Banco Comercial Portugues

Quarterly Report • Nov 9, 2016

Disclaimer

• The information in this presentation has been prepared under the scope of the International Financial Reporting Standards ('IFRS') of BCP Group for the purposes of the preparation of the consolidated financial statements under Regulation (CE) 1606/2002
• The figures presented do not constitute any form of commitment by BCP in regard to future earnings
• First 9 months figures for 2015 and 2016 not audited
• The business figures presented exclude the former Banco Millennium Angola

• Assumes maintenance of the framework regulating the limits to the deductions of credit impairment effective as at 31 December 2015

• Highlights

• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International operations
• Conclusions

Summary	• Earnings excluding non-usual items improves by €67.9 million, efficiency improves by 3pp and balance sheet strengthens, with NPE total coverage* now at 99%; total earnings significantly affected by non-usual impairment charges related to the legacy portfolio, aimed at reinforcing credit coverage.
Profitability and efficiency Continued improvement of recurring earnings	• Core net income up 8.4% to €665.8 million, resulting in cost to core income improving to 52.0% (cost to income of 46.0%). • Earnings excluding non-usual items* improved to +€74.5 million (€6.5 million in the same period of 2015). Total results were negative due to the impact of non-usual impairment charges: -€53.8 million in the 3rd quarter of 2016, -€251.1 million in the first 9 months of 2016.
Asset quality Coverage reinforced significantly	to 11.0% as at September 30th • NPL>90d ratio fell 2016 from 11.5% as at the same date of 2015; NPL>90d total coverage strengthened to 119.3% (coverage by loan-loss reserves: 65.5%). Booking of €100 million of additional impairment charges in Portugal in • 3Q16 (€400 million in 9M16), resulting in NPE total coverage strengthening to 99% (91% as at September 30th 2015), supporting the target of <€7.5 billion NPE for December 2017.

* Non-usual items in 9M16: gains on Visa transaction, devaluation of corporate restructuring funds and additional impairment charges to increase coverage; non-usual items in 9M15: capital gains on Portuguese sovereign debt and devaluation of corporate restructuring funds. | ** By loan-loss reserves, expected loss gap and collaterals.|*** Core net income = net interest income + net fees and commission income – operating costs, core income = net interest income + net fees and commission income.

* Core net income = net interest income + net fees and commission income – operating costs. | ** Non-usual items in 9M16: gains on Visa transaction, devaluation of corporate restructuring funds and additional impairment charges to increase coverage; non-usual items in 9M15: capital gains on Portuguese sovereign debt and devaluation of corporate restructuring funds. | *** Based on Customer deposits and net loans to Customers. | **** Estimates.

Mobile banking Residents abroad "Best Private Banking " in Portugal by The Banker magazine Over 575,000 active users; #1 in Customer satisfaction with internet and mobile banking (Marktest) 20,000 new Customers in 2016, a 37% growth YoY Individuals Companies Customers Portugal 2020 1/3 of the approved projects are from Millennium bcp Customers Roadshow Portugal 2020 with over 1,000 Customers Small companies New production of over €1bn in loans to small companies until September 2016 Start ups New €70 million protocol with EIB to finance Portuguese start-ups Acquired over 100,000 new Customers in 2016, (+7% YoY) Digital Private Banking Companies "Best Consumer Digital Bank" in Portugal by Global Finance "Best bank (overall) for companies", "Most Convenient" and "Most Innovative" by DATA E

8

• Highlights
• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International operations
• Conclusions

9

Earnings excluding non-usual items improve

(million euros)	9M15	9M16	Impact on earnings
Core net income	614.1	665.8	+51.7
Mandatory contributions (Portugal and Poland)	-47.6	-96.4	-48.9
Other operating income	141.5	189.2	+47.7
Operating net income (bef. impairment and provisions)	708.0	758.5	+50.5
Impairment and provisions	-709.5	-584.5	+125.1
Net income before income tax	-1.5	174.1	+175.6
Income taxes, non-controlling interests and disc. operations	8.1	-99.6	-107.7
Net income excluding non-usual items	6.5	74.5	+67.9
Gains on Visa transaction	0.0	47.1	+47.1
Capital gains on Portuguese sovereign debt in 2015	272.9	0.0	-272.9
Devaluation of corporate restructuring funds	-14.9	-90.6	-75.7
Additional impairment charges (to increase coverage)*	0.0	-282.0	-282.0
Total non-usual items, net of taxes	258.0	-325.6	-583.6
Net income	264.5	-251.1	-515.6

Earnings excluding non-usual items improve...

… as well as core net income, reflecting strong performance in Portugal

Net interest income: impact of the significant decrease of Euribor rates dampened by a lower cost of deposits...

… whereas FX devaluation led to lower commissions

Performance of other income influenced by gains on PT sovereign debt in 2015, and by gains on the Visa transaction and higher regulatory contributions in 2016

Cost reduction continues...

... making Millennium bcp one of the most efficient banks in Portugal and in the Eurozone

We have reinforced the balance sheet with a significant amount of additional impairment and provision charges...

… with lower delinquency and increased coverage

Diversified and collaterised portfolio

• Loans to companies accounted for 46% of the loan portfolio at September 30, 2016, including 10% to construction and real-estate sectors
• 92% of the loan portfolio is collateralised
• Mortgage accounted for 46% of the loan portfolio, with low delinquency levels and an average LTV of 67%
• Real estate accounts for 87% of total collateral value

• 82% of the real estate collateral is residential

• Highlights

• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International operations
• Conclusions

Deposits influenced by FX impact in international operations; individuals in Portugal stand out

Credit portfolio reflects support to the economy in key business sectors

Continued improvement of the liquidity position

Lower refinancing needs in the medium to long term, Customer deposits are the main funding source

• Net usage of ECB funding at €4.9 billion (€4.0 billion related to TLTRO), compared to €5.9 billion at the end of the 3rd quarter of 2015 (TLTRO: €1.5 billion)
• €13.1 billion (net of haircut) of eligible assets available for refinancing operations with ECB, with a €8.2 billion buffer
• Customer deposits account for 78% of funding

• Future debt repayments (medium-long term) significantly lower than in the past

• Highlights

• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International operations
• Conclusions

Capital at adequate levels

Capital above minimum requirements, with high leverage ratios and RWA density

• Highlights
• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International operations
• Conclusions

Portugal: deleveraging improves liquidity position

Earnings excluding non-usual items improve

Non-usual items
	9M15	9M16
Net income excluding non-usual items	-157.5	-42.5
Gains on the Visa transaction	0.0	20.9
Gains on Portuguese sovereign debt in 2015	272.9	0.0
Devaluation of corporate restructuring funds	-14.9	-90.6
Add. impairment charges (increase coverage)*	0.0	-282.0
Total of non-usual items, net	258.0	-351.8
Net income	100.5	-394.3

• Net income of -€394.3 million in the first nine months of 2016.
• Net income of -€42.5 million in the first nine months 2016 excluding non-usual items, a €115.0 million improvement compared to -€157.5 million in the same period of 2015.
• Non-usual items in the first nine months of 2016: gains on Visa transaction, devaluation of corporate restructuring funds and additional impairment charges to increase coverage; Non-usual items in the first nine months of 2015: capital gains on Portuguese sovereign debt and devaluation of corporate restructuring funds.

Improvement trend on core income and operating costs in Portugal continues

Lower cost of deposits partially offset by the decrease of credit volumes and Euribor

• Increase in net interest income compared to the first nine months of 2015, reflecting the impact of the consistent reduction of the cost of term deposits and the reduction of overdue loans, more than compensating the negative effect of the reduction of Euribor rates and of lower credit volumes, as well as of the lower contribution from the securities portfolio
• Decrease in net interest income compared to the previous quarter, mainly attributable to the lower credit volume and lower contribution from the securities portfolio, more than offseting the positive impact of the continuation of the reduction of the cost of term deposits and of lower funding costs, the latter partially offset by the effect of the reduction of Euribor rates on loan interest

Continued effort to reduce the cost of deposits

• Continued improvement of the spread of the portfolio of term deposits: from -1.3% in the first nine months of 2015 to -0.9% in the same period of 2016; September's front book priced at an average yield of 29bp, substantially below current back book's
• Spread on the total loan book at 2.9% in the 1st nine months of 2016 (3.0% at the same period of 2015)
• NIM stood at 1.6% (1.4% in the 1st nine months of 2015)

(Million euros) 9M15 9M16 YoY Banking fees and commissions 293.1 300.7 +2.6% Cards and transfers 73.9 74.5 +0.8% Loans and guarantees 90.7 80.9 -10.8% Bancassurance 56.5 57.9 +2.5% Customer account related 62.2 68.1 +9.5% Other fees and commissions 9.9 19.4 +96.0% Market related fees and commissions 40.6 42.5 +4.5% Securities operations 35.6 38.1 +6.9% Asset management 5.0 4.4 -12.4% Total fees and commissions 333.7 343.2 +2.8%

Continuous reduction of costs, in line with the new commercial approach

Reinforced coverage of NPL>90d

NPEs are decreasing, coverage is increasing and prospects are favourable

• Measures implemented in the last years with positive impact on NPEs: strengthening of the monitoring of credit quality, implementation and development of new assessment models, new internal regulations and recovery model, improvement to the risk management governance model.
• Increase of NPE total coverage* to 99%, supporting the target of <€7.5 billion at December 2017.
• Key measures under the plan to bring down the level of NPEs:
• Stepping up write-offs;
• Loan sales, especially strongly-collateralised corporates and, for individuals, loans with low likelihood of recovery;
• Preventing mortgage cases from reaching courts and reducing the recovery period for cases handled by external law offices.

Foreclosed assets sold above book value

• Highlights
• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International operations
• Conclusions

Contribution from international operations

(Million euros)

	9M15	9M16	Δ % Δ % local euros currency 130.3 +15.5% 51.8 +21.9% 28.5 +40.9% 6.5 -33.3% 217.0 +17.2% -82.3 -- 134.8 134.8 134.8		ROE
International operations
Poland	112.8			+9.7%	11.4%
Mozambique	42.5			-23.3%	21.6%
Angola*	20.2			-1.0%
Other	9.7			-34.4%
Net income	185.3			-3.6%
Non-controlling interests Poland and Mozambique	-64.7
Exchange rate effect	28.7
Total contribution international operations	149.3			-9.7%
On a comparable basis:
Millennium Poland shareholding at 50.1% in 1Q15	143.5			-6.1%
Same as above without FX effect	114.8			+17.4%

* Contribution of the Angolan operation.

Contribution

international operations increases on a comparable basis

from

Note: subsidiaries' net income presented for 2015 at the same exchange rate as of 2016 for comparison purposes, without FX effect.

Poland: growing Customer funds

New banking tax and Visa Europe transaction strongly impact net earnings

Stronger net interest income, other income impacted by Visa Europe transaction

(Million euros)

* Pro forma data. Margin from derivative products, including those from hedging FX denominated loan portfolio, is included in net interest income, whereas in accounting terms, part of this margin (€9.4 million in 9M15 and €7.4 million in 9M16) is presented in net trading income. FX effect excluded. €/Zloty constant at September 2016 levels: Income Statement 4.37407778; Balance Sheet 4.3192.

Improved credit quality and coverage

Mozambique: strong volume growth

Increasing net income in a complex environment

Growth in core income partially offset by the increase in operating costs

Credit quality and coverage

• Highlights
• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International operations
• Conclusions

			Consolidated
	9M15	9M16	2018
CT1 / CET1	13.2% phased 10.0% fully	12.2% phased 9.5% fully	> 11%
Loans to Deposits	104%	100%	< 100%
Cost - Income	41.0%**	46.0%	< 43%
Cost - Core Income	55.3%	52.0%	< 50%
Cost of risk	148 bp	221 bp	< 75 bp
ROE	8.1%	-7.7%	> 11% With a 11% fully implemented CET1

Appendix

Sovereign debt portfolio

Sovereign debt portfolio totals €8.1 billion, €1.6 billion of which maturing in less than 1 year

The value of Polish sovereign portfolios increased from September 30th 2015; exposure to Portuguese, Angolan and Mozambican sovereign debt decreased

53

Sovereign debt portfolio

(Million euros, September 2016)

	Portugal	Poland	Mozambique	Other	Total
Trading book*	184	96	0	37	317
≤ 1 year	6	13	0	36	55
> 1 year and ≤ 2 years	118	5	0	0	123
> 2 years and ≤ 5 years	57	54	0	0	111
> 5 years and ≤ 8 years	0	10	0	0	10
> 8 years and ≤ 10 years	3	14	0	0	17
> 10 years	0	0	0	0	1
Banking book**	4,172	3,310	246	52	7,780
≤ 1 year	822	530	149	0	1,501
> 1 year and ≤ 2 years	408	986	33	50	1,477
> 2 years and ≤ 5 years	527	1,712	64	0	2,303
> 5 years and ≤ 8 years	2,015	7	0	1	2,023
> 8 years and ≤ 10 years	399	75	0	1	475
> 10 years	1	0	0	0	2
Total	4,355	3,406	246	89	8,097
≤ 1 year	827	543	149	36	1,556
> 1 year and ≤ 2 years	525	991	33	50	1,600
> 2 years and ≤ 5 years	584	1,766	64	0	2,413
> 5 years and ≤ 8 years	2,015	17	0	1	2,034
> 8 years and ≤ 10 years	402	89	0	1	492
> 10 years	2	0	0	0	2

Consolidated earnings

(million euros)	9M15	9M16	Impact on earnings
Net interest income	876.6	907.0	+30.4
Net fees and commissions	498.0	481.1	-16.8
Other operating income	481.0	183.8	-297.2
Of which: Visa transaction	0.0	91.0	+91.0
Of which: Mandatory contributions in Portugal	-32.6	-51.7	-19.1
Of which: Capital gains on Portuguese sovereign debt	387.1	0.0	-387.1
Banking income	1,855.6	1,571.9	-283.7
Staff costs	-430.2	-410.4	+19.8
Other administrative costs and depreciation	-330.3	-311.9	+18.3
Operating costs	-760.5	-722.4	+38.1
Operating net income (before impairment and provisions)	1,095.1	849.5	-245.6
Of which: core net income	614.1	665.8	+51.7
Loans impairment (net of recoveries)	-613.6	-870.2	-256.6
Other impairment and provisions	-117.0	-242.8	-125.8
Of which: Devaluation of corporate restructuring funds	-21.1	-128.6	-107.4
Impairment and provisions	-730.7	-1,113.0	-382.3
Net income before income tax	364.4	-263.5	-627.9
Income taxes	-67.1	68.2	+135.3
Non-controlling interests	-105.0	-101.0	+3.9
Net income from discontinued or to be discontinued operations	72.2	45.2	-27.0
Net income	264.5	-251.1	-515.6

Consolidated balance sheet

(Million euros)

	30 September	30 September		30 September	30 September
	2016	2015		2016	2015
Assets			Liabilities
Cash and deposits at central banks	2,618.3	1,514.5	Amounts owed to credit institutions	11,302.7	10,288.9
Loans and advances to credit institutions			Amounts owed to customers	48,937.1	50,643.8
Repayable on demand	421.9	984.0	Debt securities	3,919.2	4,909.7
Other loans and advances	1,628.2	976.1	Financial liabilities held for trading	610.5	828.4
Loans and advances to customers	48,805.8	52,478.2	Hedging derivatives	383.1	549.0
Financial assets held for trading	1,090.8	1,481.1	Provisions for liabilities and charges	280.0	300.8
Financial assets available for sale	10,680.0	11,556.6	Subordinated debt	1,682.9	1,683.8
Assets with repurchase agreement	20.0	10.5	Current income tax liabilities	5.5	7.3
Hedging derivatives	106.1	85.1	Deferred income tax liabilities	2.2	16.7
Financial assets held to maturity	415.6	432.9	Other liabilities	970.0	1,020.1
Investments in associated companies	574.6	313.9	Total Liabilities	68,093.2	70,248.5
Non current assets held for sale	2,112.8	1,674.5
Investment property	61.9	147.6	Equity
Property and equipment	463.5	673.5	Share capital	4,094.2	4,094.2
Goodwill and intangible assets	188.8	206.3	Treasury stock	(3.1)	(1.1)
Current tax assets	35.0	39.9	Share premium	16.5	16.5
Deferred tax assets	2,790.7	2,505.4	Preference shares	59.9	59.9
Other assets	882.1	904.9	Other capital instruments	2.9	2.9
	73,041.6	75,985.0	Legal and statutory reserves	245.9	223.3
			Fair value reserves	(66.1)	9.0
			Reserves and retained earnings	(22.8)	50.8
			Net income for the year attrib. to Shareholders	(251.1)	264.5
			Total equity attrib. to Shareholders of the Bank	4,076.3	4,720.0

73,041.6 75,985.0

Non-controlling interests 872.0 1,016.5 Total Equity 4,948.4 5,736.5 Consolidated income statement Per quarter

			Quarterly
	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16
Net interest income	305.1	314.0	292.4	308.4	306.2
Dividends from equity instruments	0.3	6.2	2.0	3.8	1.2
Net fees and commission income	161.8	162.3	163.9	156.4	160.8
Other operating income	-12.3	-66.4	-12.4	-75.6	-8.3
Net trading income	26.9	33.5	28.3	154.5	29.7
Equity accounted earnings	4.5	-1.6	13.9	23.8	22.9
Banking income	486.4	447.9	488.1	571.3	512.5
Staff costs	141.6	143.7	138.4	135.2	136.7
Other administrative costs	94.4	100.0	91.8	93.1	90.1
Depreciation	13.3	13.1	12.8	12.7	11.5
Operating costs	249.3	256.8	243.1	241.0	238.3
Operating net income bef. imp.	237.1	191.1	245.1	330.3	274.2
Loans impairment (net of recoveries)	150.0	204.2	160.7	458.0	251.5
Other impairm. and provisions	25.5	43.0	15.4	182.6	44.9
Net income before income tax	61.7	-56.1	69.1	-310.3	-22.2
Income tax	21.0	-29.4	15.0	-93.3	10.1
Non-controlling interests	36.1	20.7	36.4	43.1	21.5
Net income (before disc. oper.)	4.5	-47.3	17.7	-260.2	-53.8
Net income arising from discont. operations	19.3	18.1	29.0	16.2	0.0
Net income	23.8	-29.2	46.7	-243.9	-53.8

Internatio nal o peratio ns Gro up P o rtugal T o tal B ank M illennium (P o land) M illennium bim (M o z.) Other int. o peratio ns Sep 15 Sep 16 Δ % Sep 15 Sep 16 Δ % Sep 15 Sep 16 Δ % Sep 15 Sep 16 Δ % Sep 15 Sep 16 Δ % Sep 15 Sep 16 Δ % Interest income 1,631 1,430 -12.3% 1,036 882 -14.9% 594 547 -7.9% 418 389 -6.9% 172 154 -10.6% 4 4 4.0% Interest expense 754 523 -30.7% 523 339 -35.1% 231 183 -20.7% 173 134 -22.8% 63 52 -16.5% -5 -3 40.8% N et interest inco me 877 907 3.5% 514 543 5.7% 363 364 0.3% 244 255 4.4% 109 101 -7.2% 9 7 -19.6% Dividends from equity instruments 3 7 99.6% 3 6 >100% 1 0 -20.5% 1 0 -20.2% 0 0 -25.5% 0 0 -- Intermediatio n margin 880 914 3.8% 517 549 6.4% 363 364 0.3% 245 256 4.4% 109 101 -7.2% 9 7 -19.6% Net fees and commission income 498 481 -3.4% 334 343 2.8% 164 138 -16.0% 110 97 -11.6% 36 23 -35.2% 19 18 -4.9% Other operating income -54 -96 -80.0% -52 -47 9.9% -1 -49 <-100% -11 -53 <-100% 10 4 -65.7% -1 0 17.8% B asic inco me 1,325 1,299 -1.9% 798 846 5.9% 526 453 -13.9% 343 300 -12.6% 156 128 -17.6% 2 7 2 4 -9.6% Net trading income 506 213 -58.0% 432 88 -79.5% 74 124 66.9% 40 98 >100% 31 24 -24.6% 3 2 -36.3% Equity accounted earnings 25 61 >100% 25 51 98.9% 0 10 >100% 0 0 100.0% 0 0 -- 0 10 -- B anking inco me 1,856 1,572 -15.3% 1,255 985 -21.6% 600 587 -2.2% 383 398 4.1% 187 152 -18.8% 3 0 3 7 20.4% Staff costs 430 410 -4.6% 280 274 -2.1% 151 136 -9.3% 99 95 -3.6% 38 28 -25.5% 14 13 -6.5% Other administrative costs 289 275 -5.0% 174 170 -2.7% 115 105 -8.4% 74 73 -1.8% 36 28 -22.3% 5 5 -7.5% Depreciation 41 37 -9.7% 23 21 -7.4% 18 16 -12.6% 9 9 6.1% 9 6 -31.2% 0 0 -17.4% Operating co sts 760 722 -5.0% 477 465 -2.5% 284 258 -9.2% 182 178 -2.4% 82 62 -24.7% 19 18 -6.8% Operating net inco me bef. imp. 1,095 850 -22.4% 778 520 -33.2% 317 330 4.1% 200 221 10.1% 105 9 0 -14.1% 11 19 66.0% Loans impairment (net of recoveries) 614 870 41.8% 545 817 49.7% 68 53 -21.7% 49 35 -27.8% 20 17 -11.8% 0 1 >100% Other impairm. and provisions 117 243 >100% 114 234 >100% 3 9 >100% 2 9 >100% 1 0 <-100% 0 0 <-100% N et inco me befo re inco me tax 364 -263 <-100% 119 -531 <-100% 245 267 9.0% 149 177 18.2% 8 5 7 3 -13.9% 11 18 57.2% Income tax 67 -68 <-100% 19 -136 <-100% 48 68 41.1% 31 46 51.5% 16 20 26.0% 1 1 -10.1% Non-controlling interests 105 101 -3.7% 0 0 29.4% 105 101 -3.8% 0 0 -- 1 1 -24.6% 104 101 -3.6% N et inco me (befo re disc. o per.) 192 -296 <-100% 101 -394 <-100% 9 2 9 8 6.7% 119 130 9.7% 6 8 5 2 -23.3% -95 -84 11.1% Net income arising from discont. operations 72 45 -37.4% 57 37 -35.9% 57 37 -35.9% N et inco me 265 -251 <-100% 149 135 -9.7% -37 -47 -27.5%

Glossary (1/2)

Capitalisation products – includes unit linked saving products and retirement saving plans ("PPR", "PPE" and "PPR/E").

Commercial gap – total loans to customers net of BS impairments accumulated minus on-balance sheet customer funds.

Cost of risk, gross (expressed in bp)- ratio of impairment charges accounted in the period to customer loans (gross).

Cost of risk, net (expressed in bp)- ratio of impairment charges (net of recoveries) accounted to customer loans (gross).

Cost to income – operating costs divided by net operating revenues.

Cost to core income - operating costs divided by the net interest income and net fees and commission income.

Core income - net interest income plus net fees and commission income.

Core net income - corresponding to net interest income plus net commissions deducted from operating costs.

Coverage of credit at risk by balance sheet impairments – total BS impairments accumulated for risks of credit divided by credit at risk (gross)

Coverage of credit at risk by balance sheet impairments and real/financial guarantees –total BS impairments accumulated for risks of credit plus real and financial guarantees divided by credit at risk (gross).

Coverage of non-performing loans by balance sheet impairments – total BS impairments accumulated for risks of credit divided by NPL

Credit at risk – definition broader than the non performing loans which includes also restructured loans whose changes from initial terms have resulted in the bank being in a higher risk position than previously; restructured loans which have resulted in the bank becoming in a lower risk position (e.g. reinforced collateral) are not included in credit at risk.

Credit at risk (net) – credit at risk deducted from BS impairments accumulated for risks of credit.

Customer spread – Difference between the spread on the loans to customers book over 3 months Euribor and the spread on the customers' deposits portfolio over 3 months Euribor.

Debt securities - debt securities issued by the Bank and placed with customers.

Dividends from equity instruments - dividends received from investments in financial assets held for trading and available for sale.

Equity accounted earnings - results appropriated by the Group related to the consolidation of entities where, despite having a significant influence, the Group does not control the financial and operational policies.

Loan book spread - average spread on the loan portfolio over 3 months Euribor.

Loan to value ratio (LTV) – Mortgage amount divided by the appraised value of property.

Loan to Deposits ratio (LTD) – Total loans to customers net of accumulated BS impairments for risks of credit to total customer deposits.

Net interest margin - net interest income for the period as a percentage of average interest earning assets.

Net operating revenues - net interest income, dividends from equity instruments, net commissions, net trading income, equity accounted earnings and other net operating income.

Net trading income - net gains/losses arising from trading and hedging activities, net gains/losses arising from available for sale financial assets, net gains/losses arising from financial assets held to maturity.

Non-performing loans – Overdue loans more than 90 days including the non-overdue remaining principal of loans, i.e. portion in arrears, plus non-overdue remaining principal.

Non-performing loans ratio (net) – Loans more than 90 days overdue and doubtful loans reclassified as overdue for provisioning purposes less BS impairments accumulated for credit risk divided by total loans (gross).

Non-performing loans coverage ratio – total BS impairments accumulated for credit risk divided by overdue and doubtful loans divided.

Glossary (2/2)

Loans more than 90 days overdue coverage - total BS impairments accumulated for risk of credit divided by total amount of loans overdue with instalments of capital and interest overdue more than 90 days.

Operating costs - staff costs, other administrative costs and depreciation.

Other impairment and provisions - other financial assets impairment, other assets impairment, in particular provision charges related to assets received as payment in kind not fully covered by collateral, goodwill impairment and other provisions.

Other net income – net commissions, net trading income, other net operating income, dividends from equity instruments and equity accounted earnings.

Other net operating income - other operating income, other net income from non-banking activities and gains from the sale of subsidiaries and other assets.

Overdue loans - loans in arrears, not including the non-overdue remaining principal.

Overdue loans coverage ratio – total BS impairments accumulated for risks of credit divided by total amount of loans overdue with instalments of capital and interest overdue.

Overdue and doubtful loans - loans overdue by more than 90 days and the doubtful loans reclassified as overdue loans for provisioning purposes.

Return on equity (ROE) – Net income (including the minority interests) divided by the average attributable equity, deducted from preference shares and other capital instruments.

Return on average assets (ROA) – Net income (including minority interests) divided by the average total assets.

Securities portfolio - financial assets held for trading, financial assets available for sale, assets with repurchase agreement, financial assets held to maturity and other financial assets held for trading at fair value through net income.

Spread on term deposits portfolio – average spread on terms deposits portfolio over 3 months Euribor.

Total customer funds - amounts due to customers (including debt securities), assets under management and capitalisation products.

Total operating income – net interest income, dividends from equity instruments, net fees and commissions income, trading income, equity accounted earnings and other operating income.

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