9m09 results presentationweb3.cmvm.pt/english/sdi/emitentes/docs/fr25715.pdf · 2020-05-20 · 9m09...

9M09 Results Presentation(Un-audited Figures)

28th October 2009 19M09 Results Presentation

Agenda

I. 9M09 Highlights

II. Recent Market & Macro Developments

III. 9M09 Consolidated Results

IV. Segment Reporting & Commercial Activity

V. Customer Credit and Funds

VI. Funding & Liquidity, AFS & Solvency

VII. Wrap Up


I. Results highlights

• Net income reached Eur 360.8mn in 9M09 up 7.8% YoY, implying a ROE of 9.4% and a ROA of 0.62%.

• International business critical to performance with net operating income growth of 46.4% YoY and a net income contribution

to results standing at 35.2%.

• NII continues to deliver good performance (+21.9% YoY), albeit decelerating on a quarterly basis given the fading of the

mismatch effect and the fact that credit re-pricing was largely concluded in 1H09.

• Fees & Commissions proved once again their resilience moving up 11.3% YoY in the 9M09. Trade finance (+77.6% YoY),

commissions on loans (+35.5% YoY) and corporate finance & project finance fees (+21.0% YoY) were among the standouts year

to date.

• Commercial Banking Income was up by 17.9% YoY, demonstrating once again BES ability to generate recurrent revenues in a

difficult market environment, both domestically (+13.3% YoY) and internationally (+34.2% YoY).

• Trading income delivered once again a positive contribution of Eur 108.3mn in 3Q09, boosting the year to date contribution to

Eur 280.4mn, or 16.4% of total banking income.

• Costs continue under a tight control, having increased by just 2.5% YoY in 9M09 mainly because of the increase in amortisation of actuarial differences (+ Eur 26.8 mn YoY). Excluding post employment benefits, operating costs would have

declined by 2.1% YoY. Reported Cost to Income was 45.4% at the end of 9M09 versus 52.3% a year ago.

• Provisions in the 9M09 showed a deceleration versus 2Q09. Cost of risk for the 3Q09 stood at 85 bp versus 147 bp in 2Q09

(114 bp ex Eur 40mn), with net new entries reducing to more than half in 3Q09 versus previous quarter (0.49% vs 1.08% in 2Q09)

and credit provision reserve still increasing to 2.91% (versus 2.81% in 2Q09).

• Potential capital gains on strategic stakes of AFS portfolio currently stand at Eur 291mn a significant increase of Eur 431mn

since the end of 2008.

• Capital ratios remain very solid, and BES is, as well, among the most capitalised Banks in Iberia, with core tier I at 8.2% and

Tier I at 8.8%.


I. Activity highlights

• Client acquisition levels accelerating: 97,000 new individuals, with affluent clients growing 46% YoY in the first

nine months of 2009. The 3Q09 monthly client acquisition rate stood 9% above than the one registered in the 1H09.

488 new SME clients were acquired in the 9M09.

• Total Credit increased by 2.9% YoY, and continues to be driven by the International business and Corporate

lending;

• Corporate lending remains the main driver of volume growth, increasing 5.1% YoY or Eur 1.7bn. On a QoQ

basis, corporate lending increased by Eur 222mn;

• Mortgage book declined by 1.6% YoY (despite increasing production levels) and Other Loans to Individuals

slightly increased by 0.8% YoY.

• International credit volumes remain strong, up 8.1% YoY to Eur 10.0bn, driven by corporate lending which

represents 92% of international portfolio; Total customer funds increased 13.4% YoY, driving the transformation

ratio of the international business to 65%.

• On a consolidated basis, deposits were up by 5.6% YoY and CDs grew a strong 25.9% YoY. In aggregate,

both have increased by Eur 3.2 bn YoY, clearly outpacing gross loans absolute growth of Eur 1.9bn in Eur

1.4bn, or 74% more. Total Transformation ratio stands at 119%.

• Off Balance sheet funds posted another quarter of good performance, increasing by 5.1% QoQ or Eur 934mn in

absolute terms, which reflects both the capital markets recovery and the commercial dynamism of BES in this area.


I. Main figures

(1) Net Assets + Asset Management + Off-balance sheet funds + Securitised credit

(2) Basel II ratios as of 9M09 (estimate) assume the Foundation approach for credit risk (Advanced for retail portfolios) and Standard method for operational risk, both certified by the Bank of Portugal. 9M08 ratios calculated based on standardised approach.

+2.5 pp8.8%6.3%%Tier I

Solvency: Basel II (2)

-0.01 pp0.620.63%ROA

+2.3 pp12.2%9.9%%Total

+2.7 pp8.2%5.5%%Core Tier I

-7.9 pp

-6.9 pp

7.9%

2.9%

8.5%

6.8%

-1.5 pp

7.8%

YoY

60.7

52.3

55,031

51,055

74,421

98,417

10.9

334.8

9M08

%

%

Eur mn

Eur mn

Eur mn

Eur mn

%

Eur mn

52.8Cost / Income (ex Markets & Others)

45.4Cost / Income

59,364Total Customer Funds

52,537Loans to Customers (incl. securitisation)

80,718Total Net Assets

105,149Total Assets under Management (1)

9.4ROE

360.8Net Income

9M09


Agenda

I. 9M09 Highlights






VII. Wrap Up


II. Markets Environment

Credit Spreads (Cash vs. CDS).Selected Stock Indices.

0

50

100

150

200

250

300

350

400

Jan. 2007 Jul. 2007 Jan. 2008 Jul. 2008 Jan. 2009 Jul. 2009

(bps)

iBoxx EUR Financials

iTRAXX Financials Senior 5yr30

50

70

90

110

130

150

170

Jun. 2007 Out. 2007 Fev. 2008 Jun. 2008 Out. 2008 Fev. 2009 Jun. 2009 Out. 2009

Eurostoxx 50

01 Ju

n. 2

007

= 10

0

S&P 500

Bovespa

Shanghai Composite

Sensex (India)

Source: Bloomberg & Reuters

Financial stabilisation and improved growth prospects with low inflationary pressures have resulted in stronger confidence in financial markets with

emerging markets outperforming and credit spreads narrowing across the board.


II. Macro Portugal: Highlights

y-o-y growth (p.p.)

Exports growth (y-o-y, July 2009) :Angola: 16.8%Maghreb: 15.5%

3

4

5

6

7

8

9

10

11

1995 1997 1999 2001 2003 2005 2007 2009

%

9.1

9.6Euro Area

Portugal

Source: INE, European Commission & Bloomberg

Unemployment rateContribution Net External Demand to GDP

Return to positive growth already in 2Q2009 (0.3% q-o-q). A gradual export-led recovery is on the way, leading to improvements in confidence levels. Portugal’s

unemployment rate remains below the Euro Area average.

-1.9

-1.3 -1.3 -1.2

0.1

1.4

-2.5

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

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

(% of labour force)


-5.0

-3.0

-1.0

1.0

3.0

5.0

7.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

%

2025303540455055606570

Index (Points)

GDP (LHS)

PMI Services (RHS)

PMI Manufacturing (RHS)

PMI Services, PMI Manufacturing and GDP(%, y-o-y).

6

8

10

12

14

16

18

20

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

% o

f labo

ur fo

rce

17.9

Quarterly unemployment rate(% of labour force)

II. Macro Spain: Highlights

Source: INE & Bloomberg

Domestic demand adjustments are still penalising growth and should delay a full recovery. But a stabilising trend is already visible in some activity indicators.


Oil production (mb/day)

External reserves (USD million)

0

5

10

15

20

25

Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep.

12.8

20.1

USD

billio

ns

2008 2009

1.4

1.5

1.6

1.7

1.8

1.9

Jan.2007

Apr. Jul. Oct. Jan.2008


Apr. Jul.

mb/

d

1.9

II. Macro Angola: Highlights

Source: BNA, OPEC & Bloomberg

Recovery in oil output and resilient activity in non-energy sectors are contributing to a reacceleration in growth. Scarcer USD liquidity in 1H2009 has forced a Kwanza

depreciation and higher interest rates. External reserves have now stabilised. GDP growth expected for 2009 at 5.0% clearly outpacing developed economies growth


II. Macro Brazil: Highlights

USD/BRL and Sovereign CDS spreadExternal Accounts

0

500

1000

1500

2000

2500

3000

3500

4000

2001 2002 2003 2004 2005 2006 2007 2008 2009

CDS

Spre

ad

1.5

2.0

2.5

3.0

3.5

4.0

USD/BRL

USD/BRL (RHS)Brazil CDS

5Y(LHS)

Source: IBGE, BACEN & Bloomberg

Rapid return to growth, based on strong exports and private consumption. Higher propensity to risk and the search for higher returns at the global level have

translated into a stronger Real. Selic rate with a final cut in 3Q2009, to 8.75%.

Trade balance (% of GDP)

Current Account Total (% of GDP)


II. The strong performance of Brazil is part of a trend of superior growth coming from emerging markets versus the developed countries

Contribution of main zones to global GDP growth

0.7

0.70.9

1.4

1.4

0.8 1.01.4

2.12.1

2.4 2.7

1.9

1.1

2.0

-4

-3

-2

-1

0

1

2

3

4

519

80

1985

1990

1995

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

USA Euro Area Japan Advanced - Ex US, EA, JP Emerging

%

Source: IMF, ES Research


II. This superior growth is a function as well of the low levels of leverage in emerging markets, with the burden of debt being clearly heavier in developed countries

Public Debt as a percentage of GDP

0

2 0

4 0

6 0

8 0

1 0 0

1 2 0

1 9 9 0 1 9 9 3 1 9 9 6 1 9 9 9 2 0 0 2 2 0 0 5 2 0 0 8 2 0 1 1 2 0 1 4

% o

f GD

P

Ad v a n c e d e c o n o m ie s

E m e rg in g a n d d e v e lo p in g

Source: IMF


Agenda

I. 9M09 Highlights






VII. Wrap Up


114.6

10.0

24.8

149.4

137.6

287.0

262.0

549.0

-30.7

108.4

471.3

171.0

300.3

3Q09

144.9

12.3

8.3

165.5

209.7

375.2

257.5

632.8

-1.7

123.7

510.8

175.9

334.9

2Q09

7.8%

64.8%

21.5%

12.5%

70.8%

35.4%

2.5%

18.2%

n.m.

31.8%

17.9%

11.3%

21.9%

YoY

-20.9%360.8334.8Net Income=

n.m.-40.6-13.1Other results+

-

-

=

-

=

-

=

+

=

+

+

-19.5%31.619.2Minority Interests

n.m.78.164.2Taxes

-9.8%470.5418.2Income Bef. Taxes and Minorities

-34.4%462.7270.9Net Provisions

-23.5%933.2689.1Net Operating Income

1.7%774.4755.3Operating Costs

-13.3%1,707.61,444.4Banking Income

-12.5%280.4212.8Capital Markets Results

-7.7%1,467.81,244.7Commercial Banking Income

-2.8%517.3464.7Fees and Commissions

-10.3%950.5780.0Net Interest Income

QoQ9M099M08(EUR million)



III. 9M09 Consolidated Results breakdown: Domestic vs. International

InternationalDomestic

3.4%

83.8%

-24.5%

5.8%

241.7%

46.4%

6.6%

30.4%

15.1%

34.2%

3.4%

52.4%

YoY

126.9

29.5

24.2

180.6

121.3

301.9

147.5

449.4

77.4

372.0

106.7

265.3

9M09

122.7

16.0

32.0

170.7

35.5

206.2

138.3

344.5

67.2

277.3

103.2

174.1

9M08

10.3%

-32.4%

67.5%

17.1%

45.1%

30.7%

1.6%

14.4%

22.6%

13.3%

13.6%

13.1%

YoY

233.9

2.1

53.9

289.9

341.4

631.3

626.9

1,258.2

162.4

1,095.8

410.6

685.2

9M09

212.1

3.2

32.2

247.5

235.4

482.9

617.0

1,099.9

132.5

967.4

361.5

605.9

9M08

=

-

-

=

-

=

-

=

+

=

+

+

35.2%Net Income

93.2%Minority Interests

31.0%Taxes

38.4%Income Bef. Taxes and Minorities

26.2%Net Provisions

32.3%Net Operating Income

19.0%Operating Costs

26.3%Banking Income32.3%Capital Markets Results & Other

25.3%Commercial Banking Income

20.6%Fees and Commissions

27.9%Net Interest Income

% of Total (Consolid.)

(euro million)


III. Albeit being impacted by an increase in provisions, international operations maintained a strong commercial dynamism

-19.9%22.6%% of consolidated

3.4%126.9122.7Total

-56.4%61.7%% of international

60.3%43.327.0UK

36.7%

20.0

75.79M08Net Income Contribution(EUR million)

35.2%

12.1

71.69M09

-

-39.6%

-5.5%YoY

% consolidated

Other

Strategic Triangle

Other 8.0

UK 43.3

France/Lux 4.0

Angola55.6

Spain -6.3Brazil

22.3( ) 9M08

(Eur mn)

(37.5)

(27.0)

(28.3) (9.9)

(12.4)

(7.6)

• Strategic triangle results impacted by the increase

in provisions of the Spanish operation although

operating income still growing at an healthy 48.1%;

• UK continued strong performance already

evidenced in 1H09 results with results growing

60.3% YoY in the 9M09 as operating income

boosted 96.2% YoY;

• Total International results accounted for 35.2% of

consolidated results.

110.3%59.128.1Spain

-9.8%44.449.2Brazil

48.1%209.9141.7Strategic Triangle

46.4%301.9206.2Total International

96.2%73.137.3UK

27.2

64.4

9M08Operating Income(EUR million)

18.9

106.4

9M09

-30.9%

65.2%

YoY

Other

Angola

Net Income Breakdown


NII 9M08 PriceEffect

VolumeEffect

MixedEffect

NII 9M09

III. NII Ytd continued to be strong (+21.9% YoY) in spite of the well flagged QoQreduction, as the mismatch effect faded and the re-pricing efforts concluded

(NIM

in b

p; A

ccum

ulat

ed F

igur

es)

258 253269

306315

335

300

176 171 170 176193 189196

0

50

100

150

200

250

300

350

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q0975

95

115

135

155

175

195

NII (quarter) NIM (Accum)

395406423

260180 164 185

3.253.38

1.681.47 1.58

2.18

3.58

0.0

100.0

200.0

300.0

400.0

500.0

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q090.000.501.001.502.002.503.003.504.00

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

-39-36-47

56

10910685

-0.61-0.59-0.74

0.90

1.981.881.55

-70.0

-20.0

30.0

80.0

130.0

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09-0.90

-0.40

0.10

0.60

1.10

1.60

2.10

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

Credit Margin Deposit Margin

Net Interest Income & Margin Breakdown Volume & Price Effect

780.084.4

77.5 8.6 950.5

(EUR mn)

+11.6%

+21.9%


III. Fees & Commissions have shown resilience once again in the quarter, benefiting from a recovery of capital markets related fees

Capital Markets Related Fees**Trade Finance & Export Related Fees

Total Fees & Commissions * Traditional & Cross Selling Fees

171.0175.9170.3

464.7517.3

9M08 9M09 1Q09 2Q09 3Q09

118.3130.7124.3

320.2373.5

9M08 9M09 1Q09 2Q09 2Q09

9.912.817.1

22.4

39.7

9M08 9M09 1Q09 2Q09 3Q09

* Breakdown in appendix** Corporate Finance & Project Finance + Securities + Asset Management

52.745.245.9

144.4 143.8

9M08 9M09 1Q09 2Q09 3Q09

(EUR mn)(EUR mn)

(EUR mn)(EUR mn)

11.3%

-2.8%

16.6%

-9.5%

-0.4%

16.6%

77.6%

-23.1%

Bancassurance: +15.8% YoYCommissions on Loans: +35.5% YoYGuarantees: +28.5% YoY


108.2123.8

48.3

280.4

212.8

9M08 9M09 1Q09 2Q09 3Q09

Capital Markets Results Breakdown

Capital Markets Results*

* Breakdown in appendix

(EUR mn)

197.2 35.2 14.8

-26.6

79.1 5.7 280.4

(EUR mn)

14.7%

16.4%

19.6% 19.7%

% Bkg Income

1H09Interest Rate

Credit FX & Other

Equity Divid. 9M09 Prov. 9M09 net of Prov.

-37.5242.8

Interest Rate

Credit FX & Other

Equity Divid.

-81.3-21.2

15.4

62.0 172.1

Stronger outlook for both US and Euro Zone economies;

Continuous aggressive monetary policies followed by Central Banks on a historical low interest rate environment;

Continued depreciation of US Dollar against other currencies;

Credit spreads narrowing along with the reduction of liquidity premium;

Liquidity excess decreased risk aversion sentiment, causing an increased demand on credit markets;

The strong performance of global equity markets explain most of the positive results achieved in this area.

III. Capital Markets Results maintained a strong contribution to banking income fuelled by interest rate and equity trading

9.2%

1H09

3Q09


III. Other Results in 9M09 confirmed the recovery pattern of BES Vida as reduction of market impairments leaves room for higher reflection in bottom line of good commercial performance

-1.8

-15.4

2.3

11.3

13.6

2Q09

n.m.

n.m.

-49.6%

n.m.

112.9%

YoY

-30.7

-38.1

0.3

7.1

7.4

3Q09

n.m.

n.m.

n.m.

-37.2%

-45.6%

QoQ

-61.2-22.8Other

-40.6

6.3

14.3

20.6

9M09

-13.1

12.5

-2.8

9.7

9M08

… BES Vida

… Other

(euro mn)

Other Results

Equity accounted earnings, o.w.

Other Results Breakdown


III. Operating Costs performance in 9M09 continued to reflect BES’ tight cost control policies, namely in staff expenses (-2.1% ex-post employment benefits YoY) and administrative costs (-5.1% YoY)

Administrative Costs Depreciation & Amortisation

Total Operating Costs & Cost to Income Staff Costs

257.5 262.0

755.3 774.4

9M08 9M09 2Q09 3Q09

140.8138.8

391.5 417.6

9M08 9M09 2Q09 3Q09

22.021.9

56.865.5

9M08 9M09 2Q09 3Q09

99.396.9

307.0 291.2

9M08 9M09 2Q09 3Q09

(EUR mn)(EUR mn)

(EUR mn) (EUR mn)

6.7%

-5.1%

2.4%

1.4%

Total Staff Costs down 2.1% YoY ex Post Employment

Benefits

15.4%

0.6%

1.7%

52.3% 45.4%

40.7% 47.7%

Cost to Income

2.5%


III. Provisions for credit yearly increase reflects the still challenging economic environment. However, in 3Q09, were down to an annualised 85bp of gross loans – 62bp below 2Q09 peak level

Securities Provisions Other Provisions

Total Provisions Credit Provisions & Cost of Risk

177.5137.5 104.2

200.7

378.3

9M08 9M09 2Q09 2Q09 3Q09

137.6209.7

270.9

462.7

9M08 9M09 2Q09 3Q09

18.517.5

42.3 46.9

9M08 9M09 2Q09 3Q09

14.914.7

27.9

37.5

9M08 9M09 2Q09 3Q09

(EUR mn)(EUR mn)

(EUR mn) (EUR mn)

57 103

147114

Cost of Risk

Ex-Reinf.

85


III. The lower cost of risk has not impaired the effort of maintaining credit provision reserve at high levels, having in fact increased to 2.91% in 3Q09, and is also a reflection of a reduction to half of net new entries in the quarter

1.82%

2.3%

1.9% 1.8%2.1%2.1%

1.9%

1.5%

1.3%1.2%

1.3%

1.5%1.77%

1.56%2.0%

1.7%

1.5%

1.8% 1.8%

1.6%

1.3%

1.1%1.0%

1.1%1.2%

1.42%

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 1Q092Q093Q09

Overdue Loans/Gross Loans Overdue Loans (over 90 days)/Gross Loans

159%

123%

159%163%

180%

195%

184%

137%132%131% 132%

140%

170%

186%

198%

210%219%

229%218%

197%

167%

153%149%

155%138%

161%

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 1Q09 2Q09 3Q09

Coverage of Overdue Loans Coverage of Overdue Loans (> 90 days)

Credit Provisions Reserve Net New Entries as % of Performing Loans

NPL’s Evolution Coverage Evolution

2.33% 2.35% 2.35% 2.38% 2.52%2.81% 2.91%

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

0.41%0.52% 0.55%

0.37%

1.07% 1.08%

0.49%

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

(quarterly annualised)


Agenda

I. 9M09 Highlights






VII. Wrap Up


IV. The BES Group is composed of eight operational segments (including the corporate centre)

118.8

13.4

168.7

122.6

48.1

21.3

136.1

-158.7

470.5

Income before Taxes and Minorities9M09. Euro million

Total Group

Retail

Private Banking

Corporate and Institutional Clients

International Commercial Banking

InvestmentBanking

Asset Management

Markets & Strategic Participations

CorporateCentre

Dom

estic

Com

mer

cial

B

anki

ng

Δ YoY

+13.8%

-14.3%

-25.4%

+23.4%

-30.2%

-15.3%

…

-5.3%

+12.5%

EUR mn

455.3

29.5

379.0

337.8

160.9

38.2

306.8

1,707.5

Δ YoY

-8.6%

-17.5%

+16.0%

+44.0%

+7.6%

-7.0%

+93.7%

+18.2%

Banking Income9M09

Operating Costs9M09

Net Provisions9M09

EUR mn

311.3

17.0

44.9

115.2

75.1

17.0

35.2

158.7

774.4

Δ YoY

-3.7%

-9.1%

-1.1%

+12.8%

+8.9%

+6.0%

+16.6%

+5.3%

+2.5%

EUR mn

25.1

-1.0

165.3

100.1

37.6

-0.1

135.6

462.7

Δ YoY

-64.4%

-170.3

+199.8%

…

…

+13.3%

+36.8%

+70.8%


IV. Retail contribution increased by 13.8% YoY, backed by low impairment and a strong commercial activity, focused on client acquisition and client loyalty

Client Acquisition 9M09 Retail Banking 9M09 YoYRetail Banking Sales 9M09

Client Involvement

ClientFunds

Client involvement: credit and funds

Credit

TotalGroup

Inter-national

Domestic

97 9

88

+1.5%

-3.4%

+7,2%

Affluent: +46.0%

• Affluent: +8.6%• Mass Market: +5.4%• Small Businesses: +5.0%

Value-added products soldThousands

9M08 9M09

530639

+20%

• Pension Plans: +37% YoY (production market share: 34.1%, rank: #1)

• Mortgages production: +63% in 3Q09 vis-à-vis 1H09

• Auto Insurance: +66% YoY• Direct Debits: +182% YoY (stock)

(Thousand clients)

Acquisition in the 3Q09 grew by 9% vis-à-vis 1H09


IV. Corporate Banking is the strongest contributor to the Group’s results, due to the strong franchise with Portuguese companies (particularly with companies with international activities)

Middle Market 9M09 YoY Wholesale Banking 9M09 YoY

ClientInvol-

vement

ClientFunds

Credit

+13.2%

+6.7%

+28.1%

ClientInvol-

vement

ClientFunds

Credit

+5.2%

+5.4%

+3.8%

On-Balance Sheet Funds• Middle Market: +3.7%• Wholesale : +26.9%

Impact of the ongoing cross selling initiatives in these segments in terms of commissions

• Domestic Trade Finance: +187%

• Investment Banking Services: +258%

• Renting: +39%

• Life insurance: +34%

Cross Selling 9M09


IV. Investment Banking: growth with increased internationalisation

Net IncomeBanking Income

Banking Income 9M09: Eur 161 (9% YoY)

International59%

Portugal41% Net

Interest Income

28%

Fees & Commissions

49%

Capital MktsResults

23%

Net Income 9M09: Eur 34mn (-19% YoY)

International79%Portugal

21%

Domestic market:

Fixed Income and Project Finance continued to lead the

way

Financial Advisor to Altavia Tejo consortium on the

proposal for the High Speed Link Concession Lisboa –

Poceirão which includes the third bridge over Tagus River.

Leadership of the Portuguese Brokerage market, ending

September with a 16.9% accumulated market share (11.7%

at the end of 2008).

International Market:

SPAIN: Brokerage ranking 4th place and market share increase (7.1% from 5.6% at the end of 2008).

SPAIN: (i) Financial Advisor to EDP in the acquisition of low pressure gas distribution networks from Gas Natural (ii)Mandated Lead Arranger on the ACS Cobra €342 million financing for a thermo solar plant.

BRAZIL: (i) Bookrunner of the Tender and Exchange Offer of Banco Mercantil do Brasil (ii) Joint-Lead and Bookrunner of the Bradespar BRL 800 million local bond issue; (iii) Co-Manager of the USD 750 million BancoBradesco Subordinated Debt issue.

MOROCCO: Financial Advisor to PT in the sale of 32.18% equity stake and outstanding shareholders loans in Méditel.


Agenda

I. 9M09 Highlights






VII. Wrap Up


V. Total loan book increased 2.9% YoY focusing mostly on supporting the corporate segment (+5.1%) and the international business (+8.1% YoY)

Other Loans to Individuals Book

Corporate Loan BookLoan Portfolio

Mortgage Book

41,829 42,232 42,562

9,226 9,9759,996

9M08 1H09 9M09Domestic Portfolio International Portfolio

14,293 14,032 14,081

554 523539


25,130 25,803 26,023

8,330 9,1409,139


2,407 2,397 2,458

341 312318


YoY %

(EUR mn)

(EUR mn)

(EUR mn)

(EUR mn)

+9.7%+8.1%

-8.5% -5.7%

+1.8% +3.6%

-1.5%2.1%

51,055 52,228 52,537 33,460 34,942 35,163

2,748 2,715 2,770 14,847 14,571 14,604


V. Customer funds grew on total 7.9% YoY driven a sharp increase in deposits & CD’s (+10.5% YoY). In absolute terms deposits & CD’s have outpaced gross loans growth by Eur 1.4bn YoY (74%)

Deposits & CD’s Transformation Ratio*

Total Customer Funds On BS Funds & Off BS Funds

38,780 41,486 40,939

16,251 18,42516,892


40,10440,05237,536

18,326 19,26017,495

9M08 1H09 9M09On BS Off BS

23,117 25,156 24,416

7,413 9,3347,806

9M08 1H09 9M09Deposits CD's

YoY %

1.88 1.951.97

1.881.99 1.78 1.86

1.191.181.231.231.231.181.24

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

Core Total

* Core = On BS Credit / DepositsTotal = On BS Credit / On BS Customer Funds

(EUR mn)(EUR mn)

(EUR mn)

+5.6%

+13.4% +10.1%

+6.8%

+25.9%

+5.6%

55,031 58,378 59,364


Agenda

I. 9M09 Highlights






VII. Wrap Up


VI. BES refinancing needs for the full 2009 have been surpassed in Eur 1.2bn in 9M09

12 12 13 14

62 63 60 59

26 25 27 271

-59M08 2008 1H09 9M09

Capital Customer Funds MLT Funds Treasury Gap

5.2 4.73.8

2009 2010 2011 2012

Repoable Securities Funding Activity during the quarter

Funding Structure Medium Long Term Maturity Profile

4.6 4.4 4.2 4.0

8.7 8.6 9.1 9.0

2008 1Q09 2Q09 3Q09

ECB eligibleTotal

(EUR bn)

(EUR bn)

(%)

BES maintains a well balanced funding structure, resulting in a liquidity surplus up to 1Y at the end of 3Q09. Customer Funds showed a strong performance (+Eur 2.6 bn YoY) but its weight on total funding declined 3 p.p. due to the raise of medium and long term funds (Eur 2.4 bn YoY) and the rights issue concluded in April (capital instruments increased Eur 1.9 bn YoY).

In the context of a global revision for Portuguese Banks, Moody’s downgraded BES senior unsecured debt rating to A1 (from Aa3) and BFSR to C- (from C+), with outlook stable

2009 refinancing needs

YtD funds raised

3.24.4


VI. BES has recently created a holding company, Avistar, that aggregates the holdings in Bradesco, PT and EDP. No changes from a consolidated balance sheet perspective

Main Highlights

. Holding incorporated in Portugal;

. More than Eur 1bn in assets;

. Eur 100mn in capital;

. Purpose of reducing capital volatility and increase efficiency in capital management;

. Intention of opening the holding to minorities and eventual listing in 2010, subject to market conditions;

. Possibility of further diversifying the investment portfolio;


VI. Total potential gross gains stood at Eur 291mn benefiting from the recovery of the strategic positions in Bradesco, PT and EDP, that have recovered Eur 431mn since the end of 2008

Portugal TelecomStake: 5.83%

EDPStake: 2.35%

Potential Capital Gains & Losses * BradescoStake: 2.52%

291.0

58.3102.6

-179.5 -189.2

9M08 4Q08 1Q09 2Q09 3Q09

297.5

147.4178.3

-20.5 -5.2

9M08 4Q08 1Q09 2Q09 3Q09

-15.7-31.8-29.5-91.2 -105.4

9M08 4Q08 1Q09 2Q09 3Q09

2.8

-64.8-54.0 -75.8 -84.9

9M08 4Q08 1Q09 2Q09 3Q09

(EUR mn)(EUR mn)

(EUR mn) (EUR mn)

* Includes Bradesco, PT, EDP and BMCE


VI. The strategic position held in Bradesco is backed by sound fundamentals supporting the Brazilian economy that have been recognised by investors worldwide

-60

-40

-20

0

20

40

60

80

2003 2004 2005 2006 2007 2008 20090.99

1.3

1.34

2.44

India

China

Russia

Brazil

EM equity fund flows (USD bn) EM equity fund flows (USD bn)

Brazil top of the BRIC’s for recent fund flows

Source: EPFR Global, FT.

Record fund inflows in 2009 for EM

“Brazil has been the standout performer in October as equity investors have pumped in USD 2.44bn which is almost twice the inflows seen to China in the month. Brazil is one of the world’s largest commodity producers and has benefited from strong growth in China, as well as broader

optimism about global economic recovery.” Financial Times

Source: EPFR Global, FT. Data for October 2009


VI. BES solvency ratios remain as one of the highest of Iberia

RWA Components Evolution* Tier I Capital

Solvency Ratios Evolution* RWA

8.28.37.86.0 5.7 5.5 6.1 5.8

8.88.88.66.67.16.36.66.8

12.212.211.99.9

11.39.99.710.1

1Q08 2Q08 3Q08 4Q08 1Q09 1Q09PF

2Q09 3Q09

Core Tier I Tier I Total Capital

62,02659,48859,09555,70557,543 59,183 61,150

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

* From 4Q08 onwards use of IRB Foundation

(EUR mn)

(EUR mn)

Standard IRB

3,146

3,742

52,600

2Q09 (IRB)

3,146

3,159

52,790

1Q09 (IRB)

2,840

2,878

49,987

4Q08 (IRB)

3,146Op. Risk

3,712Trading Book

55,168Banking Book

3Q09 (IRB)

600 600 600

600 600 600

5,0744,9224,6153,4153,4123,345

3Q08 4Q08 1Q09 1Q09PF

2Q09 3Q09

(%)

Core Tier IPreferred Shares


Agenda

I. 9M09 Highlights






VII. Wrap Up


VII. Wrap up

• BES 9M09 results marked the first YoY increase of the year with net profit achieving Eur 360.8mn corresponding to

an increase of 7.8% YoY.

• International business evermore important as net operating income grew 46.4% YoY, confirming the operating

dynamism and strategic rationale of BES international operations focused on the Southern Atlantic axis. Total

net income contribution stood at 35.2% of the consolidated net income.

• It is also important to stress the increasingly important role that BES has been assuming in the support of

companies (Portuguese but not only) that seek potential growth to emerging markets where BES is present,

namely Angola and Brazil.

• The good strategic positioning of BES has allowed for resilient top line in these difficult times with commercial

banking income growing 17.9%.

• Additionally BES continued to control costs in an effective manner achieving further efficiency gains, even

starting from a more efficient base than peers. Cost to income stood at a healthy 45.4% in 9M09.

• The 9M09 results also showed a reduction of cost of risk and quarterly net new entries of NPL’s, while credit

provisions reserve continued to increase, once again highlighting BES conservativeness in managing risks.

• The strategic positions held by BES in the AFS portfolio have also recovered, moving up by Eur 431mn since the

end of 2008, thus confirming, namely with regards to Brazil and Bradesco, the merits of these long term holdings.

• In terms of solvency, BES maintains a core tier I ratio among the best in Iberia with 8.2% at the end of the 9M09

(8.3% if including the 3Q09 net profit).

• All in all BES posted what we believe are a solid set of results across the board and will continue to pursue a

shareholder value creation course, while navigating in a still uncertain, albeit recovering environment.


Appendix I: Quarterly Data


Quarterly consolidated income statement

-20.9%

-19.5%

199.6%

-9.8%

-34.4%

-23.5%

1.7%

-13.3%

n.m.

-12.5%

-7.7%

-2.8%

-10.3%

QoQ

114.6

10.0

24.8

149.4

137.6

287.0

262.0

549.0

-30.7

108.4

471.3

171.0

300.3

3Q09

144.9

12.3

8.3

165.5

209.7

375.2

257.5

632.8

-1.7

123.8

510.8

175.9

334.9

2Q09

101.3

9.3

45.0

155.6

115.4

271.0

254.7

525.7

-8.2

48.3

485.6

170.3

315.3

1Q09

67.5

5.7

19.3

92.5

105.0

197.5

246.3

443.8

-49.9

16.0

477.7

171.6

306.1

4Q08

70.7

5.3

-13.0

63.0

89.9

152.9

255.5

408.4

-5.0

-14.4

427.8

158.8

269.0

3Q08

145.9

6.2

20.3

172.4

68.2

240.6

241.5

482.1

1.3

71.8

409.0

150.7

258.3

1Q08

62.3%

89.0%

n.m.

137.1%

53.0%

87.6%

2.6%

34.4%

n.m.

n.m.

10.2%

7.7%

11.6%

YoY

7.8%

64.8%

21.5%

12.5%

70.8%

35.4%

2.5%

18.2%

n.m.

31.8%

17.9%

11.3%

21.9%

9M09/9M08

118.2

7.7

56.9

182.8

112.7

295.5

258.4

553.9

-9.4

155.4

407.9

155.1

252.8

2Q08

- Minorities

- Taxes

= Income Bef. Taxes and Min.

= Net Income

+ Other Results

- Net Provisions

= Net Operating Income

- Operating Costs

= Banking Income

+ Capital Markets Results

= Commercial Banking Income

+ Fees and Commissions

+ Net Interest Income

(EUR million)


Quarterly domestic income statement

-37.1%

n.m.

263.8%

-26.0%

-40.7%

-34.2%

0.5%

-19.2%

-43.9%

-13.1%

-14.7%

-12.2%

QoQ

72.5

-0.4

17.4

89.6

91.2

180.8

211.0

391.8

52.9

338.9

126.1

212.8

3Q09

115.2

1.2

4.8

121.1

153.6

274.8

210.0

484.8

94.5

390.2

147.9

242.4

2Q09

46.1

1.3

31.6

79.0

96.7

175.7

205.8

381.5

14.8

366.7

136.7

230.0

1Q09

47.0

2.3

18.2

67.6

68.9

136.5

199.9

336.4

-29.1

365.6

138.5

227.1

4Q08

25.2

-0.1

-18.8

6.5

74.9

81.4

211.5

292.9

-28.6

321.5

116.5

205.0

3Q08

77.8

1.9

37.6

117.3

98.3

215.6

210.6

426.2

108.9

317.3

121.7

195.6

2Q08

187.8%

n.m.

n.m.

n.m.

21.8%

122.1%

-0.2%

33.8%

n.m.

5.4%

8.3%

3.8%

YoY

109.1

1.3

13.3

123.7

62.1

185.8

194.9

380.7

52.0

328.7

123.3

205.4

1Q08

10.3%

-32.4%

67.5%

17.1%

45.1%

30.7%

1.6%

14.4%

22.6%

13.3%

13.6%

13.1%

9M09/9M08

- Minorities

- Taxes


= Net Income

- Net Provisions


- Operating Costs

= Banking Income

+ Capital Markets & Other Results




(EUR million)


Quarterly international income statement

41.9%

-7.7%

110.9%

34.8%

-17.4%

5.6%

7.4%

6.2%

-9.8%

9.8%

60.1%

-5.4%

QoQ

42.1

10.3

7.3

59.7

46.4

106.1

51.0

157.1

24.7

132.4

45.0

87.5

3Q09

29.7

11.1

3.5

44.3

56.2

100.5

47.5

148.0

27.4

120.6

28.1

92.5

2Q09

55.2

8.0

13.4

76.6

18.7

95.3

48.9

144.2

25.3

118.9

33.6

85.3

1Q09

20.5

3.4

1.0

24.9

36.1

61.0

46.4

107.3

-4.8

112.1

33.1

79.0

4Q08

45.5

5.3

5.7

56.5

15.1

71.5

44.0

115.5

9.1

106.4

42.4

64.0

3Q08

40.4

5.8

19.3

65.5

14.4

79.9

47.7

127.6

37.0

90.6

33.4

57.2

2Q08

-7.4%

93.8%

29.2%

5.8%

208.1%

48.4%

15.9%

36.0%

171.2%

24.4%

6.0%

36.7%

YoY

36.8

4.9

7.0

48.7

6.1

54.8

46.6

101.4

21.1

80.3

27.4

52.9

1Q08

3.4%

83.8%

-24.5%

5.8%

241.7%

46.4%

6.6%

30.4%

15.1%

34.2%

3.4%

52.4%

9M09/9M08

- Minorities

- Taxes


= Net Income

- Net Provisions


- Operating Costs

= Banking Income

+ Capital Markets & Other Results




(EUR million)


Angola: Quarterly income statement

2.2%

6.9%

1.3%

-0.7%

-0.3%

-0.5%

6.9%

13.0%

13.0%

3.0%

4.5%

2.4%

71.0%

-11.2%

QoQ

-8.4%1,634.71,599.51,697.11,680.61,508.21,248.3938.9On BS Customer Funds

-21.1%3,942.13,891.43,659.93,530.23,256.11,839.01,405.7Total Assets

-61.7%1,623.71,518.21,428.41,180.31,004.0802.2586.1Total Credit

26.0%23.6%31.6%33.9%29.4%30.2%39.2%Cost to Income

99.3%

19.7

16.0

35.6

2.0

37.7

13.2

50.9

14.3

36.6

10.1

26.5

3Q09

66.6%

15.8

7.7

23.5

1.9

25.4

10.6

36.0

-0.3

36.3

16.9

19.5

3Q08

70.2%

10.7

10.8

21.6

1.0

22.6

11.6

34.2

2.8

31.5

11.6

19.8

4Q08

64.3%

12.5

9.1

21.6

1.1

22.7

9.8

32.5

40

28.4

7.2

21.2

2Q08

84.2%

16.0

13.1

29.1

1.9

31.0

14.3

45.3

11.5

33.8

11.8

22.0

1Q09

62.4%

9.2

6.4

15.6

0.7

16.3

10.5

26.8

9.0

17.8

3.6

14.2

1Q08

28.6%0.6%35.8Commercial Banking Income

=

48.2%24.7%19.9Net Income=

94.9%

16.0

35.9

1.8

37.7

11.7

49.5

13.7

5.9

29.8

2Q09

94.4%

65.9%

54.3%

65.2%

27.1%

52.9%

211.2%

0.6%

42.7%

9M09/9M08

106.4%

51.6%

5.5%

24.9%

24.9%

41.3%

n.m.

-40.2%

36.1%

YoY

-

=

-

=

-

=

+

+

+

Total Credit / On BS C.Funds

Taxes & Minority Interests

Income Bef. Taxes & Min.

Net Provisions

Net Operating Income

Operating Costs

Banking Income

Capital Markets Results & Other

Fees and Commissions

Net Interest Income

(EUR million)


Spain: Quarterly income statement

-1.5%

-

n.m.

n.m.

n.m.

-12.1%

-1.9%

-3.8%

-2.9%

-87.5%

7.2%

38.6%

-3.3%

QoQ

--51.9%52.5%58.2%71.2%71.6%75.2%64.5%Cost to Income

4,104.8

-4.5

-3.8

-8.3

28.0

19.7

21.3

41.0

0.6

40.5

13.1

27.3

3Q09

4,168.0

-8.7

-3.2

-11.8

31.9

20.1

22.2

42.3

4.5

37.8

9.5

28.3

2Q09

3,793.1

2.6

0.6

3.2

4.4

7.6

23.0

30.6

2.8

27.8

11.4

16.4

2Q08

3,920.2

0.3

-0.7

-0.4

8.2

7.8

19.7

27.5

-1.1

28.5

11.7

16.8

3Q08

4,182.5

-8.7

-5.1

-13.8

22.7

8.9

22.0

30.9

-0.5

31.4

9.7

21.7

4Q08

4,128.2

6.7

2.2

9.0

10.3

19.3

21.6

40.9

2.9

38.0

8.9

29.1

1Q09

3,629.1

7.0

1.8

8.8

3.9

12.7

23.1

35.8

3.5

32.3

15.0

17.3

1Q08

31.1%41.8%Commercial Banking Income

=

-164.1%

n.m.Net Income=

4.7%

n.m.

n.m.

242.3%

152.8%

8.3%

49.4%

n.m.

12.0%

62.7%

YoY

-

n.m.

-195.4%

325.4%

110.3%

-1.0%

32.3%

52.0%

-17.4%

67.8%

9M09/9M08

-

=

-

=

-

=

+

+

+

Credit



Net Provisions


Operating Costs

Banking Income



Net Interest Income

(EUR million)


Brazil: Quarterly income statement

-26.5%

-55.0%

-36.9%

77.4%

-21.8%

9.0%

-14.3%

-34.6%

20.4%

-7.1%

37.2%

QoQ

30.7%

7.4

2.6

10.0

4.3

14.3

6.4

20.7

10.0

10.7

3.1

7.6

3Q09

29.5%

4.7

3.9

8.6

3.1

11.7

4.9

16.6

7.6

9.0

3.4

5.6

1Q09

20.3%

11.6

15.1

26.7

0.4

27.1

6.9

34.0

29.0

5.0

3.9

1.2

2Q08

24.9%

10.5

2.7

13.2

0.7

13.9

4.6

18.5

14.5

4.0

4.0

0.0

3Q08

115.6%

1.5

-4.9

-3.4

2.9

-0.5

3.7

3.2

-6.6

9.8

0.0

9.8

4Q08

24.0%

10.2

5.7

15.9

2.4

18.3

5.8

24.2

15.3

8.9

3.4

5.5

2Q09

39.7%

6.2

1.9

8.1

0.1

8.2

5.4

13.6

7.7

5.9

3.1

2.8

1Q08


=

-21.1%-29.3%Net Income=

-2.8%

-23.9%

511.2%

3.2%

38.7%

12.0%

-31.2%

-21.0%

n.m.

YoY

-37.6%

-27.9%

692.9%

-9.8%

1.2%

-7.0%

-35.9%

-9.1%

367.0%

9M09/9M08

-

=

-

=

-

=

+

+

+

Cost to Income



Net Provisions


Operating Costs

Banking Income



Net Interest Income

(EUR million)


UK: Quarterly income statement

113.2%

n.m.

n.m.

-50.5%

20.5%

8.1%

18.9%

n.m.

23.6%

176.7%

-14.9%

QoQ

12%

14.7

2.3

17.0

9.7

26.7

3.6

30.3

-1.2

31.5

14.2

17.3

3Q09

10%

21.7

1.4

23.1

1.2

24.3

2.8

27.1

1.9

25.2

5.2

20.0

1Q09

21%

5.5

-0.6

5.0

7.4

12.4

3.3

15.7

-1.8

17.5

6.5

11.0

2Q08

19%

13.1

0.2

13.3

1.3

14.6

3.4

18.0

-5.4

23.4

4.4

19.0

3Q08

14%

14.7

2.2

16.9

6.5

23.4

3.7

27.1

0.7

26.4

6.4

20.0

4Q08

13%

6.9

-4.3

2.6

19.5

22.1

3.3

25.5

0.0

25.4

5.1

20.4

2Q09

25%

8.4

0.9

9.3

1.0

10.3

3.4

13.7

-0.1

13.8

2.1

11.7

1Q08


=

60.3%12.1%Net Income=

n.m.

27.9%

n.m.

83.0%

5.2%

68.1%

n.m.

218.2%

-8.8%

YoY

n.m.

55.1%

212.6%

96.2%

-3.7%

74.8%

-110.4%

87.2%

38.3%

9M09/9M08

-

=

-

=

-

=

+

+

+

Cost to Income



Net Provisions


Operating Costs

Banking Income



Net Interest Income

(EUR million)


-2.8%

20.3%

-0.1%

-38.8%

6.0%

14.5%

41.0%

-9.8%

2.4%

-23.1%

-11.0%

-2.8%

QoQ

171.0

20.6

1.9

12.2

9.0

27.0

13.0

18.3

12.7

9.9

25.1

21.5

3Q09

170.3

27.2

1.6

12.1

8.0

22.7

12.5

13.8

10.7

17.0

23.7

21.0

1Q09

175.9

17.1

1.9

19.8

8.5

23.6

9.2

20.2

12.4

12.8

28.1

22.1

2Q09

171.6

24.6

1.9

9.0

9.2

23.4

13.9

17.0

14.5

10.6

25.0

22.5

4Q08

158.8

19.4

1.7

12.3

8.6

25.3

14.3

13.7

9.4

10.0

19.8

24.3

3Q08

155.1

24.2

1.7

12.3

9.3

25.0

9.1

14.6

7.8

8.4

21.0

21.6

2Q08

7.7%

6.2%

11.3%

-0.8%

4.4%

6.5%

-8.9%

32.9%

35.2%

-1.1%

26.6%

-11.6%

YoY

150.7

21.1

1.5

13.6

8.0

27.2

13.9

12.3

12.5

4.0

16.0

20.6

1Q08

77.6%Trade Finance & Exp. related (1)

21.0%Corporate & Project Finance

11.3%

1.3%

12.3%

15.8%

-1.7%

-5.5%

-6.8%

28.5%

35.5%

-2.8%

9M09/9M08

Other

Bancassurance

Factoring

Guarantees

Total Fees & Commissions

Cards

Asset Management (3)

Securities related fees (2)

Commissions on Loans

Account Management Fees

(EUR million)

Quarterly fees & commissions

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

Note: change calculated based on figures in thousand euros


Quarterly capital markets results and VAR

1.04%54.65

-30.87

29.2833.6722.57

109.0

14.7

123.7

60.4

59.4

119.8

-8.0

-3.2

15.1

3.9

2Q09

0.75%40.70

-21.09

22.3226.4413.04

93.4

14.9

108.3

5.7

79.1

84.8

-26.5

14.8

35.2

23.5

3Q09

0.80%31.33

-22.25

10.6021.8021.18

40.4

- 7.9

48.3

1.6

-44.0

-42.4

-13.3

-78.1

182.1

90.7

1Q09

VAR – value at risk32.5812.037.5621.97Interest Rate25.0127.9035.3212.31FX9.237.2314.885.85Equity & Commodities

-19.57-17.58-18.44-16.01Diversification Effect47.2629.5839.3124.12Global VAR

-14.2-22.0137.369.5Capital Markets net of Provisions for securities

1.01%

-18.0

155.4

52.7

96.0

148.7

-31.1

-38.5

76.3

6.7

2Q08

0.76%

-7.6

-14.5

3.1

-16.0

-12.9

-16.3

-40.5

55.2

-1.6

3Q08

1.20%

-30.2

16.0

18.4

-84.1

-65.7

21.6

-57.6

117.7

81.7

4Q08

13.0… Interest rate

-7.9… Credit

22.5… FX & Other

-2.3Provisions for Securities

71.8Capital market results

17.7… Income from securities

0.61%

26.5

44.2

27.6

1Q08

Global VAR as % of Tier I

… Trading

Equity

Interest Rate & FX

(EUR million)


Quarterly other resultsReconciliation between IFRS P&L and Presentation

-18.9

106.7

14.5

102.3

1H09

-7.2

96.5

9.2

98.5

1Q09Accumulated

-40.3

-4.6

37.0

-7.9

FY08

-21.9

-4.4

27.1

0.9

9M08

-15.3

-0.5

19.7

3.9

1H08

-10.8

0.8

8.0

-2.0

1Q08

-43.0… Other

120.0… Capital Markets

23.6… Fees

100.6Other Results, ow

9M09(EUR million)

-11.7

10.2

5.3

3.8

2Q09

-7.2

96.5

9.2

98.5

1Q09Quarterly

-18.4

-0.2

9.9

-8.8

4Q08

-6.6

-3.8

7.4

-2.9

3Q08

-4.4

-1.3

11.7

6.0

2Q08

-10.8

0.8

8.0

-2.0

1Q08

-24.1… Other

13.3… Capital Markets

9.1… Fees

-1.7Other Results, ow

3Q09(EUR million)


Quarterly: Equity Accounted Earnings

0.3

7.1

7.4

3Q09

-89.7%

n.m.

311.1%

YoY %

-87.0%

-37.2%

-45.2%

QoQ %

2.3

11.3

13.6

2Q09

3.7

-4.1

-0.4

1Q09

Equity Accounted Earnings

5.0

-35.0

-30.0

4Q08

2.8

-1.0

1.8

3Q08

2.6

-7.6

-5.0

2Q08

7.1

5.8

12.9

1Q08

… Others

… BES Vida


(EUR million)

6.3

14.3

20.6

9M09

-49.6%

n.m.

112.4%

YoY %

6.0

7.2

13.2

1H09

3.7

-4.1

-0.4

1Q09


17.5

-37.8

-20.3

FY08

12.5

-2.8

9.7

9M08

9.7

-1.8

7.9

1H08

7.1

5.8

12.9

1Q08

… Others

… BES Vida


(EUR million)


Quarterly operating costs

1.7%

0.4%

2.4%

64.7%

20.4%

-4.7%

-1.6%

-0.8%

1.5%

QoQ

262.0

22.0

99.2

1.0

16.9

12.1

22.0

101.1

140.8

3Q09

250.5%98.4%12.712.76.26.12.32.3… Amortisation actuarial differences

254.8

21.6

95.0

1.0

15.1

21.3

100.7

138.1

1Q09

-38.9%9.8%0.61.30.92.50.8…Long term service benefits

-8.9%4.0%14.016.616.316.615.5…Other

107.1%35.5%22.216.116.27.57.9…Post Employment Benefits, ow

241.4

17.7

98.9

100.7

124.9

1Q08

258.3

18.8

106.5

106.5

133.0

2Q08

257.5

21.9

96.9

101.9

138.8

2Q09

246.4

21.1

95.7

95.6

129.5

4Q08

255.5

20.3

101.6

100.2

133.7

3Q08

2.6%

8.3%

-2.4%

0.7%

5.4%

YoY

-0.6%…Remunerations

2.5%

15.4%

-5.1%

6.7%

9M09/

9M08

Admin costs

Total Operating Costs

Depreciation

Staff costs

(EUR million)


Quarterly operating costs: domestic and international

7.6%

2.4%

18.5%

-10.8%

1.7%

2.7%

1.8%

0.4%

0.0%

-0.8%

64.7%

25.0%

-4.7%

-1.7%

-2.0%

1.4%

QoQ

51.0

4.0

19.4

-

1.6

0.8

25.2

27.6

211.0

18.0

79.7

1.0

15.2

12.1

21.1

75.9

113.2

3Q09

250.5%98.4%12.712.76.26.12.32.3… Amort. of Actuarial Differences

8.8%14.7%1.81.61.61.41.61.6…Other

49.0

4.0

16.7

-

1.0

25.7

28.3

205.8

17.6

78.3

1.0

13.5

20.3

75.0

109.8

1Q09

------… Long term service benefits

-38.4%9.8%0.61.30.92.50.8…Long term service benefits

-6.3%3.0%12.215.014.815.013.9…Other

110.5%36.4%21.514.915.57.07.4…Post Employment Benefits, ow

46.6

2.8

18.0

0.5

23.8

25.8

194.8

14.9

80.9

76.9

99.0

1Q08

47.7

3.0

16.7

0.5

25.9

28.0

210.7

15.8

89.8

80.5

105.1

2Q08

4.5%12.3%24.522.422.4…Remunerations

5.8%12.6%27.125.124.5Staff Costs

International

47.5

3.9

16.4

0.8

210.1

18.0

80.4

77.4

111.6

2Q09

46.4

3.7

17.6

1.2

200.0

17.4

78.1

73.2

104.5

4Q08

44.0

3.7

15.8

0.7

211.5

16.6

85.8

77.9

109.1

3Q08

15.9%

7.9%

23.0%

16.3%

-0.2%

8.4%

-7.1%

-2.6%

3.8%

YoY

-3.0%…Remunerations

6.6%

25.2%

4.0%

53.8%

1.6%

13.3%

-7.0%

6.9%

9M09/9M08

International Operating Costs

Admin costs

Depreciation

Admin costs

…Post Employment Benefits

Domestic Operating CostsDepreciation

Staff costs

Domestic (EUR million)


Quarterly Provisions

462.7

46.9

37.5

156 bp

116.5

89 bp

261.8

103 bp

378.3

9M09

-34.4%

5.7%

1.4%

-

-17.85

-

-51.5%

-

-41.3%

QoQ

--177 bp215 bp75 bp147 bp86 bp67 bp28 bpcost of risk (bp)

62.5%1.7%60.0123.877.938.259.051.650.6Domestic

--61 bp128 bp81 bp40 bp62 bp55 bp55 bpcost of risk (bp)

194.8%122.2%44.253.718.735.619.914.15.5International

137.6

18.5

14.9

85 bp

104.2

3Q09

34.4%95.0%14.77.930.27.618.02.2…Securities

115.4

10.9

80 bp

96.6

1Q09

10.9%442.0%17.51.03.428.99.9…Other

--147 bp61 bp67 bp57 bp51 bp…cost of risk (bp)

68.2

56.1

1Q08

112.7

65.7

2Q08

209.7

177.5

2Q09

105.0

73.8

4Q08

89.9

78.9

3Q08

53.0%

32.1%

YoY

88.5%…Credit

70.8%

9M09/

9M08

Total Provisions

(EUR million)


Quarterly balance sheet: assets

80,718

4,724

88

57

775

122

670

-

326

385

-

2,568

(1,426)

47,606

7,701

7,779

2,122

3,856

668

1,271

3Q09

81,428

3,094

142

57

672

123

645

-

252

487

-

2,670

(1,365)

47,275

11,185

7,387

1,605

4,025

574

1,233

2Q09

8.5%

72.9%

40.4%

210.2%

42.6%

21.8%

22.7%

-

168.6%

28.1%

-

393.2%

28.8%

3.3%

-15.5%

13.7%

-0.6%

6.8%

-1.4%

23.1%

YoY

-0.9%76,64175,18774,42172,56467,892Total Assets

52.7%3,4183,1212,7322,9892,141Other assets

-38.2%159142632725Deferred income tax assets

-0.5%5753181919Current income tax assets

15.3%636645543559583Investments in associated companies

-1.5%1231241009590Intangible assets

3.8%654638546574550Other tangible assets

------Investment property

29.4%172148121380302Non current assets held for sale

-21.0%632936301228448Hedging derivatives

------Financial Assets with repurchase agreements

-3.8%2,4852,160521539495Held to maturity investments

4.8%(1,215)( 1,148)( 1,111)(1,080) (1,033)(Provisions)

0.7%47,06347,04946,06844,87943,385Loans and advances to customers

-31.2%6,6484,5329,1118,8846,466Loans and advances to banks

5.3%7,1487,0946,8415,8215,741Financial assets available for sale

32.2%2,0722,1622,1342,5231,921Financial assets at fair value through P&L

-4.2%3,9063,6903,6113,5594,028Financial assets held for trading

16.3%531664677525507Deposits with banks

3.1%9372,0271,0339631,192Cash and deposits at central banks

QoQ 1Q094Q083Q082Q081Q08(Eur mn)


Quarterly balance sheet: liabilities

74,103

2,147

2,702

-

88

75

149

63

286

-

31,571

24,416

7,658

-

1,628

1,071

3,319

3Q09

71,979

1,488

2,550

-

70

85

132

13

333

-

26,246

25,328

11,083

-

1,976

24

2,673

1Q09

6.5%

61.4%

6.2%

-

205.3%

58.5%

-9.2%

394.7%

-13.8%

-

12.2%

5.6%

-6.8%

-

-11.4%

n.m.

-13.4%

YoY

-1.5%75,19870,53469,58967,65862,770Total Liabilities

58.6%1,3541,3161,3301,7801,575Other liabilities

1.4%2,6642,8292,5452,0882,090Other subordinated loans

------Instruments representing capital

11.6%79372952123Deferred income tax liabilities

62.2%4690476775Current income tax liabilities

2.7%145131164165142Provisions

51.3%421313250233Non current liabilities held for sale

-7.9%310727332396386Hedging derivatives

------Financial liabilities associated to transferred assets

4.4%30,23024,59728,12627,33025,858Debt securities

-2.9%25,15626,38723,11723,91722,069Due to customers

-26.0%10,3507,6828,2157,3137,187Deposits from banks

------Financial assets at fair value through P&L

2.7%1,5841,9141,8371,4191,526Financial liabilities held for trading

3.5%1,0351,4411621560(ow, European Central Banks System)

2.5%3,2394,8103,8342,8801,507Amounts owed to central banks

QoQ2Q094Q083Q082Q081Q08(Eur mn)


Quarterly balance sheet: equity

6,615

191

-

361

675

227

600

(26)

-

1,086

3,500

6,063

3Q09

4,662

171

-

101

941

( 291)

600

( 29)

-

669

2,500

4,389

1Q09

36.9%

24.0%

-

7.8%

8.7%

n.m.

0.0%

-13.8%

-

62.4%

40.0%

39.6%

YoY

6.2%6,2294,6534,8324,9065,122Total Equity

2.4%187154154147137Minority interests

------Anticipated dividends (prefshares)

46.5%246402335264146Net Profit for the period / year

1.4%666624621615884Other reserves and retained earnings

n.m.(31)( 266)( 17)141222Fair value reserve

0.0%600600600600600Preference shares

0.0%(26)( 30)( 30)( 30)( 35)Treasury stock

------Other capital instruments

0.0%1,086669669669669Share premium

0.0%3,5002,5002,5002,5002,500Share capital

4.6%5,7964,0974,3434,4954,839Shareholders' Equity

QoQ2Q094Q083Q082Q081Q08(Eur mn)


Quarterly loan portfolio (including securitised)

19%

9,975

42,562

52,537

9,141

26,023

35,164

312

2,458

2,770

523

14,081

14,604

17,374

3Q09

19%

9,903

42,053

51,956

9,032

25,508

34,540

321

2,427

2,748

550

14,118

14,668

17,416

1Q09

19%

9,996

42,232

52,228

9,139

25,803

34,942

318

2,397

2,715

539

14,032

14,571

17,286

2Q09

19%

9,703

42,261

51,964

8,826

25,549

34,375

324

2,478

2,802

553

14,234

14,787

17,589

4Q08

18%

9,226

41,829

51,055

8,331

25,130

33,461

341

2,407

2,748

554

14,293

14,847

17,594

3Q08

17%

8,487

41,460

49,946

7,601

24,756

32,357

348

2,407

2,755

538

14,297

14,834

17,589

2Q08

-0.2%

0.8%

0.6%

0.0%

0.9%

0.6%

-1.9%

2.5%

2.0%

-3.1%

0.4%

0.2%

0.5%

QoQ

8.1%

1.8%

2.9%

9.7%

3.6%

5.1%

-8.5%

2.1%

0.8%

-5.7%

-1.5%

-1.6%

-1.3%

YoY

16%

7,862

40,661

48,523

7,001

24,056

31,056

332

2,421

2,753

530

14,184

14,714

17,467

1Q08

… International

… Domestic

Loan portfolio

… International

% 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 asset quality indicators

(1) According to Bank of Portugal rules (Circular Letter N. 99/09/2003)

1.56%1.42%1.20%1.09%1.05%1.08%1.02%Overdue Loans >90 days / Gross Loans

186.4%197.9%209.5%219.0%223.4%217.3%228.9%Coverage of Overdue Loans > 90 days

2.04%1.95%1.64%1.38%1.38%1.34%1.27%Corporates (>30d)

3.58%3.60%3.60%3.13%3.24%3.18%3.02%Consumer (>30d)

0.71%0.74%0.72%0.68%0.68%0.67%0.65%Mortgage (>30d)

293 bp302 bp99 bp212 bp133 bp44 bp37 bpSpain

61 bp128 bp81 bp40 bp62 bp55 bp55 bp… Domestic

177 bp215 bp75 bp147 bp86 bp67 bp28 bp… International

85 bp147 bp80 bp61 bp67 bp57 bp51 bpQoQ Provision Charge

159.4%158.7%163.0%180.2%178.2%181.4%189.0%Coverage of Overdue Loans >30 days

2.81%

134.3%

2.09%

1.77%

Jun 09

2.35%

152.8%

1.54%

1.32%

Sep 08

2.38%

150.7%

1.58%

1.32%

Dec 08

2.33%

162.3%

1.43%

1.23%

Mar 08

2.52%

144.8%

1.74%

1.54%

Mar 09

2.35%

152.6%

1.54%

1.30%

Jun 08

2.23%Overdue and Doubtful Loans Ratio (BoP) (1)

130.6%Coverage of Overdue and Doubtful Loans (BoP)

2.91%Provisions for Credit / Total Gross Loans

1.82%Overdue Loans >30 days / Gross Loans

Sep 09(EUR million)



274.1

1,364.6

33.9

1,015.8

689.6

860.0

48,640

1H09

177.6

314.6

6.8

364.9

267.4

270.9

1,853

EUR mn

YoY Chg

88.5%

28.3%

13.2%

50.2%

53.8%

43.5%

3.9%

%

378.3

1,425.7

58.5

1,091.9

764.8

894.4

49,032

9M09

QoQ Chg

n.m.

61.1

24.6

76.1

75.3

34.4

392.0

EUR mn

n.m.

4.5%

72.6%

7.5%

10.9%

4.0%

0.8%

%

51.7Write Offs

200.7Credit provisions (P&L)

1,111.1Credit provisions (Balance)

727.1Overdue and Doubtful Loans (BoP) (1)

497.4Overdue Loans (over 90 days)

623.5Overdue Loans (over 30 days)

47,179Gross Loans (On-BS)

9M08(EUR million)

Asset Quality Indicators



Quarterly & accumulated credit provision charge & net new entries

0.441.081.070.370.550.520.41Net new entries as % Performing Loans (quarter)

261.8201.877.9199.3161.1102.150.6… Domestic

116.572.418.775.139.519.65.5… International

71.841.710.242.720.57.53.3ow Spain



233 bp200 bp99 bp102 bp70 bp40 bp37 bpow Spain



293 bp302 bp99 bp212 bp133 bp44 bp37 bpow Spain

30.131.510.222.213.04.23.3ow Spain

60.0123.877.938.259.051.650.6… Domestic

44.353.718.735.619.914.15.5… International

1.08

113 bp

274.1

147 bp

177.5

2Q09

1.07

80 bp

96.6

80 bp

96.6

1Q09

0.48

57 bp

200.7

67 bp

78.9

3Q08

0.45

57 bp

274.4

61 bp

73.7

4Q08

0.86

103 bp

378.3

85 bp

104.2

3Q09

0.46

53 bp

121.8

57 bp

65.7

2Q08

0.41

51 bp

56.1

51 bp

56.1

1Q08

Net new entries as % Performing Loans (accum.)

As % Loan Portfolio (bp)

P&L Credit Provisions Accumulated

As % Loan Portfolio (bp)

P&L Credit Provisions

(EUR million; % annualised)


Quarterly customer funds

31%29%26%22%29%29%28%% total

0.5%-8.6%8,0057,9637,1248,8748,7609,6638,398Sight

-4.5%14.3%16,41117,19318,20417,51314,35714,25413,671Term

18,425

40,939

59,364

19,260

40,104

6,354

9,334

24,416

33,750

3Q09

14,643

40,696

55,339

16,923

38,416

7,144

5,944

25,328

31,272

1Q09

16,892

41,486

58,378

18,326

40,052

7,090

7,806

25,156

32,962

2Q09

-2.9%5.6%26,38723,11723,91722,069… Deposits

19.6%25.9%3,5237,4136,9916,447… Certificates of Deposits

12,504

43,193

55,697

17,508

38,189

8,279

29,910

4Q08

16,037

38,989

55,031

17,495

37,536

7,006

30,530

3Q08

16,329

39,799

56,128

18,238

37,890

6,981

30,908

2Q08

13.4%

5.6%

7.9%

10.1%

6.9%

-9,3%

10.6%

YoY

14,801

38,292

53,093

18,231

34,862

6,346

28,516

1Q08

43.5%

-4.5%

6.6%

10.0%

5.0%

-23.3%

12.8%

QoQ

Total Customer Funds

… International

… Domestic

Off-BS Funds

On-BS Customer Funds

Debt Securities

Deposits (1)

(EUR million)

(1) Includes Client deposits and certificates of deposits


Quarterly off-BS customer funds

3,350

15,910

19,260

981

3,249

4,230

5,454

138

2,506

2,644

69

1,194

1,263

2,162

3,507

5,669

3Q09

3,010

13,913

16,923

884

2,565

3,449

5,077

129

2,363

2,492

75

1,023

1,098

1,922

2,885

4,807

1Q09

3,102

15,224

18,326

929

3,351

4,280

5,202

136

2,384

2,520

71

1,135

1,206

1,966

3,152

5,118

2Q09

5.2%3.8%1,0711,1501,2371,265… Domestic

-2.8%-71---… International

2,977

14,531

17,508

877

2,943

3,820

5,190

132

2,476

2,608

1,142

1,897

2,851

4,748

4Q08

3,180

14,315

17,495

1,021

3,052

4,073

4,982

125

2,130

2,255

1,150

2,034

3,001

5,035

3Q08

3,087

15,151

18,238

984

3,116

4,100

5,128

120

2,372

2,492

1,237

1,983

3,298

5,281

2Q08

5.3%

11.1%

10.1%

-3.9%

6.5%

3.9%

9.5%

10.4%

17.7%

17.3%

9.8%

6.3%

16.9%

12.6%

YoY

3,200

15,031

18,231

994

3,462

4,456

5,060

122

2,413

2,535

1,265

2,084

2,831

4,915

1Q08

4.5%… Domestic

8.0%

5.1%

5.6%

-3.0%

-1.2%

4.8%

1.5%

5.1%

4.9%

4.7%

10.0%

11.3%

10.8%

QoQ

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

Potential Capital Gains (Losses) EvolutionAt the end 9M09

58.2

7.4

-31.8

-64.8

147.4

2Q09

291.0

6.4

-15.7

2.8

297.5

3Q09

-189.2-179.5838.81,320.8Total

-5.2-20.5661.72.52%560.9Bradesco

0.25%

5.83%

2.35%

% AFS

8.0

-91.2

-75.8

2008

8.6

76.0

70.5

2007

6.3

-105.4

-84.9

1Q09

2.5BMCE491.1Portugal Telecom266.3EDP

Acquis. Value(EUR million)


Quarterly solvency ratios

12.2%

8.8%

8.3%

11%

600

1,979

5,261

4,922

7,230

3,146

3,742

52,600

59,488

Jun 09(IRB)

11.9%

8.6%

7.8%

12%

600

1,946

5,101

4,615

7,038

3,146

3,159

52,790

59,095

Mar 09(IRB PF)

9.9%

6.6%

5.8%

15%

600

1,946

3,901

3,415

5,838

3,146

3,159

52,790

59,095

Mar 09(IRB)(IRB)(Std)

11.3%

7.1%

6.1%

15%

600

2,336

3,946

3,412

6,273

2,840

2,878

49,987

55,705

10.5%

6.6%

5.7%

15%

600

2,337

3,948

3,412

6,277

3,042

2,878

53,791

59,711

Dec 08

12.2%

8.8%

8.2%

11%

600

2,086

5,450

5,074

7,536

3,146

3,712

55,168

62,026

Sep 09(IRB)

9.9%

6.3%

5.5%

15%

600

2,202

3,883

3,345

6,077

3,042

3,707

54,401

61,150

Sep 08(Std)

9.7%

6.6%

5.7%

15%

600

1,833

3,889

3,357

5,716

3,042

4,408

51,733

59,183

Jun 08(Std)

10.1%

6.8%

6.0%

15%

600

1,888

3,943

3,434

5,825

3,042

5,825

48,676

57,543

Mar 08(Std)

As % Tier I

Banking Book

Trading Book

Oper. Risk

Core Tier I

Tier I (%)

Total Capital

Tier I

Other

Core Tier I (%)

Total (%)

Pref. Shares

RWA (BoP)

(EUR million)

Note: BIS II IRB corresponds to calculations based on IRB Foundation for credit risk and standardised approach for operational risk


Appendix II: Macro Data


Markets Environment: Aggressive fiscal and monetary stimuli are inducing stronger global demand, which in turn is translating into a recovery in international trade flows.

Indicator of Manufacturing Activity.

-14-12-10-8-6-4-20246

1992 1994 1996 1998 2000 2002 2004 2006 2008

%

Volume of international trade flows(% q-o-q growth, 3-month moving average).

30

35

40

45

50

55

60

65

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Inde

x (Po

ints)

USA

Euro Zone

Indicator of Manufacturing Activity.

30

35

40

45

50

55

60

65

Jun.2007

Out.2007

Fev.2008

Jun.2008

Out.2008

Fev.2009

Jun.2009

Inde

x (P

oints

)

ChinaBrazil

Russia

India

Oil Price (Brent), USD vs. EUR/barrel.

0

20

40

60

80

100

120

140

160

2001 2002 2003 2004 2005 2006 2007 2008 2009

USD;

EUR USD

EUR

78

52

Source: Bloomberg


Markets Environment: Financial stabilisation and improved growth prospects with low inflationary pressures have resulted in stronger confidence in financial markets.

10- year Government Bond Yield.

3-month Euribor and USD Libor (%) Credit Spreads (Cash vs. CDS).

Selected Stock Indices.

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

Jan. Abr. Jul. Out. Jan. Abr. Jul. Out. Jan. Abr. Jul. Out.

%

USA

Euro Zone

2007 2008 2009

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2005 2006 2007 2008 2009

%

3-month Euribor

3-month Libor

0

50

100

150

200

250

300

350

400

Jan. 2007 Jul. 2007 Jan. 2008 Jul. 2008 Jan. 2009 Jul. 2009

(bps)

iBoxx EUR Financials

iTRAXX Financials Senior 5yr

30

50

70

90

110

130

150

170

Jun. 2007 Out. 2007 Fev. 2008 Jun. 2008 Out. 2008 Fev. 2009 Jun. 2009 Out. 2009

Eurostoxx 50

01 Ju

n. 2

007

= 10

0

S&P 500

Bovespa

Shanghai Composite

Sensex (India)

Source: Bloomberg & Reuters


Portugal: Return to positive growth already in 2Q2009 (0.3% q-o-q). A gradual export-led recovery is on the way, leading to improvements in confidence levels. Portugal’s unemployment rate remains below the Euro Area average.

PSI-20 Stock Index

-40

-30

-20

-10

0

10

20

30

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Inde

x (Po

ints)

Manufacturing

Services

Confidence indicators in manufacturing and services

-2.0-1.5-1.0-0.50.00.51.01.52.0

2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Perc

enta

ge P

oints

Contribution of net external demand to GDP y-o-y growth (p.p.)

Exports growth (y-o-y, July 2009) :Angola: 16.8%Maghreb: 15.5%

40

50

60

70

80

90

100

Jan.2008

Abr.2008

Jul.2008

Out.2008

Jan.2009

Abr.2009

Jul.2009

1 Ja

n. 2

008

= 10

0

Eurostoxx 50

PSI 20

3

4

5

6

7

8

9

10

11

1995 1997 1999 2001 2003 2005 2007 2009

%

9.1

9.6Euro Area

Portugal

Source: INE, European Commission & Bloomberg

Unemployment rate (% labour force)


Sources: INE, Bank of Portugal, ES Research.

Portugal Forecasts 2009-2010

Annual real growth rates (%), except where indicated.

10.09.17.68.07.77.6Unemployment (% of Labour Force)

-9.6-8.3-10.5-8.1-9.3-8.3Current & Capital Account Balance (% GDP)

81.574.566.363.564.763.6Public Debt (% GDP)

-6.7-5.9-2.6-2.6-3.9-6.1Budget Balance (% GDP)

1.5-0.52.62.53.12.3Inflation (%)

0.7-9.92.66.15.13.5Imports

2.3-11.7-0.47.88.72.0Exports

-1.0-12.90.23.4-0.3-1.5Investment

0.30.80.60.0-1.43.2Public Consumption

0.3-0.81.71.61.92.0Private Consumption

0.5-3.00.01.91.40.9GDP

2010F2009F2008200720062005


-5.0

-3.0

-1.0

1.0

3.0

5.0

7.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

%

2025303540455055606570

Index (Points)

GDP (LHS)

PMI Services (RHS)

PMI Manufacturing (RHS)

-20

-15

-10

-5

0

5

10

15

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

%

Private consumption

Investment

Exports

-5

-3

-1

1

3

5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

%

y-o-y

q-o-q

Private consumption, exports and investment (%, y-o-y).

PMI Services, PMI Manufacturing and GDP (%, y-o-y).

GDP growth (%).

6

8

10

12

14

16

18

20

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

% o

f labo

ur fo

rce

17.9

Quarterly unemployment rate (% of labour force)

Spain: Domestic demand adjustments are still penalising growth and should delay a full recovery. But a stabilising trend is already visible in some activity indicators.

Source: INE & Bloomberg


Sources: INE, Bank of Spain, ES Research.

Spain Forecasts 2009-2010

Annual real growth rates (%), except where indicated.


-8.0-7.5-8.7-8.1-8.4-6.5Current & Capital Account Balance (% GDP)

63.051.039.536.239.643.0Public Debt (% GDP)

-5.4-9.5-3.42.22.01.0Budget Deficit (% GDP)

1.5-0.14.12.83.43.4Inflation (%)

-3.0-19.8-2.56.210.37.7Imports

2.0-16.70.74.96.72.6Exports

-9.0-14.2-3.05.37.17.0Investment

2.83.45.34.94.65.5Public Consumption

-0.5-3.80.13.43.94.2Private Consumption

-0.8-3.71.23.73.93.6GDP

2010F2009F2008200720062005


58.0

120.0

150.0 150.0 150.0 150.0

95.0 95.0

14.0 19.6 19.630.0

020406080

100120140160

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Oct.

%

0

20

40

60

80

100

120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/

AOA

and

USD/

AOA

128.1

85.1EUR/AOA

USD/AOA

Oil production (mb/day) External reserves (USD million)

Kwanza exchange rate Central Bank rediscount interest rate (%)

0

5

10

15

20

25

Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep.

12.8

20.1

USD

billio

ns

2008 2009

1.4

1.5

1.6

1.7

1.8

1.9

Jan.2007



Apr. Jul.

mb/

d

1.9

Angola: Recovery in oil output and resilient activity in non-energy sectors are contributing to a reacceleration in growth. Scarcer USD liquidity in 1H2009 has forced a Kwanza depreciation and higher interest rates. External reserves have now stabilised.

Source: BNA, OPEC & Bloomberg


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

Angola Forecasts 2009-2010

25.030.019.619.614.095.0BNA Rediscount Rate (%), end of period

85.079.475.177.180.487.2Exchange Rate (USD/KZ), annual average

-7.2-10.812.411.514.87.1Budget Balance (% GDP)

0.1-8.121.215.925.216.8Current Account Balance (% GDP)

13.012.512.512.213.323.0Inflation (%)

5,3675,0574,9613,6292,8471,988GDP per capita (USD, current prices)

10.05.014.820.318.620.6GDP (real growth rate, %)

2010F2009F2008200720062005


Brazil: Rapid return to growth, based on strong exports and private consumption. Higher propensity to risk and the search for higher returns at the global level have translated into a stronger Real. Selic rate with a final cut in 3Q2009, to 8.75%.

GDP growth (%)

SELIC interest rate (%)

USD/BRL and Sovereign CDS spread

External Accounts

-4

-2

0

2

4

6

8

2002 2003 2004 2005 2006 2007 2008 2009

%

Y-o-Y

Q-o-Q

8

10

12

14

16

18

20

22

24

26

28

2002 2003 2004 2005 2006 2007 2008 2009

%

8.75%

0

500

1000

1500

2000

2500

3000

3500

4000

2001 2002 2003 2004 2005 2006 2007 2008 2009

CDS

Spre

ad

1.5

2.0

2.5

3.0

3.5

4.0USD/BRL

USD/BRL (RHS)Brazil CDS

5Y(LHS)

Source: IBGE, BACEN & Bloomberg


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

Brazil Forecasts 2009-2010

8.758.7513.7511.2513.2518.00SELIC Interest Rate (%, End of Period)

1.922.021.841.952.182.43Exchange Rate (USD/BRL), annual average

-1.6-1.0-1.80.11.31.8Current Account Balance (% GDP)


41.543.938.843.944.046.5Public Debt (% GDP)

3.32.04.13.93.84.8Primary Budget Balance (% GDP)

4.44.45.94.53.15.7Inflation (%)

4.00.55.15.74.03.2GDP (real growth rate, %)

2010F2009F2008200720062005


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

NUMBER OF SHARES: 1,167 millionNOMINAL VALUE: 3 Euros per shareSHARE CAPITAL: EUR 3.5 bnSECTOR: Financial Services: BankingINDEX MEMBERSHIP: PSI20

Euronext 100Dow Jones EurostoxxDow Jones Stoxx BanksFTSE4GOODFTSE All World Developed

LISTING: NYSE EuronextBLOOMBERG: BES PLREUTERS: BES.LSISIN CODE: PTBES0AM0007RATINGS: Moody’s: A1 / Stable / P-1

Fitch: A+ / Stable / F1 S&P: A / Negative / A-1

9m09 results presentationweb3.cmvm.pt/english/sdi/emitentes/docs/fr25715.pdf · 2020-05-20 · 9m09...

Documents