated debt issued in Mar. 17.

Trends in margin evolution:

• Reduction in the average cost of term deposits (in euro) from 0.11% in the 1H17 to 0.07% in 1H18
• Growth of loan portfolio in Portugal
• Cost in 1H 18 (+4 M.€ yoy) from the subordinated Tier II debt issued on 24 Mar.17 (remuneration Euribor 6M + 5.74%)

Intermediation margin increases 3 basis points to 176 b.p.

• Adjustment of the cost of time deposits has been the main factor for the improvement of the intermediation margin, more than compensating the narrowing of loans spreads.
• Average remuneration of time‐deposits is close to zero.
• Average remuneration of the loan portfolio is stable.

1) From 4Q16 onwards (including) it refers to the deposits' remuneration contracted in euros.

Commissions increase by 9.4% yoy in the first half 2018

Commissions

Commissions by business area

C O S S O S, € N E T M M I I N M,
In M €	1 H 1 8	1 H 1 7	Yo Y
k Ba in iss io n g co mm ns	1 0 1. 8	9 2. 9	9. 6 %
in d ia io In te t su ra nc e rm e n	3 2. 8	3 0. 2	8. 8 %
l To ta	1 3 4. 6	1 2 3. 1	% 9. 4

1)BPI Alternative Fund ceased to be consolidated in Banco BPI accounts from March 2017 onwards. In the consolidation of that fund, net commissions paid by the BPI Alternative Fund of 2.2 M.€ in the 1Q17 were recorded.

• Net commissions increase by 9.4% yoy in the 1st half 2018.
• Banking commissions go up by 9.6% yoy in the 1st half 2018.
• The reduction in total commissions in the 1st half 2018 (vs. the 2nd half 2017) reflects the seasonality in the collection of commissions and the fact that were no issues of OTRV1 in the 1st half 2018, while in the 2nd half 2017, 9.5 M.€ of commissions were recorded with the placement of OTRV with BPI clients.

Recurring overhead costs decrease 3.7% yoy

• Overhead costs excluding costs from voluntary terminations and early retirements decrease by 8.2 M.€ (‐3.7%) yoy
• Recurring personnel costs fell by 13.7 M.€ (‐10.3%) yoy
• General administrative costs are in line with budget forecast
• BPI expects to reach a cost‐to‐income close to 50% in 2020
• 1) Additionally, at Jun.18, BPI had 39 premier centres and 35 corporate centers in Portugal, thus totaling 497 business units.

Employee pension liabilities covered at 105%

Pension fund return (in June 2018) 7.5%

M. €	3 1 D . 1 7 ec	3 0 Jun . 1 8
l p l b l To ice ia i i ta t s ty a s erv	1 6 0 4	1 5 9 2
f t he fu ds Ne io t a ts s s e o p en s n n	1 5 6 8	1 6 6 8
f c f p l b l De io ia i i ies t g ree o ov era g e o en s n	9 8 %	1 05 %
D i s c nt te ou ra	2. 0 0 %	2. 0 2 %
la r h r Sa t te y g row a	1. 0 0 %	1. 0 0 %
h r Pe io t te ns ns g row a	0.5 0 %	0.5 0 %
l b le Mo i : M rta ty ta en	/ TV 8 8 9 0
l b le Mo i : W rta ty ta om en	1) / TV 8 8 9 0 – 3 y ea rs

1) For the target population, the age below the actual age of beneficiaries is two years for men and three years for women respectively, which is equivalent to considering a higher life expectancy.

2), C O S O € A T U A R I A L D E V I A T I N I N T H E P E R I D M
l a ia l de iat ion To 3 1 De 1 7 ta ctu t ar v s a c.	( ) 2 1 1
fu io ds in de ia io Pe t ns n n co me v n	1 0 2
ha he d C in i s c t nt te ng e ou ra	6
he Ot r	( ) 7
l a ia l de iat ion To 3 0 Ju 1 8 ta ctu t ar v s a n.	( ) 1 1 0
) d dir ly ha ho l de da 2 Re nis in s in a ect cog e re rs, cco r nce w	h IA it S1 9.

Pension fund return of 7.5% (non annualized) in 1H18 with a positive impact of 102 M.€ in actuarial deviations.

Employee pension liabilities covered at 105%.

Loan impairment reversals of 4.5 M.€ and recoveries of 7.0 M.€ in 1H18

Cost of credit risk1)

COST OF CREDIT RISK

(Impairments after deducting recoveries from loans previously written off)

	20 12	20 13	20 14	20 15	20 16	20 17	1H 18
M. €	2 4 2	2 4 9	1 5 8	8 7	1 9	5 ‐	‐1 1. 5
loa % n fo lio po r	0. 9 1 %	0. 9 8 %	0. 6 6 %	0. 3 8 %	0. 0 9 %	0. 0 2 % ‐	‐0. 1 0 %

• Loan recoveries previously written off amounted to 7.0 M.€ in 1H18.
• The application of IFRS 9 led to an increase of 35 M.€ in loan impairments, which was directly recognized in shareholders' equity, and an impact in shareholders' equity of ‐26 M.€.

% loan portfolio (last 12 months)

0. 3 2 %	0. 2 % 4	0. 6 % 1	0. 0 9 %	0. 0 % 1 ‐	0. 0 % 1 ‐	0. 0 6 % ‐	0. 0 2 % ‐	0. 0 % 4 ‐	0. % 1 1 ‐

Results in the 1st half 2018

• 1. Highlights
• 1. Commercial activity
• 1. Results

4. Balance Sheet

1. Closing remarks

Annexes

NPE ratio of 3.8% in Jun.18

NON‐PERFORMING EXPOSURES ‐ NPE (EBA CRITERIA2))

NON PERFORMING LOANS (BANK OF SPAIN CRITERIA)

NPE ratio (EBA criteria)

• NPE ratio of 3.8% in Jun.18, improves 1.3 p.p. vs. Dec.17;
• Coverage of 52%1) by impairments and 125% by impairments and collateral

Forborne exposures (EBA criteria2))

3 0 Ju 2 0 1 8	fo Pe ing r rm	lu de d Inc in	l To
n.	loa ns	N P E	ta
( ) bo Fo M. € r rn e	0 9 4	6 0 8	0 1 1 7
bo io ( % f g d i ) Fo t t e r rn e r a a s o ro s s cr e xp os ur e	% 1. 2	% 1. 8	% 3. 0

NPL ratio (Bank of Spain criteria)

• NPL ratio of 4.4%
• Coverage of 55% by impairments and 123% by impairments and collateral

40% of forborne exposures are performing loans

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

2) NPE ratio and forborne ratio considering the prudential supervision perimeter.

Foreclosed properties at very low levels in BPI

Foreclosed properties of 53 M.€ (net of impairments)

Sale of 220 properties in 1H18 for 19 M.€. Positive impact in profits before taxes of 2.2 M.€.

2) Includes 34.7 M.€ of impairments booked in the P&L account until 31 Dec. 2017 and 0.2 M.€ of potential capital losses in the date of transition of IFRS9.

Balanced funding structure and comfortable liquidity position

• Client Resources are the main source of funding of the balance sheet (68% of assets).
• Loan to Deposit ratio of 99%.
• 2.0 Bi.€ of funds obtained with the ECB (TLTRO). BPI still has 9.0 Bi.€ of high quality liquid assets and assets eligible as collateral for additional funding from the ECB.
• Portfolio of short term public debt of 1.3 Bi.€
• Portfolio of medium and long term public debt of 2.6 Bi.€, of which 2.1 Bi.€ was acquired in the 1H18 (with an average residual maturity of 2.8 years).
• Recourse to wholesale debt market is small (2% of assets).

2) Average amount (last 12 months) of LCR components calculation: Liquidity Reserves (4 102 M.€); Total net outflows (2 369 M.€).

3) Portugal. 4) Portugal (39%), Spain (38%) and Italy (23%). 5) Portugal (31%), Spain (40%) and Italy (28%).

Short‐term public debt 3) 1 255 ⁰ 0.4 MLT public debt 4) ^{807 2} 1.7

MLT public debt5) 1 778 ‐ 2.8

Equi ties 79 59

Total 3 920 61

At fair value through other comprehensive income

At amortised cost

¹⁾ Includes 300 M.€ of subordinated debt issued in the 1Q17.

Capital ratios

	3 1 D 2 0 1 7 e c.	3 0 J u n.	2 0 1 8		l C i t a p a
M €	d A t s r e p o r e	d A t s r e p o r e	f P r o o r m a ( le f sa o bs d i ia ie & su r s bu ) in s es se s	i l C t a p a i t r e q u r e m e n s ( ) 2 0 1 8 S R E P	i t r e q u r e m e n s f l l l d d u y o a e 1) ( ) S R E P
i C E T 1 t r a o	1 2. 3 %	1 2. 8 %	1 3. 0 %	8. 7 5 %	9. 7 5 %
i i T I t e r r a o	1 2. 3 %	1 2. 8 %	1 3. 0 %	1 0. 2 5 %	1 1. 2 5 %
l l i i T t t t o a c a p a r a o	0 % 1 4.	6 % 1 4.	8 % 1 4.	2. 2 % 1 5	3. 2 % 1 5
i L t e e r a e r a o v g	% 6. 8	% 6. 7		3. 0	) 2 %

• CET1 ratio of 12.8%
• CET1 ratio proforma considering the sale of businesses announced in Nov. and Dec. amounts to 13.0%
• Total capital ratio of 14.6% (14.8% proforma considering the sale of businesses)
• BPI meets SREP minimums for CET1, T1 and total ratio
• Leverage ratio of 6.7%

¹⁾Minimum requirements applicable in 2021.

²⁾Minimum value in calibration.

Investment Grade

Non‐Investment grade

BPI has investment grade long‐term credit rating from two agencies

nd … A A‐, AA , AA AA A + a	a3, 2, A and … A Aa a1 Aa a	nd … A A‐, AA , AA AA A + a
A +	A 1 bo ds Mo rtg ag e n	A +
A	A 2	A
A‐	3 A	A‐
B B B +	Ba 1 a	k B B B Ba 1 + n
B B B	2 Ba a	l Po B B B rtu g a
B B B‐ k l Ba 1 Po rtu n g a	Ba 3 a	B B B‐
B B +	k Ba 1 Ba 1 l Po rtu n g a	B B +
B B	Ba 2	B B
B B‐ k 2 Ba n	k 3 Ba Ba 3 n	k k B B‐ Ba 2 Ba 3 n n
B +	k Ba 2 B 1 n	k Ba 4 B n +
B	B 2	B
B‐	B 3 k Ba 4 n	B‐
C C C +	Ca 1 a	C C C +
nd … C CC, CC C‐, CC, C a D	k Ca 2 Ba 5 a n	nd … C CC, CC C‐, CC, C a D
	and Caa 3, Ca C …

… A A‐, AA , AA nd AA A + a	and … A a3, Aa 2, A a1 Aa a	… A A‐, AA , AA nd AA A + a
	A 1 bo ds Mo rtg ag e n	A +
	A 2	A
	A 3	A‐
B B B +	Ba 1 a	B B B k Ba 1 + n
	Ba 2 a	l Po B B B rtu g a
B B B‐ k l Ba 1 Po rtu n g a	3 Ba a	B B B‐
	k Ba 1 Ba 1 l Po rtu n g a	B B +
	Ba 2	B B
k Ba 2 n	k Ba 3 Ba 3 n	B B‐ k k Ba 2 Ba 3 n n
	k Ba 2 B 1 n	k Ba 4 B n +
	2 B	B
	k B 3 Ba 4 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	… C CC, CC C‐, CC, C a nd D
de Inv B B B ‐ tm t g es en ra	3, and Caa Ca C …	de Inv B B B ‐ tm t g es en ra

		A ( h), … A A, A hig AA A
( ) low A A		bo ds Mo rtg ag e n
( h h ) A ig
A		k Ba 1 n
( low ) A
( ) h ig h B B B
B B B
( ) low B B B	l Po rtu g a	k Ba 3 n
( h h ) B B ig		k Ba 2 n
B B		k Ba 4 n
( low ) B B
( h h ) ig B
B
( low ) B		k Ba 5 n
( h h ) C C C ig

… CCC, CCC (low), CC (high), CC, CC (low), C (high), C, C (low), D

• BPI has "investment grade" ratings from Standard & Poor's and Fitch Ratings
• BPI is one of two banks in Portugal to have investment grade ratings from 2 or more rating agencies, which is a necessary condition to be able to grant international guarantees.

Results in the 1st half 2018

• 1. Highlights
• 1. Commercial activity
• 1. Results
• 1. Balance Sheet
• 5. Closing remarks

Annexes

Results in 1H18 ‐ highlights

d l G t o o r e s u s f r o m l i c o m m e r c a i i i t t a c n v y l P t o r u g a	L t o a n s o i c o m p a n e s 9 3 5 + € M 8 3 % + d 1 H 1 8, t y	C t u s o m e r d i t e p o s s 1 4 4 5 + € M % 7 5 + d 1 H 1 8, t y	i i l F n a n c a i m a r g n 7 6 % + 1 H 1 8, y o y	i i C o m m s s o n s 9 % 4 + 1 H 1 8, y o y
d I m p r o v e f f k i i i e c e n c y r s , d a n i l i i t t c a p a s a o n	i R e r r n c u g t c o s s 3 % 7 ‐ 1 H 1 8, o y y	i C t t o s o n c o m e ‐ ‐ % 6 1 5	i N P E t r a o % 3 8	C E T 1 F L 2 8 % 1 l T F L t o a % 1 4 6
f i P t r o i i n c r e a s e s n l d P t o r a a n u g i n l i d d t c o n s o a e	l i d d C t o n s o a e f i t p r o 3 6 6 1 M € 1 H 1 8	f i i P t r o n l P t o r u g a 2 2 2 5 M € 1 H 1 8	T t a r g e s l P 2 0 2 0 t o r u g a ‐ ( l. s ha ho l d ing Ex c re s d ) in A C I B F B an	i C t t o s o n c o m e ‐ ‐ 0 % 5 ≈ R O T E 1 0 % >

Results in the 1st half 2018

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
• Alternative Performance Measures

Income Statement of activity in Portugal

Income Statement

	1) ha l f 1st 2 0 1 8 ha l f fo 1st 2 0 1 7 p ro rm a					 
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	2) re cu rr.	2) re cu rr.	d te re p or	2) re cu rr.	2) re cu rr.	2) re cu rr.
l m F ina ia in nc ar g	2 0 7. 2		2 0 7. 2	1 9 2. 5		1 9 2. 5	7. 6 %
fro Inc ity ins tru nts om e m eq u me	1. 5		1. 5	6. 4		6. 4	7 7. 0 % ‐
f a d c ( Ea ing iat ies ity rn s o ss oc e om p an eq u ho d ) t me	8. 4		8. 4	9. 0		9. 0	6. 2 % ‐
Ne iss ion inc t c om m om e	1 3 4. 6		1 3 4. 6	1 2 3. 1		1 2 3. 1	9. 4 %
f l o Ne inc ina ia ion t t om e o n nc p era s	7 8. 9	5 9. 6	1 9. 4	1 4. 6		1 4. 6	3 2. 6 %
Op ing inc d e t era om e a n xp en se s	( ) 8 1 5.		( ) 8 1 5.	( ) 1 7. 7		( ) 1 7. 7	0. 8 % 1
ing inc fro ba k ing iv ity Op at t er om e m n ac	4 1 4. 9	5 9. 6	3 5 5. 3	3 2 7. 9		3 2 7. 9	% 8. 3
l c Pe ts rso nn e os	( ) 1 2 6. 8	( ) 7. 6	( ) 1 1 9. 2	( ) 2 3 8. 1	( ) 1 0 5. 1	( ) 1 3 2. 9	% 1 0. 3 ‐
l a dm Ge in ist ive rat sts ne ra co	( ) 8 4. 4		( ) 8 4. 4	( ) 7 8. 4		( ) 7 8. 4	7. 7 %
d a De iat ion isa ion rt t p rec an mo	( ) 1 0. 4		( ) 1 0. 4	( ) 1 1. 0		( ) 1 1. 0	5. 0 % ‐
he d c Ov ts er a os	( ) 2 2 1. 7	( ) 7. 6	( ) 2 1 4. 1	( ) 3 2 7. 4	( ) 1 0 5. 1	( ) 2 2 2. 3	3. 7 % ‐
fo Ne ing inc be im irm t o at ts p er om e re p a en d p is ion an rov s	1 9 3. 2	5 2. 0	1 4 1. 2	0. 5	( ) 1 0 5. 1	1 0 5. 7	3 3. 6 %
irm d p is ion f Im ts et p a en an rov s n o f loa d e ies int st rec ov er o ns ere an xp en se s ,	1 1. 1		1 1. 1	( ) 8. 5		( ) 8. 5	2 3 0. 4 % ‐
d los he Ga ins in ot ets an se s r a ss	( ) 0. 7		( ) 0. 7	7. 7		7. 7	1 0 8. 5 % ‐
inc be fo inc Ne t e t om e re om ax	2 0 3. 7	5 2. 0	1 5 1. 7	( ) 0. 3	( ) 1 0 5. 1	1 0 4. 8	4 4. 7 %
Inc e t om ax	( ) 4 5. 4	2. 1	( ) 4 7. 4	3. 0	2 8. 8	( ) 2 5. 8	8 3. 7 %
fro Ne inc inu ing ion t nt at om e m co op er s	1 5 8. 3	5 4. 1	1 0 4. 2	2. 7	( ) 7 6. 3	7 9. 0	3 1. 9 %
inc fro d isc inu d o ion Ne t t t om e m on e p era s	6 2 4.	6 2 4.		8. 0	8. 0
bu b le l l Inc i ing ttr ta to tro om e a no n‐c on int sts ere				( ) 0. 0		( ) 0. 0
Ne inc t om e	2 2 2. 5	1 1 8. 3	1 0 4. 2	1 0. 7	( ) 6 8. 3	7 9. 0	3 2. 0 %

Net profit of 222.5 M.€ from activity in Portugal in 1H18

Recurring net profit from activity in Portugal of 104.2 M.€ in 1H18, increases 32% yoy

Recurring operating income increases +8.3% (+27.3 M.€):

Financial margin goes up 7.6% (+14.7 M.€)

Commissions grow 9.4% yoy (+11.5 M.€)

Recurring costs fall 3.7% yoy (‐8.2 M.€);

Personnel costs fall 10.3% yoy (‐13.7 M.€)

Impairments (net of recoveries) of ‐11.1 M.€ in 1H18 vs. +8.5 M.€ in 1H17

Non recurring items in 1H18:

• Gains of 60 M.€ (after taxes) with the sale of the stake in Viacer
• Costs with early retirements of 5.5 M.€ (7.6 M.€ before taxes)
• Gain of 62 M. € with the sale of BPI Gestão de Activos and BPI GIF in 2Q (booked in income from discontinued operations)
• Results of 2.5 M.€ from BPI Gestão de Ativos and BPI GIF reclassified to income from discontinued operations

1) The designation "proforma" reflects the restatement of the contribution of BPI Vida e Pensões, BPI Gestão de Activos and BPI GIF for the consolidated net income in conformity with IFRS 5 rules, that is recorded in the net income from discontinued operations, and the adoption of a new format for the Income Statement, following the entry into force of IFRS9, in accordance with the guidelines of the Regulation (EU) 2017/1443 of 29 June 2017 and with the format of the financial statements used by CaixaBank (BPI's consolidating entity).

2) Non recurring in 1H17: costs with early retirements and voluntary terminations of 76.3 M.€ (105.1 M.€ before taxes), income from discontinued operations (BPI Vida e Pensões, BPI GA and BPI GIF and others) of 8.0 M.€.

Income Statement of activity in Portugal

With reclassification of the contribution of BPI Vida e Pensões, BPI Gestão de Activos and BPI GIF to "Net income from discontinued operations" (IFRS 5)

In M. $\epsilon$	1Q 17 proforma 1)	2Q 17 proforma 1)	1H17	3Q 17 proforma 1)	4Q 17 proforma 1)	2017	1Q18	2Q18	1H18
Financial margin	98.0	94.5	192.5	96.5	99.3	388.3	101.5	105.6	207.2
Income from equity instruments	0.1	6.3	6.4	0.1	0.1	6.5	$0.0\,$	1.5	1.5
Earnings of associated companies (equity method)	4.4	4.6	9.0	5.8	(1.4)	13.4	2.5	5.9	8.4
Net commission income	58.9	64.2	123.1	67.7	72.2	263.0	65.6	69.0	134.6
Net income on financial operations	7.6	7.0	14.6	8.0	(8.2)	14.5	72.5	6.4	78.9
Operating income and expenses	(1.4)	(16.2)	(17.7)	(2.2)	(3.7)	(23.5)	(0.5)	(15.3)	(15.8)
Operating income from banking activity	167.5	160.4	327.9	175.9	158.3	662.1	241.7	173.2	414.9
Personnel costs	(76.7)	(161.4)	(238.1)	(66.0)	(64.7)	(368.7)	(63.8)	(63.0)	(126.8)
Of which: Recurring personnal costs	(65.9)	(67.0)	(132.9)	(65.9)	(64.0)	(262.9)	(61.1)	(58.2)	(119.2)
Non-recurring costs 2)	(10.7)	(94.4)	(105.1)	(0.1)	(0.6)	(105.8)	(2.7)	(4.9)	(7.6)
General administrative costs	(37.9)	(40.5)	(78.4)	(38.1)	(34.1)	(150.6)	(41.8)	(42.6)	(84.4)
Depreciation and amortisation	(5.5)	(5.5)	(11.0)	(5.6)	(5.3)	(21.8)	(5.2)	(5.2)	(10.4)
Overhead costs	(120.0)	(207.4)	(327.4)	(109.6)	(104.0)	(541.1)	(110.8)	(110.9)	(221.7)
Net operating income before impairments and provisions	47.5	(47.0)	0.5	66.3	54.3	121.1	130.9	62.3	193.2
Impairments and provisions net of recoveries of loans, interest and expenses	5.2	(13.8)	(8.5)	12.4	(3.3)	0.5	11.1	0.0	11.1
Gains and losses in other assets	6.0	1.7	7.7	1.3	3.2	12.2	(0.1)	(0.5)	(0.7)
Net income before income tax	58.8	(59.1)	(0.3)	80.0	54.1	133.8	141.9	61.8	203.7
Income tax	(19.7)	22.6	3.0	(21.7)	(22.0)	(40.7)	(25.9)	(19.4)	(45.4)
Net income from continuing operations	39.1	(36.5)	2.7	58.3	32.1	93.1	115.9	42.4	158.3
Net income from discontinued operations	3.9	4.1	8.0	6.3	16.3	30.6	2.5	61.8	64.2
Income attributable to non-controlling interests	(0.0)	(0.0)	(0.0)	0.0		(0.0)
Net income	43.1	(32.4)	10.7	64.6	48.4	123.7	118.4	104.1	222.5

1) The designation "proforma" reflects the restatement of the contribution of BPI Vida e Pensões, BPI Gestão de Activos and BPI GIF for the consolidated net income in conformity with IFRS 5 rules, that is recorded in the net income from discontinued operations, and the adoption of a new format for the Income Statement, following the entry into force of IFRS9, in accordance with the guidelines of the Regulation (EU) 2017/1443 of 29 June 2017 and with the format of the financial statements used by CaixaBank (BPI's consolidating entity).

2) Costs with early retirements and voluntary terminations.

Consolidated income statement

With reclassification of the contribution of BPI Vida e Pensões, BPI Gestão de Activos and BPI GIF to "Net income from discontinued operations" (IFRS 5).

In M. $\epsilon$	1Q 17 proforma 1)	2Q 17 proforma 1)	1H17	3Q 17 proforma 1)	4Q 17 proforma 1)	2017	1Q18	2Q 18	1H18
Financial margin	97.9	94.5	192.4	96.4	99.2	388.1	101.5	105.6	207.2
Income from equity instruments	0.1	6.3	6.4	0.1	0.1	6.5	0.0	1.5	1.5
Earnings of associated companies (equity method)	56.1	64.6	120.7	72.1	(68.0)	124.8	108.6	63.1	171.7
Net commission income	59.2	64.5	123.7	68.0	72.3	264.0	65.6	69.0	134.6
Net income on financial operations	7.6	7.0	14.6	8.0	(8.2)	14.4	66.7	7.1	73.8
Operating income and expenses	(1.4)	(16.2)	(17.7)	(2.2)	(4.5)	(24.3)	(0.5)	(15.3)	(15.8)
Operating income from banking activity	219.5	220.6	440.1	242.4	91.0	773.5	341.9	231.1	573.0
Personnel costs	(77.1)	(161.8)	(238.9)	(66.1)	(64.7)	(369.7)	(63.8)	(63.0)	(126.8)
Of which: Recurring personnal costs	(66.3)	(67.4)	(133.8)	(66.0)	(64.1)	(263.9)	(61.1)	(58.2)	(119.2)
Non-recurring costs 2)	(10.7)	(94.4)	(105.1)	(0.1)	(0.6)	(105.8)	(2.7)	(4.9)	(7.6)
General administrative costs	(38.0)	(40.6)	(78.6)	(38.2)	(34.1)	(150.9)	(41.8)	(42.6)	(84.5)
Depreciation and amortisation	(5.5)	(5.5)	(11.0)	(5.6)	(5.3)	(21.9)	(5.2)	(5.2)	(10.4)
Overhead costs	(120.6)	(208.0)	(328.5)	(109.8)	(104.2)	(542.5)	(110.8)	(110.9)	(221.7)
Net operating income before impairments and provisions	99.0	12.7	111.6	132.5	(13.2)	231.0	231.1	120.2	351.3
Impairments and provisions net of recoveries of loans, interest and expenses	5.2	(14.5)	(9.2)	12.4	(3.3)	(0.1)	11.3	0.1	11.4
Gains and losses in other assets	6.0	$1.7$	7.7	1.3	3.2	12.2	(0.1)	(0.5)	(0.7)
Net income before income tax	110.2	(0.1)	110.1	146.2	(13.3)	243.0	242.3	119.8	362.0
Income tax	(24.9)	16.7	(8.2)	(28.3)	(15.3)	(51.8)	(34.8)	(25.3)	(60.2)
Net income from continuing operations	85.4	16.5	101.9	117.9	(28.6)	191.3	207.4	94.4	301.8
Net income from discontinued operations	(207.7)	4.1	(203.6)	6.3	16.3	(181.0)	2.5	61.8	64.2
Income attributable to non-controlling interests	(0.0)	(0.0)	(0.0)	0.0		(0.0)
Net income	(122.3)	20.6	(101.7)	124.3	(12.3)	10.2	209.9	156.2	366.1

1) The designation "proforma" reflects the restatement of the contribution of BPI Vida e Pensões, BPI Gestão de Activos and BPI GIF for the consolidated net income in conformity with IFRS 5 rules, that is recorded in the net income from discontinued operations, and the adoption of a new format for the Income Statement, following the entry into force of IFRS9, in accordance with the guidelines of the Regulation (EU) 2017/1443 of 29 June 2017 and with the format of the financial statements used by CaixaBank (BPI's consolidating entity).

2) Costs with early retirements and voluntary terminations.

Consolidated Balance Sheet

With the entry into force of IFRS 9, Banco BPI decided to adopt a structure of the individual and consolidated financial statements in line with the guidelines of Regulation (EU) 2017/1443 of June 29, 2017 and with the structure of the financial statements presented by CaixaBank (the consolidating entity of Banco BPI).

In M.€	3 1 De 1 7 c.	3 1 Ma 1 8 r.	3 0 Ju 1 8 n.
As ts se
h, de its l ks d o he de d de its Ca Ce Ba at ntr t s p os a n an r ma n p os	1 0 9 4. 1	8 2 6. 8	2 2 5 9. 7
l a he l d fo d fa lue hro h p f los d a F ina ia ing ir v it o ts r tr at t t nc sse a a ug ro r s a n ,	4 1 7 5. 9	2 4 6 7. 2	2 6 7 1. 6
fa ir v lue hro h o he he ive inc t t a ug r c om p re ns om e
l a d c F ina ia ise ts at ort t nc sse am os	2 2 5 0 6. 7	2 4 4 4 8. 7	2 5 6 3 6. 4
f w h ic h: O
Lo Cu s t sto an o me rs	2 1 6 3 8. 2	2 2 0 4 3. 8	2 2 5 0 5. 8
bs d d c d ly l le d Inv in i iar ies iat ies j int tm ts ntr es en su ass oc e om p an an o co o ,	7 9 4. 5	7 5 2. 2	7 1 7. 0
i b le Ta ets ng ass	3 4 5.	2. 4 4	3 8. 6
b le Int i ets an g ass	4 2. 3	4 0. 1	4 5. 3
Ta ts x a sse	4 5 3. 2	4 0 1. 5	4 2 1. 6
he l d fo le d d d o No isc inu ion t a ts t t n‐c urr en sse r s a an on e p era s	7 3. 3	6 4. 8	5 4. 6
Ot he ts r a sse	9 4 5 4.	3 2 0. 5	3 3. 6 4
l a To ta ts sse	2 9 6 4 0. 2	2 9 3 6 4. 2	3 2 2 7 8. 3
b l d s ha ho l de ' e L ia i it ies ity an re rs q u
ina ia l l ia b i l it ies he l d fo d ing F r tr nc a	0. 0 1 7	0. 3 1 7	6 1 5 4.
l l b l d c F ina ia ia i it ies ise at ort t nc am os	2 5 9 6 1. 4	2 5 8 0 2. 0	2 8 2 6 1. 8
l ks d d de Ce Ba Cre it Ins itu ion its ntr t t a n an s p os	3 9 7 8. 0	4 0 3 8. 7	5 2 9 4. 7
de Cu its sto me rs p os	2 0 7 1 3. 6	2 0 9 1 1. 7	2 2 1 1 3. 6
hn ica l p is ion Te c rov s	0. 0	0. 0	0. 0
bt d De it ies iss se cu r ue	1 0 2 0. 0	6 1 6. 9	5 9 3. 6
f w h h: bo d d de bt O ic ina te su r	3 0 5. 1	3 0 0. 3	3 0 4. 4
f Ot he ina ia l l ia b i l it ies r nc	2 4 9. 8	2 3 4. 6	2 9. 8 5
is ion Pro v s	6 4. 2	6 4. 2	6 6. 9
l b l Ta ia i it ies x	7 0. 6	7 3. 8	7 2. 5
l b l he l d fo le d d d o No ia i it ies isc inu ion t t t n‐c urr en r s a an on e p era s	4. 5	4. 6	0. 0
Ot he l ia b i l it ies r	8 5 4 5.	3 1 6. 6	9 6. 9 5
l l ia b i l it ies To ta	2 6 8 1 6. 6	2 6 4 3 1. 5	2 9 1 5 2. 6
ha ho l de ' e bu b le he ha ho l de f S ity i B P I at tr ta to t re rs q u s re rs o	2 8 2 3. 6	2 9 3 2. 7	3 1 2 5. 7
No l l ing int tro sts n c on ere	0. 0	0. 0	0. 0
l ha ho l de ' e ity To S ta re rs q u	2 8 2 3. 6	2 9 3 2. 7	3 1 2 5. 7
l l ia b i l it ies d ha ho l de ' e ity To S ta an re rs q u	2 9 6 4 0. 2	2 9 3 6 4. 2	3 2 2 7 8. 3

Consolidated profitability and efficiency metrics

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

	3 0 Ju 1 7 n.	3 0 Ju 1 8 n.
/ fro ba k d l f e d bs d Op in in in iv i i i iar ie A T A t t ty ts ty te er a g co m e m n g ac an re su o q u ac co un su s	% 1. 7	3. 9 %
/ f i be fo io d in i bu b le l l in in Pr A T A t ta t t tr ta to tro te ts o re xa n a n co m e a n on ‐co n g re s	‐0 3 %	2. % 1
f fo / ' e i be io d in i bu b le l l in in ha ho l de i Pr t ta t t tr ta to tro te ts ty o re xa n a n co m e a n on ‐co n re s av er ag e s re rs q g u ( lu d l l ) in in in in tro te ts c g no n‐ co n g re s	‐4 3 %	2 0. 9 %
1 / l c in in fro ba k in iv i d l f e i d s bs i d iar ie Pe Op ts t t ty ts ty te s rso nn e os er a g co m e m n g ac an re su o q u ac co un u	% 4 6. 9	2 0. 8 %
1 / he d c fro ba k d l f e d s bs d Ov Op in in in iv i i i iar ie ts t t ty ts ty te s er a os er a g co m e m n g ac an re su o q u ac co un u	8 0. 3 %	3 % 7. 4
( ) de i io Lo t to ts t an s ne p os ra	1 0 6 %	1 0 4 %

1) Excluding early‐retirement costs.

In addition to the financial information prepared in accordance with the International Financial Reporting Standards (IFRS), BPI uses ^a number of indicators in the analysis of the performance and financial position which are classified as Alternative Performance Indicators (APM) in accordance with the guidelines set by the European Securities and Markets Authority or ESMA about the disclosure of Alternative Performance Measures by entities published on 5 October 2015 ( ESMA / 2015/ 1415). These indicators, which were not audited, are considered additional disclosures and in no case replace the financial information prepared in accordance with the IFRS. In addition, the way Banco BPI defined and calculated these indicators may differ from the way similar indicators are computed by other companies and may therefore not be comparable. The following is ^a list of alternative performance indicators used by BPI, together with ^a reconciliation between certain management indicators and the consolidated financial statements and their notes prepared in accordance with IFRS.

EARNINGS, EFFICIENCY AND PROFITABILITY INDICATORS

Financial margin (RCL) = Financial margin (narrow sense) + Technical result of insurance contracts + Net commissions relating to amortised cost

Net commissions income (RCL) = Net commissions income + Gross margin on unit links

Operating income from banking activity (RCL) = Financial margin (RCL) + Income from equity instruments (RCL) + Net commissions income (RCL) + Earnings of associated companies (equity method) (RCL) + Net income on

financial operations + Operating income and expenses

Commercial banking income = Financial margin (RCL) + Income from equity instruments (RCL) + Net commissions income (RCL) + Earnings of associated companies (equity method) (RCL) excluding the contribution of stakes in African banks

Overhead costs = Personnel costs + General administrative expenses + Depreciation and amortisation

Adjusted overhead costs = Personnel costs excluding cost with early retirements and voluntary terminations and (only in 2016) gains with the revision of the Collective Labour Agreement (ACT) + General administrative expenses + Depreciation and amortisation

Net operating income before impairments and provisions (RCL) = Operating income from banking activity (RCL) ‐ Overhead costs

Net income before income tax (RCL) = Net operating income before impairments and provisions (RCL) + Recovery of loans, interest and expenses ‐ Impairment losses and provisions for loans and guarantees, net ‐ Impairment losses and other provisions, net

Cost‐to‐income ratio (efficiency ratio) 1) = Overhead costs / Operating income from banking activity (RCL)

Adjusted overhead costs‐to‐commercial banking income 1) = Overhead costs, excluding costs with early‐retirements and voluntary terminations and (only in 2016) gains with the revision of the Collective Labour

Agreement (ACT) / Commercial banking 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) related to 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 other comprehensive income (reserves).

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

Note:

The term "RCL" or "Reclassified captions" identifies income and costs captions that have been reclassified in this earnings release, and repositioned in the structure of the income statement according to the format used by CaixaBank (BPI's consolidating entity). The underlying accounting criteria were not affected by the change in the format adopted.

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.

BALANCE SHEET AND FUNDING INDICATORS

On‐balance sheet Customer resources = Deposits + Capitalisation insurance of subsidiaries fully consolidated + Participating units in consolidated mutual funds

Being:

• Deposits = Demand deposits and other + Term and savings deposits + Accrued interest + Retail bonds (Fixed / variable rate bonds and structured products placed with Customers + Deposits certificates + Subordinated bonds placed with Customers)
• Capitalisation insurance of subsidiaries fully consolidated (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 + Funds assets 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)

Notes:

(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.

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

Loan‐to‐deposit ratio = Net loans to Customers / Customer deposits

ASSET QUALITY INDICATORS

Impairments for loans and guarantees as % of the loan portfolio 1)= Impairment losses and provisions for loans and guarantees, net / Average value in the period of the performing loan portfolio

Cost of credit risk as % of the loan portfolio 1)= (Impairment losses and provisions for loans and guarantees, net ‐ Recovery of loans, interest and expenses) / Average value in the period of the performing loan 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 by impairments = (Loan impairments + Impairments and provisions for guarantees and commitments) / Non‐performing exposures (NPE)

Coverage of NPE by impairments and associated collateral = (Loan impairments + Impairments and provisions for guarantees and commitments + Collateral associated to credit ) / Non‐performing exposures (NPE)

1)Ratio referring to the last 12 months, except when indicated otherwise.

2)The ratio can be computed for the cumulative period since the beginning of the year or for the quarter, both in annualised terms, the cases in which it will be clearly marked.

ASSET QUALITY INDICATORS

Non performing loans ratio (Bank of Spain criteria) ⁼Non performing loans (Bank of Spain criteria) / (Gross customer loans + guarantees)

Non performing loans (Bank of Spain criteria) coverage ratio = (Loans impairments + 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 = (Loans impairments + 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

MARKET INDICATORS

Earnings per share (EPS) = Net income / Weighted average no. of shares in the period (basic or diluted)

The earnings per shares (basic or diluted) is calculated in accordance with IAS 33 ‐ Earnings per share.

Cash‐flow after taxes (CF per share or CFPS) = Cash‐flow after taxes / Weighted average no. of shares in the period.

Note: the denominator corresponds to the weighted average no. of shares used in the calculation of earnings per share (basic or diluted).

Book value per share (BV per share or BVPS) ⁼Shareholders' equity attributable to BPI shareholders / No. of shares at the end of the period

Note: the denominator corresponds to the outstanding number of shares after deducting the treasury stocks portfolio and is adjusted for capital increases, whether by incorporation of reserves (bonus issue) or subscription reserved for shareholders (rights issue), amongst other events, in a similar way to the calculation of earnings per share.

Price to earnings ratio (PER) = Stock market share price / Earnings per share (EPS)

Price to cash flow (PCH) = Stock market share price / Cash‐flow after taxes (CFPS)

Price to book value (PBV) = Stock market share price / Book value per share (BVPS)

Earnings yield = Earnings per share (EPS) in the year / Stock market share price (at beginning or end of the year)

Dividend yield = Dividend per share relating to the year / Stock market share price (at beginning or end of the year)

With the entry into force of IFRS9, in the beginning of 2018, Banco BPI decided to adopt a structure of the individual and consolidated financial statements in accordance with the guidelines of the Regulation (EU) 2017/1443 of 29 June 2017 and with the format of the financial statements used by CaixaBank (BPI's consolidating entity).

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 2018) with the structure that will be used in the financial statements and respective notes of the Annual and Half Year Reports.

Stru sed in t he Res ults ' Pr tion ctu nta re u ese	Jun .18	Jun .18	New ted in t he f inan cial d re ctiv str uct stat ent ote ure pre sen em s an spe e n s
l ma Fina ncia rgin	20 7.2	207	.2 N et i inc nte rest om e
from uity ins Inco trum ent me eq s	1.5	1.5	Div ide nd i nco me
f as d co (eq tho d) Ear nin iate nies ui ty gs o soc mpa me	8.4	8.4	Sha f th ofit (‐) l of sub sid d as nted for he e eth od inve s in arie s, jo int iate usi qui stm ent ture ng t ty m re o e pr or oss ven s an soc s ac cou
mis sio n in Net com com e	13 4.6	158 (23 .4)	.0 F nd c mis sio n in ee a om com e Fee d co issi Exp an mm on ens es
Net inco on f ina ncia l op tion me era s	78 .9	3.5 9.0 60. 0.4 5.7	r (‐) los h th e de of fina l as d li abi litie d at fai lue thro ugh fit o r lo Gai wit gnit ion ncia sets t m net ns o ses reco an s no eas ure r va pro ss, r (‐) Gai los din g fi cia l as d li abi litie tra sets et ns o ses on nan an s, n trad fina l as nda ly a t fa alu e th gh p rofi los 3 N ing ncia tori ir v sets t or on‐ ma rou s Gai r (‐) los fro m h edg ntin et ns o ses e ac cou g, n r (‐) Exc han ge d i ffe [ga in o los s], n et ren ces
and Ope rati ng i nco me exp ens es	(15 .8)	5.1 (20 .9)	Oth atin g in er o per com e Oth atin g Ex er o per pen ses
Ope rati ng i fro m b ank ing acti vity nco me	4.9 41	414	.9 O atin g in per com e
Per nel ts son cos	(12 ) 6.8	(12 6.8	) St aff Exp ens es
l ad Gen min istr ativ sts era e co	(84 .4)	(84 .4)	Oth dm inis ive trat er a exp ens es
reci atio nd a rtis atio Dep n a mo n	(10 .4)	(10 .4)	Dep reci atio n
Ove rhe ad c ost s	(22 1.7)	(22 1.7)	rhe ad c Ove ost s
e b efo d p Net ting inc re i airm isio ent op era om mp s an rov ns	19 3.2	193	.2 T OTA L O PER ATI NG INC OM E, N ET
d p f re s of loa Imp airm isio erie inte ent et o rest s an rov ns n cov ns, and exp ens es	11 .1	(2.5 13.6	) Pr ovi sio r (‐) al o f pr ovi sio ns o rev ers ns or ( ‐) re sal of i on f l as d at fai lue thro ugh fit o r lo Imp airm irm ina ncia ent ent sets t m ver mpa no eas ure r va pro ss
nd loss her Gai es i n ot ets ns a ass	(0.7 )	(1.0 0.4	) Im r (‐) al o f im n‐fi l as pai nt o pai nt o cia sets rme rev ers rme n no nan r (‐) Gai los de gni t ion of fin ial oth han he ld f ale, ets er t net ns o ses on reco non anc ass or s
e b efo Net inc re i tax om nco me	20 3.7	203	rofi (‐) loss be fore fro .7 P inu ing rati t or tax ont m c ope ons
Inco tax me	(45 .4)	(45 .4)	r (‐) inc late d to fit o r lo ss f ntin uin tion Tax Exp ens es o om e re pro rom co g op era s
Net inc e fr tinu ing rati om om con ope ons	15 8.3	158	R (‐ ) LO .3 P ROF IT O SS A FTE R TA X FR OM CO NTI NU ING OP ERA TIO NS
from dis ed o Net inco tinu atio me con per ns	64 .2	64.	rofi (‐) loss aft ax f dis ed o 2 P tinu atio t or er t rom con per ns
ibu tab le to llin g in Inco attr ntro tere sts me no n‐co	0.0	0.0	fit o r (‐) los trib ble ino rity int st [ llin g in sts] Pro s at uta to m ntro tere ere non ‐co
Net inc om e	22 2.5	222	.5 P ROF IT O R (‐ ) LO SS A TTR IBU TAB LE T O O WN ERS OF TH E PA REN T

Investor Relations

Tel. +351 226 073 337E‐mail: investor.relations@bancobpi.pt Website: www.ir.bpi.pt

Ricardo Araújo Tel: +351 226 073 119E‐mail: luis.ricardo.araujo@bancobpi.pt

Banco BPI, S.A. Publicly held company 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