Banco Comercial Portugues

Earnings Release • Feb 3, 2020

2019

Banco BPI

Consolidated results

3 February 2020

"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 or financial accretion are not intended to mean that future performance 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 of Valores Mobiliários (CMVM) (Autoridade Portuguesa do Mercado of 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.

BPI consolidated results in 2019

i i l N P t t e n c o m e n o r u g a d i h l i d d t t a n n e c o n s o a e	f l f i i 2 3 1 € i 2 0 1 9, 6 % R P M t t t t  e c u r r e n n e p r o n o r u g a o n u p y o y ( ) y 1 l d d f f (‐ ) C i i 3 2 8 M € i 2 0 1 9 3 3 % t t t  o n s o a e n e p r o o n o y
h i G t t r o w n c u s o m e r d l r e s o r c e s a n o a n s u	( ) d i i d C 1 5 9 9 M € 7. 6 % t t +  u s o m e r e p o s s n c r e a s e y o y f l d ( ) i i 0 3 3 € % i % L 1 M 4. 4 L 4. 7 t t  + o a n p o r o o n c r e a s e y o y o a n s o c o m p a n e s u p y o y ;
h l i i H t t a s s e q a g u y	h l d f f l ( ) d l h t h 2 2 € i i i B P I 1 M N P L 4 t t t t t t  s o o n o n‐ p e r o r m n g o a n s a n r e a e s a e a s s e s n e q u a r e r, w a i f 2 4 M € t p r e‐ a x g a n o f i i ( d f i i i ) f d d N N P E E B A 2. 5 % i D 2 0 1 9, 1. 0 t t  o n‐ p e r o r m n g e x p o s u r e s r a o e n o n o n e c. e c r e a s e p. p. y o y – ( ) b i i d l l l f f i f C N P E 1 2 4 % t t  o e r a e m p a r m e n s a n c o a e r a o n o n‐ p e r o r m n e p o s r e s o v g y g x u
i l i i S t t t r o n g c a p a s a o n	l ( f l l l ) f f l l f i i d d % % d i % C C E T 1 1 3. 4 T 1 1 4. 9 1 6. 6 t t t t t  a p a r a o s o a e o o a n o a c a p a o u y : , l l l d d l f i 8. % F 4 t  u y o a e e v e r a g e r a o o l f d f f d d d d b f d i i i i i i €, i 3 6 % P B B P I B D 1 1 7 M t t t t  r o p o s a o a n c o o a r o r e c o r s o r a v e n s r u o n o c o r r e s p o n n g o a f l d d f i i i t t t t t p a y o u r a o o c o n s o a e n e p r o

(1) When comparing the consolidated net profit with 2018, it should be taken into account that significant positive non‐recurrent impacts were booked in 2018 (+178 M.€) in the Activity in Portugal.

Consolidated net profit of 328 M.€ in 2019

R t t e c u r r e n n e	In M €	De 1 8 c	De 1 9 c	 %
f h i i t t p r o n e	iv i in l Ac Po t ty tu r g a
i i i t t c v y n l P t o r u a	f i Re t t t cu rre n ne p ro	2 1 8. 3	2 3 1. 3	% 6
g 6 % p	1) im No t ts n‐ re cu rre n p ac	1 8. 0 7	( ) 1. 1
2 3 1 M € o	f l Ne i in Po t t tu p ro r g a	3 9 6. 3	2 3 0. 2	‐4 2 %
	bu B F A i io tr t co n n	7 3. 2	7 8. 9	8 %
	bu B C I c i io tr t on n	2 1. 1	1 8. 7	% ‐1 1
	l d d f C i i t t t o ns o a e ne p ro	9 0. 6 4	3 2 9 7.	‐3 3 %

	 y o y
2) i l b k i i C  o m m e r c a a n n g g r o s s n c o m e	8. 3 M € +
f i i i l d I t t  m p a r m e n o n n a n c a a s s e s a n f iv d l i t a s s e s r e c e e r o m o a n r e c o v e r e s	7. 2 M € +
h O t  e r	‐2 4 € M
	1 3. 0 M € +

l i R R O T E P t t e c u r r e n n o r u g a
	2 0 1 8	2 0 9 1
O R R T E t e c u r r e n	8. 8 %	8. 9 %

1) Activity in Portugal: non‐recurrent impacts in 2018 include gains of 193.1 M.€ from the sale of subsidiaries and the stake in Viacer.

2) Net interest income, net fee and commission income, dividend income and equity accounted income.

Loan portfolio increased 4.4% yoy

Loans to customers by segments

f l G i i M € t r o s s p o r o o, n	D 1 8 e c	D 1 9 e c	Y Y o
i d i i d l I. L t o a n s o n v u a s	1 2 8 5 5	1 2 9 9 7	3. 4 %
l M t o r g a g e o a n s	1 1 1 7 1	1 1 3 7 1	% 1. 8
h l d d l O i i i t t e r o a n s o n v u a s	1 3 8 7	1 6 0 8	1 5. 9 %
i d l l b i I I. L t o a n s o c o m p a n e s a n s m a u s n e s s e s	9 2 8 9	9 2 2 7	4. % 7
b l i I I I. P t c s e c o r u	1 5 4 4	1 7 1 4	% 1 1. 0
h O I V. t e r	9 6	1 0 4	8. 3 %
l l T t o a o a n s	2 3 8 4 7	2 2 0 4 5	% 4. 4
N t o e:
f l f L i i i t t t o a n p o r o o n e o m p a r m e n s	2 2 9 4 9	2 4 1 2 6	5. 1 %

Market share evolution

market share (October 2019)

Individual loans origination and market shares

Commercial activity | 2

BPI, a Bank supporting the Tourism Sector

Strategic focus on the Tourism segment

• Complete solutions to support investment, treasury management and risk hedging
• Share of 15.4% by amount in the "Linha de Apoio à Qualificação da Oferta"*

Specialist teams

• Dedicated team to the Hotels & Tourism sector
• Structuring complex financing operations
• Monitoring and implementation of specific solutions

National Tourism Award

• Launch of 1st edition ‐ 464 applications
• Partnership with Impresa and sponsorship of the Ministry of Economy
• To distinguish the best companies, practices and projects in the Tourism sector

Partnerships in the segment

Official Sponsor of the main National Tourism Fair

Tourism Innovation Centre

• Founding Partner of NEST ‒
• Training Sessions BEST – Business Education for Smart Tourism

* Turismo de Portugal (31/12/2019).

Commercial activity | 2

BPI, a Bank supporting the Agricultural Sector

Strategic focus on the Agriculture segment

Complete financial solutions

Specialist teams

• Dedicated team to the sector
• Structuring complex financing operations
• Monitoring and implementation of specific offer solutions

Ovibeja (Apr.)

FNA ‐ Feira Nacional de Agricultura (Jun.)

-

National Agriculture Award

• 8th edition, 1 199 applications
• Partnership with COFINA and sponsorship of the Ministry of Agriculture
• To reward success cases of national agriculture: Agriculture and Agroindustry, Forests and Livestock.

Segment Leadership

• IFAP: by amount of credit granted
• CAP: by number of grant advances
• Agrogarante: by total accumulated operations since beginning of the protocol

Sources: Agrogarante ‐ Sociedade de Garantia Mútua (30/11/2019). Confederação dos Agricultores de Portugal (30/09/2019). Instituto de Financiamento da Agricultura e Pescas (13/09/2019).

BPI, a Bank supporting companies internationalisation

Presence in 5 continents and in 24 countries

Specialised support

• Dedicated teams at Retail Branches and Corporate Centres
• Specialists in Trade Finance
• Free in‐company sessions and on‐site

Offer

• Financing and risk hedging solutions throughout the entire operating cycle
• Cross Border (collaboration Caixabank–BPI) – integrated solutions to support companies

Events

"Business with the World"

Total customer resources increased 5.7%(*) YoY

Customer resources

I M € n	D 1 8 e c	D 1 9 e c	Y Y o
b l h O I. t n‐ a a n c e s e e r e s o u r c e s	2 2 0 2 5	2 3 0 1 5	% 4. 4
d C i t t s o m e r e p o s s u	2 1 1 0 7	2 2 7 0 7	7. 6 %
l d f l I i i i i i t t t t n s o n a a n n a n c a n e s o r s u v d i t e p o s s	9 4 5	3 0 8	‐6 4 % 7.
d I I. A t t s s e s u n e r m a n a g e m e n	9 1 9 1	9 7 9 7	6. 6 %
l f d M t u u a u n s	0 8 3 5	2 4 5 5	3. 2 %
i l i i i C t t a p a s a o n n s u r a n c e	4 1 0 7	4 5 5 2	% 1 0. 8
b l i f f i I I I. P c o e r n g s u	1 9 5 2	1 5 6 9	‐1 9. 6 %
l T t o a	3 3 9 1 5	3 3 8 2 4	3. 6 %
No te : l l d i T t t o a c u s o m e r r e s o u r c e s, e x c u n g l d f l i i i i i i t t t t n s u o n a a n n a n c a n v e s o r s	3 2 2 5 0	3 4 0 7 3	% 5. 7

Market shares

	1 9 N o v.
i D t e p o s s	) 1 0. 2 % 1
2) l fu d M t u u a n s	% 1 1. 6
2) i l i i i C t t a p a s a o n n s u r a n c e	1 6. 0 %
2) i i l R t t e r e m e n s a n g s p a n s v	1 1. 2 %

1) In October 2019.

2) Retirement savings plans ("Planos poupança reforma"‐PPR) include retirement savings plans in the form of mutual funds and capitalisation insurance. For this reason, the retirement savings plans are excluded in the calculation of the mutual funds and capitalisation insurance market shares.

10*) Excluding deposits from institutional and financial investors.

Commercial activity | 2

Extending savings solutions for retirement

CAPITALISATION INSURANCE +11% yoy

• Focus on savings solutions for Retirement
• New offer "PPR Destino" with an investment strategy adjusted to the time horizon of retirement and a dynamic distribution of assets for portfolio optimisation.
• Flexible range of BPI Capitalisation Insurance that provides portfolio diversification adjusted to the client's risk profile ‐ BPI Capitalização e Multisoluções.

Digital transformation: increased utilisation

121) Active customers 1st account holders, individuals and companies.

2) Individuals BASEF (Dec.2019, accumulated 12 months) , ECSI (2019) and Companies DATAE (2019), main Banks.

Digital transformation and improving efficiency for the benefit of customers

Better, faster and greater availability of service to customers.

131) Self service, cash deposit and recirculating machines.

Commercial banking gross income increased 1.2% in 2019

Gross income in the activity in Portugal

I M € n	( ) 1 D 1 8 e c	D 1 9 e c	 %
i i N t t t e n e r e s n c o m e	4 2 2. 6	4 3 6. 3	3. 2 % +
i i d d d i d i D t t e n s a n e q a c c o n e n c o m e v u y u	9. 2	2 3. 6
f d N i i i t e e e a n c o m m s s o n n c o m e	( ) 2 2 7 7. 8	2 5 7. 9	7. 2 % ‐
C O C G G O S S C O M M E R I A L B A N K I N R I N M E	0 9. 7 5	8 7 1 7.	2 % 1. +
h i O t t e r n e n c o m e	‐3 1	‐1 0. 4
i R t e c u r r e n g r o s s n c o m e	7 0 6. 4	7 0 7. 4	0. 1 % +
N i t t o n r e c u r r e n e m s	( ) 3 9. 6 5	‐
i d G t r o s s n c o m e a s r e p o r e	7 6 6. 0	7 0 7. 4	% 7. 7 ‐

1) In 2019, the Banking sector contribution was reclassified from "Income tax" to "Other operating income and expenses".

The captions of the 2018 profit and loss account presented in this document were restated to consider this reclassification.

2) In 2018, it includes commissions with cards and acquiring and investment banking businesses that were subsequently sold to CaixaBank. 3) Gain from the sale of the equity holding in Viacer.

Net interest income increased 3.2% (yoy)

Commissions decreased 7.2% yoy

Excluding the effect from sales of the cards, acquiring and investment banking businesses in 2018, commissions increased (comparable perimeter) by 14.0 M.€ (+5.7% yoy).

€ I M n	8 D 1 e c	9 D 1 e c	Y Y o
k i i i B a n n g c o m m s s o n s	1 1. 1 7	1 4. 0 5	1 0. 0 % ‐
l f d M t u u a u n s	4 0. 0	3 6. 6	8. 5 % ‐
I n s u r a n c e	6 6. 7	6 3 7.	0. 9 %
l T t o a	2 7 7. 8	2 5 7. 9	% 7. 2 ‐

Recurrent operating expenses increased 2.7% yoy

1) Additionally, at Dec.19, BPI had 36 premier centres, 1 mobile branch and 34 corporate centres in Portugal, thus totalling 477 business units.

Cost‐to‐income of 60.2% in 2019

1) Recurrent operating expenses deducted of income from services rendered to CaixaBank.

Regulatory costs and income tax

191) Recorded in the caption "Other operating income and expenses".

Reversals of loan impairments of 20.7 M.€ and recoveries of 22.6 M.€ (2019)

NPE ratio of 2.5% in December 2019

1) Coverage by impairments accumulated in the balance sheet for loans and guarantees; does not consider collaterals.

21 2) NPE ratio considering the prudential supervision perimeter.

Sale of non‐performing loans (NPL) and real estate assets in the 4Q 2019

Banco BPI sold a portfolio of 221 M.€ of non‐performing loans and real estate assets in the 4Q 2019.

Employees pension liabilities

Employees pension liabilities

M €	De 1 8 c	De 1 9 c
l p l b l To ic ia i i ta t s ty a s e rv e	1 6 3 9	1 8 0 4
f he io fu d Ne t a ts t s s e o p e ns n n s	1 6 1 3	1 7 6 7
l o f c f p l b l Le io ia i i ie t ve ov e ra g e o e ns n s	9 8 %	9 8 %
fu io d Pe tu ns n n s re rn	% 5. 5	% 1 2. 6

Actuarial assumptions

	De 1 8 c	De 1 9 c
isc D t r te ou n a	2. 0 %	3 % 1. 4
la h Sa t te ry g ro w ra	0 % 1.	0. 9 %
io h Pe t te ns ns g ro w ra	% 0. 5	% 0. 4
l i b le M M ta ty ta or : en	T V 8 8	/ 9 0
l i b le M W ta ty ta or : om en	/ T V 8 8 9 0	3 y ea rs –

Actuarial deviations1)

	2 0 1 9
fro fo l in io In tm t p t co m e m ve s en or	6 1 7 +
ha he l a C in ia io t tu t ng e a c ar ss um p ns	( ) 1 5 3
he O t r	( ) 4 3
l ia de ia io in 2 0 9 Ac 1 tu t ar ns v	( ) 9 1

1) Recognised directly in shareholders, in accordance with IAS19.

Solid capital position

Banco BPI's Board of Directors approved to propose a distribution of 117 M.€ of dividends in respect to 2019, which corresponds to a 36% payout ratio of consolidated net income.

24

Balanced funding structure and comfortable liquidity position

Customer resources constitute the main source of financing of the balance sheet (74% of assets)

25 1) Includes short‐term public debt of 0.8 Bi.€ (Portugal 52% and Italy 48%), with a residual average maturity of 0.5 years, and medium and long‐term debt of 2.3 Bi.€ (Portugal 30%, Spain 58% and Italy 12%) with an average residual maturity of 2.4 years.

2) Average 12 months, according to EBA guidance. Average amount (last 12 months) of LCR components calculation: Liquidity Reserves (4 368 M.€); Total net outflows (2 520 M.€). 3) In force in June 2021.

Social responsibility | 4

Implementation of programs of "la Caixa" Foundation in Portugal

"la Caixa" Foundation budget for 2019: 20 M.€ (12 M.€ in 2018)

Foundation own programs

Adaptation of "la Caixa" Foundation programs in Portugal:

• Humaniza Programme
• Incorpora Programme
• Health research, CaixaImpulse and Scholarships
• Culture and education: Creactivity, Itinerant Exhibitions, Participatory and School Concerts, Desafio Empreende
• Pro‐childhood
• Seniors
• Volunteering: CooperantesCaixa

Budget managed with the collaboration of BPI

Proximity support to projects selected by BPI

through the Social Responsibility Committee or the Decentralised Social Initiative (pilot launched in 2019)

• Natural History and Science Museum of the University of Porto
• Casa da Arquitetura
• Museum of Contemporary Art of Elvas

• Orchestra XXI

• Marvão International Music Festival

• Caramulo Museum

5 BPI "la Caixa" Awards

Awards to support social institutions projects:

• Solidary
• Seniors
• Capacitar
• Childhood
• Rural

Volunteering: Award Reviewers

Special projects in Portugal and other support

Projects to respond to specific country challenges and other support:

• PROMOVE Contest ‐ Promotion of border regions

• Social Equity Initiative with Nova SBE

• Rapid Response Mechanism for Higher Education in Emergencies (RRM)

• Serralves, Casa da Música and MNAA

Social responsibility | 4

2019 BPI "la Caixa" awards

Since 2010, more than 15 M.€ were granted to support projects of social solidarity institutions

BPI, a Bank supporting entrepreneurship and innovation

101 applications (1 000 since it was launched)

Winner: Inovafil

To distinguish

national SME

innovative

BPI, a Bank committed to sustainable financing

Signature of commitment letter

Guidelines for accelerating the sustainable finance in Portugal

New credit line of 100 M.€ Decarbonisation and Circular Economy

Conference "Towards a Sustainable Tourism Industry"

Sustainable tourism on debate at BPI meetings with Companies

• Promotion of sustainable investment practices in Portugal, contributing to carbon neutrality by 2050
• Support to companies modernisation and to enhance competitiveness by implementing measures that reduce energy consumption and promote the shift from fossil to renewable energy sources.
• BPI participation in the "Financial Support Instruments" panel discussion, presenting BPI industry‐specific offering solutions
• Debate on "Sustainable tourism, attracting new markets and combating seasonality", at the BPI meeting with Companies in Vilamoura

Public recognition| 5

Public recognition in 2019

Public recognition| 5

BPI Digital Solutions Public recognition in 2019

Public recognition| 5

Public recognition in 2019

BPI has investment grade ratings for LT debt from Fitch and S&P and for LT deposits from Moody's

/ ( bt d it R ing ) Lon Ter De Iss r C at g m ue re	( bt / Lon Ter De g m ) Iss ing rat ue r … A a2, Aa 1 e Aa a	/ ( bt fa lt ) Lon Ter De Iss De Ra ing t g‐ m ue r u	/ ( bt ing ) Lon Ter De Iss Ra t g‐ m ue r A ( hig h), … A A, A AA A
… A A‐, AA AA AA A + e ,	bo ds Mo Aa 3 rtg ag e n	… A A‐, AA AA AA A + e ,	bo ds ( low ) Mo A A rtg ag e n
A+	A 1	A+	( h h ) A ig
A	A 2	A	k Ba 1 n A
A‐	3 A	A‐	( low ) A
B B B+	its De Ba 1 p os a	k Ba 1 n B B B+	( ) l h ig h Po B B B rtu g a
k Ba 1 l B B B Po rtu n g a	2 Ba a	B B B l Po rtu g a	k Ba 3 B B B n
B B B‐	l Po k 1 Ba 3 rtu Ba g a n a	B B B‐	k 2 ( low ) Ba B B B n
B B+	k k 3 Ba 1 Ba 2 Ba n n	k Ba 3 B B+ n	( h h ) B B ig
k Ba 2 B B n	Ba 2	k Ba 2 B B n	k Ba 4 B B n
B B‐	3 Ba	B B‐	( ) low B B
B+	B 1	k Ba 4 B+ n	k Ba 5 ( h h ) B ig n
B	2 B	B	B
B‐	B 3	B‐	( ) low B
C C C+	k Ca 1 Ba 4 a n	C C C+	( h h ) C C C ig
… C CC, CC C‐, CC, C e D	k Ba 5 Ca 2 n a Caa 3, Ca e C …	… C CC, CC C‐, CC, C e D	C ( low ), ( hig h), ( low ), … C CC, CC CC CC, CC C ( hig h), C ( low ), C, D
( Lon ter g m de Inv B B B tm t g es en ra de bt )	( Lon ter g m de Inv Ba 1 tm t g es en ra a de ) its po s	( Lon ter g m de Inv B B B tm t g es en ra de bt )

S&P (18 Mar.19) upgraded by 1 notch BPI's long‐term debt rating, from BBB‐ to BBB, with stable Outlook. On the 17 Sep.19, S&P reaffirmed BPI ratings (with stable Outlook).

Moody's (24 Jul.19) upgraded Banco BPI's Baseline Credit Assessment (BCA) from ba1 to baa3, reaching investment grade level, and reaffirmed long‐term deposits rating at Baa1 and long‐term debt rating at Ba1. The ratings' outlook is stable.

Fitch (11 Oct.18) upgraded by 1 notch BPI's long‐term debt rating, from BBB‐ to BBB, with stable Outlook. On the 30 Oct.19, Fitch reaffirmed BPI ratings (with stable Outlook).

Investment Grade

Non‐Investment grade

Results in 2019 ‐ Highlights

351) Ratios calculated considering Banco BPI Board of Directors proposal for a dividend distribution of 117 M.€.

Results in 2019

(unaudited accounts)

• Income Statements and Balance sheet in accordance with IAS / IFRS
• Profitability and efficiency as in the Bank of Portugal's Instruction no. 16/2004
• Reconciliation between BPI reported figures and BPI Segment contribution to CaixaBank Group
• Alternative performance measures

Income Statement of activity in Portugal

(unaudited)

Annexes

	1) De 1 8 d c ta te re s		De 1 9 c			 %
In € M	As	No n	l. n Ex c on	As	No n	l. n Ex c on	l. n Ex c on
	d te re p or	2) re cu rr.	re cu rr.	d te re p or	3) re cu rr.	re cu rr.	re cu rr.
Ne in inc t te t re s om e	4 2 2. 6		4 2 2. 6	4 3 6. 3		4 3 6. 3	3. 2 %
de d iv i inc D n om e	1. 7		1. 7	3. 3		3. 3	9 4. 3 %
i d inc Eq ty te u ac co un om e	7. 5		7. 5	2 0. 3		2 0. 3	% 1 7 1. 9
fe d c Ne iss io inc t e a n om m n om e	2 7 7. 8		2 7 7. 8	2 5 7. 9		2 5 7. 9	% ‐7 2
/ ( los ) f l a d l b l d o he Ga ins ina ia ia i i ies ts t t se s on nc ss e an a n r	8 4. 6	5 9. 6	2 5. 1	1 0. 8		1 0. 8	‐5 7. 0 %
he d e O ing inc t t r o p er a om e a n xp en se s	( ) 2 8. 2		( ) 2 8. 2	( ) 2 1. 2		( ) 2 1. 2	2 4. 7 %
Gr inc os s om e	6 6. 0 7	9. 6 5	0 6. 4 7	0 4 7 7.		0 4 7 7.	0. 1 %
S f f e ta xp en se s	( ) 2 6 2. 2	( ) 2 1. 1	( ) 2 4 1. 1	( ) 2 6. 4 1	( ) 1. 5	( ) 2 6 4 4.	% 1. 4
he dm O in is ive t tra t r a ex p en se s	( ) 1 7 2. 9	( ) 3. 1	( ) 1 6 9. 8	( ) 1 4 8. 1		( ) 1 4 8. 1	% ‐1 2. 8
d De ia io isa io t t t p re c n a n am or n	( ) 2 3. 8		( ) 2 3. 8	( ) 5 3. 9		( ) 5 3. 9	1 2 6. 2 %
Op ing t er a ex p en se s	( ) 4 5 8. 9	( ) 2 4. 2	( ) 4 3 4. 7	( ) 4 4 8. 1	( ) 1. 5	( ) 4 4 6. 6	2. 7 %
Ne ing inc t o t p er a om e	3 0 7. 1	3 5. 4	2 7 1. 7	2 5 9. 3	( ) 1. 5	2 6 0. 8	‐4 0 %
irm los d o he is io Im t t p a en se s a n r p ro v ns	4 7. 7		4 7. 7	3 6. 8		3 6. 8	2 2. 9 %
ins d los in he Ga t ts a n se s o r a ss e	8 5. 0	9 8. 8	( ) 1 3. 9	4. 7		4. 7	% 1 3 3. 6
inc be fo inc Ne t ta om e re om e x	4 3 9. 7	1 3 4. 2	3 0 5. 5	3 0 0. 8	( ) 1. 5	3 0 2. 3	‐1 1 %
Inc ta om e x	( ) 1 0 7. 7	( ) 2 0. 5	( ) 8 7. 2	( ) 7 0. 5	0. 4	( ) 7 0. 9	‐1 8. 6 %
fro Ne inc in ing io t t t om e m co n u o p er a ns	3 3 2. 1	1 1 3. 8	2 1 8. 3	2 3 0. 2	( ) 1. 1	2 3 1. 3	6. 0 %
fro inc d isc in d o io Ne t t t om e m on ue p er a ns	6 2 4.	6 2 4.	( ) 0. 0
inc Ne t om e	3 9 6. 3	1 7 8. 0	2 1 8. 3	2 3 0. 2	( ) 1. 1	2 3 1. 3	% 6. 0

1) In 2019, the Banking sector contribution was reclassified from "Income tax" to "Other operating income and expenses". The 2018 profit and loss account was restated to consider this reclassification.

2) Non recurrent impacts in 2018: gain of 193.1 M.€ with the sale of subsidiaries and the stake in Viacer, cost of 15.3 M.€ after taxes with early retirements (21.1 M.€ before taxes), non‐recurrentother administrative expenses of 2.2 M.€ (after tax)and net income from discontinued operations of 2.5 M.€.

3) Non recurrent impacts in 2019: costs with early retirements.

Annexes

Consolidated income statement

(unaudited)

In M. €	De 1 8 c	De 1 9 c
	1) ed tat res
int inc Ne t st ere om e	2 2. 6 4	3 6. 3 4
iv i de d inc D n om e	1. 7	4 9. 4
d Eq ity inc te u ac co un om e	2 7 1. 6	4 0. 7
fee d c Ne iss ion inc t an om m om e	2 7 7. 8	2 5 7. 9
/ ins ( los ) f ina ia l a d l ia b i l it ies d o he Ga ts t se s on nc sse an an r	7 6. 9	( ) 7. 4
he d e Ot ing inc t r o p era om e a n xp en se s	( ) 2 8. 2	( ) 2 5. 8
Gr inc os s om e	1 0 2 2. 3	7 5 1. 0
f f e Sta xp en se s	( ) 2 6 2. 2	( ) 2 4 6. 1
f w h h: f f e O ic Re nt sta cu rre xp en se s	( ) 2 4 1. 1	( ) 2 4 4. 6
2) No t c ts n‐r ec ur ren os	( ) 2 1. 1	( ) 1. 5
he dm in ist ive Ot rat r a ex p en se s	( ) 1 7 2. 9	( ) 1 4 8. 1
d a De iat ion isa ion rt t p rec an mo	( ) 2 3. 8	( ) 5 3. 9
Op ing t era ex p en se s	( ) 4 5 8. 9	( ) 4 4 8. 1
ing inc Ne t o t p era om e	5 6 3. 4	3 0 2. 9
los d o he Im irm is ion t t p a en se s a n r p rov s	4 7. 9	3 6. 8
d los he Ga ins in ot ts an se s r a sse	( ) 6 8. 7	4. 7
inc be fo inc Ne t ta om e re om e x	2. 6 5 4	3 4 4. 4
Inc e t om ax	( ) 1 1 6. 2	( ) 1 6. 5
fro Ne inc inu ing ion t nt t om e m co o p era s	4 2 6. 4	3 2 7. 9
inc fro d isc inu d o ion Ne t t t om e m on e p era s	6 2 4.
inc Ne t om e	4 9 0. 6	3 2 7. 9
	De 1 8 c	De 1 9 c
ha ( ) Ea ing € rn s p er s re	0. 3 4	0. 2 3
( ) inc fro inu ing ion Ne € t nt t om e m co o p era s	0. 2 9	0. 2 3
fro d d o ( ) Ne inc isc inu ion € t t t om e m on e p era s	0. 0 4
ht d n f s ha ( l l ) Av ig in i ion era g e w e e r. o res m s	1 4 5 7	1 4 5 7

1) In 2019, the Banking sector contribution was reclassified from "Income tax" to "Other operating income and expenses".

The 2018 profit and loss account was restated to consider this reclassification.

2) Costs with voluntary terminations and early retirements.

Annexes

Consolidated balance sheet

In M .€	De c 1 8	De c 1 9
AS SET S
h a nd h b ala al b ks and he r d and de Cas sits t ce ntr ot cas nce s a an em po	2 4 52. 9	1 0 68. 3
ial he ld f din t fa alu hro h p rof r lo nd at f Fin ir v it o air ets tra e t anc ass or g, a ug ss a
val thr h o the reh siv e i ue ou g r co mp en nco me	2 3 30. 5	2 3 26. 8
Fin ial ise d c ets at ort ost anc ass am	25 671 .9	27 439 .3
Of wh ich :
Loa Cu to sto ns me rs	22 949 .1	24 125 .7
Inv in jo int d a cia est nts ntu tes me ve res an sso	209 .1	247 .2
ibl Tan ts g e a sse	67. 3	169 .6
ibl Int ts ang e a sse	55. 1	65. 8
Tax set as s	352 .8	272 .5
nd dis sal cla fie d a s h eld fo le No ssi t a ts a n‐c urr en sse po gr ou ps r sa	33. 9	14. 6
Ot he set r as s	394 .5	207 .6
al a Tot ts sse	31 568 .0	31 811 .6
LIA BIL ITIE S
ial liab ilit he ld f Fin ies din tra anc or g	141 .3	146 .2
ial liab ilit d c Fin ies ise at ort ost anc am	27 515 .7	27 640 .2
sits l Ba nks d C red it I itu tio De ‐ C tra nst po en an ns	3 2 06. 3	2 7 77. 1
De sits ‐ C ust po om ers	22 960 .3	23 231 .4
chn l pr Te ica isio ov ns
bt uri tie s is d De sec sue	1 1 18. 2	1 3 58. 7
du ub ord ted lia bil Me m i ina itie tem mo ran s: s s	304 .5	304 .4
he r fi cia l lia bil itie Ot nan s	231 .0	273 .0
Pro vis ion s	65. 5	44. 4
lia bil Tax itie s	73. 8	17. 2
he r li ab ilit ies Ot	565 .7	527 .4
Tot al L iab ilit ies	28 362 .1	28 375 .4
Sha reh old ' eq ibu tab le t he sha reh old of uit BP I ttr o t ers y a ers	3 2 06. 0	3 4 36. 1
llin int No tro sts n c on g ere	0.0	0.0
al S har eh old ' e Tot ity ers qu	3 2 06. 0	3 4 36. 1
al l iab ilit ies d S har eh old ' eq uit Tot an ers y	31 568 .0	31 811 .6

Consolidated profitability and efficiency metrics

(unaudited)

Annexes

According to Bank of Portugal Instruction no. 16/2004 with the amendments of Instruction 6/2018

	De 1 8 c	De 1 9 c
/ Gr inc A T A os s om e	% 3. 3	% 2. 4
/ be fo d bu b le l l Ne inc inc inc i ing in A T A t ta t tr ta to tro te ts om e re om e x a n om e a n on ‐co n re s	2. 0 %	1. 1 %
/ be fo d bu b le l l ha ho l de ' Ne inc inc inc i ing in t ta t tr ta to tro te ts om e re om e x a n om e a n on ‐co n re s av er ag e s re rs ( lu d l l ) i inc ing ing in ty tro te ts eq u n on ‐co n re s	9. 8 % 1	0. % 1 5
/ f f e 1 S Gr inc ta xp en se s os s om e	2 3. 6 %	3 2. 6 %
/ 1 Op ing Gr inc t er a ex p en se s os s om e	4 2. % 5	9. % 5 5
( ) de i io Lo t to ts t an s ne p os ra	0 % 1 4	0 % 1 5

1) Excluding early‐retirement costs.

NPE ratio and forborne (prudential perimeter; according to the EBA criteria)

	8 De 1 c	9 De 1 c
fo ( ) No ing N P E io t n‐ p er rm ex p os ur es ra	3. 5 %	2. 5 %
by d l la ls N P E c im irm ts te ov er p a en an co ra	% 1 2 7	% 1 2 4
2) f fo io bo inc lu de d in Ra N P E t t o r rn e n o	0. 8 %	0. 6 %

2) Forborne according to EBA criteria and considering the scope of prudential supervision. On 31 Dec. 2019, the forborne was 544 M.€ (forborne ratio of 1.7%), of which 192 M.€ was performing loans (0.6% of the gross credit exposure) and 352 M.€ was included in NPE (1.1% of the gross credit exposure).

Annexes

Reconciliation between BPI reported figures and BPI Segment contribution to CaixaBank Group

Profit & loss account (2019)

In i l l ion f e ( M. € ) m s o uro	20 19 ort ed by rep BP I	Con sol idat ion , st and ard isat ion and t ch e in FV ne ang adj ust nts de rive d fr the me om bin atio f bu sin com n o ess es	20 19 BP I ntr ibu tio n t co o CA G BK rou p	BP I t se gm en	Inv tm ts es en t se gm en
Ne t in in ter est com e	43 6	( ) 24	41 2	41 6	( ) 4
de ds Div i n	49		49		49
d i Eq uit te y a cco un nco me	41	( ) 3	38	21	17
fee d c Ne mi ssi t s a n om on s	25 8		25 8	25 8
din Tra inc g om e	( ) 7	16	9	24	( ) 15
Ot he ing in e & rat r o pe com ex pe nse s	( 26 )	9	( ) 17	( ) 17
Gr in oss com e	75 1	( ) 2	9 74	70 2	47
Rec tin ent urr op era g e xpe nse s	( ) 44 7	( ) 16	( ) 46 3	( ) 46 3
din Ext tin rao r ary op era g e xpe nse s	( ) 1		( ) 1	( ) 1
‐im irm t in Pre pa en com e	30 3	( ) 18	28 5	23 8	47
‐im irm t in it ho din Pre ut ext pa en com e w rao r ary ex pe nse s	30 4	( ) 18	28 6	23 9	47
irm los fin cia l as Im ent set pa ses on an s	37	16 0	19 7	19 7
Ot he r im irm d p isio ent pa s a n rov ns		3	3	3
/ Ga ins los di ls & he ot ses on spo sa rs	4	( ) 2	2	2
Pre x i ‐ta nco me	34 4	14 3	48 7	44 0	47
Inc e t om ax	( ) 16	( ) 44	( ) 60	( ) 10 8	48
fit for he rio d Pro t pe	32 8	99	42 7	33 2	95
s & he Mi rity in ter est ot no r
t in Ne com e	32 8	99	42 7	33 2	95

The difference between the earnings released by BPI and the earnings attributable to CaixaBank Group is largely a result of consolidation adjustments, standardisation adjustments and the net change in the fair value adjustments generated from the business combination.

Additionally, the BPI contribution to CaixaBank Group results is broken down into BPI segment and Investments segment contributions, the latter including the contributions from BFA and BCI.

Loan portfolio & customer funds(Dec. 19)

De 1 9 c. In m illio of e ( M.€ ) ns uro	Re te d by p or B P I	Ad jus tm ent s	B P I c tr i bu t ion to on C A B K Gr ou p ( B P I se ) t g me n
d a dv Lo s t to t an s a n an ce o c us me rs, ne	2 4 1 2 6	( ) 3 6 0	2 3 7 6 6
l c fu ds To ta to us me r n	3 4 3 8 2	( ) 4 5 9 3	2 9 7 8 9

The difference between BPI reported figures and those reported by CaixaBank for the BPI segment can largely be explained:

• in Loans and advances to customers (net), by the associated fair value adjustments generated by the business combination at 31 December 2019 and consolidation adjustments (elimination of intra‐group balances: BPI credit to CaixaBank Payments);
• in Customer funds, by the liabilities under insurance contracts and their fair value adjustments at 31 December 2019, as generated by the business combination, which have been reported in the banking and insurance business segment of CaixaBank following the sale of BPI Vida to VidaCaixa de Seguros y Reaseguros.

Alternative Performance Measures – reconciliation of the income statement

The European Securities and Markets Authority (ESMA) published on 5 October 2015 a set of guidelines relating to the disclosure of Alternative Performance Measures by entities (ESMA / 2015 / 1415). These guidelines are to be obligatorily applied with effect from 3 July 2016.

In addition to the financial information prepared in accordance with the International Financial Reporting Standards (IFRS), BPI uses a set of indicators for the analysis of performance and financial position, which are classified as Alternative Performance Measures, in accordance with the abovementioned ESMA guidelines. The information relating to those indicators has already been the object of disclosure, as required by the ESMA guidelines.

In the current presentation, the information previously disclosed is inserted by way of cross‐reference. A summarized list of the Alternative Performance Measures is presented next.

Ac ron ym	d de ign ion do d at te s a n s s a p
td y	‐da Yea r‐to te	€, Eur EU R os,	eur os
yoy	Yea r‐o n‐y ear	M. €, M. eu ros	mil lion eu ros
qo q	rte ter qua r‐o n‐q uar	th. €, t h. e uro s	tho nd usa eur os
RC L	las sifi ed Rec		cha nge
		n.a	ilab le not ava
ECB	Cen l Ba nk Eur tra ope an	0, –	nul l or ele irr t van
Bo P	k o f P l Ban ort uga	Liq	liqu id
CM VM	o d ado of Val obi liár ( rke n) Com issã o M s M ios Sec urit ies Ma t C mis sio erc ore om	vs.	ver sus
AP M	Alt erf ativ e P e M ern orm anc eas ure s	b.p	bas is p oin ts
IM M	Int erb ank M Ma rke t one y	p.p	oin tag t per cen e p
T1	Tie r 1	E	ima Est te
CET 1	Co Equ ity Tie r 1 mm on	F	For st eca
RW A	Ris k w eig hte d a ts sse
RO TLT	ted lon fin ing tio Tar ‐te ge ger rm re anc op era ns
LCR	uid Liq ity io rat cov era ge

Units, conventional signs and abbreviations

* BPI Grupo X CaixaBan
------------------------	--

Alternative Performance Measures – reconciliation of the income statement

Reconciliation of the income statement

The following table presents, for the consolidated income statement, the reconciliation of the structure used in the current document (Banco BPI Consolidated results in 2019) with the structure used in the financial statements and respective notes of the 2018 Annual Report.

Consolidated income statement

' Pr Str ed in t he Res ults tio uct nta ure us ese n	Dec 19	Dec 19	fin Str ted in the ial d re ctiv uct sta tem ent ote ure pre sen anc s an spe e n s
Net int st i ere nco me	436 .3	436 .3	Net int st i ere nco me
Div ide nd inc om e	49 .4	49. 4	Div ide nd inc om e
ted Equ ity inc acc oun om e	40. 7	40. 7	Sha f pr ofit / ( los s) o f en ed for the tho d titi ing uity unt re o es a cco us eq me
fee d co Net issi inc an mm on om e	257 .9	281 .0	d co Fee issi inc an mm on om e
		(23 .1)	Fee d co issi an mm on exp ens es
ns/ ( los ) on fin ial d li abi litie d o the Gai ets ses anc ass an s an r	(7.4 )	(0.1 )	ns/ ( los ) on de f fi l as d li abi litie d a t fa alu e th h p rof r lo Gai itio cia ir v it o set t m net ses rec ogn n o nan s an s no eas ure rou g ss,
		5.0	ns/ Gai ( los ) on fin ial d li abi litie s he ld f rad ing ets or t t ses anc ass an , ne
		(9.8 )	ns/ ( los ) on fin ial t de ed for din uls oril d a t fa alu e th h p rof r lo Gai sig ir v it o ets nat tra net ses anc ass no g co mp y m eas ure rou g ss,
		3.1	ns/ ( los ) fro m h edg Gai ing unt t ses e a cco , ne
		(5.7 )	s (g / s), Exc han diff ain los net ge ere nce
Oth nd atin inc er o per g om e a exp ens es	(25 .8)	32. 8	Oth atin inc er o per g om e
		(58 .6)	Oth atin er o per g e xpe nse s
Gro ss i nco me	751 .0	751 .0	GR OSS IN CO ME
ff e Sta xpe nse s	(24 ) 6.1	(24 ) 6.1	ff e Sta xpe nse s
Oth dm inis ive trat er a ex pen ses	(14 8.1 )	(14 8.1 )	Oth dm inis ive trat er a ex pen ses
and Dep iati isat ion ort rec on am	(53 .9)	(53 .9)	and Dep iati isat ion ort rec on am
ting Op era ex pen ses	(44 ) 8.1	(44 ) 8.1	Ad min istr ativ dep iati and isat ion ort e e xpe nse s, rec on am
Net ting inc op era om e	302 .9	302 .9
los d o the Imp airm ovi sio ent ses an r pr ns	36 .8	(2.3 )	al o f pr Pro vis ion ovi sio s or rev ers ns
		39. 1	/ Imp airm (rev al) of i airm los fin ial d at fai lue thr h p rof it o r lo ent ent ets t m ers mp ses on anc ass no eas ure r va oug ss
nd los oth Gai in ts ns a ses er a sse	4.7	1.0	(re sal) of sub sid d a Imp airm imp airm in iari es j oin ciat ent ent t ve ntu ver res an sso es
		1.7	/ airm (rev al) of i airm n‐f ina nci al a Imp ent ent ts ers mp on no sse
		(1.4 )	ns/ ( ) on f no n‐f Gai los de itio ina nci al a ts, net ses rec ogn n o sse
		3.4	fit/ ( los s) fro d d l gr s cl ifie d a s he ld f ale alif dis ued Pro isp ing tin tio t as set t qu m n on‐ cur ren s an osa oup ass or s no y as con op era ns
Net inc e b efo re i tax om nco me	344 .4	344 .4	FIT/ PRO (L OSS ) BE FOR E TA X F RO M C ON TIN UIN G O ATI ON S PER
Inco tax me	(16 .5)	(16 .5)	late d to fit o r lo ss f Tax r in ntin uin atio ex pen se o com e re pro rom co g o per ns
inc e fr ntin uin atio Net om om co g o per ns	327 .9	327 .9	FIT/ (L ) AF PRO OSS TER TA X F RO M C ON TIN UIN G O PER ATI ON S
Net inc e fr dis tin ued tio om om con op era ns	0.0	0.0	fit/ ( s) a Pro los fte x fr dis tin ued tio r ta om con op era ns
ribu tab le t llin Inco inte att tro ts me o n on‐ con g res	0.0	0.0	fit/ ( los s) for the riod ribu tab le t llin Pro inte att tro ts pe o n on‐ con g res
inc Net om e	327 .9	327 .9	FIT/ PRO (L OSS ) F OR RIO O O ERS OF THE PE D A TTR IBU TAB LE T WN TH E PA REN T

Alternative Performance Measures

EARNINGS, EFFICIENCY AND PROFITABILITY INDICATORS

The following earnings, efficiency and profitability indicators are defined by reference to the above structure of the profit and loss account used in this document.

Gross income = Net interest income + Dividend income + Net fee and commission income + Equity accounted income + Gains/(losses) on financial assets and liabilities and other + Other operating income and expenses

Commercial banking gross income = Net interest income + Dividend income + Net fee and commission income + Equity accounted income excluding the contribution of stakes in African banks

Operating expenses = Staff expenses + Other administrative expenses + Depreciation and amortisation

Adjusted Operating expenses = Staff expenses excluding cost with early retirements and voluntary terminations and (only in 2016) gains with the revision of the Collective Labour Agreement (ACT) + Other administrative expenses (recurrent) + Depreciation and amortisation ‐ Income from services rendered to CaixaBank Group (recorded in "Other operating income and expenses"

Net operating income = Gross income ‐ Operating expenses

Net income before income tax = Net operating income ‐ Impairment losses and other provisions + Gains and losses in other assets

Cost‐to‐income ratio (efficiency ratio) 1) = Operating expenses / Gross income

Adjusted Operating expenses‐to‐commercial banking gross income 1) = Operating expenses, excluding costs with early‐retirements and voluntary terminations and (only in 2016) gains with the revision of the Collective Labour Agreement (ACT) ‐ Income from services rendered to CaixaBank Group (recorded in "Other operating income and expenses" / Commercial banking gross 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) on financial assets available for sale

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 goodwill on equity holdings.

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 Unitary intermediation margin = Loan portfolio average interest rate, excluding loans to Employees ‐ Deposits average interest rate

BALANCE SHEET AND FUNDING INDICATORS

44

On‐balance sheet Customer resources2) = Deposits + Capitalisation insurance of fully consolidated subsidiaries + Participating units in consolidated mutual funds

• Deposits = Demand deposits and other + Term and savings deposits + Interest payable + Retail bonds (Fixed rate bonds placed with Customers: 18.3 M.€ in Dec.2018 and 6.5 M.€ in Dec.2019))
• Capitalisation insurance of fully consolidated subsidiaries (BPI Vida e Pensões sold on Dec.17) = Unit links capitalisation insurance and "Aforro" capitalisation insurance and others (Technical provisions + Guaranteed rate and guaranteed retirement capitalisation insurance)

Assets under management3) = Mutual funds + Capitalisation insurance + Pension plans

• Mutual funds = Unit trust funds + Real estate investment funds + Retirement‐savings and equity‐savings plans (PPR and PPA) + Hedge funds + Assets from the funds under BPI Suisse management + Third‐party unit trust funds placed with Customers
• Capitalisation Insurance4) = Third‐party capitalisation insurance placed with Customers
• Pension plans4) = pension plans under BPI management (includes pension plans of BPI Group)

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. 2) 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.

3) 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.

4) Following the sale of BPI Vida e Pensões in Dec.17, the capitalisation insurance placed with BPI's Customers are recorded off balance sheet, as "third‐party capitalisation insurance placed with Customers", and pension funds management is excluded from BPI's consolidation perimeter.

Alternative Performance Measures

BALANCE SHEET AND FUNDING INDICATORS (continuation)

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

Gross loans to customers = Gross loans and advances to customers (financial assets at amortised cost), excluding other assets (guarantee accounts and others) + Gross debt securities issued by Customers (financial assets at amortised cost)

Note: gross loans = performing loans + loans in arrears + receivable interests

Net loans to Customers = Gross loans to customers – Impairments for loans to customers

Loan‐to‐deposit ratio (CaixaBank criteria) = (Net loans to Customers ‐ Funding obtained from the EIB, which is used to provide credit) / Deposits and retail bonds

ASSET QUALITY INDICATORS

45

Impairments and provisions for loans and guarantees (in income statement) = Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss relative to loans and advances to Customers and debt securities issued by Customers (financial assets at amortised cost), before deduction of recoveries of loans previously written off from assets, interest and others + Provisions or reversal of provisions for commitments and guarantees

Cost of credit risk = Impairments and provisions for loans and guarantees ‐ Recoveries of loans previously written off from assets, interest and other

Cost of credit risk as % of the loan portfolio 1)= (Impairments and provisions for loans and guarantee ‐ Recoveries of loans previously written off from assets, interest and other) / Average value in the period of the gross loans and guarantees portfolio

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

NPE ratio = Ratio of non‐performing exposures (NPE) according to EBA criteria (prudential perimeter)

Coverage of NPE = [Impairments for loans and advances to customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments] / Non‐performing exposures (NPE)

Coverage of NPE by impairments and associated collateral = [Impairments for loans and advances to customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments] + Collateral associated to NPE ] / Non‐performing exposures (NPE)

Non performing loans ratio ("crédito duvidoso"; Bank of Spain criteria) = Non performing loans (Bank of Spain criteria) / (Gross customer loans + guarantees)

Non performing loans (Bank of Spain criteria) coverage ratio = [Impairments for loans and advances to customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments] / Non performing loans (Bank of Spain criteria)

Coverage of non performing loans (Bank of Spain criteria) by impairments and associated collateral = [Impairments for loans and advances to customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments] + Collateral associated to credit ] / Non performing loans (Bank of Spain criteria)

Impairments cover of foreclosed properties = Impairments for real estate received in settlement of defaulting loans / Gross value of real estate received in settlement of defaulting loans

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.

BANCO BPI, S.A. Registered office: Rua Tenente Valadim, 284, Porto Share capital: € 1 293 063 324.98

Registered at Commercial Registry of Porto under registration number PTIRNMJ 501 214 534 and tax identification number 501 214 534