PROFILE OF THE CRÉDITO AGRÍCOLA GROUP

PROFILE OF THE CRÉDITO AGRÍCOLA GROUP 08

. Caixa Central Governing Bodies BOARD OF THE ANNUAL GENERAL MEETING Caixa de Crédito Agrícola Mútuo de Amares Chairman Paulo Rebelo Barbosa de Macedo Caixa de Crédito Agrícola Mútuo de Cantanhede e Mira Company Secretary Carlos Alberto Pereira Martins SENIOR BOARD Caixa de Crédito Agrícola Mútuo de Pombal Chairman Carlos Alberto Courelas Caixa de Crédito Agrícola Mútuo dos Açores Francisco Amâncio Oliveira Macedo Caixa de Crédito Agrícola Mútuo de Baixo Mondego António João Mota Cachulo da Trindade Caixa de Crédito Agrícola Mútuo de Guadiana Interior José Artur Palma Estrela 09 Caixa de Crédito Agrícola Mútuo de Porto de Mós Jorge Manuel da Piedade Volante Caixa de Crédito Agrícola Mútuo de Póvoa de Varzim, Vila do Conde e Esposende Alberto Gonçalo Resende Moreira Festa Caixa de Crédito Agrícola Mútuo de S. Teotónio António Manuel Nobre Louçã Caixa de Crédito Agrícola Mútuo de Terras do Sousa, Ave, Basto e Tâmega Artur Teixeira de Faria Caixa de Crédito Agrícola Mútuo de Viseu-Tondela Américo Afonso Cardoso Loureiro

EXECUTIVE BOARD Chairman João António Morais da Costa Pinto Member Licínio Manuel Prata Pina Member Renato Manuel Ferreira Feitor Member Mário Dúlio de Oliveira Negrão Member José Fernando Maia Alexandre AUDITORS Deloitte e Associados, S.R.O.C., S.A. Represented by Luís Augusto Gonçalves Magalhães EXECUTIVE BOARD From left to right: Mário Negrão, Licínio Pina, João Costa Pinto (Chairman), Renato Feitor and José Maia Alexandre ADVISORY BOARD Caixa de Crédito Agrícola Mútuo de Sotavento Algarvio Chairman João Lázaro da Cruz Barrote Caixa de Crédito Agrícola Mútuo de Águeda José Luís Sereno Gomes Quaresma Caixa de Crédito Agrícola Mútuo de Alto Corgo e Tâmega Alcino Pinto dos Santos Sanfins Caixa de Crédito Agrícola Mútuo de Alto Douro Paulo Alexandre Varela Martins Caixa de Crédito Agrícola Mútuo de Beja e Mértola Francisco José Salgueiro Correia Caixa de Crédito Agrícola Mútuo de Lourinhã António Augusto Nascimento Mateus Caixa de Crédito Agrícola Mútuo de S. Bartolomeu de Messines e S. Marcos da Serra José Paulo Barbosa Moreira de Sousa Caixa de Crédito Agrícola Mútuo de Vale do Sousa e Baixo Tâmega Henrique Vasconcelos Teixeira Caixa de Crédito Agrícola Mútuo de Zona do Pinhal Ângelo de Jesus Antunes 0

2. Organigram of the Group SICAM CAIXAS ASSOCIADAS 00% CAIXA CENTRAL 20.25% RURAL INFORMÁTICA 79.20% 32.07% CA VIDA 57.87% 0.00% 0.68% CA SEGUROS 96.72% RURABELA 20.00% RURAL RENT 00.00% 7.62% () FENACAM 0.09% CCCAM SGPS Unipessoal Lda. 00.00% CRÉDITO AGRÍCOLA SGPS 00.00% CA CONSULT AGROCAPITAL SCR 66.67% CA DEALER 00.00% 3.33% FIQ CENTRALFRIE 30.00% CA GEST FIQ PME Investimento Global 26.05% FIQ AGROCAPITAL 27.78% FII CA PATRIMÓNIO CRESCENTE 56.79% FII CA IMOBILIÁRIO 00.00% 0.5% 2.66% 86.33% SICAMSERV 0.48% FULL CONSOLIDATION CONSOLIDATION BY ASSET EQUIVALENCE () Fenacam holds 92.26% of its own capital» total GFCAM = 99.97%

3. Group Operations 2006: Main Features During the year the financial consolidation of the Caixa Central continued. This was the fourth consecutive year with ever higher positive results. At the same time, as a specific management decision, more provisions were set aside for risk cover. CA Vida grew substantially, and was considered the best life insurance company by the magazine Exame. CA Seguros also came in clearly on the upside, continuing the sustained growth of recent years. In investment banking, CA Gest posted its best ever net figures, on the back of a new approach to the market, mainly through its focus on the top segment. CA Dealer also posted with positive net results, deriving from three factors: the growth of net commissions from brokerage and derivative trading, a considerable cut in structural costs, and good extraordinary results. The Group s brokerage business is being overhauled and this involved negotiations on a partnership with a specialist foreign institution. In tandem, customer security accounts were transferred from CA Dealer to Caixa Central to ensure that relations with the Group s retail clients were maintained. On the business side, CA Consult operations reached an even keel. The business model moved on to a new phase during the year, focusing more specifically on agribusiness. By this is understood the whole value chain that takes in the agro-foodstuff, forestry and renewable energy sectors. A salient point in the overall improvement in Group results was the performance of most of the Caixas, with 3 posting profits of over million euros and of these recording over 2 million. There was continuing consolidation of SICAM, with 6 mergers during the year, bringing the total number of Associated Caixas down from to 05. 2 In terms of these mergers, the strategic approach was new: where earlier operations had been geared to turning round insolvent operations, now they were a means of economic and financial consolidation, bringing the structural reorganisation of SICAM a step nearer. The Group s modernisation programme started three years ago, and gained momentum during 2006. There are two distinct but complementary programmes: one, specific to the Caixa Central, is organizational, and includes the Programa de Desenvolvimento Organizacional e Qualidade (PDQD) (Organisational and Quality Development Programme) and the other centres on technology, under the Ruris+ umbrella. The year was also marked by progress on activities closely linked to regulation, supervision and control. The programme, known as Programa de Transformação da Função de Risco (Risk Function Transformation) aims to prepare SICAM for adaptation to the new International Accounting Standards (IAS) and to modify its structure in the light of the Basel II accord.

The Organisational and Quality Development Programme involved reorganisation of the Caixa Central. The aim is to improve customer services and boost the quality and effectiveness of support for associated Caixas. The following initiatives warrant a mention: In the marketing department, a strategic and operational plan was drawn up to serve as a framework to encompass all commercial activities across the Group in 2006; In the commercial department, a project was set under way, one which is of crucial importance in the preparation for expansion of the Crédito Agrícola through the Caixa Central in Lisbon and Oporto, with the creation of the human and functional resources to take up the challenge. In tandem, the operating conditions of existing branches are the focus of ongoing improvement; In the electronic means of payment department, the focus was on internal organisation, with emphasis on business management, freeing it from operations control and creating mechanisms for management of its own products and services; In the office for complementary distribution channels, the focus was fundamentally on strategic development, the aim being to provide the Group with a multi-channel distribution model. This would be innovative and competitive, simplifying and enhancing customer relations across the Group. In information systems, the following projects stand out: preparation for Basel II; preparation for the new International Accounting Standards (IAS); implementation of an alternative data centre, which is part of the business continuity plan and provides a high level of security for the Group s systems and business data; 3 the complementary margin project; projects in the marketing field; the Group customer project (ELO); the new branch solution a project that will bring together all the work on systems integration and will give Caixas working conditions on a par with market competition in terms of quality, efficiency, productivity, after-sales service and minimization of operational risk. A Caixa support and monitoring office was set up to improve communications and to dovetail information systems with business needs. The aim is to create a close relationship between RI/SICAMSERV and associated Caixas, leading to increased efficiency and effectiveness in the use of Group information systems. The activities of RI and of SICAMSERV were also redefined in terms of the mission and the objectives of the two structures. Staff were reassigned in the process.

The new information systems for CA Vida and CA Gest also came on stream; and there was investment in CA Seguros geared to up-dating I.T. equipment and to the creation and in-house management of their website. CA Seguros strated on a project in collaboration with Ernst & Young, part of its Solvência II programme. The aim is to set up an integrated risk management system to develop in-house models to measure and assess specific insurance risk, market and credit risk and economic capital models. In the debit and credit card fields, many customers took up the Soft option (payment by instalments) and many young Crédito Agrícola customers took out the Befree and Superjovem cards. CA Saúde, a health plan, was launched by CA Seguros, adding to the range available for individuals and companies. CA Vida began a pension fund management operation, providing the Group with another form of savings for customers and associates. CA Gest developed a new value added service for top of the range portfolio management, with the launch of its dynamic investment advice, modelled on one of three customer investment profiles. Asset management is also available through Valorização +, which aims to combine a strategy of guaranteed capital return with participation in any rise in stock market values. The launch of the new Crédito Agrícola image was a special moment during the year. The new logo stems from the need to highlight the changes in the Group, covering technology, structure and business, all part of the modernisation of the Crédito Agrícola. The logo, however, keeps faith with the traditional matrix of sysmbols, as do the new logos of the Group companies, which blend in with the features on the main logo. Among the marketing campaigns, the most important was the Campanha Institucional (Institutional Campaign). The focus was the new Group image and its new positioning that of a modern, nationwide institution with a variety of products and services capable of meeting the demands of a wide range of its customers. 4 The first phase of the Integrated Statement scheme reached a conclusion in the second half of the year. This means that customers now receive aggregate information on their financial assets. The Azores branch in the Santa Maria free zone was closed at year-end as part of the reorganisation of the Caixa Agrícola structure outside mainland Portugal. Its operations were transferred to the branches in Madeira and Cape Verde. Authorisation was granted for setting up an international financial institution (as a subordinate company) to run an asset management operation in Cape Verde. On the financial side, specialist softward was brought in for the management of liquidity and interest rate risks, which will back up the developing work of the Comité de Gestão de Activos e Passivos (ALM committee). With this new technical solution coming on stream, there will be a more solid base for managing the balance-sheet risks of each operation within SICAM and the Crédito Agrícola as a whole. The new central archive set-up meant that documentation could be housed in one centre on the outskirts of Lisbon. This freed up space in the Rua Castilho building, and resulted in a streamlining of responses to doumentation requests through a digitalisation procedure. A pilot scheme was started at one Caixa and this is to be expanded to others, filling a need which has become critical for many of them.

In terms of human relations, the Relação Activa (Active Relationship) scheme was set up. The aim is to identify and characterise the employees of the Group in relation to a profile encompassing skills, motivation and potential. The Training Centre started a quartely bulletin aimed at improving information on training policy. In the same field, CA Seguros developed a wide-ranging project on Upgrading and Management of Human Capital, in conjunction with SDO Consultoria. This included a skills model for defining functions, employee appraisal and pinpointing key personnel in the organisation. It is now possible for Caixas to have direct access to BPnet and thus take advantage of new technologies and computer insfrastructures. By year-end, over 60 Caixas had joined the scheme. The Caixas also reacted positively to the process of setting up effective audit procedures. Many enrolled staff on the course run by the Portuguese Banking Institute and the Group s Audit Unit. The course was well publicized and very well run by the training staff. With the aim of bolstering internal control procedures in SICAM, many fundamental tools were made available at a whole range of levels. The 2nd Managerial Staff Meeting was held during the year. Its aims are two-fold: to strengthen Group culture and to provide information about the reorganisaion and modernisation projects at the Group. The AGM of SICAM took place on 25 November. Elections were held for the governing bodies of the Caixa Central for the three-year period 2007-2009. They took office on 2 January 2007. 5

4. Main Indicators 2004 2005 2006 % % 05/04 06/05 Customer deposits 7,599,09 8,46,406 8,630,478 7.2% 5.9% Credit to customers 6,58,44 6,863,579 6,965,977 4.3%.5% Net assets 8,696,048 9,364,70 0,090,90 7.7% 7.7% Operating income 656,859 738,050 828,237 2.4% 2.2% Financial margin 35,897 32,345 337,953 -.% 8.2% Net worth 396,075 394,854 432,584-0.3% 9.6% Net results 89,892 86,799 95,577-3.4% 0.% Cash Flow 78,870 74,956 63,434-2.2% -6.6% Solvency ratio (Group)* 2.9% 4.0% 4.9% ROE** 4.7% 2.4% 2.2% Efficiency ratio 52.5% 56.4% 57.2% Number of Caixas 8 05 Number of branches 66 628 632 Average net assets per Caixa 7,754 8,993 9,648 4.3%.8% Average number of branches per Caixa 5.2 5.7 6.0 * Including the year s results ** In the 2005 Report, ROE was calculated from the end of year figure for capital, on the basis of the RL/SL ratio, In this Report, it is based on average capital: RL/((SL ano n +SL ano n-)/2) The main indicators show an improvement over 2005 in most areas. The most salient feature on the Balance Sheet is the figure for net assets, coming in at over 0 thousand million euros. Customer deposits grew at a slightly lower pace than a year earlier. This was partly as a result of an economic context that made it difficult to save, but also because of the aggressive competition on deposit rates. 6 Credit grew steadily, however, bringing the transformation rate across SICAM down from 84.3% to around 80.7%. This boosted liquidity in the interbank market (coming in at around 964 million euros, including funds held at central banks). Net assets and operating income grew significantly, with the latter ending the year at around 828 million euros. On the Profit and Loss Account, figures showed strong gains, with net results standing at the highest point ever in the history of SICAM. The rise in the efficiency ratio keeps the Group among the best in the banking system but it also reflects recent investment in modernisation, and this will steadily be offset as projects are finalised. Average net assets in associated Caixas rose by.8% over the year as business grew and the number of Caixas fell as a result of mergers. Average net assets per Caixa now stand at 9.6 million euros and the average number of branches per Caixa is 6.