1. Healthcare

www.ir.bpi.pt
BANCO BPI, S.A. – Publicly held company
Share capital: € 1 293 063 324.98
Registered in Oporto C.R.C. and corporate body no. 501 214 534
Head Office: Rua Tenente Valadim, no.284, Porto, Portugal
Earnings release
BANCO BPI CONSOLIDATED RESULTS
IN 2014
(Unaudited)
Oporto, 29 January 2015
CAPITAL
 Common Equity Tier 1 ratio CRD IV / CRR
o Fully implemented: 8.6%;
o Phasing in: 10.2%.
(Proforma ratios, considering the adhesion to the special scheme applicable to deferred tax assets and the change in risk
weightings for the indirect exposure to the Angolan State and to the National Bank of Angola (BNA) in Kwanza)
 BPI obtained the best result among iberian banks in the Comprehensive Assessment carried out
by the ECB – including an Asset Quality Review and Stress Tests.
RISK
 Cost of credit risk drops year-on-year from 0.96% to 0.70%;
 Loan impairments drop year-on-year from 273 M.€ to 193 M.€;
 Impairments coverage of credit at risk at 82%;
 Credit at risk ratio of 5.4%.
PERFORMANCE AND RESULTS
 Consolidated net loss of 161.6 M.€ in 2014, includes non-recurrent costs and losses in the
domestic activity of 264.3 M.€.; excluding those results, consolidated net profit would amount to
102.6 M.€;
 Net interest income increases 8.3%;
 Total customer resources increase by 3.7 Bi.€ yoy (+11.8%);
 Costs remain stable in the domestic activity (-0.2%);
 Stable commissions (+0,6%);
 Early redemption of 2.5 Bi.€ to ECB, thus reducing to 1.5 Bi.€ the resources borrowed.
INDEX
I. Capital
2
II. BPI Group’s consolidated results
5
III. Domestic activity results
9
IV. International activity results
19
V. Annexes
24
Banco BPI 2014 consolidated results
1/32
I. CAPITAL
Common Equity Tier 1 capital ratio
At 31 December 2014, the Common Equity Tier 1 (CET1) ratio calculated according to CRD IV / CRR rules
amounts to:

CET1 phasing in (rules for 2014): 12.2%;

CET1 fully implemented: 9.6%
The above figures are proforma ratios considering the adhesion to the special scheme applicable to deferred
tax assets approved in the Shareholders’ General Meeting of 17 October 2014.
It should be underlined that, in the 1st half of 2014, BPI reimbursed 920 M.€ of contingent convertible
subordinated bonds (CoCo) – that qualifyied as CET1 – thus concluding 3 years before the end of the legally
set deadline the redemption of CoCo subscribed by the Portuguese State in June 2012, in the amount of 1.5
th.M.€, within the framework of BPI’s recapitalisation plan.
Equivalence of regulation and supervision
In accordance with Banco BPI communication to the market of 16 December 2014, as a results that the list
published by the European Commission of third countries with supervisory and regulatory arrangements
equivalent to those of the European Union didn’t include the Republic of Angola, from the 1st January 2015
onwards, the indirect exposure in kwanzas of Banco BPI (i) to the Angolan State1 and (ii) to Banco Nacional
de Angola (BNA)2, stops being considered, for the purpose of the calculation of Banco BPI’s capital ratios, at
the risk weights foreseen in the Angolan regulation for that type of exposure, and starts being considered at
the risk weights foreseen in the CRR.
This means that, from the 1st January 2015 onwards, Banco BPI’s indirect exposure in kwanzas to the
Angolan State and BNA will no longer carry, in the calculation of capital ratios, a 0% or 20% weighting,
depending on the exposure, and will start being weighted at 100%.
Considering the adhesion to the special scheme applicable to DTA and the change in risk weightings for the
indirect exposure to the Angolan State and to the National Bank of Angola (BNA), the Common Equity Tier 1
(CET1) ratios proforma at 31 December 2014 would be:

CET1 phasing in (rules for 2014): 10.2% (i.e., 2.0 p.p. below the ratio with current weightings);

CET1 fully implemented: 8.6% (i.e., 1.0 p.p. below the ratio with current weightings).
1) Angolan public debt securities held by Banco de Fomento Angola (BFA) and loans granted to the Angolan State by BFA.
2) Minimum legal reserves, other deposits and repos at BFA.
Banco BPI 2014 consolidated results
2/32
Own funds and own funds requirements
Amounts in M.€
CRD IV / CRR Phasing in
(rules for 2014)
31 Dec.
13
31 Dec.
14
CRD IV / CRR Fully implemented
31 Dec.14
31 Dec.14 proforma after DTA
proforma
and change in the
after DTA risk weightings to
31 Dec.
13
31 Dec.
14
31 Dec.14
31 Dec.14 proforma after DTA
proforma
and change in the
after DTA risk weightings to
Angolan exposure
Common Equity Tier 1 capital
Risk weighted assets
Angolan exposure
3 375,0
2 428,3
2 491,2
2 532,8
2 373,9
1 703,0
1 949,5
2 122,3
21 616,0
20 612,0
20 385,3
24 824,0
21 125,7
20 231,4
20 208,4
24 687,8
15,6%
11,8%
12,2%
10,2%
11,2%
8,4%
9,6%
8,6%
Common Equity Tier 1 ratio
ECB comprehensive assessment
Banco BPI was subject to the EU-wide comprehensive assessment conducted by the European Central
Bank (ECB) in cooperation with the National Competent Authorities. 130 banks were subject to this exercise.
The comprehensive assessment was performed in conjunction with Banco of Portugal by the ECB prior to
assuming full responsibility for supervision under the Single Supervisory Mechanism in November 2014.
The comprehensive assessment comprised two main pillars:

an asset quality review (AQR)

a stress test
BPI presents the following main results in the comprehensive assessment:
CET1 Ratio at year end 2013
15.28%1
Aggregated adjustments due to the outcome of the AQR
-0.12%
AQR adjusted CET1 Ratio
15.16%
Aggregate adjustments due to the outcome of the baseline scenario of the joint EBA ECB Stress Test to
lowest capital level over the 3-year period
Adjusted CET1 Ratio after Baseline Scenario
Aggregate adjustments due to the outcome of the adverse scenario of the joint EBA ECB Stress Test to
lowest capital level over the 3-year period
Adjusted CET1 Ratio after Adverse Scenario
-0.24%
14.91%
-3.56%
11.60%
The thresholds for the CET1 ratio were of 8% in the AQR review, 8% in the baseline scenario and 5.5% in
the adverse scenario.
The result obtained by BPI in the AQR and in the baseline scenario of the stress test is the best among
Iberian banks and in the adverse scenario of the stress test is the second best.
1) Ratio at December 2013 calculated in accordance with EBA rules for the purposes of the assessment.
Banco BPI 2014 consolidated results
3/32
Leverage and Liquidity ratios
At 31 December 2014, the Leverage1 and Liquidity ratios calculated according to CRD IV / CRR rules are as
follows:

Leverage ratio phasing in: 5.9%

Leverage ratio Fully implemented: 5.2%

Liquidity Coverage Ratio (LCR) fully implemented: 124%

Net Stable Funding Ratio (NSFR) fully implemented: 99%
1) Proforma considering the adhesion to the special scheme applicable to deferred tax assets and the change in risk weightings for the exposure to the
Angolan State and to BNA.
Banco BPI 2014 consolidated results
4/32
II. BPI GROUP’S CONSOLIDATED RESULTS
Net losses of 161.6 million euro – BANCO BPI (Euronext Lisbon - Reuters BBPI.LS; Bloomberg BPI PL)
recorded in 2014 a consolidated net loss of 161.6 million euro (M.€). Earnings per share (Basic EPS) were
-0.114 € (0.048 € in 2013).
Consolidated income statement
Amounts in M.€
Chg. M.€
Dec.13 /
Dec.14
Dec. 13
Dec.14
475,1
514,5
39,3
24,8
34,4
9,6
Commissions and other similar income (net)
310,3
312,2
1,8
Gains and losses in financial operations
261,5
24,9
( 236,6)
( 23,7)
( 28,2)
( 4,5)
1 048,1
857,7
( 190,4)
Personnel costs, excluding non-recurring costs
366,8
370,1
3,3
Outside supplies and services
232,4
238,2
5,9
31,4
30,8
( 0,6)
630,5
639,1
8,5
20,0
32,5
12,5
Operating costs
650,5
671,5
21,0
Operating profit before provisions
397,5
186,2
( 211,4)
17,6
16,5
( 1,1)
Loan provisions and impairments
272,6
193,2
( 79,5)
Other impairments and provisions
( 12,0)
43,4
55,4
Profits before taxes
154,5
( 33,9)
( 188,5)
Corporate income tax
20,4
30,3
9,9
Equity-accounted results of subsidiaries
27,1
25,9
( 1,2)
Minority shareholders' share of profit
94,4
123,3
28,9
Net Income
66,8
( 161,6)
( 228,5)
Net interest income
Technical results of insurance contracts
Operating income and charges
Net operating revenue
Depreciation of fixed assets
Operating costs, excluding non-recurring
costs
Non-recurring costs
Recovery of loans written-off
The consolidated net loss of 161.6 M.€ in 2014 has been penalized by non-recurrent items in the
domestic activity with a negative impact of 264.3 M.€. Excluding these non-recurrent items,
consolidated net profit would have amounted to 102.6 M.€.
The contribution from the domestic activity for consolidated net income was negative by 287.7 M.€
and incorporates 264.3 M.€ related to the after tax impact of the following non recurrent costs and
losses:

Losses of 137.5 M.€ (105.9 M.€ after taxes) incurred mainly in the 1st quarter with the sale of
medium and long term public debt of Portugal and Italy;
Banco BPI 2014 consolidated results
5/32

Costs of 26.7 M.€ (20.5 M.€ after taxes) with interests on contingent convertible subordinated
bonds (CoCo), incurred in the first six months of the year, since the CoCo were fully repaid in
June;

Costs of 32.5 M.€ (23.1 M.€ after taxes) related to early-retirements, of which 6.3 M.€ (4.5 M.€
after taxes) were booked in the 4th quarter;

Annulation of 50.9 M.€ of deferred taxes (tax reporting) related to the losses of 2011 (of which
30.0 M.€ in the 4th quarter);

Annulation, in the 4th quarter, of 23.3 M.€ of deferred taxes due to the change in the corporate
income tax;

Several non-recurrent costs of 40.5 M.€ after taxes (of which 21.0 M.€ in the 4th quarter).
The international activity had a positive contribution to consolidated net income of 126.1 M.€
(+32.5% relative to 2013).
Return on shareholders’ equity (ROE)
The return on shareholders’ equity (ROE) was -7.2% in 2014, as a consequence of the losses
recorded in the domestic activity.
In the international activity, in its individual accounts, BFA’s posted a return on shareholders’ equity
(ROE) of 35.4% in 2014 and BCI’s ROE reached 23.6%.
Capital allocation, net income and ROE by business in 2014
Amounts in M.€
Domestic activity
Capital allocated adjusted (M.€)1
Commercial
Banking
Investment
Banking
1 791,2
44,1
As % of total
80,0%
2,0%
Net income (M.€)2)
( 286,3)
11,3
ROE
-16,0%
25,5%
International activity
Shareholdings
and other
Total
17,0 1 852,3
BFA
(individual
accounts)
BPI Group
(consolidated)
Contribution to
consolidated
(BFA, BCI and Other)
695,0
385,7
82,8%
-
17,2%
100,0%
( 12,7) ( 287,7)
245,7
126,1
( 161,6)
35,4%
32,7%
-7,2%
0,8%
-74,5%
-15,5%
2 237,9
1) The average capital considered in the calculation of ROE excludes the fair value reserve (net of deferred taxes) relating to the portfolio of
available-for-sale financial assets . The allocated capital to each individual area of domestic activity, excluding the fair value reserve, is
adjusted to reflect a capital employment equal to the average capital employed in the domestic activity. Accounting capital is used in the
international activity.
2) The contribution for consolidated profit of the domestic activity business areas has been adjusted by the capital reallocation.
Loans
At 31 December 2014, the net consolidated Customer loans portfolio amounted to 25.3 Bi.€, which
corresponds to a year-on-year contraction of 2.7%.
Resources
Total Customer resources increased by 3.7 Bi.€ year-on-year (+11.8%), to 35.4 Bi.€1. When compared
to the previous quarter, total customer resources grew by 3.8%.
1
Despite the return to the IGCP in June of a 774 M.€ deposit that the IGCP (Portuguese Treasury and Debt Management Agency) held on the
bank since late 2011 within the agreement for the partial transfer of pension liabilities to Social Security.
Banco BPI 2014 consolidated results
6/32
Recourse to the European Central Bank of 1.5 Bi.€
As a consequence of early redemptions of 1.0 Bi.€ in June and 1.5 Bi.€ in September, the amount of
funding raised by BPI from the Eurosystem (ECB) decreased to 1.5 Bi.€. In December 2014, Banco
BPI took 410 M.€ of resources maturing in 2018 in the TLTRO operation and repaid the same amount
of a previous LTRO line due in 2015, thus keeping ECB financing at 1.5 Bi.€.
Transformation ratio of deposits into loans
At 31 December 2014, in the consolidated accounts, the transformation ratio of deposits into loans
was 84%2. In the domestic activity the transformation ratio of deposits into loans stood at 106%.
Income and costs
Consolidated net operating revenue decreased by 18.2% (-190.4 M.€) relative to 2013, which is
mainly explained by the fall in profits from financial operations by 236.6 M.€, from 261.5 M.€ in 2013 to
24.9 M.€ in 2014. Profits from financial operations include, in 2014, losses of 137.5 M.€ (before taxes)
incurred mainly in the 1st quarter 2014 with the sale of medium and long term public debt of Portugal
and Italy.
Net interest income increased by 8.3% (+39.3 M.€), the technical results from insurance contracts
increased by 39% (+9.6 M.€) and commissions changed by 0.6% (+1.8 M.€), yoy.
Consolidated operating costs, excluding non-recurring items, increased by 1.4% (+8.5 M.€), whereas
in the domestic activity registered a slight decrease of 0.2% (-1.2 M.€).
BPI recognized in the income statement for 2014 a cost of 32.5 M.€ (before taxes) related to earlyretirements carried out. Including costs with early-retirements (non-recurring items), operating costs
register an increase of +3.2% yoy in consolidated terms and +2.2% in the domestic activity.
The consolidated efficiency ratio – operating costs as a percentage of net operating revenue -,
considering the income and costs accounted and excluding non-recurring impacts in costs and
income, was 64.2% in 2014.
Quality of the loan portfolio
At 31 December 2014, the ratio of Customer loans in arrears for more than 90 days was situated at
3.8% in the consolidated accounts. The credit at risk 3 ratio stood at 5.4% in the consolidated
accounts.
The accumulated impairment allowances in the balance sheet covered at 107% the loans in arrears
for more than 90 days and at 82% the credit at risk.
2) Calculated in accordance with Bank of Portugal Instruction 23 / 2011. Includes deposits of BPI Vida e Pensões.
3) Calculated in accordance with Bank of Portugal Instruction 23 / 2011. For purposes of calculating the non-performing ratio according, the
perimeter of the Group subject to the Bank of Portugal supervision is taken into account which results, in the case of BPI, in the recognition of
BPI Vida e Pensões using the equity method (whereas in accounting reporting, in accordance with IAS / IFRS, that subsidiary is consolidated
in full).
Banco BPI 2014 consolidated results
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Loan portfolio quality – consolidated accounts
Amounts in M.€
Dec. 13
M.€
Loans in arrears (+90 days)
Credit at risk (Instruction 23/2011 BoP)
Loans impairments (in the balance sheet)
Write offs (in the period)
Dec.14
% of loan
% of loan
1)
M.€
976,3
3,6%
1 008,3
3,8%
1 277,0
5,1%
1 304,0
5,4%
978,7
3,6%
1 075,2
4,1%
portfolio
93,4
101,8
26 897,1
26 305,6
portfolio
1)
Note:
Gross loan portfolio
1) As % of the gross loan portfolio
Cost of credit risk
Loan impairment charges decreased from 272.6 M.€ in 2013 to 193.2 M.€ in 2014 (-79.5 M.€). The
ratio of loan impairments as percentage of the loan portfolio decreased from 1.03% para 0.76%.
On the other hand, arrear loans and interest previously written off of 16.5 M.€ were recovered (0.06%
of the loan portfolio), with the result that impairments after deducting the abovementioned recoveries
amounted to 176.7 M.€ in 2014 (255.0 M.€ in 2013), which represents 0.70% of the loan portfolio
(0.96% in 2013).
Loan portfolio quality
Amounts in M.€
Dec.13
M.€
Loan impairments
Recovery of loans and interest in arrears written-off
Loan impairments, after deducting the recovery of loans and
interest in arrears written-off
Dec.14
% of loan
% of loan
1)
M.€
272,6
1,03%
193,2
0,76%
17,6
0,07%
16,5
0,06%
255,0
0,96%
176,7
0,70%
portfolio
1)
portfolio
1) As percentage of the average balance of the performing loans portfolio.
Banco BPI 2014 consolidated results
8/32
III. DOMESTIC ACTIVITY RESULTS
Income statement
Amounts in M.€
Chg. M.€
Dec.13 /
Dec.14
Dec. 13
Dec.14
284,4
277,7
( 6,7)
24,8
34,4
9,6
Commissions and other similar income (net)
256,5
246,3
( 10,2)
Gains and losses in financial operations
171,6
( 92,7)
( 264,3)
( 21,6)
( 16,9)
4,6
Net operating revenue
715,7
448,8
( 266,9)
Personnel costs, excluding non-recurring costs
302,5
302,1
( 0,4)
Outside supplies and services
177,9
178,5
0,6
18,1
16,7
( 1,4)
498,5
497,2
( 1,2)
20,0
32,5
12,5
Operating costs
518,5
529,7
11,2
Operating profit before provisions
197,2
( 80,9)
( 278,1)
15,3
14,0
( 1,3)
Loan provisions and impairments
264,3
172,5
( 91,8)
Other impairments and provisions
( 14,2)
36,0
50,2
Profits before taxes
( 37,5)
( 275,4)
( 237,9)
Corporate income tax
5,0
26,0
21,0
16,3
14,4
( 1,9)
2,1
0,7
( 1,4)
( 28,3)
( 287,7)
( 259,4)
Net interest income
Technical results of insurance contracts
Operating income and charges
Depreciation of fixed assets
Operating costs, excluding non-recurring
costs
Non-recurring costs
Recovery of loans written-off
Equity-accounted results of subsidiaries
Minority shareholders' share of profit
Net Income
Net income
The net income from domestic operations in 2014 was negative by 287.7 M.€ (negative by 28.3 M.€ in
2013), and incorporates 264.3 M.€ related to the after tax impact of the following non-recurrent costs
and losses accounted in 2014:

Losses of 137.5 M.€ (105.9 M.€ after taxes) incurred mainly in the 1st quarter with the sale of
medium and long term public debt of Portugal and Italy;

Costs of 26.7 M.€ (20.5 M.€ after taxes) with interests on contingent convertible subordinated
bonds (CoCo), incurred in the first six months of the year, since the CoCo were fully repaid in
June;

Costs of 32.5 M.€ (23.1 M.€ after taxes) related to early-retirements, of which 6.3 M.€ (4.5 M.€
after taxes) were booked in the 4th quarter;

Annulation of 50.9 M.€ of deferred taxes (tax reporting) related to the losses of 2011 (of which
30.0 M.€ in the 4th quarter);
Banco BPI 2014 consolidated results
9/32

Annulation, in the 4th quarter, of 23.3 M.€ of deferred taxes due to the change in the corporate
income tax;

Several non-recurrent costs of 40.5 M.€ after taxes (of which 21.0 M.€ in the 4th quarter).
Resources and loans
Resources
Total Customer resources in the domestic activity (on-balance sheet and off-balance sheet) attained
28.0 Bi.€ at the end of December, increasing by 7.6% year-on-year (+2.0 Bi.€). When compared to
June 2014, total customer resources register in December 2014 an increase of 7.8% (nonannualized), i.e. of 2.0 Bi.€.
Customers resources
Amounts in M.€
Dec.13
Dec.14
Chg.%
Sight deposits
5 029,9
6 392,2
27,1%
Term deposits
13 877,0
12 729,7
(8,3%)
Customers’ deposits
18 906,9
19 121,9
1,1%
912,0
692,9
(24,0%)
19 818,9
19 814,8
(0,0%)
3 205,8
5 305,1
65,5%
On-balance sheet resources
23 024,6
25 119,9
9,1%
1)
3 238,7
3 216,2
(0,7%)
26 024,7
28 004,3
7,6%
On-balance sheet resources
Retail bonds
Subtotal
Capitalisation insurance and PPR (BPI Vida) and other
Off-balance sheet resources
2)
Total Customer resources
1) Unit trust funds, PPR and PPA.
2) Corrected for double counting.
Customer deposits amounted to 19.1 Bi.€ at the end of December 20144 and, on a comparable basis,
grew by 5.5% yoy (+989 M.€).
Capitalisation insurance registered an increase of 65.5% yoy (+2.1 Bi.€), while off-balance sheet
resources (unit trust funds, Retirements savings – PPR - and equity savings – PPA - plans) decreased
by 0.7% yoy.
Loans
The Customer loans portfolio in domestic operations contracted by 5.9% (-1.5 Bi.€), in year-on-year
terms.
In year-on-year terms:

loans to large and medium-sized companies declined by 2.0% (-0.1 Bi.€), when one takes into
account both the Corporate Banking loan book and the BPI Vida e Pensões securitised loan
portfolio, which corresponds essentially to bonds and commercial paper issued by large
Portuguese companies.
4) The trend in deposits was influenced by the withdrawal in June of a deposit of 774 M.€ that the IGCP (Portuguese Treasury and Debt
Management Agency) kept on the bank since late 2011 within the agreement for the partial transfer of pension liabilities to Social Security.
Banco BPI 2014 consolidated results
10/32

loans domiciled at the Madrid branch fell by 16% (-0.25 Bi.€).

loans to the public sector decreased by 28% (-0.55 Bi.€).

The loans to individuals and small businesses portfolio presents a year-on-year decline of 2.9%
(-0.4 Bi.€), with decreases of 3.2% (-0.4 Bi.€) in mortgage loans whereas loans to small
businesses increased 2.8% yoy (+0.04 Bi.€). In relation to September 2014, loans to small
businesses portfolio grew 6.7% non annualised (+0.1 Bi.€).
Loans to Customers
Amounts in M.€
Dec.13
Dec.14
Chg.%
Corporate banking
4 049,9
3 654,2
(9,8%)
Large companies
1 702,8
1 419,9
(16,6%)
Medium-sized companies
2 347,0
2 234,3
(4,8%)
Project Finance - Portugal
1 158,4
1 154,7
(0,3%)
Madrid branch
1 555,1
1 306,1
(16,0%)
Project Finance
739,5
634,2
(14,2%)
Corporates
815,6
671,9
(17,6%)
1 979,1
1 424,7
(28,0%)
Central Administration
104,6
215,4
105,9%
Regional and local administrations
771,4
814,0
5,5%
State Corporate Sector - in the budget perimeter
192,6
64,1
(66,7%)
State Corporate Sector - outside the budget perimeter
863,7
295,4
(65,8%)
46,9
35,8
(23,6%)
13 728,0
13 330,0
(2,9%)
11 386,3
11 024,1
(3,2%)
10 418,5
9 795,2
(6,0%)
967,8
1 228,8
27,0%
Consumer credit / other purposes
601,1
553,9
(7,9%)
Credit Cards
165,0
166,9
1,2%
Car financing
164,3
134,8
(17,9%)
1 411,3
1 450,2
2,8%
1 725,1
2 005,7
16,3%
82,8
21,1
(74,5%)
Other
615,0
539,4
(12,3%)
Total
24 893,5
23 436,0
(5,9%)
Public Sector
Other Institutional
Individuals and Small Businesses Banking
Mortgage loans to individuals
Loans contracted before 2011
Loans contracted in 2011 and thereafter
Small businesses
BPI Vida
Loans in arrears net of impairments
Financial assets available for sale
In the 1st quarter of 2014, Banco BPI sold 50% of the position held in medium and long term public
debt of Portugal and Italy, in the nominal amount of 850 million euros and 487.5 million euros,
respectively. By the end of 2013, the Bank had already sold its entire position in Irish public debt, in
the amount of 335 million euros.
Banco BPI 2014 consolidated results
11/32
In the 3rd quarter of 2014, Banco BPI sold Portuguese Treasury Bonds amounting to 110 M.€ (nominal
value) and reduced the portfolio of Treasury Bills by 1.1 Bi.€.
By the end of December 2014, the portfolio of financial assets available for sale amounted to 4.9 Bi.€,
at market prices. This portfolio was comprised by 2.5 Bi.€ of Portuguese Treasury Bills, 865 M.€ of
Portuguese Treasury Bonds, 566 M.€ of Italian public debt, 631 M.€ of corporate bonds, 120 M.€ of
equities and 198 M.€ of participating units.
By the end of December 2014, the fair value reserve (before deferred taxes) relative to the financial
assets available for sale was negative by 35 M.€.
Portfolio of assets available for sale
Amounts in M.€
31 Dec. 2013
M.€
Acquisition
Book value
value
Public debt
31 Dec. 2014
Gains / (losses)
1)
in
in derivatives
securities
Acquisition
value
Total
Gains / (losses)
Book value
1)
in securities in derivatives
Total
6 241
6 221
- 69
- 341
- 410
3 770
3 918
146
- 186
- 40
5 238
5 163
- 122
- 210
- 332
3 265
3 352
83
- 108
- 26
TBonds
1 809
1 681
- 130
- 210
- 340
787
865
81
- 108
- 27
TBills
3 429
3 483
8
8
2 478
2 487
1
1 004
1 058
53
- 131
- 78
505
566
63
- 77
- 14
Corporate Bonds
747
794
23
- 65
- 42
595
631
13
- 35
- 22
Equities
131
102
17
17
136
120
30
30
Other
310
291
-2
-2
239
198
-4
-4
Total
7 429
7 408
- 31
- 437
4 741
4 867
185
Portugal
Of which
Italy
- 406
1
- 220
1) Fair value reserve before deferred taxes. Includes the impact of interest rate hedging.
Liquidity
In 2014, BPI amortised in advance 2.5 Bi.€ of resources raised from the European Central Bank
(ECB) (1.0 Bi.€ in June and 1.5 Bi.€ in September), thus reducing total funding obtained to 1.5 Bi.€.
In December 2014, Banco BPI took 410 M.€ of resources maturing in 2018 in the TLTRO operation
carried out by the ECB and repaid the same amount of a previous LTRO line due in 2015, thus
keeping ECB financing at 1.5 Bi.€.
On the same date, BPI still had 6.4 Bi.€ of additional assets (net of haircuts) capable of being
transformed into liquidity via operations with the ECB.
It must also be noted that the net refinancing needs for medium and long-term debt from January 2015
up till the end of 2018 amount to 255 M.€, and are explained by:
 Repayment of own debt amounting to 0.9 Bi.€, which essentially corresponds to EIB funding (0.8
Bi.€);
 Redemption of bonds held (excluding the Treasury Bills portfolio) of 0.7 Bi.€.
Banco BPI 2014 consolidated results
12/32
- 35
It is also worth mentioning that in 2019 1.3 Bi.€ of the MLT Eurozone sovereign debt held by BPI in
portfolio will be redeemed.
Net operating revenue
Net operating revenue generated by domestic operations decreased by 266.9 M.€, from 715.7 M.€ in
2013 to 448.8 M.€ in 2014. This reduction is mainly explained by the fall in profits from financial
operations from 171.6 M.€ in 2013 to -92.7 M.€ in 2014 (change of -264.3 M.€), as in 2013 this caption
includes capital gains of 129 M.€ with the sale of Treasury Bonds acquired in 2012, while in 2014 it
includes losses of 137.5 M.€ generated mainly in the 1st quarter of 2014 with the sale of 50% of the
position in Portuguese and Italian medium and long term public debt.
Net interest income decreased by 2.4% (-6.7 M.€) yoy. The fall in net interest income reflects:

the negative volume effect from the reduction of the loan portfolio, intensified, though with less
extent, by the decrease in spread on loans to corporates;

high cost of term deposits. It is worth mentioning that the margin on term deposits has been
improving gradually, from 1.75% above Euribor in the 4th quarter of 2013 to 1.39% in the 4th
quarter of 2014. This trend is expected to continue to reflect the lower remuneration in the renewal
of deposits or in new deposits raised. Note that the average spread on new deposits contracted in
December stood at 0.50 percentage points;

the reduction in interest income from the portfolio of T-Bills and the portfolio of T-Bonds by 55 M.€
which was offset by the reduction of 58 M.€ of interest cost with CoCo – fully repaid in June – and
that amounted, in the first six months of 2014, to 26.7 M.€;

net interest income is strongly affected by Euribor interest rates at historical minimums, as it is
directly reflected in the contraction in the average margin on sight deposits (average Euribor 3M in
2014 stood at 0.21%).
Commissions (net) decreased by 4.0% (-10.2 M.€) explained by the reduction in Commercial Banking
commissions by 9.4 M.€ (-4.7%) and in Asset Management commissions by 1.3 M.€ (-3.1%) whereas
Investment Banking commissions increased by 0.5 M.€ (+2.9%).
Net commissions and fees
Commercial banking
1)
Asset management
Investment banking
1)
Total
Amounts in M.€
31 Dec. 13
31 Dec. 14
Chg. M.€
Chg.%
197,8
188,5
- 9,4
(4,7%)
42,3
41,0
- 1,3
(3,1%)
16,3
16,8
+0,5
2,9%
256,5
246,3
- 10,2
(4,0%)
1) Excluding commissions from unit trust, pension funds and Private Banking, which are presented, in aggregate terms, in
the caption "Asset management".
Banco BPI 2014 consolidated results
13/32
Equity-accounted results of subsidiaries
The equity-accounted results of subsidiaries in domestic operations amounted to 14.4 M.€, which
corresponds to a year-on-year decrease of -1.9 M.€. The contribution of the subsidiaries from the
insurance sector amounted to 12.5 M.€ (contribution of 7.0 M.€ from Allianz Portugal and 5.5 M.€ from
Cosec).
Equity-accounted earnings
Amounts in M.€
31 Dec. 13
31 Dec. 14
Chg. M.€
Insurance companies
16,3
12,5
- 3,8
Allianz Portugal
10,5
7,0
- 3,5
5,8
5,5
- 0,3
( 1,8)
( 0,3)
+1,5
Unicre
1,4
2,0
+0,5
Other
0,4
0,2
- 0,2
Total
16,3
14,4
- 1,9
Cosec
Finangeste
Operating costs
Recurring operating costs stood stable in the domestic activity.
Operating costs
Amounts in M.€
31 Dec. 13
31 Dec. 14
Chg. M.€
Chg.%
Personnel costs, excluding non-recurring costs
302,5
302,1
- 0,4
(0,1%)
Outside supplies and services
177,9
178,5
+0,6
0,3%
18,1
16,7
- 1,4
(7,8%)
498,5
497,2
- 1,2
(0,2%)
20,0
32,5
+12,5
-
518,5
529,7
+11,2
2,2%
86,5%
84,8%
Depreciation of fixed assets
Operating costs, excluding non-recurring costs
Non-recurring costs1)
Operating costs
Operating costs as a % of net operating revenue 2)
1) Costs with early-retirements and includes in 2013 a gain of 3.3 M.€ resulting from changes in the calculation of the death subsidy following the
publication of Decree-Law 13/2013 of 25 January, which gave rise to a decrease in pension liabilities.
2) Excluding non-recurring impacts in costs and revenues.
Recurring personnel costs decreased 0.1% (-0.4 M.€), third-party supplies and services increased
0.3% (+0.6 M.€) and depreciation and amortization were down by 7.8% (-1.4 M.€) yoy. BPI closed 46
branches in 2014 which corresponded to a 7.3% reduction of the retail network in Portugal, and
reduced the workforce by 312 employees (-5%).
BPI recognized in the income statement for 2014, a cost of 32.5 M.€ (before taxes) related to earlyretirements carried out.
Operating costs as reported, which include costs with early-retirements (23.3 M.€ in 2013 and 32.5
M.€ in 2014), increased by 2.2% (+11.2 M.€).
Banco BPI 2014 consolidated results
14/32
The efficiency ratio in domestic operations – operating costs as a percentage of net operating revenue
–, excluding non-recurring impacts in income and costs, was situated at 84.8% in 2014.
Cost of credit risk
Loan impairments decreased by 91.8 M.€, from 264.3 M.€ in 2013 to 172.5 M.€ in 2014. The indicator
loan impairment allowances as a percentage of the loan portfolio’s average balance was situated at
0.72% in 2014 (1.04% in 2013).
On the other hand, arrear loans and interest of 14.0 M.€ previously written off were recovered in 2014
(0.06% of the loan portfolio), with the result that impairments after deducting the abovementioned
recoveries amounted to 158.5 M.€ (249.0 M.€ in 2013), which represents 0.66% of the loan portfolio
(0.98% in 2013).
Credit risk cost
Amounts in M.€
Dec.13
M.€
Loan impairments
Recovery of loans and interest in arrears written-off
Loan impairments, after deducting the recovery of loans and
interest in arrears written-off
Dec.14
% of loan
% of loan
1)
M.€
264,3
1,04%
172,5
0,72%
15,3
0,06%
14,0
0,06%
249,0
0,98%
158,5
0,66%
portfolio
1)
portfolio
1) As percentage of the average balance of the performing loans portfolio.
Quality of the loan portfolio
At 31 December 2014, the ratio of Customer loans in arrears for more than 90 days stood at 3.9% in
the domestic operations’ accounts.
Cover for loans in arrears for more than 90 days by accumulated impairment allowances in the
balance sheet (without considering cover from associated guarantees) was situated at 104% in
December 2014.
The credit at risk ratio, calculated in accordance with Bank of Portugal5) Instruction 23/2011 was 5.4%
on that date. The accumulated impairment allowances in the balance sheet represented 81% of the
credit at risk.
5)
For purposes of calculating the credit at risk ratio (non-performing ratio), the perimeter of the Group subject to the Bank of Portugal supervision
is taken into account which results, in the case of BPI, in the recognition of BPI Vida e Pensões using the equity method (whereas in
accounting reporting, in accordance with IAS / IFRS, that subsidiary is consolidated in full).
Banco BPI 2014 consolidated results
15/32
Loans in arrears for more than 90 days, falling due loans associated, credit at risk and loan
impairments
Dec. 13
M.€
Loans in arrears (+90 days)
Credit at risk (Instruction 23/2011 BoP)
Loans impairments (in the balance sheet)
Write offs (in the period)
Dec.14
% of loan
% of loan
1)
M.€
925,9
3,6%
947,1
3,9%
1 203,3
5,0%
1 219,1
5,4%
904,0
3,5%
988,5
4,1%
portfolio
84,8
91,5
25 755,9
24 394,8
portfolio
1)
Note:
Gross loan portfolio
1) As % of the gross loan portfolio
The following table details by major credit segments the credit at risk ratio, calculated in accordance
with Bank of Portugal Instruction 23/2011.
Credit at risk ratios (according to the Bank of Portugal Instruction 23/2011)
Dec. 13
M.€
Dec.14
% of loan
portfolio
1)
M.€
% of loan
portfolio
1)
Corporate banking
618,4
6,7%
634,5
7,9%
Individuals Banking
580,1
4,1%
581,6
4,2%
Mortgage loans
382,1
3,3%
396,5
3,5%
40,5
4,2%
39,3
4,4%
157,5
10,1%
145,8
9,2%
4,8
0,8%
2,9
0,5%
1 203,3
5,0%
1 219,1
5,4%
Other loans to individuals
Small businesses
Other
Domestic activity
1) As % of the gross loan portfolio
s
Banco BPI 2014 consolidated results
16/32
Impairments for foreclosure properties
At 31 December 2014, foreclosed properties amounted to 159.3 M.€, in terms of gross balance sheet
value. The accumulated amount of impairment allowances for foreclosed properties of 27.4 M.€,
covered 17.2% of their gross balance sheet value. The net value of these properties was therefore
131.9 M.€, which compared to a market value of these properties of 160.4 M.€.
Real estate loans recovery
Amounts in M.€
Dec.13
Dec.14
Gross value
66,6
72,7
Impairments
2,7
3,4
4,0%
4,7%
Mortgage
Coverage by impairments
Net value
63,9
69,3
Appraisal
78,5
85,9
Other
Gross value
99,9
86,5
Impairments
30,5
23,9
30,6%
27,7%
Coverage by impairments
Net value
69,4
62,6
Appraisal
81,9
74,5
Gross value
166,5
159,3
Impairments
33,2
27,4
19,9%
17,2%
Total
Coverage by impairments
Net value
133,3
131,9
Appraisal
160,4
160,4
Employee pension liabilities
At 31 December 2014 BPI’s pension liabilities amounted to 1 278 M.€ and are 97.7% covered by the
pension fund.
Financing of pension liabilities
Amounts in M.€
31 Dec.13
31 Dec.14
Pension obligations
1 082,4
1 278,4
Pension funds1)
1 131,9
1 248,7
49,6
( 29,7)
104,6%
97,7%
( 92,4)
( 184,0)
16,2%
7,7%
Financing surplus
Cover of pension obligations
Total actuarial deviations
2)
Pension fund return
1) Includes contributions to be transferred to the pension funds (2,9 M.€ in Dec.13 and 47,0 M.€ in Dec.14).
2) Recognized directly in Shareholders’ equity (OCI - Other Comprehensive Income), in accordance with IAS19.
Banco BPI 2014 consolidated results
17/32
Pension funds’ income
In 2014, the Bank’s pension funds posted a return of 7.7%.
It should be pointed out that, up till the end of December 2014, the actual return achieved by Banco
BPI’s pension fund since its creation in 1991 was 9.3% per year, and that in the last ten, five and three
years, the actual annual returns were 7.1%, 7.8% and 15.1%, respectively.
Change in actuarial assumptions
In June 2014, BPI reduced the discount rates by 0.5 p.p. (from 4.33% to 3.83% for current employees
and from 3.50% to 3.00% in the case of retirees6) and reduced by 0.25 p.p. the salary growth rate
(from 1.5% to 1.25%) and the pensions growth rate (from 1.0% to 0.75%).
At the end of 2014, BPI reduced the discount rates by 1.0 p.p. (from 3.83% to 2.83% for current
employees and from 3.00% to 2.00% in the case of retirees7) and reduced by 0.25 p.p. the salary
growth rate (from 1.25% to 1.00%) and the pensions growth rate (from 0.75% to 0.50%).
Together these alterations in essence explain a negative actuarial variance (increase in liabilities) of
134.7 M.€ in 2014 (of which, 122.5 M.€ in the 2nd half). The negative actuarial variances arising in the
year were partially offset by the positive variance of the fund’s actual income vis-à-vis the assumed
income (+43.1 M.€).
Actuarial assumptions
Dec.12
Jun.13
Dec.13
Jun.14
Dec.14
Discount rate - current employees
4,83%
4,83%
4,33%
3,83%
2,83%
Discount rate - retirees
4,00%
4,00%
3,50%
3,00%
2,00%
Salary growth rate
1,50%
1,50%
1,50%
1,25%
1,00%
Pensions growth rate
1,00%
1,00%
1,00%
0,75%
0,50%
Expected pension fund rate of return
5,50%
4,50%
4,00%
3,50%
2,50%
(M): TV 73/77 – 1 year (1)
(M): TV 73/77 – 2 years (2)
(W): TV 88/ 90 – 1 year (1)
(W): TV 88/ 90 – 3 years (2)
Mortality table
1) Beneficiaries were assumed to be one year younger than their actual age, that procedure translating into a higher life expectancy.
2) Men (M) and Women (W) were assumed to be two years and three years younger than their actual age, respectively, that
procedure translating into a higher life expectancy.
1) The amount of pension liabilities that result from the use of discount rates for current and retirees employees of 3.83% and 3.00%,
respectively, is similar to the one obtained in the case a unique global discount rate of 3.5% was used for the total population.
2) The amount of pension liabilities that result from the use of discount rates for current and retirees employees of 2.83% and 2.00%,
respectively, is similar to the one obtained in the case a unique global discount rate of 2.5% was used for the total population.
Banco BPI 2014 consolidated results
18/32
IV. INTERNATIONAL ACTIVITY RESULTS
Net profit
The international activity’s net profit stood at 126.1 M.€ in 2014 (+32.5% over the 95.2 M.€ obtained in
the previous year).
BFA‘s contribution to the Group’s consolidated profit, which corresponds to a 50.1% appropriation of
BFA’s net profit by BPI, has totalled 116.9 M.€8, 33% higher than the contribution in 2013 (88.0 M.€).
Minority interests of 122.6 M.€ were recognised in BFA’s net profit (92.3 M.€ in 2013).
The contribution to the consolidated net profit of the 30% participating interest in BCI (Mozambique),
which is equity-accounted, stood at 10.5 M.€ (9.9 M.€ in 2013).
Income statement
Amounts in M.€
Chg. M.€
Dec.13 /
Dec.14
Dec. 13
Dec.14
190,7
236,7
46,0
Commissions and other similar income (net)
53,9
65,9
12,0
Gains and losses in financial operations
89,9
117,6
27,7
Operating income and charges
( 2,1)
( 11,3)
( 9,2)
Net operating revenue
332,4
408,9
76,6
Personnel costs
64,3
68,0
3,7
Outside supplies and services
54,4
59,7
5,3
Depreciation of fixed assets
13,3
14,1
0,8
Operating costs
132,1
141,8
9,8
Operating profit before provisions
200,3
267,1
66,8
Recovery of loans written-off
2,3
2,5
0,2
Loan provisions and impairments
8,4
20,7
12,4
Other impairments and provisions
2,2
7,4
5,2
Profits before taxes
192,1
241,5
49,4
Corporate income tax
15,4
4,3
( 11,1)
Equity-accounted results of subsidiaries
10,8
11,5
0,7
Minority shareholders' share of profit
92,3
122,6
30,3
Net Income
95,2
126,1
30,9
Net interest income
Technical results of insurance contracts
BFA’s return on the average Shareholders’ equity (individual accounts) stood at 35.4% in 2014 and
BCI’s return on the average Shareholders’ equity reached 23.6%.
The return on the average Shareholders’ equity allocated to the international activity, after
consolidation adjustments, i.e. after the impact of taxes on dividends, stood at 32.7% in 2014.
8) Contribution of BFA to the Group’s consolidated profit, net of taxes on dividends.
Banco BPI 2014 consolidated results
19/32
Customer resources and loans
Total Customer resources in the international activity, measured in euro (consolidation currency), have
increased by 31.0%9, reaching 7 396.3 M.€ in December 2014.
Customers resources
Amounts in M.€
Dec.13
Dec.14
Chg.%
Sight deposits
3 028,6
3 805,9
25,7%
Term deposits
2 616,0
3 590,4
37,2%
Total
5 644,6
7 396,3
31,0%
BFA’s market share in deposits reached 15.7% in October 2014, granting it the third post in the
Angolan market ranking.
The loans to Customers portfolio, expressed in euro, increased 71%1), from 1 071.6 M.€ in December
2013, to 1 833.0 M.€ in December 2014. This growth occurred almost entirely in the 3rd quarter of
2014.
For its part, the significant increase of 758 M.€ of the loan portfolio observed in the third quarter of
2014 is largely explained by a loan made to the Angolan State.
Loans to Customers
Performing loans
Loans in arrears
Loan impairments
Interests and other
Total
Guarantees
Amounts in M.€
Dec.13
Dec.14
Chg.%
1 081,5
1 836,0
69,8%
52,0
63,8
22,7%
( 69,5)
( 77,9)
12,0%
7,7
11,1
45,0%
1 071,6
1 833,0
71,0%
227,6
487,9
114,3%
Securities portfolio
At 31 December 2014, BFA’s securities portfolio totalled 2 878 M.€ or 34% of the Bank’s assets. The
portfolio of short-term securities, comprising Treasury Bills, amounted to 615 M.€ at the end of
December (+108 M.€ relative to December 2013) and the Treasury Bonds portfolio amounted to
2 258 M.€ (+342 M.€ relative to December 2013).
Customers
The number of Customers has increased by 9.1%, from 1.2 million Customers in December 2013 to
1.3 million Customers in December 2014.
9) When expressed in American dollars, Customer resources increased 15.8% yoy and the loan portfolio increased 51.2% yoy. When analysing
the evolution of BFA’s commercial activity, one considers the financial figures translated to US dollars, since the largest share of Customer
resources and loans is denominated in U.S. dollars, hence changes expressed in that currency are more representative of the business
evolution in Angola.
Banco BPI 2014 consolidated results
20/32
Physical distribution network
The distribution network in Angola increased 6.3%, over December 2013. Ten new branches and an
investment centre were opened over the last 12 months. At the end of December 2014, the distribution
network comprised 161 branches, 9 investment centres and 16 corporate centres.
BFA has been implementing an expansion programme, involving the opening of branches, an
expressive increase in the headcount and staff skills, the launching of innovative products and
services onto the market, and a segmented approach to Customers aiming at meeting and harnessing
the huge potential for growth in the Angolan market.
Cards
BFA holds a prominent position in the debit and credit cards with a 18.8% market share in December
2014 in terms of valid debit cards. At the end of December 2014, BFA had 883 thousand valid debit
cards (Multicaixa cards) and 16 822 active credit cards (Gold and Classic cards).
Automatic and virtual channels
As regards the automatic and virtual channels, we emphasize the growing use of electronic banking
(505 thousand subscribers of BFA NET in December 2014, of which 494 thousand are individuals)
and an extensive terminal network with 371 ATM and 6 564 active point-of-sale (POS) terminals
connected to the EMIS network, corresponding to market shares of 14.5% (ranking 2nd) and 24.0%
(ranking 1st), respectively.
Number of employees
BFA’s workforce at the end of December 2014 stood at 2 526 employees, which represents an
increase in staff of 98 (+4.0%) relative to the staff complement in December 2013. At the end of
December 2014, BFA’s workforce represented approximately 30% of the Group’s total number of
Employees.
Revenues and costs
Net operating revenue in the international activity reached 408.9 M.€ in 2014, corresponding to an
increase of 23.0% yoy (+76.6 M.€).
This growth was mainly explained by the increase in net interest income (+46.0 M.€), commissions
(+12.0 M.€) and in profits from financial operations (+27.7 M.€).
Operating costs have increased by 7.4% (+9.8 M.€) over 2013.
Personnel costs decreased by 5.7% (+3.7 M.€), third-party supplies and services increased by 9.7%
(+5.3 M.€) and depreciation and amortization increased by 6.0% (+0.8 M.€).
The ratio “operating costs as percentage of net operating revenue” stood at 34.7% in 2014.
Banco BPI 2014 consolidated results
21/32
Cost of credit risk
In the international activity, loan provision charges were 20.7 M.€ in 2014, which corresponded to
1.48% of the average performing loan portfolio.
On the other hand, 2.5 M.€ of loans and interests in arrears, previously written-off, were recovered.
Loan provisions, deducted from recoveries of loans in arrears, have thus reached 18.2 M.€ in 2014,
corresponding to 1.30% of the average performing loan portfolio.
Loan impairments and recoveries
Amounts in M.€
Dec.13
M.€
Dec.14
% of loan
1)
M.€
portfolio
% of loan
1)
portfolio
Loan impairments
8,4
0,77%
20,7
1,48%
Recovery of loans and interest in arrears written-off
2,3
0,21%
2,5
0,18%
Loan impairments, after deducting the recovery of loans
and interest in arrears written-off
6,1
0,56%
18,2
1,30%
1) As percentage of the average balance of the performing loans portfolio.
At 31 December 2014, the ratio of Customer loans in arrears for more than 90 days stood at 3.2%.
The provisioning coverage of loans in arrears for more than 90 days stood, at the end of December
2014, at 142%.
Loans in arrears for more than 90 days and impairments
Dec. 13
M.€
Dec.14
% of loan
portfolio
1)
M.€
% of loan
portfolio
1)
Loans in arrears (+90 days)
50,4
4,4%
61,2
3,2%
Credit a risk (Instruction 23/2011 BoP)
73,8
6,5%
84,9
4,4%
Loans impairments (in the balance sheet)
74,7
6,5%
86,7
4,5%
Write offs (in the period)
8,6
10,4
1 141,1
1 910,8
Note:
Gross loan portfolio
1) As % of the gross loan portfolio
Banco BPI 2014 consolidated results
22/32
Equity-accounted results of subsidiaries
In the international activity, the equity-accounted earnings of subsidiaries amounted to 11.5 M.€ in
2014 (+0.7 M.€ over 2013)10, and refer to the appropriation of 30% of the net profit earned by BCI, a
commercial bank operating in Mozambique and in which BPI holds a 30% participating interest.
BCI recorded a 18.5%11 yoy increase in net total assets. Customer deposits have grown by 23.4%2
year-on-year, to 1 788 M.€ at the end of December 2014, while the Customer loan portfolio has
expanded by 30.7%2 year-on-year, to 1 428 M.€. BCI market shares in deposits and loans, at the end
of November 2014, reached 27.9% and 29.4%, respectively.
At the end of December 2014, BCI served 1 036 thousand clients (+33.5% relative to December
2013) through a network of 168 branches (+36 than one year before), representing 27.8% of the total
Mozambican banking system distribution network. The staff complement reached 2 457 Employees at
31 December 2014 (+15.8% than in December 2013).
Contact for Analysts and Investors
Investor Relations Officer
Ricardo Araújo
Tel. direct: (351) 22 607 31 19
Fax: direct: (351) 22 600 47 38
e-mail: [email protected]
10)
BCI’s total contribution to consolidated net profit was 9.9 M.€ in 2013 and 10.5 M.€ in 2014, given that, besides the equity-accounted
results, deferred tax relating to the distributable earnings of BCI is recorded in the caption “Corporate income tax" (0.9 M.€ in 2013 and 1.0M.€
in 2014).
11) Expressed in USD, net total assets grew 4.6%, deposits grew 8.9% and the loan portfolio grew 15.3%.
Banco BPI 2014 consolidated results
23/32
V. ANNEXES
Leading indicators
Amounts in M.€
Domestic activity
Net income, efficiency and profitability
Net income (as reported)
Net income (as reported) per share (EPS)
Weighted average number of shares 1)
Efficiency ratio excl. non-recurring impacts 2)
Return on average total assets (ROA)
Return on Shareholders' equity (ROE)
Balance sheet
Net total assets 3)
Loans to Customers
Deposits
Deposits and retail bonds
On-balance sheet Customer resources
Off-balance sheet Customer resources4)
Total Customer resources5)
Loans to deposits ratio (Instruction 23/2011 BoP)
Asset quality
Loans in arrears for more than 90 days
Ratio of loans in arrears 6)
Impairments cover of loans in arrears 6)
Credit at risk 7)
Impairments cover of credit at risk 7)
Cost of credit risk 8)
Pension liabilities
Employees pension liabilities
Employees pension funds assets9)
Cover of pension obligations 10)
Capital
Shareholders' equity and minority interests
Dec.13
Dec.14
- 28,3
-0,020
1.384
86,5%
-0,1%
-1,5%
- 287,7
-0,202
1.422
84,8%
-0,8%
-15,5%
37 345
24 893
18 907
19 819
23 025
3 239
26 025
118%
International activity
Chg.%
Dec.13
Dec.14
n.s.
n.s.
2,7%
95,2
0,069
1.384
39,7%
3,0%
28,4%
126,1
0,089
1.422
34,7%
3,5%
32,7%
34 851
23 436
19 122
19 815
25 120
3 216
28 004
106%
(6,7%)
(5,9%)
1,1%
(0,0%)
9,1%
(0,7%)
7,6%
6 456
1 072
5 645
5 645
5 645
926
3,6%
98%
5,0%
75%
0,98%
947
3,9%
104%
5,4%
81%
0,66%
2,3%
1 082
1 132
105%
1 278
1 249
98%
18,1%
10,3%
1 642
1 672
1,8%
Consolidated
Dec.13
Dec.14
32,5%
28,9%
2,7%
66,8
0,048
1.384
69,4%
0,4%
2,9%
- 161,6
-0,114
1.422
64,2%
-0,1%
-7,2%
n.s.
n.s.
2,7%
8 451
1 833
7 396
7 396
7 396
30,9%
71,0%
31,0%
31,0%
31,0%
5 645
19%
7 396
25%
31,0%
42 700
25 965
24 551
25 463
28 669
3 239
31 669
96%
42 633
25 269
26 518
27 211
32 516
3 216
35 401
84%
(0,2%)
(2,7%)
8,0%
6,9%
13,4%
(0,7%)
11,8%
50
4,4%
148%
6,5%
101%
0,56%
61
3,2%
142%
4,4%
102%
1,30%
21,5%
976
3,6%
100%
5,1%
77%
0,96%
1 008
3,8%
107%
5,4%
82%
0,70%
3,3%
1 082
1 132
105%
1 278
1 249
98%
18,1%
10,3%
2 306
2 548
10,5%
664
876
Chg.%
31,8%
Chg.%
CRD IV/CRR phasing in (rules for 2014)
Common Equity Tier I 11)
3 375
2 533
Risk weighted assets 11)
21 616
15,6%
7,6%
350%
114%
24 824
10,2%
5,9%
124%
100%
2 374
21 126
11,2%
5,5%
350%
113%
2 122
24 688
8,6%
5,2%
124%
99%
871
8 720
835
8 506
Common Equity Tier I ratio 11)
Leverage ratio 11)
LCR = Liquidity coverage ratio
NSFR = Net Stable Funding Ratio
CRD IV/CRR fully implemented
Common Equity Tier I 11)
Risk weighted assets 11)
Common Equity Tier I ratio 11)
Leverage ratio 11)
LCR = Liquidity coverage ratio
NSFR = Net Stable Funding Ratio
Distribution network and staff
Distribution network 12)
BPI Group staff 13)
696
6 274
649
5 962
(6,8%)
(5,0%)
175
2 446
186
2 544
6,3%
4,0%
(4,1%)
(2,5%)
1) Average outstanding number of shares, deducted of treasury stock.
2) Operating costs as % of net operating revenue.
3) The total assets for each of the geographical segments presented above has not been corrected for the balances resulting from operations between these segments.
4) Unit trust funds, PPR and PPA (excludes pension funds).
5) Corrected for double counting: placements of unit trust funds managed by BPI in the Group's deposits, structured products and unit trust funds.
6) Loans in arrears for more than 90 days.
7) Calculated in accordance with Bank of Portugal Instruction 23/2011.The credit at risk is the sum of: (1) the total amount outstanding on a loan in respect of which there are
instalments of principal or interest in arrears for 90 days or more; (2) the total amount outstanding on loans which have been restructured, after having been in arrears for a period
of 90 days or more, without adequate reinforcement of guarantees (these should be sufficient to cover the full amount of the outstanding principal and interest) or full payment of
interest and other charges in arrears; (3) the total value of loans with instalments of principal and accrued interest in arrears for less than 90 days but in respect of which there is
evidence to justify their classification as credit-at-risk, namely the debtor’s bankruptcy or winding up.
8) Loan impairments in the period (P&L account), net of arrear loans recovered, as percentage of the average performing loan portfolio.
9) Includes contributions to be transferred to the pension funds (2,9 M.€ in Dec.13 and 47,0 M.€ in Dec.14).
10) Cover of pension obligations by the pension funds assets.
11) Proforma ratios considering the adhesion to the special scheme applicable to deferred tax assets and the change in risk weights aplicable to Banco BPI’s indirect exposure to
the Angolan State and to BNA.
12) Includes traditional branches, housing shops, investment centres, corporate centres, Institutionals and one Project Finance centre. Domestic activity distribution network
includes branches in Paris (12 branches).
13) Excludes temporary workers.
Banco BPI 2014 consolidated results
24/32
Consolidated income statement
Amounts in M.€
2013
Net interest income (narrow sense)
2014
1Q
2Q
3Q
4Q
2013
1Q
2Q
3Q
4Q
2014
Chg.%
2013 / 2014
108,9
110,3
112,1
113,4
444,7
105,6
115,1
134,3
130,3
485,3
9,1%
Unit linked gross margin
0,7
0,7
0,8
0,8
3,0
0,9
1,1
1,3
1,7
5,0
67,1%
Income from securities (variable yield)
0,1
3,1
0,1
0,4
3,7
0,1
3,3
0,1
0,1
3,6
(1,2%)
Commissions related to deferred cost (net)
Net interest income
Technical results of insurance contracts
Commissions and other similar income (net)
6,5
6,3
5,5
5,5
23,8
5,4
5,1
4,9
5,2
20,5
(13,8%)
116,2
120,4
118,4
120,1
475,1
112,0
124,5
140,7
137,2
514,5
8,3%
5,7
5,6
6,0
7,5
24,8
6,9
8,0
9,0
10,5
34,4
38,9%
71,8
85,3
77,5
75,7
310,3
71,7
75,2
83,8
81,5
312,2
0,6%
Gains and losses in financial operations
155,6
32,7
40,5
32,7
261,5
( 91,7)
34,4
44,0
38,2
24,9
(90,5%)
Operating income and charges
( 4,7)
( 4,9)
( 6,3)
( 7,8)
(23,7)
( 4,1)
( 8,4)
( 6,1)
( 9,6)
( 28,2)
(19,2%)
Net operating revenue
344,6
239,1
236,3
228,2
1 048,1
94,8
233,8
271,4
257,7
857,7
(18,2%)
Personnel costs, excluding non-recurring costs
92,5
91,3
91,6
91,4
366,8
89,8
91,5
94,0
94,8
370,1
0,9%
Outside supplies and services
58,5
61,0
61,4
51,5
232,4
59,4
61,6
62,7
54,5
238,2
2,5%
8,1
7,8
7,8
7,7
31,4
7,6
7,4
7,8
8,0
30,8
(1,9%)
159,1
160,1
160,8
150,5
630,5
156,8
160,5
164,5
157,2
639,1
1,4%
( 3,3)
4,1
19,2
20,0
26,1
6,3
32,5
62,2%
Operating costs
155,8
164,2
160,8
169,8
650,5
156,8
160,5
190,7
163,6
671,5
3,2%
Operating profit before provisions
188,8
74,9
75,5
58,4
397,5
( 62,0)
73,3
80,8
94,2
186,2
(53,2%)
5,3
5,1
3,8
3,4
17,6
4,3
4,2
3,9
4,0
16,5
(6,4%)
Loan provisions and impairments
69,8
80,8
31,9
90,2
272,6
45,3
54,7
41,2
51,9
193,2
(29,1%)
Other impairments and provisions
46,5
( 36,0)
8,9
( 31,5)
(12,0)
3,4
2,9
9,2
27,9
43,4
460,7%
Profits before taxes
77,8
35,1
38,5
3,1
154,5
( 106,4)
19,8
34,3
18,5
( 33,9)
(122,0%)
Corporate income tax
24,4
0,8
7,2
( 12,1)
20,4
( 22,7)
4,4
16,6
32,0
30,3
48,5%
5,7
4,5
7,4
9,5
27,1
5,3
6,1
8,1
6,4
25,9
(4,4%)
Minority shareholders' share of profit
18,5
20,4
24,9
30,6
94,4
26,4
23,3
33,5
40,1
123,3
30,6%
Net Income
40,5
18,4
13,8
( 5,8)
66,8
( 104,8)
( 1,8)
( 7,7)
( 47,3)
( 161,6)
(341,8%)
Depreciation of fixed assets
Operating costs, excluding non-recurring costs
Non-recurring costs
Recovery of loans written-off
Equity-accounted results of subsidiaries
Banco BPI 2014 consolidated results
25/32
Consolidated balance sheet
Amounts in M.€
31 Dec.13
31 Dec.14
Chg.%
1 372,2
1 894,2
38,0%
Assets
Cash and deposits at central banks
Amounts owed by credit institutions repayable on demand
Loans and advances to credit institutions
Loans and advances to Customers
466,9
380,5
(18,5%)
1 886,1
2 588,8
37,3%
25 965,1
25 269,0
(2,7%)
Financial assets held for dealing
1 295,8
3 017,7
132,9%
Financial assets available for sale
9 694,2
7 530,6
(22,3%)
Financial assets held to maturity
136,9
88,4
(35,4%)
Hedging derivatives
194,0
148,7
(23,4%)
Investments in associated companies and jointly controlled entities
222,0
212,7
(4,2%)
Investment properties
1)
154,8
Non-current assets held for sale
Other tangible assets
Intangible assets
11,6
197,3
204,2
3,5%
19,1
24,9
29,9%
Tax assets
539,7
422,3
(21,7%)
Other assets
710,4
684,8
(3,6%)
Total assets
42 699,7
42 633,2
(0,2%)
4 140,1
1 561,2
(62,3%)
255,2
326,8
28,0%
1 453,2
1 372,4
(5,6%)
25 495,0
28 134,6
10,4%
2 598,5
2 238,1
(13,9%)
Liabilities and shareholders' equity
Resources of central banks
Financial liabilities held for dealing
Credit institutions' resources
Customers' resources and other loans
Debts evidenced by certificates
Technical provisions
2 689,8
4 151,8
54,4%
Financial liabilities associated to transferred assets
1 387,3
1 047,7
(24,5%)
Hedging derivatives
548,5
327,2
(40,3%)
Provisions
123,8
110,2
(10,9%)
57,6
42,1
Tax liabilities
Contingently convertible subordinated bonds
(26,9%)
920,4
(100,0%)
Other subordinated loans
136,9
69,5
(49,2%)
Other liabilities
587,2
703,8
19,9%
1 190,0
1 293,1
8,7%
678,7
1 006,5
48,3%
3,4
5,3
54,3%
Share capital
Share premium account and reserves
Other equity instruments
Treasury stock
Net profit
Shareholders' equity attributable to the shareholders of BPI
Minority interests
Shareholders' equity
Total liabilities and shareholders' equity
( 17,1)
( 13,8)
19,1%
66,8
( 161,6)
(341,8%)
1 921,9
2 129,3
10,8%
384,4
418,3
8,8%
2 306,3
2 547,6
10,5%
42 699,7
42 633,2
(0,2%)
1) According to IFRS10, in June 2014 Banco BPI began to consolidate using the full consolidation method the unit trust funds BPI Obrigações
Mundiais and Imofomento.
Banco BPI 2014 consolidated results
26/32
Domestic activity income statement
Amounts in M.€
2013
2014
Chg.%
2013 / 2014
1Q
2Q
3Q
4Q
2013
1Q
2Q
3Q
4Q
2014
66,3
62,9
61,9
63,2
254,4
57,1
60,9
66,7
64,0
248,7
(2,2%)
Unit linked gross margin
0,7
0,7
0,8
0,8
3,0
0,9
1,1
1,3
1,7
5,0
67,1%
Income from securities (variable yield)
0,1
3,1
0,1
0,4
3,7
0,1
3,3
0,1
0,1
3,6
(1,2%)
Net interest income (narrow sense)
Commissions related to deferred cost (net)
Net interest income
Technical results of insurance contracts
Commissions and other similar income (net)
6,4
6,2
5,4
5,4
23,4
5,4
5,0
4,8
5,2
20,4
(12,7%)
73,4
72,9
68,2
69,9
284,4
63,5
70,3
73,0
71,0
277,7
(2,4%)
5,7
5,6
6,0
7,5
24,8
6,9
8,0
9,0
10,5
34,4
38,9%
58,9
71,1
63,9
62,5
256,5
58,4
62,7
61,9
63,2
246,3
(4,0%)
Gains and losses in financial operations
137,3
10,1
14,5
9,8
171,6
( 120,1)
7,2
13,4
6,7
( 92,7)
(154,0%)
Operating income and charges
( 4,7)
( 4,4)
( 5,9)
( 6,7)
(21,6)
( 3,4)
( 3,4)
( 3,5)
( 6,6)
( 16,9)
21,5%
Net operating revenue
270,5
155,4
146,7
143,0
715,7
5,3
144,9
153,8
144,8
448,8
(37,3%)
Personnel costs, excluding non-recurring costs
76,2
74,4
74,7
77,2
302,5
74,8
74,5
76,6
76,2
302,1
(0,1%)
Outside supplies and services
45,1
46,4
46,8
39,6
177,9
45,7
46,7
46,5
39,5
178,5
0,3%
4,8
4,6
4,4
4,3
18,1
4,2
4,0
4,1
4,3
16,7
(7,8%)
126,1
125,4
125,9
121,1
498,5
124,7
125,2
127,2
120,0
497,2
(0,2%)
Non-recurring costs
( 3,3)
4,1
19,2
20,0
26,1
6,3
32,5
62,2%
Operating costs
122,8
129,5
125,9
140,3
518,5
124,7
125,2
153,3
126,4
529,7
2,2%
Operating profit before provisions
147,8
25,9
20,8
2,7
197,2
( 119,5)
19,6
0,5
18,5
( 80,9)
(141,0%)
4,6
4,5
3,3
3,0
15,3
3,9
3,6
3,2
3,3
14,0
(8,8%)
Loan provisions and impairments
67,7
77,2
30,6
88,7
264,3
42,1
51,9
34,0
44,4
172,5
(34,7%)
Other impairments and provisions
45,8
( 36,7)
8,1
( 31,4)
(14,2)
2,6
2,2
8,5
22,7
36,0
353,5%
Profits before taxes
38,9
( 10,1)
( 14,6)
( 51,7)
(37,5)
( 160,3)
( 31,0)
( 38,8)
( 45,3)
( 275,4)
(633,5%)
Corporate income tax
19,9
( 6,2)
0,6
( 9,3)
5,0
( 29,4)
1,3
8,0
46,1
26,0
421,7%
Equity-accounted results of subsidiaries
2,6
3,3
5,4
4,9
16,3
3,6
4,1
5,6
1,0
14,4
(11,8%)
Minority shareholders' share of profit
0,4
0,3
0,5
1,0
2,1
1,8
( 1,2)
0,2
( 0,2)
0,7
(67,8%)
21,2
( 0,8)
( 10,3)
( 38,5)
(28,3)
( 129,2)
( 27,0)
( 41,3)
( 90,2)
( 287,7)
(915,2%)
Depreciation of fixed assets
Operating costs, excluding non-recurring costs
Recovery of loans written-off
Net Income
Banco BPI 2014 consolidated results
27/32
Domestic activity balance sheet
Amounts in M.€
31 Dec.13
31 Dec.14
Chg.%
Cash and deposits at central banks
314,8
439,9
39,7%
Amounts owed by credit institutions repayable on demand
457,8
364,5
(20,4%)
1 284,2
1 208,9
(5,9%)
Assets
Loans and advances to credit institutions
Loans and advances to Customers
24 893,5
23 436,0
(5,9%)
Financial assets held for dealing
1 155,4
2 803,6
142,6%
Financial assets available for sale
7 408,3
4 866,8
(34,3%)
Financial assets held to maturity
136,9
88,4
(35,4%)
Hedging derivatives
194,0
148,7
(23,4%)
Investments in associated companies and jointly controlled entities
177,0
158,2
(10,6%)
Investment properties1)
154,8
Non-current assets held for sale
11,6
Other tangible assets
69,3
62,4
(10,0%)
Intangible assets
16,9
22,1
30,8%
Tax assets
536,5
413,6
(22,9%)
Other assets
700,6
671,4
(4,2%)
Total assets
37 345,2
34 850,8
(6,7%)
4 140,1
1 561,2
(62,3%)
Liabilities and shareholders' equity
Resources of central banks
Financial liabilities held for dealing
Credit institutions' resources
Customers' resources and other loans
254,0
324,5
27,8%
2 535,4
2 007,2
(20,8%)
19 796,5
20 685,7
4,5%
(13,9%)
Debts evidenced by certificates
2 598,5
2 238,1
Technical provisions
2 689,8
4 151,8
54,4%
Financial liabilities associated to transferred assets
1 387,3
1 047,7
(24,5%)
Hedging derivatives
548,5
327,2
(40,3%)
Provisions
102,1
78,9
(22,7%)
39,1
24,9
Tax liabilities
Contingently convertible subordinated bonds
920,4
Other subordinated loans
136,9
Other liabilities
Shareholders' equity attributable to the shareholders of BPI
Minority interests
Shareholders' equity
Total liabilities and shareholders' equity
(36,3%)
(100,0%)
69,5
(49,2%)
554,7
662,3
19,4%
1 571,7
1 669,8
6,2%
(97,4%)
70,2
1,8
1 641,9
1 671,6
1,8%
37 345,2
34 850,8
(6,7%)
Note: The balance sheet relating to domestic operations presented above has not been corrected for the balances resulting from operations with
the “International Operations” geographical segment.
1) According to IFRS10, in June 2014 Banco BPI began to consolidate using the full consolidation method the unit trust funds BPI Obrigações
Mundiais and Imofomento.
Banco BPI 2014 consolidated results
28/32
International activity income statement
Amounts in M.€
2013
2014
Chg.%
2013 / 2014
1Q
2Q
3Q
4Q
2013
1Q
2Q
3Q
4Q
2014
42,6
47,4
50,1
50,2
190,3
48,5
54,2
67,6
66,3
236,6
24,4%
0,2
0,1
0,1
0,0
0,4
0,0
0,0
0,1
( 0,1)
0,1
(79,1%)
42,7
47,5
50,2
50,2
190,7
48,6
54,2
67,7
66,2
236,7
24,1%
Commissions and other similar income (net)
13,0
14,2
13,6
13,1
53,9
13,3
12,5
21,9
18,2
65,9
22,3%
Gains and losses in financial operations
18,3
22,6
26,1
22,9
89,9
28,4
27,2
30,6
31,5
117,6
30,8%
( 0,0)
( 0,5)
( 0,4)
( 1,1)
( 2,1)
( 0,7)
( 5,0)
( 2,6)
( 3,0)
( 11,3)
(437,3%)
Net interest income (narrow sense)
Unit linked gross margin
Income from securities (variable yield)
Commissions related to deferred cost (net)
Net interest income
Technical results of insurance contracts
Operating income and charges
Net operating revenue
74,0
83,7
89,5
85,1
332,4
89,5
88,9
117,6
112,9
408,9
23,0%
Personnel costs
16,3
16,9
16,9
14,2
64,3
15,0
17,0
17,5
18,6
68,0
5,7%
Outside supplies and services
13,4
14,6
14,6
11,8
54,4
13,7
14,8
16,2
15,0
59,7
9,7%
3,3
3,2
3,4
3,4
13,3
3,4
3,4
3,6
3,6
14,1
6,0%
Operating costs
33,0
34,8
34,9
29,4
132,1
32,1
35,3
37,3
37,2
141,8
7,4%
Operating profit before provisions
Depreciation of fixed assets
41,0
49,0
54,6
55,7
200,3
57,4
53,6
80,3
75,7
267,1
33,3%
Recovery of loans written-off
0,7
0,6
0,5
0,5
2,3
0,4
0,7
0,8
0,7
2,5
9,4%
Loan provisions and impairments
2,0
3,6
1,3
1,4
8,4
3,2
2,8
7,2
7,5
20,7
147,8%
Other impairments and provisions
0,8
0,8
0,7
( 0,1)
2,2
0,7
0,7
0,8
5,2
7,4
240,8%
Profits before taxes
38,9
45,2
53,1
54,8
192,1
53,9
50,8
73,1
63,7
241,5
25,7%
Corporate income tax
4,5
7,1
6,6
( 2,7)
15,4
6,6
3,2
8,6
( 14,1)
4,3
(72,0%)
Equity-accounted results of subsidiaries
3,1
1,2
1,9
4,6
10,8
1,6
2,0
2,5
5,4
11,5
6,7%
Minority shareholders' share of profit
18,1
20,2
24,5
29,5
92,3
24,5
24,5
33,3
40,3
122,6
32,9%
Net Income
19,3
19,2
24,0
32,6
95,2
24,4
25,2
33,6
42,9
126,1
32,5%
Banco BPI 2014 consolidated results
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International activity balance sheet
Amounts in M.€
31 Dec.13
31 Dec.14
Chg.%
1 057,5
1 454,3
37,5%
18,3
57,6
214,1%
Loans and advances to credit institutions
1 690,6
2 002,6
18,5%
Loans and advances to Customers
1 071,6
1 833,0
71,0%
140,4
214,1
52,6%
2 285,9
2 663,7
16,5%
45,0
54,5
21,3%
128,0
141,8
10,8%
Intangible assets
2,3
2,8
23,4%
Tax assets
3,2
8,7
172,3%
Other assets
12,9
18,3
41,9%
Total assets
6 455,6
8 451,5
30,9%
1,2
2,3
84,1%
15,7
29,4
87,3%
5 698,5
7 448,9
30,7%
Provisions
21,7
31,3
44,1%
Tax liabilities
18,4
17,1
(7,0%)
35,6
46,4
30,4%
Shareholders' equity attributable to the shareholders of BPI
350,2
459,5
31,2%
Minority interests
314,3
416,5
32,5%
Shareholders' equity
664,5
876,0
31,8%
6 455,6
8 451,5
30,9%
Assets
Cash and deposits at central banks
Amounts owed by credit institutions repayable on demand
Financial assets held for dealing
Financial assets available for sale
Financial assets held to maturity
Hedging derivatives
Investments in associated companies and jointly controlled entities
Investment properties
Non-current assets held for sale
Other tangible assets
Liabilities and shareholders' equity
Resources of central banks
Financial liabilities held for dealing
Credit institutions' resources
Customers' resources and other loans
Debts evidenced by certificates
Technical provisions
Financial liabilities associated to transferred assets
Hedging derivatives
Contingently convertible subordinated bonds
Other subordinated loans
Other liabilities
Total liabilities and shareholders' equity
Note:
The balance sheet relating to international operations presented above has not been corrected for the balances resulting from operations with the
“Domestic Operations” geographical segment.
Banco BPI 2014 consolidated results
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Profitability, efficiency, loan quality and solvency
Consolidated indicators according to the Bank of Portugal Notice 23/2011
31 Dec.13
31 Dec.14
Net operating revenue and results of equity accounted subsidiaries / ATA
2,5%
2,1%
Profit before taxation and minority interests / ATA
0,4%
0,0%
Profit before taxation and minority interests / average shareholders’ equity (including
minority interests)
8,2%
-0,3%
Personnel costs / net operating revenue and results of equity accounted subsidiaries 1
36,0%
41,9%
Operating costs / net operating revenue and results of equity accounted subsidiaries 1
60,5%
72,3%
Loans in arrears for more than 90 days + doubtful loans / loan portfolio (gross)
4,0%
4,3%
Loans in arrears for more than 90 days + doubtful loans, net of accumulated loan
impairments / loan portfolio (net)
0,3%
0,1%
5,1%
5,4%
1,4%
1,2%
6,1%
6,9%
Non-performing loans ratio
2
2
Non-performing loans ratio , net of accumulated loan
impairments / loan portfolio (net)
Restructured loans as % of total loans
3
Restructured loans not included in non-performing loans ("credit at risk") as % of total
loans3
4,4%
4,6%
16,2%
4)
11,8%
5)
Tier I (according to Bank of Portugal rules)
16,2%
4)
11,8%
5)
Core Tier I
16,5%
4)
11,8%
5)
Total capital ratio (according to Bank of Portugal rules)
Loans (net) to deposits ratio
96%
84%
1) Excluding early-retirement costs.
2) The credit at risk is the sum of: (1) the total amount outstanding on a loan in respect of which there are instalments of principal or interest in
arrears for 90 days or more; (2) the total amount outstanding on loans which have been restructured, after having been in arrears for a period of 90
days or more, without adequate reinforcement of guarantees (these should be sufficient to cover the full amount of the outstanding principal and
interest) or full payment of interest and other charges in arrears; (3) the total value of loans with instalments of principal and accrued interest in
arrears for less than 90 days but in respect of which there is evidence to justify their classification as credit-at-risk, namely the debtor’s bankruptcy or
winding up.
3) According to Bank of Portugal Instruction 32/2013.
4) According to former Bank of Portugal rules in force until 31 Dec.13.
5) According to CRD IV/CRR phasing in rules for 2014.
ATA = Average total assets.
Banco BPI 2014 consolidated results
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