Banco Comercial Portugues

Earnings Release • Jan 30, 2018

Banco BPI

Consolidated results2017

30 January 2018

Note on captions' reclassification

• Certain captions of income and costs were reclassified in this results' presentation, and repositioned in the Profit an Loss account in accordance with the format used by CaixaBank (BPI's consolidating entity). The underlying accounting criteria were not affected by the change in the format adopted.
• The presentation of the loans and resources' portfolios was also modified, with the same objective of approaching the formats used by CaixaBank; however, the segmentation criteria have not been changed.

Acronyms and designations adopted

Units, conventional signs and abbreviations

d t y	Ye da to‐ te ar‐
y oy	Ye ar‐ on ‐y ea r
q oq	rte rte q ua r‐o n‐q ua r
R C L	las f d Re i ie c s	
C E B	Ce l k Eu Ba ntr ro p ea n a n
Bo P	k o f l Ba Po rtu n g a	vs
C M V M	do do de lor b l ár ( ke ) Co iss ão Me Va Mo i i ios Se it ies Ma Co iss ion t m rca es cu r r mm
A P M	lte fo A ive Pe Me t rna r rm an ce as ure s
I M M	ba k ke Int Mo Ma t er n ne y r
		E
T 1	ier T 1	F
C E T 1	Co ity ier Eq T 1 mm on u
R W A	k w hte d a R is ig ts e sse
T L T R O	d lon f Ta ina ing ion ete te t rg g er‐ rm re nc op era s
L C R	d L iq i ity io at co ve rag e r u

€, Eu E U R ro s,	eu ros
€, M M . e ur os	i l l ion m eu ros
h. h. €, t t eu ro s	ho d e t us an uro s
	ha c ng e
n.a	la b le i t a no va
0, –	l l o lev irr t nu r e an
vs	ve rsu s
b.p	ba is p int s o s
p. p.	int tag p erc en e p o
E	Est im ate
F	Fo ast rec

Disclaimer

The purpose of this presentation is purely informative and should not be considered as ^a service or offer of any financial product, service or advice, nor should it be interpreted as, an offer to sell or exchange or acquire, or an invitation for offers to buy securities issued by Banco BPI ("BPI") or any of the companies mentioned herein. The information contained herein is subject to, and must be read in conjunction with, all other publicly available information. Any person at any time acquiring securities must do so only on the basis of such person's own judgment as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information set out in the relevant documentation filed by the issuer, having taken all such professional or other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in this presentation.

BPI cautions that this presentation might contain forward‐looking statements concerning the development of its business and economic performance. While these statements are based on BPI's current projections, judgments and future expectations concerning the development of the Bank's business, ^a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from BPI's expectations. Such factors include, but are not limited to the market general situation, macroeconomic factors, regulatory, political or government guidelines and trends, movements in domestic and international securities markets, currency exchange rates and interest rates, changes in the financial position, creditworthiness or solvency of BPI customers, debtors or counterparts.

Statements as to historical performance, historical share price or financial accretion are not intended to mean that future performance, future share price or future earnings for any period will necessarily match or exceed those of any prior year. Nothing in this presentation should be construed as ^a profit forecast. In addition, it should be noted that although this presentation has been prepared based on accounting registers kept by BPI and by the rest of the Group companies it may contain certain adjustments and reclassifications in order to harmonize the accounting principles and criteria followed by such companies with those followed by BPI.

In particular, regarding the data provided by third parties, neither BPI, nor any of its administrators, directors or employees, either explicitly or implicitly, guarantees that these contents are exact, accurate, comprehensive or complete, nor are they obliged to keep them updated, nor to correct them in the case that any deficiency, error or omission were to be detected. Moreover, in reproducing these contents by any means, BPI may introduce any changes it deems suitable, may omit partially or completely any of the elements of this document, and in case of any deviation between such ^a version and this one, BPI assumes no liability for any discrepancy.

In relation to Alternative Performance Measures (APMs) as defined in the guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority on 5 October 2015 (ESMA/2015/1415), this report uses certain APMs, which have not been audited, for ^a better understanding of the company's financial performance. These measures are considered additional disclosures and in no case replace the financial information prepared under the International Financial Reporting Standards (IFRS). Moreover, the way the Group defines and calculates these measures may differ to the way similar measures are calculated by other companies. Accordingly, they may not be comparable. Please refer to the Glossary section for ^a list of the APMs used along with the relevant reconciliation between certain indicators.

This document has not been submitted to the Comissão do Mercado de Valores Mobiliários (CMVM) (Autoridade Portuguesa do Mercado de Capitais) for review or for approval. Its content is regulated by the Portuguese law applicable at the date hereto, and it is not addressed to any person or any legal entity located in any other jurisdiction. For this reason it may not necessarily comply with the prevailing norms or legal requisites as required in other jurisdictions.

Notwithstanding any legal requirements, or any limitations imposed by BPI which may be applicable, permission is hereby expressly refused for any type of use or exploitation of the content of this presentation, and for any use of the signs, trademarks and logotypes contained herein. This prohibition extends to any kind of reproduction, distribution, transmission to third parties, public communication or conversion by any other mean, for commercial purposes, without the previous express consent of BPI and/or other respective proprietary title holders. Any failure to observe this restriction may constitute ^a legal offence which may be sanctioned by the prevailing laws in such cases.

Index

' r la f io i ica io No te t t o n ca p ns ec ss n	3
la D isc im er	4

Results in 2017

h l h 1. H i i t s g g	5
l 2. C i i i t t o m m e r c a a c v y	7
l 3. R t e s u s	1 2
l h 4. B S t a a n c e e e	2 4
l k 5. C i o s n g r e m a r s	3 2
An ne xe s	3 4

BPI Consolidated Results in the FY 2017

i N t e n c o m e i i n c r e a s e s n l d i h P t t o r u g a a n n e l d d i t c o n s o a e	he l ( by lu l ) in in iv i in in 9 € 2 % d in in Ne Po 1 1 M 1 t t t ty tu to ts  co m e a c r g a cr ea se s up y oy ; ex c g no n re cu rr g re su l i da d in "a d " o f f lec he (‐ ) Co 1 0. 2 M € in ive in i 3 8 9 M € te t te t t t te  ns o ne co m e s r ep or re g n eg a n on re cu rr g m s f ( f ) No in ive im 3 8 9 € M t ts te ta  n re cu rr g ne g a p ac o a r xe s : (‐ ) in l, i h he lu in io d ly ire d in i h he le f –6 9 M € Po 7 8 M € tu t t ta te t t ts t t  r g a w v o n ry rm a ns a n ea r re m en p ro g ra m m e an g a w sa o da ( ) B P I V i Pe õe 9 M € + e ns s la d h he le f f d de l da (‐ ) d –3 2 0 € in Q i 2 % i io 2 2. 3 € in Q in ive M B F A, 1: B F A 1 M 4: te to t t t tr t  re w sa o o an co ns o n ; e x ao r ar y ne g a f ‐ f w h h ‐ ( ) la d h he las f f la h h f la by im 1 0 7. 4 M € ic 6 9 M € B P I e im i i ica io An ig in io t o t te te t t t t p ac o s a re w c s n o g o as a n ec on om y l a f d f fe he f he ke d h in io in irm ive in in i io in B F A in i I A S 2 9 te t t t t t t t t ta t rn a na cc ou n g s a n re sp ec e c a cc ou n g re co g n n o s ac co r g w
C t s o m e r u d r e s o u r c e s a n L i o a n s n c r e a s e	l d by ( ) Cu in 1. 8 i. € 6 % To Re B 5. ta to  s m er so ur ce s cr ea se + y oy ( ) fo l io ie in l in % B P I Lo Po Po 4 1 1 M € 6. 4 t to tu  + an r co m p an s r g a cr ea se s y oy
i C o r e r e e n e s r s e v u d t t a n r e c u r r e n c o s s f l l a	l m ( ) in ia in 1. 0 % in 2 0 1 F 7  an c ar p g u y oy ( ) iss io in Co 8. 9 % in 2 0 1 7  m m ns cr ea se y oy 1) du f o he d by ( lu d ) Re io 5. 3 % in in t ts  c n o ve r a co s oy ex c g no n‐ re cu rr g y ;
f d i L t t o c o s o c r e w i k r s	irm fo lo d f ( f he lo fo l ) Im 2 5 M € in 2 0 1 7 0. 1 1 % io t te t t  p a en r an s a n g ua ra n es o o an p or 2) ( ) ie d 3 0 € € in 2 0 6 Re M 1 4 M 1 te to  co ve r s am ou n vs
S t r o n g l i i i t t c a p a s a o n	d i is k r io f % d % by im irm d l la ls Cr 2. 9 1 6 3 t a t r t ts te  e a o an co ve ra g e p a en an co ra 3) f d by d l la ls N P E io 5. 1 % 1 1 7 % im irm t ts te  ra o an co ve ra g e p a en an co ra l ly lo l r f l o f ( ly, ) de d i io C 2. 3 % d 0 % d 2. 9 ive Fu E T 1 o 1 1 4. 1. 1 a ta t to ta t  + a ca p a s: an n p. p. re sp ec y oy , l ly lo de d i l r io fo in lu d in he fu l l im f he l ica io f d he le f bs i d ia ie d Fu I F R S 9 ta t t t t t t  a ca p a s p ro rm a c g p ac o ap p n o an sa o su r s an bu d d f d l o f in in No 2 0 1 C 1 o 1 3. 0 % 1 4. % De 7: E T 7 to ta s es se s a nn ou nc e a n c. an v.

1) Costs from voluntary terminations and early retirements.

2)Recoveries from loans previously written off.

3)According to EBA (European Banking Authority) criteria; considering the prudential supervision perimeter.

Recognition of the stake in BFA according with IAS 29 "inflation accounting"

• International accounting firms indicated at end–December, that in 2017 Angola should be considered ^a high inflation economy in accordance with IAS 29.
• BPI's consolidated result at 31 December 2017 includes an extraordinary negative impact of € 107.4 million on BFA' s contribution booked in Q4, of which ‐69 M.€ (BPI estimate) resulting from the application of IAS 29.
• The amounts estimated by BPI in the stake in BFA from the application of IAS 29 in the consolidated financial statements of 31 December 2017 consider an inflation rate of 23% in Angola in 2017 and imply:
• A slight increase (2%) of the value of the 48.1% equity stake in BFA, due to the revaluation of non‐monetary assets (tangible assets)
• Banco BPI's consolidated shareholders equity increase (by the same amount), albeit with:
  • estimated negative impact on net results, due to the loss in the net monetary position (‐69 M.€)
  • counterbalanced by a positive impact on revaluation reserves (foreign exchange)

Net income (excluding non‐recurring) of 191 M.€ in Portugal (2017), +21% yoy

N E T I N C O M E F	R O M T H	E A C T I V	I T Y I N	P O R T U	G A L
Em M €	2 0 1 6	1 Q 1 7	2 Q 1 7	3 Q 1 7	4 Q 1 7	2 0 1 7	 M € / 2 0 1 6 2 0 1 7
[ ] inc d 1. Ne t te om e a s r ep or	1 4 5	4 3	3 3 ‐	6 5	4 8	1 2 2	( ) 2 4
No ing im ts n‐ re cu rr p ac Co i h v lu ts t ta s o n ry w d e ly ina io te t rm ns a n ar 1) ire t ts re m en h he le f Ga in i B P I t t w sa o da õe V i Pe e ns s	‐1 2	8 ‐	6 9 ‐	0	0 9	7 8 ‐ 9	6 5 ‐ 9
[ ] l 2. To ta	1 2 ‐	8 ‐	6 9 ‐	0	8	6 9 ‐	5 7 ‐
[ ] lu d 3. Ne inc ing t om e e xc ing im [ ] =1 ‐2 ts no n‐ re cu rr p ac	1 5 7	5 0	3 6	6 5	3 9	1 9 1	3 3 +	 2 +

• Net profit from the activity in Portugal (excluding non‐recurring items) increases 33 M.€ to 191 M.€
• Net profit from the activity in Portugal "as reported" of 122 M.€ is penalized by negative impacts of 69 M.€ (costs with voluntary terminations and early retirements programme, only partially compensated by the gain with the sale of BPI Vida e Pensões)

1)In 2016, includes a gain with the revision of ACT.

2) Negative impact of 119 M.€ before taxes (recorded in the caption "Equity accounted results"), of which ‐76 M.€ (before taxes) related to the estimated impact from the accounting of the stake in BFA in accordance with IAS29, and +12 M.€ in deferred taxes.

	C O N I U I O N O A A N C I T R B T F R M B F D B
	2 0 1 7		Em M €	2 0 1 6	Q 1 1 7	2 Q 1 7	3 Q 1 7	Q 4 1 7	2 0 1 7	 M € / 2 0 1 6 2 0 1 7
			[ ] i bu io d 1. Co tr t te n n a s r ep or	1 6 8	1 6 5 ‐	5 4	6 0	6 0 ‐	1 1 1 ‐	( ) 2 7 9
			No ing im ts n‐ re cu rr p ac fro he le f Im 2 % t t p ac m sa o f d de l da B F A i io t o an co ns o n d Ex ina im tra ts t or ry p ac a 2)		‐2 1 2			‐1 0 7	2 1 2 ‐ 1 0 7 ‐	2 1 2 ‐ ( ) 1 0 7
			B F A [ ] l 2. To ta		2 2 1 ‐			0 1 7 ‐	3 2 0 ‐	( ) 3 2 0
		 % 2 1 % +	[ ] fo 3. Co i bu io be tr t n n re n on ‐ ing im ts re cu rr p ac [ ] =1 ‐2	1 6 8	4 7	5 4	6 0	4 7	2 0 8	4 0 +

• Contribution from BFA and BCI before non‐recurring impacts of 208 M.€ (+40 M.€ yoy)
• BFA's result (excluding non‐recurring impacts) in the 4th quarter was in line with last quarters.
• BFA contribution "as reported" was affected by:
• negative impact of 212 M.€ from the sale of 2% of BFA and deconsolidation in the 1st quarter
• estimated negative extraordinary impact of 107 M.€2) in the 4th quarter, of which ‐69 M.€ (after taxes) from the accounting of the stake in BFA in accordance with IAS29.

ROTE in Portugal of 9.6% (excluding non‐recurring)

	R E T U R N O N T A N G I B L E E Q	( ) U I T Y R O T E	( las hs ) 1 2 m t t on
		re cu rr	ing	as re p	d te or
		2 0 6 1	2 0 1 7	2 0 6 1	2 0 1 7
i R O T E 2 0 1 7	R O T E
n	2) d d a l loc d c l ( ) A j i M € te te ta us a ap	2 5 0 6	2 5 7 3	2 5 0 6	2 5 7 3
l d i i b i t t e x c u n g c o n r u o n	R O T E	1 3. 0 %	1 5. 5 %	1 2. 5 %	0. 4 %
f k i f i b k A t r o m s a e s n r c a n a n s :	lu d ing i bu io fro R O T E, tr t ex c co n n m ke in fr ica ba ks A ta s s n n
) 1 i f 9. 6 %  r e c u r r n g o	2) ( ) d j d a l loc d c i l € A M te te ta us a ap	1 8 5 6	2 0 0 5	1 8 5 6	2 0 0 5
d f 6. 2 % t  a s r e p o r e o	lu d bu fro R O T E, ing i io tr t ex c co n n m ke in fr ica ba ks A ta s s n n	8. 6 %	9. 6 %	7. 9 %	6. 2 %

2) The average capital considered in the calculation of ROTE excludes the average balance of intangible assets (average consolidated balance in 2017: 25 M.€.) and other comprehensive income (reserves) (average consolidated balance in 2017: ‐3 M.€.)

BPI expects to achieve in the activity in Portugal a ROTE > 10%(recurring) in 2020

1) Note that the recurring RoTE in Portugal (9.6%) benefits from an exceptionally low cost of credit risk and includes the contribution to net income of subsidiaries and business sold at the end of 2017 and which will cease to contribute to consolidated net income in 2018 (22 M.€ on an annual basis).

Sale of subsidiaries and businesses announced in Nov. and Dec. 17

The goals of the transactions are to: Improve the comercial offer to clients

• Focus in the core banking business
• Strengthen the Bank's capital ratios

M €	le Sa ds p ro ce e	l g Ca i in ta p a ( ) ‐ta p re x	in Im t p ac C E T 1 io t ra fu l ly lo de d a
io d in 2 0 Tr 1 7 t te an sa c n ex ec u
da i õe B P I V Pe e ns s	1 3 5	8	0. 9 + p. p.
io be le d Tr t to te an sa c ns co m p in 2 0 1 8
ão de B P I Ge Ac ivo t t s s	7 5
B P I G I F	8
d f Eq i ies in t te u a n co rp or a an ce	4	1 6 4	0. 9 + p. p.
ds iss Ca r ua nc e	5 3
ha ir in M t a er c n cq u g	6 0
l To ta	3 3 5	1 2 7	1. 8 + p. p.

The sale of BPI Vida e Pensões took place in Dec.17 and was recognized in the financial accounts for the year. It generated a pre‐tax capital gain of 8 M.€ and an impact in the CET1 fully loaded ratio of +0.9 p.p.

• The remaining transactions will take place in 2018. The estimated capital gain is 164 M.€ (before taxes) and the estimated impact in the CET1 fully loaded ratio is +0.9 p.p.
• The impact in BPI future earnings generation (consolidated ) is estimated to be ‐22 M.€ on an annual basis. In 2018 that impact is ‐16 M.€.

SALE OF SUBSIDIARIES AND BUSINESSES ANNOUNCED IN NOVEMBER AND DECEMBER 2017

Results in 2017

1. Highlights

2. Commercial activity

• 1. Results
• 1. Balance Sheet
• 1. Closing remarks

Annexes

Total Customer resources increase 1.8 Bi.€ yoy

Customer resources

	de 1 7 Yo Y v c‐ s. de 1 6 c‐ as			vs	Pr ia o m em or
In M €			de 1 6 c‐	q oq 1 7 se	De 1 7 c‐	de 1 6 c‐
	d te or	1) fo p ro rm a	fo ro rm a	p. fo ro rm a	I + B P	as
	rep		p	p	2) i da B P I V	d te rep or
On ‐ba lan he I. t ce s e	2 0 6 8 6	2 0 5 5 6	0. 6 %	0. 1 %	2 4 2 5 1	2 3 9 7 3
re so ur ce s
3 De its p os	2 0 6 8 6	2 0 3 0 6	1. 9 %	0. 1 %	2 0 1 5 5	1 9 7 2 4
ic ip ing its in Pa rt t a un		2 5 0	1 0 0 % ‐			2 5 0
l da d m l fu ds i te tu co ns o u a n
l Ca ita isa ion ins t p ur an ce					4 0 9 6	4 0 0 0
de I I. As ts se un r	1 0 1 2 3	9 3 4 9	8. 3 %	1. 1 %	8 3 5 5	6 6 2 7
t ma na g em en				‐
4 l fu ds M tu u a n	6 0 2 7	5 3 4 9	1 2. 7 %	2. 2 % ‐	5 8 0 5	5 2 4 4
5 lan Pe ion ns p s					2 7 4 7	2 4 1 8
ita l isa ion ins Ca t p ur an ce	4 0 9 6	4 0 0 0	% 2. 4	% 0. 5
b l ic f fe ing I I I. Pu o r s	2 1 5 1	1 3 0 4	% 6 4. 9	% 1 3. 5	2 1 5 1	1 3 0 4
l To ta	3 2 9 6 0	3 1 2 0 9	5. 6 %	0. 5 %	3 4 9 5 5	3 2 9 4 0

1) Dec.16 proforma considering the sale of BPI Vida e Pensões. After the sale of BPI Vida e Pensões, capitalization insurance placed with BPI customers are recorded off balance sheet and pension plans management ceases to be included in BPI's consolidation perimeter.

2) Dec.17 including the resources of BPI Vida which was sold in the end of 2017.

3) Includes bonds placed with customers of 94 M.€ in Dec.16 and 35 M.€ in Dec.17.

4) BPI Alternative Fund ceased to be consolidated from March 2017 onwards and started being consolidated off balance sheet. In Dec. 16 that fund (250 M.€) was recorded in the caption "participating units in consolidated mutual funds". Adjusted by the deconsolidation of the fund, the caption "Mutual Funds" increased by 7.7% YoY. 5) Includes BPI Group employee pension funds of 1 397 in Dec.16 and 1 619 in Dec.17.

Total Customer Resources increased by 1.8 Bi.€ yoy:

• Deposits grew 380 M.€ (+1.9%)
• Strong growth in mutual funds +678 M.€, +12.7% (+ 7.7% adjusted by the deconsolidation of BPI Alternative Fund)
• Public offerings placed with Customers increased 846 M.€ (almost entirely OTRV). In the 4Q, BPI placed with Customers 457 M.€ of OTRV (Floating Rate Treasury Bonds).

Sources: Banco BPI, Bank of Portugal, APS (Portuguese Association of Insurers), APFIPP (Portuguese Association of Mutual Funds, Pensions and Assets), IGCP (Portuguese Treasury and Debt Management Agency).

Growth drivers

6) Does not include the effect of the securitisation operations (BPI calculation).

7) Excludes PPR's in the form of mutual funds. Including PPR's in the form of mutual funds, BPI Gestão de Activos market share in mutual funds is 26.8% in Oct.17 (25.8% in Dec.17).

8) PPR's in the form of mutual funds and capitalisation insurance.

9) Excludes PPR in the form of capitalisation insurance.

BPI financing to companies in Portugal increases 6.4 % in 2017

Loans to customers by segments

	de 1 7		Yo Y v		Pr o m	ia em or
	c‐	de 1 6 c‐	s.	q oq vs	De 1 7 c‐	de 1 6 c‐
fo l Gr io, in M. € ort os s p	as	1) for p ro ma	de 1 6 c‐	1 7 se p.	B P I +	as
	d ort rep e		for p ro ma	for p ro ma	2) i da B P I V	d ort rep e
in d iv i du ls I. Lo s t an o a	1 2 2 8 0	1 2 1 0 7	1. 4 %	0. 8 %	1 2 2 8 0	1 2 1 0 7
loa Mo rtg ag e ns	1 1 0 8 4	1 1 0 8 4	( ) 0. 0 %	0. 1 %	1 1 0 8 4	1 1 0 8 4
he loa ls Ot in d iv i du to r ns a	1 1 9 6	1 0 2 3	1 7. 0 %	7. 9 %	1 1 9 6	1 0 2 3
ies I I. Lo Co s t an o mp an	8 3 3 1	8 2 3 2	1. 2 %	( ) 0. 7 %	8 3 3 1	8 2 3 2
Lar d m d ium ize d g e a n e s tes co rp ora	4 7 4 5	3 4 5 5	6 % 4.	( ) 0. 2 %	4 7 4 5	3 4 5 5
l l bu ine Sm a s sse s	2 1 1 7	1 9 1 6	% 1 0. 5	% 4. 8	2 1 1 7	1 9 1 6
l ies in l To Co Po ta rtu mp an g a	6 8 6 3	6 4 5 1	% 6. 4	% 1. 3	6 8 6 3	6 4 5 1
f d dr d Pro j ina Ma i ect nc e a n h Bra nc	1 4 6 8	1 7 8 0	( ) 1 7. 5 %	( ) 9. 0 %	1 4 6 8	1 7 8 0
b l I I I. Pu ic s to ec r	1 3 0 5	1 4 1 7	( ) 7. 9 %	( ) 7. 0 %	1 3 0 5	1 4 1 7
he I V. Ot r	3 2 8	3 7 2	( ) 1 2. 0 %	( ) 1. 2 %	3 2 6	3 7 2
bto l Su ta	2 2 2 4 4	2 2 1 2 8	0. 5 %	( ) 0. 3 %	2 2 2 4 2	2 2 1 2 8
V. B P I V i da Pe õe e ns s
fo l io ort p					7 8 8	1 3 0 3
l To ta	2 2 2 4 4	2 2 1 2 8	0. % 5	( ) 0. 3 %	2 3 0 3 1	2 3 3 1 4
No te :
loa fo l Ne io t ort n p	2 1 6 5 9	2 1 4 4 5	1. 0 %	( ) 0. 1 %	2 2 4 3 4	2 2 7 3 6

1) Dec.16 proforma considering the sale of BPI Vida e Pensões. The sale of BPI Vida e Pensões has an impact in the total amount of the loan portfolio but not in the segmental reporting.

2) Dec.17 including the debt securities portfolio of BPI Vida e Pensões which was sold in the end of 2017.

Growth trends are maintained in the 4rd quarter

• Growth in the segments of corporates and small businesses.
• Stabilisation of the mortgage loan portfolio and growth in consumer loans.
• After deleveraging 6 Bi.€ between 2010 and 2015, total loan portfolio stabilised and shows signs of selective growth in 2017.

3) Large and medium‐sized companies and small business in Portugal. Excludes project finance and Madrid branch loan portfolio.

Mortgage loan origination increases by 19% yoy in 2017

Mortgage loans

• Origination of mortgage loans increases by 19% yoy to 1066 M.€ in 2017.
• Origination exceeds amortisations in the 3rd and 4th quarter and signals the inversion of the portfolio's downward trend.
• Consistent increase in the loan portfolio market share (11.2% as of November 2017) in a market segment that is still shrinking.

Corporate and small business loans in Portugal increase by 411 M€. Increase in BPI market share

Corporate and small business loans

1) Does not include project finance nor Madrid branch loan portfolio. Source: BPI and BoP.

2) Loans to non financial domestic companies

• Growth of 4.6% (yoy) in loans to Large and Medium‐sized companies in Portugal (excludes project finance and Madrid branch loan portfolio).
• Growth of 10.5% (yoy) in loans to small business.
• Gradual increase in market share (8.3% in November 2017).

Results in 2017

• 1. Highlights
• 1. Commercial activity

3. Results

• 1. Balance Sheet
• 1. Closing remarks

Annexes

Financial margin (narrow sense) increased 1.0% in 2017 (yoy)

Financial margin (narrow sense) increased 2.5% in the 4Q17 (qoq)

Financial margin (narrow sense, accumulated) increases 1.0% (yoy), despite the cost of 13 M.€ of subordinated debt issued in Mar. 17

Trends in margin evolution:

• Reduction in the average cost of term deposits (in euro) to 0.08% in 4Q17 Loan portfolio in Portugal shows signs of growth trend to resume
• Reduction in the spreads of corporate loans
• Cost of 13 M.€ in 2017 from the subordinated Tier II debt issued on 24 Mar.17 (remuneration Euribor 6M + 5.74%)

Intermediation margin remains stable at 173 basis points

New time deposits with an average remuneration of 0.02% in December 2017

¹⁾ From 4Q16 onwards (inclusive) it refers to the deposits' remuneration contracted in euros.

Slight decrease in the loan spread offset by a slight decrease in the cost of funding in the 4th quarter

1) Intermediation margin = loan portfolio average interest rate – deposits average interest rate.

• Adjustment of the cost of time deposits has been the main factor for the improvement of the intermediation margin, more than compensating the spreads narrowing on the loan side.
• Average remuneration of time‐deposits is close to zero.
• Average remuneration of the loan portfolio decreases slightly.

Commissions increased by 8.9% yoy

Commissions

Commissions by business area

In M €	2 0 1 7	2 0 1 6	Yo Y
k in iss io Ba n g co mm ns	1 8 0	1 2 7	4. 4 %
1) d Ins in ia io te t ur an ce rm e n	6 0	5 9	2. 2 %
2) As t m t se an ag em en	5 7	4 1	3 7. 1 %
l To ta	2 9 7	2 7 3	8. 9 %
No te :
i l in ks in Un t g ro ss m ar g	1 4	3 1	2. 0 %

1)Includes unit links gross margin.

2) BPI Alternative Fund ceased to be consolidated from March 2017 onwards. In the consolidation of that fund, net commissions paid by the BPI Alternative Fund of 7.0 M.€ in 2016 and 2.2 M.€ in the first quarter 17 were recorded. Taking into account the deconsolidation, the year‐on‐year change

• Net commissions increased 8.9% yoy in Dec.17
• Banking commissions increased 4.4% yoy in Dec.17
• Asset management commissions show strong growth: + 21.8% yoy (adjusted by the deconsolidation of BPI Alternative Fund)

Overhead costs decreased 5.3% (yoy, excluding non‐recurring items)

Overhead costs excluding costs from voluntary terminations and early retirements decreased by 25.5 M.€ (‐5.3%) yoy

• Personnel costs (excluding non‐recurring items) decreased by 23.2 M.€ (‐8.0%) yoy
• BPI expects to reach a cost‐to‐income close to 50% in 2020

¹⁾ Additionally, at Dec.17, BPI had 39 investment centers and 35 corporate centers in Portugal, thus totalling 505 business units.

²⁾ Calculated using 2015 costs and revenue proforma for the restatement of BFA's contribution to the consolidated result in accordance with IFRS 5.

Target of 120 M.€ of synergies already achieved

• c.122 M.€ of synergies of costs and revenues from initiativescompleted or under way.
• Target of 120 M.€ of synergies already achieved.
• Restructuring costs should be significantly lower than the 250 M.€ initially announced:
• oOPEX already accounted: 172 M.€*
• o CAPEX committed: 28 M.€ (of which, 7 M.€ already made)

*Includes 4.2 M.€ OPEX of CaixaBank

• The bulk of the staff restructuring has been met with the reduction of c. 900 people coming from the departures occurred at 2016 year‐end and as a result of the voluntary terminations and early retirements programme launched in 2017.
• Initiatives already executed provide c.87 M.€ (not deducted from amortization of CAPEX).
• Initiatives under way to provide c. 37 M.€ (not deducted from amortization of CAPEX).
• The synergy calculations are deducted from recurrent OPEX costs and the amortization of investments made to obtain synergies.

Employee pension liabilities covered at 98%

Pension fund return (2017, yoy) 13.1%

M. €	3 1 De 1 6 c.	3 1 De 1 7 c.
l p l b l To ice ia i i ta t s ty a s er v	1 4 6 3	1 6 0 4
1) f t fu he io ds Ne t a ts s s e o p en s n n	1 4 3 1	1 5 6 8
f c f p l b l De io ia i i ie t g re e o ov er ag e o en s n s	9 7. 8 %	9 7. 7 %
i s c D nt te ou ra	% 2. 0 0	% 2. 0 0
la h r Sa t te ry g row a	1. 0 0 %	1. 0 0 %
io h r Pe wt te ns ns g ro a	0. 0 % 5	0. 0 % 5
l b le Mo i Me rta ty ta n :	2) / T V 7 3 7 7 – 2 y ea rs	/ T V 8 8 9 0
l i b le W Mo rta ty ta : om en	2) / T V 8 8 9 0 – 3 y ea rs	2) / T V 8 8 9 0 – 3 y ea rs

E M P L O Y E E P E N S I O N L I A B I L I T I E S, M. €			3), A C T U A R I A L D E V I A T I O N S I N T H E P E R I O D M €
M. €	3 1 De 1 6 c.	3 1 De 1 7 c.		M. €
l p ice l ia b i l i To ta t s ty a s er v	6 3 1 4	6 0 1 4	l a l de To ia iat ion 3 1 De 1 6 ta ctu t ar v s a c.	( ) 2 4 4. 1
1) f t he io fu ds Ne t a ts s s e o p en s n n	1 4 3 1	1 5 6 8	io fu ds in de ia io Pe t ns n n co me v n	1 4 7. 3
f c f p l b l De io ia i i ie t g re e o ov er ag e o en s n s	9 7. 8 %	9 7. 7 %	ha he l b le C in i t ta ty ta ng e m or	( ) 6 3. 4
D i s c nt te ou ra	2. 0 0 %	2. 0 0 %	i sa b i l i io D ty p en s ns	( ) 7. 5
la h r Sa t te ry g row a	1. 0 0 %	1. 0 0 %	fro in he C b le he io l m in im Im A T t t t t t p ac a m n a na un in wa e cre a s e	( ) 4. 4
io h r Pe wt te ns ns g ro a	% 0. 5 0	% 0. 5 0	g d he la A j io tm ts to t t us en p op u n	( ) 1 9. 7
l b le Mo i Me rta ty ta : n	2) / T V 7 3 7 7 – 2 y ea rs	/ T V 8 8 9 0	Ot he r	( ) 9. 1 7
l i b le Mo W rta ty ta om en :	2) / T V 8 8 9 0 – 3 y ea rs	2) / T V 8 8 9 0 – 3 y ea rs	l a ia l de iat ion To 3 1 De 1 7 ta ctu t ar v s a c.	( ) 2 1 1. 5

• Pension fund return of 13.1% yoy with a positive impact of 147 M.€ in actuarial deviations.
• BPI adopted in June 2017 a more conservative mortality table for men (TV 88/90).
• Amount of liabilities already includes the increase from the programme of early retirements and voluntary terminations of 2017.

2)For the target population, the age below the actual age of beneficiaries is two years for men and three years for women respectively, which is equivalent to considering a higher life expectancy. 3)Recognised directly in shareholders, in accordance with IAS19.

¹⁾In Dec. 16 includes 75.5 M.€ of contributions transferred to the pension funds in the beginning of 2017.

Loan impairments of 25 M.€ and recoveries of 30 M.€ (2017)

Cost of credit risk1)

COST OF CREDIT RISK

(Impairments after deducting recoveries from loans previously written off)

	20 12	20 13	20 14	20 15	20 16	20 17
M. €	2 4 2	2 4 9	1 5 8	8 7	1 9	‐5
loa % n fo lio po r	0. 9 1 %	0. 9 8 %	0. 6 6 %	0. 3 8 %	0. 0 9 %	‐0. 0 2 %

Note: amounts from Dec.12 to Dec.15 relate to the domestic activity.

Impairments amounted to 25 M.€ in 2017, which corresponds to 0.11% of the loan portfolio.

• The impairments of 25 M.€ benefited from 20 M.€ of reversals and recoveries of loans that had not been written off, therefore impairments before those reversals and recoveries amounted to 45 M.€.
• Loan recoveries previously written off amounted to 30 M.€ in the same period, of which 14.2 M.€ (recorded in the third quarter) relate to a single recovery situation.

1) In annualised terms. In the annualisation of the indicator, a recovery of 14.2 M.€ in the third quarter related to a single situation was not annualised.

Results in 2017

• 1. Highlights
• 1. Commercial activity
• 1. Results

4. Balance Sheet

1. Closing remarks

Annexes

NPE ratio decreases from 6.6% to 5.1% and credit at risk stands at 2.9%

Credit at risk (Bank of Portugal criteria)

Note: amounts from Dec.14 to Dec.15 relate to the domestic activity.

NPE ratio (EBA criteria)

• NPE ratio decreases 1.5 p.p. in 2017, to 5.1%;
• Coverage of 43%1) by impairments and 117% by impairments and collateral

Note: amounts from Dec.14 to Dec.15 relate to the domestic activity.

Credit at risk (Bank of Portugal criteria)

• Credit at risk ratio of 2.9% at Dec.17
• Coverage of 92%1) by impairments and 163% by impairments and collateral

Non performing loans ratio (CaixaBank criteria)

• Non performing loans ratio of 5.1%
• Coverage of 50% by impairments and 118% by impairments and collaterals

Forborne exposures (EBA criteria2))

3 1 2 0 1 De 7	fo ing Pe r rm	lu de d in Inc	l To ta
c.	loa ns	N P E
( ) bo € Fo M. r rn e	5 7 1	6 8 2	2 3 1 5
( ) bo io % f g d i Fo t t e r rn e r a a s o ro s s cr e xp os ur e	9 % 1.	2. 2 %	% 4. 1

Forborne exposures (EBA criteria)

46% of forborne exposures are performing loans

1) Cover by impairments accumulated in the balance sheet for loans and guarantees; does not consider collaterals. 2) NPE ratio and forborne ratio considering the prudential supervision perimeter.

Foreclosed properties at very low levels in BPI

Foreclosed properties of 65 M.€ (net of impairments)

Sale of 538 properties in 2017 for 67.5 M.€. Positive impact in profits before taxes of 12.7 M.€.

Balanced funding structure and comfortable liquidity position

• Client Resources are the main source of funding of the Balance sheet (70% of assets).
• Loan to Deposit ratio of 105%.
• 2.0 Bi.€ of funds obtained with the ECB (TLTRO). BPI still has € 8.9 billion of high quality liquid assets and assets eligible as collateral for additional funding from the ECB.
• Portfolio of financial assets available for sale of 3.9 Bi.€, of which 3.0 Bi.€ of short term public debt and 0.5 Bi.€ of medium and long term public debt with a residual maturity of 1.3 years.
• Recourse to wholesale debt market is small (3% of assets).

1) High Quality Liquid Asset.

€ M	k Bo o lue va ( ) € M	/ ins Ga ( los ) se s	du l Re i s a i tu ty m a r , y ea rs
ho b l S ic t‐ te r rm p u 3) de b t	2 9 8 3	0	0. 5
4) b l de b M L T p ic t u	5 1 6	1	1. 3
Eq i ty, te u co rp or a bo ds d o he t n a n r	3 7 7	8 5
l To ta	3 8 7 5	8 6

3) Portugal

4) Portugal (64%), Italy (36%).

¹⁾ Includes 300 M.€ of subordinated debt issued in the 1Q17.

²⁾ Average amount (last 12 months) of LCR components calculation: Liquidity Reserves (3 857 M.€); Total net outflows (2 263 M.€).

Common Equity Tier 1 ratio (fully loaded)

Common Equity Tier 1 ratio

Common Equity Tier 1 proforma ratio CONSOLIDATED (FULLY LOADED)

• CET1 fully loaded ratio of 12.3%
• Full impact from the application of IFRS9 accounting standard of ‐0.2 p.p. in the CET1 fully loaded ratio

16 144

CET1 fully loaded proforma ratio considering full recognition of the impact from IFRS 9 and the sale of subsidiaries and businesses3) announced in Nov. and Dec. amounts to 13.0% 1)Including the impact of the sale of 2% of BFA and deconsolidation. 2)Net income in Portugal excluding capital gains from BPI Vida, net of RWA (loans) increase (excluding DTA and without equity risk class). 3)Includes contribution from BFA and others.

4) Sale of BPI Gestão de Activos, BPI GIF, Equities and Corporate finance businesses, issuance of cards and merchant acquiring.

Capital ratios

l f l l C i i t t a p a r a o s u C O N S O L I D A T E D	l d d y o a e						i l i h C t t a p a r a o s p C O N S O L I A D T E D	i i a s n g n
	3 1	D 2 0 1 6 e c.	3 1 D e	2 0 1 7 c.		l Ca i ta p		3 1 D 1 7 e c.
M €	A s d t r e p o r e	f P r o o r m a ( inc lu d ing he le t sa f f d 2 % B F A o o an de l da ) i io t co ns o n	A s d t r e p o r e	f P r o o r m a ( d s le I F R S 9 an a f s bs d i ia ies o u r & bu ) ine s ss es	i l Ca ta p ire ts re q u m e n ( ) 2 0 1 8 S R E P	ire ts re q u m e n fu l ly lo d d a e 1) ( ) S R E P	€ M	d A t s r e p o r e
C i E T 1 t r a o	% 1 1. 1	0. 3 % 1	2. 3 % 1	3. 0 % 1	8. % 7 5	9. % 7 5	C i E T 1 t r a o	3. 2 % 1
i i T I t e r r a o	% 1 1. 1	% 1 0. 3	% 1 2. 3	% 1 3. 0	% 1 0. 2 5	% 1 1. 2 5	T i I i t e r r a o	1 3. 2 %
l i l T t t o a c a p a i t r a o	1 1. 2 %	1 0. 3 %	1 4. 0 %	1 4. 7 %	1 2. 2 5 %	1 3. 2 5 %	l i l i T t t t o a c a p a r a o	1 4. 6 %
L i t e v e r a g e r a o			6. 8 %		3. 0	) 2 %	i L t e v e r a g e r a o	% 7. 4

Total capital ratio fully loaded of 14.0%

• Total capital ratio fully loaded proforma considering the full recognition of the impact from IFRS 9 application and the sale of subsidiaries and businesses announced in Nov. and Dec. reaches 14.7%
• BPI meets SREP minimums for CET1, T1 and total ratio
• Leverage ratio of 6.8% fully loaded

1)Minimum requirements applicable in 2021. 2)Minimum value in calibration.

Impacts of IFRS 9 adoption

31 December 2017

One‐off impact in prudential ratios: BPI will not make use of the transition regime (phasing‐in);

Reduced impact from the new rules for classification and measurement of financial assets as a result of the prudent policies followed by BPI;

Impairment: 37 M.€ increase in loan impairments.

BPI has investment grade long‐term credit rating from two agencies

	… A A‐, AA AA d A AA + a n ,	d A … A a3, Aa 2, Aa 1 a n aa	… A A‐, AA AA d A AA + a n ,
e d	A +	A 1 ds B P I M Bo tg or ag e n	A +	( ) h h A i g
a r G	A	A 2	A	A
t n e	A‐	3 A	A‐	( l ) A o w
m t s e	B B B +	B 1 a a	B B B k Ba 1 + n	( h h ) i B B B g
v n I	B B B	2 B a a	l B B B Po tu r g a	B B B
	B B B‐ k l Ba 1 Po tu n r g a	B 3 a a	B B B‐	( ) l B B B o w
	B B +	k Ba 1 B 1 l Po tu n a r g a	B B +	( h h ) B B i g
e d a	B B	B 2 a	B B	B B
r g t n	k 2 Ba B B‐ n	B 3 a	B B‐ k 2 k 3 Ba Ba n n	( l ) B B o w
e m t	B +	k k 2 3 1 Ba Ba B n n	k Ba 4 B + n	( h h ) i B g
s e v n	B	2 B	B	B
I ‐ n o	B‐	3 k B Ba 4 n	B‐	( ) l B o w
N	C C C +	C 1 a a	C C C +	( h h ) C C C i g
	d D … C CC CC C‐, CC C a n , ,	k C 2 Ba 5 n a a	d D … C CC CC C‐, CC C a n , ,
		d C Ca a3, Ca an …

… A A‐, AA	d A AA AA + a n ,
A +
A
A‐
B B B +		k Ba 1 n
B B B	l Po tu r g a
B B B‐
B B +
B B
B B‐		k Ba 2 n	k Ba 3 n
B +		k 4 Ba n
B
B‐
C C C +
… C CC CC ,	C‐, CC C a d D n ,

( hig … A AA AA ,	h ), ( low AA AA ,	)
	M or	ds Bo tg ag e n
		k Ba 1 n
	l Po tu r g a	k Ba 3 n
		k Ba 2 n
		k Ba 4 n
( h h ) C C C i g		k Ba 5 n

… CCC, CCC (low), CC (high), CC, CC (low), C (high), C, C (low), D

Investment grade BBB ‐

Investment grade BBB ‐

• BPI has "investment grade" ratings from Standard & Poor's and Fitch Ratings
• BPI is one of two banks in Portugal to have investment grade ratings from 2 or more rating agencies, which is a necessary condition to be able to grant international guarantees.

Results in 2017

• 1. Highlights
• 1. Commercial activity
• 1. Results
• 1. Balance Sheet

5. Closing remarks

Annexes

Results in 2017 – highlights

Results in 2017

Annexes

• Income Statements and Balance sheet in accordance with IAS / IFRS
• Profitability, efficiency, credit quality and solvency (IAS / IFRS) as in the Bank of Portugal's Instruction no. 23/2011
• Income Statements and indicators proforma considering BPI Vida e Pensões, BPI Gestão de Activos e BPI GIC contribution fully consolidated
• Tables of historical reconciliation of information
• Alternative Performance Measures

Consolidated income statement in accordance with IAS / IFRS

Consolidated income statement of 2017

With reclassification of the contribution of BPI Vida e Pensões, BPI Gestão de Activos and BPI GIF to Net income from discontinued operations (IFRS 5).

At 23 November 2017, BPI signed contracts for the sale of its stakes in BPI Vida e Pensões, BPI Gestão de Activos e BPI GIF, as disclosed to the market on that date.

According to IFRS 5 – Non‐current Assets Held for Sale and Discontinued Operations, the operations of these subsidiaries are classified as discontinued operations.

The application of IFRS 5 implies that:

• The contribution of these subsidiaries for BPI's 2017 consolidated result is recorded under the caption "Net income from discontinued operations" in the consolidated Profit and Loss account.
• The assets and liabilities of these subsidiaries are reclassified under the captions "Non current assets held for sale and discontinued operations" and "Non current liabilities held for sale and discontinued operations", respectively, in the consolidated Balance Sheet.

The consolidated profit and loss account is shown, with the contribution from those subsidiaries reclassified to the caption "Net income from discontinued operations".

It should be noted that the sale of BPI Vida e Pensões took place in Dec.2017 and generated a capital gain of 9 M.€ (after taxes) in the year.

	for Pro ma	/ da it h IA In S IFR S acc or nce w
	de da de i ing BP I V i BP I Ge ão st co ns r ,	bu f B da de i ion PI V i BP I Ge ão Ac ivo ntr t st t co o s ,
In M .€	d fu l ly Ac ivo BP I G IF t s a n	d las f d t fro BP I G IF r i ie inc an ec s o om e m
	l i da d te co nso	d isc inu d o ion t t on e p era s
	20 17	20 17
ina ia l m in F nc arg na rro w s en se	3 6 7.7	3 6 7. 2
hn l re lt o f Te ica ins ntr act c su ura nce co s	1 8. 6
is ion lat ing ise d c Ne t c to ort ost om m s re am	2 0. 8	2 0. 8
l m F ina ia in ‐ R C L nc arg	4 0 7. 1	3 8 8. 1
fro Inc ity ins ‐ R C L tru nts om e m eq u me	6. 5	6. 5
Ne iss ion inc R C L t c om m om e ‐	2 9 7. 1	27 6. 4
( ity d r lts ing iat d Eq nte u ac cou es u ea rn s a sso c e	1 24. 8	1 24. 8
ies ) ‐ R C L co mp an
f Ne inc ina ia l o ion t t om e o n nc p era s	14. 5	1 3. 8
Ne ing inc t o t p era om e	( ) 1 8 6. 3	( ) 1 8 4.7
fro ba k Op ing inc ing iv ity ‐ R C L t t era om e m n ac	6 6 3. 7	6 24. 9
l co Pe sts rso nn e	( ) 3 74 9	( ) 3 6 9. 1
f w h h: l co O ic No ing sts n‐r ec urr p ers on na	( ) 1 0 6. 9	( ) 1 0 5. 8
l a dm in ist ive Ge rat sts ne ra co	( ) 1 6 5. 8	( ) 1 6 3. 4
d a De iat ion isa ion rt t p rec an mo	( ) 21. 9	( ) 21. 9
Ov he d c ost er a s	( ) 6 2. 6 5	( ) 4. 3 5 5
ing f it be for im irm d p is ion Op t ts era p ro e p a en an rov s	1 0 1. 1	7 0. 6
f loa Re int d e st a cov ery o ns, ere n xp en ses	2 9. 8	2 9. 8
irm los d p is ion for loa d Im t p a en ses an rov s ns an	( ) 25. 2	( ) 25. 2
tee et g ua ran s, n los d o he Im irm is ion	0. 0	0.
t t et p a en ses an r p rov s, n inc be for inc	1	0
Ne t e t om e e om ax	0 8 5.	2 75.
Inc e t om ax	( ) 9 5. 5	( ) 8 7.7
fro Ne inc inu ing ion t nt t om e m co op era s	1 0. 2	( ) 1 2.5
fro d d o Ne inc isc inu ion t t t om e m on e p era s bu b le t l l fro Inc i int ttr ta ntr sts		2 2.7
ing om e a o n on ‐co o ere m inu ion nt t	( ) 0. 0	( ) 0. 0
ing co op era s bu b le t l l fro Inc i ing int ttr ta ntr sts om e a o n on ‐co o ere m
d isc inu d o ion t t on e p era s
inc Ne t om e	0. 2 1	0. 2 1

Captions reclassified according to the format used by CaixaBank (BPI's consolidating entity). The underlying accounting criteria were not affected by the change in the format adopted.

Quarterly consolidated income statement in accordance with IAS / IFRS

With reclassification of the contribution of BPI Vida e Pensões, BPI Gestão de Activos and BPI GIF to "Net income from discontinued operations" (IFRS 5)

Captions reclassified according to the format used by CaixaBank (BPI's consolidating entity). The underlying accounting criteria were not affected by the change in the format adopted.

	20 17	4Q 17	3Q 17	2Q 17	1Q 17	20 16
		1) for pro ma	1) for pro ma	1) for pro ma	1) for pro ma	1) for pro ma
ina ia l m in F nc arg na rro w se nse	3 6 7. 2	9 3. 8	9 1. 3	8 9. 9	9 2. 2	3 6 3. 6
hn ica l re lt o f ins Te ntr act c su ura nce co s
Ne is ion lat ing ise d c t c to ort ost om m s r e am	2 0. 8	5. 4	5. 1	4. 6	5. 8	2 1. 2
l m F ina ia in ‐ R C L nc arg	3 8 8. 1	9 9. 2	9 6. 4	9 4. 5	9 7. 9	3 8 4. 9
fro Inc ity ins ‐ R C L tru nts om e m eq u me	6. 5	0. 1	0. 1	6. 3	0. 1	8. 5
Ne iss ion inc R C L t c om m om e ‐	27 6. 4	75 6	7 1. 1	6 7.7	6 2. 0	2 6 2. 3
d r lts ( d c ) ‐ Eq ity ing iat ies R C L te u ac co un es u ea rn s a sso c e om p an	1 24 8	( ) 6 8. 0	7 2. 1	6 4. 6	5 6. 1	2 6. 2
f l o Ne inc ina ia ion t t om e o n nc p era s	1 3. 8	( ) 8. 2	7. 8	6. 8	7. 4	47 4
Ne ing inc t o t p era om e	( ) 1 8 4.7	6. 4	( ) 0. 9	( ) 14 .7	( ) 175 .5	( ) 2 2. 3
ing inc fro ba k ing iv ity Op ‐ R C L t t era om e m n ac	6 24 9	1 0 5. 2	24 6. 6	2 25 1	4 8. 0	7 0 7. 0
l co Pe sts rso nn e	( ) 3 6 9. 1	( ) 6 4.7	( ) 6 5. 9	( ) 1 6 1. 6	( ) 7 6. 9	( ) 3 0 4. 0	) he de "pr for " r f lec 1 T sig ion nat ts o ma e he las fic f t he si ati t
2) f w h h: l co O ic No ing sts n‐r ec urr p ers on na	( ) 0 8 1 5.	( ) 0. 6	( ) 0. 1	( ) 9 4. 4	( ) 0. 1 7	( ) 6. 9 1	rec on o bu f B da i tio PI V i e P sõe ntr co n o en s,
Ge l a dm in ist ive rat sts ne ra co	( ) 1 6 3. 4	( ) 3 7.5	( ) 1. 3 4	( ) 3. 8 4	( ) 0. 8 4	( ) 1 6 6. 2	BP I G ão de Ac tiv e B PI G IF t he est o t os
d a De iat ion isa ion rt t p rec an mo	( ) 2 1. 9	( ) 5. 3	( ) 5. 6	( ) 5. 5	( ) 5. 5	( ) 2 1. 4	li da d n inc e i te et co nso om n
he d c Ov ts er a os	( ) 5 5 4. 3	( ) 1 0 7. 5	( ) 1 1 2. 8	( ) 2 1 0. 9	( ) 1 2 3. 1	( ) 4 9 1. 6	da it h I FRS les hat is 5 t acc or nce w ru , de d i he in fro n t net rec or co me m
f be fo d p Op ing it im irm is ion t ts era p ro re p a en an rov s	7 0. 6	( ) 2. 4	1 3 3. 8	14 2	( ) 75 1	2 15 4	dis nti d o ion he s. I n 2 01 6, rat t co nu e pe
f loa d e Re int st cov ery o ns, ere an xp en se s	2 9. 8	3. 5	17 2	2. 9	6. 2	1 3. 7	"N fro tio inc et cap ns om e m
los d p fo loa d g Im irm is ion t tee et p a en se s a n rov s r ns an ua ran s, n	( ) 25 2	( ) 4. 6	( ) 4. 0	( ) 1 6. 7	0. 1	( ) 3 3. 0	dis d o " a d nti ion rat co nu e pe s n "In bu b le t tri at ta co me o n on ‐
los d o he Im irm is ion t t et p a en se s a n r p rov s, n	0. 0	( ) 2. 1	( ) 0. 8	( ) 0. 6	3. 5	( ) 3 6. 5	l ling fro in ntr ter est co o s m
inc be fo inc Ne t e t om e re om ax	75 2	( ) 5. 6	14 6. 2	( ) 0. 1	( ) 6 5. 3	15 9. 7	" a dis nti d o ion lso rat co nu e pe s
Inc e t om ax	( ) 8 7.7	( ) 14 4	( ) 2 8. 3	1 6. 7	( ) 6 1. 6	( ) 3 7. 2	f B inc lu de d t he i bu tio FA ntr co n o ( 33 .€ a d 1 68 .8 M .€, 7.7 M n
inc fro inu ing ion Ne t nt t om e m co op era s	( ) 2. 1 5	( ) 2 0. 0	9 1 17	6. 1 5	( ) 2 6. 9 1	2 2. 1 5	ctiv ly ). res pe e
fro inc d isc inu d o ion Ne t t t om e m on e p era s	2 2.7	7.7	6. 3	4. 1	4. 6	3 9. 6 5	) fro lun mi ion 2 Co sts tar ter nat m v o y s
bu b le l l fro Inc i ing int inu ing ion ttr ta to tro sts nt t om e a no n‐c on ere m co op era s	( ) 0. 0		0. 0	( ) 0. 0	( ) 0. 0	( ) 0. 0	d e ly r d (on ly eti in ts a an ar rem en n
bu b le l l fro d d o Inc i ing int isc inu ion ttr ta to tro sts t t om e a no n‐c on ere m on e p era s						( ) 1 6 8. 8	) ga h he f he 20 16 ins it isio t t w rev n o l lec bo Co tiv La Ag nt e ur ree me
Ne inc t om e	1 0. 2	( ) 1 2. 3	1 24 3	2 0. 6	( ) 1 2 2. 3	3 1 3. 2	( do lec de ba l ho ). Ac Co tiv Tr AC T or o a ‐

Consolidated balance sheet in accordance with IAS / IFRS

Consolidated Balance Sheetat 31 Dec. 2017

With the assets and liabilities of BPI Gestão de Activos and BPI GIF reclassified to Non current Assets / Liabilities held for sale and discontinued operations (IFRS 5).

The consolidated balance sheet is shown, with the assets and liabilities of BPI Gestão de Activos e BPI GIF reclassified to the captions "Non current assets held for sale and discontinued operations" and "Non current liabilities held for sale and discontinued operations", respectively.

It should be noted that the sale of BPI Vida e Pensões took place in Dec.2017, so at the end of the year this entity no longer belonged to the consolidation perimeter of Banco BPI.

	for Pro ma	/ rda wi h IA In a S IFR S t cco nce
	de de si rin BP I G ão est con g	de nd BP I G ão Act ivo BP I G IF est s a
In M .€	ivo nd I G fu lly Act BP IF s a	las si fie d t nd lia bi liti fro ts a rec o a sse es m
	lid d ate con so	dis d o tin ion rat con ue pe s
	de z‐1 7	de z‐1 7
As set s
h a nd de l ba nks Cas sits at tra po cen	909 .9	909 .9
he dit De sits in stit uti at ot po r cr e on s	276 .7	276 .4
Loa d a dva dit in stit uti s to ns an nce cre on s	724 .7	724 .7
d a dva Loa Cu s to sto ns an nce me rs	21 658 .8	21 658 .8
l as he ld for din nd fai lue hro h p fit los Fin ia set tra at t anc s g a r va ug ro or s	300 .5	300 .5
l as la b le for le Fin ia vai set anc s a sa	3 8 75. 4	3 8 75. 4
ld t He rity inv atu est nts o m me
dg ing de riv ati He ves	12. 7	12. 7
in oci d c ies d jo int ly c lle d e nti tie Inv est nts ate tro me ass om pan an on s	794 .5	794 .5
Inv rtie est nt me pro pe s
he ld for le a nd dis d o No tin ion t as set rat n‐c urr en s sa con ue pe s		7.3
he ib le a Ot r ta ts ng sse	45. 3	45. 3
ib le a Int ts ang sse	42. 3	42. 3
Tax set as s	435 .7	435 .4
he Ot set r as s	563 .6	55 7.1
l as Tot set a s	29 640 .2	29 640 .2
bi liti har ho lde ' eq Lia d s uit es an e rs y
f ce l ba nks Re ntr sou rce s o a	1 9 95. 4	1 9 95. 4
l lia bi liti he ld for din Fin ia tra anc es g	170 .0	170 .0
f o he dit Re in stit uti t sou rce s o r cr e on s	1 9 82. 6	1 9 82. 6
f C d o he r d bts Re ust t sou rce s o om ers an e	20 783 .8	20 783 .8
bts De itie se cur s	237 .0	237 .0
hn ica l pr ovi sio Te c ns
l lia bi liti lat fer d a Fin ia ing to tra ts anc es re ns re sse	478 .0	478 .0
dg de He ing riv ati ves	69. 9	69. 9
lia bi liti he ld for le a nd dis d o No tin ion t rat n‐c urr en es sa con ue pe s		4.5
vis ion Pro s	64. 2	64. 2
lia bi liti Tax es	72. 3	70. 6
he bo rdi d de bt d p bo nd Ot icip ati nat art r su e an ng s	305 .1	305 .1
he r li bi liti Ot a es	658 .3	655 .5
har ho lde ' eq ibu b le t he har ho lde f B S uit PI ttr ta o t e rs y a s e rs o	2 8 23. 6	2 8 23. 6
No llin int tro sts n‐c on g ere
S har ho lde ' eq uit e rs y	2 8 23. 6	2 8 23. 6
l lia bi liti d s har ho lde ' eq uit Tot a es an e rs y	29 640 .2	29 640 .2

Consolidated balance sheet in accordance with IAS / IFRS

In M. €	3 1 De 1 7 c.	3 0 Se 1 7 p.	3 0 Ju 1 7 n.	3 1 Ma 1 7 r.	3 1 De 1 6 c.
As ts se
h a d de l ba ks Ca its at nt s n p os ce ra n	9 0 9. 9	1 2 0 9. 0	9 8 3. 4	1 3 0 0. 2	8 7 6. 6
its he d it ins itu ion De at ot t t p os r c re s	2 6. 7 4	2 2. 9 5	3 0 0. 0	2 2. 7 1	3 0 0. 2
d a dv d it ins itu ion Lo s t t t an s a n an ce o c re s	7 2 4. 7	8 2 0. 8	7 4 4. 6	7 8 1. 8	6 3 7. 6
d a dv Lo Cu s t sto an s a n an ce o me rs	2 1 6 5 8. 8	2 2 7 0 8. 0	2 2 8 1 9. 8	2 2 7 1 8. 4	2 2 7 3 5. 8
l a he l d fo d d a fa lue hro h p f los F ina ia ing ir v it o ts r t t t nc sse ra an a ug ro r s	3 0 0. 5	2 8 5 8. 1	2 4 0 9. 7	2 4 2 1. 4	2 1 9 7. 9
l a la b le fo le F ina ia i ts nc sse av a r s a	3 8 7 5. 4	3 7 3 2. 1	3 7 7 9. 3	3 8 1 6. 9	3 8 7 6. 4
l d t He ity inv atu tm ts o m r es en		1 4. 4	1 4. 4	1 6. 3	1 6. 3
dg de He ing iva ive t r s	1 2. 7	1 5. 2	2 0. 4	2 1. 1	2 5. 8
d c d ly l le d e Inv in iat ies j int it ies tm ts nt nt es en as so c e om p an an o co ro	7 9 4. 5	7 4 9. 3	6 7 5. 0	6 8 1. 6	1 7 5. 7
Inv ies tm t p ert es en ro p
he l d fo le d d isc inu d o ion No nt ts t at n‐c ur re as se r s a an on e p er s	7. 3				6 2 9 5. 9
he i b le Ot r ta et ng ass s	4 5. 3	4 1. 7	4 3. 7	4 8. 0	5 1. 0
b le Int i ts an g as se	4 2. 3	2 4. 3	2 4. 7	2 4. 6	2 5. 6
Ta ts x a sse	4 3 5. 4	4 4 2. 7	4 7 2. 8	4 4 7. 5	4 7 1. 8
he Ot ts r a sse	5 5 7. 1	4 1 0. 5	4 6 3. 5	4 2 6. 8	5 9 8. 0
l a To ta ts sse	2 9 6 4 0. 2	3 3 2 7 9. 0	3 2 7 5 1. 4	3 2 9 7 6. 7	3 8 2 8 4. 7
b l d s ha ho l de ' e L ia i it ies ity an re rs q u
f c l ba ks Re tra so urc es o en n	1 9 9 5. 4	2 1 4 4. 2	2 1 4 5. 4	1 9 9 9. 5	2 0 0 0. 0
fo ina ia l l ia b i l it ies he l d d ing F r t nc ra	0. 0 1 7	9. 0 1 7	8 8 1 5.	2 0 8. 7	2 2. 1 7
f o he d it ins itu ion Re t t t so urc es o r c re s	1 9 8 2. 6	1 8 1 6. 0	1 6 2 4. 1	1 8 3 4. 9	1 0 9 6. 4
f d o he de bts Re Cu sto t so urc es o me rs an r	2 0 7 8 3. 8	2 2 4 4 0. 1	2 2 3 3 5. 5	2 2 4 1 3. 5	2 1 9 6 7. 7
bts De it ies se cu r	2 3 7. 0	2 6 4. 1	2 6 8. 9	2 8 8. 6	5 0 6. 8
hn l p Te ica is ion c rov s		1 8 6 8. 3	1 9 2 3. 6	1 9 8 5. 2	2 0 4 8. 8
l l b l lat fe d a F ina ia ia i it ies ing to tr ts nc re an s rre sse	4 7 8. 0	4 9 2. 0	5 1 1. 4	5 2 5. 6	5 5 5. 4
dg de He ing iva ive t r s	6 9. 9	7 1. 9	7 8. 0	9 3. 0	9 7. 8
l b l he l fo le No ia i it ies d d d isc inu d o ion nt t at n‐c ur re r s a an on e p er s	4. 5				9 1. 4 5 5
is ion Pro v s	6 2 4.	6 6. 5	6 8. 8	6 9. 3	0. 2 7
l ia b i l it ies Ta x	0. 6 7	2 7 1.	6 7. 1	6 6. 5	2 2. 0
he bo d d de bt d p bo ds Ot ina ic ip ing te art at r s u r an n	3 0 5. 1	3 6 9. 6	3 7 3. 8	3 6 9. 9	6 9. 5
he l b l Ot ia i it ies r	6 5 5. 5	7 7 5. 3	6 0 6. 7	5 8 7. 3	7 7 7. 4
ha ho l de ' e bu b le he ha ho l de f S ity i B P I at tr ta to t re rs q s re rs o u	2 8 2 3. 6	2 7 2 0. 9	2 5 6 0. 6	2 5 3 3. 0	2 4 4 0. 5
l l No ing int tro ts n‐c on er es			1. 8	1. 8	4 6 8. 0
ha ho l de ' e S ity re rs q u	2 8 2 3. 6	2 7 2 0. 9	2 5 6 2. 3	2 5 3 4. 7	2 9 0 8. 5
l l b l ha ho l ' e ia i it ies d s de ity To ta an re rs q u	2 9 6 4 0. 2	3 3 2 9. 0 7	3 2 1. 4 7 5	3 2 9 6. 7 7	3 8 2 8 4. 7

Profitability, efficiency, credit quality and solvency (IAS / IFRS)

Efficiency, efficiency, credit quality and solvency

According to Bank of Portugal's Instruction no. 23/2011

	3 1 D 1 6 ec	3 1 D 17 ec d ort as rep e	l. t he im f t he 3 1 D 17 act ec ex c p o le f d 2 % BF A a sa o n de l da l g i ion ita in t co nso , ca p a on he le BP I V i da d e d ina t xtr sa an ao r ry im A act t BF p s a
/ Op ing inc fro ba k ing iv ity d r lts f e ity d bs i d iar ies AT A t t te era om e m n ac an es u o q u ac co un su	1) 8 % 1.	9 % 1.	2. 8 %
/ f it be fo ion d inc i bu b le l l ing int Pro AT A tax at ttr ta to tro sts re an om e a no n‐c on ere	1) % 1. 3	0. 3 %	2 % 1.
f be fo d bu b le l l / a ha ho l de ' e ( lu d Pro it ion inc i ing int ity inc ing tax at ttr ta to tro sts re an om e a no n‐c on ere ve rag e s re rs q u ) l l ing int tro sts no n‐c on ere	1) 1 8. 8 %	3. 7 %	14 .7 %
2 l co / fro ba k d r lts f e d s bs d Pe Op ing inc ing iv ity ity i iar ies sts t t te rso nn e era om e m n ac an es u o q u ac co un u	1) % 4 0. 6	% 4 2. 1	% 2 8. 9
2 / he d c ing inc fro ba k ing iv ity d r lts f e ity d s bs i d iar ies Ov Op ost t t te er a s era om e m n ac an es u o q u ac co un u	1) 6 7. 1 %	71 8 %	4 9. 2 %
/ fo ha da do bt fu l loa loa fo l (g ) Loa in 9 0 io t ort ns arr ea rs r m ore n y s + u ns n p ros s	3. 2 %	2.5 %
/ fo ha da do bt fu l loa f a lat d loa loa fo l ( ) Loa in 9 0 im irm io t t o ts ort t ns arr ea rs r m ore n y s + u ns, ne ccu mu e n p a en n p ne	0. 1 %	‐0. 1 %
3 (g ) Cre d it a is k a % f to l loa t r ta s o ns ros s	% 3. 9	2. 9 %
3, n d k f a lat d loa f to l loa ( ) Cre it a is im irm % t r et ts ta t o ccu mu e n p a en as o ns ne	0. 8 %	0. 3 %
4 d loa % f to l loa (g ) Re str uct ta ure ns as o ns ros s	6. 5 %	5. 0 %
4 f to (g ) Re d loa inc lu de d in d it a is k a % l loa str uct t t r ta ure ns no cre s o ns ros s	4. 8 %	3. 8 %
l ca ita l ra io To ta t p	5) 11 % .4	6) 14 6 %
T ier I r io at	5) 11 .4 %	6) 1 3. 2 %
Co T ier I r io at re	5) % 11 .4	6) 1 3. 2 %
( ) de its io Loa t to t ns ne p os ra	0 6 % 1	0 % 1 5

1) The designation "proforma" reflects the reclassi fication of BPI Vida e Pensões, BPI Gestão de Activos and BPI GIF contribution to consolidated net income in conformity with IFRS 5 rules, that is recorded in the net income from discontinued operations.

2) Excluding early‐retirement costs and changes to the plan (personnel costs).

3) The credit at risk is the sum of: (1) the total amount outstanding on a loan in respect of which there are instalments of principal or interest in arrears for 90 days or more; (2) the total amount outstanding on loans which have been restructured, after having been in arrears for a period of 90 days or more, without adequate reinforcement of guarantees (these should be sufficient to cover the full amount of the outstanding principal and interest) or full payment of interest and other charges in arrears; (3) the total value of loans with instalments of principal and accrued interest in arrears for less than 90 days but in respect of which there is evidence to justi fy their classi fication as credit‐at‐risk, namely the debtor's bankruptcy or winding up.

4) According to Bank of Portugal Instruction 32/2013.

5) According to CRD IV/CRR phasing in rules for 2016.

6) According to CRD IV/CRR phasing in rules for 2017.

Consolidated Income Statement proforma

Proforma considering BPI Vida e Pensões, BPI Gestão de Activos and BPI GIF fully consolidated.

Consolidated Income Statement

						f r by In in in 7 4 M €: t + cr ea se o ec ur r g ne co m e
		2 0 1 7			2 0 6 1	l ( ) Ac iv i in Po 3 3 M € Yo Y t ty tu + r g a
€ In M	As	No n	lu d ing Ex c no n	As	lu d ing Ex c no n	de (‐ ) Re in 5. 3 % Yo Y 2 5 M € ts  cu rr g co s cr ea se ;
	d te re p or	1) re cu rr.	1) ing re cu rr	d te re p or	1) ing re cu rr	l de fro To im irm 6 9 M € in 2 0 1 6 2 5 ta ts to  p a en cr ea se m
l m F ina ia in R C L nc ar g ‐	4 0 7		4 0 7	4 1 0	4 1 0	in M € 2 0 1 7
fro Inc i ins R C L ty tru ts om e m eq u me n ‐	7		7	9	9	fro f f ies lo io ly i in d Re t te  co ve r m an s p re v us w r n o cr ea se
iss ion inc C Ne R L t c om m om e ‐	2 9 7		2 9 7	2 3 7	2 3 7	fro ( ) 1 4 M € in 2 0 1 6 3 0 M € in 2 0 1 7 1 6 M € to + m
i d r l Eq R C L ty te ts ac co un es u u ‐	1 2 5	( ) 1 1 9	2 4 4	2 6	2 6	( ) Co iss io in 8. 9 % 2 4 M €  + m m ns cr ea se y oy
f l o Ne inc ina ia ion t t om e o n nc p er a s	1 5		1 5	4 9	4 9	f fro f l o by De in i in ia io 3 4 M € ts t  cr ea se p ro m an c p er a ns
Ne ing inc t o t p er a om e	( ) 1 8 6	( ) 1 6 8	( ) 1 8	( ) 2 4	( ) 2 4
ing inc fro ba k ing iv i Op R C L t t ty er a om e m n ac ‐	6 6 4	( ) 2 8 7	9 5 1	7 4 3	7 4 3	( ) ke in fr ica ba ks S A 4 0 M € Yo Y ta + s n n
he d c Ov ts er a os	( ) 5 6 3	( ) 1 0 7	( ) 4 5 6	( ) 4 9 8	( ) 4 8 1	bu f he f Co i io B F A in 2 0 0 M € tr t to t t  n n o ne co m e o
Op ing f i be fo im irm d t t ts er a p ro re p a en an is ion p ro s v	1 0 1	( ) 3 9 4	4 9 5	2 4 5	2 6 2	( ). 3 8 M € + oy y
f loa in d e Re te t a co ve ry o ns res n xp en se s ,	3 0		3 0	1 4	1 4	) ing ite in 2 0 1 No 1 7: n r ec ur r ms h v lun d e f Co it ina ion ire 1 0 7 M. € sts ta te t ret nts
los d p fo loa d Im irm is ion t p a en se s a n ro v s r ns an te g ua ra n es	( ) 2 5		( ) 2 5	( ) 3 3	( ) 3 3	ly w o ry rm s a n ar me o ‐ be fo d fte 7 8 M. € a tax r ta re es an xe s. l g f fte ( be fo ) h t he le Ca ita ins 9 M. € a 8 M. € it r t tax p a o ax es re es sa w ‐
los d o he Im irm is ion t t p a en se s a n r p ro s v	0		0	( ) 3 6	( ) 3 6	f da õe B P I V i Pe o e ns s
inc be fo inc Ne t ta om e re om e x	1 0 6	( ) 3 9 4	5 0 0	1 8 9	2 0 6	f h t he le f f d Ne ive im 2 1 2 M. € w it 2 % B F A a at t o g p ac sa o o n ‐
Inc ta om e x	( ) 9 6	5	( ) 1 0 1	( ) 4 5	( ) 4 9	( de l i da ion de d in ing inc d 1 7 6 M. € r 3 6 t t o t co ns o ec or ne p era om e a n ). € in M. tax es
inc fro inu ing ion Ne t t t om e m co n o p er a s	1 0	( ) 3 8 9	3 9 9	1 4 4	1 5 7	f ‐ d ina im 1 0 €, h ic h inc lu de he Ext B F A o 7 M. ts at s t rao r ry p ac w ‐
fro d d o Ne inc isc inu ion t t t om e m on e p er a s				3 3 8	3 3 8	d fro he f t he ke im im it ion in B F A in est ate t t st p ac m re co g n o a da h (‐ ) it I A S 2 9 6 9 M. € ac co r nc e w
bu b le l l Inc i ing in t tr ta to tro te ts om e a n on ‐co n res	( ) 0		( ) 0	( ) 1 6 9	( ) 1 6 9	h e ly de du d by No ing ite in 2 0 1 6: it ire sts ret nts cte n r ec ur r ms co ar me w ,
inc Ne t om e	1 0	( ) 3 8 9	3 9 9	3 1 3	3 2 5	he fro he f t he f be fo d in is ion A C T, 1 6. 8 M. € 1 2 t t tax g a m re o o re es an v fte M. € a r t ax es

Quarterly Consolidated Income Statement proforma

Proforma considering BPI Vida e Pensões, BPI Gestão de Activos and BPI GIF fully consolidated.

	20 17	4Q 17	3Q 17	2Q 17	1Q 17	20 16
l m F ina ia in nc arg na rro w se ns e	3 6 7. 7	9 3. 8	9 1. 5	9 0. 1	9 2. 3	3 6 4. 2
hn l re lt o f Te ica ins tra cts su ura nc e c on c	1 8. 6	7. 1	4. 1	3. 8	3. 6	2 4. 6
lat d c Ne is ion ing ise t c to ort t om m s r e am os	2 0. 8	5. 4	5. 1	4. 6	5. 8	2 1. 2
ina ia l m in F R C L nc arg ‐	4 0 7. 1	1 0 6. 3	1 0 0. 7	9 8. 5	1 0 1. 6	4 1 0. 0
fro Inc ity ins C L R tru nts om e m eq u me ‐	6. 5	0. 1	0. 1	6. 3	0. 1	8. 5
Ne iss ion inc R C L t c om m om e ‐	2 9 7. 1	8 1. 4	7 7. 4	7 2. 2	6 6. 1	2 7 2. 8
d r lts ( d c ) ‐ Eq ity ing iat ies R C L te ac co un es ea rn s a sso c e om p an u u	1 2 4. 8	( ) 6 8. 0	7 2. 1	6 4. 6	5 6. 1	2 6. 2
inc f ina ia l o ion Ne t at om e o n nc p er s	1 4. 5	( ) 8. 2	7. 9	7. 1	7. 7	4 8. 9
ing inc Ne t o t p era om e	( ) 8 6. 3 1	6. 0	( ) 2 1.	( ) 0 1 5.	( ) 6. 0 1 7	( ) 2 3. 8
fro ba k Op ing inc ing iv ity R C L t t era om e m n ac ‐	6 6 3. 7	1 1 7. 5	2 5 6. 9	2 3 3. 6	5 5. 6	7 4 2. 7
l co Pe sts rso nn e	( ) 3 7 4. 9	( ) 6 5. 9	( ) 6 7. 0	( ) 1 6 4. 1	( ) 7 7. 9	( ) 3 0 8. 0
1) f w h ic h: ing l co O No sts n‐r ec ur r p ers on na	( ) 1 0 6. 9	( ) 0. 6	0. 0	( ) 9 5. 6	( ) 1 0. 7	( ) 1 6. 8
Ge l a dm in ist ive rat sts ne ra co	( ) 6 8 1 5.	( ) 3 8. 1	( ) 2. 0 4	( ) 3 4 4.	( ) 4 1. 4	( ) 6 8. 6 1
iat ion d a isa ion De rt t p rec an mo	( ) 2 1. 9	( ) 3 5.	( ) 6 5.	( ) 5. 5	( ) 5. 5	( ) 2 1. 4
he d c Ov ts er a os	( ) 5 6 2. 6	( ) 1 0 9. 3	( ) 1 1 4. 5	( ) 2 1 3. 9	( ) 1 2 4. 7	( ) 4 9 7. 9
ing f it be fo im irm d p is ion Op t ts era p ro re p a en an rov s	1 0 1. 1	8. 2	1 4 2. 4	1 9. 7	( ) 6 9. 1	2 4 4. 8
f loa int d e Re st co ve ry o ns ere an xp en se s ,	2 9. 8	3. 5	1 7. 2	2. 9	6. 2	1 3. 7
fo irm los d p is ion loa d g Im t te t p a en se s a n rov s r ns an ua ran es ne ,	( ) 2 2 5.	( ) 6 4.	( ) 0 4.	( ) 1 6. 7	0. 1	( ) 3 3. 0
los d o he Im irm is ion t t t p a en se s a n r p rov s, ne	0. 0	( ) 2. 1	( ) 0. 8	( ) 0. 6	3. 5	( ) 3 6. 5
be fo Ne inc inc t e t om e re om ax	1 0 5. 8	4. 9	1 5 4. 8	5. 3	( ) 5 9. 3	1 8 9. 0
Inc e t om ax	( ) 9 5. 5	( ) 1 7. 2	( ) 3 0. 5	1 5. 3	( ) 6 3. 1	( ) 4 4. 7
inc fro inu ing ion Ne t nt at om e m co op er s	0. 2 1	( ) 2. 3 1	2 3 1 4.	2 0. 6	( ) 2 2. 3 1	1 4 4. 4
fro d d o Ne inc isc inu ion t t at om e m on e p er s						3 3 7. 7
bu b le l l fro Inc i ing int inu ing ion ttr ta to tro sts nt t om e a no n‐c on ere m co op era s	( ) 0. 0		0. 0	( ) 0. 0	( ) 0. 0	( ) 0. 0
bu b le l l fro d d o Inc i ing int isc inu ion ttr ta to tro sts t t om e a no n‐c on ere m on e p era s						( ) 1 6 8. 8
inc Ne t om e	1 0. 2	( ) 1 2. 3	1 2 4. 3	2 0. 6	( ) 1 2 2. 3	3 1 3. 2

Captions reclassified according to the format used by CaixaBank (BPI's consolidating entity). The underlying accounting criteria were not affected by the change in the format adopted.

1) The designation "proforma" reflects the restatement of BFA's contribution to consolidated net income in conformity with IFRS 5 rules, that is recorded in the net income from discontinued operations.

2) Costs from voluntary terminations and early retirements and (only in 2016) gains with the revision of the Collective Labour Agreement (Acordo Colectivo de Trabalho ‐ ACT).

Profitability, efficiency, credit quality and solvency (proforma)

Proforma considering BPI Vida e Pensões, BPI Gestão de Activos and BPI GIF fully consolidated.

According to Bank of Portugal's Instruction no. 23/2011

	3 1 De 1 6 c. d ort as re p e	3 1 De 1 7 c. d te as re p or	l. t he im f t he le 3 1 De 1 7 e t o c. xc p ac sa f d de l i da ion 2 % B F A a t o n co ns o , ita l g in he le i da d B P I V t ca p a on sa an d ina im B F A tra ts t ex or ry p ac a
/ fro ba k d r lts f e d bs d Op ing inc ing iv ity ity i iar ies A T A at t te er om e m n ac an es u o q u ac co un su	1. 9 %	2. 0 %	2. 9 %
/ f be fo d bu b le l l Pro it ion inc i ing int A T A tax at ttr ta to tro ts re an om e a no n‐c on er es	1. 3 %	0. 3 %	1. 2 %
/ f be fo d bu b le l l ha ho l de ' e Pro it ion inc i ing int ity tax at ttr ta to tro ts re an om e a no n‐c on er es av er ag e s re rs q u ( lu d l l ) inc ing ing int tro ts no n‐c on er es	1 9. 0 %	4. 0 %	1 5. 0 %
1 l co / fro ba k d r lts f e d s bs d Pe Op ing inc ing iv ity ity i iar ies sts at t te rso nn e er om e m n ac an es u o q u ac co un u	3 9. 2 %	4 0. 4 %	2 8. 2 %
1 he / fro ba k lts f e bs Ov d c Op ing inc ing iv ity d r ity d s i d iar ies ts at t te er a os er om e m n ac an es u o q u ac co un u	6 8 % 4.	6 8. % 7	9 % 4 7.
/ in fo ha da do bt fu l loa loa fo l io ( ) Lo 9 0 e t ort s + an s arr ea rs r m or n y u ns n p g ros s	% 3. 2	% 2. 5
/ fo ha da do bt fu l loa f a lat d loa loa Lo in 9 0 im irm e t t o ts s + an s arr ea rs r m or n y u ns ne ccu mu e n p a en n , fo l io ( ) ort t p ne	% 0. 1	% ‐0. 1
2 d k a f t l loa ( ) Cr it a is % t r ot e s o a ns g ros s	3. 9 %	2. 9 %
2, d k f a lat d loa f t l loa ( ) Cr it a is im irm % t r t o ts ot t e ne ccu mu e n p a en as o a ns ne	0. 8 %	0. 3 %
3 d loa f t l loa ( ) Re % str tu ot uc re ns as o a ns g ros s	6. % 5	0 % 5.
3 d loa lu de d d k a f t l loa ( ) Re inc in it a is % str tu t t r ot uc re ns no cre s o a ns g ros s	4. 8 %	3. 8 %
l ca l ra To ita io ta t p	4) 1 1. 4 %	5) 1 4. 6 %
T ier I ra io t	4) 1 1. 4 %	5) 1 3. 2 %
Co ier io T I ra t re	4) % 1 1. 4	5) 3. 2 % 1
( ) Lo de its io t to t an s ne p os ra	1 0 6 %	1 0 % 5

1) Excluding early‐retirement costs and changes to the plan (personnel costs).

2) The credit at risk is the sum of: (1) the total amount outstanding on a loan in respect of which there are instalments of principal or interest in arrears for 90 days or more; (2) the total amount outstanding on loans which have been restructured, after having been in arrears for a period of 90 days or more, without adequate reinforcement of guarantees (these should be sufficient to cover the full amount of the outstanding principal and interest) or full payment of interest and other charges in arrears; (3) the total value of loans with instalments of principal and accrued interest in arrears for less than 90 days but in respect of which there is evidence to justi fy their classi fication as credit‐at‐risk, namely the debtor's bankruptcy or winding up.

3) According to Bank of Portugal Instruction 32/2013.

4) According to CRD IV/CRR phasing in rules for 2016.

5) According to CRD IV/CRR phasing in rules for 2017.

Consolidated Income Statement – Reconciliation with the structure previously used

Captions restated (RST) according to the format used by CaixaBank (BPI's consolidating entity). The underlying accounting criteria were not affected by the change in the format adopted

n s q a r e r e a r n n g s r e e a s e ac co r rm a se n co ns o en u u l m (na ) F ina ia in nc arg rro w sen se ina ia l m in (na ) F nc arg rro w sen se l ks Gr in o it in oss m arg n u n hn l re lt o f Te ica ins ntr act c su ura nce co s fro ity ins Inc tru nts om e m eq u me iss ion lat ing ise d c Ne t c to ort ost om m s r e am lat d c Ne iss ion ing ise t c to ort ost om m s re am ina ia l m in F ‐ R CL nc arg l m F ina ia in nc arg fro Inc ity ins ‐ R CL tru nts om e m eq u me hn ica l re lt o f ins Te ntr act c su ura nce co s iss ion inc Ne RC L t c om m om e ‐ Ne iss ion inc t c om m om e d r lts Eq ity ‐ R CL te u ac co un esu inc f ina ia l op ion Ne t t om e o n nc era s inc f ina ia l o ion Ne t t om e o n nc p era s Ne ing inc t o t p era om e Ne ing inc t o t p era om e fro ba k Op ing inc ing iv ity t t era om e m n ac fro ba k Op ing inc ing iv ity ‐ R CL t t era om e m n ac l co Pe sts rso nn e l co Pe sts rso nn e 1) f w h ic h: ing l co O sts no n‐r ec urr p ers on ne 1) f w h h: l co O ic ing sts no n‐r ec urr p ers on ne l a Ge dm in istr ive at sts ne ra co Ge l a dm in ist ive rat sts ne ra co iat ion d a isa ion De rt t p rec an mo d a De iat ion isa ion rt t p rec an mo he d c Ov ts er a os he d c Ov ts er a os f for Op ing it be im irm d p is ion t ts era p ro e p a en an rov s Op ing f it be for im irm d p is ion t ts era p ro e p a en an rov s f loa int d e Re st a cov ery o ns, ere n xp en ses f loa d e Re int st cov ery o ns, ere an xp en ses los d p for loa d g Im irm is ion t tee et p a en ses an rov s ns an ua ran s, n Im irm los d p is ion for loa d g t tee et p a en ses an rov s ns an ua ran s, n irm los d o he is ion Im t t et p a en ses an r p rov s, n los d o he Im irm is ion t t et p a en ses an r p rov s, n inc be for inc Ne t e t om e e om ax be for Ne inc inc t e t om e e om ax Inc e t om ax Inc e t om ax (eq ) ing f a iat d c ies ity ho d Ea t rn s o sso c e om p an u me fro Ne inc inu ing ion t nt t om e m co op era s fro Ne inc inu ing ion t nt t om e m co op era s fro Ne inc d isc inu d o ion t t t om e m on e p era s fro Ne inc d isc inu d o ion t t t om e m on e p era s bu l l fro Inc i ing int inu ing ion ttr t. t ntr sts nt t om e a o n on ‐co o ere m co op era s i but l l ing int fro inu ing ion Inc ttr . to tro sts nt t om e a no n‐c on ere m co op era s bu l l fro d d o Inc i ing int isc inu ion ttr t. t ntr sts t t om e a o n on ‐co o ere m on e p era s but l l fro d d o Inc i ing int isc inu ion ttr . to tro sts t t om e a no n‐c on ere m on e p era s	i l d I S t t t – t t n c o m e a e m e n s r u c u r e p r e v o u s y u s e	d d i h l f I S 1 2 0 1 7 t t t – t t t t n c o m e a e m e n s r u c u r e a o p e n s a
	( ) l l i 1 2 0 1 7 i t t t	( ) d ing he fo d by ixa k, 's l i da ing i Ca Ba B P I to t t u t t ty
Ne t In co me		Ne t In co me

1) Costs from voluntary terminations and early retirements.

ALTERNATIVE PERFORMANCE MEASURES

In addition to the financial information prepared in accordance with the International Financial Reporting Standards (IFRS), BPI uses ^a number of indicators in the analysis of the performance and financial position which are classified as Alternative Performance Indicators (APM) in accordance with the guidelines set by the European Securities and Markets Authority or ESMA about the disclosure of Alternative Performance Measures by entities published on 5 October 2015 ( ESMA / 2015/ 1415). These indicators, which were not audited, are considered additional disclosures and in no case replace the financial information prepared in accordance with the IFRS. In addition, the way Banco BPI defined and calculated these indicators may differ from the way similar indicators are computed by other companies and may therefore not be comparable. The following is ^a list of alternative performance indicators used by BPI, together with ^a reconciliation between certain management indicators and the consolidated financial statements and their notes prepared in accordance with IFRS.

EARNINGS, EFFICIENCY AND PROFITABILITY INDICATORS

Financial margin (RCL) = Financial margin (narrow sense) + Technical result of insurance contracts + Commissions relating to amortised cost

Net commissions (RCL) = Net commissions + Gross margin on unit links

Operating income from banking activity (RCL) = Financial margin (RCL) + Income from equity instruments (RCL) + Net commissions income (RCL) + Equity accounted results (RCL) + Net income on financial operations + Net operating income

Commercial banking income = Financial margin (RCL) + Income from equity instruments (RCL) + Net commissions income (RCL) + Equity accounted results (RCL) excluding the contribution of stakes in African banks

Overhead costs ⁼ Personnel costs + General administrative expenses + Depreciation and amortisation

Adjusted overhead costs ⁼ Personnel costs excluding cost with early retirements and voluntary terminations and (only in 2016) gains with the revision of the Collective Labour Agreement (ACT) + General administrative expenses + Depreciation and amortisation

Operating profit before impairments and provisions (RCL) ⁼ Operating income from banking activity (RCL) ‐ Overhead costs

Net income before income tax (RCL) = Operating profit (RCL) + Recovery of loans, interest and expenses ‐ Impairment losses and provisions for loans and guarantees, net ‐ Impairment losses and other provisions, net

Cost‐to‐income ratio (efficiency ratio) 1) = Overhead costs / Operating income from banking activity (RCL)

Adjusted overhead costs‐to‐commercial banking income 1) = Overhead costs, excluding costs with early‐retirements and voluntary terminations and (only in 2016) gains with the revision of the Collective Labour Agreement (ACT) / Commercial banking income

Return on Equity (ROE) 1) ⁼Net income for the period / Average value in the period of shareholders' equity attributable to BPI shareholders after deduction of the fair value reserve (net of deferred taxes) related to available‐for‐sale financial assets

Return on Tangible Equity (ROTE) 1) ⁼Net income for the period / Average value in the period of shareholders' equity attributable to BPI shareholders after deduction of intangible net assets and the revaluation reserve (after deferred taxes).

Return on Assets (ROA) 1) ⁼(Net income attributable to BPI shareholders + Income attributable to non‐controlling interests ‐ preference shares dividends paid / Average value in the period of net total assets

Intermediation margin = Loan portfolio average interest rate ‐ Deposits average interest rate

Note:

The term "RCL" or "Reclassified captions" identifies income and costs captions that have been reclassified in this earnings release, and repositioned in the structure of the income statement according to the format used by CaixaBank (BPI's consolidating entity). The underlying accounting criteria were not affected by the change in the format adopted.

1) Ratio referring to the last 12 months, except when indicated otherwise.

The ratio can be computed for the cumulative period since the beginning of the year, in annualised terms, the cases in which it will be clearly marked.

ALTERNATIVE PERFORMANCE MEASURES

BALANCE SHEET AND FUNDING INDICATORS

On‐balance sheet Customer resources = Deposits + Capitalisation insurance and others

Note: The amount of on‐balance sheet Customer resources is not deducted from the applications of off‐balance sheets products (mutual funds and pension plans) in on‐balance sheet products.

Being:

Deposits = Sight deposits and other + Time and savings deposits + Accrued interest + Bonds placed with customers (Fixed / variable rate bonds and structured products placed with Customers + Deposits certificates + Subordinated bonds placed with Customers)

Capitalisation insurance and others = Unit links insurance capitalisation + "Aforro" capitalisation insurance and others (Technical provisions + Guaranteed rate and guaranteed retirement insurance capitalisation) + Participating units in consolidated mutual funds

Assets under management = Mutual funds + Pension plans

Note: Amounts deducted from participating units in the Group banks' portfolios and from off‐balance sheet products investments (mutual funds and pension plans) in other off‐balance sheet products.

Mutual funds = Unit trust funds + Real estate investment funds + Retirement‐savings and equity‐savings plans (PPR and PPA) + Hedge funds + Funds assets under BPI Suisse management + Third‐party unit trust funds placed with Customers

Pension plans = pension plans under BPI management (includes pension plans of BPI Group)

Subscriptions in public offerings = Customers subscriptions in third parties' public offerings

Total Customer Resources = On‐balance sheet Customer Resources + Assets under management ⁺ Subscriptions in public offerings

Loan‐to‐deposit ratio = Net loans to Customers / Customer deposits

ASSET QUALITY INDICATORS

Impairments for loans and guarantees as % of the loan portfolio 1)= Impairment losses and provisions for loans and guarantees, net / Average value in the period of the performing loan portfolio

Cost of credit risk as % of the loan portfolio 1)= (Impairments and provisions for loans and guarantees, net ‐ Recovery of loans, interest and expenses) / Average value in the period of the performing loan portfolio

Performing Loans portfolio = Gross customer loans ‐ (Overdue loans and interest + Receivable interests and other)

Credit at risk ratio (consolidation perimeter IAS / IFRS) = Credit at risk / Gross loan portfolio

Note: the consolidated financial information prepared in accordance with IAS / IFRS rules is used in the calculation of the indicator.

For the disclosure of the indicators defined in Bank of Portugal Instruction 16/2004, the Bank of Portugal's supervision perimeter is considered in their calculation, which, in the case of BPI, implies that BPI Vida e Pensões be recognised through the equity method (whereas under IAS / IFRS accounting rules that company is fully consolidated).

Coverage of credit at risk by impairments = (Loan impairments + Impairments and provisions for guarantees and commitments) / Credit at risk

Coverage of credit at risk by impairments and associated collateral = (Loan impairments + Impairments and provisions for guarantees and commitments + Collateral associated to credit ) / Credit at risk

Non performing loans ratio = Non performing loans (CaixaBank criteria) / (Gross customer loans + guarantees)

Non performing loans coverage ratio = (Loans impairments + Impairments and provisions for guarantees and commitments) / Non performing loans (CaixaBank criteria)

Coverage of non performing loans by impairments and associated collateral = (Loans impairments + Impairments and provisions for guarantees and commitments + Collateral associated to credit) / Non performing loans (CaixaBank criteria)

Impairments cover of foreclosed properties = Impairments for foreclosed properties / Gross value of foreclosed properties

1)Ratio referring to the last 12 months, except when indicated otherwise.

2)The ratio can be computed for the cumulative period since the beginning of the year or for the quarter, both in annualised terms, the cases in which it will be clearly marked.

ALTERNATIVE PERFORMANCE MEASURES

MARKET INDICATORS

Earnings per share (EPS) = Net income / Weighted average no. of shares in the period (basic or diluted)

The earnings per shares (basic or diluted) is calculated in accordance with IAS 33 ‐ Earnings per share.

Cash‐flow after taxes (CF per share or CFPS) = Cash‐flow after taxes / Weighted average no. of shares in the period.

Note: the denominator corresponds to the weighted average no. of shares used in the calculation of earnings per share (basic or diluted).

Book value per share (BV per share or BVPS) ⁼Shareholders' equity attributable to BPI shareholders / No. of shares at the end of the period

Note: the denominator corresponds to the outstanding number of shares after deducting the treasury stocks portfolio and is adjusted for capital increases, whether by incorporation of reserves (bonus issue) or subscription reserved for shareholders (rights issue), amongst other events, in a similar way to the calculation of earnings per share.

Price to earnings ratio (PER) = Stock market share price / Earnings per share (EPS)

Price to cash flow (PCH) = Stock market share price / Cash‐flow after taxes (CFPS)

Price to book value (PBV) = Stock market share price / Book value per share (BVPS)

Earnings yield = Earnings per share (EPS) in the year / Stock market share price (at beginning or end of the year)

Dividend yield = Dividend per share relating to the year / Stock market share price (at beginning or end of the year)

Investor Relations

Tel. +351 226 073 337E-mail: investor.relations@bancobpi.pt Website: www.ir.bpi.pt

Ricardo Araújo (IR Officer) Tel: +351 226 073 119E-mail: luis.ricardo.araujo@bancobpi.pt

Banco BPI, S.A. Publicly held company Head Office: Rua Tenente Valadim, no. 284, Porto, Portugal Share capital: € 1 293 063 324.98 Registered in Oporto C.R.C. and corporate body no. 501 214 534