BANCO BPI : Banco BPI, SA informs about the results of the On-Site Inspections Program regarding the BPI Group exposure to the construction and real estate sectors

BANCO BPI, S.A.

Public Company

Registered Office: Rua Tenente Valadim, 284, Porto

Fully paid-up and subscribed share capital: € 1 190 000 000

Registered at the Commercial Registry Office of Porto under unique taxpayer reference number 501 214 534

RESULTS OF THE ON-SITE INSPECTIONS PROGRAM REGARDING THE EXPOSURE TO THE CONSTRUCTION AND REAL ESTATE SECTORS

BPI GROUP

On the 29th of November 2012 the On-Site Inspections Program (OIP), regarding the exposure to the construction and real estate sectors in Portugal and Spain, as of 30th of June 2012 was concluded.
The OIP involved the eight largest national banking groups, including BPI Group, and aimed at evaluating the adequacy of the levels of impairments recorded on the exposure to the mentioned sectors, as of 30th of June
2012, under conservative criteria of evaluation.
Regarding the BPI Group, the assessment concluded that there was a need to reinforce the impairments by 7.1 million euros, corresponding to around 0.3% of the exposure assessed.
Of the 7.1 million euros, 4.0 million euros resulted from the analysis of the information and events subsequent to the reference date, as new insolvency / bankruptcy and revaluations of collateral, as illustrated on the left side of the chart below.

The reinforcement of impairments that Group BPI recorded thereafter, as of 30th September 2012, had already covered the majority of the needs identified, reducing the amount from 7.1 million euros to 0.4 million euros, an amount that should be registered until 31st December 2012, as illustrated on the right side of the chart below.

Additional impairment charges: needs identified in the OIP and reinforcement of BPI Group

Additional impairment charges (M.€)

10 Needs identified in the OIP Reinforcement of the institutions

8

6

4

2

0

Impairments / Exposure assessed

Considering the amounts of additional impairments forecasted by Group BPI for the fourth quarter of 2012, the impact of OIP results in the Core Tier 1 expected for 31st of December 2012 should be immaterial, not compromising the fulfilment of the minimum 10% required ratio.
Porto, 3 December 2012
Banco BPI, S.A.

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