Financial Review Quarter 3 2023

Tight monetary policy is conducing to a deleveraging of the banking sector Total loans (bn) 230.0 228.1 227.0 227.9 227.0 YOY (%) 2.7 1.9 -0.2 -0.5 -0.7 Sep-22 Dec-22 Mar-23 Jun-23 Aug-23 Total customer deposits (€ bn) 287.7 291.4 283.6 286.6 285.6 7.1 6.4 YOY (%) 1.5 -0.3 -0.8 Sep-22 Dec-22 Mar-23 Jun-23 Aug-23 Santander Source: Statistics Portugal, Ministry of Finance, Santander Portugal forecasts and estimates. The stock of loans is declining at a faster pace, as economic agents react to the high interest rate environment. On the one hand, new loan demand has declined compared to the same period of last year, but shows signs of stabilization in recent months. On the other hand, households and companies continue to early redeem their loans, as financing costs, mostly at floating rate, rose. Asset quality continued to hold at historically low levels. Deposits decline YoY, as households and corporates partly repay in advance their loans. In June, the Government revised the interest rate paid on Saving Certificates, to a maximum of 2.5%, with a significant decline in new subscriptions. The banking sector continues to gradually increase the interest rates paid on deposits. 4

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