Banco BIC Português, S.A. Av. António Augusto de Aguiar, Lisboa, Portugal Tel.:

Transcription

1 2013 Annual Report

2 Banco BIC Português, S.A. Av. António Augusto de Aguiar, Lisboa, Portugal Tel.:

3 2013 ANNUAL REPORT

4 INDEX Main Indicators Chairman s Statement BANCO BIC Governing Bodies Organisational Structure Shareholders Historical Milestones Distribution Channels Banco BIC Brand BIC Universe Human Capital ECONOMIC ENVIRONMENT BUSINESS AREAS Commercial Banking International and Financial Area Capital Markets Private Banking FINANCIAL REVIEW RISK MANAGEMENT PROPOSED APPLICATION OF 2013 RESULTS FINANCIAL STATEMENTS AND NOTES Financial Statements Notes to the Financial Statements Certification of the Accounts Report and Opinion of the Supervisory Board Adoption of the Recommendations of the Financial Stability Forum (FSF) and Committee of European Banking Supervisors (CEBS) regarding Transparency of Information and Valuation of Assets

5 Monastery of Jerónimos, Lisbon, Portugal

6 ANNUAL REPORT BANCO BIC

7 5 MAIN INDICATORS Var. (%) NET TOTAL ASSETS 3,948,710 5,445, % BUSINESS TURNOVER 5,252,874 7,311, % Loans and advances to Customers (gross) 2,517,528 3,174, % Guarantees provided and documentary credit opened 341, , % Customer resources 2,393,707 3,804, % DEPOSITS AND INVESTMENTS IN CREDIT INSTITUTIONS 1,316, , % RESOURCES OF CREDIT INSTITUTIONS AND CENTRAL BANKS 670, , % NET INCOME 357, , % PROFITABILITY Net interest income 56,430 88, % Net operating income 104, , % Net operating income / net assets 2.6% 2.5% -3.9% Net operating income by Employee % Net income for the year (7,959) 2,499 - Comprehensive income for the year 74 6, % EFFICIENCY RATIOS Structural costs / operating income 114.5% 87.1% - Staff costs / operating income 52.2% 48.3% - SHARE CAPITAL Ratio of adequacy of own funds 17.1% 14.0% - Core tier I ratio 11.9% 10.5% - ASSET QUALITY Non-performing loans ratio (1) 3.5% 4.0% - Credit at risk ratio (1) 7.3% 7.2% - Credit at risk ratio, net (1) 1.2% 2.1% - Ratio of coverage of non-performing loans (1) 177.3% 127.4% - Ratio of coverage of loans at risk (1) 84.6% 70.2% - NUMBER OF BRANCHES, CORPORATE CENTRES AND PRIVATE BANKING CENTRES % NUMBER OF EMPLOYEES 1,337 1, % (1) Ratios calculated in accordance with Banco de Portugal Instruction 16/2004.

8 ANNUAL REPORT BANCO BIC CHAIRMAN S STATEMENT We started in 2008 with the business lines of commercial banking, corresponding bank for Angolan banks, and private banking. At the time, retail banking was no more than a complement to these business lines. Together with our twin company, Banco BIC, S.A. (Angola), we immediately achieved a privileged position of support to the different economic agents of the business scene between Portugal and Angola. With the acquisition in 2012 of the former BPN, a retail network operating on a national scale was thus transferred to our Bank, with funding which enabled us to strengthen our focus on the financing of Small and Medium Sized Enterprises (SMEs) and exporting companies with interesting prospects in the quality-risk area. The structure that we inherited from the former BPN presented a loss of close to 13 million euros in 2012 and Banco BIC Português, which we started up in 2008, gained 5 million euros in that same period, hence the legal integration of the banks into the current Banco BIC Português enabled us to arrive at the end of 2012 with negative net income of 8 million euros was a year of recovery, with break-even having been achieved in the month of October and the end of the year having been reached with positive net income of 2.5 million euros. The entire year of 2013 was marked by intense work on recovering the structure of the former BPN and market repositioning. The firmness and strength of our shareholder structure, the quality of our management team and the motivation of our Employees has enabled establishing the credibility of our Bank and boosting relations with our Customers and Depositors. Since our integration of the former BPN in March 2012, turnover has practically doubled. During 2013, turnover increased by approximately 2 thousand million euros (close to 38.9%), with Customer deposits having grown by 1.4 thousand million euros (59%) to stand at 3.8 thousand million euros at the end of the year. During this same year, loans have increased by 657 million euros (26.1%), to reach 3.2 thousand million euros at the end of the year. Net assets amounted to 5.4 thousand million euros, reflecting a significant growth of the balance sheet of 1.5 thousand million euros (37.8%) in 2013.

9 7 We shall naturally continue to support our companies with a good risk profile, namely SMEs and the important economic groups in the Portuguese economy. Through our collaboration with Banco BIC Angola, we shall also continue to support the transactions that are made between Portugal and Angola and assist Angolan entrepreneurs who invest in Portugal and Portuguese entrepreneurs who invest in Angola. Likewise in loans to individuals and specialised credit, we shall continue to finance Portuguese families and companies. Through the Capital Markets Office and Private Banking Division we have significantly expanded the attraction of off-balance sheet resources, via our investment funds, and the number of Customers in our Private Banking. In this context, special note should be made of our Banco BIC Tesouraria Fund which has reached a 3 years annualised return of 5.31% and has been distinguished with the Morningstar 5-star rating award at 3 years, in the category Euro Ultra Short Term Bonds. Our Banco BIC Investimento, Banco BIC Brasil and Nevafunds Global Fixed Income Funds have shown notable performances in comparison with the similar competitors. We were the first commercial bank to conduct Kwanza transactions outside Angola. We started at our Branch of Rua Mouzinho da Silveira, in Lisbon, and currently, our service is already provided by 15 Branches. Hence, in Portugal we are thus offering yet another service to the Angolan community in our country and to Portuguese with connections to Angola. At this moment in time, we have a network with over 200 Branches, covering Mainland Portugal, Madeira and the Azores, aimed at supporting individuals and small business, 15 Corporate Centres (includes 3 cores) offering financing and advisory services to our companies, two Private Banking Centres, one in Lisbon and another in Oporto, and a Network of External Promoters. In order to increase the Bank s proximity with its Customers, we shall continue to open Branches all over the country, including in Lisbon and Oporto, where we feel the need for further coverage, and shall continue to relocate Branches to places with greater visibility. We support the most popular sports such as cycling, through sponsorship of the Round Portugal Tour and the BIC Carmim Team where we have included two Angolan cyclists for the Round Portugal Tour, in football, where we offer support through our sponsorship of Estoril, Sporting de Braga, Arouca and Paços de Ferreira, in futsal (indoor football) through our agreement with the Portuguese Football Federation and in motorcycling. In sports more linked to corporate banking, we continue with our connection to golf, tennis and padel. Our shareholders bought BPN Cabo Verde IFI from the State and transformed it into Banco BIC Cabo Verde IFI, and BPN Brazil, where we have started a banking operation to strengthen the golden triangle of Brazil-Angola-Portugal. We have opened a representation office in Johannesburg to support the significant Portuguese and Angolan communities resident in South Africa. We are waiting for authorisation to open a commercial bank in Namibia, we are planning to open a representation office in China and begin banking operations also in Zimbabwe, Zambia and the two Congos. Our Customers have begun to recognise Banco BIC Português not only as a financial partner in Portugal, but also as an international platform for business in the Portuguese-speaking world and in the neighbouring countries of Angola and those with links to Angola. We shall continue to count on a solid shareholder structure, on a professional management team which has shown excellent performance since our start-up in 2008, on a staff of highly qualified, experienced and motivated Employees and now, on an international platform competent in trade finance. Thus we expect to continue to deserve and reinforce the confidence of our Customers in Chairman of the Board of Directors Fernando Mendes Teles

10 BANCO BIC A Bank that is more complete, more structured, more dedicated and better equipped to boost commercial relations between Portugal and Angola.

11 Lagoon of Sete Cidades, Azores, Portugal

12 ANNUAL REPORT BANCO BIC GOVERNING BODIES General Meeting Executive Committee Pedro Canastra de Azevedo Maia (Chairman) Alberto Mendes Teles (Deputy Chairman) Jorge Manuel de Brito Pereira (Secretary) Board of Directors Fernando Teles (Chairman) Isabel dos Santos Américo Amorim Luís Alves Monteiro Francisco Constantino Pinto Luís Mira Amaral Jaime Pereira Carlos Traguelho Diogo Barrote Artur Marques Rui Pedras Luís Mira Amaral (CEO) Jaime Pereira (Deputy CEO) Carlos Traguelho Diogo Barrote Artur Marques Rui Pedras Supervisory Board Henrique Camões Serra (Chairman) Abílio Morgado (Permanent Member) Maria Ivone Santos (Permanent Member) Célia Custódia (Alternate Member) Statutory Auditor (four-year period 2012/2015) Deloitte e Associados, SROC, S.A., represented by: José António Barata, ROC number 1210 Carlos Loureiro, ROC number 572 (Alternate)

13 BANCO BIC 11 DISCLOSURE OF QUANTITATIVE INFORMATION In compliance with the provisions in article 3 of Law 28/2009, of 19 June and n.º 2 of article 17 of Banco de Portugal Notice 10/2011, published on 9 January 2012, we disclose, in an aggregate and individual form, the composition and the remunerations earned during 2013 by the Board of Directors, Supervisory Board and Board of the General Meeting, which correspond only to the payment of fixed remunerations. Body Number of members Amount of remunerations (euros) Board of Directors 11 1,312,582 Supervisory Board 3 70,500 Board of the General Meeting 4 16,375 TOTAL 18 (a) 1,399,457 (a) Includes all members of the Board of Directors and Board of the General Meeting who held office throughout the entire year of 2013 in Banco BIC Português, S.A.. Body Name Position Amount of remunerations (euros) BOARD OF DIRECTORS Fernando Leonídio Mendes Teles Chairman Board of Directors 52,550 Américo Ferreira Amorim Non-executive Director 52,550 Isabel José dos Santos Non-executive Director 52,550 Luís Filipe Alves Monteiro (1) (3) Non-executive Director 14,716 Francisco Manuel Constantino Pinto (2) (3) Non-executive Director 14,716 * Luís Fernando de Mira Amaral CEO of the Executive Committee 202,500 Jaime Pedro Galhoz Pereira Deputy CEO of the Executive Committee 184,000 Carlos Prieto Traguelho Executive Director 187,000 Diogo Vasco Ramos Barrote Executive Director 184,000 Artur de Jesus Marques Executive Director 184,000 Rui Manuel Correia Pedras Executive Director 184,000 SUB-TOTAL 1,312,582 SUPERVISORY BOARD Henrique Manuel Camões Serra Chairman of the Supervisory Board 28,500 Maria Ivone de Freitas Pereira dos Santos Member 21,000 Abílio Manuel P. R. de Almeida Morgado Member 21,000 SUB-TOTAL 70,500 BOARD OF THE GENERAL MEETING Pedro Canastra de Azevedo Maia Chairman of the Board 7,500 Francisco Manuel Constantino Pinto (2) Deputy Chairman of the Board 5,000 Jorge Manuel de Brito Pereira Secretary 3,875 Alberto Mendes Teles (4) Deputy Chairman of the Board - SUB-TOTAL 16,375 TOTAL 1,399,457 (1) Election on 15/10/2013. (2) The position of member of the Board of the General Meeting was held until 14/10/2013, after which date he was elected to hold office as a Non-executive Director. (3) Member of the Remuneration Committee. (4) Election on 15/10/2013. * Payment processed in 2014 but relative to 2013.

14 ANNUAL REPORT BANCO BIC Also in compliance with the provisions in n. os 2 and 3 of article 17 of Banco de Portugal Notice 10/2011, published on 9 January 2012, we disclose, in an aggregate form and detailed by area of activity, the remunerations of the Employees who comply with some of the criteria established in n.º 2 of article 1 of the same Notice. In order to delineate the Employees to whom this information refers, it was considered that the total number of relevant Employees corresponds to the senior Directors who performed control duties during 2013, i.e. in the Internal Audit Division, the Credit Risk Analysis Division, the Risk Office and the Compliance Office, as well as the senior Directors of the Divisions and Offices which report directly to the Committee. Hence, in 2013, the total group defined above was composed of 24 Employees. Two new non-executive directors were elected on 15 October 2013, appointed as members of the Remuneration Committee, whose term of office ends in Remuneration Policy on Governing Bodies 1.1. No external consultants participated in the definition of the Remuneration Policy The Remuneration Policy is reflected in the payment of a fixed remuneration to the executive directors, defined by the General Meeting, paid 14 times per year, with no variable component payable In this way, the Remuneration Policy for 2013 was compatible with the long term interests of the Bank and did not encourage excessive risk-taking. The remuneration of the aforesaid group, indicated in the table below, only refers to fixed remunerations, where this amount includes 16,483 euros of seniority payments and 21,759 euros of long service bonuses. Annual remuneration Body Number of Employees Amount (euros) Control duties 4 285,963 Other duties 20 1,582,056 TOTAL 24 1,868,019 No new Employees were recruited who would be part of this senior group during 2013, although 4 Employees who already belonged to the Bank s staff were appointed to these positions. There was no payment for the early termination of employment contracts during As of April 2013, the non-executive directors henceforth received a fixed remuneration approved by the General Meeting, paid 14 times per year The members of the Supervisory Board only receive a fixed remuneration approved by the General Meeting, paid 12 times per year In the case of dismissal of a Director, without fair cause, the indemnity payable is ruled by the provisions in article 403 of the Companies Code, i.e. it shall not exceed the amount of the remunerations that the dismissed director would presumably have received up to the end of his tenure. In the case of dismissal for inadequate performance, no compensation or indemnification shall be paid, nor are any payments provided for in case of termination by agreement. ANNUAL DISCLOSURE ON REMUNERATION POLICY The Remuneration Policy of Banco BIC Português, which shall be referred to below, was reviewed and approved by the General Meeting, held on 23 March 2013, under proposal of the Board of Directors Remuneration of the members of the Executive Committee a) All the members of the Executive Committee receive a fixed remuneration, paid 14 times per year; b) In 2013 no variable remuneration, bonus system or other non pecuniary benefit was attributed to these members;

15 BANCO BIC 13 c) The Management is assessed annually by the General Meeting, considering the accomplishment of objectives, the quantitative and qualitative results achieved as well as their source and nature, their sustainability or temporary character, the risk associated to their achievement, compliance with the rules, value added for shareholders and the institution s relations with other stakeholders; 2.3. Employees only receive a fixed remuneration as defined in their employment or service contracts Employees are assessed annually by their respective senior staff whose results do not influence the attribution of any variable component of their remuneration. d) The members of the Executive Committee do not benefit from supplementary pension or early retirement schemes Remuneration of the members of the Supervisory Board The members of the Supervisory Board receive a fixed remuneration, paid 12 times per year Remuneration of the non-executive members of the Board of Directors The non-executive members of the Board of Directors only receive a fixed remuneration, paid 14 times per year Remuneration of the Board members the General Meeting The Board members of the General Meeting receive a fixed attendance fee for each General Meeting attended which is defined and approved by this General Meeting. 2. Remuneration Policy on Employees (as defined in n.º 2 of article 1 of Banco de Portugal Notice 10/2011, published on 9 January 2012) 2.1. Employees who are legally bound to the Bank through an employment contract receive no form of remuneration other than those due to them from the normal application of the Company Agreement or labour legislation, and are not entitled to any system of annual bonuses or any other non pecuniary benefits; nevertheless they may receive a share of profits as provided for in the Company Agreement Employees covered by the Company Agreement benefit from a supplementary pension plan, with a defined contribution paid in equal percentages of the respective remuneration by the Employees and Bank.

16 ANNUAL REPORT BANCO BIC ORGANISATIONAL STRUCTURE EXECUTIVE COMMITEE LUÍS MIRA AMARAL (CEO) JAIME PEREIRA (DEPUTY CEO) CARLOS TRAGUELHO (DIRECTOR) DIOGO BARROTE (DIRECTOR) ARTUR MARQUES (DIRECTOR) RUI PEDRAS (DIRECTOR) Information Technology Systems Division Southern Companies Banking Division Internal Audit Division Operating Support Division Northern Companies Banking Division Southern Branch Coordinating Division (2) Marketing and Communication Division Southern Branch Coordinating Division (1) Credit Risk Analysis Division Material Resources Division Northern Branch Coordinating Division Organization Office Alternative Channels and Means of Payment Division Planning, Accountancy and Management Division Risk Office Angola Portugal Office Commercial Stimulation Office Legal and Credit Recovery Division Private Banking Division International and Financial Division Compliance Office Human Resources Division Capital Markets Office Overall Control Office Framework Agreement with the State: Litigation Guarantees & Payments Specialised Credit Office (1) Regional Divisions: Cascais/Sintra, Lisbon, Margem Sul/Alentejo/Islands, Algarve and Azores. (2) Regional Divisions: Leiria, Ourém, Oeste and Almeirim.

17 BANCO BIC 15 Board of Directors Fernando Teles (Chairman) Isabel dos Santos Américo Amorim Luís Alves Monteiro Francisco Constantino Pinto Luís Mira Amaral Jaime Pereira Carlos Traguelho Diogo Barrote Artur Marques Rui Pedras Executive Commitee (from left to right): Diogo Barrote, Jaime Pereira, Luís Mira Amaral, Carlos Traguelho, Artur Marques and Rui Pedras

18 ANNUAL REPORT BANCO BIC SHAREHOLDERS At 31 December 2013, the Bank s share capital is held by the following shareholders: Shareholder structure % Share capital Number of shares Amounts in euros Amorim Projectos, SGPS, S.A. 25% 19,050,000 75,057,000 Santoro Financial Holding, SGPS, S.A. 25% 19,050,000 75,057,000 Fernando Leonídio Mendes Teles 20% 15,240,000 60,045,600 Ruasgest, SGPS, S.A. 10% 7,620,000 30,022,800 Luís Manuel Cortez dos Santos 5% 3,810,000 15,011,400 Manuel Pinheiro Fernandes 5% 3,810,000 15,011,400 Sebastião Bastos Lavrador 5% 3,810,000 15,011,400 Other shareholders 5% 3,810,000 15,011, % 76,200, ,228,000 At 31 December 2013, Banco BIC had approved a total ceiling for loans of the value of 10,000 thousand euros for the shareholder Ruasgest, SGPS, S.A., which on that date was being used to the value of 9,014 thousand euros. On 31 December 2012, Banco BIC had not granted credit to any member of the governing bodies. At 31 December 2013 and 2012, the members of the governing bodies listed below held the following number of shares of Banco BIC: Board of Directors Number of shares Fernando Leonídio Mendes Teles 15,240,000 Diogo Vasco Ramos Barrote 762,000

19 BANCO BIC 17 HISTORICAL MILESTONES EVOLUTION Banco BIC Português S.A. was incorporated in January 2008, and started its banking activity on 26 May of the same year. The head office of Banco BIC was initially located in the building where its first Corporate Centre/Branch was also established in Lisbon, with a Corporate Centre/Branch having been opened in Oporto at the end of this same year. During the following years, Banco BIC began to mark its presence in Viseu, Aveiro, Leiria and Braga, having opened the Alvarenga Branch in 2012, especially directed for fundraising. Since its creation, Banco BIC has upheld its position as a company bank, particularly well endowed to support SMEs in Portugal and their export activity, with a strong role as a corresponding bank of Angolan banks, namely Banco BIC S.A. (Angola). In 2012, the acquisition of Banco Português de Negócios (BNP) by Banco BIC shareholders and consequent merger of the two entities enabled Banco BIC to add the dimension of retail banking to its already recognised areas. This represented a significant increase in its commercial network, which was increased by over two hundred new branches. This acquisition was reflected in the relaunch of a Bank that is more complete, more structured, more dedicated and better equipped to boost commercial relations between Portugal and Angola. With a shareholder structure identical to that of Banco BIC S.A. (Angola), Banco BIC Português incorporates reference shareholders in the Portuguese business market, namely in the banking sector, as well as in Angolan economic and financial life. The team is composed of a group of professionals with long-standing experience in the financial system, not only in Portugal but also in other African countries, Brazil and Spain.

20 ANNUAL REPORT BANCO BIC MAIN EVENTS OF 2013 JANUARY Launch of the Banco BIC Investimento Fund, an open mixed bond investment fund indicated for investments of a medium/long term perspective, offering its participants access to a diversified portfolio of assets with different risk levels. Sponsorship of the Cup of Portugal, in football, one of the most important national sports events. Start-up of the campaign Closer to You, Banco BIC s first multi-channel campaign, which was shown on the television, radio, digital platforms and in the press. Launch of the Extra Deposit, an exclusive term deposit for new funds aimed at savers Customers with saving capacity and who value security and heritage stability. JUNE Holding of the first Banco BIC Golf Tournament at Campo Montebelo, situated 15 minutes from Viseu, where, during two days, Banco BIC guests enjoyed the practice of this sport which is attracting an increasing number of players. A golf clinic was also held for those who wished to have a first contact with this sport or perfect their technique.

21 BANCO BIC 19 JULY Completion of the process of application migration and operational merger, thus concluding the integration of the IT systems of the two institutions (Banco BIC and BPN). Renovation of the netbanking service with the provision of new functionalities and renaming to BancoBIC Net. Sponsorship of 4 First Division football clubs. Sporting Clube de Braga, Grupo Desportivo Estoril Praia, Futebol Clube de Paços de Ferreira and Futebol Clube de Arouca, equipped with the status of challengers which fully represents the spirit of the brand. Opening of a Branch, Corporate Centre and Regional Division in the Azores, in Ponta Delgada, an important milestone which represented the expansion of Banco BIC to the entire Portuguese territory. Attendance of the 30th edition of Luanda International Fair (FILDA), a multi-sector exhibition and business event which, every year, attracts national entrepreneurs and businesspeople from African, American, European and Asian countries. Launch of the Round Portugal Tour Deposit campaign, anticipating Banco BIC s sponsorship of the 75th Round Portugal Tour. In this action, Banco BIC s Official Shirts were attributed upon constitution of the deposit. AUGUST Sponsorship, for the second consecutive year, of the Round Portugal Tour by Bicycle. Banco BIC sponsored the Red Shirt of the Points and arrival towers. Campaign to attract new Customers in Partnership with ZON Lusomundo. Upon the account opening, 2 vouchers were offered to watch A Gaiola Dourada (The Golden Cage) a French-Portuguese comedy which was the most viewed film of the year in Portugal.

22 ANNUAL REPORT BANCO BIC SEPTEMBER Sponsorship of the Under-16 International Tennis Tournament Banco BIC Beloura Open. This competition was held at Beloura Tennis Academy, in Quinta da Beloura in Sintra. Sponsorship of the Tennis & Padel Week, held at Estoril Tennis Club. Support was offered to the Banco BIC/National Padel Championship, which was held for the first time under the wings of the Portuguese Tennis Federation. The best Portuguese doubles, present at the World Championship in Moscow, and in Europe, in Great Britain, contested the national titles for male pairs, female pairs and mixed pairs. Beginning of the marketing in Portugal of NevaFunds Global Fixed Income, an overall bond sub-fund whose objective is the maximisation of return through investment in fixed yield securities, issued by governments, companies (investment grade and non-investment grade) and supranational entities. OCTOBER Sponsorship of the World Padel Tour in the capacity of Official Bank. This event, held in the context of Lisbon International Open 2013, brought the 32 best pairs of the world in this sport to Portugal for the first time. Celebration of the agreement with the Portuguese Football Federation which confers Banco BIC with the status of Official Sponsor of the League, Cup of Portugal and Super Cup of Futsal as well as the Futsal Portuguese National Team. The duration of the agreement shall be at least two seasons, and will enable Banco BIC s association of its business and promotion activities with a sport that is undergoing strong growth. NOVEMBER Launch of the Kwanza purchase and sale service (notes issued from October 2012), where Banco BIC is the first private commercial bank to trade Kwanza notes in Portugal. Inaugurated at the Rua Mouzinho da Silveira Branch, in Lisbon, the service has been extended to a further 14 Branches, thus assuring adequate geographic coverage in Portugal. The launch of this service was accompanied by an advertising campaign with a television spot filmed at the Rua Mouzinho da Silveira Branch, which was shown in Portugal and Angola. Opening of the Sines Branch under the strategy of proximity and interest in regional development. Launch of the MB Spot functionality at POS Netpay point-of-sale automatic payment terminals, enabling the provision of new transactions, namely payment of services and shopping, and mobile telephone recharging through POS Netpay.

23 BANCO BIC 21 DECEMBER Launch of the ANPME card (Individual and Company versions), aimed at association members, following the partnership between Banco BIC and the National Association of Small and Medium Sized Enterprises. Opening of the Algés and Mirandela Branches and change of premises of two Branches in Oporto (Capitólio and Amarante), thus following the strategy of modernisation of the Commercial Network. The Customers of these Branches are now offered more modern and more welcoming spaces, with a more accessible location.

24 ANNUAL REPORT BANCO BIC DISTRIBUTION CHANNELS COMMERCIAL NETWORK BPN s acquisition in 2012, by the shareholders of Banco BIC and consequent merger of the two entities, enabled Banco BIC to expand its presence, also taking on the retail banking dimension. The Commercial Network was subject to thorough analysis, with a network restructuring and optimisation process having been implemented. With the stabilisation of the Commercial Network, Banco BIC now has a network at a national scale. The Commercial Network is composed of two areas, the Branch Network, directed at individual affairs and small business, and the Corporate Network, designed for SMEs and large companies. Açores 1 Branch 1 Corporate Centre Viana do Castelo 5 Branches Braga 13 Branches 1 Corporate Centre Porto 37 Branches 2 Corporate Centres Aveiro 18 Branches 1 Corporate Centre Coimbra 7 Branches 1 Corporate Centre Leiria 25 Branches 1 Corporate Centre Santarém 10 Branches 1 Corporate Centre Lisboa 38 Branches 4 Corporate Centres Setúbal 7 Branches 1 Corporate Centre Bragança 5 Branches Vila Real 5 Branches Viseu 7 Branches 2 Corporate Centres Guarda 4 Branches Castelo Branco 5 Branches Portalegre 1 Branch Évora 2 Branches Madeira 2 Branches Faro 9 Branches

25 BANCO BIC 23 PRIVATE BANKING ALTERNATIVE CHANNELS This business area develops its activity with high income Customers. With two Centres, one in Lisbon and another in Oporto, Banco BIC s Private Banking is an autonomous vehicle of distribution of investment solutions directed at this segment. PROMOTERS NETWORK The set of alternative channels, composed of BancoBIC Net Individuals, BancoBIC Net Business and BancoBIC Phone (exclusive for Individual Customers), is strategic for the Bank and represents an ongoing area of special focus. The development of new channels in order to reduce operating costs and accompany the market trend will be determinant in view of two fundamental concepts for our Customers: Time and Proximity. The External Promoters Network has enabled expanding Banco BIC s area of influence. At the end of 2013, the Promoters Network had 620 promoters, corresponding to growth of 41.9% in relation to NETPAY NETWORK Along with the maintenance of the Quality Seal - ISO 9001:2008 Management and Design of Alternative Channels and Means of Payment (Netpay network, ATM, Cards and Alternative Channels) and the APCC Quality Seal, Standard I5838: 2009 Customer Contact Centres - Requirements for Service Provision has been renewed, thus assuring the Banco BIC s primacy of this certification. The Netpay network continues to play an important role in the attraction and retention of Customer loyalty. In line with the strategy outlined by Banco BIC, the key segment of the Netpay network is composed of small and medium-sized companies, with a market share of 7.2% in retail trade and restaurants. Responding to the needs experienced by our Customers, namely the growing search for integrated solutions, the Netpay network has adjusted its terminals, providing equipment compatible with different management software. At the same time, the Netpay network has developed specific solutions for market niches, creating customised packages for certain business needs. At the end of 2013, Banco BIC had over 11 thousand members of its Netpay network and close to 15.5 thousand active POS terminals. In terms of traffic, during 2013 there was an exponential increase in the number of users. This increase stood at 144% relative to 2012, with the number of Internet users having reached 186 thousand users at the end of The service accomplished over 112 thousand participation contracts, with a performance of close to 1.3 thousand new members per month, reflecting a penetration rate of 22%. Key indicators of the distribution network 2013 Branches 201 Corporate Centres (1) 15 Private Banking Centres 2 External Promoters 620 Automatic bank (ATM) 273 Active points of sale (POS) 15,518 Internet banking (active users) 186,000 (1) Includes 3 Cores. ATM NETWORK The total amount of ATM equipment of Banco BIC increased by 3% in terms of installed machines in relation to the previous year, with its market share standing at 2.1%. At the end of 2013, Banco BIC had a total of 273 machines, of which 196 were installed at Branches and 77 in Customers.