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General Index

General Index. Highlights of 2006 Consolidated Operations Operations by Business Area Assets Quality and Solvency Other Indicators. Highlights of Activity in 2006. Consolidated net income up 36.5% to EUR 733.7 million

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General Index

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  1. General Index • Highlights of 2006 • Consolidated Operations • Operations by Business Area • Assets Quality and Solvency • Other Indicators

  2. Highlights of Activity in 2006 • Consolidated net income up 36.5% to EUR 733.7 million • Highest level of income before tax and minority shareholders’ interests in financial sector, in 2006, at EUR 989.8 million • Income tax of EUR 222.6 million, comprising an effective tax rate of 23.3% • Net operating income up 21.9% to EUR 2,977.3 million • Net-interest income (from banking and insurance) up 23% • Net commissions up 14.1% • Technical margin on insurance operations up 13.1%

  3. Highlights of Activity in 2006 (cont.) • Net assets up 11.3% to EUR 96.3 billion • Loans and advances to customers (gross) up 12.8% to EUR 58.8 billion • Total resources taken by Group up 10.6% to around EUR 87.6 billion • Gross return on equity (ROE) of 21.3% • Improvement in cost-to-income ratio from 61.4% to 54.7% • Improvement in credit quality and provisioning indicators • Solvency ratio of 10.6%, with Tier 1 and Core Tier 1 of 7.1% and 6.0% respectively • CGD continues to be the Portuguese bank with the best ratings

  4. Principal Indicators 2005 2006 Change % EURm 537.7 733,7 36.5% Net Income Net Operating Income (1) EURm 2,441.5 2,977.3 21.9% Net interest income (banking and insurance) EURm 1,454.5 1,788.3 23.0% Non-interest income (1) EURm 474.4 609.2 28.4% Technical Margin - Insurance EURm 512.6 579.9 13.1% Net Assets EURm 86,461 96,252 11.3% Loans and Advances to Customers EURm 52,153 58,834 12.8% Total Resources Taken EURm 79,202 87,563 10.6% Shareholders’ Equity EURm 4,325 5,006 15.8% Cost-to-Income % 61.4% 54.7% -6.7 p.p ROE % 18.3% 21.3% 3.0 p.p ROA 0.81% 1.10% 0.3 p.p % Solvency Ratio 12.4% 10.6% -1.8 p.p % Tier I 7.4% 7.1% -0.3 p.p % Note: Considering the consolidation of Compal by the equity accounting method (1) Excluding the capital gains realised on the disposal of the Unibanco investment in 2005.

  5. General Index • Highlights of 2006 • Consolidated Operations • Operations by Business Area • Assets Quality and Solvency • Other Indicators

  6. Consolidated Net Income for 2006 2005 2006 Charge % EURm Net interest Income 1,454.5 1,788.3 23.0% + Non-interest Income 658.3 609.2 -7.5% + 609.2 Non-interest Income (1) 474.4 28.4% + Technical Margin - Insurance 512.6 579.9 13.1% = Net Operating Income 2,625.4 2,977.3 13.4% Net Operating Income (1) 2,441.5 2,977.3 21.9% - Operating Costs 1,627.8 1,689.3 3.8% = Gross Income 997.6 1,288.1 29.1% - 348.9 408.0 16.9% Impairment and Provisions + 25.0 109.7 338.0% Income from Subsidiary and Associated Companies = 673.8 989.8 Income before Tax 46.9% - 222.6 87.0% Tax 119.0 Minority Shareholders’ Interests - 17.1 33.5 95.9% 733.7 = 537.7 36.5% Net Income Note: Considering the consolidation of Compal by the equity accounting method (1) Excluding the capital gains realised on the disposal of the Unibanco investment in 2005.

  7. 733.7 667.0 665.0 654.0 537.7 448.0 2001 2002 2003 2004 2005 2006 Annual Growth of Net Income EURm 36%

  8. Dividends Net Interest Income Evolution of Net Interest Income EURm Net interest income (banking+insurance) 23% 1,788 73 1.715 1,454 89 -18% 1,715 1,365 26% 2005 2006

  9. 89.0 73.0 2005 2006 Equity Capital Instruments EURm Evolution of Income from Equity Capital Instruments -18% Principal Equity Investments 2005 2006 EDP 32.7 17.5 PT 18.1 24.6 GALP - 10.9 Unibanco 18.5 - BCP 5.8 4.8 PT Multimedia 1.0 1.1 Cimpor - 2.0

  10. 364.4 609.2 319.4 474.4 2005 2006 2005 2006 Evolution of Non-Interest Income EURm Evolution of Non-interest Income * Commissions (net) 28% 14% (*) Excluding the capital gains realised on the disposal of the Unibanco investment, in 2005.

  11. 20,778 20,030 2005 2006 Operating Costs EURm Employee Costs Evolution of Operating Costs 6% 912 23 4% 10 1,689 1,628 859 879 14% 2% 142 125 -1% 635 644 2005 2006 Base Costs Pension F. Indemnities 6% Evolution of Employees 859 912 -748 2005 2006 Depreciation Other administrative expenditure Employee costs

  12. 31,002 28,670 2005 2006 Loans and Advances to Customers EURm Loans and Advances to Customers Mortgage Lending 13% 8% 58,834 3,413 22% 52,153 2,808 21,584 15% 18,778 11% 33,837 30,567 2005 2006 Individual Customers Companies Public Sector

  13. 87,563 79,202 2005 2006 Unit Trust Funds Pension Funds Customer Deposits (*) Other Resources Wealth Management Resources Taken and Under Management EURm Balance Sheet Resources Other Resources Taken Total Resources Taken + = 11% 10% 11% 74,817 67,666 12,746 11,536 18% -5% 23,230 19,709 3,856 4,076 20% 1,253 1,040 8% 51,587 19% 47,957 7,637 6,420 2005 2006 2005 2006 (*) Excluding Fixed-Rate Insurance Products recognised in Life Insurance branches.

  14. 32.4% 29.5% 2005 2006 1.1% 21.3% 18.3% 0.8% 2005 2006 2005 2006 Efficiency and Profitability Ratios Employee Costs Cost-to-Income 61.4% 57.7% 54.7% 51.6% 2005 2006 Banking Group Return on Average Equity Return on Average Assets Note: Gross profitability ratios considering average shareholders’ equity and net assets values.

  15. General Index • Highlights of 2006 • Consolidated Operations • Operations by Business Area • Assets Quality and Solvency • Other Indicators

  16. 60 734 28 38 153 456 Commercial Insurance International Investment Other Total Banking Banking Portugal Contribution to Net Income by Business Area EURm % of Total 62% 21% 5% 4% 8%

  17. Insurance

  18. Operations in Portugal Insurance Premiums Life Ranking 1st EURm 6% 3,175 Non-life 2,990 1st 1,422 1,519 Total 1,753 1,472 1st 2005 2006 Non-life Life

  19. 427 409 38 35 97.8% 95.4% 154.3 224 120.1 216 165 158 2005 2006 2005 2006 2005 2006 Depreciation / Amortisation Other Administrative Costs Employee Costs Principal Indicators Net Income Structure Costs Combined Ratio (Non-life) EURm EURm 28% -4% 2.4 pp.

  20. 63.2 30.0 54.1 25.0 2005 2006 2005 2006 36.1% 34.0% 2005 2006 Investment Banking EURm Net Operating Income Net Income Commissions 17% 22% 20% 43.2 35.4 2005 2006 Net Operating Income by Area Cost-to-Income -2.1 pp. Venture Capital Financial Advisory Project Finance Capital Market

  21. Principal Rankings Ranking (No. Operations) Equity Capital Markets Ranking (Value of Operations) Mergers & Acquisitions 2nd Place 1st Place 3rd Place 1st Place 2005 2006 2005 2006 Source: CMVM, CaixaBI Source: Bloomberg Ranking (Value of Operations) Project Finance Ranking (Value of Operations) Debt Capital Markets 1st Place 1st Place 1st Portuguese 5th Iberian 31st European 1st Portuguese 3rd Iberian 6th European 2005 2006 2005 2006 Source: Dealogic Source: Bloomberg

  22. 15.0 2,144 11.4 404 1,646 145 Property Leasing 609 512 2005 2006 0.83 0.79 1,070 930 Consumer Finance 2005 2006 Property Leasing Equipment Leasing 2005 2006 Factoring Consumer Finance Specialised Credit Loans and Advances to Customers Market Shares (%) EURm 30% 14.2 13.9 61 59 Factoring 2005 2006 10.1 9.2 Equipment Leasing 2005 2006

  23. Assets under Management and Commissions EURm Assets under Management Commissions 72 9% 18% 24,047 9 61 22,010 3 7 11 2 9 15,182 14,551 49 1,243 43 1,241 1,040 955 6, 381 5,465 2005 2006 2005 2006 Wealth Management and Advisory Wealth Management and Advisory Pension Funds Pension Funds Unit Trust Funds Unit Trust Funds Property Funds Property Funds

  24. Market Shares Unit Trust Funds Property Funds 2005 2005 2nd 3rd 2006 2006 1st 2nd Pension Funds Wealth Management 2005 2005 6th 3rd 2006 2006 5th 2nd

  25. 6,515 4,551 2005 2006 8,619 7,914 2005 2006 Credit and Resources EURm Loans and Advances to Customers* 43% France Branch Banco Caixa Geral BNU Macao Other Customer Resources 9% France Branch Banco Caixa Geral BNU Macao Other (*) Excluding international funding in France branch.

  26. General Index • Highlights of 2006 • Consolidated Operations • Operations by Business Area • Assets Quality and Solvency • Other Indicators

  27. 2005 2006 2.4% 2.2% 2.1% 1.9% 2.7% 2.3% 0.0% -0.4% 2005 2006 Total Overdue Credit Ratio Non-performing credit ratio Credit overdue for more than 90 days Non-performing credit ratio (net) 138.2% 115.3% 125.2% 101.4% 2005 2006 2005 2006 Non-performing Loans and Provisioning Total Overdue Credit Non-Performing Credit Overdue Credit Coverage > 90 days Non-performing Credit Coverage

  28. Equity Capital Potential accumulated capital gains/losses in available for sale share portfolio in CGD’s balance sheet 1 1 Change in 2006 2005 2006 EDP 69.1 272.4 203.3 PT (35.9) 30.8 66.7 BCP 38.4 66.6 28.2 PT Multimedia (6.9) 7.3 14.2 CIMPOR 0.4 19.1 18.7 GALP - 6.8 6.8 Euronext 10.4 30.1 19.7 TOTAL 75.5 433.1 357.6 (1) Recognised in balance sheet in reserves Other Relevant CGD Investments Investment (%) Acquisition Cost (EURm) REN 19.9% 160.0 AdP 20.4% 88.5

  29. 12.4% 10.6% 9.4% 2004 2005 2006 7.4% 7.1% 6.2% 6.0% 5.7% 6.3% 2004 2005 2006 2004 2005 2006 Solvency Ratios Total Ratio Core Tier I Tier I Note: Ratios calculated under Bank of Portugal regulations.

  30. Pension Liabilities EURm 2005 2006 Pension Liabilities 824.6 955.3 Pension Fund 824.6 955.3 Funding of Liabilities 100% 100% Corridor Used 60.3 68.0 121.7 Total Corridor 110.0 Medical Plan Liabilities 399.6 419.2 Provisions 399.6 419.2 Funding of Liabilities 100% 100% Discount Rate Used 4.75% 4.75% Women’s Mortality Table TV 88/90 TV 88/90 Men’s Mortality Table TV 73/77 TV 73/77 Wages Growth Rate 3.00% 3.00% Pensions Growth Rate 2.00% 2.00% Fund Yield 5.25% 5.25% Return on Pension Fund 9.22% 6.53%

  31. General Index • Highlights of 2006 • Consolidated Operations • Operations by Business Area • Assets Quality and Solvency • Other Indicators

  32. Market Shares Customer Deposits Loans and Advances to Customers* Ranking 2006 Ranking 2006 1st 2nd Mortgage Lending * Insurance Ranking 2006 Ranking 2006 1st 1st (*) Excluding securitised credits

  33. Ratings Standard & Poor’s Moody’s Fitch Ratings Long Term Short Term A+ A-1 Aa3 P-1 AA- F1+ Outlook Stable Stable Negative Standard & Poor’s (July 2006) “Caixa Geral de Depósitos’ ratings are based on the fact that the bank is fully owned by the Portuguese state (…); enjoying a solid position in domestic retail banking which provides the bank with a broad, stable low cost funding base and, particularly an adequate financial profile.” Moody’s (September 2006) “The rating awarded to Caixa Geral de Depósitos, has a stable trend, reflects the bank’s leading position in terms of market share in Portugal, its strong funding base and a low credit risk profile, with a diversified offer of products and services/diversified market position in which half of its credit portfolio is made up of mortgage lending. (…) CGD remains a benchmark operator in the banking system and enjoys a position, in the domestic market that very few European institutions enjoy in their respective countries.” Fitch Ratings (September 2006) “Caixa Geral de Depósitos’ ratings reflect its quality as a state-owned bank and its strong position in the market with a dominant share of individual customers’ deposits and mortgage lending.”

  34. A Group of Recognised Merit Highest ratings awarded to a Portuguese bank Moody’s, S&P, Fitch 2nd Insurance Group and 5th Bank in the Iberian Peninsula 1st Insurance Group in Portugal, leader in life and non-life insurance branches Associação Portuguesa de Seguradores Best, most solid bank, best customer inquiries facilities, clearest and most reliable information; highest trust ratio levels in eyes of bank customers Basef 2006 Bank with most widely used internet banking service and highest customer satisfaction indices Netsonda 2006 Best Equity House in Portugal Euromoney 2006 1st national, 3rd Iberian and 6th European in Project Finance PFI - Project Finance International Unit Trust Funds Leader in Portugal Associação Portuguesa de Fundos de Investimento, Pensões e Patrimónios CGD continues to enjoy 1st place in terms of banking reliability in the eyes of the Portuguese Portuguese still consider Fidelidade Mundial to be the leading, most trustworthy insurance company Selecções do Reader’s Digest

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