Consolidated quarterly information (unaudited accounts)

Banco BPI

30 September 2014

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

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INDEX

Report

Leading indicators 4
Consolidated overview 5
Capital 7
BPI Group's consolidated results 9
Domestic activity results 14
International activity results 24

Financial statements and notes

Consolidated financial statements (unaudited) 29
Notes to the consolidated financial statements 35

LEADING INDICATORS Amounts in M.€

Sep.13 Sep.14 Chg.% Sep.13 Sep.14 Chg.% Sep.13 Sep.14 Chg.% Net income, efficiency and profitability Net income (as reported) 10,1 - 197,5 n.s. 62,6 83,2 32,9% 72,7 - 114,3 n.s. Net income (as reported) per share (EPS) 0,007 -0,140 n.s. 0,045 0,059 30,3% 0,053 -0,081 n.s. Weighted average number of shares 1) 1.384 1.412 2,1% 1.384 1.412 2,1% 1.384 1.412 2,1% Efficiency ratio excl. non-recurring impacts (last 12 months) 2) 83,3% 85,6% 40,3% 35,2% 68,2% 65,6% Return on average total assets (ROA) 0,0% -0,6% 2,7% 3,2% 0,4% 0,0% Return on Shareholders' equity (ROE) 0,7% -12,2% 24,9% 30,1% 4,3% -5,2% Balance sheet Net total assets 3) 37 876 34 696 (8,4%) 6 300 7 657 21,5% 43 011 41 621 (3,2%) Loans to Customers 25 565 23 830 (6,8%) 1 069 1 869 74,8% 26 634 25 699 (3,5%) Deposits 19 214 19 288 0,4% 5 512 6 584 19,4% 24 726 25 872 4,6% Deposits and retail bonds 20 170 19 975 (1,0%) 5 512 6 584 19,4% 25 683 26 559 3,4% On-balance sheet Customer resources 23 177 24 618 6,2% 5 512 6 584 19,4% 28 689 31 201 8,8% Off-balance sheet Customer resources4) 3 242 3 201 (1,3%) 3 242 3 201 (1,3%) Total Customer resources5) 25 771 27 525 6,8% 5 512 6 584 19,4% 31 283 34 109 9,0% Loans to deposits ratio (Instruction 23/2011 BoP) 119% 107% 19% 28% 97% 88% Asset quality Loans in arrears for more than 90 days 956 963 0,7% 56 67 20,7% 1 012 1 030 1,8% Ratio of loans in arrears 6) 3,6% 3,9% 4,9% 3,4% 3,7% 3,9% Impairments cover of loans in arrears 6) 90% 103% 150% 131% 94% 105% Credit at risk 7) 5,0% 5,5% 7,1% 4,8% 5,1% 5,4% Impairments cover of credit at risk 7) 70% 80% 102% 95% 72% 81% Cost of credit risk 8) 0,85% 0,65% 0,62% 1,21% 0,84% 0,68% Pension liabilities Employees pension liabilities 954 1 134 18,8% 954 1 134 18,8% Employees pension funds assets 1 074 1 179 9,8% 1 074 1 179 9,8% Cover of pension obligations 9) 113% 104% 113% 104% Capital Shareholders' equity and minority interests 1 611 1 826 13,3% 616 797 29,4% 2 227 2 623 17,8% CRD IV/CRR phasing in (rules for 2014) Common Equity Tier I 10) 2 585 Risk weighted assets 10) 20 701 Common Equity Tier I ratio 10) 12,5% Leverage ratio 10) 6,0% LCR = Liquidity coverage ratio 150% NSFR = Net Stable Funding Ratio 99% CRD IV/CRR fully implemented Common Equity Tier I 10) 2 012 Risk weighted assets 10) 20 485 Common Equity Tier I ratio 10) 9,8% Leverage ratio 10) 4,7% LCR = Liquidity coverage ratio 150% NSFR = Net Stable Funding Ratio 98% Distribution network and staff Distribution network 11) 717 668 (6,8%) 174 180 3,4% 891 848 (4,8%) 12) 6 328 6 078 (4,0%) 2 429 2 508 3,3% 8 757 8 586 (2,0%) Domestic activity International activity Consolidated

BPI Group staff

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

2) Operating costs as % of net operating revenue.

3) The total assets for each of the geographical segments presented above has not been corrected for the balances resulting from

operations between these segments.

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

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

6) Loans in arrears for more than 90 days.

7) Calculated in accordance with Bank of Portugal Instruction 23/2011.The credit at risk is the sum of: (1) the total amount outstanding on a loan in respect of which there are instalments of principal or interest in arrears for 90 days or more; (2) the total amount outstanding on loans which have been restructured, after having been in arrears for a period of 90 days or more, without adequate reinforcement of guarantees (these should be sufficient to cover the full amount of the outstanding principal and interest) or full payment of interest and other charges in arrears; (3) the total value of loans with instalments of principal and accrued interest in arrears for less than 90 days but in respect of which there is evidence to justify their classification as credit-at-risk, namely the debtor's bankruptcy or winding up.

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

10) Proforma ratios considering the adhesion to the special scheme applicable to deferred tax assets approved in the Shareholders' General Meeting of 17 October 2014. 11) 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).

12) Excludes temporary workers.

Note:

The figures presented in the Directors' Report refer to amounts as reported except when they are expressly indicated to be Proforma figures (considering the retrospective application of IFRS 10). According to the IFRS 10, in 2014 the BPI Group began to fully consolidate the participating interests in the BPI Obrigações and Imfomento funds, and to recognise in liabilities the minority interests in the unit trust funds consolidated using the full consolidation method. The retrospective application of IFRS 10, as envisaged by IAS 8, has the following impacts: increase in net assets by 114 M.€ in Sep.13 and 107 M.€ in Dec. 13 (to 43 125 M.€ and 42 806 M.€ in Sep.13 and Dec.13 proforma, respectively), reduction in shareholders' equity and minority interests by 15 M.€ in Sep.13 and 19 M.€ in Dec.13 (to 2 212 M.€ and 2 287 M.€ in Sep.13 and Dec.13 proforma, respectively) and increase by 0.15 M.€ of the consolidated net profit for September 2013 (to 72.8 M.€ proforma).

CONSOLIDATED OVERVIEW

Capital

At 30 September 2014, the Common Equity Tier 1 (CET1) ratio calculated according to CRD IV / CRR rules amounts to:

CET1 phasing in (rules for 2014): 12.5%;
CET1 fully implemented: 9.8%

The above figures are proforma ratios considering the adhesion to the special scheme applicable to deferred tax assets approved in the Shareholders' General Meeting of 17 October 2014.

On the results of the Comprehensive Assessment Exercise conducted by the European Central Bank (ECB), disclosed on the 26 October 2014, BPI presented, in all cases, capital ratios above the minimum thresholds for the CET1 ratio.

The comprehensive assessment, which comprised an asset quality review (AQR) and a stress test, was performed by the European Central Bank (ECB), in cooperation with the National Competent Authorities, on 130 European banks, including Banco BPI, prior to assuming full responsibility for supervision under the Single Supervisory Mechanism in November 2014.

Risk

The consolidated credit at risk ratio (non-performing loans), calculated in accordance with Bank of Portugal Instruction 23 / 2011, was 5.4% at the end of September 2014. The accumulated impairment allowances in the balance sheet covered the credit at risk at 81% (without considering the coverage by associated collaterals).

Loan impairment charges in the P&L felt from 182 M.€ from January to September 2013 to 141 M.€ in the same period of 2014.

The net credit loss, which corresponds to the amount of impairment charges recognised in the period, net of recoveries of arrear loans and interest written off, decreased from 0.84% from January to September 2013 to 0.68% from January to September 2014, as percentage of the loan portfolio's average balance in annualised terms.

Performance and results

Banco BPI recorded in the period from January to September 2014 a consolidated net loss of 114.3 million euro (M.€). Earnings per share (Basic EPS) were -0.081 € (0.053 € in the same period of 2013).

Excluding non-recurrent costs and losses in the domestic activity of 186.9 M.€, the consolidated net profit from January to September 2014 was 72.5 M.€.

In the 3rd quarter 2014, the net profit excluding non-recurrent items was 40.7 M.€ (vs. -7.7 M.€ as reported).

The consolidated net operating revenue decreased by 26.8% (-219.9 M.€) relative to the period from January to September 2013, which is mainly explained by the fall in profits from financial operations by 242.1 M.€. Profits from financial operations include, in 2014, losses of 137.5 M.€ (before taxes) incurred mainly in the 1st quarter 2014 with the sale of medium and long term public debt of Portugal and Italy.

Net interest income increased by 6.3% (+22.2 M. €) while commissions changed by -1.7% (-4.0 M.€) yoy.

Consolidated operating costs, excluding non-recurring items, registered a slight increase of 0.4% (+1.9 M.€), remaining stable in the domestic activity.

Total Customer resources increased by 2.8 Bi.€, year-on-year (+9.0%), to 34.1 Bi.€. At the end of September 2014, in the consolidated accounts, the transformation ratio of deposits into loans was 88%.

At 30 September 2014 BPI's pension liabilities amounted to 1134 M.€ and were 104% covered by the pension fund. From January to September 2014, the Bank's pension funds posted a nonannualised return of 5.5%.

Until September 2014, BPI early redeemed 2.5 Bi.€ to the ECB, thus reducing to 1.5 Bi.€ the resources borrowed under the LTRO operation.

CAPITAL

Common Equity Tier 1 capital ratio

At 30 September 2014, the Common Equity Tier 1 (CET1) ratio calculated according to CRD IV / CRR rules amounts to:

CET1 phasing in (rules for 2014): 12.5%;
CET1 fully implemented: 9.8%

The above figures are proforma ratios considering the adhesion to the special scheme applicable to deferred tax assets approved in the Shareholders' General Meeting of 17 October 2014.

Own funds and own funds requirements Amounts in M.€

31 Dec. 13 30 Sep. 14 30 Sep.14 proforma after DTA 31 Dec. 13 30 Sep. 14 30 Sep.14 proforma after DTA Common Equity Tier 1 capital 3 375,0 2 547,6 2 585,1 2 373,9 1 766,7 2 011,5 Risk weighted assets 21 616,0 20 937,0 20 701,1 21 125,7 20 517,3 20 485,1 Common Equity Tier 1 ratio 15,6% 12,2% 12,5% 11,2% 8,6% 9,8% CRD IV / CRR Fully implemented CRD IV / CRR Phasing in (rules for 2014)

Leverage and Liquidity ratios

At 30 September 2014, the Leverage1 and Liquidity ratios calculated according to CRD IV / CRR rules are as follows:

Leverage ratio phasing in: 6.0%
Leverage ratio Fully implemented: 4.7%
Liquidity Coverage Ratio (LCR) fully implemented: 150%
Net Stable Funding Ratio (NSFR) fully implemented: 98%

1) Proforma considering the adoption of the special scheme for deferred tax assets.

ECB Comprehensive Assessment

Banco BPI was subject to the EU-wide comprehensive assessment conducted by the European Central Bank (ECB) in cooperation with the National Competent Authorities. 130 banks were subject to this exercise.

The comprehensive assessment was performed in conjunction with Banco of Portugal by the ECB prior to assuming full responsibility for supervision under the Single Supervisory Mechanism in November 2014.

The comprehensive assessment comprised two main pillars:

an asset quality review (AQR)
a stress test

The results of the AQR and stress test under the baseline and adverse scenarios were publicly disclosed on the 26 October 2014.

BPI presented the following main results in the comprehensive assessment:

CET1 Ratio at year end 2013	15.28%
Aggregated adjustments due to the outcome of the AQR	-0.12%
AQR adjusted CET1 Ratio	15.16%
Aggregate adjustments due to the outcome of the baseline scenario of the joint EBA ECB Stress Test to lowest capital level over the 3-year period	-0.24%
Adjusted CET1 Ratio after Baseline Scenario	14.91%
Aggregate adjustments due to the outcome of the adverse scenario of the joint EBA ECB Stress Test to lowest capital level over the 3-year period	-3.56%
Adjusted CET1 Ratio after Adverse Scenario	11.60%

The thresholds for the CET1 ratio were of 8% in the AQR review, 8% in the baseline scenario and 5.5% in the adverse scenario.

BPI GROUP'S CONSOLIDATED RESULTS

Consolidated income statement			Amounts in M.€
			Chg. M.€ Sep.13 /
	Sep. 13	Sep.14	Sep.14
Net interest income	355,0	377,2	22,2
Technical results of insurance contracts	17,3	23,9	6,6
Commissions and other similar income (net)	234,7	230,7	( 4,0)
Gains and losses in financial operations	228,8	( 13,3)	( 242,1)
Operating income and charges	( 15,9)	( 18,6)	( 2,7)
Net operating revenue	819,9	600,0	( 219,9)
Personnel costs, excluding non-recurring costs	275,4	275,3	( 0,1)
Outside supplies and services	180,9	183,7	2,8
Depreciation of fixed assets	23,7	22,8	( 0,9)
Operating costs, excluding non-recurring costs	480,0	481,9	1,9
Non-recurring costs	0,8	26,1	25,3
Operating costs	480,8	508,0	27,2
Operating profit before provisions	339,2	92,0	( 247,1)
Recovery of loans written-off	14,2	12,4	( 1,7)
Loan provisions and impairments	182,5	141,3	( 41,2)
Other impairments and provisions	19,4	15,5	( 3,9)
Profits before taxes	151,4	( 52,4)	( 203,8)
Corporate income tax	32,5	( 1,7)	( 34,2)
Equity-accounted results of subsidiaries	17,6	19,5	1,9
Minority shareholders' share of profit	63,8	83,2	19,4
Net Income	72,7	( 114,3)	( 187,0)

The consolidated net loss of 114.3 M.€ in the period from January to September 2014 has been penalized by non-recurrent items in the domestic activity with a negative impact of 186.9 M.€. Excluding these non-recurrent items, consolidated net profit would have amounted to 72.5 M.€.

The contribution from the domestic activity for consolidated net income was negative by 197.5 M.€ and incorporates 186.9 M.€ related to the after tax impact of the following non recurrent costs and losses:

Losses of 137.5 M.€ (105.9 M.€ after taxes) incurred mainly in the 1st quarter with the sale of medium and long term public debt of Portugal and Italy;

Costs of 26.7 M.€ (20.5 M.€ after taxes) with interests on contingent convertible subordinated bonds (CoCo), incurred in the first six months of the year, since the CoCo were fully repaid in June;
Costs of 26.1 M.€ (20.0 M.€ after taxes) related to early-retirements carried out or agreed (and expected to take place until the end of the year);
Annulation of deferred taxes (tax reporting) related to the losses of 2011 (-20.9 M.€);
Several non-recurrent costs of 19.6 M.€ after taxes.

The international activity had a positive contribution to consolidated net income of 83.2 M.€ (+32.9% relative to the same period of 2013).

Return on shareholders' equity (ROE)

The return on shareholders' equity (ROE) was -5.2% from January to September 2014, as a consequence of the losses recorded in the domestic activity.

In the international activity, in its individual accounts, BFA's posted a return on shareholders' equity (ROE) of 33.2% from January to September 2014 and BCI's ROE reached 17.7%.

Capital allocation, recurring profit and ROE by business area from Jan. to Sep. 2014 Amounts in M.€

		Domestic activity				International activity
	Commer cial Banking	Investment Banking	Shareholdings and other	Total	BFA (individual accounts)	Contribution to consolidated (BFA, BCI and Other)	BPI Group (consolidated)
Capital allocated adjusted (M.€)1	1 804,6	43,0	17,0	1 864,7	662,5	368,3	2 233,0
As % of total	80,8%	1,9%	0,8%	83,5%	-	16,5%	100,0%
Net income (M.€)2)	( 210,6)	10,9	2,1	( 197,5)	165,0	83,2	( 114,3)
ROE3)	-13,6%	33,9%	16,8%	-12,2%	33,2%	30,1%	-5,2%

1) The average capital considered in the calculation of ROE excludes the fair value reserve (net of deferred taxes) relating to the portfolio of available-for-sale financial assets . The allocated capital to each individual area of domestic activity, excluding the fair value reserve, is adjusted to reflect a capital employment equal to the average capital employed in the domestic activity. Accounting capital is used in the international activity.

2) The contribution for consolidated profit of the domestic activity business areas has been adjusted by the capital reallocation.

3) Annualised return; the capital losses realised with the sale of Portuguese and Italian medium and long term public debt (losses of 106 M.€ after taxes) were not annualised.

Loans

At 30 September 2014, the net consolidated Customer loans portfolio amounted to 25.7 Bi.€, which corresponds to a year-on-year contraction of 3.5%. When compared to the previous quarter, the loan portfolio increased by 2%.

Resources

Total Customer resources increased by 2.8 Bi.€, year-on-year (+9.0%), to 34.1 Bi.€¹ . When compared to the previous quarter, total customer resources grew by 6.7%.

¹ Despite the return to the IGCP in June of a 774 M.€ deposit that the IGCP (Portuguese Treasury and Debt Management Agency) held on the bank since late 2011 within the agreement for the partial transfer of pension liabilities to Social Security.

Recourse to the European Central Bank of 1.5 Bi.€

At 30 September 2014, as a consequence of early redemptions of 1.0 Bi.€ in June and 1.5 Bi.€ in September, the amount of funding raised by BPI from the Eurosystem (ECB) decreased to 1.5 Bi.€.

Transformation ratio of deposits into loans

At 30 September 2014, in the consolidated accounts, the transformation ratio of deposits into loans is 88%1 .

Income and costs

Consolidated net operating revenue decreased by 26.8% (-219.9 M.€) relative to the period from January to September 2013, which is mainly explained by the fall in profits from financial operations by 242.1 M.€, from 228.8 M.€ in September 2013 to -13.3 M.€ in September 2014. Profits from financial operations include, in 2014, losses of 137.5 M.€ (before taxes) incurred mainly in the 1st quarter 2014 with the sale of medium and long term public debt of Portugal and Italy.

Net interest income increased by 6.3% (+22.2 M. €) while commissions changed by -1.7% (-4.0 M.€) yoy.

Consolidated operating costs, excluding non-recurring items, registered a slight increase of 0.4% (+1.9 M.€), remaining stable in the domestic activity.

BPI recognized in the income statement, at 30 September 2014, a cost of 26.1 M.€ (before taxes) related to early-retirements carried out and 66 early-retirements already agreed which are expected to take place until the end of the year. Including costs with early-retirements (non-recurring items), operating costs register an increase of +5.7% yoy in consolidated terms and +6.7% in the domestic activity.

The consolidated efficiency ratio – operating costs as a percentage of net operating revenue -, considering the income and costs accounted over the last 12 months and excluding non-recurring impacts in costs and income, was 65.6%.

Quality of the loan portfolio

At 30 September 2014, the ratio of Customer loans in arrears for more than 90 days was situated at 3.9% in the consolidated accounts. The credit at risk 2 ratio stood at 5.4% in the consolidated accounts.

The accumulated impairment allowances in the balance sheet covered at 105% the loans in arrears for more than 90 days and at 81% the credit at risk.

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

²⁾ 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).

Loan portfolio quality – consolidated accounts Amounts in M.€

	Sep. 13		Dec. 13		Sep. 14
	M.€	% of loan portfolio 1)	M.€	% of loan portfolio 1)	M.€	% of loan portfolio 1)
Loans in arrears (+90 days)	1 011,9	3,7%	976,3	3,6%	1 030,4	3,9%
Credit at risk (Instruction 23/2011 BoP)	1 310,1	5,1%	1 277,0	5,1%	1 332,7	5,4%
Loans impairments (in the balance sheet)	947,3	3,4%	978,7	3,6%	1 079,8	4,0%
Write offs (in the period)	35,2		93,4		45,7
Note:
Gross loan portfolio	27 535,8		26 897,1		26 741,2

1) As % of the gross loan portfolio

Cost of credit risk

In the period from January to September 2014 loan impairment charges of 141.3 M.€ were recorded (0.74% of the loan portfolio, in annualised terms). On the other hand, arrear loans and interest previously written off of 12.4 M.€ were recovered (0.07% of the loan portfolio, in annualised terms), with the result that impairments after deducting the abovementioned recoveries amounted to 128.9 M.€, which represents 0.68% of the loan portfolio, in annualised terms.

Loan portfolio quality Amounts in M.€

M.€ % of loan portfolio1) M.€ % of loan portfolio1) Loan impairments 182,5 0,91% 141,3 0,74% Recovery of loans and interest in arrears written-off 14,2 0,07% 12,4 0,07% Loan impairments, after deducting the recovery of loans and interest in arrears written-off 168,3 0,84% 128,9 0,68% Sep.13 Sep.14

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

Profitability, efficiency, loan quality and solvency

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

	30 Sep. 13	30 Sep. 14
Net operating revenue and results of equity accounted subsidiaries / ATA	2,6%	2,0%
Profit before taxation and minority interests / ATA	0,5%	-0,1%
Profit before taxation and minority interests / average shareholders' equity (including minority interests)	10,3%	-1,7%
Personnel costs / net operating revenue and results of equity accounted subsidiaries 1	33,0%	44,4%
Operating costs / net operating revenue and results of equity accounted subsidiaries 1	57,4%	77,8%
Loans in arrears for more than 90 days + doubtful loans / loan portfolio (gross)	4,0%	4,3%
Loans in arrears for more than 90 days + doubtful loans, net of accumulated loan impairments / loan portfolio (net)	0,5%	0,1%
Non-performing loans ratio 2	5,1%	5,4%
Non-performing loans ratio 2, net of accumulated loan impairments / loan portfolio (net) Restructured loans as % of total loans3	1,6%	1,2% 6,7%
Restructured loans not included in non-performing loans ("credit at risk") as % of total loans3		4,6%
Total capital ratio (according to Bank of Portugal rules)	15,0% 4)	12,2% 5)
Tier I (according to Bank of Portugal rules)	15,0% 4)	12,2% 5)
Core Tier I	15,2% 4)	12,2% 5)
Loans (net) to deposits ratio	97%	88%

1) Excluding early-retirement costs.

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

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

4) According to former Bank of Portugal rules in force until 31 Dec.13.

5) According to CRD IV/CRR phasing in rules for 2014.

ATA = Average total assets.

DOMESTIC ACTIVITY RESULTS

Income statement Amounts in M.€

			Chg. M.€ Sep.13 /
	Sep. 13	Sep.14	Sep.14
Net interest income	214,6	206,7	( 7,9)
Technical results of insurance contracts	17,3	23,9	6,6
Commissions and other similar income (net)	193,9	183,0	( 10,9)
Gains and losses in financial operations	161,8	( 99,4)	( 261,2)
Operating income and charges	( 14,9)	( 10,3)	4,6
Net operating revenue	572,7	303,9	( 268,7)
Personnel costs, excluding non-recurring costs	225,3	225,8	0,6
Outside supplies and services	138,3	139,0	0,7
Depreciation of fixed assets	13,8	12,3	( 1,5)
Operating costs, excluding non-recurring costs	377,4	377,2	( 0,2)
Non-recurring costs	0,8	26,1	25,3
Operating costs	378,1	403,3	25,2
Operating profit before provisions	194,5	( 99,4)	( 293,9)
Recovery of loans written-off	12,3	10,6	( 1,7)
Loan provisions and impairments	175,5	128,1	( 47,5)
Other impairments and provisions	17,2	13,3	( 3,9)
Profits before taxes	14,2	( 230,1)	( 244,3)
Corporate income tax	14,3	( 20,1)	( 34,5)
Equity-accounted results of subsidiaries	11,4	13,4	2,0
Minority shareholders' share of profit	1,1	0,9	( 0,2)
Net Income	10,1	( 197,5)	( 207,6)

Net income

The net income from domestic operations for the period January - September 2014 was negative by 197.5 M.€ (net profit of 10.1 M.€ in the same period of 2013), and incorporates 186.9 M.€ related to the after tax impact of the following non-recurrent costs and losses accounted in the first nine months of 2014:

Losses of 137.5 M.€ (105.9 M.€ after taxes) incurred mainly in the 1st quarter with the sale of medium and long term public debt of Portugal and Italy;
Costs of 26.7 M.€ (20.5 M.€ after taxes) with interests on contingent convertible subordinated bonds (CoCo), incurred in the first six months of the year, since the CoCo were fully repaid in June;
Costs of 26.1 M.€ (20.0 M.€ after taxes) related to early-retirements carried out or agreed (and expected to rake place until the end of the year);
Annulation of deferred taxes (tax reporting) related to the losses of 2011 (-20.9 M.€);

Several non-recurrent costs of 19.6 M.€ after taxes.

Resources and loans

Resources

Total Customer resources in the domestic activity (on-balance sheet and off-balance sheet) attained 27.5 Bi€. in the end of September, increasing by 6.8% year-on-year (+1.8 Bi.€). When compared to June 2014, total customer resources register in September 2014 an increase of 5.9% (nonannualized), i.e. of 1.5 Bi.€.

Customers resources				Amounts in M.€
	Sep.13	Dec.13	Sep.14	Chg.% Sep.13/ Sep.14
On-balance sheet resources
Customers' deposits	19 213,8	18 906,9	19 288,5	0,4%
Retail bonds	956,5	912,0	686,8	(28,2%)
Subtotal	20 170,2	19 818,9	19 975,2	(1,0%)
Capitalisation insurance and PPR (BPI Vida) and other	3 006,8	3 205,8	4 642,5	54,4%
On-balance sheet resources	23 177,0	23 024,6	24 617,7	6,2%
Off-balance sheet resources1)	3 241,9	3 238,7	3 201,1	(1,3%)
Total Customer resources2)	25 770,7	26 024,7	27 525,3	6,8%

1) Unit trust funds, PPR and PPA.

2) Corrected for double counting.

Customer deposits amounted to 19.3 Bi.€ at the end of September 2014¹ and, on a comparable basis, grew by 4.6% yoy (+854 M.€).

Capitalisation insurance registered an increase of 54% yoy (+1.6 Bi.€), while off-balance sheet resources (unit trust funds, Retirements savings – PPR - and equity savings – PPA - plans) decreased by 1.3% yoy.

Loans

The Customer loans portfolio in domestic operations contracted by 6.8% (-1.7 Bi.€), in year-on-year terms. Relative to June 2014, the loan portfolio decreased by 1% (non-annualized) (249.4 M.€).

In year-on-year terms:

loans to large and medium-sized companies declined by 5.6% (-0.3 Bi.€), when one takes into account both the Corporate Banking loan book and the BPI Vida e Pensões securitised loan portfolio, which corresponds essentially to bonds and commercial paper issued by large Portuguese companies.
loans domiciled at the Madrid branch fell by 16.8% (-0.3 Bi.€).
loans to the public sector decreased by 20.7% (-0.4 Bi.€).

¹⁾ The trend in deposits in the 1st half was influenced by the withdrawal in June of a deposit of 774 M.€ that the IGCP (Portuguese Treasury and Debt Management Agency) kept on the bank since late 2011 within the agreement for the partial transfer of pension liabilities to Social Security.

The loans to individuals and small businesses portfolio presents a year-on-year decline of 3.8% (-0.5 Bi.€), with decreases of 3.1% (-0.35 Bi.€) in mortgage loans and of 5.8% (-0.1 Bi.€) in loans to small businesses.

			Amounts in M.€
Sep.13	Dec.13	Sep.14	Chg.% Sep.13/ Sep.14
4 185,5	4 049,9	3 683,8	(12,0%)
1 772,3	1 702,8	1 431,6	(19,2%)
2 413,2	2 347,0	2 252,2	(6,7%)
1 211,2	1 158,4	1 169,4	(3,5%)
1 594,8	1 555,1	1 327,1	(16,8%)
733,8	739,5	645,1	(12,1%)
861,0	815,6	682,0	(20,8%)
2 029,3	1 979,1	1 609,1	(20,7%)
109,9	104,6	215,4	95,9%
805,2	771,4	772,4	(4,1%)
191,7	192,6	97,5	(49,2%)
868,9	863,7	486,2	(44,0%)
53,6	46,9	37,6	(29,9%)
13 863,6	13 728,0	13 334,1	(3,8%)
11 475,3	11 386,3	11 123,7	(3,1%)
615,8	601,1	557,8	(9,4%)
152,2	165,0	155,3	2,0%
177,4	164,3	138,0	(22,2%)
1 442,9	1 411,3	1 359,3	(5,8%)
1 881,5	1 725,1	2 046,0	8,7%
167,8	82,8	17,6	(89,5%)
631,1	615,0	643,0	1,9%
25 564,8	24 893,5	23 830,1	(6,8%)

Financial assets available for sale

In the 1st quarter of 2014, Banco BPI sold 50% of the position held in medium and long term public debt of Portugal and Italy, in the nominal amount of 850 million euros and 487.5 million euros, respectively. By the end of 2013, the Bank had already sold its entire position in Irish public debt, in the amount of 335 million euros.

In the 3rd quarter of 2014, Banco BPI sold Portuguese Treasury Bonds amounting to 110 M.€ (nominal value) and reduced the portfolio of Treasury Bills by 1.1 Bi.€.

By the end of September 2014, the portfolio of financial assets available for sale amounted to 4.8 Bi.€, at market prices. This portfolio was comprised by 2.4 Bi.€ of Portuguese Treasury Bills, 852 M.€ of

Portuguese Treasury Bonds, 565 M.€ of Italian public debt, 635 M.€ of corporate bonds, 108 M.€ of equities and 205 M.€ of participating units.

By the end of September 2014, the fair value reserve (before deferred taxes) relative to the financial assets available for sale was negative by 62 M.€.

			31 Dec. 2013	30 Sep. 2014
M.€				Gains / (losses) 1)					Gains / (losses) 1)
	Acquisition value	Book value	in	securities in derivatives	Total	Acquisition value	Book value		in securities in derivatives	Total
Public debt	6 241	6 221	- 69	- 341	- 410	3 693	3 830	148	- 190	- 43
Portugal	5 238	5 163	- 122	- 210	- 332	3 188	3 265	80	- 111	- 31
Of which
TBonds	1 809	1 681	- 130	- 210	- 340	787	852	76	- 111	- 35
TBills	3 429	3 483	8		8	2 400	2 413	4		4
Italy	1 004	1 058	53	- 131	- 78	505	565	67	- 79	- 12
Corporate Bonds	747	794	23	- 65	- 42	601	635	17	- 41	- 25
Equities	131	102	17		17	137	108	17		17
Other	310	291	- 2		- 2	241	205	- 12		- 12
Total	7 429	7 408	- 31	- 406	- 437	4 672	4 777	170	- 232	- 62

Portfolio of assets available for sale Amounts in M.€

1) Fair value reserve before deferred taxes. Includes the impact of interest rate hedging.

Liquidity

Until September 2014, BPI amortised in advance 2.5 Bi.€ of resources raised from the European Central Bank (ECB) (1.0 Bi.€ in June and 1.5 Bi.€ in September), thus reducing total funding obtained to 1.5 Bi.€. The amount of resources from the ECB is now lower than the value of the Portuguese Treasury Bills portfolio held, which amounted to 2.4 Bi.€ by the end of September.

On the same date, BPI still had 6.4 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 1.2 Bi.€ of the MLT Eurozone sovereign debt held by BPI in portfolio will be redeemed.

Net operating revenue

Net operating revenue generated by domestic operations decreased by 268.7 M.€, from 572.7 M.€ in September 2013 to 303.9 M.€ in September 2014. This reduction is mainly explained by the fall in profits from financial operations from 161.8 M.€ in September 2013 to -99.4 M.€ in September 2014 (change of -261.2 M.€), as in the period from January to September 2013 this caption includes capital gains of 129 M.€ with the sale of Treasury Bonds acquired in 2012, while in the first nine months of 2014 it includes losses of 137.5 M.€ generated mainly in the 1st quarter of 2014 with the sale of 50% of the position in Portuguese and Italian medium and long term public debt.

Net interest income decreased by 3.7% (-7.9 M.€) yoy. The fall in net interest income reflects:

the negative volume effect from the reduction of the loan portfolio, intensified, though with less extent, by the decrease in spread on loans to corporates;
high cost of term deposits. It is worth mentioning that the margin on term deposits has been improving gradually, from 1.83% above Euribor in the quarter finishing in September 2013 to 1.54% in the 3rd quarter of 2014, an improving trend that should remain;
the reduction in interest income from the portfolio of T-Bills and the portfolio of T-Bonds by 36 M.€ which was offset by the reduction of 38.3 M.€ of interest cost with CoCo – fully repaid in June – and that amounted, in the first six months of 2014, to 26.7 M.€;
net interest income is strongly affected by Euribor interest rates at historical minimums, as it is directly reflected in the contraction in the average margin on sight deposits (average Euribor 3M in the period from January to September 2014 stood at 0.25%);

Commissions (net) decreased by 5.6% year-on-year (-10.9 M.€), since the reduction in Commercial Banking commissions by 11.3 M.€ (-7.6%) and in Asset Management commissions by 0.7 M.€ (-2.2%) was only partially offset by the increase in Investment Banking commissions by 1.1 M.€ (+9.1%).

Net commissions and fees Amounts in M.€

	30 Sep. 13	30 Sep. 14	Chg. M.€	Chg.%
Commercial banking 1)	149,6	138,3	- 11,3	(7,6%)
Asset management	31,7	31,1	- 0,7	(2,2%)
Investment banking 1)	12,5	13,7	+1,1	9,1%
Total	193,9	183,0	- 10,9	(5,6%)

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

Equity-accounted results of subsidiaries

The equity-accounted results of subsidiaries in domestic operations amounted to 13.4 M.€, which corresponds to a year-on-year increase of +2.0 M.€. The contribution of the subsidiaries from the insurance sector amounted to 10.7 M.€ (contribution of 7.0 M.€ from Allianz Portugal and 3.7 M.€ from Cosec).

Equity-accounted earnings Amounts in M.€

	30 Sep. 13	30 Sep. 14	Chg. M.€
Insurance companies	10,7	10,7	- 0,0
Allianz Portugal	7,6	7,0	- 0,6
Cosec	3,1	3,7	+0,6
Finangeste	( 1,3)	( 0,2)	+1,1
Unicre	1,7	2,6	+1,0
Other	0,3	0,2	- 0,1
Total	11,4	13,4	+2,0

Operating costs

Recurring operating costs stood stable in the domestic activity.

Operating costs Amounts in M.€

	30 Sep. 13	30 Sep. 14	Chg. M.€	Chg.%
Personnel costs, excluding non-recurring costs	225,3	225,8	+0,6	0,3%
Outside supplies and services	138,3	139,0	+0,7	0,5%
Depreciation of fixed assets	13,8	12,3	- 1,5	(10,7%)
Operating costs, excluding non-recurring costs	377,4	377,2	- 0,2	(0,0%)
Non-recurring costs1)	0,8	26,1	+25,3	-
Operating costs	378,1	403,3	+25,2	6,7%
Operating costs as a % of net operating revenue (last 12 months) 2)	83,3%	85,6%

1) Costs with early-retirements and includes in Jan. to Sep. 2013 a gain of 3.3 M.€ resulting from changes in the calculation of the death subsidy following the publication of Decree-Law 13/2013 of 25 January, which gave rise to a decrease in pension liabilities.

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

Recurring personnel costs were up by 0.3% yoy (+0.6 M.€), third-party supplies and services registered a 0.5% increase (+0.7 M.€), while depreciation and amortization decreased 10.7% (-1.5 M.€) yoy.

Operating costs as reported, which include costs with early-retirements, (4.1 M.€ in September 13 and 26.1 M.€ in September 14), increased by 6.7% yoy (+25.2 M.€).

The efficiency ratio in domestic operations – operating costs as a percentage of net operating revenue –, excluding non-recurring impacts in income and costs, was situated at 85.6% in the 12 month period ending in September 2014.

Cost of credit risk

In the period from January to September 2014 loan impairment charges of 128.1 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 0.71% in September 2014, in annualised terms (0.91% in the same period 2013).

On the other hand, arrear loans and interest of 10.6 M.€ previously written off were recovered (0.06% of the loan portfolio in annualised terms), with the result that impairments after deducting the abovementioned recoveries amounted to 117.4 M.€ in the period from January to September 2014, which represents 0.65% of the loan portfolio in annualised terms.

Credit risk cost Amounts in M.€

	Sep.13		Sep.14
	M.€	% of loan portfolio1)	M.€	% of loan portfolio1)
Loan impairments	175,5	0,91%	128,1	0,71%
Recovery of loans and interest in arrears written-off	12,3	0,06%	10,6	0,06%
Loan impairments, after deducting the recovery of loans and interest in arrears written-off	163,2	0,85%	117,4	0,65%

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

Quality of the loan portfolio

At 30 September 2014, the ratio of Customer loans in arrears for more than 90 days stood at 3.9% 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 103% in September 2014.

The credit at risk ratio, calculated in accordance with Bank of Portugal1) Instruction 23/2011 was 5.5% on that date. The accumulated impairment allowances in the balance sheet represented 80% of the credit at risk.

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. 13		Dec. 13		Sep. 14
	M.€	% of loan portfolio 1)	M.€	% of loan portfolio 1)	M.€	% of loan portfolio 1)
Loans in arrears (+90 days)	956,3	3,6%	925,9	3,6%	963,2	3,9%
Credit at risk (Instruction 23/2011 BoP)	1 228,6	5,0%	1 203,3	5,0%	1 239,7	5,5%
Loans impairments (in the balance sheet)	863,9	3,3%	904,0	3,5%	991,7	4,0%
Write offs (in the period)	35,2		84,8		39,5
Note:
Gross loan portfolio	26 389,5		25 755,9		24 792,6

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

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 23/2011.

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

		Sep. 13 Dec. 13			Sep. 14
	M.€	% of loan portfolio 1)	M.€	% of loan portfolio 1)	M.€	% of loan portfolio 1)
Corporate banking	612,3	6,4%	618,4	6,7%	634,5	7,7%
Individuals Banking	611,7	4,3%	580,1	4,1%	600,1	4,3%
Mortgage loans	392,4	3,3%	382,1	3,3%	403,0	3,5%
Other loans to individuals	47,5	4,8%	40,5	4,2%	49,3	5,5%
Small businesses	171,7	10,8%	157,5	10,1%	147,8	9,9%
Other	4,7	0,8%	4,8	0,8%	5,0	0,8%
Domestic activity	1 228,6	5,0%	1 203,3	5,0%	1 239,7	5,5%

1) As % of the gross loan portfolio

Impairments for foreclosure properties

At 30 September 2014, foreclosed properties amounted to 176.6 M.€, in terms of gross balance sheet value. The accumulated amount of impairment allowances for foreclosed properties of 32.5 M.€, covered 18.4% of their gross balance sheet value. The net value of these properties was therefore 144.2 M.€, which compared to a market value of these properties of 174.3 M.€.

Real estate loans recovery Amounts in M.€

Sep.13 Dec.13 Sep.14 Mortgage Gross value 65,6 66,6 72,6 Impairments 29,6 2,7 2,9 Coverage by impairments 45,0% 4,0% 4,0% Net value 36,1 63,9 69,7 Appraisal 79,6 78,5 86,3 Other Gross value 107,2 99,9 104,0 Impairments 44,2 30,5 29,5 Coverage by impairments 41,2% 30,6% 28,4% Net value 63,1 69,4 74,5 Appraisal 95,9 81,9 88,0 Total Gross value 172,8 166,5 176,6 Impairments 73,7 33,2 32,5 Coverage by impairments 42,7% 19,9% 18,4% Net value 99,1 133,3 144,2 Appraisal 175,6 160,4 174,3

Employee pension liabilities

At 30 September 2014 BPI's pension liabilities amounted to 1134 M.€ and are 104% covered by the pension fund.

Financing of pension liabilities Amounts in M.€

	30 Sep. 13	31 Dec.13	30 Sep. 14
Pension obligations	954,4	1 082,4	1 134,0
Pension funds	1 074,1	1 131,9	1 178,9
Financing surplus	119,6	49,6	44,9
Cover of pension obligations	112,5%	104,6%	104,0%
Total actuarial deviations1)	( 23,1)	( 92,4)	( 75,1)
Pension fund return	10,1%	16,2%	5,5%

1) Recognized directly in Shareholders' equity (OCI - Other Comprehensive Income), in accordance with the revision of IAS19 which became mandatory from 1 Jan. 2013.

Pension funds' income

In the period from January to September 2014, the Bank's pension funds posted a non-annualised return of 5.5%.

It should be pointed out that, up till the end of September 2014, the actual return achieved by Banco BPI's pension fund since its creation in 1991 was 9.3% per year, and that in the last ten, five and three years, the actual annual returns were 7.1%, 7.5% and 14.1%, respectively.

Change in actuarial assumptions

At the end of June 2014, BPI reduced the discount rates by 0.5 p.p. (from 4.33% to 3.83% for current employees and from 3.50% to 3.00% in the case of retirees¹ ) and reduced by 0.25 p.p. the salary growth rate (from 1.5% to 1.25%) and the pensions growth rate (from 1.0% to 0.75%).

In the 3rd quarter of 2014 BPI did not make any change in the actuarial assumptions.

Actuarial assumptions

	Dec.12	Jun.13	Dec.13	Jun.14	Sep.14
Discount rate - current employees	4,83%	4,83%	4,33%	3,83%	3,83%
Discount rate - retirees	4,00%	4,00%	3,50%	3,00%	3,00%
Salary growth rate	1,50%	1,50%	1,50%	1,25%	1,25%
Pensions growth rate	1,00%	1,00%	1,00%		0,75%
Expected pension fund rate of return	5,50%	4,50%	4,00%	3,50%	3,50%
Mortality table	(M): TV 73/77 – 1 year (1)		(M): TV 73/77 – 2 years (2)
	(W): TV 88/ 90 – 1 year (1)		(W): TV 88/ 90 – 3 years (2)

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

2) Men (M) and Women (W) were assumed to be two years and three years younger than their actual age, respectively, that procedure translating into a higher life expectancy.

¹⁾ The amount of pension liabilities that result from the use of discount rates for current and retirees employees of 3.83% and 3.00%, respectively, is similar to the one obtained in the case a unique global discount rate of 3.5% was used for the total population (4.5% in June 2013 and 4.0% in December 2013).

INTERNATIONAL ACTIVITY RESULTS

Net profit

The international activity's net profit stood at 83.2 M.€ in the period January-September 2014 (+33% over the 62.6 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 78.5 M.€1 , 33% higher than the contribution in the same period last year (58.9 M.€). Minority interests of 82.3 M.€ were recognised in BFA's net profit (62.7 M.€ in September 2013).

The contribution to the consolidated net profit of the 30% participating interest in BCI (Mozambique), which is equity-accounted, stood at 5.6 M.€ (5.7 M.€ from January to September 2013).

Income statement	Amounts in M.€
------------------	----------------

	Sep. 13	Sep.14	Chg. M.€ Sep.13 / Sep.14
Net interest income	140,4	170,5	30,1
Technical results of insurance contracts
Commissions and other similar income (net)	40,8	47,7	6,9
Gains and losses in financial operations	67,0	86,1	19,1
Operating income and charges	( 1,0)	( 8,3)	( 7,3)
Net operating revenue	247,3	296,1	48,8
Personnel costs	50,1	49,5	( 0,7)
Outside supplies and services	42,6	44,7	2,1
Depreciation of fixed assets	9,9	10,5	0,6
Operating costs	102,6	104,7	2,0
Operating profit before provisions	144,6	191,4	46,8
Recovery of loans written-off	1,8	1,8	( 0,0)
Loan provisions and impairments	6,9	13,2	6,3
Other impairments and provisions	2,3	2,2	( 0,1)
Profits before taxes	137,3	177,7	40,5
Corporate income tax	18,2	18,4	0,2
Equity-accounted results of subsidiaries	6,2	6,2	( 0,1)
Minority shareholders' share of profit	62,7	82,3	19,6
Net Income	62,6	83,2	20,6

BFA's return on the average Shareholders' equity (individual accounts) stood at 33.2% from January to September 2014 and BCI's return on the average Shareholders' equity reached 17.7%.

The return on the average Shareholders' equity allocated to the international activity, after consolidation adjustments, i.e. after the impact of taxes on dividends, stood at 30.1% from January to September 2014.

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

Banco BPI 3rd quarter 2014 consolidated results 24/28

Customer resources and loans

Total Customer resources in the international activity, measured in euro (consolidation currency), have increased by 19.4%1 , reaching 6 583.6 M.€ in September 2014.

Customers resources				Amounts in M.€
	Sep.13 Dec.13		Sep.14	Chg.% Sep.13/ Sep.14
Sight deposits	2 993,2	3 028,6	3 355,8	12,1%
Term deposits	2 519,3	2 616,0	3 227,8	28,1%
Total	5 512,5	5 644,6	6 583,6	19,4%

BFA's market share in deposits reached 14.8% in August 2014, granting it the second post in the Angolan market ranking.

The loans to Customers portfolio, expressed in euro, increased 75%1), from 1 068.9 M.€ in September 2013, to 1 868.7 M.€ in September 2014. This growth occurred almost entirely in the 3rd quarter of 2014.

For its part, the significant increase of 758 M.€ of the loan portfolio observed in the third quarter of 2014 is largely explained by a loan made to the Angolan State.

Loans to Customers Amounts in M.€

	Sep.13	Dec.13	Sep.14	Chg.% Sep.13/ Sep.14
Performing loans	1 081,7	1 081,5	1 864,4	72,4%
Loans in arrears	57,6	52,0	69,2	20,3%
Loan impairments	( 77,4)	( 69,5)	( 79,9)	3,2%
Interests and other	7,1	7,7	15,0	111,7%
Total	1 068,9	1 071,6	1 868,7	74,8%
Guarantees	211,5	227,6	477,9	126,0%

Securities portfolio

At 30 September 2014, BFA's securities portfolio totalled 2 873 M.€, or 38% of the Bank's assets. The portfolio of short-term securities, comprising Treasury Bills, amounted to 658 M.€ at the end of September (+245 M.€ relative to September 2013) and the Treasury Bonds portfolio amounted to 2 208 M.€ (+607 M.€ relative to September 2013).

Customers

The number of Customers has increased by 9.3%, from 1.2 million Customers in September 2013 to 1.3 million Customers in September 2014.

¹⁾ When expressed in American dollars, Customer resources increased 12.1% yoy and the loan portfolio increased 64% 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 3.4%, over September 2013. Five new branches and an investment centre were opened over the last 12 months. At the end of September 2014, the distribution network comprised 155 branches, 9 investment centres and 16 corporate centres.

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 25.3% market share in September 2014 in terms of valid debit cards. At the end of September 2014, BFA had 883 thousand valid debit cards (Multicaixa cards) and 16 310 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 (484 thousand subscribers of BFA NET in September 2014, of which 475 thousand are individuals) and an extensive terminal network with 358 ATM and 6 028 active point-of-sale (POS) terminals connected to the EMIS network, corresponding to market shares of 15.2% (ranking 2nd) and 24.4% (ranking 1st), respectively.

Number of employees

BFA's workforce at the end of September 2014 stood at 2 490 employees, which represents an increase in staff of 73 (+3.0%) relative to the staff complement in September 2013. At the end of September 2014, BFA's workforce represented approximately 29% of the Group's total number of Employees.

Revenues and costs

Net operating revenue in the international activity reached 296.1 M.€ from January to September 2014, corresponding to an increase of +19.7% yoy (+48.8 M.€).

This growth was mainly explained by the increase in net interest income (+30.1 M.€) and in profits from financial operations (+19.1 M.€).

Operating costs have increased by 2.0% (+2.0 M.€) over the January - September 2013 period.

Personnel costs decreased by 1.3% (-0.7 M.€) yoy, third-party supplies and services increased by 5.0% yoy (+2.1 M.€) and depreciation and amortization increased by 5.9% (+0.6 M.€).

The ratio "operating costs as percentage of net operating revenue" stood at 35.2% in the period from September 2013 to September 2014 (12 months).

Cost of credit risk

In the international activity, loan provision charges were 13.2 M.€ in the period from January to September 2014, which corresponded to 1.40% 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 11.4 M.€ the period from January to September 2014, corresponding to 1.21% of the average performing loan portfolio in annualised terms.

Loan impairments and recoveries Amounts in M.€

	Sep.13		Sep.14
	M.€	% of loan portfolio1)	M.€	% of loan portfolio1)
Loan impairments	6,9	0,84%	13,2	1,40%
Recovery of loans and interest in arrears written-off	1,8	0,22%	1,8	0,19%
Loan impairments, after deducting the recovery of loans and interest in arrears written-off	5,1	0,62%	11,4	1,21%

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

At 30 September 2014, the ratio of Customer loans in arrears for more than 90 days stood at 3.4%. The provisioning coverage of loans in arrears for more than 90 days stood, at the end of September 2014, at 131%.

Loans in arrears for more than 90 days and impairments

	Sep. 13		Dec. 13		Sep. 14
	M.€	% of loan portfolio 1)	M.€	% of loan portfolio 1)	M.€	% of loan portfolio 1)
Loans in arrears (+90 days)	55,7	4,9%	50,4	4,4%	67,2	3,4%
Credit a risk (Instruction 23/2011 BoP)	81,5	7,1%	73,8	6,5%	93,1	4,8%
Loans impairments (in the balance sheet)	83,4	7,3%	74,7	6,5%	88,1	4,5%
Write offs (in the period)			8,6		6,1
Note:
Gross loan portfolio	1 146,4		1 141,1		1 948,6

1) As % of the gross loan portfolio

Equity-accounted results of subsidiaries

In the international activity, the equity-accounted earnings of subsidiaries amounted to 6.2 M.€ in the period from January to September 2014 (-0.1 M.€ over the same period of 2013)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 16.6% yoy increase in net total assets. Customer deposits have grown by 17.1% yearon-year, to 1 665 M.€ at the end of September 2014, while the Customer loan portfolio has expanded by 26.7% year-on-year, to 1 334 M.€. BCI market shares in deposits and loans, at the end of August 2014, reached 28.5% and 29.8%, respectively.

At the end of September 2014, BCI served 966 thousand clients (+39% relative to September 2013) through a network of 146 branches (+16 than one year before), representing 27.2% of the total Mozambican banking system distribution network. The staff complement reached 2 312 Employees at 30 September 2014 (+10.5% than in September 2013).

¹⁾ BCI's total contribution to consolidated net profit was of 5.7 M.€ in September 2013 and 5.6 M.€ in September 2014, given that, besides the equity-accounted results, deferred tax relating to the distributable earnings of BCI is recorded in the caption "Corporate income tax" (0.5 M.€ in September 2013 and 2014).

Banco BPI, S.A.

Consolidated financial statements as of September 30, 2014 and 2013

CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013 PROFORMA (Translation of balance sheets originally issued in Portuguese - Note 5)

								(Am ts e oun	ed in t hou xpr ess	ds of E ) san uro
			30 Sep . 14		31 Dec . 13 Pro for ma	01 Jan . 13 Pro for ma
	Not es	efo Am ts b oun re imp airm ent , dep iati and rec on isa tion ort am	Imp airm ent , iati dep rec on and isa tion ort am	Net	Net	Net		Not es	Sep 30 . 14	31 Dec . 13 Pro for ma	01 Jan . 13 Pro for ma
AS SET S							LIA BIL ITIE S
Cas h a nd dep osit l ba nks s at ntra ce	4.1	1 3 65 507		1 3 65 507	1 3 72 211	1 2 69 365	Re s of l ba nks ntra sou rce ce	4.1 5	1 5 32 377	4 1 40 068	4 2 70 918
Dep osit s at oth red it in stitu tion er c s	4.2	39 7 9 84		39 7 9 84	46 6 8 63	45 3 4 42	for Fin ial l iab ilitie s h eld trad ing anc	6/4 4.1 .4	34 2 2 20	25 5 2 45	34 0 1 64
Fin ial a ts h eld for trad ing and fair lue at anc sse va							Res of oth red it in stitu tion our ces er c s	4.1 7	1 6 50 837	1 4 53 249	2 5 68 421
fit o thro ugh r lo pro ss	4.3 /4.4	2 2 13 623		2 2 13 623	1 3 06 717	1 1 22 131	Re s of nd oth er d ebt sto sou rce cu me rs a s	4.1 8	27 27 0 7 52	25 61 7 4 88	24 76 2 7 37
Fin ial a ts a vai lab le fo le anc sse r sa	4.5	7 5 62 434	94 69 9	7 4 67 735	9 6 24 243	10 20 8 6 11	De bt s ritie ecu s	4.1 9	2 2 58 728	2 5 98 455	3 7 87 627
Loa nd adv red it in stitu tion es t ns a anc o c s	4.6	2 3 25 220	3	2 3 25 217	1 8 86 070	1 7 10 727	Fin ial l iab ilitie latin nsfe rred g to tra set anc s re as s	4.2 0	1 1 32 308	1 3 87 296	1 5 90 984
Loa nd adv es t usto ns a anc o c me rs	4.7	26 74 1 2 17	1 0 42 389	25 69 8 8 28	25 96 5 1 33	27 34 6 8 22	He dgi der ivat ives ng	4.4	31 7 0 35	54 8 4 58	81 4 9 83
Hel d to turi ty i stm ent ma nve s	4.8	10 3 6 97		10 3 6 97	13 6 8 77	44 5 2 98	Pro visi ons	4.2 1	10 5 4 79	12 4 0 38	13 8 4 98
Hed gin g d eriv ativ es	4.4	14 9 4 38		14 9 4 38	19 4 0 43	28 0 7 37	Tec hnic al p isio rov ns	4.2 2	3 6 67 893	2 6 89 768	2 2 55 364
Inve ties stm ent pro per	4.9	15 5 5 28		15 5 5 28	16 4 9 49	16 9 6 06	Tax lia bilit ies	4.2 3	58 07 0	57 71 1	12 0 2 62
Oth er t ible set ang as s	4.1 0	72 0 2 33	51 8 4 01	20 1 83 2	19 7 3 37	21 0 6 89	Co ntin t co rtib le s ubo rdin ate d b ond gen nve s	4.2 4		92 0 4 33	1 2 00 279
Inta ngi ble ets ass	4.1 1	11 0 2 02	90 39 6	19 80 6	19 14 9	14 01	7 O the bor din d d ebt d p arti cipa ting bo nds ate r su an	4.2 5	69 52 8	13 6 9 31	15 6 3 31
Inve s in iate d c ies and joi ntly stm ent as soc om pan							Oth er l iab ilitie s	4.2 6	59 3 0 77	58 9 9 53	64 2 9 96
trol led ities ent con	4.1 2	23 9 8 58		23 9 8 58	22 1 9 92	20 2 2 55	T ota l Li abi litie s		38 99 8 3 04	40 51 9 0 93	42 64 9 5 64
Tax set as s	4.1 3	45 9 0 94		45 9 0 94	53 9 6 92	61 7 6 92	S HA RE HO LD ER S' E QU ITY
Oth ts er a sse	4.1 4	85 9 5 68	36 68 5	82 2 8 83	71 1 04 6	65 0 8 17	Sub ibed sh pita l scr are ca	4.2 7	1 2 93 063	1 1 90 000	1 1 90 000
							Oth quit y in stru nts er e me	4.2 8	4 051	3 414	8 558
							Rev alu atio n re ser ves	4.2 9	( 7 39) 0 1	( 3 ) 62 294	( 5 ) 07 524
							Oth nd ined rnin reta er r ese rve s a ea gs	4.3 0	1 1 44 727	1 0 40 707	78 5 9 60
							(Tre es) har asu ry s	4.2 8	( 1 87) 3 9	( 1 90) 7 0	( 1 72) 8 2
							Con soli dat ed inc f th e B PI G net om e o rou p	4.4 4	( 1 47) 14 3	66 97 3	24 9 1 35
							Sha reh old ' eq uity ribu tab le t o th har eho att ers e s	lde f B PI rs o	2 2 43 368	1 9 21 710	1 7 07 857
							Min orit y in tere sts	4.3 1	37 9 3 58	36 5 5 19	34 4 7 88
							Tot al S har eho lde rs' Equ ity		2 6 22 726	2 2 87 229	2 0 52 645
Tot al A ts sse		43 40 3 6 03	1 7 82 573	41 62 1 0 30	42 80 6 3 22	44 70 2 2 09	Tot al L iab iliti and Sh hol der s' E qui ty es are		41 62 1 0 30	42 80 6 3 22	44 70 2 2 09

OF F B AL AN CE SH EET ITE MS
Gua iven d o the ntin t lia bilit ies tee ran s g an r co gen O f w hich :	4.3 2			2 1 93 140	2 1 06 771	3 0 12 038
[Gu nte and reti es] ara es su				[1 8 52 584 ]	[1 8 32 700 ]	[2 8 20 405	]
[Ot her s]				[34 56] 0 5	[27 71] 4 0	[19 3] 1 63

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

4.32 3 179 161 3 020 342 3 856 696

The Accountant

Commitments

The Executive Committee of the Board of Directors

CONSOLIDATED STATEMENTS OF INCOME

FOR THE PERIODS ENDED SEPTEMBER 30, 2014 AND 2013 PROFORMA

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

				(Amounts expressed in thousands of Euro)
	Notes	3rd Quarter 2014	3rd Quarter 2013 Proforma	30 Sep. 14	30 Sep. 13 Proforma
Interest and similar income		320 071	346 457	991 277	1 065 518
Interest and similar expenses		( 185 728)	( 234 207)	( 636 230)	( 733 823)
Financial margin (narrow sense)	4.33	134 343	112 250	355 047	331 695
Gross margin on unit links	4.34	1 337	776	3 330	2 168
Income from equity instruments		140	53	3 505	2 929
Net commission relating to amortised cost	4.35	4 873	5 478	15 331	18 317
Financial margin		140 693	118 557	377 213	355 109
Technical result of insurance contracts	4.36	8 985	6 022	23 865	17 269
Commissions received		83 434	78 167	232 705	232 051
Commissions paid		( 9 488)	( 10 605)	( 28 855)	( 30 956)
Other income, net		9 859	9 726	26 870	32 696
Net commission income	4.37	83 805	77 288	230 720	233 791
Gain and loss on operations at fair value		47 783	33 701	120 777	90 414
Gain and loss on assets available for sale		( 4 362)	5 586	( 135 454)	134 662
Interest and financial gain and loss with pensions		579	1 055	1 413	3 139
Net income on financial operations	4.38	44 000	40 342	( 13 264)	228 215
Operating income		10 366	6 284	26 597	16 561
Operating expenses		( 12 499)	( 10 687)	( 33 405)	( 26 803)
Other taxes		( 3 938)	( 1 440)	( 11 749)	( 4 319)
Net operating income	4.39	( 6 071)	( 5 843)	( 18 557)	( 14 561)
Operating income from banking activity		271 412	236 366	599 977	819 823
Personnel costs	4.40	( 120 132)	( 91 607)	( 301 418)	( 276 161)
General administrative costs	4.41	( 62 743)	( 61 371)	( 183 743)	( 180 904)
Depreciation and amortisation	4.10/4.11	( 7 785)	( 7 802)	( 22 812)	( 23 701)
Overhead costs		( 190 660)	( 160 780)	( 507 973)	( 480 766)
Recovery of loans, interest and expenses		3 946	3 802	12 424	14 170
Impairment losses and provisions for loans and guarantees, net	4.21	( 41 213)	( 31 891)	( 141 275)	( 182 473)
Impairment losses and other provisions, net	4.21	( 9 217)	( 8 880)	( 15 536)	( 19 440)
Net income before income tax		34 268	38 617	( 52 383)	151 314
Income tax	4.42	( 16 619)	( 7 295)	1 711	( 32 555)
Earnings of associated companies (equity method)	4.43	8 134	7 399	19 519	17 590
Global consolidated net income		25 783	38 721	( 31 153)	136 349
Income attributable to minority interests	4.31	( 33 515)	( 24 763)	( 83 194)	( 63 518)
Consolidated net income of the BPI Group	4.44	( 7 732)	13 958	( 114 347)	72 831
Earnings per share (in Euro) Basic		-0.005	0.010	-0.081	0.053

Diluted -0.005 0.010 -0.081 0.052

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, 2014 AND 2013 PROFORMA

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

		30 S 14 ep.		30 S	13 P rofo et. rma
	Att ribu tab le to sha reh old ' of the BP I ers Gro up	Att ribu tab le to mi ity nor inte ts res	Tot al	Att ribu tab le to sha reh old ' of the BP I ers Gro up	Att ribu tab le to mi ity nor inte ts res	Tot al
Con sol idat ed net inc om e	( 11 4 34 7)	83 194	( 31 153 )	72 831	63 518	13 6 34 9
Inco inc lud ed in t he c olid d st of inco not ate ate nts me ons me me :
Item s th at w ill n ot b clas sifi ed to n et i e re nco me :
Act ial d evia tion uar s	17 018		17 018	66 547		66 547
Tax effe ct	( 3 9 46)		( 3 9 46)	( 17 ) 864		( 17 ) 864
	13 072	0	13 072	48 683	0	48 683
sifi et i Item s th at m ay b clas ed sub tly to n e re seq uen nco me :
For eign han latio n di ffer ge t exc rans enc es	27 781	24 928	52 709	( 14 30 9)	( 11 575 )	( 25 884 )
Rev alua tion s of fina ncia l as ilab le fo le sets res erve ava r sa	374 988		374 988	76 484		76 484
T ffec t ax e	( 11 0 6 14)		( 11 0 6 14)	( 22 850 )		( 22 850 )
Val uati f as of a ciat ed c anie sets on o sso omp s	21 509		21 509	2 5 70		2 5 70
T ffec t ax e	( 6 7 38)		( 6 7 38)	( 42 9)		( 42 9)
	306 926	24 928	33 1 85 4	41 466	( 11 575 )	29 891
of Inco not inc lud ed in t he c olid ate d st ate nts inco me ons me me	319 998	24 928	34 4 92 6	90 149	( 11 ) 575	78 574
Con sol idat ed hen sive inc com pre om e	205 65 1	108 122	31 3 77 3	162 980	51 943	21 4 92 3

		3rd Qua 20 14 rter		3rd Qua	20 13 P rofo rter rma
	Att ribu tab le to sha reh old ' of the BP I ers Gro up	Att ribu tab le to mi ity nor inte ts res	Tot al	Att ribu tab le to sha reh old ' of the BP I ers Gro up	Att ribu tab le to mi ity nor inte ts res	Tot al
Con sol idat ed inc net om e	( 7 732 )	33 515	25 783	13 767	24 916	38 683
Inco not inc lud ed in t he c olid ate d st ate nts of inco me ons me me :
Item s th ill n ot b clas sifi ed et i at w to n e re nco me :
Act ial d evia tion uar s	( 11 ) 113		( 11 ) 113	21 627		21 627
Tax effe ct	2 5 43		2 5 43	( 3 8 26)		( 3 8 26)
	( 8 570 )	0	( 8 570 )	17 801	0	17 801
Item s th at m ay b clas sifi ed sub tly to n et i e re seq uen nco me :
For eign han latio n di ffer ge t exc rans enc es	26 986	22 835	49 821	( 13 ) 765	( 14 ) 943	( 28 ) 708
Rev alua tion s of fina ncia l as sets ilab le fo le res erve ava r sa	24 919		24 919	3 8 63		4 1 17
T ffec t ax e	( 7 3 26)		( 7 3 26)	( 2 110 )		( 2 185 )
Val uati f as sets of a ciat ed c anie on o sso omp s	4 4 22		4 4 22	( 85 3)		( 83 7)
T ffec t ax e	( 1 2 84)		( 1 2 84)	42 7		42 7
	47 717	22 835	70 552	( 12 ) 439	( 14 ) 943	( 27 ) 186
Inco inc lud ed in t he c olid d st of inco not ate ate nts me ons me me	39 147	22 835	61 982	5 3 62	( 14 943 )	( 9 385 )
Con sol idat ed hen sive inc com pre om e	415 31	56 350	765 87	19 129	9 9 73	29 298

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' EQUITYFOR THE PERIODS ENDED SEPTEMBER 30, 2014 AND 2013 PROFORMA

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

	Su bs cri be d	Ot he ity r e qu	Re lua tio va n	Ot he r d res erv es an	Tre as ury	Ne t in co me	Mi rity no	Sh ho lde are rs ' e
	sh ita l are ca p	ins tru nts me	res erv es	ain ed ret	sh are s		int sts ere	ity qu
				rni ea ng s
Ba lan De mb at 31 20 12 ce ce er ,	1 1 90 00 0	8 55 8	( 50 7 6 14 )	78 6 1 75	( 18 27 2)	24 9 1 35	35 2 6 62	2 0 60 64 4
Im of th ha e i he lida tio eri act n t ter p e c ng co nso n p me			9 0	( ) 21 5			( ) 7 8 74	( ) 7 9 99
Ba lan Ja 1, 20 13 Pro for at ce nu ary ma	1 1 90 00 0	8 55 8	( ) 50 7 5 24	78 5 9 60	( 2) 18 27	24 9 1 35	34 4 7 88	2 0 52 64 5
Ap ria tio f n inc for 20 12 et to p rop n o om e res erv es				24 9 1 35		( 24 9 1 35 )
Div ide nd aid fer sh s p on p re en ce are s							( 70 9 )	( 70 9 )
Div ide nd aid ino rity in to ter est s p m s							( 1) 54 02	( 1) 54 02
( A) Va ria ble Re ion Pr RV rat mu ne og ram		( ) 5 2 76			9 95			( ) 4 2 81
Sa le / p ha of ha urc se ow n s res				3 50 7				3 50 7
Sa le / p ha of fer sh urc se p re en ce are s							2 7	2 7
Co reh siv e i fo r th firs ine ths of rof t n 20 13 mp en nco me e m on p orm a			39 32 5	50 82 4		72 83 1	51 94 3	21 4 9 23
Ot he rs				( ) 43			3 9	( 4)
Ba lan Se be r 3 0, 20 13 Pro for at tem ce p ma	1 1 90 00 0	3 28 2	( 46 8 1 99 )	1 0 89 38 3	( 17 27 7)	72 83 1	34 2 0 67	2 2 12 08 7
Div ide nd aid fer sh s p on p re en ce are s							( 37 9 )	( 37 9 )
Va ria ble Re ion Pr ( RV A) rat mu ne og ram		1 32			1 87			3 19
Sa / p of le ha ha urc se ow n s res				( 1) 11				( 1) 11
Sa le / p ha of fer sh urc se p re en ce are s				( 3 )			1 5	1 2
Co reh siv e i fo r th e l th ths of 20 13 rof ast mp en nco me ree m on p orm a			10 5 9 05	( 48 44 ) 5		( 5 8 58 )	23 82 0	42 2 75
Ot he rs				( 7) 11			( 4)	( 1) 12
Ba lan De mb 31 20 13 Pro for at ce ce er ma ,	1 1 90 00 0	3 41 4	( ) 36 2 2 94	1 0 40 70 7	( ) 17 09 0	66 97 3	36 5 5 19	2 2 87 22 9
Ap ria tio f n inc for 20 13 et to p rop n o om e res erv es				66 97 3		( 66 97 3 )
Ex ch tio f s ub ord ina ted de bt d p fer sh for sh an g e o p era n o an re en ce are s are s	10 3 0 63			12 20 6			( 49 36 ) 5	65 90 4
Div ide nd aid fer sh s p on p re en ce are s							( ) 1 0 95	( ) 1 0 95
Div ide nd aid to ino rity in ter est s p m s							( ) 44 18 6	( ) 44 18 6
Va ria ble Re ion Pr ( RV A) rat mu ne og ram		6 37			3 103			3 74 0
Sa le / p ha of ha urc se ow n s res				( 2 9 76 )				( 2 9 76 )
Sa le / p ha of fer sh urc se p re en ce are s							3 63	3 63
Co fo firs of reh siv e i r th t n ine ths 20 14 mp en nco me e m on			29 2 1 55	27 84 3		( 7) 114 34	10 8 1 22	31 3 7 73
Ot he rs				( 26 )				( 26 )
Ba lan Se be r 3 0, 20 14 at tem ce p	1 2 93 06 3	4 05 1	( 70 13 9 )	1 1 44 72 7	( 13 98 7)	( 11 4 3 47 )	37 9 3 58	2 6 22 72 6

(Amounts expressed in thousands of Euro)

The accompanying notes form an integral part of these statements.

The Accountant The Executive Committee of the Board of Directors

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE PERIODS ENDED SEPTEMBER 30, 2014 AND 2013 PROFORMA

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

	(Amounts expressed in thousands of Euro)
	30 Sep. 14	30 Sep. 13 Proforma
Operating activities
Interest, commissions and similar income received	2 596 664	1 930 663
Interest, commissions and similar expenses paid	( 1 916 440)	( 1 232 487)
Recovery of loans and interest in arrears	12 424	14 170
Payments to personnel and suppliers	( 440 056)	( 418 683)
Net cash flow from income and expenses	252 592	293 663
Decrease (increase) in:
Financial assets held for trading, available for sale and held to maturity	1 636 556	1 091 451
Loans and advances to credit institutions	( 435 508)	33 729
Loans and advances to customers	185 189	687 863
Investment Properties	9 421	2 285
Other assets	( 127 556)	( 65 765)
Net cash flow from operating assets	1 268 102	1 749 563
Increase (decrease) in:
Resources of central banks and other credit institutions	( 2 376 906)	( 1 139 020)
Resources of customers	2 607 763	1 251 065
Financial liabilities held for trading	86 975	( 80 521)
Other liabilities	( 245 385)	( 236 482)
Net cash flow from operating liabilities	72 447	( 204 958)
Contributions to the Pension Funds	( 5 658)	( 4 520)
Income tax paid	( 31 926)	( 70 258)
	1 555 557	1 763 490
Investing activities
Purchase of other tangible assets and intangible assets	( 20 830)	( 18 672)
Sale of other tangible assets	66	70
Dividends received and other income	22 685	8 952
	1 921	( 9 650)
Financing activities
Liability for assets not derecognised	( 255 489)	( 155 701)
Redemption of contingent convertible subordinated bonds	( 920 000)	( 280 000)
Issuance of debt securities and subordinated debt	321 123	126 334
Redemption of debt securities	( 963 642)	( 1 512 896)
Purchase and sale of own debt securities and subordinated debt	272 655	335 212
Purchase and sale of preference shares	( 49 002)
Interest on contingent convertible subordinated bonds	( 27 108)	( 45 380)
Interest on debt securities and subordinated debt	( 70 112)	( 78 787)
Exchange operation of subordinated debt and preference shares for shares	103 063
Dividends paid on preference shares	( 1 095)	( 709)
Dividends paid to minority interests	( 44 186)	( 51 678)
Purchase and sale of treasury shares	763	( 4 281)
	( 1 633 030)	( 1 667 886)
Net increase (decrease) in cash and equivalents	( 75 552)	85 954
Cash and equivalents at the beginning of the period	1 839 043	1 722 721
Cash and equivalents at the end of the period	1 763 491	1 808 675

The accompanying notes form an integral part of these statements.

The Accountant The Executive Committee of the Board of Directors Alberto Pitôrra Chairman Fernando Ulrich Deputy-Chairman António Domingues Members José Pena do Amaral Maria Celeste Hagatong Manuel Ferreira da Silva Pedro Barreto

João Pedro Oliveira e Costa

Banco BPI, S.A.

Notes to the consolidated financial statements as of September 30, 2014 and 2013

(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, 2014 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.

In 2013, the BPI Alternative Fund: Iberian Equities Long/Short Fund (Luxemburgo) was established. On September 30, 2014 the BPI Group held 57.17% of the fund's participating units through Banco BPI and BPI Vida, the financial statements of the fund being fully consolidated in the financial statements of the BPI Group. In October 2013 the BPI Alternative Fund: Iberian Equities Long/Short Fund (Portugal) was liquidated, its operations now being carried out by BPI Alternative Fund: Iberian Equities Long/Short Fund (Lux).

In 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.

As a result of the change in IFRS 10 - Consolidated Financial Statements, in the first half of 2014, the BPI Group started consolidating the funds BPI Obrigações Mundiais – Fundo de Investimento Aberto de Obrigações1 and Imofomento - Fundo de Investimento Imobiliário Aberto1, in which it holds 57.7% and 41.38% of the participating units, respectively, in accordance with the full consolidation method. Although the BPI Group holds less than 50% of the participating units of Fundo Imofomento, it is consolidated by the full consolidation method, given that the BPI Group has control over the related fund management company and holds more than 20% of the participating units.

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.

¹ Funds managed by BPI Gestão de Activos – Sociedade Gestora de Fundos de Investimento Mobiliário, S.A

	Head Office	Sharehol ders' equity	Total assets	Net income (loss) for the period	Direct partici pation	Consolidation / Recognition method
Banks
Banco BPI, S.A.	Portugal	1 538 662	37 580 123	( 162 836)
Banco Português de Investimento, S.A.	Portugal	56 823	1 848 464	2 599	100.00%	100.00% Full Consolidation
Banco Comercial e de Investimentos, S.A.R.L.	Mozambique	171 463	2 302 251	21 908	29.70%	30.00% Equity Method
Banco de Fomento Angola, S.A.	Angola	756 229	7 787 552	173 539	50.08%	50.10% Full Consolidation
Banco BPI Cayman, Ltd.	Cayman Islands	159 939	278 409	1 818		100.00% Full Consolidation
Asset management companies
BPI Gestão de Activos - Sociedade Gestora de Fundos de Investimento Mobiliários, S.A	Portugal	16 161	28 110	5 807	100.00%	100.00% Full Consolidation
BPI – Global Investment Fund Management Company, S.A.	Luxembourg	2 432	6 333	1 166	100.00%	100.00% Full Consolidation
BPI (Suisse), S.A.	Switzerland	11 854	13 193	2 637		100.00% Full Consolidation
BPI Alternative Fund: Iberian Equities Long/Short Fund (Lux) 1	Luxembourg	171 781	178 872	8 240	43.71%	57.17% Full Consolidation
BPI Obrigações Mundiais - Fundo de Investimento Aberto de Obrigações 1	Portugal	21 419	22 381	576		57.70% Full Consolidation
Imofomento - Fundo de Investimento Imobiliário Aberto 1	Portugal	155 825	160 317	1 352	34.94%	41.38% Full Consolidation
Venture capital companies BPI Private Equity - Sociedade de Capital de Risco, S.A. Inter-Risco – Sociedade de Capital de Risco, S.A.	Portugal Portugal	35 681 1 364	37 573 2 070	557 404	100.00%	100.00% Full Consolidation 49.00% Equity Method
Insurance companies
BPI Vida e Pensões – Companhia de Seguros, S.A.	Portugal	140 125	4 732 481	17 982	100.00%	100.00% Full Consolidation
Cosec – Companhia de Seguros de Crédito, S.A.	Portugal	56 179	109 059	7 355	50.00%	50.00% Equity Method
Companhia de Seguros Allianz Portugal, S.A.	Portugal	299 978	1 272 542	20 104	35.00%	35.00% Equity Method
Other BPI Capital Finance Ltd. 2 BPI Capital Africa (Proprietary) Limited BPI, Inc.	Cayman Islands South Africa U.S.A.	53 651 ( 3 491) 673	53 658 1 550 673	1 145 ( 1 136) ( 220)	100.00% 100.00%	100.00% Full Consolidation 100.00% Full Consolidation 100.00% Full Consolidation
BPI Locação de Equipamentos, Lda	Portugal	1 105	1 152	( 6)	100.00%	100.00% Full Consolidation
BPI Madeira, SGPS, Unipessoal, S.A.	Portugal	152 841	157 892	( 10)	100.00%	100.00% Full Consolidation
BPI Moçambique – Sociedade de Investimento, S.A. Finangeste – Empresa Financeira de Gestão	Mozambique	740	1 215	( 379)	96.54%	100.00% Full Consolidation
e Desenvolvimento, S.A.	Portugal	62 071	64 234	( 464)	32.78%	32.78% Equity Method
Unicre - Instituição Financeira de Crédito, S.A.	Portugal	99 737	317 218	12 564	20.65%	21.01% Equity Method

At September 30, 2014 the BPI Group was made up of the following companies:

Note: Unless otherwise indicated, all amounts are as of September 30, 2014 (accounting balances before consolidation adjustments).

1 Funds managed by BPI Gestão de Activos – Sociedade Gestora de Fundos de Investimento Mobiliário, S.A.

2 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. Considering the preference shares held by the BPI Group (51 641 000 preference shares) and the total share capital of the company, the effective participation of the BPI Group in this company corresponds to 96.7%.

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, 2014.

3. SEGMENT REPORTING

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

Domestic operations: corresponds to commercial banking business in Portugal, including the provision overseas of banking services to emigrant Portuguese communities and subsidiaries of Portuguese companies. Domestic operations are divided into:
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 includes commercial operations with private clients, sole traders and businesses with turnover of up to 5 million euro through a multi-channel distribution network made up of traditional branches, investment centres, home banking services and telephone banking.
Corporate Banking, Project Finance and Institutional Banking includes commercial operations with companies with a turnover of more than 2 million euro and operates in coordination with the Retail Banking segment for operations up to 5 million euro. Also includes project finance services and relationships with entities of the Public Sector, Public and Municipal Companies, the State Business Sector, Foundations and Associations. This segment operates through a network of business centres, institutional centres and homebanking services adapted to the business needs.

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 in addition to 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, 2014 and investments made in tangible and intangible assets during the first 9 months of 2014, by segment, are as follows:

	Do sti atio me c o per ns			Inte tio l op tion rna na era s
	Co ial mm erc ban kin g	Inve stm ent ban king	Equ ity inve stm ent s and oth ers	Inte ent r se gm rati ope ons	To tal	An la go	Ot her s	To tal	Inte ent r se gm rati ope ons	BP I G rou p
AS SE TS
Ca t C sh and de its a ent ral Ba nks pos	2 19 880	2 14			22 0 0 94	1 145 41 2	1	1 145 41 3		1 3 65 507
Loa and ad oth red it in stit utio ble de nd to ns van ces er c ns rep aya on ma ld f Fin ial ets he or t rad ing d anc ass an	54 2 3 99	11 6 6 43	14 40 0	( 5) 289 98	38 3 4 57	23 70 4	3	23 70 7	( 80) 9 1	39 7 9 84
fai lue thr h p rofi los at t or r va oug s	1 8 68 927	23 0 0 41		( 67 865 )	2 0 31 103	18 2 4 98	2 5	18 2 5 23	( 3)	2 2 13 623
Fin ial aila ble for le ets anc ass av sa	4 7 15 522	707 7	52 88 8	1 323	4 7 440 77	2 6 90 295		2 6 90 295		7 4 67 735
Loa and ad dit inst itut ion to ns van ces cre s	2 2 45 542	1 7 00 114	2 895	( 2 4 72 811 )	1 4 75 740	1 5 23 056	1 344	1 5 24 400	( 674 92 3)	2 3 25 217
Loa and ad to tom ns van ces cus ers	23 61 3 5 65	22 3 0 01		( 6 4 69)	23 83 0 0 97	1 8 68 731		1 8 68 731		25 69 8 8 28
He ld t atu rity inv est nts o m me	13 4 6 77	10 24 5		( ) 41 225	10 3 6 97					10 3 6 97
Hed ing de riva tive g s	15 5 5 54	2 66		( 6 3 82)	14 9 4 38					14 9 4 38
Inv est nt p erti me rop es	15 5 5 28				15 5 5 28					15 5 5 28
Oth er t ible set ang as s	59 77 8	1 645			6 1 4 23	13 9 9 91	4 18	14 0 4 09		20 1 8 32
Inta ible set ng as s	17 46 8	4 5			17 51 3	2 290	3	2 293		19 80 6
Inv nt i cia ted ani and jo intly lled titie est ntro me n a sso co mp es co en s	104 99 3		83 42 6		18 8 4 19		5 1 4 39	5 1 4 39		23 9 8 58
Tax set as s	45 2 6 86	4 808	( 2 6 03)		45 4 8 91	3 425	78 7	4 203		45 9 0 94
Oth ets er ass	90 8 9 88	28 40 5	1 12	( 90 234 )	84 7 2 71	23 35 9	2 74	23 63 3	( 48 021 )	82 2 8 83
TO TA L A SS ETS	35 19 5 5 07	2 3 23 134	15 1 1 18	( 2 9 73 648 )	34 69 6 1 11	7 6 02 761	54 28 5	7 6 57 046	( 732 12 7)	41 62 1 0 30
LIA BIL ITIE S
Res of tral ba nks our ces cen	1 5 32 377				1 5 32 377					1 5 32 377
Fin ial liab ilitie s h eld for din tra anc g	34 2 1 69	17 65 2		( 22 500 )	33 7 3 21	4 902		4 902	( 3)	34 2 2 20
Res of oth red it in stit utio our ces er c ns	4 0 56 684	6 710	4 1 7 21	( ) 1 8 38 127	2 2 66 988	67 58 0	3 72	67 95 2	( 3) 684 10	1 6 50 837
of Res tom d o the r de bts our ces cus ers an	19 76 6 4 06	1 8 06 627		( 4) 940 79	20 63 2 2 39	6 6 38 513		6 6 38 513		27 27 0 7 52
Deb ities t se cur	2 3 33 216			( 74 488 )	2 2 58 728					2 2 58 728
Fin ial liab ilitie lati sfe rred to t set anc s re ng ran as s	1 132 30 8				1 132 30 8					1 132 30 8
Hed ing de riva tive g s	32 1 8 96			( 4 8 61)	3 17 035					31 7 0 35
Pro vis ion s	44 6 77	1 95			64 1 77	27 83 8		27 83 8		10 5 4 79
Tec hni cal vis ion pro s	3 4 08 588	25 9 3 05			3 6 67 893					3 6 67 893
Tax lia bilit ies	30 67 5	2 087	( 1 6 01)		3 1 1 61	23 25 4	3 655	26 90 9		58 07 0
Oth ubo rdin ate d d ebt d p arti cip atin bon ds er s an g	13 1 1 39	4 247		( ) 65 858	69 52 8					69 52 8
Oth liab ilitie er s	52 5 9 30	46 27 8	1 892	( ) 27 020	54 7 0 80	88 79 3	5 225	94 01 8	( ) 48 021	59 3 0 77
IES TO TA L L IAB ILIT	33 658 83 4	2 1 43 101	42 01 2	( 2 9 73 648 )	32 87 0 2 99	6 8 50 880	9 252	6 8 60 132	( 732 12 7)	38 99 8 3 04
SH AR EH OL DE RS ' E QU ITY
Sh hol der s' e ity a ttrib ble the sh hol der f B PI uta to are qu are s o	1 5 34 673	18 0 0 33	10 9 1 06		1 8 23 812	37 4 5 23	45 03 3	4 19 556		2 2 43 368
Min orit inte t y res	2 000				2 000	37 7 3 58		37 7 3 58		37 9 3 58
TO TA L S HA RE HO LD ER S' E QU ITY	1 5 36 673	18 0 0 33	10 9 1 06		1 8 25 812	75 1 8 81	45 03 3	79 6 9 14		2 6 22 726
TO TA L L IAB ILIT IES AN D S HA RE HO LD ER S' EQ UIT Y	35 5 5 19 07	2 3 23 134	15 1 1 18	( ) 2 9 73 648	34 69 6 1 11	7 6 02 761	54 5 28	57 7 6 046	( 7) 732 12	41 62 1 0 30

Inv ade in est nts me m :
Pro ty per						1 1 39		1 139		1 139
Equ ipm d o the ible ent r ta set an ng as s	4 2 94	1 69			4 463	10 94 6	1	10 94 7		15 41 0
Inta ible set ng as s	3 1 80				3 180	1 099	4	1 103		4 283

			Do stic tio me op era ns			Inte rna	tion al o per	atio ns
	Com rcia l me ban kin g	Inv est nt me ban kin g	Equ ity inv est nts me and oth ers	Inte ent r se gm rati ope ons	Tot al	Ang ola	Oth ers	Tot al	Inte ent r se gm rati ope ons	BP I G rou p
Fin ial in ( ) anc ma rg nar row se nse	18 3 6 69	3 101	( 2 0 84)		18 4 6 86	17 0 5 60	( 199 )	17 0 3 61		35 5 0 47
Gro in o nit link ss ma rg n u s	9 90	2 340			3 330					3 330
Inc e fr uity ins trum ent om om eq s	1 215	1 04	2 186		3 505					3 505
Net issi rela ting orti sed to st co mm on am co	15 19 5				15 19 5	1 36		1 36		15 33 1
Fin ial in anc ma rg	20 1 0 69	5 545	1 02		20 6 7 16	17 0 6 96	( 199 )	17 0 4 97		37 7 2 13
of i Tec hni cal ult trac ts res nsu ran ce con	23 582	2 83			23 86 5					23 86 5
Com mis sio eiv ed ns rec	18 3 7 50	42 80 4		( 30 678 )	19 5 8 76	38 34 6	4 10	38 75 6	( 1 9 27)	23 2 7 05
Com mis sio id ns pa	( ) 41 080	( ) 14 656	( 14)	30 67 8	( ) 25 072	( 09) 5 7	( 1)	( 10) 5 7	1 927	( ) 28 855
Oth er i t nco me , ne	12 16 8	5 3			12 22 1	14 64 9		14 64 9		26 87 0
Net iss ion inc co mm om e	15 4 8 38	28 20 1	( 14)		18 3 0 25	47 28 6	4 09	47 69 5		23 0 7 20
Ga in a nd los atio at f air val s o n o per ns ue	23 80 3	10 85 3			34 65 6	86 12 1		86 12 1		12 0 7 77
Ga in a nd los vai lab le f ale ts a s o n a sse or s	( 135 67 2)	2 18			( 135 45 4)					( 135 45 4)
Inte d fi cial in a nd loss wit h p ion t an res nan ga ens s	1 429	( 15)	( 1)		1 413					1 413
Net inc n fi cia l op tio om e o nan era ns	( 110 44 0)	11 05 6	( 1)		( 99 385 )	86 12 1		86 12 1		( 13 264 )
Op ting inc era om e	25 84 6	4			25 85 0	6 67	8 0	7 47		26 59 7
Op ting era ex pen ses	( 32 195 )	( 360 )			( 32 555 )	( 849 )	( 1)	( 850 )		( 33 405 )
Oth er t axe s	( 3 0 10)	( 581 )			( 3 5 91)	( 8 1 03)	( 55)	( 8 1 58)		( 11 749 )
Net ting inc op era om e	( 9 3 59)	( 937 )			( 10 296 )	( 8 2 85)	2 4	( 8 2 61)		( 18 557 )
Op tin inc e f ba nki act ivit era g om rom ng y	25 9 6 90	44 14 8	8 7		30 3 9 25	29 5 8 18	2 34	29 6 0 52		59 9 9 77
Per nel ts son cos	( 235 25 6)	( 16 577 )	( 129 )		( 251 96 2)	( 48 075 )	( 1 3 81)	( 49 456 )		( 301 41 8)
Ge al a dm inis ive trat ts ner cos	( 129 92 1)	( 9 0 74)	( 21)		( 139 01 6)	( 44 295 )	( 432 )	( 44 727 )		( 183 74 3)
Dep iati and orti sat ion rec on am	( 11 4 23)	( 913 )			( 12 336 )	( 10 3 96)	( 80)	( 10 4 76)		( 22 812 )
Ov erh ead sts co	( 0) 376 60	( ) 26 564	( ) 150		( 4) 403 31	( 6) 102 76	( 93) 1 8	( 9) 104 65		( 3) 507 97
Res ulta do ion al ope rac
Rec f lo , int nd st a ove ry o ans ere exp ens es	10 64 4	1			10 64 5	1 779		1 779		12 42 4
Imp airm los d p isio for loa and ent nte t ses an rov ns ns gu ara es, ne	( 128 05 3)	( 20)			( 128 07 3)	( 13 2 02)		( 13 2 02)		( 141 27 5)
Imp airm los d o the ovi sion ent et ses an r pr s, n	( 08) 8 8	4 5	( 47) 4 5		( ) 13 310	( 26) 2 2		( 26) 2 2		( 36) 15 5
Net inc e b efo re i tax om nco me	( 7) 243 12	17 61 0	( 10) 4 6		( 7) 230 12	17 9 4 03	( 59) 1 6	17 7 7 44		( ) 52 383
Inc e ta om x	24 776	( 6 1 42)	1 503		20 13 7	( 18 5 46)	1 20	( 18 4 26)		1 711
(eq d) Ear nin of a ciat ed ies uity tho gs sso com pan me	7 036		6 317		13 35 3		6 166	6 166		19 51 9
Glo bal lida ted t in co nso ne co me	( 5) 211 31	11 46 8	3 210		( 7) 196 63	16 0 8 57	4 627	16 5 4 84		( ) 31 153
Inc ttrib ble min orit inte uta to t om e a y res	( 864 )				( 864 )	( 82 330 )		( 82 330 )		( 83 194 )
Co lida ted t in f th e B PI G nso ne com e o rou p	( 212 17 9)	11 46 8	3 210		( 197 50 1)	78 52 7	4 627	83 15 4		( 114 34 7)
Cas h fl aft er t ow axe s	( ) 63 895	12 35 6	7 757		( ) 43 782	10 4 3 51	4 707	10 9 0 58		65 27 6

The BPI Group's income statement for the period ended September 30, 2014, by segment, is as follows:

The BPI Group's balance sheet as of December 31, 2013 proforma and investments in tangible and intangible assets during the year, by segment, are as follows:

	Do sti atio me c o per ns			Inte tio l op tion rna na era s
	Co ial mm erc ban kin g	Inve stm ent ban king	Equ ity inve stm ent s and oth ers	Inte ent r se gm rati ope ons	To tal	An la go	Ot her s	To tal	Inte ent r se gm rati ope ons	BP I G rou p
AS SE TS
Ca sh and de its a t C ral Ba nks ent pos	3 14 551	2 09			3 14 760	1 0 451 57		1 0 451 57		1 3 72 211
Loa and ad oth red it in stit utio ble de nd to ns van ces er c ns rep aya on ma	51 0 9 82	71 18 6	4 2 04	( 128 58 2)	45 7 7 90	18 28 9	33	18 32 2	( 9 2 49)	46 6 8 63
Fin ial he ld f rad ing d ets or t anc ass an
fai rofi at lue thr h p t or los r va oug s	1 0 76 874	15 3 3 98		( ) 63 910	1 166 36 2	14 0 2 97	5 8	14 0 3 55		1 3 06 717
Fin ial aila ble for le ets anc ass av sa	7 2 67 098	17 51 1	52 42 6	1 291	7 3 38 326	2 2 85 917		2 2 85 917		9 6 24 243
Loa and ad dit inst itut ion to ns van ces cre s	1 7 73 643	1 1 11 651	2 894	( ) 1 6 04 020	1 2 84 168	1 6 89 984	5 75	1 6 90 559	( ) 1 0 88 657	1 8 86 070
Loa and ad to tom ns van ces cus ers	24 71 7 1 96	19 5 8 65		( ) 19 565	24 89 3 4 96	1 0 71 637		1 0 71 637		25 96 5 1 33
He ld t rity inv atu est nts o m me	16 6 5 30	1 1 6 67		( ) 41 320	13 6 8 77					13 6 8 77
Hed ing de riva tive g s	19 6 4 10	2 22		( 89) 2 5	19 4 0 43					19 4 0 43
Inv erti est nt p me rop es	16 4 9 49				16 4 9 49					16 4 9 49
Oth ible er t set ang as s	67 70 6	1 616	1		69 32 3	12 7 4 56	5 58	12 8 0 14		19 7 3 37
Inta ible set ng as s	16 0 77	1 01			16 87 1	2 278		2 278		19 14 9
Inv nt i cia ted ani and jo intly lled titie est ntro me n a sso co mp es co en s	95 875		8 1 1 50		17 7 0 25		44 96 7	44 96 7		22 1 9 92
Tax set as s	53 2 2 75	5 030	( 816 )		53 6 4 89	3 133	7 0	3 203		53 9 6 92
Oth ets er ass	76 7 6 36	32 03 9	1 35	( 98 554 )	70 1 2 56	12 68 6	2 25	12 91 1	( 3 1 21)	71 1 0 46
TO TA L A SS ETS	37 66 8 4 95	1 6 00 495	13 9 9 94	( 1 9 57 249 )	37 45 1 7 35	6 4 09 128	46 48 6	6 4 55 614	( 1 1 01 027 )	42 80 6 3 22
S LIA BIL ITIE
of Res tral ba nks our ces cen	4 140 06 8				4 140 06 8					4 140 06 8
Fin ial liab ilitie s h eld for din tra anc g Res of oth red it in stit utio	25 6 0 22 3 7 07 139	17 14 0 4 551	27 41 6	( 19 150 ) 1 2 03 664	25 4 0 12 2 5 35 442	1 233 14 99 2	7 21	1 233 15 71 3	1 0 97 906	25 5 2 45 1 4 53 249
our ces er c ns Res of d o the r de bts tom	19 24 2 2 33	1 2 30 691		( ) 553 89	19 91 9 0 27	5 6 98 461		5 6 98 461	( )	25 61 7 4
our ces cus ers an Deb ities t se cur	2 6 88 097			( 7) ( 89 642 )	2 5 98 455					88 2 5 98 455
Fin ial liab ilitie lati sfe rred to t set anc s re ran as s	1 3 87 296				1 3 87 296					1 3 87 296
ng Hed ing de riva tive s	54 9 9 91	( 1)		( 1 5 32)	54 8 4 58					54 8 4 58
g Pro vis ion s	10 2 1 34	1 86			10 2 3 20	2 1 7 18		2 1 7 18		12 4 0 38
Tec hni cal vis ion pro s	2 5 13 660	17 6 1 08			2 6 89 768					2 6 89 768
Tax lia bilit ies	39 52 9	1 520	( 75) 1 7		39 27 4	15 15 3	3 284	18 43 7		57 71 1
Co ntin rtib le s ubo rdin d b ond t co ate gen nve s	92 0 4 33				92 0 4 33					92 0 4 33
Oth ubo rdin d d ebt d p arti cip atin bon ds ate er s an g	19 8 8 57	3 934		( ) 65 860	13 6 9 31					13 6 9 31
Oth liab ilitie er s	54 0 3 45	38 49 6	2 145	( ) 23 504	55 7 4 82	32 19 4	3 398	35 59 2	( 21) 3 1	58 9 9 53
IES TO TA L L IAB ILIT	36 285 80 4	1 4 72 625	27 78 6	( 1 9 57 249 )	35 82 8 9 66	5 7 83 751	7 403	5 7 91 154	( 1 1 01 027 )	40 51 9 0 93
SH AR EH OL DE RS ' E QU ITY
Sh hol der s' e ity a ttrib ble the sh hol der f B PI uta to are qu are s o	1 3 31 458	12 7 8 70	1 12 208		1 5 71 536	3 11 091	39 08 3	35 0 1 74		1 9 21 710
Min orit inte t y res	1 2 33 5				1 2 33 5	3 14 286		3 14 286		36 19 5 5
TO TA L S HA RE HO LD ER S' E QU ITY	1 3 82 691	12 7 8 70	1 12 208		1 6 22 769	62 5 3 77	39 08 3	66 4 4 60		2 2 87 229
TO TA L L IAB ILIT IES AN D S HA RE HO LD ER S' EQ UIT Y	95 37 66 8 4	495 1 6 00	13 9 9 94	( 57 ) 1 9 249	45 35 37 1 7	6 4 09 128	46 48 6	55 6 4 614	( ) 1 1 01 027	42 80 6 3 22

Inv ade in est nts me m :
Pro ty per	207				2 07	1 052		1 052		1 259
Equ ipm d o the ible ent r ta set an ng as s	6 5 39	1 66			6 705	17 47 3	2 17	17 69 0		24 39 5
Inta ible set ng as s	7 8 97	7 8			7 975	1 742		1 742		9 717

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

	Do sti atio me c o per ns					Inte tion al o ati rna per on s
	Co ial mm erc ban kin g	Inv est nt me ban kin g	Equ ity inv est nts me and oth ers	Inte ent r se gm ion rat ope s	To tal	An la go	Oth ers	To tal	Inte ent r se gm rati ope ons	BP I G rou p
Fin cia l m in ( e) an arg na rro w s ens	19 1 3 96	1 277	( 1 0 76)		19 1 5 97	14 0 2 88	( 190 )	14 0 0 98		33 1 6 95
Gro in o nit link ss ma rg n u s	6 29	1 539			2 168					2 168
Inc e fr uity ins trum ent om om eq s	9 99	8 5	1 845		2 929					2 929
Net iss ion rel atin to a rtis ed t co mm g mo cos	17 97 1				17 97 1	3 46		3 46		18 31 7
Fin cia l m in an arg	21 0 9 95	2 901	7 69		21 4 6 65	14 0 6 34	( ) 190	14 0 4 44		35 5 1 09
Tec hni cal ult of i trac ts res nsu ran ce con	17 060	2 09			17 26 9					17 26 9
Co iss ion cei ved mm s re	19 3 3 37	33 12 3		( 20 769 )	20 5 6 91	27 14 9	1 49	27 29 8	( 938 )	23 2 0 51
Co iss ion aid mm s p	( 39 518 )	( 40) 7 7	( 7)	20 76 9	( 26 496 )	( 5 3 98)		( 5 3 98)	9 38	( 30 956 )
Oth inco t er me , ne	13 78 0	5 8			13 83 8	18 85 8		18 85 8		32 69 6
Net iss ion in co mm com e	7 5 16 99	25 44 1	( 7)		19 3 0 33	40 60 9	1 49	75 40 8		23 3 7 91
Ga in a nd los atio at f air val s o n o per ns ue	18 55 0	4 836			23 38 6	67 02 8		67 02 8		90 41 4
Ga in a nd los vai lab le f ale ts a s o n a sse or s	134 62 4	3 8			13 4 6 62					13 4 6 62
d fi Inte t an cia l ga in a nd loss wi th p ion res nan ens s	3 086	5 3			3 139					3 139
Net in n f ina nci al o atio com e o per ns	15 6 2 60	4 927			16 1 1 87	67 02 8		67 02 8		22 8 2 15
Op ting inc era om e	15 85 5	5 7			15 91 2	6 28	2 1	6 49		16 56 1
Op ting era ex pen ses	( ) 25 000	( 95) 1 1			( ) 26 195	( ) 607	( 1)	( ) 608		( ) 26 803
Oth er t axe s	( 2 7 05)	( 601 )			( 3 3 06)	( 990 )	( 23)	( 1 0 13)		( 4 3 19)
Net tin inc op era g om e	( ) 11 850	( 39) 1 7			( ) 13 589	( ) 969	( 3)	( ) 972		( ) 14 561
Op tin inc e f ba nk ing tivi ty era g om rom ac	54 0 0 64	31 73 9	62 7		57 2 5 65	24 7 3 02	( 44)	24 7 2 58		81 9 8 23
Pe l co sts rso nne	( 210 79 8)	( 15 114 )	( 127 )		( 226 03 9)	( 48 673 )	( 1 4 49)	( 50 122 )		( 276 16 1)
Ge al a dm inis trat ive sts ner co	( 1) 129 35	( 24) 8 9	( 22)		( 7) 138 29	( ) 42 164	( ) 443	( ) 42 607		( 4) 180 90
Dep iati and orti ion sat rec on am	( 12 866 )	( 946 )			( 13 812 )	( 9 7 94)	( 95)	( 9 8 89)		( 23 701 )
Ov erh ead sts co	( 353 01 5)	( 24 984 )	( 149 )		( 378 14 8)	( 100 63 1)	( 1 9 87)	( 102 61 8)		( 480 76 6)
Rec f lo inte d e t an ove ry o ans res xpe nse s ,	12 34 7	3			12 35 0	1 820		1 820		14 17 0
Imp airm los d p isio for loa and ent nte t ses an rov ns ns gu ara es, ne	( 0) 175 92	3 73			( 7) 175 54	( 26) 6 9		( 26) 6 9		( 3) 182 47
Imp airm los d o the ovi sio ent t ses an r pr ns, ne	( ) 17 299	( 26)	1 62		( ) 17 163	( 77) 2 2		( 77) 2 2		( ) 19 440
in efo inc Net e b e t com re om ax	6 177	7 105	7 75		14 05 7	13 9 2 88	( 31) 2 0	13 7 2 57		15 1 3 14
Inc e ta om x	( ) 11 042	( 99) 3 1	( ) 134		( ) 14 375	( ) 17 651	( ) 529	( ) 18 180		( ) 32 555
Ea rnin of a ciat ed ies (eq uity tho d) gs sso com pan me	7 633		3 741		11 37 4		6 216	6 216		17 59 0
Glo bal lida ted t in co nso ne co me	2 768	3 906	4 382		05 11 6	12 1 6 37	656 3	5 2 12 93		13 6 3 49
Inc ttrib uta ble to min orit inte t om e a res y	( ) 775	( 3)			( ) 778	( ) 62 740		( ) 62 740		( ) 63 518
Co lida ted t in f th e B PI G nso ne com e o rou p	1 993	3 903	4 382		10 27 8	58 89 7	3 656	62 55 3		72 83 1
Ca flow aft sh er t axe s	20 8 0 78	4 502	4 220		2 16 800	77 89 4	3 751	8 1 6 45		29 8 4 45

4. NOTES

4.1. Cash and deposits at Central Banks

This caption is made up as follows:
	30 Sep. 14	31 Dec. 13 Proforma
Cash	357 537	369 451
Demand deposits at the Bank of Portugal	27 930	109 939
Demand deposits at foreign Central Banks	980 040	892 793
Accrued interest		28
	1 365 507	1 372 211

Demand deposits 300 757 392 448 Cheque for collection 7 690 4 111 Accrued interest 3

4.2. Deposits at other Credit Institutions

This caption is made up as follows:
	30 Sep. 14	31 Dec. 13 Proforma
Domestic Credit Institutions
Demand deposits	3 951	3 480
Cheque for collection	84 602	65 779
Other	984	1 042
Foreign Credit Institutions

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.

397 984 466 863

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

This caption is made up as follows:

	30 Sep. 14	31 Dec. 13 Proforma
Financial assets held for trading
Debt Instruments
Bonds issued by Portuguese government entities	55 400	4 747
Bonds issued by foreign government entities	185 182	142 913
Bonds issued by other Portuguese entities
Non-subordinated debt	15 259	14 711
Bonds issued by foreign financial entities		49
Bonds issued by other foreign entities
Non-subordinated debt	23 478	9 940
	279 319	172 360
Equity instruments
Shares issued by Portuguese entities	160 424	148 902
Shares issued by foreign entities	82 286	59 113
	242 710	208 015
Other securities
Participating units issued by Portuguese entities	160	157
Participating units issued by foreign entities	98	92
	258	249
	522 287	380 624
Financial assets at fair value through profit or loss
Debt Instruments
Bonds issued by Portuguese government entities	36 039	99 301
Bonds issued by foreign government entities	877 575	239 513
Bonds issued by other Portuguese entities
Non-subordinated debt	94 496	71 240
Subordinated debt	101
Bonds issued by other foreign entities
Non-subordinated debt	78 392	43 350
Subordinated debt	1 698	1 589
	1 088 301	454 993
Equity instruments
Shares issued by Portuguese entities	170	1 349
Shares issued by foreign entities	19 069	24 668
	19 239	26 017
Other securities
Participating units issued by Portuguese entities	13 564	11 347
Participating units issued by foreign entities	279 496	210 239
	293 060	221 586
	1 400 600	702 596
Derivative instruments with positive fair value (Note 4.4)	290 736 2 213 623	223 497 1 306 717

This caption includes the following assets hedging capitalisation insurance products issued by BPI Vida:
	30 Sep. 14	31 Dec. 13 Proforma
Debt Instruments
Of public entities	913 613	338 814
Other entities	174 437	116 179
Equity Instruments	1 029	9 628
Other securities	293 060	221 586
Derivative instruments with positive fair value	904
	1 383 043	686 207

4.4. Derivatives

The caption "Derivative instruments held for trading" (Notes 4.3 and 4.16) is made up as follows:

	30 Sep. 14		31 Dec. 13 Proforma
	Notional value1	Book value		Notional	Book value
		Assets	Liabilities	value1	Assets	Liabilities
Exchange rate contracts
Futures	502	25
Exchange forwards and swaps	1 608 846	4 099	10 799	1 623 706	1 250	1 244
Interest rate contracts
Futures	11 561	2		66 597	11	10
Options	462 002	2 714	1 882	473 833	3 051	3 284
Swaps	5 796 337	243 342	251 857	6 356 628	191 182	195 972
Contracts over shares
Futures	6 067	13	5	12 509	162	222
Swaps	290 228	2 412	36 815	264 030	55	27 008
Options	523 125	27 691	1	31 225	614	19
Contracts over other underlying items
Futures	39 653			51 737
Options	27 618		1
Other
Options2	896 993	9 444	36 961	643 635	26 932	27 360
Other3	1 420 657		507	1 951 222		126
Overdue derivatives		994			240
	11 083 589	290 736	338 828	11 475 122	223 497	255 245

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

		30 Sep. 14			31 Dec. 13 Proforma
		Book value		Notional	Book value
	Notional value1	Assets	Liabilities	value1	Assets	Liabilities
Interest rate contracts
Futures	144 038	26	171	172 541	51	29
Swaps	12 992 482	148 392	305 014	15 187 052	169 642	518 152
Contracts over shares
Swaps	360 748	369	11 660	204 758	146	6 124
Contracts over credit events
Swaps				9 240	33
Contracts over other underlying items
Swaps	12 758	651	190	12 758	334	316
Other
Options2				570 583	23 837	23 837
	13 510 026	149 438	317 035	16 156 932	194 043	548 458

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

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. 14	31 Dec. 13 Proforma
Debt instruments
Bonds issued by Portuguese government entities	3 265 186	5 163 311
Bonds issued by foreign government entities	3 252 678	3 341 475
Bonds issued by other Portuguese entities
Non-subordinated debt	498	477
Bonds issued by other foreign entities
Non-subordinated debt	149 763	149 002
Subordinated debt	484 839	644 639
	7 152 964	9 298 904
Equity instruments
Shares issued by Portuguese entities	72 824	72 494
Impairment	( 28 323)	( 27 997)
Quotas	45 042	44 971
Shares issued by foreign entities	38 766	32 570
Impairment	( 18 178)	( 18 108)
	110 131	103 930
Other securities
Participating units issued by Portuguese entities	226 055	236 099
Impairment	( 26 140)	( 18 188)
Participating units issued by foreign entities	3 308	2 122
	203 223	220 033
Loans and other receivables	22 430	22 119
Impairment	( 21 013)	( 20 743)
	1 417	1 376
Overdue securities	1 045	1 635
Impairment	( 1 045)	( 1 635)
	7 467 735	9 624 243

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 2014 and 2013 are presented in Note 4.21.

4.6. Loans and advances to credit institutions

This caption is made up as follows:

	30 Sep. 14	31 Dec. 13 Proforma
Loans and advances to other Portuguese credit institutions
Deposits	417 469	346 060
Other loans	78 800	59 100
Securities purchased with resale agreements	199 800	4 670
Other advances	11 551	9 491
Accrued interest	1 446	843
	709 066	420 164
Loans and advances to other foreign Central Banks	320 639	327 540
Loans and advances to other foreign credit institutions
Very short term loans and advances	445 555	309 416
Deposits	311 054	105 131
Loans	44	44
Securities purchased with resale agreements	16 836	28 881
Other loans and advances	517 823	693 730
Accrued interest	4 243	1 187
	1 616 194	1 465 929
Commission relating to amortised cost (net)	( 40)	( 21)
	2 325 220	1 886 072
Impairment	( 3)	( 2)
	2 325 217	1 886 070

The changes in impairment losses and provisions in the first nine months of 2014 and 2013 are presented in Note 4.21.

4.7. Loans and advances to customers

This caption is made up as follows:

	30 Sep. 14	31 Dec. 13 Proforma
Loans
Domestic loans
Companies
Discount	103 012	91 484
Loans	4 682 329	5 123 437
Commercial lines of credit	806 071	852 796
Demand deposits - overdrafts	140 959	134 342
Invoices received - factoring	326 070	375 189
Finance leasing	228 556	215 594
Real estate leasing	347 637	373 626
Other loans	19 201	18 328
Loans to individuals
Housing	11 127 285	11 390 108
Consumer	663 326	717 098
Other loans	475 273	498 513
Foreign loans
Companies
Discount	295	622
Loans	2 756 517	2 245 142
Commercial lines of credit	309 343	144 305
Demand deposits - overdrafts	8 926	22 259
Invoices received - factoring		826
Finance leasing	424	171
Real estate leasing	671	884
Other loans	272 688	301 621
Loans to individuals

Housing	104 480	210 177
Consumer	257 634	223 910
Other loans	89 819	87 326
Accrued interest	81 097 22 801 613	63 544 23 091 302
Securities
Issued by Portuguese government entities	99 978	99 963
Issued by other Portuguese entities
Non subordinated debt securities
Bonds	1 330 033	1 267 965
Commercial paper	888 010	986 755

Issued by foreign government entities	11 800
Issued by other foreign entities
Non subordinated debt securities
Bonds	468 808	374 443
Subordinated debt	24 720	24 720
Accrued interest	22 699	19 213
Deferred interest	( 512)	( 911)
	2 845 536	2 772 148
Correction of the amount of hedged assets	42 073	33 922
Commission relating to amortised cost (net)	2 660	2 467
	25 691 882	25 899 839
Overdue loans and interest	1 049 335	997 229
Loan impairment	(1 042 389)	( 931 935)
	25 698 828	25 965 133

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

	30 Sep. 14	31 Dec. 13 Proforma
Non-derecognised securitised assets1
Loans
Housing	4 432 976	4 618 430
Loans to SME's	3 222 869	3 101 221
Accrued interest	19 901	18 500
	7 675 746	7 738 151

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 4.20).

At September 30, 2014 and December 31, 2013 the caption "Loans to Customers" also included operations allocated to the Cover Pool given as collateral for Covered Bonds issued by Banco BPI (Note 4.19), namely:

5 765 125 t. euro and 5 729 852 t. euro, respectively, allocated as collateral to mortgage bonds,
688 144 t. euro and 673 149 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. 14	31 Dec. 13 Proforma
Debt instruments
Issued by Portuguese government entities	99 978	99 963
Issued by other Portuguese entities	1 472 121	1 238 859
Issued by other foreign entities	473 883	377 812
	2 045 982	1 716 634

The changes in impairment losses and provisions in the first nine months of 2014 and 2013 are presented in Note 4.21.

4.8 Held to maturity investments This caption is made up as follows:

	30 Sep. 14	31 Dec. 13 Proforma
Debt Instruments
Bonds issued by other Portuguese entities
Non-subordinated debt	1 184	24 457
Bonds issued by foreign government entities	59 986	59 965
Bonds issued by other foreign entities
Non-subordinated debt	40 041	49 980
Subordinated debt	1 900	1 900
Accrued interest	586	575
	103 697	136 877

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

4.9 Investment properties

The caption Investment property refers to properties held by the fund Imofomento – Fundo de Investimento Imobiliário Aberto which is consolidated in accordance with the full consolidation method.

	30 Sep. 14	30 Sep. 13 Proforma
Balance at the beginning of the period (Dec 31)
Cost	168 087	170 222
Revaluations	( 3 138)	( 615)
Net value	164 949	169 607
Acquisitions	508	13
Sales and write-offs
Cost	7 324	684
Revaluations	( 577)	( 81)
Revaluations	( 2 028)	( 1 533)
Balance at the end of the period (Sep. 30)
Cost	161 271	169 551
Revaluations	( 5 743)	( 2 229)
Net value	155 528	167 322

The changes in this caption in the first nine months of 2014 and 2013 were as follows:

The impact of the revaluation to fair value of the investment properties is recorded in the statement of income caption "Net operating income and expenses" (Note 4.39).

4.10. Other tangible assets

The changes in other tangible assets in the first nine months of 2014 were as follows:

		Gr os s							De pre	cia tio n			Ne t	Ne t
	Ba lan at ce De 31 13 c. , for Pro ma	Pu rch a se s	Sa les d w rite an off s	Tra fer ns s d o the an rs	Fo rei gn ch ex an ge dif fer en -ce s	Ba lan at ce Se 30 14 p. ,	Ba lan at ce De c. 3 1, 13 for Pro ma	De cia tio pre n for th eri od e p	Sa les d an -of fs ite wr	Tra fer ns s d o the an rs	Fo rei gn ch ex an ge dif fer en -ce s	Ba lan at ce Se 30 14 p. ,	Ba lan at ce Se 30 14 p. ,	Ba lan at ce De c. 3 1, 13 for Pro ma
Pro rty pe
P for ert rop ow n u se y	13 8 1 26	1 020	( 8) 24	2 174	7 72 9	14 8 8 01	28 08 2	1 97 2		( 14)	9 01	30 94 1	11 7 8 60	11 0 0 44
O the ert r p rop y	1 04		( ) 91			1 3	3 6		( ) 34			2	1 1	6 8
L hol d i ts ea se mp rov em en	11 0 1 39	1 19	( ) 2 6 86	2 303	3 23 2	11 3 1 07	96 48 4	1 90 0	( ) 2 3 47	( ) 214	2 23 8	98 06 1	15 04 6	13 65 5
	24 8 3 69	1 139	( 3 0 25 )	4 477	10 96 1	26 1 9 21	12 4 6 02	3 87 2	( 2 3 81 )	( 22 8)	3 139	12 9 0 04	13 2 9 17	12 3 7 67
Eq uip nt me
F itu d f ixtu urn re an res	52 82 0	5 67	( ) 3 3 24	4 5	9 58	51 06 6	45 14 1	1 33 5	( ) 3 2 76	( 3)	5 10	43 70 7	7 35 9	7 679
M hin d t ls ac ery an oo	14 05 6	4 75	( 1 1 46 )	2	3 19	13 70 6	12 44 7	4 30	( 1 1 41 )	( 13)	2 10	11 93 3	1 773	1 609
C ter ha rdw om pu are	18 5 4 32	4 179	( ) 4 9 75	1 050	2 17 8	18 7 8 64	17 5 3 81	4 82 3	( ) 4 9 62	7	1 762	17 7 0 11	10 85 3	10 05 1
I rior in llat ion nte sta s	15 61 5 5	9 81	( 16 718 )	4 72	6 75	14 0 9 71	12 1 9 52	6 17 9	( 15 05 5)	( 44 )	3 18	11 3 3 50	27 62 1	33 60 9
V eh icle s	11 72 2	1 004	( 86 9)	4 6	8 11	12 71 4	8 32 7	1 50 9	( 81 4)	1 38	6 09	9 76 9	2 945	3 395
S uri uip ty nt ec eq me	26 90 7	4 23	( ) 474	8 1	3 87	27 32 4	23 36 3	7 44	( 5) 46	( ) 212	1 98	23 62 8	3 696	3 544
O the ipm t r e qu en	5 83	1	( 2)		3 8	6 20	1 39	4		( 1)	4	1 46	4 74	4 44
	44 7 0 81	7 630	( 27 50 8)	1 696	5 36 6	43 4 2 65	38 6 7 50	15 02 4	( 25 71 3)	( 128 )	3 61 1	37 9 5 44	54 72 1	60 33 1
Ta ible s in set ng as pr og res s	10 67 4	770 7		( 7 0 94 )	4 33	11 78 3							11 78 3	10 67 4
Ot he ible r ta set ng as s	12 0 57	1 0	( 28 0)	( 36 )		12 26 4	10 00 5	1 39	( 24 9)	( 42 )		9 85 3	2 41 1	2 565
	23 24 4	7 78 0	( 28 0)	( 7 1 30 )	4 33	24 04 7	10 00 5	1 39	( 24 9)	( 42)		9 85 3	14 19 4	13 23 9
	71 8 6 94	16 54 9	( 3) 30 81	( 7) 95	16 76 0	72 0 2 33	52 1 3 57	19 03 5	( 3) 28 34	( 8) 39	6 75 0	51 8 4 01	20 1 8 32	19 7 3 37

				Gr os s					De cia tio pre n			Ne t	Ne t
	Ba lan at ce De 31 12 c. , Pro for ma	Pu rch a se s	Sa les d w rite an - off s	Tra fer s an ns d o the rs	Fo rei gn ch ex an ge dif fer en -ce s	Ba lan at ce Se 30 13 p. , Pro for ma	Ba lan at ce De c. 3 1, 12 Pro for ma	De cia tio pre n for th eri od e p	Sa les d an ite -of fs wr	Fo rei gn ch ex an ge dif fer en -ce s	Ba lan at ce Se 30 13 p. , Pro for ma	Ba lan at ce Se 30 13 p. , Pro for ma	Ba lan at ce De 31 12 c. , Pro for ma
Pro rty pe
P for ert rop y ow n u se	13 6 8 00	4 36	( 143 )	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
O the 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 2 64	1 04 1	( 1 8 68 )	5 56 6	( 5 7 77)	24 8 2 26	12 3 7 50	3 71 5	( 1 5 80 )	( 1 5 97 )	12 4 2 88	12 3 9 38	12 5 5 14
Eq uip nt me
F itu d f ixt urn re an ure s	52 83 5	8 88	( ) 352	9 5	( 9) 52	52 93 7	44 00 1	1 43 1	( 6) 34	( 4) 25	44 83 2	8 10 5	8 834
M hin d t ls ac ery an oo	14 20 3	15 5	( 352 )	( 16 )	( 16 7)	14 18 3	12 40 5	4 79	( 35 1)	( 102 )	12 43 1	1 2 75	1 79 8
C ha rdw ter om pu are	18 7 9 20	2 774	( ) 3 0 91	1 150	( ) 1 0 48	18 7 7 05	17 8 7 35	5 19 6	( ) 3 0 74	( 5) 85	18 0 0 02	7 70 3	9 185
I rio r in llat ion nte sta s	16 0 4 75	1 139	( 4 6 81 )	1 60	( 35 0)	15 6 7 43	11 6 5 53	65 1 7	( 2 5 22 )	( 160 )	12 1 5 22	35 22 1	43 92 2
V eh icle s	10 75 8	1 33 0	( 1) 51	2 14	( 5) 41	11 37 6	7 30 1	1 50 3	( 6) 47	( 6) 28	8 04 2	3 33 4	3 45 7
S uri uip ty nt ec eq me	27 69 2	4 82	( 185 )	( 1 0 78 )	( 19 1)	26 72 0	22 70 4	8 03	( 16 8)	( 100 )	23 23 9	3 48 1	4 98 8
O the ipm t r e qu en	6 20	3		( 8)	( ) 22	5 93	1 33	5			1 38	4 55	4 87
	45 4 5 03	7 13 1	( ) 9 1 72	5 17	( 22) 2 7	45 57 0 2	38 1 8 32	17 06 8	( ) 6 9 37	( 57 ) 1 7	39 0 2 06	05 60 1	72 67 1
Ta ible s in set ng as pr og res s	9 62 4	6 128		( 6 4 18 )	( 20 8)	9 126						9 12 6	9 624
Ot he ible r ta set ng as s	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 61 5	6 130	( 25 1)	( 6 4 18 )	( 20 8)	21 86 8	10 11 1	1 81	( 19 1)		10 10 1	11 76 7	12 50 4
	72 6 3 82	14 30 2	( 11 29 1)	( 33 5)	( 8 7 07)	72 0 3 51	51 5 6 93	20 96 4	( 8 7 08 )	( 3 3 54 )	52 4 5 95	19 5 7 56	21 0 6 89

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

4.11. Intangible assets

The changes in intangible assets in the first nine months of 2014 were as follows:

		Gr os s						De cia tio pre n					Ne t
	Ba lan at ce De 31, 13 c. Pro for ma	Pu rch a se s	Sa les d w rite an off s	Tra nsf ers an d o the rs	Fo rei gn ch ex an ge dif fer en ce s	Ba lan at ce Se 30 14 p. ,	Ba lan at ce De c. 3 1, 13 Pro for ma	De cia tio pre n for th eri od e p	Sa les d an ite -of fs wr	Tra nsf ers d o the an rs	Ba lan at ce Se 30 14 p. ,	Ba lan at ce Se 30 14 p. ,	Ba lan at ce De 31, 13 c. Pro for ma
So ftw are
	71 04 4	1 400	( 13)	6 413	5 37	79 38 1	62 58 1	3 76 8	( 14)	3 62	66 69 7	12 68 4	8 463
Oth inta ible set er ng as s	28 73 5		( ) 2 4 84		1 12	26 36 3	26 06 3	9	( ) 2 4 85	1 12	23 69 9	2 66 4	2 672
	99 77 9	1 400	( 2 4 97 )	6 413	6 49	10 5 7 44	88 64 4	3 77 7	( 2 4 99 )	4 74	90 39 6	15 34 8	11 13 5
Inta ible s in set ng as pr ogr ess	8 0 14	2 883		( ) 6 4 39		4 458						4 4 58	8 014
	10 7 7 93	4 283	( 2 4 97 )	( 26 )	6 49	11 0 2 02	88 64 4	3 77 7	( 2 4 99 )	4 74	90 39 6	19 80 6	19 14 9

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

				Gr os s			De cia tio pre n					Ne t	Ne t
	Ba lan at ce De 31, 12 c. Pro for ma	Pu rch a se s	Sa les d w rite an off s	Tra nsf ers d o the an rs	Fo rei gn ch ex an ge dif fer en ce s	Ba lan at ce Se 30 13 p. , Pro for ma	Ba lan at ce De 12 Pro c. 3 1, for ma	De cia tio pre n for th eri od e p	Sa d wr les an ite -of fs	Tra nsf ers an d o the rs	Fo rei gn ha e dif exc ng fer en -ce s	Ba lan at Se ce 13 Pro 30 p. , for ma	Ba lan at ce De 31, 12 c. Pro for ma
So ftw are
	65 11 6	1 359		1 140	( 2) 23	67 38 3	59 08 9	2 72 8		( ) 144	61 67 3	5 71 0	6 027
Oth inta ible set er ng as s	30 14 4		( ) 1 0 02		( 62)	29 08 0	27 46 0	9	( ) 1 0 02	( 61)	26 40 6	2 67 4	2 684
	95 26 0	359 1	( ) 1 0 02	1 140	( 4) 29	96 46 3	54 86 9	2 73 7	( ) 1 0 02	( 205 )	88 07 9	8 38 4	8 711
Inta ible set s in ng as pr ogr ess	5 3 06	3 013		( ) 1 8 41		6 478						6 4 78	5 306
	10 0 5 66	4 372	( 1 0 02 )	( 70 1)	( 29 4)	10 2 9 41	86 54 9	2 73 7	( 1 0 02 )	( 205 )	88 07 9	14 86 2	14 01 7

4.12. 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. 14	31 Dec. 13 Proforma	30 Sep. 14	31 Dec. 13 Proforma
Banco Comercial e de Investimentos, S.A.R.L.	30.0	30.0	51 439	44 967
Companhia de Seguros Allianz Portugal, S.A.	35.0	35.0	104 992	95 875
Cosec – Companhia de Seguros de Crédito, S.A.	50.0	50.0	28 090	27 935
Finangeste – Empresa Financeira de Gestão e Desenvolvimento, S.A.	32.8	32.8	20 348	20 507
Inter-Risco - Sociedade de Capital de Risco, S.A.	49.0	49.0	840	669
Unicre - Instituição Financeira de Crédito, S.A.	21.0	21.0	34 149	32 039
			239 858	221 992

4.13. Tax assets

This caption is made up as follows:

		31 Dec. 13
	30 Sep. 14	Proforma
Current tax assets
Corporate income tax recoverable	17 885	20 234
Others	2 099	2 003
	19 984	22 237
Deferred tax assets
Due to temporary differences	319 306	430 568
Due to tax losses carried forward	119 804	86 887
	439 110	517 455
	459 094	539 692

Details of deferred tax assets are presented in Note 4.42.

4.14. Other assets

This caption is made up as follows:

	30 Sep. 14	31 Dec. 13 Proforma
Debtors, other applications and other assets
Debtors for future operations	4 938	11 609
Collateral accounts	7 337	5 289
Other aplications	9 302	12 592
VAT recoverable	1 925	173
Debtors for loan interest subsidy receivable	4 883	5 429
Other debtors	95 028	87 792
Overdue debtors and other applications	392	571
Impairments for debtors and other applications	( 2 159)	( 982)
Other assets
Gold	58	51
Other available funds and other assets	367	807
	122 071	123 331
Tangible assets available for sale	184 132	174 361
Impairment	( 34 526)	( 35 781)
	149 606	138 580
Accrued income
For irrevocable commitments assumed in relation to third parties	266	263
For banking services rendered to third parties	3 118	2 352
Other accrued income	24 019	31 551
	27 403	34 166
Deferred expenses
Insurance	85	14
Rent	3 658	3 456
Contributions to the Deposit Guarantee Fund (Note 4.39)	675
Initial contribution to the Resolution Fund (Note 4.39)	677
Extraordinary contribution of the Banking System	3 875
Other deferred expenses	13 029	8 459
	21 999	11 929
Liability for pensions and other benefits
Pension Fund Asset Value
Pensioners and employees	1 178 887	1 129 067
Directors	39 030	35 262
Past Service Liabilities
Pensioners and employees	(1 133 957)	(1 082 369)
Directors	( 41 818)	( 39 137)
Others	( 1 464)	( 1 143)
	40 678	41 680
Other accounts
Foreign exchange transactions pending settlement	59 354
Stock exchange transactions pending settlement	178 374	6 837
Operations on assets pending settlement	223 398	354 523
	461 126	361 360
	822 883	711 046

The caption "Other debtors" at September 30, 2014 and December 31, 2013 includes 79 472 t. euro and 72 511 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 2014 were as follows:

	Balance at 31 Dec. 13 Proforma		Sales and write Aquisi offs tions and		Increase / Reversals of		Foreign exchan ge	Balance at 30 Sep. 14
	Gross	Impair ment	Net	transfers	Gross	Impair ment	impairment	diffe rences	Gross	Impair ment	Net
Assets received in settlement of defaulting loans
Real estate	168 251	( 33 214) 135 037			35 575 ( 25 487)	3 109	( 2 352)	147		178 486 ( 32 457) 146 029
Equipment	2 129	( 1 308)	821	1 400	( 2 431)	552	12	13	1 111	( 744)	367
Others	61	( 61)							61	( 61)
Other tangible assets
Real estate	3 920	( 1 198)	2 722	554			( 66)		4 474	( 1 264)	3 210
	174 361	( 35 781) 138 580			37 529 ( 27 918)	3 661	( 2 406)	160		184 132 ( 34 526) 149 606

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

	Balance at 31 Dec. 12		Aquisi tions and	Sales and write offs		Increase / Reversals of	Foreign exchan ge	Balance at 31 Sep. 13 proforma
	Gross	Impair ment	Net	transfers	Impair Gross 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 caption "Other accrued income" at September 30, 2014 and December 31, 2013 includes 14 775 t. euro and 19 380 t. euro, respectively, relating to accrued commission from participation on the results of insurance products.

At September 30, 2014 and December 31, 2013 the caption "Past service liabilities – Others" corresponded to the liability of Banco de Fomento Angola in accordance with Law 18/90 of Angola, regarding the Angola Social Security system, which defines that retirement pensions must be granted to all Angolan employees enrolled in the Social Security.

At September 30, 2014 and December 31, 2013 the balance of the caption asset operations pending adjustment includes:

162 418 t. euro and 282 640 t. euro, respectively, relating to securitisation operations carried out by the BPI Group (Notes 4.7 and 4.20), resulting from temporary differences between settlement of the securitised loans and settlement of the liability for assets not derecognised;
28 201 t. euro and 32 576 t. euro, respectively, relating to taxes to be settled, of which 6 849 t. euro and 8 631 t. euro, respectively, relate to taxes in litigation, paid under Decree-Law 248-A / 02 of November 14. The balance at September 30, 2014 and December 31, 2013 also includes 19 916 t. euro and 19 921 t. euro, respectively, relating to taxes in litigation paid under Decree-Law 151-A / 13 of October 31;
6 595 t. euro and 9 669 t. euro, respectively, relating to housing loans pending settlement;

The caption "Stock exchange transactions pending settlement" refers to the sale of securities only settled in the following month.

The changes in impairment losses and provisions in the first nine months of 2014 and 2013 are shown in Note 4.21.

4.15. Resources of Central Banks

This caption is made up as follows:

	30 Sep. 14	31 Dec. 13 Proforma
Resources of the Bank of Portugal
Deposits	1 500 000	4 073 961
Accrued interest	21 644	55 501
Resources of other Central Banks
Deposits	10 727	10 579
Accrued interest	6	27
	1 532 377	4 140 068

During the first nine months of 2014 and in 2013, Banco BPI took funds from the EuroSystem, using part of its portfolio of eligible assets for this purpose (Note 4.32).

4.16. Financial liabilities held for trading

This caption is made up as follows:

	30 Sep. 14	31 Dec. 13 Proforma
Short selling
Debt instruments
Bonds issued by foreign government entities	3 392
Derivative instruments with negative fair value (Note 4.4)	338 828	255 245
	342 220	255 245

4.17. Resources of other credit institutions

This caption is made up as follows:

	30 Sep. 14	31 Dec. 13 Proforma
Resources of Portuguese credit institutions
Very short term resources	46 730
Deposits	388 924	152 118
Loans	60
Other resources	6 435	6 061
Accrued interest	1 158	699
	443 307	158 878
Resources of foreign credit institutions
Deposits of international financial organisations	410 726	163 332
Very short term resources	878	924
Deposits	199 290	159 683
Debt securities sold with repurchase agreements	454 548	865 667
Other resources	128 520	96 201
Accrued interest	1 342	1 195
	1 195 304	1 287 002
Correction of the amount of hedged liabilities	12 226	7 444
Commission relating to amortised cost		( 75)
	1 650 837	1 453 249

4.18. Resources of customers and other debts

This caption is made up as follows:

	30 Sep. 14	31 Dec. 13 Proforma
Demand deposits	9 521 944	8 048 458
Term deposits	16 256 452	16 371 658
Savings deposits	84 816	117 349
Compulsory deposits	7 542	6 795
Cheques and orders payable	52 649	60 662
Debt securities sold with repurchase agreements	67 996	106 798
Other resources of customers	46 532	50 015
Minority interests in investment funds
BPI Alternative Fund (Lux)	73 581	18 923
BPI Obrigações Mundiais	9 060	6 678
Imofomento	91 352	102 749
Capitalisation insurance products - Unit links	731 501	430 206
Capitalisation insurance products - Guaranteed Rate and Guaranteed Retirement	69 123	85 782
Accrued interest	209 068	185 445
	27 221 616	25 591 518
Correction of the amount of hedged liabilities	49 136	25 973
Commission relating to amortised cost (net)		( 3)
	27 270 752	25 617 488

The caption "Resources of customers" at September 30, 2014 included 270 765 t. euro and 185 288 t. euro, respectively, relating to deposits of investment funds and pension funds managed by the BPI Group (205 652 t. euro and 153 918 t. euro, respectively, at December 31, 2013).

4.19. Debt securities

This caption is made up as follows:

	30 Sep. 14					31 Dec. 13 Proforma
		Repurcha		Average interest		Repurcha		Average interest
	Issued	sed	Balance	rate	Issued	sed	Balance	rate
Commercial Paper
EUR	11 346		11 346	1.3%
	11 346		11 346
Covered Bonds
EUR	4 325 000	(2 807 100)	1 517 900	1.6%	4 325 000	(2 805 600)	1 519 400	1.6%
	4 325 000	(2 807 100)	1 517 900		4 325 000	(2 805 600)	1 519 400
Fixed rate cash bonds
EUR	505 201	( 90 719)	414 482	3.6%	842 580	( 201 091)	641 489	4.2%
USD					11 333	( 2 871)	8 462	3.4%
JPY					27 640		27 640	2.5%
	505 201	( 90 719)	414 482		881 553	( 203 962)	677 591
Variable rate cash bonds
EUR	30 000	( 19 401)	10 599	1.4%	142 000	( 42 000)	100 000	0.9%
	30 000	( 19 401)	10 599		142 000	( 42 000)	100 000
Variable income cash bonds
EUR	277 490	( 53 339)	224 151		295 866	( 87 127)	208 739
USD	59 266	( 10 228)	49 038		31 343	( 8 513)	22 830
	336 756	( 63 567)	273 189		327 209	( 95 640)	231 569
	5 208 303	(2 980 787)	2 227 516		5 675 762	(3 147 202)	2 528 560
Accrued interest			24 803				33 430
Correction of the amount of hedged
liabilities			15 783				45 031
Premiums and commission (net)			( 9 374)				( 8 566)
			31 212				69 895
			2 258 728				2 598 455

The changes in the bonds issued by the BPI Group during the first nine months of 2014 were as follows:

	Commercial Paper	Covered Bonds	Fixed rate bonds	Variable rate bonds	Variable income bonds	Total
Balance at December 31, 2013		1 519 400	677 591	100 000	231 569	2 528 560
Bonds issued during the year	11 346		116 915	30 000	162 862	321 123
Bonds redeemed			( 493 267)	( 142 000)	( 155 628)	( 790 895)
Repurchases (net of resales)		( 1 500)	113 243	22 599	32 890	167 232
Exchange difference					1 496	1 496
Balance at September 30, 2014	11 346	1 517 900	414 482	10 599	273 189	2 227 516

The changes in the bonds issued by the BPI Group during 2013 were as follows:

	Deposit certificates	Commercial 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				86 685		108 648	195 333
Bonds redeemed	( 9)	( 19 889)		(1 059 255)	( 77 579)	( 506 207)	(1 662 939)
Repurchases (net of resales)			( 53 000)	145 660	62 135	190 726	345 521
Exchange difference				( 7 985)		( 273)	( 8 258)
Balance at December 31, 2013			1 519 400	677 591	100 000	231 569	2 528 560

Bonds issued by the BPI Group at September 30, 2014, by maturity date, are as follows:

		Maturity
	2014	2015	2016	2017-2020	> 2020	Total
Commercial Paper
EUR		11 346				11 346
		11 346				11 346
Covered Bonds
EUR		792 900	325 000	400 000		1 517 900
		792 900	325 000	400 000		1 517 900
Fixed rate bonds
EUR	26 882	142 367	224 855	378	20 000	414 482
	26 882	142 367	224 855	378	20 000	414 482
Variable rate bonds
EUR			10 599			10 599
			10 599			10 599
Variable income bonds
EUR	50 261	24 581	30 659	118 650		224 151
USD		11 329	10 498	27 211		49 038
	50 261	35 910	41 157	145 861		273 189
Total	77 143	982 523	601 611	546 239	20 000	2 227 516

Bonds issued by the BPI Group at December 31, 2013, by maturity date, are as follows:

		Maturity
	2014	2015	2016	2017-2020	> 2020	Total
Covered Bonds
EUR		794 400	325 000	400 000		1 519 400
		794 400	325 000	400 000		1 519 400
Fixed rate bonds
EUR	364 879	146 191	109 999	420	20 000	641 489
USD	8 462					8 462
JPY					27 640	27 640
	373 341	146 191	109 999	420	47 640	677 591
Variable rate bonds
EUR	100 000					100 000
	100 000					100 000
Variable income bonds
EUR	118 203	14 122	75 784	630		208 739
USD		5 989	16 841			22 830
	118 203	20 111	92 625	630		231 569
Total	591 544	960 702	527 624	401 050	47 640	2 528 560

4.20. Financial liabilities relating to transferred assets

This caption is made up as follows:

	30 Sep. 14	31 Dec. 13 Proforma
Liabilities relating to assets not derecognised in securitisation operations (Note 4.7)
Loans
Housing loans	4 597 342	4 787 212
Loans to SME's	3 365 200	3 339 300
Liabilities held by the BPI Group	(6 829 633)	(6 738 114)
Accrued costs	1 569	1 457
Commission relating to amortised cost (net)	( 2 170)	( 2 559)
	1 132 308	1 387 296

4.21. Provisions and impairment losses

The changes in provisions and impairment losses of the Group during the first nine months of 2014 were as follows:

	Balance at Dec. 31, 13	Increases	Decreases and reversals	Utilisation	Exchange differences and others	Balance at Sep. 30 14
Impairment losses on loans and advances to	2	1				3
credit institutions (Note 4.6)
Impairment losses on loans and advances to						1 042 389
customers (Note 4.7)	931 935	165 303	( 11 041)	( 49 757)	5 949
Impairment losses on financial assets available for
sale (Note 4.5)
Debt instruments	1 635			( 590)		1 045
Equity instruments	46 105	326			70	46 501
Other securitites	18 188	7 952				26 140
Loans and other receivables	20 743	270				21 013
Impairment losses on other assets
Tangible assets held for sale	35 781	2 906	( 500)	( 3 661)		34 526
Debtors, other applications and other assets	982	1 914	( 672)	( 65)		2 159
Impairment losses and provisions for guarantees
and commitments	46 766	2 603	( 12 289)		378	37 458
Other provisions	77 272	6 982	( 2 941)	( 14 661)	1 369	68 021
	1 179 409	188 257	( 27 443)	( 68 734)	7 766	1 279 255

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	952		( 538)	( 394)	( 18)	2
Impairment losses on loans and advances to						902 054
customers	783 157	192 287	( 7 026)	( 63 799)	( 2 565)
Impairment losses on financial assets available for
sale
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
Tangible assets held for sale	64 707	22 412	( 7 700)	( 3 479)		75 940
Debtors, other applications and other assets	1 317	377	( 746)			948
Impairment losses and provisions for guarantees and commitments	48 106		( 2 788)		( 50)	45 268
Other provisions	90 392	4 151	( 2 966)	( 20 898)	8 166	78 845
	1 072 352	224 654	( 22 760)	( 89 173)	5 516	1 190 589

4.22. Technical provisions

This caption is made up as follows:

	30 Sep. 14	31 Dec. 13 Proforma
Immediate Life Annuity / Individual	4	5
Immediate Life Annuity / Group	24	26
Family Savings	9	26
BPI New Family Savings	2 217 022	1 481 043
BPI Retirement Guaranteed	151 021	143 920
BPI Retirement Savings	980 677	892 927
BPI Non Resident Savings	310 414	162 780
Planor	5 418	5 333
PPR BBI Life	2 253	2 542
Savings Investment Plan / Youths	988	1 080
South PPR	63	86
	3 667 893	2 689 768

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.

4.23. Tax liabilities

This caption is made up as follows:

	30 Sep. 14	31 Dec. 13 Proforma
Current Tax Liability
Corporate income tax payable	23 565	19 532
Other	215	202
	23 780	19 734
Deferred Tax Liability
On temporary differences	34 290	37 977
	34 290	37 977
	58 070	57 711

Details of the deferred tax liability are presented in Note 4.42.

4.24. Contingent convertible subordinated bonds

In the first half of 2014 Banco BPI repaid the total amount of the contingent convertible subordinated bonds issued on June 29, 2012 under the Recapitalisation Plan.

At December 31, 2013 this caption was made up as follows:

	31 Dec. 13 Proforma
	Issued	Repurcha sed	Balance	Average interest rate
Contingent convertible subordinated
bonds
EUR	1 200 000	( 280 000)	920 000	8.8%
	1 200 000	( 280 000)	920 000
Accrued interest			433
			920 433

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, included:

a share capital increase of 200 000 t. euro, with shareholders' pre-emptive 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 were 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 as from the date of issue, and the Recapitalisation Plan of the Bank established 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. 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. Since that date the Bank has fully repaid the contingent convertible subordinated bonds, as follows:

100 000 t. euro on December 4, 2012;
200 000 t. euro on March 13, 2013;
80 000 t. euro on July 16, 2013;
500 000 t. euro on March 19, 2014;
420 000 t. euro on June 25, 2014.

The contingent convertible subordinated bonds bore 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 were 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 were 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.

Should the conversion into Banco BPI shares referred to above have occurred, it would have been 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 did not occur because, as mentioned above, in August, 2012, 200 000 t.euro of these instruments were repurchased, reducing the amount on that date to 1 300 000 t.euro.

4.25. Other Subordinated debt and participating bonds

This caption is made up as follows:

	30 Sep. 14			31 Dec. 13 Proforma
	Repurcha		Average interest		Repurcha		Average interest
	Issued	sed	Balance	rate	Issued	sed	Balance	rate
Other subordinated debt
Perpetual bonds
EUR	420 000	( 360 000)	60 000	2.5%	420 000	( 360 000)	60 000	2.5%
JPY					51 824	( 51 824)		2.9%
	420 000	( 360 000)	60 000		471 824	( 411 824)	60 000
Other Bonds
EUR	400 000	( 391 293)	8 707	1.6%	400 000	( 327 025)	72 975	1.8%
JPY					120 923	( 120 923)		2.8%
	400 000	( 391 293)	8 707		520 923	( 447 948)	72 975
	820 000	( 751 293)	68 707		992 747	( 859 772)	132 975
Participating bonds
EUR	28 081	( 27 341)	740	0.8%	28 081	( 24 285)	3 796	0.8%
	28 081	( 27 341)	740		28 081	( 24 285)	3 796
Accrued interest			81				160
			81				160
			69 528				136 931

The changes in debt issued by the BPI Group during the first nine months of 2014 were as follows:

	Perpetual bonds	Other bonds	Participating bonds	Total
Balance at December 31, 2013	60 000	72 975	3 796	136 771
Bonds redeemed	( 51 824)	( 120 923)		( 172 747)
Repurchases (net of resales)	51 824	56 655	( 3 056)	105 423
Balance at September 30, 2014	60 000	8 707	740	69 447

The changes in debt issued by the BPI Group during 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)		( 14 788)	( 323)	( 15 111)
Balance at December 31, 2013	60 000	72 975	3 796	136 771

Debt issued by the BPI Group at September 30, 2014 is made up as follows, by residual term to maturity:

			Maturity
	2014	2015	2016	2017-2020	> 2020	Total
Perpetual Bonds
EUR 1	60 000					60 000
Other Bonds
EUR				8 707		8 707
Total	60 000			8 707		68 707

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 stepup due to the fact that the option was not exercised.

Debt issued by the BPI Group at December 31, 2013 is made up as follows, by residual term to maturity:

			Maturity
	2014	2015	2016	2017-2020	> 2020	Total
Perpetual Bonds
EUR 1	60 000					60 000
Other Bonds
EUR				72 975		72 975
Total	60 000			72 975		132 975

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.

4.26. Other liabilities

This caption is made up as follows:

	30 Sep. 14	31 Dec. 13 Proforma
Creditors and other resources
Creditors for futures operations	4 809	9 927
Consigned resources	11 960	18 672
Captive account resources	7 199	7 088
Subscription account resources		199
Guarantee account resources	10 742	10 665
State administrative sector
Value Added Tax (VAT) payable	272	3 869
Tax withheld at source	20 141	21 170
Social Security contributions	4 901	4 696
Other	557	547
Contributions to other health systems	1 426	1 410
Creditors for factoring contracts	15 539	19 859
Creditors for the supply of assets	6 472	7 553
Contributions owed to the Pension Fund
Pensioners and employees		2 853
Directors		2 805
Other creditors	112 568	140 345
Deferred costs	( 167)	( 89)
	196 419	251 569
Accrued costs
Creditors and other resources	351	226
Personnel costs	115 202	103 928
General administrative costs	48 023	37 871
Others	5 006	2 421
	168 582	144 446
Deferred income
On guarantees given and other contingent liabilities	4 089	4 637
Others	5 560	4 963
	9 649	9 600

Deferred costs
Preference shares	( 450)
	( 450)
Other accounts
Foreign exchange transactions pending settlement		6 539
Non stock exchange transactions pending settlement	52 448	3 247
Liabilities pending settlement	59 465	100 697
Other operations pending settlement	106 964	73 855
	218 877	184 338
	593 077	589 953

The caption "Non stock exchange transactions pending settlement" at September 30, 2014 and December 31, 2013 refers to the acquisition of securities only settled in the following month.

The caption "Liabilities pending settlement", at September 30, 2014 and December 31, 2013 includes:

7 350 t. euro and 43 310 t. euro, respectively, relating to loan securitization fund transactions;
4 501 t. euro and 2 572 t. euro, respectively, relating to electronic interbank transfer transactions;
3 166 t. euro and 12 240 t. euro, respectively, relating to ATM/POS transactions to be settled with SIBS.

The caption "Other operations pending settlement", at September 30, 2014 and December 31, 2013 includes:

102 914 t. euro and 84 796 t. euro, respectively, relating to transfers under SEPA (Single Euro Payment Area);
1 589 t. euro and 2 430 t. euro, respectively, relating to the settlement of payments and receipts of Leasing/ALD/Factoring operations.

4.27. Share capital

At December 31, 2013 Banco BPI's share capital amounted to 1 190 000 t. euro. The Shareholders' General Meeting held on April 23, 2014 approved a proposal to increase share capital, to be paid up in kind, under a Public Exchange Offer of subordinated debt, participating bonds and preference shares for new shares of Banco BPI. The exchange operation was completed in June 2014. The nominal value of the securities subject to the offer was 127 001 t. euro, of which 115 758 t. euro accepted the exchange, which corresponds to an acceptance rate of 91%. The share capital increase included 66 924 000 new shares issued at the price of 1.54 euros, which corresponds to a share capital increase of 103 063 t. euro. Following this operation, Banco BPI's share capital was increased to 1 293 063 t. euro, represented by 1 456 924 237 ordinary, nominal dematerialized shares, of no par value.

The Shareholders' General Meeting held on April 23, 2014 granted the Board of Directors of Banco BPI authorization for the following, after obtaining all the permissions necessary considering the terms and conditions (hereinafter referred to as Terms and Conditions) of the Core Tier 1 Capital Instruments (contingent convertible subordinated bonds) subscribed for by the Portuguese State in connection with Banco BPI's recapitalization operation:

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;
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;
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;
ii) the shares sold are delivered to the Portuguese State, under the terms of and pursuant to the "Alternative Interest Payment Mechanism" established in clause 6 of the Terms and Conditions; or
iii) 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).

The purchases and sales authorized by this decision may be carried out within eighteen months from the date thereof, this permission also being applicable, with the due adaptations, to the acquisition and sale of Banco BPI shares by Banco Português de Investimento, S.A..

Without prejudice to its freedom of decision and action under the above permissions, the Board of Directors, in carrying them out, should take into account, whenever it considers it necessary based on the relevant circumstances, the requirements of Commission Regulation (EC) 2273/2003 of December 22, 2003, as well as compliance at all times with the requirements of the Terms and Conditions of clause 11.

4.28. Other equity instruments and treasury shares

These captions are made up as follows:

	30 Sep. 14	31 Dec. 13 Proforma
Other equity instruments
Cost of shares to be made available to Group employees
RVA 2010		124
RVA 2011	1	1
RVA 2012	21	15
RVA 2013	515	23
RVA 2014	18
Costs of options not exercised (premiums)
RVA 2008		828
RVA 2009	786	806
RVA 2010	558	590
RVA 2011	51	55
RVA 2012	476	587
RVA 2013	1 330	385
RVA 2014	295
	4 051	3 414
Treasury shares
Shares to be made available to Group employees
RVA 2010		2
RVA 2011	1	2
RVA 2012	26	26
RVA 2013	935
Shares hedging RVA options
RVA 2008		3 045
RVA 2009	6 242	3 147
RVA 2010	250	95
RVA 2011	2 297	2 391
RVA 2012	3 964	8 382
RVA 2013	23
Other own shares	249
	13 987	17 090

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.

4.29. Revaluation reserves

This caption is made up as follows:

	30 Sep. 14	31 Dec. 13 Proforma
Revaluation reserves
Reserves resulting from valuation to fair value of financial assets available for sale
(Note 4.5):
Debt Instruments
Securities	164 481	( 45 822)
Hedging derivatives	( 231 717)	( 405 990)
Equity Instruments	17 449	16 691
Other	( 12 100)	( 1 751)
Reserve for foreign exchange difference on investments in foreign entities
Subsidiary or associated companies	( 30 043)	( 57 824)
Equity instruments available for sale	( 2)	( 6)
Legal revaluation reserve	703	703
	( 91 229)	( 493 999)
Deferred tax reserve
Resulting from valuation to fair value of financial assets available for sale:
Tax assets	24 963	136 761
Tax liabilities	( 3 873)	( 5 056)
	21 090	131 705
	( 70 139)	( 362 294)

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".

4.30. Other reserves and retained earnings

This caption is made up as follows:

	30 Sep. 14	31 Dec. 13 Proforma
Legal reserve	86 124	86 124
Merger reserve	( 2 463)	( 2 463)
Consolidation reserves and retained earnings	677 144	558 686
Other reserves	580 789	606 346
Actuarial deviations
Associated with the transferred liabilities	( 193 538)	( 193 538)
Associated with the liabilities that remain with the Bank	( 78 942)	( 95 959)
Taxes related to actuarial deviations	79 052	82 998
Loss on treasury shares	( 5 293)	( 2 102)
Taxes relating to gain on treasury shares	1 854	615
	1 144 727	1 040 707

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.

In the first nine months of 2014 BPI Group recorded under the caption "Consolidation reserves and retained earnings" the amount of 9 536 t. euro corresponding to the impact, net of taxes, of the exchange of preference shares for new shares of Banco BPI (Notes 4.27 and 4.31).

This caption at September 30, 2014 also includes (3 467) t. euro relating to the revaluation of the new Banco BPI shares issued as part of the exchange operation of subordinated debt for new shares of Banco BPI (Note 4.38).

4.31. Minority interests

This caption is made up as follows:

	Balance sheet		Statement of income
	30 Sep. 14	31 Dec. 13 Proforma	30 Sep. 14	30 Sep. 13 Proforma
Minority shareholders in:
Banco de Fomento Angola, S.A.	377 358	314 286	82 330	62 741
BPI Capital Finance Ltd	2 000	51 233	864	774
BPI (Suisse), S.A.				3
	379 358	365 519	83 194	63 518

Minority interests in BPI Capital Finance at September 30, 2014 and December 31, 2013 include 1 786 t. euro and 51 021 t. euro, respectively, relating to preference shares:

	30 Sep. 14		31 Dec. 13 Proforma
	Issued	Repurchased	Balance	Issued	Repurchased	Balance
"C" Series Shares	250 000	( 248 214)	1 786	250 000	( 198 979)	51 021
	250 000	( 248 214)	1 786	250 000	( 198 979)	51 021

In the first nine months of 2014 Banco BPI carried out an exchange operation of preference shares for new shares of Banco BPI. The nominal value of the preference shares accepted for exchange amounted to 49 540 t. euro. Considering that the price attributed to the exchange corresponded to 75% of the nominal value, a gain net of taxes in the amount of 9 536 t. euro was obtained, which was recorded under the caption "Consolidation reserves and retained earnings" (Note 4.30).

4.32. Off balance sheet items

This caption is made up as follows:

	30 Sep. 14	31 Dec. 13 Proforma
Guarantees given and other contingent liabilities
Guarantees and sureties	1 852 584	1 832 700
Stand-by letters of credit	80 147	71 565
Documentary credits	247 091	189 201
Sureties and indemnities	118	105
Other guarantees given and other contingent liabilities	13 200	13 200
	2 193 140	2 106 771
Assets given as collateral		9 841 209
Commitments to third parties
Irrevocable commitments
Options on assets	13 722	10 359
Irrevocable credit lines	1 571	1 960
Securities subscription	230 592	326 625
Term commitment to make annual contributions to
the Deposit Guarantee Fund	38 714	38 714
Commitment to the Investor Indemnity System	9 188	10 262
Other irrevocable commitments		293
Revocable commitments	2 885 374	2 632 129
	3 179 161	3 020 342
Responsibility for services provided
Deposit and safeguard of assets	26 884 690	25 409 651
Amounts for collection	116 140	72 501
Assets managed by the institution	5 092 466	4 876 032
	32 093 296	30 358 184

The caption "Assets given as collateral" at September 30, 2014 includes:

116 483 t. euro relating to captive credit and 6 872 886 t. euro relating to securities eligible for funding from the European Central Bank (ECB);
1 052 228 t. euro relating to securities and 126 817 t. euro relating to loans given in guarantee to the European Investment Bank;
5 013 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);
47 354 t. euro relating to securities given in guarantee to the Deposit Guarantee Fund.

At September 30, 2014 the BPI Group managed the following third party assets:
Investment Funds and PPRs	1 944 657
Pension Funds 1	2 210 901

1 Includes the Group companies' Pension Funds.

4.33. Financial margin (narrow sense)

This caption is made up as follows:

	30 Sep. 14	30 Sep. 13 Proforma
Interest and similar income
Interest on deposits with banks	333	1 278
Interest on placements with credit institutions	21 845	25 405
Interest on loans to customers	370 880	404 493
Interest on credit in arrears	9 381	13 779
Interest on securities held for trading and available for sale	233 604	277 831
Interest on securitised assets not derecognised	133 772	133 162
Interest on derivatives	216 687	203 605
Interest on securities held to maturity		105
Interest on debtors and other aplications	1 897	2 520
Other interest and similar income	2 878	3 340
	991 277	1 065 518
Interest and similar expense
Interest on resources
Of central banks	5 881	19 310
Of other credit institutions	5 885	8 347
Deposits and other resources of customers	300 212	318 894
Debt securities	58 565	65 801
Interest from short selling	1 225	386
Interest on derivatives	224 248	238 585
Interest on liabilities relating to assets not derecognised on securitised
operations	11 782	15 099
Interest on contingent convertible subordinated debt	26 675	65 021
Interest on subordinated debt	1 662	2 165
Other interest and similar expenses	95	215
	636 230	733 823

4.34. Gross margin on unit links

This caption is made up as follows:

	30 Sep. 14	30 Sep. 13 Proforma
Income from financial instruments
Interest	3 891	2 068
Gains and losses on financial instruments	21 753	10 230
Gains and losses on capitalisation insurance - unit links	( 25 644)	( 12 298)
Management and redemption comission	3 330	2 168
	3 330	2 168

4.35. Net commission relating to amortised cost

This caption is made up as follows:
	30 Sep. 14	30 Sep. 13 Proforma
Commission received relating to amortised cost
Loans to customers	19 811	22 837
Others	778	974
Commission paid relating to amortised cost
Loans to customers	( 4 337)	( 4 569)
Others	( 921)	( 925)
	15 331	18 317

4.36. Technical result of insurance contracts

This caption is made up as follows::

	30 Sep. 14	30 Sep. 13 Proforma
Premiums	1 166 368	477 853
Income from financial instruments	62 713	52 933
Impairment (Note 4.21)	( 3 302)
Cost of claims, net of reinsurance	( 240 901)	( 293 400)
Changes in technical provisions, net of reinsurance	( 925 770)	( 185 088)
Participation in results	( 35 243)	( 35 029)
	23 865	17 269

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.

4.37. Net commission income

This caption is made up as follows:

	30 Sep. 14	30 Sep. 13 Proforma
Commissions received
On guarantees provided	16 772	17 388
On commitments to third parties	1 943	2 902
On banking services rendered	197 267	200 083
On operations realised on behalf of third parties	14 097	9 428
Other	2 626	2 250
	232 705	232 051
Commissions paid
On guarantees received	49	23
On financial instrument operations	24	255
On banking services rendered by third parties	25 704	28 842
On operations realised by third parties	2 832	1 922
Other	246	( 86)
	28 855	30 956
Other income, net
Refund of expenses	18 506	19 605
Income from banking services	15 555	19 696
Charges similar to fees	( 7 191)	( 6 605)
	26 870	32 696

4.38. Net income on financial operations

This caption is made up as follows:

	30 Sep. 14	30 Sep. 13 Proforma
Gain and loss on operations at fair value
Foreign exchange gain, net	88 622	72 940
Gain and loss on financial assets held for trading
Debt instruments	8 561	3 036
Equity instruments	30 894	48 440
Other securities	( 33)	4
Gain and loss on trading derivative instruments	( 26 396)	( 45 800)
Gain and loss on other financial assets valued at fair value through profit and loss account	653	536
Gain and loss on investments held to maturity		7
Gain and loss on financial liabilities held for trading	( 86)	1 545
Gain and loss on the revaluation of assets and liabilities hedged by
derivatives	66 631	( 102 916)
Gain and loss on hedging derivative instruments	( 55 559)	103 528
Other gain and loss on financial operations	7 490	9 094
	120 777	90 414
Gain and loss on assets available for sale
Gain and loss on the sale of loans and advances to customers	( 198)	1 119
Gain and loss on financial assets available for sale
Debt instruments	( 135 324)	129 041
Equity instruments	68	4 502
	( 135 454)	134 662
Interest and financial gain and loss with pensions
Interest cost relating to the liabilities	( 31 479)	( 31 790)
Income on plan assets computed w ith the discount rate	32 892	34 929
	1 413	3 139

The caption "Other gains and losses on financial operations" at September 30, 2014, includes (3 467) t. euro relating to the revaluation of the new Banco BPI shares issued as part of the exchange operation of subordinated debt for new shares of Banco BPI (Note 4.30).

The caption "Gain and loss on financial assets available for sale – debt instruments" at September 30, 2014 and 2013 includes losses amounting to 103 597 t. euro and gains amounting to 130 475 t. euro, respectively, relating to the sale of Treasury Bonds and Treasury Bills issued by the Portuguese State. At September 30, 2014 this caption also included losses amounting to 28 550 t euro relating to the sale of Italian public debt bonds.

4.39. Operating income and expenses

This caption is made up as follows:

	30 Sep. 14	30 Sep. 13 Proforma
Operating income
Revenue from investment properties	7 468	7 674
Gains on investment properties	8 013	556
Minority interest in the investment fund Imofomento	( 746)	( 1 138)
Gain on tangible assets held for sale	631	357
Gain on other tangible assets	6 805	5 851
Other operating income	4 426	3 261
	26 597	16 561
Operating expenses
Losses on investment properties	9 057	2 342
Expenses w ith investment properties	2 443	1 596
Subscriptions and donations	2 604	2 899
Contributions to the Deposit Guarantee Fund	2 454	2 451
Contributions to the Resolution Fund	1 999	3 341
Contribution to the Investor Indemnity System	8	10
Loss on tangible assets held for sale	1 285	491
Loss on other tangible and intangible assets	8 318	9 226
Other operating expenses	5 237	4 447
	33 405	26 803
Other taxes
Indirect taxes	10 735	3 450
Direct taxes	1 014	869
	11 749	4 319

4.40. Personnel costs

This caption is made up as follows:

	30 Sep. 14	30 Sep. 13 Proforma
Remuneration	212 819	213 556
Long service premium	3 095	2 492
Pension costs	4 145	4 051
Early retirements	26 114	4 085
Death subsidy		( 3 317)
Other mandatory social charges	47 420	47 619
Other personnel costs	7 825	7 675
	301 418	276 161

4.41. Administrative Costs

This caption is made up as follows:

	30 Sep. 14	30 Sep. 13 Proforma
Administrative costs
Supplies
Water, energy and fuel	9 637	10 350
Consumable material	3 958	4 021
Other	865	831
Services
Rent and leasing	36 969	38 239
Communications and computer costs	29 368	30 146
Travel, lodging and representation	6 028	6 193
Publicity	14 827	13 146
Maintenance and repairs	16 213	16 080
Insurance	3 558	3 353
Fees	3 631	3 451
Legal expenses	3 895	4 851
Security and cleaning	8 953	8 705
Information services	4 427	3 809
Temporary labour	2 808	2 902
Studies, consultancy and auditing	6 115	4 966
SIBS	15 341	15 180
Other services	17 150	14 681
	183 743	180 904

4.42. Income tax

At September 30, 2014 and 2013, 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. 14	30 Sep.13 Proforma
Current income tax
For the period	29 254	34 158
Correction of prior years	( 200)	( 2 218)
	29 054	31 940
Deferred tax
Recognition and reversal of temporary differences	( 10 224)	( 23 538)
On tax losses carried forward	( 32 220)	14 558
	( 42 444)	( 9 179)
Contribution over the banking sector	11 678	9 794
Total tax charged to the statement of income	( 1 711)	32 555
Net income before income tax 1	( 52 383)	151 314
Tax burden	3.3%	21.5%

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

Reconciliation between the nominal rate of income tax and the tax burden on the first quarters of 2014 and 2013, as well as between the tax cost/income and the product of the accounting profit times the nominal tax rate are as follows:

	30 Sep. 14		30 Sep.13 Proforma
	Tax rate	Amount	Tax rate	Amount
Net income before income tax		( 52 383)		151 314
Income tax computed based on the nominal tax rate	-20.0%	10 494	34.3%	51 835
Effect of tax rates applicable to foreign branches	-0.1%	36	-0.1%	( 191)
Capital gain and impairment of investments (net)	0.0%	18	0.3%	517
Capital gain of tangible assets (net)	0.0%	( 23)	-0.2%	( 376)
Income on Angolan public debt	93.0%	( 48 694)	-24.5%	( 37 069)
Non taxable dividends	2.8%	( 1 488)	-0.4%	( 641)
Tax on dividends of subsidiary and associated companies	-8.9%	4 687	3.1%	4 648
Tax benefits	1.2%	( 640)	-0.9%	( 1 295)
Impairments and provisions for loans	0.7%	( 355)	-0.3%	( 488)
Non tax deductible pension costs	-1.0%	549	1.2%	1 808
Interest recognised on minority interests	0.4%	( 216)	-0.2%	( 228)
Correction of prior year taxes	-0.3%	134	-0.7%	( 1 072)
Extraordinary investment tax credit	0.5%	( 252)
Difference of tax rate on tax losses 1			2.0%	2 975
Difference of tax rate on tax losses 2	0.7%	( 366)
Tax losses	-39.9%	20 905
Effect of change in the rate of deferred tax			-0.1%	( 199)
Contribution over the financial sector	-22.3%	11 678	6.5%	9 794
Autonomous taxation	-3.7%	1 935	0.6%	951
Other non taxable income and expenses	0.2%	( 113)	1.0%	1 585
	3.3%	( 1 711)	21.5%	32 555

1) The calculation of deferred taxes on tax losses at September 30, 2013 is based on the tax rate of 23% and not on the nominal tax rate (which includes State and Municipal surcharge).

2) Difference resulting from the fact that the effective current income tax rate differs from the rate used to calculate deferred taxes.

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.

Deferred tax assets and liabilities at September 30, 2014 and 2013 are as follows:

	30 Sep. 14		30 Sep. 13 Proforma
	Deferred taxes		Deferred taxes
	Assets	Liabilities	Assets	Liabilities
Pension liabilities	( 1 110)		2 531
Early retirements	32 778		26 927
Long service premium	8 121		6 660
Tax deferral of the impact of the partial transfer of liabilities with pensions to Social Security	24 824		26 001
Provisions and impairments	158 130		156 239
Revaluation of tangible fixed assets		( 661)		( 701)
Revaluation of assets and liabilities hedged by derivatives		( 782)		( 311)
Financial instruments available for sale				( 2 924)
Dividends to be distributed by subsidiary and associated companies		( 8 002)		( 6 862)
Repurchase of debt				( 23 619)
Tax losses	119 107		57 377
Other	4 040	( 20 972)	1 736	( 3 310)
Deferred taxes recognised in the income statement	345 891	( 30 417)	277 471	( 37 727)
Deferred taxes recognised in the fair value reserve	24 963	( 3 873)	178 762	( 3 417)
Deferred taxes recognised in other reserves	68 256		76 264
Total deferred taxes	439 110	( 34 290)	532 496	( 41 144)

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.

4.43. Earnings of associated companies (equity method)

This caption is made up as follows:

	30 Sep. 14	30 Sep. 13 Proforma
Banco Comercial e de Investimentos, S.A.R.L.	6 167	6 216
Companhia de Seguros Allianz Portugal, S.A.	7 036	7 633
Cosec – Companhia de Seguros de Crédito, S.A.	3 677	3 092
Finangeste – Empresa Financeira de Gestão e Desenvolvimento, S.A.	( 172)	( 1 268)
InterRisco - Sociedade de Capital de Risco, S.A.	171	251
Unicre - Instituição Financeira de Crédito, S.A.	2 640	1 666
	19 519	17 590

4.44. 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 2014 and 2013 is as follows:

	30 Sep. 14	30 Sep. 13 Proforma
Banks
Banco BPI, S.A.1	( 248 277)	( 63 061)
Banco Português de Investimento, S.A.1	2 357	934
Banco de Fomento Angola, S.A.1	78 527	58 897
Banco Comercial e de Investimentos, S.A.R.L.1	5 642	5 688
Banco BPI Cayman, Ltd	1 815	1 357
Asset management and brokerage
BPI Gestão de Activos - Sociedade Gestora de Fundos de Investimento Mobiliários, S.A.	5 807	5 320
BPI - Global Investment Fund Management Company, S.A.	1 166	478
BPI (Suisse), S.A.	2 614	3 381
BPI Alternative Fund: Iberian Equities Long/Short Fund 1		1 408
BPI Alternative Fund: Iberian Equities Long/Short Fund Luxemburgo 1	4 765	200
BPI Obrigações Mundiais - Fundo de Investimento Aberto de Obrigações 1	161	( 81)
Imofomento - Fundo de Investiemento Imobiliário Aberto 1	549	549
Venture capital / development
BPI Private Equity - Sociedade de Capital de Risco, S.A.	557	356
Inter-Risco - Sociedade de Capital de Risco, S.A.1	171	251
Insurance
BPI Vida e Pensões - Companhia de Seguros, S.A.	17 855	47 930
Cosec - Companhia de Seguros de Crédito, S.A.	3 677	3 092
Companhia de Seguros Allianz Portugal, S.A.	7 036	7 633
Others
BPI, Inc	( 204)	12
BPI Locação de Equipamentos, Lda	( 6)	37
BPI Madeira, SGPS, Unipessoal, S.A.	( 13)	84
BPI Moçambique - Sociedade de Investimento, S.A. 1	93	( 669)
BPI Capital Finance
BPI Capital Africa	( 1 107)	( 1 363)
Finangeste - Empresa Financeira de Gestão e Desenvolvimento, S.A.1	( 172)	( 1 268)
Unicre - Instituição Financeira de Crédito, S.A.	2 640	1 666
	( 114 347)	72 831

1 Adjusted net income.

4.45. Related parties

The BPI Group's related parties at September 30, 2014 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 11.6% Fundo de Pensões Aberto BPI Valorização Portugal 42.7% Fundo de Pensões Aberto BPI Segurança Portugal 27.3% Fundo de Pensões Aberto BPI Garantia Portugal 11.2% Shareholders of Banco BPI La Caixa Group Spain 44.10% Members of the Board of Directors of Banco BPI 1 Artur Santos Silva Fernando Ulrich Alfredo Rezende de Almeida Allianz Europe Ltd. - Represented by Herbert Walter António Domingues António Lobo Xavier Armando Leite de Pinho Carlos Moreira da Silva Edgar Alves Ferreira Isidro Fainé Casas Ignacio Alvarez-Rendueles João Pedro Oliveira e Costa José Pena do Amaral Manuel Ferreira da Silva Marcelino Armenter Vidal Maria Celeste Hagatong Mário Leite da Silva Pedro Barreto Santoro Finance – Prestação de Serviços, S.A. 2 Tomaz Jervell		Effective	Direct





































	Vicente Tardio Barutel 3

1 Composition for the 2014/2016 term. The tables presented for 2013 refer to the previous composition of the Board of Directors.

2 Pending indication of the person that will represent the entity.

3 Pending registration in the Bank of Portugal.

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, 2014 are as follows:

	Associated and jointly controlled	Pension funds of Employees of the
	companies	BPI Group	Total
Assets
Financial applications	41 126		41 126
Financial assets held for trading and at fair value through
profit or loss		160	160
Loans	54		54
Other assets	14 831		14 831
	56 011	160	56 171
Liabilities
Deposits and technical provisions	29 845	139 040	168 885
Other financial resources		60 072	60 072
Other liabilities	68		68
	29 913	199 112	229 025
Off balance sheet items
Guarantees given and other contingent liabilities
Guarantees and sureties	10 519		10 519
Commitments to third parties
Revocable commitments	2 224		2 224
Responsabilities for services rendered
Deposit and safeguard of assets	1 123 943	961 581	2 085 524
	1 136 686	961 581	2 098 267

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, 2014 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
Assets
Financial applications	123 590			123 590
Financial assets held for trading and at fair value through
profit or loss	4 345		3 042	7 387
Financial assets available for sale			45 049	45 049
Loans	866	11 053	339 364	351 283
Investments held to maturity	15 323			15 323
Other assets	16 400		51	16 451
	160 524	11 053	387 506	559 083
Liabilities
Deposits and technical provisions	14 004	10 053	55 211	79 268
Other liabilities		25	108	133
	14 004	10 078	55 319	79 401
Off balance sheet items
Guarantees given and other contingent liabilities
Guarantees and sureties	21 663	93	127 773	149 529
Commitments to third parties
Revocable commitments	209	415	96 475	97 099
Responsabilities for services rendered
Deposit and safeguard of assets	1 080 622	27 790	281 317	1 389 729
Other			52 000	52 000
Foreign exchange operations and derivatives instruments
Purchases	557 237		3 734	560 971
Sales	( 540 843)		( 3 747)	( 544 590)
	1 118 888	28 298	557 552	1 704 738

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.

	Associated and jointly controlled companies	Pension funds of Employees of the BPI Group	Total
Assets
Financial applications	2 701		2 701
Financial assets held for trading and at fair value
through profit or loss		156	156
Loans	28 538		28 538
Other assets	19 380		19 380
	50 619	156	50 775
Liabilities
Deposits and technical provisions	32 859	116 250	149 109
Other financial resources		60 078	60 078
Other liabilities	944		944
	33 803	176 328	210 131
Off balance sheet items
Guarantees given and other contingent liabilities
Guarantees and sureties	9 631		9 631
Responsabilities for services rendered
Deposit and safeguard of assets	1 052 565	919 179	1 971 744
	1 062 196	919 179	1 981 375

		Members of the	Companies in which Members of the Board of Directors of Banco BPI have
	Shareholders of	Board of Directors	significant
	Banco BPI 1	of Banco BPI 2	influence	Total
Assets
Financial applications	86 226			86 226
Financial assets held for trading and at fair value
through profit or loss	5 191			5 191
Financial assets available for sale			48 094	48 094
Loans	16 487	10 894	200 292	227 673
Investments held to maturity	14 856			14 856
Other assets			102	102
	122 760	10 894	248 488	382 142
Liabilities
Deposits and technical provisions	4 229	6 378	34 885	45 492
Other liabilities	7 110	25	108	7 243
	11 339	6 403	34 993	52 735
Off balance sheet items
Guarantees given and other contingent liabilities
Guarantees and sureties	18 330	93	127 499	145 922
Commitments to third parties
Revocable commitments	204		75 000	75 204
Responsabilities for services rendered
Deposit and safeguard of assets	781 234	22 683	399 545	1 203 462
Other			69 557	69 557
Foreign exchange operations and derivatives
instruments
Purchases	472 787		54 958	527 745
Sales	( 479 634)		( 54 992)	( 534 626)
	792 921	22 776	671 567	1 487 264

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, 2014 are as follows:

	Associated and jointly controlled companies	Pension funds of Employees of the BPI Group	Total
Net income
Financial margin (narrow sense)	( 1)	( 1 498)	( 1 499)
Net comission income	30 648	7	30 655
General administrative costs	( 369)	( 12 338)	( 12 707)
	30 278	( 13 829)	16 449

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, 2014 are as follows:

		Members of the	Companies in which Members of the Board of Directors of Banco BPI have
	Shareholders of	Board of Directors	significant
	Banco BPI 1	of Banco BPI 2	influence	Total
Net income
Financial margin (narrow sense)	581	( 91)	171	661
Net comission income		12	51	63
Net income on financial operations	35			35
	616	( 79)	222	759

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 controlled companies	Pension funds of Employees of 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

	Shareholders of	Members of the Board of Directors	Companies in which Members of the Board of Directors of Banco BPI have significant
	Banco BPI 1	of Banco BPI 2	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.

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: € 1 293 063 324.98 Registered in Oporto C.R.C. and corporate body no. 501 214 534

AI Terminal

Banco Comercial Portugues

1913_10-q_2014-11-28_c6888938-9c87-407a-ba5a-7a236bcdaf01.pdf

Consolidated quarterly information (unaudited accounts)

INDEX

Report

Financial statements and notes

LEADING INDICATORS Amounts in M.€

Note:

CONSOLIDATED OVERVIEW

Capital

Risk

Performance and results

CAPITAL

Common Equity Tier 1 capital ratio

Own funds and own funds requirements Amounts in M.€

Leverage and Liquidity ratios

ECB Comprehensive Assessment

BPI GROUP'S CONSOLIDATED RESULTS

Return on shareholders' equity (ROE)

Capital allocation, recurring profit and ROE by business area from Jan. to Sep. 2014 Amounts in M.€

Loans

Resources

Recourse to the European Central Bank of 1.5 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

Income statement Amounts in M.€

Net income

Resources and loans

Resources

Loans

Financial assets available for sale

Liquidity

Net operating revenue

Net commissions and fees Amounts in M.€

Equity-accounted results of subsidiaries

Equity-accounted earnings Amounts in M.€

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 Amounts in M.€

Employee pension liabilities

Financing of pension liabilities Amounts in M.€

Pension funds' income

Change in actuarial assumptions

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 impairments and recoveries Amounts in M.€

Loans in arrears for more than 90 days and impairments

Equity-accounted results of subsidiaries

CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013 PROFORMA (Translation of balance sheets originally issued in Portuguese - Note 5)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEFOR THE PERIODS ENDED SEPTEMBER 30, 2014 AND 2013 PROFORMA

CONSOLIDATED STATEMENTS OF CASH FLOWS

Notes to the consolidated financial statements as of September 30, 2014 and 2013

1. THE FINANCIAL GROUP

At September 30, 2014 the BPI Group was made up of the following companies:

2. BASIS OF PRESENTATION AND MAIN ACCOUNTING POLICIES

A) BASIS OF PRESENTATION