Novo Banco, Results 1H 2016

HIGHLIGHTS
Results

• Positive net operating income of EUR 142.3 million was higher than the 2015 full year net
  operating income (EUR 125.0 million), which shows NOVO BANCO Group’s growing incomegenerating
  capacity.
• Banking income was up by +7.7%, to EUR 446.5 million, underpinned by a 22.0% rise in net
  interest income, which accounted for 59% of banking income.
• Capital markets results amounting to EUR 60.6 million.
• Operating costs were reduced by 23.4% YoY, to EUR 304.2 million, reflecting the effort
  undertaken by the Group, namely through the reduction of its workforce, the simplification and
  improvement of processes and the optimisation of the operational and commercial structures.
• Cost to Income was 68% in the 1H2016, which compares with 96% in the 1H2015;
• Provisions totalled EUR 576.7 million (EUR 305.1 million more than in June 2015), including a
• EUR 109.6 million provision for the ongoing restructuring process costs.
• The 1H2016 consolidated net income was a loss of EUR 362.6 million, which is in line with the
  targets set in the Restructuring Plan; these results were negatively influenced by the referred
  provision for restructuring costs and the recognition of the full amount of the Special Tax on
• Banks and of the contributions to the Portuguese Resolution Fund and Single Resolution Fund.
• Excluding these effects the 1H2016 net income would be a loss of EUR 243.9 million, which is
  broadly the same as in the 1H2015.
• The 2nd quarter net income was a loss of EUR 113.3 million, which evidences an improving
  trend over the previous quarter.