Banco Comercial Portugues

Capital/Financing Update • Apr 5, 2023

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 8 March 2022.

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 19.43% of RWA, or 22.43% with the addition of the current Combined Buffer Requirement ("CBR"). The intermediate requirement applicable from 1 January 2022 is 16.18% of RWA, or 19.18% including the current CBR.

The MREL requirement as a percentage of LRE is 5.91% (unchanged from previous communication), applicable from 1 January 2022.

As of 31 December 2022, BPI already exceeded the final MREL requirements, both as a percentage of RWA and as a percentage of LRE.

MREL requirements (including CBR) vs. reported ratios as of December 2022

	MREL requirements		MREL ratios
	Current	2024	31 Dec. 2022
% RWA	19.18%	22.43%	25.6%
% LRE	5.91%	5.91%	11.1%

Porto, 5 April 2023

Banco BPI, S.A.