1H22 Financial Performance

Continuing to deliver improved profitability... I novobanco announces a net income of €266.7mn (1H21: €137.7mn; 2Q22: €124.0mn) and RoTE¹ improving to 11.0%. The business performance is in line with expectations. The results confirm continued and stable return to profitability along with the de-risking of the balance sheet given the significant restructuring over recent years. These achievements were recently acknowledged by Moody's with 2 notches rating upgrade (BCA from caa1 to b2), maintaining positive outlook. Moving towards an expanding loan book with €2.0bn customer loans origination in 1H22 (+41% vs 1H21), of which 60% in the corporate segment. Net customer loans at €24.3bn (+€653mn YTD) reflecting the growth of the market-leading corporate segment, as well as the mortgage and consumer loan portfolio. Deposits increasing by 3.9% YTD (€1.1bn), driven by the Retail segment. NII was €268.0mn (-7.3% YoY), reflecting the higher funding cost due to senior debt issuance in 4Q21 and negative interest rates on money market placements. Reflecting a strong performance and an improved quarterly trend, fee income increased by +6.5% YoY. Cost/Income ratio² at 49% on a recurrent basis. (1Q22: 50%; 2Q22: 49% on recurrent basis). COR of 15bps (1H21: 68bps or 40bps ex-Covid related provisions) benefiting from successful recovery of moratoria clients and contained macroeconomic impacts. NPL ratio of 5.4% (Dec-21: 5.7%; Dec-20: 8.9%) and a NPL coverage at 73.0% (Dec-21: 71.4%), given the successful ongoing de-risking strategy. RE exposure decreasing to 1.5% of total assets (-0.3pp YTD; once the sale of the logistics portfolio³ is completed). Driven by strong bottom-line profitability, CET 1 to increase 1.0pp in the quarter to 11.8% and Total capital ratio reached 13.9% (Mar/22: 12.9%), already above 13.5% OCR4 requirement. A capital accretive business model, combined with specific capital-generating measures, to 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) Closing on 82% of the assets occurred in July 2022; (4) OCR Overall Capital Requirement 19

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