190 EuroWeek Financing financial institutions Espirito Santo Financial Group Espirito Santo Financial Group Covered bonds Subordinated debt Senior unsecured Securitisation - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2005 2006 2007 2008 2009 2010 Source: Dealogic. Data to August 20 2010 $m Debt issuance Debt issuance Rank Lead Manager amount $m no of issues % share 1 Banco Espirito Santo 1,344 5 25.16 2 Credit Agricole CIB 718 3 13.45 3 JPMorgan 666 2 12.46 4 Deutsche Bank 382 2 7.15 5 UBS 372 1 6.96 5 Morgan Stanley 372 1 6.96 7 LBBW 296 1 5.55 7 HSBC 296 1 5.55 7 Bank of America Merrill Lynch 296 1 5.55 10 Credit Suisse 217 1 4.06 10 Citi 217 1 4.06 subtotal 5,178 6 96.91 total 5,343 6 100 Source: Dealogic (Sep 20, 2009 to Sep 19, 2010) - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021-2040 2041+ Source: Dealogic. Data to September 1, 2010 (securitisations not included) $m MatuRity PRofiLe toP bookRunneRs cfo Filipe Worsdell +44 20 7332 4350 [email protected] key contacts Actual tier one (2009) Benchmark scenario Adverse scenario Additional sovereign shock Source: Committee of European Banking Supervisors % 7 .7 9.2 7 .4 6.9 0 1 2 3 4 5 6 7 8 9 10 cebs stRess tests Source: Espirito Santo Financial Group € bn 83.5 84.0 84.5 85.0 85.5 86.0 86.5 87.0 87.5 88.0 88.5 Dec 31, 2009 Jun 30, 2010 totaL assets Source: Espirito Santo Financial Group % 0 2 4 6 8 10 12 14 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 caPitaL Ratios (bes) espirito santo financial Group sa Long term iDR bbb+ (negative outlook) short term iDR f2 support Rating 5 support Rating floor no floor summary: The IDRs and individual rating of Banco Espírito Santo (BES) reflect its strong domestic franchise, diversification by business and geography, healthy asset quality and sound capital adequacy. It also considers certain risk concentrations in the real estate and construction sectors, volatility in revenues from financial market operations and some refinancing risk. The Portuguese operating environment will remain challenging with competition increasing for customer resources as a result of the continued constraints in the international capital markets with long-term funding costs remaining high. This may exert some pressure on BES’s margins, although the impact of low interest rates on lending should be partly off-set by active negotiation of higher spreads. Further recovery in the financial markets should assist asset management and insurance-related savings activity and support fee income generation. Together with its strong domestic franchise and a further improvement in cost control, BES should maintain sound underlying profitability and have the flexibility to absorb further loan impairment charges. fitch RatinGs uPDate