Page 1

PRESS RELEASE CAIXA GERAL DE DEPÓSITOS CONSOLIDATED RESULTS 1H 2021 5 CGD made a net profit of € 294.2 million in first half 2021 and returned to an investment grade rating from Moody's . Net assets of more than € 100 billion . In a half year characterised by some recovery in economic activity , in a still adverse background for banking activity , Caixa Geral de Depósitos group's consolidated net profit of € 294.2 million was up 18.3 % over the same period 2020 and equivalent to a return on equity ( ROE ) of 7.2 % . This evolution is mainly a result of the good performance of the net trading income , as the level of core income remained with a negative trend , impacted by a € 44 million decrease in net interest income , only partially offset by the increase in commissions . The net income also includes an extraordinary income of € 44.3 million ( after tax ) deriving from a revaluation of liabilities for post - employment benefits and from provisions for the pre - retirement programme . Current net income of € 250 million was therefore up 26.2 % over current income in first half 2020 . Impaired credit at the end of the half year stood at € 90.2 million , as opposed to the € 59.7 million recorded in the previous quarter which , net of recoveries , resulted in a cost of credit risk of 19 bps . Operating costs on a recurring basis were down 1.5 % over the same period 2020 to € 400 million . This translated into a recurring cost - to - income ratio of 45.3 % , as opposed to 49 % in first half 2020 . Customer deposits were up 6.3 % by € 4.5 billion in first half 2021. This essentially derived from resources taken by CGD Portugal , fuelled by higher levels of household savings and customers ' trust in and loyalty to Caixa . Credit to companies in Portugal ( excluding the construction and real estate sectors , in which the reduction of NPLs is concentrated ) was up 5.4 % , reflecting greater support for companies . The amount of new mortgage loans was up 65 % over first half 2020. This resulted in a leading market position with a new sales share of 24.4 % up to May 2021 . Notwithstanding the fact that the increase was influenced by lower sales in second quarter 2020 due to the beginning of the lockdown , CGD continued to trend to higher than sector growth and strengthened its market share in comparison to 2020 . Asset quality continued to improve . The non - performing loans ratio was down to 3.2 % and , together with a preventive increase of impairment , made it possible to achieve an NPL ratio net of impairment of 0 % ( taking all impaired credit into account ) . This has been the case since the first quarter . Considering only specific impairments , CGD's net ratio already compares favorably with the average for European banks . Capital ratios were strengthened and reached 18.9 % for core capital ( CET1 ) and 21.5 % for total capital , even after the payment of the dividend on 2020 profit and comfortably complying with the capital requirements in force for CGD . These capital ratios , higher than the Portuguese and European averages , are indicative of CGD's robust capitalisation . In July 2021 , Moody's Investor Service upgraded its rating on CGD's long term senior debt from Ba1 to Baa3 . This upgrade of CGD's long and short term senior debt marks a return to Moody's investment grade category rating after a period of ten years and is an important milestone in Caixa's evolution and market status . With this change , CGD is now rated at investment grade by two of the main international rating agencies . PRESS RELEASE CAIXA GERAL DE DEPÓSITOS 1 5