CTT-Correios de Portugal

Earnings Release • Jul 29, 2016

CTT - Correios de Portugal, S.A. Public Company Avenida D. João II, 13 1999-001 LISBON Lisbon commercial registry and fiscal no. 500 077 568 Share Capital EUR 75,000,000.00

Announcement - Lisbon, 29 July 2016

Material information

CTT - Correios de Portugal, S.A. ("CTT") hereby informs that the main indicators of Banco CTT, S.A. ("Banco CTT") as at 30 June 2016 are as follows:

Number of branches opened - 66; Number of accounts opened - 20,200; Customer deposits - €56.0m.

Since the initial opening to the general public on 18 March 2016, Banco CTT has already opened 100 branches to the public as at 22 July 2016. It is expected that by the end of 2016 circa 200 branches are opened to the public.

The 1^st half of 2016 marked the start of the launch and development period of the Banco CTT branch network (ramp-up), where the focus is on the capture of clients and deposits, as well as on the continuing investment in infrastructure and product portfolio development. During this period, Banco CTT recorded a net profit of - $\epsilon$ 9.5m and an investment of $\epsilon$ 7.8m in tangible fixed and intangible assets (Capex).

Equally, as at 30 June 2016, Banco CTT's assets totalled €106.5m, as detailed in the attached Balance Sheet.

This information to the market and the general public is made under the terms and for the purposes of article 248 of the Portuguese Securities Code and other legislation in force.

This information is also available on CTT's Investor Relations website at: http://www.ctt.pt/ctt-e-investidores/relacoes-cominvestidores/comunicados.html?com.dotmarketing.htmlpage.language=1#panel1-1.

CTT – Correios de Portugal, S.A.

CTT Market Relations Representative André Gorjão Costa

CTT Investor Relations Department Peter Tsvetkov

Contacts: Email: investors@ctt.pt Fax: +351 210 471 996 Phone: +351 210 471 857

CTT - Correios de Portugal, S.A. Public Company Avenida D. João II, 13
1999-001 LISBON Lisbon commercial registry and fiscal no. 500 077 568 Share Capital EUR 75,000,000.00

CTT - Correios de Portugal, S.A. Public Company Avenida D. João II, 13 1999-001 LISBON Lisbon commercial registry and fiscal no. 500 077 568 Share Capital EUR 75,000,000.00

Attachment

Banco CTT Balance Sheet as at 30 June 2016

	30.06.2016
	Amount before provisions, impairments and amortisations	Provisions. impairments and amortisations	Net amount	31.12.2015
Assets					Liabilities
Cash and deposits at Central Banks	5,328,412	$\overline{\phantom{a}}$	5.328.412	30.397	Customer deposits and other deposits
Loans and advances to credit institutions	17,588,417	$\overline{\phantom{a}}$	17,588,417	1,458,350	Other liabilities
Financial assets available for sale	3,016,582	$\overline{\phantom{a}}$	3,016,582	130,144	Total Liabilites
Deposits in credit institutions	29.709.033	$\sim$	29,709,033	17,902,472
Loans to customers	1,523	9	1,514	u,
Investments held to maturity	28,358,768	$\overline{\phantom{a}}$	28,358,768		Equity
Tangible fixed assets	77,303	10,206	67.097	60,642	Share Capital
Intangible assets	17,655,322	660,753	16,994,569	9,716,701	Fair value reserves
Other assets	5,391,117	$\sim$	5,391,117	1,816,304	Reserves and retained earnings
					Net profit for the period
					Total Equity
Total Assets	107,126,477	670,968	106,455,509	31,115,010	Total Liabilites and Equity

(Amounts in euros)

52,422

2,983,813

3,036,235

$-540$

$-5,920,685$

28,078,775

$\sim$

30.06.2016 31.12.2015

60,000,000 34,000,000

106,455,509 31,115,010

5,981

$-5,920,685$

$-9,491,640$

44,593,656

55,966,552

5.895.301

61,861,853

www.ctt.pt