Consolidated Results 2018 Unaudited financial information Investor Relations 01/02/2019
Agenda 1 Highlights 2 Results 3 Balance Sheet 4 Asset Quality 5 Liquidity 6 Capital 2
Highlights 3
Highlights CGD strengthens profitability and asset quality, earning improvements to its rating (1) Core operating income increases 14.6% over 2017, benefiting from the rise of net interest margin in Portugal, increased commission income and lower operating costs. Core Income (Margin + Commissions) up 7% Consolidated net income reaches 496 M € (52 M € in 2017), resulting in a ROE of 6.6% Phased-in and fully implemented CET 1 ratios reach 14.7%. Fully implemented Tier 1 and Total ratios of 15.7% and 17.0% are evidence of CGD’s robust capital position Continued improvement in asset quality: reduction of NPL ratio to 8.5% and coverage increased to 63,5% 3 notches rating upgrade, to Ba1, by Moody’s (Feb -18 and Oct-18) and 1 notch to BB by Fitch (Dec-18). DBRS affirmed at investment grade level of BBB (low) (1) Core operating income = Interest margin + Net Commissions - Current operating costs. 4
Highlights Strategic Plan – 2018 execution consolidates the track to 2020 Strategic Plan Targets 6.6% > 5% 2018 Management Return on Equity Targets (1) (ROE) > 5% 2018-12 Execution 2018-03 Execution Target 2018 < 58% (2) 2018 Management 52% Recurrent Targets Cost-to-Income < 55% 2018-12 Execution 2018-03 Execution Target 2018 10,0% 8.5% 2018 Management NPL Ratio Targets < 10% 2018-12 Execution 2018-03 Execution Target 2018 14.7% 12.0% 2018 Management CET1 Targets Fully loaded > 13.5% 2018-03 Execution Target 2018 2018-12 Execution (1) Current activity ROE = (net income + non-recurring costs + non-controlling interests) / Shareholders ' equity (average of 13 monthly observations); (2) Domestic activity. 5
Highlights Sale of international subsidiaries Buyers for entirety of CGD’s shareholder position in Mercantile Bank Holdings Limited (South Africa) and Banco Caixa Geral, S.A. (Spain) approved by the Portuguese government. Sales are, at this time, subject to approval by the authorities of each country , which is why they weren’t reflected in the 2018 accounts. In case the sales are concluded before the final approval of the Annual Report, these constitute an adjustable subsequent event. ■ Banco Caixa Geral (Brazil) - Preparatory stage of the sale process initiated in 2017 ■ Banco Comercial do Atlântico (Cape Verde) - Sale process initiated in 2019 6
Highlights Agencies start to review CGD’s rating MOODY’S FITCH DBRS Rating Ba1 BB BBB (low) Changes Feb. – Upgrade to Ba3 Jun. – Rating BBB (low) Dec. – Upgrade to BB affirmed Oct. – Upgrade to Ba1 in 2018: Positive Outlook Positive trend Dec. – Negative Outlook • 3 notches upgrade Impact • 1 notch upgrade • Investment grade rating • Gap to the Sovereign affirmed review: • Gap to the Sovereign reduced by 1 notch • Positive Trend reduced to 1 notch • Negative Outlook is a result of systemic event (full depositor preference over senior unsecured debt) 7
Highlights Main management targets for 2019 and 2020 Strategic Plan Targets Return on Equity 2019 2020 2020 (1) (ROE) > 7% > 9% > 9% 2019 2020 2020 Recurrent (2) < 50% < 43% < 43% Cost-to-Income 2019 2020 2020 NPL Ratio < 7% < 5% < 7% 2019 2020 2020 CET1 > 14% > 14% Fully loaded > 14% (1) Current activity ROE = (net income + non-recurring costs + non-controlling interests) / Shareholders ' equity (average of 13 monthly observations); (2) Domestic activity. 8
Highlights Digital Banking: Building the Future CGD Caixadirecta Logins M Direct 40% App logins Active customers already reach CGD PT CGD Portugal: +128 thousand customers vs. Dec.17 (+8.9%) 60% 2.03 1.99 1.94 1.92 1.86 App 1.84 1.80 1.78 60% 46% (jun18) 0.45 0.44 0.42 0.43 0.41 0.40 0.39 0.39 Market Share Other Leader with more 53% 1.58 1.55 1.52 than twice the 1.49 1.45 1.44 1.41 1.39 number of users of 2 nd placed bank* Portugal CGD 47% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 CGD Portugal Other (CGD Group) Total * According to Basef Internet Banking study (2018 average up to October) by Marktest. 9
Highlights Digital Banking: Offer Handy and practical 2018 Best Homebanking site Immediate use At the distance of a click Groundbreaking and educational Easy and instantaneous 10
Highlights Digital Banking: Building the Future CGD 1.43M 147k Corporates* 1.58M Individuals* +68% (1) +9% (1) Digital Customers number of customers in Portugal number of customers who downloaded Caixa Empresas App with regular use of digital channels 273k ~ 668k 300k remote customer Caixadirecta App users customers management service login to Caixa’s digital channels + 32% (1) on a daily basis +55% (1) in number of customers number of customers (1) Year on Year changes * Number of clients with an active Caixadirecta contract – Dec 2018 11
Highlights Digital Banking: New functionalities and more transactionality NEW IN 2018: Account opening remotely +13% +104% New Caderneta App with transfers and payments Specialized Credit Investment Funds transaction volume 1 New Caixadirecta App transaction volume 1 CORPORATES INDIVIDUALS > 400 thousand customers ~100 M Caixa Easy App > 10 thousand customers in 3 months Monthly +8% +5% Caixadireta for 12-17 year old operations customers Caixa is the 1st Bank in Portugal to offer Savings products Trade Finance this service +24% transaction volume 1 transaction volume 1 Consumer credit in Caixadirecta > 250 operations in first 2 months +56% +14% THE ONLY BANKING SITE in the TOP 30 www.cgd.pt Volume of credit Long Term + de 302m Top 12 limits assigned 1 deposits volume 1 Ranking PT Followers No. of single Visitors 2 1 Changes over the same period, 2018 vs 2017; 2 Netaudience – Dec18 12
Highlights Leadership and Distinctions Leader in main client and product segments Prizes and distinctions CGD Customer deposits 25.7% 1 st in Portugal Caixa BI Individuals deposits 29.1% 45 th in Europe Emigrant deposits 49.3% Best Investment General government deposits 33.3% Bank - PT 154 th Worldwide Loans and advances to customers 19.5% Individuals loans 21.2% Mortgage loans 24.4% Caixagest General government loans 30.4% Best Global and Bond Fund Manager in (1) Unit trust Investment funds 33.4% Portugal Financial insurance 43.0% Retirement savings plans 55.6% (1) Wealth management 38.6% OTRV “July 2025” no. of orders 40.0% Leading position in various customer segments (2) Minimum service accounts 45.7% in particular University Students, with 56% of the (1) Debit cards 26.7% academic population (over 40 thousand new students from 80 universities and institutes in 2018). Market Shares November 2018 (1) December 2018; (2) June 2018 13
Highlights Relevant Events • Individuals and households CGD launches new corporate recognition programme exclusive for SME with several advantages: • 27% increase in new mortgage loans , € 328 million over • More expedient and documentation process; Dec17. 1,558 • Improved pricing; 1.230 27% • Exclusive treasury products; • Trade Finance products and support Coverage: 9,600 corporate customers 2017-12 2018-12 • 1.5 million Contas Caixa accounts, 584 thousand more than in 2018 • New customer segmentation model: Caixa Platinum, Caixa Azul and Placement of new government sponsored credit lines: Mass Market • Caixa Invest Inovação (EIF) • Caixa EIB 2018 Corporate business • Capitalizar Mais – SI Inovação • Launch of Overdraft facility for non-Euro accounts; 1st place in Linhas Capitalizar 2018 e Capitalizar Mais • Forfait extended to Documentary Credits; • Non-recourse factoring (95% coverage by COSEC – credit insurer); • Renting – on-going campaign with new vehicles; In 2018, 13 “Fora da Caixa” conferences were held • Credit insurance lines between COSEC and CGD; involving circa 7,000 CGD customers and 275 thousand streaming views. • New Factoring & Confirming operations up 15%, Equipment and Property Leasing, 27% and 33% respectively, over 2017. 14
Results 15
Results 2018 confirms progress in strengthening CGD’s profitability M € 496 52 6.6% 6.6% -171 -348 -395 -488 -579 -1,860 (1) ROE Current Activity 2011 2012 2013 2014 2015 2016 2017 2018 ROE (2) 2018-12 Consolidated Net Income (1) ROE = (net income + non-controlling interests) / Shareholders ' equity (average of 13 monthly observations). (2) Current activity ROE = (net income + non-recurring costs + non-controlling interests) / Shareholders ' equity (average of 13 monthly observations). 16
Results Quarterly Net Income confirms progress of CGD’s profitability (+27% Y-o-Y)... M € 175 126 126 99 496 68 3 -11 52 -39 2017-12 2018-12 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2017 2018 Quarterly Net Income Net Income 17
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