Agenda. Main Highlights. Group. Capital. Liquidity. Profitability. Pension fund. Portugal. International operations. Conclusions

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2 DISCLAIMER This document is not an offer of securities for sale in the United States, Canada, Australia, Japan or any other jurisdiction, Securities may not be offered or sold in the United States unless they are registered pursuant to the US Securities Act of 1933 or are exempt from such registration. Any public offering of securities in the United States, Canada, Australia or Japan would be made by means of a prospectus that will contain detailed information about the company and management, including financial statements The information in this presentation has been prepared under the scope of the International Financial Reporting Standards ( IFRS ) of BCP Group for the purposes of the preparation of the consolidated financial statements under Regulation (CE) 1606/2002 The figures presented do not constitute any form of commitment by BCP in regard to future earnings Figures for 2010 and 2011 were subject to an audit by External Auditors 2

3 Agenda Main Highlights Group Capital Liquidity Profitability Pension fund Portugal International operations Conclusions 3

4 Highlights Capital Liquidity Core tier I increases from 6.7% in December 2010 to 9.4% in December 2011, in spite of the 65% impairment of the Greek public debt Deleveraging proceeding: gross loans to customers decline by 6.4%, while customer deposits increase 4.2%, reducing the loan to deposit ratio (BoP)* from 164% in December 2010 to 145% in 2011 Future annual refinancing needs are lower than in the past (more than half of the debt for 2012 already repaid) Accumulated net income reaches -786 million euros, penalized by exceptional negative items for a total amount close to 1 billion euros (sovereign debt, transfer of pension fund and reinforcement of impairment charges) Profitability Strong increase of the main international operations (Poland, Mozambique and Angola) with a 49.7% growth, reaching a net income of 236 million euros Core income improvement: net interest income up by 4.1% and banking commissions up by 1.0%, in spite of the macroeconomic environment Cost containment, excluding specific items (including the impact of the transfer of the pension fund): operating costs decrease by 2.3% on an annual basis 4 Pension fund Reinforcement of impairment charges by +86.7% in 2011 and high level of provisioning Transfer of the pension fund to the Social Security allowed for a reduction in liabilities by approximately 50%, which will translate in lower risk and costs with pensions going forward * According to instruction no. 23/2011 from the Bank of Portugal (calculated with net loans and customer deposits) Note: the previously disclosed financial statements were adjusted, on a proforma basis, due to the accounting change for OCI (Other Comprehensive Income) of the pension fund liabilities and the reclassification of securities impairment from trading income to other impairment and provisions 4

5 Highlights of 2011 Ensure solvency ratios above regulatory requirements Managing deleveraging process to stabilize balance sheet funding Reduction of the risk associated with the pension fund CT1 9% in % in 2012 L/D 120% in 2014 Liabilities Reduction>50% Core Tier I +275 bp 8.5% 9.1% 6.7% 6.7% * Includes impact of liability management transaction 9.4% Dec 10 Mar 11 Jun 11 Sep 11 * Dec 11 Loan to deposit ratio* (BoP) 164% 164% 157% 154% 145% Pension fund liabilities -53.9% 5,322 2,452 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Dec 10 Dec 11 * According to instruction no. 23/2011 from the Bank of Portugal (calculated with net loans and customer deposits) Note: Customer funds and loans to customers were adjusted from a Repo operation, in the amount of 2,256 million euros, as at 30 June and September

6 Highlights of 2011 Net income Exceptional negative Core income +1.7 % 2,328 2,369 Loan impairment charges (net of recoveries) Operating costs * % 1, % 1,536 1,501 Impairment defined by the Special Programme of Inspections * Excluding specific items Note: the previously disclosed financial statements were adjusted, on a proforma basis, due to the accounting change for OCI (Other Comprehensive Income) of the pension fund liabilities and the reclassification of securities impairment from trading income to other impairment and provisions 6

7 Agenda Main Highlights Group Capital Liquidity Profitability Pension fund Portugal International operations Conclusions 7

8 Core Tier I at 9.4% Consolidated Core Tier I ratio (%) +275bp 8.5% 9.1% 9.4% Compliance with regulatory requirements 6.7% 6.7% Core Tier I (M ) 3,966 3, % 4,949 5,199 5,199 Reinforcement of core tier I: - scrip dividend - exchange of subordinated debt by shares - rights issue - exchange of preference shares and subordinated debt RWA (M ) -7.2% 59,564 58,400 58,432 57,424 55,254 in spite of the 65% Greek debt provisioning Reduction of RWA: - IRB extension to other credit portfolios - deleveraging Dec 10 Mar 11 Jun 11 Sep 11 * Dec 11 IRB methodology: IRB Advanced for the retail exposures associated to small companies or collateralized by commercial or residential real estate, and IRB Foundation for the corporate portfolio in Portugal, excluding real estate promotion segment and simplified rating system entities. At the 1 st semester of 2009, the Bank received authorization from Bank of Portugal to adopt the internal model method to generic market risk and standard method for the operational risk * Includes impact of liability management transaction 8

9 Agenda Main Highlights Group Capital Liquidity Profitability Pension fund Portugal International operations Conclusions 9

10 Effort to increase customer deposits... Consolidated Customer funds Balance sheet customer funds +3.3% 51,342 53,060 5,733 5,544 Customer deposits in Portugal +7.2% 30,333 32,522 45, % 47,516 16,254 12,470 Dec 10 Dec 11 Other BS customer funds Deposits Off BS customer funds Dec 10 Dec 11 Customer deposits in Portugal Market share * % 1st Bank nd BCP rd Bank th Bank th Bank * Market share are based on information published by Bank of Portugal and on public information from Portuguese banks on 3 rd quarter

11 ... and to reduce loans to customers in line with deleveraging policy Consolidated Loans to customers (gross) -6.4% Loans to customers in Portugal 76,411 71, % 58,917 54,552 31,036 4,846 30,308 4,497 40, % 36,728 Dec 10 Dec 11 Mortgage Consumer loans Loans to companies -2.3% -7.2% Dec 10 Dec 11 Loans to companies in Portugal Market share * % 1st BCP nd Bank rd Bank th Bank th Bank * Market share are based on information published by Bank of Portugal and on public information from Portuguese banks on 3 rd quarter

12 Reduction of commercial gap as the main refinancing driver, allowing for a reduction of BCE usage (Eur billion) Commercial gap * -7.8 Loan to deposit ratio (BoP) ** % 164% 157% 154% 145% Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Accumulated net repayment of MLT debt (Medium and long term debt repayments since the beginning of 2010) Commercial gap has fallen 7.8bn last year Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Net usage in BCE Reduction of funding needs benefitting from deleveraging at a steady pace ECB usage decreases in spite of demanding funding environment Still a buffer of 3.6bn in eligible assets Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 * Calculated with net loans and customer deposits adjusted from a Repo transaction in the amount of 2,256 million euros, as at 30 June and September 2011 ** According to instruction no. 23/2011 from the Bank of Portugal (calculated with net loans and customer deposits) 12

13 Future annual refinancing needs are lower than in the past (Eur billion) Refinancing needs of medium-long term debt Already repaid * 3.0 ** Q >2018 Financing structure Loan to deposit ratio to reach ~120%: 17.1% 62.3% 15.4% 5.2% Deposits are main source of funding Deposits and equivalent Institutional debt Central banks Equity Deleveraging Transfer of other customer funds to deposits Commitment with wholesale market refinancing * Includes repurchase of own debt amounting 0.5 billion ** Includes 1.0 billion debt repayment as of February 6 th 13

14 Agenda Main Highlights Group Capital Liquidity Profitability Pension fund Portugal International operations Conclusions 14

15 Net income affected by exceptional negative items (Million euros) Net income Consolidated Exceptional negative items Net of taxes 344 Greece and sovereign crisis Greek public debt impairment (65%) Goodwill Greece Mark-to-market of Portuguese public debt Pension fund and SIP Pension fund Impairment defined by Special Inspection Programme (SIP) -388 Exceptional negative -972 Note: the previously disclosed financial statements were adjusted, on a proforma basis, due to the accounting change for OCI (Other Comprehensive Income) of the pension fund liabilities and the reclassification of securities impairment from trading income to other impairment and provisions 15

16 Income statement Consolidated YoY Net interest income 1, , % Commissions % Net trading income % Dividends, equity acc. earnings and other income <-100% Banking income 2, , % Staff costs % Other administrative costs % Depreciation % Operating costs 1, , % Operational profit before impairment 1, % Loans impairment (net of recoveries) , % Other impairment and provisions >100% Income tax and non-controlling interests <-100% Net income <-100% Includes the following items: Mark-to-market of Portuguese public debt -128M Disposal of loans and commercial paper -103M Contribution to the banking sector -32M Transfer of the pension fund +165M Loans impairment from Special Inspections program +381M Greece goodwill impairment +147M Greek public debt impairment +451M Note: the previously disclosed financial statements were adjusted, on a proforma basis, due to the accounting change for OCI (Other Comprehensive Income) of the pension fund liabilities and the reclassification of securities impairment from trading income to other impairment and provisions 16

17 Increase of net interest income in Portugal and in international operations Net interest income Consolidated +4.1% Portugal +1.5% , ,579.3 International operations +9.0% NIM 1.68% 1.74% 17

18 Growth in banking commissions in Portugal Commissions Consolidated Portugal Banking commissions Cards and transferences Loans and guarantees Bancassurance % International operations Other commissions Market related commissions Securities operations Asset management Total commissions % Banking com. Market rel. com. 18

19 Costs reduction in international operations and Portugal Operating costs * Consolidated Portugal Portugal * -2.3% 1, , % % % % International operations International operations -3.9% Depreciation Other administrative costs Staff costs * Excludes specific items, that include costs associated with early retirements of 7.2 M, in In 2011, specific items include, a reversal of provisions of 31.4 M associated with pension charges of former members of the Executive Board of Directors in 1Q11, early retirement costs of 1.8 M in 2Q11, a reversal of provisions related to the complementary pension plan of 12.8 M in 3Q11 and the costs associated with early retirements of 10.5 M and actuarial differences resulting from the transfer to the Social Security of M in 4Q11 Note: the previously disclosed financial statements were adjusted, on a proforma basis, due to the accounting change for OCI (Other Comprehensive Income) of the pension fund liabilities and the reclassification of securities impairment from trading income to other impairment and provisions 19

20 Credit quality reflects the economic cycle and exceptional provisioning Credit quality Consolidated Loans impairment on balance sheet Credit ratio Overdue and doubtful loans > 90 days Overdue loans ratio > 90 days Credit coverage ratio: 6.4% 8.9% Overdue and doubtful > 90 51% 55% days 3.0% 4.5% Overdue > % 109% days Total overdue and doubtful loans >90 days 4,889 2,599 2,290 6,372 3,176 3,196 Overdue >90 days 93 bp Impairment charges net of recoveries as % of total gross loans 186 bp 2,506 3,488 Dec 10 Dec 11 doubtful loans Overdue > 90 days Dec 10 Dec 11 Overdue and doubtful loans ratio for more than 90 days increases to 8.9%, reflecting the deterioration of the macroeconomic situation. Nevertheless coverage ratio increases to 55% due to exceptional provisioning Credit at risk (including insolvency and restructure) at 10.1% and coverage (by BS impairments and real estate and financial guarantees) above 100% 20

21 Diversified and well collateralised loan book, with reinforced provisioning Loan portfolio 16% 3% 1% 4% 4% 7% 7% 9% Other sectors Transp. and communications Other national activities Wholesale commerce Other int. activities Construction Real estate commercial and retail Other services Companies 51% Consumer 6% Mortgage 43% Note: figures adjusted for a Repo transaction, in the amount of 2,256 million euros, as at 30 June and September 2011 Loans by collateral 63% 30% 7% With real estate guarantees With other guarantees Without guarantees LTV of mortgage portfolio in Portugal 12% 8% 10% 23% 10% 22% 15% >90 Impairment charges ) Impairment charges (gross) in 2011 by sector 713 Impairment charges net of recoveries as % of total gross loans 93 bp 186 bp 1,332 Consumer Mortgage 88.7 Other sectors Commerce Construction Companies 1,037.5 Services

22 Agenda Main Highlights Group Capital Liquidity Profitability Pension fund Portugal International operations Conclusions 22

23 Pension fund: decrease in liabilities by more than 50%, with risk reduction and lower costs going forward Liabilities -53.9% 5, ,747 Reduction of liabilities by 53.9% to 2.4 Bn, with a 111% coverage ratio 2,452 Negative impact of 117M in P&L Negative impact in core tier I of 82M Dec 10 Non-financial actuarial differences Change in assumptions transfered Change in assumptions non-transfered Transfer Dec 11 Impact in P&L (Dec. 2011) Impact in core tier I (Jun. 2012) Change in assumptions transfered Value (M ) Gross effect -165 Fiscal effect Impact Change in the corridor and accounting policy effects Value (M ) +35 Change in assumptions (liabilities transfered)

24 Agenda Main Highlights Group Capital Liquidity Profitability Pension fund Portugal International operations Conclusions 24

25 Clear deleveraging effort with increase in deposits and decrease in loans Customer funds Loans to customers(gross) Balance sheet funds +5.6% 35,945 37,948 5,612 5,425 30, % 32,522 58,917 22,533 2, % -3.4% -8.0% 54,552 21,768 2,689 15,198 11,668 33,461 30, % Dec 10 Dec 11 Other BS customer funds Deposits Off BS customer funds Dec 10 Dec 11 Mortgage Consumer loans Loans to companies * Market shares are based on Bank of Portugal information and Portuguese banks information as at 3Q

26 Results in Portugal affected by exceptional negative factors Net income 293 Net income affected by exceptional negative factors of around 1 billion euros in 2011 Stable core income, in spite of adverse macroeconomic context Core income Exceptional negative Operating costs, excluding specific items, lower by 1.1% Operating costs* +0.2% -1.1% 1, , * Excludes specific items, that include costs associated with early retirements of 3.9 and 7.2 M in 2009 and 2010 respectively. In 2011, specific items include, a reversal of provisions of 31.4 M associated with pension charges of former members of the Executive Board of Directors in 1Q11, early retirement costs of 1.8 M in 2Q11, a reversal of provisions related to the complementary pension plan of 12.8 M in 3Q11 and the costs associated with early retirements of 10.5 M and actuarial differences resulting from the transfer to the Social Security of M in 4Q11 Note: the previously disclosed financial statements were adjusted, on a proforma basis, due to the accounting change for OCI (Other Comprehensive Income) of the pension fund liabilities and the reclassification of securities impairment from trading income to other impairment and provisions 26

27 Net interest income and net interest margin recovery (%, Eur million) Net interest income +1.5% Versus 3Q11: Deterioration of the deposits negative margin, penalized by competitive environment NIM 1.44% 1.45% Repricing effort benefits credit spread, in spite of the volume decrease Deposits and credit average spreads vs. Eur3M Credit spread Deposits spread Euribor 3 months (%, quarterly average) Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 27

28 Sustained effort of repricing loan portfolio Corporate (contractual spread, %) Mortgage (contractual spread, %) Portfolio Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q New production Portfolio Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Loans to companies (55% of total loans): Spreads increased by 118 bp in 2011 Repricing period slowing down to 4.5 years Mortgage (40% of total loans): Portfolio spreads of 115 bp New production with average spreads of 292 bp 28

29 Growth in banking commissions YoY Banking commissions % Cards and transferences % Loans and guarantees % Bancassurance % Other commissions % Market related commissions % Securities operations % Asset management % Total commissions % 29

30 Continued reduction of operating costs in Portugal Operating costs* -1.1% % % % Other administrative costs YoY Water, electricity and fuel % Consumables % Rents % Communications % Travel, hotel and representation costs % Advertising % Maintenance and related services % Credit cards and mortgage % Information tecnology services % Outsourcing % Training costs % Insurance % Transportation % Other supplies and services % Other administrative costs % Staff costs Adm. costs. Depreciation * Excludes specific items, that include costs associated with early retirements of 7.2 M, in In 2011, specific items include, a reversal of provisions of 31.4 M associated with pension charges of former members of the Executive Board of Directors in 1Q11, early retirement costs of 1.8 M in 2Q11, a reversal of provisions related to the complementary pension plan of 12.8 M in 3Q11 and the costs associated with early retirements of 10.5 M and actuarial differences resulting from the transfer to the Social Security of M in 4Q11 Note: the previously disclosed financial statements were adjusted, on a proforma basis, due to the accounting change for OCI (Other Comprehensive Income) of the pension fund liabilities and the reclassification of securities impairment from trading income to other impairment and provisions 30

31 Impairment reinforced, in line with macroeconomic challenges (%, Eur million) Credit quality Loans impairments on balance sheet Overdue loans > 90 days ratio 2.9% 4.6% Overdue >90 days coverage 113.3% 112.6% Total overdue loans 1, ,709 2, , bp 1,937.2 Impairment charges net of recoveries as % of gross loans 208bp 2,812.7 Dec 10 Dec 11 Overdue < 90 days Overdue > 90 days 31

32 Activo Bank: a new banking concept, a success case Distinctive factors Branches with extended hours Account and cards without Access through smartphones commissions Investment support application iphone at reduced prices for iphones Channels Offer Procedures Number of customers (thousand) PORTO (1) Península Opening of accounts in 20 minutes with all the payment means BRAGA (1) Pç Conde Agrolongo GAIA (2) Arrábida Shopping Av. República AVEIRO (1) Av. Dr. L. Peixinho Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Customer Deposits +24.7% Dec 10 Dec 11 OEIRAS (1) Lagoas Park CASCAIS (1) Cascais shop. LISBOA (3) Amoreiras Saldanha Vasco da Gama COIMBRA (1) Dolce Vita LEIRIA (1) Pç Rodrigues Lobo In 2011 The Bank increased its network from 4 to 12 branches located in 6 large urban areas 32

33 Agenda Main Highlights Group Capital Liquidity Profitability Pension fund Portugal International operations Conclusions 33

34 Significant improvement of Poland, Mozambique and Angola Net income YoY YoY in local currency International operations % 133.1% Poland % 43.1% Mozambique % 51.4% +49.7% Angola % 52.0% Greece % na Romania % 24.0% Other and non-controlling interests na na 34

35 Recovery in Poland and consistent growth in Africa Net income x 3,5 +50%

36 Poland: growth of customer funds and loans to customers Customer funds* Loans to customers (net) +3.8% +12.5% 8,955 9,292 8, % 9, Consumer 5, % 6,344 Mortgage 1, % 2,302 Companies Dec 10 Dec11 Dec 10 Dec 11 Strong growth in deposits, especially in retail (+10%) Reinforcement of growth drivers with focus in acquisition of new customerss (+220 thousand in 2011) Recovery in loans to companies growth New production of mortgages in zlotys, reached the highest level since 2008 * Includes deposits, bank s bonds sold to individuals and investment products Excluding FX effect. Rates PLN used: Profit and Loss account: ; Balance Sheet:

37 More profitable and efficient operation with better asset quality and lower cost of risk Net income % Net income of million euros in 2011, a 43.1% growth versus 2010, boosted by core income* growth and lower cost of risk Core income * 8.5% ROE 11.1% Core income* grew by 11.3% on an annual basis, driven by strong growth in net interest income Operating costs % % *Net interest income (proforma) + net commission income Excluding FX effect. Rates PLN used: Profit and Loss account: ; Balance Sheet:

38 Strong net interest income growth Net interest income* +17.9% Net commission income -0.6% NIM NIM evolution* 2.2% 2.1% 2.4% 2.4% 2.4% 2.6% 2.6% 2.96% 2.93% 2.98% 3.00% 2.95% 3.00% 2.88% 2.85% Loans margin -0.12% -0.11% 0.03% 0.13% 0.22% 0.39% 0.41% Deposits margin 2.5% 0.24% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Net interest income * increased 17.9% YoY Commissions at the same level of the previous year, mainly due to lower capital market related commissions * Pro-forma data. Margin from all derivatives, including those from hedging FX denominated loan portfolio, is presented in Net Interest Income, whereas in accounting terms part of this margin (20.0 M in 2010 and 11.9_M in 2011) is presented in net trading income Excluding FX effect. Rates PLN used: Profit and Loss account: ; Balance Sheet:

39 Cost to income reached the lowest level of the past 10 years, in spite of operating costs increase Operating costs +3.9% Number of employees 6, , ,1% ,7% Dec 10 Dec 11 Cost to income ratio at year-end at 59.5%, better than the targeted 60% Staff costs increased by 2.7% YoY. In the quarter, staff costs decreased by 0.6% Cost-to-incom e ratio 63.0% 59.5% Increase in number of employees due to recruitment in sales areas Other administrative costs* Staff costs Administrative costs (incl. depreciation) grew by 5.1% YoY and decreased by 0.6% on the quarter. The annual increase in costs resulted from Banking Guarantee Fund charges, higher costs with rentals and marketing, and FX impact * Including depreciation Excluding FX effect. Rates PLN used: Profit and Loss account: ; Balance Sheet:

40 Sustained improvement in credit quality : overdue loans ratio for more than 90 days below 2.3% and coverage at 123% Credit quality Impairment charges Total overdue loans >90 days 108% Overdue >90 Impairment 123% days coverage charges as % 65bps * 45bps * of average net loans Overdue loans 2.9% > 90 days ratio 2.3% % Overdue loans for more than 90 days ratio decreased to 2.3%, thanks to the improvement in companies portfolio and to stable, good quality in mortgage Adequate coverage ratio of overdue loans for more than 90 days above 120% Lower cost of risk in 2011 (45 bps) vs (65bps) * Impairment charges/ average net loans in the period (in bps, annualized) Excluding FX effect. Rates PLN used: Profit and Loss account: ; Balance Sheet:

41 Mozambique: customer funds growth and loans with a low delinquency level Customer funds Loans to customers (gross) +35.0% 1, % Overdue loans >90 days coverage ratio 479% Overdue loans 0.9% > 90 days ratio 1.5% % +19.0% +40.4% 1, % 728 Dec 10 Dec 11 Dec 10 Dec 11 Mortgage Consumer loans Loans to companies 41

42 Strong net income growth Net income +69.5% 89.4 Net income rises 69.5% ROE reaches 38.3% 52.8 Net income evolution supported on banking income good performance (+34.8%), especially net interest income Ongoing expansion plan ROE 32.3% 38.3% GDP growth in Mozambique remains at high levels: 7.2% in 2011(P) and 7.5% in 2012(P) * Banking income Operating costs % % 76.8 * Source: International Monetary Fund (World Economic Outlook Database, September 2011) 42

43 Growing trend of net interest income and commissions and efficiency improvement in spite of expansion plan Net interest income Operating costs +50.0% Cost-to-income ratio % % -5.4 pp 37.6% Commissions % 30.6 Depreciation Other administrative costs Staff costs Employees Branches 2, % 2, % Dec 10 Dec 11 Dec 10 Dec 11 43

44 Angola: strong volume growth Customer funds Loans to customers (gross) +46.9% 230.7% Overdue loans >90 days coverage ratio 215.6% Overdue loans 1.7% > 90 days ratio 2.4% +8.8% Dec 10 Dec 11 Dec 10 Dec 11 44

45 Strong net income growth driven by revenues and volumes increase, in spite of the ongoing expansion plan Net income % 33.3 Net income rises 41.4% (+52.0% in local currency) ROE of 21.9% Strong growth in revenues, loans and deposits ROE 18.6% 21.9% Ongoing expansion plan GDP growth in Angola remains at high levels: ~3.6% in 2011 (P) and ~10.8% in 2012 (P) * Banking income Operating costs % % * Source: Government, National Bank of Angola, International Monetary Fund 45

46 Strong increase in core income and operating costs in line with expansion plan, with improvement in efficiency Net interest income % 63.1 Operating costs % Cost-to-income ratio 54.7% -0,8 pp 53.9% Commissions +9.2% Depreciation Other administrative costs Staff costs Employees Branches +25.1% % 61 Dec 10 Dec 11 Dec 10 Dec 11 46

47 Agenda Main Highlights Group Capital Liquidity Profitability Pension fund Portugal International operations Conclusions 47

48 Conclusions Capital Liquidity Core tier I increases from 6.7% in December 2010 to 9.4% in December 2011, in spite of the 65% impairment of the Greek public debt Deleveraging proceeding: gross loans to customers decline by 6.4%, while customer deposits increase 4.2%, reducing the loan to deposit ratio (BoP)* from 164% in December 2010 to 145% in 2011 Future annual refinancing needs are lower than in the past (more than half of the debt for 2012 already repaid) Accumulated net income reaches -786 million euros, penalized by exceptional negative items for a total amount close to 1 billion euros (sovereign debt, transfer of pension fund and reinforcement of impairment charges) Profitability Strong increase of the main international operations (Poland, Mozambique and Angola) with a 49.7% growth, reaching a net income of 236 million euros Core income improvement: net interest income up by 4.1% and banking commissions up by 1.0%, in spite of the macroeconomic environment Cost containment, excluding specific items (including the impact of the transfer of the pension fund): operating costs decrease by 2.3% on an annual basis 4 Pension fund Reinforcement of impairment charges by +86.7% in 2011 and high level of provisioning Transfer of the pension fund to the Social Security allowed for a reduction in liabilities by approximately 50%, which will translate in lower risk and costs with pensions going forward * According to instruction no. 23/2011 from the Bank of Portugal (calculated with net loans and customer deposits) Note: the previously disclosed financial statements were adjusted, on a proforma basis, due to the accounting change for OCI (Other Comprehensive Income) of the pension fund liabilities and the reclassification of securities impairment from trading income to other impairment and provisions 48

49 Annexes 49

50 Public debt exposure * Portugal Greece Ireland Poland Others Total Trading book < 1 year > 1 year Banking book 4, ,162 < 1 year 1, ,709 > 1 year 2, ,453 Total 4, ,844 < 1 year 1, ,256 > 1 year 2, ,589 Of the Portuguese debt exposure, 0.6bn are in trading book (mark-to-market) and banking book has 2.6bn with over 1 year maturity * Net of impairments 50

51 Income statement YoY Net interest income % Commissions % Net trading income <-100% Dividends, equity acc. earnings and other income <-100% Banking income 1, , % Staff costs % Other administrative costs % Depreciation % Operating costs , % Operational profit before impairment 1, % Loans impairment (net of recoveries) ,136.7 >100% Other impairment and provisions >100% Income tax and non-controlling interests >100% Net income <-100% Includes specific items: Mark-to-market of Portuguese public debt -128M Disposal of loans and commercial paper -103M Contribution to the banking sector -32M Transfer of the pension fund +165M Loans impairment from Special Inspections program +381M Greece goodwill impairment +147M Greek public debt impairment +451M Note: the previously disclosed financial statements were adjusted, on a proforma basis, due to the accounting change for OCI (Other Comprehensive Income) of the pension fund liabilities and the reclassification of securities impairment from trading income to other impairment and provisions 51

52 Client satisfaction at record levels, with lower customer claims Marktest index Customer satisfaction index BCP 75.6 Basis 100 (index points) Bank =100 Bank Q11 Source: customer satisfaction survey Level of customer claims Bank = Bank Source: Marktest (CSI Bank s Index, 2 nd phase 2011 )

53 Main Awards in 2011 (Portugal) Portugal Best Bank in Portugal Best Bank in Real Estate Best Private Bank Best Management Report in 2010 MicroFinance Recognition Award in the category of Commitment to social and financial transparency to Millennium bcp Microcredit Deal of the Year 2010 to Project ELOS, of which Millennium bcp is shareholder and financial advisor Most Innovative Bank in Portugal to ActivoBank Best Consumer Internet Bank in Portugal, Best Integrated Consumer Bank Site, Best Web Site Design and Best in Mobile Banking in Europe to ActivoBank Millennium bcp brand awarded as the Most Valuable among the Portuguese private owned banks Millennium bcp and Médis brands distinguished as Brands of Excellence Trustworthy Brand 2011 in Health Insurance to Medis Best Insurance Company in 2011 in Portugal to Millenniumbcp Ageas EmeaFinance Euromoney Euromoney APCE Microfinance Euromoney World Finance Global Finance Brand Finance Superbrands Portugal Selec. Readers Digest World Finance 53

54 Main Awards in 2011 (International operations) Mozambique Angola Poland Bank of the Year 2011 Best Bank in Mozambique Best Banking Group in Mozambique 2011 Best Bank in Mozambique Best Local Bank in Africa Excellence Brand Best Brand in Mozambique in the banking sector" Bank of the Year 2011 Best Banking Group in Angola 2011 Best Bank in Angola Most Innovative Bank Excellence Brand Best Bank for Companies and award of Five Stars distinction to Bank Millennium Integration in the Respect Index Best Advertising in Social Networks Best Sustainability Deal 2010 to the Wind Project Margonin, financed under project finance by Bank Millennium in Poland, with Millennium Investment Bank as financial advisor Top 3 in terms of quality service offered to customers, ranking third in the Traditional Customer's Friendly Bank and Best Internet Bank categories Best card to Millennium Visa Impresja in the Best New Customer Proposition category Millennium MasterCard World Signia card ranked first on value-added services and high spending limit categories Special Award to Dobre Konto current account and to its debit card in the innovative cards category The Banker Global Finance World Finance EmeaFinance African Banker Superbrands GFK The Banker World Finance Euromoney EmeaFinance Superbrands Forbes Warsaw Stock Exchange Media & Marketing EmeaFinance Newsweek Friendly Banks Visa Europe Forbes Publi-News Greece Roménia Excellence award 2010 EUR Straight Through Processing Effie Award for the mortgage loans campaign Happiness Best advertising campaign for promoting usage of the advantages attached to its debit and credit cards Deutsche Bank Effie Visa Romania 54

55 Greece: impact of Greece's economic condition Net Income Banking income Operating costs % % FY 2011 net losses stood at 3.5 million euros Net interest income at 61.8 million euros (excluding the impact of the repurchase of bonds in the amount of million euros), 51.5% lower than the previous year, reflecting intense competition for deposits Commissions down by 25.1% from 2010, mainly due to the slowing down of new loans and lower custody fees Operating costs down by 3.9%, excluding non recurrent costs related to the closure of 35 branches and voluntary exit scheme (10.2 million euros) Mortgage Consumer Companies Loans to customers (gross) Customer funds * -5.0% 5,123 4,865 2,101 2, ,376 2,272 Dec 10 Dec 11 Branches % 3,206 2,983 Dec 10 Dec 11 Employees 1,470 1,212 Impairment charges up by 89.5 million euros in 2011, an increase of 62.2% from 2010 Dec 10 Dec 11 Dec 10 Dec 11 * Values presented exclude securities custody 55

56 Romania: improvement of core income and loans volumes growth Net income Banking income Operating costs % % Net income improved by 24% versus 2010, boosted by revenues increase Strong cost base containment policy, in spite of the closure of 8 branches Loans to customers (gross) Customer funds +15.6% -2.8% Loans to customers growth subject to clearly conservative risk criteria Deposits evolution conditioned by net interest income protection. The Bank decided to reduce the interest rates offered on time deposits in a negative spreads context. Dec 10 Dec 11 Branches Dec 10 Dec 11 Employees Dec 10 Dec 11 Dec 10 Dec 11 56

57 Financial Statements 57

58 Consolidated Balance Sheet and Income Statement Assets jan 2010 Cash and deposits at central banks 2,115,945 1,484,262 2,244,724 Loans and advances to credit institutions Repayable on demand 1,577,410 1,259, ,552 Other loans and advances 2,913,015 2,343,972 2,025,834 Loans and advances to customers 68,045,535 73,905,406 75,191,116 Financial assets held for trading 2,145,330 5,136,299 3,356,929 Financial assets available for sale 4,774,114 2,573,064 2,698,636 Assets with repurchase agreement ,858 50,866 Hedging derivatives 495, , ,848 Financial assets held to maturity 5,241,963 6,744,673 2,027,354 Investments in associated companies 305, , ,846 Non current assets held for sale 1,104, ,772 1,343,163 Investment property 560, , ,856 Property and equipment 624, , ,818 Goodwill and intangible assets 251, , ,995 Current tax assets 52,828 33,946 24,774 Deferred tax assets 1,545, , ,914 Other assets 1,790, ,446 1,134,132 Liabilities 93,544,549 98,546,755 94,242,357 Amounts owed to credit institutions 17,723,419 20,076,556 10,305,672 Amounts owed to customers 47,516,110 45,609,115 46,307,233 Debt securities 16,236,202 18,137,390 19,953,227 Financial liabilities held for trading 1,478,680 1,176,451 1,072,324 Other financial liabilities at fair value through profit and loss 2,578,990 4,038,239 6,345,583 Hedging derivatives 508, ,473 75,483 Non current liabilities held for sale ,832 Provisions for liabilities and charges 246, , ,120 Subordinated debt 1,146,543 2,039,174 2,231,714 Current income tax liabilities 24,037 11,960 10,795 Deferred income tax liabilities 2, Other liabilities 1,647,208 1,264,119 1,358,210 Equity (Thousands of Euros) Total Liabilities 89,107,706 92,935,154 88,329,609 Share capital 6,065,000 4,694,600 4,694,600 Treasury stock (11,422) (81,938) (85,548) Share premium 71, , ,122 Preference shares 171,175 1,000,000 1,000,000 Other capital instruments 9,853 1,000,000 1,000,000 Fair value reserves (389,460) (166,361) 93,760 Reserves and retained earnings (1,241,489) (1,868,780) (1,326,491) Profit for the year attributable to Shareholders (786,151) 344,457 - Total Equity attributable to Shareholders of the Bank 3,889,228 5,114,100 5,568,443 Non-controlling interests 547, , ,305 Total Equity 4,436,843 5,611,601 5,912,748 93,544,549 98,546,755 94,242, (Thousands of Euros) Interest income 4,060,136 3,477,058 Interest expense (2,480,862) (1,960,223) Net interest income 1,579,274 1,516,835 Dividends from equity instruments 1,379 35,906 Net fees and commission income 789, ,581 Net gains / losses arising from trading and hedging activities 204, ,280 Net gains / losses arising from available for sale financial assets 3,253 72,087 Other operating income (22,794) 17,476 2,554,863 2,821,165 Other net income from non banking activity 26,974 16,550 Total operating income 2,581,837 2,837,715 Staff costs 953, ,168 Other administrative costs 584, ,845 Depreciation 96, ,231 Operating costs 1,634,218 1,543, ,619 1,294,471 Loans impairment (1,331,910) (713,256) Other financial assets impairment (468,066) (10,180) Other assets impairment (128,565) (71,115) Goodwill impairment (160,649) (147,130) Other provisions 13, Operating profit (1,127,592) 353,425 Share of profit of associates under the equity method 14,620 67,661 Gains / (losses) from the sale of subsidiaries and other assets (26,872) (2,978) Profit before income tax (1,139,844) 418,108 Income tax Current (66,858) (54,158) Deferred 506,404 39,814 Profit after income tax (700,298) 403,764 Attributable to: Shareholders of the Bank (786,151) 344,457 Non-controlling interests 85,853 59,307 Profit for the year (700,298) 403,764 Earnings per share (in euros) Basic (0.13) 0.05 Diluted (0.13) 0.05 Note: the previously disclosed financial statements were adjusted, on a proforma basis, due to the accounting change for OCI (Other Comprehensive Income) of the pension fund liabilities and the reclassification of securities impairment from trading income to other impairment and provisions 58

59 Consolidated Income Statement (Quarterly Evolution) For the 12 month periods ended 31 December, 2010 and 2011 Quarterly Year-to-date 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 Dec 10 Dec 11 Δ % 11 / 10 Net interest income , , % Dividends from equity instruments % Net fees and commission income % Other operating income <-100% Net trading income % Equity accounted earnings % Banking income , , % Staff costs % Other administrative costs % Depreciation % Operating costs , , % Operating profit bef. imp , % Loans impairment (net of recoveries) , % Goodwill impairment % Other impairm. and provisions >100% Profit before income tax , ,139.8 <-100% Income tax <-100% Non-controlling interests % Net income <-100% Note: the previously disclosed financial statements were adjusted, on a proforma basis, due to the accounting change for OCI (Other Comprehensive Income) of the pension fund liabilities and the reclassification of securities impairment from trading income to other impairment and provisions 59

60 Consolidated Income Statement (Portugal and International operations) For the 12 month periods ended 31 December, 2010 and 2011 International operations Group P ortugal Total Bank M illennium (P oland) M illennium bim (M o z.) M illennium Bank (Greece) Other int. operations D ec 10 D ec 11 Δ % D ec 10 D ec 11 Δ % D ec 10 D ec 11 Δ % D ec 10 D ec 11 Δ % D ec 10 D ec 11 Δ % D ec 10 D ec 11 Δ % D ec 10 D ec 11 Δ % Interest income 3,477 4, % 2,322 2, % 1,155 1, % % % % % Interest expense 1,960 2, % 1,338 1, % % % % % % Net interest income 1,517 1, % % % % % % <-100% Dividends from equity instruments % % % % % % % Intermediation margin 1,553 1, % 1,019 1, % % % % % <-100% Net fees and commission income % % % % % % % Other operating income <-100% <-100% % -2-5 <-100% % 2-2 <-100% 0-1 <-100% Basic income 2,395 2, % 1,615 1, % % % % % <-100% Net trading income % <-100% % % % 0 8 >100% >100% Equity accounted earnings % % Banking income 2,902 2, % 1,977 1, % 926 1, % % % % % Staff costs % % % % % % % Other administrative costs % % % % % % % Depreciation % % % % % % % Operating costs 1,543 1, % 925 1, % % % % % % Operating profit bef. imp. 1, % 1, % % % % >100% % Loans impairment (net of recoveries) 713 1, % 557 1,137 >100% % % % % % Goodwill impairment % % Other impairm. and provisions >100% >100% % % 5-1 <-100% % 4 0 <-100% P rofit before income tax 418-1,140 <-100% 281-1,402 <-100% % % % >100% -9 5 >100% Income tax <-100% <-100% % % % -6 8 >100% 1-3 <-100% Non-controlling interests % % % % 0 0 <-100% % Net income <-100% <-100% >100% % % % % Note: the previously disclosed financial statements were adjusted, on a proforma basis, due to the accounting change for OCI (Other Comprehensive Income) of the pension fund liabilities and the reclassification of securities impairment from trading income to other impairment and provisions 60

61 Investor Relations Division: Rui Coimbra, Head of Investor Relations Francisco Pulido Valente João Godinho Duarte Tl: Banco Comercial Português, S.A., a public company (sociedade aberta) having its registered office at Praça D. João I, 28, Oporto, registered at the Commercial Registry of Oporto, with the single commercial and tax identification number and the share capital of EUR 6,064,999,986 61