Consolidated quarterly information (unaudited accounts)

Banco BPI

30 September 2013

(in accordance with article 10 of CMVM Regulation 5 / 2008)

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INDEX

Report

Leading indicators 4
BPI Group's consolidated results 5
- Domestic activity results 10
- International activity results 20
- Capital and CoCo redemption 25

Financial statements and notes

Consolidated financial statements (unaudited) 28
Notes to the consolidated financial statements 34

LEADING INDICATORS Amounts in M.€

	Domestic activity		International activity			Consolidated
	Sep.12	Sep.13	Chg.%	Sep.12	Sep.13	Chg.%	Sep.12	Sep.13	Chg.%
Net profit, efficiency and profitability
Net profit (as reported)	55.5	10.1	(81.7%)	61.6	62.6	1.6%	117.1	72.7	(37.9%)
Net profit (as reported) per share (EPS)1)	0.052	0.007	(85.8%)	0.057	0.045	(21.1%)	0.109	0.053	(51.8%)
Weighted average number of shares 1), 2)	1,075	1,384	28.7%	1,075	1,384	28.7%	1,075	1,384	28.7%
Efficiency ratio 3) (last 12 months)	62.1%	56.7%		41.6%	40.3%		56.5%	52.3%
Efficiency ratio excl. non-recurring impacts (last 12 months)	70.1%	83.3%		41.6%	40.3%		61.6%	68.2%
Return on average total assets (ROA)	0.2%	0.0%		2.9%	2.7%		0.5%	0.4%
Return on Shareholders' equity (ROE)	4.9%	0.7%		26.0%	24.9%		8.5%	4.3%
Balance sheet
Net total assets 4)	40 104	37 876	(5.6%)	5 949	6 300	5.9%	45 184	43 011	(4.8%)
Loans to Customers	26 263	25 565	(2.7%)	1 177	1 069	(9.2%)	27 440	26 634	(2.9%)
Deposits	19 046	19 214	0.9%	5 129	5 509	7.4%	24 175	24 723	2.3%
Deposits and retail bonds	21 116	20 170	(4.5%)	5 129	5 509	7.4%	26 245	25 679	(2.2%)
On-balance sheet Customer resources	23 875	23 177	(2.9%)	5 129	5 509	7.4%	29 004	28 686	(1.1%)
Off-balance sheet Customer resources5)	2 841	3 142	10.6%				2 841	3 142	10.6%
Total Customer resources6)	26 326	25 642	(2.6%)	5 129	5 509	7.4%	31 455	31 151	(1.0%)
Asset quality
Loans in arrears for more than 90 days	771	956	24.0%	62	56	(10.1%)	833	1 012	21.5%
Ratio of loans in arrears 7)	2.9%	3.6%		4.9%	4.9%		3.0%	3.7%
Credit at risk 8)	3.9%	5.0%		6.8%	7.1%		4.0%	5.1%
Cost of credit risk 9)	0.91%	0.85%		0.98%	0.62%		0.91%	0.84%
Pension liabilities
Employees pension liabilities	822	954	16.2%				822	954	16.2%
Employees pension funds assets	926	1 074	16.0%				926	1 074	16.0%
Cover of pension obligations 10)	112.7%	112.5%					112.7%	112.5%
Capital
Shareholders' equity and minority interests	1 251	1 611	28.8%	585	616	5.2%	1 836	2 227	21.3%
Core Tier I							3 662	3 471	(5.2%)
Own funds							3 663	3 425	(6.5%)
Risk weighted assets							24 728	22 815	(7.7%)
Core Tier I							14.8%	15.2%
Tier I							14.7%	15.0%
Capital ratio							14.8%	15.0%
CRD IV/CRR phasing in (rules envisaged for
2014) 11)
Core Tier I								14.0%
Leverage ratio								7.5%
LCR = Liquidity coverage ratio								280%
NSFR = Net Stable Funding Ratio								115%
CRD IV/CRR fully implemented 11)
Core Tier I								9.0%
Leverage ratio								4.8%
LCR = Liquidity coverage ratio								280%
NSFR = Net Stable Funding Ratio								114%
Distribution network and staff
Distribution network 12)	753	717	(4.8%)	165	174	5.5%	918	891	(2.9%)
BPI Group staff 13)	6 595	6 326	(4.1%)	2 251	2 429	7.9%	8 846	8 755	(1.0%)

1) Figures adjusted for the capital increase through cash injection in August 2012.

2) Average outstanding number of shares, deducted of treasury stock.

3) Operating costs as % of net operating revenue.

4) The total assets for each of the geographical segments presented above has not been corrected for the balances resulting from operations between these

segments.

5) Unit trust funds, PPR and PPA (excludes pension funds).

6) Corrected for double counting: placements of unit trust funds managed by BPI in the Group's deposits, structured products and unit trust funds.

7) Loans in arrears for more than 90 days.

8) Calculated in accordance with Bank of Portugal Instruction 23/2011. It includes loans in arrears for more than 90 days, falling-due loans associated, restructured loans (previously with instalments in arrears for more than 90 days), insolvencies that have not yet been included in loans in arrears for more than 90 days.

9) Loan impairments in the period (P&L account), net of arrear loans recovered, as percentage of the average performing loan portfolio. Annualised figures. 10) Cover of pension obligations by the pension funds assets.

11) Calculations according to BPI's interpretation of CRD IV/CCR rules, based on the information known by the Bank at the current date.

12) Includes traditional branches, housing shops, investment centres, corporate centres, Institutionals and one Project Finance centre. Domestic activity distribution network includes branches in Paris (12 branches).

13) Excludes temporary workers.

BPI GROUP'S CONSOLIDATED RESULTS

Consolidated overview

The Board of Directors of Banco BPI decided to ask the Bank of Portugal and EBA the approval of a request to redeem 588 M.€ of CoCo to submit to the Ministry of Finance. Following that repayment, the amount of CoCo would be reduced from 920 M.€ to 332 M.€.

Core Tier I capital ratios at 30 September 2013 stood as following:

Bank of Portugal: 15.2%
CRD IV fully implemented, after ongoing optimisation measures: 10.0%1)
CRD IV phasing in, after ongoing optimisation measures: 14.3%1)

Banco BPI has ongoing optimisation measures under the CRD IV / CRR regulatory framework that will allow to achieve a Core T1 capital surplus of 588 M.€ relative to a minimum ratio of 7.0% fully implemented.

Banco BPI earned a consolidated net profit of 72.7 million euro (M.€) in the period from January to September 2013. Earnings per share (Basic EPS) was 0.053 €.

The return on average Shareholders' equity was situated at 4.3% from January to September 2013.

Consolidated net operating revenue decreased by 11.4% (-105.7 M.€) relative to the same period of 2012, essentially penalized by the decline in net interest income by 19.3% (-84.9 M.€). Net interest income was under pressure from the low level of short-term interest rates and the cost of CoCo.

Consolidated operating costs decreased 7.5 M.€ (-1.5%) year-on-year benefiting from a 11.1 M.€ fall (-2.9%) in costs in domestic activity.

The consolidated credit at risk ratio (non-performing loans), calculated in accordance with Bank of Portugal Instruction 23 / 2011, was 5.1% at the end of September 2013. The accumulated impairment allowances in the balance sheet covered the credit at risk at 72% (without considering the coverage by associated collaterals).

The net credit loss from January to September 2013, which corresponds to the amount of impairment charges recognised in the period, net of recoveries of arrear loans and interest written off, was 0.84% of the loan portfolio's average balance, in annualised terms.

Customer deposits increased 548 M.€ (+2.3%) year-on-year to 24.7 Bi.€. At 30 September 2013, in the consolidated accounts, the transformation ratio of deposits into loans was 97%.

The pension liabilities under the Bank´s responsibility amounted to 954 M.€ at the end of September 2013 and were 113% covered by the pension fund assets.

1) Calculations according to BPI's interpretation of CRD IV/CCR rules, based on the information known by the Bank at the current date.

Consolidated net profit

Net profit of 72.7 million euro – BANCO BPI (Euronext Lisboa - Reuters BBPI.LS; Bloomberg BPI PL) posted in the period from January to September 2013 a consolidated net profit of 72.7 million euro (M.€). Earnings per share (Basic EPS) were 0.053 € (0.109 € in the same period 2012).

Income statement		Amounts in M.€
	Sep.12	Sep.13	Chg. M.€ Sep.12/ Sep.13	Chg.% Sep.12/ Sep.13
Net interest income	440.0	355.0	( 84.9)	(19.3%)
Technical results of insurance contracts	18.1	17.3	( 0.8)	(4.7%)
Commissions and other similar income (net)	255.2	234.7	( 20.5)	(8.0%)
Gains and losses in financial operations	222.0	228.8	6.8	3.1%
Operating income and charges	( 9.7)	( 15.9)	( 6.2)	(64.3%)
Net operating revenue	925.6	819.9	( 105.7)	(11.4%)
Personnel costs, excluding non recurring costs	280.1	275.4	( 4.7)	(1.7%)
Outside supplies and services	182.4	180.9	( 1.4)	(0.8%)
Depreciation of fixed assets	25.0	23.7	( 1.3)	(5.4%)
Operating costs, excluding non recurring costs	487.5	480.0	( 7.5)	(1.5%)
Non-recurring costs	( 7.4)	0.8	8.2	110.4%
Operating costs	480.1	480.8	0.7	0.1%
Operating profit before provisions	445.5	339.2	( 106.4)	(23.9%)
Recovery of loans w ritten-off	11.4	14.2	2.8	24.6%
Loan provisions and impairments	213.4	182.5	( 30.9)	(14.5%)
Other impairments and provisions	43.9	19.4	( 24.5)	(55.8%)
Profits before taxes	199.5	151.4	( 48.1)	(24.1%)
Corporate income tax	35.7	32.5	( 3.2)	(9.0%)
Equity-accounted results of subsidiaries	15.1	17.6	2.4	16.1%
Minority shareholders' share of profit	61.9	63.8	1.9	3.0%
Net Profit	117.1	72.7	( 44.4)	(37.9%)

Return on shareholders' equity (ROE)

The return on shareholders' equity (ROE) was 4.3% from January to September 2013.

The contribution of domestic activity to consolidated net profit in September 2013 amounted to 10.1 M.€. The ROE of domestic activity, to which was allocated, on average, 85% of the Group's capital, was 0.7%.

In the international activity, in its individual accounts, BFA's posted a return on shareholders' equity (ROE) of 28.9% from January to September 2013 and BCI's ROE reached 19.2%.

The contribution of international activity to consolidated net profit in September 2013 stood at 62.6 M.€ and the ROE of international activity, after consolidation adjustments, reached 24.9%.

Dom estic Activity					International activity
	Com m ercial Banking	Investm ent Banking	Shareholdings and other	Total	BFA (individual accounts)	Contribution to consolidated (BFA, BCI and Other)	BPI Group (consolidated)
Capital allocated adjusted (M.€)1)	1 878.3	35.1	14.9	1 928.3	580.3	334.6	2 262.9
As % of total	83.0%	1.6%	0.7%	85.2%	-	14.8%	100.0%
Net profit (M.€)2)	2.6	3.6	3.9	10.1	125.7	62.6	72.7
ROE	0.2%	13.8%	34.7%	0.7%	28.9%	24.9%	4.3%

Capital allocation, recurring profit and ROE by business area – Jan. to Sep. 2013 Amounts in M.€

1) The average capital co nsidered in the calculatio n o f ROE excludes the fair value reserve (net o f deferred taxes) relating to the po rtfo lio o f available-fo r-sale financial assets . The allo cated capital to each individual area o f do mestic activity, excluding the fair value reserve, is adjusted to reflect a capital emplo yment equal to the average capital emplo yed in the do mestic activity. A cco unting capital is used in the internatio nal activity.

2) The co ntributio n fo r co nso lidated pro fit o f the do mestic activity business areas has been adjusted by the capital reallo cation.

Loans and resources

At 30 September 2013, the net consolidated Customer loans portfolio amounted to 26.6 Bi.€, which corresponds to a year-on-year contraction of 2.9%. Customer deposits increased by 548 M.€ year-onyear (+2.3%).

Recourse to the European Central Bank of 4.0 Bi.€

At 30 September 2013, BPI's recourse to the ECB amounted to 4.0 Bi.€.

Transformation ratio of deposits into loans

At 30 September 2013, in the consolidated accounts, the transformation ratio of deposits into loans is 97%1 .

Income and costs

Consolidated net operating revenue decreased by 11.4% yoy (-105.7 M.€), essentially penalized by the decline in net interest income by 19.3% (-84.9 M.€). Net interest income was under pressure from the low level of short-term interest rates and the cost of CoCo. Profits from financial operations increased by 3.1% (+6.8 M.€) year-on-year, benefiting from realised capital gains of 129.3 M.€ on the sale of T-bonds in the first quarter. Commissions fell 8.0% over the period (-20.5 M.€).

Consolidated operating costs, excluding non-recurring items, declined by 7.5 M.€ (-1.5%) year-on-year, benefiting from the 11.1 M.€ drop (-2.9%) seen in domestic activity. Including non-recurring items, the aforesaid variations are +0.1% and -0.8%, respectively.

The consolidated efficiency ratio – operating costs as a percentage of net operating revenue -, calculated based on the income and costs recorded in the last 12 months, was 52.3%.

1) Calculated in accordance with Bank of Portugal Instruction 23 / 2011. Includes deposits of BPI Vida e Pensões.

Quality of the loan portfolio

At 30 September 2013, the ratio of Customer loans in arrears for more than 90 days was situated at 3.7% in the consolidated accounts. The credit at risk 1 ratio stood at 5.1% in the consolidated accounts.

Loan portfolio quality – consolidated accounts Amounts in M.€

M.€ % of loan portfolio 1) M .€ % of loan portfolio 1) M .€ % of loan portfolio 1) Loans in arrears (+90 days) 833.1 3.0% 891.9 3.2% 1 011.9 3.7% Credit at risk (Instruction 23/2011 BoP) 1 108.9 4.0% 1 157.4 4.2% 1 310.1 5.1% Loans impairments (in the balance sheet) 823.6 2.9% 824.4 2.9% 947.3 3.4% Write offs (in the period) 33.3 81.3 35.2 Note: Gross loan portfolio 28 224.2 28 128.6 27 535.8 Sep. 12 Dec. 12 Sep. 13

1) A s % o f the gro ss lo an po rtfo lio

Cost of credit risk

From January to September 2013 loan impairment charges of 182.5 M.€ were recorded (0.91% of the loan portfolio in annual equivalent terms). On the other hand, arrear loans and interest previously written off of 14.2 M.€ were recovered (0.07% of the loan portfolio), with the result that impairments after deducting the abovementioned recoveries amounted to 168.3 M.€, which represents 0.84% of the loan portfolio in annualised terms.

Loan portfolio quality Amounts in M.€

	Sep. 12		Sep. 13
	M.€	% of loan portfolio 1)	M.€	% of loan portfolio 1)
Loan impairments	213.4	0.97%	182.5	0.91%
Recovery of loans and interest in arrears w ritten-off	11.4	0.05%	14.2	0.07%
Loan im pairm ents, after deducting the recovery of loans and interest in arrears w ritten-off	202.0	0.91%	168.3	0.84%

1) A s percentage o f the average balance o f the perfo rming lo ans po rtfo lio . A nnualised figure.

¹⁾ Calculated in accordance with Bank of Portugal Instruction 23 / 2011. For purposes of calculating the non-performing ratio according, the perimeter of the Group subject to the Bank of Portugal supervision is taken into account which results, in the case of BPI, in the recognition of BPI Vida e Pensões using the equity method (whereas in accounting reporting, in accordance with IAS / IFRS, that subsidiary is consolidated in full).

Profitability, efficiency, loan quality and solvency

Consolidated indicators according to the Bank of Portugal Notice 23/2011

	30 Sep. 12	30 Sep. 13
Net operating revenue and results of equity accounted subsidiaries / ATA	2.8%	2.6%
Profit before taxation and minority interests / ATA	0.6%	0.5%
Profit before taxation and minority interests / average shareholders' equity (including minority interests)	23.5%	10.3%
Personnel costs / net operating revenue and results of equity accounted subsidiaries 1	26.3%	33.0%
Operating costs / net operating revenue and results of equity accounted subsidiaries 1	48.4%	57.4%
Loans in arrears for more than 90 days + doubtful loans / loan portfolio (gross)	3.1%	4.0%
Loans in arrears for more than 90 days + doubtful loans, net of accumulated loan impairments / loan portfolio (net)	0.3%	0.5%
Non-performing loans ratio 2	4.0%	5.1%
Non-performing loans ratio 2, net of accumulated loan impairments / loan portfolio (net)	1.2%	1.6%
Total capital ratio (according to Bank of Portugal rules)	14.8%	14.9% (3)
Tier I (according to Bank of Portugal rules)	14.7%	14.9% (3)
Core Tier I	14.8%	15.1% (3)
Loans (net) to deposits ratio	105%	97%

1) Excluding early-retirement costs.

2) Loans in arrears for more than 90 days + falling-due loans associated + restructured loans

(previously with instalments in arrears for more than 90 days) + insolvencies that have not yet been

included in loans in arrears for more than 90 days.

3) Does not include the result for the 3rd quarter (unaudited) nor the corresponding minority interests.

ATA = Average total assets.

DOMESTIC ACTIVITY RESULTS

Net profit

The net profit from domestic operations for the period January-September 2013 was 10.1 M.€ (55.5 M.€ in the same period last year).

The return on average shareholders' equity¹ allocated to domestic operations (ROE) was 0.7% at the end of September 2013.

Income statement				Amounts in M.€
	Sep.12	Sep.13	Chg. M.€ Sep.12/ Sep.13	Chg.% Sep.12/ Sep.13
Net interest income	302.8	214.6	( 88.3)	(29.1%)
Technical results of insurance contracts	18.1	17.3	( 0.8)	(4.7%)
Commissions and other similar income (net)	217.6	193.9	( 23.7)	(10.9%)
Gains and losses in financial operations	167.0	161.8	( 5.1)	(3.1%)
Operating income and charges	( 9.8)	( 14.9)	( 5.1)	(52.6%)
Net operating revenue	695.8	572.7	( 123.1)	(17.7%)
Personnel costs, excluding non recurring costs	232.6	225.3	( 7.3)	(3.2%)
Outside supplies and services	140.3	138.3	( 2.0)	(1.4%)
Depreciation of fixed assets	15.6	13.8	( 1.8)	(11.4%)
Operating costs, excluding non recurring costs	388.5	377.4	( 11.1)	(2.9%)
Non-recurring costs	( 7.4)	0.8	8.2	110.4%
Operating costs	381.1	378.1	( 3.0)	(0.8%)
Operating profit before provisions	314.7	194.5	( 120.2)	(38.2%)
Recovery of loans w ritten-off	9.4	12.3	2.9	31.4%
Loan provisions and impairments	203.1	175.5	( 27.5)	(13.6%)
Other impairments and provisions	41.6	17.2	( 24.4)	(58.7%)
Profits before taxes	79.4	14.2	( 65.2)	(82.2%)
Corporate income tax	31.2	14.3	( 16.9)	(54.1%)
Equity-accounted results of subsidiaries	8.7	11.4	2.7	31.3%
Minority shareholders' share of profit	1.4	1.1	( 0.3)	(21.1%)
Net Profit	55.5	10.1	( 45.4)	(81.7%)

1 ) Excluding revaluation reserves.

Resources and loans

Resources

Customer deposits increased by 0.9%, from 19.0 Bi.€ in September 2012 to 19.2 Bi.€ in September 2013.

Capitalisation insurance and off-balance sheet resources (unit trust funds, Retirements savings – PPR - and equity savings – PPA - plans) registered a growth of 9.0% and 10.6% yoy, respectively.

Total Customer resources, penalized by the reduction of the amount of retail bonds placed with customers, fell by 2.6% year-on-year, to 25.6 Bi.€.

Customers resources Amounts in M.€

				Chg.%
	Sep.12	Dec. 12	Sep.13	Sep.12/ Sep.13
On-balance sheet resources
Customers' deposits	19 045.9	18 530.2	19 213.8	0.9%
Retail bonds	2 070.1	1 941.7	956.5	(53.8%)
Subtotal	21 115.9	20 471.9	20 170.2	(4.5%)
Capitalisation insurance and PPR (BPI Vida)	2 759.0	2 723.7	3 006.8	9.0%
On-balance sheet resources	23 874.9	23 195.5	23 177.0	(2.9%)
Off-balance sheet resources 1)	2 841.2	2 913.3	3 142.5	10.6%
Total Custom er resources2)	26 326.0	25 610.7	25 642.4	(2.6%)
Note:
Amount of corporate bonds placed	1 127.6	1 127.6	1 194.4

1) Unit trust funds, P P R and P P A .

2) Co rrected fo r do uble co unting.

Loans

The Customer loans portfolio in domestic operations contracted by 2.7% (-0.7 Bi.€), in year-on-year terms.

The Corporate Banking loan portfolio – large and medium-sized companies - declined by 20.1% (-1.1 Bi.€), loans domiciled at the Madrid branch fell by 11.6% (-0.2 Bi.€) and loans to the public sector decreased by 10.6% (-0.2 Bi.€).

On the other hand, BPI Vida e Pensões, the entity which manages the Group's capitalisation insurance, increased the securitised loan portfolio by 1.3 Bi.€ relative to September 2012. This portfolio corresponds essentially to bonds and commercial paper issued by large Portuguese companies.

The loans to individuals and small businesses portfolio presents a year-on-year decline of 5.1% (-0.8 Bi.€), with decreases of 3.1% (-0.4 Bi.€) in mortgage loans and of 13.0% (-0.2 Bi.€) in loans to small businesses.

It is worth noting that within the scope of the agreed transfer of part of the pension liabilities to the social security system, the State undertook to buy from Banco BPI loans advanced to the Public Sector of 0.7 Bi.€, an operation which has not yet taken place.

	Sep.12	Dec. 12	Sep.13	Chg.% Sep.12/ Sep.13
Corporate banking	5 239.3	5 302.2	4 185.5	(20.1%)
Large companies	2 406.7	2 503.7	1 772.3	(26.4%)
Medium-sized companies	2 832.6	2 798.6	2 413.2	(14.8%)
Project Finance - Portugal	1 199.8	1 201.3	1 211.2	1.0%
M adrid branch	1 804.6	1 750.1	1 594.8	(11.6%)
Project Finance	760.6	749.6	733.8	(3.5%)
Corporates	1 044.0	1 000.5	861.0	(17.5%)
Public Sector	2 269.4	2 208.0	2 029.3	(10.6%)
Central Administration	120.2	115.1	109.9	(8.5%)
Regional and local administrations	986.8	916.5	805.2	(18.4%)
State Corporate Sector - in the budget perimeter	187.9	189.8	191.7	2.1%
State Corporate Sector - outside the budget perimeter	893.7	909.9	868.9	(2.8%)
Other Institutional	80.8	76.7	53.6	(33.6%)
Individuals and Sm all Businesse s Banking	14 616.3	14 386.0	13 863.6	(5.1%)
Mortgage loans to individuals	11 845.5	11 739.0	11 475.3	(3.1%)
Consumer credit / other purposes	704.3	677.7	615.8	(12.6%)
Credit Cards	159.3	162.3	152.2	(4.4%)
Car financing	249.1	230.3	177.4	(28.8%)
Small businesses	1 658.0	1 576.8	1 442.9	(13.0%)
BPI Vida	587.4	771.1	1 881.5	220.3%
Loans in arrears net of im pairm ents	113.1	151.9	167.8	48.4%
Other	433.1	492.5	631.1	45.7%
Total	26 262.9	26 263.2	25 564.8	(2.7%)

Loans to Customers Amounts in M.€

Liquidity

At the close of September 2013, the resources raised by BPI from the European Central Bank (ECB) amounted to 4.0 Bi.€, close to the value of the Treasury Bills portfolio held (balance sheet value of 3.5 Bi.€). On the same date, BPI still had 6.2 Bi.€ of additional assets (net of haircuts) capable of being transformed into liquidity via operations with the ECB.

It must also be noted that the refinancing needs for medium and long-term debt up till the end of 2018, net of the maturities of bonds held (excluding the Treasury Bills portfolio previously mentioned), are low (1.1 Bi €) while in 2019 3 Bi.€ of the MLT Eurozone sovereign debt held by BPI in portfolio will be redeemed. Additionally, BPI should reimburse 920 M.€ of CoCo until the end of 2015.

Net operating revenue

Net operating revenue generated by domestic operations decreased by 17.7% (-123.1 M.€) yoy, mainly reflecting the reduction in net interest income by 29.1% (-88.3 M.€) and the fall in commissions by 10.9% (-23.7 M.€). Profits from financial operations amounted to 161.8 M.€ (-3.1% yoy), benefiting from realised capital gains with the sale of bonds during the 1st quarter of the year.

Net interest income continued to be penalised by the following factors:

The contraction in the average margin on sight deposits, a direct consequence of the downward movement in market interest rates (average Euribor 3M fell from 0.61% in the period from January to September 2012 to 0.16% in the period from January to September 2013);
The increase in the average cost of time deposits, the remuneration of which climbed from 1.83% above Euribor in the period from January to September 2012 to 1.87% in the period from January to September 2013. It should be mentioned however that as from the 1st quarter of 2012 the margin on time deposits evidences a relative stability at around 1.9%, falling to 1.83% in the third quarter of 2013;
Cost of the contingent convertible subordinated bonds. In the period from January to September 2013 were recorded 65 M.€ of interest costs relating to those bonds (29.5 M. € from January to September 2012).

Those negative effects were partially offset by the gradual adjustment to the spreads on new loans, above all in the corporate segment, and by the acquisition since the beginning of 2012 of a portfolio of treasury bills, financed with recourse to funding obtained from the ECB.

Commissions (net) were down by 10.9% (-23.7 M.€) year-on-year, which was mainly explained by the reduction in commissions earned from mounting and placing of corporate bonds issues (25.0 M.€ reduction in primary market and capital market commissions, of which 19.8 M.€ in Commercial Banking and 5.2 M.€ in Investment Banking).

It is recalled that in 2012 the Bank placed with its retail Customers base an amount of 1 076 M.€ of bonds issued by Portuguese companies and in 2013 an amount of 67 M.€ relative to one issue. The Bank had a clear leadership among placing institutions with a share of 53% of the total issued since December 2011.

Commercial Banking commissions fell by 13.6% (-23.6 M.€), commissions from Investment Banking by 18.7% (-2.9 M.€), whereas asset management commissions advanced by 9.6% (+2.8 M.€).

Net commissions and fees Amounts in M.€

	30 Sep. 12	30 Sep. 13	Chg. M.€	Chg.%

Commercial banking 1)	173.3	149.6	- 23.6	(13.6%)
Asset management	29.0	31.7	+2.8	9.6%
Investment banking 1)	15.4	12.5	- 2.9	(18.7%)
Total	217.6	193.9	- 23.7	(10.9%)

1) Excluding commissions from unit trust, pension funds and Private Banking, which are presented, in aggregate terms, in the caption "Asset management".

Profits from financial operations in domestic operations totalled 161.8 M.€ from January to September 2013, and include gains of 129.3 M.€ realised in the 1st quarter with the sale of Treasury Bonds acquired in 2012.

Equity-accounted results of subsidiaries

The equity-accounted results of subsidiaries in domestic operations amounted to 11.4 M.€, which corresponds to a year-on-year increase of +2.7 M.€, and is attributable to the positive behaviour of the contribution from Allianz Portugal (+2.7 M.€).

Equity-accounted earnings			Amounts in M.€
	30 Sep. 12	30 Sep. 13	Chg. M.€
Insurance companies	6.4	10.7	+4.3
Allianz Portugal	4.9	7.6	+2.7
Cosec	1.5	3.1	+1.6
Finangeste	0.2	( 1.3)	- 1.4
Unicre	1.7	1.7	- 0.0
Other	0.4	0.3	- 0.1
Total	8.7	11.4	+2.7

Operating costs

Recurring operating costs decreased by 2.9% relative to the same period of 2012 (-11.1 M.€). Nonrecurring costs of 0.8 M.€ in the period from January to September 2013 include costs of 4.1 M. € with early retirements and a gain of 3.3 M.€ resulting from changes in the calculation of the death subsidy¹ .

Recurring personnel costs were down 3.2% (-7.3 M.€) relative to the same period of 2012, which chiefly resulted from the 3.9% reduction (y-o-y) in the average headcount engaged in domestic operations, reflecting in part the execution of early retirement programmes.

Third-party supplies and services registered a 1.4% decline (-2.0 M.€), while depreciation and amortization decreased 11.4% (-1.8 M.€), relative to the same period of 2012.

Operating costs Amounts in M.€

	30 Sep. 12	30 Sep. 13	Chg. M.€	Chg.%
Personnel costs, excluding non-recurring costs	232.6	225.3	- 7.3	(3.2%)
Outside supplies and services	140.3	138.3	- 2.0	(1.4%)
Depreciation of fixed assets	15.6	13.8	- 1.8	(11.4%)
Operating costs, excluding non-recurring costs	388.5	377.4	- 11.1	(2.9%)
Non-recurring costs	-7.4	0.8	+8.2	110.4%
Operating costs	381.1	378.1	- 3.0	(0.8%)
Operating costs as a % of net operating revenue (last 12 months)	62.1%	56.7%
Operating costs as a % of net operating revenue (last 12 months) 1)	70.1%	83.3%

1) Excluding non-recurring impacts in costs and revenues.

The efficiency ratio in domestic operations – operating costs as a percentage of net operating revenue – was situated at 56.7% in the period September 2012 to September 2013 (12 months).

Excluding non-recurring impacts on both costs and income, the efficiency ratio in domestic activity was 83.3% in the last 12 months.

Cost of credit risk

From January to September 2013 loan impairment charges of 175.5 M.€ were recorded in the domestic activity accounts. The indicator loan impairment allowances as a percentage of the loan portfolio's average balance was situated at 0.91% at September 2013, in annualised terms (0.96% in the same period of 2012).

On the other hand, arrear loans and interest of 12.3 M.€ previously written off were recovered (0.06% of the loan portfolio), with the result that impairments after deducting the abovementioned recoveries amounted to 163.2 M.€ from January to September 2013, which represents 0.85% of the loan portfolio in annualized terms.

1) Following the publication of Decree-Law 13/2013 of 25 January, which gave rise to a decrease in liabilities of 3 M.€.

Credit risk cost Amounts in M.€

	Sep.12		Sep.13
	M.€	% of loan portfolio 1)	M.€	% of loan portfolio 1)
Loan impairments	203.1	0.96%	175.5	0.91%
Recovery of loans and interest in arrears written-off	9.4	0.05%	12.3	0.06%
Loan impairments, after deducting the recovery of loans and interest in arrears written-off	193.7	0.91%	163.2	0.85%

1) As percentage of the average balance of the performing loans portfolio. Annualised figure.

Quality of the loan portfolio

At 30 September 2013, the ratio of Customer loans in arrears for more than 90 days stood at 3.6% in the domestic operations' accounts.

Cover for loans in arrears for more than 90 days by accumulated impairment allowances in the balance sheet (without considering cover from associated guarantees) was situated at 90% in September 2013.

The credit at risk ratio, calculated in accordance with Bank of Portugal1) Instruction 23/2011 was 5.0% on that date. The accumulated impairment allowances in the balance sheet represented 70% of the credit at risk.

Loans in arrears for more than 90 days, falling due loans associated, credit at risk and loan impairments

	Sep.12		Dec.12		Sep.13
	M.€	% of loan portfolio1)	M.€	% of loan portfolio1)	M.€	% of loan portfolio1)
Loans in arrears (+90 days)	771.1	2.9%	838.8	3.1%	956.3	3.6%
Credit at risk (Instruction 23/2011 BoP)	1 023.5	3.9%	1 082.5	4.1%	1 228.6	5.0%
Loans impairments (in the balance sheet)	731.3	2.7%	745.4	2.8%	863.9	3.3%
Write offs (in the period)	33.3		65.5		35.2
Note:
Gross loan portfolio	26 961.3		26 973.4		26 389.5

1) As % of the gross loan portfolio

The following table details by major credit segments the credit at risk ratio, calculated in accordance with Bank of Portugal Instruction 23/201.

The increase in credit at risk in absolute value relative to September 2012 was explained by the deterioration in the corporate segment. In the individuals and small businesses segment the credit at risk registers a stabilization.

1) For purposes of calculating the credit at risk ratio (non-performing ratio), the perimeter of the Group subject to the Bank of Portugal supervision is taken into account which results, in the case of BPI, in the recognition of BPI Vida e Pensões using the equity method (whereas in accounting reporting, in accordance with IAS / IFRS, that subsidiary is consolidated in full).

	Sep. 12		Dec. 12		Sep. 13
	M.€	% of loan portfolio 1)	M.€	% of loan portfolio 1)	M.€	% of loan portfolio 1)
Corporate banking	406.1	3.7%	455.0	4.2%	612.3	6.4%
Individuals Banking	610.5	4.0%	620.7	4.2%	611.7	4.3%
Mortgage loans	397.9	3.3%	411.5	3.4%	392.4	3.3%
Other loans to individuals	47.0	4.1%	45.6	4.1%	47.5	4.8%
Small businesses	165.7	9.2%	163.7	9.5%	171.7	10.8%
Other	6.8	1.6%	6.8	1.4%	4.7	0.8%
Domestic activity	1 023.5	3.9%	1 082.5	4.1%	1 228.6	5.0%

Credit at risk ratios (according to the Bank of Portugal Instruction 23/2011)

1) As % of the gross loan portfolio

Impairments for foreclosure properties

At 30 September 2013 the accumulated amount of impairment allowances for foreclosed properties amounted to 73.7 M.€, corresponding to 42.7% of their balance sheet value of 172.8 M.€.

Real estate loans recovery at 30 September 2013 Amounts in M.€

	Gross value	Coverage by impairments		Net	Appraisal
		Amount	%	value
Mortgage	65.6	29.6	45.0%	36.1	79.6
Other	107.2	44.2	41.2%	63.1	95.9
Total	172.8	73.7	42.7%	99.1	175.6

Employee pension liabilities

At 30 September 2013 BPI's pension liabilities amounted to 954.4 M.€ and are 112.5% covered by the pension fund.

Financing of pension liabilities Amounts in M.€

	30 Sep.12	31 Dec.12	30 Sep.13
Pension obligations	821.6	937.1	954.4
Pension funds	925.9	987.4	1 074.1
Financing surplus	104.2	50.3	119.6
Cover of pension obligations	112.7%	105.4%	112.5%
Total prudential corridor	128.8	97.1	105.8
Total actuarial deviations1)	( 61.8)	( 89.4)	( 23.1)
Available margin in the corridor	67.1	7.7	82.6
Deviations with impact in regulatory capital (outside the prudential corridor)	0.0	0.0	0.0
Pension fund return2)	11.9%	20.0%	10.1%

1) At the end of 2011, BPI adopted the method of recognizing actuarial gains and losses directly in Shareholders' equity (OCI - Other Comprehensive Income), in accordance with the revision of IAS19 which becomes mandatory from 1 Jan. 2013. At 30 September 2013, the negative actuarial deviations of 23.1 M.€ are recognised in shareholders' equity.

2) Year-to-date non-annualised return.

From January to September 2013, the Bank's pension funds registered a non-annualised return of 10.1%.

It should be pointed out that, up till the end of September 2013, the actual return achieved by Banco BPI's pension fund since its creation in 1991 was 9.2% per annum, and that in the last ten, five and three years, the actual annual returns were 6.8%, 6.6% and 7.6%, respectively.

With effect from 1 January 2013, the pension fund's assumed return, of 4.5%, is the same as the average discount rate1 equivalent to the use of the discount rates of 4.83% and 4.00% for the population of current employees and retired employees, respectively.

1) The amount of pension liabilities that result from the use of discount rates for current and retirees employees of 4.83% and 4.00%, respectively, is similar to the one obtained in the case a unique global discount rate of 4.5% was used for the total population.

Actuarial assumptions

	Dec.11	Jun.12	Dec.12	Sep.13
Discount rate - current employees	5.83%	5.83%	4.83%	4.83%
Discount rate - retirees	5.00%	5.00%	4.00%	4.00%
Salary growth rate	2.00%	2.00%	1.50%	1.50%
Pensions growth rate	1.25%	1.25%	1.00%	1.00%
Expected pension fund rate of return	5.50%	5.50%	5.50%	4.50%
Mortality table	TV 73/77-M – 1 year (1)
	TV 88/ 90-W – 1 year (1)

1) Beneficiaries were assumed to be one year younger than their actual age, that procedure translating into a higher life expectancy.

INTERNATIONAL ACTIVITY RESULTS

Net profit

The international activity's net profit stood at 62.6 M.€ in the period January-September 2013 (+1.6% over the 61.6 M.€ obtained in the same period last year).

BFA's contribution to the Group's consolidated profit, which corresponds to a 50.1% appropriation of BFA's net profit by BPI, has totalled 58.9 M.€1 , 3.6% higher than the contribution in the same period of last year (56.9 M.€). Minority interests of 62.7 M.€ were recognised in BFA's net profit (60.6 M.€ in the same period of 2012).

The contribution to the consolidated net profit of the 30% participating interest in BCI (Mozambique), which is equity-accounted, stood at 5.7 M.€ (5.9 M.€ from January to September 2013).

BFA's return on the average Shareholders' equity (individual accounts) stood at 28.9% from January to September 2013 and BCI's return on the average Shareholders' equity reached 19.2%.

The return on the average Shareholders' equity allocated to the international activity, after consolidation adjustments, stood at 24.9% from January to September 2013.

Income statement			Amounts in M.€
	Sep.12	Sep.13	Chg. M .€ Sep.12/	Chg.% Sep.12/
			Sep.13	Sep.13
Net interest income	137.1	140.4	3.3	2.4%
Technical results of insurance contracts
Commissions and other similar income (net)	37.5	40.8	3.2	8.6%
Gains and losses in financial operations	55.0	67.0	12.0	21.8%
Operating income and charges	0.1	( 1.0)	( 1.1)	#######
Net operating revenue	229.8	247.3	17.5	7.6%
Personnel costs	47.5	50.1	2.7	5.6%
Outside supplies and services	42.0	42.6	0.6	1.3%
Depreciation of fixed assets	9.4	9.9	0.4	4.7%
Operating costs	99.0	102.6	3.7	3.7%
Operating profit before provisions	130.8	144.6	13.8	10.6%
Recovery of loans w ritten-off	2.0	1.8	( 0.1)	(7.5%)
Loan provisions and impairments	10.3	6.9	( 3.4)	(32.8%)
Other impairments and provisions	2.3	2.3	( 0.1)	(2.4%)
Profits before taxes	120.2	137.3	17.1	14.2%
Corporate income tax	4.5	18.2	13.7	303.5%
Equity-accounted results of subsidiaries	6.5	6.2	( 0.3)	(4.2%)
Minority shareholders' share of profit	60.6	62.7	2.2	3.6%
Net Profit	61.6	62.6	1.0	1.6%

1) Contribution of BFA to the Group's consolidated profit, net of taxes on dividends.

Customer resources and loans

Total Customer resources in the international activity, measured in euro (consolidation currency), have increased 7.4%1 , reaching 5 509.0 M.€ in September 2013.

Customers resources				Amounts in M.€
	Sep.12	Dec. 12	Sep.13	Chg.% Sep.12/ Sep.13
Sight deposits	2 632.1	2 808.6	2 989.7	13.6%
Term deposits	2 497.2	2 459.1	2 519.3	0.9%
Total	5 129.3	5 267.7	5 509.0	7.4%

BFA's market share in deposits reached 15.8% in August 2013, granting it the second post in the Angolan market ranking.

The loans to Customers portfolio, expressed in euro, decreased 9.2%1), from 1 177.0 M.€ in September 2012, to 1 068.9 M.€ in September 2013.

Loans to Customers Amounts in M.€

	Sep.12	Dec. 12	Sep.13	Chg.% Sep.12/ Sep.13
Performing loans	1 190.8	1 091.9	1 081.7	(9.2%)
Loans in arrears	63.3	55.2	57.6	(9.1%)
Loan impairments	( 85.9)	( 72.9)	( 77.4)	(9.9%)
Interests and other	8.7	8.0	7.1	(18.4%)
Total	1 177.0	1 082.3	1 068.9	(9.2%)
Guarantees	321.5	317.7	211.5	(34.2%)

Securities portfolio

At 30 September 2013, BFA's securities portfolio totalled 2 018 M.€, or 32% of the Bank's assets. The portfolio of short-term securities, comprising Treasury Bills and Central Bank Securities, amounted to 413 M.€ at the end of September (-258 M.€ relative to September 2012) and the Treasury Bonds portfolio amounted to 1 602 M.€ (+149 M.€ relative to September 2012).

Customers

The number of Customers has increased by 12%, from slightly more than 1 million Customers in September 2012 to close to 1.2 million Customers in September 2013.

¹⁾ When expressed in American dollars, Customer resources increased 12.4% yoy and the loan portfolio decreased 5.0% yoy. When analysing the evolution of BFA's commercial activity, one considers the financial figures translated to US dollars, since the largest share of Customer resources and loans is denominated in U.S. dollars, hence changes expressed in that currency are more representative of the business evolution in Angola.

Physical distribution network

The distribution network in Angola increased 5.5% over September 2012. Six new branches and one corporate centre were opened during the first nine months of 2013. At the end of September 2013, the distribution network comprised 150 branches, 8 investment centres and 16 corporate centres, representing a market share of 17.0% as regards the number of branches.

BFA has been implementing an expansion programme, involving the opening of branches, an expressive increase in the headcount and staff skills, the launching of innovative products and services onto the market, and a segmented approach to Customers aiming at meeting and harnessing the huge potential for growth in the Angolan market.

Cards

BFA holds a prominent position in the debit and credit cards with a 23.0% market share in September 2013 in terms of valid debit cards. At the end of September 2013, BFA had 795 thousand valid debit cards (Multicaixa cards) and 16 487 active credit cards (Gold and Classic cards).

Automatic and virtual channels

As regards the automatic and virtual channels, we emphasize the growing use of electronic banking (382 thousand subscribers of BFA NET in September 2013, of which 373 thousand are individuals) and an extensive terminal network with 338 ATM and 4 686 active point-of-sale (POS) terminals connected to the EMIS network, corresponding to market shares of 16.2% (ranking 2nd) and 26.3% (ranking 1st), respectively.

Number of employees

BFA's workforce at the end of September 2013 stood at 2 417 employees, which represents an increase in staff of 172 (+7.7%) relative to the staff complement in September 2012. At the end of September 2013, BFA's workforce represented approximately 28% of the Group's total number of Employees.

Revenues and costs

Net operating revenue in the international activity reached 247.3 M.€ from January to September 2013 (+7.6% over the same period last year).

This growth was explained by the increase in net interest income (+3.3 M.€), profits from financial operations (+12.0 M.€) and commissions (+3.2 M.€).

Operating costs have increased by 3.7% (+3.7 M.€) over the January – September 2012 period.

Personnel costs increased 5.6% (+2.7 M.€) yoy. The investment programme for the expansion of BFA's presence in Angola has been a determinant factor for this evolution.

The ratio "operating costs as percentage of net operating revenue" stood at 40.3% in the period from September 2012 to September 2013 (12 months).

Cost of credit risk

In the international activity, loan provision charges were 6.9 M.€ in the period from January to September 2013, which corresponded to 0.84% of the average performing loan portfolio, in annualised terms.

On the other hand, 1.8 M.€ of loans and interests in arrears, previously written-off, were recovered.

Loan provisions, deducted from recoveries of loans in arrears, have thus reached 5.1 M.€ from January to September 2013, corresponding to 0.62% of the average performing loan portfolio.

Loan portfolio quality Amounts in M.€

		Sep.12	Sep.13
	M.€	% of loan portfolio 1)	M .€	% of loan portfolio 1)
Loan impairments	10.3	1.21%	6.9	0.84%
Recovery of loans and interest in arrears w ritten-off	2.0	0.23%	1.8	0.22%
Loan im pairm ents, after deducting the recovery of loans and interest in arrears w ritten-off	8.3	0.98%	5.1	0.62%

1) A s percentage o f the average balance o f the perfo rming lo ans po rtfo lio .

At 30 September 2013, the ratio of Customer loans in arrears for more than 90 days stood at 4.9%. The provisioning coverage of loans in arrears for more than 90 days stood, at the end of September 2013, at 150%.

Loans in arrears for more than 90 days and impairments

		Sep.12	De c.12		Sep.13
	M.€	% of loan portfolio 1)	M.€	% of loan portfolio 1)	M .€	% of loan portfolio 1)
Loans in arrears (+90 days)	62.0	4.9%	53.0	4.6%	55.7	4.9%
Credit a risk (Instruction 23/2011 BoP)	85.4	6.8%	74.9	6.5%	81.5	7.1%
Loans impairments (in the balance sheet)	92.3	7.3%	79.1	6.8%	83.4	7.3%
Write offs (in the period)			15.9
Note:
Gross loan portfolio	1 262.9		1 155.2		1 146.4

1) A s % o f the gro ss lo an po rtfo lio

Equity-accounted results of subsidiaries

In the international activity, the equity-accounted earnings of subsidiaries amounted to 6.2 M.€ from January to September 2013 (-0.3 M.€ over the same period last year)1 , and refer to the appropriation of 30% of the net profit earned by BCI, a commercial bank operating in Mozambique and in which BPI holds a 30% participating interest.

BCI recorded a 19.0% yoy increase in net total assets. Customer deposits have grown by 19.6% yearon-year, to 1 421 M.€ at the end of September 2013, while the Customer loan portfolio has expanded by 12.7% year-on-year, to 1 053 M.€. BCI market shares in deposits and loans, at the end of September 2013, reached 29.1% and 28.6%, respectively.

At the end of September 2013, BCI served 694 thousand clients (+31% relative to September 2012) through a network of 130 branches (+3 than one year before), representing 24.2% of the total Mozambican banking system distribution network. The staff complement reached 2 093 Employees at 30 September 2013 (+14% than in September 2012).

¹⁾ BCI's total contribution to consolidated net profit was of 5.9 M.€ in the period from January to September 2012 and 5.7 M.€ in the period from January to September 2013, given that, besides the equity-accounted results, deferred tax relating to the distributable earnings of BCI is recorded in the caption "Corporate income tax" (0.6 M.€ from January to September 2012 and 0.5 M.€ from January to September 2013).

CAPITAL AND COCO REDEMPTION

Core Tier I ratio according to Bank of Portugal rules of 15.2%

The Core Tier I ratio attained 15.2% on 30 September 2013, which corresponds to an excess capital of 1 189 M.€ relative to 10% core capital requirement prescribed by the Bank of Portugal.

Even if the CoCo's (in the amount of 920 M.€) were not considered in the core capital, BPI would present a Core Tier I ratio of 11.2%, thus continuing to comply with the above mentioned requirement.

Own funds and own funds requirements Amounts in M.€

	30 Sep. 12	31 Dec. 12	30 Sep. 13
Core capital	3 662.0	3 683.8	3 470.7
Risk weighted assets	24 728.0	24 511.8	22 815.0
Core tier 1 capital ratio	14.8%	15.0%	15.2%

EBA's Recommendation on new capital preservation requirements published on 22 July

On 22 July, following the entry into force of the new capital rules established by CRD IV/CRR, EBA has made public the decision to replace its 2011 Recommendation with new measures on capital preservation. The new rules foresee, among other issues, that Banks maintain the amount of capital in euros necessary to comply with the capital requirements set by the previous EBA recommendation with reference to 30 June 2012, or a lower amount, as long as they comply with a Core Tier 1 capital ratio of 7.0% according to CRD IV "fully implemented" rules (that is, without benefiting from the phasing-in period envisaged in those rules).

Assets review by the BCE

On 23 October, the European Central Bank (ECB) announced the details of the banks' assessment to be conducted in preparation to assume responsibility for banking supervision as part of the single supervisory mechanism. This assessment will be based on a capital benchmark of 8% Core Tier 1, drawing on the definition of CRD IV, including transitional arrangements.

Core Tier I capital ratios according to CRD IV / CRR rules

Core Tier I ratios at 30 September 2013

At 30 September 2013 the Bank presents a Core Tier I ratio of 9.0% calculated according to CRD IV / CRR fully implemented1 rules, which corresponds to an excess capital of 367 M.€ relative to the minimum Core Tier 1 ratio of 4.5% and the capital conservation buffer of 2.5% (ratio of 7%).

The Core Tier I ratio calculated according to CRD IV / CRR rules envisaged for 20141 amounts to 14.0% at 30 September 2013, which corresponds to an excess capital of 1 246 M.€ relative to the benchmark of 8% to be considered in the banks' assessment that the ECB will carry out.

1) Calculations according to BPI's interpretation of CRD IV/CCR rules, based on the information known by the Bank at the current date.

Ongoing core tier 1 capital optimisation measures

BPI has ongoing capital optimisation measures that will raise the excess core tier 1 capital fully implemented by 221 M.€:

Reduction of 100 M.€ in the capital of BPI Vida e Pensões, with a positive impact of 91 M.€ in the excess capital. BPI has obtained the necessary authorization from the Instituto de Seguros de Portugal (Insurance and Pension Funds Supervisory Authority) and the capital reduction is already registered;
Sale of 146 M.€ of perpetual subordinated bonds from European insurance companies with a positive impact of 130 M.€ in the excess capital.

After the aforementioned optimisation measures, the core Tier I ratio CRD IV / CRR fully implemented stands at 10.0%, which corresponds to an excess capital of 588 M € relative to the minimum ratio of 7%.

The core Tier I ratio according to the CRD IV / CRR rules envisaged for 2014, after optimisation measures, stands at 14.3%, which corresponds to an excess capital of 1 420 M.€ relative to the benchmark of 8% considered in the banks' assessment that the ECB will carry out.

Early redemption of additional 588 M.€ of CoCo

After the capital optimisation measures and the redemption of 588 M.€ of CoCo, the proforma core tier 1 ratios would be:

core Tier I CRD IV / CRR fully implemented ratio of 7.0%;
core Tier I ratio according to the CRD IV / CRR rules envisaged for 2014 of 11.8%, which would correspond to an excess capital of 825 M.€ relative to the ECB benchmark of 8%.

Leverage and Liquidity ratios according to CRD IV / CRR rules

At 30 September 2013, the leverage ratio stands at 4.8% according to CRD IV fully implemented rules.

Considering the capital optimisation measures and the redemption of 588 M.€ of CoCo above mentioned, the proforma leverage ratio amounts to 3.7%.

At 30 September 2013, the Liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR) stand at 280% and 114% according to CRD IV Fully Implemented rules.

Recalculation of the EBA's capital buffer under the previous rules revoked on 22 July 2013

According to the previous European Banking Authority's (EBA) Recommendation of 2011 in force until 22 July 2013 and the Bank of Portugal's Notice 5/2012, which considered, for purposes of Core Tier I ratio calculation, the valuation of the sovereign debt exposures at market prices ruling on 30 September 2011, it was calculated for BPI a temporary capital buffer of 1 184 M.€.

If the temporary capital buffer was updated based on Banco BPI's current exposure and at market prices ruling on 25 October 2013, the respective value would decline by 738 M.€, from 1 184 M.€ to 446 M.€.

Recalculation of the capital buffer to sovereign debt exposure Amounts in M.€

M.€		30 Sep. 11				30 Sep. 13				25 Oct. 13
	Nominal value		EBA temporary buffer1)		Nominal value		Recalculation of temporary capital needs for sovereign 1) debt exposure		Nominal value		Recalculation of temporary capital needs for sovereign debt exposure1)
		Securitie s	Derivativ es	Total		Securities	Derivativ es	Total		Securities Derivativ	es	Total
Sovereign bonds (after tax)	4 576	- 822	- 256	-1 078	6 563	- 105	- 279	- 384	6 552	- 41	- 281	- 322
Portugal	2 766	- 582	- 125	- 708	5 253	- 139	- 156	- 294	5 242	- 95	- 156	- 251
Of which
Portug. Govt. Bonds acquired until 31 Dec.11	2 732	- 582	- 125	- 708	1 700	- 137	- 156	- 293	1 700	- 97	- 156	- 253
Treasury bills	34	-	-	-	3 548	- 1		- 1	3 537	2		2
Italy	975	- 66	- 73	- 139	975	15	- 97	- 82	975	29	- 97	- 68
Ireland	355	- 37	- 19	- 56	335	19	- 27	- 8	335	24	- 27	- 3
Greece	480	- 136	- 39	- 175
Local governments	1 058			- 281	810			- 141 2)	810			- 124 3)
Capital buffer for sovereign risk exposures				-1 359				- 525				- 446
Amount recognised in results (Greece)				175
Temporary capital needs				-1 184				- 525				- 446

1) Includes hedging of interest rate risk.

2) Exposures as of 30 Sep.13 and applying average haircuts per maturity estimated by BPI based on 30 Sep.13 market prices.

3) Exposures as of 30 Sep.13 and applying average haircuts per maturity estimated by BPI based on 25 Oct.13 market prices.

Banco BPI, S.A.

Consolidated financial statements as of September 30, 2013 and 2012

CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2013 AND DECEMBER 31, 2012 (Translation of balance sheets originally issued in Portuguese - Note 5)

							( Am ts e oun	ed in t hou xpr ess	ds of Eu ro) san
			30 Se 13 p.		31 De 12 c.
	No tes	Am nts ou bef ore im irm t, pa en de cia tio pre n d an ort isa tio am n	Im irm t, pa en de cia tio pre n d an ort isa tio am n	Ne t	Ne t		No tes	Se 30 13 p.	31 De 12 c.
AS SE TS						ES LIA BIL ITI
Ca sh and de its ral ban ks at c ent pos	4.1	1 35 1 2 61		1 35 1 2 61	1 269 36 5	Re f ce l ba nks ntra sou rce s o	4.1 4	4 137 09 7	4 270 91 8
De its the edi t in stit utio at o pos r cr ns	4.2	4 466 57		4 466 57	4 53 438	Fin ial liab ilitie s h eld fo adi r tr anc ng	4.1 5/4 .4	2 59 643	3 40 164
Fin ial he ld f din nd at f air ets tra anc ass or g a						Re f ot her edi t in stit utio sou rce s o cr ns	4.1 6	1 582 59 9	2 568 42 1
val thr h p rof it o r lo ue oug ss	/4. 4.3 4	1 171 56 5		1 171 56 5	1 111 64 6	Re f cu nd oth deb sto ts sou rce s o me rs a er	4.1 7	25 62 1 0 32	24 62 1 1 39
Fin ial aila ble fo le ets anc ass av r sa	4.5	9 813 44 4	8 7 5 32	9 725 91 2	10 25 2 8 82	De bt s ritie ecu s	4.1 8	2 696 28 7	3 787 62 7
Loa and ad dit ins titu tion to ns van ces cre s	4.6	1 676 60 9	2	1 676 60 7	1 710 72 7	Fin ial liab ilitie lati sfe d a to t ts anc s re ng ran rre sse	4.1 9	1 434 26 0	1 590 98 4
Loa and ad to tom ns van ces cus ers	4.7	27 53 5 8 21	9 02 054	26 63 3 7 67	27 34 5 4 73	He dg ing de riva tive s	4.4	5 94 924	8 14 983
He ld t rity inv atu est nts o m me	4.8	1 39 527		1 39 527	4 45 298	Pro vis ion s	4.2 0	1 23 799	1 38 398
He dg ing de riva tive s	4.4	1 97 669		1 97 669	2 80 737	Te chn ica l pr ovi sio ns	4.2 1	2 515 59 2	2 255 36 4
Oth ible er t set ang as s	4.9	7 20 35 1	5 24 595	1 95 756	2 10 689	Ta x li abi litie s	4.2 2	5 2 7 62	1 20 176
Inta ible set ng as s	4.1 0	1 02 94 1	8 8 0 79	1 4 8 62	1 4 0 17	Co ntin t co rtib le s ubo rdin ate d b ond gen nve s	4.2 3	9 39 919	1 200 27 9
Inv est nts in oci ate d c ies d jo intl me ass om pan an y						Oth sub ord ina ted de bt a nd tici ting bo nds er par pa	4.2 4	1 38 823	1 56 33 1
tro lled titie con en s	4.1 1	2 14 609		2 14 609	2 02 255	Ot her lia bili ties	4.2 5	6 87 274	6 39 153
Ta ts x a sse	4.1 2	5 47 240		5 47 240	6 17 692	Li ilit ies To tal ab		40 78 4 0 11	42 50 3 9 37
Oth ets er ass	4.1 3	7 60 820	7 6 1 99	6 84 62 1	6 50 362	SH AR EH OL DE RS ' E QU ITY
						Su bsc ribe d s har ital e c ap	4.2 7	1 190 00 0	1 190 00 0
						Oth ity ins tru nts er equ me	4.2 9	3 282	8 558
						Re val uat ion re ser ves	4.3 0	( 9) 468 15	( 4) 507 61
						Oth and tain ed rnin er res erv es re ea gs	4.3 1	1 089 64 1	7 86 175
						( Tre har es) asu ry s	4.2 9	( 17 277 )	( 18 272 )
						Co lida ted t in f th e B PI Gro nso ne com e o up	4.4 6	7 2 6 82	2 49 135
						Sh ho lde rs' uit ttri bu tab le t o t he sh ho lde are eq y a are	of BP I rs	1 870 16 9	1 707 98 2
						Min orit inte ts y res	4.3 2	3 56 682	3 52 662
						To tal Sh ho lde rs' Eq uit are y		2 226 85 1	2 060 64 4
To tal As set s		44 68 9 3 23	1 678 46 1	43 01 0 8 62	44 56 4 5 81	Li ilit ies d S ity To tal ab ha reh old ' E an ers qu		43 01 0 8 62	44 56 4 5 81
CE SH MS OF F B AL AN EE T I TE Gu ive nd oth ting lia bili ties nte ent ara es g n a er con O f w hic h:	4.7 /4. 31			2 106 8 75	2 390 35 9
[ Gu and ies ] nte ret ara es su				[ 1 9 42 933 ]	[ 2 1 85 640 ]

The accompanying notes form an integral part of these balance sheets.

[Others] [163 825] [204 719] Commitments 4.31 2 685 513 2 546 845

CONSOLIDATED STATEMENTS OF INCOME

FOR THE PERIODS ENDED SEPTEMBER 30, 2013 AND 2012

⁽Translation of statements originally issued in Portuguese - Note 5) (Amounts expressed in thousands of Euro)

	Notes	3rd quarter 2013	3rd quarter 2012	30 Sep. 13	30 Sep. 12
Interest and similar income		346 320	467 604	1 065 138	1 457 794
Interest and similar expenses		( 234 225)	( 327 160)	( 733 852)	(1 042 570)
Financial margin (narrow sense)	4.34	112 095	140 444	331 286	415 224
Gross margin on unit links	4.35	776	645	2 168	2 047
Income from equity instruments	4.36	68	109	3 248	3 145
Net commission relating to amortised cost	4.37	5 478	6 707	18 317	19 547
Financial margin		118 417	147 905	355 019	439 963
Technical result of insurance contracts	4.38	6 022	5 869	17 269	18 119
Commissions received		78 427	96 567	232 932	253 693
Commissions paid		( 10 606)	( 10 489)	( 30 957)	( 32 281)
Other income, net		9 726	12 240	32 696	33 758
Net commission income	4.39	77 547	98 318	234 671	255 170
Gain and loss on operations at fair value		33 898	42 284	91 041	202 029
Gain and loss on assets available for sale		5 586	320	134 662	18 219
Interest and financial gain and loss with pensions	4.26	1 055	1 313	3 139	1 754
Net income on financial operations	4.40	40 539	43 917	228 842	222 002
Operating income		3 961	3 429	9 127	7 056
Operating expenses		( 8 821)	( 5 347)	( 20 788)	( 12 965)
Other taxes		( 1 412)	( 1 368)	( 4 223)	( 3 756)
Net operating income	4.41	( 6 272)	( 3 286)	( 15 884)	( 9 665)
Operating income from banking activity		236 253	292 723	819 917	925 589
Personnel costs	4.42	( 91 607)	( 93 201)	( 276 161)	( 272 676)
General administrative costs	4.43	( 61 371)	( 62 881)	( 180 904)	( 182 353)
Depreciation and amortisation	4.9/4.10	( 7 802)	( 8 118)	( 23 701)	( 25 045)
Overhead costs		( 160 780)	( 164 200)	( 480 766)	( 480 074)
Recovery of loans, interest and expenses		3 802	3 683	14 170	11 368
Impairment losses and provisions for loans and guarantees, net	4.20	( 31 891)	( 66 946)	( 182 473)	( 213 403)
Impairment losses and other provisions, net	4.20	( 8 880)	( 9 420)	( 19 440)	( 43 933)
Net income before income tax		38 504	55 840	151 408	199 547
Income tax	4.44	( 7 220)	( 8 331)	( 32 502)	( 35 706)
Earnings of associated companies (equity method)	4.45	7 399	6 406	17 590	15 149
Global consolidated net income		38 683	53 915	136 496	178 990
Income attributable to minority interests	4.32	( 24 916)	( 21 911)	( 63 814)	( 61 933)
Consolidated net income of the BPI Group	4.46	13 767	32 004	72 682	117 057
Earnings per share (in Euro)
Basic		0.010	0.026	0.053	0.109
Diluted		0.010	0.026	0.052	0.108

The accompanying notes form an integral part of these statements.

The Accountant The Executive Committee of the Board of Directors

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEFOR THE PERIODS ENDED SEPTEMBER 30, 2013 AND 2012

(Translation of statements originally issued in Portuguese - Note 5) (Amounts expressed in thousands of Euro)

		30 Sep . 13			30 Sep . 12
	Att ribu tab le t o sha reh old ' of the BP I ers Gro up	Att ribu tab le t ino rity o m inte ts res	Tot al	Att ribu tab le t o sha reh old ' of the BP I ers Gro up	Att ribu tab le t ino rity o m inte ts res	Tot al
Con ida t in sol ted ne com e	72 68 2	63 81 4	13 6 4 96	11 7 0 57	61 93 3	17 8 9 90
Inc ot i ncl ude d in the lida ted f in sta tem ent om e n co nso s o com e:
Item s th ill n ot b cla ssif ied inc at w to net e re om e:
Act ial d evia tion uar s	66 54 7		66 54 7	62 44 7		62 44 7
Tax eff ect	( 17 4) 86		( 17 4) 86	( 19 0) 39		( 19 0) 39
	48 68 3	0	48 68 3	43 05 7	0	43 05 7
Item s th be lass ifie d s ubs ly t et i at m ent ay rec equ o n nco me :
For eign han slat ion diffe ge t exc ran ren ces	( 14 9) 30	( 13 8) 91	( 28 7) 22	( 5 93)	1 4 28	83 5
Rev alua tion f fin ial a vail able for le ts a res erv es o anc sse sa	76 66 8		76 66 8	91 7 6 54		91 7 6 54
T ffec t ax e	( 22 90 4)		( 22 90 4)	( 26 4 7 88)		( 26 4 7 88)
Val ion of a f as iate d co nies uat ts o sse soc mpa	2 5 87		2 5 87	24 69 1		24 69 1
T ffec t ax e	( 4 29)		( 4 29)	( 6 971 )		( 6 971 )
	41 61 3	( 13 91 8)	27 69 5	66 9 9 93	1 4 28	67 1 42 1
Inc ot i ncl ude d in the lida ted f in sta tem ent om e n co nso s o com e	90 29 6	( 13 91 8)	76 37 8	71 3 0 50	1 4 28	71 4 4 78
Con sol ida ted reh ive inc co mp ens om e	16 2 9 78	49 89 6	21 2 8 74	83 0 1 07	63 36 1	89 3 4 68

		3rd arte r 20 13 qu			3rd arte r 20 12 qu
	Att ribu tab le t o sha reh old ' of the BP I ers Gro up	Att ribu tab le t ino rity o m inte ts res	Tot al	Att ribu tab le t o sha reh old ' of the BP I ers Gro up	Att ribu tab le t ino rity o m inte ts res	Tot al
Con sol ida ted t in ne com e	13 76 7	24 91 6	38 68 3	32 00 4	21 91 1	53 91 5
Inc ot i ncl ude d in the lida ted f in sta tem ent om e n co nso s o com e:
Item s th ill n ot b cla ssif ied inc at w to net e re om e:
Act ial d evia tion uar s	21 62 7			20 40 4		20 40 4
Tax eff ect	( 3 826 )			( 7 278 )		( 7 278 )
	17 80 1	0	0	13 12 6	0	13 12 6
For eign han slat ion diffe ge t exc ran ren ces	( 13 76 5)	( 14 94 3)	( 28 70 8)	( 9 068 )	( 7 618 )	( 16 68 6)
Rev alua tion f fin ial a vail able for le ts a res erv es o anc sse sa	4 1 17		4 1 17	38 3 8 22		38 3 8 22
T ffec t ax e	( 2 185 )		( 2 185 )	( 11 0 7 88)		( 11 0 7 88)
Val ion of a f as iate d co nies uat ts o sse soc mpa	( 8 37)		( 8 37)	8 2 88		8 2 88
T ffec t ax e	42 7		42 7	( 2 380 )		( 2 380 )
	( 12 24 3)	( 14 94 3)	( 27 18 6)	26 9 8 74	( 7 618 )	26 2 2 56
Inc ot i ncl ude d in the lida ted sta tem ent f in om e n co nso s o com e	5 5 58	( 14 94 3)	( 27 18 6)	28 3 0 00	( 7 618 )	27 5 3 82
Con sol ida ted reh ive inc co mp ens om e	19 32 5	9 9 73	11 49 7	31 5 0 04	14 29 3	32 9 2 97

The accompanying notes form an integral part of these statements.

The Accountant The Executive Committee of the Board of Directors

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE PERIODS ENDED SEPTEMBER 30, 2013 AND 2012

(Translation of statements originally issued in Portuguese - Note 5)

							( Am nts ou ex	d i ho n t pre sse	nd f E ) usa s o uro
		Sh			Ot he r
	Su bs cri be d	are	Ot he ity r e qu	Re lua tio va n	d res erv es an	Tre as ury	t in	Mi rity no	Sh ho lde are
	ita sh l are ca p	ium p rem	ins tru nts me	res erv es	ain ret ed	sh are s	Ne co me	int sts ere	rs ' e ity qu
		t ac co un			rni ea ng s
Ba lan De mb 31 20 11 at ce ce er ,	99 0 0 00	12 8 4 32	8 0 30	( 1 2 51 53 3 )	90 0 3 12	( 21 02 0 )	( 28 4 8 71 )	35 3 0 38	82 2 3 88
Ap iati of t in fo r 2 01 1 to pro pr on ne co me re se rve s					( ) 28 4 8 71		28 4 8 71
Us f s ha miu ativ ine d e ing nt t eta e o re pre m acc ou o c ove r n eg e r arn s		( 2) 128 43			12 8 4 32
Sh ital in are ca p cre ase	20 0 0 00								20 0 0 00
Div ide nd aid efe sha s p on pr ren ce res								( ) 1 0 58	( ) 1 0 58
Div ide nd aid ino rity in to ter est s p m s								( 1) 64 18	( 1) 64 18
Va ria ble Re ion Pr ( RV A) rat mu ne og ram			8 2			1 07 9			1 16 1
Sa le / rch of sh tre pu ase as ury are s					( 6) 62				( 6) 62
Sa le / of efe rch sha pu ase pr ren ce res					7 47			( ) 2 0 76	( ) 1 3 29
Co f B lida tio PI Alt ativ e F d nso n o ern un								( ) 3 1 05	( ) 3 1 05
Co f B riáv lida tio PI Ta Va el Fu nd nso n o xa								( 9) 10 66	( 9) 10 66
Co fo e f f 2 reh siv e i r th irst ni nth 01 2 mp en nco me ne mo s o				65 2 2 73	60 77 7		11 7 0 57	63 36 1	89 3 4 68
Ot he rs					5 6				5 6
Se Ba lan at tem be r 3 0, 20 12 ce p	1 1 90 00 0		8 1 12	( ) 59 9 2 60	80 4 8 27	( 1) 19 94	11 7 0 57	33 5 3 10	1 8 36 10 5
efe Div ide nd aid sha s p on pr ren ce res								( 1) 26	( 1) 26
( A) Va ria ble Re rat ion Pr RV mu ne og ram			4 46			1 66 9			2 115
Sa le / rch of sh tre pu ase as ury are s					( ) 1 1 26				( ) 1 1 26
Sa le / rch of efe sha pu ase pr ren ce res								1 1	1 1
Co lida tio f B PI Alt ativ e F d nso n o ern un								1	1
Co reh siv e i fo r th e la hre ths of 20 12 st t mp en nco me e m on				91 64 6	( 0) 17 53		13 2 0 78	17 60 1	22 3 7 95
Ot he rs					4				4
Ba lan at De mb 31 20 12 ce ce er ,	1 1 90 00 0		8 5 58	( 50 7 6 14)	78 6 1 75	( 18 27 2)	24 9 1 35	35 2 6 62	2 0 60 64 4
Ap iati of t in fo r 2 01 2 t pro pr on ne co me o r ese rve s					24 9 1 35		( 24 9 1 35 )
Div ide nd aid efe sha s p on pr ren ce res								( 70 9)	( 70 9)
Div ide nd aid ino rity in to ter est s p m s								( 51 67 8)	( 51 67 8)
Va ria ble Re ion Pr ( RV A) rat mu ne og ram			( 5 2 76 )			9 95			( 4 2 81 )
Sa le / rch of sh tre pu ase as ury are s					3 50 7				3 50 7
Sa le / rch of efe sha pu ase pr ren ce res								2 7	2 7
Co lida tio f B PI Alt ativ e F d nso n o ern un					2 6			( 88 0)	( 85 4)
Co lida tio f B PI Alt ativ e F d L mb nso n o ern un uxe ou rg								7 32 5	7 32 5
Co reh siv e i fo r th e f irst ni nth f 2 01 3 mp en nco me ne mo s o				39 45 5	50 84 1		72 68 2	49 89 6	21 2 8 74
Ot he rs					( 43 )			3 9	( 4)
Ba lan Se be r 3 0, 20 13 at tem ce p	1 1 90 00 0		3 2 82	( 46 8 1 59 )	1 0 89 64 1	( 17 27 7)	72 68 2	35 6 6 82	2 2 26 85 1

The accompanying notes form an integral part of these statements.

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS ENDED SEPTEMBER 30, 2013 AND 2012

(Translation of statements originally issued in Portuguese - Note 5)

	(Amounts expressed in thousands of Euro)
	30 Sep. 13	30 Sep. 12
Operating activities
Interest, commissions and similar income received	1 923 731	2 074 982
Interest, commissions and similar expenses paid	( 1 226 402)	( 1 201 641)
Recovery of loans and interest in arrears	14 170	11 368
Payments to personnel and suppliers	( 418 683)	( 435 124)
Net cash flow from income and expenses	292 816	449 585
Decrease (increase) in:
Financial assets held for trading, available for sale and held to maturity	1 072 449	( 2 302 174)
Loans and advances to credit institutions	33 729	536 450
Loans and advances to customers	686 514	1 401 437
Other assets	( 65 746)	( 71 339)
Net cash flow from operating assets	1 726 946	( 435 626)
Increase (decrease) in:
Resources of central banks and other credit institutions	( 1 139 020)	2 247 776
Resources of customers	1 266 272	( 9 891)
Financial liabilities held for trading	( 80 521)	( 84 522)
Other liabilities	( 228 576)	147 736
Net cash flow from operating liabilities	( 181 845)	2 301 099
Contributions to the Pension Funds	( 4 520)	( 40 695)
Income tax paid	( 70 227)	( 24 934)
	1 763 170	2 249 429
Investing activities
Purchase of other tangible assets and intangible assets	( 18 672)	( 48 302)
Sale of other tangible assets	70	21 670
Dividends received and other income	9 271	19 460
	( 9 331)	( 7 172)
Financing activities
Liability for assets not derecognised	( 155 701)	( 554 945)
Issuance of contingent convertible subordinated bonds		1 500 000
Redemption of contingent convertible subordinated bonds	( 280 000)	( 200 000)
Issuance of debt securities and subordinated debt	126 334	919 722
Redemption of debt securities	( 1 512 896)	( 3 069 645)
Purchase and sale of own debt securities and subordinated debt	335 212	( 579 165)
Purchase and sale of preference shares		( 1 025)
Interest on contingent convertible subordinated bonds	( 45 380)
Interest on debt securities and subordinated debt	( 78 787)	( 153 627)
Share capital increase		200 000
Dividends paid on preference shares	( 709)	( 1 058)
Dividends paid to minority interests	( 51 678)	( 64 181)
Purchase and sale of treasury shares	( 4 281)	535
	( 1 667 886)	( 2 003 389)
Net increase (decrease) in cash and equivalents	85 953	238 868
Cash and equivalents at the beginning of the period	1 722 717	1 529 469
Cash and equivalents at the end of the period	1 808 670	1 768 337

The accompanying notes form an integral part of these statements.

The Accountant The Executive Committee of the Board of Directors

Alberto Pitôrra President Fernando Ulrich Vice-President António Domingues Members António Farinha Morais José Pena do Amaral Manuel Ferreira da Silva Maria Celeste Hagatong Pedro Bissaia Barreto

Banco BPI, S.A.

Notes to the consolidated financial statements as of September 30, 2013 and 2012

(Unless otherwise indicated, all amounts are expressed in thousands of Euro – t. euro)

1. THE FINANCIAL GROUP

Banco BPI is the central entity of a multi-specialised financial group dedicated to banking, which provides a broad range of banking services and products to companies, institutional investors and private individuals. Banco BPI has been listed on the Stock Exchange since 1986.

The BPI Group started operating in 1981 with the foundation of SPI – Sociedade Portuguesa de Investimentos, S.A.R.L.. By public deed dated December 1984, SPI – Sociedade Portuguesa de Investimentos, S.A.R.L. changed its corporate name to BPI – Banco Português de Investimento, S.A., which was the first private investment bank created after the re-opening, in 1984, of the Portuguese banking sector to private investment. On November 30, 1995 BPI – Banco Português de Investimento, S.A. (BPI Investimentos) was transformed into BPI - SGPS, S.A., which operated exclusively as the BPI Group's holding company, and BPI Investimentos was founded to act as the BPI Group's investment banking company. On December 20, 2002, BPI SGPS, S.A. incorporated, by merger, the net assets and operations of Banco BPI and changed its corporate name to Banco BPI, S.A..

At September 30, 2013 the Group's banking operations were carried out principally through Banco BPI in the commercial banking area and through BPI Investimentos in the investment banking area. The BPI Group is also the holder of a 50.1% participation in Banco de Fomento, S.A. which operates as a commercial bank in Angola.

The vehicles through which the Bank's loan securitisation is carried out are recorded in the consolidated financial statements in accordance with the BPI Group's continuing involvement in these operations, based on the percentage held of the equity piece of the corresponding vehicles.

In 2012 the BPI Group reduced its participation in Fundo BPI Taxa Variável - Fundo de Investimento Aberto de Obrigações de Taxa Variável (Fundo BPI Taxa Variável), a fund managed by BPI Gestão de Activos, to a participation of less than 50%. According to the Group's accounting policy, the investment funds are consolidated only if the Group has control, i.e., when the Group holds more than 50% of the participating units. Thus, the participation in this fund was reclassified to the financial assets available for sale portfolio, and is no longer recorded in accordance with the full consolidation method. In December 2012 Fundo BPI Taxa Variável changed its name to BPI Obrigações Mundiais – Fundo de Investimento Aberto (Fundo BPI Obrigações Mundiais).

In 2012 TC Turismo Capital – SCR, S.A. and Aicep Capital were merged by incorporation into Inovcapital – Sociedade de Capital de Risco, S.A., the corporate name of which was changed to Portugal Capital Ventures – Sociedade de Capital de Risco, S.A. The BPI Group ceased to have participations of 25% in TC Turismo Capital – SCR, S.A. and 4.4% in Inovcapital – Sociedade de Capital de Risco, S.A. and now has a 6.4% participation in Portugal Capital Ventures, that has been recorded in the financial assets available for sale portfolio.

In 2012 the BPI Group dissolved and liquidated Ulissipair ACE, a consortium of companies, 50% of which was held by Banco Português de Investimento, S.A.

In January 2013, the BPI Alternative Fund: Iberian Equities Long/Short Fund (Luxemburgo) was established. On September 30, 2013 the BPI Group held 67.3% of the fund's participating units through Banco Português de Investimento, S.A, the financial statements of the fund being fully consolidated in the financial statements of the BPI Group.

In the first nine months of 2013 the BPI Group increased its participation to 100% of the share capital of BPI Dealer – Sociedade Financeira de Corretagem (Mozambique), through the acquisition of 10.5% of the share capital of that company, previously owned by Banco Comercial e de Investimentos (Mozambique). The corporate name of BPI Dealer – Sociedade Financeira de Corretagem (Mozambique) was changed to BPI Moçambique – Sociedade de Investimento, S.A.

At September 30, 2013 the BPI Group was made up of the following companies:

	Head Office	Sharehol ders' equity	Total assets	N et income (loss) for the	Direct partici pation	Consolidation / Recognition method
Banks
Banco BPI, S.A.	Portugal	1 290 117	41 846 645	16 817
Banco Português de Investimento, S.A.	Portugal	62 772	1 897 406	2 465	100.00%	100.00% Full Consolidation
Banco Comercial e de Investimentos, S.A.R.L.	M ozambique	139 885	1 973 813	19 511	29.70%	30.00% Equity M ethod
Banco de Fomento Angola, S.A.	Angola	582 811	6 391 027	121 429	50.08%	50.10% Full Consolidation
Banco BPI Cayman, Ltd.	Cayman Islands	157 612	185 452	1 360		100.00% Full Consolidation
Specialised loan companies
BPI Locação de Equipamentos, Lda	Portugal	8 083	8 451	37	100.00%	100.00% Full Consolidation
Asset management companies and dealers
BPI M oçambique – Sociedade de Investimento, S.A.	M ozambique	6	514	( 655)	96.54%	100.00% Full Consolidation
BPI Gestão de Activos – Gestão de Fundos de
Investimento M obiliários, S.A	Portugal	15 839	25 779	5 320	100.00%	100.00% Full Consolidation
BPI – Global Investment Fund M anagement Company, S.A.	Luxembourg	953	1 706	478	100.00%	100.00% Full Consolidation
BPI (Suisse), S.A.	Switzerland	8 366	9 896	3 404		99.90% Full Consolidation
BPI Alternative Fund: Iberian Equities Long/Short Fund	Portugal	57 888	62 101	1 607		87.57% Full Consolidation
BPI Alternative Fund: Iberian Equities Long/Short Fund (Lux)	Luxembourg	22 689	23 714	297		67.29% Full Consolidation
Venture capital companies
BPI Private Equity - Sociedade de Capital de Risco, S.A.	Portugal	26 615	28 900	534	100.00%	100.00% Full Consolidation
Inter-Risco – Sociedade de Capital de Risco, S.A.	Portugal	1 014	2 170	517		49.00% Equity M ethod
Insurance companies
BPI Vida e Pensões – Companhia de Seguros, S.A.	Portugal	216 512	3 306 332	47 988	100.00%	100.00% Full Consolidation
Cosec – Companhia de Seguros de Crédito, S.A.	Portugal	50 172	121 579	6 367	50.00%	50.00% Equity M ethod
Companhia de Seguros Allianz Portugal, S.A.	Portugal	255 405	1 192 972	21 808	35.00%	35.00% Equity M ethod
Other
BPI Capital Finance Ltd. 1	Cayman Islands	53 656	53 661	805	100.00%	100.00% Full Consolidation
BPI Capital Africa (Proprietary) Limited	South Africa	( 2 091)	1 183	( 1 292)		100.00% Full Consolidation
BPI, Inc.	U.S.A.	1 081	3 942	10	100.00%	100.00% Full Consolidation
BPI M adeira, SGPS, Unipessoal, S.A.	Portugal	152 927	156 281	88	100.00%	100.00% Full Consolidation
Finangeste – Empresa Financeira de Gestão
e Desenvolvimento, S.A.	Portugal	77 151	79 451	( 3 828)	32.78%	32.78% Equity M ethod
Unicre - Instituição Financeira de Crédito, S.A.	Portugal	90 483	308 384	10 863	20.65%	21.01% Equity M ethod

Note: Unless otherwise indicated, all amounts are as of September 30, 2013 (accounting balances before consolidation adjustments).

1 Share capital is made up of 5 000 ordinary shares of 1 Euro each, and 53 427 000 non-voting preference shares of 1 euro each. The BPI Group's effective participation corresponds to 0.009% considering the preference shares.

2. BASIS OF PRESENTATION AND MAIN ACCOUNTING POLICIES

A) BASIS OF PRESENTATION

The consolidated financial statements were prepared from the accounting records of Banco BPI and its subsidiary and associated companies in conformity with International Accounting Standards/International Financial Reporting Standards (IAS/IFRS), as endorsed by the European Union in accordance with Regulation (EC) 1606/2002 of July 19 of the European Parliament and Council, incorporated into Portuguese legislation through Bank of Portugal Notice 1/2005 of February 21.

B) MAIN ACCOUNTING POLICIES

The accounting policies adopted by the BPI Group are consistent with those used in the preparation of the consolidated financial statements for the period ended June 30, 2013.

3. SEGMENT REPORTING

The BPI Group's segment reporting is made up as follows:

Domestic operations: consist of banking services provided to domestic customers, including members of emigrant communities and subsidiaries of Portuguese companies, and include:
o Commercial Banking
o Investment Banking
o Equity investments and others
International operations: Consist of the operations in Angola carried out by Banco de Fomento Angola, S.A, in Mozambique by Banco Comercial de Investimentos, S.A.R.L. and BPI Moçambique – Sociedade de Investimento, S.A. and in South Africa by BPI Capital Africa (Proprietary) Limited.

Commercial banking

The BPI Group's operations are focused mainly on commercial banking. Commercial banking includes:

Retail banking Retail banking includes commercial operations with private clients, businesses and sole traders with turnover of up to 2.5 million euro through a multi-channel distribution network made up of commercial branches, investment centres, home banking services (BPI Net), telephone banking (BPI Directo), specialised branches and a network of external promoters.
Corporate banking Corporate banking includes commercial operations with private, public and municipal companies and public sector organisations (including the Central and Local Administration), as well as Foundations and Associations. Corporate banking also includes Project Finance and Public-Private Partnership operations in the commercial promotion area, structuring and organising financial operations and consultancy services relating to this area.

Investment banking

Investment banking covers the following business areas:

Brokerage includes brokerage (purchase and sale of securities) on account of customers;
Private Banking Private Banking is responsible for implementing strategies and investment proposals presented to customers and managing all or part of their financial assets under management mandates given to the Bank. In addition, Private Banking provides asset management, tax information and business consulting services.
Corporate finance This includes rendering consultancy services relating to the analysis of investment projects and decisions, market privatisation operations and the structuring of merger and acquisition processes.

Equity investments and others

This segment includes essentially Financial Investments and Private Equity activities. The BPI Group Private Equity area invests essentially in unlisted companies with the following objectives: the development of new products and technologies, financing of investments in working capital, acquisitions and the strengthening of financial autonomy.

This segment also includes the Bank's residual activity, such segments representing individually less than 10% of total income, net profit and the Group's assets.

Inter-segment operations are presented based on the effective conditions of the operations and application of the accounting policies used to prepare the BPI Group's consolidated financial statements.

The Bank has not identified other business segments under IFRS 8 other than those identified under IAS 14. The reports used by Management consist essentially of accounting information based on IFRS.

The BPI Group's balance sheet as of September 30, 2013 and investments made in tangible and intangible assets during the period, by segment, are as follows:

	Do sti ion rat me c o pe s					Int ati ern	al on op	tio era ns
	Co ial mm erc ban kin g	Inv est nt me ban kin g	Equ ity inv d est nts me an oth ers	Inte ent r se gm rati ope ons	To tal	An la go	Oth ers	To tal	Inte ent r se gm rati ope ons	BP I G rou p
AS SE TS
Ca sh and de its at C ral Ba nks ent pos	33 8 7 43	14 9			33 8 8 92	1 0 12 3 68	1	1 0 12 3 69		1 3 51 2 61
Loa and ad oth red it in stit utio ble de nd to ns van ces er c ns rep aya on ma	43 0 8 86	46 170	4 265	( ) 117 606	36 3 7 15	10 7 3 72	4	10 7 3 76	( 25) 13 6	45 7 4 66
Fin ial a ts h eld fo din nd r tra anc sse g a
fai lue thr h p rof it o r lo at r va oug ss	91 0 7 35	13 9 2 36		( 22 766 )	1 0 27 205	14 4 3 01	9 5	14 4 3 60		1 17 1 56 5
Fin ial a vai lab le f ale ts a anc sse or s	7 7 72 453	26 211	52 08 6	1 6 47	7 8 52 397	1 8 73 515		1 8 73 515		9 7 25 912
Loa and ad dit ins titu tio to ns van ces cre ns	1 44 5 2 11	1 6 09 867	2 894	( 2 13 8 5 70)	91 9 4 02	1 9 03 807	9 60	1 9 04 767	( 1 14 7 5 62)	1 6 76 607
Loa and ad to tom ns van ces cus ers	25 37 8 3 22	21 2 5 56		( 26 054 )	25 56 4 8 24	1 0 68 943		1 0 68 943		26 63 3 7 67
He ld t rity inv atu est nts o m me	16 8 8 84	11 684		( 41 0 41)	13 9 5 27					13 9 5 27
He dg ing de riva tive s	20 0 2 36	2 57		( 2 8 24)	19 7 6 69					19 7 6 69
Oth er t ible set ang as s	67 06 3	1 5 32	1		68 59 6	12 6 6 98	4 62	12 7 16 0		19 5 7 56
Inta ible set ng as s	12 55 7	5 8			12 615	2 246	1	2 247		14 86 2
Inv est nt i cia ted ani and jo intl ntro lled titie me n a sso co mp es y co en s	89 393		83 25 0		17 2 6 43		41 96 6	41 96 6		21 4 6 09
Tax set as s	54 3 0 84	3 420	( 05) 2 0		54 4 4 99	2 666	7 5	2 741		54 7 2 40
Oth ts er a sse	73 3 3 44	40 70 7	16 4	( 0) 100 37	67 3 8 45	13 87 2	2 37	14 109	( 33) 3 3	68 4 6 21
T O T A L A SS ET S	38 09 0 9 11	2 09 1 8 47	14 0 6 55	( 2 4 47 58 4)	37 87 5 8 29	6 25 5 7 88	4 3 7 65	6 29 9 5 53	( 1 16 4 5 20 )	43 01 0 8 62
LIA BIL ITI ES
Re f ce l ba nks ntra sou rce s o	4 1 37 097				4 1 37 097					4 1 37 097
Fin ial l iab ilitie s h eld fo din r tra anc g	26 0 0 89	19 85 0		( 21 1 83)	25 8 7 56	8 87		8 87		25 9 6 43
Re f ot her dit ins titu tio sou rce s o cre ns	4 3 84 896	19 60 8	31 151	( 1 69 2 9 78)	2 7 42 677	6 93	4 15	1 1 08	( 1 16 1 18 6)	1 5 82 599
Re f cu nd oth er d ebt sto sou rce s o me rs a s	18 894 80 7	1 7 46 712		( 5 92 033 )	20 04 9 4 86	71 5 47 5 5		71 5 47 5 5	( 1)	25 62 1 03 2
De bt s ritie ecu s	2 7 43 010			( 46 723 )	2 6 96 287					2 6 96 287
Fin ial l iab ilitie lati sfe rred to t set anc s re ng ran as s	1 4 34 260				1 4 34 260					1 4 34 260
He dg ing de riva tive s	59 6 0 59	( 2)		( 1 13 3)	59 4 9 24					59 4 9 24
Pro vis ion s	99 76 7	18 2			99 94 9	23 85 0		23 85 0		12 3 7 99
Tec hni cal vis ion pro s	2 3 52 823	16 2 7 69			2 5 15 5 92					2 5 15 5 92
Tax lia bilit ies	45 20 2	2 263	( 5) 1 56		45 90 0	3 954	2 908	6 862		52 76 2
Co ntin t co rtib le s ubo rdin ate d b ond gen nve s	93 9 9 19				93 9 9 19					93 9 9 19
Oth ubo rdin ate d d ebt d p arti cip atin bon ds er s an g	20 0 7 97	3 887		( ) 65 861	13 8 8 23					13 8 8 23
Oth er l iab ilitie s	59 3 8 43	42 68 3	2 285	( ) 27 673	61 1 13 8	76 00 0	3 469	79 46 9	( 33) 3 3	68 7 2 74
T O T A L L IA B ILI T IE S	36 68 2 5 69	1 9 97 95 2	3 1 8 71	( 2 4 47 58 4)	36 26 4 8 08	5 67 6 9 31	6 79 2	5 68 3 7 23	( 1 16 4 5 20 )	40 78 4 0 11
SH AR EH OL DE RS ' E QU ITY
Sha reh old ' eq uity ribu tab le t o th har eho lde f B PI att ers e s rs o	1 3 106 57	79 27 2	10 8 7 84		1 5 45 162	28 8 0 34	36 97 3	32 5 0 07		1 8 70 169
M in orit inte t y res	51 23 6	14 62 3			65 85 9	29 0 8 23		29 0 8 23		35 6 6 82
L S S' T O T A H A R E H O LD ER EQ UIT Y	1 4 08 34 2	9 3 8 95	10 8 7 84		1 6 11 0 21	5 78 85 7	3 6 9 73	6 15 83 0		2 22 6 8 51
S A SH R S QU T O T A L L IA B ILI T IE N D A R EH OL D E ' E IT Y	38 09 0 9 11	2 09 1 8 47	14 0 6 55	( 4) 2 4 47 58	37 87 5 8 29	6 25 5 7 88	4 3 7 65	6 29 9 5 53	( ) 1 16 4 5 20	43 01 0 8 62

in Inv tm ts de es en ma :
Pro ty per	203				2 03	8 38		8 38		1 0 41
Equ ipm ent d o the r ta ible set an ng as s	1 82 8	2 6			1 8 54	11 326	8 1	11 407		13 26 1
Inta ible set ng as s	3 0 76	2 9			3 105	1 2 67		1 2 67		4 372

Banco BPI | 3rd quarter 2013 | Notes to the consolidated financial statements 39

The BPI Group's income statement for the period ended September 30, 2013, by segment, is as follows:

	Do sti ion rat me c o pe s					Int ati ern	al on op	tio era ns	Inte r
	Co ial mm erc ban kin g	Inv est nt me ban kin g	Eq uity inv est nts d me an oth ers	Inte ent r se gm tio op era ns	To tal	An la go	Ot her s	To tal	nt seg me tio op era ns	BP I G ro up
F in cia l m in (na ) an arg rro w s en se	19 1 3 68	8 96	( 1 0 76 )		19 1 1 88	14 0 2 88	( 190 )	14 0 0 98		3 31 28 6
Gro in o nit link ss ma rg n u s	6 29	1 5 39			2 168					2 168
Inc e fr uity ins tru nts om om eq me	1 3 18	8 5	1 8 45		3 248					3 248
Ne iss ion rel atin ise d c t co to ort t mm g am os	17 97 1				17 97 1	3 46		3 46		18 317
F in cia l m in an arg	2 11 28 6	2 52 0	7 69		2 14 57 5	14 0 6 34	( ) 190	14 0 4 44		3 55 01 9
f in Te chn ica l re sul t o tra cts sur anc e c on	17 0 60	2 09			17 26 9					17 26 9
Co iss ion cei ved mm s re	19 3 3 36	33 123		( 19 8 87)	20 6 5 72	27 149	14 9	27 29 8	( 938 )	23 2 9 32
Co iss ion aid mm s p	( 38 637 )	( 40) 7 7	( 7)	19 88 7	( 26 497 )	( 5 3 98)		( 5 3 98)	9 38	( 30 957 )
Oth er i t nco me , ne	13 78 0	5 8			13 83 8	18 85 8		18 85 8		32 69 6
N e mi io n in t c o m ss co me	16 8 4 79	5 4 2 41	( 7)		19 3 9 13	4 0 6 09	1 49	58 4 0 7		2 34 67 1
Ga in a nd los atio at f air val s o n o per ns ue	18 55 0	5 463			24 013	67 02 8		67 02 8		91 04 1
Ga in a nd los ts a vai lab le f sal s o n a sse or e	134 62 4	3 8			13 4 6 62					13 4 6 62
Inte d fi cia l ga in a nd los ith sio t an res nan s w pen ns	3 086	3 5			3 139					3 139
N e t in n f ina ial tio co me o nc o p era ns	15 6 2 60	5 55 4			16 1 8 14	6 7 0 28		6 7 0 28		2 28 84 2
Op ting inc era om e	8 42 1	5 7			8 478	6 28	2 1	6 49		9 127
Op ting era ex pen ses	( 18 9 85)	( 1 19 5)			( 20 180 )	( 607 )	( 1)	( 608 )		( 20 788 )
Oth er t axe s	( 05) 2 7	( ) 505			( 10) 3 2	( ) 990	( 23)	( 3) 1 01		( 23) 4 2
N e ing in t o rat pe co me	( 13 26 9)	( 1 6 43 )			( 14 912 )	( 96 9)	( 3)	( 97 2)		( 15 88 4)
tin inc e f ing tiv ity Op ba nk era g o m ro m ac	5 39 81 6	3 2 0 81	7 62		5 72 65 9	2 47 30 2	( ) 44	2 47 25 8		8 19 917
Pe l co sts rso nne	( 8) 210 79	( 14) 15 1	( ) 127		( 9) 226 03	( ) 48 673	( 9) 1 44	( ) 50 122		( 1) 276 16
Ge al a dm inis tive tra sts ner co	( 129 35 1)	( 8 9 24)	( 22)		( 138 29 7)	( 42 164 )	( 443 )	( 42 607 )		( 180 90 4)
De cia tio nd isa tio ort pre n a am n	( 12 8 66)	( 946 )			( 13 8 12)	( 9 7 94)	( 95)	( 9 8 89)		( 23 70 1)
Ov erh d c ts ea o s	( 35 3 0 15)	( 24 98 4)	( 149 )		( 37 8 1 48 )	( 100 63 1)	( 1 9 87 )	( 102 61 8)		( 48 0 7 66 )
Re f lo inte d e t an co ve ry o ans res xpe nse s ,	12 34 7	3			12 35 0	1 8 20		1 8 20		14 170
Imp airm los d p isio for loa and ent nte t ses an rov ns ns gu ara es, ne	( 175 92 0)	3 73			( 175 54 7)	( 6 9 26)		( 6 9 26)		( 182 47 3)
Imp airm ent los d o the isio t ses an r pr ov ns, ne	( 99) 17 2	( 26)	16 2		( 63) 17 1	( 77) 2 2		( 77) 2 2		( 40) 19 4
N e t in be fo inc e t co me re o m ax	5 92 9	7 44 7	75 7		15 14 1	13 9 2 88	( 31) 2 0	57 13 7 2		15 1 4 08
Inc e ta om x	( 10 9 71)	( 3 2 17)	( 134 )		( 14 3 22)	( 17 6 51)	( 529 )	( 18 1 80)		( 32 502 )
of (eq d) Ea rnin iate d c ies uity tho gs ass oc om pan me	7 632		3 74 1		11 373		6 217	6 217		17 59 0
Gl o b al o li da ted t in co ns ne co me	59 2 0	4 23 0	4 38 2		1 1 2 02	12 1 6 37	65 3 7	5 2 12 94		13 6 4 96
Inc ttri but abl ino rity int e to st om e a m ere	( ) 774	( ) 300			( 4) 1 07	( ) 62 740		( ) 62 740		( ) 63 814
C o o li da ted t in o f th e B P I G ns ne co me ro up	1 816	3 93 0	4 38 2		10 12 8	5 8 8 97	3 65 7	6 2 5 54		2 6 82 7
Ca sh flo fte r ta w a xes	20 7 9 01	4 529	4 220		21 6 6 50	77 89 4	3 752	81 64 6		29 8 2 96

The BPI Group's balance sheet as of December 31, 2012 and investments made in tangible and intangible assets during the year, by segment, are as follows:

	Do sti ion rat me c o pe s					Int ati ern	al on op	tio era ns
	Co ial mm erc ban kin g	Inv est nt me ban kin g	Equ ity inv d est nts me an oth ers	Inte ent r se gm rati ope ons	To tal	An la go	Oth ers	To tal	Inte ent r se gm rati ope ons	BP I G rou p
AS SE TS
Ca at C sh and de its ent ral Ba nks pos	23 3 0 53	16 5			23 3 2 18	1 0 36 147		1 0 36 147		1 2 69 365
Loa and ad oth red it in stit utio ble de nd to ns van ces er c ns rep aya on ma	51 8 2 07	77 88 7	4 703	( 222 42 1)	37 8 3 76	94 47 2	7	94 47 9	( 19 4 17)	45 3 4 38
Fin ial a ts h eld fo din nd r tra anc sse g a
fai lue thr h p rof it o r lo at r va ou g ss	86 2 0 43	12 7 6 21		( 31 8 32)	95 7 8 32	15 3 7 53	6 1	15 3 8 14		1 1 11 6 46
Fin ial a vai lab le f ale ts a anc sse or s	8 3 06 461	37 38 3	47 517	1 8 61	8 3 93 222	1 8 59 660		1 8 59 660		10 252 88 2
Loa and ad to dit ins titu tio ns van ces cre ns	2 12 9 3 09	2 1 16 5 81	2 894	( ) 3 0 57 305	1 19 1 47 9	1 6 22 650	6 37	1 6 23 287	( 39) 1 10 4 0	1 7 10 7 27
Loa and ad to tom ns van ces cus ers	26 137 119	14 7 8 39		( 21 7 94)	26 26 3 16 4	1 0 82 309		1 0 82 309		27 34 5 4 73
He ld t atu rity inv est nts o m me	44 3 2 80	30 28 9		( ) 28 271	44 5 2 98					44 5 2 98
He dg ing de riva tive s	28 4 3 04	3 89		( 3 9 56)	28 0 7 37					28 0 7 37
Oth er t ible set ang as s	78 78 2	1 7 13	1		80 49 6	12 9 6 75	5 18	13 0 19 3		21 0 6 89
Inta ible set ng as s	11 835	5 0			11 885	2 129	3	2 132		14 017
Inv nt i cia ted ani and jo intl roll ed itie est ont ent me n a sso co mp es y c s	80 653		82 711		16 3 3 64		38 89 1	38 89 1		20 2 2 55
Tax set as s	61 4 5 09	4 091	( 1 00 7)		61 7 5 93	10	8 9	9 9		61 7 6 92
Oth ts er a sse	71 4 5 10	32 08 8	3 83	( ) 104 519	64 2 4 62	26 66 0	19 4	26 85 4	( 54) 18 9	65 0 3 62
T O T A L A SS ET S	40 41 4 0 65	2 57 6 0 96	13 7 2 02	( 3 4 68 23 7)	39 65 9 1 26	6 00 7 4 65	4 0 4 00	6 04 7 8 65	( 1 14 2 4 10)	44 56 4 5 81
ES LIA BIL ITI
Re of c ent ral ban ks so urc es	4 2 70 918				4 2 70 918					4 2 70 918
Fin ial l iab ilitie s h eld fo din r tra anc g	34 1 60 1	28 017		( 29 454 )	34 0 16 4					34 0 16 4
of o Re the edi t in stit utio so urc es r cr ns	5 8 46 931	34 00 6	25 24 0	( 07) 2 2 15 3	3 6 90 870	9 6	9 11	1 0 07	( 56) 1 12 3 4	2 5 68 421
Re of c d o the r de bts ust so urc es om ers an	18 162 190	2 2 29 409		( 1 08 4 6 09)	19 306 99 0	5 3 14 1 49		5 3 14 1 49		24 62 1 13 9
De bt s ritie ecu s	3 8 23 024	12		( ) 35 409	3 7 87 627					3 7 87 627
Fin ial l iab ilitie lati sfe rred to t set anc s re ng ran as s	1 5 91 8 11			( 827 )	1 5 90 984					1 5 90 984
He dg ing de riva tive s	81 5 8 80			( ) 897	81 4 9 83					81 4 9 83
Pro vis ion s	10 4 4 55	2 15			10 4 6 70	33 72 8		33 72 8		13 8 3 98
Te chn ica l pr isio ov ns	2 1 11 11 2	14 4 2 52			2 2 55 364					2 2 55 364
Tax lia bilit ies	10 8 5 21	4 778	( 9) 1 21		112 08 0	8 035	6 1	8 096		12 0 17 6
Co ntin rtib le s ubo rdin d b ond t co ate gen nve s	1 2 00 279				1 2 00 279					1 2 00 279
Oth ubo rdin ate d d ebt d p art icip atin bon ds er s an g	21 8 2 48	3 842		( ) 65 759	15 6 3 31					15 6 3 31
Oth er l iab ilitie s	57 0 6 50	46 98 8	3 432	( 35 975 )	58 5 0 95	70 95 7	2 055	73 012	( 18 9 54)	63 9 15 3
T O T A L L IA B IL IT I ES	39 16 5 6 20	2 49 1 5 19	2 7 4 53	( 3 4 68 23 7)	38 21 6 3 55	5 42 6 9 65	3 02 7	5 42 9 9 92	( 1 14 2 4 10)	42 50 3 9 37
SH AR EH OL DE RS ' E QU ITY
Sha reh old ' eq uity ribu tab le t he sha reh old of BP I att o t ers ers	1 19 7 3 01	76 69 8	10 9 7 49		1 3 83 748	28 6 8 21	37 413	32 4 2 34		1 7 07 982
M in orit inte t y res	51 144	7 879			59 02 3	29 3 6 79	( 40)	29 3 6 39		35 2 6 62
L S S' T O T A H A R E H O LD ER EQ UIT Y	1 2 48 44 5	8 4 5 77	10 9 7 49		1 4 42 77 1	5 80 50 0	3 7 3 73	6 17 87 3		2 06 0 6 44
T O T A L L IA B IL IT I ES A N D SH A R EH OL D E R S ' E QU IT Y	40 41 4 0 65	2 57 6 0 96	13 7 2 02	( 3 4 68 23 7)	39 65 9 1 26	6 00 7 4 65	4 0 4 00	6 04 7 8 65	( 1 14 2 4 10)	44 56 4 5 81

Inv de in tm ts es en ma :
Pro ty per	7				7	9 279	9 4	9 373		9 380
Equ ipm ent d o the r ta ible set an as s	3 6 07	12 7			3 734	15 73 7	2 70	16 00 7		19 74 1
ng
Inta ible set ng as s	4 8 09	6			4 815	1 3 78		1 3 78		6 193

Banco BPI | 3rd quarter 2013 | Notes to the consolidated financial statements 41

	Do sti ion rat me c o pe s					Int ati ern	al on op	tio era ns	Inte r
	Co ial mm erc ban kin g	Inv est nt me ban kin g	Eq uity inv d est nts me an oth ers	Inte ent r se gm tio op era ns	To l ta	An la go	Ot her s	To l ta	nt seg me tio op era ns	BP I G ro up
F in cia in (na e) l m an arg rro w se ns	2 79 51 3	2 97	( 01) 1 7		2 78 10 9	1 37 15 4	( ) 39	1 37 11 5		4 15 22 4
Gro in o nit link ss ma rg n u s	6 22	1 4 25			2 047					2 047
Inc e fr uity ins tru nts om om eq me	1 2 99	10 0	1 7 46		3 145					3 145
Ne iss ion lati ise d c t co to ort t mm re ng am os	19 54 7				19 54 7					19 54 7
F in cia l m in an arg	3 00 98 1	1 82 2	4 5		3 02 84 8	1 37 15 4	( 39 )	1 37 11 5		4 39 96 3
Te chn ica l re sul f in t o tra cts sur anc e c on	17 9 09	2 10			18 119					18 119
Co iss ion cei ved mm s re	22 0 9 41	28 74 6		( 18 3 38)	23 1 34 9	23 139	14 3	23 28 2	( 938 )	25 3 6 93
Co iss ion aid mm s p	( ) 40 442	( 34) 6 6	( 1)	18 33 8	( ) 28 739	( 73) 4 4	( 7)	( 80) 4 4	9 38	( 1) 32 28
Oth er i t nco me , ne	14 96 4	6 7			15 03 1	18 72 7		18 72 7		33 75 8
mi io n in N e t c o m ss co me	1 95 46 3	2 2 1 79	( 1)		2 17 64 1	3 7 3 93	1 36	3 7 5 29		2 55 17 0
Ga in a nd los atio at f air lue s o n o per ns va	14 0 5 44	6 437	1		14 6 9 82	55 04 7		55 04 7		20 2 0 29
Ga in a nd los ilab le f sal ts a s o n a sse va or e	17 7 10	10	4 99		18 219					18 219
Inte d fi cia l ga in a nd los ith sio t an res nan s w pen ns	1 6 44	10 9	1		1 7 54					1 7 54
N e t i n f ina ial io n rat nc o m e o nc o pe s	1 59 89 8	6 55 6	5 01		1 66 95 5	5 5 0 47		5 5 0 47		2 22 00 2
Op ting inc era om e	6 248	2 14			6 462	5 82	12	5 94		7 056
Op ting era ex pen ses	( 12 5 32)	( 248 )	( 3)		( 12 7 83)	( 181)	( 1)	( 182 )		( 12 9 65)
Oth er t axe s	( 67) 2 9	( 1) 48			( 48) 3 4	( ) 296	( 12)	( ) 308		( 56) 3 7
N e ing in t o rat pe co me	( 9 2 51)	( 515 )	( 3)		( 9 7 69 )	1 05	( 1)	1 04		( 9 6 65 )
Op tin inc e f ba nk ing tiv ity era g om ro m ac	65 6 00 0	52 3 0 2	5 42		95 6 79 4	2 29 69 9	9 6	5 2 29 79		25 58 9 9
Pe l co sts rso nne	( 0) 210 54	( 38) 14 5	( ) 130		( 8) 225 20	( ) 46 576	( ) 892	( ) 47 468		( 6) 272 67
Ge al a dm inis tive tra sts ner co	( ) 132 217	( 63) 8 0	( 28)		( 8) 140 30	( 67) 41 6	( ) 378	( ) 42 045		( 3) 182 35
De cia tio nd isa tio ort pre n a am n	( 14 5 79)	( 1 02 0)			( 15 5 99)	( 9 3 72)	( 74)	( 9 4 46)		( 25 045 )
Ov erh d c ts ea o s	( 35 7 3 36 )	( 23 62 1)	( 158 )		( 38 1 1 15)	( 97 61 5)	( 1 3 44 )	( 98 95 9)		( 48 0 0 74 )
Re f lo inte d e t an co ve ry o ans res xpe nse s ,	9 370	3 0			9 400	1 9 68		1 9 68		11 368
Imp airm los d p isio for loa and ent nte t ses an rov ns ns gu ara es, ne	( 202 419 )	( 670 )			( 203 08 9)	( 10 3 14)		( 10 3 14)		( 213 40 3)
Imp airm ent los d o the isio t ses an r pr ov ns, ne	( ) 40 838	( 86)	( ) 677		( 01) 41 6	( 32) 2 3		( 32) 2 3		( ) 43 933
N e t i e b efo inc e t nc o m re o m ax	7 3 7 77	5 90 5	( 29 3)		7 9 3 89	12 1 4 06	( 1 2 48 )	1 20 15 8		1 99 54 7
Inc e ta om x	( 28 839 )	( 2 4 47)	8 6		( 31 2 00)	( 3 9 54)	( 552 )	( 4 5 06)		( 35 706 )
of (eq d) Ea rnin iate d c ies uity tho gs ass oc om pan me	4 930	9 7	3 633		8 660		6 489	6 489		15 149
Gl o b al o li da ted t i co ns ne nc o m e	4 9 8 68	3 55 5	3 42 6		5 6 8 49	1 17 45 2	4 68 9	1 22 14 1		1 78 99 0
Inc ttri but abl ino rity int e to st om e a m ere	( 983 )	( 380 )			( 1 36 3)	( 60 58 1)	11	( 60 570 )		( 61 9 33)
C o o li da ted t i f t he B P I G ns ne nc o m e o ro up	4 8 8 85	3 17 5	3 42 6		5 5 4 86	5 6 8 71	4 70 0	6 1 5 71		1 17 05 7
Ca sh flo fte r ta w a xes	30 6 7 21	4 95 1	4 103		31 5 7 75	78 88 9	4 774	83 66 3		39 9 4 38

4. NOTES

4.1. Cash and deposits at Central Banks

This caption is made up as follows: Cash 332 787 367 092 Demand deposits at the Bank of Portugal 152 951 19 367 Demand deposits at foreign Central Banks 865 468 882 821 Accrued interest 55 85 1 351 261 1 269 365 30 Sep. 13 31 Dec. 12

The caption "Demand deposits at the Bank of Portugal" includes deposits made to comply with the minimum cash reserve requirements of the European Central Bank System (ECBS). These deposits bear interest and correspond to 1% of the amount of customers' deposits and debt securities maturing in up to 2 years, excluding deposits and debt securities of entities subject to the ECBS minimum cash reserves regime.

4.2. Deposits at other Credit Institutions

This caption is made up as follows:

	30 Sep. 13	31 Dec. 12
Domestic Credit Institutions
Demand deposits	2 460	3 684
Checks for collection	87 050	77 607
Other	1 080	994
Foreign Credit Institutions
Demand deposits	340 738	366 594
Checks for collection	26 136	4 558
Accrued interest	2	1
	457 466	453 438

Cheques for collection from domestic Credit Institutions correspond to cheques drawn by third parties against domestic credit institutions, which in general do not remain in this account for more than one business day.

4.3. Financial assets held for trading and at fair value through profit or loss

This caption is made up as follows:

	30 Sep. 13	31 Dec. 12
Financial assets held for trading
Debt Instruments
Bonds issued by Portuguese government entities	7 911	3 712
Bonds issued by foreign government entities	143 434	153 801
Bonds issued by other Portuguese entities
Non-subordinated debt	4 015	4 833
Bonds issued by other foreign entities
Non-subordinated debt	4 613	3 970
Subordinated debt		189
	159 973	166 505
Equity instruments
Shares issued by Portuguese entities	130 795	108 913
Shares issued by foreign entities	68 745	58 944
	199 540	167 857
Other securities
Participating units issued by Portuguese entities	154	152
Participating units issued by foreign entities	89	85
	243	237
	359 756	334 599
Financial assets at fair value through profit or loss
Debt Instruments
Bonds issued by Portuguese government entities	119 163	119 435
Bonds issued by foreign government entities	124 730	89 164
Bonds issued by other Portuguese entities
Non-subordinated debt	68 407	19 015
Bonds issued by foreign financial entities		744
Bonds issued by other foreign entities
Non-subordinated debt	46 862	51 298

Subordinated debt	1 880	1 685
	361 042	281 341
Equity instruments
Shares issued by Portuguese entities	745	489
Shares issued by foreign entities	24 349	21 993
	25 094	22 482
Other securities Participating units issued by Portuguese entities	13 138	12 426
Participating units issued by foreign entities	165 982	131 771
	179 120	144 197
	565 256	448 020
Derivative instruments with positive fair value (Note 4.4)	246 553	329 027
	1 171 565	1 111 646

This caption includes the following assets hedging capitalisation insurance products issued by BPI Vida:

	30 Sep. 13	31 Dec. 12
Debt Instruments
Of public entities	243 893	208 599
Other entities	117 150	72 742
Equity Instruments	8 652	6 186
Other securities	179 120	144 197
Derivative instruments with positive fair value	127	286
	548 942	432 010

4.4. Derivatives

The caption "Derivative instruments held for trading" (Notes 4.3 and 4.14) is made up as follows:

		30 Sep. 13		31 Dec. 12
	Notional	Book value		Notional		Book value
	value1	Assets	Liabilities	value1	Assets	Liabilities
Exchange rate contracts
Futures	239 448			239 448
Exchange forw ards and sw aps	2 183 009	722	894	1 816 008	1 172	112
Interest rate contracts
Futures	301 751	49	56	184 067	29	113
Options	499 829	3 475	3 735	594 164	5 333	5 545
Sw aps	6 567 231	212 780	214 604	7 527 215	285 208	286 338
Contracts over shares
Futures	30 929	19	163	33 924	15	55
Sw aps	246 939	219	12 093	221 830	2 837	13 367
Options	31 233	535	50	177 680	1 124	253
Contracts over other underlying items
Futures	213 169			185 687
Options	6 264
Other
Options2	711 595	27 493	27 713	1 198 581	32 415	33 210
Other3	1 989 056		190	2 157 136		938
Overdue derivatives		1 261			894
	13 020 453	246 553	259 498	14 335 740	329 027	339 931

1 In the case of swaps and forwards only the asset amounts were considered.

2 Parts of operations that are autonomous for accounting purposes, commonly referred to as "embedded derivatives".

3 Corresponds to derivatives associated to Financial liabilities relating to transferred assets (Note 4.19).

The caption "Derivative instruments held for hedging" is made up as follows:

		30 Sep. 13		31 Dec. 12
	Notional	Book value		Notional	Book value
	value1	Assets	Liabilities	value1	Assets	Liabilities
Interest rate contracts
Futures	143 630	1	458	137 358	350	248
Sw aps	15 918 812	170 893	564 599	15 467 042	244 327	778 369
Contracts over shares
Sw aps	216 044	908	3 998	298 384	764	4 370
Contracts over credit events
Sw aps	15 164	72		15 164	33	1
Contracts over other underlying items
Sw aps	12 758	325	399	32 786	3 808	540
Other
Options2	591 965	25 470	25 470	622 712	31 455	31 455
	16 898 373	197 669	594 924	16 573 446	280 737	814 983

1 In the case of swaps and forwards only the asset amounts were considered.

2 Parts of operations that are autonomous for accounting purposes, commonly referred to as "embedded derivatives".

The BPI Group's operations include carrying out derivative transactions to manage its own positions based on expectations regarding market evolution (trading), meet the needs of its customers or hedge positions of a structural nature (hedging).

All derivatives (embedded or autonomous) are recorded at market value.

Derivatives are also recorded as off balance sheet items by their theoretical value (notional value). Notional value is the reference value for purposes of calculating the flow of payments and receipts resulting from the operation.

Market value (fair value) corresponds to the value of the derivatives if they were traded on the market on the reference date. Changes in the market value of derivatives are recognised in the appropriate balance sheet accounts and have an immediate effect on net income.

4.5. Financial assets available for sale

This caption is made up as follows:

	30 Sep. 13	31 Dec. 12
Debt instruments
Bonds issued by Portuguese government entities	5 134 831	5 493 710
Bonds issued by foreign government entities	3 259 122	3 249 288
Bonds issued by other Portuguese entities
Non-subordinated debt	472	79 826
Bonds issued by other foreign entities
Non-subordinated debt	167 824	303 848
Subordinated debt	720 632	753 087
Impairment		( 1 501)
	9 282 881	9 878 258
Equity instruments
Shares issued by Portuguese entities	70 683	59 063
Impairment	( 27 956)	( 27 933)
Quotas	44 081	46 335
Shares issued by foreign entities	32 556	36 180
Impairment	( 18 122)	( 18 156)
	101 242	95 489
Other securities
Participating units issued by Portuguese entities	356 859	289 922
Impairment	( 19 107)	( 15 068)
Participating units issued by foreign entities	2 302	1 535
	340 054	276 389
Loans and other receivables	21 960	22 722
Impairment	( 20 225)	( 19 976)
	1 735	2 746
Overdue securities	2 122	1 087
Impairment	( 2 122)	( 1 087)
	9 725 912	10 252 882

The caption "Loans and other receivables" corresponds to shareholders' loans to, and supplementary capital contributions in, companies classified as financial assets available for sale.

In the review made by the Bank, no impaired securities were identified, other than the amounts already recognised.

The changes in impairment losses and provisions in the first nine months of 2013 and 2012 are shown in Note 4.20.

4.6. Loans and advances to credit institutions

This caption is made up as follows:

	30 Sep. 13	31 Dec. 12
Loans and advances to Bank of Portugal		14 500
Loans and advances to other Portuguese credit institutions
Deposits	300 873	50 000
Other loans	46 100	34 800
Other advances	8 697	4 122
Accrued interest	435	650
	356 105	89 572
Loans and advances to other foreign Central Banks	428 419	435 756
Loans and advances to international financial organisations		2 541
Loans and advances to other foreign credit institutions
Very short term loans and advances	44 625	135 305
Deposits	107 592	23 746
Loans	44	40
Other loans and advances	735 947	1 005 629
Accrued interest	3 901	4 590
	1 320 528	1 607 607
Commission relating to amortised cost (net)	( 24)
	1 676 609	1 711 679
Impairment	( 2)	( 952)
	1 676 607	1 710 727

The changes in impairment losses and provisions in the first nine months of 2013 and 2012 are presented in Note 4.20.

4.7. Loans and advances to customers

This caption is made up as follows:

	30 Sep. 13	31 Dec. 12
Loans
Domestic loans
Companies
Discount	95 485	125 101
Loans	5 062 581	5 163 276
Commercial lines of credit	954 768	1 052 342
Demand deposits - overdrafts	188 933	325 973
Invoices received - factoring	341 559	536 779
Finance leasing	220 969	265 261
Real estate leasing	384 938	438 986
Other loans	23 051	23 628
Loans to individuals
Housing	11 479 477	11 743 141
Consumer	731 818	828 012
Other loans	521 192	550 503
Foreign loans
Companies
Discount	729	1 423
Loans	2 423 546	2 377 834
Commercial lines of credit	174 442	228 415
Demand deposits - overdrafts	21 914	26 571
Invoices received - factoring	981	1 040
Finance leasing	243	504
Real estate leasing	909	985
Other loans	300 757	293 771
Loans to individuals
Housing	160 122	161 429
Consumer	225 129	305 101
Other loans	85 635	77 889
Accrued interest	74 187	64 618
	23 473 365	24 592 582
Securities
Issued by Portuguese government entities	199 885	199 863
Issued by other Portuguese entities
Non subordinated debt securities
Bonds	1 371 552	957 446
Commercial paper	978 422	1 181 053
Issued by foreign government entities	23 037
Issued by other foreign entities

Non subordinated debt securities
Bonds	353 425	198 575
Subordinated debt securities	24 720	24 720
Accrued interest	25 468	13 671
Deferred interest	( 1 428)	( 1 334)
	2 975 081	2 573 994
Correction of the amount of hedged assets	35 678	49 156
Commission relating to amortised cost (net)	1 666	( 4 501)
	26 485 790	27 211 231
Overdue loans and interest	1 050 031	917 399
Loan impairment	( 902 054)	( 783 157)
	26 633 767	27 345 473

The caption "Loans to customers" includes the following non-derecognised securitised assets:

	30 Sep. 13	31 Dec. 12
Non-derecognised securitised assets1
Loans
Housing	4 671 808	4 832 928
Loans to SME's	3 190 933	3 223 577
Accrued interest	16 333	17 727
	7 879 074	8 074 232

1 Excludes overdue loans and interest.

The loans subject to securitisation operations carried out by Banco BPI were not derecognised from the Bank's balance sheet and are recorded under the caption "Loans". The amounts received by Banco BPI from these operations are recorded under the caption "Liabilities relating to assets not derecognised in securitisation operations" (Note 4.19).

During the first quarter of 2012, Banco BPI repurchased 35% of the equity pieces related to housing loans securitisation operations, which caused an increase of loans and advances to customers in the amount of 761 072 t. euro (in February 2012).

At September 30, 2013 and December 31, 2012 the caption "Loans to Customers" also included operations allocated to the Cover Pool given as collateral for Covered Bonds issued by Banco BPI (Note 4.18), namely:

5 730 082 t. euro and 5 701 444 t. euro, respectively, allocated as collateral to mortgage bonds,
689 360 t. euro and 660 991 t. euro, respectively, allocated as collateral to public sector bonds.

The securities portfolio includes the following assets to cover capitalization insurance contracts issued by BPI Vida:

	30 Sep. 13	31 Dec. 12
Debt instruments
Issued by Portuguese government entities	199 885	199 863
Issued by other Portuguese entities	1 291 194	380 005
Issued by other foreign entities	407 886	191 201
	1 898 965	771 069

The changes in impairment losses and provisions in the first nine months of 2013 and 2012 are presented in Note 4.20.

4.8 Held to maturity investments

This caption is made up as follows:
	30 Sep. 13	31 Dec. 12
Debt Instruments
Bonds issued by other Portuguese entities
Non-subordinated debt	24 318	160 650
Bonds issued by foreign government entities	59 957	69 867
Bonds issued by other foreign entities
Non-subordinated debt	52 446	201 073
Subordinated debt	1 900	11 349
Accrued interest	906	2 359
	139 527	445 298

The portfolio of held to maturity investments includes assets to cover capitalization insurance contracts issued by BPI Vida.

4.9. Other tangible assets

The changes in other tangible assets in the first nine months of 2013 were as follows:

	Gr os s						De		Ne t	Ne t
	Ba lan ce De at 1, 12 3 c.	Pu ha rc se s	Sa les d an ite wr - f fs o	Tr fe an s rs d o t he an rs	ig Fo re n ha e d ex c ng i f fe re nc es	Ba lan at ce Se 0, 13 3 p.	Ba lan at ce De 1, 12 3 c.	iat ion De p re c fo he r t io d p er	p Sa les d an ite wr f fs o	ig Fo re n ha e d ex c ng i f fe re nc es	Ba lan at ce Se 3 0, 13 p.	Ba lan at ce Se 3 0, p. 13	Ba lan at ce De 3 1, 12 c.
Pro ert p y
for P ert rop y ow n u se	13 6 8 00	4 36	( ) 14 3	3 22 0	( ) 4 0 17	13 6 2 96	26 17 2	1 92 1	( ) 40	( ) 41 9	27 63 4	10 8 6 62	11 0 6 28
Ot he ert r p rop y	1 04					1 04	3 5	1			3 6	6 8	6 9
L ho ld imp ts ea se rov em en	11 2 3 60	6 05	( 1 7 25 )	2 34 6	( 1 7 60 )	11 1 8 26	97 54 3	1 79 3	( 1 5 40 )	( 1 1 78 )	96 61 8	15 20 8	14 81 7
	24 9 26 4	1 0 41	( ) 1 8 6 8	5 5 6 6	( ) 5 7 77	24 8 22 6	12 3 7 5 0	3 71 5	( ) 1 5 8 0	( ) 1 5 97	12 4 2 8 8	12 3 9 3 8	12 5 5 14
Eq ip nt me u
F itur nd fix tur urn e a es	52 83 5	8 88	( ) 35 2	9 5	( ) 52 9	52 93 7	44 00 1	1 43 1	( ) 34 6	( ) 25 4	44 83 2	8 10 5	8 83 4
M hin d t ls ac ery an oo	14 20 3	5 15	( ) 35 2	( ) 16	( ) 16 7	14 18 3	12 40 5	4 79	( ) 35 1	( ) 102	12 43 1	1 75 2	1 79 8
Co r h dw ute mp ar are	18 7 9 20	2 77 4	( 3 0 91 )	1 15 0	( 1 0 48 )	18 7 7 05	17 8 7 35	5 19 6	( 3 0 74 )	( 85 5 )	18 0 0 02	7 70 3	9 18 5
I rio r in llat ion nte sta s	16 0 4 75	1 13 9	( 4 6 81 )	1 60	( 35 0 )	15 6 7 43	11 6 5 53	65 1 7	( 2 5 22 )	( 16 0 )	12 1 5 22	35 22 1	43 92 2
V hic les e	10 75 8	1 33 0	( ) 51 1	2 14	( ) 41 5	11 37 6	7 30 1	1 50 3	( ) 47 6	( ) 28 6	8 04 2	3 33 4	3 45 7
Se rity ip nt cu eq u me	27 69 2	4 82	( ) 18 5	( ) 1 0 78	( ) 19 1	26 72 0	22 70 4	8 03	( ) 16 8	( ) 10 0	23 23 9	3 48 1	4 98 8
Ot he ip nt r e q u me	6 20	3		( ) 8	( ) 22	5 93	1 33	5			1 38	4 55	4 87
	45 4 5 0 3	7 13 1	( ) 9 17 2	5 17	( ) 2 7 22	45 25 0 7	3 8 1 8 3 2	17 0 6 8	( ) 6 9 37	( 57 ) 1 7	3 9 0 20 6	5 6 0 0 1	72 67 1
Ta ib le a in ets ng ss p rog res s	9 62 4	6 12 8		( 6 4 18 )	( 20 8 )	9 12 6						9 12 6	9 62 4
Ot he ib le a r ta ets ng ss	12 99 1	2	( ) 25 1			12 74 2	10 11 1	1 81	( ) 19 1		10 10 1	2 64 1	2 88 0
	22 6 15	6 13 0	( 25 1 )	( 6 41 8 )	( 20 8 )	21 8 6 8	10 11 1	1 8 1	( 19 1 )		10 10 1	11 76 7	12 5 0 4
	72 6 3 8 2	14 3 0 2	( 11 29 1 )	( 3 3 5 )	( 8 7 07 )	72 0 3 5 1	5 15 6 9 3	20 9 6 4	( 8 7 0 8 )	( 3 3 5 4 )	5 24 5 9 5	19 5 7 5 6	21 0 6 8 9

The changes in other tangible assets in the first nine months of 2012 were as follows:

	Gr os s									Ne t	Ne t
	Ba lan ce De at 31 c. , 11	Pu rch a- se s	Sa les d an ite wr - off s	Tr sfe an rs d o the an rs	Fo ign re ch ex an ge dif fer en ce s	Ba lan at ce Se 30 p. , 12	Ba lan at ce De 31 c. , 11	De cia tio pre n for th e rio d pe	Sa les d an ite wr off s	Tr sfe an rs d o the an rs	Fo ign re ch ex an ge dif fer en ce s	Ba lan at ce Se 30 p. , 12	Ba lan at ce Se 30 p. , 12	Ba lan at ce De 31 11 c. ,
Pro rty pe
P for ert rop y ow n u se	13 0 6 53	6 58 1	( 4 4 91 )	2 42 8	( 152 )	13 5 0 19	24 31 8	1 61 8	( 29 2)	4 1	6	25 69 1	10 9 3 28	10 6 3 35
O the ert r p rop y	3 14		( 21 0)			1 04	1 59	1	( 125 )			3 5	6 9	1 55
L ho ld i ent ea se mp rov em s	11 4 5 22	7 25	( ) 2 5 74	2 594	1 6	11 5 2 83	99 14 2	2 05 5	( ) 2 5 07	( ) 41	4	98 65 3	16 63 0	15 38 0
	24 5 4 89	7 30 6	( ) 7 2 75	5 022	( ) 136	25 0 4 06	12 3 6 19	3 67 4	( 24) 2 9		1 0	12 4 3 79	12 6 0 27	12 1 8 70
Equ ipm ent
fix F itur nd tur urn e a es	52 08 6	1 185	( ) 394		( ) 23	52 85 4	42 79 5	1 50 4	( 3) 38	( 2)	( 6)	43 90 8	8 94 6	9 29 1
M hin d t ls ac ery an oo	13 82 1	69 5	( 27 3)	4	( 7)	14 11 4	12 02 0	50 5	( 26 7)		( 1)	12 30 2	1 812	1 80 1
C ha rdw ter om pu are	18 7 3 11	1 995	( 1 4 30 )	7 29	( 24 )	18 8 5 81	17 3 1 31	6 73 2	( 1 4 20 )	( 1)	( 14)	17 8 4 28	10 15 3	14 18 0
In ter ior ins tall atio ns	16 1 2 55	1 09 8	( ) 2 1 54	5 78	( 15)	16 0 7 62	10 9 0 23	8 04 9	( ) 1 9 58	1	( 5)	11 5 1 10	45 65 2	52 23 2
V eh icle s	9 54 2	1 79 3	( 872 )	1 5	( 38 )	10 44 0	6 49 0	1 51 1	( 86 6)	2	( 19)	118 7	3 322	3 05 2
S urit ipm ent ec y e qu	27 28 8	5 11	( 24 5)	8 5	( 1)	27 63 8	21 80 6	1 02 7	( 24 2)		( 5)	22 58 6	5 052	5 48 2
O the ipm ent r e qu	7 46	1 1	( ) 118			6 39	2 44	9	( ) 118			1 35	5 04	5 02
	45 2 0 49	7 162	( 5 4 86)	1 41 1	( 108 )	45 5 0 28	36 5 5 09	19 38 2	( 5 2 54)		( 50)	37 9 5 87	75 44 1	86 54 0
Ta ible s in set ng as pr og res s	13 53 3	6 30 1		( 11 21 5)	1 26	8 74 5							8 745	13 53 3
Oth tan ible set er g as s	13 36 9		( 1) 32			13 04 8	10 20 4	2 10	( 1) 31			10 10 3	2 945	3 165
	26 90 2	6 30 1	( 32 1)	( 11 21 5)	1 26	21 79 3	10 20 4	2 10	( 31 1)			10 10 3	11 69 0	16 69 8
	72 4 4 40	9 ( 20 76	2) 13 08	( 82) 4 7	( ) 118	72 7 2 27	49 9 3 32	23 26 6	( 89) 8 4		( 40)	51 4 0 69	58 21 3 1	5 1 22 08

4.10. Intangible assets

The changes in intangible assets in the first nine months of 2013 were as follows:

		Gr os s						De		Ne t	Ne t
	Ba lan ce at De 3 1, c. 12	Pu ha rc se s	Sa les d an ite wr f fs o	Tr fe an s rs d o he t an rs	Fo ig re n ha ex c ng e f fe d i re nc es	Ba lan at ce Se 3 0, p. 13	Ba lan at ce De 3 1, c. 12	De iat ion p re c fo r t he io d p er	Sa les d an ite wr f fs o	Fo ig re n ha ex c ng e f fe d i re nc es	Ba lan at ce Se 3 0, 13 p.	Ba lan at ce Se 3 0, p. 13	Ba lan at ce De 3 1, 12 c.
So ftw are	65 11 6	1 35 9		1 14 0	( ) 23 2	67 38 3	59 08 9	2 72 8		( ) 144	61 67 3	5 71 0	6 02 7
Ot he r in ib le a tan ets g ss	30 14 4		( ) 1 0 02		( ) 62	29 08 0	27 46 0	9	( ) 1 0 02	( ) 61	26 40 6	2 67 4	2 68 4
	9 5 26 0	1 3 5 9	( ) 1 0 0 2	1 14 0	( ) 29 4	9 6 46 3	8 6 5 49	2 73 7	( ) 1 0 0 2	( ) 20 5	8 8 07 9	8 3 8 4	8 71 1
Inta ib le a in ets ng ss p rog res s	5 30 6	3 01 3		( 1 8 41 )		6 47 8						6 47 8	5 30 6
	10 0 5 6 6	4 37 2	( 1 0 0 2 )	( 70 1 )	( 29 4 )	10 2 9 41	8 6 5 49	2 73 7	( 1 0 0 2 )	( 20 5 )	8 8 07 9	14 8 6 2	14 0 17

The changes in intangible assets in the first nine months of 2012 were as follows:

		Gr os s						De		Ne t	Ne t
	Ba lan ce De 3 1, at c. 11	Pu ha rc se s	Sa les d an ite wr f fs o	Tr fe an s rs d o t he an rs	Fo ig re n ha ex c ng e d i f fe re nc es	Ba lan at ce Se 3 0, p. 12	Ba lan at ce De 3 1, c. 11	De iat ion p re c fo he r t io d p er	Sa les d an ite wr f fs o	Fo ig re n ha ex c ng e d i f fe re nc es	Ba lan at ce Se 3 0, 12 p.	Ba lan at ce Se 3 0, p. 12	Ba lan at ce De 3 1, 11 c.

So ftw are	60 37 1	1 09 8		1 0 55	( 1 )	63 01 8	56 77 0	1 74 8		( 3 )	58 51 5	4 50 3	3 60 1
Ot he r in tan ib le a ets g ss	30 55 3		( ) 32 6			30 22 7	27 83 4	3 1	( ) 32 6		27 53 9	2 68 8	2 71 9
	9 0 9 24	1 0 9 8	( 3 26 )	1 5 5 0	( 1 )	9 3 24 5	8 4 6 0 4	1 9 77	( 3 26 )	( 3 )	8 6 0 5 4	19 1 7	6 3 20
Inta ib le a in ets ng ss p rog res s	3 23 7	1 27 2		( 54 2 )		3 96 7						3 96 7	3 23 7
	9 4 1 6 1	2 37 0	( ) 3 26	1 0 0 8	( ) 1	97 21 2	8 4 6 0 4	1 77 9	( ) 3 26	( ) 3	8 6 0 5 4	11 15 8	9 5 57

4.11. Investments in associated companies and jointly controlled entities

Investments in associated companies and jointly controlled entities, recorded in accordance with the equity method, are as follows:

	Effective participation (%)			Book value
	30 Sep. 13	31 Dec. 12	30 Sep. 13	31 Dec. 12
Banco Comercial e de Investimentos, S.A.R.L.	30.0	30.0	41 966	38 891
Companhia de Seguros Allianz Portugal, S.A.	35.0	35.0	89 393	80 654
Cosec – Companhia de Seguros de Crédito, S.A.	50.0	50.0	25 086	24 594
Finangeste – Empresa Financeira de Gestão e Desenvolvimento, S.A.	32.8	32.8	25 292	26 560
Inter-Risco - Sociedade de Capital de Risco, S.A.	49.0	49.0	668	595
Unicre - Instituição Financeira de Crédito, S.A.	21.0	21.0	32 204	30 961
			214 609	202 255

4.12. Tax assets

This caption is made up as follows:

	30 Sep 13	31 Dec 12
Current tax assets
Corporate income tax recoverable	12 734	7 162
Others	2 010	2 047
	14 744	9 209
Deferred tax assets
Due to temporary differences	475 119	536 549
Due to tax losses carried forw ard	57 377	71 934
	532 496	608 483
	547 240	617 692

Details of deferred tax assets are presented in Note 4.41.

4.13. Other assets

This caption is made up as follows:

	30 Sep. 13	31 Dec. 12
Debtors, other applications and other assets
Debtors for future operations	11 456	10 492
Collateral accounts	6 063	3 727
Other aplications	12 492	7 183
VAT recoverable	135	115
Debtors for loan interest subsidy receivable	5 702	6 811
Other debtors	115 285	129 068
Overdue debtors and other applications	777	432
Impairments for debtors and other applications	( 259)	( 395)
Other assets
Gold	38	49
Other available funds and other assets	803	814
	152 492	158 296
Tangible assets available for sale	180 365	169 397
Impairment	( 75 940)	( 64 707)
	104 425	104 690
Accrued income
For irrevocable commitments assumed in relation to third parties	275	226
For banking services rendered to third parties	2 994	2 484
Other accrued income	27 959	28 380
	31 228	31 090
Deferred expenses
Insurance	82	3
Rent	3 889	1 946
Contributions to the Deposit Guarantee Fund	817
Initial contribution to the Resolution Fund (Note 4.41)	1 114
Other deferred expenses	16 697	7 313
	22 599	9 262
Liability for pensions and other benefits (Note 4.26)
Pension Fund Asset Value
Pensioners and employees	1 074 069	986 874
Directors	35 437	32 638
Past Service Liabilities
Pensioners and employees	( 954 432)	( 937 090)
Directors	( 36 512)	( 35 113)
Others	( 1 179)	( 999)
Changes in the Pension Plan conditions to be amortised
Others	59	63
Liability for pensions and other benefits	117 442	46 373
Other accounts
Stock exchange transactions pending settlement	10 658	17 761
Over-the-counter exchange transactions pending settlement		21 393
Operations on assets pending settlement	245 777	261 497
	256 435	300 651
	684 621	650 362

The caption "Other debtors" at September 30, 2013 and December 31, 2012 includes 100 045 t. euro and 102 319 t. euro, respectively, relating to instalments receivable from the sale in 2008 of 49.9% of the share capital of Banco de Fomento (Angola). The selling price was 365 671 t. euro, part of the proceeds from the sale being paid in eight annual instalments, from 2009 to 2016, plus compensation due to monetary correction.

The changes in tangible assets available for sale in the first nine months of 2013 were as follows:

	Balance at 31 Dec. 12		Sales and write Aquisi offs tions and		Increase / Reversals of	Foreign exchan ge	Balance at 30 Sep. 13
	Gross	Impair ment	Net	transfers	Gross	Impair ment	impairment	diffe rences	Gross	Impair ment	Net
Assets received in
settlement of defaulting
loans
Real estate		162 320 ( 63 418)	98 902		33 635 ( 21 308)	3 017	( 13 320)			( 44) 174 603 ( 73 721) 100 882
Equipment	2 701	( 1 025)	1 676	2 147	( 3 062)	265	( 217)	( 5)	1 781	( 977)	804
Others	61	( 61)							61	( 61)
Other tangible assets
Real estate	4 315	( 203)	4 112		( 395)	197	( 1 175)		3 920	( 1 181)	2 739
		169 397 ( 64 707) 104 690			35 782 ( 24 765)	3 479	( 14 712)			( 49) 180 365 ( 75 940) 104 425

The changes in tangible assets available for sale in the first nine months of 2012 were as follows:

		Balance at 31 Dec. 11		Aquisi tions and		Sales and write Increase / offs Reversals of		Balance at 30 Sep. 12
	Gross	Impair ment	Net	transfers	Gross	Impair ment	impairment	Gross	Impair ment	Net
Assets received in settlement of defaulting loans
Real estate		139 198 ( 53 561)	85 637		35 913 ( 22 973)	3 868		( 9 025) 152 138 ( 58 718)		93 420
Equipment	2 151	( 838)	1 313	2 760	( 2 367)	203	( 275)	2 544	( 910)	1 634
Others	61	( 61)						61	( 61)
Other tangible assets
Real estate	4 315	( 203)	4 112					4 315	( 203)	4 112
		145 725 ( 54 663)	91 062		38 673 ( 25 340)	4 071		( 9 300) 159 058 ( 59 892)		99 166

The caption "Operations on assets pending settlement" at September 30, 2013 and December 31, 2012 includes 13 292 t. euro and 15 960 t. euro, respectively, relating to taxes to be settled, of which 9 268 t. euro and 11 977 t. euro, relates to taxes under litigation which were paid under the provisions of Decree-Law 248-A / 02 of November 14.

In addition, at September 30, 2013 and December 31, 2012 this caption also includes 187 691 t. euro and 194 994 t. euro, respectively, relating to securitisation operations carried out by the BPI Group (Notes 4.7 and 4.19), resulting from temporary differences between settlement of the securitised loans and settlement of the liability for assets not derecognized.

The captions "Stock and Non stock exchange transactions pending settlement" refer to the sale of securities only settled in the following month.

The changes in impairment losses and provisions in the first nine months of 2013 and 2012 are presented in Note 4.20.

4.14. Resources of Central Banks

This caption is made up as follows:

	30 Sep. 13	31 Dec. 12
Resources of the Bank of Portugal
Deposits	4 074 787	4 217 432
Accrued interest	51 754	33 073
Resources of other Central Banks
Deposits	10 530	20 323
Accrued interest	27	90
	4 137 098	4 270 918

During the first nine months of 2013 and in 2012, Banco BPI took funds from the EuroSystem, using part of its portfolio of eligible assets for this purpose (Note 4.31).

4.15. Financial liabilities held for trading

This caption is made up as follows:

	30 Sep. 13	31 Dec. 12
Short selling
Debt instruments
Bonds issued by foreign government entities	145	233
Derivative instruments with negative fair value (Note 4.4)	259 498	339 931
	259 643	340 164

4.16. Resources of other credit institutions

This caption is made up as follows:

	30 Sep. 13	31 Dec. 12
Resources of Portuguese credit institutions
Interbank money market		150 000
Very short term resources	149 856	11 369
Deposits	165 833	109 266
Loans	33	35
Other resources	6 660	7 174
Accrued interest	758	187
	323 140	278 031
Resources of foreign credit institutions
Deposits of international financial organisations	165 409	192 997
Very short term resources	2 500	57 979
Deposits	150 888	173 119
Debt securities sold w ith repurchase agreements	848 893	1 714 249
Other resources	82 850	140 881
Accrued interest	935	1 185
	1 251 475	2 280 410
Correction of the amount of hedged liabilities	8 069	10 505
Commission relating to amortised cost	( 85)	( 525)
	1 582 599	2 568 421

4.17. Resources of customers and other debts

This caption is made up as follows:

	30 Sep. 13	31 Dec. 12
Demand deposits	8 157 592	7 811 054
Term deposits	16 421 036	15 745 657
Savings deposits	135 701	229 449
Compulsory deposits	6 887	7 210
Cheques and orders payable	62 726	75 776
Debt securities sold w ith repurchase agreements	92 577
Other resources of customers	48 922	54 291
Capitalisation insurance products - Unit links	390 587	323 885
Capitalisation insurance products - Guaranteed Rate and Guaranteed Retirement	100 600	144 409
Accrued interest	179 413	185 564
	25 596 041	24 577 295
Correction of the amount of hedged liabilities	24 991	43 844
	25 621 032	24 621 139

The caption "Resources of customers" at September 30, 2013 included 617 286 t. euro and 142 863 t. euro, respectively, relating to deposits of investment funds and pension funds managed by the BPI Group (414 394 t. euro and 104 507 t. euro, respectively, at December 31, 2012).

4.18. Debt securities

		30 Sep. 13			31 Dec. 12
	Issued	Repurcha sed	Balance	Average interest rate	Issued	Repurcha sed	Balance	Average interest rate
Deposit Certificates
EUR					9		9	3.6%
					9		9
Commercial Paper
EUR	4 907		4 907	2.0%	19 889		19 889	2.2%
	4 907		4 907		19 889		19 889
Covered Bonds
EUR	4 325 000	(2 765 000)	1 560 000	1.6%	4 325 000	(2 752 600)	1 572 400	1.6%
	4 325 000	(2 765 000)	1 560 000		4 325 000	(2 752 600)	1 572 400
Fixed rate cash bonds
EUR	872 210	( 202 563)	669 647	4.2%	1 655 548	( 318 274)	1 337 274	3.9%
CHF					824	( 62)	762	3.3%
USD	16 309	( 4 180)	12 129	3.3%	147 579	( 29 438)	118 141	3.6%
CAD					23 046	( 1 945)	21 101	4.5%
JPY	30 354		30 354	2.5%	35 208		35 208	2.5%
	918 873	( 206 743)	712 130		1 862 205	( 349 719)	1 512 486
Variable rate cash bonds
EUR	142 000	( 42 000)	100 000	0.9%	212 000	( 101 050)	110 950	1.2%
USD					7 579	( 3 085)	4 494	2.4%
	142 000	( 42 000)	100 000		219 579	( 104 135)	115 444
Variable income cash bonds
EUR	333 616	( 113 510)	220 106		668 959	( 248 288)	420 671
USD	39 411	( 17 038)	22 373		56 465	( 38 461)	18 004
	373 027	( 130 548)	242 479		725 424	( 286 749)	438 675
	5 763 807	(3 144 291)	2 619 516		7 152 106	(3 493 203)	3 658 903
Accrued interest Correction of the amount of hedged			29 039				44 022
liabilities			54 467				96 008
Premiums and commission (net)			( 6 735)				( 11 306)
			76 771				128 724
			2 696 287				3 787 627

The changes in the bonds issued by the BPI Group during the first nine months of 2013 were as follows:

	Deposit Certificates	Commercia l Paper	Covered Bonds	Fixed rate bonds	Variable rate bonds	Variable income bonds	Total
Balance at December 31, 2012	9	19 889	1 572 400	1 512 486	115 444	438 675	3 658 903
Bonds issued during the year		4 907		72 327		49 100	126 334
Bonds redeemed	( 9)	( 19 889)		(1 010 420)	( 77 579)	( 400 798)	(1 508 695)
Repurchases (net of resales)			( 12 400)	142 899	62 135	155 800	348 434
Exchange difference				( 5 162)		( 298)	( 5 460)
Balance at September 30, 2013		4 907	1 560 000	712 130	100 000	242 479	2 619 516

The changes in the bonds issued by the BPI Group during 2012 were as follows:

	Deposit Certificates	Commercial Paper	Covered Bonds	Fixed rate bonds	Variable rate bonds	Variable income bonds	Total
Balance at December 31, 2011	27	29 716	2 615 500	2 725 606	607 313	542 110	6 520 272
Bonds issued during the year		19 889	800 000	54 739		62 767	937 395
Bonds redeemed	( 18)	( 29 716)	(1 000 000)	(1 404 053)	( 875 217)	( 258 320)	(3 567 324)
Repurchases (net of resales)			( 843 100)	143 298	383 498	92 244	( 224 060)
Exchange difference				( 7 104)	( 150)	( 126)	( 7 380)
Balance at December 31, 2012	9	19 889	1 572 400	1 512 486	115 444	438 675	3 658 903

Bonds issued by the BPI Group at September 30, 2013, by maturity date, are as follows:

	2013	2014	2015	2016-2019	> 2019	Total
Commercial Paper
EUR	4 907					4 907
	4 907					4 907
Covered Bonds
EUR			835 000	725 000		1 560 000
			835 000	725 000		1 560 000
Fixed rate cash bonds
EUR	37 267	368 394	134 301	109 685	20 000	669 647
USD	3 351	8 778				12 129
JPY					30 354	30 354
	40 618	377 172	134 301	109 685	50 354	712 130
Variable rate cash bonds
EUR		100 000				100 000
		100 000				100 000
Variable income cash bonds
EUR	63 352	96 026	14 216	46 512		220 106
USD			12 580	9 793		22 373
	63 352	96 026	26 796	56 305		242 479
Total	108 877	573 198	996 097	890 990	50 354	2 619 516

Bonds issued by the BPI Group at December 31, 2012, by maturity date, are as follows:

	2013	2014	2015	2016-2019	> 2019	Total
Deposit Certificates
EUR	9					9
	9					9
Commercial Paper
EUR	19 889					19 889
	19 889					19 889
Covered Bonds
EUR			847 400	725 000		1 572 400
			847 400	725 000		1 572 400
Fixed rate cash bonds
EUR	761 751	377 644	65 008	112 871	20 000	1 337 274
CHF	762					762
USD	108 523	9 618				118 141
CAD	21 101					21 101
JPY					35 208	35 208
	892 137	387 262	65 008	112 871	55 208	1 512 486
Variable rate cash bonds
EUR	10 950	100 000				110 950
USD	4 494					4 494
	15 444	100 000				115 444
Variable income cash bonds
EUR	260 422	121 543	30 683	8 023		420 671
USD	3 380	1 698	12 926			18 004
	263 802	123 241	43 609	8 023		438 675
Total	1 191 281	610 503	956 017	845 894	55 208	3 658 903

4.19. Financial liabilities relating to transferred assets

This caption is made up as follows:

	30 Sep. 13	31 Dec. 12
Liabilities relating to assets not derecognised in securitisation operations (Note 4.7)
Loans
Housing loans	4 838 141	4 996 234
Loans to SME's	3 340 200	3 385 632
Liabilities held by the BPI Group	(6 742 984)	(6 790 808)
Accrued costs	1 554	2 898
Commission relating to amortised cost (net)	( 2 651)	( 2 972)
	1 434 260	1 590 984

During 2012, Banco BPI repurchased 35% of the equity piece related to securitisation operations DOURO Mortgages Nº 1, DOURO Mortgages No. 2 and DOURO Mortgages No. 3, in the amount of 770 416 t.euro (in February 2012).

4.20. Provisions and impairment losses

The changes in provisions and impairment losses of the Group during the first nine months of 2013 were as follows:

	Balance at Dec. 31, 12	Increases	Decreases and reversals	Utilisation	Exchange differences and others	Balance at Sep. 30, 13
Impairment losses on loans and advances
to credit institutions (Note 4.6)	952		( 538)	( 394)	( 18)	2
Impairment losses on loans and advances
to customers (Note 4.7)	783 157	192 287	( 7 026)	( 63 799)	( 2 565)	902 054
Impairment losses on financial assets
available for sale (Note 4.5)
Debt instruments	2 588	21	( 996)	( 526)	1 035	2 122
Equity instruments	46 089	52		( 46)	( 17)	46 078
Other securitites	15 068	4 039				19 107
Loans and other receivables	19 976	1 315		( 31)	( 1 035)	20 225
Impairment losses on other assets (Note 4.13)
Tangible assets held for sale	64 707	22 412	( 7 700)	( 3 479)		75 940
Debtors, other applications and other assets	395	26	( 162)			259
Impairment losses and provisions for
guarantees and commitments	48 106		( 2 788)		( 50)	45 268
Other provisions	90 292	3 937	( 2 966)	( 20 898)	8 166	78 531
	1 071 330	224 089	( 22 176)	( 89 173)	5 516	1 189 586

The changes in provisions and impairment losses of the Group during the first nine months of 2012 were as follows:

	Balance at Dec. 31, 11	Increases	Decreases and reversals	Utilisation	Exchange differences and others	Balance at Sep. 30, 12
Impairment losses on loans and advances
to credit institutions	3	959			10	972
Impairment losses on loans and advances
to customers	676 251	234 000	( 31 150)	( 94 854)	( 1)	784 246
Impairment losses on financial assets
available for sale
Debt instruments	2 607	16 103				18 710
Equity instruments	45 189	724			( 3)	45 910
Other securitites	3 571	6 695				10 266
Loans and other receivables	18 383	1 426	( 10)			19 799
Impairment losses on financial assets held
to maturity
Debt instruments	117 733			( 117 733)
Impairment losses on other assets
Tangible assets held for sale	54 663	22 920	( 13 620)	( 4 071)		59 892
Debtors, other applications and other assets	381	34	( 1)	( 31)		383
Impairment losses and provisions for
guarantees and commitments	35 009	10 553			749	46 311
Other provisions	93 179	8 850	( 147)	( 7 572)	1 576	95 886
	1 046 969	302 264	( 44 928)	( 224 261)	2 331	1 082 375

4.21. Technical provisions

This caption is made up as follows:

	30 Sep. 13	31 Dec. 12
Immediate Life Annuity / Individual	5	5
Immediate Life Annuity / Group	26	27
Family Savings	25	38
BPI New Family Savings	1 366 752	1 167 097
BPI Retirement Guaranteed	133 473	112 092
BPI Retirement Savings	872 595	863 190
BPI Non Resident Savings	133 524	103 005
Planor	5 248	5 236
PPR BBI Life	2 770	3 394
Savings Investment Plan / Youths	1 091	1 187
South PPR	83	93
	2 515 592	2 255 364

The technical provisions were computed on a prospective actuarial basis, contract by contract, in accordance with the technical bases of the products.

Immediate income

Individual	Interest Rate 6%
	Mortality Table PF 60/64
Group	Interest Rate 6%
	Mortality Table PF 60/64

Deferred capital with Counterinsurance with Participation in Results

Group	Interest Rate 4% and 0%
	Mortality Table PF 60/64, TV 73-77 and GRF 80

The technical provisions also include a provision for rate commitments, which is recorded when the effective profitability of the assets that represent the mathematical provisions of a determined product is lower than the technical interest rate used to calculate the mathematical provisions.

The BPI New Family Savings, BPI Retirement Savings PPR and BPI Non Resident Savings are capitalisation products with guaranteed capital and participation in the results.

4.22. Tax liabilities

This caption is made up as follows:

	30 Sep. 13	31 Dec. 12
Current Tax Liability
Corporate income tax payable	11 320	29 229
Other	298	1 132
	11 618	30 361
Deferred Tax Liability
On temporary differences	41 144	89 815
	41 144	89 815
	52 762	120 176

Details of the deferred tax liability are presented in Note 4.41.

4.23. Contingent convertible subordinated bonds

This caption is made up as follows:

		30 Sep. 13			31 Dec. 12
		Redem						Average interest	Redem	Average interest
	Issued	ption Balance	rate	Issued ption	Balance	rate
Contingent convertible subordinated bonds
EUR	1 200 000	( 280 000)	920 000	8.8%	1 500 000	( 300 000)	1 200 000	8.5%
	1 200 000	( 280 000)	920 000		1 500 000	( 300 000)	1 200 000
Accrued interest			19 919				279
			939 919				1 200 279

In the beginning of June, 2012 Banco BPI's Board of Directors approved the Recapitalisation Plan for reinforcing Core Tier 1 own funds, in order to comply with the minimum ratios defined by the European Banking Authority and the Bank of Portugal.

The Recapitalisation Plan, in the amount of 1 500 000 t. euro, includes:

• a share capital increase of 200 000 t. euro, with shareholders' preemptive rights;

• the issuance of debt instruments eligible for own funds, subscribed for by the Portuguese State, in the amount of 1 300 000 t. euro.

On June 29, 2012 the Portuguese State subscribed for debt instruments eligible for Core Tier 1 own funds (contingent convertible subordinated bonds), in the amount of 1 500 000 t. euro. The features of these instruments are defined in Law 63 – A/2008 of November 24, as republished by Law 4/2012 of January 11 (Bank Recapitalisation Law), in Ministerial Order 150-A/2012 of May 17 and in the Terms and Conditions established in Order 8840-A/2012 of the Portuguese Minister of State and Finance of June 28, 2012. The investment period of the instrument is five years from the date of issue, and the Recapitalisation Plan of the Bank establishes partial repayments over the period of the instrument. On August 10, 2012 the Bank completed the capital increase of 200 000 t. euro, with shareholders' preemptive rights (Note 4.27). The amount received was used in August 13, 2012 by the Bank to repay part of the contingent convertible subordinated bonds, the par value of which was reduced to 1 300 000 t. euro.

On December 4, 2012 the Bank reimbursed to the Portuguese State 100 000 t. euro relating to contingent convertible subordinated bonds, reducing the nominal amount to 1 200 000 t. euro.

On March 13, 2013 the Bank reimbursed to the Portuguese State 200 000 t. euro relating to contingent convertible subordinated bonds, reducing the nominal amount to 1 000 000 t. euro.

On July 16, 2013 the Bank reimbursed to the Portuguese State 80 000 t. euro relating to contingent convertible subordinated bonds, reducing the nominal amount to 920 000 t. euro.

The contingent convertible subordinated bonds bear interest payable half yearly, at an effective annual interest rate of 8.5% in the first year, increasing 0.25% per year in the first two years and 0.5% in each of the following years.

These instruments are convertible into Banco BPI shares on the occurrence of any one of the events listed in the Terms and Conditions established in Order 8840-A/2012 of the Portuguese Minister of State and Finance of June 28, 2012. Briefly the conversion events are as follows:

termination of the term of 5 years without the instruments having been fully repurchased (under Section 8.5. of the Terms and Conditions);
occurrence of an event qualified as a material breach under Section 8.3. of the Terms and Conditions;
occurrence of the event defined in Section 9.1. of the Terms and Conditions (viability event);
occurrence of the event defined in Section 10 of the Terms and Conditions (regulatory event the instrument is no longer qualified as Core Tier I) and the other alternatives provided for under this Section are not possible;
occurrence of an event qualified as change in control under Section 9.2. of the Terms and Conditions;
exclusion of Banco BPI shares from listing on a regulated market, under Section 9.2. of the Terms and Conditions.

If the conversion into Banco BPI shares referred to above occurs, it will be made through delivery of a number of shares that cannot be determined prior to the occurrence of the event that determines the conversion, since (i) the definition of the Conversion Price contained in Section 1.1. of the Terms and Conditions states that the price depends on the price / market value of the shares in the period prior to the occurrence of the event and (ii) the determination of the number of shares is made based on the Conversion Price.

The Terms and Conditions included an additional conversion event (if on October 1, 2012 the amount of instruments issued exceeds 1 300 000 t. euro), which will no longer occur because, as mentioned above, in August, 2012, Banco BPI repurchased 200 000 t. euro of these instruments, reducing on that date the amount to 1 300 000 t. euro.

4.24. Other Subordinated debt and participating bonds

This caption is made up as follows:

	30 Sep. 13				31 Dec. 12
				Average				Average
		Repurcha		interest		Repurcha		interest
	Issued	sed	Balance	rate	Issued	sed	Balance	rate
Other subordinated debt
Perpetual bonds
EUR	420 000	( 360 000)	60 000	2.3%	420 000	( 360 000)	60 000	1.7%
JPY	56 913	( 56 913)		2.9%	66 015	( 66 015)		2.9%
	476 913	( 416 913)	60 000		486 015	( 426 015)	60 000
Other Bonds
EUR	400 000	( 325 276)	74 724	1.7%	404 200	( 312 237)	91 963	1.3%
JPY	132 797	( 132 797)		2.8%	154 036	( 154 036)		2.8%
	532 797	( 458 073)	74 724		558 236	( 466 273)	91 963
	1 009 710	( 874 986)	134 724		1 044 251	( 892 288)	151 963
Participating bonds
EUR	28 081	( 24 145)	3 936	0.9%	28 081	( 23 962)	4 119	1.2%
	28 081	( 24 145)	3 936		28 081	( 23 962)	4 119
Accrued interest			163				200
Correction of the amount of hedged
liabilities							51
Premiums and commission (net)							( 2)
			163				249
			138 823				156 331

The changes in debt issued by the BPI Group during the first nine months of 2013 were as follows:

	Perpetual bonds	Other bonds	Participating bonds	Total
Balance at December 31, 2012	60 000	91 963	4 119	156 082
Bonds redeemed		( 4 200)		( 4 200)
Repurchases (net of resales)		( 13 039)	( 183)	( 13 222)
Balance at September 30, 2013	60 000	74 724	3 936	138 660

The changes in debt issued by the BPI Group during 2012 were as follows:

	Perpetual bonds	Other bonds	Participating bonds	Total
Balance at December 31, 2011	60 000	149 467	4 595	214 062
Repurchases (net of resales)		( 57 504)	( 476)	( 57 980)
Balance at December 31, 2012	60 000	91 963	4 119	156 082

Debt issued by the BPI Group at September 30, 2013 is made up as follows, by residual term to maturity:

	2013	2016-2019	Total
Perpetual bonds
EUR 1	60 000		60 000
Other bonds
EUR		74 724	74 724
Total	60 000	74 724	134 724

1 In September 2012 the call option was not exercised, so these bonds now have a quarterly call option. In September 2012 the remuneration had a step-up due to the fact that the option was not exercised.

Debt issued by the BPI Group at December 31, 2012 is made up as follows, by residual term to maturity:

	2013	2016-2019	Total
Perpetual bonds
EUR 1	60 000		60 000
Other bonds
EUR	2 369	89 594	91 963
Total	62 369	89 594	151 963

The participating bonds can be redeemed at par at the request of the participants with the approval of the Bank or at the initiative of the Bank with six months notice.

4.25. Other liabilities

This caption is made up as follows:

	30 Sep. 13	31 Dec. 12
Creditors and other resources
Creditors for futures operations	8 421	5 419
Consigned resources	24 425	28 783
Captive account resources	6 947	7 670
Subscription account resources		23
Guarantee account resources	11 406	12 670
State administrative sector
Value Added Tax (VAT) payable	17 754	7 274
Tax w ithheld at source	21 336	30 980
Social Security contributions	4 556	7 230
Other	233	175
Contributions to other health systems	1 406	1 420
Creditors for factoring contracts	17 609	8 401
Creditors for the supply of assets	2 196	2 810
Contributions ow ed to the Pension Fund
Pensioners and employees		500
Directors		2 475
Other creditors	174 945	167 064
Deferred costs	( 222)	( 95)
	291 012	282 799
Accrued costs
Creditors and other resources	340	366
Personnel costs	119 861	90 162
General administrative costs	44 217	35 535
Others	2 630	2 598
	167 048	128 661
Deferred income
On guarantees given and other contingent liabilities	4 697	4 874
Others	4 850	4 650
	9 547	9 524
Other accounts
Foreign exchange transactions pending settlement	17 381	7 739
Non stock exchange transactions pending settlement	11 734
Liabilities pending settlement	138 544	177 968
Other operations pending settlement	52 008	32 462
	219 667	218 169
	687 274	639 153

As of September, 30, the amounts recorded under the caption "Non stock exchange transactions pending settlement" correspond to securities purchased which were only settled in the following month.

The caption "Liabilities pending settlement" at September 30, 2013 and December 31, 2012 includes:

57 973 t. euro and 72 274 t. euro, respectively, relating to electronic interbank transfer transactions;
21 172 t. euro and 47 266 t. euro, respectively, relating to loan securitisation fund transactions; e
12 980 t. euro and 12 660 t. euro, respectively, relating to ATM/POS transactions to be settled with SIBS.

4.26. Capital

The Shareholders' General Meeting held on May 31, 2012 authorised Banco BPI's Board of Directors to do the following (valid for 18 months):

a) to purchase treasury shares of up to 10% of Banco BPI's share capital, provided that:
i) the treasury shares are purchased on a market registered by the Securities Market Commission (Comissão do Mercado de Valores Mobiliários - CMVM), at a price between 120% and 80% of the weighted daily average prices of Banco BPI shares on the 10 official price market sessions managed by Euronext Lisboa - Sociedade Gestora de Mercados Regulamentados, S.A. (Euronext) preceding the date of purchase; or
ii) the purchases result from assets received in payment agreements, to settle obligations emerging from contracts entered into by Banco BPI, provided that the value attributed, for that purpose, to the shares does not exceed the value determined by application of the criteria defined in (i) above, with reference to the settlement agreement date;
b) to sell Banco BPI shares provided that:
i) the shares and options to purchase shares of Banco BPI are sold to employees and Directors of Banco BPI and subsidiaries, as share-based payments under the terms and conditions established in the Variable Remuneration Program (RVA) regulations; or
ii) the shares are sold to third parties under the following conditions:
- 1. the shares are sold in a market registered at the Securities Market Commission (CMVM); and
- 1. the shares are sold at a price not less than 80% of the weighted average of the daily weighted average prices of Banco BPI shares on the 10 official price market sessions managed by Euronext preceding the date of sale;
c) Carry out repurchase or resale agreements or the loan of shares of Banco BPI, provided that such operations are conducted with qualified investors that meet the requirements to be eligible counterparties of Banco BPI, in accordance with articles 30 and 317-D of the Securities Code (Código dos Valores Mobiliários).

On June 27, 2012, the Shareholders' General Meeting approved the conversion of Banco BPI shares into shares with no par value.

On July 10, 2012, under the authority introduced into Banco BPI's Statutes at the Shareholders' General Meeting of June 27, 2012, the Board of Directors decided to increase share capital from 990 000 t. euro to 1 190 000 t. euro, in cash and with shareholders' preemptive rights, which decision was taken considering the Recapitalisation Plan approved in that Shareholders' General Meeting, aimed at reinforcing Core Tier 1 own funds, in order to comply with the minimum ratios defined by the European Banking Authority and the Bank of Portugal (Notes 4.23 and 4.50). The share capital increase was made through the issuance of 400 million ordinary shares with no par value, at an issue price of 0.5 euro. The share capital increase was concluded on August 10, 2012, all the shares offered for subscription being fully subscribed for and so Banco BPI's share capital is now 1 190 000 t. euro represented by 1 390 000 000 nominative dematerialized ordinary shares, with no par value.

Also at the Shareholders' General Meeting held on June 27, 2012:

iii) Under the framework of approval of the issuance of financial instruments eligible for Core Tier 1 own funds (Contingent Convertible Subordinated bonds), with a total par value of 1 500 000 t. euro, approval was given for the share capital increases deemed necessary on the occurrence of any conversion event established in the related Terms and Conditions (in accordance with Order 8840-A/2012, of the Portuguese Minister of State and Finance of June 28);
iv) Authority was given to the Board of Directors to decide the capital increases necessary to realize the matter established in Section 6.4 of those Terms and Conditions relating to the payment in shares of the remuneration of the above mentioned instruments;
v) It was decided to suppress shareholders' pre-emptive rights in the subscription for the instruments referred to in a) and in the share capital increases referred to in b);
vi) Authorisation was given to the Board of Directors to use Banco BPI's treasury shares to pay remuneration of the instruments referred to above.

4.27. Other equity instruments and treasury shares

These captions are made up as follows:

	30 Sep. 13	31 Dec. 12
Other equity instruments
Cost of shares to be made available to Group employees
RVA 2009		7
RVA 2010	116	95
RVA 2011	1	2
RVA 2012	25	14
RVA 2013	15
Costs of options not exercised (premiums)
RVA 2007		5 725
RVA 2008	828	828
RVA 2009	814	814
RVA 2010	568	496
RVA 2011	57	89
RVA 2012	596	488
RVA 2013	262
	3 282	8 558
Treasury shares
Shares to be made available to Group employees
RVA 2009		7
RVA 2010	2	4
RVA 2011	2	2
RVA 2012	40	40
Shares hedging RVA options
RVA 2007		11 348
RVA 2008	3 045	3 045
RVA 2009	3 147	3 147
RVA 2010	106	118
RVA 2011	2 458	133
RVA 2012	8 477	428
	17 277	18 272

The caption "Other equity instruments" includes accrued share-based payment program (RVA) costs relating to shares to be made available and options not yet exercised.

4.28. Revaluation reserves

This caption is made up as follows:

	30 Sep. 13	31 Dec. 12
Revaluation reserves
Reserves resulting from valuation to fair value of financial assets available for
sale (Note 4.5):
Debt Instruments
Securities	( 134 993)	( 52 155)
Hedging derivatives	( 471 468)	( 637 218)
Equity Instruments	13 715	17 053
Other	( 475)	2 431
Reserve for foreign exchange difference on investments in foreign entities
Subsidiary or associated companies	( 50 981)	( 36 672)
Equity instruments available for sale	( 5)	( 4)
Legal revaluation reserve	703	703
	( 643 504)	( 705 862)
Deferred tax reserve
Resulting from valuation to fair value of financial assets available for sale:
Tax assets	178 762	244 037
Tax liabilities	( 3 417)	( 45 789)
	175 345	198 248
	( 468 159)	( 507 614)

Deferred taxes have been calculated in accordance with current legislation and correspond to the best estimate of the impact of recognising the unrealized gains and losses included in the caption "Revaluation Reserves".

4.29. Other reserves and retained earnings

This caption is made up as follows:

	30 Sep. 13	31 Dec. 12
Legal reserve	86 124	68 377
Merger reserve	( 2 463)	( 2 463)
Consolidation reserves and retained earnings	552 951	472 617
Other reserves	609 249	456 056
Actuarial deviations
Associated w ith the transferred liabilities	( 193 538)	( 193 538)
Associated w ith the liabilities that remain w ith the Bank	( 24 277)	( 90 825)
Taxes related to actuarial deviations	62 971	80 834
Loss on treasury shares	( 1 980)	( 6 912)
Taxes relating to gain on treasury shares	604	2 029
	1 089 641	786 175

In accordance with Article 97 of the General Regime for Credit Institutions and Financial Companies, approved by Decree-Law 298/91 of December 31 and amended by Decree-Law 201/2002 of September 25, Banco BPI must appropriate at least 10% of its net income each year to a legal reserve until the amount of the reserve equals the greater of the amount of share capital or the sum of the free reserves plus retained earnings.

4.30. Minority interests

This caption is made up as follows:

	Balance sheet		Statement of income
	30 Sep. 13	31 Dec. 12		30 Sep. 13 30 Sep. 12
Minority shareholders in:
Banco de Fomento Angola, S.A.	290 823	293 679	62 740	60 582
BPI Capital Finance Ltd	51 236	51 144	774	983
BPI Alternative Fund	7 193	7 874	200	377
BPI Alternative Fund Luxemburgo	7 422		97
BPI Dealer - Sociedade financeira de Corretagem (Mozambique), S.A.R.L.		( 40)		( 10)
BPI (Suisse), S.A.	8	5	3	1
	356 682	352 662	63 814	61 933

Minority interests in BPI Capital Finance at September 30, 2013 and December 31, 2012 include 51 021 t. euro relating to preference shares:

		30 Sep. 13		31 Dec. 12
	Issued	Repurchased	Balance	Issued	Repurchased	Balance
"C" Series Shares	250 000	( 198 979)	51 021	250 000	( 198 979)	51 021
	250 000	( 198 979)	51 021	250 000	( 198 979)	51 021

4.31. Off balance sheet items

This caption is made up as follows:

	30 Sep. 13	31 Dec. 12
Guarantees given and other contingent liabilities
Guarantees and sureties	1 942 933	2 185 640
Transactions w ith recourse
Stand-by letters of credit	73 615	13 635
Documentary credits	76 924	177 805
Sureties and indemnities	86	79
Other guarantees given and other contingent liabilities	13 200	13 200
	2 106 758	2 390 359
Assets given as collateral	13 271 650	15 166 739
Commitments to third parties
Irrevocable commitments
Options on assets	10 398	55 047
Irrevocable credit lines	1 565	1 582
Securities subscription	275 860	206 070
Term commitment to make annual contributions to
the Deposit Guarantee Fund	38 714	38 714
Commitment to the Investor Indemnity System	10 262	9 944
Other irrevocable commitments	293	707
Revocable commitments	2 348 421	2 234 781
	2 685 513	2 546 845
Responsibility for services provided
Deposit and safeguard of assets	24 563 078	24 869 361
Amounts for collection	72 717	131 737
Assets managed by the institution	4 980 673	4 924 016
	29 616 468	29 925 114

The caption "Assets given as collateral" at September 30, 2013 includes:

3 364 628 t. euro relating to captive credit and 9 023 225 t. euro relating to securities eligible for funding from the European Central Bank (ECB);
614 030 t. euro relating to securities and 195 835 t. euro relating to loans given in guarantee to the European Investment Bank;
10 176 t. euro relating to securities given in guarantee to the Securities Market Commission (Comissão do Mercado de Valores Mobiliários - CMVM) under the Investor Indemnity System (Sistema de Indemnização aos Investidores);
46 785 t. euro relating to securities given in guarantee to the Deposit Guarantee Fund.

At September 30, 2013 the BPI Group managed the following third party assets:

Investment Funds and PPRs	2 069 116
Pension Funds 1	2 039 172

1 Includes the Group companies' Pension Funds.

4.32. Financial margin (narrow sense)

This caption is made up as follows:

	30 Sep. 13	30 Sep. 12
Interest and similar income
Interest on deposits w ith banks	1 278	1 986
Interest on placements w ith credit institutions	25 405	21 897
Interest on loans to customers	404 493	520 265
Interest on credit in arrears	13 779	10 295
Interest on securities held for trading and available for sale	277 451	356 147
Interest on securitised assets not derecognised	133 162	179 574
Interest on derivatives	203 605	356 193
Interest on securities held to maturity	105	461
Interest on debtors and other aplications	2 520	3 371
Other interest and similar income	3 340	7 605
	1 065 138	1 457 794
Interest and similar expense
Interest on resources
Of central banks	19 310	27 351
Of other credit institutions	8 347	17 866
Deposits and other resources of customers	318 923	443 343
Debt securities	65 801	114 981
Interest from short selling	386	2 498
Interest on derivatives	238 585	378 276
Interest on liabilities relating to assets not derecognised on
securitised operations	15 099	25 444
Interest on contingent convertible subordinated debt	65 021	29 536
Interest on subordinated debt	2 165	2 936
Other interest and similar expenses	215	339
	733 852	1 042 570

4.33. Gross margin on unit links

			This caption is made up as follows:

	30 Sep. 13	30 Sep. 12
Income from financial instruments
Interest	2 068	3 305
Gains and losses on financial instruments	10 230	15 045
Gains and losses on capitalisation insurance - unit links	( 12 298)	( 18 350)
Management and redemption comission	2 168	2 047
	2 168	2 047

4.34. Net commission relating to amortised cost

This caption is made up as follows:

	30 Sep. 13	30 Sep. 12
Commission received relating to amortised cost
Loans to customers	22 837	24 348
Others	974	1 224
Commission paid relating to amortised cost
Loans to customers	( 4 569)	( 4 830)
Others	( 925)	( 1 195)
	18 317	19 547

4.35. Technical result of insurance contracts

This caption is made up as follows:

	30 Sep. 13	30 Sep. 12
Premiums	477 853	178 285
Income from financial instruments	52 933	56 840
Cost of claims, net of reinsurance	( 293 400)	( 596 185)
Changes in technical provisions, net of reinsurance	( 185 088)	415 874
Participation in results	( 35 029)	( 36 695)
	17 269	18 119

This caption includes the result of capitalisation insurance with a discretionary participation feature (IFRS 4). Participation in the results of capitalisation insurance is attributed at the end of each year and is calculated in accordance with the technical bases of each product, duly approved by the Portuguese Insurance Institute.

4.36. Net commission income

This caption is made up as follows:
	30 Sep. 13	30 Sep. 12
Commissions received
On guarantees provided	17 388	19 628
On commitments to third parties	2 902	1 388
On banking services rendered	200 965	221 011
On operations realised on behalf of third parties	9 428	9 182
Other	2 249	2 484
	232 932	253 693
Commissions paid
On guarantees received	23	9
On financial instrument operations	256	395
On banking services rendered by third parties	28 842	29 257
On operations realised by third parties	1 922	2 380
Other	( 86)	240
	30 957	32 281
Other income, net
Refund of expenses	19 605	20 054
Income from banking services	19 696	20 572
Charges similar to fees	( 6 605)	( 6 868)
	32 696	33 758

4.37. Net income on financial operations

This caption is made up as follows:

	30 Sep. 13	30 Sep. 12
Gain and loss on operations at fair value
Foreign exchange gain, net	72 931	62 323
Gain and loss on financial assets held for trading
Debt instruments	3 376	6 349
Equity instruments	48 737	16 322
Other securities	4	8
Gain and loss on trading derivative instruments	( 45 800)	( 17 544)
Gain and loss on other financial assets valued at fair value through
profit and loss account	536	1 076
Gain and loss on financial liabilities held for trading	1 545	( 11 360)
Gain and loss on the revaluation of assets and liabilities hedged by
derivatives	( 102 916)	217 273
Gain and loss on hedging derivative instruments	103 528	( 187 512)
Other gain and loss on financial operations	9 100	115 094
	91 041	202 029
Gain and loss on assets available for sale
Gain and loss on the sale of loans and advances to customers	1 119	( 4 812)
Gain and loss on financial assets available for sale
Debt instruments	129 041	22 522
Equity instruments	4 502	509
	134 662	18 219
Interest and financial gain and loss with pensions
Interest cost relating to the liabilities	( 31 790)	( 34 476)
Income on plan assets computed w ith the discount rate	34 929	36 230
	3 139	1 754

At September 30, 2013, the caption "Other gain and loss on financial operations" includes 5 964 t. euro relating to gains on the repurchase of financial liabilities on securitization operations. At September 30, 2012 the BPI Group recorded gains on the repurchase of debt in the amount of 139 115 t. euro, of which 115 964 t. euro relates to financial liabilities on securitisation operations (included in caption "Other gain and loss on financial operations") and - 2 613 t. euro relates to the repurchase of 35% of the equity piece related to securitisation operations (included in caption "Other realized gains and losses").

At September 30, 2013 the caption "Gain and loss on financial assets available for sale – debt instruments" includes 129 327 t. euro relating to the sale of Treasury Bonds and Treasury Bills issued by the Portuguese State.

4.38 . Net operating expenses

This caption is made up as follows:

	30 Sep. 13	30 Sep. 12
Operating income
Gains on disposal of investiments in subsidiaries and
associated companies		71
Gain on tangible assets held for sale	357	558
Gain on other tangible assets	5 851	3 722
Other operating income	2 919	2 705
	9 127	7 056
Operating expenses
Subscriptions and donations	2 899	2 659
Contributions to the Deposit Guarantee Fund	2 451	3 252
Contributions to the Resolution Fund	3 341
Contribution to the Investor Indemnity System	10	4
Loss on tangible assets held for sale	491	3 512
Loss on other tangible and intangible assets	9 226	2 172
Other operating expenses	2 370	1 366
	20 788	12 965
Other taxes
Indirect taxes	3 448	3 018
Direct taxes	775	738
	4 223	3 756

4.39. Personnel costs

This caption is made up as follows:

	30 Sep. 13	30 Sep. 12
Remuneration	213 556	214 815
Long service premium	2 492	2 272
Pension costs	4 051	5 310
Early retirements	4 085	25 000
Death subsidy	( 3 317)	( 32 398)
Other mandatory social charges	47 619	50 207
Other personnel costs	7 675	7 470
	276 161	272 676

4.40. Administrative Costs

This caption is made up as follows:

	30 Sep. 13	30 Sep. 12
Administrative costs
Supplies
Water, energy and fuel	10 350	10 113
Consumable material	4 021	4 982
Other	831	1 020
Services
Rent and leasing	38 239	39 661
Communications and computer costs	30 146	31 841
Travel, lodging and representation	6 193	6 416
Publicity	13 146	14 507
Maintenance and repairs	16 080	13 526
Insurance	3 353	3 464
Fees	3 451	3 503
Legal expenses	4 851	2 104
Security and cleaning	8 705	9 068
Information services	3 809	3 391
Temporary labour	2 902	3 200
Studies, consultancy and auditing	4 966	6 288
SIBS	15 180	14 613
Other services	14 681	14 656
	180 904	182 353

4.41. Income tax

At September 30, 2013 and 2012, the income tax recognised in the statements of income, as well as the tax burden, measured by the relationship between the tax charge and profit before tax, are as follows:

	30 Sep. 13	30 Sep. 12
Current income tax
For the period	34 158	17 697
Correction of prior years	( 2 218)	( 170)
	31 940	17 527
Deferred tax
Recognition and reversal of temporary differences	( 23 591)	( 9 550)
Change in the tax rate	( 199)
On tax losses carried forw ard	14 558	17 312
	( 9 232)	7 761
Contribution over the banking sector	9 794	10 417
Total tax charged to the statement of income	32 502	35 706
Net income before income tax 1	151 408	199 547
Tax burden	21.5%	17.9%

Considering net income of the BPI Group plus income tax and income attributable to minority interests less the earnings of associated companies (equity method).

	30 Sep. 13		30 Sep. 12
	Tax rate	Amount	Tax rate	Amount

Net income before income tax		151 408		199 547
Income tax computed based on the nominal tax rate	34.3%	51 868	33.0%	65 752
Effect of tax rates applicable to foreign branches	-0.1%	( 191)	-0.1%	( 154)
Capital gain and impairment of investments (net)	0.3%	517	-1.0%	( 2 031)
Capital gain of tangible assets (net)	-0.2%	( 376)	-0.2%	( 457)
Income on Angolan public debt	-24.5%	( 37 069)	-13.9%	( 27 639)
Non taxable dividends	-0.4%	( 641)	-0.3%	( 694)
Tax on dividends of subsidiary and associated companies	3.1%	4 648	2.3%	4 548
Tax benefits	-0.9%	( 1 295)	-0.8%	( 1 557)
Impairments and provisions for loans	-0.3%	( 488)	0.7%	1 433
Non tax deductible pension costs	1.2%	1 808	-0.1%	( 202)
Interest recognised on minority interests	-0.2%	( 228)	-0.1%	( 259)
Correction of prior year taxes	-0.7%	( 1 072)	0.2%	342
Differential of tax rate on tax losses	2.0%	2 975
Use of tax losses			-7.4%	( 14 853)
Effect of change in the rate of deferred tax	-0.1%	( 199)
Contribution over the financial sector	6.5%	9 794	5.2%	10 417
Autonomous taxation	0.6%	951	0.5%	972
Other non taxable income and expenses	1.0%	1 499	0.0%	87
	21.5%	32 502	17.9%	35 706

Reconciliation between the nominal rate of income tax and the tax burden on the first nine months of 2013 and 2012, as well as between the tax cost/income and the product of the accounting profit times the nominal tax rate are as follows:

Current taxes are calculated based on the nominal tax rates legally in force in the countries in which the Bank operates.

Deferred tax assets and liabilities correspond to the amount of tax recoverable and payable in future periods resulting from temporary differences between the amount of assets and liabilities on the balance sheet and their tax base. Deferred tax assets are also recognised on tax losses carried forward and tax credits.

Profits distributed to Banco BPI by subsidiary and associated companies in Portugal are not taxed in Banco BPI as a result of applying the regime established in article 46 of the Corporate Income Tax Code, which eliminates double taxation of profits distributed.

Deferred tax assets and liabilities are calculated using the tax rates decreed for the periods in which they are expected to reverse.

	30 Sep. 13		30 Sep. 12
	Deferred taxes		Deferred taxes
	Assets	Liabilities	Assets	Liabilities
Pension liabilities	2 531		9 610
Early retirements	26 927		31 833
Long service premium	6 660		6 996
Tax deferral of the impact of the partial transfer of liabilities w ith pensions to Social Security	26 001		27 572
Provisions and impairments	156 239		132 693
Revaluation of tangible fixed assets		( 701)		( 737)
Revaluation of assets and liabilities hedged by derivatives		( 311)		( 541)
Financial instruments available for sale		( 2 924)		( 4 579)
Dividends to be distributed by subsidiary and associated companies		( 6 862)		( 6 269)
Repurchase of debt		( 23 619)		( 32 851)
Tax losses	57 377		92 575
Other	1 736	( 3 310)	2 775	( 1 083)
Deferred taxes recognised in the income statement	277 471	( 37 727)	304 054	( 46 060)
Deferred taxes recognised in the fair value reserve	178 762	( 3 417)	318,432	( 79 555)
Deferred taxes recognised in other reserves	76 264		85,516
Total deferred taxes	532 496	( 41 144)	708 002	( 125 615)

Deferred tax assets and liabilities at September 30, 2013 and 2012 are as follows:

Deferred tax assets are recognised up to the amount expected to be realised through future taxable profits.

The BPI Group does not recognise deferred tax assets and liabilities on temporary taxable differences relating to investments in subsidiary and associated companies as it is improbable that such differences will revert in the foreseeable future, except as follows:

deferred tax liabilities relating to estimated dividends that Banco de Fomento Angola is expected to pay to the BPI Group companies in the following year out of profit for the year, are recognized;
deferred tax liabilities relating to all the distributable net income (including the undistributed part) of Banco Comercial e de Investimentos are recognized.

4.42. Earnings of associated companies (equity method)

This caption is made up as follows:

	30 Sep. 13	30 Sep. 12
Banco Comercial e de Investimentos, S.A.R.L.	6 216	6 489
Companhia de Seguros Allianz Portugal, S.A.	7 633	4 930
Cosec – Companhia de Seguros de Crédito, S.A.	3 092	1 463
Finangeste – Empresa Financeira de Gestão e
Desenvolvimento, S.A.	( 1 268)	181
Fundo BPI Obrigações Mundiais (ex-Fundo BPI Taxa Variável)		97
InterRisco - Sociedade de Capital de Risco, S.A.	251	280
Unicre - Instituição Financeira de Crédito, S.A.	1 666	1 709
	17 590	15 149

4.43. Consolidated net income of the BPI Group

The contribution of Banco BPI and subsidiary and associated companies to consolidated net income on the first nine months of 2013 and 2012 is as follows:

	30 Sep. 13	30 Sep. 12
Banks
Banco BPI, S.A.1	( 62 792)	13 377
Banco Português de Investimento, S.A.1	934	3 858
Banco de Fomento Angola, S.A.1	58 897	56 871
Banco Comercial e de Investimentos, S.A.R.L.1	5 688	5 937
Banco BPI Cayman, Ltd	1 357	1 163
Specialised credit
BPI Locação de Equipamentos, Lda	37	79
Asset management and brokerage
BPI Moçambique - Sociedade de Investimento, S.A.	( 669)	( 135)
BPI Gestão de Activos - Sociedade Gestora de Fundos de Investimento Mobiliários, S.A.	5 320	6 596
BPI - Global Investment Fund Management Company, S.A.	478	218
BPI (Suisse), S.A.	3 381	1 262
BPI Alternative Fund: Iberian Equities Long/Short Fund	1 408	2 363
BPI Alternative Fund: Iberian Equities Long/Short Fund Luxemburgo	200
Fundo BPI Obrigações Mundiais (ex-Fundo BPI Taxa Variável) 1		( 181)
Venture capital / development
BPI Private Equity - Sociedade de Capital de Risco, S.A.	356	129
Inter-Risco - Sociedade de Capital de Risco, S.A.1	251	280
Insurance
BPI Vida e Pensões - Companhia de Seguros, S.A.	47 980	18 116
Cosec - Companhia de Seguros de Crédito, S.A. 1	3 092	1 463
Companhia de Seguros Allianz Portugal, S.A.	7 633	4 930
Others
BPI, Inc	12	( 62)
BPI Madeira, SGPS, Unipessoal, S.A.	84	6
BPI Capital Finance
BPI Capital Africa1	( 1 363)	( 1 103)
Finangeste - Empresa Financeira de Gestão e Desenvolvimento, S.A.1	( 1 268)	181
Unicre - Instituição Financeira de Crédito, S.A.1	1 666	1 709
	72 682	117 057

1 Adjusted net income.

4.44. Related parties

The BPI Group's related parties at September 30, 2013 were as follows:

Name of related entity Head Office participation participation Associated and jointly controlled entities of Banco BPI Banco Comercial e de Investimentos, S.A.R.L. Mozambique 30.0% 29.7% Companhia de Seguros Allianz Portugal, SA Portugal 35.0% 35.0% Cosec - Companhia de Seguros de Crédito, SA Portugal 50.0% 50.0% Inter-Risco – Sociedade de Capital de Risco, S.A. Portugal 49.0% Finangeste – Empresa Financeira de Gestão e Desenvolvimento, SA Portugal 32.8% 32.8% Unicre - Instituição Financeira de Crédito, SA Portugal 21.0% 20.7% Pension fund of Employees and Directors of the BPI Group Fundo de Pensões Banco BPI Portugal 100.0% Fundo de Pensões Aberto BPI Acções Portugal 13.6% Fundo de Pensões Aberto BPI Valorização Portugal 42.8%












Fundo de Pensões Aberto BPI Segurança Portugal 27.6%
Fundo de Pensões Aberto BPI Garantia Portugal 12.4%
Shareholders of Banco BPI
La Caixa Group Spain 46.22%
Members of the Board of Directors of Banco BPI
Artur Santos Silva
Fernando Ulrich
Alfredo Rezende de Almeida
António Domingues
António Farinha Morais
António Lobo Xavier
Armando Leite de Pinho
Carlos Moreira da Silva
Edgar Alves Ferreira
Allianz Europe Ltd. - Representada por Herbert Walter
Ignacio Alvarez-Rendueles
Isidro Fainé Casas
José Pena do Amaral
Juan María Nin Génova
Klaus Duhrkop
Manuel Ferreira da Silva
Marcelino Armenter Vidal
Maria Celeste Hagatong
Mário Leite da Silva
Pedro Barreto
Tomaz Jervell

In accordance with IAS 24, related parties are those in which the Bank has significant influence (direct or indirect) in decisions relating to their financial and operating policies – associated and jointly controlled companies and pension funds – and entities which have significant influence on the management policy of the Bank – shareholders (it is assumed that there is significant influence when the participation in capital exceeds 20%) and members of Banco BPI's Board of Directors.

The total assets, liabilities, income and off-balance sheet responsibilities relating to operations with associated and jointly controlled companies and pension funds of employees of the BPI Group at September 30, 2013 are as follows:

	Associated and
	jointly	Pension funds
	controlled	of Employees of
	companies	the BPI Group	Total
Assets
Financial applications	2 758		2 758
Financial assets held for trading and at fair value
through profit or loss		154	154
Loans	34 721		34 721
Other assets	17 430		17 430
	54 909	154	55 063
Liabilities
Deposits and technical provisions	39 076	110 500	149 576
Other financial resources		60 075	60 075
Other liabilities	877		877
	39 953	170 575	210 528
Off balance sheet items
Guarantees given and other contingent liabilities
Guarantees and sureties	9 987		9 987
Responsabilities for services rendered
Deposit and safeguard of assets	1 026 654	867 777	1 894 431
	1 036 641	867 777	1 904 418

The total assets, liabilities, income and off balance sheet responsibilities relating to operations with shareholders, members of the Board of Directors and companies in which members of the Board of Directors have significant influence at September 30, 2013 are as follows:

			Companies in which Members
		of the Board of
		Members of the	Directors of
		Board of	Banco BPI have
	Shareholders of	Directors of	significant
	Banco BPI 1	Banco BPI 2	influence	Total
Assets
Financial applications	82 778			82 778
Financial assets held for trading and at fair value
through profit or loss	377			377
Financial assets available for sale			8	8
Loans	16 030	10 893	227 608	254 531
Investments held to maturity	15 309			15 309
	114 494	10 893	227 616	353 003
Liabilities
Deposits and technical provisions	3 814	6 420	25 787	36 021
Other liabilities	519	25	108	652
	4 333	6 445	25 895	36 673
Off balance sheet items
Guarantees given and other contingent liabilities
Guarantees and sureties	18 371	496	126 216	145 083
Commitments to third parties
Revocable commitments	10		79 200	79 210
Responsabilities for services rendered
Deposit and safeguard of assets	596 205	20 076	346 898	963 179
Other			58 050	58 050
Foreign exchange operations and derivatives
instruments
Purchases	512 421		56 185	568 606
Sales	( 519 197)		( 56 239)	( 575 436)
	607 810	20 572	610 310	1 238 692

1 With significant influence on the BPI Group's management policy. It is assumed that there is significant influence when the participation in capital exceeds 20%.

2 In individual name. The total assets, liabilities, income and off balance sheet responsibilities relating to operations with associated and jointly controlled companies and pension funds of employees of the BPI Group at December 31, 2012 are as follows:

	Associated and
	jointly	Pension funds
	controlled	of Employees of
	companies	the BPI Group	Total
Assets
Financial applications	2 823		2 823
Financial assets held for trading and at fair value
through profit or loss	7	152	159
Loans	34 929		34 929
Other assets	19 608		19 608
	57 367	152	57 519
Liabilities
Financial liabilities held for trading and derivatives	5		5
Deposits and technical provisions	31 352	70 582	101 934
Other financial resources		60 077	60 077
Other liabilities	168		168
	31 525	130 659	162 184
Off balance sheet items
Guarantees given and other contingent liabilities
Guarantees and sureties	10 576		10 576
Responsabilities for services rendered
Deposit and safeguard of assets	942 694	780 900	1 723 594
Foreign exchange operations and derivatives
instruments
Purchases	16 850		16 850
Sales	( 16 532)		( 16 532)
	953 588	780 900	1 734 488

			Companies in which Members of the Board of
		Members of the	Directors of
		Board of	Banco BPI have
	Shareholders of	Directors of	significant
	Banco BPI 1	Banco BPI 2	influence	Total
Assets
Financial applications	17 295			17 295
Financial assets held for trading and at fair value
through profit or loss	387			387
Financial assets available for sale			8	8
Loans	1 715	11 168	229 550	242 433
Other assets			32	32
	19 397	11 168	229 590	260 155
Liabilities
Deposits and technical provisions	5 132	8 576	27 452	41 160
Other liabilities	490	25	111	626
	5 622	8 601	27 563	41 786
Off balance sheet items
Guarantees given and other contingent liabilities
Guarantees and sureties	18 414	496	78 987	97 897
Commitments to third parties
Revocable commitments	207		2 000	2 207
Responsabilities for services rendered
Deposit and safeguard of assets	605 842	21 270	166 577	793 689
Other			135 364	135 364
Foreign exchange operations and derivatives
instruments
Purchases	540 022		57 457	597 479
Sales	( 549 300)		( 57 495)	( 606 795)
	615 185	21 766	382 890	1 019 841

1 With significant influence on the BPI Group's management policy. It is assumed that there is significant influence when the participation in capital exceeds 20%.

2 In individual name.

Total income and costs relating to operations with associated and jointly controlled companies and pension funds of employees and directors of the BPI Group at September 30, 2013 are as follows:

		Associated and jointly Pension funds controlled of Employees of
	companies	the BPI Group	Total
Net income
Financial margin (narrow sense)		( 1 914)	( 1 914)
Net comission income	30 516	24	30 540
General administrative costs	( 603)	( 12 562)	( 13 165)
	29 913	( 14 452)	15 461

Total income and costs relating to operations with shareholders, members of the Board of Directors and companies in which members of the Board of Directors have significant influence at September 30, 2013 are as follows:

	Shareholders of Banco BPI 1	Members of the Board of Directors of Banco BPI 2	Companies in which Members of the Board of Directors of Banco BPI have significant influence	Total
Net income
Financial margin (narrow sense)	1 113	( 23)	452	1 542
Net comission income		10	5	15
	1 113	( 13)	457	1 557

1 With significant influence on the BPI Group's management policy. It is assumed that there is significant influence when the participation in capital exceeds 20%

2 In individual name.

Total income and costs relating to operations with associated and jointly controlled companies and pension funds of employees and directors of the BPI Group at September 30, 2012 are as follows:

	Associated and
	jointly	Pension funds
	controlled	of Employees of
	companies	the BPI Group	Total
Net income
Financial margin (narrow sense)	15	( 1 712)	( 1 697)
Net comission income	28 677	259	28 936
General administrative costs	( 703)	( 12 534)	( 13 237)
	27 989	( 13 987)	14 002

	Companies in
			which Members
			of the Board of
		Members of the	Directors of
		Board of	Banco BPI have
	Shareholders of	Directors of	significant
	Banco BPI 1	Banco BPI 2	influence	Total
Net income
Financial margin (narrow sense)	1 046	( 81)	2 172	3 137
Net comission income	40	8	5	53
	1 086	( 73)	2 177	3 190

1 With significant influence on the BPI Group's management policy. It is assumed that there is significant influence when the participation in capital exceeds 20%

2 In individual name.

5. NOTE ADDED FOR TRANSLATION

These consolidated financial statements are a translation of financial statements originally issued in Portuguese in conformity with the International Financial Reporting Standards as adopted by the European Union, some of which may not conform to or be required by generally accepted accounting principles in other countries. In the event of discrepancies, the Portuguese language version prevails.

Banco BPI

Publicly held company Head Office: Rua Tenente Valadim, no.284, Porto, Portugal Share capital: € 1 190 000 000 Registered in Oporto C.R.C. and corporate body no. 501 214 534

AI Terminal

Banco Comercial Portugues

1913_10-q_2013-11-29_fe3f057f-7764-49e9-9b26-0b9015b2fc12.pdf

Consolidated quarterly information (unaudited accounts)

INDEX

Report

Financial statements and notes

LEADING INDICATORS Amounts in M.€

BPI GROUP'S CONSOLIDATED RESULTS

Consolidated overview

Consolidated net profit

Return on shareholders' equity (ROE)

Capital allocation, recurring profit and ROE by business area – Jan. to Sep. 2013 Amounts in M.€

Loans and resources

Recourse to the European Central Bank of 4.0 Bi.€

Transformation ratio of deposits into loans

Income and costs

Quality of the loan portfolio

Loan portfolio quality – consolidated accounts Amounts in M.€

Cost of credit risk

Loan portfolio quality Amounts in M.€

Profitability, efficiency, loan quality and solvency

DOMESTIC ACTIVITY RESULTS

Net profit

Resources and loans

Resources

Customers resources Amounts in M.€

Loans

Liquidity

Net operating revenue

Net commissions and fees Amounts in M.€

Equity-accounted results of subsidiaries

Operating costs

Operating costs Amounts in M.€

Cost of credit risk

Credit risk cost Amounts in M.€

Quality of the loan portfolio

Loans in arrears for more than 90 days, falling due loans associated, credit at risk and loan impairments

Credit at risk ratios (according to the Bank of Portugal Instruction 23/2011)

Impairments for foreclosure properties

Real estate loans recovery at 30 September 2013 Amounts in M.€

Employee pension liabilities

Financing of pension liabilities Amounts in M.€

Actuarial assumptions

INTERNATIONAL ACTIVITY RESULTS

Net profit

Customer resources and loans

Loans to Customers Amounts in M.€

Securities portfolio

Customers

Physical distribution network

Cards

Automatic and virtual channels

Number of employees

Revenues and costs

Cost of credit risk

Loan portfolio quality Amounts in M.€

Loans in arrears for more than 90 days and impairments

Equity-accounted results of subsidiaries

CAPITAL AND COCO REDEMPTION

Core Tier I ratio according to Bank of Portugal rules of 15.2%

Own funds and own funds requirements Amounts in M.€

EBA's Recommendation on new capital preservation requirements published on 22 July

Assets review by the BCE

Core Tier I capital ratios according to CRD IV / CRR rules

Core Tier I ratios at 30 September 2013

Ongoing core tier 1 capital optimisation measures

Early redemption of additional 588 M.€ of CoCo

Leverage and Liquidity ratios according to CRD IV / CRR rules

Recalculation of the EBA's capital buffer under the previous rules revoked on 22 July 2013

Recalculation of the capital buffer to sovereign debt exposure Amounts in M.€

CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2013 AND DECEMBER 31, 2012 (Translation of balance sheets originally issued in Portuguese - Note 5)

CONSOLIDATED STATEMENTS OF INCOME

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEFOR THE PERIODS ENDED SEPTEMBER 30, 2013 AND 2012

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS ENDED SEPTEMBER 30, 2013 AND 2012

The Accountant The Executive Committee of the Board of Directors

Notes to the consolidated financial statements as of September 30, 2013 and 2012

1. THE FINANCIAL GROUP

2. BASIS OF PRESENTATION AND MAIN ACCOUNTING POLICIES

A) BASIS OF PRESENTATION