Espírito Santo Financial Group S.A. Unaudited Consolidated Results for the Nine Months Ending 30 September 2009

LUXEMBOURG/PORTUGAL--(BUSINESS WIRE)--Espírito Santo Financial Group S.A. (‘ESFG’ or the ‘Company’) (NYSE Euronext Lisbon: ESF; Bloomberg: ESF PL; Reuters: ESF LS) today announces its un-audited consolidated results for 9M09. The report is compiled under International Financial Reporting Standards as implemented by the EU.

HIGHLIGHTS FOR THE REPORTING PERIOD¹

• Consolidated 9M09 Net Income reached EUR 101.3 million (EUR 65.8 million), a year-on-year increase of 53.9% and corresponds to an annualised return on equity of 11.85%;
• Consolidated Net Interest Income increased by 20.3% year-on-year to EUR 976.5 million (EUR 811.6 million) on the back of significant contributions from both Portuguese and international business;
• Consolidated Net Fees and Commissions rose by 12.3% year-on-year to EUR 530.8 million (EUR 472.5 million) benefiting from ESFG’s strategy of supporting international trade activities;
• Consolidated Market Results² rose to EUR 219.6 million (EUR 135.2 million) on the back of strong financial results at BES.
• Consolidated Insurance Earned Premiums Net of Reinsurance decreased 10.1% year-on-year to EUR 232.6 million (EUR 258.7 million) reflecting continuing competitive pressure in the Portuguese market;
• Consolidated Claims Incurred Net of Reinsurance decreased by 10.0% year-on-year to EUR 172.4 million (EUR 191.6 million) as improvements to claims’ management take effect;
• Consolidated Staff Costs and General Administrative Expenses increased moderately by 2.3% to EUR 865.0 million (EUR 845.6 million). Excluding pension charges, staff costs were down year-on-year resulting from strict cost management programmes at banking and insurance levels;

CONFERENCE CALL

A conference call for investors and analysts will be held today at 3pm (GMT)/4pm (CET)/ 10am (EST). An instant replay of the call will be available for two weeks. For details, contact Devina Artley at Taylor Rafferty on telephone number [phone].

I. MACRO ECONOMIC ENVIRONMENT

Following a very positive performance in the financial markets in the second quarter, the third quarter saw the translation of this momentum into positive economic signs in the world economy. The strong fiscal and monetary stimuli buoyed demand, which impacted favourably on production activity and international trade flows. It is believed that the United States and the Euro Area registered positive GDP growth in the quarter, 4.0% and 0.5% respectively, after between four and five quarters of negative performance

The rebound of activity in these economies continued to see no inflationary pressures, while the strong liquidity injections made by the main central banks led to a slide in market interest rates. In the Euro Area, the 3-month Euribor dropped from 1.099% to 0.753%, while the yield on 10-year government bonds dropped from 3.386% to 3.22%.

The growth recovery, combined with low interest rates, created a favourable environment for the equity and credit markets. In the United States, the Dow Jones, Nasdaq and S&P500 indices all showed quarterly gains of around 15.0%, while in the Euro Area the DAX, CAC40 and IBEX were up by 18.0%, 20.9% and 20.1%, respectively. In Brazil, the Bovespa index rose by 19.5%. Credit spreads, though higher than pre-crisis levels, continued to narrow (the iTraxx Financials index, which tracks the spreads on Credit Default Swaps, fell by 40 basis points). The historically low level of interest rates and the increase in the dollar supply through the Federal Reserve’s numerous interventions continued to place pressure on the US currency, in particular with those of certain emerging economies. In the third quarter the dollar lost 9.6% against the Real, dropping to USD/BRL 1.766, reflecting increased demand for Brazilian assets and the return of investors to the country (with expectations of further strength in the Brazilian economy). The Euro advanced by 4.2% against the dollar, to EUR/USD 1.464.

Following a 0.3% increase in GDP in the second quarter, the Portuguese economy continued to benefit in the third quarter from the recovery of external demand, the stabilisation of private consumption and an increase in household savings. Financial conditions also maintained an improving trend: credit spreads declined and the PSI-20 index rose by 19.2%.

II. INCOME STATEMENT SUMMARY

(EUR Thousands)	9M08	9M09	Change YoY
+ Net Interest Income	811 646	976 461	20.3%
+ Net Fees and Commissions	472 513	530 803	12.3%
= Banking Income	1 284 159	1 507 264	9.7%
+ Capital Markets Results	135 226	219 609	62.4%
+ Insurance Earned Premiums Net of Reinsurance	258 647	232 593	(10.1%)
= Operating Income	1 983 845	2 235 261	12.7%
- Operating Expenses	1 618 307	1 785 284	10.3%
= Profit before Tax (inc. Gains from Financial Investments & Share of profit of Associates)	408 760	473 090	15.7%
- Tax	70 879	84 206	18.8%
- Minority Interests	272 085	287 625	5.7%
= Net Income	65 796	101 259	53.9%

III. OVERVIEW OF OPERATIONS

ESFG’s un-audited consolidated net profit for the first nine months of 2009, attributable to equity holders of the Company rose by 53.9% year-on-year to EUR 101.3 million, and corresponds to an annualised return on equity (ROE) of 11.85%.

Despite the adverse, but improving, economic environment the Company posted a strong performance in top line business with consolidated Net Interest Income and consolidated Net Fees and Commissions both up when compared to the same period in 2008. Consolidated Market Results and Other Results rose by 52.2% to EUR 671.1 million on the back of strong financial results at BES and continued growth in the health care unit.

Operating expenses rose 10.3% year-on-year due to an increase in loan impairments at the banking level. Consolidated staff costs and administrative expenses rose by 2.3% which was dependent on the growth of pension costs due to the amortisation of actuarial differences resulting from the depreciation of fund assets.

Consolidated results were positively impacted by a 20.3% increase in Net Interest Income, when compared to the same period in 2008, with a healthy contribution from both the domestic and international banking operations. Net Fees and Commissions rose by 12.3% year-on-year on the back of dynamic growth in documentary credit (in the support international trade), guarantees, commissions on loans and bancassurance. Fees originating from securities business and asset management remain under pressure; however there have been clear signs of improvement given the recovery in equity and credit markets.

At ESFG’s principal banking subsidiary, Banco Espírito Santo (BES), performance remains strong both domestically and internationally. BES’ net income for 9M09 reached EUR 360.8 million, up 7.8% from 9M08’s result of EUR 334.8 million, which corresponds to an annualised ROE of 9.4%. The results reflect a sound strategy of internationalisation in the support of Portuguese companies abroad and have permitted the diversification of the Bank’s revenue sources. Tight control of operating costs and a prudent financial and risk management complete the strategy of stable growth.

Initiatives aimed at attracting higher value-added clients resulted in 88,000 new domestic retail clients since the beginning of the year and 97,000 when including the international units. The branch network of 734 units in Portugal includes 40 on-site branches working in partnership with Tranquilidade’s insurance agents under the assurfinance programme. The branch network rises to 797 when the 63 international branches are included to the total. Total customer funds grew by 7.2% year on year with on balance sheet funds down by 0.8%. Highly selective credit growth however translated into a reduction in the loans portfolio of 4.2%. Stringent credit risk management policies contributed to a substantial improvement in credit impairment at the retail banking level, down by 64.4% year on year.

On balance sheet corporate client funds rose by 28.5% year-on-year, with loans up by 6.6% backed by a strict lending policy. Initiatives taken by BES continue to support the corporate sector during these difficult times.

The growth in BES’ international operations continues to make strong contributions to net income, particularly towards Net Interest Income. Non-Portuguese net income at BES grew by 3.4% to EUR 126.9 million which represents 35.2% of the bank’s net earnings.

Notwithstanding the positive performance of the bank’s international activities credit provisions of the units abroad also increased from EUR 39.5 million in Q308 to EUR116.5 million in Q309. The most notable rises were in Spain and the United Kingdom. Angola, the United Kingdom and Brazil remain the greatest contributors to the bank’s profitability outside of Portugal. BES’ domestic business contribution remains strong at EUR 233.9 million, a rise of 10.3% year on year.

In the context of the global economic down-turn there has been a deterioration of the overdue loan ratios at BES. The associated provisioning charges rose to 1.03% (Q308 0.57%) translating into a charge in provisions of EUR 462.7 million which includes an extra ordinary provision of EUR 40.0 million set to strengthen the war chest in this recessionary period. The credit provisioning charge in Q309 at BES represented 0.85% of the loan portfolio (excluding the extraordinary provision). Impairments in certain investments in securities lead to the recognition of losses in the amount of EUR 37.5 million (EUR 27.9 million in Q308). Overall asset quality remains resilient; however the global crisis has had an impact on the level of overdue loans globally. Overdue loans of over 90 days at BES grew by 51.0 basis points to 1.56% from 1.05% a year earlier. Overdue loan coverage of over 90 days dropped from 223.4% to 186.4% during the same period.

ESFG’s other banking interests namely, Banque Privée Espírito Santo (BPES), ES Bankers (Dubai) Ltd. (ESBD) and Banque Espírito Santo et de la Vénétie (BESV) continue to make positive contributions to net income.

BPES, ESFG’s Swiss banking operations, reported strong results in the first nine months of 2009. Assets under management (AuM) rose by CHF 403.0 million to CHF 5.3 billion since year-end 2008. The recovery in AuM at BPES was driven by the more positive tone of the financial markets, an increase in net new money and the strength of the EUR and USD versus the CHF. BPES reported a net income of CHF 6.0 million up 19.5% quarter on quarter reflecting a rise in transaction based revenues and strict cost management. Operating expenses have remained stable when compared with the same period in 2008.

ESBD, reported robust growth despite a weak economic back drop. As of September 2009 the bank’s total assets reached USD 93.58 million, a year on year increase of 46.6%. Assets under Management continue to grow strongly; the bank reported a figure of USD 1,259.5 million versus USD 503.2 million in September 2008. ESFG’s Dubai operations, focusing on private banking activities reported strong growth in brokerage, investment advisory and portfolio management.

Banking Income at the Paris based operations BESV fell by 15.6% as commercial banking contributions slowed due to increased funding costs. The cost to income ratio at BESV in September 2009 reached 55.9% with operating costs up by 17.0% year on year as the bank embarks on a rejuvenation programme.

In late September ESFG announced that it had increased its stake in Saxo Bank S/A (Saxo Bank) to approximately 5.0% through the exchange of a 25.0% stake in Banco Electrónico de Serviço Total (Banco BEST). Banco BEST, in partnership with Saxo Bank, is expected to expand on its asset management and online securities trading platform. The completion of the transaction is subject to certain regulatory and other approvals.

ESFG’s Insurance business also made positive contributions to consolidated results despite the stagnant Portuguese Non-Life market. Competition amongst its peers remains strong in both the property and casualty markets. Average gross written premiums, as reported by the Portuguese Association of Insurers (APS) decreased 4.8% in the non-life market and 6.8% in the life market. However, life premium growth at T-Vida remains strong with the assurfinance programme bolstering performance. The T-Vida premiums grew by 53.7% during the period. Claims incurred net of reinsurance continue to fall as improvements to claims management take full effect.

The assurfinance programme continued to make an effective input to the retail client base at BES with the addition of 18,600 new clients and 8,700 credit cards (T-Card) issued.

Performance at ESFG’s healthcare operator, Espírito Santo Saúde (ESS), reported a 13.6% year on year rise in operating income from EUR 140.0 million to EUR 159.1 million. In the third quarter operating income increased by EUR 52.1 million. The growth was attributable to all units at ESS but principally due to units located in the Lisbon area, primarily at Hospital da Luz where operating income rose by 26.0% year-on-year.

IV. PRINCIPAL ITEM ANALYSIS

Despite a period of very low interest rates coupled with a slow down in lending activity , consolidated Net Interest Income (NII) grew by 20.3% year-on-year to EUR 976.5 million (EUR 811.6 million) on the back of the volume and price driven growth effect. The 3-month Euribor rates fell from 2.892% in December 2008 to 0.753% at the end of September 2009. The rise in Net Interest Income is attributable to positive contributions from all banking interests of ESFG.

The Net Interest Margin at BES reached 1.89%, up by 19 basis points from Q308 and was influenced by the asset versus liability repricing mismatch and the bank’s policy of updating credit spreads as a function of the deterioration of risk and the liquidity shortage. Net Interest Income at BES from areas outside Portugal continues to make an effective contribution, with the overall international NII contribution rising 52.4% year-on-year compared to a rise of 13.1% for the domestic business.

Consolidated Fees and Commissions (Net of Expenses) increased by 12.3% year-on-year to EUR 530.8 million (EUR 472.5 million). The dynamic growth seen in previous quarters has continued with documentary credit, at BES, benefiting from ESFG’s strategy of supporting international trade and strong increases in guarantees and commissions on loans rising 91.7% year on year. Fees originating from the securities business and asset management fell slightly over the reporting period but the more positive mood by investors has given some support to the activity. Bancassurance grew by 15.8% reflecting a continued effort to renew customer interest in new products namely retirement related products.

Core Tier 1 solvency. On 28 April 2009, the Bank of Portugal approved ESFG’s request for the use of IRB (Internal Ratings Based) method for calculation of the minimum core capital requirements to cover credit risk. This authorisation covers ESFG and its subsidiaries Banco Espírito Santo and Banco Espírito Santo de Investimento and their respective subsidiaries. ESFG’s capital ratios reported to the Bank of Portugal, under the IRB Foundation are: Core Tier 1 7.1% and Tier 1 8.2%. ESFG’s recently completed EUR 400 million Lower Tier II deal serves to further bolster the Company’s total solvency level by an expected 80 basis points. Improvements in potential gains in the consolidated Available for Sale (AFS) portfolio during Q309 are expected to further improve Core Tier I levels at ESFG.

Following the EUR 1.2 billion capital increase at BES in April of this year, in which ESFG fully participated, the bank reported an extremely solid solvency position. Core Tier I at 8.2% and Tier I to 8.8%, placing BES among the most well capitalised banks in Iberia. The AFS portfolio recovered, showing a potential gain of EUR 291.0 million.

Consolidated Insurance Earned Premiums Net of Reinsurance fell by 10.1% to EUR 232.6 million compared to EUR 258.6 million for the same period of 2008. Consolidated Claims Incurred Net of Reinsurance also declined, EUR 172.4 million compared to EUR 191.6 million a year earlier, a fall of 10.0%. Tranquilidade, ESFG’s fully owned Non-life insurance subsidiary reported a year on year increase in individual net results to EUR 2.6 million (EUR 1.9 million in 9M08), operating costs fell during the period. T-Vida, the life insurance business, reported improved individual results for the same period of EUR 3.6 million (EUR -2.4 million in 9M08).

Tranquilidade reported a 9.0% decrease in gross written premiums primarily due to a fall in motor premiums. This performance reflects an improvement quarter-on-quarter, in the second quarter gross written premiums decreased by 11.7%. The high churn ratio and tariff decreases reflect the weak Portuguese market environment. Several measures targeted at improving retention levels for the most profitable segments have been put in place with encouraging results. As predicted, Tranquilidade has improved its churn rates significantly in the third quarter of 2009. Health products at Tranquilidade continued to show an above average market growth.

Expense costs at Tranquilidade decreased by 4.8% when compared to the same period in 2008 highlighting the positive effects of the on-going cost reduction programme. However, the expense ratio increased to 31.9% (30.8% in 9M08) as gross written premiums fell. Despite strong competition within the sector, given improvements in claims management and no major fire related claims during the period, the direct insurance claims’ ratio decreased from 67.9% in 9M08 to 60.5% in 9M09.

T-Vida reported a EUR 3.6 million net income in 9M09 (EUR -2.4 9M08). The positive performance was due to technical results, a successful programme of expense reduction which resulted in a 40.4% decrease in costs during the period and positive financial results.

LOGO reached 60,727 new clients, a year on year rise of 219.0%, and achieved gross written premiums of EUR 8.0 million in 9M09. The number of clients and premiums are above budget. Net results remain negative, however, but remain 10.0% above the direct insurance unit’s forecast.

AdvanceCare (in partnership with United Health Care), ESFG’s managed care platform for healthcare insurers, continues to provide good results. Revenue increased by 5.7% in 9M09 and income reached EUR 1.9 million.

Consolidated Capital Markets totalled EUR 219.6 million for the first nine months of 2009, from EUR 135.2 million reported in 9M08. Capital market activities are principally held at BES whose strategy and performance was supported by the maintenance of positions in interest rate instruments and by the overall recovery in credit and equity markets.

Operating Income at Espírito Santo Saúde (ESS) rose by 13.6% when compared to the same reporting period in 2008. ESFG’s private healthcare provider owns and operates a total of 17 hospitals, out-patient clinics, residential hospitals, senior care residencies as well as participating in the Public-Private Partnerships (PPP) programmes in Portugal. ESS looks forward to further consolidation of its activities at its hospital operations most notably at Hospital da Luz.

Hospital da Arrábida and Cliria saw their performance in line with the same period a year earlier with income up by 0.0% and 4.0% respectively due to capacity constraints in both units. In September, however, an additional 11,000 m² of operation space was opened at Hospital Arrábida permitting the unit to increase its contribution to consolidated results. Cliria has concluded the acquisition of Clínica Central de Oiã, a clinic located in the Aveiro area of Portugal, reinforcing the healthcare operator’s presence in this region. The acquisition has also been approved by the regulating authorities. Positive results were also reported in operations in the north and central regions of Portugal. On the 10 September the Portuguese Finance and Health Ministers formally recognised ESS’ successful bid for the Loures Public Hospital tender under the PPP programme. ESS is expected to conclude the final management contract by year end.

Consolidated Staff Costs and General Administrative Expenses increased by 2.3% to a level of EUR 865.0 million from EUR 845.6 million in 9M09. The 8.3% increase in staff costs resulted from the growth of pension costs and reflects BES’ amortization of the depreciation of funds during the turbulent period permitted by the Bank of Portugal. Excluding pension charges both staff costs and total operating costs were down year-on-year as strict cost management policies take full effect.

Other Operating Expenses remained relatively unchanged for the first nine months of 2009, falling only 0.5% to EUR 174.4 million from EUR 175.2 million in 9M08. ESS remains the principal driver to these expenses.

V. DEVELOPMENTS DURING 9M09 AND SUBSEQUENT EVENTS

On 19 January 2009, ESFG sold 5.0% of the capital of ES Bankers (Dubai), the remaining 95.0% stake remains with ESFG.

On 6 April 2009, Moody’s announced it had downgraded ESFG’s rating to A2 from A1 as well as placing all Portuguese banks on review for a possible downgrade. ESFG joined the list of banks on review for a potential further downgrade. On the 16 September 2009 Moody’s announced the downgrade of ESFG’s issuer rating to A3 from A2. ESFG’s short term rating and preferred securities were also downgraded to P-2 and Baa2 respectively.

ESFG subscribed to its full entitlement in BES’ recent EUR 1.2 billion capital increase which was concluded on 16 April 2009.

On 24 April 2009, following the Annual General Meeting held in Luxembourg, it was confirmed that a dividend of EUR 0.30 per share would be paid on 25 May 2009. It was also announced that its shares would become ex-dividend on 4 May 2009.

On 30 April 2009, ESFG announced the Bank of Portugal’s approval of the Company’s request for the use of IRB (Internal Ratings Based) method. The Portuguese central bank’s decision came into effect on 31 March 2009. ESFG, through its subsidiaries in Portugal, became the first institution to receive approval from the Bank of Portugal for the use of the IRB Foundation method.

On 26 May 2009, ESFG announced the launch of EUR 150 million ESFIL – Espírito Santo Financière S.A. senior 2-year notes. The transaction is guaranteed by ESFG.

On 22 July 2009, Espírito Santo Saúde announced it had received the final evaluation report relating to the new Loures Public Hospital tender under the PPP programme placing it in first place.

On 23 July 2009, Fitch rating confirmed Tranquilidade’s A- rating; however Fitch Rating moved the fully owned subsidiary from stable outlook to negative outlook.

On 10 August 2009, ESFG announced the launch of its EUR 1.0 billion STEP compliant Euro Commercial Paper programme. The joint ESFG and ESFIL programme is rated P-2 by Moody’s and F-2 by Fitch Rating.

On the 15 September 2009 ESFG sold a 25.0% stake in Banco Best (BEST) to Saxo Bank S/A (Saxo Bank) in exchange for an additional 2.5% stake in Saxo Bank. This move raises ESFG’s stake to approximately 5.0%. The completion of the transaction is subject to certain regulatory and other approvals.

On the 14 October 2009 ESFG announced that it had successfully launched and priced its inaugural EUR 400 million Lower Tier II transaction. The subordinated notes will mature on the 21 October 2019 and is rated Baa1 by Moody’s Investor Service, Inc. and BBB+ by Fitch Ratings Limited.

CONTACTS

Espirito Santo Financial Group	Taylor Rafferty
Filipe Worsdell	Faisal Kanth
[phone]	[phone]
[e-mail]	[e-mail]

___________________________________________

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, Stock-brokerage, Asset management and Health Care business 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

CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2009 AND 31 DECEMBER 2008
	(in thousands of euros)
	30-09-2009	31-12-2008
	Unaudited	Audited
Assets
Cash and deposits at central banks	1 309 937	2 044 923
Deposits with banks	854 277	884 501
Financial assets held for trading	3 875 638	3 693 305
Financial assets at fair value through profit or loss	2 432 629	2 502 876
Available-for-sale financial assets	8 355 202	7 605 669
Loans and advances to banks	7 008 023	3 547 479
Loans and advances to customers	49 870 668	49 176 608
Held to maturity investments	2 568 506	2 170 055
Hedging derivatives	385 819	936 290
Non-current assets held for sale	326 291	148 372
Property and equipment	1 015 452	962 897
Investment properties	89 522	89 817
Intangible assets	358 922	355 008
Investments in associates	398 152	264 156
Technical reserves of reinsurance ceded	53 805	52 239
Current income tax assets	63 726	54 293
Deferred income tax assets	113 610	182 419
Other assets	5 072 700	3 478 666
Total assets	84 152 879	78 149 573
Liabilities
Deposits from central banks	3 320 012	4 810 458
Financial liabilities held for trading	1 640 056	1 930 905
Deposits from banks	8 138 363	8 101 915
Due to customers	24 884 281	26 367 772
Debt securities issued	32 601 788	25 307 119
Hedging derivatives	286 090	727 475
Investment contracts	419 825	400 597
Non-current liabilities held for sale	63 451	12 827
Provisions	163 672	145 132
Technical reserves of direct insurance	1 001 998	1 012 487
Current income tax liabilities	109 002	114 446
Deferred income tax liabilities	79 242	42 165
Subordinated debt	2 710 113	2 836 529
Other liabilities	2 313 093	1 509 891
Total liabilities	77 730 986	73 319 718
Equity
Share capital	778 549	778 549
Share premium	253 656	253 656
Preference shares	395 514	395 514
Other equity components	115 171	115 171
Fair value reserve	41 487	( 115 485)
Other reserves and retained earnings	( 209 323)	( 221 776)
Profit for the period	101 259	77 061
Total equity attributable to equity holders of the company	1 476 313	1 282 690
Minority interests	4 945 580	3 547 165
Total equity	6 421 893	4 829 855
Total equity and liabilities	84 152 879	78 149 573

CONSOLIDATED INCOME STATEMENT
FOR THE NINE MONTH PERIODS ENDED 30 SEPTEMBER 2009 AND 2008
	(in thousands of euros)
	30-09-2009	31-12-2008
	Unaudited	Unaudited
Interest and similar income	3 070 845	3 647 263
Interest expense and similar charges	2 094 384	2 835 617
Net interest income	976 461	811 646
Dividend income	68 053	75 796
Fee and commission income	608 986	559 129
Fee and commission expenses	78 183	86 616
Net (losses)/gains from financial assets at fair value through profit or loss	( 5 523)	( 72 698)
Net gains from available-for-sale financial assets	92 019	253 004
Net gains from foreign exchange differences	33 788	( 45 080)
Net gains from the sale of other financial assets	( 18 316)	-
Insurance earned premiums net of reinsurance	232 593	258 647
Other operating income	325 383	230 017
Operating profit	2 235 261	1 983 845
Staff costs	532 260	491 412
General and administrative expenses	332 732	354 157
Claims incurred net of reinsurance	172 380	191 580
Change on the technical reserves net of reinsurance	( 4 664)	3 527
Insurance commissions	26 087	28 856
Depreciations and amortisation	91 956	80 078
Provisions net of reversals	23 273	32 782
Loans impairment net of reversals and recoveries	370 231	189 581
Impairment on other financial assets net of reversals	37 626	58 436
Impairment on other assets net of reversals	28 979	12 668
Other operating expenses	174 424	175 230
Operating expenses	1 785 284	1 618 307
Gains from the sale of financial investments	-	33 764
Share of profit of associates	23 113	9 458
Profit before income tax	473 090	408 760
Income tax
Current tax	101 031	75 917
Deferred tax	( 16 825)	( 5 038)
	84 206	70 879
Profit for the year	388 884	337 881
Attributable to equity holders of the company	101 259	65 796
Attributable to minority interest	287 625	272 085
	388 884	337 881

¹ A year-on-year comparison of the key indicators is provided. Figures in parentheses following the operational and financial results for 2009 refer to the same item in 2008

² Aggregate of Net Gains/Losses from Financial Assets at Fair Value through Profit and Loss, Net Gains on Available for Sale Financial Assets, Net Gains from Foreign Exchange Differences and Net Gains/Losses from the Sale of Other Assets