1Q12 Results Presentation1Q12 Results Presentation 15 May 2012 3 BES has been addressing the tough macro and market challenges of the past 2 years with a strict financial discipline,

1Q12 Results Presentation(Unaudited Figures)

15 May 2012

11Q12 Results Presentation 15 May 2012

Foreword: Macroeconomic highlights

Economic activity in the US and in China decelerated in the 1Q12, while contracting in the Euro Area. This resulted from restrictive fiscal policies and from the ongoing deleveraging in the private sector, notwithstanding the expansionary stance of monetary policy in Europe and the US. Also, the risks from the Euro Area debt crisis continued to constrain confidence levels, with negative impacts on consumer and investment spending.

Nevertheless, and in spite of the persistence of difficulties that would intensify in the 2Q, the systemic risks associated with the Euro Area debt crisis retreated in the 1Q, following the 2nd Greek bail-out and, above all, the Eur1 trillion long-term liquidity injections by the ECB. These allowed for a reduction in both credit and sovereign spreads in the Euro Area periphery. The 3-month Euribor fell 58 bps, to 0.78%.

In Portugal, GDP fell 0.1% q-o-q and 2.2% y-o-y, well above expectations, as a result of a favourable performance of exports and a lower contraction in domestic demand. The effects of a strongly restrictive fiscal policy and the deleveraging process among households and firms should continue to put a downward pressure on activity. However, annual GDP should fall less than expected in 2012, close to 3%.

The unemployment rate increased further in 1Q, to close to 15% of the labour force. Most indicators point, however, to a stabilisation trend in activity over the next quarters, with less intensive YoY declines. Exports remained an important source of growth, with a 11.6% YoY nominal increase in merchandise exports. While sales to the EU increased 5.5%, extra-EU exports rose 32.3%, with emerging markets in Africa, Latin America and Asia continuing to increase their weight in total exports.

In a very challenging environment, the targets of the Economic and Financial Adjustment Programme were broadly met, allowing for a third favourable assessment from the Troika, mirroring the progress of the public accounts. An improvement in market perceptions regarding the Portuguese economy contributed to a decline in Government bond and T-Bill yields. The privatisations of EDP and REN and the successful rights issue of BES testify to the attractiveness of Portugal to foreign investors.


BES has been addressing the tough macro and market challenges of the past 2 years with a strict financial discipline, leading to a stronger and more solid balance sheet

In light of continued absence of wholesale debt markets for two years and a tough macroeconomic environment, coupled with the adjustments imposed by the Programme of Economic and Financial Assistance of Portugal, Banco Espírito Santo has been successfully adopting a comprehensive set of measures to strengthen the balance sheet.

At the funding and liquidity front, the Bank continues its deleverage plan initiated in the 2H10. In fact, since March 2010 BES has faced wholesale debt redemptions (both MLT and ST) amounting to c. Eur 20bn which were just partially compensated by the use of ECB facilities, amounting to Eur 12.1bn only, in March 2012.

In the first quarter of 2012, the Bank repaid over 80% of the MLT term debt maturing is 2012 (Eur 2.8bn), for which the use of ECB liquidity facilities continued to be needed. Total ECB eligible repoable assets were further increased to Eur 20.5 bn (+ Eur 5.4bn in the quarter), of which Eur 12.1 bn were used at the end of 1Q12 (including Eur 10.2 bn of LTRO).

The LTD ratio maintains its sustained downward trend ahead of planned, on track to achieve the 120% level in 2014 recommended to Portuguese Banks, having reached 135% in the 1Q12 (-63 p.p. since June 2010), mainly backed by a continued strong increase in deposits (+Eur 1.8bn QoQ) anchored on BES strong franchise.

BES Group’s domestic deposits base has been a key driver of the deleverage, having increased 22.7% YoY, outperforming the Portuguese banking system (+ 5.5% YoY) which in any case shows the continued confidence of Portuguese depositors in Portugal and the Portuguese banks.


BES has been addressing the tough macro and market challenges of the past 2 years with a strict financial discipline, leading to a stronger and more solid balance sheet

Solvency levels have been decisively reinforced solely through market solutions. At the end of March, Core Tier I ratio reached 9.4%, and the Bank concluded already in May a rights issue of Eur 1.01 bn, which leaves BES in a comfortable position to cope with minimum Core Tier I capital requirements established by EBA (minimum 9% CT1 in June 12) as well as BoP (minimum 10% CT1 in Dec 12) and amongst the best capitalised banks in a Europe-wide context.

The conclusion of the Special Inspections Programme (SIP) conducted by the ”Troika” under the Programme of Economic and Financial Assistance of Portugal was announced in March 1st, with the final results confirming that BES is in the forefront of risk management in Portugal. The workstream 3 of the SIP focused on forecasting solvency under stress test scenarios, and the parameters and methodologies used by the Bank in its financial projections were considered “clearly appropriate”.

BES continues to reinforce significantly its provisions to cope with an expected and already visible asset quality deterioration driven by macroeconomic recession in Portugal. The provisions reserve in the balance sheet increased to Eur 2.3bn, representing 4.45% of gross loans. Overdue loans ratios maintain an upward trend, but continue to be significantly below the Portuguese average, despite the higher weight of corporate lending.

Profitability was still hampered by the strong provisioning effort of BES Group (+84.9% YoY), as core operating performance continues resilient. Commercial banking income increased 8.7% YoY while operating costs decreased 3.2% YoY, already as a result of a comprehensive set of measures implemented to optimise the domestic cost base, leading to a growth of 27.3% in core operating income. Conversely, and as a result of the mentioned strong provisioning effort, net income decreased 84% vis-à-vis 1Q11, reaching Eur 11.6 mn.

BES is now clearly ahead of the requirements imposed by the Troika, namely in terms of deleverage of the balance sheet and solvency levels, which enables the Bank to pursue the implementation of its strategic priorities, facing the challenges brought by the domestic macroeconomic conditions in a much stronger and solid position.


Proactively addressing challenges: strengthened Balance Sheet and improving efficiency levels

Successful implementation of a deleveraging programme since 2H10. LTD reached 135% in Mar 12, a 63 p.p decrease from 198% in Jun 10.Deposits with strong growth (+38% or Eur 9.9bn since Jun 10; +18% or Eur 5.4bn YoY) and net loans steadily decreasing (-6% or Eur 3bn since Jun 10; -2% or Eur 1.1bn YoY)Significant increase in the pool of assets repoable with the ECB(+Eur 5.4 bn QoQ to Eur 20.5 bn)

Main highlights

Solid Balance

Sheet and improved efficiency

Funding & Liquidity

SolvencyStrong capitalisation level, with 9.4% Core Tier I in Mar 12Successful rights issue concluded in May with a positive impact above 150 bps in Core Tier I

Conservative risk management, with strong provision reserve (4.45% of gross loans or Eur 2.3bn)Overdue loans ratios consistently below the Portuguese average (despite higher weight of corporate loans)

International presence and optimisation of domestic cost base are key to increase profitability in the current environmentCore operating income increased 27% YoY, backed by a 8.7% increase in commercial banking income and a reduction of 3.2% in operating costs

Main challenges

Asset Quality

Profitability & Efficiency


146%135%

141%

198%

171%165% 163%

155%

2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 (…) Target

Main KPI show that BES is successfully addressing current challenges: deleverage plan is on track, core capital was significantly reinforced, provision coverage is conservative and core operating income increased 27% YoY

4.04 4.23 4.45

3.833.473.38

3.07

2.382.29

2007 2008 2009 2010 1Q11 2Q11 3Q11 4Q11 1Q12

9.49.2

7.97.9

Dec-10 Mar-11 Dec-11 Mar-12

Deleverage of the B/S on track

Asset quality: prudent level of provision coverage

Loans to Deposit Ratio

120%

B/S provisions as % of Gross Loans

(1)

Capital significantly reinforced

Core Tier I ratio (%)Considering the impact of recent rights issue and the

deductions for Jun 12 (2), pro-forma

CTI is 10.3% (BoP) and

10.0% (EBA)

Strong growth in core operating income

Eur mn. Core operating income = commercial banking income –operating costs

180201

229

0

50

100

150

200

250

300

1Q11 4Q11 1Q12

+27%

(1) According to BoP definition for Funding and Capital Plan. (2) Considering RWAs of March 12. Deductions for Jun 12 = transfer of Pension Funds and SIP for BoP and transfer of Pension Funds, SIP and sovereign buffer for EBA


Table of contents

I. Funding & Liquidity: Deleverage of the Balance Sheet on track. Strong increase in

repoable assets

II. Solvency: strong capitalisation levels, with a pro-forma core capital after the rights

issue comfortably above minimum regulatory thresholds of EBA and BoP

III. Asset Quality: Conservative and prudent risk management, with strong provision

reserve

IV. 1Q12 results: core performance up 27% YoY, driven by commercial banking income

and efficiency gains. Net income impacted by provisioning levels

V. Wrap up

Appendix 1: Economic highlights: setting conditions for sustainable growth

Appendix 2: Detailed financial data

Appendix 3: Macro forecasts Portugal, Spain, Angola and Brazil


198%

165% 163%

155%

146%

137%130% 131% 130%

125% 122%

135%

171%

141%

117%

119%

1H10 9M10 FY10 1Q11 1H11 9M11 FY11 1Q12 Target

Loans to DepositsRatio

Loans / On-BSCustomer Funds

*

Transformation Ratio

The deleverage plan implemented since the 2H10 is on track and ahead of planned, with the LTD ratio maintaining a downward trend, reaching 135% (from 198% in 1H2010)

120%

-63 p.p.

Further reduction of the LTD to reach the 120% target to be achieved by continuing to increase core deposits while reducing the loan portfolio

-15 p.p.

* Calculated according to BoP definition for Funding and Capital Plan.


Net Loan Portfolio Evolution

(EUR bn; excludes securitised credit)

48.749.9

51.7 51.0 50.849.9 49.7 49.0

1H10 9M10 FY10 1Q11 1H11 9M11 FY11 1Q12

Gross loans decreased 1.3% YoY (Eur 0.7bn) to Eur 51.0bn. Despite the deleverage, BES continues to support exporting SME’s and domestic corporates

Gross loans: YoY growth

(EUR bn)

(Base 100 = Jun 10)

Evolution of LTD and credit components

Exporting SME’s: 12%

Domestic corporate segment: +1%

Jun10 Dec10198%

Dec11Jun11

International credit*: -30%

* International credit excludes Angola and Brazil

165% 155% 141%

LtD

51.7 51.2 51.0

0

10

20

30

40

50

60

70

80

1Q11 4Q11 1Q12

-0.7bn-1.3% -3.0bn

-5.7%

-1.2bn-2.3%

-0.3bn-0.7%

Mar12135%


Core deposits up 17.7% YoY (Eur 5.4bn) to Eur 36.0bn, driven by a 22.7% YoY rise in domestic deposits, which increased well above Portuguese system average of 5.5%

Total Deposits Evolution

(EUR bn)

Domestic deposits

(EUR bn)

26.1

29.9 30.8 30.5 32.033.9 34.2

36.0

1H10 9M10 FY10 1Q11 1H11 9M11 FY11 1Q12

International deposits

(EUR bn)

+9.9bn+37.9%

+5.4bn+17.7%

+1.8bn+5.1%

23.027.0 28.2

0

5

10

15

20

25

30

35

40

1Q11 4Q11 1Q12

+5.2bn+22.7%

75% 79% 78%Weight in total deposits

7.6 7.3 7.8

0

2

4

6

8

10

12

1Q11 4Q11 1Q12

+0.2bn+2.6%

25% 21% 22%Weight in total deposits


Domestic Retail and Private Banking achieved a deposit growth of Eur 5.4bn in the past year. BES’ growth in household deposits has consistently outperformed the market

5 4141985 2162 138

652

2 426

Deposits: March 2012 – YoY Growth Stock of Household Deposits

(Eur mn) (December 2010: Index 100)

Ret

ail

Ban

king

Priv

ate

Ban

king

Oth

erD

omes

tic

Tota

lD

omes

tic

Tota

lIn

tern

atio

nal

Tota

lG

roup

YoYchange 39.0% 19.3% 22.7% 2.6% 17.7%23.8%

57% of the Group’s growth

101105

110

100

110107

137

108

118

128

135

Dec Mar Jun Sep Dec Mar

2010 2011 2012

In a very challenging environment, BES franchise has been key to consistently grow deposits above the market rate

BESHouseholds Deposits

MarketHouseholds Deposits


Weight of deposits in overall funding mix increased from 36% to 59% (+23 p.p.) between 2009 and 1Q12

28% 28% 24% 20%

23% 12% 10% 9%

36%46% 54% 59%

13% 13% 11% 12%

-8% -11%

2%

-15%

2009 2010 2011 1Q12

MLT Wholesale Funds ST (CD's and CP's) and MLT placed w/clientsDeposits Capital instrumentsTreasury Gap (net interbank deposits)

Evolution of funding mix

(%)

Share of customer funds in funding mix increased significantly

Note: ECB included in Treasury Gap.

51%29%


2 765

497156

23

1Q12 2Q12 3Q12 4Q12

Over 80% of 2012 MLT maturities already repaid during 1Q12. Remaining quarters represent undemanding cash requirements

2.8

2.82.71.9

0.7

4.3

2011 2012 2013 2014 2015

Medium and Long Term Debt maturing in 2012 Medium and Long Term Debt maturity profile

(Eur bn)(EUR mn; Total Eur 3.4bn)

Of which: Eur 1. 5bn

Senior Guar. and Eur

1.2bn EMTN

3.4

Funding sources

Commercial gap (*) decreased Eur 12.9bn since 1H10 and Eur 6.6bn in the last 12 monthsIssuance of new government guaranteed bonds totaling Eur 3.5bn since Dec. 11 (Eur 1bn issued in Dec. 11, Eur1bn in Jan.12 and Eur 1.5bn in Feb.12), leading to an increase in ECB’s eligible collateral poolLeveraging on BES international presence to access local funding pools in emerging markets, with a focus on Asia

already repaid

From the Eur 3.4bn to be redeemed in 2012, more than 80%, or Eur 2.8bn, has already been repaid

(*) Commercial gap = Net loans - Deposits

already repaid


ECB

Use

Dec

.11

1Q12

MLT

Rede

mpt

ions

Sho

rt-te

rmfu

ndin

g

Fina

ncia

las

sets

Oth

er

Depo

sits

Loan

port

folio

redu

ctio

nEC

B U

se1Q

12

Repoable assets have increased significantly, providing a substantial liquidity buffer. Use of LTRO facilities amount to Eur 10.2bn

BES use of ECB liquidity facilities (net) (EUR bn)

14.3

18.9

24.2

9.7

15.1

20.5

1Q11 FY 2011 1Q12

ECB Eligible Total

Total Repoable Assets1

(EUR bn)

8.7

2.80.9

1.4

-1.812.1

-0.2

Outflows: 5.4

Inflows: 2.0

ECB: +10.8 bnTotal: +9.9 bn + Eur 3.4 bn

1. Pre-haircuts..Includes repo’ed assets.

0.3

< 1year: Eur 1.9bn

> 1year: Eur 10.2bn


In the last 2 years, BES redeemed Eur 19.5 bn of wholesale debt while ECB facilities were used in the amount of Eur 12.1bn, the remaining Eur 7.4bn liquidity gap being covered internally through deleverage (increase of deposits, sale of international loans an cash flow generation)

Evolution of ECB use and BES redemptions (*)

(Eur bn)

(*) Includes MLT and ST redemptions

12.1

8.7

3.9

-0.3

19.5

15.8

5.3

0.0

Use of ECB Redemptions

12.4

7.2

12.3

Increase in useof ECB

RedemptionsMar-10 Dec 10 Mar 12

12.4

Increase in ECB use and BES redemptions (*) since March 2010

MLT

Short Term

19.5+19.5bn

Eur 7.4bn

Dec 11

+12.4bn

AA1

A-A2

BB-Ba3

BBBa2

S&PMoody’s

(-7 notches)(-8 notches)


Table of contents


repoable assets




reserve



V. Wrap up





1Q12 solvency ratios were significantly reinforced YoY (+150bps), with core Tier I reaching 9.4% (pre-rights issue)

7.9

9.2 9.4

8.8

9.4 9.6

Mar-11 Dec-11 Mar-12

Core Tier I

Notes: BIS II IRB corresponds to calculations based on IRB Foundation for credit risk and standardised approach for operational risk. Preliminary data as of Mar 12.

Solvency Ratios (%) Risk weighted assets and Capital

81,26480,23780,746Net Assets

79.5%81.5%84.9%Risk weight

782

6,184

143

6,066

6,966

3,938

2,198

58,434

64,570

Mar 12

799

6,171

194

6,020

6,970

3,938

1,742

59,705

65,385

Dec 11

84ow deductions AFS:

5,395… Core Tier I

6,033… Tier I

4,389… Trading book

3,973… Oper. Risk

7,838Total Capital

1,805

60,214

68,576

Mar 11

... Tier II and Other

… Banking book

RWA (BoP)

Eur bn

(BoP)

RWA’s decreased 5.8% YoY and CTI was reinforced in almost Eur 700mn YoY.

CTI ratio improved from 7.9% in 1Q11 to 9.4% in 1Q12.

+150 bp


CTI Mar12

RightsIssue

BES Vida PensionFunds &

SIP

SovereignBuffer

CTI Mar12 Pro-forma

Capital levels have been boosted with the Eur 1bn rights issue concluded in May, with pro-forma Core tier I post-rights issue comfortably above both BoP and EBA’sthresholds

Stated Core Tier I (BoP and EBA) 1Q2012 Pro-forma CTI post rights issue and adjustments - BoP

(%) (%; RWAs of Mar 12)

9.49.2

BoP EBA

Pro-forma CTI post rights issue and adjustments - EBA

CTI Mar 12 RightsIssue

BES Vida PensionFunds &

SIP

CTI Mar 12Pro-forma

% RWAs(31-Mar-2012)

Eur 64 570mn

9.4%

1.6%

-0.2% -0.4%

10.3%

9.2%

1.6%

-0.2% -0.4%

10.0%-0.2%

EBA

BoP

EBA Jun/2012 minimum

requirement: 9%

BoP Dec/2012 minimum

requirement: 10%

(%; RWAs of Mar 12)


BES European sovereign exposure increased to Eur 4.8bn (5.9% of net assets) in March 12, concentrated in Portuguese public debt. No exposure to Greece or Ireland

4 7873 1691 618Total

000Greece

1 404

78

0

0

3 091

Bonds

780Spain

2 9491 545Total Dec.11

00Italy

00Ireland

4 7091 618Portugal

TotalTreasury Bills

European Sovereign Exposure

> 1Y52.6%

Up to 1M

4.9%

1M to 3M

20.9%

3M to 1Y

21.6%

Maturity profile of the European Sovereign Exposure

(Eur mn) (%)

Breakdown of European Sovereign Exposure by portfolio

(Eur mn)

AFS84.5%

HTM0%

Trading11.1%

Total potential loss on European sovereign debt amounts to Eur 20mn

Fair value4.4%


Table of contents


repoable assets




reserve



V. Wrap up


Appendix 2:Detailed financial data



Credit portfolio is mainly composed by Corporate loans (72.4% of total) and remains well diversified

Credit Portfolio as of March 2012 (Eur 51.0 bn Gross Loans)

Excludes securitised credit

Corporate72.4%

(Eur 36.9 bn)

Consumer & Other5.1% (Eur 2.6bn)

Mortgage22.5%

(Eur 11.5 bn)

1 Represents a composite of other sectors of the economy none representing more than 3% per se.

Services

Con.& Pub Works

Real Estate

Retail

Other Man.

T&C

Other Services1

Fin. Inst.

14.7%

9.2%

13.3%

6.3%

6.9%

5.7%

4.0%

12.2%

Services

Const. & Public Works

Real Estate

Whol. & Retail

Other Manuf.

T&C

Fin. Inst.

Other Sectors1

% of Total Credit Portfolio


Credit Portfolio as of March 2012 (Eur 51.0bn Gross Loans)

Excludes securitised credit

Domestic78.5%

(Eur 40.0 bn)

International21.5%

(Eur 11.0 bn)

8.0%

6.6%

4.2%

1.2%

1.2%

0.4%

Angola

Spain

US

(Eur 4.1bn)

Brazil

Other

(Eur 3.4bn)

(Eur 2.1bn)

(Eur 0.6bn)

(Eur 0.6bn)

(Eur 0.2bn)

International loans account for 21.5% (Eur 11.0bn) of credit portfolio. Main exposures are Angola and Spain. UK portfolio has been reducing with the deleverage plan

UK


Despite a higher than average weight of corporate lending, BES’ overdue loans ratios continues to be consistently below the Portuguese average

1. 9%2 . 1%

1. 9%

1. 5%1. 3%

1. 2 %1. 3 %

1. 8%2 . 1%

2 . 4%

4. 8%

2 . 1% 2 . 2 %2 . 0%

1. 7%

2 . 2 %

3 . 4%

5. 3 %

3 . 5%3 . 0%

2 . 9%2 . 6%

3 . 2%

2 . 4%2 . 3%

1. 8%

2 . 1%

4. 5%

4. 4%

3 . 8%3 . 9%

3 . 6%

2 . 6%2 . 2% 2 . 3%

1. 9%1. 6%

3 . 2 %

'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

BES Overdue Loans Ratio* Evolution vsPortuguese System

Source: BES and BoP. March 2012* Overdue loans + 30 days

4.18%

0.83%

5.40%

7.7%

2.0%

10.8%Consumer

& Other

Mortgage

Corporate

System

BES1Q

11

2Q11

Overdue loans continue to increase, reflecting the

deterioration of macroeconomic conditions

3Q11

4Q11

Total Overdue Loans/Gross Loans SystemTotal Overdue Loans/Gross Loans BES

1Q12

System data as of March 2012; Source: BoP Statistical Press Release 7th May 2012


Total provisions reserve is now Eur 2.3 bn, or 4.45% of the loan portfolio. Total credit at risk totals 7.15% of the loan portfolio, with a 62% coverage by provisions on BS

BES On-BS Provisions Reserve

2 1672 271

1 7901 777

1 552

1 148990

2007 2008 2009 2010 1Q11 4Q11 1Q12

Overdue and Credit at Risk ratios

(Eur mn) (%)

Provisions as % of Gross Loans

2.29% 2.38% 3.07% 3.38% 3.47%

Overdue loans

+ 90 days

7.15%

3.48%2.96%

Overdue loans

+ 30 days

Credit at Risk*

150%

Coverage (excluding collaterals and guarantees)

128% 62%

4.23%

(*) According to Instruction 23/2011 of Bank of Portugal. Credit at risk includes: a) total value of credit with capital or interest past due by 90 days or more; b) other restructured credit, where the principal or interest payments were past due by more than 90 days and have been capitalized or refinanced without full coverage by collaterals or the interest fallen due have not been fully paid by the debtor and c) credits of an insolvent or bankrupt debtors.

4.45%

+26.9%On BS provisions reserve increased to

4.45%, one of the highest levels in Iberia


0.8

1.14

0.850.76

0.62 0.71 0.63 0.71 0.63

1.14 1.15 1.17

0.33

0.52

1.74

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

81

148 147 149

97

138104 96

8095 84 94

22540

66

0

50

100

150

200

250

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

Quarterly Credit ProvisionsCost of Risk

Eur 40 mnadditional

charge

(Eur mn)(%)

Cost of risk was 1.17% in 1Q12, in line with 2011. The current economic conditions in Portugal continue to impose a strong provisioning effort

Eur 66 mnadditional

charge

1.47%, including additional LLC

2009Eur 540mn

2010Eur 352mn

2011Eur 601mn

2009107 bps

201067 bps

2011117 bps

(1)

(1) Includes Eur 42.7 mn of provisions resulting from the SIP. The difference vs the initial amount of Eur 125mn is explained by the fact that the remaining provision charges were made in accordance with BES Group’s usual criteria.

1.28%, including additional LLC


Table of contents


repoable assets




reserve



V. Wrap up





n.m.

69.3%

1.8%

n.m.

n.m.

1.6%

14.0%

n.m.

-9.0%

245%

n.m.

0.2%

7.3%

-4.2%

QoQ

72.2

39.1

7.6

29.9

141.2

103.1

179.9

244.3

280.9

525.3

64.3

460.9

189.6

271.3

1Q11

27.3%229.0200.9Net Op. Income ex-Mkts & Other

-84.0%

-25.1%

2.0%

-15.5%

-53.1%

84.9%

5.2%

-3.2%

0.7%

-56.8%

8.7%

8.9%

8.6%

YoY

-280.6

17.4

7.6

-70.1

-333.4

187.6

-145.7

298.9

153.2

-346.6

499.7

192.4

307.3

4Q11

7.8o.w. Special tax on banks

11.6

29.3

25.3

66.2

190.7

256.9

271.9

528.8

27.8

501.0

206.4

294.5

1Q12

Net Income=

-

-

=

-

=

-

=

+

=

+

+

Minority Interests

Taxes

Income Bef. Taxes and Minorities

Net Provisions

Net Operating Income

Operating Costs

Banking Income

Capital Markets & Other Results

Commercial Banking Income

Fees and Commissions

Net Interest Income

(EUR million)

In a very challenging environment, BES’ 1Q12 results were affected by conservative provisioning levels. Core net operating income increased 27.3% YoY, driven by an 8.7% YoY growth in core revenues and a 3.2% reduction in operating costs

In December 2011 BES Group changed the accounting policy for booking actuarial deviations determined in post employment benefit liabilities, which are now recognised under Other Comprehensive Income (OCI). As provided for in IAS 8, changes in accounting policies with material impact require the restatement of prior periods for comparison purposes. Accordingly, the Balance Sheet and Income Statement include the restated data for 1Q11


Commercial banking income increased 8.7% YoY, backed by both NII (+8.6% YoY) and Fees & Commissions (+8.9% YoY). Excluding the guarantee paid to issue Government guaranteed debt, Fees and Commissions grew 15% YoY

Consolidated NII Fees & Commissions

Commercial Banking Income

(Eur mn) (Eur mn)

(EUR mn)

1.55 1.87 1.74 1.711.56

3.83 3.95 4.37

-1.98 -1.97 -1.96 -2.22 -2.66

3.523.54

1Q11 2Q11 3Q11 4Q11 1Q12

NIM Assets Spread Liabilities Spread

189.6 192.4 206.5

0

50

100

150

200

250

1Q11 4Q11 1Q12

+8.9%1Q12 includes Eur

12.6mn paid to Portuguese government

associated with the issuance of debt

guaranteed by the Portuguese

Republic. Without this amount, Fees & Commissions

would have increased by 15%

271.3307.3 294.5

0

50

100

150

200

250

300

350

1Q11 4Q11 1Q12

+8.6%

NIM: +15 bps

460.9 499.7 501.0

0

100

200

300

400

500

600

1Q11 4Q11 1Q12

+8.7%


298.9

29.1

120.3

149.5

4Q11

-9.0%

-8.5%

-15.0%

-4.3%

QoQ

271.9

26.6

102.2

143.1

1Q12

-4.9%107.5Admin.

-3.2%

2.0%

-2.9%

YoY

281.0

26.1

147.4

1Q11

Total

Staff

Dep.

Domestic operating costs

International operating costs

(Eur mn)

(EUR mn)

Operating costs under strict control (down 3.2% YoY), with cost cutting measures already producing results in domestic operations

Operating costs *

(Eur mn)

Domestic operating costs

decreased 5.8% YoY

* Note: costs of 2011 restated due to changes in accounting policies

281.0298.9

271.9

0

50

100

150

200

250

300

350

1Q11 4Q11 1Q12

-3.2%

200.0 205.1 188.4

0

50

100

150

200

250

1Q11 4Q11 1Q12

-5.8%

81.093.8 83.5

0

20

40

60

80

100

120

140

1Q11 4Q11 1Q12

+3.1%

International operating costs

increased 3.1% YoY


Strong growth of core operating income shows the resilient earnings power of the Bank. Provisioning effort in line with last quarters but up 84.9% YoY with negative impact in net profit

Core Operating Performance

(Core Net Operating Income: Commercial Bkg Income – Op. Costs; Eur mn)

179.9200.9

229.0

0

50

100

150

200

250

300

350

1Q11 4Q11 1Q12

+27.3%

81

147 14922

41 42

1Q11 4Q11 1Q12

Securities &Other

Credit

Total Provisions

(Eur mn)

+14.0% 191188

103

+84.9%

+1.5%

0.63% 1.15% 1.17%Cost of Risk


Net income from International business reached Eur 22.9mn, with special focus for the Strategic Triangle (Africa, Brazil and Spain). Deleverage plan with a significant impact in UK and US

22.9

-0.9

0.6

-2.1

25.3

4.7

7.0

13.6

1Q12

-53.9%27.2Africa

24.3%5.7Brazil

-19.8%5.8Spain

-86.2%4.5US

-59.1%56.0Total

n.m.10.2UK

2.6

38.7

1Q11

n.m.

-37.3%

YoY

Other

Strategic Triangle (1)

Africa53%

Brazil28%

Spain19%

Strategic Triangle: Net Income Breakdown 1Q12

(Eur mn)

(1) Includes Africa, Brazil and Spain

International Business

(Eur mn)

Africa includes Angola, C. Verde, Libya and Mozambique

During 1Q12, BES opened two new international branches: Venezuela and

Luxembourg

Total: Eur 25.3mn


Investment Banking: Pursuing International Diversification

Banking Income: Eur 59.7 mn (-7.2%)

NII31% Fees &

Commissions58%

Capital Mkts11%

0%

1000%

2000%

3000%

4000%

5000%

6000%

7000%

8000%

1Q11 1Q12

64.3 59.7Domestic

International

Domestic

International

Net Profit: Eur 6.0mn (-34%)

79%

21%

71%

29%

0

5

10

1Q11 1Q12

15%

85%100%

9.1

6.0

Domestic Market: Privatisations on the spotlight

Advisory of State Grid Corporation of China in the acquisition of a 25% stake in REN – Redes Energéticas Nacionais, SGPS, S.A. from Parpública in the context of REN’s 2nd reprivatisation phase (announced deal amounting to Eur 387mn).

The Bank remained the leader of the Portuguese brokerage market, ending March with a 11.6% accumulated market share.

International activity: Ready to start in India and partnership in South Africa

In India, the Bank, in association with the Burman family, has been granted a brokerage license and will start operations in the 2nd quarter.

In South Africa, the Bank signed an agreement with the independent local broker Avior Research to jointly develop international distribution and trading of South African and Pan-African equities in Europe.

In Brazil, the Bank acted as Joint Bookrunner on the US$1.5bn bonds issue by Brasil Telecom and on the R$ 771.1mn debentures issue by Sabesp and as Mandated Lead Arranger on the R$ 128mn bonds issued by NSOSPE, S.A. (Semapa Group).

In the UK, the Bank advised SVG Capital plc on a up to £170mn return of capital/ tender offer and acted as Sole Bookrunner on the £25mn GlobeOpFinancial Services block trade placing.

In Poland, the Bank advised the sale of 100% of Lotos Parafiny to the privateequity fund Krokus, through a Leverage Management Buy-Out operation, andranked 13th in the Polish brokerage market, with a 2.7% market share in the1Q12.

In Spain, the Bank ranked #3 in the Madrid Stock Exchange with a 8.2% market share in the 1Q12


Table of contents


repoable assets




reserve



V. Wrap up





BES is now clearly ahead of the requirements imposed by the Troika, which enables the Bank to pursue the implementation of its strategic priorities, facing the challenges brought by the domestic economic conditions in a much stronger and solid position

Consistent and continued deleverage of the balance sheet, leading to a further decrease of the LTD ratio

to 135% in the 1Q12 (from 198% in Jun 10 and 141% in Dec 11), mainly driven by a significant increase in

deposits (+Eur 1.8 bn in the quarter, + Eur 9.9bn or 38% since Jun 10)

ECB facilities amount to Eur 12.1bn, while maturities of the past 2Y totalled close to Eur 20 bn

Continued increase in the pool of collaterals available for repo facilities, with a significant buffer

Post rights issue (concluded in May 11th), BES is one of the best capitalised banks in a Europe-wide

context, and in a comfortable position to meet the capital requirements established by both the EBA

(minimum 9% CT1 in Jun 12) and BoP (minimum 10% CT1 in Dec 12), solely through market solutions

Conclusions of the Special Inspections Programme place BES in the forefront of risk management in

Portugal

Conservative stance in provisioning efforts in light of the domestic macroeconomic difficulties. Provisions

reinforced to Eur 2.3 bn (4.45% of gross loans), while NPL ratios are consistently below the Portuguese

average

Good performance of the commercial banking income (+8.7%) coupled with a 3.2% reduction in operating

costs (resulting from the implementation of a comprehensive domestic cost base optimisation) leads to

improved efficiency levels, despite overall profitability being hampered by significant provisioning efforts.

Unique positioning in South Atlantic axis, with presence in high growth countries and a strong rationale

linked with Portuguese exporting companies provides a solid ground for future profitability

Deleverage of the Balance Sheet

Prudent Risk Mgmt

Strengthen capital ratios

Sustain future profitability


Table of contents


repoable assets




reserve



V. Wrap up




351Q12 Results Presentation 15 May 2012Sources: ECB, Bloomberg, Reuters EcoWin Pro.

EUR/USD

External environment: Rising political risks weigh on sentimentEuro Area 5-year CDS spreads, financial sector (bps)Main world stock indices

Spanish and Italian 10-year Governmentbond yields (%)10-year Government bond spreads (%)

0

50

100

150

200

250

2007 2008 2009 2010 2011 2012

Basis

Poi

nts

0.80

0.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

2002 2004 2006 2008 2010 2012EU

R/U

SD

1.296

YTD 2012: +0.0%

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

Nov. 2011

Dez. 2011

Jan. 2012

Fev. 2012

Mar. 2012

Abr. 2012

Mai. 2012

%

Spain

Italy

6.04

5.60

0200400600800

10001200140016001800200022002400260028003000320034003600

Out. 2007 Jul. 2008 Abr. 2009 Jan. 2010 Out. 2010 Jul. 2011 Abr. 2012

Pont

os B

ase

Greece

Ireland

Portugal

Spain

452

1001

538

2250

408

Italy

10-year Bund yields (%)

1.01.52.02.53.03.54.04.55.05.56.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

%

1.51


Portugal: Economic activity is contracting, but most indicators are starting to suggest a gradual stabilisation trend over the next quarters

April 2012

External orders indicator (netbalances) vs. German IFO

Economic sentiment indicator vs. GDP (% y-o-y)

Retail sales (%, real annual averagegrowth, 12m MA)

Total electricity consumption(% y-o-y, 3m MA)

Consumer confidence indicator(net balances)

April 2012

Coincident indicator of economicactivity (% y-o-y)

March 2012

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011

%

Total

-6.9

Food products

Non Food products

Total excl. fuel

-6.4

-3.6

-10.1 -7

-6

-5

-4

-3

-2

-1

0

1

Jan. 2011

Mar. 2011

May. 2011

Jul. 2011

Sep. 2011

Nov. 2011

Jan. 2012

Mar. 2012

%

March 2012

Sources: INE, Bank of Portugal, European Commission, ES Research.

80.0

85.0

90.0

95.0

100.0

105.0

110.0

115.0

120.0

-40

-30

-20

-10

0

10

20

30

40

50

60

Oct. 2006

May. 2007

Dec. 2007

Jul. 2008

Feb. 2009

Sep. 2009

Apr. 2010

Nov. 2010

Jun. 2011

Jan. 2012

Aug. 2012

%

-1.1%

New manufacturing orders,external market (LHS)Feb. 2012

IFO (Advced.6m, RHS)Apr. 2012


2.61.7

0.3

-0.3

-6.8

2.9

2010 2011 2012 2013 2014 2015

Primary Budget Balance

Sources: Ministry of Finance, EC, IMF.

Budget Deficit

1. 2011 deficit, after one-off measures; 2. Underlying 2011 deficit, without one-off measures. One-off revenues were used in 2011 to comply with the deficit target of 5.9% of GDP. The estimated deviation from target (2% of GDP) was also partly explained by one-off events (e.g. privatisation of BPN, reclassification of debt from public companies in Madeira) and also by lower than expected non-tax revenues

Improvements in public financial management: Law on commitment controls, implementation of Budgetary Framework Law at all levels of Government, Adjustment programme in Madeira.

Reform of Public Administration and SOEs sector (e.g. mergers and extinction of services and SOEs).

Higher GDP growth rates, as a result of ongoing internal devaluation and structural reforms.

Improving the primary balance

(% GDP)(% GDP)

1.92.33.0

4.5

3.13.43.7 4.0

6.5

4.63.6

10.2 9.8

4.2

7.9

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

(1)

(2)

Budget deficit to reach to 4.5% of GDP in 2012 and 1.9% of GDP in 2015. The primary balance is expected to return to surplus in 2012 and to reach close to 3% of GDP by 2015, on the back of structural reforms in Public Administration and in the economy


General Government budget implementation, January-March 2012 vs. 2011

Sources: DGO, ES Research - NCPAMoU.

(1) Adjusting for intra-Government payments, and for different patterns in spending and revenues, the State’s deficit fell 0.2% YoY. Also, tax revenues in March do not include yet the whole impact of the 2012 Budget tax increases (e.g. Personal Income Tax, VAT) and the cuts in the holiday and Christmas bonuses, affecting public spending, will only be accounted for in June and November.

2012 budget implementation is, so far, consistent with the targets for the annual deficit

Januaryto MarchEUR -6 275 million

Deficit-12.9%

Surplus +21%

EUR 1 092 million

State

AutonomousFunds(excl.

RPEs)

Value

ChangeRate

ChangeRate

Value

Surplus -85.3%

EUR 63 millionSocial Security

ChangeRate

Value

Surplus+10%

EUR 216 millionRegional andLocal Government ChangeRate

Value

EUR -1 637 million

Deficit+83.5% (1)

Surplus +8.4%

EUR 944.2 million

Surplus -52%

EUR 278.2 million

Surplus +18.2%

EUR 38.3 million

2012 TargetExecutionvs. Target

2012

EUR-444.4million

Vs.

EUR-6 193million

n.a.

EUR -1 289 millionReclassifiedPublicEntities

(RPEs) ChangeRate

Value

n.a.

EUR -68.1 million


Base scenarios for Portugal’s public debt (1) Public debt scenarios according to average GDP growth (%) (1) (2)

No restructuring (or PSI) is expected. Public debt is sustainable according to the Troika. Also, given Portugal’s strong commitment to the financial and structural adjustment targets, the Troika have reaffirmed their commitment to continue to support Portugal “until market access is regained”.

Sources: EC, IMF, ECB, ES Research.

60

70

80

90

100

110

120

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2025 2030

77

96

ECB

IMF

103

(1) Includes EUR 12 billion of Bank recapitalisation funds, which are not expected to be fully used. (2) ES Research analysis, assuming 2% GDP deflator, 5% average interest rate and 3.3% of GDP average primary surplus.

(% GDP)

(% GDP)

61.7

83.2

94.0

104.8

99.6

105.2

107.9

110.72020

2020

2020

2020

2030

2030

2030

2030

1%

1.5%

2%

3%

According to the Troika’s analysis, Portugal’s public debt is sustainable, even under conservative assumptions. PSI is not envisaged nor required

401Q12 Results Presentation 15 May 2012Sources: IGCP, Reuters Ecowin.

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

2011 2011 2011 2012 Jan2011

Mar Mai Jul Set Nov Jan2012Mar Mai

Per

cent

2.5

5.0

7.5

10.0

12.5

15.0

17.5

20.0

22.5

25.0

Treasury Bill issues with longer maturities and lower average yields. Medium and long term Government bond yields are also falling in the secondary market

Average yields in Treasury Bill issues (%) Government Bond yields in the secondary market (%)

3 Month

6 Month

Besides the fall in the average yields of 3 and 6 month issues, Portugal has already issued Treasury Bills with 12 and 18 month maturities, with 3.9% and 4.5% average yields, respectively, in the latest issues, in May (12 month) and April (18 month).

YY

Y


0.4

2.7

5.1

8.3

9.68.9

9.58.8

6.5

4.4

6.7

11.4

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Portugal is demonstrating a strong adjustment capacity. The deleveraging process is translating into a rapidly declining external deficit. External competitiveness is also being supported by favorable developments in unit labor costs, following structural adjustments in the economy and the ongoing “internal devaluation”

Sources: INE, IMF/European Commission, Eurostat.

(1) Net external financing needs i.e combined current and capital account balance.

External Deficit (1)

(% GDP)

Hourly Labour Costs Growth

(%, YoY, 4th Quarter 2011)

3.63.42.92.82.72.72.32.32.1

-0.3

-1.7 -1.7

4.4

6.67.2

Irela

nd

Port

ugal

Slov

enia UK

Cze

ch R

ep.

Italy

Bel

gium EU

Euro

Are

a

Spai

n

Fran

ce

Ger

man

y

Latv

ia

Hun

gary

Esto

nia

(E) (E)


-10.3-17.9

-24.8-31.9

-39.5-46.3

-55.4 -58.2-63.1 -67.4

-78.8-88.9

-96.1

-110.6-107.3

-103.1

-120

-100

-80

-60

-40

-20

0

20

40

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Banking Sector Monetary authorityGeneral Government Other SectorsTotal net external liabilities

The ongoing deleveraging is also translating into a lower stock of net external liabilities, which declined from 110.6% to 103.1% of GDP between 2009 and 2011

Source: Bank of Portugal.

Banking Sector Monet. Auth. General Gov. Other Sectors2009 2011

-46 -20

Stock of net external liabilities of the Portuguese economy(% GDP)

2009 2011

+2 -152009 2011

-60 -512009 2011

-7 -17


1974 - 1985 1986 - 1998 1999 - 2011 2012 - 2025

Portugal’s annual average real GDP growth

Productivity growth catching up vs. EUExternal competitiveness through lower wages and currency depreciationStronger exports growth

EU structural fundsFDI, privatisationsStrong infrastructure investment and labour participationStronger domestic demand

Sources: AMECO, ES Research.

Impact of emerging Asia and Eastern EuropeLack of structural reformsDiverging productivity growth and loss of external competitivenessHigher indebtedness

(%)

2.5

4.1

1.0

2.0 – 3.0

Internal devaluationFDI, privatisationsFocus on exports (expansion of the relevant market)Intensive structural reforms, higher productivity growthExploring sectors with competitive advantagesLower debt levels

With the ongoing implementation of the right framework and policies, Portugal will deliver stronger growth

Consolidating democracy

European integration

Losing competitiveness

Structural transformation


Portugal’s exports registered nominal growth of 13% in 2011, surpassing levels of 2008. This exports dynamic (merchandise) continues, with nominal growth of 13.2% in February 2012. Since 2000, External Euro-zone exports have consistently increase their weighting over Intra Euro-zone

Sources: INE, Bank of Portugal, ES Research.

Portuguese Exports Profile (2000 - 2011)

(EUR bn)

Total: 13%

15%Merchandise

9%Services

%Δ 2011/10

Portuguese Exports Breakdown, Euro Area and Rest of the World

(2000-2011, weight, %) %Δ 2012/11(Merchandise,

February)

13.2%

27.2 31.1 38.8 31.7 36.8 42.49.8 12.2

17.916.3 17.6 19.2

2000 2005 2008 2009 2010 2011

Services

Merchandise

63.9 64.8 61.2 61.4 61.0 60.3

36.1 35.2 38.8 38.6 39.0 39.7

2000 2005 2008 2009 2010 2011

Rest of theWorld

EURO Area


0.2

2.1

6.3

8.4

12.6

12.7

28.9

46.6

61.7

69.4

121.3

176.3

Spain

Brazil

UK

France

Germany

Poland

Angola

Algeria

Morocco

USA

Mozambique

China

Portugal has been expanding its relevant market to fast growing emerging markets. The profile of Portuguese exports has been changing, with an increase in the weight of high value added goods and services

Portuguese merchandise exports to selected countries

Sources: INE, ES Research.

(%)

1.7

0.7

5.3

1.1

0.7

5.4

0.9

13.8

12.5

4.9

1.4

23.1

Weight merchandise exports, %

Growth merchandise exports, %

(0.7)

(0.4)

(3.6)

(0.8)

(0.5)

(4.7)

(0.9)

(13.9)

(13.0)

(5.2)

(1.5)

(26.1)

Growth February 2012/11Weight February 2012( ) February 2011

Top 5 merchandise exports(2012 March, weight, %)

Top 5 services exports

(2012 February weight, %)

6.1

8.2

8.2

8.5

14.2

0 5 10 15

Transportation vehicles

Machinery and electrical equipment

Common metals

Mineral Fuels

Machinery and mechaniscalappliances

2.9

3.2

18.5

32.7

34.5

0 10 20 30 40

Travel

Transportation

Other business services

Computer and information services

Construction services


The Portuguese language and the Portuguese communities abroad represent an important asset to Portuguese companies, giving them a comparative advantage in their approach to several fast growing markets and their neighbouring areas

AngolaBrazil

Cape Verde

Guinea Bissau

Mozambique

Portugal

EquatorialGuinea

East Timor

Macau

Countries with relevant Portuguese communities:

India

USA

Canada

France

UK

SwitzerlandLuxemburg

NetherlandsBelgium Germany

Spain

South AfricaArgentina

Venezuela

Australia> 15 000 and < 100 000

> 100 000 and < 500 000

> 500 000 and < 1 000 000

> 1 000 000

São Tomé and Príncipe

The Portuguese language in the world - 2011

1 Data for 2010 referring to countries with Portuguese as official language.Sources: UN, IMF, ES Research.

Population PIB International Trade1

256.5 million EUR 2 225.2 billion EUR 441.9 billion3.7% of world 4.4% of world 2% of world


Strong transport and logistic potential. Portuguese ports can play an important role in the trade flows between America, Africa, Asia and Europe

Potential routes to the Portuguese ports

Sources: IPTM, ES Research - Research Sectorial.

Container cargo, Portuguese ports, 2004 - 2011(Thousand TEUs/year)

Main maritime trade routes from South America and Western Africa are experiencing very strong growth.Portuguese ports are becoming privileged gateways into the European market given the signs of congestion at the major seaports of Europe.

(…)

(…)


Reducing unit labour costs: Increase in the number of workdays and decrease in overtime work compensation.

Labour market flexibility: Lower restrictions in individual dismissals; Reduced severancepayments, in line with EU average; Implementation of working time management mechanisms (e.g. the hour bank).

Ongoing structural reforms will also contribute to higher economic growth

Increased competition in Telecoms: Lower mobile termination rates; more competitive auction rules (e.g. 4G); Broader access of all operators to existing networks.

Reducing excessive mark-ups and increased competition in Electricity: Convergence to market-based pricing, increased choice of service supplier.

Ongoing implementation of the Services Directive: Liberalisation of access to regulated professions.

Competition environment: New Competition Law harmonised with EU practice, strengthening the power of the Competition Authority; Creation of a specialised Court on Competition, Regulation and Supervision.

Rental market reform: Improving contract flexibility and the possibility of rent adjustments.

Improved judicial system: Higher speed and simplification of corporate insolvencies and recoveries; Easier out-of-court settlements.

Labour market reform

Product market reform

Improving business environment


The successful implementation of the privatisation programme underscores the attractiveness of the Portuguese economy to foreign investment and Portugal’s ability to diversify sources of capital and liquidity in a difficult funding environment

Air infrastructure

Electricity distribution Air transportRailway

logisticsTelevision

broadcasting

Water distributionInsuranceEnergy retail

and production

Mail distribution

2011 2012 2013Q1 Q2 Q3 Q4

Sources: Ministry of Finance.

(1)

(1) Concession NOTE: GALP privatisation waits favourable market conditions

The Government sold its stake of 21.35% in EDP to China’s Three Gorges for EUR 2.69 bn; the operation will also involve investments of EUR 2 bn in wind farms and guaranteed funding of EUR 2 bn through Chinese banks. The Government also sold a 25% stake in REN to China’s State Grid (EUR 387 mn) and to Oman Oil (EUR 205 mn).


0

25

50

75

100

125

150

175

200

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

% of

GDP

0

2

4

6

8

10

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011%

do P

IB

Ample external assets provide stability in the face of a tough financing environment. Portugal is one of the main world holders of gold reserves. A privatization programme in currently under way

Portugal’s gold reservesPortugal’s gross external assets (% GDP)

In the face of a difficult financing environment, Portugal benefits from holding ample external assets (170% of GDP in 2011). Also, Portugal is one of the main world holders of gold reserves (estimated at

9.3% of GDP)

9.3170

(% GDP)(% GDP)

511Q12 Results Presentation 15 May 2012Sources: Reuters EcoWin Pro, Bank of Portugal, Other National Central Banks.

The correction of the macroeconomic imbalances is proceeding in a context of financial sector stability, with Bank deposits maintaining an upward trend

Stock of Bank deposits Central Bank liquidity provision (including ELA estimates for Greece and Ireland)

(December 2009 = 100)

(Eur bn)

70%

80%

90%

100%

110%

120%

130%

140%

150%

∆ sinceDec 09

+39%

+20%

-1%

-12%

-27%

Deposits / GDP (Dec. 2011) +138% +215% +104% +84%

Dec 2009 Dec 2010 Dec 20110

20406080

100120140160180200220240260280300

2007 2008 2009 2010 2011 2012

EUR

Billio

n

Portugal(55.4; apr. 2012)

Spain(227.6 Mar. 2012)

Greece(136.9 Mar. 2012)

Ireland(130.1; Mar. 2012)

Italy(272.7 Mar. 2012)


No bubble in house prices. Between 1998 and 2011, Portugal real estate prices have shown very little real growth, in clear contrast with other Euro Area economies

Sources: ECB, Bloomberg, ES Research.

Residential Property, Accumulated Real Price Growth 1

Nominal House Price Index

(1) Accumulated nominal house price growth minus accumulated CPI growth.

The Portuguese housing market faced the recent global financial crisis in a very different cyclical position from those economies such as Ireland or Spain. House price growth has been moderate over the last years, essentially reflecting macroeconomic developments and fundamentals. Portuguese banks haven’t be facing tha hangover of a bubble burst in house prices.

1998 = 100

100

150

200

250

300

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

1998-2011 (%)

7

57

96

44

Portugal eu Ireland spain


Table of contents


repoable assets




reserve



V. Wrap up





Accumulated income statement: domestic and international

Domestic

-

-

88%

7%

-

15%

13%

33%

31%

32%

23%

32%

31%

33%

% Total. Consolidated

-

-

12%

93%

100%

85%

87%

67%

69%

68%

77%

68%

69%

67%

% Total Consolidated

11.8pp51.9%40.1%-21.8pp55.4%77.2%Cost to Income ex-Markets

110.3%22.610.780.3%126.470.1… credit

-0.00.0-1.90.6… securities

64.7%2.81.785.1%37.020.0… other

International

10.3pp

-59.1%

-35.3%

-47.3%

104.8%

-32.1%

3.1%

-18.1%

-

-20.3%

14.9%

-33.6%

YoY

39.6%

56.0

55.0

111.0

12.4

123.4

81.0

204.4

2.5

201.9

55.4

146.6

1Q11

49.9%

22.9

35.6

58.5

25.4

83.8

83.5

167.4

6.5

160.9

63.6

97.2

1Q12

-10.2pp

-

37.4%

-74.4%

82.2%

43.1%

-5.8%

12.6%

-

31.3%

6.4%

58.1%

YoY

52.1%62.3%Cost to Income

-11.416.2= Net Income

19.1

7.7

165.3

173.0

188.4

361.4

21.3

340.1

142.8

197.3

1Q12

13.9

30.2

90.7

120.9

199.9

320.8

61.8

259.0

134.2

124.8

1Q11

- Taxes & Minorities

= Inc. pre-Tax&Min.

- Net Provisions

= Net Oper. Income

- Operating Costs

= Banking Income

+ Capital Mkts & Other

= Commercial Bkg Inc.

+ Fees & Commissions

+ Net Interest Income

(EUR million)

(*) 2011 quarterly staff costs reflect the change of the accounting policy related to emplyees long termbenefits, which in 2011 were accounted in Other Comprehensive Income


Quarterly consolidated income statement*

54.3%

51.4%

11.6

29.3

7.8

-23.5

41.0

25.3

66.2

190.7

229.2

256.9

-

271.9

528.8

-11.4

39.2

501.0

206.5

294.5

1Q12

-11.411.311.311.611.611.611.6Note: Amort. actuarial diff. eliminated

59.8%

-.

-280.6

17.4

7.6

-85.4

7.7

-70.1

-333.4

187.6

200.8

-145.7

298.9

153.2

-236.1

-110.5

499.7

192.4

307.3

4Q11

14.1%27.4%253.8208.4179.9169.3282.7208.0187.9NOI ex-Mkts & Other

57.0%

37.1%

106.4

16.9

7.6

-79.4

50.7

-21.0

102.3

366.5

468.8

276.4

745.2

15.7

244.7

484.8

213.3

271.5

2Q11

-

69.3%

2.0%

-

-

-

-

1.6%

-

-9.0%

-

-

-

0.2%

7.3%

-4.2%

QoQ

2.0%7.67.60000… Special Tax

209.0%0.413.3-0.518.86.734.8… Income Tax

-22.29.0-10.314.3-15.3-4.6… Deferred Taxes

51.8%

51.8%

-6.8

39.2

30.2

62.6

191.0

253.6

272.8

526.4

-33.9

33.7

526.6

195.2

331.4

3Q11

64.2%

46.5%

116.6

61.7

-10.8

167.5

182.8

350.3

303.9

654.2

52.9

128.1

473.2

201.8

271.4

4Q10

61.0%

53.5%

72.3

39.1

29.9

141.3

103.1

244.3

281.0

525.3

-35.9

100.4

460.9

189.6

271.3

1Q11

49.7%

45.9%

134.8

49.0

33.1

216.9

112.0

328.9

279.0

607.9

0.2

46.2

561.7

215.5

346.2

3Q10

57.6%57.8%Cost to Income ex-Markets


-84.0%174.7130.7= Net Income

14.1

-8.6

180.2

123.7

303.9

282.5

586.4

-1.9

97.8

490.5

197.8

292.7

2Q10

21.7

30.2

182.6

115.1

297.7

257.6

555.3

12.7

97.1

445.5

191.8

253.7

1Q10

-24.8%

-15.5%

-53.2%

84.8%

5.1%

-3.2%

0.6%

-

-

8.7%

8.9%

8.6%

YoY

- Minorities

- Taxes

= Income Bef. Tax & Min.

+ Other Results

- Net Provisions

= Net Operating Income

- Operating Costs (restated)

= Banking Income

+ Capital Markets Results

= Commercial Bkg Income

+ Fees and Commissions


(EUR million)

(*) The change in the accounting policy related to emplyees long term benefits, now accounted in Other ComprehensiveIncome, led to a restatement of the staff costs line in 2010 and the previous quarters of 2011


Quarterly domestic income statement*

55.4%

52.1%

-11.4

4.8

14.3

7.7

165.3

151.7

173.0

188.4

361.4

21.3

340.1

142.8

197.3

1Q12

64.1%

-

-311.3

-2.4

-90.9

-404.6

178.1

115.0

-226.5

205.1

-20.8

-340.7

320.0

151.5

168.4

4Q11

32%157%148.0130.559.045.3172.4116.991.0NOI ex-Mkts & Other

56.5%

57.7%

-54.2

2.4

18.0

-33.8

174.7

140.9

190.8

331.7

-7.1

338.8

150.6

188.2

3Q11

-

-

-

-

-7.1%

-

-8%

-

-

6%

-6%

17%

QoQ

77.2%

62.3%

16.2

-0.2

14.2

30.2

90.7

120.9

200.0

320.9

61.8

259.0

134.2

124.8

1Q11

83.1%

49.0%

79.2

25.1

-18.4

85.9

145.5

231.4

222.1

453.5

186.0

267.4

149.8

117.7

4Q10

60.2%

34.1%

79.1

-1.1

-30.5

47.5

335.1

382.6

197.6

580.2

252.1

328.1

163.7

164.4

2Q11

61.9%

56.0%

64.7

0.4

6.7

71.8

90.7

162.5

207.2

369.7

34.8

334.9

163.1

171.8

3Q10

64.9%68.2%Cost to Income ex-Markets


-126.782.6= Net Income

-1.5

-20.5

104.7

101.4

206.1

215.8

421.9

89.2

332.7

147.8

184.9

2Q10

-1.8

16.3

97.1

92.8

189.9

195.1

385.0

98.9

286.1

149.3

136.8

1Q10

-

1%

-

82%

43%

-6%

13%

-65%.

31%

6%

58%

YoY

- Minorities

- Taxes

= Income Bef. Taxes and Min.

- Net Provisions


- Operating Costs (restated)

= Banking Income

+ Capital Mkts & Other Results




(EUR million)

(*) The change in the accounting policy related to emplyees long term benefits, now accounted in Other Comprehensive Income, led to a restatement of the staff costs line in 2010 and in the first three quarters of 2011


Quarterly international income statement

52.4%

54.1%

29.8

19.8

20.8

70.3

9.6

85.5

79.9

94.3

173.9

-5.9

179.8

40.9

138.9

4Q11

51.9%

49.9%

22.9

24.5

10.9

58.5

25.4

77.4

83.8

83.5

167.4

6.5

160.9

63.6

97.2

1Q12

-9%-36%105.977.8120.9123.9155.091.196.9NOI ex-Mkts & Other

43.6%

42.1%

47.3

36.9

12.2

96.4

16.4

112.8

82.0

194.8

7.0

187.9

44.6

143.2

3Q11

-0.5pp

-4.2pp

-23%

24%

-47%

-17%

164%

5%

-11%

-4%

-

-11%

56%

-30%

QoQ

40.1%

39.6%

56.0

39.3

15.7

111.0

12.4

123.4

81.0

204.4

2.5

201.9

55.3

146.6

1Q11

39.8%

40.9%

37.6

36.6

7.4

81.7

37.2

118.9

81.8

200.7

-5.0

205.8

52.0

153.7

4Q10

50.3%

47.8%

27.3

18.0

9.4

54.9

31.3

86.2

78.9

165.1

8.4

156.7

49.6

107.1

2Q11

42.3%

40.5%

48.0

15.6

12.0

75.4

22.3

97.8

66.7

164.5

6.7

157.8

50.0

107.8

2Q10

11.8pp31.6%39.2%Cost to Income ex-Markets

-59%70.148.1= Net Income

10.3pp30.1%36.7%Cost to Income

48.6

26.4

145.1

21.3

166.4

71.8

238.2

11.4

226.8

52.4

174.4

3Q10

23.5

13.9

85.5

22.3

107.8

62.5

170.3

10.9

159.4

42.5

116.9

1Q10

-37%

-30%

-47%

104%

-32%

3%

-18%

160%

-20%

15%

-34%

YoY

- Minorities

- Taxes

= Income Bef. Taxes & Min.

- Net Provisions


- Operating Costs

= Banking Income

+ Capital Mkts & Other Res.




(EUR million)


Strategic triangle income statement: Africa, Brazil and Spain

51.9%

5.8

1.6

7.4

13.3

20.7

22.3

43.0

5.1

37.9

12.5

25.4

1Q11

Spain

60.7%

4.7

0.1

4.8

9.1

13.9

21.4

35.3

0.8

34.6

12.7

21.9

1Q12

8.8pp

-20%

-

-35%

-31%

-33%

-4%

-18%

-85%

-9%

1%

-14%

YoY

Strategic TriangleBrazilAfrica*

20.6%

27.2

47.5

74.7

4.8

79.5

20.7

100.1

5.3

94.8

7.5

87.3

1Q11

31.6%

13.6

34.9

48.5

7.0

55.5

25.6

81.1

11.8

69.3

23.1

46.2

1Q12

11pp

-50%

-27%

-35%

-52%

-38%

13%

-28%

27%

-33%

152%

-51%

YoY

40.7%

25.3

40.6

65.9

16.8

82.7

56.7

139.4

10.7

128.7

45.7

83.0

1Q12

-0.7pp

24%

1%

-12%

-59%

4%

1%

3%

5%

3%

-1%

6%

YoY

42.7%

5.7

5.6

11.3

1.5

12.8

9.6

22.4

-1.8

24.2

10.1

14.1

1Q11

8.9pp

-35%

-26%

-29%

-15%

-27%

8%

-16%

24%

-18%

52%

-34%

YoY

42.0%

7.0

5.7

12.7

0.6

13.3

9.7

23.0

-1.9

24.9

10.0

14.9

1Q12

31.8%Cost to Income

38.7= Net Income

54.7

93.4

19.6

113.0

52.6

165.5

8.6

156.9

30.1

126.8

1Q11

- Taxes & Min.

= Income Bef. Tax & Min.

- Net Provisions

= Net Op. Income

- Operating Costs

= Banking Income

+ Markets & Other

= Com. Bkg Income

+ Fees and Com.


(EUR million)

* Comprising Angola, Cape Verde, Mozambique and Libya


Angola: Quarterly income statement

815.0

4,061.9

6,759.7

30.0%

12.5

32.6

45.1

7.0

52.0

22.4

74.4

8.8

65.6

20.8

44.8

1Q12

721.3

3,946.3

6,867.0

25.7%

21.0

36.6

57.6

10.7

68.3

23.6

91.9

-1.1

93.0

5.9

87.1

4Q11

653.6

3,579.5

6,880.8

19.4%

29.0

50.3

79.3

7.4

86.7

20.8

107.5

9.4

98.0

5.8

92.3

3Q11

1.8%

2.9%

-1.3%

4pp

-41%

-11%

-22%

-35%

-24%

-5%

-19%

-

-29%

-

-49%

QoQ

39.3%556.1526.9485.7419.0369.0303.1Equity

3,029.4

6,210.1

19.5%

27.1

47.3

74.4

4.7

79.2

19.2

98.3

5.3

93.0

6.2

86.8

1Q11

3,221.2

5,992.8

26.7%

14.6

25.6

40.2

5.1

45.3

16.5

61.8

-1.8

63.6

6.3

57.3

2Q11

2,823.6

5,923.9

18.6%

26.3

46.6

72.9

14.2

87.1

20.0

107.1

8.8

98.3

6.0

92.3

4Q10

2,443.1

5,520.8

35.2%

10.8

18.6

29.5

3.0

32.4

17.6

50.0

3.9

46.1

7.5

38.6

2Q10 (EUR million)

2,553.9

5,211.6

15.7%

35.8

63.1

98.9

3.8

102.7

19.2

121.9

-0.5

122.4

6.3

116.1

3Q10

1,966.9

4,775.5

22.8%

18.0

30.4

48.4

2.3

50.7

14.9

65.6

11.2

54.4

5.8

48.7

1Q10

9.2%Total Assets

34.1%Total Credit (Gross)

11ppCost to Income

-29%= Commercial Bkg Income

-54%= Net Income

-31%

-40%

47%

-34%

17%

-24%

65%

-

-48%

YoY

- Taxes & Minority Interests


- Net Provisions


- Operating Costs

= Banking Income

+ Capital Mkts & Other




Brazil: Quarterly income statement

2,645.7

58.0%

1.8

8.2

10.1

-1.5

8.5

11.8

20.4

2.7

17.7

3.2

14.4

4Q11

2,425.7

42.0%

7.0

5.7

12.7

0.6

13.3

9.7

23.0

-1.9

24.9

10.0

14.9

1Q12

2,502.1

49.7%

5.0

4.4

9.4

0.0

9.4

9.3

18.7

-1.8

20.5

6.9

13.6

3Q11

%

16.0pp

-

-31%

26%

-

56%

-18%

13%

-

41%

-

3%

QoQ

2,755.7

42.7%

5.7

5.6

11.3

1.5

12.8

9.6

22.4

-1.8

24.2

10.1

14.1

1Q11

%2,711.42,672.22,301.52,340.51,962.4Assets

40.4%

8.0

5.6

13.6

1.6

15.2

10.3

25.5

3.0

22.6

11.9

10.7

2Q11

55.8%

6.1

1.8

7.9

1.2

9.1

10.2

19.2

-3.2

22.4

8.5

14.0

4Q10

40.2%

7.3

6.0

13.3

-0.1

13.2

8.9

22.1

0.2

21.9

7.9

14.0

2Q10(EUR million)

28.0%

15.7

7.8

23.4

1.4

24.8

9.6

34.5

7.8

26.7

13.9

12.8

3Q10

51.6%

3.1

2.3

5.4

2.6

8.0

8.5

16.5

-2.8

19.3

6.8

12.5

1Q10

-0.7ppCost to Income

3%= Commercial Bkg Income

24%= Net Income

1%

12%

-

4%

1%

3%

5%.

-1%

6%

YoY



- Net Provisions


- Operating Costs

= Banking Income

+ Capital Markets & Other




Spain: Quarterly income statement

5,302.5

115 bp

3,495.1

60.1%

5.0

-1.4

3.5

11.1

14.6

21.9

36.5

0.8

35.7

14.0

21.7

4Q11

5,139.2

94 bp

3,371.5

60.7%

4.7

0.1

4.8

9.1

13.9

21.4

35.3

0.8

34.6

12.7

21.9

1Q12

4,874.2

161 bp

3,564.8

64.5%

-1.7

-1.0

-2.7

14.4

11.6

21.1

32.7

-0.1

32.8

12.3

20.5

3Q11

-3.1%

-21bp

-3.5%

0.6pp

-6%

-

35%

-17%

-5%

-2%

-3%

-

-3%

-9%

1%

QoQ

5,502.6

142 bp

3,736.4

51.9%

5.8

1.6

7.4

13.3

20.7

22.3

43.0

5.1

37.9

12.5

25.4

1Q11

4,792.0

178 bp

3,690.5

54.1%

0.8

-0.6

0.2

16.9

17.2

20.3

37.5

2.5

34.9

12.7

22.3

2Q11

5,498.4

60 bp

4,093.7

64.7%

2.6

1.0

3.5

8.8

12.4

22.7

35.1

-0.5

35.6

11.1

24.5

4Q10

5,722.3

105 bp

4,197.7

55.0%

5.6

0.5

6.0

11.1

17.2

21.0

38.1

1.4

36.7

12.8

23.9

2Q10(EUR million)

5,527.0

103 bp

4,111.7

60.1%

2.1

1.8

3.9

10.7

14.6

22.0

36.7

2.2

34.5

12.8

21.7

3Q10

6,029.4

141 bp

4,156.1

56.9%

2.5

0.4

2.9

14.6

17.5

23.1

40.7

1.6

39.1

14.6

24.5

1Q10

-48bpCost of Risk (bp)

-9.8%Credit (Gross)

8.8ppCost to Income


-20%= Net Income

-6.6%

-

-35%

-31%

-33%

-4%

-18%

-85-

1%

-14%

YoY

Assets



- Net Provisions


- Operating Costs

= Banking Income





UK: Quarterly income statement

1,930.5

-

-0.4

2.6

2.2

-14.7

-12.5

17.3

4.8

-8.7

13.6

5.7

7.8

4Q11

2,122.5

88.9%

-2.1

-5.0

-7.2

8.9

1.7

13.5

15.2

-4.8

20.0

12.2

7.8

1Q12

2,079.1

93.5%

11.5

-4.0

7.5

-6.2

1.3

18.7

20.0

-2.6

22.6

13.0

9.6

3Q11

9.9%

-

-

-

-

-

-

-22%

-

-45%

47%

114%

-1%

QoQ

2,349.2

76.2%

10.2

-0.2

10.0

-4.3

5.7

18.3

24.0

-7.2

31.1

18.4

12.8

1Q11

2,122.5

92.9%

-2.7

-3.6

-6.3

7.6

1.3

17.5

18.9

0.6

18.2

8.5

9.7

2Q11

2,699.1

84.9%

-2.5

-6.7

-9.1

11.5

2.3

13.1

15.4

-10.8

26.2

13.3

12.9

4Q10

2,986.9

14.0%

20.9

2.2

23.1

3.6

26.7

4.4

31.1

0.8

30.3

11.3

19.0

2Q10(EUR million)

2,814.4

16.5%

20.5

1.9

22.4

-0.2

22.2

4.4

26.7

-0.3

26.9

6.5

20.5

1Q10

2,979.7

22.0%

8.3

2.9

11.2

6.1

17.3

4.9

22.2

1.2

20.9

5.7

15.2

3Q10

-9.7%Credit (Gross)

-Cost to Income


-= Net Income

-

-

-23%

-28%

3%

-1%

-56%

-8%

-40%

YoY



- Net Provisions


- Operating Costs

= Banking Income





Quarterly Net Interest Income(N

IM in

bp;

Qua

rterly

Fig

ures

)

254

293

346

271

271

272

331

307

295

258

253

269

306

315

335

300

250

171174187

155156152

190161

141176 169

167 188193 171199

141

0

50

100

150

200

250

300

350

400

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

0

50

100

150

200

NII

NIM

454 455 507 546 562437397401380375423 406 395

4.524.22

3.923.553.553.32.983.08

3.583.38 3.25

3.02 3.03

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

Credit NII (LHS, Eur mn) Credit Margin (RHS, %)

-206-173

-146-129-136-110

-66-57-52-41-39-36

-47

-2.39-2.0-1.78-1.64-1.78

-1.45

-0.97-0.88-0.83-0.66-0.61-0.59-0.74

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

Deposits NII (LHS, Eur mn) Deposits Margin (RHS, %)

Credit Margin Deposit Margin

Quarterly Net Interest Income & NIM Euribor 3M (quarterly average)(%)

0.66 0.69 0.87 1.02 1.091.41 1.56 1.50

1.04

4.484.86 4.98

4.21

2.01

1.310.87 0.72

0

1

2

3

4

5

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

75

95

115

135

155

175

195


Quarterly fees & commissions

(1) Includes trade finance and letters of credit(2) Includes Brokerage(3) Includes discretionary management

Note: Changes calculated based on figures in thousand euros.

192.1

26.0

2.2

2.7

11.1

15.9

18.2

35.5

12.0

18.6

27.9

22.1

4Q11

206.4

36.2

1.8

19.1

10.0

19.9

18.4

17.3

15.9

19.4

29.1

19.3

1Q12

195.4

16.2

2.2

10.3

10.2

21.2

19.5

27.4

10.8

32.9

24.9

20.0

3Q11

7%

40%

-19%

n.m.

-10%

26%

1%

-51%

32%

4%

4%

-13%

QoQ

189.6

16.8

1.9

11.7

9.7

23.7

29.6

25.6

15.0

12.3

23.8

19.4

1Q11

213.3

16.1

2.0

10.2

10.0

25.0

22.6

36.9

21.9

21.4

27.7

19.6

2Q11

201.8

17.8

2.1

12.9

10.8

26.1

14.8

28.4

15.6

15.4

35.3

22.4

4Q10

197.8

21.3

1.9

17.0

9.8

24.7

12.1

23.6

17.2

16.3

32.6

21.2

2Q10

191.8

20.6

2.2

13.0

8.9

25.2

15.6

18.1

13.9

27.6

27.1

19.6

1Q10

215.5

17.8

2.2

13.5

10.5

25.9

8.4

22.1

22.8

35.0

35.8

21.6

3Q10

9%

115%

-6%

63%

3%

-16%

-38%

-32%

6%

57%

22%

-1%

YoY

Trade Finance & Exp. related (1)

Corporate & Project Finance

Other

Bancassurance

Factoring

Guarantees

Total Fees & Commissions

Cards

Asset Management (3)

Securities related fees (2)

Commissions on Loans

Account Management Fees

(EUR million)


Quarterly capital markets results and VAR

-122.1

11.6

-110.5

25.6

-88.8

-63.3

-9.1

19.0

-36.5

-47.2

4Q11

37.3

1.9

39.2

36.7

-78.4

-41.7

-0.5

23.3

58.1

80.9

1Q12

28.6

5.3

33.9

1.2

-131.5

-130.3

18.2

99.6

46.4

164.2

3Q11

188.8

55.8

244.6

136.7

100.3

237.0

-12.2

14.3

5.5

7.6

2Q11

99.8

0.6

100.4

4.3

45.6

49.9

4.3

8.4

37.8

50.5

1Q11

88.7

39.4

128.1

116.9

144.9

261.8

-8.0

-147.7

22.0

-133.7

4Q10

41.2

4.8

46.0

7.5

-19.6

-12.1

22.9

44.7

-9.5

58.1

3Q10

81.8

16.0

97.8

65.7

32.7

98.4

28.7

-32.3

3.0

-0.6

2Q10

80.7

16.4

97.1

3.2

45.2

48.4

16.0

18.3

14.4

48.7

1Q10

Capital Markets net of Provisions for securities

… Interest rate

… Credit

… FX & Other

Provisions for Securities

Capital market results

… Income from securities

… Trading

Equity

Interest Rate, Credit & FX

(EUR million)


64

36

3

24

-115

88

2835

25

51 50 54 53 55

1935

26

51

84

13

46

80 82

44

66 68 73

196

3955

72

155

-14

16

48

124108

97 98

46

128

100

245

34 39

-4

49

27

2

84

109

109

1Q99

2Q99

3Q99

4Q99

1Q00

2Q00

3Q00

4Q00

1Q01

2Q01

3Q01

4Q01

1Q02

2Q02

3Q02

4Q02

1Q03

2Q03

3Q03

4Q03

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Quarterly capital markets results

Quarterly history of capital markets results since 1999

(EUR mn)

Excludes the one-offimpact of Eur 107mn related to the partial

transfer of the pension fundto the Social Security


Quarterly equity accounted earnings and other results

-236.1

-21.0

-57.5

4.7

-183.3

-178.6

4Q11

-33.9

-23.0

-24.5

3.1

-12.6

-9.5

3Q11

15.7

-7.2

6.9

9.0

-0.2

8.8

2Q11

-35.9

-38.6

-40.0

1.2

2.9

4.1

1Q11

-11.4

-10.4

-14.8

3.6

-0.2

3.4

1Q12

0.2

1.9

-16.5

11.4

5.3

8.4

3Q10

52.9

35.4

44.9

4.8

3.2

8.0

4Q10

-2.6-0.6… Results from sale other assets

1.73.8… Other

-14.14.1Other Results, ow

12.7

4.8

8.6

1Q10

-1.9

2.2

12.2

2Q10

Equity Accounted Earnings and Other Results (Quarterly)

Total Equity Accounted and Other Results

… BES Vida

Equity Accounted Earnings

(EUR million)

-89.9

-115.1

-193.2

-175.2

FY11

-68.8

-57.5

-9.9

3.4

9M11

-14.8-33.1-40.018.4-26.5-10.04.1Other Results, ow

-33.1

2.7

12.9

6M11

-40.0

2.9

4.1

3M11

-10.4

-0.2

3.4

3M12

-26.5

12.3

29.2

9M10

-10.0

7.0

20.8

6M10

4.1

4.8

8.6

3M10

18.4

15.5

37.2

FY10

Equity Accounted Earnings and Other results (Accumulated)

… Results from sale of other assets

… BES Vida

Equity Accounted Earnings, ow

(EUR million)


Quarterly other results: Reconciliation between IFRS P&L and Presentation

-13.8

-7.6

41.5

6.4

3.9

4Q11

-1.4

-7.6

192.1

7.7

190.7

3Q11

14.1

-7.6

111.4

9.3

127.2

2Q11

-1.4

-7.6

36.0

9.0

36.0

1Q11

-7.8--------… Special Tax on Banks

9.5

-29.1

6.2

-13.4

4Q10

-10.0

-7.6

12.6

-5.1

3Q10

-11.4

-8.1

8.2

-11.2

2Q10

-4.44.6-2.2-24.1-11.7-7.2… Other

-16.7

14.2

-4.8

4Q09

0.8

10.7

16.1

1Q10

13.3

9.1

-1.7

3Q09

10.2

5.3

3.8

2Q09

96.5

9.2

98.5

1Q09

Quarterly

32.3… Capital Markets

10.1… Fees

30.2Other Results (IFRS), ow

1Q12(EUR million)

-25.1

-30.5

381.0

32.4

357.8

FY11

11.3

-22.9

339.5

26.0

353.9

9M11

12.7

-15.2

147.4

18.3

163.2

6M11

-1.4

-7.6

36.0

9.0

36.0

3M11

-7.8--------… Special Tax Banks

-7.3

-44.0

37.7

-13.6

FY10

-16.8

-14.9

31.5

-0.2

9M10

-6.8

-7.3

18.9

4.9

6M10

-4.44.6-45.2-43.0-18.9-7.2… Other

0.8

10.7

16.1

3M10

103.3

37.8

95.8

FY09

120.0

23.6

100.6

9M09

106.7

14.5

102.3

6M09

96.5

9.2

98.5

3M09

Accumulated

32.3… Capital Markets

10.1… Fees

30.2Other Results (IFRS), ow

3M12(EUR million)


Breakdown of operating costs*

298.9

29.1

120.3

20.3

2.9

126.2

149.5

4Q11

272.8

26.5

98.1

23.9

6.8

117.5

148.2

3Q11

-9.0%

-8.2%

-15.0%

16.2%

65.5%

-9.1%

-4.3%

QoQ

271.9

26.6

102.2

23.6

4.8

114.7

143.1

1Q12

280.9

26.1

107.5

24.6

6.8

116.0

147.4

1Q11

276.5

26.2

107.9

24.3

6.2

111.9

142.4

2Q11

303.9

24.3

117.2

20.9

13.1

128.5

162.4

4Q10

282.6

26.8

113.3

17.2

9.0

116.3

142.4

2Q10

257.5

23.7

100.6

16.5

8.7

108.1

133.2

1Q10

-4.0%17.3…Long term service benefits & Other

-29.4%13.5…Pension Benefits (restated)

279.1

25.3

109.9

113.0

143.8

3Q10

-3.2%

2.0%

-4.9%

-1.1%

-2.9%

YoY

…Remunerations

Admin costs

Total Operating Costs

Depreciation

Staff costs

Quarterly Operating Costs(EUR million)

(*) The change in the accounting policy related to employees long term benefits, now accounted in Other Comprehensive Income, led to a

restatement of the staff costs line in 2010 and the first three quarters of 2011


Breakdown of quarterly operating costs: domestic* and international

93.8

8.0

31.1

1.8

1.1

51.9

54.7

205.1

21.1

89.1

18.5

1.9

74.4

94.8

4Q11

-10.9%

-13.7%

-9.0%

16.7 %

-27.3 %

-12.5 %

-11.5%

-8.1%

-6.2%

-17.1%

15.7%

110.5%

-6.9%

-0.1%

QoQ

83.5

6.8

28.3

2.1

0.8

45.4

48.4

188.4

19.8

73.9

21.4

4.0

69.3

94.7

1Q12

82.0

6.2

27.8

1.3

0.8

45.9

48.0

190.8

20.2

70.4

22.7

6.0

71.6

100.2

3Q11

81.0

5.8

28.9

2.2

0.9

43.2

46.3

199.9

20.3

78.6

22.4

5.8

72.8

101.1

1Q11

78.9

6.2

29.3

2.2

0.8

40.3

43.3

197.6

20.0

78.6

22.1

5.3

71.6

99.1

2Q11

81.9

4.7

30.4

5.0

0.4

41.4

46.8

222.0

19.6

86.8

15.8

12.7

87.0

115.6

4Q10

71.8

6.4

25.2

1.9

1.1

37.2

40.2

207.3

18.9

84.7

15.5

12.4

75.7

103.6

3Q10

62.5

4.3

21.0

1.1

0.8

35.2

37.2

195.0

19.3

79.6

15.3

7.8

73.0

96.1

1Q10

-4.5%2.3… Long term service benefits & Other

-4.5%14.9…Long term service benefits & Other

-31.0%8.0…Pension Benefits

5.1%34.1…Remunerations

4.5%37.4Staff Costs

International

66.7

5.3

24.0

1.0

215.9

21.6

89.3

82.2

105.1

2Q10

3.1%

18.3%

-2.1%

-11.1%

-5.8%

-2.6%

-6.0%

-4.8%

-6.3%

YoY

…Remunerations

International Operating Costs

Admin costs

Depreciation

Admin costs

…Pension Benefits

Domestic Operating Costs

Depreciation

Staff costs

Domestic

(EUR million)

(*) The change in the accounting policy related to employees long term benefits, now accounted in Other Comprehensive Income, led to a restatement of the staff

costs line in 2010 and the first three quarters of 2011


Quarterly provisions

9.6

178.1

187.6

28.6

11.6

33bp

9.0

137bp

138.3

115bp

147.4

4Q11

-7.2%82.2%165.3174.7335.190.7145.590.7101.492.8… Domestic

164.6%104.8%25.416.431.312.437.221.322.322.3… International

190.7

39.8

1.9

82bp

22.5

126bp

126.4

117bp

149.0

1Q12

366.5

86.1

55.7

104bp

27.2

191bp

197.4

174bp

224.6

2Q11

191.0

37.9

5.3

59bp

15.4

128bp

132.4

114bp

147.8

3Q11

85.1%

84.3%

-

42bp

110.3%

58bp

80.3%

54bp

84.2%

YoY

1.6%

39.1%

-83.6%

49bp

150%

-11bp

-8.6%

2bp

1.1%

QoQ

103.0

21.6

0.6

40bp

10.7

68bp

70.1

63bp

80.9

1Q11

182.8

49.7

39.4

110 bp

30.8

61 bp

62.9

71 bp

93.7

4Q10

112.0

23.6

4.8

68 bp

19.5

62 bp

64.1

63 bp

83.6

3Q10

115.1

18.7

16.4

74bp

19.9

59bp

60.1

62bp

80.0

1Q10

123.7

13.2

16.0

78 bp

22.9

69 bp

71.6

71 bp

94.5

2Q10

cost of risk (bp)

… Domestic

cost of risk (bp)

… International

…Securities

…Other

cost of risk (bp)

…Credit

Total Provisions

(EUR million)

Note: Detailed credit provisions and asset quality data in following slides


Quarterly taxes: domestic and international

-23.5-85.422.2-79.49.0-10.514.5-15.3-4.6Deferred taxes

International

2.71.8-7.67.27.5-3.817.03.88.7Income Tax

8.319.119.82.38.210.09.58.25.2Deferred taxes

11.020.912.29.515.77.326.611.913.9Total international taxes

-70.1

7.6

7.7

-91.0

7.6

-104.5

5.9

4Q11

41.00.450.813.2-1.718.76.734.7Income Tax

7.87.67.67.6----Banking sector special tax

25.3

14.3

7.8

-31.8

38.3

1Q12

-21.0

-30.5

7.6

-81.7

43.6

2Q11

29.9

14.2

7.6

0.8

5.7

1Q11

30.2

18.0

7.6

2.4

8.0

3Q11

-11.1

-18.4

-

-20.5

2.1

4Q10

33.3

6.7

-

5.0

1.7

3Q10

30.1

16.2

-

-9.8

26.0

1Q10

-Banking sector special tax

Consolidated

-8.6

-20.5

-23.5

2.9

2Q10

Deferred taxes

Total international taxes

Total domestic taxes

Income Tax

Domestic

(EUR million)


Quarterly balance sheet: assets

80,237

3,031

712

29

807

230

852

-

1,647

510

-

1,541

(2,167)

49,043

3,283

11,483

1,964

3,435

581

1,090

Dec 11

81,265

3,614

714

31

858

227

834

-

1,827

468

-

1,183

(2,271)

48,713

2,288

12,438

2,096

3,885

562

1,527

Mar 12

82,767

4,467

375

40

948

223

823

-

674

435

-

2,092

(2,101)

49,933

4,049

12,137

1,487

3,458

610

1,015

Sep 11

1%

19%

-

8%

6%

-2%

-2%

-

11%

-8%

-

-23%

5%

-1%

-30%

8%

7%

13%

-3%

40%

QoQ

80,746

3,886

292

99

961

230

780

-

605

296

-

2,349

( 1,790)

49,862

3,765

10,777

1,525

3,398

671

1,252

Mar 11

80,162

4,704

377

108

961

221

798

-

637

329

-

2,252

(1,983)

49,718

3,439

10,925

1,063

3,007

538

1,085

Jun 11

83,655

4,083

283

99

962

234

809

-

575

447

-

2,459

(1,777)

50,829

4,245

11,775

1,424

3,942

558

931

Dec 10

82,137

3,719

220

29

868

153

792

-

636

524

-

2,606

(1,725)

51,032

2,596

11,642

1,618

4,300

555

847

Sep 10

84,874

3,705

237

25

852

153

746

-

486

533

-

2,757

(1,682)

51,674

3,570

10,115

1,611

5,966

501

1,943

Jun 10

1%

-7%

144%

-69%

-11%

-1%

7%

-

202%

58%

-

-50%

27%

-2%

-39%

15%

37%

14%

-16%

22%

YoY

84,098Total Assets

3,670Other assets

191Deferred income tax assets

18Current income tax assets

872Investments in associated companies

135Intangible assets

712Other tangible assets

-Investment property

440Non current assets held for sale

486Hedging derivatives

-Financial Assets with repurchase agreements

2,664Held to maturity investments

(1,609)(Provisions)

49,898Loans and advances to customers

6,635Loans and advances to banks

9,058Financial assets available for sale

2,653Financial assets fair value through P&L

4,041Financial assets held for trading

509Deposits with banks

2,115Cash and deposits at central banks

Mar 10(Eur mn)


Quarterly balance sheet: liabilities

74,045

1,321

961

-

111

45

190

141

239

-

18,453

34,206

6,239

-

2,125

10,014

Dec 11

74,875

1,996

946

-

115

46

166

141

182

-

15,116

35,959

4,950

-

1,943

13,316

Mar 12

75,863

1,950

1,158

-

94

24

200

5

225

-

18,649

33,854

6,170

-

2,113

11,422

Sep 11

1%

51%

-2%

-

4%

2%

-13%

-

-24%

-

-18%

5%

-21%

-

-9%

33%

QoQ

73,386

1,603

2,327

-

110

27

212

5

217

-

20,742

30,545

7,199

-

1,875

8521

Mar 11

73,175

1,642

1,578

-

79

25

207

5

230

-

19,907

31,972

5,961

-

1,895

9,673

Jun 11

76,179

1,935

2,292

-

116

25

215

5

229

-

24,110

30,819

6,381

-

2,088

7,965

Dec 10

74,874

1,226

2,311

-

94

84

192

43

214

-

25,643

29,923

6,215

-

2,275

6,654

Sep 10

76,978

1,219

2,306

-

70

126

172

26

215

-

33,062

26,522

7,302

-

1,736

4,222

Mar 10

2%

25%

-59%

-

5%

67%

-22%

-

-16%

-

-27%

18%

-31%

-

4%

56%

YoY

77,959Total Liabilities

1,197Other liabilities

2,306Other subordinated loans

-Instruments representing capital

92Deferred income tax liabilities

97Current income tax liabilities

180Provisions

35Non current liabilities held for sale

241Hedging derivatives

-Financial liabilities assoc. to transferred assets

29,451Debt securities

26,082Due to customers

7,112Deposits from banks

-Financial assets at fair value through P&L

2,169Financial liabilities held for trading

8,996Amounts owed to central banks

Jun 10(Eur mn)


Quarterly balance sheet: equity

6,192

588

-

(109)

1,447

(1,086)

212

(1)

30

1,082

4,030

5,713

Dec 11

6,389

609

-

12

1,330

(900)

199

(1)

29

1,082

4,030

5,769

Mar 12

6,904

634

-

138

1,337

(467)

409

(1)

269

1,085

3,500

6,132

Sep 11

3%

4%

-

-

-8%

-

-6%

-

-1%

-

-

1%

QoQ

7,361

562

-

61

1,317

(33)

600

(1)

269

1,085

3,500

6,738

Mar 11

6,987

583

-

156

1,322

(383)

456

(1)

269

1,085

3,500

6,274

Jun 11

7,476

541

-

511

979

( 10)

600

-

270

1,085

3,500

6,474

Dec 10

7,263

412

-

405

993

292

600

(25)

-

1,085

3,500

6,446

Sep 10

7,120

315

-

119

1,198

326

600

(25)

-

1,086

3,500

6,686

Mar 10

6,915

390

-

282

1,023

60

600

(25)

-

1,085

3,500

6,243

Jun 10

-13%

8%

-

-81%

1%

-

-67%

-

-89%

-

15%

-14%

YoY

Total Equity

Minority interests

Anticipated dividends

Net Profit for the period / year

Other reserves and retained earnings

Fair value reserve

Preference shares

Treasury stock

Other capital instruments

Share premium

Share capital

Shareholders' Equity

(Eur mn)


Quarterly loan portfolio (including securitised)

21%

10,846

43,241

54,087

9,725

27,160

36,885

586

2,130

2,715

535

13,951

14,486

17,202

Dec 11

20%

10,972

42,834

53,806

9,885

27,038

36,923

565

2,013

2,578

522

13,783

14,305

16,917

Mar 12

19%

10,534

44,431

54,965

9,718

28,159

37,877

334

2,228

2,562

483

14,044

14,527

17,089

Sep 11

1.2%

-0.9%

-0.5%

1.6%

-0.4%

-

-3.6%

-5.5%

-5.0%

-2.4%

-1.2%

-1.2%

-1.7%

QoQ

20%

10,686

44,011

54,697

9,878

27,441

37,319

335

2,348

2,683

473

14,222

14,695

17,378

Mar 11

19%

10,460

44,229

54,689

9,645

27,764

37,409

341

2,305

2,646

474

14,160

14,634

17,280

Jun 11

20%

11,187

44,527

55,713

10,349

27,734

38,083

354

2,468

2,822

483

14,325

14,808

17,630

Dec 10

20%

11,403

44,427

55,929

10,577

27,701

38,278

329

2,428

2,757

496

14,398

14,894

17,651

Sep 10

20%

10,810

44,054

54,864

9,972

27,164

37,136

333

2,461

2,794

504

14,429

14,933

17,728

Mar 10

21%

11,673

44,925

56,597

10,833

27,990

38,823

343

2,451

2,794

497

14,484

14,981

17,775

Jun 10

2.7%

-2.7%

-1.6%

0.1%

-1.5%

-1.2%

68.6%

-14.3%

-3.9%

10.3%

-3.1%

-2.6%

-2.7%

YoY

… International

… Domestic

Loan portfolio

… International

Int as % total

… ow Other

… Domestic

Corporate Lending

… International

… Domestic

… International

… Domestic

… ow Mortgages

Loans to Individuals

(EUR million)

(1) Considering the outstanding amounts of securitised credit. Securitised credit only includes domestic loans.


Quarterly gross loan portfolio (excluding securitised)

21%

10,846

40,365

51,211

9,725

27,160

36,885

586

2,130

2,716

535

11,075

11,610

14,326

Dec 11

21%

10,972

40,012

50,984

9,885

27,003

36,889

565

2,034

2,599

522

10,975

11,496

14,095

Mar 12

20%

10,534

41,499

52,033

9,717

28,159

37,876

334

2,228

2,562

483

11,112

11,595

14,157

Sep 11

1.2%

-0.9%

-0.4%

1.6%

-0.6%

-

-3.6%

-4.5%

-4.3%

-2.4%

-0.9%

-1.0%

-1.6%

QoQ

21%

10,686

40,966

51,652

9,878

27,441

37,319

335

2,348

2,683

473

11,177

11,650

14,333

Mar 11

20%

10,460

41,241

51,701

9,645

27,764

37,409

341

2,305

2,646

474

11,172

11,646

14,292

Jun 11

21%

11,187

41,420

52,606

10,349

27,734

38,083

354

2,468

2,822

483

11,218

11,701

14,523

Dec 10

22%

11,403

41,354

52,757

10,577

27,701

38,279

329

2,428

2,757

496

11,225

11,722

14,479

Sep 10

21%

10,810

40,697

51,507

9,972

27,164

37,137

333

2,461

2,794

504

11,072

11,576

14,371

Mar 10

22%

11,673

41,682

53,355

10,833

27,990

38,823

343

2,451

2,794

497

11,242

11,739

14,532

Jun 10

2.7%

-2.3%

-1.3%

0.1%

-1.6%

-1.2%

68.6%

-13.4%

-3.1%

10.3%

-1.8%

-1.3%

-1.7%

YoY

… International

… Domestic

Loan portfolio

… International

Int as % total

… ow Other

… Domestic

Corporate Lending

… International

… Domestic

… International

… Domestic

… ow Mortgages

Loans to Individuals

(EUR million)


Quarterly asset quality indicators

33bp

137bp

115bp

4.23%

140.2%

3.56%

4.98%

0.84%

3.02%

154.5%

2.74%

Dec 11

59bp

128bp

114bp

4.04%

141.6%

3.33%

4.87%

0.85%

2.85%

155.0%

2.60%

Sep 11

104bp

191bp

174bp

3.83%

148.3%

3.00%

4.55%

0.82%

2.59%

163.0%

2.35%

Jun 11

40bp

68bp

63bp

3.47%

145.4%

2.27%

4.46%

0.84%

2.38%

159.4%

2.17%

Mar 11

82bp

126bp

117bp

4.45%

127.8%

4.18%

5.40%

0.83%

3.48%

150.3%

2.96%

Mar 12

68 bp

62 bp

63 bp

3.27%

157.8%

2.30%

4.14%

0.84%

2.07%

172.5%

1.90%

Sep 10

110 bp

61 bp

71 bp

3.38%

160.6%

2.36%

4.08%

0.80%

2.10%

173.0%

1.95%

Dec 10

74 bp

59 bp

62 bp

3.12%

160.7%

2.16%

3.59%

0.86%

1.94%

187.5%

1.67%

Mar 10

1.70%Overdue Loans >90 days / Gross Loans

184.9%Coverage of Overdue Loans > 90 days

2.09%Corporates (>30d)

3.64%Consumer (>30d)

0.82%Mortgage (>30d)

69 bp… Domestic

78 bp… International

71 bpQoQ Provision Charge

166.3%Coverage of Overdue Loans >30 days

3.15%Provisions for Credit / Total Gross Loans


Jun 10


1.67% 1.70%1.90% 1.95%

2.17%2.35%

2.96%

2.60%2.74%

188% 185%

173% 173%

159%163%

155% 155%150%

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q121.03%

0.23%

0.74%

0.37%

1.23%

0.88%

1.29%

0.91%

2.05%

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

Overdue loans ratios and coverage

Total Overdue Loans Ratio (+30d) & Coverage (%)

Net New Entries as % of Performing Loans

(quarterly annualised)Quarterly Write Offs (Eur mn)

Overdue Loans +90 days Ratio & Coverage (%)

22.8 20.0 14.1 34.8 30.0

1.94% 1.90% 2.07% 2.10% 2.38% 2.59%

3.48%3.02%2.85%

161%166%

158% 161%145% 148% 142% 140%

128%

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

5.0 16.4 50.5 21.8


Quarterly asset quality indicators: Domestic and International

301.6

1,865.9

2,167.4

280.1

1,123.2

1,403.3

308.9

1,236.7

1,545.6

10,846

40,365

51,211

Dec 11

301.8

1,798.7

2,100.6

253.9

1,101.3

1,355.2

269.9

1,213.5

1,483.4

10,534.3

41,499.2

52,033.5

Sep 11

287.8

1,694.8

1,982.6

220.2

996.0

1,216.2

236.0

1,101.1

1,337.1

10,459.7

41,240.9

51,700.5

Jun 11

273.8

1,516.3

1,790.1

191.0

931.7

1,122.7

212.8

1018.7

1,231.5

10,685.8

40,966.3

51,652.1

Mar 11

335.2

1,935.9

2,271.2

268.5

1,242.3

1,510.8

287.9

1,488.6

1,776.5

10,972

40,012

50,984

Mar 12

256.0

1,469.2

1,725.3

167.9

833.1

1,000.1

192.5

900.9

1,093.4

11,402.7

41,354.3

52,757.0

Sep 10

1,494.71,421.91,367.1…Domestic

282.3259.6241.8… International

913837.4812.4…Domestic

193.3174.0189.0… International

1,777.0

176.7

850.4

1,027.1

1,106.7

11,186.5

41,419.6

52,606.1

Dec 10

41,682.340,697.3…Domestic

11,672.810,809.8… International

764.6719.0…Domestic

144.7139.0… International

1,608.9

858.0

1,001.3

51,509.2

Mar 10

53,355.1Gross Loans

1,011.4Total Overdue Loans (> 30 days)

1,681.5Total Credit Provisions (BS)

909.3Overdue Loans > 90 days

Jun 10(EUR million)


Quarterly asset quality indicators: Domestic and International

97.6%

150.9%

140.2%

2.85%

3.06%

3.02%

107.7%

166.1%

154.5%

2.58%

2.78%

2.74%

Dec 11

111.8%

148.2%

141.6%

2.56%

2.92%

2.85%

118.9%

163.3%

155.0%

2.41%

2.65%

2.60%

Sep 11

121.9%

153.9%

148.3%

2.26%

2.67%

2.59%

130.7%

170.2%

163.0%

2.11%

2.41%

2.35%

Jun 11

128.6%

148.8%

145.4%

1.99%

2.49%

2.38%

143.3%

162.7%

159.4%

1.79%

2.27%

2.17%

Mar 11

146.0%

163.7%

160.6%

1.73%

2.21%

2.10%

159.5%

175.8%

173.0%

1.58%

2.05%

1.95%

Dec 10

133.0%

163.1%

157.8%

1.69%

2.18%

2.07%

152.5%

176.4%

172.5%

1.47%

2.01%

1.90%

Sep 10

130.1%170.4%168.3%…Domestic

116.5%149.2%127.9%… International

155.8%186.0%190.1%…Domestic

124.8%179.4%174.0%… International

127.8%

2.62%

3.72%

3.48%

150.3%

2.45%

3.10%

2.96%

Mar 12

1.83%1.77%…Domestic

1.24%1.29%… International

2.01%2.00%…Domestic

1.49%1.75%… International

160.7%

1.94%

187.5%

1.67%

Mar 10


184.9%Coverage of Overdue Loans > 90 days

166.3%Coverage of Overdue Loans >30 days


Jun 10


Quarterly and accumulated credit provision charge & net new entries

50.5

109bp

91bp

58bp

133bp

117bp

62.4

538.2

600.6

33bp

137bp

115bp

9.0

138.3

147.4

4Q11

16.4

113bp

129bp

68bp

128bp

116bp

53.5

399.7

453.2

59bp

128bp

114bp

15.4

132.4

147.8

3Q11

5.0

105bp

88bp

71bp

130bp

118bp

37.9

267.5

305.4

104bp

191bp

174bp

27.2

197.4

224.6

2Q11

30.0

123bp

123bp

40bp

68bp

63bp

10.7

70.1

80.9

40bp

68bp

63bp

10.7

70.1

80.9

1Q11

21.8

205bp

205bp

82bp

126bp

117bp

22.6

126.4

149.0

82bp

126bp

117bp

22.6

126.4

149.0

1Q12

14.1

66 bp

74 bp

73 bp

63 bp

65 bp

62.3

195.8

258.1

68 bp

62 bp

63 bp

19.5

64.1

83.6

3Q10

20.0

61 bp

23 bp

73 bp

63 bp

65 bp

42.8

131.7

174.5

78 bp

69 bp

71 bp

22.9

71.6

94.5

2Q10

59 bp103 bpNet new entries as % Performing Loans (accum.)

28.8

103 bp

74 bp

59 bp

62 bp

19.9

60.1

80.0

74 bp

59 bp

62 bp

19.9

60.1

80.0

1Q10

37 bpNet new entries as % Performing Loans (quarter)

258.7… Domestic

93.1… International

62 bp… Domestic


61 bp… Domestic


62.9… Domestic

30.8… International

34.8

67 bp

351.8

71 bp

93.7

4Q10

Quarterly Write Offs (Eur mn)

As % Loan Portfolio (bp)

P&L Credit Provisions Accumulated

As % Loan Portfolio (bp)

P&L Credit Provisions Quarter

(EUR million; % annualised)


Quarterly customer funds

22%

11,905

42,479

54,383

13,714

40,670

5,820

644

25,633

8,573

34,206

Dec 11

24%

13,103

41,572

54,675

13,260

41,415

4,804

652

26,840

9,119

35,959

Mar 12

24%

13,430

42,057

55,487

14,788

40,699

5,273

1,573

25,124

8,730

33,854

Sep 11

10.1%

-2.1%

0.5%

-3.3%

1.8%

-17.5%

1.2%

4.7%

6.4%

5.1%

QoQ

25%

14,281

41,732

56,013

17,715

38,298

5,747

2,006

22,401

8,145

30,545

Mar 11

25%

13,781

42,351

56,132

16,522

39,610

5,988

1,650

23,506

8,466

31,972

Jun 11

23%

12,841

43,147

55,988

17,094

38,894

6,326

1,749

22,143

8,676

30,819

Dec 10

28%

15,472

40,375

55,847

18,006

37,841

5,924

5,834

18,108

7,974

26,082

Jun 10

23%31%% total

18,865

41,728

60,594

18,985

41,609

6,460

8,626

19,469

7,053

26,522

Mar 10

12,965

43,969

56,934

17,763

39,171

5,596

3,653

21,994

7,929

29,923

Sep 10

12.0%… Sight

19.8%… Term

17.7%Deposits

-67.5%Certificates of Deposits

-8.2%

-0.4%

-2.4%

-25.1%

8.1%

-16.4%

YoY

Total

… International

… Domestic

Off-BS Funds

On-BS Customer Funds

Debt Securities placed with Clients

(EUR million)


Quarterly off-BS customer funds

3,128

10,586

13,714

561

1,684

2,245

3,478

222

1,933

2,155

93

1,110

1,203

2,252

2,381

4,633

Dec 11

3,127

10,133

13,260

552

1,746

2,298

3,292

229

1,580

1,809

92

1,052

1,144

2,254

2,463

4,717

Mar 12

3,895

12,627

16,522

804

2,349

3,153

4,315

239

2,448

2,687

80

1,249

1,329

2,772

2,267

5,038

Jun 11

-

-4.3%

-3.3%

-1.6%

3.7%

2.4%

-5.3%

3.2%

-18.3%

-16.1%

-1.1%

-5.2%

-4.9%

0.1%

3.4%

1.8%

QoQ

3,873

13,842

17,715

806

2,638

3,444

4,805

134

2,539

2,673

81

1,275

1,356

2,852

2,585

5,437

Mar 11

3,528

11,260

14,788

639

1,874

2,513

3,794

223

2,332

2,555

88

1,209

1,297

2,578

2,051

4,629

Sep 11

2,700

14,394

17,094

430

2,801

3,231

5,374

133

2,522

2,655

84

1,291

1,375

2,053

2,406

4,459

Dec 10

2,666

15,340

18,006

450

3,053

3,503

5,716

153

2,486

2,639

86

1,353

1,439

1,977

2,732

4,709

Jun 10

2,838

16,147

18,985

488

3,437

3,925

5,846

138

2,569

2,707

77

1,251

1,328

2,135

3,044

5,179

Mar 10

2,611

15,152

17,763

436

2,930

3,366

5,705

135

2,508

2,643

79

1,350

1,429

1,961

2,659

4,620

Sep 10

-17.5%… Domestic

13.6%… International

-19.3%

-26.8%

-25.1%

-31.5%

-33.8%

-33.3%

-31.5%

70.9%

-37.8%

-32.3%

-15.6%

-21.0%

-4.7%

-13.2%

YoY

… Domestic

Total Off-BS Funds

… International

… Domestic

… International

Pension Funds

Other (*)

Bancassurance (Domestic)

… International

… Domestic

Real Estate Funds

… International

… Domestic

Mutual Funds

(EUR million)

(*) Other includes off-BS structured products, discretionary management and venture capital


Available for Sale Portfolio – main equity holdings potential gains & losses

-169.4

5.7

-151.0

-24.1

4Q11

-224.8

6.2

-200.9

-30.1

3Q11

-161.7

5.2

-146.8

-20.1

2Q11

112.6

6.3

-28.7

0.0

1Q11

120.3

7.3

-7.3

-49.9

2010

-120.2

5.5

-117.2

-8.5

1Q12

586.3Total

0.25%

10.45%

0.96%

Stake (%)

2.5BMCE

499.0PT

84.8EDP

Acquis. Value(EUR million)

Potential Gains and Losses


Quarterly solvency ratios

10.8%

9.6%

9.4%

4%

233

782

6,184

6,066

6,966

3,938

2,198

58,434

64,570

Mar 12(IRB)

10.7%

9.4%

9.2%

4%

245

799

6,171

6,020

6,970

3,938

1,742

59,705

65,385

Dec 11(IRB)

10.6%

9.0%

8.1%

12%

729

1,018

6,020

5,380

7,038

3,973

2,218

60,524

66,715

Sep 11(IRB)

11. 5%

9.2%

8.2%

13%

775

1,517

6,127

5,445

7,577

3,973

2,976

59,482

66,431

Jun 11(IRB)

11.4%

8.8%

7.9%

15%

920

1,805

6,033

5,395

7,838

3,973

4,389

60,214

68,576

Mar 11(IRB)

11.3%

8.8%

7.9%

15%

920

1,758

6,040

5,416

7,798

3,973

4,219

60,610

68,802

Dec 10(IRB)

11.0%

8.3%

7.9%

11%

600

1,807

5,589

5,303

7,393

3,668

3,900

59,642

67,210

Sep 10(IRB)

10.6%

8.1%

7.9%

11%

600

1,699

5,405

5,276

7,104

3,668

4,303

59,092

67,063

Mar 10(IRB)

11.2%

8.4%

7.9%

11%

600

1,857

5,668

5,300

7,516

3,668

4,408

59,115

67,191

Jun 10(IRB)

As % Tier I

…Banking Book

…Trading Book

…Oper. Risk

Core Tier I

Tier I (%)

Total Capital

Tier I

Tier II and Other

Core Tier I (%)

Total (%)

Hybrid Capital

RWA (BoP)

(EUR million)

Notes: BIS II IRB corresponds to calculations based on IRB Foundation for credit risk and standardised approach for operational risk. Preliminary data as of Dec 2011.


Table of contents


repoable assets


issue of 11.0%


reserve



V. Wrap up





2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F

GDP 2.4 0.0 -2.9 1.4 -1.6 -3.3 0.1 1.5 2.3

Private Consumption 2.5 1.3 -2.3 2.1 -3.9 -5.9 -1.8 0.4 1.0

Public Consumption 0.5 0.3 4.7 0.9 -3.9 -3.5 -1.1 0.2 0.3

Investment 2.1 -0.1 -13.3 -3.6 -14.0 -10.6 -4.5 0.2 2.7

Exports 7.5 -0.1 -10.9 8.8 7.4 3.0 4.3 5.6 6.6

Imports 5.5 2.3 -10.0 5.4 -5.5 -5.7 -1.5 2.5 3.9

Inflation (%) 2.5 2.6 -0.8 1.4 3.7 3.3 1.5 1.6 1.6

Budget Balance (% GDP) -3.1 -3.6 -10.2 -9.8 -4.2* -4.5 -3.0 -2.3 -1.9

Public Debt (% GDP) 68.3 71.6 83.0 93.4 107.8 112.5 115.3 114.4 112.7

Unemployment (% Labour Force)** 8.0 7.6 9.5 10.8 12.7 15.4 15.1 14.6 13.0

Current & Capital Account Balance (% GDP) -8.9 -11.1 -10.1 -8.3 -5.1 -2.7 -0.4 0.8 1.1

Annual growth rates (%), except where indicated

* Including the effects of the integration of the banks’ pension funds and other one-off measures. Without these effects, the deficit would be 8.2% of GDP. ** Figures for 2011 and following years not comparable with the previous figures, due to a change of series. F: Forecast.Sources: Bank of Portugal, INE, ES Research, European Commission, IMF, OECD.

Portugal: Main Forecasts 2012-2015


Sources: INE, Bank of Spain, ES Research, European Commission.

Spain: Main Forecasts 2012-2013

Annual real growth rates (%), except where indicated. 2007 2008 2009 2010 2011 2012F 2013F

GDP 3.5 0.9 -3.7 -0.1 0.7 -1.9 -0.2

Private Consumption 3.5 -0.6 -4.3 1.3 -0.1 -2.0 -1.0

Public Consumption 5.6 5.9 3.2 -0.1 -2.2 -11.5 -3.0

Investment 4.5 -4.7 -16.0 -7.4 -5.1 -6.5 2.0

Exports 6.7 -1.0 -11.6 9.2 9.0 3.8 4.3

Imports 8.0 -5.2 -17.8 3.5 -0.1 -6.0 -1.0

Inflation (%) 2.8 4.1 -0.2 2.0 3.1 1.9 1.1

Budget Deficit (% GDP) 1.9 -4.5 -11.1 -9.2 -8.5 -5.3 -3.5

Public Debt (% GDP) 36.2 40.1 53.8 61.0 68.5 79.8 81.0

Current & Capital Account Balance (% GDP) -9.6 -9.2 -4.7 -4.0 -3.4 -1.4 -0.3

Unemployment (% of Labour Force) 8.3 11.3 18.0 20.0 21.6 24.3 25.0


Sources: IMF, Angolan Central Bank, Finance Ministry, ES Research.

Angola: Main Forecasts 2012-2013

2007 2008 2009 2010 2011 2012F 2013F

GDP (real growth rate, %) 22.6 13.8 2.4 3.4 3.4 10.0 6.7

GDP per capita (USD, current prices) 3 443 4 671 4 081 4 328 5 143 6 009 6 231

Inflation (%) 12.3 12.5 13.7 14.5 13.5 11.0 9.0

Current Account Balance (% GDP) 17.5 8.6 -10.0 8.9 12.0 7.3 5.7

Budget Balance (% GDP) 11.3 8.9 -4.9 7.7 7.9 7.7 6.4

Exchange Rate (USD/KZ), annual

average76.8 75.0 79.2 91.9 93.0 93.0 93.0

BNA Rediscount Rate (%), end of period 19.6 19.6 30.0 25.0 20.0 15.0 15.0


Sources: IBGE, Central Bank of Brazil, ES Research.

Brazil: Main Forecasts 2012-2013

2007 2008 2009 2010 2011 2012F 2013F

GDP (real growth rate, %) 6.1 5.2 -0.3 7.5 2.7 3.5 4.0

Inflation (%) 4.5 5.9 4.3 5.9 6.5 5.1 5.8

Primary Budget Balance (% GDP) 3.4 4.0 2.0 2.7 3.1 2.8 3.1

Public Debt (% GDP) 45.1 38.0 41.5 39.2 36.5 37.0 36.3

Unemployment (% of Labour Force) 9.3 7.9 8.1 6.7 6.0 6.0 6.3

Current Account Balance (% GDP) 0.1 -1.7 -1.5 -2.2 -2.1 -2.5 -2.8

Exchange Rate (USD/BRL), annual

average1.95 1.84 1.99 1.76 1.68 1.78 1.83

SELIC Interest Rate (%, End of Period) 11.25 13.75 8.75 10.75 11.00 8.00 8.00


Disclaimer

This news release may include certain statements relating to the Banco Espírito Santo Group that are neither reported financial results nor other historical information. These statements, which may include targets, forecasts, projections, descriptions of anticipated cost savings, statements regarding the possible development or possible assumed future results of operations and any statement preceded by, followed by or that includes the words “believes”, “expects”, “aims”, “intends”, “may” or similar expressions or negatives thereof are or may constitute forward-looking statements.

By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by forward-looking statements. These factors include, but are not limited to, changes in economic conditions in individual countries in which the BES Group conducts its business and internationally, fiscal or other policies adopted by various governments and regulatory authorities of Portugal and other jurisdictions, levels of competition from other banks and financial services companies as well as future exchange and interest rates.

Banco Espírito Santo does not undertake to release publicly any revision to the forward-looking information included in this news release to reflect events, circumstances or unanticipated events occurring after the date hereof.


Investor Relations

Investor Relations Contacts

Website: www.bes.pt/irPhone: + 351 21 359 7390E-mail: [email protected]: + 351 21 359 7001

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Documents

1Q12 Results Presentation1Q12 Results Presentation 15 May 2012 3 BES has been addressing the tough macro and market challenges of the past 2 years with a strict financial discipline,