Banco Comercial Portugues

Earnings Release • May 8, 2017

Disclaimer

• 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
• First 3 months figures for 2016 and 2017 not audited

• The business figures presented exclude the former Banco Millennium Angola

• Highlights

• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International operations
• Conclusions

Summary

• Net profit of €50.1 million (€46.7 million in 1Q16), benefiting from the continued expansion of core net income, 20% up from 1Q16 to €254.8 million in 1Q17 1
• Continued NPE and NPL reduction in Portugal, with total coverage, including guarantees, increasing to 100% 2
• Capital strengthened in early February, allowing for the full repayment of CoCos and bringing the fully implemented CET1 ratio to 11.2% (13.0% on a phased-in basis) 3
• 4

5

• Reversal of the decreasing credit trend, particularly visible in the non-NPE portfolio, up by €247 million in 1Q17
• Strong business performance in Portugal, with Customer acquisition standing out

1 Highlights: profitability

• Core net income increases to €254.8 million in 1Q17, with a noteworthy expansion in net interest income
• Significant expansion in core net income from €43.2 million in 1Q13
• One of the most efficient banks in the Euro-zone, with cost to core income of 48% (45% cost to income)
• Net earnings in excess of €50 million in 1Q17
• Substantial improvement from €152.0 million losses in 1Q13

2 Highlights: asset quality

• at March 31, 2017, showing a strong pace of reduction from 2013: €1.4 billion per year, on average
• NPE reduction in 1Q17 in excess of €200 million, more than 20% of the annual reduction target to <€7.5 billion at year-end 2017
• NPE total* coverage at 100%
• NPL>90 days down to €4.8 billion as at March 31, 2017, with a significant reduction in net new entries to €21 million in 1Q17

3 Highlights: capital

• Capital strengthened in early February, allowing for the full repayment of CoCos and bringing the fully implemented CET1 ratio to >11%
• CET1 ratios reinforced to 11.2% on a fully implemented basis and to 13.0% under phased-in principles
• Positive market reaction to rights issue, with still attractive multiples:

	31 Dec 2016	Current	Average ES + IT banks
Price/Book Value	0.2x	0.6x	0.9x
Price/Core net income	3x	3x	7x

4 Highlights: credit

• Non-NPE portfolio up by €247 million from end-2016
• Effort to reduce NPEs results in total portfolio increasing at a lower pace: +€25 million vs December 31, 2016
• Strong performance of credit extended to mining and manufacturing (+6% vs 0% for the Portuguese banking system as a whole) and to restaurants and hotels (+10% vs +4% for the Portuguese banking system), more than compensating for the reduction in the non-core portfolio (exposure to construction / real estate activities down by 17%)

5 Highlights: business in Portugal

Institutional

• Highlights
• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International operations
• Conclusions

Profit of €50.1 million in 1Q17, with a significant improvement of core net income

(million euros)	1Q16	1Q17	YoY	Impact on earnings
Core net income (net int income+commissions–oper. costs)	213.2	254.8	+19.5%	+41.6
Other operating income	31.8	40.9	+28.5%	+9.1
Operating net income (bef. impairment and provisions)	245.1	295.8	+20.7%	+50.7
Impairment and provisions	-176.0	-203.2	+15.5%	-27.2
Net income before income tax	69.1	92.5	+34.0%	+23.5
Income taxes, non-controlling interests and disc. operations	-22.4	-42.4	+89.5%	-20.0
Net income	46.7	50.1	+7.4%	+3.4

Core net income increases in all geographies

Net interest income boosted by the continued reduction in the cost of deposits and by CoCo repayment…

… with the increase of commissions in international operations standing out

	Portugal
1Q16 1Q17 YoY
Banking fees and commissions 136.3 132.2 -3.0%
Cards and transfers 35.0 37.6 +7.3%
Loans and guarantees 38.9 38.7 -0.4%
Bancassurance 20.2 19.9 -1.5% International operations
Customer account related 22.6 23.2 +2.8%
Other fees and commissions 19.6 12.9 -34.4%
Market related fees and commissions 27.7 28.6 +3.3%
Securities operations 19.1 18.6 -2.7% Asset management 8.6 10.0 +16.4%
Total fees and commissions 163.9 160.8 -1.9%

Increased other income

Cost reduction continues…

… making Millennium bcp one of the most efficient banks in the Eurozone

Strengthening the balance sheet: cost of risk now trending towards normalisation, other provisions reinforced

Lower delinquency and increased coverage

• Highlights
• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International operations
• Conclusions

Stable deposits in Portugal, growing in international operations

Credit portfolio reflects support to economy in key business sectors, in spite of continuing deleveraging and NPE reduction

Growing new loans to individuals, new leasing business and factoring invoicing

Comfortable liquidity position

• Highlights
• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International operations
• Conclusions

Strengthened capital, in line with European peers

*Estimates including 1Q earnings. Mar 16 figures are pro forma including impact of merger in Angola.

Capital reinforced, high RWA density

Minimum phased-in capital requirements (SREP)
	Pillar 1	Conservation buffer	Counter cyclical buffer	Other syst. important institutions buffer	Pillar 2 requirements (P2R)	Total require -ments	Mar 17 Phased-in*
CET1	4.50%	1.25%	0.00%	0.00%	2.40%	8.15%	13.0%
Total capital	8.00%	1.25%	0.00%	0.00%	2.40%	11.65%	14.2%

Capital at comfortable levels, high leverage ratios

• Highlights
• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International operations
• Conclusions

Portugal: deleveraging improves liquidity position

Increased net income

Improvement trend on core income and operating costs continues in Portugal

Lower cost of deposits and NPLs more than compensate for the decreases of credit volumes and Euribor

• Increase in net interest income compared to 1st quarter 2016, reflecting the impact of the consistent reduction of the cost of term deposits, the repayment of CoCos, the reduction of NPLs and lower funding costs, more than compensating for the negative effect of the reduction of Euribor rates, of lower credit volumes and of fewer days (91 days in the 1st quarter of 2016, 90 days in the first quarter of 2017)
• Increased net interest income vs previous quarter, mainly attributable to the reduction of the cost of term deposits, to the repayment of CoCos and to lower funding costs, more than compensating for the impact of fewer days (92 days in 4Q16, 90 days in 1Q17), of lower credit volumes and of the reduction of Euribor rates

Continued effort to reduce the cost of deposits

Commissions affected by the booking of non-recurring operations in the 1st quarter of 2016

Continuous reduction of costs, in line with the new commercial approach

Reinforced coverage of NPL>90d

Lower NPEs with reinforced coverage

Foreclosed assets sold above book value; construction restructuring funds face challenges, but are almost fully provided

• Highlights
• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International operations
• Conclusions

Contribution from international operations

Contribution from international operations increases on a comparable basis

	1Q16	1Q17	Δ % local currency	Δ % euros	ROE
International operations
Poland	31.8	32.6	+2.4%	+4.2%	8.1%
Mozambique	13.5	20.7	+54.1%	+7.4%	26.3%
Angola*	14.0	7.6	-45.7%	-47.6%
Other	1.7	3.3	+89.7%	+94.5%
Net income	61.1	64.3	+5.2%	-3.9%
Non-controlling interests Poland and Mozambique	-20.4	-23.2
Exchange rate effect	4.1	--
Total contribution international operations	44.8	41.1		-8.3%
Same as above without FX effect	40.7	41.1		+0.9%

Contribution from international operations affected by FX impact

Poland: growing volumes

Net earnings increase

Increased net interest income and commissions

(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 (€4.1 million in 1Q17 and €3.2 million in 1Q16) is presented in net trading income. | FX effect excluded. €/Zloty constant at March 2017 levels: Income Statement 4.30775000; Balance Sheet 4.2398.

Stable credit quality, comfortable coverage

Mozambique: strong volume growth

763 930 209 ^{198 14} 13 985 1,141 Mar 16 Mar 17 +15.8% -5.2% +22.0% (Million euros) Customer funds Loans to Customers (gross) Companies Consumer and other Mortgage 661 774 518 660 1,180 1,434 Mar 16 Mar 17 Ondemand deposits Term deposits +17.0% +27.5% +21.6% -8.0%

Significant net income growth

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

Credit quality

• Highlights
• Group
• Profitability
• Liquidity
• Capital
• Portugal
• International operations
• Conclusions

			Consolidated
	1Q16	1Q17	2018
CT1 / CET1*	13.3% phased-in 10.1% fully implemented	13.0% phased-in 11.2% fully implemented	≈ 11%
Loans to Deposits	102%	97%	< 100%
Cost–Income	49.8%	44.6%	< 43%
Cost-Core Income**	53.3%	48.3%	< 50%
Cost of risk	119 bp	114 bp	< 75 bp
ROE	4.1%	4.1%	≈ 10% Based on a 11% fully implemented CET1

• Largest Portugal-based private sector bank, with a balanced shareholder structure and a sound balance sheet (phased-in CET1 ratio of 13.0%, loans to deposits of 97%)

2

1

• Unique position in Portuguese banking
• Profitable operation with a recurring capacity to generate operating results in excess of €1 billion per annum (€296 million in 1Q2017)
• Well-positioned in a rapidly changing landscape, following the completion of the restructuring plan successfully implemented over the last years: one of the most efficient banks in the Eurozone, with a cost to core income ratio of 48% (82% for the Eurozone) and a cost to income ratio of 45% (67% for the Euro-zone)
• 4

3

• Ready to support individuals and companies: credit portfolio in Portugal (non-NPE) increases by more than €240 million from year-end 2016

Appendix

Sovereign debt portfolio

Sovereign debt portfolio totalled €8.4 billion, €1.9 billion of which maturing in less than 1 year

The value of the Polish sovereign portfolio increased from 31 March 2016; exposure to Portuguese, Angolan and Mozambican sovereign debt decreased

Sovereign debt portfolio

	Portugal	Poland	Mozambique	Other	Total
Trading book*	157	96	0	37	290
≤ 1 year	0	9	0	36	45
> 1 year and ≤ 2 years	119	47	0	0	166
> 2 years and ≤ 5 years	37	25	0	0	62
> 5 years and ≤ 8 years	0	13	0	0	13
> 8 years and ≤ 10 years	1	0	0	0	1
> 10 years	0	2	0	0	3
Banking book**	4,084	3,649	302	53	8,088
≤ 1 year	589	1,023	208	1	1,821
> 1 year and ≤ 2 years	63	1,190	4	50	1,307
> 2 years and ≤ 5 years	1,064	1,381	91	0	2,536
> 5 years and ≤ 8 years	2,017	36	0	2	2,054
> 8 years and ≤ 10 years	349	19	0	0	369
> 10 years	2	0	0	0	2
Total	4,241	3,745	302	90	8,378
≤ 1 year	589	1,032	208	37	1,866
> 1 year and ≤ 2 years	181	1,237	4	50	1,473
> 2 years and ≤ 5 years	1,101	1,406	91	0	2,598
> 5 years and ≤ 8 years	2,018	49	0	2	2,068
> 8 years and ≤ 10 years	350	19	0	0	370
> 10 years	2	2	0	0	5

Diversified and collaterised portfolio

• Loans to companies accounted for 46% of the loan portfolio at March 31, 2017, including 8% to construction and real-estate sectors
• 84% of the loan portfolio is collateralised
• Mortgage accounted for 46% of the loan portfolio, with low delinquency levels and an average LTV of 66%
• Real estate accounts for 95% of total collateral value
• 80% of the real estate collateral is residential

Consolidated earnings

(million euros)	1Q16	1Q17	YoY	Impact on earnings
Net interest income	292.4	332.3	13.7%	+40.0
Net fees and commissions	163.9	160.8	-1.9%	-3.1
Other operating income	31.8	40.9	28.5%	+9.1
Banking income	488.1	534.0	9.4%	+45.9
Staff costs	-138.4	-136.9	-1.1%	+1.5
Other administrative costs and depreciation	-104.6	-101.4	-3.1%	+3.2
Operating costs	-243.1	-238.3	-2.0%	+4.8
Operating net income (before impairment and provisions)	245.1	295.8	20.7%	+50.7
Of which: core net income	213.2	254.8	19.5%	+41.6
Loans impairment (net of recoveries)	-160.7	-148.9	-7.3%	+11.8
Other impairment and provisions	-15.4	-54.3	253.9%	-39.0
Impairment and provisions	-176.0	-203.2	15.5%	-27.2
Net income before income tax	69.1	92.5	34.0%	+23.5
Income taxes	-15.0	-19.1	27.4%	-4.1
Non-controlling interests	-36.4	-23.3	-35.9%	+13.1
Net income from discontinued or to be discontinued operations	29.0	0.0	-100.0%	-29.0
Net income	46.7	50.1	7.4%	+3.4

Consolidated balance sheet

(Million euros)

	31 March	31 March		31 March	31 March
	2017	2016		2017	2016
Assets			Liabilities
Cash and deposits at central banks	1,684.4	2,210.4	Resources from credit institutions	9,284.1	10,813.9
Loans and advances to credit institutions			Resources from customers	50,137.5	51,014.4
Repayable on demand	258.3	739.8	Debt securities issued	2,962.7	4,463.2
Other loans and advances	1,337.8	1,300.5	Financial liabilities held for trading	509.7	847.6
Loans and advances to customers	48,533.7	51,183.0	Hedging derivatives	287.5	470.5
Financial assets held for trading	1,021.1	2,009.4	Provisions	341.6	273.2
Other financial assets held for trading			Subordinated debt	846.1	1,671.4
at fair value through profit or loss	147.3	150.8	Current tax liabilities	38.5	20.3
Financial assets available for sale	10,715.1	11,459.6	Deferred tax liabilities	2.3	16.0
Assets with repurchase agreement	30.3	50.8	Other liabilities	932.0	1,052.4
Hedging derivatives	73.6	128.7
Financial assets held to maturity	464.5	474.0	Total Liabilities	65,342.2	70,643.0
Investments in associated companies	611.2	331.5	Equity
Non current assets held for sale	2,225.4	1,783.6	Share capital	5,600.7	4,094.2
Investment property	12.6	141.9	Share premium	16.5	16.5
Other tangible assets	482.5	626.9	Preference shares	59.9	59.9
Goodwill and intangible assets	162.3	207.8	Other capital instruments	2.9	2.9
Current tax assets	17.7	43.3	Legal and statutory reserves	245.9	223.3
Deferred tax assets	3,193.2	2,571.4	Treasury shares	(0.7)	(0.9)
Other assets	1,106.1	881.7	Fair value reserves	(103.1)	15.5
	72,076.9	76,295.3	Reserves and retained earnings	(90.9)	140.7
			Net income for the period attrib. to Shareholders	50.1	46.7
			Total equity attrib. to Shareholders of the Bank	5,781.3	4,598.9

72,076.9 76,295.3

Non-controlling interests 953.4 1,053.4 Total Equity 6,734.7 5,652.3

		Quarterly
1Q 16	2Q 16	3Q 16	4Q 16	1Q 17
292.4	308.4	306.2	323.1	332.3
2.0	3.8	1.2	0.8	0.1
163.9	156.4	160.8	162.7	160.8
-12.4	-75.6	-8.3	-9.5	-15.2
28.3	154.5	29.7	27.9	36.4
13.9	23.8	22.9	19.9	19.6
488.1	571.3	512.5	524.8	534.0
138.4	135.2	136.7	-53.8	136.9
91.8	93.1	90.1	98.6	88.7
12.8	12.7	11.5	12.8	12.7
243.1	241.0	238.3	57.6	238.3
245.1	330.3	274.2	467.2	295.8
160.7	458.0	251.5	246.7	148.9
15.4	182.6	44.9	238.2	54.3
69.1	-310.3	-22.2	-17.8	92.5
15.0	-93.3	10.1	-313.7	19.1
36.4	43.1	21.5	20.8	23.3
17.7	-260.2	-53.8	275.0	50.1
29.0	16.2	0.0	0.0	0.0
46.7	-243.9	-53.8	275.0	50.1
	Net income arising from discont. operations

												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.)				Other int. o peratio ns
	M ar 16	M ar 17	Δ %	M ar 16	M ar 17	Δ %	M ar 16	M ar 17	Δ %	M ar 16	M ar 17	Δ %	M ar 16	M ar 17	Δ %	M ar 16	M ar 17	Δ %
Interest income	487	475	-2.3%	301	271	-10.1%	186	205	10.3%	127	134	5.3%	57	69	21.6%	2	2	1.8%
Interest expense	194	143	-26.3%	129	77	-40.9%	65	67	2.7%	47	42	-9.5%	19	26	35.1%	-1	-1	-48.3%
N et interest inco me	292	332	13.7%	172	194	13.2%	121	138	14.4%	8 0	9 1	14.0%	3 8	4 4	14.9%	2	3	18.8%
Dividends from equity instruments	2	0	-95.3%	2	0	-98.6%	0	0	--	0	0	--	0	0	--	0	0	--
Intermediatio n margin	294	332	12.9%	174	194	11.9%	121	138	14.4%	8 0	9 1	14.0%	3 8	4 4	14.9%	2	3	18.8%
Net fees and commission income	164	161	-1.9%	118	108	-8.5%	46	53	15.1%	31	39	25.7%	9	8	-19.0%	6	6	14.2%
Other operating income	-12	-15	-22.3%	-2	5	>100%	-11	-21	-94.8%	-13	-22	-69.9%	2	1	-44.3%	0	0	6.2%
B asic inco me	446	478	7.2%	290	308	6.2%	156	170	9.1%	9 8	108	10.4%	5 0	5 3	5.6%	8	9	16.0%
Net trading income	28	36	28.4%	5	21	>100%	24	16	-34.4%	14	12	-12.1%	9	2	-74.3%	0	1	>100%
Equity accounted earnings	14	20	41.5%	14	12	-13.4%	0	8	--	0	0	--	0	0	--	0	8	--
B anking inco me	488	534	9.4%	309	341	10.4%	180	193	7.6%	112	120	7.6%	5 9	5 5	-6.8%	8	18	>100%
Staff costs	138	137	-1.1%	92	90	-1.8%	47	47	0.3%	32	34	6.3%	11	9	-15.9%	4	4	-2.8%
Other administrative costs	92	89	-3.4%	56	55	-2.8%	36	34	-4.5%	23	23	-3.1%	11	10	-7.6%	2	2	-2.7%
Depreciation	13	13	-0.6%	7	8	12.9%	6	5	-17.2%	3	3	-0.9%	3	2	-36.0%	0	0	-26.5%
Operating co sts	243	238	-2.0%	155	153	-1.5%	88	86	-2.8%	58	59	2.1%	24	21	-14.5%	6	6	-3.0%
Operating net inco me bef. imp.	245	296	20.7%	154	188	22.4%	9 1	108	17.7%	5 4	6 1	13.4%	3 5	3 5	-1.6%	2	12	>100%
Loans impairment (net of recoveries)	161	149	-7.3%	142	126	-11.3%	19	23	22.7%	10	14	41.3%	9	8	-0.8%	0	0	>100%
Other impairm. and provisions	15	54	>100%	16	57	>100%	-1	-2	<-100%	0	0	-74.3%	-1	-2	<-100%	0	0	<-100%
N et inco me befo re inco me tax	6 9	9 3	34.0%	- 4	5	>100%	7 3	8 7	18.8%	4 4	4 7	7.4%	2 8	2 9	4.2%	2	11	>100%
Income tax	15	19	27.4%	-6	-3	38.3%	21	23	9.4%	12	14	15.9%	8	8	-2.0%	0	1	41.8%
Non-controlling interests	36	23	-35.9%	0	0	90.7%	37	23	-36.6%	0	0	--	0	0	-38.8%	37	23	-36.5%
N et inco me (befo re disc. o per.)	18	5 0	>100%	2	9	>100%	16	4 1	>100%	3 1	3 3	4.2%	19	2 1	7.4%	-35	-12	64.8%
Net income arising from discont. operations	29	0	-100.0%				29	0	-100.0%							29	0	-100.0%
N et inco me	4 7	5 0	7.4%				4 5	4 1	-8.3%							- 6	-12	<-100%

Glossary (1/2)

Capitalisation products – includes unit linked saving products and retirement saving plans ("PPR", "PPE" and "PPR/E").

Commercial gap – total loans to customers net of BS impairments accumulated minus on-balance sheet customer funds.

Cost of risk, gross (expressed in bp)- ratio of impairment charges accounted in the period to customer loans (gross).

Cost of risk, net (expressed in bp)- ratio of impairment charges (net of recoveries) accounted to customer loans (gross).

Cost to income – operating costs divided by net operating revenues.

Cost to core income - operating costs divided by the net interest income and net fees and commission income.

Core income - net interest income plus net fees and commission income.

Core net income - corresponding to net interest income plus net commissions deducted from operating costs.

Coverage of credit at risk by balance sheet impairments – total BS impairments accumulated for risks of credit divided by credit at risk (gross)

Coverage of credit at risk by balance sheet impairments and real/financial guarantees –total BS impairments accumulated for risks of credit plus real and financial guarantees divided by credit at risk (gross).

Coverage of non-performing loans by balance sheet impairments – total BS impairments accumulated for risks of credit divided by NPL

Credit at risk – definition broader than the non performing loans which includes also restructured loans whose changes from initial terms have resulted in the bank being in a higher risk position than previously; restructured loans which have resulted in the bank becoming in a lower risk position (e.g. reinforced collateral) are not included in credit at risk.

Credit at risk (net) – credit at risk deducted from BS impairments accumulated for risks of credit.

Customer spread – Difference between the spread on the loans to customers book over 3 months Euribor and the spread on the customers' deposits portfolio over 3 months Euribor.

Debt securities - debt securities issued by the Bank and placed with customers.

Dividends from equity instruments - dividends received from investments in financial assets held for trading and available for sale.

Equity accounted earnings - results appropriated by the Group related to the consolidation of entities where, despite having a significant influence, the Group does not control the financial and operational policies.

Loan book spread - average spread on the loan portfolio over 3 months Euribor.

Loan to value ratio (LTV) – Mortgage amount divided by the appraised value of property.

Loan to Deposits ratio (LTD) – Total loans to customers net of accumulated BS impairments for risks of credit to total customer deposits.

Net interest margin - net interest income for the period as a percentage of average interest earning assets.

Net operating revenues - net interest income, dividends from equity instruments, net commissions, net trading income, equity accounted earnings and other net operating income.

Net trading income - net gains/losses arising from trading and hedging activities, net gains/losses arising from available for sale financial assets, net gains/losses arising from financial assets held to maturity.

Non-performing exposures (according to EBA definition) – Non-performing loans and advances to customers more than 90 days past-due or unlikely to be paid without collateral realisation, even if they recognised as defaulted or impaired. Considers also all the exposures if the on-BS 90 days past due reaches 20% of the outstanding amount of total on-BS exposure of the debtor, even if no pull effect is used for default or impairment classification. Includes also the loans in quarantine period over which the debtor has to prove its ability to meet the restructured conditions, even if forbearance has led to the exit form default or impairments classes.

Non-performing exposures coverage ratio – Total BS impairments plus collaterals and expected loss gap divided by non-performing exposures.

Glossary (2/2)

Non-performing loans – Overdue loans more than 90 days including the non-overdue remaining principal of loans, i.e. portion in arrears, plus non-overdue remaining principal.

Non-performing loans ratio (net) – Loans more than 90 days overdue and doubtful loans reclassified as overdue for provisioning purposes less BS impairments accumulated for credit risk divided by total loans (gross).

Non-performing loans coverage ratio – Total BS impairments accumulated for credit risk divided by overdue and doubtful loans divided.

Loans losses reserves - Total BS impairments.

Loans more than 90 days overdue coverage - total BS impairments accumulated for risk of credit divided by total amount of loans overdue with instalments of capital and interest overdue more than 90 days.

Operating costs - staff costs, other administrative costs and depreciation.

Other impairment and provisions - other financial assets impairment, other assets impairment, in particular provision charges related to assets received as payment in kind not fully covered by collateral, goodwill impairment and other provisions.

Other net income – net commissions, net trading income, other net operating income, dividends from equity instruments and equity accounted earnings.

Other net operating income - other operating income, other net income from non-banking activities and gains from the sale of subsidiaries and other assets.

Overdue loans - loans in arrears, not including the non-overdue remaining principal.

Overdue loans coverage ratio – total BS impairments accumulated for risks of credit divided by total amount of loans overdue with instalments of capital and interest overdue.

Overdue and doubtful loans - loans overdue by more than 90 days and the doubtful loans reclassified as overdue loans for provisioning purposes.

Return on equity (ROE) – Net income divided by the average attributable equity, deducted from preference shares and other capital instruments.

Return on average assets (ROA) – Net income divided by the average total assets.

Securities portfolio - financial assets held for trading, financial assets available for sale, assets with repurchase agreement, financial assets held to maturity and other financial assets held for trading at fair value through net income.

Spread on term deposits portfolio – average spread on terms deposits portfolio over 3 months Euribor.

Tangible Equity – Shareholders equity minus goodwill and intangible assets.

Texas ratio – Non performing exposures divided by the sum of Tangible equity and Loan Losses Reserves i.e. NPE / (Tangible equity + LLRs).

Total customer funds - amounts due to customers (including debt securities), assets under management and capitalisation products.

Total operating income – net interest income, dividends from equity instruments, net fees and commissions income, trading income, equity accounted earnings and other operating income.