Earnings Presentation FY 2010 - ind.millenniumbcp.pt · Earnings Presentation FY 2010 (Eurmillion ) Net interest income Portugal International operations Consolidated Strong increase

2

Earnings Presentation FY 2010

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.

• The figures for 2009 and 2010 were subject to an audit by External Auditors.

3


Summary of 2010

Operating costs remain stable in Portugal. Cost to income improves in 2010 to 51.3% in Portugal and to 56.3% on a consolidated basis

Tier I ratio reaches 9.2%, calculated according to IRB methodology, approved by BoP

Customer funds grew 1.6% YoY and 0.9% QoQ, with an increase of on-balance sheet customer funds. Loans to customers stable (-0.7% YoY), with an annual growth of 7.3% in international operations

Net income reaches 301.6 million euros in 2010, up 33.9% from 2009, boosted by international operations contribution which increases 353% to 51.8 million euros

Liquidity: significant increase of assets discountable in central banks to 20.6 billion euros

Banking income up by 16%, driven by core income growth on a quarterly and yearly basis in Portugal and in international operations. Net interest income up by 13.7% and commissions by 10.9%

Proposal to be submitted to the AGM to distribute new shares to the shareholders, for a total amount of 120 million euros

4


427 564

1,5171,334

812732

2009 2010

Highlights of 2010

Net income Banking income

Cost-to-income *International operations contribution to net income

+33.9 %

5%

17%

2009 2010

OtherCommissionsNII

+16.0% 2,8922,493

+10.9%

+13.7%

60.2%58.5%

54.0%51.3%

63.6%58.6%

60.3%

56.3%

2007 2008 2009 2010

(Eur million)(Eur million)

225.2 301.6

2009 2010

Portugal

Consolidated

* On a comparable basis, excluding specific items

5


5.6%

6.7%

Sep 10 Dec 10

2,1462,506

2009 2010

26.4 25.1

2009 2010

-1.3

1.0

7.310.6

17.820.6

2007 2008 2009 3Q10 2010

2.8% 3.3%

Core Tier I Commercial gap

Eligible assets in central banksBalance sheet impairment charges

% total gross loans

(Eur million)

(Eur billion)

(Eur billion)

Highlights of 2010

6


Proposal to be submitted to the Annual General Meeting

� High degree of

uncertainty

related to the

evolution of

international

financial markets

and of the

Portuguese

economy

� More demanding

requirements

under the new

Basel III Agreement

Attribution of new shares to shareholders through incorporation of reserves:

� Total amount of 120 million euros

Framework

� Effective

reinforcement

of own funds

� Balance

between the

interest of

shareholders

and the

decision to

preserve the

capital base

and liquidity

ProposalRationale

7


Net income reaches 301.6 million euros

Net income

(Eur million)

Portugal

International operations

Consolidated

Specific items in 2009: accounting gain from the entry of new shareholders in Banco Millennium Angola's share capital, amounting to 21.2 million euros and the gain from the sale of assets of 57.2 million euros and early retirements costs of 2.9 million euros (net of taxes)Specific items in 2010: impairment in the Greek operation goodwill, amounting to 147.1 million euros accounted in the second and fourth quarters and the gain from the sale of Eureko’s stake in 4Q10 of 65.2 million euros and early retirements costs of 7.7 million euros (net of taxes)

249.8213.8

2009 2010

51.8

11.4

2009 2010

+16.9%

+352,7%

301.6

225.2

2009 2010

+33.9 %

8


16,009 16,889 16,254

45,822 45,319 45,609

4,686 5,7334,763

67,59666,97166,516

Dec 09 Sep 10 Dec 10

Customer funds increase QoQ and YoY, with higher balance sheet customer funds

Customer funds *

Other BS customer funds

Deposits

Off BS customer funds

Consolidated(Eur million)

* On a comparable basis: excluding Turkey and USA, in accordance with the sale of these subsidiaries

Versus Dec 09

+0.9%

+1.5%

+22.3%

-0.5%

+1.6%

Balance sheet

customerfunds

+2.5%

9


28,964 30,014 31,036

42,888 41,797 40,529

5,0824,8464,827

76,41176,63876,935


Loans to customers in line with business cycle

Loans to customers (gross)*

Mortgage

Consumer loans

Loans to companies



Versus Dec 09-0.7%

-0.3%

+7.2%

-4.7%

-5.5%

10


Consolidated

Income statement

(Eur million)

1) Includes in 2010 gain from the sale of Eureko’s stake of65.2 million euros

(2) Includes in 2009 accounting gain from the entry of new shareholders in Banco Millennium Angola's share capital, amounting to 21.2 million euros and the gain from the sale of assets of 57.2 million euros

(3) Includes in 2009 and 2010 early retirement costs of 3.9 and 10.4 million euros (2.9 and 7.7 million euros, net of taxes), respectively

(4) Includes in 2010 impairment for the goodwill of Millennium bank in Greece, amounting to 147.1 million euros

2009 2010 YoY

Net interest income 1,334.2 1,516.8 13.7%

Commissions 731.7 811.6 10.9%

Net trading income (1) 225.4 429.2 90.4%

Dividends, equity acc. earnings and other income (2) 201.9 134.4 -33.4%

Banking income 2,493.2 2,892.0 16.0%

Staff costs (3) 865.3 891.3 3.0%

Other administrative costs 570.2 601.8 5.6%

Depreciation 104.7 110.2 5.2%

Operating costs 1,540.3 1,603.3 4.1%

Operational profit before impairment 952.9 1,288.7 35.2%

Loans impairment (net of recoveries) 560.0 713.3 27.4%

Other impairment and provisions (4) 97.4 217.6 >100%

Income tax and minorities 70.3 56.2 -20.0%

Net income 225.2 301.6 33.9%

11


Banking income growth and costs under control

Banking income * Operating costs


* Includes net interest income, commissions, net trading income, dividends, other income and equity accounted earningsNote: 2009 and 2010 staff costs include early retirement costs of 3.9 and 10.4 million euros (2.9 and 7.7 million euros, net of taxes), respectively

1,540.3 1,603.3

2009 2010

2,493.22,892.0

2009 2010

+16.0%

+4.1%

12


Cost-to-income ratio *

Portugal

Consolidated

* On a comparable basis, excluding specific items

Efficiency improvement

58.5%

64.2%

59.7%

54.0%

60.2%

51.3%

60.3%61.2%

64.7%

56.3%

63.6%

58.6%

2005 2006 2007 2008 2009 2010

13


(Eur million)

Net interest income

Portugal


Consolidated

Strong increase of net interest income in Portugal and in international operations

NIM

1,516.81,334.2

2009 2010

+13.7%

1.68%1.57%

253.1210.7285.1235.2215.9

4Q09 1Q10 2Q10 3Q10 4Q10

+32.1%

133.7129.9140.0129.2120.1

4Q09 1Q10 2Q10 3Q10 4Q10

+16.5%

+12.6%

+4.7%

14


Consistent net interest income recovery

Quarterly net interest income

(Eur million)

Consolidated

NIM

444.4364.4

340.6336.0322.6301.8

373.8

425.1386.8

2.11%

1.80%

1.43% 1.49%1.56% 1.58% 1.64% 1.67%

1.84%

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

+9.9%

15


Net interest margin improves in Portugal and in international operations

Net interest margin (%)


Portugal

Consolidated1.56 1.58

1.841.671.64

1.491.43

1.80

2.11

2.68

1.81 1.752.18

2.43

1.621.431.42

1.91 1.79

1.32 1.26 1.32 1.30

2.552.28 2.41 2.30

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

16


Commissions growth in Portugal and in international operations

(Eur million)

Portugal


Consolidated

Banking commissions

Market-related commissions

Commissions

+10.9% 572.2521.8

2009 2010

239.4209.9

2009 2010

+9.7%

+14.0%

607.6 662.4

124.1149.2

731.7811.6

2009 2010

+20.2%

+9.0%

17


Sustained commissions growth

Commissions

Banking commissions


Consolidated

(Eur million)

+6.0%

138.5 151.0 153.9164.2 159.7 164.3 162.6 175.7

30.2 26.933.2

33.8 42.4 38.5 34.234.0168.7

187.1202.8 209.8202.2198.0

177.9

196.8

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

+6.6%

18


Core income recovery

Core income = Net interest income and Commissions

Consolidated

Net interest income

Commissions

(Eur million)

373.8301.8 322.6 336.0 340.6

364.4 386.8425.1

168.7177.9 187.1

198.0 202.2202.8 196.8

209.8

542.5479.7

634.8

509.7

583.6567.2542.8534.0

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

+18.9%

+8.8%

19


Costs under control

Operating costs

Portugal


Depreciation

Other administrative costs

Staff costs

(Eur million)

Consolidated

104.7 110.2

865.3 891.3

570.2 601.8

2009 2010

+5.2%

+5.6%

+3.0%

+4.1%

978.7 985.4

2009 2010

617.9561.6

2009 2010

1,540.3

+0.7%

+10.0%

1,603.3

Note: 2009 and 2010 staff costs include early retirement costs of 3.9 and 10.4 million euros (2.9 and 7.7 million euros, net of taxes), respectively

�Cost base maintenance

�Expansion in Africa

�Recovery in Poland

20


1,8042,379 2,290

216

210197

2,5002,576

2,020


Impairment charges reinforced, anticipating macroeconomic challenges in Portugal and Greece: impairment coverage increases versus 3Q10

Overdue >90 days coverage

Overdue loans ratio > 90 days

(Eur million)Credit quality Impairment charges

< 90 days > 90 days

Consolidated

Total overdue loans*


109.4%119.0%

2.3% 3.0%

100.2%

3.1%

560.0

164.8 219.4 165.7 163.4

713.3

2009 1Q10 2Q10 3Q10 4Q10 2010

72 pb 93 pb

� Overdue loans ratio for more than 90 days increased to 3.0% in 2010, reflecting the deterioration of the

macroeconomic situation in Portugal, although showing a lower increase than in 2009

� The trend in 4Q10 shows an improvement of the overdue loans ratio for more than 90 days versus the previous

quarter, with lower new entries of overdue loans and higher recoveries

� Strong provisions reinforcement in 2010, maintaining a coverage ratio of overdue loans for more than 90 days above

100%. Coverage ratio of overdue loans for more than 90 days increased from 100.2% in 3Q10 to 109.4% in 4Q10

Impairment charges net of recoveries as % of total

loans

21


0.57

0.75

0.64

0.49

0.61

0.830.77

1.020.97

0.39

0.71

0.22

0.55

0.30

0.460.40

0.72

0.26

0.980.93

0.21

0.48

0.69

0.95

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 6M10 2010

Cost of risk increases, anticipating the economic cycle

Impairment charges as % of total loans (accumulated annualized figures)

Average = 0.47

Grossimpairment

charges as % oftotal loans

Impairment charges net of recoveries as % of total loans

22


Millennium bcp presents one of the best provisioning levels among Iberian banks

On balance sheet total loans impairment as loans %

Source: Banks’ reports, 4Q10 when already disclosed, otherwise 3Q10

3.28% 3.38%

2.84%2.77%

3.04%

2.46%

1.91%

2.66%

1.93%

1.40%

3.16%

Bank 11 Bank 10 Bank 9 Bank 8 Bank 7 Bank 6 Bank 5 Bank 4 Bank 3 BCP Bank 1

23


8.5% 9.2%9.3%

5.6% 6.7%6.4%

Tier I ratio reaches 9.2%

Solvency ratio Consolidated



� Phase 2 of IRB (Companies, Poland)

� Deleveraging � RWAs optimization� Sale of non-core assets� Organic capital generation� Evaluation of new strategic

partnerships and capital management alternatives

� Capital discipline

Capital plan – levers

� Increase of CT1 to 6.7% and T1 to 9.2%, using IRB method

� Sale of Turkey, USA and Eureko� RWAs reduction� Dividend retention� Negative actuarial deviations

(468M€ in 2010, 103M€ in 2H10)

2010

10.2%

62,107

10.3%

59,564

11.5%

65,769

Core Tier I

Tier I

RWA (M€)

Total ratio

Standard Standard IRB

Clear and defined capital plan to top the new Basle III Agreement requirements

Note: the Bank received authorization from the Bank of Portugal (BoP) to adopt IRB methods for the calculation of own funds requirements for credit risks, as from 31 December 2010. Estimates of the probability of default and the lost given default (IRB Advanced) for the retail small companies exposures collateralized by commercial or residential real state, and estimates of the probability of default (IRB Foundation) for the corporate portfolio were considered in Portugal, excluding real estate promotion segment and simplified rating system. At the 1st semester of 2009, the Bank received authorization from BoP to adopt the advanced methods (internal model) to the generic market risk and standard method for the operational risk

24


Pension liabilities coverage of 104%

* Includes the amount registered in balance sheet

�Pension liabilities coverage of 104%

�Future pension liabilities transferred to Social Security from January 1, 2011

�Actuarial losses of 468 million euros in 2010 (365 million euros in 1H10)

� Return of pension funds of –5.5% in 2010

� Change in pension growth rate actuarial assumption to 1.5%

�Equity exposure of 23% in 2010

2006 2007 2008 2009 2010

Pension liabilities 5,715 5,879 5,723 5,410 5,322

Pension fund 5,578 5,616 5,322 5,530 5,149

Liabilities' coverage* 105% 102% 100% 109% 104%

Fund's profitability 11% 4% -14% 9% -6%

Actuarial differences 1,240 1,353 2,140 1,514 1,921

Corridor 572 588 572 553 532

Outside the corridor 668 765 1,568 961 1,389

Actuarial gains (losses) 157 (160) (827) 557 (468)

Contribution to the Fund 291 94 777 12 205

% Equities in the Pension Fund 49% 35% 20% 22% 23%

(Eur million)

25


5.2

4.9

6.6

2.7

10.1

2009* 2010 Total

MLT refinancing in 2010Pre-funding, issues and deleveraging

(Eur billion) Consolidated

Refinancing needs of medium and long term debt

Issued in 2010

Issued in 2009**

MTNJan10: €0.8bnMar10: €0.3bn

Private Placements€1.6bn

9.3

26.4 26.6

25.1

2009 9M10 2010

152%Loan-to-Deposit 149%153%

Commercial Gap

-1.3

Already repaid

* Includes 0.5 billion euros of bonds that were early redeemed** Includes the issue of 1 billion euros of Subordinated Perpetual Securities (June, August and December 2009)Loans-to-Deposit: loans to costumers (gross) divided by customers funds from balance sheet (unit linked products)

26


Liquidity plan

Refinancing needs of long term debt

Ex-private placements Private placements

(Eur billion)

� Reduction of commercial gap and

loan-to-deposit ratio

� Commitment with wholesale

market refinancing

� Diversification of funding sources

� Reinforcement of eligible assets

with central banks to ~€25 billion

� Coverage of refinancing needs

until 2011

Eligible assets with central banks

Utilized Free

Financing structure (Eur billion)

3.0 2.9

16.1 14.94.3

7.7

1.9

~25

5.7

7.3

10.6

18.020.6

~1

2007 2008 2009 Jul 10 2010 2011E

2.3

1.0

3.5

0.41.3

1.9

0.3

4.03.9

2011 2012 2013 2014 2015 Jul-05 2017 >2018

51.3

16.41.9

14.9

7.3

Deposits and equivalent

MLT institutional debt

ST institutional debt

ECB

Own capital

Reduction in Portugal from 15.8 b€ in July to 14.3 b€ in December

27


� Portugal

� International operations

� Conclusions

28


Income statement

(Eur million)

2009 2010 YoY

Net interest income 917.7 984.1 7.2%

Commissions 521.8 572.2 9.7%

Net trading income (1) 65.0 284.0 >100%

Dividends, equity acc. earnings and other income (2) 192.4 126.0 -34.5%

Banking income 1,697.0 1,966.3 15.9%

Staff costs (3) 604.3 599.0 -0.9%

Other administrative costs 314.3 331.9 5.6%

Depreciation 60.0 54.5 -9.2%

Operating costs 978.7 985.4 0.7%

Operational profit before provisions 718.3 980.9 36.6%

Loans impairment (net of recoveries) 390.7 556.7 42.5%

Other impairments and provisions (4) 92.8 203.2 >100%

Income tax and minorities 21.0 -28.7

29


Customer funds grew on a quarterly and yearly basis, with higherbalance sheet customer funds

Customer funds

Other BS customer funds

Deposits

Off BS customer funds

(Eur million)

Versus Dec 09

+2.7%

+21.4%

-3.3%

14,804 15,595 15,198

31,378 30,413 30,333

4,622 5,6124,668

51,14350,67650,803


+0.9%

+0.7%

Balance sheet

customerfunds

+2.5%

30


Loans to customers in line with business cycle and deleveraging policy

Loans to customers (gross)

Mortgage

Consumer loans

Loans to companies

Versus Dec 09

(Eur million)

-2.8%

21,518 21,885 22,533

35,802 34,684 33,461

3,3042,922

3,005

58,91759,57360,625


-1.1%

+4.7%

-11.6%

-6.5%

31


Growth in banking income and strict cost containment

(Eur million)

Banking income* Operating costs

* Includes net interest income, commissions, net trading income, dividends, other income and equity accounted earnings

978.7 985.4

2009 2010

1,697.01,966.3

2009 2010

+15.9%

+0.7%


32


Net interest income and net interest margin recovery

Net interest income

(%, Eur million)

� On an annual basis margin penalised by

steep decrease of market interest rates

� Vs. 4Q 10:– Maintenance of interest rates decrease

– Margin penalized by base rate effect

– Unfavourable sazonality, -2 interest

days

– Improvement of customer spreads

Euribor 3 months (%, quarterly average)

NIM

� Recovery of NII from steep fall of interest rates impact during 2009

� Versus 3T10:– interest rates maintains its upward trend – deposit margin deterioration in 4Q; total

cost in 2010 only slightly better than 2009– credit repricing continues– deleveraging penalizes credit margin– increase of securities portfolio during 2010

within the scope of central banks eligible asset management policy

210.7235.2

253.1

285.1

215.9

1.30%

1.42% 1.43%

1.62%

1.32%

4Q09 1Q10 2Q10 3Q10 4Q10

0.87

0.660.72

1.02

0.69

4Q09 1Q10 2Q10 3Q10 4Q10

33


Portfolio

New production

Portfolio

� Period of repricing of corporate portfolio (57% of total loans) up to 3 years. New production

spreads 1.6 pp above 2008.

� Mortgage portfolio (38% of loans) cannot be repriced. New production booked with higher

spreads

Loans repricing contributed to net interest income increase

Corporate

(contractual spread, %)

Mortgage

(contractual spread, %)

1.641.71 1.74

1.79

1.962.06

2.202.30

2.402.49

2.642.77

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

0.83 0.93 0.89 0.881.11

1.61

2.222.04 2.00

2.54

0.99 0.98 0.96 0.94 0.95 0.96 0.98 1.00 1.02 1.04 1.061.08

2.37

1.94

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

34


(Eur million)

Recovery in commissions YoY and QoQ

2009 2010 YoY 4Q09 3Q10 4Q10

Banking commissions 456.8 496.3 8.7% 122.6 127.2 132.5 8.1% 4.2%

Cards 112.8 105.7 -6.3% 27.8 26.7 28.2 1.6% 5.7%

Loans and guarantees 136.3 147.0 7.8% 34.2 40.2 39.5 15.5% -1.7%

Bancassurance 59.7 74.3 24.4% 18.4 18.5 18.5 0.2% -0.3%

Other commissions 147.9 169.4 14.5% 42.2 41.8 46.3 9.8% 10.8%

Market related commissions 65.1 75.9 16.6% 16.1 16.6 15.4 -4.4% -7.5%

Securities operations 40.9 50.4 23.2% 9.7 10.0 9.1 -6.7% -9.1%

Asset management 24.2 25.5 5.6% 6.3 6.6 6.3 -0.8% -5.0%

Total commissions 521.8 572.2 9.7% 138.6 143.8 147.8 6.6% 2.8%

4Q10/

4Q09

4Q10/

3Q10

35


101.0117.9 115.3 122.6 114.1 122.5

127.2 132.5

18.3

13.7 16.916.1 24.2

19.7 16.615.4

119.3132.2

142.3147.8

138.3138.6131.7

143.8

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

Commissions growth in Portugal supported by banking activity

Banking commissions


(Eur million)

Commissions

+6.6%

+2.8%

36


Stable operating costs in Portugal

(Eur million)

Operating costs

Depreciation

Staff costs


60.0 54.5

599.0604.3

331.9314.3

978.7 985.4

2009 2010

-9.2%

+0.7%

-0.9%

+5.6%


� Increase in other administrative costs mainly driven by additional effort in credit recovery

� Staff costs benefit from decrease in pensions costs and include 10.4 M€ of early retirement costs (3.9 M€ in 2009)

37


0.82

0.640.71

0.660.64 0.61

0.97 0.940.97

0.991.02

0.650.69 0.71

0.85

1.00

0.69

0.83

2008 3M09 6M09 9M09 2009 3M10 6M10 9M10 2010

Impairment reinforced, anticipating macroeconomic challenges: impairment coverage increases from 3Q10, to 113%

(%, Eur million)

Grossimpairment

charges as % oftotal loans

Impairmentcharges net ofrecoveries as %of total loans

Credit qualityImpairment charges as % of total loans (accumulated figures, annualized)

< 90 days

> 90 days

Total overdue

loans

1,7091,8381,424

135133

179

1,8421,602

1,973

Dec 09 Set 10 Dec 10

113.3%119.7%

2.3% 2.9%

Overdue loans ratio > 90 days

100.8%

3.1%


38


Client satisfaction at record levels since the launch of the single brand

Client satisfaction index

Basis 100 (index points)

Client satisfaction

Source: Clients satisfaction survey (SGC)

Global client satisfaction

80.4

79.3

78.7

77.7

78.2

79.0

78.1

2004 2005 2006 2007 2008 2009 2010

Global client satisfaction

39


� Portugal


� Conclusions

40


Strong recovery of core international operations

(Eur million)

Net income

+135.4%

2009 2010 YoY

YoY in

local

currency

International operations 11.4 51.8 >100% >100%

Poland 0.3 81.3 >100% >100%

Mozambique 52.0 52.8 1.4% 20.1%

Angola 14.6 23.6 61.4% 79.4%

Greece 9.0 -16.0

41


Poland: sustained profitability improvement

(Eur million)

Net income

Banking income Operating costs

*Net interest income + Net commission incomeExcluding FX effect. Rates €PLN used: Profit and Loss account: 4.00786250; Balance Sheet: 3.9750

� Net profit consistently growing every quarter

during 2010, especially in the last quarter, getting

closer to the pre-crisis level

� Banking income growth (18% YoY), supported by

strong core income* growth (+33% YoY), which in

4Q10 matched the record level from pre-crisis

period of 3Q08

� Operating costs in 2010 9% below 2008 level,

which allowed cost-to-income to reach 60.6% in

4Q10, very close to lowest historical level

81.3

28.0

0.417.0 17.3 19.0

2009 1Q10 2Q10 3Q10 4Q10 2010

270.3255.2

2009 2010

428.2362.8

2009 2010

+18.0%+5.9%

+46.9%

42


Net interest income continues to recover on an annual and quarterly basis

NIM

(Eur million)

Net interest income* NIM evolution*

* Pro-forma data. Margin from all derivatives, including those hedging FX denominated loan portfolio, is presented in Net Interest Income, whereas in accounting terms part of this margin (23.1 M€ in 2009 and 20.5 M€ in 2010) is presented in net trading income

68.658.2 59.9 65.1

252.0

172.4

2009 1Q10 2Q10 3Q10 4Q10 2010

3.00%2.97% 2.93%2.96% 2.98%

-0.20%-0.12%

0.03%0.13%

-0.11%

4Q09 1Q10 2Q10 3Q10 4Q10

2.2% 2.1% 2.4%

+46.1%

2.4%1.9%

+5.3%

� Net interest income* shows a significant improvement, increasing by 46.1% YoY and 5.3% in 4Q10 versus 3Q10

� Gradual increase of net interest margin in spite of strong competition both on loans and deposits products. Net interest margin reached 2.4% in 4Q10 mainly through the improvement of average spreads on deposits

Excluding FX effect. Rates €PLN used: Profit and Loss account: 4.00786250; Balance Sheet: 3.9750

Loans’ margin Deposits’ margin

43


Commissions growth on an annual and quarterly basis

(Eur million)

Net commission income Net commission breakdown

� Net commissions showed a 14.4% increase on an annual basis. The increase was driven by cards, mutual funds, current accounts and loans related fees

� On a quarterly basis, net commissions grew by 7.4% in 4Q10 versus 3Q10 after the stability shown in previous quarter

14,1

6,3

18,7

36,8

17,1

10,1

1,210,5

26,2

Account related

Loans and guarantees

Cards & ATMBrokerage & custody

Bancassurance

Mutual Funds

Other3rd party savings

Transfers

36.336.9 34.0 33.8

140.9123.2

2009 1Q10 2Q10 3Q10 4Q10 2010

+14.4%

+7.4%


44


Operating costs under control, with significant improvement of efficiency

Operating costs

Number of employees

Depreciation


Staff costs

(Eur million)

� Operating costs up by 5.9% but in line with 2010 target announced in the beginning of 2009 (+1%)

� Personnel costs increased in 2010 by 11.7%, after 2009 decrease of 22.9%, mostly driven by variable remuneration increase

� Administrative costs grew 1.9 YoY, while depreciation decreased by 4.9%

� Cost-to-income ratio stood at 63.1% in 2010, significantly improving from the 70.4% recorded in 2009

Cost-to-income ratio

20.019.0

131.2117.4

120.0117.8

2009 2010

-4.9%

+1.9%

+11.7%

+5.9% 6,1356,245

2009 2010

-2.0%

70.4% 63.1%-7.3 pp


255.2 270.3

45


Sound customer funds growth and loans to customers growth in allsegments

(Eur million)

* Includes deposits, bank’s bonds sold to individuals and investment products

Customer funds* Loans to customers (net)

729755

2,182 2,227

5,513 6,260

9,2428,424

2009 2010

+9.7%8,884

10,043

Dec 09 Dec 10

+13.0%

+13.6%

+1.7%

+3.6%


Mortgage

Consumer loans

Loans to companies

46


Lower cost of risk

* Impairment charges/ average net loans in the period (in bps, annualized)

Credit quality Impairment charges

(Eur million)

� Net impairment provisions created in 2010 decreased by 48% versus 2009. Cost of risk decreased from 127 bps in 2009 to 65 bps in 2010

� 4Q10 trend showed a more visible reduction of retail portfolio provisions after the significant increase in 3Q10 (mostly connected with unsecured consumer loans). Nevertheless, retail still accounted for 65% of all provisions done in 4Q10

127 bp*

Impairedloans

coverage

Impaired loansratio

Total Impaired

loans

Impairment charges as % of total loans

54%

5.9% 5.8%

511.4 559.9 552.2

Dec 09 Jun 10 Dec 2010

109.0

20.811.7 12.7 11.1

56.2

2009 1Q10 2Q10 3Q10 4Q10 2010

-48.4%

53%

5.9%

54%


65 bp*

47


� Net income rises 20.1% in local currency (+1.4%

in euros)

� ROE reaches 32.3%

� Net income evolution supported on banking

income good performance

� Conservative provisioning policy

� Ongoing expansion plan

� Strong volumes growth

� GDP growth in Mozambique remains at high

levels: ~6.5% in 2010(P) and 7.5% in 2011(P) *

� Average devaluation of metical by 18% in 2010

when compared with 2009

Mozambique: positive net income evolution in spite of expansion plan and exchange rate effect

52.852.0

2009 2010

+1.4%

65.159.6

2009 2010


151.5135.4

2009 2010

+11.9%

+9.3%

Net income

+20% in local currency

(Eur million)

* Source: International Monetary Fund (World Economic Outlook Database, October 2010)

48


Growing trend of net interest income, higher commissions QoQ and efficiency improvement in spite of expansion plan

(Eur million)

Net interest income

Commissions

27.720.6 22.2 25.1

95.684.1

2009 1Q10 2Q10 3Q10 4Q10 2010

+13.8%

+10.4%

6.2

23.9 21.7

4.35.85.4

2009 1Q10 2Q10 3Q10 4Q10 2010

-9.2%



+44.3%

Operating costs

5.9 7.4

29.727.4

28.126.3

2009 2010

+9.3%59.6 65.1

44.0% 43.0%-1.0 pb

116 125

Dec 09 Dec 10

BranchesEmployees

1,936 2,088

Dec 09 Dec 10

+7.9% +7.8%

Depreciation


Staff costs


49


Sustained volume growth, namely on loans to customers, with a low level of delinquency

Customer funds

990.8916.1

Dec 09 Dec 10

+8.2%

24.7

25.5

612.4512.2

215.7166.2

703.1853.6

Dec 09 Dec 10

+21.4%

569%494%

0.9% 0.9%


+3.3%

+29.8%

+19.6%

(Eur million)

Overdueratio > 90 days

Mortgage

Consumer loans

Loans to companies

+12% in local currency +29% in local currency


50


Angola: strong increase in net income driven by revenues and volumes, despite ongoing expansion plan

14.6

23.6

2009 2010

51.340.6

2009 2010

93.8

59.3

2009 2010

� Net income rises 79.4% in local currency (+61.4% in euros)

� Network expansion to 39 branches� Profitability remains high, despite ongoing

expansion (ROE of 18.6%)� Strong revenues, loans and deposits

growth� GDP growth in Angola remains at high

levels: ~5.9% in 2010 (P) and ~7.1% in 2011 (P) *

� Devaluation of kwanza by 11% in 2010 compared with 2009

+61.4%

+58.2%

+26.4%



Net income

(Eur million)


51


Strong increase in core income and operating costs in line with the expansion plan, with strong improvement in efficiency

(Eur million)

16.710.3 10.5 13.5

51.0

26.7

2009 1Q10 2Q10 3Q10 4Q10 2010

4.512.015.9

4.33.93.2

2009 1Q10 2Q10 3Q10 4Q10 2010

3.45.0

19.013.1

27.324.0

2009 2010

+26.4%

40.651.3

68.4% 54.7%-13.7 bp

23 39

Dec 09 Dec 10

499714

Dec 09 Dec 10

+43.1% +69.6%

+90.7%

+23.5%

+32.9%

+5.5%

Net interest income

Commissions

Operating costs

BranchesEmployees

Depreciation


Staff costs


52


Acceleration of the expansion plan

Moxico

CuandoCubango Cunene

Namibe

Huila

Bié

Lunda Sul

Malanje

Uíge Zaire

Cabinda

Luanda

Bengo

Kuanza sul

Kuanza

Norte

Huambo

LundaNorte

Benguela

Moxico


Namibe

Huila

Bié

Lunda Sul

Malanje

Uíge Zaire

Cabinda

Luanda

Bengo

Kuanza sul

Kuanza

Norte

Huambo

LundaNorte

Benguela

Moxico


Namibe

Huila

Bié

Lunda Sul

Malanje

Uíge Zaire

Cabinda

Luanda

Bengo

Kuanza sul

Kuanza

Norte

Huambo

LundaNorte

Benguela

Moxico


Namibe

Huila

Bié

Lunda Sul

Malanje

Uíge Zaire

Cabinda

Luanda

Bengo

Kuanza sul

Kuanza

Norte

Huambo

LundaNorte

Benguela

Moxico


Namibe

Huila

Bié

Lunda Sul

Malanje

Uíge Zaire

Cabinda

Luanda

Bengo

Kuanza sul

KuanzaNorte

Huambo

LundaNorte

Benguela

Moxico


Namibe

Huila

Bié

Lunda Sul

Malanje

Uíge Zaire

Cabinda

Luanda

Bengo

Kuanza sul

KuanzaNorte

Huambo

LundaNorte

Benguela

Moxico


Namibe

Huila

Bié

Lunda Sul

Malanje

Uíge Zaire

Cabinda

Luanda

Bengo

Kuanza sul

Norte

Huambo

LundaNorte

Benguela

Moxico


Namibe

Huila

Bié

Lunda Sul

Malanje

Uíge Zaire

Cabinda

Luanda

Bengo

Kuanza sul

Huambo

Lunda

Norte

Benguela

Kuanza

Target: 100 branchesDecember 2010: 39 branches

16 2339

3 9

100

2006 2007 2008 2009 2010 Target

Number of branches

53


465.2

317.3

Dec 09 Dec 10

Sustained volume growth

593.3

428.9

Dec 09 Dec 10

+38.3%


+46.6%

231%409%

0.6% 1.7%


Customer funds Loans to customers (gross)

(Eur million)

Impairmentcoverage > 90

days

Overdueratio > 90 days

54


Greece: affected by the sovereign crisis

� Net income of –16.0 million euros

� Net interest income of 127.5 million euros (+2% versus 2009) includes gain from liabilities repurchase. Excluding this specific item, net interest income would stand at 100.3 million euros, 20% below 2009, reflecting fierce competition on deposits

� Increase of impairment charges to 55.2 million euros as a result of the increase in credit delinquency and the prospects of macroeconomic situation deterioration

� Overdue loans ratio below sector average

� Slowdown in loan growth affecting commissions (-8.2% versus 2009) and trading gains penalised by difficult market conditions (0.5 million euros in 2010 versus 9.6 million euros in 2009)

� Cost control

Employees

Branches

1,527 1,470

Dec 09 Dec 10

124.1125.8

2009 2010

169.8 160.0

2009 2010

177 155

Dec 09 Dec 10

-16.0

9.0

2009 2010

-5.8%-1.3%

Banking income Operating costsNet income

(Eur million)

(Eur million)

3,473 3,122

135 128

3,2503,607

Dec 09 Dec 10

-9.9%

Deposits

Off balance sheet funds

Customer funds *

* The figures exclude the securities custody

55


33.230.4

25.922.2 21.8

4Q09 1Q10 2Q10 3Q10 4Q10

2.12%1.90%

1.61%1.40% 1.35%

Net interest income penalised by the deterioration of funding conditions and reinforcement of impairment charges

3.98 3.87 3.77 3.70 3.64

-0.89-1.57

-2.15 -1.98-1.18

4Q09 1Q10 2Q10 3Q10 4Q10

Loans spread

Deposits spread

NIM

(%, Eur million)

Net interest income (quarterly)*

Loans and deposits spread

* Excludes impact of repurchase of Kion II bonds

2,015 2,101

2,3762,428

646715

5,157 5,123

Dec 09 Dec 10

Impairment coverage> 90 days

Overdue ratio> 90 days

Loans to companies

Consumer loans

Mortgage


59.8%56.8%

2.5% 4.1%

-0.7%

Net impairment charges as % of total gross loans

1.551.16

0.80

0.37

0.78

4T09 1Q10 2Q10 3Q10 4Q10

56


� Portugal


� Conclusions

57


Strategic view 2011-2013: Focus and Profitability

Focus and Profitability:

Profitability in Portugal and Focus on the European and affinity markets

� Ensure the profitability and efficiency in all segments in Portugal

� Sustain cost cutting effort in Portugal

Profitability in Portugal

� Focus in European markets that sustain a competitive presence and meaningful medium and long term position

� Continue investing in a affinity markets

Focus and affinity in international operations

Sustainability� Optimise capital and liquidity management

� Strict risk control: reinforce prevention, review credit granting, strengthen recovery

Mobilise the organization

58


Focus and Profitability: focus on profitability in Portugal

Core income evolution * Operating costs evolution

... and controlling costsReversing banking income trend...

(Eur million)

* Net interest income and commissions

-5.1%

0.7%

-14.5%

2008 2009 2010

377 397433

349355339344

402

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

59


Focus and Profitability: Increase of core international operations contribution

Net income of core international operations

Poland

Angola Mozambique

(Eur million)

157.7

67.0

2009 2010

14.623.6

2009 2010

+61.4%52.852.0

2009 2010

+1.4%

+135.4%

81.3

0.3

2009 2010

+20% in local currency+79% in local currency

60


5%

17%

2009 2010

15,713 16,453

Dec 09 Dec 10

32.0%

* Excluding Turkey and USA

52.5%

51.3%

Weight in net income

Banking income

Customer funds *

+740(Eur million)

(Eur million)


Portugal

Focus and Profitability: strong growth potential of international operations contribution

Clients100% = 5.2 million

Banking income100% = 2,892 million €

Employees100% = 21,370

Weight of international operations (2010)

Customer funds *100%* = 68 billion €

24.3%

926796

2009 2010

+16.3 %

61


Focus and Profitability: improving prospects for international operations contribution

173.8

67.0

157.7

2008 2009 2010

-23.6-38.0-32.9

2008 2009 2010

GDP growth * Net income in Turkey and USA

Net income in RomaniaNet income of international core operations:

Poland, Mozambique and Angola

-19.8-16.7

-4.3

2008 2009 2010

Operations sold in 2010

Breakeven expected in 2013

13.3%

0.0%1.7%

5.0%3.4% 3.7% 3.9%

7.6%7.5%6.5%6.3%6.7%

6.3%7.1%5.9%

2008 2009 2010 2011 2012

Poland

Mozambique

Angola


(Eur million)

62


The Macau on-shore branch creates the base for a strategic triangle: Europe - Portuguese speaking Africa - China

Guangzhou1 rep office

AngolaPresent since 2006 and experiencing a strong growth39 branches81 thousand clients3% market share in assets

MozambiqueMarket leader, with presence since 1995125 branches864 thousand clients35% market share in assets (1st)

MacauPresent since 19951 branchNet income: 6.7 M€ (+58%)

Source: The market share figures for Portugal, Angola and Mozambique were based on most recent public data, available on Bank of Portugal, National Bank of Angola and Bank of Mozambique, respectively.

Portugal

Largest private bank

892 branches

2,533 thousand clients

21% market share in assets (2nd)

Poland

5th largest bank

458 branches

1,125 thousand clients

63


Summary of Strategic Business Initiatives in 2010

Focus and Profitability - Business

�Net income increases 33.9% to 301.6 M€ in 2010, boosted by international operations and recovery in Portugal

�Banking income increase 16%, with core income increasing 12.7%

�Maintenance of cost control, despite the expansion in Africa and the recovery in Poland

�Refocus in customer funds: customer funds increase 1.6% in 2010, showing strong recovery of balance sheet customer funds, which increased 2.4 mM€ in the 2nd semester

�Portfolio focus: sale of Turkey and USA operations, with negative contribution to income and refocus in Poland, Mozambique and Angola operations

� Improvement in the international operations contribution

– success in Poland’s turnaround – net income increases from 0.3 M€ to 81.3 M€, with the recovery of operating income, cost reduction plan and cost of risk improvement– profitable expansion in Africa: acceleration of expansion plan in Angola and Mozambique, maintaining a high profitability

�Opening of a on-shore branch in Macau, creating a new base for the strategic triangle: Europe / Portuguese speaking Africa / China

�Repricing and initiatives to increase income: net interest margin increases 7.2% and commissions 9.7%

�Costs increase only 0.7% in 2010, after a reduction of 14.5% in 2008 and 5.1% in 2009. Cost-to-income improves to 51.3%

�Refocus on customer funds: customer funds increase 0.7% in 2010 and balance sheet customer funds recovery 1.5 mM€ in the 2nd semester. Loans decrease 2.8%

�New distribution model in retail

�Lauching of an innovative concept of banking – Activobank by Millennium

Focus and affinity in international operations

Transformation and Profitability in Portugal

Profitability improvement

64


Summary of Strategic Sustainability Initiatives in 2010

Focus and Profitability - Sustainability�Reduction of commercial gap in 2010�Medium and long term refinanced in 2010 though re-funding, issues and commercial gap reduction

�Reinforcement of eligible assets with central banks to ~20,6 b€ in 2010�Reinforcement of liquidity plan:

–deleveraging plan and reduction of loan-to-deposits ratio to continue until 2013–commitment with wholesale market refinancing–diversification of funding sources –reinforcement of eligible assets with central banks to €25 b€ in 2011–coverage of refinancing needs until 2011

�Core Tier I increases to 6.7%and Tier I to 9.2%, using the IRB method �Sale of Eureko, Turkey and USA operations�RWAs reduction by optimization and deleveraging�Mitigation of risk in the pension fund: transfer of future liabilities of current workers for Social Security

�Clear and defined capital plan to top the new Basle III Agreement requirements�Strong capital discipline

�Reinforcement of provisions to 3.3% of loans: coverage ratio of overdue loans from more than >90 days stays at 109.4% (113.4% in Portugal)

�Recognition of impairment for the goodwill of 147.1 M€ from Millennium bank in Greece�Portugal: overdue loans >90 days of 2.9% in 2010, increasing less than in 2009, and showing an improvement compared with 3Q10

– Loans to companies portfolio is diversified and without high sector concentration (construction 7.6%, real estate 4.6%), low weight in consumer loans and good quality of mortgage portfolio – No house price boom in Portugal

�Promoting a Culture of Rigor

Capital management

Risk management

Liquidity management

65


Annexes

66


Consolidated

Significant growth in commissions YoY and QoQ

(Eur million)

2009 2010 YoY 4Q09 3Q10 4Q10

Banking commissions 607.6 662.4 9.0% 164.2 162.6 175.7 7.1% 8.1%

Cards 187.3 185.3 -1.1% 48.0 46.1 49.3 2.7% 6.9%

Loans and guarantees 170.3 178.7 4.9% 44.0 44.9 48.3 9.7% 7.5%

Bancassurance 59.7 74.3 24.4% 18.4 18.5 18.5 0.2% -0.3%

Other commissions 190.2 224.2 17.9% 53.7 53.0 59.6 11.1% 12.6%

Market related commissions 124.1 149.2 20.2% 33.8 34.2 34.0 0.7% -0.6%

Securities operations 76.2 96.5 26.7% 20.8 21.1 21.1 1.3% 0.0%

Asset management 47.9 52.6 9.8% 13.0 13.1 12.9 -0.3% -1.6%

Total commissions 731.7 811.6 10.9% 198.0 196.8 209.8 6.0% 6.6%

4Q10/

4Q09

4Q10/

3Q10

67


Staff costs containment in Portugal

(Eur million)

Staff costs

2009 2010 YoY

YoY in

local

currency

Portugal 604.3 599.0 -0.9% -0.9%

Remunerations 469.8 474.3 1.0% 1.0%

Pension costs 134.5 124.7 -7.3% -7.3%

International operations 261.0 292.2 12.0% 9.7%

Poland 107.9 131.2 21.6% 11.7%

Mozambique 27.4 29.7 8.4% 28.4%

Angola 13.1 19.0 45.2% 61.3%

Greece 61.1 59.7 -2.3% -2.3%

Other 51.5 52.6 2.1% -3.2%

Staff costs 865.3 891.3 3.0% 2.3%


68


(Eur million)

Consolidated

Credit portfolio quality and coverage

Credit PortfolioOverdue > 90

days

Overdue > 90

days / total

loans

Overdue > 90

days / total

loans

Coverage

Dec 10 Dec 10 Sep 10 Dec 10

Individuals 644 1.8% 1.8% 86.7%

Mortgage 184 0.6% 0.6% 94.7%

Consumer 460 9.5% 9.2% 83.6%

Corporate 1,646 4.1% 4.2% 118.3%

Services 476 3.0% 3.4% 127.2%

Commerce 293 6.4% 6.4% 86.1%

Construction 423 8.3% 8.6% 71.0%

Others 454 3.1% 3.0% 173.9%

Total 2,290 3.0% 3.1% 109.4%

69


(Eur million)

Credit portfolio quality and coverage

Credit PortfolioOverdue > 90

days

Overdue > 90

days / total

loans

Overdue > 90

days / total

loans

Coverage

Dec 10 Dec 10 Sep 10 Dec 10

Individuals 388 1.5% 1.5% 83.3%

Mortgage 146 0.6% 0.6% 105.7%

Consumer 242 8.3% 7.7% 69.8%

Corporate 1,321 3.9% 4.2% 122.1%

Services 358 2.6% 3.0% 150.7%

Commerce 248 7.0% 7.2% 82.6%

Construction 372 8.4% 8.9% 73.5%

Others 343 3.0% 3.1% 173.8%

Total 1,709 2.9% 3.1% 113.3%

70


Romania: improvement of core income and control of operating costs

Branches

Banking income

Employees

Operating costs

Customer funds

Net income

(Eur million)

(Eur million)


� Recovery of core income continues� Controlled costs � Increase of loans to customers and

customer funds

268344

Dec 09 Dec 10

700 731

Dec 09 Dec 10

254 282

Dec 09 Dec 10

+28.3% +11.0%

-23.6

-38.02009 2010

22.8 26.6

2009 2010

+16.7%40.741.4

2009 2010

-1.6%

74 74

Dec 09 Dec 10

71


Financial Statements

72


Consolidated Balance Sheet and Income Statement

2010 2009

Assets

Cash and deposits at central banks 1,484,262 2,244,724

Loans and advances to credit institutions

Repayable on demand 1,259,025 839,552

Other loans and advances 2,343,972 2,025,834

Loans and advances to customers 73,905,406 75,191,116

Financial assets held for trading 5,136,299 3,356,929

Financial assets available for sale 2,573,064 2,698,636

Assets with repurchase agreement 13,858 50,866

Hedging derivatives 476,674 465,848

Financial assets held to maturity 6,744,673 2,027,354

Investments in associated companies 397,373 438,918

Non current assets held for sale 996,772 1,343,163

Investment property 404,734 429,856

Property and equipment 617,240 645,818

Goodwill and intangible assets 400,802 534,995

Current tax assets 33,946 24,774

Deferred tax assets 688,630 584,250

Other assets 2,533,009 2,647,777

100,009,739 95,550,410

Liabilities

Amounts owed to credit institutions 20,076,556 10,305,672

Amounts owed to customers 45,609,115 46,307,233

Debt securities 18,137,390 19,953,227

Financial liabilities held for trading 1,176,451 1,072,324

Other financial liabilities at fair value

through profit and loss 4,038,239 6,345,583

Hedging derivatives 346,473 75,483

Non current liabilities held for sale - 435,832

Provisions for liabilities and charges 235,333 233,120

Subordinated debt 2,039,174 2,231,714

Current income tax liabilities 11,960 10,795

Deferred income tax liabilities 344 416

Other liabilities 1,091,228 1,358,210

Total Liabilities 92,762,263 88,329,609

Equity

Share capital 4,694,600 4,694,600

Treasury stock (81,938) (85,548)

Share premium 192,122 192,122

Preference shares 1,000,000 1,000,000

Other capital instruments 1,000,000 1,000,000

Fair value reserves (166,361) 93,760

Reserves and retained earnings (190,060) (243,655)

Profit for the year attributable to Shareholders 301,612 225,217

Total Equity attributable to Shareholders of the Bank 6,749,975 6,876,496

Minority interests 497,501 344,305

Total Equity 7,247,476 7,220,801

100,009,739 95,550,410

(Thousands of Euros)

2010 2009

Interest income 3,477,058 3,639,479

Interest expense (1,960,223) (2,305,324)

Net interest income 1,516,835 1,334,155

Dividends from equity instruments 35,906 3,336

Net fees and commission income 811,581 731,731

Net gains / losses arising from trading and

hedging activities 367,280 249,827

Net gains / losses arising from available for

sale financial assets 61,907 (24,457)

Other operating income 17,476 41,137

2,810,985 2,335,729

Other net income from non banking activity 16,550 16,233

Total operating income 2,827,535 2,351,962

Staff costs 891,259 865,337

Other administrative costs 601,845 570,177

Depreciation 110,231 104,736

Operating costs 1,603,335 1,540,250

1,224,200 811,712

Loans impairment (713,256) (560,029)

Other assets impairment (71,115) (70,485)

Goodwill impairment (147,130) -

Other provisions 635 (26,871)

Operating profit 293,334 154,327

Share of profit of associates under the equity method 67,481 66,262

Gains / (losses) from the sale of subsidiaries and other assets (2,978) 74,930

Profit before income tax 357,837 295,519

Income tax

Current (54,158) (65,634)

Deferred 57,240 19,417

Profit after income tax 360,919 249,302

Attributable to:

Shareholders of the Bank 301,612 225,217

Minority interests 59,307 24,085

Profit for the year 360,919 249,302

Earnings per share (in euros)

Basic 0.04 0.03 Diluted 0.04 0.03

(Thousands of Euros)

73


Consolidated Income Statement (Quarterly Evolution)

For the twelve month periods ended 31 December, 2010 and 2009

(Eur million)

∆ %

10 / 09

Net interest income 336.0 340.6 364.4 386.8 425.1 1,334.2 1,516.8 13.7%

Dividends from equity instruments -1.0 0.9 18.2 16.4 0.4 3.3 35.9 >100%

Net fees and commission income 198.0 202.2 202.8 196.8 209.8 731.7 811.6 10.9%

Other operating income 5.7 5.0 10.1 4.5 11.4 132.3 31.0 -76.5%

Net trading income 37.2 135.4 179.2 30.9 83.7 225.4 429.2 90.4%

Equity accounted earnings 18.4 16.7 12.1 24.3 14.3 66.3 67.5 1.8%

Banking income 594.3 700.7 786.8 659.7 744.7 2,493.2 2,892.0 16.0%

Staff costs 198.2 208.8 215.4 229.1 237.9 865.3 891.3 3.0%

Other administrative costs 143.5 147.7 153.4 145.3 155.4 570.2 601.8 5.6%

Depreciation 26.1 25.8 25.8 32.1 26.6 104.7 110.2 5.2%

Operating costs 367.9 382.2 394.6 406.5 419.9 1,540.3 1,603.3 4.1%

Operating profit bef. imp. 226.4 318.5 392.2 253.2 324.8 952.9 1,288.7 35.2%

Loans impairment (net of recoveries) 150.6 164.8 219.4 165.7 163.4 560.0 713.3 27.4%

Goodwill impairment 0.0 0.0 73.6 0.0 73.6 0.0 147.1 --

Other impairm. and provisions 21.9 21.8 18.8 15.8 14.0 97.4 70.5 -27.6%

Profit before income tax 53.9 131.9 80.4 71.7 73.8 295.5 357.8 21.1%

Income tax -5.1 22.0 -0.3 2.4 -27.2 46.2 -3.1 100%

Net income 47.1 96.4 66.8 54.2 84.2 225.2 301.6 33.9%

Year-to-dateQuarterly

4Q 09 Dec09 Dec104Q 103Q 102Q 101Q 10

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Consolidated Income Statement (Portugal and International operations)

For the twelve month periods ended 31 December, 2010 and 2009

(Eur million)

Dec09 Dec10 ∆ % Dec09 Dec10 ∆ % Dec09 Dec10 ∆ % Dec09 Dec10 ∆ % Dec09 Dec10 ∆ % Dec09 Dec10 ∆ % Dec09 Dec10 ∆ %

Interest income 3,639 3,477 -4.5% 2,511 2,322 -7.5% 1,128 1,155 2.4% 544 589 8.2% 110 129 17.0% 289 276 -4.3% 185 161 -13.1%

Interest expense 2,305 1,960 -15.0% 1,593 1,338 -16.0% 712 622 -12.6% 407 357 -12.2% 26 33 27.3% 164 149 -9.2% 115 83 -27.8%

Net interest income 1,334 1,517 13.7% 918 984 7.2% 416 533 27.9% 137 231 68.6% 84 96 13.8% 125 127 2.2% 71 78 10.9%

Dividends from equity instruments 3 36 >100% 3 35 >100% 1 1 -3.5% 0 0 0.7% 0 0 -15.9% 0 0 -37.9% 0 0 100% 35 32 -8.2%

Goodwill impairment 0 147 -- 0 147 -- 0 0 -- -- -- -- 0 0 --

Other impairm. and provisions 97 70 -27.6% 93 56 -39.6% 5 14 >100% 1 4 >100% 1 5 >100% 1 2 >100% 2 4 57.9%

Profit before income tax 296 358 21.1% 235 221 -5.8% 61 137 >100% 0 102 >100% 64 65 1.6% 19 -21 100% 0 0 -- 1 1 -5.0% 0 0 1.1% 24 57 >100%

Net income 225 302 33.9% 214 250 16.9% 11 52 >100% 0 81 >100% 52 53 1.4% 9 -16

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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 501 525 882 and the share capital of EUR 4.694.600.000

Investor Relations Division:

Sofia Raposo, Head of Investor Relations

Francisco Pulido Valente

João Godinho Duarte

Tl: +351 21 1131 085

Email: [email protected]

Documents

Earnings Presentation FY 2010 - ind.millenniumbcp.pt · Earnings Presentation FY 2010 (Eurmillion ) Net interest income Portugal International operations Consolidated Strong increase