Interim Results

Banco Comercial Portugues S.A.
22 July 2003



FOR IMMEDIATE RELEASE
JULY 22, 2003



                             BANCO COMERCIAL PORTUGUES ('BCP')

                     EARNINGS RELEASE FOR THE SECOND QUARTER OF 2003





•      Net income for the second quarter of 2003 at Euro 114.7 million, 20.0% up
from the previous quarter;



•      Successful cost controls led to improvement in domestic cost-income ratio
to 56.5% from 60.7% in the first quarter of 2003;



•      Seguros e Pensoes (consolidated by the equity method) makes a positive
contribution to consolidated net income;



•      Increased commission income boosted by fees from cards, operations on
securities and investment banking;



•      Outsourcing of part of the Group's IT infrastructure expected to strongly
reduce future IT costs and investments;



•      Focused growth of loans to customers. Special emphasis on mortgages:
loans up 4.9% from the end of March 2003, and market leadership in terms of new
business during the quarter;



•      Reinforced provisions for loan losses and maintenance of high credit
quality: loans overdue by more than 90 days at 1.6% of total loans and coverage
by provisions at 145.2%;



•      BCP Investimento considered by Euromoney one of the best investment banks
operating in Portugal four years in a row, this time taking the award for 'Best
Domestic Securities Firm in Portugal';



•      Leadership in internet banking:



-           cidadebcp leads domestic online financial services, according to
market surveys by Marktest, and is considered the best financial site in
Portugal by the PC Guia magazine, for the second consecutive year;



-           2003 edition of the 'World's Best Internet Banks' awards, granted by
Global Finance: managerland considered the Best Corporate/Institutional Internet
Bank in Portugal and the Best Corporate/Institutional Integrated Site in Europe.
ActivoBank7 winner of the European awards for Best Consumer Online Securities
Trading and Best Consumer Web Site Design.




The consolidated net income of Banco Comercial Portugues amounted to Euro 114.7
million in the second quarter of 2003, up 20.0% from Euro 95.6 million in the
previous quarter. Consolidated net income for the first half of 2003 totalled
Euro 210.2 million, compared to Euro 320.9 million in the same period of 2002.
Return on equity stood at 18.2%, with return on assets standing at 0.7%.

                 PROFITABILITY                   2nd Quarter    1st Quarter        Change
                   INDICATORS                    2003           2003              1Q03-2Q03

Net income                                       114.7           95.6              20.0%
(Millions of euros)
ROE                                               18.2%          17.9%                -
ROA                                                0.7%           0.6%                -
ROA before minority interests                      0.8%           0.7%                -



'The 20% increase in our quarterly earnings reflects the rebound in Seguros e
Pensoes' results and our efforts to improve the Bank's profitability, aimed at
the preservation of interest margins - compensating the continuing decrease in
interest rates through a focused loan growth, with the emphasis on mortgages
reflected in the Group's leadership of the Portuguese market, in terms of new
mortgage loans - and at boosting commissions, as well as concentrating on the
continued implementation of cost rationalisation initiatives, both domestically
and abroad', commented Mr. Jardim Goncalves, BCP's Chairman and CEO, with regard
to BCP's consolidated earnings performance during the second quarter of 2003.

'The acquisition of Seguros e Pensoes at the end of March 2003 has made a
positive contribution to consolidated earnings, reflecting the substantial
progress of the programmes aimed at reducing Seguros e Pensoes' exposure to
market risks and at decreasing its costs and improving its operating
performance. We were also able to take advantage of the significant capital and
extraordinary gains resulting from the more positive performance of capital
markets over the last months to reinforce the Bank's provisions for loan losses,
thus increasing provision coverage of past due loans.'

Net interest income increased to Euro 367.3 million in the second quarter of
2003 from Euro 364.0 million in the previous quarter. This performance was
mainly attributable to a higher volume of interest-earning assets stemming from
increased business. This offset the impact of credit securitisation. It was also
helped by the fact that BCP was able to restrict the decrease in net interest
margin, down from 2.8% in the first quarter of 2003 to 2.7% in the second
quarter, to less than that of the key market interest rates. Net interest income
also benefited from the impact of BCP's share capital increase at the end of
March 2003.

The Bank's prudent provisioning policy, aimed at keeping high coverage of past
due loans, and the strengthening of provisions to take advantage of significant
market gains during the quarter, resulted in an increase in charges to
provisions for loan losses to Euro 113.1 million in the second quarter of 2003
from Euro 78.5 million in the first quarter.

The steep increase in income from securities, to Euro 65.5 million in the second
quarter of 2003 from Euro 11.7 million in the previous quarter, resulted from
the appropriation of Seguros e Pensoes' net income from March 31 and from the
booking of dividends from the Group's investments in EDP, Intesa and Friends
Provident.

Net commissions totalled Euro 143.1 million, compared to Euro 135.7 million in
the first quarter of 2003, and were boosted by continuing efforts to optimise
pricing. The performance of income from cards and from operations on securities
stood out, the latter being influenced by the impact of BCP's share capital
increase. Commissions from investment banking are also worth mentioning. The
expertise of the BCP Group in this business is demonstrated by the fact that BCP
Investimento is, for the fourth consecutive year, considered by Euromoney to be
one of the best investment banks operating in Portugal, taking the award for the
Best Domestic Securities Firm.

Whilst still maintaining a prudent approach to market risks, the Bank was able
to take advantage of increased volatility in euro and US dollar interest rates
in the second quarter, mainly in long maturities.  This resulted in an increase
in net trading income to Euro 37.1 million from Euro 28.6 million in the first
quarter of 2003.

Other net operating income totalled Euro 81.3 million in the second quarter of
2003 (Euro 74.6 million in the first quarter of 2003), benefiting from increased
cross-selling related income.

                      OTHER INCOME                        2nd Quarter  1st Quarter      Change
                   (Millions of euros)                    2003         2003            1Q03-2Q03

Net Commissions                                          143.1        135.7              5.5%
Trading Gains                                             37.1         28.6             29.8%
Other Net Operating Income                                81.3         74.6              9.0%



Operating costs (staff costs, other administrative expenses and depreciation)
amounted to Euro 419.1 million, roughly unchanged from Euro 419.3 million in the
first quarter of 2003. Domestic cost-income ratio improved to 56.5% from 60.7%
in the first three months of 2003. Operating costs benefited from the
implementation of the operating efficiency programme started in 2002 and from
staff downsizing measures. Part of the Group's IT infrastructure was outsourced
for a 10-year period, and this is expected to have a significant positive impact
on efficiency and on IT-related investments and costs.

Operating costs continued to be affected by increased expenses relating to the
expansion of the Group's activity abroad. Banque Privee BCP started its
operations in Switzerland, and NovaBank's business expanded both in Greece and
in Turkey.

Staff costs totalled Euro 216.8 million in the second quarter of 2003, compared
to Euro 218.5 million in the previous quarter. The increase in domestic staff
costs resulted from the integration of staff from Seguros e Pensoes into
ServiBanca and from the increase in salaries established by the new Labour
Agreement agreed with trade unions.

Other administrative expenses stood at Euro 151.0 million (149.9 million in the
first quarter of 2003) and were affected by increased advertising and
outsourcing expenses.

                       OPERATING COSTS                             2nd Quarter  1st Quarter      Change
                     (Millions of euros)                              2003         2003        1Q03-2Q03

Staff Costs                                                           216.8        218.5          -0.8%
Of which: domestic activity                                           170.0        166.2           2.3%
Other Administrative Expenses                                         151.0        149.9           0.7%
Of which: domestic activity                                           104.7        103.1           1.5%
Depreciation                                                           51.3         50.9           0.7%
Of which: domestic activity                                            33.4         32.7           2.0%
Operating Costs                                                       419.1        419.3           0.0%
Of which: domestic activity                                           308.1        302.0           2.0%



Loans to customers totalled Euro 48,526 million at June 30, 2003 and Euro 48,285
million at the end of the first quarter of 2003. The Bank maintained its efforts
to limit exposure to large risks and focused on mortgage loans, up to Euro
12,573 million from Euro 11,981 million at March 31, 2003. The BCP Group led the
Portuguese mortgage market in terms of new loans granted during the quarter.

Total customers' funds amounted to Euro 50,399 million at June 30, 2003,
compared to Euro 50,670 million at March 31. Securities showed a strong
performance, up 14.5% from the end of the first quarter, reflecting the transfer
of customers' savings from other instruments. Assets under management and
capitalisation insurance have also increased.

                    ACTIVITY                      30 Jun. 2003    31 Mar. 2003       Change
                   INDICATORS                                                    Mar. 03-Jun. 03
               (Millions of euros)
Total Assets                                            65,496         66,239           -1.1%
Loans to Customers                                      48,526         48,285            0.5%
Total Customers' Funds
- Deposits                                              29,048         30,214           -3.9%
- Assets under Management                                9,159          9,038            1.3%
- Capitalisation Insurance                               6,604          6,539            1.0%
- Securities                                             5,588          4,879           14.5%
- Total                                                 50,399         50,670           -0.5%



Credit quality improved from the end of the first quarter of 2003, a
particularly outstanding performance given current economic conditions. Loans
overdue by more than 90 days accounted for 1.6% of total loans, while provision
coverage reached 145.2% (1.7% and 141.8%, respectively, at March 31, 2003).

                       LOAN QUALITY INDICATORS                         30 Jun. 2003  31 Mar. 2003

Loans overdue by more than 90 days/Total loans                                  1.6%          1.7%
Provisions/ Loans overdue by more than 90 days                                145.2%        141.8%




Solvency was maintained at roughly the levels seen at the end of the first
quarter, after capital strengthened significantly as a result of the
capital-raising operations that took place in 2002 and in the first quarter of
2003. The consolidated solvency ratio stood at 10.7% at June 30, 2003 according
to the rules of the Bank of Portugal, and at 11.6% according to BIS principles
(Tier One of 7.2%).

                REGULATORY CAPITAL (BIS)                 30 Jun. 2003   31 Mar. 2003      Change
                  (Millions of euros)                                                 Mar. 03-Jun. 03
Tier One Capital
- 'Core'                                                        2,669         2,665            0.1%
- Preference Shares                                             1,169         1,193           -2.0%
- Total                                                         3,838         3,858           -0.5%
Tier Two Capital
- Debt                                                          2,960         3,043           -2.7%
- Deductions                                                    (599)         (569)            5.2%
- Total                                                         2,361         2,474           -4.6%
Total Regulatory Capital                                        6,199         6,332           -2.1%
Risk Weighted Assets                                           53,632        53,038            1.1%
Ratios
- Tier One                                                       7.2%          7.3%               -
- Tier Two                                                       4.4%          4.6%               -
- Total                                                         11.6%         11.9%               -



In the first half of 2003, the BCP Group, through cidadebcp, became the
undisputed domestic leader in online financial services. This leadership was
confirmed by external entities such as Marktest and the PC Guia magazine, which
considered cidadebcp the best financial site in Portugal the second year in a
row. Three years after it started operating, cidadebcp reached 714,000
registered customers, 300,000 of which are registered to use SMS banking
services. At the end of June 2003 cidadebcp launched a specific service for
PDAs, making it a European reference in terms of mobile financial services.

In July, the Group's internet banking businesses received four Global Finance
awards, three of which were on a European level. In the 2003 edition of the '
World's Best Internet Banks' awards, managerland was considered the Best
Corporate/Institutional Internet Bank in Portugal and the Best Corporate/
Institutional Integrated Site in Europe. ActivoBank7 won the European awards for
Best Consumer Online Securities Trading and Best Consumer Web Site Design.

Commenting on BCP's operations abroad, Mr. Jardim Goncalves stated: 'NovaBank's
activity in Greece continues its dynamic progress with its business expanding
into the Private Banking and Corporate segments. This follows its focus on high
net-worth individuals, the success of which is demonstrated by the increase of
business indicators, and also reflected in the improvement to its profit and
loss account'. He ended with a reference to the BCP Group's activity in Poland:
'In spite of the significant impact on earnings arising from the fact that Bank
Millennium ceased to consolidate PZU, an insurance company, using the equity
method, the benefits stemming from the cost reduction programme currently under
way are already visible. Bank Millennium continues to follow an organic growth
strategy, focused on selective loan growth and on capturing customers' funds.'





                        BANCO COMERCIAL PORTUGUES 
           Consolidated Balance Sheet as at 30 June, 2003 and 2002 

                                                                                                    
                                                                                 2003          2002 
                                                                       (Thousands of Euros)         
                    Assets                                                                          
                    Cash and deposits at central banks                         986,329     1,264,840
                    Loans and advances to credit institutions                                       
                    Repayable on demand                                        656,135       759,449
                    Other loans and advances                                 2,535,875     3,470,180
                    Loans and advances to customers                         48,526,209    44,216,241
                    Securities                                               4,421,944     4,172,345
                    Treasury stock                                                   -        23,984
                    Investments                                              2,537,500     2,642,094
                    Intangible assets                                          179,493       138,995
                    Tangible assets                                          1,242,206     1,175,280
                    Other debtors                                            1,176,729       809,978
                    Prepayments and accrued income                           3,233,351     2,122,358

                                                                            65,495,771    60,795,744

                    Liabilities                                                                     
                    Amounts owed to credit institutions                                             
                    Repayable on demand                                        211,504       429,226
                    With agreed maturity date                               12,137,616    10,965,966
                    Amounts owed to customers                                                       
                    Repayable on demand                                     11,918,307    11,871,335
                    With agreed maturity date                               17,122,304    16,373,392
                    Debt securities                                         12,896,379    12,113,536
                    Other liabilities                                          554,901       438,190
                    Accruals and deferred income                             2,675,163     1,632,697
                    Provision for liabilities and charges                    1,013,928       859,384
                    Subordinated debt                                        2,910,913     2,882,675

                    Total Liabilities                                       61,441,015    57,566,401

                    Shareholders' Equity                                                            
                    Share capital                                            3,257,401     2,326,715
                    Mandatorly convertible notes                               528,207             -
                    Share premium                                              674,229       715,117
                    Reserves and retained earnings                         (1,920,223)   (1,178,122)

                    Total Shareholders' Equity                               2,539,614     1,863,710

                    Minority interests                                         345,752       160,341
                    Minority interests in preference shares                  1,169,390     1,205,292

                    Total Minority Interests                                 1,515,142     1,365,633

                                                                            65,495,771    60,795,744


                               BANCO COMERCIAL PORTUGUES 
                           Consolidated Statement of Income  
                    for the three months ended 30 June, 2003 and 2002 

                                                                                                   
                                                                                  2003        2002 
                                                                       (Thousands of Euros)        
                      Interest income                                         1,571,438   1,492,564
                      Interest expense                                          840,106     828,530

                      Net interest income                                       731,332     664,034
                      Provision for loan losses                                 211,679     174,739

                      Net interest income after                                                    
                      provision for loan losses                                 519,653     489,295
                      Other operating income                                                       
                                                                                                   
                      Income from securities                                     77,233     113,779
                      Net commissions                                           278,846     245,255
                      Net income arising from trading activity                   65,714      74,190
                      Other income                                              226,368     280,030

                                                                                648,161     713,254
                                                                                                   
                      Other operating expenses                                                     
                                                                                                   
                      Staff costs                                               435,387     379,136
                      Other administrative costs                                300,922     262,879
                      Depreciation                                              102,169      81,403
                      Other provisions                                          (4,673)      42,966
                      Other expenses                                             70,425      35,656

                                                                                904,230     802,040

                      Income before income taxes                                263,584     400,509
                      Income taxes                                               20,402      41,928

                      Income after income tax                                   243,182     358,581

                      Minority interests                                         32,964      37,708

                      Net income for the period                                 210,218     320,873
 
  





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