EOS: Espirito Santo Fin: ON-SITE INSPECTIONS PROGRAMME ON EXPOSURE TO THE CONSTRUCTION AND REAL ESTATE SECTORS UK Regulatory Announcement LUXEMBOURG/PORTUGAL Société Anonyme Registered Office: 21/25 Allée Scheffer, L- 2520 Luxembourg R.C.S. Luxembourg B 22.232 ESPÍRITO SANTO FINANCIAL GROUP ANNOUNCES RESULTS OF THE ON-SITE INSPECTIONS PROGRAMME ON EXPOSURE TO THE CONSTRUCTION AND REAL ESTATE SECTORS. Luxembourg/Portugal – 4 December 2012 - Espírito Santo Financial Group S.A. (‘ESFG’ or ‘Group ESFG’) (NYSE Euronext Lisbon: ESF; Bloomberg: ESF PL; Reuters: ESF LS) today announces the results of the inspections on exposure to the Construction and Real Estate sectors. GROUP ESFG The On-Site Inspections Programme (‘OIP’), which was concluded on 29 November 2012, involved the evaluation of exposure to the Portuguese and Spanish construction and real estate sectors as of 30 June 2012. The OIP involved the 8 largest banking groups in Portugal, including Espírito Santo Financial Group S.A. (‘Group ESFG’), and had the objective of evaluating the adequacy for impairments on exposure to the aforementioned sectors, as of 30 June 2012 (the reference date), based on conservative evaluation criteria. At Group ESFG it was concluded that there was a need to further strengthen provisions for impairments by EUR 205.0 million, which represents approximately 1.9% of evaluated exposure. Of the EUR 205.0 million, EUR 127 million relate to information and events that were subsequent to the reference date, including more recent insolvencies and bankruptcies and the revaluation of collateral. This has been illustrated on the left hand side of the chart (Fig I.) Fig I. [OBJECT OMITTED] As of 30 September 2012 Group ESFG had succeeded in strengthening its provisions for impairments and thus reduced its need for further provisioning from EUR 205.0 million to EUR 98.0 million. The remaining requirement will be concluded by 31 December 2012, as illustrated on the right hand side of the chart (Fig I.). Taking into account the expected impairment charges planned by Group ESFG for the 4th quarter 2012, the impact of the results from the OIP on the Group’s Core Tier 1, as of 31 December 2012, will be negligible. The reinforcement of provisions will not affect Group ESFG’s ability to meet the minimum regulatory requirement of 10.0% by year end. Additionally, the OIP requirement for additional provisioning does not materially alter the burden of provisioning for impairments on credit planned by Group ESFG for the financial year ending 31 December 2012. Contacts: Espírito Santo Financial Group S.A. Filipe Worsdell, +44 203 429 2100 email@example.com or Taylor Rafferty Faisal Kanth, +44 207 614 2900 firstname.lastname@example.org ### The Espírito Santo Financial Group provides, through its subsidiaries, a global and diversified range of financial services to its clients including Commercial banking, Insurance, Investment banking, Stockbrokerage and Asset management in Portugal and internationally. For additional information on Espírito Santo Financial Group, its subsidiaries, operations and results, please visit the Company’s website on www.esfg.com Contact: Espirito Santo Fin
EOS: Espirito Santo Fin: ON-SITE INSPECTIONS PROGRAMME ON EXPOSURE TO THE CONSTRUCTION AND REAL ESTATE SECTORS
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