1H22 Financial Performance

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%. novobanco 61

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