Banco Comercial Portugues

Earnings Release • Sep 30, 2013

• This document is not an offer of securities for sale in the United States. Canada. Australia. Japan or any other jurisdiction. Securities may not be offered or sold in the United States unless they are registered pursuant to the US Securities Act of 1933 or are exempt from such registration. Any public offering of securities in the United States. Canada. Australia or Japan would be made by means of a prospectus that will contain detailed information about the company and management. including financial statements
• 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
• The figures for Greek operation was restated in 2012 following the process of discontinuing this operation and aggregated into a single income statement item defined as "Income arising from discontinued operations.
• First nine months figures for 2012 and 2013 not audited

Agenda

• Main Highlights
• Group
• Liquidity
• Capital
• Profitability
• Portugal
• International Operations
• Conclusions

Highlights

Sale of Piraeus Bank stake already in the 4Q13, formal approval by DG Comp of the restructuring plan, comfortable liquidity situation, strengthening the capital position and signs of operational recovery in Portugal in line with the strategic plan

Piraeus Bank sale	Sale of Piraeus Bank stake, with an effect at core tier I of 40 bp
Liquidity	Commercial gap improvement: reduction by 7.4 billion euros from September 2012, with net loans to deposits ratio (BoP) at 124% and net loans to balance sheet customer funds standing at 111%
comfortable situation	Customer deposits up 5.4%* year-on-year, with deposit growth of +5.2% in Portugal
	Loans to customers evolution reflects lower credit demand, but with increasing weight in the new financing to companies in Portugal
Capital reinforced and above requirements	Core tier I ratio reaches 12.7% according to BoP, above 11.9% in September 2012. Core tier I ratio of 10.2% according to EBA (11.9% adjusted for 30 September 2013 buffer values)
	Consolidated net income at -597 million euros, comparing with -796 million euros in the first nine months of 2012, in line with the strategic plan and with the macroeconomic developments
Profitability	Contribution of international operations (excluding Greece) to consolidated net income of 128 million euros, an increase of 13.5% compared to the same period of 2012
with signs of operational recovery	Net interest income maintains the quarterly recovery trend in Portugal
	Reduction in operating costs by 14.8%** in Portugal year-on-year
	New entries in NPL in Portugal decreases 57.7% compared to 9M2012, allowing an improvement in the provision level, confirming the target of a sustained reduction in the cost of risk * On a comparable basis: excluding Greece, following the sale of the operation

** Excludes specific items: restructuring costs (+2.7M€ in the 9M12 and +11.2M€ in the 9M13) and the impact of the legislative change related to mortality allowance (-64.0 M€ € in the 9M12 and -7.5 M€ in the 9M13)

Highlights 9M13

On a comparable basis: excluding Greece, following the sale of the operation

Core tier I (%) 11.9% 12.7%

Highlights 9M13

Agenda

• Main Highlights
• Group
• Liquidity
• Capital
• Profitability
• Portugal
• International Operations
• Conclusions

Focus on the increase in customer funds…

… and credit evolution in line with the macroeconomic environment

Significant improvement in liquidity position, expressed by the reduction of commercial gap and loans to deposits ratio

• Commercial gap improves by 7.4 billion euros over the last year
• Loans to deposit ratio (BoP criteria) of 124% and 111% if including all balance sheet customer funds
• Net usage of ECB of 12.7 billion euros
• 21.0 billion euros of eligible assets (net of haircuts) available for refinancing with ECB, with a buffer of 8.3 billion euros

Lower refinancing needs on the short, medium and long term

(Billion euros)

Refinancing needs of medium-long term debt

Significant improvement of the funding structure

• Reduction of funding needs, benefitting from the deleveraging process which proceeds at a good pace
• Deposits are the main source of funding
• Lower short-term refinancing needs than in the past

* Includes repurchase of own debt amounting to 0.5 billion euros

** Includes repayment of 1.6 billion euros related to liability management transactions

Agenda

• Main Highlights
• Group
• Liquidity
• Capital
• Profitability
• Portugal
• International Operations
• Conclusions

Core tier I ratio complying comfortably with all regulatory requirements

Consolidated

		13

Agenda

• Main Highlights
• Group
• Liquidity
• Capital
• Profitability
• Portugal
• International Operations
• Conclusions

Results in line with the plan reflecting the current macroeconomic scenario

		Consolidated
(million euros)	9M12	9M13	Δ
Net interest income	758.5	625.9	-132.6
Of which: costs related with hybrids instruments (CoCo's)	-67.4	-201.1	-133.7
Net fees and commissions	498.4	503.6	5.1
Of which: State guarantee costs	-51.1	-47.8	3.3
Other operating income	351.0	152.5	-198.5
Of which: valuation of the warrant of Piraeus Bank (Greece)	0.0	79.1	79.1
Of which: debt repurchase	184.3	0.0	-184.3
Of which: sale of loans portfolio	-10.5	-54.1	-43.6
Banking income	1,607.9	1,281.9	-325.9
Staff costs	514.4	515.0	0.6
Of which: mortality allowance	-64.0	-7.5	56.5
Of which: reestruturing costs	2.7	11.2	8.5
Other admin. costs and depreciation	441.0	396.8	-44.2
Operating costs	955.4	911.8	-43.6
Impairment and provisions	876.9	998.3	121.4
Of which: impairment on Piraeus Bank (Greece) participation	0.0	80.0	80.0
Of which: provisions for other risks and liabilities	0.0	80.0	80.0
Income tax and non-controlling interests	25.8	-72.2	-98.0
Net income from discontinued operations (Greece)	-546.1	-41.4	504.7
Net income	-796.3	-597.3	199.0

Net income affected by relevant factors with impact on results

(Million euros)

Net interest income reduction as a result of CoCo's cost, despite the improvement on cost of deposits that compensates the volume effect

Total fees and commissions increase driven by international operations

(Million euros)
Fees and commissions				Portugal
Consolidated
	9M12	9M13	YoY
Banking fees and commissions	458.5	450.4	-1.8%
Cards and transfers	132.3	134.9	2.0%
Loans and guarantees	128.5	114.8	-10.6%
Bancassurance	53.0	54.7	3.2%
Current account related	48.5	55.4	14.2%
Other fees and commissions	96.2	90.5	-5.9%
Market related fees and commissions	91.0	101.0	10.9%
Securities operations	60.5	66.3	9.5%
Asset management	30.5	34.7	13.7%
Total fees and comm. excluding State guarantee	549.5	551.4	0.3%
State guarantee	-51.1	-47.8	-6.5%
Total fees and commissions	498.4	503.6	1.0%

Lower contribution of net trading income

(Million euros)

Net trading income

Consolidated

Portugal

	9M12	9M13	Δ
Net trading income excluding specific items:	40.5	44.1	3.6
Specific items:
Repurchase of own debt	184.3	0.0	-184.3
Portuguese public debt (trading portfolio)	42.7	0.2	-42.5
Sale of credit	-10.5	-54.1	-43.6
Piraeus Bank Warrants	0.0	79.1	79.1
	257.0	69.3	-187.7

International operations

Significant reduction of costs in Portugal

* Excludes specific items: restructuring costs (+2.7M€ in the 9M12 and +11.2M€ in the 9M13) and the impact of the legislative change related to mortality allowance (-64.0 M€ € in the 9M12 and -7.5 M€ in the 9M13)

Provisioning in line with cost of risk target for the end of the year

(Million euros)

Credit quality improves and provisioning allows coverage increase

(Million euros)

Credit quality

Consolidated Loan impairment (balance sheet)

Coverage ratio	Sep12	Sep 13
NPL	45%	50%
Credit at risk	42%	46%

• Non-performing loans ratio remained at 11.5% with a decrease compared with June 13 (11.7%). Reduction on NPL allowed increasing the coverage to 50%
• Credit at risk ratio reduced to 12.3% and with an improvement compared to June 13 (12.6%). Coverage (by BS impairments and real and financial guarantees) above 100%
• Net new entries in non-performing loans in Portugal, decreased 57.7% over the same period

9M12 9M13

Diversified and collateralized credit portfolio

• Loans to companies represents 50% of total loan portfolio, with a diversified distribution by the several sectors
• 93% of the loan portfolio is collateralized
• Mortgage loans represent 44% of total loan portfolio, with a low delinquency level and an average LTV of 67%

Agenda

• Main Highlights
• Group
• Liquidity
• Capital
• Profitability
• Portugal
• International Operations
• Conclusions

Portugal: deleveraging effort with an increase in deposits and a reduction of loans

(Million euros)

Increasing weight of the Bank in the new financing to companies in Portugal, despite the lower demand for credit

Credit lines to support business Market share in loans to SME EIB Mutual Guarantee Millennium BIM Credit line of €200Mio to support Portuguese SME Credit line of €100Mio to support the treasury and the investment Credit line of \$100Mio to support investment projects in Mozambique

Market share in mutual guarantee credit

Source: Mutual Guarantee Societies

15% 14% 14% 14% 18% 21% 22% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Aug 13 Millennium bcp's new production Source: Bank of Portugal Expressive growth on share in new credit

Credit line to SME

Leader in the number of new
operations in September 13

Market share

st 1	BCP	21%
nd 2	Bank 2	19%
rd 3	Bank 3	16%
th 4	Bank 4	13%
th 5	Bank 5	11%

Source: Mutual Guarantee Societies

Net income affected by the cost of the CoCo's and lower in net trading income despite the significant cost reduction…

-363.1 -684.0 Net income

9M12 9M13

• Net income substantially penalised by the decrease of banking income, despite the strong decrease in operating costs
• Banking income affected by the cost of the CoCo"s and lower net trading income
• Significant operating cost savings as a result of the implementation of the restructuring plan at the end 2012

Banking income Operating Costs*

*Excludes specific items: restructuring costs: (+2,7 M€ in the 9M12 and +11,2 M€ in the 9M13) and the impact of the legislative change related to mortality allowance (-64,0 M€ in the 9M12 and -7,5 M€ in the 9M13)

… but maintaining the positive trend in net interest income…

Net interest income

(Million euros)

+37.2%			3Q13 vs.2Q13
	105.5	Customer funds margin	+14.1
		Past due loans and recovery effect	+20.2
		Volume effect on loans and others	-5.7
		Total	+28.6

• Positive quarterly performance due to the reduction of the cost of deposits, past due loan and recoveries effect, despite the negative volume effect on credit and the stability of market rates
• Lower market rates, cost of hybrid instruments (CoCo"s) and liability management (2011) continue to constraint the net interest income

… through strong efforts to reduce the cost of deposits

Evolution of term deposits spreads in Portugal

Credit portfolio spread

• Continuous effort to reduce the cost of deposits, new production with rates substantially lower when compared with the previous year
• Perfectly in line with the strategic plan target of term deposit's spread reduction
• Spread of the companies" credit portfolio remains at a high level

Lower credit commissions, despite the improvement of market related commissions

(Million euros)

	9M12	9M13	YoY
Banking fees and commissions	343.4	321.3	-6.4%
Cards and transfers	70.1	68.9	-1.8%
Loans and guarantees	105.3	91.4	-13.2%
Bancassurance	53.0	54.7	3.2%
Current account related	48.5	55.4	14.2%
Other fees and commissions	66.5	50.9	-23.4%
Market related fees and commissions	47.9	53.4	11.4%
Securities operations	33.9	38.4	13.4%
Asset management	14.1	15.0	6.7%
Total fees and comm. excluding State guarantee	391.4	374.7	-4.3%
State guarantee	-51.1	-47.8	-6.5%
Total fees and commissions	340.3	326.9	-3.9%

Positive trend in operating costs in Portugal, comparing favourably with domestic peers

* Excludes specific items: restructuring costs (+2.7M€ in the 9M12 and +11.2M€ in the 9M13) and the impact of the legislative change related to mortality allowance (-64.0 M€ € in the 9M12 and -7.5 M€ in the 9M13)

Credit quality shows the first signals of recovery with reduction on NPL and increase coverage

(Million euros)

Credit quality

Credit ratio	Sep12	Sep13
NPL	13.4%	13.9%
Credit at risk	13.9%	14.1%

6,965 6,532

Sep 12 Sep 13

Non-performing loans (NPL)

Loan impairment (balance sheet)

Reduction of foreclosed assets, with an increase of properties sold and coverage stable

Agenda

• Main Highlights
• Group
• Liquidity
• Capital
• Profitability
• Portugal
• International Operations
• Conclusions

Net income in international operations

(Million euros)

	9M12	9M13	Δ % local currency	Δ % euros	ROE (9M13)
* International operations	112.9	128.1		13.5%
Poland	82.0	93.0	13.4%	12.7%	10.5%
Mozambique	60.9	62.1	1.9%	-7.7%	24.6%
Angola	23.8	27.5	15.9%	12.6%	16.0%
Other and non-controlling interests	-53.8	-54.5
			€183 M

Note: For the 9M12, the net income of subsidiaries presented reflect the same exchange rate considered for the 9M13 in order to allow the comparison without the exchange effect * Excludes Greece

Poland: growth in customer funds and loans to customers

(Million euros)

Customer funds Loans to customers (gross)

Net income growth improved by the increase of banking income and strict cost control

(Million euros)

Net income

Net income grows by 13.4%, with ROE at 10.5%

• Increase in banking income (+3.2%), despite the decrease in the reference interest rates that reached historic minimums (WIBOR3M fell from 5.0% in 9M12 to 3.2% in 9M13)
• Strict cost control(-2.3%)
• Positive macroeconomic outlook by the IMF for real GDP : +1.3% in 2013 and +2.4% in 2014

Banking income Operating costs

Progressive recovery of net interest income, strong growth in commissions and strict cost control

* 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(9,6M€ in 9M12 and 11,7M€ in 9M13) is presented in net trading income

Excluded FX effect. €/PLN rates used: Income Statement 4.22283889; Balance Sheet 4.2288

Improvement on credit quality with increase in coverage

(Million euros)

Credit ratio	Sep12	Sep13
NPL	3.1%	2.8%

Credit quality Loan impairment (balance sheet)

* Impairment charges / average net loans for the period (in bps, annualized)

Excluded FX effect. €/PLN rates used: Income Statement 4.22283889; Balance Sheet 4.2288

Mozambique: strong volumes growth

(Million euros)

Customer funds Loans to customers (gross)

Companies

Net income benefited by the increase of banking income

(Million euros)

Net income

• Net income increases 1.9%, with ROE of 24.6%
• Consistent quarterly increasing in net interest income (benefiting from the volume effect, despite lower reference interest rates) and increase in commissions
• Operating costs increase 7.3% (+3 branches compared with September 12)
• Positive macroeconomic outlook by the IMF for real GDP: +7.0% in 2013 and +8.5% in 2014

Banking income Operating costs

Consistent quarterly increasing in net interest income and increase in commissions

(Million euros)

Improvement of credit quality and high coverage

(Million euros)

Credit ratio		Sep 12	Sep 13
NPL		4.9%	3.4%
	45
		41

Credit quality Loan impairment (balance sheet)

Non-performing loans (NPL)

Sep 12 Sep 13

Angola: volumes growth

(Million euros)

Customer funds Loans to customers (gross)

Excluded FX effect. €/Kwanza rates used : Income Statement 126.78722222; Balance Sheet 131.71

Net income increases driven by higher commissions, despite the expansion plan

(Million euros)

Net income

Banking income Operating costs

• Net income increases 15.9% with ROE at 16.0%
• Increase in banking income: driven by higher commissions and net interest income stable despite lower reference interest rate
• Focus on network growth (+13 branches and +110 employees compared with September 12)
• Positive macroeconomic outlook by the IMF for real GDP: +5.6% in 2013 and +6.3% in 2014

Strong fees and commisions growth and controlled operating costs despite the expansion plan

(Million euros)

Excluded FX effect. €/Kwanza rates used : Income Statement 126.78722222; Balance Sheet 131.71

Better credit quality ratio and coverage

(Million euros)

Credit ratio	Sep 12	Sep 13
NPL	5.1%	4.5%

25 26

Credit quality Loan impairment (balance sheet)

Non-performing loans (NPL)

Sep 12 Sep 13

Agenda

• Main Highlights
• Group
• Liquidity
• Capital
• Profitability
• Portugal
• International Operations
• Conclusions

Progress on strategic plan metrics

PHASES	Priorities		9M12	9M13		2015	Initiatives
Demanding economic environment	Stronger balance sheet	CT1 (BoP)	11.9%	12.7%	…	~12%	Maintaining solid capital ratios by reducing RWA, despite the negative results
(2012-13)		* LTD	121%	111%	…	<110%	Strengthening liquidity position with the deleveraging process and increase in deposits
Creating growth and profitability conditions (2014-15)	Recovery of profitability in Portugal	C/I	63%	71%	…	<55%	Efficiency penalized by the increase in cost of CoCos and Trading Income, but with the first signs of recovery (61% in 3Q13)
		Oper. ** Costs	868M€	740M€	…	<700M€	Restructuring program initiated at the end of 2012 with savings already visible
	Continued development of business in Poland, Mozambique and Angola	Cost of risk (b.p.)	144	137	…	~100	Reduction in new entries in NPL and new recovery model in Portugal allow reduction in the level of provisioning
Sustained growth (2016-17)	Net income sustained growth, more balanced between domestic and international component	ROE	-30%	-28%	…	~10%	Disposal of Greece, increase in the contribution of international operations and the first signs of recovery in Portugal

Results aligned with the strategic plan to strengthen the balance sheet, preparing for recovery of profitability in Portugal and growth in Poland, Mozambique and Angola

Appendixes

Awards of the first nove months of 2013

Evolution of public debt portfolio

(Million euros)

Public debt portfolio

		Sep 12	YoY
Portugal		4,788	6,762	41%
T-bills		1,529	2,877	88%
Bonds		3,259	3,885	19%
Poland		1,613	2,079	29%
Mozambique		242	358	48%
Angola		360	244	-32%
Romania		99	64	-36%
Greece		41	0	-100%
Others		311	333	7%
	Total	7,453	9,839	32%

Total maturity of public debt

• Total public debt of 9.8 billions euros, of which 4.8 billions euros with maturity under 2 years
• Sovereign Mozambican debt increases 48%, Portuguese debt 41% and Polish 29%, whereas Greek public debt exposure (41 million euros in September 2012) was null in September 2013

Detail of public debt portfolio

(Million euros)

	Portugal	Poland	Mozambique	Angola	Romania	Ireland	Greece Others	Total
Trading book	162	114					72	348
< 1 year		1						1
> 1 year and <2 years	1	27						29
> 2 year and <3 years	13	42						55
> 3 years	147	44					72	264
AFS book	4,725	1,964	358	244	58		5	7,354
< 1 year	1,115	702	167	71	25			2,079
> 1 year and <2 years	2,018	115	160	83	33			2,409
> 2 year and <3 years	706	505	2	60			5	1,278
> 3 years	886	642	29	30				1,587
HTM book	1,875				5	206	50	2,136
< 1 year					5	206		212
> 1 year and <2 years	74							74
> 2 year and <3 years	1,344							1,344
> 3 years	457						50	507
Total	6,762	2,079	358	244	64	206	127	9,839
< 1 year	1,115	703	167	71	30	206		2,292
> 1 year and <2 years	2,093	143	160	83	33			2,512
> 2 year and <3 years	2,064	547	2	60			5	2,677
> 3 years	1,490	686	29	30			122	2,358

Romania: strong improvement in banking income with the maintenance of a cost containment policy and volumes growth

(Million euros) 25.2 22.2 9M 12 9M 13 Banking Income Operating costs -12.2% 17.3 21.0 9M 12 9M 13 +21.4%

• Net income improvement due to the increase in banking income and the reduction in operating costs
• 3Q13 is the first quarter ever which the Bank shows positive operating net income before impairments
• Banking income growth driven by higher net interest income of 25.8% and commissions of 11.9%
• Continuous effort to simplify the organization with the decrease in the number of employees
• Increase of both deposits and credit volumes, above the market average, maintaining a conservative risk management policy

Financial statements

Consolidated Balance Sheet and Income Statement

	30 september 2013	31 December 2012	30 september 2012
		(Thousands of Euros)
Assets
Cash and deposits at central banks Loans and advances to credit institutions	2,044,901	3,580,546	2,535,908
Repayable on demand	1,003,555	829,684	749,492
Other loans and advances	1,555,469	1,887,389	2,505,275
Loans and advances to customers	57,106,719	62,618,235	64,960,446
Financial assets held for trading	1,527,243	1,690,926	1,670,516
Financial assets available for sale	10,485,700	9,223,411	7,391,544
Assets with repurchase agreement	121,645	4,288	34,239
Hedging derivatives	136,935	186,032	232,048
Financial assets held to maturity	3,165,649	3,568,966	3,659,790
Investments in associated companies	545,072	516,980	475,004
Non current assets held for sale	1,265,560	1,284,126	1,126,481
Investment property	697,403	554,233	559,092
Property and equipment	529,133	626,398	605,831
Goodwill and intangible assets	250,068	259,054	248,971
Current tax assets	39,784	34,037	26,300
Deferred tax assets	1,892,356	1,755,411	1,614,215
Other assets	754,213	1,124,323	878,867
	83,121,405	89,744,039	89,274,019
Liabilities
Amounts owed to credit institutions	15,383,561	15,265,760	16,093,927
Amounts owed to customers	46,854,035	49,389,866	47,271,348
Debt securities	9,633,736	13,548,263	14,267,987
Financial liabilities held for trading	1,033,970	1,393,194	1,360,622
Other financial liabilities at fair value
through profit and loss	849,326	329,267	221,221
Hedging derivatives	274,593	301,315	302,651
Provisions for liabilities and charges	406,041	253,328	277,532
Subordinated debt	4,408,290	4,298,773	4,327,995
Current income tax liabilities	6,507	15,588	2,366
Deferred income tax liabilities	4,457	2,868	3,118
Other liabilities	890,686	945,629	1,312,924
Total Liabilities	79,745,202	85,743,851	85,441,691
Equity
Share capital	3,500,000	3,500,000	3,000,000
Treasury stock	(14,977)	(14,212)	(13,965)
Share premium	-	71,722	71,722
Preference shares	171,175	171,175	171,175
Other capital instruments	9,853	9,853	9,853
Fair value reserves	13,296	2,668	(87,235)
Reserves and retained earnings	(366,895)	850,021	871,749
Net income for the period attributable to Shareholders	(597,326)	(1,219,053)	(796,306)
Total Equity attributable to Shareholders of the Bank	2,715,126	3,372,174	3,226,993
Non-controlling interests	661,077	628,014	605,335
Total Equity	3,376,203	4,000,188	3,832,328
	83,121,405	89,744,039	89,274,019

	30 september 2013	30 september 2012
	(Thousands of Euros)
Interest and similar income	2,169,740	2,641,485
Interest expense and similar charges	(1,543,837)	(1,883,011)
Net interest income	625,903	758,474
Dividends from equity instruments	1,656	3,814
Net fees and commission income Net gains / losses arising from trading and	503,583	498,449
hedging activities Net gains / losses arising from available for	113,916	346,505
sale financial assets Net gains / (losses) arising from financial	40,924	(5,869)
assets held to maturity	(278)	(22)
Other operating income	(44,083)	(35,846)
	1,241,621	1,565,505
Other net income from non banking activity	15,457	15,456
Total operating income	1,257,078	1,580,961
Staff costs	515,034	514,392
Other administrative costs	346,367	384,244
Depreciation	50,402	56,760
Operating costs	911,803	955,396
Operating net income before provisions and impairments	345,275	625,565
Loans impairment	(622,678)	(693,119)
Other financial assets impairment	(97,361)	(29,642)
Other assets impairment	(108,866)	(121,745)
Goodwill impairment	(7,722)	-
Other provisions	(161,663)	(32,412)
Operating net income	(653,015)	(251,353)
Share of profit of associates under the equity method	46,440	42,921
Gains / (losses) from the sale of subsidiaries and other assets	(21,572)	(15,986)
Net (loss) / income before income tax Income tax	(628,147)	(224,418)
Current	(57,055)	(52,791)
Deferred	196,610	82,609
Net (loss) / income after income tax from continuing operations	(488,592)	(194,600)
Income arising from discontinued operations	(41,394)	(546,080)
Net income after income tax	(529,986)	(740,680)
Attributable to: Shareholders of the Bank	(597,326)	(796,306)
Non-controlling interests	67,340	55,626
Net income for the period	(529,986)	(740,680)
Earnings per share (in euros)
Basic Diluted	(0.04) (0.04)	(0.10) (0.10)

Consolidated income statement

Quarterly evolution

(Million euros)

			Year-to-date
	3Q 12	4Q 12	1Q 13	2Q 13	3Q 13	Sep 12	Sep 13	Δ % 13 / 12
Net interest income	176.4	252.2	183.0	205.1	237.8	758.5	625.9	-17.5%
Dividends from equity instruments	0.2	0.0	0.0	1.5	0.2	3.8	1.7	-56.6%
Net fees and commission income	163.6	167.7	163.1	175.5	165.0	498.4	503.6	1.0%
Other operating income	-10.2	-14.4	-8.3	-16.5	-25.4	-36.4	-50.2	-38.0%
Net trading income	33.2	102.5	74.7	-17.9	97.8	340.6	154.6	-54.6%
Equity accounted earnings	12.7	12.7	14.1	16.5	15.8	42.9	46.4	8.2%
Banking income	375.9	520.7	426.6	364.2	491.1	1,607.9	1,281.9	-20.3%
Staff costs	189.4	252.4	170.0	174.2	170.8	514.4	515.0	0.1%
Other administrative costs	121.2	135.4	117.6	115.9	112.8	384.2	346.4	-9.9%
Depreciation	18.4	14.0	17.4	17.1	15.9	56.8	50.4	-11.2%
Operating costs	329.1	401.8	305.0	307.2	299.6	955.4	911.8	-4.6%
Operating net income bef. imp.	46.9	118.9	121.6	56.9	191.6	652.5	370.1	-43.3%
Loans impairment (net of recoveries)	226.6	288.7	188.4	288.1	146.2	693.1	622.7	-10.2%
Other impairm. and provisions	76.8	166.5	50.8	183.8	141.0	183.8	375.6	>100%
Net income before income tax	-256.5	-336.3	-117.5	-415.0	-95.6	-224.4	-628.1	<-100%
Income tax	-50.0	-101.0	-28.0	-102.1	-9.5	-29.8	-139.6	<-100%
Non-controlling interests	16.1	26.2	20.1	23.9	23.4	55.6	67.3	21.1%
Net income (before disc. oper.)	-222.7	-261.5	-109.7	-336.8	-109.5	-250.2	-555.9	<-100%
Net income arising from discont. operations	-29.4	-161.3	-42.3	0.5	0.3	-546.1	-41.4	92.4%
Net income	-252.0	-422.7	-152.0	-336.3	-109.1	-796.3	-597.3	25.0%

Consolidated income statement (Portugal and International operations) For the 9 months period ended 30th of September, 2012 and 2013

(Million euros)

													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.)	M illennium A ngo la			Other int. o peratio ns
	Sep 12	Sep 13	Δ %	Sep 12	Sep 13	Δ %	Sep 12	Sep 13	Δ %	Sep 12	Sep 13	Δ %	Sep 12	Sep 13	Δ %	Sep 12	Sep 13	Δ %	Sep 12	Sep 13	Δ %
Interest income	2,641	2,170	-17.9%	1,822	1,453	-20.2%	819	716	-12.5%	553	480	-13.2%	158	135	-14.2%	72	67	-6.9%	37	34	-6.8%
Interest expense	1,883	1,544	-18.0%	1,458	1,207	-17.2%	425	337	-20.9%	343	273	-20.6%	53	43	-19.7%	21	17	-16.2%	8	4	-54.7%
N et interest inco me	758	626	-17.5%	365	246	-32.6%	394	380	-3.5%	210	207	-1.1%	105	9 3	-11.4%	5 1	5 0	-3.2%	2 8	3 0	7.2%
Dividends from equity instruments	4	2	-56.6%	3	1	-56.6%	1	0	-56.4%	1	0	-59.4%	0	0	5.4%	0	0	--	0	0	100.0%
Intermediatio n margin	762	628	-17.7%	368	247	-32.7%	395	380	-3.6%	211	208	-1.3%	105	9 3	-11.4%	5 1	5 0	-3.2%	2 8	3 0	7.2%
Net fees and commission income	498	504	1.0%	340	327	-3.9%	158	177	11.7%	99	105	6.1%	28	31	12.3%	17	22	30.2%	15	19	26.7%
Other operating income	-36	-50	-38.0%	-42	-63	-50.0%	6	13	>100%	-2	-3	-20.6%	9	15	79.9%	0	0	>100%	-1	0	74.8%
B asic inco me	1,224	1,081	-11.7%	666	511	-23.3%	559	570	2.0%	307	310	0.9%	141	139	-1.2%	6 8	7 2	5.5%	4 3	4 9	15.4%
Net trading income	341	155	-54.6%	257	69	-73.0%	84	85	2.0%	34	39	16.0%	22	16	-26.8%	23	25	9.0%	4	5	3.7%
Equity accounted earnings	43	46	8.2%	41	46	12.1%	2	0	-82.2%	1	0	-65.5%	1	0	-100.0%	0	0	--	0	0	--
B anking inco me	1,608		1,282 -20.3%	964	626	-35.0%	644	656	1.8%	342	349	2.2%	164	156	-5.2%	9 1	9 7	6.4%	4 7	5 4	14.4%
Staff costs	514	515	0.1%	337	341	1.4%	178	174	-2.3%	100	97	-3.0%	35	33	-4.1%	22	23	4.8%	21	20	-3.2%
Other administrative costs	384	346	-9.9%	222	191	-14.0%	162	155	-4.1%	87	84	-3.2%	31	30	-3.1%	26	26	1.8%	19	15	-18.1%
Depreciation	57	50	-11.2%	31	26	-15.7%	26	24	-5.7%	10	10	-0.4%	7	7	5.2%	7	6	-20.6%	2	2	-15.5%
Operating co sts	955	912	-4.6%	590	559	-5.3%	365	353	-3.3%	197	192	-3.0%	72	70	-2.8%	54	54	0.1%	42	37	-10.5%
Operating net inco me bef. imp.	652		370 -43.3%	374	6 8	-81.9%	279	302	8.5%	144	158	9.3%	9 2	8 6	-7.1%	3 7	4 3	15.6%	5	16	>100%
Loans impairment (net of recoveries)	693	623	-10.2%	628	564	-10.2%	65	59	-9.4%	44	39	-10.6%	9	9	-4.9%	7	7	-4.0%	5	4	-15.0%
Other impairm. and provisions	184	376	>100%	186	373	>100%	-2	2	>100%	-3	1	>100%	1	1	88.1%	0	-1	<-100%	0	0	>100%
N et inco me befo re inco me tax	-224		-628 <-100%	-440	-869	-97.6%	215	241	11.8%	103	117	13.2%	8 2	7 6	-8.0%	3 0	3 6	22.7%	0	12	>100%
Income tax	-30	-140	<-100%	-69	-185	<-100%	39	46	17.6%	21	24	15.5%	14	13	-8.8%	5	9	71.8%	-1	0	92.5%
Non-controlling interests	56	67	21.1%	-8	0	>100%	64	67	5.5%	0	0	--	1	1	-25.6%	0	0	--	63	66	5.9%
N et inco me (befo re disc. o per.)	-250		-556 <-100%	-363	-684	-88.4%	113	128	13.5%	8 3	9 3	12.7%	6 7	6 2	-7.7%	2 4	2 8	12.6%	-61	-55	11.1%
Net income arising from discont. operations	-546	-41	92.4%
N et inco me	-796	-597	25.0%

Investor Relations Division Rui Coimbra, Head of Investor Relations

Investor Relations Reporting and Ratings João Godinho Duarte, CFA Luís Morais Paula Dantas Henriques Lina Fernandes

Tl: +351 21 1131 084 Tl: + 351 21 1131 337

Email: Investors@millenniumbcp.pt

Banco Comercial Português, S.A., a public company (sociedade aberta) having its registered office at Praça D. João I, 28, Oporto, registered at the Commercial Registry of Oporto, with the single commercial and tax identification number 501 525 882 and the share capital of EUR 3,500,000,000