1

BANCO COMERCIAL PORTUGU ÊS

EARNINGS PRESENTATION

September 30, 1999

2

Banco Comercial PortuguêsHighlights as at September 30, 1999

“The first nine months of 1999 have seen the BCPAtlântico Group consolidate itsposition as the market leader in the Portuguese financial sector. We are pleasedto report that we have met our targets for revenue and earnings growth andremain confident about the outlook for the remainder of the year”, Mr. JardimGonçalves, Chairman and CEO

Net IncomeNet Income 393393 + 91%+ 91%

LoansLoans to to Customers Customers ((NetNet)) + 35%+ 35%

Customers FundsCustomers Funds + 7%+ 7%

Assets under ManagementAssets under Management + 7%+ 7%

Insurance PremiumsInsurance Premiums + 24%+ 24%

(EUR(EUR million million, 12, 12 month growth month growth))

22,53222,532

31,24931,249

13,41713,417

879879

3

Agenda

� Business Summary

� Financial Highlights

� Contribution by business

� Public offers

4

Main Events� Launching of a Public Exchange Offer for the whole share capital of Banco

Pinto & Sotto Mayor (BPSM), offering 25 BCP shares per 27 BPSM shares or,as an alternative, a cash consideration of EUR 23.1560 per share of BPSM –inclusive of an obligation to buy outstanding minorities in Banco Totta &Açores at EUR 26.1360 per share, to be paid in cash

� Launching of an all cash Public Offer for the whole share capital of CréditoPredial Português (CPP) at EUR 14.3500 per share

� Amending the terms of the Public Exchange Offer for the whole share capital ofCompanhia de Seguros Mundial-Confiança (MC), with BCP reserving the rightto acquire all shares tendered, provided it acquires majority of shares and votingrights of MC’s subsidiaries

� BCP shareholders approve capital increases in the context of the Public Offerspreliminarily announced at a General Meeting held on July 26, 1999

� BCP and INTERAMERICAN announce the launching of a greenfield bankingoperation in Greece

� BCP announces a strategic partnership agreement and increases stake in BBG

5

Customer Funds (*)Customer Funds (*)EUR million

30 Sept 98 30 Sept 99

18,924 20,935

CorporateRetail

Key Earnings DriversDistribution networks enjoy sustained growth

11%

Loans (*)Loans (*)

Private Banking

41%

13%

78%

9%

75%

13%

12%

30 Sept 98 30 Sept 99

11,592 16,400

46%

52%

44%

53%

2% 3%

(*) Average-9 month cumulative balances

6

Key Earnings DriversCross-selling: 3.2 products per client and rising

3 .3 9

2 .8 9

2 .3 8

2 .7 4

4.14

3.30

2.94

3.22

Jun 99 Dec 98

7

5,7074,279

Sept 98 Sept 99

Cross-sellingSustained growth

Billings

Cards (‘000)

Cards

Loans

Loan applications (‘000)

Mortgage creditEUR million

1 ,2611 ,032

S e pt 98 S e pt 99

29.527.2

S e pt 98 S e pt 99

22% 33%

1,4851 ,225

S e pt 98 S e pt 99

8

Cross-sellingSustained growth

Investment Funds

Portfolio management

Assets under management

Revenue

Policies (‘000)

Insurance premium

EUR million

7 ,6637 ,648

S e pt 98 S e pt 99

5 ,7544 ,919

S e pt 98 S e pt 99

879706

S e pt 98 S e pt 99

471375

S e t 98 S e t 99

17%

24%

9

Agenda

� Business Summary

� Financial Highlights

� Contribution by business

� Public offers

10

BCP Group ProfitabilityMain Indicators

30 Sept 1999

30 Sept 1998

30 Sept 1997

Net Income 392.6 206.0 95.7

ROA 1.9% 1.3% 0.9%

ROE 31.5% 23.6% 12.2%

EPS 394.6 230.1 133.4

EPS 1.97 1.15 0.67

PTE (97 and 98) converted at 1Euro=200.482 PTE

Million EURO

Escudo

EURO

11

Consolidated Net IncomeEUR million

(*) Refers to EUR 374 million in Gains on the sale of shares of subsidiaries, EUR 145 million of Provisions and EUR 29 million related to the impact of BCP´s share price evolution on the treasury stock

393

144

200

193

Net incomeSept 99

Adj. Netincome Sept

99

Adj. Netincome Sept

98

} 33%

(*)

ROE 31.5% 16.8%16.4%

12

Group Statement of IncomeMain Indicators

3 0 S ept 1 9 9 9

3 0 S ept 1 9 9 8

3 0 S ept 1 9 9 7

N et interest margin

a s % o f To ta l in te re st ea rn in g a sse t 3 .0 % 3 .1 % 3 .2 %

O ther income

a s % o f To ta l in c o m e 6 0 .1 % 5 9 .7 % 5 6 .4 %

O perating costs

a s % o f To ta l in c o m e 4 5 .2 % 4 7 .1 % 5 2 .3 %

13

Consolidated Statement of IncomeE U R m illio n

PT E billio n

3 0 Se pt 1 9 9 9

3 0 Se pt 1 9 9 8

A n n u a l g ro w th

N e t in te res t inc ome 1 3 0 .0 6 4 8 .4 5 8 7 .2 1 0 %

P rovis ion for loan los s es 2 2 .5 1 1 2 .2 1 0 2 .2 1 0 %

N e t in te res t income afte r provis ions 1 0 7 .5 5 3 6 .1 4 8 5 .0 1 1 %

N e t commis s ions income 4 8 .8 2 4 3 .4 2 1 8 .5 1 1 %

O the r ope rating income 9 9 .2 4 9 4 .6 3 2 1 .3 5 4 %

O pe rating cos ts 1 4 7 .3 7 3 4 .8 6 8 5 .6 7 %

Income be fore taxes 1 0 8 .1 5 3 9 .4 3 3 9 .2 5 9 %

P rovis ion for income taxes 1 0 .1 5 0 .5 5 0 .5 0 %

M inor i ty in te res ts 1 9 .3 9 6 .3 8 2 .7 1 6 %

N e t income 7 8 .7 3 9 2 .6 2 0 6 .0 9 1 %

14

Group Net Commission Incomeper activity

EUR million

PTE billion

30 Sept 1999

30 Sept 1998

Annual growth

Banking 35.4 176.8 159.5 11%

of which Cards 10.1 50.6 38.5 31%

Securities 6.4 31.9 52.2 -39%

Other 18.9 94.3 68.7 37%

Asset Management 13.2 65.8 57.9 14%

Subtotal 48.6 242.6 217.3 12%

Insurance 0.2 0.8 1.2 -32%

Total 48.8 243.4 218.5 11%

Total as % of Total Income 15.0% 15.0%

15

Group Other Operating Income Diversified income stream

E U R m illio n

PT E billio n

3 0 Se pt 1 9 9 9

3 0 Se pt 1 9 9 8

A n n u a l g ro w th

Income from s ecur i ties 1 0 .3 5 1 .3 4 5 .5 1 3 %

P rofi ts ar is ing from trading ac tivi ties (n e t) 1 7 .8 8 8 .6 1 3 7 .2 -3 5 %

o f w h ich: Insura nce securi t ies p o rt fo l io 4.9 24.5 45.9 -47%

O ther ope rating income 7 1 .1 3 5 4 .7 1 3 8 .6 1 5 6 %

o f w h ich: C a p i ta l g a ins (ne t o f p ro v isio ns) 45.8 228.7 61.7 271%

Total 9 9 .2 4 9 4 .6 3 2 1 .3 5 4 %

16

EUR million

Group Loan Quality

CoverageRatio

PDL + 90 daysPDL + 90 days as% of Total Loans

3 5 5 .72 7 8 .5 2 5 2 .1

1 1 3 .0 %1 4 5 .2 %

1 7 9 .9 %

3 0 S e pt 9 7 3 0 S e pt 9 8 3 0 S e pt 9 9

1 .1 %1 .6 %

2 .7 %

17

Group Loan Portfolio by Segment

E u ro m illio n

P T E billio n

3 0 S ept 1 9 9 9

3 0 S ept 1 9 9 8

A n n u a l g ro w th

Loans to customers (gross) 4 ,5 5 5 2 2 ,7 2 2 1 6 ,8 8 5 3 5 %

S ervices and C ommerce 1 ,2 6 0 6 ,2 8 7 5 ,0 6 0 2 4 %

a s a % o f Lo a n s 2 8 % 3 0 %

M ortgage loans 1 ,1 4 4 5 ,7 0 7 4 ,2 7 9 3 3 %

a s a % o f Lo a n s 2 5 % 2 5 %

C onsumer cred it 4 5 4 2 ,2 6 4 1 ,5 5 6 4 5 %

a s a % o f Lo a n s 1 0 % 9 %

18

Solvency Ratio(BIS)

Bank of Portugal

RWA(EUR million)

Tier I

(e) Estimated

20,79717,468

11.1 %

Tier II

8.9 % 11.0 %

5.9%

9.2% 9.0%

S e pt 97 S e pt 98 S e pt 99 (e )

9.7%

11.7% 12.0%

25,728

19

Agenda

� Business Summary

� Financial Highlights

� Contribution by business

� Public offers

20

Banco Português do AtlânticoRetail Banking

• Atlântico reported net income of 101.7million Euro, up 34% vs. the third quarterof 1998

EUR million

P TE bi l l ion

3 0 S ept 1 9 9 9

3 0 S ept 1 9 9 8

A n n u a l g ro w th

Net inte res t income 3 6 .5 1 8 1 .8 1 6 9 .3 7 %

Net commis s ions 1 4 .4 7 1 .9 5 9 .4 2 1 %

O perating cos ts 4 9 .5 2 4 6 .8 2 2 8 .9 8 %

Net income 2 0 .4 1 0 1 .7 7 5 .7 3 4 %

RO A 0 .7 % 0 .5 %

RO E 1 5 .3 % 1 3 .2 %

4,017

5,399

1.4% 1.5%

30 Sept 98 30 Sept 99

34%

NIM

Loan Portfolio (Net)

21

Banco de Investimento ImobiliárioMortgage Banking

• Loan growth exceeds expectations

EUR million

P TE bi l l ion

3 0 S ept 1 9 9 9

3 0 S ept 1 9 9 8

A n n u a l g ro w th

Net in te res t income 1 9 .8 9 9 .0 7 9 .6 2 4 %

O perating cos ts 4 .7 2 3 .2 1 7 .7 3 1 %

Net income 6 .1 3 0 .5 2 2 .7 3 5 %

RO A 0 .7 % 0 .8 %

RO E 3 2 .5 % 3 1 .9 %

4,010

5,547

2.9% 2.4%

30 Sept 98 30 Sept 99

38%

Loan Portfolio (Net)

NIM

22

Banco CisfInvestment Banking

• Strong investment banking earningsdespite market weakness

P TE bi l l ion

3 0 S ept 1 9 9 9

3 0 S ept 1 9 9 8

Annual growth

N e t in te r e s t inc om e 1 .5 7 .3 8 .2 -1 1 %

O the r inc om e 6 .4 3 2 .0 2 2 .6 4 1 %

O pe r ating cos ts 2 .0 1 0 .0 1 1 .2 -1 0 %

N e t inc om e 3 .4 1 7 .2 9 .3 8 3 %

R O A 1 .3 % 0 .7 %

R O E 2 2 .3 % 1 3 .3 %Net Commission Income CISF Dealer

30.839.3

30 Sept 98 30 Sept 99

EUR million

11.4

Total Income

7.07.0

23

LeasefactorLeasing & Factoring

Loans to customers (Leasing)• Specific provisions for credit risk

impact third quarter results, offsettingstrong activity growth

1,0751,393

30 Sept 98 30 Sept 99

30%

P TE bi l l ion

3 0 S e pt 1 9 9 9

3 0 S e pt 1 9 9 8

A n n u a l g ro w th

N et in te res t income 6 .8 3 3 .8 3 1 .4 8 %

O pe rating cos ts 3 .0 1 5 .1 1 3 .1 1 5 %

N et income 1 .0 5 .2 1 1 .2 -5 4 %

R O A 0 .4 % 1 .1 %

R O E 1 0 .4 % 2 5 .5 %

EUR million

30 Sept 98 30 Sept 99

Factoring (receivables)

1,244

1,756

41%

282 264

Loans

24

AF InvestimentosAsset Management

EUR million

• Market leader with a 27.3% share

• 16.3 % of total investments in equities(11.1 % in Non-Portuguese equities)

Portfolio Management

Investment Funds

7,663

4,919

5,754

30 Sept 98 30 Sept 99

12,567

13,417

7,648

7%

P TE bi l l ion

3 0 S e pt 1 9 9 9

3 0 S e pt 1 9 9 8

A n n u a l g ro w th

N e t commis s ions 7 .2 3 5 .9 3 4 .4 4 %

O perating cos ts 1 .6 7 .9 7 .3 9 %

N e t income 4 .1 2 0 .6 1 8 .5 1 1 %

R O E 5 4 .4 % 7 8 .7 %

25

Seguros & PensõesInsurance

• Industry leader with a 22.3% share inlife and 13.8% in non-life

EUR million

P TE bi l l ion

3 0 S ept 1 9 9 9

3 0 S ept 1 9 9 8

A n n u a l g ro w th

Li fe premia 1 1 4 .5 5 7 1 .0 4 3 7 .8 3 0 %

Non-l i fe premia 6 1 .7 3 0 7 .7 2 6 8 .1 1 5 %

Technical marg in 2 7 .0 1 3 4 .5 1 2 9 .2 4 %

Net income 4 .9 2 4 .4 2 5 .0 -2 %

RO A 0 .9 % 1 .1 %RO E 8 .0 % 8 .4 %

Premium Revenue Revenue

571

268

308

30 Sept 98 30 Sept 99

706

879

Non-life Life

438

24%

26

Agenda

� Business Summary

� Financial Highlights

� Contribution by business

� Public offers

27

Mundial-Confian ça OfferConsolidating BCP´s leadership in the Portuguese financial system

� Share offer with cash alternative for 100% of MC

� 2.02 BCP shares (nominal value EUR 5) for 1 MCshare or EUR 50.1768 per share in cash

� 80% premium over pre-bid price

� Subject to majority acceptance of shares and votingrights of MC

Terms of Offer for MC

28

BCP Offers for Mundial-Confiança Group

O ffe r O ffe r M in. Purch. O ffe r

N umb er o f S hares O utstand ing (mn) 48.60 165.51 60.00 33.00

O ffer P rice P remium as a t 16 .0 7 .99 80.5% 40.0% 80.0% 40.0%

O ffer P rice per S hare (EU R) 50.1768 23.1560 26.1360 14.3500M ino rity shareho ld ings - 46.9% 5.6% 29.4%Equity va lue (EU R mn)

TO TAL less M a jo rity B lo ck s 2 ,4 3 9 1 ,7 9 9 8 8 1 3 9 4 ,4 6 5

MC BPSM BTA CPP Total

� On July 19, 1999 BCP announced offers for BPSM and CPP with a commoncondition: to gain acceptance of the majority of shares and voting rights

� Offer for BPSM: BCP will also launch a permanent bid for the acquisition of theminority shareholdings in BTA

29

Offer Prices and Share Price Trading History

MC BPSM

0

10

20

30

40

50

60

01/06/9820/07/9807/09/9826/10/9814/12/9801/02/9922/03/9910/05/9928/06/9916/08/9904/10/99

Pri

ce (

EU

R)

0

5

1 0

1 5

2 0

2 5

0 1/0 6 /9 8 2 0/0 7 /9 8 0 7/0 9 /9 8 2 6/1 0 /9 8 1 4/1 2 /9 8 0 1/0 2 /9 9 2 2/0 3 /9 9 1 0/0 5 /9 9 2 8/0 6 /9 9 1 6/0 8 /9 9 0 4/1 0 /9 9

Price

(EUR

)

Offer Price: EUR 50.1768Offer Price: EUR 50.1768

Offer Price: EUR 23.1560Offer Price: EUR 23.1560

80% Premium 80% Premium

40% Premium 40% Premium

30

Rationale of BCP Offers forMundial-Confian ça Group

Create the leading Portuguesefinancial institution

Strategicvalue

creation

Financialvalue

creation

Significant cost savings andrevenue enhancement

31

Strategic Value CreationConsolidating BCP´s leadership in the Portuguese financial system

� Attain leadership in all segments of the Portuguese bankingsector

� Strengthen leadership in the insurance business

� Develop and consolidate prominent positions in allspecialised financial activities

� Improve capacity to intervene in selected niches in specificforeign markets with no constraints

� Stronger position in the Iberian market in the currentcontext of industry consolidation

� Increase bargaining power within the internationalisationprocess

32

27.5%

19.5%

15.4%

19.7%

Inv e s tm e ntFunds

Ins urancePre m ium s

C us to m e rD e po s its

L o ans andA dv ance s

toC us to m e rs

2nd

3rd

1st

1st

BCP Group (June 1999)Market Share Ranking

BCP Group + MC Group (June 1999)Market Share Ranking

33.9%

34.3%

29.1 %

36.7 %

1st

1st

1st

1st

Leading Positioning in Banking, Insuranceand Specialised Financial Services ...

33

Improving BCP’s Capacity to Benefit fromthe Consolidation of Banking and Insurance

Iberian banks

Source:Annual reports 1998. INESE -1998 for Spanish insurers - Annual reports 1998 for Portuguese insurers Note: (1) Total Assets without consolidation of Insurance activities

By Total Assets (EUR bn)241.6

134.0

69.9

66.9

57.5

47.5

44.4

32.0

25.4

25.2

24.2

15.6

7.1

BSCH

BBV

Argentaria

La Caixa

BCP+MC

CGD

Caja Madrid

BCP (1)

BPSM

BES

Banco Popular

BPI

Banco Mello

1,9851,679

1,5741,374

1031972963

876848

706698698

623592

545543521

Mapfre

Generali

S&P+MC

Allianz

S&P

Winterthur

Axa seguros

Tranquilidade

Caifor

Fidelidade

Argentaria

Caixa Cataluna

Zurich

Caser

Caja Madrid

Mundial Confiança

Império

By Total Premiums (EUR mn)

34

BCP Group’s Business Model

Back OfficeBack Office

Products

Market Market

Subsidiaries

Distribution

Asset ManagementAsset Management

AF AF InvestimentosInvestimentos

InsuranceInsurance

SegurosSeguros e e PensõesPensões

Mortgage CreditMortgage Credit

BIIBII

Leasing/Factoring Leasing/Factoring

LeasefactorLeasefactor

ServiBancaServiBanca

CustomersCustomers

35

Asset ManagementAsset Management

AF AF InvestimentosInvestimentos

MC MC FundosFundos

InsuranceInsurance

SegurosSeguros e e PensõesPensões

Mortgage CreditMortgage Credit

BIIBII

Leasing/Factoring Leasing/Factoring

LeasefactorLeasefactor

MC FactorMC Factor

MC LeasingMC Leasing

BCP’s Experience and Business Model willAllow a Smooth Integration

Back OfficeBack Office

Products

Market Market

Subsidiaries

Distribution

CustomersCustomers

ServiBancaServiBanca

CustomersCustomers+

36

Improving EPS through Revenue Enhancement

NET COMMISSION INCOME PER BRANCH1998

(PTE million)

39.5

87 .7

B P SM B C P A tlâ n t i co

NET COMMISSION INCOME PER EMPLOYEE1998

(PTE million)

NON INTEREST INCOME/ TOTAL INCOME1998(%)

2.8

6.0

B P SM B C P A tlâ n t i co

28 ,2

43 ,9

BP SM BC P Atlântico

**

37

Time Line of BCP Offers18 June BCP announces intention to bid for Mundial Confiança Group8 July Insurance Institute of Portugal limits combined voting rights of

BSCH / António Champalimaud in Mundial Confiança Group to10%

19 July BCP announces amended offer for MC, offers for BPSM and CPP

26 July BCP shareholders approve capital increase for the offers21 September Bank of Portugal opposes to the agreement between BSCH and

Mr. António Champalimaud7 October MC minorities request an EGM to take resolution to sell MC’s

stake in BPSM to BCP8 October Bank of Portugal limits the voting rights at BPSM, CPP

and BTA to 10%22 October MC announces a new EGM

38

Time Line of BCP Offers

28 October BCP’s EGM to confirm the approval for the capital increase

2 November Registration of the offers

January 2000 Expected closing of the offers

18 June BCP announces intention to bid for Mundial Confiança Group8 July Insurance Institute of Portugal limits combined voting rights of

BSCH / António Champalimaud in Mundial Confiança Group to10%

19 July BCP announces amended offer for MC, offers for BPSM and CPP

26 July BCP shareholders approve capital increase for the offers21 September Bank of Portugal opposes to the agreement between BSCH and

Mr. António Champalimaud7 October MC minorities request an EGM to take resolution to sell MC’s

stake in BPSM to BCP8 October Bank of Portugal limits the voting rights at BPSM, CPP

and BTA to 10%22 October MC announces a new EGM

39

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