Interim Results

Banco Comercial Portugues S.A.
24 July 2002



FOR IMMEDIATE RELEASE                                             JULY 24, 2002



                                BANCO COMERCIAL PORTUGUES ('BCP')

                  NET INCOME OF EURO 320.9 MILLION IN THE FIRST HALF OF 2002



(Warsaw, July 24, 2002): Banco Comercial Portugues (BCP, NYSE: BPC, BCPPRA)
today reported consolidated net income of Euro 320.9 million for the first half
of 2002, compared to Euro 353.8 million in the same period of 2001. Return on
equity stood at 32.1%, with return on assets at 1.1%.


                  PROFITABILITY                    1st Half      1st Half         Change

                   INDICATORS                          2002         2001         2002/2001

                   Net income                        320.87       353.75          -9.3%

                   (Millions of euros)
                   ROE                                32.1%        32.6%              -
                   ROA                                 1.1%         1.2%              -
                   ROA before minority interests       1.2%         1.3%              -



BCP's consolidated net income was assisted by continuing cost control efforts,
specifically in the domestic business. The evolution of bad debt levels is also
worth noting, particularly in the current economic climate, with the proportion
of overdue loans to total loans decreasing to 1.6% at June 30, 2002 from 1.7% at
the end of the first quarter of 2002.



The implementation of BCP's new commercial model, based on a specialised
approach to both the creation and distribution of financial products and
services, also had a positive effect. However, these favourable developments
were offset by the continuing poor economic conditions. Trading and commission
income were particularly affected, and credit provisions saw an increase, mainly
as a result of the provisioning of personally-guaranteed loans in accordance
with Regulation 7/2000 of the Bank of Portugal.



'During the first half of 2002 BCP's activity was significantly constrained by
the worsening domestic economic climate and by tough conditions in the global
financial markets. However, the Bank responded to this by reinforcing its
proactive commercial stance and by focusing on strict cost control and
maintaining credit quality. As a result, the loan growth (although moderate),
and higher interest margins and efficiency levels, have resulted in our
cash-flow increasing by more than 10% compared to the first half of 2001',
commented Mr. Jardim Goncalves, Chairman and CEO of BCP. He added:



'We have also focused on further developing the activity of our distribution
networks, through product innovation, organisational procedures and
technological solutions. This has already led to significant commercial gains in
the domestic business. An ambitious efficiency programme, aimed at achieving
sustained high levels of operational excellence, has also been set up. Its
results are expected to be seen in terms of superior profitability levels
throughout the remainder of 2002 and 2003'.



During the first half of 2002, under the process of rationalisation of
real-estate and in order to optimise capital allocation, the Bank booked capital
gains arising from the sale of premises to the Bank's pension fund. This
transaction compensated for the impact that decreasing returns on financial
assets had on the pension fund assets. Capital gains were in the same amount as
additional pension fund, market and credit risk provisions (Euro 85 million)
with the result that there was no impact from non-recurring transactions on
consolidated net income.



The Bank's increased shareholding in NovaBank and the fact that BCP became the
majority shareholder of Banco Internacional de Mocambique after having merged it
with Banco Comercial de Mocambique led to both these institutions being fully
consolidated from the end of 2001. As these interests were previously
consolidated using the proportional method, we have produced pro forma financial
statements for the first half of 2001, allowing a comparable basis with the
figures now presented for the same period of 2002.



Consolidated net interest income stood at Euro 644 million in the first six
months of 2002, compared to Euro 676 million in the same period of 2001 on a pro
forma basis. The main influences here were higher business volumes, with both
loans to customers and total customers' funds increasing from their June 30,
2001 level, and by the efforts to keep adequate interest spreads, with the net
interest margin increasing to 2.6% from 2.5% in the first half of 2001. However,
these effects were offset by the impact of credit securitisation.



The pursuance of a very prudent provisioning policy aimed at complying with
applicable legislation, but also based on an economic appraisal of risks, and
the application of Regulation 7/2000 of the Bank of Portugal, under which full
provisioning was required for loans overdue by more than 18 months collaterised
by personal guarantees, have led to a strong increase in provisions for credit
risks, to Euro 175 million in the first half of 2002 from Euro 106 million in
the same period of 2001, on a comparable basis.

Net commissions, which amounted to Euro 245 million in the first six months of
2002, remained at roughly the same level as the first half of 2001 (Euro 243
million, on a pro forma basis). The performance of debit and credit card fees
and the activity of the Group's investment banking operation, which lead-managed
a number of high-value transactions in the first quarter of 2002, were offset by
lower brokerage commissions resulting from the weakened capital markets. The
poor performance of financial markets also contributed to the 2.9% decrease in
trading gains, to Euro 74 million in the first half of 2002 from Euro 76 million
in the same period of 2001, on a comparable basis.



Other net operating income was influenced by a capital gain of Euro 85 million
on the sale of premises to the Bank's pension fund, following the Group's
strategy to optimise capital allocation and rationalise real-estate assigned to
operations. The fund's assets were reinforced, thus counterbalancing the
influence of the decrease of returns on financial assets. Net of this impact,
other net operating income increased 19.8% to Euro 159 million in the first six
months of 2002 from Euro 133 million in the first half of 2001, buoyed by higher
recoveries of overdue loans and by the strong performance of investment banking
income.



The lower contribution from equity accounted associates led to a 14.8% drop in
income from securities, to Euro 114 million in the first half of 2002 from Euro
134 million in the same period of the previous year. This reduction was mainly
attributable to a decreased contribution from Eureko, which itself was
influenced by the booking of non-recurring income in the first half of 2001 and
by the performance of capital markets.


                         OTHER INCOME                                 1st Half    1st Half  1st Half       Change
                        (Millions of euros)                              2002         2001      2001    2002/2001

                                                                                 Pro forma              Pro forma

                        Net Commissions                                 245.3        243.2     240.6         0.8%
                        Of which:
                        - Domestic activity                             221.6        223.3     223.3        -0.8%
                        Trading Gains                                    74.2         76.4      69.8        -2.9%
                        Of which:
                        - Domestic activity                              71.0         61.9      61.9        14.6%
                        Other Net Operating Income (1)                  158.9        132.6     132.8        19.8%
                        Of which:
                        - Domestic activity                             150.8        130.6     130.6        15.5%
                        Other Income /Total Income (1)
                        - Total                                         47.1%        46.4%     46.2%            -
                        - Domestic activity                             48.4%        47.2%     47.2%            -
(1) Excludes non-recurring transactions.



Operating costs (staff costs, other administrative expenses and depreciation)
totalled Euro 723 million in the first six months of 2002, up 3.0% from Euro 702
million pro forma in the first half of 2001. This increase was due to the
Group's operations outside Portugal, where there is a significant number of
recent and high-growth projects. The evolution of domestic operating costs on
the other hand benefited from continuing control and rationalisation efforts.

Staff costs totalled Euro 379 million in the first half of 2002, 1.9% up from
Euro 372 million in the same period of 2001, on a comparable basis. Domestic
staff costs, which amounted to Euro 324 million, roughly at the level of the
first six months of 2001 (Euro 326 million, pro forma), were affected by higher
pension fund contributions. The impact of non-domestic operations was
particularly clear in the evolution of other administrative expenses and
depreciation, which grew by 1.8% and by 13.1%, respectively. For the Group's
domestic business alone, other administrative expenses decreased by 2.9%, while
depreciation was 2.7% up.

                   OPERATING COSTS                       1st Half    1st Half    1st Half      Change

                 (Millions of euros)                         2002        2001        2001    2002/2001

                                                                     Pro forma               Pro forma

Staff Costs                                                 379.1       372.2       365.7        1.9%
Of which:
- Domestic activity                                         324.4       325.5       325.5       -0.4%
Other Administrative Expenses                               262.9       258.1       251.1        1.8%
Of which:
- Domestic activity                                         218.4       225.0       225.0       -2.9%
Depreciation                                                 81.4        72.0        69.4       13.1%
Of which:
- Domestic activity                                          61.8        60.2        60.2        2.7%
Operating Costs/ Total Income (1)
- Total                                                     57.6%       55.7%       55.1%           -
- Domestic activity                                         52.5%       52.5%       52.6%           -
    (1) Excludes non-recurring transactions.



Loans to customers rose by 6.8% on a comparable basis, totalling Euro 44,216
million at June 30, 2002 (Euro 41,394 million at the end of June, 2001). In
spite of the continuing harsh economic climate, loans to individuals grew at a
steep pace, with the Group's efforts to optimise risks resulting from the
acquisitions in 2000 explaining the more moderate growth in corporate loans.



Total customers' funds stood at Euro 48,774 million at the end of the first half
of 2002, a 5.4% increase from pro forma total customers' funds of Euro 46,265
million at June 30, 2001. This aggregate profited from the implementation of the
Group's new commercial model, and resulted from strong growth in capitalisation
insurance and securities, reflecting the Group's effectiveness in bancassurance
and in creating structured products for the retail market. Investors' greater
preference for low risk products and the competitiveness of the Group's offer
has resulted in an increase in balance sheet customers' funds. The performance
of assets under management, which maintained a level similar to June 30, 2001,
is also worth noting in the current economic conditions.


                 ACTIVITY                       30 Jun.      30 Jun.      30 Jun.        Change
                                                   2002         2001         2001
                INDICATORS                                 Pro forma                  2002/2001

            (Millions of euros)                                                       Pro forma
Total Assets (1)                                 60,796       61,954       61,274          -1.9%
Total Customers' Funds
- Balance Sheet                                  28,254       27,655       27,142           2.2%
- Assets under Management                         9,972        9,970        9,970           0.0%
- Capitalisation Insurance                        6,024        5,157        5,157          16.8%
- Securities                                      4,524        3,483        3,483          29.9%
- Total                                          48,774       46,265       45,752           5.4%
Loans to Customers (1)                           44,216       41,394       41,259           6.8%
Own Funds (2)                                     5,952        6,212        6,212          -4.2%
(1) Does not include securitised assets.

(2) Shareholders' Equity, Preference Shares and Subordinated Debt.



Loan quality benefited from continued prudence in analysing, granting,
monitoring and recovering credit, having improved from the first quarter of 2002
in spite of the maintenance of an unfavourable framework. At the end of the
first half of 2002, overdue loans accounted for 1.6% of total loans, compared to
1.7% at March 31, 2002 (1.5% at June 30, 2001, on a pro forma basis). Coverage
by provisions amounted to 137.1% (138.0% at the end of the first quarter of 2002
and 150.6% at June 30, 2001).


LOAN QUALITY INDICATORS (1)                                        30 Jun.     30 Jun.     30 Jun.
                                                                      2002        2001        2001

                                                                              Pro forma

Total overdue loans/Total loans                                       1.6%        1.5%        1.5%
Provisions/Total overdue loans                                      137.1%      150.6%      150.6%
(1) Does not include securitised loans.



Solvency indicators maintained adequate levels. The consolidated solvency ratio
stood at 9.8% at the end of June 2002, according to BIS principles, with tier
one amounting to 6.0%. In accordance with the ruling of the Bank of Portugal,
the consolidated solvency ratio was 8.8% at the end of the first half of 2002.



'During the first half of 2002, we have taken advantage of opportunities to
increase provisioning for credit risk, pension fund liabilities and unrealised
capital losses on investments.  Through this, we have aimed to further reinforce
BCP's asset structure, which we see as a fundamental pillar in the Group's
development, and a key confidence factor for BCP's shareholders', Mr. Jardim
Goncalves concluded.



                             -End of announcement-



For further information:

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


                                                 BANCO COMERCIAL PORTUGUES
                                     Consolidated Balance Sheet as at 30 June, 2002 and 2001 

                                                                     
                                                                      2002          2002         2001
                                                      (Millions of Escudos)     (Thousands of Euros) 

                                                                                                     
                   Assets                                                                            
                   Cash and deposits at central banks              253,578     1,264,840    1,039,259
                   Loans and advances to credit institutions                                         
                   Repayable on demand                             152,256       759,449    1,078,801
                   Other loans and advances                        695,709     3,470,180    5,952,022
                   Loans and advances to customers               8,864,560    44,216,241   42,931,002
                   Securities                                      836,480     4,172,345    4,883,813
                   Treasury stock                                    4,808        23,984        7,566
                   Investments                                     529,692     2,642,094    2,598,330
                   Intangible assets                                27,866       138,995      103,422
                   Tangible assets                                 235,622     1,175,280    1,257,561
                   Other debtors                                   162,386       809,978      932,483
                   Prepayments and accrued income                  425,495     2,122,358    2,161,774
                                                                12,188,452    60,795,744   62,946,033
                   Liabilities                                                                       
                   Amounts owed to credit institutions                                               
                   Repayable on demand                              86,052       429,226      459,192
                   With agreed maturity date                     2,198,479    10,965,966   15,943,261
                   Amounts owed to customers                                                         
                   Repayable on demand                           2,379,989    11,871,335   10,903,282
                   With agreed maturity date                     3,282,570    16,373,392   16,229,322
                   Debt securities                               2,428,546    12,113,536   10,079,201
                   Other liabilities                                87,849       438,190      292,569
                   Accruals and deferred income                    327,327     1,632,697    1,689,603
                   Provision for liabilities and charges           172,291       859,384    1,100,858
                   Subordinated debt                               577,924     2,882,675    2,748,622
                   Total Liabilities                            11,541,027    57,566,401   59,445,910
                   Shareholders' Equity                                                              
                   Share capital                                   466,464     2,326,715    2,326,715
                   Share premium                                   143,368       715,117      715,203
                   Reserves and retained earnings                (236,192)   (1,178,122)    (809,012)
                   Total Shareholders' Equity                      373,640     1,863,710    2,232,906
                   Minority interests                               32,146       160,341       36,310
                   Minority interests in preference shares         241,639     1,205,292    1,230,907
                   Total Minority Interests                        273,785     1,365,633    1,267,217
                                                                12,188,452    60,795,744   62,946,033


                                                      BANCO COMERCIAL PORTUGUES
                                                  Consolidated Statement of Income  
                                          for the six months ended 30 June, 2002 and 2001 

                                                                     
                                                                             2002        2002        2001
                                                            (Millions of Escudos)     (Thousands of Euros) 

                                                                                                         
               Interest income                                            299,232   1,492,564   1,721,360
               Interest expense                                           166,105     828,530   1,051,591
               Net interest income                                        133,127     664,034     669,769
               Provision for loan losses                                   35,032     174,739     104,889
               Net interest income after                                                                 
               provision for loan losses                                   98,095     489,295     564,880
               Other operating income                                                                    
               Income from securities                                      22,811     113,779     131,526
               Commissions                                                 57,897     288,791     278,896
               Profit arising from trading activity                        35,283     175,989     255,400
               Other income                                                56,141     280,030     166,351
                                                                          172,132     858,589     832,173
               Other operating expenses                                                                  
               Commissions                                                  8,728      43,536      38,272
               Losses arising from trading activity                        20,409     101,799     185,604
               Staff costs                                                 76,010     379,136     365,704
               Other administrative costs                                  52,703     262,879     251,074
               Depreciation                                                16,320      81,403      69,385
               Other provisions                                             8,614      42,966       2,961
               Other expenses                                               7,148      35,656      33,591
                                                                          189,932     947,375     946,591
               Income before income taxes                                  80,295     400,509     450,462
               Income taxes                                                 8,406      41,928      48,034
               Net income                                                  71,889     358,581     402,428
               Minority interests                                           7,560      37,708      48,675
               Net income for the period attributable to the Bank          64,329     320,873     353,753





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