#1novobanco INVESTOR PRESENTATION 2022 YE RESULTS PRESENTATION March 2023#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 Highlights Financial Results Income Statement Balance Sheet Outlook Final Remarks novobanco 3#4Consistent strategy delivering increased profitability Deliberate strategy execution leading to a net income of €560.8mn (2021: €184.5mn). Strong strategic focus delivering a sustainable growth of business with increased revenues and capital generation, leading to a strong recurrent pre-tax profitability of €406.7mn, equivalent to a ROTE (before tax) of 14.4%. I I I Solid NII growth (+9.1% YoY; +59% QoQ) to €625.5mn, reflecting improvement of average assets yield. In 2022, NIM increased to 1.47% (2021: 1.42%; 4Q22: 1.99%) with Net customer loans at €24.6bn (+3.8% YTD), reflecting an expanding loan book in both retail and corporate segments. Commercial Banking Income grew to €918.8mn (+7.3% YoY) and Banking Income was also strong at €1,126.3mn (+15.9% YoY), with Other operating results of €183.6mn, driven by an accelerated deleverage of the real estate portfolio. Cost to Income² ratio of 44.1% (excluding exceptional items; -2pp YoY). Cost of risk was 45bps (2021: 70bps; 2022: €133.3mn), demonstrating resilient asset quality. Further reduction of NPL ratio to 4.3% (Dec/21: 5.7%), increased coverage ratio to 76.7% (Dec/21: 71.4%), reflecting the de-risking strategy and progress towards achieving an NPL ratio in line with EU average. Accelerating capital generation with CET 1 increasing 300bps to 13.1% (fully-loaded basis; 13.7% phased-in) and Total capital ratio reached 15.5% (+330bps YTD). A capital accretive business model, which is set to produce strong capital generation, and RWA discipline, ensured a buffer above the target. 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; 4#5Business plan agreed with DG Comp delivered and restructuring period concluded • • • • Restructure 2017-2020 Sale of Novo Banco to Lone Star Deep operational and balance sheet restructuring Exit from all international operations, with refocusing on financing Portuguese corporates and households Completion of balance sheet clean-up as at Dec-20 - subsequent disposals of non-core assets being capital accretive . Renovation & Transformation 2021-2022 Return to profitability (8 consecutive quarters of profits) Returning to normalised cost of risk <50 bps Strengthening capital position. Fully loaded CET1 up to 13.1% from 10.1% in 2021 Net Interest Income (Єmn) • Relaunch 4Q22 and beyond Significant top-line growth in 4Q22 (increasing NII by 59% QoQ) with further expansion of NIM to above 2.2% for 2023E Delivering attractive levels of profitability: > €600mn recurrent PBT in 2023E Net Interest Income and Margin (Єmn, %) • • 143 220 134 135 138 +59% QoQ 1.5% >2.2% 2017 2022 %A NPL ratio 30.5% 4.3% -26p.p 2021 average 2022 1Q 2022 2Q 2022 3Q 2022 4Q 2022 2023E REOs €2.5bn €0.6bn -75% Profit Before Tax (post Special Tax on Banks; €mn) Reported Underlying profitability(1) Branches 473 292 -38% Profit Before Tax (post Special Tax on Banks; €mn) >600 561 107 139 75 85 44 FTE 5,488 4,090 -25% +30% QoQ1 407 2021 average 2022 1Q 2022 2Q 2022 3Q 2022 4Q 2022 2023E novobanco (1) Underlying profitability is adjusted for one-off opex (including intangibles write-down), real estate tax provision, real estate gains, non-recurrent market results, and pro-rata allocation of special tax on banks and contributions to the Resolution Funds 5#6A domestic player in a market with 2022 GDP growth >6.5%, with resilient private consumption, strong recovery in tourism and rise in net exports Annual GDP growth 1 (%) Average Inflation1 (%) Unemployment rate (% labour force) Employment (RHS) 8.4 7.8 20 5,100 6.7 6.3 5.8 15 4,800 3.5 10 Unemployment rate 4,500 6.7% (LHS) 4,200 1.5 0.5 5 3,900 0 3,600 EU PT EU PT EU PT EU PT 2000 2003 2006 2009 2012 2015 2018 2021 2022 2023E 2022 2023E INE house price index and transactions (% YoY; # thousands) Industrial production and services turnover (% YoY; 3m MA) # Transactions 40 15 (RHS) 13.2 50 Prices % YoY 10 40 (LHS) 5 43.6 0 -5 ON WAT 30 20 Services Turnover 22.0 10 30 0 0.1 20 -10 -20 10 Industrial Production -30 -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 (1) Source: Portugal - INE and Bank of Portugal (Dec/22); European average - ECB (Dec/22) 6#7A four-pillar strategy to maximize value for customers, maintaining profitable operations, capital efficiency... Customer-centric bank Market share as 1st Bank (%¹) Active Digital Clients (%) 8.2% 57.6% 61.9% 7.6% +0.6pp +74% #digital sales2 Simple and efficient operations Loans per FTE (Єmillion) 5.9 Developing people and culture Delivering sustainable performance Green Investments (€million) 6.3 342.7 128.8 2021 Commercial Banking Income/ FTE (€thousand) 225 204 +5% +10% L ESG Training Hours (thousands; cumulative) 70.6 58.6 +166% +20% 2021 2022 2022 novobanco (1) Source: BASEF; novobanco analysis; (2) digital sales in units, excludes deposits and investment products €1.1bn EIB/EIF Loans Origination in 2022 TRADE FINAM BEST CE PROVIDER 2022 GLOBAL THE DIGITAL BANKER Best Trade Finance Provider for 5 consecutive years Digital CX WINNER OUTSTANDING DIGITAL CX- BANCASSURANCE Awards N Banking Tech Awards: NOVOBANCO & GAMALIFE Best Mobile Initiative - App Outstanding Digital CX: Bancassurance Best Performer Digital (D-Rating): Retail Banking 7 7#8... reaching RoTE of 14.4%, a further confirmation of the sustainability of novobanco trajectory From Profit Before Tax to Recurrent Profitability (2022; €mn) Recurrent Profitability (Єmn; pre-tax) +168% YOY 14.4% ROTE¹ 14.4% 12.4% 11.0% 566.8 (34.1) 10.2% (18.9) (77.1) 8.7% 8.8% 8.2% 139.4 (67.0) +42.7 (5.6) 406.7 7.6% ======== 107.1 85.1 77.9 76.5 75.1 68.6 59.7 Income Before Tax Special Tax on Banks Market Results² Gain from the sale of: Non-recurring Provisions³ Recurrent Operating (Other net Profitability costs contingencies) (pre-tax) RE portfolio (Logistics) Head Office novobanco 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 ROTE (YTD annualised; 12% RWA) (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; (3) Includes a provision for the taxation of real-estate of €57mn 8#9Consistent performance having delivered on medium-term targets already in 2022, positioning novobanco for its next stage of development Customer-centric bank Simple and efficient operations As announced in Oct/21: Previous Medium-term Targets 2022 Execution Commercial Loan Book (performing) 2-3% per year 4.7% YoY Expanding loan book Net Interest Margin [1.30 -1.50%] 1.47% Cost-to-income < 45% 44% (recurrent basis) COR < 50 bps 45 bps Set to benefit from Euribor repricing Efficient operations Achieving moderate risk profile Developing people and culture NPL ratio < 5% 4.3% Converging towards EU average ROTE (pre-tax)1 ≥ 10% 14.4% Delivering organic attractive returns Delivering sustainable performance CET 1 > 12% 13.7% Accelerating capital generation novobanco Achievements of novobanco were also recognized with the successful conclusion of the DG Comp restructuring period as of 22YE² (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) The Monitoring Trustee's final report will be prepared upon the release of novobanco 2022 year-end accounts. 9#10AGENDA Highlights Financial Results Income Statement Balance Sheet Outlook Final Remarks novobanco 10 10#11Significant YoY improvement in profitability... Income Statement (€mn) ΔΥΟΥ 2021 2022 €mn 1 Net Interest Income 573.4 625.5 +52.1 + Fees & Commissions 282.5 293.3 +10.8 2 . = Commercial Banking Income 855.9 918.8 +62.9 + Capital Markets Results 75.9 24.0 (51.9) + Other Operating Results 40.4 183.6 +143.2 = Banking Income 972.2 1 126.3 +154.2 3 Operating Costs 408.4 448.4 +40.0 = Net Operating Income 563.8 678.0 +114.2 4 - Net Impairments & Provisions 352.7 111.2 (241.5) = Profit Before Tax 211.1 566.8 +355.7 • = Recurrent PBT 282.7 406.7 +124.0 - Corporate Income Tax -15.2 - 53.3 (38.1) Special Tax on Banks 34.1 34.1 0.0 = Profit after Taxes 192.2 585.9 +393.8 - Non-Controlling Interests 7.7 25.1 = Net Profit for the period 184.5 560.8 +17.4 +376.3 . novobanco (1) Considering loans and corporate bonds • . • NII +9.1% with improvement of average assets yield, more than offsetting the cost of new senior debt and TLTRO III phase-out. Annual NIM of 1.47%, reaching 1.99% in the 4Q22; Fee income +3.8% highlighting accounts and payments fees performance backed by pick-up in business activity; Capital Markets Results positive by €24.0mn mostly due to gains from the hedging of interest rate risk. The fair value reserves decreased by €267mn; Other operating results includes €77.1mn gain from the sale of logistics assets in 2Q22 (€58.5mn net of non-controlling interests), €71.5mn gain of on the sale of headquarters building in 3Q22 (€67.0mn net of contingencies) and €40.4mn gain on overdue loans recovery. These effects more than offset contributions to resolution funds (€40.9mn); Operating costs totalled €448.4mn reflecting the continued investment in digital transformation and streamlined operations, growing 2.4% YoY on a recurring basis (to €405.6mn); Lower provisions reflecting the quality of the portfolio after the execution of the restructuring process (Cost of Risk at 0.45%¹); Net Income of +€560.8mn (+204% YoY) reflecting a sustainable growth of business, with the ability to grow revenue and generate capital. 11#12...backed by a positive NIM trend, with higher Euribor, more than offsetting funding costs and TLTRO III phase-out Income Statement (€mn) ▲QOQ 1Q22 2Q22 3Q22 4Q22 Net Interest Income + Fees & Commissions = Commercial Banking Income + Capital Markets Results + Other Operating Results = Banking Income - Operating Costs = Net Operating Income - Net Impairments & Provisions 21.8 = Profit Before Tax 185.0 -2.0 157.9 €mn 133.5 134.5 137.9 219.5 +81.6 68.8 75.6 71.3 77.6 +6.3 202.3 210.1 209.2 297.2 +87.9 91.4 -5.6 -17.6 - 44.2 (26.6) 16.7 56.5 88.0 22.3 (65.7) 310.4 261.0 279.6 275.3 (4.3) 103.6 105.1 105.5 134.1 +28.6 206.8 155.9 174.1 141.1 (32.9) 2.7 88.7 +86.0 171.4 Net Interest Margin: Quarterly trend (€mn) 2.46% Assets 2.30% 1.67% 1.61% 1.53% 1.56% 1.49% 1.51% 1.65% EUR6M 1.99% NIM 1.27% 1.49% 1.44% 1.37% 1.39% 0.19% 0.18% 0.17% 0.17% 1.31% 1.29% 0.23% 0.18% 0.97% 0.40% 0.50% Liabilities -0.09% -0.52% -0.47% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 52.4 (118.9) = Recurrent PBT 75.1 85.1 - Corporate Income Tax 7.4 11.6 107.1 8.9 139.4 +32.3 Net Interest Income: Quarterly trend (Єmn) +59% QoQ1 - Special Tax on Banks 34.1 - 81.1 (90.0) 0.0 219.5 145.7 143.5 140.9 143.2 133.5 134.5 137.9 = Profit after Taxes 143.5 - Non-Controlling Interests 0.9 = Net Profit for the period 142.7 146.4 162.5 22.3 0.9 124.0 161.6 133.6 (28.9) 1.1 +0.2 132.5 (29.1) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 12 novobanco (1) Equivalent to +46% QoQ if adjusted for amended of TLTRO III terms on 27 Oct (imply +€7.5mn in 3Q22)#131 Loan book expansion and increasing asset yields, reaching NII of €626mn despite the amended TLTRO III terms and higher senior debt cost Net Interest Income (NII) 2021 2022 4Q22 Net Interest Margin (NIM) Avg. Income/ Rate Costs Costs Avg. Income/ Avg. Income/ Rate Rate Costs +9.1% € million; % Customer Loans 2.01% 510 2.31% 595 2.97% Corporate loans 2.33% 324 2.60% 373 3.27% 197 121 +23.1 625.5 +88.4 573.4 Mortgage lending 1.04% 104 1.36% 136 2.07% 53 Consumer loans and Others 5.86% 82 5.96% 86 6.36% 23 (35.3) (24.1) Money Market Placements 0.07% 3 0.20% 13 1.32% 22 Securities and Other Assets 1.28% 133 1.48% 153 1.80% 50 Interest Earning Assets & Other 1.60% 645 1.79% 761 2.46% 269 Customer Deposits 0.19% 51 0.17% 48 0.22% 16 Money Market Funding -0.51% - 54 -0.09% -10 0.47% 8 Other Liabilities 6.53% 71 6.30% 93 6.15% 23 2021 Interest Bearing Liabilities & Other 0.17% 68 0.31% 131 0.50% 48 TLTRO III (liability) 2021 Commercial Issuance activity Other (eg: Securities) 2022 NIM / NII¹ 1.42% 573 1.47% 625 1.99% 220 novobanco (1) With stage 3 impairment adjustment; || 13#14Fees grew 3.8% YoY, driven by economic recovery and increased 2 transactionality Fees: Quarterly Evolution (Єmn) Fees: evolution per type (€mn) +3.8% 293.3 282.5 2021 62.8 1Q +9.6% 2022 68.8 Advising, Servicing & Other 14.8 13.5 66.1 -2.8% 2021 72.8 2Q +3.9% Asset Management & Bancassurance 68.0 2022 75.6 2021 72.3 On Loans, Guarantees & similar 86.6 +1.3% 85.5 3Q -1.4% 2022 71.3 2021 74.6 Accounts and payments 114.2 127.2 +11.3% 4Q +4.0% 2022 77.6 2021 2022 . • Asset management & bancassurance fees (€1.9mn; -2.8% YoY): from lower management fees due to market conditions during 2022. • Commissions on Loans, Guarantees and similar (+€1.1mn; +1.3% YoY): on stable volume of guarantees and loans. • Accounts and Payments (+€12.9mn; +11.3%) due to a higher volume of transactions and new pricing implemented in 1Q22 for customer accounts. novobanco Higher volume of transactions and new business are expected to drive fee income expansion. 14#153 Operating costs growing at 2.4% on recurring basis, implying 44% cost to income ratio Operating Costs (%; €mn) ▲ YOY 2022 One-Offs Costs (Єmn) +9.8% +2.4%¹ 408.4 448.4 52.5 Other 405.5 Spain branch closure Intangibles write-offs D&A 3 34.0 4 Employees per area -103 4,193 4,139 4,090 Other areas 1,884 1,880 1,872 Commercial 2,309 2,259 2,218 Units Dec-21 Sep-22 Dec-22 G&A 141.1 162.2 DG Comp, 18 CCA & 5 Regulatory €43mn One-Offs Staff 233.3 233.7 Number of branches -19 Cost 13 International 311 2021 2022 Reported 2022 Recurrent 300 292 1 1 Headquarters Domestic 310 299 291 Cost to Income² 48% 49% 44% move & Strategic advisory Dec-21 Sep-22 Dec-22 novobanco (1) YoY considers 2021 one-off costs of €12.4mn; 2021 Recurrent Cost to Income of 46%; (2) Defined as Operating Cost divided by Commercial Banking Income; Commercial Banking Income being equal to Net Interest Margin plus Fees and Commissions 15#164 Provisions below run-rate reflecting a benign economic environment in 2022 Cost of Risk Securities Other Including loans and corporate bonds (bps) Impairment and Provisions (Єmn; %) Loan Provisions 352.7 Includes: €116mn of Real Other 155.6 Estate tax introduced Securities 47.8 Loan Provisions by the 2021 State Budget Law Includes: . Reversal of specific provisions related with contingencies and potential claims €57mn of Real Estate tax (State Budget Law) Covid-19 Impairment/ related sectors Includes: • €40mn additional 111.2 9.0 • 149.4 impairment within Includes: the scope of Covid-19 67.6 • Provisions for a specific corporate exposure; 2021 34.5 2022 • Provision for Russian Federation corporate exposure¹ (€4mn) novobanco 70 70 25 25 44 2021 45 2022 (1) As of Dec-22 total exposure to corporates from Russian Federation was €4.8mn recorded at fair value through other comprehensive income; no Russian Federation sovereign exposure. 16#17AGENDA Highlights Financial Results Income Statement Balance Sheet Outlook Final Remarks novobanco 17#18Maintaining a solid Balance Sheet Balance Sheet (Єmn) ΑΥΤΟ Assets Dec-21 Dec-22 €mn % Loans and advances to banks 5,922 6,643 721 12.2% 1 Customer loans (net) 23,651 24,551 900 3.8% 2 Real estate 824 614 (210) -25.5% 3 Securities 10,471 10,864 394 3.8% Non-current assets held for sale 9 60 50 Current and deferred tax assets 780 956 176 Other assets 2,962 2,308 (654) 22.6% -22.1% Total Assets 44,619 45,995 1,377 3.1% YTD Liabilities & Equity Dec-21 Dec-22 €mn % 4 Customer deposits 27,315 28,412 1,097 4.0% Due to central banks and banks 10,745 9,705 (1,040) -9.7% Debt securities 1,470 1,584 115 7.8% Non-current liabilities held for sale 1 15 15 Other liabilities 1,938 2,766 828 42.7% Total Liabilities 41,469 5 Equity 3,149 Total Liabilities and Equity 44,619 42,483 3,512 45,995 1,014 2.4% 362 11.5% 1,377 3.1% 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 €0.4bn YTD, building up liquidity given the repayment of TLTRO III Liabilities • Customer Deposits growing €1.1bn (+4.0% YTD), with the outperformance of the Retail segment; • Other Liabilities change (+€0.8bn YTD) mostly due to transactions pending settlement and derivatives margin and clearing accounts Capital & Liquidity • FL CET 1 ratio of 13.1%, +300bps capital generation YoY, driven by organic profitability and acceleration of balance sheet deleverage (disposal of high density RWA); Comfortable liquidity position with LCR at 210% and NSFR at 113%. • 18#191 Moving towards expanding loan book with €3.9bn customer loans originated in 2022 Loans to Customers - Gross Book Value Evolution (€bn; %) Net 23.7 +3.8% 24.6 Loans Gross Loans 24.9 +0.6 25.6 +3.9 (2.0) Consumer & (1.8) Other Mortgage 9.8 Corporate 13.7 Loans to Customers: Origination (€bn; %) Corporate Mortgage Consumer & Other 3.0 3.9 1.0 1.0 1.0 1.0 8% 0.9 11% 9% 10% 0.8 10% 26% 9% 0.6 28% 32% 30% 10.0 0.6 36% 22% 8% 5% 10.5% 23% 20% 68% 14.2 Market Share2 61% 58% 63% 48% 45% 33% 34% Dec-21 Stock 2022 Origination Scheduled Non-scheduled Other Effects1 Dec-22 Stock Amortisation novobanco 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 (1) Includes restructured contracts, short-term and impairment variations and other novobanco group entities; (2) Stock figure as of November 2022; sources: Banco de Portugal, APS, APFIPP 19#201 Net loan book growing by 3.8% YTD to €24.6bn (+€0.9bn YTD), driven by Corporate loans (+€0.7bn YTD) Corporate loans (%; €bn) Net 12.70 Loans +5.3% Corporate loan book by Rate Type (Dec-22; %) Corporate loan book by Sector (Dec-22; %) Industry 13.37 Strategic Sectors Fixed Rate Eur 1M 55% Retail & services 12% 17% 11% 29% +2.27 13.71 14.24 +0.80 Gross Loans (2.54) Eur 12M 9% €14.2bn Gross loan book 23% Eur 6M Dec-21 2022 Amortization Other Stock Origination effects Dec-22 Stock Avg. 2.33% 2.60% Rate¹ 24% Eur 3M Real €14.2bn 10% Estate Other² Gross loan book 45% 8% Tourism 7% 6% Agriculture Logistics & transport SME representing > 57% of origination and Small business > 21% 90% of the Corporate book is floating (incl. hedges), majority with Euribor 0% floor Sectorial approach, based on sectors' outlook, expected growth and underlying intrinsic potential novobanco (1) Average rate of the period: (2) Other/ Non strategics sectors includes Construction, Investment funds and holdings, professional services, Public administration & institutions, Auto & electronics, Energy, Health, Insurance, Water and others 20 20#211 Net Loans Mortgage loans representing 33% of YTD origination, with average LTV1 lower than 65% in the period Mortgage loans (%; €bn) Mortgage loan book by Rate Type (Dec-22; %) Mortgage loan book by LTV bucket (Dec-22; %) 9.73 +2.0% 9.92 < Eur 1M Fixed Rate 6% 4% Eur 3M 17% 94% Floating Rates +1.26 Gross Loans 9.78 9.98 Eur 12M 46% (of which ~50% hedged³) (1.01) (0.07) 27% Eur 6M Dec-21 2022 Stock Origination Amortization Other effects Dec-22 Stock Increase reflects >80% 5% 15% [70%; 80%[ €10.0bn Gross loan book 33% [50%; 70%[ Avg. Rate² 1.04% repricing of reference rates (Euribor) 1.36% A conservative mortgage portfolio with average LTV < 50% novobanco (1) December YTD data; (2) Average rate of the period; (3) At average base rate of 2.7% <50% 47% 21#221 Declining YTD NPL stock, benefiting from successful recovery of moratorial clients and contained macroeconomic impacts Non-performing Loans Evolution (%; Єmn; Gross NPL¹) NPL ratio & Coverage evolution1 (%; Consolidated reported figures) NPL ratio NPL coverage 74% 71% 77% -21% 57% 12.0% 1,749 +232 (370) 8.9% (56) (200) +22 1,376 5.7% 4.3% -€138mn Net formation 2019 2020 2021 2022 New Entries NPL (Єmn) 388 365 332 232 Dec-21 New Entries Cures & Sales Write-offs Recoveries (Gross) Forecl. & Other Dec-22 % performing loans² 1.7% 1.6% 1.5% 1.0% YTD Net formation of NPL at -€138mn 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 22 22#231 Lower 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 ~47% of stage 3 loans Impairment RE Collateral Backstop GBV Stage 3 are under the CCA; with Stage 2 7% 18% 7% 5% no full servicing rights 16% 15% Stage 1 75% 77% 80% Corporate 51% 55% 4% 110% €1.2bn Mortgage 29% 97% 125% €0.1bn Dec-21 Jun-22 Dec-22 Coverage ratios² Consumer 79% 15% 95% €0.1bn Stage 2 7.3% Stage 3 7.4% 7.8% 52.1% 53.5% 55.1% Stage 3 at €1.4bn GBV (€0.7bn NBV), with 55% coverage by specific impairments and backstop novobanco (1) Excludes credit institutions; Preliminary figures; (2) Stage 2 Specific provisions; Stage 3 includes backstop 23 23#241 ~73% of Stage 3 with overdue lower than 1 year and recent sales showing that exposures are provisioned in line with market value Total Stage 3 Loans (Dec-22 Pro-forma1; %) 53% Non- CCA 28% Granular Granular (Dec-22 Pro-forma¹; %) Recent granular portfolio sales Price as % NBV Overdue Vintage (years) Secured > 2 > 2 [1; 2[ Not Overdue 5% 12% Not Overdue 100% 20% [1;2[ 15% 7% 32% Secured Unsecured Unsecured 27% 73% 72% Harvey 47% Single CCA CCA Names 9% 36% GBV NBV % Coverage 55% Ratio² 60% 49% <1 < 1 Harvey portfolio was signed in 2022 at premium to book value, reinforcing that Stage 3 exposures are provisioned in accordance with market 55% Non-CCA expectations. 106% Portfolio 1 Portfolio 2 135% Portfolio 3 Signed perimeters which included NPLs with older vintages, show that Stage 3 exposures are provisioned in line with market value Single Names (Dec-22 Pro-forma¹; %) Overdue Vintage (years) > 2 [1; 2[ 9% <1 14% Non-CCA Not Overdue 76% novobanco (1) Analysis excludes a granular portfolio under a SPA; (2) Specific impairments and backstop; > 2 27% CCA 36% Not Overdue 12% 25% < 1 [1; 2[ 24 24#252 Decreasing RE exposure to €614mn (-25%; backed by portfolio sales), with TOP 20 assets representing 66% of the portfolio Evolution of Real Estate Exposure (€mn NBV) % Total Assets RE: Coverage by Asset Type (Dec-22 Pro-forma; €bn;%) 1.8% 2.0% 1.3% Coverage 48% Ratio (%) 56% 44% 22% -25% GBV 0.67 RE: breakdown (Єmillion;%) Historical yield of maintained portfolio: 2020: 5.1% 2021: 5.9% 2022: 7.3% 614 -60 Historical sale premiums (vs NBV): ~110 ~250 2020: 27% 2021: 21% 2022: 32% Top 5 high quality assets represent I more than 90% of this bucket (see annex) ~50 ~140 909 Foreclosed 824 REO (net) 168 170 614 Impairment 0.37 0.42 108 Investment 0.18 properties 654 741 & Other 506 0.10 NBV 0.30 0.24 0.08 Dec-21 Jun-22 Dec-22 Land Commercial Residential & Other Dec-22 Under CRE SPA High novobanco Coverage is supported by a robust appraisal policy, individual asset reviews, market pricing (bids received) and yield performance. Other Granular quality single portfolio plots names 25 25#26Conservative €10.9bn securities portfolio with HQLA1 3 representing ~73% Securities Portfolio: Breakdown Securities Portfolio: Ratings4 (€bn) (€bn) Banking Book (excludes trading book; €bn; %) 3% 1% 0% Other 4 2% 1% 3% [B+; B-] 10.4 10.2 10.8 10.9 10.5 Other² 10.3 0.4 12% 13% 13% [BB+; BB-] 23% 0.8 0.7 Amortised Cost 21% [BBB+; BBB-] 4.1 8% Bonds³ 3.4 36% 4.1 44% 68% 76% Other 27% [A+; A-] Sovereign 3.2 21% debt 3.4 70% 5.4 23% 23% 6% FVTP&L PT [AA+; AA-] 3% 18% Sovereign 3.1 debt 8% 26% 2.2 22% 15% 1.0 7% 9% AAA Dec-21 Jun-22 Dec-22 Dec-21 Jun-22 Dec-22 Dec-21 Jun-22 Dec-22 • FVTOCI 1.5yrs duration (vs Dec-21: 4.1yrs) €0.3mn sensitivity for 1bps increase in interest rates (before hedges; Dec-21: €2.8mn); Securities portfolio increasing by €0.4bn YoY in advance of further TLTRO III facility repayments. Portfolio with an average yield of 2.0%, of which -35% floating (after hedges), and -4.7 duration. 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 26#273 Conservative risk management with limited unrealized losses in the amortised cost securities portfolio... Amortized Cost Portfolio (13 March 2023; €bn; %) Client business 2.5 related 29% Sovereign debt & Supernationals Conservative risk Liquidation of securities portfolio at Amortised Cost management translates in a very limited net unrealised MtM loss in the AC book with 40% of ALCO portfolio hedged P&L impact Net Book Value Market Value Unrealised Mark to Market Fair Value Hedging Derivatives MtM P&L impact (profit after tax) (13 March 2023) €mn 8,468 7,975 (493) 199 (201) €8.5bn 0.9 11% 5.1 60% Capital impact 1 Corporate HQLA Full liquidation of the book would result in c.24bps CET1 ratio phased-in impact. CET 1 ratio phased-in as of Dec-22 CET 1 ratio phased-in pro-forma liquidation 13.7% 13.5% Impact on CET 1 ratio (bps) (24) ...and very granular and stable deposits base (c.73% retail clients of which c.72% customers prior to 2014 resolution). novobanco Note: novobanco analysis with reference to 13-March-2023; (1) using preliminary figures on Dec-22 pro-forma basis, assumes 31.5% statutory tax rate; 27#284 Customer deposits +4.0% YoY and Total Funds +3.1%... Customer Deposits & Total Funds (%; €bn) Deposits Breakdown by Customer (€bn; %) +3.1% YOY Deposits Breakdown by Type (€bn; %) +4.0% YOY 0.19% 0.15% 0.17% Cost of Deposits 33.8 34.6 34.8 Other Funds1 27.3 28.4 28.4 27.3 28.4 28.4 6.2 6.4 6.4 28% 27% 28% Non-Retail Term 31% 33% 33% <10% beta in 4Q22 Deposits 27.3 28.4 28.4 Retail 72% 72% 73% Demand 67% 69% 67% Dec-21 Jun-22 Dec-22 Dec-21 Jun-22 Dec-22 Dec-21 Jun-22 Dec-22 ...with evolution reflecting growth of the volume despite limited interest rates pass-through novobanco (1) Includes off-balance 28#29Stable deposit base supporting strong liquidity position 4 Loan to Deposit Ratio¹ (%) Liquidity Ratios (%) LCR2 NSFR 86.0% +1.1pp 83.3% (3.9pp) Eligible Assets at the ECB³ (€bn) €16.5bn €16.5bn €16.9bn 117% 113% 106% Net ECB Funding (€bn) €2.7bn €2.2bn €0.4bn 8.0 8.0 6.3 Gross Funding 210% 182% 187% -5.3 Cash at -5.8 -5.9 ECB Dec-21 Jun-22 Dec-22 Dec-21 Funding Loans Dec-22 Dec-21 Jun-22 Dec-22 LTRO III reimbursements: • 2023: €5.4bn Dec-24: €1.0bn Liquidity buffer ~€13.7bn, 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 29 29#301% (1%) 143% 82% 83% 83% 90% 91% 96% 96% 108% 112% 58% 61% 0 £ 1 0 EU average 4 Portugal is favourably positioned in terms of liquidity of the market vs other EU countries resulting in one of the lowest deposit beta in the EU Loan to deposit ratio: PT vs. EU peers (2022) Portugal has one of the lowest L/D ratios in EU Loan to deposit ratio: novobanco vs portuguese peers (2022) Limited competition for liquidity driven also by CGD (market leader / price setter) having significant excess liquidity 2% (0%) 3% 3% %L 2% 3% 2% 4% 3% 4% %8 4% 2% %9 4% 4% 9% 4% 5% Customer deposits YoY growth (Jan-23) Despite increasing interest rates, deposits growth in Portugal remains robust Corporate deposits Retail deposits Total deposits Blended deposit beta (Jan-23)(1) As a result, Portuguse banking market is expected to demonstrate lower deposit beta vs. other EU market, which has been the case as of Jan-23 Corporate deposits Retail deposits Total deposits %9 5% 5% %L 5% %6 30% 25% 21% 96% 96% 76% 86% 86% 96% 83% 61% 59% CGD BCP Santander Totta 24% 16% 13% 9% 9% BPI novobanco Credito Agricola 6% Montepio PT average EU average 4% Deposits market share (5%) novobanco EU 00 average EU average @00 Source: Company information, Research analysis, ECB, Associação Portuguesa de Bancos; (1) Calculated as the change in the blended deposit cost for Retail and Corporate (across overnight / redeemable / term) over 200bps, i.e. the change in ECB rates from Jul-22 to Jan-23 26% 18% 20% 32% 13% 19% 28% 11% 18% 23% 10% 14% 18% 11% 13% 26% %L 11% 18% 6% 9% 16% 1% %9 11% 3% 10% 2% 4% 7% 2% 30 30#315 Capital increasing by 110bps in the quarter (+290bps YTD), driven by capital-accretive business model... Total Capital: Ratio Evolution (phased-in¹; bps) 12.2% Fully Loaded 13.1% -0.34% Total Capital Dec-21 +0.20% +0.30% +0.61% +0.52% 14.9% +0.36% +0.28% +0.96% Including lower RWA driven by improving PDs following exit of loans from moratoriums in 2021 15.5% Fully Loaded 16.0% >15% IFRS 9 9M Results² Sale of logistics REO Sale of HQ building & Other effects Total Capital Sep-22 4Q Underlying profitability2 Restructuring Funds Other effects³ Total Capital Target Dec-22 REO ...which, combined with the execution of a de-risking strategy, ensured a buffer above the target and is set to produce strong capital generation. novobanco (1) Phased-in ratios; The inclusion of positive results depends on an authorization from the ECB; (2) Excludes Markets Results, which is classified in Other effects; (3) Includes RWA optimization 31#325 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; %) MREL ratio (% RWA; Preliminary) Jan-22 Jan-26 TREA¹ 15.14% 23.16% Combined Buffer 2.52% n.a.2 Total LRE³ 20.8% 17.7% 0.8% Other senior liabilities ≥ 1 year 4.1% Senior Bonds ≥ 1 year 2.3% Own Funds - Tier 2 17.66% 23.16% + CBR Jan-22 Binding Dec-22 5.91% 5.91% 5.91% 9.24% 13.7% Own Funds - Tier 1 ■ Organic capital generation and balance sheet optimisation expected to satisfy MREL (interim) needs in 2023. New market issuance subject to novobanco's improved credit quality being reflected in tighter credit spreads and/or in context of optimising capital structure. 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 32#33AGENDA Highlights Financial Results Income Statement Balance Sheet Outlook Final Remarks novobanco 33#34New rates environment supporting further growth in NIM ECB Deposit Facility (%) Net Interest Margin (%) 2.50 2.70 2.00 New rates environment to 1.50 0.75 support NIM (0.50) expansion 1.5 2.0 >2.2 Jun-22 Jul-22 Sep-22 Oct-22 Dec-22 Feb-23 Avg. 2023 Targets assumption FY 2022 Q4 2022 2023 Target Net floating assets of ~€18.5bn (1) €27.6bn Sticky deposit base with 67% sight deposits (€bn) Bank maintains positive momentum to further improve NII Highly rates sensitive balance sheet (2) €18.5bn €9.1bn Floating assets Floating liabilities (excluding deposits) Net floating assets o.w. €6.0bn cash and €21.6bn floating loans and securities post hedges (Euribor: 21% 1M, 18% 3M, 34% 6M, 27% 12M) novobanco Term Deposits 9.4 33% €28.4bn 19.1 67% Demand Deposits Note: Based on management data on a 31 December 2022 static balance sheet; (1) Floating rate assets include assets which are expected to reprice in the next 12 months, net of hedges; (2) Floating rate liabilities include liabilities which are expected to reprice in the next 12 months, excluding customer deposits 34#352023 outlook set to deliver the next stage of novobanco's development, competing as a strong and independent domestic bank Guidance update supported by: NET INTEREST MARGIN -> 2023 guidance¹ > 2.20% Assuming 2.7% DFR; 20-30% deposits beta IDE SOUND COMMERCIAL ACTIVITY backed by improved customer experience, including implementation of an omnichannel structure on the retail side, a sectorial approach for corporates, enhanced clients' journey and improved know your customer tools and time-to-market COST-TO-INCOME COR (bps) LOAN BOOK REPRICING at current interest rate scenario STRICT COST CONTROL with impact from inflation mitigated by continued implementation of efficiency € measures DE-RISKING STRATEGY with strong coverage levels NPL RATIO RECURRENT PBT CAPITAL GENERATION CET1 FUNDING ↑ ↑ ↑ ↑ ↑ ↑ < 40% ~ 50 bp < 4.5% > €600mm > 2.5% of RWAS (FL basis) Medium-term target of c. 12% Implying €2.6bn CET 1 capital in 2023E Organic capital generation and balance sheet optimisation expected to satisfy MREL capital needs in 2023. New market issuance subject to novobanco's improved credit quality being reflected in tighter credit spreads and/or in context of optimising capital structure. novobanco (1) Guidance and expectations are based on the assumption that there is no severe deterioration of the economic environment 35#36novobanco 2022 performance and 2023 targets translating into a clear positive ratings trajectory CET1 FL ratio 13.1% 12.8% > 2.5% of RWAS capital generation 13.4% 13.5% 13.7% 12.6% 12.3% 2019 12.7% 2022 novobanco 2023E B BB/Ba BBB/Baa 2019 2022 1H22 peer average¹ novobanco Asset quality CET 1 phased-in ratio Profitability² >1.4% 1.2% 7.7% 5.9% 4.3% <4.5% 2019 2022 2023E 3.3% 2019 2022 novobanco 2023E novobanco B BB/Ba BBB/Baa 1H22 peer average1 14.4% 13.1% B BB/Ba 1H22 peer average¹ 12.4% BBB/Baa 0.6% 0.4% 0.2% B BB/Ba BBB/Baa 0.9% considering 2022 underlying profitability of (2.2%) €406.7mn novobanco 1H22 peer average¹ (1) Source: novobanco analysis, Banks considered for the analysis include European peers. Rating refers to Senior Preferred; (2) Profitability calculated as attributable net income divided by tangible assets; tangible assets defined as total assets deducted by goodwill and other intangibles; 36 36#37AGENDA Highlights Financial Results Income Statement Balance Sheet Outlook Final Remarks novobanco 37#38Final Remarks Improved profitability backed by consistent strategic execution, reflecting a solid performance of the top- line together with efficiency measures implemented in recent years, delivering organic ROTE of 14.4% (pre-tax). Expanding the loan book (+3.8% net) with business performance in line with expectations, despite the highly challenging environment. Higher efficiencies with recurrent Cost-to-Income at 44.1% (-2pp YoY) and Cost of Risk at 45bps (-25bps YoY) backed by strategic investment towards streamlined operations and de-risking strategy. Fully Loaded Total Capital Ratio at 15.5%, increasing by 330bps in the year driven by strong bottom-line profitability and specific measures, ensuring compliance with normalised post-pandemic capital requirement. novobanco Targeting 2023E recurrent PBT > €600mn, driven by assets re-pricing, moderate cost of risk and cost control. 38#39ANNEX novobanco 39#402022 Financial Statements Income Statement - Quarterly data (€ million) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Net Interest Income 145.7 143.5 140.9 143.2 133.5 134.5 137.9 219.5 €mn QoQ +81.6 ▲ % QoQ +59% Fees and Commissions 62.8 72.8 72.3 74.6 68.8 75.6 71.3 77.6 +6.3 +9% Commercial Banking Income 208.5 216.3 213.2 217.9 202.3 210.1 209.2 297.2 +87.9 +42% Capital Markets Results 52.8 40.5 (59.7) 42.2 91.4 (5.6) (17.6) (44.2) (26.6) +151% Other Operating Results 12.2 (41.3) 30.3 39.2 16.7 56.5 88.0 22.3 (65.7) (75%) Banking Income 273.5 215.5 183.9 299.3 310.4 261.0 279.6 275.3 (4.3) (2%) Operating Costs 102.7 101.4 101.6 102.6 103.6 105.1 105.5 134.1 +28.6 +27% Staff Costs 58.7 58.9 57.9 57.8 55.7 56.1 57.9 63.9 +6.0 +10% General and Administrative Costs 35.9 34.2 35.1 35.8 38.2 39.2 37.7 47.1 +9.5 +25% Depreciation 8.1 8.2 8.6 9.0 9.8 9.8 9.9 23.1 +13.2 +133% Net Operating Income 170.8 114.1 82.3 196.6 206.8 155.9 174.1 141.1 (32.9) (19%) Net Impairments and Provisions 61.8 27.4 70.4 193.1 21.8 (2.0) 2.7 88.7 +86.0 Credit 54.9 29.8 30.3 34.4 14.3 5.0 20.2 (5.0) (25.2) Securities 0.9 15.1 1.4 30.4 11.1 30.6 2.4 23.6 +21.2 +894% Other Assets and Contingencies 6.0 (17.5) 38.7 128.4 (3.6) (37.6) (19.9) 70.1 +89.9 Income before Taxes 109.0 86.7 11.9 3.5 185.0 157.9 171.4 52.4 (118.9) (69%) Corporate Income Tax 4.2 16.9 (8.1) (28.2) 7.4 11.6 8.9 (81.1) (90.0) Special Tax on Banks 32.8 1.5 0.0 (0.1) 34.1 0.0 Income after Taxes 72.0 68.4 20.0 31.8 143.5 146.4 162.5 133.6 (28.9) (18%) Non-Controlling Interests 1.3 1.4 3.6 1.4 0.9 22.3 0.9 1.1 +0.2 +20% Net Income for the period 70.7 67.0 16.4 30.4 142.7 124.0 161.6 132.5 (29.1) (18%) novobanco 40#412022 Financial Statements Sustainable profitability following a successful transformation Sustainable earnings based on diversified and credible levers Recurrent PBT for the period 2021 – 2022 (€mm) 406.7 28.2 (6.1) 2.7 10.8 282.7 88.4 2021 Recovery of interest income on loans Increased efficiency Fees & Commission expansion COR normalization Other 2022 Improvement in net interest income with 2022 as first year of positive rates since 2016 and successful funding optimization initiatives novobanco Increase in fee and commission income, driven by higher number of transactions after pick-up in business activity Decrease in operating costs reflecting efficiency, improvements and business recalibration Cost of risk converging towards normalized levels, driven by strong clean-up of legacy portfolio (€8.8bn NPL reduction since 2017) 41#422022 Financial Statements Balance Sheet (€ thousands) Dec-21 Dec-22 Dec-21 Dec-22 Cash, cash balances at central banks and other demand deposits 5,871,538 6,599,078 Financial liabilities held for trading 306,054 99,386 Financial assets held for trading 377,664 171,810 Financial liabilities measured at amortised cost 40,215,994 40,987,177 Financial assets mandatorily at fair value through profit or loss 799,592 313,702 Due to banks 10,745,155 9,705,154 Financial assets at fair value through profit or loss, or through other comprehensive income Due to customers 27,582,093 29,277,858 7,220,996 2,331,099 Financial assets at amortised cost 26,039,902 Debt securities Loans and advances to credit institutions 2,338,697 50,466 32,777,693 8,183,209 Debt securities issued and subordinated debt and liabilities associated with transferred assets 1,514,153 1,628,897 Other financial liabilities 374,593 375,268 Derivatives Hedge accounting 19,639 562,845 43,548 Provisions 442,834 413,432 Loans and advances to customers 23,650,739 24,550,936 Tax liabilities 15,297 8,427 Derivatives Hedge accounting 19,639 562,845 Current tax liabilities 12,262 7,582 Fair value changes to the hedged items in portfolio hedge of interest rate risk 30,661 -383,689 Deferred tax liabilities 3,035 845 Other liabilities 443,437 839,919 Investments in subsidiaries, joint ventures and associates 94,590 119,744 Tangible assets Tangible fixed assets 864,132 Liabilities included in disposal groups classified as held for sale 968 798,831 Total Liabilities 41,469,044 15,492 42,483,411 238,945 299,264 Investment properties 625,187 499,567 Capital 6,054,907 6,304,661 Intangible assets Tax assets 67,986 69,832 Current tax assets Deferred tax assets 779,892 35,653 744,239 956,000 Other comprehensive income Retained earnings - accumulated -1,045,489 -1,234,573 -8,576,860 -8,577,074 32,570 Other reserves 6,501,374 6,439,418 Other assets 2,442,550 923,430 1,618,484 Profit or loss attributable to parent company shareholders Minority interests (Non-controlling interests) 184,504 560,842 31,035 18,344 Non-current assets and disposal groups classified as held for sale 9,373 Total Assets 44,618,515 59,587 45,995,029 Total Equity 3,149,471 Total Liabilities and Equity 44,618,515 3,511,618 45,995,029 novobanco 42#432022 Financial Statements Customer loans €mn Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 €mn YTD ▲ Consolidated % Customer Loans (net) Customer Loans (gross) Corporate Residential Mortgage Consumer finance and other 23 651 23 979 24 304 24 585 24 551 900 3.8% 24 899 25 215 25 541 25 823 25 617 719 2.9% 13 710 14 034 14 268 14 524 14 244 534 3.9% 9 782 9 766 9 833 9918 9 978 195 2.0% 1 406 1 416 1 440 1 381 1 395 - 11 -0.8% Non-Performing Loans (NPL)* 1 749 1 746 1 695 1 605 1 376 - 357 -20.4% Impairment NPL Ratio* ** 1 248 1 236 1 237 1 238 1 066 - 182 -14.5% 5.7% 5.7% 5.4% 5.0% 4.3% - 1.4p.p. NPL coverage* 71.4% 70.8% 73.0% 77.2% 76.7% + 5.3p.p. * Includes Deposits and Loans and advances to Banks and Customer Loans ** Includes impairment for Customer Loans and to Banks novobanco 43#442022 Financial Statements Real Estate - High quality plots #1 Project located in the heart of Lisbon and close to various offices. The project will include: • Residential building with retail units ⚫ Office building with retail units • Common areas in an exterior garden Key metrics: 133,168 sqm Total GCA 570 Residential Units #2 Located in the most modern area in Lisbon. The project is for residential and office units, being in a dynamic and consolidated area. Includes: • Co-living units Office units • Retail units 89,311 sqm Total GCA 46k sqm Office units #3 Project located in the wealthiest municipality in Portugal, near major office parks in the country. This upscale residential project offers 2 different concepts, allowing great flexibility: 1 pure traditional residential scheme and 1 touristic apartments scheme, enabling Co- living, buy-to-rent or alternative sub-uses. 81,988 sqm Total GCA 11 Number of Plots Co-living units 1 047 Units 494 Areas (sqm): Residential: 68k Office: 55k 51% 41% Retail: 6k Equipment: 4k Recent similar transactions: #4 Project located in a unique touristic destination in Algarve. Includes: • High end luxury Hotel • Townhouses • Branded residences • 5 Villas • #5 The project is located in Algarve, a major touristic destination, and close to the main beaches in the region. The concept includes: • Residential units Touristic apartments . Hotel 68,025 sqm Total GCA 386/242 Residences / Townhouses 150 rooms Hotel 115,506 sqm Total GCA 613/652 Apartments/Residences 153 rooms Hotel 5% 15% Office: 45k Co-living: 25k 7% Residential: 79k Retail: 3k 5% 50% Residential: 31k Townhouses: 16k Hotel: 15k Villas: 2.5k 8% Q=0=0=() 52% 28% Retail: 15k Equipment: 5k 93% 46% Amenities: 3k 50% 42% Year Comparable Asset Location Use GCA (sqm) €/sqm Year Comparable Asset Location Use GCA (sqm) €/sqm Year Comparable Asset Location Use Prime Lisbon Lisbon - Other 2019 Project #1 2018 Project #1 Lisbon Lisbon 2021 Project #1 Lisbon 2020 Project #1 Lisbon Mix-use Mix-use Residential Office 80,000 900-1,000 180,000 1,500-1,600 15,000 1,400-1,500 40,000 1,300-1,400 n.d. n.d. 2020 Project #2 Project #2 Project #2 Oeiras Lisboa Oeiras Residential & Retail Residential Residential 108,000 n.a. 2019 2019 Project #3 Lisboa Mix-use 60,000 120,000 300-400 550-650 500-600 250-350 Prime Algarve n.d. 2022 Project #4/5 Project #4/5 Algarve Algarve Residential Hotel novobanco Project #2 Oeiras Residential 6,587 750-850 Note: GCA Gross Construction Area Residential: 58k Touristic ap: 39k Hotel: 10k Retail: 9k GCA (sqm) €/sqm 115,000 750-850 6,800 900-1,000 44#452022 Financial Statements Investment portfolio Banking Book 9% PT sovereign debt 46% Other EU sovereign (by maturity; Dec-22; €mn; %) 4% Other sovereign 7% Supranational 11% HQLA1 (Corp + Fins) 24% Non-HQLA €10.8bn 3,130 3,087 2,822 6% 5% 2% 7% 3% 1% 5% 6% 1% 17% 2% 926 Inc: Restructuring Funds, Equity Holdings and Commercial Paper 10% 2% 470 393 10% %। 6% 5% 3% 4% 3% ≤2 12; 5] 15; 8] 18; 10] > 10 Other 31% 24% 26% 6% 7% 6% novobanco (1) HQLA: High Quality Liquid Assets 45#462022 Financial Statements Capital ratios CAPITAL RATIOS (CRD IV/CRR) €mn 31-Dec-21 31-Dec-21 31-Mar-22 31-Mar-22 30-Jun-22 30-Jun-22 (Phased-in) (Fully loaded) (Phased-in) (Fully loaded) (Phased-in) (Fully loaded) 30-Sep-22 30-Sep-22 31-Dec-22 31-Dec-22 (Phased-in) (Fully loaded) (Phased-in) (Fully loaded) Risk Weighted Assets (A) 24 929 24 689 23 761 23 622 23 058 22 914 22,848 22,695 21 355 21 233 Own Funds Common Equity Tier 1 (B) 2 768 2 507 2 571 2419 2 711 2 558 2,906 2,746 2 927 2 787 Tier 1 (C) 2 769 2 509 2 572 2 420 2712 2 559 2,908 2,747 2 928 2 789 Total Own Funds (D) 3 276 3016 3 076 2 925 3 214 3 061 3,409 3,248 3418 3 279 Common Equity Tier 1 Ratio (B/A) 11.1% 10.1% 10.8% 10.2% 11.8% 11.2% 12.7% 12.1% 13.7% 13.1% Tier 1 Ratio (C/A) 11.1% 10.1% 10.8% 10.2% 11.8% 11.2% 12.7% 12.1% 13.7% 13.1% Solvency Ratio (D/A) 13.1% 12.2% 12.9% 12.4% 13.9% 13.4% 14.9% 14.3% 16.0% 15.5% Leverage Ratio 6.0% 5.4% 5.5% 5.2% 5.7% 5.4% 5.9% 5.6% 6.1% 5.8% novobanco 46#472022 Financial Statements Execution of the de-risking strategy delivering Total Capital above targets CET 1 (phased-in¹; %) 13.1% Fully-loaded 8.7% CCYB CCB 2.5% P2R 1.7% P1 4.5% Required CET 1 novobanco Tier 1 (phased-in¹; %) Total Capital (phased-in¹; %) 15.5% Fully-loaded 16.0% 13.7% 13.7% 13.5% CCyB CCB CCyB CCB 10.8% 2.5% 2.5% P2R 3.0% P2R 2.3% Dec-22 CET 1 P1 6.0% Required Tier 1 Dec-22 Tier 1 P1 8.0% Required Total Capital Dec-22 Total Capital Organic capital generation and acceleration of balance sheet deleverage. Note: P2G of 1.5% applicable as of 1-Jan-23; (1) The inclusion of positive results depends on an authorization from the ECB; 47#482022 Financial Statements Bonds outstanding and MREL eligibility Description Senior ISIN Currency €mn; Dec-22 Outstanding Notional Value Issue Date Book Value¹ Maturity MREL NB 3.5% 23/07/24 OBRG. NB 4.25% 09/23 OBRG. NB 5.5% 30/12/24 OBRG. BES Luxembourg 3.5% 02/01/43 BES Luxembourg 3.5% 23/01/43 PTNOBIOM0014 EUR 300 Jul-21 304 Jul-24 Y PTNOBJOM0005 EUR 275 Dec-21 276 Sep-23 N PTNOBKOM0002 EUR 100 Dec-22 100 Dec-24 Y XS0869315241 EUR 64 Jan-13 43 Jan-43 Y XS0877741479 EUR 131 Jan-13 99 Jan-43 Y BES Luxembourg 3.5% 19/02/2043 BES Luxembourg 3.5% 18/03/2043 BES Luxembourg ZC XS0888530911 EUR 97 Feb-13 65 Feb-43 Y XS0897950878 EUR 70 Mar-13 48 Mar-43 Y XS0972653132 EUR 185 Oct-13 36 Oct-48 Y Banco Esp San Lux ZC 12/02/49 Banco Esp San Lux ZC 19/02/49 Banco Esp San Lux ZC 27/02/51 BES Luxembourg ZC 06/03/2051 BES Luxembourg ZC 03/04/48 BES Luxembourg ZC 09/04/52 BES Luxembourg ZC 16/04/46 EMTN 57 XS1031115014 EUR 245 Feb-14 44 Feb-49 Y XS1034421419 EUR 69 Feb-14 12 Feb-49 Y XS1038896426 EUR 108 Feb-14 17 Feb-51 Y XS1042343308 EUR 76 Mar-14 12 Mar-51 Y XS1053939978 EUR 220 Apr-14 40 Apr-48 Y XS1055501974 EUR 264 Apr-14 39 Apr-52 Y XS1058257905 EUR 37 Apr-14 8 Apr-46 Y XS0439764191 EUR 8 Jul-09 2 Jul-44 N Total (Senior) Subordinated NB 06/07/2028 Total (Senior+Subordinated) novobanco 2,249 1,143 PTNOBFOM0017 EUR 400 Jun-18 416 Jul-28 Y 2,649 1,559 (1) Book values include accrued interests 48#492022 Financial Statements Pension Funds Key Figures (€ Millions) Dec-20 Dec-21 Dec-22 Pension Fund Portfolio (Dec-22) Retirement Pension Liabilities 1 935 1 929 1 419 Fund Assets 1 908 1 908 1 478 Cash 7% 5% Liabilities Coverage 99% 99% 104% 8% 12% Real Estate Investment 20% 14% Funds Actuarial Assumptions Dec-20 Dec-21 Dec-22 Project rate of return on plan assets 1.00% 1.35% 4.00% Fixed Discount rate 1.00% 1.35% 4.00% Income 64% 62% Pension increase rate 0.25% 0.50% 0.75% Salary increase rate Mortability table men Mortability table women TV 88/90-2 yrs TV 88/90-3 yrs TV 88/90-3 yrs 0.50% 0.75% 1.00% TV 88/90 TV 88/90 TV 88/90 Equity 3% Dec-21 4% Dec-22 novobanco 49#502022 Financial Statements Deferred Tax Assets Overview of Deferred Tax Assets Of which in (€ millions) Dec-21 Dec-22 CET 1 Total DTAs on Balance Sheet 741 922 627 Timing-Difference DTAS - under Special Regime (1) 267 295 295 Timing-Difference DTAs - other 473 563 332 Tax Losses carried forward 1 64 Deferred Tax Assets as % of Equity² novobanco vs listed banks and average by market Off-Balance Sheet Timing-Difference DTAS Tax Losses carried forward • 1 811 1 651 c.50% as of Jun-17 334 239 1 477 1 412 26% 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, assuming average of base case and stressed cases of the business plan; 57% 42% 83% • DTAs under Special Regime: YoY change reflects tax audit correction related to 2018 and 2019. novobanco Domestic Peer Spanish Greek Top domestic Banks Banks (avg) (avg) novobanco (1) Special Regime applicable to Deferred Tax Assets approved by Law No. 61/2014, of August 26; (2) Novobanco analysis; average data considers 2022 available information; Spanish banks includes Caixabank, Bankinter, Unicaja and Sabadell; Greek banks includes NBG, Eurobank, Alpha Bank and Piraeus Bank 50#512022 Financial Statements CCA: €485mn available CCA - Contingent Capital Agreement Compensation amounts (€ million) 3,890 3,405 485 CCA Maximum Amount CCA Received Remaining CCA1 novobanco (1) Funds not included in Capital Ratios . • As agreed in Oct-2017, at sale process of novobanco, a Contingent Capital Agreement ("CCA") was entered into between the Resolution Fund ("FdR") and the Bank. ⚫ Outstanding divergences between novobanco and the Resolution Fund (amounts not recognized in CET1 capital as of 31 Dec 2022): 1. IFRS9 treatment 2. 2020 unpaid CCA Call: €165mn 3. 2021 unpaid CCA Call: €209mn • Up to an additional €485mn remains available for losses recognised in a predefined portfolio of assets ("CCA Assets") and other CCA covered losses (the "CCA Losses") in case CET1 ratio decreases below 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. 51#52ESG Our ESG Priorities and 2022 achievements... Sustainable Business €343mn Green investment¹ -19.1% Electricity Consumption (YoY) Social & Financial Well-being 4.5 K Participations in 5+ program (promoting physical and mental health, well-being and work-life balance for employees launched in June 22) Extra measures to support employees facing higher interest rates environment -100% Of electricity sourced from renewable sources -5.2% Paper consumption (YoY) €1.6mn In donations -7.6% CO2 emission (YoY)² •New Sustainability Credit Line: 。 Up to €250mn to support companies transition to a more sustainable and low-carbon economy • New Personal Loans for acquisition of hybrid and electric vehicles and investment in renewable energy solutions • 1.4 tons of expired bank cards sent to recycling and used to produce urban furniture novobanco 406 Hours volunteered by employees to social and environmental initiatives GOOD HEALTH AND WELL-BEING W 5.7% QUALITY EDUCATION ما GENDER EQUALITY DECENT WORK AND ECONOMIC GROWTH CLIMATE ACTION Responsible Banking Gender pay-gap³ (vs 6.0% in Jun-22) 27.5% Of women in senior leaders' roles4 61.1% Of suppliers with Sustainability scoring 70.6K Hours of cumulative ESG training to employees ⚫ ESG Talks Conference cycle addressing sustainability issues with 700+ participants • novobanco finances Sonae Group Sustainability linked Commercial Paper program up to €175mn and coordinates issuance of €70mn in Sustainability linked Bond for Mota-Engil •⚫ Launch of employees' Volunteering Program - 4 environmental and social initiatives • novobanco and novobanco dos Açores service accounts support 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) 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 EBOD team and senior managers; 52 42#53ESG 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: Definition of annual goals for green investment, agreed with key business lines and considering potential alignment with EU Taxonomy (conservative approach as compared with current market practices). • Definition of Key Risk Indicators for physical risk and exposure to relevant sectors that began monitoring in 2022 • • Comprehensive sectoral scoring of the portfolio and risk materiality assessment is underway with results in 1Q23 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 (ie: 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. 53#54ESG novobanco 2024 commitments Group novobanco ESG + 4.5 p.p. women in senior leadership positions 11 + €600mn - 18% GHG emissions (scope 1 and 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 Responsible Banking 40% employees benefiting from social well-being program6 + 2.5 p.p. 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#55Ratings 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 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 Deposits BB (low) Trend Stable R-4 Trend Stable B (high) Trend Stable R-4 Trend Stable Critical obligations rating BB (high) Trend Stable Senior unsecured debt Positive Outlook Subordinated Debt Subordinated debt B3 B (low) R-3 Trend Stable Trend Stable novobanco 55#56Glossary 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. 56#57Glossary 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) novobanco 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 initial fair value, impairment charges accounted in the period for credit risk and corporate bonds with gross customer loans and corporate bonds portfolio. 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%. 57#58Glossary 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 58#59novobanco Investor Relations contacts: Maria Fontes, Head of IR Bruno Santos Email: [email protected] Phone: +351 21 883 95 95 Avenida da Liberdade, 195, 9th floor 1250-142 Lisboa