banco nacional ultramarino annual report 2020

Banco Nacional Ultramarino

ANNUAL REPORT

2020

1 BNU

BNU ANNUAL REPORT 2020

Contents

1 – WHO WE ARE .............................................................................................................. 3

2 –HIGHLIGHTS.................................................................................................................. 4

3 – FINANCIAL OVERVIEW .................................................................................................. 7

3.1 – BALANCE SHEET ................................................................................................................... 7

3.2 – INCOME STATEMENT ............................................................................................................ 9

3.3 - RATIOS ...............................................................................................................................13

4 – ACTIVITY OVERVIEW .................................................................................................. 14

4.1 - RETAIL AND PRIVATE BANKING .............................................................................................14

4.1.1 RETAIL BANKING .................................................................................................................14

4.1.2 - PRIVATE BANKING ............................................................................................................15

4.2 - CORPORATE BANKING..........................................................................................................15

4.2.1 - DCOR1 .............................................................................................................................15

4.2.2 - DCOR2 .............................................................................................................................16

4.2.3 - DCORL ..............................................................................................................................16

4.3 - HENGQIN BRANCH ...............................................................................................................17

4.4 - TREASURY ...........................................................................................................................17

4.5 - CARDS CENTER DIVISION (CRECA) .........................................................................................17

4.6 - PHONE AND ONLINE BANKING (Call Centre) ...........................................................................18

4.7 - CREDIT RECOVERY AREA .......................................................................................................19

4.8 - INTERNAL CONTROL .............................................................................................................19

4.8.1 - COMPLIANCE ....................................................................................................................20

4.8.2 - RISK MANAGEMENT ..........................................................................................................20

4.8.3 - INTERNAL AUDIT ...............................................................................................................28

4.9 - CREDIT RISK DIVISION ..........................................................................................................29

4.10 - OPERATIONAL SUPPORT DIVISION ......................................................................................30

4.11 - PROCUREMENT .................................................................................................................31

4.12 - HUMAN RESOURCES ..........................................................................................................32

4.13 - ORGANIZATION AND PROCEDURES .....................................................................................32

4.14 - IT SYSTEMS ........................................................................................................................33

4.15 - MARKETING & PUBLIC RELATIONS .......................................................................................33

4.16 - FINANCIAL CONTROL AND CORPORATE DEVELOPMENT DIVISION ..........................................36

4.17 ARCHIVING AND SCANNING .................................................................................................38

5 – ENVIRONMENT, SOCIAL AND GOVERNANCE ................................................................ 39

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5.1 ENVIRONMENT......................................................................................................................39

5.2 SOCIAL ..................................................................................................................................43

5.2.1 CUSTOMERS .......................................................................................................................44

5.2.2 EMPLOYEES ........................................................................................................................45

5.2.3 COMMUNITY SUPPORT .......................................................................................................49

5.2.4 SHAREHOLDERS ..................................................................................................................53

5.2.5 SUPPLIERS ..........................................................................................................................53

5.3 GOVERNANCE .......................................................................................................................53

6 – Corporate governance ................................................................................................ 55

6.1 – Top Management ................................................................................................................55

6.1.1 CADMI – Board of Directors (Conselho de Administração) ......................................................56

6.1.2. CEXEC – Executive Committee (Comissão Executiva) .............................................................57

6.1.3. CACI – Audit And Internal Control Commission (Comissão de Auditoria e Controlo Interno) ......59

6.1.4. CRISC – Risk Commission (Comissão de Risco) .......................................................................64

6.1.5. ALCO – Asset and Liability Committee..................................................................................66

6.1.6. CCRED – Credit Committee (Comissão de Crédito) .................................................................70

6.1.7. CBSC – Cybersecurity Committee .........................................................................................71

6.1.8. ROCI – Operational Risk & Internal Control Committee (Risco Operacional & Controlo Interno) 72

6.1.9. CSQC – Customer Service Quality Committee .......................................................................74

6.1.10. RECO – Remuneration Commission (Comissão de Remunerações) ........................................75

7 – GOVERNING AND AUDITING BODIES ........................................................................... 81

8 – FINANCIAL STATEMENTS ............................................................................................ 83

9 – SHAREHOLDERS WITH QUALIFIED HOLDINGS ............................................................... 86

10 – EQUITY INVESTMENTS .............................................................................................. 87

11 – SIGNIFICANT ACCOUNTING POLICIES ......................................................................... 88

12 – SIGNIFICANT ACCOUNTING ESTIMATES ..................................................................... 97

13 – AUDITORS’ REPORT .................................................................................................. 98

14 – OPINION OF THE SOLE SUPERVISOR .......................................................................... 99

15 – MOST IMPORTANT ADDRESSES ............................................................................... 100

3 BNU


1 – WHO WE ARE

Banco Nacional Ultramarino, S.A. (“BNU” or “the Bank”) is a limited liability company by shares

incorporated in Macao Special Administrative Region (“Macao SAR”, “Macao” or “Macau”) and a licensed

bank authorized under the laws of Macau SAR.

The sole ultimate shareholder of the Bank is Caixa Geral de Depósitos, S.A., a Portuguese state-owned

bank (“CGD”). CGD is the largest bank in Portugal in terms of assets. At the 2020 year-end, it had a

commercial network in Portugal that included 511 active branches, 13 self-service branches, 25

“corporate offices” with 4 additional local extensions and 3 mobile units. The CGD Group integrating

Branches, Subsidiaries and Representative Offices has also a strong international presence especially in

the Portuguese Speaking Countries (PSCs).

BNU was established in 1902. It is a commercial bank and is one of the two banks responsible for issuing

bank notes in Macao.

The Bank carries out its main activity in Macau, where it has a network of twenty branches. BNU has also

a branch in Hengqin, the main vehicle of the Bank to participate in the development of the Greater Bay

Area and to take advantage of its business opportunities, and a representative office in Shanghai.

Taking also advantage of the CGD Group presence in the PSCs, the Bank continues to position itself to be

the preferred partner of companies in these countries that want to develop business with China.

4 BNU


2 –HIGHLIGHTS

Macroeconomic Environment

The Gross Domestic Product (“GDP”) of Macao decreased by 56.3% in real terms in 2020 impacted by the

strong decline of exports of services and by the decrease of the investment and private consumption

expenditures.

Due to the Covid-19 pandemic and the restrictions in entries, the number of visitors’ arrivals in Macao

reached only 5.9 million in 2020, decreasing by 85% in relation to 2019. There was therefore a sharp

reduction of the gaming and tourism revenues, the main drivers of the Macao economy, which decreased

by 79.3% and 81.4% respectively in 2020.

The general unemployment rate was 2.7% at the end of 2020 (1.7% at the end of 2019), remaining low by

international standards moreover amidst the global pandemic scenario. The inflation rate was 0.81% in

2020, a decrease compared to 2019 (2.75%).

BNU’s Highlights

The financial performance of the Bank was inevitably affected by the Covid-19 outbreak and its adverse

effect in the global and Macao’s economies. The speed of the economic deterioration that unfolded led

many central banks to quickly cut their reference interest rates reaching around zero in all advanced

economies, with the consequent decrease of interest rates worldwide and in Macao, reducing BNU’s

interest income. The decreased levels of economic activity all over the world and in Macao also reduced

the number and volume of our customer’s transactions and had also a negative impact in other revenue.

BNU’s gross credit reached MOP 26,805.9 Million at the end of 2020, an increase of 10.6% year-on-year,

driven by the growth of credit to large companies and of housing loans.

Customers’ deposits decreased slightly (3.2%) due to the decrease of deposits from corporations, because

of their reduced revenues. Retail deposits increased though, evidencing once more the trust of our

customers in BNU and their recognition as a bank operating for their benefit and support.

In this context, the loan-to-deposit ratio increased from 66.1% at the end of 2019 to 74.8% at the end of

2020.

The ratio of overdue (˃ 90 days) loans to total credit, already low, decreased further to 1.05%.

5 BNU


In spite of the increase of the credit, net interest income decreased by MOP 66.6 Million (7.6%) due to

the effect of lower interest rates. Non-interest income decreased too by MOP 131.2 Million (34.6%),

impacted by the reduced level of customer activity.

Total overheads increased slightly by 1.7%, due to increases in depreciations (as the Bank continued to

invest in technology) and in staff costs to enable the Bank to attract and retain talent in a still highly

competitive labour market.

General provision charges increased due to the growth of the credit granted. In spite of the decrease of

the overdue loans ratio, the Bank, bearing in mind the worldwide impact of Covid-19 and adopting a

prudent forward-looking approach, decided to increase the specific provision charges.

As a result, the net profit of the Bank was down by 33.7% to MOP 420.3 Million.

The solvency ratio remained at a robust level: 20.3% at the end of 2020.

The Covid-19 pandemic has severally affected the world we live in. In these challenging times, the first

priority of BNU was and remains the safety of our customers, employees and the public in general, but

the Bank has also been committed to help businesses and individuals to deal with the economic recession

that followed.

The Bank continued to invest in innovation and in the development of new products and services with a

strong focus on the digitalization of products and processes and will continue to acknowledge the

significant increase in digital engagement from our customers, which has even accelerated after the Covid-

19 outbreak, and act proactively accordingly.

BNU thinks and acts with a long-term perspective dedicated to create value to all its stakeholders in a

sustainable way. Our commitment to responsible banking and to Environmental, Social and Governance

(ESG) issues is detailed in the ESG part of this Annual Report.

6 BNU


BNU at a glance in figures

271,568

Customers

20 Branches in Macau

&

1 Branch in Hengqin

500

Full time/permanent

employees

MOP 26,806 MM

Gross Credit

MOP 35,838 MM

Deposits

MOP 420.3 MM

Net Profit

20.3%

Solvency Ratio

8.2%

Return on Equity Ratio

41.9%

Cost-to-Income Ratio

7 BNU


3 – FINANCIAL OVERVIEW

3.1 – BALANCE SHEET

Credit to Customers

Gross Credit granted to customers increased 10.6% year-on-year.

This increase was mainly due to the growth of outstanding loans and advances to corporate customers,

driven either by the utilisation of previously existing credit facilities or by new loans, and the growth of

mortgage loans.

Consumer credit decreased reflecting lower levels of consumer transactions and probably a more

prudential attitude towards spending.

Total %

Cash 2,192.8 1,704.2 (488.6) -22.3%

Deposits with AMCM 669.6 685.2 15.6 2.3%

Certificates of indebtedness issued by the Macau government 9,377.0 10,490.2 1,113.2 11.9%

Cheques and others due for collection 71.0 56.4 (14.6) -20.6%

Demand deposits with credit institutions 715.5 437.0 (278.5) -38.9%

Placements and call and time deposits with credit institutions 12,554.7 9,856.0 (2,698.7) -21.5%

Credit granted (net) 24,137.1 26,725.7 2,588.6 10.7%

Investments in debt securities 5,507.9 4,312.7 (1,195.2) -21.7%

Debtors/Accounts receivable 171.8 153.5 (18.3) -10.7%

Financial investments 8.9 8.9 - 0.0%

Property, equipment and other fixed assets 1,992.6 1,964.8 (27.8) -1.4%

Internal and adjustment accounts & other current assets 179.9 147.1 (32.8) -18.2%

TOTAL ASSETS 57,578.8 56,541.7 (1,037.1) -1.8%

Bank notes in circulation 9,813.0 10,660.0 847.0 8.6%

Customer deposits 28,675.1 27,767.7 (907.4) -3.2%

Government deposits 8,003.4 8,069.9 66.5 0.8%

Amounts due to credit institutions 2,619.1 1,759.0 (860.1) -32.8%

Cheques and Payment orders payable 27.6 26.6 (1.0) -3.6%

Creditors 94.4 170.0 75.6 80.1%

Internal and adjustment accounts & other liabilities 529.4 386.8 (142.6) -26.9%

Provisions for risks 264.8 290.6 25.8 9.7%

TOTAL LIABILITIES 50,026.8 49,130.6 (896.2) -1.8%

Share Capital 2,000.0 2,000.0 - 0.0%

Reserves 4,917.6 4,990.8 73.2 1.5%

Net profit for the period 634.4 420.3 (214.1) -33.7%

TOTAL EQUITY 7,552.0 7,411.1 (140.9) -1.9%

TOTAL LIABILITIES + EQUITY 57,578.8 56,541.7 (1,037.1) -1.8%

Balance Sheet 2019 2020Change

MOP Million

Total %

Gross credit granted 24,234.0 26,805.9 2,571.9 10.6%

Specific provisions (96.9) (80.2) 16.7 -17.2%

Net credit 24,137.1 26,725.7 2,588.6 10.7%

2019 2020Change

MOP Million

8 BNU


Credit Quality

There was a reduction in the overdue credit (loans and advances to customers overdue, i.e., unpaid, for

more than 90 days). This factor, combined with the increase in credit, led to a reduction of the ratio of

overdue (> 90 days) credit in relation to the total of gross credit to 1.05%, a figure which compares very

favourably with the average in the banking industry.

Customers and Government Deposits

Deposits from customers decreased slightly by 3.2% year-on-year.

This decrease was due to the reduction of the deposits from the corporate segment (larger companies)

strongly impacted by the decrease of their revenues.

Retail deposits (personal and SMEs) continued to grow, confirming once more the trust of these

customers in BNU as a Bank directed to the retail market and operating for their benefit.

Loan-to-Deposit Ratio

The net loan-to deposit ratio increased to 74.6% (65.8% at the end of 2019) as a result of the credit growth.

Total %

Overdue credit (> 90 days) 345.8 283.0 (62.8) -18.2%

Gross credit 24,234.0 26,805.9 2,571.9 10.6%

Overdue credit/Gross credit 1.42% 1.05% -0.37% -26.1%

MOP Million

2019 2020Change

Total %

Deposits from customers (exclusive of government) 28,675.1 27,767.7 (907.4) -3.2%

Government deposits 8,003.4 8,069.9 66.5 0.8%

Total Deposits 36,678.5 35,837.6 (840.9) -2.3%

MOP Million

2019 2020Change

74.60%

65.80%

2020

2019

9 BNU


Debt Securities Portfolio

The debt securities portfolio, the only item under “shares, bonds and equity”, decreased by 21.7% to MOP

4,312.7 Million. The issuers are governments, investment grade rated banks or gaming concessionaires.

Shareholders’ Equity

Solvency Ratio

The solvency ratio1 remained high (20.3%) well above the minimum requirement of 8%.

3.2 – INCOME STATEMENT

1 Calculated as per the guidelines of Macao Monetary Authority (AMCM).

Total %

Share capital 2,000.0 2,000.0 - 0.0%

Other reserves 4,917.6 4,990.8 73.2 1.5%

Net profit for the year 634.4 420.3 (214.1) -33.7%

Total shareholder’s equity 7,552.0 7,411.1 (140.9) -1.9%

MOP Million

2019 2020Change

Total %

Income from credit operations 1,204.1 1,017.2 (186.9) -15.5%

Cost of credit operations (332.8) (212.5) 120.3 -36.1%

Net interest income 871.3 804.7 (66.6) -7.6%

Income from banking services 313.8 200.4 (113.4) -36.1%

Income from other banking services 63.5 41.5 (22.0) -34.6%

Income from securities and equity investments 1.9 6.1 4.2 221.1%

Other banking income 25.0 18.7 (6.3) -25.2%

Income from non-banking operations 3.4 1.8 (1.6) -47.1%

Personnel costs (227.0) (235.4) (8.4) 3.7%

Third party services and supplies (108.3) (106.4) 1.9 -1.8%

Other banking costs (183.5) (105.8) 77.7 -42.3%

Costs of non-banking operations (4.7) (3.4) 1.3 -27.7%

Depreciation allowances (61.0) (61.2) (0.2) 0.3%

Net provisions and recoveries 27.3 (78.7) (106.0) -388.3%

Taxation (87.3) (62.0) 25.3 -29.0%

Profit for the year 634.4 420.3 (214.1) -33.7%

MOP Million

Income Statement 2019 2020Change

10 BNU


Net Interest Income

Net Interest Income was MOP 804.7 Million in 2020, MOP 66.6 Million, i.e., 7.6% lower than in 2019, due

to the decrease of interest income (less MOP 186.9 Million; less 15.5%) as a result of the progressive

impact of lower global interest rates.

In particular, the following factors have all had an adverse impact in the interest income, which was only

partially compensated by the increase in the credit volume:

reductions of the IBOR rates- Hong Kong interbank offered rate (“HIBOR”), Macao interbank

offered rate (MIBOR), USD LIBOR, (the base index rates for most of the corporate loans);

the flattening of the interest rate bond yield curves (affecting our debt securities portfolio); and

the significant reduction of the rates at which BNU placed its cash balances.

Net Fees Income

Net fees and commissions income decreased by 13.6% (MOP 20 Million) in 2020.

This reduction mainly reflects:

the decrease of credit card fees caused by a significant drop in the volume of card

transactions, due to much less visitors (and therefore acquiring fees), less travelling and

spending by residents and the increased use of mobile payments (MPay, Huawei Pay, Apple

Pay, Alipay) more convenient but generating less commissions;

the decrease of credit related fees that in 2019 included non-recurring profits; and

the reduction in bancassurance fees.

Total %

Interest income 1,204.1 1,017.2 (186.9) -15.5%

Interest expense (332.8) (212.5) 120.3 -36.1%

Net interest income 871.3 804.7 (66.6) -7.6%

MOP Million

2019 2020Change

Total %

Fees and commissions income 313.8 200.4 (113.4) -36.1%

Fees and commissions expenses 166.9 73.5 (93.4) -55.9%

Net fees and commissions 146.9 126.9 (20.0) -13.6%

MOP Million

2019 2020Change

11 BNU


Income from Other Banking Services

Income from other Banking Services, a category which refers to the Profits in Foreign Exchange (FX)

including the Profits on the revaluation of FX Positions, decreased by MOP 37.7 Million.

This was mainly caused by the significant reduction in foreign exchange transactions (associated with

credit cards, cross-border transfers and sales and purchases of currencies) and an unfavourable foreign

exchange revaluation in the Hengqin branch.

Income from Securities and Equity Investments

This income includes gain on disposal of debt securities and dividend income and is detailed as follows:

Other Profits and Losses

Other Profits and Losses dropped from a net profit of MOP 5.3 Million in 2019 to a loss of MOP 1.2 Million

in 2020, due to the decrease of banking income caused by significant lower levels of customers’

transactions.

Total %

Income from other banking services/ FX net Profits 63.5 25.8 (37.7) -59.4%

MOP Million

2019 2020Change

Total %

Gain on disposal of investments in debt securities 1.7 6.0 4.3 252.9%

Dividend income 0.2 0.2 - 0.0%

Income from securities and equity investments 1.9 6.2 4.3 226.3%

MOP Million

2019 2020Change

Total %

Other banking income 25.0 18.7 (6.3) -25.2%

Income from non-banking operations 3.4 1.8 (1.6) -47.1%

Cost of non-banking operations (4.7) (3.4) 1.3 -27.7%

Other costs and losses (16.5) (16.5) - 0.0%

Taxation (1.9) (1.8) 0.1 -5.3%

Total other profit and loss 5.3 (1.2) (6.5) -122.6%

MOP Million

2019 2020Change

12 BNU


Operating Costs

Operating costs, as a total, increased by MOP 6.6 Million (1.7%) compared to 2019.

The biggest variation relates to Personnel costs. They are detailed as follows:

Salaries and wages (a category that excludes Board Remuneration) increased by 2.5%, i.e., slightly under

the inflation rate in 2019 (2.75%).

In spite of the additional expenses induced by the implementation of measures to protect our employees

and customers from the risks of the pandemic, costs related to third party services and supplies decreased

by 1.8% (MOP 1.9 Million), due to the strong and disciplined cost controls in place.

Net Provisions and Recoveries

Net Provision charges increased in relation to 2019, as with the credit growth there was an increase of

the 1% general provisions (in 2019 there had been a net reversal of the general provisions as the volume

of credit had decreased) and also due to the increase in specific provisions.

Despite the decrease of the non-performing loans ratio (loan balances which are more than 90 days

overdue/ total gross credit granted) to 1.05% (1.42% in 2019), the Bank decided, taking into account the

Total %

Personnel costs 227.0 235.4 8.4 3.7%

Third party services & supplies 108.3 106.4 (1.9) -1.8%

Depreciation allowances 61.0 61.2 0.2 0.3%

Total operating costs 396.3 403.0 6.7 1.7%

MOP Million

2019 2020Change

Total %

Remuneration of Board of Directors & inspection 9.1 9.2 0.1 1.1%

Salaries and wages 190.3 195.0 4.7 2.5%

Benefits 25.0 27.5 2.5 10.0%

Others 2.7 3.7 1.0 37.0%

Total personnel costs 227.1 235.4 8.3 3.7%

MOP Million

2019 2020Change

Total %

(Charge) / reversal of general provision for credit 30.3 (25.3) (55.6) -183.5%

(Charge) / reversal of specific provision for credit (12.8) (61.0) (48.2) 376.6%

Recoveries of bad debts written-off 9.8 7.6 (2.2) -22.4%

Net provision charges and recoveries 27.3 (78.7) (106.0) -388.3%

MOP Million

2019 2020Change

13 BNU


economic recession in Macao and using a forward looking approach, to increase the specific provision

charges related to some loans to reflect contingent unfavorable developments.

2020 Results and Net Profit for the Year

Because of the above factors, the net profit of the Bank fell from MOP 634.4 Million in 2019 to MOP 420.3

Million in 2020.

3.3 - RATIOS

PROFITABILITY AND EFFICIENCY

2019 2020 %

ROE (1) 12.6% 8.2% -34.9%

ROA (2) 1.2% 0.8% -33.3%

Cost-to-Income (3) 36.4% 41.9% 15.1%

Cost-to-Income Core (4) 32.9% 37.3% 13.4%

(1) ROE – Return on Equity - Income before tax/average shareholder's equity (average of the previous

year-end and the current year-end balances, excluding property revaluation reserves).

(2) ROA – Return on Assets - Income before tax/average net assets (average of the previous year-end

and the current year-end balances).

(3) Cost-to-Income - Operating Costs (the sum of Personnel Costs, Third Party Supplies and Third Party

Services and Depreciation Allowances)/Operating Income (the sum of Net Interest Income and

Dividends, Net Fees and Commissions Income, Income from Other Banking Services and Other

Profits and Losses).

(4) Cost-to-Income Core - Sum of Personnel Costs, Third Party Supplies and Third Party Services/the

sum of Net Interest Income and Other Similar Income, Net Fees and Commissions Income.

The evolution of the ratios in 2020 unavoidably reflects the impact of the headwinds caused by the

pandemic outbreak. However, even in this adverse environment, they still compare favourably with the

average values of the industry.

14 BNU


4 – ACTIVITY OVERVIEW

4.1 - RETAIL AND PRIVATE BANKING

The Bank has a solid retail banking model. Its Retail Banking Division includes the Retail Banking Area in

the strictest sense served by a network of 20 branches in Macao and the Private Banking platform served

by a dedicated office.

This unit also aims to serve the needs of our retail clients who operate in the Greater Bay Area.

4.1.1 RETAIL BANKING

This area covers all customer banking business, except the corporate banking business managed through

the corporate divisions, including the banking activity with personal clients, small Individual

Entrepreneurs/Sole Proprietorships and micro SMEs.

Services provided to the Retail Banking’s customer base include current, savings and time deposits,

housing and other mortgages, personal loans including consumer loans, debit and credit cards, local and

international payment services, bancassurance products, mutual funds and other investment products.

In 2020, the first priority was to ensure the health and well-being of our clients and employees as well as

to provide the targeted financial support required through the recession that followed the pandemic

outbreak2. BNU was one of the active participants in offering the government’s “Suspension of Housing

Loan Principal Repayment Scheme” and the Retail Banking Division successfully assisted over 400 families

to apply for this program.

The Covid-19 outbreak also intensified the digital involvement of our clients with the Bank and part of this

additional involvement was also successfully induced by the Retail Banking Division who took great care

in making all the customers aware of the multi-channel approach available to them for an easier and more

convenient banking with BNU in order also to protect them from unnecessary personal contacts and

avoidable visits to the branches.

In spite of the unfavourable background, the activity of the Retail Banking was able to register

considerable growth, particularly in terms of housing loans (even against a scenario of a shrinking supply

of new residential properties) and customer deposits. Consumer loans, however, decreased in line with

the depression of the local consumer market and the general propensity to spend less.

Taking advantage of the overall bullish stock markets sentiment, BNU successfully launched promoting

campaigns for stock trading, through its online platform, and for mutual funds which resulted in an

increased number of clients and transactions.

In partnership with Fidelidade Macau, the insurance company, the Bank also launched successfully new

insurance products and amongst them “RetireJoy”, targeting people with active plans for their retirement

and continued to offer several different insurance solutions to its clients.

2 Measures implemented to protect our customers from the risks of the pandemic and to provide financial support to them are detailed at length in the ESG chapter.

15 BNU


4.1.2 - PRIVATE BANKING

In 2020, the Private Banking area continued to offer personalised quality services to the bank’s high net

worth individuals. Products offered include wealth management products like insurance and investment

products, such as mutual funds, bonds and discretionary asset management, as well as more traditional

retail banking products: deposits, mortgages and other personal loans, debit and credit cards and

payment services.

BNU’s Private Banking aims to maximise client’s satisfaction by providing more tailored products with high

service standards taking also advantage of new technological solutions with a strong focus and

commitment to risk management.

4.2 - CORPORATE BANKING

Corporate banking provides banking services and financial solutions to the SMEs not covered by retail

banking, other corporates, Government and institutional clients.

4.2.1 - DCOR1

DCOR1 focuses on the local SMEs segment of the market.

The outbreak of Covid-19 in Macao right around the Chinese New Year strongly affected the local SMEs

which unfortunately were of one of the hardest hit areas of the local economy as a result of the pandemic.

Taking into account the special vulnerability of the local SMEs, BNU immediately implemented several

initiatives to support and to mitigate the impact of the Covid-19 outbreak to this sector, including:

The launch of a series of specific credit facilities to the sector and, viewing the urgency and

desired full effectiveness of these facility applications, the creation of a special task force to

ensure quick responses to this market.

Once the Government released their support programs to local SMEs (like suspension of

loan principal repayments and interest subsidies on anti-pandemic facilities), BNU worked

closely with the Government in the new supporting schemes and actively promoted them.

Arranged in cooperation with Wynn the joint offer of SMEs supporting schemes.

The Bank also assisted local companies in the production of hygiene and other Covid-19 preventive

products and in particular in the production of face masks, including reusable ones (as part of its

commitment towards the environment).

Once the partial lockdown measures were lifted, the Bank participated in major commercial events to

promote our banking services and our unique product offers promoting BNU as the ideal bank to SMEs.

DCOR1 focused also on the acquiring business and in the promotion of BNU’s POS terminals for credit

cards and e-payments amongst SMEs. It also benefited or promoted several other technological and

efficiency improvements such as:

• the deployment of the agile workflow to most of their credit proposals;

16 BNU


• the launching, for a faster response, of special capped delegation powers for the approval of

short and medium term loans; and

• the effective promotion of the use of Business Online Banking and all its services.

DCOR1, as well as other areas of the Bank, has continued to promote the strengthening of businesses and

investments between Mainland China (with a special focus on the Greater Bay Area, leveraging also in our

Hengqin branch), Macao and Portugal.

4.2.2 - DCOR2

This Division focuses on the provision of comprehensive banking services to the Gaming and Hospitality

Sector (G&H) and the public sector.

In 2020, the gross revenues of the Macao’s G&H sector decreased sharply as a result of the significant

drop in the numbers of visitors and in the hotel occupancy rates.

The pandemic caused Macao to close all casinos temporarily in February 2020 and to practically ban all

visitors until August 2020. Borders only started to reopen from August onwards, when the visas of the

Chinese visitors to Macao were gradually resumed. The mass market gaming revenue surpassed the VIP

market as the Macao gaming sector experienced a more diversified transition.

To cope with the market changes, BNU enhanced it’s relationships with the G&H operators and

streamlined and launched several banking services to increase our market share and profitability in

several areas, like bond underwriting, e-payment channels, direct debits and other transactional services.

4.2.3 - DCORL

The Bank’s Large Corporate Division (DCORL) covers all banking business with large corporate groups

other than the ones in the G&H sector, listed companies, financial institutes, local utilities and universities.

DCORL was also one of the key areas involved in the mitigation of the adverse impacts of the pandemic

assisting our eligible clients, in order to relieve them from temporary financial pressures, to apply for (i)

moratoria on principal repayments of mortgage loans and (ii) Government interest subsidies.

In 2020, the credit portfolio of DCORL as well as the number of their active clients increased significantly

year-on-year. Syndicated loans constituted an important portion of the total new credit granted by this

division.

17 BNU


4.3 - HENGQIN BRANCH

In spite of the overall negative impacts of the Covid-19 pandemic, the Hengqin Branch recorded a

substantial growth (over 200% year-on year) of its credit portfolio.

Funding of its activities relies heavily on its allocation of capital and on borrowings from BNU Macao.

BNU’s Hengqin branch is particularly well-positioned to take advantage of the growth and financial

integration of the GBA and of the closer cooperation zone framework within the GBA announced by the

Chinese Central Government by being the only bank headquartered in Macao allowed to operate the

foreign exchange with RMB business in this area.

The branch caters especially to the financial needs of investors from Macao and Hong Kong related to the

purchase of properties and property development in the Zhuhai area.

4.4 - TREASURY

2020 was a year of high volatility on the markets.

Most of the world major economies introduced aggressive monetary stimulus, in an answer to the

pandemic economic impact, by cutting interest rates, which in many countries fell to record lows,

increasing their quantitative easing programs and introducing lending facilities.

The Monetary Authorities of Hong Kong and Macao decreased their base rates by 150 bps to 0.5%,

tracking similar moves of the US Federal Reserve’s rate. Interbank market and bond market yields

decreased accordingly.

BNU’s net interest income was inevitably affected by the overall reduction of the interest rates.

Liquidity in the markets remained strong during the year apart from the month of March when spreads

widened and volatility increased, but these pressures on liquidity were immediately eased by several

coordinated measures introduced by the major central Banks.

BNU’s Treasury continued to invest its liquidity on a well-diversified debt securities portfolio incorporating

fixed and floating rate bonds, predominantly denominated in USD but including also other currencies and

Governments, banks and corporate issuers.

In November 2020, BNU participated also as Joint Lead Manager and Joint Bookrunner in the Patacas

denominated bonds of MOP 2.1Billion issued by the Industrial and Commercial Bank of China.

4.5 - CARDS CENTER DIVISION (CRECA)

In 2020, with the pandemic outbreak, e-payment channels became even more popular and vital in daily

life to avoid unnecessary human contact. The use of contactless cards, e-wallets and digital transactions

jumped dramatically. In line with this, CRECA continued to further develop new e-payment functions to

provide clients with accessible and simple payment solutions.

BNU extended Apple Pay for both Mastercard credit and debit cards and Huawei Pay was also enabled for

UnionPay cards.

18 BNU


Taking advantage of the popularity of shopping in Taobao, the Alipay Top-up and Express Payment service

was launched, linking the Alipay App to the client’s current and saving accounts. This not only enabled our

customers to pay on Taobao and other online merchants using their bank accounts, but also enabled

mobile payments with the Alipay App for offline retail spending.

BNU also made payment integration with some local popular merchant Apps such as AOMI.

As online digital commerce is one of the fastest growing area of payments, to maintain the speed and

convenience that our customers love about online shopping and strengthening and enhancing its security

measures at the same time to prevent frauds, the Bank invested also in advanced technologic solutions

like 3-D Secure 2.0 to accelerate the growth of digital commerce ensuring at the same time a fast and

secure authentication process.

Regarding merchant acquiring services, BNU enhanced and streamlined its services providing through

partnerships All-in-One terminals that allow our merchants to accept all payment channels including

credit cards, WeChat Pay and Alipay with a single POS machine.

4.6 - PHONE AND ONLINE BANKING (Call Centre)

2020 was also a really challenging year for BNU’s Call Centre as Covid-19 had a strong social impact, felt

in all aspects of society and its effect on banking services was palpable throughout the year.

As personal visits to the branches decreased, phone banking services increased. To ensure that this sharp

increase in phone banking would not in any way result in a drop of the quality of the services provided,

the Call Centre team worked really hard to maintain the 24/7 nature of their jobs, while facing reduced

resources, as some team members faced quarantines, which made the performance of their other daily

tasks and staff shifts even harder.

We are proud to say that the unity of the Call Centre team and their professionalism and dedication were

key to ensure the continued quality of our front line services helping our customers to overcome this

unprecedented and difficult situation.

While facing the challenges of the pandemic, this area continued to assist in the improvement of our

Online Banking Services and in the addition of new functions to the digital services provided by BNU. The

following enhancements were implemented throughout 2020:

• In-App provisioning for Apple Pay, enabling the direct binding of BNU cards to Apple Pay.

• Transfer History a feature providing our clients with the details of each transfer for their

review and archive.

• A function allowing the activation/deactivation of BNU debit cards overseas online.

• E-Billing, a project organized and coordinated by AMCM, which allows the payment of bills

issued in Mainland China, providing therefore also Macao residents with more flexibility and

potentiating the financial integration inside the GBA.

• Introduction of the donation functions in BNU Online Banking and BNU Android App,

attesting also the commitment of the Bank to social responsibility and to the needs of the

community.

19 BNU


4.7 - CREDIT RECOVERY AREA

The Covid-19 outbreak and the recession that unfolded reinforced the pressure to further enhance the

monitoring and recovery processes of the overdue credit.

In 2020, the Credit Recovery Area of the Bank (ARCRE) launched the “Negotiation Team”, a team with 3

members responsible for following up retail clients with credit amounts overdue for more than 30 days.

This team is responsible for the collection and analysis of all customer and credit relevant data, for

proposing credit recovery solutions as prescribed in the Credit Monitoring and Recovery Policy (PARC -

Política de Acompanhamento e Recuperação de Crédito) and for the follow-up and contacts with the

clients in order to ensure a tighter control and a better response and faster solution of these overdue

situations and prevent costly and extensive litigation processes.

The Bank’s Retail Division also tightened the controls over credit amounts overdue of up to 30 days,

recording also all the contacts made with clients to recover loan amounts in arrears in the newly launched

“PARC Overdue Credit System”.

These combined actions also contributed to the significant reduction of the number and the total amount

of overdue loans, with the overdue credit > 90 days decreasing by MOP 62.8 Million, to MOP 283 Million

at the 2020 year-end (MOP 345.8 Million at the 2019 year-end) and to the reduction of overdue (> 90

days) credit in relation to the total of gross credit ratio to 1.05% (1.42% in 2019).

4.8 - INTERNAL CONTROL

The internal control system is the set of strategies, principles, processes, systems, policies, rules and

procedures established in BNU to ensure:

1. Performance objectives, i.e., the efficient and profitable performance of the activity over the

medium and long term;

2. Information objectives through the existence of financial and managerial information which is

accurate, complete, reliable and delivered on a timely manner to support the decision-making

and control processes; and

3. Compliance objectives guaranteeing the observance of all the applicable legal and regulatory

dispositions and requirements, the prevention of money laundering and the financing of

terrorism and the adherence to high standards and practices of professionalism and ethical

behavior.

The internal control system is based on the compliance function, the risk management function and the

internal audit function. These three functions are carried out by organizational structures that operate

transversally across the Bank.

The management of the internal control systems is also attributed to certain governance bodies as

detailed in the Corporate Governance chapter.

20 BNU


4.8.1 - COMPLIANCE

In 2020 the Compliance Department continued to ensure the coordination of the overall management of

the compliance risk in BNU and the safeguard of the timely review and fully effectiveness of all the policies

and procedures adopted by the Bank to prevent money laundering and the financing of terrorism in line

with all applicable laws and regulations and best practices.

The Compliance Department continued to reinforce and strengthen the adherence to legal and regulatory

requirements and to promote actions that contribute to an organizational culture of compliance,

supported by high standards of ethics and integrity, carrying out several key initiatives to that effect in

2020, including:

Compliance risk identification, monitoring, assessment, counselling and audit;

Transactions’ monitoring and screening, this year with the full implementation of a new tool

for transactions monitoring, the SAS Transactions Monitoring System.

Code of Conduct and Conflict-of-Interest Prevention and Management Policy monitoring,

updating also the Code of Conduct with new additional conduct obligations for all the BNU’s

employees and related parties;

Bank-wide trainings on Code of Conduct, Anti-Money Laundering and Countering Financing of

Terrorism and on compliance requirements;

Ensuring the timely and accurate delivery of the FATCA & CRS reports;

Enhancement of the handling of the conflict of interests in BNU, improving the training

thereon and implementing more controls by the Compliance Department; and

Enhancement of the processes related with the identification of the ultimate beneficial owners

of corporate customers.

All these actions were carried out in a particularly difficult year, in which the Bank’s procedures had to be

adapted to accommodate the new non face-to-face reality caused by Covid-19, which brought additional

challenges in terms of Know Your Customer and Anti Money Laundering. Nonetheless, the Bank continued

to follow a prudent risk-based approach strictly adhering to its fundamental policies and principles.

4.8.2 - RISK MANAGEMENT

The person ultimately in charge of BNU’s risk management function is the CRO (Chief Risk Officer), who is

also a member of the Executive Committee and Board of Directors of BNU. The CRO of BNU is globally

responsible for monitoring the bank’s risk management framework and in particular for ensuring the

adequate and effective operation of the risk management function.

The Risk Management Function is a control function responsible for the risk management framework with

the purpose of protecting BNU’s capital, through the management of several risks incurred by the Bank:

capital and solvency, credit, market, liquidity, interest rate of the banking portfolio and operational

portfolio risks as well as non-financial risks together with the management of the existing interrelationship

between them ensuring also the coherent integration of their contributions. Additionally, this function is

responsible for the internal control of all the risks within BNU with the exception of the compliance risk.

As part of its tasks, it is also responsible for the management of crosscutting exercises such as Risk

Appetite Statement (RAS), Internal Capital Adequacy Assessment Process (ICAPP), Internal Liquidity

Assessment Adequacy Process (ILAAP), Internal Control, the Business Continuity Plan (BCP), the Recovery

Plan and stress testing, as well as the dissemination of a strong risk culture.

21 BNU


Principal Developments in 2020

The following were the major developments regarding BNU’s risk management practices in 2020:

Strengthening of the risk management function governance framework, including implementing

new corporate policies, reviewing and updating the existing policies regarding the risk taxonomy,

credit risk, market risk, interest rate risk on the banking book, operational risk, non-financial risk,

internal control and ICAAP;

Restructuring the organizational model of the Risk Management Division, aiming to reinforce the

independence and the responsibilities of the Risk Management Division as the 2nd line of defence

at the CGD Group level and ensuring the global view of all the financial and non-financial risks to

which the Group is exposed;

Introducing the new system “Teammate+” for monitoring and consolidating all the deficiencies in

BNU and publishing the annual internal control report for 2020;

Introducing a new operational risk management session and online training, intending to enhance

the staff’s awareness towards operational risks and its associated practices;

Implementation of the daily layout standard, which is a project among all the entities in CGD

Group to establish a reporting model of risk data;

Development and implementation of the model for calculating stable and core deposits among

the sight and savings deposits, also known as non-maturing deposits (NMDs), i.e., deposits with

no contractual maturity, with the aim of reinforcing BNU’s liquidity projections;

Increased monitoring and reporting to BNU’s senior management and Parent Bank regarding

credit risk, liquidity risk, operational risk and IT risk in view of the increasing uncertainty arising

from the Covid-19 pandemic; and

Incorporating an operational plan aiming at identifying the potential and existing distressed

customers, conducting follow-ups thereon as well as preparing possible actions in case of

restructuring or renegotiation.

In 2020, there were no significant regulatory or legislative changes with impact on the risk management systems in BNU.

Risks by types

Overall

At least once a year, BNU reviews its Risk Appetite Statement (RAS) ensuring that it is aligned with all the

regulatory requirements and the best market practices in order to guarantee the Bank’s profitability and

the best interest of its stakeholders in a sustainable manner with an appropriate level of risk. The periodic

RAS review is approved by the Board of Directors.

22 BNU


The RAS is comprised of 37 metrics covering key risks relevant to the Bank’s activity including Solvency

Risk, Business and Strategy Risk, Credit Risk, Concentration Risk, Liquidity Risk, Interest Rate Risk, Foreign

Exchange Risk, Market Risk, Sovereign Risk, Operational Risk and consolidated risk metrics within the

group.

In 2020, several metrics within the RAS were updated and all the RAS metrics were calculated and

monitored against their limits.

Other developments in 2020

BNU has implemented the Recovery Plan aiming at promoting the simulations of adverse scenarios that

may affect the bank, translating into systematic, idiosyncratic and/or combined events, and establishing

internal liquidity and solvency-building levers to mitigate such scenarios without the need of extraordinary

public financial support.

In order to establish an appropriate mechanism to ensure that the credit facilities that are only approved

by the credit originating functions (commercial units) within their power delegations, adhere to the credit

standards issued by the regulator, a regular quality review of these facilities was performed with sampling

on all the credits granted for over a year. It was concluded that they were generally in compliance with

the regulatory requirements and the internal policies.

In 2020, the overall responsibility for the internal control was transferred to the Risk Management

Function. The internal control framework was defined, including the responsibilities for each unit which

is involved in the deficiencies, the concepts, criteria and methodologies that, in a cross-sectional way,

ensure the consistency of the internal control deficiency management. An internal control report under

the coordination of the Risk Management Function was also prepared and submitted to the Bank of

Portugal. In addition, the Risk Management Function was made responsible for the monitoring of all the

deficiencies in the internal control system of BNU and to facilitate the resolution of the deficiencies in a

timely manner.

As referred, different aspects were also closely monitored including credit operations, cases of deferral of

principal repayments (grace period), non-performing exposures, loan commitments underwritten,

operational events and last but not least complaints from customers in order to timely identify the

potential risks arising from the pandemic outbreak in 2020. This information was reported to the senior

management of BNU and to CGD. Moreover, the Risk Management Function also kept track of the number

of staff who were in quarantine and might have been infected with the coronavirus. Several metrics were

also defined to monitor the performance of essential activities and other operations from different

divisions in the event of a local Covid-19 outbreak in Macao.

Business and Strategic Risk

Three metrics were closely monitored throughout the year, the Return on Equity (ROE), the Return on

Assets (ROA) and Cost to Income, (recurrent). BNU has control and mitigation methods in place in order

to ensure that losses derived from some risk subcategories are non-material. BNU also adjusted its

business model to a certain extent in response to the contraction of Macau’s economy induced by the

Covid-19 pandemic.

23 BNU


Solvency Risk

The capital adequacy ratio of BNU is far above the minimum required by AMCM (Total capital ratio as

of December 2020: 20.3% - minimum regulatory requirement: 8%). In addition, four metrics were

closely monitored throughout the year: the Total Capital Ratio, the Risk-Weighted assets for credit risk,

the Leverage Ratio (all monitored on a monthly basis) and the Internal Capital Buffer monitored on a

quarterly basis.

Credit Risk

The Risk Management Division is responsible for assessing and controlling the credit risk on the banking

portfolio, which is mainly based on the use of aggregate exposure levels, non-performing exposures

(NPE), non-performing loans (NPL) and their coverage ratios and other credit risk metrics.

In 2020, the Bank continued to use the IFRS 9 credit impairment model in the accounts used for CGD

Group consolidating purposes, which enabled the calculation of the impairment on the basis of the

borrowers’ creditworthiness and the level of existing collaterals. The credit impairment model

continued to be governed by the collective and individual impairment, which is described as below:

Collective impairment: the expected losses per risk sub-segment are assessed on exposures

which are not considered in individual impairment. They include assets with similar risk

characteristics (credit segment, type of collateral, payment history, ratings and scoring

models).

Individual impairment: an individual assessment is made on customers with exposures

considered to be individually significant to the bank. This process involves the collaboration

of several BNU’s units, such as the Commercial Units, the Credit Risk Division, Credit Recovery

Area with the Risk Management Division being ultimately responsible for the procedure and

final assessment as a whole.

In 2020, loan undrawn commitments were included in impairment calculation and the risk

factors of the credit impairment model were updated to include the historical information

between July 2019 and June 2020.

In response to the potentially increased credit risks due to the pandemic-induced recession in 2020,

BNU elaborated an operational plan for clients that could be more affected, identifying also a list of

clients that were already in distress or might face financial difficulties in the future, by evaluating their

updated financial situations, status and future prospects. The Risk Management Function, working also

in coordination with DICRE, was responsible to follow up these clients in and report them on a monthly

basis to BNU’s senior management. The follow up procedures, the information to be considered, the

criteria to identify these clients and the action plans in the case of restructuring or renegotiation were

all clearly defined.

The Risk Management Function also monitors all moratoria cases, the performing and non performing

exposures and the use/availability of credit limits per sector and this information is also regularly

reviewed by the Executive Committee and reported to the Parent Bank’s Risk Division.

The IFRS9 impairment model and the mortgage loan scoring model were reviewed in 2020 and their

risk factors and variables were updated and adjusted to enhance the reliability in the process of

accessing the customer’s creditworthiness.

24 BNU


The Bank reviewed and updated the following Scoring models for Personal Clients which included

implementing new variables, reviewing existing variables, adjusting the scoring weights and the

delegation powers and the inclusion of historical information of the Probability of Default (PD) and Loss

Given Default (LGD):

- Revision of the Mortgage Loan Scoring Model;

- Revision of the Consumer Loan Scoring Model; and

- Revision of the Credit card and Overdrafts Scoring Model.

The framework, methodology and questionnaires for the Rating Model for corporates was

implemented in 2020 and it is expected that all corporate clients will have internal ratings by the end

of 2021.

The Price Adjusted to Risk Model (PAR) for Housing Loans was implemented in 2020 and it will be

implemented in 2021 for Consumer and Corporate loans.

To comply with the local regulator, a Mortgage Lending Scenario Analysis was reported twice in 2020

for the bank’s mortgage portfolio. The analyses involved several aspects such as the Macao’s property

market and interest rate environment, LTV and the impact on the LTV assuming different percentage

drops of the market value of the property, negative equity, debt-servicing ratio and the impacts of

lending rates increases by different percentages.

The maintenance of the Group’s Integrated Information Repository (RIIG) data was also carried out by

communicating BNU’s relevant credit risk information to CGD.

In terms of concentration risk, the top exposures of a client or a group of connected clients as well as

their concentration comparing to the bank’s own funds were monitored. The Risk Management

Division also developed other risk reports related to concentration risk such as the bank exposures by

sectors and products.

Country risk is associated with the economic, social and political conditions within a foreign obligator’s

home country/jurisdiction. In 2020, an individual country analysis was conducted for each country the

bank had an exposure to, which was used to determine the internal risk level for the countries. The

country risk report was analysed on a monthly basis while the country risk stress test was conducted

quarterly.

Lastly, regarding sovereign risk, four metrics were closely monitored throughout the year, namely the

duration of the sovereign bond portfolio; the exposure to national sovereign risk (treasury bills and

treasury bonds); the exposure to national sovereign risk (Macao’s public sector was also included); and

the sovereign debt exposure (excluding Macao) as a percentage of Own Funds.

Market Risk

Market risk refers to potentially negative impacts on profit or loss or in the Bank’s capital driven by

changes in the price of securities, exchange rates, interest rates and other market factors.

Value-at-Risk (VaR) was assessed on a daily basis for all types of market risk (interest rate risk, bond

risk, exchange rate risk and volatility risk), using the historical simulation methodology with different

25 BNU


confidence intervals determined by the duration of the holding period. Three alternative market risk

metrics were also implemented: ES (expected shortfall), 3W (Three Worst) and bpv (basis point value).

The risks in foreign exchange were individually monitored and assessed on a daily basis regarding all

the banking activities and the foreign exchange open positions and their corresponding VaR.

Reconciliations between the month-end Foreign Exchange Position and the local accounts were also

conducted to ensure that the objects of the analysis of the foreign exchange risk and performance

measurement were precise.

The statistical results so produced above were also back-tested by comparing the predictive values

calculated from the risk model with the actual data on the daily changes of the Bank’s portfolio, in

order to monitor the performance and reliability of the risk models used by the Bank.

Any limit breaches in the market risk and foreign exchange metrics and the corresponding corrective

actions were closely monitored. The monitoring process follows the corporate policy which clearly

defines the limits for portfolios subject to market risks and their control procedures including reporting

rules and the implementation timings for corrective measures in the case of any breach of limit.

Interest Rate Risk

The interest rate risk refers to the risks incurred by adverse movements of interest rates that affect the

Bank’s earnings and economic value of capital.

The Bank continued to measure interest rate risks using interest rate gap models, durations gaps and

sensitivity of the economic capital value (by assuming different parallel shocks in interest rates). In

addition, two interest rate risk metrics: “economic value of equity at risk (var. ±50bp) as a percentage

of Own Funds” and “impact on earnings of 12 months accumulated repricing gap (var. ±50bp)” were

closely monitored on a monthly basis.

To comply with the local regulator, an Interest Rate Risk Return report was submitted four times in

2020. Specifically, interest rate sensitive assets, liabilities and off-balance sheet positions in the banking

book for MOP, HKD and USD positions (or other positions that represent more than 5% of the bank’s

assets and liabilities) were assessed in different time bands. Moreover, an analysis of interest rate

exposures at a shock of 200 basis points parallel shift was conducted by applying factors to the net

weighted position in each time band.

Liquidity Risk

Liquidity risk involves the possibility of a gap or mismatch between the bank’s assets and liabilities.

Different tools were used to assess and manage the liquidity risk in BNU. The contractual liquidity gap and structural liquidity gap were assessed and controlled, incorporating the studies on past performance of the depositors in terms of current and savings accounts. Several liquidity ratios were calculated and closely monitored, such as the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR). In 2020, the LCR has been monitored on a daily basis and the calculation of the NSFR strictly followed the instructions from Basel III. In addition, Maturity Mismatching Analysis and Stress

26 BNU


Tests were conducted to analyse the bank’s cash inflows, outflows and accumulated cash flows in future periods.

Following the guideline on Management of Liquidity Risk issued by AMCM, the Risk Management Division calculated and monitored the internal liquidity ratios and stock of liquid assets on a daily basis.

To comply with CGD’s Risk Framework, several exercises were continually done in 2020, including 1) the daily Single Supervisor Mechanism (“SSM”), which monitored the daily liquidity evolution and the largest counterparties, 2) the annual SSM exercise incorporating the impact of Covid-19 was performed during one week as requested by the European Central Bank (“ECB”), as an extension of daily SSM and 3) Additional Liquidity Monitoring Metrics (ALMM), which cover information on concentrations of funds, cost of funds and roll over of funding. The liquidity risk database between BNU and CGD was also enhanced.

The stability and core model for non-maturing deposits (NMDs) has been implemented in 2020 by determining a percentage of the volume of NMDs in BNU that is considered stable and, within that, a percentage of the volume of deposits considered to be core. The concept of core deposits is under the standards published by the Basel Committee in 2016, including several principles regarding the treatment of NMDs, separating those in “core” and “non-core”. The output of the model was used in calculating the NSFR and other liquidity ratios such as internal liquidity indicators suggested by AMCM, aiming at reinforcing the liquidity projections.

Operational Risk

The Bank’s operational risk involves risks of negative impacts on results or capital arising from failures

in the analysis, processing or settlement of operations, internal and external fraud, failures in

outsourcing activities or in the usage of subcontracted resources, internal inefficient decision-making

processes, insufficient or inadequate human resources, or the inoperability of infrastructure.

Operational risk management comprises four stages: identification, evaluation, monitoring &

communication and mitigation. In 2020, the bank continued to strengthen the operational risk

management as follows:

The identification and collection of events and losses from the operational risk and validation

process to ensure the accuracy and completeness of operational risk event information.

Key Risk Indicators (KRI), the metric used for regular and proactive monitoring the exposure

to operational risk, helping to detect in a timely manner the processes where risk exposure

is increasing and ensuring the timely establishment of mitigation measures. To reflect the

changing business environment, the update of KRIs was also proposed and then approved

and implemented in 2020.

Self-assessment of risks and controls to complement the information collected about the

occurred events, characterizing the operational risk profile of the processes based on the

sensitivity and experience of the respondents/assessors. The Bank’s processes must be

subject to a self-assessment exercise carried out at least every three years while the

processes in which the control may be insufficient in relation to the level of risk ascertained

are subject to self-assessment exercises carried out at least annually. The bank executed the

self-assessment for twelve processes in 2020. Based on the responses obtained, the Bank

determines the results for the whole process (Low, Moderate, Material and High) and the

internal control level (Weak, Insufficient, Satisfactory and Good), with the process

27 BNU


established in an evaluation matrix according to their classification for monitoring the pre-

defined risk tolerance.

To promote Operational Risk Management culture in the Bank and enhance the staff’s

awareness towards operational risk, the Operational Risk Management section was included

in the new staff orientation. On the other hand, operational risk management online training

for all staff was launched in 2020 and will be performed on an annual basis in the future.

Reputational Risk

The Bank complies with all local regulatory requirements, has a strong liquidity position and

implements several limits to avoid adverse events. Regarding the consolidated banking supervision

project, risk mitigation techniques and reports are used to ensure BNU's compliance on legal

requirements when obtaining the customers' consents. Regarding customer service, the Customer

Service & Quality Committees (CSQC) were held in BNU on a quarterly basis. Comparisons and analysis

regarding statistics of the complaints were done, details of complaints of the two utmost subjects of

complaints were presented in the meeting with the responses and follow-up actions from the

departments involved.

Climate Risk

While climate risk is not new, the proactive management of this risk, which may impact in several other

BNU’s risks, has become increasingly important and vital in view of the acceleration in climate changes

and the increased frequency of extreme weather hazards. Due to its location, BNU is especially

vulnerable to the risks of typhoons and flooding.

Under the scope of climate risk management, the Bank has continuously been implementing and

enhancing several measures and initiatives, such as:

Increase of its insurance coverages for natural disasters with insurance companies;

Inclusion of prevention and recovery measures from natural disasters that may adversely

affect our employees and clients, disrupt our business activity and operations in BNU’s

Business Continuity Plan;

Reinforcement and strengthening the structures and safety of the buildings and premises of

the Bank to reduce the effects of potential climate disasters; and

Reduction of our environmental footprint and raising the awareness of our customers,

employees and the community to the importance of this issue.

28 BNU


Objectives for 2021

The following were identified as the main objectives for 2021:

Continue to strengthen the risk management culture, the risk management function and risk

awareness in the Bank;

Develop and implement the internal credit rating model for small and medium enterprises as well

as the large corporates in order to streamline the credit assessment process;

Reinforce the business continuity management, including business impact analysis in crisis

scenario(s), and review of the business contingency plan;

Review and update all the risk limits and the existing models in the Bank. If necessary, implement

new limits;

Streamline the resolution of internal deficiencies within the timeframe defined in the corporate

policies, ensuring the proper implementation of the action plan to solve them, with the close

central monitoring of their resolution and follow up through monthly meetings;

Enhance the communication process between the three lines of defence during the resolution of

the deficiencies. Additionally, the second and third line of defence have specific meetings

exclusively regarding the Bank’s internal control systems;

Ensure that a quality and up-to-date database with all the information regarding the internal

control deficiencies is recorded in the internal control system, including both the deficiencies and

opportunities for improvement as per our corporate policies;

Review the qualitative and quantitative impacts for assessing the risk degree of the deficiencies

and the flow of deficiency management guided by the risk degree; and

Coordinate the preparation and consolidation of the individual annual internal control report

ensuring also its compliance with applicable regulatory requirements.

4.8.3 - INTERNAL AUDIT

During 2020, the Internal Audit Department continued to provide independent and objective

assurance as well as consulting functions by evaluating and improving the effectiveness of the risk

management, control and governance processes through a systematic and disciplined approach to

support the Bank to accomplish its objectives. The major works carried out can be categorized into:

Audit Actions (both planned and unplanned);

Independent assessments;

Investigations on operational or fraud related matters.

Internal Audit was also involved in giving consultative opinions on certain Bank’s projects from the

viewpoint of internal control, as well as participating in various security committees including the

Cyber Security Committee (CBSC) and the Information Systems Security Group (ISSG).

29 BNU


Changes in technology in the financial industry will continue to be one of the most significant

disruption with impact on both business and strategic risks. Therefore, it is essential that Internal Audit

keeps up with the technological and business environment changes. BNU’s Internal Audit continues to

invest in people with knowledge of technology-based audits and of data analysis techniques.

4.9 - CREDIT RISK DIVISION

Credit Risk is the risk associated with the financial losses derived from or the degree of uncertainty

associated with the ability of a customer/counterparty to meet its obligations. Given the nature of the

banking activity, credit risk is very relevant and, notwithstanding its interconnection with other risks,

it represents one of the largest parts of the Bank’s overall exposure to risk. BNU’s Credit Risk Division

(DICRE) analysis, issues opinions and decides (up to a certain level and risk conditions) on credit

granting transactions or other transactions involving exposures of the Bank pursuant to the Bank’s

Credit Regulations and the delegation of powers in force from time to time.

In order to centralize the credit decision, DICRE is also responsible for the whole credit granting

process, either through the proposal to the Executive Board of the definition of the parameters on

which the delegated decision must be made or through the case-by-case analysis or decision of each

transaction.

In 2020, under the impact of the pandemic, the Bank provided relief measures under a carefully

managed credit risk, such as the introduction of a grace period on some loan repayments and Special

Credit Facility Packages with priority and rapid approval processing to support our loyal local individual

and business clients.

Methodology

BNU, as a wholly owned Subsidiary of CGD, has implemented all the guidelines used by its Parent Bank

in the risk identification and assessment of its credit operations. These guidelines cover all customer

segments and involve the risk analysis prior to the initial decision making involved in granting credit,

the monitoring of the loan/exposure throughout its life and the need to gather and maintain the

necessary relevant data:

At the point of origination, all credit operations must be economically viable, comply with

BNU’s credit policy, satisfy the capital requirements regulations in terms of the use of the

Bank’s own funds and the defined solvency ratio and be aligned with the Bank’s overall risk

strategy ensuring also they are in line with BNU’s risk appetite framework.

The credit granting analysis and decision must also take into consideration among other

factors: (i) the purpose and the specific conditions of the actual operations to be financed; (ii)

the good standing, business, technical and financial capacity of the borrowers and their

representatives; (iii) their previous relationships with BNU, the CGD Group and the financial

system in general, as well as the global amount of their existing exposures to the Bank, the

CGD Group and the financial system.

The amount and maturity of each transaction must be commensurate with its nature, purpose

and with the material conditions of the actual underlying transaction.

30 BNU


The conditions of each credit operation regarding guarantees and interest rates must be

defined according to the degree of credit risk involved and the client's overall relationship with

BNU and the CGD Group, always taking also into account the Bank's credit policy.

For clients with a more significant level of exposure, or with other increased risk

criteria/triggers, the credit risk evaluation, in addition to incorporating both financial

information and qualitative elements, is also subject to an individual analysis by a team of

analysts who prepare credit risk analysis reports and issue an opinion on the credit risk. This

individual analysis includes (i) the consideration of several up-to-date information on defaults

and incidents towards BNU, the CGD Group and the rest of the banking system, tax and other

liabilities towards the Government or the public sector, pledges, lawsuits, etc. (ii) the

assessment of the managerial capacity of the company; (iii) duly consideration of the

reasonableness of the proposal, (iv) the evaluation of the repayment ability of the

borrowers/projects, adjusting the repayment profile when the risk is considered manageable

and (v) the proper consideration of credit risk mitigating factors such as guarantees, covenants,

etc.

The credit analysis is always based on the economic group the proponent belongs to, collecting

information on all the relevant connected parties in the same group, their risk assessment and

their existing exposures. It also includes the analysis of the borrower’s sector of economic

activity.

4.10 - OPERATIONAL SUPPORT DIVISION

In 2020, BNU’s Operation Division (DIOPE) carried out amongst others, the following new initiatives:

• Finished all the testing required by AMCM for the RTGS (Real Time Gross Settlement) which

was launched in October. This system allows remittances in HKD to be done through local

banks in a more effective and efficient way;

• Performed all testing related to the Online Note Destruction Machine in the Treasury Area;

• Installed the UV Light Disinfection cabinet for sterilization of the bank notes received which

are also kept in the safe for 7 days before being used to minimize the risk of Covid-19 infection;

• The High Speed Sorting Machine was upgraded so that it can count and sort the 24 types of

Zodiac Notes (12 from BNU and 12 from BOC), as per AMCM instructions all Zodiac notes

except the Dragon Zodiac notes had to be launched in circulation;

• Set up procedures with our lawyers in Mainland China to proceed with the loans granted in

Macau with properties in Mainland China mortgaged to the Bank;

• Enhancement of our swift system to enable it to execute the Universal confirmation of all MTs

103 and therefore to track the status of every transactions. This enhancement enables

transparency and richer information related to payment processing chain and benefits all

eligible FIN users; and

• Assist in the implementation and processing of the moratorium granted to clients.

31 BNU


4.11 - PROCUREMENT

In 2020 the Procurement Area of BNU (PECON) was one of the key units of the Bank in the implementation

of measures for the prevention of the Covid-19 pandemic in the workplace and all the Bank’s premises

and among our employees, customers and the community in general. In particular, PECON:

Carried out the procurement process and the purchase of all the materials and supplies required

to effectively minimize the risks of contamination such as:

• personal Protective Equipment (PPE) like masks and gloves;

• all the materials for an enhanced cleaning and disinfection including alcohol, several hand

sanitizer’s dispensers with alcohol-based hand rub, disinfectant sanitizing mats that were

placed at the entrance of all branches and at the staff entrances, a UV Light Disinfection

cabinet for the sterilization of bank notes and air purifiers; and

• thermometers and other body temperature assessment devices and sensors.

Ensured the hiring of additional security personnel to monitor the entrance to the branches and all the BNU’s premises in order to perfect the Covid-19 prevention triage process.

Set up in record time and right at the start of the pandemic outbreak and during the weekend the plastic glass protective partitions at the tellers and other customer services counters positions.

PECON also executed in an effective and disciplined manner the strong and continuous cost controls

guidelines in place, achieving substantial cost savings through the tender, request for proposals ( RFP) and

negotiation processes ensuring also that third party supplies and services remained well under budget.

The Procurement Unit continued to carry out a careful screening of our suppliers ensuring also that they

comply with our Code of Code and our prevention of conflicts of interest policies. Whenever possible,

local suppliers, who represent 74% of the number of total suppliers and, in particular, local SMEs are

favoured.

PECON also worked closely with the supplier of the new procurement system software selected by the

Bank in order to achieve its launch in 2021.

As part of our continued commitment towards the environment, two PECON’s team members attended

the Energy Saving Course organized by CPTTM - The Macau Productivity and Technology Transfer Center

(a non-profit organization jointly established by the Macau SAR Government and the Private Sector). In

this course, also attended by companies from several other sectors, including the Gaming and Hospitality

and the Utility sectors, the Bank’s representatives were able to participate in the learning and sharing of

information related to energy saving measures with a view to further enhance BNU’s energy saving

procedures.

32 BNU


4.12 - HUMAN RESOURCES

In 2020 the Human Resources area (REHUM) was also highly involved in the overall plan implemented by

the Bank to prevent the local transmission of the pandemic and to mitigate its impact, including the

following:

Arranging the accommodation for the non-resident workers from Mainland China as they could

not go home from February to July.

Informing all the Bank’s employees of the Covid-19 preventing measures approved by the

Government and enforced by the Bank and also of the additional ones adopted on the Bank’s own

initiative.

Pursuant to the Macao Government’s guidelines discouraging group gatherings even in the last

quarter of the year, cancelling all the Bank’s traditional festivities like the Annual Dinner and the

and Children Christmas Party and implementing suitable motivating alternatives thereon like the

distribution of vouchers and prices.

Although, the job market was more stable on 2020 and the turnover rate dropped accordingly, REHUM

kept on the recruitment process ensuring the recruitment of the best candidates for any vacancies,

adopting selection processes based on the knowledge, abilities, experience and aptitudes of the

individuals promoting diversity regardless of gender, ethnicity and age.

To strength our recruitment advantage in the new generations, the Bank participated also in career

roadshows organized by local universities and in the Youth Career Expo 2020. The Bank also co-operated

with local universities, the Macao Institute of Financial Services (IFS), the Education and Youth

Development Bureau (DSES) and the Education and Youth Affairs Bureau (DSEJ) to offer internship

opportunities to students of local and overseas colleges and universities.

The staff performance appraisal system was also strengthened with the development of targeted (by

function and position) Key Performance Indicators (KPIs) in order to better evaluate their performance

during the year.

4.13 - ORGANIZATION AND PROCEDURES

In 2020, the area in charge of Organization and Procedures continued to coordinate with the process

owners and key stakeholders the periodical review and development of a repository of manuals,

policies and procedures that guide and regulate our activity and behaviour and provide the adequate

framework for our corporate culture, ensuring also compliance with applicable laws and regulatory

requirements and the implementation of CGD global standards.

In addition, ORGAP has also performed the following tasks along the year:

• Branch efficiency project.

• Process turnaround time analysis of key business and operation processes to ensure the best

customer experience and identify improvement opportunities.

33 BNU


• Annual Business Continuity Management including Business Impact Assessment (BIA), annual

review of the Business Continuity Plan (BCP Manual), cross institution training, global drill on

critical processes for the Covid-19 scenario.

• Processing of the documentation for Operational Risk Management purposes.

• Central Archiving Phase II backlog recovery.

4.14 - IT SYSTEMS

The Bank continued to invest heavily in technology, in the continuous upgrade of critical systems to

expand their capacity in line with the business growth and on all IT infrastructures, enhancing network

performance, functionality, expandability and efficiency, and in digitalisation and continued to identify

opportunities to accelerate innovation, digital transformation and new technologies.

Cybersecurity is one of BNU’s main priorities, crucial to the continued innovation process of the Bank.

The Bank has also a Cybersecurity Committee (please refer also to the Corporate Governance section)

which plays a preventive, monitoring and controlling role regarding cybersecurity issues and the risks

involved.

In 2020 it was also a key element in the response to the Covid-19 crisis with the need to reinforce the

monitoring of cyber-threats given the additional risks induced by the pandemic and to increase the

remote access capacity to enable part of the employees to work from home (a preventive and

precautionary measure implemented at the outbreak of the pandemic) efficiently and safely.

The Bank complies fully with Macau Cybersecurity Law which came into force in December 22, 2019

(MCSL). As part of its obligations under the MCSL, BNU carries out the annual security assessment of

all its systems and submits it to the Cybersecurity Incident Alert and Response Centre (CARIC- Centro

de Alerta e Resposta a Incidentes de Cibersegurança), the Entity coordinated by Macau’s Judiciary

Police and jointly formed with the Public Administration and Civil Service Bureau (SAFP) and the

Macau Post and Telecommunications Bureau (CTT) which commenced its operations on the same day

the MCSL came into effect.

4.15 - MARKETING & PUBLIC RELATIONS

The activity carried out by the Marketing & Public Relations unit (MARKT) in 2020 was also impacted

by the pandemic situation and the consequently challenging changed environment.

There was a rapid change in customers’ needs and habits and we witnessed an acceleration of the

digital transformation and of the digital engagement of our clients with the Bank.

Campaigns, Promotions and other Initiatives

Bearing in mind the above changes in the market, MARKT launched campaigns and promotions and

carried out a series of initiatives with a special focus on the digital channels while still aiming to strengthen

our customers’ loyalty, cross-selling (increasing the number of products per client) so that BNU becomes

the first bank for more of our clients.

34 BNU


Here are the highlights of the year:

1. BNU online channels:

a. Several campaigns and promotional initiatives were performed to increase customer

awareness of the products and services available through BNU online (BOL), BNU App and

BNU Business Online Banking (BOB);

b. Simplification of the BOB, BOL and BNU App forms and transfer templates updated to

facilitate our client’s transactions; and

c. BNU Online Stock Trading and Stock Financing Service promotional campaigns.

2. Extension of BNU mobile payment services:

a. Launched Huawei Pay on April 9th and Alipay Express Payment on June 17th, both with

welcome offers and spending campaigns throughout the rest of the year;

b. Extension of Apple Pay to BNU Mastercard on June 2nd; and

c. Launched AOMI App Payment Channel on September 28th.

3. Other new services available:

a. Online account pre-opening for new University students in Macao became available on

September 2nd;

b. Enhancements in BNU Online Banking & BNU App to facilitate the donations implemented on

June 5th.

4. Credit cards promotions to stimulate the local consumption and recovery of economy, BNU, in

partnership with other entities, launched several promotions with special benefits for BNU

cardholders;

5. Car loans and Housing loans’ promotions, with special offers for designated buildings in Macao and

special programs to retain the Housing Loans portfolio, based on commercial leads and preferential

conditions for refinance loans of selected customers;

6. Special campaigns for SME’s products and services involving both price reductions and new loan

products covering different needs and different business lines, such as the Anti-Epidemic Special

Credit Facility Package, the SME’s Credit Guarantee Scheme and special offers for merchants;

7. Focus on payroll with an exclusive package for selected Companies, Casinos and Civil Servants and

conducting also a big lucky draw for each one of these segments in order to incentivize customers’

loyalty;

8. Bancassurance: BNU continued to work closely with Fidelidade to improve the offer available online

(launched in 2021) and launched several campaigns to promote bancassurance products;

9. Several Deposits & Investments campaigns: especially focused on Mutual Funds and Stock Trading;

10. Focus on paperless: as part of its strategy to reduce its environmental footprint and of its commitment

to the environment, MARKT promoted the migration whenever possible of all account and credit card

statements to electronic statements;

35 BNU


11. Launch of Cheques with QR Code for digital Clearing in line with the government guidelines; and

12. Involvement with the community: participation in several roadshows, fairs and business matching

events with the G&H sector and with other corporate clients, to stimulate local spending and economy

recover.

Promoting the role of BNU as a Banking partner for business between the Greater Bay Area (GBA) and

the Portuguese Speaking Countries (PSCs).

BNU strongly supports Macao as the ideal platform and springboard for the Sino-PSCs business between

Guangdong-Macau-Hong Kong and other cities of the GBA and the Portuguese Speaking Countries (PSC)

leveraging also in the CGD Group strong presence in all the major PSCs.

In 2020, despite the pandemic, BNU participated and spearheaded several initiatives, meetings, events,

protocols, trade fairs, business matching & networking sessions to promote, extend, deepen and

strengthen the scope of economic and financial cooperation between China and the PSCs. The most

relevant were:

Integrating a business delegation headed by Macao Trade and Investment Promotion Institute

(IPIM), that on January 2nd and 3rd visited the start-up incubator Unicorn Field and CloudWalk

Technologies in the Free Trade Zone and participated in the trade fair Macau - Guangzhou

Products Fair 2020 held in Guangzhou;

Signature of a Protocol with ICBC Macau to foster the Sino-Lusophone Business Promotion on

April 9th;

Co-signing (with other entities) a Protocol for the development of green finance in Macau;

Attending the signing ceremony for the launching of cross-border mortgage services (Internet +

Financial Services) with Zhuhai Real Estate Registration Centre;

Participation in the trade event MIF-PLPEX 2020 in October;

Participation of BNU’s CEO as a guest speaker at a Webinar of the Portuguese Chamber of

Commerce & Industry, on October 29th, to promote the role of Macau as a platform between

Macau & the PSC and the opportunities of the GBA;

Participation in the Forum about Financial Innovation and New Opportunities in the GBA and in

Monetary and Finance Round Table Conference on October 30th;

36 BNU


Participation in a Workshop on the “Development Trends of Macao's Financial Industry" of the

University of Macau / FBA-EDP series of the high-end development plan of the School of Business

Administration, on November 4th; and

Participation in the Macao Insurance Industry Professionals Association (MIIPA)’s seminar of

“How COVID-19 Impact the Macao Financial Industry" on November 20th.

Volunteering and Social Responsibility

Marketing, Human Resources and BNU’s Employee Association were highly involved in the organization

of volunteering programs and initiatives. As part of our continued commitment and support to the

community, the Bank participated in several charity events and launched special initiatives addressing the

new needs induced by the pandemic such as the creation of donation Covid-19 Solidarity Accounts and

the development of a special page to facilitate customer donations. For the full details on all these

initiatives, please refer to the ESG section of this Annual Report

4.16 - FINANCIAL CONTROL AND CORPORATE DEVELOPMENT DIVISION

The Financial Control & Corporate Development Division (DIFCC) incorporates the Departments of

Accounting, Planning & Management Information and Corporate Development.

During 2020, DIFCC continued to ensure that BNU:

• complied with all the Local Accounting Standards, CGD’s Accounting Standards for Consolidation

purposes, all regulatory and supervisory accounting guidelines, CGD Group and BNU’s accounting

policies and prudential rules;

• delivered accurate and timely financial reporting to the Monetary Authority of Macao, to CGD,

and, through CGD, to the supervisory authorities of the Parent Bank as part of the consolidated

financial statements of the CGD Group;

• provided internally to the Bank’s senior management and other internal units relevant

information for management purposes; and

• disclosed also to the public in the prescribed forms all required mandatory information.

Financial information is prepared according both (i) to the Financial Reporting Standards (FRS) issued by

the Macao SAR under the Administrative Regulation No. 25/2005 for BNU’s individual financial statements

and; (ii) as BNU is included in the scope of consolidation with its Parent Bank, to the FRS adopted by the

Parent Bank CGD in the accounts and financial statements prepared for consolidation purposes.

In 2020 and in view of the approval by the Secretary for Economy and Finance of Macao in March of FRS

replacing the FRS approved in March 2005 (the “New FRS”), the Bank started its preparations for the

application of the New FRS on its accounting and financial reporting effective January 1, 2022.

37 BNU


As part of its functions, DIFCC:

• is also involved in the preparation of the Bank’s Budget and Medium and Long Term Projections

(B&MLTP) aligned with the strategic business plans and goals set out by the Parent Bank and the

management bodies of BNU;

• helps to set up the business targets to be achieved by the commercial units in line with the budget

approved;

• coordinates the definition of specific (per organizational unit) plans of action; and

• prepares all the detailed information for the above purposes for the review and approval by the

Bank’s Executive Committee (CEXEC)/Board of Directors and senior management.

In 2020, due to the severe impact of the pandemic on the world and Macao’s economic activity and the

unprecedented reduction of the global interest rates, DIFCC carried out in the first half of the year a

revision of the 2020 budget duly approved at the end of 2019. This revision of the 2020 B&MLTP, including

lower and more realistic goals bearing in mind the unforeseen changes in the market and economic

environment, was also duly approved by the Parent Bank and the management bodies of BNU.

DIFCC also monitored the Bank’s performance, evaluating the degree of achievement of the financial and

strategic plans and goals of BNU, producing valuable information for management purposes to the Bank’s

senior management.

The main works performed in the Division on a regular basis can be summarized into:

• Ensuring precise financial record keeping and producing, processing and developing financial

information on the Bank’s activity;

• Providing timely, accurate and smooth reporting to the local Authorities, to CGD and for disclosure

purposes;

• Coordinating BNU’s strategic planning activities, recommending objectives and preparing the

B&MLTP;

• Revising the annual B&MLTP when required;

• Monitoring and tracking actual financial performance and budget execution regularly evaluating

actual and potential deviations in relation to the B&MLTP and to the goals of the Bank;

• Providing several reports and information for management purposes;

• Providing information to CEXEC and participating in several meetings and attending and

presenting information in some of them;

• Evaluating profitability and cost benefit analysis of products and lines of business;

• Working with the different business units providing them with financial and product information;

38 BNU


• Providing studies and analysis of potential business opportunities;

• Coordinating the preparation and review of actions plans individualized; and

• Participating in several projects led by CGD to provide more granular and detailed data in a more

automated way or newly required regulatory information.

4.17 ARCHIVING AND SCANNING

The unit in charge of archiving and scanning (ARSCA) is responsible for the efficient archiving and scanning

of all relevant daily documents from different units and for ensuring the storage of the documents

required to be kept in paper form. The scanning and archiving of all documents from recent years is

current and in 2020 ARSCA was able to completer the scanning recovery for the backlog documents of

most of the units.

39 BNU


5 – ENVIRONMENT, SOCIAL AND GOVERNANCE

BNU carries out its activity with a long-term approach, bearing in mind that a long-term perspective is the

only way to continue to create value for all its stakeholders in a responsible and sustainable way.

In 2020, amidst the unprecedented challenge of the outbreak of Covid-19 faced by the whole world, the

unwavering commitment of BNU to Environmental, Social and Governance (ESG) issues even grew

stronger.

This part of the Annual Report addresses BNU’s activity throughout 2020 seen through an ESG lens.

Quantitative data refers to the period from January 1 to December 31, 2020 and, when materially

relevant, to data from the previous year to show the Bank’s progress in these matters.

For most of the topics, the Global Reporting Initiative (GRI) Standards were used.

5.1 ENVIRONMENT

Carbon Footprint Reduction

Our goals are to make a definite contribution to the decrease of carbon emissions by reducing not only

the Bank’s own environmental footprint but also by increasing the awareness of environmental issues

among our employees, customers and the community.

2020 Measuring our Environmental Footprint

Material Consumption

There was a significant reduction in material consumption in 2020:

- White paper reduced by 56%;

- Envelopes reduced by 63%;

2019 2020 Variation

White Photocopy Paper (Ton.) 74.0 32.7 -55.8%

Paper in the form of envelopes (Ton.) 8.0 3.0 -62.5%

TOTAL 82.0 35.7 -56.5%

GRI 301-1 Materials used by weight or volume

We use only paper certified by FSC.

40 BNU


This was due to our continued efforts to recycle paper and internal envelopes and specially to

progressively digitize:

(i) activities that were traditionally paper based like statements of customers’ accounts and of credit

cards; and

(ii) work processes.

Energy Consumption and Greenhouse Gas Emissions

Electricity used in the Bank’s premises had a slight increase in 2020. This was also caused by the

installation of several electrical devices for an effective pandemic prevention such as body temperature

assessment sensors and automatic hand sanitizers dispensers.

There was a significant reduction in Business Air Travels.

This is of course due to the global outbreak of the pandemic, as Business Air Travels have mostly stopped

since then. The use of virtual meetings was intensified in 2020, but going forward, it will definitely stay

with the Bank in a post-pandemic phase and the value of business travels and face meetings will continue

to be weighed against virtual meetings.

Water Consumption

Water consumption had a slight increase in 2020. This was also related to the implementation of Covid-

19 prevention measures with enhanced cleaning and the increased frequency of cleaning protocols.

2019 2020 Variation

Fleet - Consumption of company vehicles Gasoline (l) 9,997 9,674 -3.2%

Electricity Buildings (kWh) 2,973,809 2,995,084 0.7%

GRI 302-1: Energy consumption within the organization

2019 2020 Variation

Electricity generation - Market Based (tCO2e) 2,626 2,369 -9.8%

Electricity generation - Location Based (tCO2e) 1,814 1,827 0.7%

GRI 305-2 - GHG EMISSIONS BY SCOPE, SOURCE AND STRUCTURE

2019 2020 Variation

Business Air Travels (tCO2e) 36 1 -97.2%

GRI 305-3 - GHG EMISSIONS BY SCOPE, SOURCE AND STRUCTURE

2019 2020 Variation

Water consumption (m³) 8,991 9,916 10.3%

GRI 303-3 Water withdrawal by source

41 BNU


Other Initiatives

In addition to the measures taken to reduce all these consumptions, we have also implemented several

other initiatives, most of them already going back a few years, which also shows our strong commitment

towards the environment:

Elimination of unnecessary single use plastics like plastic bottles and cups in our

buildings.

Use of LED lights.

Managing our waste from electrical and electronic obsolete equipment (e.g. computers,

printers, monitors and parts thereof) by sending it to specialized recycling companies.

Contributing to reduce the waste caused by the use of disposable

Covid-19 masks by co-operating with a local SME in the

production of reusable masks which were then distributed among

BNU’s customers and employees.

Distributing reusable bags among our customers and employees

to minimize waste

Use of environmental friendly (that do not deplete the ozone layer) refrigerant gases like the R410.

Raising awareness among our employees, our customers and the

community to the importance of recycling and supporting

Government initiatives to that effect like the recycling of the boxes of

lunar cakes.

42 BNU


Participating for the 14th consecutive year in Earth Hour, a

global movement to raise awareness of the impact that we all

have in the environment, by switching off all outside lights,

signage and all non-essential internal lights in BNU’s buildings

for one hour twice a year.

Purchasing only furniture that is LEED (Leadership in Energy

and Environmental Design) certified.

Green Finance

We strive to offer sustainable solutions to our customers and to

participate in sustainable finance projects. In recent years, we have

participated in green finance projects like waste management, toxics

deposits elimination and renewable energy generation through solar

panels.

Managing Environmental Risks

Climate change and the increased probability of extreme weather events may adversely impact the assets

and operations of the Bank and of our customers. Due to its geographical location, BNU is particularly

vulnerable to the physical risks of typhoons and floods.

Climate risk also involves potential risks of transition to low-carbon business models (failure to adapt

swiftly to technological and market changes in that direction) and potential reputational and compliance

risks (failure to change our regulatory framework).

BNU incorporates Climate Change Risk in its overall risk framework. Please refer to the Risk Management

chapter.

BNU participation in the Celebration of “Earth Hour”

43 BNU


5.2 SOCIAL3

3 Data refers to figures at year-end unless otherwise referred.

Investments in

Global

Community in

2020

MOP 3.5 MM

Customers #271,568

Gross credit:

MOP 26,806 MM

Total deposits:

MOP 35,838 MM

Total Taxes

Paid in 2020

MOP 86.4 MM

Dividends

Paid to

Shareholders

in 2020

MOP 593.9 MM

Employees

#528

Total Paid to

Suppliers in 2020

Local suppliers:

MOP 74.6 MM

Other suppliers:

MOP 45.0 MM

44 BNU


5.2.1 CUSTOMERS

We serve 271,568 customers and we focus on fostering loyal and sustainable relationships with our

clients.

Ensuring their safety and supporting them

In 2020, we implemented several measures to protect our clients from the risks of the pandemic, which

were amply advertised in the media, in our website and via Facebook, WeChat and SMS.

These measures included:

Upon the outbreak of the pandemic and for a short period of time, the temporary closing of some

of the branches4 restricting also services in others. Our customers were encouraged to use our

digital and remote channels (online banking, App, phone banking), and/or the ATMs and MTMs

machines.

Restrictions to the number of clients in the Branches at any given time5.

Hiring additional security personnel to control the access to the Bank’s premises (assessment of

their body temperature and control of the number of customers).

The indirect effects of the pandemics also caused financial difficulties to some of our customers. We are

proud to say that we thoroughly supported them during these hard periods, relieving them of temporary

financial pressures, under moratoria programs that, upon the verification of certain conditions, allowed

the deferral of principal payments in mortgage loans and loans to SMEs and also assisting them in their

applications to the Government’s interest and credit lines subsidised programs.

Adapting to their needs and addressing them

2020 saw a clear acceleration in the path towards digitalization and in the way our personal and corporate

customers engage with BNU, using digital banking services more than ever. We continued to invest in

4 The exception was the Branch at the University of Macao, which was closed for a longer period, as the campus itself

was closed and could not be accessed.

5 In practice, these restrictions never had to be enforced as our clients, as all Macau residents, had already interiorized all the best practices of social distancing in cases of pandemic which are followed effectively.

271,568

260,871

2020

2019

# Customers

45 BNU


technology improving our digital platforms, offering new digital products and enhancing our digital

solutions to improve customer services.6

Listening to our Customers and ensuring their satisfaction

We are open to our clients’ feedback, endeavouring to acknowledge and correct when things go wrong

and taking their suggestions on board in the tailoring of existing products or the development of new

ones.

Customers’ complaints and suggestions are recorded, promptly acknowledged, swiftly handled and

further analysed and followed through in quarterly Customer Services Quality Committee Meetings.

5.2.2 EMPLOYEES

Our policies and procedures in relation to our employees, a key asset of the Bank and crucial to our

success, reflect the following principles and goals:

a) A commitment to respecting and promoting human rights – Our approach and policies towards

hiring, remuneration and career development seek to attract and retain talent and skills,

independently of their age, gender, ethnic background or of any other factor not related with

knowledge, experience and performance, promoting a culture based on professionalism, integrity

and merit and a culture of inclusion without any discrimination. We have a zero tolerance policy

towards harassment of any kind in the workplace.

b) A commitment to training and to the professional development of our employees, through e-

learning and video conferences, in our training centre and through outside courses and seminars7.

Mandatory Staff training includes courses on Compliance, anti-money laundering, combating the

financing of terrorism, sanctions, management and prevention of conflicts of interest, prevention

of corruption, bribery and of other financial crimes, Code of Conduct, debit and credit cards

features and security, protection of personal data and privacy policies, cybersecurity, operational

risk management and business continuity plan.

c) Promoting teamwork and rewarding performance towards the achievement of BNU’s goals and

objectives, through bonuses and incentives.

d) A commitment to the health, safety and well-being of our staff either in the workplace or outside.

e) Providing benefits beyond the legal requirements that include generous annual paid holidays

(paid leave), subsidized mortgage rates, medical insurance and reduced or waived fees and

charges.

6 Please refer also to the Digitalization chapter. 7 In 2020 these last two options were hardly used due to the pandemic and there was a significant increase in virtual training.

46 BNU


Non-Discrimination, Gender Diversity and Inclusion Policies8

We aim for a diverse and inclusive culture within BNU and gender diversity has long been a priority and

well established practice of the Bank.

At 2020 year-end, the Bank had 528 employees, including 16 employees of the Hengqin branch and 28

temporary or part-time employees.

Distribution by gender:

Of the total of 528 employees, 321 (61%) were women and 207 (39%) were men.

Distribution by employee category and by gender:

69% of the Managers and 68% of the Supervisors were women.

Distribution by employee category and by age group:

8 Unless otherwise referred to, data refers to figures at year-end.

M F TOTAL M % F %Permanent 194 306 500 39% 61%

Temporary or part-time 13 15 28 46% 54%

TOTAL 207 321 528 39% 61%

GRI 102-8 Employees by gender

M % F %Executive Committee 100% -

Senior Management 55% 45%

Management 31% 69%

Technical staff 74% 26%

Supervisors + Officers 32% 68%

Clerks 39% 61%

Auxiliary Staff - 100%

TOTAL 39% 61%

GRI 405-1 Employees by employee category and gender

# % # % # %

Executive Committee 0 0% 0 0% 4 100%

Senior Management 0 0% 17 55% 14 45%

Management 3 2% 91 68% 39 29%

Technical staff 21 46% 23 50% 2 4%

Supervisors + Officers 26 17% 109 71% 19 12%

Clerks 69 44% 74 47% 14 9%

Auxiliary Staff 0 0% 0 0% 3 100%

TOTAL 119 23% 314 59% 95 18%

GRI 405-1 Age distribution by employee category > age 50< age 30 ages 30-50

47 BNU


Age diversity is also a factor taken into account

Distribution by age and gender:

The selection policy also aims to promote age and gender diversity

Training

As previously mentioned, training in 2020 was mostly carried out through e-learning due to the pandemic.

In addition to the mandatory staff training on several subjects already referred, which also involves the

successful completion of a test for each course, there are also specialized courses targeting certain areas

of the Bank.

The total hours of training were 5,745.60 in 2020.

Distribution hours of training by gender:

No gender bias in training too

Distribution hours of training by employee category:

Training is provided across all professional categories.

M F M F M F M F

New hires 44% 29% 4% 7% 0% 0% 13% 11%

Turnover 22% 22% 4% 6% 7% 2% 9% 9%

> age 50 TOTALGRI 401-1 Age and gender distribution by new employee hires and turnover < age 30 ages 30-50

M F

9.4 11.9GRI 404-1 Average hours of training by gender

Executive Committee

Senior Management

Management

Technical staffSupervisors + Officers

Clerks

Auxiliary StaffTOTAL

GRI 404-1 Average hours of training by employee category Avg Hours

11.6

13.5

6.2

2.5

10.9

14.2

6.9

13.6

48 BNU


Gender Pay Gap 9 10

There is practically no gender pay gap across every category.

Safety and Well-being

With the advent of Covid-19, measures were also immediately implemented to protect our employees

from the risks of this pandemic, including:

providing them on an initial phase, before Government masks started being distributed, with free

masks;

enhancing the cleaning and disinfection of the premises;

before the quarantine measures of the Government for inbound travellers came into force,

tracking and tracing employees who might have incurred in riskier Covid-19 prone situations and

requesting them to quarantine and work from home; and

Installing protective glasses in all teller positions.

We provide a safe and comfortable workplace and in 2020 we did not register any days or even hours of

absence due to accidents at work.

We put in place strict typhoons preparation controls to ensure the protection of our people.

9 The gender pay gap (average pay comparison between men and women) is calculated as the difference of the

average remuneration in each professional category paid to male and female employees expressed as a percentage

of the male remuneration.

10 Remuneration includes basic salary and variable pay (bonus and commercial incentives) and overtime pay.

2020

Executive Committee -

Senior Management 97%

Management 94%

Technical staff 80%

Supervisors + Officers 110%

Clerks 96%

Auxiliary Staff -

GRI 405-2 Ratio of remuneration10 of women to men

49 BNU


BNU tries to provide a work-life balance and gives its employees days of vacation leave beyond the legal

requirements.

All new parents can take paid time off after the birth or adoption of a child and in 2020, all new parents

returned to the Bank after their parental leave.

Since 2019, BNU has also dedicated a comfortable and private place for nursing mothers in our main

building.

5.2.3 COMMUNITY SUPPORT

Our commitment and support to the community did not waver and was even reinforced throughout 2020.

BNU targets not only the community we serve directly, but also other countries with whom we have

special links, like Portugal and some other Portuguese Speaking Countries (PSCs).

Solidarity in the prevention of Covid-19

a) BNU contributed with donations to several charities in Macau (Red Cross, the Holy House of

Mercy, the Women’s General Association and Caritas).

b) Raised funds to help PSCs in their fight against Covid-19, by setting up accounts in the Bank to

collect funds to that effect topping them also with BNU’s own contributions.

BNU’s Donation Account-

Helping Cape Verde to fight Covid-19

BNU’s Donation Account- Helping São Tomé and

Príncipe to fight Covid-19

BNU’s Donation Account- Helping Portugal to fight

Covid-19

Supporting Education and Professional Training

Providing scholarships, grants and awards to students from Macau’s Schools and Universities – Institute

for Tourism Studies, the University of Saint Joseph, the University of Macau and the Macau Institute of

Management. The Bank also offers internships to university or recently graduated students.

50 BNU


Recognizing the recipients of the BNU scholarships

to students of the Macao Institute for Tourism Studies (IFTM)

BNU’s scholarships awards ceremony to students of

USJ – The University of Saint Joseph


UM – University of Macau


MIM – Macau Institute of Management

Supporting social inclusion and vulnerable groups in the community

BNU sponsored and partnered with several specialized non-profit social service organizations to

provide assistance to groups of people with particular needs, like the Fuhong Society of Macau,

the Associação de Reabilitação de Toxicodependentes de Macau-ARTM (detoxification and

rehabilitation projects) and Macau Special Olympics.

The Bank contributed with donations to several other solidarity initiatives/charitable

organizations like:

The Charity Event “Walk for a Million” – a big annual event which has been taking place

in Macau since 1984 (carried out online in 2020 due to the pandemic);

The Holy House of Mercy; and

Macau Tung Sin Tong Charitable Society (a relief-oriented organization established in

1892) and the University of Macau by donating a percentage of the amounts of the

transactions carried out using BNU affinity cards to these entities.

51 BNU


BNU’s Donation to the Social Shop of Macau Holy

House of Mercy

BNU’s Donation to the annual charity activity “Walk

for a Million”

BNU’s Donation to the University of Macau as a

result of the use of their affinity credit cards

BNU’s Donation to the Tung Sin Tong Charitable

Society as a result of the use of their affinity credit cards .

Supporting Arts and Culture

BNU sponsored several cultural programs, including, among others, the Portuguese CPLP Short Film

Festival and the NY Portuguese Short Film Festival, the photography exhibition of Gonçalo Lobo Pinheiro,

the exhibition “150 Years – Historic Memories” in the Macau Military Club, the 18th Edition of the

Competition on Fluency and Proficiency in the Portuguese Language and activities of the Portuguese

Consulate and of the Portuguese Centre (Casa de Portugal) in Macau.

Supporting and promoting the CPLP Short Film Festival and the NY Portuguese Short Film Festival

52 BNU


Promoting the well-being of the community by sponsoring sports events

Donating to CESL Asia’s Sports Day

Supporting SMEs

Supporting SMEs in the “Winter Carmo Market” organized by the Industry and Commercial Association of

Macau.

Volunteering

We encourage our people to volunteer to further help the communities we serve. This also helps to build

a strong team spirit. The volunteering initiatives undertaken by our employees were reduced in 2020 due

to the pandemic and in some cases delivered virtually. They included the participation in the following

events:

Charity Fun Day CESL;

Charity Run for the Care Action Macau;

Love Propagation Series (including Charity Visits and a Basketball Matches Day) – co-organized by

the Fu Luen - The Women’s General Association of Macau the Macau Union Suppliers Association,

Dah Chong Hong Food Supermarket and BNU;

Football Charity Match organized by Macau Special Olympics;

Bowling Charity Competition organized by the University of Macau Alumni Association;

The Charity Event “Walk for a Million” already referred; and

Blood donation by several employees.

53 BNU


5.2.4 SHAREHOLDERS

We are committed to a sustainable and long-term creation of value to our shareholders.

In 2020, the total amount of dividends paid to the shareholders (related to 2019) was MOP 593,875,925.

As previously mentioned, BNU’s net profit in 2020 was inevitably affected by the direct and indirect effects

of the pandemic (its impact in the World and Macau’s economies and the global decrease of interest rates)

and the amount of dividends distributed to the shareholders decreased by 36.3% to MOP 378,281,920.

5.2.5 SUPPLIERS

The Bank abides by its rigorous Code of Conduct in the selection of its suppliers ensuring that all the

legislation and all its internal guidelines regarding Anti-Corruption, Anti-Bribery and prevention of

conflicts of interest are strictly observed.

Our suppliers are carefully screened and their reputation assessed. Suppliers and outsourcers are made

aware of BNU Guidelines and Policies regarding Anti-Corruption. They are also required to disclose any

close personal or business relationships they may have with any person employed by BNU or any interest,

participation or involvement with the Bank.

We try to give as much as possible a preference to local suppliers (they represent 74% of the total supplies)

and to SMEs.

5.3 GOVERNANCE

Acting responsibly in a sustainable and transparent way

We uphold high standards of governance11 and are committed to a rigorous compliance with all applicable

laws and regulations. Our policies, manuals, guidelines and procedures reflect this high-level approach in

a transparent way. We note in particular:

Our rigorous Code of Conduct, to which all employees must strictly adhere to, updated often to

incorporate all changes in applicable regulations. All employees are required to pass an annual

test on the Code of Conduct.

A mature policy on the prevention and management of conflicts of interest, that is implemented

in BNU since 2012 and is delivered to all employees upon joining BNU. This policy covers all types

of conflicts of interest that may arise as a result of different types of relationships, covering

customers, shareholder, suppliers, business partners and employees.

Compliance with all applicable anti-bribery and anti-corruption laws is required in all the activities

the Bank is involved. We have a Policy on the Prevention of Corruption and Related Offenses on

which our employees are also trained and annually tested and which is disclosed to all our clients

and suppliers.

11 For Corporate Governance please refer to Chapter 6

54 BNU


We have also implemented strong internal control systems that include internal policies to

prevent and fight corruption. We made available a system – System for Reporting of Irregular

Practices – with well-defined and regulated whistleblowing lines and channels that enable the

disclosure of any situations, incidents, or irregularities of this kind and guarantees that any

information so disclosed will be thoroughly dealt with in a confidential manner.

The existence of policies, procedures and well documented practices to timely prevent the

occurrence and detect financial crimes including money laundering, corruption, bribery, fraud,

sanction breaches, tax evasion and terrorism and proliferation financing.

Working closely with the Government and Regulatory Authorities

We work and engage closely with the Government and Regulatory Authorities and, in particular, with the

Monetary Authority of Macau to ensure that we meet their expectations and completely fulfil their

requirements.

We pay and report all taxes due, contributing to the growth and progress of the community.

Risk Framework

In 2020 our top priorities were to ensure the health and safety of all our customers, employees and of the

community we serve and to mitigate the adverse economic and financial effects of the pandemic.

The risks faced by the financial sector intensified and in particular the credit risk.

These additional risks and their mitigation are incorporated in BNU’s risk framework detailed in the Risk

Management section.

MOP Million

2020

Corporate income tax 85.38

Land and property tax 1.01

Other taxes 0.02

TOTAL 86.41

55 BNU


6 – CORPORATE GOVERNANCE

6.1 – Top Management

Organic Structure of Top Management

Top Management of BNU - Macau includes:

Board of Directors;

Executive Committee;

Remuneration Commission;

Audit and Internal Control Commission;

Risk Commission;

Asset and Liability Committee;

Cybersecurity Committee;

Operational Risk and Internal Control Committee;

Customer Service Quality Committee;

Also includes the following subordinate structure:

Credit Committee;

(a) General Organic Structure of BNU - Macau

CADMIBoard of Directors

Representative

Office

CEXECExecutive Committee

CCRED*Credit Committee

DBANKPersonal Banking

Division

DIOPEOperational Support

Division

CACI**Audit and Internal Control

Commission

CRISC**Risk Commission

ALCO**Asset and Liability Committee

DCOR2Corporate Banking

Division/Team2

TREASTreasurer

DCORLLarge Corporate

Division

DIRISRisk Management

Division

SINFOInformation Technology

CBSC**Cybersecurity Committee

DIFCCFinancial Control and

Corp. Development Division

AGHQNBNU Hengqin Branch

ROCI**Operational Risk & Internal

Control Committee

DICRECredit Risk Division

DCOR1Corporate Banking

Division/Team1

RECO**Remuneration Commission

Ver: 08/06/2020

CSQC**Customer Service Quality

Committee

56 BNU


The general organic structure includes following divisions:

Personal Banking Division;

Large Corporate Division;

Corporate Banking Division/Team 1;

Corporate Banking Division/Team 2;

Operational Support Division;

Risk Management Division;

Credit Risk Division;

Financial Control & Corporate Development Division;

Treasury;

Information Technology;

BNU Hengqin Branch.

6.1.1 CADMI – Board of Directors (Conselho de Administração)

The Board of Directors is the ultimate administrative, management and decision-making body, being its

responsibility to represent, manage, direct and supervise the Bank, as well as the performance of all the

acts necessary to achieve its mission objectives.

The following are non-alienable duties of the Board of Directors:

a) To approve the strategies, plans and general policies of the Bank, specially the annual and pluri-

annual budget and Strategic Planning;

b) Approve the investment policy;

c) Change or modify the Bank’s structure;

d) Acquisitions of equity participations in a percentage over 20% of the acquired company’s

shareholders equity or when the acquisition price is in excess of 10 million Patacas; Previous to

this, in case of acquisition of equity stakes or assets representing a branch of activity or business

unit (and in additional to the approval circuits and delegation of powers already in place), BNU

Macau will inform CGD's DGC and Restructuring Office (prior to the execution of the operation)

in order to assure full compliance with the Commitment at stake;

e) Acquisition of assets, tangibles or intangibles, or substantial third party services contracts, or

others, in the name of the Bank. It is considered a substantial contract when it implies a payment

in excess of 40 million Patacas or other specifically referred in the “BNU Board of Directors

Regulations”.

The Board of Directors is formed by a number of members as specified by the General Assembly, within

the limits set by the Bank’s statutes. Any person or company, not necessarily shareholders, can be

members of the board.

57 BNU


Currently, the Board of Directors is composed of 3 to 9 members whose composition comprises the

following:

* President – CGD nominated person;

* Vice-President – President of the BNU Executive Committee; and

* Seven members – four members of the BNU Executive Committee, two members of the CGD

Executive Committee, and one independent person.

6.1.2. CEXEC – Executive Committee (Comissão Executiva)

The Executive Committee is a Board of Directors specialized committee with executive functions for

taking binding decisions for the Bank, according to the delegated powers.

Such power delegation may include all the powers of the Board of Directors except those that legally,

statutorily or according to the “BNU Board of Directors Regulations” cannot be delegated.

The Executive Committee is formed by a number of members designated by the Board of Directors, not

less than three, chaired by one of the vice-presidents of the Board of Directors.

Currently, the Executive Committee is formed by the following members:

* President – Vice-President of the BNU Board of Directors.

* Member – a member of the BNU Board of Directors primarily responsible for procurement, credit risk,

treasury function and security.

* Member – a member of the BNU Board of Directors primarily responsible for commercial activity.

* Member – a member of the BNU Board of Directors primarily responsible for IT & e-banking operation.

* Member – a member of the BNU Board of Directors primarily responsible for compliance, risk

management and operational function.

6.1.2.1. President of Executive Committee (Presidente da Comissão Executiva)

Without detriment of the duties specifically assigned to the Executive Committee, as a collegial body,

the President of Executive Committee (Presidente da Comissão Executiva) shall:

i. Summon and chair the meetings of the Executive Committee, setting up the respective agenda

and ensure the execution of the decisions taken;

ii. To coordinate the relationship between the Executive Committee and the Board of Directors and

submit to this one the proposals of the Executive Committee;

iii. Submit to the Board of Directors the Executive Committee proposal about the Bank’s annual

budget as well as the big investments;

iv. Coordinate the relationship between the Executive Committee and the Board of Directors’s

delegated committees, attending the respective meetings whenever deemed convenient;

58 BNU


v. Oversee the promotional activities of institutional nature;

vi. Promote, organize, manage and chair representative and institutional events and assure the

external representation on such events.

The President of Executive Committee, therefore assuming the role of Chief Executive Officer (CEO), has

the primary responsibility over:

DIFCC – Financial Control and Corporate Development Division

REHUM – Human Resources

Representative Offices

MARKT – Marketing & Public Relations

6.1.2.2. Member of Executive Committee (Vogal da Comissão Executiva)

The Member of Executive Committee (Vogal da Comissão Executiva), as Executive Director (ED), who

assumes the principal function of procurement, credit risk, treasury function and security. The ED also

acts as the Chief Financial Officer (CFO), has the primary responsibility over:

PECON – Supplies & Facilities;

SECOF – Security Officer;

DICRE – Credit Risk Division; and

TREAS – Treasury.

The role of this ED is to design, develop and implement financial strategic plans and credit risk control

for the Bank in a cost-effective and time-efficient manner.



assumes the principal function of commercial activity, has the primary responsibility over:

DBANK – Personal Banking Division;

DCORL – Large Corporate Division;

DCOR1 – Corporate Banking Division/Team 1;

DCOR2 – Corporate Banking Division/Team 2; and

AGHQN – BNU Hengqin Branch.

The role of this ED is to design, develop and implement business strategic plans for the Bank in a cost-

effective and profit driven manner as well as responsible for the day-to-day business development of

the Bank.

59 BNU




assumes the principal function of IT and e-banking operation, has the primary responsibility over:

SINFO – Information Systems;

PHOBG – Phone Banking Call Center;

CRECA – Card Center;

ARCRE – Credit Recovery Area;

ARSCA – Archiving & Scanning Area;

BTEAM – Business System Analyst Team; and

CDO – Chief Data Officer.

The role of this ED is to design, develop and implement strategic plans in a cost-effective and operation

efficient driven manner for the day-to-day IT and e-banking operation of the Bank.



assumes the principal function of compliance, risk management and operational function. The ED also

acts as the Chief Risk Officer (CRO), has the primary responsibility over:

COMOF – Compliance Office;

DIOPE – Operational Support Division;

DIRIS – Risk Management Division; and

ORGAP – Organization & Procedures.

The role of this ED is to exercise control on compliance and risk management matters. In addition, the

ED has to design, develop and implement operational strategic plans for the Bank in a cost-effective and

time-efficient manner as well as responsible for the day-to-day operation of the Bank.

6.1.3. CACI – Audit And Internal Control Commission (Comissão de Auditoria e Controlo

Interno)

1. Composition of the Commission

1.1. The Auditing and Internal Control Commission shall be composed of 3 (three) to 6 (six) Members,

as set out by the Board of Directors.

1.2. The members of the Auditing and Internal Control Commission are appointed by the Board of

Directors, from among Directors who are not members of the Executive Committee and

members of the Supervisory Board.

60 BNU


1.3. The members of the Auditing and Internal Control Commission must have the appropriate

professional qualifications and experience to carry out the respective duties.

2. Competences

2.1. Without prejudice to the legal powers attributed to the Supervisory Board and the

responsibilities of the Risk Commission, it is incumbent upon the Auditing and Internal Control

Commission to:

a) Monitor the activity of the BNU Executive Committee;

b) Ensure compliance with all legal and regulatory provisions, BNU by-laws and regulations

issued by supervisory authorities, as well as internally instituted general policies, standards

and practices;

c) Monitor (i) the process of preparation and disclosure of financial information, (ii) the

appropriateness and compliance with the policies, criteria and accounting practices

adopted by BNU, in accordance with the applicable accounting standard; (iii) the statutory

audit and other work performed by the Statutory Auditor / External Auditor;

d) Evaluate and promote the effectiveness and efficiency of the Internal Audit Function,

ensuring the direct functional reporting of this function;

e) Conduct a critical appraisal of the BNU Internal Control System, accompanying the

complementary autonomous evaluations that are assigned to the Internal Audit Function,

in accordance with the Macao Financial System Legal Framework, as well as Article 21.7 of

Bank of Portugal Notice 5/2008 and ensuring that its effectiveness and completeness

contribute to the effectiveness and efficiency of the Internal Control System;

f) Evaluate the independence of the Statutory Auditor Company, including the monitoring of

the contracting of additional audit services to be provided by that company to BNU. Ensure

the independence of the Statutory Auditors and the Entities within their Network, namely

when they are providing additional non-audit services to BNU.

2.2. The powers conferred on the Auditing and Internal Control Commission cover the BNU.

2.3. In the performance of the competences referred to in section 2.1(b), it is incumbent upon the

Auditing and Internal Control Commission to:

a) Promote, at BNU, the pursuit of the fundamental objectives in matters of internal control

and compliance and reputational risk management set by Monetary Authority of Macao,

and, provided this does not violate any legal or regulatory rule, including any notices and

directives issued by AMCM, which are in force or will be in force in RAEM, Bank of Portugal

and European Central Bank in their supervisory directives applicable to credit institutions

and financial companies;

61 BNU


b) Be aware of prudential reports relating to the non-consolidated and consolidated BNU’s

activity;

c) Be aware of all inspection actions carried out by Monetary Authority of Macao and other

entities on RAEM in the strict exercise of their powers;

d) To take note of the annual reports provided for under the Macao Financial System Legal

Framework, as well as the directives of the Monetary Authority of Macao, and in

accordance with Articles 16/1/b), 17/1/f) and 22/1/c) of Bank of Portugal Notice 5/2008,

to be prepared by Risk Management, Compliance and Internal Audit Functions and

monitored by the Internal Control function;

e) To take note of the annual opinion(s) issued by the Supervisory Board on the adequacy

and effectiveness of the internal control system and the opinion of the Statutory

Auditor(s) on the internal control system underlying the process of preparing and

disclosing financial information, pursuant to the above Notice;

f) To take note of the Compliance and Risk Management Functions activity plans after their

approval by the Risk Commission.

2.4. In the performance of the competences referred to in section 2.1(c), it is incumbent upon the

Auditing and Internal Control Commission to:

(a) BNU financial statements, the individual and consolidated activity, and the opinions of

the external auditor/statutory auditor on them;

(b) The reliability of the accounting information disclosed internally and externally;

(c) The calculation of income taxes;

(d) Following up on the activities and issuing an opinion on the external audit activity

plans, to be reviewed and approved by the Supervisory Board.

2.5. In the performance of the competences referred to in section 2.1(d), the Auditing and Internal

Control Commission shall have the primary responsibilities over the Internal Audit Department,

with regard to the followings:

a) Approving the internal audit activity plans, after the Supervisory Board issues its opinion on

them and ensuring their follow-up;

b) Obtaining regular and updated information on the areas or subjects covered by the audits

carried out by the Internal Audit Division;

c) Reviewing the activities carried out each semester by the Internal Audit Division;

d) Monitoring the evolution of the main processes under the responsibility of the Internal

Audit Division, in particular those related to the adequacy and qualification of human

resources and technological innovation;

62 BNU


e) Reviewing the conclusions of the respective audit actions and conveying to the Executive

Committee and the Supervisory Board any recommendations it may deem appropriate

regarding the matters audited;

f) Monitoring on its own recommendations to address deficiencies reported in the audit

reports concerning the certification of the effectiveness of the internal control system.

2.6. In the performance of the competences referred to in section 2.1(f), the Auditing and Internal

Control Commission also has the following responsibilities, concerning BNU:

(a) Monitor and supervise the activity of the Statutory Auditor / External Auditor;

(b) Deliver an opinion to the Supervisory Board on the contracting of the Statutory Auditors

and the Entities within its Network, of additional non-audit services to be provided to

BNU and other CGD Group companies, to assure the independence and compliance

with applicable laws and regulations to which the activity of Statutory Auditors is

subject.

2.7. The Audit and Internal Control Commission shall immediately report to the Board of Directors

any detected situations that it considers to be of high risk.

2.8. The Audit and Internal Control Commission shall establish internal communication procedures

with the Board of Directors, the Executive Committee, the other Special Committees and the

Supervisory Board.

3. Meetings

3.1. The Auditing and Internal Control Commission shall meet regularly, on a quarterly basis, as well

as whenever convened by its Chairman or by any of its members.

3.2. The meetings of the Auditing and Internal Control Commission shall be convened at least 5 (five)

days in advance, except in cases where the Auditing and Internal Control Commission needs to

hold an emergency meeting to issue opinions on matters within its competence, with explicit

mention of the matters on the agenda. The schedule of meetings, with date and time, approved

at a meeting of the Audit and Internal Control Commission or communicated by the Chairman

of the Committee is equivalent to the convening of the corresponding meetings.

3.3. Meetings can be convened through e-mail or by a simple verbal notification, including by

telephone.

63 BNU


3.4 The agenda is determined by the Chairman of the Audit and Internal Control Commission, and

any member of the Committee may request the inclusion of items on the agenda, which should

be addressed to the Chairman as soon as possible before the date of the meeting. and

accompanied by their supporting elements.

3.5. Supporting documents necessary for the meetings shall be delivered to all members of the Audit

and Internal Control Commission at least five (5) days prior to the meeting date, preferably,

simultaneously with the convened call or, if this is not possible, in advance to allow its timely

analysis by the members of the Audit and Internal Control Commission.

3.6. Except in cases where a different location is designated in the respective notice, meetings of the

Auditing and Internal Control Commission shall be held at BNU’s head office.

3.7. The meetings of the Auditing and Internal Control Commission may be held using telematic

means, such as video-conference or conference call, provided that BNU ensures the

authenticity of the representations and the security of the communications, and keeps a record

of the contents and the respective participants.

3.8. The meetings of the Auditing and Internal Control Commission shall be presided by the

Chairman, or in case he cannot attend, by a member of the committee elected by the other

members.

3.9. The BNU Secretary (or his designee) shall support the functioning of the Auditing and Internal

Control Commission and the holding of its meetings.

3.10. In addition to the members of the Audit and Internal Control Commission, can also may be

present at their meetings, Directors or third parties, provided they are invited or authorized by

the Chairman or his / her substitute at such meeting, due to the convenience of the subjects to

be discussed.

4. Minutes

4.1. Minutes shall be kept of all meetings of the Audit and Internal Control Commission, which shall

include the proposals presented, the discussions, comments and contributions made by its

Members and all participants of the BNU Directorates and CGD Group companies during the

resolutions adopted, expressly stating the respective justification/basic rationale and any

explanations of vote made by the Members during the meeting.

64 BNU


4.2. It shall be incumbent upon the Secretary, or their appointee, to circulate the meeting minutes to

all members of the Auditing and Internal Control Commission who attended the respective

meetings, for analysis, approval and signature, in the shortest possible time after the respective

meeting or at the immediately subsequent meeting.

4.3. All minutes of the meetings of the Auditing and Internal Control Commission shall be kept in hard

copy, in the corresponding minutes book, and computerised copies of those minutes must also

be extracted and archived in a secure and restricted-access file.

4.4. The minutes shall be drawn up in English, without prejudice to the possibility, where necessary,

of preparing translations into other language.

5. Support Structures

5.1 The Audit and Internal Control Commission may propose to the Chairman of the Board of

Directors, in accordance with the budgeted amount, the hiring of services of technicians and

specialists that they deem necessary for the performance of their duties.

5.2 The Auditing and Internal Control Commission may appoint, when it deems necessary, one or

more supporting elements with experience in the areas of their competence, to provide

information and perform works with a view to substantiating its analyses and conclusions.

6.1.4. CRISC – Risk Commission (Comissão de Risco)

1. Competences and functions:

a) Evaluate and promote the effectiveness of the Risk and Compliance Functions;

b) Monitor BNU's risk strategy and risk appetite, on an individual and consolidated basis;

c) Advise the Board of Directors on the Credit Institution’s current and future risk strategy

and overall risk strategy, taking into account all types of risks, financial and non-financial,

in order to ensure that they are in harmony with the business strategy, objectives, culture

and corporate values of the institution and CGD Group;

d) Assist the Board of Directors in supervising the execution of BNU's risk strategy, on an

individual and consolidated basis, by the top management;

e) Supervise the consistency between all important products and services offered to

customers, as well as the institution's business model and risk strategy, and submit to the

Board of Directors remediation plans when from that analysis the referred conditions do

not adequately reflect the risks;

f) Analyse whether the conditions of the products and services offered to customers take

into account BNU's business model and risk strategy, including on an individual and

consolidated basis, and submit to the Board of Directors a remediation plan, when from

that analysis the referred conditions do not adequately reflect the risks;

65 BNU


g) Examine whether the incentives established in BNU remuneration policy, including on an

individual and consolidated basis, take into account the risk, capital, liquidity and

expectations regarding results;

h) Monitor management policies of all risks related to the activity of BNU or CGD Group,

financial and non-financial, namely the business and strategy, solvency, liquidity, interest

rate, credit, market, pension fund, operational, IT, compliance and reputation risks;

i) Advise the Board of Directors of BNU on the current and future generic policies of BNU or

CGD Group, regarding the assumption, management, control, coverage and reduction of

risk factors;

j) Analyse specific risk categories, namely those of credit and those referring to the Macau

Financial System Act, as well as those referring to the applicable Macao Monetary

Authority directives, and also those referring to Articles 115-N to 115-V of the General

Regime of Credit Institutions and Financial Companies (RGICSF), monitoring and assessing

the risks of non-compliance with the obligations to which CGD is subject;

k) Review the adequacy of resource allocation to risk management regulated in the Macau

Financial System Act, as well as the applicable directives of the Macao Monetary

Authority, and also in the Legal Framework of Credit Institutions and Financial Companies

and other Portuguese and European legislation in force;

l) Assess and promote the effectiveness and efficiency of the internal control processes at

BNU and CGD Group, particularly through the evaluation of the recommendations of the

FGR, the Compliance Function, the 1st line of defense, internal or external auditors, and

of the regulator. Monitor the proper implementation of the measures adopted;

m) Evaluate the processes, methodologies and asset valuation models as well external credit

ratings and approving the most significant aspects of the credit rating as well risk

estimation;

n) Analyze a set of possible scenarios, which include the stress scenarios, to assess how the

institution's risk profile reacts to external and internal events;

o) Follow up the models in force to estimate the risk and to calculate the Own Funds;

p) Provide comments on the appointment of external consultants that the Sole Supervisor

decides to hire to provide advisory or support services;

q) Monitor the rating and scoring models;

r) Evaluate the action plans prepared by the risk management and compliance functions in

relation to all risks;

s) Monitor the corporate policies regarding the management of all risks related with BNU’s

activities, on an individual and consolidated basis, financial and non-financial, namely

liquidity, interest rate, foreign exchange, market, credit, operational and IT, without

prejudice to the powers of the Sole Supervisor in these matters; and

t) Perform any other functions assigned to the risk committee foreseen in the Macau

Financial System Act, as well as in the applicable Macao Monetary Authority directives,

and also in paragraph 1 of article 115-L of General Regime of Credit Institutions and

Financial Companies, provided it does not violate any legal or regulatory rules, including

any notices and directives issued by AMCM, which are in force or will be in force in the

RAEM.

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6.1.5. ALCO – Asset and Liability Committee

The Asset/Liability policy falls under the authority of the Executive Committee, who in turn assigns to the

ALCO authority for its formulation, revision, Implementation and administration and other duties as

deemed necessary. Ultimate responsibility for effective asset/liability management rests with the

Executive Committee.

The Executive Committee will review the minutes of the Asset/Liability Committee at least on a quarterly

basis.

1. Purpose and Main Goals of the Asset / Liability Committee

The purpose of the asset and liabilities committee is to control the various risks assumed by the Bank

in order to ensure a sound financial situation while allowing for the expansion of the Bank´s activity

on a sustainable way.

More specifically the ALCO processes and policy proposes aim to achieve the following main goals:

a) To develop the asset/liability process and related procedures;

b) To measure and manage the various risks facing the Bank on a consistent basis;

c) To establish guidelines to meet various applicable regulatory rules and comply with

requirements from supervisory bodies, namely in matters such as capital, solvability and

liquidity;

d) To form a consistent, centralized and integrated policy for the management of Bank’s financial

position and planning, taking into consideration the policies defined by all areas (investments,

lending, operations, etc.);

e) To oversee the maintenance of a management information system that supplies, on a timely

basis, the information and data necessary for the Committee to fulfil its role as well as

promoting training for BNU staff in matters related to the ALM process;

The ALCO process is primarily focused on the following main risks:

a) balance sheet interest rate risk, i.e. the risk that changes in assets or liabilities interest rates

will negatively affect the earnings stream of the Bank;

b) Price risk (also called valuation or market risk), i.e. the risks that changes in market prices (e.g.

interest rates, exchange rates, assets valuation) will negatively affect the value of portfolio

assets and liabilities, as well as that of capital;

c) Liquidity risk, i.e., the risk that the financial flows generated by assets and liabilities are

insufficient to satisfy commitments with depositors and other creditors, including an outlook

on the mismatches between liabilities and assets, foreseeing the exercise of options in both

cases (e.g. withdrawals or early reimbursements);

d) Credit Risk - risk that some loans and investments may not be repaid (default risk);

implications of asset mix on risk-based capital and asset quality on ability to leverage the

bank´s capital;

67 BNU


e) Regulatory risk, i.e., the risk of not fulfilling directives from the supervisory bodies and the

resulting potential negative consequences.

Other Risks:

Other risks may be measured from time to time. However, their importance is also key to the Bank’s

continued operations, namely:

f) Strategic Risk – The risk from making adverse business decisions;

g) Reputation Risk – the risk from adverse public opinion, and its effect on the Bank;

h) Event Risk - risk that changes in laws, regulations, or other external factors may result in losses

to the Bank;

i) Operational Risk - risk that errors made in the course of conducting business will result in

losses;

j) Compliance Risk – the risk from violations or non-conformance with laws, rules, policies

(regulatory or internal), and ethical standards;

k) Yield Curve or Mismatch Risk - risk of adverse consequences from a change in interest rates

that arise due to differences in the timing of when those interest rate changes affect the

Credit Union’s assets and liabilities;

l) Basis Risk - risk that the spread between instruments of similar maturities will change;

2. Duties of the Asset Liability Committee

The items cited below do not necessarily represent an all-inclusive list of Committee’s duties, given

the dynamic nature of its responsibilities. On a regular basis, Committee should:

a) Hold a formal meeting at least once in two months. Informal meetings will be held on an as

needed basis.

b) Monitor and discuss the status and results of implemented asset/liability management strategies

and tactics.

c) Review the current and prospective liquidity positions and monitor alternative funding sources.

d) Review measurement reports on various risks that can be measured with a reasonable degree of

effort. Compare simulated exposures of these risks to policy limits. Discuss and report on the

impact of major funding shifts and changes in overall investment and lending strategies.

e) Review the current and prospective capital levels (risk-based as well as leverage capital) to

determine sufficiency in relation to: expected growth, interest rate risk, price risk, and asset

mix/quality.

f) Maintaining and reviewing contingency plans to handle unexpected situation regarding liquidity;

68 BNU


g) Preparing, for approval by CEXEC, proposals on strategic guidelines regarding BNU’s management

policy for balance sheet interest rate risk and market risk, establishing indicators, limits and

guidelines;

h) Developing scenarios on the evolution of the main variables determining balance sheet interest

rate risk and market risk (e.g. interest rates, exchange rates) and establishing adequate action

plans;

i) Preparing, for approval by CEXEC, proposals on strategic guidelines regarding the Bank’s capital

ratios, funding and capital management policy, in a regulatory and economic viewpoint;

j) Review outlook for interest rates and economy at both local and national levels.

k) Develop alternate strategies and deemed appropriate, which take into account changes in:

• Interest rate and exchange rate levels and trends,

• Deposit and loan products and related markets,

• Economic outlook and monetary and fiscal policy.

l) Develop parameters for the pricing and maturity distributions of deposits, loans and investments.

m) Report the minutes each quarter to the Executive Committee.

Also, Committee will ensure that it is aware of the overall financial performance of the Bank,

therefore, will keep abreast of significant changes/trends in its financial results. In this regard it may:

Review actual financial results net interest income and non-interest income) and asset/liability

distribution versus budget.

Measure performance against established standards and, if appropriate against peer group data.

Review the annual budget.

3. Committee Members

The Committee will consist of the following members:

a) The Chief Executive Officer that chairs the Committee. In his absence the Committee is chaired by

the Chief Risk Officer (CRO);

b) The Chief Risk Officer (CRO) ;

c) Treasury (TREAS);

d) Personal Banking Division (DBANK);

e) Private Banking (PBANK);

f) Corporate Banking Division/Team 1 (DCOR1);

g) Corporate Banking Division/Team 1 (DCOR2);

h) Risk Management Division (DIRIS);

i) Financial Control and Corporate Development Division (DIFCC);

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j) Card Center (CRECA);

k) Marketing & Public Relations (MARKT);

l) ALCO Support Structure;

m) Other Organs of the Bank whenever necessary can be invited to participate in the meetings;

n) BNU Hengqin Branch (AGHQN); and

o) Credit Risk Division (DICRE).

4. ALCO Support Structure

The ALCO Support Structure should be composed by DIRIS, TREAS and DIFCC.

ALCO has a Support Structure that ensures adequate preparation of ALCO meetings, namely in what

concerns the selection and treatment of information and indicators to be analyzed, and that also

brings consistency and continuity to actions and initiatives that are to be developed within the scope

of ALM process.

The ALCO Support Structure is responsible for collecting and analysing relevant information for ALCO,

preparing report drafts to be submitted to the Executive Committee and monitoring the follow-up of

ALCO deliberations, making regular status assessments.

Each member represented in ALCO is a privileged contact point on matters related to ALM, which

coordinates its action with ALCO Support Structure.

5. Indicators to be Analyzed by ALCO on a Regular Basis

Indicators to be discussed at each ALCO meeting are collected by the Support Structure and

distributed to participants at least three working days before the meeting date.

Framework of BNU Activity

a) Economic and financial situation and outlook.

b) Monetary and credit aggregates evolution.

c) Projections for interest rates developments.

Balance Sheet and Income Statement

a) Deposits, credit and ratios evolution (e.g. credit-to-deposits ratios, overdue credit ratios).

b) Market share.

c) Income Statement evolution, operating income evolution (not aggregate), revenues by

product and by units, ratios (e.g. ROA, ROE).

Liquidity

a) Liquidity situation and wholesale funding.

b) Funding costs evolution with reference to benchmark.

c) Liquidity ratio, maturity gaps and other liquidity risk indicators.

70 BNU


Market Risk and Portfolio Management

a) Investment portfolio management and negotiation indicators (strategy, performance).

b) Shares portfolio indicators (e.g. valuations).

c) Market risk indicators (e.g. VaR, BpV) and portfolio guidelines achievement.

d) Foreign exchange exposure indicators.

Balance Sheet Interest Rate Risk

Interest rate gaps and other balance sheet interest rate indicators.

Capital and Compliance Indicators

a) Capital ratios.

b) Other regulatory ratios and indicators, aggregate and separate.

6.1.6. CCRED – Credit Committee (Comissão de Crédito)

The Credit Committee and all the other decision-making organs has a scope and terms defined in the

Credit Regulations of BNU, S.A. (Regulamento de Crédito do BNU, S.A.) approved by the Board of

Directors.

This specific regulation defines the guidelines and limits of competence for the approval of credit facilities,

banking guarantees and all the other transactions that BNU, S.A. is authorized to perform with its

customers, either retail, corporate or group of corporate customers, under the local Banking Regulations.

To ensure a swift, efficient and safe decision-making process, the following levels of decision are set up

by the credit regulation:

Chairman together with one Executive Director of the shareholder CGD;

Chairman together with another Executive Director;

President of the Executive Committee together with another Executive Director;

Credit Committee;

Credit Risk Division;

Credit Sub-Committee of Commercial Banking Division;

Credit Sub-Committee of Personal Banking Division;

General Manager of Operational Support Division (DIOPE) and the Head of Loans Administration

(ALOAN);

Branches Management;

The said Credit Regulations establishes also the rules governing the decision-making organs and respective

Limits of Authority.

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6.1.7. CBSC – Cybersecurity Committee

1. Purpose and Main Goals of the Cybersecurity Committee

In consideration of the continuous popularity of Cybersecurity Attack in the world, it is necessary to

monitor the coming threats in a preventive approach. The Cybersecurity Committee (CBSC) is

established. While the CBSC has same objective as the Electronic Banking Security Committee (EBSC),

it replaces the latter with a larger scope of topics and issues covered in an extent targeting

specifically to the Cybersecurity related atmosphere.

CBSC aims to improve security control so as to ensure minimizing the risks to the lowest level while

protecting the bank’s interest from preventable losses.

It enhances CEXEC and Heads of Divisions / Departments’ understanding and oversight of

Cybersecurity affairs which might affect the Bank.

2. Functions and Tasks

The CBSC will take up the responsibilities of vulnerabilities and threats assessment, issues analysis

and solution, policies defining and procedures implementation, together with documents and

reports writing.

The span of functions and tasks of the CBSC should cover discussion, review of development

progress, issue analysis, solution, policy and protection measures related to the following topics:

- Vulnerabilities and Threats

- Electronic Banking (including Electronic Plastic Card) Business

- Smart or Mobile Devices related issues (including New Payment Methodologies)

- Cybersecurity Attacks (including Phishing and Social Engineering)

- Cybersecurity Trends and Incidents in the world

- Other Cybersecurity related topics

3. Committee Membership

The committee includes the following members:

All CEXEC Directors

Head of AUDIT (and System Audit)

Head of COMOF

Head of DBANK

Head of MARKT

Head of ORGAP

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Head of PECON

Head of SINFO

Head of CRECA

Head of PHOBG

4. Meetings

The Cybersecurity Committee shall meet quarterly or as convened by CEXEC.

CGD Chief Information Security Officer (CISO) is invited to participate in the Meetings.

5. Minutes

It will be prepared minutes of the Cybersecurity Committee meetings, containing the main issues

discussed and the decisions taken.

6.1.8. ROCI – Operational Risk & Internal Control Committee (Risco Operacional &

Controlo Interno)

1. Purpose and Main Goals of the Operational Risk & Internal Control Committee

The Operational Risk and Internal Control Committee is to coordinate, monitor, assess and debate

issues related to operational risk management and internal control.

2. Functions and Tasks

The Committee is responsible for:

Proposing the risk profile that the Bank must follow, the strategy and the risk management

policies;

Verifying the compliance with the risk management policies and strategies;

Verifying if the global risk level is in accordance with the original established limit;

Monitoring the results in all areas of the implemented methodology, including the loss data

collection process, self-assessment of risks and controls and risk indicators;

Checking the adequacy of the Internal Control System;

73 BNU


Approving the proposed action plans in order to mitigate operational risk and strengthen the

internal control system and reports this to the Board and to the Executive Committee.

3. Committee Membership

The committee includes the following members:

Executive Committee members;

Heads, or their substitutes, of the following units:

• DIRIS;

• COMOF;

• DIFCC;

• SINFO;

• SECAD;

Also participates, as an observer, the Head of AUDIT.

May be involved, depending on the subjects under discussion, the heads of other structures of

the Bank or the Group.

4. Meeting

The Committee shall comply with the following:

Should adopt a quarterly basis, or meet whenever the members of the Executive Committee

deems it necessary;

Invite CGD ROCI Committee to participate in a bi-yearly basis;

Decisions subject to approval of the Board are submitted through an information;

The meetings are supported by the Operational Risk and Internal Control Area, which is

responsible for:

• Preparing an agenda of issues to be addressed;

• Calling the permanent members and other elements, according to the subjects;

• Distributing documents by the participants to support the issues to be addressed

within 24 hours prior to the meetings;

74 BNU


• Preparing and distributing by the participants the documents related with the

matters discussed and the minutes of the meeting.

•

6.1.9. CSQC – Customer Service Quality Committee

In order to better address customer needs and to achieve constructive results in the area of customer

service quality, the «Customer Service Quality Committee» is held on a quarterly basis with the following

participants:

CEXEC members;

Heads of DIRIS, DBANK, PBANK, DIOPE, AOPER, DCORL, DCOR1, DCOR2, CRECA, ORGAP, SINFO,

MARKT, REHUM, PHOBG, DICRE, AUDIT, DIFCC, PLANI, COMOF, ARSCA.

The “Customer Service Quality Committee” will plan, implement and monitor the necessary actions in

order to achieve the target of “highest level of customer satisfaction and quality service”.

DIRIS to present to the Committee below:

1. To analyse information in CSCS;

2. To prepare a report which includes but not limited to:

i. Statistics on the volume and type of complaints/suggestions/compliments;

ii. The level of the complaint handling system meets the prescribed performance standards;

iii. The level of customer satisfaction with how complaints are handled;

iv. Most frequent motives and the measures adopted for handling / solving them;

v. Any repeated problems being identified and corrected.

3. To prepare the meeting minutes related to complaint assessments;

4. To coordinate and follow up of any identified task during the meeting.

ORGAP to present to the Committee below:

1. Error Reduction Analysis;

2. Turnaround Time of Card, Consumer Loan& Housing Loan;

3. Queuing System Statistics Analysis;

4. Central Archiving Statistics

5. Call Center Statistics

6. To prepare the meeting minutes related to aforementioned items 1-5

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6.1.10. RECO – Remuneration Commission (Comissão de Remunerações)

1. OBJECT

The present Regulation of the Remuneration Commission of BNU establishes its organizational rules,

competence and operation, in addition to the legal and statutory provisions.

2. APPROVAL AND TERM

This Regulation was approved by the Executive Committee of the Board of Directors of BNU at a meeting

held on 31st December 2019, the start date of term, being notified to the Chairman of the Board of the

General Meeting, Board of Directors, Audit Committee and Remuneration Commission of BNU.

Notwithstanding its formal approval on the above-mentioned date, all resolutions of the Remuneration

Commission have been taken in light of this regulation that shall remain in force indefinitely.

3. APPOINTMENT AND COMPOSITION

The members of the Remuneration Commission of BNU are appointed by the General Meeting, which

shall also appoint its Chairman.

The Remuneration Commission comprises 3-6 (three to six) members, shareholders or non-shareholders.

The members of the Remuneration Commission of BNU shall have the appropriate professional

qualifications and experience to carry out their duties.

The members of the Remuneration Commission of BNU may not be part of the Board of Directors and

must observe the incompatibilities and comply with the independence requirements applicable to them

under the law and banking regulations.

Prior to the performance of their duties, the members of the Remuneration Commission of BNU shall

enter into a confidentiality agreement with the Bank, undertaking to keep confidential the work and

resolutions of the Governing Bodies and their commissions, as well as the affairs of BNU in matters

related to their management, as well as remaining data and information that they become aware of in

carrying out their tasks, including the duty of secrecy.

4. BINDING NATURE

This Regulation binds all members of the Remuneration Commission of BNU.

Any member of the Remuneration Commission of BNU that is to be appointed on a date after the

approval date of this Regulation shall be automatically and unconditionally subject to it, without the need

for any act or formality of adhesion for this purpose.

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5. COMPETENCES

(A) RECO is entrusted and assigned to assist BNU’s General Meeting of Shareholders. the Board of

Directors and the Executive Commission in respect of assessment, evaluation and/or review of

performance of members of BNU’s Governing Bodies and/or of BNU staff (including holders of relevant

positions), for the purposes of suitability assessment and remuneration levels, mechanisms and payment.

All references to any commission, group, board and/or collegial body made in any policy of the Bank,

which was enacted and is in force, for the purpose of establishing requirements for suitability assessment,

remuneration levels, mechanisms and/or payment methods, irrespective of the nomenclature used

therein, shall be considered as a reference to RECO.

(B) Specifically the Remuneration Commission has the following competences, including but not limited

to:

5.1 Remuneration Policy

a) Promote the analysis and annual assessment of the application of any Remuneration Policy(ies)

effective at the Bank, including, but not limited to, the Remuneration Policy of the Members of

BNU’s Governing Bodies and, namely:

Review and update any such Remuneration Policy(ies) to be submitted to the General

Meeting, in articulation with existing legal and corporate provisions;

Propose to the General Meeting the establishment of remuneration values and to

determine the remuneration of the members of the Governing Bodies, in their fixed and

variable components, to the extent applicable;

b) Identify any effects resulting from the application of the Remuneration Policy in the capital and

liquidity risk management of BNU that recommend a revision thereof;

c) Identify updates, revisions and other adjustment measures deemed appropriate;

d) Issue the annual declaration on the remuneration policy of the members of the Board of Directors

and of the Audit Committee to be submitted for the approval of the General Meeting, in

compliance with the applicable legislation and regulations;

e) Consult the heads of the audit, compliance, risk management and other units, to whom the

contributions considered relevant for the purposes of the preceding may be requested.

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5.2 Assessment

5.2.1 Annual Assessment

a) Assess, on a yearly basis, the structure, dimension, composition and performance of the

Governing Bodies and their Commissions

b) Evaluate, on a yearly basis, the knowledge, skills and experience of each of the members of the

management and supervisory body; and in particular for the Executive Committee, the criteria to

be used in this process shall include an appropriate consideration of the merits, individual

performance and contribution to the efficiency of the Executive Committee.

c) Establish and submit to the General Meeting, for approval, the qualitative assessment criteria to

be applied to the Members of the Governing Bodies;

d) Develop and apply annually a performance assessment model according to the qualitative

assessment criteria approved by the General Meeting;

e) Submit to the General Meeting an individual opinion on the assessment process, as well as an

overall report on the assessment.

Under the process to assess the members of the Governing Bodies, the Remuneration Commission shall

have to monitor the progress of the Bank's Results throughout the year and assess its performance for

the purpose of weighing and determining the variable component of the relevant remuneration.

In order to carry out its responsibilities inherent to the mentioned process, the Remuneration

Commission shall have to comply with the following quantitative criteria:

i- Solvency, comprising: solvency ratio, credit default ratios and real estate obtained by way

of credit recovery;

ii- Profitability, comprising: return on equity (ROE), financial margin, impairment and risk

adjusted return (RAROC);

iii- Efficiency: cost to income ratio;

iv- Market position: BNU’s market shares;

v- Liquidity, taking into account: the conversion of balance sheet customer funds into credit

ratio and maturity of medium/long-term debt.

Qualitative criteria shall also be taken into account, namely:

i- Level of customers’ complaints;

ii- BNU’s reputation indicators.

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5.2.2. Profile Assessment

Formulate and transmit to the General Meeting recommendations on candidates for members of the

management and supervisory bodies, assessing their profile in terms of knowledge, skills, diversity and

experience.

6. RIGHTS AND DUTIES

6.1 Notwithstanding other rights provided for in the Law, the members of the Remuneration Commission

of the General Meeting have the right to obtain the information deemed indispensable to the

performance of their duties through the Chairman of the Remuneration Commission of the General

Meeting.

6.2 Notwithstanding other duties provided for in the Law, the members of the Remuneration

Commission of the General Meeting have the duty to:

(a) Act in accordance with high standards of professional diligence, impartiality, care and loyalty in

the pursuit of BNU’s interest;

(b) Participate in the meetings of the Remuneration Committee of the General Meeting, justifying,

in due time, the impossibility of such presence; and

(c) Keep the facts and information of which they become aware by reason of their positions secret,

except in those cases in which the disclosure is permitted by Law.

6.3 By resolution of its members and in accordance with the previously budgeted amount, the

Remuneration Commission of BNU of the General Meeting may hire the services of technicians and

experts deemed necessary for the performance of its duties.

6.4 The Remuneration Commission of BNU shall assess any difficulties and obstacles identified in the

performance of its duties and shall make all efforts to take appropriate measures to remove those

difficulties and obstacles to its acts in the performance of its duties.

6.5 The Remuneration Commission of BNU supervises the compliance with the rules applicable to its

members, in particular, those provided for in this Regulation.

6.6 The Remuneration Commission of BNU shall prepare an annual report on the activities carried out by

it and the contribution of its members, to be submitted to the Annual General Meeting of BNU.

79 BNU


7. MEETINGS

7.1 The Remuneration Commission of BNU shall meet on a quarterly basis, as well as whenever it is called

by its Chairman or at the request of any of its members.

7.2 Except in cases where the Remuneration Commission of BNU has to meet in emergency to solve

issues within its competence, the meetings of the Board shall be called, at least seven, 7 (seven) days

in advance, with an express mention of the issues to treat.

7.3 The notices may be made through written document (mail or electronic mail) or by simple verbal,

even telephone, communication.

7.4 As a rule, the preparatory documents required for the meetings whose prior examination is deemed

convenient shall be delivered, at least, 5 (five) days in advance of the date of the meeting. The

Chairman of the Remuneration Commission shall promptly make available to each member of the

Remuneration Commission of the General Meeting the preparatory documents required for the

meetings that have been sent to him under the terms of this paragraph.

7.5 The meetings of the Remuneration Commission of BNU may be held using telematic means, such as

videoconference or telephone conference, provided that BNU ensures the authenticity of the

statements and the security of the communications, their contents and the respective participants

being recorded.

7.6 The meetings of the Remuneration Commission of BNU of the General Meeting shall be chaired by

the respective Chairman, or, in their absence or impediment, by the member of the Commission

elected for that purpose by the other members.

7.7 The person who will shall appointed by the Chairman of the Remuneration Commission for this

purpose shall support the operation of the Remuneration Commission of BNU and the holding of its

meetings.

8. RESOLUTIONS

8.1 The resolutions of the Remuneration Commission of BNU shall be taken by a simple majority of the

votes of its members.

8.2 Each member of the Remuneration Commission of BNU shall be entitled to 1 (one) vote. The

Chairman shall have a casting vote in the event of a tie.

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9. MINUTES

9.1 All the minutes of the meetings of the Remuneration Commission of BNU shall be stored in physical

format in the corresponding minutes book, and digitized copies thereof shall also be extracted to be

filed in a secure and restricted archive.

9.2 The minutes shall be drawn up in Portuguese, without prejudice to the possibility, when necessary,

of translations into English.

10. SUPPORT STRUCTURES

The Remuneration Commission of BNU may designate, when it deems necessary, one or more support

elements, with experience acquired in the areas of its competence, to provide information and develop

work in order to substantiate its analysis and conclusions, provided that the respective costs be

incorporated in BNU’s budget.

11. CONFLICTS OF INTEREST

The members of the Remuneration Commission of BNU may not vote on matters in which they have, on

their own account or of a third party, an interest in conflict with the interest of BNU.

12. INTERPRETATION

The interpretation of the provisions of this Regulation shall be in accordance with the legal and statutory

rules in force.

13. AMENDMENTS

Any amendments to this Regulation, whether by modification or deletion of some of its articles or by

introduction of new provisions, shall be approved by a majority of the members of the Remuneration

Commission of BNU and reported to the Chairmen of the Board of the General Meeting, the Board of

Directors, the Executive Committee, the Audit Committee and the Remuneration Commission of BNU, in

compliance with the Remuneration Policy in force.

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7 – GOVERNING AND AUDITING BODIES

Board of the General Meeting

Chairman: Joaquim Jorge Perestrelo Neto Valente

Vice-Chairman: Liu Chak Wan

Board of Directors

Chairman: CAIXA GERAL DE DEPÓSITOS, S.A.,

represented by José João Guilherme

Vice-Chairman: Carlos Manuel Sobral Cid da Costa Álvares

Members: Tou Kei San

Tse See Fan Paul

Ieong Kim Man

João Paulo Tudela Martins

Vítor Fernando Guerreiro do Rosário

Francisco Ravara Cary (until 1 April 2020)

Maria João Borges Carioca Rodrigues (since 21 August 2020)

82 BNU


Executive Committee

President: Carlos Manuel Sobral Cid da Costa Álvares

Members: Tou Kei San

Ieong Kim Man

Vítor Fernando Guerreiro do Rosário

Sole Supervisor: CSC & ASSOCIATES AUDITORS

represented by Chui Sai Cheong

Company Secretary: Pedro Afonso Correia Branco

83 BNU


8 – FINANCIAL STATEMENTS

BANCO NACIONAL ULTRAMARINO, S.A.

BALANCE SHEET AS OF DECEMBER 31, 2020

ASSETS GROSS ASSETS NET ASSETS

CASH 1,704,239,170.75 0.00 1,704,239,170.75

DEPOSITS WITH AMCM 685,233,180.07 0.00 685,233,180.07

CERTIFICATES OF INDEBTEDNESS ISSUED BY

THE MACAU GOVERNMENT 10,490,200,078.00 0.00 10,490,200,078.00

ACCOUNTS RECEIVABLE 56,363,566.30 0.00 56,363,566.30

DEMAND DEPOSITS WITH OTHER CREDIT

INSTITUTIONS IN MACAU 207,111,938.63 0.00 207,111,938.63

DEMAND DEPOSITS WITH OTHER CREDIT

INSTITUTIONS ABROAD 229,852,775.20 0.00 229,852,775.20

GOLD AND SILVER 0.00 0.00 0.00

OTHER CURRENT ASSETS 2,306,667.82 0.00 2,306,667.82

CREDIT GRANTED 26,805,921,297.72 80,216,343.74 26,725,704,953.98

PLACEMENTS WITH CREDIT INSTITUTIONS IN

MACAU 5,834,000,000.00 0.00 5,834,000,000.00

DEPOSITS AT CALL AND TIME DEPOSITS WITH

CREDIT INSTITUTIONS ABROAD 4,022,038,306.24 0.00 4,022,038,306.24

SHARES, BONDS AND EQUITY 4,312,748,316.45 0.00 4,312,748,316.45

INVESTMENT OF ASSIGNED FUNDS 0.00 0.00 0.00

DEBTORS 153,503,220.06 0.00 153,503,220.06

OTHER PLACEMENTS 0.00 0.00 0.00

FINANCIAL INVESTMENTS 8,938,716.09 0.00 8,938,716.09

PROPERTY 2,018,618,472.37 121,846,017.29 1,896,772,455.08

EQUIPMENT 174,173,867.33 136,967,261.85 37,206,605.48

DEFERRED COST 130,625,022.99 101,622,083.11 29,002,939.88

START-UP EXPENDITURE 0.00 0.00 0.00

FIXED ASSETS IN PROGRESS 0.00 0.00 0.00

OTHER FIXED ASSETS 1,833,732.65 0.00 1,833,732.65

INTERNAL AND ADJUSTMENT ACCOUNTS 144,649,004.35 0.00 144,649,004.35

TOTAL 56,982,357,333.02 440,651,705.99 56,541,705,627.03

PROVISIONS,

AMORTIZATIONS AND

NET VALUE

84 BNU



BALANCE SHEET AS OF DECEMBER 31, 2020

BANK NOTES IN CIRCULATION 10,659,981,360.00

CURRENT DEPOSITS 21,851,273,946.59

DEPOSITS AT CALL 0.00

TIME DEPOSITS 5,916,449,539.70 27,767,723,486.29

GOVERNMENT DEPOSITS 8,069,853,032.91

AMOUNTS DUE TO CREDIT INSTITUTIONS IN MACAU 565,651,030.88

AMOUNTS DUE TO OTHER LOCAL ENTITIES 0.00

AMOUNTS DUE TO CREDIT INSTITUTIONS ABROAD 1,193,389,881.21

ASSIGNED FUNDS 0.00

CHEQUES AND ORDERS PAYABLE 26,559,736.34

CREDITORS 169,995,875.36

OTHER LIABILITIES 117,983,009.92 10,143,432,566.62

INTERNAL AND ADJUSTMENT ACCOUNTS 268,825,738.56

PROVISIONS FOR RISKS 290,671,177.37

CAPITAL 2,000,000,000.00

OTHER RESERVES 4,990,758,053.65 6,990,758,053.65

NET PROFIT BROUGHT FORWARD 0.00

NET PROFIT FOR THE PERIOD 420,313,244.54

TOTAL 56,541,705,627.03

LIABILITIES SUB-TOTAL TOTAL

85 BNU



INCOME STATEMENT AS OF DECEMBER 31, 2020

PROFIT AND LOSS ACCOUNT AS OF DECEMBER 31, 2020

HEAD OF ACCOUNTING PRESIDENT OF EXECUTIVE COMMITTEE

EVAN CHEANG CARLOS MANUEL SOBRAL CID DA COSTA ÁLVARES

COST OF CREDIT OPERATIONS 212,555,682.44 INCOME FROM CREDIT OPERATIONS 1,017,195,571.07

PERSONNEL COSTS 235,392,089.80 INCOME FROM BANKING SERVICES 200,341,382.30

REMUNERATION OF BOARD OF DIRECTORS AND

SUPERVISORY COMMITTEE 9,201,351.54 INCOME FROM OTHER BANKING SERVICES 41,513,898.83

SALARIES AND WAGES 194,993,646.43 INCOME FROM SECURITIES AND EQUITY INVESTMENTS 6,122,509.34

BENEFITS 30,392,841.04 OTHER BANKING INCOME 18,685,998.58

OTHERS 804,250.79 INCOME FROM NON-BANKING OPERATIONS 1,841,152.89

THIRD PARTY SUPPLY 8,281,412.27 OPERATING LOSS 0.00

THIRD PARTY SERVICES 98,051,548.48

OTHER BANKING COSTS 105,816,078.08

TAXATION 1,751,220.74

COSTS OF NON-BANKING OPERATIONS 3,373,594.78

DEPRECIATION ALLOWANCES 61,182,224.17

PROVISION ALLOWANCES 86,291,075.34

OPERATING PROFIT 473,005,586.91

TOTAL 1,285,700,513.01 TOTAL 1,285,700,513.01

DEBIT AMOUNT CREDIT AMOUNT

DEBIT CREDIT

OPERATING LOSS 0.00 OPERATING PROFIT 473,005,586.91

LOSSES RELATED TO

PREVIOUS YEARS162,988,968.20

PROFIT RELATED TO

PREVIOUS YEARS7,568,129.63

EXCEPTIONAL LOSSES 0.00 EXCEPTIONAL PROFITS 0.00

PROFIT TAX PROVISION 60,260,472.00 PROVISIONS USED UP 162,988,968.20

PROFIT FOR THE PERIOD 420,313,244.54 LOSS FOR THE PERIOD 0.00

TOTAL 643,562,684.74 TOTAL 643,562,684.74

AMOUNT AMOUNT

86 BNU


9 – SHAREHOLDERS WITH QUALIFIED HOLDINGS

List of the shareholders with qualifying holdings

Caixa Geral de Depósitos, S.A. ----------------------------------------------------- 99.425 %

87 BNU


10 – EQUITY INVESTMENTS

List of the institutions in which they have holdings in excess of 5% in the share capital, or over 5% of their

own funds, with an indication of the respective percentage.

None

88 BNU


11 – SIGNIFICANT ACCOUNTING POLICIES

Corporate Information

Banco Nacional Ultramarino, S.A. (the "Bank") is a limited liability company by shares incorporated in

Macao Special Administrative Region ("Macao SAR"), is a licensed bank authorised under the laws of

Macao SAR and is supervised by the Autoridade Monetária de Macao ("AMCM"). The registered office of

the Bank is located at Av. Almeida Ribeiro, No. 22, Macao.

The primary activities of the Bank are the provision of banking and related financial services in Macao

under the regulations of the AMCM. The holding company (with a 99.425% direct ownership) and the

ultimate holding company of the Bank is Caixa Geral de Depósitos, S.A., a state-owned bank incorporated

in Portugal.

Basis of Preparation

These financial statements have been prepared in accordance with Financial Reporting Standards

promulgated by the Macao SAR ("Macao Financial Reporting Standards").

These financial statements have been prepared under the historical cost convention, except for land and

buildings, which have been measured at fair value. These financial statements are presented in Macao

Patacas ("MOP"), which is also the functional currency of the Bank. All values are rounded to the nearest

MOP except when otherwise indicated.

Issued and effective, but not yet adopted Macao financial reporting standards during the transition

period

On 27 March 2020, the Macao Special Administrative Region promulgated a number of new and revised

Macao Financial Reporting Standards and Macao Accounting Standards under the Dispatch of Secretary

for Economy and Finance No. 44/2020, herein collectively referred as the "New MFRSs", effective on 28

March 2020 superseding the Macao Financial Reporting Standards promulgated under the Administrative

Regulation No. 25/2005 (herein referred as "MFRSs"). Pursuant to the Dispatch of Secretary for Economy

and Finance No. 44/2020, it provides a transitional option to entities to continue adopting the MFRSs until

31 December 2021. The Bank has opted to continue adopting the MFRSs and not to apply the New MFRSs

in the financial statements for the year ended 31 December 2020.

89 BNU


For clarity, the New MFRSs include the following:

IAS 1 Presentation of Financial Statements

IAS 2 Inventories

IAS 7 Statement of Cash Flows

IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

IAS 10 Events after the Reporting Period

IAS 12 Income Taxes

IAS 16 Property, Plant and Equipment

IAS 17 Leases

IAS 19 Employee Benefits

IAS 20 Accounting for Government Grants and Disclosure of

Government Assistance

IAS 21 The Effects of Changes in Foreign Exchange Rates

IAS 23 Borrowing Costs

IAS 24 Related Party Disclosures

IAS 26 Accounting and Reporting by Retirement Benefit Plans

IAS 27 Separate Financial Statements

IAS 28 Investments in Associates and Joint Ventures

IAS 29 Financial Reporting in Hyperinflationary Economics

IAS 32 Financial Instruments: Presentation

IAS 33 Earnings per Share

IAS 34 Interim Financial Reporting

IAS 36 Impairment of Assets

IAS 37 Provisions, Contingent Liabilities and Contingent Assets

IAS 38 Intangible Assets

IAS 39 Financial Instruments: Recognition and Measurement

IAS 40 Investment Property

IAS 41 Agriculture

IFRS 1 First-time adoption of International Financial Reporting

Standards

IFRS 2 Share-based Payment

90 BNU


IFRS 3 Business Combinations

IFRS 4 Insurance Contracts

IFRS 5 Non-current Assets Held for Sale and Discontinued

Operations

IFRS 6 Exploration for and Evaluation of Mineral Resources

IFRS 7 Financial Instruments: Disclosures

IFRS 8 Operating Segments

IFRS 9 Financial Instruments

IFRS 10 Consolidated Financial Statements

IFRS 11 Joint Arrangements

IFRS 12 Disclosure of Interests in Other Entities

IFRS 13 Fair Value Measurement

IFRS 14 Regulatory Deferral Accounts

IFRS 15 Revenue from Contracts with Customers

IFRIC* Interpretation 1 Changes in Existing Decommissioning, Restoration and

Similar Liabilities

IFRIC Interpretation 2 Members’ Shares in Co-operative Entities and Similar

Instruments

IFRIC Interpretation 4 Determining whether an Arrangement Contains a Lease

IFRIC Interpretation 5 Rights to Interests arising from Decommissioning,

Restoration and Environmental Rehabilitation Funds

IFRIC Interpretation 6 Liabilities arising from Participating in a Specific Market-

Waste Electrical and Electronic Equipment

IFRIC Interpretation 7 Applying the Restatement Approach under IAS 29 Financial

Reporting in Hyperinflationary Economies

IFRIC Interpretation 10 Interim Financial Reporting and Impairment

IFRIC Interpretation 12 Service Concession Arrangements

IFRIC Interpretation 14 IAS 19-The Limit on a Defined Benefit Asset, Minimum

Funding Requirements and their Interaction

IFRIC Interpretation 16 Hedges of a Net Investment in a Foreign Operation

IFRIC Interpretation 17 Distributions of Non-cash Assets to Owners

91 BNU


IFRIC Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments

IFRIC Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine

IFRIC Interpretation 21 Levies

SIC** Interpretation 7 Introduction of the Euro

SIC Interpretation 10 Government Assistance-No Specific Relation to Operating

Activities

SIC Interpretation 15 Operating Leases-Incentives

SIC Interpretation 25 Income Taxes-Changes in the Tax Status of an Entity or its

Shareholders

SIC Interpretation 27 Evaluating the Substance of Transactions Involving the

Legal Form of a Lease

SIC Interpretation 29 Service Concession Arrangements: Disclosures

SIC Interpretation 32 Intangible Assets-Web Site Costs

* International Financial Reporting Interpretations Committee ("IFRIC")

** Standard Interpretations Committee ("SIC")

The Bank has already commenced an assessment of the impact of these New MFRSs but is not yet in a

position to state whether these New MFRSs would have a significant impact on its results of operations

and financial position. The Bank will adopt these New MFRSs from 1 January 2022.

Revenue recognition

Revenue is recognised when it is probable that the economic benefits will flow to the Bank and when

the revenue can be measured reliably, on the following bases:

(a) Interest income is recognised in the statement of profit or loss as it is accrued on a timely basis,

except in the case of non-accrual loans and advances to customers where interest is recorded

in an off-balance sheet account and is not recognised in the statement of profit or loss.

Non-accrual loans and advances to customers represent the credit exposures, which are

overdue for more than three months. Interest income from non-accrual loans and advances

to customers is directly credited to the statement of profit or loss when the interest is

subsequently recovered.

(b) Fees and commission income are recognised when services are provided.

(c) Dividend income is recognised when the right to receive payment has been established.

92 BNU


Loans and advances to customers

Loans and advances to customers are stated in the statement of financial position after deducting

specific and general provisions for impairment losses. Provisions are made against specific advances

when management has doubts on the ultimate recoverability of principal or interest. Specific provision

is made to reduce the carrying amount of loans and advances to customers, net of any collateral, to

the expected net realisable value based on management's assessment of the potential losses on those

identified advances. A general impairment provision of 1% for all loans and advances to customers and

contingent liabilities is made. The provisions are made with reference to the rules and regulations of

AMCM, and are based on estimates made by the management of the Bank, which are reviewed

periodically.

Loans and advances together with the associated provisions are written off when there is no realistic

prospect of future recovery and all collaterals have been realised or have been transferred to the Bank.

Investments in securities

Investments in listed and unlisted equity securities are stated at cost less any impairment losses.

Investments in debt securities are stated at amortised cost less any identified impairment losses.

The Bank assesses at the end of each reporting period whether there is objective evidence that an

investment or a group of investments is impaired. If objective evidence of impairment exists, the

amount of any impairment loss identified is measured as the difference between the asset's carrying

amount and the recoverable amount estimated by management, and is recognised in the statement

of profit or loss. Impairment losses are reversed through the statement of profit or loss (but only up to

the extent of the carrying amount had the impairment not been recognised) if the subsequent increase

in recoverable amounts of the investments can be objectively related to an event occurring after the

impairment loss was recognised in the statement of profit or loss.

Provision for country risk

Provisions for cross border exposures are set aside and are maintained with reference to the

requirements of AMCM.

Off balance sheet derivative financial instruments

Derivative financial instruments including interest rate swaps, forward foreign exchange contracts and

foreign exchange swap contracts are used primarily to hedge the Bank's exposures to interest rate and

foreign exchange risks, arising from operational, financing and investment activities.

The interest arising from the interest rate derivative instruments is recognised as interest income or

interest expense in the statement of profit or loss. The gain or loss arising from the settlement of

foreign exchange derivative instruments is recognised in the statement of profit or loss in the period

in which they arise. The derivative financial instruments are recorded off balance sheet.

93 BNU


Property and equipment and depreciation

Property and equipment, other than construction in progress, are stated at cost or valuation less

accumulated depreciation and any impairment losses. The cost of an item of property and equipment

comprises its purchase price and any directly attributable costs of bringing the asset to its working

condition and location for its intended use.

Expenditure incurred after items of property and equipment have been put into operation, such as

repairs and maintenance, is normally charged to the statement of profit or loss in the period in which

it is incurred. In situations where the recognition criteria are satisfied, the expenditure for a major

inspection is capitalised in the carrying amount of the asset as a replacement. Where significant parts

of property and equipment are required to be replaced at intervals, the Bank recognises such parts as

individual assets with specific useful lives and depreciates them accordingly.

Land and buildings are measured at fair value less any subsequent accumulated depreciation and

impairment losses.

Valuations are performed frequently enough to ensure that the fair value of a revalued asset does not

differ materially from its carrying amount. Any revaluation surplus or deficit is dealt with as a

movement in the asset revaluation reserve. If the total of this reserve is insufficient to cover a deficit,

on an individual asset basis, the excess of the deficit is charged to the statement of profit or loss. Any

subsequent revaluation surplus is credited to the statement of profit or loss to the extent of the deficit

previously charged. On disposal of a revalued asset, the relevant portion of the asset revaluation

reserve realised in respect of previous valuations is transferred to retained profits as a movement in

reserves.

With the exception of freehold land, depreciation is calculated on a straight-line basis to write off the

cost of each item of property and equipment to its residual value over its estimated useful life. The

principal annual rates used for this purpose are as follows:

Freehold land: Not depreciated

Freehold buildings: 2%

Leasehold land and buildings: Over the shorter of the lease terms and 2%

Freehold and leasehold improvements and software: 2% to 33⅓%

Office equipment, furniture and fixtures: 10% to 50%

An item of property and equipment including any significant part initially recognised is derecognised

upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or

loss on disposal or retirement recognised in the statement of profit or loss in the year the asset is

derecognised is the difference between the net sales proceeds and the carrying amount of the relevant

asset.

Construction in progress represents a building under construction, which is stated at cost less any

impairment losses, and is not depreciated. Cost comprises the direct costs of construction and

capitalised borrowing costs on related borrowed funds during the period of construction. Construction

in progress is reclassified to the appropriate category of property and equipment when completed and

ready for use.

94 BNU


Leases

The determination of whether an arrangement is, or contains, a lease is based on the substance of the

arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent

on the use of a specific asset and whether the arrangement conveys a right to use the asset.

Leases are classified as finance leases whenever the terms of the lease transfer to the Bank

substantially all the rewards and risks incidental to ownership of a leased item. All other leases are

classified as operating leases.

Operating lease payments, net of any incentives received from the lessor, are recognised as an expense

in the statement of profit or loss on a straight-line basis over the lease terms.

Lease payments which cannot be allocated reliably between the land and buildings elements are

included in the cost of the land and buildings as a finance lease in property and equipment.

Impairment

The Bank assesses at the end of each reporting period whether there is an indication that an asset may

be impaired. If such an indication exists, the Bank makes an estimate of the asset's recoverable

amount.

An impairment loss is recognised in the statement of profit or loss whenever the carrying amount of

an asset to which it belongs, exceeds its recoverable amount. The impairment loss is reversed if there

has been a favourable change in the estimates used to determine the recoverable amount. A reversal

of the impairment loss is limited to the asset's carrying amount that would have been determined had

no impairment loss been recognised in prior years. The reversal of the impairment loss is credited to

the statement of profit or loss in the year in which it arises.

Income tax

Income tax comprises current and deferred tax. Income tax relating to items recognised outside profit

or loss is recognised outside profit or loss.

Current tax assets and liabilities for the current and prior periods are measured at the amount

expected to be recovered from or paid to the taxation authority, based on tax rates (and tax laws) that

have been enacted or substantively enacted by the end of the reporting period, taking into

consideration interpretations and practices prevailing in the countries in which the Bank operates.

Deferred tax is provided using the liability method, on temporary differences at the end of the

reporting period arising between the tax bases of assets and liabilities and their carrying amounts for

financial reporting purposes. Tax rates enacted or substantively enacted by the end of the reporting

period are used to determine the deferred tax.

Deferred tax liabilities are provided in full while deferred tax assets are recognised to the extent that

it is probable that future taxable profit will be available against which the temporary differences can

be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced

to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or

95 BNU


part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at the

end of each reporting period and are recognised to the extent that it has become probable that

sufficient taxable profit will be available to allow all or part of the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period

when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been

enacted or substantively enacted by the end of the reporting period.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off

current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity

and the same taxation authority.

Foreign currencies

These financial statements are presented in Macao Patacas, which is the Bank's functional currency.

Each entity of the Bank located outside of Macao determines its own functional currency and items

included in the financial statements of each such entity are measured using that functional currency.

Foreign currency transactions recorded by the Bank and its entities located outside of Macao are

initially recorded using their respective functional currency rates prevailing at the dates of

transactions. Monetary assets and liabilities are translated at the functional currency rates of exchange

ruling at the end of the reporting period. Differences arising on settlement or translation of monetary

items are recognised in the statement of profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated

using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair

value in a foreign currency are translated using the exchange rates at the date when the fair value was

measured. The gain or loss arising on translation of a non-monetary item measured at fair value is

treated in line with the recognition of the gain or loss on change in fair value of the item.

The functional currencies of the branches outside of Macao are currencies other than MOP. As at the

end of the reporting period, the assets and liabilities of the Hengqin branch are translated into Macao

Patacas at the exchange rates prevailing at the end of the reporting period and the statements of profit

or loss are translated into Macao Patacas at the monthly average exchange rates during the year. The

resulting exchange difference is recognised in equity and accumulated in the translation reserve. On

disposal of such branches, the component of equity relating to the branch is recognised in the

statement of profit or loss.

Employee benefits

Defined benefit plan

The Bank operates a closed defined benefit pension plan which requires contributions to be made to

a separately administered fund. The benefits are partially prefunded. The assets of the plan are held

separately from those of the Bank under the control of a trustee. The cost of providing benefits under

the defined benefit plan is determined using the projected unit credit actuarial valuation method.

Remeasurement arising from the defined benefit pension plan is recognised immediately in the

statement of profit or loss in the period in which it occurs.

96 BNU


Defined contribution plan

The Bank operates a defined contribution retirement benefits plan, which employees can choose to

join on a voluntary basis. Contributions are made based on a percentage of the employees' basic

salaries and are charged to the statement of profit or loss as they become payable. The assets of the

plan are held separately from those of the Bank in an independently administered fund. The Bank's

employer contributions vest fully with the employees when contributed into the defined contribution

retirement benefit plan, except when there are employees who leave the plan prior to vesting fully in

the contributions, the contributions payable by the Bank are reduced by the amount of forfeited

contributions.

Other employee benefits

Social society scheme

The resident employees of the Bank are required to participate in a central social security scheme

operated by the Social Security Fund of Macao SAR. The Bank is required to contribute a fixed amount

of its payroll costs to the central social security scheme. The contributions are charged to the

statement of profit or loss as they become payable in accordance with the rules of the central social

security scheme.

Provisions

A provision is recognised when the Bank has a present obligation (legal or constructive) as a result of

a past event, and it is probable that a future outflow of resources will be required to settle the

obligation, provided that a reliable estimate can be made of the amount of the obligation. Provisions

are measured at management's best estimate of the expenditure required to settle the obligation at

the end of each reporting period, and are discounted to present value where the effect of the time

value is material.

Government grants

Government grants are recognised at their fair value where there is reasonable assurance that the

grant will be received and all attaching conditions will be complied with. When the grant relates to an

expense item, it is recognised as income on a systematic basis over the periods that the costs, which it

is intended to compensate, are expensed.

Cash and cash equivalents

For the purposes of the cash flow statement, cash and cash equivalents comprise cash and short-term

funds, including cash, deposits with AMCM and current accounts with banks and other financial

institutions, placements with banks and other financial institutions with original maturity at or within

three months.

For the purpose of the statement of financial position, cash and cash equivalents comprise cash and

short-term funds, including cash, deposits with AMCM and placements with banks and other financial

institutions.

97 BNU


12 – SIGNIFICANT ACCOUNTING ESTIMATES

The preparation of the Bank's financial statements requires management to make judgements,

estimates and assumptions that affect the reported amounts of revenues, expenses, assets and

liabilities, and their accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty

about these assumptions and estimates could result in outcomes that could require a material

adjustment to the carrying amounts of the assets or liabilities affected in the future.

Estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the end

of the reporting period, that have a significant risk of causing a material adjustment to the carrying

amounts of assets and liabilities within the next financial year, are described below.

Impairment provisions on loans and advances to customers

The impairment provisions on loans and advances to customers comprise specific and general

impairment provisions.

In determining the specific impairment provision, management estimates the impairment loss on loans

and advances to customers in order to reflect such loans and advances in the financial statements at

their estimated net recoverable amounts based on the Bank's historical loss experience on bad debt

collection and its professional judgement and with reference to the requirements of AMCM. Where

the realisation of collateral and actual cash flows received from the borrowers are subject to future

economic uncertainty, actual recovery from the doubtful debts may differ from the estimated

amounts.

In determining the general impairment provision, the impairment amount, calculated with reference

to the requirements of AMCM, is provided against the total gross loans and advances to customers

and contingent liabilities at the end of the reporting period.

Provisions for country risk

According to "Guideline on Management of Country risk" dated 10 January 2008 issued by AMCM, the

regulated institutions should set aside adequate country risk provisions according to management's

assessment of the probability of losses arising from the cross-border exposures.

Provisions for country risk are currently considered to be nil.

In determining the provision for country risk, the amount calculated, if any, based on the quantitative

and qualitative factors of that country is provided against the cross-border placements with banks and

other financial institutions and loans and advances to customers at the end of the reporting period.

98 BNU


13 – AUDITORS’ REPORT

Independent Auditor's Report on the Summary Financial Statements

To the shareholders of Banco Nacional Ultramarino, S.A.

(Incorporated in Macao with limited liability by shares)

We have audited the financial statements of Banco Nacional Ultramarino, S.A. for 2020 in accordance with

Auditing Standards and Technical Auditing Standards of the Macao Special Administrative Region. In our

auditor’s report dated 22 March 2021, we expressed an unmodified opinion on these financial statements.

The audited financial statements referred to above comprise the statement of financial position as at 31

December 2020, and the statement of profit or loss, the statement of changes in equity and the statement

of cash flows for the year then ended, and a summary of significant accounting policies and other

explanatory notes.

The accompanying summary financial statements set out on pages 83 to 85 prepared by the management

is a summary of the audited financial statements. In our opinion, the summary financial information is

consistent, in all material respects, with the audited financial statements.

For a better understanding of the financial position and financial performance of Banco Nacional

Ultramarino, S.A. and the scope of our audit, the summary financial information should be read in

conjunction with the audited financial statements and our independent auditor's report.

Bao, King To (Certified Public Accountant)

Ernst & Young

Macao

22 March 2021

99 BNU


14 – OPINION OF THE SOLE SUPERVISOR

Shareholders:

In accordance with article 32 e) of the Articles of Association, the Board of Directors of Banco Nacional

Ultramarino, S.A. submitted to the Sole Supervisor, the Balance Sheet, Accounts and Annual Report in

relation to the Bank’s operation in year 2020. In addition, the external auditor’s report as prepared by

«Ernst & Young – Auditores» for the Bank in relation to its activity in the same year was also provided.

During the year, the Sole Supervisor had maintained regular contacts with the Board of Directors,

consulted on the Bank’s activity and always received the collaboration as well as necessary clarification in

an efficient manner.

After reviewing the documents as presented by the Board of Directors, it was found that the documents

reflected clearly the financial and economical situation of the Bank.

The Report of the Board of Directors also explained clearly the business development of the Bank’s activity

in the referred year of operation.

The Sole Supervisor had also reviewed the external auditors’ report and found that the report reflected

truly the financial situation and performance of the Bank as at close of business on 31 December 2020 as

well as the result of the activity for the year ended and which were prepared under the accounting

principles applicable on banking activity.

As such, the Sole Supervisor decided to recommend the approval of:

1. The balance sheet and profit and loss account;

2. The annual report of the Board of Directors.

Macau, 24 March 2021

The Sole Supervisor

CSC & ASSOCIATES, AUDITORS

represented by Chui Sai Cheong

100 BNU


15 – MOST IMPORTANT ADDRESSES

CAIXA GERAL DE DEPÓSITOS

Av. João XXI, 63

1000-300 Lisboa

PORTUGAL

Tel.: 21 795 30 00

Fax: 21 790 50 51

http://www.cgd.pt

SWIFT: CGDIPTPLXXX


Head Office

Av. Almeida Ribeiro, nº. 22

P.O. BOX 465 - Macao

Tel.: 28355111

Fax: 28355653

Telex: 88202BNUMC OM 88606 BNUFX OM

E-mail: [email protected]

[email protected]

[email protected]

http://www.bnu.com.mo

SWIFT: BNULMOMX

Credit Card Center

Av. Almeida Ribeiro, nº. 22

Macao

Tel.: 28335533 Fax: 28713119

http://www.cgd.pt/

mailto:[email protected]

mailto:[email protected]

http://www.bnu.com.mo/

101 BNU


BNU Branch Network

Main Branch

Av. Almeida Ribeiro, 22

Tel.: 28355111 Fax: 28355130

Iao Hon

Rua 1 do Bairro Iao Hon,

Edf Iao Kai

Tel.: 28571921 Fax: 28400395

Kinglight Garden

Rua de Bragança Nº. 329,

R/C Edf. Kinglight Garden (AI/AH),

Taipa

Tel.: 28838028; 28839555

Fax: 28839328

Mercado Vermelho

Av. Almirante Lacerda, Nº. 90-92

Tel.: 28371166 Fax: 28211619

Sidónio Pais

Av. Sidónio Pais, Nº. 20-20A

Tel.: 28584436 Fax: 28524589

Chun Fok

Rua do Pai Kok Nº 18-28,

R/C Chun Fok Village 2nd Fase, Taipa

Tel.: 28825892; 28825895

Fax: 28825799

São Lourenço

Rua da Praia do Manduco, Nº 3,

R/C, A

Tel.: 28572259 Fax: 28933200

Fai Chi Kei

Rua Comandante João Belo, No.23

R/C Edf. Teng Pou Kok

Tel.: 28260165 Fax: 28260637

China Plaza

Avenida da Praia Grande, Nº 754,

China Plaza, R/C D & E, Macao

Tel.: 28718625; 28715668

Fax: 28718623

Horta e Costa

Av. Horta e Costa, Nº 80A

Tel.: 28517962 Fax: 28527853

Taipa (Flower City)

Rua de Coimbra, No.105 ,Taipa

Tel.: 28833633; 28833815

Fax: 28833622

Nova City

Avenida da Kwong Tung, Nº 732,

R/C I, Taipa, Macao

Tel.: 28842531; 28842532

Fax: 28842535

102 BNU


Areia Preta

Av. Leste do Hipódromo, 89 D

Tel.: 28470032 Fax: 28470160

NAPE

Av. Sir Anders Ljungstedt Nº. 206

Jardim Brilhantismo, R/C, A

Tel.: 28723672; 28723676

Fax: 28723418

Rua da Barca

Rua da Barca, Nº 47, Macao

Tel.: 28211570 Fax: 28210993

Chong Fu

Av. Da Amizade, Nº 711

Edf. Chong Fu R/C

Tel.: 28703478; 28702870

Fax: 28705180

Seac Pai Van

Estrada de Seac Pai Van, No. 970,

Edif. On Son R/C C,

Coloane, Macao

Tel.: 28503162; Fax: 28503163

Villa de Mer

Zona da Areia Preta, S/N,

Villa de Mer, R/C, W, X, Macao

Tel.: 28767566 Fax: 28767556

Cotai

Shop Nº 2466ª, The Grand Canal

Shoppes, The Venetian Macao

Resort Hotel,

Estrada da Baía de N. Senhora da

Esperança,

The Cotai Srip, Taipa, Macao

Tel.: 28576001, 28576002

Fax: 28576603

University of Macao

Guest House of the University of

Macao, N1-RC,

Avenida da Universidade,

Taipa, Macao, China

Tel.: (853) 2893 8020 Fax: (853)

28938026

Hengqin

Room 3001 Block 2,

Hengqin Headquarter Building

No. 88 Gangao Avenue

Hengqin Zone Zhuhai City

Guangdong Province

Tel.: (86-756) 8868301 Fax: (86-756)

8868109

103 BNU


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