Banco BPI Consolidated results in 2015

Transcription

1 Banco BPI Consolidated results in January 2016

2 BPI consolidated results in 2015 (Consolidated figures and Y-oY changes, except indicated otherwise) Consolidated net profit of M. ; ROE of 10.4%; Consolidated net profit of 93.1 M. in domestic activity; ROE of 5.2%; Net interest income increases by 29.0%; Commissions increase by 4.0%; Net operating revenue increases by 37.8%; Consolidated costs increase by 3.9%, while in the domestic activity decrease by 1.3%; Consolidated cost-to-income ratio improves from 61.6% in 2014 to 56.2% in 2015; Cost of credit risk decreases from 0.70% to 0.48%; Credit at risk ratio of 4.6%; impairments coverage of 87% (not considering collaterals); Total customer resources increase by 2.9% (+0.8 Bi. ) in the domestic activity (0.8% in consolidated terms); Transformation ratio of deposits into loans of 85%; Common Equity Tier 1 ratio CRD IV / CRR: Phasing-in: 11.1%; Fully Implemented: 10.0%. 2

3 Background 31 Dec Dec Dec. 15 June 25 BPI fully repays CoCo, 3 years before the deadline August 3 Resolution of Banco Espírito Santo and creation of Novo Banco with a capital contribution of 4.9 Bi. from the Resolution Fund December 16 BPI informs about loss of supervisory equivalence status of the Republic of Angola BPI announces expression of interest in the acquisition of Novo Banco February 17 Caixabank, holder of 44% of BPI s share capital, announces the launch of a tender offer over the remaining capital March 20 BPI presents a proposal for buying Novo Banco April 18 BPI informs it has been notified by the Bank of Portugal that its proposal has not been selected for the 3rd phase of the sale of Novo Banco June 18 Caixabank informs about the withdrawal of the tender offer over BPI December 20 BANIF resolution December 29 Transfer to Novo Banco from BES of 2 Bi. of bonds $ Brent (US$/b) $57.33 $

4 I. Capital II. Consolidated results III. Domestic activity IV. International activity V. Public recognition VI. Social responsibility

5 Common Equity Tier 1 ratio Phasing in Consolidated 31 Dec.15 Consolidated Domestic activity International activity CET Bi. 1.7 Bi. 0.9 Bi. RWA 23.3 Bi Bi. 8.1Bi. CET1 ratio Rules % 11.3% 10.6% CET1 ratio Rules % 11.0% 10.8% 5

6 Common Equity Tier 1 ratio fully implemented Consolidated 31 Dec.15 CET 1 fully implemented Consolidated 2.3 Bi. Domestic activity 1.6 Bi. International activity 0.8 Bi. BFA local rules RWA 23.2 Bi Bi. 8.0 Bi. CET 1 ratio fully implemented 10.0% 10.2% 9.5% 24% 6

7 Leverage and liquidity ratios (CRD IV / CRR) Consolidated Dec. 15 Considering CET 1 phasing in rules Dec. 15 Considering CET 1 fully implemented rules Leverage 6.9% 6.4% Liquidity Liquidity coverage ratio (LCR) Net stable funding ratio (NSFR) 113% 104% 113% 104% 7

8 I. Capital II. Consolidated results III. Domestic activity IV. International activity V. Public recognition VI. Social responsibility

9 Consolidated net profit of M.. Consolidated M. NET PROFIT Consolidated International activity Domestic activity

10 Net profit Consolidated M. NET PROFIT Note: In December 2008 the sale of 49.9% of BFA was concluded, so from this date onwards the contribution of BFA to the consolidated results corresponds to the appropriation of 50.1% of its individual profit. 10

11 Consolidated net profit of 85.4 M. in the 4 th quarter NET PROFIT Consolidated M Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1T14 2T14 3T14 4T14 1T15 2T15 3T15 4T15 11

12 Efficiency ratio Consolidated OPERATING COSTS 1 / NET OPERATING REVENUE Excluding non recurring impacts 66.3% 66.7% 69.4% 2) 65.3% 64.4% 2) 62.6% 62.5% 62.1% 57.7% 60.0% 57.9% 56.6%53.7% 2) 61.6% 2) 56.2% ) Operating costs (personnel costs + outside supplies and services + depreciation and amortisation), excluding early-retirement costs and gains due to the amendment to the terms of the pension plan (death subsidy) by Decree Law 133/2012 and Decree Law 13/2013, as % of operating income. 2) Excluding non-recurring impacts both in costs and revenues. 12

13 ROE by business area Consolidated RETURN ON EQUITY (ROE) Domestic activity 2014 International activity Consolidated Domestic activity 2015 International activity Consolidated Capital allocated adjusted As % of total 82.8% 17.2% 100.0% 79.2% 20.8% 100.0% Net income ( 289.7) ( 163.6) ROE -15.6% 32.7% -7.3% 5.2% 30.5% 10.4% 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. 13

14 Balance sheet indicators Consolidated M. Dec.14 Dec.15 % Total assets % Gross loans and guarantees % Deposits % Loans-to-Deposit ratio 84% 85% On-balance sheet customer resources % Total Customer Resources % Shareholders' Equity and minority interests % Note: The international figures were especially affected by the depreciation of the Kwanza (AKZ) against the Euro (EUR). 14

15 I. Capital II. Consolidated results III. Domestic activity IV. International activity V. Public recognition VI. Social responsibility

16 Net profit of 93.1 M. NET PROFIT Domestic activity As reported Nonrecurrent Adjusted As reported

17 Net profit M. NET PROFIT Domestic activity

18 Net profit of 54.2 M. in 4 th quarter NET PROFIT Domestic activity T14 2T14 3T14 4T14 1T15 2T15 3T15 4T15 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Adjusted income (excl. non recurring) As reported 18

19 Commercial results in 2015 Domestic activity Customers Resources Loans Risk Network Quality Net growth of 24 thousand Customers Increase in resources market share to 9.7% (without securities, with IGCP). Reduction of funding costs: average rate in the term deposits portfolio fell 64 bp. Increase of diversification: BPI rises from 5th to 3rd place in capitalization insurance, funds and structured products (Nov.15). Increase in Loans to Individuals and Companies. Rise in the number of companies indicating BPI as the main Bank (19.4%, according to the study Data E 2015, +2.3 pp yoy). BPI maintains leadership in PME Leader status (28%) and PME Excelência (40%) and in no. of operations in the PME Crescimento 2015 line. Strengthening of BPI position as the Agricultural Bank, with increase in loans to customers of the Agricultural Sector and change of 142% in number of applications for the Agriculture Prize (420 in 2014 and 1017 in 2015). BPI is no. 1 in cumulative production of Agrogarante (139 M since the beginning of the activity) and No. 2 in the amount of 2015 (24 M ). Maintenance of the credit at risk ratio at less-than-half the market level. Optimization of the commercial network: Closing of 51 branches in Historical maximum in Quality of Service Index IQS branch (2nd quarter 2015) 19

20 Commercial results in 2015 Market shares Domestic activity BPI increased in 2015 its market shares in several business areas; worth mentioning: Individuals Residents: 9.0% in Resources (+ 0.7pp), 9.7% in Lending (+ 0.1pp); Companies: 11.5% in Deposits (+ 0.9pp), 6.7% in Lending (+ 0.4pp). As regards the Individuals business segment, worth mentioning: BPI's market share in Funds, Capitalisation insurance and savings plans reached 15.8%, the highest since Dec. 03, with BPI moving up from 5th to 3rd place (surpassing Novo Banco % and Santander Totta - 8.8%). BPI market shares gains in Mortgage and in Consumer credit and credit for other purposes, reaching 9.7% in November. As regards the Companies and Businesses, it was recorded: Market share increase in credit to non-financial companies (6.7% in November). For this improvement it should be highlighted the contributions from the Small Businesses segment (commercial credit and leasing with +17.3%) and from Medium-sized Companies (credit plus guarantees with + 7.9%) in Rise in the number of companies indicating BPI as the main Bank (19.4% of companies, according to the Data E 2015 study, +2.3 pp relative to previous year). 20

21 Commercial results Resources* Domestic activity Increase in resources market share to 9.8%, in a difficult background: Global market stabilising; Decrease in term deposits interest rates, with BPI remuneration offer below the average market level; Branch network reduction. 15.8% market share in Funds, Insurance Capitalisation and Savings Plans (3rd place) DEPOSITS + FUNDS + INSURANCE CAPIT. + PPR S + SAVING / TREASURY CERTIFICATES % 8.33% 8.61% 7.83% 7.74% 5.98% 6.22% 4.78% 4.26% 4.57% Dec.10 Dec.11 Dec.12 Dec.13 Dec % 7.25% Nov.15 Market - resources without securites (Bi. )* BPI market share IGCP market share Sources: BBPI, Bank of Portugal, IGCP, APS Ass. Portuguesa de Seguradores, APFIPP Ass. Portuguesa de Fundos de Investimento, Pensões e Patrimónios. (Note: In intra-annual evolutions of PPR s and Insurance Capitalisation, estimates were considered for the weight of the Institutions outside the Top 5). It were not considered: Offshore sight and term deposits (excluding Madeira and Azores), Term Deposits of OIFAF Resident for more than 2 years (considered associated to securitisation operations), Foreign Funds, BPI Bonds, Structured Products and Securities. In Market figures the Saving and Treasury Certificates issued by the IGCP were included. 21 * Without securities.

22 Commercial results Loans to individuals Domestic activity BPI has gained market share in the Mortgage Loans and Consumer and other purposes Loans portfolio Compared to 2014, the new credit rose in 2015: + 88% in Mortgage Loans + 45% in Personal Loans + 23% in Car Financing Highlight for the Mortgage Loans with new loans of 85 M. in the month of Dec.15, the best figure since Sep MORTGAGE LOANS (STOCK) LOANS TO CONSUMER AND OTHER PURPOSES (stock) (includes loans to individuals and PCL) % 10.1%10.3%10.2%10.3%10.4%10.5%10.6% % 6.2% 6.1% 5.7% 5.5% 5.4% 5.1% 5.4% Dez.08 Dec.08 Dez.09 Dec.09 Dez.10 Dec.10 Dez.11 Dec.11 Dez.12 Dec.12 Dez.13 Dec.13 Dez.14 Dec.14 Nov.15 Source: BoP (includes securitised loans). Dec.08 Dez.08 Dec.09 Dez.09 Dec.10 Dez.10 Dec.11 Dez.11 Dec.12 Dez.12 Dec.13 Dez.13 Dec.14 Dez.14 Nov.15 Market (Bi. ) BPI 22

23 Commercial results Positioning of companies Domestic activity BPI in Companies and Business market (DATA E): No. 1: Globally best for Companies No. 1: most suitable products for Companies Maintenance of the 2nd place as the Main Bank, with a market share of 19.4% in 2015 vs 17.1% in 2014 (market share in # companies) PME Crescimento 2015: No. 1 in no. of operations; No. 3 in the amount Leadership in the accumulated PME Crescimento lines (19% market share) Change of 142% in the number of applications for the Agriculture Prize (420 in 2014 vs. 1,017 in 2015). BPI Bank of Agriculture, with increase in loans to customers of the Agricultural Sector: No. 1 CAP Protocol: financed amount in subsidies to the exploration No. 1 IFAP CP line: total amount of campaign loans No. 1 Agrogarante: cumulative production since the beginning of Agrogarante activity; No. 2 by amount in 2015 BPI strengthened its position as a major mediator of COSEC. In the production of the year until November, BPI's market share in terms of number of policies rose to 53% in the risk policies and 68% in the Line outside OECD. LINHA BEI SMEs IV 23

24 Commercial results Commissions Domestic activity Total amount of Comissions improves: +7.9 M. in the Commissions with Sight Deposits and related services; Commissions (M ) +2.0 M. in the cumulative of the year until Dec. (+5,0%) in the commissions of Allianz insurance, which contributed with 41.3 M. to the operating revenue of BPI. In the stand-alone insurance, comissions grew 0.9 M (+8.2% until Dec.); 229,4 +7,5% 246,7 Increase in the commissions of Non Financial Products, contributing with 5.3 M. in 2015 until Nov. (+15.5%); Improvement in the comissions of Cosec insurance that should surpass 0.5 M in 2015 (+21%). Negative contribution from Cards, ATM s and POS comissions (-1,6%; -1 M ) due to the Interchange Fees

25 Commercial results Insurance Domestic activity Stand Alone Insurance as highlight of the year: Commissions increase by +8.2% 301 thousand policies at 31 Dec. 15, with growth in all insurances, with exception of Life Insurance. Launch of Civil Liability Insurance - c.13 thousand policies (Individuals). Health Insurance - increase of more than policies in the year. COMMISSIONS* (M. ) STOCK OF STAND ALONE POLICIES (# POLICIES) Credit Linked Insur. Stand Alone Insur % % +8.2% , Total Companies Empresas Other Outros individuals Particulares Indiv. Resp. Civil Part. liability Mortgage Habitação Life Vida Dec.12 Dez-12 Dec.13 Dez-13 Dec.14 Dez-14 Dec.15 Dez-15 * Allianz insurance commissions. 25

26 Commercial results Insurance Domestic activity Worth mentioning, in Credit Linked insurance: Commissions rose by + 3.8%, reflecting increases in Protection insurance associated with Mortgage (+ 270 m. ) and Personal Loans (+377 m. ) and Participation in Profits (+406 m. ). The total Credit Linked insurance portfolio reduced 1%, although the increases in the Personal Loans Life Insurance, + 2.5%, and Mortgage Protection Insurance, + 3%, should be highlighted. COMMISSIONS* (M. ) STOCK CREDIT LINKED INSURANCES (# POLICIES) Credit Linked Insur. Stand Alone Insur % % +8.2% Total Other Outros PL CP - Protecção Protection PL CP - Vida Life Mortg CH - MultiR multir Imóvel Real State Mortg CH - Protecção Protection Mortg CH - Vida Life * Allianz insurance commissions. Dec.12 Dez-12 Dec.13 Dez-13 Dez-14 Dec.14 Dec.15 Dez-15 26

27 Commercial results Service quality ECSI CUSTOMER SATISFACTION NATIONAL INDEX # 1 # 2 Domestic activity BASEF SATISFACTION WITH THE MAIN BANK # / Montepio Outros Other bancos banks Millennium BCP BES/Novo Banco BPI Santander Totta CGD Crédito Agrícola BPI Montepio Millennium BCP Santander Totta Total CGD BES/Novo Banco BPI remains ahead of the main competitors in ECSI and BASEF indexes. Source: ECSI - The reference year of each ECSI edition refers to the timing of the opinion s collection. From 2016 onwards, this collection shall take place in January, but until now it occurred in December. This methodological change caused the lack of collection of opinion in 2015 and the entity responsible for the study opted, for this fact, for renaming the 2014 edition to 2014/2015. BASEF Marktest Banking. 27

28 Customer resources Corrected by duplication of balances Domestic activity The trend in deposits 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 the Social Security. M. Dec. 07 Dec. 08 Dec. 09 Dec. 10 Dec. 11 Dec. 12 Dec. 13 Dec 14 Dec 15 On-balance sheet resources Sight deposits Term deposits Deposits Bonds and Other (1) Deposits and Bonds Insurance capitalisation and other Total on-balance sheet Off-balance sheet resources Unit trust funds, PPR and PPA BPI Suisse Off-balance sheet resources Sub-total Other customer resources Public offerings Third-party funds placed with customers Other customer securities (2) Other customer resources Total Pension Funds BPI Group Other ) Fixed rate bonds, structured products, subordinated bonds and preference shares placed with Customers. 2) Excludes BPI securities.

29 Loans to Customers Domestic activity M. Dec.07 Dec.08 Dec.09 Dec.10 Dec.11 Dec.12 Dec.13 Dec.14 Dec.15 Corporate banking Large companies Medium-sized companies Project Finance - Portugal Madrid branch Project Finance Corporates Public Sector Central Administration Regional and local administrations State Corporate Sector - in the budget perimeter State Corporate Sector - outside the budget perimeter Other Institutional Individuals and Small Businesses Banking Mortgage loans to individuals Loans contracted before Loans contracted in 2011 and thereafter Consumer credit / other purposes Credit Cards Car financing Small businesses BPI Vida Increase in bonds and commercial paper mainly of large Portuguese companies Loans in arrears net of impairments Other Total Following the repurchase of the equity piece of mortgage loans securitization in Feb.12, 0.8 Bi. of mortgage loans were recognized in the balance sheet.

30 Financial assets available for sale 31 Dec Dec Domestic activity M. Acquisition value Book value Gains / (losses) 1) Gains / (losses) 1) Acquisition Book in in derivatives Total value value in securities in derivatives Total securities Public debt Portugal Of which TBonds TBills Italy T-Bills Spain T-Bills Italy Corporate Bonds Equities Other Total ) Fair value reserve before deferred taxes. Includes the impact of hedging interest rate. 30

31 Net operating revenue Net interest income increases 25.3 M. (+35.6%) in the 4 th quarter 2015 relative to the same quarter 2014, a period that was no longer affected by the cost of CoCo's (fully reimbursed until Jun.14). Domestic activity M. Dec. 14 Dec. 15 M. % Net interest income % Capitalisation insurance results % Commissions (net) % Commercial banking income % Profits (losses) from financial operations Of which: gains/(losses) with sale of MLT public debt Other Net operating revenue

32 Net interest income Domestic activity NET INTEREST INCOME EURIBOR 3M TERM DEPOSITS SPREAD M % 4% 3% 5.0% 2.0% 1.5% 1.0% 1.9% % 1% 1.6% 0.5% 0.0% 0.8% Average spread of new deposits in December 0.1% 30 0% -0.03% -0.5% 0-1% Cost of CoCo s Euribor 3M quarterly average -1.0% Quarterly average spread: Term deposits remuneration - Euribor 32

33 Net interest income Bi LOANS TO CUSTOMERS PORTFOLIO 29.2 T-Bills: auction average interest rates Bi. 8 Domestic activity SOVEREIGN DEBT PORTFOLIO BT 365d 2.3% 4.2% 4.0% 1.5% 0.50% 0.04% BT 91 d 1.6% 4.8% 3.8% 0.9% 0.24% 0.02% Portfolio s balance (end of quarter) Portfolio s balance (acquisition price; outstanding amounts at end of quarter) Other ST debt (Spain and Italy) T-Bills MLT Debt 33

34 Commissions Domestic activity Amounts in M. Dec.14 Dec.15 Commercial Banking (1) Asset Management Investment Banking (1) % Commissions % ) Non comparable amounts due to the demerger operation ocurred in the last quarter of 2014 whereby part of the activities previously carried out by the investment bank were transferred to Banco BPI. 34

35 Commercial Banking commissions Domestic activity Amounts in M. Dec.14 Dec.14 M. Loans and guarantees Cards Deposits and related services Insurance intermediation Banking services (1) Securities-related services (1) Other Commercial Banking commisions (1) 1) Non comparable amounts due to the demerger operation ocurred in the last quarter of 2014 whereby part of the activities previously carried out by the investment bank were transferred to Banco BPI. 35

36 Operating costs Domestic activity M. Dec. 14 Dec. 15 M. % Personnel costs % OSS % Depreciation and amortisation % Operating costs (excl. costs w/ early retirements % Note: Excluding costs with early-retirements. 36

37 Operating costs ( ) Domestic activity M % 2015 vs Personnel costs 1) % OSS % Depreciation % Operating costs 1) % / 15 Employees % Variable remunerations (M. ) Accumulated inflation ( ) Operating costs +9.3% -17.1% ACTV increases (%) 2.75% 2.6% 0.0% Distribution network in Portugal 2) % Costs reduction M. 1) Excluding costs with early-retirement. 2) Retail branches, investment centres, corporate centres, institutional centres and Project finance centre. 37

38 Special costs Amounts in million euros Change Contribution: Deposit Guarantee Fund National Resolution Fund European Resolution Fund Extraordinary over Banking Sector Total

39 Distribution network in Portugal Domestic activity -28% No Traditional Branches Investment Centres Housing Shops Corporate Banking Total

40 Efficiency ratio OPERATING COSTS 1 / NET OPERATING REVENUE Excluding non recurring impacts Domestic activity 86.5% 2) 75.1% 76.5% 69.8% 68.8%67.7% 70.0% 69.6% 65.9% 71.0% 63.0%60.6% 2) 2) 79.4% 2) 73.7% 58.1% ) Operating costs (personnel costs + outside supplies and services + depreciation and amortisation), excluding early-retirement costs and gains due to the amendment to the terms of the pension plan (death subsidy) by Decree Law 133/2012 and Decree Law 13/2013, as % of operating income. 2) Excluding non-recurring impacts both in costs and revenues. 40

41 Equity-accounted earnings Domestic activity M. Dec.14 Dec.15 M. Insurance Allianz Portugal Cosec Finangeste Unicre Other Total

42 Non-performing loans NON-PERFORMING LOANS 1 Domestic activity Nonperforming loans M Non-performing loans ratio (%) 1.5% 1.8% 2.3% 2.4% 3.0% 4.0% 4.7% 5.0% 4.5% ) Calculation method applies the Instruction 23/2011 of Bank of Portugal to the consolidation perimeter of BPI according to the IAS.

43 Non-performing loans and coverage by impairments 31 Dec.15 Domestic activity Non performing loans (M. ) Non performing loans ratio Coverage by impairments 1) Corporate banking % 96% Individuals Banking % 71% Mortgage loans % 62% Loan-to-Value 54.4% Other loans to individuals % 101% Small businesses % 89% Other 3 0.1% Domestic activity % 85% 1) Without considering the coverage by associated guarantees. 43 Note: Non-performing loans calculation method applies the Instruction 23/2011 of Bank of Portugal to the consolidation perimeter of BPI according to the IAS.

44 Cost of credit risk IMPAIRMENTS (gross of recoveries) Domestic activity In M ) 2) As % of loan portfolio 0.96% 1.04% 0.72% 0.41% 0.23% 0.49% 0.45% ) 2) 44 1) In 2009, excludes an extraordinary loan impairment charge of 33.2 M. (0.12% of the average loan portfolio). 2) In 2010, that extraordinary charge was utilised and therefore, added to impairment charges for the year.

45 Cost of credit risk IMPAIRMENTS NET OF RECOVERIES Domestic activity In M ) 2) As % of loan portfolio 0.91% 0.98% 0.66% 0.31% 0.15% 0.42% 0.38% ) 2) 45 1) In 2009, excludes an extraordinary loan impairment charge of 33.2 M. (0.12% of the average loan portfolio). 2) In 2010, that extraordinary charge was utilised and therefore, added to impairment charges for the year.

46 Cost of credit risk Loan impairments by segment Domestic activity M. 31 Dec.14 M. % loan portfolio 31 Dec.15 M. % loan portfolio Corporate Banking % % Individuals Banking % % Mortgage loans % % Other loans to individuals % % Small businesses % % Other % % Total impairments % % Recoveries % % Impairments net of recoveries % % 46

47 BPI - Property repossessed from loan recovery Domestic activity Adjustment of the excess coverage identified in the assets assessment concluded in 4Q13 MORTGAGE OTHER TOTAL Gross value Impairment Impairment as % of gross value 40% 38% 28% 33% 38% 43% 4% 5% 4% 16% 19% 36% 36% 39% 37% 31% 28% 26% 22% 25% 33% 35% 38% 40% 20% 17% 18% Units in Recovery Fund FCR = 67.5 M. (net exposure) Units in Corporate Reestructuring Fund, FCR = 3.6 M. (net exposure) 47

48 Recovery and Corporate Reestructuring Funds (FCR) Domestic activity 31 Dec.15 In M. Recovery Fund, FCR Corporate Reestructuring Fund, FCR Realised capital Impairments Potential capital gains / (losses) Net exposure Unrealised subscribed capital Balance sheet value in the asset side

49 Non-performing loans ratio comparison with Iberian banks NON-PERFORMING LOANS RATIO 1 (Sep.15) Spanish banks Portuguese banks Banco BPI Bank L Bank K Bank J Sector Portugal Bank I Bank H Bank G Sector Spain Bank F Bank E Bank D Bank C BPI BPI domestic Bank B Bank A 5.6% 5.6% 4.6% * 4.5% * 4.5% 4.1% * 14.5% 13.1% 12.9% 12.6% 11.9% 11.4% 10.7% 8.5% 8.7% 20.2% * At December ) Portuguese banks non performing loans ratio (according to Instruction 23/2011 of the Bank of Portugal); Spanish banks - loans in arrears > 90 days and associated loans falling due.

50 Employees pension liabilities covered by 108.8% Domestic activity M. 31 Dec Dec. 15 Pension obligations Pension funds 1) Cover of pension obligations 97.7% 108.8% Total actuarial deviations 2) (184.0) (40.7) Pension funds return 7.7% 14.0% ANNUAL AVERAGE RETURN 4 Since Fund creation (1991) 9.5% Last 10 years 7.4% Last 5 years 10.2% Last 3 years 13.2% 1) In Dec.14 includes contibutions transferred to the pension funds in the beggining of 2015 (47.0 M. ). 2) Directly recognized in shareholders equity, according to IAS19. 3) Non annualized return. 4) Of Banco BPI pension fund, until 31 Dec

51 Tax losses generated in 2011 M. AT 31 DEC.14 AT 31 DEC tax losses still to be used 222 Deadline for using 2011 tax losses ends in 2015 In late 2014, taking into account the 2015 results projections, the Deferred Tax Assets (DTA) relative to 2011 tax losses were written-off in full; As a consequence, BPI recorded in 2014 a negative impact in net income of 50.9 M. with the write-off of DTA. Profit before taxation BBPI individual accounts PF actuarial deviations Other adjustments to taxable income Taxable income Tax-loss carry forward Limited to 70% of taxable income DTA on tax-loss carry forward Based on a Corporate income tax rate of 21% DTA recorded in the accounts at 31 Dec

52 I. Capital II. Consolidated results III. Domestic activity IV. International activity V. Public recognition VI. Social responsibility

53 Net profit evolution NET PROFIT International activity % % BCI (held at 30%) BFA (held at 50.1%) Other %

54 BFA contribution International activity M. 150 NET PROFIT OF BFA ATTRIBUTABLE TO BPI BFA held at 100% BFA held at 50.1% 54

55 Net profit of 31.2 M. in the 4th quarter International activity NET PROFIT M Q14 1T14 2Q14 2T14 3Q14 3T14 4Q14 4T14 1Q15 1T15 2Q15 2T15 3Q15 3T15 4Q15 4T15 55

56 Impact of Kwanza (AKZ) devaluation at 31 December Consolidated Consolidated (M. ) 31 December 2015 Incorporating As reported kwanza devaluation 1 EUR = 148 AKZ 1 EUR = 170 AKZ Chg. Net income Assets 40,673 40, Loans 24,282 24, Customers' resources 31,869 31, Minority Interests Shareholders' Equity 2,407 2, CET1 ratio phasing in (rules 2016) 10.9% 10.8% -0.1% CET1 ratio fully loaded 10.0% 9.9% -0.1% 56

57 Kwanza exchange rates evolution International activity Akz 160 AKZ / 1 USD (end of month) $US 1.60 USD / 1 EUR (end of month) Akz 180 AKZ / 1 EUR (end of month) Dec- 13 Mar- 14 Jun- 14 Sep- 14 Dec- 14 Mar- 15 Jun- 15 Sep- 15 Dec Dec- 13 Mar- 14 Jun- 14 Sep- 14 Dec- 14 Mar- 15 Jun- 15 Sep- 15 Dec Dec- 13 Mar- 14 Jun- 14 Sep- 14 Dec- 14 Mar- 15 Jun- 15 Sep- 15 Dec- 15 Quarterly average exchange rates 1Q14 2Q14 3Q14 4Q (ytd) 1Q15 2Q15 3Q / 2015 AKZ / 1 USD % USD / 1 EUR % AKZ / 1 EUR % 4Q (ytd) 57

58 Net operating revenue International activity M. Dec.14 Dec.15 M. % Net interest income % Commissions and other income (net) % Profits / losses from financial operations % Other operating income and charges % Net operating revenue % 58

59 BFA net operating revenue Individual accounts of BFA expressed in EUR, USD and AKZ International activity Net interest income Dec.14 Dec.15 M. % Dec.14 Dec.15 M.USD % Dec.14 Dec.15 M.AKZ % % % % Commissions % % % Profits from financial operations In millions of, consolidation currency (M. ) In millions of USD (M.USD) In millions of AKZ (M.AKZ) % % % Other operating income (charges) Net operating revenue % % % % % % Note: Does not include revenues of BPI Capital África and BPI Moçambique. 59

60 Operating costs International activity M. Dec.14 Dec.15 M. % Personnel costs % Outside supplies and services % Depreciation & amortisation % Operating costs % Average exchange rate of EUR % USD / 1 EUR % AKZ / 1 EUR % 60

61 BFA Operating costs BFA individual accounts expressed in EUR, USD and AKZ International activity In millions of, consolidation currency (M. ) Dec.14 Dec.15 M. % Dec.14 Dec.15 In millions of USD (M.USD) M.USD In millions of AKZ (M.AKZ) % Dec.14 Dec.15 M.AKZ % Personnel costs % % % Outside supplies & services Depreciation & amortisation % % % % % % Operating costs % % % Note: Does not include costs of BPI Capital África and BPI Moçambique. 61

62 Efficiency ratio International activity OPERATING COSTS / NET OPERATING REVENUE 1) 50% 40% 30% 20% 41.4% 37.0% 36.6% 39.7% 32.5% 30.4% 30.6%28.2% 29.1% 33.1%36.9% 34.7% 33.6% 26.2% 24.4% 10% ) Operating costs (personnel costs + outside supplies and services + depreciation and amortisation) as % of net operating revenue. 62

63 Credit risk coverage by provisions International activity In millions of (M. ), consolidation currency In millions of USD (M.USD) Dec.14 Dec.15 Dec.14 Dec.15 Provisions as % of the average loan portfolio 1.48% 1.99% 1.45% 1.98% Provisions net of recoveries as % of the average loan portfolio 1.30% 1.88% 1.27% 1.86% Loans in arrears (+90 days) Ratio of loans in arrears (+90 days) (%) 3.2% 4.2% 3.2% 4.2% Credit at risk Ratio of credit at risk (%) 4.4% 5.5% 4.4% 5.5% Total provisions Total provisions as % of loans in arrears (+90 days) 142% 159% 142% 159% Total provisions as % of credit at risk 102% 122% 102% 122% 63

64 Loans and Customer resources International activity LOANS TO CUSTOMERS M % Loans / Resources 22% CUSTOMER RESOURCES M. -7.3% Dec.14 Dez.14 Dez.15 Dec.15 Dec.14 Dez.14 Dez.15 Dec.15 Expressed in the currency the loans were granted % of total (Dec.15) Loans Dec.14 Dec.15 % 2014/ 2015 c. 1/2 USD (Mln) % c. 1/2 AKZ (Mln) % Expressed in the currency the resources were captured % of total (Dec.15) Resources Dec.14 Dec.15 % 2014/ 2015 c. 1/3 USD (Mln) % c. 2/3 AKZ (Mln) % 64

65 Strong growth in Customer base International activity CUSTOMERS STAFF BRANCHES No. (thousand) No No Homebanking customers Retail branches 166 Investment Centres 9 Corporate Centres 16 65

66 BCI selected indicators International activity 30% equity-accounted shareholding M. Dec. 14 Dec. 15 % Contribution to consolidated net profit % Total assets % Loans % Deposits % Loans / Deposits 80% 76% Market shares In loans 29.7% 30.0% 1) In deposits 28.5% 29.0% 1) Staff % Branches % Market share in branches 27.8% 31.1% 1) November

67 I. Capital II. Consolidated results III. Domestic activity IV. International activity V. Public recognition VI. Social responsibility

68 Public recognition Awards attributed to BPI relating to 2014 and 2015 GLOBAL Best Large Bank, Most Solid Bank, Most Profitable Bank, Bank that Grew the Most Exame Banks & Insurance Awards 2014, Large Banks category. The Bank that Grew the Most award was obtained by the 1st time in 2014 and repeated in 2015 (ex aequo). Banking sector s Trusted Brand Reader s Digest Selections 2014 and Between 2010 and 2013, BPI was the 2nd most trusted brand in the banking sector. Best Private Banking PWM and The Banker 2014, in Best Private Bank category. Euromoney Private Banking & Wealth Management Survey 2016, in Asset Management, International Clients and Philantropic Advice categories. 68

69 Public recognition GLOBAL Excellence Brands - Superbrands Excellence Brand in Portugal in 2014 and Senior Choice Consumer Choice Consumer Choice 2015, in the category of Banking Products for Seniors. Best Annual Report of the Financial Sector Investor Relations & Governance Awards 2014, by the 16 th row in the last 27 years. 69

70 Public recognition CAPITAL MARKETS Best Research House Investor Relations & Governance Awards 2014, best Equity Research team in the Portuguese market, by the 9 th time in 11 editions. Most Active Research House and Most Active Trading House in Bonds NYSE Euronext Lisbon Awards 2015, by the 4th consecutive year. Since the 1st edition in 2012, BPI received a total of 15 awards. Best Iberian Broker Starmine Analyst Awards 2014, ex aequo, classification elaborated by Thomson Reuters. It was the 4th time that BPI was awarded since Best Market Analyst Bruno Silva Investor Relations & Governance Awards 2014, best Equity Research Analyst. It was the 5th time in 11 editions that an analyst from BPI was awarded. Best Iberian Research Team Top 2 in 2015 and Top 3 in 2014 in the Institutional Investors All Europe. Top 3 in the Thomson Reuters Extel Surveys in

71 Public recognition ASSET MANAGEMENT Most Active Equities Fund: BPI Ibéria BPI Gestão de Activos NYSE Euronext Lisbon Awards 2015, Investment Fund/Open Pension Fund category in Portuguese Funds. Best Open-end Pension Fund: BPI Valorização BPI Vida e Pensões IPE Investment & Pensions Europe 2015, Country Award. It was the 7th time that an open end fund from BPI Vida e Pensões was awarded. All Buyside Firms BPI Gestão de Activos Thomson Reuters - Extel Surveys Since 2004, BPI Gestão de Activos received a total of 48 awards. 71

72 Public recognition Reputation and recognition GLOBAL Bank of the Year in Angola Award attributed in 2015 by the 2nd year by the British magazine The Banker. Best Bank in Angola Award attributed in 2015 by EMEA Finance, by the 6th time since Best Company of the Year, Financial Sector Award attributed in 2015, by the 3rd consecutive year, in the 4th edition of the Sirius Awards organized by Deloitte. Best Branch Network Award attributed in 2015 by Capital Finance International magazine. Best Corporate Bank Award attributed in 2015 by Internacional Finance Magazine by the 3rd consecutive year. Best Corporate Management Award attributed in 2015 by the World Finance magazine. 72

73 Public recognition Best Community Development Bank Award attributed in 2015 by The Banker Africa magazine. Best Bank in Angola Award attributed in 2015 by the 1st time by the Euromoney magazine. Excellence Brand - Superbrands Brand of Excellence in Angola in 2015, by the 5th consecutive year. STP Excellence Award Straight Through Processing Award attributed in 2015 by Deutsche Bank by the 13 consecutive time. Best Commercial Bank Award attributed in 2015 by the 3rd consecutive year by the English portal Global Banking and Finance Review. Best Commercial Bank and Most Innovative Bank Awards attributed in 2013 and 2014 by the Global Financial Market. Best Banking Group, Best Corporate Management and Best Retail Bank Awards attributed by World Finance magazine in 2013 and

74 Public recognition Best Banking Brand in West Africa Award attributed in 2014 by the 2nd consecutive row by Global Brands Magazine. Best Programme for Involvement with the Community Award attributed in 2013 by Capital Finance International Magazine. Best Debit Card Programme 2014 Award attributed on Card and epayment Africa Awards. Best Management Report and Accounts Sirius Award, attributed by the 2nd consecutive year in

75 I. Capital II. Consolidated results III. Domestic activity IV. International activity V. Public recognition VI. Social responsibility

76 Social responsibility Domestic activity TOTAL 2015, Thousand CULTURE SOCIAL SOLIDARITY M Average EDUCATION, SCIENCE AND RESEARCH INNOVATION, ENTREPRENEURSHIP AND OTHERS 76

77 Social responsibility Main supports Domestic activity 2015, Thousand CULTURE SOCIAL SOLIDARITY th Fundação Serralves 728 th Fundação Casa Música 700 th BPI Seniores Award 700 th BPI Capacitar Award th Fundação C. Gulbenkian 160 th BPI Christmas Campaign 665 EDUCATION, SCIENCE AND RESEARCH 249 th Instituto Superior Técnico 75 th Fundação Cidade Lisboa 60 th Faculdade Economia UNL INNOVATION, ENTREPRENEURSHIP AND OTHERS 190 th Nation Agriculture Award 30 th BPI Inovation Award 15 th Nova Idea Competition

78 Social responsibility Support to projects that promote a better quality of life and social inclusion of people with disabilities. Since applications 106 awards th in donations beneficiaries 78

79 Social responsibility Support to projects that promote social inclusion and active aging of people over 65 years. Since applications 78 awards th in donations beneficiaries 79

80 Social responsibility Support to projects that promote the improvement of living conditions of people who are experiencing poverty and social exclusion, complementing the segments already covered by BPI Capacitar and BPI Senior Awards people with disabilities and the elderly. Main target groups of BPI Solidário Award: Children and young people Long-term unemployed Single parents Immigrants, ethnic minorities and refugees Prisioners and ex-offenders Homeless Drug addicts Victims of violence 80

81 Social responsibility 500 thousand euros in donations Application period: from 2 nd to 29 th of May Private non-profit institutions President of the Jury: Mr. António Seruca Salgado Selection of the most sustainable and innovative projects, with the greater social impact Project execution period up to 3 years 81

82 Income statements and Balance Sheets

83 Income statement Amounts in M. Consolidated 1Q 2Q 3Q 4Q Q 2Q 3Q 4Q 2015 Net interest income (narrow sense) % Unit linked gross margin % Income from securities (variable yield) % Commissions related to deferred cost (net) % Net interest income % Technical results of insurance contracts (7.5%) Commissions and other similar income (net) % Gains and losses in financial operations (91.7) % Operating income and charges (4.1) (8.4) (6.1) (9.6) (28.2) (6.1) (8.0) (3.1) (15.3) (32.6) (15.6%) Net operating revenue % Personnel costs, excluding costs w ith earlyretirements % Outside supplies and services % Depreciation of fixed assets % Operating costs, excluding costs w ith earlyretirements % Costs w ith early-retirements (80.0%) Operating costs (0.1%) Operating profit before provisions (62.0) % Recovery of loans w ritten-off % Loan provisions and impairments (29.1%) Other impairments and provisions (56.9%) Profits before taxes (106.4) (35.8) % Corporate income tax (22.7) (8.5) 29.1 n.s. Equity-accounted results of subsidiaries % Minority shareholders' share of profit % Net Income (104.8) (1.8) (7.7) (49.3) (163.6) % 2015 Chg.% 2014 / 2015 n.s. non-significant. 83

84 Balance sheet Consolidated Amounts in M. Cash and deposits at central banks % Amounts owed by credit institutions repayable on demand % Loans and advances to credit institutions % Loans and advances to Customers % Financial assets held for dealing and at fair value through results % Financial assets available for sale % Financial assets held until maturity % Hedging derivatives % Investments in associated companies and jointly controlled entities % Investment properties 1) % Non-current assets held for sale % Other tangible assets % Intangible assets % Tax assets % Other assets % Total assets % Central banks resources % Financial liabilities held for dealing % Other credit institutions' resources % Customers' resources and other loans % Debts evidenced by certificates % Technical provisions % Financial liabilities associated to transferred assets % Hedging derivatives % Provisions % Tax liabilities % Contingently convertible subordinated bonds Dec. 14 Dec. 15 % Other subordinated loans % Other liabilities % Shareholders' equity attributable to the shareholders of BPI % Minority interests % Total liabilities and shareholders' equity % 84 1)According to IFRS10, in 2014, Banco BPI started to consolidate by the full consolidation method, the funds BPI obrigações Mundiais, Imofomento and BPI Strategies.

85 Income statement Amounts in M. Domestic activity 1Q 2Q 3Q 4Q Q 2Q 3Q 4Q 2015 Net interest income (narrow sense) % Unit linked gross margin % Income from securities (variable yield) % Commissions related to deferred cost (net) % Net interest income % Technical results of insurance contracts (7.5%) Commissions and other similar income (net) % Gains and losses in financial operations (120.1) (92.7) % Operating income and charges (3.4) (3.4) (3.5) (6.6) (16.9) (2.7) (2.7) (2.2) (17.1) (24.7) (45.9%) Net operating revenue % Personnel costs, excluding costs w ith earlyretirements (2.8%) Outside supplies and services (0.7%) Depreciation of fixed assets % Operating costs, excluding costs w ith earlyretirements (1.3%) Costs w ith early-retirements (80.0%) Operating costs (6.1%) Operating profit before provisions (119.5) (80.9) % Recovery of loans w ritten-off % Loan provisions and impairments (40.1%) Other impairments and provisions (58.0%) Profits before taxes (160.3) (31.0) (38.8) (47.1) (277.3) % Corporate income tax (29.4) (0.4) (13.1) (4.2) (115.9%) Equity-accounted results of subsidiaries % Minority shareholders' share of profit 1.8 (1.2) 0.2 (0.2) (93.6%) Net Income (129.2) (27.0) (41.3) (92.2) (289.7) (2.0) % 2015 Chg.% 2014 / 2015 n.s. non-significant. 85

86 Balance sheet Domestic activity Amounts in M. Dec. 14 Dec. 15 % Cash and deposits at central banks % Amounts owed by credit institutions repayable on demand % Loans and advances to credit institutions % Loans and advances to Customers % Financial assets held for dealing and at fair value through results % Financial assets available for sale % Financial assets held until maturity % Hedging derivatives % Investments in associated companies and jointly controlled entities % Investment properties 1) % Non-current assets held for sale % Other tangible assets % Intangible assets % Tax assets % Other assets % Total assets % Central banks resources % Financial liabilities held for dealing % Other credit institutions' resources % Customers' resources and other loans % Debts evidenced by certificates % Technical provisions % Financial liabilities associated to transferred assets % Hedging derivatives % Provisions % Tax liabilities % Contingently convertible subordinated bonds Other subordinated loans % Other liabilities % Shareholders' equity attributable to the shareholders of BPI % Minority interests % Total liabilities and shareholders' equity % 86 1) The balance sheet of the domestic activity presented is not corrected by the balance of operations with the geographical segment International activity. 2) According to IFRS10, in 2014, Banco BPI started to consolidate by the full consolidation method, the funds BPI obrigações Mundiais, Imofomento and BPI Strategies.

87 Income statement Amounts in M. International activity 1Q 2Q 3Q 4Q Q 2Q 3Q 4Q 2015 Net interest income (narrow sense) % Unit linked gross margin Income from securities (variable yield) Commissions related to deferred cost (net) ( 0.1) (95.3%) Net interest income % Technical results of insurance contracts Chg.% 2014 / 2015 Commissions and other similar income (net) % Gains and losses in financial operations % Operating income and charges ( 0.7) ( 5.0) ( 2.6) ( 3.0) ( 11.3) ( 3.5) ( 5.3) ( 1.0) 1.8 ( 7.9) 29.7% Net operating revenue % Personnel costs % Outside supplies and services % Depreciation of fixed assets % Operating costs % Operating profit before provisions % Recovery of loans w ritten-off (23.7%) Loan provisions and impairments % Other impairments and provisions (51.1%) Profits before taxes % Corporate income tax ( 14.1) % Equity-accounted results of subsidiaries (11.1%) Minority shareholders' share of profit % Net Income % 87

88 Balance sheet International activity Amounts in M. Cash and deposits at central banks % Amounts owed by credit institutions repayable on demand % Loans and advances to credit institutions % Loans and advances to Customers % Financial assets held for dealing and at fair value through results % Financial assets available for sale % Financial assets held until maturity Hedging derivatives Investments in associated companies and jointly controlled entities % Investment properties Non-current assets held for sale Other tangible assets % Intangible assets % Tax assets % Other assets % Total assets % Central banks resources Financial liabilities held for dealing % Other credit institutions' resources % Customers' resources and other loans % Debts evidenced by certificates Technical provisions Financial liabilities associated to transferred assets Hedging derivatives Provisions % Tax liabilities % Contingently convertible subordinated bonds Other subordinated loans Dec. 14 Dec. 15 % Other liabilities % Shareholders' equity attributable to the shareholders of BPI % Minority interests % Total liabilities and shareholders' equity % The balance sheet of international activity presented is not corrected by the balance of operations with the geographical segment "Domestic activity. 88

89 Profitability, efficiency, credit quality and solvency As in the Bank of Portugal s Instruction no. 23/2011 Consolidated 31 Dec Dec.15 Net operating revenue and results of equity accounted subsidiaries / ATA 2.1% 2.9% Profit before taxation and minority interests / ATA 0.0% 1.0% Profit before taxation and minority interests / average shareholders equity (including minority interests) -0.4% 15.1% Personnel costs 1) / net operating revenue and results of equity accounted subsidiaries 41.9% 31.2% Operating costs 1) / net operating revenue and results of equity accounted subsidiaries 72.3% 54.6% Loans in arrears for more than 90 days + doubtful loans / loan portfolio (gross) 4.3% 3.9% Loans in arrears for more than 90 days + doubtful loans, net of accumulated loan impairments / loan portfolio (net) 0.1% -0.2% Non-performing loans ratio 2) 5.4% 4.9% Non-performing loans ratio 2), net of accumulated loan impairments / loan portfolio (net) 1.2% 0.8% Restructured loans as % of total loans 3) 6.9% 6.6% Restructured loans not included in non-performing loans ("credit at risk") as % of total loans 3) 4.6% 4.6% Total capital ratio (according to Bank of Portugal rules) 11.8% 4) 11.1% 5) Tier I (according to Bank of Portugal rules) 11.8% 4) 11.1% 5) Core Tier I Ratio 11.8% 4) 11.1% 5) Loans (net) to deposits ratio 84% 85% ATA = Average total assets. 1) Excluding costs with early retirements. 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 Instruction 32/2013 of Bank of Portugal. 4) According to CRD IV/CRR phasing in rules for ) According to CRD IV/CRR phasing in rules for 2015.

90 Investor Relations Tel Website: Ricardo Araújo (IR Officer) Tel: Banco BPI, S.A. Publicly held company Head Office: Rua Tenente Valadim, no.284, Porto, Portugal Share capital: Registered in Oporto C.R.C. and corporate body no