Financial highlights⁽¹⁾

(1) Some indicators are presented according to management criteria of the Group, with concepts described and detailed at the glossary.
(2) On 1 January 2023, Millenniumbcp Ageas Grupo Segurador, S.G.P.S., S.A. (Mbcp Ageas), an entity 49.9% owned by the Group and accounted for under the equity method, adopted simultaneously IFRS9 - Financial Instruments and IFRS17 - Insurance Contracts. During the first half of 2024, Mbcp Ageas reviewed the transition adjustments relating to the adoption of those IFRS, which resulted in a reduction in the amount of the participation by EUR 9.1 million against reserves.
In 2024, the investments in Lusofundo – Fundo de Investimento Imobiliário Fechado, Fundo Especial de Investimento Imobiliário Fechado Eurofundo and Nexponor - Sociedade de Investimento Coletivo Imobiliário Fechado, S.A., were reclassified from "'Financial assets at fair value through profit or loss" to "Investments in associates". Consequently, the balances of these items were restated accordingly, in the total amount of EUR 34 million as at the end of 2023. Additionally, TIICC S.A.R.L. previously recognised under the item “Financial assets at fair value through other comprehensive income” was also reclassified to “Investments in associates” (EUR 4,000 as at the end of 2023). These accounting reclassifications also led to the reclassification of the respective results, from net trading income to equity accounted earnings, in the amount of EUR 1.6 million as at the end of 2023.
Following the change in off-balance sheet customer funds accounting criteria by the Polish subsidiary in 2024, the respective balances were restated, resulting in an increase of EUR 33 million with reference to the end of 2023.
(3) According to Instruction from the Banco de Portugal no. 16/2004, as the currently existing version.
(4) Excludes the impact of specific items: negative impact of EUR 12.6 million in 2024 and positive impact in the amount of EUR 123.9 million in 2023. In 2024, specific items recognised in staff costs in the activity in Portugal include: (i) costs with employment terminations, namely indemnities and early retirements; (ii) income recognised after an agreement related to liabilities with former directors of the Bank and (iii) a reversal of costs related to mortgage financing to former employees. In 2023, specific items include: income of EUR 139.1 million recognised in the international activity, related to the sale of 80% of the shares in Millennium Financial Services sp. z o.o. (EUR 127.9 million recognised in net trading income and EUR 11.2 million in other net operating income) and costs of EUR 15.3 million recognised as staff costs in the activity in Portugal [(i) costs related to the compensation for the temporary reduction in employee remunerations during 2014-2017, as distribution of part of the Bank's results obtained in 2022; (ii) costs with employment terminations, namely early retirements; (iii) costs with mortgage financing to former employees and (iv) income recognised after an agreement related to liabilities with former directors of the Bank].
(5) Includes the impact of certain impairments reversal in the second quarter of 2024 in the activity in Portugal, as well as the impact of the recovery associated with the out-of-court settlement in the subsidiary in Mozambique in 2023. Excluding these impacts, the cost of risk of the Group evolved from 48 b.p. to 40 b.p. in the last year.
(6) The capital ratios as at 31 December 2024 are estimated, including the positive cumulative net income and the estimated impact of the share buyback deduction.
(7) Of which, in Poland: 6,836 employees as at 31 December 2024 (corresponding to 6,714 FTE - full-time equivalent) and 6,872 employees as at 31 December 2023 (corresponding to 6,747 FTE - full-time equivalent).