Banco Comercial Portugues

Earnings Release • Feb 1, 2016

EARNINGS PRESENTATION FULL YEAR 2015

FEBRUARY 2016

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

Figures for 2015 not audited

Agenda

• Highlights
• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International Operations
• Conclusions and targets for 2018

Profitability and efficiency Back to profits	Net profit of €235.3 million in 2015, compared to a loss of €226.6 million in 2014. • Core net income up 37.1%, from €647.4 million in 2014 to €887.9 million in 2015, reflecting a • 16.6% increase in net interest income and lower operating costs (-3.7%, including a 7.0% reduction in Portugal). Operating efficiency improved further, as cost to core income decreased 55.5%. to
Business performance Healthy balance sheet	• Customer deposits up by 3.5% to €51.5 billion as at December 31, 2015, with total Customers funds standing at €66.2 billion (€64.7 billion as at December 31, 2014). • Commercial gap improved further, with net loans as a percentage of on-balance sheet Customer funds now standing at 97%. As a percentage of deposits (BoP criteria), net loans improved to 102% (108% as at December 31, 2014).
Asset quality Lower delinquency and reinforced coverage	Provision charges still sizable, but trending downwards: €833.0 million in 2015 (€1,107.0 • million in 2014). • Decrease of the non-performing loans ratio to 10.9% at year-end 2015 from 11.5% at year-end 2014. Coverage of non-performing loans reinforced to 57.3% from 52.9% at the end of 2014.
Capital and liquidity Reinforced to European benchmark levels	• Common equity tier 1 ratio** at 13.3% according to phased-in criteria, compared to 11.7% as at December 31, 2014. This figure stood at 10.2% on a fully implemented basis. • Capital figures do not include the impact of the agreement to merge Millennium Angola and Banco Privado Atlântico, S.A., estimated at +0.4 percentage points on a phased-in basis. • ECB funding usage down to €5.3 billion (€1.5 billion of which TLTRO) from €6.6 billion as at December 31, 2014.

* Assuming 2014 shareholding in Bank Millennium to be the same as in 2015 (65.5% in 1Q, 50.1% from 2Q). | ** Includes the impact of the new DTAs regime for capital purposes according with IAS.

Retail	Companies and Corporate	Best benchmark scores
▪ Mobile banking users increased twofold, resulting from the Mobile App's new functions and from a new mobile website for smart phones and tablets ▪ Optimisation and renovation of the branch network ▪ More than 900,000 Customers now hold "package solutions"	New funding lines totalling  €700 million following agreements with EIB and EIF  "PME Crescimento 2015" funding in excess of €160 million  Support to 267 investment projects under the "Portugal 2020" programme	"Basef Banca", December scores Increased penetration as 1st  bank (+1.7pp from Dec.2014): largest private sector bank  Main bank among upper and upper-middle classes: market share up by 2.6pp from 2014  Leader in Customer service (among 5 largest banks)
▪ Increased capture of new Customers (+15%) ▪ "Best banking website" for the th 5 year in a row – a "PC Guia" magazine award	 New digital solutions for companies  "Professionals' Choice 2016" – a "Escolha dos Consumidores" award  Investment banking income up 25% to €34 million in 2015	Reinforced leadership as  chosen bank among private sector banks (market share up by 1.5pp) Data E (Companies), 2015 Main bank of Portuguese  companies
		 Leader in innovation, efficiency and proximity to Customers

• Highlights
• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International Operations
• Conclusions and targets for 2018

2015 earnings: profitability affirmed…

(million euros)	2014	2015	YoY	Impact on earnings
Net interest income	1,116.2	1,301.6	16.6%	+185.4
Net fees and commissions	680.9	692.9	1.8%	+12.0
Other operating income	495.4	509.1	2.8%	+13.7
Banking income	2,292.5	2,503.5	9.2%	+211.1
Staff costs	-635.6	-616.1	-3.1%	+19.5
Other administrative costs and depreciation	-514.0	-490.5	-4.6%	+23.5
Operating costs	-1,149.6	-1,106.5	-3.7%	+43.1
Operating net income (before impairment and provisions)	1,142.9	1,397.0	22.2%	+254.2
Loans impairment (net of recoveries)	-1,107.0	-833.0	-24.7%	+274.0
Other impairment and provisions	-209.3	-161.3	-22.9%	+48.0
Net income before income tax	-173.4	402.7	--	+576.1
Income taxes	97.7	-56.4	--	-154.1
Non-controlling interests	-110.1	-125.6	14.1%	-15.6
Net income from discontinued or to be discontinued operations	-40.8	14.6	--	+55.5
Net income	-226.6	235.3	--	+462.0

… after 4 years of losses

Core net income improves, reflecting strong performance in Portugal

(Million euros)

* Core net income = net interest income + net fees and commission income – operating costs.

Net interest income increases reflecting improvement in Portugal

Increased commissions, despite demanding regulatory environment

(Million euros)

Fees and commissions				Portugal
Consolidated				+3.5%
				448,2 433,2
	2014	2015	YoY
Banking fees and commissions	545.1	562.5	+3.2%
Cards and transfers	193.6	172.4	-11.0%	2014 2015
Loans and guarantees	159.6	178.6	+11.9%	International Operations
Bancassurance	72.7	75.3	+3.5%
Customer account related	76.6	84.4	+10.1%
Other fees and commissions	42.5	51.8	+21.8%	-1.2% 247,7 244,7
Market related fees and commissions	135.7	130.4	-4.0%
Securities operations	97.0	91.3	-5.9%
Asset management	38.7	39.1	+0.9%
Total fees and commissions	680.9	692.9	+1.8%	2014 2015

Other income: gains on the sale of sovereign debt were partially compensated by additional contributions

Cost reduction proceeds in Portugal

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

• Millennium bcp is the most efficient bank in Portugal and is among the most efficient in the Eurozone, with a cost to core income* of 55% in 2015.
• Millennium bcp is also the most improved bank in Portugal in terms of cost to core income* in recent years: 55pp down from 2013

Impairment slowing down in Portugal…

(Million euros)

… with lower delinquency and increased coverage

Diversified and collateralised portfolio

• Loans to companies accounted for 47% of the loan portfolio at year-end 2015, including 10% to construction and real-estate sectors
• 92% of the loan portfolio is collateralised

• Mortgage accounted for 45% of the loan portfolio, with low delinquency levels and an average LTV of 67%

• Highlights

• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International Operations
• Conclusions and targets for 2018

Deposits increase, with individuals in Portugal and international operations standing out

Credit increases in international operations

On a comparable basis: excludes Romania, following the discontinuation process. * Excludes public sector and credit recovery areas.

Continued improvement of the liquidity position, current ratios exceed future requirements

* Based on Customer deposits and net loans to Customers. ** According to the current version of Notice 16/2004 of the Bank of Portugal.

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

• Highlights
• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International Operations
• Conclusions and targets for 2018

Capital strengthened to European benchmarks, supported by profitability and specific measures

Pension fund

(Million euros)

	Dec 14	Jun 15	Dec 15
Pension liabilities	3,133	3,136	3,136
Pension fund	3,095	3,070	3,158
Liabilities' coverage	110%	109%	111%
Fund's profitability	8.1%	0.5%	-0.8%
Actuarial differences	(477)	(38)	(111)

Assumptions

	Dec 14	Dec 15
Discount rate		2.50%
	0.75%	until 2017
Salary growth rate	1.00% after 2017
	0.00% until 2017
Pensions growth rate	0.50% after 2017
Projected rate of return of fund assets	2.50%
Mortality Tables
Men	TV 73/77 -2 years
Women	Tv 88/90 -3 years

• Pension liabilities coverage at 111%
• Negative actuarial differences in 2015 resulting from the fund's profitability being below assumptions

• Assumptions unchanged in 2015

• Highlights

• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International Operations
• Conclusions and targets for 2018

Portugal: deleveraging effort improves liquidity position

On a comparable basis: excludes Millennium bcp Gestão de Activos (following the process of discontinuation).

Net income improves significantly

Improvement trend on core income and operating costs in Portugal proceeds

• Core income increases to €1,160 million in 2015
• Operating costs down to €642 million in the same period
• Continuation of the core net income** expansion trend begun 2 years ago to €518 million in 2015

* Core net income = net interest income + net fees and commission income – operating costs.

** Excludes non-recurring costs of €119 million in 2013.

Increase on net interest income in Portugal reflects lower cost of deposits, in spite of the impact of lower loan volumes

Breakdown of net interest income growth
(Million euros)
		4Q15 vs.	2015 vs.
		3Q15	2014
Effect of cost of time deposits		+10.1	+182.7
Performing loans volume effect		-2.8	-87.1
NPL effect (non recurring)		+21.1	+43.5
CoCos effect		--	+114.7
Other (inc. sovereign debt)		-15.2	-69.5
	Total	+13.2	+184.3

• Net interest income increased versus 3Q15, driven by:
• Consistent reduction of the cost of time deposits
• Non-recurring interest recovery from NPLs
• These effects were partially offset by the continued reduction in loan volumes
• Year-on-year increase of net interest income from commercial business, as the impact of the continued decline of the cost of term deposits, the reduction of NPL and the early repayment of CoCos more than compensated for the unfavourable impact of lower loan volumes and the lower contribution from the sovereign debt portfolio

Continued effort to reduce the cost of deposits

• Continued reduction of the spread of the portfolio of term deposits, down to 123bp in 2015 from 173bp in 2014; December's front book priced at an average spread of -54bp, substantially below current back book's
• The slight decrease in the average spread on loans to companies was compensated by an improvement in mortgage loans, resulting in an improved spread on the total loan book
• The combination of an improved spread on loans and on deposits has resulted in a significant increase to the Customer spread, which stood at 208bp in 2015 (165 bp in 2014)

Increased commissions, benefiting from early repayment of State-guarantees

(Million euros)

2014 2015 YoY Banking fees and commissions 368.0 389.8 +5.9% Cards and transfers 103.6 99.4 -4.0% Loans and guarantees 119.0 118.3 -0.6% Bancassurance 72.7 75.3 +3.6% Customer account related 76.5 84.2 +10.2% State guarantee -22.7 0.0 -- Other fees and commissions 18.8 12.5 -33.8% Market related fees and commissions 65.2 58.4 -10.4% Securities operations 57.7 52.1 -9.6% Asset management 7.5 6.2 -16.5% Total fees and commissions 433.2 448.2 +3.5%

The implementation of the plan proceeded, on target with strategic goals

Reinforced coverage of delinquent loans

Foreclosed assets sold above book value, confirming appropriate coverage

• Highlights
• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International Operations
• Conclusions and targets for 2018

Stable net income in international operations

(Million euros)
	2014	2015	Δ % local currency	Δ % euros	ROE
International operations*
Poland	155.7	130.7	-16.0%	-15.8%	9.1%
Mozambique	84.1	84.2	+0.2%	-4.8%	19.6%
Angola	50.4	75.7	+50.1%	+47.7%	22.8%
Net income	290.2	290.6	+0.2%	-1.5%
Other and non-controlling interests	-88.7	-114.1
Total contribution int. operations	201.5	176.5		-12.4%
On a comparable basis**	183.3	176.5		-3.7%

Poland: growing Customer funds and loans to Customers

FX effect excluded. €/Zloty constant in December 2015: Income Statement 4.18171667; Balance Sheet 4.2639.

Net income penalised by additional contributions in the 4th quarter of 2015

(Million euros)

FX effect excluded. €/Zloty constant in December 2015: Income Statement 4.18171667; Balance Sheet 4.2639.

Income reduction determined by additional contributions in the 4th quarter 2015

(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 (2.6M€ in 2014 and 12.8M€ in 2015) is presented in net trading income. FX effect excluded. €/Zloty constant in December 2015: Income Statement 4.18171667; Balance Sheet 4.2639.

Stable credit quality, with high levels of coverage

(Million euros)

FX effect excluded. €/Zloty constant in December 2015: Income Statement 4.18171667; Balance Sheet 4.2639.

Mozambique: strong volume growth

Stable net income

FX effect excluded. €/Metical constant as at December 2015: Income Statement 43.74125000; Balance Sheet 51.1600.

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

(Million euros)

FX effect excluded. €/Metical constant as at December 2015: Income Statement 43.74125000; Balance Sheet 51.1600.

Credit quality and coverage

Angola: strong volumes growth

756 894 88 94 7 8 852 996 Dec 14 Dec 15 651 884 579 ⁸⁰⁷ 1.230 1.692 Dec 14 Dec 15 +37.5% +16.9% (Million euros) Customer funds Loans to customers (gross) +35.8% +39.4% +6.3% + 16.8% + 18.2% Ondemand deposits Term deposits Companies Consumer and other Mortage

FX effect excluded. €/Kwanza constant as at December 2015: Income Statement 132.42416667; Balance Sheet 147.4100.

Strong growth in net interest income, partially compensated by increased operating costs

Credit quality and coverage

• Highlights
• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International Operations
• Conclusions and targets for 2018

Progress on 2012 strategic plan metrics

					Actual		Strategic plan
Phases	Priorities			2014	2015		2015
Demanding economic environment 2012-2013	Stronger balance sheet		CET1* (phased-in) (fully implemented)	11.7% 7.8%	13.3% 10.2%	…	>10%	
Recovery of profitability in Creating Portugal growth and profitability conditions		LtD**	102%	97%	…	<110%	
			C/I	52%	44%	…	≈50%	
2014-2015	Continued development of business in Poland, Mozambique and Angola		Operating costs	€690M	€642M	…	≈€660M	
		Cost of risk (bp)	194	150	…	≈100	
Sustained growth 2016-2017	Sustained net income growth, greater balance between domestic and international operations		ROE	-6.5%	5.3%	…	≈7%	

Significant transformation of Millennium bcp over the last years, since the 2008 crisis

		Past	2015
Capital	Capital ratio	4.2% Core Tier 1 BoP, Mar 08	13.3% CET1 phased-in
	Loans to Deposits	175% Mar 09	101%
Liquidity	Gap comercial billion euros	32.5 Mar 09	0.4
	ECB funding usage billion euros	15.4 Sep 11	5.3
	Cost-income	76.5% 6M13	44.2% Cost-core income: 55.5%
Costs	Operating costs in Portugal million euros	1,031 2008	642
	Branches in Portugal	920 Set 08	671
	Cost of risk in Portugal	243 bp 9M14	175 bp
Asset quality	Credit at risk in Portugal billon euros	7.4 Jun 12	5.6
	Net income million euros	-1,219 2012	+235
Profitability	ROE	-35.4% 2012	5.3%

Adapting Millennium bcp to a changing financial system

A new framework for the financial system

The road to 2018

Retail			Companies	Credit recovery	Processes
Redefining the distribution model	Re-launching the affluent segment	Strengthening leadership in small businesses	Adjusting business model to support growth	Optimising credit recovery areas	Re-designing and simplifying operating model
			Digital evolution of Millennium bcp

	2014	2015	Target 2018
Branches	695	671	< 570
Customers with digital access [percentage of total Customers]	24%	26%	> 35%
Digital transactions [percentage of total transactions]	34%	40%	> 50%
Customer satisfaction [ranking in Marktest's Customer satisfaction index]	#2	#2	#1
Credit at risk in Portugal [billion euros]	6.2	5.6	≤ 4.5
New Prestige Customers [x1,000, net of Customers lost]	0	6	> 10 Average p.a. 2016-2018
Cost per Customer [Retail, euros]	189	171	< 160

Road to 2018: financial targets

	2014	2015	Target 2018
Phased-in CET1 ratio	11.7%	13.3%
Fully implemented CET1 ratio	7.8%	10.2%	≥11%
Loans to Deposits	108%	102%	<100%
Cost-core income	64.0%	55.4%	<50%
Cost-income	51.7%	44.2%	<43%
Cost of risk	194 bp	150 bp	<75 pb
ROE*	-6.5%	5.3%	>11%

Appendix

Sovereign debt portfolio

• Total sovereign debt at €7.3 billion, of which €1.8 billion maturing up to one year
• Portuguese and Mozambican sovereign debt decreased, whereas exposure to Polish and Angolan sovereign debt have increased from end-2014

Sovereign debt portfolio

(Million euros, as at December 2015)

	Portugal	Poland	Mozambique	Angola	Other	Total
Trading book*	180	96	0	2	38	316
≤ 1 year	0	14	0	2	0	16
> 1 year and ≤ 2 years	0	34	0	0	38	73
> 2 year and ≤ 5 years	175	36	0	0	0	211
> 5 year and ≤ 10 years	4	12	0	0	0	16
> 10 years	0	0	0	0	0	0
Banking book**	3,668	2,216	472	577	53	6,987
≤ 1 year	885	447	265	137	0	1,734
> 1 year and ≤ 2 years	201	571	66	175	0	1,013
> 2 year and ≤ 5 years	145	1,034	141	200	51	1,570
> 5 year and ≤ 10 years	2,436	146	0	66	2	2,650
> 10 years	1	18	0	0	0	19
Total	3,848	2,312	472	579	91	7,303
≤ 1 year	885	461	265	139	0	1,750
> 1 year and ≤ 2 years	201	605	66	175	38	1,086
> 2 year and ≤ 5 years	321	1,070	141	200	51	1,782
> 5 year and ≤ 10 years	2,440	158	0	66	2	2,666
> 10 years	1	18	0	0	0	19

* Includes financial assets held for trading at fair valu through net income (€152 million).

** Includes AFS portfolio (€6,868 million) and HTM portfolio (€118 million).

Financial Statements

Consolidated Balance Sheet*

(Million euros)

	31 December 2015	31 December 2014
Assets			Liabilities
Cash and deposits at central banks	1,840.3	1,707.4
Loans and advances to credit institutions
Repayable on demand	776.4	795.8
Other loans and advances	921.6	1,456.0
Loans and advances to customers	51,970.2	53,685.6
Financial assets held for trading	1,188.8	1,674.2
Financial assets available for sale	10,779.0	8,263.2
Assets with repurchase agreement	-	36.4
Hedging derivatives	73.1	75.3
Financial assets held to maturity	494.9	2,311.2
Investments in associated companies	315.7	323.5
Non current assets held for sale	1,765.4	1,622.0	Equity
Investment property	146.3	176.5
Property and equipment	670.9	755.5
Goodwill and intangible assets	210.9	252.8
Current tax assets	43.6	41.9
Deferred tax assets	2,561.5	2,398.6
Other assets	974.2	784.9
	74,884.9	76,360.9

	31 December 2015	31 December 2014
Liabilities
Amounts owed to credit institutions	8,591.0	10,966.2
Amounts owed to customers	51,538.6	49,816.7
Debt securities	4,768.3	5,709.6
Financial liabilities held for trading	723.2	953.0
Hedging derivatives	541.2	352.5
Provisions for liabilities and charges	284.8	460.3
Subordinated debt	1,645.4	2,025.7
Current income tax liabilities	22.3	31.8
Deferred income tax liabilities	14.8	6.7
Other liabilities	1,074.7	1,051.6
Total Liabilities	69,204.3	71,374.0
Equity
Share capital	4,094.2	3,706.7
Treasury stock	(1.2)	(13.5)
Share premium	16.5	-
Preference shares	59.9	171.2
Other capital instruments	2.9	9.9
Fair value reserves	23.3	106.9
Reserves and retained earnings	192.2	458.1
Net income for the year attrib. to Shareholders	235.3	(226.6)
Total equity attrib. to Shareholders of the Bank	4,623.2	4,212.5 -
Non-controlling interests	1,057.4	774.4 -
Total Equity	5,680.6	4,986.9
	74,884.9	76,360.9

* Following the first application of IFRIC 21 in June 2015, whose impacts at Group level are related with the recognition of the contributions from the banking sector, for the deposits guarantee fund and for the resolution fund, it was also necessary to restate the consolidated financial statements for 2014.

Consolidated Income Statement* Per quarter

(Million euros)			Per quarter
	4Q 14	1Q 15	2Q 15	3Q 15	4Q 15
Net interest income	325.2	328.4	299.6	328.7	344.9
Dividends from equity instruments	0.1	2.0	3.8	0.1	6.1
Net fees and commission income	174.7	169.9	180.7	169.7	172.5
Other operating income	-10.1	-18.0	-23.9	-13.7	-66.2
Net trading income	85.0	200.1	308.1	45.8	41.4
Equity accounted earnings	7.7	6.1	14.6	4.5	-1.6
Banking income	582.5	688.4	782.9	535.1	497.2
Staff costs	157.6	153.3	155.7	152.1	155.0
Other administrative costs	117.3	106.7	106.4	102.3	108.5
Depreciation	17.2	16.7	16.6	15.7	17.7
Operating costs	292.0	276.6	278.6	270.2	281.2
Operating net income bef. imp.	290.5	411.8	504.3	264.9	216.0
Loans impairment (net of recoveries)	232.5	205.6	269.4	153.0	205.0
Other impairm. and provisions	66.3	70.1	21.7	25.5	43.9
Net income before income tax	-8.3	136.1	213.2	86.3	-32.9
Income tax	73.9	36.3	18.1	26.4	-24.5
Non-controlling interests	28.2	30.1	38.7	36.1	20.7
Net income (before disc. oper.)	-110.4	69.6	156.3	23.8	-29.1
Net income arising from discont. operations	-6.8	0.8	14.0	0.0	-0.1
Net income	-117.1	70.4	170.3	23.8	-29.2

* Following the first application of IFRIC 21 in June 2015, whose impacts at Group level are related with the recognition of the contributions from the banking sector, for the deposits guarantee fund and for the resolution fund, it was also necessary to restate the consolidated financial statements for 2014.

Consolidated Income Statement (Portugal* and International Operations)

For the 9-month periods ended 31th December, 2014 and 2015

(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
	D ec 14	D ec 15	Δ %	D ec 14	D ec 15	Δ %	D ec 14	D ec 15	Δ %	D ec 14	D ec 15	Δ %	D ec 14	D ec 15	Δ %	D ec 14	D ec 15	Δ %	D ec 14	D ec 15	Δ %
Interest income	2,653	2,316	-12.7%	1,699	1,376	-19.0%	953	940	-1.4%	616	553	-10.2%	207	221	7.0%	124	160	28.7%	6	6	-6.3%
Interest expense	1,536	1,015	-34.0%	1,172	665	-43.3%	364	350	-3.9%	269	227	-15.8%	66	80	21.6%	36	49	35.3%	-8	-6	16.7%
N et interest inco me	1,116	1,302	16.6%	527	711	35.0%	589	590	0.2%	347	326	-5.9%	141	141	0.1%	8 8	111	26.0%	14	12	-12.1%
Dividends from equity instruments	6	12	>100%	2	9	>100%	4	3	-20.2%	0	1	23.0%	0	0	-20.3%	3	2	-26.4%	0	0	<-100%
Intermediatio n margin	1,122	1,314	17.1%	529	720	36.1%	593	593	0.1%	347	327	-5.8%	141	141	0.1%	9 1	113	24.2%	14	12	-12.1%
Net fees and commission income	681	693	1.8%	433	448	3.5%	248	245	-1.2%	146	143	-2.3%	45	45	-0.3%	32	33	2.7%	25	24	-1.7%
Other operating income	11	-122	<-100%	14	-86	<-100%	-2	-36	<-100%	-14	-51	<-100%	14	16	12.3%	-1	0	>100%	-1	-1	-0.8%
B asic inco me	1,814	1,885	3.9%	976	1,083	10.9%	838	802	-4.3%	479	419	-12.6%	200	202	0.9%	122	146	20.0%	3 8	3 6	-5.5%
Net trading income	442	595	34.7%	344	443	29.0%	99	152	54.6%	48	52	8.2%	23	40	72.3%	26	56	>100%	2	4	>100%
Equity accounted earnings	36	24	-34.6%	36	24	-33.8%	0	0	<-100%	0	0	<-100%	0	0	--	0	0	--	0	0	>100%
B anking inco me	2,292	2,504	9.2%	1,356	1,550	14.3%	937	954	1.8%	527	470	-10.7%	223	241	8.3%	148	202	37.0%	3 9	4 0	2.0%
Staff costs	636	616	-3.1%	411	377	-8.3%	225	239	6.4%	130	131	0.2%	47	48	3.0%	32	42	31.1%	16	18	16.9%
Other administrative costs	448	424	-5.5%	247	235	-4.9%	202	189	-6.2%	120	100	-16.9%	42	47	12.4%	34	37	7.3%	6	6	3.1%
Depreciation	66	67	1.6%	32	30	-6.5%	33	36	9.7%	13	12	-8.6%	11	11	6.0%	9	13	42.2%	0	0	-10.2%
Operating co sts	1,150	1,107	-3.7%	690	642	-7.0%	459	465	1.1%	263	242	-8.0%	99	106	7.3%	75	91	21.6%	22	25	12.7%
Operating net inco me bef. imp.	1,143	1,397	22.2%	666	908	36.4%	477	489	2.6%	263	228	-13.4%	124	135	9.1%	7 2	111	52.9%	17	15	-11.6%
Loans impairment (net of recoveries)	1,107	833	-24.7%	1,021	730	-28.5%	86	103	19.7%	65	61	-6.3%	12	25	>100%	10	15	55.4%	0	2	>100%
Other impairm. and provisions	209	161	-22.9%	208	153	-26.5%	2	9	>100%	-1	3	>100%	2	4	>100%	1	1	>100%	0	0	-78.9%
N et inco me befo re inco me tax	-173	403	>100%	-563	2 5	>100%	389	378	-3.1%	200	164	-17.8%	110	106	-3.6%	6 2	9 4	52.0%	17	13	-26.3%
Income tax	-98	56	>100%	-176	-18	89.5%	78	75	-4.4%	45	34	-24.6%	20	20	0.5%	11	19	71.9%	2	2	-16.9%
Non-controlling interests	110	126	14.1%	0	-1	<-100%	110	126	15.1%	0	0	--	1	1	8.5%	0	0	--	109	125	15.2%
N et inco me (befo re disc. o per.)	-186		221 >100%	-387	4 4	>100%	201	177	-12.4%	155	131	-15.8%	8 8	8 4	-4.8%	5 1	7 6	47.7%	-93	-114	-22.1%
Net income arising from discont. operations -41		15	>100%
N et inco me	-227	235	>100%

* Following the first application of IFRIC 21 in June 2015, whose impacts at Group level are related with the recognition of the contributions from the banking sector, for the deposits guarantee fund and for the resolution fund, it was also necessary to restate the consolidated financial statements for 2014.

Consolidated Pro Forma Balance Sheet with Banco Millennium Angola equity-consolidated

(Million euros)	31 December		31 December
	2015	Liabilities	2015
Assets
Cash and deposits at central banks	1,335	Amounts owed to credit institutions	8,375
Loans and advances to credit institutions		Amounts owed to customers	49,847
Repayable on demand	734	Debt securities	4,768
Other loans and advances	877	Financial liabilities held for trading	723
Loans and advances to customers	51,022	Hedging derivatives	541
Financial assets held for trading	1,338	Provisions for liabilities and charges	281
Financial assets available for sale	10,250	Subordinated debt	1,645
Assets with repurchase agreement	0	Current income tax liabilities	22
Hedging derivatives	73	Deferred income tax liabilities	0
Financial assets held to maturity	427	Other liabilities	992
Investments in associated companies	484	Total Liabilities	67,196
Non current assets held for sale	1,754
Investment property	146	Equity
Property and equipment	511	Share capital	4,094
Goodwill and intangible assets	207	Treasury stock	-1
Current tax assets	44	Share premium	16
Deferred tax assets	2,562	Preference shares	60
Other assets	944	Other capital instruments	3
	72,709	Fair value reserves	23
		Reserves and retained earnings	192
		Net income for the year attrib. to Shareholders	235
		Total equity attrib. to Shareholders of the Bank	4,623

Non-controlling interests	890
Total Equity	5,513
	72,709

Consolidated Pro Forma Income Statement with Banco Millennium Angola equity-consolidated

(Million	euros)
		Dec 15
	Net interest income	1,191
	Dividends from equity instruments	10
	Net fees and commission income	660
	Other operating income	-122
	Net trading income	539
	Equity accounted earnings	61
	Banking income	2,339
	Staff costs	574
	Other administrative costs	387
	Depreciation	54
	Operating costs	1,015
	Operating net income bef. imp.	1,324
	Loans impairment (net of recoveries)	818
	Other impairm. and provisions	160
	Net income before income tax	346
	Income tax	38
	Non-controlling interests	88
	Net income (before disc. oper.)	221
	Net income arising from discont. operations	15
	Net income	235