1H2025 Results

30 Jul 2025

Caixa Geral de Depósitos releases its 1H2025 consolidated results

(unaudited accounts)

Business volume grows by €9 billion in Portugal, driven by increases in the loan portfolio and savings inflows across various client segments. Capital ratios remain above 20% after the €850 million dividend payment in May, the highest ever. After
S&P’s upgrade of CGD, DBRS also raises rating to “A”.

CGD achieves net income of €893 million, demonstrating resilience amid interest rate environment

In the first half of 2025, CGD achieved a Net Income of €893 million, similar to the same period last year (+€4 million), benefiting from a €9 billion increase in business volume and a lower-risk balance sheet
Net Interest Income fell by 10% year-on-year, stabilising the decline seen in the first quarter in a context of falling interest rates
In 2025, as in the previous two years, CGD kept its pricing unchanged and applied exemptions to various operations in Portugal, resulting in an increase of only 0.4% in commission income, below the 5% growth in Business Volume
Consolidated business volume reached €169 billion, driven by €9 billion growth in Portugal, compared to June 2024
In the first half of the year, the Customer Loan Portfolio increased by approximately €2.3 billion, reflecting robust growth in both the Corporate and Institutional segment (€1.0 billion) and the Individual segment (€1.3 billion), of which around €1.2 billion was in Mortgage Loans and approximately €100 million in Consumer Credit
New mortgage lending reached €2.6 billion in the half-year, exceeding the same period last year by over €1 billion, a 63% increase
Recurring Cost-to-Income ratio stood at 29%
Provisions and impairments for credit risk decreased by €4 million, while other provisions fell by €138 million, influenced by the €127 million reinforcement in 2024 related to the pension fund transfer compensation mechanism
The €850 million dividend, paid in May 2025, was the highest ever, bringing total dividends distributed since 2017 to €3.35 billion

Strong commercial dynamics contributed to CGD’s leadership in digital channels, card services and the SME Líder 2024
statutes

In Portugal, digital transactions grew by 8%, reaching a total of 475 million, of which only 1.2% were carried out in branches. This
growth was driven by the increase in the number of mobile banking clients, which now exceeds 2 million
For the first time, CGD was the bank with the highest number of SME Leader 2024 statutes awarded. A total of 3,881 companies
supported by CGD were recognised, a 52% increase over the previous programme, reflecting growing preference among businesses for CGD’s support
CGD maintained its leadership in the card business, issuing over 100,000 more cards compared to June 2024, bringing the total
number of active bank cards to 4.8 million
CGD is the fastest-growing traditional banking brand globally in terms of brand value, and the third fastest-growing overall (+163%). It is the most valuable banking brand in Portugal and ranks 116th internationally

S&P and DBRS upgraded CGD’s rating, consolidating its position in the “A” category

In July, DBRS upgraded the rating to “A”, highlighting the effectiveness of CGD’s restructuring
In March, S&P Global Ratings raised the long-term rating to “A”, matching the rating of the Portuguese Republic. The short-term rating was upgraded to “A-1”, the highest in that category
Moody’s assigned an intrinsic rating of “a3”, the highest among Portuguese banks Prudential ratios remain above 20% following the historic €850 million dividend payment
Capital ratios of 20.9% (CET1) and 21.0% (Total) include net income for the period, net of the 2024 dividend (€850 million) and the payout calculated for the first half of 2025
CGD has generated €6.85 billion in organic capital since the recapitalisation, equivalent to 1.7 times the amount received from the shareholder
CGD is once again the only Portuguese bank included in The Banker magazine’s 2025 list of the world’s Top 200 banks by Tier 1 capital, ranking in 190th position

Asset quality improves, further de-risking the balance sheet

NPL ratio at historic lows: 1.47% in the first half of 2025, driven by the sustained reduction in overdue credit and the orientation of new lending towards the highest risk ratings
Credit risk cost at -0.32%, reflecting improved credit quality and a more favourable macroeconomic outlook
Exposure to non-core assets – NPLs, real estate, and restructuring funds – reduced by €84 million in the half-year

CGD maintains social support measures while making an active contribution to sustainable development

MSCI ESG Ratings upgraded CGD to “AA”, placing it in the leadership tier
The 7th edition of the “Caixa Mais Mundo Awards” supported 600 higher education students, reflecting an increase in both the
number and value of scholarships compared to previous editions
CGD was recognised in the “Europe’s Climate Leaders 2025” list as one of 600 companies leading the fight against climate
change (Financial Times and Statista)

Disclaimer

The financial statements have been prepared based on the International Financial Reporting Standards (IFRS) as adopted in the European Union in accordance with Regulation (EC) No. 1606/2002 of the European Council and of the Parliament of July 19 and provisions of Decree-Law No. 35/2005 of February 17. The financial information reported is unaudited.
The financial metrics in this presentation refer to June 30, 2025, unless otherwise stated. They may be estimated values, subject to change when they are definitively determined. Solvency ratios include the net income for the period, excluding the dividend for the year 2024 (850 M€) and the payout calculated for the first half of 2025.
The USA announced the implementation of a set of tariffs on products imported from several countries. The tariffs imposed by the USA and the reciprocal measures already announced by the affected countries will have significant impacts on the world economy, on the structure and functioning of global trade relations and, consequently, on the financial sector in particular. Although negotiations are still ongoing between the USA and the affected countries, in addition to the significant volatility already being seen in the capital and financial markets, it is reasonable to expect a cross-cutting increase in prices, a reduction in international trade with the consequent global economic recession and a change in the monetary policies of the main central banks, translated into additional and faster interest rate cuts, to mitigate the expected negative effects.
Considering this scenario and taking into account the best information available on this date, it is the understanding of the Board of Directors that Caixa Geral de Depósitos is adequately prepared in terms of capital and liquidity to absorb any negative impacts arising from the new global economic framework that may arise and to maintain the necessary support to its customers and the national economy.
This document is only intended to provide general information and does not constitute investment advice or professional advice, nor can it be interpreted as such.
This document is an English translation of the Portuguese language document “Resultados Consolidados 1S 2025”. In the event of any inconsistency, the original version prevails.

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1H2025 Results

Caixa Geral de Depósitos releases its 1H2025 consolidated results

(unaudited accounts)