#1novobanco INVESTOR PRESENTATION & PERFORMANCE REVIEW November 2022#2DISCLAIMER This document may include some statements related to the novobanco group that do not constitute a statement of financial results or other historical information. These statements, which may include forward-looking statements, targets, objectives, forecasts, estimates, projections, expected cost savings, statements regarding possible future developments or results of operations, and any forward-looking statement that includes statements such as "believes", "expects", "aims or intends", "may" or similar expressions, constitute or may constitute forward-looking statements. By their nature, forward-looking statements are inherently predictive, speculative, and involve risk and uncertainty. There are many factors that can lead to results and developments that differ materially from those expressed or implied in forward-looking statements. These factors include, but are not limited to, changes in economic conditions in countries where the novobanco group has operations, tax or other policies adopted by various governments or regulatory entities in Portugal and in other jurisdictions, levels of competition from other Banks or financial entities, and future exchange rates and interest rate levels. novobanco expressly disclaims any obligation or commitment to make any forward-looking review included in this document to reflect any event or change in future circumstances occurring after the date hereof. This document includes unaudited financial information. Novo Banco, SA I Av. da Liberdade, n. 195 Lisboa, Portugal Share Capital: 6 304 660 637.69 Euros represented by 10 391 043 938 shares NIPC: 513 204 016 I LEI: 5493009W2E2YDCXY6S81 novobanco 2#3AGENDA Overview of novobanco 9M22 Financial Performance Annex novobanco 3#4novobanco is a Portuguese bank focused on serving the domestic market, which is on track to successfully deliver the restructuring process novobanco 1.5 million ~€47bn ~€230bn Nominal GDP Expected in 2022 Lending Assets ~€250bn Banks total assets at €450bn ~€25.8bn Population Total Deposits ~10 million ~€360bn (<15 yrs: 13%; 15-64yrs: 65%; >65yrs: 24%) Households: €183mn (51%) 56% Financial & Non-financial: €84bn Number of Clients as of Sep-22 Total Assets a leading player in Portuguese market Gross Loan Book +2.6% YoY Weight of Corporates in the loan book Branches 300 ~70% Top 5 Banks share Of Total lending assets 10.7% % of total loans novobanco market share 49% +22 corporate centers Commercial Cost to Income recurrent basis ROTE 12.4% 9M22 pre-tax novobanco 4#5novobanco is now geared towards commercial transformation after completion of its restructuring process 2014 2017 2020 End of 2021 2022 beyond Creation of novobanco Lone Star acquisition Restructuring cycle Renovation & Relaunch 囚 Bi Do می transformation سى • Creation of novobanco following the resolution applied to BES by Banco de Portugal • Lone Star acquires 75% share capital of novobanco, with the remaining 25% being owned by Fundo de Resolucao •Reduction of legacy exposure and delivering commitments, demonstrating resilience and performance capacity • New phase as a commercial bank with strong presence in the corporate sector and close customer relationships New strategic plan focused on maximizing value for customers, maintaining profitable operations and capital efficiency novobanco 5#6During the restructuring cycle, novobanco maintained strict discipline and, as of 2021, ensures value creation for stakeholders Net Income -788 (€ million) you -1,059 -1,413 -1,329 +€1.1bn Interest Bearing Liabilities (%) Core Banking Income (€ million) +17% CAGR1 428 185 +123% 1.48% 448 1.14% 386 395 0.73% 281 0.51% 0.35% 0.18% 0.26% 201 179 307 -2,298 2016 2017 2018 2019 2020 2021 9M22 2016 2017 2018 2019 2020 2021 9M22 € million 465 68 83 2016 2017 2018 2019 2020 2021 9M22 Operating Costs -7% CAGR1 NPLs (€ million) (€ million; %) -31% CAGR1 Real Estate Exposure (€ million; %) -31% -85% -21% CAGR¹ -69% 591 11,288 549 10,130 487 479 432 408 314 6,739 3,430 2,498 1,749 1,605 2016 2017 2018 2019 2020 2021 9M22 2016 2017 2018 2019 2020 2021 9M22 Employees 6 096 Branches 537 4 139 300 NPL % 33.4% 5.7% 5.0% % of Assets² 5.1% novobanco (1) CAGR from 2016-2021; (2) Jun/22 pro-forma consider the sale of the logistiscs portfolio announced on May/22; 2,670 2,490 2,035 1,133 881 824 714 III 2016 2017 2018 2019 2020 2021 9M22 1.8% 1.5% 6#7novobanco maintained its activity constant, despite adjustments in its size Customer Deposits (€ billion) 25.6 +7% Total Assets (€ billion) 29.7 28.3 28.6 27.8 27.3 26.1 -15% 52.3 52.1 48.3 47.0 45.3 44.4 44.6 2016 2017 2018 2019 2020 2021 Sep-22 2016 2017 2018 2019 2020 2021 Sep-22 Customer Loans (€ billion; gross) Branches and Employees (number) 6,096 5,488 Employees 5,096 4,869 4,582 4,193 4,139 -26% 33.8 31.4 Internacional 537 30 473 28.7 27.1 25.2 24.9 25.8 25 402 387 359 21 12 311 300 Domestic 507 448 381 375 358 310 299 2016 2017 2018 2019 2020 2021 Sep-22 novobanco 2016 2017 2018 2019 2020 2021 Sep-22 7#8A domestic player in a market with 2022E GDP growth >6.5%, with resilient private consumption, strong recovery in tourism and rise in net exports... Annual GDP growth (%) 2022 2023 6.2 6.7 6.5 5.5 Unemployment rate (% labour force) 20 Employment (RHS) 5,000 4,800 15 4,600 3.1 Unemployment rate 4,400 1.2 1.3 10 (LHS) 6.1 4,200 0.7 0.5 4,000 5 3,800 2021 Portugal Portugal Portugal (IMF) (PubFinCouncil) (Budget'23) Euro Area (IMF) 0 3,600 2000 2003 2006 2009 2012 2015 2018 2021 INE house price index and transactions (% YoY; # thousands) Industrial production and services turnover (% YoY; 3m MA) # Transactions 15 (RHS) 13.2 40 50 Prices % YoY 10 40 20 (LHS) 43.6 5 30 0 0 20 23.0 Services Turnover 2.2 Industrial Production -20 -5 10 -10 0 -40 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2006 2008 2010 2012 2014 2016 2018 2020 2022 novobanco 8#9...with a solid Balance Sheet... Consolidated Balance Sheet (€mn) 46,992 46,992 44,619 44,619 6% Other Assets 7% 7% 2% 2% Tax Assets 2%2% 6% 7% Equity Real estate 3% 4% Other liabilities 3% 24% Debt Securities 23% Securities 61% 61% Customer 52% 53% loans Customers Deposits Assets • Net customer loans growth €0.9bn YTD reflecting the higher pace of origination. Performing loan book €24.2bn growing +€1.1bn • Securities increased by €0.9bn YTD, building up liquidity given the repayment of TLTRO III Liabilities ⚫ Customer Deposits growing €1.3bn (+4.6% YTD), with the outperformance of the Retail segment; • Other Liabilities change (+€1.0bn YTD) mostly due to transactions pending settlement and derivatives margin and clearing accounts Capital & Liquidity • CET 1 ratio of 12.7%, +90bps capital generation QoQ, from organic profitability and acceleration of balance sheet deleverage (disposal of high density RWA); • Comfortable liquidity position with LCR at 193% and NSFR at 108%. Loans & 22% 24% advances to 13% 14% Due to Central Banks & Banks Banks Dec-21 Sep-22 Sep-22 Dec-21 Assets Equity & Liabilities novobanco 9#10...and a new strategic plan focused to maximize value for customers, maintaining profitable operations and capital efficiency A leading player in the Portuguese market Total Assets - Domestic activity1 (Portuguese Banks, €bn) 66 99 Dec-17 800 98 10 70 54 ..... Jun-2022 59 62 53 #4 47 46 33 43 Customer-centric Simple & efficient Reflecting evolving customer expectations through distinctive value propositions Leveraging digital and an omnichannel approach as drivers of service and proximity Simplifying the banking experience, through a superior usage of technology and data Improving internal processes to upgrade productivity and efficiency Skilled talent pool Sustainable business Bank 1 Bank 2 Bank 3 novobanco Bank 4 Total Loans Market Share of 10.7% Attracting and developing a team of skilled, experienced and diverse professionals Developing a dynamic, collaborative culture in an environment adapted to the new ways of working novobanco (1) Source: Results Press Releases (Novo Banco, CGD, Millennium BCP, Santander Totta); Delivering sustainable returns through disciplined risk, capital and funding management Strengthening integration of ESG across business to support sustainable growth and key stakeholders 10#119M22 achievements confirm novobanco execution skills and pave the way forward... Customer-centric 1.5 million clients including 56% of [ SMEs in Portugal Simple and efficient Skilled talent pool Sustainable business novobanco $ €2.9bn Loans originated in 9M22 57.4% Active digital channels; Production +276% YoY 56.2% > 65% 49% Forms signed with phygital Households: % of self- service transactions Cost to income (recurrent basis) $ 4 139 Employees of Grupo novobanco > 54% Women 12.4% Return on Tangible Equity 89% 9M2022 Very satisfied clients - Medium Enterprise €149.1k (+3% YoY) Commercial banking income per avg employee -19 Average seniority of employees 5.8k Hours of ESG training to employees 18.7% MREL Ratio (above binding of 17.66%) 82.8% Loan to Deposit Ratio 000 €279.6mn Financing in green investment (EU Taxonomy) 11#12...being on track to deliver medium-term guidance with targets to be updated, by year end, to reflect current market environment 9M21 9M22 Medium-term targets Underlying Profitability (Єmn; pre-tax) Commercial Loan Book (performing) €22.8bn €24.2bn (+4.6% YTD) 2-3% per year Expanding loan book 12.4% 11.0% 10.2% Net Interest Margin 1.43% 1.32% (pro-forma) [1.30 1.50%] Set to benefit from Euribor repricing 8.7% 8.8% 8.2% 7.6% 107.1 Cost-to-income 48% 49% (recurrent basis) < 45% Efficient operations 85.1 77.9 76.5 75.1 68.6 59.7 COR 61bps 20bps < 50 bps Achieving moderate risk profile NPL ratio 7.3% 5.0% < 5% Converging towards EU average 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 ROTE (pre-tax)1 8.2% 12.4% ≥ 10% Delivering organic attractive returns CET 1 10.9% 12.7% > 12% Accelerating capital generation ROTE (cumulative annualised; 12% RWA) novobanco (1) Tangible Equity = average phased-in RWA x 12%; Annualized; Considers Underlying profitability pre-tax deducted by special tax on banks (€34mn on annual basis) and contributions to Resolution Funds (€40.9mn on annual basis) 12#13Continuous improvement of underlying performance, further confirming the sustainability of its trajectory Theme 1: 9M 2022 Results NII (Єmn) and NIM (%) evolution Cost of Risk (annualised; %) Normalized CoR 1.79% Assets 1.52% 1.57% 1.49% 1.53% 0.68% 0.61% 0.60% NPL ratio and Coverage (%) Covid-related CoR NPL entries; % of performing loans 78% 82% 71% 71% 73% 77% NIM 7.3% 7.3% 1.32% 1.31% 1.36% 1.35% 5.7% 5.7% 0.23% 0.20% 5.4% 5.0% 1.18% 0.15% 0.40% 0.40% 0.31% 2021: 1.5% 0.6% 0.47% 0.37% 0.20% 0.18% 0.22% 1H21 9M21 2021 1Q22 1H22 9M22 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Liabilities Commercial Bl per avg. Employee (€ k; #) Underlying Profitability (€mn; pre-tax) Jan Feb Mar Apr May Jun Jul Aug Sep Employees ROTE (cumulative annualised; 12% RWA) 4 470 4 362 4 193 4 182 4 167 4 139 Commercial 209 216 213 218 202 210 209 217 12.4% BI 11.0% 10.2% 63 73 72 75 Fees 69 76 71 71 47.9 48.3 50.9 48.3 50.3 50.4 8.7% 8.8% 8.2% 107.1 145 85.1 76.5 75.1 NII INY 146 144 141 143 134 134 138 68.6 59.7 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 3Q22 novobanco Pro-forma 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 +8% QoQ ex-TLTRO 13#14Capital increasing by 1.0pp in the 3Q22, driven by capital-accretive business model... Theme 2: Capital Evolution Total Capital: Ratio Evolution (phased-in¹; Preliminary; bps) Excludes +25bps Restructuring funds sale already signed +0.36% +0.19% 14.9% >15.0% +0.42% +0.42% 13.9% 1.5% +0.28% 13.1% +0.23% 12.9% +0.30% -0.09% -0.34% Total Capital Dec-21 Including lower RWA driven by improving PDs following exit of loans from moratoriums in 2021 13.5% IFRS 9 1Q Results² Other effects Total Capital 2Q Results² Sale of logistics REO3 Other effects Mar-22 Total Capital Jun-22 3Q Results² Sale of HQ Other effects³ Total Capital Target4 Post Dec-22 building & REO Sep-22 ...and execution of measures to continue to comply with capital requirements going forward. Execution of the de-risking strategy delivering Total Capital already above 13.5% OCR requirement and building P2G buffer. novobanco (1) Estimated; Phased-in ratios; The inclusion of positive results depends on an authorization from the ECB; (2) Excludes Markets Results, which is classified as Treasury results; (3) Closed in Jul- 22; -82% of assets transferred to the buyer; remaining to be transferred once necessary approvals obtained; 14#15Theme 3: MREL Compliant with MREL binding target as of January 1st 2022 and to continue to build MREL going forward MREL requirements: (BdP notification of May 2022; %) Jan-22 Jan-26 TREA¹ 15.14% 23.16% Combined Buffer 2.52% n.a.2 Total LRE³ 17.66% 23.16% + CBR 5.91% 5.91% MREL ratio (%RWA; Preliminary) 18.7% 17.7% 0.5% 3.3% Other eligible ≥ 1 year Senior Unsecured ≥ 1 year 2.2% Own Funds - Tier 2 12.7% Own Funds - Tier 1 Jan-22 Binding Sep-22 Organic capital generation and acceleration of balance sheet deleverage to contribute positively to MREL evolution. novobanco (1) TREA - Total Risk Exposure Amount; includes O-SII defined at LSF Nani Investments as communicated by Banco de Portugal on its website on 30 Nov 2021, the O-SII increased from 0.375% to 0.5%; (2) As of Jan-26 applicable combined buffer requirement; (3) LRE - Total Leverage Exposure 15#16With ~90% of the loan book floating, the repricing of Euribor will lead to higher NII Theme 4: Interest Rates 6-months Euribor curve (%; as of 18-Jul) Loans to Customers (Gross Book Value; €bn) Loan-to-Deposit ratios in Europe² (%; March Data) 2.00% GAP 1.59% Consumer & Other €25.5bn 6% €25.5bn -10% 250% 1.34% 1.50% Market Mortgage % Fixed % Floating 38% 147% 1.00% 0.71% ~90% -20% 1M 101% 98% 94% 81% 78% 61% 0.50% 0.03% 0.15% -25% 3M 0.00% Corporate 56% With 46% of the floating loans floored -30% 6M (from corporate) -0.50% Business Plan -25% 12M 범프씰 뜨 암스 -1.00% Segment Interest 1 Rate Type Ample liquidity in Jan-22 Mar-22 Jun-22 Sep-22 Dec-22 Portuguese banking sector ~€3.0bn of investment portfolio, yielding ~0.7%, matures within 2 years; investment portfolio at amortised cost is >50% hedged No zero Euribor floor on mortgages • No structural deposits hedges • No negative rates for retail & corporate deposits in Portugal novobanco (1) After hedging: (2) Source: ECB - SDW 16#17Moving towards expanding loan book with €2.9bn customer loans originated YTD Theme 5: Growth Loans to Customers: Origination (€bn; %) Corporate Mortgage 44% Consumer & Other New Distribution Model & Omnichannel • Promote customer relationship: an innovative functional layout focused on customer relationship and an integrated experience (ie: distinctive self- service, employee mobility, digital communication) . • • 3-yr nationwide investment program of ~€120mn Deploying a specialized approach for priority sectors (ie: Agriculture, Tourism, Manufacturing, Retail & Services) • Partnering with specialists to provide our customers a wide range of solutions (ie: EU-funding) 1.0 1.0 1.0 Reconfiguration 8% 0.9 9% 10% of Sectorial View 0.8 11% 25% 11% 0.6 29% 32% 0.6 27% 12% 39% 8% 35% 35% 66% 62% 58% 61% 50% 57% 53% New Capital allocation model ⚫ Dynamic allocation of balance sheet growth between different segments and its capital impact 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 • To determine each segment profitability (with strategic implications); 205 Branches converted (~70% of total) SME representing >65% of Corporate origination Pricing of new loans is subject to RAROC hurdles New management team and organization focused to deliver the next stage of novobanco's development, competing as a strong and independent Portuguese corporate and retail bank novobanco 17#18Final Remarks Delivering improved profitability with consistent profits over the last 7 quarters, reflecting a solid performance of the top-line together with efficiency measures implemented in recent years. Expanding the loan book with business performance in line with expectations for this first semester, despite the highly challenging environment. Maintaining a clear profitability turnaround enabled by restructuring efforts over recent years, delivering organic ROTE of 12.4% (pre-tax). Total Capital at 14.9%, increasing by 100bps in the quarter driven by strong bottom line profitability and specific measures to ensure compliance with normalised post-pandemic capital requirement. On track to meet medium term financial targets announced at 2021 Capital Markets Day, with significant improvements across all KPIs. novobanco 18#19AGENDA Overview of novobanco 9M22 Financial Performance Income Statement Balance Sheet Annex novobanco 19#20Continuing to deliver improved profitability... I novobanco announces a net income of €428.3mn (9M21: €154.1mn; 3Q22: €161.6mn) and ROTE¹ improving to 12.4%. The business performance is in line with expectations. The results confirm continued and stable profitability of novobanco as well as its underlying ability to consistently and organically generate capital. Moving towards an expanding loan book with €2.9bn customer loans origination in 9M22 (+44% YoY), of which 57% in the corporate segment. Net customer loans at €24.6bn (+€934mn YTD) reflecting the growth of the market-leading corporate segment, as well as the mortgage loan book. Deposits increasing by 4.6% YTD (€1.3bn), driven by the Retail segment. NII was €405.9mn (-5.6% YoY), with YoY evolution reflecting the improvement of the assets average rate and, on the other side, the impact of senior debt issuance in 4Q21 and accounting of TLTRO 3 interest expense based on forward-looking ECB deposit rate. NII, reflecting amended TLTRO III, would be €7.5mn higher. Reflecting a strong performance and an improved quarterly trend, fee income increased by +3.8% YoY. Operating costs of €314.2mn (+2.8% YoY) given one-off costs, cost control remains in place with Cost/Income ratio² at 49% on a recurrent basis. COR of 20bps (9M21: 61bps or 40bps ex-Covid related provisions) benefiting from successful recovery of moratoria clients, resilient asset quality and contained macroeconomic impacts. NPL ratio of 5.0% (Dec-21: 5.7%; Dec-20: 8.9%) and a NPL coverage at 77.2% (Dec-21: 71.4%), given the successful ongoing de-risking strategy. RE exposure decreasing to 1.5% of total assets (-0.3pp YTD). Driven by strong bottom-line profitability, CET 1 increased 90bps in the quarter to 12.7% reaching a capital generation of 160bps YTD, fully-loaded CET 1 at 12.1% (+200bps YTD). Total capital ratio reached 14.9% (Jun/22: 13.9%), above the 13.5% OCR³ requirement allowing build-up of P2G buffer. A capital accretive business model, RWA discipline, combined with specific management action ensure early compliance with normalised post- pandemic capital requirements. novobanco (1) Tangible Equity = average phased-in RWA x 12%; Annualized; Considers Underlying profitability pre-tax deducted by special tax on banks (€34mn on annual basis) and contributions to Resolution Funds (€40.9mn on annual basis); (2) Cost to Income defined as Operational Costs divided by Commercial Banking Income; (3) OCR - Overall Capital Requirement 20 20#21... reaching RoTE of 12.4%, a further confirmation of the sustainability of its trajectory From Income Before Tax to Underlying Profitability (9M22; €mn) +148% YOY 514.3 (15.4) (63.7) (77.1) (67.0) Income Before Tax Special Tax & Market Resolution Funds contributions (pro-rata) Results² novobanco Underlying Profitability (Єmn; pre-tax) 12.4% 12.4% 11.0% 10.2% ROTE¹ 8.7% 8.8% 8.2% 7.6% 107.1 85.1 77.9 76.5 75.1 +7.7 68.6 267.3 59.7 C======= (31.7) Gain from the sale of: RE portfolio (Logistics) Head Office Non-recurring Release Underlying Operating of provisions Profitability costs for Other (pre-tax) contingencies 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 ROTE (cumulative annualised; 12% RWA) A solid business model delivering RoTE1 of 12.4%, with further upside driven by increasing interest rates and assets repricing. (1) Tangible Equity = average phased-in RWA x 12%; Annualized; Considers Underlying profitability pre-tax deducted by special tax on banks (€34mn on annual basis) and contributions to Resolution Funds (€40.9mn on annual basis); (2) Excludes dividends from strategic holdings 221 21#22A four-pillar strategy to maximize value for customers, maintaining profitable operations and capital efficiency Customer-centric bank Simple and efficient operations Developing people and culture Delivering sustainable performance Mission: To serve the needs and expectations of our customers 205 5.7 New Distribution 116 ~70% Model of all branches Loans per average FTE (€million) (# branches) Dec-21 Sep-22 Virtual Teller Machines (# branches) 99 65 180 6.2 -27% YoY NPL Stock +9% Improving Asset Quality: NPL ratio 5.0% 9M21 9M22 Deposits per average FTE 6.9 6.0 (Єmillion) +115 +14% Dec-21 Sep-22 novobanco 9M21 9M22 12.4% Sustainable ROTE 12.7% CET 1 Capital accretion (+160bps YTD) 22 22#23Competing as a strong and independent Portuguese bank focused on serving the domestic market Corporate Market Share: Stock1 Deposits Market Share: Stock 13.8% 13.4% 13.6% 13.8% 9.2% 9.3% 9.4% 8.9% Jan-22 Mar-22 Jun-22 Aug-22 Jan-22 Mar-22 Jun-22 Aug-22 Mortgage Market Share Stock and monthly Production Consumer Market Share: Stock and monthly Production 4.9% 4.8% 5.1% Stock 9.1% 9.1% 4.4% Production 3.8% 3.9% Production 7.8% Stock 7.1% 6.4% 6.8% Jan-22 Mar-22 Jun-22 Aug-22 novobanco Jan-22 Mar-22 Jun-22 Aug-22 Leveraging digital and an omnichannel approach as drivers of service and proximity, increasing the pace of origination and moving towards an expanding loan book. Being recognized by clients and the market: Finovate Awards FINALIST Best Customer Experience: App Best Consumer finance lending: Personal Finance Journey Best SME Banking Solution: online empresas Source: Novo Banco analysis; Market data source: BoP for Deposits and Loans; (1) Global corporates market share, including loans, deposits and other products such as Trade finance and POS 23 23#24AGENDA Overview of novobanco 9M22 Financial Performance Income Statement Balance Sheet Annex novobanco 24 24#25A strong 3Q performance with a positive NIM trend: higher Euribor, more than offsetting funding costs and TLTRO III phase-out Income Statement (Єmn) 1Q22 2Q22 3Q22 AQOQ €mn Net Interest Margin: Monthly evolution (Єmn) 1.79% Net Interest Income 133.5 134.5 137.9 +3.4 Assets 1.52% 1.45% 1.49% 1.52% 1.57% 1.65% 1.48% 1.53% + Fees & Commissions 68.8 75.6 71.3 (4.3) = Commercial Banking Income 202.3 210.1 209.2 (0.9) NIM 1.32% 1.29% 1.31% 1.32% 1.36% + Capital Markets Results 91.4 -5.6 -17.6 + Other Operating Results 16.7 56.5 88.0 (12.0) +31.5 Liabilities 0.20% 0.17% 0.18% 0.21% 0.22% 0.27% 1.22% 1.18% 0.37% 0.36% 1.30% 1.35% 0.47% = Banking Income 310.4 261.0 279.6 +18.6 - Operating Costs 103.6 105.1 105.5 +0.4 Jan Feb Mar Apr May Jun Jul Aug Sep = Net Operating Income 206.8 155.9 174.1 +18.2 Net Impairments & Provisions 21.8 -2.0 2.7 = Income Before Tax 185.0 157.9 171.4 - Corporate Income Tax 7.4 11.6 8.9 +4.7 +13.5 (2.7) Net Interest Income: Quarterly evolution (Єmn) +8% QoQ ex-TLTRO 145.7 143.5 140.9 143.2 145.4 133.5 134.5 137.9 - Special Tax on Banks 34.1 = Income after Taxes 143.5 146.4 162.5 +16.1 Non-Controlling Interests 0.9 22.3 0.9 (21.4) Amended TLTRO III terms (27 Oct) imply +€7.5mn increase = Net Income for the period 142.7 124.0 161.6 +37.6 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 3Q22 Pro-forma novobanco 25#26The 9M22 shows a significant improvement in profitability when compared with previous period Income Statement (Єmn) ▲ YOY 9M21 9M22 €mn . 1 Net Interest Income 430.2 405.9 (24.2) + Fees & Commissions 207.9 215.7 +7.8 2 = Commercial Banking Income 638.0 621.6 (16.4) + Capital Markets Results 33.7 68.2 +34.5 • + Other Operating Results 1.2 161.3 +160.0 = Banking Income 672.9 851.1 +178.1 3 Operating Costs 305.7 314.2 +8.5 = Net Operating Income 367.2 536.8 4 Net Impairments & Provisions 159.6 22.5 = Income Before Tax 207.6 514.3 +169.6 (137.1) +306.8 • - Corporate Income Tax 13.0 27.8 +14.8 - Special Tax on Banks 34.2 34.1 (0.1) = Income after Taxes 160.4 452.4 • +292.0 Non-Controlling Interests 6.3 24.0 = Net Income for the period 154.1 428.3 +17.8 +274.3 novobanco NII at €405.9mn backed by loan book expansion and stable customer margins, set to benefit from a favorable rate environment. YoY deviation explained by senior debt issuance in 4Q21 and conservative accounting for TLTRO III interest in 3Q22, which reflected expected evolution of the ECB rates until its maturity; Commissions with a strong performance in payments given pick-up in business activity and revised pricing; Capital Markets Results positive by €68.2mn mostly due to gains from the hedging of interest rate risk. The fair value reserves decreased by €275mn; Other Operating Results of €161.3mn includes €77.1mn of gains from the sale of logistics assets in 2Q22 (€58.5mn net of non-controlling interests) and €71.5mn (€67.0mn net of contingencies) from the sale of the headquarters building in 3Q22, offsetting €40.9mn of contributions to resolution funds; Operating costs reflects the continued optimisation, investment done in the new distribution model, and the reduction of staff costs given the lower number of employees, being stable YoY on a recurring basis (€306.5mn); Provisions at €22.5mn reflecting the quality of the portfolio after the execution of the restructuring process (Cost of Risk was 0.20%, -41bp YoY); Net Income of +€428.3mn (+€274.3mn; +178% YoY) reflecting a stable performance of commercial activities and lower credit impairments. 26#271 Loan book expansion with defending rates, reaching NII of €413mn pro-forma for the amended TLTRO III terms Net Interest Income (NII) Net Interest Margin (NIM) € million; % Customer Loans 9M21 Avg. Avg. Income/ Balance Rate Costs 9M22 Avg. Avg. Income/ Balance Rate Costs Net Interest Income (€mn) -5.6% Corporate loans Mortgage lending Consumer loans and Others Money Market Placements Securities and Other Assets 24,960 2.02% 13,702 2.34% 9,891 1.04% 1,366 5.90% 4,361 0.12% 10,325 1.28% 383 244 78 25,360 2.07% 14,116 2.36% 399 252 430.2 9,808 1.12% 83 61 1,436 5.79% 63 4 6,240 -0.20% -9 (15.7) (20.7) +20.9 413.4 405.9 (8.8) 100 9,964 1.36% 103 Interest Earning Assets & Other 39,646 1.62% 487 41,564 1.56% 492 Accounting based on avg exp. ECB depo rate until maturity; €8.2mn pro-forma for amended TLTRO terms Pro-forma for amended TLTRO (27 Oct) terms Customer Deposits 26,512 0.20% 40 28,124 0.15% 32 Money Market Funding 10,455 -0.50% -40 10,497 -0.23% -18 Other Liabilities 1,014 6.70% 52 Interest Bearing Liabilities & Other 39,686 0.17% NIM / NII¹ 51 1.43% 430 1,443 6.37% 41,564 0.26% 1.29% 70 83 406 9M21 TLTRO III 2021 Loans & (liability) Issuance Deposits Other 9M22 9M22 Pro-forma novobanco (1) With stage 3 impairment adjustment; 27 27#282 Fees grew 3.8% YoY, driven by economic recovery and increased transactionality Fees: Quarterly Evolution (Єmn) Fees: evolution per type (€mn) +3.8% 207.9 215.7 9.1 2021 62.8 Advising, 11.1 1Q +9.6% Servicing & Other 49.2 -1.6% 2022 68.8 50.0 Asset Management & Bancassurance 2021 72.8 63.7 +1.8% 2Q +3.9% 2022 75.6 On Loans, Guarantees & similar 62.5 2021 72.3 3Q -1.4% 2022 71.3 Accounts and payments 93.8 84.3 +11.2% 9M21 9M22 • Asset management & bancassurance fees (-€0.8mn; -1.6% YoY): reflecting higher fees in mutual funds, offset by lower fees in real estate funds given continued deleverage. • Commissions on Loans, Guarantees and similar (+€1.1mn; +1.8% YoY): reflecting volume of guarantees and loans. • Accounts and Payments (+€9.5mn; +11.2%) due to a higher volume of transactions and new pricing implemented in March for customer accounts. novobanco Higher volume of transactions and new business are expected to drive fee income expansion. 28 28#293 Stable YoY operating costs reflecting the continued optimisation and simplification of the organisation and its processes,... -223 Consolidated Operating Costs (%; €mn) Employees per area 4,362 4,193 4,139 (#) +0.3% Other areas 1,941 1,884 1,880 +2.8% on a recurring basis 305.7 314.2 Commercial 2,421 2,309 2,259 D&A 25.0 29.4 Units +18.0% Sep-21 Dec-21 Sep-22 G&A 105.3 115.0 +9.3% Number of branches -34 Staff -3.3% Cost 175.5 169.8 9M21 Cost to Income1 48% 9M22 51% 49% on a recurring basis International 334 311 300 1 1 Domestic 333 310 299 Sep-21 Dec-21 Sep-22 … the reduction of staff costs, and the investment done in the business and new distribution model. On a recurring basis, operating costs increased by 0.3% (to €306.5mn). novobanco (1) Defined as Operating Cost divided by Commercial Banking Income; Commercial Banking Income being equal to Net Interest Margin plus Fees and Commissions 29 29#304 Provisions below run-rate reflecting a benign economic environment in 9M22 Impairment and Provisions (Єmn; %) Loan Provisions 159.6 Other 27.2 Securities 17.4 Loan Provisions Securities Other Cost of Risk & Loan Provisions (€mn; bps) Reported 61bps Covid Adjusted 40bps 22.5 Includes: 115.0 Includes: • €40mn additional 115.0 impairment within 44.0 the scope of Covid-19 Provisions for a specific corporate exposure; Provision for Russian Federation corporate exposure (€4mn) Covid-19 Impairment/ related sectors 40.2 39.5 9M21 novobanco 20bps 39.5 Includes: -61.0 • Includes reversal of specific provisions related with contingencies and potential claims Other loan Impairments 74.8 39.5 9M22 9M21 9M22 (1) As of Sep-22 total exposure to corporates from Russian Federation was €10.7mn recorded at fair value through other comprehensive income; no Russian Federation sovereign exposure. 30 30#31Declining YTD NPL stock, benefiting from successful recovery of moratoria clients and contained macroeconomic impacts Non-performing Loans Evolution (%; Єmn; Gross NPL¹) -27% NPL ratio & Coverage evolution1 (%; Consolidated reported figures) NPL ratio NPL coverage 82% 74% 71% 77% 56% 2,195 11.8% +148 1,749 (257) 8.9% 7.2% +34 1,605 5.7% 5.0% (22) (48) -€109mn Net formation 2019 2020 Sep-21 2021 Sep-22 New Entries NPL (Єmn) 388 365 108 332 148 Sep-21 Dec-21 New Cures & Sales Write-offs Entries Recoveries (Gross) Forecl. Sep-22 & Other % performing loans² 1.8% 1.5% 0.5% 1.4% 0.6% YTD Net formation of NPL at -€109mn and recent NPL reduction benefitting from sale of portfolios, being capital accretive and demonstrating adequacy of NPL coverage novobanco (1) NPL as per BdP definition (see glossary - annex for further detail); (2) average performing loans 31#32Lower YTD stage 2 exposure mainly from debtors with moratorium concessions during 2021 reverting to stage 1 Loan Portfolio1 by Stages Stage 3: Coverage by type Impairment RE Collateral GBV Stage 3 8% 6% 6% Stage 2 17% 18% 15% Corporate 52% 50% 102% €1.3bn Stage 1 75% 75% 79% Mortgage 25% 97% 122% €0.1bn Sep-21 Dec-21 Sep-22 Coverage ratios² Consumer 82% 10%91% €0.2bn Stage 2 8.2% Stage 3 7.3% 56.7% 49.7% 7.9% 54.0% Stage 3 at €1.6bn GBV, with 54% coverage² by specific impairments novobanco (1) Excludes credit institutions; Preliminary figures; (2) Specific provisions only 32 32#33AGENDA Overview of novobanco 9M22 Financial Performance Income Statement Balance Sheet Annex novobanco 333#34Maintaining a solid Balance Sheet Balance Sheet (Єmn) ▲YTD Assets Dec-21 Sep-22 €mn % Loans and advances to banks 5,922 6,553 631 10.7% 1 Customer loans (net) 23,651 24,585 934 2 Real estate 824 714 (110) 3.9% -13.4% 3 Securities 10,471 11,385 915 8.7% Non-current assets held for sale 9 12 3 29.3% Current and deferred tax assets 780 873 93 12.0% Other assets 2,962 2,870 (92) -3.1% Total Assets 44,619 46,992 2,373 5.3% YTD Liabilities & Equity Dec-21 Sep-22 €mn % 4 Customer deposits 27,315 28,582 1,267 4.6% Due to central banks and banks 10,745 10,532 (213) -2.0% Debt securities 1,470 1,467 (3) 0.2% Non-current liabilities held for sale 1 2 1 86.2% Other liabilities 1,938 2,998 1,060 54.7% Total Liabilities 41,469 43,581 2,112 5 Equity 3,149 3,411 262 5.1% 8.3% Total Liabilities and Equity 44,619 46,992 2,373 5.3% novobanco Assets • Net customer loans growth €0.9bn YTD reflecting the higher pace of origination. Performing loan book €24.2bn growing +€1.1bn • Securities increased by €0.9bn YTD, building up liquidity given the repayment of TLTRO III Liabilities • Customer Deposits growing €1.3bn (+4.6% YTD), with the outperformance of the Retail segment; • Other Liabilities change (+€1.0bn YTD) mostly due to transactions pending settlement and derivatives margin and clearing accounts Capital & Liquidity • ⚫ CET 1 ratio of 12.7%, +90bps capital generation QoQ, from organic profitability and acceleration of balance sheet deleverage (disposal of high density RWA); • Comfortable liquidity position with LCR at 193% and NSFR at 108%. 34#351 Moving towards expanding loan book with €2.9bn customer loans originated in the period Loans to Customers - Gross Book Value Evolution (€bn; %) Net 23.7 +3.9% 24.6 Loans Gross Loans +0.7 25.8 24.9 +2.9 (1.5) Consumer & (1.2) Other Mortgage 9.8 Corporate 13.7 Loans to Customers: Origination (€bn; %) Corporate Mortgage Consumer & Other 44% 1.0 1.0 1.0 8% 0.9 9% 10% 0.8 11% 25% 11% 0.6 29% 32% 9.9 0.6 27% 12% 39% 8% 10.6% 35% 35% 66% 62% 14.5 Market Share2 58% 61% 50% 57% 53% Dec-21 Stock 9M22 Origination Scheduled Non-scheduled Other Effects1 Sep-22 Stock Amortisation novobanco 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 (1) Includes restructured contracts, short-term and impairment variations and other novobanco group entities; (2) Stock figure as of August 2022; sources: Banco de Portugal, APS, APFIPP 35#361 Net Net loan book growing by 3.9% YTD to €24.6bn (+€0.9bn YTD), driven by Corporate loans (+€0.8bn YTD) Corporate loans (%; €bn) Corporate loan book by Rate Type (Sep-22; %) Corporate loan book by Sector (Sep-22; %) Loans 12.70 +6.5% 13.52 Fixed Rate Eur 1M 16% Other 28% 18% +1.64 14.52 13.71 +0.90 Gross Loans (1.73) Manufacturing 20% Wholesale 11% & Retail Eur 12M 10% €14.5bn Gross loan book €14.5bn Transport Gross loan book 6% & Storage 10% Real Estate activities 8% 24% Accommodation & food service activities 10% 8% 9% Eur 3M Construction Financial activities Professional, scientific & technical activities 22% Eur 6M Dec-21 9M22 Amortization Other Stock Origination Sep-22 effects Stock Avg. Rate¹ 2.33% 2.36% SME representing > 65% of origination and Small business > 22% novobanco (1) Average rate of the period; 90% of the Corporate book is floating (incl. hedges), majority with Euribor 0% floor 36#371 Mortgage loans representing 33% of YTD origination, with average LTV1 of 65% in the period Mortgage loans (%; €bn) Mortgage loan book by Rate Type (Sep-22; %) < Eur 1M Fixed Rate Net Loans 9.73 +1.4% 9.87 6% 4% Eur 3M 17% Gross Loans +0.96 9.78 9.92 Eur 12M 45% (0.76) (0.07) 94% Floating Rates / 100% including hedges 28% Eur 6M Dec-21 9M22 Amortization Other Stock Origination effects Sep-22 Stock Increase reflects Mortgage loan book by LTV bucket (Sep-22; %) >80% 6% [70%; 80% 18% €9.9bn Gross loan book 34% [50%; 70%[ Avg. Rate² 1.04% repricing of reference rates (Euribor) 1.12% novobanco (1) September YTD data; (2) Average rate of the period; A conservative mortgage portfolio with average LTV < 50% <50% 42% 37#382 Decreasing RE exposure to €714mn (-17%; due to portfolio sales), with TOP 20 assets representing 62% of the portfolio Evolution of Real Estate Exposure (€mn NBV) % Total Assets 1.9% 1.8% 1.5% -17% RE: Coverage by Asset Type (Sep-22 Pro-forma; €bn;%) Coverage 47% Ratio (%) 54% 44% 24% RE: breakdown (€million;%) Foreclosed REO (net) 855 GBV 0.74 824 714 681 224 170 139 Investment Impairment 0.40 0.42 properties & 681 -70 -60 -300 Top 5 high quality assets represent more than 80% of Historical sale premiums (vs NBV): 2020: 27% 2021: 21% 2022 (YTD): 32% Historical Yield of maintained portfolio 2020: 5.1% 2021: 5.9% 0.18 this bucket Other 631 654 575 0.14 ~170 2022 (YTD): 8.1% ~80 NBV 0.35 0.24 Sep-21 Dec-21 Sep-22 Sep-22 Pro-forma ex-logistics w/SPA Land 0.10 Commercial Residential & Other Sep-22 Pro-forma Sold/ Sales under 4Q22 SPA Exp. High quality plots Granular Yielding portfolio assets to be maintained novobanco Coverage is supported by a robust appraisal policy, individual asset reviews, market pricing (bids received) and yield performance. 38#393 Conservative €11.4bn securities portfolio with HQLA1 representing ~70% Securities Portfolio: Breakdown Securities Portfolio: Ratings4 (€bn) (€bn) Banking Book (excludes trading book; €bn; %) 1% 3% 0% Other 4 11.4 2% 3% 1% [B+; B-] 10.4 10.2 11.4 10.7 10.5 10% 13% 0.6 [BB+; BB-] Other² 12% 0.9 23% 0.8 4.2 32% [BBB+; BBB-] 8% Bonds³ 3.4 Amortised Cost 3.4 48% 44% 68% 72% Other Sovereign 23% [A+; A-] 3.2 3.2 debt 4.4 70% 24% 23% 6% 5% PT 20% [AA+; AA-] FVTP&L FVTOCI Sovereign 3.2 3.1 8% 8% 26% 2.2 23% debt 7% 7% 10% AAA Sep-21 Dec-21 Sep-22 Sep-21 Dec-22 Sep-22 Dec-21 Jun-22 Sep-22 Securities portfolio increasing by €0.9bn in advance of repayments of TLTRO III facility. Portfolio with an average yield of 1.36%, of which -35% floating (after hedging). • 1.4yrs duration (vs Dec-21: 4.1yrs) €0.3mn sensitivity for 1bps increase in interest rates (before hedges; Dec-21: €2.8mn); novobanco (1) HQLA: High Quality Liquid Assets; (2) Includes Funds and Equity Holdings; (3) Includes Corporate Debt and Supra; (4) Breakdown excludes Funds and Equity Holding and Commercial Paper; Considers S&P Rating and novobanco internal rating if S&P not available; Graph includes Other of 0.4% classified by novobanco as Defaulted 39#404 Customer deposits +7.8% YoY and Total Funds +6.4%... Customer Deposits & Total Funds (%; €bn) Deposits Breakdown by Customer (€bn; %) Deposits Breakdown by Type (€bn; %) +6.4% YOY +7.8% YOY +3.0% YtD +4.6% YtD Cost of Deposits 0.20% 0.19% 0.15% 32.7 33.8 34.8 Other Funds¹ 6.2 26.5 27.3 28.6 26.5 27.3 28.6 6.4 6.2 27% Non-Retail 28% 28% Sight 47% 47% 49% Deposits 26.5 27.3 28.6 Term Deposits Retail 72% 72% 73% & Savings 53% 53% 51% Sep-21 Dec-21 Sep-22 Sep-21 Dec-21 Sep-22 Sep-21 Dec-21 Sep-22 ...with evolution reflecting growth of the business despite the low interest rate environment. novobanco (1) Includes off-balance 40 40#41Stable deposit base supporting strong liquidity position 4 Loan to Deposit Ratio¹ (%) Liquidity Ratios (%) LCR2 NSFR 86.0% Eligible Assets at the ECB³ (€bn) €16.7bn €16.5bn €17.0bn 115% 117% 108% Net ECB Funding (€bn) €2.6bn €2.7bn €2.1bn +1.3pp 82.8% (4.4pp) 8.0 8.0 7.0 Gross Funding 182% 193% 150% -4.4 -5.3 Cash at -5.9 ECB Dec-21 Funding Loans Sep-22 Sep-21 Dec-21 Sep-22 Sep-21 Dec-21 Sep-22 Liquidity buffer ~€13.1bn, mostly composed of highly liquid assets (~90%). novobanco (1) LtD ratio as per BdP definition (see glossary - annex for further detail); (2) LCR stands for Liquidity Coverage Ratio; NSFR stands for Net Stable Funding Ratio; (3) Net of haircut Reimbursements: Dec-22: €1.6bn • 2023: €5.4bn . Dec-24: €1.0bn 41#42(phased-in2:3; Preliminary; %) 5 Execution of the de-risking strategy delivering Total Capital ratio already above 13.5% OCR requirement and building P2G buffer1 CET 1 Tier 1 Total Capital 12.1% Fully-loaded 12.7% CCyB CCB 8.7% 2.5% P2R 1.7% P1 4.5% Required CET 1 novobanco Relief Sep-22 CET 1 (phased-in2:3; Preliminary; %) (phased-in2:3; Preliminary; %) 14.9% 13.5% 12.7% CCyB CCB 2.5% 10.8% Excludes CCA call CCyB CCB 2.5% P2R 3.0% P2R 2.3% P1 6.0% Relief Required Tier 1 Sep-22 Tier 1 P1 8.0% Relief Required Total Capital Sep-22 Total Capital Organic capital generation and acceleration of balance sheet deleverage. (1) P2G of 1.5% applicable as of 1-Jan-23; (2) Preliminary; The inclusion of positive results depends on an authorization from the ECB; (3) On 12-Mar-20 the European Central Bank disclosed several measures that allow Banks to operate temporarily below the required capital level; P2G not included; OCR 42 Building P2G buffer of 1.5%#43AGENDA Overview of novobanco 9M22 Financial Performance Annex novobanco 43#44ANNEX Portuguese macroeconomic environment Corporate Governance & ESG 9M22 Financial Statements Ratings Glossary novobanco 44#45Macroeconomic environment Macroeconomic environment Annual GDP growth well above 6% is expected in 2022, supported by resilient private consumption, a strong recovery in tourism and a rise in net exports. Unemployment remains low. After 2.4% QoQ in the first quarter and 0.1% QoQ in the 2Q22 (12% and 7.4% YoY), GDP increased 0.4% QoQ in the 3Q22, or 4.9% YoY). Annual GDP growth is expected well above 6% in 2022 (vs. 3.1% in the Euro Area), supported by: I. Resilient private consumption growth, with removal of Covid-19 constraints, release of savings accumulated in the pandemic and policy support to households; II. Strong improvement in tourism activity and higher exports growth; III. Persistence of low unemployment rates. (1) 3Q 2022 estimate; Sources: INE, Bank of Portugal, novobanco. novobanco GDP growth (% QoQ and YoY) 1 14.6 QoQ YOY Daily indicator of economic activity, BoP (% YoY and % change vs. 2019) 40 Latest data for the week 30 1-Year ending in Oct 09 7.1 2.8 4.4 4.3 20 0.5 0.8 1.9 2.4 0.4 0.1 0.4 10 0 -2.6 -4.4 -10 1.2 -0.8 3-Year -20 -30 -15.2 2020 2021 2022 Overnight stays in tourist accommodation establishments (million) jan/20 jun/20 nov/20 abr/21 set/21 fev/22 jul/22 Unemployment rate (% labour force) 2019 2022 4.6 4.0 3.4 3.0 2.9 2.0 9.6 9.9 8.6 8.2 7.2 7.2 6.6 6.5 6.0 6.0 10 20062086420 18 16 14 12 Jan Feb Mar Apr May Jun Jul Aug 2000 2003 2006 2009 2012 2015 2018 2021 6.0 45#46Macroeconomic environment Macroeconomic environment Impacts from the war in Ukraine, through higher inflation and interest rates, should be mitigated by policy measures supporting liquidity and income, and limiting the rise in energy prices. Headline and core inflation rate (CPI, % YoY) 10 September 8 Energy and food CPI Inflation, Portugal and Euro Area (CPI, % YoY) 40.7 9.3 September CPI inflation rose from 3.3% to 9.3% YoY in 9M 2022. Producer prices were up by 19.6% YoY in September. The impact from higher inflation should be mitigated by: I. Direct income transfers to households; temporary reduction of electricity VAT from 13% to 6%; tax measures increasing household liquidity in the short term (e.g. lower tax withholding rates); 2% cap in rent increases; temporary possibility of transition to the regulated gas market; freeze in public transportation prices and tariffs; etc. II. A price cap mechanism, decoupling electricity prices from gas prices. III. €3 bn programme to mitigate the effect of the rise in electricity and gas costs for firms (estimated reductions of 30%-31% in the electricity bill and 23%-42% in the gas bill vs. costs projected for 2023). 64 2 0 -2 55 35 Sources: INE, OE 2023, novobanco. novobanco Total 6.9 Core 2008 2010 2012 2014 2016 2018 2020 2022 Industrial producer price index 95 September 75 (% YoY) Headline Energy 15 -5 -25 2011 2013 2015 2017 2019 2021 22.2 16.9 12.7 Euro Area Portugal Euro Area Portugal Energy Food Households' savings rate (4Q MA, % of disposable income) 15 13 11 34.9 9 19.6 7 пил 5.9% 5 3 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 46#47Macroeconomic environment Macroeconomic environment Improvement in public accounts has created room for policy support. NPLs and sovereign spreads remain contained. Resilient growth in house prices, supported by strong external demand. The improvement in public accounts has allowed for policy measures, mitigating the impacts from the pandemic and from the war in Ukraine. Unemployment and NPLs have remained contained. Resilient growth in house prices, supported by strong external demand. Contained rise in sovereign spreads reflects improved fundamentals vs. previous crisis. Non-performing loans (% of total gross loans) Mortgage Consumption and other NFCs Total 15 10 50 INE house price index (market prices, % YoY) 12.8 11.7 11.3 9.4 8.9 8.3 7.7 6.2 6.0 5.5 5.3 4.9 4.6 4.3 4.0 3.7 3.6 -5 3.4 -10 2010 2012 2014 2016 2018 2020 2022 2018 2019 2020 2021 2022 Public deficit and debt (% GDP) Budget Balance 160 Public Debt 80 60 40 20 ៖ ៖ ៖ ៖ ៖ ៖ ៖ 8 ° 140 120 100 2008 2009 Sources: INE, Bank of Portugal, DDAE. novobanco 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1 800 1 600 1 400 -10 1 200 21% 44 NON 10Y Periphery Government bond yield spreads vs. Bund (bps) Portugal 1 000 800 Spain 600 400 200 0 Ireland -200 2007 2010 2013 2016 2019 2022 Annual GDP growth (%) 2022 2023 6.2 5.5 6.7 6.5 13.2 LLL 0.7 1.2 Pub FinCouncil (Sep) 1.3 Budget 2023 (Oct) Italy 239 115 106 54 2021 IMF (Oct) 47#48Macroeconomic scenarios Implied Macroeconomic scenarios Unit 2022 2023 2024 2025 Base Scenario 2022 2023 2024 2025 Favourable Scenario 2022 2023 2024 2025 Adverse Scenario GDP Real growth % 6.4 2.4 2.1 2.0 6.7 3.6 3.4 2.5 5.7 -3.7 -0.9 2.0 Domestic Demand CPI Real growth % 4.5 2.1 2.0 2.0 4.6 3.9 3.2 2.5 3.7 -3.4 -0.6 1.9 % 5.9 2.6 2.0 1.7 5.9 2.1 1.8 1.7 8.7 6.6 4.3 2.4 Unemployment % labour force 5.8 5.7 5.8 5.8 5.7 5.4 5.3 5.1 6.3 9.4 13.7 11.6 Real Estate (Residential) % 8.3 2.5 4.8 5.0 8.3 6.9 5.7 4.9 7.1 -8.5 -10.1 -1.3 Real Estate (Commercial) % 3.6 -0.2 1.3 1.5 3.6 3.1 2.6 2.1 3.3 -10.3 -12.2 -1.6 Euribor (annual average) 3-month 6-month 12-month do do do % 0.01 1.62 2.02 2.08 0.01 1.75 % 0.28 1.75 2.04 2.10 0.28 % 0.65 1.87 2.06 2.15 0.65 2.40 2.53 1.88 2.42 2.55 2.01 2.45 2.58 0.37 3.23 4.28 3.60 0.64 3.34 4.27 3.55 2.25 4.42 4.12 2.97 GDP (Real growth; %) Base Scenario Favourable Scenario Adverse Scenario novobanco 6.4 6.7 5.7 3.6 3.4 2.4 2.1 2022 2023 -3.7 2024 -0.9 2.0 2.5 2.0 2025 48#49Corporate Governance A unique governance model within the Portuguese financial sector... Shareholder Structure1 (December 16th 2022; %) Direcção-Geral do Tesouro e Finanças 5.7% FUNDO DE RESOLUÇÃO 19.3% General Meeting Statutory Auditor(2) Company Secretary(3) General & Supervisory Board Executive Board of Directors Monitoring Committee(4) novobanco 75% LONE STAR through Nani Holdings, SGPS, S.A. Risk Committee(5) Financial Affairs Committee (5) Remuneration Committee(5) Nomination Committee (5) Compliance Committee (5) Committees: Risk • Financial & Credit • CALCO • Internal Control System Compliance & Product • Digital Transformation Costs & Investments • Impairment (1) as a result of the agreements celebrated between the Resolution Fund and the Shareholder Lone Star in the context of the sale of 75% of the shares of novobanco, only the Resolution Fund will see its participation diluted with the conversion of the conversion rights, pending the delivery of the shares of the Resolution Fund to Nani Holdings on November 10th 2022; (2) Elected by the General Meeting upon a proposal of the General and Supervisory Board; (3) The General and Supervisory Board is consulted prior to any proposal of the Executive Board of Directors related to the appointment of the Company Secretary and Alternate Secretary. (4) The Monitoring Committee is composed of three members. The Monitoring Committee is an advisory body for the purposes of the Contingent Capital Agreement entered into between the Company and the Resolution Fund; (5) The Special Committees are composed of members of the General and Supervisory Board. The General and Supervisory Board sets up, appoints the members and approves the internal rules of the Special Committees. novobanco 49 49#50Corporate Governance ...with 6 out of the 10 GSB members being independent, and since Aug-22, a new composition of the EBD General and Supervisory Board 4-years term: 2021 to 2024 Chairman Byron Haynes (1) Vice-chairman Karl-Gerhard Eick (1) Executive Board of Directors 4-years term: 2022 to 2025 Chief Executive Officer Mark Bourke Monitoring Committee 4-years term: 2021 to 2024 Chairman José Bracinha Vieira Members Chief Financial Officer Leigh Bartlett GSB Members Donald Quintin Kambiz Nourbakhsh Mark Coker Benjamin Dickgiesser John Herbert (1) Robert A. Sherman (1) Carla Antunes da Silva (1) William Henry Newton (1) Chief Commercial Officer (Retail) Luis Ribeiro Chief Commercial Officer (Corporate) Andrés Baltar Luísa Soares da Silva Carlos Brandão Chief Legal and Compliance Officer Chief Risk Officer Chief Credit Officer Rui Fontes novobanco (1) Independent Pedro Marques e Pereira Carlos Miguel Roballo To monitor the assets included in the Contingent Capital Agreement 50 50#51ESG ESG Strategy | Timeline 4Q 2021 Announcement of novobanco strategic plan & Internal definition of ESG targets 2023 Roll-out of Climate & Environment (C&E) risks into the loan origination framework 2024 Comprehensive assessment of the new methodology's performance >>] Business Environment: Defined annual goals for green production which were subject to thorough internal discussions, involving the key business lines and considering the potential alignment with the EU Taxonomy (a conservative approach as compared with current market practices). • A baseline amount was computed, assessing historical production by segment/ business line, that informed targets set. Monitoring on a quarterly is ensured on a segment basis. novobanco Risk management framework: • Developments for full integration of C&E risks into the loan origination framework are underway, comprising the development of risk methodologies (top down and bottom-up, incl. 'rating'), based on which the on-boarding procedures (i.e., required data) and decision framework will be adjusted. • These methodologies will provide an integrated assessment in terms of the client/ transaction risk profile and EU Taxonomy (alignment) classification. . • Implementation schedule: a) 2022YE technical developments concluded; b) 2023E pilot (covering sampled sectors)/ silent-run and roll-out (for remaining key sectors). Credit Risk: € • Simplified approaches are already in place for pricing (ie: specific credit products have been designed to include ESG criteria broadly consistent with the Taxonomy requirements; promotional pricing allowed in those cases, as they are assessed as better prepared to face the transition risks). • Once structural developments in terms of the risk methodologies are concluded, novobanco will be able to assess the performance of the classified exposures and, therefore, introduce any change to its pricing policy/model. • Methodologies to be deployed during 2023, with 2024 targeted for a comprehensive assessment of the new methodology's performance. 51#52ESG ESG Strategy | Sustainable Development Goals Goals aligned to actively contribute to the 2030 SDGs defined by the United Nations Global Compact and with the Paris Agreement. Sustainable Business Social & Financial Well-being SUSTAINABLE DEVELOPMENT GOALS Responsible Banking 8 DECENT WORK AND ECONOMIC GROWTH 13 CLIMATE ACTION 3 GOOD HEALTH AND WELL-BEING QUALITY EDUCATION DECENT WORK AND ECONOMIC GROWTH QUALITY EDUCATION GENDER EQUALITY DECENT WORK AND ECONOMIC GROWTH CLIMATE ACTION Minimize the negative environmental impact of our operations, promoting innovation and digitalization Incorporating ESG risks and opportunities in our business model and commercial offer Supporting our customers in the transition to a carbon neutral economy Ensuring equal opportunities and the well-being of our employees Promoting financial and digital literacy among our customers and public in general Tailoring products to customer needs, integrating social considerations and promoting savings Ensure ESG integration into the bank's governance model Select suppliers based on a sustainability scoring Ensuring equal gender in the bank's top management staff novobanco 52 52#53ESG Our ESG Priorities and 9M22 achievements... GOOD HEALTH AND WELL-BEING Sustainable Business Social & Financial Well-being QUALITY EDUCATION ما GENDER DECENT WORK AND EQUALITY ECONOMIC GROWTH CLIMATE ACTION Responsible Banking 5.8k Hours of ESG training to employees 5.9% Gender pay-gap³ (vs 6.0% in Jun-22) €279.6mn Green investment production1 -13.2% Electricity Consumption (YoY) -100% Of clean electricity consumption; (no CO2) 3.3 K -10.7% Paper consumption (YoY) -19.4% CO2 emission (YoY)² Participations in 5+ program. A program destined to physical health, mental health, well-being, balance of the employees, launched in June 22 25.0% Of women in senior leaders' roles4 €654.1k Incl: donations, partnerships & specific conditions 48.3% Of suppliers with Sustainability scoring Novobanco launches a Sustainability Credit Line: Up to €250mn to support companies in their transition to a more sustainable and low-carbon economy novobanco • ESG Talks Conference launched on September addressing sustainability issues. CO2 emissions resulting from all participants displacement to the conference were off set. ESG Talks Deep Dive's will continue in 4Q22; • novobanco and novobanco dos Açores service accounts associated to social responsibility causes: i) Social - Semear Project (Sow Project); ii) Cultural - Este Espaço Que Habito (This space I Inhabit), and; iii) Environmental (Recreational Toys Recycling Project) were finished. Note: (1) Novo Banco S.A; Includes financing and investment in 8 sectors inherently aligned with EU Taxonomy and in Green Bonds (as labeled by Bloomberg). Does not include remaining Taxonomy eligible sectors or other ESG/Sustainable/Social linked bonds and loans; (2) June 2022 - biannual monitoring (3) Adjusted by function; (4) includes BoD team and senior managers; 53 53#54ESG Novobanco 2024 commitments Group novobanco ESG + 4.5 p.p. women in senior leadership positions 11 + €600mn - 18% GHG emissions (scope 1 e 2)5 €0mn + 50% low emissions vehicles (electric or hybrid) 100% green electricity procurement 15 - 30% novobanco Sustainable Business in Green Investment¹ (vs. 2021) financing to excluded sectors² Social and Financial Well-being 40% employees benefiting from social well-being program6 + 2.5 p.p. Responsible Banking women in senior leadership positions 11 + 3 p.p. employees assessed Healthy (psychosocial assessment 7) (vs. 2021) - 0.9 p.p. gender pay gap 12 30% investment products with ESG characteristics³ + 8 p.p. employees engagement level (vs. 2021) + 3 partnerships with to promote employment of people with disabilities 13 paper consumption4 (ton, vs. 2021) + 11.8 points in customers' NPS⁹ (vs. 2021) 90% suppliers with sustainability scoring 14 -18% CO2 emissions from own operations5 (ton. vs. 2021) + 9,594 hours from employees volunteering service initiatives 10 (vs. 2021) +39,160 hours ESG training to employees novobanco 1. Origination of financing or own portfolio investments in companies whose main economic activity is eligible to the European Taxonomy and origination of financing or own portfolio investments where the use of funds by the borrower or the projects are directed to economic activities eligible to the European Taxonomy or are aimed at investments in energy transition or the transition of the company's business model towards green activities; 2. Economic sectors not financed by novobanco: Weapons, Prostitution, Pornography, Coal (mining and energy production) and Trade in wildlife and endangered species; 3. Investment Funds, Financial Insurance and Structured Products; 4. Reduction of the consumption of photocopy paper, resulting from the implementation of the Phygital program in the commercial network (started in 2019) and the dematerialization of processes in central services; 5. Scope 1 and 2 GHG emissions; 6. Percentage of employees who attended at least 2 program initiatives per year. Programme of initiatives to promote balance between personal and professional life, mental and physical health, healthy living, etc.; 7. Annual psychosocial risk assessment study of novobanco's employee base; 8. Assessment of the level of employee engagement carried through the Pulse survey (average % of employee engagement); 9. Net Promoter Score calculated for Individual Clients - BASEF; 10. Promotion of volunteering actions in strategic areas of social impact of the bank. Each employee can take 1 day leave per year for volunteer work; 11. First line managers and Executive Board of Directors; 12. Gender pay gap weighted by the representativeness of each Performance Function; 13. Number of organisations with active partnerships with the Bank; 14. Suppliers with a continuous relationship with novobanco and annual turnover of over 10 thousand euros; 15. In all locations where the option is available and the contract is held by novobanco. 54#559M22 Financial Statements Income Statement - Quarterly data (€ million) Net Interest Income 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 ▲ €mn YoY ▲ % YoY 145.7 143.5 140.9 143.2 133.5 134.5 137.9 (3.0) (2%) Fees and Commissions 62.8 72.8 72.3 74.6 68.8 75.6 71.3 (1.0) (1%) Commercial Banking Income 208.5 216.3 213.2 217.9 202.3 210.1 209.2 (4.0) (2%) Capital Markets Results 52.8 40.5 (59.7) 42.2 91.4 (5.6) (17.6) +42.1 (70%) Other Operating Results 12.2 (41.3) 30.3 39.2 16.7 56.5 88.0 +57.7 +190% Banking Income 273.5 215.5 183.9 299.3 310.4 261.0 279.6 +95.7 +52% Operating Costs 102.7 101.4 101.6 102.6 103.6 105.1 105.5 +3.9 +4% Staff Costs 58.7 58.9 57.9 57.8 55.7 56.1 57.9 +0.1 +0% General and Administrative Costs 35.9 34.2 35.1 35.8 38.2 39.2 37.7 +2.6 +7% Depreciation 8.1 8.2 8.6 9.0 9.8 9.8 9.9 +1.3 +15% Net Operating Income 170.8 114.1 82.3 196.6 206.8 155.9 174.1 +91.8 +112% Net Impairments and Provisions 61.8 27.4 70.4 193.1 21.8 (2.0) 2.7 (67.7) (96%) Credit 54.9 29.8 30.3 34.4 14.3 5.0 20.2 (10.1) (33%) Securities 0.9 15.1 1.4 30.4 11.1 30.6 2.4 +1.0 +70% Other Assets and Contingencies 6.0 (17.5) 38.7 128.4 (3.6) (37.6) (19.9) (58.6) (151%) Income before Taxes 109.0 86.7 11.9 3.5 185.0 157.9 171.4 +159.5 +1,343% Corporate Income Tax 4.2 16.9 (8.1) (28.2) 7.4 11.6 8.9 +17.0 (210%) Special Tax on Banks 32.8 1.5 0.0 (0.1) 34.1 (0.0) (100%) Income after Taxes 72.0 68.4 20.0 31.8 143.5 146.4 162.5 +142.5 +714% Non-Controlling Interests 1.3 1.4 3.6 1.4 0.9 22.3 0.9 (2.7) (76%) Net Income for the period 70.7 67.0 16.4 30.4 142.7 124.0 161.6 +145.3 +888% novobanco 55#569M22 Financial Statements Balance Sheet (€ thousands) Dec-21 Sep-22 Dec-21 Sep-22 Cash, cash balances at central banks and other demand deposits 5,871,538 1,009,724 Financial liabilities held for trading 306,054 125,235 Financial assets held for trading 377,664 181346 Financial liabilities measured at amortised cost 40,215,994 42,137,669 Financial assets mandatorily at fair value through profit or loss Financial assets at fair value through profit or loss, or through other 799,592 577,879 Due to banks 10,745,155 10,532,385 Due to customers 27,582,093 29,377,009 7,220,996 comprehensive income Financial assets at amortised cost 26,039,902 2,574,653 38,346,080 Debt securities issued and subordinated debt and liabilities associated with transferred assets 1,514,153 1,511,436 Debt securities 2,338,697 8,218,014 Other financial liabilities 374,593 716,839 Derivatives Loans and advances to credit institutions Hedge accounting 19,639 523,410 50,466 Loans and advances to customers 23,650,739 5,543,227 24,584,839 Provisions 442,834 373,717 Tax liabilities 15,297 10,671 Derivatives Hedge accounting 19,639 523,410 Current tax liabilities 12,262 9,826 Fair value changes to the hedged items in portfolio hedge of interest rate risk 30,661 -366,319 Deferred tax liabilities 3,035 845 Other liabilities 443,437 Investments in subsidiaries, joint ventures and associates 94,590 123,922 Tangible assets 864,132 821,389 Liabilities included in disposal groups classified as held for sale Total Liabilities 968 918,454 1,802 Tangible fixed assets 41,469,044 43,580,786 238,945 250,842 Investment properties 625,187 570,547 Capital 6,054,907 6,054,907 Intangible assets Tax assets Current tax assets Deferred tax assets 67,986 779,892 35,653 744,239 71,034 873,165 Other comprehensive income Retained earnings - accumulated -1,045,489 -1,188,216 -8,576,860 -8,577,074 Other assets 2,442,550 36,379 836,786 2,243,173 Other reserves 6,501,374 6,672,719 Non-current assets and disposal groups classified as held for sale 9,373 Total Assets 44,618,515 12,121 46,991,577 Total Equity Profit or loss attributable to parent company shareholders Minority interests (Non-controlling interests) Total Liabilities and Equity 184,504 428,342 31,035 20,113 3,149,471 3,410,791 44,618,515 46,991,577 novobanco 56#579M22 Financial Statements Customer loans €mn Sep-21 Dec-21 Jun-22 Sep-22 YTD Consolidated €mn % Customer Loans (net) Customer Loans (gross) Corporate Residential Mortgage Consumer finance and other 23 423 23 651 24 304 24 585 934 3.9% 24 918 24 899 25 541 25 823 925 3.7% 13 673 13 710 14 268 14 524 814 5.9% 9 847 9 782 9 833 9 918 136 1.4% 1 398 1 406 1 440 1 381 - 25 -1.8% Non-Performing Loans (NPL)* 2 195 1 749 1 695 1 605 - 144 -8.2% Impairment ** 1 495 1 248 1 237 1 238 - 10 -0.8% NPL Ratio* NPL coverage* Cost of Risk (bps) 7.2% 5.7% 5.4% 5.0% -0.7p.p. 81.5% 71.4% 62 60 73.0% 15 77.2% 5.8p.p. 20 - 40 -66.0% Cost of Risk (bps) - Covid Adjusted 40 31 * Includes Deposits and Loans and advances to Banks and Customer Loans ** Includes impairment for Customer Loans and to Banks novobanco 57 52#589M22 Financial Statements Investment portfolio with a duration of ~4.5 yrs Banking Book (by maturity; Sep-22; €mn; %) 19% PT sovereign debt 4% Other sovereign 11% HQLA1 (Corp + Fins) 34% Other EU sovereign 7% Supranational 20% Non-HQLA €11.4bn 3,474 6% 2,921 2,788 2% 5% 6% 3% 8% 6% Inc: Restructuring Funds, Equity Holdings and Commercial Paper 4% 1% 794 8% 714 679 13% 9% 4% 4% 5% 6% 1% ≤ 2 12; 5] 15; 8] 18; 10] > 10 Other 31% 24% 26% 6% 7% 6% novobanco (1) HQLA: High Quality Liquid Assets 58#599M22 Financial Statements Capital ratios 31-Dec-21 31-Dec-21 CAPITAL RATIOS (CRD IV/CRR) (Phased-in) (Fully loaded) 31-Mar-22 31-Mar-22 (Phased-in) (Fully loaded) 30-Jun-22 30-Jun-22 (Phased-in) (Fully loaded) (Phased-in) (Fully loaded) 30-Sep-22* mn€ 30-Sep-22* Risk Weighted Assets (A) 24 929 24 689 23 761 23 622 23 058 22 914 22,848 22,695 Own Funds Common Equity Tier 1 (B) 2 768 2 507 2 571 2419 2 711 2 558 2,906 2,746 Tier 1 (C) 2 769 2 509 2 572 2 420 2 712 2 559 2,908 2,747 Total Own Funds (D) 3 276 3 016 3 076 2 925 3 214 3.061 3,409 3,248 Common Equity Tier 1 Ratio (B/A) 11.1% 10.1% 10.8% 10.2% 11.8% 11.2% 12.7% 12.1% Tier 1 Ratio (C/A) 11.1% 10.1% 10.8% 10.2% 11.8% 11.2% 12.7% 12.1% Solvency Ratio (D/A) 13.1% 12.2% 12.9% 12.4% 13.9% 13.4% 14.9% 14.3% Leverage Ratio 6.0% 5.4% 5.5% 5.2% 5.7% 5.4% 5.9% 5.6% * preliminary novobanco 59 59#609M22 Financial Statements Deferred Tax Assets Overview of Deferred Tax Assets (€ millions) Dec-21 Sep-22 Timing-Difference DTAS - under Special Regime (1) 267 298 Timing-Difference DTAs - other 473 538 Total DTAs on Balance Sheet 741 836 • Tax losses carried forward are recognised to the extent they are expected to be recovered with future taxable income; • novobanco conservatively assesses the recoverability of tax losses carried forward considering its projected taxable income over a 5 year period; . DTAs under Special Regime: YoY decrease reflects the conversion rights relating to 2020 fiscal year. novobanco Deferred Tax Assets as % of Equity¹ novobanco vs listed banks and average by market c.50% as of Jun-17 45% 46% 25% novobanco Bank 1 (1) Novobanco analysis; considering most recent available information; Spanish banks includes Caixabank, Bankinter, Unicaja and Sabadell; Greek banks includes NBG, Eurobank, Alpha Bank and Piraeus Bank Spanish Top domestic Banks (avg) 93% Greek Banks (avg) 60 60#619M22 Financial Statements CCA: €485mn available CCA - Contingent Capital Agreement Compensation amounts (€ million) 4,367 3,890 792 1,149 1,035 429 • 112 317 1 485 165 209 • • Losses in CCA 2018 2019 2020 2021 CCA Assets Maximum (2020) 2021 2022 Remaining divergences call CCA Amount CCA available² (€485mn) CCA received (€3.4bn) As agreed during the sale process of novobanco, a Contingent Capital Agreement ("CCA") was entered into between the Resolution Fund ("FdR") and the Bank. • At the time of the sale, a capital injection backstop was agreed between the Portuguese Government and EU. • novobanco is to be paid up to €3.89bn for losses recognised in a predefined portfolio of assets ("CCA Assets") and other CCA covered losses (the "CCA Losses") in case the capital ratios decrease below a pre-defined threshold. Minimum Capital Condition: CET1 or Tier 1 < CET1 or Tier 1 SREP requirement Plus a buffer for the first 3 years (2017-2019) CET1 < 12% • The mechanism is in place until Dec-25 (the "CCA Maturity Date"), which date can be extended, under certain conditions, by one additional year. novobanco (1) Composed by €147mn related to for the discontinuation (1) Composed by €147mn related to for the discontinuation of Spanish operations and €18mn from Restructuring Funds; In addition to the €165mn divergencies from the CCA call of 2020 accounts, there is also an arbitration regarding the application of transitional arrangements for IFRS 9 dynamic approach; (2) Funds not included in Capital Ratios 61#62Ratings Moodys and DBRS ratings MOODY'S Long Term June 2022 Short Term DBRS April 2022 Long Term Short Term Baseline credit assessment (BCA) Adjusted baseline credit assessment (BCA) b2 50 Intrinsic assessment B (high) b2 50 Counterparty risk rating Ba2 Deposits Counterparty risk Ba2 (cr) NP (cr) assessment Debt Ba3 Deposits NP Positive Outlook B3 Issuer rating NP B (high) Trend Stable R-4 Trend Stable BB (low) Trend Stable R-4 Trend Stable B (high) Trend Stable R-4 Trend Stable Critical obligations rating BB (high) Trend Stable R-3 Trend Stable Senior unsecured debt Positive Outlook B (low) Subordinated debt novobanco B3 Subordinated Debt Trend Stable 62 62#63Glossary Income Statement Fees and commissions Commercial banking income Capital markets results Other operating results Banking income Operating costs Net operating income Provisions and impairments Fees and commissions income less fees and commissions expenses Net interest income and fees and commissions Dividend income, gains or losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, gains or losses on financial assets and liabilities held for trading, gains or losses on financial assets mandatorily at fair value through profit or loss, gains or losses on financial assets and liabilities designated at fair value through profit and loss, gains or losses from hedge accounting and exchange differences Gains or losses on derecognition of non-financial assets, other operating income, other operating expenses, share of the profit or loss of investments in subsidiaries, joint ventures and associates accounted for using the equity method Net interest income, fees and commissions, capital markets result and other results Staff costs, general and administrative expenses and depreciation and amortisation Banking income - operating costs Provisions or reversal of provisions, impairment or reversal of impairment on financial assets not measured at fair value through profit or loss, impairment or reversal of impairment of investment in subsidiaries, joint ventures and associates and impairment or reversal of impairment on non-financial assets Balance Sheet/Liquidity Assets eligible as collateral for rediscount operations with the ECB Securities portfolio Due to customers Banco de Portugal Instruction n. 16/2004 Net ECB funding Total Customer Funds Off-Balance Sheet Funds Loan to deposit ratio Banco de Portugal Instruction n. 16/2004 novobanco The Eurosystem only grants credit against adequate collateral. This collateral consists of tradable financial securities and other types of assets such as nontradable assets and cash. The expression "eligible assets" is used for assets that are accepted as collateral by the Eurosystem. Securities (bonds, shares and other variable-income securities) booked in the trading portfolios at fair value through profit or loss, mandatory at fair value through profit or loss, at fair value through orther comprehensive income and at amortised cost. Amounts booked under the following balance sheet accouting headings: [#400 - #34120 + #52020 + #53100]. Difference between the funding obtained from the European Central Bank (ECB) and the placements with the ECB. Deposits, other customer funds, debt securities placed with clients and off-balance sheet customer funds. Off-balance sheet funds managed by Group companies, including mutual funds, real estate investment funds, pension funds, bancassurance, portfolio management and discretionary management. Ratio of [gross loans - (accumulated provisions / impairment for credit)] to customer deposits. 63 69#64novobanco Glossary Asset Quality and Coverage Ratios Overdue loans ratio Overdue loans > 90 days ratio Overdue loans coverage ratio Overdue loans > 90 days coverage ratio Coverage ratio of customer loans Cost of risk Non-performing loans Non-performing loans ratio Non-performing loans coverage ratio Efficiency and Profitability Ratios Efficiency (Staff costs / Banking income) Banco de Portugal Instruction n. 16/2004 Efficiency (Operating costs / Banking income) Banco de Portugal Instruction n. 16/2004 Profitability Banco de Portugal Instruction n. 16/2004 Return on average net assets Banco de Portugal Instruction n. 16/2004 Return on average equity Banco de Portugal Instruction n. 16/2004 Return on tangible equity (ROTE) Ratio of overdue loans to total credit. Ratio of overdue loans > 90 days to total credit. Ratio of accumulated impairment on customer loans (on balance sheet) to overdue loans. Ratio of accumulated impairment on customer loans (on balance sheet) to overdue loans > 90 days. Ratio of impairment on customer loans (on balance sheet) to gross customer loans. Ratio of credit risk impairment charges accounted in the period to gross customer loans. Total balance of the contracts identified as: (i) in default (internal definition in line with article 178 of Capital Requirement Regulation, i.e., contracts with material overdue above 90 days and contracts identified as unlikely to pay, in accordance with qualitative criteria); and (ii) with specific impairment. Ratio of non-performing loans to the sum of total credit, deposits with banks and Loans and advances to banks Ratio of impairment on customer loans and loans and advances to banks (on balance sheet) to non-performing loans. Ratio of staff costs to banking income (net interest income, securities income, net fees and commissions, capital markets results, income from associated companies and subsidiaries and other operating income and expenses). Ratio of operating costs (staff costs, general and administrative expenses and depreciation and amortisation) to banking income (net interest income, securities income, net fees and commissions, capital markets results, income from associated companies and subsidiaries and other operating income and expenses). Ratio of banking income (net interest income, securities income, net fees and commissions, capital markets results, income from associated companies and subsidiaries and other operating income and expenses) to average net assets. Ratio of income before tax and non-controlling interests to average net assets. Ratio of income before tax and non-controlling interests to average equity. Ratio of return for the period and tangible equity. The return corresponds to the annualized result before tax, less the contribution on the banking sector and contributions to resolution funds, being adjusted for events considered extraordinary. Tangible equity calculated as risk weighted assets x 12%. 49 64#65Glossary Designations & abbreviations YTD YOY ECB QE CRD IV CRR NIM €, EUR €mn €bn €k bps p.p. tCO₂e RWA Year-to-date Year-on-Year European Central Bank Quantitative Easing Capital Requirements Directive 2013 Capital Requirements Regulation Net Interest Margin euro millions of euro billions of euro thousands of euro basis points percentage points tonnes of carbon dioxide equivalent Risk weighted assets novobanco Investor Relations contacts: Maria Fontes, Head of IR Website: www.novobanco.pt/english | Email: [email protected] | Phone: +351 21 883 95 95 Avenida da Liberdade, 195, 9th floor | 1250-142 Lisboa | Portugal 99 65#66novobanco