Banco Comercial Portugues

Capital/Financing Update • Mar 8, 2022

BANCO BPI, S.A.

Registered office: Av. Boavista, 1117, Porto Registered at Commercial Registry of Porto under registration number PTIRNMJ 501 214 534 and tax identification number 501 214 534 Share capital: € 1 293 063 324.98

ANNOUNCEMENT

Banco BPI S.A. ("BPI") hereby reports that it was notified by the Bank of Portugal of its Minimum Requirements for Own Funds and Eligible Liabilities ("MREL"), as determined by the Single Resolution Board ("SRB"), which replaces the previous applicable requirements that were publicly disclosed on 5 February 2021.

The requirements are based on the Bank Recovery and Resolution Directive ("BRRD2"), and are intended to ensure that banks have a sufficient amount of own funds and eligible debt to be able to absorb losses in distressed scenarios and recapitalise internally, thus ensuring the continuity of their operations.

The MREL requirements are expressed as a percentage of both Risk-Weighted Assets ("RWA") and the Leverage Ratio Exposure ("LRE").

As set out in the notification, BPI, on a sub-consolidated basis, must comply by 1 January 2024 with a minimum amount of own funds and eligible liabilities of 19.40% of RWA, or 22.40% with the addition of the current Combined Buffer Requirement ("CBR"). The intermediate requirement to be complied with by 1 January 2022 is 16.18% of RWA, or 19.18% including the current CBR.

BPI must comply with a MREL requirement as percentage of LRE of 5.91% by 1 January 2022.

As of 31 December 2021, BPI exceeded the MREL requirements, both as a percentage of RWA and as a percentage of LRE.

	MREL requirements		MREL ratios
	from 1 Jan. 2022	from 1 Jan. 2024	31 Dec. 2021	Proforma1
% RWA	19.18%	22.40%	23.7%	24.3%
% LRE	5.91%	5.91%	10.3%	10.6%

MREL requirements (including CBR) vs. reported ratios as of December 2021

Porto, 8 March 2022

Banco BPI, S.A.

¹⁾ Considering the early redemption of 300 M.€ of subordinated debt and a new equivalent issue of 425 M.€ to take place in March 2022, as disclosed on 28 February 2022.