Banco Comercial Portugues

Quarterly Report • May 10, 2021

THE FUTURE IS NOW

1Q21 BANCO BPI CONSOLIDATED RESULTS

1 0 t h M A Y 2021

"DISCLAIMER"

• The purpose of this presentation is purely informative and should not be considered as a service or offer of any financial product, service or advice, nor should it be interpreted as, an offer to sell or exchange or acquire, or an invitation for offers to buy securities issued by Banco BPI ("BPI") or any of the companies mentioned herein. The information contained herein is subject to, and must be read in conjunction with, all other publicly available information. Any person at any time acquiring securities must do so only on the basis of such person's own judgment as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information set out in the relevant documentation filed by the issuer, having taken all such professional or other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in this presentation.
• BPI cautions that this presentation might contain forward-looking statements concerning the development of its business and economic performance. While these statements are based on BPI's current projections, judgments and future expectations concerning the development of the Bank's business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from BPI's expectations. Such factors include, but are not limited to the market general situation, macroeconomic factors, regulatory, political or government guidelines and trends, movements in domestic and international securities markets, currency exchange rates and interest rates, changes in the financial position, creditworthiness or solvency of BPI customers, debtors or counterparts.
• Statements as to historical performance or financial accretion are not intended to mean that future performance or future earnings for any period will necessarily match or exceed those of any prior year. Nothing in this presentation should be construed as a profit forecast. In addition, it should be noted that although this presentation has been prepared based on accounting registers kept by BPI and by the rest of the Group companies it may contain certain adjustments and reclassifications in order to harmonize the accounting principles and criteria followed by such companies with those followed by BPI.
• In particular, regarding the data provided by third parties, BPI does not guarantee that these contents are exact, accurate, comprehensive or complete, nor it is obliged to keep them updated, nor to correct them in the case that any deficiency, error or omission were to be detected. Moreover, in reproducing these contents by any means, BPI may introduce any changes it deems suitable, may omit partially or completely any of the elements of this document, and in case of any deviation between such a version and this one, BPI assumes no liability for any discrepancy.
• In relation to Alternative Performance Measures (APMs) as defined in the guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority on 5 October 2015 (ESMA/2015/1415), this report uses certain APMs, which have not been audited, for a better understanding of the company's financial performance. These measures are considered additional disclosures and in no case replace the financial information prepared under the International Financial Reporting Standards (IFRS). Moreover, the way the Group defines and calculates these measures may differ to the way similar measures are calculated by other companies. Accordingly, they may not be comparable. Please refer to the Glossary section for a list of the APMs used along with the relevant reconciliation between certain indicators.
• This document has not been submitted to the Comissão do Mercado of Valores Mobiliários (CMVM) (Autoridade Portuguesa do Mercado of Capitais) for review or for approval. Its content is regulated by the Portuguese law applicable at the date hereto, and it is not addressed to any person or any legal entity located in any other jurisdiction. For this reason it may not necessarily comply with the prevailing norms or legal requisites as required in other jurisdictions.
• Notwithstanding any legal requirements, or any limitations imposed by BPI which may be applicable, permission is hereby expressly refused for any type of use or exploitation of the content of this presentation, and for any use of the signs, trademarks and logotypes contained herein. This prohibition extends to any kind of reproduction, distribution, transmission to third parties, public communication or conversion by any other mean, for commercial purposes, without the previous express consent of BPI and/or other respective proprietary title holders. Any failure to observe this restriction may constitute a legal offence which may be sanctioned by the prevailing laws in such cases.

BPI IN 1ST QUARTER 2021

Permanent support to Families, Businesses and Society

Net income from the activity in Portugal of 54 M.€ (vs. 4 M.€ in 1Q20)

Consolidated net income of 60 M.€ (vs. 6 M.€ in 1Q20);

Strong commercial dynamism,

in a very adverse backdrop: loans grew by 6.2% YoY and total Customer resources by 9.7% YoY;

Gross income increased by 17.1% YoY,

net interest income up by 3.1%, shows notable resilience, and net fees and commissions up by 5.4%;

Digital transformation on track and improvement in Customer experience:

728 thousand digital clients, of which 479 thousand with BPI app (+ 59 th. YoY).

Strong economic and financial position:

NPE of 1.5%, with 154% coverage; CET1 capital of 14.4% and Total Capital of 17.6%; comfortable liquidity position, with loan-to-deposits ratio of 91%; investment grade ratings by the three main international agencies;

More social commitment, support to innovation and sustainable development

Support to society with the "la Caixa" Foundation: 30 M.€ planned investment for 2021; 250 th€ increase in BPI "la Caixa" awards, to a total of 4 M.€ in 2021; 1 M.€ allocated to the Decentralised Social Initiative, to support local social projects through the Commercial Networks.

BPI RESULTS IN 1ST QUARTER 2021

Net income in Portugal and consolidated	Net profit from the activity in Portugal of 54 M.€ in 1st quarter 2021 (vs. 4 M.€ in 1Q20)   Consolidated net profit of 60 M.€ in 1st quarter 2021 (vs. 6 M.€ in 1Q20)
Customer resources and loans	Total Customer resources increased 3.3 Bn.€ YoY (+9.7%); Deposits increased 11.1% YoY Loan portfolio increased 1.5 Bn.€ YoY (+6.2%) 
High asset quality	 Non-performing exposures ratio (NPE EBA) decreased to 1.5% in March 2021 NPE coverage by impairments and collateral increased to 154%   Cost of credit risk of -0.04% in 1st quarter 2021 (non annualised)
Strong capitalisation	Capital ratios (phasing-in): CET1 of 14.4%, T1 of 15.9% and total capital of 17.6%  Leverage ratio (phasing-in) of 7.3% 
BPI debt and deposits rated investment grade	 BPI senior debt: rated Baa3 by Moody's, BBB+ by Fitch and BBB by S&P  BPI deposits: rated Baa1 by Moody's and BBB+ by Fitch Ratings

CONSOLIDATED NET PROFIT OF 60 M.€ IN 1ST QUARTER 2021

Of which	 YoY
(2)  Commercial banking gross income	+7 M.€
Reduction in loan impairments 	+42 M.€
 Gains / (losses) on financial assets and liabilities and other operating income and expenses	+19 M.€
Costs reduction 	+3 M.€
 Income tax and other	-22 M.€

Activity in Portugal
	Mar 20	Mar 21
Recurrent ROTE (last 12 months)	7 1%	4 7%

(1) Early retirements and voluntary terminations

5

(2) Net interest income, fees and commissions, dividends and share of profits of associates (equity accounted).

6

LOAN PORTFOLIO GROWS 6.2% YoY

Loans to Customers by segments

Gross portfolio, in M.€	Dec 20	Mar 21	YtD	YoY
I. Loans to individuals	13 745	13 930	1.3%	5.6%
Mortgage loans	12 008	12 189	1.5%	5.8%
Other loans to individuals	1 737	1 741	0.2%	3.7%
II. Loans to companies	10 072	10 204	1.3%	7.2%
III. Public sector	1 879	1 897	1.0%	4.6%
Total loans	25 695	26 031	1.3%	6.2%
Note:
Loan portfolio net of impairments	25 208	25 550	1.4%	6.0%

Total loan portfolio grows 1.5 Bn.€ YoY
Mortgage loans increase 5.8% YoY (+0.7 Bn.€)
Loans to companies increase 7.2% YoY (+0.7 Bn.€)

SUPPORT TO FAMILIES AND COMPANIES

1) Corresponds to 31 March 2021 excluding moratoria than ended on the following day.

7

MORTGAGE LENDING ORIGINATION INCREASES 11% YoY

BPI, A BANK FOR COMPANIES

The partner for Companies and small businesses at the critical stages of their lives

Market share

10.3%

(Mar.21)

Support to the economic recovery of Companies and Small Businesses

Loans to companies ( YoY) +0.7 Bn.€ +7.2%

• New phase of accession to Legal Moratoria for Companies
• Extension of Grace Period - Lines with Mutual Guarantee
• Extension of exemption of POS terminal monthly fees
• Commerce Account pricing reduction maintained if POS terminal is deactivated

Processing of Covid-19 Lines of Support to the Economy

NEW SUPPORT LINES

• Industry and Tourism Exporters
• Event Staging

Travel Agencies

and Tour Operators

1 050 M.€ 50 M.€ 100 M.€

Launch of Seguro Vida Negócios from BPI Vida e Pensões

New corporate life insurance, for Companies, Individual Entrepreneurs and Independent Professionals

BPI, A BANK THAT SUPPORTS AGRICULTURE AND TOURISM

BPI continues to support companies in the agriculture and tourism sectors and to reward the most outstanding companies and projects

TOTAL CUSTOMER RESOURCES INCREASE 9.7% YoY

Deposits +11.1% YoY and Assets under management +9.5% YoY

Customer resources					Market shares
In M €	20 Dec	21 Mar	YtD	YoY
Customer deposits I	26 009	26 618	2 3%	1% 11
under II Assets management	9 644	9 805	7% 1	9 5%
Mutual funds	309 5	579 5	1% 5	21 7%
Capitalisation insurance	334 4	225 4	-2 5%	-3 3%
Public offerings III	336 1	281 1	-4 1%	-12 2%
Total	36 989	37 704	9% 1	9 7%

	21 Mar	YoY 
Deposits	10 7%	0 0 p.p.
Mutual funds	10 8%	-1 0 p.p.
Capitalisation insurance	3% 17	+1 2 p.p.
Retirement savings plans	11 4%	+0 5 p.p.

STRONG GROWTH OF CUSTOMER BASE, ESPECIALLY IN MOBILE

More Digital Clients (YoY) Mobile-focused growth

+ 59 000 77%

BPI App active users

70%

of sales are digitally initiated

Increase in Digital Channels interactions, leading to sales and subscription of products

More Digital Sales (QoQ)

Digital individual Clients use the BPI App

+13 p.p.

YoY

Higher proximity Increase in digital interactions
16 million Logins in March	71% of logins are mobile
+19% Logins  YoY	97% transactions made through digital channels 1)
	Digital channels penetration
#2 Individual Clients	"Net+Mobile" Penetration 2)
channels	Satisfaction with the digital
Global Satisfaction #2 2) Individual Clients

Higher proximity to the Clients and increase in digital sales

1) Transactions made through Net, Mobile or ATM 2) BASEF (Feb. 2021), main banks

INNOVATION AND TRANSFORMATION IN THE DIGITAL CHANNELS

Improved Customer Experience

Simplification of Daily Routines

• Increased support to Clients' financial management (My Finance) service
• Estimate of future account movements included in Budget Management
• Incentive to regular saving for "Major Expenses"
• Redesign of payment experience and increase in Credit Card ceiling
• Simplification of Customer Personal Data updating process
• Easier access to Digital Documentation
• Open Banking evolution in the framework of PSD2

Enjoying Life and Sleeping Peacefully

• Purchase of Life Insurance associated to Personal Loans on the Digital Channels
• Support to insurance financial management, with a new Simulator to define the Family Life Insurance capital sum
• Easier access to insurance, and more information about policies and reporting of Multi-risk/Home Insurance claims
• Instant Loan contracting experience improved and simplified
• Extension of BPI Drive solution to new commercial partners

New digital solutions for Companies

• Simplification of Customer contact with the Commercial Networks, and possibility to contract more services through the 'Contact with Account Manager'
• Reactivation of Moratorium request functionality through BPI Net Empresas

GROSS INCOME INCREASES 17.1%

Commercial banking gross income increases 3.8%

OPERATING EXPENSES DECREASE 3.0%

CORE COST-TO-INCOME IMPROVES TO 57.1%

Core cost-to-income

(Recurring operating expenses as % of commercial banking gross income)

REGULATORY COSTS OF 22.4 M€ IN 1ST QUARTER 2021

COST OF CREDIT RISK AT -0.04% IN 1Q 2021

18

BPI MAINTAINS LOW RISK PROFILE AND INCREASES COVERAGE

	Mar.21
NPL ratio (EBA criteria)	1.8%
Non-Performing Loans (NPL)	554 M.€
NPL coverage by impairments and collaterals	153%
Foreclosed properties (net book value)	6 M.€
Corporate recovery and restructuring funds (book value)

EMPLOYEE PENSION LIABILITIES

M €	Dec 20	Mar 21
Total liability service past	1 907	1 806
of the funds Net assets pension	(1) 873 1	899 1
Level of of pension liabilities coverage	98%	105%
Pension fund return (YtD annualised) , non	2 7%	2 1%
Discount rate	1 01%	1 30%

Actuarial deviations (M €)	1Q 21
from portfolio Income investment	33
Change in the discount rate	94
Actuarial deviations	126

BPI MAINTAINS HIGH CAPITALISATION

21

BALANCED FUNDING STRUCTURE AND COMFORTABLE LIQUIDITY POSITION

1) Regulatory minimum from June 2021.

22

2) 12-month average, in accordance with the EBA guidelines. Average value (previous 12 months) of the calculation components: Liquidity reserves (8 930 M.€); Total net outflows (3 209 M.€).

3) High Quality Liquid Assets (HQLA) of 10.2 Bn.€ and other assets eligible as collateral with ECB of 0.8 Bn.€

BPI, A BANK THAT SUPPORTS INNOVATION AND SUSTAINABILITY

23

BPI'S QUALITY, INNOVATION AND DEDICATION TO ITS CLIENTS CONTINUE TO BE DISTINGUISHED

SUPPORT TO SOCIETY

Joint Action BPI and "la Caixa" Foundation

5 BPI "la Caixa" Foundation Awards to improve the quality of life of people in situations of social vulnerability

250 th€ increase relative to 2020

• 4 M.€ in 2021
• Capacitar closed applications
• Solidary closed applications
• Seniors from 13/4 to 10/5
• Childhood from 11/5 to 7/6
• Rural from 8/6 to 5/7

Decentralised Social Initiative to

support local social projects through the Commercial Network

1Q21 Results

• 83 projects
• 554 th€
• 20 161 beneficiaries

Volunteering

Launch and implementation of various voluntary work initiatives, from financial literacy and entrepreneurship in schools, to capacity building of institutions, and care for the elderly living alone

1st month results

• +70 people enrolled in initiatives
• +500 people registered with the Volunteering platform

Portugal Social Reckoning 2020

Nova SBE, the "la Caixa" Foundation and BPI launched the report "Portugal, Social Reckoning 2020 - A portrait of the country and the effects of the pandemic", by Susana Peralta, Bruno P. Carvalho and Mariana Esteves, under the aegis of the Initiative for Social Equity

SOCIAL COMMITMENT 30 M.€ TO SUPPORT SOCIETY IN 2021

"la Caixa" Foundation initiative with the collaboration of BPI

Social Programmes

• Humaniza Programme
• Incorpora Programme
• Proinfância Programme
• Seniors Always with Company Programme
• Promove Programme
• BPI "la Caixa" Foundation Awards
• Volunteer Evaluators of the BPI "la Caixa" Foundation Awards
• CooperantesCaixa Voluntary service
• Decentralised Social Initiative
• Partis & Art for Change
• Social Science Research
• Social Equity Initiative-Nova SBE
• Global Platform for Syrian Students

Culture and Science

• Creactivity and Itinerant Exhibitions, Participative and School Concerts
• Support to Creation Programme
• Serralves Foundation
• Casa da Música
• Museu Nacional de Arte Antiga
• Porto University Museum of Natural History and Science
• Coimbra University Science Museum / Cabinet of Curiosities
• Casa da Arquitetura
• Casa de São Roque
• Elvas Contemporary Art Museum
• Caramulo Museum
• Teatro Nacional D. Maria II
• Teatro Nacional S. João
• Espaço do Tempo
• Orquestra XXI
• Orquestra Sem Fronteiras
• Matosinhos Jazz Orchestra

Research and Health

• Health Research
• CaixaImpulse

Education and scholarships

• Post-graduation scholarships
• PhD and post-doctoral fellowships for outstanding researchers
• Young Entrepreneur Programme

HIGHLIGHTS OF 1ST QUARTER 2021 RESULTS

Strong commercial dynamism, despite the adverse economic backdrop

High capitalisation, low risk profile and comfortable liquidity position

Gross income growth and efficiency improvement

Reinforcement of social commitment under joint intervention with "la Caixa" Foundation

Digital transformation and innovation on track

BPI will continue to be a partner for families and companies and to support the recovery of the Portuguese economy

BPI RESULTS IN 1ST QUARTER 2021

Commercial activity in Portugal	Loan Portfolio +1.5 Bn.€ +6.2% YoY 	Customer resources +3.3 Bn.€ +9.7%  YoY	Net Interest +3.1% Income +5.4% Fee and commission  YoY income	Digital Banking Regular users 728 th BPI app users + 59 th  YoY
Risk and capitalisation	NPE ratio (EBA) 1.5%	NPE coverage 154% (by impairments and collaterals)	Cost of Risk -0.04% (as % of loans and guarantees; non- annualised)	14.4% CET1 15.9% T1 17.6% Total (Phasing-in)
Net income and profitability	Net profit in Portugal 54 M.€	Recurring ROTE in Portugal 4.7% (last 12 months)	Cost-to-income in Portugal 57.1% (last 12 months)	Consolidated net profit 60 M.€

CONSOLIDATED RESULTS

Unaudited accounts

ANNEXES

01 BPI Ratings versus peers

Income Statements and Balance sheet in accordance with IAS / IFRS and consolidated indicators

03

02

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

04

Alternative Performance Measures

At 30 April 2021

BPI RATINGS VS. PEERS

	(Long Term Debt/ Issuer Credit Rating)	(Long Term Debt/ Issuer rating)	(Issuer Default Rating)	(Long-Term Debt/ Issuer Rating)
t n e e m d	…AA, AA+ and AAA	…Aa2, Aa1, and Aaa	…AA, AA+ and AAA	…AA, AA (high), AAA
	AA-	Aa3 Mortgage bonds	AA	Mortgage bonds AA (low)
	A+	A1	A+	A (high)
	A	A2	A	Bank 1 A
st a r e G	A	A3	A	A (low)
v n I	BBB+	Baa1 Deposits	Deposits Bank 1 BBB+ Senior debt	BBB (high)
	Bank 1 BBB	Baa2	BBB	Bank 3 BBB
	BBB	Bank 1 Baa3	BBB	Bank 2 BBB (low)
	BB+	Bank 2 Bank 3 Ba1	Bank 3 BB+	BB (high)
t n	Bank 2 BB	Ba2	Bank 2 BB	BB
e m	BB	Ba3	BB	BB (low)
st e d e	B+	B1	B+	Bank 5 B (high)
a v r n g	B	B2	B	Bank 4 B
I - n	B	B3	Bank 4 B	B (low)
o N	CCC+	Bank 4 Caa1	CCC+	CCC (high)
	CCC	Bank 5 Caa2	CCC	CCC

S&P (20 out.20) reaffirmed BPI and its long term senior debt rating of BBB, with Stable outlook.

Moody's (11 mar.20) upgraded BPI and its long term senior debt rating from Ba1 to Baa3 and reaffirmed its LT deposits rating at Baa1. The ratings outlook is Stable.

Fitch (19 out.20) reaffirmed BPI's LT senior debt and LT deposits ratings of BBB+ and BPI rating of BBB, with Negative outlook.

INCOME STATEMENT OF THE ACTIVITY IN PORTUGAL

€ In M	Mar 20	Mar 21	%
Net interest income	109 9	113 2	3 1%
Dividend income	0 0	0 0	-
accounted Equity income	5 8	5 9	2 5%
fee and Net commission income	60 4	63 7	4% 5
Gains/(losses) financial and liabilities and other assets on	-14 4	8 9	162 0%
Other and operating income expenses	-9 3	-13 3	-43 0%
Gross income	152 4	178 5	1% 17
Recurrent staff expenses	-62 0	-59 1	-4 6%
Other administrative expenses	-35 7	-36 4	1 9%
and Depreciation amortisation	3 -15	-14 1	-8 2%
Operating expenses	-113 0	-109 6	-3 0%
operating income Net	39 4	68 9	74 8%
losses and other Impairment provisions	-32 0	9 6	-
Gains and losses in other assets	0 3	0 3	-4 2%
income before income Net tax	7 8	78 8	-
Income tax	-3 4	8 -24	-
income Net	4 4	53 9	-

BALANCE SHEET OF THE ACTIVITY IN PORTUGAL

31 Mar. 2021

1) Includes short-term public debt of 0.15 Bn.€ (Portugal), with a residual average maturity of 0.3 years, and medium and long-term of 4.4 Bn.€ (Portugal 54%; Spain 30% and Italy 16%), with an average residual maturity of 2.4 years.

CONSOLIDATED INCOME STATEMENTS

In M €	20 Mar	21 Mar
interest income Net	109 9	113 2
Dividend income	0 0	0 0
Equity accounted income	9 1	11 7
fee and commission income Net	60 4	63 7
Gains/(losses) financial and liabilities and other assets on	-16 0	10 1
Other operating income and expenses	-9 3	-13 3
Gross income	2 154	185 5
Staff expenses	-62 0	-59 1
Other administrative expenses	-35 7	-36 4
Depreciation and amortisation	-15 3	-14 1
Operating expenses	-113 0	-109 6
operating income Net	41 1	9 75
Impairment losses and other provisions	-32 0	9 6
Gains and losses in other assets	0 3	0 3
income before income Net tax	9 5	85 8
Income tax	-3 2	-25 6
income Net	6 3	60 1
EARNINGS PER SHARE	Mar 20	Mar 21
share (€) Earnings per	0 00	0 04
weighted of shares (in millions) Average nr.	1 456 9	1 456 9

CONSOLIDATED BALANCE SHEET

In M.€	20 Dec	21 Mar
ASSETS
Cash and cash balances central banks and other demand deposits at	4 535 2	5 143 9
Financial held for trading fair value through profit or loss and fair assets , at at value through other comprehensive income	2 258 5	2 258 3
Financial amortised assets at cost Customers Loans to	30 004 0 25 207 8	30 3 515 25 550 1
Investments in joint and associates ventures Tangible assets	238 2 152 9	249 0 144 2
Intangible assets Tax assets	87 0 271 0	86 9 245 6
and disposal groups classified as held for sale Non-current assets Other assets	7 9 231 0	6 7 315 4
Total assets	37 785.6	38 965.3
LIABILITIES Financial liabilities held for trading Financial liabilities amortised at cost - Central Banks and Credit Deposits Institutions Deposits - Customers Debt issued securities Memorandum subordinated liabilities items: Other financial liabilities Provisions Tax liabilities Other liabilities	141 3 33 695 7 5 504 3 26 008 6 1 804 9 304 3 378 0 48 7 23 2 620 3	136 2 34 725 4 5 941 3 26 625 3 1 797 1 300 3 361 7 49 7 22 6 533 5
Total Liabilities	34 529.3	35 467.4
Shareholders' attributable the shareholders of equity BPI to controlling Non interests	3 256 3 0 0	3 497 9 0 0
Total Shareholders' equity	3 256.3	3 497.9
Total liabilities and Shareholders' equity	37 785.6	38 965.3

CONSOLIDATED INDICATORS

Profitability Efficiency and Liquidity Indicators , (Bank of Portugal Instruction no. 16/2004 with the amendments of Instruction 6/2018)	20 Mar	21 Mar
Gross / income ATA	9% 1	9% 1
before and attributable non-controlling / Net income income tax income to interests ATA	0 1%	0 9%
income before income and income attributable non-controlling interests / Net tax to shareholders' (including non-controlling interests) equity average	1% 1	10 3%
income 1) Staff / Gross expenses	40 2%	31 9%
income 1) / Operating Gross expenses	73 3%	59 1%
(net) deposits Loans ratio to	101%	96%
NPE ratio and forborne (according the criteria) to EBA	Mar 20	Mar 21
Non-performing (M €) - NPE exposures	771	567
NPE ratio	2 3%	1 5%
by NPE impairments cover	57%	88%
by and collaterals NPE impairments cover	125%	154%
NPE 2) of forborne included Ratio not in	0 5%	0 4%
"Crédito (non-performing duvidoso" loans) (according Bank of Spain criteria) to	20 Mar	21 Mar
€) 3) "Crédito duvidoso" (M	781	610
"Crédito duvidoso" ratio	3 0%	2 2%
"Crédito duvidoso" by impairments cover	57%	82%
"Crédito duvidoso" by impairments and collaterals cover	117%	142%

35 2) Forborne according to EBA criteria and considering the scope of prudential supervision. On mar.21, the forborne was 420.9 M.€ (forborne ratio of 1.0%), of which 175.5 M.€ was performing loans (0.4% of the gross credit exposure) and 245.4 M.€ was included in NPE (0.6% of the gross credit exposure).

3) Includes guarantees provided (recorded off-balance sheet).

¹⁾ Excluding early-retirement costs.

RECONCILIATION BETWEEN BPI REPORTED FIGURES AND BPI SEGMENT CONTRIBUTION TO CAIXABANK GROUP

Proft & loss account
Mar 21 (M.€)	reported As by BPI	Adjustments 1 )	contribution BPI CABK Group to	BPI segment	Equity investments and other segment
Net interest income	113	( 2)	111	111
Dividends
Equity accounted income	12		12	6	6
fees and Net commissions	64		64	64
Trading income	10		10	9	1
Other operating income & expenses	( 13)		( 13)	( 13)
income Gross	185	( 2)	183	177	6
Recurrent operating expenses	( 110)	( 3)	( 113)	( 113)
Extraordinary operating expenses
Pre-impairment income	76	( 6)	70	64	6
[Pre-impairment income without extraordinary expenses]	76	( 6)	70	64	6
losses on financial Impairment assets	10	5	15	15
Other impairments and provisions	( 1)		( 1)	( 1)
Gains/losses on disposals others &
income Pre-tax	86	( 1)	85	78	6
Income tax	( 26)	5	( 21)	( 20)	( 1)
Profit for the period	60	3	63	58	5
Minority interests & other
income Net	60	3	63	58	5

Loan portfolio & customer funds

March 21 (M.€)	reported by As BPI	Adjustments	contribution BPI to (BPI segment) CABK Group
Loans and advances to customers, net	25 550	( 68)	25 482
Total funds customer	37 704	(4 278)	33 426

Profit & and loss account

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

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

Loan portfolio & customer funds

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

• In loans and advances to customers, net, by the associated fair value adjustments generated by the business combination at 31 March 2021 and consolidation adjustments (elimination of intra-group balances: BPI credit to CaixaBank Payments);
• In total customer funds, by the liabilities under insurance contracts and their fair value adjustments at 31 March 2021, as generated by the business combination, which have been reported in the banking and insurance business segment of CaixaBank following the sale of BPI Vida to VidaCaixa de Seguros y Reaseguros.

1) Consolidation, standardisation and net fair value adjustments in the business combination.

Reconciliation of the profit & loss account structure

• The European Securities and Markets Authority (ESMA) published on 5 October 2015 a set of guidelines relating to the disclosure of Alternative Performance Measures by entities (ESMA/2015/1415). These guidelines are to be obligatory applied with effect from 3 July 2016.
• In addition to the financial information prepared in accordance with the International Financial Reporting Standards (IFRS), BPI uses a set of indicators for the analysis of performance and financial position, which are classified as Alternative Performance Measures, in accordance with the abovementioned ESMA guidelines. The information relating to those indicators has already been the object of disclosure, as required by ESMA guidelines.
• In the current presentation, the information previously disclosed is inserted by way of cross-reference and a summarized list of the Alternative Performance Measures is presented next.

The following table shows, for the consolidated profit & loss account, the reconciliation of the structure used in this document (Results' Presentation) with the structure adopted in the financial statements and respective notes of the Report and Accounts.

	Adopted acronyms and designations	Units, conventional sings and abbreviations
YtD	Year-to-date change		€, Euros, EUR		euros
YoY	Year-on-year change		th.€, th.euros		thousand euros
QoQ	quarter-on-quarter change		M.€, M.euros		million euros
ECB	European Central Bank		Bn.€, Bi.€		billion euros
BoP	Bank of Portugal				change
CMVM	Securities Market Commission		n.a.		not available
APM	Alternative Performance Measures		0, –		null or irrelevant
MMI	Interbank Money Market		vs.		versus
T1	Tier 1		b.p.		basis points
CET1	Common Equity Tier 1		p.p.		percentage points
RWA	Risk weighted assets		E		Estimate
TLTRO	Targeted longer-term refinancing operations		F		Forecast
LCR	Liquidity coverage ratio
NSFR	Net stable funding ratio

Reconciliation of the consolidated profit & loss account structure

used in the Results' Presentation Structure	Mar 21	Mar 21	presented in the financial statements and respective Structure notes
Net interest income	113.2	113.2	Net interest income
Dividend income	0.0	0.0	Dividend income
Equity accounted income	11.7	11.7	Share of the profit or (-) loss of investments in subsidiaries, joint ventures and associates accounted for using the equity method
fee Net and commission income	63.7	68.4	Fee and commission income
		-4.7	and Fee commission expenses
Gains/(losses) on financial assets and liabilities and other	10.1	0.0	Gains or (-) losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net
		1.3	or (-) losses on financial assets and liabilities held for trading, Gains net
		4.5	Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net
		0.3	from Gains or (-) losses hedge accounting, net
		4.0	Exchange differences [gain or (-) loss], net
Other operating income and expenses	-13.3	13.0	Other operating income
		-26.3	Other operating expenses
Gross income	185.5	185.5	GROSS INCOME
Staff expenses	-59.1	-59.1	Staff expenses
Other administrative expenses	-36.4	-36.4	Other administrative expenses
Depreciation and amortisation	-14.1	-14.1	Depreciation
Operating expenses	-109.6	-109.6	Administrative expenses and depreciation
Net operating income	75.9	75.9
Impairment losses and other provisions	9.6	-1.5	of Provisions or (-) reversal provisions
		11.1	or (-) reversal of on financial assets not measured at fair value through profit or loss Impairment impairment
Gains and losses in other assets	0.3		Impairment or (-) reversal of impairment of investments in subsidiaries, joint ventures and associates
			or (-) reversal of on non-financial Impairment impairment assets
		0.0	Gains or (-) losses on derecognition of non financial assets, net
		0.3	Profit or (-) loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations
Net income before income tax	85.8	85.8	PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS
Income tax	-25.6	-25.6	related to profit or loss from Tax expense or income continuing operations
Net income from continuing operations	60.1	60.1	PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS
from Net income discontinued operations			Profit after tax from or (-) loss discontinued operations
attributable to non-controlling Income interests			Profit or (-) loss for the period attributable to non-controlling interests
Net income	60.1	60.1	PROFIT OR (-) LOSS FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF THE PARENT

EARNINGS, EFFICIENCY AND PROFITABILITY INDICATORS	The following earnings, efficiency and profitability indicators are defined by reference to the above structure of the profit and loss account used in this document.
Gross income	Net interest income + Dividend income + Net fee and commission income + Equity accounted income + Gains/(losses) on financial assets and liabilities and other + Other operating income and expenses
Commercial banking gross income	Net interest income + Dividend income + Net fee and commission income + Equity accounted income excluding the contribution of stakes in African banks
Operating expenses	Staff expenses + Other administrative expenses + Depreciation and amortisation
Net operating income	Gross income – Operating expenses
Net income before income tax	Net operating income – Impairment losses and other provisions + Gains and losses in other assets
Cost-to-income ratio (efficiency ratio)	1) Operating expenses / Gross income
Core cost-to-income ratio (core efficiency ratio)1)	Operating expenses, excluding costs with early-retirements and voluntary terminations and (only in 2016) gains with the revision of the Collective Labour Agreement (ACT) – Income from services rendered to CaixaBank Group (recorded under Other operating income and expenses) / Commercial banking gross income
Return on Equity (ROE)1)	Net income for the period, less the interest cost of AT1 capital instruments recorded directly in shareholders' equity / Average value in the period of shareholders' equity attributable to BPI shareholders, excluding AT1 capital instruments
1) Return on Tangible Equity (ROTE)	Net income for the period, less the interest cost of AT1 capital instruments recorded directly in shareholders' equity / Average value in the period of shareholders' equity attributable to BPI shareholders (excl. AT1 capital instruments) after deduction of intangible net assets and goodwill of equity holdings
Return on Assets (ROA)1)	(Net income attributable to BPI shareholders + Income attributable to non-controlling interests - preference shares dividends paid) / Average value in the period of net total assets
Unitary intermediation margin	Loan portfolio average interest rate, excluding loans to employees – Deposits average interest rate
BALANCE SHEET AND FUNDING INDICATORS
On-balance sheet Customer resources2)	Deposits + Capitalisation insurance of fully consolidated subsidiaries + Participating units in consolidated mutual funds  Deposits = Demand deposits and other + Term and savings deposits + Interest payable + Retail bonds (Fixed rate bonds placed with Customers)  Capitalisation insurance of fully consolidated subsidiaries (BPI Vida e Pensões sold on Dec.17)
Assets under management3)	Mutual funds + Capitalisation insurance + Pension plans  Mutual funds = Unit trust funds + Real estate investment funds + Retirement-savings and equity-savings plans (PPR and PPA) + Hedge funds + Assets from the funds under BPI Suisse management + Third-party unit trust funds placed with Customers.  Capitalisation insurance4) = Third-party capitalisation insurance placed with Customers  Pension plans4) = Pension plans under BPI management (includes BPI pension plans)
Subscriptions in public offerings	Customers subscriptions in third parties' public offerings

(1) Ratio referring to the last 12 months, except when indicated otherwise. The ratio can be computed for the cumulative period since the beginning of the year, in annualised terms.

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

39

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

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

BALANCE SHEET AND FUNDING INDICATORS (continuation)
Total Customer resources	On-balance sheet Customer resources + Assets under management + Subscriptions in public offerings
Gross loans to customers	Gross loans and advances to Customers (financial assets at amortised cost), excluding other assets (guarantee accounts and others) and reverse repos + Gross debt securities issued by Customers (financial assets at amortised cost) Note: gross loans = performing loans + loans in arrears + receivable interests
Net loans to Customers	Gross loans to Customers – Impairments for loans to Customers
Loan-to-deposit ratio (CaixaBank criteria)	(Net loans to Customers - Funding obtained from the EIB, which is used to provide credit) / Deposits and retail bonds
ASSET QUALITY INDICATORS
Impairments and provisions for loans and guarantees (income statement)	Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss relative to loans and advances to Customers and to debt securities issued by Customers (financial assets at amortised cost), before deduction of recoveries of loans previously written off from assets, interest and others + Provisions or reversal of provisions for commitments and guarantees
Cost of credit risk	Impairments and provisions for loans and guarantees - Recoveries of loans previously written off from assets, interest and other
Cost of credit risk as % of loan portfolio1)	(Impairments and provisions for loans and guarantees - Recoveries of loans previously written off from assets, interest and other) / Average value in the period of the gross loans and guarantees portfolio.
Performing loans portfolio	Gross Customer loans - (Overdue loans and interest + Receivable interests and other)
NPE Ratio	Ratio of non-performing exposures (NPE) in accordance with the EBA criteria (prudential perimeter)
Coverage of NPE	[Impairments for loans and advances to Customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments] / Non-performing exposures (NPE)
Coverage of NPE by impairments and associated collaterals	[Impairments for loans and advances to Customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments + Collaterals associated to NPE] / Non-performing exposures (NPE)
Non-performing loans ratio ("credito dudoso", Bank of Spain criteria)	Non performing loans ("credito dudoso", Bank of Spain criteria) / (Gross Customer loans + guarantees)
Non-performing loans coverage ratio	[Impairments for loans and advances to Customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments] / Non performing loans ("credito dudoso", Bank of Spain criteria)
Coverage of non-performing loans by impairments and associated collaterals	[Impairments for loans and advances to Customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments + Collateral associated to credit] / Non performing loans ("credito dudoso", Bank of Spain criteria)
Impairments cover of foreclosed properties	Impairments for real estate received in settlement of defaulting loans / Gross value of real estate received in settlement of defaulting loans

BANCO BPI, S.A. Registered office: Rua Tenente Valadim, 284, Porto Share capital: € 1 293 063 324.98 Registered at Commercial Registry of Porto under registration number PTIRNMJ 501 214 534 and tax identification number 501 214 534