Accounts and Notes to the Accounts

The consolidated and individual financial statements presented in the 2020 Annual Report were approved by the Bank’s Board of Directors on 24 March 2021.

Banco Comercial Português, S.A. Sociedade Aberta (the ‘Bank’) is a private capital bank, established in Portugal in 1985. It started operating on 5 May 1986. The consolidated financial statements reflect the results of the operations of the Bank and all its subsidiaries (together referred to as the ‘Group’) and the Group’s interest in associates, for the years ended on 31 December 2020 and 2019. The separate financial statements reflect the results of the operations of the Bank for the years ended 31 December 2020 and 2019.

In accordance with Regulation (EC) no. 1606/2002 of the European Parliament and of the Council of 19 July 2002, and Bank of Portugal Notice no. 1/2015 (which revoked Bank of Portugal Notice no. 1/2005), the Group’s consolidated financial statements are required to be prepared, since 2005 (in the case of individual financial statements since 2016), in accordance with International Financial Reporting Standards (IFRS) as endorsed by the European Union (EU). IFRS comprise accounting standards issued by the International Accounting Standards Board (IASB), as well as interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) and its predecessor bodies.

The consolidated and individual financial statements and the accompanying notes were approved by the Bank’s Board of Directors on 24 March 2021.

Group’s Consolidated Financial Statements

Bank’s Individual Financial Statements

CONSOLIDATED INCOME STATEMENTS

FOR THE YEARS ENDED 31 DECEMBER 2020 AND 2019

Thousand euros

	Notes	2020	2019
Interest and similar income	2	1,805,583	1,991,445
Interest expense and similar charges	2	(272,408)	(442,917)
NET INTEREST INCOME		1,533,175	1,548,528
Dividends from equity instruments	3	4,775	798
Net fees and commissions income	4	702,656	703,497
Net gains / (losses) from financial operations at fair value through profit or loss	5	(9,561)	4,837
Net gains / (losses) from foreign exchange	5	92,144	69,391
Net gains / (losses) from hedge accounting operations	5	(2,322)	(5,682)
Net gains / (losses) from derecognition of financial assets and liabilities at amortised cost	5	(27,551)	(24,909)
Net gains / (losses) from derecognition of financial assets at fair value through other comprehensive income	5	100,063	99,676
Net gains / (losses) from insurance activity		10,524	11,752
Other operating income / (losses)	6	(159,820)	(144,400)
TOTAL OPERATING INCOME		2,244,083	2,263,488
Staff costs	7	646,700	668,232
Other administrative costs	8	335,495	376,455
Amortizations and depreciations	9	137,149	124,785
TOTAL OPERATING EXPENSES		1,119,344	1,169,472
NET OPERATING INCOME BEFORE PROVISIONS AND IMPAIRMENTS		1,124,739	1,094,016
Impairment for financial assets at amortised cost	10	(513,412)	(390,308)
Impairment for financial assets at fair value through other comprehensive income	11	(10,360)	2,180
Impairment for other assets	12	(79,173)	(96,034)
Other provisions	13	(238,292)	(57,484)
NET OPERATING INCOME		283,502	552,370
Share of profit of associates under the equity method	14	67,695	42,989
Gains / (losses) arising from sales of subsidiaries and other assets	15	(6,188)	31,907
NET INCOME BEFORE INCOME TAXES		345,009	627,266
Income taxes
Current	30	(113,317)	(100,908)
Deferred	30	(23,327)	(138,370)
NET INCOME AFTER INCOME TAXES FROM CONTINUING OPERATIONS		208,365	387,988
Income arising from discontinued or discontinuing operations	16	-	13,412
NET INCOME AFTER INCOME TAXES		208,365	401,400
Net income for the year attributable to:
Bank's Shareholders		183,012	302,003
Non-controlling interests	44	25,353	99,397
NET INCOME FOR THE YEAR		208,365	401,400
Earnings per share (in Euros)
Basic	17	0.010	0.018
Diluted	17	0.010	0.018

See accompanying notes to the consolidated financial statements.

Chief AccountantThe Executive Committee

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED 31 DECEMBER 2020 AND 2019

Thousand euros

2020

	Continuing operations	Discontinued operations	Total	Attributable to
	Continuing operations	Discontinued operations	Total	Bank's Shareholders	Non-controlling interests
NET INCOME FOR THE YEAR	208,365	-	208,365	183,012	25,353
ITEMS THAT MAY BE RECLASSIFIED TO THE INCOME STATEMENT (NOTE 43)
Debt instruments at fair value through other comprehensive income
Gains / (losses) for the year	245,536	-	245,536	212,166	33,370
Reclassification of (gains) / losses to profit or loss	(100,063)	-	(100,063)	(85,423)	(14,640)
Cash flows hedging
Gains / (losses) for the year	110,583	-	110,583	112,157	(1,574)
Other comprehensive income from investments in associates and others	13,452	-	13,452	13,480	(28)
Exchange differences arising on consolidation	(256,487)	-	(256,487)	(145,504)	(110,983)
IAS 29 application
Effect on equity of Banco Millennium Atlântico, S.A.	(1,202)	-	(1,202)	(1,202)	-
Fiscal impact	(76,487)	-	(76,487)	(73,238)	(3,249)
	(64,668)	-	(64,668)	32,436	(97,104)
ITEMS THAT WILL NOT BE RECLASSIFIED TO THE INCOME STATEMENT
Equity instruments at fair value through other comprehensive income
Gains / (losses) for the year (note 43)	(10,065)	-	(10,065)	(9,794)	(271)
Changes in own credit risk of financial liabilities at fair value through profit or loss (note 43)	461	-	461	461	-
Actuarial gains / (losses) for the year
BCP Group Pensions Fund (note 50)	(88,645)	-	(88,645)	(88,645)	-
Pension Fund - other associated companies	(3,610)	-	(3,610)	(3,436)	(174)
Fiscal impact	25,009	-	25,009	24,909	100
	(76,850)	-	(76,850)	(76,505)	(345)
Other comprehensive income / (loss) for the year	(141,518)	-	(141,518)	(44,069)	(97,449)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	66,847	-	66,847	138,943	(72,096)

See accompanying notes to the consolidated financial statements.

Chief AccountantThe Executive Committee

Thousand euros

2019

	Continuing operations	Discontinued operations	Total	Attributable to
	Continuing operations	Discontinued operations	Total	Bank's Shareholders	Non-controlling interests
NET INCOME FOR THE YEAR	387,988	13,412	401,400	302,003	99,397
ITEMS THAT MAY BE RECLASSIFIED TO THE INCOME STATEMENT (NOTE 43)
Debt instruments at fair value through other comprehensive income
Gains / (losses) for the year	183,516	-	183,516	184,115	(599)
Reclassification of (gains) / losses to profit or loss	(99,676)	-	(99,676)	(94,923)	(4,753)
Cash flows hedging
Gains / (losses) for the year	52,303	-	52,303	47,625	4,678
Other comprehensive income from investments in associates and others	3,539	-	3,539	3,530	9
Exchange differences arising on consolidation	(24,449)	-	(24,449)	(35,952)	11,503
IAS 29 application
Effect on equity of Banco Millennium Atlântico, S.A	(4,529)	-	(4,529)	(4,529)	-
Fiscal impact	(44,906)	-	(44,906)	(45,042)	136
	65,798	-	65,798	54,824	10,974
ITEMS THAT WILL NOT BE RECLASSIFIED TO THE INCOME STATEMENT
Equity instruments at fair value through other comprehensive income
Gains / (losses) for the year (note 43)	(10,109)	-	(10,109)	(10,508)	399
Changes in own credit risk of financial liabilities at fair value through profit or loss (note 43)	(4,019)	-	(4,019)	(4,019)	-
Actuarial gains / (losses) for the year
BCP Group Pensions Fund (note 50)	(285,335)	-	(285,335)	(285,335)	-
Pension Fund - other associated companies	(3,455)	-	(3,455)	(3,369)	(86)
Fiscal impact	(44,679)	-	(44,679)	(44,619)	(60)
	(347,597)	-	(347,597)	(347,850)	253
Other comprehensive income / (loss) for the year	(281,799)	-	(281,799)	(293,026)	11,227
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	106,189	13,412	119,601	8,977	110,624

See accompanying notes to the consolidated financial statements.

Chief AccountantThe Executive Committee

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2020 AND 2019

Thousand euros

	Notes	2020	2019
ASSETS
Cash and deposits at Central Banks	18	5,303,864	5,166,551
Loans and advances to credit institutions repayable on demand	19	262,395	320,857
Financial assets at amortised cost
Loans and advances to credit institutions	20	1,015,087	892,995
Loans and advances to customers	21	52,120,815	49,847,829
Debt securities	22	6,234,545	3,185,876
Financial assets at fair value through profit or loss
Financial assets held for trading	23	1,031,201	878,334
Financial assets not held for trading mandatorily at fair value through profit or loss	23	1,315,467	1,405,513
Financial assets designated at fair value through profit or loss	23	-	31,496
Financial assets at fair value through other comprehensive income	23	12,140,392	13,216,701
Hedging derivatives	24	91,249	45,141
Investments in associated companies	25	434,959	400,391
Non-current assets held for sale	26	1,026,481	1,279,841
Investment property	27	7,909	13,291
Other tangible assets	28	640,825	729,442
Goodwill and intangible assets	29	245,954	242,630
Current tax assets		11,676	26,738
Deferred tax assets	30	2,633,790	2,720,648
Other assets	31	1,296,812	1,239,134
TOTAL ASSETS		85,813,421	81,643,408
LIABILITIES
Financial liabilities at amortised cost
Resources from credit institutions	32	8,898,759	6,366,958
Resources from customers	33	63,000,829	59,127,005
Non subordinated debt securities issued	34	1,388,849	1,594,724
Subordinated debt	35	1,405,172	1,577,706
Financial liabilities at fair value through profit or loss
Financial liabilities held for trading	36	278,851	343,933
Financial liabilities at fair value through profit or loss	37	1,599,405	3,201,309
Hedging derivatives	24	285,766	229,923
Provisions	38	443,799	345,312
Current tax liabilities		14,827	21,990
Deferred tax liabilities	30	7,242	11,069
Other liabilities	39	1,103,652	1,442,225
TOTAL LIABILITIES		78,427,151	74,262,154
EQUITY
Share capital	40	4,725,000	4,725,000
Share premium	40	16,471	16,471
Other equity instruments	40	400,000	400,000
Legal and statutory reserves	41	254,464	240,535
Treasury shares	42	(40)	(102)
Reserves and retained earnings	43	642,397	435,823
Net income for the year attributable to Bank's Shareholders		183,012	302,003
TOTAL EQUITY ATTRIBUTABLE TO BANK'S SHAREHOLDERS		6,221,304	6,119,730
Non-controlling interests	44	1,164,966	1,261,524
TOTAL EQUITY		7,386,270	7,381,254
TOTAL LIABILITIES AND EQUITY		85,813,421	81,643,408

See accompanying notes to the consolidated financial statements.

Chief AccountantThe Executive Committee

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEARS ENDED 31 DECEMBER 2020 AND 2019

Thousand euros

	2020	2019
CASH FLOWS ARISING FROM OPERATING ACTIVITIES
Interests received	1,541,781	1,743,234
Commissions received	877,504	899,938
Fees received from services rendered	70,625	100,315
Interests paid	(248,487)	(426,571)
Commissions paid	(157,022)	(171,815)
Recoveries on loans previously written off	22,680	24,269
Net earned insurance premiums	16,386	17,418
Claims incurred of insurance activity	(6,053)	(6,591)
Payments (cash) to suppliers and employees (*)	(1,229,338)	(1,248,720)
Income taxes (paid) / received	(89,589)	(61,027)
	798,487	870,450
Decrease / (increase) in operating assets:
Receivables from / (Loans and advances to) credit institutions	169,528	(2,626)
Deposits held with purpose of monetary control	(291,669)	-
Loans and advances to customers receivable / (granted)	(4,080,970)	(1,901,159)
Short term trading account securities	(175,522)	165,922
Increase / (decrease) in operating liabilities:
Loans and advances to credit institutions repayable on demand	(12,437)	(108,587)
Deposits from credit institutions with agreed maturity date	2,560,161	(2,154,270)
Loans and advances to customers repayable on demand	7,077,726	5,444,107
Deposits from customers with agreed maturity date	(2,992,767)	(1,784,092)
	3,052,537	529,745
CASH FLOWS ARISING FROM INVESTING ACTIVITIES
Sale of investments held in associated companies	20	13
Acquisition of investments in subsidiaries (**)	-	(348,997)
Dividends received	11,891	11,003
Interest income from financial assets at fair value through other comprehensive income and at amortised cost	183,763	291,339
Sale of financial assets at fair value through other comprehensive income and at amortised cost	19,346,529	19,886,088
Acquisition of financial assets at fair value through other comprehensive income and at amortised cost	(39,893,571)	(50,627,555)
Maturity of financial assets at fair value through other comprehensive income and at amortised cost	17,992,857	32,096,533
Acquisition of tangible and intangible assets	(78,739)	(105,715)
Sale of tangible and intangible assets	11,276	14,475
Decrease / (increase) in other sundry assets	348,594	(231,448)
	(2,077,380)	985,736
CASH FLOWS ARISING FROM FINANCING ACTIVITIES
Issuance of subordinated debt	-	647,216
Reimbursement of subordinated debt	(165,017)	(129,536)
Issuance of debt securities	-	545,825
Reimbursement of debt securities	(271,849)	(310,448)
Issuance of commercial paper and other securities	22,694	238,839
Reimbursement of commercial paper and other securities	(239,116)	(171,641)
Issue of Perpetual Subordinated Bonds (Additional Tier 1)	-	396,325
Reimbursed of perpetual subordinated debt securities	-	(2,922)
Dividends paid to shareholders of the Bank	-	(30,228)
Dividends paid of perpetual subordinated debt securities	-	(148)
Dividends paid to non-controlling interests	(22,974)	(15,502)
Interest paid of the issue of Perpetual Subordinated Bonds (Additional Tier 1)	(37,000)	(27,750)
Increase / (decrease) in other sundry liabilities and non-controlling interests (***)	73,443	(224,200)
	(639,819)	915,830
Exchange differences effect on cash and equivalents	(256,487)	(24,449)
Net changes in cash and equivalents	78,851	2,406,862
Cash (note 18)	636,048	566,202
Deposits at Central Banks (note 18)	4,530,503	2,187,637
Loans and advances to credit institutions repayable on demand (note 19)	320,857	326,707
CASH AND EQUIVALENTS AT THE BEGINNING OF THE YEAR	5,487,408	3,080,546
Cash (note 18)	579,997	636,048
Deposits at Central Banks (note 18)	4,723,867	4,530,503
Loans and advances to credit institutions repayable on demand (note 19)	262,395	320,857
CASH AND EQUIVALENTS AT THE END OF THE YEAR	5,566,259	5,487,408

(*) In 2020, this balance includes the amount of Euros 2,077,000 (2019: Euros 4,551,000) related to short-term lease contracts and the amount of Euros 2,504,000 (2019: Euros 2,118,000) related to lease contrats of low value assets.
(**) In 2019, this balance included the investment in Euro Bank, S.A. (Euros 424,370,000), net of Cash and equivalents at the acquisition date (Euros 75,373,000).
(***) In 2020, this balance includes the amount of Euros 59,161,000 (2019: Euros 56,552,000) corresponding to payments of lease liabilities’ shares of capital.

See accompanying notes to the consolidated financial statements.

Chief AccountantThe Executive Committee

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEARS ENDED 31 DECEMBER 2020 AND 2019

Thousand euros

	Share capital	Share premium	Other equity instruments	Legal and statutory reserves	Treasury shares	Reserves and retained earnings	Net income for the year attributable to Bank's Shareholders	Equity attributable to Bank's Shareholders	Non-controlling interests (note 44)	Total equity
BALANCES AS AT 31 DECEMBER 2018	4,725,000	16,471	2,922	264,608	(74)	470,481	301,065	5,780,473	1,183,433	6,963,906
Net income for the year	-	-	-	-	-	-	302,003	302,003	99,397	401,400
Other comprehensive income	-	-	-	-	-	(293,026)	-	(293,026)	11,227	(281,799)
TOTAL COMPREHENSIVE INCOME	-	-	-	-	-	(293,026)	302,003	8,977	110,624	119,601
Results application:
Statutory reserve (note 41)	-	-	-	(30,000)	-	30,000	-	-	-	-
Legal reserve	-	-	-	5,927	-	(5,927)	-	-	-	-
Transfers for reserves and retained earnings	-	-	-	-	-	301,065	(301,065)	-	-	-
Dividends paid						(30,228)	-	(30,228)	-	(30,228)
Reimbursed of perpetual subordinated debt securities	-	-	(2,922)	-	-	-	-	(2,922)	-	(2,922)
Issue of Perpetual Subordinated Bonds (Additional Tier 1) (note 40)	-	-	400,000	-	-	-	-	400,000	-	400,000
Interest of Perpetual Subordinated Bonds (Additional Tier 1)	-	-		-	-	(27,750)	-	(27,750)	-	(27,750)
Taxes on Interest of Perpetual Subordinated Bonds (Additional Tier 1)	-	-	-	-	-	19	-	19	-	19
Costs with the issue of the Perpetual Subordinated Bonds (Additional Tier 1)	-	-	-	-	-	(3,675)	-	(3,675)	-	(3,675)
Taxes on costs with the Issue of Perpetual Subordinated Bonds (Additional Tier 1)	-	-	-	-	-	2	-	2	-	2
Reversal of deferred tax assets related with expenses with the capital increase	-	-	-	-	-	(3,652)	-	(3,652)	-	(3,652)
Sale of subsidiaries	-	-	-	-	-	-	-	-	(16,699)	(16,699)
Dividends from other equity instruments	-	-	-	-	-	(148)	-	(148)	-	(148)
Dividends (a)	-	-	-	-	-	-	-	-	(15,502)	(15,502)
Treasury shares	-	-	-	-	(28)	-	-	(28)	-	(28)
Other reserves	-	-	-	-	-	(1,338)	-	(1,338)	(332)	(1,670)
BALANCE AS AT 31 DECEMBER 2019	4,725,000	16,471	400,000	240,535	(102)	435,823	302,003	6,119,730	1,261,524	7,381,254
Net income for the year	-	-	-	-	-	-	183,012	183,012	25,353	208,365
Other comprehensive income	-	-	-	-	-	(44,069)	-	(44,069)	(97,449)	(141,518)
TOTAL COMPREHENSIVE INCOME	-	-	-	-	-	(44,069)	183,012	138,943	(72,096)	66,847
Results application (note 48):
Legal reserve (note 41)	-	-	-	13,929	-	(13,929)	-	-	-	-
Transfers for reserves and retained earnings	-	-	-	-	-	302,003	(302,003)	-	-	-
Interest of Perpetual Subordinated Bonds (Additional Tier 1)	-	-		-	-	(37,000)	-	(37,000)	-	(37,000)
Reversal of deferred tax assets related with expenses with the capital increase	-	-	-	-	-	(96)	-	(96)	-	(96)
Aquisition of subsidiaries	-	-	-	-	-	-	-	-	(1,080)	(1,080)
Dividends (a)	-	-	-	-	-	-	-	-	(22,974)	(22,974)
Treasury shares (note 42)	-	-	-	-	62	-	-	62	-	62
Other reserves (note 43)	-	-	-	-	-	(335)	-	(335)	(408)	(743)
BALANCE AS AT 31 DECEMBER 2020	4,725,000	16,471	400,000	254,464	(40)	642,397	183,012	6,221,304	1,164,966	7,386,270

(a) Dividends of BIM - Banco Internacional de Moçambique, S.A. and SIM - Seguradora Internacional de Moçambique, S.A.R.L.

See accompanying notes to the consolidated financial statements.

Chief AccountantThe Executive Committee

SEPARATE INCOME STATEMENTS

FOR THE YEARS ENDED 31 DECEMBER 2020 AND 2019

Thousand euros

	Notes	2020	2019
Interest and similar income	2	893,687	944,520
Interest expense and similar charges	2	(99,268)	(152,522)
NET INTEREST INCOME		794,419	791,998
Dividends from equity instruments	3	15,818	19,677
Net fees and commissions income	4	465,392	467,552
Net gains / (losses) from financial operations at fair value through profit or loss	5	(55,438)	(42,540)
Net gains / (losses) from foreign exchange	5	55,415	13,626
Net gains / (losses) from hedge accounting operations	5	398	(968)
Net gains / (losses) from derecognition of financial assets and liabilities at amortised cost	5	(28,157)	(9,447)
Net gains / (losses) from derecognition of financial assets at fair value through other comprehensive income	5	71,347	94,578
Other operating income / (loss)	6	(48,631)	(42,255)
TOTAL OPERATING INCOME		1,270,563	1,292,221
Staff costs	7	384,985	401,052
Other administrative costs	8	182,829	196,526
Amortisations and depreciations	9	77,805	70,528
TOTAL OPERATING EXPENSES		645,619	668,106
NET OPERATING INCOME BEFORE PROVISIONS AND IMPAIRMENTS		624,944	624,115
Impairment for financial assets at amortised cost	10	(354,213)	(277,097)
Impairment for financial assets at fair value through other comprehensive income	11	(10,362)	2,180
Impairment for other assets	12	(93,284)	(90,383)
Other provisions	13	(37,494)	994
NET OPERATING INCOME		129,591	259,809
Gains / (losses) arising from sales of subsidiaries and other assets	14	(485)	27,201
NET INCOME BEFORE INCOME TAXES		129,106	287,010
Income taxes
Current	27	(6,763)	11,393
Deferred	27	(71,710)	(159,107)
NET INCOME FOR THE YEAR		50,633	139,296
Earnings per share (in Euros)
Basic	15	0.001	0.007
Diluted	15	0.001	0.007

See accompanying notes to the separate financial statements.

Chief AccountantThe Executive Committee

SEPARATE STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED 31 DECEMBER 2020 AND 2019

Thousand euros

	Notes	2020	2019
NET INCOME FOR THE YEAR		50,633	139,296
ITEMS THAT MAY BE RECLASSIFIED TO THE INCOME STATEMENT	39
Debt instruments at fair value through other comprehensive income
Gains / (losses) for the year		181,442	188,298
Reclassification of (gains) / losses to profit or loss		(71,347)	(94,578)
Cash flows hedging
Gains / (losses) for the year		113,738	42,929
Fiscal impact		(70,663)	(44,959)
		153,170	91,690
ITEMS THAT WILL NOT BE RECLASSIFIED TO THE INCOME STATEMENT
Equity instruments at fair value through other comprehensive income
Gains / (losses) for the year	39	(17,534)	(19,387)
Changes in own credit risk of financial liabilities at fair value through profit or loss	39	461	(4,019)
Actuarial gains / (losses) for the year	45	(87,043)	(281,760)
Fiscal impact		26,744	(43,781)
		(77,372)	(348,947)
Other comprehensive income / (loss) for the year		75,798	(257,257)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR		126,431	(117,961)

See accompanying notes to the separate financial statements.

Chief AccountantThe Executive Committee

SEPARATE BALANCE SHEET

AS AT 31 DECEMBER 2020 AND 2019

Thousand euros

	Notes	2020	2019
ASSETS
Cash and deposits at Central Banks	16	4,650,772	4,049,676
Loans and advances to credit institutions repayable on demand	17	101,809	126,050
Financial assets at amortised cost
Loans and advances to credit institutions	18	350,896	514,309
Loans and advances to customers	19	35,029,071	32,386,351
Debt securities	20	5,577,875	2,448,401
Financial assets at fair value through profit or loss
Financial assets held for trading	21	945,317	642,358
Financial assets not held for trading mandatorily at fair value through profit or loss	21	1,277,826	1,444,772
Financial assets designated at fair value through profit or loss	21	-	31,496
Financial assets at fair value through other comprehensive income	21	8,085,669	8,078,870
Hedging derivatives	22	74,704	34,990
Investments in subsidiaries and associated companies	23	3,101,912	3,135,649
Non-current assets held for sale	24	754,163	929,066
Other tangible assets	25	366,851	395,770
Intangible assets	26	48,323	40,822
Current tax assets		6,163	8,984
Deferred tax assets	27	2,469,190	2,584,903
Other assets	28	1,124,952	1,094,337
TOTAL ASSETS		63,965,493	57,946,804
LIABILITIES
Financial liabilities at amortised cost
Resources from credit institutions	29	10,960,177	8,181,865
Resources from customers	30	41,380,458	36,492,065
Non subordinated debt securities issued	31	1,814,653	1,496,508
Subordinated debt	32	976,882	1,125,053
Financial liabilities at fair value through profit or loss
Financial liabilities held for trading	33	243,934	269,166
Financial liabilities at fair value through profit or loss	34	1,599,405	3,201,310
Hedging derivatives	22	121,559	121,474
Provisions	35	270,435	260,446
Current tax liabilities		1,927	1,480
Other liabilities	36	614,277	904,997
TOTAL LIABILITIES		57,983,707	52,054,364
EQUITY
Share capital	37	4,725,000	4,725,000
Share premium	37	16,471	16,471
Other equity instruments	37	400,000	400,000
Legal and statutory reserves	38	254,464	240,535
Reserves and retained earnings	39	535,218	371,138
Net income for the year		50,633	139,296
TOTAL EQUITY		5,981,786	5,892,440
TOTAL LIABILITIES AND EQUITY		63,965,493	57,946,804

See accompanying notes to the separate financial statements.

Chief AccountantThe Executive Committee

SEPARATE STATEMENT OF CASH FLOWS

FOR THE YEARS ENDED 31 DECEMBER 2020 AND 2019

Thousand euros

	2020	2019
CASH FLOWS ARISING FROM OPERATING ACTIVITIES
Interests received	767,953	862,967
Commissions received	591,455	619,570
Fees received from services rendered	51,876	66,109
Interests paid	(70,253)	(140,801)
Commissions paid	(99,857)	(103,311)
Recoveries on loans previously written off	6,691	8,691
Payments (cash) to suppliers and employees (*)	(679,814)	(693,597)
Income taxes (paid) / received	(3,196)	20,980
	564,855	640,608
Decrease / (increase) in operating assets:
Receivables from / (Loans and advances to) credit institutions	163,565	(9,637)
Loans and advances to customers receivable / (granted)	(2,437,725)	(394,595)
Short term trading account securities	(339,302)	140,370
Increase / (decrease) in operating liabilities:
Loans and advances to credit institutions repayable on demand	120,022	(171,359)
Deposits from credit institutions with agreed maturity date	2,642,320	(1,237,613)
Loans and advances to customers repayable on demand	4,196,744	2,986,683
Deposits from customers with agreed maturity date	(788,696)	(1,591,066)
	4,121,783	363,391
CASH FLOWS ARISING FROM INVESTING ACTIVITIES
Sale of investments held in associated companies	20	13
Acquisition of shares in subsidiaries and associated companies	(37,015)	(1,017)
Dividends received	11,560	16,670
Interest income from financial assets at fair value through other comprehensive income and at amortised cost	14,880	69,634
Sale of financial assets at fair value through other comprehensive income and at amortised cost	15,098,916	17,420,488
Acquisition of financial assets at fair value through other comprehensive income and at amortised cost	(19,426,303)	(17,438,490)
Maturity of financial assets at fair value through other comprehensive income and at amortised cost	1,131,974	1,115,291
Acquisition of tangible and intangible assets	(43,648)	(51,137)
Sale of tangible and intangible assets	5,414	1,293
Decrease / (increase) in other sundry assets	89,360	(320,702)
	(3,154,842)	812,043
CASH FLOWS ARISING FROM FINANCING ACTIVITIES
Issuance of subordinated debt	-	450,000
Reimbursement of subordinated debt	(161,285)	(129,086)
Issuance of debt securities	350,000	833,225
Reimbursement of debt securities	(107,485)	(151,878)
Issuance of commercial paper and other securities	22,694	238,839
Reimbursement of commercial paper and other securities	(239,116)	(171,641)
Issuance of perpetual subordinated bonds (Additional Tier 1)	-	396,325
Reimbursed of perpetual subordinated debt securities	-	(2,922)
Dividends paid to shareholders of the Bank	-	(30,228)
Dividends paid of perpetual subordinated debt securities	-	(148)
Dividends paid of perpetual subordinated bonds (Additional Tier 1)	(37,000)	(27,750)
Increase / (decrease) in other sundry liabilities (**)	(217,894)	(273,843)
	(390,086)	1,130,893
Net changes in cash and equivalents	576,855	2,306,327
Cash (note 16)	381,202	355,745
Deposits at Central Banks (note 16)	3,668,474	1,327,177
Loans and advances to credit institutions repayable on demand (note 17)	126,050	186,477
CASH AND EQUIVALENTS AT THE BEGINNING OF THE YEAR	4,175,726	1,869,399
Cash (note 16)	345,767	381,202
Deposits at Central Banks (note 16)	4,305,005	3,668,474
Loans and advances to credit institutions repayable on demand (note 17)	101,809	126,050
CASH AND EQUIVALENTS AT THE END OF THE YEAR	4,752,581	4,175,726

(*) In 2020, this balance includes the amount of Euros 104,000 (31 December 2019: Euros 541,000) related to short-term lease contracts and the amount of Euros 1,853,000 (31 December 2019: Euros 1,540,000) related to lease contracts of low value assets.
(**) In 2020, this balance includes the amount of Euros 19,355,000 (31 December 2019: Euros 18,853,000) corresponding to payments of lease liabilities’ shares of capital.

See accompanying notes to the separate financial statements.

Chief AccountantThe Executive Committee

SEPARATE STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED 31 DECEMBER 2020 AND 2019

Thousand euros

	Share capital	Share premium	Other equity instruments	Legal and statutory reserves	Reserves and retained earnings	Net income for the year	Total equity
BALANCE AS AT 31 DECEMBER 2018	4,725,000	16,471	2,922	264,608	522,895	59,267	5,591,163
Fair value reserves	-	-	-	-	23,839	-	23,839
Merger reserve of Banco de Investimento Imobiliário, S.A. (BII) on Banco Comercial Português, S.A. (BCP)	-	-	-	-	63,901	-	63,901
BALANCE AS AT 1 JANUARY 2019	4,725,000	16,471	2,922	264,608	610,635	59,267	5,678,903
Net income for the year	-	-	-	-	-	139,296	139,296
Other comprehensive income	-	-	-	-	(257,257)	-	(257,257)
TOTAL COMPREHENSIVE INCOME	-	-	-	-	(257,257)	139,296	(117,961)
Results aplications:
Legal reserve (note 38)	-	-	-	5,927	(5,927)	-	-
Statutory reserve (note 38)	-	-	-	(30,000)	30,000	-	-
Transfers for Reserves and retained earnings	-	-	-	-	59,267	(59,267)	-
Dividends	-	-	-	-	(30,228)	-	(30,228)
Reimbursed of perpetual subordinated debt securities (note 37)	-	-	(2,922)	-	-	-	(2,922)
Issue of perpetual subordinated bonds (Additional Tier 1) (note 37)	-	-	400,000	-	-	-	400,000
Interests of the perpetual subordinated bonds (Additional Tier 1)	-	-	-	-	(27,750)	-	(27,750)
Taxes on interests of the perpetual subordinated bonds (Additional Tier 1)	-	-	-	-	19	-	19
Costs with the issue of the perpetual subordinated bonds (Additional Tier 1)	-	-	-	-	(3,675)	-	(3,675)
Taxes on costs with the issue of the perpetual subordinated bonds (Additional Tier 1)	-	-	-	-	2	-	2
Reversal of deferred tax assets related with expenses with the capital increase	-	-	-	-	(3,652)	-	(3,652)
Costs with merger reserve	-	-	-	-	(148)	-	(148)
Dividends from other equity instruments	-	-	-	-	(148)	-	(148)
BALANCE AS AT 31 DECEMBER 2019	4,725,000	16,471	400,000	240,535	371,138	139,296	5,892,440
Net income for the year	-	-	-	-	-	50,633	50,633
Other comprehensive income	-	-	-	-	75,798	-	75,798
TOTAL COMPREHENSIVE INCOME	-	-	-	-	75,798	50,633	126,431
Results aplications:
Legal reserve (note 38)	-	-	-	13,929	(13,929)	-	-
Transfers for Reserves and retained earnings	-	-	-	-	139,296	(139,296)	-
Interests of the perpetual subordinated bonds (Additional Tier 1)	-	-	-	-	(37,000)	-	(37,000)
Reversal of deferred tax assets related with expenses with the capital increase	-	-	-	-	(96)	-	(96)
Other reserves (note 39)	-	-	-	-	11	-	11
BALANCE AS AT 31 DECEMBER 2020	4,725,000	16,471	400,000	254,464	535,218	50,633	5,981,786

See accompanying notes to the separate financial statements.

Chief AccountantThe Executive Committee

Notes to the Financial Statements

Accounting policies

1

Net interest income

2

Dividends from equity instruments

3

Net fees and commissions income

4

Net gains / (losses) on financial operations

5

Other operating income / (losses)

6

Staff costs

7

Other administrative costs

8

Amortisations and depreciations

9

Impairment for financial assets at amortised cost

10

Impairment for financial assets at fair value through other comprehensive income

11

Impairment for other assets

12

Other provisions

13

Share of profit / (loss) of associates under the equity method

14

Gains / (losses) arising from sales of subsidiaries and other assets

15

Income / (loss) arising from discontinued or discontinuing operations

16

Earnings per share

17

Cash and deposits at Central Banks

18

Loans and advances to credit institutions repayable on demand

19

Loans and advances to credit institutions

20

Loans and advances to customers

21

Debt securities

22

Financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income

23

Hedging derivatives

24

Investments in associated companies

25

Non-current assets held for sale

26

Investment property

27

Other tangible assets

28

Goodwill and intangible assets

29

Income tax

30

Other assets

31

Resources from credit institutions

32

Resources from customers and other loans

33

Non subordinated debt securities issued

34

Subordinated debt

35

Financial liabilities held for trading

36

Financial liabilities designated at fair value through profit or loss

37

Provisions

38

Other liabilities

39

Share capital, Preference shares and Other equity instruments

40

Legal and statutory reserves

41

Treasury shares

42

Reserves and retained earnings

43

Non-controlling interests

44

Guarantees and other commitments

45

Assets under management and custody

46

Transfers of assets

47

Relevant events occurred during 2020

48

Fair value

49

Post-employment benefits and other long term benefits

50

Related parties

51

Consolidated Balance sheet and Income statement by geographic and operational segments

52

Solvency

53

Risk management

54

Mozambique's sovereign debt

55

Contingent liabilities and other commitments

56

Provisions for legal risk related to foreign currency-indexed mortgage loans in Bank Millennium (Poland)

57

Recently issued accounting standards

58

Application of IFRS 16 – Leases

59

Acquisition/Merger of Euro Bank, S.A.

60

Impact of Covid-19 Pandemic

61

List of subsidiary and associated companies of Banco Comercial Português Group

62

Subsequent events

63

Notes to the Financial Statements

1. Accounting policies