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Earnings Presentation – 4th Quarter 2008

DISCLAIMER

• This document is not an offer of securities for sale in the United States, Canada,Australia, Japan or any other jurisdiction. Securities may not be offered or soldin the United States unless they are registered pursuant to the US Securities Actof 1933 or are exempt from such registration. Any public offering of securities inthe United States, Canada, Australia or Japan would be made by means of aprospectus that will contain detailed information about the company andmanagement including financial statements

22

management, including financial statements

• The information in this presentation has been prepared under the scope of theInternational Financial Reporting Standards (‘IFRS’) project of BCP Group for thepurposes of the preparation of the consolidated financial statements underRegulation (CE) 1606/2002

• The figures presented do not constitute any form of commitment by BCP inregard to earnings


A particularly challenging year

Macroeconomic slowdown

Interest rates expected to continue low; increasing price of risk not entirely covered by the increase in spreads; asset prices

expected to continue depressed

Economic recession and increasing unemployment, affecting growth, earnings and impairments across the financial sector

Pressure over interest rates and asset prices

33

Financial sector subject to uncertainties and pressures

from multiple variables

Recent evolution of capital markets together with increasing refinancing needs represent a major challenge to access funding under attractive conditions (cost and term)

New “surprises” at international level are not to be excluded and uncertainty regarding the perspectives of short term economic recovery

Shortness of capital and liquidity

Overall uncertainty


A particularly challenging year: The Bank

1st Semester

“Bank Stabilization”

Priorities and Key InitiativesBank’s management focus:

Reestablishing institutional stability (General Meeting, May 27)

Strengthening of financial position:€1,300 million capital increase in AprilTwo issues of long-term corporate debt totaling €2,250

million in May

M2010 was drawn in April 2007 under a completely different market context

44

2nd Semester

“Management under market crisis”

Unparalleled deterioration of the international financial crisis implied “management under crisis” aiming at immediate results

Divestment of equity stakes (sale of BPI), portfolio

evaluation

Increase of liquidity contingency levels

Cost reduction

Adjustments to credit/liquidity risk pricing

context

After stabilization, it is now justified launching new Mbcp priorities for 2009


Millennium bcp is now prepared to face the challenges ahead

Fran

chis

e…Portugal: 2.6 million active clients; largest branch network (918)Poland: 7% market share in deposits and branches (4th largest network); 38% spontaneous awareness in 2008 (ranking 4th in awareness)Mozambique: market leader with 40% market share; national distribution network with >100 branchesGreece: 4% market share in branches; 15% client growth in 2008 (reaching ~500 thousand); 78% of clients highly satisfied

Capture of 174 thousand new retail clients in Portugal in 2008 Increase of on balance-sheet customer funds by ~ €3 billion

…strong, resilient retail…

…reinforced brand and identity

55

Client satisfaction index recovered and reached the highest level in the last 3 years

Presence in multiple geographies allowing for:Sharing of know-how and capture of synergies across platformsDiversification of risk and growth options

Reinforcement of Tier 1 from 5.5% in 2007 to 7.1% in 2008. With adoption of IRB advance, Tier 1 of 8.6%Improvement of management mechanisms and definition of liquidity and capital targets Deceleration of commercial gap and wholesale funding

Bank

…

…with a balanced portfolio …

…and reinforced capital and liquidity base


Highlights 2008

Portugal with recovery on core revenues growth and cost control

1

International operations with impact from current crisis2

Sustained volumes growth, mainly on deposits3

66

Sustained volumes growth, mainly on deposits3

Prudency on risk evaluation. Impairment increased to support current cycle and due to collateral revaluation4

5Adequate capital position and in line with annouced target. May issue non-dilutive Tier 1 instruments to meet future regulatory requirements


Agenda

GroupPortugalPolandMozambique

77

MozambiqueGreeceAngolaOther international operations


201.2

23.5

225.0563.3

426.2

586.8

FY07 FY08

Net income impacted by BPI stake and adverse market environment(Eur million)

-27.4%

Specific items* in 2008:- BPI stake (-€232.6m)- Reduction of variable

remuneration accrued in 2007 and restructuring costs (+€7.6m)

Net income

-64.3%

88

FY07 FY08

* Net of taxes

1,170.01,020.9

FY07 FY08

Operating profit before provisions

+14.6%

(Excluding specific items)


Positive intermediation margin performance in spite of adverse financial market conditions

(Eur million)

Quarterly net interest income

Dividends

Net interest income

Intermediation margin

1,721.11 537 3

36.827.9

1,565.21,757.9

+12.3%

434.8412.2444.4429.7

387.6

+14.7%

99

Net interest income

NIM

,1,537.3

2007 2008

+12.0%

4Q07 1Q08 2Q08 3Q08 4Q08

2.05% 2.11%2.01% 2.07% 2.00%2.06%2.09%


Core banking commissions growing yoy and qoq; lower capital markets related commissions

Capital markets related

(Eur million)

Commissions

221.7265.4

-3.6%

767.8 740.4

65.749.7

63.9 57.4 50.7

187.4185.3

-16.5%

199.3173.8

-6.0%

193.9

1010

Core banking business

Excluding specific items

518.7502.4

2007 2008

133.6 127.9124.1 130.0 136.7

4Q07 1Q08 2Q08 3Q08 4Q08

+3.2%

+2.3%


Resilient core revenues growth

(Eur million)

Core operating income(excluding financial market)

590.9605.7568.3 578.2560.7

2,343.12,186.1

+7.2%+5.4%

*

1111

Core operating income: Net interest income + Dividends + Banking related commissions and other operating income


* Dividends: € 27.6 million

4Q07 1Q08 2Q08 3Q08 4Q082007 2008


Strong cost control in an expansion year; qoq demonstrates focus on efficiency

Depreciation

Administrative

Operating costs(Eur million)

642.6

112.8

627.4

114.9

+3.3%

1,681.0

34.9 26.327.8 28.4 30.3

161.6146.9 169.2164.9181.7

429.1 416.4433.8 403.5-1.8%

+2.4%

432.0

-4.0%1,626.7

1212Excluding specific items

Staff

+175

+1,467

Cost-to-income ratio

925.6884.4

2007 2008

216.9239.3230.3 239.1217.2

4Q07 1Q08 2Q08 3Q08 4Q08

+4.6%

58.6%60.3%-1.7pp

Number of branches* 1,8031,628

Number of employees 22,58921,122

* Net of closures


Double digit growth in volumes in both loans and on balance-sheet funds

Loans to customers *(gross)

(Eur million)

Customers’ funds

On BS customers’28 538

+10.4%

66,873

63,953

+3.6%66,264

73,849

1313

45,35551,682Mortgage

Consumer loans

Loans to companies

* Excluding securitized loans not presented in the balance sheet and securities reclassified as credit** Includes: deposits, certificates of deposits and debt securities placed with customers

Off BS customers’ funds

customers funds **

14.58218.598

Dec07 Dec08

36,725 40,434

4,877

25,50328,538

4,645

Dec07 Dec08

+13.9%

Securitized loans 3,126 2,625

+10.1%

+5.0%

+11.9%


151 6

Credit quality*

Credit quality deteriorating in line with current economic cycle, and increasing cost of risk mainly due to lower market value of collaterals

Impairmentcoverage > 90 days

Overdueratio > 90 days

211.1%

(Eur million)

251.8%

851.1

0.7% 1.0%

0 91 0.94

1.27

Impairment charges as % of total loans*(annualized)

Gross impairment

charges as % of total loans

1414

485.5699.5

151.6

69.1

Dec07 Dec08

Total overdue

< 90 days

> 90 days

554.6 1.11

0.52

0.77

0.40

0.74

0.850.91

0.48

0.94

4Q07 1Q08 2Q08 3Q08 4Q08

Impairment net of recoveries as % of total loans

Prudence in the revaluation of potential risks due to depressed market environment

* Excluding financial assets


Credit quality and coverage*

Portfolio Overdue >90 days Impairment

Overdue >90 days / Total

loansCoverage

Individuals 260 414 0.8% 159.6%

Mortgage 112 209 0.4% 186.5%

Consumer 148 205 3.0% 139.3%

(Eur million)

1515

Companies 440 1,063 1.1% 241.5%

Services 81 320 0.6% 395.2%

Commerce 90 170 1.7% 188.5%

Others 269 573 1.2% 213.1%

Total 700 1,477 1.0% 211.1%



Gross impairment and recoveries

233.9

165.9 154.5151.8

+54.1%

Gross impairment

-54.2%

Recoveries

(Eur million)

1616

83.2

4Q07 1Q08 2Q08 3Q08 4Q08

29.829.813.4 19.865.1

4Q07 1Q08 2Q08 3Q08 4Q08


Liquidity positionWholesale funding

(Eur billion)

2.6

4.74 00.0

Maturity

Refinancing needs of long term debtCurrent highly liquid asset portfolio allows to obtain additional €5bn from ECBTotal portfolio of ECB collateralexpected at year end 2009 of around €9bn

1717

1.6

0.5 4.0

1Q09 2Q09 3Q09 4Q09 FY09 FY10

around €9bnAlready issued €1.5bn with State guaranteeState guaranty available of €2.5bn


Commercial gap evolution

Loans / On balance sheet funds

151%147%

143%

1818

Improvement of 8percentage points

2006 2007 2008


Pension Fund – prudence on changing actuarial assumptions

588

7651,568

572

+293

+797 +27 -402+112 -40

Actuarial losses

Corridor

Outside corridor

Fully fundedEffective return of the fund: -14%

(Eur million)

1919

Dec07 Expected

return

Asset

devaluation

Non financial

losses

Chg in

discount rate

Chg mortality

table women

Amortization Dec08

Capital impact: 2008

Change in actuarial losses 827.4

Expected return of the fund (293.2)

Deferred for capital purposes 534.2

Annual amortization estimate for the next 4 year 133.5

Actuarial Assumptions 2007 2008

Increase in future compensation levels 3.25% 3.25%

Pensions increase rate 2.25% 2.25%

Projected rate of return of fund assets 5.50% 5.50%

Discount rate 5.25% 5.75%

Mortality tables

Men TV 73/77 - 1

year

TV 73/77 - 1

year

Women TV 88/90 TV 88/90 - 2

years


7.1%

Core Tier 1 - Perspective

Core Tier 1

Tier 1

4.3%

Total

5.5%

9.6%

6.5%

7.8%

11.2%

5.8%

10.5%

Solvency ratio

(Eur million)

7.3%

8.6%

12.4%Estimated impact of the implementation

of IRB Advanced (Basel II)***:

Core Tier I: +156bpTier I: +148bpT t l 195b

*

2020

Core Tier 1

RWA** 61,687 66,976

3,8853,8854,364

2,752

Dec07 Sep08 Dec08 Dec08

67,426

* According to the criteria of the Bank of Portugal, Core Tier 1 excludes the deduction related to financial stakes. Figures presented on a comparable basis ** RWA = Risk Weighted Assets*** Assuming a cap of 20% that will be in place for 2009

Proforma with IRB Advanced

Total: +195bp

53,072


Re-affirmed credit ratings by all rating agencies

Short term Long term Outlook

Moody's P-1 Aa3 Stable

2121

Standard and Poor's A-1 A

Fitch Ratings F1 A+ Stable

Negative


Agenda


2222

MozambiqueGreeceAngolaOther International operations


Net income and operating profit

(Eur million)(Eur million)

332.3474.4

-29.9%

Net income

893.0769.1

+16.1%

Operating profit before provisions

2323

FY07 FY08


FY07 FY08


Strong net interest income performance

(Eur million)

299.7308.0

297.3290.2


1,195.21,103.7

29.327.5

1,131.21,224.4

Dividends

Net interest income

Intermediation margin

+8.2%+15.5%

+8.3%

2424

266.7

4Q07 1Q08 2Q08 3Q08 4Q08FY07 FY08

1.81% 1.89%1.70% 1.82% 1.75%1.82%NIM 1.82%


1 32

2.13 2.232.08 2.04

1.691.57 1.54

1.99

1.56

2.48

Credit repricing reflects market conditions

3.45

2.39

3.683.43 3.49

0.920.880.90

1.090.95

Term deposits

Demand deposits

Spreads on corporate loans(%)

Spreads on mortgage loans(%)

Spreads on deposits(%)

Retail SME

Corporate SME

* *

2525

1.32

0.940.951.030.93

4Q07 1Q08 2Q08 3Q08 4Q08

0.721.04 0.95 0.91 0.89

4Q07 1Q07 2Q07 3Q07 4Q074Q07 1Q08 2Q08 3Q08 4Q08

p

Large corporates

* Excluding liquidity premium as shownin previous quarters


Yoy lower commissions mainly reflect adverse financial markets; increase of core commissions qoq

181.5 160.5

-5.0%

562.8 534.9


42.332.3

48.4 42.7 37.1

143.8 134.1 138.1-11.6%

141.7

(Eur million)

118.9

Commissions

-2.5%

2626

374.4381.3

FY07 FY08

99.4 91.486.6 95.4 101.0

4Q07 1Q08 2Q08 3Q08 4Q08

-1.8%


Core banking business +1.6%


Core revenues continues to show growth even in this extremely difficult environment(Eur million)

410.5397.6439.5404.8398.5

1,652.41,608.1

Core operating income(excluding financial market)

+3.0%

*

+2.8%

2727

4Q07 1Q08 2Q08 3Q08 4Q08FY07 FY08

Core operating income: Net interest income + Dividends + Banking related commissions and other operating income


* Dividends: €27.3 million


614.2

377.4

66.9

623.3

407.3

69.4

Decreasing operating costs in spite of the broader branch network; good evolution of cost-to-income ratio

-3.8%1,058.5

Staff

Depreciation

Administrative

17.4 17.0 16.8 16.7 16.4

144.3 157.1155.2 161.0 140.9

111.8 97.395.1

92.5 92.5

275.1 252.4266.3273.5

-3.5%

-7.4%

-1.5%

(Eur million)

264.7

Operating costs-7.7%

1,100.0

2828

10,66710,821

FY07 FY08

FY07 FY08 4Q07 1Q08 2Q08 3Q08 4Q08


Cost-to-income ratio 53.7%57.3%

-3.6pp

918885

FY07 FY08

+33-154

Number of employees Number of branches*

* Net of closures. New branches opened during 2008 of 51


38 692

Sustain volume growth, supported in on BS funds

Mortgage

Loans to customers *

(gross)

20,89319,858

+6.6%

55,194

51,380

+1.8%

Customers’ funds

(Eur million)

52,322

58,861

On BS customers’

+10.0%

+5.5%

2929

35,174 38,692

16,206 13,630

Dec07 Dec08

Mortgage

Consumer loans

Loans to companies

* Excludes securitized loans and securities reclassified as credit

32,178 34,811

3,1573,158

Dec07 Dec08

Off BS customers’ funds

funds

Securitizedloans

3,126 2,625

+8.0%

-0.2%


Prudent approach to a depressed economy

Credit quality*



251.3%

(Eur million)

317.3%

597.9

0.6% 0.8%

1 180 891.03

1.07

1.38

Impairment charges as % of total loans

(annualized)

Gross impairment charges as % of

total loans

3030

312.1477.0

120.9

53.3

Dec07 Dec08

Total overdue

< 90 days

> 90 days

365.41.18

0.56

0.87

0.42

0.77

0.89

0.50

.

4Q07 1Q08 2Q08 3Q08 4Q08


Conservative review of portfolio risk to account for depressed market environment



Credit quality and coverage*

Portfolio Overdue >90 days Impairment

Overdue >90 days / Total

loansCoverage

Individuals 156 293 0.6% 188.4%

Mortgage 97 188 0.5% 194.5%

Consumer 59 105 1.9% 178.5%

(Eur million)

3131

Companies 321 906 0.9% 281.7%

Services 76 312 0.6% 409.3%

Commerce 75 149 1.8% 197.7%

Others 170 445 0.9% 261.7%

Total 477 1,199 0.8% 251.3%



Gross impairment and recoveries

203.3152.9

71.0129.5141.7

+43.4%

Gross impairment

64 3

-54.9%

Recoveries

(Eur million)

3232

4Q07 1Q08 2Q08 3Q08 4Q08

29.028.212.0 17.364.3

4Q07 1Q08 2Q08 3Q08 4Q08


Agenda


3333


Exchange rate: fixed exchange rate was used for comparison purposes

(Balance sheet: 1€ =4.1535 PLN; P/L: 1€ = 3.50572917 PLN)


Resilient performance in a less favorable environment; strengthened operating income performance reflects sound core business


29.4131.7

+11.9%

Net income

471 6

55.798.8

487.6 527.3Trading + other

+8.1%

Operating income

- Loss on options with Clients

(-43.4m)- Dividends from Visa

(+7.1m)

147.3

-10.4%

3434

117.9

FY07 FY08

471.6388.8

FY07 FY08

Financial margin+ commissions

+21.3%

* Proforma data. Margin from all derivatives hedging FX denominated loan portfolio is presented in Net Interest Income, whereas inaccounting terms part of this margin is presented in Result on Financial Operations

*

- Tax effect (+6.9m)


Strong net interest income growth, benefiting from both volume and price trends …

(Eur million)

337.0

233.9

Net interest income

Financial Margin

+44.1%

36.475.1

-13.1%

154.9134.6


-51.4%

Commissions

3535

FY07 FY08

3.1% 3.4%NIM

98.279.9

FY07 FY08

+22.9%Core banking business


173.7

145.525.2

20.7

153.7

123.0

Improved profitability although operating costs reflect the expansion plan

+12.6%

301.9339.9

Staff

Depreciation

Administrative

11.23.7

6.2

43 343 142 5 44.841 6

36.132.3 40.237.035.4

5.6 5.288.2

78.485.7 86.1

-18%

+18%

+13%

89.7

(Eur million)

Operating costs

3636

7,0496,067

YE2007 YE2008

153.7

FY07 FY08

Staff 43.343.142.5 44.841.6

4Q07 1Q08 2Q08 3Q08 4Q08

+13%

Cost to income ratio

64.5%61.9% +2.6pp

490410

YE2007 YE2008

+80+982

Number of employees Number of branches


102.6%95.1%

Dec07 Dec08

Sustained volume growth

Loans to Customers *

(net)

+53.2%

D i

(Eur million)

8,125

5 303

Loans to deposits ratio

3737

Mortgage

Consumer loans

Loans to companies

* Includes securitized loans

1,715 2,196

594

3,152

5,336

436

Dec07 Dec08

5,2497,662

Dec07 Dec08

Deposits5,303

+46.0%


Credit Quality

Stable asset quality and cost of risk

Impairmentcoverage

Impairmentratio

79%

3.4%

(Eur million)

3.4%

67%

Impairment charges as % of Total Loans(YTD)

0 45

0.52


3838

184

280

Dec07 Dec08

Total Impaired loans

0.450.35

0.20 0.31

4T07 1T08 2T08 3T08 4T08


Strong market share growth, especially in deposits from individuals

Market shares evolution

Deposits from Individuals 7.1%Corporate Deposits 3.8%Total Deposits 5.6%

Millenni m M t al F nds 2 2%

Dec. 2007 Dec. 2008

5.2%4.0%

4.6%

3 7%

57

6

12

Ranking (Sep.08)Dec. 2006

4.0%3.7%

3.9%

3 6%

3939* Ranking in number of credit cards

Corporate Loans 3.2%of which Leasing (sales) 6.0%

Total Loans 5.4%

3.2%

6.3%4.8%

8

45

Millennium Mutual Funds 2.2%3.7% 12Loans to Individuals 7.4%

of which Mortgage loans 11.5%of which Cards loans 5.6%

6.6%

11.2%5.5%

426 *

3.4%

6.2%4.3%

3.6%

5.4%

9.8%4.9%


Mortgage loans instalment sensitivity to FX and interest rate changes

ILLUSTRATIVE EXAMPLE

700

800

900

1,000

1,100

1,200

J-08 M-08 M-08 J-08 S-08 N-08 J-09

Evolution of Monthly Instalment in PLN

Initial Loan Amont (PLN) 200,000

Initial Loan Amont (CHF) 87,336

Date of Dirbursement (PLN) Jan-08

Tenor (months) 360

Spread 1.30%

Initial 2.76%

Current* 0.67%

Initial 2.3

Market Rate (Libor 90d)

Exchange Rate

Highest instalment in Dec 08Illustrative

4040* As of 31st January 2009

** As of 11 February 2009

The impact from the recent sharp decrease of the CHF interest rates more than compensated the PLN depreciation

Current** 2.8Exchange Rate

Initial 924.5

Current 919.3Monthly Installment (PLN)

Evolution of Exchange Rate and Reference Rate

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

Jan08 Mar08 May08 Jul08 Sep08 Nov08 Jan09

1.0

1.5

2.0

2.5

3.0

Libor CHF 90d

PLN/CHF


Agenda


4141



Strong performance in a less favorable world economy


51.541.4

+24.6%

19.314.6

100.3120.0

Trading + Other +32.2%

+19.5%

Net income Operating income

4242

FY07 FY08

100.685.7

FY07 FY08

Financial margin+ Commissions

+17.4%


Strong net interest income and commissions growth

(Eur million)

78.1

67.1

Net interest income

Financial margin

+16.5%22.5

18.6

Commissions

+20.7%

4343

FY07 FY08

11.0% 10.3%NIM

FY07 FY08


21.87.3

6.7

19.2

Operating costs under control and reflecting the expansion plan

+11.0%

48.954.3

Depreciation

Administrative

-7.2%

+13.4%

(Eur million)

Operating costs

1,7621,595+167

Number of employees

4444

25.822.4

FY07 FY08

Staff+14.8%

10085

YE2007 YE2008

+15

Number of branches


Sustained volume growth with improved credit quality

Mortgage

Consumer loans

Loans to customers (gross)

12224

25

75

+34.1%

804

653

Deposits(Eur million)

506

378

+23.2%

4545

loans

Loans to companies

279359

Dec07 Dec08

Dec07 Dec08414%

1.2% 0.8%

537%Impairmentcoverage > 90 days



Agenda


4646



Earnings affected by focus on liquidity, impacting on spreads on deposits and disbursements of new loans for the year(Eur million)(Eur million)

22.1

15.1

-31.4%

9.812.5

157.1 167.8Trading + Other

+6.8%

Net income Operating income

4747

FY07 FY08

158.0144.6

FY07 FY08

+9.3%Financial margin+ Commissions


Solid financial margin growth despite price competition on deposits and impact of wider Euribor-ECB gap on loan portfolio

(Eur million)

31.4 31.4 31.131.032.5


116.5 126.0

Net interest income

+8.1%

Financial margin

4848

4Q07 1Q08 2Q08 3Q08 4Q08

NIM(YTD) 2.70% 2.47% 2.26% 2.19%

Dec07 Dec08

NIM 2.46% 2.27% 2.17%


3.18

3.45

2.10 1.942.45 2.38

Improving spreads on credit

(Eur million)

3.683.403.89

1 91

3.57

1.58

Current DepositsRevolving

Spreads on business loans(%)

Spreads on mortgage loans(%)

Spreads on deposits(%)

4949

1.99 1.941.96 1.89

4Q07 1Q08 2Q08 3Q08 4Q08-1.08

1.91

-0.200.050.050.25

4Q07 1Q08 2Q08 3Q08 4Q08

0.870.871.040.91

4Q07 1Q08 2Q08 3Q08 4Q08

Term Deposits

Fixed term


Sustained commission performance

28.232.1

+13.9%

(Eur million)

9.27.6 8.1 7.4

9.0

Commissions

5050

FY07 FY08 4Q07 1Q08 2Q08 3Q08 4Q08


62.3

54.97.8

9.1

54.0

50.8

112.5126.3

Operating costs increasing due to expansion plan

+12.3%

St ff

Depreciation

Administrative 2.02.2 2.3 2.3 2.3

16 315 514 7 15 814 3

13.911.5 15.613.815.7

32.0 28.5 31.6 32.0 34.2+17.3%

+8.1%

+15 5%

(Eur million)

Operating costs

5151

FY07 FY08

Staff 16.315.514.7 15.814.3

4Q07 1Q08 2Q08 3Q08 4Q08

+15.5%

1,411 1,554

YE2007 YE2008

+143

165 178

YE2007 YE2008

+13

Number of employees Number of branches


Investing in the build-up of the retail franchise

71.6% 75.3%

Cost to income ratio

41.544.6

-7.0%

Operating Profit before provisions(Eur million)

5252

FY07 FY08 FY07 FY08


Reduced commercial liquidity gap

Loans to customers *

(gross)

4,848

+20.9%

+22.9 %

Customers’ deposits

(Eur million)

5353

Mortgage

Consumer loans

Loans to companies

* Includes securitised loans

1,580 1,873

799

1,6632,176

767

4,010

Dec07 Dec08

2,6413,246

Dec07 Dec08


Credit quality

Lower cost of risk, resulting from improved collection process, limited the P&L impact of deteriorating economic conditions



64.7%

1.7%

(Eur million)

2.1%

53.8%

Impairment charges % average total loans

Improved collection process

5454

100.9

5.0

67.4

3.9

71.4

105.9

FY07 FY08

days

Total overdue

< 90 days

> 90 days

0.370.42

0.35

2006 2007 2008


Substantial customer and deposit acquisition in 2008,focus on deposit-gathering to continue in 2009

6-month time deposit with interest of up to 6.25% from a minimum of 10,000 euros to a maximum of 400,000 euros

More than502,000 Customers

(+67,000 from end-07)

New record highs:

3-month time deposit with interest of up to 6% for new funds from a minimum of 10,000 euros to a maximum of 400,000 euros

5555

IKEA credit card, mainly aimed at Customer acquisition. Allows purchases at IKEA stores to be split in installments with preferential interest

Payroll programme featuring preferential interest on loans, an overdraft facility, a 24-hour over-the-phone medical assistance service and a credit card with no annual fee

More thanEUR 3.2 billion in

deposits(+EUR 605 million from

end-07)


Agenda


5656



Angola: Strong volume growth on the back of solid macro performance

Highlights

Strong volume growth

Results affected by branch expansion plan

Partnership with Sonangol and BPA

Volumes

Loans to customers

119219

FY07 FY08

+84.1%

Customers’ funds

150279

FY07 FY08

+86.0%

(Eur million)

5757

Partnership with Sonangol and BPA will boost growth

Angola is one of the fastest growing economies in the world

Net profit Branches

5.0 4.4

FY07 FY08

9

16

FY07 FY08


Agenda


5858



Romania: Encouraging initial figures and good market acceptance

Highlights

Lower than expected net loss driven by operating costs savings

Highly accepted by clients

Continuous strong origination of new

Volumes

Loans to customers Customers’ funds

236

38

FY07 FY08

38

105

FY07 FY08

(Eur million)

+174.2%

5959

Continuous strong origination of new clients

Some risk on macro going forward but Romania is a high growth banking market on the medium/long term

Net profit Branches

40

65

FY07 FY08

* Including costs accounted at BCP

*

-34.9-26.4

FY07 FY08

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US: Impact from crisis in US

Highlights

Community Bank focused primarily on the Portuguese, Greek and Brazilian ethnic groups

Global liquidity crisis and sharp reduction on interest rates in US affecting deposit’s volume and

i

Volumes

Loans to customers

417468

FY07 FY08

+12.2%

Customers’ funds

478528

FY07 FY08

-9.6%

(Eur million)

6060

margins

Positive performance of operating profit (from –0.5 m€ in 2007 to +0.9 m€ in 2008)

Negative impact from US economy recession reflected in significant increase of loan impairment provision

Net profit Branches

18 18

FY07 FY08

-0.5

-6.1

FY07 FY08


Turkey: recovery under way

Highlights

Main focus on cost control and rebalancing the loan portfolio

Strong growth in customers loans in local currency (+20.2%). Impact from devaluation of Turkish lira

Volumes

Loans to customers Customers’ funds

(Eur million)

412429

FY07 FY08

-3.9%

461

706

FY07 FY08

-34.6%

6161

devaluation of Turkish lira

Market continues thorny on customers funds

Net income benefited from sale of headquarters building

Net profit Branches

1618

FY07 FY08

1.8

-0.8

FY07 FY08


Recovering performance in Portugal and prudently preparing for a difficult year

Strong volume growth particularly in Deposits and other balance sheet customers funds

International Business – Strong growth but profitability reduced

Conclusion

6262

International Business Strong growth but profitability reduced due to market conditions

Stable liquidity position, with adequate capital position

Adequate strategy to the current business environment with focus on efficiency, risk control and retail oriented


Soundness and Trust

Priorities for 2009

1. Proactive and rigorous risk management

2. Integrated and prudent liquidity and capital management

3. Deep commitment to clients and maximization of

Stronger Commitment

6363

Commitment and Performance

Sustainability and Value

funds and results

4. Acceleration of cost reduction and organizational streamlining

5. Adjustment of business models and materialization of growth opportunities

6. Talent management and employees mobilization


Five key principles for a new Program “Rumo ao Futuro”

Bank with long-lasting relationships – focus on relationships (more than on products and transactions), increase proximity and frequent contact with clients, long term commitment

“Commitment to clients”

Bank with strong risk management and capital optimization capabilities– effective use of capital and liquidity, proactive risk perspective, strengthening of credit decision processes, rigorous operational risk control

“Effective risk management”

Leaner simpler and more cost-effective bank along organizational“Si li it d

6464

Leaner, simpler and more cost-effective bank – along organizational structure, internal processes, relationship with clients, business lines, and even product and services offer

“Simplicity and efficiency”

Bank with options – portfolio with operations where the Bank can “make a difference” and add value, which contribute to growth, risk diversification and value creation for the Group in the long term

“Diversified international

presence”

Bank focused on its capabilities – bank focused on its distinctive capabilities, which may constitute competitive advantages: retail/commercial banking, branch network based distribution, employees experience and know-how across geographies

“Focus on capabilities”


Appendix

6565

Appendix


Qualified Shareholdings according to shareholders information

Share capital : 4,694,600,000 shares

Sonangol 469,000,000 9.99% Eureko Group (1) 331,956,248 7.07% Grupo Teixeira Duarte (2) 329,755,255 7.02% Berardo Group (3) 292,141,478 6.22% Banco Sabadell 208,177,676 4.43% Caixa Geral Depósitos Group 177,607,866 3.78%

Number of Shares % Capital

6666

Caixa Geral Depósitos Group , ,Grupo EDP (4) 152,075,727 3.24% Sogema 125,766,734 2.68% Privado Financeiras 109,461,901 2.33% Stanley Ho Group 106,254,934 2.26% SFGP - Investimentos e Participações 102,062,855 2.17%

Total 2,404,260,674 51.21%

(1) Although Eureko has entered into a series of derivative transactions with JP Morgan regarding 135,238,429 BCP shares, the PortugueseSecurities Market Commission (CMVM) considers that the voting rights inherent to those shares should be attributed to Eureko, thus increasing itsparticipation to 9.95% of total voting rights. (2) Teixeira Duarte- Sociedade Gestora de Participações Sociais, S.A. informed, through anannouncement dated December 12, that its subsidiary Teixeira Duarte – Gestão de Participações e Investimentos Imobiliários, S.A. has agreed toacquire 102,483,872 BCP shares from C+P.A. - Cimentos e Produtos Associados, S.A., and therefore the voting rights related to those sharesshould be attributable to the former (3) The shares and voting rights held by Fundação José Berardo and Metalgest are subject to reciprocalimputation. Therefore, Metalgest stake, 64,106,512 shares, was included (4) EDP Pension Fund held 52,805,044 BCP shares, corresponding to1.125% of the bank share capital


Financial Statements

6767

Financial Statements


Consolidated Balance SheetAt 31 December, 2008 and 2007

2008 2007

Assets

Cash and deposits at central banks 2.064.407 1.958.239 Loans and advances to credit institutions Repayable on demand 1.048.348 820.699 Other loans and advances 2.892.345 6.482.038

Loans and advances to customers 75.165.014 65.650.449Financial assets held for trading 3.903.267 3.084.892 Financial assets available for sale 1.714.178 4.418.534 Assets with repurchase agreement 14.754 8.016 Hedging derivatives 117.305 131.069 Financial assets held to maturity 1.101.844 - Investments in associated companies 343.934 316.399 Non current assets held for sale 19.558 24.180 Property and equipment 745.818 699.094 Goodwill and intangible assets 540.228 536.533 Current tax assets 18.127 29.913 Deferred tax assets 586.952 650.636 Other assets 4.147.645 3.355.470

94.423.724 88.166.161

(Thousands of Euros)

6868

Liabilities

Amounts owed to central banks 3.342.301 784.347 Amounts owed to others credit institutions 5.997.066 8.648.135 Amounts owed to customers 44.907.168 39.246.611Debt securities 20.515.566 26.798.490Financial liabilities held for trading 2.138.815 1.304.265 Other financial liabilities held for trading at fair value through results 6.714.323 1.755.047

Hedging derivatives 350.960 116.768 Provisions for liabilities and charges 221.836 246.949 Subordinated debt 2.598.660 2.925.128 Current income tax liabilities 4.826 41.363 Deferred income tax liabilities 336 46 Other liabilities 1.383.633 1.399.757

Total Liabilities 88.175.490 83.266.906

Equity

Share capital 4.694.600 3.611.330 Treasury stock (58.631) (58.436) Share premium 183.368 881.707 Preference shares 1.000.000 1.000.000 Fair value reserves 214.593 218.498 Reserves and retained earnings (274.622) (1.598.704)Profit for the period attributable to Shareholders 201.182 563.287

Total Equity attributable to Shareholders of the Bank 5.960.490 4.617.682


Consolidated Statement of IncomeAt 31 December, 2008 and 2007

2008 2007

Interest income 5.269.597 4.332.187 Interest expense (3.548.549) (2.794.884)

Net interest income 1.721.048 1.537.303

Dividends from equity instruments 36.816 27.921 Net fees and commission income 740.417 664.583 Net gains / losses arising from trading and hedging activities 277.631 199.138 Net gains / losses arising from available for sale financial assets (259.532) 193.211 Other operating income 57.580 97.861

2.573.960 2.720.017

Other net income from non banking activity 17.390 12.925

Total operating income 2.591.350 2.732.942

St ff t 915 307 1 006 227

(Thousands of Euros)

6969

Staff costs 915.307 1.006.227 Other administrative costs 642.641 627.452 Depreciation 112.843 114.896

Operating costs 1.670.791 1.748.575

920.559 984.367

Loans impairment (544.699) (260.249) Other assets impairment (60.024) (45.754) Other provisions 15.500 (49.095)

Operating profit 331.336 629.269

Share of profit of associates under the equity method 19.080 51.215 Gains from the sale of subsidiaries and other assets (8.407) 7.732

Profit before income tax 342.009 688.216 Income tax Current (44.001) (73.045) Deferred (39.997) 3.475

Profit after income tax 258.011 618.646

Attributable to: Shareholders of the Bank 201.182 563.287 Minority interests 56.829 55.359

Profit for the period 258.011 618.646


Consolidated Statement of Income (Quarterly Evolution)

At 31 December, 2008 and 2007

∆(Millions of euros) Δ %

08 / 07

Net interest income 388 412 430 435 444 1,721 1,537 12%

Dividends from equity instruments 5 2 28 - 0 8 37 28 32%Net fees and commission income 199 174 194 185 187 740 768 - 4%Other operating income 35 30 18 16 2 67 119 - 44%Net inc. from trading activity 27 36 52 50 148 286 196 46%

Operating income 654 654 721 685 790 2,851 2,648 8%

Staff costs 217 230 239 239 217 926 884 5%Other administrative costs 182 147 165 162 169 643 627 2%Depreciation 35 26 28 28 30 113 115 - 2%

Operating costs 434 404 432 429 416 1,681 1,627 3%

Year-to-dateQuarterly

Q4 07 Dec 07Dec 08Q4 08Q3 08Q2 08Q1 08

7070

(*) In 2007, Q2 : general tender offer over BPI commissions (88.7 - 23.2);Q3 : restructuring costs (12.3 - 3.3);Q4 : merger project with BPI commissions (14.5 - 3.8), restructuring costs (109.5 - 29.0), gains from the sale of EDP and

Sabadell (290.2 - 17.6), BPI and other impairment (94.0 - 14.3), asset revaluations (13.4 - 3.5) and contingencies (47.5 - 6.6).In 2008, Q1 : BPI impairment (151.3 - 20.0) and 2007 variable annual remuneration reversal (18.0 - 4.8);

Q2 : BPI impairment (50.9 - 6.7); Q3 : BPI impairment (44.7 - 5.9);Q4 : BPI impairment (21.1 - 2.8) and restructuring costs (7.8 - 2.1).

Operating costs 434 404 432 429 416 1,681 1,627 3%

Operating profit before provisions 220 251 289 256 374 1,170 1,021 15%

Equity accounted earnings 9 14 14 7 - 17 19 51 - 63%Loans impairment (net of recoveries) 87 70 136 135 204 545 260 109%Other provisions 3 3 - 9 20 31 45 34 31%

Profit before income tax 139 192 176 109 122 600 778 - 23%

Income tax 16 43 29 12 33 117 136 - 14%Minority interests 14 17 16 18 6 57 55 3%

Net income before spec. items 108 133 131 80 83 426 587 - 27%

Specific items (*) 51 - 118 - 44 - 39 - 24 - 225 - 24 >500%Net income 160 15 87 41 59 201 563 - 64%


Consolidated Statement of Income (National and International Operations)

At 31 December, 2008 and 2007

(EUR Thousands, except percentages)

Dec08 Dec07 ? % Dec08 Dec07 ? % Dec08 Dec07 ? % Dec08 Dec07 ? % Dec08 Dec07 ? % Dec08 Dec07 ? % Dec08 Dec07 ? %

Interest income 5,270 4,332 21.6% 3,952 3,431 15.2% 1,318 901 46.2% 711 425 67.1% 100 86 17.3% 377 271 39.3% 130 120 8.3%Interest expense 3,549 2,795 27.0% 2,757 2,327 18.5% 792 468 69.3% 431 222 94.4% 22 18 20.1% 251 154 62.9% 88 73 19.4%Net interest income 1,721 1,537 12.0% 1,195 1,104 8.3% 526 434 21.3% 280 204 37.4% 78 67 16.5% 126 116 8.1% 42 46 -9.4%

Dividends from equity instruments 37 28 31.9% 29 27 6.5% 8 0 >200% 7 0 >200% 0 0 >200% 0 0 111.1% 0 0 31.2%Intermediation margin 1,758 1,565 12.3% 1,224 1,131 8.2% 533 434 22.9% 287 204 40.7% 78 67 16.5% 126 117 8.2% 42 46 -9.4%

Net fees and commission income 740 768 -3.6% 535 563 -5.0% 206 205 0.3% 135 143 -6.1% 22 19 20.7% 32 28 13.9% 16 15 10.3%Other operating income 67 119 -43.8% 54 96 -44.0% 13 23 -43.3% 2 15 -86.0% 5 3 43.6% 2 5 -64.4% 4 0 >200%Basic revenue 2,565 2,452 4.6% 1,813 1,790 1.3% 752 662 13.6% 424 362 17.1% 106 89 18.4% 160 150 6.8% 63 61 2.4%

Net inc from trading activity 286 196 45 9% 139 80 74 1% 148 117 26 6% 99 87 13 7% 14 11 28 4% 8 7 6 1% 26 11 146 2%

Millennium bim (Moz.)

International operations

Group Portugal Total Bank Millennium (Poland) Millennium Bank (Greece) Other int. operations

7171

Net inc. from trading activity 286 196 45.9% 139 80 74.1% 148 117 26.6% 99 87 13.7% 14 11 28.4% 8 7 6.1% 26 11 146.2%Operating income 2,851 2,648 7.7% 1,951 1,869 4.4% 900 779 15.5% 523 449 16.4% 120 100 19.5% 168 157 6.8% 89 72 23.6%

Staff costs 926 884 4.6% 614 623 -1.5% 311 261 19.2% 174 142 22.2% 26 22 14.8% 62 54 15.5% 50 43 16.6%Other administrative costs 643 627 2.4% 377 407 -7.4% 265 220 20.6% 142 112 26.1% 22 19 13.4% 55 51 8.1% 47 38 24.5%Depreciation 113 115 -1.8% 67 69 -3.4% 46 45 0.7% 20 23 -12.6% 7 7 -7.2% 9 8 17.3% 10 7 32.3%Operating costs 1,681 1,627 3.3% 1,058 1,100 -3.8% 623 527 18.2% 335 277 20.9% 54 49 11.0% 126 112 12.3% 107 88 21.3%

Operating profit bef. imp. 1,170 1,021 14.6% 893 769 16.1% 277 252 10.0% 188 172 9.3% 66 51 27.7% 42 45 -7.0% -18 -16 11.3%

Equity accounted earnings 19 51 -62.7% 19 51 -62.7% 0 0 0 0 0 0 0 0 0 0

545 260 109.3% 470 220 113.5% 75 40 86.3% 37 17 125.1% 1 6 -75.7% 16 15 12.5% 19 3 >200%

Other provisions 45 34 31.0% 41 33 25.3% 3 1 199.1% 2 1 54.7% 1 0 >200% 0 0 -15.0% 0 0 >200%Profit before income tax 600 778 -22.9% 401 567 -29.3% 199 211 -5.5% 149 154 -3.5% 63 46 38.4% 25 30 -16.5% -38 -19 98.9%

Income tax 117 136 -14.0% 70 94 -25.4% 47 42 11.6% 31 32 -4.8% 11 4 189.9% 10 8 26.8% -5 -2 149.8%Minority interests 57 55 2.7% -2 -1 69.4% 58 56 3.7% 0 0 1 0 11.3% 0 0 16.3% 58 56 3.7%Net income before spec. items 426 587 -27.4% 332 474 -29.9% 94 112 -16.5% 118 122 -3.2% 52 41 24.6% 15 22 -31.4% -91 -73 24.5%

Specific items -225 -24 >200% -225 -24 >200% 0 0 0.0% 0 0 0.0% 0 0 0.0% 0 0 0.0% 0 0 0.0%Net income 201 563 -64.3% 107 451 -76.2% 94 112 -16.5% 118 122 -3.2% 52 41 24.6% 15 22 -31.4% -91 -73 24.5%

Loans impairment (net of recoveries)


7272

Banco Comercial Português, S.A., a public company (sociedade aberta) having its registered office at Praça D. João I, 28, Oporto, registered at theCommercial Registry of Oporto, with the single commercial and tax identification number 501 525 882 and the share capital of EUR 4.694.600.000

Investor Relations Division:Pedro Esperança Martins, Head of Investor RelationsFrancisco Pulido Valente

Tl: +351 21 1131 085Email: [email protected]

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