FY09 Results Presentationweb3.cmvm.pt/sdi2004/emitentes/docs/FR26737.pdf · FY09 Results...

FY09 Results Presentation(Un-audited Figures)

28th January 2010 1FY09 Results Presentation

Agenda

I. FY09 Highlights

II. Recent Market & Macro Developments

III. FY09 Consolidated Results

IV. Segment Reporting & Commercial Activity

V. Customer Credit and Funds

VI. Funding & Liquidity, AFS, Pension Fund & Solvency

VII. Wrap Up


I. Main figures

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

(2) Basel II ratios as of FY09 (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.

-46.7-%Cost / Income ex-extraordinary

+1.2 pp8.37.1%Tier I

Solvency: Basel II (2)

0.10 pp0.660.56%ROA

- 0.2 pp11.111.3%Total

+1.9 pp8.06.1%Core Tier I

-3.2pp

-9.9pp

8.8%

3.8%

9.5%

7.8%

0.2 pp

29.8%

YoY

58.2

53.0

55,698

51,964

75,187

98,825

9.8

402.3

2008

%

%

Eur mn

Eur mn

Eur mn

Eur mn

%

Eur mn

55.0Cost / Income (ex Markets & Others)

43.1Cost / Income

60,595Total Customer Funds

53,958Loans to Customers (incl. securitisation)

82,297Total Net Assets

106,513Total Assets under Management (1)

10.0ROE

522.1Net Income

2009


I. 2009 Results highlights• Net income reached at Eur 522.1mn representing a growth of 29.8% YoY, a ROE of 10.0% and a ROA of 0.66%. The 2009 FY

results mark the 2nd highest result in the history of BES and are a sign of strength in a still challenging environment, subdued by low economic growth, high unemployment and historically low interest rates. Excluding the non recurrent factors net income reached Eur462.1mn, still implying a healthy growth of 14.9%.

• International area was once again critical to this performance with net income at Eur 179.3mn, growing by 25.1% representing 39% of recurrent net profit (34.3% of total results) and confirming the merits of BES strategic positioning in the Southern Atlantic axis. Worth mention the 24% disposal in BES Angola for USD 375 mn (Dec 2010) that will reinforce an already strong partnership with local players.

• NII grew 10.6% YoY to Eur 1,200.9mn and, albeit decelerating versus recent quarters, still grew double digit in 2009. The effort to capture on-balance sheet customer funds in the 4Q09 (evident by the Eur 1.6bn QoQ growth of term deposits), the still fading interest rate mismatch effect and the lag effect between new wholesale funding captured in 2009 (at higher cost) and the credit growth in 2009 (mostly in 4Q09), are among the main reasons behind 4Q09 NII performance.

• Fees & Commissions posted a very strong performance growing 12.8% YoY backed by a pick up in activity namely in trade finance & export related fees (+62.7%), commissions on loans (+33.2%), guarantees (+26.7%), bancassurance (+29.1%) and corporate & project finance (+23.7%).

• Capital Markets maintained the usual resilience, contributing with Eur 389mn to banking income (15.9% weight) driven by results from interest rate and equity trading.

• Operating costs grew 5.4% YoY influenced by the expansion in international area (+19.9% YoY) and by post employment benefits that grew 80.4% YoY, on the back of the increase in amortisation of actuarial differences (+192.9% YoY from Eur 16.5mn in 2008 to Eur 49.5mn in 2009). Excluding post employment benefits, operating costs grew only 1.7% YoY reflecting the cost reduction effort brought forward by the Bank during 2009. Very strong efficiency levels with cost to income at 43.1% and excluding extraordinary gain of BES Angola stake sale at 46.7%.

• Credit Provisions reflected the poor economic environment on one side, but also the conservative manner with which BES manages credit risk. The 107bp of cost of risk includes Eur 106mn of extra provisions for credit charged during the year (40mn in 2Q09 and 66mn in 4Q09). Without this extra reinforcement cost of risk would have been 86bp for FY09. The credit provision reserve was therefore further enhanced to 3.07%.


I. 2009 Results highlights

• Credit quality showed some encouraging signs in 4Q09 with net new entries reducing significantly in the past two quarters (net

new NPL entries in the quarter were an annualised 14bp which compares to 49bp in 3Q09 and 108bp in the 2Q09). NPL’s over 90

days at 1.60% with a coverage of 192%.

• In terms of wholesale funding, BES was able to tap the market successfully several times during 2009, not only guaranteeing the

MLT refinancing needs for 2009 well in advance of the year end, but (and considering the latest Eur 750mn issue at the beginning

of 2010) also guaranteeing a comfortable position for meeting 2010 needs of Eur 5.1bn which are mostly covered. Still on the

liquidity front is worth highlighting the fact that BES ended the year with a short term cash surplus of Eur 1.7bn.

• The Pension Fund had a good performance, reducing the actuarial differences outside the corridor to Eur 619mn from Eur

765mn at the end of 2008. The Eur 146mn reduction will have a positive impact in next year amortisation of actuarial differences.

• The main equity stakes in AFS portfolio continued to recover. At the end of 2009 gross potential capital gains reached Eur

391mn recovering Eur 571mn versus last year gross potential loss of Eur 180mn. The good market performance by Bradesco and

PT during the year were the main drivers for this recovery. Currently potential capital gains are only accounted 45%, gross of taxes

to Tier II.

• Core Tier I ended the year at 8.0%, thus confirming BES as one of the most well capitalised Banks in Iberia.

• Board of Directors will propose to the AGM a distribution of a dividend of 0.14 Euros per share (2008 comparable 0.10

Euros per share), which represents a payout of 35.4% of recurrent earnings (20% in 2008) and a dividend yield at current prices of

3.2% and 3.1% at year-end prices, which is above the current market consensus for European banks.


Agenda

I. FY09 Highlights






VII. Wrap Up


II. Markets Environment

Credit Spreads (Financials)Selected Stock Indices.

Source: Bloomberg & Reuters

Global economic recovery on the way, on the back of aggressive policy stimulus and with emerging markets showing strong growth. Stronger growth prospects with low inflationary

pressures have resulted in stronger confidence in financial markets.

30

50

70

90

110

130

150

170

Jun.2007

Set.2007

Dez.2007

Mar.2008

Jun.2008

Set.2008

Dez.2008

Mar.2009

Jun.2009

Set.2009

Dez.2009

Eurostoxx 50

01 Ju

n. 2

007

= 10

0

S&P 500

Bovespa

Shanghai Composite

Sensex (India)

0

50

100

150

200

250

Jan. 2007 Jul. 2007 Jan. 2008 Jul. 2008 Jan. 2009 Jul. 2009 Jan. 2010

(bps)

iTRAXX Financials Senior 5yr


II. Macro Portugal: Highlights

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

Source: INE, European Commission & Bloomberg

GDP Evolution

Financial sector stability and no significant housing corrections allowed for an early recovery in GDP growth, with an improvement in exports. The “Greece effect” has hurt sovereign ratings, but public debt affordability remains in line with the main Euro area

economies.

Interest Payments as a percentage of annual tax revenues, %

02468

101214

Finl

and

Spai

n

Neth

erla

nds

Fran

ce

Austr

ia

Ger

man

y

Portu

gal

Irelan

d

Belg

ium

Italy

Gree

ce

Aaa countries Non-Aaa countries

-4.0-3.0-2.0-1.00.0

1.02.03.04.05.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

%

Q-o-Q

Y-o-Y

Public Debt Affordability


GDP Evolution(%, y-o-y, qoq).

PMI Services & Manufacturing Index

II. Macro Spain: Highlights

Source: INE & Bloomberg

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

-5

-3

-1

1

3

5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

%

y-o-y

q-o-q

25

30

35

40

45

50

55

60

65

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Inde

x (Po

ints)

PMI Services

PMI Manufacturing


GDP Evolution (% yoy)

Oil Production (mn/day)

II. Macro Angola: Highlights

Source: BNA, OPEC & Bloomberg

Lower oil revenues in 1H2009 have contributed to a slowdown in activity and have forced a kwanza depreciation. But the recovery in oil output, the resilience of non energy sectors, and the environment of macroeconomic stability are already contributing to a reacceleration in growth.

1.4

1.5

1.6

1.7

1.8

1.9

Jan.2007

Apr. Jul. Oct. Jan.2008


Apr. Jul. Oct.

mb/

d

1.9

10.0

2.0

13.2

20.318.6

20.6

11.2

3.3

13.0 14.8

20.1

27.5

14.1

9.0

10.3

10.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2003 2004 2005 2006 2007 2008F 2009F 2010F

%

Non-oil sector

GDP


II. Macro Brazil: Highlights

Retail Sales & Industrial Production(% yoy)

GDP Evolution(% yoy)

Source: IBGE, BACEN & Bloomberg

Domestic demand strength is fuelling a recovery and should lead to GDP growth around 5% in 2010. Sound external accounts and strong capital inflows have led to an appreciation in the Real.

-4

-2

0

2

4

6

8

2002 2003 2004 2005 2006 2007 2008 2009

%

Y-o-Y

Q-o-Q

-20

-15

-10

-5

0

5

10

15

20

2001 2002 2003 2004 2005 2006 2007 2008 2009

%

Industrial Production

Retail sales


Agenda

I. FY09 Highlights






VII. Wrap Up


161.3

21.4

31.8

214.5

246.1

460.6

281.3

741.9

182.3

108.6

451.0

200.7

250.4

4Q09

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

29.8%

112.9%

31.5%

34.1%

88.6%

57.2%

5.4%

29.7%

n.m.

70.0%

11.4%

12.8%

10.6%

YoY

40.8%522.1402.3Net Income=

n.m.141.6-63.1Other results+

-

-

=

-

=

-

=

+

=

+

+

114.0%53.024.9Minority Interests

28.2%109.883.5Taxes

43.6%684.9510.7Income Bef. Taxes and Minorities

78.9%708.8375.8Net Provisions

60.5%1,393.7886.5Net Operating Income

7.4%1,055.71,001.6Operating Costs

35.1%2,449.41,888.1Banking Income

-389.0228.8Capital Markets Results

-4.3%1,918.81,722.4Commercial Banking Income

17.3%717.9636.2Fees and Commissions

-16.6%1,200.91,086.2Net Interest Income

QoQ20092008(EUR million)



III. FY09 Consolidated Results breakdown: Domestic vs. International

InternationalDomestic

25.2%

143.9%

-36.2%

26.6%

134.5%

55.5%

19.9%

41.0%

-

25.7%

10.2%

34.0%

YoY

179.3

47.3

21.0

247.6

167.9

415.5

221.5

637.0

147.7

489.3

150.2

339.1

2009

143.2

19.4

32.9

195.5

71.6

267.1

184.7

451.8

62.4

389.4

136.3

253.1

2008

32.3%

3.3%

75.8%

38.8%

77.8%

57.9%

2.1%

26.2%

-

7.2%

13.6%

3.4%

YoY

342.8

5.7

88.9

437.4

540.8

978.2

834.2

1,812.4

382.9

1,429.5

567.7

861.8

2009

259.1

5.5

50.6

315.2

304.2

619.4

816.9

1,436.3

103.3

1,333.0

499.9

833.1

2008

=

-

-

=

-

=

-

=

+

=

+

+

34.3%Net Income

89.3%Minority Interests

19.0%Taxes

36.1%Income Bef. Taxes and Minorities

23.7%Net Provisions

29.8%Net Operating Income

21.0%Operating Costs

26.0%Banking Income27.8%Capital Markets Results & Other

25.5%Commercial Banking Income

20.9%Fees and Commissions

28.2%Net Interest Income

% of Total (Consolid.)

(EUR million)


III. International area continued to show dynamism at the operating level with operating income growing by 55.5%

-19.7%19.7%% of consolidated

25.2%179.3143.2Total

-57.4%55.4%% of international

63.9%68.441.7UK

35.6%

22.2

79.32008

Net Income Contribution(EUR million)

34.3%

7.9

103.02009

-

-64.4%

29.8%

YoY

% consolidated

Other

Strategic Triangle

Other 2.9

UK 68.4

France/Lux 5.0

Angola89.9

Spain -14.0Brazil

27.1( ) FY08

(Eur mn)

(48.2)

(41.7)

(29.8) (1.3)

(13.2)

(9.0)

• Activity growth in Angola continues very dynamic with

banking income up by 70.9% YoY.

• Spanish operation, and in spite of significant increase in

provisions YoY (+146.9%), delivered a strong operating

performance with operating income up by 99.6% driven by

pro-active margin management and tight cost control.

• Brazil maintained the good performance on the back of

active roll in several important deals in capital markets;

• UK sound operating performance driven by Global Trade

Finance.

99.6%73.937.0Spain13.3%55.248.7Brazil70.6%294.7172.7Strategic Triangle

55.5%415.5267.1Total International

65.1%100.260.7UK

33.7

87.0

2008Operating Income(EUR million)

20.6

165.6

2009

-39.2%

90.4%

YoY

Other

Angola

Net Income Breakdown


NII FY08 PriceEffect

VolumeEffect

MixedEffect

NII FY09

III. Net interest income grew 10.6% YoY, albeit decelerating in 4Q09

(NIM

in b

p; A

ccum

ulat

ed F

igur

es)

258 253269

306315

335

300

250

176 171 170 176193 189196

177

0

50

100

150

200

250

300

350

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

95

115

135

155

175

195

NII (quarter) NIM (Accum)

375395406

423

260180 164 185

3.023.253.38

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 3Q09 4Q090.000.501.001.502.002.503.003.504.00

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

-41-39-36-47

56

10910685

-0.66-0.61-0.59-0.74

0.90

1.981.881.55

-70.0

-20.0

30.0

80.0

130.0

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

-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

1,086.2 +4.8+109.3 +0.5 1,200.9

(EUR mn)

+10.6%


III. Commissions were very strong backed by a pickup on corporate activity, impacting namely trade finance and export related fees

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

Total Fees & Commissions * Traditional & Cross Selling Fees

200.7171.0

636.2 717.9

FY08 FY09 3Q09 4Q09

138.5118.3

439.9511.9

FY08 FY09 3Q09 4Q09

13.99.9

33.0

53.7

FY08 FY09 3Q09 4Q09

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

62.252.7

196.3 206.0

FY08 FY09 3Q09 4Q09

(EUR mn)(EUR mn)

(EUR mn)(EUR mn)

12.8% 16.4%

62.7%

Bancassurance: +29.1% YoYCommissions on Loans: +33.2% YoYGuarantees: +26.7% YoY

17.3% 17.0%

40.4%

5.0%

18.0%


•Markets were supported by both stronger outlook for US and Euro Zone economies and company earnings above expectations.

• Aggressive monetary policies followed by Central Banks on a historical low interest environment, justified most of interest rate results.

• Depreciation of US Dollar against other currencies reveals a stronger correlation with risk appetite environment, in line with liquidity excess.

• Despite the outperformance of credit markets in general (credit spread and liquidity premium reduction), some specific asset classes, like ABS, continued to show some resistance.

• Performance of global equity markets on 2Q onwards explain most of the positive results achieved in this area.

108.6108.4

389.0

228.8

FY08 FY09 3Q09 4Q09

Capital Markets Results Breakdown

Capital Markets Results*

* Breakdown in appendix

(EUR mn)

262.2234.9

-65.5-37.3

167.5

89.4 389.0(EUR mn)

12.1%

15.9%

19.7%

% Bkg Income

FY08Interest Rate

Credit FX & Other

Equity Divid. FY09 Prov. FY09 net of Prov.

-73.0316.0

Interest Rate

Credit FX & Other

Equity Divid.

-144.5 -3.2

22.5

91.8 228.8

III. Capital Markets results maintained their typical resilience benefiting in 2009 from interest rate and equity trading

FY08

FY09

14.6%

-58.1170.6

Prov. FY08 net of Prov.


III. BES Vida posted a significant recovery during 2009 returning to positive results. Other results impacted by the disposal of 24% stake sale of BES Angola

n.m.6.50.3-26.9%12.817.5… Other

-30.7

-38.1

7.1

7.4

3Q09

n.m.

n.m.

n.m.

n.m.

YoY

182.3

172.9

2.9

9.4

4Q09

n.m.

n.m.

-59.2%

27.0%

QoQ

111.6-42.8Other

141.6

17.2

30.0

FY09

-63.1

-37.8

-20.3

FY08

… BES Vida

(euro mn)

Other Results

Equity accounted earnings, o.w.

Other Results Breakdown


III. Operating costs were up by 5.4% YoY reflecting the 80.4% increase in post employment benefits. Excluding this effect operating costs were up by a meagre 1.7% YoY

Administrative Costs Depreciation & Amortisation

Total Operating Costs & Cost to Income Staff Costs

262.0 281.3

1,055.71,001.6

FY08 FY09 3Q09 4Q09

148.3140.8

521.1565.9

FY09 FY09 3Q09 4Q09

21.622.0

77.987.2

FY08 FY09 3Q09 4Q09

111.499.3

402.6 402.6

FY08 FY09 3Q09 4Q09

(EUR mn)(EUR mn)

(EUR mn) (EUR mn)

8.6%

Total Staff Costs up 1.4% YoY ex Post

Employment Benefits

12.0%

7.4%

53.0% 43.1%

47.7%

Cost to Income

5.4%37.9% 5.3%

0.0% 12.2% -1.7%


III. Credit provisions ex extra reinforcement represented 86bp of gross loans in FY09 and show an encouraging decline versus 2009 highest level of 114bp* in 2Q09

Securities Provisions Other Provisions

Total Provisions Credit Provisions & Cost of Risk

104.2 161.695.6

274.4

539.9433.9

FY08 FY09 FY09ex

Extra

3Q09 4Q09 4Q09ex

Extra

246.1137.6

375.8

708.8

FY08 FY09 3Q09 4Q09

48.9

18.5

43.3

95.9

FY08 FY09 3Q09 4Q09

35.5

14.9

58.173.0

FY08 FY09 3Q09 4Q09

(EUR mn)(EUR mn)

(EUR mn) (EUR mn)

57 107 Cost of Risk bp

85 128

86

76

* 2Q09 annualised cost of risk ex extra provision of Eur 40mn recorded in that quarter


III. Overdue loans over 90 days were 1.60% covered at 192% by provisions. Annualised net new entries on a downward trend

1.77%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%

1.60%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 1Q09 2Q09 3 Q09 4Q09

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

174%

159%

123%

159%163%

180%

195%

184%

137%132%131% 132%

140%

170%

192%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 4 Q09

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%

3.07%

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

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

0.41%0.14%

0.52% 0.55%0.37%

1.07% 1.08%

0.49%

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

(quarterly annualised)


Agenda

I. FY09 Highlights






VII. Wrap Up


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

684.9

-223,5

234.1

29.4

71.0

179.3

229.9

13.0

151.6

Income before Taxes and MinoritiesFY09. Euro million

Total Group

Retail

Private Banking

Corporate and Institutional Clients

International Commercial Banking

InvestmentBanking

Asset Management

Markets & Strategic Participations

CorporateCentre

Δ YoY

-13.6%

-24.2%

-30.1%

+51.5%

+1.8%

-10.2%

…

-8.7%

+34.2%

EUR mn

593.1

36.7

506.3

477.1

229.4

54.0

552.8

2,449.4

Δ YoY

-11.8%

-18.0%

+11.5%

+47.8%

+20.5%

-0.9%

+270.7%

+29.7%

Banking IncomeFY09

Operating CostsFY09

Net ProvisionsFY09

EUR mn

415.9

23.0

60.0

157.8

105.8

24.6

45.0

223.5

1,055.7

Δ YoY

-1.0%

-4.7%

+0.1%

+13.9%

+16.5%

+12.7%

+10.5%

+8.7%

+5.4%

EUR mn

25.5

0.6

216.4

140.0

52.5

0.0

273.7

708.8

Δ YoY

-66.9%

-80.9%

…

+112.3%

+76.4%

+60.0%

+103.0%

+88.6%

DomesticCommercialBanking


IV. BES Group market share topped 21.2% at the end of 2009

21.4%

26.7%

20.4%

28.8%

13.9%

14.4%

18.5%

24.1%

26.3%

20.2%

20.1%

POSs

Trade Finance

Factoring

Leasing

Corporate Lending

Other Loans Indiv.

Mortgage

Asset Mgmt

Other Life Insurance

Pension Plans

On BS Funds

Note: On BS funds includes deposits and debt securities placed with Clients.

20.721.2

2008 2009

Average Market Share

(%)

Market Share by product


IV. Retail contribution reached Eur 152mn, backed by low impairment and a strong commercial activity, focused on client acquisition and client loyalty

Client Acquisition FY09 Retail Banking FY09 YoYRetail Banking Sales FY09

Client Involvement

Funds

Client involvement: credit and funds

Credit

TotalGroup

Inter-national

Domestic

127 11116

+2.5%

-2.1%

+7.9%

Affluent: +29.0%

• Affluent: +8.6%• Mass Market: +6.5%• Small Businesses: +7.4%

Value-added products soldThousands

FY08 FY09

698847

+22%1H09: +17% YoY2H09: +26% YoY

• Pension Plans: +21% YoY (production market share: 28.4%, rank: #1)

• Mortgages production: +2,2x in 4Q09 vis-à-vis 1Q09

• Auto Insurance: +50% YoY• Health Insurance: +11% YoY

(Thousand clients)

Acquisition in the 2H09 grew by 5% vis-à-vis 1H09


IV. In Corporate Banking the Group has a string franchise with Portuguese companies (particularly with companies with international activities). The contribution of this segment reached Eur 300mn

Middle Market FY09 YoY Wholesale Banking FY09 YoY

ClientInvol-

vement

Credit

+15.0%

+5.3%

+35.5%

ClientInvol-

vement

Funds

Credit

+4.0%

+3.4%

+7.6%

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

• Domestic Trade Finance: +140%

• Investment Banking Services: +56%

• Renting: +31%

• Life insurance: +66%

Cross Selling FY09

Funds

On-Balance Sheet Funds• Middle Market: +5.0%• Wholesale : +35.0%

Client involvement: credit and funds


IV. Investment Banking: banking income at record levels

Net IncomeBanking Income

Banking Income FY09: Eur 229mn (21.3% YoY)

International61%

Portugal39% Net

Interest Income

25%

Fees & Commissions

52%

Capital MktsResults

23%

Net Income FY09: Eur 50mn (6% YoY)

International61%Portugal

39%

Domestic market: A strong year for Fixed Income and Project Finance

• Financial Advisor and Mandated Lead Arranger (MLA) on the bid

process and financing of Eur117.5 million for the design, build, finance,

maintain and operate of the Loures Hospital Concession Project.

• MLA in the acquisition of Emparque by Cintra Aparcamientos, S.A.

(Eur 400.3m senior debt) and in the acquisition by Morgan Stanley

Infrastructure Fund / Galp of the gas distribution assets in Madrid of Gas

Natural (closing pending regulatory approval).

• Financial Advisory to Ongoing Strategy Investment in the acquisition of

up to 35% of Media Capital.

• Leadership of the Brokerage market with a strong increase in market

share (from 11.7% in 2008 to 15.9% in 2009).

International Market: Growing Activity in 4Q09• In Spain, ranked 3rd in the Brokerage market (5th in 2008) and increased its market share to 7.6% (5.6% at the end of 2008). Co-Lead Manager of AbengoaEur 300m bond issue.

• In Brazil, Joint-Lead Manager and Bookrunner of Banco Panamericano USD 200m international bond issue and Joint-Lead Manager of BNDESPAR (R$ 1,2bn) and CEMIG (R$ 2,7bn) local bond issues.

• Also in Brazil, the Bank was selected by CSN as Financial Advisor in the takeover bid for Cimpor (transaction currently in progress) and acted as MLA in the USD 1.3bn finance of two deep-water vessels (Norbe VIII and IX) to Odebrecht Oil&Gas. This transaction was considered Americas Deal of the Year by Project Finance International magazine.

• In Australia, MLA in the A$ 1,925m facility to Aquasure, for a concession to provide the Australian State of Victoria with 150 GL of desalinated water per year. This transaction was considered Asia/Pacific PPP Deal of the Year by Project Finance International magazine.

• In Canada, MLA on the C$ 306.2m Senior Secured Construction and Term Loan to design, build, finance and maintain a new 1,650 bed maximum security male detention centre.


Agenda

I. FY09 Highlights






VII. Wrap Up


V. Corporate loans continue to be the main growth driver both domestically and internationally. Acceleration of credit in the 4Q09 of Eur 1.4bn

Other Loans to Individuals Book

Corporate Loan BookLoan Portfolio

Mortgage Book

42,261 42,562 43,444

9,703 10,1549,975

FY08 9M09 FY09Domestic Portfolio International Portfolio

14,234 14,081 14,264

553 515523


25,549 26,023 26,686

8,826 9,6759,140


2,478 2,458 2,493

324 324312


YoY %

(EUR mn)

(EUR mn)

(EUR mn)

(EUR mn)

0.0% -6.9%

+2.8% +4.5%

0.2%0.6%

51,964 52,537 53,958 (+3.8% YoY) 34,375 35,163 36,362 (+5.8% YoY)

2,802 2,770 2,817 (+0.5% YoY) 14,787 14,604 14,779 (0.0% YoY)

+8.4% +9.6%


V. Customer funds were up 8.8% in 2009 driven by both on-BS and off-BS funds with the international area demonstrating a strong performance

Deposits & CD’s Transformation Ratio*

Total Customer Funds On BS Funds & Off BS Funds

42,855 40,939 41,201

12,84319,39418,425


41,47440,10438,189

19,260 19,12217,509

FY08 9M09 FY09On BS Off BS

26,38724,416 25,447

3,523

9,2779,334

FY08 9M09 FY09Deposits CD's

YoY %

1.88 1.921.95

1.97 1.881.99 1.78

1.86

1.181.191.181.231.231.231.181.24

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

Core Total

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

(EUR mn)(EUR mn)

(EUR mn)

-3.9%

+51.0% +9.2%

+8.6%

+163.3%

-3.6%

55,698 59,364 60,595 (+8.8% YoY)


Agenda

I. FY09 Highlights






VII. Wrap Up


VI. BES 2009 wholesale funding issues more than doubled MLT refinancing needs of the year

12 13 14 14

63 60 59 59

25 27 27 2721

2008 1H09 9M09 FY09Capital Customer Funds MLT Funds Treasury Gap

5.1 4.73.8

1.52.6 2.4

2009 2010 2011 2012 2013 2014 2015

Repoable Securities * Funding Activity during the quarter

Funding Structure Medium Long Term Maturity Profile

4.6 4.0 4.4

8.7 9.0 9.3

2008 3Q09 2009

ECB eligibleTotal

(EUR bn)

(EUR bn)

(%)

• The Medium and Long term funding obtained in the market throughout the year more than doubled the refinancing needs for 2009, with issues amounting to EUR 7.0 bn.

• The strong performance evidenced by the Customer Deposits (+EUR 3.2 bn YoY) and the Medium Long Term Funding (+EUR 4.1 bn yoy) combined with a strong and well balanced funding structure, allowed the group to achieve a liquidity surplus up to one year of approximately EUR 1.7 bn at the end of the year.

2009 refinancing needs

2009 funds raised

3.2

7.0

* Already deducted from applicable haircuts

-5


VI. Gross potential capital gains ended the year recovering Eur 570.3mn versus last year in the main equity holdings of the AFS portfolio

Portugal TelecomStake: 7.34%

EDPStake: 3.04%

Potential Capital Gains & Losses * BradescoStake: 2.78%

390.8291.0

-179.5 -189.2

58.3

2008 1Q09 2Q09 3Q09 4Q09

316.7297.5

-20.5

-5.2

147.4

2008 1Q09 2Q09 3Q09 2009

67.4

-15.7-91.2 -105.4

-31.8

2008 1Q09 2Q09 3Q09 2009

-0.62.8

-75.8 -84.9 -64.8

2008 1Q09 2Q09 3Q09 2009

(EUR mn)(EUR mn)

(EUR mn) (EUR mn)

* Includes Bradesco, PT, EDP and BMCE


VI. Pension Fund performance allowed for a reduction of Eur 146mn in out-of- corridor actuarial differences

Actuarial Assumptions Pension Fund Highlights

• At the end of the year pension liabilities were 103% covered by the fund’s assets.

• Outside of corridor actuarial differences were reduced by Eur 146mn YoY mainly as a result of the 11% pension fund return (above the expected return of 6%) which had a direct impact of Eur 83mn.

• The 2009 reduction in actuarial differences was important to offset mostly of the needed recognition in 2009 of the ¼ of actuarial differences deferred in 2008 (Eur 137mn for 2009) as allowed by the BoP.

Pension Fund Assets & Liabilities Actuarial Differences

2,1252,198

Assets Liabilities

206 204 220

765 718 619

2008 1H09 2009

(EUR mn)(EUR mn)

(EUR mn)

971 922

1.75%

3.25%

6.0%

5.5%

Dec 09

1.75%

3.75%

6.35%

5.75%

Jun 09

-2.00%Increase in Pensions

-0.50%4.00%Increase in Salaries

-0.35%5.80%Expected Return of Plan Assets

-0.25%5.75%Discount rate

Chg % vs Jun

09

Dec 08

Actuarial Assumptions

839


VI. Core Tier I still one of the highest in Iberia with an attractive dividend yield accompanying a strong capital position

RWA Components Evolution* Tier I Capital

Solvency Ratios Evolution* RWA

8.08.28.36.0 5.7 5.5 6.1 5.8

8.38.88.86.67.16.36.66.8

11.112.112.29.9

11.39.99.710.1

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

Core Tier I Tier I Total Capital

65,14262,03459,45359,005

55,70557,543 59,183 61,150

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

(EUR mn)

(EUR mn)

Standard IRB

3,146

3,712

55,176

3Q09

3,146

3,742

52,565

2Q09

3,146

3,063

52,796

1Q09

2,840

2,878

49,987

4Q08

3,761Op. Risk

3,951Trading Book

57,430Banking Book

4Q09

600 600 600

600 600 600

5,2325,0744,9223,4163,4123,345

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

(%)

Core Tier IPreferred Shares


Agenda

I. FY09 Highlights






VII. Wrap Up


VII. Wrap up• After the financial crisis, BES has emerged stronger than before, maintaining it’s strategic focus, sound financial

management and strong levels of activity growth.• Domestic market share has been reinforced to 21.2%. Since 2005, BES has systematically improved its position in

Portugal, increasing its market share by 320bp (18% in 2005). During 2009 alone, the increase was 50 bp confirming once again the merits of an organic growth strategy that has been BES trademark in the domestic market since 1991.

• Furthermore, BES continues to pursue a profitable growth outside Portugal, and during 2009 has taken important steps to boost the potential of international operations, not only by reinforcing local strategic partnerships like in the case of Angola, but also by entering new markets like Libya and Algeria and further expanding investment banking activities outside Portugal, namely in NY.

• The strategic positioning in the Southern Atlantic axis, namely Africa and Brazil, continues to benefit BES as it allows the Bank to have exposure to high growth countries, while providing its corporate client base with a service that cannot be matched by many, in markets that are evermore important to the clients in general and Portuguese ones in particular.

• During 2009 BES was also able to tap successfully international capital markets concluding a Eur 1.2bn capital increase in a particularly competitive time, placing BES as one the most well capitalised Banks in Iberia. On a similar note, BES Group issued Eur 7.0 bn of medium and long term debt in 2009 and already Eur 750mn in 2010, and is therefore well positioned to meet medium and long terms refinancing needs of this year, after 2009 needs were met well in advance.

• BES strong capital position is a key competitive advantage as it will allow the Bank to continue growing domestically but above all internationally, whilst being able to incorporate regulatory changes that might end up being recommended by the Basel Committee.

• In this context, of strong operating performance and sound financial management, BES Board of Directors will propose a dividend of 0.14 per share, representing a payout of 35% adjusted for non recurrent items.


Appendix I: Quarterly Data


Quarterly consolidated income statement

29.8%40.8%138.6%161.3114.6144.9101.367.570.7118.2145.9= Net Income

21.4

31.8

214.5

246.1

460.6

281.3

741.9

182.3

108.6

451.1

200.7

250.4

4Q09

114.0%

28.3%

43.6%

78.9%

60.5%

7.4%

35.1%

n.m.

0.2%

-4.3%

17.3%

-16.6%

QoQ

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

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

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

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

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

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

276.0%

64.8%

131.7%

134.4%

133.1%

14.3%

67.2%

n.m.

n.m.

-5.6%

16.9%

-18.2%

YoY

112.9%

31.5%

34.1%

88.6%

57.2%

5.4%

29.7%

n.m.

52.4%

11.4%

12.8%

10.6%

FY09/FY08

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.

+ 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

32.3%50.2%131.1%108.972.5115.246.147.025.277.8109.1= Net Income

3.5

35.1

147.5

199.4

347.0

207.3

554.4

220.6

333.7

157.2

176.6

4Q09

n.m.

101.5%

64.6%

118.6%

91.9%

-1.8%

41.5%

n.m.

-1.5%

24.6%

-17.0%

QoQ

-0.4

17.4

89.6

91.2

180.8

211.0

391.8

52.9

338.9

126.1

212.8

3Q09

1.2

4.8

121.1

153.6

274.8

210.0

484.8

94.5

390.2

147.9

242.4

2Q09

1.3

31.6

79.0

96.7

175.7

205.8

381.5

14.8

366.7

136.7

230.0

1Q09

2.3

18.2

67.6

68.9

136.5

199.9

336.4

-29.1

365.6

138.5

227.1

4Q08

-0.1

-18.8

6.5

74.9

81.4

211.5

292.9

-28.6

321.5

116.5

205.0

3Q08

1.9

37.6

117.3

98.3

215.6

210.6

426.2

108.9

317.3

121.7

195.6

2Q08

55.0%

92.8%

118.2%

189.1%

154.0%

3.7%

64.7%

n.m.

-8.7%

13.4%

-22.2%

YoY

1.3

13.3

123.7

62.1

185.8

194.9

380.7

52.0

328.7

123.3

205.4

1Q08

3.3%

75.8%

38.8%

77.8%

57.9%

2.1%

26.2%

-

7.2%

13.6%

3.4%

FY09/FY08

- Minorities

- Taxes


- Net Provisions


- Operating Costs

= Banking Income

+ Capital Markets & Other Results




(EUR million)


Quarterly international income statement

25.2%24.5%156.3%52.442.129.755.220.545.540.436.8= Net Income

17.9

-3.3

67.0

46.6

113.6

74.0

187.5

70.3

117.3

43.5

73.8

4Q09

73.0%

n.m.

11.9%

0.5%

6.9%

45.2%

19.3%

n.m.

-11.4%

-3.2%

-15.6%

QoQ

10.3

7.3

59.7

46.4

106.1

51.0

157.1

24.7

132.4

45.0

87.5

3Q09

11.1

3.5

44.3

56.2

100.5

47.5

148.0

27.4

120.6

28.1

92.5

2Q09

8.0

13.4

76.6

18.7

95.3

48.9

144.2

25.3

118.9

33.6

85.3

1Q09

3.4

1.0

24.9

36.1

61.0

46.4

107.3

-4.8

112.1

33.1

79.0

4Q08

5.3

5.7

56.5

15.1

71.5

44.0

115.5

9.1

106.4

42.4

64.0

3Q08

5.8

19.3

65.5

14.4

79.9

47.7

127.6

37.0

90.6

33.4

57.2

2Q08

n.m.

n.m.

169.5%

29.2%

86.5%

59.6%

74.8%

n.m.

4.7%

31.4%

6.6%

YoY

4.9

7.0

48.7

6.1

54.8

46.6

101.4

21.1

80.3

27.4

52.9

1Q08

143.9%

-36.2%

26.6%

134.5%

55.5%

19.9%

41.0%

-

25.7%

10.2%

34.0%

FY09/FY08

- Minorities

- Taxes


- Net Provisions


- Operating Costs

= Banking Income

+ Capital Markets & Other Results




(EUR million)


Angola: Quarterly income statement

---96.6%99.3%94.9%84.2%70.2%66.6%64.3%62.4%Total Credit / On BS C.Funds

255.6

1,753.9

1,673.4

4,462.5

21.7%

34.4

16.7

51.0

8.2

59.2

16.4

75.7

55.6

20.1

6.5

13.5

4Q09

15.2%

7.3%

3.1%

13.2%

-

74.7%

4.5%

43.2%

n.m.

57.3%

24.5%

48.8%

n.m.

-45.2%

-35.4%

-48.9%

QoQ

-4.4%1,634.71,599.51,697.11,680.61,508.21,248.3938.9On BS Customer Funds

-26.4%3,942.13,891.43,659.93,530.23,256.11,839.01,405.7Total Assets

-43.6%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

221.8

19.7

16.0

35.6

2.0

37.7

13.2

50.9

14.3

36.6

10.1

26.5

3Q09

136.4

15.8

7.7

23.5

1.9

25.4

10.6

36.0

-0.3

36.3

16.9

19.5

3Q08

156.8

10.7

10.8

21.6

1.0

22.6

11.6

34.2

2.8

31.5

11.6

19.8

4Q08

107.7

12.5

9.1

21.6

1.1

22.7

9.8

32.5

40

28.4

7.2

21.2

2Q08

188.3

16.0

13.1

29.1

1.9

31.0

14.3

45.3

11.5

33.8

11.8

22.0

1Q09

89.8

9.2

6.4

15.6

0.7

16.3

10.5

26.8

9.0

17.8

3.6

14.2

1Q08

10.7%-36.3%35.8Commercial Banking Income

=

86.4%220.0%19.9Net Income=

198.4

16.0

35.9

1.8

37.7

11.7

49.5

13.7

5.9

29.8

2Q09

-

81.7%

84.5%

n.m.

90.4%

31.0%

70.9%

n.m.

-12.6%

22.9%

FY09/FY08

63.0%

54.2%

136.7%

n.m.

162.1%

41.2%

121.0%

n.m.

-44.0%

-31.9%

YoY

-

=

-

=

-

=

+

+

+

Equity

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

---174293302992121334437Cost of Risk (bp)

-1.9%0.0%4,182.44,104.84,168.04,128.24,182.53,920.23,793.13,629.1Credit

6,718.9

60.8%

-7.6

-4.1

-11.7

26.5

14.8

22.8

37.6

7.8

29.8

8.2

21.6

4Q09

9.2%

-

n.m.

n.m.

n.m.

-5.4%

-25.2%

7.2%

-8.4%

n.m.

-26.4%

-37.9%

-20.9%

QoQ

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

6,155.0

-4.5

-3.8

-8.3

28.0

19.7

21.3

41.0

0.6

40.5

13.1

27.3

3Q09

5,908.8

-8.7

-3.2

-11.8

31.9

20.1

22.2

42.3

4.5

37.8

9.5

28.3

2Q09

5,866.1

2.6

0.6

3.2

4.4

7.6

23.0

30.6

2.8

27.8

11.4

16.4

2Q08

6,071.5

0.3

-0.7

-0.4

8.2

7.8

19.7

27.5

-1.1

28.5

11.7

16.8

3Q08

6,341.3

-8.7

-5.1

-13.8

22.7

8.9

22.0

30.9

-0.5

31.4

9.7

21.7

4Q08

6,103.7

6.7

2.2

9.0

10.3

19.3

21.6

40.9

2.9

38.0

8.9

29.1

1Q09

6,225.6

7.0

1.8

8.8

3.9

12.7

23.1

35.8

3.5

32.3

15.0

17.3

1Q08

21.7%-5.1%Commercial Banking Income

=

n.m.n.m.Net Income=

6.0%

n.m.

n.m.

16.8%

65.8%

3.8%

21.6%

n.m.

-16.0%

-0.2%

YoY

-

n.m.

n.m.

146.9%

99.6%

0.2%

29.7%

n.m.

-17.1%

47.4%

FY09/FY08

-

=

-

=

-

=

+

+

+

Assets



Net Provisions


Operating Costs

Banking Income



Net Interest Income

(EUR million)


Brazil: Quarterly income statement

42.3%30.7%24.0%29.5%115.6%24.9%20.3%39.7%Cost to Income

1,638.9

4.8

6.5

11.3

-0.5

10.8

7.9

18.7

0.7

18.0

10.3

7.7

4Q09

19.8%

-35.0%

n.m.

12.8%

n.m.

-24.7%

24.5%

-9.6%

-92.9%

67.8%

229.9%

1.0%

QoQ

1,367.9

7.4

2.6

10.0

4.3

14.3

6.4

20.7

10.0

10.7

3.1

7.6

3Q09

1,087.3

4.7

3.9

8.6

3.1

11.7

4.9

16.6

7.6

9.0

3.4

5.6

1Q09

1,090.8

11.6

15.1

26.7

0.4

27.1

6.9

34.0

29.0

5.0

3.9

1.2

2Q08

1,096.9

10.5

2.7

13.2

0.7

13.9

4.6

18.5

14.5

4.0

4.0

0.0

3Q08

1,027.6

1.5

-4.9

-3.4

2.9

-0.5

3.7

3.2

-6.6

9.8

0.0

9.8

4Q08

1,299.2

10.2

5.7

15.9

2.4

18.3

5.8

24.2

15.3

8.9

3.4

5.5

2Q09

1,049.8

6.2

1.9

8.1

0.1

8.2

5.4

13.6

7.7

5.9

3.1

2.8

1Q08

88.7%83.9%Commercial Banking Income

=

-9.0%215.9%Net Income=

59.5%

n.m.

n.m.

n.m.

n.m.

113.1%

482.9%

-110.8%

n.m.

-21.7%

YoY

26.8%

2.9%

126.5%

13.3%

21.3%

15.7%

-24.8%

85.8%

91.0%

FY09/FY08

-

=

-

=

-

=

+

+

+

Assets



Net Provisions


Operating Costs

Banking Income



Net Interest Income

(EUR million)


UK: Quarterly income statement

6514429419961811317Cost of Risk (bp)

8.4%6.3%2,9022,6772,6612,6422,7292,7632,6192,455Credit (Eur mn)

13.712%13%10%14%19%21%25%Cost to Income

25.0

-2.8

22.3

4.7

27.0

4.3

31.3

7.4

23.9

4.3

19.7

4Q09

70.3%

n.m.

30.9%

-50.9%

1.3%

18.7%

3.4%

n.m.

-24.0%

-69.9%

13.5%

QoQ

14.7

2.3

17.0

9.7

26.7

3.6

30.3

-1.2

31.5

14.2

17.3

3Q09

21.7

1.4

23.1

1.2

24.3

2.8

27.1

1.9

25.2

5.2

20.0

1Q09

5.5

-0.6

5.0

7.4

12.4

3.3

15.7

-1.8

17.5

6.5

11.0

2Q08

13.1

0.2

13.3

1.3

14.6

3.4

18.0

-5.4

23.4

4.4

19.0

3Q08

14.7

2.2

16.9

6.5

23.4

3.7

27.1

0.7

26.4

6.4

20.0

4Q08

6.9

-4.3

2.6

19.5

22.1

3.3

25.5

0.0

25.4

5.1

20.4

2Q09

8.4

0.9

9.3

1.0

10.3

3.4

13.7

-0.1

13.8

2.1

11.7

1Q08

30.6%-9.4%Commercial Banking Income

=

63.9%70.5%Net Income=

n.m.

32.1%

-27.4%

15.5%

16.0%

15.6%

n.m.

-32.8%

-1.9%

YoY

n.m.

46.4%

116.1%

65.1%

1.6%

53.3%

n.m.

47.9%

25.2%

FY09/FY08

-

=

-

=

-

=

+

+

+



Net Provisions


Operating Costs

Banking Income



Net Interest Income

(EUR million)


200.7

21.3

2.4

16.7

9.6

25.5

17.9

20.8

18.8

13.9

32.0

21.8

4Q09

17.3%

3.5%

21.0%

37.3%

7.0%

-5.3%

37.1%

14.0%

48.0%

41.0%

27.8%

1.3%

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

17.0%

-28.4%

25.5%

85.5%

4.0%

9.3%

28.4%

22.5%

29.2%

30.8%

28.1%

-3.0%

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

62.5%Trade Finance & Exp. related (1)

23.7%Corporate & Project Finance

12.8%

-3.9%

16.0%

29.1%

-0.2%

-2.1%

2.7%

26.7%

33.2%

-2.8%

FY09/FY08

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

0.75%40.70

-21.09

22.3226.4413.04

93.4

14.9

108.4

5.7

79.1

84.8

-26.5

14.8

35.2

23.5

3Q09

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

0.57%30.74

-20.36

16.6621.6812.77

73.1

35.5

108.6

21.6

73.0

94.6

10.5

1.0

2.5

14.0

4Q09

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

-43.0

120.0

23.6

100.6

9M09

-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

-45.2… Other

103.3… Capital Markets

37.8… Fees

95.8Other Results, ow

FY09(EUR million)

-24.1

13.3

9.1

-1.7

3Q09

-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

-2.2… Other

-16.7… Capital Markets

14.2… Fees

-4.8Other Results, ow

4Q09(EUR million)


Quarterly Equity Accounted Earnings

6.5

2.9

9.4

4Q09

0.3

7.1

7.4

3Q09

30.0%.

n.m.

n.m.

YoY %

n.m.

-59.2%

27.0%

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)

12.8

17.2

30.0

FY09

6.3

14.3

20.6

9M09

-26.9%

n.m.

n.m.

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

281.3

21.6

111.4

0.4

14.7

12.0

20.5

112.6

148.3

4Q09

7.4%

-0.8%

12.4%

n.m.

-12.2%

n.m.

-6.6%

11.3%

5.2%

QoQ

262.0

22.0

99.2

1.0

16.9

12.1

22.0

101.1

140.8

3Q09

192.9%93.6%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

-45.5%n.m.0.61.30.92.50.8…Long term service benefits

-9.5/-10.8%14.016.616.316.615.5…Other

80.4%27.7%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

14.3%

3.2%

16.5%

17.7%

14.4%

YoY

3.8%…Remunerations

5.4%

12.0%

0.0%

8.6%

FY09/

FY08

Admin costs

Total Operating Costs

Depreciation

Staff costs

(EUR million)


Quarterly operating costs: domestic and international

74.1

3.9

28.6

-

1.5

-0.3

40.5

41.6

207.2

17.8

82.8

0.4

13.2

12.0

20.8

72.1

106.6

4Q09

45.3%

-3.5%

47.5%

-6.2%

60.8%

50.9%

-1.7%

-1.0%

3.9%

-55.9%

-13.4%

n.m.

-1.6%

-5.0%

-6.0%

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

192.9%93.6%12.712.76.26.12.32.3… Amort. of Actuarial Differences

5.0%-5.9%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

-45.0%-66.5%0.61.30.92.50.8…Long term service benefits

-7.8%-12.0%12.215.014.815.013.9…Other

86.9%39.6%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

22.6%80.6%24.522.422.4…Remunerations

20.5%65.1%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

59.4%

4.1%

62.8%

3.7%

3.0%

6.1%

-1.5%

2.1%

YoY

-2.6%…Remunerations

19.8%

18.8%

19.3%

-21.9%

2.1%

10.5%

-4.0%

5.7%

FY09/FY08

International Operating Costs

Admin costs

Depreciation

Admin costs

…Post Employment Benefits

Domestic Operating Costs

Depreciation

Staff costs

Domestic (EUR million)


Quarterly Provisions

59 bp61 bp87 bp81 bp40 bp62 bp55 bp55 bpcost of risk ex extra (bp)

76 bp85 bp114 bp80 bp61 bp67 bp57 bp51 bpcost of risk ex extra

246.1

48.9

35.5

139 bp

36.4

125 bp

125.2

128 bp

161.6

4Q09

708.8

95.9

73.0

152.9

387.0

107 bp

539.9

FY09

78.8%

164.4%

138.0%

-17.5%

108.8%

43 bp

55.3%

QoQ

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

94.2%227.8%60.0123.877.938.259.051.650.6Domestic

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

103.6%2.2%44.253.718.735.619.914.15.5International

137.6

18.5

14.9

85 bp

104.2

3Q09

25.6%17.6%14.77.930.27.618.02.2…Securities

115.4

10.9

80 bp

96.6

1Q09

121.3%n.m.17.51.03.428.99.9…Other

50 bp67 bp147 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

134.4%

119.0%

YoY

96.7%…Credit

88.6%

FY09/

FY08

Total Provisions

(EUR million)


Quarterly balance sheet: assets

82,297

3,490

188

21

794

138

659

-

238

455

-

2,542

(1,552)

48,979

7,998

8,532

1,002

4,460

611

2,192

4Q09

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

9.5%

11.8%

32.5%

-60.3%

23.2%

11.0%

3.2%

-

60.6%

-51.4%

-

17.7%

35.2%

4.1%

76.5%

20.3%

-53.6%

20.8%

-8.1%

8.1%

YoY

2.0%76,64175,18774,42172,56467,892Total Assets

-26.1%3,4183,1212,7322,9892,141Other assets

114.0%159142632725Deferred income tax assets

-63.4%5753181919Current income tax assets

2.5%636645543559583Investments in associated companies

13.5%1231241009590Intangible assets

-1.6%654638546574550Other tangible assets

------Investment property

-27.0%172148121380302Non current assets held for sale

18.2%632936301228448Hedging derivatives

------Financial Assets with repurchase agreements

-1.0%2,4852,160521539495Held to maturity investments

8.9%(1,215)( 1,148)( 1,111)(1,080) (1,033)(Provisions)

2.9%47,06347,04946,06844,87943,385Loans and advances to customers

3.9%6,6484,5329,1118,8846,466Loans and advances to banks

9.7%7,1487,0946,8415,8215,741Financial assets available for sale

-52.8%2,0722,1622,1342,5231,921Financial assets at fair value through P&L

15.7%3,9063,6903,6113,5594,028Financial assets held for trading

-8.6%531664677525507Deposits with banks

72.4%9372,0271,0339631,192Cash and deposits at central banks

QoQ 1Q094Q083Q082Q081Q08(Eur mn)


Quarterly balance sheet: liabilities

75,358

1,230

2,639

-

79

134

180

22

253

-

33,101

25,447

6,896

-

1,561

2,005

3,818

4Q09

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

6.9%

-6.6%

-6.7%

-

111.5%

49.3%

37.1%

68.5%

-65.2%

-

34.6%

-3.6%

-10.2%

-

-18.5%

39.2%

-20.6%

YoY

1.7%75,19870,53469,58967,65862,770Total Liabilities

-42.7%1,3541,3161,3301,7801,575Other liabilities

-2.3%2,6642,8292,5452,0882,090Other subordinated loans

------Instruments representing capital

-9.7%79372952123Deferred income tax liabilities

78.7%4690476775Current income tax liabilities

21.1%145131164165142Provisions

-65.9%421313250233Non current liabilities held for sale

-11.5%310727332396386Hedging derivatives

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

4.8%30,23024,59728,12627,33025,858Debt securities

4.2%25,15626,38723,11723,91722,069Due to customers

-10.0%10,3507,6828,2157,3137,187Deposits from banks

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

-4.1%1,5841,9141,8371,4191,526Financial liabilities held for trading

87.2%1,0351,4411621560(ow, European Central Banks System)

15.0%3,2394,8103,8342,8801,507Amounts owed to central banks

QoQ2Q094Q083Q082Q081Q08(Eur mn)


Quarterly balance sheet: equity

6,939

284

-

522

672

301

600

-25

-

1,085

3,500

6,119

4Q09

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

48.8%

84.7%

-

29.8%

5.4%

n.m.

0.0%

-15.9%

-

62.3%

40.0%

49.4%

YoY

4.7%6,2294,6534,8324,9065,122Total Equity

48.2%187154154147137Minority interests

------Anticipated dividends (prefshares)

44.7%246402335264146Net Profit for the period / year

-2.5%666624621615884Other reserves and retained earnings

32.4%(31)( 266)( 17)141222Fair value reserve

0.0%600600600600600Preference shares

-2.8%(26)( 30)( 30)( 30)( 35)Treasury stock

------Other capital instruments

-0.1%1,086669669669669Share premium

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

0.9%5,7964,0974,3434,4954,839Shareholders' Equity

QoQ2Q094Q083Q082Q081Q08(Eur mn)


Quarterly loan portfolio (including securitised)

5.4%

2.1%

2.7%

5.8%

2.5%

3.4%

3.8%

1.4%

1.7%

-1.5%

1.3%

1.2%

1.3%

QoQ

811

1,183

1,994

849

1,137

1,987

0

15

15

-38

30

-8

7

YoYabs

20%

10,514

43,444

53,958

9,675

26,686

36,362

324

2,493

2,817

515

14,264

14,779

17,596

4Q09

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

539

882

1,421

534

663

1,198

12

35

47

-8

183

175

222

QoQabs

8.4%

2.8%

3.8%

9.6%

4.5%

5.8%

0.0%

0.6%

0.5%

-6.9%

0.2%

-0.1%

0.0%

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)

293 bp

177 bp

61 bp

85 bp

2.91%

130.6%

2.23%

159.4%

2.04%

3.58%

0.71%

1.82%

186.4%

1.56%

Sep 09

1.60%1.42%1.20%1.09%1.05%1.08%1.02%Overdue Loans >90 days / Gross Loans

191.5%197.9%209.5%219.0%223.4%217.3%228.9%Coverage of Overdue Loans > 90 days

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

3.55%3.60%3.60%3.13%3.24%3.18%3.02%Consumer (>30d)

0.75%0.74%0.72%0.68%0.68%0.67%0.65%Mortgage (>30d)

174 bp302 bp99 bp212 bp133 bp44 bp37 bpSpain

125 bp128 bp81 bp40 bp62 bp55 bp55 bp… Domestic

139 bp215 bp75 bp147 bp86 bp67 bp28 bp… International

107 bp147 bp80 bp61 bp67 bp57 bp51 bpQoQ Provision Charge

173.7%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

2.27%Overdue and Doubtful Loans Ratio (BoP) (1)

135.2%Coverage of Overdue and Doubtful Loans (BoP)

3.07%Provisions for Credit / Total Gross Loans

1.77%Overdue Loans >30 days / Gross Loans

Dec 09(EUR million)



378.3

1,425.7

58.5

1,091.9

764.8

894.4

49,032

9M09

265.5

404.2

-6.4

385.9

286.4

256.1

2,333

EUR mn

YoY Chg

96.7%

35.2%

-7.8%

50.7%

54.6%

40.3%

4.8%

%

539.9

1,552.3

76.2

1,147.9

810.6

893.5

50,531

FY09

QoQ Chg

-

126.6

-

56.0

45.8

-0.9

1,499

EUR mn

-

8.9%

-

5.1%

6.0%

0.0%

3.1%

%

82.6Write Offs (acumm)

274.4Credit provisions (P&L)

1,148.1Credit provisions (Balance)

762.0Overdue and Doubtful Loans (BoP) (1)

524.2Overdue Loans (over 90 days)

636.9Overdue Loans (over 30 days)

48,198Gross Loans (On-BS)

FY08(EUR million)

Asset Quality Indicators



Quarterly & accumulated credit provision charge & net new entries

0.88

0.49

233 bp

156 bp

89 bp

103 bp

71.8

116.5

261.8

378.3

293 bp

177 bp

61 bp

85 bp

30.1

44.3

60.0

104.2

3Q09

0.131.081.070.370.550.520.41Net new entries as % Performing Loans (quarter)

387.0201.877.9199.3161.1102.150.6… Domestic

152.972.418.775.139.519.65.5… International

90.041.710.242.720.57.53.3ow Spain



215 bp200 bp99 bp102 bp70 bp40 bp37 bpow Spain



174 bp302 bp99 bp212 bp133 bp44 bp37 bpow Spain

18.231.510.222.213.04.23.3ow Spain

125.2123.877.938.259.051.650.6… Domestic

36.453.718.735.619.914.15.5… 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

0.67

107 bp

539.9

128 bp

161.6

4Q09

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

5.3%

0.6%

2.1%

-0.7%

3.4%

6.2%

-0.6%

10.0%

-7.7%

4.2%

2.9%

QoQ

6,551

-1,653

4,898

1,614

3,284

-1,530

5,754

546

-1,485

-940

4,814

YoYabs

32%

19,394

41,201

60,595

19,122

41,473

6,749

9,277

18,059

7,389

25,447

34,724

4Q09

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

-616-16.7%8,0057,9637,1248,8748,7609,6638,398Sight

1,6483.1%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

1,031-3.6%26,38723,11723,91722,069… Deposits

-57163.3%3,5237,4136,9916,447… Certificates of Deposits

12,843

42,855

55,698

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

51.0%

-3.9%

8.8%

9.2%

8.6%

-18.5%

16.1%

YoY

14,801

38,292

53,093

18,231

34,862

6,346

28,516

1Q08

969

262

1,231

-138

1,369

395

974

QoQabs

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

2,866

16,256

19,122

516

3,579

4,095

5,511

140

2,581

2,721

71

1,192

1,263

2,139

3,393

5,532

4Q09

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

-0.2%11.3%1,0711,1501,2371,265… Domestic

2.9%0.0%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

-3.7%

11.9%

9.2%

-41.2%

21.6%

7.2%

6.2%

6.1%

4.2%

4.3%

10.6%

12.8%

19.0%

16.5%

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

2.2%… Domestic

-14.5%

-0.7%

-47.4%

10.2%

-3.2%

1.0%

1.5%

3.0%

2.9%

0.0%

-1.1%

-3.3%

-2.4%

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 of FY09

291.0

6.4

-15.7

2.8

297.5

3Q09

58.2

7.4

-31.8

-64.8

147.4

2Q09

390.8

7.3

67.4

-0.6

316.7

4Q09

-189.2-179.5838.81,538.0Total

-5.2-20.5661.72.78%696.3Bradesco

0.25%

7.34%

3.04%

% AFS

8.0

-91.2

-75.8

2008

8.6

76.0

70.5

2007

6.3

-105.4

-84.9

1Q09

2.5BMCE493.6Portugal Telecom345.6EDP

Acquis. Value(EUR million)


Quarterly solvency ratios

12.1%

8.8%

8.2%

11%

600

2,097

5,450

5,074

7,536

+3,146

3,712

55,176

62,034

Sep 09(IRB)

12.2%

8.9%

8.3%

11%

600

1,981

5,263

4,922

7,234

3,146

3,742

52,265

59,453

Jun 09(IRB)

9.9%

6.6%

5.8%

15%

600

1,946

3,901

3,415

5,838

3,146

3,063

52,796

59,005

Mar 09(IRB)(IRB)(Std)

11.3%

7.1%

6.1%

15%

600

2,327

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

11.1%

8.3%

8.0%

11%

600

1,851

5,407

5,232

7,258

3,761

3,951

57,430

65,142

Dec 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: Global economic recovery on the way, on the back of aggressive policy stimulus and with emerging markets showing strong growth.

US: GDP growth (%, y-o-y) and ISM manufacturingChina: GDP growth and imports (%, y-o-y).

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

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

Source: Bloomberg

0

20

40

60

80

100

120

140

160

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

USD;

EUR USD

EUR

73

51

Per

cent

Per

cent

-15

-10

-5

0

5

10

1992 1994 1996 1998 2000 2002 2004 2006 2008

%


Markets Environment: Stronger growth prospects with low inflationary pressures have resulted in stronger confidence in financial markets.

10- year Government Bond Yields.

3-month Euribor and USD Libor (%) Credit Spreads (Financials)

Selected Stock Indices.

Source: Bloomberg & Reuters

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. Jan.

%

USA

Euro Zone

2007 2008 2009 2010

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2005 2006 2007 2008 2009 2010

%

3-month Euribor

3-month Libor

30

50

70

90

110

130

150

170

Jun.2007

Set.2007

Dez.2007

Mar.2008

Jun.2008

Set.2008

Dez.2008

Mar.2009

Jun.2009

Set.2009

Dez.2009

Eurostoxx 50

01 Ju

n. 2

007

= 10

0

S&P 500

Bovespa

Shanghai Composite

Sensex (India)

0

50

100

150

200

250

Jan. 2007 Jul. 2007 Jan. 2008 Jul. 2008 Jan. 2009 Jul. 2009 Jan. 2010

(bps)

iTRAXX Financials Senior 5yr


Portugal: Financial sector stability and no significant housing corrections allowed for an early recovery in GDP growth, with an improvement in exports. The “Greece effect” has hurt sovereign ratings, but public debt affordability remains in line with the main Euro area economies.

10-year Government Bond Yield Spread vs. Germany (bps).

Public Debt Affordability (Interest Payments as a percentage of annual tax revenues, %).

Source: INE, IGCP, European Commission & Bloomberg

02468

101214

Finl

and

Spai

n

Neth

erla

nds

Fran

ce

Austr

ia

Ger

man

y

Portu

gal

Irela

nd

Belg

ium

Italy

Gre

ece

Aaa countries Non-Aaa countries

-4.0-3.0-2.0-1.00.0

1.02.03.04.05.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

%

Q-o-Q

Y-o-Y

Exports of Goods and Services (EUR billion, Monthly Flows, 3-month MA).

GDP growth (%, y-o-y and q-o-q).

0

50

100

150

200

250

300

350

O ut. 2007 M ar. 2008A go . 2008 Jan. 2009 Jun. 2009 Nov. 2009

Basi

s Po

ints

G reece

Ire land

P ortu galSpa i

8292

149

304

82

Ita ly


Sources: INE, Bank of Portugal, ES Research.

Portugal Forecasts 2009-2011

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

10.510.09.27.68.07.7Unemployment (% of Labour Force)

-9.5-9.3-8.2-10.5-8.1-9.3Current & Capital Account Balance (% GDP)

91.184.677.466.463.564.7Public Debt (% GDP)

-6.5-8.3-9.3-2.7-2.6-3.9Budget Balance (% GDP)

1.81.5-0.82.62.53.1Inflation (%)

3.00.7-10.12.15.65.1Imports

4.12.3-12.3-0.57.58.7Exports

0.5-1.0-12.5-0.13.2-0.3Investment

0.20.31.50.50.0-1.4Public Consumption

1.00.3-0.31.61.61.9Private Consumption

1.00.5-2.60.01.91.4GDP

2011F2010F2009200820072006


PMI Services and Manufacturing

GDP growth (%).

Public Deficit (% GDP, European Commission Forecasts).

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

Source: INE & Bloomberg

-20

-15

-10

-5

0

5

10

15

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

%

Private consumption

Investment

Export

-5

-3

-1

1

3

5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

%

y-o-y

q-o-q

25

30

35

40

45

50

55

60

65

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Inde

x (Po

ints)

PMI Services

PMI Manufacturing

-12.0

-10.0

-8.0

-6.0-4.0

-2.0

0.0

2.0

4.0

1999 2001 2003 2005 2007 2009F 2011F

%

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


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

Spain Forecasts 2009-2010

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


-3.5-3.7-4.5-9.1-9.6-8.4Current & Capital Account Balance (% GDP)

74.066.354.339.736.139.6Public Debt (% GDP)

-9.3-10.1-11.2-4.11.92.0Budget Deficit (% GDP)

1.80.9-0.34.12.83.4Inflation (%)

2.2-2.7-20.0-4.98.010.3Imports

3.31.3-13.0-1.06.66.7Exports

-1.3-8.4-15.6-4.44.67.1Investment

2.21.74.35.55.54.6Public Consumption

0.9-0.5-5.2-0.63.63.9Private Consumption

1.0-0.8-3.70.93.63.9GDP

2011F2010F2009F200820072006


Annual GDP growth (%) External reserves (USD million)

Kwanza exchange rate Oil production (mb/day)

Angola: Lower oil revenues in 1H2009 have contributed to a slowdown in activity and have forced a kwanza depreciation. But the recovery in oil output, the resilience of non energy sectors, and the environment of macroeconomic stability are already contributing to a reacceleration in growth.

Source: BNA, OPEC & Bloomberg

0

20

40

60

80

100

120

140

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

EUR/

AOA

and

USD/

AOA

127.33

89.96

EUR/AOA

USD/AOA

1.4

1.5

1.6

1.7

1.8

1.9

Jan.2007



Apr. Jul. Oct.

mb/

d

1.9

10.0

2.0

13.2

20.318.6

20.6

11.2

3.3

13.0 14.8

20.1

27.5

14.1

9.0

10.3

10.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2003 2004 2005 2006 2007 2008F 2009F 2010F

%

Non-oil sector

GDP

0

5

10

15

20

25

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

12.9

20.1

USD

billio

ns

2008 2009


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

Angola Forecasts 2009-2010

25.025.030.019.619.614.0BNA Rediscount Rate (%), end of period

80.080.078.075.177.180.4Exchange Rate (USD/KZ), annual average

5.00.6-4.88.811.514.8Budget Balance (% GDP)

2.42.2-3.47.515.925.2Current Account Balance (% GDP)

14.015.414.012.512.213.3Inflation (%)

5.3674.9194.0275.0543,6292,847GDP per capita (USD, current prices)

9.110.02.013.220.318.6GDP (real growth rate, %)

2011F2010F2009F200820072006


Brazil: Domestic demand strength is fuelling a recovery and should lead to GDP growth around 5% in 2010. Sound external accounts and strong capital inflows have led to an appreciation in the Real.

GDP growth (%)

External Accounts

USD/BRL and Sovereign CDS spread

Retail sales and industrial production (%, y-o-y).

Source: IBGE, BACEN & Bloomberg

-4

-2

0

2

4

6

8

2002 2003 2004 2005 2006 2007 2008 2009

%

Y-o-Y

Q-o-Q

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

5Y CDS(LHS)

-20

-15

-10

-5

0

5

10

15

20

2001 2002 2003 2004 2005 2006 2007 2008 2009

%

Industrial Production

Retail sales


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

Brazil Forecasts 2009-2011

9.5010.508.7513.7511.2513.25SELIC Interest Rate (%, End of Period)

1.951.831.991.841.952.18Exchange Rate (USD/BRL), annual average

-2.5-2.1-1.4-1.70.11.3Current Account Balance (% GDP)


39.841.643.138.843.944.0Public Debt (% GDP)

3.33.31.93.73.53.8Primary Budget Balance (% GDP)

4.44.54.35.94.53.1Inflation (%)

4.05.00.05.16.14.0GDP (real growth rate, %)

2011F2010F2009F200820072006


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

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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

FY09 Results Presentation(Un-audited Figures)

FY09 Results Presentationweb3.cmvm.pt/sdi2004/emitentes/docs/FR26737.pdf · FY09 Results...

Documents

Transcript of FY09 Results Presentationweb3.cmvm.pt/sdi2004/emitentes/docs/FR26737.pdf · FY09 Results...