banif finance, ltd.

The following table shows the capitalisation of Banif as at 30 June 2004:As atJun/20041111(in Euromillions)Short-term liabilities .................................................................................................................. 2,446.8Long-term liabilities.................................................................................................................... 357.1Stockholders’ equityShare Capital ................................................................................................................................ 240Reserves ........................................................................................................................................ 16.3Retained earnings.......................................................................................................................... 6.01111Total Stockholders’ equity ............................................................................................................ 262.3Total Capitalisation .................................................................................................................... 3,066.21111History and Organisation of the GroupThe former Banif – Banco Internacional do Funchal, S.A. (currently “Banif – SGPS, S.A.”) wasestablished in Funchal, Madeira, Portugal in January 1988, incorporating the assets and liabilities of CaixaEconómica do Funchal, which was founded in 1897.In the three years after 1998, the Group focused on consolidating its position in Madeira andimproving its financial condition. The Group extended its business portfolio by establishing a pension fundmanagement company in 1989, a leasing company (Banif Leasing (formerly Mundileasing)) in 1990 and aconsumer credit company (Banif Crédito (formerly Mundicre)) in 1991. In addition, the Group establishedtwo asset management subsidiaries, Banifundos (a Mutual Fund Management Company) and Banifólio (aportfolio management company, which is now merged into Banif – Banco de Investimento, S.A.), andacquired a brokerage company (Ascor Dealer) in 1994. The shares of Banif have been listed on the LisbonStock Exchange since November 1992. In 1993, Banif established Banif (Cayman) Ltd. as a wholly ownedsubsidiary in the Cayman Islands.Currently, the main business activities of the Group include banking (including commercial, private,investment, international and off-shore banking), insurance, leasing, specialised consumer credit, brokerage,and asset management and other activities. The Group is strongly involved in the cross-selling among itscompanies in order to better serve clients needs.BankingInsuranceLeasingConsumer CreditBrokerageAsset ManagementBanif – Banco Internacional do Funchal, S.A.Banco Comercial dos Açores, SABanif – Banco Internacional do Funchal (Cayman), LtdBanco Banif Primus, SABanif – Banco de Investimento, SACompanhia de Seguros Açoreana, SABanif Leasing, SA (leasing in Portugal)Banif Rent, SABanif Crédito – SFAC, SA (consumer credit in Portugal)Banif Primus Corretorra, SA (brokerage in Brasil)Banif Securities Inc. (brokerage in USA)Banif Gestão de Activos, SGFIM, SA (securities and real estate mutualfunds in Portugal)Banif Açor Pensões, SGFP, SA (pension fund management in Portugal)Banif Primus Asset Management, Lda (mutual funds in Brasil)56