MATERIAL EVENT

Banif - Banco Internacional do Funchal, SA, ("Banif") started two years ago a far reaching restructuring process aimed at repositioning Banif in a improved profitability path, in a context of structural changes in the financial sector and in the regulatory and macro prudential environment.
Significant cost reductions are still needed to achieve the abovementioned goals. Therefore, Banif's Executive Commission decided to anticipate and accelerate the ongoing process by closing additional 60 branches in 2014. This adjustment will imply a necessary reduction in the workforce.
For that reason, Banif announced a program for voluntary and mutually agreed termination of labor contracts. This program is valid for a short period of time and should not exceed 300 employees.
With these measures, Banif is creating the conditions for reaching its strategic goals for 2017 both in terms of geographic concentration and focus on the core business segments.
Lisbon, 17th of March 2014

The Issuer

Banif - Banco internacional do Funchal, SA Listed Company

Registered Office: Rua de João Tavira, 30 - 9004-509 Funchal

Share Capital: 1,582,195,220.43 Euros

Corporate Tax Number: 511 202 008

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