1st Quarter Results

Banco Comercial Portugues S.A.
22 April 2003



FOR IMMEDIATE RELEASE
ARPIL 22, 2003


                         BANCO COMERCIAL PORTUGUES ('BCP')

                     EARNINGS RELEASE FOR THE FIRST QUARTER OF 2003





•    Strengthened capitalisation:
          
     -    total BIS capital ratio of 11.9%, with Tier One standing at 7.3%.

     -    takes into account the conclusion of the Euro 931 million rights 
          issue, the acquisition of 100% of the share capital of Seguros e 
          Pensoes and the full consolidation of Bank Millennium;

•    Successful rights offering:

     -    total relevant subscription and oversubscription requests exceeded by
          153% the total amount on offer.

     -    created thirty thousand new shareholders and an increased 
          institutional participation in BCP's share capital;

•    Net income for the first quarter of 2003 at Euro 95.6 million, 36.7% up
     from the last quarter of 2002. Main highlights:

     -    Net interest margin maintained at 2.5%;

     -    Banking commissions up by 2.0%, excluding markets;

     -    Operating costs down by 6.9%. Staff and other administrative costs
          down by 5.1% and by 8.0%, respectively;

     -    Rationalisation of total domestic banking staff, down by 112 employees 
     since year-end 2002.

•    Focused growth of loans to customers, up by 0.8% from the end of 2002.
     Special emphasis on mortgage loans (+4.6% from December 31, 2002). Consumer
     credit down by 4.3%. Corporate loans stable;

•    Preservation of credit quality: loans overdue by more than 90 days 
     accounted for 1.2% of total loans. Coverage by provisions at 166.6%;

•    Total customers' funds up by 1.0% from the end of 2002. Time deposits up
     by 5.9% over the same period;

•    BCP's ratings affirmed at A+/F1, A-/A-2 and A1/P-1 by Fitch, Standard &
     Poor's and Moody's, respectively. Fitch withdrew its negative rating watch
     outlook, while Moody's changed its outlook on BCP to 'stable' from 
     'negative', reflecting the positive impact of the rights offering.

'The significant improvement in capital levels was the main feature of the
Bank's activity in the first quarter of 2003. We successfully concluded a rights
offering, widening the shareholder base and improving BCP's share liquidity. We
consider the Bank's current capital to be adequate for our strategy, which as
previously announced, is to focus on the careful management of shareholdings
with an the emphasis on growing the profitability of our retail banking
operations. Current solvency levels already reflect the recent re-acquisition of
Seguros e Pensoes and the full consolidation of Bank Millennium, and we do not
anticipate any transaction leading to a significant consumption of existing
capital', commented Mr. Jorge Jardim Goncalves, Chairman and CEO of BCP. 'We
maintain total confidence in the Bank's capacity to generate capital through
earnings and to create value through future disposals. Together with careful
management of credit risks, we believe this will enable us to preserve and
improve our capital position from current levels', he added.

The impact of the measures implemented aiming at strengthening own funds (namely
a rights issue that increased BCP's share capital by Euro 931 million at the end
of March 2003 and the Euro 700 million issue of mandatorily convertible
securities that took place at the end of 2002), was partially compensated for by
the effect of exchange rate depreciation, the full consolidation of Bank
Millennium and the acquisition of Seguros e Pensoes. In spite of these effects,
BCP still achieved a significant increase in its solvency indicators. The
solvency ratio at March 31, 2003 amounted to 11.0% in accordance with the rules
of the Bank of Portugal, while it stood at 11.9% according to BIS (Tier One
ratio of 7.3%).


     REGULATORY CAPITAL (BIS)    31 Mar. 2003   31 Dec. 2002      Change
        (Millions of euros)                                      2002-2003

Tier One Capital                                                   
    - 'Core'                           2,665          2,072       28.6%
    - Preference Shares                1,193          1,198       -0.4%
    - Total                            3,858          3,270       18.0%
Tier Two Capital                                                                             
    - Debt                             3,043          2,880        5.7%
    - Deductions                       (569)          (776)      -26.7%
    - Total                            2,474          2,104       17.6%
Total Regulatory Capital               6,332          5,374       17.8%

Risk Weighted Assets                  53,038         49,885        6.3%

Ratios                                                             
     - Tier One                          7.3%           6.6%            
     - Tier Two                          4.6%           4.2%            
     - Total                            11.9%          10.8%            

The consolidated net income of Banco Comercial Portugues amounted to Euro 95.6
million in the first quarter of 2003, up 36.7% from the comparable figure for
the last quarter of 2002. Return on equity stood at 17.9%, with return on assets
standing at 0.6%.

                                                                                                           
  PROFITABILITY                           1st Quarter   4th Quarter      Change
  INDICATORS                                 2003         2002(1)      2002-2003

Net income                                   95.56         69.92       36.7%
(Millions of euros)                                                                                     
ROE                                          17.9%         13.8%           -
ROA                                           0.6%          0.4%           -
ROA before minority interests                 0.7%          0.6%           -
                                                                                  
(1) Excluding an additional provision charge of Euro 200 million. 

'Given the current economic framework, and the deterioration that we have seen
over the last few months, the maintenance of our net interest margin is worth
highlighting. In particular as this was achieved in spite of the decrease in key
interest rates. The increase in banking commissions not related to capital
markets activities and the growth of mortgage loans are also noteworthy, and
reflect our emphasis on active management of commercial activity, aimed at
increasing business and enhancing the profitability of our customer base, in a
consistent and structured manner. This has been achieved together with our
efforts to cut operating costs, the results of which are already visible in
several areas of all the Group's companies and operating units', commented Mr.
Jardim Goncalves regarding BCP's earnings performance during the first quarter
of 2003.

The increase of the Bank's shareholding in Poland's Bank Millennium to 50.0% of
its share capital at the end of 2002 led to the full consolidation of this
institution from January 1, 2003. As this interest was previously consolidated
using the equity method, we have produced pro forma financial statements for
2003. The change to Bank Millennium's consolidation method resulted in
significant increases of total assets (+6.4%), loans to customers (+5.4%) and
total customers' funds (+5.6%).

In addition, BCP no longer consolidates its shareholding in Banco Sabadell as
from January 1, 2003. Also, following the realignment of BCP's strategic
alliance with Eureko, the Group ceased to appropriate the net income of this
company as from the second half of 2002, and acquired the whole share capital of
Seguros e Pensoes, with this acquisition being reflected in the consolidated
financial statements from March 31, 2003.

As a result of these changes, the following analysis is based on the financial
statements for the fourth quarter of 2002, which are comparable to the 'pro
forma' figures now presented for the first quarter of 2003.

The increase of business volumes, notably of total customers' funds that were up
by 1.0% from the end of 2002, have contributed to a net interest income of Euro
330.2 million in the first three months of 2003, almost at the same level as
seen in last quarter of 2002 (Euro 331.2 million). Net interest income was also
favourably influenced by the impact of pricing revisions that took place in
2002. These contributed to the maintenance of the net interest margin at 2.5%,
thus compensating for the continuing decrease in key interest rates and credit
securitisation.

The Bank's very prudent provisioning policy, particularly important in the
current economic context, led to increasing charges for provisions for loan
losses, from Euro 66.4 million in the last three months of 2002 to Euro 70.5
million in the first quarter of 2003, helping to maintain a high level of
provisioning coverage of past due loans.

Net commissions amounted to Euro 124.0 million in the first three months 2003,
compared to Euro 128.1 million in the previous quarter. This aggregate increased
by 2.0% if we exclude the items related to asset management and brokerage, which
were particularly affected by the weak capital markets. Commissions not related
to capital markets were boosted by increased fees from cards, credit operations,
leasing and factoring.

Net trading gains increased to Euro 18.8 million in the first quarter of 2003
from Euro 16.9 million in the last three months of 2002, in spite of the poor
performance of capital markets, reflected in the maintenance of low foreign
exchange and securities trading results.

Other net operating income totalled Euro 68.9 million in the first quarter of
2003, benefiting from higher recoveries of overdue loans and income from sundry
services to customers related to the domestic activity.


        OTHER INCOME       1st Quarter   1st Quarter   4th Quarter       Change
     (Millions of euros)       2003          2003          2002        2002-2003
                                         Pro forma(1)                  Pro forma
                                                                                                                     
  Net Commissions              135.7        124.0         128.1           -3.1%
  Trading Gains                 28.6         18.8          16.9           11.3%
  Other Net Operating Income(2) 74.6         68.9          75.1           -8.2%

(1) Includes Bank Millennium by the equity consolidation method, as applied in 
    2002.
(2) Excluding an additional provision charge of Euro 200 million.


Operating costs (staff costs, other administrative expenses and depreciation)
benefited from ongoing rationalisation, notably from the impact of an operating
efficiency programme that started being implemented in 2002. Consolidated
operating costs decreased 6.9% to Euro 362.4 million in the first three months
of 2003 from Euro 389.1 million in the last quarter of the previous year.

Staff costs amounted to Euro 193.5 million in the first three months of 2003,
5.1% down from Euro 203.8 million in the last quarter of 2002. This shows the
benefit from the decreased headcount and from lower pension fund charges
resulting thereof, notwithstanding the increase in salaries established by the
new Labour Agreement agreed with trade unions.

Other administrative expenses decreased by 8.0% to Euro 125.0 million in the
first quarter of 2003 from Euro 135.8 million in the last three months of 2002,
reflecting the benefits arising from the application of the operating efficiency
programme referred above.
                                                                                                
    OPERATING COSTS         1st Quarter   1st Quarter  4th Quarter      Change
   (Millions of euros)         2003          2003          2002        2002-2003
                                          Pro forma(1)                 Pro forma

Staff Costs                    218.5        193.5         203.8          -5.1%
Of which: domestic activity    166.2        166.2         175.6          -5.4%
Other Administrative Expenses  149.9        125.0         135.8          -8.0%
Of which: domestic activity    103.1        103.1         114.0          -9.5%
Depreciation                   50.9         43.9          49.5          -11.3%
Of which: domestic activity    32.7         32.7          37.7          -13.2%
Operating Costs                419.3        362.4         389.1          -6.9%
Of which: domestic activity    302.0        302.0         327.3          -7.7%
                                                                                                     
(1)Includes Bank Millennium by the equity consolidation method, as applied in 
2002. 

Loans to customers totalled Euro 45,803 million at March 31, 2003, rising by
0.8% from Euro 45,451 million at the end of the last quarter of 2002. The Bank
kept the efforts to limit its exposure to large risks, focusing in particular on
mortgage loans, up by 4.6% from December 31, 2002. Consumer loans decreased by
4.3%, while corporate loans stabilised over the same period.

Total customers' funds amounted to Euro 47,970 million at March 31, 2003, a 1.0%
increase from Euro 47,491 million the end of 2002, particularly outstanding in
the current economic environment. This performance was mainly attributable to a
5.9% increase in time deposits.

         ACTIVITY          31 Mar. 2003   31 Mar. 2003   31 Dec. 2002   Change
        INDICATORS                         Pro forma(1)               2002-2003
    (Millions of euros)                                               Pro forma

Total Assets                  66,239       62,232          61,852        0.6%
Loans to Customers            48,285       45,803          45,451        0.8%
Total Customers' Funds                                                 
- Deposits                    30,214       27,754          27,098        2.4%
- Assets under Management      9,038        9,038           9,229       -2.1%
- Capitalisation Insurance     6,539        6,539           6,451        1.4%
- Securities                   4,879        4,639           4,713       -1.6%
- Total                       50,670       47,970          47,491        1.0%

(1)Includes Bank Millennium by the equity consolidation method, as applied in 
   2002.
(2)Shareholders' Equity, Preference Shares and Subordinated Debt.

Credit quality remained at the same levels as seen at the end of 2002, with
loans overdue by more than 90 days accounting for 1.2% of total loans at both
March 31, 2003 and December 31, 2002. Coverage by provisions of loans overdue by
more than 90 days remained high, standing at 166.6% at March 31, 2003 (169.0% at
December 31, 2002).

    LOAN QUALITY INDICATORS                     31 Mar.     31 Mar.      31 Dec.
                                                 2003         2003        2002
                                                           Pro forma(1)
Loans overdue by more than 90 days/Total loans    1.7%        1.2%        1.2%
Provisions/ Loans overdue by more than 90 days    141.8%      166.6%      169.0%

(1)Includes Bank Millennium by the equity consolidation method, as applied in 
2002.



- End of announcement -



For further information:

 Miguel Duarte             Banco Comercial Portugues       Tel: [phone]
 Catriona Cockburn         Citigate Dewe Rogerson          Tel: [phone]


                           BANCO COMERCIAL PORTUGUES
            Consolidated Balance Sheet as at 31 March, 2003 and 2002

                                                                                                 
                                                              2003          2002
                                                            (Thousands of Euros) 
Assets                                                                          
Cash and deposits at central banks                         953,861     1,180,476
Loans and advances to credit institutions                                       
Repayable on demand                                        519,233       854,864
Other loans and advances                                 3,182,092     4,571,228
Loans and advances to customers                         48,285,176    43,432,703
Securities                                               4,494,074     4,378,962
Treasury stock                                                   -        24,217
Investments                                              2,527,133     2,686,713
Intangible assets                                          185,752       137,650
Tangible assets                                          1,268,915     1,184,873
Other debtors                                            1,903,573     1,079,834
Prepayments and accrued income                           2,919,339     2,521,135
                                                        66,239,148    62,052,655
Liabilities                                                                     
Amounts owed to credit institutions                                             
Repayable on demand                                        552,177       470,078
With agreed maturity date                               12,221,564    11,892,625
Amounts owed to customers                                                       
Repayable on demand                                     12,854,341    11,624,789
With agreed maturity date                               17,351,648    17,138,905
Debt securities                                         12,218,594    11,566,872
Other liabilities                                          692,443     1,068,631
Accruals and deferred income                             2,174,118     1,237,110
Provision for liabilities and charges                    1,046,942       890,649
Subordinated debt                                        3,115,019     2,827,802
Total Liabilities                                       62,226,846    58,717,461
Shareholders' Equity                                                            
Share capital                                            3,257,401     2,326,715
Mandatorly convertible notes                               528,207             -
Share premium                                              674,691       715,117
Reserves and retained earnings                         (1,993,492)   (1,073,800)
Total Shareholders' Equity                               2,466,807     1,968,032
Minority interests                                         352,471       141,035
Minority interests in preference shares                  1,193,024     1,226,127
Total Minority Interests                                 1,545,495     1,367,162
                                                        66,239,148    62,052,655



                            BANCO COMERCIAL PORTUGUES
                         Consolidated Statement of Income  
              for the three months ended 31 March, 2003 and 2002 

                                                                                                 
                                                             2003      2002
                                                         (Thousands of Euros) 

Interest income                                           795,502   753,787
Interest expense                                          431,490   421,076
Net interest income                                       364,012   332,711
Provision for loan losses                                  78,525    92,150
Net interest income after                                                  
provision for loan losses                                 285,487   240,561
Other operating income                                                     

Income from securities                                     11,713    41,102
Net commissions                                           135,721   125,482
Net income arising from trading activity                   28,600    43,685
Other income                                              110,381   137,882
                                                          286,415   348,151
Other operating expenses                                                   

Staff costs                                               218,523   182,810
Other administrative costs                                149,914   131,446
Depreciation                                               50,899    41,015
Other provisions                                          (5,957)       851
Other expenses                                             35,750    16,100
                                                          449,129   372,222
Income before income taxes                                122,773   216,490
Income taxes                                                8,805    22,521
Income after income tax                                   113,968   193,969
Minority interests                                         18,412    26,392
Net income for the period                                  95,556   167,577


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